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                                                                    EXHIBIT 10.2

                              GUARANTY OF AGREEMENT

      THIS GUARANTY OF AGREEMENT (this "GUARANTY") is made and entered into as
of April 27, 2005 by World Airways, Inc., a Delaware corporation ("GUARANTOR")
and a wholly-owned subsidiary of World Air Holdings, Inc., a Delaware
corporation (the "PARENT"), to and for the benefit of Dan McKinnon, as Trustee
of the Dan and Janice McKinnon Family Trust dated January 15, 2005 ("Seller").
Guarantor and Seller are sometimes herein individually referred to as a "PARTY"
and, collectively, as the "PARTIES." Capitalized terms used herein that are not
otherwise defined shall have the respective meanings set forth in the Stock
Purchase Agreement (as defined below).

                                   WITNESSETH:

      WHEREAS, pursuant to that certain Stock Purchase Agreement, dated as of
even date hereof (the "STOCK PURCHASE AGREEMENT"), by and among the Parent,
Seller, North American Airlines, Inc., a Delaware corporation ("NAA"), and Dan
McKinnon, in his individual capacity ("MCKINNON"), Parent, in addition to a cash
payment to Seller made simultaneously with the execution of this Guaranty,
undertook certain other obligations to be performed after the date of this
Guaranty in exchange for all of the shares of common stock of NAA (the "ACQUIRED
ASSETS");

      WHEREAS, Guarantor desires that Parent acquire the Acquired Assets from
Seller, and is therefore willing to guarantee all obligations of Purchaser under
the Stock Purchase Agreement; and

      WHEREAS, the execution and delivery by Guarantor of this Guaranty is a
condition to McKinnon's and Seller's performance under the Stock Purchase
Agreement.

      NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by Guarantor, and intending to be legally bound, Guarantor hereby
agrees as follows:

      SECTION 1. GUARANTEED OBLIGATIONS. Guarantor hereby unconditionally and
irrevocably guarantees to Seller the due, punctual and full payment and
performance of, and covenants with Seller to duly, punctually and fully pay and
perform, and to be fully liable to Seller for all indebtedness, liabilities and
obligations of Parent evidenced or set forth in the Stock Purchase Agreement
(collectively, the "GUARANTEED OBLIGATIONS").

      SECTION 2. GUARANTY UNCONDITIONAL. The obligations of Guarantor hereunder
are continuing, absolute and unconditional, irrespective of any circumstance
whatsoever which might otherwise constitute a legal or equitable discharge or
defense of a guarantor or surety. Without limiting the generality of the
foregoing, the obligations of Guarantor hereunder shall remain in full force and
effect without regard to, and shall not be released, discharged or in any way
affected by:

            (a) any amendment, modification or supplement to the Stock Purchase
      Agreement;

            (b) any exercise or nonexercise of or delay in exercising any right,
      remedy, power or privilege under or in respect of this Guaranty or the
      Stock Purchase Agreement (even if any such right, remedy, power or
      privilege shall be lost thereby), or any waiver, consent, indulgence or
      other action or inaction in respect thereof;

            (c) any bankruptcy, reorganization, insolvency, arrangement,
      composition,

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      assignment for the benefit of creditors or similar proceeding commenced by
      or against Guarantor or any discharge, limitation, modification or release
      of liability of the Guarantor by virtue of such proceedings;

            (d) any extension of time for payment or performance of the
      Guaranteed Obligations;

            (e) any voluntary or involuntary liquidation, dissolution, sale of
      all or substantially all of the property of, or any marshaling of assets
      and liabilities or other similar proceeding affecting, Guarantor or any of
      its assets; or

            (f) any other circumstances which might otherwise constitute a legal
      or equitable discharge of a guarantor or surety.

      SECTION 3. WAIVER OF DEFENSES. Guarantor hereby waives diligence,
presentment, demand, protest, acceptance of this Guaranty, and except as
otherwise specifically provided herein, all notices of any kind, and waives any
requirement that Seller exhaust any right or remedy. This Guaranty constitutes
an agreement of suretyship as well as of guaranty, and Seller may pursue its
rights and remedies under this Guaranty and under the Stock Purchase Agreement
in whatever order, or collectively, as Seller may elect, and shall be entitled
to payment and performance hereunder. Further, Guarantor waives and agrees not
to assert or take advantage of:

            (a) any right to require Seller to proceed against Parent, any other
      guarantor or any other person or any security now or hereafter held by
      Seller or to pursue any other remedy whatsoever;

            (b) any defense based upon any legal disability of Parent or any
      guarantor or other person, or any discharge or limitation of the liability
      of Parent or any guarantor or other person to Seller, or any restraint or
      stay applicable to actions against Parent or any guarantor or other
      person, whether such disability, discharge, limitation, restraint or stay
      is consensual, or arising by order of a court or other governmental
      authority, or arising by operation of law or any liquidation,
      reorganization, insolvency, receivership, bankruptcy, assignment for the
      benefit of creditors or other debtor-relief proceeding, or from any other
      cause, including any defense to the payment of interest, attorneys' fees
      and costs, and other charges that otherwise would accrue or become payable
      in respect to the Guaranteed Obligations after the commencement of any
      such proceeding;

            (c) any right of or to any setoff or counterclaim (including without
      limitation pursuant to the Stock Purchase Agreement), presentment, demand,
      protest, notice of protest, nonpayment, default or acceleration, or other
      notice of any kind;

            (d) any defense based upon the modification, renewal, extension or
      other alteration of any of the Guaranteed Obligations, or of the documents
      executed in connection therewith;

            (e) any defense based upon the negligence of Seller, including the
      failure to perfect any security interest, or the failure to file a claim
      in any bankruptcy of Parent or any guarantor or other person;

            (f) any defense based upon a statute of limitations to the fullest
      extent permitted by law and any defense based upon Seller's delay in
      enforcing this Guaranty or any other agreement;

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            (g) all rights of subrogation, reimbursement, indemnity and
      contribution, all rights to enforce any remedy that Seller may have
      against Parent or other person, and all rights to participate in any
      security held by Seller for the Guaranteed Obligations until the
      Guaranteed Obligations have been paid and performed in full, and any
      defense based upon the impairment of any subrogation, reimbursement,
      indemnity or contribution rights that Guarantor might have, including any
      defense or right based upon the acceptance by Seller or an affiliate of
      Seller of a deed in lieu of foreclosure without extinguishing the
      Guaranteed Obligations, even if such acceptance destroys, alters or
      otherwise impairs subrogation rights of Guarantor, the right of Guarantor
      to proceed against Parent or any other person for reimbursement, or both;

            (h) any defense based upon or arising out of any defense which
      Parent or any other guarantor or other person may have to the performance
      of any part of the Guaranteed Obligations;

            (i) any defense based upon the death, incapacity, lack of authority,
      invalidity or termination of existence of, or purported revocation or
      rescission of this Guaranty or any of the Guaranteed Obligations by, any
      person, or the substitution of any Party hereto or thereto;

            (j) any defense based upon or related to Guarantor's lack of
      knowledge as to Parent's financial condition;

            (k) any right to revoke this Guaranty or obligations hereunder;

            (l) any right to designate the application of any sums or property
      received by Seller (and Guarantor agrees that any amounts or sums received
      by Seller from any source on account of the Guaranteed Obligations may be
      applied by Seller toward payment thereof in such order of application as
      Seller may from time to time elect); and

            (m) any defense based upon any action taken or omitted by Seller in
      any bankruptcy or other insolvency proceeding involving Parent or any
      other person, including any election to have Seller's claim allowed as
      secured, partially secured or unsecured, any extension of credit by Seller
      to Parent in any such proceeding, and the taking and holding by Seller of
      any security for any such extension of credit;

      SECTION 4. EVENT OF DEFAULT. The occurrence of any one or more of the
following events after the expiration of any applicable grace or cure period
provided under the Stock Purchase Agreement shall constitute an Event of Default
under the provisions of this Guaranty, and the term "EVENT OF DEFAULT" as used
in this Guaranty shall mean the occurrence of any one or more of the following
events:

            (a) the failure of Guarantor to promptly pay or perform the
      Guaranteed Obligations, or

            (b) the commencement or filing of any proceedings by or against
      Guarantor or any of Guarantor's assets or properties under the provisions
      of any bankruptcy, reorganization, arrangement, insolvency, receivership,
      liquidation or similar law for the relief of debtors, and, except with
      respect to any such proceedings instituted by Guarantor, are not
      discharged within sixty (60) days of their commencement.

      SECTION 5. RIGHTS AND REMEDIES. Upon the occurrence of an Event of Default
under the provisions of this Guaranty, an amount equal to the total of the
Guaranteed Obligations then outstanding shall immediately and automatically be
due and payable by Guarantor to Seller without further action by, or notice of
any kind from, Seller unless expressly provided for herein, and Seller may at
any time and

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from time to time thereafter exercise any powers, rights and remedies available
to Seller under the provisions of this Guaranty, the Stock Purchase Agreement
and applicable laws to enforce and collect the obligations and liabilities of
Guarantor hereunder, all such powers, rights and remedies being cumulative and
enforceable alternatively, successively or concurrently. Each and every Event of
Default hereunder shall give rise to a separate cause of action hereunder, and
separate actions may be brought hereunder as each cause of action arises. No
failure or delay by Seller in one or more instances to require strict
performance by Guarantor of any of the provisions hereof or to exercise any
powers, rights or remedies available to it under the provisions of this
Guaranty, the Stock Purchase Agreement or applicable laws shall operate as a
waiver thereof or preclude Seller at any later time or times from demanding
strict performance thereof or exercising any such powers, rights or remedies. No
conduct, custom or course of dealing shall be effective to waive, amend, modify
or release this Guaranty. No modification or waiver of any of the provisions of
this Guaranty shall be effective unless it is in writing and signed by Seller,
and any such waiver shall be effective only in the specific instance and for the
specific purpose for which it is given.

      SECTION 6. REPRESENTATIONS AND WARRANTIES. Guarantor represents and
warrants as follows:

            (a) Guarantor is a corporation duly incorporated, validly existing,
      and is in good standing under the laws of Delaware and is duly qualified
      to do business in all states if any in which it is required to be
      qualified;

            (b) Guarantor has the requisite power and authority to own and
      manage its assets, to carry on its business as now being conducted and to
      perform its obligations hereunder;

            (c) The individual(s) executing this Guaranty on behalf of Guarantor
      or any person comprising a part of Guarantor is authorized and empowered
      by his/her or their signatures alone to bind Guarantor;

            (d) Guarantor has the full right, power and authority to execute and
      deliver this Guaranty, consummate the transactions contemplated hereby,
      and perform its obligations hereunder;

            (e) This Guaranty has been duly authorized, executed and delivered,
      and does not and will not require any consent or approval of any person or
      entity other than that which has been heretofore obtained;

            (f) The execution, delivery and performance by Guarantor of this
      Guaranty (i) have been duly authorized by all necessary action, (ii) are
      within the power of Guarantor, (iii) have received all necessary
      governmental approvals, and (iv) do not and will not (1) contravene
      Guarantor's corporate charter, articles of incorporation, bylaws or any
      other of Guarantor's corporate formation or governance documents, (2)
      violate any provision of any law, rule or regulation or any order,
      judgment or decree of any court or agency of government, or any indenture,
      agreement or any other instrument to which Guarantor is a party or by
      which Guarantor or its assets is bound, and (3) result in a breach of or
      constitute (with due notice and/or lapse of time) a default under any such
      indenture, agreement or other instruments which would affect this
      Guaranty;

            (g) This Guaranty has been duly executed by Guarantor and, when
      delivered to Seller, will constitute a legal, valid and binding obligation
      enforceable against Guarantor in accordance with its terms;

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            (h) Guarantor is not insolvent, and no bankruptcy or insolvency
      proceedings are pending or to the best of Guarantor's knowledge
      contemplated by or against Guarantor;

            (i) The value of the consideration received and to be received by
      Guarantor in connection with the Guaranteed Obligations and the Stock
      Purchase Agreement is reasonably worth at least as much as the liability
      and obligations of Guarantor incurred or arising under this Guaranty;
      Guarantor has had full and complete access to the documents relating to
      the Guaranteed Obligations, has reviewed them and is fully aware of the
      meaning and effect of their contents; Guarantor is fully informed of all
      circumstances which bear upon the risks of executing this Guaranty and
      which a diligent inquiry would reveal; Guarantor has adequate means to
      obtain from Parent on a continuing basis information concerning Parent's
      financial condition, and is not depending on Seller to provide such
      information, now or in the future; Guarantor agrees that Seller shall not
      have any obligation to advise or notify Guarantor or to provide Guarantor
      with any data or information; and

            (j) Guarantor has all requisite power and authority to transact any
      other business with Seller as necessary to fulfill the terms of this
      Guaranty.

      SECTION 7. FURTHER ASSURANCES. From time to time upon the request of
Seller, Guarantor shall promptly and duly execute, acknowledge and deliver any
and all such further instruments and documents as Seller may deem reasonably
necessary or desirable to confirm this Guaranty, to carry out the purpose and
intent hereof or to enable Seller to enforce any of its rights hereunder.

      SECTION 8. AMENDMENTS, WAIVERS, ETC. This Guaranty cannot be amended,
modified, waived, changed, discharged or terminated except by an instrument in
writing signed by the Party against whom enforcement of such amendment,
modification, waiver, change, discharge or termination is sought.

      SECTION 9. NO IMPLIED WAIVER; CUMULATIVE REMEDIES. No course of dealing
and no delay or failure of Seller in exercising any right, power or privilege
under this Guaranty or the Stock Purchase Agreement shall affect any other or
future exercise thereof or exercise of any other right, power or privilege; nor
shall any single or partial exercise of any such right, power or privilege or
any abandonment or discontinuance of steps to enforce such a right, power or
privilege preclude any further exercise thereof or of any other right, power or
privilege. The rights and remedies of Seller under this Guaranty are cumulative
and not exclusive of any rights or remedies which Seller would otherwise have
under the Stock Purchase Agreement, at law or in equity.

      SECTION 10. NOTICES. All notices, demands, requests, and other
communications desired or required to be given hereunder shall be given in a
manner and at the addresses set forth in Section 10.1 of the Stock Purchase
Agreement.

      SECTION 11. SEVERABILITY. If any term or provision of this Guaranty or the
application thereof to any person or circumstance shall to any extent be invalid
or unenforceable, the remainder of this Guaranty, or the application of such
term or provision to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each term and
provision of this Guaranty shall be valid and enforceable to the full extent
permitted by law.

      SECTION 12 COUNTERPARTS. This Guaranty may be executed in any number of
counterparts by the Parties hereto, each of which, when so executed, shall be
deemed an original, but all such counterparts shall constitute but one and the
same instrument.

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      SECTION 13. GOVERNING LAW. This Stock Purchase Agreement, and the rights
and obligations of the Parties hereunder, shall be governed by, construed and
enforced in accordance with the laws of the State of New York, without regard to
principles of conflicts of laws thereof.

      SECTION 14. SUCCESSORS AND ASSIGNS. This Guaranty shall bind Guarantor and
Guarantor's heirs, executors, successors and assigns, and shall inure to the
benefit of Seller and its successors and assigns.

      SECTION 15. TIME IS OF THE ESSENCE. Time is of the essence in connection
with all obligations of Guarantor hereunder.

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      IN WITNESS WHEREOF, Guarantor has duly executed and delivered this
Guaranty as of the date first above written.

                                          GUARANTOR:

                                          WORLD AIRWAYS, INC.

                                          By: /s/ Randy J. Martinez
                                              -----------------------
                                              Name: Randy J. Martinez
                                              Title: CEO & President

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                                                                    EXHIBIT 10.3

                                ESCROW AGREEMENT

      THIS ESCROW AGREEMENT (this "AGREEMENT") is made and entered into this
27th day of April, 2005, by and among WORLD AIR HOLDINGS, INC., a Delaware
corporation (the "PURCHASER"). DAN MCKINNON, AS TRUSTEE OF THE DAN AND JANICE
MCKINNON FAMILY TRUST DATED JANUARY 15, 2005 (the "SELLER"), and SUNTRUST BANK,
a Georgia banking corporation, as escrow agent (the "ESCROW AGENT").

                                   BACKGROUND

      A. Contemporaneously with the execution and delivery hereof, Purchaser,
North American Airlines, Inc., a Delaware corporation ("NAA"), Seller, and Dan
McKinnon, an individual, are consummating the transactions contemplated by that
certain Stock Purchase Agreement dated as of April 27, 2005 (the "PURCHASE
AGREEMENT"), pursuant to which the Seller is selling, transferring, conveying,
assigning and delivering to the Purchaser one hundred percent (100%) of the
issued and outstanding capital stock of NAA, and in connection therewith, the
Seller received consideration in the form of cash and a promissory note.

      B. The Purchase Agreement contemplates the establishment of a fund to
satisfy certain potential obligations of the Seller with respect to
indemnification pursuant to Article IX of the Purchase Agreement.

      C. Escrow Agent agrees to accept the Escrow Fund (as defined herein) and
to hold, administer and distribute the Escrow Fund in accordance with the terms
and conditions set forth herein.

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

                                    AGREEMENT

      For and in consideration of the premises, the mutual covenants and
agreements hereinafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

      1. Appointment of Escrow Agent. The Purchaser and the Seller hereby
designate and appoint Escrow Agent to serve as escrow agent and Escrow Agent
hereby confirms its agreement to act as escrow agent upon the terms, conditions
and provisions of this Agreement.

      2. Creation of Escrow Fund.

            (a) As contemplated in Section 2.3 of the Purchase Agreement,
Purchaser is depositing with Escrow Agent an amount equal to Two Hundred Fifty
Thousand Dollars and No Cents ($250,000.00) in immediately available funds (said
sum as reduced by any disbursements, amounts distributed under Section 5 hereof,
or losses on investments, is herein referred to as the "ESCROW FUND"). Unless
instructed otherwise in writing, the Escrow Agent shall invest the Escrow Fund
in the STI Classic U.S. Treasury Securities Money Market Fund. Notwithstanding

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anything to the contrary herein provided, the Escrow Agent shall have no duty to
prepare or file any Federal or state tax report or return with respect to the
Escrow Fund or any income earned thereon. The Seller shall bear the cost of the
investment fees in connection herewith.

            (b) The Escrow Agent shall invest the Escrow Fund pursuant to the
written instructions of the Seller in (i) investments in commercial paper
maturing in 270 days or less from the date of issuance which, at the time of
acquisition by the Escrow Agent, is rated Al or better by Standard & Poor's
Corporation or P1 or better by Moody's Investors Service, Inc.; (ii) investments
in direct obligations of the United States of America, or any agency or
instrumentality of the United States of America, the payment or guarantee of
which constitutes a full faith and credit obligation of the United States of
America, in either case, maturing in twelve months or less from the date of
acquisition thereof; (iii) investments in repurchase agreements, banker's
acceptances, certificates of deposit and time deposits, in each case maturing
within one year from the date of origin, issued by a bank or trust company
organized under the laws of the United States or any state thereof, having at
the date of the acquisition by the Escrow Agent capital, surplus and undivided
profits aggregating at least $500,000,000; or (iv) the STI Classic U.S. Treasury
Securities Money Market Fund (or any similar money market fund approved by
Escrow Agent, Seller and Purchaser), as directed by Seller in writing. Any
income earned on such investments shall be paid by Escrow Agent to the Seller
not less often than monthly. The Escrow Fund is to be held, administered and
paid by the Escrow Agent as provided herein. The Escrow Agent acknowledges
receipt of the Escrow Fund and agrees to hold, administer and pay the same in
accordance with the terms of this Agreement and to not permit any withdrawal
thereof except pursuant to the terms hereof.

      3. Purpose of Escrow Fund. The Escrow Fund has been established for the
purpose of providing a source of funds to pay indemnification claims made by the
Purchaser under Article IX of the Purchase Agreement.

      4. Notices Directing Distribution of Escrow Fund. As used herein, the term
"NOTICE OF DISTRIBUTION" means a certificate executed jointly by the Purchaser
and the Seller and delivered to Escrow Agent, specifying the disposition to be
made of the Escrow Fund in accordance with the provisions of Article IX of the
Purchase Agreement.

      5. Disposition of Escrow Fund.

            (a) Escrow Agent shall pay and disburse the Escrow Fund as follows:

                (i) To Purchaser, as specified in any Notice of Distribution
received by Escrow Agent; or

                (ii) To Seller, as specified in any Notice of Distribution
received by Escrow Agent.

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            (b) Further, income earned on the Escrow Fund shall be distributed
to Seller at least monthly, as provided in Section 2(b) of this Escrow
Agreement;

            (c) All disbursements hereunder pursuant to Section 5(a)(i) or
5(a)(ii) shall be made by the Escrow Agent within two (2) business days
following Escrow Agent's receipt of a Notice of Distribution, as contemplated in
Section 5(a) above.

      6. The Escrow Agent's Duties. The Escrow Agent shall be obligated to
perform only such duties as are expressly set forth in this Agreement, and shall
not be required, in carrying out its duties under this Agreement, to take notice
of or refer to any other document or agreement, including the Purchase
Agreement. The provisions of this Section 6 shall survive the resignation or
removal of the Escrow Agent or the termination of this Agreement.

      7. The Escrow Agent's Fees and Expenses. The Purchaser agrees to (i) pay
or reimburse the Escrow Agent for its attorney's fees and expenses incurred in
connection with the preparation of this Escrow Agreement, and (ii) pay the
Escrow Agent's compensation for its services hereunder in accordance with the
fee schedule attached hereto as Exhibit A and made a part hereof, which may be
subject to change hereafter by the Escrow Agent on an annual basis. The
Purchaser agrees to reimburse the Escrow Agent on demand for all costs and
expenses incurred in connection with the administration of this Escrow Agreement
or the escrow created hereby or the performance or observance of its duties
hereunder which are in excess of its compensation for normal services hereunder,
including without limitation payment of any legal fees and expenses incurred by
the Escrow Agent in connection with resolution of any claim by any party
hereunder.

      8. Provisions Relating To The Escrow Agent.

            (a) The Escrow Agent shall not be liable for any action or omission
hereunder, except for its own gross negligence or willful misconduct. Further,
except with respect to claims based upon such gross negligence or willful
misconduct that are successfully asserted against the Escrow Agent, Purchaser
agrees to indemnify and hold harmless the Escrow Agent and each of its officers,
directors, employees and agents (and any successor escrow agent) from and
against any and all losses, liabilities, claims, actions, damages and expenses,
including reasonable attorneys' fees and disbursements, arising directly or
indirectly out of or in connection with this Agreement or the Escrow Agent's
undertaking to serve as escrow agent hereunder. As between the parties hereto
other than the Escrow Agent, if Seller's acts or omissions give rise to the
above-mentioned indemnity obligation to the Escrow Agent, then Seller shall
reimburse Purchaser for any expense incurred by Purchaser in connection with the
indemnity of Escrow Agent. Without limiting the foregoing, the Escrow Agent
shall in no event be liable in connection with its investment or reinvestment of
any cash held by it hereunder in good faith, in accordance with the terms
hereof, including, without limitation, any liability for any delays (not
resulting from its own gross negligence or willful misconduct) in the investment
or reinvestment of the Escrow Fund, or any loss of interest incident to any such
delays.

            (b) Provided that the Escrow Agent acts in good faith, the Escrow
Agent shall be entitled to rely upon any order, judgment, certification, demand,
notice, instrument or other writing delivered to it hereunder without being
required to determine the authenticity or the

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correctness of any fact stated therein or the propriety or validity of the
service thereof. The Escrow Agent may act in reliance upon any instrument or
signature believed by it in good faith to be genuine and provided that it
believes in good faith that the person executing such instrument has been
authorized to do so. The Escrow Agent may conclusively assume that the
undersigned representative of any party hereto which is an entity other than a
natural person has full power and authority to instruct the Escrow Agent on
behalf of that party unless written notice to the contrary is delivered to the
Escrow Agent.

            (c) The Escrow Agent may act pursuant to the advice of counsel with
respect to any matter relating to this Agreement and shall be fully protected
and not be liable for any action taken or omitted by it in good faith in
accordance with such advice.

            (d) Any payments of income from the Escrow Fund shall be subject to
withholding regulations then in force with respect to United States taxes. The
Seller will provide the Escrow Agent with appropriate Internal Revenue Service
Forms W-9 for tax identification number certification or non-resident alien
certifications. The Escrow Agent shall have no duty or obligation with respect
to the preparation or the filing of any report or return pertaining to any state
or Federal taxation. The Seller agrees that, for purposes of federal and state
income taxes, the Seller will report all income, if any, that is earned on, or
derived from, the Escrow Fund as its income in the taxable year or years in
which such income is properly includable and pay any taxes attributable thereto.

            (e) In the event of any disagreement between the Purchaser on the
one hand, and the Seller on the other hand, or any other dispute or disagreement
resulting in adverse claims or demands being made in connection with the Escrow
Fund or this Agreement or in the event that the Escrow Agent is in doubt as to
what action it should take hereunder, the Escrow Agent shall be entitled to (i)
retain the Escrow Fund until the Escrow Agent shall have received (A) a final
non-appealable order of an arbitrator or a court of competent jurisdiction
directing delivery of the Escrow Fund, or (B) Notice of Distribution directing
delivery of the Escrow Fund, in which event the Escrow Agent shall disburse the
Escrow Fund in accordance with such Notice of Distribution; or (ii) tender into
the registry or custody of any court of competent jurisdiction any part or all
of the Escrow Fund, in which case the Escrow Agent shall thereupon be discharged
from all further duties as escrow agent under this Agreement. Any court order
shall be accompanied by a legal opinion by counsel for the presenting party
reasonably satisfactory to the Escrow Agent to the effect that the order is
final and non-appealable. The Escrow Agent may rely conclusively and without
inquiry on the validity and genuineness of any such court order and opinion
furnished to the Escrow Agent and shall act in accordance with such court order
and legal opinion without further question.

            (f) The provisions of this Section 8 shall survive the resignation
or removal of the Escrow Agent or the termination of this Agreement.

      9. Resignation of the Escrow Agent. The Escrow Agent may at any time
resign as escrow agent hereunder by giving thirty (30) days' prior written
notice of resignation to the Purchaser and the Seller. Prior to the effective
date of the resignation as specified in such notice, the Purchaser and the
Seller will issue to the Escrow Agent joint written instructions directing
redelivery of all property held pursuant to this Agreement to a bank or trust
company which they

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mutually select. If, however, the Purchaser and the Seller shall fail to name
such a successor escrow agent within twenty (20) days after the notice of
resignation from the Escrow Agent, the Escrow Agent may (i) apply to a court of
competent jurisdiction for appointment of a successor escrow agent, or (ii)
deposit all property held pursuant to this Agreement into the registry of a
court of proper jurisdiction, and in either such case the Escrow Agent shall
thereupon be relieved of any further obligation under this Agreement. Any such
successor escrow agent must agree to be and shall be bound by, and shall have
all the rights, duties and responsibilities of the Escrow Agent under this
Agreement. Such resignation shall not deprive the Escrow Agent of its
compensation earned prior to such resignation, the Escrow Agent's right to
reimbursement of expenses, or the Escrow Agent's rights to the indemnification
provided for in Section 8 hereof.

      10. Notices. All notices, consents, waivers, and other communications
under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt), (b)
sent by telecopier (with written confirmation of receipt), or (c) when received
by the addressee, if sent by a nationally recognized overnight delivery service
(receipt requested), in each case to the appropriate addresses and telecopier
numbers set forth below (or to such other addresses and telecopier numbers as a
party may designate by notice to the other parties):

      If to the Seller:

            1125 Pacific Beach Drive, Unit 101
            San Diego, California 92109
            Attention:  Mr. Dan McKinnon
            Telecopier: (858) 270-7073
            Tax ID#     __________________

      with a copy (which shall not constitute notice) to:

            Selzer Caplan McMahon Vitek
            750 "B" Street, Suite 2100
            San Diego, California 92101
            Attention:  Mr. John H. Alspaugh
            Telecopier: (619) 702-6813

      If to Purchaser:

            World Air Holdings, Inc.
            The HLH Building
            101 World Drive
            Peachtree City, Georgia 30269
            Attn:       General Counsel
            Telecopier: (770) 632-8005
            Tax ID#     __________________

                                      -5-
<PAGE>

      With a copy (which shall not constitute notice) to:

            Powell Goldstein LLP
            One Atlantic Center, Fourteenth Floor
            1201 West Peachtree Street, NW
            Atlanta, Georgia 30309-3488
            Attn:       Mr. Thomas R. McNeill
            Telecopier: (404) 572-6999

      If to Escrow Agent, to:

            SunTrust Bank
            Corporate Trust Department
            25 Park Place, 24th Floor
            Atlanta, Georgia 30303-2900
            Attn:      Ms. Olga Warren
            Telephone: (404) 588-7262
            Facsimile: (404) 588-7335

      11. Governing Law. This Agreement shall be governed by the laws of the
State of Georgia, without regard to such State's conflicts of law principles.

      12. Jurisdiction; Service of Process. Any action or proceeding seeking to
enforce any provision of, or based on any right arising out of, this Agreement
may be brought against any of the parties in the courts of the State of Georgia,
County of Fulton, or, if it has or can acquire jurisdiction, in the United
States District Court for the Northern District of Georgia, and each of the
parties consents to the jurisdiction of such courts (and of the appropriate
appellate courts) in any such action or proceeding and waives any objection to
venue laid therein. Process in any action or proceeding referred to in the
preceding sentence may be served on any party anywhere in the world.

      13. Counterparts. This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original and all of which,
when taken together, will be deemed to constitute one and the same instrument.

      14. Section Headings. The headings of sections in this Agreement are
provided for convenience only and will not affect its construction or
interpretation.

      15. Waiver. The rights and remedies of the parties to this Agreement are
cumulative and not alternative. Neither the failure nor any delay by any party
in exercising any right, power, or privilege under this Agreement or the
documents referred to in this Agreement will operate as a waiver of such right,
power, or privilege, and no single or partial exercise of any such right, power,
or privilege will preclude any other or further exercise of such right, power,
or privilege or the exercise of any other right, power, or privilege. To the
maximum extent permitted by applicable law, (a) no claim or right arising out of
this Agreement or the documents referred to in this Agreement can be discharged
by one party, in whole or in part, by a waiver or renunciation

                                      -6-
<PAGE>

of the claim or right unless in writing signed by the other parties; (b) no
waiver that may be given by a party will be applicable except in the specific
instance for which it is given; and (c) no notice to or demand on one party will
be deemed to be a waiver of any obligation of such party or of the right of the
party giving such notice or demand to take further action without notice or
demand as provided in this Agreement or the documents referred to in this
Agreement.

      16. Exclusive Agreement and Modification. This Agreement supersedes all
prior agreements among the parties with respect to its subject matter and
constitutes (along with the documents referred to in this Agreement, as between
the parties other than the Escrow Agent) a complete and exclusive statement of
the terms of the agreement between the parties with respect to its subject
matter. This Agreement may not be amended except by a written agreement executed
by the Purchaser, the Seller, and the Escrow Agent.

      17. Succession and Assignment. This Agreement shall be binding upon and
inure to the benefit of the parties named herein and their respective successors
and permitted assigns. No party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written approval
of each other Party.

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

                                      -7-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed under seal as of the day and year first written above.

                               PURCHASER:

                               WORLD AIR HOLDINGS, INC.

                               By: /s/ Randy J. Martinez                 (SEAL)
                                   --------------------------------------
                               Name: Randy J. Martinez
                               Title: CEO & President
                               Tax ID#: ______________________________________

                               SELLER:

                               /s/ Dan McKinnon                          (SEAL)
                               ------------------------------------------
                               Dan McKinnon
                               As Trustee of the Dan and Janice McKinnon Family
                               Trust dated January 15, 2005
                               Tax ID#: ______________________________________

                               ESCROW AGENT:

                               SUNTRUST BANK

                               By: /s/ Olga Warren                       (SEAL)
                                   --------------------------------------
                               Name: OLGA WARREN
                               Title: FIRST VICE PRESIDENT

<PAGE>

                                    EXHIBIT A

                   SCHEDULE OF FEES FOR ESCROW AGENT SERVICES

      The annual fee of [___________________________ DOLLARS ($_______________)]
[PENDING CONFIRMATION] for administering this Escrow Agreement is payable in
advance at the time of closing and, if applicable, will be invoiced each year to
the appropriate party(ies) on the anniversary date of the closing of the Escrow
Agreement.

      Out of pocket expenses such as, but not limited, to postage, courier,
overnight mail, insurance, money wire transfer, long distance telephone charges,
facsimile, stationery, travel, legal or accounting, etc., will be billed at
cost.

      These fees do not include extraordinary services which will be priced
according to time and scope of duties. The fees shall be deemed earned in full
upon receipt by the Escrow Agent, and no portion shall be refundable for any
reason, including without limitation, termination of the Escrow Agreement.

      It is acknowledged that the schedule of fees shown above are acceptable
for the services mutually agreed upon and the undersigned authorizes the Escrow
Agent to perform said services.

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