Document:

Exhibit
10.8

 

GLOBAL
AVIATION HOLDINGS, INC.

2009
LONG-TERM INCENTIVE PLAN

 

 

GLOBAL
AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION I.  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2  THE
  LONG-TERM INCENTIVE PLAN

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  PURPOSE OF THE PLAN

  	
   

  	
  5

  
	
  2.2

  	
   

  	
  STOCK SUBJECT TO THE PLAN

  	
   

  	
  6

  
	
  2.3

  	
   

  	
  ADMINISTRATION OF THE PLAN

  	
   

  	
  6

  
	
  2.4

  	
   

  	
  ELIGIBILITY AND LIMITS

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3  TERMS
  OF AWARDS

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  TERMS AND CONDITIONS OF ALL AWARDS

  	
   

  	
  7

  
	
  3.2

  	
   

  	
  TERMS AND CONDITIONS OF OPTIONS

  	
   

  	
  8

  
	
  3.3

  	
   

  	
  TERMS AND CONDITIONS OF STOCK
  APPRECIATION RIGHTS

  	
   

  	
  10

  
	
  3.4

  	
   

  	
  TERMS AND CONDITIONS OF STOCK AWARDS

  	
   

  	
  10

  
	
  3.5

  	
   

  	
  TERMS AND CONDITIONS OF DIVIDEND
  EQUIVALENT RIGHTS

  	
   

  	
  11

  
	
  3.6

  	
   

  	
  TERMS AND CONDITIONS OF PERFORMANCE
  AWARDS

  	
   

  	
  11

  
	
  3.7

  	
   

  	
  TERMS AND CONDITIONS OF RESTRICTED
  STOCK UNITS

  	
   

  	
  12

  
	
  3.8

  	
   

  	
  TREATMENT OF AWARDS ON TERMINATION OF
  SERVICE

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4  RESTRICTIONS ON STOCK

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  ESCROW OF SHARES

  	
   

  	
  12

  
	
  4.2

  	
   

  	
  RESTRICTIONS ON TRANSFER

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5  GENERAL
  PROVISIONS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  WITHHOLDING

  	
   

  	
  13

  
	
  5.2

  	
   

  	
  CHANGES IN CAPITALIZATION; MERGER;
  LIQUIDATION

  	
   

  	
  13

  
	
  5.3

  	
   

  	
  CASH AWARDS

  	
   

  	
  15

  
	
  5.4

  	
   

  	
  COMPLIANCE WITH CODE

  	
   

  	
  15

  
	
  5.5

  	
   

  	
  RIGHT TO TERMINATE EMPLOYMENT OR
  SERVICE

  	
   

  	
  15

  
	
  5.6

  	
   

  	
  NON-ALIENATION OF BENEFITS

  	
   

  	
  15

  
	
  5.7

  	
   

  	
  RESTRICTIONS ON DELIVERY AND SALE OF
  SHARES; LEGENDS

  	
   

  	
  16

  
	
  5.8

  	
   

  	
  LISTING AND LEGAL COMPLIANCE

  	
   

  	
  16

  
	
  5.9

  	
   

  	
  TERMINATION AND AMENDMENT OF THE PLAN

  	
   

  	
  16

  
	
  5.10

  	
   

  	
  STOCKHOLDER APPROVAL

  	
   

  	
  16

  
	
  5.11

  	
   

  	
  CHOICE OF LAW

  	
   

  	
  16

  
	
  5.12

  	
   

  	
  EFFECTIVE DATE OF PLAN

  	
   

  	
  17

  

 

i

 

GLOBAL
AVIATION HOLDINGS, INC.

2009
LONG-TERM INCENTIVE PLAN

 

SECTION I. 
DEFINITIONS

 

1.1            Definitions.  Whenever used herein, the
masculine pronoun will be deemed to include the feminine, and the singular to
include the plural, unless the context clearly indicates otherwise, and the
following capitalized words and phrases are used herein with the meaning
thereafter ascribed:

 

(a)             “Affiliate” means:

 

(1)             Any
Subsidiary or Parent;

 

(2)             An
entity that directly or through one or more intermediaries controls, is
controlled by, or is under common control with the Company, as determined by
the Company; or

 

(3)             Any
entity in which the Company has such a significant interest that the Company
determines it should be deemed an “Affiliate”, as determined in the sole
discretion of the Company.

 

(b)             “Award Agreement” means any written agreement, contract, or other
instrument or document as may from time to time be designated by the Company as
evidencing an Award granted under the Plan.

 

(c)             “Award Program” means a written program established by the
Committee, pursuant to which Awards are granted under the Plan under uniform
terms, conditions and restrictions set forth in such written program.

 

(d)             “Awards”
means, collectively, Dividend Equivalent Rights, Incentive Stock Options,
Nonqualified Stock Options, Performance Awards, Restricted Stock Units, Stock
Appreciation Rights and Stock Awards.

 

(e)             “Board of Directors” means the board of directors of the Company.

 

(f)              “Change in Control” unless otherwise defined by the Committee in
the applicable Award Agreement, means and shall be deemed to have occurred upon
the occurrence of any one or more of the following:

 

(1)             consummation
of a sale or other disposition of all or substantially all of the assets of the
Company or of all of the issued and outstanding capital stock of the Company;

 

 

(2)             the
acquisition by any individual, entity, or group (excluding any individual,
entity or group which now or, prior to such acquisition, has beneficial
ownership of more than fifty percent (50%) of the outstanding equity interests
of the Company) of beneficial ownership of more than fifty percent (50%) of the
outstanding equity interests of the Company; or

 

(3)             the
acquisition by any individual, entity, or group (excluding MatlinPatterson) of
a controlling interest (i.e. “golden share”) that would allow such individual,
entity, or group to exercise effective control of and / or veto power with
respect to the Company.

 

(g)             “Code” means the Internal Revenue Code of 1986, as amended.

 

(h)             “Committee” means the committee appointed by the Board of
Directors to administer the Plan; provided that, if no such committee is
appointed, the Board of Directors in its entirety shall constitute the
Committee.  The Board of Directors shall
consider the advisability of whether the members of the Committee shall consist
solely of two or more members of the Board of Directors who are both “outside
directors” as defined in Treas. Reg. § 1.162-27(e) as promulgated by the
Internal Revenue Service and “non-employee directors” as defined in Rule 16b-3(b)(3) as
promulgated under the Exchange Act, and if applicable, who satisfy the
requirements of the national securities exchange or nationally recognized
quotation or market system on which the Stock is then traded.

 

(i)              “Company” means Global Aviation Holdings, Inc., a company
incorporated under the laws of the State of Delaware.

 

(j)              “Disability” unless otherwise defined by the Committee in the
applicable Award Agreement or Award Program, has the same meaning as provided
in the long-term disability plan or policy maintained or, if applicable, most
recently maintained, by the Company or, if applicable, any Affiliate of the
Company for the Participant.  If no long-term
disability plan or policy was ever maintained on behalf of the Participant or,
if the determination of Disability relates to an Incentive Stock Option,
Disability means that condition described in Code Section 22(e)(3), as
amended from time to time.  In the event
of a dispute, the determination of Disability will be made by the Committee and
will be supported by advice of a physician competent in the area to which such
Disability relates.

 

(k)             “Dividend Equivalent Rights” means certain rights to receive cash
payments or Stock as described in Section 3.5.

 

(l)              “Exchange Act” means the Securities Exchange Act of 1934, as
amended from time to time.

 

(m)            “Exercise Price” means the exercise price per share of Stock
purchasable under an Option.

 

2

 

(n)             “Fair Market Value” refers to the determination of the value of a
share of Stock as of a date, determined as follows:

 

(1)             if the shares of Stock are actively traded on any national securities
exchange or any nationally recognized quotation or market system (including,
without limitation, NASDAQ), Fair Market Value shall mean the price at which
Stock shall have been sold on such date, as reported by any such exchange or
system selected by the Committee on which the shares of Stock are then traded;

 

(2)             if the shares of Stock are not actively traded but are reported on any
such exchange or system, Fair Market Value shall mean the price for the Stock
on such date, as reported by such exchange or system; or

 

(3)             if the shares of Stock are not traded or reported on any exchange or
system on such date, Fair Market Value shall mean the fair market value of a
share of Stock as determined by the Committee taking into account such facts
and circumstances deemed to be material by the Committee to the value of the
Stock in the hands of the Participant.

 

Notwithstanding the foregoing, for purposes of Paragraph
(1), (2), or (3) above, the Committee may use the closing price as of the
indicated date, the average price or value as of the indicated date or for a
period certain ending on the indicated date, the price determined at the time
the transaction is processed, the tender offer price for shares of Stock, or
any other method which the Committee determines is reasonably indicative of the
fair market value of the Stock; provided, however, that for purposes of
granting Nonqualified Stock Options or Stock Appreciation Rights, Fair Market
Value of Stock shall be determined in accordance with the requirements of Code Section 409A,
and for purposes of granting Incentive Stock Options, Fair Market Value of
Stock shall be determined in accordance with the requirements of Code Section 422.

 

(o)             “Incentive Stock Option” means an incentive stock option within
the meaning of Section 422 of the Internal Revenue Code.

 

(p)             “Nonqualified Stock Option” means a stock option that is not an
Incentive Stock Option.

 

(q)             “Option” means a Nonqualified Stock Option or an Incentive Stock
Option.

 

(r)              “Over 10% Owner” means an individual who at the time an Incentive
Stock Option to such individual is granted owns stock possessing more than 10%
of the total combined voting power of all classes of stock of the Company or
its Parent or Subsidiaries, determined by applying the attribution rules of
Code Section 424(d).

 

(s)              “Parent” means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if, with respect to
Incentive Stock 

 

3

 

Options, at the time of the granting of the
Option, each of the corporations other than the Company owns stock possessing
fifty percent (50%) or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.  A Parent shall include any entity other than
a corporation to the extent permissible under Section 424(f) or
regulations and rulings thereunder.

 

(t)              “Participant” means an individual who receives an Award hereunder.

 

(u)             “Performance Award” refers to a performance award as described in Section 3.6.

 

(v)             “Plan” means the Global Aviation Holdings, Inc. 2009
Long-Term Incentive Plan.

 

(w)            “Restricted Stock Units” refers to the rights described in Section 3.7.

 

(x)             “Separation from Service” shall mean a termination of a
Participant’s employment or other service relationship with the Company,
subject to the following requirements:

 

(1)             in the
case of a Participant who is an employee of the Company, a termination of the
Participant’s employment where either (A) the Participant has ceased to
perform any services for the Company and all affiliated companies that,
together with the Company, constitute the “service recipient” within the
meaning of Code Section 409A (collectively, the “Service Recipient”) or (B) the
level of bona fide services the Participant performs for the Service Recipient
after a given date (whether as an employee or as an independent contractor)
permanently decreases (excluding a decrease as a result of military leave, sick
leave, or other bona fide leave of absence if the period of such leave does not
exceed six months, or if longer, so long as the Participant retains a right to
reemployment with the Service Recipient under an applicable statute or by
contract) to no more than twenty percent (20%) of the average level of bona
fide services performed for the Service Recipient (whether as an employee or an
independent contractor) over the immediately preceding 36-month period (or the
full period of service if the Participant has been providing services to the
Service Recipient for less than 36 months); or

 

(2)             in the
case of a Participant who is an independent contractor engaged by the Service
Recipient, a termination of the Participant’s service relationship with the
Service Recipient where (A) the contract (or in the case of more than one
contract, all contracts) under which services are performed for the Service
Recipient expires, if the expiration constitutes a good-faith and complete
termination of the contractual relationship; or (B) with respect to
amounts payable to the Participant under an Award upon the termination of the
independent contractor’s relationship with the Service Recipient, no amount
will be paid to the Participant before a date that is at least twelve (12)
months after the day on which 

 

4

 

the contract expires under which the Participant
performs services for the Service Recipient (or, in the case of more than one
contract, all such contracts expire), and no amount payable to the Participant
on that date will be paid to the Participant if, after the expiration of the
contract (or contracts) and before that date, the Participant performs services
for the Service Recipient as an independent contractor or an employee; or

 

(3)             in any
case, as may otherwise be permitted under Code Section 409A.

 

(y)             “Stock” means the Company’s Class A common stock.

 

(z)             “Stock Appreciation Right” means a stock appreciation right
described in Section 3.3.

 

(aa)           “Stock Award” means a stock award described in Section 3.4.

 

(bb)           “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if, at the relevant time, each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing fifty percent (50%) or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain.  With respect to Incentive Stock Options, a “Subsidiary”
shall include any entity other than a corporation to the extent permissible
under Section 424(f) or regulations or rulings thereunder.

 

(cc)           “Termination
of Employment” means the termination of the employment relationship between
a Participant and the Company and its Affiliates, regardless of whether
severance or similar payments are made to the Participant for any reason,
including, but not by way of limitation, a termination by resignation,
discharge, death, Disability or retirement. 
The Committee will, in its absolute discretion, determine the effect of
all matters and questions relating to a Termination of Employment as it affects
an Award, including, but not by way of limitation, the question of whether a
leave of absence constitutes a Termination of Employment.

 

SECTION 2  THE
LONG-TERM INCENTIVE PLAN

 

2.1            Purpose
of the Plan.  The Plan is intended
to (a) provide incentives to certain officers, employees, directors,
consultants,  and other service providers of
the Company and its Affiliates to stimulate their efforts toward the continued
success of the Company and to operate and manage the business in a manner that
will provide for the long-term growth and profitability of the Company; (b) encourage
stock ownership by certain officers, employees, directors, consultants, and
other service providers by providing them with a means to acquire a proprietary
interest in the Company, acquire shares of Stock, or to receive compensation
which is based upon appreciation in the value of Stock; and (c) provide a
means of obtaining, rewarding and retaining officers, employees, directors,
consultants, and other service providers.

 

5

 

2.2            Stock
Subject to the Plan.  Subject to adjustment
in accordance with Section 5.2, Fifty-Six Thousand Seven Hundred and
Seventy-Six (56,776) shares of Stock (the “Maximum Plan Shares”) are hereby
reserved exclusively for issuance upon exercise, settlement, or payment
pursuant to Awards, all or any of which may be pursuant to any one or more
Awards, including without limitation, Incentive Stock Options. Shares of
Stock shall not be deemed to have been issued pursuant to the Plan with respect
to any portion of an Award that is settled in cash.  The shares of Stock attributable to the
nonvested, unpaid, unexercised, unconverted or otherwise unsettled portion of
any Award that is forfeited or cancelled or expires or terminates for any
reason without becoming vested, paid, exercised, converted or otherwise settled
in full will again be available for purposes of the Plan.  For purposes of determining the number of
shares of Stock issued upon the exercise, settlement or grant of an Award under
this Section, any shares of Stock withheld to satisfy tax withholding
obligations or the Exercise Price shall be considered issued under the Plan.

 

2.3            Administration
of the Plan.   The Plan is administered by the
Committee.  The Committee has full authority in its discretion to
determine the officers, employees, directors, consultants, and other service
providers of the Company or its Affiliates to whom Awards will be granted and
the terms and provisions of Awards, subject to the Plan.  Subject to the provisions of the Plan, the
Committee has full and conclusive authority to interpret the Plan; to
prescribe, amend and rescind rules and regulations relating to the Plan;
to determine the terms and provisions of the respective Award Agreements and to
make all other determinations necessary or advisable for the proper
administration of the Plan.  The Committee’s determinations under the Plan
need not be uniform and may be made by it selectively among persons who
receive, or are eligible to receive, Awards under the Plan (whether or not such
persons are similarly situated).  The Committee’s decisions are final and
binding on all Participants.  Each member
of the Committee shall serve at the discretion of the Board of Directors and
the Board of Directors may from time to time remove members from or add members
to the Committee.  Vacancies on the
Committee shall be filled by the Board of Directors.

 

2.4            Eligibility
and Limits.  Awards may be granted
only to officers, employees, directors, consultants, and other service
providers of the Company or any Affiliate of the Company; provided, however,
that an Incentive Stock Option may only be granted to an employee of the
Company or any Parent or Subsidiary, and a Nonqualified Stock Option or a Stock
Appreciation Right may only be granted to an employee, director, consultant or
any other service provider of the Company or any of its Subsidiaries.  In the case of Incentive Stock Options, the
aggregate Fair Market Value (determined as of the date an Incentive Stock
Option is granted) of Stock with respect to which stock options intended to
meet the requirements of Code Section 422 become exercisable for the first
time by an individual during any calendar year under all plans of the Company
and its Parents and Subsidiaries may not exceed $100,000; provided further,
that if the limitation is exceeded, the Incentive Stock Option(s) which
cause the limitation to be exceeded will be treated as Nonqualified Stock
Option(s).  If, after grant, an Option or
Stock Appreciation Right is cancelled, the shares subject to the cancelled
Award shall continue to be counted against the maximum number of shares for
which Options and Stock Appreciation Rights may be granted to an employee as described
in this Section 2.4.

 

6

 

SECTION 3  TERMS
OF AWARDS

 

3.1            Terms
and Conditions of All Awards.

 

(a)             The number of shares of Stock as to which an Award may be granted or the
amount of an Award will be determined by the Committee in its sole discretion,
subject to the provisions of Section 2.2 as to the total number of shares
available for grants under the Plan and subject to the limits in Section 2.4.

 

(b)             Each Award will either be evidenced by an Award Agreement in such form
and containing such terms, conditions and restrictions as the Committee may
determine to be appropriate, including without limitation, performance goals,
if any, that must be achieved as a condition to vesting or settlement of the
Award, or be made subject to the terms of an Award Program, containing such
terms, conditions and restrictions as the Committee may determine to be
appropriate, including without limitation, performance goals, if any, that must
be achieved as a condition to vesting or settlement of the Award.  Each Award Agreement or Award Program is
subject to the terms of the Plan and any provisions contained in the Award
Agreement or Award Program that are inconsistent with the Plan are null and
void.

 

(c)             The date as of which an Award is granted will be the date on which the
Committee has approved the terms and conditions of the Award and has determined
the recipient of the Award and the number of shares, if any, covered by the
Award, and has taken all such other actions necessary to complete the grant of
the Award, or such later date as may be specified in the approval of such
Award.

 

(d)             Any Award may be granted in connection with all or any portion of a
previously or contemporaneously granted Award. 
Exercise or vesting of an Award granted in connection with another Award
may result in a pro rata surrender or cancellation of any related Award, as
specified in the applicable Award Agreement or Award Program.

 

(e)             Awards are not transferable or assignable except by will or by the laws
of descent and distribution governing the State in which the Participant was
domiciled at the time of the Participant’s death, and are exercisable, during
the Participant’s lifetime, only by the Participant; or in the event of the
Disability of the Participant, by the legal representative of the Participant;
or in the event of death of the Participant, by the legal representative of the
Participant’s estate or if no legal representative has been appointed within
ninety (90) days of the Participant’s death, by the person(s) taking under
the laws of descent and distribution governing the State in which the
Participant was domiciled at the time of the Participant’s death; except to the
extent that the Committee may provide otherwise as to any Awards other than
Incentive Stock Options.

 

(f)              After
the date of grant of an Award, the Committee may, in its sole discretion,
modify the terms and conditions of an Award, except to the extent that such 

 

7

 

modification would be inconsistent with other provisions
of the Plan or would adversely affect the rights of a Participant under the
Award (except as otherwise permitted under the Plan).

 

3.2            Terms
and Conditions of Options.  Each Option
granted under the Plan must be evidenced by an Award Agreement.  At the time any Option is granted, the
Committee will determine whether the Option is to be an Incentive Stock Option
described in Code Section 422 or a Nonqualified Stock Option, and the
Option must be clearly identified as to its status as an Incentive Stock Option
or a Nonqualified Stock Option. 
Incentive Stock Options may only be granted to employees of the Company
or any Subsidiary or Parent.  At the time
any Incentive Stock Option granted under the Plan is exercised, the Company
will be entitled to legend the certificates representing the shares of Stock
purchased pursuant to the Option to clearly identify them as representing the
shares purchased upon the exercise of an Incentive Stock Option.  An Incentive Stock Option may only be granted
within ten (10) years from the earlier of the date the Plan is adopted or
approved by the Company’s stockholders.

 

(a)             Option Price. The Committee shall
determine the Exercise Price of an Option, which shall be specified in the
applicable Award Agreement.  The Exercise
Price may never be less than the Fair Market Value (or one hundred and ten
percent (110%) of Fair Market Value in the case of an Incentive Stock Option
granted to an Over 10% Owner) of a share of Stock determined as of the date of
grant, subject to adjustment in accordance with Section 5.2.

 

(b)             Option Term.  Any Incentive Stock Option granted to a
Participant who is not an Over 10% Owner is not exercisable after the
expiration of ten (10) years after the date the Option is granted.  Any Incentive Stock Option granted to an Over
10% Owner is not exercisable after the expiration of five (5) years after
the date the Option is granted.  The term
of any Nonqualified Stock Option shall be as specified in the applicable Award
Agreement.

 

(c)             Payment.  Payment for all shares
of Stock purchased pursuant to exercise of an Option will be made in any form
or manner authorized by the Committee in the Award Agreement or by amendment
thereto, including, but not limited to, cash, cash equivalents, or, if the
Award Agreement provides, but in any case subject to such procedures or
restrictions as the Committee may impose:

 

(i)              by
delivery to the Company of a number of shares of Stock owned by the holder
having an aggregate Fair Market Value of not less than the product of the
Exercise Price multiplied by the number of shares the Participant intends to
purchase upon exercise of the Option on the date of delivery;

 

(ii)             in a cashless exercise through a broker, except if and to the extent
prohibited by law as to officers and directors, including without limitation,
the Sarbanes-Oxley Act of 2002, as amended; or

 

8

 

(iii)          by having a number of shares of Stock withheld, the Fair Market Value of
which as of the date of exercise is sufficient to satisfy the Exercise Price.

 

In its discretion, the Committee also may authorize (at
the time an Option is granted or thereafter) Company financing to assist the
Participant as to payment of the Exercise Price on such terms as may be offered
by the Committee in its discretion, except to the extent prohibited by law,
including, but not limited to, restrictions applicable to officers and
directors under the Sarbanes-Oxley Act of 2002, as amended.  Payment must be made at the time that the
Option or any part thereof is exercised, and no shares may be issued or
delivered upon exercise of an Option until full payment has been made by the
Participant.  The holder of an Option, as such, has none of the rights of
a stockholder.

 

(d)           Conditions to the Exercise of an Option. 
Each Option granted under the Plan is exercisable by whom, at such time or
times, or upon the occurrence of such event or events, and in such amounts, as
the Committee specifies in the Award Agreement; provided, however, that
subsequent to the grant of an Option, the Committee, at any time before
complete termination of such Option, may modify the terms of an Option to the
extent not prohibited by the terms of the Plan, including, without limitation,
accelerating the time or times at which such Option may be exercised in whole
or in part, including, without limitation, upon a Change in Control and may
permit the Participant or any other designated person to exercise the Option,
or any portion thereof, for all or part of the remaining Option term,
notwithstanding any provision of the Award Agreement or Award Program to the
contrary.

 

(e)           Termination of Incentive Stock Option. 
With respect to an Incentive Stock Option, in the event of Termination of
Employment of a Participant, the Option or portion thereof held by the
Participant which is unexercised will expire, terminate, and become
unexercisable no later than the expiration of three (3) months after the
date of Termination of Employment; provided, however, that in the case of a
holder whose Termination of Employment is due to death or Disability, one (1) year
will be substituted for such three (3) month period; provided, further
that such time limits may be exceeded by the Committee under the terms of the
grant, in which case, the Incentive Stock Option will be a Nonqualified Option
if it is exercised after the time limits that would otherwise apply. For
purposes of this Subsection (e), a Termination of Employment of the Participant
will not be deemed to have occurred if the Participant is employed by another
corporation (or a parent or subsidiary corporation of such other corporation)
which has assumed the Incentive Stock Option of the Participant in a
transaction to which Code Section 424(a) is applicable.

 

(f)            Special Provisions for Certain Substitute Options.  Notwithstanding anything to the contrary in this Section 3.2,
any Option issued in substitution for an option previously issued by another
entity, which substitution occurs in connection with a transaction to which
Code Section 424(a) is applicable, may provide for an exercise price
computed in accordance with such Code Section and the regulations
thereunder and may contain such other terms and conditions as the Committee may
prescribe to cause such substitute Option to contain as nearly as possible the
same terms and conditions 

 

9

 

(including the applicable vesting and termination
provisions) as those contained in the previously issued option being replaced
thereby.

 

(g)           No
Reload Grants.  Options shall not be granted under the Plan
in consideration for and shall not be conditioned upon the delivery of shares
of Stock to the Company in payment of the exercise price and/or tax withholding
obligation under any other option held by a Participant.

 

(h)           No
Repricing.  Except as provided in Section 5.2,
without the approval of the Company’s stockholders the Exercise Price of an
Option may not be reduced, directly or indirectly, after the grant of the
Option, including any surrender of the Option in consideration of, or in
exchange for, the grant of a new Option having an exercise price below that of
the Option that was surrendered.

 

3.3           Terms
and Conditions of Stock Appreciation Rights.  Each Stock Appreciation Right granted under
the Plan must be evidenced by an Award Agreement.  A Stock Appreciation
Right entitles the Participant to receive the excess of (1) the Fair Market
Value of a specified or determinable number of shares of the Stock at the time
of payment or exercise over (2) a specified or determinable price,  which may not be less than the Fair Market Value on the
date of grant.   A Stock Appreciation Right granted in
connection with an Award may only be exercised to the extent that the related
Award has not been exercised, paid or otherwise settled.

 

(a)           Settlement.  Upon settlement of a Stock Appreciation
Right, the Company must pay to the Participant, at the discretion of the
Committee, the appreciation in cash or shares of Stock (valued at the aggregate
Fair Market Value on the date of payment or exercise) as provided in the Award
Agreement or, in the absence of such provision, as the Committee may determine.

 

(b)           Conditions to Exercise.  Each Stock Appreciation Right granted under
the Plan is exercisable or payable at such time or times, or upon the
occurrence of such event or events, and in such amounts, as the Committee
specifies in the Award Agreement; provided, however, that subsequent to the
grant of a Stock Appreciation Right, the Committee, at any time before complete
termination of such Stock Appreciation Right, may accelerate the time or times
at which such Stock Appreciation Right may be exercised or paid in whole or in
part.

 

(c)           No
Repricing.  Except as provided in Section 5.2,
without the approval of the Company’s stockholders, the price of a Stock
Appreciation Right may not be reduced, directly or indirectly, after the grant
of the Stock Appreciation Right, including any surrender of the Stock
Appreciation Right in consideration of, or in exchange for, the grant of a new
Stock Appreciation Right having a price below that of the Stock Appreciation
Right that was surrendered.

 

3.4           Terms
and Conditions of Stock Awards.  The number of shares of Stock subject to a
Stock Award and restrictions or conditions on such shares, if any, will be as
the Committee determines, and the certificate for such shares will bear
evidence of any restrictions or conditions.  Subsequent to the date of the
grant of the Stock Award, the Committee has the

 

10

 

power to permit, in its discretion, an acceleration of
the expiration of an applicable restriction period with respect to any part or
all of the shares granted to a Participant. 
The Committee may require a cash payment from the Participant in an
amount no greater than the aggregate Fair Market Value of the shares of Stock
granted determined at the date of grant in exchange for the grant of a Stock
Award or may grant a Stock Award without the requirement of a cash payment.

 

3.5           Terms
and Conditions of Dividend Equivalent Rights.  A Dividend Equivalent Right entitles the
Participant to receive payments from the Company in an amount determined by
reference to any cash dividends paid on a specified number of shares of Stock
to Company stockholders of record during the period such rights are
effective.  The Committee may impose such
restrictions and conditions on any Dividend Equivalent Right as the Committee
in its discretion shall determine, including the date any such right shall
terminate and may reserve the right to terminate, amend or suspend any such
right at any time.

 

(a)           Payment.  Payment in respect of a Dividend Equivalent
Right may be made by the Company in cash or shares of Stock (valued at Fair
Market Value as of the date payment is owed) as provided in the Award Agreement
or Award Program, or, in the absence of such provision, as the Committee may
determine.

 

(b)           Conditions to Payment.  Each Dividend Equivalent Right granted under
the Plan is payable at such time or times, or upon the occurrence of such event
or events, and in such amounts, as the Committee specifies in the applicable
Award Agreement or Award Program; provided, however, that subsequent to the
grant of a Dividend Equivalent Right, the Committee, at any time before
complete termination of such Dividend Equivalent Right, may accelerate the time
or times at which such Dividend Equivalent Right may be paid in whole or in
part.

 

3.6           Terms
and Conditions of Performance Awards.  A Performance Award shall entitle the
Participant to receive, at a specified future date, payment of an amount equal
to all or a portion of either (i) the value of a specified or determinable
number of units (stated in terms of a designated or determinable dollar amount
per unit) granted by the Committee, or (ii) a percentage or multiple of a
specified amount determined by the Committee. 
At the time of the grant, the Committee must determine the base value of
each unit; the number of units subject to a Performance Award, the specified
amount and the percentage or multiple of the specified amount, as may be
applicable; and the performance goals applicable to the determination of the
ultimate payment value of the Performance Award. The Committee may provide for
an alternate base value for each unit or an alternate percentage or multiple
under certain specified conditions.

 

(a)           Payment.  Payment in respect of Performance Awards may
be made by the Company in cash or shares of Stock (valued at Fair Market Value
as of the date payment is owed) as provided in the applicable Award Agreement
or Award Program or, in the absence of such provision, as the Committee may
determine.

 

(b)           Conditions to Payment.  Each Performance Award granted under the Plan
shall be payable at such time or times, or upon the occurrence of such event or
events, and in such amounts, as the Committee may specify in the applicable
Award Agreement 

 

11

 

or Award Program; provided, however, that subsequent to
the grant of a Performance Award, the Committee, at any time before complete
termination of such Performance Award, may accelerate the time or times at
which such Performance Award may be paid in whole or in part.

 

3.7           Terms
and Conditions of Restricted Stock Units.  Restricted Stock Units shall entitle the
Participant to receive, at a specified future date or event, payment of an
amount equal to all or a portion of the Fair Market Value of a specified number
of shares of Stock at the end of a specified period.  At the time of the grant, the Committee will
determine the factors which will govern the portion of the Restricted Stock
Units so payable, including, at the discretion of the Committee, any
performance goals that must be satisfied as a condition to payment.  Restricted Stock Unit Awards containing
performance goals may be designated as performance share awards.

 

(a)           Payment.  Payment in respect of Restricted Stock Units
may be made by the Company, at the discretion of the Committee, in cash or
shares of Stock (valued at Fair Market Value as of the date payment is owed) as
provided in the applicable Award Agreement or Award Program, or, in the absence
of such provision, as the Committee may determine.

 

(b)           Conditions to Payment.  Each Restricted Stock Unit granted under the
Plan is payable at such time or times, or upon the occurrence of such event or
events, and in such amounts, as the Committee may specify in the applicable
Award Agreement or Award Program; provided, however, that subsequent to the
grant of a Restricted Stock Unit, the Committee, at any time before complete
termination of such Restricted Stock Unit, may accelerate the time or times at
which such Restricted Stock Unit may be paid in whole or in part.

 

3.8           Treatment
of Awards on Termination of Service.  Except as otherwise provided by Plan Section 3.2(e),
any Award under this Plan to a Participant who has experienced a Termination of
Employment, Separation from Service, or termination of some other service
relationship with the Company and its Affiliates may be cancelled, accelerated,
paid or continued, as provided in the applicable Award Agreement or Award
Program, or, as the Committee may otherwise determine to the extent not
prohibited by the Plan.  The portion of
any Award exercisable in the event of continuation or the amount of any payment
due under a continued Award may be adjusted by the Committee to reflect the
Participant’s period of service from the date of grant through the date of the
Participant’s Termination of Employment, Separation from Service or termination
of some other service relationship or such other factors as the Committee
determines are relevant to its decision to continue the Award.

 

SECTION 4  RESTRICTIONS
ON STOCK

 

4.1           Escrow
of Shares.  Any certificates representing the shares of
Stock issued under the Plan will be issued in the Participant’s name, but, if
the applicable Award Agreement or Award Program so provides, the shares of
Stock will be held by a custodian designated by the

 

12

 

Committee (the “Custodian”).  Each applicable Award Agreement or Award
Program providing for transfer of shares of Stock to the Custodian may require
a Participant to complete an irrevocable stock power appointing the Custodian
or the Custodian’s designee as the attorney-in-fact for the Participant for the
term specified in the applicable Award Agreement or Award Program, with full
power and authority in the Participant’s name, place and stead to transfer,
assign and convey to the Company any shares of Stock held by the Custodian for
such Participant, if the Participant forfeits the shares under the terms of the
applicable Award Agreement or Award Program.  During the period that the
Custodian holds the shares subject to this Section, the Participant is entitled
to all rights, except as provided in the applicable Award Agreement or Award
Program, applicable to shares of Stock not so held.  Any dividends declared on shares of Stock
held by the Custodian must, as provided in the applicable Award Agreement or
Award Program, be paid directly to the Participant or, in the alternative, be
retained by the Custodian or by the Company until the expiration of the term
specified in the applicable Award Agreement or Award Program and shall then be
delivered, together with any proceeds, with the shares of Stock to the
Participant or to the Company, as applicable.

 

4.2           Restrictions
on Transfer.  The Participant does not have the right to
make or permit to exist any disposition of the shares of Stock issued pursuant
to the Plan except as provided in the Plan or the applicable Award Agreement or
Award Program.  Any disposition of the
shares of Stock issued under the Plan by the Participant not made in accordance
with the Plan or the applicable Award Agreement or Award Program will be
void.  The Company will not recognize, or
have the duty to recognize, any disposition not made in accordance with the
Plan and the applicable Award Agreement or Award Program, and the shares so
transferred will continue to be bound by the Plan and the applicable Award
Agreement or Award Program.

 

SECTION 5 
GENERAL PROVISIONS

 

5.1           Withholding.  The Company shall deduct from all cash distributions under the
Plan any taxes required to be withheld by federal, state or local
government.  Whenever the Company
proposes or is required to issue or transfer shares of Stock under the Plan or
upon the vesting of any Stock Award, the Company has the right to require the
recipient to remit to the Company an amount sufficient to satisfy any federal,
state and local tax withholding requirements prior to the delivery of any
certificate or certificates for such shares or the vesting of such Stock Award.  A Participant may satisfy the withholding
obligation in cash, cash equivalents, or if and to the extent the applicable
Award Agreement, Award Program, or Committee procedure so provides, a
Participant may elect to have the number of shares of Stock he is to receive
reduced by, or tender back to the Company, the smallest number of whole shares
of Stock which, when multiplied by the Fair Market Value of the shares of
Stock, is sufficient to satisfy federal, state and local, if any, withholding
obligation arising from exercise or payment of an Award.

 

5.2           Changes
in Capitalization; Merger; Liquidation.

 

(a)           The number of shares of Stock reserved for the grant of Options, Dividend
Equivalent Rights, Performance Awards, Restricted Stock Units, Stock
Appreciation 

 

13

 

Rights and Stock Awards; the number of shares of Stock
reserved for issuance upon the exercise, settlement, or payment, as applicable,
of each outstanding Option, Dividend Equivalent Right, Performance Award,
Restricted Stock Unit and Stock Appreciation Right and upon vesting,
settlement, or grant, as applicable, of each Stock Award; the Exercise Price of
each outstanding Option, the threshold price of each outstanding Stock
Appreciation Right, the specified number of shares of Stock to which each
outstanding Option, Dividend Equivalent Right, Performance Award, Restricted
Stock Unit, Stock Appreciation Right, and Stock Award pertains, and the maximum
number of shares as to which Options, Stock Appreciation Rights, and other Awards
may be granted to an employee during any calendar year, shall be
proportionately adjusted for any nonreciprocal transaction between the Company
and the holders of capital stock of the Company that causes the per share value
of the shares of Stock underlying an Award to change, such as a stock dividend,
stock split, spinoff, rights offering, or recapitalization through a large,
nonrecurring cash dividend (each, an “Equity Restructuring”).

 

(b)           In the event of a merger, consolidation, reorganization, extraordinary
dividend, sale of substantially all of the Company’s assets, other change in
capital structure of the Company, tender offer for shares of Stock, or a Change
in Control, that in each case does not constitute an Equity Restructuring, the
Committee may make such adjustments with respect to Awards and take such other
action as it deems necessary or appropriate, including, without limitation, the
substitution of new Awards, the assumption of awards not originally granted
under the Plan, or the adjustment of outstanding Awards, the acceleration of
Awards, the removal of restrictions on outstanding Awards, or the termination
of outstanding Awards in exchange for the cash value determined in good faith
by the Committee of the vested and/or unvested portion of the Award, all as may
be provided in the applicable Award Agreement or, if not expressly addressed
therein, as the Committee subsequently may determine in its sole discretion.
Any adjustment pursuant to this Section 5.2 may provide, in the Committee’s
discretion, for the elimination without payment therefor of any fractional
shares that might otherwise become subject to any Award, but except as set
forth in this Section may not otherwise diminish the then value of the
Award.

 

(c)           Notwithstanding any other provision of this Plan to the contrary, in
taking any action pursuant to Subsection (a) or (b) with respect to a
Nonqualified Stock Option or a Stock Appreciation Right, the Committee shall
consider any provisions of Code Section 409A and the regulations
thereunder that are required to be followed as a condition of the Nonqualified
Stock Option and the Stock Appreciation Right not being treated as the grant of
a new Option or Stock Appreciation Right or a change in the form of payment.  Any adjustment described in the preceding
sentence may include a substitution in whole or in part of other equity
securities of the issuer and the class involved in such Equity Restructuring in
lieu of the shares of Stock that are subject to the Award.

 

(d)           The
existence of the Plan and the Awards granted pursuant to the Plan shall not
affect in any way the right or power of the Company to make or authorize any
adjustment, reclassification, reorganization or other change in its capital or
business 

 

14

 

structure, any merger or consolidation of the Company,
any issue of debt or equity securities having preferences or priorities as to
the Stock or the rights thereof, the dissolution or liquidation of the Company,
any sale or transfer of all or any part of its business or assets, or any other
corporate act or proceeding.

 

5.3           Cash Awards.  The Committee may, at any time and in its discretion, grant to
any holder of an Award the right to receive, at such times and in such amounts
as determined by the Committee in its discretion, a cash amount which is
intended to reimburse such person for all or a portion of the federal, state
and local income taxes imposed upon such person as a consequence of the receipt
of the Award or the exercise of rights thereunder.

 

5.4           Compliance with Code.

 

(a)           Code Section 422.                All Incentive Stock Options to be granted hereunder are intended to
comply with Code Section 422, and all provisions of the Plan and all
Incentive Stock Options granted hereunder must be construed in such manner as
to effectuate that intent.

 

(b)           Code Section 409A.             Except to the extent provided otherwise by the Committee, Awards under
the Plan are intended to satisfy the requirements of Section 409A of the
Code (and the Treasury Department guidance and regulations issued thereunder)
so as to avoid the imposition of any additional taxes or penalties under Code Section 409A.  If the Committee determines that an Award,
Award Agreement, Award Program, payment, distribution, deferral election,
transaction or any other action or arrangement contemplated by the provisions
of the Plan would, if undertaken, cause a Participant to become subject to any
additional taxes or other penalties under Code Section 409A, then unless
the Committee provides otherwise, such Award, Award Agreement, Award Program,
payment, distribution, deferral election, transaction or other action or
arrangement shall not be given effect to the extent it causes such result and
the related provisions of the Plan, Award Agreement, and / or Award Program
will be deemed modified, or, if necessary, suspended in order to comply with
the requirements of Code Section 409A to the extent determined appropriate
by the Committee, in each case without the consent of or notice to the Participant.

 

5.5           Right to Terminate Employment or Service. 
Nothing in the Plan or in any Award Agreement confers upon any Participant the
right to continue as an officer, employee, director, consultant, or other
service provider of the Company or any of its Affiliates or affect the right of
the Company or any of its Affiliates to terminate the Participant’s employment
or services at any time.

 

5.6           Non-Alienation of Benefits.  Other than as provided herein, no benefit
under the Plan may be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge; and any attempt to do so
shall be void.  No such benefit may,
prior to receipt by the Participant, be in any manner liable for or subject to
the debts, contracts, liabilities, engagements or torts of the Participant.

 

15

 

5.7           Restrictions on Delivery and Sale of Shares; Legends.  Each Award is subject to the
condition that if at any time the Committee, in its discretion, shall determine
that the listing, registration or qualification of the shares covered by such
Award upon any securities exchange or under any state or federal law is
necessary or desirable as a condition of or in connection with the granting of
such Award or the purchase or delivery of shares thereunder, the delivery of
any or all shares pursuant to such Award may be withheld unless and until such
listing, registration or qualification shall have been effected.  If a registration statement is not in effect
under the Securities Act of 1933 or any applicable state securities laws with
respect to the shares of Stock purchasable or otherwise deliverable under
Awards then outstanding, the Committee may require, as a condition of exercise
of any Option or as a condition to any other delivery of Stock pursuant to an
Award, that the Participant or other recipient of an Award represent, in
writing, that the shares received pursuant to the Award are being acquired for
investment and not with a view to distribution and agree that the shares will
not be disposed of except pursuant to an effective registration statement,
unless the Company shall have received an opinion of counsel that such
disposition is exempt from such requirement under the Securities Act of 1933
and any applicable state securities laws. 
The Company may include on certificates representing shares delivered
pursuant to an Award such legends referring to the foregoing representations or
restrictions or any other applicable restrictions on resale as the Company, in
its discretion, shall deem appropriate.

 

5.8           Listing
and Legal Compliance.  The Committee may suspend the exercise or
payment of any Award so long as it determines that securities exchange listing
or registration or qualification under any securities laws is required in
connection therewith and has not been completed on terms acceptable to the
Committee.

 

5.9           Termination and Amendment of the Plan.  The Board of Directors at any time may amend
or terminate the Plan without stockholder approval; provided, however, that the
Board of Directors may condition any amendment on the approval of stockholders
of the Company if such approval is necessary or advisable with respect to tax,
securities or other applicable laws.  The
Board of Directors shall consider that to preserve the Plan’s ability to grant
Incentive Stock Options, stockholder approval is required for any amendment to
the Plan that increases the number of shares of Stock available for the grant
of Incentive Stock Options under the Plan or if the Plan is assumed in
connection with a corporate transaction which results in a change in either the
granting corporation or the stock available for purchase or grant under the
Plan; provided, however, if the consolidation agreement fully describes the
Plan and such agreement is approved by the stockholders, no further stockholder
approval of the Plan shall be required. 
No such termination or amendment without the consent of the holder of an
Award may adversely affect the rights of the Participant under such Award.

 

5.10         Stockholder
Approval.  The Plan shall be submitted to the
stockholders of the Company for their approval within twelve (12) months before
or after the adoption of the Plan by the Board of Directors of the Company.  If such approval is not obtained, any Award
granted hereunder will be void.

 

5.11         Choice
of Law.  The laws of the State of Georgia shall
govern the Plan, to the extent not preempted by federal law, without reference
to the principles of conflict of laws.

 

16

 

5.12         Effective
Date of Plan.  The Plan shall become
effective as of the date the Plan was approved by the Board of Directors.

 

IN WITNESS WHEREOF, the Company has executed this Plan,
and the Plan has become effective as of June 29, 2009.

 

 

	
   

  	
  GLOBAL AVIATION HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark M. McMillin

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  General
  Counsel & Corporate Secretary

  
				

 

17Exhibit 10.10

 

NONQUALIFIED STOCK OPTION AWARD

PURSUANT TO THE GLOBAL AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN FOR OUTSIDE DIRECTORS

 

THIS NONQUALIFIED STOCK OPTION AWARD (the “Award”) is made as of the Grant Date by and between GLOBAL AVIATION HOLDINGS, INC. (the “Company”), a company organized under the laws of the State of Delaware; and                                                     (the “Participant”).

 

Upon and subject to the Terms and Conditions attached hereto and incorporated herein by reference, the Company hereby awards as of the Grant Date to Participant a nonqualified stock option (the “Option”), as described below, to purchase the Option Shares.

 

A.            Grant Date:                                     , 2009.

 

B.            Type of Option:  Nonqualified Stock Option.

 

C.            Plan under which granted:  Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan for Outside Directors.

 

D.            Option Shares:  All or any part of seventy (70) shares of the Company’s Class A common stock (the “Common Stock”), subject to adjustment as provided in the attached Terms and Conditions.

 

E.             Exercise Price:  $1,000.00 per share of Common Stock.  The Exercise Price is, in the judgment of the Committee (as defined in the Plan), not less than 100% of the Fair Market Value of a share of Common Stock on the Grant Date.

 

F.             Option Period:  The Option may be exercised only during the Option Period which commences on the Grant Date and ends on the earliest of:

 

(i)            the tenth (10th) anniversary of the Grant Date; or

 

(ii)           twelve (12) months following the date the Participant ceases to be either an employee, director, or any other type of service provider of the Company and its Affiliates due to a Termination of Service or termination of any other service relationship for reasons other than for Cause;

 

Notwithstanding the foregoing, the Option shall cease to be exercisable upon the date the Participant ceases to be an employee, director, or any other type of service provider of the Company or an Affiliate due to a Termination of Service or termination of any other service relationship by the Company or an Affiliate for Cause.  Note that other limitations to exercising the Option, as described in the attached Terms and Conditions, may apply.

 

1

 

G.            Vesting Schedule:  The Option Shares shall be fully vested and exercisable from and after the Grant Date.

 

IN WITNESS WHEREOF, the Company and the Participant have executed and sealed this Award as of the Grant Date set forth above.

 

	     
    	    GLOBAL AVIATION HOLDINGS, INC.:
    
	     
    	     
    
	     
    	    By:
    	     
    
	     
    	     
    	     
    
	     
    	    Title:
    	     
    
	     
    	     
    
	     
    	     
    
	     
    	     
    
	     
    	    Participant
    

 

2

 

TERMS AND CONDITIONS

TO THE

NONQUALIFIED STOCK OPTION AWARD

PURSUANT TO THE GLOBAL AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN FOR OUTSIDE DIRECTORS

 

1.             Exercise of Option.  Subject to the provisions provided herein or in the Award made pursuant to the Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan for Outside Directors:

 

(a)           the Option may be exercised with respect to all or any portion of the Option Shares at any time during the Option Period by:

 

(i)            the delivery to the Company, at its principal place of business, of a written notice of exercise in substantially the form attached hereto as Exhibit 1, which shall be actually delivered to the Company at least ten (10) days prior to the date upon which Participant desires to exercise all or any portion of the Option (unless such prior notice is waived by the Company); and

 

(ii)           payment as provided in Section 2 to the Company of the applicable Exercise Price multiplied by the number of Option Shares being purchased (the “Purchase Price”).

 

Upon acceptance of such notice and receipt of payment in full of the Purchase Price, the Company shall cause to be issued a certificate representing the Option Shares purchased.  Notwithstanding the foregoing, in the event the Participant is given notice of termination for Cause under any services agreement between the Participant and the Company or any Affiliate or otherwise, the Participant’s ability to exercise the Option shall be suspended from the giving of such notice until such time as the Participant cures the circumstance(s) constituting Cause, if expressly permitted by the applicable services agreement or otherwise, or, if there is no opportunity to cure or no cure is timely effected, from and after the giving of such notice through and including the effective date that the Participant’s service relationship is terminated for Cause.

 

2.             Purchase Price.  Payment of the Purchase Price for all Option Shares purchased pursuant to the exercise of an Option shall be made:

 

(a)           in cash or cash equivalents;

 

(b)           by electing to have the number of shares of Common Stock to be issued upon exercise reduced by the number of shares of Common Stock having a Fair Market Value, as determined under the Plan, on the date of exercise either equal to the Purchase Price or in combination with cash or cash equivalents equal to the Purchase Price;

 

2

 

(c)           by delivery to the Company of a number of shares of Common Stock which are owned by the Participant, having a Fair Market Value, as determined under the Plan, on the date of exercise either equal to the Purchase Price or in combination with cash or check equal to the Purchase Price;

 

(d)           if and when the Common Stock becomes traded by brokers, whether on a national securities exchange or otherwise, by receipt of the Purchase Price in cash from a broker, dealer or other “creditor” as defined by Regulation T issued by the Board of Governors of the Federal Reserve System following delivery by the Participant to the Committee of instructions in a form acceptable to the Committee regarding delivery to such broker, dealer or other creditor of that number of Option Shares with respect to which the Option is exercised, but only as and to the extent permitted under Section 13(k) of the Securities Exchange Act of 1934 (Section 402 of the Sarbanes-Oxley Act of 2002); or

 

(e)           in any combination of the foregoing.

 

3.             Rights as Shareholder.  Until the stock certificates reflecting the Option Shares accruing to the Participant upon exercise of the Option are issued to the Participant, the Participant shall have no rights as a shareholder with respect to such Option Shares.  The Company shall make no adjustment for any dividends or distributions or other rights on or with respect to Option Shares for which the record date is prior to the issuance of that stock certificate, except as the Plan otherwise provides.

 

4.             Restriction on Transfer of Option and of Option Shares.

 

(a)           General Restrictions.  The Participant (and any subsequent holder of the Option) may not sell, pledge or otherwise directly or indirectly transfer (whether with or without consideration and whether voluntarily or involuntarily or by operation of law) any interest in or any beneficial interest in the Option except pursuant to the provisions of this Award except or to the extent waived in writing by the Committee.  Any sale, pledge or other transfer (or any attempt to effect the same) of the Option in violation of any provision of this Award shall be void, and the Company shall not record such transfer, assignment, pledge or other disposition on its books or treat any purported transferee or pledgee of the Option as the owner or pledgee of the Option for any purpose.

 

(b)           Certain Permitted Transfers of Options.  The restrictions contained in this Section will not apply with respect to transfers of the Option pursuant to applicable laws of descent and distribution; provided that the restrictions contained in this Section will continue to be applicable to the Option after any such transfer; and provided further that the transferee(s) of the Option must agree in writing to be bound by the provisions of this Award.

 

(c)           Limitations on Option Shares.  Unless and until a Public Sale, the Participant shall be subject to the provisions of Section 8 and no transfer of the Option Shares to a third party prior to a Public Sale shall be permitted unless the transferee(s) of the Option Shares agrees in writing to be bound by the provisions of Section 8.

 

3

 

5.             Changes in Capitalization.

 

(a)           The number of Option Shares and the Exercise Price shall be proportionately adjusted for nonreciprocal transactions between the Company and the holders of capital stock of the Company that cause the per share value of the shares of Common Stock underlying the Option to change, such as a stock dividend, stock split, spinoff, rights offering, or recapitalization through a large, nonrecurring cash dividend (each, an “Equity Restructuring”).

 

(b)           In the event of a merger, consolidation, reorganization, extraordinary dividend, sale of substantially all of the Company’s assets or other material change in the capital structure of the Company, or a tender offer for shares of Common Stock, or a Change in Control, that in each case is not an Equity Restructuring, the Committee or its designee shall take such action to make such adjustments in the Option or the terms of this Award as the Committee or its designee, in its sole discretion, determines in good faith is necessary or appropriate, including, without limitation, adjusting the number and class of securities subject to the Option with a corresponding adjustment in the Exercise Price, substituting a new option to replace the Option, accelerating the termination of the Option Period or terminating the Option in consideration of a cash payment to the Participant in an amount equal to the excess of the then Fair Market Value of the Option Shares over the aggregate Exercise Price of the Option Shares; provided, however, that no such adjustment shall be inconsistent with the rights of the Participant as provided in these Terms and Conditions.  Any determination made by the Committee or its designee pursuant to this Section 5(b) will be final and binding on the Participant.  Any action taken by the Committee or its designee need not treat all Participants equally.

 

(c)           The existence of the Plan and the Option granted pursuant to this Award shall not affect in any way the right or power of the Company to make or authorize any adjustment, reclassification, reorganization or other change in its capital or business structure, any merger or consolidation of the Company, any issue of debt or equity securities having preferences or priorities as to the Common Stock or the rights thereof, the dissolution or liquidation of the Company, any sale or transfer of all or any part of its business or assets, or any other corporate act or proceeding. Any adjustment pursuant to this Section may provide, in the Committee’s discretion, for the elimination without payment therefor of any fractional shares that might otherwise become subject to any Option.

 

6.             Special Limitation on Exercise.  Any exercise of the Option is subject to the condition that if at any time the Committee, in its discretion, shall determine that the listing, registration, or qualification of the shares covered by the Option upon any securities exchange or under any state or federal law is necessary or desirable as a condition of or in connection with the delivery of shares thereunder, the delivery of any or all shares pursuant to the Option may be withheld unless and until such listing, registration or qualification shall have been effected.  The Participant shall deliver to the Company, prior to the exercise of the Option, such information, representations and warranties as the Company may reasonably request in order for the Company to be able to satisfy itself that the Option Shares are being acquired in accordance with the terms 

 

4

 

of an applicable exemption from the securities registration requirements of applicable federal and state securities laws.

 

7.             Piggyback Registration.

 

(a)           Initial Public Offering.  If the Company determines to register its Common Stock in an initial public offering utilizing Form S-1, the Company will promptly give to the Participant a written notice thereof and include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Option Shares (including any capital stock of the Company issued as a dividend or other distribution with respect to, or in exchange for or in replacement of the Option Shares) specified in a written request made by the Participant within thirty (30) days after the Participant’s receipt of the written notice from the Company, except as set forth in Section 7(b) below.  Such written request may specify all or a part of the Option Shares for inclusion in such registration and any underwriting.

 

(b)           Underwritten Offering.  If the registration pursuant to this Section 7 involves an underwritten offering of the securities being registered, whether or not for sale for the account of the Company, to be distributed on a firm commitment basis by or through one or more underwriters of recognized national or regional standing under underwriting terms appropriate for such a transaction, the Company will so advise the Participant as a part of the written notice given pursuant to Subsection (a).  In such event, the right of the Participant to registration pursuant to this Section 7 will be conditioned upon the Participant’s participation in such underwriting and the inclusion of the Option Shares designated by the Participant in the underwriting to the extent provided herein.  If such Option Shares are to be included in such registration, the Optionee will (together with the Company and the other shareholders distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected for underwriting by the Company.  Notwithstanding any other provision of this Section 7, if the representative determines in good faith that marketing factors require a limitation on the number of shares to be underwritten, the Company will so advise all holders of securities requesting registration, and the number of shares of securities that are entitled to be included in the registration and underwriting will be allocated in the following manner:  the number of securities that may be included in the registration and underwriting by the Participant and each of the other shareholders will be reduced, on a pro rata basis (based on the number of shares held by such holder), by such minimum number of shares as is necessary to comply with such limitation.  If the Participant or any of the other shareholders disapproves of the terms of any such underwriting, such person may elect to withdraw therefrom by prompt written notice to the Company and the underwriter.  Any Option Shares or other securities excluded or withdrawn from such underwriting will be withdrawn from such registration.

 

5

 

(c)           Expenses of Registration.  All expenses incurred in connection with any registration, qualification or compliance pursuant to this Section 7 will be borne by the Company, and all sales commissions will be borne by the Participant pro rata on the basis of the number of the Option Shares so registered as compared to the total shares of Common Stock so registered.

 

(d)           Registration Procedures.  The Company will keep the Participant advised in writing as to the progress and completion of the registration.

 

8.             Lock-up Agreement. The Participant hereby agrees that he will not, directly or indirectly, sell, offer, contract to sell, grant of options for the purchase of, transfer the economic risk of ownership in, make any short sale of, pledge or otherwise dispose of any Option Shares during the thirty (30) days prior to and the one hundred eighty (180) days (or any shorter period permitted by the managing underwriter) after the effectiveness of any underwritten public offering, except as part of such underwritten public offering or if otherwise permitted by the Company; provided, all similarly situated shareholders become subject to the same restrictions.  The Participant hereby agrees to execute and deliver any additional document or acknowledgement reflecting the foregoing provisions or containing similar restrictions as may be requested by the Company or its managing underwriters in connection with the initial public offering of Common Stock. The Company may place a legend on any stock certificates representing Option Shares and may impose stop-transfer instructions with respect to the Option Shares in order to enforce the foregoing restrictions.

 

9.             Legend on Stock Certificates.  Certificates evidencing the Option Shares, to the extent appropriate at the time, shall have noted conspicuously on the certificates a legend intended to give all persons full notice of the existence of the conditions, restrictions, rights and obligations set forth herein and in the Plan.

 

10.           Governing Laws.  The Award and these Terms and Conditions shall be construed, administered and enforced according to the laws of the State of Delaware; provided, however, the Option may not be exercised except in compliance with exemptions available under applicable state securities laws of the state in which the Participant resides and/or any other applicable securities laws.

 

11.           Successors.  The Award and these Terms and Conditions shall be binding upon and inure to the benefit of the heirs, legal representatives, successors and permitted assigns of the Participant and the Company.

 

12.           Notice.  Except as otherwise specified herein, all notices and other communications under this Award shall be in writing and shall be deemed to have been given if personally delivered or if sent by registered or certified United States mail, return receipt requested, postage prepaid, addressed to the proposed recipient at the last known address of the recipient.  Any party may designate any other address to which notices shall be sent by giving notice of the address to the other parties in the same manner as provided herein.

 

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13.           Severability.  In the event that any one or more of the provisions or portion thereof contained in the Award and these Terms and Conditions shall for any reason be held to be invalid, illegal or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of the Award and these Terms and Conditions, and the Award and these Terms and Conditions shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein.

 

14.           Entire Agreement.  Subject to the terms and conditions of the Plan, the Award and these Terms and Conditions express the entire understanding of the parties with respect to the Option.

 

15.           Violation.  Except as provided in Section 4, any transfer, pledge, sale, assignment, or hypothecation of the Option or any portion thereof shall be a violation of the terms of the Award or these Terms and Conditions and shall be void and without effect.

 

16.           Headings.  Section headings used herein are for convenience of reference only and shall not be considered in construing the Award or these Terms and Conditions.

 

17.           Specific Performance.  In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of the Award and these Terms and Conditions, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.

 

18.           No Right to Continued Retention.  Neither the establishment of the Plan nor the award of Option Shares hereunder shall be construed as giving the Participant the right to continued employment or other service relationship with the Company or any Affiliate.

 

19.           Definitions.  As used in this Award,

 

(a)           “Cause” has the same meaning as provided in any services agreement between the Participant and the Company or Affiliate(s) on the date of termination of the service relationship, or if no such definition or services agreement exists, “Cause” means conduct amounting to:

 

(i)            a material breach or violation of the terms of any agreement to which the Participant and the Company or Affiliate(s) are party, including, without limitation, a willful and substantial failure by the Participant to perform his duties and responsibilities in the manner and to the extent required under any such agreement;

 

(ii)           fraud, dishonesty, or willful misconduct in the performance of the duties and responsibilities of the Participant’s service with the Company or Affiliate(s);

 

(iii)          conviction of the Participant of a crime involving breach of trust or moral turpitude; or

 

7

 

(iv)          gross and willful insubordination or inattention to the duties and responsibilities of the Participant’s service with the Company or Affiliate(s).

 

(b)           “Public Sale” means the completion of any sale of any shares of Common Stock to the public pursuant to an offering registered under the Securities Act of 1933 or to the public through a broker, dealer or market maker pursuant to the provisions of Rule 144 adopted under the Securities Act of 1933.

 

(c)           Other capitalized terms that are not defined herein have the meaning set forth in the Plan or the Award, except where the context does not reasonably permit.

 

8

 

EXHIBIT 1

 

NOTICE OF EXERCISE OF

STOCK OPTION TO PURCHASE

COMMON STOCK OF

GLOBAL AVIATION HOLDINGS, INC.

 

	     
    	    Name
    	     
    
	     
    	    Address
    	     
    
	     
    	     
    	     
    
	     
    	    Date
    	     
    

 

Global Aviation Holdings, Inc.

HLH Building

101 World Drive

Peachtree City, GA  30269

 

Attn:  Chief Executive Officer

 

Re:            Exercise of Nonqualified Stock Option

 

Gentlemen:

 

Subject to acceptance hereof by Global Aviation Holdings, Inc. (the “Company”) and pursuant to the provisions of the Global Aviation Holdings, Inc. 2009 Long-Term Incentive Plan for Outside Directors (the “Plan”), I hereby give notice of my election to exercise options granted to me to purchase                              shares of Common Stock of the Company under the Nonqualified Stock Option Award (the “Award”) dated as of                                   .  The purchase shall take place as of                     , 20       (the “Exercise Date”).

 

On or before the Exercise Date, I will pay the applicable purchase price as follows:

 

o            by delivery of cash or a certified check for $                           for the full purchase price payable to the order of Global Aviation Holdings, Inc.

 

o            by having a number of Option Shares withheld, the Fair Market Value of which as of the date of exercise is sufficient to satisfy the Exercise Price;

 

o            by delivery of shares of Common Stock that I own and that are represented by a stock certificate I will surrender to the Company with my endorsement.  If the number of shares of Common Stock represented by such stock certificate exceed the number to be applied against the purchase price, I understand that a new stock certificate will be issued to me reflecting the excess number of shares; or

 

o            if and when the Common Stock becomes traded by brokers, whether on a national securities exchange or otherwise, by delivery of the purchase price by                                                   , a broker, dealer or other “creditor” as defined by Regulation T issued by the Board of Governors of the Federal Reserve System.  I hereby authorize the Company to issue a stock certificate for the number of shares indicated above in the name of said broker, dealer or other creditor or its nominee pursuant to instructions received by the Company and to deliver said stock

 

1

 

certificate directly to that broker, dealer or other creditor (or to such other party specified in the instructions received by the Company from the broker, dealer or other creditor) upon receipt of the purchase price.

 

I understand that I am not permitted to exercise the Option if I have been given notice that my service will be terminated for Cause.  I understand that if my ability to exercise is suspended in the manner provided for in the foregoing sentence, my ability to exercise may only be reinstated in the event that I cure the circumstances specified in such notice that was the basis for my termination for Cause and only if such ability to cure is expressly provided for in the applicable service agreement or otherwise.

 

As soon as the stock certificate is registered in my name, please deliver it to me at the above address.

 

If the Common Stock being acquired is not registered for issuance to and resale by the Participant pursuant to an effective registration statement on Form S-8 (or successor form) filed under the Securities Act of 1933, as amended (the “1933 Act”), I hereby represent, warrant, covenant, and agree with the Company as follows:

 

The shares of the Common Stock being acquired by me will be acquired for my own account without the participation of any other person, with the intent of holding the Common Stock for investment and without the intent of participating, directly or indirectly, in a distribution of the Common Stock and not with a view to, or for resale in connection with, any distribution of the Common Stock, nor am I aware of the existence of any distribution of the Common Stock;

 

I am not acquiring the Common Stock based upon any representation, oral or written, by any person with respect to the future value of, or income from, the Common Stock but rather upon an independent examination and judgment as to the prospects of the Company;

 

The Common Stock was not offered to me by means of publicly disseminated advertisements or sales literature, nor am I aware of any offers made to other persons by such means;

 

I am able to bear the economic risks of the investment in the Common Stock, including the risk of a complete loss of my investment therein;

 

I understand and agree that the Common Stock will be issued and sold to me without registration under any state law relating to the registration of securities for sale, and will be issued and sold in reliance on the exemptions from registration under the 1933 Act, provided by Sections 3(b) and/or 4(2) thereof and the rules and regulations promulgated thereunder;

 

The Common Stock cannot be offered for sale, sold or transferred by me other than pursuant to: (A) an effective registration under the 1933 Act or in a transaction otherwise in compliance with the 1933 Act; and (B) evidence satisfactory to the Company of compliance with the applicable securities laws of other jurisdictions.  The Company shall be entitled to rely upon an opinion of counsel satisfactory to it with respect to compliance with the above laws;

 

The Company will be under no obligation to register the Common Stock or to comply with any exemption available for sale of the Common Stock without registration or filing, and the information or conditions necessary to permit routine sales of securities of the Company under Rule 144 under the 1933 Act are not now available and no assurance has been given that it or they will become available.  The Company is under no obligation to act in any manner so as to make Rule 144 available with respect to the Common Stock;

 

2

 

I have and have had complete access to and the opportunity to review and make copies of all material documents related to the business of the Company, including, but not limited to, contracts, financial statements, tax returns, leases, deeds and other books and records.  I have examined such of these documents as I wished and am familiar with the business and affairs of the Company.  I realize that the purchase of the Common Stock is a speculative investment and that any possible profit therefrom is uncertain;

 

I have had the opportunity to ask questions of and receive answers from the Company and any person acting on its behalf and to obtain all material information reasonably available with respect to the Company and its affairs.  I have received all information and data with respect to the Company which I have requested and which I have deemed relevant in connection with the evaluation of the merits and risks of my investment in the Company;

 

I have such knowledge and experience in financial and business matters that I am capable of evaluating the merits and risks of the purchase of the Common Stock hereunder and I am able to bear the economic risk of such purchase; and

 

The agreements, representations, warranties and covenants made by me herein extend to and apply to all of the Common Stock of the Company issued to me pursuant to this Award.  Acceptance by me of the certificate representing such Common Stock shall constitute a confirmation by me that all such agreements, representations, warranties and covenants made herein shall be true and correct at that time.

 

I understand that the certificates representing the shares being purchased by me in accordance with this notice shall bear a legend referring to the foregoing covenants, representations and warranties and restrictions on transfer, and I agree that a legend to that effect may be placed on any certificate which may be issued to me as a substitute for the certificates being acquired by me in accordance with this notice.  I further understand that capitalized terms used in this Notice of Exercise without definition shall have the meanings given to them in the Award or in the Plan, as applicable.

 

	     
    	     
    	    Very   truly yours,
    
	     
    	     
    	     
    
	     
    	     
    	     
    
	     
    	     
    	     
    

 

	    AGREED   TO AND ACCEPTED:
    	     
    	     
    
	    GLOBAL   AVIATION HOLDINGS, INC.
    	     
    	     
    
	     
    	     
    	     
    
	    By:
    	     
    	     
    	     
    
	    Title:
    	     
    	     
    	     
    
	     
    	     
    	     
    	     
    
	    Number of Shares
    	     
    	    Number   of Shares
    
	    Exercised:
    	     
    	     
    	    Remaining:
    	     
    	     
    
	     
    	     
    	     
    	     
    
	     
    	     
    	     
    	     
    
	    Date:
    	     
    	     
    	     
    

 

3

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