Document:

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of September 16, 2019, by and between KINERJAPAY
CORP., a Delaware corporation, with headquarters located at Jl. Multatuli, No.8A, Medan, Indonesia 20151 (the “Company”),
and AUCTUS FUND, LLC, a Delaware limited liability company, with its address at 545 Boylston Street, 2nd Floor, Boston,
MA 02116 (the “Buyer”).

 

WHEREAS:

 

A.
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.
Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement
the 12% convertible note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of US$200,000.00
(together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance
with the terms thereof, the “Note”), convertible into shares of common stock, $0.0001 par value per share, of the
Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

C.
The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set
forth immediately below its name on the signature pages hereto; and

 

NOW
THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.
PURCHASE AND SALE OF NOTE.

 

a.
Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees
to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature
pages hereto.

 

b.
Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be
issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available
funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the
principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto,
and (ii) the Company shall deliver such duly executed Note and Warrant on behalf of the Company, to the Buyer, against delivery
of such Purchase Price.

 

c.
Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 7 and Section
8 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall
be 12:00 noon, Eastern Standard Time on or about September 16, 2019, or such other mutually agreed upon time. The closing of the
transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may
be agreed to by the parties.

 

    	 		 

    	 

    

 

2.
REPRESENTATIONS AND WARRANTIES OF THE BUYER. The Buyer represents and warrants to the Company that:

 

a.
Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon
conversion of or otherwise pursuant to the Note (including, without limitation, such additional shares of Common Stock, if any,
as are issuable (i) on account of interest on the Note (ii) as a result of the events described in Sections 1.3 and 1.4(g) of
the Note or (iii) in payment of the Standard Liquidated Damages Amount (as defined in Section 2(f) below) pursuant to this Agreement,
such shares of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively with
the Note, the “Securities”) for its own account and not with a present view towards the public sale or distribution
thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however,
that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific
term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement
or an exemption under the 1933 Act.

 

b.
Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D (an “Accredited Investor”).

 

c.
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
of the Buyer to acquire the Securities.

 

d.
Information. The Buyer and its advisors, if any, have been, and for so long as the Note remains outstanding will continue
to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to
the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any,
have been, and for so long as the Note remains outstanding will continue to be, afforded the opportunity to ask questions of the
Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will
not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure
to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives
shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section
3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware
of any facts that may constitute a breach of any of the Company’s representations and warranties made herein.

 

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e.
Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.
Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being
registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the
Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to
the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions
of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred
to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”))
of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited
Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the
1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost of
the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions,
which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only
in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined
in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a
bona fide margin account or other lending arrangement. In the event that the Company does not accept the opinion of counsel
provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144
or Regulation S, within three (3) business days of delivery of the opinion to the Company, the Company shall pay to the Buyer
liquidated damages of five percent (5%) of the outstanding amount of the Note per day plus accrued and unpaid interest on the
Note, prorated for partial months, in cash or shares at the option of the Buyer (“Standard Liquidated Damages Amount”).
If the Buyer elects to be pay the Standard Liquidated Damages Amount in shares of Common Stock, such shares shall be issued at
the Conversion Price (as defined in the Note) at the time of payment.

 

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g.
Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the
1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular
date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form
(and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for
sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation
S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such
holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act,
which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities,
including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus
delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with
respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline,
it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

h.
Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed
and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in
accordance with its terms.

 

i.
Residency. The Buyer is a resident of the jurisdiction set forth in the preamble.

 

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3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to the Buyer that:

 

a.
Organization and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly
organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power
and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now
owned, leased, used, operated and conducted. The Company and each of its Subsidiaries is duly qualified as a foreign corporation
to do business and is in good standing in every jurisdiction in which its ownership or use of property or the nature of the business
conducted by it makes such qualification necessary except where the failure to be so qualified or in good standing would not have
a Material Adverse Effect. “Material Adverse Effect” means any material adverse effect on the business, operations,
assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions
contemplated hereby or by the agreements or instruments to be entered into in connection herewith. “Subsidiaries”
means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly,
any equity or other ownership interest.

 

b.
Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this
Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation
by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance
and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized
by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its
shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative,
and such authorized representative is the true and official representative with authority to sign this Agreement and the other
documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution
and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the
Company enforceable against the Company in accordance with its terms.

 

c.
Capitalization. As of the date hereof, the authorized capital stock of the Company consists of: (i) 950,000,000 shares
of Common Stock, of which approximately 76,392,469 shares are outstanding; and (ii) 10,000,000 shares of preferred stock, of which
1,100,000 are issued and outstanding. Except as disclosed in the SEC Documents, no shares are reserved for issuance pursuant to
the Company’s stock option plans, no shares are reserved for issuance pursuant to securities (other than the Note, any other
convertible promissory note issued to the Buyer and to other convertible note holders issued in the ordinary course since the
filing of the Form 10-Q on August 14, 2019) exercisable for, or convertible into or exchangeable for shares of Common Stock and
36,036,036 shares are reserved for issuance upon conversion of the Note. All of such outstanding shares of capital stock are,
or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable. No shares of capital stock of the Company
are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens or encumbrances imposed
through the actions or failure to act of the Company. Except as disclosed in the SEC Documents, as of the effective date of this
Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal,
agreements, understandings, claims or other commitments or rights of any character whatsoever relating to, or securities or rights
convertible into or exchangeable for any shares of capital stock of the Company or any of its Subsidiaries, or arrangements by
which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company
or any of its Subsidiaries, (ii) there are no agreements or arrangements under which the Company or any of its Subsidiaries is
obligated to register the sale of any of its or their securities under the 1933 Act and (iii) there are no anti-dilution or price
adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security holders)
that will be triggered by the issuance of the Note or the Conversion Shares. The Company has filed in its SEC Documents true and
correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate of Incorporation”),
the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible
into or exercisable for Common Stock of the Company and the material rights of the holders thereof in respect thereto, including
but not limited to the outstanding shares of Convertible Preferred Stock and the intention to issue shares of Series F and Series
G Convertible Preferred Stock to the Wahana Group upon receipt of the subscription proceeds as reported in the Company’s
SEC Documents. The Company shall provide the Buyer with a written update of this representation signed by the Company’s
Chief Executive on behalf of the Company as of the Closing Date.

 

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d.
Issuance of Shares. The issuance of the Note is duly authorized and, upon issuance in accordance with the terms of this
Agreement, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens,
charges and other encumbrances with respect to the issue thereof. The Conversion Shares are duly authorized and reserved for issuance
and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable,
and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

e.
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock
upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to
issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

f.
No Conflicts. The execution, delivery and performance of this Agreement and the Note by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation
for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate
of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default
(or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company
or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the
Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset
of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). Neither
the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws or other organizational documents
and neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with notice or lapse of time
or both could put the Company or any of its Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries
has taken any action or failed to take any action that would give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or by which
any property or assets of the Company or any of its Subsidiaries is bound or affected, except for possible defaults as would not,
individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company and its Subsidiaries, if any,
are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any law,
ordinance or regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required under
the 1933 Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization or order
of, or make any filing or registration with, any court, governmental agency, regulatory agency, self-regulatory organization or
stock market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement, the
Note in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with the terms hereof and to issue
the Conversion Shares upon conversion of the Note. All consents, authorizations, orders, filings and registrations which the Company
is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company
is not in violation of the listing requirements of the OTC Pink (the “OTC Pink”), the OTCQB or any similar quotation
system, and does not reasonably anticipate that the Common Stock will be delisted by the OTC Pink, the OTCQB or any similar quotation
system, in the foreseeable future nor are the Company’s securities “chilled” by DTC. The Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

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g.
SEC Documents; Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended
(the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial
statements and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being
hereinafter referred to herein as the “SEC Documents”). The Company has delivered to the Buyer true and complete copies
of the SEC Documents, except for such exhibits and incorporated documents. As of their respective dates, the SEC Documents complied
in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading. None of the statements made in any
such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have
been amended or updated in subsequent filings prior the date hereof). As of their respective dates, the financial statements of
the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance
with United States generally accepted accounting principles, consistently applied, during the periods involved and fairly present
in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates
thereof and the consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments). Except as set forth in the financial statements of the Company included in
the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary
course of business subsequent to June 30, 2019, and (ii) obligations under contracts and commitments incurred in the ordinary
course of business and not required under generally accepted accounting principles to be reflected in such financial statements,
which, individually or in the aggregate, are not material to the financial condition or operating results of the Company. The
Company is subject to the reporting requirements of the 1934 Act. For the avoidance of doubt, filing of the documents required
in this Section 3(g) via the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”) shall
satisfy all delivery requirements of this Section 3(g).

 

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h.
Absence of Certain Changes. Since June 30, 2019, there has been no material adverse change and no material adverse development
in the assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act
reporting status of the Company or any of its Subsidiaries.

 

i.
Absence of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public
board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries,
threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such,
that could have a Material Adverse Effect. Schedule 3(i) contains a complete list and summary description of any pending or, to
the knowledge of the Company, threatened proceeding against or affecting the Company or any of its Subsidiaries, without regard
to whether it would have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing.

 

j.
Patents, Copyrights, etc. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to
use all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications,
service marks, service names, trade names and copyrights (“Intellectual Property”) necessary to enable it to conduct
its business as now operated (and, as presently contemplated to be operated in the future). Except as disclosed in the SEC Documents,
there is no claim or action by any person pertaining to, or proceeding pending, or to the Company’s knowledge threatened,
which challenges the right of the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it
to conduct its business as now operated (and, as presently contemplated to be operated in the future); to the best of the Company’s
knowledge, the Company’s or its Subsidiaries’ current and intended products, services and processes do not infringe
on any Intellectual Property or other rights held by any person; and the Company is unaware of any facts or circumstances which
might give rise to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of their Intellectual Property.

 

k.
No Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate
or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers
has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party
to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse
Effect.

 

l.
Tax Status. The Buyer understands that to date, the Company and each of its Subsidiaries has not generated any profits
and, as a result, neither the Company not any Subsidiary has made or filed federal, state and foreign income and all other tax
returns, reports and declarations required by any jurisdiction to which it is subject nor does the Company or any Subsidiary believe
that it has any tax liabilities owed with respect to federal, state and foreign income and all other taxes. The Company, including
its Subsidiaries believes there are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction,
and the officers of the Company know of no basis for any such claim. The Company has not executed a waiver with respect to the
statute of limitations relating to the assessment or collection of any foreign, federal, state or local tax. The Company is not
presently being audited by any taxing authority.

 

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m.
Certain Transactions. Except as disclosed in the SEC Documents and for arm’s length transactions pursuant to which
the Company or any of its Subsidiaries makes payments in the ordinary course of business upon terms no less favorable than the
Company or any of its Subsidiaries could obtain from third parties and other than the grant of stock options disclosed on Schedule
3(c), none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or
any of its Subsidiaries (other than for services as employees, officers, directors and consultants providing bona fide services),
including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental
of real or personal property to or from, or otherwise requiring payments to or from any officer, director, employee or consultant
or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any
such employee or consultant has a substantial interest or is an officer, director, trustee or partner.

 

n.
Disclosure. All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement
and provided to the Buyer pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby
is true and correct in all material respects and the Company has not omitted to state any material fact necessary in order to
make the statements made herein or therein, in light of the circumstances under which they were made, not misleading. No event
or circumstance has occurred or exists with respect to the Company or any of its Subsidiaries or its or their business, properties,
prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly announced or disclosed (assuming for this purpose that the Company’s
reports filed under the 1934 Act are being incorporated into an effective registration statement filed by the Company under the
1933 Act).

 

o.
Acknowledgment Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting
solely in the capacity of arm’s length Buyers with respect to this Agreement and the transactions contemplated hereby. The
Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of
its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice
or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to
the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of
the Company and its representatives.

 

p.
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities
to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

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q.
No Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions,
transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

r.
Permits; Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and
operate its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”),
and there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of
the Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of
the Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect. Since June 30, 2019, neither the Company nor any of its Subsidiaries
has received any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices
relating to possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse
Effect.

 

s.
Environmental Matters.

 

(i)
There are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the
Company, no past or present violations of Environmental Laws (as defined below), releases of any material into the environment,
actions, activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common
law environmental liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of
1980 or similar federal, state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice
with respect to any of the foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection
with any of the foregoing. The term “Environmental Laws” means all federal, state, local or foreign laws relating
to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(ii)
Other than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained
on or about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials
were released on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries during
the period the property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course of the
Company’s or any of its Subsidiaries’ business.

 

    	 	10	 

    	 

    

 

(iii)
There are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries
that are not in compliance with applicable law.

 

t.
Title to Property. Except as disclosed in the SEC Documents the Company and its Subsidiaries have good and marketable title
to all real property and good and marketable title to all personal property owned by them which is material to the business of
the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects or such as would not have
a Material Adverse Effect. Any real property and facilities held under lease by the Company and its Subsidiaries are held by them
under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

 

u.
Internal Accounting Controls. Except as disclosed in the SEC Documents the Company and each of its Subsidiaries maintain
a system of internal accounting controls sufficient, in the judgment of the Company’s board of directors, to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or
specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences.

 

v.
Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee
or other person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the
Company, used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political
activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate
funds; violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any
bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or
employee.

 

w.
Solvency. The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e.,
its assets have a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as
they become absolute and matured) and currently the Company has no information that would lead it to reasonably conclude that
the Company would not, after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it
intend to take any action that would impair its ability to, pay its debts from time to time incurred in connection therewith as
such debts mature. The Company did not receive a qualified opinion from its auditors with respect to its most recent fiscal year
end and, after giving effect to the transactions contemplated by this Agreement, does not anticipate or know of any basis upon
which its auditors might issue a qualified opinion in respect of its current fiscal year. For the avoidance of doubt any disclosure
of the Borrower’s ability to continue as a “going concern” shall not, by itself, be a violation of this Section
3(w).

 

x.
No Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement
will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
Company”). The Company is not controlled by an Investment Company.

 

    	 	11	 

    	 

    

 

y.
Insurance. The Company is in the process of securing for itself and each of its Subsidiaries insurance policies issued
by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company
believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company
nor any such Subsidiary has any reason to believe that it will not be able to secure and thereafter renew any insurance coverage
as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business
at a cost that would not have a Material Adverse Effect. Upon written request the Company will provide to the Buyer true and correct
copies of all policies relating to directors’ and officers’ liability coverage, errors and omissions coverage, and
commercial general liability coverage, when such policies are obtained.

 

z.
Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended
on the basis of being a “bad actor” as that term is established in the September 19, 2013 Small Entity Compliance
Guide published by the SEC.

 

aa.
Shell Status. The Company represents that it is not a “shell” issuer and has never been a “shell”
issuer, or that if it previously has been a “shell” issuer, that at least twelve (12) months have passed since the
Company has reported Form 10 type information indicating that it is no longer a “shell” issuer. Further, the Company
will instruct its counsel to either (i) write a 144- 3(a)(9) opinion to allow for salability of the Conversion Shares or (ii)
accept such opinion from Holder’s counsel.

 

bb.
No-Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company or any
of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in
its 1934 Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

 

cc.
Manipulation of Price. The Company has not, and to its knowledge no one acting on its behalf has: (i) taken, directly or
indirectly, any action designed to cause or to result, or that could reasonably be expected to cause or result, in the stabilization
or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold,
bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay
to any person any compensation for soliciting another to purchase any other securities of the Company.

 

dd.
Sarbanes-Oxley Act. The Company and each Subsidiary is in material compliance with all applicable requirements of the Sarbanes-Oxley
Act of 2002 that are effective as of the date hereof, and all applicable rules and regulations promulgated by the SEC thereunder
that are effective as of the date hereof.

 

    	 	12	 

    	 

    

 

ee.
Employee Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or
employs any member of a union. The Company believes that its and its Subsidiaries’ relations with their respective employees
are good. No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company
or any of its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any
such Subsidiary or otherwise terminate such officer’s employment with the Company or any such Subsidiary. To the knowledge
of the Company, no executive officer or other key employee of the Company or any of its Subsidiaries is, or is now expected to
be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement,
non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each
such executive officer or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries to any
liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state,
local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions
of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

 

ff.
Breach of Representations and Warranties by the Company. The Company agrees that if the Company breaches any of the representations
or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement
and it being considered an Event of Default under Section 3.5 of the Note, the Company shall pay to the Buyer the Standard Liquidated
Damages Amount in cash or in shares of Common Stock at the option of the Company, until such breach is cured. If the Company elects
to pay the Standard Liquidated Damages Amounts in shares of Common Stock, such shares shall be issued at the Conversion Price
at the time of payment.

 

4.
COVENANTS.

 

a.
Best Efforts. The parties shall use their commercially reasonable best efforts to satisfy timely each of the conditions
described in Section 7 and 8 of this Agreement.

 

b.
Form D. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to provide
a copy thereof to the Buyer promptly after such filing.

 

c.
Use of Proceeds. The Company shall use the proceeds from the sale of the Note for working capital and other general corporate
purposes.

 

d.
Expenses. The Company shall reimburse Buyer for any and all expenses incurred by them in connection with the negotiation,
preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith
(“Documents”), including, without limitation, reasonable attorneys’ and consultants’ fees and expenses,
transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any
consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of
restructuring the transactions contemplated by the Documents. When possible, the Company must pay these fees directly, including,
but not limited to, any and all wire fees, otherwise the Company must make immediate payment for reimbursement to the Buyer for
all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer. At Closing, the
Company’s initial obligation with respect to this transaction is to reimburse Buyer’s legal expenses shall be $2,750.00
plus the cost of wire fees.

 

    	 	13	 

    	 

    

 

e.
Financial Information. The Company agrees to send or make available the following reports to the Buyer until the Buyer
transfers, assigns, or sells all of the Securities: (i) within ten (10) days after the filing with the SEC, a copy of its Annual
Report on Form 10-K its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1) day after release,
copies of all press releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously with the making available
or giving to the shareholders of the Company, copies of any notices or other information the Company makes available or gives
to such shareholders. For the avoidance of doubt, filing the documents required in (i) above via EDGAR or releasing any documents
set forth in (ii) above via a recognized wire service shall satisfy the delivery requirements of this Section 4(f).

 

f.
Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange
or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance)
and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so
listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain
and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTC Pink, OTCQB
or any equivalent replacement exchange, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq
SmallCap”), the New York Stock Exchange (“NYSE”), or the NYSE American and will comply in all respects with
the Company’s reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority
(“FINRA”) and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any material
notices it receives from the OTC Pink, OTCQB and any other exchanges or quotation systems on which the Common Stock is then listed
regarding the continued eligibility of the Common Stock for listing on such exchanges and quotation systems. The Company shall
pay any and all fees and expenses in connection with satisfying its obligation under this Section 4(g).

 

g.
Corporate Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTC Pink, OTCQB, Nasdaq, NasdaqSmallCap,
NYSE or AMEX.

 

h.
No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of
the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

i.
Failure to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note, the Company shall comply with the
reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the 1934
Act.

 

    	 	14	 

    	 

    

 

j.
Most Favored Nation Provision. From the date hereof and for so long as a Buyer holds any Securities, in the event that
the Company issues or sells any Common Stock or Common Stock Equivalents, if the Buyer then holding outstanding Securities, reasonably
believes that any of the terms and conditions appurtenant to such issuance or sale are more favorable to such investors than are
the terms and conditions granted to the Buyer hereunder, upon notice to the Company by the Buyer within five (5) Trading Days
after disclosure of such issuance or sale, the Company shall amend the terms of this transaction as to the Buyer only so as to
give the Buyer the benefit of such more favorable terms or conditions. This Section 4.j. shall not apply to an issuance of Common
Stock or Common Stock Equivalents underlying any shares of outstanding Preferred Stock or Series F and Series G Preferred Stock
or other series of Preferred Stock to be issued upon receipt of subscription proceeds as disclosed in the SEC Documents or will
be timely disclosed on Form 8-K within four (4) days of the issuance of any newly authorized issuance and sale of other series
of Preferred Stock. The Company shall provide the Buyer with notice of any such issuance or sale not later than ten (10) Trading
Days before such issuance or sale.

 

k.
Restriction on Activities. Commencing as of the date first above written, and until the sooner of the six month anniversary
of the date first written above or payment of the Note in full, or full conversion of the Note, the Company shall not, directly
or indirectly, without the Buyer’s prior written consent, which consent shall not be unreasonably withheld: (a) change the
nature of its business; (b) sell, divest, acquire, change the structure of any material assets other than in the ordinary course
of business; or (c) solicit any offers for, respond to any unsolicited offers for, or conduct any negotiations with any other
person or entity in respect of any variable rate debt transactions (i.e., transactions were the conversion or exercise price of
the security issued by the Company varies based on the market price of the Common Stock) above $500,000, whether a transaction
similar to the one contemplated hereby or any other investment; or (d) file any registration statements with the SEC.

 

l.
Legal Counsel Opinions. Upon the request of the Buyer from to time to time, the Company shall be responsible (at its cost)
for promptly supplying to the Company’s transfer agent and the Buyer a customary legal opinion letter of its counsel (the
“Legal Counsel Opinion”) to the effect that the sale of Conversion Shares by the Buyer or its affiliates, successors
and assigns is exempt from the registration requirements of the 1933 Act pursuant to Rule 144 (provided the requirements of Rule
144 are satisfied and provided the Conversion Shares are not then registered under the 1933 Act for resale pursuant to an effective
registration statement). Should the Company’s legal counsel fail for any reason to issue the Legal Counsel Opinion, the
Buyer may (at the Company’s cost) secure another legal counsel to issue the Legal Counsel Opinion, and the Company will
instruct its transfer agent to accept such opinion.

 

m.
Par Value. If the closing bid price at any time the Note is outstanding falls below $0.0001, the Company shall cause the par value
of its Common Stock to be reduced to $0.00001 or less.

 

n.
Breach of Covenants. The Company agrees that if the Company breaches any of the covenants set forth in this Section 4,
and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of Default
under Section 3.4 of the Note, the Company shall pay to the Buyer the Standard Liquidated Damages Amount in cash or in shares
of Common Stock at the option of the Buyer, until such breach is cured, or with respect to Section 4(d) above, the Company shall
pay to the Buyer the Standard Liquidated Damages Amount in cash or shares of Common Stock, at the option of the Buyer, upon each
violation of such provision. If the Company elects to pay the Standard Liquidated Damages Amounts in shares of Common Stock, such
shares shall be issued at the Conversion Price at the time of payment.

 

    	 	15	 

    	 

    

 

5.
Transaction Expense Amount. Upon Closing, the Company shall pay Twenty Thousand and 00/100 United States Dollars (US$20,000.00)
to Auctus Fund Management, LLC (“Auctus Management”) to cover the Holder’s due diligence, monitoring, and other
transaction costs incurred for services rendered in connection herewith (the “Transaction Expense Amount”). The Transaction
Expense Amount shall be offset against the proceeds of the Note and shall be paid to Auctus Management upon the execution hereof.

 

6.
Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent to issue certificates,
registered in the name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time by
the Buyer to the Company upon conversion of the Note in accordance with the terms thereof (the “Irrevocable Transfer Agent
Instructions”). In the event that the Borrower proposes to replace its transfer agent, the Borrower shall provide, prior
to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered
pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in
the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower. Prior to registration of the Conversion
Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 without any restriction
as to the number of Securities as of a particular date that can then be immediately sold, all such certificates shall bear the
restrictive legend specified in Section 2(g) of this Agreement. The Company warrants that: (i) no instruction other than the Irrevocable
Transfer Agent Instructions referred to in this Section, and stop transfer instructions to give effect to Section 2(f) hereof
(in the case of the Conversion Shares, prior to registration of the Conversion Shares under the 1933 Act or the date on which
the Conversion Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular
date that can then be immediately sold), will be given by the Company to its transfer agent and that the Securities shall otherwise
be freely transferable on the books and records of the Company as and to the extent provided in this Agreement and the Note; (ii)
it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically
or in certificated form) any certificate for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant
to the Note as and when required by the Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer
agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw
any stop transfer instructions in respect thereof) on any certificate for any Conversion Shares issued to the Buyer upon conversion
of or otherwise pursuant to the Note as and when required by the Note and this Agreement. Nothing in this Section shall affect
in any way the Buyer’s obligations and agreement set forth in Section 2(g) hereof to comply with all applicable prospectus
delivery requirements, if any, upon re-sale of the Securities. If the Buyer provides the Company, at the cost of the Company,
with (i) an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that
a public sale or transfer of such Securities may be made without registration under the 1933 Act and such sale or transfer is
effected or (ii) the Buyer provides reasonable assurances that the Securities can be sold pursuant to Rule 144, the Company shall
permit the transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more certificates,
free from restrictive legend, in such name and in such denominations as specified by the Buyer. The Company acknowledges that
a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the
transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations
under this Section may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions
of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any
breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security
being required.

 

    	 	16	 

    	 

    

 

7.
CONDITIONS PRECEDENT TO THE COMPANY’S OBLIGATIONS TO SELL. The obligation of the Company hereunder to issue and sell
the Note to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions
thereto, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time
in its sole discretion:

 

a.
The Buyer shall have executed this Agreement and delivered the same to the Company.

 

b.
The Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c.
The representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date),
and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

 

d.
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

8.
CONDITIONS PRECEDENT TO THE BUYER’S OBLIGATION TO PURCHASE. The obligation of the Buyer hereunder to purchase the
Note at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided
that these conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

a.
The Company shall have executed this Agreement and delivered the same to the Buyer.

 

b.
The Company shall have delivered to the Buyer the duly executed Note (in such denominations as the Buyer shall request) and in
accordance with Section 1(b) above.

 

c.
The Irrevocable Transfer Agent Instructions, in form and substance satisfactory to a majority-in-interest of the Buyer, shall
have been delivered to and acknowledged in writing by the Company’s Transfer Agent.

 

d.
The representations and warranties of the Company shall be true and correct in all material respects as of the date when made
and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific
date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.
The Buyer shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as
of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including,
but not limited to certificates with respect to the Company’s Certificate of Incorporation, By-laws and Board of Directors’
resolutions relating to the transactions contemplated hereby.

 

    	 	17	 

    	 

    

 

e.
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

f.
No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but
not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934
Act reporting obligations.

 

g.
The Conversion Shares shall have been authorized for quotation on the OTC Pink, OTCQB or any similar quotation system and trading
in the Common Stock on the OTC Pink, OTCQB or any similar quotation system shall not have been suspended by the SEC or the OTC
Pink, OTCQB or any similar quotation system.

 

h.
The Buyer shall have received an officer’s certificate described in Section 3(c) above, dated as of the Closing Date.

 

9.
GOVERNING LAW; MISCELLANEOUS.

 

a.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement, the Note or any other agreement, certificate, instrument or document contemplated hereby shall be brought only
in the state courts located in the Commonwealth of Massachusetts or in the federal courts located in the Commonwealth of Massachusetts.
The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder
and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. EACH PARTY
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION
DOCUMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. The prevailing party shall be entitled to recover from the other
party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement
delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute
or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability
of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process
being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing
a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other
manner permitted by law.

 

    	 	18	 

    	 

    

 

b.
Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

 

c.
Construction; Headings. This Agreement shall be deemed to be jointly drafted by the Company and the Buyer and shall not
be construed against any person as the drafter hereof. The headings of this Agreement are for convenience of reference only and
shall not form part of, or affect the interpretation of, this Agreement.

 

d.
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any
law shall not affect the validity or enforceability of any other provision hereof.

 

e.
Entire Agreement; Amendments. This Agreement, the Note and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest
of the Buyer.

 

f.
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, email, or facsimile, addressed as set forth below or to such other address as
such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed effective (a) upon hand delivery or delivery by email or facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

 

    	 	19	 

    	 

    

 

If
to the Company, to:

 

KinerjaPay
Corp.

Jl.
Multatuli, No.8A

Medan,
Indonesia 20151

Attn:
Edwin Ng

E-mail:
edwinng@kinerjapay.co

 

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

 

Lawrence
R. Lonergan, Esq.

The
Lonergan Law Firm, LLC

96
Park Street

Montclair,
NJ 07042

E-Mail:
llonergan@wlesq.com

 

If
to the Buyer:

 

Auctus
Fund, LLC

545
Boylston Street, 2nd Floor

Boston,
MA 02116

Attn:
Lou Posner

Facsimile:
(617) 532-6420

 

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

 

Chad
Friend, Esq., LL.M.

Anthony
L.G., PLLC

625
N. Flagler Drive, Suite 600

West
Palm Beach, FL 33401

E-mail:
CFriend@AnthonyPLLC.com

 

Each
party shall provide notice to the other party of any change in address.

 

g.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other. Notwithstanding the foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder
to any person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as
that term is defined under the 1934 Act, without the consent of the Company.

 

h.
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

    	 	20	 

    	 

    

 

i.
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder not withstanding any due diligence investigation conducted by or on behalf of the Buyer. The
Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and
covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses
as they are incurred.

 

j.
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

k.
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

l.
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the
remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or
threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity
of showing economic loss and without any bond or other security being required.

 

m.
Publicity. The Company, and the Buyer shall have the right to review a reasonable period of time before issuance of any
press releases, SEC, OTCQB or FINRA filings, or any other public statements with respect to the transactions contemplated hereby;
provided, however, that the Company shall be entitled, without the prior approval of the Buyer, to make any press
release or SEC, OTCQB (or other applicable trading market) or FINRA filings with respect to such transactions as is required by
applicable law and regulations (although the Buyer shall be consulted by the Company in connection with any such press release
prior to its release and shall be provided with a copy thereof and be given an opportunity to comment thereon).

 

n.
Indemnification. In consideration of the Buyer’s execution and delivery of this Agreement and acquiring the Securities
hereunder, and in addition to all of the Company’s other obligations under this Agreement or the Note, the Company shall
defend, protect, indemnify and hold harmless the Buyer and its stockholders, partners, members, officers, directors, employees
and direct or indirect investors and any of the foregoing persons’ agents or other representatives (including, without limitation,
those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages,
and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”),
incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
or warranty made by the Company in this Agreement or the Note or any other agreement, certificate, instrument or document contemplated
hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in this Agreement or the Note
or any other agreement, certificate, instrument or document contemplated hereby or thereby or (c) any cause of action, suit or
claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf
of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of this Agreement
or the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby, (ii) any transaction financed
or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, or (iii) the
status of the Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by this
Agreement. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall
make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible under
applicable law

 

[signature
page follows]

 

    	 	21	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above
written.

 

KINERJAPAY
CORP.

 

	By:		 
	Name:	Edwin
    Ng	 
	Title:	Chief
    Executive Officer	 

 

AUCTUS
FUND, LLC

 

	By:		 
	Name:	Lou
    Posner	 
	Title:	Managing
    Director	 

 

AGGREGATE
SUBSCRIPTION AMOUNT:

 

	Aggregate
    Principal Amount of Note:	US$200,000.00
	 	 
	Aggregate
    Purchase Price:	US$200,000.00

 

    	 	22Exhibit

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.
ENGINE SALE AND PURCHASE AGREEMENT

Dated as of November 8, 2019

between
CONTRAIL AVIATION SUPPORT, LLC 
 as Seller
and
CROSS OCEAN AVIATION FUND 1 (Intl) 5 DAC 
as Buyer

for

One V2524-A5 and One V2527-A5 engines
Engine Serial Numbers V11255 and V10543 

TABLE OF CONTENTS 

 Page

	
					
	Section 1.
	

	Definitions and Construction
	1
	

	 
	 
	 

	1.1
	

	Defined Terms
	1
	

	1.2
	

	Construction
	3
	

	 
	 
	 

	Section 2.
	

	Sale of Engines
	3
	

	 
	 
	 

	2.1
	

	Delivery
	3
	

	2.2
	

	Deposit; Purchase Price
	3
	

	2.3
	

	Place of Delivery and Delivery
	4
	

	2.4
	

	Title and Risk of Loss
	4
	

	2.5
	

	Delivery Condition
	4
	

	2.6
	

	Inspection
	4
	

	 
	 
	 

	Section 3.
	

	Delivery Conditions
	4
	

	 
	 
	 

	3.1
	

	Conditions to Buyer’s Obligations
	4
	

	3.2
	

	Conditions to Seller’s Obligations
	5
	

	 
	 
	 

	Section 4.
	

	Taxes and Indemnities
	5
	

	 
	 
	 

	4.1
	

	Sales Taxes
	5
	

	4.2
	

	Buyer Indemnity
	6
	

	4.3
	

	Seller Indemnity
	6
	

	4.4
	

	Insurance
	7
	

	4.5
	

	Survival
	7
	

	 
	 
	 

	Section 5.
	

	Excusable Delay
	7
	

	 
	 
	 

	Section 6.
	

	Representations and Warranties
	7
	

	 
	 
	 

	6.1
	

	Representations and Warranties of Seller
	7
	

	6.2
	

	Representations and Warranties of Buyer
	8
	

	6.3
	

	Limitation of Warranties and Agreements
	9
	

	 
	 
	 

	Section 7.
	

	Miscellaneous
	9
	

	 
	 
	 

	7.1
	

	Notices
	9
	

	7.2
	

	Assignment
	10
	

	7.3
	

	Headings
	10
	

	7.4
	

	Brokers’ Commissions
	10
	

	7.5
	

	Survival of Representations, Warranties, Covenants and Indemnities
	11
	

	7.6
	

	Governing Law; Jurisdiction
	11
	

	7.7
	

	Entire Agreement
	11
	

	7.8
	

	Waivers
	11
	

	7.9
	

	Unenforceability
	11
	

	7.10
	

	Counterparts
	11
	

i

TABLE OF CONTENTS 

 Page

	
					
	7.11
	

	Expenses
	12
	

	7.12
	

	Confidentiality
	12
	

	7.13
	

	No Third Party Beneficiaries
	12
	

	7.14
	

	Limitation of Damages
	12
	

	7.15
	

	Cape Town Convention
	12
	

	7.16
	

	Know your Customer
	12
	

	
		
	Schedules and Exhibits
	 

	Schedule 1
Schedule 2

	Delivery Condition
QEC Listing

	Exhibit A 
Exhibit B
Exhibit C
Exhibit D

	Warranty Bill of Sale 
Technical Acceptance Certificate
Insurances
Delivery Certificate

i

ENGINE SALE AND PURCHASE AGREEMENT
THIS ENGINE SALE AND PURCHASE AGREEMENT (“Agreement”) is entered into as of November 8, 2019 between CONTRAIL AVIATION SUPPORT, LLC, a North Carolina limited liability company (“Seller”) and CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC, a designated activity company operating under the laws of Ireland (“Buyer”).

WHEREAS, Seller is the owner of one V2524-A5 model engine bearing manufacturer’s serial number V11255, and one V2527-A5 model engine bearing manufacturer’s serial number and V10543, including, as to each engine, the QEC and all other Parts installed thereon, attached thereto or in Seller’s possession and any loose equipment specific thereto, the related Engine Records and Engine Stands (collectively, as more particularly described on Schedule 1, the “Engines” and each an “Engine”), provided that, for the avoidance of doubt, the term “Engine” specifically excludes the nose cowl, common nozzle assembly (“CNA”) and thrust reverser associated with the Engine; and
WHEREAS, subject to the terms and conditions of this Agreement, Seller and Buyer have agreed that Seller shall sell to Buyer, and Buyer shall purchase from Seller, the Engines.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, Buyer and Seller hereby agree as follows:
Section 1.Definitions and Construction.
1.1    Defined Terms.  The following terms, when capitalized as below, shall have the following meanings when used in this Agreement:
 “Business Day” means a day, other than a Saturday or a Sunday, on which banks are open for business in New York, New York, U.S.A. and Dublin, Ireland.
“Buyer Indemnitee” means Buyer and its affiliates and its and their respective members, managers, officers, directors, employees, agents, representatives, successors and assigns.
“Cape Town Treaty” means, collectively, the official English language text of the Convention of International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment each adopted on November 16, 2001 at a diplomatic conference in Cape Town, South Africa.
“Claims” shall have the meaning given to such term in Section 4.2.
“Delivery” means, on each Delivery Date, the concurrent occurrence of the events enumerated in Section 2.1.
“Delivery Certificate” means a delivery certificate in the form of Exhibit D.
“Delivery Condition” means the condition of the Engines specified in Schedule 1 attached hereto.
 “Delivery Date” means the date on which the Engines are Delivered which is scheduled for November 15, 2019, but in no event later than the Final Delivery Date, unless otherwise agreed by the parties in writing.

	
			
	 
	 
	 

“Delivery Location” shall have the meaning given to such term in Section 2.3.
“Deposit” means $[       ] allocated equally between the Engines.
“Dollars” and the sign “$” means the lawful currency of the United States of America.
“Engine” and “Engines” have the meaning set forth in the recitals to this Agreement.  
“Engine Records” means all technical, historical and maintenance records in the possession of Seller related to the Engines.
“Engine Stands” means those two (2) V2500- A5 engine stands bearing designation number D71TR00005G01, serial number MCC190345-4-2 and designation number D71TR00005G01, serial number MCC190345-4-1.
 “Final Delivery Date” means November 30, 2019.
“Government Entity” means any (a) nation, state, county, city, town, village, district, or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign, or other government; (c) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal); (d) multinational organization or body; or (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, regulatory, or taxing authority or power of any nature.
“Inspection” shall have the meaning given to such term in Section 2.6.
“Inspection Facility” means Aircraft Inspection & Management, LLC, 2481 W. Poppy Avenue, Tucson, Arizona 85705.
 “Lien” means liens, security interests, mortgages, encumbrances, rights of first offer, rights of first refusal claim or any other agreement or arrangement having the effect of conferring security.
 “Part” means any part, component, appliance, system, module, engine module, accessory, material, instrument, furnishing or other item of equipment or property, and as delivered uninstalled on such date.
“Purchase Price” means $[          ] in the aggregate.
“QEC” means quick engine change equipment in the configuration set forth in Schedule 2.
“Material Damage” shall mean damage occurring after the date of the Technical Acceptance Certificate that costs in excess of $[      ] to repair.
“Sales Taxes” shall have the meaning given to such term in Section 4.1.
“Seller Indemnitee(s)” means Seller and its affiliates and its and their respective members, managers, officers, directors, employees, agents, representatives, successors and assigns.
“Technical Acceptance Certificate” means a technical acceptance certificate in the form of Exhibit B.

	
			
	 
	2
	 

“Warranty Bill of Sale” means a bill of sale in the form of Exhibit A.
1.2    Construction.  Any agreement referred to in this Section 1 means such agreement as from time to time modified, supplemented and amended in accordance with its terms.  References to sections, exhibits and the like refer to those in or attached to this Agreement unless otherwise specified.  “Including” means “including but not limited to” and “herein”, “hereof”, hereunder”, etc. mean in, of, or under, etc. this Agreement (and not merely in, of, under, etc. the section or provision where that reference appears).
Section 2.    Sale of Engines.  Subject to the provisions of this Agreement, Seller agrees to sell the Engines to the Buyer and Buyer agrees to purchase the Engines from the Seller for the Purchase Price on or prior to the Final Delivery Date, in the Delivery Condition.
2.1    Delivery.  On the Delivery Date, the concurrent occurrence of each of the following events shall constitute Delivery of the Engines:
(a)    Seller shall deliver, or cause to be delivered, the Engines to the Delivery Location; and
(b)    Seller shall sell and transfer to Buyer title to the Engines pursuant to the execution and delivery by Seller of a Warranty Bill of Sale for the Engines, provided Seller has received the Purchase Price and Delivery Certificate.
2.2    Deposit; Purchase Price.  Buyer has paid the Deposit to Seller.  Seller shall hold the Deposit in escrow until the Delivery Date.  On or prior to the Delivery Date, Buyer shall pay to Seller the Purchase Price for the Engines, less the Deposit,  in immediately available funds by wire transfer to:
Old National Bank 
1 Main Street 
Evansville, IN 47708 
ABA#: [         ] 
Account#: [         ] 
SWIFT Code: [        ] 
Beneficiary: Contrail Aviation Support, LLC 
435 Investment Court 
Verona, WI 53593

or to such other account as Seller may specify in writing on or prior to the date upon which such amount is due and payable. All payments to Seller under this Section 2.2 shall be made in U.S. Dollars in immediately available funds without any set off or deductions, free and clear of any withholdings (tax or otherwise).

	
			
	 
	3
	 

2.3    Place of Delivery and Delivery.  Delivery of the Engines shall occur on the Delivery Date at the Inspection Facility, or another location mutually agreed to by Buyer and Seller (the “Delivery Location”).
2.4    Title and Risk of Loss.  Upon the execution and delivery of the Warranty Bill of Sale, title and risk of loss with respect to the Engines shall pass to Buyer.
2.5    Delivery Condition.  On the Delivery Date the Engines shall be in the Delivery Condition.
2.6    Inspection.  Buyer shall complete (i) an inspection of the Engine Records and (ii) a physical inspection of the Engines (collectively, the “Inspection”).  The Inspection of the Engine Records will include, but not be limited to, as available, the full back to birth trace of all life limited parts and airworthiness directive and mandatory service bulletin compliance documents in the possession of Seller. The physical Inspection of the Engines shall include, but not be limited to, (i) Buyer’s performance of a full video hot and cold section borescope inspection of each Engine, including 360 degree inspection of the NGVs and (ii) Buyer’s examination of the Engines to confirm that the Engines have no external defects or missing components. Within three (3) Business Days of Buyer’s completion of the Inspection, Buyer shall notify Seller in writing as to whether it technically accepts the Engines.  If Buyer notifies Seller in writing that it technically accepts the Engines in a form of a Technical Acceptance Certificate, Buyer and Seller shall use their reasonable efforts to close the Sale of the Engines on or before the Delivery Date.  If Buyer notifies the Seller in writing that it rejects the Engines, or if Buyer fails to notify Seller in writing that it technically accepts the Engines within three (3) Business Days of Buyer’s completion of the Inspection, the Engines shall be deemed rejected and neither party shall have any further liability related to this transaction except that the Seller shall return the Deposit to Buyer within three (3) Business Days thereafter.  The cost of the Inspection shall be for Buyer’s account.                                                                                                                                  

Section 3.    Delivery Conditions.
3.1    Conditions to Buyer’s Obligations.  Buyer’s obligation to buy the Engines shall be subject to the satisfaction of, or waiver by Buyer of, the following conditions:
(a)    execution of an Agreement satisfactory to both Buyer and Seller no later than November 6, 2019;
(b)    Seller shall have tendered delivery of the Engines to Buyer at the Delivery Location in Delivery Condition and with no Material Damage to the Engines from the completion of the Inspection to the Delivery Date;
(c)    receipt by Buyer in escrow of a copy of the fully executed undated Warranty Bill of Sale; 
(d)    Buyer shall have issued a Technical Acceptance Certificate for the Engines; 
(e)    completion of satisfactory “Know Your Customer” due diligence in respect of Seller;
(f)    Seller shall have provided to Buyer all available bills of sale for each of the Engines;
(g)    confirmation by Buyer of evidence that the Engines are free and clear of all Liens;

	
			
	 
	4
	 

(h)    confirmation by Buyer that all installed components are preserved per industry standard procedures consistent with the manufacturer’s AMM guidelines and wrapped per industry standards;
(i)    receipt confirmation by Buyer that Seller has paid all costs and expenses related to the storage and maintenance of the Engines up to and including the Delivery Date; 
(j)    Seller will provide a written undertaking in favor of Buyer, in a form acceptable to Buyer, to cause the removal of any registrations and Liens filed or recorded in Macau in respect of the Engines within a reasonable time after the Delivery Date; and 
(k)    each of the representations and warranties of the Seller contained herein shall be true and correct in all material respects as of the Delivery Date (except to the extent that such representations and warranties relate solely to an earlier date, in which case they shall be true in all material respects as of such earlier date).
3.2    Conditions to Seller’s Obligations.  Seller’s obligation to sell the Engines shall be subject to the satisfaction or waiver by Seller of the following conditions:
(a)    execution of an Agreement satisfactory to both Buyer and Seller no later than November 6, 2019;
(b)    receipt by Seller of the Purchase Price and Acceptance Certificate; 
(c)    receipt by Seller of certificates reasonably satisfactory to Seller from Buyer’s insurance broker (or any lessee’s insurance broker) evidencing Buyer’s compliance with the insurance provisions of Section 4.4 hereof; 
(d)    satisfactory “Know Your Customer” due diligence in respect of Buyer; 
(e)    the sale of both Engines to the Buyer on the same Delivery Date unless otherwise agreed by the parties; and
(f)    each of the representations and warranties of the Buyer contained herein shall be true and correct in all material respects as of Delivery (except to the extent that such representations and warranties relate solely to an earlier date, in which case they shall be true in all material respects as of such earlier date). 
Section 4.    Taxes and Indemnities.
4.1    Sales Taxes.  Buyer and Seller shall cooperate with each other in all reasonable respects to lawfully mitigate or eliminate the imposition of any sales, use, excise, stamp, transfer, value added, gross receipts or any other taxes, duties, fees or charges (collectively, “Sales Taxes”) that may be imposed on Seller, Buyer or the Engines by any Government Entity in any jurisdiction as a result of the sale or purchase of the Engines under this Agreement.  The Purchase Price does not include the amount of any Sales Taxes that may be imposed by any Government Entity in any jurisdiction as a result of the sale of the Engines under this Agreement.  Buyer shall be solely responsible for and promptly pay when due, and will on demand indemnify and hold harmless each Seller Indemnitee on a full indemnity, after-tax basis from and against, all Sales Taxes, and all penalties, fines, additions to tax and interest thereon, which may be levied by any Government Entity as a result of or in connection with the sale of the Engines with regard to any time period at or following Delivery, excluding such taxes based upon Seller Indemnitees’ annual income or any Sales Taxes imposed by any jurisdiction prior to Delivery.
4.2    Buyer Indemnity.  Buyer agrees to indemnify, defend, save and hold harmless each Seller Indemnitee, in full and on demand from and against any and all losses, liabilities, actions, proceedings, 

	
			
	 
	5
	 

penalties, fines, judgments, damages, fees, costs, expenses, claims, obligations, or other liabilities (“Claims”) which may be alleged or incurred by a Seller Indemnitee (regardless of when same are suffered or incurred):  (a) arising directly or indirectly out of or in any way connected with the purchase, registration, performance, transportation, management, sale, inspection, testing, delivery, leasing, replacement, removal or redelivery, condition, ownership, manufacture, design, maintenance, service, repair, overhaul, improvement, modification or alteration, possession, control, use, operation or other activity of the Engines by Buyer or relating to loss or destruction of or damage to any property, or death or injury to any person caused by, relating to or arising from or out of (in each case whether directly or indirectly) any of the foregoing matters, or whether it arises out of or is attributable to any act or omission or otherwise of Buyer and in respect of or to the extent attributable to the period from and after Delivery or (b) as a result of the breach by Buyer of any of its obligations, representations or warranties hereunder or any documents entered into in connection therewith or (c) for taxes in any jurisdiction, including interest and penalties thereon, imposed on or in connection with the Engines and which are imposed with regard to the time period after Delivery (but excluding Delivery);
Provided that the indemnities from the Buyer contained in this clause 4.2 shall not extend to any Claims to the extent that such Claims:
(i)    arise out of any act, omission, event or circumstance occurring in respect of the Engines before Delivery;
(ii)    are caused by the willful misconduct or gross negligence of any of the Seller Indemnities; 
(iii)    to the extent such Losses arise from an act or omission of Seller or a Seller Indemnitee as a manufacturer, repairer or servicer of aviation products; or
(iv)    are the result of a failure by Seller to comply with any of its obligations under this Agreement or any representation or warranty of Seller contained in this Agreement not being true and correct.
4.3    Seller Indemnity.  Seller agrees to indemnify, defend, save and hold harmless each Buyer Indemnitee from and against any and all Claims which may be alleged or incurred by a Buyer Indemnitee (regardless of when same are suffered or incurred):  (a) arising directly or indirectly out of or in any way connected with the purchase, registration, performance, transportation, management, sale, inspection, testing, delivery, leasing, replacement, removal or redelivery, condition, ownership, manufacture, design, maintenance, service, repair, overhaul, improvement, modification or alteration, possession, control, use, operation or other activity of the Engines by Seller or relating to loss or destruction of or damage to any property, or death or injury to any person caused by, relating to or arising from or out of (in each case whether directly or indirectly) any of the foregoing matters, or whether it arises out of or is attributable to any act or omission or otherwise of Seller and in respect of or to the extent attributable to the period prior to Delivery (but excluding Delivery); or (b) as a result of the breach by Seller of any of its obligations, representations or warranties hereunder or any documents entered into in connection therewith; or (c) for taxes in any jurisdiction, including interest and penalties thereon, imposed on or in connection with the Engines and which are imposed with regard to the time period prior to Delivery (but excluding Delivery);
Provided that the indemnities from the Seller contained in this clause 4.3 shall not extend to any Claims to the extent that such Claims:
(i)    arise out of any act, omission, event or circumstance occurring in respect of the Engines after Delivery;

	
			
	 
	6
	 

(ii)    are caused by the willful misconduct or gross negligence of any of the Buyer Indemnities; 
(iii)    to the extent such Losses arise from an act or omission of Buyer or a Buyer Indemnitee as a manufacturer, repairer or servicer of aviation products; or
(iv)    are the result of a failure by Buyer to comply with any of its obligations under this Agreement or any representation or warranty of Buyer contained in this Agreement not being true and correct.
Any payment or indemnity made under this Section by either party shall include any amount necessary to hold the Seller Indemnitee (or Buyer Indemnitee, as the case may be) harmless on an after-tax basis from all withholding taxes and other taxes, fees and other charges required to be paid with respect to such payment or indemnity under all applicable laws.  Each party shall give prompt written notice to the other party of any liability for which it is, or may be, liable under this provision; provided, however, failure to give such notice will not terminate any of the rights of such indemnitee hereunder.
4.4    Insurance.  Buyer shall comply with each of the provisions of Exhibit C hereto, which provisions are hereby incorporated by reference as if set forth in full herein.
4.5    Post-Delivery Maintenance Commitment.  Buyer and Seller acknowledge that (1) both Engines are undergoing maintenance qualifying as a C check at the Inspection Facility and (2) that the engine mounts for ESN V10543 will be exchanged for acceptable replacement mounts.  Buyer and Seller agree that (A) each will be responsible for 50% of the cost of the C checks on the Engines (including without limitation the Engine maintenance items found and corrected by the Inspection Facility), and (B) Seller will be responsible for the costs of the engine mounts exchange, provided that (C) if upon removal and inspection of the engine mounts it is determined that the engine mounts are beyond economic repair (BER), then the engine mount exchange will proceed no further, Seller may retain the engine mounts and Seller shall promptly pay $[         ] to Buyer toward the cost of replacement of the engine mounts.  In no event shall Seller’s liability arising under this paragraph exceed $[          ].
4.6    Survival.  The parties further agree and confirm that their obligations and agreements in this Section 4 shall survive the execution and delivery of this Agreement and the payment of the Purchase Price for the Engines hereunder.
Section 5.    Excusable Delay.  Neither party hereto shall be responsible for, nor be deemed to be in default or breach of, this Agreement as a result of any delay in Delivery due to injunction against sale or any causes beyond its control and not occasioned by its negligence or willful misconduct, including, but not limited to, acts of God or the public enemy, acts of government, civil wars, insurrection or riots, fires, floods, explosions, earthquakes or other casualties, strikes or labor troubles causing cessation, slowdown or interruption of work.  Any party failing to perform its obligations under this Agreement as a result of an event described in this Section 5 shall use commercially reasonable efforts to mitigate the damages caused by such event, but shall also use commercially reasonable efforts to perform its obligations hereunder.
Section 6.    Representations and Warranties.
6.1    Representations and Warranties of Seller    .  Seller hereby makes the following representations at execution and delivery of this Agreement, and at Delivery:

	
			
	 
	7
	 

(a)    Organization, Etc.  Seller is duly formed, validly existing and in good standing under the laws of the jurisdiction of its formation and has the power and authority to enter into and perform its obligations under this Agreement.
(b)    Authorization.  Seller has taken, or caused to be taken, all necessary company or organizational action (including, without limitation, the obtaining of any consent or approval of any of its members or any managers required by its certificate of formation, limited liability company agreement or other charter documents) to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder.
(c)    No Violation.  The execution and delivery by Seller of this Agreement, the performance by Seller of its obligations hereunder, and the consummation by Seller on the date hereof and on the Delivery Date of the transactions contemplated hereby, do not and will not (i) violate or contravene any provision of any certificate of formation or other charter documents of Seller, (ii) violate or contravene any law applicable to or binding on Seller, or (iii) violate, contravene or constitute any default under, or result in the creation of any Lien under, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other material agreement, instrument or document to which Seller is a party or by which Seller or any of their respective properties is or may be bound or affected.
(d)    Approvals.  The execution and delivery by Seller of this Agreement, the performance by Seller of its obligations hereunder, and the consummation by Seller on the date hereof and on the Delivery Date of the transactions contemplated hereby, do not and will not require the consent, approval or authorization of, or the giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (i) any trustee or other holder of any debt of Seller, or (ii) any Government Entity.
(e)    Valid and Binding Agreement.  This Agreement has been duly authorized, executed and delivered by Seller and, assuming the due authorization, execution and delivery by any other party or parties thereto, this Agreement constitutes the legal, valid and binding obligations of Seller, enforceable against Seller in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity.
(f)    Title.  Upon delivery of a Warranty Bill of Sale by Seller to Buyer, Seller shall transfer full good and marketable legal and beneficial title to the Engine to Buyer free and clear of all Liens.
(g)    Litigation.  There are no pending or, to the actual knowledge of Seller or any of its affiliates, threatened actions or proceedings against Seller before any court, administrative agency or tribunal which, if determined adversely to Seller, would adversely affect the ability of Seller to perform any of its obligations under this Agreement.
6.2    Representations and Warranties of Buyer.  Buyer hereby makes the following representations at execution and delivery of this Agreement, and at Delivery:
(a)    Organization, Etc.  Buyer is duly formed, validly existing and in good standing under the laws of the jurisdiction of its formation and has the power and authority to enter into and perform its obligations under this Agreement.
(b)    Corporate Authorization.  Buyer has taken, or caused to be taken, all necessary company or organizational action (including, without limitation, the obtaining of any consent or approval of any of its members or any managers required by its certificate of formation, limited liability company 

	
			
	 
	8
	 

agreement or other charter documents) to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder.
(c)    No Violation.  The execution and delivery by Buyer of this Agreement, the performance by Buyer of its obligations hereunder and thereunder, and the consummation by Buyer on the date hereof and on the Delivery Date of the transactions contemplated hereby and thereby, do not and will not (i) violate or contravene any provision of the constitutive documents of Buyer, (ii) violate or contravene any law applicable to or binding on Buyer, or (iii) violate, contravene or constitute any default under, or result in the creation of any Lien under, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other material agreement, instrument or document to which Buyer is a party (other than an interest in a general debenture relating to the Buyer’s general financing arrangements with its banking syndicate) or by which Buyer or any of its properties is or may be bound or affected.
(d)    Approvals.  The execution and delivery by Buyer of this Agreement, the performance by Buyer of its obligations hereunder and thereunder, and the consummation by Buyer on the date hereof and on the Delivery Date of the transactions contemplated hereby or thereby for such date, do not and will not require the consent, approval or authorization of, or the giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (i) any trustee or other holder of any debt of Buyer, or (ii) any Government Entity.
(e)    Valid and Binding Agreement.  This Agreement has been or will be duly authorized, executed and delivered by Buyer and, assuming the due authorization, execution and delivery by the other party or parties thereto, this Agreement constitutes the legal, valid and binding obligations of Buyer and is or will be enforceable against Buyer in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity.
(f)    Litigation.  There are no pending or, to the actual knowledge of Buyer, threatened actions or proceedings against Buyer before any court, administrative agency or tribunal which, if determined adversely to Buyer, would adversely affect the ability of Buyer to perform any of its obligations under this Agreement.
6.3    Limitation of Warranties and Agreements.  THE ENGINES, THE PARTS THEREOF, AND ANY OTHER THING DELIVERED, SOLD OR TRANSFERRED HEREUNDER ARE BEING SOLD AND TRANSFERRED TO BUYER AND ACCEPTED BY BUYER HEREUNDER “AS-IS, WHERE-IS,” WITH ALL FAULTS.  BUYER UNCONDITIONALLY AGREES THAT AS BETWEEN BUYER AND SELLER THE ENGINES AND EACH PART THEREOF IS TO BE SOLD AND PURCHASED IN AN AS IS, WHERE IS, WITH ALL FAULTS CONDITION AS AT THE DELIVERY DATE, AND NO WARRANTY, REPRESENTATION OR COVENANT OF ANY KIND HAS BEEN ACCEPTED, MADE OR IS GIVEN BY SELLER OR ITS SERVANTS OR AGENTS IN RESPECT OF THE AIRWORTHINESS, VALUE, QUALITY, DURABILITY, CONDITION, DESIGN, OPERATION, DESCRIPTION, MERCHANTABILITY OR FITNESS FOR USE OR PURPOSE OF THE ENGINES OR ANY PART THEREOF, AS TO THE ABSENCE OF LATENT, INHERENT OR OTHER DEFECTS (WHETHER OR NOT DISCOVERABLE), AS TO THE COMPLETENESS OR CONDITION OF THE ENGINE RECORDS, OR AS TO THE ABSENCE OF ANY INFRINGEMENT OF ANY PATENT, COPYRIGHT, DESIGN OR OTHER PROPRIETARY RIGHTS; AND ALL CONDITIONS, WARRANTIES AND REPRESENTATIONS (OR OBLIGATION OR LIABILITY, IN CONTRACT OR IN TORT) IN RELATION TO ANY OF THOSE MATTERS, EXPRESSED OR IMPLIED, STATUTORY OR OTHERWISE, ARE EXPRESSLY EXCLUDED.

	
			
	 
	9
	 

Section 7.    Miscellaneous.
7.1    Notices.  Every notice, request, demand or other communication (collectively, “Notice”) under this Agreement shall:
(a)    be in writing delivered personally or by prepaid courier or other similar services or by electronic mail and in the case of a Notice sent by e-mail, shall be accompanied by a copy sent by prepaid air mail letter;
(b)    be deemed to have been received, in the case of an e-mail upon the earlier of (i) confirmation of receipt of such e-mail by the addressee; or (ii) on the fifth day after sending, provided the sender thereof has not received actual notice of failed delivery, and, in the case of a Notice delivered personally or by courier service, when delivered (provided that if delivery is tendered but refused, such Notice shall be deemed effective upon such tender); and
(c)    be sent:
to Buyer at: 

Cross Ocean FUND 1 (INTL) 5 Designated Activity Company
20 Horseneck Lane
Greenwich, CT  06830
Attention:  Brandt Wilson
Telephone: (203) 340-7863
Email:  BW@crossoceanpartners.com

to Seller at:

Contrail Aviation Support, LLC
435 Investment Court
Verona, WI 53593
Attention: Joseph G. Kuhn 
Telephone: (608) 848-8100
Email: joe@contrail.com

or to such other address or facsimile number as is notified by one party to the other party under this Agreement.
7.2    Assignment.  This Agreement may not be assigned by either party without the prior written consent of the other party hereto.  
7.3    Headings.  All headings in this Agreement are for convenience only, and are not a substantive part of this Agreement.
7.4    Brokers’ Commissions.
(a)    Buyer represents that it has not engaged any agent or broker entitled to any compensation as a result of the transactions contemplated by this Agreement.  Buyer agrees to indemnify each Seller Indemnitee from and against all claims, demands, liabilities, damages, losses and judgments (including reasonable attorneys’ fees, consultants’ fees and court costs) which arise out of Buyer’s actions with respect to agents or brokers.

	
			
	 
	10
	 

(b)    Seller represents that it has not engaged any agent or broker entitled to any compensation as a result of the transactions contemplated by this Agreement.  Seller agrees to indemnify each Buyer Indemnitee from and against all claims, demands, liabilities, damages, losses and judgments (including reasonable attorneys’ fees, consultants’ fees and court costs) which arise out of Seller’s obligations, if any, to agents or brokers.
7.5    Survival of Representations, Warranties, Covenants and Indemnities.  Each of the representations, warranties, covenants and indemnities of the parties hereto shall survive the execution and delivery of this Agreement and the Delivery of the Engines.
7.6    Governing Law; Jurisdiction.  
(a)     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, U.S.A. APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD FOR CONFLICT OF LAW PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).
(b)    The parties agree that the federal courts located in New York, New York (in the Borough of Manhattan) are to have exclusive jurisdiction to settle any disputes in connection with this Agreement and any other matters related hereto and hereby irrevocably submit to the exclusive jurisdiction of such courts in connection with this Agreement and any other matters related hereto.
(c)    Each party hereto:
(i)    waives objection to such courts on grounds of inconvenient forum, venue or otherwise as regards proceedings in connection with this Agreement and other documents related hereto; and
(ii)    agrees that (subject to permitted appeals) a judgment or order of such a court in connection with this Agreement or the other documents related hereto is conclusive and binding on it and may be enforced against them in the courts of any other jurisdiction.
7.7    Entire Agreement.  This Agreement shall constitute the entire agreement between the parties with respect to the transactions contemplated herein, supersede any prior or contemporaneous agreements, whether oral or in writing, between the parties, and this Agreement shall not in any manner be supplemented, amended or modified except by a writing executed on behalf of the parties by their authorized representatives.  This Agreement shall not be interpreted or construed against any party to this Agreement because that party or attorney for that party drafted the Agreement or participated in the drafting of this Agreement, and the parties expressly waive any law, common law or court decision to the contrary.
7.8    Waivers    .  The waiver of performance of any term of this Agreement in a particular instance shall not constitute a waiver of any subsequent breach or preclude either party from thereafter demanding performance thereof according to the provisions hereof.
7.9    Unenforceability.  Any provision of this Agreement that 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 or affecting the validity or enforceability of such provisions in any other jurisdiction.

	
			
	 
	11
	 

7.10    Counterparts.  This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but both of which together will constitute one and the same agreement, and which shall be sufficiently evidenced by any one of such original counterparts.  A facsimile signature on any counterpart hereto will be deemed an original for all purposes.
7.11    Expenses.  Except as otherwise expressly provided herein, each party shall be responsible for and shall pay the costs and expenses incurred by it in connection with the negotiation and drafting of this Agreement and the consummation of the transactions contemplated hereby, including attorneys’ fees and expenses and technical, inspection and/or appraisal costs.  
7.12    Confidentiality.  The parties each acknowledge that the commercial and financial information contained in this Agreement is considered confidential.  The parties each agree that it will treat the contents and subject matter of this Agreement as confidential and will not, without the prior written consent of the other, disclose this Agreement or the subject matter hereof to any third party except to their respective affiliates and its and their respective employees, officers, directors, managers, partners, professional advisors, potential financing sources, insurance brokers, auditors and or other agents (“Representatives”), as may be required by applicable law or rule or regulation, or as may be required to enforce the terms of this Agreement.  Upon disclosure required by any applicable law, rule or regulation, such disclosing party shall use its commercially reasonable efforts to secure confidential treatment from all recipients of such confidential information and shall cooperate with the efforts of the other party to ensure such treatment; provided that this sentence shall not apply where such disclosure makes the previously confidential information publicly available.  Each party shall inform its Representatives that it expects them to comply with the provisions of this Section 7.12 and each party shall be responsible for any breach of the provisions of this Section 7.12 by any of its Representatives.
7.13    No Third Party Beneficiaries.  Except as provided in Sections 4 and 7.4 hereof, no third party is intended to benefit from, nor may any third party seek to enforce any of the provisions of, this Agreement.
7.14    Limitation of Damages.  No party will in any event be liable to any other party for any indirect, special, consequential or punitive damages arising out of any breach or otherwise in respect of this Agreement or the subject matter hereof, except, for the avoidance of doubt, to the extent the indemnification provisions hereunder require an indemnity in respect of such damages which are recoverable by a person not a party hereto against a Seller Indemnitee or a Buyer Indemnitee, it being understood that this provision shall not limit or expand the scope or content of such indemnification provisions.
7.15    Cape Town Convention.  Seller hereby covenants and agrees that once legal title to an Engine has duly passed to Buyer pursuant to a Warranty Bill of Sale, Seller will consent to the registration at the International Registry (as defined in the Cape Town Convention) of a contract of sale registration for such Engine with respect to the Warranty Bill of Sale.
7.16    Know your Customer.  Buyer and Seller each represents and warrants, as to itself, that neither it, nor any of its officers, directors, shareholders or owners is a Specifically Designated National or on the Blocked Persons List promulgated by United States Department of Treasury’s Office of Foreign Assets Control nor Buyer nor Seller nor any such person mentioned above on any other similar list maintained by the United States Department of State, the United States Department of Commerce or any other United States governmental body or pursuant to any Executive Order of the President of the United States of America.  Buyer hereby represents and warrants to Seller, as of the date hereof, and as of each 

	
			
	 
	12
	 

Delivery Date (which representations and warranties shall survive the date as of which such representations and warranties were made), that: it has complied with all applicable Sanctions Laws and Regulations.  
“Sanctions Laws and Regulations” means (i) each of the Trading With the Enemy Act of 1917, the International Emergency Economic Powers Act, the Arms Export Control Act, the Export Administration Act, the Export-Import Bank Act, and the Nuclear Proliferation Prevention Act; (ii)  applicable Executive Orders issued by the President of the United States of America; (iii) applicable regulations of the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”), the Export Administration Regulations (“EAR”) administered by the U.S. Department of Commerce (“DOC”), the International Traffic in Arms Regulations (“ITAR”) administered by the U.S. Department of State (“DOS”), and regulations administered by any other agency of the Government of the United States of America; (iv) any other applicable law or regulation of the United States of America that may be in effect from time to time and which may restrict, limit, or prohibit transactions with a foreign government, entity, person, or country or with any person or entity that owns the foregoing; and (v) applicable resolutions, orders, or regulations of the United Nations.

[Signature page follows.]

	
			
	 
	13
	 

IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the date first above written.
	
		
	 CONTRAIL AVIATION SUPPORT, LLC, as Seller

By:   /s/ Joseph G. Kuhn    
   Name: Joseph G. Kuhn 
   Title: CEO
	CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC, as Buyer 

By:   /s/ David O’Brien    
   Name: David O’Brien 
   Title: Director

	 
	 

	
			
	 
	 
	 

SCHEDULE 1
DELIVERY CONDITION
The Engines shall be delivered in the following condition on the Delivery Date and otherwise in “as-is, where-is” condition:
1.    Full QEC configuration as set out in Schedule 2 attached hereto.
2.    Buyer shall have received a current FAA 8130-3/Dual Release Certificate evidencing the serviceability of each Engine.
3.    Buyer shall have received an acceptable industry standard “Tie-In Letter”, the form of which will be agreed upon in connection with the execution of this Agreement, tracing each Engine back to its last operator.
4.    Receipt by Buyer of an executed standard Non-Incident/Non-Accident Statement certifying that each Engine has not been involved in any reportable incident or accident.
5.    All other installed components preserved per industry stand procedures consistent with the manufacturer’s AMM guidelines.  
6.    Vapor barrier wrapped per industry standards.  
7.    All related Engine Records related to the foregoing.  

	
			
	 
	 
	 

SCHEDULE 2
FORM QEC LISTING

	
			
	 
	 
	 

	
							
	

A IR C RA F T I NS P EC T I O N & MA NA GEMEN T , L LC 
2481 W. Poppy Avenue, Tucson, Arizona 85705 – Office (520) 399-6489 Fax (920) 579-8855
FAA CRS # 8 AJR305B / EASA 145.6258
Specializing Worldwide in
CFM56-3/5/7 Surgical Strike Repair / Modular Maintenance Borescope Inspections  LPT & HPC Boroblend Repairs
Top & Bottom Case Repairs  Engine Runs  Removal & Installation of Engines & APU’s
8130 Dual Release Serviceable Tags  Equipment Rental  Records Review
AIMFAAMRO.COM   FAA & EASA CERTIFIED REPAIR STATION

	WORK ORDER #:
	19-08-22-02R

	CUSTOMER:
	Contrail Aviation Support

	ESN:
	V11255
	V2500 Series

	ENGINE MODEL:
	V2524-A5
	QEC INVENTORY REPORT REVISION 1

	DATE
	September 5th, 2019

	 
	Description
of Component
	Typical Part Number
	Qty 
req
	Part No. Installed
	Serial No
	Installed?
 (Y / N)

	I
	LP/HP FUEL PUMP
	5009913G
	1
	5009913G
	4736
	y

	2
	FUEL DIVERTER & RETURN VALVE
	17300G09
	1
	17300G09
	1193
	y

	3
	FUEL METERING UNIT
	8061-636
	1
	8061-639
	13182241
	y

	4
	ENGINE ELECTRONIC CONTROL
	824972-7-022
	1
	824972-11-022
	2540-6548
	y

	5
	ACOC AIR CONTROL VALVE
	8910-620
	1
	TYl558-52
	P523
	y

	6
	IDG OIL TEMP THERMOCOUPLE
	73984300
	1
	73984300
	4698
	y

	7
	IDG OIL COOLER
	16844-000-C
	1
	16844--000-C
	1346
	y

	8
	IDG
	766219
	1
	772292
	198
	y

	9
	HYDRAULIC PUMP
	3031863-001
	1
	3031863-00 I
	MX658425
	y

	10
	IP BLEED CHECK VALVE
	2290B020000
	1
	2293B020000
	10456
	y

	I I
	HIGH PRESS. BLD VALVE
	6773E010000
	1
	6713D080000
	1796
	y

	12
	PRSOV
	6740F010000
	1
	6714D070000
	1532
	y

	13
	FRONT MOUNT
	745-2010-503
	1
	740-2011-505
	22102
	y

	14
	REAR MOUNT
	740-2041-503
	1
	740-2041-503
	10703
	y

	15
	RELAY BOX
	005RL03
	1
	005-RL-05
	1318
	y

	16
	FUEL DISTIBUTOR VALVE
	796050-1
	1
	796050-1
	F54632
	y

	17
	DATA ENTRY PLUG
	2A3106CLOI
	1
	2A3106CLOI
	PSGCAK3553
	y

	18
	PMA STATOR
	430201
	1
	430201-1
	105
	y

	19
	FUEL FLOW TRANSMITTER
	9-217-59
	1
	9-217-59
	T8163
	y

	20
	FUEL FILTER DP SWITCH
	21SN04-300B
	1
	21SN04-300B
	FOl5396
	y

	21
	FUEL TEMP THERMOCOUPLE
	22912-000
	1
	22912-000
	343918
	y

	22
	IGNITION EXCITER A
	9045415-5
	1
	9045415-5
	N/V
	y

	23
	IGNITION EXCITER B
	9045415-5
	1
	9045415-5
	N/V
	y

	24
	ACAC
	Dl876-IOOOA
	1
	DI 876-5000A
	17038196
	y

	25
	ACC VALVE
	5860016-139
	1
	5860016-139
	1897
	y

	
			
	 
	 
	 

	
								
	 
	Description
of Component
	

Typical Part Number
	Qty 
req
	

Part No. Installed
	

Serial No
	Installed? 
(Y / N)

	26
	ACC ACTUATOR
	5860017-139
	1
	5860017-139
	2194
	y

	27
	BLEED ACTUATOR MASTER
	177901
	 
	1777MK3
	17771357
	y

	28
	BSBVA SLAVE
	1778MK I
	1
	1778MKI
	17781287
	y

	29
	VARIABLE STATOR VANE ACTUATOR
	2607MK2
	1
	G4000VSVAOI
	AAG I7-133
	y

	30
	HPC STG. 7 SOLENOID VLV.
	AC69572
	1
	AC69572
	EGX078
	y

	31
	HPC STG. 7 SOLENOID VLV.
	AC69572
	1
	AC69572
	EGX073
	y

	32
	HPC STG. 7 SOLENOID VLV.
	AC69572
	1
	AC69572
	EGX082
	y

	33
	HPC ZONE 2 FIRE DETECTOR
	7827-02
	1
	3601-97-650
	106872
	y

	34
	HPC ZONE 2 FIRE DETECTOR
	7827-02
	1
	3601-97-650
	106871
	y

	35
	HPC STG 7 Bleed Valve
	AC69924
	1
	AC69924
	EHV I59
	y

	36
	HPC STG 7 Bleed Valve
	EB101729B
	1
	AC69924
	EH4282
	y

	37
	HPC STG 7 Bleed Valve
	EBI0I729B
	1
	AC69924
	EAF210
	y

	38
	HPC STAGE IO SOLENOID VALVE
	AC69576
	1
	AC69576
	EGV671
	y

	39
	HPC STAGE 10 SOLENOID VALVE
	AC69674
	1
	AC69574
	EHQ079
	y

	40
	OIL QTY. TRANSMITTER
	76-167-4
	1
	76-167-4
	728014
	y

	41
	OIL PRESS. TRANSMITTER
	41SG240-l
	1
	4ISG240-l
	B054264
	y

	42
	LOW OIL PRESS. SWITCH
	21SN04-275A
	1
	21SN04-275A
	F040693
	y

	43
	SCAVENGE F. PRESS. SWITCH
	21 SN04-298A
	1
	21SN04-298A
	B025977
	y

	44
	STARTER
	790425A6
	1
	790425A9
	PS4-1056
	y

	45
	STARTER AIR VALVE
	790424-4   -
	1
	790424-4
	Al l 79
	y

	46
	STAGE IO AIR VALVE
	5860010-108
	1
	N/V
	N/V
	y

	47
	HPC STG IO BLEED V/\LVE
	5950041-108
	1
	5950041-108
	1428
	y

	48
	VIBRATION TRANSDUCER
	!
	1
	144-171-000-111
	1941
	y

	49
	OIL TANK ASSY.
	4A7004-0l
	1
	4A7004-0l
	FACT2061-FLS8
	y

	50
	AIR COOLED OIL COOLER
	50069001 -1
	1
	50026001-1
	1365
	y

	51
	N0.4 BEARING SCAVENGE V/\LVE
	32F0003
	1
	1779MK2
	1779128
	y

	52
	N0.4 BRG PRESSURE TRANSDUCER
	41SG272-5
	1
	42SG272-5
	J0!7176
	y

	53
	PUMP ASSY OIL SCAVENGE
	4A7121
	1
	4A7124A
	FACT2063
	y

	54
	PUMP & FILTER ASSY OIL. PRESS.
	4A7110
	1
	4A7110
	FACT5801
	y

	55
	GEAR BOX HOUSING
	4Al075-C
	1
	4Al075-C
	603024
	y

INSPECTOR: (SIGN)                          STAMP:    REVISION 1 DATE:
NOV 7, 2019
____________________                          

	
			
	 
	 
	 

	
							
	A IR C RA F T I NS P EC T I O N & MA NA GEMEN T , L LC 
2481 W. Poppy Avenue, Tucson, Arizona 85705 – Office (520) 399-6489 Fax (920) 579-8855
FAA CRS # 8 AJR305B / EASA 145.6258
Specializing Worldwide in
CFM56-3/5/7 Surgical Strike Repair / Modular Maintenance Borescope Inspections  LPT & HPC Boroblend Repairs
Top & Bottom Case Repairs  Engine Runs  Removal & Installation of Engines & APU’s
8130 Dual Release Serviceable Tags  Equipment Rental  Records Review
AIMFAAMRO.COM   FAA & EASA CERTIFIED REPAIR STATION

	WORK ORDER #:
	19-08-22-02R

	CUSTOMER:
	Contrail Aviation Support

	ESN:
	V10543
	V2500 SERIES

	ENGINE MODEL:
	V2527E-A5
	QEC INVENTORY REPORT REVISION 1

	DATE
	September 6th, 2019

	 
	Description of Component
	Typical Part Number
	Qty 
req
	Part No. Installed
	Serial No
	Installed?
(Y / N)

	1
	LP/HP FUEL PUMP
	5009913G
	1
	5009913E
	3391
	y

	2
	FUEL DIVERTER & RETURN VALVE
	17300G09
	1
	17300G09
	2283
	y

	3
	FUEL METERING UNIT
	8061·636
	1
	8061-639
	11977388
	y

	4
	ENGINE ELECTRONIC CONTROL
	824972-7-022
	1
	824972-7-022
	2540-1155
	y

	5
	ACOC AIR CONTROL VALVE
	8910-620
	1
	8910-620
	13965748
	y

	6
	IDG OIL TEMP THERMOCOUPLE
	73984300
	1
	73984300
	2739
	y

	7
	IDG OIL COOLER
	16844-000-C
	1
	16844-000-C
	607
	y

	8
	IDG
	766219
	1
	766219
	W0266
	y

	9
	HYDRAULIC  PUMP
	3031863-001
	1
	4205401
	42054015167
	y

	JO
	IP BLEED CHECK VALVE
	2290B020000
	I
	2290B020000
	01493A
	y

	11
	HIGH PRESS. BLD VALVE
	6773E010000
	I
	6713D080000
	624
	y

	12
	PRSOV
	6740F010000
	1
	6714D070000
	702
	y

	13
	FRONT MOUNT
	745-2010-503
	1
	740-2011-505
	81297
	y

	14
	REAR MOUNT
	740-2041-503
	1
	740-2040-503
	82197
	y

	15
	RELAY BOX
	005RL03
	I
	005RL03
	2271
	y

	16
	FUEL DISTIBUTOR VALVE
	796050-1
	1
	796051-1
	745019
	y

	17
	DATA ENTRY PLUG
	2A3106CL01
	1
	2A3106CL01
	PS6CAJ2753
	y

	18
	PMA STATOR
	430201
	1
	430201-1
	658
	y

	19
	FUEL FLOW TRANSMITTER
	9-217-59
	1
	9-217-59
	19718
	y

	20
	FUEL FILTER DP SWITCH
	21 SN04-300B
	1
	21SN04-300B
	W64596
	y

	21
	FUEL TEMP THERMOCOUPLE
	22912-000
	1
	22912-000
	353203
	y

	22
	IGNITION  EXCITER A
	9045415-5
	1
	9045415-5
	N/V
	y

	23
	IGNITION  EXCITER B
	9045415-5
	1
	9045415-5
	N/V
	y

	24
	ACAC
	Dl876-1000A
	1
	Dl876-1000A
	4111083
	y

	25
	ACC VALVE
	5860016-139
	1
	5860016-139
	1144
	y

	
			
	 
	 
	 

	
							
	 
	Description of Component
	

Typical Part Number
	Qty
 req
	

Part No. Installed
	

Serial No
	Installed? 
(Y / N)

	26
	ACC ACTUATOR
	5860017-139
	1
	5860017-144
	588
	y

	27
	BSBVA MASTER
	177901
	 
	1777MK3
	1777601
	y

	28
	BSBVA SLAVE
	1778MKI
	1
	1778MKI
	I 77857I
	y

	29
	VARIABLE STATOR VANE ACTUATOR
	2607MK2
	1
	2607MK3
	2607707
	y

	30
	HPC STG. 7 SOLENOID VLV.
	AC69572
	1
	AC69572
	EAS082
	y

	3I
	HPC STG. 7 SOLENOID VLV.
	AC69572
	1
	AC69572
	EAT072
	y

	32
	HPC STG. 7 SOLENOID VLV.
	AC69572
	1
	AC69572
	ECW068
	y

	33
	HPC ZONE 2 FIRE DETECTOR
	7827-02
	1
	360I-97-650
	92I 08
	y

	34
	HPC ZONE 2 FIRE DETECTOR
	7827-02
	1
	360I-97-650
	92I 09
	y

	35
	HPC STG 7 Bleed Valve
	AC69924
	1
	EB101729B
	KAB427
	y

	36
	HPC STG 7 Bleed Valve
	EB101729B
	1
	EB101729B
	MBBI20
	y

	37
	HPC STG 7 Bleed Valve
	EB101729B
	1
	EBI01729B
	KMA220
	y

	38
	HPC STAGE IO SOLENOID VALVE
	AC69576
	1
	AC69576
	BDUI43
	y

	39
	HPC STAGE IO SOLENOID VALVE
	AC6964
	1
	AC69245
	MBB2I6
	y

	40
	HPC STAGE IO SOLENOID VALVE
	AC69674
	1
	AC69674
	ED4299
	y

	4I
	OIL QTY. TRANSMITTER
	76-I67-4
	1
	76-I67-10
	AAR0729
	y

	42
	OIL PRESS. TRANSMITTER
	41SG240-l
	1
	4ISG240-I
	144430
	y

	43
	LOW OIL PRESS. SWITCH
	21SN04-275A
	1
	2ISN04-275A
	W64073
	y

	44
	SCAVENGE F. PRESS. SWITCH
	21SN04-298A
	1
	2 I SN04-298A
	W64997
	y

	45
	STARTER
	790425A6
	1
	790425A6
	Al0078
	y

	46
	STARTER AIR VALVE
	790424-4
	1
	790424-4
	A0726
	y

	47
	STAGE 10 AIR VALVE
	5860010-108
	1
	58600I0-108
	1380
	y

	48
	HPC STG 10 BLEED V /\LYE
	595004I-108
	1
	5950041-108
	382
	y

	49
	VIBRATION TRANSDUCER
	144-171-000-111
	1
	144-171-000-111
	AC47686
	y

	50
	OIL TANK ASSY.
	4A7004-0I
	1
	4A7004-0IC
	FAAY3942
	y

	5I
	AIR COOLED OIL COOLER
	50069001 -1
	1
	5006900I-I
	HEX35-2292
	y

	52
	N0.4 BEARING SCAVENGE VA LVE
	32F0003
	1
	32F0003
	TE000975
	y

	53
	N0.4 BRG PRESSURE TRANSDUCER
	4ISG272-5
	1
	42SG272-5
	C0I3556
	y

	54
	PUMP ASSY OIL SCAVENGE
	4A7I2I
	1
	4A7I2I
	FAAJ0074
	y

	55
	PUMP & FILTER ASSY OIL PRESS.
	4A7I 10
	1
	4A7I I O
	FAAY3923
	y

	56
	GEAR BOX HOUSING
	4A1075-C
	1
	4A1 075-C
	602303
	y

INSPECTOR: (SIGN)                STAMP:         REVISION 1 DATE:
NOV 7, 2019        

____________________                           
          

	
			
	 
	 
	 

WARRANTY BILL OF SALE

November 8, 2019

CONTRAIL AVIATION LEASING, LLC ("Seller") owns full legal and beneficial title to that certain V2524-A5 model engine bearing manufacturer's serial number V 11255 in full QEC configuration and all available engine records associated therewith (collectively, the “Engine”).

For [          ] ($[    ]), and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged,  Seller hereby sells, grants, transfers  and delivers to CONTRAIL AVIATION SUPPORT, LLC (“Buyer”), full legal and beneficial title and interest in and to the Engines.

The undersigned hereby warrants to Buyer (and Buyer's successors and assigns) that Seller conveys to Buyer full good and marketable legal and beneficial title to the Engine, free and clear of all liens and encumbrances, and that Seller shall warrant and defend such title against any claims and demands; provided, that the Engine is otherwise conveyed “AS IS”, “WHERE IS” AND “WITH ALL FAULTS” AND (EXCEPT AS PREVIOUSLY PROVIDED IN THIS  PARAGRAPH) WITHOUT REPRESENTATION OR WARRANTY OF ANY TYPE OR KIND, EXPRESS OR IMPLIED, WITH RESPECT THERETO (INCLUDING, WITHOUT LIMITATION, AS TO CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE) and is subject to each and every disclaimer contained in the Purchase Agreement.

THIS WARRANTY BILL OF SALE IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, U.S.A. APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD FOR CONFLICT OF LAW PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

[Signature page follows.]

	
			
	 
	 
	 

IN WITNESS WHEREOF, Seller has caused this Warranty Bill of Sale to be executed in its name as of the date first written above.

CONTRAIL AVIATION LEASING, LLC, as 
Seller

By: /s/ Joseph G. Kuhn             
       Name:  Joseph G. Kuhn
       Title:    CEO

	
			
	 
	 
	 

WARRANTY BILL OF SALE 
November 8, 2019
CONTRAIL AVIATION SUPPORT, LLC (“Seller”) owns full legal and beneficial title to that certain V2524-A5 model engine bearing manufacturer’s serial number V11255, including the QEC (as defined in the Engine Sale and Purchase Agreement executed by the parties and dated as of November 8, 2019 (the “Purchase Agreement”)) and all other Parts installed thereon, attached thereto or in Seller’s possession and any loose equipment specific thereto, the Engine Records, and the Engine Stand (collectively, as more particularly described on Schedule 1 to the Purchase Agreement, the “Engine”). For avoidance of doubt, the term “Engine” specifically excludes the nose cowl, common nozzle assembly (“CNA”) and thrust reverser associated with the Engine, as further described in Schedule 2 to the Purchase Agreement.
For good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Seller hereby sells, grants, transfers and delivers to CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC (“Buyer”), full legal and beneficial title and interest in and to the Engine.
This Warranty Bill of Sale is delivered pursuant to the Purchase Agreement, between Seller and Buyer.  Capitalized terms used but not defined herein have the meanings ascribed thereto in the Agreement.
The undersigned hereby warrants to Buyer (and Buyer’s successors and assigns) that Seller conveys to Buyer full good and marketable legal and beneficial title to the Engine, the Engine Stand and the Engine Records, free and clear of all Liens, and that Seller shall warrant and defend such title against any claims and demands; provided, that the Engine, the Engine Stand and the Engine Records are otherwise conveyed “AS IS”, “WHERE IS” AND “WITH ALL FAULTS” AND (EXCEPT AS PREVIOUSLY PROVIDED IN THIS PARAGRAPH) WITHOUT REPRESENTATION OR WARRANTY OF ANY TYPE OR KIND, EXPRESS OR IMPLIED, WITH RESPECT THERETO (INCLUDING, WITHOUT LIMITATION, AS TO CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE) and is subject to each and every disclaimer contained in the Purchase Agreement.
THIS WARRANTY BILL OF SALE IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, U.S.A. APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD FOR CONFLICT OF LAW PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).  
[Signature page follows.]

	
			
	 
	 
	 

IN WITNESS WHEREOF, Seller has caused this Warranty Bill of Sale to be executed in its name as of the date first written above.
	
		
	 
	CONTRAIL AVIATION SUPPORT, LLC, as Seller
By:   /s/ Joseph G. Kuhn 
   Name:  Joseph G. Kuhn 
   Title:    CEO

	
			
	 
	 
	 

WARRANTY BILL OF SALE 
November 8, 2019
CONTRAIL AVIATION SUPPORT, LLC (“Seller”) owns full legal and beneficial title to that certain V2527-A5 model engine bearing manufacturer’s serial number and V10543, including the QEC (as defined in the Engine Sale and Purchase Agreement executed by the parties and dated as of November 8, 2019 (the “Purchase Agreement”)) and all other Parts installed thereon, attached thereto or in Seller’s possession and any loose equipment specific thereto, the Engine Records, and the Engine Stand (collectively, as more particularly described on Schedule 1 to the Purchase Agreement, the “Engine”). For avoidance of doubt, the term “Engine” specifically excludes the nose cowl, common nozzle assembly (“CNA”) and thrust reverser associated with the Engine, as further described in Schedule 2 to the Purchase Agreement.
For good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Seller hereby sells, grants, transfers and delivers to CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC (“Buyer”), full legal and beneficial title and interest in and to the Engine.
This Warranty Bill of Sale is delivered pursuant to the Purchase Agreement, between Seller and Buyer.  Capitalized terms used but not defined herein have the meanings ascribed thereto in the Agreement.
The undersigned hereby warrants to Buyer (and Buyer’s successors and assigns) that Seller conveys to Buyer full good and marketable legal and beneficial title to the Engine, the Engine Stand and the Engine Records, free and clear of all Liens, and that Seller shall warrant and defend such title against any claims and demands; provided, that the Engine, the Engine Stand and the Engine Records are otherwise conveyed “AS IS”, “WHERE IS” AND “WITH ALL FAULTS” AND (EXCEPT AS PREVIOUSLY PROVIDED IN THIS PARAGRAPH) WITHOUT REPRESENTATION OR WARRANTY OF ANY TYPE OR KIND, EXPRESS OR IMPLIED, WITH RESPECT THERETO (INCLUDING, WITHOUT LIMITATION, AS TO CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE) and is subject to each and every disclaimer contained in the Purchase Agreement.
THIS WARRANTY BILL OF SALE IS GOVERNED BY AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, U.S.A. APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD FOR CONFLICT OF LAW PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).  
[Signature page follows.]

	
			
	 
	 
	 

IN WITNESS WHEREOF, Seller has caused this Warranty Bill of Sale to be executed in its name as of the date first written above.
	
		
	 
	CONTRAIL AVIATION SUPPORT, LLC, as Seller
By:   /s/ Joseph G. Kuhn 
   Name:  Joseph G. Kuhn 
   Title:    CEO

	
			
	 
	 
	 

TECHNICAL ACCEPTANCE CERTIFICATE
As of November 8, 2019, CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC (the “Buyer”), pursuant to the terms of that certain Engine Sale and Purchase Agreement dated as of November 8, 2019 (the “Agreement”) among Buyer and CONTRAIL AVIATION SUPPORT, LLC (“Seller”), hereby accepts the technical condition of:
one V2524-A5 model engine bearing manufacturer’s serial number V11255, including the QEC and all other Parts installed thereon installed thereon, attached thereto or in Seller’s possession and any loose equipment specific thereto, the Engine Records, and the Engine Stands (collectively, as more particularly described on Schedule 1 to the Agreement, an “Engine”); 
for all purposes under Section 2.6 of the Agreement and acknowledges that the condition of the Engine and related Engine Records and Engine Stand are acceptable to it and the Engine is in the condition contemplated for delivery to Buyer under the Agreement. For avoidance of doubt, the term “Engines” specifically excludes the nose cowls, common nozzle assemblies (“CNAs”) and thrust reversers associated with each Engine, as further described in Schedule 2 to the Agreement.
Capitalized terms used but not defined herein have the meanings ascribed thereto in the Agreement.
Buyer hereby unconditionally and irrevocably acknowledges and agrees that the above listed Engine and the Engine Records are technically accepted by Buyer without exception as of the date hereof.  
[Signature page follows.]

	
			
	 
	 
	 

IN WITNESS WHEREOF, Buyer has caused this Technical Acceptance Certificate to be executed in its name as of the date first written above.
	
		
	 
	CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC, as Buyer
By:   /s/ David O’Brien    
   Name: David O’Brien 
   Title: Director

	
			
	 
	 
	 

TECHNICAL ACCEPTANCE CERTIFICATE
As of November 8, 2019, CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC (the “Buyer”), pursuant to the terms of that certain Engine Sale and Purchase Agreement dated as of November 8, 2019 (the “Agreement”) among Buyer and CONTRAIL AVIATION SUPPORT, LLC (“Seller”), hereby accepts the technical condition of:
one V2527-A5 model engine bearing manufacturer’s serial number V10543, including the QEC and all other Parts installed thereon installed thereon, attached thereto or in Seller’s possession and any loose equipment specific thereto, the Engine Records, and the Engine Stands (collectively, as more particularly described on Schedule 1 to the Agreement, an “Engine”); 
for all purposes under Section 2.6 of the Agreement and acknowledges that the condition of the Engine and related Engine Records and Engine Stand are acceptable to it and the Engine is in the condition contemplated for delivery to Buyer under the Agreement. For avoidance of doubt, the term “Engines” specifically excludes the nose cowls, common nozzle assemblies (“CNAs”) and thrust reversers associated with each Engine, as further described in Schedule 2 to the Agreement.
Capitalized terms used but not defined herein have the meanings ascribed thereto in the Agreement.
Buyer hereby unconditionally and irrevocably acknowledges and agrees that the above listed Engine and the Engine Records are technically accepted by Buyer without exception as of the date hereof.  
[Signature page follows.]

	
			
	 
	 
	 

IN WITNESS WHEREOF, Buyer has caused this Technical Acceptance Certificate to be executed in its name as of the date first written above.
	
		
	 
	CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC, as Buyer
By:   /s/ David O’Brien    
   Name: David O’Brien 
   Title: Director

	
			
	 
	 
	 

DELIVERY CERTIFICATE
November 8, 2019

Reference is made to that certain pursuant to the terms of that certain Engine Sale and Purchase Agreement dated as of November 8, 2019 (the “Agreement”) between CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC (the “Buyer”) and CONTRAIL AVIATION SUPPORT, LLC (“Seller”).  Capitalized terms used but not defined herein shall have the respective meanings set forth in the Agreement. 

Buyer hereby irrevocably accepts delivery of that certain V2524-A5 model engine bearing manufacturer’s serial number V11255, including the QEC and all other Parts installed thereon installed thereon, attached thereto or in Seller’s possession and any loose equipment specific thereto, the Engine Records, and the Engine Stands (collectively, as more particularly described on Schedule 1 to the Agreement, the “Engines” and each an “Engine”). For avoidance of doubt, the term “Engine” specifically excludes the nose cowl, common nozzle assembly (“CNA”) and thrust reverser associated with the Engine, as further described in Schedule 2 to the Agreement.
Such delivery of the Engine is being made at Aircraft Inspection & Management, LLC in Tucson, Arizona at 1:24 p.m. EST on November 8, 2019.  

Buyer hereby unconditionally and irrevocably acknowledges and agrees that (i) the Engine is in the condition required by the Agreement; (ii) Seller has satisfied, or Buyer has waived, as the case may be, each of the conditions set forth in Section 3.1 of the Agreement; (iii) the Engine is satisfactory and acceptable to Buyer in all respects, and is hereby accepted by Buyer under the terms of the Agreement; and (iv) risk of loss, ownership of, and title to the Engine has been transferred to, and accepted by, Buyer on the date and at the time specified above.

[Signature page follows.]

	
			
	 
	 
	 

IN WITNESS WHEREOF, Buyer has caused this Delivery Certificate to be executed in its name as of the date first written above.
	
		
	 
	CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC, as Buyer
By:   /s/ David O’Brien    
   Name: David O’Brien 
   Title: Director

	
			
	 
	 
	 

DELIVERY CERTIFICATE
November 8, 2019

Reference is made to that certain pursuant to the terms of that certain Engine Sale and Purchase Agreement dated as of November 8, 2019 (the “Agreement”) between CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC (the “Buyer”) and CONTRAIL AVIATION SUPPORT, LLC (“Seller”).  Capitalized terms used but not defined herein shall have the respective meanings set forth in the Agreement. 

Buyer hereby irrevocably accepts delivery of that certain V2527-A5 model engine bearing manufacturer’s serial number V10543, including the QEC and all other Parts installed thereon installed thereon, attached thereto or in Seller’s possession and any loose equipment specific thereto, the Engine Records, and the Engine Stands (collectively, as more particularly described on Schedule 1 to the Agreement, the “Engines” and each an “Engine”). For avoidance of doubt, the term “Engine” specifically excludes the nose cowl, common nozzle assembly (“CNA”) and thrust reverser associated with the Engine, as further described in Schedule 2 to the Agreement.
Such delivery of the Engine is being made at Aircraft Inspection & Management, LLC in Tucson, Arizona at 1:24 p.m. EST on November 8, 2019.  

Buyer hereby unconditionally and irrevocably acknowledges and agrees that (i) the Engine is in the condition required by the Agreement; (ii) Seller has satisfied, or Buyer has waived, as the case may be, each of the conditions set forth in Section 3.1 of the Agreement; (iii) the Engine is satisfactory and acceptable to Buyer in all respects, and is hereby accepted by Buyer under the terms of the Agreement; and (iv) risk of loss, ownership of, and title to the Engine has been transferred to, and accepted by, Buyer on the date and at the time specified above.

[Signature page follows.]

	
			
	 
	 
	 

IN WITNESS WHEREOF, Buyer has caused this Delivery Certificate to be executed in its name as of the date first written above.
	
		
	 
	CROSS OCEAN AVIATION FUND 1 (INTL) 5 DAC, as Buyer
By:   /s/ David O’Brien    
   Name: David O’Brien 
   Title: Director

	
			
	 
	 
	 

INSURANCES
Section 1.    Insurances.  From Delivery and continuously thereafter for two years following Delivery, Buyer will carry or cause to be carried with respect to each Engine comprehensive aviation legal liability insurance including but not limited to aircraft third party, passenger, baggage, cargo, mail and products liability insurance including without limitation, war risk and allied perils, (I) in an amount of not less than $500,000,000 for any one occurrence and in the aggregate with respect to products liability and (II) which is maintained in effect with insurers of recognized reputation and responsibility.
Buyer will (or, if applicable, will cause any other operator to) obtain and maintain hull all risks insurance (including war risks), with respect to any aircraft upon which any Engine is installed.  This insurance shall contain a waiver of subrogation in favor of Seller Indemnitees.
Section 2.    Terms of Insurance Policies.  Any policies carried in accordance with Section 1 hereof covering each Engine, and any policies taken out in substitution or replacement for any such policies, (i) shall name the Seller Indemnitees and the parties identified below as additional insureds, (but without imposing on any such party liability to pay premiums with respect to such insurance), (ii) shall provide that if the insurers cancel such insurance for any reason whatever, or if the same is allowed to lapse for non-payment of premium or if any material change is made in the insurance which adversely affects the interest of any Seller Indemnitee, such lapse, cancellation or change shall not be effective as to any Seller Indemnitee for thirty days (seven days in the case of war risk and allied perils coverage) after written notice by such insurers of such lapse, cancellation or change, (iii)  shall expressly provide that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were separate policy covering each insured, (iv) provide that the insurers will waive any right to any setoff, recoupment or counterclaim or any other deduction, by attachment or otherwise, (v) be primary and without right of contribution from any insurance which may be carried by any Seller Indemnitees, and (vi) shall otherwise be reasonably acceptable to Seller in light of industry norms.  The insurance required by this Exhibit C may be subject to any limits prevailing at the time in the aviation insurance marketplace (for example, on the date of this Agreement, AVN 67B).
On or before the Delivery Date for the Engines, the Buyer shall provide to Seller certificates of insurance evidencing the coverage required pursuant to this Exhibit and, if so requested by Seller, shall provide to Seller, as applicable, updated certificates of insurance upon each renewal of the coverage required pursuant to this Exhibit C.

The following parties shall be included as additional insureds along with other additional insureds required under this Agreement:  Celestial Aviation Trading 22 Limited, GECAS Technical Services Limited, GE Capital Aviation Funding, GE Capital Aviation Services Limited, GE Capital Aviation Services LLC, General Electric Company, GE Capital Global Holdings LLC and GE Capital US Holdings Inc.

	
			
	 
	 
	 

TIE-IN LETTER

November 8, 2019

RE: One (1) used model V2524-A5 model aircraft engine bearing manufacturer's serial number V 11255 and associated components ("Engine").

Dear Sir/Madam:

This letter will confirm that the above referenced Engine was owned by Wilmington Trust SP Services (Dublin) Ltd. not in its individual capacity but solely as Trustee for Aircraft 32A-1758 (Ireland) Trust, with the Engine leased to Companhia De Transportes Aereos Air Macau, SARL ("Lessee") under a lease agreement of that certain Airbus A319-100 aircraft bearing manufacturer's serial number 1758 and Macau registration B­MAK. Subsequently, the Engine was sold by Wilmington Trust SP Services (Dublin) Ltd. not in its individual capacity but solely as Trustee for Aircraft 32A-1758 (Ireland) Trust, to Contrail Aviation Leasing, LLC as buyer, on September 17, 2018 and returned off lease by Lessee to Contrail Aviation Leasing, LLC on August 30, 2019 with the following final engine times: TSN: 37,596 CSN: 21,445. The Engine was sold by Contrail Aviation Leasing to Contrail Aviation Support, LLC on November 8, 2019.

To the best of our knowledge, (i) the Engine has not been involved in an incident or accident; (ii) the Engine was not operated by any government or military source; (iii) the Engine was not subjected to extreme heat or stress as in engine failure, fire, incident or accident; and (iv) that the Engine was not immersed in salt water or otherwise exposed to corrosive agents outside normal operation.

Sincerely,
Contrail Aviation Leasing, LLC

By:  /s/ Joseph G. Kuhn         

Name:  Joseph G. Kuhn

Title:    CEO

	
			
	 
	 
	 

TIE-IN LETTER

November 8, 2019

RE: One (1) used model V2527-A5 model aircraft engine bearing manufacturer's serial number V 10543 and associated components ("Engine").
Dear Sir/Madam:
This letter will confirm that the above referenced Engine was previously owned by WWTAI Airopco 1 Bermuda Ltd., which sold the Engine to Contrail Aviation Support, LLC as buyer, on February 25, 2019. Contrail Aviation Support, LLC leased the Engine to Companhia De Transportes Aereos Air Macau, SARL ("Lessee") on or about May 29, 2019. Lessee subsequently returned of the Engine to Contrail on August 30, 2019 with the following final engine times: TSN: 52,626 CSN: 26,725.
To the best of our knowledge, (i) the Engine has not been involved in an incident or accident; (ii) the Engine was not operated by any government or military source; (iii) the Engine was not subjected to extreme heat or stress as in engine failure, fire, incident or accident; and (iv) that the Engine was not immersed in salt water or otherwise exposed to corrosive agents outside normal operation.
Sincerely,
Contrail Aviation Support, LLC

		
	By: /s/ Joseph G. Kuhn
	 

Name:  Joseph G. Kuhn
Title:   CEO

18221713v1

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