Document:

gia_ex101.htm

     

    EXHIBIT
10.1

     

    UNIT
PURCHASE AGREEMENT 

    

    This Unit Purchase Agreement ("Agreement"), is made and
entered into as of the 29th day
of January 2010 (the “Effective
Date”) by and between GULFSTREAM INTERNATIONAL GROUP,
INC., a Delaware corporation (the “Company”) having an executive
office located at 3201 Griffin Road, 4th
Floor, Fort Lauderdale, Florida 33312; and the Persons who have executed this
Agreement on the Purchaser Signature Page (individually, the “Purchaser” and collectively,
the “Purchasers”). The Company
and each Purchaser is hereinafter sometimes referred to individually as a “Party” and the Company and all
Purchasers are hereinafter sometimes referred to collectively as the “Parties.”

     

    RECITALS:

    

    A.           The
Company desires to sell units of its equity securities hereinafter described
(the “Units”) to the
Purchasers to provide the Company with additional working capital.

    

    B.           The
Purchasers are willing to purchase the Units in the maximum amount of
$1,500,000, all upon the terms and subject to the conditions hereinafter set
forth.

    

    C.           As
a material inducement to cause the Purchasers to enter into this Agreement and
purchase the Units, the Company has agreed to enter into this
Agreement.

    

    NOW, THEREFORE, in
consideration of the mutual covenants, agreements, repre­sentations and
warranties contained in this Agreement, the Parties hereto agree as
follows:

     

    DEFINITIONS

    

    As used
in this Agreement, the following terms shall have the meanings set forth
below:

    
 

    “Applicable Law” means any
domestic or foreign law, statute, regulation, rule, policy, guideline or
ordinance applicable to the Company and its Subsidiaries.

    

     “Affiliate” means any one or
more Person controlling, controlled by or under common control with any other
Person or their affiliate.

    

    “Business Day” shall mean any
day, excluding Saturday, Sunday and any other day on which national banks
located in New York, New York shall be closed for business.

    

     “Certificate of Incorporation”
shall mean the certificate of incorporation of the Company, as amended to
date.

     

    “Closing Date” shall, with
respect to each Purchaser, be that date on or before the date of expiration of
the Offering Period on which such Purchaser shall subscribe to the Units and
such subscription shall be accepted by the Company’s execution and delivery of
this Agreement.

    

        “Common Stock” shall mean the
shares of common stock of the Company, $.01 par value per share, that are
authorized for issuance pursuant to the Certificate of
Incorporation.

    

    “Dollar” and “$” means lawful money of the
United States of America.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

    

    “Financial Statements” shall
have the meaning as is defined in Section 3.4 of this
Agreement.

    

    “GAAP” means generally accepted
accounting principles in the United States of America as promulgated by the
American Institute of Certified Public Accountants and the Financial Accounting
Standards Board or any successor Institutes concerning the treatment of any
accounting matter.

    

    “Knowledge” means the knowledge
after reasonable inquiry.

    

    “Material Adverse Effect” with
respect to any entity or group of entities means any event, change or effect
that has or would have a materially adverse effect on the financial condition,
business or results of operations of the Company and its Subsidiaries, when
taken as a consolidated whole.

    

    “National Securities Exchange”
means the collective reference to the New York Stock Exchange, the NYSE Amex
Exchange, the Nasdaq Stock Exchange, the FINRA OTC Bulletin Board or any other
recognized national securities exchange in the United States.

    

    “Offeree Questionnaire” means
the questionnaire to be executed by each Purchaser in the form of Exhibit
A annexed hereto and made a part hereof.

    

    “Offering” means the offering
of the Units pursuant to this Agreement.

    

    “Offering Memorandum” shall
mean the confidential private placement memorandum of the Company dated as of
November 23, 2009, in the form of Exhibit
C annexed hereto and made a part hereof.

    

    “Offering Period” shall mean
the period that commenced as of the Effective Date and shall expire on February
28, 2010, unless such Offering Period shall be extended by the Company as
provided in Section 1.6 below.

     

    “Person” means any individual,
corporation, partnership, trust or unincorporated organization or a government
or any agency or political subdivision thereof.

     

    “Purchase Price” shall mean the
total purchase price paid by each Purchaser to the Company for all Units sold to
such Purchaser; which Purchase Price shall be the product of multiplying (a) the
number of Units sold in this Offering, by (b) the Unit Purchase
Price.

     

            “Placement Agent” means
____________________.

     

           
“Registration Rights
Agreement” means the registration rights agreement between the Company
and each Purchaser in substantially the form of Exhibit
D annexed hereto and made a part hereof.

     

           
“Shares” means the
collective reference to (a) the Common Stock included in the Units, and (b) the
Warrant Shares.

     

    
      
        
        

      

      
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         “Subsidiary” of any Person
means another Person, an amount of the voting securities, other voting ownership
or voting partnership interests of which is sufficient to elect at least a
majority of its Board of Directors or other governing body (or, if there are no
such voting interests, 50% or more of the equity interests of which) is owned
directly or indirectly by such first Person.

     

        “Tax” (and, with correlative
meaning, “Taxes” and
“Taxable”) means the
collective reference to: (i) any income, alternative or add-on minimum tax,
gross receipts tax, sales tax, use tax, ad valorem tax, transfer tax, franchise
tax, profits tax, license tax, withholding tax, payroll tax, employment tax,
excise tax, severance tax, stamp tax, occupation tax, property tax,
environmental or windfall profit tax, custom, duty or other tax, impost, levy,
governmental fee or other like assessment or charge of any kind whatsoever
together with any interest or any penalty, addition to tax or additional amount
imposed with respect thereto by any governmental or Tax authority responsible
for the imposition of any such tax (domestic or foreign); (ii) any liability for
the payment of any amounts of the type described in clause (i) above as a result
of being a member of an affiliated, consolidated, combined or unitary group for
any Taxable period, and (iii) any liability for the payment of any amounts of
the type described in clauses (i) or (ii) above as a result of any express or
implied obligation to indemnify any other person.

     

         “Tax Return” means any return,
declaration, form, claim for refund or information return or statement relating
to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

    

     “Transaction Documents” means
the collective reference to this Agreement, the Offeree Questionnaire, the
Warrant, the Registration Rights Agreement and the Offering
Memorandum.

    

     “Units” means a minimum of
$1,000,000 and a maximum of $1,500,000 of Common Stock and Warrants of the
Company offered pursuant to this Agreement; each Unit to consist of (a) one
share of Common Stock, and (b) a Warrant to purchase three-quarters (0.75) of a
share of Common Stock.

     

             “Unit Purchase Price” shall
mean the purchase price for each Unit offered hereby which shall be calculated
in accordance with Section 1.1(c) of
this Agreement.

    

     “Warrant” or “Warrants” means the individual
or collective reference to the warrant to purchase shares of Common Stock of the
Company that are included in each of the Units, and in the form of Exhibit
B annexed hereto and made a part hereof.

    

     “Warrant Shares” means the
shares of Common Stock that are issuable upon exercise of the
Warrants

    

    
      
        
        

      

      
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    ARTICLE
I

    PURCHASE AND SALE OF THE
UNITS

    

    Section 1.1  Purchase
and Sale of Units.

    

    (a)  Terms of the
Unit.  Upon the terms and conditions set forth in this
Agreement, the Company is Offering Units to each Purchaser consisting of (i) one
(1) share of the Common Stock of the Company, and (ii) a Warrant to purchase
three-quarters (0.75) of a share of Common Stock of the Company.

    

    (b)  Maximum Dollar Amount of
Units. A maximum amount of $1,500,000 of Units will be sold in the
Offering during the Offering Period, subject to increase as provided in Section 1.6(a)
below.

    

    (c)  Unit Purchase Price.
Each Unit shall be priced on the Closing Date applicable to each
Purchaser, and such price (the “Unit Purchase Price”) shall be
equal to $1.40.  Accordingly, the Company shall issue to each
Purchaser on the Closing Date applicable to such Purchaser, that number of
shares of Common Stock as shall determined by dividing (i) 100% of the proceeds
received from such Investor, by (ii) the Unit Purchase Price.

    

    Section
1.2   Minimum Purchase.
Each Purchaser shall purchase and pay for not less than 10,000 Units, consisting
of 10,000 shares of Common Stock and Warrants entitling the holder to purchase
an additional 7,500 shares of Common Stock (the “Minimum Units”); provided,
however, that the Company and the Placement Agent may agree to permit a
Purchaser to purchase and receive less than the Minimum Units.

    

    Section
1.3  The
Warrants. As part of the Units, each Purchaser shall be issued a Warrant
which shall:

    

    (a) entitle the Purchaser or any
subsequent holder of such Warrant, to purchase that number of shares of Common
Stock as shall be equal to seventy-five percent (75%) of the number of shares of
Common Stock included in all Units purchased by the Purchaser;

    

    (b) expire July 29,
2013;

    

    (c) have an initial exercise price
of $3.00 per share of Common Stock, subject to certain adjustments, as provided
therein;

    

    (d) be exercisable beginning six
(6) months after the date of issuance; and

    

    (e) be substantially in the form
of the Warrant attached hereto as Exhibit
B and made a part hereof.

    

     Section
1.4  Warrant
Shares. The Company has authorized and has reserved and covenants to
continue to reserve, free of preemptive rights and other similar contractual
rights of stockholders, a number of shares of Common Stock equal to one hundred
ten percent (110%) of the number of Warrant Shares.

    

    
      
        
        

      

      
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Section 1.5  Method of Subscription and
Payment of Purchase Price.

    

    (a)  Subject to the terms and
conditions hereof, on each Closing Date the Company agrees to issue and sell to
the applicable Purchaser and, in consideration of and in express reliance upon
the representations, warranties, covenants, terms and conditions of this
Agreement, such Purchaser agrees to purchase, for the Unit Purchase Price, that
number of Units as are set forth on the signature page of this Agreement next to
the name of such Purchaser, and pay to the Company the total Purchase Price for
such Units.

    

    (b) Payment of the Purchase Price
shall be made either:

     

    (i)          by
check payable to the order of “Anslow & Jaclin, LLP-Attorney
Trust Account” and referencing “Gulfstream International Group,
Inc.;” or

    

    (ii)         by wire
transfer of immediately available funds to the following account maintained by
the Placement Agent:

     

    
      	 	Receiving
      Bank Name:   	Wachovia
    Bank
	 	Receiving Bank
      ABA#:  	031201467
	 	Receiving Bank
      Address: 	Freehold, New
      Jersey
	 	Beneficiary’s
      Name: 	Anslow & Jaclin,
      LLP—Attorney Trust Account
	 	Reference:	Gulfstream
      International Group, Inc.
	 	Beneficiary’s
      Account #: 	2000013292968

    

     

    (c) Each Purchaser shall,
simultaneous with his, her or its payment of the Purchase Price for the Units
purchased, execute and deliver to the Placement Agent:

    

    (i)           The
Purchaser Signature Page to this Agreement;

    (ii)          The
Offeree Questionnaire (Exhibit
A) completed by the Purchaser; and

    (iii)         The
signature page to the Registration Rights Agreement (Exhibit
D).

    

    (d) On or promptly following such
Closing Date, the Company shall execute and deliver to such Purchaser the
applicable Warrant included in the Units purchased.

    

    Section
1.6  Closing; Multiple
Closings.

    

    (a) The Units shall be sold to
each Purchaser at a Closing held on the Closing Date applicable to such
Purchaser, and the Company and the Placement Agent shall conduct multiple
Closings of sales of Units through and including the date of expiration of the
Offering Period.  There shall be no minimum number or dollar amount of
Units that must be sold to complete this Offering and all proceeds received from
sales of Units during the Offering Period, less applicable compensation payable
to the Placement Agent, shall be remitted directly to the Company.

    

    (b) Provided that the Units shall
have been properly subscribed for by the applicable Purchaser, funds
representing the sale thereof shall have cleared, and all conditions to Closing
have been satisfied or waived, the Closing of the purchase and sale of Units by
each Purchaser shall take place at the offices of the Placement Agent, 650 Fifth
Avenue, New York, New York 10019, (the “Closing”) on any Closing Date
which shall be not later than the expiration date of the Offering Period;
provided, that the expiration date of the Offering Period may be extended for up
to an additional 45 days at the sole discretion of the Company.

    

    
      
        
        

      

      
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Section
1.7  Exemption
from Registration.  The Parties intend that the Units to be
issued by the Company to the Purchasers shall be exempt from the registration
requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to
Section 4(2) of the Securities Act and the rules and regulations promulgated
thereunder.

    

    ARTICLE
II

    REPRESENTATIONS AND
WARRANTIES OF THE PURCHASERS.

    

    Each of
the Purchasers individually (and not jointly) hereby represents and warrants to
the Company as follows:

    

      Section 2.1  Authorization and
Power. Such Purchaser has the requisite power and authority to enter into
and perform this Agreement and each of the other Transaction Documents to which
such Purchaser is a party and to purchase the Units being sold to him, her or it
hereunder. The execution, delivery and performance of this Agreement and each of
the other Transaction Documents to which such Purchaser is a party by such
Purchaser and the consummation by him, her or it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
individual, corporate, partnership or limited liability company action (as
applicable), and no further consent or authorization of such Purchaser or other
Person, is required. This Agreement and each of the other Transaction Documents
to which such Purchaser is a party has been duly authorized, executed and
delivered by such Purchaser and constitutes, or shall constitute when executed
and delivered, a valid and binding obligation of such Purchaser enforceable
against such Purchaser in accordance with the terms hereof.

    

    Section
2.2  No
Conflicts.The execution, delivery and performance of this Agreement and
each of the other Transaction Documents to which such Purchaser is a party and
the consummation by such Purchaser of the transactions contemplated hereby and
thereby or relating hereto do not and will not (i) if applicable, result in a
violation of such Purchaser’s charter documents, bylaws, operating agreement,
partnership agreement or other organizational documents or (ii) conflict with,
or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of any agreement, indenture or
instrument or obligation to which such Purchaser is a party or by which his, her
or its properties or assets are bound, or result in a violation of any law,
rule, or regulation, or any order, judgment or decree of any court or
governmental agency applicable to such Purchaser. Such Purchaser is not required
to obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under this Agreement or any other
Transaction Document to which such Purchaser is a party or to purchase the Units
in accordance with the terms hereof, provided, that for purposes of the
representation made in this sentence, such Purchaser is assuming and relying
upon the accuracy of the relevant representations and agreements of the Company
herein.

    

     Section
2.3  Status
of Purchaser. Each Purchaser is an “accredited investor” as defined in
Regulation D, a “qualified institutional buyer” as defined in Rule 144A, or a
“non-US person” as defined in Regulation S. Such Purchaser is not required to be
registered as a broker-dealer under Section 15 of the Exchange Act and such
Purchaser is not a broker-dealer, nor an affiliate of a
broker-dealer.

    

    
      
        
        

      

      
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Section 2.4  Acquisition for
Investment. Each Purchaser is acquiring the Units, the Common Stock, the
Warrants and the Warrant Shares (collectively, the “Securities”) solely for his,
her or its own account for the purpose of investment and not with a view to or
for sale in connection with a distribution. The Purchaser does not have a
present intention to sell the Securities, nor a present arrangement (whether or
not legally binding) or intention to effect any distribution of the Securities
to or through any person or entity; provided, however, that by
making the representations herein (except as provided below), such Purchaser
does not agree to hold the Securities for any minimum or other specific term and
reserves the right to dispose of the Securities at any time in accordance with
Federal and state securities laws applicable to such disposition.

    

     Section
2.5  Risks of
Investment.  Each Purchaser acknowledges that such Purchaser
has read and understands the risk factors set forth in the Offering Memorandum,
is able to bear the financial risks associated with an investment in the
Securities, and has sufficient knowledge and experience in investing in
companies similar to the Company in terms of the Company’s stage of development
so as to be able to evaluate the risks and merits of its investment in the
Company. Each Purchaser further acknowledges that that the purchase of the
Securities involves a significant degree of risk.

    

     Section
2.6  Reliance on
Exemptions.  The Purchaser understands that the Securities are
being offered and sold to it in reliance upon specific exemptions from the
registration requirements of United States federal and state securities laws and
that the Company is relying upon the truth and accuracy of, and the Purchaser’s
compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Purchaser set forth herein in order to determine the
availability of such exemptions and the eligibility of the Purchaser to acquire
the Securities.

     

    Section
2.7  Information.  The
Purchaser and his, her or its advisors, if any, have (a) received and carefully
reviewed a copy of the Offering Memorandum, and (b) had the opportunity to ask
questions of management of the Company and its Subsidiaries and have been
furnished with all information relating to the business, finances and operations
of the Company and information relating to the offer and sale of the Units which
have been requested by the Purchaser or its advisors.  Neither such
inquiries nor any other due diligence investigation conducted by the Purchaser
or any of its advisors or representatives shall modify, amend or affect the
Purchaser’s right to rely on the representations and warranties of the Company
contained herein.  The Purchaser further represents to the Company
that the Purchaser’s decision to enter into this Agreement has been based solely
on the independent evaluation of the Purchaser and its
representatives.

     

    Section
2.8  Governmental
Review.  The Purchaser understands that no United States
federal or state agency or any other government or governmental agency has
passed upon or made any recommendation or endorsement of the
Securities.

     

    Section
2.9  Transfer or
Re-sale.  The Purchaser understands that except as
provided in the Registration Rights Agreement, the sale or re-sale of the
Securities has not been and is not being registered under the Securities Act or
any applicable state securities laws, and the Securities may not be transferred
unless (i) the Securities are sold pursuant to an effective registration
statement under the Securities Act, (ii) the Purchaser shall have delivered
to the Company an opinion of counsel that shall be in form, substance and scope
customary for opinions of counsel in comparable transactions to the effect that
the Securities to be sold or transferred may be sold or transferred pursuant to
an exemption from such registration, which opinion shall be reasonably
acceptable to the Company, (iii) the Securities are sold or transferred to
an “affiliate” (as defined in Rule 144 promulgated under the Securities Act (or
a successor rule) (“Rule
144”)) of the Purchaser who agrees to sell or otherwise transfer the
Securities only in accordance with this Section 2.9 and who is an Accredited
Purchaser, (iv) the Securities are sold pursuant to Rule 144, or
(v) the Securities are sold pursuant to Regulation S under the Securities
Act (or a successor rule) (“Regulation
S”).  Notwithstanding the foregoing or anything else contained
herein to the contrary, the Securities may be pledged as collateral in
connection with a bona
fide margin account or other lending arrangement.

     

    
      
        
        

      

      
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     Section
2.10  Legends.  The
Purchaser understands that the Common Stock, the Warrants and the Warrant Shares
shall bear a restrictive legend in the form as set forth below.  The
Purchaser understands that, until such time as the resale of the Common Stock or
the Warrant Shares have been registered under the Securities Act as contemplated
by the Registration Rights Agreement or otherwise may be sold pursuant to Rule
144 or Regulation S without any restriction as to the number of securities as of
a particular date that can then be immediately sold, the Shares may bear a
restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of the certificates evidencing such
Securities):

     

    “Neither
the offer nor sale of the securities represented by this certificate has been
registered under the Securities Act of 1933, as amended, (the “Act”).  The
securities may not be sold, transferred or assigned in the absence of an
effective registration statement for the securities under the Act, or an opinion
of counsel, in form, substance and scope customary for opinions of counsel in
comparable transactions, that registration is not required under the Act or
unless sold pursuant to Rule 144 or Regulation S under the Act.”

    

    Section
2.11  Residency.  The
Purchaser is a resident of the jurisdiction set forth immediately below such
Purchaser’s name on the signature pages hereto.

     

    Section
2.12  Non-Compliance with
Continued Listing Standards of NYSE Amex Exchange.
The Purchaser acknowledges that the Company is currently not in compliance with
certain continued listing standards of the NYSE Amex Exchange, including
compliance with specified minimum stockholders equity thresholds when an issuer
sustains net losses over a number of years.  The Company has not met
the threshold set forth in Section 1003(a) of the NYSE Amex Exchange’s Company
Guide because, for the 2008 fiscal year, the Company has stockholder’s equity of
less than $2 million and losses from continuing operations and/or net losses in
two out of its three most recent fiscal years.  As a result, the Company
has received a notice from the NYSE Amex Exchange that it has not met this
continued listing requirement.

    

    
      
        
        

      

      
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    ARTICLE
III.

    REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.

    

    The
Company hereby represents and warrants to the Purchasers, as
follows:

    

    Section 3.1  Organization and Good
Standing.  The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of
Delaware.  The Company has the corporate power to own its own property
and to carry on its business as now being conducted and is duly qualified to do
business in any jurisdiction where so required except where the failure to so
qualify would have no material negative impact.

    

    Section 3.2  Authority.  The
Company has the corporate power to enter into this Agreement and to perform its
obligations hereunder, including the issuance of the Units.  The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by the Board of
Directors of the Company as required by Delaware law.  The execution
and performance of this Agreement will not constitute a material breach of any
agreement, indenture, mortgage, license or other instrument or document to which
the Company is a party and will not violate any judgment, decree, order, writ,
rule, statute, or regulation applicable to the Company or its
properties.  The execution and performance of this Agreement will not
violate or conflict with any provision of the respective Certificate of
Incorporation or by-laws of the Company.

    

    Section 3.3  Exchange Act Filings;
Exchange Listing.

    

    (a)           The
Company has timely filed and will continue to file (in each case, subject to
12b-25 extensions) all Form 10-KSB, Form 8-K, Form 10-Q, Form 14-A Proxy
Statements and other forms and periodic reports (collectively, SEC Reports”) required to be
filed under the Exchange Act, and is a full reporting company under Section 13
or 15(d) of the Exchange Act..

    

    (b)           The
disclosures set forth and to be set forth in the SEC Reports are and will be
true and correct in all material respects, do not and will not contain any
untrue statement of a material fact or omit or will omit to state any fact
necessary to make any statement therein not materially misleading.

    

    (c)           The
Common Stock is listed for trading on the NYSE:Amex Exchange (the “AMEX”) and, except as
otherwise disclosed in the SEC Reports, the Company has (i) complied in all
material respects with the rules and regulations of the AMEX, and (ii) no reason
to believe that its Common Stock will be delisting from trading on such
securities exchange.

    

    Section 3.4  Company Financial
Statements.

    

    The
Company has furnished to the Purchasers the unaudited consolidated balance sheet
as at December 31, 2008 and consolidated statement of operations and statement
of cash flows of the Company and its Subsidiaries for the fiscal year then
ended, and the unaudited consolidated balance sheet as at September 30, 2009 and
the unaudited consolidated statement of operations of the Company and its
Subsidiaries for the nine (9) months then ended (collectively, the “Company Financial
Statements”).  Except as set forth on the balance sheet dated
September 30, 2009, as at such date, the Company and its Subsidiaries has no
other material assets and has incurred no other material liabilities, debts or
obligations, whether fixed, contingent or otherwise required to be set forth on
a balance sheet prepared in accordance with GAAP.  The books of
account and other financial records of the Company are in all respects complete
and correct in all material respects and are maintained in accordance with good
business and accounting practices.

    

    
      
        
        

      

      
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         Section 3.5  No Material Adverse
Effects.  Except as set forth in the SEC Reports or disclosed
in the Offering Memorandum, since September 30, 2009:

    

    (a)           there
has not been any material adverse change in the financial position of the
Company and its Subsidiaries (collectively, the “Company Group”) except changes
arising in the ordinary course of business, which changes will in no event have
a Material Adverse Effect on the financial position of the Company Group, and
will be consistent with the representations made by the Company
hereunder.

    

    (b)           there
has not been any damage, destruction or loss that would have a Material Adverse
Effect on the assets, prospective business, operations or condition (financial
or otherwise) of the  Company Group whether or not covered by
insurance;

    

    (c)           there
has not been any declaration setting aside or payment of any dividend or
distribution with respect to any redemption or repurchase of  the
Common Stock;

    

    (d)           there
has not been any sale of an asset (other than in the ordinary course of
business) or any mortgage pledge by the Company Group of any properties or
assets; or

    

    (e)           there
has not been adoption or modification of any pension, profit sharing,
retirement, stock bonus, stock option or similar plan or
arrangement.

    

    (f)           there
has not been any loans or advance to any shareholder, officer, director,
employee, consultant, agent or other representative or made any other loans or
advance otherwise than in the ordinary course of business;

    

    (g)           except
in the ordinary course of business, there has not been any increase in the
annual level of compensation of any executive employee of the Company Group;
and

    

    (h)           the
Company Group has not issued any equity securities or rights to acquire equity
securities.

    

    Section 3.6  Taxes.  The
Company Group has timely filed all material tax, governmental and/or related
forms and reports (or extensions thereof) due or required to be filed and has
paid or made adequate provisions for all taxes or assessments which have become
due as of the Closing Date, and there are no deficiencies
outstanding.

    

    Section 3.7  Compliance with
Laws.   The Company Group has complied with all federal,
state, county and local laws, ordinances, regulations, inspections, orders,
judgments, injunctions, awards or decrees applicable to it or its business,
which, if not complied with, would have a Material Adverse Effect.

    

    Section 3.8  Actions and
Proceedings.  The Company Group is not a Party to any pending
litigation or, to its knowledge, any governmental proceedings are threatened
against the Company Group, that could reasonably be expected to have a Material
Adverse Effect.

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

             Section
3.9  Access
to Records.  The corporate financial records, minute books, and
other documents and records of the Company have been made available to the
Purchasers prior to the Closing hereof.

    

    Section 3.11  Brokers or
Finders.  Except for the payment to the Placement Agent of (a)
commissions in the amount of 9% of the total Purchase Price received by the
Company from the Offering from the sale of all Units, (b) a non-accountable
expense allowance equal to 2% of the total Purchase Price received by the
Company from the Offering from the sale of all Units, and (c) warrants (the
“Placement Agent
Warrants”) entitling the holder to receive Common Stock and warrants
equal to 8% of the aggregate number of Units sold in the Offering (collectively,
the “Placement Agent
Compensation”), no commissions, brokers' fees or finder's fee will be
payable by the Company in connection with the transactions contemplated by this
Agreement, nor will any such fee be incurred as a result of any actions of the
Company.

    

    Section 3.12   Expenses.   It
is understood and agreed that following the execution of this Agreement, any and
all legal or other fees and expenses with respect to any filings, documentation
and related matters with respect to the consummation of the transactions
contemplated hereby shall be the sole responsibility of the Company, and that
the Purchasers shall not be responsible for any such expenses or legal or other
fees.

    

    ARTICLE
IV

    CONDITIONS

    

    Section
4.1  Conditions Precedent to the
Obligation of the Company to Sell the Units. The obligation hereunder of
the Company to issue and sell the Units, the Common Stock and the Warrants to
each Purchaser is subject to the satisfaction or waiver, on or before the
applicable Closing Date, of each of the conditions set forth below. These
conditions are for the Company’s sole benefit and may be waived by the Company
at any time in its sole discretion.

    

    (a)    Accuracy of Each Purchaser’s
Representations and Warranties. The representations and warranties of
each Purchaser in this Agreement and each of the other Transaction Documents to
which such Purchaser is a party shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made at
that time, except for representations and warranties that are expressly made as
of a particular date, which shall be true and correct in all material respects
as of such date.

    

    (b)    Performance by the
Purchaser. Each Purchaser shall have performed, satisfied and complied in
all respects with all covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by such Purchaser at or
prior to the Closing.

    

    (c)     No Injunction. No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of
the transactions contemplated by this Agreement.

    

    (d)     Delivery of Purchase
Price. The Purchase Price for the Units delivered by the applicable
Purchaser to the Placement Agent and such funds shall have cleared.

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    (e)     Delivery of Transaction
Documents. The Transaction Documents to which the Purchaser is a party
shall have been duly executed and delivered by the applicable Purchaser to the
Placement Agent or the Company.

    

    Section
4.2  Conditions Precedent to the
Obligation of the Purchaser to Purchase the Units. The obligation
hereunder of each Purchaser to acquire and pay for the Units is subject to the
satisfaction or waiver, at or before the applicable Closing Date, of each of the
conditions set forth below. These conditions are for each Purchaser’s sole
benefit and may be waived by such Purchaser at any time in its sole
discretion.

    

    (a)           Accuracy of the Company’s
Representations and Warranties. Each of the representations and
warranties of the Company in this Agreement and the other Transaction Documents
shall be true and correct in all respects as of the date when made and as of the
Closing Date as though made at that time, except for representations and
warranties that are expressly made as of a particular date, which shall be true
and correct in all respects as of such date.

    

    (b)           Performance by the
Company. The Company shall have performed, satisfied and complied in all
respects with all covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by the Company at or prior
to the Closing Date.

    

    (c)           No Injunction. No
statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of any of
the transactions contemplated by this Agreement.

    

    (d)           No Proceedings or
Litigation. No action, suit or proceeding before any arbitrator or any
governmental authority shall have been commenced, and no investigation by any
governmental authority shall have been threatened, against the Company or any
Subsidiary, or any of the officers, directors or affiliates of the Company or
any Subsidiary seeking to restrain, prevent or change the transactions
contemplated by this Agreement, or seeking damages in connection with such
transactions.

    

    (e)           Registration Rights
Agreement. On the Closing Date, the Company shall have executed and
delivered the Registration Rights Agreement to the Placement Agent for the
benefit of the Purchaser.

    

    (f)    Stock Certificates and
Warrant. On or before the applicable Closing Date, the Company shall have
executed and delivered to the Placement Agent for the benefit of the Purchaser
the certificates (in such denominations as such Purchaser shall request) for the
Common Stock and the Warrant being acquired by such Purchaser at the applicable
Closing (in such denominations as such Purchaser shall request) to such address
set forth next to the name of the Purchaser on the Purchaser Signature Page to
this Agreement.

    

    (g)    Reservation of
Shares. As of the Closing Date, the Company shall have reserved out of
its authorized and unissued Common Stock, solely for the purpose of effecting
the exercise of the Warrants, a number of shares of Common Stock equal to one
hundred ten percent (110%) of the aggregate number of Warrant Shares issuable
upon exercise of the number of Warrants issued or to be issued pursuant to this
Agreement.

    

    (h)           Material Adverse
Effect. No Material Adverse Effect shall have occurred at or before the
Closing Date.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
V

    MISCELLANEOUS

    

    Section 5.1  Survival of
Representations. Notwithstanding any right of either Party to
investigate the affairs of the other Party, each Party has the right to rely
fully upon representations, warranties, covenants and agreements of the other
Party contained in this Agreement or in any document delivered to one by the
other or any of their representatives, in connection with the transactions
contemplated by this Agreement.  All such representations, warranties,
covenants and agreements shall survive the execution and delivery hereof and the
closing hereunder for twelve (12) months following the Closing.

    

    Section 5.2  Waivers.  The
waiver of a breach of this Agreement or the failure of any Party hereto to
exercise any right under this Agreement shall in no way constitute waiver as to
future breach whether similar or dissimilar in nature or as to the exercise of
any further right under this Agreement.

    

    Section 5.3  Amendment.  This
Agreement may be amended or modified only by an instrument of equal formality
signed by the Parties or the duly authorized representatives of the respective
Parties.

    

    Section 5.4   Assignment.  This
Agreement is not assignable except by operation of law.

    

    Section 5.5   Notice.  Any
notice or statement given under this Agreement shall be deemed to have been
given if sent by registered mail addressed to the other Party at the address
indicated above or at such other address which shall have been furnished in
writing to the addressor.

    

    Section 5.6  Governing
Law.  This Agreement shall be construed, and the legal
relations between the Parties determined, in accordance with the laws of the
State of New York, thereby precluding any choice of law rules which may direct
the application of the laws of any other jurisdiction.

    

    Section 5.7  Publicity.  No
publicity release or announcement concerning this Agreement or the transactions
contemplated hereby shall be issued by either Party hereto at any time from the
signing hereof without advance approval in writing of the form and substance by
the other Party.

    

    Section 5.8  Entire
Agreement.  This Agreement and the Units executed in connection
with the consummation of the transactions contemplated herein contain the entire
agreement among the Parties with respect to the transactions contemplated
hereby, and supersedes all prior agreements, written or oral, with respect
hereof.

    

    Section 5.9  Headings.  The
headings in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.

    

    Section 5.10  Severability of
Provisions.  The invalidity or unenforceability of any term,
phrase, clause, paragraph, restriction, covenant, agreement or provision of this
Agreement shall in no way affect the validity or enforcement of any other
provision or any part thereof.

    

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

          
Section 5.11  Counterparts.  This
Agreement may be executed in any number of counterparts, each of which when so
executed, shall constitute an original copy hereof, but all of which together
shall consider but one and the same document.

    

    Section 5.12  Binding
Effect.  This Agreement shall be binding upon the Parties
hereto and inure to the benefit of the Parties, their respective heirs,
administrators, executors,

    successors
and assigns.

    

    Section 5.13  Facsimile
Signatures.  This Agreement and the Transaction Documents may
be executed and delivered by facsimile or pdf electronic mail, and all
signatures shall, for purposes of this Agreement and such transaction documents,
be deemed to be originals and legally binding upon such signatory.

    

    [the
balance of this page intentionally left blank - signature pages
follow]

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Parties have executed this Agreement on the date first above
written.

     

     

    
      	 	GULFSTREAM INTERNATIONAL GROUP,
      INC.	 
	 	(a
      Delaware corporation)	 
	 	 	 
	
               

            	
              By:
      

            	/s/ 	 
	 	 	David
      Hackett, President	 
	 	 	 	 
	 	 	 	 

    

     

     

    

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    
      
        	 	Purchaser Signature
      Page  16 of 16	 
	 	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

    

    
      	 	 	
              [Name
      of Purchaser – individual]

               

               

            	 
	
            	 	 	 
	
               

            	
               

            	 	 
	 	 	Name 	 
	 	 	 	 
	 	 	 	 
	 	 	Address of
      Purchaser	 
	 	 	 	 
	 	 	 	 
	 	 	telephone:	 
	 	 	fax:	 
	 	 	email:	 
	 	 	
               

               

              Number of Units
      Purchased: _____________

            	 
	 	 	(Minimum
      10,000 Units)	 
	 	 	 	 
	 	 	Total Purchase
      Price:  $______________	 
	 	 	(No.
      of Units Purchased x the Unit Purchase Price)	 

       

    

     

    
      
         

      

      
        -16-gia_ex102.htm

    
      EXHIBIT
10.2

       

    

    Exhibit
B

    

    THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED
OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE
SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION OF SUCH SECURITIES
UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
LAWS IS NOT REQUIRED.

    

     

    WARRANT
TO PURCHASE

     

    SHARES
OF COMMON STOCK

     

    OF

     

    GULFSTREAM INTERNATIONAL
GROUP, INC.

     

    
      	 	Expires:
      July 29, 2013	 
	 	 	 
	No.:
    2010-___	 	Number of Shares:
      _______
	Original Issue Date:
      January 29, 2010	 	 

    

     

    FOR VALUE RECEIVED, the
undersigned, Gulfstream
International Group, Inc., a Delaware corporation (together with its
successors and assigns, the “Company”), hereby certifies that
__________________ (the
“Initial
Holder”) and/or his, her or its registered assigns (collectively, with
the Initial Holder, the “Holder”)
is entitled to subscribe for and purchase, during the Term (as hereinafter
defined), up to __________________ (_________) shares (subject to adjustment as
hereinafter provided) of the duly authorized, validly issued, fully paid and
non-assessable Common Stock of the Company, at an exercise price per share equal
to the Three Dollar ($3.00) per share Warrant Price, subject, however, to the
provisions and upon the terms and conditions hereinafter set forth. Capitalized
terms used in this Warrant and not otherwise defined herein shall have the
respective meanings specified in Section
7 hereof.

     

    
      	1.	Term. The term
      of this Warrant shall commence on the above January 29, 2010 Original
      Issue Date and shall expire at 5:00 p.m., Eastern Standard Time, on July
      29, 2013 (such period being the “Term”).

    

     

    
      
        
        

      

      
        1

        
        

        

      

      
        
        

      

    

     

    
      	2.	Method of Exercise;
      Payment; Issuance of New Warrant; Transfer and
  Exchange

    

       

      
        	    (a) 	Time of
      Exercise. The purchase rights represented by this Warrant may be
      exercised in whole or in part beginning on July 29, 2010 through the
      expiration of the Term.
	 	 
	    (b)	Method of
      Exercise. The Holder hereof may exercise this Warrant, in whole or
      in part, by the surrender of this Warrant (with the exercise form attached
      hereto duly executed) at the principal office of the Company, and by the
      payment to the Company of an amount of consideration therefor equal to the
      Warrant Price in effect on the date of such exercise multiplied by the
      number of shares of Warrant Shares with respect to which this Warrant is
      then being exercised, payable at such Holder's
  election:

      

    

     

    
      	          (i)	by certified or
      official bank check or by wire transfer to an account designated by the
      Company,
	 	 
	          (ii)	by “cashless
      exercise” in accordance with the provisions of subsection (c) of this
      Section
      2; provided,
      that such “cashless exercise” shall only be permitted if after July
      1, 2010, a registration statement under the Securities Act providing for
      the resale of this Warrant and the Warrant Shares underlying this Warrant
      included in the Units issued pursuant to the Purchase Agreement is not
      then in effect as required under the Registration Rights Agreement,
      or
	 	 
	          (iii)	by a combination of
      the foregoing methods of payment selected by the Holder of this
      Warrant.

    

     

    
      	    (c)	Cashless
      Exercise. Notwithstanding any provision herein to the contrary, if
      a registration statement under the Securities Act providing for the resale
      of this Warrant and the Warrant Shares underlying this Warrant is not
      then in effect as required under the Registration Rights Agreement,
      commencing at any time on or after July 1, 2010 if the Per Share Market
      Value of one share of Common Stock is greater than the Warrant Price (at
      the date of calculation as set forth below), in lieu of exercising this
      Warrant by payment of cash, the Holder may exercise this Warrant by a
      cashless exercise by surrender of this Warrant at the principal office of
      the Company together with the properly endorsed Notice of Exercise, in
      which event the Company shall issue to the Holder a number of shares of
      Common Stock computed using the following
formula:

    

     

    X = Y - (A)(Y)

                 B

    

    
      	
              Where

            	
              X
      =

            	
              the
      number of shares of Common Stock to be issued to the
    Holder.

            

    

    

    
      	
               
      

            	
              Y
      =

            	
              the
      number of shares of Common Stock purchasable upon exercise of all of the
      Warrant or, if only a portion of the Warrant is being exercised, the
      portion of the Warrant being
exercised.

            

    

     

    
      	
               
      

            	
              A
      =

            	
              the
      Warrant Price.

            

    

    

    B
=           the Per Share
Market Value of one share of Common Stock.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (d)           Issuance of Stock
Certificates. In the event of any exercise of this Warrant in accordance
with and subject to the terms and conditions hereof, certificates for the shares
of Warrant Shares so purchased shall be dated the date of such exercise and
delivered to the Holder’s Prime Broker as specified in the Holder’s exercise
form within a reasonable time, not exceeding five (5) Trading Days after such
exercise (the “Delivery
Date”) or, at the request of the Holder (provided that a registration
statement under the Securities Act providing for the resale of the Warrant
Shares is then in effect or that the shares of Warrant Shares are otherwise
exempt from registration), issued and delivered to the Depository Trust Company
(“DTC”)
account on the Holder’s behalf via the Deposit Withdrawal Agent Commission
System (“DWAC”)  when
available, within a reasonable time, not exceeding five (5) Trading Days after
such exercise, and the Holder hereof shall be deemed for all purposes to be the
holder of the shares of Warrant Shares so purchased as of the date of such
exercise. Notwithstanding the foregoing to the contrary, the Company or its
transfer agent shall only be obligated to issue and deliver the shares to the
DTC on a holder’s behalf via DWAC if such exercise is in connection with a sale
or other exemption from registration by which the shares may be issued without a
restrictive legend and the Company and its transfer agent are participating in
DTC through the DWAC system. The Holder shall deliver this original Warrant, or
an indemnification reasonably acceptable to the Company undertaking with respect
to such Warrant in the case of its loss, theft or destruction, at such time that
this Warrant is fully exercised. With respect to partial exercises of this
Warrant, the Company shall keep written records for the Holder of the number of
shares of Warrant Shares exercised as of each date of exercise.

    

    (e)           Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Exercise. In addition to any
other rights available to the Holder, if the Company fails to cause its transfer
agent to transmit to the Holder a certificate or certificates representing the
Warrant Shares pursuant to an exercise on or before the second business day
following the Delivery Date, and if after such date the Holder is required by
its broker to purchase (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant
Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (1) pay in cash to the Holder the amount by which (x) the
Holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of shares of Warrant Shares that the Company was
required to deliver to the Holder in connection with the exercise at issue times
(B) the price at which the sell order giving rise to such purchase obligation
was executed, and (2) at the option of the Holder, either reinstate the portion
of the Warrant and equivalent number of shares of Warrant Shares for which such
exercise was not honored or deliver to the Holder the number of shares of Common
Stock that would have been issued had the Company timely complied with its
exercise and delivery obligations hereunder. For example, if the Holder
purchases Common Stock having a total purchase price of $11,000 to cover a
Buy-In with respect to an attempted exercise of shares of Common Stock with an
aggregate sale price giving rise to such purchase obligation of $10,000, under
clause (1) of the immediately preceding sentence the Company shall be required
to pay the Holder $1,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In, together
with applicable confirmations and other evidence reasonably requested by the
Company. Nothing herein shall limit a Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver certificates representing
shares of Common Stock upon exercise of this Warrant as required pursuant to the
terms hereof.

     

    (f)           Transferability of
Warrant. Subject to Section
2(h) hereof, this Warrant may be transferred by a Holder, in whole or in
part, without the consent of the Company. If transferred pursuant to this
paragraph, this Warrant may be transferred on the books of the Company by the
Holder hereof in person or by duly authorized attorney, upon surrender of this
Warrant at the principal office of the Company, properly endorsed (by the Holder
executing an assignment in the form attached hereto) and upon payment of any
necessary transfer tax or other governmental charge imposed upon such transfer.
This Warrant is exchangeable at the principal office of the Company for Warrants
to purchase the same aggregate number of shares of Warrant Shares, each new
Warrant to represent the right to purchase such number of shares of Warrant
Shares as the Holder hereof shall designate at the time of such exchange. All
Warrants issued on transfers or exchanges shall be dated the Original Issue Date
and shall be identical with this Warrant except as to the number of shares of
Warrant Shares issuable pursuant thereto.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (g)           Continuing Rights of
Holder. The Company will, at the time of or at any time after each
exercise of this Warrant, upon the request of the Holder hereof, acknowledge in
writing the extent, if any, of its continuing obligation to afford to such
Holder all rights to which such Holder shall continue to be entitled after such
exercise in accordance with the terms of this Warrant, provided
that if any such Holder shall fail to make any such request, the failure shall
not affect the continuing obligation of the Company to afford such rights to
such Holder.

    

    (h)           Compliance with Securities
Laws.

     

    (i)           The
Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and
the shares of Warrant Shares to be issued upon exercise hereof are being
acquired solely for the Holder's own account and not as a nominee for any other
party, and for investment, and that the Holder will not offer, sell or otherwise
dispose of this Warrant or any shares of Warrant Shares to be issued upon
exercise hereof except pursuant to an effective registration statement, or an
exemption from registration, under the Securities Act and any applicable state
securities laws.

     

    (ii)           Except
as provided in paragraph (iii) below, this Warrant and all certificates
representing shares of Warrant Shares issued upon exercise hereof shall be
stamped or imprinted with a legend in substantially the following
form:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION OF SUCH
SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED.

     

    (iii)           The
Company agrees to reissue this Warrant or certificates representing any of the
Warrant Shares, without the legend set forth above, if at such time, prior to
making any transfer of any such securities, the Holder shall give written notice
to the Company describing the manner and terms of such transfer and
demonstrating that the following conditions are satisfied. Such proposed
transfer will not be effected until: (a) either (i) the Company has received an
opinion of counsel reasonably satisfactory to the Company, to the effect that
the registration of such securities under the Securities Act is not required in
connection with such proposed transfer, or (ii) a registration statement under
the Securities Act covering such proposed disposition has been filed by the
Company with the Securities and Exchange Commission and has become and remains
effective under the Securities Act, or (b) either (i) the Company has received
an opinion of counsel reasonably satisfactory to the Company, to the effect that
registration or qualification under the securities or “blue sky” laws of any
state is not required in connection with such proposed disposition, or (ii)
compliance with applicable state securities or “blue sky” laws has been effected
or a valid exemption exists with respect thereto. The Company will respond to
any such notice from a holder within three (3) Trading Days. In the case of any
proposed transfer under this Section
2(h), the Company will use reasonable efforts to comply with any such
applicable state securities or “blue sky” laws, but shall in no event be
required, (x) to qualify to do business in any state where it is not then
qualified, (y) to take any action that would subject it to tax or to the general
service of process in any state where it is not then subject, or (z) to comply
with state securities or “blue sky” laws of any state for which registration by
coordination is unavailable to the Company. The restrictions on transfer
contained in this Section
2(h) shall be in addition to, and not by way of limitation of, any other
restrictions on transfer contained in any other section of this Warrant.
Whenever a certificate representing the Warrant Shares is required to be issued
to the Holder without a legend, in lieu of delivering physical certificates
representing the Warrant Shares, the Company shall cause its transfer agent to
electronically transmit the Warrant Shares to the Holder by crediting the
account of the Holder or Holder's Prime Broker with DTC through its DWAC system
(to the extent not inconsistent with any provisions of this Warrant or the
Purchase Agreement).

    

    (i)           Accredited Investor
Status. At the time of the exercise of this Warrant, the Holder (1) shall
be an “accredited investor” as defined in Regulation D under the Securities Act,
or (2) shall exercise this Warrant by means of a cashless exercise as provided
for in Section 2(c).

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    3.           Adjustment of Warrant
Price. The number of shares of Common Stock for which this Warrant shall
be exercisable shall be subject to adjustment from time to time as set forth in
this Section
3. The Company shall give the Holder notice of any event described below
which requires an adjustment pursuant to this Section
3 in accordance with the notice provisions set forth in Section
13.

     

    (a)           Adjustments for Stock
Splits, Combinations, Certain Dividends and Distributions.  If
the Company shall, at any time or from time to time after the Original Issue
Date, effect a split of the outstanding Common Stock (or any other subdivision
of its shares of Common Stock into a larger number of shares of Common Stock),
combine the outstanding shares of Common Stock into a smaller number of shares
of Common Stock, or make or issue or set a record date for the determination of
holders of Common Stock entitled to receive a dividend or other distribution
payable in shares of Common Stock, then, in each event (i) the number of shares
of Common Stock for which this Warrant shall be exercisable immediately after
the occurrence of any such event shall be adjusted to equal the number of shares
of Common Stock that a record holder of the same number of shares of Common
Stock for which this Warrant is exercisable immediately prior to the occurrence
of such event would own or be entitled to receive after the happening of such
event, and (ii) the Warrant Price then in effect shall be adjusted to equal (A)
the Warrant Price then in effect multiplied by the number of shares of Common
Stock for which this Warrant is exercisable immediately prior to the adjustment
divided by (B) the number of shares of Common Stock for which this Warrant is
exercisable immediately after such adjustment.

     

    (b)           Adjustment for Other
Dividends and Distributions. If the Company shall, at any time or from
time to time after the Original Issue Date, make or issue or set a record date
for the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in (i) cash, (ii) any evidences of indebtedness,
or any other securities of the Company or any property of any nature whatsoever,
other than, in each case, shares of Common Stock; or (iii) any warrants or other
rights to subscribe for or purchase any evidences of indebtedness, or any other
securities of the Company or any property of any nature whatsoever, other than,
in each case, shares of Common Stock, then, and in each event, (A) the number of
shares of Common Stock for which this Warrant shall be exercisable shall be
adjusted to equal the product of the number of shares of Common Stock for which
this Warrant is exercisable immediately prior to such adjustment multiplied by a
fraction (1) the numerator of which shall be the Per Share Market Value of
Common Stock at the date of taking such record and (2) the denominator of which
shall be such Per Share Market Value minus the amount allocable to one share of
Common Stock of any such cash so distributable and of the fair value (as
determined in good faith by the Board and supported by an opinion from an
investment banking firm mutually agreed upon by the Company and the Holder) of
any and all such evidences of indebtedness, shares of stock, other securities or
property or warrants or other subscription or purchase rights so distributable,
and (B) the Warrant Price then in effect shall be adjusted to equal (1) the
Warrant Price then in effect multiplied by the number of shares of Common Stock
for which this Warrant is exercisable immediately prior to the adjustment
divided by (2) the number of shares of Common Stock for which this Warrant is
exercisable immediately after such adjustment. A reclassification of the Common
Stock (other than a change in par value, or from par value to no par value or
from no par value to par value) into shares of Common Stock and shares of any
other class of stock shall be deemed a distribution by the Company to the
holders of its Common Stock of such shares of such other class of stock within
the meaning of this Section
3(b) and, if the outstanding shares of Common Stock shall be changed into
a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, as
the case may be, of the outstanding shares of Common Stock within the meaning of
Section
3(a).

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (c)           Adjustments for
Reclassification, Exchange or Substitution. If the Common Stock for which
this Warrant is exercisable at any time or from time to time after the Original
Issue Date shall be changed to the same or different number of shares of any
class or classes of stock, whether by reclassification, exchange, substitution
or otherwise (other than by way of a stock split or combination of shares or
stock dividends provided for in Section
3(a), Section
3(b), or a reorganization, merger, consolidation, or sale of assets
provided for in Section
3(d)), then, and in each event, an appropriate revision to the Warrant
Price shall be made and provisions shall be made (by adjustments of the Warrant
Price or otherwise) so that, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, in lieu of Warrant Shares, the kind and
amount of shares of stock and other securities receivable upon reclassification,
exchange, substitution or other change, by holders of the number of shares of
Common Stock for which this Warrant was exercisable immediately prior to such
reclassification, exchange, substitution or other change.

     

    (d)           Adjustments for
Reorganization, Merger, Consolidation or Sales of Assets. If at any time
or from time to time after the Original Issue Date there shall be a capital
reorganization of the Company (other than by way of a stock split or combination
of shares or stock dividends or distributions provided for in Section
3(a), and Section
3(b), or a reclassification, exchange or substitution of shares provided
for in Section
3(c)), or a merger or consolidation of the Company with or into another
corporation where the holders of the Company’s outstanding voting securities
prior to such merger or consolidation do not own over 50% of the outstanding
voting securities of the merged or consolidated entity, immediately after such
merger or consolidation, or the sale of all or substantially all of the
Company's properties or assets to any other person (an “Organic
Change”), then as a part of such Organic Change an appropriate revision
to the Warrant Price shall be made if necessary and provision shall be made if
necessary (by adjustments of the Warrant Price or otherwise) so that, upon any
subsequent exercise of this Warrant, the Holder shall have the right to receive,
in lieu of Warrant Shares, the kind and amount of shares of stock and other
securities or property of the Company or any successor corporation resulting
from the Organic Change. In any such case, appropriate adjustment shall be made
in the application of the provisions of this Section
3(d) with respect to the rights of the Holder after the Organic Change to
the end that the provisions of this Section
3(d) (including any adjustment in the Warrant Price then in effect and
the number of shares of stock or other securities deliverable upon exercise of
this Warrant) shall be applied after that event in as nearly an equivalent
manner as may be practicable.  In any such case, the resulting or
surviving corporation (if not the Company) shall expressly assume the
obligations to deliver, upon the exercise of this Warrant, such securities or
property as the Holder shall be entitled to receive pursuant to the provisions
hereof, and to make provisions for the protection of the rights of the Holder as
provided above.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (d)           No Impairment. The
Company shall not, by amendment of its Articles of Incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed
hereunder, but will at all times in good faith assist in the carrying out of all
the provisions of this Section
3 and in the taking of all such action as may be necessary or appropriate
in order to protect against impairment the right of the Holder to exercise this
Warrant. In the event the Holder shall elect to exercise this Warrant, in whole
or in part, as provided herein, the Company cannot refuse exercise based on any
claim that the Holder or anyone associated or affiliated with such holder has
been engaged in any violation of law, unless (i) the Company receives an order
from the Securities and Exchange Commission prohibiting such exercise or (ii) an
injunction from a court, on notice, restraining and/or adjoining exercise of
this Warrant.

     

    (e)           Certificates as to
Adjustments. Upon occurrence of each adjustment or readjustment of the
Warrant Price or number of shares of Common Stock for which this Warrant is
exercisable pursuant to this Section
3, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to the Holder a
certificate setting forth such adjustment and readjustment, showing in detail
the facts upon which such adjustment or readjustment is based. The Company
shall, upon written request of the Holder, at any time, furnish or cause to be
furnished to the Holder a like certificate setting forth such adjustments and
readjustments, the Warrant Price in effect at the time, and the number of shares
of Common Stock and the amount, if any, of other securities or property which at
the time would be received upon the exercise of this Warrant. Notwithstanding
the foregoing, the Company shall not be obligated to deliver a certificate
unless such certificate would reflect an increase or decrease of at least one
percent of such adjusted amount; if the Company so postpones delivering a
certificate, such prior adjustment shall be carried forward and made as soon as
such adjustment, together with other adjustments required by this Section
3 and not previously made, would result in an adjustment of one percent
or more.

     

    (f)           Issue Taxes. The
Company shall pay any and all issue and other taxes, excluding federal, state or
local income taxes, that may be payable in respect of any issue or delivery of
shares of Common Stock on exercise of this Warrant; provided, however, that the
Company shall not be obligated to pay any transfer taxes resulting from any
transfer requested by any holder in connection with any such
conversion.

     

    (g)           Fractional Shares. No
fractional shares of Common Stock shall be issued upon exercise of this Warrant.
In lieu of any fractional shares to which the Holder would otherwise be
entitled, the Holder shall round the number of shares to be issued upon exercise
up to the nearest whole number of shares.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (h)           Reservation of Common
Stock. The Company shall, during the period within which this Warrant may
be exercised, reserve and keep available out of its authorized and unissued
Common Stock, solely for the purpose of effecting the exercise of this Warrant,
such number of shares of Common Stock equal to at least one hundred ten percent
(110%) of the aggregate number of shares of Common Stock as shall from time to
time be sufficient to effect the exercise of this Warrant.

     

    (i)           Retirement of this
Warrant. Exercise of this Warrant shall be deemed to have been effected
on the date of exercise hereof. Upon exercise of this Warrant only in part, the
Company shall issue and deliver to the Holder, at the expense of the Company, a
new Warrant covering the unexercised balance of the Warrant Shares.

     

    (j)           Regulatory
Compliance. If any shares of Common Stock to be reserved for the purpose
of exercise of this Warrant require registration or listing with or approval of
any governmental authority, stock exchange or other regulatory body under any
federal or state law or regulation or otherwise before such shares may be
validly issued or delivered upon conversion, the Company shall, at its sole cost
and expense, in good faith and as expeditiously as possible, endeavor to secure
such registration, listing or approval, as the case may be.

     

    4.           No Preemptive Rights.
The Holder shall not be entitled to rights to subscribe for, purchase or receive
any part of any new or additional shares of any class, whether now or
hereinafter authorized, or of bonds or debentures, or other evidences of
indebtedness convertible into or exchangeable for shares of any class, but all
such new or additional shares of any class, or any bond, debentures or other
evidences of indebtedness convertible into or exchangeable for shares, may be
issued and disposed of by the Board on such terms and for such consideration (to
the extent permitted by law), and to such person or persons as the Board in its
absolute discretion may deem advisable.

     

    5.           Exercise Restriction.
Notwithstanding anything to the contrary set forth in this Warrant, at no time
may the Holder exercise this Warrant, in whole or in part, if the number of
shares of Common Stock to be issued pursuant to such exercise would cause the
number of shares of Common Stock beneficially owned by the Holder and its
affiliates at such time, when aggregated with all other shares of Common Stock
beneficially owned by the Holder and its affiliates at such time, result in the
Holder beneficially owning (as determined in accordance with Section 13(d) of
the Securities Exchange Act of 1934, as amended, and the rules thereunder) in
excess of 9.99% of the then issued and outstanding shares of Common Stock
outstanding at such time; provided, however, that upon
the Holder providing the Company with sixty-one (61) days notice (pursuant to
Section
11 hereof) (the "Waiver
Notice") that the Holder would like to waive Section
5 of this Warrant with regard to any or all shares of Common Stock for
which this Warrant is exercisable, this Section
5 shall be of no force or effect with regard to those shares referenced
in the Waiver Notice.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    6.           Registration
Rights.

     

          The
Holder of this Warrant is entitled to the benefit of certain registration rights
with respect to the shares of Warrant Shares issuable upon the exercise of this
Warrant, pursuant to that certain Registration Rights Agreement, of even date
herewith, by and among the Company and Persons listed on Schedule I thereto (the
“Registration
Rights Agreement”) and the registration rights with respect to the shares
of Warrant Shares issuable upon the exercise of this Warrant by any subsequent
Holder may only be assigned in accordance with the terms and provisions of the
Registrations Rights Agreement.

    

    7.           Definitions. For the
purposes of this Warrant, the following terms have the following
meanings:

    

    “Board”
shall mean the Board of Directors of the Company.

    

    “Capital
Stock” means and includes (i) any and all shares, interests,
participations or other equivalents of or interests in (however designated)
corporate stock, including, without limitation, shares of preferred or
preference stock, (ii) all partnership interests (whether general or limited) in
any Person which is a partnership, (iii) all membership interests or limited
liability company interests in any limited liability company, and (iv) all
equity or ownership interests in any Person of any other type.

    

    “Articles
of Incorporation” means the Amended and Restated Certificate of
Incorporation of the Company as in effect on the Original Issue Date, and as
hereafter from time to time amended, modified, supplemented or restated in
accordance with the terms hereof and thereof and pursuant to applicable
law.

    

    “Common
Stock” means the Common Stock, $0.01 par value per share, of the Company
and any other Capital Stock into which such stock may hereafter be
changed.

    

     “Governmental
Authority” means any governmental, regulatory or self-regulatory entity,
department, body, official, authority, commission, board, agency or
instrumentality, whether federal, state or local, and whether domestic or
foreign.

    

    “Holders”
mean the Persons who shall from time to time own any Warrant. The term “Holder”
means one of the Holders.

    

    “Initial
Holder” has the meaning set forth on the first page of this
Warrant.

    

    “Company”
means Gulfstream International Group, Inc. a Delaware corporation, and its
successors.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    “Original
Issue Date” means January 29, 2010.

    

    “Person”
means an individual, corporation, limited liability company, partnership, joint
stock company, trust, unincorporated organization, joint venture, Governmental
Authority or other entity of whatever nature.

    

    “Purchase
Agreement” means the Unit Purchase Agreement dated as of January 29,
2010, among the Company and the Initial Holder.

    

    “Purchasers”
means the Initial Holder and the other purchasers of the Units of Common Stock
and the Warrants issued by the Company pursuant to the Purchase
Agreement.

    

    “Securities”
means any debt or equity securities of the Company, whether now or hereafter
authorized, any instrument convertible into or exchangeable for Securities or a
Security, and any option, warrant or other right to purchase or acquire any
Security. "Security" means one of the Securities.

    

    “Securities
Act” means the Securities Act of 1933, as amended.

    

    “Subsidiary”
means any corporation at least 50% of whose outstanding Voting Stock shall at
the time be owned directly or indirectly by the Company or by one or more of its
Subsidiaries, or by the Company and one or more of its
Subsidiaries.

    

    “Term”
has the meaning specified in Section
1 hereof.

    

    “Warrants”
means the Warrants issued and sold pursuant to the Purchase Agreement,
including, without limitation, this Warrant (as defined in the Purchase
Agreement), and any other warrants of like tenor issued in substitution or
exchange for any thereof pursuant to the provisions hereof or of any of such
other Warrants.

    

    “Warrant
Price” initially means $3.00 per share, as such price may be adjusted
from time to time as shall result from the adjustments specified in this
Warrant, including Section
2 hereto.

    

    “Warrant
Share Number” means at any time the aggregate number of shares of Warrant
Shares which may at such time be purchased upon exercise of a Warrant, after
giving effect to all prior adjustments and increases to such number made or
required to be made under the terms hereof.

    

    “Warrant
Shares” means the shares of Common Stock issuable upon exercise of this
Warrant.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    8.           Other Notices. In
case at any time:

     

    (i) the
Company shall make any distributions to the holders of Common Stock;
or

     

    (ii) the
Company shall authorize the granting to all holders of its Common Stock of
rights to subscribe for or purchase any shares of Capital Stock of any class or
other rights; or

     

    (iii) there
shall be any reclassification of the Common Stock of the Company;
or

     

    (iv) there
shall be any capital reorganization by the Company; or

     

    (v) there
shall be any (i) consolidation or merger involving the Company or (ii) sale,
transfer or other disposition of all or substantially all of the Company's
property, assets or business (except a merger or other reorganization in which
the Company shall be the surviving corporation and its shares of Capital Stock
shall continue to be outstanding and unchanged and except a consolidation,
merger, sale, transfer or other disposition involving a wholly-owned
Subsidiary); or

     

    (vi) there
shall be a voluntary or involuntary dissolution, liquidation or winding-up of
the Company or any partial liquidation of the Company or distribution to holders
of Common Stock;

    

    then, in
each of such cases, the Company shall give written notice to the Holder of the
date on which (i) the books of the Company shall close or a record shall be
taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than ten (10) days prior
to the record date or the date on which the Company's transfer books are closed
in respect thereto. This Warrant entitles the Holder to receive copies of all
financial and other information distributed or required to be distributed to the
holders of the Common Stock.

    

    9.           Amendment and Waiver.
Any term, covenant, agreement or condition in this Warrant may be amended, or
compliance therewith may be waived (either generally or in a particular instance
and either retroactively or prospectively), by a written instrument or written
instruments executed by (a) the Company, (b) the Holder of this
Warrant.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    10.           Governing Law;
Jurisdiction. This Warrant shall be governed by and construed in
accordance with the internal laws of the State of New York, without giving
effect to any of the conflicts of law principles which would result in the
application of the substantive law of another jurisdiction. This Warrant shall
not be interpreted or construed with any presumption against the party causing
this Warrant to be drafted. The Company and the Holder agree that venue for any
dispute arising under this Warrant will lie exclusively in the state or federal
courts located in New York County, New York, and the parties irrevocably waive
any right to raise forum non
conveniens or any other argument that New York is not the proper venue.
The Company and the Holder irrevocably consent to personal jurisdiction in the
state and federal courts of the state of New York. The Company and the Holder
consent to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address in effect for notices to it
under this Warrant and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing in this Section
10 shall affect or limit any right to serve process in any other manner
permitted by law. The Company and the Holder hereby agree that the prevailing
party in any suit, action or proceeding arising out of or relating to this
Warrant or the Purchase Agreement, shall be entitled to reimbursement for
reasonable legal fees from the non-prevailing party. The parties hereby waive
all rights to a trial by jury.

    

    11.           Notices. All notices
and other communications hereunder shall be in writing and shall be deemed given
if delivered personally or by facsimile or three (3) business days following
being mailed by certified or registered mail, postage prepaid, return-receipt
requested, addressed to the holder of record at its address appearing on the
books of the Company. The Company will give written notice to the Holder at
least twenty (20) calendar days prior to the date on which the Company closes
its books or takes a record (i) with respect to any dividend or distribution
upon the Common Stock, (ii) with respect to any pro rata subscription offer to
holders of Common Stock or (iii) for determining rights to vote with respect to
any Organic Change, dissolution, liquidation or winding-up and in no event shall
such notice be provided to such holder prior to such information being made
known to the public. The Company will also give written notice to the Holder at
least twenty (20) days prior to the date on which any Organic Change,
dissolution, liquidation or winding-up will take place and in no event shall
such notice be provided to such holder prior to such information being made
known to the public. The addresses for such communications shall
be:

     

    If to the
Company:

    

    Gulfstream
International Group, Inc.

    3201
Griffin Road

    4th
floor

    Fort
Lauderdale, FL 33312

    Attn:
President

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    with
copies (which shall not constitute notice) to:

    

    Hodgson
Russ LLP

    1540
Broadway

    24th
floor

    New York,
New York 10036

    Attn:
Stephen A. Weiss, Esq.

    email:
sweiss@hodgsonruss.com

     

    If to the
Holder:

     

    At the
address set forth on the Purchaser Signature Page to the Purchase
Agreement.

    

    Any party
hereto may from time to time change its address for notices by giving written
notice of such changed address to the other party hereto.

     

    12.           Warrant Agent. The
Company may, by written notice to each Holder of this Warrant, appoint an agent
having an office in New York, New York for the purpose of issuing shares of
Warrant Shares on the exercise of this Warrant pursuant to subsection (b) of
Section
2 hereof, exchanging this Warrant pursuant to subsection (d) of Section
2 hereof or replacing this Warrant pursuant to Section
13 hereof, or any of the foregoing, and thereafter any such issuance,
exchange or replacement, as the case may be, shall be made at such office by
such agent.

    

    13.           Lost or Stolen
Warrant. Upon receipt by the Company of evidence satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant, and, in
the case of loss, theft or destruction, of any indemnification undertaking by
the Holder to the Company and, in the case of mutilation, upon surrender and
cancellation of this Warrant, the Company shall execute and deliver new Warrant
of like tenor and date; provided, however, that the
Company shall not be obligated to re-issue warrant(s) if the Holder
contemporaneously exercise this Warrant to purchase shares of Common
Stock.

    

    14.           Remedies, Characterizations,
Other Obligations, Breaches and Injunctive Relief. The remedies provided
in this Warrant shall be cumulative and in addition to all other remedies
available under this Warrant, at law or in equity (including a decree of
specific performance and/or other injunctive relief), no remedy contained herein
shall be deemed a waiver of compliance with the provisions giving rise to such
remedy and nothing herein shall limit a Holder's right to pursue actual damages
for any failure by the Company to comply with the terms of this Warrant. Amounts
set forth or provided for herein with respect to payments, conversion and the
like (and the computation thereof) shall be the amounts to be received by the
Holder thereof and shall not, except as expressly provided herein, be subject to
any other obligation of the Company (or the performance thereof). The Company
acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach
may be inadequate. The Company therefore agrees that, in the event of any such
breach or threatened breach, the Holder shall be entitled, in addition to all
other available remedies, to an injunction restraining any breach, without the
necessity of showing economic loss and without any bond or other security being
required.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    15.           Specific Shall Not Limit
General; Construction. No specific provision contained in this Warrant
shall limit or modify any more general provision contained herein. This Warrant
shall be deemed to be jointly drafted by the Company and all initial purchasers
of the Warrant and shall not be construed against any person as the drafter
hereof.

    

    16.           Successors and
Assigns. This Warrant and the rights evidenced hereby shall inure to the
benefit of and be binding upon the successors and assigns of the Company, the
Holder hereof and (to the extent provided herein) the Holders of Warrant Shares
issued pursuant hereto, and shall be enforceable by any such Holder or Holder of
Warrant Shares.

    

    17.           Modification and
Severability. If, in any action before any court or agency legally
empowered to enforce any provision contained herein, any provision hereof is
found to be unenforceable, then such provision shall be deemed modified to the
extent necessary to make it enforceable by such court or agency. If any such
provision is not enforceable as set forth in the preceding sentence, the
unenforceability of such provision shall not affect the other provisions of this
Warrant, but this Warrant shall be construed as if such unenforceable provision
had never been contained herein.

    

    18.           Headings. The
headings of the Sections of this Warrant are for convenience of reference only
and shall not, for any purpose, be deemed a part of this Warrant.

    

    

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the Company has executed this Warrant as of the day and year
first above written.

     

    

    
      
        	 	GULFSTREAM
      INTERNATIONAL GROUP, INC	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name: David Hackett	 
	 	 	Title: President	 
	 	 	 	 

      

     

     

    

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    EXERCISE
FORM

    WARRANT

    

    GULFSTREAM
INTERNATIONAL GROUP, INC.

    

    The
undersigned _______________, pursuant to the provisions of the accompanying
Warrant, hereby elects to purchase ________ shares of Common Stock of GULFSTREAM
INTERNATIONAL GROUP, INC. covered by the accompanying Warrant.

    

    Dated:
_________________                                Signature                      ___________________________

    

        
Address                      ___________________________

             
___________________________

    

    Number of
shares of Common Stock beneficially owned or deemed beneficially owned by the
Holder on the date of Exercise: _________________________

    

    The
undersigned is an “accredited investor” as defined in Regulation D under the
Securities Act of 1933, as amended.o
Yes       o No

     

    
      	
              The
      undersigned intends that payment of the Warrant Price shall be made as
      (check one):

            

    

     

    Cash
Exercise_______

     

    Cashless
Exercise_______ (cashless exercise is only available after July 1, 2010, a
registration statement under the Securities Act providing for the resale of this
Warrant and the Warrant Shares underlying this Warrant included in the Units
issued pursuant to the Purchase Agreement is not then in effect).

     

    If the
Holder has elected a Cash Exercise, the Holder shall pay the sum of $________ by
certified or official bank check (or via wire transfer) to the Company in
accordance with the terms of the Warrant.

     

    If the
Holder is entitled to and has elected a Cashless Exercise, a certificate shall
be issued to the Holder for the number of shares equal to the whole number
portion of the product of the calculation set forth below, which is ___________.
The Company shall pay a cash adjustment in respect of the fractional portion of
the product of the calculation set forth below in an amount equal to the product
of the fractional portion of such product and the Per Share Market Value on the
date of exercise, which product is ____________.

     

    X = Y -
(A)(Y)

      B

    

    
      	
              Where:

            

    

    

    
      	
              The
      number of shares of Common Stock to be issued to the Holder is
      (“X”).

            

    

    

    The
number of shares of Common Stock purchasable upon exercise of all of the Warrant
or, if only a portion of the Warrant is being exercised, the portion of the
Warrant being exercised is (“Y”).

    

    
      	
              The
      Warrant Price is (“A”).

            

    

    

    The Per
Share Market Value of one share of Common Stock is (“B”).

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    ASSIGNMENT

    

    FOR VALUE
RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the accompanying Warrant and all rights evidenced thereby and
does irrevocably constitute and appoint _____________, attorney, to transfer
said Series C Warrant on the books of the corporation named
therein.

    

    Dated:
_________________                                      Signature                     ___________________________

    

             
Address                     
 ___________________________

                    ___________________________

    

    PARTIAL
ASSIGNMENT

    

    FOR VALUE
RECEIVED, _________________ hereby sells, assigns and transfers unto
__________________ the right to purchase _________ shares of Warrant Shares
evidenced by the accompanying Warrant together with all rights therein, and does
irrevocably constitute and appoint ___________________, attorney, to transfer
that part of said Series C Warrant on the books of the corporation named
therein.

    

    Dated:
_________________                                     
Signature                     ___________________________

    

             
Address                     
 ___________________________

                    ___________________________

    
 

    FOR USE
BY THE COMPANY ONLY:

    

    This
Warrant No. ________ canceled (or transferred or exchanged) this _____ day of
___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. ________ issued for ____ shares of Common Stock in
the name of _______________.

    

      
        
           

        

        
          18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]