Document:

exv10w3

 

Exhibit 10.3

OFFICE SPACE LEASE

LANDLORD

EYW HOLDINGS, INC.

TENANT

GULFSTREAM INTERNATIONAL AIRLINES, INC.

LOCATION

3201 WEST GRIFFIN ROAD

DANIA, FLORIDA 33312

 

 

LEASE AGREEMENT

     THIS INDENTURE made this 1st day of August, 2005, between, GULFSTREAM INTERNATIONAL
AIRLINES, INC. having an address of 1815 Griffin Road, Suite 400, Dania, FL 33004 (“Tenant”) and
EYW Holdings, Inc.., a Florida corporation, having an address of 1815 Griffin Road, Suite 400,
Dania, FL 33004, (“Landlord”):

W  I  T  N  E  S  S  E  T  H:

     Landlord hereby demises and lets unto Tenant, and Tenant hereby hires and takes from Landlord
the premises outlined on the plan attached hereto as EXHIBIT “A” being the entire FOURTH FLOOR and
approximately 2700 square feet of the SECOND FLOOR, excluding common areas (the “Premises”) of the
Airport West Office Building at 4733 Southwest 32nd Avenue (the “Building”), having a postal
address of 3201 Griffin Road, Dania, Florida, for a term of Twenty (20) years, to commence on the
1st day of December, 2005 (the “Rent Commencement Date”), and shall terminate on the
31st day of December, 2025, unless sooner terminated as hereinafter provided, or extended pursuant
to Tenant’s renewal option, if any, which may be set forth herein. Unless such an option to extend
shall be specifically set forth herein, no such right shall exist or be implied. Notwithstanding
the foregoing, Tenant shall be granted the right of access (but not occupancy) to the Premises on
or after November 15th, 2005 for the sole purpose of installing telephone, computer and other
office operating systems, and the storage of office furniture and furnishing. During the Access
Period, Tenant shall have no rights to operate its business or allow any employees or other
personnel to occupy the Premises other than for limited purposes set forth in the preceding
sentence. The Premises consists of approximately 6,900+/- square feet of gross leasable area
(“GLA”). Tenant shall pay the Security Deposit set forth herein, upon the execution of this lease.
Tenant shall pay the rent herein provided without deduction, diminution or setoff except as herein
provided. Tenant agrees to pay to Landlord any sale, use or excise tax imposed or levied by any
governmental agency having jurisdiction thereof. The land on which the Building has been erected,
as more particularly described in Exhibit “B,” attached hereto and made a part hereof, is
hereinafter referred to as the “Land.” The Building, Land and all improvements thereon constitute
the entire property (“Entire Property”).

     The Premises are leased upon the following terms and conditions:

     1. RENT

          A. For the period commencing December 1, 2005 through November 31, 2006, the Base Rent for all
purposes of the Lease shall be EIGHTY NINE THOUSAND SEVEN HUNDRED AND NO/XX ($89,700.00) DOLLARS,
plus all Additional Rent, additional charges and applicable sales tax payable in monthly
installments commencing December 1, 2005 and thereafter due on the 1st day of each month in the
amount of SEVEN THOUSAND FOUR HUNDRED SEVENTY FIVE AND NO/XX ($7,475.00) DOLLARS plus all
Additional Rent, additional charges and applicable sales tax.

          B. Commencing on the first anniversary of the Rent Commencement Date, and on each anniversary
date thereafter (the “Rental Adjustment Dates”) during the first five (5)

 

 

years of this Lease, the Base Rent shall be increased by three percent calculated by
multiplying the Base Rent for the prior Lease Year by 103% (1.03) (“Adjustment Rate”), which shall
be the Base Rent for that Lease Year. Monthly payments of Base Rent for such Lease Year shall be
calculated by dividing the new (adjusted Base Rent) by twelve equal payments. Such amounts shall be
due and payable on the first day of each month during such Lease Year commencing December 1 through
and including November 31 of such Lease Year. The Adjustment Rate shall be renegotiated at the end
of the first five (5) year period of the lease term.

          C. Late Charges and Interest. Any unpaid rent shall bear interest at the eighteen
percent (18%) per annum from the date due until paid. In addition thereto, Tenant shall pay a late
charge equal to five percent (5%) of any monthly payment not paid when due, as an administrative
charge to Landlord to cover the costs of such late payment.

     2. TENANT’S SHARE OF OPERATING EXPENSES

          A. Commencing on the Rent Commencement Date, Tenant agrees to pay Landlord, as additional
rent, its Pro Rata Share (as hereinafter defined) of Common Area Expenses as said term is hereafter
defined, for the Entire Property, together with any applicable sales tax. Such amounts shall be
Additional Rent. For purposes of this Lease only, it is hereby agreed that the Common Area Expenses
(as said term is hereafter defined) for calendar year 2006, i.e., through December 31, 2006, are
deemed to be $3.40 per square foot of leasable area. Thereafter (following December 31, 2006),
Common Area Expenses shall be charged in accordance with the terms of this Section 2.

          B. Common Area Expenses. The term “Common Area Expenses” shall mean all costs of operating and
maintaining the Building, including, without limitation, items described in the subparagraphs (I)
and (II) hereinbelow:

               (I) All taxes assessments, water and sewer charges and other governmental charges levied on or
attributable to the Building and to the real property on which the Building is situated and for
which Landlord shall become liable to pay because of or in connection with the ownership, leasing
and operating of the Building, including, without limitation, (i) real property taxes or
assessments levied or assessed again the Building, (ii) assessments or charges levied or assessed
against the Building by a redevelopment agency, and (iii) any tax measured by gross rentals or
income from the lease of the Demised Premises or Building to the extent the same may be imposed in
lieu of or in addition to any taxes or assessments upon the land or Building, excluding any net
income, franchise, capital stock, estate or inheritance taxes by the State or Federal government or
their agencies, branches or departments; provided that if at any time during the term of this Lease
any governmental entity levies, assesses or imposes on Landlord any (1) general or specific, ad
valorem or specific, excise, capital levy or other tax, assessment, levy or charge directly on the
rent received under this Lease or on the rent received under any other leases of space in the
Building, or (2) any license fee, excise or franchise tax, assessment, levy or charge measured by
or based, in whole or in part, upon such rent, or (3) any transfer transaction, or similar tax,
assessment, levy or charge based directly or indirectly upon the transaction represented by this
Lease or such other leases, or (4) any occupancy, use, per capital or other tax, assessment, levy
or charge based directly or indirectly upon the ownership, use or occupancy of the Demised Premises
or other premises

 

 

within the Building, then any such tax assessments, levels and charges shall be deemed to be
included in the term Operating Costs.

               (ii) Operating Costs incurred by Landlord shall include all costs and expenses paid or
incurred by Landlord in connection with the ownership, operating, management or maintenance of the
Building, including, without limitation, the following: costs of utilities, supplies, insurance of
all kinds which Landlord in good faith pays (including, without limitation, public liability,
property damage, earthquake, and fire and extended coverage required by Landlord or its lenders for
the Building, services of independent contractors, compensation (including employment taxes with
the operation, maintenance, repair or overhaul of the Building, including, without limitation,
engineers, janitors, painters, floor waxers, window washers, security and parking personnel and
gardeners (but excluding persons performing services not uniformly available to or performed for
substantially all Building Tenants), reasonable and customary costs for a management office for the
Building, including the personnel therein, whether managed by Landlord or an independent contractor
(including, without limitation, an amount equal to the fair market value of any on-site manager’s
office except to the extent that such office is used to market and lease space in the Building),
rental expenses for (or a reasonable depreciation allowance on) personal property used in the
maintenance, operating or repair of the Building, costs, expenditures or charges (whether
capitalized or not) required by any governmental or quasi-governmental authority, amortization of
capital expenses (including financing costs) (I) required by a governmental entity for energy
conservation or life safety purposes, or (ii) made by Landlord to reduce Operating Costs, and any
other costs or expenses incurred by Landlord associated with the Building or tenants and not
otherwise reimbursed by tenants of the Building.

          C. The Tenant’s Pro Rata Share as used herein is hereby defined as forty one (41%) percent.

          D. Notwithstanding anything contained in this Paragraph to the contrary, Tenant shall provide,
at its sole cost and expense, the janitorial services and cleaning of the Premises and shall pay
for its own electric in accordance with Paragraph 4 below.

     3. USE

          Tenant shall use and occupy the Premises only for marketing, airline pilot recruiting and
training, and general office use, and other directly related business purposes complying with all
applicable governmental ordinances, rules or statutes, building or zoning codes applicable to the
subject Property, and for no other purpose, without the express written consent of the Landlord,
which may be granted or withheld in the Landlord’s sole discretion. In the event the Tenant uses
the Premises for purposes not expressly permitted herein, the Landlord may terminate the Lease or,
without notice to Tenant, restrain said improper use by injunction. Tenant further agrees not to
leave the Premises vacant or unoccupied during the term.

     4. UTILITIES

          Tenant shall be solely liable for electricity expense relating to the Premises. Landlord shall
use its best reasonable discretion in determining Tenant’s usage of electricity and

 

 

its proportionate share, provided, however, that Landlord’s determination of the Tenant’s
proportionate share of electric usage in the premises shall be final and determinative. The Tenant
acknowledges that the initial charges for normal electric usage shall be calculated at the rate of
$1.60 per square foot per annum. In calculating Tenant’s proportionate share of electric usage,
Landlord shall take into consideration customary costs and expenses for similar uses, types of
equipment and shall consider the hours of operation of Tenant and other Tenant’s in the building as
estimated by FPL. Landlord may, at its sole option, elect to install a submeter for the premises,
the separate floors of the building, or any other portion thereof to assist in making such
determinations. Any charge for electricity incurred hereunder shall be deemed Additional Rent.
Nothing contained herein shall be construed as a representation by Landlord that any utility
service shall continue to be available to the premises. Landlord shall not be liable to Tenant for
any interruption in utility services beyond Landlord’s control, provided that Landlord shall take
no action to interfere with, interrupt or terminate the availability of such services. Landlord
shall obtain and pay for water, sewage and garbage disposal for the entire building, including the
Premises.

          Tenant shall at its sole cost and expense without any right to offset or claim against
Landlord, and subject to all applicable building codes and ordinances and Landlord’s prior written
approval as to location and schematic design shall be authorized to have Cable TV service from any
locally authorized Cable TV Service Provider for the Building, installed to the Building and to the
Premises. Tenant shall indemnify and hold Landlord harmless from any claims, losses or damage in
connection with such installation and in no event shall such installation interfere with any other
Tenancies or rights to occupancy of other Tenants in the Building. Tenant shall be solely
responsible for restoring or replacing any damage incurred in connection with the installation of
such Cable TV services to the premises. Tenant shall be responsible for the payment of any
installation costs or fees and any fees in connection with monthly service. In the event Tenant
shall be unable to obtain Cable TV service to the building, pursuant to this Paragraph 4, Tenant
subject to the terms and conditions of Section 41 hereof relating to signage and use of the
exterior of the building, shall with Landlord’s prior written approval, which shall not be
unreasonably withheld may install a satellite TV Dish antenna not exceeding 18 inches in diameter.
Such antenna shall be installed in accordance with installation techniques reasonably approved by
Landlord, in a location designated by Landlord, and in no event shall such antenna be visible from
street level around the building or interfere in any way with the microwave telephone antennas or
other telephone equipment located on the roof of the building, or the satellite antennas of any
other tenants currently located on the roof of the building.

     5. UNUSUAL EQUIPMENT

          The Tenant will not install or maintain any electrically operated equipment or other
machinery, except office machines, office equipment, computers and similar type equipment normally
used by occupants of similar office space, without first obtaining the consent in writing of the
Landlord. Tenant, prior to its occupancy, shall submit a list of its electrical equipment, and
electrical consumption to Landlord for its approval, which shall not be unreasonably withheld.

 

 

     6. TENANT TO TAKE GOOD CARE OF PREMISES

          Tenant shall provide its own janitorial service to the Premises as set forth in Paragraph 2.D.
above. Tenant shall keep the Premises and all common areas in good, clean, safe and sanitary
condition and shall permit no waste or injury to occur to the Premises and fixtures therein, or to
any additions, alterations and improvements thereto. All damages caused by Tenant’s negligence, or
that of his agents, servants, employees or visitors, whether interior or exterior, structural or
nonstructural, foreseen or unforeseen within common areas on the Premises, shall be repaired
promptly by Tenant at its sole cost and expense so that such areas on the Premises are in at least
as good condition as they were prior to such damage (normal wear and tear excepted). In the event
that the Tenant fails to comply with the foregoing provisions, the Landlord shall have the option
to enter the Premises at any reasonable time without liability for business interruption and make
all necessary repairs at Tenant’s cost and expense, the same to be added to and be payable with the
next monthly installment of rent.

     7. COMPLIANCE WITH DIRECTIVES OF AUTHORITIES

          Tenant shall, at his own cost and expense, promptly and fully comply with all regulations
related to permitted uses. Tenant waives any claim against Landlord for any expense or damage
resulting from compliance with any of the said rules, regulations, laws or orders.

     8. ALTERATIONS AND IMPROVEMENTS, ETC.

          Except as otherwise provided for herein, Tenant shall not cut, drill into, disfigure, deface
or injure any part of the Premises; nor obstruct or permit any obstruction, alteration addition,
improvement, decoration or installation in the Premises. Notwithstanding anything contained in this
Lease to the contrary, or seemingly to the contrary, Tenant shall not commence any alterations or
improvements within the Premises or elsewhere in the Property, without first submitting to Landlord
a full set of plans and specifications for any such proposed improvements or alterations, and
obtaining approval of said plans and specifications from Landlord. In this regard, Landlord may
withhold its consent for any such improvements or alterations, in its sole and absolute discretion.
All alterations, additions, improvements, decorations or installations, including but not limited
to, partitions, railing, air-conditioning ducts or equipment (except, provided Tenant is not then
in default, movable furniture and fixtures put in at the expense of Tenant and removable without
defacing or injuring the Building or the Premises), shall become the property of Landlord at the
termination of the term. Landlord, however, reserves the option to require Tenant, upon demand in
writing, to remove all fixtures and additions, improvements, decorations or installations
(including those not removable without defacing or injuring the Premises) and to restore the
Premises to the same condition as when originally leased to Tenant, reasonable wear and tear
expected; provided, however, Landlord shall not have the right to require Tenant to remove any
fixtures, additions, improvements, decorations and/or installations which are initially installed
by and for Tenant in order to prepare the Premises for occupancy by Tenant in a manner which has
been approved by landlord. Tenant agrees to restore the Premises immediately upon the receipt of
the said demand in writing at his own cost and expense and agrees in case of his failure to do so,
that Landlord may do so and collect the cost thereof from Tenant as hereinafter provided. Landlord
and Tenant agree that any special electrical or electronic system installation or removal
requirements shall be the Tenant’s responsibility.

 

 

     9. INSPECTION, EXAMINATION AND ENTRY

          Landlord and Landlord’s agents shall have the right to enter the Premises at all reasonable
hours and upon reasonable notice, to examine the same, and workmen may enter at any time in the
event of emergency and otherwise at reasonable times, upon reasonable notice when authorized by
Landlord or Landlord’s agents to make such repairs, alterations or improvements in the Building as
Landlord may in its sole discretion deem necessary or desirable. If during the last month of the
term, Tenant shall have removed all or substantially all of Tenant’s property, Landlord may
immediately enter the Premises and prepare them, for any future Tenant. Furthermore, the Landlord
may allow such future Tenant to occupy the Premises. These acts shall have no effect upon Tenant’s
obligation under this Lease and Tenant shall be entitled to no abatement or diminution of rent as a
result thereof, except that in the event such future Tenant makes any payment for the period up
until the expiration of this Lease, Tenant shall be entitled to an abatement of rent for such
period. If Tenant shall not be personally present to open and permit entry into the Premises, when
entry thereunto shall be permissible or necessary hereunder, Landlord may forcibly enter same
without rendering Landlord liable to any claim for damages and without affecting the obligation and
covenants of this Lease. Employees of Landlord and Landlord’s agents shall be permitted to enter
the Premises by passkey at all reasonable times. Landlord may display “For Rent” signs upon the
Premises when deemed appropriate by Landlord. Landlord, upon reasonable notice, may enter the
property during the business hours to show prospective purchasers of the entire premises, or
mortgagees, and within one hundred twenty (120) days of the lease termination, may enter the
premises to show prospective Tenants the office space.

          Tenant will occupy the demised premises promptly upon commencement of the term and,
thereafter, continuously, actively and diligently conduct the permitted use in the demised
premises, in a businesslike and reputable manner.

     10. INCREASE IN INSURANCE

          Tenant will not do or permit anything to be done upon or bring or keep or permit anything to
be brought or kept into or on the Premises which shall increase the rate of fire insurance in the
Premises, on the Building of which the Premises form a part or on the property located therein. If
by reason of the failure of Tenant to comply with the terms of this Lease, or by reason of Tenant’s
use (even though permitted or contemplated by this Lease), the fire insurance rate shall at any
time be higher than it would otherwise be, Tenant shall reimburse Landlord for that part of all
fire insurance premiums charged because of such violations or occupancy by Tenant. In the event
Tenant shall fail to carry the proper insurance required under this Lease, Tenant shall indemnify
and hold Landlord harmless against any loss which would have been covered under such insurance, if
same had been obtained.

     11. NO LIABILITY

          Tenant has been given an opportunity to inspect the Premises and the Building, and has made
such investigations and inspections as it deems necessary or appropriate, and has accepted the
Premises and the Building in their “as-is” “where-is” condition without any representations or
warranties whatsoever. Tenant will not hold

 

 

Landlord liable for any defect in the Premises or in the Building, latent or patent. Landlord,
except due to willful misconduct or gross negligence, shall not be liable for any failure of water
supply, electric current, heating or air conditioning, elevator service, or any other service,
provided that Landlord shall take no action to interfere with, interrupt or terminate the
availability of such services; nor for injury, or loss of life, or damage to person or property
caused by fire or theft or by the elements or by other Tenants or persons in the Building, or
resulting from the operation of elevators, heating or air conditioning or lighting apparatus, or
from falling plaster or similar materials or from steam, gas, electricity, water, rain, or
dampness, which may leak or flow from any part of the Building, or from the pipes, appliances, or
plumbing work of the same, or from any other place for damages resulting from the acts or omissions
of Tenant, Tenant’s agents, employees, invitees or other occupants of the Building. Landlord shall
not be liable for any loss or damage that Tenant may sustain by reason of the closing or darkening
of any of the windows in the Premises through the erection of, or any addition to, a new building
or otherwise, and the same shall not constitute a constructive eviction. All goods or property or
personal effects stored or placed by the Tenant in or about the Building shall be at the sole risk
of the Tenant nor shall Landlord be liable to Tenant for any act or omission (excluding gross
negligence, or willful acts of Landlord, its principals, agents, employees or servants).

     12. DAMAGE BY FIRE OR OTHER CASUALTY

          If, through no fault or negligence of Tenant, his visitors, agents or servants, the Premises
shall be partially damaged by fire or other casualty, the damage, excluding any of Tenant’s
alterations, floor coverings, equipment, decorations or fixtures, shall be repaired by Landlord,
and the rent, until such repairs are made, shall be apportioned according to the portion of the
Premises which are still usable. If the damage shall be so extensive as to render the Premises
wholly untenantable, in Landlord’s sole reasonable opinion, the rent shall cease until such time as
the Premises shall become tenantable. However, if the damage is so extensive, in Landlord’s sole
reasonable opinion, that the Premises cannot be made tenantable within three (3) months from the
date of the fire or other casualty, either party shall have the right to terminate this Lease upon
ten (10) days written notice to the other. In case the Building generally throughout (though the
Premises may not be affected) is so injured or destroyed by fire or other casualty that Landlord
shall decide not to rebuild or reconstruct the Building, the term of this Lease shall cease upon
ten (10) days written notice sent by Landlord and the rent shall be paid up to the time of such
destruction and the Lease shall thereafter be of no further effect. In the event that any question
shall arise between Landlord and Tenant as to whether or not repairs shall have been made with
reasonable dispatch, due allowance shall be made for any delays, which may arise in connection with
the adjustment of the fire insurance loss and for any delays arising out of what are commonly known
as “labor troubles” or “material troubles” or from any other cause beyond Landlord’s control. In
any event Landlord shall not be liable to Tenant by reason of fire or other damage to the Building
or the Premises. Anything contained herein to the contrary notwithstanding, if the proceeds of
Landlord’s insurance (recovered or recoverable) as a result of any damage to the demised premises
by a casualty shall be insufficient to pay for the cost of repair of the premises, or if the
premises shall be damaged by a casualty which is not covered by Landlord’s insurance, Landlord
shall have the right to terminate this Lease by giving written notice of such termination to Tenant
within ninety (90) days after the date of such casualty.

 

 

     13. CONDEMNATION

          If the Land or Building in which the Premises are located, or any part of said Land or
Building be condemned or otherwise leased or taken under the right of eminent domain by any
competent authority for public use or is taken by private purchase in lieu of condemnation, this
Lease shall at the option of the Landlord terminate upon thirty (30) days notice to Tenant and rent
shall be paid pro rata to such termination date. Tenant shall have no right or claim to any part of
the award or purchase price.

          Tenant shall have the right to make a separate claim against the condemnor for its leasehold
interest, removal expenses, business dislocation, damages and moving expenses in connection with
the condemnation. Any claim by Tenant shall be prosecuted at Tenant’s sole cost and expense.

     14. NO ABATEMENT

          No diminution or abatement of rent, or other compensation, shall be allowed for inconvenience
or injury arising from the making of repairs, alterations or improvement to the Building nor for
any space taken to comply with any law, ordinance, or order of governmental authority, nor for the
Landlord’s failure, delay, or interruption in supplying any service or in performing any obligation
on Landlord’s part to be performed if the same be occasioned or caused, in whole or in part, by
accident, alterations, or repairs, desirable or necessary to be made, or by Landlord’s inability or
difficulty in obtaining labor, material or supplies, or by reason of any cause beyond Landlord’s
control. No such interruption, curtailment, or change of any such “service” shall be deemed a
constructive or actual eviction. Landlord shall not be required to furnish any of such “services”
during any period wherein Tenant shall be in default in the payment of rent. Provided, however,
that Landlord agrees that upon notice from Tenant it shall commence and diligently pursue cure of
any condition which is the responsibility of Landlord pursuant to the terms of this Lease.

     15. ABANDONMENT

          In case Tenant shall fail to take possession at the commencement of the term, or in case the
Premises or any part thereof shall be vacated during the term prior to the expiration of the term
of this Lease, Landlord shall have the right to enter the Premises without instituting any
proceeding either by force or otherwise without being liable for damages therefor, and to relet the
same, or any part thereof, for the unexpired portion of the term or longer and to collect the rent
therefor, and to apply the rents so collected to the payment of rent and all other sums payable to
Landlord. Tenant shall in such case remain responsible to Landlord for any and all deficiency, loss
and damage suffered by Landlord, as provided in Paragraph 18. For the purpose of this Paragraph the
Premises shall be deemed to have been vacated when Tenant shall have vacated the Premises and been
away therefrom for ten (10) consecutive days exclusive of holidays, irrespective of whether the
keys have been delivered to Landlord or not.

     16. TENANT’S INSURANCE

          Tenant shall, during the term of this lease, maintain insurance against public liability,
including that from personal injury or property damage in or about the Premises

 

 

resulting from the occupation, use or operation of the Premises insuring both Landlord and
Tenant, in amounts of not less than One Million Dollars ($1,000,000.00) in respect to bodily injury
or death to any one person, of not less than One Million Dollars ($1,000,000.00) in respect of
bodily injury or death to more than one person in one accident, and of not less than Five Hundred
Thousand $500,000.00) in respect of property damage. All policies of insurance provided for in this
Paragraph 16, shall be issued in form reasonably acceptable to Landlord by insurance companies
qualified to do business in Florida. Each and every such policy: (I) shall be issued in the names
of Tenant with Landlord and any other parties in interest from time to time designated in writing
by notice from Landlord to Tenant named as an additional insured; (ii) shall be for the mutual and
joint benefit and protection of Landlord and Tenant and any such other parties in interest as
additional insureds; (iii) shall (or a certificate thereof shall) be delivered of each to Landlord
and any such other parties in interest within ten (10) days before delivery of possession of the
Premises to Tenant and thereafter within thirty (30) days prior to the expiration of each policy,
and as often as any such policy shall expire or terminated, renewal or additional or additional
policies shall be procured and maintained in like manner and to like extent; (iv) shall contain a
provision that the insurer will give to Landlord and such other parties in interest at least thirty
(30) days notice in writing in advance of any cancellation, termination or lapse, or the effective
date of any reduction in the amounts of insurance; (v) shall be written as a primary policy which
does not contribute to and is not in excess of coverage which Landlord may carry; (vi) shall be
non-contributing as to Landlord any mortgagee; and (vii) shall contain a provision that Landlord
and any such other parties in interest, although named as an insured, shall nevertheless be
entitled to recover under said policies for any loss occasioned to it, his servants, agents and
employees by reason of the negligence of Tenant. Any insurance provided for herein, may be
maintained by means of a blanket policy or policies provided Landlord shall be named as an
additional insured thereunder, as his interest may appear; the coverage afforded Landlord and any
such other parties in interest will not be reduced or demised by reason of the use of such blanket
policy of insurance; and the requirements set forth in this Paragraph 16. are otherwise satisfied.
Tenant agrees to permit Landlord at all reasonable times to inspect the policies of insurance of
Tenant with respect to the Premises for which policies or copies thereof are delivered to Landlord.

     17. DEFAULT; LANDLORD’S REMEDIES

          A. Events of Default. The Tenant shall be in default under this Lease if any one or
more of the following events occurs:

               (I) Tenant shall fail to pay the Security Deposit or any part thereof, any other amounts due
under this Lease, any installment of the Annual Rental and/or any additional rent called for
hereunder as and when the same shall become due and payable, and such default shall continue for a
period of five (5) days after the same is due;

               (ii) Tenant shall default in the performance of or compliance with any of the other terms or
provisions of this Lease, other than nonpayment, as set forth in (I) above, and such default shall
continue for a period of ten (10) days after the giving of written notice thereof from landlord to
Tenant, or, in the case of any such default which cannot with bona fide due diligence, secured
within ten (10) days, Tenant shall fail to proceed promptly after the giving of such notice with
bona fide due diligence to cure such default and thereafter to prosecute the

 

 

curing thereof with said due diligence within such period of ten (10) days (it being intended
that as to a default not susceptible of being cured with due diligence within ten (10) days, the
time within which such default may be cured shall be extended for such period as may be necessary
to permit the same to be cured with due diligence):

               (iii) Tenant shall assign or transfer this Lease or sublet the Premises in a manner not
permitted by Paragraph 19;

               (iv) Tenant shall file a voluntary petition in bankruptcy or an Order for Relief be entered
against it, or shall file any petition or answer seeking any arrangement, reorganization,
composition, readjustment or similar relief under any present or future bankruptcy or other
applicable law, or shall seek or consent to or acquiesce in the appointment of any trustee,
receiver, or liquidator of Tenant of all or any substantial part of Tenant’s properties;

               (v) If, within forty-five (45) days after the filing of any involuntary petition in bankruptcy
against Tenant or the commencement of any proceeding against Tenant seeking any arrangement,
reorganization, composition, readjustment or similar relief under any law, such proceeding shall
not have been dismissed, or if, within ten (10) days after the appointment of a receiver, without
the consent or acquiescence of Tenant, of any substantial part of its properties, such appointment
shall not have been vacated or stayed on appeal or otherwise, or if, within ten (10) days after the
expiration of any such stay, such appointment shall not have been vacated; or

               (vi) Tenant shall vacate or abandon the Premises; then, or not continually operate its
business therein, and in any such event, or during the continuance thereof, Landlord may, at his
option, by written notice to Tenant, designate a date not less than five (5) days from the giving
of such notice on which this Lease shall end; and thereupon, on such date, this Lease and all
rights of Tenant hereunder shall be deemed ended and terminated.

          B. Landlord’s Remedies. Upon the happening of any event of default as set forth
herein, Landlord shall have the right, at Landlord’s sole and exclusive option, in addition to and
cumulative with any other rights Landlord may have, at law or in equity, or which shall be granted
to Landlord statutorily, to exercise any one or more of the following remedies, without notice or
demand whatsoever (except as expressly provided for herein.):

               (I) Termination of Lease. To terminate this Lease upon three (3) days written notice
to Tenant;

               (ii) Surrender of Premises. Upon any such termination of this Lease, Tenant shall quit
and peacefully surrender the Premises to Landlord, and Landlord, upon and at any time after such
termination, may without further notice reenter and repossess the Premises, whether by force,
summary proceedings or otherwise, without being liable to any prosecution or damages therefor, and
no person claiming through or under Tenant or by virtue of any statute or of any order of any court
shall be entitled to possession of the Premises. Landlord may further enter the demised premises
and without further demand or notice proceed to distress and sale of the goods, chattels and
personal property there found, to levy the rent, and Tenant shall pay all costs and officers’
commissions, including watchmen’s wages and sums chargeable to Landlord,

 

 

and further including any sums chargeable according to state law as commissions to the sheriff
or other person making the levy, and such amounts shall immediately attach and become part of the
claim of Landlord for rent. Any tender of rent without said costs, commissions and charges made
after the issuance of a warrant for distress shall not be sufficient to satisfy the claim of
Landlord.

               (iii) Repossession. Without terminating this Lease to enter upon and take possession
of the Premises and expel or remove Tenant and any other person who may be occupying the Premises
or any part thereof, without being liable for prosecution or any claim for damages thereof. Nothing
contained herein shall be construed to require the Landlord to exercise the remedies set forth in
this paragraph.

               (iv) Reletting. At any time or from time to time after any such termination of this
Lease or retaking possession of the Premises, Landlord may relet the Premises or any part thereof,
in the name of Landlord or otherwise, for such term or terms and on such conditions as Landlord in
his discretion may determine, and may collect and receive the Annual Rental therefor. Landlord
shall in no way be responsible or liable for any failure to relet the Premises or any part thereof
or for any failure to collect any Annual Rental due upon any such reletting. Landlord shall not, in
any event, be required to pay Tenant any surplus of any sums received by Landlord on a reletting of
the Premises in excess of the rent or other sums provided in this Lease.

               (v) Acceleration. If an event of default shall occur, in addition to any other rights
or remedies Landlord may have under this Lease, at law or in equity, Landlord may accelerate, in
whole or any part of the rent, or any abated rent, and any additional rent and any other charges,
payments, costs and expenses herein agreed to, to be paid by Tenant for the entire unexpired
balance of the term of this Lease, and any rent, other charges, payments, costs and expenses, if so
accelerated, shall, in addition to any and all installments of rent already due and payable and in
arrears, and/or any other charge, expense or cost herein agreed to be paid by Tenant which may be
due and payable and in arrears, be deemed due and payable as if, by the terms and provisions of
this Lease, such accelerated rent and other charges, payments, costs and expenses, were on that
date payable in advance.

               (vi) Collect Rents from Subtenants. Require all rental payments and other payments due
from any subtenant or assignees occupying all or any portion of the Premises which would otherwise
be paid to Tenant, to be paid directly to Landlord and to apply such rents paid to or collected by
Landlord against any rent or other charges due Landlord by Tenant hereunder. Tenant hereby
authorizes and directs said assignees or subtenants, their successors and assigns, to pay such
amounts due Landlord upon notification by Landlord that it has the right to collect same pursuant
to this paragraph. No direct collection by Landlord under this subparagraph (vi) shall act in any
way to release Tenant from its obligations hereunder.

               (vii) Removal of Property. Landlord may remove all or any part of Tenant’s property
(including furniture, fixtures and equipment) from the Premises and any property so removed may be
stored at the cost of and for the account of Tenant and Landlord shall not be responsible for the
care or safekeeping thereof. Tenant hereby waives any and all

 

 

claims for any loss, destruction, and/or damage or injury which may be occasioned by any of
the aforesaid acts.

               (viii) Survival of Obligations. No termination, pursuant to this Paragraph 17 of this
Lease, shall relieve Tenant of its liability and obligations under this Lease, and such liability
and obligations shall survive any such termination. No re-entry or taking possession of the
premises, or acceptance by Landlord of Tenant’s keys to the Premises or any other action by
Landlord, shall be construed as an election on Landlord’s part to terminate this Lease, unless
written notice of such election is given to Tenant. Notwithstanding any action taken by Landlord
pursuant to this Paragraph 17(B), Landlord may, at any time thereafter, elect to terminate this
lease for such previous default or breach.

     18. DEFICIENCY AFTER PRIOR TERMINATION OR ABANDONMENT AND WAIVER BY TENANT

          In case of reentry, repossession or termination of this Lease prior to the expiration date
thereof, Tenant shall remain liable, at the option of Landlord, for the Annual Rental and
additional rent, if any, for the balance of said term, whether the Premises be relet or not, and
for all expenses, including reasonable attorneys’ fees through all appeals thereof of the Landlord
in reentering, repossessing and re-renting, the Premises. Tenant agrees to pay any deficiency from
said re-renting to Landlord at the end of each and every month. Any suit brought by Landlord to
enforce collection of such deficiency shall not prejudice Landlord’s right to enforce the
collection of any further deficiency for subsequent period. Landlord may relet the whole or any
part of the Premises for the whole of such unexpired period of this Lease or longer for any rental
obtainable, giving such concessions of rent and making such usual or special repairs, alterations,
decorations and doing such painting for any new Tenant as it may in its sole discretion deem
advisable. Tenant hereby waives any right of redemption.

     19. ASSIGNMENT AND SUBLETTING

          A. Assignment and Subletting:

               (I) Tenant shall not, whether voluntarily, involuntarily, or by operation of law, or
otherwise: (a) assign or otherwise transfer this Lease or term and estate hereby granted, or offer
to advertise to do so; or (b) mortgage, encumber, or otherwise hypothecate this Lease or the
Premises or any part thereof in any manner whatsoever, without in each instance obtaining the prior
written consent of Landlord, which consent shall not be arbitrarily withheld. Notwithstanding and
in addition to the foregoing, Landlord shall have no obligation to allow assignment in any event,
unless and until Landlord shall determine, in its sole and absolute discretion that the prospective
assignee is at least as credit worthy as Tenant was at the execution of this Lease, and any
prospective assignee has provided such financial information to Landlord, as shall be required by
Landlord, and deemed necessary to allow Landlord to determine such credit worthiness.

               (ii) The provisions of Paragraph 19.A(I) shall apply to a transfer exceeding 50% of the stock
of Tenant as if such transfer were an assignment of this Lease; but said provisions shall not apply
to a corporation whose stock is registered with the Securities and

 

 

Exchange Commission and publicly traded, or to transactions with a corporation into or with
which Tenant is merged or consolidated or to which substantially all of Tenant’s assets are
transferred, or to any corporation which controls or which is controlled by Tenant, or is under
common control of Tenant, provided in any of such events: (a) the successor to Tenant has a net
worth computed in accordance with generally accepted accounting principles at least equal to the
greater of (y) the net worth of Tenant immediately prior to such merger, consolidation or transfer
or (z) the net worth of Tenant herein named on the date of this Lease; and (b) proof satisfactory
to Landlord of such net worth shall have been delivered to Landlord at least ten (10) days prior to
the effective date of such transaction.

               (iii) Further, the Landlord may consent to the sublease of all or any part of the Premises
provided the Tenant enters into a sublease containing the same terms and conditions contained
herein (exclusive of rent) and the Landlord shall receive one-half (1/2) of any rent in excess of the
Base Rent of this Lease including sales tax, paid by a sublessee.

               (iv) Any assignment agreed to by Landlord shall be evidenced by a valid executed assignment
and assumption of lease. Any attempted transfer, assignment, subletting, mortgaging or encumbering
of this Lease in violation of this Paragraph shall be void and confer no rights upon any third
(3rd) person. Such attempt shall, at Landlord’s option, constitute a material breach of this Lease
and entitle Landlord to the remedies provided for default.

               (v) If, without such prior written consent, this Lease is transferred or assigned by Tenant,
or if the Premises, or any part thereof, are sublet or occupied by anybody other than Tenant,
whether as a result of any act or omission by Tenant, or by operation of law or otherwise,
Landlord, whether before or after the occurrence of an event of default, may, in addition to, and
not in diminution of or substitution for, any other rights and remedies under this Lease or
pursuant to law to which Landlord may be entitled as a result thereof, collect rent from the
transferee, assignee, subtenant or occupant and apply the net amount collected to the rent herein
reserved without thereby waiving any of Landlord’s rights reserved herein, nor shall any such
collection constitute a release of Tenant from any obligations hereunder.

               (vi) Anything contained in the foregoing provisions of this Paragraph to the contrary
notwithstanding neither Tenant or any other person having an interest in the possession, use,
occupancy or utilization of the Premises shall enter into any lease, sublease, license, concession
or other agreement for use, occupancy or utilization of space in the Premises which provides for
rental or other payment for such use, occupancy or utilization based, in whole or in part, on the
income or profits derived by any person from the Premises leased, used, occupied or utilized (other
than an amount based on a fixed percentage or percentages of receipts or sales), and any such
purported lease, sublease, license, concession or other agreement shall be absolutely void and
ineffective as a conveyance of any right or interest in the possession, use, occupancy or
utilization of any part of the Premises.

          B. Tenant’s Liability. Tenant shall always, and notwithstanding any such assignment,
attempted assignment or subleasing, and notwithstanding the acceptance of rent by Landlord from any
such assignee or sublessee, remain liable for the payment of rent hereunder and for the performance
of all of agreements, conditions, covenants and terms herein contained,

 

 

on the part of Tenant herein to be kept, saved or performed, his liability to always be that
of principal and not of surety, nor shall the giving of such consent to an assignment or sublease,
be deemed a complete performance of the said covenants contained in this Paragraph so as to permit
any subsequent assignment or subleasing without the like written consent, provided however, any
approved, assignment or sublease consented to by Landlord at a rent equal to or greater than the
rent due hereunder, for a term equal to or greater than the remaining term existing under this
Lease to a subtenant or assignee who shall be determined by Landlord to be of equal or greater
credit worthiness than Tenant, pursuant to the provisions of this Lease, shall act to release the
Tenant from any further liability under the Lease, except any obligation to pay amounts due under
the Security Deposit provision, as set forth herein.

          C. Landlord’s Right of Last Refusal. Notwithstanding the foregoing other than
Paragraph 19.A(ii), where Tenant desires to assign or sublease, the Landlord shall have the right,
but not the obligation, to cancel and terminate the Lease and deal with Tenant’s prospective
assignees or subtenant directly without any obligations to Tenant terminate the Lease, and
reacquire the premises on its own account.

          D. Landlord’s Transfer. The Landlord shall have the right to sell, assign, mortgage or
otherwise encumber or dispose of Landlord’s interest in the Building and Premises and this Lease.

          E. Collection of Rent From Others. Subject to the provisions of Paragraph 19.B., if
the Tenant’s interest in this Lease be assigned, or if the Premises or any part thereof be sublet,
Landlord may, after default by Tenant, collect rent from the assignee or subtenant and apply the
net amount collected to the rent due from Tenant. No such collection shall be deemed a waiver of
the covenant herein against sale, transfer, mortgage, assignment and subletting or a release of
Tenant from the performance of the covenants herein contained. In the event of such default, Tenant
hereby assigns the rent due from the subtenant or assignee to Landlord, hereby authorizes such
subtenant or assignee to pay the rent directly to Landlord.

          F. Information as to Subtenants. If the Premises shall be sublet in whole or in part
by Tenant, Tenant will, on demand of Landlord, furnish and supply in writing, within three (3) days
after such demand, any and all information with regard to said subtenants which Landlord may
request. Nothing herein contained shall be construed to be a consent to any subletting or a waiver
of the covenant against subletting contained herein.

     20. RIGHT OF LANDLORD TO USE ENTRANCES ETC., AND TO CHANGE SAME

          For the purpose of making repairs or alterations in any portion of the Building of which the
Premises form a part, Landlord may use one or more of the street entrances, halls, passageways and
elevators of the said Building, provided, however, that there be no unnecessary obstruction of the
right of entry to the Premises while the same are occupied. Landlord may at any time change the
name or number of the Building, remodel or alter the same, or the location any entrance thereof, or
any other portion thereof not occupied by Tenant, and the same shall not constitute a constructive
or actual, total or partial eviction.

 

 

     21. ATTORNEYS’ FEES

          If either party shall at any time default hereunder, and if the non-defaulting party shall, in
connection with such default, retain an attorney to institute any action and/or render other
professional services in connection with enforcing the non-defaulting party’s rights under the
Lease, then the losing party will reimburse the prevailing party for the expense of attorneys fees
and disbursements thereby incurred by the prevailing party. The amount of such expenses shall be
collected as additional rent, or shall be credited towards rent due hereunder in inverse order of
payment due hereunder.

     22. EXAMINATION OF PREMISES AND NO ORAL REPRESENTATION

          Tenant has been given an adequate opportunity to make such investigations and inspections of
the Premises, the Building and the Entire Property as it deemed necessary or appropriate, and has
in fact, made such investigations and inspections and determined the Premises, the Building and the
Entire Property to be satisfactory, and has accepted and hereby accepts the Premises in its “as-is”
“where-is” condition without any representation, covenant or warranty (either express or implied)
of any nature other than as specifically set forth herein. The taking possession of the Premises,
including title thereto by Tenant shall be conclusive evidence that the Premises were in good and
satisfactory condition at the time such possession was taken. No representations, except those
contained herein, have been made on the part of Landlord with respect to the title, state of repair
or condition of the Premises or the Building. Tenant will make no claim on account of any
representation whatsoever, whether made by any renting agent, broker, offices or other
representative of Landlord or which may be contained in any circular, prospectus of advertisement
relating to the Premises or otherwise, unless the same is specifically set forth in this Lease.

     23. SUBORDINATION AND ATTORNMENT

          A. 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 of the
property and/or the Building now or hereafter existing and to all mortgages which may now or
hereafter affect the Property and/or the Building and/or any of such leases (whether or not such
mortgages shall also cover other lands and/or buildings and/or leases). This subordination shall
likewise apply to each and every advance made or hereafter to be made under such mortgages, to all
renewals, modifications, replacements and extensions of such leases and such mortgages and to
spreaders and consolidations of such mortgages. This Paragraph shall be self-operative and no
further instrument of subordination shall be required. In confirmation of such subordination,
Tenant shall promptly execute, acknowledge and deliver any instrument the Landlord, the lessor
under any such lease or the holder of any such mortgage (or their respective
successors-in-interest) may reasonably request to evidence such subordination. If Tenant fails to
execute, acknowledge or deliver any such instrument within ten (10) days, after request therefor,
Tenant hereby irrevocably constitutes and appoints Landlord as Tenant’s attorney-in-fact, coupled
with an interest, to execute and deliver any such instruments for and on behalf of Tenant. Any
mortgage to which this Lease is subject and subordinate is hereinafter referred to as a “Mortgage”
and the holder of a Mortgage is hereinafter referred to as a “Mortgagee.”

 

 

          B. Notice of Mortgagee. If any act or omission of Landlord would give Tenant the
right, immediately or after the lapse of a period of time, to cancel this Lease or to claim a
partial or total eviction, Tenant shall not exercise such right: (I) until it has given written
notice of such act or omission to Landlord and each Mortgagee whose name and address shall
previously been furnished to Tenant; and (ii) until a reasonable period of time for remedying such
act or omission shall have elapsed following the giving of such notice and following the time when
such Mortgagee shall have become entitled under such Mortgage, as the case may be, to remedy the
same (which reasonable period shall in no event be less than the period to which Landlord would be
entitled under this Lease or otherwise, after similar notice to effect such remedy), provided such
Mortgagee shall with due diligence, give Tenant notice of intention to, and commence and continue
to, remedy such act or omission.

          C. Attornment. If any Mortgagee shall succeed to the rights of Landlord hereunder,
whether through possession or foreclosure action or delivery of a new lease or deed, then, at the
request of such party (hereinafter referred to as “Successor Landlord”), Tenant shall attorn to and
recognize each Successor Landlord as Tenant’s Landlord under this Lease and shall promptly execute
and deliver any instrument such Successor Landlord may reasonably request to evidence such
attornment. Upon such attornment, this Lease shall continue in full force and effect as a direct
lease between Successor Landlord and Tenant upon all the terms, conditions, and covenants as set
forth in this Lease except that the Successor Landlord shall not: (I) be liable for any previous
act or omission of Landlord under this Lease; (ii) be subject to any offset, not expressly provided
for in this Lease, which theretofore shall have accrued to Tenant against Landlord; or (iii) be
bound by any previous modification of this Lease or by any previous prepayment, unless such
modification or prepayment shall have been previously approved in writing by such Successor
Landlord.

     24. HOLDING OVER

          If the Tenant retains possession of the Premises or any part thereof after the termination of
the terms or any extension thereof, by lapse of time or otherwise, unless Landlord shall approve of
such holding over, in which event Tenant shall pay the then existing monthly rent, the Tenant shall
pay the Landlord rent at double the Annual Rental payable for the year immediately preceding said
holdover, computed on a per month basis, for the time the Tenant thus remains in possession. The
provisions of this Paragraph 28 do not waive the Landlord’s right of re-entry or any other right
hereunder. Any retention of the Premises after the termination of this Lease or any extension
thereof shall be considered as a month-to-month holdover unless otherwise agreed to in writing by
both parties.

     25. CERTIFICATE BY TENANT

          Tenant shall deliver to Landlord or to its mortgagees auditors, or prospective purchaser, or
to the owner of the fee, when requested by Landlord a certificate to the effect that this Lease is
in full force and effect and that Landlord is not in default herein or stating specifically any
exceptions thereto. Failure to give such a certificate within ten (10) days after written request
shall be conclusive evidence that Lease is in full force and effect and Landlord is not in default
and Tenant shall be estopped from asserting any defaults known to him at that time.

 

 

     26. REMEDIES CUMULATIVE

          The various rights, remedies, powers and elections of Landlord reserved, expressed or
contained in this Lease, are cumulative and no one of them shall be deemed to be exclusive to the
others or of such other rights, remedies, powers, options or elections as are now, or may hereafter
be, conferred upon Landlord by law.

     27. NO WAIVER OR PERFORMANCE

          No waiver by Landlord of any provision hereof shall be deemed to have been made unless such
waiver be in writing signed by Landlord. The failure of Landlord to insist upon the strict
performance of any of the covenants or conditions of this Lease, or to exercise any option herein
conferred, shall not be construed as waiving or relinquishing for the future any such covenants,
conditions or options, but the same shall continue and remain in full force and effect. No act of
Landlord or its agent during the term hereof shall be deemed on acceptance of a surrender of the
Premises unless made in writing and personally subscribed by Landlord neither shall the delivery of
the keys to the premises by Tenant to Landlord or its agents be deemed a surrender and acceptance
thereof. No payment by Tenant of a lesser amount than the monthly rent herein stipulated shall be
deemed to be other than on account of the stipulated rent.

     28. NON-LIABILITY AND INDEMNIFICATION

          A. Non-Liability of Landlord. Neither Landlord nor any beneficiary, agent, servant, or
employee of Landlord, nor any Mortgagee, shall be liable to Tenant for any loss, injury, or damage,
to Tenant or to any other person, or to its or their property, irrespective of the cause of such
injury, damage or loss, unless caused by or resulting from the negligence or willful misconduct of
Landlord, his agents, servants or employees in the operation or maintenance of the Premises or the
Building, subject to the doctrine of comparative negligence in the event of contributory negligence
on the part of Tenant or any of its subtenants or licensees or its or their employees, agents or
contractors. Tenant recognizes that any Mortgagee will not be liable to Tenant for injury, damage
or loss caused by or resulting from the negligence or willful misconduct of the Landlord. Further,
neither Landlord, any Mortgagee, not any partner, director, officer, agent, servant, or employee of
Landlord shall be liable: (I) for any such damage caused by other Tenants or persons in, upon or
about the Building, or caused by damages arising out of any loss of use of the Premises or any
equipment or facilities therein by Tenant or any person claiming through or under Tenant.

          B. Indemnification by Tenant. Tenant shall indemnify and hold Landlord and all
Mortgagees and his and their respective partners, directors, officers, agents, employees and
beneficiaries harmless from and against any and all claims from or in connection with (I) the
conduct or management of the Premises or any business therein, or any work or thing whatsoever
done, or any condition created (other than by Landlord) in or about the Premises during the term of
this Lease or during the period of time, if any, prior to the Commencement Date that Tenant may
have been given access to the Premises; (ii) any act, omission or negligence of Tenant or any of
its subtenants or licensees or its or their partners, directors, officers, agents, employees or
contractors; (iii) any accident, injury or damage whatsoever (unless caused solely by Landlord’s
negligence or willful misconduct) occurring in, at or upon the Premises; and (iv) any breach or

 

 

default by Tenant in the full and prompt payment and performance of Tenant’s obligations under
this Lease; together with all costs, expenses and liabilities incurred in or in connection with
each such claim or action or proceeding brought thereon including, without limitation, all
reasonable attorneys’ fees and expenses. In case any action or proceeding be brought against
Landlord and/or Mortgagee and/or his or their partners, directors, officers, agents and/or
employees by reason of any such claim, Tenant, upon notice from Landlord or such Mortgagee, shall
resist and defend such action or proceeding (by counsel reasonably satisfactory to landlord or such
Mortgagee).

          C. Independent Obligations; Force Majeure. The obligations of Tenant hereunder shall
not be affected, impaired or excused, nor shall Landlord have any liability whatsoever to Tenant,
because (I) Landlord is unable to fulfill, or is delayed in fulfilling any of his obligations under
this Lease by reason of strike, other labor trouble, governmental pre-emption of priorities or
other controls in connection with a national or other public emergency or shortages of fuel,
supplies, labor or materials, Acts of God or any other cause, whether similar or dissimilar, beyond
Landlord’s reasonable control. Tenant shall not hold Landlord liable for any latent defect in the
Premises or the Building nor shall Landlord be liable for injury or damage to person or property
caused by fire, theft, or resulting from the operation of elevators, heating or air-conditioning or
light apparatus, or from falling plaster, or from steam, gas, electricity, water, rain, or
dampness, which may leak or flow from any part of the Building, or from the pipes, appliances or
plumbing work of the same.

     29. ADDITIONAL RENT

          If Landlord shall make any expenditures, for which Tenant is liable under this Lease, or if
Tenant shall fail to make any payment due from him under this Lease, the amount thereof shall at
Landlord’s option be deemed “additional rent” and shall be due with the next succeeding installment
of rent. For the nonpayment of any “additional rent” Landlord shall have the same remedies and
rights that Landlord has for the nonpayment of the Annual Rent.

     30. NOTICES

          All notices shall be in writing. Any notice by Landlord to Tenant shall be deemed to be duly
given on the date delivered if sent by hand delivery or one day after posting if sent otherwise, if
either delivered personally to Tenant or sent by registered or certified mail, addressed to Tenant
at the Building in which the Premises are situated. Any notice by Tenant to Landlord shall be
deemed duly given if sent by registered or certified mail to Landlord at: 50 E. Sample Road, Suite
400, Pompano Beach, FL 33064 (or at such other address as. may hereafter be designated by
Landlord), and also to the agent of Landlord charged with the renting and management of
the-Building.

     31. SURRENDER AT EXPIRATION OF TERM

          Tenant agrees at the expiration of the term to quit and surrender the Premises and everything
belonging to or connected therewith in as good state and condition as reasonable wear and use
thereof will permit, and to remove all signs, advertisements and rubbish from the same Premises;
and Tenant hereby expressly authorizes Landlord, as the agent of Tenant, to remove

 

 

such rubbish and make such changes and repairs as may be necessary to restore the Premises to
such condition at the expense of Tenant.

     32. RULES AND REGULATIONS

          Tenant agrees to observe and comply with and Tenant agrees that his agents and all persons
visiting in the Premises will observe and comply with the rules and regulations annexed hereto and
such other and further reasonable rules and regulations as Landlord may from time to time deem
needful and prescribe for the reputation, safety, care and cleanliness of the Building, and the
preservation of good order therein and the comfort, quiet and convenience of other occupants of the
Building, which rules and regulations shall be deemed terms and conditions of this Lease. Landlord
shall not be liable to Tenant for the violation of any of the said rules and regulations by any
other Tenant or person.

     33. IMPROVEMENTS IN THE PREMISES

          Upon Tenant taking possession of the Premises, Tenant shall be deemed to have accepted the
Premises and the alterations and improvements in their “as-is/where-is” condition and as further
set forth in Paragraph 22 above.

          In no event shall Tenant have the right to create or permit there to be established, any lien
or encumbrance of any nature against the Premises or the Building. Tenant shall fully pay the cost
of any improvement or improvements made or contracted by Tenant. Tenant shall notify any
contractors hired or retained by Tenant of this provision, in writing, with a copy to Landlord. Any
mechanic’s lien filed against the Premises or the Building for work claimed to have been done, or
materials claimed to have been furnished to Tenant shall be duly discharged by Tenant within ten
(10) days after the filing of the lien if Tenant shall fail to discharge such lien, Landlord may
(but shall not be obligated to) discharge said lien either by payment or bonding of the amount
claimed and such amount shall be payable as additional rent, and shall bear interest at the highest
legal rate.

          Prior to commencement of any improvements, alteration or construction by Tenant, Tenant shall,
if required by Landlord, obtain a full payment and performance bond from a Bonding or Insurance
company doing business in Florida, a Letter of Credit, or some other form of security, acceptable
to Landlord in its sole discretion, in an amount deemed reasonably sufficient by Landlord, in its
sole, reasonable discretion, to cover the greater of (I) the costs of completion of the Tenant
Improvements set forth in this Paragraph in accordance with the approved plans and specifications,
or (ii) the amount of the approved construction contract; subject to the verification by Tenant’s
general contractor or engineer, and naming Landlord as a beneficiary. All such construction shall
be installed and completed in accordance with all applicable building codes and the approved plans
and specifications, and shall be approved by any architect or engineer performing inspection
services for Tenant.

     34. DELAYED POSSESSION

          If the Building, the Premises or the improvements therein, should not be completed, or if the
occupant whose lease expires prior to the day fixed for the commencement of the term herein demised
shall not have surrendered the Premises, or if for any other reason

 

 

Landlord should be unable to give Tenant possession of the Premises at the time of the
commencement of the term as above provided, the commencement of the term shall be postponed until
Landlord is able to give possession, and the rent for the Premises shall not commence until such
possession is given to Tenant or such later date as is specified herein; provided, however, that
Landlord shall not be liable for damages, if any, sustained by Tenant on account of the failure to
obtain possession and provided also that the delay in giving possession shall in no other way
affect the obligation of Tenant hereunder, irrespective of the duration of such delay.

     35. DIMENSIONS

          It is understood that any dimensions or sizes on either working or renting plans are merely
approximations and whether such plans are attached or are made part of this Lease or not, Landlord
shall not be liable, and this Lease shall not be void or voidable, because of exigencies arising
during construction, alteration or preparation for Tenant’s occupancy result in changes not
indicated on such plans. Tenant acknowledges that the actual useable area of Premises may be
different (either greater or lesser) than the GLA as GLA utilizes a portion of common floor area in
its calculation (BOMA methodology).

     36. SECURITY DEPOSIT

          Upon execution hereof, Tenant shall deposit with Landlord the sum of TWENTY THOUSAND SEVEN
HUNDRED AND 00/XX DOLLARS ($20,700.00), in cash, which sum is the approximate equilvalent of two
months’ Base Rent together with the estimated monthly share of operating expenses, electricity
charges and Additional Rent, plus applicable sales tax thereon. The said sum represents security
for the faithful performance and observance by Tenant of the terms, provisions and conditions of
this Lease. It is agreed that in the event Tenant defaults in respect of any of the terms,
provisions and conditions of this Lease, including, but not limited to, the payment of Annual Rent
and additional rent, Landlord may use, apply or retain the whole or any part of the security so
deposited to the extent required for the payment of any rent and additional rent or any other sum
as to which Tenant is in default or for any sum which landlord may expend or may be required to
expend by reason of Tenant’s default in respect of any of the terms, covenants and conditions of
this Lease, including, but not limited to, any damages or deficiency in the reletting of the
Premises, whether such damage occurred before or after summary proceedings or other re-entry by
Landlord. In the event that Tenant shall fully and faithfully comply with all of the terms,
provisions, covenants and conditions of this Lease, Landlord shall apply so much of the Security
Deposit that shall remain with Landlord, towards the Base Rent, operating expenses, and Additional
Rent, plus applicable sales tax thereon, due for the last month of this Lease. At the termination
of the Lease (including any extensions thereof), the remaining balance of the Security Deposit (if
any), but not any prepaid rents, as tendered by Tenant, pursuant to this Paragraph, excluding any
rent portion thereof, shall be returned to Tenant after the date fixed at the end of the Lease and
after delivery of entire possession of the Premises to Landlord. In the event of a sale of the Land
and Building, of which the Premises form a part, Landlord shall have the right to transfer the
security to the vendee, and Landlord shall thereupon be released by Tenant from all liability for
the return of such security and Tenant agrees to look solely to the new Landlord for the return of
said security. Tenant shall receive notice of any such sale and transfer of the Security Deposit.
It is agreed that the

 

 

provisions hereof shall apply to every transfer or assignment made of the security to a new
Landlord. Tenant further covenants that it will not assign or encumber the moneys deposited herein
as security and that neither Landlord nor its assigns shall be bound by any such assignment or
encumbrance. Landlord shall not be required to keep the security in a segregated account and the
security may be commingled with other funds of Landlord, and in no event shall Tenant be entitled
to any interest on the security. The mortgagee holding a mortgage encumbering the Building shall
not be responsible to Tenant for the security deposit in the event such mortgagee becomes the owner
of the Building through foreclosure or by reason of a deed in lieu thereof. Tenant agrees not to
look to any mortgagee or Purchaser at any foreclosure sale or Guarantee in a Deed given in lieu of
foreclosure for the return of any Security Deposit given to Landlord unless Landlord has given such
Deposit to any such entity, however, in such event, any amount of such security shall be credited
to Tenant, pursuant to the Lease.

     37. QUIET POSSESSION AND OTHER COVENANTS

          Landlord covenants that, if and so long as Tenant pays the Annual Rental and additional rent
reserved by this Lease and performs and observes all of the covenants, conditions and rules and
regulations hereof, Tenant shall quietly enjoy the Premises, subject, however, to the terms of this
Lease. Tenant expressly agrees for himself, his executors, administrators, personal
representatives, successors and assigns that the covenant of quiet enjoyment (express or implied)
and all other covenants in this Lease on the part of Landlord to be performed shall be binding upon
Landlord for so long as Landlord remains the owner of the Building of which the Premises form a
part, and shall, provided the Tenant is not in default of any term or condition hereof, be binding
upon any successors or assigns of the Landlord.

     38. PARKING

          Landlord and Tenant hereby acknowledge and agree that the parking plan for the Building is an
open parking arrangement. Other than as specifically set forth in this Lease, parking spaces shall
be unassigned and Landlord shall not be liable for any damage of any nature whatsoever to, or any
theft of, automobiles or other vehicles or the contents thereof, while in or about the Entire
Property. Nothing contained herein shall act to limit or prohibit Landlord from designating any or
all parking spaces for exclusive use by specific tenants of the Building or the Entire Property.

     39. BROKERAGE COMMISSIONS

          Landlord and Tenant represent and warrant, each to the other, that neither has had any
dealings, negotiations or consultations with respect to the Premises or this transaction with any
broker or finder, and that no broker or finder called the Premises to Tenant’s attention for lease
or took part in any dealings, negotiations or consultations with respect to the Premises of this
Lease. Each party hereby agrees to indemnify and save the other harmless from and against all
costs, fees (including, without limitation, attorney’s fees), expense, liabilities and claims
incurred or suffered by said party as a result of the representation and warranty contained in this
Paragraph being untrue or false.

 

 

     40. SIGNS AND BUILDING DIRECTORY

          Without the prior written approval of Landlord, which may be unreasonably withheld, Tenant
shall not permit the painting or display of any signs, placards, lettering or advertising material
of any kind on or near the exterior of the Demised Premises or the Building. With Landlord’s prior
approval, which shall not be unreasonably withheld, Tenant may display Tenant’s name on or near the
entrance to the Demised Premises in a manner and location prescribed by Landlord. Landlord will
install a directory for the Building in a prominent location on the first floor of the Building.
Tenant shall have the right to have its name and that of its affiliate companies occupying the
premises (not exceeding three in the aggregate) listed in said directory. Landlord reserves all
rights to signage on the exterior of the Building and may at its sole option allow Tenant or any
tenant to utilize such signage at additional cost and subject to such conditions as Landlord may
require in its sole and absolute discretion. Notwithstanding the foregoing, Tenant may request
authority to install an exterior lighted sign on an exterior facade of the Building in a size and
location designated by Landlord. Tenant shall, as a condition precedent to the installation of such
exterior sign, obtain all required approvals, permits, licenses and insurance with respect to the
exterior sign. Tenant shall maintain property damage and liability insurance with respect to the
exterior sign in such amounts as shall be reasonably required by Landlord. The exact location,
materials, layout, color and content of the exterior sign shall be subject to review and prior
written approval by Landlord in its sole discretion. All costs in connection with the permitting,
approvals, installation and maintenance of such signage shall be paid by Tenant in advance with
evidence of such payment submitted to Landlord. Costs shall include any costs incurred by Landlord
in connection with review or approval of the plans for such exterior sign, but shall not exceed
FIVE HUNDRED ($500.00) DOLLARS. Tenant shall be liable for any damage to the sign or the Building
caused by the exterior sign, of any type, foreseeable or unforeseeable. Tenant shall pay Landlord
Additional Rent, and in addition to any other payments due under the Lease, the sum of ONE HUNDRED
($100.00) DOLLARS per month as an exterior signage lighting fee. Any rights granted Tenant
hereunder shall be a license only, personal to the Tenant and shall not be assignable or
transferable in any manner. In the event Landlord shall reasonably determine that any approved
exterior sign is not being properly maintained or creates a hazardous condition, Landlord may, upon
ten (10) days’ notice, terminate Tenant’s right to maintain the exterior sign. Landlord shall have
the right to establish or modify rules and regulations with respect to any exterior sign from time
to time or to reassign or relocate the exterior sign at any time, at Tenant’s sole cost and
expense.

     41. LANDLORD’S RIGHT TO RENAME THE BUILDING

          Landlord reserves the right at anytime to change the name of the Building.

 

 

     42. SEPARABILITY

          If any clause or provision of this Lease is illegal, invalid or unenforceable under present or
future laws effective during the term of this Lease, then and in that event, it is the intention of
the parties hereto that the remainder of this Lease shall not be affected thereby.

     43. LANDLORD’S LIABILITY

          Notwithstanding any provisions in this Lease to the contrary, Tenant agrees that Tenant shall
look solely to Landlord’s interest in the entire property in the event of any default or breach by
Landlord with respect to any of the terms and provisions of this Lease or any term implied in fact
or in law on the part of the Landlord to be performed or observed, and no other assets of Landlord
shall be subject to levy, execution, or other judicial process or award for the satisfaction of
Tenant’s claim. This provision shall inure to the Landlord, its successors in interest, its
assigns, including any mortgagee.

     44. ROOF RIGHTS

          Except as otherwise provided in this lease, Landlord shall have the exclusive right to use all
or any portion of the roof of the Building for any purpose.

     45. ACCESS

          Unless there shall have occurred an event of default, and except in the event of an emergency
situation as determined by Landlord in its sole discretion, Tenant shall have reasonable access to
the Premises during the term of this Lease.

     46. NO RESERVATION

          The submission of this Lease for examination does not constitute a reservation of or option
for the Demised Premises, and this Lease becomes effective only upon execution and delivery thereof
by Landlord.

     47. WAIVER. OF JURY TRIAL

          Both Landlord and Tenant agree to and do hereby waive trial by jury in any action, proceeding
or counterclaim brought by either of the parties hereto under or in connection with this lease.

     48. ADDITIONAL CONSTRUCTION; ADDITIONS TO CENTER

          A. Landlord shall have the exclusive right at any time and from time to time to use all or any
part of the roof and exterior walls of the demise premises for any purpose; to erect temporary
scaffolds and other aids to construction on the exterior of the demised premises, provided that
access to the demised premises shall not be completely denied; to enter the demised premises to
share the foundations and/or walls thereof and to erect scaffolding and/or protective barrier
around and about the demised premises (but not so as to preclude all entry thereto); and to
install, maintain, use, repair and replace pipes, ducts, conduits and wires leading

 

 

through the demised premises and serving other parts of the center in locations which will not
material interfere with Tenant’s use thereof. Tenant further agrees that Landlord may make any use
it desires of the side or rear walls of the demised premises, provided that there shall be no
encroachment upon the interior of the demised premises.

          B. Landlord hereby further reserves the right at any time and from time to time to make
alterations or additions to and build additional stories on, and to build adjoining to, the
building of which the demised premises are a part (including, but not limited to, construction of a
wholly or partially enclosed mall), and Tenant shall have no interest of any kind whatsoever in the
said additions or additional stories or adjoining buildings. Landlord also reserves the right to
construct other buildings or improvements in the center at any time and from time to time and to
make alterations thereof or additions thereto and to build additional stories on such building or
buildings and to build adjoining the same and to construct double-deck, elevated or subterranean
parking facilities.

          C. Landlord may from time to time add property to or withdraw property from the center. Any
property so added shall thereafter be subject to the terms of this Lease and shall be included in
the term “Entire Property” as used in this Lease, and any property so withdrawn by Landlord shall
thereafter not be subject to the terms of this Lease and shall be excluded from the term “Entire
Property” as used in this Lease; provided, however, that no such property shall be deemed added to
or withdrawn from the Entire Property, unless such addition or withdrawal is designated in writing
by Landlord.

          D. Landlord shall not be liable in any case for any inconvenience, disturbance, loss of
business or any other annoyance arising from any exercise of any or all of the rights of Landlord
in this paragraph.

     49. ACCORD AND SATISFACTION

          No payments by Tenant or receipt by Landlord of a lesser amount than any payment of rent
herein stipulated shall be deemed to be other than on account of the earliest stipulated rent, nor
shall any endorsement or statement on any check or any letter accompanying any check or payment as
rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord’s right to recover the balance of such rent or pursue another remedy provided
for in this Lease or available at law or in equity.

     50. LEASE YEAR

          The words “Lease Year” as used herein shall mean the first twelve full calendar months of the
term following the Rent Commencement Date and each succeeding twelve-month period, except that if
the terms of this Lease shall commence on a day other than the first day of a calendar month, the
period between such commencement date and the first day of the next following calendar month shall
be included with the first twelve full calendar months to constitute the first Lease Year
hereunder.

 

 

     51. TENANT’S JOINDER IN EASEMENTS, DEDICATIONS AND PLATS

          Provided that Tenant’s joinder is required under applicable law to make same effective, Tenant
shall from time to time, upon request from Landlord, join in a plat or plats of the Premises, and
join the granting of such utility easement or road dedications as may be reasonably necessary to
serve the Premises. Tenant’s joinder in any of the foregoing is on condition that there is no
obligation or expense imposed upon Tenant by reason thereof, except as specifically set forth
herein, and that any such plat or easement will not unreasonably interfere with the ingress and
egress, quiet enjoyment, exposure or visibility of the Premises.

     52. MORTGAGEE APPROVAL

          This Lease shall be specifically contingent upon any existing mortgagee having a mortgage
encumbering the property of which the Premises are a part, approving this Lease as to form and
content, including any purchase option or RoFR which may be granted herein. In the event said
mortgagee shall not approve this Lease or any part thereof, the parties may elect to terminate this
Lease in its entirety, or as mutually agreed between the parties, delete only such section as shall
be objectionable to said mortgagee. In which event, the objectionable provision shall be removed
and the Lease shall be in full force and effect as to the balance of the provisions contained
herein.

     53. PROPERTY ADDRESS

          The street address of the Entire Property and the Premises shall be determined by the City of
Dania or Fort Lauderdale and the United States Postal Service from time to time.

     54. RADON GAS

          Radon Gas is a naturally occurring radioactive gas that, when it has accumulated in a building
in sufficient quantities, may present health risks to persons who are 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 the county public
health unit.

     55. CONTINGENCY

          Landlord’s obligations hereunder shall be specifically contingent and conditioned at the sole
and exclusive option of Landlord upon Tenant submitting accurate and current financial statements
to Landlord for Landlord’s approval in its sole and absolute discretion. Such financial information
shall be supplemented as required by Landlord throughout the term of this Lease.

     56. TENANT’S I.D. NUMBER

          Tenant represents and warrants to Landlord that its taxpayer identification number is
65-0081720.

 

 

     57. ENTIRE AGREEMENT

          This Lease and the Exhibits and Riders, if any, attached hereto, and incorporated herein, set
forth the entire agreement between the parties concerning the Premises, and there are no other
agreements or understandings between them. This Lease and any Exhibits and Riders, if any, may not
be modified except by agreement in writing, executed by the Landlord and Tenant. The masculine (or
neuter) pronoun, singular number shall include the masculine, feminine and neuter genders and the
singular and plural number. This Lease shall be construed in accordance with, and governed by the
laws of the State of Florida.

          IN WITNESS WHEREOF, the respective parties have hereunto set their hands and seals and/or
affixed their corporate seals and caused these presents to be executed by their duly authorized
officers the date first written above.

(INTENTIONALLY LEFT BLANK)

 

 

SIGNED, SEALED AND DELIVERED

IN THE PRESENCE OF:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	EYW Holdings, Inc., a Florida Corporation	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Eleonora Lambertini
 

	 	 	 	By:
	 	/s/ Thomas P. Cooper
 

	 	 
	Name:
Eleonora Lambertini	 	 	 	Thomas P. Cooper, President	 	 
	                    (Print/Type)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Date: August 1, 2005	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	Gulfstream International Airlines, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Eleonora Lambertini

	 	 	 	By:
	 	/s/ Thomas L. Cooper	 	 
	 

	 	 	 	 	 	 	 	 
	Name:
Eleonora
Lambertini

	 	 	 	 	 	Thomas L. Cooper, CEO	 	 
	                    (Print/Type)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Date: August 1, 2005	 	 

 

 

FIRST AMENDMENT TO LEASE

     This First Amendment to Lease is made as of the 22nd of March, 2006, by and between Gulfstream
International Airlines, Inc., a Florida corporation (“Tenant”), having its principal place of
business at 3201 Griffin Road, 4th Floor, Dania, Florida 33312 and EYW HOLDINGS, INC.,
(“Landlord”), having its principal place of business at 3201 Griffin Road, 4th Floor,
Dania, Florida 33312.

W  I  T  N  E  S  S  E  T  H:

     WHEREAS, the Tenant and Landlord entered into and executed a Office Space Lease (the “Lease”)
dated August 1, 2005 for premises more particularly described as 4th Floor Office Space
located at 3201 Griffin Road, Dania, being in Florida; and

     WHEREAS, the parties wish to amend the amount of space leased and the amount of rent due under
the Lease during the Term;

     NOW, THEREFORE, in consideration of the foregoing, the mutual agreement of the parties hereto
and the sum of $10.00 and other good and valuable consideration paid by each party to the other,
receipt and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties
do hereby agree as follows:

	 	1.	 	The above recitals are true and correct as of the date
hereof;
	 
	 	2	 	The Landlord agrees to let and the Tenant agrees to
rent the additional space located on the second floor so that Tenant
will occupy the entire 2nd Floor of the building. The new
leased office space consists of an additional approximately 1,500 sq.
ft. +/-, to be used and occupied by the Tenant for general office use
and for no other purposes or uses whatsoever. Therefore the total
office space leased by tenant, after this addition, will be
approximately 8,400 sq. ft. +/-.
	 
	 	3.	 	The monthly Base Rent for the remainder of the first
year of the Lease shall be NINE THOUSAND AND ONE HUNDRED AND NO/XX
($9,100.00) DOLLARS together with applicable sales tax thereon,
commencing May 1, 2006 and continuing throughout the term hereof..
	 
	 	4.	 	In addition to the monthly rental set forth in
Paragraph 3 above, Tenant shall pay all other sums, including
additional rent, pursuant to the Lease and this Amendment, monthly or
quarterly as required by the Lease. Such additional rent currently
consists of Common Area Maintenance charges of $2,380.00 and utilities
of $1,120.00, thereby making the monthly payment $12,600.00. These
additional rent charges are subject to change in accordance with the
Lease.

 

 

	 	5.	 	Tenant acknowledges that it has been and continues in
possession and occupancy of the premises under the Lease and this
Amendment, is fully familiar with the premises and its condition, and
accepts the same in their current “as is/where is” condition without
any representations, warranties or covenants of any type, by Landlord.
	 
	 	6.	 	Waiver of jury trial. To the extent permitted by law,
the respective parties in this instrument agree to and do hereby waive
trial by jury in any action, proceeding, or counterclaim brought by
either of the parties against the other on any matters whatsoever
arising out of or in any way connected with this Lease, Tenant’s use or
occupancy of the unit, or any claim of damage resulting from any act or
omission of the parties or either of them in any way connected with
this Lease or the unit.
	 
	 	7.	 	Other than as modified and extended hereby, the Lease
shall remain in full force and effect through the First Extended Term
hereof.

     IN WITNESS WHEREOF, the parties have set their hands and seals this 22nd day of April, 2006.

	 	 	 	 	 
	 	LANDLORD:

EYW HOLDINGS, INC.

 	 
	 	By:  	/s/ Thomas P. Cooper
 	 
	 	 	Thomas P. Cooper, President 	 
	 	 	 	 
	 
	 	TENANT:

Gulfstream International Airlines, Inc.

 	 
	 	By:  	/s/ David Hackett
 	 
	 	 	David Hackett, Presidentexv10w21

 

Exhibit 10.21

LOAN AGREEMENT

Wachovia Bank, National Association

Jacksonville, Florida 32202

(Hereinafter referred to as the “Bank”)

Gulfstream International Airlines, Inc.

3201 Griffin Road, 4th Floor

Dania, Florida 33312

(Hereinafter referred to as “Borrower”)

This Loan Agreement (“Agreement”) is entered into August 15, 2006, by and between Bank and
Borrower.

This Agreement applies to the loan or loans (individually and collectively, the “Loan”) evidenced
by one or more promissory notes of even date herewith or other notes subject hereto, as modified
from time to time (whether one or more, the “Note”) and all Loan Documents. The terms “Loan
Documents” and “Obligations,” as used in this Agreement, are defined in the Note.

Relying upon the covenants, agreements, representations and warranties contained in this Agreement,
Bank is willing to extend credit to Borrower upon the terms and subject to the conditions set forth
herein, and Bank and Borrower agree as follows:

REPRESENTATIONS. Borrower represents that from the date of this Agreement and until final payment
in full of the Obligations: Accurate Information. All information now and hereafter furnished to
Bank is and will be true, correct and complete in all material respects. Any such information
relating to Borrower’s financial condition will accurately reflect Borrower’s financial condition
as of the date(s) thereof, (including all contingent liabilities of every type), and Borrower
further represents that its financial condition has not changed materially or adversely since the
date(s) of such documents. Authorization; Non-Contravention. The execution, delivery and
performance by Borrower and any guarantor, as applicable, of this Agreement and other Loan
Documents to which it is a party are within its power, have been duly authorized as may be required
and, if necessary, by making appropriate filings with any governmental agency or unit and are the
legal, binding, valid and enforceable obligations of Borrower and any guarantors; and do not (i)
contravene, or constitute (with or without the giving of notice or lapse of time or both) a
violation of any provision of applicable law, a violation of the organizational documents of
Borrower or any guarantor, or a default under any agreement, judgment, injunction, order, decree or
other instrument binding upon or affecting Borrower or any guarantor, (ii) result in the creation
or imposition of any lien (other than the lien(s) created by the Loan Documents) on any of
Borrower’s or any guarantor’s assets, or (iii) give cause for the acceleration of any obligations
of Borrower or any guarantor to any other creditor. Asset Ownership. Borrower has good and
marketable title to all of the properties and assets reflected on the balance sheets and financial
statements supplied Bank by Borrower, and all such properties and assets are free and clear of
mortgages, security deeds, pledges, liens, charges, and all other encumbrances, except as otherwise
disclosed to Bank by Borrower in writing and

 

 

approved by Bank (“Permitted Liens”). To Borrower’s knowledge, no default has occurred under any
Permitted Liens and no claims or interests adverse to Borrower’s present rights in its properties
and assets have arisen. Discharge of Liens and Taxes. Borrower has duly filed, paid and/or
discharged all taxes or other claims that may become a lien on any of its property or assets,
except to the extent that such items are being appropriately contested in good faith and an
adequate reserve for the payment thereof is being maintained. Sufficiency of Capital. Borrower is
not, and after consummation of this Agreement and after giving effect to all indebtedness incurred
and liens created by Borrower in connection with the Note and any other Loan Documents, will not
be, insolvent within the meaning of 11 U.S.C. § 101, as in effect from time to time. Compliance
with Laws. Borrower and any subsidiary and affiliate of Borrower and any guarantor are in
compliance in all material respects with all federal, state and local laws, rules and regulations
applicable to its properties, operations, business, and finances, including, without limitation,
any federal or state laws relating to liquor (including 18 U.S.C. § 3617, et seq.) or narcotics
(including 21 U.S.C. § 801, et seq.) and/or any commercial crimes; all applicable federal, state
and local laws and regulations intended to protect the environment; and the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), if applicable. None of Borrower, or any
subsidiary or affiliate of Borrower or any guarantor is a Sanctioned Person or has any of its
assets in a Sanctioned Country or does business in or with, or derives any of its operating income
from investments in or transactions with, Sanctioned Persons or Sanctioned Countries in violation
of economic sanctions administered by OFAC. The proceeds from the Loan will not be used to fund any
operations in, finance any investments or activities in, or make any payments to, a Sanctioned
Person or a Sanctioned Country. “OFAC” means the U.S. Department of the Treasury’s Office of
Foreign Assets Control. “Sanctioned Country” means a country subject to a sanctions program
identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/sanctions/, or as otherwise published from time to
time. “Sanctioned Person” means (i) a person named on the list of Specially Designated Nationals or
Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofac/sdn/,
or as otherwise published from time to time, or (ii) (A) an agency of the government of a
Sanctioned Country, (B) an organization controlled by a Sanctioned Country, or (C) a person
resident in a Sanctioned Country to the extent subject to a sanctions program administered by OFAC.
Organization and Authority. Each corporation, partnership or limited liability company Borrower
and/or guarantor, as applicable, is duly created, validly existing and in good standing under the
laws of the state of its organization, and has all powers, governmental licenses, authorizations,
consents and approvals required to operate its business as now conducted. Each corporation,
partnership or limited liability company Borrower and/or guarantor, as applicable, is duly
qualified, licensed and in good standing in each jurisdiction where qualification or licensing is
required by the nature of its business or the character and location of its property, business or
customers, and in which the failure to so qualify or be licensed, as the case may be, in the
aggregate, could have a material adverse effect on the business, financial position, results of
operations, properties or prospects of Borrower or any such guarantor. No Litigation. There are no
pending or threatened suits, claims or demands against Borrower or any guarantor that have not been
disclosed to Bank by Borrower in writing, and approved by Bank. Indemnity. Borrower will indemnify
Bank and its affiliates from and against any losses, liabilities, claims, damages, penalties or
fines imposed upon, asserted or assessed against or incurred by Bank arising out of the inaccuracy
or breach of any of the representations contained in this Agreement or any other Loan Documents.

 

 

AFFIRMATIVE COVENANTS. Borrower agrees that from the date hereof and until final payment in full of
the Obligations, unless Bank shall otherwise consent in writing, Borrower will: Access to Books and
Records. Allow Bank, or its agents, during normal business hours, access to the books, records and
such other documents of Borrower as Bank shall reasonably require, and allow Bank, at Borrower’s
expense, to inspect, audit and examine the same and to make extracts therefrom and to make copies
thereof. Business Continuity. Conduct its business in substantially the same manner and locations
as such business is now and has previously been conducted. Certificate of Full Compliance From
Accountant Deliver to Bank, with the financial statements required herein, a certification by
Borrower’s independent certified public accountant that Borrower is in full compliance with the
Loan Documents. Compliance with Other Agreements. Comply with all terms and conditions contained in
this Agreement, and any other Loan Documents, and swap agreements; if applicable, as defined in the
11 U.S.C. § 101, as in effect from time to time. Estoppel Certificate. Furnish, within 15 days
after request by Bank, a written statement duly acknowledged of the amount due under the Loan and
whether offsets or defenses exist against the Obligations. Insurance. Maintain adequate insurance
coverage with respect to its properties and business against loss or damage of the kinds and in the
amounts customarily insured against by companies of established reputation engaged in the same or
similar businesses including, without limitation, commercial general liability insurance, workers
compensation insurance, and business interruption insurance; all acquired in such amounts and from
such companies as Bank may reasonably require. Maintain Properties. Maintain, preserve and keep its
property in good repair, working order and condition, making all replacements, additions and
improvements thereto necessary for the proper conduct of its business, unless prohibited by the
Loan Documents. Notice of Default and Other Notices. (a) Notice of Default. Furnish to Bank
immediately upon becoming aware of the existence of any condition or event which constitutes a
Default (as defined in the Loan Documents) or any event which, upon the giving of notice or lapse
of time or both, may become a Default, written notice specifying the nature and period of existence
thereof and the action which Borrower is taking or proposes to take with respect thereto. (b) Other
Notices. Promptly notify Bank in writing of (i) any material adverse change in its financial
condition or its business; (ii) any default under any material agreement, contract or other
instrument to which it is a party or by which any or its properties are bound, or any acceleration
of the maturity of any indebtedness owing by Borrower; (iii) any material adverse claim against or
affecting Borrower or any part of its properties; (iv) the commencement of, and any material
determination in, any litigation with any third party or any proceeding before any governmental
agency or unit affecting Borrower; and (v) at least 30 days prior thereto, any change in Borrower’s
name or address as shown above, and/or any change in Borrower’s structure. Other Financial
Information. Deliver promptly such other information regarding the operation, business affairs, and
financial condition of Borrower which Bank may reasonably request. Payment of Debts. Pay and
discharge when due, and before subject to penalty or further charge, and otherwise satisfy before
maturity or delinquency, all obligations, debts, taxes, and liabilities of whatever nature or
amount, except those which Borrower in good faith disputes. Reports and Proxies. Deliver to Bank,
promptly, a copy of all financial statements, reports, notices, and proxy statements, sent by
Borrower to stockholders, and all regular or periodic reports required to be filed by Borrower with
any governmental agency or authority.

NEGATIVE COVENANTS. Borrower agrees that from the date hereof and until final payment in full of
the Obligations, unless Bank shall otherwise consent in writing, Borrower will not:

 

 

Change of Control. Make or suffer a change of ownership that effectively changes control of
Borrower from current ownership. Default on Other Contracts or Obligations. Default on any material
contract with or obligation when due to a third party or default in the performance of any
obligation to a third party incurred for money borrowed. Government Intervention. Permit the
assertion or making of any seizure, vesting or intervention by or under authority of any
governmental entity, as a result of which the management of Borrower or any guarantor is displaced
of its authority in the conduct of its respective business or such business is curtailed or
materially impaired. Judgment Entered. Permit the entry of any monetary judgment or the assessment
against, the filing of any tax lien against, or the issuance of any writ of garnishment or
attachment against any property of or debts due. Retire or Repurchase Capital Stock. Retire or
otherwise acquire any of its capital stock.

ANNUAL FINANCIAL STATEMENTS. Borrower shall deliver to Bank, within 120 days after the close of
each fiscal year, audited financial statements reflecting its operations during such fiscal year,
including, without limitation, a balance sheet, profit and loss statement and statement of cash
flows, with supporting schedules and in reasonable detail, prepared in conformity with generally
accepted accounting principles, applied on a basis consistent with that of the preceding
year. If audited statements are required, all such statements shall be examined by an independent
certified public accountant acceptable to Bank. The opinion of such independent certified public
accountant shall not be acceptable to Bank if qualified due to any limitations in scope imposed by
Borrower or any other person or entity. Any other qualification of the opinion by the accountant
shall render the acceptability of the financial statements subject to Bank’s approval.

TAX RETURNS. Borrower shall deliver to Bank, within 30 days of filing, complete copies of federal
and state tax returns, as applicable, together with all schedules thereto, each of which shall be
signed and certified by Borrower to be true and complete copies of such returns. In the event an
extension is filed, Borrower shall deliver a copy of the extension within 30 days of filing.

FINANCIAL COVENANTS. Borrower agrees to the following provisions from the date hereof until final
payment in full of the Obligations, unless Bank shall otherwise consent in writing, using the
financial information for Borrower, its subsidiaries, affiliates and its holding or parent company,
as applicable: Funded Debt to EBITDA Ratio. Borrower shall, at all times, maintain a Funded Debt to
EBITDA Ratio of not more than 3.00 to 1.00. “Funded Debt to EBITDA Ratio” shall mean the sum of all
Funded Debt divided by the sum of earnings before interest, taxes, depreciation and amortization.
“Funded Debt” shall mean, as applied to any person or entity, the sum of all indebtedness for
borrowed money, (including, without limitation, capital lease and synthetic lease obligations,
subordinated debt (including debt subordinated to the Bank), and unreimbursed drawings under
letters of credit), or any other monetary obligation evidenced by a note, bond, debenture or other
agreement or similar instrument of that person or entity. Deposit Relationship. Borrower shall
maintain its primary depository account with Bank.

CONDITIONS PRECEDENT. The obligations of Bank to make the loan and any advances pursuant to this
Agreement are subject to the following conditions precedent: Additional Documents. Receipt by Bank
of such additional supporting documents as Bank or its counsel may reasonably request.

 

 

IN WITNESS WHEREOF, Borrower and Bank, on the day and year first written above, have caused this
Agreement to be executed under seal.

	 	 	 	 	 
	 	Gulfstream International Airlines, Inc. 

 	 
	 	By:  	/s/ Thomas P. Cooper
 	 
	 	 	Thomas P. Cooper, Senior Vice President of 	 
	 	 	Legal Affairs and Corporate Secretary 	 
	 
	 	Wachovia Bank, National Association

 	 
	 	By:  	/s/ Aly Heimovics
 	 
	 	 	Aly Heimovics, Vice President 	 
	 	 	 	 

 

 

	 	 	 	 	 

UNCONDITIONAL GUARANTY

August 15, 2006

Gulfstream International Airlines, Inc.

3201 Griffin Road, 4th Floor

Dania, Florida 33312

(Hereinafter referred to as “Borrower”)

G-Air Holdings Corp.

1815 Griffin Road, Suite 400

Dania, Florida 33304

(Hereinafter referred to as “Guarantor”)

Wachovia Bank, National Association

Jacksonville, Florida 32202

(Hereinafter referred to as “Bank”)

To induce Bank to make, extend or renew loans, advances, credit, or other financial accommodations
to or for the benefit of Borrower, which are and will be to the direct interest and advantage of
the Guarantor, and in consideration of loans, advances, credit, or other financial accommodations
made, extended or renewed to or for the benefit of Borrower, which are and will be to the direct
interest and advantage of the Guarantor, Guarantor hereby absolutely, irrevocably and
unconditionally guarantees to Bank and its successors, assigns and affiliates the timely payment
and performance of all liabilities and obligations of Borrower to Bank and its affiliates,
including, but not limited to, all obligations under any notes, loan agreements, security
agreements, letters of credit, instruments, accounts receivable, contracts, drafts, leases, chattel
paper, indemnities, acceptances, repurchase agreements, overdrafts, and the Loan Documents, as
defined below, and all obligations of Borrower to Bank or any of its affiliates under any swap
agreement (as defined in 11 U.S.C. § 101, as in effect from time to time), however and whenever
incurred or evidenced, whether primary, secondary, direct, indirect, absolute, contingent, due or
to become due, now existing or hereafter contracted or acquired, and all modifications, extensions
and renewals thereof, (collectively, the “Guaranteed Obligations”).

Guarantor further covenants and agrees:

GUARANTOR’S LIABILITY. This Guaranty is a continuing and unconditional guaranty of payment and
performance and not of collection. The parties to this Guaranty are jointly and severally obligated
hereunder. This Guaranty does not impose any obligation on Bank to extend or continue to extend
credit or otherwise deal with Borrower at any subsequent time. This Guaranty shall continue to be
effective or be reinstated, as the case may be, if at any time any payment of the Guaranteed
Obligations is rescinded, avoided or for any other reason must be returned by Bank, and the
returned payment shall remain payable as part of the Guaranteed Obligations, all as though such
payment had not been made. Except to the extent the provisions of this Guaranty give Bank
additional rights, this Guaranty shall not be deemed to supersede or replace any other guaranties
given to Bank by Guarantor; and the obligations guaranteed hereby

 

 

shall be in addition to any other obligations guaranteed by Guarantor pursuant to any other
agreement of guaranty given to Bank and other guaranties of the Guaranteed Obligations.

TERMINATION OF GUARANTY. Guarantor may terminate this Guaranty only by written notice, delivered
personally to or received by certified or registered United States Mail by an authorized officer of
Bank at the address for notices provided herein. Such termination shall be effective only with
respect to Guaranteed Obligations arising more than 15 days after the date such written notice is
received by said Bank officer. Such termination shall not be effective with respect to Guaranteed
Obligations (including any subsequent extensions, modifications or compromises of the Guaranteed
Obligations) then existing, or Guaranteed Obligations arising subsequent to receipt by Bank of said
notice if such Guaranteed Obligations are a result of Bank’s obligation to make advances pursuant
to a commitment, or are based on Borrower’s obligations to make payments pursuant to any swap
agreement (as defined in 11 U.S.C. § 101, as in effect from time to time), entered into prior to
expiration of the 15 day notice period, or are a result of advances which are necessary for Bank to
protect its collateral or otherwise preserve its interests. Termination of this Guaranty by any
single Guarantor will not affect the existing and continuing obligations of any other Guarantor
hereunder

CONSENT TO MODIFICATIONS. Guarantor consents and agrees that Bank (and, with respect to swap
obligations, its affiliates) may from time to time, in its sole discretion, without affecting,
impairing, lessening or releasing the obligations of Guarantor hereunder: (a) extend or modify the
time, manner, place or terms of payment or performance and/or otherwise change or modify the credit
terms of the Guaranteed Obligations; (b) increase, renew, or enter into a novation of the
Guaranteed Obligations; (c) waive or consent to the departure from terms of the Guaranteed
Obligations; (d) permit any change in the business or other dealings and relations of Borrower or
any other guarantor with Bank; (e) proceed against, exchange, release, realize upon, or otherwise
deal with in any manner any collateral that is or may be held by Bank in connection with the
Guaranteed Obligations or any liabilities or obligations of Guarantor; and (f) proceed against,
settle, release, or compromise with Borrower, any insurance carrier, or any other person or entity
liable as to any part of the Guaranteed Obligations, and/or subordinate the payment of any part of
the Guaranteed Obligations to the payment of any other obligations, which may at any time be due or
owing to Bank; all in such manner and upon such terms as Bank may deem appropriate, and without
notice to or further consent from Guarantor. No invalidity, irregularity, discharge or
unenforceability of, or action or omission by Bank relating to any part of the Guaranteed
Obligations or any security therefor shall affect or impair this Guaranty.

WAIVERS AND ACKNOWLEDGMENTS. Guarantor waives and releases the following rights, demands, and
defenses Guarantor may have with respect to Bank (and, with respect to swap obligations, its
affiliates) and collection of the Guaranteed Obligations: (a) promptness and diligence in
collection of any of the Guaranteed Obligations from Borrower or any other person liable thereon,
and in foreclosure of any security interest and sale of any property serving as collateral for the
Guaranteed Obligations; (b) any law or statute that requires that Bank (and, with respect to swap
obligations, its affiliates) make demand upon, assert claims against, or collect from Borrower or
other persons or entities, foreclose any security interest, sell collateral, exhaust any remedies,
or take any other action against Borrower or other persons or entities prior to making demand upon,
collecting from or taking action against Guarantor with respect to the Guaranteed Obligations,
including any such rights Guarantor might otherwise have had under

 

 

Va. Code §§ 49-25 and 49-26, et seq., N.C.G.S. §§ 26-7, et seq., Tenn. Code Ann. §
47-12-101, O.C.G.A. § 10-7-24, Mississippi Code Ann. Section 87-5-1, and any successor statute and
any other applicable law; (c) any law or statute that requires that Borrower or any other person be
joined in, notified of or made part of any action against Guarantor; (d) that Bank or its
affiliates preserve, insure or perfect any security interest in collateral or sell or dispose of
collateral in a particular manner or at a particular time, provided that Bank’s obligation to
dispose of Collateral in a commercially reasonable manner is not waived hereby; (e) notice of
extensions, modifications, renewals, or novations of the Guaranteed Obligations, of any new
transactions or other relationships between Bank, Borrower and/or any guarantor, and of changes in
the financial condition of, ownership of, or business structure of Borrower or any other guarantor;
(f) presentment, protest, notice of dishonor, notice of default, demand for payment, notice of
intention to accelerate maturity, notice of acceleration of maturity, notice of sale, and all other
notices of any kind whatsoever to which Guarantor may be entitled; (g) the right to assert against
Bank or its affiliates any defense (legal or equitable), set-off, counterclaim, or claim that
Guarantor may have at any time against Borrower or any other party liable to Bank or its
affiliates; (h) all defenses relating to invalidity, insufficiency, unenforceability, enforcement,
release or impairment of Bank or its affiliates’ lien on any collateral, of the Loan Documents, or
of any other guaranties held by Bank; (i) any right to which Guarantor is or may become entitled to
be subrogated to Bank or its affiliates’ rights against Borrower or to seek contribution,
reimbursement, indemnification, payment or the like, or participation in any claim, right or remedy
of Bank or its affiliates against Borrower or any security which Bank or its affiliates now has or
hereafter acquires, until such time as the Guaranteed Obligations have been fully satisfied beyond
the expiration of any applicable preference period: (j) any claim or defense that acceleration of
maturity of the Guaranteed Obligations is stayed against Guarantor because of the stay of assertion
or of acceleration of claims against any other person or entity for any reason including the
bankruptcy or insolvency of that person or entity; and (k) the right to marshalling of Borrower’s
assets or the benefit of any exemption claimed by Guarantor. Guarantor acknowledges and represents
that Guarantor has relied upon Guarantor’s own due diligence in making an independent appraisal of
Borrower, Borrower’s business affairs and financial condition, and any collateral; Guarantor will
continue to be responsible for making an independent appraisal of such matters; and Guarantor has
not relied upon Bank or its affiliates for information regarding Borrower or any collateral.

FINANCIAL CONDITION. Guarantor warrants, represents and covenants to Bank and its affiliates that
on and after the date hereof: (a) the fair saleable value of Guarantor’s assets exceeds its
liabilities, Guarantor is meeting its current liabilities as they mature, and Guarantor is and
shall remain solvent; (b) all financial statements of Guarantor furnished to Bank are correct and
accurately reflect the financial condition of Guarantor as of the respective dates thereof; (c)
since the date of such financial statements, there has not occurred a material adverse change in
the financial condition of Guarantor; (d) there are not now pending any court or administrative
proceedings or undischarged judgments against Guarantor, no federal or state tax liens have been
filed or threatened against Guarantor, and Guarantor is not in default or claimed default under any
agreement; and (e) at such reasonable times as Bank requests, Guarantor will furnish Bank and its
affiliates with such other financial information as Bank and its affiliates may reasonably request.

 

 

INTEREST AND APPLICATION OF PAYMENTS. Regardless of any other provision of this Guaranty or other
Loan Documents, if for any reason the effective interest on any of the Guaranteed Obligations
should exceed the maximum lawful interest, the effective interest shall be deemed reduced to and
shall be such maximum lawful interest, and any sums of interest which have been collected in excess
of such maximum lawful interest shall be applied as a credit against the unpaid principal balance
of the Guaranteed Obligations. Monies received from any source by Bank or its affiliates for
application toward payment of the Guaranteed Obligations may be applied to such Guaranteed
Obligations in any manner or order deemed appropriate by Bank and its affiliates.

DEFAULT. If any of the following events occur, a default (“Default”) under this Guaranty shall
exist: (a) failure of timely payment or performance of the Guaranteed Obligations or a default
under any Loan Document; (b) a breach of any agreement or representation contained or referred to
in the Guaranty, or any of the Loan Documents, or contained in any other contract or agreement of
Guarantor with Bank or its affiliates, whether now existing or hereafter arising; (c) the death of,
appointment of a guardian for, dissolution of, termination of existence of, loss of good standing
status by, appointment of a receiver for, assignment for the benefit of creditors of, or the
commencement of any insolvency or bankruptcy proceeding by or against Guarantor or any general
partner of or the holder(s) of the majority ownership interests of Guarantor; and/or (d) Bank
determines in good faith, in its sole discretion, that the prospects for payment or performance of
the Guaranteed Obligations are impaired or a material adverse change has occurred in the business
or prospects of Borrower or Guarantor, financial or otherwise.

If a Default occurs, the Guaranteed Obligations shall be due immediately and payable without
notice, other than Guaranteed Obligations under any swap agreements (as defined in 11 U.S.C. § 101,
as in effect from time to time) with Bank or its affiliates, which shall be due in accordance with
and governed by the provisions of said swap agreements, and, Bank and its affiliates may exercise
any rights and remedies as provided in this Guaranty and other Loan Documents, or as provided at
law or equity. Guarantor shall pay interest on the Guaranteed Obligations from such Default at the
highest rate of interest charged on any of the Guaranteed Obligations.

ATTORNEYS’ FEES AND OTHER COSTS OF COLLECTION. Guarantor shall pay all of Bank’s and its
affiliates’ reasonable expenses incurred to enforce or collect any of the Guaranteed Obligations,
including, without limitation, reasonable arbitration, paralegals’, attorneys’ and experts’ fees
and expenses, whether incurred without the commencement of a suit, in any suit, arbitration, or
administrative proceeding, or in any appellate or bankruptcy proceeding.

SUBORDINATION OF OTHER DEBTS. Guarantor agrees: (a) to subordinate the obligations now or hereafter
owed by Borrower to Guarantor (“Subordinated Debt”) to any and all obligations of Borrower to Bank
or its affiliates now or hereafter existing while this Guaranty is in effect, provided however that
Guarantor may receive regularly scheduled principal and interest payments on the Subordinated Debt
so long as (i) all sums due and payable by Borrower to Bank and its affiliates have been paid in
full on or prior to such date, and (ii) no event or condition which constitutes or which with
notice or the lapse or time would constitute an event of default with respect to the Guaranteed
Obligations shall be continuing on or as of the payment date; (b) Guarantor will either place a
legend indicating such subordination on every note, ledger

 

 

page or other document evidencing any part of the Subordinated Debt or deliver such documents to
Bank; and (c) except as permitted by this paragraph, Guarantor will not request or accept payment
of or any security for any part of the Subordinated Debt, and any proceeds of the Subordinated Debt
paid to Guarantor, through error or otherwise, shall immediately be forwarded to Bank by Guarantor,
properly endorsed to the order of Bank, to apply to the Guaranteed Obligations.

MISCELLANEOUS. Assignment. This Guaranty and other Loan Documents shall inure to the benefit of and
be binding upon the parties and their respective heirs, legal representatives, successors and
assigns. Bank’s interests in and rights under this Guaranty and other Loan Documents are freely
assignable, in whole or in part, by Bank. Any assignment shall not release Guarantor from the
Guaranteed Obligations. Organization; Powers. Guarantor (i) is (a) an adult individual and is
sui juris, or (b) a corporation, general partnership, limited partnership, limited
liability company or other legal entity (as indicated below), duly organized, validly existing and
in good standing under the laws of its state of organization, and is authorized to do business in
each other jurisdiction wherein its ownership of property or conduct of business legally requires
such organization, (ii) has the power and authority to own its properties and assets and to carry
on its business as now being conducted and as now contemplated; and (iii) has the power and
authority to execute, deliver and perform, and by all necessary action has authorized the
execution, delivery and performance of, all of its obligations under this Guaranty and any other
Loan Document to which it is a party. Applicable Law; Conflict Between Documents. This Guaranty
shall be governed by and construed under the laws of the state named in Bank’s address shown above
without regard to that state’s conflict of laws principles. If the terms of this Guaranty should
conflict with the terms of any commitment letter that survives closing, the terms of this Guaranty
shall control. Guarantor’s Accounts. Except as prohibited by law, Guarantor grants Bank and its
affiliates a security interest in all of Guarantor’s accounts with Bank and its affiliates.
Jurisdiction. Guarantor irrevocably agrees to non-exclusive personal jurisdiction in the state
named in Bank’s address shown above. Severability. If any provision of this Guaranty or of the
other Loan Documents shall be prohibited or invalid under applicable law, such provision shall be
ineffective but only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Guaranty or other Loan Documents.
Notices. Any notices to Guarantor shall be sufficiently given if in writing and mailed or delivered
to Guarantor’s address shown above or such other address as provided hereunder, and to Bank, if in
writing and mailed or delivered to Wachovia Bank, National Association, Mail Code VA7628, P.O. Box
13327, Roanoke, VA 24040 or Wachovia Bank, National Association, Mail Code VA7628, 10 South
Jefferson Street, Roanoke, VA 24011 or such other address as Bank may specify in writing from time
to time. Notices to Bank must include the mail code. In the event that Guarantor changes
Guarantor’s address at any time prior to the date the Guaranteed Obligations are paid in full,
Guarantor agrees to promptly give written notice of said change of address to Bank by registered or
certified mail, return receipt requested, all charges prepaid. Plural; Captions. All references in
the Loan Documents to borrower, guarantor, person, document or other nouns of reference mean both
the singular and plural form, as the case may be, and the term “person” shall mean any individual
person or entity. The captions contained in the Loan Documents are inserted for convenience only
and shall not affect the meaning or interpretation of the Loan Documents. Binding Contract.
Guarantor by execution of and Bank by acceptance of this Guaranty agree that each party is bound to
all terms and provisions of this Guaranty. Amendments, Waivers and Remedies. No waivers,

 

 

amendments or modifications of this Guaranty and other Loan Documents shall be valid unless in
writing and signed by an officer of Bank. No waiver by Bank or its affiliates of any Default shall
operate as a waiver of any other Default or the same Default on a future occasion. Neither the
failure nor any delay on the part of Bank or its affiliates in exercising any right, power, or
privilege granted pursuant to this Guaranty and other Loan Documents shall operate as a waiver
thereof, nor shall a single or partial exercise thereof preclude any other or further exercise or
the exercise of any other right, power or privilege. All remedies available to Bank or its
affiliates with respect to this Guaranty and other Loan Documents and remedies available at law or
in equity shall be cumulative and may be pursued concurrently or successively. Partnerships. If
Guarantor is a partnership, the obligations, liabilities and agreements on the part of Guarantor
shall remain in full force and effect and fully applicable notwithstanding any changes in the
individuals comprising the partnership. The term “Guarantor” includes any altered or successive
partnerships, and predecessor partnership(s) and the partners shall not be released from any
obligations or liabilities hereunder. Loan Documents. The term “Loan Documents” refers to all
documents executed in connection with or related to the Guaranteed Obligations and may include,
without limitation, commitment letters that survive closing, loan agreements, other guaranty
agreements, security agreements, instruments, financing statements, mortgages, deeds of trust,
deeds to secure debt, letters of credit and any amendments or supplements (excluding swap
agreements as defined in 11 U.S.C. § 101, as in effect from time to time). LIMITATION ON LIABILITY;
WAIVER OF PUNITIVE DAMAGES. EACH OF THE PARTIES HERETO, INCLUDING BANK BY ACCEPTANCE HEREOF, AGREES
THAT IN ANY JUDICIAL, MEDIATION OR ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY BETWEEN OR
AMONG THEM THAT MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE LOAN DOCUMENTS
OR ANY OTHER AGREEMENT OR DOCUMENT BETWEEN OR AMONG THEM OR THE OBLIGATIONS EVIDENCED HEREBY OR
RELATED HERETO, IN NO EVENT SHALL ANY PARTY HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1)
INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES. EACH OF THE
PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY HAVE
OR WHICH MAY ARISE IN THE FUTURE IN CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR CONTROVERSY,
WHETHER THE SAME IS RESOLVED BY ARBITRATION, MEDIATION, JUDICIALLY OR OTHERWISE. FINAL AGREEMENT.
This Agreement and the other Loan Documents represent the final agreement between the parties and
may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the
parties. There are no unwritten oral agreements between the parties.

FINANCIAL AND OTHER INFORMATION. Guarantor shall deliver to Bank such information as Bank may
reasonably request from time to time, including without limitation, financial statements and
information pertaining to Guarantor’s financial condition. Such information shall be true,
complete, and accurate.

NEGATIVE COVENANTS. Guarantor agrees that from the date hereof and until final payment in full of
the Guaranteed Obligations, unless Bank shall otherwise consent in writing, Guarantor will not:
Default on Other Contracts or Obligations. Default on any material contract with or obligation when
due to a third party or default in the performance of any obligation to a third party incurred for
money borrowed. Government Intervention. Permit the assertion or making

 

 

of any seizure, vesting or intervention by or under authority of any governmental entity, as a
result of which the management of Guarantor or any guarantor is displaced of its authority in the
conduct of its respective business or such business is curtailed or materially impaired. Judgment
Entered. Permit the entry of any monetary judgment or the assessment against, the filing of any tax
lien against, or the issuance of any writ of garnishment or attachment against any property of or
debts due. Retire or Repurchase Capital Stock. Retire or otherwise acquire any of its capital
stock.

WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF GUARANTOR BY EXECUTION
HEREOF AND BANK BY ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS GUARANTY, THE LOAN DOCUMENTS OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED
IN CONNECTION WITH THIS GUARANTY, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY WITH RESPECT HERETO. THIS PROVISION IS A MATERIAL
INDUCEMENT TO BANK TO ACCEPT THIS GUARANTY. EACH OF THE PARTIES AGREES THAT THE TERMS HEREOF SHALL
SUPERSEDE AND REPLACE ANY PRIOR AGREEMENT RELATED TO ARBITRATION OF DISPUTES BETWEEN THE PARTIES
CONTAINED IN ANY LOAN DOCUMENT OR ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE EXECUTED IN CONNECTION
WITH RELATED TO OR BEING REPLACED, SUPPLEMENTED, EXTENDED OR MODIFIED BY, THIS GUARANTY.

IN WITNESS WHEREOF, Guarantor, on the day and year first written above, has caused this
Unconditional Guaranty to be executed under seal.

	 	 	 	 	 	 	 	 	 
	 	 	G-Air Holdings Corp.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	[signature]
	 	(SEAL)	 	 
	 

	 	Name:
	 	 

Thomas F. Cooper
	 	 	 	 
	 

	 	Title:
	 	Corporate Secretary	 	 	 	 

Tracking #: 120212rke

CAT — Deal # 712612 Facility ID 509212

 

 

PROMISSORY NOTE

$750,000.00

August 15, 2006

Gulfstream International Airlines, Inc.

3201 Griffin Road, 4th Floor

Dania, Florida 33312

(Hereinafter referred to as “Borrower”)

Wachovia Bank, National Association

Jacksonville, Florida 32202

(Hereinafter referred to as “Bank”)

Borrower promises to pay to the order of Bank, in lawful money of the United States of America, at
its office indicated above or wherever else Bank may specify, the sum of Seven Hundred Fifty
Thousand and No/100 Dollars ($750,000.00) or such sum as may be advanced and outstanding from time
to time, with interest on the unpaid principal balance at the rate and on the terms provided in
this Promissory Note (including all renewals, extensions or modifications hereof, this “Note”).

LOAN AGREEMENT. This Note is subject to the provisions of that certain Loan Agreement between Bank
and Borrower of even date herewith, as modified from time to time.

LINE OF CREDIT. Borrower may borrow, repay and reborrow, and, upon the request of Borrower, Bank
shall advance and readvance under this Note from time to time (each an “Advance” and together the
“Advances”), so long as the total principal balance outstanding under this Note at any one time
does not exceed the principal amount stated on the face of this Note, subject to the limitations
described in any loan agreement to which this Note is subject. Bank’s obligation to make Advances
under this Note shall terminate if a demand for payment is made under this Note or if a Default (as
defined in the other Loan Documents) under any Loan Document occurs or in any event, on July 31,
2007 unless renewed or extended by Bank in writing upon such terms then satisfactory to Bank. As of
the date of each proposed Advance, Borrower shall be deemed to represent that each representation
made in the Loan Documents is true as of such date. 30-Day Payout. During the term of the Note,
Borrower agrees to pay down the outstanding balance to a maximum of $100.00 for 30 consecutive days
annually.

If Borrower subscribes to Bank’s cash management services and such services are applicable to this
line of credit, the terms of such service shall control the manner in which funds are transferred
between the applicable demand deposit account and the line of credit for credit or debit to the
line of credit.

USE OF PROCEEDS. Borrower shall use the proceeds of the loan(s) evidenced by this Note
for the commercial purposes of Borrower, as follows: for short term and seasonal working capital
needs.

 

 

SECURITY. Borrower has granted Bank a security interest in the collateral described in the Loan
Documents, including, but not limited to, personal property collateral described in that certain
Security Agreement of even date herewith.

INTEREST RATE. Interest shall accrue on the unpaid principal balance of this Note from the date
hereof at the LIBOR Market Index Rate plus 2.75%, as that rate may change from day to day in
accordance with changes in the LIBOR Market Index Rate (“Interest Rate”). “LIBOR Market Index
Rate”, for any day, means the rate for 1 month U.S. dollar deposits as reported on Telerate page
3750 as of 11:00 a.m., London time, on such day, or if such day is not a London business day, then
the immediately preceding London business day (or if not so reported, then as determined by Bank
from another recognized source or interbank quotation).

DEFAULT RATE. In addition to all other rights contained in this Note, if a default in the payment
of Obligations occurs, all outstanding Obligations, other than Obligations under any swap
agreements (as defined in 11 U.S.C. § 101, as in effect from time to time) between Borrower and
Bank or its affiliates, shall bear interest at the Interest Rate plus 3% (“Default Rate”). The
Default Rate shall also apply from demand until the Obligations or any judgment thereon is paid in
full.

INTEREST AND FEE(S) COMPUTATION (ACTUAL/360). Interest and fees, if any, shall be computed on the
basis of a 360-day year for the actual number of days in the applicable period (“Actual/360
Computation”). The Actual/360 Computation determines the annual effective interest yield by taking
the stated (nominal) rate for a year’s period and then dividing said rate by 360 to determine the
daily periodic rate to be applied for each day in the applicable period. Application of the
Actual/360 Computation produces an annualized effective rate exceeding the nominal rate.

REPAYMENT TERMS. This Note shall be due and payable in consecutive monthly payments of accrued
interest only, commencing on September 15, 2006, and continuing on the same day of each month
thereafter until fully paid. In any event, this Note shall be due and payable in full, including
all principal and accrued interest, on demand.

AUTOMATIC DEBIT OF CHECKING ACCOUNT FOR LOAN PAYMENT. Borrower authorizes Bank to debit demand
deposit account number 2000025631672 or any other account with Wachovia Bank: National Association
(067006432) designated in writing by Borrower, beginning September 15, 2006 for any payments due
under this Note. Borrower further certifies that Borrower holds legitimate ownership of this
account and preauthorizes this periodic debit as part of its right under said ownership.

APPLICATION OF PAYMENTS. Monies received by Bank from any source for application toward payment of
the Obligations shall be applied to accrued interest and then to principal. Upon the occurrence of
a default in the payment of the Obligations or a Default (as defined in the other Loan Documents)
under any other Loan Document, monies may be applied to the Obligations in any manner or order
deemed appropriate by Bank.

If any payment received by Bank under this Note or other Loan Documents is rescinded, avoided or
for any reason returned by Bank because of any adverse claim or threatened action, the

 

 

returned payment shall remain payable as an obligation of all persons liable under this Note or
other Loan Documents as though such payment had not been made.

DEFINITIONS. Loan Documents. The term “Loan Documents”, as used in this Note and the other Loan
Documents, refers to all documents executed in connection with or related to the loan evidenced by
this Note and any prior notes which evidence all or any portion of the loan evidenced by this Note,
and any letters of credit issued pursuant to any loan agreement to which this Note is subject, any
applications for such letters of credit and any other documents executed in connection therewith or
related thereto, and may include, without limitation, a commitment letter that survives closing, a
loan agreement, this Note, guaranty agreements, security agreements, security instruments,
financing statements, mortgage instruments, any renewals or modifications, whenever any of the
foregoing are executed, but does not include swap agreements (as defined in 11 U.S.C. § 101, as in
effect from time to time). Obligations. The term “Obligations”, as used in this Note and the other
Loan Documents, refers to any and all indebtedness and other obligations under this Note, all other
obligations under any other Loan Document(s), and all obligations under any swap agreements (as
defined in 11 U.S.C. § 101, as in effect from time to time) between Borrower and Bank, or its
affiliates, whenever executed. Certain Other Terms. All terms that are used but not otherwise
defined in any of the Loan Documents shall have the definitions provided in the Uniform Commercial
Code.

LATE CHARGE. If any payments are not timely made, Borrower shall also pay to Bank a late charge
equal to 5% of each payment past due for 10 or more days. This late charge shall not apply to
payments due at maturity or by acceleration hereof, unless such late payment is in an amount not
greater than the highest periodic payment due hereunder.

Acceptance by Bank of any late payment without an accompanying late charge shall not be deemed a
waiver of Bank’s right to collect such late charge or to collect a late charge for any subsequent
late payment received.

ATTORNEYS’ FEES AND OTHER COLLECTION COSTS. Borrower shall pay all of Bank’s reasonable expenses
actually incurred to enforce or collect any of the Obligations including, without limitation,
reasonable arbitration, paralegals’, attorneys’ and experts’ fees and expenses, whether incurred
without the commencement of a suit, in any trial, arbitration, or administrative proceeding, or in
any appellate or bankruptcy proceeding.

USURY. If at any time the effective interest rate under this Note would, but for this paragraph,
exceed the maximum lawful rate, the effective interest rate under this Note shall be the maximum
lawful rate, and any amount received by Bank in excess of such rate shall be applied to principal
and then to fees and expenses, or, if no such amounts are owing, returned to Borrower.

DEMAND NOTE. This is a demand Note and all Obligations hereunder shall become immediately due and
payable upon demand. In addition, the Obligations hereunder shall automatically become immediately
due and payable if Borrower or any guarantor or endorser of this Note commences or has commenced
against it a bankruptcy or insolvency proceeding.

 

 

REMEDIES. Upon the occurrence of a default in the payment of the Obligations or a Default (as
defined in the other Loan Documents) under any other Loan Document, Bank may at any time
thereafter, take the following actions: Bank Lien. Foreclose its security interest or lien against
Borrower’s accounts without notice. Cumulative. Exercise any rights and remedies as provided under
the Note and the other Loan Documents, or as provided by law or equity.

FINANCIAL AND OTHER INFORMATION. Borrower shall deliver to Bank such information as Bank may
reasonably request from time to time, including without limitation, financial statements and
information pertaining to Borrowers financial condition. Such information shall be true, complete,
and accurate.

WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of this Note and other Loan
Documents shall be valid unless in writing and signed by an officer of Bank. No waiver by Bank of
any Default (as defined in the other Loan Documents) shall operate as a waiver of any other Default
or the same Default on a future occasion. Neither the failure nor any delay on the part of Bank in
exercising any right, power, or remedy under this Note and other Loan Documents shall operate as a
waiver thereof, nor shall a single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or remedy.

Except to the extent otherwise provided by the Loan Documents or prohibited by law, each Borrower
and each other person liable under this Note waives presentment, protest, notice of dishonor,
notice of intention to accelerate maturity, notice of acceleration of maturity, notice of sale and
all other notices of any kind. Further, each agrees that Bank may (i) extend, modify or renew this
Note or make a novation of the loan evidenced by this Note, and/or (ii) grant releases, compromises
or indulgences with respect to any collateral securing this Note, or with respect to any Borrower
or other person liable under this Note or any other Loan Documents, all without notice to or
consent of each Borrower and other such person, and without affecting the liability of each
Borrower and other such person; provided, Bank may not extend, modify or renew this Note or make a
novation of the loan evidenced by this Note without the consent of the Borrower, or if there is
more than one Borrower, without the consent of at least one Borrower; and further provided, if
there is more than one Borrower, Bank may not enter into a modification of this Note which
increases the burdens of a Borrower without the consent of that Borrower.

MISCELLANEOUS PROVISIONS. Assignment. This Note and the other Loan Documents shall inure to the
benefit of and be binding upon the parties and their respective heirs, legal representatives,
successors and assigns. Bank’s interests in and rights under this Note and the other Loan Documents
are freely assignable, in whole or in part, by Bank. In addition, nothing in this Note or any of
the other Loan Documents shall prohibit Bank from pledging or assigning this Note or any of the
other Loan Documents or any interest therein to any Federal Reserve Bank. Borrower shall not assign
its rights and interest hereunder without the prior written consent of Bank, and any attempt by
Borrower to assign without Bank’s prior written consent is null and void. Any assignment shall not
release Borrower from the Obligations. Applicable Law; Conflict Between Documents. This Note and,
unless otherwise provided in any other Loan Document, the other Loan Documents shall be governed by
and construed under the laws of the state named in Bank’s address on the first page hereof without
regard to that state’s conflict of laws principles. If the terms of this Note should conflict with
the terms of any loan agreement or any commitment letter that survives closing, the terms of this
Note shall control.

 

 

Borrower’s Accounts. Except as prohibited by law, Borrower grants Bank a security interest in all
of Borrower’s accounts with Bank and any of its affiliates. Swap Agreements. All swap agreements
(as defined in 11 U.S.C. § 101, as in effect from time to time), if any, between Borrower and Bank
or its affiliates are independent agreements governed by the written provisions of said swap
agreements, which will remain in full force and effect, unaffected by any repayment, prepayment,
acceleration, reduction, increase or change in the terms of this Note, except as otherwise
expressly provided in said written swap agreements, and any payoff statement from Bank relating to
this Note shall not apply to said swap agreements except as otherwise expressly provided in such
payoff statement. Jurisdiction. Borrower irrevocably agrees to non-exclusive personal jurisdiction
in the state named in Bank’s address on the first page hereof. Severability. If any provision of
this Note or of the other Loan Documents shall be prohibited or invalid under applicable law, such
provision shall be ineffective but only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Note or other such
document. Notices. Any notices to Borrower shall be sufficiently given, if in writing and mailed or
delivered to the Borrower’s address shown above or such other address as provided hereunder, and to
Bank, if in writing and mailed or delivered to Wachovia Bank, National Association, Mail Code
VA7628, P. O. Box 13327, Roanoke, VA 24040 or Wachovia Bank, National Association, Mail Code
VA7628, 10 South Jefferson Street, Roanoke, VA 24011 or such other address as Bank may specify in
writing from time to time. Notices to Bank must include the mail code. In the event that Borrower
changes Borrower’s address at any time prior to the date the Obligations are paid in full, Borrower
agrees to promptly give written notice of said change of address by registered or certified mail,
return receipt requested, all charges prepaid. Plural; Captions. All references in the Loan
Documents to Borrower, guarantor, person, document or other nouns of reference mean both the
singular and plural form, as the case may be, and the term “person” shall mean any individual,
person or entity. The captions contained in the Loan Documents are inserted for convenience only
and shall not affect the meaning or interpretation of the Loan Documents. Advances. Bank may, in
its sole discretion, make other advances which shall be deemed to be advances under this Note, even
though the stated principal amount of this Note may be exceeded as a result thereof. Posting of
Payments. All payments received during normal banking hours after 2:00 p.m. local time at the
office of Bank first shown above shall be deemed received at the opening of the next banking day.
Joint and Several Obligations. If there is more than one Borrower, each is jointly and severally
obligated. Fees and Taxes. Borrower shall promptly pay all documentary, intangible recordation
and/or similar taxes on this transaction whether assessed at closing or arising from time to time
LIMITATION ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. EACH OF THE PARTIES HERETO, INCLUDING BANK BY
ACCEPTANCE HEREOF, AGREES THAT IN ANY JUDICIAL, MEDIATION OR ARBITRATION PROCEEDING OR ANY CLAIM OR
CONTROVERSY BETWEEN OR AMONG THEM THAT MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH THIS
AGREEMENT, THE LOAN DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT BETWEEN OR AMONG THEM OR THE
OBLIGATIONS EVIDENCED HEREBY OR RELATED HERETO, IN NO EVENT SHALL ANY PARTY HAVE A REMEDY OF, OR BE
LIABLE TO THE OTHER FOR, (1) INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR
EXEMPLARY DAMAGES. EACH OF THE PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR
EXEMPLARY DAMAGES THEY MAY HAVE OR WHICH MAY ARISE IN

 

 

THE FUTURE IN CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR CONTROVERSY, WHETHER THE SAME IS
RESOLVED BY ARBITRATION, MEDIATION, JUDICIALLY OR OTHERWISE. Patriot Act Notice. To help fight the
funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each person who opens an
account. For purposes of this section, account shall be understood to include loan accounts. FINAL
AGREEMENT. This Note and the other Loan Documents represent the final agreement between the parties
and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of
the parties. There are no unwritten oral agreements between the parties.

WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER BY EXECUTION
HEREOF AND BANK BY ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS NOTE, THE LOAN DOCUMENTS OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN
CONNECTION WITH THIS NOTE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
OR WRITTEN) OR ACTIONS OF ANY PARTY WITH RESPECT HERETO. THIS PROVISION IS A MATERIAL INDUCEMENT TO
BANK TO ACCEPT THIS NOTE. EACH OF THE PARTIES AGREES THAT THE TERMS HEREOF SHALL SUPERSEDE AND
REPLACE ANY PRIOR AGREEMENT RELATED TO ARBITRATION OF DISPUTES BETWEEN THE PARTIES CONTAINED IN ANY
LOAN DOCUMENT OR ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE EXECUTED IN CONNECTION WITH, RELATED TO
OR BEING REPLACED, SUPPLEMENTED, EXTENDED OR MODIFIED BY, THIS NOTE.

IN WITNESS WHEREOF, Borrower, on the day and year first above written, has caused this Note to be
executed under seal.

	 	 	 	 	 	 	 	 	 
	 	 	Gulfstream International Airlines, Inc.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	[signature]
 

Thomas P. Cooper, Senior Vice President of
	 	(SEAL)
	 	 
	 

	 	 	 	Legal Affairs and Corporate Secretary	 	 	 	 

Tracking #: 120212rke

CAT — Deal # 712612 Facility ID 509212

 

 

SECURITY AGREEMENT

August 15, 2006

Gulfstream International Airlines, Inc.

3201 Griffin Road, 4th Floor

Dania, Florida 33312

(Hereinafter referred to as “Debtor)

Wachovia Bank, National Association

Jacksonville, Florida 32202

(Hereinafter referred to as “Bank”)

For value received and to secure payment and performance of any and all obligations of Debtor (also
referred to herein as “Borrower”) to Bank however created, arising or evidenced, whether direct or
indirect, absolute or contingent, now existing or hereafter arising or acquired, including swap
agreements (as defined in 11 U.S.C. § 101, as in effect from time to time), future advances, and
all costs and expenses incurred by Bank to obtain, preserve, perfect and enforce the security
interest granted herein and to maintain, preserve and collect the property subject to the security
interest (collectively, “Obligations”), Debtor hereby grants to Bank a continuing security interest
in and lien upon the following described property, whether now owned or hereafter acquired, and any
additions, replacements, accessions, or substitutions thereof and all cash and non-cash proceeds
and products thereof (collectively, “Collateral”):

All of the personal property of Debtor of every kind and nature including, without limitation, all
accounts, equipment, accessions, inventory, chattel paper, instruments, investment property,
documents, letter-of credit rights, deposit accounts, and general intangibles, wherever located.

Debtor hereby represents and agrees that:

OWNERSHIP. Debtor owns the Collateral or Debtor will purchase and acquire rights in the Collateral
within ten days of the date advances are made under the Loan Documents. If Collateral is being
acquired with the proceeds of an advance under the Loan Documents, Debtor authorizes Bank to
disburse proceeds directly to the seller of the Collateral. The Collateral is free and clear of all
liens, security interests, and claims except those previously reported in writing to and approved
by Bank, and Debtor will keep the Collateral free and clear from all liens, security interests and
claims, other than those granted to or approved by Bank.

NAME AND OFFICES; JURISDICTION OF ORGANIZATION. The name and address of Debtor appearing at the
beginning of this Agreement are Debtor’s exact legal name and the address of its chief executive
office. There has been no change in the name of Debtor, or the name under which Debtor conducts
business, within the five years preceding the date hereof except as previously reported in writing
to Bank. Debtor has not moved its chief executive office within the five years preceding the date
hereof except as previously reported in writing to Bank. Debtor is organized under the laws of the
State of Florida and has not changed the jurisdiction of its organization within the five years
preceding the date hereof except as previously reported in writing to Bank.

 

 

TITLE/TAXES. Debtor has good and marketable title to Collateral and will warrant and defend same
against all claims. Debtor will not transfer, sell, or lease Collateral (except as permitted
herein). Debtor agrees to pay promptly all taxes and assessments upon or for the use of Collateral
and on this Security Agreement. At its option, Bank may discharge taxes, liens, security interests
or other encumbrances at any time levied or placed on Collateral. Debtor agrees to reimburse Bank,
on demand, for any such payment made by Bank. Any amounts so paid shall be added to the
Obligations.

WAIVERS. Debtor agrees not to assert against Bank as a defense (legal or equitable), as a set-off,
as a counterclaim, or otherwise, any claims Debtor may have against any seller or lessor that
provided personal property or services relating to any part of the Collateral or against any other
party liable to Bank for all or any part of the Obligations. Debtor waives all exemptions and
homestead rights with regard to the Collateral. Debtor waives any and all rights to any bond or
security which might be required by applicable law prior to the exercise of any of Bank’s remedies
against any Collateral. All rights of Bank and security interests hereunder, and all obligations of
Debtor hereunder, shall be absolute and unconditional, not discharged or impaired irrespective of
(and regardless of whether Debtor receives any notice of): (i) any lack of validity or
enforceability of any Loan Document; (ii) any change in the time, manner or place of payment or
performance, or in any term, of all or any of the Obligations or the Loan Documents or any other
amendment or waiver of or any consent to any departure from any Loan Document; or (iii) any
exchange, insufficiency, unenforceability, enforcement, release, impairment or non-perfection of
any collateral, or any release of or modifications to or insufficiency, unenforceability or
enforcement of the obligations of any guarantor or other obligor. To the extent permitted by law,
Debtor hereby waives any rights under any valuation, stay, appraisement, extension or redemption
laws now existing or which may hereafter exist and which, but for this provision, might be
applicable to any sale or disposition of the Collateral by Bank; and any other circumstance which
might otherwise constitute a defense available to, or a discharge of any party with respect to the
Obligations.

NOTIFICATIONS; LOCATION OF COLLATERAL. Debtor will notify Bank in writing at least 30 days prior to
any change in: (i) Debtor’s chief place of business and/or residence; (ii) Debtor’s name or
identity; (iii) Debtor’s corporate/organizational structure; or (iv) the jurisdiction in which
Debtor is organized. In addition, Debtor shall promptly notify Bank of any claims or alleged claims
of any other person or entity to the Collateral or the institution of any litigation, arbitration,
governmental investigation or administrative proceedings against or affecting the Collateral.
Debtor will keep Collateral at the location(s) previously provided to Bank until such time as Bank
provides written advance consent to a change of location. Debtor will bear the cost of preparing
and filing any documents necessary to protect Bank’s liens.

COLLATERAL CONDITION AND LAWFUL USE. Debtor represents that the Collateral is in good repair and
condition and that Debtor shall use reasonable care to prevent Collateral from being damaged or
depreciating, normal wear and tear excepted. Debtor shall immediately notify Bank of any material
loss or damage to Collateral. Debtor shall not permit any item of Collateral to become a fixture to
real estate or an accession to other personal property unless such property is also Collateral
hereunder. Debtor represents it is in compliance in all respects with all laws, rules and
regulations applicable to the Collateral and its properties, operations, business, and finances.

 

 

RISK OF LOSS AND INSURANCE. Debtor shall bear all risk of loss with respect to the
Collateral. The injury to or loss of Collateral, either partial or total, shall not release Debtor
from payment or other performance hereof. Debtor agrees to obtain and keep in force property
insurance on the Collateral with a Lender’s Loss Payable Endorsement in favor of Bank and
commercial general liability insurance naming Bank as Additional Insured and such other insurance
as Bank may require from time to time. Such insurance is to be in form and amounts
satisfactory to Bank and issued by reputable insurance carriers satisfactory to Bank with
a Best Insurance Report Key Rating of at least “A-”. All such policies shall provide to
Bank a minimum of 30 days written notice of cancellation. Debtor shall furnish to Bank such
policies, or other evidence of such policies satisfactory to Bank. If Debtor fails to obtain or
maintain in force such insurance or fails to furnish such evidence, Bank is authorized, but not
obligated, to purchase any or all insurance or “Single Interest Insurance” protecting such interest
as Bank deems appropriate against such risks and for such coverage and for such amounts, including
either the loan amount or value of the Collateral, all at its discretion, and at Debtor’s expense.
In such event, Debtor agrees to reimburse Bank for the cost of such insurance and Bank may add such
cost to the Obligations. Debtor shall bear the risk of loss to the extent of any deficiency in the
effective insurance coverage with respect to loss or damage to any of the Collateral. Debtor hereby
assigns to Bank the proceeds of all property insurance covering the Collateral up to the amount of
the Obligations and directs any insurer to make payments directly to Bank. Debtor hereby appoints
Bank its attorney-in-fact, which appointment shall be irrevocable and coupled with an interest for
so long as Obligations are unpaid, to file proof of loss and/or any other forms required to collect
from any insurer any amount due from any damage or destruction of Collateral, to agree to and bind
Debtor as to the amount of said recovery, to designate payee(s) of such recovery, to grant releases
to insurer, to grant subrogation rights to any insurer, and to endorse any settlement check or
draft. Debtor agrees not to exercise any of the foregoing powers granted to Bank without Bank’s
prior written consent.

FINANCING STATEMENTS, CERTIFICATES OF TITLE, POWER OF ATTORNEY. No financing statement (other than
any filed or approved by Bank) covering any Collateral is on file in any public filing office.
Debtor authorizes the filing of one or more financing statements covering the Collateral in form
satisfactory to Bank, and without Debtor’s signature, where authorized by law, agrees to
deliver certificates of title on which Bank’s lien has been indicated covering any Collateral
subject to a certificate of title statute, and will pay all costs and expenses of filing or
applying for the same or of filing this Security Agreement in all public filing offices, where
filing is deemed by Bank to be desirable. Debtor hereby constitutes and appoints Bank the true and
lawful attorney of Debtor with full power of substitution to take any and all appropriate action
and to execute any and all documents, instruments or applications that may be necessary or
desirable to accomplish the purpose and carry out the terms of this Security Agreement, including,
without limitation, to complete, execute, and deliver any Control Agreement(s) by Bank, Debtor and
Third Party(ies) that may be or become required in connection herewith (individually and
collectively the “Control Agreement”), and any instructions to Third Party(ies) regarding, among
other things, control and disposition of any Collateral which is the subject of such Control
Agreement(s). The foregoing power of attorney is coupled with an interest and shall be irrevocable
until all of the Obligations have been paid in full. Neither Bank nor anyone acting on its behalf
shall be liable for acts, omissions, errors in judgment, or mistakes in fact in such capacity as
attorney-in-fact. Debtor ratifies all acts of Bank as attorney-in-fact. Debtor agrees to take such
other actions, at Debtor’s expense, as might be requested for the perfection,

 

 

continuation and assignment, in whole or in part, of the security interests granted herein and to
assure and preserve Bank’s intended priority position. If certificates, passbooks, or other
documentation or evidence is/are issued or outstanding as to any of the Collateral, Debtor will
cause the security interests of Bank to be properly protected, including perfection by notation
thereon or delivery thereof to Bank.

LANDLORD/MORTGAGEE WAIVERS. Debtor shall cause each mortgagee of real property owned by Debtor and
each landlord of real property leased by Debtor to execute and deliver instruments satisfactory in
form and substance to Bank by which such mortgagee or landlord subordinates its rights, if any, in
the Collateral.

CONTROL. Debtor will cooperate with Bank in obtaining control with respect to Collateral consisting
of electronic chattel paper. Debtor authorizes and directs Third Party to comply with the terms of
this Security Agreement, to enter into a Control Agreement, to mark its records to show the.
security interest of and/or the transfer to Bank of the property pledged hereunder.

CHATTEL PAPER, ACCOUNTS, GENERAL INTANGIBLES. Debtor warrants that Collateral consisting of chattel
paper, accounts, or general intangibles is (i) genuine and enforceable in accordance with its
terms; (ii) not subject to any defense, set-off, claim or counterclaim of a material nature against
Debtor except as to which Debtor has notified Bank in writing; and (iii) not subject to any other
circumstances that would impair the validity, enforceability, value, or amount of such Collateral
except as to which Debtor has notified Bank in writing. Debtor shall not amend, modify or
supplement any lease, contract or agreement contained in Collateral or waive any provision therein,
without prior written consent of Bank. Debtor will not create any tangible chattel paper without
placing a legend on the chattel paper acceptable to Bank indicating that Bank has a security
interest in the chattel paper. Debtor will not create any electronic chattel paper without taking
all steps deemed necessary by Bank to confer control of the electronic chattel paper upon Bank in
accordance with the UGC.

ACCOUNT INFORMATION. From time to time, at Bank’s request, Debtor shall provide Bank with schedules
describing all accounts, including customers’ addresses, created or acquired by Debtor and at
Bank’s request shall execute and deliver written assignments of contracts and other documents
evidencing such accounts to Bank. Together with each schedule, Debtor shall, if requested by Bank,
furnish Bank with copies of Debtor’s sales journals, invoices, customer purchase orders or the
equivalent, and original shipping or delivery receipts for all goods sold, and Debtor warrants the
genuineness thereof.

ACCOUNT DEBTORS. If a Default should occur, Bank shall have the right to notify the account debtors
obligated on any or all of the Collateral to make payment thereof directly to Bank and Bank may
take control of all proceeds of any such Collateral, which rights Bank may exercise at any time.
The cost of such collection and enforcement, including attorneys’ fees and expenses, shall be borne
solely by Debtor whether the same is incurred by Bank or Debtor. If a Default should occur or upon
demand of Bank, Debtor will, upon receipt of all checks, drafts, cash and other remittances in
payment on Collateral, deposit the same in a special bank account maintained with Bank, over which
Bank also has the power of withdrawal.

 

 

If a Default should occur, no discount, credit, or allowance shall be granted by Debtor to any
account debtor and no return of merchandise shall be accepted by Debtor without Bank’s consent.
Bank may, after Default, settle or adjust disputes and claims directly with account debtors for
amounts and upon terms that Bank considers advisable, and in such cases Bank will credit the
Obligations with the net amounts received by Bank, after deducting all of the expenses incurred by
Bank. Debtor agrees to indemnify and defend Bank and hold it harmless with respect to any claim or
proceeding arising out of any matter related to collection of Collateral.

GOVERNMENT CONTRACTS. If any Collateral covered hereby arises from obligations due to Debtor from
any governmental unit or organization, Debtor shall immediately notify Bank in writing and execute
all documents and take all actions deemed necessary by Bank to ensure recognition by such
governmental unit or organization of the rights of Bank in the Collateral.

INVENTORY. So long as no Default has occurred, Debtor shall have the right in the regular course of
business, to process and sell Debtors inventory. If a Default should occur or upon demand of Bank,
Debtor will, upon receipt of all checks, drafts, cash and other remittances, in payment of
Collateral sold, deposit the same in a special bank account maintained with Bank, over which Bank
also has the power of withdrawal. Debtor agrees to notify Bank immediately in the event that any
inventory purchased by or delivered to Debtor is evidenced by a bill of lading, dock warrant, dock
receipt, warehouse receipt or other document of title and to deliver such document to Bank upon
request.

INSTRUMENTS, CHATTEL PAPER, DOCUMENTS. Any Collateral that is, or is evidenced by, instruments,
chattel paper or negotiable documents will be properly assigned to and the originals of any such
Collateral in tangible form deposited with and held by Bank, unless Bank shall hereafter otherwise
direct or consent in writing. Bank may, without notice, before or after maturity of the
Obligations, exercise any or all rights of collection, conversion, or exchange and other similar
rights, privileges and options pertaining to such Collateral, but shall have no duty to do so.

COLLATERAL DUTIES. Bank shall have no custodial or ministerial duties to perform with respect to
Collateral pledged except as set forth herein; and by way of explanation and not by way of
limitation, Bank shall incur no liability for any of the following: (i) loss or depreciation of
Collateral (unless caused by its willful misconduct or gross negligence), (ii) failure to present
any paper for payment or protest, to protest or give notice of nonpayment, or any other notice with
respect to any paper or Collateral.

TRANSFER OF COLLATERAL. Bank may assign its rights in Collateral or any part thereof to any
assignee who shall thereupon become vested with all the powers and rights herein given to Bank with
respect to the property so transferred and delivered, and Bank shall thereafter be forever relieved
and fully discharged from any liability with respect to such property so transferred, but with
respect to any property not so transferred, Bank shall retain all rights and powers hereby given.

INSPECTION, BOOKS AND RECORDS. Debtor will at all times keep accurate and complete records covering
each item of Collateral, including the proceeds therefrom. Bank, or any of its agents, shall have
the right, at intervals to be determined by Bank and without hindrance or

 

 

delay, at Debtor’s expense, to inspect, audit, and examine the Collateral during normal business
hours and to make copies of and extracts from the books, records, journals, orders, receipts,
correspondence and other data relating to Collateral, Debtor’s business or any other transaction
between the parties hereto. Debtor will at its expense furnish Bank copies thereof upon request.
For the further security of Bank, it is agreed that Bank has and is hereby granted a security
interest in all books and records of Debtor pertaining to the Collateral.

COMPLIANCE WITH LAW. Debtor will comply with all federal, state and local laws and regulations,
applicable to it, including without limitation, laws and regulations relating to the environment,
labor or economic sanctions, in the creation, use, operation, manufacture and storage of the
Collateral and the conduct of its business.

REGULATION U. None of the proceeds of the credit secured hereby shall be used directly or
indirectly for the purpose of purchasing or carrying any margin stock in violation of any of the
provisions of Regulation U of the Board of Governors of the Federal Reserve System (“Regulation
U”), or for the purpose of reducing or retiring any indebtedness which was originally incurred to
purchase or carry margin stock or for any other purchase which might render the Loan a “Purpose
Credit” within the meaning of Regulation U.

CROSS COLLATERALIZATION LIMITATION. As to any other existing or future consumer purpose loan made
by Bank to Debtor, within the meaning of the Federal Consumer Credit Protection Act, Bank expressly
waives any security interest granted herein in Collateral that Debtor uses as a principal dwelling
and household goods.

ATTORNEYS’ FEES AND OTHER COSTS OF COLLECTION. Debtor shall pay all of Bank’s reasonable expenses
actually incurred in enforcing this Security Agreement and in preserving and liquidating
Collateral, including but not limited to, reasonable arbitration, paralegals’, attorneys’ and
experts’ fees and expenses, whether incurred with or without the commencement of a suit, trial,
arbitration, or administrative proceeding, or in any appellate or bankruptcy proceeding.

DEFAULT. If any of the following occurs, a default (“Default”) under this Security Agreement shall
exist: Loan Document Default. A default under any Loan Document. Collateral Loss or Destruction.
Any loss, theft, substantial damage, or destruction of Collateral not fully covered by insurance,
or as to which insurance proceeds are not remitted to Bank within 30 days of the loss. Collateral
Sale, Lease or Encumbrance. Any sale, lease, or encumbrance of any Collateral not specifically
permitted herein without prior written consent of Bank. Levy, Seizure or Attachment. The making of
any levy, seizure, or attachment on or of Collateral which is not removed within 10 days.
Unauthorized Collection of Collateral. Any attempt to collect, cash in or otherwise recover
deposits that are Collateral. Third Party Breach. Any default or breach by a Third Party of any
provision contained in any Control Agreement executed in connection with any of the Collateral.
Unauthorized Termination. Any attempt to terminate, revoke, rescind, modify, or violate the terms
of this Security Agreement or any Control Agreement without the prior written consent of Bank.

REMEDIES ON DEFAULT (INCLUDING POWER OF SALE). If a Default occurs Bank shall have all the rights
and remedies of a secured party under the Uniform Commercial Code.

 

 

Without limitation thereto, Bank shall have the following rights and remedies: (i) to take
immediate possession of Collateral, without notice or resort to legal process, and for such
purpose, to enter upon any premises on which Collateral or any part thereof may be situated and to
remove the same therefrom, or, at its option, to render Collateral unusable or dispose of said
Collateral on Debtor’s premises; (ii) to require Debtor to assemble the Collateral and make it
available to Bank at a place to be designated by Bank; (iii) to exercise its right of set-off or
bank lien as to any monies of Debtor deposited in accounts of any nature maintained by Debtor with
Bank or affiliates of Bank, without advance notice, regardless of whether such accounts are general
or special; (iv) to dispose of Collateral, as a unit or in parcels, separately or with any real
property interests also securing the Obligations, in any county or place to be selected by Bank, at
either private or public sale (at which public sale Bank may be the purchaser) with or without
having the Collateral physically present at said sale.

Any notice of sale, disposition or other action by Bank required by law and sent to Debtor at
Debtor’s address shown above, or at such other address of Debtor as may from time to time be shown
on the records of Bank, at least 5 days prior to such action, shall constitute reasonable notice to
Debtor. Notice shall be deemed given or sent when mailed postage prepaid to Debtor’s address as
provided herein. Bank shall be entitled to apply the proceeds of any sale or other disposition of
the Collateral, and the payments received by Bank with respect to any of the Collateral, to
Obligations in such order and manner as Bank may determine. Collateral that is subject to rapid
declines in value and is customarily sold in recognized markets may be disposed of by Bank in a
recognized market for such collateral without providing notice of sale. Debtor waives any and all
requirements that the Bank sell or dispose of all or any part of the Collateral at any particular
time, regardless of whether Debtor has requested such sale or disposition.

REMEDIES ARE CUMULATIVE. No failure on the part of Bank to exercise, and no delay in exercising,
any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise by Bank or any right, power or remedy hereunder preclude any other or further
exercise thereof or the exercise of any right, power or remedy. The remedies herein provided are
cumulative and are not exclusive of any remedies provided by law, in equity, or in other Loan
Documents..

INDEMNIFICATION. Debtor shall protect, indemnify and save harmless Bank from and against all
losses, liabilities, obligations, claims, damages, penalties, fines, causes of action, costs and
expenses (including, without limitation, reasonable attorneys’ fees and expenses) (collectively,
“Damages”) imposed upon, incurred by or asserted or assessed against Bank on account of or in
connection with (i) the Loan Documents or any failure or alleged failure of Debtor to comply with
any of the terms of, or the inaccuracy or breach of any representation in, the Loan Documents, (ii)
the Collateral or any claim of loss or damage to the Collateral or any injury or claim of injury
to, or death of, any person or property that may be occasioned by any cause whatsoever pertaining
to the Collateral or the use, occupancy or operation thereof, (iii) any failure or alleged failure
of Debtor to comply with any law, rule or regulation applicable to it or to the Collateral or the
use, occupancy or operation of the Collateral (including, without limitation, the failure to pay
any taxes, fees or other charges), (iv) any Damages whatsoever by reason of any alleged action,
obligation or undertaking of Bank relating in any way to or any matter contemplated by the Loan
Documents, or (v) any claim for brokerage fees or such other commissions relating to the Collateral
or any other Obligations; provided that such indemnity

 

 

shall be effective only to the extent of any Damages that may be sustained by Bank in excess of any
net proceeds received by it from any insurance of Debtor (other than self-insurance) with respect
to such Damages. Nothing contained herein shall require Debtor to indemnify Bank for any Damages
resulting from Bank’s gross negligence or its willful misconduct. The indemnity provided for herein
shall survive payment of the Obligations and shall extend to the officers, directors, employees and
duly authorized agents of Bank. In the event Bank incurs any Damages arising out of or in any way
relating to the transaction contemplated by the Loan Documents (including any of the matters
referred to in this section), the amounts of such Damages shall be added to the Obligations, shall
bear interest, to the extent permitted by law, at the interest rate borne by the Obligations from
the date incurred until paid and shall be payable on demand.

MISCELLANEOUS. (i) Amendments and Waivers. No waiver, amendment or modification of any provision of
this Security Agreement shall be valid unless in writing and signed by Debtor and an officer of
Bank. No waiver by Bank of any Default shall operate as a waiver of any other Default or of the
same Default on a future occasion. (ii) Assignment. All rights of Bank hereunder are freely
assignable, in whole or in part, and shall inure to the benefit of and be enforceable by Bank, its
successors, assigns and affiliates. Debtor shall not assign its rights and interest hereunder
without the prior written consent of Bank, and any attempt by Debtor to assign without Bank’s prior
written consent is null and void. Any assignment shall not release Debtor from the Obligations.
This Security Agreement shall be binding upon Debtor, and the heirs, personal representatives,
successors, and assigns of Debtor. (iii) Applicable Law; Conflict Between Documents. This Security
Agreement shall be governed by and construed under the law of the jurisdiction named in the address
of the Bank shown on the first page hereof (the “Jurisdiction”) without regard to that
Jurisdiction’s conflict of laws principles, except to the extent that the UCC requires the
application of the law of a different jurisdiction. If any terms of this Security Agreement
conflict with the terms of any commitment letter or loan proposal, the terms of this Security
Agreement shall control. (iv) Jurisdiction. Debtor irrevocably agrees to non-exclusive personal
jurisdiction in the state identified as the Jurisdiction above. (v) Severability. If any provision
of this Security Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective but only to the extent of such prohibition or invalidity, without invalidating
the remainder of such provision or the remaining provisions of this Security Agreement. (vi)
Notices. Any notices to Debtor shall be sufficiently given, if in writing and mailed or delivered
to the address of Debtor shown above or such other address as provided hereunder; and to Bank, if
in writing and mailed or delivered to Wachovia Bank, National Association, Mail Code VA7628, P. O.
Box 13327, Roanoke, VA 24040 or Wachovia Bank, National Association, Mail Code VA7628, 10 South
Jefferson Street, Roanoke, VA 24011 or such other address as Bank may specify in writing from time
to time. Notices to Bank must include the mail code. In the event that Debtor changes Debtor’s
mailing address at any time prior to the date the Obligations are paid in full, Debtor agrees to
promptly give written notice of said change of address by registered or certified mail, return
receipt requested, all charges prepaid. (vii) Captions. The captions contained herein are inserted
for convenience only and shall not affect the meaning or interpretation of this Security Agreement
or any provision hereof. The use of the plural shall also mean the singular, and vice versa. (viii)
Joint and Several Liability. If more than one party has signed this Security Agreement, such
parties are jointly and severally obligated hereunder. (ix) Binding Contract. Debtor by execution
and Bank by acceptance of this Security Agreement, agree that each party is bound by all terms and
provisions of this Security Agreement. FINAL AGREEMENT. This Agreement and the other Loan

 

 

Documents represent the final agreement between the parties and may not be contradicted by evidence
of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties.

DEFINITIONS. Loan Documents. The term “Loan Documents” refers to all documents, including this
Agreement, whether now or hereafter existing, executed in connection with or related to the
Obligations, and may include, without limitation and whether executed by Debtor or others,
commitment letters that survive closing, loan agreements, promissory notes, guaranty agreements,
deposit or other similar agreements, other security agreements, letters of credit and applications
for letters of credit, security instruments, financing statements, mortgage instruments, any
renewals or modifications, whenever any of the foregoing are executed, but does not include swap
agreements (as defined in 11 U.S.C. § 101, as in effect from time to time). Third Party. The term
“Third Party” means any Broker, Collateral Agent, Securities Intermediary and/or bank which from
time to time maintains a securities account, and is acting in such capacity, for Debtor or
maintains a deposit account for Debtor with respect to any part of the Collateral. UCC. “UCC” means
the Uniform Commercial Code as presently and hereafter enacted in the Jurisdiction. Terms defined
in the UCC. Any term used in this Agreement and in any financing statement filed in connection
herewith which is defined in the UCC and not otherwise defined in this Agreement or any other Loan
Document has the meaning given to the term in the UCC.

IN WITNESS WHEREOF, Debtor, on the day and year first written above, has caused this Security
Agreement to be executed under seal.

	 	 	 	 	 	 	 	 	 
	 	 	Gulfstream International Airlines, Inc.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	[signature]
 

Thomas P. Cooper, Senior Vice President of
	 	(SEAL)
	 	 
	 

	 	 	 	Legal Affairs and Corporate Secretary	 	 	 	 

Tracking #: 120212rke

CAT — Deal # 712612 Facility ID 509212

 

 

CERTIFICATE OF RESOLUTION TO BORROW

The undersigned, individually and/or through their duly authorized officer(s), hereby certify to
Wachovia Bank, National Association (“Bank”) that the undersigned is the Authorized Signer of G-AIR
HOLDINGS CORP. (“Corporation’’), a Corporation duly organized and existing under the laws of the
State of Florida; that the following is a true copy of the Resolution duly adopted by the Board of
Directors; that such Resolution is in full force and effect and has not been amended or rescinded;
and that there is no provision in the Certificate or Articles of Incorporation, Charter or By-laws
of Corporation, limiting the power of the Board of Directors to pass the following Resolution,
which is in full conformity with the provisions of the Certificate or Articles of Incorporation,
Charter or By-laws of Corporation.

RESOLVED, that EACH of the present holder(s) of the following office(s) and/or position(s)
of Corporation and his (her) successor(s) in office or position:

Title Corporate Secretary

is (are) hereby authorized, on behalf of, in the name of and for the account of Corporation
to:

	 	a.	 	borrow money and/or obtain or continue credit (with or without security) from
Bank, upon such terms and conditions and in such amounts as such officer(s) or
position-holder(s) may deem desirable;
	 
	 	b.	 	execute and/or endorse all documents necessary or required by Bank to evidence
or consummate any loan to Corporation;
	 
	 	c.	 	guarantee the obligations of others to Bank;
	 
	 	d.	 	engage in business transactions of any nature and kind and/or enter into any
manner of contractural relationships with Bank;
	 
	 	e.	 	grant a security interest of any kind in, assign, mortgage, or otherwise
encumber property, whether real, personal, tangible, intangible and/or mixed (including
securities of all types and in whatever form), of Corporation as collateral securing
payment or performance relative to any loan to or guaranteed by Corporation;
	 
	 	f.	 	sell, purchase and/or lease real, personal, tangible, intangible, and/or mixed
property to/from Bank;
	 
	 	g.	 	enter into; execute and deliver, and perform Corporation’s obligations under
any swap agreement (as defined in 11 USC §101, as in effect from time to time) with
Bank, derivative agreement or foreign exchange agreement, and execute any and all
documents relative thereto as may be necessary or required by Bank;

RESOLVED FURTHER, that the foregoing authority shall not be limited to the above-identified
officer(s) or position-holder(s) of Corporation but shall extend to such additional or
different “ -individuals as are named as being so authorized in any letter,

 

 

form or other written or oral notice by any such above-identified officer or position-holder
of Corporation;

RESOLVED FURTHER, that the Authorized Signer of Corporation shall furnish Bank a certified
copy of this Resolution, and Bank is hereby authorized to deal with the present holder(s) of
said office(s) or position(s) under the authority of this Resolution unless and until it
shall be expressly notified in writing to the contrary by Corporation;

RESOLVED FURTHER, that the Authorized Signer of Corporation, shall, from time to time
hereafter, as changes in the personnel of the said office(s) or position(s) of Corporation,
are made, immediately certify such changes to Bank, and that Bank shall be fully protected
in relying upon such certifications of the Authorized Signer of Corporation, and shall be
indemnified and saved harmless from any claims, demands, expenses, losses and/or damages
resulting from, or growing out of, honoring the signature of any officer(s) or
position-holder(s), representative(s), agent(s), or employee(s) so certified, or refusing to
honor any signature not so certified which is not described or stated in this Resolution;

RESOLVED FURTHER, that the Authorized Signer of Corporation is (are) authorized and directed
to certify to Bank that this Resolution was duly adopted, and that the provisions thereof
are in full conformity with the Certificates or Articles of Incorporation, Charter or
By-laws of Corporation;

RESOLVED FURTHER, that all transactions by any officer(s), member(s), position-holder(s),
representative(s), agent(s), or employee(s) of Corporation, on its behalf and in its name,
with Bank prior to delivery of a certified copy of this Resolution are, in all respects,
hereby ratified, confirmed and adopted;

RESOLVED FURTHER, that the holder(s) of the above-identified office(s) or position(s) is
(are) expressly authorized to affix the seal, if any, of Corporation on any instrument and
to adopt any facsimile seal for any occasion and purpose on any instrument as the seal, of
Corporation, and that this Resolution supersedes any By-law or other organizational document
of Corporation to the contrary; and

RESOLVED FURTHER, that any person(s) authorized to act on behalf of Corporation pursuant to
the terms of this Resolution is (are) fully authorized to take any action or exercise any
powers as set out or granted by those terms in relation to any subsidiary, parent or
affiliate of Corporation.

I, finally, certify that the following is (are) the person(s) who now hold(s) the office(s) and/or
position(s) referred to above in this Resolution and that his (her) bona fide signature(s) is (are)
set forth below:

	 	 	 	 	 
	 

	 	[signature]
 

Name: Thomas P. Cooper
	 	 
	 

	 	Title: Corporate Secretary	 	 

 

 

IN WITNESS WHEREOF, I have hereunto subscribed my name(s) and affixed the seal, if any, of
Corporation on August 9, 2006.

	 	 	 	 	 	 	 	 	 
	CORPORATE 

SEAL

	 	By:
	 	[signature]
 

(Signature of Person Authorized to Sign)
	 	Authorized Signer
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	           [printed name]	 	 	 	 
	 

	 	 	 	(Printed Name)	 	 	 	 

Tracking #: 120212rke

CAT — Deal # 712612 Facility ID 509212

 

 

CERTIFICATE OF RESOLUTION TO BORROW

The undersigned, individually and/or through their duly authorized officer(s), hereby certify to
Wachovia Bank, National Association (“Bank”) that the undersigned is the Authorized Signer of
GULFSTREAM INTERNATIONAL AIRLINES, INC. (“Corporation”), a Corporation duly organized and existing
under the laws of the State of Florida; that the following is a true copy of the Resolution duly
adopted by the Board of Directors; that such Resolution is in full force and effect and has not
been amended or rescinded; and that there is no provision in the Certificate or Articles of
Incorporation, Charter or By-laws of Corporation, limiting the power of the Board of Directors to
pass the following Resolution, which is in full conformity with the provisions of the Certificate
or Articles of Incorporation, Charter or By-laws of Corporation.

RESOLVED, that EACH of the present holder(s) of the following office(s) and/or position(s)
of Corporation and his (her) successor(s) in office or position:

Senior Vice President of Legal Affairs and Corporate Secretary

is (are) hereby authorized, on behalf of, in the name of and for the account of Corporation
to:

	 	a.	 	borrow money and/or obtain or continue credit (with or without security) from
Bank, upon such terms and conditions and in such amounts as such officer(s) or
position-holder(s) may deem desirable;
	 
	 	b.	 	execute and/or endorse all documents necessary or required by Bank to evidence
or consummate any loan to Corporation:
	 
	 	c.	 	guarantee the obligations of others to Bank;
	 
	 	d.	 	engage in business transactions of any nature and kind and/or enter into any
manner of contractual relationships with Bank;
	 
	 	e.	 	grant a security interest of any kind in, assign, mortgage, or otherwise
encumber property, whether real, personal, tangible, intangible and/or mixed (including
securities of all types and in whatever form), of Corporation as collateral securing
payment or performance relative to any loan to or guaranteed by Corporation;
	 
	 	f.	 	sell, purchase and/or lease, real, personal, tangible, intangible, and/or mixed
property to/from Bank;
	 
	 	g.	 	enter into, execute and deliver, and perform Corporation’s obligations under
any swap agreement (as defined in 11 USC §101, as in effect from time to time) with
Bank, derivative agreement or foreign exchange agreement, and execute any and all
documents relative thereto as may be necessary or required by Bank;

RESOLVED FURTHER, that the foregoing authority shall not be limited to the above-identified
officer(s) or position-holder(s) of Corporation but shall extend to such additional or
different individuals as are named as being so authorized in any letter, form

 

 

or other written or oral notice by any such above-identified officer or position-holder of
Corporation;

RESOLVED FURTHER, that the Authorized Signer of Corporation shall furnish Bank a certified
copy of this Resolution, and Bank is hereby authorized to deal with the present holder(s) of
said office(s) or position(s) under the authority of this Resolution unless and until it
shall be expressly notified in writing to the contrary by Corporation:

RESOLVED FURTHER, that the Authorized Signer of Corporation, shall, from time to time
hereafter, as changes in the personnel of the said office(s) or position(s) of Corporation,
are made, immediately certify such changes to Bank, and that Bank shall be fully protected
in relying upon such certifications of the Authorized Signer of Corporation, and shall be
indemnified and saved harmless from any claims, demands, expenses, losses and/or damages
resulting from, or growing out of, honoring the signature of any officer(s) or
position-holder(s), representative(s), agent(s), or employee(s) so certified, or refusing to
honor any signature not so certified which is not described or stated in this Resolution;

RESOLVED FURTHER, that the Authorized Signer of Corporation is (are) authorized and directed
to certify to Bank that this Resolution was duly adopted, and that the provisions thereof
are in full conformity with the Certificates or Articles of Incorporation, Charter or
By-laws of Corporation;

RESOLVED FURTHER, that all transactions by any officer(s), member(s), position-holder(s),
representative(s), agent(s), or employee(s) of Corporation, on its behalf and in its name,
with Bank prior to delivery of a certified copy of this Resolution are, in all respects,
hereby ratified, confirmed and adopted;

RESOLVED FURTHER, that the holder(s) of the above-identified office(s) or position(s) is
(are) expressly authorized to affix the seal, if any, of Corporation on any instrument and
to adopt any facsimile seal for any occasion and purpose on any instrument as the seal, of
Corporation, and that this Resolution supersedes any By-law or other organizational document
of Corporation to the contrary; and

RESOLVED FURTHER, that any person(s) authorized to act on behalf of Corporation pursuant to
the terms of this Resolution is (are) fully authorized to take any action or exercise any
powers as set out or granted by those terms in relation to any subsidiary, parent or
affiliate of Corporation.

I, finally, certify that the following is (are) the person(s) who now hold(s) the office(s) and/or
position(s) referred to above in this Resolution and that his (her) bona fide signature(s) is (are)
set forth below:

	 	 	 	 	 	 	 
	 

	 	     [signature]
 

Thomas P. Cooper
	 	Senior Vice President of
Legal Affairs and
Corporate Secretary
	 	 

Page 2

 

IN WITNESS WHEREOF, I have hereunto subscribed my name(s) and affixed the seal, if any, of
Corporation on August 15, 2006.

	 	 	 	 	 	 	 	 	 
	CORPORATE 

SEAL

	 	By:
	 	[signature]
 

(Signature of Person Authorized to Sign
	 	Authorized Signer
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	           [printed name]	 	 	 	 
	 

	 	 	 	(Printed Name)	 	 	 	 

Page 3

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