Document:

Exhibit 10.6

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (“Agreement”) is
made effective as of this 17th day of May, 2010 (the “Effective Date”) by and
between Global Aviation Holdings, Inc., a Delaware corporation (the “Company”),
and Brian T. Bauer (“Executive”).

 

WHEREAS, Executive and Company desire to
enter into an employment agreement which sets forth the terms and conditions
for Executive’s employment with the Company;

 

NOW, THEREFORE, in consideration of the
foregoing recital and of the mutual covenants set forth herein, and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

1.             Agreement to Employ and
Acceptance.  The Company
hereby employs Executive, and Executive hereby accepts employment with the
Company, in each case, on the terms and subject to the conditions set forth
herein.

 

2.             Defined Terms.  In addition to terms defined elsewhere
herein, please see Attachment A.

 

3.             Term of Employment.  The term of this Agreement begins on the
Effective Date and continues until terminated by either party (the “Term”).  The Company and Executive acknowledge and
agree that Executive’s employment is on an at-will basis, and, accordingly,
either the Company or Executive may terminate the employment relationship at
any time for any reason, or no reason, with or without cause.

 

If Executive elects to resign from Executive’s
employment under this Agreement (whether for Cause, for Good Reason or Without
Cause or Good Reason), Executive agrees to provide the Company before and
following the effective date of such resignation (and with no additional
compensation or benefits beyond that provided for in this Agreement) with such
assistance as the Company reasonably may request so as to accomplish and
effective and orderly transition of Executive’s employment responsibilities,
work files and documents and open projects and assignments to a replacement
employee for Executive.

 

4.             Position and
Responsibilities.  During the
Term, Executive will serve as Executive Vice President and Chief Commercial
Officer and in such additional executive positions as the Company may designate
from time to time during the Term. 
Executive agrees to perform all of the duties and responsibilities
associated with such position(s) as well as all other duties and
responsibilities that may be assigned to Executive from time to time by the
Chief Executive Officer.

 

Executive will devote his or her full working
time, attention, energies and skills exclusively to the business and affairs of
the Company; will exercise the highest degree of loyalty and the highest
standards of conduct in the performance of Executive’s duties; will not except
as noted herein, engage in any other business activity, whether or not such
business activity is pursued for gain, profit or other pecuniary advantage,
without the express written consent of the Company; and will not take any
action that deprives the Company of any business 

 

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opportunities or otherwise act in a manner that conflicts with the best
interests of the Company or that is detrimental to the business of the Company.

 

Nothing contained herein shall preclude
Executive from (a) investing Executive’s personal assets in such form or manner
as will not require Executive’s services in any capacity in the operations and
affairs of the businesses in which such investments are made, or (b) participating
in charitable or other not-for-profit activities as long as such activities do
not interfere with Executive’s work for the Company.

 

5.             Compensation and Benefits.  During the term, the Executive shall be
entitled to the following compensation and benefits:

 

5.1           Annual Base Salary.  The Company shall pay Executive a base salary
at the annual rate of no less than THREE HUNDRED TWENTY-FIVE THOUSAND DOLLARS
($325,000.00) (the “Base Salary”) unless and until Executive and the Company
agree to a different amount, in which event the new agreed amount shall be the
Base Salary from the effective date of that agreed adjustment.  The Base Salary will be reviewed annually to
determine any appropriate upward adjustments at the discretion of the Board of
Directors.

 

5.2           Incentive Compensation.  Incentive Compensation.  Executive will be given the opportunity to
earn an annual incentive bonus calculated on 75% of his or her Base Salary in
accordance with the annual incentive plan generally applicable to the Company’s
executive officers, as the same may be in effect from time to time (the “Annual
Bonus”).  For the sake of clarity, the
Executive’s Annual Bonus may be less or more than the percentage stated in the
preceding sentence depending upon the financial targets actually achieved by
the Company in any given year.

 

5.3           Eligibility for Equity
Awards.  Effective on the one-year
anniversary of the Effective Date, Executive shall be entitled to participate
in any stock option, restricted stock, performance share, performance unit or
other equity based long-term incentive compensation plan, program or arrangement
generally made available to executive officers of the Company and as in effect
from time to time, including any amendments or changes made thereto (the “Equity
Program”).  Prior to the one-year
anniversary of the Effective Date, unless otherwise determined by the Company
in its sole discretion, Executive will not be entitled to participate in any
grant or award under any of the currently existing Equity Programs, as may be
amended from time to time.  However, in
the event the Company adopts one or more new Equity Programs after the
Effective Date, Executive shall not be disqualified by reason of his employment
for less than one year.

 

5.4           Employee Benefits.  Executive will be eligible to participate in
each health and welfare benefit plan sponsored or maintained by the Company and
made available generally to its executive officers, subject to the eligibility
requirements and other terms and conditions of the benefit programs and
plans.  Nothing contained in this Section shall
obligate the Company to institute, maintain or refrain from changing, amending
or discontinuing any employee health and welfare benefit plan or program, so
long as such changes are similarly applicable to other similarly situated
executive officers.

 

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5.5           Paid Time Off.  Executive shall be ‘entitled to no less than
twenty (20) days of vacation and no less than seven (7) days of sick leave
per year (vacation and sick leave collectively the Executive’s annual “PTO”)
otherwise in accordance with Company policy as the same is in effect from time
to time.

 

5.6           Perquisites.  Executive shall be entitled to receive such
perquisites as are generally provided to other executive officers of the
Company in accordance with the then current policies and practices of the
Company.

 

5.7           Travel Benefits.  Executive shall be entitled to positive space
passes on Company airlines and, to the extent available, any carrier with whom
the Company has a reciprocal pass arrangement in place at the time.  Such pass privileges shall include the
Executive’s spouse and eligible children to the extent consistent with the
Company’s travel benefits program as the same is in effect from time to time.

 

5.8           Reimbursement of Expenses;
In-Kind Benefits.  All
expenses eligible for reimbursements described in this Agreement must be
incurred by the Executive during the Term of this Agreement to be eligible for
reimbursement.  All in-kind benefits
described in this Section 5 must be provided by the Company during the
Term of this Agreement or, where applicable, during the eligible person’s
lifetime.  The amount of reimbursable
expenses incurred, and the amount of in-kind benefits provided, in one taxable
year shall not affect the expenses eligible for reimbursement, or in-kind
benefits provided, in any other taxable year. 
Each category of reimbursement shall be paid as soon as administratively
practicable, but in no event shall any such reimbursement be paid after the
last day of the calendar year following the calendar year in which the expense
was incurred.  Neither rights to
reimbursement nor in-kind benefits are subject to liquidation or exchanges for
other benefits.

 

5.9           Changes to Compensation
Structure.  The Board
of Directors, or any appropriate committee thereof, may initiate changes to the
compensation structure that may impact Executive’s compensation.  As long as such changes are applicable
broadly and equitably to all Executive officers, such changes shall not
constitute Good Reason for purposes of Section 6.3 or otherwise constitute
a breach of this Agreement.

 

5.10         Signing Bonus.  Executive shall receive a one-time signing
bonus, subject to applicable taxes and withholdings, in the amount of ONE
HUNDRED THOUSAND DOLLARS ($100,000.00) to be paid with your regularly scheduled
pay (the “Signing Bonus”) after the Effective Date.  In the event Executive voluntarily resigns
from the Company within the first twelve (12) months from the Effective Date,
Executive agrees to repay the Signing Bonus, prorated for each full month the
Executive has been employed, to the Company within thirty (30) days after the
Executive’s voluntary separation.

 

5.11         Relocation Expenses.  The Company shall reimburse the Executive for
reasonable and customary relocations expenses from Dayton, Oregon to the Atlanta,
Georgia area to include such customary expenses as packing and shipment of
household goods, shipment of two automobiles, storage of household goods (for a
maximum of two (2) months), temporary housing costs (for a maximum of two (2) months)
and transportation, lodging and meal expenses for Executive and his spouse for
two house hunting trips.

 

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6.             Termination of Employment.

 

6.1           Grounds for Termination.  Executive’s employment may be terminated, (a) by
the Company for Cause, Without Cause, or due to Executive’s Disability or death
or (b) by Executive with or without Good Reason. In the event that
Executive’s employment with the Company is terminated by either party for any
reason, no termination benefits or other payments shall be payable to or in
respect of Executive pursuant to this Agreement, except as specifically
provided in this Section 6.

 

6.2           Notice of Termination.  Prior to any termination by the Company or
Executive for any reason (other than due to Executive’s death), a Notice of
Termination shall be delivered by the Company or Executive, as the case may be,
to the other party to this Agreement. 
The Notice of Termination shall specify the effective Date of
Termination and the reason for termination.

 

6.3           Payments Upon Termination
Without Cause or for Good Reason.  If Executive’s employment with the Company is
terminated by the Company Without Cause or by Executive for Good Reason, the
obligation to pay and provide to Executive compensation and benefits under this
Agreement shall immediately terminate, except:

 

(a)           Executive shall be paid
severance compensation in a lump sum equal to twelve (12) months (or twenty
four (24) months for Termination Without Cause within ninety (90) days
following a Change in Control), of: (i) Base Salary and (11) the target
Annual Bonus in effect at the time of termination.  Any portion of the Annual Bonus that is
earned and already paid in the calendar year of Executive’s termination, will
be deducted from this severance compensation. 
The severance compensation will be paid to Executive in a lump sum
within thirty (30) days following the Executive’s Separation from Service on or
after the Executive’s Date of Termination;

 

(b)           Executive shall be
reimbursed for the cost of obtaining COBRA health continuation coverage under
the Company’s group health plan for the lesser of (i) eighteen (18) months
of such coverage, (11) until the Executive obtains comparable health coverage
for himself or herself and his or her eligible dependents, or (11i) the period
of coverage to which the Executive is entitled under Section 4980B(f)(2)(B) of
the Internal Revenue Code;

 

(c)           Executive shall also be
provided the sum of: (i) Executive’s full Base Salary through the Date of
Termination, to the extent not previously paid; (11) payment for his or
her unused PTO as of the Date of Termination; and (11i) any benefits
accrued and payable to Executive under any applicable employee benefit plan of
the Company or its Affiliates in which Executive was a participant during the
Term, including the travel benefits pursuant to Section 5.7, subject in
each such case to the applicable terms and conditions of such plans as in
effect from time to time (such amounts 

 

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under clauses (i), (11), and (11i) of this Section 6.3(c),
collectively, the “Accrued Obligations”);

 

(d)           All outstanding stock
options, whether or not then exercisable, shall become fully vested and
exercisable and the restrictions on any outstanding restricted stock shall
lapse with the condition that all such options will expire at the earlier of (i) the
first. anniversary of the Date of Termination or (11) the maximum option term
as set forth by the applicable option award;

 

(e)           Executive shall be entitled
to lifetime positive space passes on the Company’s airlines and, to the extent
available, any carrier with whom the Company has a reciprocal pass arrangement
in place at the time.  Such pass
privileges shall include the Executive’s spouse and eligible children to the
extent consistent with the Company’s travel benefits program as the same is in
effect from time to time; and

 

(f)            To the extent. that the
severance compensation provided for in this Section 6.3 constitute
payments of “deferred compensation” to a “specified employee” within the
meaning of Internal Revenue Code Section 409A9(a)(2)(B)9(i), any such
payments due during the first six months following the Executive’s Date of
Termination will be delayed and will be paid to Executive on the first day of
the seventh month following Executive’s Date of Termination and the travel
benefits shall not be provided until the first day of the seventh month
following Executive’s Date of Termination. 
Other than the foregoing, the Company shall have no further obligations
to Executive under this Agreement

 

6.4           Termination Due to Death.  If Executive dies during the Term, this
Agreement shall terminate on the date of the Executive’s death.  Upon the death of Executive, the obligation
to pay and provide to Executive compensation and benefits under this Agreement
shall immediately terminate, except:

 

(a)           Executive’s estate shall be
paid the Accrued Obligations plus the continuation of Base Salary payments for
an additional three (3) months immediately following the date of the
Executive’s death;

 

(b)           for an additional three (3) month
following the date of Executive’s death, the Company shall reimburse Executive’s
spouse and participating dependants for the cost of obtaining COBRA medical and
dental continuation coverage under the Company’s group health plan;

 

(c)           for an additional twelve
(12) months immediately following the Executive’s death, Executive’s spouse and
eligible dependents shall continue to be provided the travel benefits pursuant
to Section 5.7;

 

(d)           All outstanding stock
options, whether or not then exercisable, shall become fully vested and
exercisable and the restrictions. on any 

 

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outstanding restricted stock shall lapse with
the condition that all such options will expire at the earlier of (i) the
first anniversary of the Date of Termination or (11) the maximum option term as
set forth by the applicable option award; and

 

(e)           Other than the foregoing,
the Company shall have no further obligations to Executive (or Executive’s
estate, heirs, executors, administrators and personal representatives) under
this Agreement.

 

6.5           Termination Due to
Disability.  If
Executive suffers a Disability, the Company shall have the right to terminate
this Agreement and Executive’s employment with the Company following expiration
of the notice period set forth in the Notice of Termination, which shall be no
less than six (6) months after the date the Company determines Executive
to be subject to a Disability.  Upon the
termination of this Agreement because of Disability; the obligation to pay and
provide to Executive compensation and benefits under this Agreement shall
immediately terminate, except:

 

(a)           All outstanding stock
options, whether or not then exercisable, shall become fully vested and
exercisable and the restrictions on any outstanding restricted stock shall
lapse with the condition that all such options will expire at the earlier of (i) the
first anniversary of the Date of Termination or (11) the maximum option term as
set forth by the applicable option award;

 

(b)           In addition, Executive shall
be entitled to obtain payment from the insurer(s) of such payments as
Executive may be entitled to receive under any long-term disability insurance
policy or policies maintained by the Company with third party insurers and
under which Executive is insured; and

 

(c)           Executive shall be entitled
to lifetime positive space passes on the Company’s airlines and, to the extent
available, any carrier with whom the Company has a reciprocal pass arrangement
in place at the time.  Such pass
privileges shall include the Executive’s spouse and eligible children to the
extent consistent with .the Company’s travel benefits program as the same is in
effect from time to time.

 

6.6           Termination For Cause.  At any time during the Term, the Company may
terminate this Agreement and Executive’s employment with the Company for “Cause”
as provided in this Section 6.6. 
Upon termination of Executive’s employment by the Company for Cause, the
obligation to payor provide Executive compensation and benefits (including
travel benefits under Section 5.7) under this Agreement shall terminate,
except:

 

(a)           Executive shall be paid the
Accrued Obligations;

 

(b)           Executive shall forfeit the
Annual Bonus earned in the year in which the Termination for Cause occurred;

 

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(c)           all outstanding stock
options which are not exercisable shall be forfeited; and

 

(d)           all restricted stock as to
which restrictions have not lapsed shall be forfeited.

 

6.7           Termination by Executive
Without Good Reason.  Upon
termination of Executive’s employment by Executive without Good Reason, all
obligations to pay or provide Executive compensation and benefits under this
Agreement shall terminate, except Executive shall be paid the Accrued
Obligations.

 

7.             Severance Release.  Executive acknowledges and agrees that as a
condition to receiving any of the severance compensation pursuant to Section 6.3
of this Agreement (such severance compensation being collectively referred to
as the “Severance Compensation”), Executive shall execute and deliver to
Company a Release Agreement in form and substance reasonably satisfactory to
the Company pursuant to all of which subsidiaries and Executive releases and
waives any and all claims against the Company and all of their subsidiaries and
Affiliates and its and their shareholders, directors, officers and employees
arising out of this Agreement, Executive’s employment with the Company,
Executive’s work for the Company or any of its Affiliates and/or the
termination of Executive’s employment with the Company; provided, however, that
such Release Agreement shall not affect or relinquish:

 

(a)           any vested rights Executive
may have under any insurance or other employee benefits plans sponsored by the
Company;

 

(b)           any claims for salary or
other compensation earned by Executive prior to the employment termination
date;

 

(c)           any claims for reimbursement
of ,business expenses incurred prior to the employment termination date;

 

(d)           any rights to Severance
Compensation; or

 

(e)           Executive’s rights to
indemnification pursuant to Section 11 of this Agreement or by law.

 

In the event Executive dies during the period Executive is receiving
any cash Severance Compensation, the Company’s obligation to pay such Severance
Compensation shall not terminate, and the unpaid portion of such Severance
Compensation shall be paid in a lump sum to Executive’s estate within thirty
(30) days following the death of the Executive.

 

8.             Resignation as Officer
and/or Director Upon Employment Termination.  In the event Executive’s employment with the
Company terminates for any reason (including, without limitation, pursuant to
Sections 6.3 through 6.7 herein), Executive agrees and covenants that Executive
will immediately resign any and all positions, including, without limitation,
as an officer and/or member of the Board of Directors or any other governing
boards, Executive may hold with the Company or any of its Affiliates.

 

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9.             No Duplication.  Executive acknowledges that, unless otherwise
provided for in any policy or plan governing severance benefits for employees
of the Company, including Executive, Executive shall be entitled only to the Severance
Compensation as a severance benefit related to Executive’s employment under
this Agreement.

 

10.           Non-Disclosure.  Executive acknowledges that during the course
of Executive’s employment with the Company Executive will be creating, making
use of, acquiring, and/or adding to confidential information relating to the
business and affairs of the Company (and its Affiliates), which information
will include, without limitation, procedures, methods, manuals, lists of
customers, suppliers and other contacts, sales and other reports, marketing
plans, business plans, financial data, and personnel information).  Executive covenants and agrees that Executive
shall not, at any time during Executive’s employment with the Company or
thereafter at any time, directly or indirectly, use, divulge or disclose for
any purpose whatsoever the Company (or its Affiliates) confidential information
or trade secrets, except in the course of Executive’s work for and on behalf of
the Company (or its Affiliates).  During
Executive’s employment by the Company, any inventions, new devices, or
procedures, as well as any patent, copyright or trademark applications filed,
or patents, copyrights or trademarks obtained, as a result of Executive’s
efforts on behalf of the Company (or any of its Affiliates) shall belong and
inure to the exclusive benefit of the Company. 
Upon the termination of Executive’s employment with the Company, or at
the Company’s request, Executive shall immediately deliver to the Company any
and all records, documents, or electronic data (in whatever form or media), and
all copies thereof, in Executive’s possession or under Executive’s control,
whether prepared by Executive or others, containing confidential information or
trade secrets relating to the Company (or its Affiliates).  Executive acknowledges and agrees that
Executive’s obligations under this Section 10 shall survive the expiration
or termination of this Agreement and the cessation of Executive’s employment
with Company for whatever reason.

 

11.           Restrictive Covenants.  Executive acknowledges that in connection
with Executive’s employment with the Company, Executive will provide
executive-level services that are of a unique and special value and that
Executive will be entrusted with confidential and proprietary information
concerning the Company and its Affiliates. 
Executive further acknowledges that the Company and its Affiliates are
engaged in highly competitive businesses and that the Company and its
Affiliates expend substantial amounts of time, money and effort to develop
trade secrets, business strategies, customer relationships employee
relationships and goodwill.  Therefore,
as an essential part of this Agreement, Executive agrees and covenants to
comply with the following restrictive covenants.

 

11.1         Non-Competition.  During the term of Executive’s employment
with the Company under this Agreement and thereafter during the one (1) year
period following termination of employment, Executive will not provide services
substantially similar to those Executive provides to the Company (whether as an
employee, independent contractor, consultant, partner, director, shareholder,
joint venture, investor or any other type of participant), or use or permit
Executive’s name to be used in, any business conducted (or sought to be
conducted by) any existing or planned U.S. certificated air carrier that
derives (or seeks to derive) at least 33% of its revenues through a combination
of (a) Commercial and Military Passenger and Cargo Charter, (b) ACMI
Passenger and Cargo and (c) business on behalf of the U.S. Department of
Defense.

 

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Notwithstanding the provisions of Sections
11.1, hereof, the parties agree that Executive is not prohibited from owning
for investment purposes securities of any public company provided: (i) any
increase in Executive’s ownership. of such securities after the date hereof
shall be subject to approval of the Board of Directors, which approval shall
not be unreasonably withheld; and (11) such ownership does not exceed three
percent (3%) of any class of securities of such public company.

 

11.2         Non-Solicitation of
Employees.  During the
term of Executive’s employment under this Agreement and for a period of one (1) year
immediately after the termination of such employment, Executive will not
solicit, recruit, hire, employ or attempt to hire or employ or any person who
is employed by the Company or urge, influence, induce or seek to induce any
employee of the Company to terminate such employee’s relationship with the
Company.

 

11.3         Non-Interference With
Contractors and Vendors. 
During the term of Executive’s employment under this Agreement and for a
period of one (1) year immediately after the termination of such
employment, Executive will not urge, induce or seek to induce the Company’s
independent contractors, subcontractors, consultants, vendors, suppliers or lessors
with whom he or she had material contact within two (2) years preceding
his or her Date of Termination to terminate their relationship with, or
representation of, the Company or to cancel, withdraw, reduce, limit, or in any
manner modify any of such person’s or entity’s business with, or representation
of, the Company.

 

11.4         Nondisparagement.  To the extent permitted by law, Executive
shall not make, publish or state, or cause to be made, published or stated, any
defamatory or disparaging statement, writing or communication pertaining to the
character, reputation, business practices, competence or conduct of the
Company, its subsidiaries, stockholders, directors, officers, employees,
agents, representatives or successors.

 

11.5         Direct or Indirect Activities.  Executive acknowledges and agrees that the
covenants contained in Sections 10 and 11 and prohibit Executive from engaging
in certain activities directly or indirectly, whether on Executive’s own behalf
or on behalf of any other person. or entity, and regardless of the capacity in
which Executive is acting, including without limitation as ail employee,
director, independent contractor, owner, partner, officer, agent, consultant,
or advisor.

 

11.6         Survival of Restrictive
Covenants.  Executive
acknowledges and agrees that Executive’s obligations under Sections 10 and 11
of this Agreement shall survive the expiration or termination of this Agreement
and the cessation of Executive’s employment with the Company for whatever
reason.

 

11.7         Severability, Modification
of Restrictions.  The
covenants and restrictions in Sections 10 and 11 of this Agreement are separate
and divisible, and to the extent any covenant, provision or portion of Sections
10 and 11 of this Agreement is determined to be unenforceable or invalid for
any reason, such unenforceability or invalidity shall not affect the
enforceability or validity of the remainder of Sections 10 and 11 of this
Agreement.  If any particular covenant,
provision or portion of Sections 10 and 11 is determined to be unreasonable 

 

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or unenforceable for any
reason, such covenant, provision or portion thereof shall automatically be
deemed refonned such that the contested covenant, provision or portion will
have the closest effect permitted by applicable law to the original form and
shall be given effect and enforced as so reformed to whatever extent would be
reasonable and enforceable under applicable law.  The parties agree that any court interpreting
any of the restrictions and covenants contained in Sections 10 and 11 of this
Agreement shall, if necessary and permissible under applicable law, reform any
such covenant to make it enforceable under applicable law.

 

12.           Remedies.  Executive recognizes that a breach or threatened
breach by Executive of Sections 10 and 11 of this Agreement will give rise to
irreparable injury to the Company and that money damages will not be adequate
relief for such injury and, accordingly, Executive agrees that the Company
shall be entitled to obtain injunctive relief, including, but not limited. to,
temporary restraining orders, preliminary injunctions and/or permanent
injunctions, without having to post any bond or other security, to restrain or
prohibit such breach or threatened breach, in addition to any other legal
remedies which may be available, including without limitations, after
reasonable notice and failure to cure, the cessation of payments and benefits
under this Agreement and recovery of money damages.

 

13.           Indemnification.  The Company will indemnify Executive against
all Liability and Expense that may be incurred by Executive in connection with
or resulting from any claim as specified in Attachment B.

 

14.           Assignment.

 

14.1         Assignment by the Company.  The Company shall have the right to assign
this Agreement, and this Agreement shall inure to the benefit of, and may be
enforced by, any and all successors and assigns of the Company, including
without limitation by asset assignment, stock sale, merger, consolidation or
other corporate reorganization.

 

14.2         Non-Assignment by Executive.  The services to be provided by Executive to
the Company hereunder are personal to Executive, and Executive’s duties may not
be assigned by Executive.

 

15.           Notice.  Any notice required or permitted under this
Agreement shall be in writing and either delivered personally or sent by
nationally recognized overnight courier, express mail, or certified or
registered mail, postage prepaid, return receipt requested, at the. following
respective address unless the party notifies the other party in writing of a
change of address:

 

If
to the Company:

 

Global
Aviation Holdings, Inc.

101
World Drive

Peachtree
City, GA 30269

Attention:
General Counsel

 

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If
to Executive:

 

Brian
T. Bauer

6000
SE Reid Lane

Dayton,
OR 97114

 

A notice delivered personally shall be deemed
delivered and effective as of the date of delivery.  A notice sent by overnight courier or express
mail shall be delivered and effective one (1) day after it is deposited
with the postal authority or commercial carrier.  A notice sent by certified or registered mail
shall be deemed delivered and effective two (2) days after it is deposited
with the postal authority.

 

16.           Miscellaneous.

 

16.1         Entire Agreement.  This Agreement, unless otherwise expressly
stated herein, supersedes any prior employment agreements or understandings,
oral or written, between the parties hereto, with respect to the subject matter
hereof, and constitutes the entire agreement of the parties with respect
thereto.

 

16.2         Modification.  This Agreement shall not be varied, altered,
modified, canceled, changed, supplemented or in any way amended except by
mutual agreement of the parties in a written instrument executed by the
Executive and the Company.

 

16.3         Counterparts.  This Agreement may be executed in one (1) or
more counterparts, each of which shall be deemed to be an original, but all of
which together will constitute one and the same Agreement.

 

16.4         Tax Withholding.  The Company may withhold. from any
compensation or benefits payable under this Agreement all federal, state, city,
or other taxes as may be required pursuant to any law or governmental
regulation or ruling.

 

16.5         Contractual Rights to
Benefits.  Nothing
herein contained shall required or be deemed to require, or prohibit or be
deemed to prohibit, the Company to segregate, earmark or otherwise set aside
any funds or other assets, in trust or otherwise, to provide for any payments
to be made or required hereunder.

 

16.6         Employment Policies.  Executive agrees to abide by any employment rules or
policies applicable to the Company’s employees generally that the Company
currently has or may adopt, amend or implement from time to time during
Executive’s employment under this Agreement to the extent consistent with the
terms herein.  In the event of any
conflict between this Agreement and the Company’s policies, the Agreement will
control.

 

16.7         No Waiver.  Failure to insist upon strict compliance with
any of the terms, covenants or conditions of this Agreement shall not be deemed
a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any right or power hereunder at anyone or more times be
deemed a waiver or relinquishment of such right or power at any other time or
times.

 

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16.8         Section 409A Standards.  The Agreement and all forms of compensation
and benefits to be provided under the Agreement shall be interpreted, applied,
and affected in a manner consistent with the standards for nonqualified
deferred compensation plans established by Internal Revenue Code Section 409A
and its interpretive regulations (the “Section 409A Standards”).  The Company and the Executive mutually agree
that if any payment or benefit due to the Executive under this Agreement is
deemed to be subject to Section 409A of the Internal Revenue Code, the
Company shall make such amendments to the Agreement as the Company, in its sole
discretion, deems necessary to ensure that the Agreement and the compensation
and benefits provided hereunder comply with, or are not subject to, Section 409A.  To the extent that any terms of the Agreement
provide for payments that would subject Executive to gross income inclusion,
interest, or additional tax pursuant to Internal Revenue Code Section 409A,
those terms are to that extent superseded by the applicable Section 409A
Standards.

 

16.9         Governing Law; Choice of
Forum.  To the extent not preempted by
federal law, the provisions of this Agreement shall be construed and enforced
in accordance with the laws of the Slate of Georgia, notwithstanding any state’s
choice-of-law or conflicts-of-law rules to the contrary.  This Agreement is intended, among other
things, to supplement the provisions of the Uniform Trade Secrets Act, as
amended from time to time, and the duties Executive owes to the Company under
the common law, including, but not limited to, the duty of loyalty.  The parties agree that any legal action
relating to this Agreement shall be commenced und maintained exclusively before
any appropriate state court of record in Fayette County, Georgia, or in the
United States District Court for Northern District of Georgia, Atlanta
Division, and the parties hereby irrevocably consent and submit to the
jurisdiction and venue of such courts and waive any right to challenge or
otherwise object to personal jurisdiction or venue in any action commenced or
maintained in such courts.

 

16.10       Service Credit.  Executive will be given credit for his/her
years of service with all predecessor employers for purposes of all benefit and
seniority plans and programs of the Company.

 

IN WITNESS WHEREOF, the Company and Executive
have executed this Agreement, as of the Effective Date.

 

 

	
  Global
  Aviation Holdings, Inc.

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark M. McMillin

  	
   

  	
  /s/ Brian T. Bauer

  
	
  Name:
  Mark M. McMillin

  	
   

  	
  Name: Brian T. Bauer

  
	
  Sr. VP & General Counsel

  	
   

  	
   

  
				

 

12

 

ATTACHMENT A - DEFINED TERMS

 

In addition to terms defined elsewhere herein, the following terms have
the following meanings when used in this Agreement:

 

(a)           “Affiliate” of a person or
other entity means a person or other entity that directly or indirectly
controls, is controlled by, or is under common control with the person or other
entity specified.

 

(b)           “Board of Directors” means
the Board of Directors of Global Aviation Holdings, Inc.

 

(c)           “Cause” means the occurrence
of one or more of the following events: (i) Executive’s gross neglect of
Executive’s employment duties; (ii) Executive’s conviction of, pleading
guilty to, or pleading nolo contendere or its equivalent to, a felony or any
crime involving moral turpitude; (iii) Executive’s engaging in any illegal
conduct or willful misconduct in the performance of Executive’s employment
duties; (iv) Executive’s engaging in any fraudulent conduct in Executive’s
dealings with, or on behalf of, either the Company (or its Affiliates); (v) Executive’s
failure or refusal to follow the lawful written instructions or directions of
the officer to which Executive directly reports, the Chief Executive Officer,
or the Board of Directors, if such failure or refusal continues for a period of
seven (7) calendar days after the Board of Directors delivers to Executive
a written notice stating the instructions which Executive has failed or refused
to follow, with specific reference to this section; (vi) Executive’s
knowing breach of any of Executive’s material obligations under Section 10
or 11 of this Agreement; (vii) Executive’s misuse of alcohol or unlawful
drugs which interferes materially with the adequate performance of Executive’s
employment duties for the Company; or (viii) Executive’s material failure
or refusal to the provisions of Section 4 of this Agreement and failure to
cure such noncompliance within thirty (30) days following notice from the Board
of Directors to the Executive of such noncompliance.

 

(d)           “Change in Control” means
and shall be deemed to have occurred upon the occurrence of anyone or more of
the following:

 

(i)            consummation of a sale or
other disposition of all or substantially all of the assets of Global Aviation
Holdings, Inc. or of all of the issued and outstanding capital stock of
Global Aviation Holdings, Inc.; or

 

(ii)           the acquisition by any
individual, entity, or group (excluding any individual, entity or group which
now has beneficial ownership of more than fifty percent (50%) of the
outstanding equity interests of Global Aviation Holdings, Inc.) of
beneficial ownership of more 

 

A-1

 

than fifty percent (50%) of the outstanding
equity of interests of Global Aviation Holdings, Inc.; or

 

(iii)          the acquisition by any
individual, entity, or group (excluding Matlin Patterson) of a controlling
interest (i.e. “golden share”) that would allow such individual, entity or
group to exercise effective control of and/or veto power with respect to the
Company; or

 

(iv)          solely for purposes of
triggering the period during which Executive may terminate this Agreement for “Good
Reason” pursuant to Section 6.3, a merger, consolidation, acquisition or
other business combination.

 

(e)           “Date of Termination” means (i) if
Executive’s employment is terminated by death, the date of Executive’s death, (ii) if
Executive’s employment is terminated by the Company for Cause, the date on
which Notice of Termination is given or, if later, the effective date of
termination specified in the Notice of Termination, (iii) if Executive’s
employment is terminated by the Company Without Cause, or by Executive for any
reason, the date specified in the applicable Notice of Termination, (iv) if
Executive’s employment is terminated by the Company due to Executive’s
Disability, the effective date of termination specified in the applicable
Notice of Termination which shall be no earlier than six (6) month’s after
the date the Company determines the Executive to be subject to a Disability,
and (v) if Executive’s employment is terminated by the Executive with or
without Good Reason, the effective date of termination specified in the
applicable Notice of Termination, which shall no earlier than fifteen (15) days
after the date on which the Notice of Termination is given.

 

(f)            “Disability” means either (i) when
Executive is deemed disabled in accordance with the long-term disability
insurance policy or plan, if any, of the Company in effect at the time of the
illness or injury causing the disability and under which Executive is insured,
or if no such policy or plan is in effect, (ii) the inability of
Executive, because of injury, illness, disease or bodily or mental infirmity as
determined by a physician reasonably acceptable to the Company, to perform the
essential functions of Executive’s job (with or without reasonable
accommodation) for more than one hundred eighty (180) days during any period of
twelve (12) consecutive months.

 

(g)           “Good Reason” means:

 

(i)            the occurrence, without
Executive’s consent, of any of the following events:

 

A-2

 

i.              material
reduction in the nature or scope of Executive’s authority or duties from those
contemplated by this Agreement; or

 

ii.             a material
decrease in Executive’s compensation (except as provided for in Section 5.9
of this Agreement); or

 

iii.            the relocation
of the Company’s principal office, or the relocation of the Executive’s own
office location (as assigned to Executive by the Company) to a location more
than fifty (50) miles from the current Peachtree City, Georgia location.

 

(ii)           that Executive shall have
given the Company written notice of the event or events constituting Good
Reason within thirty (30) days following the occurrence of the event(s) (or
if later the Executive’s knowledge of occurrence of the event(s));

 

(iii)          that the Company shall have
failed to cure such event or events within thirty (30) business days after
receipt of such notice; and

 

(iv)          that Executive’s employment
terminates within thirty (30) business days after such failure to cure.

 

(h)           “Notice of Termination”
means a written notice that Executive or the Company, as the case may be, is
electing to terminate Executive’s employment with the Company, stating the
proposed effective date of the termination and, if applicable, setting forth in
reasonable detail the circumstance claimed to provide the basis for the
termination.

 

(i)            “Separation from Service”
means either that (i) the Executive has ceased to perform any services for
the Company and all affiliated companies that, together with the Company,
constitute the “service recipient” within the meaning of Section 409A of
the Internal Revenue Code and the regulations thereunder (collectively, the “Service
Recipient”) or (ii) the level of bona fide services the Executive performs
for the Service Recipient after a given date (whether as an employee or as an independent
contractor) permanently decreases (excluding a decrease as a result of military
leave, sick leave, or other bona fide leave of absence if the period of such
leave does not exceed six months, or if longer, so long as the Executive
retains a right to reemployment with the Service Recipient under an applicable
statute or by contract) to no more than twenty percent (20%) of the average
level of bona fide services performed for the Service Recipient (whether as an
employee or an independent contractor) over the immediately preceding 36-month
period.

 

A-3

 

(j)            “Without Cause” means a
termination of Executive’s employment by the Company other than for Cause.  For purposes of clarification, a termination
of the Executive’s employment due to death or Disability will not be considered
a termination of employment by the Company Without Cause.

 

A-4

 

ATTACHMENT B — INDEMNIFICATION

 

1.             The Company
shall indemnify Executive against all Liability and Expense that may be
incurred by Executive in connection with or resulting from any Claim to the
fullest extent authorized or permitted by law, as the same exists or may
hereafter be amended (but in the case of any such amendment, only to the extent
that such amendment permits the Company to provide broader indemnification
rights than such law permitted the Company to provide prior to such amendment),
or otherwise consistent with the public policy of the State of Delaware.

 

2.             In furtherance
of the foregoing, and not. by way of limitation, Executive shall be indemnified
by the Company against all Liability and reasonable Expense that may be
incurred by Executive in connection with or resulting form any Claim, (a) if
Executive is Wholly Successful with respect to the Claim, or (b) if not
Wholly Successful, then if Executive is determined, as provided in either
Paragraph 6 or 7 below, to have acted in good faith, in what Executive
reasonably believed to be the best interests of the Company or at least not
opposed to its best interests and, in addition, with respect to any criminal
claim is determined to have had reasonable cause to believe that Executive’s
conduct was lawful or had no reasonable cause to believe that Executive’s conduct
was unlawful.  The termination of any
Claim, by judgment, order, settlement (whether with our without Court
approval), or conviction or upon a pleas of guilty or of nolo contendere, or
its equivalent, shall not create a presumption that Executive did not meet the
standards of conduct set forth in clause (b) of this Paragraph 2.

 

3.             The term “Claim”
as used in this Attachment B shall include every pending, threatened, or
completed claim, action, suit, or proceeding and all appeals thereof (whether
brought by or in the right of either of the Company or otherwise), civil,
criminal, administrative, or investigative, formal or informal, in which
Executive may become involved, as a party or otherwise:

 

(a)           by reason of Executive’s
being or having been an officer or employee of the Company, or

 

(b)           by reason of any action
taken or not taken by Executive in Executive’s capacity as an officer or
employee of either of the Company, whether or not Executive continued in such
capacity at the time such Liability or Expense shall have been incurred.

 

4.             The terms “Liability”
and “Expense” as used in this Attachment B shall include, but shall not be
..limited to, counsel fees and disbursement and other amounts of judgments,
fines, or penalties against (including excise taxes assessed with respect to an
employee benefits plan), and amounts paid in settlement by or on behalf of
Executive.

 

5.             The term “Wholly
Successful” as used in this Attachment B shall mean (1) termination of any
Claim, whether on the merits or otherwise, against Executive in question
without any finding of liability or guilt against him, (2) approval by a
court, with knowledge of the indemnity herein provided, of a settlement of any
Claim, or (3) the expiration of a reasonable period of time after the making
or threatened making of any Claim without the institution of the same, without
any payment or promise made to induce a settlement.

 

B-1

 

6.             If Executive is
claiming indemnification hereunder (other than if Executive has been Wholly
Successful with respect to any Claim), Executive shall be entitled to
indemnification (a) if special independent legal counsel, which may be
regular counsel of the Company, or other disinterested person or persons, in
either case selected by the Board of Directors (such counsel or persons
hereinafter called the “Referee”), shall deliver to the Company a written
finding that Executive has met the standards of conduct set forth in Paragraph
2(b) above, and (b) if the Board of Directors, acting upon such
written finding, so determines.  The
Board of Directors, if Executive is found to be entitled to indemnification
pursuant to the preceding sentence, shall also determine the reasonableness of
Executive’s Expenses, Executive, if requested, shall appear before the Referee,
answer questions that the Referee deems relevant and shall be given ample
opportunity to present to the Referee evidence upon which Executive relies for
indemnification.  The Company, at the
request of the Referee, shall make available facts, opinions, or other evidence
in any way relevant to the Referee’s findings that are within the possession or
control of the Company.

 

7.             If Executive is
claiming indemnification pursuant to Paragraph 6 above and if the Board of
Directors fails to select a Referee within a reasonable amount of time
following a written request of Executive for the selection of a Referee, or if
the Referee or the Board of Directors fails to make a determination under
Paragraph 6 above within a reasonable amount of time following the selection of
a Referee, Executive may apply for indemnification with respect to a Claim to a
court of competent jurisdiction, including a court in which the Claim is
pending against Executive.  On receipt of
an application, the court, after giving notice to the Company and giving the
Company opportunity to present to the court any information or evidence
relating to the Claim for indemnification that the Company deems appropriate,
may order indemnification if it determines that Executive is entitle to
indemnification with respect to the Claim because Executive met the standards
of conduct set forth in Paragraph 2(b) above.  If the court determines that Executive is
entitled to indemnification, the court shall also determine the reasonableness
of Executive’s Expenses.

 

8.             Expenses
incurred by Executive in defending any Claim shall be paid by the Company
promptly, in advance of the final disposition of such Claim, as such expenses
are incurred.  If Executive is determined
not to be entitled to indemnification, the Company may seek reimbursement.

 

9.             The rights of
indemnification and advancement of Expenses provided in this Attachment B shall
be in addition to any rights to which Executive may otherwise be entitled,
provided that he Company shall not be obligated to make any payment in
connection with a Claim to the extent Executive has received payment of such
amount from another source, including without limitation any insurer.

 

10.           The provisions
of this Attachment B shall be applicable to Claims made or commenced after the
date of this Agreement, whether arising from acts or omissions to act occurring
before or after the date of this Agreement.

 

11.           If this Section or
any portion hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify Executive as to
costs, charges and expenses (including attorney’s fees), judgments, fines and
amounts paid in 

 

B-2

 

settlement
with respect to any action, suit or proceeding, whether civil, criminal,
administrative or investigative, including an action by or in the right of the
Company, to the fullest extent permitted by an applicable portion of this Section that
shall not have been invalidated and to the fullest extent permitted by
applicable law.

 

B-3

 

Brian Bauer

Offer Letter

05/11/2010

 

STATEMENT OF ACKNOWLEDGEMENT/ACCEPTANCE

 

	
  Candidate:

  	
   

  	
  Brian Bauer

  
	
   

  	
   

  	
   

  
	
  Position:

  	
   

  	
  EVP, Chief Commercial Officer

  

 

“At Will” Employment

 

I understand that this offer of employment is not to be construed as a
contract of employment or as a promise by either Global Aviation Holdings, Inc.
(Global) or me of continued employment nor is it creating an implied or
contractual duty between Global and me. 
I understand that Global is strictly an “at will” employer, which means
Global reserves the right to terminate my employment with or without cause and
with or without notice for any or no reason. 
Likewise, I may terminate my employment with Global with or without
notice for any or no reason.

 

Even though during my employment I may receive promotions, raises,
commendations, or the like, or be subject to other employment guidelines, this “at
will” employment relationship will never be altered.  I further understand that no manager of
Global is authorized to make any representation that alters this “at will”
agreement.

 

Acknowledgement of Acceptance

 

I have read, fully understand, and agree to abide by the above terms,
statements, and conditions.  I am
acknowledging the information and am accepting the above offer as stated.  I also understand that any information
provided by me that is found to be false, incomplete, or misrepresented in any
respect will be sufficient cause to potentially discharge me from the employer’s
service whenever it is discovered.

 

	
  /s/ Brian T. Bauer

  	
   

  	
  5/17/10

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Date

  	
   

  	
  Anticipated Start Date

  

 

Sign and return this “Statement of Acknowledgment/Acceptance” by
scanning and emailing to chlles@glah.com or faxing to 770.632.8228.  Should we not receive notification of your
intention to accept this offer within three (3) business days, this offer
is automatically rescinded.  Please
retain a coy of this statement for your records.Exhibit
10.7

 

GLOBAL
AVIATION HOLDINGS, INC.

2009
LONG-TERM INCENTIVE PLAN FOR OUTSIDE DIRECTORS

 

 

GLOBAL
AVIATION HOLDINGS, INC.

2009 LONG-TERM INCENTIVE PLAN FOR
OUTSIDE DIRECTORS

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION I.        DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2  THE
  LONG-TERM INCENTIVE PLAN

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  PURPOSE OF THE PLAN

  	
   

  	
  4

  
	
  2.2

  	
   

  	
  STOCK SUBJECT TO THE PLAN

  	
   

  	
  4

  
	
  2.3

  	
   

  	
  ADMINISTRATION OF THE PLAN

  	
   

  	
  5

  
	
  2.4

  	
   

  	
  ELIGIBILITY AND LIMITS

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3  TERMS
  OF AWARDS

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  TERMS AND CONDITIONS OF ALL AWARDS

  	
   

  	
  5

  
	
  3.2

  	
   

  	
  TERMS AND CONDITIONS OF OPTIONS

  	
   

  	
  6

  
	
  3.3

  	
   

  	
  TERMS AND CONDITIONS OF STOCK
  APPRECIATION RIGHTS

  	
   

  	
  8

  
	
  3.4

  	
   

  	
  TERMS AND CONDITIONS OF STOCK AWARDS

  	
   

  	
  8

  
	
  3.5

  	
   

  	
  TERMS AND CONDITIONS OF DIVIDEND
  EQUIVALENT RIGHTS

  	
   

  	
  9

  
	
  3.6

  	
   

  	
  TERMS AND CONDITIONS OF PERFORMANCE
  AWARDS

  	
   

  	
  9

  
	
  3.7

  	
   

  	
  TERMS AND CONDITIONS OF RESTRICTED
  STOCK UNITS

  	
   

  	
  10

  
	
  3.8

  	
   

  	
  TREATMENT OF AWARDS ON TERMINATION OF
  SERVICE

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4  RESTRICTIONS
  ON STOCK

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  ESCROW OF SHARES

  	
   

  	
  10

  
	
  4.2

  	
   

  	
  RESTRICTIONS ON TRANSFER

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5  GENERAL
  PROVISIONS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  WITHHOLDING

  	
   

  	
  11

  
	
  5.2

  	
   

  	
  CHANGES IN CAPITALIZATION; MERGER;
  LIQUIDATION

  	
   

  	
  11

  
	
  5.3

  	
   

  	
  CASH AWARDS

  	
   

  	
  12

  
	
  5.4

  	
   

  	
  COMPLIANCE WITH CODE

  	
   

  	
  13

  
	
  5.5

  	
   

  	
  RIGHT TO TERMINATE EMPLOYMENT OR
  SERVICE

  	
   

  	
  13

  
	
  5.6

  	
   

  	
  NON-ALIENATION OF BENEFITS

  	
   

  	
  13

  
	
  5.7

  	
   

  	
  RESTRICTIONS ON DELIVERY AND SALE OF
  SHARES; LEGENDS

  	
   

  	
  13

  
	
  5.8

  	
   

  	
  LISTING AND LEGAL COMPLIANCE

  	
   

  	
  14

  
	
  5.9

  	
   

  	
  TERMINATION AND AMENDMENT OF THE PLAN

  	
   

  	
  14

  
	
  5.11

  	
   

  	
  CHOICE OF LAW

  	
   

  	
  14

  
	
  5.12

  	
   

  	
  EFFECTIVE DATE OF PLAN

  	
   

  	
  14

  
							

 

i

 

GLOBAL
AVIATION HOLDINGS, INC.

2009
LONG-TERM INCENTIVE PLAN FOR OUTSIDE DIRECTORS

 

SECTION I. 
DEFINITIONS

 

1.1          Definitions.  Whenever used herein, the
masculine pronoun will be deemed to include the feminine, and the singular to
include the plural, unless the context clearly indicates otherwise, and the
following capitalized words and phrases are used herein with the meaning
thereafter ascribed:

 

(a)           “Affiliate” means:

 

(1)           Any
Subsidiary;

 

(2)           An
entity that directly or through one or more intermediaries controls, is
controlled by, or is under common control with the Company, as determined by
the Company; or

 

(3)           Any
entity in which the Company has such a significant interest that the Company
determines it should be deemed an “Affiliate”, as determined in the sole
discretion of the Company.

 

(b)           “Award Agreement” means any written agreement, contract, or other
instrument or document as may from time to time be designated by the Company as
evidencing an Award granted under the Plan.

 

(c)           “Award Program” means a written program established by the Board
of Directors, pursuant to which Awards are granted under the Plan under uniform
terms, conditions and restrictions set forth in such written program.

 

(d)           “Awards”
means, collectively, Dividend Equivalent Rights, Options, Performance Awards,
Restricted Stock Units, Stock Appreciation Rights and Stock Awards.

 

(e)           “Board of Directors” means the board of directors of the Company.

 

(f)            “Change in Control” unless otherwise defined by the Board of
Directors in the applicable Award Agreement, means and shall be deemed to have
occurred upon the occurrence of any one or more of the following:

 

(1)           consummation
of a sale or other disposition of all or substantially all of the assets of the
Company or of all of the issued and outstanding capital stock of the Company;

 

 

(2)           the
acquisition by any individual, entity, or group (excluding any individual,
entity or group which now or, prior to such acquisition, has beneficial
ownership of more than fifty percent (50%) of the outstanding equity interests
of the Company) of beneficial ownership of more than fifty percent (50%) of the
outstanding equity interests of the Company; or

 

(3)           the
acquisition by any individual, entity, or group (excluding MatlinPatterson) of
a controlling interest (i.e. “golden share”) that would allow such individual,
entity, or group to exercise effective control of and / or veto power with
respect to the Company.

 

(g)           “Code” means the Internal Revenue Code of 1986, as amended.

 

(h)           “Company” means Global Aviation Holdings, Inc., a company
incorporated under the laws of the State of Delaware.

 

(i)            “Disability” unless otherwise defined by the Board of Directors in
the applicable Award Agreement or Award Program, means that condition described
in Code Section 22(e)(3), as amended from time to time.  In the event of a dispute, the determination
of Disability will be made by the Board of Directors and will be supported by
advice of a physician competent in the area to which such Disability relates.

 

(j)            “Dividend Equivalent Rights” means certain rights to receive cash
payments or Stock as described in Section 3.5.

 

(k)           “Exercise Price” means the exercise price per share of Stock
purchasable under an Option.

 

(l)            “Fair Market Value” refers to the determination of the value of a
share of Stock as of a date, determined as follows:

 

(1)           if the shares of Stock are actively traded on any national securities
exchange or any nationally recognized quotation or market system (including,
without limitation, NASDAQ), Fair Market Value shall mean the price at which
Stock shall have been sold on such date, as reported by any such exchange or
system selected by the Board of Directors on which the shares of Stock are then
traded;

 

(2)           if the shares of Stock are not actively traded but are reported on any
such exchange or system, Fair Market Value shall mean the price for the Stock
on such date, as reported by such exchange or system; or

 

(3)           if the shares of Stock are not traded or reported on any exchange or
system on such date, Fair Market Value shall mean the fair market value of a
share of Stock as determined by the Board of Directors taking into account such

 

2

 

facts and circumstances deemed to be material by
the Board of Directors to the value of the Stock in the hands of the
Participant.

 

Notwithstanding the foregoing, for purposes of Paragraph
(1), (2), or (3) above, the Board of Directors may use the closing price
as of the indicated date, the average price or value as of the indicated date
or for a period certain ending on the indicated date, the price determined at
the time the transaction is processed, the tender offer price for shares of
Stock, or any other method which the Board of Directors determines is
reasonably indicative of the fair market value of the Stock; provided, however,
that for purposes of granting Options or Stock Appreciation Rights, Fair Market
Value of Stock shall be determined in accordance with the requirements of Code Section 409A.

 

(m)          “Incentive Stock Option” means an incentive stock option within
the meaning of Section 422 of the Internal Revenue Code.

 

(n)           “Option” means a nonqualified stock option that is not an
Incentive Stock Option.

 

(o)           “Participant” means an individual who receives an Award hereunder.

 

(p)           “Performance Award” refers to a performance award as described in Section 3.6.

 

(q)           “Plan” means the Global Aviation Holdings, Inc. 2009
Long-Term Incentive Plan for Outside Directors.

 

(r)            “Restricted Stock Units” refers to the rights described in Section 3.7.

 

(s)            “Separation from Service” shall mean a termination of a
Participant’s service relationship with the Company, subject to the following
requirements:

 

(1)           a
termination of the Participant’s service relationship with the Company and all
affiliated companies that, together with the Company, constitute the “service
recipient” within the meaning of Code Section 409A (collectively, the “Service
Recipient”) where (A) the contract (or in the case of more than one
contract, all contracts) under which services are performed for the Service
Recipient expires, if the expiration constitutes a good-faith and complete
termination of the contractual relationship; or (B) with respect to
amounts payable to the Participant under an Award upon the termination of the
independent contractor’s relationship with the Service Recipient, no amount
will be paid to the Participant before a date that is at least twelve (12)
months after the day on which the contract expires under which the Participant
performs services for the Service Recipient (or, in the case of more than one
contract, all such contracts expire), and no amount payable to the Participant
on that date will be paid to the Participant if, after the expiration of the
contract (or contracts) and before that date, the 

 

3

 

Participant performs services for the Service Recipient
as an independent contractor or an employee; or

 

(2)           in any
case, as may otherwise be permitted under Code Section 409A.

 

(t)            “Stock” means the Company’s Class A common stock.

 

(u)           “Stock Appreciation Right” means a stock appreciation right
described in Section 3.3.

 

(v)           “Stock
Award” means a stock award described in Section 3.4.

 

(w)          “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if, at the relevant time, each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing fifty percent (50%) or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain.

 

(x)           “Termination
of Service” means the termination of the service relationship between a
Participant and the Company and its Affiliates, including, but not by way of
limitation, a termination by resignation, discharge, death, Disability or
retirement.  The Board of Directors will,
in its absolute discretion, determine the effect of all matters and questions
relating to a Termination of Service as it affects an Award.

 

SECTION 2  THE
LONG-TERM INCENTIVE PLAN

 

2.1          Purpose
of the Plan.  The Plan is intended
to (a) provide incentives to selected non-employee directors of the
Company and its Affiliates to stimulate their efforts toward the continued
success of the Company and to operate and manage the business in a manner that
will provide for the long-term growth and profitability of the Company; (b) encourage
stock ownership by selected non-employee directors by providing them with a
means to acquire a proprietary interest in the Company, acquire shares of
Stock, or to receive compensation which is based upon appreciation in the value
of Stock; and (c) provide a means of obtaining, rewarding and retaining
non-employee directors.

 

2.2          Stock
Subject to the Plan.  Subject to adjustment
in accordance with Section 5.2, One Hundred Forty (140) shares of Stock
(the “Maximum Plan Shares”) are hereby reserved exclusively for issuance upon
exercise, settlement, or payment pursuant to Awards, all or any of which may be
pursuant to any one or more Awards. Shares of Stock shall not be deemed to have
been issued pursuant to the Plan with respect to any portion of an Award that
is settled in cash.  The shares of Stock
attributable to the nonvested, unpaid, unexercised, unconverted or otherwise
unsettled portion of any Award that is forfeited or cancelled or expires or
terminates for any reason without becoming vested, paid, exercised, converted
or otherwise settled in full will again be available for purposes of the Plan.  For purposes of determining the number of
shares of Stock

 

4

 

issued upon the exercise, settlement or grant of an
Award under this Section, any shares of Stock withheld to satisfy tax
withholding obligations or the Exercise Price shall be considered issued under
the Plan.

 

2.3          Administration
of the Plan.   The Plan is administered by the Board of
Directors.  The Board of Directors has full authority in its discretion to
determine the non-employee directors of the Company or its Affiliates to whom
Awards will be granted and the terms and provisions of Awards, subject to the
Plan.  Subject to the provisions of the
Plan, the Board of Directors has full and conclusive authority to interpret the
Plan; to prescribe, amend and rescind rules and regulations relating to
the Plan; to determine the terms and provisions of the respective Award
Agreements and to make all other determinations necessary or advisable for the
proper administration of the Plan.  The Board of Directors’ determinations
under the Plan need not be uniform and may be made by it selectively among
persons who receive, or are eligible to receive, Awards under the Plan (whether
or not such persons are similarly situated).  The Board of Directors’
decisions are final and binding on all Participants.

 

2.4          Eligibility
and Limits.  Awards may be granted
only to directors of the Company or any Affiliate of the Company who, at the
time of the grant of the Award, are neither employees of the Company nor any of
its Affiliates; provided, however, that a Nonqualified Stock Option or a Stock
Appreciation Right may only be granted to a non-employee director of the
Company or any of its Subsidiaries.  If,
after grant, an Option or Stock Appreciation Right is cancelled, the shares
subject to the cancelled Award shall continue to be counted against the maximum
number of shares for which Options and Stock Appreciation Rights may be granted
to eligible directors as described in this Section 2.4.

 

SECTION 3  TERMS
OF AWARDS

 

3.1          Terms
and Conditions of All Awards.

 

(a)           The number of shares of Stock as to which an Award may be granted or the
amount of an Award will be determined by the Board of Directors in its sole
discretion, subject to the provisions of Section 2.2 as to the total
number of shares available for grants under the Plan and subject to the limits
in Section 2.4.

 

(b)           Each Award will either be evidenced by an Award Agreement in such form
and containing such terms, conditions and restrictions as the Board of
Directors may determine to be appropriate, including without limitation,
performance goals, if any, that must be achieved as a condition to vesting or
settlement of the Award, or be made subject to the terms of an Award Program,
containing such terms, conditions and restrictions as the Board of Directors
may determine to be appropriate, including without limitation, performance
goals, if any, that must be achieved as a condition to vesting or settlement of
the Award.  Each Award Agreement or Award
Program is subject to the terms of the Plan and any provisions contained in the
Award Agreement or Award Program that are inconsistent with the Plan are null
and void.

 

5

 

(c)           The date as of which an Award is granted will be the date on which the
Board of Directors has approved the terms and conditions of the Award and has
determined the recipient of the Award and the number of shares, if any, covered
by the Award, and has taken all such other actions necessary to complete the grant
of the Award, or such later date as may be specified in the approval of such
Award.

 

(d)           Any Award may be granted in connection with all or any portion of a
previously or contemporaneously granted Award. 
Exercise or vesting of an Award granted in connection with another Award
may result in a pro rata surrender or cancellation of any related Award, as
specified in the applicable Award Agreement or Award Program.

 

(e)           Awards are not transferable or assignable except by will or by the laws
of descent and distribution governing the State in which the Participant was
domiciled at the time of the Participant’s death, and are exercisable, during
the Participant’s lifetime, only by the Participant; or in the event of the
Disability of the Participant, by the legal representative of the Participant;
or in the event of death of the Participant, by the legal representative of the
Participant’s estate or if no legal representative has been appointed within
ninety (90) days of the Participant’s death, by the person(s) taking under
the laws of descent and distribution governing the State in which the
Participant was domiciled at the time of the Participant’s death; except to the
extent that the Board of Directors may provide otherwise as to any particular
Award.

 

(f)            After
the date of grant of an Award, the Board of Directors may, in its sole
discretion, modify the terms and conditions of an Award, except to the extent
that such modification would be inconsistent with other provisions of the Plan
or would adversely affect the rights of a Participant under the Award (except
as otherwise permitted under the Plan).

 

3.2          Terms
and Conditions of Options.  Each Option
granted under the Plan must be evidenced by an Award Agreement.

 

(a)           Option Price. The Board of Directors shall
determine the Exercise Price of an Option, which shall be specified in the
applicable Award Agreement.  The Exercise
Price may never be less than the Fair Market Value of a share of Stock
determined as of the date of grant, subject to adjustment in accordance with
Section 5.2.

 

(b)           Option Term.  The term of any Option shall be as specified
in the applicable Award Agreement.

 

(c)           Payment.  Payment for all shares
of Stock purchased pursuant to exercise of an Option will be made in any form
or manner authorized by the Board of Directors in the Award Agreement or by
amendment thereto, including, but not limited to, cash, cash equivalents, or,
if the Award Agreement provides, but in any case subject to such procedures or
restrictions as the Board of Directors may impose:

 

6

 

(i)            by
delivery to the Company of a number of shares of Stock owned by the holder
having an aggregate Fair Market Value of not less than the product of the
Exercise Price multiplied by the number of shares the Participant intends to
purchase upon exercise of the Option on the date of delivery;

 

(ii)           in a cashless exercise through a broker, except if and to the extent
prohibited by law as to officers and directors, including without limitation,
the Sarbanes-Oxley Act of 2002, as amended; or

 

(iii)          by having a number of shares of Stock withheld, the Fair Market Value of
which as of the date of exercise is sufficient to satisfy the Exercise Price.

 

In its discretion, the Board of Directors also may
authorize (at the time an Option is granted or thereafter) Company financing to
assist the Participant as to payment of the Exercise Price on such terms as may
be offered by the Board of Directors in its discretion, except to the extent
prohibited by law, including, but not limited to, restrictions applicable to
officers and directors under the Sarbanes-Oxley Act of 2002, as amended.  Payment must be made at the time that the
Option or any part thereof is exercised, and no shares may be issued or
delivered upon exercise of an Option until full payment has been made by the
Participant.  The holder of an Option, as such, has none of the rights of
a stockholder.

 

(d)           Conditions to the Exercise of an Option. 
Each Option granted under the Plan is exercisable by whom, at such time or
times, or upon the occurrence of such event or events, and in such amounts, as
the Board of Directors specifies in the Award Agreement; provided, however,
that subsequent to the grant of an Option, the Board of Directors, at any time
before complete termination of such Option, may modify the terms of an Option
to the extent not prohibited by the terms of the Plan, including, without
limitation, accelerating the time or times at which such Option may be
exercised in whole or in part, including, without limitation, upon a Change in
Control and may permit the Participant or any other designated person to
exercise the Option, or any portion thereof, for all or part of the remaining
Option term, notwithstanding any provision of the Award Agreement or Award
Program to the contrary.

 

(f)            Special Provisions for Certain Substitute Options.  Notwithstanding anything to the contrary in this Section 3.2,
subject to applicable requirements under Code Section 409A and the rules and
regulations thereunder, any Option issued in substitution for an option
previously issued by another entity may provide for an exercise price and may
contain such other terms and conditions as the Board of Directors may prescribe
to cause such substitute Option to contain as nearly as possible the same terms
and conditions (including the applicable vesting and termination provisions) as
those contained in the previously issued option being replaced thereby.

 

(g)           No
Reload Grants.  Options shall not be granted under the Plan
in consideration for and shall not be conditioned upon the delivery of shares
of Stock to the Company in payment of the exercise price and/or tax withholding
obligation under any other option held by a Participant.

 

7

 

(h)           No
Repricing.  Except as provided in Section 5.2,
without the approval of the Company’s stockholders the Exercise Price of an
Option may not be reduced, directly or indirectly, after the grant of the
Option, including any surrender of the Option in consideration of, or in
exchange for, the grant of a new Option having an exercise price below that of
the Option that was surrendered.

 

3.3           Terms
and Conditions of Stock Appreciation Rights.  Each Stock Appreciation Right granted under
the Plan must be evidenced by an Award Agreement.  A Stock Appreciation
Right entitles the Participant to receive the excess of (1) the Fair
Market Value of a specified or determinable number of shares of the Stock at
the time of payment or exercise over (2) a specified or determinable
price,  which may not be less than the Fair
Market Value on the date of grant.   A Stock Appreciation Right granted in
connection with an Award may only be exercised to the extent that the related
Award has not been exercised, paid or otherwise settled.

 

(a)           Settlement.  Upon settlement of a Stock Appreciation
Right, the Company must pay to the Participant, at the discretion of the Board
of Directors, the appreciation in cash or shares of Stock (valued at the
aggregate Fair Market Value on the date of payment or exercise) as provided in
the Award Agreement or, in the absence of such provision, as the Board of
Directors may determine.

 

(b)           Conditions to Exercise.  Each Stock Appreciation Right granted under
the Plan is exercisable or payable at such time or times, or upon the
occurrence of such event or events, and in such amounts, as the Board of
Directors specifies in the Award Agreement; provided, however, that subsequent
to the grant of a Stock Appreciation Right, the Board of Directors, at any time
before complete termination of such Stock Appreciation Right, may accelerate
the time or times at which such Stock Appreciation Right may be exercised or
paid in whole or in part.

 

(c)           No
Repricing.  Except as provided in Section 5.2,
without the approval of the Company’s stockholders, the price of a Stock
Appreciation Right may not be reduced, directly or indirectly, after the grant
of the Stock Appreciation Right, including any surrender of the Stock
Appreciation Right in consideration of, or in exchange for, the grant of a new
Stock Appreciation Right having a price below that of the Stock Appreciation
Right that was surrendered.

 

3.4           Terms
and Conditions of Stock Awards.  The number of shares of Stock subject to a
Stock Award and restrictions or conditions on such shares, if any, will be as
the Board of Directors determines, and the certificate for such shares will
bear evidence of any restrictions or conditions.  Subsequent to the date
of the grant of the Stock Award, the Board of Directors has the power to
permit, in its discretion, an acceleration of the expiration of an applicable
restriction period with respect to any part or all of the shares granted to a
Participant.  The Board of Directors may
require a cash payment from the Participant in an amount no greater than the
aggregate Fair Market Value of the shares of Stock granted determined at the
date of grant in exchange for the grant of a Stock Award or may grant a Stock
Award without the requirement of a cash payment.

 

8

 

3.5           Terms
and Conditions of Dividend Equivalent Rights.  A Dividend Equivalent Right entitles the
Participant to receive payments from the Company in an amount determined by
reference to any cash dividends paid on a specified number of shares of Stock
to Company stockholders of record during the period such rights are
effective.  The Board of Directors may
impose such restrictions and conditions on any Dividend Equivalent Right as the
Board of Directors in its discretion shall determine, including the date any
such right shall terminate and may reserve the right to terminate, amend or
suspend any such right at any time.

 

(a)           Payment.  Payment in respect of a Dividend Equivalent
Right may be made by the Company in cash or shares of Stock (valued at Fair
Market Value as of the date payment is owed) as provided in the Award Agreement
or Award Program, or, in the absence of such provision, as the Board of
Directors may determine.

 

(b)           Conditions to Payment.  Each Dividend Equivalent Right granted under
the Plan is payable at such time or times, or upon the occurrence of such event
or events, and in such amounts, as the Board of Directors specifies in the
applicable Award Agreement or Award Program; provided, however, that subsequent
to the grant of a Dividend Equivalent Right, the Board of Directors, at any
time before complete termination of such Dividend Equivalent Right, may
accelerate the time or times at which such Dividend Equivalent Right may be
paid in whole or in part.

 

3.6           Terms
and Conditions of Performance Awards.  A Performance Award shall entitle the
Participant to receive, at a specified future date, payment of an amount equal
to all or a portion of either (i) the value of a specified or determinable
number of units (stated in terms of a designated or determinable dollar amount
per unit) granted by the Board of Directors, or (ii) a percentage or
multiple of a specified amount determined by the Board of Directors.  At the time of the grant, the Board of
Directors must determine the base value of each unit; the number of units
subject to a Performance Award, the specified amount and the percentage or
multiple of the specified amount, as may be applicable; and the performance
goals applicable to the determination of the ultimate payment value of the
Performance Award. The Board of Directors may provide for an alternate base
value for each unit or an alternate percentage or multiple under certain
specified conditions.

 

(a)           Payment.  Payment in respect of Performance Awards may
be made by the Company in cash or shares of Stock (valued at Fair Market Value
as of the date payment is owed) as provided in the applicable Award Agreement
or Award Program or, in the absence of such provision, as the Board of
Directors may determine.

 

(b)           Conditions to Payment.  Each Performance Award granted under the Plan
shall be payable at such time or times, or upon the occurrence of such event or
events, and in such amounts, as the Board of Directors may specify in the
applicable Award Agreement or Award Program; provided, however, that subsequent
to the grant of a Performance Award, the Board of Directors, at any time before
complete termination of such Performance Award, may accelerate the time or
times at which such Performance Award may be paid in whole or in part.

 

9

 

3.7           Terms
and Conditions of Restricted Stock Units.  Restricted Stock Units shall entitle the
Participant to receive, at a specified future date or event, payment of an
amount equal to all or a portion of the Fair Market Value of a specified number
of shares of Stock at the end of a specified period.  At the time of the grant, the Board of
Directors will determine the factors which will govern the portion of the
Restricted Stock Units so payable, including, at the discretion of the Board of
Directors, any performance goals that must be satisfied as a condition to
payment.  Restricted Stock Unit Awards
containing performance goals may be designated as performance share awards.

 

(a)           Payment.  Payment in respect of Restricted Stock Units
may be made by the Company, at the discretion of the Board of Directors, in
cash or shares of Stock (valued at Fair Market Value as of the date payment is
owed) as provided in the applicable Award Agreement or Award Program, or, in
the absence of such provision, as the Board of Directors may determine.

 

(b)           Conditions to Payment.  Each Restricted Stock Unit granted under the
Plan is payable at such time or times, or upon the occurrence of such event or
events, and in such amounts, as the Board of Directors may specify in the
applicable Award Agreement or Award Program; provided, however, that subsequent
to the grant of a Restricted Stock Unit, the Board of Directors, at any time
before complete termination of such Restricted Stock Unit, may accelerate the
time or times at which such Restricted Stock Unit may be paid in whole or in
part.

 

3.8           Treatment
of Awards on Termination of Service.  Except as otherwise provided by Plan Section 3.2(e),
any Award under this Plan to a Participant who has experienced a Termination of
Service, Separation from Service, or termination of some other service
relationship with the Company and its Affiliates may be cancelled, accelerated,
paid or continued, as provided in the applicable Award Agreement or Award
Program, or, as the Board of Directors may otherwise determine to the extent
not prohibited by the Plan.  The portion
of any Award exercisable in the event of continuation or the amount of any
payment due under a continued Award may be adjusted by the Board of Directors
to reflect the Participant’s period of service from the date of grant through
the date of the Participant’s Termination of Service, Separation from Service
or termination of some other service relationship or such other factors as the
Board of Directors determines are relevant to its decision to continue the
Award.

 

SECTION 4 
RESTRICTIONS ON STOCK

 

4.1           Escrow
of Shares.  Any certificates representing the shares of
Stock issued under the Plan will be issued in the Participant’s name, but, if
the applicable Award Agreement or Award Program so provides, the shares of
Stock will be held by a custodian designated by the Board of Directors (the “Custodian”).  Each applicable Award Agreement or Award
Program providing for transfer of shares of Stock to the Custodian may require
a Participant to complete an irrevocable stock power appointing the Custodian
or the Custodian’s designee as the attorney-in-fact for the Participant for the
term specified in the applicable Award Agreement or Award Program, with full
power and authority in the Participant’s name, place and stead to transfer,

 

10

 

assign and convey to the Company any shares of Stock
held by the Custodian for such Participant, if the Participant forfeits the
shares under the terms of the applicable Award Agreement or Award
Program.  During the period that the Custodian holds the shares subject to
this Section, the Participant is entitled to all rights, except as provided in the
applicable Award Agreement or Award Program, applicable to shares of Stock not
so held.  Any dividends declared on
shares of Stock held by the Custodian must, as provided in the applicable Award
Agreement or Award Program, be paid directly to the Participant or, in the
alternative, be retained by the Custodian or by the Company until the
expiration of the term specified in the applicable Award Agreement or Award
Program and shall then be delivered, together with any proceeds, with the
shares of Stock to the Participant or to the Company, as applicable.

 

4.2           Restrictions
on Transfer.  The Participant does not have the right to
make or permit to exist any disposition of the shares of Stock issued pursuant
to the Plan except as provided in the Plan or the applicable Award Agreement or
Award Program.  Any disposition of the
shares of Stock issued under the Plan by the Participant not made in accordance
with the Plan or the applicable Award Agreement or Award Program will be
void.  The Company will not recognize, or
have the duty to recognize, any disposition not made in accordance with the
Plan and the applicable Award Agreement or Award Program, and the shares so
transferred will continue to be bound by the Plan and the applicable Award
Agreement or Award Program.

 

SECTION 5 
GENERAL PROVISIONS

 

5.1           Withholding.  The Company shall deduct from all cash distributions under the
Plan any taxes required to be withheld by federal, state or local
government.  Whenever the Company
proposes or is required to issue or transfer shares of Stock under the Plan or
upon the vesting of any Stock Award, the Company has the right to require the
recipient to remit to the Company an amount sufficient to satisfy any federal,
state and local tax withholding requirements prior to the delivery of any
certificate or certificates for such shares or the vesting of such Stock
Award.  A Participant may satisfy the
withholding obligation in cash, cash equivalents, or if and to the extent the
applicable Award Agreement, Award Program, or Board of Directors procedure so
provides, a Participant may elect to have the number of shares of Stock he is
to receive reduced by, or tender back to the Company, the smallest number of
whole shares of Stock which, when multiplied by the Fair Market Value of the
shares of Stock, is sufficient to satisfy federal, state and local, if any,
withholding obligation arising from exercise or payment of an Award.

 

5.2           Changes
in Capitalization; Merger; Liquidation.

 

(a)           The number of shares of Stock reserved for the grant of Options, Dividend
Equivalent Rights, Performance Awards, Restricted Stock Units, Stock
Appreciation Rights and Stock Awards; the number of shares of Stock reserved
for issuance upon the exercise, settlement, or payment, as applicable, of each
outstanding Option, Dividend Equivalent Right, Performance Award, Restricted
Stock Unit and Stock Appreciation Right and upon vesting, settlement, or grant,
as applicable, of each Stock Award; the Exercise Price of each outstanding
Option, the threshold price of each outstanding Stock 

 

11

 

Appreciation Right, and the specified number of shares
of Stock to which each outstanding Option, Dividend Equivalent Right,
Performance Award, Restricted Stock Unit, Stock Appreciation Right, and Stock
Award pertains, shall be proportionately adjusted for any nonreciprocal
transaction between the Company and the holders of capital stock of the Company
that causes the per share value of the shares of Stock underlying an Award to change,
such as a stock dividend, stock split, spinoff, rights offering, or
recapitalization through a large, nonrecurring cash dividend (each, an “Equity
Restructuring”).

 

(b)           In the event of a merger, consolidation, reorganization, extraordinary
dividend, sale of substantially all of the Company’s assets, other change in
capital structure of the Company, tender offer for shares of Stock, or a Change
in Control, that in each case does not constitute an Equity Restructuring, the
Board of Directors may make such adjustments with respect to Awards and take
such other action as it deems necessary or appropriate, including, without
limitation, the substitution of new Awards, the assumption of awards not
originally granted under the Plan, or the adjustment of outstanding Awards, the
acceleration of Awards, the removal of restrictions on outstanding Awards, or
the termination of outstanding Awards in exchange for the cash value determined
in good faith by the Board of Directors of the vested and/or unvested portion of
the Award, all as may be provided in the applicable Award Agreement or, if not
expressly addressed therein, as the Board of Directors subsequently may
determine in its sole discretion. Any adjustment pursuant to this
Section 5.2 may provide, in the Board of Directors’ discretion, for the
elimination without payment therefor of any fractional shares that might
otherwise become subject to any Award, but except as set forth in this Section may
not otherwise diminish the then value of the Award.

 

(c)           Notwithstanding any other provision of this Plan to the contrary, in
taking any action pursuant to Subsection (a) or (b) with respect to a
Nonqualified Stock Option or a Stock Appreciation Right, the Board of Directors
shall consider any provisions of Code Section 409A and the regulations
thereunder that are required to be followed as a condition of the Option and
the Stock Appreciation Right not being treated as the grant of a new Option or
Stock Appreciation Right or a change in the form of payment.  Any adjustment described in the preceding
sentence may include a substitution in whole or in part of other equity
securities of the issuer and the class involved in such Equity Restructuring in
lieu of the shares of Stock that are subject to the Award.

 

(d)           The
existence of the Plan and the Awards granted pursuant to the Plan shall not
affect in any way the right or power of the Company to make or authorize any
adjustment, reclassification, reorganization or other change in its capital or
business structure, any merger or consolidation of the Company, any issue of
debt or equity securities having preferences or priorities as to the Stock or
the rights thereof, the dissolution or liquidation of the Company, any sale or
transfer of all or any part of its business or assets, or any other corporate
act or proceeding.

 

5.3           Cash Awards.  The Board of Directors may, at any time and in its discretion,
grant to any holder of an Award the right to receive, at such times and in such
amounts as determined 

 

12

 

by the Board of Directors in its discretion, a cash
amount which is intended to reimburse such person for all or a portion of the
federal, state and local income taxes imposed upon such person as a consequence
of the receipt of the Award or the exercise of rights thereunder.

 

5.4           Compliance with Code.   Except to the extent provided otherwise by
the Board of Directors, Awards under the Plan are intended to satisfy the
requirements of Section 409A of the Code (and the Treasury Department
guidance and regulations issued thereunder) so as to avoid the imposition of
any additional taxes or penalties under Code Section 409A.  If the Board of Directors determines that an
Award, Award Agreement, Award Program, payment, distribution, deferral
election, transaction or any other action or arrangement contemplated by the
provisions of the Plan would, if undertaken, cause a Participant to become
subject to any additional taxes or other penalties under Code Section 409A,
then unless the Board of Directors provides otherwise, such Award, Award
Agreement, Award Program, payment, distribution, deferral election, transaction
or other action or arrangement shall not be given effect to the extent it
causes such result and the related provisions of the Plan, Award Agreement, and
/ or Award Program will be deemed modified, or, if necessary, suspended in
order to comply with the requirements of Code Section 409A to the extent
determined appropriate by the Board of Directors, in each case without the
consent of or notice to the Participant.

 

5.5           Right to Terminate Employment or Service. 
Nothing in the Plan or in any Award Agreement confers upon any Participant the
right to continue as an officer, employee, director, consultant, or other
service provider of the Company or any of its Affiliates or affect the right of
the Company or any of its Affiliates to terminate the Participant’s employment
or services at any time.

 

5.6           Non-Alienation of Benefits.  Other than as provided herein, no benefit
under the Plan may be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge; and any attempt to do so
shall be void.  No such benefit may,
prior to receipt by the Participant, be in any manner liable for or subject to
the debts, contracts, liabilities, engagements or torts of the Participant.

 

5.7           Restrictions on Delivery and Sale of Shares; Legends.  Each Award is subject to the
condition that if at any time the Board of Directors, in its discretion, shall
determine that the listing, registration or qualification of the shares covered
by such Award upon any securities exchange or under any state or federal law is
necessary or desirable as a condition of or in connection with the granting of
such Award or the purchase or delivery of shares thereunder, the delivery of
any or all shares pursuant to such Award may be withheld unless and until such
listing, registration or qualification shall have been effected.  If a registration statement is not in effect
under the Securities Act of 1933 or any applicable state securities laws with
respect to the shares of Stock purchasable or otherwise deliverable under
Awards then outstanding, the Board of Directors may require, as a condition of
exercise of any Option or as a condition to any other delivery of Stock
pursuant to an Award, that the Participant or other recipient of an Award
represent, in writing, that the shares received pursuant to the Award are being
acquired for investment and not with a view to distribution and agree that the
shares will not be disposed of except pursuant to an effective registration
statement, unless the Company shall have received an opinion of counsel that
such disposition is exempt from such requirement under the Securities

 

13

 

Act of 1933 and any applicable state securities
laws.  The Company may include on
certificates representing shares delivered pursuant to an Award such legends
referring to the foregoing representations or restrictions or any other
applicable restrictions on resale as the Company, in its discretion, shall deem
appropriate.

 

5.8           Listing
and Legal Compliance.  The Board of Directors may suspend the
exercise or payment of any Award so long as it determines that securities
exchange listing or registration or qualification under any securities laws is
required in connection therewith and has not been completed on terms acceptable
to the Board of Directors.

 

5.9           Termination and Amendment of the Plan.  The Board of Directors at any time may amend
or terminate the Plan without stockholder approval; provided, however, that the
Board of Directors may condition any amendment on the approval of stockholders
of the Company if such approval is necessary or advisable with respect to tax,
securities or other applicable laws.  No
such termination or amendment without the consent of the holder of an Award may
adversely affect the rights of the Participant under such Award.

 

5.11         Choice
of Law.  The laws of the State of Georgia shall
govern the Plan, to the extent not preempted by federal law, without reference
to the principles of conflict of laws.

 

5.12         Effective
Date of Plan.  The Plan shall become
effective as of the date the Plan was approved by the Board of Directors.

 

IN WITNESS WHEREOF, the Company has executed this Plan,
and the Plan has become effective as of September 22, 2009.

 

 

	
   

  	
  GLOBAL AVIATION HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark M. McMillin

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  General
  Counsel & Corporate Secretary

  
				

 

14

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