Document:

f8k0310ex10vii_wolf.htm

    Exhibit
10.7

     

    DYNAMIC
INTELLIGENCE INC.

     

     

    -AND
-

     

     

    AIRLINE
INTELLIGENCE SYSTEMS INC.

     

     

    -AND-

     

     

    AIRLINE
INTELLIGENCE SYSTEMS INC.

     

     

    
      

    

     

    MASTER
SERVICES AGREEMENT

     

    
      

    

     

     

    Made
as of December 9, 2005

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      
        	Article 1	 	INTERPRETATION	 	 	2	 
	 	1.1	 	Definitions	 	 	2	 
	 	1.2	 	Gender and
      Number	 	 	4	 
	Article 2	 	SERVICES
      PRODUCTS	 	 	4	 
	 	2.1	 	Services	 	 	4	 
	 	2.2	 	Non-Exclusivity	 	 	4	 
	 	2.3	 	Intellectual
      Property Rights	 	 	5	 
	 	2.4	 	Requests for
      Assistance	 	 	6	 
	 	2.5	 	Notice to be
      Provided	 	 	6	 
	 	2.6	 	Performance by
      Responders	 	 	6	 
	 	2.7	 	Performance by Third
      Parties	 	 	6	 
	 	2.8	 	Remuneration for
      Services	 	 	7	 
	 	2.9	 	Other
      Activities	 	 	7	 
	Article 3	 	LIABILITY	 	 	7	 
	 	3.1	 	Limitation of
      Liability	 	 	7	 
	Article 4	 	TERM AND
      TERMINATION	 	 	7	 
	 	4.1	 	Effective
    Date	 	 	7	 
	 	4.2	 	Term	 	 	7	 
	 	4.3	 	Insolvency,
      Etc	 	 	7	 
	 	4.4	 	Default	 	 	8	 
	 	4.5	 	Effect of
      Termination	 	 	8	 
	Article 5	 	GENERAL	 	 	8	 
	 	5.1	 	Governing Law and
      Attornment	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

      

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      
        	 	5.2	 	Public
      Notices 	 	 	8	 
	 	5.3	 	Relationship of
      Parties	 	 	8	 
	 	5.4	 	Further
      Assurances 	 	 	8	 
	 	5.5	 	Assignment 	 	 	9	 
	 	5.6	 	Severability	 	 	9	 
	 	5.7	 	Notices	 	 	9	 
	 	5.8	 	Time of
      Essence 	 	 	9	 
	 	5.9	 	Limitation of Extent
      of Agreement 	 	 	10	 
	 	5.10	 	Entire Agreement,
      Waiver 	 	 	10	 
	 	5.11	 	Breach of One
      Party. 	 	 	10	 
	 	5.12 	 	Counterparts 	 	 	10	 

      

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
       

      MASTER SERVICES AGREEMENT

       

      THIS AGREEMENT is made as of
the 9th day of December, 2005 

         

        BETWEEN:

      

    

     

    DYNAMIC INTELLIGENCE INC., a
corporation

    incorporated under the laws of Barbados

     

    ("Dynamic") 

     

    - and -

    
       

      AIRLINE INTELLIGENCE SYSTEMS INC.,
a

      corporation
incorporated under the laws of the State of Delaware

       

      ("AI
US")

    

    
       

      - and
-

       

      AIRLINE INTELLIGENCE SYSTEMS INC
a

      corporation
incorporated under the laws of the Province of

      Ontario

         

        ("AI
Canada")

      

    

     

     

     

    RECITALS:

     

    
      	A.	Dunamic, AI US and
      AL Cananda each possess certain capabilities (including any of research,
      development, marketing, sales and client services capabilities) and each
      may from time to time require the assistance from one or more of the Group
      of Companies. 
	 	 
	B.	Dynamic AI US and AI
      Canada wish to establish an ongoing arrangement for the provision of
      assistance of this sort. 
	 	 
	C.	The part parties
      wish to have AI Canada assign its intellectual Property to AI US so that
      AI US can assign its Intellectual Property to Dynamic pursuant to the IPA,
      and for Dynamic to license AIS US pursuant to the IPA. 
	 	 

    

     

    NOW THEREFORE IN
CONSIDERATION of the mutual covenants contrained in this agreement and
other good and valuable consideration (the receipt and sufficiency of which are
hereby acknoledged), the parties agree as follows: 

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    ARTICLE 1 

    INTERPRETATION

     

    1.1                     
Definitions

    

    In this
Agreement, the following terms have the following meanings:

     

    "Affiliate" of a Party means a
corporation or other legal entity (a) controlled by the Party, (b) controlling
the Party, or (c) controlled by the corporation or legal entity which controls
the Party, For the purposes of this paragraph, to "control" a corporation or an
entity means to own or control, either directly or indirectly such as by
intermediary entities, (1) more than 50% of the shares or other securities
entitled to vote for election of directors (or other managing authority) of the
corporation or entity; (2) more than 50% of the equity interest of the
corporation or entity, (3) if the corporation or entity does not have
outstanding shares or securities as may be the case in a partnership, joint
venture, or unincorporated association, more than 50% of the ownership interest
representing the right to make decisions for the corporation or entity; or (4)
the maximum shares or other securities entitled to vote for election of
directors (or other managing authority) of a foreign corporation or entity
permitted by law if (i) the applicable country does not permit the Party to own
a greater share due to its nationality and (ii) the foreign corporation or
entity is substantially controlled by the Party. Notwithstanding the foregoing,
any corporation or other legal entity shall be deemed to be an Affiliate only so
long as such control exists,

     

    "AI Canada Intellectual Property"
means Intellectual Property that becomes or became owned, controlled or
licensable by AI Canada, or its Affiliates to extent such Affiliates are not
Affiliates of AI US, during the term of the IPA. Notwithstanding the foregoing,
"AI Canada Intellectual Property" excludes Intellectual Property if (and solely
to the extent) (a) AIS Canada, or such Affiliates as the case may be, would be
obligated to pay royalties or other consideration to a non-affiliated third
party if the Intellectual Property is assigned or licensed to AI US hereunder
and (b) such obligation existed at the time AI Canada, or such Affiliates as the
case may be, acquired its rights in the Intellectual Property.

     

    "Agreement" means this
agreement including the recitals, and all schedules attached to this agreement,
in each case as they may be amended or supplemented from time to
time;

     

    "Group of Companies" means
collectively Dynamic, AI US and AI Canada.

     

    "Business Day" means any day,
other than Saturday, Sunday or any statutory holiday in Canada or the United
States;

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    "Exploit" means make, use,
sell, offer for sale, import, reproduce, distribute (including but not limited
to by sale, rental, lease, or lending), perform, display, modify, adapt, prepare
derivative works of, make substantial and insubstantial alterations,
translate into any language, aggregate, have made, license, sublicense, grant
sublicensing rights, in any medium whatsoever whether now known or hereafter
devised, or otherwise exploit.

     

    "Intellectual Property" means
any and all of the following items that are or were created, authored, invented,
conceived, reduced to practice, made, filed or derived (collectively "created"),
as the case may be, before or during the term of this Agreement (regardless of
the location where it was created):

     

    (a) copyrightable
works, copyrights and computer software (including data and related
documentation), whether or not the subject of a copyright application, copyright
registration or renewed copyright,

     

    (b) inventions
(whether or not the subject of a patent or patent application, and whether or
not reduced to practice), all improvements thereto, conceptions, patents, patent
applications, patent disclosures, industrial designs, utility models, industrial
design applications and industrial registrations,

     

    (c) continuations,
continuations-in-part, divisionals, reissues, reexaminations,
revisions, extensions, substitute applications (as defined in MPEP §
201.09) of patents or patent applications filed before or during the term
of this Agreement, and other patents which claim the benefit of the
filing date of a patent or patent application otherwise filed before or
during
the term of this Agreement, but solely to the extent it claims subject
matter
that was disclosed in a patent or patent application filed before or
during
the term of this Agreement,

     

    (d) moral
rights,

     

    (e) proprietary
or confidential information, trade secrets and know-how, and

     

    (f) any other
proprietary, intellectual or intangible property protected by the law of any
jurisdiction or governmental agency

     

    Notwithstanding
the foregoing, "Intellectual Property" does not include trademarks, service
marks, or similar indicia of origin,

     

    "IPA" means the executed
agreement entitled "Intellectual Property Agreement" between AI US and Dynamic,
a copy of which is attached as Schedule A.

     

    "Party" means any signatory to
this Agreement and "Parties"
means all of them;

     

    "Person" means any individual,
partnership, limited partnership, syndicate, sole proprietorship, company or
corporation with or without share capital, unincorporated association, trust,
trustee, executor, administrator or other legal personal
representative, regulatory body or agency, government or governmental agency,
authority or entity however designated or constituted;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

      "Requester" has the meaning
given to that term in Section 2.3;

       

      "Responder" has the meaning
given to that term in Section 2.3; and

       

      "Services" has the meaning
attributed to that term in Section 2.1.

       

       

      1.2                     
Gender and
Number

    

     

    In this
Agreement, unless the context otherwise requires, words importing the singular
include the plural and vice versa and words importing gender include all
genders.

     

    ARTICLE
2 

    SERVICES
PRODUCTS

     

    2.1                      Services

     

    2.1.1
Subject to this Agreement, the Parties agree to assist each other as required to
provide the following services (collectively, the "Services") for each
other:

     

    •   marketing
and sales support services

     

    •   consulting
services

    

     

    •   research
and development services

     

    •    logistical
services

     

    •    financial
management and support services

     

    •    technical
assistance services

     

    • training
services

     

    • administrative
services

     

    • loan
facilities

     

    • other
services as specifically identified from time to time. 

    
       

      2.2                      Non-Exclusivity

       

      The Parties acknowledge that their respective agreements to provide
assistance as contemplated by this Agreement are on a non-exclusive basis and
that nothing contained in this Agreement will restrict any of them from carrying
out or providing, itself or through any third Person, directly or indirectly,
Services.

    

     

    
      
         

      

      
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    2.3                      Intellectual Property
Rights

     

    The
following provisions in this Section 2.3 shall apply notwithstanding any other
provision to the contrary. In the event of any conflict between this section and
another provision hereunder, the rights and obligations of this section shall
prevail. In the event of any conflict between this Agreement and the IPA, the
rights and obligations of the IPA shall prevail.

     

    
      	(a)   	(i)   	

              AI
      Canada hereby irrevocably assigns to AI US all right, title, and interest,
      throughout the world, in the AI Canada Intellectual Property including the
      right to: reproduce, distribute, perform, display, make, have made,
      modify, adapt, prepare derivative works of, make substantial alterations,
      use, sell, license, grant sublicensing rights, lease, rent, import,
      transfer, collect past damages, obtain and own renewals or extensions
      including copyright renewals, translate into any language or otherwise
      exploit, in any medium whatsoever, whether now known or hereafter devised,
      without any accounting or any other obligation owed to AI Canada, all to
      the maximum extent permitted by law. As between AI US and AI Canada, AI US
      shall retain ownership of the AI Canada Intellectual Property regardless
      of any termination or the basis of termination of this Agreement. As
      between AI US and AI Canada, AI US has sole discretion to register,
      enforce or protect the AI Canada Intellectual Property, including filing
      and controlling copyright applications and patent applications in its own
      name, including continuations, continuation-in-parts, divisionals,
      reissues, reexaminations or any other patent application which claims the
      benefit of the filing date of a patent or application assigned to Dynamic.
      To the extent permissible by law including Copyright Law and without
      implying an employee-employer relationship between AI Canada and AI US, AI
      Canada agrees that AI Canada Intellectual Property is "work made for hire"
      owned solely by AI US.

            
	 	 	 
	 	(ii)   	

              AI
      Canada, subject to the provisions of this Agreement, hereby waives all of
      its moral rights in all works.

               

            
	(b)   	
              In
      the event AI Canada is prohibited by law or contract from assigning
      particular AI Canada Intellectual Property to AI US, AI Canada shall, to
      the maximum extent permitted by law or contract, grant AI US a fully paid
      up, worldwide and perpetual license under the AI Canada Intellectual
      Property to Exploit any product or service. Such license shall be
      exclusive to the maximum extent permitted by law or
      contract.

               

            
	(c)   	
              AI
      Canada warrants that all AI Canada Intellectual Property that becomes or
      became owned, controlled or licensable by AI Canada's Affiliates to extent
      such Affiliates are not Affiliates of AI US, before or during the
      Term
      of the IPA shall be assigned to AI Canada for assignment or licensing to
      AI US pursuant to this Section 2.3.

               

            
	(d)   	

              AI
      Canada warrants that it will not take any action or permit a material
      omission which interferes with or prevents Dynamics' rights under the
      IPA.

               

            
	    (e)   	

              The
      rights and obligations between Dynamic and AI US with respect to
      Intellectual Property are governed by the PA.

               

            
	(f)   	

              The
      rights and obligations of this Section 2.3 shall terminate upon the
      termination of the IPA regardless of the Term of this Agreement, except
      that any rights acquired by AI US pursuant to this Section 2.3 and prior
      to the termination of the IPA shall survive the termination of the IPA and
      this Agreement.

            

    

     

    
      
         

      

      
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    2.4                     
Requests for
Assistance

     

    Whenever
a Party (the "Requester")
requires Services to be provided by a third Person, the Requester may,
but need not, by notice as contemplated by this Agreement or as otherwise agreed
by the Parties from time to time, offer the opportunity to perform the Services
to any one or more of the other Parties. Any Party that, within 3 Business Days
after receipt of the notice provided for in Section 2.5, expresses willingness
to assist the Requester is referred to below as a "Responder".

    

    2.5                     
Notice to be
Provided

    

    If a
Requester anticipates that it will require another member of the Group to
provide Services, the Requester will notify the relevant other Parties,
providing as much prior notice as is practicable and specifying, to the extent
possible, the nature of the Services to be provided, any timing deadlines or
constraints, and any further information that may reasonably be required by a
Responder.

    

     

    2.6                     
Performance by
Responders

    

    The
Responders will perform their duties under this Agreement honestly and in good
faith with a view to the best interests of the Group of Companies.

     

    2.7                     
Performance by Third
Parties

     

    With
consent of the Requester, any Service to be performed by a Responder may be
performed by a third party with whom the Responder has entered into an
arrangement or agreement relating to the provision of that Service, provided
that agreement contains provisions in favour of the Requester which are no less
favourable than those contained in this Agreement.

     

    
      
         

      

      
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      2.8                     
Remuneration for
Services

    

    

    The fees
for Services provided by the Responders to the Requesters will be agreed to by
the Parties on a comparable basis to arm's length pricing.

     

    2.9                     
Other
Activities

    

    The
Parties acknowledge the possibility that each of them may provide services to
third parties. Each Party will be free to pursue these opportunities, subject
only to maintaining its capacity to perform Services it has agreed to provide
and to fulfilling its obligations as described in this Agreement

    

    ARTICLE
3 

    LIABILITY

     

    3-1                     
Limitation of
Liability

    

    A
Responder's entire liability and a Requester's exclusive remedy for damages
resulting from a Responder's performance or non-performance related in any way
to any Services provided under this Agreement will be recovery of actual
damages. This limitation will apply regardless of the form of action, whether
based on contract or tort, including negligence.

     

    IN NO
EVENT WILL A RESPONDER BE LIABLE FOR SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES
(EVEN IF THE RESPONDER HAS BEEN ADVISED OF THE POSSIBILITY OF THIS LOSS)
INCLUDING BUT NOT LIMITED TO, LOST BUSINESS REVENUE, FAILURE TO REALIZE EXPECTED
PROFITS OR SAVINGS OR OTHER COMMERCIAL OR ECONOMIC LOSS OF ANY KIND, OR ANY
CLAIM AGAINST A REQUESTER BY ANY OTHER PARTY.

    

    ARTICLE
4 

    TERM AND
TERMINATION

     

    4.1                     
Effective
Date

    

    This
Agreement will take effect as of December 9, 2005.

     

    4.2                     
Term

    

    Subject
to earlier termination in accordance with its terms, this Agreement will remain
in force as long as the IPA is in force and will terminate contemporaneously
with the IPA without notice.

    

    4.3                     
Insolvency.
Etc.

    

    Any Party may terminate this
Agreement immediately by
written notice upon the other Party being adjudged bankrupt or filing a
voluntary petition in bankruptcy or similar legislation for the relief of
debtors, or making an assignment for the benefit of creditors generally, or upon
any proceedings for dissolution or liquidation being commenced (except for purposes
of amalgamation or reconstruction) or upon a receiver, manager or
receiver-manager bemg appointed in respect of its undertaking or all or a
substantial part of it proceedings or whose appointment is not vacated or
discharged wimin 30 days.

    

    
      
         

      

      
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Default

     

    Any party
may terminate this agreement upon any material breach of it by any other Partv
by giving
30 days' prior written notice to that Party specifying the alleged breach,
provided
that the breach is not cured within the 30 day period. 

     

    4.5                     
Effect
of Termination

    

    Termination
or expiry of this Agreement will be without prejudice to the rights of the
Parties accrued up to the date of termination or expiry of this
Agreement.

     

    The
provisions of Sections 2.3 and 3.1 will remain in force and effect after
termination or expiration of this Agreement, until the Parties may mutually
agree to the release of the obligations contained therein.

    

    ARTICLE
5 

    GENERAL

     

    5.1                     
Governing Law and
Attornment

     

    This
Agreement will be deemed to have been entered into in the State of Delaware, and
will be governed by the laws in force in Delaware. The Parties irrevocably
attorn to the non-exclusive jurisdiction of the courts of Delaware.

     

    5.2                      Public
Notices

     

    No press
release or other announcement concerning the transaction contemplated by this
Agreement may be made by any Party, without the prior written
consent of the other Parties, not to be unreasonably
withheld.

     

    5.3                     
Relationship of
Parties

     

    The
relationship of the Parties established by this Agreement is that of independent
contractors, and nothing contained in this Agreement is to be construed to
constitute the Parties as partners, joint venturers, co-owners or otherwise as
participants in a joint venture or common undertaking.

     

    5.4                     Further
Assurances

     

    The
Parties will each, as reasonably required by the other, enter into agreements,
execute documents and otherwise do all things as may be necessary or desirable
to carry into full force and effect the intentions of this
Agreement.

     

    
      
         

      

      
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      5.5                     
Assignment

    

     

    Limited Assignment
Rights. No Party shall have the right to assign or transfer any of its
rights and obligations under this Agreement (in insolvency proceedings, by
mergers, acquisitions or otherwise) without the other Partys' written consent
except that all rights and obligations may be assigned to an Affiliate or third
party where the assignment is in connection with the sale, reorganization or
other transfer of substantially all of the relevant business of the assigning
party.

    

    Termination Option.
Upon receiving notice of the assigning Party's assignment of or intent to assign
this Agreement, the other Party may terminate this Agreement by providing notice
to the assigning Party within thirty (30) days of such notice of assignment or
intent to assign. If the assignment occurs and this Agreement is terminated in
accordance with this paragraph, then termination shall be effective the moment
before the assignment. AI US shall not have the option to terminate the
Agreement in accordance with this paragraph if the assigning party is AI Canada,
and AI Canada shall not have the option to terminate the Agreement in accordance
with this paragraph if the assigning party is AI US.

     

    Change in Ownership.
Any change in ownership of a Party that results in a change in control of a
Party shall be deemed an assignment to a third party for the purposes of this
paragraph.

    

    Void Assignments. Any
assignment or other transfer of rights and obligations hereunder which is
inconsistent with the foregoing shall be null and void ab initio.

     

    5.6                     
Severability

     

    If any
provision of this Agreement is held invalid by a tribunal of competent
jurisdiction, the remaining provisions will nevertheless remain in full force
and effect.

     

    5.7                    
 Notices

     

    Any
notice or other communication to be given or made under this Agreement including
a notice to effect a change in a Party's address for notice, must be in writing
addressed to the current head office of that Party and will be deemed to
have been duly given or made on the earliest of the following:

     

    • actual
delivery

     

    • 48 hours
after being sent by commercial courier service; and

     

    • the day
following which any e-mail, facsimile or telegram message is sent. 

     

    5.8                     
Time of
Essence

     

    Time is
of the essence of this Agreement.

    

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    5.9                     
Limitation of Extent of
Agreement

    

    This
Agreement is subject and subordinate to any other agreement between any all of
the Parties that deals specifically with any matter addressed in this
Agreement.

     

    5.10                   
Entire Agreement.
Waiver

    

    Subject
to Section 5.9, this Agreement constitutes the entire agreement between the
Parties pertaining to the subject matter hereof. There are no warranties,
conditions, or representations (including any that may be implied by statute)
and there are no agreements in connection with this subject matter except as
specifically set forth or referred to in this Agreement. Except as expressly
provided in this Agreement, no amendment or waiver of this Agreement will be
binding unless executed in writing by the Party to be bound thereby. No waiver
of any provision of this Agreement will constitute a waiver of any other
provision nor will any waiver of any provision of this Agreement constitute a
continuing waiver unless otherwise expressly provided.

    

    5.11                   
Breach of One
Party

     

    In the
event a Party breaches this Agreement ("Breaching Party") and another Party
("Acting Party") chooses to take action against the Breaching Party, then such
action shall only affect the rights and obligations between the Breaching Party
and the Acting Party. The rights and obligations between the Breaching Party and
the remaining Parties (if any), and the Acting Party and the remaining Parties
(if any), shall remain unaffected.

     

    5.12                   
Counterparts

     

    This
Agreement may be signed in counterparts and each counterpart will constitute an
original document and all counterparts, taken together, will constitute one and
the same instrument.

    

     

    5.13                  
 Counsel

    

    Each
Party acknowledges that, in connection with the negotiation and execution of
this Agreement, it had the opportunity for independent legal advice by counsel
of its own selection and experienced in the relevant subject matter areas and
domiciles of the Parties, that each Party fully understands the facts, that each
Party has been fully informed as to its legal rights and obligations, and that
each Party is signing the Agreement freely and voluntarily.

     

     

    
      
         

      

      
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    IN
WITNESS WHEREOF THE PARTIES HAVE EXECUTED THIS AGREEMENT WITH EFFECT AS OF THE
9TH DAY OF DECEMBER, 2005.

     

    
      
        	 	DYNAMIC
      INTELLIGENCE INC. 	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Barry
      Skinner	 
	 	 	Barry
      Skinner	 
	 	 	President	 
	 	 	 	 

      

    

     

    
      
        	 	AIRLINE
      INTELLIGENCE SYSTEMS INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Stephen
      Johnston	 
	 	 	Stephen
      Johnston	 
	 	 	President	 
	 	 	 	 

      

      
        	 	AIRLINE
      INTELLIGENCE SYSTEMS INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Harrold
      Roy Miller	 
	 	 	Harrold
      Roy Miller	 
	 	 	President	 
	 	 	 	 

      

    

     

     

    
      
         

      

      
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    SCHEDULE
A

     

     

    Intellectual
Property Agreement between AI US and Dynamic (the "IPA")

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

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        12f8k0310ex10viii_wolf.htm

    Exhibit 10.8

     

    EXCHANGE
RIGHT AGREEMENT

     

    This
Exchange Right Agreement (this "Agreement*)
is made effective as of January 28, 2010, by and between Airline
Intelligence Systems Inc., a Delaware corporation (the "Company"),
and Merus Capital I, L.P. ("Merus").

     

    RECITALS

     

    A.          Merus
is presently a holder of shares of Common Stock of the Company ("Common
Stock").

     

    B.          Prior
to the date hereof, Merus provided the Company with emergency debt financing
in exchange for, among other things, the Company providing Merus with the
exchange right
provided for herein with respect to the Merus Securities.

     

    C.          The
Company is contemplating entering into a Going Public Transaction (as
defined
below) and this Agreement will not be triggered by, and will survive, such
transaction.

     

    AGREEMENT

     

    For good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

     

    1.   Definitions. Whenever used herein, the
following definitions shall govern this Agreement:

     

    "Board"
means the Board of Directors of the Company.

     

    "Buyer"
means the person or entity that purchases the Company's business pursuant
to a Liquidation Transaction.

     

    "Contingent
Acquisition Consideration" is the aggregate amounts paid after the
Closing on a contingent basis, or following the expiration of an
indemnification, escrow or holdback period, or in connection with an earn-out
to: (i) the Company in a sale of all or substantially all of its assets or a
license of all or substantially all of the Company's intellectual property
assets; or (ii) the shareholders of the Company in a merger, consolidation,
statutory or contractual share exchange or other transaction that constitutes a
Liquidation Transaction, in each case but for the operation of this Agreement
and repayment of the Promissory Note; provided, that such
amount shall not include (1) any amounts payable to officers, directors or
employees of the Company by the Buyer in connection with any agreements) not to
compete or similar arrangements) or as salary, bonus or consulting fees for
services rendered after the Closing, or (2) any amounts payable in connection
with administration of the indemnification, holdback, escrow or earn-out
provision.

     

    "Closing"
means the closing of the Liquidation Transaction as determined pursuant
to the agreements providing for such event.

     

    "Going Public
Transaction" means a transaction or a series of transactions that results
in the Company (including any successor in interest) becoming a majority-owned
subsidiary of a company ("Parent)
that is subject to the reporting obligations under Section 13 or 15(d) of
the United
States Securities Exchange Act of 1934, as amended, and following which the
stockholders of the Company own 50% or more of the voting power of the
outstanding securities of Parent at the closing of the transaction.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    "Liquidation
Transaction" means the first to occur of the following transactions or
series of related transactions: (a) the sale, conveyance or other disposition of
all or substantially all of the Company's property or business (including the
exclusive licensing of all or substantially all of the Company's intellectual
property to a third party), (b) other than a Going Public Transaction, the
consummation by the Company of any corporate reorganization, share exchange or
recapitalization, or merger with or into, or consolidation with, any other
corporation, limited liability company or other entity if the holders of shares
of capital stock of the Company sell or otherwise transfer in such transaction,
to any person or group of persons acting jointly or in concert, shares of the
Company's capital stock representing 50% or more of the voting power of the
stockholders of the Company or (c) the determination by the Board to liquidate,
dissolve, wind up or otherwise cease the regular business operations of the
Company; provided,
however. that none of the following transactions shall be considered a
Liquidation Transaction: (x) a merger effected exclusively for the purpose of
changing the domicile of the Company, (y) a merger or consolidation with a
wholly owned subsidiary of the Company, or (z) an equity financing in which the
Company is the surviving corporation, The Board shall have the right in its
reasonable discretion to determine whether multiple sales or exchanges of the
voting securities of the Company or multiple Liquidation Transactions are
related, and its determination shall be final, binding and
conclusive.

     

    "Merus Securities" means the following
outstanding equity securities of the company issued to Merus.

     

    2.   Exchange in Connection with
a Liquidation Transaction.

     

    2.1   Liquidation
Transaction. In the event a Liquidation Transaction occurs during the
term of this Agreement, Merus shall have the irrevocable right (the "Exchange Right')
to exchange all of the Merus Securities for an unsecured promissory note
(the "Promissory
Note") in the principal amount equal to the lesser of (A) the product of
$5 million multiplied by a fraction, the numerator of which is equal to the
aggregate number of Merus Securities outstanding immediately prior to the
Election Date (as defined below), without taking into account the exercise of
the Exchange Right, and the denominator of which is equal to the total number of
Merus Securities outstanding as of the date hereof (as adjusted pursuant to any
stock split, stock dividend, recapitalization or similar event), in each case
calculated on an as-converted to Common Stock basis, and (B) the aggregate
amount of the consideration, including Contingent Acquisition Consideration, if
any, payable in the Liquidation Transaction after payment of the Obligations (as
defined below), without taking into account the exercise of the Exchange Right,
subject to the terms and conditions set forth in Sections 2.2 and 2.3 below
(collectively,
the "Payment
Obligation"). The Promissory Note shall bear interest at a rate equal to
the minimum rate established pursuant to Section 1274(d) of the Internal Revenue
Code of 1986, as amended, as of the Election Date. The Promissory Note shall be
payable in full on the Closing of the Liquidation Transaction; provided,
however, that in the event the Liquidation Transaction contemplates the payments
of any Contingent Acquisition Consideration, the Company will take such actions
as are necessary to provide that any unpaid obligations under the Promissory
Note outstanding as of the Closing shall be paid (1) by the Company promptly
following its receipt of any Contingent Acquisition Consideration, in the event
that the Liquidation Transaction is an asset sale, and (2) by Buyer or the
Company's paying agent or such other person designated to distribute the
consideration to the Company's stockholders, promptly following their respective
receipt of any Contingent Acquisition Consideration, in the event that the
Liquidation Transaction is not an asset sale, subject to the terms and
conditions set forth in Sections 2.2 and 2.3 below, and shall have the terms
contemplated in Section 2.4, 2.5 and 2.6. The obligations under the Promissory
Note shall be subordinate in right of payment to (i) any costs and expenses
incurred by the Company and directly associated with completing the Liquidation
Transaction, including (without limitation) legal, accounting, and banking fees,
(ii) any wind-down costs of the Company, and (hi) all amounts paid or payable in
order to satisfy or extinguish liabilities to vendors, creditors or other third
parties (without duplication to the items set forth in the proviso in (i) above)
(collectively, "Obligations").
A form promissory note is attached hereto as Exhibit
A.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.2           Election Terms and
Conditions.

     

    (a) Subject
to Merus receiving timely notice pursuant to Section 2.3 below, if Merus f|ils
to exercise its Exchange Right at least five (5) calendar days prior to fhe
anticipated Closing, the Exchange Right shall lapse and Merus shall only have
the rights applicable to the Company's equity holders in such
transaction.

     

    (b) In the
event that Merus properly exercises its Exchange Right, the Merus Securities
shall be deemed cancelled and terminated in their entirety upon the receipt by
Merus of the Promissory Note.

     

    2.3   Election
Mechanics.

     

    (a) The
Company shall give Merus written notice of any impending Liquidation Transaction
not later man twenty (20) calendar days prior to the stockholders' meeting (or
execution of an action taken by written consent) to approve such Liquidation
Transaction, or twenty (20) calendar days prior to the closing of such
Liquidation Transaction, whichever is earlier. Such notice shall describe the
material terms of the impending Liquidation Transaction.

     

    (b) At least
five (5) calendar days prior to the anticipated Closing, Merus may, by written
notice provided to the Company (the "Election Date"),
exercise its Exchange Right as provided above. Such exercise shall be
final and irrevocable and shall be conditioned only on the consummation of the
Liquidation Transaction.

     

    2.4   Form of Payment. The
Promissory Note shall provide that it may be satisfied
with cash or with such other consideration as provided to the Company's
stockholders or the
Company, as the case may be, in the Liquidation Transaction. The value of any
non-cash consideration
shall be determined by the Board in good faith and shall not be inconsistent
with the value of like consideration in the Liquidation Transaction, Any
restrictions on delivery, or subsequent transfer, of such consideration imposed
by a Buyer on the Company or its stockholders shall likewise apply to the
consideration paid in satisfaction of the Promissory Note. Merus shall execute
and deliver upon request such acknowledgments as the issuer of such
consideration may reasonably request to evidence Merus' obligations to comply
with such restrictions.

     

    2.5   Restricted
Securities. Notwithstanding anything contained in this Agreement to the
contrary, if the Promissory Note is satisfied with common stock or other
securities that are not issued pursuant to a registration statement declared or
ordered "effective" under the Securities Act of 1933, as amended, then Merus
shall agree to comply with applicable securities laws with respect to any
transfer of such common stock or other securities. Merus shall be entitled to
the same registration rights with respect to the securities it receives in the
Liquidation Transaction as are granted to any other holder of the Company's
equity securities in connection with a Liquidation Transaction.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    2.6   Payment in Connection with a
Liquidation and Dissolution. If the Board and the stockholders of the
Company determine to consummate a liquidation and dissolution of the Company,
and Merus elects to exercise the Exchange Right, then Merus shall have the
rights of an unsecured general creditor of the Company that is subordinate in
right of payment to the Obligations.

     

    3.   General
Provisions.

     

    3.1   Obligations Unfixnded: No
Trust. The liability of the Company to pay the Promissory Note is based
solely on the contractual obligations created by the Promissory Note, if and
when it is issued. This Agreeement constitutes a mere promise by the Company to
exchange the Merus Securities for the Promissory Note. The interest of Merus in
the Promissory Note is an unsecured claim against the general assets of the
Company that is subordinate in right of payemnt to the Obligations. Merus does
not have any interest in any fund or in any specific asset of the Company by
reason of any amounts credited or deemed to be credited thereunder. Accordingly,
the Promissory Note will not be secured by any trust, pledge, lien or
encumbrance on any property of the Company or on the assets of any benefit
trust, and nothing contained in this Agreement nor in the Promissory Note and no
action taken pursuant to the provisions of any related agreements shall create
or be construed to create a trust of any kind.

     

    3.2   Representations,Warranties
and Covenants of the Company. The Company hereby represents, warrants and
covenants to Merus that;

     

    (a) 
Organization, Good
Standing and Qualification. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware.
The Company has the requisite corporate power and authority to own and operate
its properties
and assets, to carry on its business as presently conducted or proposed to be
conducted,
to execute and deliver this Agreement, to issue Promissory Note, and to perform
its obligations
pursuant to this Agreement and as contemplated pursuant to the Promissory
Note.

     

    (b) 
Authorization.
All corporate action on the part of the Company and its
directors, officers and stockholders necessary for the authorization, execution
and delivery of this
Agreement, the issuance and delivery of the Promissory Note, and the performance
of all of the Company's obligations under this Agreement has been taken. Without
limiting the foregoing, all of the members of the Board and the holders of not
less than a majority of the Common Stock (not including shares of Common Stock
held by Merus) have approved this Agreement and the transactions contemplated
hereby. This Agreement and the Promissory Note, when executed and delivered by
the Company, shall constitute valid and binding obligations of the Company
enforceable in accordance with their terms.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c) 
No Conflicts.
The execution and delivery of this Agreement by the Company, and the performance
by the Company of its obligations pursuant to this Agreement and the Promissory
Note, will not result in any material violation of, or materially conflict with,
or constitute a material default under, the Company's Certificate of
Incorporation or Bylaws, each as amended to date, or any of its agreements, nor,
to the Company's knowledge, result in the creation of any material mortgage,
pledge, lien, encumbrance or charge upon any of the properties or assets of the
Company or the suspension, revocation, impairment, forfeiture or nonrenewal of
any permit, license, authorization or approval applicable to the Company, its
business or operations or any of its assets or properties.

     

    3.3   Assignment. Neither
this Agreement nor the Promissory Note is transferable by the Company and any
attempt to assign, pledge or encumber this Agreement or the Promissory Note or
any of the rights or obligations hereunder or thereunder shall be void. With the
prior written consent of the Company, Merus may assign this Agreement, in whole
or in part, in connection with the transfer of all or any of the Merus
Securities, or the Promissory Note; provided that the assignee(s) agrees to be
bound by the terms of this Agreement.

     

    3.4   Successors and
Assigns. Subject to Section 3.3 above, the terms and conditions of this
Agreement shall inure to the benefit of and bind the Company and Merus, and
their respective successors and assigns.

     

    3.5   Term. This Agreement
and the Exchange Right shall terminate on the date that is the earlier of (i) 36
months following any Going Public Transaction; (ii) upon receipt by Merus of the
Promissory Note after exercising the Exchange Right; and (iii) if Merus
transfers any of the Merus Securities without the prior written consent of the
Company.

     

    3.6   Waiver. Either
party's failure to enforce any provision of this Agreement shall not in any way
be construed as a waiver of any such provision, or prevent that party thereafter
from enforcing each and every other provision of this Agreement.

     

    3.7   Severability. In the
event any provision of this Agreement is found to be unenforceable by an
arbitrator or court of competent jurisdiction, such provision shall be deemed
modified to the extent necessary to allow enforceability of the provision as so
limited, it being intended that the parties shall receive the benefit
contemplated herein to the fullest extent permitted by law. If a deemed
modification is not satisfactory in the judgment of such arbitrator or court,
the unenforceable provision shall be deemed deleted, and the validity and
enforceability of the remaining provisions shall not be affected
thereby.

     

    3.8   Interpretation
Construction. The headings set forth in this Agreement are for
convenience only and shall not be used in interpreting this Agreement. Legal
counsel representing
the Company has drafted this Agreement, but Merus has participated in the
negotiation
of its terms. Furthermore, Merus acknowledges that Merus has had an opportunity
to review and revise, and has reviewed and revised, the Agreement and has had it
reviewed by legal counsel and, therefore, the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.9   Tax Advisors. Merus
has reviewed with its own tax advisors the U.S. federal, state, local and
foreign tax consequences of this Agreement and the transactions contemplated by
the Agreements. With respect to such matters, Merus relies solely on such
advisors and not on any statements or representations of the Company or any of
its agents, written or oral. Merus understands that it shall be responsible for
its own tax liability that may arise as a result of this Agreement or the
transactions contemplated by the Agreement.

     

    3.10   Governing Law. This
Agreement will be governed by and construed in accordance with the laws of the
United States and the State of Delaware.

     

    3.11   Jurisdiction/Venue.
Each party consents to the non-exclusive jurisdiction and venue of the state or
federal courts in the State of Delaware, if applicable, in any action, suit or
proceeding arising out of or related to this Agreement. In the event that any
suit or action is instituted to enforce any provisions in this Agreement, the
substantially prevailing party in such dispute shall be entitled to recover from
the losing party such reasonable fees and expenses of attorneys and accountants,
which shall include, without limitation, all fees, costs and expenses of
appeals.

     

    3.12   Notices. Any notice
required or permitted by this Agreement shall be in writing and shall be
delivered as follows with notice deemed given as indicated: (a) by personal
delivery when delivered personally; (b) by overnight courier upon written
verification of receipt; (c)by telecopy or facsimile transmission upon
acknowledgment of receipt of electronic transmission; or (d) by certified or
registered mail, return receipt requested, upon verification of receipt. Notice
shall be sent to the addresses set forth below, or such other address as either
party may specify in writing.

     

    
      	 	 If to the Company:
	 	 
	 	Airline Intelligence Systems, Inc.

              Attn: President 

              3500 Carillon Point 

              Kirkland, Washington 98006

            
	 	 
	 	 If to
      Merus:
	 	 
	 	
              Merus Capital I, L.P.

              Attn: Salman Ullah

              300 Hamilton Avenue Suite 400

              Palo Alto, CA 94301

            

    

     

    3.13   Counterparts. This
Agreement may be executed in two counterparts, each of which
will be deemed to be an original copy of this Agreement and both of which, when
taken together,
will be deemed to constitute one and the same agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.14   Entire Agreement.
This Agreement constitute the entire agreement between the parties relating to
this subject matter and supersedes all prior or simultaneous representations,
discussions, negotiations, and agreements, whether written or oral. This
Agreement may be amended or modified only with the written consent of Merus and
the Company. No oral waiver, amendment or modification will be effective under
any circumstances whatsoever.

     

     

     

     

    [The
remainder of this page is intentionally left blank.]

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, this Agreement has been
executed effective as of the date first written above,

     

    
      
        	AIRLINE INTELLIGENCE SYSTEMS
      INC.	 
	 	 	 
	 	 	 
	By:	
                /s/ Stephen Johnston

              	 
	 	
                Name: Stephen Johnston 

              	 
	 	
                Title: President & CEO

              	 
	 	 	 
	 	 	 
	MERUS CAPITAL X,	 
	 	 	 
	By:	
                Merus
      Capital Management L.L.P. 

                Its
      General Partner

              	 
	 	 	 
	By:	/s/ Salman Ullah	 
	 	Name: Salman Ullah	 
	 	Title: Managing  Director	 

      

    

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

     

    EXHIBIT
A FORM OF PROMISSORY NOTE

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
       

      PROMISSORY
NOTE

    

    

     

    
      	Maximum Amount:
      $__________ 	Date of
      Issuance:__________,20__________ 

    

     

    FOR VALUE RECEIVED, the
undersigned, Airline Intelligence Systems Inc., a Delaware corporation
("Debtor"), promises to pay to Merus Capital I, L.P. ("Creditor"), the Principal
Amount (as defined below) and accrued interest thereon. This Promissory Note
(this "Note") is made and delivered pursuant to that certain Exchange Right
Agreement dated as of January 28, 2010 between Debtor and Creditor, as such may
be amended from time to time (the "Exchange Agreement*). Unless otherwise
defined herein, all capitalized terms used In this Note shall have the same
meanings that are given to such terms in the Exchange Agreement, the terms of
which are incorporated into this Note by reference.

     

    A.   Payment Terms.

     

    1.   Principal and Interest Payment. The
Principal Amount hereunder and the interest accrued and unpaid with respect
thereto (collectively, the "Obligation^') shall be due and payable at the
Closing (the "Maturity Date"); provided, however, that, in the event the full
amount of the Obligations are not repaid at the Closing because the Liquidation
Transaction includes Contingent Acquisition Consideration and the amount payable
at the Closing is less than the Obligations, such unpaid Obligations shall be
paid upon, and out of, the payment of any Contingent Consideration Payments;
provided, further, however, the entire principal and accrued and unpaid
interest, fees, costs and expenses, if any, shall be due and payable if an Event
of Default (as defined below) occurs, all as provided in Section B
below.  For purposes of this Note, the "Principal Amount' shall mean
$_______________ , which is the aggregate amount of the Payment Obligation,
as set forth and determined in accordance with the Exchange Agreement.

     

    2.   Interest. Interest shall accrue with
respect to the principal sum hereunder at the greater of: (a) five percent
(5.00%) per annum and (b) the minimum rate necessary to avoid imputed interest
under the Internal Revenue Code of 1986, as amended. Interest payable hereunder
shall be calculated on the basis of a three hundred sixty (360) day year,
comprised of 12,30-day months, for actual days elapsed.

     

    3.   Application of Payments. Any payment
received from Debtor shall be first applied to the accrued interest and then to
the principal.

     

    4.   Prepayment. Debtor shall have the
right at any time and from time to time to prepay, in whole or in part, the
principal of this Note, without payment of any premium or penalty. Any principal
prepayment shall be accompanied by a payment of all interest accrued and unpaid
on the amount deemed satisfied as a result of such prepayment through the date
of such prepayment.

     

    5.   Form of Payments. Principal and
interest and all other amounts due hereunder are to be paid in lawful money of
the United States of America in federal or other immediately available
funds.

     

    6.   Right to Set-off. The Debtor hereby
has a right to set-off and/or apply any and all amounts owed to Debtor, its
subsidiaries and affiliates by Creditor, its subsidiaries and affiliates
pursuant to any agreement or arrangement between Debtor, Creditor and/or their
respective subsidiaries and affiliates, against any all amounts owed by Debtor
to Creditor pursuant to this Note. Neither the exercise nor failure to exercise
such right of set-off will constitute an election of remedies or limit the
Debtor, its subsidiaries and affiliates in any manner in the enforcement of any
other remedies that may be available to it under this Note or any other
agreement or arrangement between Debtor, Creditor and/or their respective
subsidiaries and affiliates.

     

    B.   Events of Default.

     

    1.   DEFINITION OF EVENT OF DEFAULT. THE
OCCURRENCE OF ANY ONE OR MORE OF THE FOLLOWING EVENTS SHALL CONSTITUTE AN "EVENT
OF DEFAULT' HEREUNDER:

     

    a)    Debtor's breach of
the obligation to pay any amount payable hereunder within five (5) days after
the date that it is due and payable;

     

    b)    Debtor's institution
of proceedings against it, or Debtor's filing of a petition or answer or consent
seeking reorganization or release, under the federal Bankruptcy Code, or any
other applicable federal or state law relating to creditor rights and remedies,
or Debtor's consent to the filing of any such petition or the appointment of a
receiver, liquidator, assignee, trustee or other similar official of Debtor or
of any substantial part of Its property, or Debtor's making of an assignment for
the benefit of creditors, or the taking of corporate action in furtherance of
such action; or

     

    c)    the entry of any
judgment or order against Debtor which could reasonably be expected to have a
material adverse effect on Debtor's business and which remains unsatisfied or
undischarged and in effect for thirty (30) days after such entry without a stay
of enforcement or execution,

     

    2.   RIGHTS AND REMEDIES ON EVENT OF
DEFAULT. UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, AS PROVIDED IN
SECTION A.2 ABOVE, CREDITOR MAY DECLARE THE PAYMENT OF THE AMOUNTS DUE BY DEBTOR
HEREUNDER AND ENFORCE THIS NOTE BY EXERCISE OF THE RIGHTS AND REMEDIES GRANTED
TO IT BY APPLICABLE LAW.

     

    C.   Other Provisions.

     

    1.   Governing Law. Time: Venue: Attorney's
Fees. This Note shall be governed by Delaware law, without giving effect to
conflicts of law principles. Time is of the essence hereunder. Each party
consents to the non-exclusive jurisdiction and venue of the state or federal
courts in the State of Delaware, if applicable, in any action, suit or
proceeding arising out of or related to this Note. In the event that any suit or
action is instituted to enforce any provisions in this Note, the substantially
prevailing party in such dispute shall be entitled to recover from the losing
party such reasonable fees and expenses of attorneys and accountants, which
shall include, without limitation, all fees, costs and expenses of
appeals.

     

    2.   Notices. All notices, demands and
other communications which a party may desire, or may be required, to give to
another shall be in writing, shall be delivered personally against receipt, or
sent by recognized overnight courier service, or mailed by registered or
certified mail, return receipt requested, postage prepaid, or sent by telecopy,
and shall be addressed to the party to be notified as follows:

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	If to
      Debtor:  	Airline Intelligence
      Systems Inc. 

              3500 Carillon Point 

              Kirkland, WA 98033. USA 

              Fax: (425)696-0451

            
	 	 	 
	 	If to
      Creditor:   	Merus Capital I, L.P.

              Attn: Salman Ullah

              300 Hamilton Avenue Suite 400

              Palo Alto, CA 94301

              Fax:_______________                            

            

    

      

    Any such notice, demand, or communication shall
be deemed given when received if personally delivered or sent by overnight
courier, or when deposited in the United States mails, postage prepaid, if sent
by registered or certified mail, or when answerback received, if sent by
telecopier. A party's address may be changed by notice given in accordance with
this subsection.

     

    3.   Creditor's Rights. Debtor Waivers.
Creditor's failure to exercise any right hereunder, shall not constitute a
waiver of any obligation of Debtor hereunder, or any right of Creditor
hereunder, and shall not affect in any way the right to require full performance
at any time thereafter. Debtor waives presentment, diligence, demand of payment,
notice, protest and all other demands and notices in connection with the
delivery, acceptance, performance, default or enforcement of this Note. In any
action on this Note, Creditor need not produce or file the original of this
Note, but need only file a photocopy of this Note certified by Creditor be a
true and correct copy of this Note in ail material respects.

     

    4.   Severability. Whenever possible each
provision of this Note shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision is prohibited by or invalid
under applicable law, it shall be ineffective to the extent of such prohibition
or invalidity, without invalidating the remainder of the provision or the
remaining provisions of this Note.

     

    5.   Amendment Provisions. Entire
Agreement. This Note may not be amended or modified, nor may any of its terms be
waived, except by written instruments signed by Debtor and Creditor, This Note
represents the final agreement of Debtor and Creditor as to all matters
addressed herein and supersede all previous agreements, negotiations, and
discussions by the parties regarding the subject matters addressed herein.

     

    6.   Binding Effect. This Note shall be
binding upon, and shall inure to the benefit of, Debtor and Creditor and their
respective successors and assigns; provided, however, that Debtor's rights and
obligations shall not be assigned or delegated, other than in connection with a
Liquidation Transaction and in accordance with the Exchange Agreement, without
Creditor's prior written consent, given in its sole discretion, and any
purported assignment or delegation without such consent shall be void ab_
initio.

     

    [Remainder ofpage intentionally left
blank]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN
MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT
ENFORCEABLE UNDER WASHINGTON LAW.

    

    
      
        	 	AIRLINE INTELLIGENCE SYSTEMS
      INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Stephen
      C. Johnston	 
	 	 	President
      and Chief Executive Officer	 
	 	 	 	 

      

     

    
      
        
        

      

      
        12

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