Document:

Exhibit 4.12

 

 

 

HYPOTHEC ON MOVABLES

 

dated as of August 27, 2003

 

by

 

WATER PIK TECHNOLOGIES CANADA, INC.

 

as Grantor

 

in favour of

 

JPMORGAN CHASE BANK, TORONTO BRANCH

and

BANK ONE, NA, CANADA BRANCH

 

as Canadian Lenders

 

JPMORGAN CHASE BANK

BANK ONE, NA

PNC BANK, NATIONAL ASSOCIATION

and

UNION BANK OF CALIFORNIA, N.A.

 

as Lenders

 

and

 

JPMORGAN CHASE BANK, TORONTO BRANCH

 

as Canadian Agent

 

and

 

JPMORGAN CHASE BANK

 

as Administrative Agent

 

 

* * *

Canadian Obligations

* * *

 

 

 

HYPOTHEC ON MOVABLES

 

THIS HYPOTHEC ON MOVABLES dated as
of August 27, 2003 is made by WATER PIK TECHNOLOGIES CANADA, INC. (the
“Grantor”), a corporation incorporated under the laws of Canada, in favour of
JPMORGAN CHASE BANK, TORONTO BRANCH, and BANK ONE, NA, CANADA BRANCH (individually,
a “Canadian Lender” and collectively, the “Canadian Lenders”), JPMORGAN CHASE
BANK, BANK ONE, NA, PNC BANK, NATIONAL ASSOCIATION, and UNION BANK OF
CALIFORNIA, N.A., (individually, a “Lender” and collectively, the “Lenders”),
and JPMORGAN CHASE BANK, TORONTO BRANCH (the “Canadian Agent”), as agent for
the Canadian Lenders, and JPMORGAN CHASE BANK (the “Administrative Agent”), as
agent for the Lenders.

 

RECITALS

 

A.  Pursuant to an Amended and
Restated Revolving Credit Agreement (as amended, supplemented or restated from
time to time, the “Credit Agreement”) dated as of August 27, 2003 among the
Borrowers, the Canadian Lenders, the Lenders, the Canadian Agent, the
Syndication Agent and the Administrative Agent, the Canadian Lenders and the
Lenders agreed to make certain credit facilities available to the Borrowers
upon the terms and subject to the conditions set forth therein.

 

B.  The Grantor is one of the
Borrowers.

 

C.   Pursuant to the Credit Agreement the Grantor
has agreed to grant security to the Secured Parties on certain of its assets.

 

NOW, THEREFORE, the parties hereby
agree as follows:

 

ARTICLE 1

 

INTERPRETATION

 

Section 1.1                                      Definitions

 

In this Hypothec, unless the context shall indicate otherwise, the
following terms shall have the following meanings:

 

“Accounts” means all accounts maintained from time to time by
the Grantor with any depositary, including any Secured Party, and all cheques,
wire transfers, deposits and other items deposited into the Accounts.

 

“Administrative Agent” has the meaning ascribed thereto in the
introductory paragraph to this Hypothec.

 

 

“Agents” means the Canadian Agent and the Administrative Agent.

 

“Canadian Agent” has the meaning ascribed thereto in the
introductory paragraph to this Hypothec.

 

“Canadian Lenders” has the meaning ascribed thereto in the
introductory paragraph to this Hypothec.

 

“Claims” means (i) any and all claims, advances, book debts,
accounts receivable and any other amounts or Property now or hereafter owing to
the Grantor by any person, either absolutely or conditionally, including all
claims and indemnities payable under insurance policies covering the same, (ii)
any and all Liens in support thereof, and (iii) any and all books, papers,
invoices, notes and data files evidencing, recording or supporting the same.

 

“Credit Agreement” has the meaning ascribed thereto in Recital A
to this Hypothec.

 

“Enterprise” has the meaning ascribed thereto in Article 1525 of
the Civil Code of Québec.

 

“Excluded Interests” means any machinery, equipment, rolling
stock, furniture or fixtures of the Grantor.

 

“Grantor” has the meaning ascribed thereto in the introductory
paragraph to this Hypothec.

 

“Hypothecated Property” means any and all property, rights and
interest, present and future, intended to be charged by the hypothecs created
under Article 2 hereof, all substitutions and replacements thereof, all
increases, additions and accessions thereto, all rights attaching thereto and
all proceeds in any form derived directly or indirectly from any dealing with
any of the foregoing or the proceeds therefrom.

 

“Intellectual Property” means the Enterprise of the Grantor and
all of its trade names, trade marks, copyrights, designs, processes, know how,
goodwill,
licences, franchises, permits, quotas, patents and other rights of
intellectual and industrial property of any nature and description, and all
pending applications pertaining thereto.

 

“Inventory” means, regardless of the situs thereof at any
particular time (i) all inventory of raw materials, goods in process, finished
products and stock in trade of any nature and description, whether or not the
same is held for let or hire, leasing, resale or otherwise, (ii) all goods and
materials used in or procured for the packaging thereof, (iii) any such
property held by third parties under let or hire, leasing, conditional sale,
franchise, licence, consignment or other like contractual arrangements with its
lawful owner, (iv) any such property sold by the Grantor and later taken back
for any reason, and (v) all amounts and proceeds paid or payable to or for the
account of the Grantor as a result of the sale, lease or other dealings with
any of the foregoing.

 

2

 

“Lenders” has the meaning ascribed thereto in the introductory
paragraph to this Hypothec.

 

“Secured Parties” means each Canadian Lender, the Canadian
Agent, each Lender, and the Administrative Agent.

 

“Specifically Hypothecated Property” means any Hypothecated
Property which, at any particular time and from time to time, is actually in
existence.

 

“Tangible Property” means any of the Specifically Hypothecated
Property which is corporeal.

 

Section 1.2                                      Credit Agreement Definitions

 

Subject to Section 1.1, capitalized terms used in this Hypothec,
including the recitals hereto, shall have the meanings ascribed thereto in the
Credit Agreement.

 

ARTICLE 2 

 

HYPOTHECS

 

Section 2.1                                      Conventional Hypothec

 

As security for the full and final payment of the Canadian Obligations,
the Grantor hereby hypothecates to and in favour of the Secured Parties to the
extent of the sum of CDN$150,000,000, with interest thereon at the rate of 25%
per annum, all of its movable property of every nature and description,
corporeal and incorporeal, present and future, and wherever situate, including:

 

(i)                                     all of its Accounts;

 

(ii)                                  all of its Claims;

 

(iii)                               all of its Intellectual Property; and

 

(iv)                              all of its Inventory,

 

but
excluding any Excluded Interests.

 

Section 2.2                                      Additional Hypothec

 

To guarantee the payment of all sums not secured by the principal
hypothec created hereinabove, and in particular, interest due for the current
and three preceding years, interest on the interest, and all other amounts
expended by the Secured Parties to protect their hypothecary claim, including,
but not limited to, insurance premiums, taxes, costs, and other accessories, an

 

3

 

additional hypothec is created by the Grantor against the Hypothecated
Property. Consequently, the Grantor hypothecates the Hypothecated Property in
favour of the Secured Parties for an additional amount equal to CDN$15,000,000,
together with interest thereon at a rate of 25% per annum calculated
semi-annually and not in advance.

 

ARTICLE 3 

 

REPRESENTATIONS AND WARRANTIES

 

Section 3.1                                      Representations and Warranties

 

The Grantor hereby represents and warrants that it carries on an
Enterprise.

 

ARTICLE 4 

 

COVENANTS

 

Section 4.1                                      Covenant

 

The Grantor covenants as follows:

 

(a)                                  The Grantor shall notify the Agents forthwith
of the existence of any Claims which are subject to the Financial Administration Act (Canada).

 

(b)                                 The Grantor shall notify the Agents in writing
not later than ten days after any of the Tangible Property is moved outside of
the Province of Québec on a permanent basis.

 

(c)                                  The Grantor shall refrain from mixing or
combining Tangible Property with other movable property belonging to third
parties, or from transforming the same, except in the normal course of the
Grantor’s Enterprise or unless consented to in writing by the Agents.

 

ARTICLE 5

 

SPECIAL PROVISIONS RELATIVE TO CLAIMS

 

Section 5.1                                      Authorization to Collect

 

The Secured Parties hereby authorize the Grantor to manage and collect
the Claims in the ordinary course of its business. Such authorization may
nevertheless be withdrawn by the Agents upon the occurrence of an Event of
Default, whereupon the Agents shall be free to do in the name of the Secured
Parties or in the name of the Grantor any of the following, without any
interference or consent on the part of the Grantor and without being bound (to
the fullest extent permitted by law) by the rules respecting the administration
of the property of others:

 

4

 

(i)                                     collect the Claims and apply such proceeds (net
of all collection costs and the reasonable remuneration of the Agents at the
customary rates) against the Canadian Obligations in such manner as it shall
deem appropriate;

 

(ii)                                   give valid acquittances for any sums paid by
third party debtors at any time after as well as before the creation of this
security, and unilaterally cause, with or without consideration, the
cancellation or reduction of any lien securing the Claims or any part thereof;
and

 

(iii)                                re-negotiate, terminate or novate the Claims in
whole or in part upon such terms and conditions as it shall deem reasonable,
take and give up security and generally exercise, but without any obligation to
do so and at their entire discretion, all rights of the Grantor with respect to
the Claims, it being understood that the Secured Parties are relieved of any
obligation to inform the Grantor of any irregularity in the payment of any
Claim and they shall incur no liability for any loss or damage which may result
from the exercise of their rights except in the case of their own intentional
or gross fault.

 

Section 5.2                                      Money Receive

 

Any amount received by the Grantor with respect to the Claims after a
withdrawal of authorization as aforesaid shall be deemed so received as
mandatory or depository of the Secured Parties and shall forthwith be remitted
to the Agents without demand or notice, the whole without prejudice to the
recourses of the Secured Parties against the third party debtors.

 

Section 5.3                                      Perfection of Hypothecary Rights

 

If any of the Claims are themselves secured by a lien or any other
right susceptible of publication under the law, the Secured Parties shall have
the right to accomplish, at the expense of the Grantor, all the formalities
required to perfect against the third party debtors the hypothecary rights of
the Secured Parties upon such Claims and accessories thereof.

 

ARTICLE 6 

 

EVENTS OF DEFAULT

 

Section 6.1                                      Event of Default

 

The hypothecary rights hereby constituted shall become enforceable upon
the occurrence of an Event of Default.

 

5

 

ARTICLE 7 

 

EXERCISE OF HYPOTHECARY RIGHTS

 

Section 7.1                                      Event of Default

 

Upon the occurrence of an Event of Default, the Grantor shall
immediately lose the benefit of the term inasmuch as it could claim any such benefit,
and the Secured Parties shall be entitled to terminate the Commitment in favour
of the Grantor and demand from the Grantor the immediate payment of the
Canadian Obligations or any part thereof and, failing receipt of such payment
within the specified period, the Secured Parties shall have the right to
request from the Grantor the voluntary surrender of the Specifically
Hypothecated Property and the Grantor hereby undertakes to do so. The Grantor
shall also execute any deed or document which may be necessary or useful to
evidence such surrender or to give it full effect.

 

Section 7.2                                      Exercise of Hypothecary Rights

 

(a)                                  The Secured Parties shall not be
bound to exercise the same hypothecary rights against all of the Hypothecated
Property. Whatever hypothecary rights the Secured Parties elect to exercise,
the provisions of this Section 7.2 shall apply:

 

(b)                                 The Secured Parties shall have the
right, at the expense of the Grantor and in order to conserve or realize upon
the Hypothecated Property:

 

(i)                                     to continue or terminate the use and operation
of the Specifically Hypothecated Property including the processing and sale of
the Inventory;

 

(ii)                                  to dispose of the Specifically Hypothecated
Property which may perish or deteriorate rapidly;

 

(iii)                               to use any information obtained by reason of
the exercise of their rights;

 

(iv)                              to perform any obligation or covenant of the
Grantor; and

 

(v)                                 to exercise any right with respect to the
Hypothecated Property.

 

(c)                                  The Secured Parties shall not be
bound to make an inventory, to take out insurance or to furnish any security.

 

(d)                                 The Secured Parties may acquire directly or
indirectly any of the Hypothecated Property.

 

(e)                                  The Secured Parties may from time to time in
the course of the exercise of their rights, renounce, with or without
consideration, any right of the Grantor.

 

6

 

(f)                                    The Secured Parties shall not be bound to make
the Hypothecated Property productive or to conserve the same.

 

(g)                                 Should the Secured Parties at any time abandon
the exercise of their rights, hypothecary or otherwise, against the
Hypothecated Property, the Secured Parties may elect, at their option, to
return to the Grantor without any representation or warranty, the Specifically
Hypothecated Property which the Grantor had surrendered to the Secured Parties,
or the remainder thereof if any, the whole without prejudice to their other
rights and recourses.

 

(h)                                 The Secured Parties shall be deemed to have
acted in the best interest of the Grantor and its successors if the Secured
Parties have acted in accordance with their standard methods of assessing and
managing financial risks in the ordinary course of their business.

 

Section 7.3                                      Taking in Payment

 

(a)                                  Where the Secured Parties exercise a right of
taking in payment and the Grantor, inasmuch as it has the right to do so,
requires that the Secured Parties sell the Hypothecated Property upon which
such recourse was exercised, the Grantor acknowledges that the Secured Parties
shall not be bound to abandon the right of taking in payment unless the Secured
Parties have obtained, before the end of the period allowed for surrender (i) a
satisfactory security guaranteeing that the sale will be made at a sufficiently
high price to enable the Secured Parties’ claim to be paid in full, (ii) the
full reimbursement of all costs thus incurred by them, and (iii) an advance of
the funds needed for the sale of the said properties.

 

(b)                                 If the Secured Parties themselves sell the
Specifically Hypothecated Property, they shall not be required to obtain any
prior appraisal thereof.

 

(c)                                  The sale by the Secured Parties of the
Specifically Hypothecated Property may be concluded by the Secured Parties
without legal warranty or, at their option, without any warranty whatsoever.

 

ARTICLE 8 

 

REDUCTION AND CANCELLATION

 

Section 8.1                                      Reduction and Cancellation

 

The Agents may, on behalf of the Secured Parties, consent to the
reduction or cancellation of the security hereby constituted. However, the
Agents shall not be bound to consent to any such reduction or cancellation
unless and until the Secured Parties have received the full and final payment
of all amounts hereby secured and there is no outstanding Commitment in favour
of the Grantor. Any such reduction or cancellation shall be at the expense of
the Grantor.

 

7

 

ARTICLE 9 

 

MISCELANEOUS

 

Section 9.1                                      Conflict

 

In the event that any provisions of this Hypothec contradict or are
otherwise incapable of being construed in conjunction with the provisions of
the Credit Agreement, the provisions of the Credit Agreement shall prevail over
those contained in this Hypothec and, in particular, if any act of the Grantor
is expressly permitted under the Credit Agreement but is prohibited under this
Hypothec, any such act shall be permitted under the Credit Agreement and shall
be deemed to be permitted under this Hypothec.

 

Section 9.2                                      No Novation

 

This Hypothec does not operate novation and the security hereby
constituted shall be in addition to any other guarantee or security which the
Secured Parties may have from time to time.

 

Section 9.3                                      No Waiver

 

The Secured Parties may grant extensions, take and give up security,
accept arrangements and otherwise deal with the Grantor or with any other party
as the Secured Parties may see fit, the whole without prejudice to the Canadian
Obligations or to any other right of the Secured Parties hereunder or
otherwise. No failure or delay on the part of the Secured Parties in exercising
any right hereunder shall operate as a waiver thereof nor shall any waiver be
effective unless the same be in writing.

 

Section 9.4                                      Continuing Security

 

(a)                                  This Hypothec is a continuing security which
will subsist notwithstanding any fluctuation of the amounts hereby secured. The
Grantor shall be deemed to obligate itself again as provided in Article 2797 of
the Civil
Code of Québec with respect to any future obligation hereby secured.

 

(b)                                 The Agents and the other Secured Parties shall
have the right, at the expense of the Grantor, to perform all acts and things
and to execute all documents as may be necessary to ensure that this security
remains effective and opposable to third parties, including the execution and
filing of any forms required for the renewal hereof from time to time.

 

(c)                                  Any amount received by the Secured Parties in
the exercise of their rights hereunder or under any law may, at their option,
be retained by them as part of the Hypothecated Property, or may be applied by
them towards the partial payment of the Canadian Obligations, even if not yet
exigible, as the Secured Parties shall alone determine notwithstanding the
rules governing the application of payments.

 

8

 

Section 9.5                                      Exercise of Rights by Secured Parties

 

(a)                                  The Secured Parties are not bound by any degree
of care beyond a reasonable diligence in the exercise of their rights or in the
performance of their duties, and they shall not be liable for any loss or
damage resulting therefrom except as a result of their own intentional or gross
fault.

 

(b)                                 The Secured Parties may delegate to any other
Person the exercise of their rights or the performance of their duties
hereunder and may provide such mandataries or agents with any information that
the Secured Parties may possess with respect to the Grantor or the Hypothecated
Property.

 

(c)                                  The property or sums of money received or held
by the Secured Parties by reason of these presents may be invested by the
Secured Parties in such manner as they shall deem appropriate without regard to
rules governing the administration of the property of others.

 

(d)                                 Should the Secured Parties at any time consider
that the location or the use of the Hypothecated Property requires the
registration of this security, or the creation of similar security, under the
laws of another jurisdiction, the Grantor shall forthwith at the request of the
Agents execute the documents and accomplish the formalities necessary for such
purpose.

 

(e)                                  The exercise by the Secured Parties of any of their
rights shall not preclude them from exercising any other right under this
Hypothec or the law; the rights and remedies of the Secured Parties shall be
cumulative and are in addition to and not in substitution for any other rights
or remedies. The non-exercise by the Secured Parties of any of their rights
shall not constitute a waiver of any subsequent exercise of such right.

 

Section 9.6                                      Notices

 

Notices or other communications under or in connection with this
Hypothec shall be given in accordance with Section 9.01 of the Credit
Agreement, the provisions of which shall apply mutatis mutandis to this
Hypothec as if set out in full herein.

 

Section 9.7                                      Interpretation

 

(a)                                  Any provision in this Hypothec held by a court
of competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Hypothec and the affect thereof shall be
confined to the provision held to be invalid or illegal.

 

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

 

9

 

(c)                                  Unless there is something in the context
inconsistent therewith, words importing the singular shall include the plural
and vice versa, and words importing the neuter gender shall include the
masculine and feminine genders and viceversa.

 

Section 9.8                                      Acceptance by Canadian Lenders and Lenders 

 

This Hypothec need not be signed for acceptance by the Canadian Lenders
or the Lenders in order to be binding on the Grantor. Such acceptance by the
Canadian Agent on behalf of the Canadian Lenders and by the Administrative
Agent on behalf of the Lenders shall be sufficient and shall not be disputed by
the Grantor.

 

Section 9.9                                      Language

 

The parties confirm their express wish that this Hypothec and all
documents related thereto be drawn up in English. Les parties confirment leur volonté
expresse de voir la présente hypothèque et tous les documents s’y rattachant
être rédigés en anglais.

 

Section 9.10                                Governing law

 

This Hypothec shall be governed and construed in accordance with the
laws of the Province of Québec and the federal laws of Canada applicable
therein.  The Grantor irrevocably
submits to the jurisdiction of the courts of the Province of Québec.  This submission to jurisdiction is for the
benefit of the Secured Parties only.  As
a result, the Secured Parties shall not be prevented from taking proceedings in
any other courts with jurisdiction.

 

10

 

IN WITNESS WHEREOF the undersigned has caused this Hypothec to be executed by its duly
authorized representatives as of the date first above mentioned.

 

 

	
   

  	
  WATER PIK TECHNOLOGIES CANADA, INC.

  
	
   

  	
  as
  Grantor

  
	
   

  	
   

  
	
   

  	
  by:

  	
   /s/
  VICTOR C. STREUFERT

  
	
   

  	
  Name:

  	
   Victor
  C. Streufert

  
	
   

  	
  Title:

  	
   Vice
  President - Finance

  

 

11

 

IN WITNESS WHEREOF the undersigned has caused this Hypothec to be executed by its duly
authorized representatives as of the date first above mentioned.

 

 

	
   

  	
  JPMORGAN CHASE BANK, TORONTO BRANCH 

  
	
   

  	
  as
  Canadian Agent

  
	
   

  	
   

  
	
   

  	
  by:

  	
   /s/
  CHRISTINE CHAN

  
	
   

  	
  Name:

  	
   Christine
  Chan

  
	
   

  	
  Title:

  	
   Vice
  President

  

 

12

 

IN WITNESS WHEREOF the undersigned has caused this Hypothec to be executed by its duly
authorized representatives as of the date first above mentioned.

 

 

	
   

  	
  JPMORGAN CHASE BANK

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  by:

  	
   /s/ DONNA DIFORIO

  
	
   

  	
  Name:

  	
   Donna DiForio

  
	
   

  	
  Title:

  	
   Vice President

  

 

13Exhibit 10.1 for Skyway

                  SkyWay Communications Holdings Corp Announces
               In-Flight Services Contract with Southeast Airlines

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

CLEARWATER, Fla.--(BUSINESS WIRE)-September 2, 2003-SkyWay Communications
Holding Corp. (OTCBB: SWYC - News), its wholly own subsidiary, Sky Way Aircraft
Inc., and Southeast Airlines, Inc. announced today the companies have signed a
SkyWay in-flight system contract for a wide variety of in-flight services. Under
the contract, Southeast Airlines shall receive, on a reoccurring basis, a
percentage of the revenue generated by advertising and in-flight service usage
of the system.

Terms of the contract call for the installation of the Upgraded SkyWay in-flight
system on the fleet of Southeast Airlines eight (8) MD-80 and DC-9 aircraft. It
also includes all newly purchased aircraft, as approved by Southeast Airlines
management. The SkyWay Upgraded System includes an air to ground connection of
up to 15Mbps, wireless high-speed Internet, telephone services, advanced
in-flight entertainment (IFE) with on-demand video / audio, video monitored
security services, Flight Management Avionics Data Links (FMADL) for maintenance
support, archiving of aircraft monitored systems data including video for ten
(10) years, air filtration system monitoring and upon approval, cellular
micro-cell to facilitate passengers personal cell telephone use.

According to Brent Kovar, President of SkyWay Communications Holding Corp.
"Southeast Airlines will offer their passengers, what we believe to be, the most
advanced in-flight entertainment system in the world today, giving access to
high-speed Internet, telephone services, on-demand video/audio and at the same
time surrounding them in the safest most secure flying environment available
today. This airborne security system uses passenger monitoring tools such as
security cameras and facial recognition software to attempt to decrease the
likelihood of future September 11th events from happening again."

According to Tom Kolfenbach, President of Southeast Airlines Inc. "We have
consistently provided our customers, value, service and convenience. With
SkyWay's in-flight system, we can now also provide the best entertainment and
best security. SkyWay also provides Southeast the opportunity to secure an
entirely new source of revenues, which is a particularly attractive component of
our agreement".

Southeast Airlines will début SkyWay's in-flight system with shared
monthly reoccurring revenue from advertising and service usage. Under the
revenue sharing provisions of the contract, advertising charges are based on the
number of passengers multiplied by industry standard captive audience ratios for
internet banners, fixed monitor commercials and audio commercials. Telephone
usage is billed per minute, on-demand video/audio (played on passengers laptop)
charges range from $1.95 to $9.95. Because of advertising revenue, Internet use
will be free of charge to every passenger with their own Wi-Fi 802.11B or G
equipped laptop. Passengers with their own laptop can expect T1 speeds, as well
as have over 400 On-demand video selections ranging from Hollywood's newest
releases to continued education instructional videos, audio selections range
from books to current music artists, to choose from. It is planned that the
security cameras, both overt and covert, will be monitored in real time from
SkyWay's monitoring center located in Clearwater Florida. We believe that
Southeast Airlines, with the complete system installed, will lead the industry
in aircraft and passenger security and entertainment.

About Sky Way Aircraft, Inc.

Sky Way Aircraft, Inc. is a Clearwater, Florida based company that is developing
a unique ground to air in-flight aircraft communication network that it
anticipates will facilitate homeland security and in-flight entertainment. Sky
Way Aircraft is focused on bringing to the market a network supporting
aircraft-related service including anti-terrorism support, real time in-flight
surveillance and monitoring, WIFI access to the Internet, telephone service and
enhanced entertainment service for commercial and private aircraft throughout
the United States. Based on the final upgrading of a previous airborne telephone
and communications network, Sky Way Aircraft intends to provide broadband
connectivity between the ground and in-flight aircraft throughout the U.S. using
technology that provides a broadband high-speed data transmission. Sky Way
Aircraft intends to be the communications solution for commercial and private
aircraft owners wanting real time access to on-board security systems, aircraft
health and welfare monitoring, avionics operations and for passengers wanting
real time high-speed access to the Internet. The network will enable
applications that can personalize the in-flight entertainment experience,
provide real time access to flight management avionics with long-term data
storage and also support for ground monitoring of in-flight surveillance systems
that are being designed with the goal of enhancing current airline security
standards.

About Southeast Airlines, Inc.

Southeast Airlines is headquartered in Largo, Florida. The airline was
founded in 1993 and over the past 10 years has safely transported millions of
passengers. Southeast Airlines has a fleet of eight (8) modern passenger jet
aircraft manufactured by McDonnell Douglas (acquired by Boeing in 1999)
traveling to and from St. Petersburg/Clearwater, Ft. Lauderdale, Orlando/
Sanford, Fl, Newark, NJ, Newburgh, NY, Allentown, PA Columbus, OH, Gulfport, MS
and Las Vegas, NV. The fleet utilizes two of the most popular models operated by
airlines worldwide: DC-9-30 and MD-80 twin jet aircraft. All of Southeast's jet
aircraft meet current FAA standards and the engines are all Stage III noise
compliant. Our pilots, crew and mechanics are among the most experienced
personnel in the industry. Southeast Airlines is more demanding and exacting in
our maintenance of the fleet, exceeding industry standards and always in
compliance with FAA regulations. As a result our reliability and on-time
performance is well above the airline industry as a whole.

Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties, including without limitation, continued acceptance of the
Company's products, increased levels of competition for the Company, new
products and technological changes, the Company's dependence on third-party
suppliers, and other risks detailed from time to time in the Company's periodic
reports filed with the Securities and Exchange Commission.

For more information regarding SkyWay Communications Holding Corp. please
contact:

Brent Kovar, President (727) 535 8211     OR     www.skywayaircraftsecurity.com
                                                 ------------------------------

For more information regarding Southeast Airlines, please contact:

Scott Bacon, VP Planning,  (727) 532 1632    OR     www.flyseal.com

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