Document:

exv10w17

 

Exhibit 10.17

	 	 	 
	 

	 	June 24, 2005

Ascarate Group LLP, a Texas

     limited liability partnership

221 North Kansas, Suite 1700

El Paso, Texas 79901

	 	 	 	 	 
	 

	 	Re:
	 	$2,000,000.00 Loan by Western Refining Company, L.P., a Delaware limited
Partnership (“Lender”) to Ascarate Group LLP, a Texas limited liability partnership
(the “Borrower”)

Gentlemen:

     This will evidence Lender’s agreement to make a loan to the Borrower in the amount of Two
Million and No/100s Dollars ($2,000,000.00) (the “Loan”), to be secured by a Deed of Trust,
Security Agreement and Financing Statement (“Deed of Trust”) covering the following described land
(the “Property”):

PARCEL 1:

Lot 13, Block 17, Womble Addition, an addition to the City of El Paso, El Paso
County, Texas, according to the plat thereof recorded in Volume 13, Page 32, Plat
Records of El Paso County, Texas;

PARCEL 2:

Lot 20, Block 7, Womble Addition, an addition to the City of El Paso, El Paso
County, Texas, according to the map thereof on file in Volume 13, Page 32, Plat
Records of El Paso County, Texas;

and additional properties hereafter acquired by Borrower with funds advanced hereunder.

     The Loan shall be evidenced by a Promissory Note in the amount of $2,000,000.00 (the “Note”),
representing funds to be advanced by Lender, at its discretion, to finance the acquisition of
additional property or for other purposes. The Note shall bear interest from the date of advance
thereunder until maturity at Prime Rate (as defined in the Note) in effect from day to day,
computed on the basis of actual days elapsed in a year. All past due principal and interest shall
bear interest after maturity (whether by acceleration or otherwise) until paid at an interest rate
per annum which, from day to day, shall be equal to the lesser of: (a) the Maximum Rate (as defined
in the Note), or (b) the rate of twelve percent (12%).

     Accrued interest only shall be due and payable in quarterly installments, the first such
quarterly installment of accrued interest being due and payable on September 1, 2005, with a like
such quarterly installment of accrued interest only being due and payable on the first day of each

 

 

third month thereafter until June 1, 2010, at which time the entire unpaid balance plus accrued
interest shall be due and payable.

     1. Closing Documents. At the time of closing of the Loan, Borrower shall furnish
Lender the following, all of which shall be in form and substance satisfactory in all respects to
Lender and its Lender and its counsel:

     (a) The Note executed by Borrower;

     (b) The Deed of Trust covering the above-described Property executed by
Borrower;

     (c) Such evidence as may be required by Lender as to the current existence and
good standing of Borrower; and

     (d) Such other information and/or documents as Lender may reasonably require.

     2. Covenants, Representations and Warranties. As an inducement to Lender to make the
Loan, Borrower makes the following representations, warranties and covenants:

     (a) There is no significant material fact or condition relating to the
financial condition of Borrower or the Property which has not been disclosed to
Lender.

     (b) No Deed of Trust, Security Agreement or other security instrument covering
any portion of the Property has been executed, no Financing Statement filed, and no
lien, security interest, mechanic’s lien or materialmen’s lien, has attached to or
been perfected against any of the Property other than the liens contemplated hereby.

     (c) During the term of the Loan, Borrower will maintain or cause to be
maintained policies of insurance, each with a standard mortgagee’s clause, with loss
payable to Lender, providing that no cancellation, reduction in amount or material
change in coverage shall be effective until at least ten (10) days after receipt by
Lender and Borrower of written notice thereof, issued by such insurers with such
types of coverage (including, but not limited to, fire and extended coverage,
vandalism and commercial general liability insurance with broad form contractual
liability coverage) and in such amounts as may be satisfactory to Lender. Borrower
covenants and agrees to deliver to Lender the original or certificates of any and
all policies or renewal policies required hereunder, bearing the notations
evidencing the payment of premiums.

     (d) Until final payment to Lender of the Note, Borrower will permit Lender or
its agents at any time and from time to time to enter upon the Property

 

 

for purposes of inspection. Inspection by Lender, or its agents, is for the sole
purpose of protecting the security of Lender.

     (e) Borrower will not permit the Property to become subject to any liens or
encumbrances other than those herein referenced.

     (f) Borrower will promptly notify Lender of any material changes in the facts
or circumstances represented or warranted by Borrower in this Agreement.

     3. Advances. Throughout the term of this Loan, Borrower shall have the right to
request Lender to advance funds to finance the acquisition of additional real properties located in
El Paso County, Texas or for any other purpose, and Lender, upon receipt of any such request,
shall, at Lender’s option, advance such funds to Borrower as Lender at that time may deem
appropriate, if at all.

     4. Default. The term “default” as used herein shall mean the occurrence of any one or
more of the following events:

     (a) Failure to pay installment of interest or principal due under the Note
within three (3) days after written notice thereof from Lender;

     (b) Breach of any of the covenants, agreements or obligations contained herein
or in any instrument or document mentioned herein other than the obligation to repay
the Loan in accordance with its terms, and the continuance of such breach for a
period of ten (10) days after written notice from Lender to Borrower specifying such
breach;

     (c) Finding by Lender that any statement, representation or warranty in this
Agreement or in any certificate or document herein mentioned is untrue or incorrect
in any material respect and the failure and refusal of Borrower to render the same
immaterial or to remedy it within ten (10) days after written notice from Lender to
Borrower specifying such breach;

     (d) Any assignment for the benefit of creditors by Borrower or the adjudication
of Borrower as an involuntary bankruptcy; or

     (e) Filing by Borrower of a voluntary petition in bankruptcy.

     Any sums expended by Lender pursuant to the exercise of any remedy provided in this Paragraph
4 shall be part of the indebtedness owing by Borrower to Lender.

     Should a default occur and be continuing, Lender may, at its election, do any one or more of
the following:

 

 

     (a) Without notice, notice of intent to accelerate, notice of acceleration,
demand, notice of intent to demand, notice of demand or presentment, which are all
hereby expressly waived, declare the unpaid principal balance and accrued interest
of the indebtedness immediately due and payable.

     (b) So far as Borrower is concerned, and without notice to Borrower which is
hereby expressly waived, take possession of the Property.

     (c) Refuse to advance additional funds to Borrower, and thereafter Lender shall
have no obligation to advance funds to Borrower. If Lender refuses to advance
additional funds to Borrower pursuant to this subsection, all rights, duties and
obligation hereunder other than Lender’s obligation to advance funds to Borrower,
shall continue in full force and effect.

     (d) Pursue any remedy available to Lender at law or in equity, including
without limitation, foreclosure of the Deed of Trust lien against the Property,
institute collection proceedings against Borrower or exercise any and all other
rights and remedies afforded Lender under the terms of the collateral documents
executed in connection with the Loan.

     5. Miscellaneous.

     (a) Any notice required or permitted hereunder shall be in writing, addressed
to the party to be notified at the address stated below (or at such other address as
may have been designated by written notice), properly stamped, and deposited in the
United States mail, as certified mail, return receipt requested. The address of
each party for the purpose of this section is as follows:

	 	 	 	 	 
	 

	 	Borrower:
	 	Ascarate Group LLP, a Texas

limited liability partnership

221 North Kansas, Suite 1700

El Paso, Texas 79901
	 
	 	 	 	 
	 

	 	Lender:
	 	Western Refining Company, L.P., a

Delaware limited partnership

6500 Trowbridge

El Paso, Texas 79905

     Any notice given in accordance with this Paragraph 5(a) shall be deemed
received upon delivery if by hand delivery or three (3) days after deposit in the
U.S. Mail.

     (b) This Loan Agreement and all documents to be executed in connection herewith
are to be governed by and construed in accordance with the laws of the State of
Texas and the United States of America. The jurisdiction and

 

 

venue of all litigation, bankruptcy actions and other legal proceedings involving
the Property or any of the loan documents shall be in El Paso County, Texas.

     (c) This Agreement shall not be assignable by operation of law or otherwise
without the written consent of Lender.

     (d) This Agreement shall be binding upon, and shall inure to the benefit of
Lender, its successors and assigns and shall be binding upon Borrower and its
successors and assigns.

     (e) Time is of the essence with respect to the performance of this Agreement.

     (f) Failure by Lender to exercise any right or power accruing hereunder shall
not impair such right or power or be construed to be a waiver of any breach or any
other covenant, condition or agreement herein contained.

     (g) Borrower and Lender intend to conform strictly to the applicable federal or
state usury laws now or hereafter in force with respect to the Loan. To such end:
(i) the aggregate of all interest and other charges constituting interest under such
applicable usury laws and contracted for, chargeable or receivable under all
documents and instruments now or hereafter executed in connection with the Loan
(including the Note) shall never exceed the maximum amount of interest, nor produce
a rate in excess of the maximum contract rate of interest that Lender is authorized
to charge Borrower under such applicable usury laws; (ii) if any excess interest is
provided for, it shall be deemed a mistake, and the excess shall, at the option of
Lender, either be refunded to Borrower or credited on the unpaid principal balance
of the Loan, and the loan documents shall be automatically reformed to permit only
the collection of the maximum legal contract rate and the maximum amount of
interest; (iii) in determining the maximum amount of interest that Lender may charge
to Borrower, all interest shall be amortized, prorated, allocated and spread over
the entire term of the Loan (as extended, if applicable) to the full extent
permitted by applicable federal or state law; and (iv) in the event that the Loan is
prepaid or the maturity is accelerated, unearned interest shall be cancelled and, if
theretofore paid, shall, at the option of Lender, either be refunded to Borrower or
credited on the unpaid balance of the Loan.

 

 

     If the foregoing terms are acceptable to Borrower, please indicate so by your execution
hereof.

	 	 	 	 	 	 	 	 	 
	 	 	Yours very truly,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WESTERN REFINING COMPANY, L.P., a 

Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Refinery Company, L.C., a Texas limited

liability company, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:

Name:
	 	/s/ Scott Weaver
 

Scott Weaver
	 	 
	 

	 	 	 	Title:
	 	Vice President	 	 

LENDER

	 	 	 	 	 
	ACCEPTED this 24 day of June, 2005.	 	 
	 
	 	 	 	 
	ASCARATE GROUP LLP, a Texas	 	 
	limited liability company	 	 
	 
	 	 	 	 
	By:

Name:

	 	/s/ Scott Weaver
 

Scott Weaver
	 	 
	Title:

	 	Designated Representative	 	 
	 
	 	 	 	 
	BORROWERexv10w18

 

Exhibit 10.18

NON-EXCLUSIVE AIRCRAFT LEASE AGREEMENT

Dated as of the 13th day of December, 2004

between

N456JW Aviation, Inc.

as Owner,

and Western Refining Company, L.P.,

as Lessee,

concerning one Cessna 560XL aircraft bearing

U.S. registration number N456JW,

and

Manufacturer’s serial number 560-5033.

* * *

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.

* * *

Exhibit B  is

intentionally omitted for FAA submission purposes.

 

 

     This NON-EXCLUSIVE AIRCRAFT LEASE AGREEMENT (the “Agreement”) is entered into as of this 13th
day of December, 2004 (the “Effective Date”), by and between Western Refining Company, L.P.
(“Lessee”), and N456JW Aviation, Inc. (“Owner”).

W I T N E S S E T H:

     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.

1

 

     “Business Day” means any day of the year in which banks are not authorized or required to
close in the State of Indiana.

     “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.

     “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 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
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 and Registration; Subordination. Owner has exclusive and equitable title to the
Aircraft, and exclusive leasehold possessory rights to the Aircraft. Lessee acknowledges that
title to the Aircraft shall remain vested in Owner, and Lessee undertakes, to the extent permitted
by Applicable Law, to do all such further acts, deeds, assurances or things as may, (i) in the
reasonable opinion of the Owner, be necessary or desirable in order to protect or preserve Owner’s
title to the Aircraft and (ii) in the reasonable opinion of the Owner, be necessary or desirable in
order to protect or preserve Owner’s rights. Notwithstanding anything in this Agreement to the
contrary, any rights Lessee may have in or to the Aircraft by virtue of this Agreement, including
Lessee’s rights to possession and use of the Aircraft, are in all respects subordinate, junior, and
subject to Owner’s rights and interests. To the extent requested by Owner, its successors or
assigns, Lessee shall take all action necessary to continue all right, title and interest of Owner,
its successors or assigns in the Aircraft under applicable law.

     5.2 Use and Operation. Except as otherwise expressly provided herein, Lessee shall be solely
and exclusively responsible for the use, operation and control of the Aircraft while in its
possession during the Term of this Agreement. Lessee (i) shall operate the Aircraft in accordance
with the provisions of Part 91 of the FAR, (ii) shall not operate the Aircraft in commercial
service, as a common carrier, or otherwise on a compensatory or “for hire” basis except to the
limited extent permitted under Subpart F of Part 91 of the FAR, if applicable, (iii) shall not
operate or locate the Airframe or any Engine, or suffer the Airframe or any Engine to be operated
or located, in any area excluded from coverage by any insurance policy in effect or required to be
maintained hereunder with respect to the Airframe or Engines, or in any war zone, (iv) shall not
operate the Airframe or any Engine or permit the Airframe or any Engine to be operated during the
Term except in operations for which Lessee is duly authorized, or use or permit the Aircraft to be
used for a purpose for which the Aircraft is not designed or reasonably suitable, (v) shall not
permit the Airframe or any Engine to be maintained, used or operated

 

 

during the Term in violation of any Applicable Law, or contrary to any manufacturer’s operating
manuals or instructions, and (vi) shall not knowingly permit the Aircraft to be used for the
carriage of any persons or property prohibited by law, nor knowingly permit the Aircraft to be used
during the existence of any known defect except in accordance with the FAR.

     5.3 Lessee to Pay All Operating Costs. Other than as expressly provided herein, Lessee shall
arrange for and pay all operating costs associated with Lessee’s use and incurred during the Term,
including, without limitation, costs of pilots, cabin personnel, mechanics, and other ground
support personnel (the foregoing collectively, the “Flight Crew”); fuel; oil; lubricants; landing
and navigation fees; airport charges; passenger service and any and all other expenses of any kind
or nature, arising directly or indirectly in connection with or related to the use, movement and
operation of the Aircraft by Lessee during the Term. The obligations of Lessee under this
provision shall survive the end of the Term.

     5.4 Maintenance of Aircraft. Owner agrees to deliver the Aircraft to Lessee in a good and
airworthy operating condition and in compliance with applicable maintenance standards and
practices. Lessee shall thereafter be solely responsible for any repairs or maintenance of the
Aircraft that shall be required during the term of this Agreement associated with Lessee’s use,
movement and operation of the Aircraft. Lessee shall coordinate conducting and paying for repairs
and maintenance of the Aircraft with other Lessees of the Aircraft. The term “repairs” shall
include all necessary service, repairs, tests, and maintenance (both routine and extraordinary) of
Aircraft as appropriate to maintain the Aircraft in accordance with Applicable Law. Lessee shall
maintain or cause to be maintained all Aircraft Documents required by the FAA, the Airframe
manufacturer, the Engine manufacturer, and the manufacturers of component Parts, and said Aircraft
Documents shall be maintained in a current, accurate, and complete manner and shall be available at
all reasonable times for examination and inspection by Owner. Lessee also agrees to use its best
efforts promptly to furnish Owner such information with respect to its use of the Aircraft as shall
be required to enable Owner to file all reports required by any government authority relating to
Owner’s ownership of Aircraft. Owner shall have no expense or liability for repair or maintenance
delays and shall not be liable to Lessee for any damage from loss of profit or loss of use of
Aircraft, either before or after delivery of Aircraft to Lessee.

     5.5 Flight Crew. Lessee, at its sole expense, shall locate and retain (either through direct
employment or contracting with an independent contractor for flight services) a duly-qualified
Flight Crew. All members of the Flight Crew shall be fully competent and experienced, duly
licensed, and qualified in accordance with the requirements of Applicable Law and all insurance
policies covering the Aircraft. All members of the Flight Crew who are pilots shall be fully
trained in, accordance with an FAA-approved training program, including initial and recurrent
training and, where appropriate, contractor-provided simulator training.

     5.6 Operational Control. THE PARTIES EXPRESSLY AGREE THAT LESSEE SHALL AT ALL TIMES WHILE THE
AIRCRAFT IS IN ITS POSSESSION DURING THE TERM MAINTAIN OPERATIONAL CONTROL OF THE AIRCRAFT, AND
THAT THE INTENT OF THE PARTIES IS THAT THIS AGREEMENT CONSTITUTE A “DRY” OPERATING LEASE. Lessee
shall exercise exclusive authority over initiating, conducting, or

 

 

terminating any flight conducted pursuant to this Agreement, and the Flight Crew shall be under the
exclusive command and control of Lessee in all phases of such flights.

     5.7 Authority of Pilot in Command. Notwithstanding that Lessee shall have operational control
of the Aircraft during any flight conducted pursuant to this Agreement, Owner and Lessee expressly
agree that the Pilot in Command, in his or her sole discretion, may terminate any flight, refuse to
commence any flight, or take any other flight-related action which in the judgment of the Pilot in
Command is necessitated by considerations of safety. The Pilot in Command shall have final and
complete authority to postpone or cancel any flight for any reason or condition which in his or her
judgment would compromise the safety of the flight. No such action of the Pilot in Command shall
create or support any liability for loss, injury, damage or delay to Owner.

     5.8 Right to Inspect. Owner and its agents shall have file right to inspect the Aircraft or
the Aircraft Documents at any reasonable time, upon giving Lessee reasonable notice, to ascertain
the condition of the Aircraft and to satisfy Owner that the Aircraft is being properly repaired
and maintained in accordance with the requirements of this Agreement. All required repairs shall
be performed as soon as practicable after such inspection.

     5.9 Aircraft Documents. Lessee shall, at its expense, maintain and preserve, or cause to be
maintained and preserved, in the English language, all Aircraft Documents in a complete, accurate,
and up-to-date manner.

SECTION 6. CONDITION DURING TERM AND RETURN OF AIRCRAFT

     6.1 Return. Upon the last Business Day of the Term or the date of earlier termination hereof,
Lessee shall return the Aircraft to the Owner by delivering the same, at the Lessee’s own risk and
expense, to the Operating Base, fully equipped with all Engines installed thereon. The Aircraft at
the time of its return shall be in the condition set forth in this Section 6 and shall be free and
clear of all Liens.

     6.2 Condition of Aircraft. The Aircraft at the time of its return to Owner shall have been
maintained and repaired in accordance with the provisions of this Agreement with the same care and
consideration for the technical condition of the Aircraft as if it were to have been kept in
continued regular service by the Lessee, and shall meet the following requirements:

     (a) Operating Condition. The Aircraft shall be in as good operating condition
as on the Delivery Date, ordinary wear and tear excepted.

     (b) Cleanliness Standards. The Aircraft shall be clean and shall have received
a recent exterior and an interior deep cleaning.

     (c) Certificate of Airworthiness. The Aircraft shall have, and be in
compliance with, a current valid certificate of airworthiness issued by the FAA, and shall
be airworthy according to manufacturer’s specifications and FAA
regulations.

 

 

     6.3 Aircraft Documents. Lessee shall deliver, or cause to be delivered to Owner, at the time
the Aircraft is returned to Owner, all of the Aircraft Documents, updated and maintained by Lessee,
or on behalf of Lessee, through the date of return of the Aircraft.

     SECTION 7. LIENS

     7.1 Lessee shall ensure that no Liens are created or placed against the Aircraft by Lessee or
third parties as a result of Lessee’s actions. Lessee shall notify Owner promptly upon learning of
any Liens not permitted by these terms. Lessee shall, at its own cost and expense, take all such
actions as may be necessary to discharge and satisfy in full any such Lien promptly after the same
becomes known to it. Lessee shall pay all charges related to the Aircraft as they become due and
payable.

     SECTION 8. INSURANCE

     8.1 Liability. Owner shall maintain, or cause to be maintained, bodily injury and property
damage, liability insurance in an amount no less than the amount outlined on Exhibit A. Combined
Single Limit for the benefit of itself, Lessee, and Owner, in connection with the use of the
Aircraft. Said policy shall be an occurrence policy naming Owner, Owner and Lessee as Named
Insured.

     8.2 Hull. Owner shall maintain, or cause to be maintained, all risks aircraft hull insurance
in an amount equal to the fair market value of the Aircraft, which the parties agree is not less
than the amount outlined on Exhibit A, and such insurance shall name Owner and Owner as loss payees
as their interests may appear.

     8.3 Insurance Certificates. Owner will provide Lessee with a Certificate of Insurance upon
execution of this Agreement.

     SECTION 9. DEFAULTS AND REMEDIES

     9.1 Upon the occurrence of any failure of Lessee to duly observe or perform any of its
obligations hereunder and at any time thereafter so long as the same shall be continuing, the Owner
may, at its option, declare in writing to the Lessee that this Agreement is in default; and at any
time thereafter, so long as the Lessee shall not have remedied the outstanding default, the Owner
may cancel, terminate, or rescind this Agreement.

     SECTION 10. NOTICES

     10.1 All communications, declarations, demands, consents, directions, approvals, instructions,
requests and notices required or permitted by this Agreement shall be in writing and shall be
deemed to have been duly given or made when delivered personally or transmitted electronically by
e-mail or facsimile, receipt acknowledged, or in the case of documented overnight delivery service
or registered or certified mail, return receipt requested, delivery charge or postage prepaid, on
the date shown on the receipt thereof, in each case at the address set forth below:

 

 

	 	 	 	 	 
	If to Owner:

	 	N456JW Aviation, Inc.
	 	Tel: 915-775-3300
	 

	 	8000-10 Airport Rd.
	 	Fax: 915-775-5587
	 

	 	Santa Teresa, NM 88008	 	 
	 
	 	 	 	 
	If to Lessee:

	 	Western Refining Company, L.P.
	 	Tel: 915-775-3300
	 

	 	6500 Trowbridge Drive
	 	Fax: 915-775-5587
	 

	 	El Paso, TX 79905	 	 

SECTION 11. RISK OF DAMAGE OR LOSS

     11.1 Risk of Loss. At all times while the Aircraft is in under the operational control of
Lessee during the Term, Lessee shall bear the entire risk of an Event of Loss to the Aircraft, and
shall indemnify and hold Owner harmless from and against any Event of Loss (including, without
limitation, destruction, loss, theft, requisition of title, or use, confiscation, taking or damage
of or to the Aircraft from any cause), and all damages (including consequential, direct and
punitive), claims (in contract, tort or otherwise), suits, actions or proceedings arising from the
use, operation or storage of the Aircraft. In the event of an Event of Loss to the Aircraft,
Lessee shall immediately (i) report the Event of Loss to Owner, the insurance company or companies,
and to any and all applicable governmental agencies, and (ii) furnish such information and execute
such documents as may be required and necessary to collect the proceeds from any insurance
policies.

     SECTION 12. MISCELLANEOUS

     12.1 Entire Agreement. This Agreement, and all terms, conditions, warranties, and
representations herein, are for the sole and exclusive benefit of the signatories hereto. This
Agreement constitutes the entire agreement of the parties as of its Effective Date and supersedes
all prior or independent, oral or written agreements, understandings, statements, representations,
commitments, promises, and warranties made with respect to the subject matter of this Agreement.

     12.2 Other Transactions. Except as specifically provided in this Agreement, none of the
provisions of this Agreement, nor any oral or written statements, representations, commitments,
promises, or warranties made with respect to the subject matter of this Agreement shall be
construed or relied upon by any party as the basis of, consideration for, or inducement to engage
in, any separate agreement, transaction or commitment for any purpose whatsoever.

     12.3 Prohibited and Unenforceable Provisions. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such ,jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibitions or unenforceability in any jurisdiction. To the extent permitted
by applicable law, each of Owner and Lessee hereby waives any provision of applicable law which
renders any provision hereof prohibited or unenforceable in any respect.

     12.4 Enforcement. This Agreement, including all agreements, covenants, representations and
warranties, shall be binding upon and inure to the benefit of, and may be enforced by Owner,
Lessee, and each of their agents, servants and personal representatives.

 

 

     12.5 Headings. The section and subsection headings in this Agreement are for convenience of
reference only and shall not modify, define, expand, or limit any of the terms or provisions
hereof.

     12.6 Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same instrument.

     12.7 Amendments. No term or provision of this Agreement may be amended, changed, waived,
discharged, or terminated orally, but only by an instrument in writing signed by the party against
which the enforcement of the change, waiver, discharge, or termination is sought.

     12.8 No Waiver. No delay or omission in the exercise or enforcement or any right or remedy
hereunder by either party shall be construed as a waiver of such right or remedy. All remedies,
rights, undertakings, obligations, and agreements contained herein shall be cumulative and not
mutually exclusive, and in addition to all other rights and remedies which either party possesses
at law or in equity.

     12.9 No Assignments. Neither party may assign its rights or obligations under this Agreement
without the prior written permission of the other.

     12.10 Governing Law. This Agreement shall in all respects be governed by, and construed in
accordance with, the laws of the state designated in Exhibit A, including all matters of
construction, validity and performance, without giving effect to its conflict of laws provisions.

     SECTION 13. TRUTH IN LEASING

     13.1 TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 OF THE FAR’s.

     WITHIN THE TWELVE (12) MONTH PERIOD PRECEDING THE DATE OF THIS AGREEMENT, THE AIRCRAFT HAS
BEEN INSPECTED AND MAINTAINED AND IN ACCORDANCE WITH THE FOLLOWING PROVISIONS OF FAR:

     CHECK ONE:

     o 91.409(f)(1): A continuous airworthiness inspection program that is part of a
continuous airworthiness maintenance program currently in use by a person holding an air
carrier operating certificate or an operating certificate issued under FAR Part 121, 127, or
135 and operating that make and model aircraft under FAR Part 121 or operating that make and
model under FAR Part 135 and maintaining it under FAR 135.411(a)(2).

     o 91.409(f)(2): An approved aircraft inspection program approved under FAR
135,419 and currently in use by a person holding an operating certificate issued under FAR
Part 135.

 

 

     x 91.409(f)(3): A current inspection program recommended by the manufacturer.

     o 91.409 (f)(4): Any other inspection program established by the registered owner
or operator of the Aircraft and approved by the Administrator of the Federal Aviation
Administration in accordance with FAR 91.409 (g).

     THE PARTIES HERETO CERTIFY THAT DURING THE “TERM OF THIS AGREEMENT AND FOR OPERATIONS
CONDUCTED HEREUNDER, THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED IN ACCORDANCE WITH THE
PROVISIONS OF FAR:

     CHECK ONE:

	 	 	 	 	 	 	 	 	 
	 

	 	o 91.409(f)(1)
	 	o 91.409(f)(2)
	 	x 91.409(f)(3)
	 	o 91.409 (f)(4)

     LESSEE ACKNOWLEDGES THAT WHEN IT OPERATES THE AIRCRAFT UNDER THIS AGREEMENT, IT SHALL BE KNOWN
AS, CONSIDERED, AND IN FACT WILL BE THE OPERATOR OF SUCH AIRCRAFT. EACH PARTY HERETO CERTIFIES
THAT IT UNDERSTANDS THE EXTENT OF ITS RESPONSIBILITIES, SET FORTH HEREIN, FOR COMPLIANCE WITH
APPLICABLE FEDERAL AVIATION REGULATIONS.

     AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND PERTINENT FEDERAL AVIATION
REGULATIONS CAN BE OBTAINED FROM THE NEAREST FEDERAL AVIATION ADMINISTRATION FLIGHT STANDARDS
DISTRICT OFFICE, GENERAL AVIATION DISTRICT OFFICE, OR AIR CARRIER. DISTRICT OFFICE.

     THE PARTIES HERETO CERTIFY THAT A TRUE COPY OF THIS AGREEMENT SHALL BE CARRIED ON THE AIRCRAFT
AT ALL TIMES, AND SHALL BE MADE AVAILABLE FOR INSPECTION UPON REQUEST BY AN APPROPRIATELY
CONSTITUTED IDENTIFIED REPRESENTATIVE OF THE ADMINISTRATOR OF THE FAA.

* * *

 

 

     IN WITNESS WHEREOF, the Owner and the Lessee have, each caused this Non-Exclusive Aircraft
Lease Agreement to be duly executed as of the Effective Date.

	 	 	 	 	 	 	 
	 

	 	OWNER:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	N456JW Aviation, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul L. Foster	 	 
	 

	 	Print:
	 	 

Paul L. Foster
	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 

	 	LESSEE:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Western Refining Company, L.P.	 	 
	 

	 	By:
	 	Refinery Company, L.C.	 	 
	 

	 	 	 	Its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott D. Weaver
 

	 	 
	 

	 	Print:
	 	Scott D. Weaver	 	 
	 

	 	Title:
	 	CFO	 	 

12

 

NON-EXCLUSIVE AIRCRAFT LEASE AGREEMENT

Exhibit A

Aircraft Make/Model

Cessna 560XL

FAA Registration No.

N456JW

Serial Number

560-5033

Engine Manufacturer

P&W

Base Airport

Dona Ana County

Controlling State Law

New Mexico

 

 

NON-EXCLUSIVE AIRCRAFT LEASE AGREEMENT

Exhibit B

Initial Rental Payment — Deposit on First Year’s Rent

	 	 	 
	Amount
	 	Date
	 	 	 
	$5,000	 	1/31/05

Hourly Rent: $600 per Flight Hour

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