Document:

EMPLOYMENT AGREEMENT

        This Employment Agreement (the "Agreement"),  made and entered into this
25 day of June, 2007, by and between  LIMCO-PIEDMONT  INC., a company  organized
and existing under the laws of Delaware, with its principal place of business at
5304 South Lawton Avenue, Tulsa Oklahoma 74107, USA. (the "Company"),  and SHAUL
MENACHEM, with a residence in Tulsa, Oklahoma ("Executive").

                                   WITNESSETH

        WHEREAS,  Executive  and the  Company  desire to enter  into a  restated
employment agreement; and

        WHEREAS,  Executive has been acting as President & CEO of Limco Airepair
Inc. ("Limco") since February 5, 1998; and

        WHEREAS,  on May 10, 2004 Limco and  Executive  executed  an  employment
agreement  setting forth the terms of Executive's  employment as the President &
CEO of Limco (the "Basic Agreement"); and

        WHEREAS,  in April  2005  Limco  and  Executive  executed  supplementary
agreement   amending  the  Basic  Agreement  and  setting  forth  the  terms  of
Executive's  employment  as the President & CEO of Piedmont  Aviation  Component
Services  L.L.C.  ("Piedmont") in addition to his position as President & CEO of
Limco (the "Supplementary Agreement"); and

        WHEREAS,   a  new   corporate   structure  has  been   established   and
Limco-Piedmont  Inc.  has been  established  as a holding  company for Limco and
Piedmont (together the "Subsidiaries"); and

        WHEREAS, the Company intends to offer its securities to the public in an
initial public offering (the "IPO");

        NOW THEREFORE,  in consideration of the mutual covenants set out herein,
the  Parties  agree as follows:

1. GENERAL

        1.1.  The Whereas  clauses  above  constitute  an integral  part of this
              Agreement.

        1.2.  This  Agreement,  dated  June 25,  2007  (the  "Effective  Date"),
              replaces  all  previous  agreements,   letters,  and  arrangements
              between the Company,  Executive and the Subsidiaries  with respect
              to the subject matter hereof.

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2. TERM

        This  Agreement  shall be for a term beginning on the Effective Date and
        ending  on  December  31,  2008,  subject  to  the  earlier  termination
        provisions contained herein (the "Term"). No later than 90 days prior to
        the  end  of  the  Term,   the  parties  shall  enter  into  good  faith
        negotiations  for the  renewal of this  Agreement.  If the  parties  are
        unable  to  reach  an  agreement,  then,  upon  the  expiration  of this
        Agreement, the Executive's employment shall terminate.

3. THE OFFICE

        3.1.  In addition to Executive's  employment as CEO of the Subsidiaries,
              Executive  will serve as  President & CEO of the Company and shall
              report to the Board of  Directors  of the  Company,  which will be
              represented by the Chairman of the Company.

        3.2.  Nothing  contained  herein shall prevent the Board of Directors of
              the Company from  appointing  individuals  other than Executive to
              serve as  president or managing  directors of Limco and  Piedmont,
              provided that such  individuals  report to Executive as CEO of the
              Company.

4. ANNUAL SALARY

        Effective  January  1, 2007  Executive's  annual  base  salary  shall be
        $218,380,  less  applicable  taxes and other  withholding.  It is hereby
        agreed that the above annual base salary is inclusive of $18,380,  which
        represents the Company's  prior  obligation to pay Executive  annually a
        2-week severance payment and training stipend.

5. PROFITS PARTICIPATION BONUS

        5.1.  As of January 1, 2007  Executive  shall be  entitled  to an annual
              bonus equal to 3% of the  consolidated  net profit of the Company,
              up to a maximum of $250,000.

        5.2.  "Consolidated  Net Profit" shall mean the consolidated net profits
              (before tax and excluding  capital gains and after  deductions for
              accumulated  losses,  if any) of the Company for the calendar year
              for  which  the  bonus  is being  paid.  For any  partial  year of
              employment the bonus will be prorated.

        5.3.  The Bonus will be paid to Executive within 30 days of the issuance
              of audited financial  statements by the Company's auditors for the
              calendar year for which the bonus is being paid.

6. IPO BONUS AND THE GRANT OF OPTIONS

              6.1. Upon the closing and  consummation  of the IPO,  provided the
              IPO and  consummation  occurs before December 31, 2007,  Executive
              will be  entitled  to an IPO Bonus of  $250,000  (the  "IPO  Bonus
              Amount"), provided that the

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              gross proceeds raised by Company IPO (the "Company  Proceeds") are
              $35 million,  plus or minus 20%. If the Company  Proceeds are more
              than $42 million or less than $28  million,  the IPO Bonus  Amount
              will be increased or decreased,  as the case may be,  according to
              the  proportion  between  the  actual  Company  Proceeds  and  $35
              million.  Proceeds to the selling  shareholder for its sale of the
              Company  shares  in the IPO  will  not be  considered  as  Company
              Proceeds.

              The IPO Bonus amount will be paid within 30 days following the IPO
              Closing Date provided Executive was not terminated for cause prior
              to the date of payment.

        6.2.  Executive  shall be issued  options  under the  Company  incentive
              option plan (the "Options  Plan") to purchase 66,000 shares of the
              Company's  common stock under the same terms and exercise price as
              shall be determined by the Board for all the recipients of options
              granted  under the Option  Plan prior to the IPO,  except that the
              options shall vest over a two year period beginning upon issuance,
              with 25% of the options vesting semi-annually.

7. PHANTOM OPTIONS ON TAT TECHNOLOGIES LTD. SHARES

        7.1.  The Company hereby assumes and accepts all of Limco's  liabilities
              and  obligations  to  Executive   concerning   5,000   outstanding
              non-transferable  Phantom Options based on the Price at the NASDAQ
              of the  shares  of  TAT  Technologies  Ltd.  ("TAT"),  granted  to
              Executive  by Limco  according  to Section 5 of the  Supplementary
              Agreement ("the Phantom Options").

        7.2.  The  Phantom  Options may be  exercised  by  Executive  during the
              period  commencing  on the date hereof and ending on June 30, 2010
              (inclusive) (the "Exercise  Period") by submitting to the Company,
              a written notice (the  "Exercised  Notice")  stating the Executive
              wishes to  exercise  the  Phantom  Options.  The date the  Company
              receives any such Exercise Notice shall be the "Exercise Date."

        7.3.  No later than 15 days  following  the Exercise  Date,  the Company
              will pay  Executive  an amount  equal to the  balance  between the
              average  closing price of TAT's shares at the NASDAQ during the 60
              trading days ending on the Exercise Date (inclusive) (the "Average
              Share  Price")  and  US$  6.75  (the  "Basic   Exercise   Price"),
              multiplied by the number of Phantom Options exercised according to
              that Exercise Notice (the "Gain").

              The Basic Exercise  Price will be reduced by any dividend  payment
              per  share  by TAT to its  Shareholders  after  the  grant  of the
              Phantom  Options  by  Limco.  The  reduced  Basic  Exercise  Price
              following  dividends payments made by TAT until the date hereof is
              US$ 6.37.

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8. VEHICLE

        The Company  shall  provide  Executive  with a vehicle  suitable for his
        position which shall be approved by the Board of Directors.  The Company
        shall pay all costs concerning its maintenance and operation, except for
        traffic fines and other such obligatory payments.

9. EXPENSES REIMBURSEMENT

        The Company shall reimburse  Executive for all reasonable  out-of-pocket
        expenses incurred by Executive in connection with the performance of his
        duties  hereunder,  including  expenses  incurred for travel  inside and
        outside the USA, provided that the Executive  properly accounts for such
        expenses in accordance with the Company's policies and budgets.

10. HOUSE EXPENSES

        The Company shall pay all reasonable  expenses  incurred by Executive in
        connection   with   Executive's   house  in  Tulsa,   including,   rent,
        electricity, gas, water, cable television and telephone.

11. FLIGHT TICKETS

        The Company shall pay for up to four round-trip tickets annually between
        Tulsa and Israel for Executive's wife.

12. USA VISAS AND PERMITS

        The  Company  shall  bear all costs with  respect  to Visas and  permits
        entering and staying in United States for Executive.

13. ADDITIONAL BENEFITS

        13.1.   Executive  shall be entitled to 23 vacation  days per year to be
                accrued  on a monthly  basis in  accordance  with the  Company's
                vacation  policy.  Executive shall be entitled to accrue no more
                than 552 hours at any given  time.  The Parties  hereby  confirm
                that as of December 31, 2006 the balance of  Executive  vacation
                rights is 501 hours. At the end of every calendar year Executive
                will  inform  the  Chairman  of the Board in  writing  as to the
                balance of his vacation rights.

        13.2.   Executive shall be entitled to receive Company  benefits as paid
                to other managers of the Company.

        13.3.   Executive  shall be  entitled to a clothing  allowance  of up to
                $1,000 per year.

<PAGE>

14. TERMINATION

        The Company may terminate this  Agreement for "Cause" at any time,  upon
        written notice to the Executive  setting forth in reasonable  detail the
        nature of such Cause.  For purposes of this Agreement,  Cause is defined
        as (i) the Executive's  willful and material breach of the terms of this
        Agreement  or  of  any  other  agreement  with  the  Company;  (ii)  the
        Executive's  commission  of any  felony  or any  crime  involving  moral
        turpitude; (iii) gross negligence or willful misconduct by the Executive
        in connection with his position hereunder;  (iv) the Executive's willful
        refusal to perform his duties hereunder; (v) persistent poor performance
        as assessed in good faith by the Company or (vi) the Executive's failure
        to follow the written  policies or directives  of the Company.  Upon the
        termination for Cause of Executive's employment,  the Company shall have
        no further  obligation  or  liability  to the  Executive  other than for
        salary earned under this Agreement prior to the date of termination, and
        any accrued but unused vacation.

15. ADAPTATION BONUS

        At the  completion of his  employment by the Company,  Executive will be
        paid  an   adaptation   bonus  of  six  (6)  months'   base  salary  and
        reimbursement  for  moving  expenses  to  Israel  up to  $4000  (against
        receipts).

16. TAXES

        Any taxes due as a result of the benefits provided to Executive pursuant
        to  this  Agreement  shall  be paid by  Executive.  Expenses  reimbursed
        pursuant  to  Sections  8, 10,  11, 12 and 13 above  shall be net of any
        taxes due.

16. INDEMNIFICATION

        The parties shall enter into and indemnification agreement substantially
        in the form attached hereto as Exhibit A.

17.  CONFIDENTIALITY; NON-COMPETE; NON-SOLICIT

        17.1    During  Executive's  employment with the Company and afterwards,
                Executive shall keep and treat as confidential  information this
                Agreement and all non-public  information  obtained by Executive
                during his employment with the Company and its  Subsidiaries and
                shall not disclose or use any  information of the Company or its
                Subsidiaries that is not available to the public.

        17.2    During  the  Executive's  employment  and for a period of twelve
                months after  termination  for any reason,  Executive shall not,
                within any jurisdiction in which the Company or its Subsidiaries
                are  transacting   business  or  has  authorized  others  to  do
                business,  directly or indirectly own, manage,

<PAGE>

                operate, control, be employed by, provide consulting services to
                or for, or participate in the ownership,  management,  operation
                or control of any business of the type and character  engaged in
                by the  Company  or its  subsidiaries  or  competitive  with the
                Company or its  Subsidiaries,  including  but not limited to the
                manufacturing,  sale and/or  overhaul of aircraft ducts and heat
                exchangers and their  components,  and other business engaged in
                by  the  Company  or its  Subsidiaries  during  the  Executive's
                employment with the Company.

        17.3    During the  Executive's  employment  and  thereafter,  Executive
                shall  not  directly  or  indirectly  hire,  employ or offer any
                alternative  employment  opportunity  to  any  employee  of  the
                Company or its Subsidiaries.

18. NOTICES.

        Any  notice  under  the  Agreement  shall  be in  writing  and  shall be
        effective when actually delivered in person,  or, if mailed,  three days
        after  mailing to the party at the address  stated in the  Agreement  or
        such other address as either party may designate by written notice.

19. ENTIRE AND BINDING AGREEMENT.

        The Agreement  contains the full understanding and agreement between and
        among the Parties regarding  Executive's  employment and the termination
        and supersedes any prior  understandings  and agreements.  The Agreement
        and any subsequent  amendments or attachments formally executed shall be
        binding  upon  the  heirs,  executors,  administrators,  successors  and
        assignees of the parties hereto.

20. GOOD FAITH AND COOPERATION.

        The parties  hereto  covenant,  warrant and represent to each other good
        faith,  complete  cooperation  and honesty in fact in the performance of
        all  obligations  pursuant to the Agreement.  All promises and covenants
        are mutual and dependent.

21. SAVING CLAUSE.

        If any provision of the Agreement,  or the application of such provision
        shall be held invalid, the remainder of the Agreement or the application
        of such  provision  to persons or  circumstances  other than those as to
        which it is held invalid shall not be affected thereby.

22. CHOICE OF LAW.

        The validity,  interpretation and performance of this Agreement shall be
        governed  by, and  construed  in  accordance  with,  the internal law of
        Oklahoma, without giving effect to conflict of law principles.

<PAGE>

23. ASSIGNMENT.

        The Executive acknowledges and agrees that the rights and obligations of
        the Company  under this  Agreement may be assigned by the Company to any
        successors in interest.  The Executive  further  acknowledges and agrees
        that this  Agreement is personal to the Executive and that the Executive
        may not assign any rights or obligations hereunder.

24. AMENDMENTS.

        Any  attempted  modification  of this  Agreement  will not be  effective
        unless signed by an officer of the Company and the Executive.

        IN WITNESS  WHEREOF,  the Parties have agreed and are duly authorized to
execute this Agreement the day and year first herein above written.

For and on behalf of

/s/ Dov Zeelim                              /s/ Shaul Menachem
------------------                          -------------------
Piedmont - Limco Inc.                       Shaul Menachem

By: Dov Zeelim

Title: Chairman

Date: 6/25/07

<PAGE>

                                                                       EXHIBIT A

                            INDEMNIFICATION AGREEMENT

        This  Indemnification  Agreement (this  "Agreement") is made and entered
into  as of the 25 day of  June  2007  by and  between  Limco-Piedmont  Inc.,  a
Delaware corporation (the "Corporation"), and Shaul Menachem ("Indemnitee").

                              W I T N E S S E T H:
                               - - - - - - - - - -

        WHEREAS, Indemnitee is currently serving or is about to begin serving as
a director and/or officer of the Corporation and/or in another Corporate Status,
and  Indemnitee is willing,  subject to, among other things,  the  Corporation's
execution  of  this  Agreement,  to  continue  in or  assume  such  capacity  or
capacities; and

        WHEREAS,  the Bylaws of the  Corporation  provide  that the  Corporation
shall  indemnify  directors  and officers of the  Corporation  in the manner set
forth therein; and

        WHEREAS,  the  Corporation  and  Indemnitee  desire  to enter  into this
Agreement to induce  Indemnitee to provide  services as contemplated  hereby and
the  Corporation  has  deemed it to be in its best  interest  to enter into this
Agreement with Indemnitee.

        NOW,  THEREFORE,  in consideration of Indemnitee's  agreement to provide
services to the Corporation  and/or certain of its affiliates as contemplated by
this  Agreement,  the  mutual  agreements  contained  herein  and other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties agree as follows.

                             1. CERTAIN DEFINITIONS

        As used herein,  the following  words and terms shall have the following
respective meanings (whether singular or plural):

        "CHANGE OF CONTROL" means a change in control of the  Corporation  after
the date Indemnitee acquired his Corporate Status, which shall be deemed to have
occurred in any one of the following  circumstances  occurring  after such date:
(i) there shall have  occurred an event  required to be reported with respect to
the  Corporation  in response to Item 6(e) of Schedule 14A of Regulation 14A (or
in  response to any similar  item or any similar  schedule or form)  promulgated
under the  Securities  Exchange Act of 1934,  as amended (the  "Exchange  Act"),
whether or not the  Corporation is then subject to such  reporting  requirement;
(ii) any  "person"  (as such  term is used in  Sections  13(d)  and 14(d) of the
Exchange Act) shall have become the "beneficial owner" (as defined in Rule 13d-3
under  the  Exchange  Act),  directly  or  indirectly,   of  securities  of  the
Corporation  representing  40% or  more  of the  combined  voting  power  of the
Corporation's  then outstanding  voting

<PAGE>

securities  without prior approval of at least  two-thirds of the members of the
Board of Directors in office  immediately  prior to such person  attaining  such
percentage   interest;   (iii)  the   Corporation   is  a  party  to  a  merger,
consolidation,  sale of assets or other reorganization, or a proxy contest, as a
consequence  of which  members of the Board of Directors  in office  immediately
prior to such  transaction or event constitute less than a majority of the Board
of Directors  thereafter;  or (iv) during any period of two  consecutive  years,
individuals  who at the  beginning  of such  period  constituted  the  Board  of
Directors  (including,  for this  purpose,  any new director  whose  election or
nomination for election by the Corporation's shareholders was approved by a vote
of at least  two-thirds of the directors then still in office who were directors
at the  beginning of such period)  cease for any reason to constitute at least a
majority of the Board of Directors.

        "CORPORATE  STATUS"  describes  the status of  Indemnitee as a director,
officer,  employee,  agent  or  fiduciary  of the  Corporation  or of any  other
corporation, partnership, limited liability company, association, joint venture,
trust,  employee  benefit plan or other  enterprise  that  Indemnitee  is or was
serving at the express written request of the Corporation.

        "COURT"  means  the  District  Court of  Tulsa  County  of the  State of
Oklahoma or any other court of competent jurisdiction.

        "DGCL" means the Delaware General  Corporation Law, as amended from time
to time.

        "EXPENSES"  shall include all  reasonable  attorneys'  fees,  retainers,
court costs,  transcript costs, fees of experts,  witness fees, travel expenses,
duplicating  costs,  printing and binding  costs,  telephone  charges,  postage,
delivery  service  fees,  and all other  disbursements  or expenses of the types
customarily  incurred in connection with  prosecuting,  defending,  preparing to
prosecute or defend,  investigating,  or being or preparing to be a witness in a
Proceeding.

        "INDEPENDENT  COUNSEL" means a law firm, or a member of a law firm, that
is experienced in matters of  corporation  law and neither  presently is, nor in
the five years  previous to his selection or appointment  has been,  retained to
represent:  (i) the  Corporation or Indemnitee in any matter  material to either
such party or (ii) any other party to the Proceeding  giving rise to a claim for
indemnification hereunder.

        "MATTER"  is a claim,  a material  issue or a  substantial  request  for
relief.

        "PROCEEDING" includes any action, suit,  arbitration,  alternate dispute
resolution  mechanism,  investigation,   administrative  hearing  or  any  other
proceeding, whether civil, criminal, administrative or investigative, except one
initiated by  Indemnitee  pursuant to SECTION 6.01 of this  Agreement to enforce
his rights under this Agreement.

<PAGE>

                            2. SERVICES BY INDEMNITEE

2.01    SERVICES BY INDEMNITEE.  Indemnitee agrees to serve or continue to serve
        in his current capacity or capacities as a director,  officer, employee,
        agent or fiduciary of the Corporation.  Indemnitee also agrees to serve,
        as the  Corporation  may  request  from  time to  time,  as a  director,
        officer,   employee,  agent  or  fiduciary  of  any  other  corporation,
        partnership,  limited  liability  company,  association,  joint venture,
        trust or other  enterprise  in which the  Corporation  has an  interest.
        Indemnitee and the Corporation  each  acknowledge that they have entered
        into  this  Agreement  as a means of  inducing  Indemnitee  to serve the
        Corporation in such capacities.

2.02    TERMINATION  OF SERVICES.  Indemnitee may at any time and for any reason
        resign from such position or positions (subject to any other contractual
        obligation  or  any  obligation   imposed  by  operation  of  law).  The
        Corporation  shall have no obligation  under this  Agreement to continue
        Indemnitee's  service to the  Corporation  in any such  position for any
        period of time and  shall not be  precluded  by the  provisions  of this
        Agreement from removing or terminating Indemnitee from any such position
        at any time.

                               3. INDEMNIFICATION

3.01    GENERAL.  The Corporation shall, to the fullest extent permitted by, and
        subject to the limitations specified by, applicable law in effect on the
        date hereof, and to such greater extent as applicable law may thereafter
        permit,  indemnify and hold Indemnitee harmless from and against any and
        all losses,  liabilities,  claims, damages and, subject to SECTION 3.02,
        Expenses (as this and all other capitalized words are defined in ARTICLE
        1. of this Agreement),  whatsoever, other than in an action by or in the
        right of the Corporation, arising out of any event or occurrence related
        to the fact that  Indemnitee  is or was a  director  or  officer  of the
        Corporation or is or was serving at the express  written  request of the
        Corporation in another Corporate Status.

3.02    EXPENSES.  If Indemnitee is, by reason of his Corporate  Status, a party
        to and is successful,  on the merits or otherwise, in any Proceeding, he
        shall be  indemnified  against  all  Expenses  actually  and  reasonably
        incurred by him or on his behalf in connection therewith.  If Indemnitee
        is not wholly  successful in such  Proceeding but is successful,  on the
        merits  or  otherwise,  as  to  any  Matter  in  such  Proceeding,   the
        Corporation shall indemnify Indemnitee against all Expenses actually and
        reasonably incurred by him or on his behalf relating to such Matter. The
        termination  of any Matter in such a Proceeding  by  dismissal,  with or
        without prejudice,  shall be deemed to be a successful result as to such
        Matter. To the extent that the Indemnitee is, by reason of his Corporate
        Status, a witness in any Proceeding, he shall be indemnified against all
        Expenses  actually  and  reasonably  incurred by him or on his behalf in
        connection therewith.

<PAGE>

                           4. ADVANCEMENT OF EXPENSES

4.01    ADVANCES.  In the event of any  threatened  or pending  action,  suit or
        proceeding  in which  Indemnitee  is a party or is involved and that may
        give rise to a right of indemnification under this Agreement,  following
        written request to the Corporation by Indemnitee,  the Corporation shall
        promptly pay to Indemnitee amounts to cover expenses reasonably incurred
        by  Indemnitee in such  proceeding  in advance of its final  disposition
        upon  the  receipt  by  the  Corporation  of (i) a  written  undertaking
        executed by or on behalf of Indemnitee  providing that  Indemnitee  will
        repay the advance if it shall  ultimately be determined  that Indemnitee
        is not entitled to be indemnified by the  Corporation  under  applicable
        law or as provided in this Agreement and (ii)  satisfactory  evidence as
        to the amount of such expenses.

4.02    REPAYMENT  OF  ADVANCES  OR  OTHER  EXPENSES.   Indemnitee  agrees  that
        Indemnitee  shall reimburse the Corporation for all expenses paid by the
        Corporation  in  defending  any  civil,   criminal,   administrative  or
        investigative action, suit or proceeding against Indemnitee in the event
        and  only to the  extent  that it shall be  determined  pursuant  to the
        provisions  of this  Agreement  or by  final  judgment  or  other  final
        adjudication  under the provisions of any applicable law that Indemnitee
        is not entitled to be indemnified by the Corporation for such expenses.

        5. PROCEDURE FOR DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION

5.01    REQUEST FOR INDEMNIFICATION. To obtain indemnification, Indemnitee shall
        submit to the  Secretary of the  Corporation a written claim or request.
        Such written claim or request shall contain  sufficient  information  to
        reasonably  inform  the  Corporation  about the nature and extent of the
        indemnification  or advance sought by Indemnitee.  At the request of the
        Corporation,  Indemnitee  shall furnish such further  documentation  and
        information  as  are  reasonably   available  to  Indemnitee  that  will
        establish that Indemnitee is entitled to indemnification  hereunder. The
        Secretary  of  the  Corporation  shall  promptly  advise  the  Board  of
        Directors of such request.

5.02    DETERMINATION OF ENTITLEMENT; NO CHANGE OF CONTROL. If there has been no
        Change  of  Control  at the  time the  request  for  indemnification  is
        submitted,   Indemnitee's   entitlement  to  indemnification   shall  be
        determined in accordance with Section 145(d) of the DGCL. If entitlement
        to  indemnification  is to be determined  by  Independent  Counsel,  the
        Corporation  shall  furnish  notice to  Indemnitee  within 10 days after
        receipt of the request for indemnification,  specifying the identity and
        address of Independent Counsel. The Indemnitee may, within 14 days after
        receipt of such written notice of selection,  deliver to the Corporation
        a written  objection to such  selection.  Such objection may be asserted
        only on the ground that the  Independent  Counsel so  selected  does not
        meet the

<PAGE>

        requirements  of Independent  Counsel and the objection  shall set forth
        with particularity the factual basis for such assertion.  If there is an
        objection  to  the  selection  of   Independent   Counsel,   either  the
        Corporation  or  Indemnitee  may petition the Court for a  determination
        that  the  objection  is  without  a  reasonable  basis  and/or  for the
        appointment of Independent Counsel selected by the Court.

5.03    DETERMINATION  OF  ENTITLEMENT;  CHANGE OF CONTROL.  If there has been a
        Change  of  Control  at the  time the  request  for  indemnification  is
        submitted,   Indemnitee's   entitlement  to  indemnification   shall  be
        determined  in a written  opinion by  Independent  Counsel  selected  by
        Indemnitee.  Indemnitee shall give the Corporation, within 10 days after
        receipt of the request for  indemnification,  written notice advising of
        the identity  and address of the  Independent  Counsel so selected.  The
        Corporation  may, within 14 days after receipt of such written notice of
        selection,  deliver  to the  Indemnitee  a  written  objection  to  such
        selection.  Indemnitee  may,  within five days after the receipt of such
        objection from the Corporation,  submit the name of another  Independent
        Counsel and the Corporation may, within seven days after receipt of such
        written  notice  of  selection,  deliver  to the  Indemnitee  a  written
        objection to such selection.  Any objections referred to in this SECTION
        5.03 may be asserted only on the ground that the Independent  Counsel so
        selected does not meet the requirements of Independent  Counsel and such
        objection shall set forth with  particularity the factual basis for such
        assertion.  Indemnitee may petition the Court for a  determination  that
        the  Corporation's  objection  to the first and/or  second  selection of
        Independent  Counsel  is  without  a  reasonable  basis  and/or  for the
        appointment as Independent Counsel of a person selected by the Court.

5.04    PROCEDURES  OF  INDEPENDENT  COUNSEL.  If a Change of Control shall have
        occurred before the request for  indemnification  is sent by Indemnitee,
        Indemnitee shall be presumed (except as otherwise  expressly provided in
        this Agreement) to be entitled to  indemnification  upon submission of a
        request for  indemnification  in  accordance  with  SECTION 5.01 of this
        Agreement, and thereafter the Corporation shall have the burden of proof
        to overcome the presumption in reaching a determination  contrary to the
        presumption.  The presumption shall be used by Independent  Counsel as a
        basis for a determination of entitlement to  indemnification  unless the
        Corporation provides information sufficient to overcome such presumption
        by clear  and  convincing  evidence  or the  investigation,  review  and
        analysis of  Independent  Counsel  convinces him by clear and convincing
        evidence that the presumption should not apply.

        Except  in  the  event  that  the   determination   of   entitlement  to
        indemnification is to be made by Independent  Counsel,  if the person or
        persons  empowered  under  SECTION  5.02 or 5.03  of this  Agreement  to
        determine  entitlement  to  indemnification  shall  not  have  made  and
        furnished to Indemnitee in writing a determination  within 60 days after
        receipt  by the  Corporation  of the  request  therefor,  the  requisite
        determination of entitlement to indemnification  shall be deemed to have
        been  made and  Indemnitee  shall be  entitled  to such

<PAGE>

        indemnification  unless Indemnitee  knowingly  misrepresented a material
        fact  in  connection  with  the  request  for  indemnification  or  such
        indemnification  is prohibited by applicable law. The termination of any
        Proceeding or of any Matter therein, by judgment,  order,  settlement or
        conviction,  or upon a plea of NOLO CONTENDERE or its equivalent,  shall
        not (except as otherwise expressly provided in this Agreement) of itself
        adversely affect the right of Indemnitee to  indemnification or create a
        presumption  that  Indemnitee  did not act in good faith and in a manner
        that  he  reasonably  believed  to be in or  not  opposed  to  the  best
        interests  of  the   Corporation,   or  with  respect  to  any  criminal
        Proceeding,  that  Indemnitee had  reasonable  cause to believe that his
        conduct was  unlawful.  A person who acted in good faith and in a manner
        he  reasonably  believed to be in the interest of the  participants  and
        beneficiaries  of an employee  benefit plan of the Corporation  shall be
        deemed to have acted in a manner not  opposed to the best  interests  of
        the Corporation.

        For purposes of any determination hereunder, a person shall be deemed to
        have acted in good faith and in a manner he reasonably believed to be in
        or not  opposed  to the best  interests  of the  Corporation,  or,  with
        respect to any criminal action or Proceeding,  to have had no reasonable
        cause to believe his conduct was unlawful, if his action is based on the
        records or books of account of the Corporation or another  enterprise or
        on  information  supplied to him by the officers of the  Corporation  or
        another  enterprise  in the  course of their  duties or on the advice of
        legal  counsel  for  the   Corporation  or  another   enterprise  or  on
        information  or records  given or  reports  made to the  Corporation  or
        another  enterprise by an independent  certified public accountant or by
        an  appraiser  or other  expert  selected  with  reasonable  care by the
        Corporation or another enterprise. The term "another enterprise" as used
        in this Section  shall mean any other  corporation  or any  partnership,
        limited liability company,  association,  joint venture, trust, employee
        benefit plan or other  enterprise of which such person is or was serving
        at the  express  written  request  of  the  Corporation  as a  director,
        officer,  employee or agent.  The provisions of this paragraph shall not
        be deemed to be  exclusive or to limit in any way the  circumstances  in
        which an Indemnitee may be deemed to have met the  applicable  standards
        of conduct for determining entitlement to rights under this Agreement.

5.05    INDEPENDENT  COUNSEL EXPENSES.  If it shall be determined by Independent
        Counsel  that  Indemnitee  is  entitled  to  indemnification  under this
        Agreement,  the  Corporation  shall pay any and all reasonable  fees and
        expenses of Independent Counsel incurred acting pursuant to this ARTICLE
        5. and in any proceeding to which it is a party or witness in respect of
        its  investigation  and written report and shall pay all reasonable fees
        and  expenses  incident  to the  procedures  in which  such  Independent
        Counsel was selected or appointed. No Independent Counsel may serve if a
        timely  objection  has  been  made to his  selection  until a Court  has
        determined that such objection is without a reasonable basis.

<PAGE>

                        6. CERTAIN REMEDIES OF INDEMNITEE

6.01    ADJUDICATION.  In the event that (i) a determination is made pursuant to
        SECTION  5.02  or  5.03  hereof  that  Indemnitee  is  not  entitled  to
        indemnification  under this Agreement;  (ii)  advancement of Expenses is
        not timely  made  pursuant  to  SECTION  4.01 of this  Agreement;  (iii)
        Independent  Counsel  has not  made  and  delivered  a  written  opinion
        determining  the  request for  indemnification  (a) within 90 days after
        being appointed by the Court, or (b) within 90 days after  objections to
        his  selection  have been  overruled  by the Court or (c) within 90 days
        after  the time for the  Corporation  or  Indemnitee  to  object  to his
        selection; or (iv) payment of indemnification is not made within 20 days
        after a determination of entitlement to indemnification has been made or
        deemed to have been made pursuant to SECTION 5.02,  5.03 or 5.04 of this
        Agreement, Indemnitee shall be entitled to an adjudication in the Court,
        or in any other court of competent  jurisdiction,  of his entitlement to
        such  indemnification  or advancement  of Expenses.  In the event that a
        determination  shall have been made that  Indemnitee  is not entitled to
        indemnification,   any  judicial  proceeding  or  arbitration  commenced
        pursuant to this SECTION 6.01 shall be conducted in all respects as a DE
        NOVO trial on the  merits  and  Indemnitee  shall not be  prejudiced  by
        reason of that adverse determination.  If a Change of Control shall have
        occurred,  in any judicial proceeding commenced pursuant to this SECTION
        6.01, the  Corporation  shall have the burden of proving that Indemnitee
        is not entitled to  indemnification  or advancement of Expenses,  as the
        case may be. If a determination  shall have been made that Indemnitee is
        entitled  to  indemnification,  the  Corporation  shall be bound by such
        determination  in any  judicial  proceeding  commenced  pursuant to this
        SECTION 6.01, or otherwise, unless Indemnitee knowingly misrepresented a
        material fact in  connection  with the request for  indemnification,  or
        such indemnification is prohibited by law.

        The  Corporation  shall be  precluded  from  asserting  in any  judicial
        proceeding  commenced  pursuant to this SECTION 6.01 that the procedures
        and   presumptions  of  this  Agreement  are  not  valid,   binding  and
        enforceable,  and  shall  stipulate  in any  such  proceeding  that  the
        Corporation is bound by all provisions of this  Agreement.  In the event
        that  Indemnitee,  pursuant  to this  SECTION  6.01,  seeks  a  judicial
        adjudication  to enforce  his rights  under,  or to recover  damages for
        breach of, this Agreement,  Indemnitee shall be entitled to recover from
        the  Corporation,  and shall be indemnified by the Corporation  against,
        any and all  Expenses  actually and  reasonably  incurred by him in such
        judicial  adjudication,  but only if he prevails therein. If it shall be
        determined in such judicial  adjudication that Indemnitee is entitled to
        receive  part  but  not all of the  indemnification  or  advancement  of
        Expenses  sought,  the  Expenses  actually  and  reasonably  incurred by
        Indemnitee in connection with such judicial  adjudication or arbitration
        shall be appropriately prorated.

<PAGE>

                       7. PARTICIPATION BY THE CORPORATION

7.01    PARTICIPATION  BY THE  CORPORATION.  With  respect  to any  such  claim,
        action,  suit,  proceeding  or  investigation  as  to  which  Indemnitee
        notifies  the  Corporation  of  the   commencement   thereof:   (a)  the
        Corporation will be entitled to participate  therein at its own expense;
        (b) except as otherwise  provided below, to the extent that it may wish,
        the  Corporation  (jointly with any other  indemnifying  party similarly
        notified) will be entitled to assume the defense  thereof,  with counsel
        reasonably satisfactory to Indemnitee.  After receipt of notice from the
        Corporation to Indemnitee of the Corporation's election so to assume the
        defense thereof,  the Corporation will not be liable to Indemnitee under
        this Agreement for any legal or other expenses  subsequently incurred by
        Indemnitee in connection  with the defense thereof other than reasonable
        costs of investigation or as otherwise provided below.  Indemnitee shall
        have  the  right  to  employ  his  own  counsel  in such  action,  suit,
        proceeding  or  investigation  but the fees and expenses of such counsel
        incurred  after notice from the  Corporation  of its  assumption  of the
        defense  thereof  shall be at the expense of  Indemnitee  unless (i) the
        employment  of  counsel  by  Indemnitee  has  been   authorized  by  the
        Corporation,  (ii) Indemnitee shall have reasonably concluded that there
        is a conflict of interest  between the Corporation and Indemnitee in the
        conduct of the defense of such action or (iii) the Corporation shall not
        in fact have employed  counsel to assume the defense of such action,  in
        each of which  cases  the fees  and  expenses  of  counsel  employed  by
        Indemnitee shall be subject to indemnification  pursuant to the terms of
        this  Agreement  (the  Corporation  shall not be  entitled to assume the
        defense of any action, suit,  proceeding or investigation brought in the
        name of or on behalf of the Corporation or as to which  Indemnitee shall
        have  made  the  conclusion  provided  for in (ii)  above);  and (c) the
        Corporation  shall not be  liable to  indemnify  Indemnitee  under  this
        Agreement  for any  amounts  paid in  settlement  of any action or claim
        effected  without  its  written  consent,  which  consent  shall  not be
        unreasonably  withheld.  The Corporation  shall not settle any action or
        claim in any manner that would impose any  limitation  or  unindemnified
        penalty  on  Indemnitee  without  Indemnitee's  written  consent,  which
        consent shall not be unreasonably withheld.

                                8. MISCELLANEOUS

8.01    NONEXCLUSIVITY  OF  RIGHTS;  TERM.  The  rights of  indemnification  and
        advancement  of  Expenses as  provided  by this  Agreement  shall not be
        deemed exclusive of any other rights to which Indemnitee may at any time
        be entitled to under  applicable law, the  Corporation's  Certificate of
        Incorporation,  the  Corporation's  Bylaws,  any  agreement,  a vote  of
        shareholders or a resolution of directors,  or otherwise.  No amendment,
        alteration or repeal of this Agreement or any provision  hereof shall be
        effective  as to  Indemnitee  for acts,  events and  circumstances  that
        occurred,  in whole or in part,  before such  amendment,  alteration  or
        repeal.

        This Agreement shall continue until and terminate upon the later of: (a)
        10 years

<PAGE>

        after  the date  that  Indemnitee  has  ceased  to serve as a  director,
        officer, employee, agent or fiduciary of the Corporation or of any other
        corporation, partnership, joint venture, trust, employee benefit plan or
        other enterprise which Indemnitee  served at the express written request
        of  the  Corporation  or  (b)  the  final  termination  of  all  pending
        Proceedings  in  respect  of  which  Indemnitee  is  granted  rights  of
        indemnification   or  advancement  of  expenses  hereunder  and  of  any
        proceeding  commenced  by  Indemnitee  pursuant  to  Section  6 of  this
        Agreement  relating  thereto.  In  addition,  no legal  action  shall be
        brought  and no cause of action  shall be asserted by or in the right of
        the Corporation against Indemnitee,  Indemnitee's estate, spouse, heirs,
        executors or personal or legal representatives after the expiration of 5
        years from the date of accrual of such cause of action, and any claim or
        cause of action of the  Corporation  shall be  extinguished  and  deemed
        released  unless  asserted by the timely filing of a legal action within
        such five 5 year period;  provided,  however, that if any shorter period
        of limitations is otherwise applicable to any such cause of action, such
        shorter period shall govern.

8.02    INSURANCE AND  SUBROGATION.  The  Corporation  shall not be liable under
        this  Agreement to make any payment of amounts  otherwise  indemnifiable
        hereunder  if, but only to the extent  that,  Indemnitee  has  otherwise
        actually  received such payment under any  insurance  policy,  contract,
        agreement  or  otherwise.  In the event of any  payment  hereunder,  the
        Corporation shall be subrogated to the extent of such payment to all the
        rights of recovery of Indemnitee,  who shall execute all papers required
        and take all action  reasonably  requested by the  Corporation to secure
        such rights,  including  execution of such documents as are necessary to
        enable the Corporation to bring suit to enforce such rights.

8.03    ACKNOWLEDGMENT  OF CERTAIN MATTERS.  Both the Corporation and Indemnitee
        acknowledge that in certain  instances,  applicable law or public policy
        may prohibit indemnification of Indemnitee by the Corporation under this
        Agreement or otherwise. Indemnitee understands and acknowledges that the
        Corporation  has  undertaken  or  may  be  required  in  the  future  to
        undertake,  by the  Securities  and Exchange  Commission,  to submit the
        question of  indemnification  to a court in certain  circumstances for a
        determination  of  the  Corporation's   right  under  public  policy  to
        indemnify Indemnitee.

8.04    AMENDMENT.  This  Agreement  may not be modified or amended  except by a
        written  instrument  executed  by or on  behalf  of each of the  parties
        hereto.

8.05    WAIVERS.  The  observance  of any term of this  Agreement  may be waived
        (either generally or in a particular  instance and either  retroactively
        or  prospectively)  by the party entitled to enforce such term only by a
        writing signed by the party against which such waiver is to be asserted.
        Unless otherwise  expressly provided herein, no delay on the part of any
        party hereto in exercising any right, power or privilege hereunder shall
        operate  as a waiver  thereof,  nor shall any  waiver on the part of any
        party  hereto of any right,  power or privilege  hereunder  operate as a
        waiver of any other right,  power or privilege  hereunder  nor shall any
        single or

<PAGE>

        partial exercise of any right, power or privilege hereunder preclude any
        other or further  exercise  thereof or the  exercise of any other right,
        power or privilege hereunder.

8.06    ENTIRE  AGREEMENT.  This Agreement and the documents  referred to herein
        constitute the entire agreement  between the parties hereto with respect
        to the matters  covered hereby,  and any other prior or  contemporaneous
        oral or written understandings or agreements with respect to the matters
        covered hereby are superseded by this Agreement.

8.07    SEVERABILITY.  If any provision or provisions of this Agreement shall be
        held to be invalid,  illegal or unenforceable for any reason whatsoever,
        the validity,  legality and  enforceability of the remaining  provisions
        shall  not in any way be  affected  or  impaired  thereby;  and,  to the
        fullest  extent  possible,  the  provisions of this  Agreement  shall be
        construed so as to give effect to the intent manifested by the provision
        held invalid, illegal or unenforceable.

8.08    CERTAIN   ACTIONS   FOR   WHICH   INDEMNIFICATION   IS   NOT   PROVIDED.
        Notwithstanding any other provision of this Agreement,  Indemnitee shall
        not be entitled to indemnification or advancement of Expenses under this
        Agreement with respect to any Proceeding, or any Matter therein, brought
        or made by Indemnitee  against the Corporation or brought or made by the
        Corporation against Indemnitee.

8.09    NOTICES.   Promptly  after  receipt  by  Indemnitee  of  notice  of  the
        commencement of any action, suit or proceeding,  Indemnitee shall, if he
        anticipates  or  contemplates  making a claim for expenses or an advance
        pursuant to the terms of this  Agreement,  notify the Corporation of the
        commencement of such action, suit or proceeding; provided, however, that
        any delay in so notifying the Corporation  shall not constitute a waiver
        or release by  Indemnitee  of rights  hereunder and that any omission by
        Indemnitee  to  so  notify  the   Corporation   shall  not  relieve  the
        Corporation from any liability that it may have to Indemnitee  otherwise
        than under this Agreement.  Any  communication  required or permitted to
        the  Corporation  shall be addressed to the Secretary of the Corporation
        and any such  communication  to  Indemnitee  shall be  addressed  to the
        Indemnitee's  address as shown on the  Corporation's  records unless the
        Indemnitee  specifies  otherwise  and shall be  personally  delivered or
        delivered by overnight mail delivery. Any such notice shall be effective
        upon receipt.

8.10    GOVERNING LAW. This Agreement  shall be construed in accordance with and
        governed  by the laws of the  State of  Delaware  without  regard to any
        principles of conflict of laws that, if applied, might permit or require
        the application of the laws of a different jurisdiction.

8.11    HEADINGS.  The Article and Section  headings in this  Agreement  are for
        convenience  of  reference  only,  and  shall  not be deemed to alter or
        affect the

<PAGE>

        meaning or interpretation of any provisions hereof.

8.12    COUNTERPARTS.  This Agreement may be executed in  counterparts,  each of
        which shall be deemed to be an original and all of which  together shall
        be deemed to be one and the same instrument.

8.13    USE OF CERTAIN TERMS.  As used in this  Agreement,  the words  "herein,"
        "hereof,"  and  "hereunder"  and other words of similar  import refer to
        this  Agreement  as  a  whole  and  not  to  any  particular  paragraph,
        subparagraph,  section,  subsection, or other subdivision.  Whenever the
        context may require,  any pronoun used in this  Agreement  shall include
        the corresponding masculine,  feminine or neuter forms, and the singular
        form of nouns,  pronouns  and verbs  shall  include  the plural and vice
        versa.

        IN WITNESS WHEREOF,  this Agreement has been duly executed and delivered
to be effective as of the date first above written.

                               LIMCO-PIEDMONT INC.

                                    By:     /s/ Dov Zeelim
                                            ----------------------------
                                    Name:   Dov Zeelim
                                            ------------------------------------
                                    Title:  Chairman
                                            ------------------------------------

                                    SHAUL MENACHEM

                                    By:     /s/ Shaul Menachem
                                            ------------------------------------
                                    Name: Shaul MenachemExhibit 10.13

                     MEMBERSHIP INTEREST PURCHASE AGREEMENT

      MEMBERSHIP INTEREST PURCHASE AGREEMENT (the "Agreement") dated the 24th
day of May, 2005 between Limco-Airepair, Inc., an Oklahoma corporation
(hereinafter referred to as the "Purchaser"), and Claude L. Buller, Thomas W.
Ferrell, Paul R. Hilliard and Jim Taylor (collectively referred to as
"Members") and Piedmont Aviation Component Services, L.L.C., a North Carolina
limited liability company (hereinafter referred to as "Company", and
collectively with the Members referred to as "Seller").

                                    RECITALS

      A. Members are the owners of all outstanding ownership units evidencing
their membership interest in the Company as have been issued by the Company as
follows:

                                        Units Owned     Percentage
            Claude L. Buller               9,900            33%
            Paul R. Hilliard               9,900            33%
            Thomas W. Ferrell              9,900            33%
            Jim Taylor                       300            01%
                                        --------        ------
            TOTAL ISSUED AND
            OUTSTANDING UNITS             30,000           100%

which units of membership interests are fully paid and non assessable by the
Company.

      B. The Company conducts business as an authorized and fully licensed
and/or authorized or recommended aviation Repair Station or authority for, among
others, Honeywell Aerospace, McCauley and Hartzell Propeller, in the overhaul,
repair, maintenance, service and supply of, among other products, Propellers,
Landing Gear and APU/LRU units, and products made in its machine shop with metal
finishing capability, as well as supplying parts through brokerage some of which
products and activities are limited in scope by the United States Department of
Transportation, Federal Aviation Administration Air Agency Certificate Nos.
QKPR504X (issued August 10, 2004) and QWPR503X (issued September 21, 2004), all
of which licenses, certificates and authorities are fully and properly issued
and are not now suspended, revoked, or in default or under suspension or
revocation proceedings or notifications. (hereinafter referred to as the
"Company's Business")

      C. The Purchaser desires to purchase all units of membership interest from
the Members free and clear of any and all liens, judgments, orders, decrees or
encumbrances of any kind in order to have 100% ownership of the Company and thus
acquire all of the Company's business free an clear of all liens debts,
obligations of whatever kind or character except for those obligations
specifically assumed by the Purchaser as are hereinafter described in this
Agreement (e.g., obligations identified in the audited financial statement of
December 31, 2004 and acquired in the normal course of business since that date
to date of Closing as is specifically described hereinafter).

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
PAGE 2

      D. Upon execution of this Agreement by the parties hereto, the foregoing
recitals A, B, and C shall be deemed to be true and correct and to form a
material part of the inducement for Purchaser to enter this Agreement.

      NOW, THEREFORE, in consideration of the covenants, agreements,
representations, and warranties contained in this Agreement, the parties hereto
hereby agree as follows:

                                   ARTICLE I.
                   PURCHASE AND SALE OF MEMBERSHIP INTERESTS;
                   COMPANY'S BUSINESS; PURCHASE PRICE; CLOSING

      1.1 PURCHASE AND SALE OF MEMBERSHIP INTERESTS. Subject to the terms and
conditions of this Agreement, on the Closing Date (as defined herein) the
Members shall sell, transfer, convey, assign, and deliver to the Purchaser, and
the Purchaser shall purchase, acquire, and accept from the Members, all of the
Member's right, title, and interest in and to the membership interest (also
referred to as "ownership units") of the Company (and any evidence of such
ownership such as certificates), the purpose being to vest in the Purchaser
title to all of the ownership units, right and interest in the Company; the
Purchaser thereby becoming the sole member and owner of the Company, and as such
indirectly acquiring all of the assets owned and controlled by the Company,
inclusive of any and all intellectual property, trade names, patents,
copyrights, proprietary information, trade secrets, rolling stock, equipment,
inventory, goods, materials of every kind as are used, employed and stored for
the purpose of operating the Company's Business.

      1.2 EXCLUDED ASSETS. No assets owned by the Company are excluded from this
sale.

      1.3 ASSUMPTION OF LIABILITIES OR OBLIGATIONS. Notwithstanding anything to
the contrary in this Agreement, the Company shall retain and remain obligated
for and the Purchaser, as the sole member and owner of the Company, shall assume
all liabilities or obligations of the Company accruing, accrued and as are
disclosed in the Audited Financials dated December 31, 2004, as well as those
debts and obligations entered into or incurred in the normal course of operating
the business of the Company from and after December 31, 2004 until Closing, and
as are fully set forth on the monthly Financial Statements of the Company since
December 31, 2004 (which have been provided to the Purchaser prior to Closing),
or as are recorded in Company's normal business records, (e.g., accounts
payable, payroll ledger and the like records has have been supplied to the
Purchaser prior to Closing) and/or the DISCLOSURE SCHEDULE 1.3 ASSUMED DEBTS AND
OBLIGATIONS, which is attached and made a part hereof. No other liabilities of
the Company are assumed and shall be deemed to be undisclosed liabilities and
subject to the indemnity provisions of Article IX of this Agreement in the event
of subsequent claims for payment lodged against the Purchaser.

            (a) At Closing, Purchaser shall pay and satisfy in full all
financial obligations of the Company under that Promissory Note executed by the
Company and payable to Blue Ridge Investors, II Limited Partnership, dated
November 18, 2002, in the original amount of $2,000,000.00, as the same may have
been modified or amended from time to time.

                                        2

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
PAGE 3

            (b) At Closing, Purchaser shall pay in full and satisfy all
obligations of the Company under that Credit and Security Agreement executed by
the Company, as Borrower, and Whitehall Business Credit Corporation, as Lender,
on November 15, 2002, and the documents and instruments pursuant thereto,
including that Revolving Credit Note in the original principal amount of
$7,500,000.00; that Term Loan Note in the original principal amount of
$675,000.00; and that Capital Expenditures Loan Note in the original principal
amount of $500,000.00, as the foregoing may have been modified or amended from
time to time. At Closing, the aggregate amount of the obligations under the
above-described Whitehall loan shall not exceed $7,500,000.00.

      1.4 PURCHASE PRICE. The aggregate consideration for the Purchase of the
Membership Interests and Company's Business transferred to Purchaser
("Transferred Membership Interest") shall be $5,500,000 payable in cash or
certified funds at Closing.

                                   ARTICLE II.
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

      Except as otherwise set forth in the schedules attached to this Agreement
by reference to specific sections of this Agreement (hereinafter collectively
referred to as the "DISCLOSURE SCHEDULE"), the Seller represents and warrants to
the Purchaser as set forth below:

      2.1 ORGANIZATION AND GOOD STANDING. The Company is a limited liability
company duly organized, validly existing, and in good standing under the laws of
the State of North Carolina, and (a) is duly qualified to transact business as a
limited liability company and is in good standing in every other jurisdiction
within the United States in which the conduct of its business requires it to be
so qualified, (b) to the extent it has its EASA Repair Certificate, the Company
is duly qualified to transact business as a limited liability company and is in
good standing in every European jurisdiction in which the conduct of its
business requires it to be so qualified, and (c) to Seller's knowledge, is duly
qualified to transact business as a limited liability company and is in good
standing in every other jurisdiction outside of the United States and Europe in
which the conduct of its business requires it to be so qualified. Copies of the
Articles and/or Certificate of Organization or Formation and the Operating
Agreement of the Company and all amendments thereto as presently in effect, as
well as any minutes of Members' or managers' meetings, and requisite notices and
or waivers of notice fully endorsed have been delivered to the Purchaser and are
complete and correct as of the date hereof.

      2.2 AUTHORIZATION. Subject to receiving the approval of the Company's
managers, the Seller has full power and authority to enter into this Agreement,
both individually, and as authorized by the Members and managers of the Company
and as is allowable under the Company's Operating Agreement), inclusive of all
exhibits and schedules hereto, and all agreements contemplated herein (this
Agreement and all such exhibits, schedules, and other agreements being
collectively referred to herein as the "Acquisition Documents"), to perform its
obligations hereunder and there under, to assign, transfer, sale and convey the
units of Membership Interest purchased hereunder, and to carry out the
transactions

                                        3

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MEMBERSHIP INTEREST AGREEMENT
PAGE 4

contemplated hereby and thereby. The Managers of the Company have taken, or will
take before the Closing Date, all actions required by law, its Operating
Agreement or otherwise to authorize (i) the execution and delivery of this
Agreement and the other Acquisition Documents, and (ii) the performance of its
obligations hereunder and there under. This Agreement has been duly executed and
delivered by the Seller and upon the execution and delivery of the remaining
Acquisition Documents by a duly authorized Members and managers of the Company,
the remaining Acquisition Documents will have been duly executed and delivered
by the Seller, and this Agreement is and such other Acquisition Documents will
be, upon due execution and delivery thereof, the legal, valid, and binding
obligations of the Seller enforceable according to their terms

      2.3 TITLE TO OWNERSHIP UNITS TRANSFERRED. Except as set forth below in
this Section 2.3, the Members own and have good and marketable title to all
ownership units evidencing their Transferred Membership Interest, free and clear
of all Liens. Seller hereby specifically discloses to Buyer (a) that Blue Ridge
Investors, II Limited Partnership holds a warrant to acquire additional
membership units in the Company, (ii) that there are restrictions on the
transfer of the Membership Interest contained in the Company's Operating
Agreement, and (iii) that there are rights of first refusal and restrictions on
the transfer of the Membership Interest contained in that Loan and Purchase
Agreement between the Company and Blue Ridge Investors, II Limited Partnership,
dated November 18, 2002, and an option in favor of Member Jim Taylor to obtain
up to five percent (5%) of all outstanding Membership Interest. As specified in
Section 6.4, it is a condition precedent to Closing this Agreement that (i) the
warrant and any other rights or interests in the Company held by Blue Ridge
Investments II, Limited Partnership shall be terminated and released and (ii)
Jim Taylor terminate and release any and all option rights he may have to
acquire additional units of ownership or future Membership Interests.

      2.4 TITLE TO PROPERTIES; ABSENCE OF LIENS AND ENCUMBRANCES. The Company
has good and marketable title to or a valid leasehold interest in all of its
properties and assets, tangible and intangible, free and clear of all liens,
mortgagees and encumbrances except for (i) those set forth in the DISCLOSURE
SCHEDULE 2.4, LIST OF LIENS, MORTGAGES AND OTHER ENCUMBRANCES attached, (ii)
liens for current taxes not yet due and payable, and (iii) such other minor
imperfections of title and encumbrances, if any, that do not, in the aggregate,
have a material adverse effect on the Company's Business, assets, or financial
condition of the Company (collectively hereinafter referred to as the "Permitted
Liens"). To Seller's knowledge, there is no material asset used or required by
the Company in the conduct of Company's Business, which is not owned by the
Company or licensed or leased to it pursuant to one of the licenses or leases
listed in DISCLOSURE SCHEDULE 2.6, LIST OF LEASES AND LICENSES.

      2.5 OWNED REAL PROPERTY. The Company and Sellers own no right, title or
interest in or to any real property (other than leasehold interests) nor do they
have any options to purchase any real property used by the Company in
conjunction with operation and conduct of Company's Business.

      2.6 LEASES. DISCLOSURE SCHEDULE 2.6, LIST OF LEASES AND LICENSES attached
hereto contains a complete list of (i) each lease pursuant to which the Company
leases, as lessee, any real property interest and (ii) each lease pursuant to
which the Seller leases, as lessee, any

                                        4

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MEMBERSHIP INTEREST AGREEMENT
PAGE 5

type of property (real or personal) in which the Purchaser's inability to
acquire the Seller's rights there under would have a material adverse effect
upon the business assets or financial condition of the Company and in which the
rental payments pursuant to such lease exceed $ 10,000 per annum. Each such
lease is valid and binding and is in full force and effect, subject only to
exceptions based on bankruptcy, insolvency, or similar laws of general
application, and there are no existing defaults by any party to any such lease,
or any condition, event, or act known to the Seller which, with notice or lapse
of time or both, would constitute such a default. Without limiting the
foregoing, the Seller is not in default under any of such leases, and the Seller
has not received any notice from any person asserting a default by the Seller
under any such lease.

      2.7 NO VIOLATION. Except as set forth on DISCLOSURE SCHEDULE 2.7, none of
(i) the execution and delivery of this Agreement or any of the other Acquisition
Documents by the Seller, (ii) the performance by the Seller of its obligations
hereunder or there under, (iii) the consummation of the transactions
contemplated hereby or thereby after the Closing, will (A) violate any provision
of the Certificate of Organization or Formation Articles of the Company, or the
Operating Agreement under which the Company operates; (B) violate, or be in
conflict with, or constitute a default under or breach of, or permit the
termination of, or cause the acceleration of the maturity of, any indenture,
mortgage, contract, commitment, debt, or obligation of the Seller, which
violation, conflict, default, breach, termination, or acceleration, either
individually or in the aggregate with all other such violations, conflicts,
defaults, breaches, terminations, and accelerations, would have a material
adverse effect on the operations, business, assets, or financial condition of
the Company or the Transferred Member Interests; (C) except for the consent of
Managers, require the consent of any other party to or result in the creation or
imposition of any Lien upon any property or assets of the Company or the
Transferred Membership Interest under any indenture, mortgage contract,
commitment, debt or obligation of or to which the Seller is a party or by which
the Seller is bound; (D) violate any statute, law, judgment, decree, order,
regulation, or rule of any court or governmental authority to which the Seller
or the Transferred Membership Interests are subject; or (E) result in the loss
of any material license, privilege, or certificate benefiting the Company.
Purchaser acknowledges and agrees that the items listed on Disclosure Schedule
2.7 are agreements and instruments to which the Company is a party (or permits
and licenses held by the Company), which may be violated upon transfer of the
Transferred Membership Interest by the Members to Purchaser, and for which
Purchaser may need to obtain consent, approval, or authorization. As specified
in Section 5.4, it is a condition of this Agreement, it is a condition precedent
to Closing that Purchaser obtain such consents, approvals, or authorizations.

      2.8 CONSENTS AND APPROVALS OF GOVERNMENTAL AUTHORITIES. Except as set
forth on DISCLOSURE SCHEDULE 2.8, no consent, approval, or authorization of, or
declaration, filing, or registration with, any governmental or regulatory
authority is required to be made or obtained by the Seller in connection with
the execution, delivery, and performance of this Agreement or any of the other
Acquisition Documents by the Seller. Purchaser acknowledges and agrees that the
items listed on Disclosure Schedule 2.8 are permits and licenses held by the
Company, for which Purchaser may need to obtain governmental consent, approval,
or authorization. As specified in Section 5.4, it is a condition of this
Agreement, it is a condition precedent to Closing that Purchaser obtain such
consents, approvals, or authorizations.

                                        5

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MEMBERSHIP INTEREST AGREEMENT
PAGE 6

      2.9 FINANCIAL STATEMENTS.

            (a) DELIVERY. THE Seller has delivered to the Purchaser true and
complete copies of the Company's audited financial statements including balance
sheets, statements of operations and retained earnings, and statements of
changes in financial position, as of and for the years ended December 31, 2004
(the "Audited Financials") as well as its un-audited financial statements,
including balance sheets, statements of operations and retained earnings, and
statements of changes in financial position, as of and for the months and/or
quarters from and after December 31, 2004 until the month preceding the month
Closing occurs, and thereafter internally generated financial statements up to
the date of Closing (such un-audited financial statements (income and expense
statement, as well as the balance sheet) of the Company and any notes thereto
being hereinafter referred to as the Company's "Financial Statements."

            (b) ACCURACY. The Audited Financials, Financial Statements are
materially true and correct and fairly present the financial condition of the
Company as of the respective dates thereof and the results of operations of the
Company for the periods then ended in accordance with generally accepted
accounting principles ("GAAP") applied on a consistent basis throughout the
periods involved.

      2.10 ABSENCE OF CERTAIN CHANGES. Since the most recent period of time for
which the Financial Statements apply and until the date of Closing, the Company
has not:

            (a) Suffered any material adverse change in its working capital,
condition (financial or otherwise), assets, liabilities, reserves, business
operations, or prospects;

            (b) Suffered any damage, destruction, or loss, whether covered by
insurance or not, materially adversely affecting its business operations, or
prospects, assets, or condition, financial or otherwise;

            (c) Permitted or allowed any of its property or assets (real,
personal, or mixed, tangible or intangible) to be subjected to any mortgage,
pledge, security interest, conditional sale, or other title retention agreement,
encumbrance, lien, easement, claim, right of way, warrant, option, or charge of
any kind (individually and collectively hereinafter referred to as a "Lien"),
except Permitted Liens;

            (d) Created or incurred any liability (fixed, absolute, accrued,
contingent, or otherwise) except for unsecured current liabilities incurred for
other than money borrowed, and liabilities under contracts entered into in the
ordinary course of business and for amounts and for terms consistent with past
practice;

            (e) Canceled or compromised any debts, or waived or permitted to
lapse, any material claims or rights, or sold, transferred, or otherwise
disposed of any of its properties or assets (real, personal, or mixed, tangible
or intangible), except in the ordinary course of business and consistent with
past practice;

            (f) Transferred or granted any concessions, leases, licenses, or
agreements with respect to or disposed of or permitted to lapse any rights to
the use of any patent,

                                        6

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MEMBERSHIP INTEREST AGREEMENT
PAGE 7

registered trademark, servicemark, trade name, or copyright material to the
business of the Company (all of which are listed on Schedule 2.11), or disposed
of or disclosed to any person any material, trade secret, formula, process, or
know-how not theretofore a matter of public knowledge;

            (g) Entered into any material commitment or transaction not in the
ordinary course of business and consistent with past practice or made any
capital expenditures or commitments for any additions to property, plant, or
equipment that in the aggregate exceed $5,000;

            (h) Paid, loaned, or advanced any amount to, or sold, purchased,
transferred, or leased any properties or assets (real, personal, or mixed,
tangible or intangible) to or from, or entered into any agreement or arrangement
with, any of its Company Members, managers, or employees, or any family member
of any of its members, managers or employees, or any partnership, company,
corporation or other entity controlled by, controlling, or under common control
with it, or any partner, officer, director or employee of any such corporation
or other entity, or any such individual's family members;

            (i) Purchased, redeemed, issued, sold, or otherwise acquired or
disposed of, directly or indirectly, any membership interests, options,
warrants, bonds, notes, or other securities, or rights to purchase or convert
into any securities of the Company;

            (j) Declared or paid, or set aside funds in anticipation of, any
dividends or other distributions of Company funds for any Member or Manager of
the Company;

            (k) Made any acquisition or disposition of assets except in the
ordinary course of business, consistent with past practice;

            (l) Introduced any material change with respect to the operation of
its business, including, without limitation, its method of accounting;

            (m) Except for sales of inventories in the ordinary course of
business, sold or otherwise disposed of, or entered into or agreed to enter into
any agreement or other arrangement to sell or otherwise dispose of, any of its
assets, properties, or rights or any agreement or other arrangement which
requires the consent of any party to the transfer and assignment of any such
assets, properties, or rights;

            (n) Paid or agreed to pay any bonus or extraordinary payment to any
employee or Member (including payment by the Company of attorney fees related to
this transaction) or changed or agreed to change in any material respect the
compensation of any employee; or

            (o) Agreed, whether in writing or otherwise, to take any action
described in this Section.

      2.11 PATENTS, TRADEMARKS, TRADE NAMES. Except as set forth on DISCLOSURE
SCHEDULE 2.11, the Seller owns, is licensed, or otherwise has the full right to
use all patents, trademarks, servicemarks, trade names, and copyrights used in
the business of the Company as currently

                                        7

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MEMBERSHIP INTEREST AGREEMENT
PAGE 8

conducted. DISCLOSURE SCHEDULE 2.11, INTELLECTUAL MATERIALS OWNED OR CONTROLLED
BY COMPANY, attached hereto contains a complete and accurate list of (i) all
patents, trademarks, servicemarks, trade names, copyrights, technology,
know-how, recipes, and processes used or proposed to be used by the Seller in
operation of the Company's Business, all applications therefore, and all
licenses and other agreements relating thereto, and (ii) all agreements relating
to technology, know-how, recipes, or processes that the Seller is licensed or
authorized to use by others or licenses or authorizes others to use. Except as
set forth in any of such licenses or agreements, the Seller has the sole and
exclusive right to use its patents, trademarks, servicemarks, trade names,
copyrights, technology, know-how, recipes, and processes identified in
DISCLOSURE SCHEDULE 2.11 hereto, and no consent of any third party is required
for the use thereof by the Company upon completion of the transfer of the
Transferred Membership Interest to Purchaser. No claims have been asserted by
any person to the use of any such patents, trademarks, servicemarks, trade
names, copyrights, technology, know-how, recipes, or processes, or challenging
or questioning the validity or effectiveness of any such license or agreement,
and the Seller knows of no valid basis for any such claims. The Seller has not
received any notice or is aware of any facts or alleged facts indicating that
the use of such patents, trademarks, servicemarks, trade names, copyrights,
technology, know-how, recipes, or processes by the Company infringes on the
rights of any other person. No additional proprietary rights other than those
listed on Disclosure SCHEDULE 2.11 hereto are necessary or material to the
conduct the Company's Business.

      2.12 LITIGATION. DISCLOSURE SCHEDULE 2.12, LITIGATION AND POTENTIAL
CLAIMS, which is attached hereto sets forth all actions, claims, proceedings,
and investigations ("Actions"), including without limitation Actions for
personal injuries, products liability, or breach of warranty arising from
products sold by the Company, pending or to Seller's knowledge threatened
against the Company, any properties or rights of the Company (including, without
limitation, the patents, trademarks, servicemarks, trade names, copyrights,
technology, know-how, recipes, or processes listed in DISCLOSURE SCHEDULE 2.11
hereto), or the transactions contemplated by this Agreement or any other
Acquisition Document before any court, arbitrator, or administrative or
governmental body. To the best knowledge of the Seller, no state of facts exists
or has existed that would constitute grounds for the institution of any Action
against the Company or against any properties or rights of the Company or the
transactions contemplated by this Agreement or any other Acquisition Document.
The Seller is not subject to any judgment, order, or decree entered in any
lawsuit or proceeding that has materially adversely affected, or that can
reasonably be expected to materially adversely affect, the transactions
contemplated by this Agreement, the Seller, or the Transferred Membership
Interest in the Company, including, without limitation, the Company's Business
practices and its ability to acquire any property or conduct business in any
way.

      2.13 TAX RETURNS AND PAYMENTS. All of the tax returns and reports of the
Company or respecting the operations of the Company required by law to be filed
on or before the date hereof have been duly and timely filed or extended and all
taxes shown as due thereon have been either paid or are accrued in liquid form
and saved for future payment thereof. There are in effect no waivers of any
applicable statute of limitations related to such returns. No liability for any
tax will be imposed upon the Transferred Membership Interest in the Company or
the Company's Business or its assets with respect to any period before the
Closing Date for which there is not an adequate reserve reflected in the balance
sheet and

                                        8

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MEMBERSHIP INTEREST AGREEMENT
PAGE 9

held in cash form. The provisions of this Section 2.13 shall include, without
limiting the generality of this Section, all reports, returns, and payments due
under all federal, state, or local laws or regulations relating to income,
sales, use and withholding taxes, withholding obligations, unemployment
insurance, Social Security, workers' compensation, and other obligations of the
same or of a similar nature. The Seller is not subject to any open audit in
respect of its taxes, no deficiency assessment or proposed adjustment for taxes
is pending, and the Seller has no knowledge of any liability, whether or not
proposed, for any tax with respect to any period through the date hereof to be
imposed upon any of its properties or assets for which there is not an adequate
reserve (in cash) reflected in its respective Audited Financials and Financial
Statements.

      2.14 BANKS. DISCLOSURE SCHEDULE 2.14, BANK ACCOUNTS, which is attached
lists all the names and locations of all banks, trust companies, savings and
loan associations, and other financial institutions at which the Company
maintains accounts or lock boxes and the corresponding account numbers, if any,
relating to the Company and the names of all persons authorized to draw on such
accounts or who have access to such boxes.

      2.15 INSURANCE. DISCLOSURE SCHEDULE 2.15, INSURANCE POLICIES, which is
attached contains (i) a complete and accurate description of the Company's
self-insurance practices and items covered by such self-insurance, if any and
(ii) a complete list of all material policies of fire, liability, workers'
compensation, products liability and other forms of insurance owned or held by
or for the benefit of the Company (collectively, the "Insurance Policies"). The
Seller has delivered to the Purchaser true and complete copies of the Insurance
Policies, along with copies of all past Insurance Policies reasonably available
after due and diligent search. To Seller's knowledge the Company's tangible real
and personal property and assets, whether owned or leased, are insured by
reputable insurance companies licensed to do business in the state in which such
property is located in such amounts customarily carried by comparable
businesses, and as is required by any agreements with licensors and/or customers
except to the extent that any failures to insure would not, in the event of a
loss, have a material adverse effect upon the Company's Business. All such
Insurance Policies are and will remain in full force and effect through the
Closing Date and, to the best knowledge of the Seller; there is no notice of or
basis for any modification, suspension, termination, or cancellation of any
Insurance Policy.

      2.16 CONTRACTS AND COMMITMENTS.

            (a) DISCLOSURE SCHEDULE 2.16, CONTRACT COMMITMENTS, which is
attached hereto, contains a complete list of each contract and commitment of the
Seller that is material to the operations, assets, and business or financial
condition of the Company or that by its terms can reasonably be expected to
require future payment by or to the Company of $10,000 or more, including but
not limited to the following:

                  (i) All employment contracts and commitments between the
Company and its employees, other than those terminable by the Company at will
and without payment or penalty;

                  (ii) All collective bargaining agreements and union contracts
to which the Company is a party;

                                        9

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
PAGE 10

                  (iii) All contracts or commitments, written or oral, with
distributors, brokers, manufacturer's representatives, sales representatives,
service or warranty representatives, customers, and other persons, firms, or
corporations engaged in the sale or distribution of the Company's products or
services;

                  (iv) All purchase orders issued by the Company in excess of
$20,000, all sales orders received by the Seller in excess of $25,000 and all
purchase or sales orders that call for delivery or performance on a date more
than one year from the date of this Agreement;

                  (v) All contracts and arrangements between the Company or any
person or entity that controls, is controlled by, or is under common control
with, the Seller or any family member of any such person (such entity or person,
being hereinafter referred to as an "Affiliate");

                  (vi) All contracts and arrangements, written or oral, under
which the Company is either a bailor or bailee including without limitation
contracts for the bailment of Aircraft;

                  (vii) All agreements pursuant to which the Company acquired
its Trade Name or a substantial portion of its assets; and

                  (viii) All other contracts and commitments of the Company
(excluding leases for the purpose of this Section 2.16(a)) and instruments
reflecting obligations for borrowed money or for other indebtedness or
guarantees thereof.

            (b) At the Purchaser's request, the Seller shall deliver or cause to
be delivered to the Purchaser full and complete copies of the documents
identified above and all such other agreements and instruments as the Purchaser
may reasonably request.

            (c) The Seller is not a party to any written agreement that would
restrict it from carrying on any line of business anywhere in the world.

            (d) Each of the contracts listed on DISCLOSURE SCHEDULE 2.16 is
valid and binding, and each of the contracts binding on the Company (whether or
not listed on DISCLOSURE SCHEDULE 2.16) has been entered into in the ordinary
course of business. To Seller's knowledge, neither the Company nor any other
party hereto is in default under or in breach or violation of, and neither the
Company nor any other party hereto has received notice of any asserted claim of
default by any other party under, or a breach or violation of, any of the
contracts, agreements, and commitments described in this Section 2.16, including
without limitation, any licensing or usage agreements with respect to the
technology that the Company now uses or currently intends and plans to use.

      2.17 DISTRIBUTORS AND CUSTOMERS. To the Seller's best knowledge, it enjoys
good working relationships under all of its distributor, sales representative,
and similar agreements necessary to the normal operation of Company's Business.
Except as set forth on DISCLOSURE SCHEDULE 2.17, the Seller has no knowledge or
basis for knowledge that any customer or group of related customers (i.e., any
customers who are directly or indirectly

                                       10

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
PAGE 11

through one or more intermediaries under common control), who, for the fiscal
year ended 2004 and during each of the two preceding fiscal years accounted for
more than 10% in aggregate volume of gross sales of the Company, has terminated
or expects to terminate a material portion of its normal business with the
Company.

      2.18 FRINGE BENEFIT PLANS.

            (a) LIST OF PLANS. DISCLOSURE SCHEDULE 2.18, BENEFIT PLANS, which is
attached, contains a true and complete list and summary description of, and the
Company has delivered to the Purchaser true and complete copies of, each
pension, retirement, profit-sharing, stock purchase, stock option, vacation,
deferred compensation, bonus or other incentive plan, or other employee benefit
program, arrangement, agreement, or understanding, or medical, vision, dental,
or other health, plan, or life insurance or disability plan, or any other
employee benefit plans, including, without limitation, any "employee benefit
plan" as defined in section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended ("ERISA"'), whether formal or informal, written or oral, to
which the Seller contributes, or is a party, or is bound, or under which it may
have liability, and under which employees or former employees of the Company (or
their beneficiaries) are eligible to participate or derive a benefit. Each
employee benefit plan which is a "group health plan" as such term is defined in
section 162(i)(2) of the Internal Revenue Code of 1986, as amended (the "Code"),
satisfies the applicable requirements of section 4980B of the Code. Except as
described on DISCLOSURE SCHEDULE 2.18, the Company does not have the intention
or commitment, whether legally binding or not, to create any additional plan,
practice, or agreement, or to modify or change any existing plan, practice, or
agreement that would affect any employee or terminated employee of the Seller,
and benefits under all employee benefit plans are as represented and have not
been and will not be increased after the date on which documents have been
provided.

            (b) REPRESENTATIONS WITH RESPECT TO PLANS. Except as disclosed on
DISCLOSURE SCHEDULE 2.18, the Company does not sponsor, maintain, or contribute
to any employee benefit plans within the meaning of section 3(3) of ERISA, which
are subject to Title I of ERISA (the "ERISA Plans"). Each pension plan within
the meaning of section 3(2) of ERISA ("Pension Plan") is identified on
DISCLOSURE SCHEDULE 2.18. The following representations are made with regard to
the ERISA Plans or the Pension Plans, if any and so limited:

                  (i) The Company does not contribute to, or have an obligation
to contribute to, or has at any time contributed to or had an obligation to
contribute to, sponsor, or maintain, or at any time has sponsored or maintained,
a multiemployer plan within the meaning of section 3(37) of ERISA and the
Company has not incurred any withdrawal liability, or suffered a "complete
withdrawal" or a "partial withdrawal" with respect to a multiemployer plan;

                  (ii) The Pension Plans are qualified plans, have remained
qualified under the Code since inception and have been determined by the
Internal Revenue Service ("IRS") to be so qualified, and the IRS has taken no
action to revoke such determination or qualification;

                                       11

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
PAGE 12

                  (iii) The Company has, in all material respects, performed all
obligations, whether arising by operation of law, contract, or past custom,
required to be performed under or in connection with the ERISA Plans, and the
Company does not have any knowledge of any default or violation by any other
party with respect to the ERISA Plans;

                  (iv) To Seller's knowledge, the Company has complied in all
material respects with ERISA, and, where applicable, the Code, regarding the
ERISA Plans;

                  (v) All reports and disclosures relating to the ERISA Plans
required to be filed with or furnished to governmental agencies, plan
participants, or plan beneficiaries have been or will be filed or furnished in
accordance with applicable law in a timely manner;

                  (vi) There are no Actions pending (other than routine claims
for benefits) or, to the knowledge of the Seller threatened, against any ERISA
Plan or against the assets funding any ERISA Plan;

                  (vii) Full payment has been or will be made, in accordance
with section 404(a)(6) of the Code, of all amounts which the Company is required
to pay under the terms of the Pension Plans as contributions to the Pension
Plans as of the last day of the most recent plan year of the Pension Plans ended
before the date of this Agreement, and neither the Pension Plans nor the trusts
established there under have incurred any "accumulated funding deficiency" (as
defined in section 302 of ERISA and section 412 of the Code), whether or not
waived, as of the last day of the most recent plan year of the Pension Plans
ended before the date of this Agreement;

                  (viii) The Company maintains adequate accruals on its books to
reflect accrued contributions to each of the Pension Plans for the current plan
year and to reflect accrued medical and dental claims incurred, but not yet
paid, under the terms of any ERISA Plan which is a welfare plan within the
meaning of section 3(1) of ERISA (a "Welfare Plan");

                  (ix) No transaction has occurred with respect to the Pension
Plans or the assets thereof which could result in the imposition on the Seller
or the administrators or trustees under the Pension Plans, either directly or
indirectly, of taxes or penalties imposed under section 4975 of the Code or
section 502(i) of ERISA;

                  (x) With respect to the Pension Plans, regardless of whether
such plans are subject to Title IV of ERISA, no termination or reportable event,
as defined in section 4043(b) of ERISA has occurred or is anticipated to occur;

                  (xi) As of the most recently dated plan statement received by
the Company, the fair market value of assets of each Pension Plan which is a
"defined benefit plan" as defined in section 3 (35) of ERISA ("Defined Benefit
Plan") equals or exceeds the aggregate present value of the accrued benefits
there under of all participants, computed on a "plan termination basis," based
upon actuarial assumptions which are reasonable in the aggregate;

                                       12

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MEMBERSHIP INTEREST AGREEMENT
PAGE 13

                  (xii) Other than applications for determination, no action is
pending with respect to the Pension Plans before the IRS, the Department of
Labor, the Pension Benefit Guaranty Corporation ("PBGC") or before any state or
local governmental agency;

                  (xiii) No act or omission constituting a breach of fiduciary
duties has occurred with respect to the ERISA Plans or the assets thereof, which
could subject the Seller or the Purchaser, either directly or indirectly, to any
liability;

                  (xiv) No liability under Title IV of ERISA has been incurred
by the Company which has been satisfied in full and the Company does not know of
any facts or circumstances which might give rise to any liability of the Company
under Title IV of ERISA which could reasonably be anticipated to result in any
claims being made against the Purchaser or the Seller by the PBGC;

                  (xv) The PBGC has not instituted any proceedings to terminate
any of the Pension Plans; and

                  (xvi) Each Welfare Plan is intended to meet currently
applicable requirements for tax-favored treatment under Subchapter B of Chapter
1 of the Code, is in compliance with such requirements, and if applicable, with
the requirements of sections 419 and 419A of the Code, and there is no
disqualified benefit (as such term is defined in section 4976(a) of the Code)
which would subject the Seller or the Purchaser to a tax under section 4976.

            (c) PLAN DOCUMENTS. The Seller has delivered to the Purchaser and
its counsel true and complete copies, if any, of (i) all documents governing the
ERISA Plans, including all amendments thereto which will become effective at a
later date, (ii) all agreements and arrangements listed on DISCLOSURE SCHEDULE
2.18, (iii) the latest IRS determination letter obtained with respect to each of
the Pension Plans, (iv) Form 5500 for the most recent completed plan year for
each of the ERISA Plans, together with all schedules forming a part thereof, (v)
the most recent actuarial valuation for any Defined Benefit Plan, (vi) any form,
other than Form 5500, required to be filed for the most recently completed plan
year for any Defined Benefit Plan with any governmental agency, (vii) all
summary plan descriptions relating to the ERISA Plans, (viii) the annuity
contracts funding obligations of any Defined Benefit Plan, and (ix) all
employment manuals.

      2.19 LABOR RELATIONS. No employee of the Company is represented by a labor
union or under a collective bargaining agreement, except as set forth on
DISCLOSURE SCHEDULE 2.19, COLLECTIVE BARGAINING AGREEMENTS, if any, and the
particular collective bargaining agreement or agreements have been delivered to
the Purchaser. No petition has been filed or proceedings instituted by any
employee or group of employees with any labor relations board seeking
recognition of a bargaining representative. There are no matters pending before
the National Labor Relations Board or any similar state or local labor agency,
and the Company is neither engaged in nor subject to any penalties or
enforcement action in respect of any unfair labor practices, and the Seller
believes that it enjoys good labor relations. There are no controversies or
disputes pending between the Company and any of its employees, except for such
controversies and disputes as do not and will not, individually or in the
aggregate, have a material adverse effect on its business, operations, assets,
prospects, or condition, financial or otherwise.

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MEMBERSHIP INTEREST AGREEMENT
PAGE 14

      2.20 ENVIRONMENTAL MATTERS.

            (a) For purposes of this Section 2.20, the property of the Seller
shall mean such property whether now or in the past owned or leased by it.
Additionally, for purposes of this Section 2.20, "Hazardous Substance" means (i)
a hazardous substance as defined in 42 U.S.C. Section 9601(14), as amended from
time to time, and all rules, regulations, and orders promulgated there under as
in effect from time to time, (ii) "hazardous waste" as defined in 42 U.S.C.
Section 6903(5), as amended from time to time, and all rules, regulations, and
orders promulgated there under as in effect from time to time, (iii) if not
included in (i) or (ii) above, "hazardous waste constituents" as defined in 40
C.F.R. Section 260.10, specifically including Appendix VII and VIII of Subpart D
of 40 C.F.R. Section 261, as amended from time to time, and all rules,
regulations, and orders promulgated there under as in effect from time to time,
and (iv) "source," "special nuclear," or "by-product material" as defined in 42
U.S.C. Section 3011, et seq., as amended from time to time, and all rules,
regulations, and orders promulgated there under as in effect from time to time.
Further, "Requirements of Law" shall mean all applicable federal, state, local,
or foreign laws, statutes, ordinances, rules, regulations, or court or
administrative orders or processes, or arbitrator's orders or processes.

            (b) Except as set forth on DISCLOSURE SCHEDULE 2.20 HAZARDOUS
SUBSTANCES, or as set forth in any and all reports, studies, plans, governmental
interventions, indemnity agreements, insurance policies or other documents
concerning the Hazardous condition of the property or Company's Business set
forth thereon or otherwise delivered to Purchaser, to Seller's knowledge, the
Seller is and has been in compliance with all Requirements of Law relating to
Hazardous Substances and applicable to any of its properties. Without limiting
the foregoing, (i) neither the operations of the Company nor the development,
manufacture, or sale of the processes, technology, results, or products of the
Company violate or have violated any Requirements of Law relating to air, soil,
water, or noise pollution, or the production, storage, processing, utilization,
labeling, transportation, disposal, emission, or other disposition of Hazardous
Substances, and (ii) to Seller's knowledge, the Company, or any current or
former owner, occupant or operator of any property at any time owned, leased, or
operated by the Seller for the Company's Business, or any portion thereof, has
never utilized any such property or any portion thereof in violation of any
environmental Requirements of Law, except those hazards specified in DISCLOSURE
SCHEDULE 2.20 HAZARDOUS SUBSTANCES, which is attached hereto, or as set forth in
any and all reports, studies, plans, governmental interventions, indemnity
agreements, insurance policies or other documents concerning the Hazardous
condition of the property or Company's Business set forth thereon or otherwise
delivered to Purchaser.

            (c) Except as set forth on DISCLOSURE SCHEDULE 2.20 HAZARDOUS
SUBSTANCES, or as set forth in any and all reports, studies, plans,
governmental interventions, indemnity agreements, insurance policies or other
documents concerning the Hazardous condition of the property or Company's
Business set forth thereon or otherwise delivered to Purchaser, to Seller's
knowledge, no discharge, release, spillage, uncontrolled loss, seepage, or
filtration of any Hazardous Substance or any fuel, gasoline, or other petroleum
product or by-product has occurred at, upon, or under any property at any time
owned, leased, or operated by the Seller in an amount that violates any
Requirements of Law.

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MEMBERSHIP INTEREST AGREEMENT
PAGE 15

            (d) Except as set forth on DISCLOSURE SCHEDULE 2.20 HAZARDOUS
SUBSTANCES, or as set forth in any and all reports, studies, plans, governmental
interventions, indemnity agreements, insurance policies or other documents
concerning the Hazardous condition of the property or Company's Business set
forth thereon or otherwise delivered to Purchaser, the Company does not utilize,
store, dispose of, treat, generate, process, transport, release, or own any
Hazardous Substance, nor has the Company ever done so.

            (e) The Seller has in a timely manner obtained all Licenses and
filed all reports required to be filed under or pursuant to any applicable
environmental Requirements of Law.

            (f) Except as set forth on DISCLOSURE SCHEDULE 2.20 HAZARDOUS
SUBSTANCES, or as set forth in any and all reports, studies, plans, governmental
interventions, indemnity agreements, insurance policies or other documents
concerning the Hazardous condition of the property or Company's Business set
forth thereon or otherwise delivered to Purchaser, to Seller's knowledge, no
property at any time owned, leased, or operated by the Company now contains, or,
to the knowledge of the Seller, in the past has contained, any underground or
aboveground tanks for the storage of any Hazardous Substance or fuel oil,
gasoline, or any other petroleum product or by-product.

            (g) Except as set forth on DISCLOSURE SCHEDULE 2.20 HAZARDOUS
SUBSTANCES, or as set forth in any and all reports, studies, plans, governmental
interventions, indemnity agreements, insurance policies or other documents
concerning the Hazardous condition of the property or Company's Business set
forth thereon or otherwise delivered to Purchaser, the Seller has not received
any notice of writs, injunctions, decrees, orders, or judgments outstanding, or
suits, claims, actions, proceedings, or investigations instituted or threatened
under any environmental Requirements of Law applicable to any of the properties
at any time owned, leased, or operated by the Company, including but not limited
to any notice from any governmental authority or private or public entity
advising the Seller that it is on is potentially responsible for response costs
under the Comprehensive Environmental Response, Compensation and Liability Act
("CERCLA"), as amended, with respect to a release or threatened release of
Hazardous Substances.

            (h) Except as set forth on DISCLOSURE SCHEDULE 2.20 HAZARDOUS
SUBSTANCES, or as set forth in any and all reports, studies, plans, governmental
interventions, indemnity agreements, insurance policies or other documents
concerning the Hazardous condition of the property or Company's Business set
forth thereon or otherwise delivered to Purchaser, the Seller has not received
notice of any violation of any environmental, zoning, worker safety, or land use
Requirements of Law relating to the operation of the Company or to any of the
processes used or followed, results obtained, or products developed, made, or
sold by the Seller including, without limitation, under CERCLA, the Toxic
Substances Control Act of 1976, as amended, the Resource Conservation and
Recovery Act of 1976, as amended, the Clean Air Act, as amended, the Federal
Water Pollution Control Act, as amended, or the Occupational Safety and Health
Act of 1970, as amended.

      2.21 COMPLIANCE WITH LAWS. The Seller has not been charged with any
violation of, or, to the best of its knowledge, Seller is not in violation of,
and is not under any investigation with respect to any charge concerning any
violation of any Requirements of Law, in which

                                       15

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MEMBERSHIP INTEREST AGREEMENT
PAGE 16

such violation either singly or in the aggregate with other violations would
have a material adverse effect upon the operations, assets, business or
financial condition of the Company. The Company is not in default with respect
to any order, writ, injunction, or decree of any court, agency, or
instrumentality. Without limiting the generality of the foregoing, to Seller's
knowledge, the Company is in compliance with all Requirements of Law promulgated
by the Occupational Safety and Health Administration.

      2.22 LICENSES, PERMITS, AND AUTHORIZATIONS. The Seller has all approvals,
authorizations, consents, licenses, franchises, orders, and other permits
(collectively, "Licenses") of (i) any governmental or regulatory agency, whether
federal, state, local or foreign, and (ii) all trade or industry associations,
required to permit it to carry on its business as presently conducted, all of
which are in full force and effect. DISCLOSURE SCHEDULE 2.22 OPERATIONAL
LICENSES hereto sets forth all such Licenses required for the operation of the
business of the Company to the extent not previously include in DISCLOSURE
SCHEDULE 2.6.

      2.23 INVENTORY. Except as set forth on DISCLOSURE SCHEDULE 2.23, the
inventories of the Company reflected on the Balance Sheets of its "Audited
Financials" and "Financial Statements" (both terms collectively referred to as
"Company Financials"); taken as a whole are substantially in good and
merchantable condition and are suitable and usable or saleable in the ordinary
course of business for the purposes intended, net of the reserves stated on the
Company Financials. The value of the inventory set forth on the Company
Financials (net of such reserves) was established in accordance with GAAP and
with the Company's inventory valuation and write-down policies so that the net
value thereof stated on such Company Financials shall have been determined. The
Company has reasonable inventories to conduct its business consistent with past
practices. There has been no material adverse change since December 31, 2004 in
the amount or condition of the inventories or the reserves with respect thereto.

      2.24 ACCOUNTS RECEIVABLE. All accounts receivable of the Company represent
bona fide and valid claims arising in connection with sales of products by the
Company and, except to the extent of the reserves stated on the Company
Financials, to Seller's knowledge, the Company's accounts receivable are
collectible and are not subject to any counterclaim or setoff, except as set
forth on DISCLOSURE SCHEDULE 2.24. There has been no material adverse change at
the time of Closing in the amount, validity, or collectibility of the accounts
receivable of the Company from that stated on the Company's Financials.

      2.25 PROPERTY OF OTHERS. Except as set forth on SCHEDULE 2.25, no shortage
exists in (i) any inventory of raw material, work in progress, or finished goods
owned by customers or suppliers of the Company and stored upon its premises or
otherwise, or (ii) any other item of personal property owned by another for
which the Company is accountable to another. Without limiting the foregoing,
except as set forth on SCHEDULE 2.25 all items of personal property for which
the Company is accountable under any bailment agreement, consignment contract,
loan program, or otherwise are fully accounted for with no shortages or missing
or lost items, are in workable, usable, and saleable condition, and have
suffered no damage or deterioration, ordinary wear and tear excepted.

      2.26 DISCLOSURE OF CONFIDENTIAL INFORMATION. The Seller has fully
disclosed, or will disclose to the Purchaser, on or before the Closing Date,
all processes, inventions, recipes, methods,

                                       16

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MEMBERSHIP INTEREST AGREEMENT
PAGE 17

formulas, plans, drawings, customer lists, secret information, recipes, and
know-how (whether secret or not) known to it or in its possession and usable by
the Company in connection with its business as now conducted or proposed to be
conducted.

      2.27 CONDITION OF TANGIBLE ASSETS. Except as set forth on Schedule 2.27,
to Seller's knowledge, all of the facilities of the Company and its equipment
and other tangible assets, are in good condition and repair (ordinary wear and
tear excepted) and workable, usable, and adequate for the uses to which they
have been put by the Company in the ordinary course of business, and none of
such facilities and none of such equipment or other tangible assets (exclusive
of obsolete items no longer used in the Company's business) is in need of other
than routine maintenance or repair. The Company has not received any notice of
any violations of any Requirements of Law with respect to the Company's
properties or operations that have not been cured.

      2.28 PRODUCT AND SERVICE WARRANTIES. DISCLOSURE SCHEDULE 2.28, WARRANTIES,
which is attached hereto, contains a true and complete description of all
warranties and terms and conditions of sale to third parties which are not
included in the Customer maintenance and service Agreement disclosed in
DISCLOSURE SCHEDULE 2.16 with respect to all products overhauled, manufactured,
assembled, repaired or sold by the Company that have been in effect at any time
over the last five years, except for warranties imposed by law.

      2.29 ABSENCE OF UNDISCLOSED LIABILITIES. The Company does not have any
material debt, liability, or obligation of any nature, whether known or unknown,
or fixed, absolute, accrued, contingent, or otherwise, except those which (i)
are accrued or reserved against it in the Company's Financials, (ii) have been
disclosed in this Agreement or in any of the Disclosure Schedules hereto, or
(iii) have been incurred since May 24,, 2005 in the ordinary course of business
in amounts and for terms consistent, individually and in the aggregate, with the
Company's past practice.

      2.30 DISCLOSURE. No representation or warranty by the Seller in this
Agreement or any of the other Acquisition Documents (including, without
limitation, the Disclosure Schedule), contains or will contain any untrue
statement of a material fact or omits or will omit to state any material fact
necessary to make the statements herein or therein not misleading. There is no
fact known to the Seller that materially adversely affects, or that, as of the
date of Closing, might in the future materially adversely affect, the
operations, business, assets, properties, or condition, financial or otherwise,
of the Seller that has not been set forth in this Agreement or the Disclosure
Schedule.

      2.31 BROKERAGE. No broker or finder has acted directly or indirectly for
the Seller or any of their Affiliates in connection with this Agreement or the
transactions contemplated hereby, and no broker or finder is entitled to any
brokerage or finder's fee or other commission in respect thereof based in any
way on the actions or statements of, or agreements, arrangements, or
understandings made with the Seller or any of its Affiliates.

      2.32. With respect to any representation or warranty made by Seller
herein, the phrases "TO SELLER'S BEST KNOWLEDGE" or "TO SELLER'S KNOWLEDGE" (or
similar phrases which limit a representation or warranty to matters within the
knowledge or belief of Seller) shall mean that no facts or circumstances are
known by or have come to the attention of the

                                       17

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MEMBERSHIP INTEREST AGREEMENT
PAGE 18

Members of the Company, which would give any such Members knowledge of the
inaccuracy of the substantive facts and circumstances set forth in such
representation of warranty, but shall not mean that Seller, the Company or the
Members have undertaken investigations or verifications with respect to such
matters.

                                   ARTICLE III
                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser hereby represents and warrants to the Seller as set forth below:

      3.1 CORPORATE ORGANIZATION, ETC. The Purchaser is on the date hereof, and
will be on the Closing Date, a corporation duly organized, validly existing and
in good standing under the laws of the State of Oklahoma.

      3.2 AUTHORIZATION, ETC. The Purchaser has full corporate power and
authority to enter into this Agreement and the other Acquisition Documents to
which it is or will be a party, to perform its obligations hereunder and there
under, and to carry out the transactions contemplated hereby and thereby. The
Boards of Directors of the Purchaser and its Parent corporation, TAT
Technologies, Ltd. have taken, or will take before the Closing Date, all actions
required by law, its Certificate of Incorporation, its By-Laws or otherwise to
authorize (i) the execution and delivery of this Agreement and the other
Acquisition Documents and (ii) the performance of its obligations hereunder and
there under. This Agreement has been duly executed and delivered by the
Purchaser and, upon the execution and delivery of the remaining Acquisition
Documents by a duly authorized officer of the Purchaser, the remaining
Acquisition Documents will have been duly executed and delivered by the
Purchaser, and this Agreement is, and such other Acquisition Documents will be,
upon due execution and delivery thereof, the legal, valid, and binding
obligations of the Purchaser, enforceable according to their terms.

      3.3 NO VIOLATION. None of (i) the execution and delivery of this Agreement
or any other Acquisition Document by the Purchaser, (ii) the performance by the
Purchaser of its obligations hereunder or there under, or (iii) the consummation
of the transactions contemplated hereby or thereby will (A) violate any
provision of the Certificate of Incorporation or By-Laws of the Purchaser, (B)
violate, or be in conflict with, or permit the termination of, or constitute a
default under or breach of, or cause the acceleration of the maturity of, any
contract, debt, or other obligation of the Purchaser, which violation, conflict,
default, breach, termination or acceleration, either individually or in the
aggregate with all other such violations, conflicts, defaults, breaches,
terminations and accelerations, would have a material adverse effect on the
business, assets or financial condition of the Purchaser, (C) except as set
forth in DISCLOSURE SCHEDULE 3.3, if any hereof, require the consent of any
other party to, or result in the creation or imposition of any Lien upon any
property or assets of the Purchaser under any agreement or commitment to which
the Purchaser is a party or by which the Purchaser is bound, or (D) to the best
knowledge and belief of the Purchaser, violate any statute or law or any
judgment, decree, order, regulation, or rule of any court or governmental
authority to which the Purchaser is subject.

      3.4 LITIGATION. There is no action pending or, to the best knowledge and
belief of the Purchaser, threatened against the Purchaser, or any properties or
rights of the Purchaser,

                                       18

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MEMBERSHIP INTEREST AGREEMENT
PAGE 19

that questions or challenges the validity of this Agreement or any of the other
Acquisition Documents, nor any action taken or to be taken by the Purchaser
pursuant hereto or thereto or in connection with the transactions contemplated
hereby or thereby and the Purchaser does not know of any such action,
proceeding, or investigation that may be asserted.

      3.5 DISCLOSURE. No representation or warranty by the Purchaser in this
Agreement contains or will contain any untrue statement of a material fact or
omits or will omit to state any material fact necessary to make the statements
herein not misleading.

      3.6 BROKERAGE. No broker or finder has acted directly or indirectly for
the Purchaser or its Affiliates in connection with this Agreement or the
transactions contemplated hereby, and no broker or finder is entitled to any
brokerage or finder's fee or other commission in respect thereof based in any
way on the actions or statements of, or the agreements, arrangements, or
understandings made with the Purchaser or its Affiliates.

                                   ARTICLE IV
                           OBLIGATIONS OF THE PARTIES

   The Seller hereby covenants and agrees with the Purchaser and the Purchaser
hereby covenants and agrees with the Seller that:

      4.1 REASONABLE ACCESS. The Seller shall or shall cause its Members and
managers, accountants, counsel, and other authorized representatives and
affiliated parties to afford the Purchaser and its counsel, accountants, and
other authorized representatives reasonable access during normal business hours
to its plants, properties, books and records that the Purchaser and its advisors
may have the opportunity to make such reasonable investigations as they shall
desire to make of the affairs of the Seller; PROVIDED, HOWEVER, except for
managers, representatives and employees designated by the managers, the
Purchaser shall not contact employees of the Company to discuss the transactions
contemplated by this Agreement. The Company shall furnish to the Purchaser any
additional financial and operating data and other information as the Purchaser
and its counsel, accountants, and other authorized representatives shall from
time to time reasonably request.

      4.2 CONDUCT BEFORE CLOSING DATE. Before the Closing Date, except as
otherwise contemplated by this Agreement or as permitted by the prior written
consent of the Purchaser, but without making any commitment on the Purchaser's
behalf, the Company shall:

            (a) Conduct its business and operations only in the ordinary course,
including, without limitation, maintaining inventories, taken as a whole, at
levels consistent with past practice;

            (b) Maintain all of its properties and assets in good condition,
working order, and repair (except for ordinary wear and tear);

            (c) Perform its obligations under all agreements binding upon it and
maintain all of its Licenses in good standings;

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MEMBERSHIP INTEREST AGREEMENT
PAGE 20

            (d) Continue in effect the Insurance Policies (of similar coverage)
referred to in Section 2.14 hereof;

            (e) Keep available the services of its current managers and
employees;

            (f) Maintain and preserve the good will of the suppliers, customers,
and others having business relations with it;

            (g) Before the Closing Date, consult with the Purchaser from time to
time with respect to any actual or proposed material conduct of its business;

            (h) Continue all capital expenditure programs in progress before the
Closing Date; and

            (i) Obtain the approval of Purchaser prior to making any
extraordinary (not in the ordinary course of business) expenditure in excess of
$2,500.00.

      4.3 PROHIBITED TRANSACTIONS BEFORE CLOSING DATE. Before the Closing Date,
except as otherwise contemplated by this Agreement or permitted by the prior
written consent of the Purchaser, the Company shall not:

            (a) Become a party to any agreement, which, if it had existed on the
date hereof, would have come within the scope of the Disclosure Schedule
pursuant to Section 2.16 hereof;

            (b) Do any of the things listed in Section 2.10 hereof;

            (c) Enter into any compromise or settlement of any litigation,
proceeding or governmental investigation relating to its properties or Company's
Business; or

            (d) Directly or indirectly, in any way, contact, initiate, enter
into, or conduct any discussions or negotiations, or enter into any agreements,
whether written or oral, with any person or entity with respect to the sale of
any of the Company's assets or units evidencing Membership Interests or a merger
or consolidation of the Company with any other entity.

      4.4 FURTHER ASSURANCES. Before and after the Closing, each party hereto
shall execute and deliver such instruments and take such other actions as any
other party may reasonably request for the purpose of carrying out the intent of
this Agreement and the other Acquisition Documents. Each party hereto shall use
its best efforts to cause the transactions contemplated by this Agreement and
the other Acquisition Documents to be consummated, and, without limiting the
generality of the foregoing, to obtain all consents and authorizations of
government agencies and third parties and to make all filings with and give all
notices to government agencies and third parties that may be necessary or
reasonably required to effect the transactions contemplated by this Agreement
and the other Acquisition Documents. The Seller shall give prompt notice to the
Purchaser, after receipt thereof by the Seller, of (i) any notice of, or other
communication relating to, any default or event that, with notice or lapse of
time or both, would become a default under any

                                       20

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MEMBERSHIP INTEREST AGREEMENT
PAGE 21

indenture, instrument, or agreement material to the Company, to which the
Company is a party or by which the Company is bound, and (ii) any notice or
other communication from any third party alleging that the consent of such third
party is or may be required in connection with the transactions contemplated by
this Agreement and the other Acquisition Documents. Each corporate party shall
deliver to the other at Closing, appropriate evidence of the approval of its
respective Managers or Board of Directors and stockholders or Members (if
required by law) of this Agreement, the other Acquisition Documents and the
transactions contemplated hereby and thereby.

      4.5 CONFIDENTIALITY. Before and after the Closing, each party to this
Agreement shall, cause its managers, officers, accountants, counsel, and other
authorized representatives and affiliated parties, to hold in strict confidence
and not use or disclose to any other party without the prior written consent
of the other party, all information obtained from the other parties in
connection with the transactions contemplated hereby, except such information
may be used or disclosed: (i) as may be necessarily published by Purchaser to
any public market, business reporting service, or stock exchange or as may be
required by governmental stock exchange regulations or rules, or as required
under agreements with customers, vendors, lenders or other third parties, (ii)
if required by court order or decree or applicable law, (iii) if it is publicly
available other than as a result of a breach of this Agreement, (iv) if it is
otherwise contemplated herein.

                                    ARTICLE V
                      CONDITIONS TO PURCHASER'S OBLIGATIONS

      The obligation of the Purchaser under this Agreement to consummate the
Closing on the Closing Date shall be subject to the satisfaction, on or before
the Closing Date, of each of the following conditions:

      5.1 REPRESENTATIONS AND WARRANTIES TRUE. The representations and
warranties of the Seller contained herein, in the other Acquisition Documents
(including, without limitation, all schedules and exhibits hereto and thereto)
and in all certificates and documents delivered by the Seller shall be true and
accurate as of the Closing Date, except for changes permitted or contemplated by
this Agreement.

      5.2 NO MATERIAL CHANGES.

            (a) No portion of the assets material to the operation of the
business of the Company shall, after December 31, 2004 until the Closing Date,
be damaged, destroyed, or taken by condemnation, whether or not covered by any
Insurance Policy;

            (b) After December 31, 2004 and until the Closing Date, the Company
shall not have suffered or become bound by changes of any kind or nature that
either individually or in the aggregate have a material adverse effect on its
ability to continue its business operations; and,

            (c) No material adverse change in the business, assets, or financial
condition of the Company shall have occurred after December 31, 2004 and be
continuing.

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MEMBERSHIP INTEREST AGREEMENT
PAGE 22

      5.3 PERFORMANCE. The Seller shall have performed and complied in all
material respect with all agreements, obligations, and conditions required by
this Agreement or the other Acquisition Documents to be performed or complied
with by them on or before the Closing Date.

      5.4 CONSENTS. All filings with and consents from government agencies and
third parties required to consummate the transactions contemplated hereby and by
the other Acquisition Documents shall have been made or obtained (including
without limitation the consents of the lessors under the leases referred to in
Section 2.6 hereof and the consents and approvals specified in Section 2.7 and
Section 2.8), except to the extent that making any such filing or obtaining any
such consent has been waived in writing by the Purchaser or the failure to
obtain any such consent or make any such filing would not have a material
adverse effect on the assets, properties, operations, business, or condition,
financial or otherwise, of the Company.

      5.5 CLOSING DOCUMENTS. The Seller shall have delivered, or caused to be
delivered to the Purchaser, the documents and instruments described below:

            (a) The opinion of counsel for the Seller, in form and substance
reasonably satisfactory to the Purchaser and its counsel and containing such
assumptions and limitations as are customary or reasonable for opinion letters
normally provided in similar transactions, covering at least the following:

                  (i) The Company is a North Carolina Limited Liability Company
validly existing and in good standing under the laws of its state in which it
was chartered;

                  (ii) The execution, delivery, and performance of this
Agreement, the other Acquisition Documents to which the Seller is a party, and
the other instruments or documents required to be executed by the Seller in
connection herewith and therewith have been authorized by all necessary Company
and other actions of the Seller and have been duly executed and delivered by the
Seller and constitute legal, valid, and binding obligations of such parties
enforceable in accordance with their terms to the extent the Purchaser should be
able to realize the practical benefits thereof, except as such enforceability
may be limited by bankruptcy, reorganization, insolvency, moratorium, or similar
laws affecting the enforcement of creditor's rights and except as the
availability of suitable remedies may be subject to judicial discretion;

                  (iii) The consummation of the transactions contemplated by
this Agreement, the other Acquisition Documents to which the Seller is a party,
and all other instruments or documents required to be executed by the Seller in
connection herewith and therewith will not violate or result in a breach of or
constitute a default under the Articles of Organization or Operating Agreement
or other organizational agreements of the Company;

                  (iv) Except for such actions and proceedings as are disclosed
to the Purchaser in writing, Seller's counsel does not know of any limitation,
governmental investigation, actions, or suits, pending or threatened, against or
relating to the transactions contemplated by this Agreement or any other
Acquisition Document to which Seller is a party; and

                                       22

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MEMBERSHIP INTEREST AGREEMENT
PAGE 23

                  (v) On best information and belief, the transaction
contemplated herein will not violate any securities ("blue sky laws") of the
state of North Carolina.

            (b) Certified copies of the resolutions adopted by the Members and
Managers of the Company, or by appropriate committees thereof, authorizing this
Agreement and the other Acquisition Documents and the transactions contemplated
hereby and thereby.

            (c) Certificates of the Secretary of State of each of the states in
which the Company is qualified to transact business as a foreign corporation,
dated no earlier than May 1, 2005, respecting the good standing of the Company
in each such jurisdiction the Company is domesticated of qualified by
certificate to conduct business.

            (d) Operating Agreement of the Company certified as of the Closing
Date by a manager of the Company.

            (e) Any and all licenses or renewals, and consents as may be
necessary to effect the continuation of the Company's Business by the Purchaser
following the Closing of this Agreement.

            (f) Such other documents, instruments, or certificates as shall be
reasonably requested by the Purchaser or its counsel (inclusive of executed
conveyances of certificates or units of ownership and or cancelled certificates
and other assignments, waivers and necessary releases of liens, mortgages and
financial statements and security or UCC filings).

      5.6 ENVIRONMENTAL REPORT. If the Purchaser shall choose at its expense to
retain an environmental consulting firm to render an environmental audit report
respecting the Company and such firm renders a report that details violations of
federal, state, or local environmental Requirements of Law, the Seller shall
have cured or shall have caused the cure of such violations or the Purchaser
shall have waived such compliance with this Section 5.6; PROVIDED, HOWEVER, that
the Seller shall not be obligated to cure any such violation.

      5.7 CERTIFICATES OF THE SELLER. The Seller shall have furnished such
certificates of its managers and others as may reasonably be required by the
Purchaser to evidence compliance with the conditions set forth in this Article
5.

      5.8 Seller's auditors and Purchaser's auditors shall have agreed upon both
the method of compilation and accuracy of the financial statements for the
Company from January 1, 2005 through the date of Closing.

      5.9 Seller and Purchaser shall have agreed upon a baseline environmental
audit as provided in Section 9.3 (e).

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MEMBERSHIP INTEREST AGREEMENT
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                                   ARTICLE VI
                       CONDITIONS TO SELLER'S OBLIGATIONS

      The obligation of the Seller under this Agreement to consummate the
Closing on the Closing Date shall be subject to the satisfaction, on or before
the Closing Date, of each of the following conditions.

      6.1 REPRESENTATIONS AND WARRANTIES TRUE. The representations and
warranties of the Purchaser contained herein, in the other Acquisition Documents
(including, without limitation, all schedules and exhibits hereto and thereto),
and in all certificates and documents delivered by the Purchaser, shall be true
and accurate as of the Closing Date, except for changes permitted or
contemplated by this Agreement.

      6.2 PERFORMANCE. The Purchaser shall have performed and complied in all
material respects with all agreements, obligations, and conditions required by
this Agreement to be performed or complied with by it on or before the Closing
Date.

      6.3 CLOSING DOCUMENTS. The Purchaser shall have delivered or caused to be
delivered to the Seller the documents and instruments described below:

            (a) The cash payment as provided in Article I Section 4 (1.4,
above), and payment and satisfaction in full of the Blue Ridge II Limited
Partnership loan as provided in Section 1.3 (a) above, and satisfaction of the
Whitehall loan as provided in Section 1.3(b) above.

            (b) A certified copy of the resolutions adopted by the Boards of
Directors of the Purchaser and its parent corporation, TAT Technologies, Ltd.
authorizing this Agreement and the other Acquisition Documents and the
transactions contemplated hereby and thereby.

            (c) The opinion of counsel for the Purchaser, in form and substance
reasonably satisfactory to the Seller and its counsel and containing such
assumptions and limitations as are customary or reasonable for opinion letters
normally provided in similar transactions, covering at least the following:

                  (i) The Purchaser is a corporation validly existing and in
good standing under the laws of the State of Oklahoma;

                  (ii) The execution, delivery, and performance of the
Agreement, the other Acquisition Documents to which it is a party and the other
instruments or documents required to be executed by the Purchaser in connection
herewith and therewith, have been authorized by all necessary corporate and
other actions of the Purchaser and have been duly executed and delivered by the
Purchaser and constitute the legal, valid, and binding obligations of such
parties enforceable in accordance with their terms to the extent the Seller
should be able to realize the practical benefits thereof, except as such
enforceability may be limited by bankruptcy, reorganization, insolvency,
moratorium, or similar laws affecting the enforcement of creditors' rights and
except as the availability of suitable remedies may be subject to judicial
discretion;

                                       24

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MEMBERSHIP INTEREST AGREEMENT
PAGE 25

                  (iii) The consummation of the transactions contemplated by
this Agreement, the other Acquisition Documents to which the Purchaser is a
party, and all other instruments or documents required to be executed by the
Purchaser in connection herewith and therewith will not violate or result in a
breach of or constitute a default under the Articles of Incorporation, By-Laws
or other organizational agreements of the Purchaser; and

            (d) Such other documents, instruments, or certificates as shall be
reasonably requested by the Seller or its counsel.

      6.4 Seller shall have reached an agreement with Blue Ridge Investments II,
Limited Partnership and its parent and affiliated companies, and at or prior to
Closing shall have consummated the same, whereby the warrant and other rights
and interest of Blue Ridge Investments II, Limited Partnership in the Company
shall be released and terminated, and Jim Taylor shall have terminated and
released any and all options as are in his favor to acquire additional units of
ownership or future Membership Interests in the Company.

      6.5 Seller and Buyer shall have agreed upon a baseline environmental audit
as provided in Section 9.3 (e).

                                   ARTICLE VII
                             CLOSING; CLOSING DATE

      7.1 CLOSING. The closing (the "Closing") will be held in on July 6, 2005
at 9:00 a.m., at the offices of Blancato, Doughton & Hart, Winston-Salem, N.C,
or at such other time and place as the parties hereto may mutually agree upon in
writing (the "Closing Date"), at which Closing the documents and instruments
referred to in Articles V and VI hereof will be delivered by the parties.
Notwithstanding Closing Date shall occur later, the effective date of this
agreement shall be July 1, 2005.

                                  ARTICLE VIII
                         CERTAIN POST-CLOSING COVENANTS

      8.1 ACCESS. After the Closing Date, the Purchaser shall, at the Seller's
expense, permit the Seller, from time to time, to inspect and copy such books of
account and other records of the Seller and to utilize the services of the
Purchaser's or the Seller's employees, all as may be necessary or convenient to
enable the Seller to prepare and file tax returns. Until the seventh anniversary
of the Closing Date, the Purchaser shall not, without the prior written consent
of the Seller or its successors in interest, destroy or dispose of any such
records. Notwithstanding any of the foregoing, no covenant contained in this
Section 8.1 on the part of the Purchaser is intended to, and nothing herein
shall be construed to, benefit or confer any rights upon any person, firm, or
corporation other than the Seller.

      8.2 NON-COMPETITION REQUIREMENTS.

            (a) The Purchaser and the Seller agree that the Purchase Price was
fixed on the basis that the transfer of the Transferred Membership Interest to
the Purchaser would provide the Purchaser with the full benefit and good will of
the Company as it existed on the

                                       25

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MEMBERSHIP INTEREST AGREEMENT
PAGE 26

Closing Date. The Seller acknowledges that it is proper for the Purchaser to
have assurance that the value of the Transferred Membership Interest will not be
diminished by acts of the Seller after the Closing Date.

            (b) Excluding Member Jim Taylor because of his minor ownership
interest, the covenant of the other Members of the Company not to compete with
the Company following the transfer of their Transferred Membership Interests to
the Purchaser at Closing, is a material inducement for the Purchaser to purchase
the Company. Purchaser has committed additional consideration by this Agreement
to pay (the "Non-Competition Payments") the Members, excluding Jim Taylor, in
consideration of the full and faithful performance of the covenant not to
compete as is set forth in this Article, collectively the sum of $600,000
payable in 36 future monthly installments of $16,666.65 each (the final
installment being $16,666.90) disbursed to Members monthly as and for their
respective Covenants Not To Compete as set forth in this Article 8 Section 2
(8.2), the first installment commencing on like date as the date of Closing for
each successive month following the date of Closing, for a total of 36 months,
payable to Members as follows:

                                     Amount Mo.   Amount 36th
         Member Name           %     Installment  Installment   3 Year Total
         -----------------  ------   -----------  -----------   ------------
         Claude L. Buller   33 1/3%  $  5,555.55  $  5,555.75   $ 200,000.00
         Paul R. Hilliard   33 1/3%  $  5,555.55  $  5,555.75   $ 200,000.00
         Thomas W. Ferrell  33 1/3%  $  5,555.55  $  5,555.75   $ 200,000.00

         TOTAL                 100%  $ 16,666.65  $ 16,667.25   $ 600,000.00

            (c) In consideration of the foregoing, Claude L. Buller, Paul R.
Hilliard and Thomas W. Ferrell covenant and agree that, commencing on the
Closing Date and ending on like anniversary date of the month 36 months
following the Closing Date ("3 Year Anniversary of Closing Date"), they will not
(i) directly or indirectly compete with, or own, manage, operate, or control or
participate in the ownership, management, operation or control of, or provide
consulting services to, any business, firm, corporation, partnership, person,
proprietorship or other entity which is engaged in the Company's Business of
APU, propeller or landing gear maintenance, repair and overhaul or parts sales
(the "Restricted Business"), (ii) directly or indirectly solicit employment by
any person, partnership, corporation or other entity of any of the employees,
consultants, agents, or independent contractors of the Company (for this purpose
the terms "employees," "consultants," "agents," and "independent contractors"
shall include any persons having such status with regard to the Company at any
time during the six (6) months preceding any solicitation in question), or (iii)
solicit, interfere with, or endeavor to entice away from the Company, on behalf
of any person, partnership, corporation, or other entity, any customer of the
Restricted Business of the Company. The foregoing provisions shall not apply to
investments in shares of stock of a corporation traded on a national securities
exchange or on the national over-the-counter market, which shall have an
aggregate market value, at the time of acquisition, of less than $l00,000 and
constitute less than two per cent of the outstanding shares of such stock of
such corporation. For purposes of this 8.2(c), parts sales shall be defined as
the following: (i) new and repaired or overhauled parts, including cores, for
APUs, landing gear and propellers; (ii) parts and logistic support for airline
heavy maintenance checks; (iii) consumables to both the airline and military
segments; and (iv) the

                                       26

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MEMBERSHIP INTEREST AGREEMENT
PAGE 27

following rotable components to both airlines and corporate aviation segments:
(a) Honeywell air cycle machines, and (b) Frisby actuators.

      Anything to the contrary set forth in Section 8.2 notwithstanding, it is
understood and agreed that a Member may, without breaching or violating the
provisions and covenants contained in this Section 8.2, be employed by or may
participate in the ownership, management, operation or control of, or provide
consulting services to, any division, subsidiary or affiliated business not
engaged in the Restricted Business. Provided, however, Ferrell may seek written
approval from Purchaser following Closing to accept employment, consulting
assignments or other work from companies, entities or individuals which may be
considered as indirect competitors because, for example, such employers have
divisions which compete directly with Company, and Purchaser may at its
discretion provide written consent for such engagement or employment, which such
consent shall not be unreasonably withheld. Purchaser shall provide its response
to Ferrell's request in writing within 30 days of receipt of that request or
Purchaser shall be deemed to approve the request.

            (d) If any of the Members commits a breach, or threatens to commit a
breach, of any of the provisions of this Section 8.2, the Purchaser shall have
the right and remedy, in addition to any others, to have the provisions of this
Section 8.2 specifically enforced by any court having equity jurisdiction,
together with an accounting therefore, it being acknowledged and understood by
the Seller that any such breach or threatened breach will cause irreparable
injury to the Purchaser and that money damages will not provide an adequate
remedy therefore. In addition to any remedy Purchaser may have against the
Members breaching this covenant not to compete, the Purchaser shall have the
right to suspend payments PENDENT LITE, and set off or off set future payments
to breaching Member or Members against any judgment, order or decree of a court
of competent jurisdiction awarding damages to Purchaser. Anything to the
contrary set forth in the Section 8.2 notwithstanding, it is understood and
agreed that upon a breach or threatened breach of the covenants set forth this
Section 8.2, Purchaser's remedies shall be only against Member or Members
committing or threatening to commit such breach, and Purchaser shall have no
claim against and no right to suspend payments to the other non-breaching Member
or Members.

            (e) Members agree the territorial limitation under which the
covenant not to compete will apply shall be worldwide and that Members do not
consider such broad territorial limits to be unreasonable, but in the event any
court of competent jurisdiction shall determine the territorial limits of this
covenant to be unreasonable, then in that event, the geographical territorial
limits shall be fixed by the court to the maximum geographical territory allowed
by the law.

      8.3 CONSULTING SERVICES REQUIREMENTS. During the first three (3) months
following the Closing Date and at Purchaser's request, Thomas W. Ferrell, Claude
L. Buller and Paul R. Hilliard each agree to provide up to a maximum of 10 hours
per month in consulting services at no additional cost to Purchaser. The date,
time and location for the provision of such consulting services shall be
mutually agreed upon by Purchaser and the Member to perform such consulting
services.

                                       27

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MEMBERSHIP INTEREST AGREEMENT
PAGE 28

      Should Purchaser request consulting services in excess of the 10 hour
monthly maximum, neither Ferrell, nor Buller nor Hilliard shall have any
obligation to provide such excess services. However, if Ferrell, Buller or
Hilliard agree to provide any consulting services in excess of the 10 hour
monthly maximum during the three (3) month period of time following Closing,
then in that event, they will be paid, for actual hours worked at the same rate
of pay received by them from the Company prior to Closing, and payable to them
at times they were paid prior to Closing. After conclusion of the third month
following the Closing Date, Purchaser and Members may continue the consulting
services under terms as may be thereafter agreed by them in writing; however,
neither Purchaser nor the Members shall have any obligation to continue such
consulting services.

                                   ARTICLE IX
                                 INDEMNIFICATION

      9.1 SURVIVAL. Notwithstanding (i) the making of this Agreement, (ii) any
examination made by or on behalf of the parties hereto, and (iii) the Closing
hereunder, (A) the representations and warranties of the parties contained
herein or in any certificate or other document delivered pursuant hereto or in
connection herewith shall survive until the 3 Year Anniversary of Closing Date,
except for the representations and warranties made in Section 2.13 hereof (Tax
Returns and Payments), which shall survive until expiration of the applicable
statute of limitations for the underlying cause of action; and (B) the covenants
and agreements required to be performed after the Closing pursuant to any
provision of this Agreement, including this Article 9, shall survive until fully
performed or fulfilled. No action for indemnification pursuant to Sections 9.3
or 9.4 may be brought after the applicable expiration date, provided, however,
that if before such date one party hereto has notified in writing the other
party hereto of a claim for indemnity hereunder (whether or not formal legal
action shall have been commenced based upon such claim), such claim shall
continue to be subject to indemnification in accordance herewith.

      9.2 LIMITATIONS ON MEMBER'S INDEMNITY:

      (a) Purchaser shall not be entitled to any indemnification, whether in the
form of payment or offset against the Non-Competition Payments, for any Damages,
unless and until the aggregate amount of all Damages suffered or incurred by
Purchaser exceeds $100,000.00, in which event such Damages of Purchaser may be
claimed only to the extent that such Damages exceed $100,000.00. Provided
however, this $100,000.00 minimum shall not apply to Damages based on income
taxes of the Company pursuant to Section 9.3(d) or Damages based upon
Requirements of Law related to Hazardous Substances or any release, spill or
discharge by the Company of any Hazardous Substances onto any property owned,
leased or operated by the Company pursuant to Requirements of Law related to
Hazardous Substances or any release, spill or discharge by the Company of any
Hazardous Substances onto any property owned, leased or operated by the Company
pursuant to Section 9.3(e), below.

      (b) Except only as provided in 9.2(c) below, none of the Members shall
have any liability to Purchaser or its successors or assigns (for
indemnification, Damages or otherwise) in excess of the unpaid amounts of the
Non-Competition Payments pursuant to Section 8.2, and Purchaser's sole recourse
for Damages under Section 9.3 or otherwise under this

                                       28

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MEMBERSHIP INTEREST AGREEMENT
PAGE 29

Agreement, shall be as an offset against the Non-Competition Payments coming due
under Section 8.2 above.

      (c) Provided, however, the Damages imitation set forth in 9.2(b) above
shall not apply to Damages incurred by Purchaser for undisclosed liabilities on
account of Seller's actual fraud, intentional deceit or intentional
misrepresentation (for example, undisclosed liabilities of which the Members had
actual knowledge and intentionally failed to disclose the same or actively and
intentionally concealed the same).

      (d) The amount of any Damages of Purchaser under Section 9.3 shall be
reduced by the amount, if any, received by Purchaser from any third person,
including, without limitation, any insurance company or other insurance provider
(such amount being referred to herein as a "Third Party Reimbursement"), in
respect of the Damages suffered thereby. If, after receipt by Purchaser of any
indemnification payment or off-set against the Non-Competition Payments,
Purchaser receives a Third Party Reimbursement in respect of the same Damages
for which indemnification was made and such Third Party Reimbursement was not
taken into account in assessing the amount of indemnification, then Purchaser
shall turn over all of such Third Party Reimbursement to the Members (other than
Jim Taylor) up to the amount of the indemnification paid pursuant hereto.

      (e) Anything to the contrary contained in this Agreement notwithstanding,
the Members shall have no obligation to or liability to indemnify Purchaser for
any Damages for undisclosed liabilities or for breach of any representation or
warranty where the basis of such liabilities or breach were discovered by or
known to Purchaser prior to Closing (the burden of proof being on the Members
that the basis of such liabilities were known to or discovered by Purchaser
prior to Closing). Further, anything to the contrary contained in this Agreement
notwithstanding, the Members shall have no obligation to or liability to
indemnify Purchaser for any Damages for undisclosed liabilities or for breach of
any representation or warranty where the basis of such liabilities or breach
were disclosed to Purchaser in writing (including paper, photocopies,
facsimiles, e-mails, electronic, magnetic or digital data contained on a
computer readable disk, prior to Closing.

      (f) Anything to the contrary contained in this Agreement notwithstanding,
and except for Seller's post closing covenants set forth in Section 8.2 above,
Purchaser's sole remedy for any breach or default under this Agreement
(including any breach of representation or warranty), shall be a claim for
indemnification pursuant to Section 9.3 below, as limited by the limitations set
forth in Section 9.2.

      (g) At least one printed hard copy of all items contained in Disclosure
Schedules shall be maintained by the Company following Closing and for a period
of five years following Closing. All other copies of this Agreement provided to
Seller and Purchaser shall provide copies of all Disclosure Schedules on
magnetic or ditigal data contained on computer readable disk.

      9.3 INDEMNIFICATION BY THE SELLER. Subject to the conditions of Article
IX, Section 9 (9.2, above), the Members, except for Jim Taylor, shall indemnify
and hold the Purchaser and its successors and assigns harmless in respect of any
and all claims, losses, damages, liabilities, and expenses (including, without
limitation, settlement costs and legal, accounting, and other

                                       29

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
PAGE 30

expenses in connection therewith) (collectively, the "Damages") incurred by the
Purchaser and its successors and assigns in connection with each and all of the
following.

            (a) Any claim by any person or other entity for any broker's or
finder's fee or similar fee charged for commission that arises from any action,
statement, or commitment made by the Seller or its agents or Affiliates.

            (b) Any breach or other failure to perform any covenant, agreement,
or obligation of the Seller contained in this Agreement, any other Acquisition
Document or any other instrument, including all certificates, contemplated
hereby or thereby.

            (c) Any breach of any representation or warranty by the Seller
contained in this Agreement, any other Acquisition Document or any other
instrument, including all certificates, contemplated hereby or thereby.

            (d) The Company's failure to pay any income taxes it is required to
pay prior to Closing.

            (e) To the extent not otherwise indemnified under that certain
Indemnity Agreement in favor of Company and Members by Piedmont Aviation
Services, Inc. and Piedmont Hawthorne Aviation, Inc. dated November 18, 2002,
which is attached hereto marked Exhibit "A" and made a part hereof ('Hawthorne
Indemnity"), Members (excluding Jim Taylor), shall additionally indemnity
Purchaser and Company in the same manner and upon the same terms of the
Hawthorne Indemnity, (which for purposes of this indemnity, the Members
excluding Jim Taylor being identified as "Indemnitor" and the Company and
Purchaser as well as their members, managers, officers, directors, shareholders,
employees, representative and attorneys being identified as Indemnitees as
those terms are defined in the Hawthorne Indemnity.) for Any Damages arising
between the dates of November 18, 2002 and the Closing Date which are caused by
the Company's failure to comply with any Requirements of Law related to
Hazardous Substances or any release, spill or discharge by the Company of any
Hazardous Substances onto any property owned, leased or operated by the Company
(including, without limitation, costs of response, removal, remediation,
investigation, corrective action, property damage, personal injury, economic
loss, damage to natural resources, health assessments and health studies,
settlement, interest accruing on recoverable amounts, penalties, and attorneys'
fees) accruing to the Purchaser or the Company, including (i) remedial work,
monitoring, removal or other costs and expenses associated with environmental
matters with respect to any Hazardous Substances required by any environmental
Requirements of Law, (ii) injury, disease, or death of any person (including any
employee, former employee, agent, or representative of any subcontractor of the
Company) arising out of any environmental matters, or (iii) any damage to any
property, (hereinafter all of the above damages referenced as "Remediation
Damages') The standard in determination of contamination levels applicable
during the Members operation of the Company upon which claims for contamination
may be made by the Indemnitees shall be the difference in contaminate levels
disclosed: (i) by the Environmental Site Aassessment results determining maximum
soil contaminant concentrations listed on Exhibits A and B of the Hawthorne.
Indemnity and results determining maximum soil contaminant concentrations listed
in the Environmental Site Assessments determining maximum soil contaminant
concentrations prepared for the Purchaser prior to Closing which is attached

                                       30

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MEMBERSHIP INTEREST AGREEMENT
PAGE 31

hereto as Exhibit "B" and made a part hereof.. Members liability for claims made
under this Section shall not exceed the Remediation Damages as are ordered by
any governmental; authority having competent jurisdiction, over environmental
matters.

      9.4 INDEMNIFICATION BY THE PURCHASER. The Purchaser and its successors and
assigns shall indemnify, defend and hold harmless the Seller, each of the
Members, and their respective successors and assigns in respect of any and all
Damages incurred by Seller, each of the Members, and their respective successors
and assigns in connection with each and all of the following.

            (a) The claim by any person for any broker's or finder's fee or
similar fee charged for commission that arises from any actions, statements, or
commitments made by the Purchaser or its agents or Affiliates.

            (b) The breach or other failure to perform any covenant, agreement,
or obligation of the Purchaser contained in this Agreement or any other
Acquisition Document or any other instrument, including all certificates
contemplated hereby or thereby, including failure to pay or hold any Member
harmless from assumed liabilities and obligations as are identified in Article I
section 3 (e.g., 1.3), above.

            (c) Any breach of any representation or warranty by the Purchaser
contained in this Agreement or any other Acquisition Document or any other
instrument, including all certificates, contemplated hereby or thereby,
including failure to pay or hold any Member harmless from assumed liabilities
and obligations as are identified in Article I section 3 (e.g., 1.3), above.

      9.5 NOTICE AND DEFENSE OF CLAIM. Whenever any claim shall arise for
indemnification hereunder, the party entitled to indemnification (the
"Indemnified Party") shall provide written notice to the other party (the
"Indemnifying Party") within 60 (sixty) days of becoming aware of the right to
indemnification and, as expeditiously as possible thereafter, the facts
constituting the basis for such claim. In connection with any claim giving rise
to indemnity hereunder, resulting from or arising out of any claim or legal
proceeding by a person who is not a party to this Agreement, the Indemnifying
Party, at its sole cost and expense and upon written notice to the Indemnified
Party, may assume the defense of any such claim or legal proceeding with counsel
reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be
entitled to participate in the defense of any such action, with its counsel and
at its own expense. If the Indemnifying Party does not assume the defense of any
such claim or litigation resulting there from, the Indemnified Party may, but
shall not be obligated to, defend against such claim or litigation in such
manner as it may deem appropriate including, but not limited to, settling such
claim or litigation, after giving notice of it to the Indemnifying Party, on
such terms as the Indemnified Party may deem appropriate and no action taken by
the Indemnified Party in accordance with such defense and settlement shall
relieve the Indemnifying Party of its indemnification obligations herein
provided with respect to any Damages resulting there from.

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MEMBERSHIP INTEREST AGREEMENT
PAGE 32

                                    ARTICLE X
                                   TERMINATION

10.1 TERMINATION. This Agreement may be terminated at any time before the
Closing Date:

            (a) By mutual consent of the Purchaser and the Seller;

            (b) By either the Purchaser or the Seller if the Closing has not
occurred on or before the Closing Date as may be extended for reasonable cause,
PROVIDED that this provision shall not be available to the party who fails or
refuses to consummate the transactions contemplated herein or to take any other
action referred to herein as necessary to consummate the transactions
contemplated hereby in breach of such party's obligations contained herein; and

            (c) By either the Purchaser or the Seller if there has been a
material breach on the part of the other party in any material representation,
warranty or covenant set forth in this Agreement that is not cured within ten
(10) business days after such other party has been notified of the intent to
terminate this Agreement pursuant to this clause .10.1 (c).

            (d) By Purchaser in the event of its inability to meet any of the
four (4) contingencies set forth in paragraph 3 of the Letter of Intent from
Purchases to Seller dated March 29, 2005 (the "Contingencies"), these
Contingencies, and only the Contingencies, being specifically incorporated
herein by reference and made a part hereof as though fully set out in this
Agreement

      10.2 EFFECT OF TERMINATION. In the event of termination of this Agreement
as expressly permitted under Section 10.1 hereof, this Agreement shall forthwith
become void and of no force and effect, and there shall be no liability on the
part of either the Seller, the Purchaser, or their respective managers,
officers, directors, representatives or agents, PROVIDED however, if such
termination occurs pursuant to Section 10.1(c) and resulted from the material
misrepresentation or material breach by a party of the covenants of such party
contained in this Agreement, (and the breach remains uncured for more than the
10 day period of time) such breaching party shall be fully liable as a result of
the material misrepresentation or breach. In the event of termination hereunder
before the Closing, each party shall return promptly to the other Party all
documents, work papers, and other material of the other party furnished or made
available to such party or its representatives or agents and all copies thereof.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

      11.1 AMENDMENT AND MODIFICATION; WAIVER OF COMPLIANCE. Subject to the
applicable law, this Agreement may be amended, modified, and supplemented only
by written agreement signed by the Purchaser and the Seller. Any failure by any
party to this Agreement to comply with any obligation, covenant, agreement, or
condition contained herein may be expressly waived in writing by the other
parties hereto, but such waiver or failure to insist upon strict compliance
shall not operate as a waiver of, or estoppel with respect to, any subsequent or
other failure. Whenever this Agreement requires or permits consent by or on
behalf of any

                                       32

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MEMBERSHIP INTEREST AGREEMENT
PAGE 33

party hereto, such consent shall be given in a manner consistent with the
requirements for a waiver of compliance as set forth in this Section.

      11.2 FEES AND EXPENSES. Except as otherwise provided herein, each of the
parties hereto will pay its own fees and expenses (including attorneys' and
accountants' fees, legal costs, and expenses) incurred in connection with this
Agreement, the other Acquisition Documents and the consummation of the
transactions contemplated hereby and thereby.

      11.3 NOTICES. All notices, requests, demands, and other communications
required or permitted hereunder shall be in writing and shall be deemed to have
been given if delivered by hand, overnight courier, or mailed certified or
registered mail with postage prepaid as follows.

            (a) If to the Purchaser, to:

                  Limco-Airepair, Inc.
                  5304 South Lawton Ave
                  Tulsa, OK 74107
                  Attention: Shaul Menachem, President

                  With a copy to: Jack N. Herrold
                                  Herrold Herrold & Co., Lawyers, P.C.
                                  300 ONEOK Plaza
                                  100 West Fifth Street
                                  Tulsa OK 74103

(b) If to the Seller, to:

                  Claude L. Buller
                  115 Manchester Place
                  Greensboro, NC 27410

                  Paul R. Hilliard
                  2803 Kinsey Ct.
                  Summerfield, NC 27358

                  Thomas W. Ferrell
                  315 Beechcliff Ct.
                  Winston-Salem, NC 27104

                  Jim Taylor
                  601 Chesham Dr.
                  Kernersville, NC 27284

                  With Copy to: Andrew D. Hart
                                Blancato Doughton & Hart PLLC
                                633 W Fourth Street, STE 150
                                Winston-Salem, N.C. 27101

                                       33

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
PAGE 34

      11.4 ASSIGNMENT. This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

      11.5 GOVERNING LAW. This Agreement and the legal relations between the
parties hereto shall be governed by, and construed in accordance with, the laws
of the State of Delaware, without reference to the conflict of laws principles
thereof; provided however, Section 8.2 concerning Non-Competition shall be
governed by, and construed in accordance with either the laws of the State of
North Carolina or the laws of the State of Oklahoma, whichever best allows for
enforcement of the covenant not to compete in accordance with the terms of
section 8.2.

      11.6 COUNTERPARTS. This Agreement may be executed simultaneously in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Faxed signatures shall
have the same effect as an original signature.

      11.7 HEADINGS. The headings contained in this Agreement are inserted for
convenience only and shall not constitute a part hereof.

      11.8 ATTORNEY FEES IN LITIGATION. The prevailing party in any litigated
claim between the parties hereto (including those brought in Arbitration under
Section 11.11, below) shall be entitled to recover all costs and attorney fees
they have expended as may deemed reasonable by the court of competent
jurisdiction in which the controversy or action is pending.

      11.9 ENTIRE AGREEMENT. This Agreement, including the Disclosure Schedules,
the exhibits hereto and other documents referred to herein which form a part
hereof, embody the entire agreement and understanding of the parties hereto in
respect of the subject matter contained herein and supersede all prior
agreements and understandings between the parties with respect to such subject
matter, including, by way of illustration and not by limitation, the Letter of
Intent dated March 29, 2005 (except the terms therein contained concerning
Purchaser contingencies, which have been incorporated herein by reference).
There are no restrictions, promises, warranties, covenants, or undertakings
other than those expressly set forth or referred to herein.

      11.10 DEFINITIONAL PROVISIONS. All terms defined in this Agreement shall
have such defined meanings when used in any exhibit, schedule, or any
certificate or other document made or delivered pursuant hereto or thereto,
unless otherwise defined therein.

      11.11 ARBITRATION. Any and all controversies and claims arising out of or
relating to this Agreement or any of the Acquisition Documents, or breach
thereof, shall be settled by binding private arbitration. The place of
arbitration shall be Greensboro, North Carolina. There shall be three
arbitrators, who shall be licensed attorneys, chosen as follows: (a) one
arbitrator stall be chosen by Purchaser, and (b) one arbitrator shall be chosen
by the Members, and (c) the two arbitrators thus named will then be directed to
name a third arbitrator. The decisions and determinations by any two of the
three arbitrators shall be binding on all parties to the arbitration The
arbitration shall be administered in accordance

                                       34

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
PAGE 35

with the American Arbitration Association's Commercial Arbitration Rules, except
that (i) there shall be no discovery depositions, unless any witness will not
personally appear and testify at the arbitration; and (ii) each party agrees to
provide any relevant documents requested by the other party, except to the
extent such documents are not discoverable under applicable law. Any dispute
concerning discovery depositions or the provision of documents shall be decided
by the arbitrators. Any award shall be a conclusive determination of the matter,
shall be binding upon the parties thereto and shall not be contested by any of
them. Judgment on the award rendered by the arbitrator may be entered in any
court having jurisdiction thereof. The parties shall share equally the cost of
the arbitrator's fees and expenses and any administrative expenses as they
arise. As part of such award, the prevailing party (as determined by the
arbitrator) shall be awarded the arbitrator's fees and expenses and any
administrative expenses previously paid by such party.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the day and year First above stated.

                                 "Purchaser"

                            LIMCO-AIREPAIR, INC.

                            /s/ Shaul Menachem
                            --------------------------------------------
                            by Shaul Menachem, President

                                 "Seller"

                            PIEDMONT AVIATION COMPONENT
                            SERVICE, L.L.C.

                            /s/ Claude L. Buller
                            -------------------------------------------
                            by Claude L. Buller, Authorized Manager
                                    "Member and Managers"

                            /s/ Claude L. Buller
                            -------------------------------------------
                            Claude L. Buller, Member and Manger

                            /s/ Paul R. Hilliard
                            -------------------------------------------
                            Paul R. Hilliard, Member and Manager

                            /s/ Thomas W. Ferrell
                            -------------------------------------------
                            Thomas W. Ferrell, Member and Manager

                            /s/ Jim Taylor
                            -------------------------------------------
                            Jim Taylor, Member and Manager

                                       35

<PAGE>

              EXHIBIT "A" TO MEMBERSHIP INTEREST PURCHASE AGREEMENT

                               INDEMNITY AGREEMENT

      THIS INDEMNITY AGREEMENT ("Indemnity Agreement") executed this 18th day of
November, 2002, by PIEDMONT AVIATION SERVICES, INC., a North Carolina
Corporation (hereinafter referred to as "Piedmont") and PIEDMONT/HAWTHORNE
HOLDINGS, INC., a Delaware Corporation (hereinafter, jointly and severally with
Piedmont, referred to as "Indemnitor") in favor of PIEDMONT AVIATION COMPONENT
SERVICES, LLC, a North Carolina Limited Liability Company (hereinafter referred
to as "Lessee").

                              W I T N E S S E T H:

      WHEREAS, Piedmont, as Seller, and Lessee, as Buyer, are parties to a
Purchase and Sale Agreement dated as of July 26, 2002, as amended by a First
Amendment to Purchase and Sale Agreement dated November 18, 2002 (the "Purchase
and Sale Agreement"), and a Royalty Agreement, dated as of the date hereof (the
"Royalty Agreement"); and

      WHEREAS, (i) Piedmont is to assign to Lessee its leasehold interest in the
Landing Gear and Support Shop located at 3817 North Liberty Street,
Winston-Salem, North Carolina, in accordance with the terms of a Lease Agreement
by and between The Forsyth County Airport Authority and Piedmont Aviation, Inc.
(such property, the "Landing Gear Shop"); (ii) Piedmont is to assign to Lessee
its leasehold interest in the APU Shop located at 1031 E. Mountain Street,
Building 320, Kernersville, NC 27284, in accordance with the terms of a Lease
Agreement by and between Twin City Properties, Corp. and Piedmont Aviation, Inc.
(such property, the "APU Shop"); and (iii) Piedmont is to lease to Lessee a
portion of the Propeller Shop located at 3820 North Liberty Street,
Winston-Salem, North Carolina pursuant to a written Lease Agreement to be
entered into upon the closing of the Purchase and Sale Agreement (such property,
the "Prop Shop", and collectively with the Landing Gear Shop and the APU Shop,
the "Premises"); and

      WHEREAS, Lessee has requested that Piedmont and its parent,
Piedmont/Hawthorne Holdings, Inc., give, and Indemnitor has agreed to execute
this Indemnity Agreement with respect to certain existing Environmental
Conditions (as defined in SECTION 5 below) at the Premises.

      NOW, THEREFORE, in consideration of the closing under the Purchase and
Sale Agreement, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agrees as
follows:

      1. Within ninety (90) days of the date of this Agreement, Indemnitor, at
its expense, shall cause to be initiated and thereafter completed in a prompt
manner a Comprehensive Site Assessment, as that term is defined by the North
Carolina Department of Environment and Natural Resources' Guidelines for
Assessment and corrective Action then in effect (the Comprehensive Site
Assessment, together with any additional investigations, tests, assessments,
studies or other inquiries conducted as a result of such Comprehensive Site
Assessment, the "CSA"), of the Landing Gear Shop by an entity to be selected by
Indemnitor

<PAGE>

and reasonably acceptable to Lessee. Indemnitor shall instruct the entity or
entities performing the CSA to provide to Indemnitees, at the time first
provided to any Indemnitor, a copy of each report, result and summary and each
other document provided by such entity or entities to Indemnitor with respect to
such CSA. Within ten (10) business days after completion of the CSA, Indemnitor
shall promptly report the results of all sampling and other tests from the CSA
to the applicable governmental body, administrative agency, or regulatory
authority, including, without limitation the North Carolina Department of
Environmental and Natural Resources. Following completion of the CSA, Indemnitor
shall promptly undertake, at its or their expense, the remediation of all
Environmental Conditions (as defined in SECTION 5 below) existing on the Landing
Gear Shop, and shall thereafter diligently prosecute to completion all
abatement, remediation, and other clean-up or remedial activities with respect
to such Environmental Conditions. Such remediation and clean-up activities shall
be completed by such entity or entities as are reasonably acceptable to Lessee
in accordance with all applicable laws, rules, regulations and requirements of
the Governmental Agency.

      Until receipt of the Agency Letter (as defined in Section 6 below),
Indemnitor's obligations and liabilities under this Indemnity Agreement shall
include the remediation of all Environmental Conditions existing on, at, under,
in or off the Landing Gear Shop, including, without limitation, those required
to be remediated due to: (i) changes in the standards set forth in the
applicable environmental laws, rules and regulations, and (ii) newly regulated
constituents and contaminants.

      2. Indemnitor, and each of them, hereby agrees, jointly and severally, to
indemnify, and defend by competent counsel reasonably acceptable to Lessee, and
hold harmless, Lessee, and its respective members, managers, directors,
officers, employees, shareholders, representatives, and agents, and the
respective successors-in-interest, successors-in-title and assigns thereof
(hereinafter referred to, collectively and separately, as the "Indemnitees")
from and against any legal or administrative proceedings and all demands,
claims, liabilities, judgments, orders, damages, fines, penalties, or costs
(including, without limitation, reasonable legal, accounting, consulting,
engineering and other expenses) occasioned by, caused by, related to or arising
out of: (a) actions, acts, orders and directives by or from any governmental or
regulatory body, or any third party (including, without limitation, the Forsyth
County Airport Authority, Twin City Properties, Inc. or their successors in
title or interest), in connection with any Environmental Condition; (b) the
remediation of any Environmental Condition arising out of, resulting from, or
attributable to, the assets, business, or operations of Piedmont and its
predecessors in interest at the Premises; or (c) the existence of any
Environmental Condition on, at, under, in or off the Premises.

      3. The indemnities described above specifically include, but are not
limited to, the direct obligation of Indemnitor to promptly perform any remedial
or other activities required or ordered by any administrative agency, government
official, or third party (including, without limitation, the Forsyth County
Airport Authority, Twin City Properties, Inc. or their successors in title or
interest), or otherwise necessary to avoid injury or liability to any person or
property, to prevent the spread of pollution, or to permit continued safe

                                       -2-

<PAGE>

operation of the Premises by Lessee (hereinafter the "remedial work"). Without
waiving its indemnity, upon failure of Indemnitor to promptly perform the
remedial work, any Indemnitee may, at its option, commence such work itself and
require Indemnitor to pay all costs thereby incurred.

      4. Without limiting its obligations under any other paragraph of this
Indemnity Agreement, Indemnitor shall be solely and completely responsible for
responding to and complying with any administrative notice, order, request or
demand, or any third party claim or demand (including, without limitation, any
claim or demand made by the Forsyth County Airport Authority, Twin City
Properties, Inc. or their successors in title or interest), relating to any
Environmental Condition on the Premises. The responsibility conferred under this
paragraph includes, but is not limited to, responding to such orders on behalf
of Indemnitees and defending against any assertion of any Indemnitee's
responsibility or duty to perform under such orders. Indemnitor shall assume any
liabilities or responsibilities which are assessed against any Indemnitee in any
action described under this paragraph.

      5. "Environmental Conditions", for purposes of this Indemnity Agreement,
shall mean any and all of the following: (a) with respect to the Premises, the
excess, if any, of the concentration of constituents shown on Table 1 and 2
attached to this Indemnity Agreement as Exhibit A, over the "Industrial
Commercial MSCC Limits" of Table 1, and the "NCAC 2L Standards" of Table 2, as
shown in those columns on, and in effect on the date of, Table 1 and Table 2,
respectively, attached to this Indemnity Agreement as Exhibit A; (b) with
respect to the Landing Gear Shop, any condition with respect to the Environment
in, at, on, under or off the Landing Gear Shop set forth in, disclosed by or
ascertainable from those environmental reports and assessments with respect to
the Premises listed on Exhibit B, attached hereto, or which condition becomes
known as a result of the CSA; (c) with respect to the APU Shop, any condition
with respect to the Environment in, at, on, under or off the APU Shop arising
from or related to any activity of Indemnitor; and (d) with respect to the Prop
Shop, any condition with respect to the Environment in, at, on, under or off the
Prop Shop including, but not limited to those matters set forth in, disclosed by
or ascertainable from those environmental reports and assessments with respect
to the Premises listed on Exhibit B attached hereto.

      For the purposes of this Indemnity Agreement, "Environment" shall mean
soil, surface waters, groundwaters, land, stream sediments, surface or
subsurface strata, ambient air, and any environmental medium. Indemnitor, and
each of them, hereby jointly and severally represent and warrant to Lessee and
the other Indemnitees that the reports and assessments set forth on Exhibit B
are all environmental reports and assessments with respect to the Premises of
which Indemnitor has knowledge or is aware.

      6. Indemnitor, and each of them, hereby jointly and severally represent
and warrant to Lessee and the other Indemnitees that any and all Environmental
Conditions, which are required by law to be reported to any governmental body,
administrative agency, or regulatory authority (including, without limitation
the North Carolina Department of Environmental and Natural Resources) has been
appropriately reported thereto, and

                                       -3-

<PAGE>

Indemnitor shall be responsible for and agrees that it shall undertake all
required assessment, monitoring, abatement, remediation, and other clean-up or
remedial activities, with respect to the Environmental Conditions to the
satisfaction of the appropriate governmental or regulatory body. This Indemnity
Agreement shall terminate with respect to the Environmental Conditions of any
one of the locations constituting the Premises only upon Lessee's receipt of a
letter from the governmental body, administrative agency or regulatory authority
that has jurisdiction and authority to require the remediation of the
Environmental Conditions at that location stating, without qualification, that
(a) all remedial, monitoring or actions at that location have been completed to
the satisfaction of such body, agency or authority and that no further action
will be required with respect to such Environmental Conditions at that location;
or (b) no action will now or hereafter be required by such body, agency or
authority with respect to the Environmental Conditions at that location (such a
letter, an "Agency Letter").

      7. If, at any time during the term of this Indemnity Agreement,
Piedmont/Hawthorne Holdings, Inc. sells substantially all of its assets to any
entity, or merges with such entity and such entity is the survivor, in a
transaction in which such entity (i) does not have a net worth reasonably
acceptable to Indemnitees, and/or (ii) does not assume in writing the
obligations of Indemnitor under this Indemnity Agreement, then, in such event,
Indemnitor shall escrow with an independent third-party reasonably acceptable to
Indemnitees, solely against any liability of Indemnitor to Indemnitees under
this Indemnity Agreement, an amount of cash sufficient to pay, cover and provide
for all obligations and liabilities of Indemnitor under this Indemnity
Agreement. Such escrow amount shall be determined by agreement of the parties
hereto, however, if the parties are unable to so agree within thirty (30) days
prior to the completion of such asset sale or merger, the escrow amount shall be
determined by a licensed environmental contractor or consultant selected by
Lessee and approved by Indemnitor, such approval not to be unreasonably
witheld, which determination shall be binding on all parties hereto. In the
event that the entity so described meets the qualifications set forth in this
paragraph, Indemnitor and each of them shall be released from any and all
obligations under this Indemnity Agreement.

      8. The Indemnitees' recourse under this Indemnity Agreement shall be
direct against each Indemnitor, and in addition to such direct liability of each
Indemnitor, at the Indemnitees' option, the Indemnitees may offset any losses,
costs, expenses, damages, and other matters from which the Indemnitees are
indemnified hereunder against payments due to Piedmont under the Royalty
Agreement.

      9. CLAIMS FOR INDEMNIFICATION

            (a) Any claim for indemnification pursuant to this Indemnity
Agreement which is based upon a final judgment, decree or award of a court of
competent jurisdiction or upon the order of any governmental body,
administrative agency or regulatory authority and such claim requires the
payment of money by any Indemnitee, such judgment, decree, award or order shall
be conclusive as to the amount of such claim, provided a certified copy of such
judgment, decree, award or order accompanies the notice relating to such claim
and provided

                                       -4-

<PAGE>

further that such Indemnitee shall have complied with the requirements of
SECTION 9(b) below. Any claim for indemnification shall be conclusive in all
respects thirty (30) days after receipt by Indemnitor of notice thereof, unless
within such period Indemnitor shall have sent to such Indemnitee, and such
Indemnitee shall have received, notice questioning the propriety of the claim,
in which case such claim, unless settled by agreement of the parties, shall be
promptly referred to arbitration as provided in SECTION 10(a) below. In the
event that an Indemnitee makes a claim for indemnification, and Indemnitor
contests such claim but the claim is not settled or referred to arbitration
within sixty (60) days after receipt by Indemnitor of notice of the claim from
such Indemnitee, such claim shall be regarded as conclusive in all respects.

            (b) In the event that any legal proceeding shall be instituted, or
any claim or demand shall be asserted against any Indemnitee by any third party
in respect of which indemnity may be sought pursuant to the provisions of this
Indemnity Agreement, such Indemnitee, with reasonable promptness after obtaining
knowledge of such proceeding, claim, or demand shall give written notice thereof
to the Indemnitor, who shall then have the right, at its option and expense, to
be represented by counsel of its choice in connection with such matter, which
counsel shall be reasonably satisfactory to the Indemnitee, and to defend
against, negotiate, settle or otherwise deal with any such proceeding, claim or
demand; PROVIDED, HOWEVER, that without the prior written consent of the
Indemnitee, which consent shall not be unreasonably withheld, the Indemnitor
shall not consent to the entry of any judgment in or agree to any settlement of
any such matters; FURTHER PROVIDED, that the Indemnitee may retain counsel, at
its own expense, to represent it and participate in connection with any such
proceeding or claim or demand. Failure by the Indemnitor to notify the
Indemnitee of the Indemnitor's election to defend any proceeding, claim or
demand with respect to which indemnity is sought, within thirty (30) days after
notice thereof shall have been given by the Indemnitee, shall be deemed a waiver
by the Indemnitor of its right to defend against such matter. If the Indemnitor
assumes defense of any such proceeding, claim or demand, it shall take or cause
to be taken all steps necessary in connection with such defense, and the
Indemnitee shall in all events be entitled to indemnity with respect to such
matter, as provided in this Indemnity Agreement. In the event that the
Indemnitor does not elect to defend any proceeding, claim or demand with respect
to which indemnity is sought, the Indemnitee may defend against, settle or
otherwise deal with any such proceeding, claim or demand in such matter as it
may in its good faith discretion deem appropriate and the Indemnitor shall be
liable for indemnification with respect to such matter, including without
limitation the reasonable costs of such defense, as provided in this Indemnity
Agreement. In the event of any proceeding, claim or demand by a third party with
respect to which a claim for indemnification is made hereunder, the parties
hereto agree that they will cooperate fully with each other in connection with
the defense or settlement of such matter.

      10. MISCELLANEOUS.

            (a) Any controversy or claim arising out of or relating to this
Indemnity Agreement shall be settled by binding arbitration administered by the
American Arbitration Association in accordance with its Commercial Arbitration
Rules, including the Emergency Interim Relief Procedures (the "AAA Rules"),
and judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof. There shall be one

                                       -5-

<PAGE>

arbitrator, chosen in accordance with the AAA Rules. The place of arbitration
shall be Winston-Salem, North Carolina, unless otherwise agreed by the parties
to the arbitration. The parties shall share equally the cost of the arbitrator's
fees and expenses and any required administrative expenses as they arise.
Judgment upon the award by the arbitrator may be entered in any court having
jurisdiction thereof. As part of such award, the prevailing party (as determined
by the arbitrator) shall be awarded the arbitrator's fees and expenses and any
administrative expenses previously paid by such party. Any award shall be a
conclusive determination of the matter and shall be binding upon Indemnitor and
the Indemnitees and shall not be contested by either of them.

            (b) This Indemnity Agreement, and all indemnities, representations,
covenants, and warranties as set forth herein, shall be binding upon and shall
inure to the benefit of both Indemnitor and the Indemnitees, and the respective
legal representatives, successors, and assigns of Indemnitor and the
Indemnitees; provided that this Agreement may not be assigned by Indemnitor
without the written consent of Lessee.

            (c) This Indemnity Agreement shall survive the closing of the
transactions contemplated by the Purchase and Sale Agreement and any subsequent
transfer of the Premises or any portion thereof or any interest therein.

            (d) This Indemnity Agreement, along with the Purchase and Sale
Agreement, Royalty Agreement and all documents and instruments executed pursuant
thereto, supersedes all prior agreements, whether written or oral, between the
parties with respect to its subject matter and constitutes a complete and
exclusive statement of the terms of the agreement between the parties with
respect to its subject matter. This Indemnity Agreement may not be amended,
supplemented, or otherwise modified except by a written agreement executed by
the party to be charged with the amendment.

            (e) This Agreement will be governed by and construed under the laws
of the State of North Carolina without regard to conflicts-of-laws principles
that would require the application of any other law.

                            (Signature Page Follows)

                                       -6-

<PAGE>

      IN WITNESS WHEREOF, the undersigned PIEDMONT AVIATION SERVICES, INC.,
PIEDMONT/HAWTHORNE HOLDINGS, INC. and PIEDMONT AVIATION COMPONENT SERVICES, LLC
have executed these presents as of the date and year first hereinabove written.

WITNESSES:                                PIEDMONT AVIATION SERVICES, INC.

                                          By:
--------------------------------------        ---------------------------------

                                          Its: President
--------------------------------------         --------------------------------

                                          PIEDMONT/HAWTHORNE HOLDINGS, INC.

                                          By:
--------------------------------------        ---------------------------------

                                          Its: President
--------------------------------------         --------------------------------

                                          PIEDMONT AVIATION COMPONENT
                                          SERVICES, LLC

                                          By: Thomas W. Ferrell
--------------------------------------        ---------------------------------

                                          Its: President
--------------------------------------         --------------------------------

                                       -7-

<PAGE>

                                    EXHIBIT A

                                       -8-

<PAGE>

                                     TABLE 1

                     Maximum Soil Contaminant Concentrations

<TABLE>
<CAPTION>
                                                                             INDUSTRIAL/
                                                                              COMMERCIAL     SOIL-TO-WATER
                                                                             SOIL CLEANUP       MAXIMUM
                                                        RESIDENTIAL SOIL    LEVELS (MG/KG)    CONTAMINANT
                                                         CLEANUP LEVELS          MSCC        CONCENTRATION
                    CONSTITUENT               CAS#           (MG/KG)            LIMITS       (SOIL MG/KG)
-----------------------------------------------------------------------------------------------------------
<S>                                        <C>          <C>                 <C>              <C>
Acenaphthene                                83-32-9                  940             24000               8
Acenaphthylene                              208-96-8                 469             12264              11
Acetone                                     67-64-1                 1564             40880               3
Aliphatics, C5-C8                             N/A                    939             24528              72
Aliphatics, C9-C18                            N/A                   9386            245280            3255
Aliphatics, C19-C36                           N/A                  93860                 #              ##
Anthracene                                  120-12-7                4600            122000             995
Aromatics, C9-C22                             N/A                    469             12264              34
Barium                                     7440-39-3                1095             28616             848
Benzene                                     71-43-2                   22               200          0.0056
Benzo(a)anthracene                          56-55-3                 0.88                 8            0.34
Benzo(b)fluoranthene                        205-99-2                0.88                 8               1
Benzo(g,h,i)perylene                        191-24-2                 469             12264            6720
Benzo(k)fluoranthene                        207-08-9                   9                78              12
Benzo(a)pyrene                              50-32-8                0.088              0.78           0.091
Benzoic Acid                                65-85-0                62571           1635200             112
Bis(chloroehyl)ether (BCEE)                 111-14-1                0.58               5.2          0.0002
Bis(Z-ethylhexyl)phthalate (DEHP)           117-81-7                  46               410            6.67
n-Butylbenzene                              104-51-8                 156              4088               4
sec-Butylbenzene                            135-98-8                 156              4088               3
tert-Butylbenzene                           104-51-8                 156              4088               3
Carbon disulfide                            75-15-0                 1564             40880               4
Chloroform (trichloromethane)               67-66-3                  100               938           0.001
Chloromethane (methyl chloride)             74-87-3                   49               440            0.02
Chromium (Total)                           7440-50-8                  47              1226              27
Chromium III                               16065-83-1              23460            613200              27
Chromium VI                                18540-29-9                 47              1226              27
Chrysene                                    218-01-9                  88               780              38
Dibenz(a,h)anthracene                       53-70-8                0.088              0.78            0.17
Dibenzofuran                                132-64-9                  62              1635             4.7
Dibromochloromethane                        124-48-1                   7                68           0.002
1,2-Dibromoehane (EDB)                      106-93-4              0.0075             0.067      0.00000197
1,2-Dichlorobenzene                         95-50-1                 1400             36000               7
1,3-Dichlorobenzene                         541-73-1                1400             36000              24
1,4-Dichlorobenzene                         106-46-7                  27               240               1
1,1-Dichloroethane                           75-34-3                1560             40000               4
1,2-Dichloroethane (ethylene dichloride)    107-06-2                   7                63          0.0018
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                        SOIL-TO-WATER
                                                                        INDUSTRIAL/        MAXIMUM
                                                    RESIDENTIAL SOIL     COMMERCIAL       CONTAMINANT
                                                     CLEANUP LEVELS     SOIL CLEANUP     CONCENTRATION
          CONSTITUENT                      CAS#         (MG/KG)        LEVELS (MG/KG)    (SOIL MG/KG)
------------------------------------------------------------------------------------------------------
<S>                                     <C>         <C>                <C>              <C>
1,2-Dichloroethene (cis)                156-59-2                 156             4000             0.35
1,2-Dichloroethene (trans)              156-60-5                 320             8200             0.38
1,1-Dichloroethylene                     75-35-4                   1               10            0.045
1,2-Dichloropropane                      78-87-5                   9               84           0.0029
1,3-Dichloropropene (cis and trans)     542-75-6                   4               33           0.0009
2,4-Dimethylphenol                      105-67-9                 312             8176              0.9
Ethyl Acetate                           141-78-6               14078           367920               11
Ethylbenzene                            100-41-4                1560            40000             0.24
Fluoranthene                            206-14-0                 620            16400              276
Fluorene                                 86-73-7                 620            16400               44
Hexachlorobutadiene                      87-68-3                 3.1               73             0.26
2-Hexanone (Methyl n-butyl ketone)      591-78-6                 625            16352              1.9
Indeno (1,2,3-cd)pyrene                 193-39-5                0.88                8                3
Isopropyl benzene (Cumene)               98-82-8                1564            40880                2
Isopropyl ether (diisopropyl ether)     108-20-3                 156             4088             0.37
Lead                                   7439-92-1                 400              400              270
Methanol                                 67-56-1                7821           204400               14
Methyl ethyl ketone (2-Butanone)         78-93-3                9385           24528O              0.7
Methyl ten-butyl ether (MTBE)          1634-04-4                 156             4088             0.92
Methylene chloride                       75-09-2                  85              763             0.02
2-Methylnaphthalene                      91-57-6                  63             1635                3
Naphthalene                              91-20-3                  63             1635             0.58
Phenanthrene                             85-01-8                 469            12264               60
n-Propylbenzene                         103-65-1                 156             4088                2
Pyrene                                  129-00-0                 469            12264              286
Silver                                 7440-22-4                78.2             2044             0.23
Styrene (ethenylbenzene)                100-42-5                3128            81760             2.24
1,1,2,2-Tetrachlorethane                 79-34-5                   3               28            0.001
Tetrachloroethylene(PCE,
   perchloroethylene)                   127-18-4                  12              110           0.0074
1,2,4-Trichlorobenzene                  120-82-1                 156             4088              2.6
Trichloroethylene (TCE)                  79-01-6                  58              520           0.0183
1,2,4-Trimethylbenzene                   95-63-6                 782            20440                8
1,3,5-Trimethylbenzen                   108-67-8                 782            20440                7
Toluene                                 108-88-3                3200            82000                7
Xylenes (mixed)                        1330-20-7               32000           200000                5
</TABLE>

#     Health based level > 100%

##    Considered immobile

<PAGE>

                                     TABLE 2

           2L Standards and Gross Contamination Levels for Groundwater

<TABLE>
<CAPTION>
                                                     North Carolina        Gross
                                                      Groundwater     Contamination
                                                        Quality         Levels for
                                                        Standards*      Groundwater
Compound                                 CAS #        (GWQS) (ug/l)    (GCL) (ug/l)      BASIS
------------------------------------------------------------------------------------------------
<S>                                     <C>          <C>              <C>                <C>
Acenaphthene                             83-32-9           80               2120          SOL
Acenaphthylene                          208-96-8          210               1965          SOL
Acetone                                 67-64-1           700              700000         STD
Anthracene                              120-12-7          2100              2100          STD
Barium                                  7440-39-3         2000             2000000        STD
Benzene                                  71-43-2           1                5000         DWSTD
Benzo(a)anthracene                       56-55-3          0.05                22          SOL
Benzo(b)fluoranthene                     205-99-2         0.047              0.6          SOL
Benzo(g,h,i)perylene                    191-24-2           210               210          STD
Benzo(k)fluoranthene                    207-08-9          0.47              0.47          STD
Benzoic acid                             65-85-0         28000             1450000        SOL
Benzo(a)pyrene                           50-32-8         0.0047              1.5          SOL
Bis(2-chloroethyl)ether (BCEE)          111-44-4          0.031              31           STD
n-Butylbenzene                          104-51-8           70               6900          SOL
sec-Butylbenzene                        135-98-8           70               8500          SOL
tert-Butylbenzene                       104-51-8           70              15000          SOL
Carbon disulfide                         75-15-0           700             700000         STD
Chlorodibromomethane                    124-48-1          0.41               410          STD
Chloromethane (Methyl Chloride)         74-87-3           2.6               2600          STD
Chromium                                7440-50-8          50               50000         STD
Chrysene                                218-01-9           5                  5           STD
Dibenz(a,h)anthracene                    53-70-3         0.0047              0.25         SOL
Dibenzofuran                            132-64-9           28               28000         STD
1,2- Dibromoethane (ethylene
   dibromide)                           106-93-4         0.0004               50         DWSTD
1, 2-Dichlorobenzene                     95-50-1          620               72500         SOL
1, 3-Dichlorobenzene                    541-73-1          620               61500         SOL
1, 4-Dichlorobenzene                    106-46-7           75               39500         SOL
1, 1-Dichloroethane                      75-34-3          700              700000         STD
1, 2-Dichloroethane (ethylene
   dichloride)                          107-06-2         0.38               380           STD
1, 1-Dichloroethylene                   75-35-4            7                7000          STD
1, 2-Dichloroethene (cis)               156-59-2          70               70000          STD
1, 2-Dichloroethene (trans)             156-60-5          70               70000          STD
1, 2-Dichloropropane                    73-87-5          0.56                560          STD
1, 3-Dichloropropene (cis and trans)    542-75-6          0.2               200           STD
2,4-Dimethylphenol                      105-67-9          140             140000          STD
Ethyl Acetate                           141-78-6         2600             2600000         STD
Ethylbenzene                            100-41-4          29               29000          STD
Fluoranthene                            206-44-0         280                280           STD
Fluorene                                86-73-7          280                950           SOL
Hexachloro-1,3-butadlene                87-68-3         0.44                440           STD
</TABLE>

<PAGE>

      2L Standards and Gross Contamination Levels for Groundwater

<TABLE>
<CAPTION>
                                                    North Carolina       Gross
                                                      Groundwater    Contamination
                                                       Quality         Levels for
                                                      Standards*      Groundwater
Compound                                  CAS #     (GWQS) (ug/l)     (GCL) (ug/l)   BASIS
------------------------------------------------------------------------------------------
<S>                                    <C>          <C>              <C>             <C>
2-Hexanone (Methyl n-Butyl Ketone)      591-78-6           280           280000       STD
Indeno (1,2,3-cd) pyrene                193-39-5         0.047               31       SOL
Isopropyl benzene                        98-82-8            70            25000       SOL
Isopropyl ether (Diisopropyl ether)     108-20-3            70            70000       STD
Lead                                   7439-92-1            15            15000       STD
Methanol                                 67-56-1          3500          3500000       STD
Methyl Ethyl Ketone (MEK)                78-93-3           170           170000       STD
2-Methylnaphthalene                      91-57-6            28            12500       SOL
Methyl tert-butyl ether (MTBE)         1634-04-4           200           200000       STD
Methylene chloride                       75-09-2             5             5000       STD
Naphthalene                              91-20-3            21            15500       SOL
Phenanthrene                             85-01-8           210              410       SOL
n-Propylbenzene                         103-65-1            70            30000       SOL
Pyrene                                  129-00-0           210              210       STD
1,1,2,2-Tetrachloroethane                79-34-5          0.17              170       STD
Tetrachloroethylene (PCE)               127-18-4           0.7              700       STD
Toluene                                 108-88-3          1000           257500       SOL
1,2,4-Trichlorobenzene                  120-82-1            70             9500       SOL
1,2,4-Trimethylbenzene                   95-63-6           350            28500       SOL
1,3,5-Trimethylbenzene                  108-67-8           350            25000.      SOL
Xylenes (mixed)                        1330-20-7           530            87500       SOL
</TABLE>

SOL - 50% of the solubility at 25 degrees Celsius

DWSTD - 1000 x federal drinking water standard (40 CFR 141)

STD - 1000 x North Carolina groundwater quality standard (15A NCAC 2L .0202)

* includes interim Groundwater Quality Standards

<PAGE>

                                    EXHIBIT B

1.    Phase I & II Environmental Site Assessment prepared by Environmental
Aspects, Inc. of North Carolina, dated September 30, 2002 (EAI Project 41586).

2.    Phase I Environmental Site Assessment prepared by Environmental Aspects,
Inc. of North Carolina, dated September 27, 2002 (EAI Project 41586).

3.    Groundwater Monitoring Report prepared by Mid-Atlantic Associates, P.A.,
dated August 11, 2000 (Job No. 099R0824.00).

4.    Phase I Environmental Assessment Report of International Technology dated
July 1998.

5.    Phase I Limited Site Assessment (Proposal #P99R - 1409 dated 3/l6/99)
prepared by Mid-Atlantic

                                       -9-

<PAGE>

              EXHIBIT B TO MEMBERSHIP INTEREST PURCHASE AGREEMENT

[ENRISCO LOGO]           ENRISCO, Inc.
                         THE ENVIRONMENTAL RISK ASSESSMENT COMPANY
                         Environmental Consulting, Testing & Inspection Services
                         Asbestos, Hazardous Waste, and UST Services

FACSIMILE COVER SHEET

DATE     05/10/05                        FAX NUMBER        336-423-5104

TO:      CLAUDE BULLER                   FROM:          DAVID JEROSE
         ---------------                                ----------------
         PACS                                           ENRISCO
         -------------------------------------------------------------------

NUMBER OF PAGES INCLUDING COVER 4

SUBJECT       RESULTS OF BASELINE ASSESSMENT

              PIEDMONT AVIATION COMPONENTS LANDING GEAR

MESSAGE       CLAUDE AND SHAUL,

              THIS TABLE IS A SUMMARY OF THE ANALYTICAL RESULTS FROM BOTH THE
              GEOPROBE BORINGS AND MONITORING WELLS. THESE RESULTS ARE THE
              BASELINE FOR LIMCO PRIOR TO COMMENCING OPERATIONS AT THIS
              FACILITY. THESE RESULTS REPRESENT THE CURRENT CONDITION OF
              GROUNDWATER AS OF 5-12-05.

              THESE RESULTS MUST BE COMPARED TO THE BASELINE STUDY PERFORMED ON
              9-17-02 TO DETERMINE WHAT IF ANYTHING HAS CHANGED OVER TIME. THIS
              WILL BE DONE WITH THE HISTORICAL TABLE CURRENTLY BEING PREPARED.

              THE DETECTION LIMITS FROM THE LABORATORY ARE <1 ug/l (PART PER
              BILLION), SAME AS IN 2002. IF YOU LOOK AT THE TABLE, SIX COMPOUNDS
              HAVE STANDARDS BELOW 1 ug/l, SAME AS IN 2002. THE CONCENTRATIONS
              REPORTED WILL NOT CHANGE BY LOWERING THE DETECTION LIMITS, ONLY
              THE NON-DETECTS (<1 RESULTS) MAY CHANGE. FOR COMPARISON TO 2002,
              USE THIS TABLE. FOR ESTABLISHING A BASELINE FOR LIMCO TO RELY ON,
              THEY SHOULD USE THE LOWEST DETECTION LIMIT AVAILABLE.

             Post Office Box 548, Wake Forest, North Carolina 27588
             Telephone: (919) 570-0186 E-mail: enriscoinc@aol.com

<PAGE>

                                     TABLE 1
                         GROUNDWATER ANALYTICAL RESULTS
               Piedmont Aviation Components Landing Gear Facility
            3817 North Liberty Street, Winston-Salem, North Carolina

<TABLE>
<CAPTION>
                         NCAC 2L
                        STANDARDS
        ANALYTE           (ug/l)   GP-1A    GP-2A    GP-3A    GP-4A    GP-5A     DW-1     SW-2     DW-2     SW-1     DW-3     IW-1
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>        <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
      DATE SAMPLED                 5/12/05  5/12/05  5/12/05  5/12/05  5/12/05  5/12/05  5/12/05  5/12/05  5/12/05  5/12/05  5/12/05
    EPA METHOD 8260        ug/l      ug/l     ug/l     ug/l     ug/l     ug/l     ug/l     ug/l     ug/l     ug/l     ug/l     ug/l
        Benzene             1         <1      1.91     2.96      <1       <1      8.17     22.3      <1       <1       <1      <1
      Ethylbenzene          29        <1      7.54      <1       <1       <1       <1       <1       <1       <1       <1      <1
        Toluene            1000       <1      4.15      <1       <1       <1       <1       <1       <1       <1       <1      <1
      M,P - xylenes                   <2       <2       <2       <2       <2       <2       <2       <2       <2       <2      <2
       O - xylene                     <1      2.01      <1       <1       <1       <1       <1       <1       <1       <1      <1
     Total Xylenes         530        <2       <2       <2       <2       <2       <2       <2       <2       <2       <2      <2
          MTBE             200        <1       <1       <1       <1       <1       <1       <1       <1       <1       <1      <1
 1,3,5-Trimethylbenzene    350       1.55      <1       <1       <1       <1       <1      1.52      <1       <1       <1      <1
 1,2,4-Trimethylbenzene    350       3.19     14.1      <1       <1       <1       <1      7.5       <1       <1       <1      <1
    Isopropylbenzene        70        <1      3.7       <1       <1       <1       <1       <1       <1      4.68      <1      <1
      Naphthalene           21       <10      16.5      <10     <10      <10      <10      <10      <10      <10       <10    <10
  P-Isopropyl toluene       NS       1.47     4.75      <1       <1       <1       <1      1.66      <1      1.25      <1      <1
    N-Propylbenzene         70        <1      3.8       <1       <1       <1       <1       <1       <1       <1       <1      <1
   Sec-Butyl benzene        70        <1      2.79      <1       <1       <1       <1       <1       <1      18.8      <1      <1
    N-Butyl benzene         70       1.66     2.58      <1       <1       <1      1.2      1.46      <1      2.43      <1      <1
  Tert- Butyl benzene       70        <1       <1       <1       <1       <1       <1       <1       <1      2.55      <1      <1
 1,4 - Dichlorobenzene      75        <1       52       <1       <1       <1       <1       <1       <1       <1       <1      <1
  1,1 - Dichloroethene      7         <1      3.51      <1       <1      1.25      <1       <1       <1       <1       <1      <1
  1,1 - Dichloroethane     700        <1      7.36      <1       <1      3.15      <1       <1       <1       <1       <1      <1
1,1,1 - Trichloroethane    200        <1       <1       <1       <1      1.06      <1       <1       <1       <1       <1      <1
     Chlorobenzene          50        <1      153       <1       <1       1.3      <1       <1       <1       <1       <1      <1
  1,2 - Dichloroethane     0.38       <1      124      9.48      <1      1.08     1.91     2.51      <1       <1       <1      <1
cis 1,2 - Dichoroethene     70       1.72     6490      <1       <1      24.5      <1      11.4      <1       <1       <1      <1
Tetrachloroethene (PCE)    0.7       455       <1      1.92     2.75     4.32      <1      2.36     1.95     7.58      <1      <1
    Trichloroethene        2.8        <1      6.17     15.5      <1      6.05     1.61     15.4      <1       <1       <1     2.26
  1,2 - Dichloroethane     620        <1      35.9      <1       <1        1       <1       <1       <1      2.39      <1      <1
   Methylene Chloride       5         <1       <1      1.05      <1       <1       <1       <1       <1       <1       <1      <1
 1,1,2-Trichloroethane      NS        <1       <1       <1       <1       <1       <1      2.36      <1       <1       <1      <1
        1,1,2,2 -
   Tetrachlororethane      0.17       <1       <1       <1       <1       <1       <1      1.97      <1       <1       <1      <1
       Chloroform          0.19      2.64      <1      14.3     2.68      <1       <1      4.79      <1       <1       <1      <1
       trans 1,2 -
     Dichloroethene         70        <1      53.5      <1       <1      1.06      <1       <1       <1       <1       <1      <1
     Vinyl Chloride       0.015       <1      8.8       <1       <1       <1       <1       <1       <1       <1       <1      <1
  Carbon tetrachloride     0.3        <1       <1      2.25      <1       <1       <1       <1       <1       <1       <1      <1
  1,3 - Dichlorobenzene    620        <1      19.7      <1       <1       <1       <1       <1       <1       <1       <1      <1
        Chromium            50       300      163      <40     70.4      116      <40      <40      <40      <40      <40     <40
</TABLE>

   Concentrations in BOLD print exceed NCAC 2L Groundwater Quality Standards.
                    NS - No standard for indicated compound.

<PAGE>

                                     TABLE 7

          SUMMARY OF CONSTITUENTS DETECTED IN GROUNDWATER IN JULY 2003

                       FORMER PIEDMONT HAWTHORNE FACILITY
                            3817 NORTH LIBERTY STREET
                          WINSTON-SALEM, NORTH CAROLINA

<TABLE>
<CAPTION>
                                                                  MONITORING WELLS
                                               -------------------------------------------------------
                                   15A NCAC
     DETECTED PARAMETER          2L STANDARD    DW-1      DW-2     DW-3      IW-1      SW-1     SW-2
------------------------------------------------------------------------------------------------------
<S>                              <C>           <C>      <C>       <C>       <C>      <C>       <C>
1,1-Dichloroethane                   700       <0.410    <0.410   0.431 J   <0.410    <0.410   <0.410
1,2-Dichlorobenzene                  620       <0.360    0.411 J  <0.360    <0.360     1.19    <0.360
1,2-Dichloroethane                   0.38       2.19     <0.360   <0.360    <0.360    <0.360    6.88
1,2-Dichloropropane                  0.56      <0.330    <0.330   <0.330    <0.330    <0.330   0.731 J
1,4-Dichlorobenzene                   75       <0.250   0.290 J   <0.250    <0.250    0.880    <0.250
Benzene                               1         13.2     <0.330   <0.330    <0.330    <0.330    22.8
Chlorobenzene                         50       <0.320   0.529 J   <0.320    <0.320    <0.320   <0.320
Chloroform                           0.19 *    <0.360    <0.360   <0.360    <0.360   0.997 J    44.6
Naphthalene                           21        6.82     <0.260   <0.260    <0.260    0.282     4.31
Tert-Butyl methyl ether (MTBE)       200       <0.320    <0.320   <0.320     0.752    <0.320   <0.320
Tetrachloroetheylene                 0.7       <0.330    <0.330   <0.330    <0.330     17.0     1.07
Trichloroetheylene                   2.8        4.32     <0.360   <0.360     1.37      1.14     51.7
</TABLE>

Note:

1)    All concentrations shown are in micrograms per liter ((mu)g/L).

2)    < = less than the Detection Limit shown

3)    J = estimated value less than Reporting Limit but greater than Detection
      Limit

4)    * = EPA SW 846, Method 8260B specifies a Practical Quantitation Limit of 1
      (mu)g/L for chloroform. The Practical Quantitation Limit established by
      General Engineering Laboratories, Inc. for its analysis of chloroform by
      EPA Method 8260B is also 1 (mu)g/L, but the lab's Method Detection Limit
      is lower (0.360 (mu)g/L).

5)    Reported values that exceed respective 15A NCAC 2L Standards are shown in
      bold.

<PAGE>
                                     TABLE 2
               GROUNDWATER ANALYTICAL RESULTS - SEPTEMBER 17, 2002
                 Piedmont Aviation Landing Gear and Support Shop
         3817 North Liberty Street Street, Winston-Salem, North Carolina
                                EAI Job No. 41586

<TABLE>
<CAPTION>
                                                    GROSS
                                    NCAC 2L      CONTAMINANT
        ANALYTE                STANDARDS (ug/l)  LEVELS(ug/l)    GP-l   GP-2   GP-3   GP-4   GP-5   GP-6   GP-7   GP-8
----------------------------------------------------------------------------------------------------------------------
<S>                            <C>               <C>             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
   EPA METHOD 8260                  ug/l             ug/l        ug/l   ug/l   ug/l   ug/l   ug/l   ug/l   ug/l   ug/l
   Trichloroethene                  2.8              2800         <1    1.24   15.4   2.23   6.17    <1    3.67    <1
  Tetrachloroethene                 0.7              700         6.64   10.9    <1     <1    3.04    <1     <1    1.27
  1,2-dichloroethane                 70             70000         <1    33.8   4.05    <1     <1     <1     <1     <1
 Trans l,2-dichloroethane            70             70000         <1    6.25    <1     <1     <1     <1     <1    1.15
Cis 1,2-dichloroethane              0.38             380          <1    686     <1     <1    7.61    <1     <1    19.1
  1,1-dichloroethane                700             700000        <1    2.56    <1     <1    2.51    <1     <1     <1
 1,2-dichlorobenzene                620             72500         <1    13.1    <1     <1     <1     <1     <1     <1
 1,3-dichlorobenzene                620             61500         <1    2.l7    <1     <1     <1     <1     <1     <1
 1,4-dichlorobenzene                 75             39500         <1    5.68    <1     <1     <1     <1     <1     <1
1,2,4-trimethylbenzene              350             28500        31.4   36.2    <1     <1     <1     <1     <1     <1
l,3,5-trimethylbenzene              350             25000        11.2   14.9    <1     <1     <1     <1     <1     <1
   Isopropylbenzene                  70             25000        3.79   1.82    <1     <1     <1     <1     <1     <1
   n-propylbenzene                   70             30000         <1    3.33    <1     <1     <1     <1     <1     <1
   n-butylbenzene                    70              6900        4.59   3.48    <1     <1     <1     <1     <1     <1
  p-isopropyltoluene                 NS               NS         5.99   2.69    <1     <1     <1     <1     <1     <1
   sec-butylbenzene                  70              8500        4.29   2.54    <1     <1     <1     <1     <1     <1
      Chloroform                  0.00019            190          <1     <1    6.99   4.57    <1     <1    4.36    <1
 Carbon tetrachloride                NS               NS          <1     <1    2.73    <1     <1     <1     <1     <1
    Vinyl chloride                 0.015              15          <1    1.64    <1     <1     <1     <1     <1     <1
    Chlorobenzene                    NS               NS          <1    4.17    <1     <1    1.53    <1     <1    1.24
       Benzene                       1               5000         <1     <1    2.71    <1     <1     <1    1.49    <1
       Toluene                      1000            100000       6.64    <1     <1     <1     <1     <1     <1     <1
     Ethylbenzene                    29             29000         <1    1.79    <1     <1     <1     <1     <1     <1
      M,P - xylene                                               2.94   5.26    <2     <2     <2     <2     <2     <2
       O - xylene                                                6.92   3.78    <1     <1     <1     <1     <1     <1
    Total Xylenes                   530             87500        9.86   9.04    <1     <1     <1     <1     <1     <1
     Naphthalene                     21             15500        12.4   11.1   <10     <10    <10   <10     <10    <10
       Barium                       2000           2000000        865    828   130    1220    640    637    751    708
       Chromium                      50             50000         <80    <80   <80     134    <80    <80    <80    <80
          pH                                                     5.09   5.54   5.72   5.85   5.76    5.3   6.95   5.36
</TABLE>

Notes:                                    Concentrations in BOLD print exceed
                                          NCAC 2L Groundwater Quality Standards.

NS - No standard for indicated compound.  Concentrations in ITALICIZED print
                                          exceed Gross Contaminant Levels.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]