Document:

exv10w15

 

Exhibit 10.15

LEASE AGREEMENT

     THIS LEASE AGREEMENT made as of this 18th day of June, 2002, by and between Blount Realty
Partners, Ltd. (“LANDLORD”) and Gulfstream International Airlines, Inc., a Florida Corporation
(“TENANT”).

W I T N E S S E T H:

     LANDLORD desires to lease to TENANT and TENANT desires to rent from LANDLORD 545 N. W. 42nd
Avenue, Miami, Florida 33126 (a/k/a Store(s) No(s) 3 at the Shops of LeJeune, see Exhibit A
attached) (hereinafter referred to as the “Premises”), for the term hereinafter stated, for the
rents hereinafter reserved, and upon and subject to the terms, conditions and covenants hereinafter
provided. The commercial property at 525 — 545 N. W. 42nd Avenue, Miami, Florida is hereinafter
referred to as the “Shopping Center”.

     1. TERMS: The term of this Lease shall commence on August 1, 2002 (hereinafter
referred to as the “Commencement Date”) and shall continue for three (3) years through July 31,
2005, unless sooner terminated or extended in accordance with the terms hereof.

     2. RENT AND ADDITIONAL RENT: The rent reserved under this Lease for the term hereof
shall be and consist of:

     (a) During the first year of this Lease, TENANT shall pay to LANDLORD the sum of $3,958.00 per
month, plus sales tax. The rent shall increase during each subsequent year of this Lease as
follows:

          (I) $4,096.00 per month, plus sales tax commencing on August 1, 2003 for the second lease year
(August 1, 2003 to July 31, 2004);

          (ii) $4,240.00 per month, plus sales tax commencing on August 1, 2004 for the third lease year
(August 1, 2004 to July 31, 2005);

          Such rent always being paid in advance in equal monthly installments on the first (1st) day of
each month. A lease year shall be each period of 12 calendar months beginning on the Commencement
Date.

     (b) As additional rent during the term of this Lease, TENANT shall pay to LANDLORD an amount
equal to TENANT’s Prorata Share of the real estate taxes for the Shopping Center in excess of the
amount of the real estate taxes for the Shopping Center during the calendar year 2002. Furthermore,
as additional rent during the term of this Lease, TENANT shall pay to LANDLORD an amount equal to
the TENANT’s Prorata Share of all insurance premiums for the Shopping Center paid by LANDLORD in
excess of the amount of insurance premiums for the Shopping Center paid by the LANDLORD during the
calendar year 2002. Furthermore, as additional rent during the term of this Lease, TENANT shall pay
to LANDLORD an amount equal to the TENANT’s Prorata Share of all assessments, special or otherwise,
imposed against the Shopping Center. TENANT’s Prorata Share shall be the gross

 

 

rentable area of the Premises divided by the gross rentable area of all the buildings at the
Shopping Center on the last day of the calendar year for which the insurance premiums, taxes and
assessments are being determined. For purposes of this Lease, TENANT’s Prorata Share is
conclusively agreed to be 34.6 percent (1,900/5,500 = .346). Any amount payable by TENANT under
this paragraph shall be deemed to be rent and shall be collectible and be paid as additional rent
within fifteen (15) days after demand by LANDLORD.

     © All taxes in the nature of sales or use, now or hereafter assessed or levied by any taxing
authority upon the payment of rent or additional rent, and which LANDLORD is required or permitted
to collect from TENANT, shall be payable simultaneously with the payment of rent.

     All rent and additional rent due hereunder shall be paid to LANDLORD without demand, deduction
or set off, at its office, or such agent or to such other place as LANDLORD may designate by notice
to TENANT, in lawful money of the United States of America. LANDLORD may at any time, and at its
option, require TENANT to pay the rent, additional rent and any other payment required to be made
to LANDLORD under this Lease, in cash or cashier’s check. Rent shall be paid to:

BLOUNT REALTY PARTNERS, LTD.

1501 VENERY AVENUE, SUITE 217

CORAL GABLES, FLORIDA 33146

     Without limitation of any rights of LANDLORD under this Lease, any rent, additional rent or
other payment not made within five (5) days after the date when due shall require payment of a late
charge in an amount equal to five (5%) percent of the amount then due.

     3. DEPOSIT: TENANT, simultaneously with the execution and delivery of this Lease has
deposited with LANDLORD the sum of $23,748.00, the receipt of which is hereby acknowledged, which
sum shall be retained by LANDLORD as security for the payment by TENANT of the rents herein agreed
to be paid by TENANT and for the faithful performance by TENANT of the terms, conditions and
covenants of this Lease. It is agreed that LANDLORD, at LANDLORD’s option, may at any time apply
said sum or any part hereof toward the payment of the rents and any other sum payable by TENANT
under this Lease, and/or toward the performance of each and every one of TENANT’s covenants under
this Lease, but such covenants and TENANT’s liability under this Lease shall thereby be discharged
only pro tanto; that TENANT shall remain liable for any amounts that such sum shall be insufficient
to pay; that LANDLORD may exhaust any or all rights and remedies against TENANT before resorting to
said sum, but nothing herein contained shall require or be deemed to require LANDLORD to do so;
that LANDLORD shall not be required to pay TENANT any interest on said security deposit. Promptly
upon demand by LANDLORD, TENANT shall deposit with LANDLORD such additional sum as may be necessary
to replace any amounts expended therefrom by LANDLORD pursuant to the provisions hereof, so that
there shall always be a security deposit in the sum first set forth above. (See Addendum for
additional conditions).

 

 

     4. USE: TENANT will use and occupy the premises for no use or purpose other than for
an airline travel office.

     5. CONDITION OF PREMISES: TENANT acknowledges that it has had an adequate opportunity
to inspect the Premises and that they are suitable for TENANT’s purpose. TENANT agrees to accept
the Premises in their present “AS IS, WHERE IS” condition, except for work to be performed by the
LANDLORD under Landlord’s work (Exhibit C, attached) of this lease. LANDLORD makes no
representations or warranties relating to the fitness of the Premises for any purpose, including
but not limited to TENANT’s intended use thereof. Nor does LANDLORD make any representations or
warranties regarding the Premises’s compliance with applicable building and zoning codes, rules,
laws and regulations for TENANT’s intended use.

     6. UTILITIES: TENANT agrees to pay for all utilities used and consumed on the
Premises, including but not limited to gas, electricity, telephone, water and sewer charges and
garbage and trash collection and removal services.

(See Addendum for electricity charge clause and water/sewer charge clause)

     7. TAXES: TENANT shall be responsible for and shall pay before delinquency all
municipal, county or state taxes assessed during the term of this Lease against any leasehold or
personal property of any kind owned by or placed in, upon or about the Premises by TENANT. Further,
TENANT shall pay all applicable sales taxes due in connection with the operation of its business on
the Premises.

     8. COMMON AREAS: TENANT, TENANT’s employees, guests and invitees, shall have a
non-exclusive easement to use (in common with others) the automobile parking areas, existing from
time to time, in the Shopping Center.

     9. ASSIGNMENT: Without the written consent of LANDLORD, first obtained in each case,
TENANT shall not assign, sublet, transfer, mortgage, pledge or otherwise encumber or dispose of
this Lease during the term hereof, or sublet the Premises or any part thereof or permit the
Premises to be occupied by any other persons. If this Lease be assigned, or if the Premises or any
part thereof be sublet or occupied by anybody other than TENANT, LANDLORD may, at LANDLORD’s
option, after default by TENANT, collect rent from the assignee, subtenant or occupant and apply
the net amount collected to the rent herein reserved, but no such collection shall be deemed a
waiver of this covenant, or the acceptance of the assignee, subtenant or occupant as TENANT or a
release of TENANT from the further observance and performance by TENANT of the covenant herein
contained.

     10. ALTERATIONS AND REPAIRS: TENANT will, at TENANT’s sole cost and expense, keep the
Premises in good repair and tenantable condition during the term of this Lease. By way of example
and not by limitation, TENANT shall replace, at its expense, all broken or scratched glass in and
about the Premises; TENANT is responsible for the maintenance and repair of all doors, windows and
any existing aluminum hurricane shutters, and for exterminating services. TENANT will, at the
termination of this Lease by lapse of time or

 

 

otherwise, return the Premises to LANDLORD in as good condition as when received, ordinary
wear and tear and acts of God excepted.

          The maintenance of the whole of the Premises, including without limitation the operation and
maintenance of all electrical, mechanical, plumbing, heating, ventilating or air conditioning
systems (including replacement of any air conditioning unit) and all other services shall be the
sole responsibility of TENANT at TENANT’s expense. LANDLORD’s sole responsibility shall be the
maintenance of the roof of the Premises. Notwithstanding the foregoing, if during the first lease
year of this Lease the electrical, mechanical, plumbing, ventilation or air conditioning systems
require replacement or because they are beyond repair, then in such event, LANDLORD shall
be responsible for such required replacement. or repair.

          TENANT shall place no signs upon the Premises and shall make no alterations, additions,
installations, substitutions, improvements or decorations in or to the Premises without the prior
written consent of LANDLORD, which consent shall be subject to and upon such terms and conditions
as LANDLORD may require and stipulate in such consent, including without limitation, (a) physical
and spatial limitations, (b) governmental approvals, © payment, (d) bonding to guarantee the
payment of contractors’ fees, (e) indemnification, (f) liens, and (g) designation of approved
contractors and subcontractors. The cost of such work shall be born solely by TENANT. This clause
shall not be construed to mean that LANDLORD shall allow any mechanics’ liens upon the Premises
based upon work ordered by TENANT.

     11. DESTRUCTION OR DAMAGE: In the event that the Premises shall be destroyed or
damaged or injured by fire or other casualty during the term of this Lease, whereby all or a part
thereof shall be rendered untenantable, then LANDLORD shall have the right, to be exercised by
notice to TENANT within thirty (30) days after casualty, to render such Premises tenantable by
repairs within one hundred twenty (120) days therefrom subject to extension for delays faced by
LANDLORD due to adjustment of insurance proceeds, labor trouble, governmental controls, so-called
acts of God, or any other cause beyond LANDLORD’s reasonable control. If said Premises are not
rendered tenantable within said time, it shall be optional with either party hereto to cancel this
Lease, by written notice to the other, and in the event of such cancellation the rent shall be paid
only to the date of such fire or casualty. During any time that the Premises are untenantable due
to causes set forth in this paragraph, the rent or a just and fair proportion thereof shall be
abated.

          No damages, compensation or claim shall be payable by LANDLORD for inconvenience, loss of
business or annoyance arising from any repair or restoration of any portion of the Premises or of
the building pursuant to this paragraph. If LANDLORD exercises its right to restore Premises,
LANDLORD shall use its best efforts to effect such repair or restoration promptly and in such
manner as not unreasonably to interfere with TENANT’s use and occupancy.

          Notwithstanding any of the foregoing provisions of this paragraph, LANDLORD or the lessor of
any superior lease or the holder of any superior mortgage, as defined hereinafter, is unable to
collect all of the insurance proceeds (including rent insurance proceeds) applicable to damage or
destruction of the Premises or the building by fire or other

 

 

cause, by reasons of some action or inaction on the part of TENANT or any of its employees,
agents or contractors, then, without prejudice to any other remedies which may be available against
TENANT there shall be no abatement of TENANT’s rents, but the total amount of such rents not abated
(which would otherwise have been abated) shall not exceed the amount of uncollected insurance
proceeds.

          LANDLORD will not carry separate insurance of any kind on TENANT’s property and, except as
provided by law or by reason of its fault or its breach of any of its obligations hereunder, shall
not be obligated to repair any damage thereto or replace the same; to the extent that TENANT shall
maintain insurance on TENANT’s property, LANDLORD shall not be obligated to repair any damage
thereto or replace the same, except by negligence of LANDLORD.

     12. COMPLIANCE WITH LAWS, INSURANCE: TENANT shall, during the entire term of this
Lease, comply with all statutes, ordinances, rules, orders, regulations, and requirements of the
federal, state county, and city government, and of any and all their Departments and Bureaus
applicable to said Premises, including without limitation, all building, zoning and environmental
requirements, and shall also comply with all rules, orders and regulations of Southeastern
Underwriters Association for the prevention of fires, all at TENANT’s own cost and expense. If by
reason of any failure of TENANT to comply with the provisions of this paragraph, the rate of fire
insurance with extended coverage on the building or equipment or other property of LANDLORD shall
be higher than it otherwise would be, TENANT shall reimburse LANDLORD, on demand, for that part of
the premiums for fire insurance and extended coverage paid by LANDLORD because of such failure on
the part of TENANT. TENANT also agrees not to use the Premises for any purpose which would increase
the cost of fire and extended coverage insurance on the building in which the Premises are located.
Any use of the Premises which would increase such rate must be approved by LANDLORD before TENANT
may use the Premises for such purpose. In the event the use to which the Premises occupied by
TENANT are used, increases the insurance rates then TENANT shall pay to LANDLORD, as premiums are
paid by LANDLORD, amounts equal to the increased caused by that situation, TENANT’s use and
occupancy shall not vitiate the insurance contract.

     13. INSPECTION: LANDLORD shall have the right to enter the Premises during all
reasonable hours to examine the same and to make such repairs as LANDLORD may deem necessary or
appropriate and to exhibit the Premises to prospective tenants at any time during the last ninety
(90) days of this Lease, or to prospective purchasers or mortgagees at any time during the term
hereof with reasonable advance notice, and to put up “For Rent” or “For Sale” signs at any time
during the last ninety (90) days of this Lease.

     14. DEFAULT; LANDLORD’S REMEDIES: All rights and remedies of LANDLORD herein
enumerated shall be cumulative, and none shall exclude another or any other right or remedy
provided by law.

          (a) If TENANT or any guarantor of this Lease shall become bankrupt or insolvent or unable to
pay its debts as such become due, or file any debtor proceedings or if TENANT or any guarantor
shall take or have taken against either party in any court pursuant to

 

 

any statute either of the United States of any State, a petition in bankruptcy or insolvency
or for reorganization or for the appointment of a receiver or trustee of all or a portion of
TENANT’s or any such guarantor’s property, or if TENANT or any such guarantor makes an assignment
for the benefit of creditors, or petitions for or enters into an arrangement, then this Lease shall
terminate and LANDLORD, in addition to any other rights or remedies it may have, shall have the
immediate right of re-entry and may remove all persons and property from the Premises and such
property may be removed and stored in a public warehouse or elsewhere at the cost of and for the
account of TENANT, all without service of notice or resort to legal process and without being
deemed guilty of trespass, or becoming liable for any loss or damage which may be occasioned
thereby.

          (b) If TENANT defaults in the payment of rent or any additional rent or in the prompt and full
performance of any provisions of this Lease, or if the leasehold interest or TENANT’s business or
fixtures of TENANT are levied upon under execution or attached by process of law, or if TENANT
makes an assignment for the benefit of creditors, or if a receiver is appointed for any property of
TENANT, or if TENANT abandons the Premises, then and in such event LANDLORD may, if LANDLORD so
elects, but not otherwise, without any notice or demand whatsoever, forthwith terminate this Lease
and TENANT’s right to possession of the Premises, or terminate only TENANT’s right to possession
hereunder.

          © In the event of any default under this Lease, the entire rent for the remaining term of the
Lease shall be immediately due and payable.

          TENANT agrees to pay the cost of collection and all attorney’s fees incurred by LANDLORD to
collect any rent due hereunder or otherwise enforce the terms of this Lease, whether or not suit is
instituted and including any appellate proceedings. Failure on the part of LANDLORD to promptly
exercise any right hereunder shall not operate to forfeit or waive any of said rights.

     15. HAZARDOUS WASTE: TENANT warrants and represents that it has not and will not use
or employ the Premises to handle, transport, store, treat or dispose of any hazardous waste or
hazardous substances, whether or not it was generated or produced on the Premises; and TENANT
further warrants and represents that any activity on or relating to the Premises shell be conducted
in full compliance with all applicable laws.

          TENANT agrees to defend, indemnify and hold harmless LANDLORD against any and all Claims which
LANDLORD may hereafter be liable for, suffer, incur or pay arising under any applicable laws and
resulting from or arising out of any act, activity or violation of any applicable laws on the part
of TENANT, its agents, employees or assigns, and against any and all Claims which LANDLORD may
hereafter be liable for suffer, incur or pay resulting from or arising out of any handling,
storage, treatment, transportation, disposal, release of threat of release of hazardous waste or
hazardous substances from or on the Premises during the TENANT’s possession of the premises.

          Any violation on or breach of the provisions of this section shall be considered an event of
default pursuant to this Lease.

 

 

          For purposes of this section, “Claims” shall include and mean all actions, causes of action,
whether common law or statutory, remedies, demands, out-of-pocket costs, liability, charges, suits,
judgments, expenses, damage, personal injuries, property damage, incidental or consequential
damage, clean-up costs, civil penalties, attorney’s fees, litigation expanses, abatement costs,
abatement and corrective injunctive relief, injunctive relief requiring
removal and or remedial action, all costs of removal or remedial action and damages to natural
resources.

          For purposes of this section, “hazardous waste” or “hazardous substance” shall include and
mean any hazardous toxic, or dangerous waste, substance, or material, or any disposal, discharge,
release, or threatened release, or any defined as such in (or for purposes of) the federal
Comprehensive Environmental Response, Compensation, and Liability Act, or any other federal, state
or local statute, law, ordinance, code, rule, regulation, or decree regulating, relating to, or
imposing liability or standards of conduct concerning any hazardous, toxic, or dangerous waste,
substance, or material, as now or at any time hereafter in effect.

     16. SUBORDINATION: This Lease, and all rights of TENANT hereunder are and shall be
subject and subordinate to all ground leases, overriding leases and underlying leases affecting the
Premises now or hereafter existing and to all mortgages which may now or hereafter affect the
Premises and to each and every advance made or hereafter to be made under such mortgages, and to
all renewals, modifications, replacements and extensions of such leases and mortgages and spreaders
and consolidations of such mortgages (which leases and mortgages are sometimes collectively
referred to herein for convenience as the “superior lease” and “superior mortgage”). This paragraph
shall be self-operative and no further instrument of subordination shall be required to make it
effective, however, TENANT shall promptly execute and deliver any instrument reasonably requested
to evidence such subordinations.

     17. INDEMNIFICATION: In consideration of the Premises being leased to TENANT by
LANDLORD for the rentals herein specified, the TENANT agrees that TENANT at all times, will
indemnify and keep harmless LANDLORD and its officers, directors, agents and employees from all
losses, damages, liabilities and expenses (inducing reasonable attorney’s fees and court costs at
trial and all appellate levels) whatsoever, incurred by reason of: (a) any injuries or damages to
the persons or property of any persons, firms or corporations, consequent upon or arising from or
out of any occurrence in, upon or at the Premises or from or growing out of the use or occupancy of
the Premises by TENANT, its agents, employees, visitors or invitees, or occasioned wholly or in
part by any act or omission of TENANT, its agents, employees, visitors or invitees, except when
such injury or damage results from the gross negligence or willful misconduct of LANDLORD, (b)
TENANT’s failure to comply with any of the terms and provisions of this Lease, © TENANT’s failure
to comply with any laws, statutes, ordinances, rules, orders, codes or regulations as herein
provided, or (d) any work or anything whatsoever done by the TENANT on or about the Premises or
from transactions of the TENANT concerning the Premises.

     All personal property placed or moved into or unto the Premises shall be at the risk of TENANT
or the owner thereof, LANDLORD shall not be liable to TENANT for any damage to said personal
property. LANDLORD shall not be liable to TENANT, TENANT’s

 

 

agents, employees, or invitees for any injury or damage that may result to any —
property (including, without limitation, any of TENANT’s property) by or from any cause whatsoever,
including, without limitation, any act or omission of any co-tenant or occupants of the Center or
of any other entity or person whomsoever (without limiting the generality of the foregoing, whether
caused by gas, fire, oil, electricity, bursting of pipes or defective construction or maintenance)
in, on or about the Premises, or any part thereof, and TENANT covenants not to bring or abet any
such action.

     In case LANDLORD shall be made a party to any litigation commenced by or against TENANT, then
TENANT shall protect and hold LANDLORD harmless and shall pay al costs, expenses and reasonable
attorney’s fees incurred or paid by LANDLORD in connection with such litigation and any appeal
thereof.

     The indemnities in this Section 17 shall survive termination or expiration of this Lease.

     18. INSURANCE:

          (a) TENANT shall at all times during the term hereof keep in force, at its own expense,
general liability insurance with companies acceptable to LANDLORD and naming as insured both
LANDLORD and TENANT, with minimum limits of Two Million and 00/100 ($2,000,000.00) Dollars combined
single limit for personal injury, bodily injury or death, or property damage or destruction
(including loss of use thereof) for any one occurrence. This general liability policy shall include
the Premises operations, products, contractual, and personal liability.

          (b) TENANT shall, during the entire term hereof, keep in force, at its own expense, a policy
of insurance upon all the plate glass in the Premises, in which policy both LANDLORD and TENANT
shall be named as parties covered thereby as their respective interest may appear.

          © TENANT shall, at all times during the term hereof, keep in force, at its own expense, fire
insurance with extended coverage with companies acceptable to LANDLORD, equal to the replacement
cost of TENANT’s betterments and improvements on the Premises, and naming LANDLORD as an insured,
to the extent of such betterments and improvement.

          (d) TENANT will furnish LANDLORD, on or before TENANT takes possession, copies of policies or
certificates of insurance evidencing coverages required by this Lease. All policies required
hereunder shall contain an endorsement providing that the insurer will not cancel or materially
change the coverage of said policy or policies without first giving thirty (30) days prior written
notice thereof to LANDLORD, and shall be issued by an insurance company rated A-10 or better.

     19. LIENS: TENANT herein shall not have any authority to create any liens for labor or
material on LANDLORD’s interest in the Premises, and all persons contracting with TENANT for the
doing of any work or the furnishing of any materials on or to the Premises, and all materialmen,
contractors, mechanics and laborers, are hereby charged with notice that they

 

 

must look to TENANT only to secure the payment of any bill for work done or material furnished
during the term of this Lease. TENANT agrees to execute and deliver to LANDLORD, without charge, a
memorandum of lease in recordable form, containing a confirmation that the interest of LANDLORD
shall not be subject to liens for labor or material contracted for by TENANT.

          Should any mechanic’s or other lien be filed against the Premises or any part thereof for any
reason whatsoever by reason of TENANT’s acts or omissions or because of a claim against TENANT,
TENANT shall cause the same to be canceled and discharged of record by bond or otherwise within ten
(10) days after the date of such filing or be deemed to be in breach of this Lease. In no event
shall anything contained in this Paragraph, or elsewhere in this Lease be deemed to subject
LANDLORD’s interest in the Premises to the lien of any person doing work for or furnishing
materials at the instance and request of TENANT.

     20. EXCULPATION; TRANSFER BY LANDLORD: TENANT agrees that it shall look solely to the
estate and property of LANDLORD in the land and building of which the Premises are a part for the
collection of any judgment (or any other judicial process) requiring the payment of money by
LANDLORD in the event of any default or breach by LANDLORD with respect to any of the terms,
covenants and conditions of this Lease to be observed and performed by LANDLORD and no other
property or estates of LANDLORD shall be subject to levy, execution or other enforcement procedures
for the satisfaction of TENANT’s remedies.

          In the event that the interest or estate of LANDLORD in the Premises shall terminate by
operation of law or by bona fide sale of the Premises or by execution or foreclosure sale, or for
any other reason, then and in any such event LANDLORD shall be released and relieved from all
liability and responsibility as to obligations to be performed by LANDLORD hereunder or otherwise.
In such event LANDLORD’s successor shall as a condition of such sale or transfer become liable and
responsible to TENANT in respect to all such obligations of LANDLORD under this Lease.

     21. NOTICES: Whenever notice shall be required or permitted herein, it shall be
delivered by hand delivery or certified mail, with return receipt requested and shall be deemed
delivered on the date shown on the delivery date on the return receipt or the date shown as the
date same was refused or the postal service was unable to deliver same, as follows:

	 	 	 	 	 
	 

	 	IF TO LANDLORD
	 	BLOUNT REALTY PARTNERS, LTD.

1501 VENERA AVENUE, SUITE 217

CORAL GABLES, FLORIDA 33146

	 
	 	 	 	 
	 

	 	IF TO TENANT:
	 	GULFSTREAM INTERNATIONAL
AIR, INC.

1815 Griffin Road, Suite 400

Dania Beach, Florida 33004

or, to such other address as hereafter designated by the parties in a notice to the other.

 

 

     22. BROKERAGE: There is no broker involved in this transaction. Each party covenants,
warrants and represent that no broker was involved in consummating this Lease, and each agrees to
indemnify and hold the other harmless from and against any and all commissions, damages, costs and
attorneys’ fees incurred as a result of the inaccuracy of this warranty.

     23. CONDEMNATION/EMINENT DOMAIN: In the event that all or substantially all of the
Premises are taken through the exercise of the power of eminent domain or are purchased by any
governmental or quasi-governmental authority having the right to exercise such power through a
negotiated purchase and sale in lieu of formal condemnation proceedings, both of which events shall
hereinafter be referred to as a “taking”, this Lease shall terminate as of the date of such taking
and any rent or other charges paid by TENANT to LANDLORD pursuant to the Lease, which is then
unearned, shall be returned to TENANT within thirty (30) days following TENANT’S vacation of the
Premises. If part, but not all or substantially all, of the Premises are taken in the manner
described above, and, in the sole and absolute discretion of the LANDLORD, such taking does not
render the Premises unsuitable for their continued use by TENANT, this Lease shall continue in full
force and effect without the abatement or reduction in rent or any other charges payable under the
Lease by TENANT to LANDLORD. Should LANDLORD determine, however, in its sole and absolute
discretion, that such taking has a materially adverse effect upon TENANT’S continued use and
possession of the Premises, LANDLORD may either terminate the Lease by written notice to TENANT
delivered not later than thirty (30) days subsequent to the date of taking, or reduce TENANT’S rent
otherwise payable pursuant to the Lease, in an amount to be determined solely by LANDLORD, in which
event the Lease shall not terminate but shall continue in full force and effect throughout the term
specified therein.

     In addition to those rights granted to LANDLORD above, LANDLORD shall have the right, at its
sole cost and expense, and at its discretion, to repair, restore, remodel and/or renovate the
Premises in the event of a partial taking in order to restore the Premises and any buildings
thereon to a complete architectural unit, in order to bring any buildings or improvements upon the
Premises into compliance with applicable laws, rules and ordinances, or in order to cure or
otherwise remedy the effects of a taking which affects parking or access.

     In the event of any taking described above (i.e. total, substantially total, or partially, all
sums payable for the taking of all or any part of the Premises, whether designated as full
compensation, damages, or otherwise, and whether paid as a result of a negotiated settlement either
prior to, during or subsequent to formal condemnation proceedings, all of which forms of payment
are hereinafter referred to as “awards”, and regardless of whether or not such awards represent
compensation for the taking of land, site improvements, buildings, structures, leasehold
improvements, fixtures, trade fixtures, special process systems, immovable personal property, or
the value of intangible property, such as access rights or the benefits of any variances or
non-conforming use ordinances, shall be and remain the sole and separate property of LANDLORD free
from any claims or demands therefore, or for a portion of same, by TENANT who hereby assigns all of
its right, title and interest in and to any such awards unto LANDLORD. TENANT accordingly waives,
relinquishes and assigns unto LANDLORD all apportionment rights of TENANT to and in any award
payable for the taking of all or any portion of the Premises and property more fully described
above.

 

 

     Notwithstanding the foregoing, however, the provisions of this Paragraph Number 23 shall not
serve to preclude TENANT from asserting a claim against the condemning authority or agency, but not
against LANDLORD, for TENANT’S business damages resulting from any such taking or, should the Lease
be terminated by LANDLORD in the manner described above, for TENANTS moving and relocation
expenses. Should LANDLORD terminate this Lease as a result of a taking, TENANT shall also be
entitled to remove from the Premises all of TENANT’S movable personal property.

     24. STATUTORY RADON DISCLOSURE: The following disclosure is required by Florida
Statute Section 404.056(8):

RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a
building in sufficient quantities, may present health risks to persons who an exposed to it over
time. Levels of radon that exceed federal and state guidelines have been found in buildings in
Florida. Additional information regarding radon and radon testing may be obtained from your county
public health unit.

     25. TIME IS OF THE ESSENCE: Time Is of the essence with respect to all obligations of
the parties hereunder.

     26. ENTIRE AGREEMENT: This Lease contains the entire agreement between the parties
hereto and all previous negotiations leading hereto, and it may be modified only by an agreement in
writing signed and sealed by LANDLORD and TENANT.

     27. FEES AND OTHER CHARGES. Notwithstanding anything herein to the contrary, TENANT
shall be responsible, at TENANT’s sole cost and expense, for the payment of all licenses,
assessments, fines, fees or charges, including, but no limited to, impact fees and water and/or
sewer connection charges, related to TENANT’s use or occupancy of the Premises when such costs
become due and payable. TENANT, at TENANT’s sole expense, shall be responsible for bringing the
Premises up to code for TENANT’s work, if necessary.

     28. NO OPTION. The submission by LANDLORD to TENANT of this Lease shall be deemed
solely for TENANT’S consideration and not for acceptance. Such submission shall have no binding
force or effect, shall not constitute an option for the leasing of the premises herein described,
nor confer any rights or impose any obligations upon either party. The execution and return of this
Lease by TENANT to LANDLORD shall be deemed TENANT’s offer to lease the Premises. This Lease shall
have no binding force and effect unless and until TENANT and LANDLORD shall have executed this
Lease and a duplicate executed original hereof shall have been returned by LANDLORD to TENANT.

     29. WAIVER OF JURY TRIAL: TENANT HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION PROCEEDINGS OR
COUNTERCLAIMS ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS LEASE. TENANT ACKNOWLEDGES THAT
LANDLORD HAS BEEN INDUCED TO ENTER INTO THIS LEASE BY, INTER ALIA, THE PROVISIONS OF THIS SECTION.

 

 

     IN WITNESS WHEREOF, the parties have hereunto executed this instrument, the day and year first
above written.

	 	 	 	 	 	 	 
	Signed, sealed and delivered

in the presence of:

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	WITNESSES:	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	BLOUNT REALTY PARTNERS, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Print Name

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	NAME:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Print Name

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	GULFSTREAM INTERNATIONAL
AIRLINES, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Thomas P. Cooper	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Elizabeth Lerner
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Elizabeth Lerner
 

Print Name

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 
	Thomas P. Cooper
	 	 
	 

	 	
	 	 	 
	 	 	 	 	Sr. VP – Legal Affairs	 	 
	 

	 	NAME:
	 	Thomas P. Cooper	 	 
	 

	 	 	 	 	 	 
	/s/ Hermila Perez
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Hermila Perez
 

Print Name

	 	 	 	 	 	 

 

 

ADDENDUM (CONTINUED)

     IN WITNESS WHEREOF, the parties hereto have executed this Addendum on this 18 day of
June, 2002.

	 	 	 	 	 	 	 
	WITNESSES:	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	BLOUNT REALTY PARTNERS, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ David N. Blount, Jr.	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Richard E. Suarez
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Richard E. Suarez
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	Genera Partner	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	NAME: 
	 	David N. Blount, Jr.	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Rolando Navarrete
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Rolando Navarrete
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	GULFSTREAM INTERNATIONAL

AIRLINES, INC., a Florida corporation	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Thomas P. Cooper	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Elizabeth Lerner
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Elizabeth Lerner
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	Thomas P. Cooper	 	 
	 

	 	 	 	 	 	 
	 	 	                Sr. VP – Legal Affairs	 	 
	 

	 	NAME:
	 	Thomas P. Cooper	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Hermila Perez
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Hermila Perez
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name
	 	 	 	 	 	 

 

 

Exhibit A

(Site Plan)

[DRAWING]

 

 

Exhibit B

(Sign Requirements)

1. All signs must be approved by the Landlord and located in designated sign space areas as
directed by the Landlord.

2. Tenants will be permitted to use their logos, however, all signs will be individual channel
letter type signs.

3. No Letter will exceed 30” in height and shall not be less than 12” in height.

4. Signs
shall be comprised of a single row and the length of the entire sign shall not exceed 50
percent of the Tenant’s store frontage. Signs shall be centered.

5 No exposed lighting or box type signs will be permitted. Sign letters will have a Plexiglas front and back lighting.

6. Signs will have no moving parts or flashing lights.

7. All signs must meet requirements of the City of Miami and Tenant shall obtain all required
permits from the City prior to installation.

8. The above are general guidelines and no signs may be installed by the Tenant without written
approval of the Landlord.

 

 

Exhibit C

(Landlords Work)

The responsibilities between Landlord and Tenant shall be hereinafter set forth. Landlord’s Work
shall be done at Landlords sole cost and expense in accordance with applicable building codes and
in accordance with Landlord’s plans and specifications. Tenant’s Work shall be done at Tenant’s
sole cost and expense in accordance with applicable building codes and be completed within thirty
(30) days after completion of Landlord’s Work.

Landlord’s Work

The Leased premises are to be delivered by Landlord to Tenant in “as is” condition with the
following exceptions. Landlord shall provide the following:

Storefront and door on west wall of building in accordance with Landlord’s plans and
specifications.

Existing electrical service. Any increase in electrical service above existing service shall be
installed and paid by Tenant. Meter and deposits to be paid by Tenant.

Signage wiring from panel exterior wall in accordance with Landlord’s plans and specifications.

Existing bathroom.

Any increase in water/sewer service above existing lines shall be installed by tenant. Meter and
any deposits shall be paid by Tenant. Tenant shall also pay for meter connection and any impact
fee.

Second Bathroom in accordance with Landlord’s plans and specifications.

Existing rear door

Existing Air Conditioning Unit in working order. Landlord will install additional ductwork, if
needed, in accordance with Landlord’s plans and specifications.

Acoustical tile and ceiling, in accordance with Landlord’s plans and specifications.

Interior partitioning (as detailed on attached sketch)

Ceiling lighting fixtures. Standard 2 x 4 fixtures in accordance with Landlord’s plans and
specifications.

$1 per square foot floor credit to be applied towards rent upon installation of Tenant flooring by
Tenant.

Except for above, Property Is being leased “AS IS, WHERE IS” condition.

 

 

Tenants Work 

Interior painting

Electrical, exclusive of wiring supplied by Landlord

Signage and wiring, exclusive of wiring supplied by Landlord

Security system

All other interior build out not included under Landlord’s work.

 

 

Exhibit C (continued)

All personal property, interior plumbing exclusive of supplied bathrooms, permits, license and
insurance for all Tenant’s Work.

Insurance

Tenant and/or Tenant’s contractor or sub-contractors shall be required to provide in addition to
the insurance required to be maintained by the Tenant, the following types of insurance and the
following minimum amounts naming Landlord and any other persons having an interest in the said
Shopping Center as additional insured as their interest may appear, issued by companies approved by
the Landlord.

A.) Workmen’s Compensation coverage with limits of at least $500,000.00 for the employer’s
liability coverage thereunder.

B.) Builder’s Risk-Completed Value fire and extended coverage covering damage to the construction
and improvements to be made by Tenant in an amount at least equal to the estimated completed cost
of said construction and improvements with 100% coinsurance protection.

C.) Automobile Liability coverage with bodily injury limits of at least $500,000.00 per person,
$1,000,000.00 per accident and $500,000.00 accident property damage.

D.) Payment and performance bonds for 100% of the value of Work to be accomplished. All bonds

 

 

GUARANTY

     IN CONSIDERATION of the renting of the above Premises to the above named TENANT and the sum of
Ten ($10) Dollars paid by the undersigned to LANDLORD, the undersigned hereby covenants and agrees
to and with LANDLORD, and LANDLORD’s legal representatives, successors and assigns, that if default
shall at any time be made by the said TENANT in the payment of the rent, any item of additional
rent, or the performance of the covenants contained in the above named Lease on TENANT’s part to be
paid or performed, the undersigned will pay the said rent, additional rent, or any arrears thereof
that may remain due LANDLORD, and all damages that may arise as a result of the nonperformance of
said covenants including court costs and attorney fees, without requiring notice of any such
default from LANDLORD. This Agreement may not be modified, discharged or terminated orally or in
any other manner than by an agreement in writing signed by both parties hereto or their respective
successors or assigns.

Dated June       , 2002

	 	 	 	 	 
	WITNESSES:

	 	GUARANTOR:	 	 
	 
	 	 	 	 
	 

	 	,
	 	 
	 

	 	 	 	 
	 

	 	Thomas Cooper, Individually	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

Print Name

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

Print Name

	 	 	 	 

DELETED

 

 

ADDENDUM

          This is an Addendum to that certain Lease Agreement dated June 18, 2002, by and
between Blount Realty Partners, Ltd. (“LANDLORD”) and Gulfstream International Airlines, Inc., a
Florida Corporation (“TENANT”).

1.) Electricity Charge: Electricity service for the demised premises, as of the date of the lease,
is on a common meter with the adjacent Store No. 2. An on-demand meter monitors usage at the spaces
(Store 2 and Store 3). The Landlord will furnish the Tenant with a monthly bill for electricity
charges based on a pro-rata share of the total monthly charge. For purposes of this electricity
tenant charge calculation, the pro-rata share for the demised premises is 51 percent (1,900 / 3,700
= 51). On a semi-annual basis, the Landlord will read the on-demand meter and make any adjustment
based or actual electrical usage for the previous six month period. This monthly electrical charge
and semi-annual electrical adjustment shall be considered additional rent under the terms of this
lease. The Landlord shall have the option, but not the obligation to install a separate meter for
each space (Store 2 and Store 3) in the future. If separate meters are eventually installed, this
clause shall be void and the Tenant will be responsible for opening a segregated electricity
account under the Tenant’s name and shall be responsible for all electricity charges and deposits
associated with this account.

2.) Water and Sewer Charge: Water and sewer service for the demised premises, as of the date of the
lease, is on a common meter with the adjacent Store No. 2. The Landlord will furnish the Tenant
with a quarterly bill for water and sewer charges based on a pro-rata share of the total monthly
charge. For purposes of this water and sewer tenant charge calculation, the pro-rata share for the
demised premises is 51 percent (1,900 / 3,700 = .51). This quarterly water and sewer charge shall
be considered additional rent under the terms of this lease. The Landlord shall have the option,
but not the obligation to install a separate water meter for each space (Store 2 and Store 3) in
the future. If separate meters are eventually installed, this clause shall be void and the Tenant
will be responsible for opening a segregated water and sewer account under the Tenant’s name and
shall be responsible for all water and sewer charges and deposits associated with this account.

3.) Rent Abatement Period: During only the first and second month of the first year of this lease,
no rent will be due. All other terms and conditions of said lease will remain the same.

4.) Option Period: Provided the Tenant is current in rent and is not otherwise at that time in
default, Tenant shall have the option to renew this lease for an additional term of two years (2)
upon expiration of the initial lease term, upon the following terms and conditions:

 

 

Addendum (continued)

All of the terms, covenants and conditions of this Lease will apply during the option period,
except for the rent which shall be as follows:

Year 1 of Option Period: $4,388.00 per month, plus sales tax commencing on August 1, 2005 for
the first option year (August 1, 2005 to July 31, 2006);

Year 2 of Option Period: $4,541.00 per month, plus sales tax commencing on August 1, 2006 for
the first option year (August 1, 2006 to July 31, 2007);

5) Notice in writing shall be given at least one hundred twenty (120) days in advance of the
expiration of the term of this lease by the Tenant to Landlord of Tenant’s exercise of this option.

6) Security Deposit: If the Tenant is current in all rental payments and not in default under the
terms of the lease at the end of the 18th month of the initial lease term, then Landlord shall
refund $7,916.00 of the original security deposit to the Tenant. The refund shall be made in the
form of a credit toward the Tenant’s rent payment for the 19th and 20th month of the lease. After
the refund, the Tenant shall have a total sum deposited with the Landlord, as security deposit, of
$15,832.00 All other terms and conditions pertaining to “Deposit” under Paragraph No. 3 of the
lease shall remain in full force and effect.

7) A Delay in granting possession: If LANDLORD is unable to give possession of the Premises on the
Commencement Date by reason of LANDLORD’s Work not being completed or for any other reason, an
abatement of the rent to be paid hereunder shall be allowed to TENANT under such circumstance until
LANDLORD gives possession of the Premises to TENANT; but nothing herein shall operate to extend the
term of this Lease, and said abatement in rent shall be the full extent of LANDLORD’s liability to
TENANT for any loss or damage to TENANT on account of said delay in obtaining possession of the
Premises. If LANDLORD is unable to give possession of the Premises to TENANT within one hundred
twenty (120) days after the Commencement Date, the TENANT shall have the right to cancel this Lease
upon written notice thereof delivered to LANDLORD within ten (10) days after the lapse of said 120
day period. Upon such cancellation, LANDLORD and TENANT shall each be released and discharged from
all liability under this Lease and any security deposit given by TENANT shall be returned.exv10w19

 

Exhibit 10.19

First Amendment to Services Agreement

     This First Amendment (the “First Amendment”) to Services Agreement (the “Agreement”) is
entered into this 14th day of March, 2006 by and between Gulfstream Air Charter, Inc., a
Florida corporation with a principal place of business at 3201 Griffin Road, 4th Floor,
Dania Beach, FL 33312 (the “Cuban Air Charter”), and Gulfstream International Airlines, Inc., a
Florida corporation with its principal place of business at 3201 Griffin Road, 4th Floor, Dania
Beach, FL 33312 (“Gulfstream”). Except as otherwise set forth herein capitalized terms used herein
shall have the meanings set forth in the Agreement.

     WHEREAS, on August 8, 2003 the parties entered into the Agreement in connection with a prior
restructuring.

     WHEREAS, the parties desire to make certain amendments and modifications to the Agreement as
set forth herein.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree that the Agreement will be amended as follows:

     A. Spin Off. Simultaneously with the execution and delivery of this First Amendment,
the Cuban Air Charter shall take all necessary actions, including obtaining necessary thirty party
or governmental approvals, to transfer and assign, all right, title and interest in and to all
Cuban and U.S. licenses to operate in Cuba (the TSP/CSP licenses), Department of Transportation
Bond with Acstar, all contracts with Cuba, its legal name, trademark and associated intellectual
property and goodwill (collectively, the “Assets”), to a newly formed entity (“NEWCO) which shall
be wholly owned by Thomas L. Cooper (“Cooper”) or his designee. The transfer and assignment of the
Assets to NEWCO shall become effective on the date that the last third party or governmental
approval is obtained to transfer the Assets to NEWCO (the “Effective Date”).

     On the Effective Date, the Cuban Air Charter shall take all necessary corporate actions to
change its legal name to Sunrise Airways, Inc. (“Sunrise Airways”), and NEWCO shall conduct
business under the name “Gulfstream Air Charter”. Following the Effective Date, all references in
the Agreement, as amended, to the Cuban Air Charter shall refer to NEWCO d/b/a Gulfstream Air
Charter.

     Promptly after the Effective Date, Cooper shall sell, convey, assign, transfer and deliver to
Gulfstream all of the issued and outstanding common stock of Sunrise Airways (the “Shares”), such
Shares to be delivered to Gulfstream duly endorsed in blank or with a stock power duly endorsed in
blank, and Gulfstream shall pay to Cooper an aggregate purchase price of $10.00 for the Shares.

     After the Effective Date, NEWCO shall not sell the Assets to any third party except to
Gulfstream Acquisition Group Inc. (or its designee) for $10.00.

1

 

     The parties hereto agree to execute and deliver such further documents and instruments of
transfer to effect the transfer and assignment of the Assets, and the sale of the Shares
contemplated hereby.

     B. Section 1: Services and Rights: Section 1 of the Agreement is amended by adding
the following new paragraph (j):

“The parties shall continue to conduct business under the Agreement in the ordinary
course and in accordance with past practices.”

     C. Section 2: Term: Section 2 of the Agreement shall be deleted in its entirety and
replaced with the following:

“The Agreement shall continue in effect during the lifetime of Cooper, provided,
however, that if Cooper becomes incapacitated such that he is unable or unwilling to
manage the Cuban Air Charter, then in such event, the Agreement shall continue in
effect until March ___, 2011 and all rights of Cooper Trading Corp. (or its
designee) to payments hereunder shall be passed on its or his heirs and assigns. In
the event that Cooper becomes incapacitated or is for any reason inactive in the
business of the Cuban Air Charter after March ___, 2011, then all rights to Cooper
Trading Corp.’s (o r its designee’s) payments hereunder shall be passed on to
Gulfstream Acquisition Corp. or its assigns and the stock of the Cuban Air Charter
shall be sold to Gulfstream Acquisition Corp. or its assigns for $10.00.”

     D. Section 3: Payment: Section 3 of the Agreement shall be amended by deleting
subparagraph (a) and replacing it with the following:

“In consideration of the Services that Gulfstream provides under the Agreement, the
Cuban Air Charter shall transfer, on a weekly basis in arrears, one hundred percent
(100%) of its weekly Cash Flow to Gulfstream, except that the parties shall ensure
that sufficient cash shall be held at Cuban Air Charter to pay any and all invoices
which are due and owing to Celimar (Cuban corporation) from time to time.”

Prior to the last day of each calendar month, Gulfstream shall pay to Cooper Trading
Corporation or its assigns, one half (i.e. 50%) of the Profit Sharing Payment due on
account of the first preceding calendar month and one half (i.e. 50%) of the Profit
Sharing Payment due on account of second preceding calendar month. The term Profit
Sharing Payment shall mean a sum equal to twenty five percent (25%) of the Profits
earned by Gulfstream on account of the activities of the Cuban Air Charter for each
calendar month (the “Measurement Period”). The term “Profits” shall mean, for each
Measurement Period, the excess of (i) Cuban Air Charter’s earned revenue over (ii)
Gulfstream’s Cuba Operating Expenses incurred during the Measurement Period.”

     E. Section 3: Payment: Subparagraph (e) of Section 3 shall be deleted in its
entirety.

2

 

     F. Section 4. Service Personnel. Subparagraph (a) of Section 4 of the Agreement is
amended by deleting the last full sentence.

     G. Section 7. Hiring. Section 7 of the Agreement is amended by deleting Section 7 in
its entirety.

     H. Section 8. Termination. Section 8 of the Agreement is amended by deleting Section
8 in its entirety.

     I. Section 12: Miscellaneous: Section 12 of the Agreement shall be amended by adding the
following subsections (h), (i), (j),(k ) and (l), as follows:

“(h) Aircraft Availability and Scheduling: At least 70 days prior to Gulfstream’s
monthly flight schedule effective date (or less by mutual agreement), the Cuban Air
Charter shall request from Gulfstream what scheduled flights it desires to have
operated for the schedule period. Gulfstream shall have the exclusive right to
operate such flights so long as the equipment requested is similar to those operated
by Gulfstream. Should Gulfstream decline to provide equipment for the flights
(Gulfstream agrees to use its best reasonable efforts to do so), the Cuban Air
Charter shall be entitled to contract for aircraft from alternative sources. These
Scheduled Flights shall be priced according to the formulas in Subparagraph (i) of
this Section.”

In addition to scheduled flights, the Cuban Air Charter may from time to time
request supplemental flights. Gulfstream shall respond to the Cuban Air Charter’s
request within three (3) business days as to whether or not it can provide equipment
to do so. Gulfstream will use its best reasonable efforts to provide the equipment.
If Gulfstream declines to operate the supplemental flights, then the Cuban Air
Charter may secure aircraft from alternate sources. The supplemental flights shall
be charged to the Cuban Air Charter according Subparagraph (i) of this Section
excluding ownership expense.

“(i) Scheduled Flight Pricing: Charter flights for each month will be priced on a
formula of total direct costs to Gulfstream (Flight Crew Cost + Fuel + Maintenance +
Aircraft Ownership). The direct cost to be computed quarterly with adjusted cost
effective 30 days after quarter.

Flight Crew Costs are comprised of (trailing twelve months actual payroll, fringe
and training expenses) divided by block hours for each aircraft type times the prior
months scheduled or actual block hours, whichever is greater. Instructor payroll
shall be allocated across all aircraft hours regardless of equipment type.

Fuel Costs will be charged at a rate of 152 gallons per actual flight hour for the
Beech 1900 and 190 gallons per flight hour for the EMB-120 (and updated from time to
time if average estimated burn rates for Gulfstream change). Estimated fuel cost
between MIA and HAV, plus applicable intoplane charges and other fees, will be
applied to the gallons consumed.

3

 

Maintenance Costs will be comprised of rates per flight hour for Direct Labor,
Materials, Engines and Outside Services multiplied by the actual flight hours
operated in a given month.”

Direct Labor rates will be the trailing twelve month total payroll for Gulfstream’s
mechanics, inspectors, supervisors and cleaners, plus applicable fringe rates,
divided by total flight hours operated. Unless labor can be specifically attributed
to certain aircraft types, both aircraft shall have the same labor rate per hour.

Direct Materials shall be a total trailing twelve months cost for expendable parts,
supplies, scrappage, etc. Materials that can be attributed to a specific aircraft
type shall be applied to that aircraft type, otherwise both aircraft shall use a
common rate.

Outside Services includes a trailing twelve month average for contracted services
including rotable component repairs, parts and equipment testing, etc.

Engine Expenses will be charged on an hourly basis based upon currently effective
hourly rates for the Standard Aero fleet management plan and estimated hourly rates
for the EMB-120, times actual hours flown in the prior month.

Aircraft Ownership Expense will be charged according to the number of scheduled
block hours in a particular month, assuming a segment block time of 1:35. The
ownership cost per hour shall be comprised of current aircraft lease expense,
depreciation, interest and hull insurance divided by each fleet’s respective average
daily block utilization during the previous twelve months.

Other Direct Expenses shall be charged to the Cuban Air Charter for those costs
directly attributable to the operation. These would include such items as station
personnel (only those hours worked to support the Cuban Air Charter, sales staff,
passenger liability insurance, office rental, travel and entertainment, advertising,
legal fees, landing fees, fines and dedicated support personnel. Dedicated support
personnel currently include Gulfstream accounting services (25% of J. Henry) and
executive support.

(j) Sunrise Airways Support Flying: Chieftain will be billed at $400.00
flight hour. Aztec will be billed at $300.00 flight hour. These amounts will be
adjusted quarterly based on actual experience.

     J. IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT GULFSTREAM AIR CHARTER, INC., NEWCO AND COOPER
MAKE NO WARRANTIES OR REPRESENTATIONS REGARDING THE AIR CHARTER’S PROFITABILITY OR VIABILITY, AND
IT IS EXPRESSLY ACKNOWLEDGED THAT MANY FACTORS, INCLUDING, AMONG OTHER THINGS, POLITICAL
UNCERTAINTY, CAN EFFECT THE PROFITABILITY AND CONTINUED VIABILITY OF THE AIR CHARTER. IT IS ALSO
UNDERSTOOD AND ACKNOWLEDGED THAT THE APPLICABLE LICENSES TO OPERATE FLIGHTS TO AND FROM CUBA COULD
BE REVOKED AT ANY TIME BY ACTION OF THE APPROPRIATE GOVERNMENTAL AUTHORITY.”

4

 

     K. Except as expressly set forth herein, all of the terms and provisions of the Agreement
shall remain in full force and effect.

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed by
their duly authorized officers as of date first written above.

GULFSTREAM AIR CHARTER, INC.

	 	 	 	 	 
	/s/ Thomas L. Cooper	 	 
	 	 	 
	Name:

	 	Thomas L. Cooper	 	 
	Title:

	 	Vice President	 	 

GULFSTREAM INTERNATIONAL AIRLINES, INC.

	 	 	 	 	 
	/s/ David F. Hackett	 	 
	 	 	 
	Name:

	 	David F. Hackett	 	 
	Title:

	 	President	 	 

5

 

SERVICES AGREEMENT

     This SERVICES AGREEMENT (the “Agreement”) dated as of August 8, 2003 is by and between
Gulfstream Air Charter, Inc., a Florida corporation with its principal place of business at 5302
N.W. 21st Terrace, Fort Lauderdale, Florida 33309 (“Cuban Air Charter”), and Gulfstream
International Airlines, Inc., a Florida corporation with its principal place of business at 1815
Griffin Road, Suite 400, Dania Beach, Florida 33004 (“Gulfstream”).

W I T N E S S E T H :

     WHEREAS, Cuban Air Charter is licensed by the Office of Foreign Assets Control (“OFAC”) of the
U.S. Department of the Treasury as a Carrier and Travel Service Provider and is thereby authorized
to arrange charter flights and sell charter air transportation between designated U.S. airports and
Cuban airports;

     WHEREAS, Cuban Air Charter plans to enter and develop the Cuba charter and travel market and
to arrange charter flights and sell charter air transportation to Cuba (the “Cuban Operation”) in
accordance with the licenses and the Cuban Assets Control Regulations;

     WHEREAS, because it is a relatively new entrant into the Cuban charter and travel market,
Cuban Air Charter desires adequate market protections during its commencement and development of
the Cuban Operation, and needs to obtain administrative and other services and rights to
administer, and assist in the operation of, the Cuban Operation;

     WHEREAS, Gulfstream has personnel who can assist with the back office administration and
general operation of the Cuban Operation and has areas of expertise in security and other services
that are necessary to comply with various governmental requirements;

     WHEREAS, Cuban Air Charter desires to obtain, and Gulfstream is willing to provide Cuban Air
Charter, certain administrative, airport, and security related services and rights as further
described herein in connection with the Cuban Operation; and Gulfstream agrees not to compete in
the Cuban charter and travel market;

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows:

     Section 1:
Services and Rights. Cuban Air Charter is responsible for conducting the Cuban
Operation in accordance with all applicable Federal and State laws and regulations. Subject to
Cuban Air Charter’s supervision and approval, Gulfstream makes the following covenants, and shall
provide the following services and rights (such covenants, services, and rights are collectively
referred to herein as the “Services”) to Cuban Air Charter in connection with the Cuban Operation:

	 	(a)	 	Gulfstream shall provide personnel to assist Cuban Air Charter with the
day-to-day office activities and shall take such actions, all as Cuban Air Charter
deems necessary and appropriate to carry out the Cuban Operation.

 

 

	 	(b)	 	Gulfstream shall provide personnel to assist Cuban Air Charter with checking-in
licensed passengers and verifying and processing passengers’ travel documents
(passports and visas) and OFAC required documents, all as Cuban Air Charter deems
necessary and appropriate to carry out the Cuban Operation.
	 
	 	(c)	 	Gulfstream shall provide the personnel and services to assist Cuban Air Charter
with its general operation of the Cuban Operation, including without limitation
in-flight services, baggage handling, and airport-related services, all as Cuban Air
Charter deems necessary and appropriate to carry out the Cuban Operation.
	 
	 	(d)	 	Gulfstream shall assist Cuban Air Charter in negotiating the purchase and
leasing of equipment necessary for the Cuban Operation as Cuban Air Charter deems
necessary and appropriate to carry out the Cuban Operation. Gulfstream shall have
neither the right nor power to bind Cuban Air Charter to any commitment, contract, or
agreement.
	 
	 	(e)	 	Gulfstream shall assist Cuban Air Charter in purchasing supplies and arranging
for the printing of various forms (including the Operator-Participant Contract and/or
OFAC affidavits or forms) necessary for the Cuban Operation, all as Cuban Air Charter
deems necessary and appropriate to carry out the Cuban Operation.
	 
	 	(f)	 	Gulfstream shall assist Cuban Air Charter in evaluating and obtaining insurance
for the Cuban Operation and for Cuban Air Charter’s properties, as Cuban Air Charter
deems necessary and appropriate to carry out the Cuban Operation.
	 
	 	(g)	 	Gulfstream shall provide security-related services for the U.S.-Cuba charter
flights that Cuban Air Charters arranges, including but not limited to baggage and
cargo screening, transmission of passenger data through the Advance Passenger
Information System (“APIS”) or other authorized system, and verification of passenger
and, if applicable cargo, manifest data, all as Cuban Air Charter deems necessary and
appropriate to carry out the Cuban Operation.
	 
	 	(h)	 	Gulfstream hereby irrevocably grants to Cuban Air Charter a license to use the
trade name “Gulfstream”, either alone or in conjunction with other names, to the full
extent of any rights or interests that Gulfstream has therein (and any trademarks and
goodwill associated therewith), in connection with the Cuban Operation. Whatever
rights and interests that Gulfstream has to use such trade name and trademarks shall
inure to Cuban Air Charter, which shall forever have all rights to use such trade name
and trademarks in the Cuban Operation, and Gulfstream shall not prohibit, restrict,
seek to enjoin, or seek compensation for Cuban Air Charter’s use of such trade name and
trademarks. The provisions of this paragraph (h) of Section 1 shall survive the
termination of this Agreement.
	 
	 	(i)	 	Gulfstream agrees that it shall not compete with Cuban Air Charter’s Cuban
Operation for the term of this Agreement. During the entire term of this Agreement,
Gulfstream shall not contract with air carriers for the operation of

2

 

	 	 	 	charter flights between designated U.S. and Cuban airports and shall not sell air
tickets or provide visa and passport processing services to passengers who are
licensed to travel to and from Cuba.

     Section 2:
Term. This Agreement shall commence on September 1, 2003, and shall continue until
such time as Cumulative Profits (as defined below) reach $1,500,000 (or $1,000,000 in the event of
the applicability of the Incentive Reduction, as defined in that Third Restructuring Agreement
dated as of August 8, 2003 by and among Gulfstream International Airlines, Inc., Raytheon Aircraft
Credit Corporation (“RACC”), and Thomas L. Cooper (the “Restructuring Agreement”)), unless either
party terminates this Agreement in accordance with the provisions of Section 8 hereof.

     Section 3: Payment.

     (a) In consideration of the Services that Gulfstream provides under this Agreement, Cuban Air
Charter shall pay 100% of its monthly Cash Flow (as defined below) to Gulfstream until such time as
Cumulative Profits reach $1,500,000 (or $1,000,000 in the event of the applicability of the
Incentive Reduction, as defined in the Restructuring Agreement), and thereafter Cuban Air Charter
shall have no further payment obligations under this Agreement. Cuban Air Charter shall make
payments monthly in arrears not later than the 25th day of the month following the month with
respect to which Cash Flow is payable hereunder.

     (b) Concurrent with each monthly payment to Gulfstream, Cuban Air Charter shall provide a
certification from its Chief Financial Officer to Gulfstream (and under the Restructuring Agreement
to RACC) certifying in reasonable detail the amount of Cuban Air Charter’s Cash Flow for the
previous month. In addition, within ninety (90) days after the end of each of Cuban Air Charter’s
fiscal years, it shall provide a certification by its Chief Financial Officer of Cuban Air
Charter’s annual Cash Flow to Gulfstream (and under the Restructuring Agreement to RACC). Within
25 days following the end of each month, Gulfstream shall furnish Cuban Air Charter with a
certification from Gulfstream’s Chief Financial Officer certifying in reasonable detail the amount
of Gulfstream’s Cuba Operating Expenses (as defined below) for such month. In addition, within
ninety (90) days after the end of each fiscal year of Cuban Air Charter, Gulfstream shall provide
Cuban Air Charter with a certification by its Chief Financial Officer of the Cuba Operating
Expenses for such year.

     (c) For purposes of this Agreement, the “Cash Flow” for any period shall mean the excess of
(i) Cuban Air Charter’s gross cash receipts during any period from agency and direct passenger
ticket sales, excess baggage charges, and visa and passport processing fees in connection with its
Cuban Operation (“Cuban Activities”), over (ii) the sum of (x) the cash expenditures made by Cuban
Air Charter during such period for the operating expenses on account of direct variable costs that
it incurs with respect to its operation of the Cuban Activities (excluding payments made to
Gulfstream under this Agreement), and (y) Cuban Air Charter’s Federal, State, local, and foreign
taxes that have accrued or become payable during such period.

     (d) For purposes of this Agreement, “Cuba Operating Expenses” shall mean, with respect to any
period, the cash expenditures made by Gulfstream during such period for the

3

 

operating expenses on account of direct variable costs that it incurs with respect to its
operation, on behalf of Cuban Air Charter, of the Cuban Activities.

     (e) For purposes of this Agreement, “Cumulative Profits” at any given date (a “Measuring
Date”) shall mean the excess of (i) Cuban Air Charter’s cumulative payments to Gulfstream under
subparagraph (a) of this Section for all periods through and including such Measuring Date plus the
Interim Profits, over (ii) Gulfstream’s cumulative Cuba Operating Expenses for all periods from the
Effective Date (as defined below) through and including such Measuring Date. It is anticipated
that Cuban Air Charter will not commence the Cuban Operation until on or about September 1, 2003
(the “Effective Date”). For purposes of this Agreement, “Interim Profits” shall mean the excess of
the revenues generated by Gulfstream from the Cuban Activities during the period between beginning
on the date of this Agreement and through the Effective Date, over the Cuba Operating Expenses for
such period.

     Section 4: Service Personnel.

     (a) Cuban Air Charter shall identify the number of Gulfstream employees that it may need each
month to assist with the Cuban Operation. This number may fluctuate each month depending upon a
variety of factors, including without limitation the number of charter flights that Cuban Air
Charter will arrange to Cuba. Cuban Air Charter also shall have a right to determine whether the
Gulfstream employee has the qualifications and skills necessary to provide the Services under this
Agreement (said employees collectively referred to herein as “Service Personnel”). Cuban Air
Charter shall review the resume or similar statement specifying the background, education, and
experience of any Service Personnel. If Cuban Air Charter determines that any Service Personnel is
not qualified to provide the services specified in this Agreement, Cuban Air Charter shall have the
right to require that another Gulfstream employee be assigned to assist Cuban Air Charter, subject
to Cuban Air Charter’s prior review and approval. If Gulfstream fails to provide qualified Service
Personnel satisfactory to Cuban Air Charter, or fails to replace any Service Personnel that Cuban
Air Charter rejects, within fourteen (14) days of Cuban Air Charters’ request for Service
Personnel, Cuban Air Charter may terminate this Agreement for cause pursuant to Section 9 of this
Agreement.

     (b) Service Personnel shall comply with all applicable laws and regulations implemented by
OFAC, the U.S. Department of Transportation, the Federal Aviation Administration, the
Transportation Security Administration, the Bureau of Customs & Border Protection, and any other
Federal or State agencies. If Service Personnel or Gulfstream fails to comply with any Federal or
State laws and regulations, Gulfstream shall indemnify and hold Cuban Air Charter harmless from any
and all taxes, damages, fines, or other costs (including legal fees and expenses) incurred by Cuban
Air Charter as a result of Gulfstream’s failure.

     Section 5: Expenses. Gulfstream shall be responsible for paying any and all benefits earned by
Service Personnel during the term of this Agreement. Gulfstream also is responsible for paying any
and all compensation under and expenses associated with general liability and worker’s compensation
insurance or similar insurance covering Service Personnel during the term of this Agreement.

4

 

     Section 6: Independent Contractor. At all times, Gulfstream shall be deemed an independent
contractor and shall not be deemed or considered an employee, agent, partner, or joint venturer of
Cuban Air Charter. All Service Personnel shall be deemed employees of Gulfstream and shall be
subject only to the direction and control of Gulfstream. Gulfstream shall pay all appropriate FICA
and other contributions and withholding taxes required under the Internal Revenue Code. Gulfstream
shall indemnify and hold Cuban Air Charter harmless from any and all taxes, damages, fines, or
other costs (including legal fees and expenses) incurred by Cuban Air Charter as a result of
Gulfstream’s failure to make any such payments in a timely manner.

     Section 7: Hiring. During the term of this Agreement, Cuban Air Charter shall not hire, as
employees of Cuban Air Charter, any Service Personnel without the prior written consent of
Gulfstream. For a period of one (1) year after this Agreement terminates, Cuban Air Charter shall
not hire or retain the services of any Service Personnel unless Cuban Air Charter obtains written
consent from Gulfstream.

     Section 8: Termination.

     (a) Either party may terminate this Agreement for cause immediately upon providing written
notice of the termination to the other party. Such termination shall not waive any remedies to
which the terminating party may be entitled either under law, or in equity, or under this
Agreement.

     (b) The term “cause” shall include any one of the following situations:

	 	i)	 	Gulfstream cannot provide or has not provided qualified Service
Personnel to Cuban Air Charter within fourteen (14) days of Cuban Air Charter’s
request for such personnel;
	 
	 	ii)	 	Gulfstream cannot provide or has not provided any Services for
more than thirty (30) consecutive days;
	 
	 	iii)	 	Either party liquidates or dissolves, files a voluntary
petition in bankruptcy, assigns all or substantially all of its assets to or
for the benefit of creditors, appoints a receiver over substantially all of its
assets, or is adjudicated as bankrupt as a result of an involuntary bankruptcy
proceeding against such party.
	 
	 	iv)	 	Gulfstream or any Service Personnel are negligent in the
performance of the Services set forth in this Agreement;
	 
	 	v)	 	Either party fails to comply with the terms and conditions of
this Agreement, which breach continues unremedied for thirty (30) days after
the nonbreaching party provides written notice of the breach to the breaching
party;
	 
	 	vi)	 	Gulfstream or any Service Personnel fails to comply with the
laws and regulations implemented by OFAC, the U.S. Department of

5

 

	 	 	 	Transportation, the Federal Aviation Administration, the Transportation
Security Administration, the Bureau of Customs & Border Protection, or any
other Federal or State agencies.

     Section 9 : Nondisclosure. Gulfstream and Service Personnel will have access to the records,
customer files, customer data, and other confidential business information of Cuban Air Charter.
All files, records, documents, equipment, and similar items relating to the Cuban Operation of
Cuban Air Charter shall remain the exclusive property of Cuban Air Charter and shall not be removed
from the premises of Cuban Air Charter without Cuban Air Charter’s prior written consent. In
addition, neither Gulfstream nor Service Personnel shall disclose any confidential business
information, either directly or indirectly, during the term of this Agreement or any time
thereafter without Cuban Air Charter’s prior written consent. Any files, records, documents,
equipment, and similar items that are removed from Cuban Air Charter’s premises must be returned to
Cuban Air Charter.

     Section 10: Ownership of Records. All records and books relating in any manner whatsoever to the
Cuban Operations, whether prepared by Cuban Air Charter, Gulfstream, or Service Personnel, shall be
the exclusive property of Cuban Air Charter.

     Section 11: Notices. Unless otherwise specifically provided herein, all notices, consents,
directions, approvals, instructions, requests and other communications required or permitted by the
terms hereof, shall be in writing and shall be sent by overnight delivery to the addresses
specified below:

	 	 	 	 	 
	 

	 	If to Cuban Air Charter:
	 	Mr. Thomas L. Cooper

Gulfstream Air Charter, Inc.

5302 N.W. 21st Terrace

Fort Lauderdale, FL 33309

	 

	 	If to Gulfstream:	 	 
	 

	 	 	 	Gulfstream International Airlines, Inc.

1815 Griffin Road

Dania Beach, FL 33004

	 
	 

	 	 	 	Attention: General Counsel

Such notice shall be effective upon receipt by the recipient, which shall be deemed to take place
upon the confirmed receipt by overnight delivery.

     Section 12: Miscellaneous.

     (a) Amendments. No provision of this Agreement may be amended, changed, waived,
discharged, modified or terminated except by a written instrument in writing signed by Cuban Air
charter and Gulfstream and designated as an amendment, supplement or waiver.

     (b) Assignment. Neither party may assign its rights or obligations hereunder without
the prior written consent of the other party.

6

 

     (c) Severability. If any provision of this Agreement shall be held invalid, illegal
or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining
provisions of this Agreement shall not be impaired thereby; nor shall the validity, legality or
enforceability of any such defective provision be in any way affected or impaired in any other
jurisdiction.

     (d) Headings. The paragraph headings herein are for convenience only and shall not
affect the construction of this Agreement.

     (e) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida (without regard to any conflicts of law rule that might
result in the application of the laws of any other jurisdiction). This Agreement shall be deemed
to have been executed and delivered in the State of Florida.

     (f) Complete Agreement. This Agreement contains the entire agreement between Cuban
Air Charter and Gulfstream concerning the Services that Gulfstream will provide in connection with
the Cuban Operation. This Agreement supersedes any prior oral or written agreements between Cuban
Air Charter and Gulfstream concerning the subject matter hereof.

     (g) Counterparts. This Agreement will be executed in two number of counterparts, each
of which when executed shall be considered an original, and when taken together shall constitute
but one and the same instrument, and either of the parties hereto may execute this Agreement by
signing such counterpart.

[signature page to follow]

7

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
duly authorized officers as of the day and year first written above.

GULFSTREAM AIR CHARTER, INC.

	 	 	 	 	 
	/s/ Thomas L. Cooper	 	 
	 	 	 
	Name:

	 	Thomas L. Cooper	 	 
	Title:

	 	Vice President	 	 

GULFSTREAM INTERNATIONAL AIRLINES, INC.

	 	 	 	 	 
	/s/ Thomas P. Cooper	 	 
	 	 	 
	Name:

	 	Thomas P. Cooper	 	 
	Title:

	 	Vice President	 	 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]