Document:

Severance and Retention Agreement

 Exhibit 10.5 
 SEVERANCE AND RETENTION AGREEMENT 
 THIS SEVERANCE AND RETENTION AGREEMENT (this
“Agreement”) is made effective as of August 15, 2008, by and between DPWN Holdings (USA), Inc., an Ohio corporation (“DPWN Holdings”), and ABX Air, Inc., a Delaware corporation (“ABX Air”).

 RECITALS 
 A. DHL Network
Operations (USA), Inc., an Ohio corporation and the successor to Airborne, Inc. (“Network Operations”), and ABX Air are parties to that certain ACMI Service Agreement, dated as of August 15, 2003, as amended and supplemented
(the “ACMI Agreement”), pursuant to which ABX Air provides certain air transportation services to Network Operations on an “ACMI” basis (i.e., by providing aircraft, crew, maintenance and insurance) to support
Network Operation’s operations in the U.S. and between the U.S. and elsewhere in North America or internationally. 
 B. DHL Express
(USA), Inc., an Ohio corporation and the successor to Airborne, Inc. (“DHL Express”), and ABX Air are parties to that certain Hub and Line-Haul Services Agreement, dated as of August 15, 2003, as amended and supplemented (the
“HLA Agreement”), pursuant to which ABX Air provides DHL Express with certain hub, line-haul and maintenance services at its sorting facilities to support DHL Express’s operations in the U.S. 
 C. DPWN Holdings is the parent of Network Operations and DHL Express, which entities shall hereinafter be collectively referred to as
“DHL” from time to time. 
 D. On May 28, 2008, Deutsche Post World Net announced a plan to restructure its DHL U.S.
business by greatly reducing costs. Among other measures, it is pursuing a definitive agreement with United Parcel Service Inc. (“UPS”) pursuant to which UPS will provide air uplift and other services for DHL’s U.S. domestic
and international shipments within North America that is currently provided by ABX Air, among other providers (such definitive agreement, the “UPS Contract”). 
 E. Notwithstanding anything to the contrary in the HLA Agreement and/or the ACMI Agreement, respectively, each of which remains in full force and effect,
the parties agree to the following terms and conditions in order to (i) provide for ABX Air’s employees in the event their employment is terminated in connection with; and (ii) encourage ABX Air’s employees to remain in the
employ of, and maintain their current level of performance for, ABX Air as it endeavors to maintain service to DHL arising from; DHL’s implementation of its US restructuring plan and/or the UPS Contract. 
 F. The Parties signed a Term Sheet on Friday, August 1, 2008, subject to final confirmation and documentation, the substantive terms of which are
intended to be covered by this document as it relates to all employees of ABX Air under the ACMI Agreement and HLA Agreement, respectively. 
  

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 NOW THEREFORE, in consideration of the foregoing premises, mutual covenants, agreements, terms,
conditions, and consideration herein set forth, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: 
 1. DHL hereby agrees to reimburse or pay to ABX Air the costs associated with the following severance, retention and productivity bonus arrangements for
ABX Air’s employees performing services under the ACMI Agreement and HLA Agreement: 
 (i) DHL hereby agrees to reimburse the costs
incurred by ABX Air for a severance plan effective as of July 1, 2008, covering its employees (other than pilots, ABX Air’s senior executive management at the Vice President level or above, casuals, third party mechanics, temporary or
contract workers, employees at regional hub facilities, and day time sort employees) that provide services under either the HLA Agreement or the ACMI Agreement (such employees, the “Covered Employees”). The severance plan shall
provide for prompt payment following the termination without cause (except as provided for in section 1(vii)(D) below) of any Covered Employee’s employment by ABX Air for the reasons specified in clauses (A) through (C) below of a
severance amount calculated based on the following: (A) for Covered Employees terminated as a result of DHL’s restructuring of its U.S. business, 2 weeks’ base salary for such Covered Employees for the first full year worked by each
such employee, and 1 week’s base salary for each full year worked thereafter, in each case from his or her date of hire, to be paid every two weeks until exhausted (the number of weeks of base salary that a Covered Employee is eligible for is
hereinafter referred to as the “Severance Period”); (B) for Covered Employees, contingent upon the consummation of the UPS Contract, a retention bonus (the “Retention Bonus”) of 2 weeks’ base salary for
such Covered Employee for every full calendar month worked after July 1, 2008 and prior to the earlier of (1) the effective date of any termination of a Covered Employee arising as a result of the implementation of the UPS Contract, and
(2) the effective date of termination of the HLA Agreement or the ACMI Agreement, as applicable, with a maximum payment to each Covered Employee pursuant to this clause (B) equal to 26 weeks’ base salary to be paid as a lump sum; and
(C) for Covered Employees terminated as a result of DHL’s restructuring of its U.S. business or the consummation of the UPS Contract, any and all accrued but unused vacation time to be paid as a lump sum; provided, however,
that any carryover of vacation not to commence until the date on which the UPS Contract is consummated (such severance and retention plan, the “Non-Pilot Employees Severance and Retention Plan”). For purposes of calculating average
hours worked by a Covered Employee to determine their weekly pay for severance purposes, an average of the hours per week worked during the period of July 1, 2007 through July 1, 2008 is to be used. ABX Air will provide 60-days advance
notice to its employees stationed in Wilmington, Ohio (ILN) prior to the effective date of severance and no less than a two-week notice period or pay in lieu thereof for those employees stationed at other locations. 
 (ii) DHL hereby agrees to the adoption of a productivity bonus plan for Covered Employees (including, for purposes of this Section 1(ii), day time
sort employees) that provides, beginning with the first full calendar month after July 1, 2008, for a monthly payment, promptly following the end of each calendar month, of $150 (less any applicable withholding taxes) for each 

  

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Covered Employee that has a perfect work attendance record (excluding any approved vacation time) during the applicable calendar month (such productivity
bonus plan, the “Non-Pilot Employees Productivity Bonus Plan” and, together with the Non-Pilot Employees Severance and Retention Plan, the “Non-Pilot Plans”). If DHL does not enter into the UPS Contract, the
Non-Pilot Employees Productivity Bonus Plan may be cancelled at the conclusion of the month that DHL formally notifies ABX Air that the discussions with UPS have been terminated without the execution of a contract. 
 (iii) DHL hereby agrees to reimburse ABX Air for the same portion of any health insurance COBRA premiums (the “HIP Reimbursement
Obligation”) that ABX Air pays for employed Covered Employees for each Covered Employee whose employment is terminated as a result of DHL’s restructuring of its U.S. business or consummation of the UPS Contract, up to a maximum number
of weeks equal to the length of the applicable Covered Employee’s Severance Period calculated pursuant to Section (1)(i)(A) above; provided that ABX Air will not increase, from its practice as of the date hereof, the portion of any
health insurance COBRA premiums, other than normal annual rate increases, that ABX Air pays for employed Covered Employees without the prior written agreement of DHL (such agreement not to be unreasonably withheld or delayed). 
 (iv) The Parties hereby agree that any increase in compensation costs directly attributable to the adoption of the Non-Pilot Plans, the Pilots Plan (as
defined in Section 2 below) or the HIP Reimbursement Obligation shall not be subject to mark-up nor included in calculating labor cost increase limitations under the ACMI Agreement or HLA Agreement. (v) DHL shall reimburse ABX Air,
promptly upon receipt of a separate invoice with respect thereto, for the costs incurred by ABX Air under the Non-Pilot Plans or in connection with the HIP Reimbursement Obligation; provided, however, except as may be otherwise
provided herein, DHL’s obligation to reimburse ABX Air for costs associated with the Retention Bonus are contingent upon DHL entering into a contract with UPS. 
 (vi) For certain employees, identified in Exhibit 1 of this Agreement, the parties agree to pay the Retention Bonus on a monthly basis rather than the lump sum set forth in paragraph 1(i)(B) above. DHL shall reimburse
ABX Air, promptly upon receipt of a separate invoice for those costs. These payments are being made in lieu of the lump sum Retention Bonus and are not contingent upon the consummation of the UPS Contract. At the conclusion of the month that DHL
formally notifies ABX in writing that discussions with UPS have been terminated without the execution of a contract, these payments shall stop. 
 (vii) For the avoidance of doubt: (A) the term “Covered Employees” does not include: any employee of ABX Air who is terminated for reasons other than those arising from DHL’s restructuring of its U.S. business and
consummation of the UPS Contract, members of ABX Air’s senior executive management at the Vice President level or above, pilots, third-party maintenance mechanics, any casual or volunteer employees, any temporary or contract worker employees,
employees at a regional hub facility, and, other than for purposes of Section 1(ii), day time sort employees; (B) for purposes of calculating the 

  

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severance obligations owed to a Covered Employee or Covered Pilot (as defined below), such employee’s most recent hire date will be used in those cases
where the employee has previously received a severance benefit from ABX Air; (C) Covered Employees or Covered Pilots who may have dual employment either within ABX Air and its affiliates or at ABX Air and DHL will not be allowed to pyramid
severance benefits, but will be allowed credit for the hours worked in both positions; and (D) Covered Employees do not need to be terminated from employment to receive the retention benefit described in section 1(i)(B) if all other
conditions (DHL’s consummation of the UPS Contract and satisfactory performance by the Covered Employee up through and including a predetermined end date for their employment) are met. Provided further, at the conclusion of the month that DHL
formally notifies ABX Air in writing that discussions with UPS have been terminated without execution of a contract, the accumulation of retention benefits shall stop. 
 (viii) Attached hereto as Exhibit 2 is a sample of a list (by job title or description, together with the number of employees covered by such title or description) of the Covered Employees that ABX Air will provide to
DHL on a monthly basis, within 10 business days after the end of each month, reflecting the position, pay rate and hire date. 
 2. Establishment of a Pilot Plan DHL hereby agrees to provide to ABX Air an aggregate
amount of up to $75 million in order for ABX Air to establish a plan for the Covered Pilots (the “Pilots Plan”), the terms of which will be determined by ABX Air and the Covered Pilots, to address any employee severance, retention
and/or other issues arising from DHL’s restructuring of its U.S. business, including (i) DHL’s termination of all or substantially all of ABX Air’s DC-9 aircraft under the ACMI Agreement, (ii) the elimination of out-based
stations/locations, and (iii) and the implementation of the UPS Contract. “Covered Pilots” shall mean any flight crewmember on the seniority list under the collective bargaining agreement between ABX Air and the labor union for
its flight crewmembers. ABX Air is not limited in any way in negotiating or fashioning an agreement with the labor union other than as limited by the $75 million aggregate amount. Once finalized, DHL shall, promptly following receipt of a copy of
the Pilots Plan/agreement, pay to ABX Air the amount required under the Pilots Plan, up to $75 million, for distribution in accordance therewith.***

 3. Obligation with Respect to Day Time Sort Employees. Except as set forth in Section 1(ii), the parties understand and agree
that day time sort employees are not Covered Employees hereunder and are not entitled to the Retention Bonus provided for in Section 1(i)(B) above, and that the terms of the HLA Agreement, as in effect on the date hereof, will continue to
govern DHL’s obligations with respect to severance or similar amounts for such employees, provided, however, that any such employee will be entitled to the severance set forth in 1(i)(A) above if such employee is terminated as a
result of DHL’s implementation of the UPS Contract. In the event that, as a result of the implementation of the UPS Contract, DHL eliminates, in-sources (without hiring the employees of ABX Air that provide the day time sort services) or
terminates, or permits the expiration of, the HLA Agreement and out-sources (to a party other than ABX Air, without causing the employees of ABX Air that provide the day time sort services to be hired by the new service provider) the day time sort
operations, ABX Air will be entitled to adopt, effective as of the date on which 
  

	 ***
	 This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been filed
separately with the SEC. 

  

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DHL provides ABX Air with written notice of its intention to either eliminate, in-source or move such work, and DHL will reimburse ABX Air for the costs
associated therewith, a severance and retention program that is comparable in the aggregate to the benefits provided by the Non-Pilot Plans and the HIP Reimbursement Obligation, which program will provide for an accrual of such benefits to commence
on the date of DHL’s written notice. 
 4. Transition Services. DHL and ABX Air agree to share equally the costs of providing
transition services to employees affected by DHL’s restructuring of its U.S. business prior to the consummation of the UPS Contract. Should DHL enter into the UPS Contract, DHL will be responsible for all of the costs of the transition
services. ABX Air shall consult with DHL in devising its plan and the parties shall engage in good faith discussions to fashion the services in a cost efficient manner that is acceptable to DHL and also meets the needs of ABX Air and its employees
due to all of the circumstances. Thereafter, an estimate of those costs shall be provided to DHL on a monthly basis for its review and approval. Such approval shall not be unreasonably withheld and will be provided promptly and in a manner that
ensures that the transition services are not disrupted. Any disputes shall be resolved by the heads of each respective company’s Human Resources departments. The parties further agree to the extent practicable and reasonable under all of the
circumstances to work with one another and the various agencies to make efficient use of the services and resources that may be offered and provided by the federal, state and local governmental authorities for those employees that are adversely
affected by DHL’s implementation of the UPS Contract. 
 5. Conflict. In the event of any ambiguity or conflict between this
Agreement and either the ACMI Agreement or the HLA Agreement relating solely to DHL’s obligations to reimburse or otherwise fund any severance or retention incurred by ABX, the terms of this Agreement shall control. 
 6. Time is of the essence. Time is of the essence to this Agreement 
 7. Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns. No party to this
Agreement may assign its rights or delegate its obligations under this Agreement to any other person, without the express prior written consent of the other party hereto (such consent not to be unreasonably withheld); provided that DPWN
Holdings, Network Operations and DHL Express may assign this Agreement to any affiliate of DPWN Holdings as long as at least 30 days written notice is provided to ABX Air, the obligations of such assignee are guaranteed by DPWN Holdings, and ABX
grants its consent to such assignment (such consent not to be unreasonably withheld). Any such assignment or transfer made without the prior written consent of the other party hereto shall be null and void. 
 8. Execution in Counterparts. To facilitate execution, this Agreement may be executed in any number of counterparts (including by facsimile
transmission), each of which shall be deemed to be an original, but all of which together shall constitute one binding agreement on the parties, notwithstanding that not all parties are signatories to the same counterpart. 
  

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 9. Headings; Certain Construction Rules. The section headings contained in this Agreement are for
reference purposes only and do not form a part of this Agreement and do not in any way modify, interpret or construe the intentions of the parties. The words “hereof,” “herein” and “hereunder” and words of similar
import referring to this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall
be deemed to be followed by the words “without limitation.” Unless otherwise specifically provided for herein, the term “or” shall not be deemed to be exclusive. 
 10. Notices. All notices, demands, consents, approvals or other communications required or permitted under this Agreement shall be in writing and
shall be deemed to have been duly given to a party if delivered in person or sent by overnight delivery (providing proof of delivery) to the party at the addresses set forth below on the date of delivery, or if by facsimile or electronic mail, upon
confirmation of receipt. 
 If to Network Operations or DHL Express: 
 c/o DPWN Holdings (USA), Inc. 
 1200 South
Pine Island Road 
 Plantation, Florida 33324 
 Attention: Ken Allen - CEO 
 Facsimile: (954) 888 7310 
 Email:                      
 with a copy to: 
 Jon E. Olin, 
 Executive Vice President and General Counsel 
 DPWN Holdings (USA), Inc. 
 1200 South Pine Island Road 
 Plantation, Florida 33324 
 Facsimile:
(954) 888-7159 
 Email: Jon.Olin@dhl.com 
 If to ABX Air: 
 ABX Air, Inc. 
 145 Hunter Drive 
 Wilmington, Ohio 45177 
 Attention: Joseph C. Hete, Chief Executive Officer 
 Facsimile: (937) 382-2452 
 Email: Joe.Hete@atsginc.com 
 with a copy to: 
 John Starkovich, VP, Human
Resources 
 ABX Air, Inc. 
 145
Hunter Drive 
 Wilmington, Ohio 45177 
 Facsimile: (937) 382-2452 
 Email: John.Starkovich@abxair.com 
  

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 11. Entire Agreement. This Agreement constitutes the entire agreement between the parties and
supersedes any and all prior and contemporaneous agreements, memoranda, arrangements and understandings, both written and oral, between the parties with respect to the subject matter hereof. No representation, warranty, promise inducement or
statement of intention has been made by either party which is not contained in this Agreement and no party shall be bound by, or be liable for, any alleged representation, promise, inducement or statement of intention not contained herein or
therein. 
 12. Amendments; Waivers. Subject to applicable law, this Agreement may only be amended pursuant to a written agreement
executed by all parties, and no waiver of compliance with any provision or condition of this Agreement and no consent provided for in this Agreement shall be effective unless evidenced by a written instrument executed by the party against whom such
waiver or consent is to be effective. No waiver of any term or provision of this Agreement shall be construed as a further or continuing waiver of such term or provision or any other term or provision. 
 13. Further Assurances. Each party hereto shall, at its own expense (except as otherwise provided herein), take such other actions and execute and
deliver such documents as may be reasonably necessary to effectuate the purpose of this Agreement. 
 14. Severability. If any
provision or any part of any provision of this Agreement is void or unenforceable for any reason whatsoever, then such provision shall be stricken and of no force and effect. However, unless such stricken provision goes to the essence of the
consideration bargained for by a party, the remaining provisions of this Agreement shall continue in full force and effect and, to the extent required, shall be modified to preserve their validity. Upon such determination that any term or other
provision or any part of any provision is void or unenforceable, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the
transactions contemplated hereby are fulfilled to the fullest extent possible. 
 15. No Third-Party Rights. Nothing in this
Agreement, whether express or implied, is intended to or shall confer any rights, benefits or remedies under or by reason of this Agreement on any persons other than the parties and their respective successors and permitted assigns, nor is anything
in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any party, nor shall any provisions give any third persons any right or subrogation over or action against any party. 
 16. Specific Performance. The parties agree that irreparable damage would occur in the event any of the provisions of this Agreement were not
performed in accordance with the terms hereof and that the parties are entitled to specific performance of the terms hereof in addition to any other remedies at law or in equity. 
  

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 17. Governing Law. This Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of New York without regard to New York’s conflicts of laws principles. 
 18. Confidentiality. Except
as otherwise provided in this provision, DPWN Holdings &/or DHL Express USA, Inc. and ABX Air each covenant and agree that except as required by the provisions of any legal requirement for which it is obligated regarding its ordinary business
operations, it shall use commercially reasonable efforts not to disclose to any person or entity, with the exception of affiliates and outside legal and financial advisors, the terms of this Agreement. The parties acknowledge that ABX Air’s
parent corporation may need to file and disclose the existence and terms of this Agreement with the Securities and Exchange Commission and will cooperate in seeking confidential treatment of such portions hereof as may be agreed to by the parties.
Additionally, DPWN &/or DHL Express USA, Inc. and ABX Air may make oral and written statements for public relations and employee relations purposes disclosing that this agreement has been reached and generally describing its terms provided that
such written statements shall be subject to prior written approval of the other party and all oral statements shall be limited in scope to the information contained in the written document that was approved by the other party. The parties have
discussed and recognize certain limitations that may arise in their effort to fully comply with this provision but shall exert their best efforts to meet its spirit and intent. 
 [Signatures on the following page.] 
  

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 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized
representatives as of the day and year first above written. 
  

			
	DPWN HOLDINGS (USA), INC.
		
	By:	 	 /s/ Tom Snowberger

	Name:	 	Tom Snowberger
	Title:	 	Sr VP HR
	
	ABX AIR, INC.
		
	By:	 	 /s/ John Graber

	Name:	 	John Graber
	Title:	 	President

  

 9Agreement dated September 9, 2008

 Exhibit 10.6 
 ISRAEL AEROSPACE INDUSTRIES LTD. 
 Ben Gurion International Airport 
 70100 Israel 
 September 9, 2008

 Cargo Aircraft Management, Inc. 
 7100 T.P.C. Drive

 Suite 100 
 Orlando Florida 32822, USA 
  

	Attention:	Mr. Bill Tarpley
 Chief Operating Officer 

 Re:        Interim Agreement 
 Gentlemen: 
 This letter, when countersigned by Cargo Aircraft Management, Inc. (“CAM”), a duly organized and validly existing Florida corporation
(“CAM”), will constitute a binding agreement (this “Interim Agreement”) between Israel Aerospace Industries, Ltd. (“IAI”) and CAM, as follows: 
  

	1.	Introduction  

  

	 	(a)	IAI and CAM signed a Letter of Intent on July 31, 2008 (the “LOI”), pursuant to which, generally, CAM agreed to deliver fourteen (14) B767-200 Package Carrier
(“PC”) aircraft owned in whole or in part by CAM, its parent, subsidiaries or affiliates (“PC Aircraft”) to IAI for modification from PC configuration to special freighter configuration (“SF”), in accordance with the
Aircraft Induction Schedule attached hereto as Exhibit A and IAI agreed to perform such modifications in accordance with the requirements of the paragraph below titled “Performance of Services”. CAM also agreed to fund IAI’s
non-recurring expenses (“NRE”), in the amount of $7.5 million to be allocated over the first seven (7) conversions of CAM aircraft. 

  

	 	 (b)
	 The first CAM aircraft is due for induction at IAI on or about September 1st, 2008. 

  

	 	(c)	The parties had intended to negotiate and sign a conversion modification agreement with a full set of terms and conditions prior to August 15, 2008. 

 

	 	(d)	The parties now realize that they will not be able to accomplish that task in time for the induction of the first CAM aircraft to occur on schedule. 

  

 1 

	 	(e)	Accordingly, IAI and CAM are entering into this Interim Agreement, with Air Transport Services Group, Inc. acting solely as guarantor of CAM’s financial obligations hereunder.

  

	2.	General Terms 

  

			
	Monetary Amounts:	  	All monetary amounts described in this Interim Agreement are expressed in US 2008 Dollars and subject to escalation per the 767 Agreement (as that term is defined below).
		
	Guarantor:	  	Air Transport Services Group, Inc. will act as guarantor solely for CAM’s financial obligations under the Definitive Agreement.
		
	14 Aircraft Order:	  	CAM will induct the first fourteen (14) PC Aircraft for modification to SF configuration by IAI. Additional PC Aircraft may be added to the Agreement at CAM’s discretion. Pricing will be
adjusted -/+ in accordance with Exhibit B for the total number of PC Aircraft inducted by CAM during the program.
		
	Performance of Services:	  	  
 The Basic Modification and all services performed by IAI and/or its
subcontractors or agents under this Interim Agreement or the Definitive Agreement, whichever is in effect, will be performed in accordance with all of the following that are applicable and in the following order of priority:

		
		  	 •     FAA standards, directives and regulations that would permit certification of the PC Aircraft under FAR
Part 121 or the equivalent;

		
		  	 •     Manufacturer’s modification, repair and overhaul standards, recommendations, instructions and
license requirements in effect during the performance of the Basic Modification and any other IAI services;

		
		  	 •     Technical Specification No. P2S-00-00-98368 Rev. A, dated July 20, 2008 (the
“Specification”);

		
		  	 •     IAI shop practices and procedures in accordance with IAI’s FAR Part 145 certifications or any
other FAA approved procedures for transport aircraft, as applicable, to the extent not inconsistent with the requirements above; and

		
		  	 •     CAM general maintenance manual, policies and procedures.

		
	 Basic Modification
 Price:
	  	  
 CAM will pay IAI $*** for each of the fourteen (14) PC Aircraft modified to
SF configuration, which such amount includes a $*** per PC Aircraft reduction for each of the fourteen (14) PC Aircraft inducted for SF modification. The

	
	*** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been filed separately with the SEC.

  

 2 

			
		  	Basic Modification Price includes timely Redelivery of the Aircraft converted to SF configuration, a customized SF structural kit properly installed, installation, labor, and attainment of a
valid FAA Supplemental Type Certificate (“STC”) for such PC to SF configuration, engine loading and perishable capability. The Basic Modification Price does not include the NRE and the options listed in Exhibit C. The Parties agree that
the Basic Modification Price assumes that CAM will induct fourteen (14) PC Aircraft for modification to SF configuration.
		
	Non-Recurring	  	
	Engineering:	  	In addition to the Basic Modification Price, CAM will pay IAI a total of $*** for all NRE related to the PC to SF program except for the flush lavatory. The Parties acknowledge that ABX Air,
Inc. (“ABX”) has previously paid $*** to IAI of the total NRE, leaving a balance of $***. The $*** NRE balance will be paid by CAM in seven installments, as provided in Table 1 below, as part of the Purchase Price for the first seven (7)
PC Aircraft inducted. As consideration for paying the outstanding NRE in installments over the first seven (7) PC Aircraft inducted, CAM will receive a $*** credit for cost of money against each NRE payment for each of the first seven (7) PC
Aircraft it inducts as shown by Table 1 below.
		
		  	Table 1

  

							
	 	  	NRE	  	W/credit
	 Aircraft 1
	  	$	***	  	$	***
	 Aircraft 2
	  	$	***	  	$	***
	 Aircraft 3
	  	$	***	  	$	***
	 Aircraft 4
	  	$	***	  	$	***
	 Aircraft 5
	  	$	***	  	$	***
	 Aircraft 6
	  	$	***	  	$	***
	 Aircraft 7
	  	$	***	  	$	***

  

			
		  	If CAM cancels the program for convenience prior to the seventh (7th) PC Aircraft induction,
CAM will pay IAI the difference between $*** and the NRE amounts paid by CAM to the date of the cancellation within thirty (30) days.
		
	Additional NRE:	  	There will be an additional NRE charge of $*** for the flush lavatory design.
		
	CDR Payment:	  	As part of the NRE and not in addition to it, if CAM cancels the PC to SF program prior to the induction of the Prototype or, if CAM fails to induct the Prototype on or before September 30, 2008
through no act, omission or delay by IAI and there is no

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 3 

			
		  	Permitted Delay, ABX shall pay to IAI the sum of $***, as per the CDR Letter (as that term is defined below).
		
	Weight Upgrades:	  	In addition to the Basic Modification Price, CAM may choose to purchase weight upgrades for the PC Aircraft at $*** per pound as described in Exhibit C.
		
	Mechanic’s Lien:	  	CAM grants IAI the right to place a mechanic’s lien on each of CAM’s PC Aircraft between induction and Redelivery of such PC Aircraft (which may be more than one at a time). Lien
removal must occur no later than the time of Redelivery. Failure to remove a lien timely will void IAI’s right to place a lien against any future PC Aircraft. The value of the lien will be equal to or less than the value of the Basic
Modification Price for such PC Aircraft plus the outstanding and unpaid NRE owed by CAM at the time the lien is placed. Provided CAM is not prevented from doing so through any act or omission of IAI, its approved subcontractors or any governmental
or agency authority, CAM agrees that it will have at least one Aircraft inducted for SF modification at IAI’s Tel Aviv facility or a facility of a mutually approved subcontractor of IAI, if any, at all times while this Interim Agreement or the
Definitive Agreement, whichever is in force, is in effect.
		
	Total Purchase	  	
	Price:	  	The Total Purchase Price for each Aircraft, which such amount includes the Basic Modification Price as reduced and the outstanding NRE for each of the seven (7) PC Aircraft properly modified to
SF configuration, is as follows:
		
		  	Table 2

  

							
	 Aircraft No.
	  	Total Purchase Price
without NRE Credit	  	Total Purchase Price
with NRE Credit
	 A/C 1
	  	$	***	  	$	***
	 A/C 2
	  	$	***	  	$	***
	 A/C 3
	  	$	***	  	$	***
	 A/C 4
	  	$	***	  	$	***
	 A/C 5
	  	$	***	  	$	***
	 A/C 6
	  	$	***	  	$	***
	 A/C 7
	  	$	***	  	$	***
	 A/C 8
	  	$	***	  	$	***
	 A/C 9
	  	$	***	  	$	***
	 A/C 10
	  	$	***	  	$	***
	 A/C 11
	  	$	***	  	$	***
	 A/C 12
	  	$	***	  	$	***
	 A/C 13
	  	$	***	  	$	***
	 A/C 14
	  	$	***	  	$	***

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 4 

			
		  	The Total Purchase Price will be paid in accordance with the Milestone Payment Schedule below.
		
	Milestone	  	
	Payments:	  	CAM will pay IAI ***% of the Total Purchase Price and for maintenance and any options as shown in Exhibit C for the SF modification of a PC Aircraft at the time such PC Aircraft is inducted
for modification. The remaining ***% of the Total Purchase Price, maintenance, and any options as shown in Exhibit C will be due to IAI immediately prior to Redelivery of such SF modified PC Aircraft.
		
	Turn-time (“TAT”):	  	The SF modification of the PC Aircraft will be properly completed and Redelivered to CAM in accordance with the TAT schedule in Exhibit A.
		
	IAI Damages:	  	For any PC Aircraft that is not Redelivered on the date shown on the PC2SF Induction Schedule attached hereto as Exhibit A or any induction schedule that has been modified pursuant to this
paragraph (each, the “Induction Schedule”), (a “Late PC Aircraft”), IAI will pay CAM $*** per day, not subject to escalation or cap, as liquidated damages and not as a penalty or forfeiture (it being agreed by the parties that
CAM will suffer actual damages in such event but that such damages are impossible to calculate with any acceptable reliability), for each day that such Late PC Aircraft is late and not Redelivered to CAM. Without limiting CAM’s right to the
liquidated damages as described above, upon any such late Redelivery, the Induction Schedule of the remaining unmodified PC Aircraft shall be modified in a signed writing between the Parties so that the induction and Redelivery days of the TAT of
the next unmodified PC Aircraft on the Induction Schedule, and the TATs for all succeeding unmodified PC Aircraft, shall be moved forward the same number of days that the Late PC Aircraft was late (the “Day-for-Day Formula”); provided,
however, that, (1) the TAT of any PC Aircraft that shall have been inducted for conversion at the time such schedule modification is to take place, shall not be so adjusted; (2) the parties shall agree on the induction dates for the first PC
Aircraft and the second PC Aircraft to undergo conversion pursuant to this Interim Agreement; (3) the number of days allotted for TAT, as shown in Exhibit A is not extended as a result of the application of the Day-for-Day Formula; and (4)
generally, the parties shall agree to each such re-scheduling but, if they fail to so agree, the Day-for-Day Formula shall be applied. Notwithstanding the foregoing, it shall be an IAI Permitted Delay (and the liquidated damage charge per day shall
be tolled for the period of such Permitted Delay), if the FAA or CAAI rejects any of the ABX PC STC reports and data that will serve

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 5 

			
		  	as a basis for the STC to be obtained by IAI, and such rejection by the FAA or the CAAI is the only cause of the delay.
		
	 Prototype Grace
 Period:
	  	  
 The Prototype will be given a 90-day grace period beyond the 272 day TAT
(not including IAI observed holidays, IAI Permitted Delays, Work-scope Change Orders, and painting), without damages only if the delay of Redelivery of the Prototype is due solely to the FAA or CAAI and not due to any act or omission of IAI, its
subcontractor or any other Person. IAI will prepare a detailed mutually agreed on schedule for submission of all documents and data for the CAAI and FAA to obtain approval for the PC to SF STC and such schedule will be adhered to by IAI and will
become a part of the Definitive Agreement. Except for the Prototype, there will be no grace period for the above TAT. After the 90-day grace period for the Prototype, IAI will pay CAM $*** per day that such PC Aircraft is late and not Redelivered to
CAM regardless of the reason for late Redelivery, except (1) any applicable extensions of TAT and/or IAI Permitted Delays, as defined in the 767 Agreement, and (2) if the delay is solely attributable to CAM.

		
	CAM Damages:	  	If CAM cancels the PC to SF program for convenience prior to completion of all 14 PC Aircraft, and such cancellation is not due to any act or omission of IAI in breach of this Interim
Agreement or the Definitive Agreement, whichever shall be in effect, or any failure to timely obtain the FAA STC approval for the SF modification of the PC Aircraft, CAM will be subject to the following damages, which such damages will be paid to
IAI 30 days after invoicing from IAI. The damages listed below are not subject to any escalation and are capped as provided below.
		
		  	 •     CAM will pay IAI $*** for the SF cargo modification kit associated with each PC Aircraft cancelled for
modification if such PC Aircraft is cancelled within 12 months of the scheduled date of induction for SF modification, as amended from time to time between the Parties, provided that CAM is not obligated to purchase more than two (2) SF cargo
modification kits in total. Further, CAM will not owe IAI for SF cargo modification kits for PC Aircraft cancelled more than 12 months from such PC Aircraft’s scheduled induction date, as amended from time to time between the Parties. IAI
agrees to re-purchase for $*** all such kits purchased by CAM under this provision: (1) for any new agreement entered into by IAI or any joint venture or affiliate of IAI, for the SF modification of B767-200 or B767-300 aircraft; and (2) for any
current B767-200 or B767-300

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 6 

			
		  	 •     aircraft SF modification customer with an induction scheduled more than 12 months from the date CAM
purchases such SF cargo modification kit(s) from IAI. All SF cargo modification kits purchased by CAM under this provision will be stored and maintained by IAI and risk of loss of the kit(s) will remain with IAI. Title to and all ownership rights in
CAM-purchased SF cargo modification kit(s) purchased under this provision will remain with CAM until repurchased by IAI in accordance with the requirements hereunder. Payment for cargo modification kits purchased or re-purchased under this provision
will be made within thirty (30) days of purchase by CAM or IAI, as applicable.

		
		  	 •     In addition, CAM will pay IAI the price of the cargo loading system in accordance with Exhibit C for all
PC Aircraft CAM cancels that are within six months of such PC Aircraft’s scheduled induction date, as amended from time to time by the Parties, provided CAM approved IAI’s ordering the cargo loading system before it was ordered and IAI
actually ordered such cargo loading system. IAI agrees to repurchase from CAM for an amount equal to the price paid by CAM all such cargo loading systems purchased by CAM under this provision for the next B767-200 aircraft inducted for SF
configuration, provided that the CLS purchased by CAM is (a) required as SFE by the customer of the next B767-200 conversion and (b) in the configuration as required by the new customer, until all the cargo loading systems purchased by CAM
under this provision have been repurchased from CAM. All cargo loading systems purchased by CAM under this provision will be stored and maintained by IAI and risk of loss of the kits will remain with IAI. Title to and all ownership rights in
CAM-purchased cargo loading systems purchased under this provision will remain with CAM until repurchased by IAI in accordance with the requirements hereunder. CAM will not owe IAI for any costs for cargo loading system for PC Aircraft cancelled
more than six (6) months from such PC Aircraft’s scheduled induction date, as amended from time to time between the Parties, or for any cargo loading systems purchased without CAM’s prior

  

 7 

			
		  	 approval. CAM reserves the right to purchase the CLS directly and supply to IAI. In such case, IAl will have no obligation to purchase the CAM-furnished CLS if the
program is cancelled.

		
		  	 •     In addition, to off-set damages to IAI for SF cargo modification kit customization costs, CAM will pay
IAI for each applicable PC Aircraft as follows:

		
		  	 •     If CAM cancels the induction of a PC Aircraft within five months of its scheduled induction date, as
amended from time to time between the Parties, CAM will pay IAI $*** for such PC Aircraft.

		
		  	 •     If CAM cancels the induction of a PC Aircraft within four months of its scheduled induction date, as
amended from time to time, CAM will pay IAI $*** for such PC Aircraft.

		
		  	 •     If CAM cancels the induction of a PC Aircraft within three months of its scheduled induction date, as
amended from time to time, CAM will pay IAI $*** for such PC Aircraft.

		
		  	 •     If CAM cancels the induction of a PC Aircraft within two months of its scheduled induction date, as
amended from time to time, CAM will pay IAI $*** for such PC Aircraft.

		
		  	 •     CAM will not owe IAI for SF cargo kit customization costs for PC Aircraft cancelled more than five months
from the date of such PC Aircraft’s scheduled induction date, as amended from time to time between the Parties.

		
	STC Approval:	  	Without waiving any right CAM may have in equity, contract or law, IAI must have a valid and approved STC for the conversion of the PC Aircraft to SF configuration within 15 months of the
actual induction date of the Prototype, or CAM, at its sole discretion, may cancel this Interim Agreement or the Definitive Agreement, which shall then be in effect, without any further obligation to IAI, including without limitation of any
obligations to pay for the Basic Modification Price or any damages or

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 8 

			
		  	outstanding NRE for any PC Aircraft. If, however, CAM cancels this Interim Agreement or the Definitive Agreement, whichever shall be in effect, for convenience only and not due to any act or
omission of IAI or any failure to obtain the STC in 15 months from the date of induction of the Prototype and less than fourteen (14) PC Aircraft have been inducted for PC to SF modification prior to such cancellation, the Basic Modification Price
for each PC Aircraft will be adjusted upwards in accordance with the pricing chart in Exhibit B. Also, if CAM cancels this Interim Agreement or the Definitive Agreement, whichever shall be in effect, early, any mechanic’s lien still in place
under the terms of this Interim Agreement or the Definitive Agreement, whichever shall be in force, will be removed immediately when all outstanding Total Purchase Prices for the modifications properly performed under this Interim Agreement or the
Definitive Agreement, whichever shall be in force, prior to the date of cancellation, and the outstanding amount of the NRE, are paid in accordance with the terms of this Interim Agreement or the Definitive Agreement, whichever shall be in force,
unless such cancellation is due to failure to obtain the PC to SF STC within 15 months from the scheduled date of the induction of the Prototype or a breach by IAI or its subcontractors of this Interim Agreement or Definitive Agreement, whichever
shall be in force, in which such case all liens must be immediately removed without delay and without any payment by CAM. Notwithstanding the foregoing, it shall be an IAI Permitted Delay up to 15 months from induction of the Prototype Aircraft, if
the FAA or CAAI does not accept any of the ABX PC STC reports and data, which will serve as a basis for the STC to be obtained by IAI and rejection by the FAA or the CAAI is the sole cause of the delay in which case CAM shall not have the right to
cancel this Interim Agreement or the Definitive Agreement, whichever shall be in effect. The Permitted Delay will be calculated as only those days of delay due that are due solely to the FAA or CAAI rejection of ABX PC STC reports and data provided
by ABX that serve as the basis for the STC and not for any delay due to any other reason(s). Nothing in this provision will relieve IAI from its obligation to pay damages for late Redelivery in accordance with this Interim Agreement or the
Definitive Agreement, whichever is then in effect.
		
	Right of First Offer:	  	In the event IAI ceases contracting with third parties for the modification of Boeing 767-200 series aircraft, it will give CAM the right, which such right CAM may assign it to its parent,
affiliate or subsidiaries at CAM’s discretion, to make an offer, and thereafter the right to match any bona fide offer made by another Person, to purchase the intellectual property rights to the Cargo STCs and the PC to SF STC, including all
supporting documentation, pertaining to such series of aircraft, and all modification-related tooling pertaining to such series of aircraft

  

 9 

			
		  	that is incapable of being used on other aircraft, provided, that CAM shall have given to IAI, or included as part of the Definitive Agreement, a list identifying all such parent, affiliate
and subsidiaries as of the date of the Definitive Agreement, and such identified parent, affiliate and subsidiaries shall be the only permitted assignees of such intellectual rights from CAM; and (2) simultaneously with the signing of the Definitive
Agreement, CAM shall deliver to IAI a fully signed Novation Agreement from ABX to CAM, pursuant to which ABX shall have transferred all of its rights (whether by way of first offer, right to match other offers or otherwise) to any of such
intellectual property rights. For purposes of this paragraph, a “Right-of-First-Refusal” means that, upon notice from IAI, CAM shall have not more than five (5) CAM Working Days to match any bona-fide offer made by a third party dealing at
arm’s length, for the purchase of all or any portion of such intellectual property or tooling. IAI shall furnish CAM with reasonable documentation in order to facilitate CAM’s evaluation of such offers.
		
	Assignment Rights:	  	CAM at its discretion may assign this Agreement in whole or in part, including without limitation the right to the modification slot and the Basic Modification Price, to any entity (ies),
party (ies) or person(s) that buy, lease, or has partial or full ownership interest in any PC Aircraft.
		
	 STC NRE Refund
 and Royalty:
	  	***
		
	Confidentiality:	  	The terms and conditions of this Interim Agreement will be held in the strictest of confidence and will not be divulged to any party outside of CAM or IAI and their respective legal counsel,
shareholders, funding sources unless such disclosure is required by applicable law, court order or similar instrument by which the Parties are legally obligated to comply.
		
	Counterparts:	  	This Interim Agreement may be executed in counterparts by exchange of faxed or original signature pages. Each counterpart constitutes an original, but all such counterparts constitute one
instrument.
		
	Law:	  	This Interim Agreement shall be governed by the laws of Ohio, without reference to Ohio’s conflicts of laws principles. The UN Convention on the International Sales of Goods (CISG) shall
not apply to this transaction. All disputes arising out of this Interim Agreement shall be litigated in federal court located in Cincinnati, Ohio, and the Parties hereby consent to the personal jurisdiction of such court and waive any defense based
on inconvenient forum to such venue. The Parties also hereby waive their rights to a jury trial in any such litigation.

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 10 

			
	Legal Fees:	  	Each party shall be responsible for all of its legal fees and its out-of-pocket costs related to this transaction. Counsel for CAM will draft the Agreement for approval by the
Parties.

  

	3.	Indemnification; Insurance and Limitation of Liability 

 During the term of this Interim Agreement: 
 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment
and has been filed separately with the SEC. 
  

 11 

	 	(a)	Except as provided in Section 3(c), CAM shall indemnify, hold harmless and defend IAI (and its officers, directors and subcontractors) from and against any and all claims
(including negligence) for or in respect of any loss, expense, liability, property damage and bodily injury (including death) of whatever kind which CAM (or any officers or director of CAM; and CAM’s subcontractors) may suffer in connection
with or arising out of the Services provided under this Interim Agreement, unless the damage results from the gross negligence or willful misconduct of IAI; 

  

	 	(b)	CAM shall include IAI (and any officer or director of IAI; and IAI’s subcontractors) as additional insureds and/or loss payees under its all risk hull insurance policies and
its liability insurance policies. Without limiting IAI’s indemnity, hold harmless and defense obligations, loss payee status will not apply where IAI is performing any test flight on the PC Aircraft; 

  

	 	(c)	IAI shall indemnify, hold harmless and defend CAM (and its officers, directors and subcontractors) from and against any and all claims for or in respect of any loss, expense,
liability, property damage and bodily injury (including death) of whatever kind which IAI (or any officers or director of IAI; and IAI’s subcontractors) may suffer in connection with or arising out of the Services provided under this Interim
Agreement when such claim or loss: (i) results from the gross negligence or willful misconduct of IAI, its directors, officers, servants, agents or employees; or (ii) in the case of any damage to, loss or destruction of Delivered Aircraft
or other CAM Equipment, while in the possession of IAI and until Re-Delivery, if such damage, loss or destruction is the result of the negligence, gross negligence or willful misconduct of IAI, its directors, officers, servants, agents or employees.

 To meet its indemnity obligation, IAI will maintain aviation premises insurance, aviation products liability, including
grounding, and completed operations insurance, bodily injury, property damage and hanger-keepers’ legal liability insurance in a minimum amount of $100,000,000 per occurrence and aggregate, where applicable. The agreed on value of each
Delivered Aircraft is $33,000,000 and IAI will declare the same to its insurers and such amount shall be the maximum amount that may be claimed in the event of a total loss of a Delivered Aircraft. 
  

	 	(d)	Except for the liquidated damage payments that may be due under the paragraph entitled “IAI Damages”, IAI shall not, and except for the damages that may be due under the
paragraph entitled “CAM Damages”, CAM shall not, be liable for indirect, incidental or consequential damages, loss of profit or loss of use arising out of, or resulting from, the services provided by IAI under this Interim Agreement.

  

	4.	Definitive Agreement 

 Promptly after the signing of
this Interim Agreement by both Parties, CAM shall prepare, and IAI and CAM shall, in good faith using their best efforts, negotiate and, within sixty (60) days from the date of this Interim Agreement, sign the Definitive Agreement. The
Definitive Agreement shall (i) have a term of five (5) years, less the 

  

 12 

 
term of this Interim Agreement, (ii) contain the terms and conditions contained in this Interim Agreement and such other terms and conditions not
inconsistent therewith that are normal and customary in maintenance transactions of this type and (iii) shall be based generally on the December 17, 2001 Boeing 767 Special Freighter Agreement (the “767 Agreement”). 

The Parties agree that, if during the term of this Interim Agreement there is a need for operations provisions not provided herein, the Parties will
refer to such operations provisions as they appear in the 767 Agreement. 
 The Parties further agree that the date to enter into the
Definitive Agreement under the May 14, 2008 Letter Agreement for the PC to SF Conversion Critical Design Review (the “CD Letter”) between IAI and ABX as amended by the LOI, is hereby changed from July 31, 2008 to
September 30, 2008, and that, for such purpose, this Interim Agreement shall satisfy the obligation to enter into the Definitive Agreement by such date. 
  

	5.	Miscellaneous 

 The invalidity or unenforceability
of any provision of this Interim Agreement shall not affect the validity or enforceability of any other provision of this Interim Agreement. In the event of a conflict between the provisions of this Interim Agreement and the provision of the Letter
of Intent, the provisions of this Interim Agreement shall control. To the extent there is no such conflict, the terms and provisions of both the Interim Agreement and the Letter of Intent will apply. This Interim Agreement may not be assigned or
transferred by either Party without the express prior written consent of the other Party and any such attempted assignment or transfer without such prior written consent shall be null and void. This Interim Agreement shall be binding upon the
Parties hereto and their permitted successors or permitted assignees, as the case may be. 
 All notices sent pursuant to this Interim
Agreement shall be sent by certified mail, return receipt requested, in which event such notices shall be deemed to have been given seven (7) days after deposit with the governmental mailing authority, or by international courier, in which case
such notices shall be deemed to have been given three (3) days after delivery to the courier, or by fax, in which case such notice shall be deemed to have been given twenty-four (24) hours after a confirmation is received by the sender, to
the addresses listed above and on this letterhead. 
 [Balance of this page intentionally left blank.] 
 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been filed separately with the SEC. 
  

 13 

 Please countersign this letter where indicated below whereupon it will become a binding agreement between
us. 
  

			
	 Very truly yours,

	
	ISRAEL AEROSPACE INDUSTRIES, LTD.
		
	By:	 	 /s/ Dany Kleiman

		
	Print Name:	 	Dany Kleiman
		
	Title:	 	Corporate Vice President
		
	Fax No.:	 	  

		
	By:	 	 /s/ Jacob Vistanezky

		
	Print Name:	 	Jacob Vistanezky
		
	Title:	 	General Manager Finance
		
	Fax No.:	 	  

  

			
	ACCEPTED AND AGREED TO:
	
	 CARGO
 AIRCRAFT MANAGEMENT,
INC.

		
	By:	 	 /s/ George Golder

		
	Print Name:	 	George Golder
		
	Title:	 	Secretary
		
	Fax No.:	 	  

	
	AIR TRANSPORT SERVICES GROUP, INC. (GUARANTOR)
		
	By:	 	 /s/ W. Joseph Payne

		
	Print Name:	 	W. Joseph Payne
		
	Title:	 	Sr. VP, Corporate General Counsel & Secretary
		
	Fax No.:	 	  

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 14 

 EXHIBIT A 
 PC2SF Aircraft Induction Schedule 
  

									
	 Aircraft
	  	induction	  	TAT	  	Holidays	  	Redelivery
	 1
	  	9/1/2008	  	272	  	13	  	6/13/2009
	 2
	  	4/5/2009	  	120	  	6	  	8/9/2009
	 3
	  	5/3/2009	  	115	  	2	  	8/28/2009
	 4
	  	8/9/2009	  	115	  	7	  	12/9/2009
	 5
	  	8/27/2009	  	115	  	7	  	12/27/2009
	 6
	  	12/8/2009	  	110	  	0	  	3/28/2010
	 7
	  	12/27/2009	  	110	  	4	  	4/20/2010
	 8
	  	3/28/2010	  	110	  	6	  	7/22/2010
	 9
	  	4/19/2010	  	110	  	3	  	8/10/2010
	 10
	  	7/21/2010	  	110	  	7	  	11/15/2010
	 11
	  	8/9/2010	  	110	  	7	  	12/4/2010
	 12
	  	11/14/2010	  	110	  	0	  	3/4/2011
	 13
	  	12/5/2010	  	110	  	0	  	3/25/2011
	 14
	  	3/3/2011	  	110	  	6	  	6/27/2011

 Not including Workscope Change Orders & Painting 
 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been filed separately with the SEC. 
  

 15 

 EXHIBIT B 
 Basic Conversion Prices for various quantities of conversions performed 
  

													
	 	  	24 A/C	  	19 AC	  	14 A/C	  	12 A/C	  	10 A/C	  	6 A/C
	Basic Conversion Price	  	$***	  	$***	  	$***	  	$***	  	$***	  	$***

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 16 

 EXHIBIT C 
 BOEING 767 PC TO SF MODIFICATIONS 
 (Schedule of Prices) 
 1. Fixed Priced Portion of the Workscope. The following Services constitute the Fixed Price Portion of the Workscope and CAM shall select one or more of such
Services to be performed on each Delivered Aircraft as part of a PC Cargo Modification and Weight Upgrade. 
  

	 	(1)	Standard Configuration 

  

					
	Basic Cargo Modification per Specification	  	$	*	**
	Structural upgrade for Pre-line No. 86 (not including Landing Gears, Leading Edge slats and slat tracks)	  	$	*	**
	Maindeck Cargo Handling System, Configuration A, C, D & E	  	$	*	**
	Maindeck Cargo Handling System, Configuration B	  	$	*	**

  

	 	(2)	Weight Upgrades 

  

					
	From 310,000 to 315,000 lbs. MTOW	  	$	*	**
	From 315,000 to 320,000 lbs. MTOW	  	$	*	**
	From 320,000 to 335,000 lbs. MTOW	  	$	*	**
	From 335,000 to 345,000 lbs. MTOW	  	$	*	**
	From 345,000 to 351,000 lbs. MTOW	  	$	*	**
	From 270,000 to 272,000 lbs. MLW	  	$	*	**
	From 272,000 to 278,000 lbs. MLW	  	$	*	**
	From 278,000 to 283,000 lbs. MLW	  	$	*	**
	From 248,000 to 250,000 lbs. MZFW	  	$	*	**
	From 250,000 to 253,000 lbs. MZFW	  	$	*	**
	From 253,000 to 258,000 lbs. MZFW	  	$	*	**
	From 258,000 to 261,000 lbs. MZFW	  	$	*	**
	From 261,000 to 266,000 lbs. MZFW	  	$	*	**

  

	 	(3)	Additional Services 

  

					
	Engine Loading Capabilities	  	$	*	**
	Perishables Capability	  	$	*	**
	Flush Lavatory	  	$	*	**
	Flush Lavatory NRE	  	$	*	**
	Weight & Balance Calculator	  	$	*	**

 *** This portion of the agreement has been omitted pursuant to a request for confidential treatment and has been
filed separately with the SEC. 
  

 17

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