Document:

exv10w4

 

Exhibit 10.4

GULFSTREAM INTERNATIONAL AIRLINES/UNITED AIRLINES

CODE SHARE AND REGULATORY

COOPERATION AGREEMENT

This Agreement is made and entered into by and between UNITED AIR LINES, INC., with its principal
place of business at 1200 East Algonquin Road, Elk Grove Township, Illinois 60007 (“UA”) and
Gulfstream International Airlines, Inc., with its principal place of business at 1815 Griffin Road,
Suite 400, Dania Beach, Florida 33004 (“3M”), each or both parties individually or collectively
referred to as “Carrier” or “Carriers” respectively.

	1.	 	INTRODUCTION

3M and UA had entered into a Code Share Agreement dated 04/21/1994 referred to as United
Contract Number 122641, in order to increase each Carrier’s opportunities to offer
competitive and cost effective air transportation services between points in and beyond the
United States and the Bahamas. The agreement also improves the quality of the interline air
transportation and cargo services they now offer so as to increase the use of those services
by the traveling and shipping public. The Carriers now wish to update and revise certain
terms of that agreement, as amended, by superseding and replacing that agreement with this
Agreement. This Agreement establishes binding obligations, between the Carriers, expresses
the Carriers intentions, and sets forth a framework that provides the basis to accomplish
these goals through subsequent agreements and activities.

	2.	 	UNDERLYING OPERATIONAL CONCEPT

The Carriers shall use a phased approach to develop and implement parallel marketing and
operational programs to create new, value added passenger and cargo services and cost
efficiencies by taking advantage of each Carrier’s inherent market strengths.

	3.	 	OBJECTIVES OF THE 3M/UA RELATIONSHIP

Through development of the operational relationship contemplated by this Agreement, subject
to any and all necessary governmental and regulatory approvals, 3M and UA have implemented
Code Share operations as defined in Article 4A and further described in Attachment 1,
Sections A and B.
	 
	 	 	This Agreement is not intended to restrict either Carrier’s rights to pursue, either
independently or collectively, additional access between any points through either route
acquisition or the normal government to government bilateral process.

	4.	 	PROGRAMS

The Carriers shall develop and implement specific programs to support the objectives defined
by this Agreement. The Attachments to this Agreement outline specific actions and
responsibilities for implementing these programs. Each of the programs may be incorporated
into an existing 3M/UA contract or a new contract, as appropriate. In summary, subject to
any and all applicable governmental laws, rules and regulations, these programs are:

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	 	A.	 	CODE SHARE

The Carriers shall develop, in a phased approach; operations, which include using
each other’s two-letter airline designator code on the following routes, as further
specified in Attachments 1 and 1A (“Code Share”):

[*].

	 	B.	 	CODE SHARE EMERGENCY PROCEDURES

In the event of an incident involving a Code Share flight, both Carriers agree to
implement the emergency procedures specified in Attachment 2.

	 	C.	 	REGULATORY COOPERATION

The Carriers shall work together to secure the underlying governmental and other
approvals necessary to implement this marketing relationship.

	 	D.	 	PUBLISHED FARES

The carriers agree to participate in each other’s published fares.

	 	E.	 	PRORATES

On the basis of reciprocity and comity, 3M and UA shall provide broader access to
each other’s system through the creation of a Special Prorate Agreement to support
the overall program and to stimulate incremental traffic from 3M to UA, and UA to
3M. This shall include special reciprocal protection for 3M or UA passengers on
delayed, canceled or oversold flights.

	 	F.	 	FREQUENT FLYER

The Carriers shall cooperate to further enhance passenger loyalty to the 3M/UA
product through frequent flyer or loyalty programs as further specified in
Attachment 3 (“Frequent Flyer Cooperation”).

	 	G.	 	PREFERENTIAL SELLING

The Carriers shall implement procedures at their respective reservations sales
offices to sell the other Carrier, on a “second to on-line” basis and in lieu of
competitive off-line offerings in the agreed Code Share markets.

	 	H.	 	SALES

With regard to Inventory Management for Code Share flights the Carriers acknowledge
and agree that this is Agreement does not provide for guaranteed block space
reservations. Accordingly, neither UA nor 3M is purchasing or guaranteeing the seats
allocated to it by the other. Rather, the seats are allocated only for purposes of
inventory management. 3M and UA shall each manage, market and sell its allocation of
seats on the Code Share flights under its own respective airline designator code.
The Carriers agree to communicate as necessary to facilitate such an arrangement.

	 	I.	 	CARGO

On the basis of reciprocity and comity, 3M and UA shall provide broader access to
each other’s flight route system through the creation of Cargo (mail and/or freight)
Agreement to support the Code Share program and to stimulate

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	 	 	 	incremental cargo between the Carriers. The scope of such cargo agreement shall be
on code share routes described herein.

	5.	 	TERM

This Agreement is effective as of April 21, 2003, and shall continue thereafter for three
(3) years; provided, however, that this Agreement may be terminated by either party at that
party’s election for convenience and, without cause upon one hundred and eighty (180) days’
prior written notice.

	6.	 	COMPLIANCE WITH GOVERNMENT AND SAFETY REQUIREMENTS

	 	A.	 	The Carriers represent and warrant that all air transportation services
performed by it pursuant to this Agreement or otherwise shall be conducted in full
compliance with all applicable federal, state and local laws, statutes, orders, rules;
and regulations.
	 
	 	B.	 	The Carrier that originates the customer travel (provides all boarding passes
and checks the customer luggage to his final destination) shall assure that the
customer is properly documented for entry into the destination country and properly
documented for any transit points enroute. Any fines, penalties, deportation and
detention expenses resulting from violations of government entry or transit
requirements, even for passengers that shall fully engage in illegal entry tactics,
shall be the sole responsibility of the Carrier that originates the customer travel and
such Carrier shall be considered an Operating Carrier pursuant to Article 15, and shall
indemnify the other Carrier.
	 
	 	C.	 	3M represents and warrants that it is in compliance with the U.S. Department of
Defense (DoD) Quality and Safety Requirements (and any other applicable governmental
quality or safety requirement) and continues to comply with all applicable Federal
Aviation Regulations (F.A.R.). 3M further warrants that it shall maintain compliance
with these requirements for the term of this Agreement. Any failure to maintain such
compliance shall immediately be brought to UA’s attention together with the corrective
actions taken by 3M or a correction action plan. Any noncompliance with any
requirements or corrective action plans shall be grounds for partial or complete
suspension or termination by UA, without further liability, of this Agreement or any of
the terms or conditions of this Agreement; but, with reservation of all other rights
and remedies available to UA. Additional safety reviews and audits may be required at
UA’s discretion and 3M shall cooperate with all such reviews and audits.

	7.	 	EXCLUSIVITY

This Agreement is non-exclusive and does not preclude either UA or 3M from entering into or
maintaining existing marketing relationships, including Code Share Agreements, with other
air transportation companies.
	 
	8.	 	TRADEMARKS

Neither Carrier shall use any trademark, trade name, logo, or service mark of the other
without the prior written consent of the other.

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	9.	 	CONFIDENTIALITY

	 	A.	 	Subject to Articles 9B and 9C, and except in any proceeding to enforce any of
the provisions of this Agreement, neither party shall, without the prior written
consent of the other, use, publicize or disclose to any third party, either directly or
indirectly, any of the following (hereinafter “Confidential Information”):

	 	(1)	 	this Agreement or any of the terms or conditions of this
Agreement; or
	 
	 	(2)	 	any confidential or proprietary information or data, either
oral or written, received from and designated as such by the disclosing
Carrier.

	 	B.	 	If either Carrier is served with a subpoena or other legal process requiring
the production or disclosure of any Confidential Information, then that Carrier, before
complying, shall immediately notify the non-disclosing Carrier and the non-disclosing
Carrier shall have a reasonable period of time to intervene and contest disclosure or
production.
	 
	 	C.	 	If a governmental authority requests either Carrier to produce or disclose to
the authority this Agreement or any of the terms or conditions of this Agreement, such
Carrier, at its option and after notifying the other Carrier, may produce or disclose
the requested document or information.
	 
	 	D.	 	Upon termination of this Agreement, all Confidential Information, including any
copies thereof made by the receiving party, must be returned to the disclosing Carrier.

	10.	 	FORCE MAJEURE

Neither Carrier shall be liable for delays or failure in performance under this Agreement
caused by acts of God, war, strikes, labor disputes, work stoppage, fire, acts of government
or any other cause, whether similar or dissimilar, which is beyond the control of that
Carrier.
	 
	11.	 	NATURE OF RELATIONSHIP BETWEEN 3M AND UA

The relationship of the Carriers hereto is that of independent contractors. Nothing in this
Agreement is intended or shall be construed to create or establish any partnership or joint
venture relationship between the Carriers.

	12.	 	TERMINATION FOR CAUSE

	 	A.	 	If either Carrier (the “Defaulting Party”) becomes insolvent or is subject to
liquidation; if the other Carrier (the “Insecure Party”) has evidence that the
Defaulting Party is not paying its bills when due without just cause; if the Defaulting
Party takes any step leading to its cessation as a going concern; or if the Defaulting
Party either ceases or suspends operations for reasons other than a strike, then the
Insecure Party may immediately terminate this Agreement on notice to the Defaulting
Party unless the Defaulting Party immediately gives adequate assurance of the future
performance of this Agreement by establishing an irrevocable letter of credit issued by
an bank acceptable to the Insecure Party, on terms and conditions acceptable to the
Insecure Party, in an amount sufficient to cover all amounts potentially due from the
Defaulting Party under this

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	 	 	 	Agreement, which may be drawn upon by the Insecure Party if the Defaulting Party
does not fulfill its obligations under this Agreement in a timely manner.

	 	B.	 	If either Carrier (the “Defaulting Party”) fails to observe or perform any of
its material obligations under this Agreement and if this failure continues for a
period of thirty (30) days after written notice to the Defaulting Party thereof (except
for any payments due, where the period to cure such non-payment shall be five [5] days
after notice) then, without prejudice to any other rights or remedies the other party
may have, the other Carrier may terminate this Agreement as of the expiration date of
this notice period.

	13.	 	POST-TERMINATION RIGHTS

Exercise by either Carrier of its right to terminate under any provision of this Agreement
shall not affect or impair its right to enforce its other rights or remedies under this
Agreement. All obligations of each Carrier that have accrued before termination or that are
of a continuing nature shall survive termination, including, without limitation, any
confidentiality and indemnity provisions.
	 
	14.	 	NON-WAIVER

Any previous waiver, forbearance, or course of dealing shall not affect the right of either
Carrier to require strict performance of any provision of this Agreement.
	 
	15.	 	GENERAL INDEMNIFICATION

The Carrier operating the Code Share flight or providing goods or services hereunder (the
“Operating Carrier”) agrees to indemnify and hold harmless the other Carrier (the “Marketing
Carrier”), its directors, officers, employees, agents, subcontractors, and affiliates (each
an “Indemnitee”) from and against any and all liabilities, claims, demands, suits, damages,
and losses, including, without limitation, all reasonable attorneys’ fees, costs and
expenses in connection therewith or incident thereto (including, without limitation,
attorneys’ fees incurred by the Marketing Carrier in establishing its right to
indemnification hereunder) (collectively referred to in this Article as “Claims”) of third
parties for death or personal injury to any person or persons whomsoever (including, without
limitation, the Operating Carrier’s employees, but excluding the Marketing Carrier’s
employees) and for loss of, damage to, destruction of, any property whatsoever (including,
without limitation, any loss of use thereof), in any manner arising out of or in any way
connected with goods or services furnished or to be furnished by the Operating Carrier under
this Agreement, all whether or not arising in tort or occasioned in whole or in part by the
negligence of the Marketing Carrier of any type or degree. The Operating Carrier shall, at
the request of the Marketing Carrier, negotiate and defend any Claim brought against any
Indemnitee or in which any Indemnitee is joined as a party defendant based upon any other
matters for which the Operating Carrier has agreed to indemnify each Indemnitee as provided
above. The Operating Carrier’s obligations under this Article shall survive the expiration
or termination of this Agreement.

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	16.	 	INSURANCE

	 	A.	 	3M shall procure and maintain (i) third party liability insurance, including
war risks perils for a minimum combined single limit (bodily injury/property damage) of
U. S. $ 300,000,000 (three hundred million U.S. dollars) for each occurrence and
(ii)Hull All Risks and Hull War Risks insurance covering its fleet. 3M shall increase
such aviation liability insurance to U.S. $ 500,000,000 (five hundred million U.S.
dollars) should they ever start flying aircraft with 50 or more seats. UA shall be
named as additional insured on 3M’s policies when 3M is acting as the Operating
Carrier. 3M, as Operating Carrier, shall waive their rights of subrogation against UA.
The insurance policies shall be endorsed with severability of interest clauses. 3M
shall furnish to UA certificates of insurance evidencing the foregoing coverage prior
to the commencement of this Agreement.
	 
	 	B.	 	3M and UA shall each procure at its own cost employer’s liability insurance and
worker’s compensation (or equivalent) against the liabilities of each respective
Carrier to its employees in an amount not less than required by applicable law.
	 
	 	C.	 	In the event of cancellation or adverse material change, the additional insured
shall be provided not less than thirty (30) days prior written notice except that in
the case of Hull War Risks insurance such period of notice shall be seven (7) days or
such lesser period as may be available in accordance with the applicable insurance
policy requirements.

	17.	 	EXCLUSION OF CONSEQUENTIAL DAMAGES

NEITHER CARRIER SHALL BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, INCLUDING LOST REVENUES, LOST PROFITS, OR LOST PROSPECTIVE ECONOMIC ADVANTAGE,
WHETHER OR NOT FORESEEABLE AND WHETHER OR NOT FORESEEABLE AND WHETHER OR NOT BASED ON
CONTRACT, TORT, WARRANTY CLAIMS OR OTHERWISE IN CONNECTION WITH THIS AGREEMENT, AND/OR THE
PRODUCTS OR SERVICES PROVIDED HEREUNDER, AND EACH CARRIER HEREBY RELEASES AND WAIVES ANY
CLAIMS AGAINST THE OTHER CARRIER REGARDING SUCH DAMAGES.

	18.	 	NOTICES

Any notices required to be sent under this Agreement shall be sent by first class mail,
postage prepaid, or any more expedient written means.
	 
	 	 	If to 3M, notices shall be addressed as follows:

Gulfstream International Airlines, Inc.

1815 Griffin Road, Suite 400

Dania Beach, Florida 33004

Attn: President and C.E.O.

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If to UA, notices shall be addressed as follows:

United Air Lines, Inc.

P.O. Box 66100

Chicago, Illinois 60666

Attn: Sr. Vice President — International

Notices sent via electronic means (e.g., telex, facsimile) shall be effective immediately if
received prior to 5:00 p.m. local time of the recipient. All other notices shall be
effective the first business day after receipt

	19.	 	GOVERNING LAW AND JURISDICTION

This Agreement and any dispute arising under or in connection with this Agreement, including
any action in tort, shall be governed and construed by the laws of the State of Illinois
U.S.A., without regard to any conflict of laws principles which may direct the application
of laws of any other jurisdiction. The courts located within the county of Cook of the State
of Illinois, U.S.A., shall have exclusive jurisdiction to settle any dispute arising out of
or relating to this Agreement, the Carriers hereby consenting to jurisdiction and venue
herein.
	 
	20.	 	SEVERABILITY

Each provision of this Agreement shall be valid and enforced to the furthest extent
permitted by law. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision.

	21.	 	ASSIGNMENT AND CHANGE OF OWNERSHIP

	 	A.	 	Neither Carrier may assign or otherwise transfer any of its rights or
obligations under this Agreement to any third party without the prior written consent
of the other.
	 
	 	B.	 	Should for any reason whatsoever the ownership of either Carrier change such
that another air carrier or affiliate of an air carrier acquires a thirty percent (30%)
or more ownership interest in either party, then within thirty (30) days of such
occurrence either party may request renegotiation of this Agreement and, failing
successful renegotiation within sixty (60) days of the request to renegotiate, either
party may terminate this Agreement upon thirty (30) days notice to the other party.

	22.	 	ENTIRE AGREEMENT

This Agreement, including any and all Attachments, constitutes the entire agreement and
understanding of the Carriers relating to the subject matter hereof, and supersedes all
prior agreements, including, without limitation, that certain Code Share agreement, as
amended, between the carriers dated 04/21/’94, whether oral or written, express or implied,
between the Carriers concerning the subject matter hereof. In the event that any terms
herein conflict with the terms of any interline or other agreement between the Carriers,
then the terms herein shall prevail, but shall not supplant any conflicting terms in the
other agreement. This Agreement may be modified only by further written agreement signed by
all of the Carriers hereto.

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	23.	 	EXISTING OBLIGATIONS

UA represents and warrants that the terms of this Agreement do not violate any existing
obligations or contracts of UA. 3M represents and warrants that the terms of this Agreement
do not violate any existing obligations of 3M. Each Carrier shall defend, indemnify and hold
the other harmless from and against any and all claims, demands or causes of action which
are hereafter made or brought against it alleging any such violation.
	 
	24.	 	NON-ENGLISH VERSION

If any non-English interpretive versions of this Agreement are created, then, in the event
of a conflict between this English version and any non-English version, this English version
will control.
	 
	25.	 	CAPTIONS

The captions appearing in this Agreement have been inserted as a matter of convenience and
in no way define, limit, or enlarge the scope of this Agreement or any of its provisions.

IN WITNESS WHEREOF, the Carriers hereto have by their duly authorized officers executed this
Agreement as of the dates set forth below.

	 	 	 
	GULFSTREAM INTERNATIONAL, INC.

	 	UNITED AIR LINES, INC.
	 
	 	 
	By: /s/ Thomas L. Cooper

	 	By: /s/ G.L. Atkinson
	 

	 	 

	 
	 	 
	Name Thomas L. Cooper

	 	Graham Atkinson
	 
	 	 
	Title: President & C.E.O.

	 	Sr. Vice President — International
	 
	 	 
	Date: April 23, 2003

	 	Date: April 21, 2003
	 

	 	 

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ATTACHMENT 1

CODE SHARING

	A.	 	City pairs displayed as UA*
	 
	 	 	Subject to all necessary regulatory approvals, deployment of IATCI One Stop Check-In, and
completion of necessary operational support arrangements, UA shall display its UA
designation code on selected flights, operated by 3M:

UA*

3M Operated Flights Between and Beyond

[*]

The city pairs listed in Sections A shall be handled on a manual basis by the Carriers if
necessary, as outlined in Attachment IA.

	B.	 	Inventory Management

The Carriers shall establish mutually agreed inventory management procedures for Code Share
flights, in accordance with the guidelines outlined in Article 4 of this agreement
(“Programs”), and including for manually managed inventory allocations the areas for
cooperation outlined in Attachment 1A.
	 
	C.	 	Code Share Schedule Operations

The Carriers shall:

	 	(1)	 	establish a dedicated flight number range for use by UA for use on 3M Code
Share flights.
	 
	 	(2)	 	establish an automated transfer of flight schedule information via an industry
standard SSIM which includes comment 10 and 50 records to identify the Code Share
relationships. A “custom SSIM” from 3M shall be used in place of the OAG file to
maintain 3M’s schedule in the Apollo and Galileo computer reservation systems.
	 
	 	(3)	 	establish a communications procedure to advise the other of passenger
reaccomodation plans in the event of schedule changes involving a Code Share flight.

	D.	 	Interline Accounting
	 
	 	 	The Carriers shall establish all necessary accounting procedures, in accordance with
applicable IATA or ACH guidelines, including sampling methodology, to facilitate settlement
of all UA/3M interline transportation, including code share.

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ATTACHMENT lA

BUSINESS REQUIREMENTS CODE SHARE

TABLE OF CONTENTS

	1.0	 	OVERVIEW

	 	1.1	 	Introduction
	 
	 	1.2	 	Objective

	2.0	 	REQUIREMENTS

	 	2.1	 	Availability
	 
	 	2.2	 	Booking/Ticketing/CRS Fees

	 	2.2.1	 	Sell
	 
	 	2.2.2	 	Disclaimer
	 
	 	2.2.3	 	Group Handling
	 
	 	2.2.4	 	Teletype (TTY)
	 
	 	2.2.5	 	Customer Inquiries

	 	2.3	 	Inventory Maintenance

	 	2.3.1	 	Inventory Control
2.3.2 Link Sells
2.3.3 Waitlist

	 	2.4	 	Through Check In
	 
	 	2.5	 	Schedule Maintenance

	 	2.5.1	 	Schedule Dissemination
	 
	 	2.5.2	 	Schedule Change
	 
	 	2.5.3	 	Passenger Reaccommodation
	 
	 	2.5.4	 	Seat Reaccommodation

	 	2.6	 	Accounting Systems
	 
	 	2.7	 	Frequent Flyer
	 
	 	3.0	 	Hardware

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	1.0	 	OVERVIEW
	 
	 	 	The purpose of this Attachment lA is to provide a method that shall allow 3M’s code to be
reflected on certain UA flights. Each Carrier shall perform this procedures in a fully
automated manner, or manually until a fully automated method can be implemented.

	2.0	 	REQUIREMENTS
	 
	 	 	General Requirement
	 
	 	 	Support code share for the city pairs as set forth on Attachment 1, paragraph A.

	 	2.1	 	Availability
	 
	 	 	 	The Carrier shall provide the capability to display the service as an on-line
connection using the designated Carrier’s code (UA or 3M).
	 
	 	2.2	 	Booking/Ticketing/CRS Fees

	 	2.2.1	 	Sell
	 
	 	 	 	The Carriers shall provide support for segment sell of the on-line
connection by line number from availability.
	 
	 	 	 	The Carriers shall provide support for the manual sell of the connection
using either the code share flight number or the base flight number.
	 
	 	 	 	The Carriers shall provide for any fees associated with either ticket
handling fees or CRS fees related to transportation of a passenger to be
paid, by segment, by the Operating Carrier. 3M and UA shall establish a
process to ensure that all such fees are appropriately accounted for. The
Operating Carrier shall be responsible for CRS fees at the level of
participation of the Marketing Carrier.
	 
	 	 	 	In this connection, the Marketing Carrier shall be obligated to provide the
Operating Carrier only the CRS vendor’s invoice and the CRS vendor’s
generated microfiche or hard copy of bookings for flights of Operating
Carrier, and the Operating Carrier must reimburse the Marketing Carrier
based upon the data reflected in those documents without adjustment.
	 
	 	2.2.2	 	Disclaimer
	 
	 	 	 	The Carriers shall provide for a disclaimer to accompany a sell of a
shared-code flight identifying the Carrier operating the flight. The
disclaimer must be distributed to CRS’s and to schedule dissemination
services such as the Official Airline Guide (OAG).

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	 	2.2.3	 	Group Handling
	 
	 	 	 	Groups shall be booked as they are currently booked.
	 
	 	2.2.4	 	Teletype (TTY)
	 
	 	 	 	Teletype processing shall be handled for UA or 3M designated flights as it
is currently handled today.

The information shall be updated within the PNR of the respective system
automatically and shall be passed with the PNR on the exchange of PNRs.
	 
	 	2.2.5	 	Customer Inquiries
	 
	 	 	 	Procedures shall be established through the reservations groups to be able
to identify where a PNR exists and be able to direct the customer
appropriately.

	 	2.3	 	Inventory Maintenance

	 	2.3.1	 	Inventory Control
	 
	 	 	 	The operating Carrier shall develop a method for inventory control on each
Code Share flight to/from the designated cities and shall maintain control
of that inventory. The designated Carrier shall create a pseudo flight with
the appropriate inventory. The yield management groups of both Carriers
shall agree on the following:

	 	•	 	A method of managing inventory
allocations on shared-code flights.
	 
	 	•	 	Class of service and class of service equivalency

	 	2.3.2	 	Link Sells
	 
	 	 	 	Allow a shared-code flight to be sold from an availability display provided
to another Carrier.
	 
	 	2.3.3	 	Waitlist
	 
	 	 	 	Waitlists shall be open at start up of the Code Share arrangement.

	 	2.4	 	Through Check In

Provide the capability to through-check customers via the use of IATCI standards.

	 	2.5	 	Schedule Maintenance

	 	2.5.1	 	Schedule Dissemination
	 
	 	 	 	Each Carrier shall establish an automated transfer of flight schedule information
via an industry standard SSIM which includes comment 10 and 50 records to

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	 	 	 	identify the Code Share relationships. A “custom SSIM” from 3M shall be used in
place of the 3MG file to maintain 3M’s schedule in the Apollo and Galileo computer
reservation systems.

	 	2.5.2	 	Passenger Reaccomnaodation
	 
	 	 	 	Reaccommodations shall be worked through close coordination between the reservations
groups of the two Carriers.

	 	 	 	 	 
	3M Andy Shin

	 	HDQKK3M
	 	954-266-3000
	UA Karen Tolloff

	 	HDQRZUA
	 	847-700-5815

	 	2.5.3	 	Flight Information
	 
	 	 	 	3M and UA shall evaluate procedures for exchanging and updating FLIFO information in
each other’s systems. Procedures and responsibility shall be determined and mutually
agreed by the Carriers.

	 	2.6	 	Accounting Systems
	 
	 	 	 	Each Carrier shall establish accounting procedures in accordance with Attachment 1 paragraph
E. Any special prorates must be communicated to accounting to ensure proper billing
	 
	 	2.7	 	Hardware
	 
	 	 	 	Each Carrier shall provide and pay for installation and maintenance of computer equipment
necessary for the other to support Code Share operations. This equipment may include, but is
not limited to check-in terminals, b3Mrding pass printers and bag tag printers. Any monthly
charges associated with such equipment shall be paid by the Carrier supplying said
equipment.
	 
	 	 	 	Upon termination of Code Share operations, for any reason, the Carriers shall return any
equipment owned by the other party.

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ATTACHMENT 2

CODE SHARE EMERGENCY PROCEDURES

	 	 	In order to properly prepare and plan coordinated communications efforts between the Carriers in
the event of an emergency, as defined below, involving a Code Share flight, both Carriers shall (I)
exchange and update the appropriate telephone numbers and SITA addresses of the operating Carrier
to which the code sharing Carrier may refer customer/relative inquiries in the event of an
emergency and (ii) discuss any other necessary coordinated emergency response procedures. Although
each situation must be evaluated on its own merit, common sense must prevail as a guide for all
parties to follow.
	 
	 	 	Definitions:

-Emergency

Any occurrence involving a Code Share flight that results in injury or death, or has the potential
for injury or death to any person or the loss or damage or the potential for loss or damage to
private, public, or Carrier property.

-Aircraft Accident

Any occurrence associated with the operation of an aircraft, which takes place between the time the
captain has released the parking brake for pushback or taxi and has set the parking brake and all
checklists are completed, in which any person who has boarded the aircraft with the intention of
flight suffers death or serious injury or in which an aircraft receives substantial damage.

-Hijacking (Air Piracy)

Any seizure or exercise of control by force or violence, or threat of violence, and with wrongful
intent of an aircraft in air commerce.

-Red Alert

The classification for a situation where a major problem exists that may result in an accident as
defined above. Examples include a landing gear failure to extend, fire in flight, or other aircraft
damage that shall likely require outside agencies such as police, fire, ambulances, and physicians
to respond.
	 
	 	 	Both Carriers agree to comply with the relevant requirements of government agencies having
jurisdiction in respect of an Emergency, Aircraft Accident, Hijacking or Red Alert.
	 
	 	 	Appropriate UAL telephone numbers in the event of an emergency as described above:

	 	 	 
	UAL Shift Manager (24 Hours)
	 	 
	847 700-6295

	 	(Phone)
	847 700-2005

	 	(FAX)
	HDQOPUA

	 	(SITA Address)

Appropriate 3M telephone numbers in the event of an emergency as described above:

	 	 	 
	Vice President of Safety
	 	 
	Mr. Doug Smith

	 	(Contact)
	(321) 917-9909

	 	(Cellular Phone)
	(321) 751-1944

	 	(Home)
	(321) 752-7351

	 	(FAX)
	(321) 752-7351

	 	(Office)

- 14 -

 

Any change to the above referenced phone numbers or contacts is to be communicated to the
above referenced SITA addresses with a request for a confirming telex back to the originator
to acknowledge receipt.

	B.	 	EMERGENCY PLAN

	 	(1)	 	The Carriers mutually agree to subscribe to the IATA Standards and Recommended
Practices for the Assistance of Survivors and Families of Passengers in the Aftermath
of an Aircraft Accident or Incident.
	 
	 	(2)	 	In addition to the aforementioned procedures, the Carriers shall meet and
endeavor to mutually agree on a detailed emergency plan.

TO BE COMPLETED BY APRIL 21, 2003

	 	 	 	 	 	 	 	 	 
	Action:	 	 	 	 	 	 	 	 
	 

	 	3M
	 	Doug Smith
	 	FLLCS3M
	 	321-917-9909
	 

	 	UA
	 	Lois Danvir
	 	HDQCSUA
	 	847-700-5133

- 15 -

 

ATTACHMENT 3

FREQUENT FLYER COOPERATION

During the term of this Agreement, 3M shall participate in the United Mileage Plus Program as
follows:

A Mileage Plus Customer shall receive, for each 3M flight, a credit of 500 miles toward his or her
Mileage Plus Program account. Procedures for providing automated accrual, in a template format
approved by UA, shall be established by 3M and transmissions of such data, from 3M to UA, shall
occur on a weekly basis. 3M shall pay UA $ [*] USD for each Mileage Plus eligible flight coupon.

Both parties agree to work toward eventual revenue neutrality by using commercially reasonable
efforts and by employing the following promotional measures:

	A.	 	3M agrees to collect and provide UA with information on those Mileage Plus Customers
requesting Mileage Plus credit for travel on 3M flights. Upon reaching an Accrual Miles
accumulation of $[*] USD and having verified that an automated computer system for transfer of
accrual miles is in place, UA shall offer one or more defined special award promotions on
selected 3M markets for Mileage Plus Members. These special promotions shall be limited in
time and scope, in accordance with guidelines and terms set forth by Mileage Plus and in a
format that is acceptable to both parties.
	 
	B.	 	At no cost to 3M, UA shall provide and issue to qualifying Mileage Plus Customers special
promotional award certificates in accordance with the applicable rules and procedures
governing the joint UA/3M special promotion.
	 
	C.	 	UA shall pay 3M $ [*] USD for each free travel coupon awarded excluding transportation
taxes. Beginning with calendar year 2003, the net amount owing to either party for the
year-to-date shall be limited at $[*] USD. The amounts due to 3M and due to UA shall be
settled on an annual basis, effective March 15, for the previous 12 month ending December 31.
All coupons lifted during the current calendar year will need to made available to the other
party by February 20.
	 
	D.	 	3M may limit the number of seats available for free travel on specified 3M flights and award
bookings shall be made in “G” inventory availability. The net amounts due shall be calculated
and provided to each party for information but shall not be billed above or beyond the $
[*] USD limit.
	 
	E.	 	UA and 3M agree that redemptions under the existing Mileage Plus Agreement, dated 5/14/1994
will continue to be honored by 3M for awards issued prior to April 21, 2003. No new awards
under that agreement (TDD BPG10/BPG20) will be issued after April 21, 2003. Any awards from
the existing MileagePlus Agreement flown after April 21 shall be booked in G class and be
billed through the clearing house at zero value. 3M, within 60 days of the flown date, shall
bill UA $[*] per award coupon, which UA shall promptly pay via the next clearinghouse
settlement.

- 16 -

 

UA shall not be required to pay 3M for any coupon billed to UA more than 60 days after the flown
date. Settlement of existing award tickets shall be exclusive of the agreed cap for year 2003. 3M
and UA further agree that neither carrier shall be liable for any amount due or owed from award
redemption or mileage accrual from flights operated during 2002 or prior periods. Customers who
were issued coupons by UA for free travel on 3M during the months of January and February, 2003
shall be billed to UA at the rate of $[*] per coupon prior to April 30, 2003. Customers who
traveled under UA award coupons during March, 2003 will be billed to UA no later than May 31, 2003.
UA shall have no liability for any coupons not billed to UA during those time periods.

- 17 -

 

FIRST AMENDMENT

     THIS FIRST AMENDMENT dated August 31, 2007 is entered into by and between UNITED AIR LIES,
INC., (“UA”) and Gulfstream International Airlines, Inc., (“3M”), (United and Gulfstream, each a
“Party” and together, the “Parties”).

RECITALS

     WHEREAS, UA and 3M have previously executed that certain Code Share and Regulatory Cooperation
Agreement effective as of April 21, 2003 (United Contract No. 163314; the “Agreement”); and

     WHEREAS, the Parties have mutually agreed to revise the Agreement in accordance with the terms
and conditions of the First Amendment.

     NOW, THEREFORE, in consideration of the promises and the mutual obligations hereinafter set
forth, the Parties agree as follows:

1.      All capitalized terms not otherwise defined in this First Amendment shall have the meanings
given them in the Agreement.

2.      Section 5 of the Agreement — TERM — is deleted and restated in its entirety to read as
follows:

“This Agreement is effective as of April 21, 2003 and will continue thereafter indefinitely;
provided, however, that this Agreement may be terminated by either party at that party’s election
for convenience and, without cause upon one hundred and eighty (180) days’ prior written notice.”

3.      Section 6, C of the Agreement — COMPLIANCE WITH GOVERNMENT AND SAFETY REQUIREMENTS — is
deleted and restated in its entirety to read as follows:

“Both 3M and UA represent and warrant that each has or will have successfully undergone an IATA
Operational Safety Audit (“IOSA”) at its own expense satisfactory to the other Carrier by no later
than 12 months after the date of this amendment, and further warrant that each shall maintain
compliance with the requirements of such audit within the time frame required by IATA. Any failure
to maintain compliance shall immediately be brought to the other Carrier’s attention along with
corrective actions taken or a corrective action plan. Notwithstanding anything herein to the
contrary, any non-compliance by one Carrier shall be grounds for immediate partial or full
suspension or termination of this Agreement by the other Carrier without further liability to such
Carrier. Notwithstanding anything herein to the contrary, United reserves the right to suspend or
terminate this Agreement, in whole or in part, at ay time without penalty in the event United
determines 3M is non-compliant with IOSA standards or applicable Federal Aviation Regulations.
Additional safety review audits may be required at either Carrier’s discretion and the other
Carrier shall cooperate with all such audits. Code share

 

 

is not permitted on any flight operated by a third-party through a wet-lease or other arrangement
whereby the operator of the flights is anyone other than UA or 3M.”

4.      Except as otherwise expressly modified herein, all other terms and conditions of the Agreement
shall remain in full force and effect and are hereby ratified and confirmed as if set forth herein
verbatim.

     IN WITNESS WHEREOF, UA and 3M have executed this First Amendment as set forth herein.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	UNITED AIR LINES, INC.	 	GULFSTREAM INTERNATIONAL

AIRLINES, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/Michael G. Whitaker
	 	By:
	 	/s/ David Hackett	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Michael G. Whitaker
	 	Name:
	 	David Hackett	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Sr. VP Alliances & Int’l Affairs
	 	Title:
	 	President	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	November 6, 2007
	 	Date:
	 	November 5, 2007	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

2exv10w5

 

Exhibit 10.5

PASSENGER

PRORATE AGREEMENT

AGREEMENT, effective the 1st day of October, 2006 by and between UNITED AIR LINES, INC., a Delaware
corporation with offices at 1200 E. Algonquin Road, Elk Grove Township, Illinois (“United”), and
Gulfstream International Airlines, with offices at 1815 Griffin Road Suite 400, Dania Beach,
Florida 33004 (“Gulfstream”).

	1.	 	Introduction: United and Gulfstream each provide air transportation services to the
public. When passengers traveling on a single itinerary are carried part way by United and
part way by Gulfstream, and both United and Gulfstream participate in the fare paid (hereafter
“Interline Travel”), United and Gulfstream will prorate the transportation charge for such
Interline Travel in accordance with applicable published tariffs and procedures and the terms
and conditions of this Agreement.

	2.	 	Interline Coupons: This Agreement governs only those passenger flight coupons that
are both:

	 	(i)	 	issued on the ticket stock of the validating carrier being either United or
Gulfstream, and
	 
	 	(ii)	 	regular “good for passage” flight coupons billed pursuant to the terms and
conditions of the Revenue Accounting Manual.

Such flight coupons are hereafter referred to as “Interline Coupons.” The fare shown on each
Interline Coupon is hereafter referred to as “Interline Revenue.”

	3.	 	Proration of Interline Revenue: United and Gulfstream will prorate the Interline
Revenue from those routes or segments specified in Attachment A & B. Revenue from Interline
Travel involving other air carriers, routes, or segments not specified on Attachment A & B,
will be prorated in accordance with the provisions of the prorate agreement applicable
thereto, if any, or else with the provisions of the Multilateral Prorate Agreement (“MPA”) and
deducted from the fare collected with the residual prorated in accordance with Attachment A &
B. Tickets issued by either party for travel on another air carrier over a segment specified
in Attachment A & B, and subsequently lifted by the other party hereto, will be prorated in
accordance with this Agreement. All fares are those prevailing on date of ticket issuance.
Applicable Discounts: children, infant and seaman’s unless stated otherwise in the
Attachment(s) to this agreement.

	4.	 	Settlement: Interline Coupons will be collected by United and Gulfstream and
presented for payment through the ACH Clearing House. Accounting settlement and payment of
Interline Revenue will be in accordance with the applicable procedures of the ACH Clearing
House, including adjustments for applicable interline service charges and UATP contractor
discount.

	5.	 	Term: This Agreement applies to Interline Coupons issued on or after October 1,
2006, and on or before September 30, 2007. This Agreement may be terminated by
either party at any time for convenience upon 30 days prior written notice to the other party.
Unless

 

 

	 	 	otherwise specified in Attachment A & B, this Agreement governs Interline Coupons issued
prior to expiration or earlier termination thereof.

	6.	 	Force Majeure/Delay: Neither party will be responsible for delays in performance
caused by acts of God or governmental authority, civil disorder or unrest, strikes or labor
disputes, or any other cause beyond the reasonable control of that party.

	7.	 	Indemnification: Each party (the “Indemnitor”) will indemnify the other party, its
officers, employees, and agents (collectively “Indernnitee(s)”) against and hold each
Indemnitee harmless from all claims, suits, judgments, losses, damages, or costs (including
reasonable attorneys’ fees and expenses) incurred by any Indemnitee as a result of claims by
third parties regarding: (a) injury to or death of any person or damage to or destruction of
any property resulting from the negligence of the Indemnitor or its officers, employees, or
agents in performing under this Agreement, except to the extent caused by the negligence of
any Indemnitee; or (b) the violation by the Indemnitor of any local, state, or federal law,
order, regulation, or rule applicable to this Agreement or to the parties’ performance
hereunder.

8.  Termination:

	 	A.	 	If either party (the “Defaulting Party”) fails to perform any of its duties or
obligations under this Agreement, and that failure continues for ten days after written
notice of such default from the other party, then this Agreement will terminate as of
the expiration date of such notice period, without prejudice to any other rights or
remedies the other party may have.
	 
	 	B.	 	If either party (the “Defaulting Party”) becomes insolvent; if the other party
(the “Insecure Party”) has evidence that the Defaulting Party is not paying its bills
when due without just cause; if a receiver of the Defaulting Party’s assets is
appointed; if the Defaulting Party takes any step leading to its cessation as a going
concern; or if the Defaulting Party either ceases or suspends operations for reasons
other than a strike, then the Insecure Party may immediately terminate this Agreement
on written notice to the Defaulting Party unless the Defaulting Party immediately gives
adequate assurance, satisfactory to the Insecure Party, of the future performance of
this Agreement. If bankruptcy proceedings are commenced with respect to the Defaulting
Party and if this Agreement has not otherwise terminated, then the Insecure Party may
suspend all further performance of this Agreement until the Defaulting Party assumes or
rejects this Agreement pursuant to #365 of the Bankruptcy Code or any similar or
successor provision. Any such suspension of further performance by the Insecure Party
pending the Defaulting Party’s assumption or rejection will not be a breach of this
Agreement and will not affect the Insecure Party’s right to pursue or enforce any of
its rights under this Agreement or otherwise.
	 
	 	C.	 	If any material provision of this Agreement is declared invalid by operation of
law, this Agreement will terminate ten days thereafter unless otherwise agreed in
writing by the parties.

-2-

 

	9.	 	Waiver: No waiver by either party of any default or breach by the other party of any
provision of this Agreement will operate as or be deemed a waiver of any subsequent default or
breach.

	10.	 	Confidential Information: Except in any proceeding to enforce the provisions of this
Agreement, neither Party will disclose to any third party the financial terms of this
Agreement, the terms contained in Attachment A & B, or any other confidential information of
the other party, including orders, forecasts, financial or marketing plans or data, or any
data processing programs or procedures.

	11.	 	Assignment: If either party is merged with or acquired by another entity, the other
party may terminate this Agreement without further notice. This Agreement may not be assigned
or transferred in whole or in part, and any such assignment will be void and of no effect.

	12.	 	Relationship of The Parties: Nothing herein is intended or will be construed to
establish any agency, partnership, or joint venture relationship between the parties.

	13.	 	Notices: Notices under the terms of this Agreement will be in writing and sent by
prepaid certified mail, return receipt requested, or by telegram or telex, to the following
addresses:

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	to United:
	 	United Air Lines, Inc.- WHQNC
	 

	 	 	 	P.O. Box 66100
	 

	 	 	 	Chicago, Illinois 60666
	 

	 	 	 	Sita: HDQNCUA
	 

	 	 	 	Attn: Manager of Interline Revenue
	 

	 	 	 	E-mail: Interline-Rev-Mgmt@united.com
	 
	 	 	 	 
	 

	 	to Gulfstream:
	 	Gulfstream International Airlines — HDQQT3M
	 

	 	 	 	3201 Griffin Road, 4th Floor
	 

	 	 	 	Ft. Lauderdale, Florida 33212
	 

	 	 	 	Attn: President

Notices will be effective on the first business day following receipt thereof. Notices sent
by certified mail will be deemed received on the date of delivery as indicated on the return
receipt; notices, sent by telegram or telex will be deemed received on the date transmitted.

	14.	 	Amendments: This Agreement may be changed, modified, or amended from time to time
only by express written agreement of the parties executed by their authorized representatives.

	15.	 	Entirety of Agreement: This Agreement supersedes all prior oral or written
representations or communications between the parties and, together with its Attachment A & B,
constitutes the entire understanding of the parties, regarding the subject matter of this
Agreement.

-3-

 

	16.	 	Miscellaneous Administration Provisions: Each Party will independently establish
fares and rates for flights offered to the traveling Public under its airline designator code,
in accordance with applicable law.

IN WITNESS WHEREOF, the parties have agreed to and executed this Agreement by their
authorized representatives.

	 	 	 	 	 	 	 
	GULFSTREAM INTERNATIONAL AIRLINES	 	UNITED AIRLINES, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ David F. Hackett
	 	By:
	 	/s/ Dennis Corrigan
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	David F. Hackett
	 	Name:
	 	Dennis Corrigan
	 
	 	 	 	 	 	 
	Title:

	 	President
	 	Title:
	 	Managing Director —
International Revenue Management
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	October 6, 2006
	 	Date:
	 	October 5, 2006
	 

	 	 
	 	 	 	 

-4-

 

Passenger Prorate Agreement

Gulfstream — United

Attachment A

[*]

Attachment B

[*]

-5-

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