Exhibit 10.3

 

STATE OF FLORIDA

       )

PINELLAS COUNTY

       )

 

ASSIGNMENT, ASSUMPTION AND AMENDMENT OF LEASE

 

THIS ASSIGNMENT, ASSUMPTION AND AMENDMENT OF LEASE (this “Agreement”) is made as
of the 21st day of April, 2005, by and between Air International Incorporated, a
Delaware corporation (“Assignor”), AvAero Services, LLC, a Florida limited
liability company (“Assignee”), Mark Dessy, an individual (“Guarantor”), Joe
McAdams, an individual (“Guarantor”), and Pinellas County, Florida (the
“County”).

 

Recitals

 

WHEREAS, Avantair, Incorporated, a Nevada corporation (“Avantair”), and Assignor
have entered into that certain Asset Purchase Agreement dated as of September 2,
2004 (the “Purchase Contract”) pursuant to which Assignor agreed to transfer and
assign to Avantair, and Avantair agreed to assume from Assignor, all of
Assignor’s right, title and interest in, to and under that certain Lease
Agreement with Option to Renew dated July 8, 1986 (the “Lease”) between Assignor
and the County. All capitalized terms not otherwise defined herein shall have
the meanings set forth in the Purchase Contract.

 

WHEREAS, pursuant to that certain assignment agreement dated January 12, 2005,
Avantair assigned all if its rights and obligations under the Purchase Contract
to Assignee.

 

WHEREAS, in the interest of reducing noise impacts to residents who live within
close proximity to the St. Petersburg-Clearwater International Airport, the
Airport has established voluntary noise abatement and mitigation measures.
Assignee is requested to honor said noise abatement and mitigation measures.

 

Agreement

 

NOW, THEREFORE, for and in consideration of the Purchase Price and the
representations, warranties and covenants contained in the Purchase Contract,
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, Assignor, Assignee and the County here agree as follows:

 

1. Assignment and Assumption.

 

(a) Assignor does hereby, by these presents, convey, set over and assign to
Assignee all right, title and interest in to and under and to the Lease.

 

(b) Assignee hereby accepts the assignment by Assignor of all of its right,
title and interest in, to and under the Lease, and hereby assumes and agrees to
fully and faithfully observe, perform and fulfill all obligations and
liabilities of Assignor under the terms of the Lease beginning on the date
hereof.

--------------------------------------------------------------------------------

2. Consent and Release by County. The County hereby (i) acknowledges and
consents to the assignment of the Lease as set forth above, (b) releases and
forever discharges Assignor from any and all liabilities and obligations imposed
on Assignor under or in connection with the Lease, the leased premises and the
improvements constructed thereon arising after the date of the foregoing
assignment to Assignee, (c) releases and forever discharges Assignor and its
affiliates, including without limitation, Pemco Aeroplex, Inc., an Alabama
corporation formerly known as Hayes International Corporation, as the Guarantor
under the Lease, and (d) confirms that all payments due under the Lease to date
have been paid and that no default on the part of Assignor exists under the
Lease.

 

3. Amendment to Lease. The notice address for the Lessee under Section 34 of the
Lease is hereby deleted and replaced with the following:

 

    Assignee:    AvAero Services, LLC          15831 Fairchild Drive, Hangar 5B
         Clearwater, FL 33762          Attn: Kevin McKamey     Guarantor:   
Mark Dessy          8 Maverick Lane          Rolling Hills, CA 90274    
Gurantor:    Joe B. McAdams          158 Long Island Dr.          Hot Springs,
AK 71913

 

4. Environmental Matters. Assignee agrees to remove and properly dispose of, off
the Leased Premises, the Storage Tanks and their contents within thirty (30)
days of the date of this Agreement. Assignee agrees that all documents
associated with the removal and off-site disposal of the Storage Tanks and their
contents shall reflect only the Assignee’s name. Assignee unconditionally agrees
to indemnify, defend, and hold harmless Assignor and County from and against all
claims and losses directly or indirectly resulting from the removal and disposal
of said Storage Tanks, including any spills or releases that might occur during
said removal, transportation, and disposal. Assignee further agrees to provide
Assignor and County written documentation reflecting this removal and disposal
within ten (10) business days of completion. Notwithstanding the provisions of
Sections 2 and 4 herein, nothing under Sections 2 or 4 shall be construed as a
release by the County of any party hereto of any environmental liability under
state and/or federal laws.

 

5. Guarantee. The obligations of the Assignee, as Lessee under the Lease, for
payment of rentals pursuant to paragraphs 3 and 15 of the Lease are hereby
unconditionally guaranteed by the Guarantor. Payment of said rental amounts
shall be due and payable by Guarantor to the County, as Lessor under the Lease,
upon receipt of notice from the County that Assignee has failed to make said
payments in accordance with the terms of the Lease.

 

2

--------------------------------------------------------------------------------

6. Miscellaneous.

 

  (a) This Agreement shall inure to the benefit of Assignor, Guarantor, County
and Assignee and their respective successors and assigns; provided however,
notwithstanding the forgoing, the provisions of Section 4 of this Agreement
shall remain personal to Assignor, County and Assignee and shall not be
transferable or assignable to third parties, subsequent parties to the Lease,
subsequent owners of any interest in any property that is the subject of the
Lease or any other potential successors. This Agreement may be executed in
multiple original counterparts, each which shall be deemed an original, but all
of which taken together shall constitute one and the same instrument.

 

  (b) Unless expressly set forth herein to the contrary, this Agreement is
subject to and is to be construed according to the terms of the Purchase
Contract, including, without limitation, Assignor Seller’s disclaimer of
warranties set forth therein.

 

7. Noise Abatement Procedures: Lessee/Airline acknowledges that the St.
Petersburg-Clearwater International Airport have set in place a number of
voluntary noise mitigation measures that are outlined on the attached Exhibit
“    ” (Voluntary Noise Abatement and Mitigation Program) that maybe amended
from time to time. The Lessor/Airport requests Lessee/Airline to make its best
faith effort on a purely voluntary basis, to become acquainted with, and to
abide by these noise abatement and mitigation measures.

 

All other provisions of the Lease Agreement with Options to Renew dated July 8,
1986 between Air International Incorporated shall remain in full force and
effect.

 

[Remainder of page intentionally left blank]

 

3

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, Assignor, Assignee, Guarantor and County have executed this
Agreement as of the date first set forth above.

 

    “Assignor”     Air International Incorporated,     a Delaware corporation  
  By:  

/s/ John R. Lee

--------------------------------------------------------------------------------

    Name:   John R. Lee     Its:   CFO     “ Assignee”     AvAero Services, LLC
    a Florida limited liability company     By:  

/s/ Kevin V. McKamey

--------------------------------------------------------------------------------

    Name:   Kevin V. McKamey     Its:   Managing Member     “County”    
Pinellas County, Florida, by and through its Board of County Commissioners    
By:  

/s/ John Monnoni

--------------------------------------------------------------------------------

    Name:   John Monnoni     Its:   Chairman Attest:        

 

 

--------------------------------------------------------------------------------

        Ken Burke, Clerk         (seal)        

 

(The remainder of this page is left intentionally blank.)

 

4

--------------------------------------------------------------------------------

“Guarantor”

/s/ Mark Dessy

--------------------------------------------------------------------------------

Mark Dessy

“Guarantor”

/s/ Joe McAdams

--------------------------------------------------------------------------------

Joe McAdams

 

Approved as to Form:   Approved as to Content:

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

Senior Assistant County Attorney   Airport Director

 

5