Document:

exv10w24

 

Exhibit 10.24

STOCK OPTION AGREEMENT

GULFSTREAM ACQUISITION GROUP, INC.

          THIS
AGREEMENT, made this ___ day of                     , 20___, by and between Gulfstream Acquisition
Group, Inc. (“Company”), and                                          (“Optionee”),

          WITNESSETH THAT:

          WHEREAS, the Board of Directors of the Company (“Board of Directors”) has adopted the
Gulfstream Acquisition Group, Inc. Stock Incentive Plan (the “Plan”) pursuant to which options to
purchase shares of the Common Stock of the Company may be granted to employees, directors and
consultants of the Company, a parent or subsidiary, as such terms are defined in the Plan; and

          WHEREAS, Optionee is an employee of the Company; and

          WHEREAS, the Company desires to grant to Optionee the option to purchase certain shares of its
stock under the terms of the Plan, which option is intended to qualify as an incentive stock option
within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (“Code”)
(hereinafter referred to as an “Incentive Stock Option”); and

          NOW, THEREFORE, in consideration of the premises and of the mutual agreements hereinafter set
forth, it is covenanted and agreed as follows:

          1. Grant Subject to Plan. This option is granted under and is expressly subject to
all the terms and provisions of the Plan, and the terms of the Plan are incorporated herein by
reference. Optionee acknowledges receipt of a copy of the Plan and agrees to be bound by all the
terms and provisions of the Plan. Terms not defined in this agreement shall have the meaning
ascribed thereto in the Plan.

          2. Grant and Terms of Option. Pursuant to action of the Board of Directors, which
action was taken on January 27, 2007 (“Date of Grant”), the Company grants to Optionee the option
to purchase all or any part of one thousand (1,000) shares of the common stock of the Company, of
the par value of $0.001 per share (“Common Stock”), for a period of ten (10) years from the Date of
Grant, at a purchase price of ten dollars ($10.00) per share, provided, however, that the right to
exercise such option shall be, and is hereby, restricted as follows:

          (a) At any time during the term of this option on or after the Date of Grant, Optionee
may purchase up to 20% of the total number of shares to which this option relates; that at
any time during the term of this option on or after January 25, 2008, Optionee may purchase
up to an additional 20% of the total number of shares to which this option relates; that at
any time during the term of this option on or after January 25, 2009, Optionee may purchase
up to an additional 20% of the total number of shares to which this option relates; that at
any time during the term of this option on or after January 25, 2010, Optionee may purchase
up to an additional 20% of the total number of shares to which this option relates; and that
at any time on or after January 25, 2011, Optionee may purchase up to an additional 20% of
the total number of shares to which this option relates; so that on or after January 25,
2011, during the term hereof, Optionee will have become entitled to purchase the entire
number of shares to which this option relates.

 

 

          (b) Notwithstanding the above, in the event of a Change in Control, as defined in the
Plan, Optionee may purchase 100% of the total number of shares to which this option relates.

          (c) In no event may this option or any part thereof be exercised after the expiration
of ten (10) years from the Date of Grant.

          (d) The purchase price of the shares subject to the option may be paid for (i) in cash,
(ii) in the discretion of the Committee, by tender of shares of Common Stock already owned
by Optionee for a period of at least six months as of the date of tender and registered in
his or her name, and having a fair market value equal to the cash exercise price of the
Option being exercised, or (iii) in the discretion of the Committee, by a combination of
methods of payment specified in clauses (i) and (ii), all in accordance with Section 6 of
the Plan.

          (e) No shares of Common Stock may be tendered in exercise of this option if such shares
were acquired by Optionee through the exercise of an Incentive Stock Option, unless (i) such
shares have been held by Optionee for at least one year, and (ii) at least two years have
elapsed since such Incentive Stock Option was granted.

          3. Anti-Dilution Provisions. In the event that, during the term of this Agreement,
there is any change in the number of shares of outstanding Common Stock of the Company by reason of
stock dividends, recapitalizations, mergers, consolidations, split-ups, combinations or exchanges
of shares and the like, the number of shares covered by this option agreement and the price thereof
shall be adjusted, to the same proportionate number of shares and price as in this original
agreement.

          4. Investment Purpose and Other Restrictions on Transfer. Optionee represents that,
in the event of the exercise by Optionee of the option hereby granted, or any part thereof, he or
she intends to purchase the shares acquired on such exercise for investment and not with a view to
resale or other distribution; except that the Company, at its election, may waive or release this
condition in the event the shares acquired on exercise of the option are registered under the
Securities Act of 1933, or upon the happening of any other contingency which the Company shall
determine warrants the waiver or release of this condition. Optionee agrees that the certificates
evidencing the shares acquired by him or her on exercise of all or any part of this option, may
bear a restrictive legend, if appropriate, indicating that the shares have not been registered
under said Act and are subject to restrictions on the transfer thereof, which legend may be in the
following form (or such other form as the Company shall determine to be proper), to-wit:

“The shares represented by this certificate have not been registered under the
Securities Act of 1933, but have been issued or transferred to the registered owner
pursuant to the exemption afforded by Section 4(2) of said Act. No transfer or
assignment of these shares by the registered owner shall be valid or effective, and
the issuer of these shares shall not be required to give any effect to any transfer
or attempted transfer of these shares, including without limitation, a transfer by
operation of law, unless (a) the issuer shall have received an opinion of its
counsel that the shares may be transferred without requirement of registration under
said Act, or (b) there shall have been delivered to the issuer a ‘no-action’ letter
from the staff of the Securities and Exchange Commission, or (c) the shares are
registered under said Act.”

          In addition to the restrictions described above, Optionee may not sell, pledge, transfer,
donate, assign or otherwise dispose of (collectively, “transfer”), whether voluntarily or by
operation of

 

 

law, any shares of Common Stock acquired pursuant to the exercise of an option under this
Agreement except as provided in this Section 4.

          (a) Right of First Refusal.

          (1) If the Optionee intends to transfer any shares of Common Stock pursuant to
a bona fide purchase offer of an offeror (“Offeror”), the Optionee shall deliver to
the Company a written notice (the “Notice”) of such intention to transfer such
shares, setting forth in reasonable detail: (i) the proposed price, (ii) the number
of shares proposed to be transferred, (iii) the other terms and conditions of the
proposed transfer of such shares, (iv) an offer to sell the shares to the Company as
provided herein and (v) the identity of the Offeror. The shares proposed to be
transferred are hereinafter referred to as the “Offered Shares.”

          (2) The Company may elect to purchase all (but not less than all) of the
Offered Shares at any time during the thirty (30) day period following its receipt
of the Notice. The Company shall be entitled to purchase the Offered Shares from
the Optionee at the same price and on the same terms and conditions as those
pursuant to which the Optionee proposes to transfer the Offered Shares, as described
in the Notice. If the Company fails to respond to such offer within the 30-day
period, it shall be deemed to have rejected the offer.

          (3) Unless the Optionee and the Company otherwise agree, the closing of the
purchase of the Offered Shares shall take place at the principal offices of the
Company at 10:00 a.m. on the tenth day (or if such day is not a business day on the
next business day) after the expiration of the 30-day period. At the closing, the
Optionee shall tender the Offered Shares, together with appropriate instruments of
transfer endorsed to the Company, and the Company shall tender a certified check,
cashier’s check or a wire transfer of immediately available funds in the amount of
the purchase price therefor.

          (4) If the Offered Shares are not purchased by the Company pursuant to this
Section 4, the Optionee shall be entitled to sell all of the Offered Shares to the
Offeror at the price and on the terms and conditions specified in the Notice,
provided that such sale is consummated within one-hundred twenty (120) days from the
date the Notice is delivered to the Company. For any sale of shares after such
one-hundred twenty (120) day period, the Optionee shall give a new notice which
shall reinstate the rights of the Company set forth in this Section 4 to purchase
the Offered Shares.

          (b) Take-Along Rights. If an offeror desires to purchase all of the
outstanding shares of Common Stock and if the owners of at least 50% of the outstanding
shares desire to make such sale, the Optionee agrees to sell all of his or her shares to
such offeror on the terms and conditions approved by the owners of at least 50% of the
outstanding shares.

          (c) Effect of Prohibited Transfer. If any transfer of shares is made or
attempted by an Optionee other than in accordance with the terms of this Agreement, the
Company may refuse for any purpose to recognize any transferee who receives shares and any
such transferee shall have no right to claim or retain any dividends on such shares which
were paid or become payable subsequent to the date on which the prohibited transfer was made
or

 

 

attempted. In addition to any other legal or equitable rights that it may have, the
Company may enforce its rights by specific performance to the extent permitted by law.

          (d) Buy-Back Rights. If the Optionee terminates employment for any reason, the
Optionee must, upon request by the Committee, offer to sell his or her shares of Common
Stock to the Company at a price equal to the Fair Market Value of such shares of Common
Stock on the date of such sale. The Company may exercise the buy-back right with respect to
the Optionee no later than twelve (12) months after the date the Optionee terminates
employment.

          (e) Exceptions to Transfer Restrictions. Notwithstanding anything to the
contrary in this Agreement, the restrictions upon transfer set forth in this Section 4 shall
not apply to a transfer of shares of Common Stock by an Optionee to any of (i) the
Optionee’s heirs, executors, administrators or other personal representative upon death of
the Optionee or (ii) the Optionee’s spouse, children or grandchildren, or a trust for their
or the Optionee’s benefit; provided that, the restrictions on transfer in this Section 4
shall continue to apply to the shares received by any such permitted transferee, including
without limitation that such permitted transferee shall not again transfer such shares
except in accordance with this Section 4.

               (f) Termination of Transfer Restrictions. The restrictions described in Sections 4(a)
through 4(e) shall terminate on the earlier of a Public Offering of shares of Common Stock or
mutual agreement of the parties to this Agreement.

          5. Non-Transferability. Neither the option hereby granted nor any rights thereunder
or under this Agreement may be assigned, transferred or in any manner encumbered except by will or
the laws of descent and distribution, and any attempted assignment, transfer, mortgage, pledge or
encumbrance except as herein authorized, shall be void and of no effect. The option may be
exercised during Optionee’s lifetime only by Optionee or his or her guardian or legal
representative.

          6. Termination of Employment. In the event of the termination of employment of
Optionee other than by death, Optionee may exercise the option, to the extent he or she was
entitled to exercise it on the date of termination of employment, at any time within three (3)
months after such termination, but not after ten (10) years from the Date of Grant. If Optionee
terminates employment on account of disability, his or her option shall become fully vested (if not
already fully vested) and he or she may exercise such option at any time within one year of the
termination of his or her employment, but not after ten (10) years from the Date of Grant. For
this purpose, Optionee shall be deemed to be disabled if he or she is permanently and totally
disabled within the meaning of Section 422(c)(6) of the Code, which, as of the date hereof, shall
mean that he or she is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or
which has lasted or can be expected to last for a continuous period of not less than 12 months.
Optionee shall be considered disabled only if he or she furnishes such proof of disability as the
Committee may require.

          7. Death of Optionee. In the event of the death of Optionee during the term of this
Agreement and while he or she is employed by the Company (or its Parent or a Subsidiary), or within
three (3) months after the termination of his or her employment (or one year in the case of the
termination of employment of an Optionee who is disabled as provided in Section 6 above), this
option shall become fully vested (if not already fully vested) and may be exercised by a legatee or
legatees of Optionee under his or her last will, or by his or her personal representatives or
distributees, at any time within a period of one year after his or her death, but not after ten
(10) years from the Date of Grant, and only if he or she was entitled to exercise the option at the
date of his or her death.

 

 

          8. Shares Issued on Exercise of Option. It is the intention of the Company that on
any exercise of this option it will transfer to Optionee shares of its authorized but unissued
stock or transfer Treasury shares, or utilize any combination of Treasury shares and authorized but
unissued shares, to satisfy its obligations to deliver shares on any exercise hereof.

          9. Committee Administration. This option has been granted pursuant to a determination
made by the Board of Directors. The Board of Directors has appointed a Committee referred to in
Section 4 of the Plan, and such Committee or any successor or substitute committee authorized by
the Board of Directors or the Board of Directors itself, subject to the express terms of this
option, shall have plenary authority to interpret any provision of this option and to make any
determinations necessary or advisable for the administration of this option and the exercise of the
rights herein granted, and may waive or amend any provisions hereof in any manner not adversely
affecting the rights granted to Optionee by the express terms hereof.

          10. Option an Incentive Stock Option. It is intended that this option shall be
treated as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as
amended.

          11. No Contract of Employment. Nothing contained in this Agreement shall be
considered or construed as creating a contract of employment for any specified period of time.

          12. Severability. Any word, phrase, clause, sentence or other provision herein which
violates or is prohibited by any applicable law, court decree or public policy shall be modified as
necessary to avoid the violation or prohibition and so as to make this Agreement enforceable as
fully as possible under applicable law, and if such cannot be so modified, the same shall be
ineffective to the extent of such violation or prohibition without invalidating or affecting the
remaining provisions herein.

          13. Non-Waiver of Rights. The Company’s failure to enforce at any time any of the
provisions of this agreement or to require at any time performance by Optionee of any of the
provisions hereof shall in no way be construed to be a waiver of such provisions or to affect
either the validity of this agreement, or any part hereof, or the right of the Company thereafter
to enforce each and every provision in accordance with the terms of this agreement.

          14. Entire Agreement; Amendments. No modification, amendment or waiver of any of the
provisions of this agreement shall be effective unless in writing specifically referring hereto,
and signed by the parties hereto. This agreement supersedes all prior agreements and
understandings between Optionee and the Company to the extent that any such agreements or
understandings conflict with the terms of this agreement.

          15. Assignment. This agreement shall be freely assignable by the Company to and shall
inure to the benefit of, and be binding upon, the Company, its successors and assigns and/or any
other entity which shall succeed to the business presently being conducted by the Company.

          16. Choice of Forum and Governing Law. In light of the parties’ interests in ensuring
that disputes regarding the interpretation, validity and enforceability of this agreement are
resolved on a uniform basis, the parties agree that: (i) any litigation, validity and/or
enforceability of the agreement, shall be filed and conducted exclusively in the state or federal
courts in the State of Delaware; and (ii) the agreement shall be interpreted in accordance with and
governed by the laws of the State of Delaware, without regard for any conflict of law principles.

 

 

          IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by the
undersigned officer pursuant to due authorization, and Optionee has signed this Agreement to
evidence his or her acceptance of the option herein granted and of the terms hereof, all as of the
date hereof.

	 	 	 	 	 	 	 
	 	 	GULFSTREAM ACQUISITION GROUP, INC.
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	                                                             Chairman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 
	 	 	                                                             Optioneeexv10w25

 

Exhibit 10.25

EXECUTIVE EMPLOYMENT AGREEMENT

     THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of this
14th day of March, 2006 (the “Effective Date”), between GULFSTREAM INTERNATIONAL AIRLINES, INC., a
Florida corporation, whose principal place of business is 3201 Griffin Road, Dania, Florida 33004
and any of its successors or affiliated companies (collectively, the “Company”) and THOMAS L.
COOPER, an individual whose business address is 3201 Griffin Road, Dania, Florida 33004 (the
“Executive”).

RECITALS

     A. The Company is principally engaged in the business of commercial passenger flight
operations and incidental cargo operations by an “air carrier” under Federal Aviation Regulation
Part 121 (the “Business”) in Florida, the Bahamas and certain portions of Cuba, as described below.

     B. The Company presently employs the Executive and desires to continue to employ the Executive
and the Executive desires to continue in the employ of the Company.

     C. The Company has established a valuable reputation and goodwill in its business, with
expertise in all aspects of the Business.

     D. The Executive, by virtue of the Executive’s employment with the Company, has become
familiar with and possessed with the manner, methods, trade secrets and other confidential
information pertaining to the Company’s business.

     E. The Executive has previously been employed by the Company subject to the terms of that
certain Executive Employment Agreement, dated August 7, 2003 (the “Prior Employment Agreement”), by
and between the Company and the Executive.

AGREEMENT

     NOW, THEREFORE, for and in consideration of the mutual agreements herein made, the parties
hereto agree as follows:

     1. Recitals. The above recitals are true, correct and are herein incorporated by reference.

     2. Employment. The Company employs the Executive and the Executive hereby accepts employment
upon the terms and conditions hereinafter set forth.

     3. Authority and Power During Employment Period.

          a. Duties and Responsibilities. During the term of this Agreement, the Executive shall serve
as Chief Executive Officer of the Company and shall have general executive operating supervision
over the property, business and affairs of the Company, its subsidiaries and divisions, subject to
the guidelines and direction of the Board of Directors of the Company (the “Board of Directors”).

 

 

          b. Time Devoted. Throughout the Term (defined below) the Executive shall devote necessary
time and attention to the business and affairs of the Company consistent with the Executive’s
senior executive position with the Company, except for reasonable vacations and except for illness
or incapacity, but nothing in this Agreement shall preclude the Executive from engaging in personal
business including as a member of the board of directors of related companies, charitable and
community affairs, provided that such activities do not interfere with the regular performance of
the Executive’s duties and responsibilities under this Agreement.

     4. Term. The initial term of employment hereunder (the “Initial Term”) will commence on the
date as set forth above and terminate one (1) year from the Effective Date and such term shall
automatically be extended for each successive year thereafter (each a “Renewal Term” and
collectively with the Initial Term, the “Term”) unless (a) the parties mutually agree in writing to
alter or amend the terms of the Agreement; or (b) one or both of the parties exercises their right,
pursuant to Section 6 below, to terminate this employment relationship.

     5. Compensation and Benefits.

          a. Base Compensation. For all services rendered by the Executive pursuant to the terms of
this Agreement and in consideration of the execution of this Agreement by the Executive, the
Company shall pay to Executive a base salary of One Hundred Thousand Dollars ($100,000) per year,
to be increased from time to time to reflect changes in the Consumer Price Index or at the
discretion of the Board of Directors, to be paid in equal twenty-six (26) bi-weekly installments or
otherwise consistent with routine payroll practice of the Company (the “Compensation”).

          b. Executive Benefits. The Executive shall be entitled to participate in all benefit programs
of the Company currently existing or hereafter made available to executives and/or other salaried
employees, at the Executive’s sole option, including, but not limited to pension and other
retirement plans, group life insurance, hospitalization, surgical and major medical coverage, sick
leave, compensation continuation, vacation and holidays, cellular telephone and all related costs
and expenses, long-term disability, personal aircraft use, as determined by the Company and the
Executive from time to time, and other fringe benefits (collectively, the “Executive Benefits”).

          c. Vacation. During each fiscal year of the Term, the Executive shall be entitled to three
(3) weeks of paid vacation time and to utilize such vacation as the Executive shall determine;
provided, however, that the Executive shall exercise reasonable judgment with regard to appropriate
vacation scheduling.

          d. Business Expense Reimbursement. During the Term, the Executive shall be entitled to
receive proper reimbursement by the Company for all reasonable, out-of-pocket expenses incurred by
the Executive (in accordance with the policies and procedures established by the Company for its
senior executive officers) in performing services hereunder, provided the Executive properly
accounts therefor.

     6. Termination.

          a. Death. In the event of the death of the Executive during the Term, Compensation shall be
paid to the Executive’s designated beneficiary, or, in the absence of such designation, to the
estate or other legal representative of the Executive for a period of six (6) months from and after
the date of death.

          b. Disability.

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          (1) In the event of the Executive’s Disability, as hereinafter defined, the Executive shall be
entitled to compensation in accordance with the Company’s disability compensation practice for
senior executives, including any separate arrangement or policy covering the Executive, but in all
events the Executive shall continue to receive the Executive’s Compensation for a period, at the
annual rate in effect immediately prior to the commencement of Disability, of not less than six (6)
months from the date on which the Disability has been deemed to occur as hereinafter provided. Any
amounts provided for in this Section 6(b) shall not be offset by other long-term disability
benefits provided to the Executive by the Company.

          (2) “Disability,” for the purposes of this Agreement, shall be deemed to have occurred in the
event (A) the Executive is unable by reason of sickness, disease or accident to substantially
perform the Executive’s duties under this Agreement for an aggregate of six (6) months in any
12-month period; or (B) the Executive has a guardian of the person or estate appointed by a court
of competent jurisdiction. Termination due to Disability shall be deemed to have occurred upon the
first (1st) day of the month following the determination of Disability as defined in the
preceding sentence.

          (3) Anything herein to the contrary notwithstanding, if, following a termination of employment
hereunder due to Disability as provided in Section 6(b)(2), the Executive becomes re-employed,
whether as an executive or a consultant, any compensation, annual incentive payments or other
benefits earned by the Executive from such employment shall not be offset against any compensation
continuation due to the Executive hereunder.

          c. Termination by the Company for Cause.

          (1) Nothing herein shall prevent the Company from terminating the Executive for Cause (as
hereinafter defined). The Executive shall continue to receive Compensation only for the period
ending with the date of such termination as provided in this Section 6(c). Any rights and benefits
the Executive may have in respect of any other compensation shall be determined in accordance with
the terms of such other compensation arrangements or such plans or programs.

          (2) “Cause” means (A) repeated failure or refusal to reasonably cooperate with a governmental
investigation of the Company; (B) willfully committing or participating in any act or omission
which constitutes willful misconduct, fraud, misrepresentation, embezzlement or dishonesty that is
materially injurious to the Company; (C) committing or participating in any other injurious act or
omission wantonly, willfully, recklessly or in a manner which was grossly negligent that is
materially injurious to the Company, monetarily or otherwise; (D) engaging in a criminal enterprise
involving moral turpitude; (E) any crime resulting in a conviction, which constitutes a felony in
the jurisdiction involved (other than a motor vehicle felony that does not result in the
incarceration of the Executive); (F) any loss of any state or federal license required for the
Executive to perform the Executive’s material duties or responsibilities for the Company; or (G)
any material breach of this Agreement by the Executive.

          (3) Notwithstanding anything else contained in this Agreement, the Term will not be deemed to
have been terminated for Cause unless and until there shall have been delivered to the Executive a
notice of termination stating that the Executive committed one of the types of conduct set forth in
this Section 6(c) and specifying the particulars thereof and the Executive shall be given a thirty
(30) day period to cure such conduct set forth in Section 6(c)(2).

          d. Termination by the Company for Reasons Other than Cause.

          (1) The foregoing notwithstanding, the Company may terminate the Executive’s employment for
whatever reason it deems appropriate; provided, however, that in the event such
termination is not based on Cause as provided in Section 6(c) above, the Company may terminate
this

3

 

Agreement upon giving two (2) months prior written notice. During such 2-month period
following the delivery of the notice, the Executive shall continue to perform the Executive’s
duties pursuant to this Agreement, and the Company shall continue to compensate the Executive in
accordance with this Agreement. At the expiration of such 2-month period, the Executive will be
entitled to continued Executive Benefits to be paid by the Company for the balance of the Initial
Term or any then-current Renewal Term and Compensation for a period of six (6) months.

          (2) In the event that the Executive’s employment with the Company is terminated pursuant to
this Section 6(d) or Section 6(g), then Section 7(a) of this Agreement and all references thereto
shall be inapplicable as to the Executive and the Company; provided, however, that nothing
contained in this Section 6(d)(2) shall affect any non-competition obligations contained in that
certain Stock Purchase Agreement, of even date herewith, relating to the Company, G-Air Holdings
Corp. and Gulfstream Training Academy, Inc. by and among Gulfstream Acquisition Group, Inc. and the
Executive, Thomas P. Cooper, and Aero Group Associates, Inc.

          e. Voluntary Termination. In the event the Executive terminates the Executive’s employment of
the Executive’s own volition prior to the expiration of the Term, such termination shall constitute
a voluntary termination and in such event the Executive shall be limited to the same rights and
benefits as provided in connection with a termination for Cause as provided in Section 6(c).

          f. Constructive Termination of Employment. A termination by the Company for Reasons Other
than Cause under Section 6(d) shall, at the option of the Executive, be deemed to have occurred
upon the occurrence of one or more of the following events (each, a “Constructive Termination”)
without the express written consent of the Executive:

          (1) a significant change in the nature or scope of the authorities, powers, functions, duties
or responsibilities attached to the Executive’s position as described in Section 3; or

          (2) a material breach of the Agreement by the Company; or

          (3) a material reduction of the Executive’s benefits under any employee benefit plan,
compensation plan, program or arrangement (for Executive individually or as part of a group) of the
Company as then in effect or as in effect on the Effective Date, which reduction shall not be
effectuated for similarly situated employees of the Company; or

          (4) failure by a successor company to assume the obligations under this Agreement; or

          (5) a change in the Executive’s principal office to a location outside the South Florida area.

Anything herein to the contrary notwithstanding, the Executive shall give written notice to the
Board of the Directors that the Executive believes an event has occurred which would result in a
Constructive Termination of the Executive’s employment under this Section 6(f), which written
notice shall specify the particular act or acts, on the basis of which the Executive intends to so
terminate the Executive’s employment, and the Company shall then be given the opportunity, within
fifteen (15) days of its receipt of such notice to cure said event; provided, however, there shall
be no period permitted to cure a second (2nd) occurrence of the same event and in no
event will there be a required period to cure following the occurrence of two (2) events as
described in this Section 6(f).

          g. Termination Following a Change of Control.

4

 

          (1) In the event that a Change in Control (as hereinafter defined) of the Company shall occur
at any time during the Term hereof, the Executive shall have the right to terminate the Executive’s
employment under this Agreement upon thirty (30) days written notice given at any time within one
(1) year after the occurrence of such event, and such termination of the Executive’s employment
with the Company pursuant to this Section 6(g)(1), then, in any such event, such termination shall
be deemed to be a Termination by the Company For Reasons Other than Cause and the Executive shall
be entitled to such Compensation and benefits as set forth in Section 6(d) of this Agreement.

          (2) For purposes of this Agreement, “Change in Control” of the Company means a change in
control (A) as set forth in Section 280G of the Internal Revenue Code or (B) of a nature that would
be required to be reported in response to Item 2.01 of the current report on Form 8-K, as in effect
on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the
“Exchange Act”); provided that, without limitation, such a change in control shall be deemed to
have occurred at such time as:

               (A) any “person” (as such term is used in Section 13(d) and 14(d) of the Exchange Act) other
than the Executive is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of the combined voting power of the Company’s outstanding securities then having the
right to vote as elections of directors; or,

               (B) the individuals who at the Effective Date constitute the Board of Directors cease for any
reason to constitute a majority thereof unless the election, or nomination for election, of each
new director was approved by a vote of at least two-thirds (2/3) of the directors then in office
who were directors at the Effective Date; or

               (C) there is a failure to elect a majority of the Board of Directors from candidates nominated
by management of the Company to the Board of Directors; or

               (D) the business of the Company for which the Executive’s services are principally performed
is disposed of by the Company pursuant to a partial or complete liquidation of the Company, a sale
of assets (including stock of a subsidiary of the Company) or otherwise.

Anything herein to the contrary notwithstanding, this Section 6(g)(2) will not apply under the
following circumstances:

               (Y) where all or any portion of the stock of the Company is offered through an initial or
subsequent public offering; and/or

               (Z) where the Executive gives the Executive’s explicit written waiver stating that for the
purposes of this Section 6(g)(2), a Change in Control shall not be deemed to have occurred. The
Executive’s participation in any negotiations or other matters in relation to a Change in Control
shall in no way constitute such a waiver which can only be given by an explicit written waiver as
provided in the preceding sentence.

          (3) An “Attempted Change in Control” shall be deemed to have occurred if any substantial
attempt, accompanied by significant work efforts and expenditures of money, is made to accomplish a
Change in Control, as described in Section 6(g)(2) above, whether or not such attempt is
made with the approval of a majority of the then current members of the Board of Directors.

          (4) In the event that, within twelve (12) months of any Change in Control or Attempted Change
in Control, the Company terminates the employment of the Executive under this

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Agreement for any
reason other than for Cause as defined in Section 6(c), or the Executive’s employment is
constructively terminated as defined in Section 6(g)(5) below, then, in any such event, such
termination shall be deemed to be a Termination by the Company for Reasons Other than for Cause and
the Executive shall be entitled to such Compensation and benefits as set forth in Section 6(d) of
this Agreement.

          (5) For purposes of this Section 6(g), the Executive’s employment shall be deemed
constructively terminated, at the option of the Executive, in the event one or more of the
following events occurs without the express written consent of the Executive:

               (A) a significant change in the nature or scope of the authorities, powers, functions, duties
or responsibilities attached to the Executive’s position as described in Section 3; or

               (B) a material breach of the Agreement by the Company; or

               (C) a material reduction of the Executive’s benefits under any employee benefit plan,
compensation plan, program or arrangement (for Executive individually or as part of a group) of the
Company as then in effect or as in effect on the Effective Date, which reduction shall not be
effectuated for similarly situated employees of the Company; or

               (D) failure by a successor company to assume the obligations under this Agreement; or

               (E) a change in the Executive’s principal office to a location outside the South Florida area.

          (6) Anything in this Section 6(g) to the contrary notwithstanding, in no event will any action
or non-action by the Executive at any time prior to the first (1st) anniversary date of
the applicable Change in Control or Attempted Change in Control (including any action or non-action
prior to the Effective Date of this Agreement) be deemed consent to any of the events described in
this Section 6(g).

          (7) Anything herein to the contrary notwithstanding, in the event the circumstances giving
rise to an Attempted Change in Control are included in those circumstances giving rise to an actual
Change in Control, the twelve (12) month period under this Section 6 will be deemed to have
recommenced on the date the actual Change in Control occurred.

          h. Executive’s Obligations upon Termination. Upon the termination of the Term hereunder for
whatever reason, Executive will (1) return to the Company all materials of the Company including,
without limitation, Confidential Information (defined below) and all equipment, brochures,
documents and materials of any kind, including those prepared by Executive in the scope of the
Executive’s employment hereunder; (2) forthwith tender the Executive’s resignation from any office
the Executive may hold in the Company; and (3) the Executive will not at any time after termination
represent that the Executive is still connected with the Company.

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     7. Covenant Not to Compete, Non-Solicitation and Non-Disclosure of Information.

          a. Covenant Not To Compete. The Executive acknowledges and recognizes the highly competitive
nature of the Company’s business and the goodwill, continued patronage, and specifically the names
and addresses of the Company’s clients constitute a substantial asset of the Company having been
acquired through considerable time, money and effort. Accordingly, in consideration of the
execution of this Agreement, the Executive agrees to the following:

          (1) That during the Restrictive Period (defined herein) and within the Territory (defined
herein), the Executive will not, individually or in conjunction with others, directly or indirectly
engage in any Business Activities (as hereinafter defined) without the Company’s prior written
consent.

          (2) For purposes of this Section 7, (A) “Restrictive Period” shall mean the Term and three (3)
years after any termination under Section 6; (B) “Territory” shall mean Florida, the Bahamas and
the portions of Cuba where the Business is conducted pursuant to the Services Agreement, as
amended, between the Company and Gulfstream Air Charter (the “Services Agreement”) as of the
Effective Date; and (C) “Business Activities” shall mean owning, managing, operating, assisting,
joining, controlling or participating in the ownership, management, operation or control of, or
being connected as a director, officer, employee, partner, consultant or otherwise with, any profit
or non-profit company, organization or business in the Territory, that, directly or indirectly,
competes with the Business (as such Business exists on the Effective Date). The definition of
“Business Activities” shall not include the ownership of a five percent (5%) or less equity
interest in any such company, organization or business that is a public corporation and shall not
include any activities undertaken by Gulfstream Air Charter prior to the spin-off contemplated by
the amendment to the Services Agreement and any activities undertaken by the entity which will be
assigned and transferred certain assets and licenses of Gulfstream Air Charter pursuant to the
amended Services Agreement or otherwise.

          b. Non-Solicitation. During the Restricted Period and within the Territory, the Executive
shall not (1) solicit, raid, entice, induce or contact, or attempt to solicit, raid, entice, induce
or contact, any airline code share partner of the Company to become a customer of any other Person
for products or services the same as, or competitive with, those products and services sold,
rented, leased, rendered or otherwise made available to airline code share partners by the Company
as of the Effective Date, as well as products and services in any stage of development by the
Company as of the Effective Date (although not yet commercialized or not generally available), or
approach any such Person for such purpose or authorize the taking of such actions by any other
Person or assist or participate with any such Person in taking such action, or (2) solicit, raid,
entice, induce or contact (other than through means of general advertising), or attempt to solicit,
raid, entice, induce or contact (other than through means of general advertising), any Person that
currently is or at any time during the Restricted Period shall be (or, in the case of termination
is at the time of termination), an employee, agent or consultant of or to the Company to leave the
Company or do anything from which the Executive is restricted by reason of this Section 7, and the
Executive shall not approach any such employee, agent or consultant for such purpose or authorize
or participate with the taking of such actions by any other Person or assist or participate with
any such Person in taking such action. “Person” means and shall include a natural person, a
partnership, a corporation, a limited liability company, an association, a joint stock company, a
trust, a joint venture, an unincorporated organization or a governmental entity (or any department,
agency or political subdivision thereof) and shall be construed broadly.

          c. Non-Disclosure of Information.

          (1) The Executive acknowledges that the Company’s Confidential Information (defined below) is
a valuable, special and unique asset of the Company, access to and knowledge of
which are essential to the performance of the Executive hereunder. In light of the highly
competitive

7

 

nature of the industry in which the Company’s business is conducted, the Executive
agrees that all Confidential Information heretofore or in the future obtained by the Executive as a
result of the Executive’s association with the Company shall be considered confidential. In
recognition of this fact, the Executive agrees that the Executive, during the Restricted Period,
shall not, directly or indirectly, use, publish, disseminate, describe or otherwise disclose any
Confidential Information or developments of the Company without the prior written consent of the
Company.

          (2) “Confidential Information” means any and all intellectual property owned or used by the
Company and other information not publicly available or generally available to the industry, which
relates to specific matters concerning the Business of the Company. The Executive recognizes and
agrees that all documents and objects containing any Confidential Information, whether developed by
the Executive or by someone else for the Executive or the Company, will after the Effective Date
become the exclusive property of the Company.

          d. Covenants as Essential Elements of this Agreement. It is understood by and between the
parties hereto that the foregoing covenants contained in this Section 7 are essential elements of
this Agreement, and that but for the agreement by the Executive to comply with such covenants, the
Company would not have agreed to enter into this Agreement. Such covenants by the Executive shall
be construed to be agreements independent of any other provisions of this Agreement. The existence
of any other claim or cause of action, whether predicated on any other provision of this Agreement,
or otherwise, as a result of the relationship between the parties shall not constitute a defense to
the enforcement of such covenants against the Executive.

          e. Injunctive Relief; Other. The Executive specifically agrees and acknowledges that the
restrictions contained in this Section 7 are necessary to prevent harm to the Company and that the
restrictions contained herein will not result in unreasonable harm to the Executive. The Executive
further acknowledges that a breach of any provision of this Section 7 by the Executive would cause
the Company to suffer immediate and irreparable harm, which could not be remedied by the payment of
money. In the event of a breach or threatened breach by the Executive of the provisions of the
covenants contained in this Section 7, the Company shall be entitled to injunctive relief to
prevent or end such breach, without the requirement to post bond. Nothing herein shall be
construed as prohibiting the Company from pursuing any other remedies available to it for such
breach or such threatened breach, including the recovery of damages.

     8. Indemnification. The Executive shall continue to be covered by the indemnification
provisions contained in the Articles of Incorporation and/or the Bylaws of the Company (the
“Organizational Documents”) with respect to matters occurring on or prior to the date of
termination of the Executive’s employment with the Company, subject to all the provisions of
Florida and Federal law and the Organizational Documents then in effect. Such reasonable expenses,
including attorneys’ fees, that may be covered by the Organizational Documents then in effect shall
be paid by the Company on a current basis in accordance with such provision and Florida law. To
the extent that any such payments by the Company pursuant to the Organizational Documents may be
subject to repayment by the Executive pursuant to the provisions of the Organizational Documents,
or pursuant to Florida or Federal law, such repayment shall be due and payable by the Executive to
the Company within twelve (12) months after the termination of all proceedings, if any, which
relate to such repayment and to the Company’s affairs for the period prior to the date of
termination of the Executive’s employment with the Company and as to which the Executive has been
covered by such applicable provisions.

8

 

     9. Withholding. Anything to the contrary notwithstanding, all payments required to be made by
the Company hereunder to the Executive or the Executive’s estate or beneficiaries shall be subject
to the withholding of such amounts, if any, relating to tax and other payroll deductions as the
Company may reasonably determine it should withhold pursuant to any applicable law or regulation.
In lieu of withholding such amounts, the Company may accept other arrangements pursuant to which it
is satisfied that such tax and other payroll obligations will be satisfied in a manner complying
with applicable law or regulation.

     10. Notices. Any notice required or permitted to be given under the terms of this Agreement
shall be sufficient if in writing and if sent postage prepaid by registered or certified mail,
return receipt requested; by overnight delivery; by courier; or by confirmed telecopy, in the case
of the Executive, to the Executive’s last place of business or residence as shown in the records of
the Company, or in case of the Company, to its principal office as set forth in the first paragraph
of this Agreement, or at such other place as it may designate.

     11. Waiver. Unless agreed in writing, the failure of either party, at any time, to require
performance by the other of any provisions hereunder shall not affect its right thereafter to
enforce the same, nor shall a waiver by either party of any breach of any provision hereof be taken
or held to be a waiver of any other preceding or succeeding breach of any term or provision of this
Agreement. No extension of time for the performance of any obligation or act shall be deemed to be
an extension of time for the performance of any other obligation or act hereunder.

     12. Completeness and Modification. This Agreement constitutes the entire understanding
between the parties hereto superseding all prior and contemporaneous agreements or understandings
between the parties hereto concerning the Executive’s employment with the Company, including but
not limited to the Prior Employment Agreement. The Executive agrees that this Agreement
constitutes the Executive’s explicit written waiver of the provisions of Section 6(g) of the Prior
Employment Agreement. The Executive hereby agrees that, for the purposes of Section 6(g)(2) and
Section 6(g)(3) of the Prior Employment Agreement, neither a Change in Control nor an Attempted
Change in Control shall be deemed to have occurred prior to and including the Effective Date.
This Agreement may be amended, modified, superseded or canceled, and any of the terms, covenants,
representations, warranties or conditions hereof may be waived, only by a written instrument
executed by the parties, or in the case of a waiver, by the party to be charged.

     13. Counterparts. This Agreement may be executed in two (2) or more counterparts, each of
which will be deemed to be an original instrument, but all such counterparts together will
constitute one agreement.

     14. Binding Effect/Assignment. This Agreement shall be binding upon the parties hereto, their
heirs, legal representatives, successors and assigns. This Agreement shall not be assignable by
the Executive but shall be assignable by the Company in connection with the sale, transfer or other
disposition of its business or to any of the Company’s affiliates controlled by or under common
control with the Company.

     15. Governing Law. The Company’s headquarters and principal place of business are located in,
and this Agreement was formed in, and is being executed and accepted in, Dania, Florida. This
Agreement will in all respects be interpreted, construed and governed by and in accordance with the
laws of the State of Florida, without regard to its conflicts of law principals. Anything in this
Agreement to the contrary notwithstanding, the Executive shall conduct the Executive’s business in
a lawful manner and faithfully comply with applicable laws or regulations of the state, city or
other political subdivision in which the Executive is located.

9

 

     16. Further Assurances. All parties hereto shall execute and deliver such other instruments
and do such other acts as may be necessary to carry out the intent and purposes of this Agreement.

     17. Headings. All section references contained herein refer to sections contained in this
Agreement unless a different agreement, instrument or document is clearly indicated in the text of
the reference. The headings of the sections are for convenience only and shall not control or
affect the meaning or construction or limit the scope or intent of any of the provisions of this
Agreement.

     18. Survival. Any termination of this Agreement shall not, however, affect the ongoing
provisions of this Agreement which shall survive such termination in accordance with their terms.

     19. Severability. Each section and subsection of this Agreement constitutes a separate and
distinct understanding, covenant and provision hereof. In the event that any provision of this
Agreement will finally be determined to be unlawful, such provision will be deemed to be severed
from this Agreement, but every other provision of this Agreement will remain in full force and
effect. If a court of competent jurisdiction should declare any part of this Agreement, including,
without limitation, the covenants contained in Section 7, unenforceable because of any unreasonable
restriction of activities, duration and/or geographical area, then the parties hereby acknowledge
and agree that such court shall have the express authority to reform such part to provide for
reasonable restrictions, including the grant to the Company of such other relief at law or in
equity reasonably necessary to protect the interests of Company.

     20. Rights of Third Parties. Nothing herein expressed or implied is intended to or will be
construed to confer upon or give to any person, firm or other entity, other than the parties hereto
and their permitted assigns, any rights or remedies under or by reason of this Agreement.

[SIGNATURE PAGE FOLLOWS]

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

	 	 	 	 	 
	 	THE COMPANY:

GULFSTREAM INTERNATIONAL AIRLINES, INC.

 	 
	 	By:  	/s/ David Hackett
 	 
	 	 	Name:  	David Hackett 	 
	 	 	Its:       President 	 
	 

THE EXECUTIVE ACKNOWLEDGES THAT THE EXECUTIVE HAS READ ALL OF THE TERMS OF THIS AGREEMENT,
UNDERSTANDS THE AGREEMENT, AND AGREES TO ABIDE BY ITS TERMS AND CONDITIONS.

	 	 	 	 	 
	 	THE EXECUTIVE:

 	 
	 	/s/ Thomas L. Cooper
 	 
	 	THOMAS L. COOPER 	 
	 	 	 
	 

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