Document:

exv10w12

 

     Exhibit 10.12

AIRCRAFT LEASE AGREEMENT

     THIS AIRCRAFT LEASE AGREEMENT is entered into as of the 1st day of December, 2006 (the
“Commencement Date”), by and between CROSS COUNTY CARRIERS, LIMITED, an Ohio limited liability
company authorized to do business in Tennessee (the “Lessor”), and IdleAire Technologies
Corporation, a Tennessee corporation (the “Lessee”).

WITNESSETH:

     WHEREAS, Lessor is the owner of the Aircraft (defined below);

     WHEREAS, Lessee desires to lease from Lessor, and Lessor is willing to lease to Lessee, the
Aircraft, on a non-exclusive basis, subject to the terms and conditions of this Lease; and

     WHEREAS, Lessee is qualified, or will retain the services of a Person that is qualified, in
all respects to use and operate the Aircraft in accordance with the rules and regulations of the
FAA (defined below) (the “Federal Aviation Regulations”) under Part 91 thereof.

     NOW, THEREFORE, in consideration of the mutual covenants herein, Lessor and Lessee hereby
agree as follows:

1. DEFINITIONS.

     Unless the context otherwise requires, the following terms, when capitalized, shall have the
following meanings for all purposes of this Lease Agreement, the following definitions to be
equally applicable both to the singular and plural forms of the terms herein defined:

     1.1. Act. “Act” shall mean the Federal Aviation Act of 1958, as amended from time to time, or
any similar legislation of the United States enacted in substitution or replacement thereof.

     1.2. Aircraft. “Aircraft” shall mean the Beech King Air 300 aircraft bearing manufacturer’s
serial number FA-132 and FAA registration number N184D including all attached engines and any and
all Parts (defined below).

     1.3. Business Day. “Business Day” shall mean any Day other than Saturday, Sunday or another
day on which banks in Tennessee are required or authorized to be closed.

     1.4. Day. “Day” shall mean a twenty-four (24) hour period beginning at 12:00 a.m. and ending
at 11:59 p.m.

     1.5. Designated Representative. ”Designated Representative” shall mean Ambassador Jet
Service, LLC, or any other Person named as such by Lessor by giving notice to Lessee as provided in
herein. A copy of this Lease Agreement shall be deposited with the Designated Representative.

 

 

     1.6. Event of Default. “Event of Default” shall have the meaning specified in Section
12 hereof.

     1.7. Event of Loss. “Event of Loss” shall mean any of the following events: (i) the Aircraft
shall become lost or stolen for a period greater than 3 days (or, if less, the remaining Term);
(ii) the Insurance Proceeds (defined below) shall be received based upon an actual or constructive
total loss with respect to the Aircraft; (iii) the Aircraft shall be destroyed or irreparably
damaged; (iv) title to the Aircraft shall be taken, seized, confiscated or requisitioned by any
governmental body by condemnation or otherwise for a period stated to be or in fact in excess of 18
months (or, if less, the remaining Term for such property); provided, however, that clause (iv) of
this definition shall not apply to any requisition for use by the Government, provided that such
requisition does not continue for a period exceeding the remaining Term.

     1.8. FAA. “FAA” shall mean, as the context requires, the United States Federal Aviation
Administration and/or the Administrator of the United States Federal Aviation Administration, or
any person, governmental department, bureau, commission or agency succeeding to the functions of
either of the foregoing.

     1.9. Flight Hour. “Flight Hour” shall mean each hour or part thereof, elapsing from the
moment the wheels of the Aircraft leave the ground on take-off to the moment when the wheels of the
Aircraft touch the ground on landing, in each case as recorded in the Aircraft log book or in any
other document recording flight time accepted by the FAA.

     1.10. Governmental Authority. “Governmental Authority” shall mean and include (a) the FAA;
(b) the United States Department of Transportation; (c) a generally recognized national government,
or political subdivision thereof or local jurisdiction therein; (d) any board, Commission,
department, division, organ, instrumentality, court, or agency of any entity described in (c)
above; and (d) an association, organization, or institution of which any such entity described in
(c) or (d) above is a member or to whose jurisdiction any such entity is subject or in whose
activities any such entity is a participant but only (except for purposes of defining Law below) to
the extent that any of the preceding have jurisdiction over the Aircraft or its operations.

     1.11. Home Airport. “Home Airport” shall mean McGhee-Tyson Airport.

     1.12. Indemnitee. Indemnitee shall mean Lessor and its successors, permitted assigns,
members, agents, employees, officers and servants.

     1.13. Initial Term. “Initial Term” shall mean, unless the Lease is terminated earlier as
provided herein, the period commencing on the Commencement Date and ending on November 30, 2007.

     1.14. Insurance Proceeds. “Insurance Proceeds” shall mean any insurance proceeds payable to
Lessor under policies of insurance obtained pursuant to Section 10.

     1.15. Law. “Law” shall mean and include all applicable (a) laws, statute, decree,
constitution, regulation, order, judgment or other directive of any
Governmental Authority; (b) treaty, pact, compact or other agreement to which any Governmental Authority is a
signatory or party; (c) any amendment or revision of any Law described in (a) or (b) above.

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     1.16. Lease. “Lease,” “Lease Agreement”, this “Agreement”, “herein”, “hereunder” or other
like words shall mean and include this Lease Agreement and each amendment, modification or
supplement hereto from time to time entered into.

     1.17. Lease Year. “Lease Year” shall mean any twelve (12) month period making up the Initial
Term or any Renewal Term.

     1.18. Parts. “Parts” shall have the meaning set forth in Section 8 hereof.

     1.19. Person. “Person” shall mean an individual, corporation, trust, partnership,
unincorporated association, joint venture, association, joint-stock company, government or any
agency or political subdivision thereof or other entity.

     1.20. Rent. “Rent” shall have the meaning set forth in Section 3.

     1.21. Reserved Flight Day. “Reserved Flight Day” shall mean any Day reserved by Lessee for
use of the Aircraft.

     1.22. Taxes. “Taxes” shall have the meaning given such term in Section 9 hereof.

     1.23. Term. “Term” shall mean the Initial Term and any Renewal Term(s) (defined below).

     1.24. Third Party Lessee. A “Third Party Lessee” shall mean any other lessee of the Aircraft
who enjoys concurrent, non-exclusive use of the Aircraft with Lessee.

     1.25. Unearned Rent. “Unearned Rent” shall be an amount equal to the excess of (i) the total
Rent paid by Lessee to Lessor hereunder during the applicable Lease Year as of the event giving
rise to the need to compute Unearned Rent, over (ii) the actual amount earned by Lessor hereunder
taking into account the actual number of Flight Hours the Aircraft is used by Lessee during the
applicable Lease Year as of the event giving rise to the need to compute Unearned Rent and the
associated rental rate for such hours. The total amount of the Unearned Rent calculated in the
preceding sentence, may be adjusted, as appropriate, based on any associated sales tax refund
actually received by Lessor due to Sales Tax payments previously made on Flight Hours that are not
used by Lessee.

2. AGREEMENT TO LEASE.

     2.1. Lease. Lessor hereby agrees to lease to Lessee, and Lessee hereby agrees to lease from
Lessor, the Aircraft on a non-exclusive basis as provided herein. During the Initial Term, in
exchange for the Rent, Lessee shall be entitled to use the Aircraft for a total of seventy (70)
Flight Hours (the “Leased Hours”). If this Lease is renewed, the number of Leased Hours in a
Renewal Term shall be same number of Leased Hours during the Initial Term unless otherwise agreed
to by the parties.

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     2.2. Lawful and Proper Use Only. Lessee agrees throughout the Term to use the Aircraft in
accordance with the laws and regulations of the United States and any country, state, territory or
municipality into or over which Lessee may operate, and shall further comply with all health and
police regulations and all rules and orders relating to the Aircraft to which the Aircraft may be
subject in its use, operation, maintenance, modification, overhauling and condition during the term
hereof including, but not limited to, maintaining strict adherence to Federal Aviation Regulations
specifically as they relate to Federal Air Regulation Part 91. Lessee shall not employ, permit or
cause the Aircraft to be used in any business which is forbidden by law or is otherwise illicit,
nor knowingly carry illicit or prohibited goods. Lessee shall not use or permit the Aircraft to be
used in any manner or for any purpose which is not covered by an insurance policy or policies which
Lessor or Lessee is required to carry and maintain, or, for any purpose or for the carriage of any
goods of any description excepted or exempted from said policies, or do any other act or permit to
be done anything which could reasonably be expected to invalidate or limit any said insurance
policy. Notwithstanding anything contained herein to the contrary, the Aircraft shall at all times
be primarily used and located in the continental United States and may not be operated outside of
the continental United States except to the Bahamas, Mexico, Caribbean and Canada. The Aircraft
shall be based exclusively at the Home Airport.

     2.3. Non-Exclusive Lease. This Lease is non-exclusive and does not prevent Lessee from
entering into similar arrangements with Third Party Lessees; provided, however, that Lessor use its
best efforts not to enter into any lease with a Third Party Lessee that would preclude Lessee from
using the Aircraft for the number of Leased Hours specified in Section 3. Notwithstanding
the forgoing to the contrary, Lessor makes no representations or warranties regarding the specific
time or specific number of Reserved Flight Days during which the Aircraft will be available to
Lessee or that Lessee will be able to use all of the Leased Hours prior to the end of the Lease
Year. As between Lessee and the Third Party Lessees, use of the Aircraft shall be on a first-come,
first-served basis. Lessee and the Third Party Lessees shall contact the Designated Representative
to schedule use of the Aircraft by reserving the number of Reserved Flight Days that will be
required for a particular trip. Consistent with the non-exclusive nature of the Lease, Lessee may
make arrangements with Third Party Lessees to share Reserved Flight Days (“Joint Trips”) provided
that Lessee and the Third Party Lessee(s) notify the Designated Representative in advance of the
existence of a Joint Trip arrangement and the parties’ agreement as to who will be credited with
the Flight Hours associated with Joint Trip and who will assume operational control of the
Aircraft.

3. TERM AND PAYMENT.

     3.1. Term. Upon the conclusion of the Initial Term and any Renewal Term (defined herein),
this Lease shall be automatically renewed for an additional twelve (12) month period (each a
“Renewal Term”) unless Lessee or Lessor gives at least ninety (90) days prior written notice prior
to the end of the then current Lease Year to the other of its intention not to renew this Lease.
Furthermore, in the event Lessor intends to sell the Aircraft, Lessor shall have the right to
terminate this Lease at any time upon giving Lessee one (1) month prior written notice of
termination. In the event that this Lease is terminated by Lessor prior to the expiration of the
Term for any reason, any Unearned Rent calculated as of the effective date of the termination of
the Lease shall be returned to the Lessee by the Lessor, otherwise the Rent shall be due and owing
to Lessor in all events.

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     3.2. Rent. During the Initial Term, Lessee shall pay Lessor the following amounts as rent for
the use of the Aircraft (“Rent”):

	 	(i)	 	In exchange for Leased Hours, Lessee shall pay annual rent in
the amount of $53,487 (the “Base Rent”), which shall be paid in equal monthly
installments as provided herein; and
	 
	 	(ii)	 	In addition to the Base Rent, Lessee shall pay the applicable
Tennessee sales tax (the “Sales Tax”) on the monthly installments of the Base
Rent.

The monthly installments of Base Rent, plus the applicable Sales Tax, shall be paid by Lessee to
Lessor no later than the third (3rd) Business Day of each month during the Lease Year.
No refund will be given to Lessee if Lessee shall not use all of the Leased Hours during a Lease
Year. Unused Leased Hours from one Lease Year will not carryover to any subsequent Lease Years.
If this Lease is extended for one or more Renewal Terms as provided in Section 3.1, the
Base Rent for each Renewal Term shall be negotiated by Lessor and Lessee at the time this Lease is
renewed, and the appropriate Sales Tax shall be determined based on the amount of Base Rent
charged. If this Lease is renewed and the Base Rent or the number of Leased Hours is not
renegotiated, it shall be assumed that the Base Rent and the number of Leased Hours in the
immediately preceding Lease Year shall be the Base Rent and the number of Leased Hours in the new
Lease Year.

     3.3. Accelerated Rent; Additional Rent.

           (A) Base Rent is computed hereunder on the assumption that Lessee will utilize the Leased
Hours on a consistent basis throughout each Lease Year. At the end of each quarter of each Lease
Year or upon the early termination of the Lease by Lessor, Lessor will review Lessee’s usage of the
Aircraft to determine if the Leased Hours have been over utilized on a year-to-date basis. In the
event that Lessee’s year-to-date Flight Hours exceed the prorated number of Leased Hours that
should have been used on a year-to-date basis (e.g., 1/4 of the Leased Hours used through the first
three months of the Lease Year), Lessee shall pay to Lessor, as accelerated rent (the “Accelerated
Rent”), an amount equal to $764 multiplied by the number of Flight Hours over the prorated share of
Leased Hours that should have been used as of such date, plus the applicable Sales Tax on such
Accelerated Rent. The Accelerated Rent shall be paid by Lessee within five (5) Business Days of
notice from the Lessor and shall be treated as an advance payment of Base Rent otherwise due
hereunder with the monthly Base Rent due for subsequent months offset by the Accelerated Rent.

           (B) In the event that Lessee’s use of the Aircraft exceeds the Leased Hours for a particular
Lease Year, Lessee shall pay to Lessor within five (5) Business Days of the end of the Flight that
results in such overage, an amount equal to $818 times the total number of Flight Hours, or
fraction thereof, Lessee has used the Aircraft during the Lease Year in excess of the Leased Hours,
plus the applicable Sales Tax (the “Additional Rent”).

     3.4. Additional Leased Hours. Once Lessee has used all of the Leased Hours, Lessee may
purchase additional time in one (1) hour blocks at Base Rent of $818 per Flight Hour, plus
applicable Sales Tax.

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     3.5. Insurance. The Base Rent charged hereunder shall include Lessee’s proportionate share of
insurance acquired by Lessor pursuant to Section 10.

4. COVENANTS, REPRESENTATIONS AND WARRANTIES.

     4.1. Lessor’s Representations and Warranties. LESSOR SHALL NOT BE DEEMED TO HAVE MADE OR
GIVEN, AND HEREBY EXPRESSLY DISCLAIMS, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO
THE TITLE, AIRWORTHINESS, CONDITION, MERCHANTABILITY, DESIGN, OPERATION OR FITNESS FOR USE OF THE
AIRCRAFT, OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO
THE AIRCRAFT except that Lessor represents that it is duly authorized to enter into this Agreement
and to Lease the Aircraft to Lessee hereunder.

     4.2. Lessee’s Representations and Warranties. Lessee covenants, represents and warrants that
on the date of execution of this Agreement and on the Commencement Date:

          (A) Entity Organization and Standing. Lessee is a corporation duly organized and validly
existing in good standing under the laws of the State of Tennessee, and is duly qualified and
authorized to do business and in good standing wherever necessary to substantially carry on its
business and operations and to own its properties and to perform its obligations under this Lease.

          (B) Entity Authority. Lessee has the full power, authority and legal right to enter into and
perform the Lease, and the execution, delivery and performance of the Lease has been duly
authorized by all necessary action on the part of Lessee, does not require any stockholder [member]
approval or approval or consent of any trustee or holders of any indebtedness or obligations of
Lessee, or such required approvals and consents have heretofore been duly obtained by Lessee, and
does not and will not contravene any law, judgment, governmental rule, regulation or order binding
on Lessee or any of its subsidiaries or the chartering documents or by-laws of Lessee or any of its
subsidiaries or result in the breach of, constitute a default under, contravene the provisions of,
or result in the creation of any lien, charge, encumbrance or security interest upon any property
or assets of Lessee pursuant to any indenture, mortgage, contract or other agreement to which
Lessee or any of its subsidiaries is a party or by which it is bound.

          (C) Binding Obligations. The Lease constitutes a valid and legally binding obligation of
Lessee enforceable against Lessee in accordance with the respective terms thereof, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors’ rights generally.

5. RETURN OF AIRCRAFT.

     Each time during the Term in which the Aircraft is returned to Lessor, Lessee agrees that the
Aircraft shall be clean, serviced (potty included) ready for the next flight, airworthy with all
systems functioning properly, in the same condition, and available for the same use within Lessor’s
operations (including, without limitation, the same interior
configuration, cockpit arrangement/instrumentation, other operating systems and components), as when delivered to
Lessee hereunder, reasonable wear and tear excepted, and free and clear of all liens, encumbrances
or rights of others whatsoever except any lien placed on the Aircraft by Lessee.

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6. MORTGAGES, LIENS, ETC.

     Lessee will not directly or indirectly create, incur, assume or suffer to exist any mortgage,
pledge, lien, security interest, charge or encumbrance on or with respect to the Aircraft or title
thereto or any interest therein.

7. MAINTENANCE, USE, OPERATION, AND REGISTRATION.

     7.1. Maintenance, Use, Operation, and Registration. During the Term, Lessee, at its own cost
and expense, shall take, or cause to be taken on its behalf, the following actions:

          (A) maintain the operational care, use, custody and control of the Aircraft while in the
possession of Lessee on each Reserved Flight Day during the Term hereof, including, but not limited
to, using qualified flight crews approved in advance by the Designated Representative, and
operating the Aircraft so as to keep the Aircraft in as good operating condition as when delivered
to Lessee hereunder, ordinary wear and tear excepted, and to cause the airworthiness certificate of
the Aircraft to be maintained at all times under the Act and the Federal Aviation Regulations;

          (B) pay all of the following operating costs associated with the operation of the Aircraft:
fuel, oil, landing fees, airport charges, catering, flight crew, assessments and FAA charges;

          (C) cause the Aircraft at all times after the Commencement Date to remain duly registered in
the United States, in the name of Lessor;

          (D) maintain all flight records, report and file all Maintenance Transaction Reports, Major
Repair Orders, and any repair receipts incurred while in possession of Aircraft, logs and other
materials required by the FAA to be maintained in respect of the Aircraft;

          (E) maintain, in the English language, all materials required by any applicable Governmental
Authority to be maintained in respect of the Aircraft, and promptly furnish to Lessor upon Lessor’s
request such information as may be required to enable Lessor to file any reports required to be
filed with any Governmental Authority because of Lessor’s ownership of the Aircraft;

          (F) provide all necessary information, if reasonably required by Lessor, to enable Lessor to
monitor all warranty items associated with the Aircraft;

          (G) notify Lessor or any other party designated by Lessor in a prompt and timely manner of all
incidents and accidents resulting in damage or an Event of Loss with respect to the Aircraft, or
any major component thereof and repair actions taken, in accordance with FAA approved repair
documentation;

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          (H) maintain all records, logs, and other materials required to be maintained with respect to
the Aircraft by persons in operational control of the Aircraft under any applicable rules, laws or
regulations and supply all such records, logs and other materials to Lessor or third parties as
shall be necessary in order to implement any and all maintenance programs for the Aircraft and
copies of all records of maintenance performed during the Term, as requested by Lessor;

          (I) immediately report to Lessor and/or the Designated Representative any and all Aircraft
squawks;

          (J) file with the Designated Representative flight logs within twenty-four (24) hours of
completion of any flight showing the number of Flight Hours used by Lessee; and

          (K) promptly furnish to the Designated Representative such information reasonably requested by
Lessor as may be required to enable Lessor to file any reports required to be filed by Lessor or
with any governmental authority.

     7.2. Limitations on Use of Aircraft. Use of Aircraft shall be subject to the following
limitations:

          (A) Except as provided in Section 7.3 below, no trip scheduled by Lessee shall result
in the Aircraft being away from the Home Airport for more than three (3) consecutive Reserved
Flight Days. If any such flight is scheduled by the Lessee, the Aircraft must be returned to the
Home Airport for the Days between the Days that the actual flight(s) take(s) place;

          (B) Lessee may not use the Aircraft for more than 47 Reserved Flight Days during any Lease
Year;

          (C) Cancellation of a Reserved Flight Day less than 48 hours before scheduled departure will
create a one (1) day charge against the Lessee’s Reserved Flight Days;

          (D) Cancellation of a Reserved Flight Day less than 24 hours before scheduled departure will
(i) create a charge against the Lessee’s Leased Hours equal to the calculated Flight Hours for the
scheduled flight (one-way only), and (ii) result in a charge from the pilot equal to the pilot’s
hourly rate multiplied by the calculated Flight Hours for the scheduled flight (one-way only); and

          (E) Lessee shall not use the Aircraft for any purpose or in any manner which would require:

	 	(i)	 	Engine shutdowns while in flight;
	 
	 	(ii)	 	Simulated engine out approaches/landings;
	 
	 	(iii)	 	Any type of flight training; or
	 
	 	(iv)	 	Operations under Federal Air Regulation Part 135.

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     7.3. Repositioning. Notwithstanding Section 7.2(A) above, Lessor, in Lessor’s sole
discretion, may permit Lessee to reserve the Aircraft for more than three (3) consecutive Reserved
Flight Days without requiring that the Aircraft be repositioned to its Home Airport as provided in
Section 7.2(A). If Lessor agrees that the Aircraft does not have to be repositioned at the
Home Airport, Lessee shall pay all costs associated with the flight crew for the entirety of the
trip, including, but not limited to, motels, meals, rental cars, per diem, and return flights for
the crew, if necessary. Furthermore, should Lessee desire to use the Aircraft during a Third Party
Lessee’s Reserved Flight Days which requires the repositioning of the Aircraft, any Flight Hours
incurred to reposition the Aircraft (both to pick up the Lessee and to return the Aircraft to the
Third Party Lessee) shall be treated as Leased Hours as to the Lessee.

     7.4. Flight Length; Landings. It is anticipated that Lessee will not use the Aircraft in any
manner that results in an average accumulation of more than 1.2 landings per Leased Hour or an
average accumulation of more than 1.2 engine starts/shutdowns per Leased Hour (each a “Short Leg”).
Should Lessee’s use of the Aircraft result in a Short Leg, following such Short Leg, Lessee will
be billed a Short Leg Fee in the amount of Two Hundred Dollars ($200), which shall be paid within
five (5) Business Days of the Short Leg.

     7.5. Maintenance. Lessor at its own expense shall cause the Aircraft to be serviced,
repaired, overhauled, tested and maintained in compliance with all applicable Federal Aviation
Regulations, including, but not limited to, Part 91 thereof. In no event shall Lessor have any
liability to Lessee for flights that must be cancelled due to any scheduled or unscheduled
maintenance.

8. TAX INDEMNITY.

     8.1. Scope. Lessee shall hold each Indemnitee harmless from liability for any and all taxes,
including, but not limited to, sales, use, personal property, license, documentation, transfer,
fuel, leasing, occupational, value added, excise, environmental and other taxes, levies, imposts,
charges, fees, assessments or duties of any nature, together with any penalties, fines, charges,
additions to tax or interest thereon, imposed by any taxing authority whether domestic or foreign
(collectively, “Taxes”) imposed during the Term against or in respect of Lessor, any Indemnitee or
the Aircraft, by any Federal, state or local government or taxing authority in the United States,
or by any foreign country or any taxing authority or governmental subdivision thereof, upon or with
respect to, based upon or measured by Lessee’s leasing, possession, use, operation (including, but
not limited to, landings and take-offs) of the Aircraft; provided, however, that Lessee shall have
no such obligation with respect to (A) Taxes imposed by a Governmental Authority upon or with
respect to, based on or measured by, the gross or net income of any Indemnitee including any
minimum tax, franchise taxes, tax on doing business, taxes on capital or net worth, and surtax or
similar tax; (B) Taxes which result from the activities of the Lessor or Indemnitee in the
jurisdiction imposing the liability that are unrelated to the transactions contemplated by this
Lease, or the operation of the Aircraft by Lessee; (C) Taxes imposed as a result of a transfer,
assignment or other disposition by Lessor of any of its rights with respect to the Aircraft; or (D)
Taxes imposed as a direct and primary result of Lessor’s or any Indemnitee’s negligence or, any
breach by any Indemnitee of its obligations hereunder or accuracy of any representation, covenant
or warranty given by any Indemnitee; (E) Taxes attributable to events or circumstances which
accrue, occur or arise prior to the Commencement Date or subsequent to the expiration date of this Lease; or (F) Taxes attributable to payments
or distributions from Lessee to any Indemnitee.

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     8.2. Tax Savings. If any Indemnitee realizes a reduction in Taxes that would otherwise be
payable or actually receives a refund of Taxes by reason of an indemnity payment under this section
which reduction or refund was not otherwise taken into account in calculating Lessee’s tax
indemnity obligation then the Indemnitee shall pay to the Lessee an amount equal to the sum of such
Tax refund or reduction together with any interest received thereon.

     8.3. Contest. The Lessor shall promptly advise the Lessee of any Tax audit commenced by any
Governmental Authority that involves a Tax that a Lessee is obligated to indemnify Lessor. Lessor
shall notify Lessee of any Tax return filings, audits or assessments so as to permit Lessee to
timely contest the applicability or amount of any Taxes that Lessee is obligated to indemnify
Lessor. Lessor shall, if requested by Lessee, cooperate in the contest of Taxes that must be
contested in Lessor’s name.

     8.4. Reports. Lessor shall, upon the request of Lessee, provide all information and records
used in the preparation of Tax reports, returns, or statements with respect to any Tax that a
Lessee is obligated to indemnify Lessor.

     8.5. Survival. The provisions of this Section 8 shall survive the expiration or
termination of this Lease.

9. EVENTS OF LOSS.

     9.1. With Respect to the Aircraft. Upon the occurrence of an Event of Loss with respect to
the Aircraft, Lessee shall forthwith (and in any event within two (2) days after such occurrence)
give Lessor written notice of such Event of Loss, and Lessor and Lessee shall proceed diligently
and cooperate fully with each other in the recovery of any and all Insurance Proceeds of insurance
applicable thereto.

     9.2. Replacement of Parts. Lessor will promptly replace all appliances, parts, instruments,
appurtenances, accessories, furnishings and other equipment of whatever nature, excluding engines
(herein called “Parts”), which may from time to time be incorporated or installed in or attached to
Aircraft and which may from time to time become worn out, lost, stolen, destroyed, seized,
confiscated, damaged beyond repair or permanently rendered unfit for use for any reason whatsoever.
In addition, in the ordinary course of maintenance, service, repair, Lessee may, remove Parts,
whether or not worn out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or
permanently rendered unfit for use, provided that Lessee shall immediately replace such Parts. All
replacement Parts shall be in as good operating condition as, and shall have a value and utility at
least equal to, the Parts replaced if such replaced Parts were in the condition and repair required
to be maintained by the terms hereof. All Parts at any time removed from the Aircraft shall remain
the property of Lessor no matter where located, until such time as such Parts shall be replaced by
Parts which have been incorporated or installed in or attached to the Aircraft and which meet the
requirements for replacement Parts specified above. Immediately upon any replacement Part becoming
incorporated or installed in or attached to the Aircraft as above provided, without further act,
(i) title to the replaced Part shall thereupon vest, free and clear in Lessor, and (ii) such
replacement Part shall become subject to this Lease and deemed part of the Aircraft for all
purposes hereof to the same extent as the Parts originally incorporated or installed in or attached
to the Aircraft.

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     9.3. Termination of Lease. Upon the occurrence of an Event of Loss (i) resulting in the
complete destruction of the Aircraft or (ii) rendering the Aircraft unfit for use where it is
reasonably expected that the Aircraft will not be useable prior to the expiration of the then
current Lease Year, this Lease shall terminate and any Unearned Rent determined as of the Event of
Loss shall be returned to the Lessee.

10. INSURANCE.

     10.1. Risks to be Insured, Etc. Lessor will at all times carry and maintain in effect, or
cause to be carried and maintained in effect, on the Aircraft, at its own cost and expense, (i)
third party and passenger liability insurance; (ii) property damage liability insurance; (iii)
aircraft all-risk hull insurance for the Aircraft; and (iv) war-risk insurance, in each case in
such amounts and in such form, including without limitation the form of the loss payable clause
and the designation of named insureds, and with such insurance companies, underwriters or funds of
recognized responsibility as is acceptable to Lessor. Lessee’s proportionate share of the cost of
the above described insurance is included in the Base Rent.

     10.2. Optional Insurance. Lessee may at its option insure, or cause to be insured, Lessee’s
leasehold and other interest in the Aircraft for an amount in addition to the amounts required
above. Any payment resulting from such insurance shall be paid over to and retained by Lessee so
long as no Event of Default has occurred and/or is not continuing.

     10.3. Policy Provisions. All liability policies acquired by Lessor may name Lessee as
additional insureds as their respective interests may appear; provided, however, that Lessor’s
insurable interest shall always have priority over the insurable interest of Lessee such that any
amounts paid pursuant to such policies shall be paid first to losses incurred by Lessor, if any,
then to losses incurred by Lessee. All policies obtained by Lessee shall waive any right of
subrogation of the insurers against Lessor.

11. ASSIGNMENT.

     Lessee will not, without the prior written consent of Lessor, assign any of its rights as
Lessee hereunder. Lessor may assign or convey its right, title and interest in and to this Lease to
one or more of its affiliates without the consent of Lessee. Subject to the terms and provisions
of this Section 11, the terms and provisions of this Lease shall be binding upon and inure
to the benefit of Lessor and Lessee and their respective successors and assigns.

12. EVENTS OF DEFAULT.

     The following events shall constitute Events of Default (whether any such event shall be
voluntary or involuntary or come about or be effected by operation of law or pursuant to or in
compliance with any judgment, decree or order to any court or any order, rule or regulation of any
administrative or governmental body):

11

 

     12.1. Lessee shall fail to make any payment of any amount required hereunder when the same
shall become due;

     12.2. Lessee shall fail to carry and maintain in effect insurance on or with respect to the
Aircraft in accordance with the provisions of Section 10 hereof or Lessee shall default in
the performance of its obligations under Section 7 hereof;

     12.3. Lessee shall fail to perform or observe any other covenant, condition or agreement to be
performed or observed by it hereunder and such failure shall continue unremedied for a period of 10
Days after written notice thereof by Lessor;

     12.4. any representation or warranty made by Lessee herein shall at any time prove to have
been untrue or incorrect in any material respect at the time made;

     12.5. Lessee shall apply for or consent to the appointment of a custodian, receiver, trustee,
liquidator or similar officer for it or for all or a substantial part of its property, or shall
make a general assignment for the benefit of creditors, or Lessee shall admit in writing its
inability to pay its debts generally as they become due, or Lessee shall file a voluntary petition
in bankruptcy or a voluntary petition or an answer seeking reorganization in a proceeding under any
bankruptcy laws (as now or hereafter in effect) or an answer admitting the material allegations of
a petition filed against Lessee in any such proceeding, or Lessee shall by voluntary petition,
application, answer, consent or otherwise institute any proceeding, or seek relief under the
provisions of any law now or hereafter existing, relating to bankruptcy, insolvency,
reorganization, arrangement, readjustment of debt, dissolution, liquidation or the like in respect
of the reorganization or winding-up of corporations, or providing for an agreement, composition,
extension or adjustment with its creditors;

     12.6. an order, judgment or decree shall be entered by any court or governmental agency of
competent jurisdiction appointing, without the application or consent of Lessee, a custodian,
receiver, trustee, liquidator or similar officer for Lessee or for all or any substantial part of
its property, or any substantial part of the property of Lessee shall be sequestered, and any such
order, judgment or decree of appointment or sequestration shall remain in force undismissed,
undischarged, unstayed and unvacated for a period of 30 days after the date of entry thereof; or

     12.7. an order for relief shall be entered by any court against Lessee in an involuntary case
under the Federal bankruptcy laws or other insolvency laws (as now or hereafter in effect) or
adjudging Lessee a bankrupt or insolvent, or a petition against Lessee in any such proceeding shall
be filed and shall not be withdrawn or dismissed within 30 days thereafter, or if under the
provisions of any law providing for reorganization or winding-up of corporations which may apply to
Lessee, any court of competent jurisdiction shall assume jurisdiction, custody or control of Lessee
or of any substantial part of its property and such jurisdictions, custody or control shall remain
in force unrelinquished, unstayed and unterminated for a period of 30 days.

12

 

13. REMEDIES.

     Upon the occurrence of any Event of Default and at any time thereafter so long as the same
shall be continuing, Lessor may, at its option, declare this Lease Agreement to be in default by
written notice to such effect delivered to Lessee; and at any time thereafter, unless Lessee shall
have remedied all outstanding Events of Default, Lessor may do one or more of the following with
respect to the Aircraft, as Lessor in its sole discretion shall elect, to the extent permitted by,
and subject to compliance with any mandatory requirements of, applicable law then in effect:

     13.1. terminate the Lease;

     13.2. demand that Lessee, at Lessee’s expense, promptly return the Aircraft to Lessor at the
Home Airport, in the condition and otherwise in accordance with all of the terms of Section
5 hereof, or Lessor, at its option, may enter upon the premises where the Aircraft is located
and take immediate possession of and remove the Aircraft by summary proceedings or otherwise, as
prescribed by law, all without liability to Lessor, whether for the restoration of damage to
property caused by such taking or otherwise;

     13.3. dispose of, hold, use, operate, lease to others or keep idle the Aircraft as Lessor in
its sole discretion may determine, all free and clear of any rights of Lessee;

     13.4. whether or not Lessor shall have exercised, or shall thereafter at any time exercise,
any of its rights under Section 13.1, 13.2, or 13.3 above with respect to
the Aircraft, Lessor, by written notice to Lessee specifying a payment date not earlier than ten
(10) Days from the date of such notice, may demand that Lessee pay to Lessor and Lessee shall
promptly pay to Lessor on the date specified in such notice, any unpaid Rent due up to, but not
including, the rent payment date first preceding the date specified in such notice (together with
interest on such amount at the maximum rate of interest allowable by law at the time from the date
specified in such notice to the date of actual payment); and/or

     13.5. Lessor may exercise any other right or remedy which may be available to it under
applicable law or proceed by appropriate court action to enforce the terms hereof, to rescind this
Lease Agreement as to the Aircraft and to recover damages for the breach hereof.

     In addition, Lessee shall be liable for any and all unpaid Rent and for all legal fees and
other costs and expenses incurred by reason of the occurrence of any Event of Default or the
exercise of Lessor’s remedies with respect thereto, including all costs and expenses incurred in
connection with the return of any Aircraft in accordance with the terms of Section 5 hereof
or in placing such Aircraft in the condition and airworthiness required by said Section. Except as
otherwise expressly provided above, no remedy referred to in this Section 13 is intended to
be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or
otherwise available to Lessor at law or in equity; and the exercise or beginning of exercise by
Lessor of anyone or more of such remedies shall not preclude the simultaneous or later exercise by
Lessor of any or all such other remedies. No express or implied waiver by Lessor of any Event of
Default shall in any way be, or be construed to be, a waiver of any subsequent Event of Default.

13

 

14. NOTICES.

     All notices, requests, demands, and other communications required or permitted hereunder shall
be in writing and shall be deemed to have been given if delivered by hand or by nationally
recognized overnight courier, or mailed certified or registered mail, return receipt requested,
with postage prepaid, or sent by facsimile or other electronic transmission, as follows:

	 	(a)	 	If to Lessor, to:

Michael C. Crabtree, President

JLC Aviation LLC

12347 Vista Brook Lane

Knoxville, TN 37934

Phone: 865-342-3620

Fax: 865-437-2620

	 
	 	 	 	With a copy to:
	 
	 	 	 	Jim Fox

Ambassador Jet Service, LLC

P.O. Box 32067

Knoxville, Tennessee 37930

Telephone: 865-690-2200

Telecopier: 865-690-3666

	 
	 	(b)	 	If to the Lessee, to:

IdleAire Technologies Corporation

410 N. Cedar Bluff Road, Suite 410

Knoxville, TN 37923

Attn:

15. MISCELLANEOUS.

     Any provision of this Lease which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
To the extent permitted by applicable law Lessee hereby waives any provision of law which renders
any provision hereof prohibited or unenforceable in any respect. No term or provision of this Lease
may be changed, waived, discharged or terminated totally, but only by an instrument in writing
signed by the party against which the enforcement of the change, waiver, discharge or termination
is sought. No waiver by Lessor of any default hereunder by Lessee shall extend to any subsequent or
other default. In the event that any date for the payment of any amount due hereunder shall not be
a Business Day, then such payment need not be made on such date but may be made on the next
succeeding Business Day with the same force and effect as if made on the due date, and no interest
on such payment shall accrue for the period from such due date to and including the next succeeding Business Day. The captions in this Lease are for
convenience of reference only and shall not define or limit any of the terms or provisions hereof.
This Lease is being delivered in the State of Tennessee and shall in all respects be governed by,
and construed in accordance with, the laws of the State of Tennessee, including all matters of
construction, validity and performance.

14

 

16. INDEMNIFICATION.

     Lessee agrees to indemnify, reimburse, and hold harmless Lessor and its successors, mortgagee,
assigns, agents, employees or servants on an after tax basis, from and against any and all claims,
damages, losses, liabilities, demands, suits, judgments, causes of action, legal proceedings,
whether civil or criminal, penalties, fines, other sanctions, and any costs and expenses in
connection therewith, including attorney’s fees and expenses (any and all of which are hereafter
referred to as “Claims”) which in any way may result from or arise out of or in relation to (i) the
condition, Lease, possession, use, or operation of the Aircraft either in the air or on the ground
during the Term (except Claims arising out of the gross negligence or willful misconduct of Lessor)
or (ii) any defect in the Aircraft arising from the maintenance, service, repair, overhaul, or
testing of the Aircraft, during the Term, regardless of when such defect shall be discovered,
whether or not the Aircraft is at the time in the possession of Lessee, and regardless of where the
Aircraft may then be located.

     Lessee hereby waives and releases any Claim now or hereafter existing against Lessor, its
successors or assigns on account of any Claims for or on account of or arising or in any way
connected with injury to or death of personnel of Lessee or damage to property of Lessee or the
loss of use of any property which may result from or arise in any manner out of or in relation to
the ownership, leasing, condition, use or operation of the Aircraft, either in the air or on the
ground during the Term, or which may be caused during such Term by any defect in the Aircraft from
the material or any article used therein or from the testing, or use thereof or from any
maintenance, service, repair, overhaul, or testing of the Aircraft regardless of when such defect
may be discovered, whether or not the Aircraft is at the time in the possession of Lessee, and
regardless of the location of the Aircraft at any such time.

     Lessee hereby agrees, and shall have the rights, to assume and conduct promptly and
diligently, at its sole cost and expense, the entire defense of Lessor against any such Claim or
claim.

     The indemnities contained in this Section 16 shall continue in full force and effect
notwithstanding the expiration or other termination of this Lease and are expressly made for the
benefit of, and shall be enforceable by, Lessor. Notwithstanding such survival, such
indemnification obligation shall only apply to those acts or omissions which occur during the Term,
unless otherwise extended by the exercise of remedies under Section 13 by Lessor.

15

 

			
	17.	 	TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 OF THE FEDERAL AVIATION REGULATIONS.

     17.1. DURING THE 12 MONTHS PRECEDING THE EXECUTION OF THIS AGREEMENT, THE AIRCRAFT HAS BEEN
MAINTAINED AND INSPECTED IN ACCORDANCE WITH PART 91 OF THE FAR. THE PARTIES HEREBY CERTIFY THAT THE AIRCRAFT WILL
CONTINUE TO BE INSPECTED AND MAINTAINED UNDER PART 91 OF THE FAR DURING THE TERM OF THIS AGREEMENT.

     17.2. LESSEE, WHOSE NAME IS IDLEAIRE TECHNOLOGIES CORPORATION, SHALL HAVE OPERATIONAL CONTROL
OF ALL FLIGHTS CONDUCTED UNDER THIS AGREEMENT.

     17.3. AN EXPLANATION OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL
AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FLIGHT STANDARDS DISTRICT OFFICE.

     17.4. THE “INSTRUCTIONS FOR COMPLIANCE WITH TRUTH IN LEASING REQUIREMENTS” ATTACHED HERETO AS
EXHIBIT A ARE INCORPORATED HEREIN BY REFERENCE.

     IN WITNESS WHEREOF, Lessor and Lessee have each caused this Agreement to be duly executed as
of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	LESSOR:	 	 	 	LESSEE:
	 
	 	 	 	 	 	 	 	 
	CROSS COUNTY CARRIERS, LIMITED	 	 	 	IDLEAIRE TECHNOLOGIES

      CORPORATION
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Michael C. Crabtree
	 	 	 	By:
	 	/s/ Paul Boyd
	 

	 	 
	 	 	 	 	 	 
	 

	 	Michael C. Crabtree, President	 	 	 	Its:
	 	CFO & Treasurer

16

 

EXHIBIT A

INSTRUCTIONS FOR COMPLIANCE WITH “TRUTH IN LEASING” REQUIREMENTS

	1.	 	Mail a copy of the lease agreement to the following address via
certified mail, return receipt requested, immediately upon execution of the
agreement (14 C.F.R. 91.23 requires that the copy be sent within twenty-four
hours after it is signed):

Federal Aviation Administration

Aircraft Registration Branch

ATTN: Technical Section

P.O. Box 25724

Oklahoma City, Oklahoma 73125

	2.	 	Telephone the nearest Flight Standards District Office at least
forty-eight hours prior to the first flight under this lease agreement.

	3.	 	Carry a copy of the lease agreement in the aircraft at all times.exv10w13

 

Exhibit 10.13

AIRCRAFT LEASE AGREEMENT

     THIS AIRCRAFT LEASE AGREEMENT is entered into as of the 1st day of November, 2006 (the
“Commencement Date”), by and between JLC AVIATION LLC, a Tennessee limited liability company (the
“Lessor”), and IdleAire Technologies Corporation, a Tennessee corporation (the “Lessee”).

WITNESSETH:

     WHEREAS, Lessor is the owner of the Aircraft (defined below);

     WHEREAS, Lessee desires to lease from Lessor, and Lessor is willing to lease to Lessee, the
Aircraft, on a non-exclusive basis, subject to the terms and conditions of this Lease; and

     WHEREAS, Lessee is qualified, or will retain the services of a Person that is qualified, in
all respects to use and operate the Aircraft in accordance with the rules and regulations of the
FAA (defined below) (the “Federal Aviation Regulations”) under Part 91 thereof.

     NOW, THEREFORE, in consideration of the mutual covenants herein, Lessor and Lessee hereby
agree as follows:

1. DEFINITIONS.

     Unless the context otherwise requires, the following terms, when capitalized, shall have the
following meanings for all purposes of this Lease Agreement, the following definitions to be
equally applicable both to the singular and plural forms of the terms herein defined:

     1.1. Act. “Act” shall mean the Federal Aviation Act of 1958, as amended from time to time, or
any similar legislation of the United States enacted in substitution or replacement thereof.

     1.2. Aircraft. “Aircraft” shall mean the Cessna Citation V aircraft bearing manufacturer’s
serial number 560-0120 and current FAA registration number N560PS (which registration number is
being changed to N129MC) including all attached engines and any and all Parts (defined below).

     1.3. Business Day. “Business Day” shall mean any Day other than Saturday, Sunday or another
day on which banks in Tennessee are required or authorized to be closed.

     1.4. Day. “Day” shall mean a twenty-four (24) hour period beginning at 12:00 a.m. and ending
at 11:59 p.m.

     1.5. Designated Representative. ”Designated Representative” shall mean Ambassador Jet
Service, LLC, or any other Person named as such by Lessor by giving notice to Lessee as provided in
herein. A copy of this Lease Agreement shall be deposited with the Designated Representative.

 

 

     1.6. Event of Default. “Event of Default” shall have the meaning specified in Section
12 hereof.

     1.7. Event of Loss. “Event of Loss” shall mean any of the following events: (i) the Aircraft
shall become lost or stolen for a period greater than 3 days (or, if less, the remaining Term);
(ii) the Insurance Proceeds (defined below) shall be received based upon an actual or constructive
total loss with respect to the Aircraft; (iii) the Aircraft shall be destroyed or irreparably
damaged; (iv) title to the Aircraft shall be taken, seized, confiscated or requisitioned by any
governmental body by condemnation or otherwise for a period stated to be or in fact in excess of 18
months (or, if less, the remaining Term for such property); provided, however, that clause (iv) of
this definition shall not apply to any requisition for use by the Government, provided that such
requisition does not continue for a period exceeding the remaining Term.

     1.8. FAA. “FAA” shall mean, as the context requires, the United States Federal Aviation
Administration and/or the Administrator of the United States Federal Aviation Administration, or
any person, governmental department, bureau, commission or agency succeeding to the functions of
either of the foregoing.

     1.9. Flight Hour. “Flight Hour” shall mean each hour or part thereof, elapsing from the
moment the wheels of the Aircraft leave the ground on take-off to the moment when the wheels of the
Aircraft touch the ground on landing, in each case as recorded in the Aircraft log book or in any
other document recording flight time accepted by the FAA.

     1.10. Governmental Authority. “Governmental Authority” shall mean and include (a) the FAA;
(b) the United States Department of Transportation; (c) a generally recognized national government,
or political subdivision thereof or local jurisdiction therein; (d) any board, Commission,
department, division, organ, instrumentality, court, or agency of any entity described in (c)
above; and (d) an association, organization, or institution of which any such entity described in
(c) or (d) above is a member or to whose jurisdiction any such entity is subject or in whose
activities any such entity is a participant but only (except for purposes of defining Law below) to
the extent that any of the preceding have jurisdiction over the Aircraft or its operations.

     1.11. Home Airport. “Home Airport” shall mean McGhee-Tyson Airport.

     1.12. Indemnitee. Indemnitee shall mean Lessor and its successors, permitted assigns,
members, agents, employees, officers and servants.

     1.13. Initial Term. “Initial Term” shall mean, unless the Lease is terminated earlier as
provided herein, the period commencing on the Commencement Date and ending on October 31, 2007.

     1.14. Insurance Proceeds. “Insurance Proceeds” shall mean any insurance proceeds payable to
Lessor under policies of insurance obtained pursuant to Section 10.

     1.15. Law. “Law” shall mean and include all applicable (a) laws, statute, decree,
constitution, regulation, order, judgment or other directive of any Governmental Authority;

2

 

(b) treaty, pact, compact or other agreement to which any Governmental Authority is a
signatory or party; (c) any amendment or revision of any Law described in (a) or (b) above.

     1.16. Lease. “Lease,” “Lease Agreement”, this “Agreement”, “herein”, “hereunder” or other
like words shall mean and include this Lease Agreement and each amendment, modification or
supplement hereto from time to time entered into.

     1.17. Lease Year. “Lease Year” shall mean any twelve (12) month period making up the Initial
Term or any Renewal Term.

     1.18. Parts. “Parts” shall have the meaning set forth in Section 8 hereof.

     1.19. Person. “Person” shall mean an individual, corporation, trust, partnership,
unincorporated association, joint venture, association, joint-stock company, government or any
agency or political subdivision thereof or other entity.

     1.20. Rent. “Rent” shall have the meaning set forth in Section 3.

     1.21. Reserved Flight Day. “Reserved Flight Day” shall mean any Day reserved by Lessee for
use of the Aircraft.

     1.22. Taxes. “Taxes” shall have the meaning given such term in Section 9 hereof.

     1.23. Term. “Term” shall mean the Initial Term and any Renewal Term(s) (defined below).

     1.24. Third Party Lessee. A “Third Party Lessee” shall mean any other lessee of the Aircraft
who enjoys concurrent, non-exclusive use of the Aircraft with Lessee.

     1.25. Unearned Rent. “Unearned Rent” shall be an amount equal to the excess of (i) the total
Rent paid by Lessee to Lessor hereunder during the applicable Lease Year as of the event giving
rise to the need to compute Unearned Rent, over (ii) the actual amount earned by Lessor hereunder
taking into account the actual number of Flight Hours the Aircraft is used by Lessee during the
applicable Lease Year as of the event giving rise to the need to compute Unearned Rent and the
associated rental rate for such hours. The total amount of the Unearned Rent calculated in the
preceding sentence, may be adjusted, as appropriate, based on any associated sales tax refund
actually received by Lessor due to Sales Tax payments previously made on Flight Hours that are not
used by Lessee.

2. AGREEMENT TO LEASE.

     2.1. Lease. Lessor hereby agrees to lease to Lessee, and Lessee hereby agrees to lease from
Lessor, the Aircraft on a non-exclusive basis as provided herein. During the Initial Term, in
exchange for the Rent, Lessee shall be entitled to use the Aircraft for a total of seventy (70)
Flight Hours (the “Leased Hours”). If this Lease is renewed, the number of Leased Hours in a
Renewal Term shall be same number of Leased Hours during the Initial Term unless otherwise agreed
to by the parties.

3

 

     2.2. Lawful and Proper Use Only. Lessee agrees throughout the Term to use the Aircraft in
accordance with the laws and regulations of the United States and any country, state, territory or
municipality into or over which Lessee may operate, and shall further comply with all health and
police regulations and all rules and orders relating to the Aircraft to which the Aircraft may be
subject in its use, operation, maintenance, modification, overhauling and condition during the term
hereof including, but not limited to, maintaining strict adherence to Federal Aviation Regulations
specifically as they relate to Federal Air Regulation Part 91. Lessee shall not employ, permit or
cause the Aircraft to be used in any business which is forbidden by law or is otherwise illicit,
nor knowingly carry illicit or prohibited goods. Lessee shall not use or permit the Aircraft to be
used in any manner or for any purpose which is not covered by an insurance policy or policies which
Lessor or Lessee is required to carry and maintain, or, for any purpose or for the carriage of any
goods of any description excepted or exempted from said policies, or do any other act or permit to
be done anything which could reasonably be expected to invalidate or limit any said insurance
policy. Notwithstanding anything contained herein to the contrary, the Aircraft shall at all times
be primarily used and located in the continental United States and may not be operated outside of
the continental United States except to the Bahamas, Mexico, Caribbean and Canada. The Aircraft
shall be based exclusively at the Home Airport.

     2.3. Non-Exclusive Lease. This Lease is non-exclusive and does not prevent Lessee from
entering into similar arrangements with Third Party Lessees; provided, however, that Lessor use its
best efforts not to enter into any lease with a Third Party Lessee that would preclude Lessee from
using the Aircraft for the number of Leased Hours specified in Section 3. Notwithstanding
the forgoing to the contrary, Lessor makes no representations or warranties regarding the specific
time or specific number of Reserved Flight Days during which the Aircraft will be available to
Lessee or that Lessee will be able to use all of the Leased Hours prior to the end of the Lease
Year. As between Lessee and the Third Party Lessees, use of the Aircraft shall be on a first-come,
first-served basis. Lessee and the Third Party Lessees shall contact the Designated Representative
to schedule use of the Aircraft by reserving the number of Reserved Flight Days that will be
required for a particular trip. Consistent with the non-exclusive nature of the Lease, Lessee may
make arrangements with Third Party Lessees to share Reserved Flight Days (“Joint Trips”) provided
that Lessee and the Third Party Lessee(s) notify the Designated Representative in advance of the
existence of a Joint Trip arrangement and the parties’ agreement as to who will be credited with
the Flight Hours associated with Joint Trip and who will assume operational control of the
Aircraft.

3. TERM AND PAYMENT.

     3.1. Term. Upon the conclusion of the Initial Term and any Renewal Term (defined herein),
this Lease shall be automatically renewed for an additional twelve (12) month period (each a
“Renewal Term”) unless Lessee or Lessor gives at least ninety (90) days prior written notice prior
to the end of the then current Lease Year to the other of its intention not to renew this Lease.
Furthermore, in the event Lessor intends to sell the Aircraft, Lessor shall have the right to
terminate this Lease at any time upon giving Lessee one (1) month prior written notice of
termination. In the event that this Lease is terminated by Lessor prior to the expiration of the
Term for any reason, any Unearned Rent calculated as of the effective
date of the termination of the Lease shall be returned to the Lessee by the Lessor, otherwise the Rent shall be due and
owing to Lessor in all events.

4

 

     3.2. Rent. During the Initial Term, Lessee shall pay Lessor the following amounts as rent for
the use of the Aircraft (“Rent”):

	 	(i)	 	In exchange for Leased Hours, Lessee shall pay annual base in
the amount of $83,020 (the “Base Rent”), which shall be paid in equal monthly
installments as provided herein; and
	 
	 	(ii)	 	In addition to the Base Rent, Lessee shall pay the applicable
Tennessee sales tax (the “Sales Tax”) on the monthly installments of the Base
Rent.

The monthly installments of Base Rent, plus the applicable Sales Tax, shall be paid by Lessee to
Lessor no later than the third (3rd) Business Day of each month during the Lease Year.
No refund will be given to Lessee if Lessee shall not use all of the Leased Hours during a Lease
Year. Unused Leased Hours from one Lease Year will not carryover to any subsequent Lease Years.
If this Lease is extended for one or more Renewal Terms as provided in Section 3.1, the
Base Rent for each Renewal Term shall be negotiated by Lessor and Lessee at the time this Lease is
renewed, and the appropriate Sales Tax shall be determined based on the amount of Base Rent
charged. If this Lease is renewed and the Base Rent or the number of Leased Hours is not
renegotiated, it shall be assumed that the Base Rent and the number of Leased Hours in the
immediately preceding Lease Year shall be the Base Rent and the number of Leased Hours in the new
Lease Year.

     3.3. Accelerated Rent; Additional Rent.

           (A) Base Rent is computed hereunder on the assumption that Lessee will utilize the Leased
Hours on a consistent basis throughout each Lease Year. At the end of each quarter of each Lease
Year or upon the early termination of the Lease by Lessor, Lessor will review Lessee’s usage of the
Aircraft to determine if the Leased Hours have been over utilized on a year-to-date basis. In the
event that Lessee’s year-to-date Flight Hours exceed the prorated number of Leased Hours that
should have been used on a year-to-date basis (e.g., 1/4 of the Leased Hours used through the first
three months of the Lease Year), Lessee shall pay to Lessor, as accelerated rent (the “Accelerated
Rent”), an amount equal to $1,186 multiplied by the number of Flight Hours over the prorated share
of Leased Hours that should have been used as of such date, plus the applicable Sales Tax on such
Accelerated Rent. The Accelerated Rent shall be paid by Lessee within five (5) Business Days of
notice from the Lessor and shall be treated as an advance payment of Base Rent otherwise due
hereunder with the monthly Base Rent due for subsequent months offset by the Accelerated Rent.

           (B) In the event that Lessee’s use of the Aircraft exceeds the Leased Hours for a particular
Lease Year, Lessee shall pay to Lessor within five (5) Business Days of the end of the Flight that
results in such overage, an amount equal to $1,293 times the total number of Flight Hours, or
fraction thereof, Lessee has used the Aircraft during the Lease Year in excess of the Leased Hours
(the “Additional Rent”).

5

 

     3.4. Additional Leased Hours. Once Lessee has used all of the Leased Hours, Lessee may
purchase additional time in one (1) hour blocks at the rate of $1,293 per Flight Hour, plus
applicable Sales Tax.

     3.5. Insurance. The Base Rent charged hereunder shall include Lessee’s proportionate share of
insurance acquired by Lessor pursuant to Section 10.

4. COVENANTS, REPRESENTATIONS AND WARRANTIES.

     4.1. Lessor’s Representations and Warranties. LESSOR SHALL NOT BE DEEMED TO HAVE MADE OR
GIVEN, AND HEREBY EXPRESSLY DISCLAIMS, ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO
THE TITLE, AIRWORTHINESS, CONDITION, MERCHANTABILITY, DESIGN, OPERATION OR FITNESS FOR USE OF THE
AIRCRAFT, OR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO
THE AIRCRAFT except that Lessor represents that it is duly authorized to enter into this Agreement
and to Lease the Aircraft to Lessee hereunder.

     4.2. Lessee’s Representations and Warranties. Lessee covenants, represents and warrants that
on the date of execution of this Agreement and on the Commencement Date:

           (A) Entity Organization and Standing. Lessee is a corporation duly organized and validly
existing in good standing under the laws of the State of Tennessee, and is duly qualified and
authorized to do business and in good standing wherever necessary to substantially carry on its
business and operations and to own its properties and to perform its obligations under this Lease.

           (B) Entity Authority. Lessee has the full power, authority and legal right to enter into and
perform the Lease, and the execution, delivery and performance of the Lease has been duly
authorized by all necessary action on the part of Lessee, does not require any stockholder [member]
approval or approval or consent of any trustee or holders of any indebtedness or obligations of
Lessee, or such required approvals and consents have heretofore been duly obtained by Lessee, and
does not and will not contravene any law, judgment, governmental rule, regulation or order binding
on Lessee or any of its subsidiaries or the chartering documents or by-laws of Lessee or any of its
subsidiaries or result in the breach of, constitute a default under, contravene the provisions of,
or result in the creation of any lien, charge, encumbrance or security interest upon any property
or assets of Lessee pursuant to any indenture, mortgage, contract or other agreement to which
Lessee or any of its subsidiaries is a party or by which it is bound.

           (C) Binding Obligations. The Lease constitutes a valid and legally binding obligation of
Lessee enforceable against Lessee in accordance with the respective terms thereof, except as such
enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors’ rights generally.

6

 

5. RETURN OF AIRCRAFT.

     Each time during the Term in which the Aircraft is returned to Lessor, Lessee agrees that the
Aircraft shall be clean, serviced (potty included) ready for the next flight, airworthy with all
systems functioning properly, in the same condition, and available for the same use within Lessor’s
operations (including, without limitation, the same interior configuration, cockpit
arrangement/instrumentation, other operating systems and components), as when delivered to Lessee
hereunder, reasonable wear and tear excepted, and free and clear of all liens, encumbrances or
rights of others whatsoever except any lien placed on the Aircraft by Lessee.

6. MORTGAGES, LIENS, ETC.

     Lessee will not directly or indirectly create, incur, assume or suffer to exist any mortgage,
pledge, lien, security interest, charge or encumbrance on or with respect to the Aircraft or title
thereto or any interest therein

7. MAINTENANCE, USE, OPERATION, AND REGISTRATION.

     7.1. Maintenance, Use, Operation, and Registration. During the Term, Lessee, at its own cost
and expense, shall take, or cause to be taken on its behalf, the following actions:

           (A) maintain the operational care, use, custody and control of the Aircraft while in the
possession of Lessee on each Reserved Flight Day during the Term hereof, including, but not limited
to, using qualified flight crews approved in advance by the Designated Representative, and
operating the Aircraft so as to keep the Aircraft in as good operating condition as when delivered
to Lessee hereunder, ordinary wear and tear excepted, and to cause the airworthiness certificate of
the Aircraft to be maintained at all times under the Act and the Federal Aviation Regulations;

           (B) pay all of the following operating costs associated with the operation of the Aircraft:
fuel, oil, landing fees, airport charges, catering, flight crew, assessments and FAA charges;

           (C) cause the Aircraft at all times after the Commencement Date to remain duly registered in
the United States, in the name of Lessor;

           (D) maintain all flight records, report and file all Maintenance Transaction Reports, Major
Repair Orders, and any repair receipts incurred while in possession of Aircraft, logs and other
materials required by the FAA to be maintained in respect of the Aircraft;

           (E) maintain, in the English language, all materials required by any applicable Governmental
Authority to be maintained in respect of the Aircraft, and promptly furnish to Lessor upon Lessor’s
request such information as may be required to enable Lessor to file any reports required to be
filed with any Governmental Authority because of Lessor’s ownership of the Aircraft;

           (F) provide all necessary information, if reasonably required by Lessor, to enable Lessor to
monitor all warranty items associated with the Aircraft;

7

 

               (G) notify Lessor or any other party designated by Lessor in a prompt and timely manner of all
incidents and accidents resulting in damage or an Event of Loss with respect to the Aircraft, or
any major component thereof and repair actions taken, in accordance with FAA approved repair
documentation;

               (H) maintain all records, logs, and other materials required to be maintained with respect to
the Aircraft by persons in operational control of the Aircraft under any applicable rules, laws or
regulations and supply all such records, logs and other materials to Lessor or third parties as
shall be necessary in order to implement any and all maintenance programs for the Aircraft and
copies of all records of maintenance performed during the Term, as requested by Lessor;

               (I) immediately report to Lessor and/or the Designated Representative any and all Aircraft
squawks;

               (J) file with the Designated Representative flight logs within twenty-four (24) hours of
completion of any flight showing the number of Flight Hours used by Lessee; and

               (K) promptly furnish to the Designated Representative such information reasonably requested by
Lessor as may be required to enable Lessor to file any reports required to be filed by Lessor or
with any governmental authority.

          7.2. Limitations on Use of Aircraft. Use of Aircraft shall be subject to the following
limitations:

               (A) Except as provided in Section 7.3 below, no trip scheduled by Lessee shall result
in the Aircraft being away from the Home Airport for more than three (3) consecutive Reserved
Flight Days. If any such flight is scheduled by the Lessee, the Aircraft must be returned to the
Home Airport for the Days between the Days that the actual flight(s) take(s) place;

               (B) Lessee may not use the Aircraft for more than 47 Reserved Flight Days during any Lease
Year;

               (C) Cancellation of a Reserved Flight Day less than 48 hours before scheduled departure will
create a one (1) day charge against the Lessee’s Reserved Flight Days;

               (D) Cancellation of a Reserved Flight Day less than 24 hours before scheduled departure will
(i) create a charge against the Lessee’s Leased Hours equal to the calculated Flight Hours for the
scheduled flight (one-way only), and (ii) result in a charge from the pilot equal to the pilot’s
hourly rate multiplied by the calculated Flight Hours for the scheduled flight (one-way only); and

               (E) Lessee shall not use the Aircraft for any purpose or in any manner which would require:

                    (i) Engine shutdowns while in flight;

8

 

                    (ii) Simulated engine out approaches/landings;

                    (iii) Any type of flight training; or

                    (iv) Operations under Federal Air Regulation Part 135.

          7.3. Repositioning. Notwithstanding Section 7.2(A) above, Lessor, in Lessor’s sole
discretion, may permit Lessee to reserve the Aircraft for more than three (3) consecutive Reserved
Flight Days without requiring that the Aircraft be repositioned to its Home Airport as provided in
Section 7.2(A). If Lessor agrees that the Aircraft does not have to be repositioned at the
Home Airport, Lessee shall pay all costs associated with the flight crew for the entirety of the
trip, including, but not limited to, motels, meals, rental cars, per diem, and return flights for
the crew, if necessary. Furthermore, should Lessee desire to use the Aircraft during a Third Party
Lessee’s Reserved Flight Days which requires the repositioning of the Aircraft, any Flight Hours
incurred to reposition the Aircraft (both to pick up the Lessee and to return the Aircraft to the
Third Party Lessee) shall be treated as Leased Hours as to the Lessee.

          7.4. Flight Length; Landings. It is anticipated that Lessee will not use the Aircraft in any
manner that results in an average accumulation of more than 1.2 landings per Leased Hour or an
average accumulation of more than 1.2 engine starts/shutdowns per Leased Hour (each a “Short Leg”).
Should Lessee’s use of the Aircraft result in a Short Leg, following such Short Leg, Lessee will
be billed a Short Leg Fee in the amount of Two Hundred Dollars ($200), which shall be paid within
five (5) Business Days of the Short Leg.

          7.5. Maintenance. Lessor at its own expense shall cause the Aircraft to be serviced,
repaired, overhauled, tested and maintained in compliance with all applicable Federal Aviation
Regulations, including, but not limited to, Part 91 thereof. In no event shall Lessor have any
liability to Lessee for flights that must be cancelled due to any scheduled or unscheduled
maintenance.

8. TAX INDEMNITY.

          8.1. Scope. Lessee shall hold each Indemnitee harmless from liability for any and all taxes,
including, but not limited to, sales, use, personal property, license, documentation, transfer,
fuel, leasing, occupational, value added, excise, environmental and other taxes, levies, imposts,
charges, fees, assessments or duties of any nature, together with any penalties, fines, charges,
additions to tax or interest thereon, imposed by any taxing authority whether domestic or foreign
(collectively, “Taxes”) imposed during the Term against or in respect of Lessor, any Indemnitee or
the Aircraft, by any Federal, state or local government or taxing authority in the United States,
or by any foreign country or any taxing authority or governmental subdivision thereof, upon or with
respect to, based upon or measured by Lessee’s leasing, possession, use, operation (including, but
not limited to, landings and take-offs) of the Aircraft; provided, however, that Lessee shall have
no such obligation with respect to (A) Taxes imposed by a Governmental Authority upon or with
respect to, based on or measured by, the gross or net income of any Indemnitee including any
minimum tax, franchise taxes, tax on doing business, taxes on capital or net worth, and surtax or
similar tax; (B) Taxes which result from the activities of the Lessor or Indemnitee in the
jurisdiction imposing the liability that are unrelated to the transactions contemplated by this Lease, or the operation of the Aircraft by Lessee; (C) Taxes
imposed as a result of a transfer, assignment or other disposition by Lessor of any of its rights
with respect to the Aircraft; or (D) Taxes imposed as a direct and primary result of Lessor’s or
any Indemnitee’s negligence or, any breach by any Indemnitee of its obligations hereunder or
accuracy of any representation, covenant or warranty given by any Indemnitee; (E) Taxes
attributable to events or circumstances which accrue, occur or arise prior to the Commencement Date
or subsequent to the expiration date of this Lease; or (F) Taxes attributable to payments or
distributions from Lessee to any Indemnitee.

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     8.2. Tax Savings. If any Indemnitee realizes a reduction in Taxes that would otherwise be
payable or actually receives a refund of Taxes by reason of an indemnity payment under this section
which reduction or refund was not otherwise taken into account in calculating Lessee’s tax
indemnity obligation then the Indemnitee shall pay to the Lessee an amount equal to the sum of such
Tax refund or reduction together with any interest received thereon.

     8.3. Contest. The Lessor shall promptly advise the Lessee of any Tax audit commenced by any
Governmental Authority that involves a Tax that a Lessee is obligated to indemnify Lessor. Lessor
shall notify Lessee of any Tax return filings, audits or assessments so as to permit Lessee to
timely contest the applicability or amount of any Taxes that Lessee is obligated to indemnify
Lessor. Lessor shall, if requested by Lessee, cooperate in the contest of Taxes that must be
contested in Lessor’s name.

     8.4. Reports. Lessor shall, upon the request of Lessee, provide all information and records
used in the preparation of Tax reports, returns, or statements with respect to any Tax that a
Lessee is obligated to indemnify Lessor.

     8.5. Survival. The provisions of this Section 8 shall survive the expiration or
termination of this Lease.

9. EVENTS OF LOSS.

     9.1. With Respect to the Aircraft. Upon the occurrence of an Event of Loss with respect to
the Aircraft, Lessee shall forthwith (and in any event within two (2) days after such occurrence)
give Lessor written notice of such Event of Loss, and Lessor and Lessee shall proceed diligently
and cooperate fully with each other in the recovery of any and all Insurance Proceeds of insurance
applicable thereto.

     9.2. Replacement of Parts. Lessor will promptly replace all appliances, parts, instruments,
appurtenances, accessories, furnishings and other equipment of whatever nature, excluding engines
(herein called “Parts”), which may from time to time be incorporated or installed in or attached to
Aircraft and which may from time to time become worn out, lost, stolen, destroyed, seized,
confiscated, damaged beyond repair or permanently rendered unfit for use for any reason whatsoever.
In addition, in the ordinary course of maintenance, service, repair, Lessee may, remove Parts,
whether or not worn out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or
permanently rendered unfit for use, provided that Lessee shall immediately replace such Parts. All
replacement Parts shall be in as good operating condition as, and shall have a value and utility at
least equal to, the Parts replaced if such replaced Parts were in the condition and repair required to be maintained by the terms hereof.
All Parts at any time removed from the Aircraft shall remain the property of Lessor no matter
where located, until such time as such Parts shall be replaced by Parts which have been
incorporated or installed in or attached to the Aircraft and which meet the requirements for
replacement Parts specified above. Immediately upon any replacement Part becoming incorporated or
installed in or attached to the Aircraft as above provided, without further act, (i) title to the
replaced Part shall thereupon vest, free and clear in Lessor, and (ii) such replacement Part shall
become subject to this Lease and deemed part of the Aircraft for all purposes hereof to the same
extent as the Parts originally incorporated or installed in or attached to the Aircraft.

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     9.3. Termination of Lease. Upon the occurrence of an Event of Loss (i) resulting in the
complete destruction of the Aircraft or (ii) rendering the Aircraft unfit for use where it is
reasonably expected that the Aircraft will not be useable prior to the expiration of the then
current Lease Year, this Lease shall terminate and any Unearned Rent determined as of the Event of
Loss shall be returned to the Lessee.

10. INSURANCE.

     10.1. Risks to be Insured, Etc. Lessor will at all times carry and maintain in effect, or
cause to be carried and maintained in effect, on the Aircraft, at its own cost and expense, (i)
third party and passenger liability insurance; (ii) property damage liability insurance; (iii)
aircraft all-risk hull insurance for the Aircraft; and (iv) war-risk insurance, in each case in
such amounts and in such form, including without limitation the form of the loss payable clause
and the designation of named insureds, and with such insurance companies, underwriters or funds of
recognized responsibility as is acceptable to Lessor. Lessee’s proportionate share of the cost of
the above described insurance is included in the Base Rent.

     10.2. Optional Insurance. Lessee may at its option insure, or cause to be insured, Lessee’s
leasehold and other interest in the Aircraft for an amount in addition to the amounts required
above. Any payment resulting from such insurance shall be paid over to and retained by Lessee so
long as no Event of Default has occurred and/or is not continuing.

     10.3. Policy Provisions. All liability policies acquired by Lessor may name Lessee as
additional insureds as their respective interests may appear; provided, however, that Lessor’s
insurable interest shall always have priority over the insurable interest of Lessee such that any
amounts paid pursuant to such policies shall be paid first to losses incurred by Lessor, if any,
then to losses incurred by Lessee. All policies obtained by Lessee shall waive any right of
subrogation of the insurers against Lessor.

11. ASSIGNMENT.

     Lessee will not, without the prior written consent of Lessor, assign any of its rights as
Lessee hereunder. Lessor may assign or convey its right, title and interest in and to this Lease to
one or more of its affiliates without the consent of Lessee. Subject to the terms and provisions
of this Section 11, the terms and provisions of this Lease shall be binding upon and inure
to the benefit of Lessor and Lessee and their respective successors and assigns.

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12. EVENTS OF DEFAULT.

     The following events shall constitute Events of Default (whether any such event shall be
voluntary or involuntary or come about or be effected by operation of law or pursuant to or in
compliance with any judgment, decree or order to any court or any order, rule or regulation of any
administrative or governmental body):

     12.1. Lessee shall fail to make any payment of any amount required hereunder when the same
shall become due;

     12.2. Lessee shall fail to carry and maintain in effect insurance on or with respect to the
Aircraft in accordance with the provisions of Section 10 hereof or Lessee shall default in
the performance of its obligations under Section 7 hereof;

     12.3. Lessee shall fail to perform or observe any other covenant, condition or agreement to be
performed or observed by it hereunder and such failure shall continue unremedied for a period of 10
Days after written notice thereof by Lessor;

     12.4. any representation or warranty made by Lessee herein shall at any time prove to have
been untrue or incorrect in any material respect at the time made;

     12.5. Lessee shall apply for or consent to the appointment of a custodian, receiver, trustee,
liquidator or similar officer for it or for all or a substantial part of its property, or shall
make a general assignment for the benefit of creditors, or Lessee shall admit in writing its
inability to pay its debts generally as they become due, or Lessee shall file a voluntary petition
in bankruptcy or a voluntary petition or an answer seeking reorganization in a proceeding under any
bankruptcy laws (as now or hereafter in effect) or an answer admitting the material allegations of
a petition filed against Lessee in any such proceeding, or Lessee shall by voluntary petition,
application, answer, consent or otherwise institute any proceeding, or seek relief under the
provisions of any law now or hereafter existing, relating to bankruptcy, insolvency,
reorganization, arrangement, readjustment of debt, dissolution, liquidation or the like in respect
of the reorganization or winding-up of corporations, or providing for an agreement, composition,
extension or adjustment with its creditors;

     12.6. an order, judgment or decree shall be entered by any court or governmental agency of
competent jurisdiction appointing, without the application or consent of Lessee, a custodian,
receiver, trustee, liquidator or similar officer for Lessee or for all or any substantial part of
its property, or any substantial part of the property of Lessee shall be sequestered, and any such
order, judgment or decree of appointment or sequestration shall remain in force undismissed,
undischarged, unstayed and unvacated for a period of 30 days after the date of entry thereof; or

     12.7. an order for relief shall be entered by any court against Lessee in an involuntary case
under the Federal bankruptcy laws or other insolvency laws (as now or hereafter in effect) or
adjudging Lessee a bankrupt or insolvent, or a petition against Lessee in any such proceeding shall
be filed and shall not be withdrawn or dismissed within 30 days thereafter, or if under the
provisions of any law providing for reorganization or winding-up of corporations which may apply to
Lessee, any court of competent jurisdiction shall assume
jurisdiction, custody or control of Lessee or of any substantial part of its property and such jurisdictions, custody or
control shall remain in force unrelinquished, unstayed and unterminated for a period of 30 days.

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13. REMEDIES.

     Upon the occurrence of any Event of Default and at any time thereafter so long as the same
shall be continuing, Lessor may, at its option, declare this Lease Agreement to be in default by
written notice to such effect delivered to Lessee; and at any time thereafter, unless Lessee shall
have remedied all outstanding Events of Default, Lessor may do one or more of the following with
respect to the Aircraft, as Lessor in its sole discretion shall elect, to the extent permitted by,
and subject to compliance with any mandatory requirements of, applicable law then in effect:

     13.1. terminate the Lease;

     13.2. demand that Lessee, at Lessee’s expense, promptly return the Aircraft to Lessor at the
Home Airport, in the condition and otherwise in accordance with all of the terms of Section
5 hereof, or Lessor, at its option, may enter upon the premises where the Aircraft is located
and take immediate possession of and remove the Aircraft by summary proceedings or otherwise, as
prescribed by law, all without liability to Lessor, whether for the restoration of damage to
property caused by such taking or otherwise;

     13.3. dispose of, hold, use, operate, lease to others or keep idle the Aircraft as Lessor in
its sole discretion may determine, all free and clear of any rights of Lessee;

     13.4. whether or not Lessor shall have exercised, or shall thereafter at any time exercise,
any of its rights under Section 13.1, 13.2, or 13.3 above with respect to
the Aircraft, Lessor, by written notice to Lessee specifying a payment date not earlier than ten
(10) Days from the date of such notice, may demand that Lessee pay to Lessor and Lessee shall
promptly pay to Lessor on the date specified in such notice, any unpaid Rent due up to, but not
including, the rent payment date first preceding the date specified in such notice (together with
interest on such amount at the maximum rate of interest allowable by law at the time from the date
specified in such notice to the date of actual payment); and/or

     13.5. Lessor may exercise any other right or remedy which may be available to it under
applicable law or proceed by appropriate court action to enforce the terms hereof, to rescind this
Lease Agreement as to the Aircraft and to recover damages for the breach hereof.

     In addition, Lessee shall be liable for any and all unpaid Rent and for all legal fees and
other costs and expenses incurred by reason of the occurrence of any Event of Default or the
exercise of Lessor’s remedies with respect thereto, including all costs and expenses incurred in
connection with the return of any Aircraft in accordance with the terms of Section 5 hereof
or in placing such Aircraft in the condition and airworthiness required by said Section. Except as
otherwise expressly provided above, no remedy referred to in this Section 13 is intended to
be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or
otherwise available to Lessor at law or in equity; and the exercise or beginning of exercise by
Lessor of anyone or more of such remedies shall not preclude the simultaneous or later exercise by
Lessor of any or all such other remedies. No express or implied
waiver by Lessor of any Event of Default shall in any way be, or be construed to be, a waiver of any subsequent Event
of Default.

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14. NOTICES.

     All notices, requests, demands, and other communications required or permitted hereunder shall
be in writing and shall be deemed to have been given if delivered by hand or by nationally
recognized overnight courier, or mailed certified or registered mail, return receipt requested,
with postage prepaid, or sent by facsimile or other electronic transmission, as follows:

(a) If to Lessor, to:

Michael C. Crabtree, President

JLC Aviation LLC

12347 Vista Brook Lane

Knoxville, TN 37934

Phone: 865-342-3620

Fax: 865-437-2620

With a copy to:

Jim Fox

Ambassador Jet Service, LLC

P.O. Box 32067

Knoxville, Tennessee 37930

Telephone: 865-690-2200

Telecopier: 865-690-3666

(b) If to the Lessee, to:

IdleAire Technologies Corporation

410 N. Cedar Bluff Road, Suite 410

Knoxville, TN 37923

Attn:

15. MISCELLANEOUS.

     Any provision of this Lease which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
To the extent permitted by applicable law Lessee hereby waives any provision of law which renders
any provision hereof prohibited or unenforceable in any respect. No term or provision of this Lease
may be changed, waived, discharged or terminated totally, but only by an instrument in writing
signed by the party against which the enforcement of the change, waiver, discharge or termination
is sought. No waiver by Lessor of any default hereunder by

14

 

Lessee
shall extend to any subsequent or other default. In the event that any date for the payment of any amount due
hereunder shall not be a Business Day, then such payment need not be made on such date but may be
made on the next succeeding Business Day with the same force and effect as if made on the due date,
and no interest on such payment shall accrue for the period from such due date to and including the
next succeeding Business Day. The captions in this Lease are for convenience of reference only and
shall not define or limit any of the terms or provisions hereof. This Lease is being delivered in
the State of Tennessee and shall in all respects be governed by, and construed in accordance with,
the laws of the State of Tennessee, including all matters of construction, validity and
performance.

16. INDEMNIFICATION.

     Lessee agrees to indemnify, reimburse, and hold harmless Lessor and its successors, mortgagee,
assigns, agents, employees or servants on an after tax basis, from and against any and all claims,
damages, losses, liabilities, demands, suits, judgments, causes of action, legal proceedings,
whether civil or criminal, penalties, fines, other sanctions, and any costs and expenses in
connection therewith, including attorney’s fees and expenses (any and all of which are hereafter
referred to as “Claims”) which in any way may result from or arise out of or in relation to (i) the
condition, Lease, possession, use, or operation of the Aircraft either in the air or on the ground
during the Term (except Claims arising out of the gross negligence or willful misconduct of Lessor)
or (ii) any defect in the Aircraft arising from the maintenance, service, repair, overhaul, or
testing of the Aircraft, during the Term, regardless of when such defect shall be discovered,
whether or not the Aircraft is at the time in the possession of Lessee, and regardless of where the
Aircraft may then be located.

     Lessee hereby waives and releases any Claim now or hereafter existing against Lessor, its
successors or assigns on account of any Claims for or on account of or arising or in any way
connected with injury to or death of personnel of Lessee or damage to property of Lessee or the
loss of use of any property which may result from or arise in any manner out of or in relation to
the ownership, leasing, condition, use or operation of the Aircraft, either in the air or on the
ground during the Term, or which may be caused during such Term by any defect in the Aircraft from
the material or any article used therein or from the testing, or use thereof or from any
maintenance, service, repair, overhaul, or testing of the Aircraft regardless of when such defect
may be discovered, whether or not the Aircraft is at the time in the possession of Lessee, and
regardless of the location of the Aircraft at any such time.

     Lessee hereby agrees, and shall have the rights, to assume and conduct promptly and
diligently, at its sole cost and expense, the entire defense of Lessor against any such Claim or
claim.

     The indemnities contained in this Section 16 shall continue in full force and effect
notwithstanding the expiration or other termination of this Lease and are expressly made for the
benefit of, and shall be enforceable by, Lessor. Notwithstanding such survival, such
indemnification obligation shall only apply to those acts or omissions which occur during the Term,
unless otherwise extended by the exercise of remedies under Section 13 by Lessor.

15

 

17. TRUTH IN LEASING STATEMENT UNDER SECTION 91.23 OF THE FEDERAL AVIATION REGULATIONS.

     17.1. DURING THE 12 MONTHS PRECEDING THE EXECUTION OF THIS AGREEMENT, THE AIRCRAFT HAS BEEN
MAINTAINED AND INSPECTED IN ACCORDANCE WITH PART 91 OF THE FAR. THE PARTIES HEREBY CERTIFY THAT
THE AIRCRAFT WILL CONTINUE TO BE INSPECTED AND MAINTAINED UNDER PART 91 OF THE FAR DURING THE TERM
OF THIS AGREEMENT.

     17.2. LESSEE, WHOSE NAME IS IDLEAIRE TECHNOLOGIES CORPORATION, SHALL HAVE OPERATIONAL CONTROL
OF ALL FLIGHTS CONDUCTED UNDER THIS AGREEMENT.

     17.3. AN EXPLANATION OF THE FACTORS BEARING ON OPERATIONAL CONTROL AND THE PERTINENT FEDERAL
AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FLIGHT STANDARDS DISTRICT OFFICE.

     17.4. THE “INSTRUCTIONS FOR COMPLIANCE WITH TRUTH IN LEASING REQUIREMENTS” ATTACHED HERETO AS
EXHIBIT A ARE INCORPORATED HEREIN BY REFERENCE.

     IN WITNESS WHEREOF, Lessor and Lessee have each caused this Agreement to be duly executed as
of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	LESSOR:

	 	 	 	 	 	LESSEE:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	JLC AVIATION LLC	 	IDLEAIRE TECHNOLOGIES
	 	 	 	 	 	 	   CORPORATION
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 /s/ Michael C. Crabtree
	 	 	 	By:
	 	 /s/ Paul Boyd	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Michael C. Crabtree, President
	 	 	 	Its:
	 	CFO & Treasurer	 	 

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EXHIBIT A

INSTRUCTIONS FOR COMPLIANCE WITH “TRUTH IN LEASING”

REQUIREMENTS

	1.	 	Mail a copy of the lease agreement to the following address via
certified mail, return receipt requested, immediately upon execution of the
agreement (14 C.F.R. 91.23 requires that the copy be sent within twenty-four
hours after it is signed):

Federal Aviation Administration

Aircraft Registration Branch

ATTN: Technical Section

P.O. Box 25724

Oklahoma City, Oklahoma 73125

	2.	 	Telephone the nearest Flight Standards District Office at least
forty-eight hours prior to the first flight under this lease agreement.

	3.	 	Carry a copy of the lease agreement in the aircraft at all times.

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