Exhibit 10.31
AIRCRAFT TIME SHARING AGREEMENT
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THIS AIRCRAFT TIME SHARING AGREEMENT is made and entered into this day
of March 31, 2002, by and between STEELCASE, INC., a corporation organized and
existing under the laws of the State of Michigan (TIMESHAROR), and XXXXXX X.
XXXXX, an individual of Grand Rapids, Michigan.
WITNESSETH:
WHEREAS, TIMESHAROR is the owner and operator of one FALCON 900 EX
aircraft bearing Federal Aviation Administration (FAA) Registration No. N377SC
and Manufacturer's Serial No. 066 (the Aircraft); and
WHEREAS, TIMESHAREE desires use of the Aircraft; and
WHEREAS, TIMESHAROR desires to make the Aircraft available to
TIMESHAREE for the above operations on a time sharing basis in accordance with `
91.501 of the Federal Aviation Regulations (FARs).
NOW THEREFORE, in consideration of the mutual covenants herein set
forth, the parties agree as follows:
1. Provision of Aircraft. TIMESHAROR agrees to provide the Aircraft
to TIMESHAREE on a time sharing basis in accordance with the provisions of
Sections 91.501(b)(6), 91.501(c)(1) and 91.501(d) of the FARs for the period
commencing upon execution of this Agreement and continuing until terminated
pursuant to Paragraph 15 below or by mutual agreement of the parties.
2. Reimbursement of Expenses. For each flight conducted under this
Agreement, TIMESHAREE shall pay TIMESHAROR the sum of the expenses of operating
such flight to the extent prescribed by FAR 91.501(d) i.e. the sum of the
expenses set forth in subparagraphs (a)-(j) below:
(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;
(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; and
(j) an additional charge equal to one hundred percent (100%) of the
expenses listed in subparagraphs (a) above.
3. Invoicing and Payment. All payments to be made to TIMESHAROR by
TIMESHAROR hereunder shall be paid in the manner set forth in this Paragraph 3.
TIMESHAROR will pay to suppliers, employees, contractors and government entities
all expenses related to the operations of the Aircraft hereunder in the ordinary
course. As to each flight operated hereunder, TIMESHAROR shall provide to
TIMESHAREE an invoice for the charges specified in Paragraph 2 of this Agreement
(plus domestic or international air transportation excise taxes, as applicable,
imposed by the Internal Revenue Code and collected by TIMESHAROR), such invoice
to be issued within thirty (30) days after the completion of each such flight.
TIMESHAREE shall pay TIMESHAROR the full amount of such invoice within thirty
(30) days of the date of the invoice. In the event TIMESHAROR has not received a
supplier invoice for reimbursable charges relating to such flight prior to such
invoicing, TIMESHAROR shall issue a supplemental invoice for such charges to
TIMESHAREE within thirty (30) days of the date of receipt of the supplier
invoice and TIMESHAREE shall pay such supplemental invoice amount within thirty
(30) days of the date thereof. All such invoices shall separately itemize the
expenses in items (a) through (j) for each flight included in that invoice.
Delinquent payments to TIMESHAROR by TIMESHAREE hereunder shall bear interest at
the rate of ten percent (10%) per annum from the due date until the date of
payment. TIMESHAREE shall further pay all costs incurred by TIMESHAROR in
collecting any amounts due from TIMESHAREE pursuant to the provisions of this
Paragraph 3 after delinquency, including court costs and reasonably attorneys'
fees.
4. Flight Requests. TIMESHAREE will provide TIMESHAROR with flight
requests and proposed flight schedules as far in advance as possible, and in any
case at least twenty-four (24) hours in advance of TIMESHAREE's desired
departure. Flight requests shall be in a form, whether oral or written, mutually
convenient to and agreed upon by the parties. In addition to proposed schedules
and departure times, TIMESHAREE shall provide at least the following information
for each proposed flight reasonably in advance of the desired departure time as
required by TIMESHAROR or its flight crew.
(a) departure point;
(b) destination;
(c) date and time of flight;
(d) number and identity of anticipated passengers;
(e) nature and extent of luggage and/or cargo to be carried;
(f) date and time of return flight, if any, and
(g) any other information concerning the proposed flight that may be
pertinent to or reasonably required by TIMESHAROR or its flight
crew.
5. Aircraft Scheduling. TIMESHAROR shall have final authority over
all scheduling of the Aircraft, provided, however, that TIMESHAROR will use
reasonable efforts to accommodate TIMESHAREE's requests.
6. Aircraft Maintenance. TIMESHAROR shall be solely responsible for
securing scheduled and unscheduled maintenance, preventive maintenance and
required or otherwise necessary inspections of the Aircraft and shall take such
requirements into account in scheduling the operation of the Aircraft.
Performance of maintenance, preventive maintenance or inspection shall
not be delayed or postponed due to any scheduled operation of the Aircraft
unless such maintenance or inspection can safely be conducted at a later time in
compliance with the sound discretion of the pilot-in-command.
7. Flight Crew. TIMESHAROR shall employ, pay for and provide a
qualified flight crew for all flight operations under this Agreement.
8. Operational Authority and Control. TIMESHAROR shall be
responsible for the physical and technical operation of the Aircraft and the
safe performance of all flights and shall retain full authority and control,
including exclusive operational control, and possession of the Aircraft at all
times during the term of this Agreement. In accordance with applicable FARs, the
qualified flight crew provided by TIMESHAROR will exercise all required and/or
appropriate duties and responsibilities in regard to the safety of each slight
conducted hereunder. The pilot-in-command shall have absolute discretion in all
matters concerning the preparation of the Aircraft for flight and the flight
itself, the load carried and its distribution, the decision whether or not a
flight shall be undertaken, the route to be flown, the place where landings
shall be made and all other matters relating to operation of the Aircraft.
TIMESHAREE specifically agrees that the flight crew shall have final and
complete authority to delay or cancel any flight for any reason or condition
which, in sole judgment of the pilot-in-command, could compromise the safety of
the flight and to take any other action which, in the sole judgment of the
pilot-in-command, is necessitated by considerations of safety. No such action of
the pilot-in-command shall create or support any liability to TIMESHAREE or any
other person for loss, injury, damages or delay. The parties further agree that
TIMESHAROR shall not be liable for delay or failure to furnish the Aircraft and
crew pursuant to this Agreement which such failure is caused by government
regulation or authority, mechanical difficulty or breakdown, war, civil
commotion, strikes or labor disputes, weather conditions, acts of God or other
circumstances beyond TIMESHAROR's reasonable control.
9. Insurance.
(a) TIMESHAROR will maintain or cause to be maintained in full force
and effect, throughout the term of this Agreement, aircraft liability insurance
in respect to the Aircraft, naming TIMESHAREE as an additional insured, in an
amount at least equal to $6,000,000 combined single limit for bodily injury to
or death of persons (including passengers) and property damage liability. Such
insurance shall include: (i) provision for thirty (30) days' prior written
notice to TIMESHAREE before any lapse, alteration, termination or cancellation
of insurance shall be effective as to TIMESHAREE; (ii) provisions whereby the
insurer(s) irrevocably and unconditionally waive all rights of subrogation which
they may have or acquire against TIMESHAREE; and (iii) a cross-liability clause
to the effect that such insurance, except for the limits of liability, shall
operate to give TIMESHAREE the same protection as if there were a separate
policy issued to him.
(b) TIMESHAROR shall use its reasonable best efforts to procure such
additional insurance coverage as TIMESHAREE may reasonably request naming
TIMESHAREE as an insured; provided, that the costs of such additional insurance
shall be borne by TIMESHAREE pursuant to Paragraph 2(d) hereof.
10. Warranties. TIMESHAREE warrants that:
(a) he will use the Aircraft under this Agreement for his personal or
business use, including the carriage of his guests and will not use the Aircraft
for purposes of providing transportation of passengers or cargo in air commerce
for compensation or hire as an air carrier or commercial operator;
(b) he will not permit any lien, security interest or other charge or
encumbrance to attach against the Aircraft as a result of his actions or
inactions and shall not convey, mortgage, assign, lease or in any way alienate
the Aircraft or TIMESHAROR's rights hereunder; and
(c) during the terms of this Agreement, he will abide by and conform
to all laws, orders, rules and regulations as are, from time to time, in effect
and which relate in any way to the operation or use of the Aircraft under a time
sharing arrangement.
11. Base of Operations. For purposes of this Agreement, the base of
operation of the Aircraft is Grand Rapids, Xxxxxx X. Xxxx International Airport;
provided, that such base may be changed permanently upon notice from TIMESHAROR
to TIMESHAREE.
12. Notices and Communications. All notices, requests, demands and
other communications required or desired to be given hereunder shall be in
writing (except as permitted pursuant to Paragraph 4) and shall be deemed to be
given: (i) if personally delivered, upon such delivery; (ii) if mailed by
certified mail, return receipt requested, postage pre-paid, addressed as follows
(to the extent applicable for mailing), upon the earlier to occur of actual
receipt, refusal to accept receipt or three (e) days after such mailing; (iii)
if sent by regularly scheduled overnight delivery carrier with delivery fees
either prepaid or an arrangement, satisfactory with such carrier, made for the
payment of such fees, addressed (to the extent applicable for overnight
delivery) as follows, upon the earlier to occur of actual receipt or the next
"Business Day" (as hereafter defined) after being sent by such delivery; or (iv)
upon actual receipt when sent by fax, mailgram, telegram or telex:
If to TIMESHAROR:
STEELCASE INC. CORPORATE AVIATION
0000 00xx Xx.
Xxxxx Xxxxxx, XX 00000
Copy: Legal Services
X.X. Xxx 0000
Xxxxx Xxxxxx, XX 00000
If to TIMESHAREE:
Xxxxxx X. Xxxxx
7 Rue Xxxxxx Xxxxx
Xxxxxxxxxx, Xxxxxx 00000
Notices given by other means shall be deemed to be given only upon actual
receipt. Addresses may be changed by written notice given as provided herein and
signed by the party giving the notice.
13. FurtherActs. TIMESHAROR and TIMESHAREE shall from time to time
perform such other and further acts and execute such other and further
instruments as may be required by law or may be reasonably necessary to: (i)
carry out the intent and purpose of this Agreement; and (ii) establish, maintain
and protect the respective rights and remedies of the other party.
14. Successors and Assigns. Neither this Agreement nor either party's
interest herein shall be assignable by either party without the written consent
of the other party thereto. This Agreement shall inure to the benefit of and be
binding upon the parties hereto, their heirs, representatives and successors.
15. Termination. Either party may terminate this Agreement for any
reason upon written notice to the other, such termination to become effective
ten (10) days from the date of the notice; provided that this Agreement may be
terminated on such shorter notice as may be required to comply with applicable
laws, regulations or insurance requirements.
16. Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Michigan without regard to any
conflicts of law provisions or principles to the contrary. The parties hereby
consent and agree to the nonexclusive jurisdiction and to the venue of any state
or federal court for any geographic area in any proceedings hereunder and hereby
waive any objection to any such proceedings based on improper venue or forum non
conveniens. The parties hereby further consent and agree to the exercise of such
personal jurisdiction over them by such courts with respect to any such
proceedings, waive any objection to the assertion or exercise of such
jurisdiction and consent to process being served in any such proceedings in the
manner provided for the giving of notices in Paragraph 12.
17. Severability. If any provision of this Agreement is held to be
illegal, invalid or unenforceable, the legality, validity and enforceability of
the remaining provisions shall not be affected or impaired.
18. Amendment or Modification. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and its
not intended to confer upon any person or entity any rights or remedies
hereunder which are not expressly granted herein. This Agreement may be amended
or supplemented only by a writing signed by the party against whom such
amendment or supplement is sought to be enforced.
19. TRUTH IN LEASING STATEMENT PURSUANT TO SECTION 91.23 OF THE
FEDERAL AVIATION REGULATIONS.
(a) TIMESHAROR 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 PART 91 OF THE FEDERAL AVIATION REGULATIONS
AND THAT ALL APPLICABLE REQUIREMENTS FOR THE AIRCRAFT'S MAINTENANCE AND
INSPECTION THEREUNDER HAVE BEEN MET AND ARE VALID FOR THE OPERATIONS TO BE
CONDUCTED UNDER THIS AGREEMENT.
(b) TIMESHAROR, WHOSE ADDRESS APPEARS IN PARAGRAPH 12 ABOVE AND WHOSE
AUTHORIZED SIGNATURE APPEARS BELOW, AGREES, CERTIFIES AND ACKNOWLEDGES THAT
WHENEVER THE AIRCRAFT IS OPERATED UNDER THIS AGREEMENT, TIMESHAROR SHALL BE
KNOWN AS, CONSIDERED AND SHALL IN FACT BE THE OPERATOR OF THE AIRCRAFT AND THAT
TIMESHAROR UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE
FEDERAL AVIATION REGULATIONS.
TIMESHAROR
By: /s/ Xxxxx Xxxxx
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Name: Xxxxx Xxxxx
Title: Director of Corporate Aviation
(c) THE PARTIES UNDERSTAND THAT AN EXPLANATION OF FACTORS AND
PERTINENT FEDERAL AVIATION REGULATIONS BEARING ON OPERATIONAL CONTROL CAN BE
OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE. TIMESHAROR
FURTHER CERTIFIES THAT IT WILL SEND, OR CAUSE TO BE SENT, A TRUE COPY OF THIS
AGREEMENT TO, FEDERAL AVIATION ADMINISTRATION, AIRCRAFT REGISTRATIONS BRANCH,
ATTN. TECHNICAL SECTION, X.X. XXX 00000, XXXXXXXX XXXX, XXXXXXXX 00000, WITHIN
24 HOURS AFTER ITS EXECUTION, AS REQUIRED BY SECTION 91.23(c)(1) OF THE FEDERAL
AVIATION REGULATIONS.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed on the date first above written. The persons signing below
warrant their authority to sign.
TIMESHAROR: TIMESHAREE:
STEELCASE, INC.
By: /s/ Xxxxx Xxxxx By: /s/ X. X. Xxxxx
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Name: XXXXX XXXXX Name: XXXXXX X. XXXXX
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Title: Director of Aviation Title: President, Steelcase Intl
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