Document:

Exhibit 10.25 - Aircraft Time Sharing Agreement dated December 1, 2006

    Exhibit
      10.25

    FIRSTGOLD
      CORP.

     

    AIRCRAFT
      TIME SHARING AGREEMENT 

     

    This
      Aircraft Time Sharing Agreement ("Agreement")
      by and
      between Firstgold Corp. ("Lessee"),
      a
      Delaware corporation whose address is 3108 Gabbert Drive, Suite 210, Cameron
      Park, California 95682 and A. Scott Dockter ("Lessor"),
      whose
      address is 300 w. Second Street, Carson City, Nevada 89703 (collectively the
      "Parties"),
      is
      effective December 1, 2006, and shall terminate on December 31, 2015 unless
      terminated sooner by either party pursuant to Article 9 below. 

     

    WHEREAS,
      Lessor is legal owner of an aircraft ("Aircraft"),
      equipped with engines and components as described in the Aircraft Subject to
      the
      Time Sharing Agreement attached hereto and made a part hereof, as Exhibit
      A;
      and

     

    WHEREAS,
      Lessor and Lessee desire to lease said Aircraft on a non-exclusive time sharing
      basis as defined in Section 91.501 (c) (1) of the Federal Aviation Regulations
      ("FAR");
      

     

    WHEREAS,
      this Agreement sets forth the understanding of the Parties as to the terms
      under
      which Lessor will provide Lessee with the use, on a periodic basis, of the
      Aircraft as described in Exhibit A hereto, currently owned by Lessor.

     

    WHEREAS,
      the use of the Aircraft will at all times be pursuant to and in full compliance
      with the requirements of FAR 91.501(b)(6), 91.501(c)(1), and 91.501(d);

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements herein
      contained, the Parties agree as follows: 

     

    Use
      of
      Aircraft.
      

     

    Lessee
      may use the Aircraft from time to time, with the permission and approval of
      Lessor, for any and all purposes allowed by FAR 91.501(b)(6). Lessee's use
      shall
      include the use of the Aircraft by any officer or employee of the Lessee who
      has
      been authorized by Lessee to use the Aircraft on an as needed basis
      (“Authorized
      Users”).
      

     

    Lessee
      represents, warrants and covenants to Lessor that: 

     

    Lessee
      will use such Aircraft for and on Lessee’s own account only and will not use the
      Aircraft for the purposes of providing transportation of passengers or cargo
      in
      air commerce for compensation or hire; 

     

    Lessee
      shall refrain from incurring any mechanics or other lien in connection with
      inspection, preventative maintenance, maintenance or storage of the Aircraft,
      whether permissible or impermissible under this Agreement, and Lessee shall
      not
      attempt to convey, mortgage, assign, lease or in any way alienate the Aircraft
      or create any kind of lien or security interest involving the Aircraft or do
      anything or take any action that might mature into such a lien; 

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    During
      the term of this Agreement, Lessee will abide by and conform to all such laws,
      governmental, and airport orders, rules, and regulations as shall from time
      to
      time be in effect relating in any way to the operation and use of the Aircraft
      by a time-sharing Lessee; 

     

    Lessee
      shall only permit operation of the Aircraft by a fully qualified
      pilot.

     

    Lessee
      shall provide Lessor with notice of its desire to use the Aircraft and proposed
      flight schedules as far in advance of any given flight as possible, and in
      any
      case, at least forty-eight (48) hours in advance of Lessee's planned departure.
      Requests for flight time shall be in a form, whether written or oral, mutually
      convenient to, and agreed upon by the Parties. In addition to the proposed
      schedules and flight times Lessee shall provide at least the following
      information for each completed flight promptly upon the completion of each
      flight: 

     

    departure
      point; 

     

    destination;
      

     

    date
      and
      time of flight; 

     

    the
      number and identity of passengers and relationship to the Lessee; 

     

    the
      nature and extent of luggage and/or cargo carried; 

     

    the
      date
      and time of return flight, if any; and 

     

    any
      other
      information concerning the flight that may be pertinent or required by Lessor.
      

     

    Lessor
      shall notify Lessee as to whether or not the requested use of the Aircraft
      can
      be accommodated and, if not, the Parties shall discuss alternatives.

     

    Lessee's
      planned utilization of the Aircraft will take precedence over Lessor's use.
      Additionally, any maintenance and inspection of the Aircraft takes precedence
      over scheduling of the Aircraft unless such maintenance or inspection can be
      safely deferred in accordance with applicable laws and regulations and within
      the sound discretion of the Pilot-In-Command. 

     

    Lessor
      shall have sole and exclusive authority over the scheduling of the Aircraft.
      

     

    Lessor
      shall not be liable to Lessee or any other person for loss, injury, or damage
      occasioned by the delay or failure to furnish the Aircraft pursuant to this
      Agreement for any reason. 

     

    Time
      Sharing Arrangement.
      

     

    It
      is
      intended that this Agreement will meet the requirements of a "Time Sharing
      Agreement" as that term is defined in FAR Part 91.501(c)(1) whereby Lessor
      will
      lease its Aircraft to Lessee. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Cost
      of Use of Aircraft.
      

     

    In
      exchange for use of the Aircraft, Lessee shall pay a flat rental rate of $200.00
      per hour of flight time utilized by Lessee. 

     

    In
      addition to the rental rate, Lessee shall pay the direct operating costs of
      the
      Aircraft permitted pursuant to FAR 91.501 for any flight conducted under this
      Agreement or a lesser amount as mutually agreed to by the Parties. Pursuant
      to
      FAR 91.501(d), those direct operating costs shall be limited to the following
      expenses for each use of the Aircraft: 

     

    Cost
      of
      Fuel, Oil, Lubricants and Other Additives; 

     

    Travel
      expenses of the pilot (if other than an employee of Lessee), including food,
      lodging, and ground transportation. 

     

    Hangar
      and tie-down costs away from the Aircraft's base of operation. 

     

    Insurance
      obtained for a specific flight. 

     

    Landing
      fees, airport taxes, and similar assessments. 

     

    Customs,
      foreign permit, and similar fees directly related to the flight. 

     

    Flight
      planning and weather contract services. 

     

    Lessor
      will invoice, and Lessee will pay, for all appropriate charges. 

     

    In
      addition to the rental rate referenced in Section 3(a) above, Lessee shall
      also
      be assessed the Federal Excise Taxes as imposed under Section 4261 of the
      Internal Revenue Code, and any segment and landing fees associated with such
      flight(s). 

     

    Invoicing
      and Payment.
      

     

    All
      payments to be made to Lessor by Lessee hereunder shall be paid in the manner
      set forth in this Paragraph 4. Lessor will pay to suppliers, employees,
      contractors and government entities all expenses related to the operations
      of
      the Aircraft hereunder in the ordinary course. As to each flight operated
      hereunder, Lessor shall provide to Lessee an invoice for the flight time used
      and the charges specified in Paragraph 3(b) of this Agreement (plus domestic
      or
      international air transportation Excise Taxes, as applicable, imposed by the
      Internal Revenue Code and collected by Lessor), such invoice to be issued within
      thirty (30) days after the completion of each such flight. Lessee, at its
      option, may prepay for the expected use of the Aircraft but in any case, Lessee
      shall pay Lessor the full amount of such invoice upon receipt of the invoice.
      In
      the event Lessor has not received a supplier invoice for reimbursable charges
      relating to such flight prior to such invoicing, Lessor shall issue a
      supplemental invoice for such charges to Lessee within thirty (30) days of
      the
      date of receipt of the supplier invoice and Lessee shall pay such supplemental
      invoice amount upon receipt thereof. All such invoices shall separately itemize
      the expenses in items (i) through (vii) of paragraph 3(b) for each flight
      included in that invoice. Delinquent payments, defined as payments received
      more
      than thirty (30) days after invoice, to Lessor by Lessee hereunder shall bear
      interest at the rate of ten percent (10%) per annum from the due date until
      the
      date of payment. Lessee shall further pay all costs incurred by Lessor in
      collecting any amounts due from Lessee pursuant to the provisions of this
      Paragraph 4 after delinquency, including court costs and reasonable attorneys'
      fees. 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Insurance
      and Limitation of Liability.
      

     

    Lessor
      represents that the flight operations for the Aircraft as contemplated in this
      Agreement will be covered by the Lessor's aircraft all-risk physical damage
      insurance (hull Coverage), aircraft bodily injury and property damage liability
      insurance, passenger, pilot and crew voluntary settlement insurance and
      statutory workers compensation and employer's liability insurance. 

     

    Insurance.
      

     

    Lessor
      will maintain or cause to be maintained in full force and effect throughout
      the
      term of this Agreement aircraft liability insurance in respect of the Aircraft
      in an amount at least equal to $______ million combined single limit for bodily
      injury to or death of persons (including passengers) and property damage
      liability. Lessor will retain all rights and benefits with respect to the
      proceeds payable under policies of hull insurance maintained by Lessor that
      may
      be payable as a result of any incident or occurrence while an Aircraft is being
      operated on behalf of Lessee under this Agreement. 

     

    Lessor
      shall use his best efforts to procure such additional insurance coverage as
      Lessee may request naming Lessee as an additional insured; provided, that the
      cost of such additional insurance shall be borne by Lessee pursuant to Paragraph
      3(b)(iv) above. 

     

    Limitation
      of Liability.
      Lessee
      agrees that the insurance specified in paragraph 5(a) shall provide its sole
      recourse for all claims, losses, liabilities, obligations, demands, suits,
      judgments or causes of action, penalties, fines, costs and expenses of any
      nature whatsoever, including attorneys' fees and expenses for or on account
      of
      or arising out of, or in any way connected with the use of the Aircraft by
      Lessee or its guests, including injury to or death of any persons, including
      Lessee’s employees and its guests which may result from or arise out of the use
      or operation of the Aircraft during the term of this Agreement ("Claims").
      This
      Section 5 shall survive termination of this Agreement. 

     

    Lessee
      agrees that when, in the reasonable view of the Pilot-In-Command of the
      Aircraft, safety may be compromised, Lessor or the pilot may terminate a flight,
      refuse to commence a flight, or take other action necessitated by such safety
      considerations without liability for loss, injury, damage, or delay. Lessee
      agrees that Lessee's operation of the Aircraft will be within the operation
      guidelines of any pilot operating the Aircraft on behalf of the Lessee who
      will
      be responsible to operate within the guidelines of FAR 91 and the pilot’s
      private pilot certification. 

     

    In
      no
      event shall Lessor be liable to Lessee or its employees, agents,
      representatives, guests, or invitees for any claims or liabilities, including
      property damage or injury and death, and expenses, including attorney's fees,
      in
      excess of the amount paid by Lessor's insurance carrier in the event of such
      loss. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    LESSOR
      SHALL IN NO EVENT BE LIABLE TO LESSEE OR ITS EMPLOYEES, AGENTS, REPRESENTATIVES,
      GUESTS, OR INVITEES FOR ANY INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES AND/OR
      PUNITIVE DAMAGES OF ANY KIND OR NATURE UNDER ANY CIRCUMSTANCES OR FOR ANY REASON
      INCLUDING ANY DELAY OR FAILURE TO FURNISH THE AIRCRAFT OR CAUSED OR OCCASIONED
      BY THE PERFORMANCE OR NON-PERFORMANCE OF ANY SERVICES COVERED BY THIS AGREEMENT.
      

     

    Covenants
      Regarding Aircraft Maintenance.
      

     

    The
      Aircraft has been inspected and maintained in the twelve-month period preceding
      the date hereof in accordance with the provisions of FAR Part 91. Lessor shall,
      at its own expense, inspect, maintain, service, repair, overhaul, and test
      the
      Aircraft in accordance with FAR Part 91. The Aircraft will remain in good
      operating condition and in a condition consistent with its airworthiness
      certification, including all FAA-issued airworthiness directives and mandatory
      service bulletins. In the event that any non-standard maintenance is required
      during any applicable lease term, Lessor shall immediately notify Lessee of
      the
      maintenance required, the effect on the ability to comply with Lessee's use
      requirements and the manner in which the Parties will proceed with the
      performance of such maintenance and conduct of the balance of the planned
      flight(s). 

     

    No
      Warranty.
      

     

    NEITHER
      LESSOR (NOR HIS AFFILIATES) MAKES, HAS MADE OR SHALL BE DEEMED TO MAKE OR HAVE
      MADE ANY WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR
      ORAL,
      WITH RESPECT TO THE AIRCRAFT TO BE USED HEREUNDER OR ANY ENGINE OR COMPONENT
      THEREOF INCLUDING, WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE
      WITH SPECIFICATIONS, QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY,
      FITNESS FOR ANY PURPOSE, USE OR OPERATION, AIRWORTHINESS, SAFETY, PATENT,
      TRADEMARK OR COPYRIGHT INFRINGEMENT OR TITLE. 

     

    Operational
      Control.
      

     

    Lessee
      shall be responsible for the physical and technical operation of the Aircraft
      and the safe performance of all flights performed on behalf of the Lessee.
      However, Lessor shall retain ultimate authority and control and possession
      of
      the Aircraft at all times during the term of this Agreement. In accordance
      with
      applicable FARs, the qualified pilot provided by Lessee will exercise all
      required and/or appropriate duties and responsibilities in regard to the safety
      of each flight conducted hereunder. The Pilot-In-Command shall have absolute
      discretion in all matters concerning the preparation of the Aircraft for flight
      and the flight itself, the load carried and its distribution, the decision
      whether or not a flight shall be undertaken, the route to be flown, the place
      where landings shall be made and all other matters relating to operation of
      the
      Aircraft. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Lessee
      specifically agrees that the flight crew shall have final and complete authority
      to delay or cancel any flight for any reason or condition which, in sole
      judgment of the Pilot-In-Command, could compromise the safety of the flight
      and
      to take any other action which, in the sole judgment of the Pilot-In-Command,
      is
      necessitated by considerations of safety. No such action of the Pilot-In-Command
      shall create or support any liability to Lessee or any other person for loss,
      injury, damages or delay. The Parties further agree that Lessor shall not be
      liable for delay or failure to furnish the Aircraft pursuant to this Agreement
      which failure is caused by government regulation or authority, mechanical
      difficulty or breakdown, war, civil commotion, strikes or labor disputes,
      weather conditions, acts of God or other circumstances beyond Lessor's
      reasonable control. Lessee represents that Lessee's operation of the Aircraft
      is
      within the operational guidelines of the Lessor's Flight Requirements and the
      Lessee’s pilots are responsible to operate within the guidelines of FAR 91 and
      the pilot’s flight certifications. 

     

    Termination.
      

     

    Either
      party may terminate this Agreement for any reason upon written notice to the
      other, such termination to become effective ten (10) days from the date of
      the
      notice; provided that this Agreement may be terminated on such shorter notice
      as
      may be required to comply with applicable laws, regulations, the requirements
      of
      any financial institution with a security or other interest in the Aircraft,
      insurance requirements or in the event the insurance required hereunder is
      not
      in full force and effect. 

     

    Upon
      a
      termination of this Agreement pursuant to Paragraph 9(a) above, Lessee shall
      pay
      any and all amounts due to Lessor within ten (10) days of Lessor’s presentment
      of a final invoice to Lessee. If Lessee has prepaid for use of the Aircraft,
      Lessor shall refund any remaining credit balance to Lessee within twenty (20)
      days of the termination date of this Agreement. 

     

    Governing
      Law.
      

     

    The
      Parties hereto acknowledge that this Agreement shall be governed by and
      construed in all respects in accordance with the laws of the State of
      California. 

     

    Counterparts.
      

     

    This
      Agreement may be executed in one or more counterparts each of which will be
      deemed an original, all of which together shall constitute one and the same
      agreement. 

     

    Entire
      Agreement.
      

     

    This
      Time
      Sharing Agreement constitutes the entire understanding among the Parties with
      respect to its subject matter, and there are no representations, warranties,
      rights, obligations, liabilities, conditions, covenants, or agreements other
      than as expressly set forth herein. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Notices
      and Communications.
      

     

    All
      notices, requests, demands and other communications required or desired to
      be
      given hereunder shall be in writing (except as permitted pursuant to Paragraph
      1(c)) and shall be deemed to be given: (i) if personally delivered, upon such
      delivery; (ii) if mailed by certified mail, return receipt requested, postage
      pre-paid, addressed as follows (to the extent applicable for mailing), upon
      the
      earlier to occur of actual receipt, refusal to accept receipt or three (3)
      days
      after such mailing; (iii) if sent by regularly scheduled overnight delivery
      carrier with delivery fees either prepaid or an arrangement, satisfactory with
      such carrier, made for the payment of such fees, addressed (to the extent
      applicable for overnight delivery) as follows, upon the earlier to occur of
      actual receipt or the next "Business Day" (as hereafter defined) after being
      sent by such delivery; or (iv) upon actual receipt when sent by fax, mailgram,
      telegram or email: 

    

    If
      to
      LESSOR: 

    

    A.
      Scott
      Dockter

    c/o
      ASD
      Aviation, Inc.

    300
      W.
      Second Street

    Carson
      City, NV 89703 

    

    If
      to
      LESSEE: 

    

    Firstgold
      Corp.

    3108
      Gabbert Drive, Suite 210

    Cameron
      Park, CA 95682

    Attn:
      Corporate Secretary

    

     

    Notices
      given by other means shall be deemed to be given only upon actual receipt.
      Addresses may be changed by written notice given as provided herein and signed
      by the party giving the notice. 

     

    Further
      Acts.
      

     

    Lessor
      and Lessee shall from time to time perform such other and further acts and
      execute such other and further instruments as may be required by law or may
      be
      reasonably necessary to: (i) carry out the intent and purpose of this Agreement;
      and (ii) establish, maintain and protect the respective rights and remedies
      of
      the other party. 

     

    Successors
      and Assigns.
      

     

    Neither
      this Agreement nor any party's interest herein shall be assignable to any other
      party whatsoever. This Agreement shall inure to the benefit of and be binding
      upon the Parties hereto, their heirs, representatives and successors.

     

    Severability.
      

     

    In
      the
      event that any one or more of the provisions of the Agreement shall for any
      reason be held to be invalid, illegal, or unenforceable, those provisions shall
      be replaced by provisions acceptable to both Parties to this Agreement.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Flight
      Crew.
      

     

    Lessee
      shall employ, pay for and provide a qualified pilot for all flight operations
      under this Agreement performed on behalf of Lessee. 

     

    Base
      of Operations.
      

     

    For
      purposes of this Agreement, the base of operation of the Aircraft is Cameron
      Park Airport, Cameron Park, California; provided that such base may be changed
      permanently upon notice from Lessor to Lessee. 

     

    Taxes.
      

     

    The
      Parties acknowledge that reimbursement of all items specified in Paragraph
      3 are
      subject to the Federal Excise Tax imposed under Internal Revenue Code 4261
      (the
      "Commercial
      Transportation Tax").
      Lessee shall pay to Lessor (for payment to the appropriate governmental agency)
      any Commercial Transportation Tax applicable to flights of the Aircraft
      conducted hereunder. Lessor shall indemnify Lessee for any claims related to
      the
      Commercial Transportation Tax to the extent that Lessee has paid Lessor the
      amounts necessary to pay such taxes. 

     

    Title.
      

     

    Legal
      title to the Aircraft shall remain in the Lessor at all times. 

     

    Truth-in-Leasing.
      

     

    The
      Lessor shall mail a copy of this Agreement for and on behalf of both Parties
      to:
      Flight Standards Technical Division, P.O. Box 25724, Oklahoma City, Oklahoma
      73125, within twenty-four (24) hours of its execution, as provided by FAR
      91.23(c)(1). Additionally, Lessor agrees to comply with the notification
      requirements of FAR Section 91.23 by notifying by telephone or in person the
      Sacramento FAA Flight Standards District Office at least forty-eight (48) hours
      prior to the first flight under this Agreement. 

     

    LESSOR
      CERTIFIES THAT THE AIRCRAFT HAS BEEN INSPECTED AND MAINTAINED WITHIN THE
      12-MONTH PERIOD PRECEDING THE DATE OF THIS AGREEMENT IN ACCORDANCE WITH THE
      PROVISIONS OF PART 91 OF THE FEDERAL AVIATION REGULATIONS AND THAT ALL
      APPLICABLE REQUIREMENTS FOR THE AIRCRAFT'S MAINTENANCE AND INSPECTION THEREUNDER
      HAVE BEEN MET AND ARE VALID FOR THE OPERATIONS TO BE CONDUCTED UNDER THIS
      AGREEMENT. 

     

    LESSEE,
      WHOSE ADDRESS APPEARS IN PARAGRAPH 13 ABOVE AND WHOSE AUTHORIZED SIGNATURE
      APPEARS BELOW, AGREES, CERTIFIES AND ACKNOWLEDGES THAT WHENEVER THE AIRCRAFT
      IS
      OPERATED UNDER THIS AGREEMENT, A QUALIFIED PILOT, WHO MAY BE AN EMPLOYEE OF
      LESSEE, SHALL BE KNOWN AS, CONSIDERED AND SHALL IN FACT BE THE OPERATOR OF
      THE
      AIRCRAFT AND THAT LESSEE UNDERSTANDS ITS RESPONSIBILITIES TO INSURE ITS PILOT
      COMPLIES WITH APPLICABLE FEDERAL AVIATION REGULATIONS. 

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    THE
      PARTIES UNDERSTAND THAT AN EXPLANATION OF FACTORS AND PERTINENT FEDERAL AVIATION
      REGULATIONS BEARING ON OPERATIONAL CONTROL CAN BE OBTAINED FROM THE NEAREST
      FAA
      FLIGHT STANDARDS DISTRICT OFFICE. 

     

    IN
      WITNESS WHEREOF, the Parties hereto have each caused this Agreement to be duly
      executed on the date first set forth above. 

    

    
      	 	
              LESSEE:
                

            
	 	 	 
	 	
              FIRSTGOLD
                CORP.

            
	 
 	 
 	 
 
	 	By:  	/s/ James
              Kluber
	 	
              
James
              Kluber
	 	Its:
              Chief Financial Officer

    
      

      
        	 	
                LESSOR:
                  

              
	 	 	 
	 
 	 
 	 
 
	 	By:  	/s/ A.
                Scott
                Dockter
	 	
                
A.
                SCOTT DOCKTER
	 	
              

      

    

    

     

     

    
      

    

    

    
      
        
        

         

      

      
        9

        
          

        

      

      
         

        
        

      

    

     

    EXHIBIT
      A 

     

    FIRSTGOLD
      CORP.

     

    AIRCRAFT
      SUBJECT TO TIME SHARING AGREEMENT 

    

     

    Each
      of
      the undersigned is a party to the Time Sharing Agreement dated
      _____________________, 2007, by and between Firstgold Corp. ("Lessee"),
      and
      A. Scott Dockter ("Lessor")
      (collectively the "Parties"),
      and
      agrees that from and after the date below, until this Exhibit A shall be
      superseded and replaced through agreement of the Parties or the Time Sharing
      Agreement shall be terminated pursuant to its terms, the Aircraft described
      below shall constitute the "Aircraft"
      described in and subject to the terms of the Time Sharing Agreement.

    

    

    Manufacturer's
      Serial Number - 1981 Cessna - Centurion P-210 

    

    FAA
      Registration Number - N168SQ

    

    Engine
      Model - Io-540 

    

    

    Dated:
      December 1, 2006

    
      

      
        	 	
                LESSEE:
                  

              
	 	 	 
	 	
                FIRSTGOLD
                  CORP.

              
	 
 	 
 	 
 
	 	By:  	/s/ James
                Kluber
	 	
                
James
                Kluber
	 	Its:
                Chief Financial Officer

      
        

        
          	 	
                  LESSOR:
                    

                
	 	 	 
	 
 	 
 	 
 
	 	By:  	/s/ A.
                  Scott
                  Dockter
	 	
                  
A.
                  SCOTT DOCKTER
	 	
                

        

      

      

    

    

    10Stock Purchase Agreement

     

    Exhibit
      10.9

     

     

    STOCK
      PURCHASE AGREEMENT

     

     

    by
      and between

     

     

    RIVER
      HAWK AVIATION, INC.,

     

    a
      Nevada Corporation

     

     

    

     

     

    and

     

     

    

     

     

    SOUTHLAND
      HOLDING CORP.,

     

    a
      Nevada Corporation

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      STOCK PURCHASE AGREEMENT dated May 9, 2007, is by and among River Hawk Aviation,
      Inc., Nevada corporation (“River Hawk”) and Southland Holding Corp., a Nevada
      corporation (“Southland”) (the “Agreement”).

    

    WHEREAS,
      River Hawk desires to sell all of its equity interests held in Eastern Caribbean
      Airlines Corporation (“EC Air”) and Viva
      Air
      Dominicana, S.A. (“VAD”) (collectively, the “Subsidiary Shares”) on the terms
      and subject to the conditions set forth herein; 

    

    WHEREAS,
      Southland desires to purchase all of the Subsidiary Shares held by River Hawk
      on
      the terms and subject to the conditions set forth herein; 

    

    WHEREAS,
      the purchase price paid by Southland for the Subsidiary Shares will be the
      assumption of certain liabilities including, but not limited to, current and
      future litigation;

    

    WHEREAS,
      Southland, its authorized agent, Tom Jolitz (“Mr. Jolitz”), and River Hawk
      (collectively, the “Parties”) desire to resolve any claims between themselves,
      including, but not limited to, all issues between themselves with respect to
      Mr.
      Jolitz’s association with River Hawk (collectively, the “Settlement Issues”);
      and 

    

    WHEREAS,
      it is intended that this Agreement be construed in the broadest possible manner,
      in accordance with the Parties’ express intention that all disputes between them
      arising out of or in any way connected to the Settlement Issues be forever
      resolved. 

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual and independent
      covenants hereinafter set forth, the parties hereto agree as
      follows:

     

    ARTICLE
      I

    AMOUNT
      AND TERMS OF PURCHASE

     

    1.1    Sale
 As
      consideration for receiving the Subsidiary Shares, and subject to the terms
      and
      conditions hereof, Southland hereby agrees to assume those liabilities of River
      Hawk, EC Air and VAD listed on Schedules 1.1 through 1.6 (the “Assumed
      Liabilities”). Southland also agrees to assume responsibility for all current
      and future litigation matters where EC Air and/or VAD is or may be a party.
      

    
1.2    Closing
      Date

    The
      sale
      of the Subsidiary Shares shall take place on May 16, 2007 at the offices of
      River Hawk, 954 Business Park Drive, Suite 4, Traverse City, MI 49686 or another
      location at River Hawk’s request (the “Closing”).

     

    1.3    Conditions
      Precedent to Closing by Southland

    The
      obligations hereunder of Southland to receive the Subsidiary Shares are subject
      to the satisfaction of each of the following conditions at or prior to Closing
      unless waived by Southland in writing:

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

       

    

    
      	1.3.1  	
              The
                representations and warranties of River Hawk contained in this Agreement
                shall be deemed to have been made at and as of the Closing and shall
                then
                be true in all material respects.

            

       

    

    
      	1.3.2  	
              River
                Hawk
                shall have performed and complied in all material respects with the
                agreements and conditions required by this Agreement to be performed
                or
                complied with prior to or at the Closing, including without limitation
                the
                delivery of documents referred to elsewhere in this Agreement as
                being
                required to be delivered prior to or at the
                Closing.

            

    

    

    
      	1.3.3  	
              Southland
                shall have received, in form and content satisfactory to Southland’s
                counsel, an Officer’s Certification executed by the Chief Executive
                Officer of River Hawk indicating that River Hawk has commenced the
                steps
                necessary to produce:

            

    

    

    
      	(a)  	
              Stock
                certificates duly executed by River Hawk evidencing ownership by
                Southland
                of that number of shares of EC Air common stock set out on Schedule
                1.7
                hereto; and

            

    

    

    
      	(b)  	
              Stock
                certificates duly executed by River Hawk evidencing ownership by
                Southland
                of that number of shares of VAD common stock set out on Schedule
                1.7
                hereto;

            

    

    

    
      	1.3.4  	
              As
                additional consideration for River Hawk entering into this Agreement,
                Southland, on behalf of itself, its officers, directors, shareholders,
                employees, affiliates, successors and assigns, hereby fully, forever,
                irrevocably and unconditionally settles, releases, remises and discharges
                River Hawk, and each of its former, current and future officers,
                directors, consultants, stockholders, attorneys, agents, spouses,
                administrators, employees, heirs, successors and assigns and all
                persons
                acting by, through, under, or in concert with them (the “River Hawk
                Released Parties”) from any and all claims, charges, complaints, demands,
                actions, causes of action, suits, rights, debts, sums of money, costs,
                accounts, reckonings, covenants, contracts, agreements, promises,
                doings,
                omissions, damages, executions, obligations, liabilities, and expenses
                (including attorneys’ fees and costs), of every kind and nature, known or
                unknown, which Southland ever had or now has, including, but not
                limited
                to, the Assumed Liabilities and all common law claims including,
                but not
                limited to, actions in tort, defamation, breach of contract, and
                any
                claims under federal, state or local statutes or ordinances not expressly
                referred to above.

            

    

     

    
1.4    Conditions
      Precedent to Closing by River Hawk

    The
      obligations hereunder of River Hawk to sell the Subsidiary Shares to Southland
      are subject to the satisfaction of each of the following conditions at or prior
      to Closing unless waived by River Hawk in writing:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    
      	1.4.1  	
              The
                representations and warranties of Southland contained in this Agreement
                shall be deemed to have been made at and as of the Closing and shall
                then
                be true in all material respects.

            

    

    

    
      	1.4.2  	
              Mr.
                Jolitz shall have entered into a shareholder agreement (the “Shareholder
                Agreement”), whereby certain convertible promissory notes (the “Notes”)
                held by Mr. Jolitz and/or Chesscom Consultants, Inc., convertible
                into
                shares of River Hawk’s common stock (the “Common Stock”), will be placed
                into an escrow account maintained by The Otto Law Group, PLLC, such
                that
                1) the Notes will be subject to certain restrictions on the amount
                of
                Common Stock which may be converted and sold per month; and 2) upon
                conversion of the Notes by Mr. Jolitz and/or his assigns into shares
                of
                Common Stock, Mr. Jolitz and/or his assigns, must give the right
                of first
                refusal to purchase the Common Stock at the conversion price to the
                following, in order: 1) River Hawk; and 2) River Hawk’s officers and board
                of directors.

            

    

    

    
      	1.4.3  	
              Southland
                shall have performed and complied in all material respects with the
                agreements and conditions required by this Agreement to be performed
                or
                complied with prior to or at the Closing, including without limitation
                the
                delivery of documents referred to elsewhere in this Agreement as
                being
                required to be delivered prior to or at the
                Closing.

            

    

    

    
      	1.4.4  	
              As
                additional consideration for Southland entering into this Agreement,
                River
                Hawk, on behalf of itself, its officers, directors, shareholders,
                employees, affiliates, successors and assigns, hereby fully, forever,
                irrevocably and unconditionally settles, releases, remises and discharges
                Southland, attorneys, agents, spouses, administrators, employees,
                heirs,
                successors and assigns and all persons acting by, through, under,
                or in
                concert with them (the “Southland Released Parties”) from any and all
                claims, charges, complaints, demands, actions, causes of action,
                suits,
                rights, debts, sums of money, costs, accounts, reckonings, covenants,
                contracts, agreements, promises, doings, omissions, damages, executions,
                obligations, liabilities, and expenses (including attorneys’ fees and
                costs), of every kind and nature, known or unknown, which River Hawk
                ever
                had or now has, including, but not limited to, all common law claims
                including, but not limited to, actions in tort, defamation, breach
                of
                contract, and any claims under federal, state or local statutes or
                ordinances not expressly referred to
                above.

            

    

     

    ARTICLE
      II

    REPRESENTATIONS
      AND WARRANTIES

    

    2.1     Representations
      and Warranties of River Hawk

    River
      Hawk hereby represents and warrants that the following are true and correct
      as
      of the date hereof:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	2.1.1  	
              Organization,
                Qualification and Corporate Power
                River Hawk is a corporation duly organized and existing in good standing
                under the laws of the State of Nevada without limit as to the duration
                of
                its existence and has corporate power and authority, rights and franchises
                to own its property and to carry on its business as now conducted.
                River
                Hawk has the corporate power and authority to make and carry out
                this
                Agreement and to issue the Subsidiary Shares as herein provided.
                River
                Hawk has the corporate power, permits and other authorizations necessary
                to own and operate its properties and, except where the failure to
                do so
                would not materially adversely affect River Hawk’s business, to carry on
                the business currently conducted by it, including all licenses, permits
                and authorizations of any and all applicable federal, state and local
                governmental agencies and is duly qualified as a foreign corporation
                authorized to do business and in good standing in each other jurisdiction
                in which such qualification and good standing may be required by
                applicable law.

            

    

    

    
      	2.1.2  	
              EC
                Air Common Stock
                The shares of EC Air Common Stock are not subject to preemptive rights
                and, when issued and sold at the Closing in accordance with this
                Agreement, will be duly and validly authorized, issued, outstanding,
                fully
                paid and non-assessable. The shares of EC Air Common Stock at Closing
                will
                be free of any and all encumbrances, claims or security interests
                whatsoever.

            

    

    

    
      	2.1.3  	
              VAD
                Common Stock
                The shares of VAD Common Stock are not subject to preemptive rights
                and,
                when issued and sold at the Closing in accordance with this Agreement,
                will be duly and validly authorized, issued, outstanding, fully paid
                and
                non-assessable. The shares of VAD Common Stock at Closing will be
                free of
                any and all encumbrances, claims or security interests
                whatsoever.

            

    

    

     

    
      	2.1.4  	
              Authorization
                of Agreement and Subsidiary Shares; Validity
                The execution, delivery and performance of this Agreement, and the
                sale of
                the Subsidiary Shares, have been duly authorized by River Hawk, EC
                Air and
                VAD and do not require the consent or approval of any governmental
                body or
                other regulatory authority of the United States or of any other party
                (except the issuance of the Subsidiary Shares may require notice
                filings
                under one or more state securities laws), and are not in contravention
                of
                or in conflict with any law or regulation of the United States, or
                of any
                state thereof, or any political subdivision of the foregoing, or
                any term
                or provision of the Certificate of Incorporation or Bylaws of River
                Hawk,
                EC Air or VAD. This Agreement is the valid, binding and legally
                enforceable obligation of River Hawk in accordance with its
                terms.

            

    

    

     

    
      	2.1.5  	
              Conflict
                The execution, delivery and performance of this Agreement, and the
                sale
                and delivery of the Subsidiary Shares, are not, in any material respect,
                in contravention of or in conflict with any material agreement, indenture
                or undertaking to which River Hawk is a party or by which it or any
                of its
                property may be bound or affected, and do not cause any security
                interest,
                lien or other encumbrance to be created or imposed upon any such
                property
                by reason thereof.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.2    Representations
      and Warranties of Southland

    
      	2.2.1  	
              Organization,
                Qualification and Corporate Power
                Southland is a corporation duly organized and existing in good standing
                under the laws of the State of Nevada without limit as to the duration
                of
                its existence and has corporate power and authority, rights and franchises
                to own its property and to carry on its business as now conducted.
                Southland has the corporate power and authority to make and carry
                out this
                Agreement as herein provided. Southland has the corporate power,
                permits
                and other authorizations necessary to own and operate its properties
                and,
                except where the failure to do so would not materially adversely
                affect
                River Hawk’s business, to carry on the business currently conducted by it,
                including all licenses, permits and authorizations of any and all
                applicable federal, state and local governmental agencies and is
                duly
                qualified as a foreign corporation authorized to do business and
                in good
                standing in each other jurisdiction in which such qualification and
                good
                standing may be required by applicable law.
                

            

       

      
        	2.2.2  	
                Authorization
                  of Agreement; Validity
                  Southland’s execution, delivery and performance of this Agreement has been
                  duly authorized by Southland and Southland has all requisite power
                  and
                  authority to enter into this Agreement, and such execution, delivery
                  and
                  performance is not in contravention of or in conflict with any
                  law or
                  regulation of the United States, or any political subdivision thereof,
                  or
                  any agreement or document binding upon Southland. This Agreement,
                  when
                  delivered, will be the valid, binding and legally enforceable obligation
                  of Southland in accordance with its
                  terms.

              

      

    

    
      	 	 

    

    
      	2.2.3  	
              Conflict
                The execution, delivery and performance of this Agreement is not
                in any
                material respect, in contravention of or in conflict with any material
                agreement, indenture or undertaking to which Southland is a party
                or by
                which its property may be bound or affected, and does not cause any
                security interest, lien or other encumbrance to be created or imposed
                upon
                any such property by reason
                thereof.

            

    

    

    
      	2.2.4  	
              Southland
                is an “Accredited Investor” as defined in Rule 501(a) of the Securities
                Act of 1933, as amended (the “Securities
                Act”).

            

    

    

    
      	2.2.5  	
              Southland
                has not been formed for the specific purpose of acquiring the Subsidiary
                Shares. 

            

    

    

    
      	2.2.6  	
              Southland
                understands that (i) the Subsidiary Shares have not been registered
                under
                the Securities Act by reason of their issuance in a transaction exempt
                from the registration requirements of the Securities Act pursuant
                to
                Section 4(2) thereof or any applicable state securities laws, (ii)
                the
                Subsidiary Shares must be held indefinitely unless a subsequent
                disposition thereof is registered under the Securities Act or is
                exempt
                from such registration and such state laws, (iii) the Subsidiary
                Shares
                will bear a legend to such effect and (iv) River Hawk, EC Air and
                VAD will
                make a notation on its transfer books to such
                effect.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    
      	2.2.7  	
              Southland
                understands that the exemption from registration afforded by Rule
                144
                under the Securities Act depends on the satisfaction of various conditions
                and that, if applicable, Rule 144 affords the basis of sales of the
                Subsidiary Shares in limited amounts under certain conditions and
                in
                unlimited amounts under certain
                conditions.

            

    

    

    
      	2.2.8  	
              Southland
                understands that no public market now exists for any of the securities
                issued by River Hawk and that there is no assurance that a public
                market
                will ever exist for the securities of EC Air and/or
                VAD.

            

    

    

    
      	2.2.9  	
              Southland
                has had a full opportunity to request from River Hawk, EC Air and
                VAD and
                to review and has reviewed all information which it deems relevant
                in
                making a decision to purchase the Subsidiary Shares and Southland
                will
                comply with any of the restrictions on transferability of the Subsidiary
                Shares.

            

    

    

    ARTICLE
      III

    COVENANTS

    3.1    Legend

    To
      assist
      in effectuating the provisions of Section 2.2.6, Southland hereby consents
      to
      the placement of the following legends:

    

    
      	3.1.1  	
              on
                all certificates certifying ownership of any shares of EC Air Common
                Stock
                or VAD Common Stock:

            

    

    

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 AND
      MAY
      NOT BE SOLD OR TRANSFERRED IN THE UNITED STATES OR ANY OF ITS TERRITORIES OR
      POSSESSIONS OR AREAS SUBJECT TO ITS JURISDICTION OR TO ANY PERSON WHO IS A
      NATIONAL, CITIZEN OR RESIDENT THEREOF OR PERSON NORMALLY RESIDENT THEREIN OR
      TO
      ANY PERSON PURCHASING FOR RESALE TO ANY SUCH PERSON IN THE ABSENCE OF SUCH
      REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT.
      IN
      ADDITION THE
      SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS OF A
      STOCKHOLDERS AGREEMENT AMONG THE COMPANY AND CERTAIN STOCKHOLDERS OF THE COMPANY
      AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED
      OF
      EXCEPT IN ACCORDANCE THEREWITH. A COPY OF SUCH AGREEMENT IS ON FILE AT THE
      OFFICE OF THE SECRETARY OF THE COMPANY.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    3.2    Indemnification

    

    
      	3.2.1  	
              Subject
                to the provisions of Section 4.1
                and of this Section 3.2,
                River Hawk, EC Air and VAD shall severally but not jointly indemnify
                and
                hold harmless Southland against all losses, liabilities, costs, reasonable
                legal fees and other expenses of River Hawk, EC Air and VAD and its
                partners, members, officers, directors and controlling persons resulting
                from any material breach of any warranty, representation, covenant,
                agreement or obligation of Southland contained herein (“River Hawk
                Damages”).

            

    

    

    
      	3.2.2  	
              Subject
                to the provisions of Section 4.1
                and of this Section 3.2,
                Southland shall severally but not jointly indemnify and hold harmless
                River Hawk, EC Air and VAD against all losses, liabilities, costs,
                reasonable legal fees and the expenses of Southland and its officers,
                directors and controlling persons resulting from any material breach
                of
                any warranty, representation, covenant, agreement or obligation of
                such
                one of River Hawk, EC Air and VAD contained herein (“Southland
                Damages”).

            

    

    

    
      	3.2.3  	
              Promptly
                after receipt by an indemnified party under this Section 3.2
                of
                a third party claim or notice of the commencement of any action (including
                any governmental action), such indemnified party will, if a claim
                in
                respect thereof is to be made against any indemnifying party under
                this
                Section 3.2,
                deliver to the indemnifying party a written notice thereof and the
                indemnifying party shall have the right to participate in and, to
                the
                extent the indemnifying party so desires, jointly with any other
                indemnifying party similarly notified, to assume the defense thereof
                with
                counsel mutually satisfactory to the indemnifying parties; provided,
                however, that an indemnified party (together with all other indemnified
                parties which may be represented without conflict by one counsel)
                shall
                have the right to retain one separate counsel, with the fees and
                expenses
                to be paid by the indemnifying party, if representation of such
                indemnified party by the counsel retained by the indemnifying party
                would
                be inappropriate due to actual or potential differing interests between
                such indemnified party and any other party represented by such counsel
                in
                such proceeding. The failure to deliver written notice to the indemnifying
                party within a reasonable time of the commencement of any such action,
                if
                materially prejudicial to its ability to defend such action, shall
                relieve
                such indemnifying party of any liability to the indemnified party
                under
                this Section 3.2,
                but the omission so to deliver written notice to the indemnifying
                party
                will not relieve it of any liability that it may have to any indemnified
                party otherwise than under this Section 3.2.

            

    

    

    
      	3.2.4  	
              The
                indemnifying party shall advance the expenses of the indemnified
                party as
                they are incurred, provided that the indemnified party shall give
                the
                indemnifying party an undertaking to reimburse the indemnifying party
                for
                any amounts so advanced should it be determined that indemnification
                is
                not available under this Section 3.2.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	3.2.5  	
              If
                the indemnification provided for in this Section 3.2
                is
                held by a court of competent jurisdiction to be unavailable to an
                indemnified party with respect to any loss, liability, claim, damage
                or
                expense referred to herein, then the indemnifying party, in lieu
                of
                indemnifying such indemnified party hereunder, shall contribute to
                the
                amount paid or payable by such indemnified party as a result of such
                loss,
                liability, claim, damage or expense in such proportion as is appropriate
                to reflect the relative fault of the indemnifying party on the one
                hand
                and of the indemnified party on the other in connection with the
                breach of
                any warranty, representation, covenant, agreement or obligation that
                resulted in such loss, liability, claim, damage or expense as well
                as any
                other relevant equitable
                considerations.

            

    

    

    
      	3.2.6  	
              A
                claim for indemnity shall be effective only after the aggregate amount
                of
                River Hawk Damages or Southland Damages, as the case may be, exceeds
                $50,000.

            

    

    

    ARTICLE
      IV

    MISCELLANEOUS

    4.1    Survival
      and Expiration of Representations and Warranties

    The
      representations and warranties made herein shall survive the execution and
      delivery of this Agreement and the Closing for a period of eighteen months
      from
      the date of Closing unless notice of a claim thereunder shall have been given
      by
      one party to the other within such eighteen month period. 

     

    4.2    No
      Waiver of Rights

    No
      failure or delay on the part of any party in the exercise of any power, right
      or
      privilege hereunder shall operate as a waiver thereof, nor shall any single
      or
      partial exercise of any such power, right or privilege preclude other or further
      exercise thereof or of any other right, power or privilege. All rights and
      remedies existing under this Agreement are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

    
4.3    Notice

    Any
      notice herein required or permitted to be given shall be in writing and may
      be
      sent by hand delivery, facsimile, email or registered or certified mail, return
      receipt requested, and shall be deemed to have been given: if by hand delivery,
      on the date of delivery; if by facsimile or email, on the business day after
      transmission thereof to the proper facsimile number or email address; or if
      mailed, on the date indicated as the date of delivery on the return receipt
      or
      the date of attempted delivery if refused. For purposes hereof, the addresses
      of
      the parties hereto (until notice of a change thereof is given as provided in
      this Section 4.3)
      shall
      be as follows:

    To
      Southland Holding Corp.: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	
              With
                a copy to:

            
	 	 
	
              Thomas
                Jolitz

            	
              Robert
                Creighton

            
	
              417
                Barlow St.

            	
              P.O.
                Box 1494

            
	
              Traverse
                City, MI 49686

            	
              Stephens
                City, VA 22655

            
	
              Telephone:
                (206) 262-9545

            	
              Telephone:
                (540) 869-0124

            
	 	
              Facsimile:
                 
                (866) 580-4250

            
	 	 
	 	
              The
                Otto Law Group, PLLC

            
	 	
              Attn:
                David M. Otto

            
	 	
              601
                Union St., Suite 4500

            
	 	
              Seattle,
                WA 98101

            
	 	
              Telephone:
                (206) 262-9545

            
	 	
              Facsimile:
                (206) 262-9513

            
	 	 
	
              To
                River Hawk Aviation, Inc.:

            	
              With
                a copy to:

            
	 	 
	
              River
                Hawk Aviation, Inc.

            	
              The
                Otto Law Group, PLLC

            
	
              Attn:
                Cal Humphrey

            	
              Attn:
                David M. Otto

            
	
              954
                Business Park Drive, Suite 4

            	
              601
                Union St., Suite 4500

            
	
              Traverse
                City, MI 49686

            	
              Seattle,
                WA 98101

            
	
              Telephone:
                (231) 946-4343

            	
              Telephone:
                (206) 262-9545

            
	 	
              Facsimile:
                (206) 262-9513 

            

    

     

    4.4     Governing
      Law

    This
      Agreement shall be construed and enforced in accordance with the laws of
United
      States and the State of Washington (as applicable),
      without
      regard to the rules governing conflict of laws.

    
4.5    Counterpart
      Originals

    This
      Agreement may be executed simultaneously in two or more counterparts each of
      which shall be deemed an original but all of which together shall constitute
      one
      and the same instrument.

    

    4.6     Consent
      to
      Jurisdiction

    The
      Parties agree to submit any claim, suit or proceeding hereunder to the
      jurisdiction of the courts of the State of Washington located in King County,
      and further consent to waive their right to trial by jury in any such
      action.

    

    4.7     Assignment;
      Successors

    No
      party
      may assign this Agreement without the written consent of the other
      parties.

    
4.8    Pronouns

    Whenever
      pronouns are used herein, they shall be interpreted in the neuter, masculine,
      feminine, singular or plural as the context may require.

    
4.9    Further
      Assurances

    The
      parties hereto agree that, from time to time hereafter, and upon request, each
      of them will execute, acknowledge and deliver such other documents and
      instruments as may be reasonably required more effectively to carry out the
      terms and conditions of this Agreement.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	4.10  	
              Entire
                Agreement

            

    

    This
      Agreement, together with the other agreements referred to herein, constitutes
      the entire agreement among the parties pertaining to the subject matter hereof
      and supersedes all prior and contemporaneous agreements, representations and
      understandings of the parties.

    

    Dated
      as
      of the date first written above in Traverse City, Michigan.

    

    River
      Hawk Aviation, Inc., Southland
      Holding Corp.

     

    

      
        	
                By:

              	
                /s/
                  Cal Humphrey

              	
                By:

              	
                /s/
                  Thomas Jolitz   

              
	 	
                Name:
                  Cal Humphrey

              	 	
                Name:
                  Thomas Jolitz

              
	 	
                Title:
                  Chief Executive Officer

              	 	
                Title:
                  Authorized Agent

              
	 	 	 	 
	 	 	 	
                 

              
	 	 	
                By:

              	
                /s/
                  Robert Creighton

              
	 	 	 	
                Name:
                  Robert Creighton

              
	 	 	 	
                Title:
                  President

              

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

    Schedule
      1.1

    Schedule
      of Liabilities of Eastern Caribbean Corporation

    

    
      	
              Accounts
                Payable/Creditor

            	 	
              Approximate
                Amount

            	 
	
              Accrued
                Expenses and Reserves

            	 	
              $

            	
              39,423.56

            	 
	
              Saba
                Santos

            	 	
              $

            	
              181.63

            	 
	
              Accrued
                Payroll

            	 	
              $

            	
              16,166.11

            	 
	
              Accrued
                Interest

            	 	
              $

            	
              1,451.60

            	 
	
              Chesscom
                Consultants, Inc.

            	 	
              $

            	
              14,580.00

            	 
	
               

            	 	 	
              
              

            	 
	
              Total
                

            	 	
              $

            	
              71,802.90

            	 

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      1.2

    Schedule
      of Liabilities of Viva Air Dominicana, S.A.

    

    
      	
              Accounts
                Payable/ Creditor

            	
               

            	
               

            	
              Approximate
                Amount

            	
               

            
	
              Accrued
                payroll taxes

            	
               

            	
              $

            	
              6,590.71

            	
               

            
	
              Accrued
                payroll

            	
               

            	
              $

            	
              13,713.81

            	
               

            
	
              Payable
                to Chesscom Consultants, Inc.

            	
               

            	
              $

            	
              25,360.00

            	
               

            
	
              Payable
                to Thomas Jolitz

            	
               

            	
              $

            	
              858.63

            	
               

            
	
              Accrued
                interest expense

            	
               

            	
              $

            	
              2,501.86

            	
               

            
	
               

            	
               

            	
               

            	
               

            	
               

            
	
              Total
                

            	
               

            	
              $

            	
              49,025.01

            	
               

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Schedule
      1.3

    Schedule
      of Liabilities of Viva International, Inc. 

    

    
      	
              Creditor

            	
               

            	
               

            	
              Approximate
                Amount

            
	
              Current
                Payables

            	
               

            	
               

            	
               

            
	
               

            	
              Daryl
                Prior

            	
               

            	
              $2,033.89
                

            
	
               

            	
              Francisco
                Troncoso

            	
               

            	
              $15,542.53
                

            
	
               

            	
              Print
                Masters

            	
               

            	
              $1,838.98
                

            
	
               

            	
              Sky
                Vantage

            	
               

            	
              $12,095.00
                

            
	
               

            	
              Sylvain
                Cloutier

            	
               

            	
              $402.33
                

            
	
               

            	
              Wall
                Street Worldwide

            	
               

            	
              $298.74
                

            
	
               

            	
              Ronald
                Greene

            	
               

            	
              $45,000.00

            
	
               

            	
              Khali
                Berry

            	
               

            	
              $9,250.00

            
	
               

            	
              Cynthia
                Rosario

            	
               

            	
              $12,250.00

            
	
               

            	
              E.
                Thomas Septembre 

            	
               

            	
              $90,742.501 

            
	
               

            	
              Syed
                Hasan

            	
               

            	
              $78,360.002 

            
	
               

            	
              Rodolfo
                Dominguez 

            	
               

            	
              $46,875.003 

            
	
               

            	
               

            	
              Sub-Total

            	
              $314,688.97

            
	
               

            	
               

            	
               

            	
               

            
	
              Older
                Payables

            	
               

            	
               

            	
               

            
	
               

            	
              As
                per schedule 1.4

            	
              Sub-Total

            	
              $272,879.73

            
	
               

            	
               

            	
               

            	
               

            
	
              Adjustments

            	
               

            	
               

            	
               

            
	
               

            	
              Accrued
                rents for offices and hangars in Puerto Rico

            	
               

            	
              $1,000.00

            
	
               

            	
              Francisco
                Troncoso

            	
               

            	
              $9,986.13

            
	
               

            	
              Jessica
                Torres

            	
               

            	
              $25,000.00

            
	
               

            	
               

            	
              Sub-Total

            	
              $35,986.13

            
	
               

            	
               

            	
               

            	
               

            
	
              Total
                

            	
               

            	
               

            	
              $623,554.83

            

    

    

    _______________________________________

    
      
        1
          Southland has agreed to assume 50% of the total amount of the settled claim
          with
          Mr. Septembre, up to a maximum amount of $90,742.50. 

      

      
        2
          Southland has agreed to assume 50% of the total amount of the settled claim
          with
          Mr. Hasan, up to a maximum amount of $78,360.00. 

      

      
        3
          Southland has agreed to assume 50% of the total amount of the settled claim
          with
          Mr. Dominquez, up to a maximum amount of
          $46,875.00.

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Schedule
      1.4

    Schedule
      of Miscellaneous Liabilities

    

    
      	
              Creditor

            	
               

            	
              Estimated
                Amount

            
	
              Michael
                Agnew/Thomas Aviation

            	
               

            	
              $35,000.00
                

            
	
              Sheltair
                Aviation/Ft. Lauderdale

            	
               

            	
              $10,691.16
                

            
	
              SG
                Martin & Related Parties

            	
               

            	
              $75,000.00
                

            
	
              Toro,
                Colon & Mullet

            	
               

            	
              $3,822.68
                

            
	
              Pascuala
                Bonilla

            	
               

            	
              $39,075.00
                

            
	
              Claudia
                Malek

            	
               

            	
              $3,963.00
                

            
	
              Robert
                Koziol

            	
               

            	
              $30,796.00
                

            
	
              Luis
                Irizarry

            	
               

            	
              $38,500.00
                

            
	
              Sheltair
                Aviation/Puerto Rico

            	
               

            	
              $3,000.00
                

            
	
              Isle
                Grande Flying School

            	
               

            	
              $2,407.92
                

            
	
              EX
                Tax Service

            	
               

            	
              $1,350.00
                

            
	
              Puerto
                Rico Telephone

            	
               

            	
              $958.12
                

            
	
              DGAC

            	
               

            	
              $15,000.00
                

            
	
              Communidad
                do Inquillinos

            	
               

            	
              $1,209.02
                

            
	
              Luis
                Vargas

            	
               

            	
              $674.22
                

            
	
              Verizon

            	
               

            	
              $236.51
                

            
	
              Jam
                & Sons, Inc.

            	
               

            	
              $7,800.00
                

            
	
              Autoridad
                De Energia

            	
               

            	
              $88.10
                

            
	
              Nat.
                Assoc. of Drug Free

            	
               

            	
              $1,074.00
                

            
	
              USIC

            	
               

            	
              $750.00
                

            
	
              Expressway
                Graphics

            	
               

            	
              $1,130.00
                

            
	
              DHL/Puerto
                Rico

            	
               

            	
              $323.00
                

            
	
              USPS-Puerto
                Rico

            	
               

            	
              $31.00
                

            
	
               

            	
               

            	
               

            
	
              Total
                

            	
               

            	
              $272,879.73

            

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    Schedule
      1.5

    Recorded
      Consultant Fees to Thomas Jolitz

    

    
      	
              Year

            	 	
              Estimated
                Amount

            
	
              2003

            	 	
              $172,500

            
	
              2004

            	 	
              $180,000

            
	
              2005

            	 	
              $180,000

            
	
              2006

            	 	
              $105,000

            
	
              Sub-total

            	 	
              $637,500

            
	
              Credit
                (S-8 stock)

            	
              $120,000

            	
            
	
              Net
                Total

            	 	
              $517,500

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      1.6

    Schedule
      of Litigation Issues and Expenses to be assumed by Southland

    

    
      	
              Litigation

            	
              Estimated
                Amount in Controversy

            
	
              Ivan
                Figueroa v. Eastern Caribbean Airlines Corporation and Viva International,
                Inc.

            	
              $5,000,000.004 

            
	
              TOTAL

            	
              $5,000,000.00

            

    

     

     

    ______________________________________________

    
      4
        Southland agrees to indemnify River Hawk for any amounts it pays resulting
        from
        this litigation. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    Schedule
      1.7

    

    
      	
              Entity

            	
              Number
                of Shares held by River Hawk

            	
              Percentage
                of Total Issued and Outstanding

            
	
              Eastern
                Caribbean Airlines Corporation

            	
              41,067,944

            	
              100%

            
	
              Viva
                Air Dominicana, S.A.

            	
              14,700*

            	
              49%

            

    

    

    *Represented
      by 7,350 shares held by Robert James Scott and 7,350 shares held by Hasan Syed
      Asghar Hasnain

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]