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EXHIBIT 10.1    
    

 
 

WAIVER TO LOAN AGREEMENT    
    

        THIS WAIVER TO LOAN AGREEMENT, dated as of January 10, 2005 (this "Waiver"), is
made and entered into by and between World Airways, Inc., a Delaware corporation (the "Borrower"), and the Air Transportation Stabilization Board
(the "Board"). The Borrower, Govco Incorporated as Primary Tranche A Lender, Citibank, N.A. as Alternate Tranche A Lender, Collateral Agent and Agent,
Citicorp North America, Inc. as Govco Administrative Agent, Citicorp USA, Inc. as Tranche B Lender, Phoenix American Financial Services, Inc. as Loan Administrator, and the Board
are parties to that certain $30,000,000 Loan Agreement, dated as of December 30, 2003 (as the same may be amended, restated or supplemented or otherwise modified from time to time, the
"Loan Agreement"). The Borrower and the Board are sometimes herein individually referred to as a "Party"
and, collectively, as the "Parties." 

        Capitalized
terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Loan Agreement. 

W I T N E S S E T H:  

        WHEREAS, the Borrower has informed the Board that the Borrower intends to effect a restructuring transaction (the
"Transaction") pursuant to the terms and conditions of an Agreement and Plan of Merger (the "Agreement and Plan of
Merger"), by and among the Borrower, World Air Holdings, Inc., a Delaware corporation ("Holdings"), World Merger
Subsidiary, Inc., a Delaware corporation and a wholly-owned subsidiary of Holdings ("Merger Sub"), a copy of which has been provided to the
Board, whereby (i) Merger Sub will be merged with and into the Borrower, (ii) each of the issued and outstanding shares of common stock of the Borrower, par value $.001 per share, will
be converted into one share of common stock of Holdings, par value $.001 per share, (iii) the shareholders of the Borrower will become shareholders of Holdings, and (iv) the Borrower
will become a wholly-owned subsidiary of Holdings; 

        WHEREAS, the Transaction constitutes a restructuring under Section 5.19 of the Loan Agreement (the
"Restructuring"); 

        WHEREAS, Section 5.19(d) of the Loan Agreement provides that the Borrower shall be permitted to consummate a Restructuring so long
as the Borrower's credit rating (as determined by Fitch (or any other rating agency reasonably acceptable to the Board and the Agent) in accordance with Section 8.1(b)(iv) of the Loan
Agreement) after giving effect to the consummation of the Restructuring is no lower than it was immediately prior thereto; 

        WHEREAS, the Borrower has requested that the Board waive compliance by the Borrower with the provisions of Section 5.19(d) of the
Loan Agreement; 

        WHEREAS, pursuant to Section 10.1 of the Loan Agreement, so long as the Board Guarantee is in full force and effect and has not
been terminated without a payment having been made thereunder, the Board may, in its sole discretion, consent to the amendment, modification or waiver of certain provisions of the Loan Agreement; and 

        WHEREAS, the Board is willing to grant the waiver requested by the Borrower pursuant to the terms and subject to the conditions set forth
herein. 

        NOW, THEREFORE, for and in consideration of the premises and the mutual covenants
contained herein, and for other good and valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows: 

        Section 1.    Waiver.    Subject to the consummation of the Restructuring in
accordance
with the terms and conditions of the Agreement and Plan of Merger, the Board hereby waives compliance by 

 

the
Borrower with the provisions of Section 5.19(d) of the Loan Agreement in connection with the Restructuring. 

        Section 2.    Representations and Warranties.    To induce the Board to enter
into this
Waiver, the Borrower represents and warrants to the Board that this Waiver has been duly authorized, executed and delivered by the Borrower and constitutes the Borrower's legal, valid and binding
obligation, enforceable in accordance with its terms. 

        Section 3.    No Waiver; Remedies.    Except as expressly set forth herein, this
Waiver
shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Board or the Borrower under the Loan Agreement or any other Loan
Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Loan Agreement, any other Loan Document or the
Board Guarantee, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing contained herein shall be deemed to entitle the Borrower to a consent to,
or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Loan Agreement or any other Loan Document in similar or
different circumstances. This Waiver shall constitute a "Loan Document" for all purposes of the Loan Agreement and the other Loan Documents. 

        Section 4.    Notices.    Any notice, request or other communication herein
required or
permitted to be given shall be in writing and may be personally served or sent by facsimile or United States mail or courier service and shall be deemed to have been given when delivered in person or
by courier service, or upon receipt of facsimile, or five (5) Business Days after depositing it in the United States mail, certified mail, with postage prepaid and properly addressed;  provided,
that notices shall not be effective against an addressee until received by it. For the purposes hereof, the address of each Party is as
follows: 

	The Borrower:	 	 
	

 	
 	

World Airways, Inc.

HLH Building

101 World Drive

Peachtree City, Georgia 30269
	 	 	Attention:	 	Randy J. Martinez
	
With a copy to:	
 	

 
	

 	
 	

Powell Goldstein LLP

One Atlantic Center

Suite 1400

1201 West Peachtree Street, N.W.

Atlanta, Georgia 30309
	 	 	Attention:	 	Thomas R. McNeill, Esq.

Gabriel Dumitrescu, Esq.
	
The Board:	
 	

 
	

 	
 	

Air Transportation Stabilization Board

1120 Vermont Avenue, Suite 970

Washington, D.C. 20005
	 	 	Attention:	 	Executive Director
	 	 	 	 	 

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With a copy to:	
 	

 
	

 	
 	

United States Department of the Treasury

1500 Pennsylvania Avenue, N.W.

Washington, D.C. 20220
	 	 	Attention:	 	Deputy Assistant Secretary

(Government Financial Policy)

        Section 5.    Headings.    The headings set forth in this Waiver are and shall
be
without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 

        Section 6.    Severability.    In case any provision in or obligation under this
Waiver
shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby. 

        Section 7.    Counterparts.    This Waiver may be executed in any number of
counterparts and by the Parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.
Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document. Delivery of an executed
signature page of this Waiver by facsimile transmission shall be as effective as delivery of a manually executed counterpart hereof. 

        Section 8.    Governing Law.    This Waiver and the rights and obligations of
the
Parties hereto shall be governed by, and construed in accordance with, the law of the State of New York; provided, that in the event the Board becomes a
Lender pursuant to the Board Guarantee, the rights and obligations of the Board hereunder shall be governed by, and construed in accordance with, the Federal law of the
United States of America, if and to the extent such Federal law is applicable, and otherwise in accordance with the law of the State of New York. 

        Section 9.    Fees and Expenses.    The Borrower agrees to promptly pay, upon
request,
all costs and expenses (including the reasonable fees and expenses of counsel) reasonably incurred by the Agent, the Collateral Agent, the Lenders, the Board, the Loan Administrator, and the
Supplemental Guarantor in connection with the Restructuring, including, but not limited to, this Waiver. 

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

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        IN WITNESS WHEREOF, the Parties have caused this Waiver to be duly executed as of the date first written above. 

	 	 	WORLD AIRWAYS, INC.
	

 	
 	

By:	
 	

/s/  RANDY J. MARTINEZ      
 Randy J. Martinez

Chief Executive Officer and President
	

 	
 	
AIR TRANSPORTATION STABILIZATION BOARD
	

 	
 	

By:	
 	

/s/  MARK R. DAYTON      
 Mark R. Dayton

Executive Director

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EXHIBIT 10.1

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EXHIBIT 10.2    
    

 
 

JOINDER TO LOAN AGREEMENT    
    

        THIS JOINDER TO LOAN AGREEMENT, dated as of January 10, 2005 (this "Joinder"), is
made and entered into by World Air Holdings, Inc., a Delaware corporation (the "Parent"), to supplement that certain Loan Agreement, dated as of
December 30, 2003 (as the same may be amended, restated or supplemented or otherwise modified from time to time, the "Loan Agreement"), by and
among World Airways, Inc., a Delaware corporation, as Borrower, Govco Incorporated as Primary Tranche A Lender, Citibank, N.A. as Alternate Tranche A Lender, Collateral Agent and Agent,
Citicorp North America, Inc. as Govco Administrative Agent, Citicorp USA, Inc. as Tranche B Lender, Phoenix American Financial Services, Inc. as Loan Administrator and the Air
Transportation Stabilization Board (the "Board"). 

        Capitalized
terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Loan Agreement. 

W I T N E S S E T H:  

        WHEREAS, pursuant to that certain Agreement and Plan of Merger, dated as of the date hereof, by and among the
Borrower, the Parent and World Merger Subsidiary, Inc., a Delaware corporation and wholly-owned subsidiary of the Parent ("Merger Sub"),
(i) the Merger Sub will be merged with and into the Borrower, (ii) each of the issued and outstanding shares of common stock of the Borrower, par value $.001 per share, will be converted
into one share of common stock of the Parent, par value $.001 per share, (iii) the shareholders of the Borrower will become shareholders of the Parent, and (iv) the Borrower will become
a wholly-owned subsidiary of the Parent (the "Merger"); 

        WHEREAS, the Merger constitutes a restructuring under Section 5.19 of the Loan Agreement (the
"Restructuring"); 

        WHEREAS, Section 5.19(e) of the Loan Agreement provides that, in the event of a Restructuring, the Parent shall become an Obligor
under the Loan Agreement and expressly assume all obligations thereunder and under the other Loan Documents by an agreement executed and delivered to the Agent for the benefit of the Lenders, the
Supplemental Guarantor and the Board, in form and substance satisfactory to the Agent and the Board; and 

        WHEREAS, the Parent is entering into this Agreement to comply with Section 5.19(e) of the Loan Agreement. 

        NOW, THEREFORE, for and in consideration of the premises and the mutual covenants
contained herein, and for other good and valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the Parent hereby agrees as follows: 

        Section 1.    Joinder.    By the execution of this Joinder, the Parent hereby
expressly
agrees (a) that the Parent is, and shall be deemed for all purposes to be, an Obligor under the Loan Agreement and the other Loan Documents, and (b) to be bound by the terms, conditions
and obligations set forth therein, with the same force and effect as if the Parent had been an original signatory to the Loan Agreement and the other Loan Documents. 

        Section 2.    Notice.    The address of the Parent set forth below its name on
the
signature page hereto shall be the Parent's address for all purposes of the Loan Agreement as if set forth on Annex A thereto. 

        Section 3.    Headings.    The headings set forth in this Joinder are and shall
be
without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the Parties hereto. 

 

        Section 4.    Severability.    In case any provision in or obligation under this
Joinder shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. 

        Section 5.    Counterparts.    This Joinder may be executed in any number of
counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document. Delivery of an
executed signature page of this Joinder by facsimile transmission shall be as effective as delivery of a manually executed counterpart hereof. 

        Section 6.    Governing Law.    This Joinder and the rights and obligations of the
parties
hereto shall be governed by, and construed in accordance with, the law of the State of New York; provided, that in the event the Board becomes a Lender
pursuant to the Board Guarantee, the rights and obligations of the Board hereunder shall be governed by, and construed in accordance with, the Federal law of the United States of America, if and to
the extent such Federal law is applicable, and otherwise in accordance with the law of the State of New York. 

        Section 7.    Fees and Expenses.    The Parent agrees to promptly pay, or cause
the
Borrower to pay, upon request, all costs and expenses (including the reasonable fees and expenses of counsel) reasonably incurred by the Agent, the Collateral Agent, the Lenders, the Board, the Loan
Administrator, and the Supplemental Guarantor in connection with the Restructuring, including, but not limited to, this Joinder. 

        Section 8.    Further Assurances.    The Parent agrees to perform any further
acts and
execute and deliver any additional documents and instruments that may be necessary or reasonably requested by the Agent or the Board to carry out the provisions of this Joinder. 

        Section 9.    Acknowledgment by the Board.    The Board acknowledges and agrees
that
this Joinder and the Restructuring referenced herein shall not alter, modify or amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Board
Guarantee, all of which are ratified and affirmed in all respects and shall continue in full force and effect. 

2

 

        IN WITNESS WHEREOF, the Parent has executed this Joinder as of the date first above written. 

	 	 	 	 	 	WORLD AIR HOLDINGS, INC.
	

 	

 	
 	

 	
 	

By:	
 	

/s/  RANDY J. MARTINEZ      
 Randy J. Martinez

Chief Executive Officer and President
	

 	

 	
 	

 	
 	

Address and Contact Information:
	

 	

 	
 	

 	
 	

World Air Holdings, Inc.

HLH Building

101 World Drive

Peachtree City, Georgia 30269

Attention: Randy J. Martinez

Telephone: (770) 632-8260

Facsimile: (770) 632-8090
	

 	

 	
 	

 	
 	

With a copy to:
	

 	

 	
 	

 	
 	

Powell Goldstein LLP

One Atlantic Center

Suite 1400

1201 West Peachtree Street, N.W.

Atlanta, Georgia 30309

Attention: Thomas R. McNeill, Esq.
	
ACKNOWLEDGED:	
 	

 	
 	

 
	

CITIBANK, N.A.
 as Agent	
 	

 	
 	

 
	

By:	

/s/  BARBARA KOBELT      
 Name: Barbara Kobelt

Title: Vice President	
 	

 	
 	

 
	
AIR TRANSPORTATION STABILIZATION BOARD	
 	

 	
 	

 
	

By:	

/s/  MARK R. DAYTON      
 Name: Mark R. Dayton

Title: Executive Director	
 	

 	
 	

 

3

QuickLinks

EXHIBIT 10.2

JOINDER TO LOAN AGREEMENT

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