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Jack Henry & Associates Inc. – ‘10-K’ for 6/30/23 – ‘EX-10.77’

On:  Thursday, 8/24/23, at 4:24pm ET   ·   For:  6/30/23   ·   Accession #:  779152-23-62   ·   File #:  0-14112

Previous ‘10-K’:  ‘10-K’ on 8/25/22 for 6/30/22   ·   Latest ‘10-K’:  This Filing   ·   14 References:   

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  As Of               Filer                 Filing    For·On·As Docs:Size

 8/24/23  Jack Henry & Associates Inc.      10-K        6/30/23   87:8M

Annual Report   —   Form 10-K

Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        10-K - Jkhy 2023.06.30                              HTML   1.38M 
 2: EX-4.1      EX-4.1 - Jkhy 2023.06.30                            HTML     35K 
 3: EX-10.76    EX-10.76 - Jha Psu Award Agreement                  HTML     98K 
 4: EX-10.77    EX-10.77 - Form of Aircraft Time Sharing Agreement  HTML     44K 
 5: EX-10.78    EX-10.78 - Jha 2006 Espp - Amended and Restated     HTML     82K 
                8.18.2023                                                        
 6: EX-21.1     EX-21.1 - Jkhy 2023.06.30                           HTML     23K 
 7: EX-23.1     EX-23.1 - Jkhy 2023.06.30                           HTML     22K 
 8: EX-31.1     EX-31.1 - Jkhy 2023.06.30                           HTML     26K 
 9: EX-31.2     EX-31.2 - Jkhy 2023.06.30                           HTML     26K 
10: EX-32.1     EX-32.1 - Jkhy 2023.06.30                           HTML     23K 
11: EX-32.2     Ex-32.1 - Jkhy 2023.06.30                           HTML     23K 
17: R1          Cover Page                                          HTML     94K 
18: R2          Consolidated Statements of Income                   HTML     95K 
19: R3          Consolidated Balance Sheets                         HTML    168K 
20: R4          Consolidated Statements of Changes in               HTML     90K 
                Stockholders' Equity                                             
21: R5          Consolidated Statements of Cash Flows               HTML    110K 
22: R6          Nature of Operations and Summary of Significant     HTML     65K 
                Accounting Policies (Text Block)                                 
23: R7          Revenue and Deferred Costs                          HTML     58K 
24: R8          Fair Value Measures and Disclosures                 HTML     48K 
25: R9          Leases                                              HTML     39K 
26: R10         Property and Equipment (Text Block)                 HTML     47K 
27: R11         Other Assets (Text Block)                           HTML     74K 
28: R12         Debt (Text Block)                                   HTML     35K 
29: R13         Income Taxes (Text Block)                           HTML     88K 
30: R14         Industry and Supplier Concentrations (Text Block)   HTML     25K 
31: R15         Stock Based Compensation (Text Block)               HTML     71K 
32: R16         Earnings Per Share (Text Block)                     HTML     39K 
33: R17         Employee Benefit Plans (Text Block)                 HTML     27K 
34: R18         Business Acquisitions (Text Block)                  HTML     40K 
35: R19         Reportable Segment Information (Text Block)         HTML    110K 
36: R20         Subsequent Events (Text Block)                      HTML     26K 
37: R21         Nature of Operations and Summary of Significant     HTML     73K 
                Accounting Policies (Policies)                                   
38: R22         Fair Value Measures and Disclosures (Policies)      HTML     26K 
39: R23         Leases (Policies)                                   HTML     28K 
40: R24         Organization, Consolidation and Presentation of     HTML     33K 
                Financial Statements (Tables)                                    
41: R25         Revenue from Contract with Customer (Tables)        HTML     47K 
42: R26         Fair Value Measures and Disclosures (Tables)        HTML     45K 
43: R27         Leases (Tables)                                     HTML     32K 
44: R28         Property and Equipment (Tables)                     HTML     45K 
45: R29         Other Assets (Tables)                               HTML     79K 
46: R30         Income Taxes Income Taxes (Tables)                  HTML     89K 
47: R31         Stock Based Compensation (Tables)                   HTML     63K 
48: R32         Earnings Per Share (Tables)                         HTML     38K 
49: R33         Reportable Segment Information (Tables)             HTML    102K 
50: R34         Nature of Operations and Summary of Significant     HTML     24K 
                Accounting Policies (Details)                                    
51: R35         Nature of Operations and Summary of Significant     HTML     35K 
                Accounting Policies Allowance for Credit Losses                  
                (Details)                                                        
52: R36         Nature of Operations and Summary of Significant     HTML     30K 
                Accounting Policies Purchase of Investment                       
                (Details)                                                        
53: R37         Reportable Segment Information (Details)            HTML     24K 
54: R38         Treasury Stock (Details)                            HTML     33K 
55: R39         Disaggregation of Revenue (Details)                 HTML     41K 
56: R40         Revenue and Deferred Costs Contract Balances        HTML     35K 
                (Details)                                                        
57: R41         Revenue and Deferred Costs Narrative (Details)      HTML     38K 
58: R42         Revenue and Deferred Costs Contract Costs           HTML     26K 
                (Details)                                                        
59: R43         Fair Value Measures and Disclosures (Details)       HTML     48K 
60: R44         Leases (Details)                                    HTML     68K 
61: R45         Leases Lease Maturity (Details)                     HTML     41K 
62: R46         Property and Equipment (Details)                    HTML     69K 
63: R47         Other Assets Goodwill (Details)                     HTML     39K 
64: R48         Other Assets Other Intangible Assets (Details)      HTML     61K 
65: R49         Other Assets Future Amortization Expense (Details)  HTML     41K 
66: R50         Debt Narrative (Details)                            HTML     74K 
67: R51         Provision For Income Taxes (Details)                HTML     37K 
68: R52         Deferred Tax Liability (Details)                    HTML     54K 
69: R53         Effective Tax Rate Reconciliation (Details)         HTML     35K 
70: R54         Income Taxes Narrative (Details)                    HTML     50K 
71: R55         Unrecognized Tax Benefits (Details)                 HTML     34K 
72: R56         Industry and Supplier Concentrations Concentration  HTML     28K 
                Risk (Details)                                                   
73: R57         Stock Based Compensation Narrative (Details)        HTML     93K 
74: R58         Restricted Stock Unit Awards (Details)              HTML     60K 
75: R59         RSU Measurement Date Assumptions (Details)          HTML     41K 
76: R60         Earnings Per Share (Details)                        HTML     60K 
77: R61         Employee Benefits Plans Employee Stock Purchase     HTML     31K 
                Plan (Details)                                                   
78: R62         Employee Benefits Plans 401(K) (Details)            HTML     34K 
79: R63         Business Acquisitions (Details)                     HTML     88K 
80: R64         Reportable Segment Information Narrative (Details)  HTML     71K 
81: R65         Reportable Segment Information Reconciliation of    HTML     85K 
                Operating Profit by Segment to Consolidated                      
                (Details)                                                        
82: R66         Subsequent Events (Details)                         HTML     40K 
85: XML         IDEA XML File -- Filing Summary                      XML    146K 
83: XML         XBRL Instance -- jkhy-20230630_htm                   XML   1.67M 
84: EXCEL       IDEA Workbook of Financial Report Info              XLSX    148K 
13: EX-101.CAL  XBRL Calculations -- jkhy-20230630_cal               XML    171K 
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87: ZIP         XBRL Zipped Folder -- 0000779152-23-000062-xbrl      Zip    505K 


‘EX-10.77’   —   EX-10.77 – Form of Aircraft Time Sharing Agreement


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FORM OF AIRCRAFT TIME SHARING AGREEMENT

This Aircraft Time Sharing Agreement (“Agreement”) is effective as of the __ day of ____ 20__ (“Effective Date”), by and between Jack Henry and Associates, Inc. (“Lessor”), and _____________ (“Lessee”);

RECITALS

WHEREAS, Lessor is the registered owner (“Owner”) of the aircraft (individually and collectively, the “Aircraft) listed on Schedule 1 attached hereto, each currently registered with the Federal Aviation Administration (“FAA”);

WHEREAS, Lessor has obtained a fully qualified flight crew to operate the Aircraft;

WHEREAS, Lessor desires to lease to Lessee said Aircraft and to provide a fully qualified flight crew for all operations on a periodic, non-exclusive time sharing basis, as defined in Section 91.501(c) of the Federal Aviation Regulations (“FARs”); and

WHEREAS, the use of the Aircraft by Lessee shall at all times be pursuant to and in full compliance with the requirements of FAR Sections 91.501 (b)(6), 91.501 (c)(1) and 91.501 (d);

NOW, THEREFORE, in consideration of the mutual promises and considerations contained in this Agreement, the parties agree as follows:

1. Lessor agrees and has the right to lease the Aircraft to Lessee on a periodic, non-exclusive basis, and to provide a fully qualified flight crew for all operations, pursuant and subject to the provisions of FARs Section 91.501 (c)(1) and the terms to this Agreement. With respect to each flight undertaken under this Agreement, Lessor shall have and retain operational control of the Aircraft as provided in the applicable FAR (as defined in FAR Section 1.1 “operational control,” with respect to a flight, means the exercise of authority over initiating, conducting, or terminating a flight.); and, for federal tax purposes, shall have and retain “possession, command and control” of the Aircraft. This Agreement shall commence on the Effective Date and continue for a period of one (1) year after the Effective Date (the “Term”). Thereafter, the Term of this Agreement will be automatically renewed on an annual basis, unless sooner terminated by either party at any time upon ten (10) days prior written notice to the other party.

2. Lessee shall pay Lessor for each flight conducted under this Agreement in an amount determined by Lessor, which in no event shall exceed the following actual expenses of each specific flight as authorized by FAR Section 91.501 (d);

(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 100% of the expenses listed in subparagraph (a) of this paragraph.

3. Lessor will pay all expenses related to each flight during the operation of the Aircraft when incurred, and will bill Lessee on a monthly basis as soon as practicable after the last day of each calendar month for the amount payable in accordance with paragraph 2 above for all flights for the account of Lessee during the preceding month. Lessee shall pay Lessor for all flights for the account of Lessee pursuant to this Agreement within thirty (30) days of receipt of the invoice therefor. Without limiting the foregoing, amounts payable by Lessee to Lessor under this Agreement may include any federal excise tax that may be imposed under Internal Revenue Code Section 4261 or any similar excise taxes, if any.

4. Lessee shall provide Lessor with requests for flight time and proposed flight schedules as far in advance of any given flight as possible, and in no event less than twenty-four (24) hours in advance of Lessee's planned departure, unless Lessor otherwise agrees. Requests for flight time shall be in a form, whether written or oral, mutually convenient to, and agreed upon by the parties. In addition to the proposed schedules and flight times, Lessee shall provide at least the following information for each proposed flight at some time prior to scheduled departure as required by the Lessor or Lessor's flight crew:

(a)proposed departure point;
(b)destinations;
(c)date and time of flight;
(d)the number of anticipated passengers;
(e)the identity of each anticipated passenger;
(f)the nature and extent of luggage and/or cargo to be carried;
(g)the date and time of return flight, if any; and
(h)any other information concerning the proposed flight that may be pertinent or required by Lessor or Lessor's flight crew.
5. Lessor shall have sole and exclusive authority over the scheduling of the Aircraft, including any limitations on the number of passengers on any flight, provided however, that, Lessor will use reasonable efforts to accommodate Lessee's needs. Lessee acknowledges that use of the Aircraft is on a first-come, first-serve basis and Lessor has no responsibility to make the Aircraft available.

6. As between Lessor and Lessee, Lessor 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, preventative 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 judgment would compromise the safety of the flight.

7. In accordance with applicable FARs, the qualified flight crew provided by Lessor will exercise all of its duties and responsibilities concerning the safety of each flight conducted hereunder. Lessee specifically agrees that the flight crew, in its 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. No such action of the pilot in command shall create or support any liability for loss, injury, damage or delay to Lessee or any other person. The parties further agree that Lessor shall not be liable for delay or failure to furnish the Aircraft and crew 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 or any other event or circumstance beyond the reasonable control of Lessor.

8. (a) At all times during the term of this Agreement, as between Lessor and Lessee, Lessor shall cause to be carried and maintained, at Lessor's cost and expense, physical damage insurance with respect to the Aircraft and third party aircraft liability insurance in such amounts and on such terms and conditions as Lessor shall determine in its sole discretion, Lessor shall also bear the cost of paying any deductible amount on any policy of insurance in the event of a claim or loss.

(b) Any policies of insurance carried in accordance with this Agreement: (i) shall name Lessee as an additional insured and (ii) shall contain a waiver by the underwriter thereof of any right of subrogation against Lessee. Each liability policy shall be primary without right of contribution from any other insurance, which is carried by Lessee or Lessor and shall expressly provide that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured.

9. (a) LESSEE AGREES THAT THE PROCEEDS OF ANY INSURANCE (“INSURANCE PROCEEDS”) WILL BE LESSEE’S SOLE RECOURSE AGAINST LESSOR, ITS AFFILIATES, ITS AND THEIR RESPECTIVE PRESENT OR FORMER DIRECTORS, OFFICERS, EMPLOYEES, INSURERS AND AGENTS, AND THE SUCCESSORS AND ASSIGNS THEREOF, OR LESSOR’S OTHER LESSEES (COLLECTIVELY, THE “LESSOR PARTIES”) WITH RESPECT TO ANY CLAIMS, ACTIONS, SUITS, PROCEDURES, COSTS, EXPENSES, DAMAGES AND LIABILITIES (COLLECTIVELY, “CLAIMS”) THAT LESSEE, ITS EMPLOYEES, AGENTS, GUESTS OR INVITEES (AND THE LAWFUL SUCCESSOR AND ASSIGNS THEREOF) (COLLECTIVELY, THE “LESSEE PARTIES”), MAY HAVE UNDER THIS AGREEMENT OF WHATSOEVER NATURE, WHETHER SEEN OR UNFORESEEN, EXCEPT IN THE EVENT OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT BY LESSOR.
(b) IN NO EVENT SHALL THE LESSOR PARTIES BE LIABLE TO THE LESSEE PARTIES FOR ANY CLAIMS FOR INDIRECT, CONSEQUENTIAL, SPECIAL OR INCIDENTAL DAMAGES AND/OR PUNITIVE DAMAGES OF ANY



KIND OR NATURE (COLLECTIVELY, “CONSEQUENTIAL DAMAGES”), UNDER ANY CIRCUMSTANCES OR FOR ANY REASON, INCLUDING AND NOT LIMITED TO ANY DELAY OR FAILURE TO FURNISH THE AIRCRAFT, OR CAUSED BY THE PERFORMANCE OR NON-PERFORMANCE BY LESSOR OF THIS AGREEMENT.

(c) LESSEE AGREES TO INDEMNIFY AND HOLD HARMLESS THE LESSOR PARTIES FROM ALL CLAIMS, INCLUDING REASONABLE ATTORNEY’S FEES AND COSTS, BROUGHT BY THE LESSEE PARTIES AGAINST THEM ARISING FROM OR RELATED TO (i) SUBJECT TO PARAGRAPH 9 (a) ABOVE, AMOUNTS THAT EXCEED THE INSURANCE PROCEEDS, OR (ii) CONSEQUENTIAL DAMAGES.

(d) THE PROVISIONS OF THIS PARAGRAPH 9 SHALL SURVIVE INDEFINITELY THE TERMINATION OR EXPIRATION OF THE AGREEMENT.

10. Lessee warrants that:

(a) It will not use the Aircraft for the purpose of providing transportation of passengers or cargo in air commerce for compensation or hire, for any illegal purpose, or in violation of any insurance policies with respect to the Aircraft;

(b) It will refrain from incurring any mechanics, international interest, prospective international interest or other lien and shall not attempt to convey, mortgage, assign, lease or grant or obtain an international interest or prospective international interest or in 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; and

(c) It will comply with all applicable laws, governmental and airport orders, rules, regulations, and Lessor’s policies, as shall from time to time be in effect relating in any way to the operation and use of the Aircraft under this Agreement.

11. For purposes of this Agreement, the permanent base of operation of the Aircraft shall be at a location of Lessor’s sole discretion.

12. Lessee shall not assign this Agreement or its interest herein to any other person or entity without the prior written consent of Lessor, which may be granted or denied in Lessor’s sole discretion. Subject to the preceding sentence, this Agreement shall inure to the benefit of and be binding upon the parties hereto, and their respective heirs, representatives, successors and assigns, and does not confer any rights on any other person. This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes any prior understandings and agreements between the parties respecting such subject matter. This Agreement may be amended or supplemented and any provision hereof waived only by a written instrument signed by all parties; provided, however, that Lessor may, from time to time, unilaterally update the aircraft listed on Schedule 1 (either adding or removing aircraft) without prior consent of Lessee so long as Lessor promptly delivers the updated Schedule 1 to Lessee following such update and otherwise complies with FAA requirements for such update. The failure or delay on the part of any party to insist on strict performance of any of the terms and conditions of this Agreement or to exercise any rights or remedies hereunder shall not constitute



a waiver of any such provisions, rights, or remedies. This Agreement may be executed in counterparts, which shall, singly or in the aggregate, constitute a fully executed and binding Agreement.

13. Except as otherwise set forth in Section 4, any notices provided for in this Agreement shall be in writing and shall be deemed to have been duly given (i) when delivered personally, or (ii) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested). Notice to or consent by Lessor, shall be sent to c/o Chief Financial Officer, 663 Highway 60, Monett, MO 65708, and in the case of notice to or consent by Lessee, to ___________ with an address ____________________________, or to such other address as a party may from time to time designate in writing to the other for that purpose.

14. If any one or more provisions of this Agreement shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal, or unenforceable provisions shall be replaced by a mutually acceptable provision, which, being valid, legal, and enforceable, comes closest to the intention of the parties underlying the invalid, illegal, or unenforceable provision. To the extent permitted by applicable law, the parties hereby waive any provision of law, which renders any provision of this Agreement prohibited or unenforceable in any respect.

15. This Agreement is entered into under, and is to be construed in accordance with, the laws of the State of Missouri, without reference to conflicts of laws.

[Remainder of Page Intentionally Left Blank]







16. TRUTH IN LEASING STATEMENT UNDER FAR SECTION 91.23

EACH OF THE AIRCRAFT LISTED ON SCHEDULE 1 ATTACHED HERETO HAVE BEEN MAINTAINED AND INSPECTED UNDER FAR PART 91 DURING THE 12 MONTH PERIOD PRECEDING THE DATE OF THIS LEASE.

THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED UNDER FAR PART 91 FOR OPERATIONS TO BE CONDUCTED UNDER THIS LEASE. DURING THE DURATION OF THIS LEASE, JACK HENRY AND ASSOCIATES, INC. OF 663 HIGHWAY 60, MONETT, MO 65708 IS CONSIDERED RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT UNDER THIS LEASE.

AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

THE “INSTRUCTIONS FOR COMPLIANCE WITH TRUTH IN LEASING REQUIREMENTS” ATTACHED HERETO ARE INCORPORATED HEREIN BY REFERENCE.

JACK HENRY AND ASSOCIATES, INC., THROUGH ITS UNDERSIGNED AUTHORIZED SIGNATORY BELOW, CERTIFIES THAT LESSOR IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT AND THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the date first above written.



LESSOR – JACK HENRY AND ASSOCIATES, INC.
By: ________________________________________
Name:
Title:
LESSEE –
By: ________________________________________


Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-K’ Filing    Date    Other Filings
Filed on:8/24/23None on these Dates
For Period end:6/30/23
 List all Filings 


14 Previous Filings that this Filing References

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 5/22/23  Jack Henry & Associates Inc.      8-K:1,2,9   5/16/23   12:2.2M
 9/01/22  Jack Henry & Associates Inc.      8-K:1,2,7,9 8/31/22   12:1.2M
 7/29/22  Jack Henry & Associates Inc.      8-K:5,9     7/26/22   11:332K
 2/17/22  Jack Henry & Associates Inc.      8-K:1,9     2/11/22   11:186K
 8/26/21  Jack Henry & Associates Inc.      8-K:5,9     8/20/21   11:308K
 8/25/21  Jack Henry & Associates Inc.      10-K        6/30/21   91:9.2M
 2/09/21  Jack Henry & Associates Inc.      10-Q       12/31/20   69:6M
 1/03/20  Jack Henry & Associates Inc.      8-K:5,9     1/01/20   14:269K
11/13/17  Jack Henry & Associates Inc.      8-K:5,9    11/09/17    2:110K
11/16/16  Jack Henry & Associates Inc.      S-8        11/16/16    5:188K
 7/01/16  Jack Henry & Associates Inc.      8-K/A:5,9   7/01/16    3:76K
 2/05/16  Jack Henry & Associates Inc.      10-Q       12/31/15   55:4.5M
11/16/15  Jack Henry & Associates Inc.      8-K:5,9    11/10/15    4:354K
11/05/14  Jack Henry & Associates Inc.      10-Q        9/30/14   61:4.9M
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