EXHIBIT 10.25
SUPPORT AND
MANAGEMENT AGREEMENT
THIS SUPPORT AND MANAGEMENT AGREEMENT, dated as of December 12, 2002 (as
amended or supplemented from time to time, this "Agreement") is by and between
WORLD AIRWAYS, INC., a Delaware corporation ("World"), and WORLD AIRWAYS PARTS
COMPANY, LLC, a Delaware limited liability company ("Parts").
BACKGROUND
A. Parts was formed for the purpose of facilitating the financing under a
certain credit facility for the benefit of World and Parts pursuant to the Loan
and Security Agreement, dated as of December 12, 2002 (as further amended or
supplemented from time to time, the "Loan Agreement"), among World, Parts, the
lenders party thereto and Foothill Capital Corporation, as agent ("FCC").
B. Parts desires to engage the services of World with respect to certain
support and operational matters as set forth in this Agreement, and World is
willing to provide such services, all on the terms set forth herein.
NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, World and Parts hereby agree as follows:
SECTION 1. Financial Statements. To the extent requested by Parts at any
time, or required by World, FCC, or any successor Lender (as defined in the Loan
Agreement), or required under applicable law, World, from time to time, hereby
agrees to timely prepare, or cause to be timely prepared, all such necessary
financial statements and financial reports. To the extent that any financial
statements or financial reports are required under the terms of the Loan
Agreement, calculation of the types and quantity of inventory owned by Parts as
of any date of measurement shall be determined by reference to World's Ultramain
inventory tracking system and the value of such inventory at any such date of
measurement shall be determined by reference to the appraisal report of the
Designated Appraiser (as defined in the Loan Agreement).
SECTION 2. Tax Returns. To the extent requested by Parts at any time, or
required by World, FCC, or any successor Lender, or required under applicable
law, World, from time to time, will prepare and file, or cause to be prepared
and filed, on or before the date required to be filed, all tax returns, reports,
certificates or documents required to be filed by or on behalf of Parts by any
federal, state or local jurisdiction or taxing authority.
SECTION 3. Managers and Officers. World will arrange for directors' and
officers' liability coverage for the managers and officers of Parts. World will
employ and pay all of the managers' and any officers' compensation, fees and
expenses.
SECTION 4. Other Services. World will provide such other support and
services, including without limitation, inventory tracking systems and services,
as are requested from time to time by Parts in order to facilitate the operation
of Parts and as is otherwise contemplated by the Loan Agreement and the other
documents related thereto. World agrees to take all reasonable steps required to
maintain Parts' identity as a separate legal entity from World and World
affiliates.
SECTION 5. Fees. In consideration for the services described herein, Parts
agrees to pay to World, the sum which represents World's reasonable estimate of
the additional overhead expenses incurred in order to provide the services
described herein. All such payments shall be subordinate to amounts due to FCC,
or any successor Lender, under the Loan Agreement.
SECTION 6. Bankruptcy. World hereby covenants and agrees that, prior to the
date that is ninety-one (91) days after the payment in full of all obligations
of Parts under and pursuant to the Loan Agreement and the related documents, it
will not institute against, or join any other person in instituting against,
Parts, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceedings under the laws of the United States or
any state of the United States.
SECTION 7. Expiration. This Agreement, unless extended, shall expire on
December 12, 2007. This Agreement shall be automatically extended for successive
one (1) year periods unless Parts or World has elected to terminate this
Agreement by providing prior written notice of termination; provided, however,
that unless and until all obligations of Parts shall have been finally and fully
paid and performed under the Loan Agreement and the related documents and the
commitment of FCC thereunder shall have been terminated, this Agreement may not
be terminated by Parts or World without the prior written consent of FCC.
SECTION 8. Miscellaneous. This Agreement may not be amended, waived or
modified except pursuant to a writing signed by the party to be charged. This
Agreement shall be binding upon and inure to the benefit of Parts and World and
their respective successors and assigns. This Agreement shall be governed by the
internal laws of the State of Georgia, without regard to any otherwise
applicable conflict of law principles. This Agreement may be executed by the
parties hereto in counterparts, each of which shall be deemed to be an original
but all of which shall constitute together but one and the same agreement.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers as of the date and year first above
written.
WORLD AIRWAYS, INC.
By: /s/ Xxxxxxxx X. Xxxxxx, Xx.
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Name: Xxxxxxxx X. Xxxxxx, Xx.
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Title: Chief Financial Officer
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WORLD AIRWAYS PARTS COMPANY, LLC
By: /s/ Xxxx X. Xxxxxxxxx
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Name: Xxxx X. Xxxxxxxxx
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Title: Manager
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