Document:

AeroCentury Purchases F100 11310

    

      

      

      

      AIRCRAFT
        SALE AGREEMENT

      

      

      dated
        ___
        June 2007

      

      between

      

      

      

      Pembroke
        Capital Aircraft (Shannon) Limited

      

      as

      

      Seller

      

      

      and

      

      

      AeroCentury
        Corp.

      

      as

      

      Purchaser

      

      

      

      

      

      

      

      in
        respect of

       

      One
        FOKKER model F.28 MK 0100 Aircraft

       

      Also
        described: 

      In
        the FAA records as - F.28 MK 0100 

      In
        the International Registry drop down menu as - FOKKER model F100

      and

      In
        the International Registry by free text entry as - model
        F28MK0100

      and

      In
        the Type Certificate Data Sheet as - FOKKER model F.28 Mark
        0100

      

      MSN
        11310

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      CONTENTS

      
        
          	 	 Clause 	
                   Page

                
	
                   1.

                	Definitions and
                  Interpretation	
                   3

                
	
                   2.

                	Sale and Purchase	
                   7

                
	
                   3.

                	Payments	
                   7

                
	
                   4.

                	Delivery and Acceptance	
                   9

                
	
                   5.

                	Conditions Precedent - Seller	
                   11

                
	
                   6.

                	Conditions Precedent - Purchaser	
                   12

                
	
                   7.

                	Representations and Warranties of
                  Seller	
                   14

                
	
                   8.

                	Representations and Warranties of
                  Purchaser	
                   15

                
	
                   9.

                	Taxes 	
                   17

                
	
                   10.

                	Warranties and Disclaimers	
                   17

                
	
                   11.

                	Indemnification	
                   18

                
	
                   12.

                	Insurance 	
                   20

                
	
                   13.

                	Assignment/Transfer	
                   21

                
	
                   14.

                	Confidentiality	
                   21

                
	
                   15.

                	Miscellaneous	
                   21

                
	
                   16.

                	Notices	
                   22

                
	
                   17.

                	Governing Law and
                  Jurisdiction   	
                   23

                

        

          

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      THIS
        AIRCRAFT SALE AGREEMENT
        is made
        on ___ June 2007

      

      between

      

      
        	
                (1)

              	
                Pembroke
                  Capital Aircraft (Shannon) Limited,
                  a
                  limited liability company incorporated under the laws of Ireland
                  and
                  having its principal place of business at Shannon Airport House,
                  Shannon,
                  Co. Clare, Ireland (the "Seller");
                  and

              

      

      

      
        	
                (2)

              	
                Aero
                  Century Corp.,
                  a
                  corporation incorporated under the laws of the State of Delaware,
                  United
                  States and having its principal place of business at 1440 Chapin
                  Ave,
                  Suite 310, Burlingame, California 94010, USA (the "Purchaser").

              

      

      

      

      RECITAL

      

      The
        Seller has agreed to sell and the Purchaser has agreed to purchase the Aircraft
        on the terms and conditions set out below.

      

      NOW
        IT IS AGREED
        as
        follows:

      

      1. Definitions
        and Interpretation 

       

      1.1 In
        this
        Agreement capitalized terms shall have the following meanings unless the
        context
        requires otherwise:

       

      "Aircraft" means
        the
        FOKKER model F.28 MK 0100 Aircraft (also described: in the FAA records as
        - F.28
        MK 0100, in the International Registry drop down menu as - FOKKER model F100,
        and in the International Registry by free text entry as - model F28MK0100
        and in
        the Type Certificate Data Sheet as - FOKKER model F.28 Mark 0100) more
        particularly described in Schedule 1 and includes the Engines, Parts and
        any
        other items of equipment installed in, or furnished with, the Aircraft at
        delivery of the Aircraft to Lessee under the Lease (excluding those items
        of
        equipment, furnishings and parts which have, or will have been installed
        on the
        Aircraft by Lessee on or prior to the Delivery Date and ownership of which
        is
        not required, pursuant to the provisions of the Lease, to vest in or be
        transferred to the Seller but including those items of equipment, furnishings
        and parts which have, or will have been removed from the Aircraft by Lessee
        on
        or prior to the Delivery Date and ownership of which is, pursuant to the
        provisions of the Lease, vested in or required to be vested in the Seller)
        and,
        where the context permits, references to the Aircraft shall include the Aircraft
        Documents;

       

      "Aircraft
        Documents"
        has the
        meaning given to it in the Lease and all records, manual and documentation
        relating to the Aircraft that are in the possession of Lessor;

       

      "APU
        Maintenance Reserve Rate Compensation"
        means
        the compensation for loss of revenue during the term of the Lease as a result
        of
        Amendment No.1 to the Lease; 

       

      "Bill
        of Sale"
        means a
        bill of sale from the Seller to the Purchaser substantially in the form of
        Schedule 2; 

       

      "Business
        Day" means
        a
        day, other than a Saturday or a Sunday, on which banks are open for business
        in
        Dublin, Ireland and San Francisco, California, USA;

       

      "Cape
        Town Convention"
        means,
        collectively, the Convention on International Interests in Mobile Equipment
        and
        the Protocol to the Convention on International Interests in Mobile Equipment
        on
        matters specific to Aircraft Equipment dated 16 November 2001;

       

      "Claims"
        has the
        meaning given to it in Clause 11.1 of this Agreement;

       

      "Default" has
        the
        meaning given to it in the Lease;

       

      "Delivery" means
        the
        time at which the Purchaser shall obtain title to the Aircraft from the Seller
        in accordance with this Agreement;

       

      "Delivery
        Date" means
        the
        date on which Delivery shall occur;

       

      "Delivery
        Location" means
        a
        location as agreed between Seller and Purchaser in accordance with Clause
        9;

       

      "Deposit"
        the sum
        of the First Instalment and the Second Instalment;

       

      "Dollars" and
        "US$"
        means
        the lawful currency for the time being of the United States of
        America;

       

      "Effective
        Time"
        has the
        meaning ascribed to it in the Lease Novation;

       

      "Effective
        Time Notice"
        has the
        meaning ascribed to it in the Lease Novation;

       

      "Engines" means
        the
        engines described in Schedule 1;

       

      "Expected
        Delivery Date"
        means
        on or about 27 or 28 June 2007 provided Lessee fully cooperates or such
        other date as the parties may agree but in no event later than 04 July
 2007;

       

      "First
        Instalment"
        means
        the sum of US$ 150,000.-;

       

      "Governmental
        Entity" includes
        (i) any national government, political subdivision thereof or local jurisdiction
        therein; (ii) any board, commission, department, division, organ,
        instrumentality, court or agency of any thereof, however constituted; and
        (iii)
        any association, organisation or institution of which any thereof is a member
        or
        to whose jurisdiction any thereof is subject or in whose activities any thereof
        is a participant;

       

      "Inspection
        Notice"
        means
        the notice received on 30 April, 2007 by Seller from Purchaser stating that
        the
        results of its inspection of the Aircraft are acceptable;

       

      "International
        Interest"
        has the
        meaning set forth in the Cape Town Convention;

       

      "International
        Registry"
        means
        the international registry established pursuant to the Cape Town
        Convention;

      

      "Law"
        includes (i) any statute, decree, constitution, regulation, order or other
        directive of any Governmental Entity; (ii) any treaty, pact, compact or other
        agreement to which any Governmental Entity is a signatory or party; (iii)
        any
        judicial or administrative interpretation or application of any thereof;
        and
        (iv) any amendment or revision of any thereof;

       

      "Lease"
        means
        the aircraft lease agreement dated 23 January 2007 between the Lessor,
        the Lessee and the Lease Guarantor as amended from time to time;

       

      "Lease
        Documents"
        has the
        meaning given to it in the Lease Novation;

       

      "Lease
        Guarantor"
        means
        Bon Air Beleggings en Participatie Maatschappij N.V. (BBPM), a company
        incorporated and existing under the laws of the Netherlands Antilles and
        having
        its principal place of business at Kaya L.D. Gerhardts # 8, Bonaire,
        Netherlands Antilles;

       

      "Lease
        Novation"
        means
        the Aircraft Lease Amendment and Novation Agreement to be entered into on
        or
        prior to the Delivery Date between the Lessor, the Purchaser, the Lessee
        and the
        Lease Guarantor in respect of the Lease and the Lessee Certificate of
        Acceptance;

       

      "Lessee"
        means
        Dutch Antilles Express B.V., a company incorporated and existing under the
        laws
        of the Netherlands Antilles and having its principal place of business at
        Plasa
        Medardo S.V. Thielmann Z/N, Bonaire, Netherlands Antilles;

       

      "Lessee
        Certificate of Acceptance"
        means
        the Certificate of Acceptance dated 24 January 2007 delivered by the
        Lessee to the Lessor under the Lease;

       

      "Lessor"
        means
        Germania Fluggesellschaft mbH a company incorporated under the laws of the
        Federal Republic of Germany and having its principal place of business at
        Riedemannweg 58, 13627 Berlin, Germany;

       

      "Lessor
        Lien"
        has the
        meaning given to it in the Lease;

       

      "Maintenance
        Reserves"
        has the
        meaning given to it in the Lease;

       

      "Material
        Damage"
        means
        damage to the Aircraft, the cost of repair of which shall, in the reasonable
        opinion of Fokker Services B.V. exceed US$ 500,000.-;

       

      "Nationality
        Registry"
        means
        the nationality registry in the Netherlands Antilles (as such registry is
        established under The National Decree Supervision Aviation, as amended
        (Landsbeluit
        Toezicht Luchtvaart, PB
        2003,
        56))
        (Nationaliteitsregister van de Nederlandse Antillen);

       

      "Novated
        Lease"
        means
        the Lease as novated and amended by the Lease Novation;

       

      "Other
        Aircraft"
        means
        the Fokker 100 aircraft with the manufacturer's serial number
        11331;

       

      "Part"
        has the
        meaning given to it in the Lease;

       

      "Permitted
        Lien"
        has the
        meaning given to it under the Lease.

       

      "Purchase
        Price"
        means
        US$ 6,320,000.-;

       

      "Purchaser
        Indemnitees"
        means
        the Purchaser and JetFleet Management Corp. and each Lender and including
        any of
        their respective affiliates, successors and assigns, shareholders, directors,
        officers, servants, agents and employees;

       

      "Rent"
        has the
        meaning given to it in the Lease;

       

      "Second
        Instalment"
        means
        the sum of US$ 300,000.-;

       

      "Security
        Deposit" has
        the
        meaning given to it in the Lease;

       

      "Security
        Interest" means
        any
        mortgage, charge, lien, pledge, encumbrance, hypothecation, lease, sublease,
        security interest, judgment, writ, order, national or international interest,
        or
        right of possession of any kind whatsoever, however and wherever created
        or
        arising and whether or not consensual (including any arrangement or agreement
        to
        give or effect any of the foregoing and any conditional sale or other title
        retention agreement);

       

      "Seller
        Indemnitees"
        means
        the Seller, Germania Express GmbH, Lessor, Deutsche Leasing AG, Deutsche
        Sparkassen Leasing AG & Co. KG, Pembroke Capital Shannon Limited, and
        including any of their respective affiliates, successors and assigns,
        shareholders, directors, officers, servants, agents and employees; 

       

      "Taxes"
        means
        any and all present and future sales, use, personal property, customs, ad
        valorem, value added, consumption, turnover, stamp, interest equalisation,
        income, gross receipts or other taxes, fees, withholdings, imposts, duties,
        deductions, levies or other charges of any nature together with any penalties,
        fines or interest thereon, imposed, levied or assessed by, or otherwise payable
        to, any Government Entity;

       

      "Total
        Loss"
        has the
        meaning given to it in the Lease; and

       

      "Transaction
        Documents" means
        this Agreement, the Lease Novation, the Effective Time Notice, the Bill of
        Sale
        and all notices, consents, confirmations and certificates and other documents
        related thereto and, in relation to a particular person, means such documents
        as
        that party has executed or is to execute.

       

      1.2 

      (a) Clause
        headings are for ease of reference only.

       

      (b) References
        in this Agreement to Clauses, paragraphs or Schedules are, unless otherwise
        specified, to be construed as references to clauses, paragraphs of and Schedules
        to this Agreement.

       

      (c) References
        in this Agreement to any statute or other legislative provision shall include
        any statutory or legislative modification or re-enactment thereof, or any
        substitution therefore and all regulations relating thereto, issued or
        promulgated by a Government Entity.

       

      (d) References
        in this Agreement to "relevant
        statutory provision"
        shall
        include references to any provision of the laws of any jurisdiction which
        may
        from time to time be applicable.

       

      (e) References
        in this Agreement to any agreement, document or instrument, except in clause
        7.2
        hereof, shall include such agreement, document or instrument as the same
        may
        from time to time be varied, amended, supplemented, novated or
        substituted.

       

      (f) References
        in this Agreement to the word "person"
        or
        "persons"
        include, without limitation, individuals, firms, corporations, government
        agencies, authorities and other bodies, incorporated or unincorporated and
        whether having distinct legal personality or not.

       

      (g) References
        in this Agreement to any party hereto or any person include references to
        any
        successor or permitted assign of such party or person.

       

      (h) References
        in this Agreement to the Aircraft include any part of the Aircraft, and,
        where
        the context so admits, any of the Aircraft Documents, and references to any
        part
        of the Aircraft include any part of any Engine.

       

      (i) Unless
        the context otherwise requires, words denoting the singular number shall
        include
        the plural and vice versa.

       

      (j) Reference
        in this Agreement to the word "written"
        or
        "in
        writing"
        shall
        include any means of visible reproduction.

      

      2. Sale
        and Purchase

       

      2.1 The
        Seller agrees to sell to the Purchaser, and the Purchaser agrees to purchase
        from the Seller, the Aircraft for the Purchase Price at the Delivery Location
        on
        the terms and conditions contained herein.

       

      2.2 The
        Seller agrees to cause Lessor to transfer the actual balance of the Security
        Deposit and the Maintenance Reserves held by Lessor at Delivery and the Rent
        received in respect of any period falling after Delivery to the Purchaser
        on the
        Delivery Date. Such transfer may be made by way of a set-off against the
        Purchase Price.

      

      3. Payments

       

      3.1 The
        Purchase Price shall be paid by the Purchaser to the Seller as
        follows:

      (a) the
        First
        Instalment prior to the date of this Agreement;

       

      (b) the
        Second Instalment upon execution of this Agreement; and

       

      
        	 	
                (c)

              	
                the
                  Purchase Price minus the Deposit and the APU Maintenance Reserve
                  Rate
                  Compensation amounting to US$ 44,587.39 on the Delivery Date (also
                  subject
                  to Clause 2.2 above)

              

      

       

      to
        the
        following bank account of Seller:

       

      Correspondent
        Bank:     Bank
        of New
        York

      Swift
        Code:          IRVTUS3N

      ABA
        No.:      021000018

      Account
        No.:      8900338067

      

      For
        Account of:     Ulster
        Bank Limited, Dublin

      Swift
        Code:      ULSBIE2D

      Account
        Name:     Pembroke
        Capital Aircraft (Shannon) Limited

      Account
        No.:  1113316102

      Reference:  Aerocentury
        MSN 11310

      

      or
        such
        other bank account as Seller may advise in writing.

      

      3.2 All
        payments hereunder shall be made in Dollars and in immediately available
        funds
        so that the recipient receives credit for the full amount of such payment
        on the
        due date. All such payments shall be made in full without any deduction or
        withholding (whether in respect of setoff (except as set forth in clause
        2.2),
        counterclaim, duties, Taxes imposed by any Governmental Entity, charges or
        otherwise howsoever), unless the payer is prohibited by law from doing so,
        in
        which event the payer shall (i) ensure that the deduction or withholding
        does
        not exceed the minimum amount legally required; (ii) forthwith pay to the
        recipient such additional amount as shall result in the net amount received
        by
        the recipient being equal to the amount which would have been received by
        the
        recipient had such a deduction or withholding not been made; (iii) pay to
        the
        relevant taxation or other authorities, within the period for payment permitted
        by applicable law, the full amount of the deduction or withholding; and (iv)
        upon request in writing from the recipient to the payer deliver to the recipient
        receipts (if any) paid or payable in respect of any deduction or withholding
        as
        aforesaid.

       

      3.3 

      
        	 	
                (a)

              	
                Seller
                  and Purchaser acknowledge and agree that the Deposit (without any
                  interest) shall be refundable to Purchaser in the following
                  instances:

              

      

       

      
        	 	
                (i)

              	
                in
                  the event of termination of this Agreement under Clauses 4.1, 4.2
                  or 4.3
                  below;

              

      

       

      
        	 	
                (ii)

              	
                in
                  the event that any of the Conditions Precedent to Purchaser's obligations
                  (as set forth in Clause 6 below) are not met prior to the Expected
                  Delivery Date Purchaser may terminate this Agreement by written
                  notice to
                  Seller and upon receipt of such notice Seller shall refund the
                  Deposit to
                  Purchaser;

              

      

       

      
        	 	
                (iii)

              	
                in
                  the event that all conditions precedent to Seller's obligations
                  have been
                  met and Purchaser is ready, willing and able to proceed with sale
                  hereunder and Seller breaches its obligations to sell and deliver
                  the
                  Aircraft to Purchaser pursuant to the terms and conditions contained
                  in
                  this Agreement, Purchaser may terminate this Agreement by written
                  notice
                  to Seller and upon receipt of such notice Seller shall refund the
                  Deposit
                  to Purchaser.

              

      

       

      
        	 	
                (b)

              	
                In
                  the event all conditions precedent to Purchaser's obligations have
                  been
                  met and Seller is ready, willing and able to proceed with the sale
                  hereunder and Purchaser breaches its obligations to purchase the
                  Aircraft
                  and pay the Purchase Price pursuant to the terms and conditions
                  contained
                  in this Agreement, Seller may terminate this Agreement by written
                  notice
                  to Purchaser and the Deposit may be retained by
                  Seller.

              

      

       

      

      4. Delivery
        and Acceptance

       

      4.1 Immediately
        prior to Delivery, Purchaser shall be entitled to a final inspection of the
        Aircraft (the "Final
        Inspection")
        for
        the purposes of verifying that no Material Damage or Total Loss of the Aircraft
        has occurred since the issuance of the Inspection Notice. The Seller and
        the
        Purchaser shall use all reasonable endeavours to procure that Delivery occurs
        on
        the Expected Delivery Date while the Aircraft is at the Delivery Location
        and at
        such time as the parties may reasonably agree, or as soon after the Expected
        Delivery Date as is reasonably possible and always subject to the terms and
        conditions of this Agreement and in no event shall the Expected Delivery
        Date
        extend beyond 04 July 2007.

       

      For
        the
        avoidance of doubt, if Delivery does not occur on or prior to the Expected
        Delivery Date (and the parties have not agreed to amend such date to a later
        date) each party shall have the right and option to terminate this Agreement
        upon notice to the other, whereupon the Seller shall refund the Deposit (without
        any interest) to Purchaser and thereafter, this Agreement shall terminate
        and
        neither party shall have any further rights or obligations hereunder other
        than
        survival of the parties' respective obligations under Clause 14 hereof. Further,
        the provisions of Clause 4.4 shall not entitle the Seller to delay Delivery
        until the date after the Expected Delivery Date.

       

      4.2 If
        the
        Aircraft, prior to the sale and Delivery thereof to Purchaser, suffers a
        Total
        Loss, Seller shall notify the Purchaser thereof as soon as practicable and
        refund the Deposit (without interest) to Purchaser. After receipt of such
        notice
        and refund of the Deposit to Purchaser, this Agreement shall terminate and
        thereafter, neither party shall have any further rights or obligations (other
        than the parties’ respective obligations under Clause14) hereunder.

       

      4.3 If,
        prior
        to Delivery, the Aircraft suffers any damage for which the costs of the repair
        exceeds $50,000.-, Seller will notify Purchaser thereof as soon as practicable
        (after having been notified by Lessee in respect thereof) and Purchaser may
        request the immediate evaluation of such damage by Fokker Services B.V. in
        order
        to determine whether or not Material Damage to the Aircraft has occurred.
        If it
        is determined by Fokker Services B.V. that Material Damage has occurred,
        then
        the cost of the evaluation shall be for the account of the Seller, and Purchaser
        shall have the right to either, proceed with sale and delivery hereunder
        (relying on the Lessee to effect repair in accordance with the Lease) or,
        notify
        Seller of Purchaser’s termination of this Agreement, and upon receipt of
        Purchaser’s termination notice, Seller shall refund the Deposit (without
        interest) to Purchaser and upon such refund and notice by Purchaser of such
        termination, this Agreement shall terminate and thereafter, neither party
        shall
        have any further rights or obligations (other than the parties’ respective
        obligations under Clause 14) hereunder. If the damage is determined not to
        be
        Material Damage, Purchaser, notwithstanding such damage, will accept and
        purchase the Aircraft in accordance with the terms hereunder and the cost
        of the
        evaluation by Fokker Services B.V. shall be for the account of the
        Purchaser.

       

      4.4 The
        Seller shall not be liable for or be deemed to be in breach of this Agreement
        in
        respect of any delay or failure in tendering the Aircraft on the Expected
        Delivery Date if such delay or failure results from any occurrence that is
        beyond the reasonable control of the Seller.

       

      4.5 On
        the
        Delivery Date, subject to satisfaction or explicit waiver of the conditions
        precedent set out in Clauses 5 and 6, the Purchaser shall pay to the Seller
        the
        Purchase Price and upon receipt by the Seller of the Purchase Price, the
        Seller
        and the Purchaser shall execute and deliver to the other party, the Bill
        of Sale
        and the parties shall make the Lease Novation effective. Effective as and
        from
        the Delivery, the Seller hereby consents to the Purchaser's registering the
        sale
        of the Aircraft as and International Interest, as described and defined in
        the
        Cape Town Convention, to be validly registered with, and searchable at, the
        International Registry (including using all airframe model numbers noted
        herein
        in connection with such registration) and shall take such actions (including
        without limitation becoming (or causing its counsel) to become a "transaction
        user entity" with the International Registry and supplying its consent) as
        is
        reasonably required for such International Interest to be noted on the
        International Registry.

       

      4.6 As
        between the Seller and the Purchaser, the risk of loss of, or damage to,
        the
        Aircraft shall pass from the Seller to the Purchaser upon delivery of the
        Bill
        of Sale by the Seller to the Purchaser.

       

      4.7 The
        Aircraft to be sold hereunder shall be delivered to the Purchaser "AS IS
        WHERE
        IS WITH ALL FAULTS" at the Delivery Location and SUBJECT
        TO EACH AND EVERY DISCLAIMER OF WARRANTY AND REPRESENTATION AS SET FORTH
        IN
        CLAUSE 10.
        Subject
        to the foregoing provisions of Clause 4 and the due fulfilment or explicit
        waiver of all the conditions precedent referred to in Clauses 5 and 6, the
        Purchaser shall unconditionally accept the Aircraft for all purposes hereunder
        at Delivery in the condition in which it exists at Delivery and shall execute
        and deliver to Seller the countersigned Bill of Sale. Acceptance of the Aircraft
        by the Purchaser at Delivery and execution by the Purchaser of the Bill of
        Sale
        shall constitute an acknowledgement by the Purchaser that the Aircraft is
        in the
        condition required by the provisions of this Agreement.

       

      4.8 As
        soon
        as practicable after Delivery, Seller shall procure that Lessor, at Purchaser’s
        risk, cost and expense, shall ship to a United States location to be specified
        by Purchaser, all Aircraft Documents not in the possession of the Lessee
        but in
        the possession of Lessor at time of Delivery. Seller shall reimburse Purchaser's
        reasonable costs and expenses of transportation in respect of such shipment
        within 30 days after Seller's receipt of Purchaser's supported
        invoice.

      

      5. Conditions
        Precedent - Seller

       

      5.1 The
        Seller’s obligation to sell the Aircraft hereunder is subject to the following
        express conditions precedent on the Delivery Date:

       

      (a) receipt
        by the Seller of the Purchase Price, as provided for in Clause 4.5;

       

      (b) receipt
        by the Seller of a copy certified by an officer of the Purchaser to be a
        true,
        complete and up-to-date copy of the constitutive documents of the
        Purchaser;

       

      (c) receipt
        by the Seller of a copy certified by an officer of the Purchaser, to be a
        true,
        complete and up-to-date copy of resolutions of the board of directors (or
        other
        appropriate governing body) of the Purchaser, which are in full force and
        effect
        and not amended or rescinded:

       

      (i) approving
        the terms of, and the transactions contemplated by the Transaction Documents;
        and

       

      (ii) authorising
        a specified person or persons to sign and deliver on behalf of the Purchaser,
        the Transaction Documents and any notices or other documents to be given
        or
        entered into 

      pursuant
        thereto, and

       

      (iii) a
        specimen signature of each such person;

       

      (d) the
        representations and warranties of the Purchaser in Clause 8 of this Agreement
        being true and correct on the Delivery Date as though such representations
        and
        warranties have been made as of the Delivery Date;

       

      (e) the
        Purchaser having complied with its material obligations under the Transaction
        Documents required to have been performed at or before Delivery;

       

      (f) receipt
        by the Seller of the conditions precedent which it is entitled to receive
        pursuant to Clause 5.4 of the Lease Novation;

       

      (g) receipt
        by the Seller of a letter from the Purchaser’s process agent in Germany
        addressed to the Purchaser agreeing to act as the Purchaser’s process agent in
        connection with the Transaction Documents;

       

      (h) receipt
        by the Seller of evidence reasonably satisfactory to the Seller demonstrating
        that the insurances required to be effected pursuant to Clause 12 of this
        Agreement have been effected;

       

      (i) no
        change
        having occurred after the date of this Agreement in any applicable law which
        would make it illegal for the Seller to perform any of its obligations under
        this Agreement (and any other documents or agreements to be entered into
        pursuant hereto), provided that if any such change has occurred, the parties
        shall use all reasonable cooperative endeavours to restructure the transaction
        contemplated by such documents so as to avoid the aforementioned
        illegality;

       

      (j) the
        receipt by the Seller of the Lease Novation duly executed by the Lessor,
        the
        Lessee, the Lease Guarantor and the Purchaser and of the Effective Time Notice
        (as defined in the Lease Novation) executed by the Purchaser, Lessee, Lease
        Guarantor and the Lessor, held in escrow to the order of the
        Purchaser;

       

      (k) subject
        always to Clause 4.2 and 4.3, no Total Loss or Material Damage having
        occurred;

       

      (l) the
        receipt by the Seller of a tax opinion from Seller’s own tax counsel in respect
        of the transaction set forth hereunder reasonably satisfactory by Seller;
        and

       

      (m) no
        action, suits or proceedings or any governmental action shall have been
        instituted or be threatened before any court or before or by any Governmental
        Entity, nor shall any order, judgment or decree have been issued or proposed
        to
        be issued by any court or Governmental Entity, as of the Delivery Date,
        questioning the validity or legality of this Agreement or the other Transaction
        Documents or the transactions contemplated hereby or thereby or the ability
        of
        the parties hereto to consummate the transactions contemplated hereby or
        thereby.

       

      5.2 The
        conditions precedent in Clause 5.1 are for the Seller’s benefit and may be
        waived in writing, in whole or in part by the Seller.

      

      6. Conditions
        Precedent - Purchaser

       

      6.1 The
        Purchaser’s obligation to purchase the Aircraft hereunder is subject to the
        following express conditions precedent on the Delivery Date: 

       

      (a) receipt
        by the Purchaser of a copy certified by an officer of the Seller to be a
        true,
        complete and up-to-date copy of the constitutive documents of the
        Seller;

       

      (b) a
        copy
        certified by an officer of the Seller, to be a true, complete and up-to-date
        copy of resolutions of the board of directors (or other appropriate governing
        body) of the Seller, which are in full force and effect and not amended or
        rescinded:

       

      (i) approving
        the terms of, and the transactions contemplated by the Transaction Documents;
        and

       

      (ii) authorising
        a specified person or persons to sign and deliver on behalf of the Seller,
        the
        Transaction Documents and any notices or other documents to be given or entered
        into 

      pursuant
        thereto, and

       

      (iii) a
        specimen signature of each such person;

       

      (c) the
        representations and warranties of the Seller in Clause 7 of this Agreement
        being
        true and complete on the Delivery Date as though such representations and
        warranties have been made as of the Delivery Date;

       

      (d) the
        Seller having complied with its material obligations under the Transaction
        Documents required to have been performed at or before Delivery;

       

      (e) the
        confirmation on or before 30 April 2007 that Purchaser has completed the
        First
        Inspection of the Aircraft to its satisfaction;

       

      (f) receipt
        by the Purchaser of the conditions precedent set out in Clause 5.1 of the
        Lease
        Novation;

       

      (g) receipt
        by the Purchaser of a letter from the Seller’s process agent in Germany
        addressed to the Seller agreeing to act as the Seller’s process agent in
        connection with the 

      Transaction
        Documents;

       

      (h) no
        change
        having occurred after the date of this Agreement in any applicable law which
        would make it illegal for the Purchaser to perform any of its obligations
        under
        this Agreement (and any other documents or agreements to be entered into
        pursuant hereto), provided that if any such change has occurred the parties
        shall use all reasonable cooperative endeavours to restructure the transaction
        contemplated by such documents so as to avoid the aforementioned
        illegality;

       

      (i) receipt
        by the Purchaser of the Lease Novation duly executed by the Lessee, Lease
        Guarantor and the Lessor and of the Effective Time Notice (as defined in
        the
        Lease Novation) executed by the Lessor, Lease Guarantor and Lessee, held
        in
        escrow to the order of the Purchaser;

       

      (j) receipt
        by the Purchaser of tax and enforceability opinions from its own counsel
        in
        respect of the Transaction Documents and the transactions contemplated thereby
        reasonably satisfactory by Purchaser;

       

      (k) receipt
        by the Purchaser of certified copies of the original Lease
        Documents;

       

      (l) subject
        always to Clause 4.2 and Clause 4.3, no Total Loss or Material Damage having
        occurred;

       

      (m) no
        action, suits or proceedings or any governmental action shall have been
        instituted or be threatened before any court or before or by any governmental
        agency, nor shall any order, judgment or decree have been issued or proposed
        to
        be issued by any court or governmental agency, as of the Delivery Date,
        questioning the validity or legality of this Agreement or the other Transaction
        Documents or the transactions contemplated hereby or thereby or the ability
        of
        the parties hereto to consummate the transactions contemplated hereby or
        thereby;

       

      (n) the
        Lease
        shall be in full force and effect and no Default shall have occurred and
        be
        continuing and no event shall have occurred and no condition shall be existing
        which could reasonably be expected to materially adversely affect the Lessee’s
        financial or business prospects, Lessee’s performance under the Lease and/or the
        Purchaser's and its lender’s security position in the Aircraft;

       

      (o) Prior
        to
        Delivery, Seller shall have established a valid and subsisting account with
        the
        International Registry as a transacting user entity and have appointed an
        administrator and/or have consented to the appointment of a professional
        user
        reasonably acceptable to Purchaser;

       

      (p) receipt
        by the Purchaser of evidence of termination of any headlease existing prior
        the
        Effective Day; and

       

      (q) receipt
        by the Purchaser of copies of the bills of sale (from US Airways and through
        any
        intermediate owners) evidencing Seller's title to the Aircraft.

       

      6.2 The
        conditions precedent specified in Clause 6.1 are for the Purchaser’s benefit and
        may be waived in writing, in whole or in part by the Purchaser.

      

      7. Representations
        and Warranties of Seller

       

      7.1 The
        Seller hereby represents and warrants, all such representations and warranties
        being continuing, to the Purchaser, in each case in relation to itself only
        and
        in relation to the Transaction Documents to which it is a party only,
        that:

       

      (a) it
        is a
        limited liability company duly organised and legally existing under the laws
        of
        Ireland and has the power and authority to carry on its business as presently
        conducted and to perform its obligations under, and execute and deliver,
        each of
        the Transaction Documents and each of the Transaction Documents has been
        duly
        authorised by all necessary corporate action on its part, and does not require
        any approval, direct or indirect, of its shareholders or any approval or
        consent
        of any trustee or holder or holders of any of its indebtedness (or if such
        approval is required, such approval has been obtained);

       

      (b) each
        of
        the Transaction Documents has been duly entered into and delivered by it
        and
        upon due authorisation, execution and delivery by the other parties thereto
        will
        constitute its legal, valid and binding obligation enforceable against it
        in
        accordance with its terms except as enforcement may be limited by applicable
        bankruptcy, insolvency, fraudulent conveyance, reorganisation, moratorium
        or
        other similar laws affecting creditors’ rights generally, or by equitable
        principles (regardless of whether enforcement is sought in a proceeding in
        equity or at law);

       

      (c) neither
        the execution and delivery of the Transaction Documents nor the consummation
        of
        the transactions contemplated thereby, nor the compliance by it with any
        of the
        terms and provisions thereof will contravene any law applicable to it or
        any
        order, writ, injunction or decree of any court or governmental agency or
        instrumentality binding on it or result in any breach of, or constitute a
        default under, or result in the creation of any lien, charge or encumbrance
        upon
        the Aircraft under any indenture, mortgage, chattel mortgage, deed of trust,
        conditional sales contract, bank loan or credit agreement, corporate charter
        or
        by-laws, or other agreement, instrument or other undertaking to which it
        is a
        party or by which it or its properties or assets may be bound or
        affected;

       

      (d) the
        execution, delivery and performance by it of the Transaction Documents and
        any
        of the transactions contemplated thereby do not require any consent, approval,
        order, or 

      authorisation
        of, or registration with, or the giving of prior notice to, any Governmental
        Entity having jurisdiction with respect to the execution, delivery and
        performance by it of the Transaction Documents or the validity and
        enforceability thereof or the satisfaction of all monetary and other obligations
        thereunder;

       

      (e) it
        is
        subject to private commercial law and suit under the laws of its jurisdiction
        of
        incorporation, it is not entitled to sovereign immunity under the laws of
        its
        jurisdiction of incorporation, and neither it nor its properties or assets
        have
        any right of immunity from suit or execution on the grounds of sovereignty
        in
        its jurisdiction of incorporation;

       

      (f) no
        provision of the Transaction Documents is prohibited, unlawful or unenforceable
        under the laws of its jurisdiction of incorporation except as enforcement
        may be
        limited by applicable bankruptcy, insolvency, fraudulent conveyance,
        reorganisation, moratorium or other similar laws affecting creditors’ rights
        generally, or by equitable principles (regardless of whether enforcement
        is
        sought in a proceeding in equity or at law);

       

      (g) there
        is
        no investigation by any governmental agency or any action, suit, proceeding,
        or
        claim pending or, to its knowledge, threatened against it with respect to
        the
        Aircraft or any of the Transaction Documents which, if adversely determined,
        would be likely to have a material adverse effect on its ability to comply
        with
        its obligations under any of the Transaction Documents, and it knows of no
        basis
        or ground for any such investigation, action, suit, proceeding or
        claim;

       

      (h) there
        is
        no outstanding order, lien, levy, distraint, writ, injunction or decree of
        any
        court, government or governmental agency against or affecting it directly
        relating to the Aircraft or any of the Transaction Documents which is likely
        to
        have a material adverse effect on its ability to perform its obligations
        under
        any of the Transaction Documents; and

       

      (i) at
        Delivery, the Seller shall be the sole legal and beneficial owner of the
        Aircraft and shall have good and marketable title to the Aircraft free and
        clear
        of any Security Interests whatsoever except for Permitted Liens, which term,
        "Permitted Liens" shall not, in this context, include Lessor Liens; provided,
        however, Seller shall have no responsibility for and does not warrant that
        the
        Aircraft is free of Lessor Liens created by Purchaser. 

       

      7.2 As
        regards any of the Transaction Documents which have not been executed and
        delivered on the date of this Agreement, the representations and warranties
        set
        out in Clause 7.1 shall apply with respect thereto once they have been executed
        and delivered.

      

      8. Representations
        and Warranties of Purchaser 

       

      8.1 The
        Purchaser represents and warrants, all such representations and warranties
        being
        continuing, to the Seller, in each case in relation to itself only and in
        relation to the Transaction Documents to which it is a party only,
        that:

       

      (a) Purchaser
        is a corporation duly organised and legally existing under the laws of Delaware,
        United States of America and has the power and authority to carry on its
        business as presently conducted and to perform its obligations under and
        execute
        and deliver each of the Transaction Documents and each of the Transaction
        Documents has been duly authorised by all necessary corporate action on its
        part, and do not require any approval, direct or indirect, of its shareholders
        or any approval or consent of any trustee or holder or holders of any of
        its
        indebtedness (or if such approval is required, such approval has been
        obtained);

       

      (b) each
        of
        the Transaction Documents has been duly entered into and delivered by it
        and
        upon due authorisation, execution and delivery by the other parties thereto
        will
        constitute its legal, valid and binding obligation enforceable against it
        in
        accordance with its terms except as enforcement may be limited by applicable
        bankruptcy, insolvency, fraudulent conveyance, reorganisation, moratorium
        or
        other similar laws affecting creditors’ rights generally, or by equitable
        principles (regardless of whether enforcement is sought in a proceeding in
        equity or at law);

       

      (c) neither
        the execution and delivery of the Transaction Documents nor the consummation
        of
        the transactions as contemplated thereby, nor compliance by it with any of
        the
        terms and provisions thereof will contravene any law applicable to it or
        any
        order, writ, injunction or decree of any court or governmental agency or
        instrumentality binding on it or result in any breach of, or constitute a
        default under any indenture, mortgage, chattel mortgage, deed of trust,
        conditional sales contract, bank loan or credit agreement, corporate charter
        or
        bylaws or other agreement, instrument or other undertaking to which it is
        a
        party or by which it or its properties or assets may be bound or
        affected;

       

      (d) the
        execution, delivery and performance by it of the Transaction Documents and
        any
        of the transactions contemplated thereby do not require any consent, approval,
        order or authorisation of, or registration with, or the giving of prior notice
        to any Governmental Entity having jurisdiction with respect to the execution,
        delivery and performance by it of the Transaction Documents or the validity
        and
        enforceability thereof or the satisfaction of all monetary and other obligations
        thereunder;

       

      (e) it
        is
        subject to private commercial law and suit under the laws of the jurisdiction
        of
        its incorporation, it is not entitled to sovereign immunity under the laws
        of
        the jurisdiction of its incorporation and neither it nor its properties or
        assets have the right of immunity from suit or execution on the grounds of
        sovereignty in the jurisdiction of its incorporation;

       

      (f) no
        provision of the Transaction Documents is prohibited, unlawful or unenforceable
        under the laws of the jurisdiction of its incorporation except as enforcement
        may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
        reorganisation, moratorium or other similar laws affecting creditors’ rights
        generally, or by equitable principles (regardless of whether enforcement
        is
        sought in a proceeding in equity or at law);

       

      (g) there
        is
        no investigation by any governmental agency or any action, suit, proceeding,
        or
        claim pending or, to its knowledge, threatened against it with respect to
        the
        Aircraft or any of the Transaction Documents which, if adversely determined,
        would be likely to have a material adverse effect on its ability to comply
        with
        its obligations under any of the Transaction Documents, and it knows of no
        basis
        or ground for any such investigation, action, suit, proceeding or
        claim;

       

      (h) there
        is
        no outstanding order, writ, injunction or decree of any court, government
        or
        governmental agency against or affecting it directly relating to the Aircraft
        or
        any of the Transaction Documents which is likely to have a material adverse
        effect on its ability to perform its obligations under any of the Transaction
        Documents; and

       

      (i) Purchaser
        has a net worth of at least $5,000,000.-.

       

      8.2 As
        regards any of the Transaction Documents which have not been executed and
        delivered on the date of this Agreement, the representations and warranties
        set
        out in Clause 8.1 shall apply with respect thereto once they have been executed
        and delivered.

      

      9. Taxes

      The
        Delivery Location shall be at
        a
        location to be mutually agreed upon by Purchaser and Seller having
        due regard to any tax implications to which such location may give rise in
        connection with the transactions contemplated by this Agreement, it being
        the
        intention that neither Purchaser nor Seller should suffer any sales, VAT
        or
        similar taxes in relation to the sale and purchase of the Aircraft.

      

      

      10. Warranties
        and Disclaimers

       

      10.1 THE
        AIRCRAFT WILL BE DELIVERED IN "AS
        IS WHERE IS WITH ALL FAULTS"
        CONDITION. THE SELLER MAKES NO WARRANTIES, GUARANTEES OR REPRESENTATIONS
        (EXCEPT
        AS STATED IN CLAUSE 7 OF THIS AGREEMENT AND THE BILL OF SALE, WHICH EXCEPTION
        APPLIES TO THE ENTIRETY HEREOF) NOR UNDERTAKES ANY OBLIGATION OR LIABILITY,
        EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, IN EACH CASE WITH RESPECT
        TO
        THE AIRCRAFT INCLUDING BUT NOT LIMITED TO (1) ANY IMPLIED WARRANTY (A) AS
        TO THE
        DESCRIPTION, AIRWORTHINESS, MERCHANTABILITY, FITNESS FOR ANY PURPOSE, VALUE,
        CONDITION, DESIGN, USE OR OPERATION OF THE AIRCRAFT OR (B) ARISING FROM ANY
        PART
        PERFORMANCE, COURSE OF DEALING, USAGE OR TRADE OR OTHERWISE, (2) ANY SUCH
        OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, AND (3) ANY SUCH
        OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR DAMAGE TO THE
        AIRCRAFT, (A) FOR ANY LIABILITY OF ANY LESSEE OR ANY LESSOR TO ANY THIRD
        PARTY,
        (B) FOR ANY LIABILITY OF THE PURCHASER TO ANY THIRD PARTY, OR (C) FOR ANY
        OTHER
        DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES; AND ALL SUCH WARRANTIES,
        GUARANTEES, REPRESENTATIONS, OBLIGATIONS, LIABILITIES, RIGHTS, CLAIMS OR
        REMEDIES, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, ARE EXPRESSLY EXCLUDED.
        DELIVERY BY THE PURCHASER TO THE SELLER OF THE COUNTERSIGNED BILL OF SALE
        SHALL
        CONSTITUTE CONFIRMATION BY THE PURCHASER THAT THE AIRCRAFT IS IN EVERY WAY
        SATISFACTORY TO THE PURCHASER. EXCEPT
        AS EXPRESSLY PROVIDED IN THE TRANSACTION DOCUMENTS, NEITHER THE SELLER NOR
        THE
        PURCHASER SHALL HAVE ANY LIABILITY TO EACH OTHER FOR ANY OBLIGATIONS OR
        LIABILITIES OF THE LESSEE OR ANY OTHER THIRD PARTY.

       

      
        	
                10.2

              	
                Seller
                  and Purchaser acknowledge and agree that Seller has conditionally
                  assigned
                  to Lessee under the Lease all effective warranties from manufacturers,
                  service providers or suppliers and that Purchaser shall be entitled
                  to the
                  rights of the "Lessor" under the Novated
                  Lease.

              

      

       

      

      11. Indemnification

       

      11.1 The
        Purchaser agrees to indemnify, reimburse and hold harmless each of the Seller
        Indemnitees from and against any and all claims, including without limitation
        claims made by Lessee under Clause 7.3 of the Lease proceedings, losses,
        liabilities, suits, judgments, penalties or fines and any costs and expenses
        in
        connection therewith, including reasonable attorneys’ fees and expenses (any and
        all of which are hereafter referred to as "Claims")
        imposed on, incurred by or asserted against a Seller Indemnitee to the extent
        arising out of the possession, delivery, performance, management, ownership,
        registration, control, maintenance, condition, service, repair, overhaul,
        leasing, use, operation or return of the Aircraft (collectively, the
        "Use"
        of the
        Aircraft), subsequent to Delivery; provided, however, that the Purchaser
        shall
        be subrogated to all rights and remedies which such Seller Indemnitee may
        have
        against any third party, including manufacturer(s) of the Aircraft or previous
        owner of the Aircraft or part thereof (other than such Seller Indemnitee)
        or any
        vendor, maintenance or modification facility which has done any work on the
        Aircraft or part thereof.

       

      11.2 The
        Seller agrees to indemnify, reimburse and hold harmless each of the Purchaser
        Indemnitees from and against any and all Claims imposed on, incurred by or
        asserted against such Purchaser Indemnitee to the extent arising out of the
        Use
        of the Aircraft prior to Delivery, including, without limitation, (i) any
        lien,
        levy, distraint or encumbrance (including Eurocontrol charges) on, over or
        relating to the Aircraft which were created, or existed prior to delivery
        of the
        Aircraft to Lessee under the Lease and with respect to which Lessee makes
        any
        claim against Lessor pursuant to Clause 7.3 of the Lease, and (ii) any Claim
        made by Lessee against Purchaser arising out of Lessee’s rights under Clause 7.3
        of the Lease.

       

      11.3 Without
        prejudice to the Purchaser’s liability under this Clause 11, the Purchaser
        hereby agrees to indemnify, reimburse and hold the Seller Indemnitees harmless
        from any Claims in any manner imposed upon, incurred by or asserted against
        such
        Seller Indemnitee to the extent arising out of facts or circumstances subsequent
        to Delivery and made on the grounds that any design, article or material
        in the
        Aircraft or any part thereof or the manufacture, operation or use thereof
        constitutes an infringement of patent, copyright, design, trademark or other
        proprietary right or any other right whatsoever, save where such losses shall
        have resulted from the actions of such Seller Indemnitee.

       

      11.4 The
        Purchaser shall have the right to assume and conduct promptly and diligently,
        at
        its sole cost and expense, the entire defence of any Seller Indemnitee against
        any such Claim as is referred to in Clauses 11.1 or 11.3 without prejudice
        to
        the provisions of Clauses 11.1 or 11.3 and subject to the Seller Indemnitee
        being indemnified and secured for the costs of any such action to its reasonable
        satisfaction.  The
        Seller shall have the right to assume and conduct promptly and diligently,
        at
        its sole cost and expense, the entire defence of any Purchaser Indemnitee
        against any such Claim as is referred to in Clauses 11.2 without prejudice
        to
        the provisions of Clauses 11.2 and 11.5 and subject to such Purchaser Indemnitee
        being indemnified and secured for the costs of any such action to its reasonable
        satisfaction.

       

      11.5 Without
        prejudice to the Seller's liability under this Clause 11, the Seller hereby
        agrees to indemnify, reimburse and hold the Purchaser Indemnitees harmless
        from
        any Claims in any manner imposed upon, incurred by or asserted against such
        Purchaser Indemnitee to the extent arising out of facts or circumstances
        prior
        to Delivery and made on the grounds that any design, article or material
        in the
        Aircraft or any part thereof or the manufacture, operation or use thereof
        constitutes an infringement of patent, copyright, design, trademark or other
        proprietary right or any other right whatsoever, save where such losses shall
        have resulted from the actions of the Purchaser.

       

      11.6 The
        indemnities given by the Purchaser in this Clause 11 shall not extend to
        Claims
        relating to any Seller Indemnitee:

       

      (a) arising
        solely as a result of (or solely attributable to) the wilful misconduct,
        recklessness or gross negligence of any of such Seller Indemnitee;

       

      (b) arising
        out of (or attributable to) a breach by the Seller (or Seller Indemnitee
        which
        is a party) of any of its material obligations (including its representations
        and warranties not being true and correct in any material respect) under
        the
        Transaction Documents;

       

      (c) arising
        out of or attributable to an act, event, circumstance or omission that existed
        or occurred prior to Delivery; 

       

      (d) arising
        out of (or attributable to) Taxes or the imposition of Taxes; or,

       

      (e) arising
        out of (or attributable to) such Seller Indemnitee’s liability as a
        manufacturer, service provider, or vendor (of maintenance or repair services)
        of
        or to the Aircraft or any part thereof.

       

      11.7 The
        indemnities given by the Seller in this Clause 11 shall not extend to Claims
        relating to any Purchaser Indemnitee:

       

      (a) arising
        solely as a result of (or solely attributable to) the wilful misconduct,
        recklessness or gross negligence of any Purchaser Indemnitee;

       

      (b) arising
        out of (or attributable to) a breach by the Purchaser (or Purchaser Indemnitee
        which is a party) of any of its material obligations (including its
        representations and warranties not being true and correct in any material
        respect) under the Transaction Documents;

       

      (c) arising
        out of or attributable to an act, event, circumstance or omission that exists
        or
        occurs subsequent to Delivery; or

       

      (d) arising
        out of (or attributable to) Taxes or the imposition of Taxes.

       

      
        	
                 

                11.8
                  

              	
                With
                  respect to the obligation of Purchaser (as lessor under the Novated
                  Lease)
                  under Clause 11.3 of the Novated Lease, Seller hereby makes the
                  following
                  covenant and assurance to Purchaser: Seller shall procure that
                  each
                  Previous Party (as defined in the Novated Lease) which is an "Indemnitee"
                  under the Lease uses its reasonable endeavours to mitigate any
                  Claim (as
                  defined in the Lease) for which such Indemnitee may claim against
                  Lessee
                  pursuant to Clause 11.1 (of the Lease) or any other applicable
                  provision
                  of the Lease.

              

      

       

      
        	
                11.9

              	
                The
                  Seller agrees to indemnify, defend and hold harmless the Purchaser
                  and its
                  successors and assigns from any and all liabilities, damages, losses,
                  expenses, demands, claims, suits or judgements by any third party
                  or
                  parties, including attorney fees, costs and expenses, which arise
                  out of
                  any claims or demands contrary to the warranties of Seller set
                  forth in
                  7.1 (i) hereunder.

              

      

      

      

      12. Insurance

       

      12.1 The
        Purchaser undertakes and agrees with the Seller that until the earlier of
        (i)
        the second anniversary of the Delivery Date and (ii) completion of the next
        scheduled Major Check (as defined in the Lease) to occur after the Delivery
        Date, the Purchaser will (i) procure that Lessee, so long as the Lease remains
        in effect, maintains liability insurance policies in respect of the Aircraft
        with the limit of coverage of such policy to be at least US$500,000,000.-
        on
        which the Seller Indemnitees shall be named as additional insureds, (ii)
        with
        respect to any subsequent lessee of the Aircraft during such period, procure
        that such lessee maintains liability insurance policies in respect of the
        Aircraft on which the Seller Indemnitees shall be named as additional insureds
        with the limit of coverage of such policy to be equal to that on which
        Purchaser, as lessor, is named additional insured, but in no event shall
        any
        such policy have limits less than US$350,000,000.-, and (iii) with respect
        to
        any off-lease period during which the Aircraft is not used in flight operation,
        for any reason whatsoever, during such period, maintain liability insurance
        policies in respect of the Aircraft on which the Seller Indemnitees shall
        be
        named additional insureds, with the limit of coverage and having such coverages
        as Purchaser maintains with respect to its other off-lease aircraft in its
        fleet, with such limit of coverage of such policy being no less than
        US$100,000,000.-. In the event the Aircraft is used in flight operations
        in any
        off-lease period the requirement for liability insurances with minimum coverage
        of US$ 350,000,000.- shall apply.

       

      12.2 The
        Purchaser further undertakes and agrees with the Seller that the Purchaser
        shall, when requested by the Seller, produce to the Seller a certificate
        or
        other evidence as the Seller may reasonably require to show that the Purchaser
        has complied with the obligations set forth in Clause 12.1 above and the
        certificate shall contain provisions customary in the insurance market to
        protect the interests of the Seller Indemnitees and a severability of interest
        provision, all in terms reasonably satisfactory to the Seller. The Seller
        acknowledges that any certificate including the provisions of AVN67B (or
        its
        equivalent) will be satisfactory to the Seller, for so long as AVN67B (or
        its
        equivalent) represents, at the relevant time in the international insurance
        markets, best aviation insurance market practice.

      

      13. Assignment/Transfer

      No
        party
        shall assign, transfer or otherwise convey this Agreement, and all or any
        part
        of its rights or obligations hereunder to any person without the prior written
        consent of the other party hereto.

      

      

      14. Confidentiality

      The
        terms
        and conditions of this Agreement are to be kept confidential by the Seller
        and
        the Purchaser and each party acknowledges that this Agreement contains
        commercially sensitive information (collectively, the "Confidential
        Information") and agrees that such Confidential Information will not be
        disclosed by it without the prior written permission of each other party
        except
        to: (i) any permitted assignee or transferee of Purchaser or Seller, provided
        such assignee agrees to be bound by the terms of this or other substantially
        similar confidentiality clause, (ii) the extent necessary in connection with
        the
        enforcement of Seller’s or Purchaser’s rights or obligations hereunder, (iii)
        the extent disclosure may be required by applicable law or legal process;
        (iv)
        the potential financiers of Purchaser and Seller’s existing financiers, provided
        such potential or existing financiers agree to be bound by the terms of this
        or
        substantially similar confidentiality clause and (v) each party’s respective
        boards of directors, employees, auditors, management companies and legal
        or
        technical advisors, in which case, the disclosing party shall cause such
        person
        to agree to be bound by the terms of this or substantially similar
        confidentiality clause. 

      

      

      15. Miscellaneous

       

      15.1 This
        Agreement constitutes the entire agreement between the parties and supersedes
        all previous statements, representations and agreements between the parties
        relating to the subject matter of this Agreement.

       

      15.2 No
        delay
        or omission by any party in exercising any right, power or remedy under this
        Agreement shall impair such right, power or remedy or be construed as a waiver
        thereof, nor shall any single or partial exercise of any such right, power
        or
        remedy preclude any further exercise thereof or the exercise of any other
        right,
        power or remedy. The rights, powers and remedies herein provided are cumulative
        and not exclusive of any rights, powers and remedies provided by
        Law.

       

      15.3 No
        amendment to this Agreement, including but not limited to this Clause 15.3,
        shall be effective unless in writing and duly signed by all parties
        hereto.

       

      15.4 If
        at any
        time any one or more of the provisions in this Agreement is or becomes invalid,
        illegal or unenforceable in any respect under any Law, the validity, legality
        and enforceability of the remaining provisions of this Agreement shall not
        be in
        any way affected or impaired thereby.

       

      15.5 Each
        party shall pay its own legal and professional costs and expenses in respect
        of
        the negotiation, documentation and closing of the transactions contemplated
        by
        this Agreement, including, inter alia, the Purchaser paying its own costs
        and
        expenses associated with the inspection of the Aircraft. All costs and expenses
        of the Lessee relating to the novation of the Lease shall be borne by Seller.
        Costs in connection with the registration of the Purchaser’s and its financier’s
        title in and to the Aircraft and the Novated Lease shall be for the account
        of
        the Purchaser.

       

      15.6 Each
        party undertakes to reasonably cooperate with the other to execute and deliver
        any and all such other documents as may be reasonably requested by the other
        party in order 

      to
        effectuate the intent, purposes and terms of this Agreement.

      

      16. Notices

       

      16.1 Any
        notice or other communication to be given under or for the purposes of this
        Agreement shall be in writing and shall be treated as properly served or
        given
        if hand delivered or sent by international courier, registered post or legible
        facsimile to the relevant person at the following address or facsimile number
        (or such other address or facsimile number as that person may by notice
        designate in writing from time to time to the person giving the
        notice);

       

                          Seller:         Pembroke
        Capital Aircraft (Shannon) Limited

      Address:     Shannon
        Airport House

      Shannon,
        Co. Clare

      Ireland

      Telephone:     +353
        (61)
        701-600

      Facsimile
        No:     +353
        (61)
        474912

      Attention:     Mr.
        John
        McKechnie

       

                  Purchaser:     AeroCentury
        Corp.

      Address:     1440
        Chapin Ave, Suite 310 

      Burlingame,
        California 94010, USA 

      Telephone:     +1
        650
        340 1880

      Facsimile
        No:     +1
        650 696
        3929

      Attention:     Marc
        J.
        Anderson

      

      16.2 Any
        notice or other communication shall be deemed to have been received by the
        recipient:

       

      (a) in
        the
        case of a letter which is hand delivered, when actually delivered and, in
        the
        case of a letter which is sent by registered post, on the third day after
        posting (or on actual receipt, if earlier); or

       

      (b) in
        the
        case of transmission by legible facsimile, at the time of
        transmission.

       

      16.3 Each
        person making a communication hereunder by facsimile shall promptly confirm
        by
        telephone to the person to whom such communication was addressed each
        communication made by it by facsimile pursuant hereto but the absence of
        such
        confirmation shall not affect the validity of any such
        communication.

       

      16.4 All
        communications and documents delivered pursuant to or otherwise relating
        to this
        Agreement shall either be in English or accompanied by a certified English
        translation prepared by a competent translator.

      

      17. Governing
        Law and Jurisdiction

       

      17.1 This
        Agreement is governed by and shall be construed in accordance with the laws
        of
        the Federal Republic of Germany.

       

      17.2 The
        parties irrevocably agree that the courts of Frankfurt am Main, Federal Republic
        of Germany shall have exclusive jurisdiction to settle any disputes which
        may
        arise out of or in connection with this Agreement and that accordingly any
        suit,
        action or proceedings arising out of or in connection with this Agreement
        ("Proceedings")
        may be
        brought in such courts.

       

      17.3 The
        parties irrevocably waive any objection which they may have now or hereafter
        to
        the laying of any Proceedings in any such court as is referred to in Clause
        17.2
        and any claim that any Proceedings have been brought in an inconvenient forum
        and further irrevocably agree that a judgement in any Proceedings brought
        in any
        court referred to in Clause 17.2 shall be conclusive and binding upon them
        and
        may be enforced in the courts of any other jurisdiction.

       

      17.4 Each
        of
        the parties hereby consents generally in respect of any Proceedings arising
        out
        of or in connection with this Agreement to the giving of any relief or the
        issue
        of any process in connection with such Proceedings including, without
        limitation, the making, enforcement or execution against any property whatsoever
        (irrespective of its use or intended use) of any order or judgment which
        may be
        made or given in such Proceedings.

       

      17.5 In
        respect of any Proceedings between the parties arising out of or in connection
        with this Agreement, the Purchaser hereby appoints: 

      Faegre
        & Benson LLP

      Main
        Tower

      Neue
        Mainzer Strasse 52-58

      60311
        Frankfurt am Main

      Germany
        

      Attention:
        Executive Partner

       

      to
        receive notification as process agent on Purchaser’s behalf in Germany in
        connection with any such Proceedings. In the event such process agent ceases
        to
        so act, the Purchaser will promptly appoint another person as process agent
        and
        inform Seller and Seller's process agent accordingly.

       

      17.6 In
        respect of any Proceedings between the parties arising out of or in connection
        with this Agreement, the Seller hereby appoints:

      Schierk
        & Bechtloff 

       

      NeumŸhlen
        23, 

       

      22763
        Hamburg

       

      Germany
        

       

      to
        receive notification as process agent on Seller’s behalf in Germany in
        connection with any such Proceedings. In the event such process agent ceases
        to
        so act, the Seller will promptly appoint another person as process agent
        and
        inform Purchaser and Purchaser's process agent accordingly.

       

      
        	
                17.7

              	
                The
                  parties hereto agree that a copy of any statement of claim ("Klageschrift")
                  sent to the courts of Frankfurt am Main, Germany, shall be sent,
                  on the
                  same day, to such other party named as defendant in that statement
                  of
                  claim at the address for notification set forth in Clause 16.1
                  hereof.

              

      

       

      

       

      IN
        WITNESS
        whereof
        the parties hereto have entered into this Agreement the day and year first
        above
        mentioned.

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      Schedule
        1

      Description
        of Aircraft

      

      

          Manufacturer:         FOKKER

      

      
        	
                    Aircraft
                  type:

              	
                One
                  FOKKER model F.28 MK 0100 Aircraft (also described: in the FAA
                  records as
                  - F.28 MK 0100, in the International Registry drop down menu as
                  - FOKKER
                  model F100, and in the International Registry by free text entry
                  as -
                  model F28MK0100 and in the Type Certificate Data Sheet as - FOKKER
                  model
                  F.28 Mark 0100)

              

      

      

          Aircraft
        serial number:     11310

      

          Engine
        manufacturer:     ROLLS
        ROYCE

      

      
        	
                    Engine
                  type:

              	
                Rolls
                  Royce Tay Mark 650-15 (also identified on the International Registry
                  drop
                  down menu as ROLLS ROYCE model
                  TAY650)

              

      

      

          Engine
        serial
        numbers:     17346
        and
        17269

      

          Landing
        Gear
        manufacturer:
        Messier-Dowty

      

      Nose:
        Part Number 201071001

      Serial
        Number: XC93037

       

      LH
        Main:
        Part Number 201072013 

      Serial
        Number: XC92954

      

      RH
        Main:
        Part Number 201072014

      Serial
        Number: DLG-0211     

      

          APU
        manufacturer:  
        Honeywell

                      Model:
        GTCP
        36-150RR

                      Serial
        Number: P-253C

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Schedule
        2

      

      Bill
        of Sale

      

      Pembroke
        Capital Aircraft (Shannon) Limited, a company incorporated in Ireland, having
        its registered office at Shannon Airport House, Shannon, Co. Clare, Ireland
        (the
        "Seller") is the owner of the full legal and beneficial title to the following
        described aircraft and engines described below (hereinafter, collectively,
        referred to as the "Aircraft"):

      

      (1)
        one
        FOKKER model F.28 MK 0100 Aircraft (also described: in the FAA records as
        - F.28
        MK 0100, in the International Registry drop down menu as - FOKKER model F100,
        and in the International Registry by free text entry as - model F28MK0100
        and in
        the Type Certificate Data Sheet as - FOKKER model F.28 Mark 0100) airframe
        bearing manufacturer’s serial number 11310;

      

      (2) two
        Rolls
        Royce Tay Mark 650-15 (also identified on the International Registry
        drop down
        menu
        as ROLLS ROYCE model TAY650) engines bearing the following manufacturer’s serial
        numbers: 17346 and 17269;

       

      (3) 
        all
        appliances, parts, accessories, appurtenances, instruments, components and
        other
        items of equipment which are installed or incorporated in or on the aircraft
        and
        engines described in (1) and (2) above; and

      

      (4) the
        Aircraft Documents. 

      

      For
        and
        in consideration of the payment of the Purchase Price under the Aircraft
        Sale
        Agreement dated ___ June 2007 (the "Sale Agreement") between the Seller and
        AeroCentury Corp., a United States, State of Delaware corporation, having
        its
        principal place of business at 1440 Chapin Ave. Suite 310, Burlingame,
        California 94010, USA (the "Purchaser"), the Seller hereby this ___________
        day
        of ___________ 2007 grants, conveys, transfers, assigns, bargains and sells,
        delivers and sets over, all of the Seller's right, title and interest in
        and to
        the Aircraft, unto the Purchaser.

      

      This
        Bill
        of Sale is first executed and delivered to the Purchaser by the Seller and
        then
        countersigned and delivered to the Seller by the Purchaser pursuant to the
        terms
        of the Sale Agreement and capitalized terms not otherwise defined herein
        shall
        be as defined in the Sale Agreement.

      

      The
        Seller hereby warrants to the Purchaser, its successors and assigns, that
        there
        is hereby conveyed to the Purchaser on
        the date hereof,
        all
        legal and beneficial title, and good and marketable title to the Aircraft
        free
        and clear of any Security Interests whatsoever except for Permitted Liens
        but
        including, free and clear of any Lessor Liens; provided, however, Seller
        shall
        have no responsibility for and does not warrant that the Aircraft is free
        of
        Lessor Liens created by Purchaser. The Seller agrees with the Purchaser and
        its
        successors and assigns that Seller will warrant and defend such title forever
        against all claims and demands whatsoever.

      

      Seller
        herewith transfers the title to the Aircraft to the Purchaser and Purchaser
        accepts such transfer of title.

      

      IN
        WITNESS WHEREOF, the Seller and the Purchaser have caused this instrument
        to be
        executed by their duly authorized officers this _______ day of _________
        2007.

      

      

      

      

      

      SIGNED
        and DELIVERED

      on
        behalf
        of

      Pembroke
        Capital Aircraft (Shannon) Limited

      

      By: ____________________________

      

      Name: ____________________________

      

      Its: ____________________________

      

      

      Accepted
        and Agreed:

      

      On
        behalf
        of

      AeroCentury
        Corp.

      

      By: ____________________________

      

      Name: ____________________________

      

      Its: ____________________________

      

      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      

      

      SIGNATURE
        PAGE

      AIRCRAFT
        SALE AGREEMENT

      MSN
        11310

      

      

      SIGNED
        for and
        on behalf of

      Pembroke
        Capital Aircraft (Shannon) Limited

      

      By: ____________________________

      

      Name: ____________________________

      

      Its: ____________________________

      

      

      SIGNED
        for and
        on behalf of

      AeroCentury
        Corp.

      

      By: ____________________________

      

      Name: ____________________________

      

      Its: ____________________________Exhibit 10.19  

	VIEWSONIC EUROPE LIMITED

Riverside House

7th Floor

2a Southwark Bridge Road

London

SE1 9HA
	Fax No.:	 	0207 921 2201
	Attention:	 	European Legal Counsel

22
June 2007 

Dear
Sirs, 

Re Viewsonic facilities with Burdale  

We refer to the facility agreement dated 24 June 2007 between Viewsonic Europe Limited (the Company) and certain
affiliates of the Company in relation to $20,000,000 credit facilities provided by Burdale Financial Limited (Burdale) (the  Facility Agreement). A term used in this letter and not otherwise defined has the meaning set out in the Facility Agreement. 

1.     Final Repayment Date  

	1.1
	The
Final Repayment Date is due to occur on 24 June 2007.

	1.2
	The
Company has asked Burdale to extend the Final Repayment Date to 24 August 2007 (the Extended Final Repayment Date).

	1.3
	Burdale
is prepared to change the Final Repayment Date to the Extended Final Repayment Date on the following conditions:

	(a)
	the
Company pays the fee specified in paragraph 2.1;

	(b)
	the
Company represents and warrants that no Default or Event of Default exists as at the date of this letter; and

	(c)
	each
Guarantor confirms that its guarantee under the Facility Agreement is not affected by, and continues in full force and effect notwithstanding, the extension of the facilities to
the Extended Final Repayment Date. 

2.     Agreement to conditions  

	2.1
	A
fee of £65,000 is payable on the date of this letter.

	2.2
	If
the Company countersigns this letter in the space indicated to accept the terms of this letter then the Company will be deemed to make the representation and warranty set out in
paragraph 1.3(b).

	2.3
	Each
Guarantor confirms by signing this letter in the space indicated that its guarantee under the Facility Agreement is not affected by, and continues in full force and effect
notwithstanding, the extension of the facilities to the Extended Final Repayment Date. 

3.     General  

	3.1
	This
letter is a Finance Document.

	3.2
	This
letter shall be governed by, and construed in accordance with, English law. 

Yours
faithfully 

/s/  ROBIN ALDRIDGE          /s/  BRIAN GITLIN      

Burdale
Financial Limited

 

	THE COMPANY	 	 	 
	

Signed for and on behalf of	

)	
 	

/s/  MATTHEW BAGLEY      
	VIEWSONIC EUROPE LIMITED	)	 	

	Address:	Riverside House,	)	 	 
	 	7th Floor,	)	 	 
	 	2a Southwark Bridge Road,	)	 	 
	 	London	)	 	 
	 	SE1 9HA	)	 	 
	Fax No.:	0207 921 2201	)	 	 
	Attention:	European Legal Counsel	)	 	

	
THE ORIGINAL GUARANTORS	

 	
 	

 
	

Signed for and on behalf of	

)	
 	

/s/  JAN JENSEN      
	VIEWSONIC SARL	)	 	

	Address:	Riverside House,	)	 	 
	 	7th Floor,	)	 	 
	 	2a Southwark Bridge Road	)	 	 
	 	London,	)	 	 
	 	SE1 9HA	)	 	 
	Fax No.:	0207 921 2201	)	 	 
	Attention:	European Legal Counsel	)	 	

	

Signed for and on behalf of	

)	
 	

/s/  JAN JENSEN      
	VIEWSONIC TECHNOLOGY GMBH	)	 	

	Address:	Riverside House,	)	 	 
	 	7th Floor,	)	 	 
	 	2a Southwark Bridge Road	)	 	 
	 	London,	)	 	 
	 	SE1 9HA	)	 	 
	Fax No.:	0207 921 2201	)	 	 
	Attention:	European Legal Counsel	)	 	

	
THE LENDER	

 	
 	

 
	

Signed for and on behalf of	

)	
 	

/s/  ROBIN ALDRIDGE          /s/  BRIAN GITLIN      
	BURDALE FINANCIAL LIMITED	)	 	

	Address:	53 Queen Anne Street, London WIG 9HP	)	 	 
	Fax No:	020 7935 5445	)	 	

	Attention:	Company Secretary

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