1
EXHIBIT 10.25
TERMINATION OF AIRCRAFT LEASE AGREEMENT
This Termination of Aircraft Lease Agreement ("Termination") is
entered into as of June 30, 2000 ("Termination Date"), by and between JHS
Leasing of Tampa, Inc. ("Lessor") and Xxxxx Enterprises, Incorporated
("Lessee").
WITNESSETH:
WHEREAS, Lessor and Lessee entered into an Aircraft Lease Agreement
dated December 1, 1995 (the "Lease") relating to one 1969 model Gulfstream II
aircraft bearing FAA registration number N718JS (formerly N165U) and
manufacturer's serial number 66, including two (2) Rolls Royce Spoy engines
model MK511-8 (each of which has 750 or more rated takeoff horsepower or its
equivalent), bearing serial numbers 8651 and 8634 (collectively, the
"Aircraft"); and
WHEREAS, Lessor and Lessee mutually desire to terminate the Lease as
well as any and all other agreements entered into between the parties with
respect to the Aircraft (collectively, the "Aircraft Agreements"), except as
specifically described herein.
NOW, THEREFORE, in consideration of the premises, promises and
covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee
hereby agree as follows:
1. Termination. The Aircraft Agreements are hereby terminated as of the
date hereof and the parties shall have no further rights or
obligations thereunder or arising in connection therewith except as
specifically described herein.
2. Termination Fee. Lessee shall pay Lessor the sum of $2,625,269 on the
Termination Date, and except as set forth below, no other amounts
shall be due to Lessor from Lessee pursuant to the Lease, and Lessee's
obligation to pay rent to Lessor shall be terminated as of the
Termination Date.
3. Security Deposit. Lessor shall retain the security deposit of
$96,294.58.
4. Return Conditions. Lessee shall pay Lessor the sum of $878,000.00 on
the Termination Date as a partial payment towards the cost of
complying with the testing, inspection, overhaul and repair
requirements of Paragraph 10 of the Lease ("Return Conditions").
Lessee thereunder is responsible to cover certain additional costs
associated with the return of the Aircraft in an airworthy condition,
good repair, and working condition capable of performing its
originally intended use. Lessor understands the Lessee has engaged a
third party (Gulfstream Aircraft) to perform certain tests to
determine such additional costs of the Return Conditions and Lessee
agrees to pay such third party directly for such tests, any cost of
such required repairs and the transport costs (roundtrip) associated
with the tests.
5. Aircraft Expenses. Effective as of the Termination Date, Lessor shall
assume and pay all personnel and operating costs for the Aircraft,
including the monthly hangar rental and insurance costs.
6. Operational Control. Lessor shall be responsible for operational
control of the Aircraft and risk of loss (including responsibility for
casualty and liability insurance) as of the Termination Date, and so
acknowledges by its signature hereon.
7. Binding Effect. This Termination shall be binding upon and inure to
the benefit of Lessor and Lessee and their respective successors and
assigns.
8. Further Assurances. The parties hereby agree to execute and deliver
any and all termination statements, releases and other documents as
may be necessary or appropriate to carry out the purpose and intent of
this Termination.
Page 1 of 2
20
2
9. Entire Agreement. This Termination sets forth the entire understanding
of the parties in connection with the subject matter hereof. There are
no agreements between Lessor and Lessee relating to the Aircraft other
than those set forth herein. Neither party hereto has relied upon any
understanding, representation or warranty not set forth herein, either
oral or written, as an inducement to enter into this Termination.
10. Counterparts; Fax Signatures. This Termination may be executed in
counterparts, each of which shall be deemed a part of an original and
all of which together shall constitute one agreement. Facsimile
signatures shall be binding upon the parties hereto with the same
force and effect as original signatures.
IN WITNESS WHEREOF, Lessor and Lessee have executed and delivered this
instrument as of the date, month and year first above written.
JHS Leasing of Tampa, Inc. (Lessor) Xxxxx Enterprises, Incorporated (Lessee)
By: By:
-------------------------------- -------------------------------------
Xxxx X. Xxxxx W. Xxxxxxx Xxxxxxx
Title: Director & President Title: Vice President and CFO
Page 2 of 2
21
