Document:

SEPARATION
AGREEMENT AND GENERAL RELEASE

 

THIS
SEPARATION AGREEMENT AND GENERAL RELEASE (this “Agreement”) is dated as of November 12, 2019, by and between MICHAEL
D. HERSHBERGER (“Executive”) and HEALTH INSURANCE INNOVATIONS, INC., a Delaware corporation (the “Company”).
The Company and Executive are hereinafter collectively referred to as the “parties.”

 

RECITALS

 

A.
Executive is employed by the Company pursuant to the Second Amended and Restated Employment Agreement, dated September 16, 2015,
as amended on June 14, 2019 (as amended, the “Employment Agreement”), between Executive and the Company.

 

B.
Executive’s employment with the Company will terminate in a Termination Without Cause (as defined in the Employment Agreement)
effective December 31, 2019.

 

C.
Executive and the Company desire to hereby set forth certain matters relating to Executive’s departure from the Company.

 

NOW
THEREFORE, in consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, do hereby agree as follows:

 

TERMS

 

1.
Recitals; Certain Definitions. The Recitals are true and correct and are incorporated into this Agreement. Capitalized
terms appearing in this Agreement and not otherwise defined herein shall have the meanings set forth in the Employment Agreement.

 

2.
Termination of Employment. The parties agree that Executive’s employment with the Company will terminate effective
December 31, 2019 (the “Termination Date”) pursuant to Section 4(a)(iv) of the Employment Agreement. Beginning on
the date of this Agreement and continuing until 5:30 pm Eastern time on November 15, 2019, Executive will continue to perform
his duties under the Employment Agreement on a full-time basis and will continue to serve as the Chief Financial Officer, Treasurer,
and Secretary of the Company. During the period of time between 5:30 pm Eastern time on November 15, 2019 and December 31, 2019
(the “Transition Period”), Executive will be available by phone and/or email during regular business hours to respond
to questions and participate in meetings, provided that Executive shall work from his home during the Transition Period unless
otherwise requested by the Company upon reasonable advance notice to come to the Company’s offices. Any material breach
of Executive’s obligations under this Section 2 shall be considered a material breach of this Agreement and will, upon written
notice by the Company to Executive, immediately convert Executive’s termination to a Termination For Cause (as defined in
the Employment Agreement) pursuant to Section 4(a)(iii) of the Employment Agreement and be treated in the manner set forth in
Section 4(b)(ii) of the Employment Agreement notwithstanding the provisions of this Agreement, but only in the event that Executive
has failed to cure such breach, if curable, within 15 days of written notice from the Company specifying the breach. Executive hereby
resigns, effective as of 5:30 pm Eastern time on November 15, 2019 from all corporate offices and directorships Executive holds
with Company and any subsidiary or affiliate of the Company, including, without limitation, Executive’s positions as Chief
Financial Officer, Treasurer, and Secretary of the Company. Executive agrees that Executive’s resignation in the immediately
preceding sentence is not a “Resignation for Good Reason” within the meaning of the Employment Agreement. The parties
agree that the Employment Agreement shall be terminated as of the date hereof, except to the extent specifically provided herein.

 

    	 

    	 

    

 

3.
Severance Compensation. Executive shall continue to receive his base salary and health benefits, net of applicable tax
and other withholdings, during the Transition Period and will receive the Accrued Salary (as defined in the Employment Agreement)
as of the Termination Date on the next regular payroll date following the Termination Date during which the Accrued Salary would
otherwise be payable, net of required tax and other withholdings. Executive shall be entitled to the amount set forth in the preceding
sentence whether or not he revokes this Agreement. In addition, so long as Executive has not revoked this Agreement and commencing
seven (7) days after the date Executive signs and delivers to the Company the reaffirmation set forth on Exhibit A hereto,
the Company agrees to make the following payments to Executive pursuant to the terms and conditions set forth below (the “Separation
Benefits”), and Executive will be entitled to no other payments or benefits:

 

a.
Executive shall receive post-termination compensation in the amount and in accordance with the terms set forth in Section 4(b)(iii)(D)
of the Employment Agreement, net of applicable tax withholdings and other required withholdings (with the Termination Date herein
being deemed to be the “Termination Date” for purposes of said Section 4(b)(iii)(D)).

 

b.
Executive shall be entitled to an additional payment equal to $210,000 in satisfaction of the obligation to pay Accrued Bonus
(as defined in the Employment Agreement) contemplated by Section 4(b)(iii)(C) of the Employment Agreement, such payment to be
made within fifteen (15) days of the Termination Date, net of applicable tax withholdings and other required withholdings.

 

4.
Equity Awards. The Company and Executive agree that Executive’s outstanding equity awards under the Company’s
Long Term Incentive Plan (the “LTI Plan”) shall be treated in the following manner:

 

a.
As of the date of this Agreement, Executive holds 10,000 stock appreciation rights (“SARs”) pursuant to a Stock Appreciation
Rights Award Agreement dated May 21, 2014. The Company agrees that all such SARs are vested and, notwithstanding Section 2(d)(v)
of Attachment A to the Stock Appreciation Rights Award Agreement, shall be exercisable for a period of one year after the Termination
Date, provided that such SARs shall otherwise continue to be governed by the terms and conditions of the LTI Plan and such Stock
Appreciation Rights Award Agreement.

 

b.
As of the date of this Agreement, Executive holds 15,000 SARs pursuant to a Stock Appreciation Rights Award Agreement dated July
1, 2015. The Company agrees that such SARs are all vested and shall be exercisable for a period of one year after the Termination
Date in the manner described in Section 2(d)(ii) of Attachment A to such Stock Appreciation Rights Award Agreement, provided that
such SARs shall otherwise continue to be governed by the terms and conditions of the LTI Plan and such Stock Appreciation Rights
Award Agreement (including the provisions for expiration of awards set forth therein).

 

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c.
As of the date of this Agreement, Executive holds 22,500 SARs pursuant to a Stock Appreciation Rights Award Agreement dated September
16, 2015. The Company agrees that such SARs are all vested and shall be exercisable for a period of one year after the Termination
Date in the manner described in Section 2(d)(ii) of Attachment A to such Stock Appreciation Rights Award Agreement, provided that
such SARs shall otherwise continue to be governed by the terms and conditions of the LTI Plan and such Stock Appreciation Rights
Award Agreement (including the provisions for expiration of awards set forth therein).

 

d.
As of the date of this Agreement, Executive holds 40,972 SARs pursuant to a Stock Appreciation Rights Award Agreement dated September
16, 2016. The Company agrees that such SARs are all vested and shall be exercisable for a period of one year after the Termination
Date in the manner described in Section 2(d)(ii) of Attachment A to such Stock Appreciation Rights Award Agreement, provided that
such SARs shall otherwise continue to be governed by the terms and conditions of the LTI Plan and such Stock Appreciation Rights
Award Agreement (including the provisions for expiration of awards set forth therein).

 

e.
As of the date of this Agreement, Executive holds 11,000 unvested Restricted Shares pursuant to a Restricted Stock Award Agreement
dated June 14, 2017. The Company agrees that 5,500 of such unvested Restricted Shares shall vest on December 31, 2019, but only
if Executive has complied with the provisions of this Agreement and the Employment Agreement through and including December 31,
2019 (and otherwise such shares shall be forfeited as of December 31, 2019). The Executive agrees that the remaining 5,500 unvested
Restricted Shares are hereby forfeited and not subject to vesting.

 

f.
Executive is a party to a Performance Share and Restricted Stock Award Agreement dated June 14, 2017 (the “Performance Share
Agreement”), and under such agreement, (i) Executive was granted 22,000 Restricted Shares on March 29, 2018 (the “First
Performance Shares”), and (ii) Executive was granted 22,000 Restricted Shares on March 29, 2019 (the “Second Performance
Shares”). As of the date of this Agreement, 11,000 First Performance Shares have vested, 11,000 First Performance Shares
are unvested, and all 22,000 Second Performance Shares are unvested. The Company hereby agrees that the 11,000 unvested First
Performance Shares and 11,000 Second Performance Shares shall vest on December 31, 2019, but only if Executive has complied with
the provisions of this Agreement and the Employment Agreement through and including December 31, 2019 (and otherwise such shares
shall be forfeited as of December 31, 2019). Subject to the foregoing, Executive agrees that the Performance Share Agreement shall
be deemed terminated as of the date of this Agreement and that Executive holds no further rights or benefits thereunder. Executive
further agrees that 11,000 Second Performance Shares are hereby forfeited and not subject to vesting.

 

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g.
With respect to the restricted shares that vest on December 31, 2019 pursuant to foregoing clauses “e” and “f”,
Executive will be given the opportunity to satisfy applicable tax withholdings through the withholding and forfeiture of restricted
shares in a manner consistent with the Company’s past practice.

 

5.
Survival of Certain Obligations. Notwithstanding the termination of the Employment Agreement, the obligations, covenants,
and restrictions set forth in Section 5, Section 17, Section 18, and Section 19 of the Employment Agreement (as well as any other
sections of the Employment Agreement that relate to the enforcement or interpretation of said sections) shall continue to remain
in full force in effect at all times hereafter and after the Termination Date in accordance with and subject to the terms and
provisions of such sections. In addition, Executive will continue to comply at all times with the Company’s Insider Trading
Policy. In the event that the Executive commits a material breach of Section 5 or Section 18 of the Employment Agreement, then
the Company may discontinue paying the Severance Benefits provided herein, unless the breach is curable and the Executive fails
to cure said breach within 15 days of written notice of breach by the Company.

 

6.
No Claim for Additional Compensation or Injury. Executive agrees that Executive has been paid all amounts owed to Executive
under the Fair Labor Standards Act (“FLSA”), that Executive has received all FMLA leave to which Executive is entitled
and that none of Executive’s rights under the FLSA and FMLA have been violated. Executive also represents that Executive
is not aware of any conduct that Executive believes would constitute fraud, any accounting or financial improprieties, or any
conduct that would be unlawful under Sarbanes-Oxley, Dodd-Frank, or any other similar statute or Company policy. Executive agrees
that Executive has not suffered any on the job injury for which Executive has not already filed a claim.

 

7.
Release and Waiver of Claims. In consideration for the payments and other benefits provided for under this Agreement and
the Employment Agreement, Executive hereby unconditionally and irrevocably releases and forever discharges the Company and all
past and present parents, successors in interest and assigns, affiliates, subsidiaries, divisions, departments, wholly-owned corporations
or partnerships, business associations, sole proprietorships, insurers and its current or former officers, agents, representatives,
attorneys, fiduciaries, administrators, directors, stockholders, members, partners, or employees, in both their individual and
official capacities (herein collectively referred to as “Released Parties”) of and from, and agrees not to sue and
not to assert against them any causes of action, claims and demands whatsoever, known or unknown, at law, in equity, or before
any agency or commission of local, state and federal governments, arising, alleged to have arisen, or which might have been alleged
to have arisen, or which may arise under any law including, but not limited to, the Civil Rights Act of 1886, 1871, 1964, and
1991; 42 U.S.C. Section 1981; the Age Discrimination in Employment Act; the Equal Pay Act; the Employee Retirement Income Security
Act; the Americans with Disabilities Act; the Family and Medical Leave Act; the National Labor Relations Act; the Immigration
Reform and Control Act of 1986; the Worker Adjustment Retraining and Notification Act; the Occupational Safety and Health Act;
the Consolidated Omnibus Budget Reconciliation Act; the Florida Civil Rights Act of 1992; the Florida Minimum Wage Act; Genetic
Information Nondisclosure Act, the Florida Whistle-Blower’s Act; Sections 440.205 and 448.101-105, Florida Statutes, and
any other statutory, common law, or public policy claim, whether in tort (including without limitation any claim for assault,
battery, intentional infliction of emotional distress, invasion of privacy, negligence, or negligent hiring, retention, or supervision)
or contract; whether federal, state, or local; whether at law or in equity; including attorney fees, costs, and expenses, to the
date of this Agreement. Executive expressly intends this release to reach to the maximum extent permitted by law.

 

    	4

    	 

    

 

Notwithstanding
the foregoing, nothing herein shall release the Company of its obligations to Executive under the Employment Agreement, under
the Indemnification Agreement, dated as of September 16, 2015 (the “Indemnification Agreement”) between the Company
and Executive, for any vested benefits under any employee benefit plan, or any other contractual obligations between the Company
or its subsidiaries or affiliates and Executive, or any indemnification obligations to Executive under the Indemnification Agreement,
the Company’s certificate of incorporation, bylaws, operating agreement or other constituent document or any federal, state
or local law or otherwise.

 

8.
Challenge to Enforceability. Executive agrees not to challenge the enforceability of any provision of this Agreement in
any court of competent jurisdiction or arbitration, except as to validity under the Age Discrimination in Employment Act of 1967.
Executive understands that nothing contained in this Agreement limits Executive’s ability to file a charge or complaint
with the Equal Employment Opportunity Commission (“EEOC”), the National Labor Relations Board, the Occupational Safety
and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or
commission (“Government Agencies”). Executive further understands that this Agreement does not limit Executive’s
ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted
by any Government Agency, including providing documents or other information, without notice to the Company. This Agreement does
not limit Executive’s right to receive an award for information provided to any Government Agencies. Nothing in this Agreement
shall prevent Executive’s participation in any legal proceedings against the Company or any Released Party in compliance
with a summons that requires such participation, or Executive’s initiation of or participation in administrative proceedings
or investigations of the EEOC or other Government Agencies; provided, however, that this Agreement shall prevent Executive from
receiving any monetary or financial damages or recoveries from the Company or any Released Party or reinstatement with the Company
in connection with any such proceedings or investigations which is not based on recovering or receiving an award paid by a Government
Agency. Executive represents that Executive has not filed or asserted any claims whatsoever against the Company or any Released
Party. Executive is not aware of any conduct by the Company or any Released Party that may violate any federal, state or local
law, rule or regulation.

 

9.
Defend Trade Secrets Act Disclaimer.

 

a.
Nothing in this Agreement is intended to discourage or restrict Executive from reporting any theft of trade secrets pursuant to
the Defend Trade Secrets Act of 2016 (the “DTSA”) or other applicable state or federal law. The DTSA prohibits retaliation
against an employee because of whistleblower activity in connection with the disclosure of trade secrets, so long as any such
disclosure is made either (i) in confidence to an attorney or a federal, state, or local government official and solely to report
or investigate a suspected violation of the law, or (ii) under seal in a complaint or other document filed in a lawsuit or other
proceeding.

 

    	5

    	 

    

 

b.
If Executive believes that any employee or any third party has misappropriated or improperly used or disclosed trade secrets or
Confidential Information, Executive should report such activity to the Company’s Chief Financial Officer. This Agreement
is in addition to and not in lieu of any obligations to protect the Company’s trade secrets and Confidential Information
which otherwise exist. Nothing in this Agreement shall limit, curtail or diminish the Company’s statutory rights under the
DTSA, any applicable state law regarding trade secrets or common law.

 

10.
Governing Law; Venue. This Agreement shall be subject to and governed by the laws of the State of Florida, without giving
effect to the principles of conflicts of law under Florida law that would require or permit the application of the laws of a jurisdiction
other than the State of Florida and irrespective of the fact that the parties now or at any time may be residents of or engage
in activities in a different state. Executive agrees that in the event of any dispute or claim arising under this Agreement, jurisdiction
and venue shall be vested and proper, and Executive hereby consents to the jurisdiction of any court sitting in Tampa, Florida,
including the United States District Court for the Middle District of Florida.

 

11.
Legal Fees. In the event of any controversy arising under or relating to the interpretation or implementation of this Agreement,
or the breach thereof, the prevailing party will be entitled to attorneys’ fees and costs for any trial and appellate proceedings.

 

12.
Entire Agreement. This Agreement incorporates the entire understanding among the parties with respect to the subject matter
hereof. In reaching the agreements in this Agreement, neither party has relied upon any representation or promise, oral or written,
except those set forth herein. This Agreement has been duly authorized by the parties, and duly executed on behalf of each party
by the duly authorized officers or principals and in the manner required by all laws and regulations applicable to each such entity.

 

13.
Section 409A; Recoupment. The provisions of Section 16 of the Employment Agreement shall apply to the payments set forth
in this Agreement. Section 19 of the Employment Agreement shall survive the termination of the Employment Agreement and shall
continue to remain in full force and effect.

 

14.
Counterpart Signatures. This Agreement may be executed in one or more counterparts, and by the parties in separate counterparts,
each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same
agreement. The parties further agree that facsimile signatures or signatures scanned into .pdf (or similar) format and sent by
e-mail shall be deemed original signatures.

 

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15.
Assignment. This Agreement shall be binding upon and inure solely to the benefit of each party identified herein, and nothing
in this Agreement, express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement. The Company may assign this Agreement to any successors (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to the business and/or assets of the Company.

 

16.
Confidentiality. So long as no party to this Agreement has a reasonable basis to believe that another party to this Agreement
is violating or preparing to violate the terms of this Agreement, except as required by any governmental or quasi-governmental
entity (including but not limited to required filings with the Securities and Exchange Commission), the parties agree that this
Agreement, its terms and provisions and all correspondence and discussions related to this Agreement, shall be kept privileged
and strictly confidential by each party from the date hereof into the future; provided, however, (a) Executive may disclose this
information to her immediate family, tax advisors and accountants and (b) the Company shall be permitted to advise any party it
believes to be a prospective employer of Executive as to the dates of Executive’s employment with the Company and Executive’s
last position held with the Company, in accordance with Company policy.

 

17.
Severability. In the event any provision of this Agreement shall be held invalid or unenforceable, it shall be deemed modified,
only to the extent necessary to make it lawful. To effect such modification, the said provision shall be deemed deleted, added
to and/or rewritten, whichever shall most fully preserve the intentions of the parties as originally expressed herein.

 

18.
Voluntary Execution. Executive represents that Executive has read this Agreement in its entirety and that Executive has
had the opportunity to consult with legal counsel prior to signing this Agreement, and that Executive is fully aware of its contents
and of its legal effect. Executive signs this Agreement of Executive’s own free will and act, without any legal reservations,
duress, coercion or undue influence, and it is Executive’s intention that Executive be legally bound hereby.

 

19.
Period to Consider and Revoke. Executive acknowledges that Executive was offered the opportunity to consider this Agreement
for a period of twenty-one (21) days from the time Executive received it on November 11, 2019 and is hereby advised to review
it with an attorney of Executive’s choice. This Agreement does not become effective until seven (7) days after the date
Executive signs this Agreement and provides the Company with an original thereof. Executive can revoke the Agreement at any time
during that seven-day period (the “Revocation Period”).

 

20.
Acceptance and/or Revocation. IMPORTANT NOTICE TO EXECUTIVE: You may accept this Agreement by signing it and returning
it to the Company. You may exercise your right to revoke your decision to sign this Agreement by sending a written notice of revocation
to the individual and address specified below by no later than the last day of the Revocation Period:

 

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Health
Insurance Innovations, Inc.

Attention:
Chief Executive Officer

15438
N. Florida Avenue, Suite 201

Tampa,
Florida 33613

Fax:
(877) 376-5832

 

If
you exercise your right to revoke, your termination of employment shall be deemed to be a “Resignation Without Good Reason”
under the Employment Agreement, in which case Executive shall only receive the compensation and benefits described in Section
4(b)(iv) of the Employment Agreement.

 

[The
next page is the signature page]

 

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IN
WITNESS WHEREOF, the parties have duly executed this Separation Agreement and General Release as of the date first written above.

 

COMPANY:

 

HEALTH
INSURANCE INNOVATIONS, INC.

 

	By:	/s/
    Gavin D. Southwell	 
	Name:	Gavin
    D. Southwell	 
	Its:	Chief
    Executive Officer	 

 

EXECUTIVE:

 

	MICHAEL
    D. HERSHBERGER	 
	 	 
	/s/
    Michael D. Hershberger	 
	Michael
    D. Hershberger, individually	 
	 	 
	Date
    of Signature: November 12, 2019	 

 

    	9

    	 

    

 

EXHIBIT
A

 

FORM
OF REAFFIRMATION

 

    	 

    	 

    

 

REAFFIRMATION

Not
to be signed before January 1, 2020

 

Reference
is hereby made to the Separation and General Release, dated November 12, 2019 (the “Separation Agreement”), between
Health Insurance Innovations, Inc. and Michael D. Hershberger. The undersigned hereby agrees and affirms that, as a condition
to receiving the Separation Benefits (as defined in the Separation Agreement), the undersigned hereby reaffirms and recommits
to adhere to all of the obligations, covenants, releases, and waivers contained in the Separation Agreement.

 

	 	 
	Michael
    D. Hershberger, individually	 
	 	 
	Dated:________________,
    2020Blueprint

 

FIRST AMENDMENT OF
FORBEARANCE AGREEMENT AND

 

FIRST
AMENDMENT TO CREDIT AGREEMENT

 

THIS
FIRST AMENDMENT OF FORBEARANCE AGREEMENT AND FIRST AMENDMENT TO
CREDIT AGREEMENT (this “Amendment”) dated as of
November 13,
2019, is entered into by and among AEROCENTURY CORP., a Delaware
corporation (“Borrower”), the
Guarantors (defined below), the Lenders (defined below) and
MUFG UNION BANK, N.A., a
national banking association, as administrative agent for the
Lenders (in such capacity, “Agent”), with reference
to the following facts:

 

RECITALS

 

A.           On
or about October 28, 2019, Borrower, JetFleet Holding Corp., a
California corporation (“Holding Guarantor”), and
JetFleet Management Corp., a California corporation
(“Management
Guarantor” and together with Holding Guarantor,
collectively the “Guarantors”), on the one
hand, and the Administrative Agent and the lenders (the
“Lenders”) parties to the
Third Amended and Restated Credit Agreement dated as of February
19, 2019 executed by and among Borrowers, Lenders and the
Administrative Agent (as amended, extended, renewed, supplemented
or otherwise modified from time to time, the “Credit Agreement”),
entered into that certain Forbearance Agreement dated as of
October 28, 2019 (the “Forbearance
Agreement”).

 

B.           Pursuant
to the Forbearance Agreement, (i) Agent and the Lenders agreed
to temporarily forbear from exercising the Enforcement Actions as a
result of the occurrence and continuance of the Specified Defaults
described therein and (ii) MUFG Bank, Ltd.
(“MUFG
LTD”) agreed to temporarily forbear from exercising
Termination Rights as a result of such Specified Defaults. The
Forbearance Period under the Forbearance Agreement expires at 11:59
p.m. (New York City time) on November 13, 2019.

 

C.           Additionally,
the Forbearance Agreement provided a one-time limited waiver of
certain provisions of the Credit Agreement (defined in the
Forbearance Agreement as “Specified Requirements”),
pursuant to which Borrower was permitted to reborrow on
October 29, 2019 a LIBOR Loan under the Credit Agreement in
the principal amount of $36,900,000, notwithstanding the Specified
Defaults.

 

D.           Additional
LIBOR Loans under the Credit Agreement will become due and payable
on Payment Dates occurring during the Forbearance Period. As a
result of the Specified Defaults, Borrower is not able to reborrow
such Loans as LIBOR Loans without a temporary waiver of the
Specified Requirements with respect to such Loans.

 

E.           Borrower
and Guarantors have requested that Agent, Lenders and MUFG LTD
amend the Forbearance Agreement to (i) extend the Forbearance
Period, and (ii) provide for a temporary limited waiver of the
Specified Requirements with respect to the LIBOR Loans reborrowed
during the Forbearance Period. Agent, the Lenders and MUFG LTD are
willing to do so on the terms and conditions set forth in this
Amendment. MUFG LTD is entering into this Amendment with respect to
Section 4(a)(i) of the
Forbearance Agreement as amended hereby.

 

F.           Lenders
have agreed to make certain modifications to the Credit Agreement
on the terms set forth herein.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereby agree
as follows:

 

AGREEMENT

 

1. Incorporation of Recitals. Each
of the above Recitals is incorporated herein as true and correct in
all material respects and is relied upon by Agent and the Lenders
in agreeing to the terms of this Amendment.

 

2. Defined Terms. Any and all
initially-capitalized terms used in this Amendment (including,
without limitation, in the Recitals to this Amendment), without
definition shall have the respective meanings specified in the
Forbearance Agreement and/or Credit Agreement, as
applicable.

 

3. Acknowledgments. Borrower and
Guarantors each restates and reaffirms the acknowledgments each
made in Section 3 of the
Forbearance Agreement as of the First Extension Effective Date as
such term is defined in Section 6 hereof. Except
as expressly set forth herein, all terms, conditions, covenants,
representations and warranties contained in the Forbearance
Agreement, the Credit Agreement, the other Loan Documents and all
rights of Agent and the Lenders and all obligations of Borrower and
the Guarantors thereunder, remain in full force and effect. Each of
Borrower and the Guarantors hereby confirm that the Forbearance
Agreement, the Credit Agreement, the other Loan Documents and the
Collateral Documents are in full force and effect.

 

4. Extension of Forbearance Period;
Limited Waiver.

 

(a) Extension. Section 4(a)(i) of the
Forbearance Agreement is hereby amended to read as
follows:

 

“(i)            

11:59 p.m. (New
York City time) on December 12, 2019;”

 

(b) Limited Waiver. The provisions
of the Credit Agreement and the other Loan Documents to the
contrary notwithstanding, subject to the terms and conditions of
the Forbearance Agreement (as amended hereby) and as long as a
Forbearance Termination Event has not then occurred, Agent and the
Lenders hereby agree to a temporary limited waiver of the Specified
Requirements solely with respect to the reborrowing of LIBOR Loans
that become due and payable on Payment Dates during the Forbearance
Period, provided
that (i) the amount reborrowed for each such LIBOR Loan shall
not exceed the amount of such LIBOR Loan immediately before such
reborrowing, (ii) the LIBOR Loan Period applicable for such
reborrowing shall be fixed at one (1) month, and (iii) the
Applicable LIBOR Margin therefor shall be equal to
6.00%.

 

(c) Limited Effect of Waiver. The
waiver set forth in Section 4(b) above shall
be limited precisely as written and shall not be deemed (a) to be a
waiver of any other term or condition of the Credit Agreement or
the other Loan Documents, (b) to be a waiver of any Default or
Event of Default (including, without limitation, the Specified
Defaults), (c) to prejudice any right or remedy which Agent or
the Lenders may now have or may have in the future under or in
connection with the Credit Agreement or the other Loan Documents,
nor shall the entering into this Amendment or the Forbearance
Agreement (as amended hereby) preclude agent or the Lenders from
refusing to enter into any further waivers or amendments with
respect to the Credit Agreement or any other Loan Document,
(d) to be a consent to any future waiver under the Credit
Agreement or the other Loan Documents, or (e) to constitute a
course of dealing or other basis for altering any Obligations or
any other contract or instrument.

 

(d) Other Amendments. The title of
Section 5 of
the Forbearance Agreement currently reading “Reporting”
is hereby replaced with “Covenants” and the following
paragraphs are hereby added thereto immediately below paragraph (a)
thereof:

 

(b)            

Maintenance Report. Not later
than December 12, 2019, and on a monthly basis thereafter, Borrower
shall submit to Agent a six (6) month-rolling cash-basis forecast
of the maintenance cash disbursements related to the Collateral and
Excluded Assets (“Maintenance Expense
Report”). Each such Maintenance Expense Report shall
provide a breakdown forecast with respect to each item of such
assets and otherwise be in form and substance satisfactory to
Agent. With respect to each Maintenance Expense Report submitted
after the initial Maintenance Expense Report, Borrower shall submit
a variance report, on both a month-by-month basis and a cumulative,
monthly roll-forward basis through the end of the immediately
preceding month, comparing the actual cash disbursements to the
projected cash disbursements for such period.

 

(c)            

No New Loans. Other than with
respect to the reborrowing of a LIBOR Loan, Borrower shall not make
a request for a Loan.

 

5. Amendments to Credit Agreement.
The Credit Agreement shall be amendment as follow:

 

(a) The definitions of
“Revolving Commitment” and “Maximum Amount”
shall each be amended by replacing “One Hundred Forty-Five
Million and 00/100 Dollars ($145,000,000.00)” in the first
sentence thereof with “One Hundred Fifteen Million and 00/100
Dollars ($115,000,000.00)”.

 

(b) Section 2.18 of the Credit
Agreement shall be amended by replacing “One Hundred Sixty
Million and 00/100 Dollars ($160,000,000.00)” in the first
sentence thereof with “One Hundred Thirty Million and 00/100
Dollars ($130,000,000.00)”.

 

(c) All references to
“Revolving Commitment”, the “Maximum
Amount”, the “Revolving Loans” or such similar
terms describing the amount of the Credit Facility in the Credit
Agreement and the other Loan Documents shall be amended to be
references to such respective terms in the amount of
$115,000,000.

 

(d) Schedule A to the Credit
Agreement shall be amended and replaced with Schedule A attached
hereto.

 

6. Conditions Precedent. This
Amendment shall become effective on the date (the
“First Extension
Effective Date”) each of the following conditions
shall have been satisfied or waived by Agent in its sole
discretion:

 

(a) This Amendment. Agent shall
have received this Amendment, duly executed by Borrower, Guarantors
and the Lenders.

 

(b) No Default. Upon giving effect
to this Amendment, there shall be no Default or Event of Default
(other than the Specified Defaults).

 

7. Forbearance Extension Fee. In
consideration of the limited agreement of the Lenders to extend the
Forbearance Period as provided herein, Borrowing shall pay to Agent
for the account of the Lenders a forbearance extension fee in the
amount of $225,000, which fee shall be deemed fully earned and
non-refundable for any reason whatsoever and shall be due and
payable not later than December 12, 2019. Borrower hereby
authorizes Agent to deduct the forbearance extension fee from the
deposit account maintained with Agent ending with the last four
digits 0410.

 

8. General Release. Each of
Borrower and Guarantors, on behalf of itself and on behalf of its
Subsidiaries, successors, assigns, legal representatives and
financial advisors (collectively, the “Releasing Parties”),
hereby releases, acquits and forever discharges Agent, the Lenders
and each of their respective past and present directors, officers,
employees, agents, attorneys, affiliates, predecessors, successors,
administrators and assigns (the “Released Parties”) of and
from any and all claims, actions, causes of action, demands,
rights, damages, costs, loss of service, expenses and compensation
whatsoever heretofore or hereafter arising from any events or
occurrences, or anything done, omitted to be done, or allowed to be
done by any of the Released Parties, on or before the date of
execution of this Amendment, WHETHER KNOWN OR UNKNOWN, FORESEEN OR
UNFORESEEN, including, without limitation, any of the same arising
from or related to anything done, omitted to be done, or allowed to
be done by any of the Released Parties and in any way connected
with this Amendment, the Forbearance Agreement, or any of the Loan
Documents, any other credit facilities provided or not provided,
any advances made or not made, or any past or present deposit or
other accounts of any Releasing Party with any Released Party and
the handling of the same by any Released Party, including, without
limitation, the manner and timing in which items were deposited or
credited thereto or funds transferred therefrom or made available
to any of the Releasing Parties, the honoring or returning of any
checks drawn on any account, and any other dealings between the
Releasing Parties and the Released Parties (the “Released Matters”).
Releasing Parties each further agree never to commence, aid or
participate in (except to the extent required by order or legal
process issued by a court or governmental agency of competent
jurisdiction) any legal action or other proceeding based in whole
or in part upon the Released Matters. In furtherance of this
general release, Releasing Parties each acknowledge and waive the
benefits of California Civil Code Section 1542 (and all similar
ordinances and statutory, regulatory, or judicially created laws or
rules of any other jurisdiction), which provides:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR
RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE, AND THAT IF KNOWN BY
HIM OR HER WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.

 

Releasing Parties
each agree that this waiver and release is an essential and
material of this Amendment, and that the agreements in this
paragraph are intended to be in full satisfaction of any alleged
injuries or damages to or of any Releasing Parties in connection
with the Released Matters. Each Releasing Party represents and
warrants that it has not purported to convey, transfer or assign
any right, title or interest in any Released Matter to any other
person or entity and that the foregoing constitutes a full and
complete release of the Released Matters. Releasing Parties each
also understand that this release shall apply to all unknown or
unanticipated results of the transactions and occurrences described
above, as well as those known and anticipated. Releasing Parties
each have consulted with legal counsel prior to signing this
release, or had an opportunity to obtain such counsel and knowingly
chose not to do so, and each Releasing Party executes such release
voluntarily, with the intention of fully and finally extinguishing
all Released Matters.

 

9. Miscellaneous.

 

(a) Notices. All notices and
requests in connection with this Amendment, the Forbearance
Agreement or the Credit Agreement (notwithstanding Section 12.7.1 thereof) to
Borrower or Agent shall be sufficiently given or made if given or
made in writing via hand delivery, overnight courier, U.S. Mail
(postage prepaid) or email, and addressed as follows:

 

(1) If to
Borrower:

 

AeroCentury
Corp.

1440
Chapin Avenue, Suite 310

Burlingame, CA
94010-4011

Email:
toni.perazzo@aerocentury.com

    chris.tigno@aerocentury.com

 

(2) If to
Agent:

 

MUFG
Union Bank, N.A.

Special
Assets Division

Attn:
Christopher Petrocelli

 John
Lilly

1221
Avenue of Americas, 7th Floor

New
York, NY 10020

Email:
CPetrocelli@us.mufg.jp

 

   JLilly@us.mufg.jp

 

and:

 

Sheppard Mullin
Richter & Hampton LLP

Four
Embarcadero Center, 17th Floor

San
Francisco, CA 94111-4106

Attn:
Juliette M. Ebert

  Richard
Brunette

  Robert
Sahyan

Email:
JEbert@sheppardmullin.com

    RBrunette@sheppardmullin.com

    RSahyan@sheppardmullin.com

 

(b) Survival of Representations and
Warranties. All representations and warranties made in the
Credit Agreement or in any other document or documents relating
thereto, including, without limitation, any Loan Document furnished
in connection with this Amendment, shall survive the execution and
delivery of this Amendment and the other Loan Documents, and no
investigation by Agent or any Lender or any closing shall affect
the representations and warranties or the right of Agent and
Lenders to rely thereon.

 

(c) Agreement as Loan Document.
This Amendment and the Forbearance Agreement (as amended hereby)
shall each constitute a Loan Document under the Credit Agreement.
Any provision of any Loan Document which applies to Loan Documents
generally shall apply to this Amendment and the Forbearance
Agreement (as amended hereby). It shall be an immediate Event of
Default under the Credit Agreement if Obligor breaches any covenant
contained herein or in the Forbearance Agreement (as amended
hereby) or if any representation or warranty contained herein or in
the Forbearance Agreement (as amended hereby) proves to be
inaccurate or untrue in any material respect. Except as expressly
provided herein, the Credit Agreement and the other Loan Documents
shall be unmodified and shall continue to be in full force and
effect in accordance with their terms and are hereby in all
respects ratified and confirmed.

 

(d) Review And Construction Of
Documents. Each party hereto hereby acknowledges, and
represents and warrants to the other parties hereto,
that:

 

(i) it has had the
opportunity to consult with legal counsel of its own choice and has
been afforded an opportunity to review this Amendment and the
Forbearance Agreement (as amended by this Amendment) with legal
counsel;

 

(ii) it
has carefully reviewed this Amendment and the Forbearance Agreement
(as amended by this Amendment) and fully understands all terms and
provisions of this Amendment and the Forbearance Agreement (as
amended by this Amendment);

 

(iii) it
has freely, voluntarily, knowingly, and intelligently entered into
this Amendment and the Forbearance Agreement (as amended by this
Amendment) of its own free will and volition;

 

(iv) none
of the Lenders or Agent have a fiduciary relationship with any
Obligor and the Obligor does not have a fiduciary relationship with
Agent or the Lenders, and the relationship between the Lenders or
Agent, on the one hand, and Obligor, on the other hand, is solely
that of creditor and debtor; and

 

(v) no joint venture
exists among Obligor and the Lenders or Agent.

 

(e) Severability. Any provision of
this Amendment held by a court of competent jurisdiction to be
invalid or unenforceable shall not impair or invalidate the
remainder of this Amendment, and the effect thereof shall be
confined to the provision so held to be invalid or
unenforceable.

 

(f) APPLICABLE LAW. THIS AMENDMENT,
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO, SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(g) WAIVER OF JURY TRIAL. EACH
PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AMENDMENT,
THE FORBEARANCE AGREEMENT (AS AMENDED BY THIS AMENDMENT) OR ANY
OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

(h) Successors and Assigns. This
Amendment is binding upon and shall inure to the benefit of Agent,
Lenders and Obligor and their respective successors and assigns;
provided,
however, that
Obligor may not assign or transfer any of its rights or obligations
hereunder without the prior written consent of Agent and Lenders.
The execution and delivery of this Amendment by any Lender prior to
the First Extension Effective Date shall be binding upon its
successors and assigns and shall be effective as to any Loans or
Revolving Commitment assigned to such Lender after such execution
and delivery.

 

(i) Counterparts. This Amendment
may be executed in one or more counterparts, each of which when so
executed shall be deemed to be an original, but all of which when
taken together shall constitute one and the same instrument. An
executed signature page of this Amendment may be delivered by
facsimile transmission or electronic PDF of the relevant signature
page hereof.

 

(j) Headings. The headings,
captions and arrangements used in this Amendment are for
convenience only and shall not affect the interpretation of this
Amendment.

 

(k) Expenses of Agent and Lenders.
Borrower shall promptly pay all fees, costs, charges, expenses, and
disbursements of Agent incurred in connection with the preparation,
execution, and delivery of this Amendment, and the other documents
contemplated by this Amendment, including all legal fees and
expenses.

 

(l) Further Assurances. Obligor
agrees to execute, acknowledge, deliver, file and record such
further certificates, instruments and documents, and to do all
other acts and things, as may be reasonably requested by Agent and
necessary or reasonably advisable to carry out the intents and
purposes of this Amendment.

 

(m) Amendments. The provisions of
the Forbearance Agreement (as amended by this Amendment) may be
further amended or waived by an instrument in writing signed by
Borrower, the Lenders and Agent, provided that an amendment
limited to extending the Forbearance Period and/or granting a
further waiver of the Specific Requirements on similar conditions
hereof shall be effective pursuant to a writing signed by Agent, at
the direction of the Requisite Lenders, and Borrower.

 

(n) NO ORAL AGREEMENTS. THIS
AMENDMENT AND THE FORBEARANCE AGREEMENT EMBODIES THE FINAL, ENTIRE
AGREEMENT AMONG THE PARTIES HERETO REGARDING THE CREDIT
PARTIES’ FORBEARANCE WITH RESPECT TO THEIR RIGHTS AND
REMEDIES WHICH MAY ARISE AS A RESULT OF THE SPECIFIED EVENTS OF
DEFAULT AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS,
REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED
OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OR DISCUSSION OF THE PARTIES HERETO. THERE ARE NO ORAL
AGREEMENTS AMONG THE PARTIES HERETO.

 

 [signature pages follow]

 

	

SMRH:4835-8340-7020.5

	

-[Insert
Page Number]-

	
 

	
 

	
 

	
 

 

 

IN
WITNESS WHEREOF, the parties have entered into this Amendment by
their respective duly authorized officers as of the date first
above written.

 

BORROWER:

 

AEROCENTURY
CORP.,

a
Delaware corporation

 

 

By:            

_________________________

Name:
_________________________

Title:                       

_________________________

 

 

 

 

GUARANTORS:

 

JETLEET
HOLDING CORP.,

a
California corporation

 

 

By:            

_________________________

Name:
_________________________

Title:                       

_________________________

 

 

 

JETFLEET MANAGEMENT
CORP.,

a
California corporation

 

 

By:            

_________________________

Name:
_________________________

Title:                       

_________________________

 

 

	

SMRH:4835-8340-7020

	

S-7

	
 

	
 

	
 

	
 

 

 

ADMINISTRATIVE
AGENT:

 

 

MUFG
UNION BANK, N.A.

 

By:            

_________________________

 

Name:
_________________________

 

Title:                       

_________________________

 

 

 

 

	

SMRH:4835-8340-7020

	

S-7

	
 

	
 

	
 

	
 

 

 

MUFG LTD:

 

MUFG
BANK, LTD.

 

By:            

_________________________

 

Name:
_________________________

 

Title:                       

_________________________

 

	

SMRH:4835-8340-7020

	

S-7

	
 

	
 

	
 

	
 

 

 

LENDER:

 

UMPQUA
BANK

 

By:            

_________________________

Name:
_________________________

Title:                       

_________________________

 

 

	

SMRH:4835-8340-7020

	

S-7

	
 

	
 

	
 

	
 

 

 

LENDER:

 

ZIONS
BANCORPORATION, N.A. (fka ZB, N.A.) dba CALIFORNIA BANK AND
TRUST

 

By:            

_________________________

Name:
_________________________

Title:                       

_________________________

 

 

 

 

	

SMRH:4835-8340-7020

	

S-7

	
 

	
 

	
 

	
 

 

 

LENDER:

 

U.S.
BANK NATIONAL ASSOCIATION

 

By:            

_________________________

Name:
_________________________

Title:                       

_________________________

 

 

 

 

 

 

	

SMRH:4835-8340-7020

	

S-7

	
 

	
 

	
 

	
 

 

 

LENDER:

 

COLUMBIA STATE
BANK

 

By:            

_________________________

Name:
_________________________

Title:                       

_________________________

 

 

	

SMRH:4835-8340-7020

	

S-7

	
 

	
 

	
 

	
 

 

 

Schedule A

 

Revolving Commitment

 

	

Lender

 

	

Commitment

 

	

Pro Rata Share

 

	

MUFG
Union Bank, N.A.

 

	

$29,344,827.59

	

25.5172413793%

	

Umpqua
Bank

	

$27,758,620.69

	

24.1379310345%

	

Zions
Bancorporation, N.A. (fka ZB, N.A.) dba California Bank &
Trust

	

$23,793,103.45

	

20.6896551724%

	

U.S.
Bank National Association

	

$22,206,896.55

	

19.3103448276%

	

Columbia
State Bank

	

$11,896,551.72

	

10.3448275862%

	

TOTAL:

	

$115,000,000.00

	

100.0000000000%

 

 

 

 

 

 

	

SMRH:4835-8340-7020.5

	

Schedule
A

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