Document:

Exhibit
10.14

 

Flagstone Reinsurance Holdings Limited

23 Church Street Suite

Hamilton Bermuda HM11

 

Tuesday 20th December, 2005

 

Dear Sir,

 

I am pleased to enclose
Longtail Aviation’s Standard Terms and Conditions, for your review and
acceptance prior to your next flight booking. These Terms and Conditions form
the contract between you and Longtail Aviation.

 

I am pleased to confirm
that you are a member of our Preferred Clients group. The benefits of this
membership include:

 

1)                        Lower
hourly aircraft rates and overnight charges for aircraft and crew

 

2)                        Lower
minimum daily utilization of aircraft

 

3)                        Credit
line (you have been granted a limit of $300,000) which allows you to pay for
flights promptly after completion, rather than in advance.

 

4)                        Quarterly
billing for most incidental charges on an as-incurred basis (with a reduced 15%
administrative fee)

 

5)                        Preference
in booking versus the general public (although obviously we cannot displace
confirmed bookings.)

 

6)                        Assistance
with booking and negotiating other charter services when our airplanes are not
available for your trip.

 

7)                        Reduced
trip cancellation fees. Specifically, and notwithstanding the Terms and Conditions,
your cancellation fees will be as follows:

 

a)                        If
notice is received more than 7 days before the scheduled departure time $1,000;

 

b)                       If
notice is received less than 7 days but more than 48 hours before the scheduled
departure time 15% of the Charter Price:

 

Longtail
Aviation Ltd.

Suite 113, MPA Hangar, Southside, St. David’s DD02, Bermuda

Mailing Address: Suite 224, 12 Church Street, Hamilton HM 11, Bermuda

Tel: (441) 293-5971 Fax: (441) 293-5972 INTERNET:
www.longtailaviation.bm

 

 

Longtail
Aviation

 

c)                        If
notice is received less than 48 hours before the scheduled departure time 25%
of the Charter Price or our actual costs if greater:

 

The result of the above privileges should be a considerable savings for
you, as well as improved administrative ease since you will have one bill per
trip and four quarterly bills for miscellaneous items. We will ensure you
remain in the Preferred Clients group so long as you fly 50 hours per year with
Longtail.

 

Two points I would like
to specifically call to your attention:

 

1)                         Estimated
vs. Guaranteed price: Our normal practice is to provide an estimated price,
which we call the Charter Quote, before the trip is booked. Unless the
quotation sheet is marked and signed by us as a “Guaranteed Price”, the actual
amount you ultimately pay (the Charter Price) will be based on actual flight
times and miscellaneous charges, as computed from the Standard Charges sheet
provided as an attachment to this letter.

 

Thus the ultimate price
you pay may turn out to be more or less than the Charter Quote, depending on
wind speeds, air traffic delays, etc.

 

If you prefer to work
from a Guaranteed Price, please let us know and we will prepare and send you a
Charter Price instead of a Charter Quote, which means you will know your exact
cost before you travel. This will cost on average 5-10% more than operating via
an estimated price.

 

Credit Terms: You have
been approved for a credit limit of $300,000. We would appreciate it if you
would pay for flights within ten days of being billed.

 

We look forward to welcoming you on Longtail’s fleet in the near
future. Please indicate your acceptance of the Standard Terms and Conditions by
signing and dating a copy of this letter, and returning it with your signed
Charter Quote.

 

 

	
  Yours Sincerely,

  
	
   

  
	
  /s/ Roger
  Brydon

  	
   

  
	
  Roger Brydon

  
	
  Head
  of Ground Operations

  

 

2

 

I have received and agree to the Longtail Aviation Standard Terms and
Conditions

 

 

	
  Date:

  	
   

  
	
   

  	
   

  
	
  /s/ David Brown

  	
   

  
	
   

  	
   

  
	
  Client

  	
   

  

 

The following persons are authorized to quote, confirm and amend
instructions related to charters on our behalf:

 

 

	
  Mark Bryne

  	
   

  	
  /s/ Mark Bryne

  	
   

  
	
  Name

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  David Brown

  	
   

  	
  /s/ David Brown

  	
   

  
	
  Name

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Antoinette Simmons

  	
   

  	
  /s/ Antoinette Simmons

  	
   

  
	
  Name

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Stacy Brant

  	
   

  	
  /s/ Stacy Brant

  	
   

  
	
  Name

  	
   

  	
  Signature

  	
   

  

 

3Exhibit
10.15

 

Dated as of the 24th
day of July, 2006

 

 

BETWEEN:

 

IAL Leasing Ltd.

 

and

 

 

Flagstone Westwind
Holdings Limited

 

 

 

AIRCRAFT
PURCHASE AGREEMENT

 

 

 

Conyers Dill &
Pearman

Barristers & Attorneys

Hamilton, Bermuda

 

 

AIRCRAFT
PURCHASE AGREEMENT

 

DATA
SHEET

 

	
  Manufacturer:

  	
  Israeli Aircraft Industries

  
	
   

  	
   

  
	
  Make and Model:

  	
  Westwind II

  
	
   

  	
   

  
	
  Serial No.:

  	
  337

  
	
   

  	
   

  
	
  Registration Mark:

  	
  VP-BLT

  
	
   

  	
   

  
	
  Make and Model of Engines:
  Honeywell - TFE731-3-1G

  
	
   

  
	
  Engine Serial No(s).:

  	
  No 1 – S/N 77419

  No 2 – S/N 77422

  
	
   

  	
   

  
	
  APU Serial Number:

  	
  N/A

  
	
   

  	
   

  
	
   

  	
   

  
	
  Seller:

  	
   

  	
  IAL Leasing Ltd. a
  company incorporated under the laws of the Islands of Bermuda

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Flagstone Westwind Holdings
  Limited, a company incorporated under the laws of the
  Islands of Bermuda.

  
				

 

2

 

THIS AIRCRAFT PURCHASE AGREEMENT (the
“Agreement”) is made as of the 24th day of July, 2006

 

BETWEEN:

 

(1)                                  IAL
Leasing Ltd., a company incorporated under the laws of Bermuda with its
registered office located at Crawford House, 23 Church Street, Hamilton HM 11,
Bermuda (the “Seller”); and

 

(2)                                  Flagstone
Westwind Holdings Limited, a company incorporated under the laws of Bermuda
with its registered office located at Crawford House, 23 Church Street,
Hamilton HM 11, Bermuda (the “Buyer”),

 

WHEREAS The Buyer
desires to purchase from the Seller and the Seller desires to sell to the Buyer
the Aircraft in accordance with the terms and conditions contained here,

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained,

 

IT IS HEREBY AGREED as
follows:

 

1.                                      INTERPRETATION

 

In this Agreement, unless the context otherwise requires,

 

1.1.                              references
to clauses are references to clauses hereof; references to sub-clauses are,
unless otherwise stated, references to sub-clauses of the clause in which the
reference appears;

 

1.2.                              references
to the singular shall include the plural and vice versa and references to the
masculine shall include the feminine and/or neuter and vice versa; and

 

1.3.                              references
to persons shall include companies, partnerships, associations and bodies of
persons, whether incorporated or unincorporated.

 

2.                                      SUBJECT
MATTER OF SALE

 

Subject to the provisions of and in accordance with
the terms and conditions of this Agreement, Seller agrees to sell and to
deliver to Buyer and Buyer agrees to buy and take delivery from Seller all of
Seller’s right, title and interest in the following aircraft:

 

	
  Manufacturer:

  	
   

  	
  Israeli Aircraft Industries

  
	
  Make and Model:

  	
   

  	
  Westwind II

  
	
  Serial No.:

  	
   

  	
  337

  
	
  Registration
  Mark:

  	
   

  	
  VP-BLT

  
	
  Make and Model
  of Engines

  	
   

  	
  Honeywell – TFE731-3-1G

  

 

3

 

	
  Engine Serial
  No(s).:

  	
   

  	
  No 1 – S/N 77419

  
	
   

  	
   

  	
  No 2 – S/N 77422

  
	
   

  	
   

  	
   

  
	
  APU Serial
  Number:

  	
   

  	
  N/A

  

 

including, without limitation, (a) all accessories,
appliances, appurtenances, avionics, components, furnishings, instruments,
parts, loose equipment, or other equipment or property installed on, attached
to or temporarily removed from said aircraft and engines including, without
limitation, as set forth in the “Specification” attached hereto as EXHIBIT A,
(b) the maintenance records, manuals, logbooks, checklists, documents, data and
records necessary to the operation of the Aircraft set forth in EXHIBIT B (the
“Aircraft Documents”) (all of the foregoing items are referred to herein,
collectively, as the “Aircraft”)

 

3.                                      PURCHASE
PRICE

 

All prices, amounts and payments referred to herein
shall be in United States Dollars. The total purchase price for the Aircraft
shall be one million eight hundred twenty five thousand dollars payable at the
Closing pursuant to this Agreement.

 

4.                                      CLOSING

 

4.1.                              The
consummation of the transaction contemplated by this Agreement (the “Closing”)
shall consist of and include the completion by the parties of each and every
delivery, condition or requirement under Section 5 of this Agreement.

 

4.2.                              The
Closing shall occur once the aircraft has entered international air space
between longitude 70W at any time between 29th and 31st
July, 2006 (the “Delivery Location” and such date being the “Closing Date”).
The closing will be confirmed -by a satellite telephone call between the
parties when the aircraft is in flight in the region indicated.

 

4.3.                              If
the Closing cannot occur subject to 4.2 the Parties will a) cooperate to ensure
the earliest closing reasonably possible without incurring taxes upon either
party, and b) act reasonably to ensure that both parties have an economic
outcome identical to that which would have occurred had the closing occurred
subject to 4.2.

 

4.4.                              All
of the Seller’s right, title and interest in the Aircraft shall be deemed to
pass to Buyer once the Aircraft enters the Delivery Location on the Delivery
Date.

 

4.5.                              Upon
conclusion of the Closing, Seller shall deliver to Buyer a receipt of Funds in the
form as the parties may agree.

 

5.                                      DELIVERIES

 

5.1.1.                     On or before
the Closing Date, Buyer shall: (i) deliver to the an executed Aircraft

 

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Delivery Receipt in the form and substance of EXHIBIT
C attached hereto (hereinafter, the “Aircraft Delivery Receipt”); and (ii)
deliver to Seller or its designee a duplicate of Aircraft Delivery Receipt at
the Delivery Location;

 

5.2.                              On
the Closing Date, Seller shall deliver the Aircraft to Buyer or its designee at
the Delivery Location in accordance with Section 4.2: (i) in an airworthy
condition with a valid Certificate of Airworthiness issued by the Bermuda
Department of Civil Aviation; (ii) with good and marketable title, free and
clear of all liens and encumbrances (as warranted under Section 6.1.1 and
EXHIBIT D); (iii) with all Aircraft Documents, including true, complete
continuous and up-to-date log books, maintenance manuals and flight manuals;
and (iv) with the maintenance current according to the factory-recommended
program, including mandatory portions of all airworthiness directives and
mandatory service bulletins that have been issued with respect to the Aircraft
with due dates on or prior to the Closing Date and all outstanding deferred
maintenance items accomplished.

 

5.3.                              Upon
Closing at the Delivery Location, subject to clause 29, all delivery conditions
set forth in Section 5.2 shall be extinguished and of no further force or
effect.

 

5.4.                              Except
as provided in Section 3 of this Agreement, Seller shall bear full risk of loss
with respect to the Aircraft (“Risk of Loss”), until Buyer accepts possession
of the Aircraft pursuant to Section 6.2 of this Agreement, whereupon and
thereafter the Risk of Loss shall be upon Buyer. In the event of loss of the Aircraft
prior to the Closing, Buyer shall be entitled to terminate this Agreement.

 

6.                                      REPRESENTATIONS,
WARRANTIES AND LIMITATIONS

 

6.1.                              Seller
hereby represents and warrants as of the date hereof and as of the Closing Date
as follows:

 

6.1.1.                     Seller is the
owner of the Aircraft and is authorized to convey title to the Aircraft, and
that execution and delivery of the Bill of Sale shall convey to Buyer good and
marketable title to the Aircraft, free and clear of any and all liens, claims
charges and encumbrances, including without limitation, any mortgage, pledge,
assignment, hypothecation, security interest, lease, title retention,
preferential right or trust arrangement, pooling, exchange, overhaul or repair
arrangement, or any other arrangement or agreement the effect of which is the
creation of a security interest in the Aircraft.

 

6.1.2.                     Seller has
paid all taxes, duties, penalties, charges, or invoices or statements with
respect to the Aircraft incurred on and before the Closing Date or, to the
extent that it has not, agrees to pay any and all of the foregoing when due.

 

6.1.3.                     Seller is a
company organized and validly existing under the laws of the Islands of
Bermuda, possessing perpetual existence, having the capacity to sue and be sued
in its own name, has full power, legal right and authority in all respects to
carry on its

 

5

 

business as currently conducted, and to execute,
deliver and perform and observe the provisions of this Agreement.

 

6.1.4.                     The execution,
delivery and performance by Seller of this Agreement have been duly authorized
by all necessary action of such legal entity on behalf of Seller and do not
conflict with or result in any breach of any of the terms or constitute a
default under any document, instrument, or agreement to which Seller is a
party.

 

6.1.5.                     This
Agreement constitutes the legal, valid and binding obligations of Seller
enforceable against Seller in accordance with its terms.

 

6.1.6.                     The entry
into and performance of this Agreement and the transactions contemplated
thereby do not and will not conflict with: (i) any law or regulation of any
official or judicial order applicable to Seller; (ii) the constitutional documents of Seller; or
(iii) any agreement or document to which Seller is a party or which is binding
upon Seller or its assets; nor result in the creation or imposition of any lien
on it or its assets pursuant to the provisions of any such agreement or
document.

 

6.1.7.                     All
authorizations, approvals, consents, licenses, exemptions, filings,
registrations, notarizations and other matters official or otherwise applicable
to Seller which are required or advisable in connection with the entry into,
performance, validity and enforceability of this Agreement, delivery of the Aircraft
hereunder or any of the transactions contemplated hereby shall be obtained or
effected by Seller prior to the date upon which they are required or it is
advisable that they be obtained or effected and are in full force and effect
and there has been no breach of any condition or restriction in or in
connection with any of the same.

 

6.1.8.                     No litigation
or other proceeding before any court, administrative agency or government body
is pending or to the best of Seller’s knowledge threatened against Seller, or
affecting or relating to the Aircraft, the outcome of which could affect the
validity of this Agreement or materially and adversely affect the rights,
benefits or interest of Seller conveyed hereunder.

 

6.1.9.                     It has not
taken any action nor have any other steps been taken or, to the best of
Seller’s knowledge, threatened against it for the winding-up or dissolution of
it or for the appointment of a liquidator, administrator, receiver,
administrative receiver, trustee or similar officer of it or all or any of its
revenues or assets nor has it sought any relief under any applicable insolvency
or bankruptcy law.

 

6.2.                              Buyer
hereby represents and warrants as of the date hereof and as of the Closing Date
as follows:

 

6.2.1.                     Buyer is a
company organized and validly existing under the laws of the Islands of
Bermuda, possessing perpetual existence as a legal entity, having the capacity
to sue and be sued in its own name, has full power, legal right and authority
in all respects

 

6

 

to carry on its business as currently conducted, and
to execute, deliver and perform and observe the provisions of this Agreement.

 

6.2.2.                     The
execution, delivery, and performance by Buyer of this Agreement have been duly
authorized by all necessary action of such legal entity on behalf of Buyer and
do not conflict with or result in any breach of any of the terms or constitute
a default under any document, instrument, or agreement to which Buyer is a
party.

 

6.2.3.                     This
Agreement constitutes the legal, valid, and binding obligations of Buyer
enforceable against Buyer in accordance with its terms.

 

6.2.4.                     The entry
into and performance of this Agreement and the transactions contemplated hereby
do not and will not conflict with (i) any law or regulation or any official or
judicial order applicable to Buyer, (ii) the constitutional documents of Buyer
or (iii) any agreement or document to which Buyer is a party or which is
binding upon Buyer or any of its assets; nor result in the creation or
imposition of any lien on it or its assets pursuant to the provisions of any
such agreement or document.

 

6.2.5.                     All
authorizations, approvals, consents, licenses, exemptions, filings,
registrations, notarizations and other matters, official or otherwise
applicable to Buyer which are required or advisable in connection with the
entry into, performance, validity and enforceability of this Agreement,
delivery of the Aircraft hereunder or any of the transactions contemplated
hereby shall be obtained or effected by Buyer prior to the date upon which they
are required or it is advisable that they be obtained or effected and are in
full force and effect and there has been no breach of any condition or
restriction in or in connection with any of the same.

 

6.2.6.                     No litigation
or other proceeding before any court, administrative agency or government body
is pending or, to the best of Buyer’s knowledge threatened against Buyer, the
outcome of which could materially and adversely affect the validity of this
Agreement.

 

6.2.7.                     It has not
taken any action nor have any other steps been taken or, to the best of Buyer’s
knowledge, threatened against it for the winding-up or dissolution of it or for
the appointment of a liquidator, administrator, receiver, administrative receiver,
trustee or similar officer of it or all or any of its revenues or assets nor
has it sought any relief under any applicable insolvency or bankruptcy law.

 

7.                                      DISCLAIMER AND INDEMNITY

 

7.1.                              THE
AIRCRAFT IS BEING SOLD HEREUNDER ON A COMPLETELY “AS IS” AND “WHERE IS” BASIS.
SELLER’S EXPRESS WARRANTIES AND REPRESENTATIONS SET FORTH IN THIS AGREEMENT AND
IN THE BILL OR SALE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER REPRESENTATIONS OR
WARRANTIES WHATSOEVER BY SELLER, EXPRESS OR IMPLIED OR ARISING BY OPERATION

 

7

 

OF LAW OR IN EQUITY, AND SELLER HAS NOT MADE, AND
BUYER HEREBY WAIVES, RELEASES, DISCLAIMS, AND RENOUNCES ALL EXPECTATION OF OR
RELIANCE UPON, ANY SUCH REPRESENTATIONS OR WARRANTIES WHATSOEVER, WITH RESPECT
TO THE AIRCRAFT OR ANY PART THEREOF, INCLUDING, WITHOUT LIMITATION, AS TO THE
AIRWORTHINESS, VALUE, CONDITION, DESIGN, MERCHANTABILITY OR FITNESS FOR USE FOR
A PARTICULAR PURPOSE OF THE AIRCRAFT, ANY OTHER REPRESENTATION OR WARRANTY
WHATSOEVER, EXPRESS OR IMPLIED (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR USE FOR ANY PARTICULAR PURPOSE OR
ANY IMPLIED WARRANTY ARISING FROM A COURSE OF PERFORMANCE OR DEALING OR USAGE
OF TRADE). BUYER HEREBY WAIVES ANY AND ALL RIGHTS, CLAIMS, AND REMEDIES OF
BUYER AGAINST SELLER, EXPRESS OR IMPLIED OR ARISING BY OPERATION OF LAW, IN
EQUITY OR OTHERWISE, ARISING FROM ANY SUCH REPRESENTATION OR WARRANTY OR FOR
ANY LIABILITY, CLAIM, OR REMEDY FOR LOSS OF OR DAMAGE TO THE AIRCRAFT, FOR LOSS
OF USE, REVENUE, OR PROFIT WITH RESPECT TO THE AIRCRAFT, OR FOR ANY OTHER
DIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES WHATSOEVER; PROVIDED THAT NOTHING
HEREIN SHALL BE DEEMED A WAIVER OR APPLY TO EXCLUDE ANY CLAIM BY BUYER FOR
DEATH OR PERSONAL INJURY CAUSED BY SELLER’S NEGLIGENCE TO THE EXTENT THAT SUCH
WAIVER OR EXCLUSION IS PROHIBITED BY STATUTE.

 

7.2.                              ANY
PRIOR REPRESENTATIONS OR STATEMENTS, WHETHER ORAL OR WRITTEN (INCLUDING AS SET
FORTH IN THE PURCHASE OFFER EXCEPT AS SPECIFICALLY REFERENCED IN THIS
AGREEMENT), MADE BY SELLER (OR ANY AGENT OR AFFILIATE THEREOF) AS TO THE
CONDITION (INCLUDING, WITHOUT LIMITATION, THE DAMAGE HISTORY OR CORROSION
HISTORY OF THE AIRCRAFT) OR FITNESS OF THE AIRCRAFT, OR ITS CAPABILITY OR
CAPACITY, ARE SUPERSEDED HEREBY AND ANY SUCH REPRESENTATIONS OR STATEMENTS NOT
SPECIFICALLY SET FORTH IN THIS AGREEMENT (INCLUDING THE BILL OF SALE) ARE
HEREBY WITHDRAWN BY SELLER (ON ITS OWN BEHALF AND ON BEHALF OF ANY OF ITS
AGENTS OR AFFILIATES WHICH MAY HAVE MADE ANY SUCH REPRESENTATION OR STATEMENT),
SHALL NOT BE APPLICABLE TO THE TRANSACTIONS CONTEMPLATED HEREBY AND ARE OF NO
FURTHER FORCE AND EFFECT, AND BUYER ACKNOWLEDGES THAT BUYER HAS NOT RELIED ON
AND IS NOT RELYING ON ANY SUCH REPRESENTATION OR STATEMENT.

 

7.3.                              Buyer
shall indemnify, reimburse and hold Seller and its respective officers,
contractors, employees and agents (each, a “Seller Indemnitee”, and
collectively, the “Seller Indemnitees”) harmless, from and against any and all
Liabilities (as hereinafter defined) with respect to the Aircraft. For the
purposes hereof “Liabilities” mean costs, expenses, fees (including legal fees,
navigation fees and landing charges), payments, demands, liabilities, claims,
actions, proceedings, penalties, fines, damages and judgments which may arise
in any

 

8

 

manner after Closing; out of or in relation to injury
to or death of any third party or loss or damage to any property of any third
party which may result from or arise in any manner out of or be attributable to
(a) the condition, ownership, purchase, leasing, possession, delivery,
disposition, use or operation of the Aircraft either in the air or on the
ground; or (b) any defect in the Aircraft arising from any maintenance,
service, repair, overhaul or testing of the Aircraft; provided, that Buyer’s
obligations under this Section to the Seller Indemnitees shall not extend to
any Liabilities caused by the gross negligence or wilful misconduct of any of
the Seller Indemnitees.

 

7.4.                              If, following
Closing, Buyer sells or leases the Aircraft and obtains from the transferee an
exculpatory or indemnity clause protecting Buyer, similar in scope to the
obligations of Buyer set forth in Sections 7 and 9 hereof, Buyer will use its
best efforts to include the same protection for Seller, unless the transferee
is an affiliate of Buyer, in which case Buyer shall obtain an undertaking from
the transferee to perform such obligations.

 

7.5.                              Seller
agrees to forever indemnify, defend and hold harmless the Buyer and its
successors and assigns from any and all liabilities, damages, losses, expenses,
demands, claims, suits or judgments by any third party or parties which arise
out of any breach by the Seller of the warranty as to title to the Aircraft as
set out in the Bill of Sale.

 

8.                                      THIRD
PARTY WARANTEES

 

8.1.                              To
the extent that any warranties from manufacturers, service providers, or
suppliers are still in effect with respect to the Aircraft (other than
warranties which by their terms are unassignable), such warranties and all
rights thereunder shall be irrevocably assigned to Buyer at the moment of
Closing and all documents evidencing same will be included among the Aircraft
Documents. Seller shall evidence such assignment by executing and delivering to
Buyer on the Closing Date an executed “Assignment of Warranties,” in such form
as the parties may agree.

 

8.2.                              If
any such warranties shall not be assignable or if consent to assignment shall
be refused, subject to receipt by Seller of an indemnity from Buyer in such
form as is satisfactory to Seller as to costs and liabilities to be incurred by
it and security for the same, Seller will take such action as Buyer may
reasonably request to enforce any such warranties.

 

9.                                      SALE
AND OTHER TAXES

 

9.1.                              Neither
the Purchase Price nor any other payments to be made by Buyer under this
Agreement includes the amount of any sales, use, retail, or other taxes that
may be imposed by governmental authorities as a result of the sale to or
purchase and/or use of the Aircraft by Buyer. Subject to the provisions of
Sections 9.3 and 9.4, below, Buyer shall be responsible for, shall indemnify
and hold harmless Seller against, and shall pay promptly when due any and all
taxes of any kind or nature whatsoever (including, without limitation, any and
all sales, use, and retail taxes), duties, or fees assessed or levied by any
federal, national, state, county, local, or other governmental authority which
may be imposed on Buyer, Seller or

 

9

 

both as a result of the sale and delivery of the
Aircraft to Buyer as contemplated hereby, or the registration, ownership or use
of the Aircraft by Buyer following the Closings except, solely for any taxes
attributed to Seller’s income or capital gains or taxes. In the event Seller
may be required by law to collect from Buyer any taxes or fees for which Buyer
is responsible, Buyer shall (subject
to the provisions of Sections 9.3 and 9.4 below) either provide Seller a
certificate evidencing an exemption from such taxes or fees, if applicable, or
shall remit such taxes or fees to Seller.

 

9.2.                              Seller
shall be responsible for, indemnify and hold Buyer harmless against, and has or
will pay when due, any and all personal property taxes, excise taxes, fuel taxes,
sales/use or similar taxes and any duties, fees or claims assessed or levied
against the Aircraft (including, without limitation, any item specified in
Section 9.1) prior to Closing.

 

9.3.                              If a
claim is made by any governmental authority against Seller with respect to any
tax of which Buyer is obligated to indemnify Seller under this Section 9,
Seller shall promptly notify Buyer of such claim and shall, subject to Section
9.4, below, use reasonable commercial efforts to cooperate with Buyer in the
contest of the claim, if permitted by applicable law; provided, however, that
the failure to give such notice or use such efforts will not prejudice or
otherwise affect any of the rights of Seller hereunder unless such failure
materially and adversely affects Buyer in exercising its contest rights
hereunder.

 

9.4.                              If
reasonably requested by Buyer in writing, (a) Seller shall (at the expense and
direction of Buyer) contest in the name of Seller or Buyer (as applicable) the
validity, applicability or amount of such taxes so indemnified by (i), if
permitted by applicable law without adverse consequences to Seller, resisting
payment thereof (ii) paying under protest, if protest is necessary or proper,
and (iii) if payment be made, using reasonable commercial efforts to obtain a
refund thereof in appropriate administrative and judicial proceedings or (b) if
permitted under applicable law, allow Buyer in Seller’s name (at the sole
expense of Buyer) to file a claim or prosecute an action to recover such
payment or protest the validity, applicability or amount of such taxes so
indemnified, subject to receipt by Seller of an indemnity from Buyer (in such
form as is satisfactory to Seller) as to costs, claims or liabilities that
Seller may suffer or incur as a result of Buyer’s actions in Seller’s name. If
Seller becomes eligible for a refund of any taxes paid by Buyer, and if desired
by Buyer and permissible under applicable law, Seller shall assign such right
to Buyer, otherwise, should Seller obtain a refund of all or any part of the
taxes paid by Buyer, Seller shall pay Buyer the amount of such refund, plus,
any interest thereon (net of any taxes imposed on such interest) obtained by
Seller from the tax authority if fairly attributable to such taxes. If such tax
contest shall cause Seller undue hardship or burden (as determined in Seller’s
sole reasonable discretion), Seller and Buyer shall consult in good faith
concerning any tax contest to be undertaken hereunder.

 

10.                               NOTICES

 

Any notice required to be given hereunder shall be in
writing in the English language and shall be served by sending the same by
prepaid recorded post, facsimile or by delivering the

 

10

 

same by hand to the address of the Party or Parties in
question as set out below (or such other address as such Party or Parties shall
notify the other Parties of in accordance with this Clause). Any notice sent by
post as provided in this clause shall be deemed to have been served five
Business Days after despatch and any notice sent by facsimile as provided in
this Clause shall be deemed to have been served at the time of despatch and in
proving the service of the same it will be sufficient to prove in the case of a
letter that such letter was properly stamped, addressed and placed in the post;
and in the case of a facsimile that such facsimile was duly despatched to a
current facsimile number of the addressee.

 

 

	
  Seller

  	
  IAL Leasing Ltd.

  MPA Hangar Suite 113

  St David’s

  
	
   

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
  +1(441) 293-5971

  
	
   

  	
  Fax:

  	
  +1(441) 293-5972

  
	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
  Anthony Philip, Secretary

  

 

11

 

	
  Purchaser

  	
  Flagstone Westwind Holdings Limited

  
	
   

  	
  Crawford House

  
	
   

  	
  23 Church Street

  
	
   

  	
  Hamilton HM 11

  
	
   

  	
  Telephone:

  	
  +1(441) 237-4300

  
	
   

  	
  Fax:

  	
  +1(441) 296-9879

  
	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
  Todd White, General Counsel

  

 

11.                               FORCE
MAJEURE

 

Seller or Buyer shall not be liable for any failure of
or delay in delivery of the Aircraft for the period that such failure or delay
is due to acts of God or the public enemy; civil war, insurrection or riots,
fires, explosions or serious accidents; governmental priorities or allocations;
strikes or labor disputes; inability to obtain necessary materials, accessories
equipment or parts from the manufacturers thereof; or any other cause beyond
Seller’s or Buyer’s, as applicable, reasonable control. Seller or Buyer agree
to notify the other party promptly of the occurrence of any such cause and
carry out this Agreement as promptly as practicable after such cause is
terminated.

 

12.                               TIME
IS OF THE ESSENCE

 

Unless stated expressly to the contrary herein, time
shall be of the essence for all events contemplated hereunder.

 

13.                               CHOICE
OF LAW

 

This Agreement is governed by and construed in all
respects in accordance with the laws of the Islands of Bermuda.

 

14.                               JURISDICTION

 

For the benefit of Seller, the parties agree that the
Bermuda courts have exclusive jurisdiction to settle any dispute in connection
with this Agreement and the Bill of Sale (in the from attached at EXHIBIT D to
this Agreement) and the parties submit to such jurisdiction. The Bermuda courts
are the most appropriate and convenient courts to settle any such dispute.

 

15.                               REMEDIES
UPON DEFAULT

 

15.1.                        Failure by
Buyer to render the sums to Seller as required herein, upon the performance by
Seller of its obligations under this Agreement, shall constitute a breach of
this Agreement, the remedy for such breach being the retention by Seller of the
Deposit, plus reimbursement by Buyer of Seller’s reasonable out of pocket
expenses incurred in performance of this

 

12

 

Agreement incurred after the execution of this
Agreement and up to the time of breach, and the parties hereto expressly agree
that such amount is, after prior negotiation between the parties, a reasonable
and fair pre-estimate of the damages that would be incurred by Seller in the
event of such a breach, and retention of such amount shall be the sole and
exclusive remedy for a breach under this Agreement. The obligations described in
this subparagraph are the full extent of Buyer’s obligations upon such breach,
whether such obligations are express or implied or arising by operation of law,
in equity or otherwise.

 

15.2.                        Failure by
Seller to deliver the Aircraft in accordance with the terms of this Agreement,
unless due to loss of or major damage to the Aircraft, upon the performance by
Buyer of its obligations under this Agreement, shall constitute a breach by
Seller hereof and the parties hereto expressly agree that in the event of such
breach, Seller shall release the Deposit to Buyer and promptly reimburse Buyer
for all out-of-pocket costs and expenses incurred in performance of this
Agreement incurred after the execution of this Agreement and up to the time of
breach. The obligations described in this subparagraph are the full extent of
Seller’s obligations upon such breach, whether such obligations are express or
implied or arising by operation of law, in equity or otherwise.

 

16.                               TRANSACTION
COSTS AND EXPENSES

 

Each party to this Agreement shall bear its own
transaction costs and expenses.

 

17.                               ENTIRE
AGREEMENT

 

Buyer and Seller warrant that the terms and conditions
of this Agreement constitute the entire agreement between the parties.

 

18.                               AMENDMENT

 

The provisions of this Agreement may not be waived,
altered, modified, amended, supplemented or terminated in any manner whatsoever
except by written instrument signed by an authorized signatory of each party
hereto.

 

19.                               ASSIGNMENT

 

Except as set forth in this Agreement, neither party may
assign any of its rights or delegate any of its obligations hereunder without
the prior written consent of the other party. Except as expressly provided
hereunder, this Agreement shall inure to the benefit of and will be binding
upon each of the parties hereto and their respective successors and assigns.

 

20.                               HEADINGS

 

The division of this Agreement into sections, and the
insertion of headings, are for convenience of reference only and shall not
affect the construction or interpretation of this Agreement.

 

13

 

21.                               COUNTERPARTS

 

This Agreement may be fully executed in any number of
separate counterparts by each of the parties hereto, all such counterparts
together constituting but one and the same instrument.

 

22.                               NON-WAIVER

 

Any failure at any time of either party to enforce any
provision of this Agreement shall not constitute a waiver of such provision or
prejudice the right of such party to enforce such provision at any subsequent
time.

 

23.                               SEVERABILITY

 

If any provision of this Agreement is prohibited or
unenforceable in any jurisdiction, such prohibition or unenforceability shall
not invalidate the remaining provisions hereof or affect the validity or
enforceability of such provisions in any other jurisdiction.

 

24.                               LEGAL
FEES

 

In any action or proceeding brought by any party
against the other arising under or in connection with this Agreement or any
other documents related thereto, the prevailing party shall, in addition to
other allowable costs, be entitled to an award of reasonable legal fees.

 

25.                               INDEMNITY

 

Each party hereto agrees to pay their respective
broker’s and finder’s fees and shall indemnify and hold the other party
harmless against any claim for broker’s and finder’s fees based on the alleged
or the actual retention of a broker or finder by the indemnifying party.

 

26.                               FURTHER
DOCUMENTATION AND NECESSARY ACTION

 

Buyer and Seller agree from time to time to do and
perform such other and further acts and to execute and deliver any and all such
other instruments as may be required by law or reasonably requested by the
other party, and at the cost of that other party, to establish, maintain, and
protect the rights, title and remedies of the parties (including the
notification of the interest of Buyer in the Aircraft) and to carry out and
effect the intent and purpose of this Agreement.

 

27.                               SURVIVAL

 

Notwithstanding anything set forth herein to the
contrary, but subject to the disclaimer provisions of Sections 7.1 and 7.2 the
representations, warranties, indemnities and covenants of Buyer and Seller
provided for in this Agreement shall survive consummation of the transaction
contemplated by this agreement at Closing and the expiration or other
termination

 

14

 

of this Agreement.

 

28.                               CONFIDENTIALITY

 

Each party shall use their best efforts to (a) keep,
and (b) cause its respective officers, contractors, employees and agents to
keep, this Agreement and the transactions contemplated hereby strictly confidential,
provided that it may disclose this Agreement and the transactions hereby
contemplated if required to do so for the purpose of legal proceedings,
administrative or regulatory requirements or as otherwise required by law, to
effect any registrations, filings or recordations required by or pursuant to
this Agreement; for the purpose of disclosure to its auditors, insurer(s) or to
its legal or other professional advisers; or for performance of its obligations
under this Agreement.

 

 

[EXECUTION PAGE TO FOLLOW]

 

15

 

IN WITNESS
WHEREOF, the
undersigned, intending to be bound hereby, have duly executed this Agreement as
of the date first written above.

 

 

	
  SIGNED for and on behalf of

  	
  )

  	
   

  	
   

  
	
  IAL Leasing Ltd.

  	
  )

  	
  /s/ Mark Byrne

  	
   

  
	
  in the presence of

  	
  )

  	
  Name: Mark Byrne

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
   Witness:

  	
  /s/ Todd White

  	
   

  
						

 

 

	
  SIGNED for and on behalf of

  	
  )

  	
   

  
	
  Flagstone Westwind Holdings Limited

  	
  )

  	
   

  	
   

  
	
  in the presence of

  	
  )

  	
  Name: David Brown

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   Witness:

  	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

16

 

IN WITNESS WHEREOF, the
undersigned, intending to be bound hereby, have duly executed this Agreement as
of the date first written above.

 

 

	
  SIGNED for and on behalf of

  	
  )

  	
   

  	
   

  
	
  IAL Leasing Ltd.

  	
  )

  	
   

  	
   

  
	
  in the presence of

  	
  )

  	
  Name: Mark Byrne

  	
   

  
	
   

  	
   

  	
  Title: Director

  	
   

  
	
   

  	
   

  	
   

  
	
   Witness:

  	
   

  	
   

  
						

 

 

	
  SIGNED for and on behalf of

  	
  )

  	
   

  
	
  Flagstone Westwind Holdings Limited

  	
  )

  	
  /s/ David Brown

  	
   

  
	
  in the presence of

  	
  )

  	
  Name: David Brown

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   Witness:

  	
  /s/ Todd White

  	
   

  
						

 

16

 

EXHIBIT A

 

SPECIFICATIONS

 

 

	
  Total
  Airframe Hours:

  	
  9175

  

 

	
  Landings:

  	
  5865

  

 

	
  Engines:

  	
   

  	
   

  	
   

  
	
  Left Engine

  	
  TTSN:   

  	
   8735

  	
  Cycles: 5530 MSP

  
	
  Right Engine

  	
   

  	
   8760

  	
   

  	
  5580 MSP

  

 

	
  Avionics

  	
   

  
	
  COM

  	
  Dual Collins (8.33/25 Khz)

  
	
  ELT

  	
  Artex 110-406 NAV

  
	
  Cabin Display
  Converter

  	
  IDC

  
	
  F/D / DUAL

  	
  Collins FDS-80 IFCS FGC-80F

  
	
  A/P

  	
  Collins APS-80 IFCS

  
	
  RADAR

  	
  Collins RNS-300 Color

  
	
  COM / DUAL

  	
  Collins VHF-22D

  
	
  NAV / DUAL

  	
  Collins VIR-30A

  
	
  DME / DUAL

  	
  Collins DME-40

  
	
  ADF / DUAL

  	
  Collins ADF-60A

  
	
  XPNDR / DUAL

  	
  Collins TDR-90

  
	
  HF / DUAL

  	
  Collins 671U

  
	
  RAD ALT

  	
  Collins ALT-50A

  
	
  FPA

  	
  Collins

  
	
  Audio Control
  Panel

  	
  Dual Collins 346 B-3

  
	
  Paperless
  Cockpit

  	
  Dual Approach View Chart Display units (EFBs)

  
	
  MFD

  	
  AVIDYNE 850 Flight Max MFD

  
	
  FMS

  	
  DUAL GNS-XLS

  
	
  AFIS

  	
  Global VHF

  
	
  Satellite Phone

  	
  Air Cell Iridium

  
	
  TCAS II

  	
  Collins TCAS-4000

  
	
  EGPWS

  	
  Honeywell Mark VII

  
	
  RVSM, MNPS,
  RNP-5 Certified, FM Immunity, 8.33Khz

  

 

	
  Additional
  Equipment:

  	
   

  
	
  FAA Certified
  (337) Quick-change Air Ambulance Kit

  

 

	
  Maintenance
  Status:

  	
   

  
	
  C Check Due at
  TTAF 9770, 1400 Hour MPI Completed 7810; Next Due 9210, Engines on MSP

  

 

17

 

Interior:                       Refurbished
by Atlantic Aviation – 2000. 6 Executive seats.

 

Exterior:                     White
over dark blue, blue stripes, repainted by Atlantic Aviation - 2000

 

Additional Information:

 

Aircraft is currently
operated on a Bermuda AOC under JAR-OPS 1, and is RVSM and MNPS compliant with
Class “A” TAWS. Aircraft is Bermuda registered, but is required by Bermuda
Authority to be in compliance with U.S. Type Certificate Data Sheet. Aircraft
will be delivered with an Export C of A if required by the buyer. The aircraft
has two incidents of damage, the nose gear linkage broke and required an
overhaul of the nose gear and when Burlington Northern Railroad owned the
plane, they had a tip tank strike during a crosswind landing, which required a tip tank replacement and wing inspection
and repair.

 

18

 

EXHIBIT B

 

AIRCRAFT DOCUMENTS

 

19

 

EXHIBIT C

 

AIRCRAFT DELIVERY RECEIPT

 

 

This acknowledges full and satisfactory delivery and acceptance of the
following aircraft and/or equipment pursuant to the terms and conditions of
that Aircraft Purchase Agreement dated as of 24th July, 2006 (the
“Purchase Agreement”):

 

	
  Manufacturer:

  	
  Israeli Aircraft Industries

  
	
   

  	
   

  
	
  Make
  and Model:

  	
  Westwind II

  
	
   

  	
   

  
	
  Serial
  No.:

  	
  337

  
	
   

  	
   

  
	
  Registration
  Mark:

  	
  VP-BLT

  
	
   

  	
   

  
	
  Make
  and Model of Engines:

  	
  Honeywell – TFE731-3-1G

  
	
   

  	
   

  
	
  Engine
  Serial No(s).:

  	
  No 1 – S/N 77419

  No 2 – S/N 77422

  
	
   

  	
   

  
	
  APU
  Serial Number:

  	
  N/A

  

 

as further described and defined in the Purchase Agreement (the
“Aircraft”).

 

The Aircraft was received by us on the date and at the location set
forth below and was determined by the undersigned corporation to be in the
condition required for Closing as defined in and pursuant to the Purchase
Agreement, except as noted below.

 

 

IN WITNESS WHEREOF, Buyer
has caused this instrument to be executed by its duly appointed Director this                      
day of July, 2006

 

 

	
   

  	
   

  	
  FLAGSTONE WESTWIND HOLDINGS LIMITED.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: David Brown

  
	
   

  	
   

  	
  Its: Director

  

 

20

 

EXHIBIT D

 

BILL OF SALE

 

BE IT KNOWN:

 

THAT, subject to Section
4 of the Purchase Agreement (as defined below), for and in consideration of the
sum of $10.00 and other good and valuable consideration, receipt of which is
hereby acknowledged, IAL Leasing Ltd. (“Seller”), does, on the date hereof
grant, convey, transfer, bargain, sell, deliver and set over to FLAGSTONE
WESTWIND HOLDINGS LIMITED (“Buyer”), its successors and assigns, all of
Seller’s right, title and interest in and to the Westwind II aircraft bearing
registration mark VP-BLT and manufacturer’s serial number 337 together with (i)
Honeywell - TFE731-3-1G engines bearing manufacturer’s serial numbers 77419 and
77422, respectively (together the “Aircraft”), and (ii) all Aircraft Documents
(as defined in the Aircraft Sale and Purchase Agreement dated as of 24th
July, 2006 between Seller and Buyer (the “Purchase Agreement”).

 

THAT Seller hereby
warrants to Buyer, its successors and assigns, that it is the owner of good and
marketable title to, and there is hereby conveyed to Buyer on the date hereof
good and marketable title to the Aircraft, free and clear of all mortgages,
liens, security interests, claims, charges and encumbrances and rights of any
other person of any nature whatsoever, other than liens arising as a result of
or attributable to Buyer, and Seller shall defend such title against all
persons whomsoever.

 

EXCEPT AS EXPRESSLY
PROVIDED IN THIS AGREEMENT THE AIRCRAFT AND ANY OF THE AIRCRAFT DOCUMENTS
APPLICABLE TO THE AIRCRAFT (AND FOR THE PURPOSES OF THIS SECTION ANY OTHER
EQUIPMENT, PART, DATA OR INFORMATION SOLD HEREUNDER) ARE SOLD ON AN “AS IS”
BASIS, WITH ALL FAULTS AND WITHOUT RECOURSE TO SELLER. THE WARRANTIES EXPRESSLY
SET FORTH IN THIS AGREEMENT INCLUDING ANY WARRANTY OF TITLE OR OTHERWISE AS SET
FORTH IN THE BILL OF SALE AND THE OBLIGATIONS AND LIABILITIES OF SELLER THERE
UNDER ARE EXPRESSLY IN LIEU OF, AND SELLER WILL NOT BE DEEMED TO HAVE MADE, AND
BUYER HEREBY WAIVES, ANY AND ALL OTHER REPRESENTATIONS, WARRANTIES, DUTIES, AND
GUARANTEES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE,
CONCERNING THE AIRCRAFT OR THE AIRWORTHINESS THEREOF, OR THE VALUE, CONDITION,
DESIGN, OPERATION, DURABILITY OR COMPLIANCE WITH SPECIFICATION OF SUCH
AIRCRAFT, INCLUDING, BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY
OR FITNESS FOR ANY PARTICULAR PURPOSE, AND BUYER HEREBY WAIVES ANY AND ALL
RIGHTS AND REMEDIES IT MAY HAVE AGAINST SELLER RELATING TO ANY OF THE FOREGOING
AND ARISING BY LAW OR OTHERWISE.

 

This Bill of Sale is
governed by the laws of Bermuda

 

21

 

AIRCRAFT DELIVERY RECEIPT

 

 

This acknowledges full and satisfactory delivery and acceptance of the
following aircraft and/or equipment pursuant to the terms and conditions of
that Aircraft Purchase Agreement dated as of 24th July, 2006 (the
“Purchase Agreement”):

 

	
  Manufacturer:

  	
  Israeli Aircraft Industries

  
	
   

  	
   

  
	
  Make
  and Model:

  	
  Westwind II

  
	
   

  	
   

  
	
  Serial
  No.:

  	
  337

  
	
   

  	
   

  
	
  Registration
  Mark:

  	
  VP-BLT

  
	
   

  	
   

  
	
  Make
  and Model of Engines:

  	
  Honeywell – TFE731-3-1G

  
	
   

  	
   

  
	
  Engine
  Serial No(s).:

  	
  No 1 – S/N 77419

  No 2 – S/N 77422

  
	
   

  	
   

  
	
  APU
  Serial Number:

  	
  N/A

  

 

as further described and
defined in the Purchase Agreement (the “Aircraft”).

 

The Aircraft was received by us on the date and at the location set
forth below and was determined by the undersigned corporation to be in the
condition required for Closing as defined in and pursuant to the Purchase
Agreement, except as noted below.

 

IN WITNESS WHEREOF, Buyer
has caused this instrument to be executed by its duly appointed Director this
31st day of July, 2006.

 

 

	
   

  	
   

  	
  FLAGSTONE WESTWIND HOLDINGS LIMITED.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David Brown

  	
   

  
	
   

  	
   

  	
  Name: David Brown

  
	
   

  	
   

  	
  Its: Director

  

 

 

IN
WITNESS WHEREOF, Seller has caused this instrument to be
executed by its duly appointed Director this 27th day of July, 2006

 

 

	
   

  	
   

  	
  IAL LEASING LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mark Byrne

  	
   

  
	
   

  	
   

  	
  Name: Mark Byrne

  
	
   

  	
   

  	
  Its: Director

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