Document:

Exhibit 10.11

 

RESTRICTED STOCK AWARD

PURSUANT TO THE GLOBAL AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN

 

This RESTRICTED STOCK AWARD (the “Award”) is made and entered into as of the Grant Date by and between GLOBAL AVIATION HOLDINGS, INC. (the “Company”), a company organized under the laws of the State of Delaware; and                                                      (the “Employee”).

 

Upon and subject to the Additional Terms and Conditions attached hereto and incorporated herein by reference as part of this Award, the Company hereby awards as of the Grant Date to the Employee the Restricted Shares described below pursuant to the Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan (the “Plan”) in consideration of the Employee’s services to the Company (the “Restricted Stock Award”).

 

A.            Grant Date:                                    .

 

B.            Restricted Shares:                         shares of the Company’s Class A common stock (“Common Stock”).

 

C.            Plan under which granted:  Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan.

 

D.            Vesting:  The Restricted Shares shall become vested, as and to the extent indicated below, only if the “Service Condition,” as specified below, is satisfied.

 

	     
    	     
    	    Percentage of Restricted Shares
    
	    Years of Vesting Service
    	     
    	    which are Vested Shares
    
	     
    	     
    	     
    
	    Less than 5
    	     
    	    0%
    
	    5 or more
    	     
    	    100%
    

 

The Employee shall receive one Year of Vesting Service for each full consecutive one-year period of continuous service during the period beginning with the Grant Date and ending on the date the Employee experiences a Termination of Employment with the Company and all of its Affiliates, regardless of the reason.

 

Notwithstanding the foregoing, the Service Condition will be deemed satisfied as to all of the Restricted Shares if the Employee provides continuous services to the Company and/or any Affiliate following the Grant Date through the date of any of the earlier events listed below:

 

(a)           in the event of (i) a Termination of Employment by the Company (or Affiliate) without Cause; or (ii) a Termination of Employment from the Company and all Affiliates due to either death or a Disability; or

 

 

(b)           the effective date of a Change in Control.

 

The Restricted Shares which have satisfied (or are deemed to have satisfied) the Service Condition are herein referred to as the “Vested Shares.”  Any portion of the Restricted Shares which have not become Vested Shares in accordance with this Paragraph D. before or at the time of Employee’s Termination of Employment with the Company and all of its Affiliates shall be forfeited.

 

E.             Employee Acknowledgement:  The Employee acknowledges and agrees that partial consideration for the granting of the Award is the Employee’s consent to the cancellation of the outstanding equity rights in favor of the Employee as identified in Schedule 1 hereto and that all entitlements represented by such equity rights lapse and become null and void upon the Employee’s execution of this Award.

 

IN WITNESS WHEREOF, the Company and the Employee have executed and sealed this Award as of the Grant Date set forth above.

 

	     
    	    GLOBAL AVIATION HOLDINGS, INC.:
    
	     
    	     
    
	     
    	    By:
    	     
    
	     
    	     
    
	     
    	    Title:
    	     
    
	     
    	     
    
	     
    	     
    
	     
    	     
    
	     
    	    Employee
    

 

2

 

ADDITIONAL TERMS AND CONDITIONS

TO THE

RESTRICTED STOCK AWARD

PURSUANT TO THE GLOBAL AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN

 

1.             Condition to Delivery of Restricted Shares.

 

(a)           Employee must deliver to the Company, within two (2) business days after the earlier of (i) the date (the “Vesting Date”) on which any Restricted Shares become Vested Shares, or (ii) the date the Employee makes an election pursuant to Section 83(b) of the Internal Revenue Code as to all or any portion of the Restricted Shares, either cash or a certified check payable to the Company in the amount of all tax withholding obligations (whether federal, state or local) imposed on the Company by reason of the vesting of the Restricted Shares, or the making of an election pursuant to Section 83(b) of the Internal Revenue Code, as applicable, except as provided in Section 1(b).

 

(b)           If the Employee does not make an election pursuant to Section 83(b) of the Internal Revenue Code, in lieu of paying the withholding tax obligations in cash or by certified check as required by Section 1(a), Employee may elect (the “Withholding Election”) to have the actual number of shares of Common Stock that become Vested Shares reduced by the smallest number of whole shares of Common Stock which, when multiplied by the Fair Market Value of the Common Stock determined by the closing price for the Common Stock on the last business day immediately preceding the applicable Vesting Date, is sufficient to satisfy the amount of the tax withholding obligations imposed on the Company by reason of the vesting of the Restricted Shares on the applicable Vesting Date.  Employee may make a Withholding Election only if all of the following conditions are met:

 

(i)            the Withholding Election must be made on or prior to the Vesting Date by executing and delivering to the Company a properly completed Notice of Withholding Election, in substantially the form of Exhibit A attached hereto; and

 

(ii)            any Withholding Election made will be irrevocable; however, if the Vesting Date is not attributable to a Change in Control, the Committee (as defined in the Plan) may, in its sole discretion, disapprove and give no effect to any Withholding Election.

 

(c)           Unless and until the Employee provides for the payment of the tax withholding obligations in accordance with the provisions of this Section 1, the Company shall have no obligation to deliver any of the Vested Shares and may take any other actions necessary to satisfy such obligations, including withholding of appropriate sums from other amounts payable to the Employee.  If the shares of Common Stock are being traded by brokers and the Employee is not a “director” or “executive officer”, within the meaning of Section 13(k) of the Securities Exchange Act of 1934 (Section 402 of the Sarbanes-Oxley Act of 2002), at the time tax withholding obligations become due, at the

 

3

 

request of the Employee, the Committee may make, or authorize the making of, such arrangements with the Employee and a broker, dealer or other “creditor” (as defined by Regulation T issued by the Board of Governors of the Federal Reserve System) acting on behalf of the Employee for the receipt from such broker, dealer or other “creditor” of cash by the Company in an amount necessary to satisfy the Employee’s tax withholding obligations in exchange for delivery of a number of Vested Shares directly to the broker, dealer or other “creditor” having a value equal to the cash delivered.

 

2.             Issuance of Restricted Shares.

 

(a)           The Company shall issue the Restricted Shares as of the Grant Date in either manner described below, as determined by the Committee in its sole discretion:

 

(i)            by the issuance of share certificate(s) evidencing Restricted Shares to the Secretary of the Company or such other agent of the Company as may be designated by the Committee or the Secretary (the “Share Custodian”); or

 

(ii)           by documenting the issuance in uncertificated or book entry form on the Company’s stock records.

 

Evidence of the Restricted Shares either in the form of share certificate(s) or book entry, as the case may be, shall be held by the Company or Share Custodian, as applicable, until the Restricted Shares become Vested Shares in accordance with the Vesting Schedule.

 

(b)           If the shares of Common Stock are registered under the Securities Act of 1933, as amended (the “Securities Act”) and the Employee is determined by the Committee to be an “affiliate” of the Company, as such term is defined in Rule 144 (“Rule 144”) under the Securities Act, the Restricted Shares (and the Vested Shares resulting therefrom) shall be evidenced only by physical share certificates.

 

(c)           When the Restricted Shares become Vested Shares, the Company or the Share Custodian, as the case may be, shall deliver the Vested Shares to the Employee or, at the Company’s election, to a broker designated by the Company (the “Designated Broker”) by either physical delivery of the share certificate(s) or book entry transfer, as applicable, for the benefit of an account established in the name of the Employee, in either case, after, to the extent applicable, payment by the Employee of the tax withholding obligations pursuant to Section 1(a) and/or reduced by any Vested Shares withheld and returned to the Company pursuant to Section 1(b) above or delivered to a broker, dealer or other “creditor” as contemplated by Section 1(c) above (such reduced number of Vested Shares are referred to in this Section 2(c) as the “Net Vested Shares”).  If the number of Vested Shares includes a fraction of a share, neither the Company nor the Share Custodian shall be required to deliver the fractional share to the Employee, and the Company shall pay the Employee the amount determined by the Company to be the estimated fair market value therefor.  At any time after receipt by the Designated Broker, the Employee may require that the Designated Broker deliver the Net Vested Shares to

 

4

 

the Employee pursuant to such arrangements or agreements as may exist between the Designated Broker and the Employee.

 

(d)           In the event that the Employee forfeits any of the Restricted Shares, the Company shall cancel the issuance on its stock records and, if applicable, the Share Custodian shall promptly deliver the share certificate(s) representing the forfeited shares to the Company.

 

(e)           Employee hereby irrevocably appoints the Share Custodian, and any successor thereto, as the true and lawful attorney-in-fact of Employee with full power and authority to execute any stock transfer power or other instrument necessary to transfer any Restricted Shares to the Company in accordance with this Award, in the name, place, and stead of the Employee.  The term of such appointment shall commence on the Grant Date of this Award and shall continue until the last of the Restricted Shares are delivered to the Employee as Vested Shares or are returned to the Company as forfeited Restricted Shares or as Vested Shares withheld and returned to the Company pursuant to Section 1(b), as provided by the applicable terms of this Award.

 

(f)            Until the Restricted Shares become Vested Shares, the Employee shall be entitled to all rights applicable to holders of shares of Common Stock including, without limitation, the right to vote such shares and to receive dividends or other distributions thereon as provided by Section 3, except as otherwise expressly provided in this Award.

 

(g)           In the event the number of shares of Common Stock is increased or reduced as a result of a subdivision or combination of shares of Common Stock or the payment of a stock dividend or any other increase or decrease in the number of shares of Common Stock or other transaction such as a merger, reorganization or other change in the capital structure of the Company, the Employee agrees that any certificate representing shares of Common Stock or other securities of the Company issued as a result of any of the foregoing shall be delivered to the Share Custodian or recorded in book entry form, as applicable, and shall be subject to all of the provisions of this Award as if initially granted hereunder.

 

3.             Dividends.  The Employee shall be entitled to dividends or other distributions paid or made on Restricted Shares but only as and when the Restricted Shares to which the dividends or other distributions are attributable become Vested Shares.  Dividends paid on Restricted Shares will be held by the Company and transferred to the Employee, without interest, on such date as the Restricted Shares become Vested Shares.  Dividends or other distributions paid on Restricted Shares that are forfeited shall be retained by the Company.

 

4.             Restrictions on Transfer of Restricted Shares.

 

(a)           General Restrictions.  Except as provided by this Award, the Employee shall not have the right to make or permit to exist any transfer or hypothecation, whether outright or as security, with or without consideration, voluntary or involuntary, of all or any part of any right, title or interest in or to any Restricted Shares.  Any such disposition

 

5

 

not made in accordance with this Award shall be deemed null and void.  The Company will not recognize, or have the duty to recognize, any disposition not made in accordance with the Plan and this Award, and any Restricted Shares so transferred will continue to be bound by the Plan and this Award.  The Employee (and any subsequent holder of Restricted Shares) may not sell, pledge or otherwise directly or indirectly transfer (whether with or without consideration and whether voluntarily or involuntarily or by operation of law) any interest in or any beneficial interest in any Restricted Shares except pursuant to the provisions of this Award.  Any sale, pledge or other transfer (or any attempt to effect the same) of any Restricted Shares in violation of any provision of the Plan or this Award shall be void, and the Company shall not record such transfer, assignment, pledge or other disposition on its books or treat any purported transferee or pledgee of such Restricted Shares as the owner or pledgee of such Restricted Shares for any purpose.

 

(b)           Certain Permitted Transfers.  The restrictions contained in this Section 4 will not apply with respect to transfers of the Restricted Shares pursuant to applicable laws of descent and distribution; provided that the restrictions contained in this Section 4 will continue to be applicable to the Restricted Shares after any such transfer; and provided further that the transferee(s) of such Restricted Shares must agree in writing to be bound by the provisions of the Plan and this Award, including the provisions of Section 8.

 

5.             Additional Restrictions on Transfer.

 

(a)           In addition to any legends required under applicable securities laws, the certificates representing the Restricted Shares shall be endorsed with the following legend and the Employee shall not make any transfer of the Restricted Shares without first complying with the restrictions on transfer described in such legend:

 

TRANSFER IS RESTRICTED

 

THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND FORFEITURE PROVISIONS WHICH ALSO APPLY TO THE TRANSFEREE AS SET FORTH IN A RESTRICTED STOCK AWARD, DATED                       , A COPY OF WHICH IS AVAILABLE FROM THE COMPANY.

 

(b)           Opinion of Counsel.  No holder of Restricted Shares may sell, transfer, assign, pledge or otherwise dispose of (whether with or without consideration and whether voluntarily or involuntarily or by operation of law) any interest in or any beneficial interest in any Restricted Shares, except (i) pursuant to an effective registration statement under the Securities Act or (ii) in a transaction that fully complies with Rule 144, without first delivering to the Company an opinion of counsel (reasonably acceptable in form and substance to the Company) that neither registration nor qualification under the Securities Act and applicable state securities laws is required in connection with such transfer.

 

6

 

6.             Change in Capitalization.

 

(a)           The number and kind of Restricted Shares shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a subdivision or combination of shares or the payment of a stock dividend in shares of Common Stock to holders of outstanding shares of Common Stock or any other increase or decrease in the number of shares of Common Stock outstanding effected without receipt of consideration by the Company.  No fractional shares shall be issued in making such adjustment.  All adjustments made by the Committee under this Section shall be final, binding, and conclusive.

 

(b)           In the event of a merger, consolidation, extraordinary dividend (including a spin-off), reorganization, recapitalization, sale of substantially all of the Company’s assets, other change in the capital structure of the Company, tender offer for shares of Common Stock or a Change in Control, an appropriate adjustment may be made with respect to the Restricted Shares such that other securities, cash or other property may be substituted for the Common Stock held by Share Custodian or recorded in book entry form pursuant to this Award.

 

(c)           The existence of the Plan and the Restricted Stock Award shall not affect the right or power of the Company to make or authorize any adjustment, reclassification, reorganization or other change in its capital or business structure, any merger or consolidation of the Company, any issue of debt or equity securities having preferences or priorities as to the Common Stock or the rights thereof, the dissolution or liquidation of the Company, any sale or transfer of all or part of its business or assets, or any other corporate act or proceeding.

 

7.             Piggyback Registration.

 

(a)           Initial Public Offering.  If the Company determines to register its Common Stock in an initial public offering utilizing Form S-1, the Company will promptly give to the Employee a written notice thereof and include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Restricted Shares and Vested Shares (including any capital stock of the Company issued as a dividend or other distribution with respect to, or in exchange for or in replacement of the Restricted Shares and Vested Shares) specified in a written request made by the Employee within thirty (30) days after the Employee’s receipt of the written notice from the Company, except as set forth in Section 7(b) below.  Such written request may specify all or a part of the Restricted Shares and Option Shares for inclusion in such registration and any underwriting.

 

(b)           Underwritten Offering.  If the registration pursuant to this Section 7 involves an underwritten offering of the securities being registered, whether or not for sale for the account of the Company, to be distributed on a firm commitment basis by or through one or more underwriters of recognized national or regional standing under

 

7

 

underwriting terms appropriate for such a transaction, the Company will so advise the Employee as a part of the written notice given pursuant to Subsection (a).  In such event, the right of the Employee to registration pursuant to this Section 7 will be conditioned upon the Employee’s participation in such underwriting and the inclusion of the Restricted Shares and Option Shares designated by the Employee in the underwriting to the extent provided herein.  If such Restricted Shares and Option Shares are to be included in such registration, the Employee will (together with the Company and the other shareholders distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected for underwriting by the Company.  Notwithstanding any other provision of this Section 7, if the representative determines in good faith that marketing factors require a limitation on the number of shares to be underwritten, the Company will so advise all holders of securities requesting registration, and the number of shares of securities that are entitled to be included in the registration and underwriting will be allocated in the following manner:  the number of securities that may be included in the registration and underwriting by the Employee and each of the other shareholders will be reduced, on a pro rata basis (based on the number of shares held by such holder), by such minimum number of shares as is necessary to comply with such limitation.  If the Employee or any of the other shareholders disapproves of the terms of any such underwriting, such person may elect to withdraw therefrom by prompt written notice to the Company and the underwriter.  Any Restricted Shares and Vested Shares or other securities excluded or withdrawn from such underwriting will be withdrawn from such registration.

 

(c)           Expenses of Registration.  All expenses incurred in connection with any registration, qualification or compliance pursuant to this Section 7 will be borne by the Company, and all sales commissions will be borne by the Employee pro rata on the basis of the number of the Restricted Shares and Vested Shares so registered as compared to the total shares of Common Stock so registered.

 

(d)           Registration Procedures.  The Company will keep the Employee advised in writing as to the progress and completion of the registration.

 

8.             Lock-up Agreement. The Employee hereby agrees that he will not, directly or indirectly, sell, offer, contract to sell, grant of options for the purchase of, transfer the economic risk of ownership in, make any short sale of, pledge or otherwise dispose of any Vested Shares during the thirty (30) days prior to and the one hundred eighty (180) days (or any shorter period permitted by the managing underwriter) after the effectiveness of any underwritten public offering, except as part of such underwritten public offering or if otherwise permitted by the Company; provided, all similarly situated shareholders become subject to the same restrictions.  The Employee hereby agrees to execute and deliver any additional document or acknowledgement reflecting the foregoing provisions or containing similar restrictions as may be requested by the Company or its managing underwriters in connection with the initial public offering of Common Stock. The Company may place a legend on any stock certificates representing Vested Shares and may impose stop-transfer instructions with respect to the Vested Shares in order to enforce the foregoing restrictions.  The provisions of this Section 8 will terminate upon the completion of any Public Sale.

 

8

 

9.             Governing Laws.  This Award shall be construed, administered and enforced according to the laws of the State of Delaware; provided, however, no Restricted Shares shall be issued except, in the reasonable judgment of the Committee, in compliance with exemptions under applicable state securities laws of the state in which the Employee resides, and/or any other applicable securities laws.

 

10.           Successors.  This Award shall be binding upon and inure to the benefit of the heirs, legal representatives, successors, and permitted assigns of the parties.

 

11.           Notice.  All notices, requests, waivers and other communications required or permitted hereunder shall be in writing and shall be either personally delivered, sent by facsimile or by reputable overnight courier service or mailed by first class mail, return receipt requested, to the recipient at the address below indicated:

 

	    If to the Company:
    	     
    	    Global Aviation Holdings, Inc.
    
	     
    	     
    	    HLH Building
    
	     
    	     
    	    101 World Drive
    
	     
    	     
    	    Peachtree City, GA 30269
    
	     
    	     
    	    Attn: Chief Executive Officer
    
	     
    	     
    	     
    
	    If to the Recipient:
    	     
    	     
    
	     
    	     
    	     
    

 

or such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party.  All such notices, requests, waivers and other communications shall be deemed to have been effectively given:  (a) when personally delivered to the party to be notified; (b) when sent by confirmed facsimile to the party to be notified; (c) five (5) business days after deposit in the United States Mail postage prepaid by certified or registered mail with return receipt requested at any time other than during a general discontinuance of postal service due to strike, lockout, or otherwise (in which case such notice, request, waiver or other communication shall be effectively given upon receipt) and addressed to the party to be notified as set forth above; or (d) two (2) business days after deposit with a national overnight delivery service, postage prepaid, addressed to the party to be notified as set forth above with next-business-day delivery guaranteed. A party may change its or his notice address given above by giving the other party ten (10) days’ written notice of the new address in the manner set forth above.

 

12.           Severability.  In the event that any one or more of the provisions or portion thereof contained in this Award shall for any reason be held to be invalid, illegal, or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of this Award, and this Award shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein.

 

9

 

13.           Entire Agreement.  Subject to the terms and conditions of the Plan, this Award expresses the entire understanding and agreement of the parties with respect to the subject matter.  This Award may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.

 

14.           Headings and Capitalized Terms.  Paragraph headings used herein are for convenience of reference only and shall not be considered in construing this Award.  Capitalized terms used, but not defined, in this Award shall be given the meaning ascribed to them in Section 17 or the Plan, as applicable.

 

15.           Specific Performance.  In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Award, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.

 

16.           No Right to Continued Employment.  Neither the establishment of the Plan nor the grant of the Restricted Stock Award made pursuant to this Award shall be construed as giving Employee the right to any continued service relationship with the Company or any Affiliate.

 

17.           Special Definitions.  As used in this Award,

 

(a)           “Cause” has the same meaning as provided in any employment or other services agreement between the Employee and the Company or Affiliate(s) on the date of termination of the employment or other service relationship, or if no such definition or employment or services agreement exists, “Cause” means conduct amounting to:

 

(i)            a material breach or violation of the terms of any agreement to which the Employee and the Company or Affiliate(s) are party, including, without limitation, a willful and substantial failure by the Employee to perform his duties and responsibilities in the manner and to the extent required under any such agreement;

 

(ii)           fraud, dishonesty, or willful misconduct in the performance of the duties and responsibilities of the Employee’s service with the Company or Affiliate(s);

 

(iii)          conviction of the Employee of a crime involving breach of trust or moral turpitude; or

 

(iv)          gross and willful insubordination or inattention to the duties and responsibilities of the Employee’s service with the Company or Affiliate(s).

 

(b)           “Public Sale” means the completion of any sale of any shares of Common Stock to the public pursuant to an offering registered under the Securities Act of 1933 or 

 

10

 

to the public through a broker, dealer or market maker pursuant to the provisions of Rule 144 adopted under the Securities Act of 1933.

 

(c)           Other capitalized terms that are not defined herein have the meaning set forth in the Plan or the Award, except where the context does not reasonably permit.

 

11

 

EXHIBIT A

 

NOTICE OF WITHHOLDING ELECTION

GLOBAL AVIATION HOLDINGS, INC.

RESTRICTED STOCK AWARD

 

TO:         Global Aviation Holdings, Inc.

 

	    FROM:
    	     
    	    SSN:
    

 

RE:                          Withholding Election

 

This election relates to the Restricted Stock Award identified in Paragraph 3 below. I hereby certify that:

 

(1)           My correct name and social security number and my current address are set forth at the end of this document.

 

(2)           I am (check one, whichever is applicable).

 

o            the original recipient of the Restricted Stock Award.

 

o            the legal representative of the estate of the original recipient of the Restricted Stock Award.

 

o            a legatee of the original recipient of the Restricted Stock Award.

 

o            the legal guardian of the original recipient of the Restricted Stock Award.

 

(3)           The Restricted Stock Award pursuant to which this election relates was issued under the Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan in the name of                                    for a total of                              shares of Common Stock. This election relates to              shares of Common Stock to be delivered upon the vesting of a portion of the Restricted Shares, provided that the numbers set forth above shall be deemed changed as appropriate to reflect stock splits and other adjustments contemplated by the applicable provisions of the Restricted Stock Award and the Plan.

 

(4)           I hereby elect to have certain of the Vested Shares withheld and returned to the Company, rather than delivered to me, for the purpose of having the value of such shares applied to pay minimum required federal, state and local, if any, tax withholding obligations arising from the vesting event.

 

The fair market value of the Vested Shares to be withheld and returned to the Company shall be equal to the minimum statutory tax withholding requirements under federal, state and local law in connection with the vesting event, reduced by the amount of any cash or certified check payment tendered by me to the Company in partial payment of such tax withholding obligations.

 

1

 

(5) I understand that this Withholding Election is made prior to the Vesting Date and is otherwise timely made pursuant to Section 1 of the Restricted Stock Award and Section 5.1 of the Plan.

 

(6) I further understand that, if this Withholding Election is not disapproved by the Committee, the Company shall withhold from the Vested Shares a whole number of shares of Common Stock having the value specified in Paragraph 4 above.

 

(7) The Plan has been made available to me by the Company.  I have read and understand the Plan and the provisions of the Restricted Stock Award and I have no reason to believe that any of the conditions therein to the making of this Withholding Election have not been met.  Capitalized terms used in this Notice of Withholding Election without definition shall have the meanings given to them in the Plan or Section 17 of the Restricted Stock Award, as applicable.

 

 

	    Dated:
    	     
    	     
    
	     
    	     
    	     
    
	    Signature:
    	     
    	     
    
	     
    	     
    	     
    
	     
    	     
    
	    Name (Printed)
    	     
    
	     
    	     
    	     
    
	     
    	     
    
	    Street Address
    	     
    
	     
    	     
    	     
    
	     
    	     
    
	    City, State, Zip Code
    	     
    
	     
    	     
    	     
    
	     
    	     
    
	    Social Security Number
    	     
    

 

2

 

SCHEDULE 1

 

Outstanding Equity Rights

 

1Exhibit 10.12

 

NONQUALIFIED STOCK OPTION AWARD

PURSUANT TO THE GLOBAL AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN

 

THIS NONQUALIFIED STOCK OPTION AWARD (the “Award”) is made as of the Grant Date by and between GLOBAL AVIATION HOLDINGS, INC. (the “Company”), a company organized under the laws of the State of Delaware; and                          (the “Participant”).

 

Upon and subject to the Terms and Conditions attached hereto and incorporated herein by reference, the Company hereby awards as of the Grant Date to Participant a nonqualified stock option (the “Option”), as described below, to purchase the Option Shares.

 

A.            Grant Date:                               , 2009.

 

B.            Type of Option:  Nonqualified Stock Option.

 

C.            Plan under which granted:  Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan.

 

D.            Option Shares:  All or any part of            shares of the Company’s Class A common stock (the “Common Stock”), subject to adjustment as provided in the attached Terms and Conditions.

 

E.             Exercise Price:  The Option Shares shall be allocated among three (3) tranches (each, a “Tranche”) with the Option Shares allocated to each tranche having its own Exercise Price, as specified below:

 

Tranche 1, consisting of            Option Shares, with a per share exercise price of $1,000.00;

Tranche 2, consisting of            Option Shares, with a per share exercise price of $2,000.00; and

Tranche 3, consisting of            Option Shares, with a per share exercise price of $3,000.00;

 

Each Exercise Price shall be subject to adjustment as provided in the attached Terms and Conditions. Each Exercise Price is, in the judgment of the Committee (as defined in the Plan), not less than 100% of the Fair Market Value of a share of Common Stock on the Grant Date.

 

F.             Option Period:  The Option may be exercised only during the Option Period which commences on the Grant Date and ends on the earliest of:

 

(i)            the tenth (10th) anniversary of the Grant Date; or

 

 

(ii)           twelve (12) months following the date the Participant ceases to be either an employee, director, or any other type of service provider of the Company and its Affiliates due to a Termination of Employment or termination of any other service relationship for reasons other than for Cause;

 

provided, however, that the Option may be exercised as to no more than the vested Option Shares determined pursuant to the Vesting Schedule. Notwithstanding the foregoing, the Option shall cease to be exercisable upon the date the Participant ceases to be an employee, director, or any other type of service provider of the Company or an Affiliate due to a Termination of Employment or termination of any other service relationship by the Company or an Affiliate for Cause.  Note that other limitations to exercising the Option, as described in the attached Terms and Conditions, may apply.

 

G.            Vesting Schedule:  The Option Shares shall become vested in accordance with Schedule  1 hereto (the “Vesting Schedule”).  Any portion of the Option which is not vested at the time of Participant’s Termination of Employment or termination of any other service relationship with the Company or an Affiliate shall be forfeited to the Company.

 

H.            Participant Acknowledgement:  The Participant acknowledges and agrees that partial consideration for the granting of the Option is the Participant’s consent to the cancellation of the outstanding equity rights in favor of the Participant as identified in Schedule 2 hereto and that all entitlements represented by such equity rights lapse and become null and void upon the Participant’s execution of this Award.

 

IN WITNESS WHEREOF, the Company and the Participant have executed and sealed this Award as of the Grant Date set forth above.

 

	     
    	    GLOBAL AVIATION HOLDINGS, INC.:
    
	     
    	     
    
	     
    	    By:
    	     
    
	     
    	     
    	     
    
	     
    	    Title:
    	     
    
	     
    	     
    	     
    
	     
    	     
    	     
    
	     
    	     
    
	     
    	    Participant
    

 

2

 

TERMS AND CONDITIONS

TO THE

NONQUALIFIED STOCK OPTION AWARD

PURSUANT TO THE GLOBAL AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN

 

1.             Exercise of Option.  Subject to the provisions provided herein or in the Award made pursuant to the Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan:

 

(a)           the Option may be exercised with respect to all or any portion of the vested Option Shares at any time during the Option Period by:

 

(i)            the delivery to the Company, at its principal place of business, of a written notice of exercise in substantially the form attached hereto as Exhibit 1, which shall be actually delivered to the Company at least ten (10) days prior to the date upon which Participant desires to exercise all or any portion of the Option (unless such prior notice is waived by the Company);

 

(ii)           payment as provided in Section 3 to the Company of the applicable Exercise Price multiplied by the number of Option Shares being purchased from the Tranche(s) designated (the “Purchase Price”); and

 

(iii)      satisfaction of the withholding tax obligations under Section 2.

 

Upon acceptance of such notice and receipt of payment in full of the Purchase Price and, if applicable, any withholding taxes, the Company shall cause to be issued a certificate representing the Option Shares purchased.  Notwithstanding the foregoing, in the event the Participant is given notice of termination for Cause under any employment or services agreement between the Participant and the Company or any Affiliate or otherwise, the Participant’s ability to exercise the Option shall be suspended from the giving of such notice until such time as the Participant cures the circumstance(s) constituting Cause, if expressly permitted by the applicable employment or services agreement or otherwise, or, if there is no opportunity to cure or no cure is timely effected, from and after the giving of such notice through and including the effective date that the Participant’s employment or other service relationship is terminated for Cause.

 

2.             Withholding.  The Participant must satisfy applicable federal, state, and local, if any, withholding taxes imposed by reason of the exercise of the Option either by paying to the Company the full amount of the withholding obligation (a) in cash; (b) by tendering shares of Common Stock which are owned by the Participant prior to the date of exercise having a Fair Market Value equal to the withholding obligation (a “Withholding Election”); (c) by electing, irrevocably and in writing (also a “Withholding Election”), to have the smallest number of whole shares of Common Stock withheld by the Company which, when multiplied by the Fair Market Value of the Common Stock as of the date the Option is exercised, is sufficient to satisfy the

 

 

amount of withholding tax; or (d) by any combination of the above.  Optionee may make a Withholding Election only if the following conditions are met:

 

(i)            the Withholding Election is made on or prior to the date the Notice of Exercise is submitted to the Company (the “Tax Date”) by executing and delivering to the Company a properly completed Notice of Withholding Election in substantially the form attached hereto as Exhibit 2; and

 

(ii)           any Withholding Election will be irrevocable; however, the Committee may, in its sole discretion, disapprove and give no effect to the Withholding Election.

 

3.             Purchase Price.  Payment of the Purchase Price for all Option Shares purchased pursuant to the exercise of an Option shall be made:

 

(a)           in cash or cash equivalents;

 

(b)           by electing to have the number of shares of Common Stock to be issued upon exercise reduced by the number of shares of Common Stock having a Fair Market Value, as determined under the Plan, on the date of exercise either equal to the Purchase Price or in combination with cash or cash equivalents equal to the Purchase Price;

 

(c)           by delivery to the Company of a number of shares of Common Stock which are owned by the Participant, having a Fair Market Value, as determined under the Plan, on the date of exercise either equal to the Purchase Price or in combination with cash or check equal to the Purchase Price;

 

(d)           if and when the Common Stock becomes traded by brokers, whether on a national securities exchange or otherwise, by receipt of the Purchase Price in cash from a broker, dealer or other “creditor” as defined by Regulation T issued by the Board of Governors of the Federal Reserve System following delivery by the Participant to the Committee of instructions in a form acceptable to the Committee regarding delivery to such broker, dealer or other creditor of that number of Option Shares with respect to which the Option is exercised, but only as and to the extent permitted under Section 13(k) of the Exchange Act (Section 402 of the Sarbanes-Oxley Act of 2002); or

 

(e)           in any combination of the foregoing.

 

4.             Rights as Shareholder.  Until the stock certificates reflecting the Option Shares accruing to the Participant upon exercise of the Option are issued to the Participant, the Participant shall have no rights as a shareholder with respect to such Option Shares.  The Company shall make no adjustment for any dividends or distributions or other rights on or with respect to Option Shares for which the record date is prior to the issuance of that stock certificate, except as the Plan otherwise provides.

 

2

 

5.             Restriction on Transfer of Option and of Option Shares.

 

(a)           General Restrictions.  The Participant (and any subsequent holder of the Option) may not sell, pledge or otherwise directly or indirectly transfer (whether with or without consideration and whether voluntarily or involuntarily or by operation of law) any interest in or any beneficial interest in the Option except pursuant to the provisions of this Award except or to the extent waived in writing by the Committee.  Any sale, pledge or other transfer (or any attempt to effect the same) of the Option in violation of any provision of this Award shall be void, and the Company shall not record such transfer, assignment, pledge or other disposition on its books or treat any purported transferee or pledgee of the Option as the owner or pledgee of the Option for any purpose.

 

(b)           Certain Permitted Transfers of Options.  The restrictions contained in this Section will not apply with respect to transfers of the Option pursuant to applicable laws of descent and distribution; provided that the restrictions contained in this Section will continue to be applicable to the Option after any such transfer; and provided further that the transferee(s) of the Option must agree in writing to be bound by the provisions of this Award.

 

(c)           Limitations on Option Shares.  Unless and until a Public Sale, the Participant shall be subject to the provisions of Section 9 and no transfer of the Option Shares to a third party prior to a Public Sale shall be permitted unless the transferee(s) of the Option Shares agrees in writing to be bound by the provisions of Section 9.

 

6.              Changes in Capitalization.

 

(a)           The number of Option Shares allocated to each Tranche and each Exercise Price shall be proportionately adjusted for nonreciprocal transactions between the Company and the holders of capital stock of the Company that cause the per share value of the shares of Common Stock underlying the Option to change, such as a stock dividend, stock split, spinoff, rights offering, or recapitalization through a large, nonrecurring cash dividend (each, an “Equity Restructuring”).

 

(b)           In the event of a merger, consolidation, reorganization, extraordinary dividend, sale of substantially all of the Company’s assets or other material change in the capital structure of the Company, or a tender offer for shares of Common Stock, or a Change in Control, that in each case is not an Equity Restructuring, the Committee or its designee shall take such action to make such adjustments in the Option or the terms of this Award as the Committee or its designee, in its sole discretion, determines in good faith is necessary or appropriate, including, without limitation, adjusting the number and class of securities subject to the Option with a corresponding adjustment in each Exercise Price, substituting a new option to replace the Option, accelerating the termination of the Option Period or terminating the Option in consideration of a cash payment to the Participant in an amount equal to the excess of the then Fair Market Value of the Option Shares over the aggregate, applicable Exercise Price of the Option Shares; provided, however, that no such adjustment shall be inconsistent with the rights of the Participant as provided in these

 

3

 

Terms and Conditions.  Any determination made by the Committee or its designee pursuant to this Section 6(b) will be final and binding on the Participant.  Any action taken by the Committee or its designee need not treat all Participants equally.

 

(c)           The existence of the Plan and the Option granted pursuant to this Award shall not affect in any way the right or power of the Company to make or authorize any adjustment, reclassification, reorganization or other change in its capital or business structure, any merger or consolidation of the Company, any issue of debt or equity securities having preferences or priorities as to the Common Stock or the rights thereof, the dissolution or liquidation of the Company, any sale or transfer of all or any part of its business or assets, or any other corporate act or proceeding. Any adjustment pursuant to this Section may provide, in the Committee’s discretion, for the elimination without payment therefor of any fractional shares that might otherwise become subject to any Option.

 

7.             Special Limitation on Exercise.  Any exercise of the Option is subject to the condition that if at any time the Committee, in its discretion, shall determine that the listing, registration, or qualification of the shares covered by the Option upon any securities exchange or under any state or federal law is necessary or desirable as a condition of or in connection with the delivery of shares thereunder, the delivery of any or all shares pursuant to the Option may be withheld unless and until such listing, registration or qualification shall have been effected.  The Participant shall deliver to the Company, prior to the exercise of the Option, such information, representations and warranties as the Company may reasonably request in order for the Company to be able to satisfy itself that the Option Shares are being acquired in accordance with the terms of an applicable exemption from the securities registration requirements of applicable federal and state securities laws.

 

8.             Piggyback Registration.

 

(a)           Initial Public Offering.  If the Company determines to register its Common Stock in an initial public offering utilizing Form S-1, the Company will promptly give to the Participant a written notice thereof and include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Option Shares (including any capital stock of the Company issued as a dividend or other distribution with respect to, or in exchange for or in replacement of the Option Shares) specified in a written request made by the Participant within thirty (30) days after the Participant’s receipt of the written notice from the Company, except as set forth in Section 8(b) below.  Such written request may specify all or a part of the Option Shares for inclusion in such registration and any underwriting.

 

(b)           Underwritten Offering.  If the registration pursuant to this Section 8 involves an underwritten offering of the securities being registered, whether or not for sale for the account of the Company, to be distributed on a firm commitment basis by or through one or more underwriters of recognized national or regional standing under underwriting terms appropriate for such a transaction, the Company will so advise the Participant as a part of the written notice given pursuant to Subsection (a).  In such event, the right of the Participant to registration pursuant to this Section 8 will be conditioned

 

4

 

upon the Participant’s participation in such underwriting and the inclusion of the Option Shares designated by the Participant in the underwriting to the extent provided herein.  If such Option Shares are to be included in such registration, the Optionee will (together with the Company and the other shareholders distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected for underwriting by the Company.  Notwithstanding any other provision of this Section 8, if the representative determines in good faith that marketing factors require a limitation on the number of shares to be underwritten, the Company will so advise all holders of securities requesting registration, and the number of shares of securities that are entitled to be included in the registration and underwriting will be allocated in the following manner:  the number of securities that may be included in the registration and underwriting by the Participant and each of the other shareholders will be reduced, on a pro rata basis (based on the number of shares held by such holder), by such minimum number of shares as is necessary to comply with such limitation.  If the Participant or any of the other shareholders disapproves of the terms of any such underwriting, such person may elect to withdraw therefrom by prompt written notice to the Company and the underwriter.  Any Option Shares or other securities excluded or withdrawn from such underwriting will be withdrawn from such registration.

 

(c)           Expenses of Registration.  All expenses incurred in connection with any registration, qualification or compliance pursuant to this Section 8 will be borne by the Company, and all sales commissions will be borne by the Participant pro rata on the basis of the number of the Option Shares so registered as compared to the total shares of Common Stock so registered.

 

(d)           Registration Procedures.  The Company will keep the Participant advised in writing as to the progress and completion of the registration.

 

9.             Lock-up Agreement. The Participant hereby agrees that he will not, directly or indirectly, sell, offer, contract to sell, grant of options for the purchase of, transfer the economic risk of ownership in, make any short sale of, pledge or otherwise dispose of any Option Shares during the thirty (30) days prior to and the one hundred eighty (180) days (or any shorter period permitted by the managing underwriter) after the effectiveness of any underwritten public offering, except as part of such underwritten public offering or if otherwise permitted by the Company; provided, all similarly situated shareholders become subject to the same restrictions. The Participant hereby agrees to execute and deliver any additional document or acknowledgement reflecting the foregoing provisions or containing similar restrictions as may be requested by the Company or its managing underwriters in connection with the initial public offering of Common Stock. The Company may place a legend on any stock certificates representing Option Shares and may impose stop-transfer instructions with respect to the Option Shares in order to enforce the foregoing restrictions.

 

10.           Legend on Stock Certificates.  Certificates evidencing the Option Shares, to the extent appropriate at the time, shall have noted conspicuously on the certificates a legend intended to give all persons full notice of the existence of the conditions, restrictions, rights and obligations set forth herein and in the Plan.

 

5

 

11.           Governing Laws.  The Award and these Terms and Conditions shall be construed, administered and enforced according to the laws of the State of Delaware; provided, however, the Option may not be exercised except in compliance with exemptions available under applicable state securities laws of the state in which the Participant resides and/or any other applicable securities laws.

 

12.           Successors.  The Award and these Terms and Conditions shall be binding upon and inure to the benefit of the heirs, legal representatives, successors and permitted assigns of the Participant and the Company.

 

13.           Notice.  Except as otherwise specified herein, all notices and other communications under this Award shall be in writing and shall be deemed to have been given if personally delivered or if sent by registered or certified United States mail, return receipt requested, postage prepaid, addressed to the proposed recipient at the last known address of the recipient.  Any party may designate any other address to which notices shall be sent by giving notice of the address to the other parties in the same manner as provided herein.

 

14.           Severability.  In the event that any one or more of the provisions or portion thereof contained in the Award and these Terms and Conditions shall for any reason be held to be invalid, illegal or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of the Award and these Terms and Conditions, and the Award and these Terms and Conditions shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein.

 

15.           Entire Agreement.  Subject to the terms and conditions of the Plan, the Award and these Terms and Conditions express the entire understanding of the parties with respect to the Option.

 

16.           Violation.  Except as provided in Section 5, any transfer, pledge, sale, assignment, or hypothecation of the Option or any portion thereof shall be a violation of the terms of the Award or these Terms and Conditions and shall be void and without effect.

 

17.           Headings.  Section headings used herein are for convenience of reference only and shall not be considered in construing the Award or these Terms and Conditions.

 

18.           Specific Performance.  In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of the Award and these Terms and Conditions, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.

 

19.           No Right to Continued Retention.  Neither the establishment of the Plan nor the award of Option Shares hereunder shall be construed as giving the Participant the right to continued employment or other service relationship with the Company or any Affiliate.

 

6

 

20.           Definitions.  As used in this Award,

 

(a)           “Cause” has the same meaning as provided in any employment or other services agreement between the Participant and the Company or Affiliate(s) on the date of termination of the employment or other service relationship, or if no such definition or employment or services agreement exists, “Cause” means conduct amounting to:

 

(i)            a material breach or violation of the terms of any agreement to which the Participant and the Company or Affiliate(s) are party, including, without limitation, a willful and substantial failure by the Participant to perform his duties and responsibilities in the manner and to the extent required under any such agreement;

 

(ii)           fraud, dishonesty, or willful misconduct in the performance of the duties and responsibilities of the Participant’s service with the Company or Affiliate(s);

 

(iii)          conviction of the Participant of a crime involving breach of trust or moral turpitude; or

 

(iv)          gross and willful insubordination or inattention to the duties and responsibilities of the Participant’s service with the Company or Affiliate(s).

 

(b)           “Public Sale” means the completion of any sale of any shares of Common Stock to the public pursuant to an offering registered under the Securities Act of 1933 or to the public through a broker, dealer or market maker pursuant to the provisions of Rule 144 adopted under the Securities Act of 1933.

 

(c)           Other capitalized terms that are not defined herein have the meaning set forth in the Plan or the Award, except where the context does not reasonably permit.

 

7

 

EXHIBIT 1

 

NOTICE OF EXERCISE OF

STOCK OPTION TO PURCHASE

COMMON STOCK OF

GLOBAL AVIATION HOLDINGS, INC.

 

	     
    	    Name
    	     
    
	     
    	    Address
    	     
    
	     
    	     
    
	     
    	    Date
    	     
    

 

Global Aviation Holdings, Inc.

HLH Building

101 World Drive

Peachtree City, GA 30269

 

Attn:  Chief Executive Officer

 

	    Re:
    	    Exercise of Nonqualified Stock Option
    

 

Gentlemen:

 

Subject to acceptance hereof by Global Aviation Holdings, Inc. (the “Company”) and pursuant to the provisions of the Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan (the “Plan”), I hereby give notice of my election to exercise options granted to me to purchase                              shares of Common Stock of the Company under the Nonqualified Stock Option Award (the “Award”) dated as of                       , 2009.  The purchase shall take place as of                     , 20       (the “Exercise Date”).

 

On or before the Exercise Date, I will pay the applicable purchase price as follows:

 

o                                    by delivery of cash or a certified check for $                           for the full purchase price payable to the order of Global Aviation Holdings, Inc.

 

o                                    by having a number of Option Shares withheld, the Fair Market Value of which as of the date of exercise is sufficient to satisfy the Exercise Price;

 

o                                    by delivery of shares of Common Stock that I own and that are represented by a stock certificate I will surrender to the Company with my endorsement.  If the number of shares of Common Stock represented by such stock certificate exceed the number to be applied against the purchase price, I understand that a new stock certificate will be issued to me reflecting the excess number of shares; or

 

o                                    if and when the Common Stock becomes traded by brokers, whether on a national securities exchange or otherwise, by delivery of the purchase price by                                                   , a broker, dealer or other “creditor” as defined by Regulation T issued by the Board of Governors of the Federal Reserve System.  I hereby authorize the Company to issue a stock certificate for the number of shares indicated above in the name of said broker, dealer or other creditor or its nominee pursuant to instructions received by the Company and to deliver said stock certificate directly to that broker, dealer or other creditor (or to such other party

 

1

 

specified in the instructions received by the Company from the broker, dealer or other creditor) upon receipt of the purchase price.

 

I understand that I am not permitted to exercise the Option if I have been given notice that my employment will be terminated for Cause.  I understand that if my ability to exercise is suspended in the manner provided for in the foregoing sentence, my ability to exercise may only be reinstated in the event that I cure the circumstances specified in such notice that was the basis for my termination for Cause and only if such ability to cure is expressly provided for in the applicable employment agreement or otherwise.

 

Any required federal, state, and local income tax withholding obligations on the exercise of the Award shall be paid on or before the Exercise Date in cash or cash equivalents.

 

As soon as the stock certificate is registered in my name, please deliver it to me at the above address.

 

If the Common Stock being acquired is not registered for issuance to and resale by the Participant pursuant to an effective registration statement on Form S-8 (or successor form) filed under the Securities Act of 1933, as amended (the “1933 Act”), I hereby represent, warrant, covenant, and agree with the Company as follows:

 

The shares of the Common Stock being acquired by me will be acquired for my own account without the participation of any other person, with the intent of holding the Common Stock for investment and without the intent of participating, directly or indirectly, in a distribution of the Common Stock and not with a view to, or for resale in connection with, any distribution of the Common Stock, nor am I aware of the existence of any distribution of the Common Stock;

 

I am not acquiring the Common Stock based upon any representation, oral or written, by any person with respect to the future value of, or income from, the Common Stock but rather upon an independent examination and judgment as to the prospects of the Company;

 

The Common Stock was not offered to me by means of publicly disseminated advertisements or sales literature, nor am I aware of any offers made to other persons by such means;

 

I am able to bear the economic risks of the investment in the Common Stock, including the risk of a complete loss of my investment therein;

 

I understand and agree that the Common Stock will be issued and sold to me without registration under any state law relating to the registration of securities for sale, and will be issued and sold in reliance on the exemptions from registration under the 1933 Act, provided by Sections 3(b) and/or 4(2) thereof and the rules and regulations promulgated thereunder;

 

The Common Stock cannot be offered for sale, sold or transferred by me other than pursuant to: (A) an effective registration under the 1933 Act or in a transaction otherwise in compliance with the 1933 Act; and (B) evidence satisfactory to the Company of compliance with the applicable securities laws of other jurisdictions.  The Company shall be entitled to rely upon an opinion of counsel satisfactory to it with respect to compliance with the above laws;

 

The Company will be under no obligation to register the Common Stock or to comply with any exemption available for sale of the Common Stock without registration or filing, and the information or conditions necessary to permit routine sales of securities of the Company under Rule 144 under the 1933 Act are not now available and no assurance has been given that it or they will

 

2

 

become available.  The Company is under no obligation to act in any manner so as to make Rule 144 available with respect to the Common Stock;

 

I have and have had complete access to and the opportunity to review and make copies of all material documents related to the business of the Company, including, but not limited to, contracts, financial statements, tax returns, leases, deeds and other books and records.  I have examined such of these documents as I wished and am familiar with the business and affairs of the Company.  I realize that the purchase of the Common Stock is a speculative investment and that any possible profit therefrom is uncertain;

 

I have had the opportunity to ask questions of and receive answers from the Company and any person acting on its behalf and to obtain all material information reasonably available with respect to the Company and its affairs.  I have received all information and data with respect to the Company which I have requested and which I have deemed relevant in connection with the evaluation of the merits and risks of my investment in the Company;

 

I have such knowledge and experience in financial and business matters that I am capable of evaluating the merits and risks of the purchase of the Common Stock hereunder and I am able to bear the economic risk of such purchase; and

 

The agreements, representations, warranties and covenants made by me herein extend to and apply to all of the Common Stock of the Company issued to me pursuant to this Award.  Acceptance by me of the certificate representing such Common Stock shall constitute a confirmation by me that all such agreements, representations, warranties and covenants made herein shall be true and correct at that time.

 

I understand that the certificates representing the shares being purchased by me in accordance with this notice shall bear a legend referring to the foregoing covenants, representations and warranties and restrictions on transfer, and I agree that a legend to that effect may be placed on any certificate which may be issued to me as a substitute for the certificates being acquired by me in accordance with this notice.  I further understand that capitalized terms used in this Notice of Exercise without definition shall have the meanings given to them in the Award or in the Plan, as applicable.

 

	     
    	     
    	    Very truly yours,
    
	     
    	     
    	     
    
	     
    	     
    	     
    
	     
    	     
    
	    AGREED TO AND ACCEPTED:
    	     
    
	    GLOBAL AVIATION HOLDINGS, INC.
    	     
    
	     
    	     
    
	    By:
    	     
    	     
    	     
    
	    Title:
    	     
    	     
    	     
    
	     
    	     
    
	    Number of Shares
    	    Number of Shares
    
	    Exercised:
    	     
    	     
    	    Remaining:
    	     
    	     
    
	     
    	     
    	     
    	     
    	     
    
	     
    	     
    
	    Date:
    	     
    	     
    	     
    
								

 

3

 

EXHIBIT 2

 

NOTICE OF WITHHOLDING ELECTION

RELATING TO STOCK OPTION EXERCISE

PURSUANT TO

GLOBAL AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN

 

	     
    	    Name:
    	     
    
	     
    	    Address:
    	     
    
	     
    	     
    
	     
    	    Date:
    	     
    

 

Global Aviation Holdings, Inc.

HLH Building

101 World Drive

Peachtree City, GA 30269

 

Attn:  Chief Executive Officer

 

This election relates to the Option identified in Paragraph 3 below.  I hereby certify that:

 

(1)                                  My correct name and social security number and my current address are set forth at the end of this document.

 

(2)                                  I am (check one, whichever is applicable).

 

o            the original recipient of the Option.

 

o            the legal representative of the estate of the original recipient of the Option.

 

o            the legal guardian of the original recipient of the Option.

 

(3)                                  The Option to which this election relates was issued with a Grant Date of                         , 2009 under the Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan (the “Plan”) in the name of                        for the purchase of a total of                    shares of Common Stock of the Company.  This election relates to                                shares of Common Stock issuable upon exercise of the Option, provided that the numbers set forth above shall be deemed changed as appropriate to reflect the applicable Plan provisions.

 

(4)                                  In connection with any exercise of the Option with respect to the Common Stock, I hereby elect:

 

o                                    to have certain of the shares issuable pursuant to the exercise withheld by the Company for the purpose of having the value of the shares applied to pay federal, state, and local, if any, taxes arising from the exercise.

 

1

 

o                                    to tender shares held by me for a period of at least six (6) months prior to the exercise of the Option for the purpose of having the value of the shares applied to pay such taxes.

 

The shares to be withheld or tendered, as applicable, shall have, as of the date the option is exercised, a Fair Market Value equal to the minimum statutory tax withholding requirement under federal, state, and local law in connection with the exercise.

 

(5)                                  This Withholding Election is made no later than the Tax Date and is otherwise timely made pursuant to the Plan.

 

(6)                                  I understand that this Withholding Election may not be revised, amended or revoked by me.

 

(7)                                  The Plan has been made available to me by the Company.  I have read and understand the Plan and I have no reason to believe that any of the conditions to the making of this Withholding Election have not been met.

 

(8)                                  Capitalized terms used in this Notice of Withholding Election without definition shall have the meanings given to them in the Plan.

 

 

	    Dated:
    	     
    	     
    	     
    
	     
    	     
    	    Signature
    
	     
    	     
    	     
    
	     
    	     
    	     
    
	    Social Security Number
    	     
    	    Name (Printed)
    
	     
    	     
    	     
    
	     
    	     
    	     
    
	     
    	     
    	    Street Address
    
	     
    	     
    	     
    
	     
    	     
    	     
    
	     
    	     
    	    City, State, Zip Code
    

 

2

 

SCHEDULE 1

VESTING SCHEDULE

NONQUALIFIED STOCK OPTION AWARD

ISSUED PURSUANT TO THE

GLOBAL AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN

 

A.                                   The Option Shares shall become vested Option Shares following the completion of a number of continuous years of service as an employee, director, or any other type of service provider of the Company or any Affiliate after the Grant Date as indicated in the schedule below.

 

	    Percentage of Option Shares
    Which are Vested Shares
    	     
    	    Years of Service After
    the Grant Date
    
	     
    	     
    	     
    
	    33 1/3%
    	     
    	    1
    
	    66 2/3%
    	     
    	    2
    
	    100%
    	     
    	    3
    

 

B.                                     Notwithstanding Part A, the Option will be fully vested on the effective date of a Change in Control.

 

C.                                     For purposes of the Vesting Schedule, Participant shall be granted a year of service for each twelve-consecutive-month period following the Grant Date during which the employment or any other service relationship between the Participant and the Company and its Affiliates continues.  No credit will be given for completion of a partial year of service and no period of time following the Participant’s Termination of Employment and/or any other service relationship(s) with the Company (including all Affiliates) shall count towards the vesting of Option Shares.

 

1

 

SCHEDULE 2

 

Outstanding Equity Rights

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]