Document:

exv10w8

 

Exhibit 10.8

AMENDED AND RESTATED ALLIANCE AGREEMENT

     This Amended and Restated Alliance Agreement (the “Alliance Agreement” and together with the
Exhibits hereto, the “Agreement”) is made this 30th day of December, 1999, by and between
CONTINENTAL AIRLINES, INC. (“Continental”), a Delaware corporation, with its principal office at
1600 Smith Street, Houston, Texas, U.S.A. 77002, and GULFSTREAM INTERNATIONAL AIRLINES, INC.
(“Gulfstream”), a Florida corporation, with its principal office at 1815 Griffith Road, Dania,
Florida 33004.

Recitals

     Continental and Gulfstream are each certificated air carriers providing air transportation
services with respect to both passengers and cargo in their respective areas of operation.

     Continental and Gulfstream are each party to an Alliance Agreement dated January 9, 1997 (the
“Original Alliance Agreement”).

     Contemporaneous with the date hereof, Continental has made a substantial equity investment in
Gulfstream (the “Equity Investment”).

     Continental and Gulfstream desire to increase the flow of air passenger traffic on aircraft
operated by both carriers and increase the quantity and quality of air service available to the
traveling public by entering into a cooperative relationship that will include the code sharing of
flights, through check-in, special prorate arrangements for passengers, frequent flyer program
participation, joint sales and marketing programs and other mutually agreed to agreements.

     In connection with the Equity Investment, Continental and Gulfstream desire to amend and
restate the Original Alliance Agreement as provided for in this Alliance Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual promises herein contained,
Continental and Gulfstream agree as follows:

     1. Shared Code Segments. To the extent permitted by applicable laws, Continental will
place its code on flights operated by Gulfstream between the locations indicated on Exhibit A
hereto (the “Shared Code Segments”). To the extent permitted by applicable law, the carriers will
explore the possibility of code sharing on additional mutually agreed to segments. Gulfstream may
utilize its designator code for local traffic on the Shared Code Segments, but shall have no right
to place its designator code on flights operated by Continental. Except as expressly set forth
herein, no carrier shall have an obligation to extend Shared Code Segments to other routes or to
maintain operations of its aircraft on any routes and no such obligation can be created by any oral
statements or representations or course of dealing by a carrier, but only by an express written
agreement. Continental will place its “CO*” designator code on the flights operated as Shared Code
Segments promptly upon the reasonable determination by Continental that the product offered by
Gulfstream on such flight is substantially comparable to that offered by Continental. The carriers
shall meet together at least every six months that this Agreement is

 

 

in effect to discuss the appropriateness of expanding or contracting the list of city pairs on
Exhibit A.

     2. Schedules. The carriers will cooperate with each other to develop coordinated
schedules to ensure maximum connecting opportunities for both carriers. Once a schedule has been
established, a carrier may only change the schedule for its aircraft upon 60 days’ prior written
notice to the other carrier (or notice as far in advance as is practicable, if 60 days is not
practicable). If a schedule change by either carrier will have a detrimental effect on the
connecting opportunities relating to Shared Code Segments, the carrier making the change will
discuss the change with the other carrier prior to implementing the change.

     3. Pricing and Capacity Control of Shared Code Segments.

     (a) Pricing. Each carrier will file the tariffs and fares for flights operated
on Shared Code Segments that utilize its designator code (CO or CO* in the case of
Continental and 3M in the case of Gulfstream). Continental will establish and set, to the
exclusion of Gulfstream, the fares for flights operated solely by it and flights between
locations served by connecting flight operations whereby at least one segment is operated by
Gulfstream as a Shared Code Segment and at least one segment is operated by Continental
(“Through Flight”). Gulfstream will establish and set, to the exclusion of Continental, the
fares for flights operated solely by it. To the extent that no fare has been filed for a
Through Flight, the fare applicable to such flight shall equal the sum of the local fares.

     (b) Capacity Control. Except to the extent necessary to prevent unauthorized
over booking. Gulfstream will make available for sale as a Shared Code Segment all of the
available seats on Shared Code Segments operated by it; provided, however, that as long as
Gulfstream is a party to its current agreement with United Airlines, Inc.(“United”), whereby
United’s two letter designator code is placed on aircraft operated by Gulfstream, Gulfstream
may withhold from inventory available to Continental up to four seats on one of the daily
flights operated by Gulfstream in each of the following city pairs: MIA-MCO, MIA-TPA,
MIA-EYW, MIA-NAS, TPA-EYW, PBI-TPA, MCO-EYW, FLL-NAS, SJU-STT, SJU-STX, SJU-SXM AND SJU-SKB.
Subject to the provisions of this Section 3(b), Gulfstream will use its reasonable efforts
to make inventory available to satisfy the demand for passenger traffic connecting from
Continental flights.

     4. Revenue Allocation. The revenue from Through Flights shall be allocated in
accordance with the Revenue Settlement Agreement in effect between the carriers. The revenue to be
allocated will be based on the ticketed fare, less any discount resulting from acceptance of
mutually agreed to coupons or certificates. Excess baggage charges and other similar charges will
be prorated on a segment basis.

     5. Revenue Settlement.

     (a) Revenue Advances to Gulfstream

2

 

     (i) Timing. On a weekly basis, Continental will advance funds to
Gulfstream for estimated amounts of revenue (the “Advance Payment”). The Advance
Payment will be sent to Gulfstream every Thursday (exceptions being made for
holidays) via wire transfer, and will cover the seven days ending on and including
the previous Sunday.

     (ii) Calculation. The Advance Payment will be calculated accordingly to
the following formula:

[*]

equals: Advance Payment

     Where,

     [*]

     (iii) Costs for reporting requirements. Gulfstream shall be responsible
for the cost of maintaining and, as necessary, upgrading FSIR in order to comply
with the reporting requirements set forth above.

     (iv) Adjustments to Advance Payment methodology. The carriers will
review the methodology for determining the amount of the advance payment upon the
request of either carrier, and to the extent that the amount of the advance needs to
be adjusted prospectively to more accurate reflect the risks of each carrier, the
methodology will be adjusted accordingly.

     (b) Monthly Settlement. At the end of each month, the Carriers will submit
invoices to the other via the Airline Clearing House (ACH) as follows:

     (i) Continental will bill Gulfstream the sum of all Advance Payments made to
Gulfstream with respect to such month (including an allocation of any weekly advance
that covers the end of one month and the beginning of the next month).

     (ii) Continental will bill Gulfstream, as and when reasonably quantified, all
credit card discount and processing fees and charges, credit card chargebacks, CRS
booking fees, reservations and sales accounting charges and other deductions
permitted in accordance with this Agreement with respect to revenue on CO* Flights.

     (iii) Gulfstream will bill Continental the actual revenue it earned with
respect to tickets on Continental ticket stock as determined in accordance with
Section 4 hereto, not including taxes, passenger facility charges, commissions and
other appropriate deductions from the fare, as evidenced by Continental coupons
lifted by Gulfstream on CO* Flights during the month.

The net amount due to Continental or Gulfstream will be settled through normal ACH
procedures. Subject to Gulfstream’s obligation to reimburse Continental for

3

 

such payments, Continental will remit to the appropriate authority all taxes,
passenger facility charges and other fees with respect to coupons for CO* flights
issued on Continental ticket stock, and will remit, as appropriate (or allow the
offset of), all commissions with respect to such coupons.

     (c) Offset/Adjustment to Advance Payments. Continental reserves the right to
adjust and/or offset the amount of any Advance Payments to be made to Gulfstream pursuant to
this Section 5 based on amounts due and payable by Gulfstream to Continental pursuant to
this Agreement or with respect to other alliance related obligations.

     (d) Consent to Sampling. Gulfstream hereby consents to the use of sampling
techniques by Continental to determine settlement amounts in accordance with Airline
Clearing House Manual Section D. If Gulfstream is not satisfied with the results of the
sampling results, Gulfstream may request Continental to review the sampling techniques.

     6. Term. The term of this Agreement shall commence on the date first written above and
shall, unless earlier terminated as provided elsewhere in this Agreement, continue thereafter until
either carrier gives the other carrier at least three years’ written notice of termination;
provided, however, that such notice may not be given until on or after the date that is ten (10)
years after the date hereof.

     7. Sales and Marketing Programs. To the extent permitted by law, the parties will work
to develop and implement mutually agreeable joint sales and marketing programs to help promote the
alliance relationship and increase revenues from same. Details of joint program development,
charges for inclusion therein and the individual components thereof will be negotiated and mutually
agreed between the carriers. The parties will conduct semiannual joint sales and marketing meetings
to discuss possible sales and marketing programs and strategies.

     8. Other Agreements. In furtherance of the alliance relationship, the carriers have
entered or will enter into agreements concerning the following subject matters:

	 	 	 	Subject Matter
	 
	 	A.	 	Employee Interline
	 
	 	B.	 	Frequent Flyer Program Participation
	 
	 	C.	 	Ground Handling
	 
	 	D.	 	Fuel

     9. [Deleted by Amendment dated 12/26/02.]

     10. Reservations and Ticket Handling. Continental shall operate and maintain a
reservations system to permit potential passengers to book reservations on Shared Code Segments.
Gulfstream shall be permitted to utilize Continental’s ticket stock and other travel documents,
provided that Gulfstream complies with the procedures set forth in Exhibit B hereto. As
compensation for such reservation services and the sales accounting function provided in connection
with Gulfstream’s utilization of Continental’s ticket stock, Gulfstream shall pay to Continental an
amount equal to $[*] per coupon (or electronic coupon equivalent) utilized on a flight operating as
a Shared Code Segment, with such amount to be modified from time to time,

4

 

upon satisfactory evidence by Continental, so that such amount is not less than Continental’s fully
allocated cost of providing such services.

     12. Terms and Conditions. Incorporated by reference herein and made a part hereof are
the “General Terms and Conditions” set forth in Exhibit C hereto.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

5

 

     IN WITNESS WHEREOF, the parties hereto, being duly authorized, have caused this Agreement to
be executed as of the date written below.

	 	 	 	 	 
	CONTINENTAL AIRLINES, INC.

 	 
	By:  	/s/ Jeff Misner
 	 	 	 
	 	Name:  	Jeff Misner 	 	 
	 	Title:  	Vice President 	 	 

	 	 	 	 	 
	GULFSTREAM INTERNATIONAL AIRLINES, INC.

 	 	 
	By:  	/s/ Thomas L. Cooper
 	 	 
	 	Name:  	Thomas L. Cooper 	 	 
	 	Title:  	President and Chief Executive Officer 	 	 
	 

Signature Page to Amended and Restated Alliance Agreement

 

 

Exhibit A

To

Amended and Restated Alliance Agreement

Between

Continental and Gulfstream

Shared Code Segments

CO* FLIGHTS

CO* Flights shall be any flight operated by Gulfstream as of the date of this Agreement and any
additional flights operated by Gulfstream selected by Continental.

i

 

Exhibit B

To

Amended and Restated Alliance Agreement

Between

Continental and Gulfstream

Ticket Handling.

     1. Passenger Ticket Stock and Accounting Procedures. Continental will provide
Gulfstream with Continental passenger ticket stock in accordance with the following procedures:

     A. Continental will supply Gulfstream with adequate supplies of all necessary passenger
ticket forms, bag tags, boarding passes, validator plates and other documents and materials
necessary to enable Gulfstream to operate in a manner consistent with Continental
procedures, upon request to the office designated by Continental from time to time. A
receipt for all ticket forms delivered to Gulfstream shall be signed by an appropriate
representative of Gulfstream, and Gulfstream shall comply with Continental’s procedures with
respect to the control of, safeguarding of and accounting for ticket stock and validator
plates. All tickets and other documents and materials supplied by Continental for use in
connection with this Agreement shall be and remain the property of Continental and shall be
held in trust for Continental by Gulfstream and issued or otherwise utilized only as
provided in this Agreement.

     B. Gulfstream shall be responsible for the safe and secure custody and care of all
tickets and other documents and materials furnished by Continental. The tickets and other
documents of Continental shall be secured in a manner satisfactory to Continental and
consistent with any applicable IATA standards and specifications. Such tickets and documents
and all records relating to them and to the sale of transportation on Continental shall at
all times be made available for inspection by Continental or its designated representative.

     C. All tickets shall be issued by Gulfstream in accordance with the currently effective
tariffs and contract of carriage applicable to the transportation being purchased and
applicable trade manuals, all in accordance with appropriate instructions which may be
issued from time to time by Continental.

     D. All tickets shall be issued by Gulfstream in numerical sequence and all must be
accounted for at each reporting period. All auditor’s coupons for tickets issued by
Gulfstream and all coupons of voided tickets shall be sent to the office or offices
designated by Continental from time to time on the work day following issuance.

     E. All checks accepted for the sale of tickets on Continental ticket stock shall be
payable to Continental and acceptance of checks shall conform to Continental’s acceptance
procedures. Any losses resulting from returned checks where Gulfstream has failed to follow
Continental’s acceptance procedures, will be charged to Gulfstream after Continental
exhausts reasonable efforts to collect.

i

 

     F. All tickets issued for payment other than cash or check shall be supported by such
documents as shall be specified by Continental.

     G. Gulfstream shall assume full liability for and agrees to defend, indemnify and hold
Continental harmless from and against any and all claims, demands, liability, expenses,
losses, costs or damages whatsoever in any manner arising out of or attributed to
Gulfstream’s possession, issuance, loss, misapplication, theft, or forgery of tickets, other
travel documents, or supplies furnished by Continental to Gulfstream including but not
limited to lost ticket forms, bag tags, boarding passes or other documents and errors in
ticket issuance. In the event Gulfstream loses or has stolen any ticket, fails to return
tickets or other documents to Continental upon demand, fails to remit pursuant to this
Agreement the monies to which Continental is entitled from the sale of any such ticket or
document, or fails to account properly for any such tickets or document, Gulfstream shall be
liable to Continental for the agreed value of any such ticket or document, which is agreed
to be the actual damages or loss sustained by Continental from usage of any such ticket or
document, as measured by the then current, non-discounted retail price of the transportation
or other service obtained with the ticket or document or, if such value cannot be
determined, $2,000.00 U.S. per ticket.

     H. Gulfstream may accept all credit cards honored by Continental and is appointed
Continental’s agent for such purpose, provided:

     (i) Gulfstream observes the floor limits for each credit card set by the issuer
of the credit card (“Card Issuer”) as amended by the Card Issuer from time to time;

     (ii) Gulfstream accepts each credit card within the terms of the contracts
between Continental and Card Issuer;

     (iii) Gulfstream complies with Part 374 of DOT’s Economic Regulations;

     (iv) Gulfstream does not accept blacklisted cards;

     (v) Gulfstream shall reimburse Continental for any losses incurred by
Continental as a result of Gulfstream’s failure to observe the terms of this section
or of the contracts between Continental and the Card Issuer;

     (vi) Gulfstream complies with all of Continental’s procedures; and

     (vii) Gulfstream shall reimburse Continental for all charge backs, returns and
other direct charges attributable to or arising from Gulfstream’s acceptance of
credit cards, unless either (i) Continental has realized an offsetting credit
(including through the return and cancellation of a previously issued ticket) or
(ii) such charge back, return or other charge resulted from the gross negligence,
recklessness, or willful misconduct of Continental.

ii

 

     I. Gulfstream shall reimburse Continental for any credit card fees, commissions,
discounts, etc., paid by Continental or deducted from payments made to Continental with
respect to sales of tickets for travel on Gulfstream, and for any bad debt expense realized
by Continental with respect to tickets sold by Gulfstream.

     J. Gulfstream shall prepare and furnish to Continental all written reports, accounts,
and documentation with regard to ticket handling that Continental may require daily or at
such lesser frequency as Continental may prescribe, at its sole discretion, from time to
time during the life of this Agreement. Gulfstream will comply with all reasonable
procedures specified by Continental with regard to ticket handling.

Within two business days after the termination of this Agreement for any reason, Gulfstream
will return to Continental all passenger ticket forms, bag tags, boarding passes and other
documents provided to Gulfstream by Continental pursuant to this Agreement.

     2. Deposits. Gulfstream shall deposit all funds, both cash and checks, realized from
the sale of tickets on Continental ticket stock by it in Continental accounts maintained at
depositories from time to time designated by Continental on or before the first banking day
following receipt of such funds.

     3. Ticket Acceptance. For the term of this Agreement, Continental hereby authorizes
Gulfstream to accept flight coupons written for CO* Flights in accordance with any applicable
restrictions. Gulfstream shall not endorse or refund any such coupons without Continental’s written
consent, except in accordance with Continental’s contract of carriage.

iii

 

Exhibit C

To

Alliance Agreement

Between

Continental and Gulfstream

General Terms and Conditions

     1. Code Sharing Licenses.

     (a) CO* License.

     (i) Grant of License. Subject to the terms and conditions of this
Agreement, Continental hereby grants to Gulfstream a nonexclusive, nontransferable,
revocable license to use the CO* designator code on all of its flights operated as a
Shared Code Segments. (Gulfstream flights flown using the CO* code are hereinafter
referred to as “CO* Flights”).

     (ii) Control of CO* Flights. Gulfstream shall have sole responsibility for and
control over, and Continental shall have no responsibility for, control over or
obligations or duties with respect to, each and every aspect of Gulfstream’s
operations including, without limitation, scheduling (except as provided in Sections
2 and 11 of this Exhibit C), pricing (except as provided in Section 3 of the
Alliance Agreement), planning of flight itineraries and routings, reservations,
reservations control/yield management, dispatch, fueling, weight and balance, flight
release, maintenance, and flight operations and compliance with applicable rules and
regulations.

     (b) 3M* License. [Not Applicable]

     2. Confidential Information. Neither Gulfstream nor Continental shall disclose to the
other carrier or be required to disclose by the other carrier any information relating to its
scheduling (except as provided in Sections 2 and 11 of this Exhibit C), pricing, inventory control
or flight profitability. Neither Gulfstream nor Continental shall disclose the terms of this
Agreement or any proprietary information with respect to the other obtained as a result of this
Agreement, either during the term hereof or thereafter except as may be required by law or by any
order of a court or administrative agency, and then on ten days’ notice to the other. The parties
hereto recognize that, in the course of the performance of each of the provisions hereof, each
carrier may be given and may have access to confidential and proprietary information of the other
carrier, including proposed schedule and fare changes, statistical data regarding loads and fares,
sales and promotional programs and other operating and competitive information (“Confidential
Information”). Each carrier shall preserve, and shall ensure that each of its officers, agents,
consultants and employees who receive Confidential Information preserve, the confidentiality of the
other carrier’s Confidential Information.

     3. Quality of Service. Each carrier shall perform its service with respect to its
flights operated under the designator code of the other carrier in a timely, expert and quality
manner. Without limitation, each carrier shall maintain its aircraft in an airworthy, clean,
attractive and

i

 

comfortable condition and strive to maintain a completion factor of at least 98% (without
considering delays caused by air traffic control or weather). Each carrier agrees that, in
conducting flight operations under the designator of the other carrier, it will employ prudent
safety and loss prevention policies in accordance with applicable laws, rules and regulations.

     4. Audit.

     (a) Continental Audit. Continental shall have the right, at its own cost, to
inspect, review, and observe Gulfstream’s operations of CO* Flights, and/or to conduct a
full safety and/or service audit of Gulfstream’s operations, manuals and procedures
reasonably related to CO* Flights, at such intervals as Continental shall reasonably
request. In the exercise of such right, Continental does not undertake any responsibility
for the performance of Gulfstream’s operations. Continental shall coordinate its safety and
service audits with Gulfstream so as to avoid disruptions of Gulfstream’s operations. Any
safety audit may include, without limitation, maintenance and operation procedures, crew
planning, reservations, passenger and baggage handling, customer service, personnel records,
spare parts, inventory records, training records and manuals, flight, flight training and
operational personnel records. This paragraph shall not entitle Continental access to
Gulfstream’s records, documents or systems relating to its pricing, inventory control or
flight profitability.

     (b) Gulfstream Audit. [Not Applicable]

     5. Public Relations. In the event of any irregularity in Shared Code Segments’
operations, including, without limitation, any event causing damage to persons or property, the
operating carrier shall identify itself as being operated independently of the carrier whose code
is being used, and as being solely responsible for its operations. Either carrier may state that it
holds a code sharing license from the other carrier and that it obtains certain services from the
other carrier if third parties inquire as to such relationship.

     6. Irregularities in Operations. Gulfstream shall promptly notify Continental of all
irregularities involving a CO* Flight which result in any damage to persons or property as soon as
such information is available and shall furnish to Continental as much detail as practicable. For
purposes of this Section, notification shall be made as follows:

			
	     To Continental:	 	Continental Airlines System Operations Control Center (SOCC),
 1600 Smith, Houston, Texas 77002,

Attention: Operations Director, 
phone no. (713) 324-7209, 
fax no. (713) 324-2138, 
SITA FCFDDCO.

     7. Reporting Obligation.

     (a) Chances of Service. Each carrier shall give the other carrier 60 days
advance notice (or notice as far in advance as possible if 60 days is impracticable) of any
intended (i) changes to its operating specifications, or (ii) material changes to the manner
of conducting its business or the nature of its product. In the event any such change
materially affects the value or risk to the other carrier of this Code Sharing Agreement in

ii

 

the other carrier’s reasonable judgment, the other carrier shall be entitled to
terminate this agreement if the change is implemented.

     (b) Correspondence from Government Authorities.

     (i) Gulfstream shall immediately provide Continental copies of any
correspondence received from any government authority which, with respect to CO*
Flights, references (i) any alleged noncompliance with rules or regulations
affecting air transportation, or (ii) any investigation of Gulfstream performed or
proposed by any government authority, including, without limitation, any
communication issued by a government authority concerning the airworthiness of
Gulfstream’s aircraft, the compliance of Gulfstream’s personnel with required
operational or training procedures or any other matter relating to the safe
operation of Gulfstream aircraft.

     (ii) Continental shall immediately provide Gulfstream copies of any
correspondence received from any government authority which, with respect to CO*
Flights, references (i) any alleged noncompliance with rules or regulations
affecting air transportation, or (ii) any investigation of Continental performed or
proposed by any government authority, including, without limitation, any
communication issued by a government authority concerning the airworthiness of
Continental’s aircraft, the compliance of Continental’s personnel with required
operational or training procedures or any other matter relating to the safe
operation of Continental aircraft.

     (c) Notice of Complaints. Gulfstream shall monthly furnish Continental a
summary of complaints, notices of violation, requests to cease activity or similar
correspondence which reasonably relate to CO* Flights and which are received by Gulfstream
from passengers, any government authority or other parties. Continental shall monthly
furnish Gulfstream a summary of complaints, notices of violation, request to cease activity
or similar correspondence which reasonably relate to CO* Flights and which are received by
Continental from passengers, any government authority or other parties. Each carrier shall
comply with the other carrier’s reasonable requests for actual copies of any such documents.

     (d) Operations. Continental and Gulfstream shall provide each other with
monthly reports containing the following data for Shared Code Segments operated by it:

     (i) the total number of scheduled, actual and canceled departures for the
month, by flight and city pair;

     (ii) the load factor and the total number of revenue passengers and
(separately) non-revenue passengers boarded, by flight number and city pair and
separated by passengers connecting on Through Flights and passengers carried
locally; and

     (iii) completion and on-time performance data, by system and market.

iii

 

     8. Flight Display.

     (a) All Shared Code Segments will be included in the schedule, availability and fare
displays of all computerized reservations systems in which Continental and Gulfstream
participate, the Official Airline Guide (to the extent agreed upon) and Continental’s and
Gulfstream’s internal reservation systems, under the shared code as well as the operator’s
own code, to the extent possible. Continental and Gulfstream will take the appropriate
measures necessary to ensure the display of the schedules of all Shared Code Segments in
accordance with the preceding sentence.

     (b) Continental and Gulfstream will disclose and identify the Shared Code Segments to
the public as actually being a flight of and operated by the operating carrier in at least
the following ways:

     (i) a symbol will be used in timetables and computer reservation system
indicating that Shared Code Segments are actually operated by the other carrier;

     (ii) to the extent reasonable, messages on airport flight information displays
will identify the operator of flights shown as Shared Code Segments;

     (iii) Continental and Gulfstream advertising concerning Shared Code Segments
and Continental and Gulfstream reservationists will disclose the operator of each
flight; and

     (iv) in any other manner prescribed by law.

     9. Terms and Conditions of Carriage and Claims Procedures.

     (a) In all cases the contract of carriage between a passenger and a carrier will be
that of the carrier whose code is designated on the ticket. Continental and Gulfstream shall
each cooperate with the other carrier in the exchange of information necessary to conform
each carrier’s contract of carriage to reflect service offered by the other carrier. Nothing
in this subsection shall require either carrier to adopt the practices or implement the
services of the other carrier.

     (b) The carriers will use existing IATA procedures when handling and settling claims
made by customers in connection with Shared Code Segments.

     10. Irregularity Handling.

     (a) In the event of flight delays, cancellations or other schedule irregularities that
affect Shared Code Segments, the operating carrier will inform the carrier whose designator
is also used of all pertinent information concerning an irregularity for customer
information purposes.

     (b) The parties agree that they will cooperate in all available ways to accommodate
passengers experiencing flight irregularities (including, but not limited to, schedule
changes, flight cancellations, delayed flights, flight interruptions and delayed,

iv

 

damaged, pilfered or lost baggage) and that neither will forbear from providing such
assistance because the other may have been responsible for the flight irregularity. In the
event of a flight irregularity, the carrier causing or experiencing the irregularity shall
bear all related costs (including costs of the other carrier) associated with accommodating
the passengers who have been affected by such flight irregularity. The carriers will review
existing procedures for handling flight irregularities and accommodating interline
passengers with respect thereto and handling over sales situations to determine their
adequacy for the purposes of this Agreement and will make such mutually agreed to
adjustments in existing procedures as they find necessary or appropriate to provide
coordinated irregularity handling. In the absence of such agreement, the written policies
and procedures of the carrier whose designator code is indicated on the ticket will be
followed.

     (c) The carriers will allocate a value to travel certificates used to accommodate
passengers inconvenienced as a result of flight irregularities. Such allocation will take
into account breakage and the cost of administering the travel certificate program.

     11. Airport Operational Assistance. Each carrier intends to develop a seamless
transfer for passengers connecting from a Continental to a Gulfstream flight segment (or vice
versa). In connection therewith, Continental and Gulfstream will cooperate to coordinate and
maintain their schedules to minimize the waiting time and to maximize convenience of passengers who
are connecting from a Continental to an Gulfstream flight segment (or vice versa). Each carrier
will provide the other with the airport operational assistance that is required to assure schedule
compatibility for Through Flights where applicable.

     12. Tariff Filing. Each carrier will file the tariffs and fares for flights operated
on Shared Code Segments that utilize its designator code (CO or CO* in the case of Continental and
3M in the case of Gulfstream).

     13. Transportation Taxes. Each carrier shall be responsible for collecting and paying
any taxes or fees assessed by any governmental authority or airport on the transportation of
passengers or property for transportation utilizing its travel documents. If a carrier other than
the ticketing carrier is responsible for paying such taxes or fees, the carriers will develop a
system whereby the carrier that collects the tax or fee will remit the same to the carrier that is
obligated to pay the tax or fee or arrange for the carrier that collects the tax or fee to pay the
same on behalf of the carrier responsible for paying the same.

     14. Booking Fees. The carrier operating over any segment of a Shared Code Segment will
be responsible for any booking fee relating to such segment charges by the vendor of a computer
reservation system used to create a booking on that flight. If the booking fee relating to such
segment is billed to the carrier whose designator code is also used for that flight, the operating
carrier will reimburse the carrier whose designator code is also used for that flight.

     15. Flight Coupon Handling.

     (a) Continental Authorization. Continental hereby authorizes Gulfstream to
handle Continental flight coupons specifying Continental through flight numbers under

v

 

this Agreement in the same way as if these coupons were specifying Gulfstream flights.
Continental shall confirm this authorization immediately to third parties if Gulfstream so
requires.

     (b) Gulfstream Authorization. Gulfstream hereby authorizes Continental to
handle Gulfstream flight coupons specifying Gulfstream through flight numbers under this
Agreement in the same way as if these coupons were specifying Continental flights.
Gulfstream shall confirm this authorization immediately to third parties if Continental so
requires.

     16. Compliance with Laws and Regulations. Continental and Gulfstream each represent,
warrant, and agree that performance of its respective obligations under this Agreement shall be
conducted and all of its personnel shall at all times meet, be in full compliance with and have all
required licenses under any and all applicable laws, statutes, orders, rules and regulations of any
country or territory with jurisdiction over the Shared Code Segments, including without limitation,
those laws, statutes, orders, rules and regulations promulgated by the United States of America.
Each carrier shall be responsible, at its own cost, for obtaining any regulatory authorizations
necessary to operate its flights or utilize its designator code on the Shared Code Segments;
provided that, the other carrier shall render such assistance as is reasonably requested in order
to obtain such regulatory authorizations.

     17. Independent Parties.

     (a) Independent Contractors. It is expressly recognized and agreed that each
carrier, in its performance and otherwise under this Agreement, is and shall be engaged and
acting as an independent contractor and in its own independent and separate business; that
each carrier shall retain complete and exclusive control over its staff and operations and
the conduct of its business; and that each carrier shall bear and pay all expenses, costs,
risks and responsibilities incurred by it in connection with its obligations under this
Agreement. Neither Continental nor Gulfstream nor any officer, employee, representative, or
agent of Continental or Gulfstream shall in any manner, directly or indirectly, expressly or
by implication, be deemed to be, or make any representation or take any action which may
give rise to the existence of, any employment, agent, partnership, of other like
relationship as between Continental and Gulfstream but each carrier’s relationship as
respects the other carrier in connection with this Agreement is and shall remain that of an
independent contractor.

     (b) Status of Employees. The employees, agents and/or independent contractors
of Gulfstream shall be employees, agents, and independent contractors of Gulfstream for all
purposes, and under no circumstances shall be deemed to be employees, agents or independent
contractors of Continental. The employees, agents and independent contractors of Continental
shall be employees, agents and independent contractors of Continental for all purposes, and
under no circumstances shall be deemed to be employees, agents or independent contractors of
Gulfstream. In its performance under this Agreement, each carrier shall act as an
independent contractor and not as an agent for the other. Continental shall have no
supervisory power or control over any employees, agents or independent contractors employed
by Gulfstream, and Gulfstream

vi

 

shall have no supervisory power or control over any employees, agents and independent
contractors employed by Continental.

     (c) Liability For Employee Costs. Each carrier, with respect to its own
employees (hired directly or through a third party), accepts full and exclusive liability
for the payment of worker’s compensation and/or employer’s liability (including insurance
premiums where required by law) and for the payment of all taxes, contributions or other
payments for unemployment compensation, vacations, or old age benefits, pensions and all
other benefits now or hereafter imposed upon employers with respect to its employees by any
government or agency thereof or any other party (whether measured by the wages, salaries,
compensation or other remuneration paid to such employees or otherwise) and each carrier
further agrees to make such payments and to make and file all reports and returns, and to do
everything necessary to comply with the laws imposing such taxes, contributions or other
payments.

     18. Indemnification and Insurance.

     (a) Indemnification.

     (i) Gulfstream hereby assumes liability for, and shall indemnify, defend,
protect, save and hold harmless Continental, its officers, agents, and employees
from and against any and all liabilities, claims, judgements, damages, and losses,
including all costs, fees, and expenses incidental thereto, of every type and nature
whatsoever, including without limitation those involving (i) death of or injury to
any person including, but not limited to, Gulfstream’s officers, employees and
agents, (ii) loss of, damage to, or destruction of any property whatsoever,
including any loss of use thereof, and (iii) trademark, service mark or trade name
infringement, provided that such liabilities, claims, judgements, damages or losses
are caused by or arise out of (or are alleged to be caused by or arise out of) any
alleged acts or omissions of Gulfstream or its officers, employees, or agents which
are in any way related to the services contemplated by this Agreement. Continental
shall give Gulfstream prompt notice of any claim made or suit instituted against
Continental which, if successful, would result in indemnification of Continental
hereunder, and Continental shall have the right to compromise or participate in the
defense of same to the extent of its own interest.

     (ii) Continental hereby assumes liability for, and shall indemnify, defend,
protect, save and hold harmless Gulfstream, its officers, agents, and employees from
and against any and all liabilities, claims, judgements, damages, and losses,
including all costs, fees, and expenses incidental thereto, of every type and nature
whatsoever, including without limitation those involving (i) death of or injury to
any person including, but not limited to, Continental’s officers, employees and
agents, (ii) loss of, damage to, or destruction of any property whatsoever,
including any loss of use thereof, and (iii) trademark, service mark or trade name
infringement, provided that such liabilities, claims, judgements, damages or losses
are caused by or arise out of (or are alleged to be caused by or arise out of) any
alleged acts or omissions of Continental or its officers, employees, or agents which
are in any way related to the services contemplated

vii

 

by this Agreement. Gulfstream shall give Continental prompt notice of any claim
made or suit instituted against Gulfstream which, if successful, would result in
indemnification hereunder, and Gulfstream shall have the right to compromise or
participate in the defense of same to the extent of its own interest.

     (b) Insurance Coverage.

     (i) Each carrier shall, at all times during the term of this Agreement,
maintain in full force and effect policies of insurance as follows:

     A. Comprehensive Airline Liability Insurance, including Aircraft Third
Party, Passenger, including Passengers’ Baggage and Personal Effects, Cargo
and Mail Legal Liability for a Combined Single Limit (CSL) of not less than
$200 million per occurrence per Aircraft. In respect of Personal Injury (per
clause AVN 60 or its equivalent) the maximum limit is $25 million per
offense and in the aggregate.

     B. Workmen’s Compensation -

	 	 	 
	Insurance	 	Per Accident
	 	 	 
	(Company Employee)
	 	Statutory
	 	 	 

     C. Employers’ Liability ($1,000,000 combined single limit)

     (ii) Subject to Section 1 8(b)(i) above, the operating carrier shall cause the
policies of insurance described in such Section I 8(b)(i) with respect to flights
operated as Shared Code Segments by it to be duly and properly endorsed by that
carrier’s insurance underwriters as follows:

     A. to provide that the underwriters shall waive any and all subrogation
rights against the other carrier, its directors, officers, agents, employees
and other authorized representatives, except for gross negligence or willful
misconduct; and

     B. to provide that the other carrier, its directors, officers, agents,
employees and other authorized representatives shall be endorsed as
additional insured parties thereunder, except for gross negligence or
willful misconduct of any of the additional insureds; and

     C. to provide that said insurance shall be primary to and without right
of contribution from any other insurance which may be available to the
additional insureds; and

     D. to include a breach of warranty provision in favor of the additional
insureds; and

viii

 

     E. to accept and insure the operating carrier’s hold harmless and
indemnity undertaking under Section 18(a) hereof, but only to the extent of
the coverage afforded by the policy or policies; and

     F. to provide that said policy or policies or any part or parts thereof
shall not be canceled, terminated or materially altered, changed or amended
until 30 days (but seven days or such lesser period as may be available in
respect of war and allied periods) after written notice thereof shall have
been sent to the other carrier.

     (iii) Simultaneously with the commencement of this Agreement, and from time to
time thereafter upon request by either party, the other party shall furnish to the
requesting party evidence reasonably satisfactory to the requesting party of the
aforesaid insurance coverage and endorsements, including certificates certifying
that the aforesaid insurance and endorsements are in full force and effect.
Initially, this evidence shall be a certificate of insurance required hereunder.

     (iv) In the event either party fails to maintain in full force and effect any
of the insurance and endorsements required in terms of these sections, the other
party shall have the right (but not the obligation) to procure and maintain such
insurance or any part thereof. The cost of such insurance shall be payable by the
first party to the other party upon demand by the other party. The procurement of
such insurance or any part thereof by the other party shall not discharge or excuse
the first party’s obligation to comply with the provisions of Sections 18(b)(i) and
18(b)(ii).

     (c) Survival of Rights and Obligations. The rights and obligations of Section
18(a) shall survive the expiration or termination of this Agreement.

     19. Term and Termination.

     (a) Term. The term of this Agreement shall be as set forth in Section 6 of the
Alliance Agreement, unless earlier terminated as provided herein.

     (b) Termination as a Result of Changes of Law. In the event there is any change
in treaties, statutes or regulations of air transportation that materially affects the
rights and/or obligations presently in force with respect to the air transportation services
of Continental or Gulfstream or both, relating to CO* or 3M* Flights, then the carriers will
consult, within 30 days after any of the occurrences described herein, in order to determine
or seek mutual agreement as to what, if any changes to this Agreement are necessary or
appropriate, including but not limited to the early termination and cancellation of this
Agreement.

     (c) Other Termination Rights. In addition to any other provisions of this
Agreement, this Agreement may be terminated, without liability, as follows:

ix

 

     (i) By either carrier on 60 days’ prior written notice, if the other carrier
has breached any material provision of this Agreement unless such other carrier
cures such breach within such 60 day period;

     (ii) By either carrier immediately on notice, if the other carrier shall be
dissolved or shall fail to maintain its corporate existence, or shall have its
authority to operate as a scheduled airline suspended or revoked, either in whole or
with respect to the CO* Flights, or shall cease operations as a scheduled airline.

     (iv) By either carrier immediately on notice if the other carrier shall be
cited by any government authority for any significant noncompliance with a material
law, rule or regulation with respect to the marketing or operation of a CO* Flight;

     (v) By either carrier if a petition is filed by or against the other carrier
under bankruptcy law, or any other law providing for the relief of debtors, and the
affected party does not succeed in having such petition lifted or stayed within
sixty days from the date of entry; the carrier at its option may cancel this
Agreement immediately and exercise such other remedies as may be available at law
and/or in equity;

     (vi) By either carrier immediately on notice if the other carrier fails to
maintain the insurance coverage that is required to be maintained pursuant to
section 18 hereof.

     (vii) By Continental immediately on notice if

     A. Gulfstream shall fail to maintain any of its aircraft in an
airworthy condition and fails to conduct its flight operations in accordance
with the standards, rules and regulations promulgated by any government
authority; or

     B. Unless agreed otherwise by the carriers, Gulfstream shall have a
completion factor of less than 95% during any 21 day period or 50% during
any three day period with respect to CO* Flights (including in such
calculations all flights canceled less than one week prior to the date of
its scheduled operation and excluding flights not completed due to weather
or ATC);

     C. [Deleted.]

     (viii) By Gulfstream immediately on notice if

     A. Continental shall fail to maintain any of its aircraft in an
airworthy condition and fails to conduct its flight operations in accordance
with the standards, rules and regulations promulgated by any government
authority.

x

 

     20. Financial Covenants. Gulfstream covenants and agrees that during the term of this
Agreement:

     (a) Financial Statements and Reports. Gulfstream shall furnish to Continental
(i) as soon as practicable and in any event within ninety (90) days after the end of each
fiscal year of Gulfstream an audited balance sheet of Gulfstream as of the close of such
fiscal year, an audited statement of earnings and retained earnings of Gulfstream as of the
close of such fiscal year and an audited statement of cash flows for Gulfstream for such
fiscal year, prepared in accordance with generally accepted accounting principles
consistently applied and accompanied by an unqualified audit report prepared by an
independent certified public accountant acceptable to Continental showing the financial
condition of Gulfstream at the close of such year and the results of its operations during
such year and accompanied by a certificate of the President of Gulfstream, stating that to
the best of the knowledge of such officer, Gulfstream has kept, observed, performed and
fulfilled each covenant, term and condition of this Agreement during the preceding fiscal
year, (ii) within twenty (20) days of the end of each calendar month, a status report
indicating the financial performance of Gulfstream during such month and the financial
position of Gulfstream as of the end of such month, (iii) within forty-five (45) days of the
end of each quarter, a balance sheet of Gulfstream as of the close of such quarter and a
statement of earnings and retained earnings of Gulfstream as of the close of such quarter,
all in reasonable detail, and prepared substantially in accordance with generally accepted
accounting principals consistently applied (except for the absence of footnotes and subject
to year-end adjustments), and (iv) with reasonable promptness, such other financial data as
Continental may reasonable request.

     (b) Maintenance of Books and Records; Inspection. Gulfstream shall maintain its
books, accounts and records in accordance with generally accepted accounting principles
consistently applied, and permit Gulfstream, its officers and employees and any
professionals designated by Continental in writing, at Continental’s expense, to visit and
inspect any of its properties, corporate books and financial records, and to discuss its
accounts, affairs and finances with Gulfstream or the principal officers of Gulfstream
during reasonable business hours, all at such times as Continental may reasonably request;
provided that no such inspection shall materially interfere with the conduct of Gulfstream’s
business.

     (c) Taxes and Assessments. Gulfstream shall (i) file all tax returns and
appropriate schedules thereto that are required to be filed under applicable law, prior to
the date of delinquency, (ii) pay and discharge all taxes, assessments and governmental
charges or levies imposed upon Gulfstream upon its income and profits or upon any properties
belonging to it, prior to the date on which penalties attach thereto, and (iii) pay all
taxes, assessments and governmental charges or levies that, if unpaid, might become a lien
or charge upon any of its properties; provided, however, that Gulfstream in good faith may
contest any such tax, assessment, governmental charge or levy described in the foregoing
clauses (ii) and (iii) so long as appropriate reserves are maintained with respect thereto.

xi

 

     (d) Notice of Default. Gulfstream shall give written notice to Continental of
the occurrence of any breach under this Agreement promptly upon the occurrence thereof.

     (e) Notice of Litigation. Gulfstream shall give notice, in writing, to
Continental of (i) any actions, suits or proceedings wherein the amount at issue is in
excess of One Hundred Thousand No/100ths Dollars ($100,000.00) instituted by any persons
whomsoever against Gulfstream or affecting any of the assets of Gulfstream, and (ii) any
dispute, not resolved within sixty (60) days of the commencement thereof, between Gulfstream
on the one hand and any governmental regulatory body on the other hand, which dispute might
materially interfere with the normal operations of Gulfstream.

     (f) Guaranties; Loans: Payment of Debt. Gulfstream shall not, without
Continental’s prior express written consent, guarantee nor be liable in any manner, whether
directly or indirectly, or become contingently liable after the date of this Agreement in
connection with the obligations or indebtedness of any person or entity whatsoever, except
for the endorsement of negotiable instruments payable to Gulfstream for deposit or
collection in the ordinary course of business. Gulfstream shall not, without Continental’s
prior express written consent, which shall not be unreasonably withheld, make any loan,
advance or extension of credit to any person other than in the normal course of its
business.

     (g) Debt. Without the express prior written consent of Continental, Gulfstream
shall not create, incur, assume or suffer to exist indebtedness of any description
whatsoever, excluding:

     (i) the endorsement of negotiable instruments payable to Gulfstream for deposit
or collection in the ordinary course of business;

     (ii) debts incurred in the ordinary course of business (each of which,
individually, does not exceed $75,000); and

     (iii) the indebtedness listed on Schedule I hereto.

     (h) Debts and Obligations. Gulfstream shall pay and discharge or cause to be
paid and discharged promptly all debts and obligations of Gulfstream as they come due;
provided that Gulfstream may in good faith contest, by proper legal actions or proceedings,
the validity or amount of any such debt or obligation and, for the duration of such contest,
Gulfstream’s obligation pursuant to this paragraph (a) shall be suspended;

     21. Trademarks.

     (a) Gulfstream shall have a nonexclusive, nontransferable, revocable license to use the
Continental Service Marks (as defined below) in its marketing programs for the purpose of
promoting Shared Code Segments. All advertising programs using any Continental Service Marks
shall be subject to Continental’s prior approval. In general, Gulfstream’s use of the
Continental Service Marks shall do no more than identify the code share relationship between
Continental and Gulfstream, and advertise that schedules

xii

 

are coordinated to provide convenient connections. Any marketing program, advertising
brochures, schedules, signs or information disseminated to the public or intended to be
disseminated to the public (“Advertising Material”) shall reflect that Continental and
Gulfstream are operated separately and shall comply with any DOT policy on airline
designator code sharing. Gulfstream is specifically prohibited from using any of the
Continental Service Marks on its aircraft or other equipment, on its stationary, or
elsewhere unless Gulfstream has received prior specific authorization in writing from
Continental. Gulfstream hereby acknowledges Continental’s exclusive ownership of the
Continental Service Marks and agrees that it will not do anything that would infringe,
abridge or adversely affect, impair or reduce the value or validity of the Continental
Service Marks. In no event shall Gulfstream allow the use of any Continental Service Marks
in marketing, selling, promoting or otherwise identifying or referencing any flight which is
not a Shared Code Segment.

     (b) Continental shall have a nonexclusive, nontransferable, revocable license to use
the Gulfstream Service Marks (as defined below) in its marketing programs for the purpose of
promoting Shared Code Segments. All advertising programs using any Gulfstream Service Marks
shall be subject to Gulfstream’s prior approval. In general, Continental’s use of the
Gulfstream Service Marks shall do no more than identify the code share relationship between
Continental and Gulfstream, and advertise that schedules are coordinated to provide
convenient connections. Any Advertising Material shall reflect that Continental and
Gulfstream are operated separately and shall comply with any DOT policy on airline
designator code sharing. Continental is specifically prohibited from using any of the
Gulfstream Service Marks on its aircraft or other equipment, on its stationary, or elsewhere
unless Continental has received prior specific authorization in writing from Gulfstream.
Continental hereby acknowledges Gulfstream’s exclusive ownership of the Gulfstream Service
Marks and agrees that it will not do anything that would infringe, abridge or adversely
affect, impair or reduce the value or validity of the Gulfstream Service Marks. In no event
shall Continental allow the use of any Gulfstream Service Marks in marketing, selling,
promoting or otherwise identifying or referencing any flight which is not a Shared Code
Segment.

     (c) As used herein the term “Service Marks” shall include, without limitation: (i) with
respect to Continental: “Continental”, the “CO” and “CO*” designator codes, BusinessFirst
and “OnePass”, and (ii) with respect to Gulfstream: “Gulfstream International” and the “3M”
designator code.

     22. Entire Agreement, Waivers and Amendments. This Agreement constitutes the entire
understanding of the carriers with respect to the subject matter hereof superseding all prior
discussions and agreements, written or oral. This Agreement may not be amended, nor may any of its
provisions be waived, except by writing signed by both carriers. No delay on the part of either
carrier in exercising any right power or privilege hereunder shall operate as a waiver hereof, nor
shall any waiver operate as a continuing waiver of any right, power or privilege.

     23. Notices. All notices given hereunder shall be in writing delivered by hand,
certified mail, telex, or telecopy to the carriers at the following addresses:

If to Continental:

xiii

 

	 	 	 
	Continental Airlines, Inc.
	 	Telephone No.: (713) 324-2966
	1600 Smith
	 	Telecopier No.: (713) 324-3099
	Houston, Texas-USA 77002
	 	 
	Attention: Senior Vice President — Corporate Development
	 	 
	 
	 	 
	With copy to:
	 	 
	 
	 	 
	Continental Airlines, Inc.
	 	Telephone No.: (713) 324-2948
	1600 Smith
	 	Telecopier No.: (713) 324-2687
	Houston, Texas-USA 77002
	 	 
	Attention: Executive Vice President
and General Counsel
	 	 
	 
	 	 
	If to Gulfstream:
	 	 
	 
	 	 
	Thomas Cooper
	 	Telephone No.: (954) 266-3000
	President & Chief Executive Officer
	 	Telecopier No.: (954) 266-3030
	1815 Griffith Road, Suite 400
	 	 
	Dania, Florida 33004
	 	 

xiv

 

REVENUE SETTLEMENT AGREEMENT

between

CONTINENTAL AIRLINES (CO — 005)

and

GULFSTREAM INTERNATIONAL AIRLINES (3M — 449)

Effective with the date specified in Paragraph B below, Continental Airlines, hereinafter referred
to as CO, and Gulfstream International Airlines, hereinafter referred to as 3M, agree to the
following bilateral revenue settlement agreement:

A. APPLICATION

	 	1.	 	This Agreement supersedes all previous bilateral revenue settlement (prorate)
agreements between CO and 3M for routings specified in Paragraph C.1 below.
	 
	 	2.	 	The terms of this Agreement are valid when 3M accepts for transportation over its lines
bearing the CO flight designator, documents and fares issued by CO, as specified in
Attachments A and B hereto.
	 
	 	3.	 	A third carrier may be permitted on the routing, provided tickets are issued by CO.

B. VALIDITY

	 	1.	 	The terms of this Agreement shall become effective for tickets issued on or after 01
April 1997. Written or telegraphic notice of termination or re-negotiation may be given by
either party thirty (30) days in advance. For tickets issued prior to such termination
date, the terms of this Agreement shall apply.

C. APPLICABLE ROUTINGS

	 	1.	 	This Agreement applies for tickets issued for transportation via the services of CO
(including CO Express) connecting to code share flights operated by 3M bearing the CO code
between any two of the following locations:
	 
	 	 	 	MCO/FLL/MIA/TPA/EYW/FPO/NAS/GNV/TLH/MHH/ELH/TCB/JAX/PBI

D. FARES

	 	1.	 	This Agreement shall not apply to fares which are constructed using a combination of
local fares.
	 
	 	2.	 	Through fares will be filed and maintained by CO.

 

 

RSA CO/3M — Page 2

E. PRORATION DETAILS

	 	1.	 	CO documents/fares accepted by 3M shall be settled as specified in Attachment A.
	 
	 	2.	 	In the event lifted, CO documents/fares understood not to be accepted by 3M shall be
settled as specified in Attachment B.
	 
	 	3.	 	The standard Interline Service Charge shall apply.

F. DISCOUNTS

	 	1.	 	Children and Infant discounts shall apply. The 3M prorate will be reduced by the same
percent of discount used to arrive at the following fares: Children fares, Compassion
fares, and Senior Citizen fares. Infants not occupying a seat shall be free on 3M sectors.

This agreement is made in duplicate, one copy of each to be filed at the below signatories office.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	For and on Behalf of	 	 	 	For and on Behalf of	 	 
	CONTINENTAL AIRLINES	 	 	 	GULF STREAM INTERNATIONAL AIRLINES	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	/s/ James E. Compton
 

James E. Compton
	 	 	 	Name:
	 	/s/ Thomas L. Cooper
 

	 	 
	Title:

	 	Staff Vice President — Pricing
	 	 	 	Title:
	 	President & C.E.O.	 	 
	Date:

	 	January 9, 1997
	 	 	 	Date:
	 	January 9, 1997	 	 

 

 

			
	Attachment A
	 	CO/3M Revenue Settlement Agreement

Proration Details — CO Documents and Fares Accepted by 3M

	 	 	 	 	 
	CO	 	 	 	 
	Document	 	Description	 	Settlement
	 

	 	Domestic USA & USA to/from Bahamas Published Fares
	 	[*]
	 
	 	 	 	 
	 

	 	Domestic USA “Private” Published
Compassion Fares
	 	[*]
	 
	 	 	 	 
	 

	 	USA to/from Canada & Bahamas to/from Canada Published Fares
	 	[*]
	 
	 	 	 	 
	 

	 	USA to/from Canada “Private” Published Compassion Fares	 	[*]
	 
	 	 	 	 
	 

	 	Domestic USA, USA-Canada Point to
Point “Visit North America” Fares
	 	[*]
	 
	 	 	 	 
	 

	 	International Published Fares (including Round the World Fares):
	 	[*]
	 

	 	     First Class/Business Class	 	 
	 

	 	     Economy Class Unrestricted	 	 
	 

	 	     Economy Class Restricted	 	 
	 

	 	     Economy Class Special/Promotional	 	 
	 
	 	 	 	 
	 

	 	International Published Inclusive Tour/Group/Student
Fares
	 	[*]
	 
	 	 	 	 
	 

	 	Domestic and International Unpublished Bulk/Wholesale/Consolidator/Negotiated
Fare
tickets issued with or without a fare. Includes
Convention and Corporate fares:	 	 
	 

	 	     First Class/Business Class/Unrestricted
	 	[*]
	 

	 	     Economy Class Unrestricted	 	 
	 
	 	 	 	 
	 

	 	     Economy Class Restricted
	 	[*]
	 

	 	     Economy Class Special/Promotional	 	 
	 
	 	 	 	 
	 

	 	Promotional $ off tickets (Travel Discount Coupon)
	 	Covered by Separate Agreement

Page 1

 

			
	Attachment A
	 	CO/3M ‘Revenue Settlement Agreement

Proration Details — CO Documents and Fares Accepted by 3M

	 	 	 	 	 
	CO	 	 	 	 
	Document	 	Description	 	Settlement
	 

	 	Visit North America 3-8 Coupon Fare Program (VUSA)
	 	[*]
	 
	 	 	 	 
	 

	 	Industry/Agency Discounts (1D75/AD50)
	 	[*]
	 
	 	 	 	 
	104

	 	Freedom Trip 4 Coupon booklets
	 	[*]
	 
	 	 	 	 
	108

	 	Freedom Trip 8 Coupon booklets
	 	[*]
	 
	 	 	 	 
	029

	 	FIM/On-line Transfer Voucher
	 	[*]
	 
	 	 	 	 
	407

	 	Special Services Ticket
	 	[*]
	 
	 	 	 	 
	411

	 	Pre-Paid Ticket Advice
	 	[*]
	 
	 	 	 	 
	420

	 	Manual Ticket — 2 Coupon
	 	[*]
	 
	 	 	 	 
	440

	 	Manual Ticket — 4 Coupon
	 	[*]
	 
	 	 	 	 
	441

	 	Transitional Automated Ticket (TAT)
	 	[*]
	 
	 	 	 	 
	452

	 	Excess Baggage Ticket
	 	[*]
	 
	 	 	 	 
	490

	 	CARE $25/1000 mi Travel Discount Coupon
	 	Covered by Separate Agreement
	 
	 	 	 	 
	491

	 	CARE $50/2000 mi Travel Discount Coupon
	 	Covered by Separate Agreement
	 
	 	 	 	 
	492

	 	CARE $100/5000 mi Travel Discount Coupon
	 	Covered by Separate Agreement
	 
	 	 	 	 
	 

	 	Airscrip Certificates
	 	[*]

Page 2

 

			
	Attachment A
	 	CO/3M Revenue Settlement Agreement

Proration Details — CO Documents and Fares Not Accepted by 3M

	 	 	 	 	 
	CO	 	 	 	 
	Document	 	Description	 	Settlement
	024

	 	Non-Revenue Payroll Deduct Trip Pass

(Space Available)
	 	[*]
	 
	 	 	 	 
	044

	 	Non-Revenue Bankruptcy Trip Pass

(Space Available)
	 	[*]
	 
	 	 	 	 
	046

	 	Non-Revenue Write Your Own Trip Pass

(Space Available)
	 	[*]
	 
	 	 	 	 
	404

	 	Complimentary Ticket
	 	[*]
	 
	 	 	 	 
	471

	 	OnePass Goodwill 1 & 2 Upgrade Certificates
	 	N/A
	 
	 	 	 	 
	489

	 	Continental Flite-Check
	 	[*]
	 
	 	 	 	 
	631

	 	Freedom Passport Flight Coupons
	 	[*]
	 
	 	 	 	 
	 

	 	Promotional $0 Fare Tickets
	 	[*]
	 
	 	 	 	 
	 

	 	Zone Fares
	 	[*]

Page 3

 

December 26, 2002

GULFSTREAM INTERNATIONAL AIRLINES, INC.

1815 Griffith Road

Dania, Florida 33004

Attention: Chairman

			
	     RE:	 	Amendment One to the Amended and Restated Alliance Agreement

Gentlemen:

     As you are aware, CONTINENTAL AIRLINES, INC. (“Continental”) and GULFSTREAM INTERNATIONAL
AIRLINES, INC. (“Gulfstream”) are each party to the Amended and Restated Alliance Agreement, dated
December 30, 1999 (the “Alliance Agreement”). Continental and Gulfstream each desire to amend the
Alliance Agreement in accordance with and subject to the terms and conditions of this Letter
Agreement, as follows:

     1. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding to Section 1 of the Alliance Agreement the following text:

“Continental may cease displaying its designator code during any calendar
quarter in up to [*] markets where Shared Code Segments operate upon ninety
(90) days’ prior written notice; provided that Continental may not cease
displaying its designator code in more than [*] markets during any year.”

     2. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by deleting the definition of “Average Coupon Amount” set forth in Section 5(a)(ii)
of the Alliance Agreement and replacing it with the following text:

[*]

     3. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding to Section 5 of the Alliance Agreement a new Subsection (c) containing the
following text:

““Connect Incentive” is defined as a $ [*] payment from Continental to
Gulfstream for any flown passenger itinerary issued by Continental that
involves a connection between a Continental aircraft and a Gulfstream
aircraft and results in a prorated value of greater than $ [*] to Gulfstream
as defined in the Revenue Settlement Agreement dated January 9, 1997. The
Connect Incentive will be included in the normal settlement process as
defined in Section 5 of the Alliance Agreement.”

 

 

GULFSTREAM INTERNATIONAL AIRLINES, INC.

December 26, 2002

Page 2

     4. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by deleting the text of Section 9 of the Alliance Agreement in its entirety.

     5. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding to Section 19 of Exhibit C of the Alliance Agreement a new Subsection
(C)(x) containing the following text:

“By Continental or Gulfstream, with or without cause, upon one hundred
twenty (120) days’ prior written notice.”

     6. Continental and Gulfstream acknowledge that revenue settlement under the Alliance Agreement
has not been in accordance with the terms and conditions of the Revenue Settlement Agreement, dated
January 9, 1997, between Continental and Gulfstream. Continental and Gulfstream agree that,
effective with the revenue settlement for December revenues in the month of January, revenue
settlement between Continental and Gulfstream will be performed in accordance with the terms and
conditions of such Revenue Settlement Agreement and Section 5 of the Alliance Agreement. The
parties agree that Continental will be under no obligation to advance sums or extend credit to
Gulfstream other than as provided in Section 5 of the Alliance Agreement or as otherwise agreed
specifically in writing.

     Capitalized terms not defined herein shall be defined as provided in the Alliance Agreement.
Except as specifically amended or modified hereby, the Alliance Agreement shall remain in effect as
written.

     If Gulfstream is in agreement with the above, please indicate its agreement by having an
authorized representative sign below in the space provided and return a signed copy of this Letter
Agreement to the undersigned at the address above.

	 	 	 	 	 
	 	Very truly yours,

CONTINENTAL AIRLINES, INC.

 	 
	 	By:  	/s/ David Grizzle
 	 
	 	 	David Grizzle 	 
	 	 	Senior Vice President — Corporate Development 	 
	 

	 	 	 	 	 
	AGREED: GULFSTREAM INTERNATIONAL AIRLINES, INC.

 	 	 
	By:  	/s/ Thomas L. Cooper
 	 	 
	 	Title:                    President & CEO 	 	 
	 	Date:  December 26, 2002 	 	 
	 

Page 2

 

August 8, 2003

GULFSTREAM INTERNATIONAL AIRLINES, INC.

1815 Griffith Road

Dania, Florida 33004

Attention: Chairman

			
	     RE:	 	Amendment Two to the Amended and Restated Alliance Agreement

Gentlemen:

     As you are aware, CONTINENTAL AIRLINES, INC. (“Continental”) and GULFSTREAM INTERNATIONAL
AIRLINES, INC. (“Gulfstream”) are each party to the Amended and Restated Alliance Agreement, dated
December 30, 1999 (as amended by Amendment One, the “Alliance Agreement”). Continental and
Gulfstream each desire to amend the Alliance Agreement in accordance with and subject to the terms
and conditions of this Letter Agreement, as follows:

     1. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by deleting the following text from Section 1 of the Alliance Agreement:

“Continental may cease displaying its designator code
during any calendar quarter in up to [*] markets where
Shared Code Segments operate upon ninety (90) days’
prior written notice; provided that Continental may
not cease displaying its designator code in more than
[*] markets during any year.”

The text shall be replaced by the following:

“After August 1, 2006 Continental may cease displaying
its designator code during any calendar quarter in up
to [*] markets where Shared Code Segments operate upon
ninety (90) days’ prior written notice; provided that
while this Agreement is in effect Continental may not
cease displaying its designator code in more than [*]
markets during any year.”

     2. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by deleting the text of Subsection (C)(x) of Section 19 of Exhibit C of the Alliance
Agreement and replacing it with the following text:

“By Continental or Gulfstream, with or without cause,
upon one hundred twenty (120) days’ prior written
notice which notice may not be issued prior to April
3, 2006.”

Page 1 of 3

 

     3. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by replacing Section 10 Subsection C of Exhibit C of the Alliance Agreement a with
the following text:

“Gulfstream will reimburse Continental for travel
certificates issued to compensate passengers
inconvenienced as a result of flight irregularities on
Shared Code Segments on a [*] basis”

     4. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding a new Subsection(d) to Section 10 of Exhibit C of the Alliance Agreement a
with the following text:

“Gulfstream will pay Continental $ [*] for every
United Airlines’ passenger that is deemed by
Continental to be a United Airlines’ passenger who is
traveling without a passenger name record in
Continental’s reservation system.”

     5. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by deleting Section 19 Subsection c (vii) (C) of Exhibit C of the Alliance Agreement
in its entirety.

     Capitalized terms not defined herein shall be defined as provided in the Alliance Agreement.
Except as specifically amended or modified hereby, the Alliance Agreement shall remain in effect as
written.

     This Letter Agreement may be executed in any number of counterparts and by different parties
hereto 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.

Page 2 of 3

 

     If Gulfstream is in agreement with the above, please indicate its agreement by having an
authorized representative sign below in the space provided and return a signed copy of this Letter
Agreement to the undersigned at the address above.

	 	 	 	 	 
	 	Very truly yours,

CONTINENTAL AIRLINES, INC.

 	 
	 	By:  	/s/ David Grizzle
 	 
	 	 	David Grizzle 	 
	 	 	Senior Vice President — Corporate Development 	 
	 

	 	 	 	 	 
	AGREED: GULFSTREAM INTERNATIONAL AIRLINES, INC.

 	 	 
	By:  	/s/ Thomas L. Cooper
 	 	 
	 	Title:                    Chief Executive Officer 	 	 
	 	Date: 	 	 

Page 3 of 3

 

	 	 	 	 	 

			
	J. David Grizzle
	 	[CONTINENTAL AIRLINES LOGO]
	Senior Vice President — Marketing Strategy	 	 
	And Corporate Development	 	 
	Telephone: (713) 324-2966	 	 
	Fax: (713) 324-3099	 	 
	E-Mall: dgrizz@coair.com	 	 

June 23, 2004

GULFSTREAM INTERNATIONAL AIRLINES, INC.

1815 Griffith Road

Dania, Florida 33004

Attention: Chairman

			
	     Re:	 	Amendment Three to the Amended and Restated Alliance Agreement

Gentlemen:

     As you are aware, CONTINENTAL AIRLINES, INC. (“Continental”) and GULFSTREAM INTERNATIONAL
AIRLINES, INC. (“Gulfstream”) are each party to the Amended and Restated Alliance Agreement, dated
December 30, 1999 (as amended by Amendment One and Amendment Two thereto, the “Alliance
Agreement”). Continental and Gulfstream each desire to amend the Alliance Agreement as follows:

     1. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding the following text to Section 3 of the Alliance Agreement:

“On and after the date any aircraft with 25 seats or more is operated in charter or
scheduled revenue service by Gulfstream or any Gulfstream Affiliate, the Connect
Incentive thereafter will be reduced to $[*]. If Gulfstream does not acquire,
either through a sublease or purchase four (4) or more Embraer 120 aircraft from
Continental by June 30, 2005, the Connect Incentive thereafter will be reduced to $
[*]. If Gulfstream pays in full any and all sums due Continental under the Amended
and Restated Note, dated August 8, 2003, and the associated Credit Agreement (as
defined therein), the Connect Incentive will thereafter be $ [*]. “Affiliate” means,
in respect of any specified person, any person or entity that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, the person specified. Control is the power, whether or
not exercised, to direct or cause the direction of management or policies of a
specified person.”

 

 

			
	GULFSTREAM INTERNATIONAL AIRLINES, INC.
	 	[CONTINENTAL AIRLINES LOGO]
	June 23, 2004	 	 
	Page 2	 	 

Capitalized terms not defined herein shall be defined as provided in the Alliance Agreement. Except
as specifically amended or modified hereby, the Alliance Agreement shall remain in effect as
written. If Gulfstream is in agreement with the above, please indicate its agreement by having an
authorized representative sign below in the space provided and return a signed copy of this Letter
Agreement to the undersigned at the address above.

	 	 	 	 	 
	 	Very truly yours,

CONTINENTAL AIRLINES, INC.

 	 
	 	By:  	/s/ David Grizzle
 	 
	 	 	David Grizzle 	 
	 	 	Senior Vice President — Strategic Marketing &
Corporate Development 	 
	 

	 	 	 	 	 
	AGREED: GULFSTREAM INTERNATIONAL AIRLINES, INC.

 	 	 
	By:  	/s/ David F. Hackett
 	 	 
	 	Title:                    President 	 	 
	 	Date: June 23, 2004 	 	 
	 

 

 

March 14, 2006

GULFSTREAM INTERNATIONAL AIRLINES, INC.

3201 Griffith Road , 4th Floor

Ft. Lauderdale, Florida 33312

Attention: President

			
	     RE:	 	Amendment Four to the Amended and Restated Alliance Agreement

Gentlemen:

     As you are aware, CONTINENTAL AIRLINES, INC. (“Continental”) and GULFSTREAM INTERNATIONAL
AIRLINES, INC. (“Gulfstream”) are each party to the Amended and Restated Alliance Agreement, dated
December 30, 1999 (as amended by Amendment One and Amendment Two thereto, the “Alliance
Agreement”). Continental and Gulfstream each desire to amend the Alliance Agreement as follows:

     1. Continental continues to experience customer service issues related to Gulfstream’s
codeshare agreement with United Airlines, Inc. (“United”) due to incompatible technology, and
booking irregularities. Accordingly, Continental and Gulfstream agree to amend the Alliance
Agreement, effective the date first written above, by adding a new Section 9 to the Alliance
Agreement that reads:

[*]

     2. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding a new Section 1. (a) to the Alliance Agreement that reads:

“Notwithstanding any other provision in this Agreement to the contrary,
Gulfstream shall obtain Continental’s prior written consent, which shall not
be unreasonably withheld, prior to increasing the flights on which
Continental shall be obligated to place its designator code or changing or
increasing the aircraft which Gulfstream has in service on flights on which
Continental places its designator code. Continental shall be deemed to have
accepted revisions to the restrictions set forth in this Section 1 (a) when
it publishes schedules in SHARES with respect to such additional flights or
aircraft.”

     3. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding a new Section 13 to the Alliance Agreement that reads:

“At Continental’s option and at all times during the term of this Agreement,
with respect to Gulfstream and GAIR or any affiliate or successor thereof,
Gulfstream and GAIR agree to ensure that an individual designated from time
to time by Continental shall be a member of the board of directors of
Gulfstream or GAIR, or affiliate thereof, as the case

-15-

 

may be. In furtherance of such endeavors, at the time of any nomination,
appointment or election of any board member of Gulfstream or GAIR, or
affiliate thereof, when no Continental designee is a member of such board,
shall nominate or appoint, as the case may be, an individual designated by
Continental at such time and, in the event of a shareholders vote, shall
recommend to shareholders such individual’s election to the board. In
addition, at any time when no Continental designee is a member of its board
and at Continental’s request, Gulfstream or GAIR, or affiliate, as the case
may be, shall invite the individual designated by Continental at such time
to attend all board meetings (including telephonic meetings) and review all
actions taken without a meeting, and shall provide such individual, at the
same time as provided to board members, all materials provided to board
members in connection with such meetings or actions taken without a
meeting.”

     4. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by deleting the text of Subsection (C)(x) of Section 19 of Exhibit C of the Alliance
Agreement and replacing it with the following text:

“By Continental or Gulfstream with or without cause upon one hundred eight
(180) days’ prior written notice which notice may not be issued prior to
November 3, 2011.”

     5. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding a new Section 14 to the Alliance Agreement that reads:

“Gulfstream agrees to give any furloughed Continental pilot preferential
interview status for any pilot openings that may occur at Gulfstream. Any
furloughed Continental pilot hired by Gulfstream will not be required to
resign from Continental as a condition for applying or being employed as a
pilot of Gulfstream. Continental agrees to give Gulfstream pilots
preferential interview status for any pilot opening that may occur at
Continental, consistent with commitments concerning pilots of other
carriers.”

     6. Continental and Gulfstream agree to amend the Alliance Agreement, effective the date first
written above, by adding a new Subsection D to Exhibit C Section 19(c)(vii) of the Alliance
Agreement that reads:

“A Change of Control occurs to which Continental shall not have consented in
writing in advance. For purposes of this Agreement, the term “Change of
Control” shall mean: (i) Gulfstream or GAIR or any other Person controlling
Gulfstream or GAIR (a “Gulfstream Party”) consolidates with, or merges with
or into, another Person or conveys, transfers, leases or otherwise disposes
of all or substantially all of its assets to any Person, or any Person
consolidates with, or merges with or into, a Gulfstream Party in any such
event pursuant to a transaction in

 

 

which the voting securities of a Gulfstream Party are converted into or
exchanged for cash or securities, except where the holders of voting
securities of the Gulfstream Party immediately prior to such transaction own
not less than a majority of the voting securities of the surviving or
transferee corporation immediately after such transaction, in each case
other than any such transaction between any Gulfstream Party on the one
hand, and Continental and/or any of its Subsidiaries on the other; or (ii)
any transaction as a result of which a Gulfstream Party and another air
carrier (other than Continental and its successors and any Subsidiary
thereof) are legally combined; or (iii) a transaction as a result of which a
Gulfstream Party acquires, directly or indirectly, beneficial ownership of
10% or more of the capital stock or voting power of an air carrier (provided
that Continental’s consent shall not be unreasonably withheld in the case of
an air carrier which, together with its affiliates, operates only aircraft
certified for 30 passengers or less); or (iv) the direct or indirect
acquisition by another air carrier (other than Continental and its
successors and any Subsidiary thereof) or any Person directly or indirectly
controlling another air carrier of beneficial ownership of 10% or more of
the capital stock or voting power of a Gulfstream Party; or (v) the direct
or indirect acquisition by any “person” or “group” (as such terms are used
in Section 13(d) of the Securities Exchange Act of 1934) not described in
clause (iv) above (and other than Continental and its successors and
any Subsidiary thereof), of beneficial ownership of more than 25% of the
capital stock or voting power of a Gulfstream Party; or (vi) the sale,
transfer or other disposition of all or substantially all of the airline
assets of a Gulfstream Party on a consolidated basis directly or indirectly
to another air carrier (other than Continental and its successors and any
Subsidiary thereof) or its affiliate, whether in a single transaction or a
series of related transactions; or (vii) the Incumbent Directors of a
Gulfstream Party (meaning, in each case, members of the board of directors
of such party of who (a) were members of such board of directors as of
January 1, 2006 or (b) became a director subsequent to January 1, 2006,
whose appointment to fill a vacancy or to fill a new position on such board
of directors or whose nomination for election by the shareholders of such
Gulfstream Party was approved by a vote of at least a majority of the
directors then comprising the Incumbent Directors) cease for any reason to
constitute at least a majority of the board of directors of such Gulfstream
Party; or (viii) the execution by a Gulfstream Party of bona fide definitive
agreements, the consummation of the transactions contemplated by which would
result in a transaction described in the immediately preceding clauses.”

     Capitalized terms not defined herein shall be defined as provided in the Alliance Agreement.
Except as specifically amended or modified hereby, the Alliance Agreement shall remain in effect as
written.

 

 

     If Gulfstream is in agreement with the above, please indicate its agreement by having an
authorized representative sign below in the space provided and return a signed copy of this Letter
Agreement to the undersigned at the address above.

	 	 	 	 	 
	 	Very truly yours,

CONTINENTAL AIRLINES, INC.

 	 
	 	By:  	 	 
	 	 	Jeffery Smisek 	 
	 	 	Presidentexv10w9

 

Exhibit 10.9

USED BEECHCRAFT 1900D AIRLINER OPERATING LEASE AGREEMENT

between

RAYTHEON AIRCRAFT CREDIT CORPORATION

and

GULFSTREAM INTERNATIONAL AIRLINES, INC.

LEASE AGREEMENT NO. ___

AIRCRAFT SERIAL NO. UE-137

DATE: AUGUST 7, 2003

 

 

USED BEECHCRAFT 1900D AIRLINER LEASE AGREEMENT

between

RAYTHEON AIRCRAFT CREDIT CORPORATION

and

GULFSTREAM INTERNATIONAL AIRLINES, INC.

INDEX

	 	 	 	 	 
	 	 	Page
	ARTICLE 1: LEASE OF AIRCRAFT
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2: TERM OF LEASE AND RENTAL PAYMENTS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 3: AIRCRAFT SELECTION
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 4: LESSEE’S FINAL ACCEPTANCE OF AIRCRAFT
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 5: WARRANTIES AND LESSOR’S DISCLAIMER
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 6: OWNERSHIP AND INSPECTION OF AIRCRAFT
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 7: MAINTENANCE AND RECORDS
	 	 	5	 
	 
	 	 	 	 
	 
	 	 	 	 
	ARTICLE 8: USE AND OPERATION OF AIRCRAFT
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 9: INSURANCE
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 10: LOSS OR DAMAGE
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 11: GENERAL INDEMNITIES
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 12: LICENSES, CERTIFICATES, PERMITS, FEES AND TAXES
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 13: DEFAULT AND REMEDIES
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 14: RETURN OF AIRCRAFT
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 15: ASSIGNMENTS AND BENEFITS
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 16: NOTICES
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 17: LESSEE’S REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 18: DISPUTES
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 19: MISCELLANEOUS
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 20: EARLY TERMINATION OPTION
	 	 	24	 
	 
	 	 	 	 

i 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 21: OPTION TO PURCHASE
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 22: GROUNDING OF AIRCRAFT
	 	 	25	 

	 	 	 
	Exhibit A 

	 	Schedule of Rental Payments
	 
	 	 
	Exhibit B

	 	Stipulated Aircraft Value
	 
	 	 
	Exhibit C

	 	Certificate of Final Acceptance

 ii

 

 

OPERATING LEASE AGREEMENT

     This Operating Lease Agreement (“Agreement”) is made and entered into at Wichita, Kansas, as
of the date of its execution by the last of the parties hereto to execute the same, by and between
RAYTHEON AIRCRAFT CREDIT CORPORATION, a Kansas corporation, with its principal place of business at
101 South Webb Road, Suite 300, Wichita, Kansas 67207 (hereafter “Lessor”), and GULFSTREAM
INTERNATIONAL AIRLINES, INC., a Florida corporation, with its principal place of business at 1815
Griffin Road, Suite 400, Dania, Florida 33004 (“Lessee”). This Lease Agreement shall hereinafter
be occasionally referred to as the “Lease”.

     This Agreement is entered into pursuant to the terms and conditions of the certain Third
Restructuring Agreement between the parties, dated August 5, 2003 (“Third Restructuring
Agreement”).

     In consideration of the mutual promises, covenants and agreements set forth herein, Lessor and
Lessee agree as follows:

ARTICLE 1:  LEASE OF AIRCRAFT

	1.1	 	Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, one (1) used Beechcraft
Model 1900D Airliner aircraft manufactured by Raytheon Aircraft Company (hereafter
“Manufacturer”), Manufacturer’s Serial No UE-137, FAA. Registration No: N81533, together with
the engines and propellers set forth on Exhibit “C” (hereinafter collectively referred to as
the “Aircraft”).
	 
	1.2	 	All Exhibits referred to herein and attached hereto are by this reference incorporated as an
integral part of this Lease, subject to the terms and conditions set forth herein.
	 
	1.3	 	Lessee is the holder of U.S. Federal Aviation Administration (“FAA”) Air Carrier Certificate
No. GUUA428B issued pursuant to 14 CFR § 121/135, and intends to operate the Aircraft to be
furnished to it hereunder pursuant to said Certificate.
	 
	1.4	 	This Lease is entered into in accordance with the terms and conditions of the certain Third
Restructuring Agreement.
	 
	 	 	ARTICLE 2:  TERM OF LEASE AND RENTAL PAYMENTS
	 
	2.1	 	Subject to the Early Termination Option and the Option to Purchase set forth in the Third
Restructuring Agreement, this Lease shall be for a term of Eighty-Four (84) months (hereafter
“Lease Term”) The Lease Term will commence on August 7, 2003 (“Lease Commencement Date”).
Upon expiration or termination of this Lease as provided herein, Lessee will return the
Aircraft to Lessor in accordance with the provisions set forth below in Article 14.
	 
	2.2	 	Lessee shall pay to Lessor each of the monthly rental payments specified in the Schedule of
Rental Payments attached hereto as Exhibit “A”. Lessee shall make all rental and other
payments to Lessor required under this Lease, in funds subject to immediate

1

 

	 	 	withdrawal, to such bank account as Lessor may from time to time specify. Lessee’s
obligations to pay all rent and other sums payable hereunder are absolute and unconditional,
and without regard to: (A) any write-up, set-off, counterclaim or any other right which
Lessee may have against Lessor, the Manufacturer, the manufacturers of any other part of the
Aircraft, or any other person for any reason whatsoever; (B) unavailability or interruption
in use of the Aircraft, including governmental requisition thereof, or limitations or
restrictions in use of the Aircraft due to governmental action; (C) bankruptcy,
reorganization or similar legal status on the part of Lessor, Lessee, any of the aforesaid
manufacturers or any other person; (D) Total Loss of the Aircraft until this Lease is
terminated upon receipt by Lessor of the Stipulated Value in accordance with Article 10.2;
and (E) any default of Lessee under this Lease, including, but not limited to, any failure
of Lessee to redeliver the Aircraft at the end of the Lease Term.
	 
	2.3	 	If any payment due hereunder to Lessor by Lessee is delayed, directly or indirectly, by
Lessee’s action or inaction, then such delayed payment shall be subject to interest at 1.25
times the prime interest rate charged by Bank of America (New York, N.Y.) during the period of
such nonpayment.

ARTICLE 3:  AIRCRAFT SELECTION

	3.1	 	Lessee acknowledges and agrees that (i) Lessee previously operated the Aircraft in commuter
airline services; (ii) the Aircraft selected to be leased hereunder is of the quality, size,
design, capacity and manufacture selected by Lessee in its sole discretion; and (iii) Lessee
is satisfied that the Aircraft selected is suitable for Lessee’s purposes.

ARTICLE 4:  LESSEE’S FINAL ACCEPTANCE OF AIRCRAFT

	4.1	 	Delivery of Aircraft. The Aircraft shall be offered for acceptance and delivery in
accordance with the following procedure:

	 	(A)	 	The parties acknowledge that Lessee is currently in possession of the Aircraft
and the Aircraft shall remain in the possession of Lessee through the delivery and
acceptance of the Aircraft under this Lease.
	 
	 	(B)	 	The Aircraft shall be deemed to have been delivered to Lessee upon execution
and delivery by Lessee of the Certificate of Acceptance and Delivery in the form
attached hereto as Exhibit “C”.
	 
	 	(C)	 	The Aircraft shall be deemed to have been delivered at the geographical point
where the Aircraft was located at the time of the execution of the Certificate of
Acceptance and Delivery.

ARTICLE 5:  WARRANTIES AND LESSOR’S DISCLAIMER

	5.1	 	Lessor warrants that Lessee shall have the right to possession and quiet enjoyment of the
Aircraft during the Lease Term so long as Lessee is not in default.

2

 

	5.2	 	LESSEE ACKNOWLEDGES AND UNDERSTANDS THAT ANY MANUFACTURER’S WARRANTY COVERAGE OFFERED OR
AVAILABLE ON THE AIRCRAFT SHALL BE THE SUBJECT OF A SEPARATE CONTRACTUAL AGREEMENT BETWEEN
LESSEE AND THE AIRCRAFT MANUFACTURER, AS AMENDED BY THE THIRD RESTRUCTURING AGREEMENT.
	 
	5.3	 	THE PARTIES ACKNOWLEDGE THAT (i) THE AIRCRAFT HAS BEEN IN THE POSSESSION OF AND IS BEING
OPERATED BY LESSEE FOR THE PAST ___YEARS, (ii) THE AIRCRAFT HAS BEEN OUTSIDE OF THE CARE,
CUSTODY AND CONTROL OF LESSOR DURING THIS TIME PERIOD, AND (iii) THAT SELLER HAS NOT INSPECTED
OR REVIEWED THE CONDITION OF THE AIRCRAFT PRIOR TO ENTERING INTO THIS LEASE. THEREFORE,
LESSOR LEASES THE AIRCRAFT TO LESSEE IN AN “AS IS” AND “WITH ALL FAULTS” CONDITION. LESSOR
MAKES NO WARRANTIES OR REPRESENTATIONS TO LESSEE, EITHER EXPRESS OR IMPLIED, AS TO:

	 	(A)	 	THE CONDITION, DESIGN, OPERATION, FITNESS FOR USE OR MERCHANTABILITY OF THE
AIRCRAFT;
	 
	 	(B)	 	THE FITNESS OF THE AIRCRAFT FOR ANY PARTICULAR PURPOSE OF LESSEE;
	 
	 	(C)	 	THE AIRWORTHINESS OF THE AIRCRAFT; OR
	 
	 	(D)	 	ANY OTHER MATTER WHATSOEVER, IT BEING EXPRESSLY AGREED BY THE PARTIES THAT ALL
RISKS RELATING TO OR ARISING FROM LESSEE’S USE AND OPERATION OF THE AIRCRAFT SHALL BE
BORNE AND ASSUMED SOLELY BY LESSEE.

	5.4	 	WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, LESSOR SHALL NOT BE LIABLE FOR ANY DEFECTS,
EITHER LATENT OR PATENT, IN THE AIRCRAFT NOR FOR ANY GENERAL, CONSEQUENTIAL OR INCIDENTAL
DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY DAMAGES FOR DIMINUTION OF MARKET VALUE, LOSS OF
USE OF THE AIRCRAFT, LOSS OF PROFITS OR FOR ANY INTERRUPTION IN LESSEE’S BUSINESS OCCASIONED
BY ITS INABILITY TO USE THE AIRCRAFT FOR ANY REASON WHATSOEVER. LESSOR SHALL NOT BE LIABLE
FOR ANY DAMAGES CLAIMED BY LESSEE OR ANY OTHER PERSON OR ENTITY UPON THE THEORIES OF
NEGLIGENCE OR STRICT LIABILITY IN TORT.
	 
	5.5	 	In no event shall any defect in, or unfitness of, the Aircraft relieve Lessee of its
obligation to pay rent or make any other payments required under this Lease, nor relieve
Lessee of any other obligation hereunder.

ARTICLE 6: OWNERSHIP AND INSPECTION OF AIRCRAFT

	6.1	 	Lessee acknowledges and agrees to each of the following:

3

 

	 	(A)	 	Ownership of and title to the Aircraft and all equipment installed therein and
accessions thereto shall vest in and remain with Lessor.
	 
	 	(B)	 	Lessee will make no claim nor assert any right to the Aircraft inconsistent
with Lessor’s ownership and title thereto.
	 
	 	(C)	 	If required by the FAA or if requested by Lessor, Lessee will cause the
Aircraft to have plainly, distinctly and permanently affixed to it at all times during
the Lease Term a statement (in size, form and location reasonably satisfactory to
Lessor) indicating that the Aircraft is owned by Lessor and, if applicable, financed by
a specifically-named third party.
	 
	 	(D)	 	Lessee will at all times keep the Aircraft free and clear from any and all
liens, claims, charges, encumbrances and legal processes and, at Lessee’s expense, will
protect and defend Lessor’s title to the Aircraft from and against all liens, claims,
charges, encumbrances and legal processes which may arise during the Lease Term, except
for liens, claims, charges, encumbrances and legal processes arising through Lessor.
	 
	 	(E)	 	Lessee will, whenever requested by Lessor during the Lease Term, execute and
deliver to Lessor any agreements, instruments and documents, in a form satisfactory to
Lessor, which may be necessary to fully consummate the various undertakings
contemplated herein and necessary for the protection of Lessor’s title to the Aircraft.
	 
	 	(F)	 	Lessee will allow Lessor to make reasonable periodic inspections of the
Aircraft.
	 
	 	(G)	 	Lessee will make reports in such form (consistent with standard industry
practice) and at such times as Lessor may reasonably require with regard to the
Aircraft, including, but not limited to, the use, operation, location and condition of
the Aircraft.

	6.2	 	Lessee understands and agrees that it will not acquire any right of beneficial ownership or
equity in the Aircraft by reason of the payment of any rentals hereunder or by virtue of any
other reason or legal theory. Lessee shall not have the right to register the Aircraft in
Lessee’s name with the FAA or any other governing authority, unless Lessor specifically agrees
in writing.
	 
	6.3	 	Lessee acknowledges that Lessor is the owner of the Aircraft and that Lessee holds the
Aircraft under lease from Lessor. Lessee covenants that it will, for income tax purposes,
treat the transactions contemplated hereby as a true lease and will not take any position on
its tax returns or in any other document or instrument relating thereto that is inconsistent
therewith other than, if required by generally accepted accounting principles, its financial
statements.

4

 

ARTICLE 7:  MAINTENANCE AND RECORDS

	7.1	 	Lessee shall, at its own expense and at all times during the Lease Term, maintain the
Aircraft and cause the Aircraft to remain currently certified and completely airworthy and in
good and safe operating order, repair and condition in accordance with the requirements of the
FAA and any other governmental authorities having jurisdiction therefor. Lessee, at its own
expense, shall also pay for all fuel, service, inspections, overhauls, replacements,
substitutions, improvements, storing, hangaring, maintenance and Airworthiness Directives
respecting the Aircraft and will permit all such required inspections, replacements,
substitutions, maintenance and repair work to be performed only at service facilities duly
licensed by the FAA, approved by the Manufacturer and acceptable to Lessor, and only by
appropriately licensed and currently certificated persons duly qualified to perform such work
as and when required thereby.
	 
	7.2	 	Lessee will operate the Aircraft in compliance with all FAR requirements set forth under
Title 14 of the Code of Federal Regulations, as well as any other applicable laws or
regulations.
	 
	7.3	 	Lessee will maintain the Aircraft in accordance with the Manufacturer’s operating, inspection
and maintenance manuals or Lessee’s FAA-approved maintenance and inspection program, and in
compliance with all applicable FAR requirements set forth under Title 14 of the Code of
Federal Regulations (hereinafter sometimes referred to as “Maintenance Program”).
	 
	7.4	 	Lessee shall prepare and maintain all records pertaining to the Aircraft during the Lease
Term in accordance with all applicable rules and regulations of the FAA and any other
governmental authorities. Such records shall be prepared and maintained in a commercially
prudent manner and shall provide a complete historical record of the Aircraft, including, but
not limited to, the use, operation, servicing and maintenance of the Aircraft, and all
Airworthiness Directives and Mandatory Service Bulletins that may be issued relative to the
Aircraft. A complete record of the number of Manufacturer’s defined and specified cycles
completed by the Aircraft shall also be maintained in appropriate Log Books or other permanent
records for the Aircraft.
	 
	7.5	 	All records which Lessee is required to prepare, maintain and retain under this Article shall
be available for examination and copying by Lessor at all reasonable times. Lessee agrees to
furnish any information in respect to the location and use of the Aircraft that Lessor may
reasonably request. Lessee shall deliver, free of charge, all such records in complete and
current form to Lessor upon return of the Aircraft to Lessor.
	 
	7.6	 	Lessee, at its sole expense, may make alterations, modifications, additions or improvements
to the Aircraft, provided that:

	 	(A)	 	any such alteration, modification, addition or improvement has been approved by
the Manufacturer of the Aircraft and/or required by the FAA;

5

 

	 	(B)	 	any such alteration, modification, addition or improvement does not eliminate
any of the Aircraft’s capabilities, nor reduce its value or utility, nor impair its
warranty, airworthiness, certifications, safety or performance; and
	 
	 	(C)	 	Lessee receives Lessor’s prior written approval.

	 	 	Unless otherwise agreed in writing, all such alterations, modifications, additions and
improvements to the Aircraft shall become a part of the Aircraft leased hereunder. Lessee
shall promptly notify Lessor in writing of the nature of any contemplated alteration,
modification, addition or improvement, and if Lessor’s written approval is given, Lessee
shall subsequently notify Lessor upon the completion of the alteration, modification,
addition or improvement that such work has been accomplished and all required entries in the
Log Books or other permanent records of the Aircraft have been made and certified by
FAA-authorized Inspectors.
	 
	7.7	 	Lessee acknowledges that it is a party to that certain Standard Aero Engine Pooling and
Services Agreement between Lessee, Lessor, and Standard Aero Limited, dated June 10, 2003, but
effective as of February 1, 2003 (“Standard Aero Agreement”). Lessee shall keep the Standard
Aero Agreement in full force and effect at all times during the Lease Term.

ARTICLE 8:  USE AND OPERATION OF AIRCRAFT

	8.1	 	Lessee warrants that the Aircraft will be used only for lawful purposes in the normal course
of Lessee’s business. Lessee’s use and operation of the Aircraft is restricted to the areas
of operation authorized in Lessee’s FAA-approved operations specifications. Lessee will not
use or operate the Aircraft in any geographic area for which Lessee has not obtained and is
maintaining, in full force and effect, the insurance coverage required under this Lease.
Additionally, Lessee must obtain and carry adequate insurance coverage protecting the Aircraft
against confiscation, war risks and allied perils for any operations outside of the United
States of America and/or Canada.
	 
	8.2	 	During the Lease Term, Lessee shall hold and maintain in good standing a current and valid
operating certificate in conformity with FAR Parts 121, and/or 135, as such FARs may be
applicable to Lessee’s usage and operation of the Aircraft. Lessee agrees to use and operate
the Aircraft only in full compliance with all applicable FAR requirements and in accordance
with the terms, conditions and provisions of all insurance policies required under this Lease.
	 
	8.3	 	During the Lease Term, Lessee will abide by and conform to all applicable laws, ordinances,
orders, rules and regulations, whether federal, state, municipal, foreign or otherwise, now
existing or hereafter enacted (including, without limitation, those now or hereafter
promulgated by the FAA and any other governmental agency having jurisdiction over the
Aircraft), which control or in any way affect the possession, maintenance, condition,
operations, use or airworthiness of the Aircraft, or the use of any premises or facilities
occupied by the Aircraft.

6

 

	8.4	 	Lessee will not load, use, operate, maintain, service, repair, hangar or store the Aircraft
negligently, abusively, improperly or in violation of this Lease or so as to void or adversely
affect any insurance covering the Aircraft. Lessee will keep the Aircraft adequately
protected at all times when not in use.

ARTICLE 9:  INSURANCE

	9.1	 	Lessee will, at all times and at its sole expense, obtain and carry the types and amounts of
insurance coverage specified below (to the extent the same are commercially available to
airline operators):

	 	(A)	 	“All Risk” type hull insurance on the Aircraft, subject to the physical damage
deductible both In—Flight and Not In—Flight, including ingestion and foreign object
damage, and in amounts not less than the value stated in Exhibit “B” (“Stipulated
Value”) attached hereto. All policies of insurance carried in accordance with this
subsection (A) will provide that the insurance proceeds from any loss involving the
Aircraft will be jointly payable to Lessor and Lessee. The terms and conditions of
such hull all risks insurance shall not provide for any payment by Lessee in the form
of a deductible in an amount greater than U.S. $25,000.00.
	 
	 	(B)	 	Aviation Liability insurance including but not limited to Aircraft Liability,
passenger liability, bodily injury liability and property damage liability insurance,
products/completed operations liability, personal injury liability, premises liability,
passenger baggage liability, including such additional liability insurance as is
necessary to cover Lessee’s incidental use and operation of the Aircraft, with limits
no less than U.S. $50,000,000.00 combined single limit per occurrence. Such insurance
will not favor Lessee or any other insured as against Lessor, its officers, agents,
servants, employees, successors or assigns as to priority of application of insurance
proceeds in satisfaction of claims against more than one insured.
	 
	 	(C)	 	Hull War and Allied Perils coverage for the amount of the Stipulated Value
(including coverage for confiscation by any government, including the government of
registration) of the Aircraft and spare engines or parts whilst detached and replaced
or attached to another aircraft, and Liability War and Allied Perils coverage (form AVN
52E) in the amount of U.S. $50,000.000.00, or if the FAA offers such War and Allied
Perils insurance coverage which affords to Lessor equal to or better coverage and
amounts as required by form AVN52E, Lessee may carry such War and Allied Perils
coverage under an FAA insurance policy.
	 
	 	(D)	 	Insurance on the Aircraft’s engines and parts, which covers said engines or
parts when they are not installed on the Aircraft or another aircraft, under a contract
of all risks property insurance for an amount which will at no time shall be less than
the replacement cost of said engines or parts, the terms and conditions of which

7

 

	 	 	 	do not provide for any payment by Lessee in the form of a deductible in an amount
greater than U.S. $25,000.00.

	 	 	All insurance policies maintained by Lessee in accordance with subsections (A) through (D)
above will also comply with each of the following requirements:

	 	(1)	 	name Lessor and Lessee as loss payee with respect to the insurance maintained
in accordance with the provisions of subsections (A), (C) and (D) and as additional
insured as respects operations of the named insured and as their interest may appear,
with respect to the insurance maintained in accordance with the provisions of
subsections (B) and (D);
	 
	 	(2)	 	be in the kind and form satisfactory to Lessor and issued by insurers of
recognized responsibility which are satisfactory to Lessor;
	 
	 	(3)	 	with regard to the insurance coverage required, be primary without right of
contribution from any other insurance which is carried by Lessor with respect to its
interest in the Aircraft;
	 
	 	(4)	 	waive any right of subrogation of Lessee and its insurers against Lessor to the
same extent the Lessee has waived its rights of recovery under the terms of this
agreement;
	 
	 	(5)	 	provide that Lessor shall have no obligation or liability for premiums,
commissions, assessments or calls in connection with such insurance policies;
	 
	 	(6)	 	provide that if such insurance is canceled by insurers or Lessee for any reason
whatsoever, or any substantial change is made in policy terms, conditions or coverage
adverse to the interests of Lessor, or the policy is allowed to lapse for nonpayment of
premium, such cancellation, change or lapse will not be effective as to Lessor until
thirty (30) days (seven [7] days or such shorter period as is customary with respect to
War Risks coverages / ten [10] days in the event of cancellation due to nonpayment of
premium) after Lessee’s insurers send written notice of the cancellation, change or
lapse in policy terms, conditions or coverage to Lessor via certified mail or facsimile
transmission;
	 
	 	(7)	 	provide that in respect of the interest of Lessor in such policies, the
insurance will not be invalidated by any action or inaction of Lessee and will insure
Lessor regardless of any breach or violation by Lessee of any warranty, declaration or
condition contained in such policies; and
	 
	 	(8)	 	provide that the geographic limits, if any, contained in such policy will
include at a minimum all territories over which Lessee will operate the Aircraft.
	 
	 	(9)	 	Lessee will furnish to Lessor evidence of the aforesaid insurance coverage in
certificate form. Evidence of renewal of each policy will thereafter be furnished to
Lessor in certificate form. Lessee covenants that it will not do any act or

8

 

	 	 	 	voluntarily suffer or permit any act to be done whereby any insurance required
hereunder will or may be suspended, impaired or defeated.
	 
	 	(10)	 	Coverage is not provided for the Additional Insured with respect to claims
arising out of their legal liability as manufacturer, repairer, supplier or servicing
agent and shall not operate to prejudice Underwriter’s rights of recourse against the
Additional Insured as manufacturer, repairer, supplier or servicing agent where such
rights of recourse would have existed had this not been affected under this (Lessee’s)
policy.

	9.2	 	Lessee’s use of the Aircraft may be terminated by Lessor, at any time and without notice, in
the event Lessee fails to maintain in force any of the insurance coverage required under this
Article.
	 
	9.3	 	Lessee warrants that the Aircraft shall be operated:

	 	(A)	 	only by duly licensed pilot operators currently certificated as qualified to
operate the Aircraft in compliance with the laws of the United States or any other
state or local governmental authorities having jurisdiction therefor; and
	 
	 	(B)	 	in accordance with the provisions of the insurance policy or policies issued in
connection therewith.

ARTICLE 10:  LOSS OR DAMAGE

	10.1	 	Lessee assumes and shall bear the entire risk of loss, destruction, theft, taking of or
damage to the Aircraft from any cause whatsoever. Lessee shall promptly report to Lessor in
writing any loss, destruction, theft, taking of or damage to the Aircraft, and shall promptly
provide to Lessor copies of all reports or documents made or given by Lessee relating thereto.
	 
	10.2	 	In the event the Aircraft shall have been lost, destroyed, stolen or damaged to such an
extent that the Manufacturer determines that repair thereof is impractical, or in the event of
a total taking of the Aircraft (which term includes, without limitation, seizure, hijacking,
condemnation, requisition or taking of possession of the Aircraft by any governmental
authority, domestic or foreign, or any agency or political subdivision thereof), Lessee shall
pay to Lessor or its Assignee within thirty (30) days after such loss, destruction, theft,
taking or damage, a sum equal to the Stipulated Value stated in Exhibit “B” hereto, plus an
amount equal to any accrued rental payments due hereunder, plus all other sums payable under
this Lease (including, but not limited to, the sums payable under any indemnity provisions).
The occurrence of any of the above-identified incidents shall be deemed as a “Total Loss” of
the Aircraft. Any nonpayment of insurance proceeds that may be due hereunder will not excuse
Lessee from its obligation to pay Lessor as set forth hereinabove.
	 
	10.3	 	To the extent that the loss, destruction, theft, taking or damage described in Article 10.2
is covered by insurance, all proceeds of such insurance shall be first applied by Lessor
toward satisfaction of the payments required to be made to Lessor or its Assignee

9

 

	 	 	pursuant to Article 10.2. Upon Lessor’s receipt of payment in full as required under
Article 10.2, this Lease shall terminate (if Lessee is not then in default under this Lease)
and Lessee shall become entitled to:

	 	(A)	 	all remaining proceeds of insurance pertaining to the Aircraft, and all rights
and ownership in the insurance policies required under this Lease, except as to such
policies insuring or covering liabilities of Lessor or any other person named as
insured or covered thereby, caused by or arising out of or in connection with any
events, matters or circumstances antedating or existing at the time of such
termination; and
	 
	 	(B)	 	all of Lessor’s rights, title, duties and interest with regard to the Aircraft
as they exist at the time of such termination, without warranty, express or implied, as
to any matter whatsoever.

	 	 	LESSEE’S ACQUISITION OF TITLE TO THE AIRCRAFT SHALL BE “AS IS, WHERE IS, AND WITH ALL
FAULTS”. FOLLOWING TRANSFER OF TITLE TO LESSEE, LESSOR SHALL NOT THEREAFTER BE LIABLE FOR
ANY GENERAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY DAMAGES
FOR LOSS OF USE, LOSS OF PROFITS OR DIMINUTION OF MARKET VALUE, OR ANY DAMAGES CLAIMED BY THE
LESSEE OR ANY OTHER PERSON OR ENTITY UPON THE THEORIES OF NEGLIGENCE OR STRICT LIABILITY IN
TORT.
	 
	 	 	Following Lessor’s transfer of title to Lessee, Lessee shall release, indemnify and hold
Lessor harmless, together with its insurers, directors, officers, agents, employees and
stockholders, from any and all claims, suits, litigations, judgments, costs, expenses,
losses or damage whatsoever, including reasonable attorneys’ fees and expenses, arising out
of or relating to any deaths, personal injury, sickness or condition, loss or destruction of
property, and/or any loss of the time, or use of the Aircraft or other equipment, or loss of
time of employment of persons in respect to any claimed loss, injury or damage for which
liability might be imposed under any of the laws of any jurisdiction by reason of an
accident involving the Aircraft.
	 
	 	 	Lessor and Lessee agree to deliver such duly executed instruments as may be required to
accomplish the foregoing.
	 
	10.4	 	If the Aircraft or any part or component thereof shall suffer any loss, destruction, theft,
taking or damage, other than as set forth in Article 10.2 above, Lessee shall at its own
expense promptly restore the Aircraft to a good and safe and airworthy condition, repair and
working order, including, without limitation, replacing all equipment, parts or components of
the Aircraft as shall have been lost, destroyed, stolen, taken or damaged with Manufacturer
approved equipment, parts or components of equal or greater value. After any such repairs or
replacements are completed, Lessee shall certify to Lessor that the Aircraft has been
inspected by an FAA-authorized Inspector and has in effect a current FAA Certificate of
Airworthiness. All insurance proceeds paid to Lessor as a result of such damage, pursuant to
9.1(A) and (B) hereof shall be available to reimburse

10

 

	 	 	Lessee for the reasonable costs of all required repairs, provided that no “Event of Default”
(reference Article 13) has occurred and is continuing.
	 
	10.5	 	No loss, destruction, theft, taking of or damage to the Aircraft, however occurring and
whether or not the same is covered by insurance, shall relieve Lessee of any of its
obligations under this Lease.

ARTICLE 11:  GENERAL INDEMNITIES

	11.1	 	Lessee shall exonerate and indemnify Lessor, its officers, employees, representatives,
insurers, agents and assigns, against and hold them harmless from, any and all claims,
actions, suits, proceedings, losses, judgments, damages and liabilities (including reasonable
attorneys’ fees) and all other costs and expenses in connection therewith or incident thereto,
for death or injury to any person (other than Lessor or Lessor’s employees) whomsoever, and
for any loss or damage to, or destruction of, any property whatsoever, caused by or arising
out of, or in any way connected with or resulting from:

	 	(A)	 	the Aircraft or any property or persons aboard or connected with the Aircraft;
	 
	 	(B)	 	the manufacture, acquisition, selection, delivery, possession, use, condition,
operation, storage, maintenance, servicing, repair or return of the Aircraft, at any
time during the Lease Term; and
	 
	 	(C)	 	strict liability in tort relating to the Aircraft, provided that Lessee shall
have no obligation to indemnify Lessor for any acts or omissions on the part of the
manufacturer of the Aircraft or any of its parts or components.

	11.2	 	LESSEE HEREBY AGREES TO RELEASE, PROTECT, INDEMNIFY AND HOLD LESSOR HARMLESS, TOGETHER WITH
ITS OFFICERS, EMPLOYEES, REPRESENTATIVES, AGENTS AND INSURERS, FROM AND AGAINST ANY AND ALL
CLAIMS, ACTIONS, SUITS, PROCEEDINGS, JUDGMENTS, COSTS, FINES, EXPENSES, LOSSES, DAMAGES AND
LIABILITIES WHICH IN ANY MANNER RELATE TO OR ARISE OUT OF THE INJURY OR DEATH OF ANY PERSON,
OR DAMAGE TO OR LOSS OF PROPERTY, OCCASIONED BY OR RESULTING FROM (A) ANY ACCIDENT OR FAILURE
OF THE AIRCRAFT OR ANY OF ITS EQUIPMENT WHICH OCCURS AT ANY TIME DURING WHICH LESSEE OWNS
AND/OR OPERATES THE AIRCRAFT, (B) ANY ACTS OR OMISSIONS OF LESSEE IN THE INSPECTION, REPAIR,
MAINTENANCE, SERVICING OR OPERATION OF THE AIRCRAFT, AND (C) ANY ACTS OR OMISSIONS OF LESSEE
IN FULFILLING THE WARRANTIES AND COVENANTS STIPULATED IN THIS AGREEMENT.
	 
	11.3	 	With respect to causes of action accruing during the Lease Term, the indemnities specified
above in Article 11.1 shall remain in full force and effect notwithstanding the expiration or
other termination of this Lease.

11

 

ARTICLE 12:  LICENSES, CERTIFICATES, PERMITS, FEES AND TAXES

	12.1	 	Lessee shall, at its sole expense, procure and maintain in effect all licenses, certificates,
permits and other approvals and consents required by any municipal, state, federal or foreign
laws and regulations in connection with the possession, use and operation of the Aircraft.
Lessee shall pay promptly when due all registration, title, license, landing, toll, permit and
certificate fees, all assessments, sales, use, gross receipts, property and any and all other
taxes or other charges of whatever nature (hereinafter collectively called “impositions”) and
by whomever payable (except federal or state taxes levied on Lessor’s net income), now or
hereafter imposed by any state, federal, local or foreign governmental authority upon any use,
ownership, rental, shipment, transportation, delivery or operation of the Aircraft or upon or
measured by any payments due hereunder.
	 
	12.2	 	If any such impositions and any penalties or interest thereon shall be paid by Lessor or if
Lessor is required to collect and pay any thereof, Lessee shall, upon demand by Lessor,
promptly reimburse Lessor for such sums and for any expenses incurred therein, and any
	 
	 	 	such payment made by Lessor for Lessee shall not relieve Lessee from its obligation to pay
all such impositions as provided hereunder.

ARTICLE 13: DEFAULT AND REMEDIES

	13.1	 	An “Event of Default” shall be deemed to occur if:

	 	(A)	 	Lessee fails to pay when due any monthly rental payment or any other sum
payable to Lessor under this Lease or under any other lease or promissory note between
Lessor and Lessee, if such failure continues for a period of five (5) days after Lessor
has given Lessee notice of such failure;
	 
	 	(B)	 	An “Event of Default” should occur under the Third Restructuring Agreement or
any lease agreement, purchase agreement, promissory note and/or security agreement
between Lessor and Lessee, whether currently in existence or executed subsequent
hereto, if such failure continues for a period of thirty (30) days after Lessor has
given Lessee notice of such failure;
	 
	 	(C)	 	Lessee fails to perform or observe any material covenant, warranty, condition,
obligation or agreement to be performed, honored or observed by it hereunder, if such
failure continues for a period of seven (7) days after Lessor has given Lessee notice
of such failure;
	 
	 	(D)	 	any carrier of insurance cancels or reduces coverage under any policy of
insurance required hereunder or determines that Lessee is an uninsurable risk at
standard rates;
	 
	 	(E)	 	Lessor determines that any material warranty or representation of Lessee herein
was untrue when made;

12

 

	 	(F)	 	Lessee’s Air Carrier Certificate (reference Article 1.3) is revoked or
suspended for any reason;
	 
	 	(G)	 	Lessee ceases doing business as a going concern, makes an assignment for the
benefit of creditors, admits in writing its inability to pay its debts as they become
due or such fact is determined in a judicial proceeding, files a voluntary petition in
bankruptcy, has a petition in bankruptcy filed against it, is adjudicated a bankrupt or
an insolvent, files a petition seeking for itself any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar arrangement under any
present or future statute, law or regulation, or files an answer admitting the material
allegations of a petition filed against it in any such proceedings, consents to or
acquiesces in the appointment of a trustee, receiver or liquidator of it or of all or
any substantial part of its assets or properties, or if it or the holders of its Common
Stock shall take any action contemplating its dissolution or liquidation (but excluding
a filing of technical insolvency with the Internal Revenue Service for income
recognition purposes);
	 
	 	(H)	 	Lessee attempts to sell, transfer, sublet, encumber or part with possession of
the Aircraft or any item thereof in breach of this Lease; or
	 
	 	(I)	 	Lessee is in default under any obligation in excess of $1,000,000 which it has
for the payment of money to any person or entity.
	 
	 	(1)	 	Lessee fails to comply with the terms of the Standard Aero Agreement.

	13.2	 	Upon the occurrence of any Event of Default, Lessor may elect to declare this Lease to be in
default and immediately take one or more of the following actions:

	 	(A)	 	proceed by appropriate court action or actions either at law or in equity to
enforce performance by Lessee of the applicable covenants and terms of this Lease or to
recover from Lessee any and all damages or expenses which Lessor shall have sustained
by reason of Lessee’s default under this Lease or on account of Lessor’s enforcement of
its remedies hereunder;
	 
	 	(B)	 	terminate Lessee’s rights under this Lease, whereupon Lessee, at Lessee’s sole
cost and expense, shall cause the Aircraft to be delivered to Lessor in accordance with
Article 14;
	 
	 	(C)	 	declare all rentals and other sums payable by Lessee under this Lease
immediately due and payable;
	 
	 	(D)	 	take possession of the Aircraft, whereupon Lessee’s right to the possession of
the Aircraft shall terminate.

	13.3	 	In the event of any such repossession as provided above in Article 13.2, Lessor may either
lease the Aircraft or any portion thereof on such terms and to such persons as Lessor may
elect, or sell the Aircraft or any portion thereof at public or private sale, following
commercially reasonable notice of sale, but without presence of the Aircraft at

13

 

	 	 	the place of sale. If the Aircraft is leased, sold or otherwise disposed of pursuant to
this Article 13.3, Lessee shall be liable to Lessor for and Lessor may recover from Lessee,
as liquidated damages for the breach of this Lease and not as a penalty, the amount by which
the proceeds of such lease, sale or disposition (less the expense of retaking, repairing,
refurbishing, storing, servicing, flight testing, demonstrating, leasing, selling or
otherwise disposing of the Aircraft) is less than the sum of:

	 	(A)	 	all due and unpaid monthly rental payments for the Aircraft through the date of
repossession;
	 
	 	(B)	 	the applicable fair market value of the Aircraft (in the event that the
Aircraft is sold pursuant to this Article 13.3);
	 
	 	(C)	 	an amount equal to all accrued impositions and other amounts payable hereunder
by Lessee with respect to the Aircraft;
	 
	 	(D)	 	all costs, expenses, losses and damages incurred or sustained by Lessor by
reason of Lessee’s default hereunder; and
	 
	 	(E)	 	interest at one and one-half percent (1-1/2%) per month on each of the
foregoing and on all sums not paid when due under any provision of this Lease. If on
the date of such termination or repossession the Aircraft has been lost, destroyed,
stolen, taken or damaged, or is subject to any levy, seizure, assignment, imposition,
application for sale for or by any creditor or governmental agency, Lessee shall also
be liable to Lessor for the amounts specified in Article 10, less the amount of any
insurance recovery received by Lessor in connection therewith. Lessee hereby waives
any and all rights to notice and to a judicial hearing with respect to the repossession
of the Aircraft by Lessor in the event of a default hereunder by Lessee. Lessee also
expressly waives any damages occasioned by Lessor’s taking of possession of the
Aircraft as provided above in Article 13.2.

	13.4	 	No right or remedy conferred upon or reserved to Lessor by this Lease shall be exclusive of
any other right or remedy herein or provided by law or at equity. All rights and remedies
conferred upon Lessor by this Lease or by law shall be cumulative and in addition to every
other right and remedy available.
	 
	13.5	 	In the event of any Event of Default, Lessee will pay to Lessor a reasonable sum for
attorneys’ fees and such costs and expenses as shall have been incurred by Lessor in the
enforcement of any right or privilege hereunder.

ARTICLE 14:  RETURN OF AIRCRAFT

	14.1	 	Unless the Aircraft has been sold to Lessee, upon the expiration or termination of this
Lease, Lessee will, unless a loss or damage to the Aircraft has occurred, at its expense: (i)
redeliver the Aircraft and Aircraft Documents to Lessor at the Lessor’s facility in Wichita,
Kansas or such other location agreeable to Lessor; (ii) cause the Aircraft and all records,
logs, technical data and mandatory manuals relating to the maintenance and operation of the
Aircraft to satisfy and comply with all the provisions of Article 14.2; (iii)

14

 

	 	 	cause the Aircraft to be free and clear of all security interests and liens (other than
liens caused by Lessor); and (iv) cause the following items relating to the Aircraft to be
delivered to Lessor:

	 	(A)	 	All records of maintenance, preventative maintenance, alterations and major
repairs;
	 
	 	(B)	 	All airframe and engine logbooks endorsed for current total time and cycles for
the airframe, total time and cycles for each engine and an entry for total time and
cycles since overhaul and hot section inspection for each engine. The airframe logbook
must include all appropriate endorsements (i.e. maintenance releases) verifying that
the avionics have been periodically tested and inspected in accordance with all
applicable provisions of the FAR requirements and Lessee’s Maintenance Program;
	 
	 	(C)	 	A current written summary certified by an FAA-licensed mechanic listing the
status of all applicable Airworthiness Directives, Mandatory Service Bulletins, and
Service Bulletins for the airframe, engines and appliances;
	 
	 	(D)	 	A written summary certified by an FAA-licensed mechanic of the current status
of life limited and/or overhauled components for the airframe, engines (in accordance
with the Manufacturer’s recommended intervals), engine accessories and appliances as
defined in the most current revision(s) of all Manufacturers’ maintenance publications
applicable to the Aircraft.

	 	 	In addition, Lessee must provide the following documentation and data for each component
having an overhaul or inspection requirement of life limit, which components are identified
in pertinent sections of Lessee’s Maintenance Program applicable to the Aircraft as follows:
(i) an airworthiness release certificate or maintenance release tag, (ii) the vendor work
order or copy thereof verifying the details of each component overhaul, and (iii) an
appropriate record certifying the date and expended time status of the component when
installed (i.e. copy of log or inspection squawk card). The three items identified in the
preceding sentence must be properly organized and provided on board the Aircraft at the time
it is returned to Lessor in order for the Aircraft to satisfy the requirements of this
Article 14.
	 
	 	 	To the extent not covered above, Lessee will also deliver to Lessor all work cards,
computerized maintenance history, component serviceability tags, STCs, 337s, NDT
radiographs, maintenance manuals, structural repair manuals, flight manuals, and crew
manuals in an acceptable media, including CD-ROM. All manuals (other than those purchased
independently by Lessee) or other documents delivered to Lessor which are subject to
periodic revision will be fully up-to-date and current to the latest revision standard of
any particular manual or document. If the Aircraft is on a computerized maintenance
program, such program will be up-to-date in accordance with the Manufacturer’s recommended
maintenance schedule and fully assignable to Lessor at redelivery.

15

 

	 	 	Lessee acknowledges that each of the items described above must be provided to Lessor upon
return of the Aircraft, regardless of whether Lessee has conducted its periodic inspections
of the Aircraft pursuant to pertinent sections of Lessee’s Maintenance Program or in
accordance with an inspection program approved by the FAA. Lessee hereby expressly waives
its right of objection to the right of Lessor under this Agreement to demand redelivery of
the Aircraft and logbooks upon an Event of Default being notified by Lessor to Lessee.
	 
	14.2	 	Upon the expiration or termination of this Lease, the Aircraft will comply with each of the
following provisions at the time it is delivered to Lessor:

	 	(A)	 	General Conditions

	 	(1)	 	The Aircraft will be in an airworthy and fully serviceable
condition with all systems fully functional and operational. The Aircraft will
have no airworthiness or safety of flight discrepancies, and no carry-over or
deferred defects of any kind in existence.
	 
	 	(2)	 	The Aircraft will comply with the Manufacturer’s original
specifications and have installed the full complement of engines and other
equipment, parts, accessories and loose equipment as installed in the Aircraft
at delivery to Lessee. Any aircraft system added or modified by supplemental
modification action will also be fully operational and functional.
	 
	 	(3)	 	The Aircraft will have a current FAA Certificate of
Airworthiness. In this regard, the Certificate of Airworthiness will be
currently validated by appropriate entries duly executed by currently licensed
FAA inspectors in all applicable logbooks for the Aircraft. Lessee will be
solely responsible for all costs and expenses incurred in obtaining the
Certificate of Airworthiness, including but not limited to, all aircraft
inspections required for issuance of the Certificate of Airworthiness.
	 
	 	(4)	 	The Aircraft will be current and in complete compliance with
the Manufacturer’s recommended Maintenance Program (ref. FAR 91.409M{31),
specifically including all applicable Manufacturer’s recommended maintenance
schedules for the airframe, engines, propellers and avionics. The Aircraft
will be in complete compliance with all requirements of the FAA. All of the
Aircraft’s maintenance will be signed off in accordance with the regulations of
the FAA and the above designated inspection program.
	 
	 	(5)	 	All of the Aircraft’s airframe, engine (including hot section
inspections), propeller and avionic component overhaul periods, mandatory life
limitations and other specifications will be complied with pursuant to the
applicable Manufacturer’s recommended maintenance schedule. All life limited
items listed in the applicable Manufacturers Maintenance Manuals

16

 

	 	 	 	will have fifty percent (50%) life remaining at the time of return
acceptance. If Lessor originally delivered the Aircraft to Lessee with any
life limited items having less than fifty percent (50%) of life remaining,
then, with respect to such items, Lessee shall only be obligated to return
the limited life items with life limit remaining at least equivalent to when
received. For any life limited component having less than fifty percent
(50%) life remaining, Lessee will either (a) replace such life limited
component with a life limited component of like kind which meets the fifty
percent (50%) criteria, or (b) pay to Lessor an amount equal to the product
of (i) fifty percent (50%), less the percentage which equals the amount of
the remaining life of the life limited component at the time the Aircraft is
returned, multiplied by (ii) Lessor’s overhaul cost for such life limited
component as if the same had to be overhauled at the time of return. Lessee
will provide evidence of the above to Lessor, such evidence to include
“yellow” tags, release certificates, certificates of conformance or other
such documentation verifying the origin and condition of components at
installation. A serial number verification of all components will be
performed. In the event documentation does not exist to verify the origin
and condition of components at installation, Lessee will overhaul and/or
replace all such components with components in a zero-time or fully
overhauled condition.
	 
	 	(6)	 	All Airworthiness Directives, Mandatory Service Bulletins and
other mandatory orders issued by the FAA or the Manufacturer affecting the
Aircraft’s airframe, engines, propellers and avionics which exist at the time
of return will be fully complied with and satisfied.
	 
	 	(7)	 	A complete One through Six Phase Inspection (specifically
including engine hot section inspections) will have been performed on the
Aircraft by an FAA authorized CRS (or person holding a current FAA Inspector
Authorization) acceptable to Lessor immediately preceding redelivery in the
manner stipulated in the Manufacturer’s recommended Maintenance Program with
all discrepancies discovered corrected by Lessee.
	 
	 	(8)	 	The Aircraft will have installed all applicable vendors’ and
manufacturer’s service bulletin kits received free of charge by Lessee that are
appropriate for the Aircraft. If these optional service bulletin kits have not
been installed, they must be returned with the Aircraft.
	 
	 	(9)	 	The Aircraft will have all signs and decals clean, secure and
legible.
	 
	 	(10)	 	The Standard Aero Agreement and all of Lessee’s obligations
thereunder will be current in all respects and fully assignable to Lessor.
Lessee’s compliance with the Standard Aero Agreement shall be deemed to satisfy
the engine return conditions otherwise applicable above.

	 	(B)	 	Fuselage, Windows and Doors (exclusive of manufacturer’s defects)

17

 

	 	(1)	 	The fuselage will be free of major dents and abrasions, and
patches with loose, pulled or missing rivets.
	 
	 	(2)	 	The windshield will be free of cracks. Any delamination must
be approved by Raytheon Airline Aviation Services’ Customer Support.
Windshield heat must be operational.
	 
	 	(3)	 	The cabin side windows will be free of delamination, warpage,
blemishes, crazing and will be properly sealed.
	 
	 	(4)	 	The doors will be free moving, correctly rigged and be fitted
with serviceable seals.
	 
	 	(5)	 	Any and all structural repairs on the Aircraft will be
permanent in nature and fully in accordance with the Manufacturer’s guidelines
and will be approved where necessary by FAA documentation. Where possible, new
repairs to the fuselage skin panels will be executed by means of “flush or
insert” repair methods.

	 	(C)	 	Wings and Empennage

	 	(1)	 	The leading edges will be free from damage, normal wear and
tear excepted.
	 
	 	(2)	 	The wings will be free of fuel leaks.

	 	(D)	 	Interior

	 	(1)	 	The ceiling, sidewalls and bulkhead panels will be clean and
free of cracks and stains.
	 
	 	(2)	 	All seat covers will be in good condition, clean and free of
stains and meet applicable FAR fire regulations (burn certifications), normal
wear and tear excepted.
	 
	 	(3)	 	All seats will be serviceable, in good condition and recovered
as necessary, normal wear and tear excepted.
	 
	 	(4)	 	All emergency equipment having a calendar life will have a
minimum of one (1) year or 100% of its total approved life, whichever is less,
remaining.

	 	(E)	 	Cockpit

	 	(1)	 	The fairing panels will be free of stains and cracks, will be
clean, secure and repaired as necessary.
	 
	 	(2)	 	Floor coverings will be clean and effectively sealed.

18

 

	 	(3)	 	The seat covers will be in good condition, clean and free of
stains and will conform to applicable FAR fire regulations (bum
certifications), normal wear and tear excepted,
	 
	 	(4)	 	Seats will be serviceable, in good condition and will be
recovered as necessary, i.e. if condition of the seat covers exposes seat
cushions.

	 	(F)	 	Cargo Compartments

	 	(1)	 	All panels and cargo nets will be in good condition.

	 	(G)	 	Landing Gear

	 	(1)	 	The landing gear and wheel wells will be clean, free of leaks
and repaired as necessary.

	 	(H)	 	Corrosion

	 	(1)	 	The Aircraft will have been inspected and treated with respect
to corrosion as defined in FAA Advisory Circular AC43-4A, Corrosion Control for
Aircraft. Reference 1900C Structural Repair Manual for repairs.

	 	(I)	 	Miscellaneous

	 	(1)	 	The Aircraft will not have incurred any reduction of the
specified fatigue life or require additional maintenance inspections over and
above that determined by the Aircraft Manufacturer.
	 
	 	(2)	 	The Weight and Balance Schedule and Equipment List will be
current and represent the Aircraft’s current configuration at the time of
return.
	 
	 	(3)	 	The Aircraft will not be accepted, flight tested or undergo
inspection by Lessor with a rental engine(s) installed.
	 
	 	(4)	 	Physical redelivery condition of the Aircraft relating to
paint, seat covers, carpet, tires and brakes shall be subject to normal wear
and tear conditions.

	14.3	 	Immediately prior to redelivering the Aircraft, Lessee will make the Aircraft available to
Lessor for inspection (“Final Inspection”) in order to verify that the condition of the
Aircraft complies with this Lease. All costs in connection with the Final Inspection (except
for Lessor’s own inspectors’ salaries, travel expenses and other out-of-pocket expenses) will
be for the account of Lessee. The Final Inspection will be long enough to permit Lessor to:

	 	(A)	 	Inspect the aircraft, engine and propeller logbooks, and maintenance records;
	 
	 	(B)	 	Inspect the Aircraft and uninstalled parts;

19

 

	 	(C)	 	Inspect each engine, including without limitation, a full horoscope and a full
maintenance manual power assurance engine test run; and
	 
	 	(D)	 	Observe a one-hour demonstration flight (with Lessor’s representatives as
onboard observers).

	14.4	 	To the extent that, at the time of Final Inspection, the condition of the Aircraft or an
Engine does not comply with this Lease, Lessee will at its option:

	 	(A)	 	Immediately rectify the non-compliance and to the extent the non-compliance
extends beyond the expiration of the Lease, the Lease Term will be automatically
extended and this Lease will remain in force until the non-compliance has been
rectified; or
	 
	 	(B)	 	Redeliver the Aircraft to Lessor and indemnify Lessor, and provide to Lessor’s
satisfaction, cash as security for the indemnity, against the cost of putting the
Aircraft or Engine (as the case may be) into the condition required by this Lease.

	14.5	 	Provided Lessee has complied with its obligations under this Lease, following redelivery of
the Aircraft by Lessee to Lessor, Lessor will deliver to Lessee an acknowledgment confirming
that Lessee has redelivered the Aircraft to Lessor in accordance with the Lease. Lessor
reserves the right to claim restitution for hidden damages (exclusive of Manufacturer’s
defects) which were caused by or which should have been reasonably discovered by Lessee due to
its operation of maintenance of the Aircraft, but which could not be detected during the
Aircraft return inspection process noted in Articles 14.3 and 14.4.
	 
	14.6	 	Lessee’s Maintenance Program

	 	(A)	 	Prior to the expiration or termination of the Lease and upon Lessor’s request,
Lessee will provide Lessor or its agent reasonable access to Lessee’s Maintenance
Program and the logbooks and maintenance records in order to facilitate the Aircraft’s
integration into any subsequent operator’s fleet;
	 
	 	(B)	 	Lessee will, if requested by Lessor to do so, upon return of the Aircraft,
deliver to Lessor a certified, true, current and complete copy of Lessee’s Maintenance
Program, provided that Lessor shall not disclose any such program to a third party
without Lessee’s prior written consent or a court order directing such disclosure.

ARTICLE 15:  ASSIGNMENTS AND BENEFITS

	15.1	 	This Lease may be assigned by Lessor, at its sole discretion and at any time, either in whole
or in part, upon written notice to Lessee.
	 
	15.2	 	This Lease may be assigned by Lessee, either in whole or in part, but only with the prior
written consent of Lessor, given or withheld in Lessor’s sole discretion.

20

 

	15.3	 	The Aircraft leased hereunder may be subleased or rented by Lessee to another party, but only
with the prior written consent of Lessor, given or withheld in Lessor’s sole discretion.
	 
	15.4	 	Notwithstanding any assignment, sublease or rental by Lessee pursuant to Article 15.2 or 15.3
hereof, Lessee shall continue to be primarily responsible hereunder, both jointly and
severally, with any consented to assignee, sublessee or renter.
	 
	15.5	 	This Lease shall be binding upon and inure to the benefit of the parties hereto and their
permitted successors and assigns.
	 
	15.6	 	Subject to Lessee’s rights of possession of the Aircraft as long as no Event of Default has
occurred and is continuing, Lessor may subject the Aircraft to the security interests of a
lender to Lessor or otherwise subordinate the Lease to any financing agreement, and may
provide the benefit of this Lease to such lender as security for Lessor’s obligations to its
lenders. Lessee agrees to cooperate in all reasonable respects with Lessor and Lessor’s
lender with regard to such subordination, security interest or other financing agreement, and
to execute such documentation as may reasonably be requested by Lessor or by Lessor’s lender
in connection therewith. Without limiting the foregoing, Lessee agrees upon the request of
Lessor, from time to time, to execute a written certificate certifying the following points:

	 	(A)	 	that the Lease has not been modified and remains in full force and effect; or,
if the Lease has been modified, what the modifications are and that the Lease as so
modified remains in full force and effect;
	 
	 	(B)	 	stating the date to which the monthly rental payments and other charges have
been paid;
	 
	 	(C)	 	acknowledging that to the knowledge of Lessee there are no uncured defaults on
the part of Lessor under the Lease; or, alternatively, specifying any such default
claimed by Lessee; and
	 
	 	(D)	 	acknowledging that Lessee has no claims against Lessor under the Lease; or,
alternatively, specifying any such claims that Lessee has against Lessor.

ARTICLE 16:  NOTICES

	16.1	 	Any formal notice required or allowed hereunder shall be deemed sufficiently given if
personally delivered or sent by certified mail (return receipt requested) or telefacsimile to
the party to whom said notice is to be given. Notices sent by certified mail, return receipt
requested, shall be deemed to be served seventy-two (72) hours after the date said notice is
postmarked to the addressee, postage prepaid. Notices sent by telefacsimile shall be deemed
to have been served on the day sent.
	 
	16.2	 	Until changed by written notice given by either party to the other, the addresses of the
parties shall be as follows:

21

 

	 	(A)	 	The Lessor:
	 
	 	 	 	Raytheon Aircraft Credit Corporation

Attn: President

101 South Webb Road, Suite 300

Wichita, Kansas 67207

Telefacsimile: (316) 676-6975
	 
	 	(B)	 	The Lessee:
	 
	 	 	 	Gulfstream International Airlines, Inc.

Attn: President

1815 Griffin Road, Suite 400

Dania, Florida 33004

Telefacsimile: (954) 266-3030

	16.3	 	The designated addresses of both parties must be located within the United States of America.

ARTICLE 17: LESSEE’S REPRESENTATIONS, WARRANTIES AND COVENANTS

	17.1	 	Lessee represents, warrants and covenants to Lessor each of the following:

	 	(A)	 	Lessee is a corporation duly organized, validly existing and in good standing
under the laws of the state in which it is incorporated, and is duly qualified and
authorized to do business wherever the nature of its activities or the ownership of its
properties require such qualification and authorization.
	 
	 	(B)	 	Lessee has the full power, authority and legal right to execute, deliver and
perform the terms of this Lease. This Lease has been duly authorized by all necessary
corporate action of Lessee and constitutes a valid and binding obligation of Lessee,
enforceable in accordance with its terms.
	 
	 	(C)	 	There is no law, nor any charter, bylaw or preference share provision of
Lessee, nor any provision in any existing mortgage, indenture, contract or agreement
binding upon Lessee, which would be contravened by the execution, delivery or
performance by Lessee of this Lease.
	 
	 	(D)	 	No consent of the shareholders or of any trustee or holder of any indebtedness
of Lessee is or will be required as a condition to the validity of this Lease or, if
required, all such consents have been duly obtained and certified copies thereof shall
be delivered to Lessor.
	 
	 	(E)	 	No registration with, or approval of, any governmental agency or commission is
necessary for the execution, delivery or performance by Lessee of the terms of this
Lease or for the validity hereunder; or, if required, all such registrations and
approvals have been duly made or obtained and certified copies thereof shall be
delivered to Lessor.

22

 

	 	(F)	 	There are no outstanding or unpaid judgments against Lessee, with the exception
of those already disclosed to Lessor, and there is no action or proceeding pending or,
insofar as Lessee knows, threatened against Lessee before any Court or administrative
agency which in Lessee’s reasonable opinion might have any material adverse effect on
the business, condition or operations of Lessee except as disclosed by Lessee to Lessor
at time of execution of this Lease.
	 
	 	(G)	 	Lessee is the holder of Air Carrier Certificate No. GUUA428B issued pursuant to
14 CFR §121/135, or other such certificates that may be deemed to replace the
aforementioned certificate by the FAA.

	17.2	 	Throughout the Lease Term, Lessee shall furnish to Lessor such financial reports and
information concerning Lessee and its business operations as Lessor may from time to time
request.

ARTICLE 18:  DISPUTES

	18.1	 	In the event any dispute, claim or controversy arising under or in connection with this Lease
results in litigation between Lessor and Lessee, then the successful party in the litigation
shall be entitled to recover its reasonable attorneys’ fees in prosecuting and/or defending
the litigation.

ARTICLE 19:  MISCELLANEOUS

	19.1	 	This Lease may not be amended except in writing signed by duly authorized representatives of
both parties.
	 
	19.2	 	Any forbearance or indulgence by Lessor hereunder shall not constitute a waiver of any of
Lessor’s rights or remedies.
	 
	19.3	 	Any provision of this Lease which is unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition; however, such unenforceability
in any such jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.
	 
	19.4	 	Time is of the essence with respect to all of the provisions of this Lease.
	 
	19.5	 	The headings to the various Articles herein are for convenience only and do not define or
limit the terms thereof.
	 
	19.6	 	If Lessee fails to pay or perform any obligations payable or performable under this Lease,
Lessor may, at its option, cure such failure at Lessee’s expense.
	 
	19.7	 	THIS LEASE IS MADE AND ENTERED INTO IN THE STATE OF KANSAS AND SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF KANSAS. THE PARTIES AGREE THAT ANY
LEGAL PROCEEDING BASED UPON THE PROVISIONS OF THIS LEASE SHALL BE BROUGHT IN EITHER THE UNITED
STATES DISTRICT COURT FOR THE

23

 

	 	 	DISTRICT OF KANSAS AT WICHITA, KANSAS, OR IN THE STATE DISTRICT COURT (EIGHTEENTH JUDICIAL
DISTRICT) OF SEDGWICK COUNTY, KANSAS, TO THE EXCLUSION OF ALL OTHER COURTS. THE PARTIES
CONSENT AND AGREE TO BE SUBJECT TO THE JURISDICTION OF THE AFORESAID COURTS IN ANY SUCH
PROCEEDINGS.
	 
	19.8	 	This Lease constitutes the entire agreement between and among the parties with respect to the
subject matter hereof. All Exhibits attached to this Lease are hereby incorporated as an
integral part of this Lease. There are no verbal understandings, agreements, representations
or warranties between the parties which are not expressly set forth herein. This Lease
supersedes and merges all prior agreements and understandings between the parties, both
written and oral.
	 
	19.9	 	This Lease and the Exhibits attached hereto are confidential between Lessor and Lessee. The
terms and conditions set forth herein may not be disclosed in any fashion, either in whole or
in part, to any third party (excluding governmental authorities and the disclosing party’s
legal counsel, financial institution and accountants) unless the party desiring to make such
disclosure first obtains the express written approval of the other party.

ARTICLE 20:  EARLY TERMINATION OPTION

	20.1	 	Subject to the terms of the Third Restructuring Agreement, at any time after September 1,
2003 until November 30, 2004, so long as no Event of Default then exists and is continuing,
Lessee, at its option and without penalty, may elect to return the Aircraft to Lessor as one
(1) of the three (3) Returned Aircraft referred to in the Third Restructuring Agreement.
Lessee shall continue to be liable for all payments on and other obligations with respect to
the Aircraft until returned to Lessor with Lessee having satisfied all necessary return
conditions (as defined in Article 14 of this Lease). Lessee shall notify Lessor in writing at
least thirty (30) days in advance of its intent to return the Aircraft. Such notice shall
specify the Aircraft (airframe, aircraft engines and propellers by serial number) to be
returned and the prospective return date.
	 
	20.2	 	Lessee’s exercise of this return option is subject to the following conditions: (A) Lessee
must not be in default or breach of this Lease or any other lease, note or obligation owed to
Lessor, and (B) the Aircraft shall be returned to the Lessor in accordance with the provisions
of Article 14 of the Lease Agreement.

ARTICLE 21:  OPTION TO PURCHASE

	21.1	 	Subject to the terms of the Third Restructuring Agreement, the parties agree that Lessee may,
at its option, purchase the Aircraft during the term of the Lease Term for the higher of (i)
the Stipulated Loss Value (indicated in Exhibit “B” attached hereto) at the time Lessee
chooses to exercise such option, and (ii) the Fair Market Value of the Aircraft. The term
“Fair Market Value” as used herein shall mean the value of the Aircraft as determined by an
independent third party appraiser to be selected consensually by Lessor and Lessee. In the
event Lessor and Lessee cannot agree on such party, Lessor and Lessee shall each select an
appraiser and then such appraisers shall together select a

24

 

	 	 	mutually acceptable third party appraiser who
shall determine the fair market value of the
Aircraft at issue based on the then current
retail value reflecting an “arms length” sale.

ARTICLE 22: GROUNDING OF AIRCRAFT

	22.1	 	Subject to the terms of the Third Restructuring Agreement, during either Lessee’s calendar
year 2003 or calendar year 2004, after and upon delivery of thirty (30) days’ prior written
notice to Lessor, Lessee may elect to ground the Aircraft as one (1) of eight (8) Grounded
Aircraft referred to in the Third Restructuring Agreement during the months of September,
October and November. During such period, Lessee will not be obligated for monthly rental
payments on the Aircraft. Lessee shall be prohibited from using the grounded Aircraft in
scheduled services, provided that in the event that another of Lessee’s aircraft is down for
maintenance during the time the Aircraft is grounded, Lessee may, with the written consent of
Lessor, which consent shall not be unreasonably withheld, utilize the grounded Aircraft in the
place of the aircraft that is down for maintenance at a usage fee of $150.00 per flight hour.
Lessee may substitute the Grounded Aircraft with another aircraft subject to providing at
least a 30-day notice of such substitution. Lessee shall keep the Aircraft on its operating
certificate and shall continue to insure the Aircraft during the period grounded.
Additionally, during the period grounded, the engines related to the Aircraft will be
maintained pursuant to the terms of the Standard Aero Agreement and Lessee shall perform the
minimum maintenance program set forth in the Third Restructuring Agreement, at its own cost.

IN WITNESS OF the mutual promises, covenants and agreements set forth above, the parties have
caused their duly authorized officers to execute this Lease at Wichita, Kansas, on the date and
year indicated below.

	 	 	 	 	 	 	 
	 	 	RAYTHEON AIRCRAFT CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Andrew Matthews
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Andrew Matthews, President	 	 
	 
	 	 	 	 	 	 
	 	 	Date of Execution: 8/8/03	 	 
	 
	 	 	 	 	 	 
	 	 	“Lessor”
	 	 
	 
	 	 	 	 	 	 
	 	 	GULFSTREAM INTERNATIONAL AIRLINES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	David Hackett	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	David Hackett, President	 	 
	 
	 	 	 	 	 	 
	 	 	Date of Execution: 8/8/03	 	 
	 
	 	 	 	 	 	 
	 	 	“Lessee”
	 	 

25

 

Exhibit A

Schedule of Rental Payments

     This Schedule of Rental Payments is based upon an Eighty-four (84) month operating
lease. The “Rental Commencement Date” shall be defined as ___, 2003. The first
(1st) Monthly Rental Payment hereunder shall be due and payable by Lessee to Lessor in
arrears Thirty (30) days following the Rental Commencement Date. The Monthly Rental
Payments due thereafter shall be due and payable in arrears to Lessor on the same day
of each subsequent calendar month.

	 	 	 
	Month During Lease Term	 	Amount of Monthly Payment
	[*]
	 	 

26

 

Exhibit B

Stipulated Aircraft Value

[*]

27

 

EXHIBIT C

Certificate of Final Acceptance

This Acceptance Certificate is delivered on the date set out below by Gulfstream International
Airlines, Inc. (Lessee”) to Raytheon Aircraft Credit Corporation (“Lessor”) pursuant to the
Operating Lease Agreement dated               between Lessor and Lessee (the “Lease”). The capitalized terms
used in this Certificate shall have the meaning given to such terms in the Lease.

1. DETAILS OF THE ACCEPTANCE

Lessee hereby confirms to Lessor that Lessee has, at ___o’clock on this ___day of
___, at Dania, Florida, accepted the following, in the condition required and in
accordance with the provisions of the Lease:

	 	 	 	 	 
	(a)

	 	Aircraft:
	 	Beechcraft 1900D Airliner
Serial Number: UE-137

FAA Registration No.: N81533
	 
	 	 	 	 
	(b)

	 	Engines:

Engine Serial Numbers:
	 	Pratt & Whitney PT6A-67D

PCE-114355 PCE-PS0029
	 
	 	 	 	 
	(c)

	 	Propellers:
	 	Hartzell, Model HC-B4MP-3A
	 

	 	Propeller Serial Numbers:
	 	HJ791 HJ691
	 
	 	 	 	 
	(d)	 	Loose Equipment Check List and Manuals & Records:
	 	 	As per list signed by Lessor and Lessee and attached hereto
	 
	 	 	 	 
	(e)

	 	Status:	 	 
	 

	 	Aircraft Total Time:
	 	                    
	 
	 	 	 	 
	 

	 	Flight Hour Meter:
	 	                    
	 
	 	 	 	 
	 

	 	Total Cycles:
	 	                    

	2.	 	CONFIRMATION

Lessee confirms to Lessor that as at the time indicated above, being the Delivery:

	(a)	 	the representations and warranties contained in the Lease are hereby repeated;
	 
	(b)	 	the aircraft is insured as required by the Lease; and
	 
	(c)	 	Lessee’s authorized technical experts have thoroughly examined and inspected the Aircraft to
ensure the aircraft conforms to Lessee’s requirements. The Aircraft is in accordance with the
specifications of the Lease and satisfactory in all respects.

 

 

	3.	 	IN WITNESS WHEREOF
	 
	 	 	Lessee has, by its duly authorized representative, executed this Certificate on the date in
Paragraph 1 above.

	 	 	 	 	 	 	 	 	 
	GULFSTREAM INTERNATIONAL AIRLINES, INC.	 	 	 	 
	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

AMENDMENT NO.    1    TO AIRCRAFT LEASE AGREEMENT

COVERING RAYTHEON AIRCRAFT COMPANY 1900D

WITH REGISTRATION N81533  (AIRCRAFT)

(SUBSTITUTION AGREEMENT)

     This AMENDMENT NO.   1   to AIRCRAFT LEASE AGREEMENT made and entered into this
       23rd        day of          May         , 2005, by and between
    RAYTHEON AIRCRAFT CREDIT CORPORATION        (“Lessor”) and     GULFSTREAM
INTERNATIONAL AIRLINES, INC.    (“Lessee”).

WITNESSETH:

     WHEREAS, Lessor and Lessee entered into a Lease Agreement dated   August 7, 2003  ,
which was recorded by the Federal Aviation Administration (the “FAA”) on    November 6,
2003   , as Conveyance No. T073659.

     WHEREAS, the parties desire to amend the Lease Agreement to substitute the description of the
equipment as described on Exhibit “B” attached hereto (the “New Equipment”) for purchase under the
Lease Agreement and to terminate the Lease Agreement with respect to the Original Equipment
(Exhibit “A”).

     NOW THEREFORE, in consideration of the premises and other good and valuable consideration, receipt
of which is hereby acknowledged, Lessor and Lessee hereby agree as follows:

     1. The Lease Agreement are hereby amended so as to terminate that portion of the Lease
Agreement with respect to the Original Equipment (Exhibit “A”) and to substitute the New Equipment
(Exhibit “B”), effective upon the recordation of the Amendment pursuant to Title 49 of the United
States Code.

     2. The parties hereby terminate the Lease Agreement with respect to the Original Equipment
(Exhibit “A”), effective upon the recordation of this Amendment pursuant to Title 49 of the United
States Code.

     3. Lessor delivers to Lessee, and Lessee accepts from Lessor under the Lease Agreement the New
Equipment (Exhibit “B”).

     4. Lessee hereby confirms to Lessor that the Lessee has accepted the New Equipment (Exhibit
“B”) for the purpose hereof and of the Lease Agreement.

     5. Except as amended hereby, the Lease Agreement are and shall remain in full force and effect
and unchanged.

     6. This amendment shall bind and inure to the benefit of the Lessor and Lessee and their
respective successors and assigns.

 

 

     IN WITNESS WHEREOF, the Lessor and Lessee have executed and sealed this with the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	RAYTHEON AIRCRAFT CREDIT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 	 	“Lessor”
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew A. Mathews	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Andrew A. Mathews	 	 
	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	GULFSTREAM INTERNATIONAL AIRLINES, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	“Lessee”
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Dave Hackett	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Dave Hackett	 	 
	 	 	Title: President	 	 

 

 

EXHIBIT “A’

ORIGINAL EQUIPMENT

	 	1.	 	One Pratt & Whitney engine, PT6A-67D, bearing Manufacturer’s Serial No.
PCE-114355 (which is capable of producing 750 or more rated takeoff horsepower).

 

 

EXHIBIT “B”

NEW EQUIPMENT

	 	1.	 	One Pratt & Whitney Engine, Model No. PT6A-67D bearing Manufacturer’s Serial
No. PCE-PS0121 (which is capable of producing 750 or more rated takeoff horsepower).

 

 

			
	 	 	 
	[RAYTHEON LOGO]
	 	[RAYTHEON ADDRESS]

Tuesday, August 02, 2005

VIA FACSIMILE

Mr. David Hackett

President

Gulfstream International Airlines

1815 Griffin Road, Suite 400

Dania, FL 33004

RE: Lease Letter Amendment

Dear David:

As previously discussed, this letter is to document Raytheon Aircraft Credit Corporation’s (“RACC”)
agreement to amend the lease agreements dated August 3, 2003 to provide a temporary rental
reduction given the current jet fuel price environment.

Specifically, RACC agrees to amend the leases as follows:

	1.	 	[*]
	 
	2.	 	[*]

Should you have any questions regarding the above issues, please fell free to contact me at
316.676.0639. Otherwise, please indicate your acceptance of these terms and conditions by signing
below and returning it to RACC prior to August 15, 2005.

 

 

			
	 	 	 
	Gulfstream International Airlines
	 	Page 2 of 2
	Lease Letter Amendment	 	 
	Tuesday, August 02, 2005                                     
	 	                                                           

Best Regards,

/s/ Andrew A. Matews

Andrew A. Mathews

President

Raytheon Aircraft Credit Corporation

	 	 	 	 	 
	Accepted by Gulfstream International Airlines:	 	 
	 
	 	 	 	 
	By:

	 	/s/ David A. Hackett
	 	 
	 

	 	 	 	 
	Title: President	 	 
	Date: August 4, 2005

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]