CERNER CORPORATION AIRCRAFT TIME SHARING AGREEMENT
Exhibit 10.3
CERNER CORPORATION
This Time Sharing Agreement (the Agreement), is made and entered into this 7th
day of February, 2007, by and between Cerner Corporation, with a principal address of 0000
Xxxxxxxxx Xxxxxxx, Xxxxx Xxxxxx Xxxx, Xxxxxxxx 00000 (Operator), and Xxxxxxxx X. Xxxxx (User).
WITNESSETH, that
WHEREAS, Operator operates that certain Hawker aircraft, manufacturer’s serial number 258653
bearing the United States Registration Number N203TM (the Aircraft);
WHEREAS, Operator employs a fully qualified flight crew to operate the Aircraft; and
WHEREAS, Operator desires to lease said Aircraft with flight crew to User and User desires to
lease said Aircraft and flight crew from Operator on a time sharing basis pursuant to Section
91.501(c)(1) of the Federal Aviation Regulations (“FARs”).
NOW THEREFORE, Operator and User declaring their intention to enter into and be bound by this
Agreement, and for the good and valuable consideration set forth below, hereby covenant and agree
as follows:
1. Operator agrees to lease the Aircraft to User pursuant to the provisions of FAR
91.501(c)(1) and to provide a fully qualified flight crew for all operations on a non-continuous
basis commencing on the first date set forth hereinabove and continuing unless and until
terminated. Either party may terminate this Agreement by giving thirty (30) days written notice to
the other party. Operator shall have the right to add or substitute aircraft of similar type,
quality and equipment, and to remove aircraft from the fleet, from time to time during the term of
this Agreement.
2. User shall pay Operator for each flight conducted under this Agreement the actual expenses
of each specific flight as described in FAR 91.501(d)(a)-(i), including the actual expense items of
any “deadhead” flights made for User, as authorized by FAR Part 91.501(d). The expenses authorized
by FAR Part 91.501(d)(a)-(i) include:
| (a) | Fuel, oil, lubricants, and other additives. | ||
| (b) | Travel expenses of the crew, including food, lodging and ground transportation. | ||
| (c) | Hangar and tie down costs away from the aircraft’s base of operation. | ||
| (d) | Insurance obtained for the specific flight. |
1
| (e) | Landing fees, airport taxes and similar assessments. | ||
| (f) | Customs, foreign permit, and similar fees directly related to the flight. | ||
| (g) | In-flight food and beverages. | ||
| (h) | Passenger ground transportation. | ||
| (i) | Flight planning and weather contract services. |
3. Operator will pay all expenses related to the operation of the Aircraft when incurred, and
will provide an invoice and xxxx User for the expenses enumerated in paragraph 2 above on the last
day of the month in which any flight or flights for the account of User occur. User shall pay
Operator for said expenses within fifteen (15) days of receipt of the invoice and xxxx therefore.
User shall include with each payment any federal transportation excise tax due with respect to
such payment, and Operator shall be responsible for collecting, reporting and remitting such tax to
the U.S. Internal Revenue Service.
4. User will provide Operator with requests for flight time and proposed flight schedules as
far in advance of any given flight as possible. Requests for flight time and proposed flight
schedules shall be made in compliance with Operator’s scheduling procedures and aircraft use
policies. In addition to proposed schedules and flight times, User shall provide at least the
following information for each proposed flight at some time prior to scheduled departure as
required by the Operator or Operator’s flight crew.
| (a) | proposed departure point; | ||
| (b) | destination; | ||
| (c) | date and time of flight; | ||
| (d) | the number of anticipated passengers; | ||
| (e) | the nature and extent of unusual luggage and/or cargo to be carried; | ||
| (f) | the date and time of a return flight, if any; and | ||
| (g) | any other information concerning the proposed flight that may be pertinent or required by Operator or Operators flight crew. |
5. Operator shall pay all expenses related to the ownership and operation of the Aircraft and
shall employ, pay for and provide to User a qualified flight crew for each flight undertaken under
this Agreement.
2
6. Operator shall be solely responsible for securing maintenance, preventive maintenance and
required or otherwise necessary inspections on the Aircraft, and shall take such requirements into
account in scheduling the Aircraft. No period of maintenance, preventive maintenance or inspection
shall be delayed or postponed for the purpose of scheduling the Aircraft, unless said maintenance
or inspection can be safely conducted at a later time in compliance with all applicable laws and
regulations, and within the sound discretion of the pilot in command. The pilot in command shall
have final and complete authority to cancel any flight for any reason or condition which in his/her
judgment would compromise the safety of the flight.
7. In accordance with applicable Federal Aviation Regulations, the flight crew will exercise
all of its duties and responsibilities in regard to the safety of each flight conducted hereunder.
User specifically agrees that the pilot in command, in his/her sole discretion, may terminate any
flight, refuse to commence any flight, or take other action which in the considered judgment of the
pilot in command is necessitated by considerations of safety. The parties agree that Operator
shall not be liable for delay or failure to furnish the Aircraft and crew member 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. Operator
shall have sole and exclusive authority over the scheduling of the Aircraft.
8. Operator will use reasonable efforts to provide additional insurance coverage as User shall
request, provided, however: i) Operator is not required to provide such requested coverage, and
ii) that the cost of such additional insurance shall be borne by User as set forth in paragraph
2(d) hereof.
9. Each party hereto agrees to indemnify and hold harmless the other against all losses,
including costs, attorneys’ fees and expenses by reason of claims by third parties for injury to or
death of persons and loss of or damage to property arising out of or in any manner connected with
the performance of such party’s responsibilities under this Agreement or any breach by such party
of any covenant or warranty made herein. Operator and User agree that in the event either party
shall be liable to the other for any reason relating to this Agreement, that under no circumstances
shall the damaged party be entitled to any special or consequential damages, including but not
limited to damages for lost profits, incurred by the damaged party.
10. The Operator and User agree that Operator shall not be liable to User or any other person
for loss, injury, or damage occasioned by the delay or failure to furnish the Aircraft and crew
pursuant to this Agreement for any reason.
11. The risk of loss during the period when any Aircraft is operated on behalf of User under
this Agreement shall remain with Operator, and Operator will retain all rights and benefits with
respect to the proceeds payable under policies of hull insurance maintained by Operator that may be
payable as a result of any incident or occurrence while an Aircraft is being operated on behalf of
User under this Agreement. User shall be named as an additional insured on liability insurance
policies maintained by Operator on the Aircraft with respect to flights conducted pursuant to this
Agreement. The liability insurance policies on which User is named an additional
insured shall provide that as to User coverage shall not be invalidated or adversely affected
by any action or inaction, omission or misrepresentation by Operator or any other
3
person (other than User). Any hull insurance policies maintained by Operator on any Aircraft used by User under
this Agreement shall include a waiver of any rights of subrogation of the insurers against User.
12. A copy of this Agreement shall be carried in the Aircraft and available for review upon
the request of the FAA on all flights conducted pursuant to this Agreement.
13. User warrants that:
| (a) | He will use the Aircraft for and on account of his own business only, and will not use the Aircraft for the purposes of providing transportation for passengers or cargo in air commerce for compensation or hire; | ||
| (b) | During the term of this Agreement, he will abide by and conform to all such laws, governmental and airport orders, rules and regulations, as shall from time to time be in effect relating in any way to their operation and use of the Aircraft by a time sharing User; | ||
| (c) | He shall refrain from incurring any mechanics or other lien in connection with inspection, preventative maintenance, maintenance or storage of the Aircraft, whether permissible or impermissible under this Agreement, and he shall not attempt to convey, mortgage, assign, lease or any way alienate the Aircraft or create any kind of lien or security interest involving the Aircraft or do anything or take any action that might mature into such a lien. |
14. Neither this Agreement nor any party’s interest herein shall be assignable to any other
party. This Agreement shall inure to the benefit of and be binding upon the parties hereto, their
heirs, representatives and successors.
15. Nothing herein shall be construed to create a partnership, joint venture, franchise,
employer-employee relationship or to create any relationship of principal and agent.
16. This Agreement shall be governed by and construed in accordance with the laws of the State
of Missouri (excluding the conflicts of law rules thereof).
17. Neither Operator (nor its affiliates) makes, has made or shall be deemed to make or have
made, and Operator (for itself and its affiliates) hereby disclaims, any warranty or
representation, either express or implied, written or oral, with respect to any aircraft to be used
hereunder or any engine or component thereof including, without limitation, any warranty as to
design, compliance with specifications, quality of materials or workmanship, merchantability,
fitness for any purpose, use or operation, airworthiness, safety, patent, trademark or copyright
infringement or title.
[Remainder of Page Intentionally Left Blank]
4
IN WITNESS WHEREOF, the parties hereto have caused the signatures of their authorized
representatives to be affixed below on the day and year first above written. The persons signing
below warrant their authority to sign.
TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 (FORMERLY 91.54) OF THE FEDERAL AVIATION
REGULATIONS.
(A) CERNER CORPORATION (“OPERATOR”) HEREBY CERTIFIES THAT THE AIRCRAFT HAS BEEN
INSPECTED AND MAINTAINED WITHIN THE 12 MONTH PERIOD PRECEDING THE DATE OF THIS AGREEMENT IN
ACCORDANCE WITH THE PROVISIONS OF FAR PART 91 AND ALL APPLICABLE REQUIREMENTS FOR THE
MAINTENANCE AND INSPECTION THEREUNDER HAVE BEEN MET.
(B) CERNER CORPORATION (“OPERATOR”) AGREES, CERTIFIES AND KNOWINGLY ACKNOWLEDGES THAT
WHEN THE AIRCRAFT IS OPERATED UNDER THIS AGREEMENT, IT SHALL BE KNOWN AS, CONSIDERED, AND
SHALL IN FACT BE THE OPERATOR OF THE AIRCRAFT.
(C) THE PARTIES UNDERSTAND THAT AN EXPLANATION OF FACTORS AND PERTINENT FEDERAL
AVIATION REGULATIONS BEARING ON OPERATIONAL CONTROL CAN BE OBTAINED FROM THE LOCAL FLIGHT
STANDARDS DISTRICT OFFICE. OPERATOR FURTHER CERTIFIES THAT IT WILL SEND A TRUE COPY OF THIS
EXECUTED AGREEMENT TO: FEDERAL AVIATION ADMINISTRATION, AIRCRAFT REGISTRATION BRANCH, ATTN:
TECHNICAL SECTION, P. O. XXX 00000, XXXXXXXX XXXX, XXXXXXXX, 00000, WITHIN 24 HOURS OF ITS
EXECUTION, AS PROVIDED BY FAR 91.23(c)(1).
Operator:
|
/s/ Xxxx X. Xxxxxxxx | User: | /s/ Xxxxxxxx X. Xxxxx | |||||
By:
|
Cerner Corporation | By: | Xxxxxxxx X. Xxxxx | |||||
Name:
|
Xxxx X. Xxxxxxxx | |||||||
Title:
|
Chief Financial Officer |
A copy of this Agreement must be carried in the Aircraft while being operated hereunder.
5
