Document:

Ex1036AmendedandRestatedLeaseAgreement

Exhibit 10.36

AMENDED AND RESTATED LEASE AGREEMENT
(Wilmington Air Park)

THIS AMENDED AND RESTATED LEASE AGREEMENT (this “Lease Agreement”) is made and entered into this 27th day of December, 2012 (the “Execution Date”), to be effective as of June 2, 2010 (the “Effective Date”), by and between CLINTON COUNTY PORT AUTHORITY, a body corporate and politic and a port authority duly organized and validly existing under the laws of the State of Ohio with an address of 1113 Airport Road, Wilmington, OH 45177 (“Landlord”), and AIR TRANSPORT SERVICES GROUP, INC., a Delaware corporation  with an address of 145 Hunter Drive, Wilmington, OH 45177 (“Tenant”).

WITNESSETH

WHEREAS, Landlord is the owner of the certain real property located in Clinton County, Ohio and generally known as Wilmington Air Park, as more particularly described and detailed in Exhibit A attached hereto and fully incorporated herein (the “Air Park”), together with title to and possession of all improvements therein and thereon; and
WHEREAS, as of the Effective Date, Landlord and Tenant entered into that certain Lease Agreement (Wilmington Air Park) relative to the Premises (as defined herein), which are a part of the Air Park (the “Original Lease”), which Original Lease was amended and modified pursuant to the terms and conditions of the certain First Amendment to Lease Agreement (Wilmington Air Park) by and between Landlord and Tenant and dated April 20, 2011 (the “First Lease Amendment”); and
WHEREAS, ABX Air, Inc. (“ABX”), an Affiliate (as defined herein) of Tenant, previously occupied certain buildings within the Air Park (the “Buildings”) pursuant to that certain Wilmington Air Park Sublease between Airborne, Inc. and ABX, dated August 15, 2003 (“the ABX Sublease”); and
WHEREAS, contemporaneously with the execution of the Original Lease, the ABX Sublease was terminated; and
WHEREAS, contemporaneously with the execution of the Original Lease, Landlord and ABX entered into that certain Operations and Management Services Agreement (Wilmington Air Park) dated of even date with the Effective Date (the “Operations Agreement”) with respect to the performance by ABX of certain operation, management and maintenance services on behalf of Landlord for the benefit of the Air Park; provided that, pursuant to the terms and conditions of that certain First Amendment to Operations and Management Services Agreement (Wilmington Air Park) dated as of April 20, 2011, LGSTX Services, Inc., a wholly-owned subsidiary of Tenant (“LGSTX”), has replaced ABX as the named party under, and has assumed the duties and obligations of ABX under, the Operations Agreement; and

WHEREAS, in connection with certain transactions by and among the Ohio Department of Development, Landlord, Tenant, affiliates of Tenant and other parties, an approximately 100,000 square foot joint use maintenance and paint hanger facility (the “JUMP Facility”) will be developed on a 4.457 acre parcel of real property situated adjacent to the existing aircraft hangers at the Air Park (the “JUMP Site”) and occupied by an affiliate of Tenant under a separate lease agreement relating to the JUMP Site and the JUMP Facility and dated as of December 1, 2012, by and between Landlord and said affiliate of Tenant (the “JUMP Lease”); and
WHEREAS, in connection with the development of the JUMP Facility and the execution and delivery of the JUMP Lease, Landlord and Tenant have agreed to amend, restate and supersede in its entirety the Original Lease, as amended by the First Lease Amendment, by virtue of the execution and delivery of this Lease Agreement;
NOW, THEREFORE, in consideration of the terms, covenants and agreements herein contained, Landlord and Tenant do hereby amend, restate and supersede in its entirety the Original Lease, as amended by the First Lease Amendment, and make the following agreement, intending to be legally bound hereby:

ARTICLE 1
Definition of Certain Terms

1.01.  The term “Affiliate”, in reference to Tenant, means (a) any Person (as defined herein) who directly or indirectly controls, is controlled by, or is under common control with Tenant; (b) any Person owning or controlling, directly or indirectly, 10% or more of the outstanding voting securities of Tenant; and (c) any officer, director, member, manager or partner of Tenant. 

1.02.  [Intentionally Omitted]

1.03.  The term “Fixtures” means all furniture, fixtures, machinery, equipment and trade fixtures which Tenant may own, purchase (conditionally or otherwise) or lease and hereafter cause to be installed, maintained or kept in or otherwise at the Premises for any purpose whatsoever.

1.04.  The term “Lease Year” means the periods determined as follows:  (a) the first Lease Year shall commence on the Effective Date and shall end on the last day of the twelfth (12th) full calendar month next following the Effective Date, and (b) each Lease Year thereafter shall commence immediately following the expiration of the preceding Lease Year and shall end on the anniversary date of the expiration of the preceding Lease Year, except that the final Lease Year shall end on the date this Lease Agreement shall expire or otherwise terminate.

1.05.  [Intentionally Omitted]

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1.06.  The term “Person” means any individual, partnership, limited liability company, corporation, firm, joint venture, or other entity, or any combination thereof.

1.07.  The term “Premises” means the Buildings and/or space within certain of the Buildings comprising, in the aggregate, five hundred eighteen thousand four hundred thirty-four (518,434) square feet of space, more or less, all as identified and illustrated on Exhibit B attached hereto and fully incorporated herein, together with the exclusive right to use two (2) two hundred forty thousand (240,000) gallon above ground aviation fuel tanks and related facilities and certain above ground vehicle fuel skid tanks, all situated at the Air Park in the locations more specifically illustrated in Exhibit C attached hereto and fully incorporated herein (the “Fuel Tanks”); provided that, Tenant’s right to exclusive use of the Fuel Tanks under this Lease Agreement shall continue only for so long as Tenant or an Affiliate of Tenant shall be responsible for the operation and management of the Fuel Tanks and fueling operations at the Air Park pursuant to the Operations Agreement. 

1.08.  [Intentionally Omitted]

1.09.  [Intentionally Omitted]

1.10.  The term “Permitted Encumbrances” means those title encumbrances relating to the Premises as more particularly described on Exhibit F attached hereto and fully incorporated herein.

ARTICLE 2
Creation of Leasehold

2.01.  Demise.  Upon the terms and conditions set forth in this Lease Agreement, Landlord does hereby demise and let unto Tenant, and Tenant does hereby lease and hire from Landlord, the Premises, together with the non-exclusive right to use the Common Use Facilities (as defined herein), but subject to the Reserved Easements (as defined herein) and Permitted Encumbrances (as defined herein).

2.02.  Common Use Facilities.  As an appurtenance to Tenant’s leasehold estate in and use of the Premises, Tenant is hereby granted the non-exclusive right to enter upon or make customary and reasonable use of, including the right to ingress to and egress from, (i) all runways, landing areas, taxiways, aprons, walkways, roadways, runway lights, signals, and other operating aids of the Air Park and all navigation or flight easements now or hereafter granted or reserved for the benefit of Landlord, (ii) all automobile parking fields and facilities within the Air Park (limited to the right of Tenant and its employees, agents, contractors and invitees to park in such fields and facilities on a daily basis and specifically excluding the storage of vehicles in or on said parking fields or facilities), and (iii) such other areas of the Air Park provided and developed by Landlord for common use at the Air Park (collectively, the “Common Use Facilities”); provided that, except as otherwise permitted by Landlord in writing, the Common Use Facilities shall not include the following Air Park facilities: (a) any buildings or other structures situated in or at the Air Park which are not part of the Premises, (b) the so-called 

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“Welcome Center” and any improvements attendant thereto, including parking fields and (c) any portion of the Air Park identified and defined in the Operations Agreement as “Limited Service Areas”.  Tenant’s rights hereunder shall be in common with Landlord and with other persons authorized by Landlord from time to time to use the Common Use Facilities, including members of the general public if Landlord so elects; provided, however, that Landlord shall not use, and shall not authorize any person to use, the Common Use Facilities in any way that unreasonably interferes with the use and enjoyment of the Premises by Tenant for the purposes contemplated by this Lease Agreement.  Tenant’s use of the Common Use Facilities shall be in accordance with all applicable laws and regulations, including, without limitation, all Federal Aviation Administration (“FAA”) and all other applicable governmental regulations governing aviation and air navigation and further in accordance with any reasonable rules and procedures adopted by Landlord from time to time governing the use of the Air Park and the Common Use Facilities.  Landlord reserves the right, in its sole and absolute discretion, to make changes, at any time and from time to time, to the size, shape, location, number and extent of the Common Use Facilities and/or to eliminate portions of the Common Use Facilities, and specifically further reserves the right to designate portions of the Common Use Facilities for the exclusive or non-exclusive use of certain tenants and licensees, so long as such changes, eliminations and/or designations do not unreasonably interfere with the use and enjoyment of the Premises by Tenant for the purposes contemplated by this Lease Agreement.

2.03.  Maintenance of Communications Network.  As an appurtenance to Tenant’s leasehold estate in and use of the Premises, Tenant is hereby granted a non-exclusive easement during the Lease Term to utilize those areas of the Air Park outside the Premises (as more particularly described on Exhibit D, attached hereto and fully incorporated herein) where it currently maintains fiber optic cabling and other equipment that are part of Tenant’s telecommunications network and systems (“Tenant’s Fiber Optics Systems”) for the purposes of monitoring, testing, maintaining, repairing, upgrading, replacing and using such cabling and other equipment.  Landlord and Tenant agree to cooperate in good faith so as not to interfere with or disrupt Tenant’s Fiber Optics Systems and/or the Air Park Fiber Optics Systems (as hereinafter defined), respectively, in connection with the use and occupancy of the Premises and the Air Park, respectively.

2.04.  Reserved Easements.  Landlord does hereby retain and reserve unto itself, and Tenant does hereby grant and convey to Landlord: (a) non-exclusive perpetual easements over, under, across and through the Premises for the purposes of constructing, installing, reconstructing, repairing, replacing, maintaining, testing, upgrading and using (1) underground laterals and lines to be connected to those public utilities and appurtenant works and connections which now or in the future may exist in the public thoroughfares or other portions of the Air Park and (2) fiber optic cabling and other equipment as part of telecommunications networks and systems to be installed by Landlord or other tenants at the Air Park (the “Air Park Fiber Optics Systems”), provided, however, that (i) such easements shall be used in such a manner as will not result in interference with the use and enjoyment of the Premises by Tenant for the purposes contemplated by this Lease Agreement and (ii) if as a result of the use of said easements for said purposes the Premises shall be damaged, then Landlord shall promptly repair the damage and restore the Premises to its pre-existing condition; and (b) a non-exclusive perpetual avigation 

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easement over, across and through the Premises creating in favor of Landlord and its permitees a right of flight for the passage of aircraft in the airspace over the Premises and the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through said airspace or landing at, or taking off from, or operations at, the Air Park (herein collectively called the “Reserved Easements”).

2.05.  “As Is” Possession.  Tenant acknowledges that ABX was in sole possession of the Premises under the ABX Sublease commencing August 15, 2003 and continuing through the Effective Date (the “ABX Prior Possession Period”).  Accordingly, Tenant accepts the Premises in “As Is” condition with all faults and defects.  Tenant acknowledges that Landlord has made no representation or warranty as to the suitability of the Premises for the conduct of Tenant’s business, and Tenant waives any implied warranty that the Premises are suitable for Tenant’s intended purposes.  In no event shall Landlord be liable for any defects in the Premises or for any limitation on its use.  Further, Tenant agrees that Tenant’s obligation to pay Base Rent and other sums hereunder is not dependent upon the condition of the Premises or, except as otherwise expressly provided herein, any performance by Landlord hereunder.

ARTICLE 3
Lease Term

3.01.  Lease Term.  The term “Lease Term” under this Lease Agreement means the Initial Lease Term (as defined herein), plus the Renewal Terms (as defined herein), if any, plus any period during which Tenant may be a tenant-at-sufferance under Section 3.04 of this Lease Agreement, or the shorter period expiring upon the date of earlier termination of this Lease Agreement as provided elsewhere in this Lease Agreement.

3.02.  Initial Lease Term.  The initial term of this Lease Agreement (the “Initial Lease Term”) shall commence on the Effective Date and shall continue for a period of nine (9) years and end on the ninth (9th) anniversary of the Effective Date, unless sooner terminated as provided elsewhere in this Lease Agreement; provided, however, that if the Effective Date is not the first day of the month, the number of days remaining in the month containing the Effective Date shall be added to the Initial Lease Term.

3.03.  Renewal Options.  Landlord hereby grants to Tenant the right and options (collectively, the “Renewal Options”, and each a “Renewal Option”) to extend the Initial Lease Term for five (5) additional periods (collectively, the “Renewal Terms”, and each a “Renewal Term”), as hereinafter described: 
		
	(i)
	the first Renewal Term shall be the period beginning on the day immediately following the expiration of the Initial Lease Term and expiring on the seventh (7th) anniversary of the date of expiration of the Initial Lease Term (the “First Renewal Term”);

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	(ii)
	the second Renewal Term shall be the period beginning on the day immediately following the expiration of the First Renewal Term and expiring on the fifth (5th) anniversary of the date of expiration of the First Renewal Term (the “Second Renewal Term”);

		
	(iii)
	the third Renewal Term shall be the period beginning on the day immediately following the expiration of the Second Renewal Term and expiring on June 1, 2036 (the “Third Renewal Term”);

		
	(iv)
	the fourth Renewal Term shall be the period beginning on the day immediately following the expiration of the Third Renewal Term and expiring on the fifth (5th) anniversary of the date of expiration of the Third Renewal Term (the “Fourth Renewal Term”); and

		
	(v)
	the fifth Renewal Term shall be the period beginning on the day immediately following the expiration of the Fourth Renewal Term and expiring on the fifth (5th) anniversary of the date of expiration of the Fourth Renewal Term (the “Fifth Renewal Term”).

During the Renewal Terms, the terms and conditions of this Lease Agreement shall remain in full force and effect and Tenant shall use and occupy the Premises on the same terms and conditions as provided in this Lease Agreement relative to the Initial Lease Term; provided that, Base Rent (as defined herein) during the Renewal Terms shall be as provided in Section 7.01(B) of this Lease Agreement.
If Tenant elects to exercise a Renewal Option, Tenant shall give to Landlord written notice of such election not less than one hundred eighty (180) days prior to the expiration of the Initial Lease Term or the then-applicable Renewal Term, as the case may be.  In the event that Tenant fails to timely exercise a Renewal Option as aforesaid, then such Renewal Option, together with any and all subsequent Renewal Options, shall terminate and be of no further force or effect and, unless sooner terminated as provided elsewhere in this Lease Agreement, the Lease Term shall fully and finally expire as of the date of expiration of the Initial Lease Term or the then-applicable Renewal Term, as the case may be.
3.04.  Lease Hold-Over Provisions.  If Tenant remains in possession of the Premises after the expiration of the Lease Term, Tenant shall be deemed to be a tenant-at-sufferance at an annual Base Rent equal to one hundred fifty percent (150%) of the amount of Base Rent payable hereunder during the final Lease Year and otherwise shall comply with all of the terms and conditions of this Lease Agreement.

ARTICLE 4
Use and Operations

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4.01.  Permitted Uses.  Tenant covenants and agrees that it shall use the Premises and the Common Use Facilities only for its Air Park Operations (as defined herein) and any legally permitted uses related thereto (including, without limitation, the landing, taking off, flying over, taxiing, pushing, towing, fueling, loading, unloading, repairing,  maintaining, conditioning, servicing, and parking of aircraft or other equipment).  As used herein, the term “Air Park Operations” shall mean (1) the operation of a commercial air transport and related services business, (2) the maintenance, servicing, repair, and operation of aircraft and other equipment, (3) the sale of aircraft parts and fuel, (4) the operation of a cafeteria and concession machines, fitness center and health clinic for Tenant’s employees, agents, contractors and invitees, (5) training of personnel in connection with the operation of aircraft and related equipment, and (6) other operations that are incidental to the uses, purposes, operations and activities described in clauses (1) through (5) above.  Tenant agrees that all business and operations of Tenant must be consistent with the principal use of the Air Park as an airport, and Tenant shall be prohibited from using the Premises for any use which interferes with the use or operation of the Air Park as an airport.

4.02.  [Intentionally Omitted]
 
4.03.  Air Park Procedures Manual; Current Plans and Procedures.  Following the Effective Date, Landlord, in collaboration with LGSTX under the terms of the Operations Agreement, intends to develop and implement, and amend from time to time: (a) a comprehensive set of rules, regulations and procedures governing the use of the Air Park; (b) a schedule of rates and charges for operations at the Air Park; (c) minimum standards for aeronautical activities at the Air Park; (d) Air Park development standards; (e) an Air Park noise abatement program; (f) a storm water pollution prevention plan in accordance with applicable law (the “SWPP Plan”); (g) a spill prevention control and countermeasure plan in accordance with applicable law (the “SPCC Plan”); (h) plans and procedures for de-icing operations in and at the Air Park, including regarding the use and treatment or disposal of glycol and the location(s) and accessways for said de-icing operations (the “De-Icing Regulations”); (i) plans and procedures for security at the Air Park; (j) emergency response and evacuation plans and procedures for the Air Park; and (k) such other Air Park matters in respect of which CCPA wishes to establish procedures (collectively, the “Air Park Procedures Manual”).  As and when each component of the Air Park Procedures Manual is implemented by Landlord, Tenant agrees to comply with each such component thereof in connection with its use and occupancy of the Premises and the Common Use Facilities, so long as (a) the rules, regulations and procedures set forth in each such component of the Air Park Procedures Manual do not unreasonably interfere with the use and enjoyment by Tenant and its permitted sublessees of the Premises and the Common Use Facilities for the purposes contemplated by this Lease Agreement and (b) Tenant and such permitted sublessees are not obligated to pay to CCPA any landing fees, license fees or other use charges as may otherwise be imposed under the Air Park Procedures Manual in connection with the Air Park.
In addition, until the corresponding components of the Air Park Procedures Manual are developed and implemented, Tenant and its permitted sublessees shall comply with 

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the rules, regulations and procedures which currently are in place in respect of the Air Park as of the Effective Date, including, without limitation, current security programs and plans, current storm water pollution prevention plans, current spill prevention control and countermeasure plans, current plans regarding the use and treatment or disposal of glycol and de-icing operations generally, and emergency response and evacuation plans.
ARTICLE 5

Ownership of Fixtures

All of the Fixtures shall remain the property of Tenant and shall be removable at any time, including upon the expiration of the Lease Term; provided that Tenant shall repair any damage to the Premises caused by the removal of the Fixtures, and any Fixtures or personal property of Tenant which remain at the Premises after the expiration of the Lease Term shall be deemed abandoned and may be disposed of by Landlord without notice at Tenant’s cost and expense to be paid by Tenant to Landlord immediately upon Landlord’s request therefor.

ARTICLE 6
Liens

Tenant agrees to and shall indemnify, defend, save and hold harmless Landlord from and against any and all loss, damage, liability, expense or claim whatsoever (including reasonable fees of attorneys, paralegals, experts, court reporters and others), arising by reason of any claim or lien, including, without limitation, any judgment lien, tax lien or vendor’s lien, or any mechanic’s lien, laborer’s lien, materialmen’s lien, or other similar lien or claim based upon or arising out of the furnishing of materials, fuel, machinery, supplies or labor to or in respect of the Premises, and not expressly contracted for (or authorized) in writing by Landlord.  In the event any such lien is filed, Tenant shall cause any such lien to be discharged, at its sole cost and expense, within thirty (30) days after Tenant shall have notice of the existence of the lien or any suit, action, or other proceeding to foreclose the lien or to seek execution in respect thereof, unless such lien and the claim occasioning it both are contested or litigated in good faith by Tenant, at its sole cost and expense, and Tenant shall have posted, at its sole cost and expense, a bond (with surety) or other security reasonably satisfactory to Landlord, sufficient to insure that upon final determination of the validity of the lien or claim, any final judgment rendered against Tenant or Landlord, together with all related costs and charges, will be fully paid.

ARTICLE 7
Rent and Other Payments

7.01.  Base Rent.  During the Lease Term, Tenant shall pay to Landlord annual base rent for the Lease Year in question, as follows (“Base Rent”), as the same may be reduced by the Base Rent Credit (as defined herein) in accordance with Section 7.01(D) of this Lease Agreement:

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(A)    Initial Lease Term.  In each Lease Year during the Initial Lease Term, Tenant shall pay to Landlord annual Base Rent for the Lease Year in question as set forth below:
	
		
	Lease Year
	Annual Base Rent

	Lease Years 1 through 3, inclusive
	$3,055,302.00

	Lease Years 4 through 6, inclusive
	As determined below in this Section 7.01

	Lease Years 7 through 9, inclusive
	As determined below in this Section 7.01

Base Rent during the Initial Lease Term shall increase on the first day of (a) the fourth (4th) Lease Year and (b) the seventh (7th) Lease Year (each, an “Adjustment Date”) and shall be determined on each Adjustment Date by multiplying the annual Base Rent for the first Lease Year by a fraction, the numerator of which is the Index (as defined herein) in effect for the month of March immediately preceding the Adjustment Date and the denominator of which is the Index in effect for March, 2010 (which is 133.096).  

As used in this Lease Agreement, the term “Index” shall mean the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index - All Urban Consumers, Series ID CUURX200SAO, Not Seasonally Adjusted, Area: Midwest Size Class B/C, Item: All Items, Base Period: December 1996 = 100  (the “Index”).  If the Index at any time during the Lease Term has changed so that the base year of the Index differs from the base year initially used by the parties, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics.  If the Index is discontinued or revised during the Lease Term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index has not been discontinued or revised.  Notwithstanding the foregoing, and except as provided in Section 7.02 below, in no event shall the adjusted Base Rent due during any Lease Year be less than the Base Rent due during the prior Lease Year.  
(B)    Renewal Terms.  In each Lease Year during the Renewal Terms, as applicable, Tenant shall pay to Landlord annual Base Rent for the Lease Year in question as set forth below:
		
	(i)
	Base Rent for each Lease Year during the First Renewal Term shall be an amount equal to the annual Base Rent in effect for the seventh (7th) Lease Year during the Initial Lease Term;

		
	(ii)
	Base Rent for each Lease Year during the Second Renewal Term shall be the lesser of (a) the amount determined by multiplying the annual Base Rent for the First Renewal Term by a fraction, the numerator of which is the Index in effect for the month of March immediately preceding the Second Renewal Term and the denominator of which is the Index in effect for the month of March immediately 

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preceding the First Renewal Term, and (b) one hundred two percent (102%) of the annual Base Rent for the First Renewal Term;
		
	(iii)
	Base Rent for each Lease Year during the Third Renewal Term shall be an amount equal to the annual Base Rent in effect for the Second Renewal Term; and

		
	(iv)
	Base Rent for each Lease Year during the Fourth Renewal Term and the Fifth Renewal Term shall be an amount equal to the annual fair market rent for the Premises as determined by an appraiser mutually agreed upon by Landlord and Tenant prior to the commencement of the applicable Renewal Term, each acting reasonably.  In the event that Landlord and Tenant are unable to agree upon an appraiser, then Landlord and Tenant shall each choose one appraiser and the two appraisers so chosen shall attempt to agree on such fair market rent within 60 days after receiving the request to make such determination.  If the two appraisers so chosen cannot agree on such fair market rent within such period, and the lower fair market rent so determined is not less than 90% of the higher fair market rent, then the determination of fair market rent shall be the numerical average of the two fair market rents.  If the lower fair market rent is less than 90% of the higher fair market rent, the two appraisers shall choose one additional appraiser.  If the two appraisers cannot agree on the choice of such third appraiser within 15 days following the determination of such two fair market rents, such third appraiser shall be selected by the administrative judge of the Court of Common Pleas of Clinton County.  The third appraiser shall make an independent determination of fair market rent, which shall be submitted to Landlord and Tenant within 60 days after the third appraiser has been selected.  The determination of fair market rent shall be conclusively deemed to be the numerical average of (i) the numerical average of the higher two of the three determinations of fair market rent, and (ii) the numerical average of the lower two of the three determinations of fair market rent; provided, however, that solely for purposes of such averaging, if the lowest determination of fair market 

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rent is less than 75% of the amount of the middle determination of fair market rent, then the lowest determination of fair market rent shall be deemed to be 75% of the amount of the middle determination of fair market rent, and if the highest determination of fair market rent is more than 125% of the middle determination of fair market rent. then the highest determination of fair market rent shall be deemed to be 125% of the amount of the middle determination of fair market rent.  Each party shall pay the fees of the appraiser chosen by it, and the fees of the third appraiser, if any, shall be split equally between Landlord and Tenant; provided, however, Landlord's obligation to split the fee shall be subject to a duly authorized appropriation.  Each appraiser selected pursuant to this Section 7.01(B)(iv) shall be an Ohio-certified M.A.I. appraiser with at least 15-years’ experience appraising commercial projects.
Notwithstanding the above provisions of this Section 7.01(B) to the contrary, if, prior to the end of the Third Renewal Term, the JUMP Lease terminates pursuant to the exercise by the tenant thereunder of its early termination option under Section 3.05(b) of the JUMP Lease, then: (a) the later of (I) the effective date of termination of the JUMP Lease or (II) the commencement date of the First Renewal Term, shall be an Adjustment Date, (b) each third anniversary of the Adjustment Date established pursuant to clause (a) of this sentence shall be an Adjustment Date; and (c) as of each Adjustment Date established pursuant to clause (a) or clause (b) of this sentence, the annual Base Rent shall be adjusted to the amount determined by multiplying the annual Base Rent in effect immediately prior to such Adjustment Date by a fraction, the numerator of which is the Index in effect for the month of March immediately preceding such Adjustment Date and the denominator of which is the Index in effect for the month of March immediately preceding the immediately preceding Adjustment Date.
(C)    Terms of Payment of  Base Rent.  Base Rent hereunder shall be paid without demand, notice or setoff in equal consecutive equal monthly installments in advance commencing on the Effective Date and continuing on the first day of each and every calendar month thereafter during the Lease Term.  In the event that the Effective Date shall occur on a day which is other than the first day of a calendar month, then the installment of Base Rent payable by Tenant on the Effective Date shall be an amount equal to the product which is obtained when (a) the per diem amount of Base Rent which Tenant is obligated to pay to Landlord hereunder during the first (1st) Lease Year is multiplied by (b) the number of days which elapse during the period from (and including) the Effective Date to (but excluding) the first day of the calendar month next succeeding the month in which the Effective Date occurs.
(D)    Base Rent Credit.  In consideration of the transactions relating to the JUMP Facility and the execution and delivery of the JUMP Lease, commencing on January 1, 2014, and continuing each month thereafter for a total of one hundred fifty six (156) consecutive calendar months (inclusive of the month of January, 2014), the then-applicable monthly 

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installment of annual Base Rent under this Lease Agreement shall be reduced by an amount equal to $17,666.67 (the “Base Rent Credit”); provided, that the Base Rent Credit shall terminate immediately and prospectively as of the effective date of a termination of the JUMP Lease pursuant to the exercise by the tenant thereunder of its early termination option under Section 3.05(b) of the JUMP Lease.
7.02.  Base Rent Adjustments Resulting From Changes in Air Park Occupancy.  Landlord and Tenant recognize that Base Rent hereunder constitutes what is commonly referred to as “gross rent” which includes a component representing Landlord’s recovery of expenses relating to the operation, maintenance and repair of the areas of the Air Park that are not included in the Premises.  As of the Effective Date, such annual Air Park operating expenses amount to $1,424,096 (which amount of $1,424,096, as hereafter adjusted in the same manner and at the same times as Base Rent is adjusted as provided in Section 7.01 of this Lease Agreement, is herein referred to as the “Expense Component”).  As occupancy of the Air Park changes from time to time during the Term, Landlord and Tenant have agreed to adjust Base Rent in the manner provided in this Section 7.02, to reflect a reallocation of the Expense Component among the Air Park tenants.  Accordingly, Landlord and Tenant hereby agree as follows:
(A)    Increases in Occupancy.  In the event that a new tenant leases space in the Air Park (or a then-existing tenant leases additional space in the Air Park), then, effective as of the date that such new or then-existing tenant commences the payment of rent for such newly-leased space, Base Rent hereunder shall be reduced by an amount equal to the product of the Expense Component and a fraction, the numerator of which is the number of newly-leased square feet and the denominator of which is the total number of square feet of then-leasable space in the Air Park.  As of the Effective Date, the parties hereby agree that the Air Park includes 1,900,967 square feet of leasable space.
(B)    Decreases in Occupancy.  In the event that Base Rent is reduced in accordance with Section 7.02(A) and one or more tenants subsequently vacate space in the Air Park, resulting in the Landlord’s gross revenues arising from its ownership and operation of the Air Park being less than its total expenses incurred therefrom for the same period (an “Operating Deficit”), then, upon the request of Landlord, Landlord and Tenant shall negotiate in good faith with respect to an increase in the Base Rent to the extent required in order to alleviate such Operating Deficit, with the understanding that any resulting increase shall not result in the Base Rent exceeding that amount which it otherwise would have been in the absence of prior reductions in accordance with Section 7.02(A).  In the event that Base Rent is increased in accordance with this Section 7.02(B) and, thereafter, Landlord’s gross revenues arising from its ownership and operation of the Air Park begin to exceed its total expenses incurred therefrom for the same period due to a reduction in such expenses, then Landlord shall promptly notify Tenant thereof and the Base Rent shall be reduced on an equitable basis, with the understanding that any resulting decrease shall not result in the Base Rent being lower than that amount which it otherwise would have been in the absence of the prior increase agreed upon in accordance with this Section 7.02(B).  In conjunction with the negotiations between the parties in accordance with this Section 7.02(B), Landlord shall make available to Tenant upon request supporting documentation relating to such Operating Deficit and any such other information relating to the Operating Deficit as Tenant may reasonably request.  Any increase or subsequent decrease in the 

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Base Rent, as well as the effective dates thereof, in accordance with this Section 7.02(B) shall be documented in writing and signed by both parties.  
(C)    JUMP Lease.  Notwithstanding anything contained herein to the contrary, the foregoing Base Rent adjustment provisions shall not be triggered by or as a consequence of the execution and delivery of the JUMP Lease by Landlord and the affiliate of Tenant.
Monthly installments of Base Rent payable under this Lease Agreement shall be prorated, as appropriate, for the month during which any adjustment to Base Rent under this Section 7.02 occurs.
7.03.  Late Payments.  If Tenant is delinquent in any monthly installment of Base Rent or any other sums due hereunder for more than ten (10) days after such installment or sum is due,  Tenant shall pay to Landlord a late charge equal to five percent (5%) of such delinquent sum.  Landlord and Tenant hereby agree that any such late charge represents a fair and reasonable estimate of the costs which Landlord will incur by reason of late payment by Tenant.  The provision for such late charge shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be construed as a penalty or as limiting Landlord’s remedies in any manner.  

ARTICLE 8
Taxes, Assessments, Utilities

8.01.  Taxes and Assessments.  Tenant shall be responsible for and shall pay, when due, all intangible, personal, sales and personal property taxes in connection with the Fixtures and/or any other property or fixtures now or hereafter situated at the Premises and owned by Tenant.  Landlord will pay all real property taxes and assessments due in connection with the Air Park, including the Premises.  Tenant shall have no right to initiate any protest regarding real property taxes or assessments in connection with all or any part of the Air Park.

8.02.  Utilities.  Tenant shall pay for all water, gas, electricity, heat, light, power, telephone, sewer, sprinkler services, refuse and trash collection, and other utilities and services pertaining to the Premises, including all maintenance charges for utilities used on or at the Premises, and any storm sewer charges or other similar charges for utilities imposed by any governmental entity or utility provider pertaining to the Premises.  Tenant shall, at Tenant’s expense, endeavor in good faith to cause any of said services to be separately metered and charged directly to Tenant by the provider, if and as reasonably practical to do so and without undue expense to either party.  Tenant and Landlord each shall pay their respective shares of all charges for jointly metered utilities based upon respective consumption, as reasonably and jointly determined by Landlord and Tenant.  Neither Landlord nor Tenant shall be liable to the other for any interruption or failure of utilities or any other service to the Premises or the Air Park, respectively, and no such interruption or failure shall result in the abatement of rent hereunder or otherwise permit Tenant to terminate this Lease Agreement. 

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ARTICLE 9
Security Deposit

Tenant shall deposit with Landlord on the date hereof a security deposit in the amount of Fifty Thousand Dollars ($50,000.00) (the “Security Deposit”), which shall be held by Landlord as security for the prompt, full and faithful performance by Tenant of the terms and provisions of this Lease Agreement.  If Tenant commits a default, Landlord may use or apply the whole or any part of the Security Deposit for the payment of Tenant’s obligations hereunder.  The use or application of the Security Deposit shall not prevent Landlord from exercising any other right or remedy available to Landlord and shall not be construed as liquidated damages.  If the Security Deposit is reduced by such use or application, Tenant shall deposit with Landlord within ten (10) days after written notice, an amount sufficient to restore the full amount of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from Landlord’s general funds or pay interest on the Security Deposit.  Any remaining portion of the Security Deposit shall be returned to Tenant after Tenant has vacated the Premises in full compliance with the terms of this Lease Agreement. 

ARTICLE 10
Environmental Requirements

10.01.  General.  Other than in compliance with applicable Environmental Laws (as defined herein), Tenant shall not: (a) permit, cause or suffer any Hazardous Material (as defined herein) to be used, generated, manufactured, produced, stored, brought upon, managed or Released (as defined herein) in, on, under or from the Premises or the Common Use Facilities, or (b) store or use, or permit the storage or use of, any Hazardous Material in or about the Premises or the Common Use Facilities.  In operating its business on the Premises and in the Common Use Facilities, Tenant shall comply with all applicable Environmental Laws and will obtain, comply with, and properly maintain all permits and licenses or applications required by Environmental Laws for its operations.  

10.02.  Terms.  For the purposes of this Lease Agreement:  

(A)    “Environmental Laws” means any one or all of the following as the same are amended from time to time: the Comprehensive Environmental Response, Compensation, and Liability Act; the Resource Conservation and Recovery Act; the Toxic Substances Control Act; the Federal Water Pollution Control Act; the Federal Hazardous Materials Transportation Act; the Safe Drinking Water Act; the Clean Water Act; the Clean Air Act; any other laws (whether enacted by local, state, federal or other governmental authorities) now in effect or hereinafter enacted that deal with the regulation or protection of the environment, including the ambient air, ground water, surface water, and land use, including sub-strata land; and any regulations promulgated in connection with or under any of the foregoing.

(B)    “Hazardous Material” shall mean all substances, materials, wastes, pollutants or contaminants that are, or that become, regulated under or classified as hazardous or 

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toxic under any applicable Environmental Laws and all petroleum products, including, without limitation, gasoline, kerosene, diesel fuel, airplane fuel and like substances.

(C)    “Release” and “Released” shall mean any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, disposing, or dumping of any Hazardous Material into the environment.

10.03.  Indemnity.  

(A)Tenant shall indemnify, defend, and hold Landlord and its officers, directors, agents and employees (together, the “Indemnified Parties”), harmless from and against any and all manner of losses, claims, demands, actions, suits, damages (including, without limitation, punitive damages), fines, penalties, administrative and judicial proceedings, judgments, settlements, expenses (including, without limitation, reasonable consultant fees, attorneys’ fees, or expert fees) and/or costs (collectively, the “Indemnified Exposures”) which are brought or recoverable against, or suffered or incurred by, Landlord or the Indemnified Parties as a result of (i) Tenant’s failure to comply with the provisions of this Article 10, (ii) the Release by Tenant or any Person acting through or on behalf of Tenant of any Hazardous Materials in, on, under, or from the Premises or the Common Use Facilities during the Lease Term and/or during the ABX Prior Possession Period for which remediation is required under applicable Environmental Laws and (iii) any noncompliance with Environmental Laws caused by Tenant or ABX within the Air Park during the Lease Term or during the ABX Prior Possession Period, regardless of whether Tenant had knowledge of any of the foregoing.
(B)Without limiting the foregoing, if any condition covered by Tenant’s indemnification obligations set forth in Section 10.03(A) occurs (each an “Environmental Indemnification Condition”), then (a) Tenant shall, at its sole cost and expense, promptly take all actions as are reasonably necessary to return the Premises or the Common Use Facilities, as the case may be, or any improvements thereon (and the Air Park, to the extent applicable) in all material respects to the condition required by applicable Environmental Laws; provided, that Landlord’s approval of such actions shall first be obtained, which approval shall not be unreasonably withheld, conditioned or delayed; and (b) if, due to a Release of Hazardous Materials by Tenant or any Person acting through or on behalf of Tenant during the Lease Term or during the ABX Prior Possession Period, a governmental authority determines that site investigation, site assessment and/or a cleanup plan must be prepared or that a cleanup should be undertaken on or surrounding the Premises or the Common Use Facilities or in any improvements thereon due to any such Release by Tenant or any Person acting through or on behalf of Tenant, then, subject to the terms of this Article 10, Tenant shall, at its sole cost and expense, prepare and submit the required plans and financial assurances, and carry out the approved plans; provided that, Tenant shall have the right to participate with Landlord in all discussions and communications with such governmental authority with respect to such matters and the right to contest in good faith and with diligence any such determination by such governmental authority, and to assert claims against any third party.  Anything contained in this Agreement to the contrary notwithstanding, Tenant shall have no responsibility or liability under this Agreement for cleanup or any other action relating to a Release of Hazardous materials in, 

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on or under, or from the Premises or the Common Use Facilities occurring prior to the ABX Prior Possession Period.
(C)The following terms shall apply to any and all Indemnified Exposures claims made by Landlord against Tenant relating to any Environmental Indemnification Condition under this Lease Agreement:
 
		
	(i)
	Prior to asserting any such Indemnified Exposures claim against Tenant, Landlord shall provide to Tenant: (a) prompt, written notice of such Indemnified Exposures claim with sufficient detail so as to permit Tenant to understand the nature of such claim, and (b) if curable, a reasonable opportunity for Tenant to cure the same by causing action to be taken to remedy or otherwise address the Environmental Indemnification Condition  (and/or the consequences thereof, including, without limitation, fines or penalties) which gives rise to such Indemnified Exposures claim.

		
	(ii)
	Landlord’s claims relating to Indemnified Exposures shall be limited to Indemnified Exposures arising out of or relating to any one or all of the following:  (a) any claims, actions, suits, proceedings or demands instituted or asserted by a third party, including, without limitation, by a governmental authority having jurisdiction; (b) one or more Environmental Indemnification Conditions that materially interfere with any bona fide then-existing use or reasonably anticipated use of the Premises and/or the Air Park by Landlord or its employees, agents, tenants or invitees; (c) one or more Environmental Indemnification Conditions that reasonably do or could adversely affect the health, safety or welfare of the public or any user of or invitee at the Air Park taking into account any applicable standards for such health, safety and public welfare considerations included in the applicable Environmental Laws; or (d) one or more Environmental Indemnification Conditions which Landlord is required by applicable Environmental Laws to address; and

		
	(iii)
	Landlord’s claims relating to remediation of an Indemnified Environmental Condition shall be limited to those costs reasonably necessary to attain Ohio EPA Voluntary Action Program standards 

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applicable to the current “Land Use and Activities” category for the Premises and/or the affected Common Use Facilities, as the case may be, as that term is defined in Ohio Administrative Code 3745-300-08(C)(2)(c)(iii)(March 1, 2009 edition), with no use of groundwater for any purpose other than monitoring and no use of subsurface structures for human occupancy, and not for any other more superior uses or more stringent standards.
(D)The indemnification and hold harmless obligations of Tenant under this Section 10.03 shall survive any expiration or termination of this Lease Agreement, any renewal, expansion or amendment of this Lease Agreement and/or the execution and delivery of any new lease with Tenant covering all or any portion of the Premises or the Air Park.  The term “Indemnified Exposures” shall include, without limitation, necessary costs incurred in connection with any investigation of on-site conditions or off-site conditions directly relating to Releases of Hazardous Materials by Tenant or its permitted sublessees from the Premises or the Common Use Facilities or any necessary cleanup, remediation, removal or restoration work required by an Environmental Law because of any matter covered by Tenant’s indemnification under this Section 10.03. 

10.04.  Reporting.  Tenant, at Tenant’s own cost and expense, shall make all submissions to, provide all information to, and comply with all applicable requirements of the appropriate governmental authorities as required of Tenant under applicable Environmental Laws.  At no cost or expense to Landlord, Tenant shall promptly provide information reasonably requested by Landlord that is in Tenant’s possession or subject to its control to (a) determine the applicability of the Environmental Laws to the Premises or operations conducted thereon, or (b) respond to any governmental inquiry or investigation or to respond to any claim of liability by third parties which is related to environmental conditions in connection with the Premises.

Tenant shall promptly notify Landlord of any of the following:  (a) any correspondence or communication from any governmental authority regarding the application of Environmental Laws to the Premises or Tenant’s operations on the Premises or at the Air Park, (b) any change in Tenant’s operations on the Premises or at the Air Park that will change Landlord’s obligations or could increase or reasonably be expected to increase Tenant’s or Landlord’s obligations or liabilities under Environmental Laws and (c) any incidents occurring in or at the Premises and/or any other areas within the Air Park regarding Hazardous Material, including, without limitation, any Release of Hazardous Material.  At any time Tenant submits any filing or required documentation pertaining to investigations or violations relative to Hazardous Materials situated in or on or Released from the Premises or the Common Use Facilities to any governmental authority (other than the Internal Revenue Service), including, by way of example but not in limitation, the FAA, the Environmental Protection Agency or any similar State of Ohio agency or department, Tenant shall provide duplicate copies of the filing(s) made, along with any related documents, to Landlord.

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At Landlord’s request upon or promptly after expiration, termination or cessation of this Lease Agreement for any reason, Tenant shall make available to Landlord, at Landlord’s expense, for copying all environmental inspections, reports or other documentation related to compliance with, or activity related to compliance with, Environmental Laws at or about the Premises or the Common Use Facilities.  

10.05.  Landlord Assessments.  In accordance with the provisions of Article 21 hereof, Landlord shall have such access to, and a right to perform such inspections and tests of, the Premises as it may reasonably require to determine compliance with Environmental Laws and Tenant’s obligations hereunder.  Such inspections and tests shall be conducted at Landlord’s expense, unless such inspections or tests document, that Tenant has violated any Environmental Laws and/or the terms of this Lease Agreement, in which case Tenant shall, upon demand, reimburse Landlord for the reasonable cost of such inspection and tests documenting Tenant’s non-compliance.  At the expiration or earlier termination of this Lease Agreement, Landlord shall have the right, at its option and at Landlord’s sole cost and expense, to undertake an environmental assessment of the Premises.  Landlord and Tenant agree that Landlord’s receipt of or satisfaction with any environmental assessment in no way waives any rights that Landlord holds against Tenant or any defenses that Tenant holds against Landlord.

10.06.  Related Tenant Obligations.  As soon as reasonably practicable after the Effective Date:  (A) Tenant, at its sole cost and expense, shall cease to use and shall mechanically plug (or reroute to the sanitary sewer if proper governmental approvals are obtained and maintained at no expense to Landlord) all indoor floor drains within the Premises that currently do or could discharge directly or indirectly to the storm sewer system at the Air Park; (B) Landlord and Tenant shall work cooperatively to effect, if and as reasonably practical to do so and without undue expense to either party, possible changes to the current City of Wilmington WWTP Permit No. 1015-09 for sanitary sewage discharges, including, without limitation, to establish procedures and protocols to separately measure, and/or to obtain a separate permit for, discharges by Tenant into the City of Wilmington sanitary sewer system; and (C) Landlord and Tenant shall work collaboratively to determine the necessity and/or appropriateness of Tenant obtaining its own Industrial Activities Stormwater Permit from Ohio EPA relating to Tenant’s activities in or on the Premises and/or the Common Use Facilities. 

ARTICLE 11
General Indemnification
11.01.  General Indemnification Obligations.  To the fullest extent permitted by law, and in addition to and not in limitation of any other indemnification provisions set forth in this Lease Agreement, but subject to the provisions of Section 12.03 hereof, Tenant shall indemnify, defend and hold harmless Landlord from and against: (i) any loss, liability, or damage suffered or incurred by Landlord arising from or in connection with (a) Tenant’s use or occupancy of the Premises and/or Tenant’s performance of its responsibilities under this Lease Agreement (other than losses, liabilities or damages that actually are covered by the insurance policies described in Section 12.02 hereof), or (b) the non-performance of the terms of this Lease Agreement to be performed by Tenant; (ii) any loss, liability, or damage suffered or incurred by 

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Landlord on account of injury to Person or property or from loss of life sustained in, on, or about the Premises or the Air Park resulting from the willful misconduct or negligent act or omission of Tenant or of its employees or from any act or omission of Tenant or of its employees that violates applicable laws; and (iii) all actions, suits, proceedings, demands, assessments, judgments, costs and expenses (including reasonable attorney’s fees) directly relating to the foregoing.  In the event that a claim for indemnification results from or arises out of a circumstance described in Section 10.03 and such claim could also be asserted under this Article 11, then such claim shall be brought under, and be subject to the conditions of, Section 10.03.
11.02.  Claims Procedures.  In the event that any claim is asserted, or any action or proceeding is instituted, against Landlord by reason of any event or occurrence in respect of which Tenant is to provide indemnity as provided in Section 11.01 of this Lease Agreement:
(A)    Tenant shall, if requested in writing by Landlord, cause such claim, action or proceeding to be resisted, defended and resolved, at the Tenant’s sole cost and expense, and by legal counsel to be approved by Landlord, which approval shall not be unreasonably withheld or delayed; or
(B)    In the event that Tenant shall fail to engage legal counsel within thirty(30) days after the written request contemplated by clause (A) above, Landlord may cause such claim, action or proceeding to be resisted and defended by legal counsel designated by Landlord, in which event Tenant shall reimburse Landlord, upon demand made from time to time, for the costs thereby incurred by Landlord (including the reasonable fees of attorneys, paralegals, experts, court reporters and others) and actual amounts paid to resolve any such claim, action or proceeding.
ARTICLE 12
Insurance 
12.01.  Tenant’s Insurance.  Tenant shall obtain and maintain in full force and effect throughout the Lease Term, at Tenant’s expense, the following insurance:
(A)    Commercial general liability (CGL) and, if necessary, commercial umbrella insurance, with liability limits of not less than Five Million Dollars ($5,000,000) combined single limit coverage.  If such CGL insurance contains a general aggregate limit, it shall apply separately to the Premises.  Such CGL insurance shall be provided pursuant to a stand-alone policy or as part of a commercial aviation liability policy and shall cover liability on an occurrence basis arising from premises, operations, independent contractors, products-completed operations, personal and advertising injury and liability assumed under an insured contract.  
(B)    Automobile Liability insurance with liability limits of not less than Five Million Dollars ($5,000,000) combined single limit per accident (without annual aggregate) for bodily injury and property damage.  Defense costs shall apply in addition to the limit of liability.  Coverage shall include contractual liability and shall apply to owned, leased, hired and non-owned autos, both on and off the Air Park.  

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(C)    Statutory workers’ compensation coverage as required by the State of Ohio and employer’s liability with limits of not less than One Million Dollars ($1,000,000) bodily injury by accident, One Million Dollars ($1,000,000) bodily injury by disease, and One Million Dollars ($1,000,000) bodily injury by disease, each employee.
(D)    Commercial property insurance covering the Fixtures.  Such insurance shall cover the perils covered under the ISO special causes of loss form (CP 10 30) and shall cover the replacement cost of the property insured.
Tenant shall cause Landlord to be identified, by endorsement, as an additional insured in connection with any and all insurance policies (other than the commercial property insurance policy, workers’ compensation policies, and employer’s liability policies) provided for under this Lease Agreement and, upon Landlord’s request, shall deliver or cause to be delivered to Landlord evidence of said insurance coverages in the form of appropriate certificates of insurance and endorsements to the underlying policies.  Such policies and certificates of insurance shall provide that Landlord will be notified in writing at least thirty (30) days prior to the cancellation, material change or non-renewal of any such insurance policy.
12.02.  Landlord’s Insurance.  Landlord shall obtain and maintain in full force and effect throughout the Lease Term, at Landlord’s expense (except as herein provided), commercial property insurance covering the Air Park, including the Buildings.  Such insurance shall cover the perils covered under the ISO special causes of loss form (CP 10 30) and, as to Buildings in which the Premises are situated, shall cover the replacement cost of the Buildings insured.  Tenant shall reimburse Landlord for its proportionate share of the premiums paid by Landlord for the commercial property insurance covering the Building(s) in which the Premises are located, such proportionate share to be determined on a Building-by-Building basis and to be equal to the product of (i) the amount of the premium paid by Landlord in connection with the pertinent insured Building and (ii) a fraction, the numerator of which is the number of square feet of leasable space occupied by Tenant under this Lease Agreement in the pertinent insured Building and the denominator of which is the total number of square feet of leasable space contained in the pertinent insured Building.  Such reimbursement shall be made not later than fifteen (15) days following a written request therefor from Landlord accompanied by evidence of payment of such premium and a calculation of the amount of the requested reimbursement.
12.03.  Waiver of Subrogation.  Landlord and Tenant hereby waive recovery of damages against each other for loss or damage to their property to the extent the same is or could be covered by the commercial property insurance required in Sections 12.01 and 12.02 above.  Because the provisions of this Section 12.03 preclude the assignment of any claim mentioned herein, by way of subrogation or otherwise, to an insurance company or any other person, each party to this Lease Agreement shall give to each insurance company which has issued to it one or more policies of commercial property insurance notice of the terms of the mutual releases contained in this Section 12.03, and have such insurance policies properly endorsed, if necessary, to prevent the invalidation of insurance coverages by reason of these mutual releases.
ARTICLE 13
Maintenance and Repair; Alterations; Signage

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13.01.  Maintenance and Operation.  Tenant shall, at its sole cost and expense, cause the Premises at all times during the Lease Term to be operated, maintained and repaired in good condition and repair and in compliance with all present and future laws, codes, rules, orders, ordinances, regulations, statutes and requirements of any federal, state, county, or other governmental entity having jurisdiction, including, without limitation, the Americans with Disabilities Act of 1990.  Tenant shall not use, permit or suffer the use of the Premises, the Common Use Facilities or any part of either of them, for any unlawful purpose or for any dangerous or noxious trade or business, or in violation of any occupancy permit issued in respect thereof.  Tenant shall not commit, suffer or permit waste in or to the Premises or the Common Use Facilities.

13.02.  Alterations.  Tenant shall not make any alterations, improvements or additions to the Premises, unless and until Tenant has received Landlord’s prior written consent and approval of the complete plans and specifications therefor, which consent and approval shall not be unreasonably withheld, conditioned or delayed by Landlord.  All such alterations, improvements or additions shall be performed in all material respects in accordance with the approved plans and specifications.

13.03.  Signage.  Tenant may, at its own expense, maintain the signage which exists on the Premises on the Effective Date.  Tenant shall not make any modifications to any signs or install any new or additional signs unless and until Tenant has received Landlord’s prior written consent and approval of the complete plans and specifications therefor, which consent and approval shall not be unreasonably withheld, conditioned or delayed by Landlord.  All such signage shall be constructed and displayed in all material respects in accordance with the approved plans and specifications and in compliance with local, state and federal laws, ordinances and regulations.

ARTICLE 14
Casualty Damage

14.01.  Landlord Election.  In the event that any portion of the Premises is damaged or destroyed by fire or any other casualty (“Casualty Damage”), Landlord may elect, at its option, by written notice to Tenant given within sixty (60) days after the occurrence of the Casualty Damage: (a) to repair and restore the Premises (but not any of the Fixtures); (b) to effect a Partial Termination (as defined herein); or (c) to terminate this Lease Agreement.  Notwithstanding the foregoing, in the event that Casualty Damage occurs to the Premises that is covered by the commercial property insurance to be obtained and maintained by Landlord pursuant to Section 12.02 hereof, then Tenant, at Tenant’s option exercised by written notice to Landlord given within the earlier to occur of (i) sixty (60) days after the occurrence of the Casualty Damage or (ii) ten (10) days following Tenant’s receipt of Landlord’s election not to repair and restore the Premises pursuant to Section 14.01(b) or (c) hereof, Landlord shall be obligated to repair and restore the Premises (but not any of the Fixtures), in which case, any election by Landlord not to repair and restore the Premises pursuant to Section 14.01(b) or (c) hereof shall be deemed to have been overridden and Landlord shall be deemed to have elected to 

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repair and restore the Premises pursuant to Section 14.01(a) hereof (the “Tenant Override Option”).  In the event that Tenant exercises the Tenant Override Option and the costs of such repair and restoration to the Premises shall exceed $1,000,000.00, then no termination of this Lease Agreement by Tenant pursuant to Section 24.15 hereof shall be effective until the date that is at least one (1) year from the date of completion of said repair and restoration of the Premises.

14.02.  Restoration.  In the event Landlord shall elect (or shall be deemed to have elected pursuant to the Tenant Override Option) to repair and restore the Premises under Section 14.01(a) hereof, then (a) Landlord shall promptly commence repair and restoration of the Premises to the condition the Premises were in immediately prior to the Casualty Damage and diligently pursue such repair and restoration to completion and (b) this Lease Agreement shall continue in full force and effect; provided, that Base Rent shall temporarily abate from the date of the Casualty Damage through the completion by Landlord of the repair or restoration of the Premises in order to reflect the portion of the Premises rendered temporarily unusable by the Casualty Damage and shall be determined by multiplying the annual Base Rent then in effect by a fraction, the numerator of which shall be the number of square feet in the Premises which remain usable by Tenant during such repair and restoration and the denominator of which shall be 518,434.  

14.03.  Partial Termination.  If any Casualty Damage results in the destruction of one or more of the Buildings but not all of the Premises, Landlord may elect pursuant to Section 14.01(b) to terminate this Lease Agreement only with respect to the portion of the Premises which was materially affected by such Casualty Damage and maintain this Lease Agreement in full force and effect with respect to the portion of the Premises not materially affected by the Casualty Damage (a “Partial Termination”).  In the event of a Partial Termination, annual Base Rent shall be permanently reduced to reflect the reduced area of the Premises and shall be determined by multiplying the annual Base Rent then in effect by a fraction, the numerator of which shall be the number of square feet contained in the Premises after such Partial Termination and the denominator of which shall be 518,434.

14.04.  Tenant Election Upon Substantial Damage.  If Landlord has elected to repair and restore the Premises under Section 14.01(a) or to cause a Partial Termination under Section 14.01(b) (a “Continuation Election”), but Casualty Damage is so extensive so as to result in a permanent substantial adverse impact upon Tenant’s business conducted on or from the Premises, Tenant may elect to terminate this Lease Agreement upon written notice to Landlord together with documentation which clearly demonstrates the basis for the Tenant’s election to terminate, which notice and supporting documentation shall be given, if at all, within twenty (20) days following receipt of the Continuation Election.  

14.05.  Total Termination.  In the event this Lease Agreement is properly terminated in accordance with Section 14.01(c) or Section 14.04 of this Lease Agreement, this Lease Agreement and all rights and obligations hereunder shall terminate effective as of the thirtieth (30th) day after the party electing to terminate this Lease Agreement has provided notice of such election to the other party.  All Base Rent and other sums required to be paid by Tenant hereunder shall be apportioned and paid as of the effective date of such termination.

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ARTICLE 15
Condemnation

15.01.  Total Condemnation.  If all of the Premises are taken by any condemning authority under the power of eminent domain or otherwise, or by any purchase or other acquisition in lieu of eminent domain or otherwise (a “Total Take”), or if Tenant has the right to and does terminate this Lease Agreement in accordance with Section 15.02(A)(i) below, then this Lease Agreement and the Lease Term shall terminate as of the date when possession of the Premises is required by the condemning authority, and all Base Rent and other sums required to be paid by Tenant hereunder shall be apportioned and paid to the date of such taking.

15.02.  Partial Condemnation.

(A)    In the event that only a portion of the Premises is taken or condemned by any condemning authority, Landlord shall immediately send written notice thereof to Tenant.  If said portion of the Premises so taken or condemned constitutes a “substantial portion of the Premises” as defined in Section 15.02 (C) below, then Tenant shall have the right to elect, by written notice to Landlord within twenty (20) days after receipt from Landlord of the aforesaid notice of condemnation, either: (i) to terminate this Lease Agreement as of the date of the taking of possession by the condemning authority, in which event the Base Rent and all other charges shall be apportioned and paid to the date of the taking, or (ii) to terminate this Lease Agreement only with respect to the portion of the Premises taken by such condemning authority and otherwise to continue this Lease Agreement in full force and effect.  In the event that any such taking or condemnation involves less than a “substantial portion of the Premises”, or if it does involve a “substantial portion of the Premises” but Tenant makes the election set forth in clause 15.02(A)(ii) above, then Base Rent will be reduced to reflect the reduced area of the Premises and will be determined by multiplying the annual Base Rent then in effect by a fraction, the numerator of which shall be the number of square feet contained in the Premises after the taking and the denominator of which shall be 518,434 and such reduced Base Rent will become effective upon the date of such taking.  

(B)    If this Lease Agreement is not terminated as set forth in Section 15.01 or 15.02(A)(i)  hereof, then the award or payment for the taking shall be paid to and used by Landlord to restore, with reasonable dispatch, the portion of the Premises remaining, after the taking, to substantially the same condition and tenantability as existed immediately preceding the taking.

(C)    A “substantial portion of the Premises” shall be deemed to have been condemned if such condemnation relates to a portion of the Premises the absence of which would reasonably result in a permanent substantial adverse impact upon Tenant’s business conducted on or from the Premises.

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(D)    Termination of this Lease Agreement because of condemnation shall be without prejudice to the rights of either Landlord or Tenant to recover from the condemning authority compensation and damages for the injury and loss sustained by them as a result of the taking.  Landlord shall have the right to recover from the condemning authority compensation and damages for the injury and loss sustained by Landlord as a result of the taking of the Premises, including land and any improvements.  Tenant shall have the right to make an independent claim against the condemning authority for the Fixtures, interruption or dislocation of business in the Premises, loss of good will, and for moving expenses as long as such claim by Tenant does not reduce the amount payable to Landlord.

ARTICLE 16
Assignment and Subletting

16.01.  Assignment.  Tenant shall not assign this Lease Agreement or its rights in or to the Premises or the Common Use Facilities, or permit the assumption of all or any part of the obligations of Tenant under this Lease Agreement, without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed by Landlord.  Notwithstanding any such consent, and unless otherwise agreed in the pertinent assignment documentation, Tenant will remain jointly and severally liable (along with any approved assignee), and Landlord shall be permitted to enforce the provisions of this Lease Agreement directly against Tenant and/or any assignee without being required to proceed in any way against the other.  For purposes of this Section 16.01, (a) an assignment shall mean the direct or indirect sale, conveyance, mortgage, hypothecation, pledge, transfer or assignment of this Lease Agreement by Tenant, or the assumption of Tenant’s obligations hereunder, to or by any Persons, but shall not include (i) any security interest granted by Tenant in this Lease Agreement as required by the terms of any credit facility of Tenant and/or its Affiliates, or (ii) an assignment of Tenant's rights under this Agreement to a successor or parent corporation in connection with any sale of substantially all of the assets or stock of Tenant, whether via merger or otherwise and (b) a “merger” refers to any merger in which Tenant participates, regardless of whether it is the surviving or disappearing entity.

16.02.  Subletting.     Tenant shall not sublease all or any part of the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed by Landlord.  For purposes of this Lease Agreement, a “sublease” shall include subleases, licenses, concessions, and all other possessory arrangements entered into by Tenant in respect of the Premises.  If Landlord consents to a sublease, no such subletting shall release or relieve Tenant from any of its obligations under this Lease Agreement.  Notwithstanding the foregoing, the following shall be deemed to have been consented to by Landlord as sublessees: (a) the Affiliates of Tenant which are identified on Exhibit E, attached hereto and fully incorporated herein, occupying those pertinent portions of the Premises as identified on said Exhibit E, and (b) any relocation, from time to time and within the defined boundaries of the Premises, of the physical offices or work stations of administrative employees of Tenant or the Affiliates of Tenant identified on Exhibit E, as amended from time to time (a “Permitted Space Adjustment”).  For the avoidance of doubt, a Permitted Space Adjustment shall not include a relocation of employees of Tenant or the aforesaid Affiliates of Tenant if such 

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relocation causes any portion of the Premises that houses administrative offices prior to any such relocation to be used for non-administrative offices. 

ARTICLE 17
Conveyance or Encumbrancing by Landlord

17.01.  Conveyances.  Landlord shall have the unrestricted right to sell, assign, convey or transfer to any Person all or any part of its right, title or interest in or to the Premises; subject, however, to this Lease Agreement.  In the event of a sale or transfer of the Premises, Landlord (or, in the case of a subsequent transfer, the transferor) shall, after the date of such transfer, be automatically released from all further liability for the performance or observance of any term, condition, covenant or obligation required to be performed or observed by Landlord hereunder, and the transferee shall be deemed to have assumed all of such terms, conditions, covenants and obligations, it being intended hereby that such terms, conditions, covenants and obligations shall be binding upon Landlord, its successors and assigns, only during and in respect of their successive periods of ownership during the Lease Term.  Upon Tenant’s request, Landlord shall deliver to Tenant copies of the recorded deed and any lease assignment executed and delivered by Landlord in connection with any such conveyance by Landlord.

17.02.  Subordination and Attornment.  This Lease Agreement and Tenant’s interest and rights hereunder are and shall be subject and subordinate at all times to the lien of any mortgage of Landlord’s right, title and interest in and to the Premises (a “Fee Mortgage”), now existing or hereafter created on or against the Air Park or the Premises, and all amendments, restatements, renewals, modifications, consolidations, refinancing, assignments and extensions thereof, without the necessity of any further instrument or act on the part of Tenant.  Tenant agrees, at the election of the holder of any such Fee Mortgage (a “Fee Mortgagee”), to attorn to any such holder, provided that the Fee Mortgagee agrees to not disturb the possession, use or enjoyment of the Premises by Tenant, or disaffirm this Lease Agreement, so long as Tenant shall fully perform its obligations under this Lease Agreement.  Tenant agrees to execute, acknowledge and deliver, within ten (10) days following Landlord’s request therefor, such commercially reasonable instruments confirming such subordination and attornment as shall be requested by any Fee Mortgagee.  Notwithstanding the foregoing, any Fee Mortgagee may at any time subordinate its Fee Mortgage to this Lease Agreement, without notice or Tenant’s consent, and thereupon this Lease Agreement shall be deemed prior to such Fee Mortgage without regard to their respective dates of execution, delivery or recording and in that event such Fee Mortgagee shall have the same rights with respect to this Lease Agreement as though this Lease Agreement had been executed prior to the execution, delivery and recording of such Fee Mortgage.

17.03.  Notice and Cure Rights.  If Tenant shall serve Landlord with any notice claiming a default or breach of this Lease Agreement by Landlord, Tenant shall serve a duplicate of said notice upon each Fee Mortgagee, provided that Tenant has received the name and address of such Fee Mortgagees.  The Fee Mortgagees shall be permitted to correct or remedy the breach or default complained of within a reasonable time after the expiration of Landlord’s time to do so and with the same effect as if Landlord itself had done so.

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ARTICLE 18
Default; Termination

18.01.  Default by Tenant.  Tenant shall create, and there shall exist, an event of default (herein called an “Event of Default”) under this Lease Agreement if:

(A)    Tenant shall fail to pay any installment of Base Rent required to be paid by Tenant within ten (10) days after the same shall become due for payment; or

(B)    Tenant shall fail in any material respect to perform or comply with any other obligation of Tenant under this Lease Agreement, and such failure is not performed or corrected within thirty (30) days after notice of such default from Landlord (or, if such failure is not capable of being performed or corrected within such thirty (30) day period, if Tenant shall not commence the correction of such default within thirty (30) days after notice of such default from Landlord and proceed with due diligence to complete such correction within a reasonable time, but in no event longer than ninety (90) days from the notice of such default); or

(C)    Tenant shall make a general assignment for the benefit of creditors, or if Tenant’s interest in the Premises is sold upon execution or other legal process; or

(D)    Tenant shall suffer a receiver to be appointed in any action or proceeding by or against Tenant, and such appointment is not stayed or discharged within sixty (60) days after the commencement thereof, or if Tenant is a debtor in any insolvency proceeding conducted pursuant to the laws of any state or of a political subdivision of any state and such proceeding is not stayed or discharged within sixty (60) days after the commencement thereof, or if Tenant shall be or become, either voluntarily or involuntarily, a debtor in any case commenced under the provisions of the U.S. Bankruptcy Code, as amended, and such case is not stayed or discharged within sixty (60) days after the commencement thereof.

18.02.  Rights of Landlord upon Tenant’s Default.  In the event that Tenant shall create or suffer an Event of Default under this Lease Agreement, in addition to the other rights and remedies available to Landlord hereunder, in equity or at law, Landlord, at its option, shall have the following remedies:  

(A)Without cancelling or terminating this Lease Agreement or the Lease Term, Landlord shall have the right to repossess the Premises and terminate all rights of Tenant with respect to the Premises and the Common Use Facilities, to possess the Premises and the Fixtures and each and every part thereof and to expel Tenant therefrom and to endeavor to relet all or any part of the Premises from time to time for any unexpired part of the Lease Term.  In the event of such repossession and reletting by Landlord, Landlord may collect the rents from any such reletting, applying the same first to the payment of reasonable expenses of such repossession and reletting (the “Reletting Expenses”, which shall include attorneys’ fees, brokerage fees, expenses for redecoration, alterations and other costs in connection with preparing the Premises for new tenants) and then as a credit against the Base Rent and additional charges due or to become due from Tenant under this Lease Agreement, with Tenant to pay to 

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Landlord each month following any such repossession by Landlord any deficiency between Base Rent and other sums due and payable hereunder by Tenant for such month and the amount of any rent (net of Reletting Expenses) collected by Landlord during such month from any reletting tenant.  Except as expressly provided in this Section 18.02(A), neither such termination of the right of Tenant to occupy the Premises, nor such repossession and possession by Landlord, shall relieve Tenant from its obligations to pay Base Rent and all other amounts payable by Tenant under the terms of this Lease Agreement, and/or to perform and observe all of the obligations of Tenant under this Lease Agreement. 
(B)Landlord shall have the right to cancel and terminate this Lease Agreement and the Lease Term at any time (including any time after Landlord has elected to terminate Tenant’s right of possession as provided in subsection 18.02(A) of this Lease Agreement), which termination shall not impair in any manner Landlord’s right to recover from Tenant any damages arising as a consequence of an Event of Default hereunder or such termination of this Lease Agreement; provided that, in no event shall Tenant be liable for consequential, indirect or punitive damages.

18.03.  Landlord Right To Cure Tenant Defaults.  If Tenant shall create or suffer an Event of Default under this Lease Agreement, Landlord may (but shall not be required to) cure such default on behalf of Tenant (without thereby waiving any of the rights otherwise afforded to Landlord under Article 18 of this Lease Agreement by reason of such default), and the amount of the reasonable cost to Landlord of curing any such default shall be paid by Tenant to Landlord on demand, together with interest thereon at a per annum rate equal to the “prime rate” of Bank of America (as such rate is announced or disclosed from time to time), plus four percent (4%) (the “Default Rate”), or at the maximum rate of interest permitted by law if less than the Default Rate, from the date or dates of payment thereof by Landlord.

ARTICLE 19
Surrender

Upon the exercise by Landlord of its right to obtain possession of the Premises upon the occurrence of an Event of Default hereunder, or upon the expiration or sooner termination of this Lease Agreement, Tenant shall (i) surrender the Premises to Landlord, with all improvements, parts and surfaces thereof clean and free of debris and in good operating order, condition and state of repair, ordinary wear and tear excepted and (ii) appropriately effect, at Tenant’s sole cost and expense and in accordance with all applicable Environmental Laws, the closure of all Resource Conservation and Recovery Act (“RCRA”) storage areas in and on the Premises and/or the Common Use Facilities (and such other areas in and on the Premises and/or the Common Use Facilities which should have been designated and permitted as RCRA storage areas in accordance with applicable Environmental Laws) wherein Tenant or its Affiliates caused, suffered or permitted the storage of Hazardous Waste either prior to or during the Lease Term.  

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ARTICLE 20
Quiet Enjoyment

Landlord covenants with and warrants and represents to Tenant that, so long as no Event of Default occurs or exists hereunder, and except as otherwise expressly provided herein, Tenant shall, at all times during the Lease Term, peaceably and quietly have, hold, occupy and enjoy the Premises, without hindrance or molestation by Landlord or by any Person claiming rights through Landlord in respect of the Premises, other than rights created by Tenant. 
ARTICLE 21
Inspection

Landlord and its duly authorized representatives may enter the Premises at all reasonable times, upon at least twenty-four (24) hours’ prior written notice to Tenant (or, in the event of an emergency, such notice as may be reasonable under the circumstances), to view and inspect the Premises and to inspect all repairs, additions and alterations or to perform any work which may be necessary by reason of Tenant’s default under the terms of this Lease Agreement; provided, that any such inspections shall not unreasonably interfere with the activities of Tenant or its agents or contractors in or on the Premises, nor cause or result in any damage to the Premises.

ARTICLE 22
Notices and Payments

22.01.  Notices.  Any notice or other communication required or permitted to be given to a party under this Lease Agreement shall be in writing and shall be given by one of the following methods to such party, at the address set forth at the end of this Section 22.01:  (i) it may be sent by registered or certified United States (U.S.) mail, return receipt requested and postage prepaid, or (ii) it may be sent by ordinary U.S. mail or delivered in person or by courier, telecopier, fax transmission, electronic mail or any other means for transmitting a written communication.  Any such notice shall be deemed to have been given as follows:  (i) when sent by registered or certified U.S. mail, as of the second business day after it was mailed, and (ii) when sent or delivered by any other means, upon receipt, with written or electronic confirmation thereof.  Either party may change its address for notice by giving written notice thereof to the other party.  The address of each party for notice initially is as follows:

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	Landlord
	Tenant

	Clinton County Port Authority
	Air Transport Services Group, Inc.

	1113 Airport Road
	145 Hunter Drive

	Wilmington, OH 45177
	Wilmington, OH 45177

	Attn:  Kevin J. Carver
	Attn:  Joseph C. Hete

	Fax No.: (937) 366-5005
	Fax No.:  (937) 382-2452

	E-Mail Address: kcarver@ccportauthority.com
	E-Mail Address:  Joe.Hete@atsginc.com

	 
	 

	With copies to:
	With copies to:

	D. Scott Powell, Esq.
	W. Joseph Payne, Esq., General Counsel

	Vorys, Sater, Seymour and Pease LLP
	Air Transport Services Group, Inc.

	52 E. Gay Street
	145 Hunter Drive

	Columbus, OH 43216-1008
	Wilmington, OH 45177

	Fax No.:  614-719-4912
	Fax No.:  (937) 382-2452

	E-Mail Address:  dspowell@vorys.com
	E-Mail Address: Joe.Payne@atsginc.com

22.02.  Place of Payment; No Setoff.  All Base Rent and other payments required to be made by Tenant to Landlord shall be delivered or mailed to Landlord at the address specified in Section 22.01 hereof, or any other address Landlord may specify from time to time by written notice given to Tenant, without notice or demand and without abatement, deduction or setoff of any amount whatsoever.

ARTICLE 23
Compliance with Laws

23.01.  General Compliance.  At all times during the Lease Term, Tenant shall, in respect of this Lease Agreement and its use and occupancy of the Premises, comply with all applicable federal, state and local laws, codes, ordinances, rules and regulations, and any other applicable requirements.

23.02.  Incorporation of Provisions of Law.  Each and every provision required by applicable federal, state or local laws, codes, ordinances, rules and regulations to be included in this Lease Agreement shall be deemed to be incorporated herein by reference and included in this Lease Agreement, and this Lease Agreement shall be read, construed and enforced as though each such provision were set forth herein.

ARTICLE 24
Miscellaneous Provisions

24.01.  Brokers, Finders and Others.  Landlord and Tenant each warrant and represent to the other that it has had no compensable dealings, negotiations, agreements, consultations or other transactions with any broker, finder, or other intermediary in respect of the Premises or this Lease Agreement, and that no Person is entitled to any brokerage fee, 

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commission, or other payment in respect of this Lease Agreement, the transactions contemplated thereby and/or the Premises, arising from agreements, arrangements or undertakings made or effected by it with any third Persons.

24.02.  Memorandum of Lease Agreement.  This Lease Agreement shall not be filed in any public office or records.  Landlord and Tenant shall, upon request by the other, execute and deliver a memorandum of lease or similar instrument reflecting such of the terms of this Lease Agreement as may be acceptable to the parties, which instrument shall be in a form recordable under the laws, regulations and customs of the State of Ohio and its political subdivisions, and which instrument shall be recorded in appropriate public offices.

24.03.  Estoppel Certificates.  Each party shall, within ten (10) days after written request from the other party, from time to time and at any time, complete, execute, acknowledge and deliver to the requesting party a written instrument, in a form prepared and presented by the requesting party and acceptable to the other party, certifying that this Lease Agreement is unmodified and in full force and effect (or if there have been modifications, that it is in full force and effect as modified and stating the modifications), and the dates to which Base Rent and other charges have been paid in advance, if any, and stating whether, to the knowledge of such party, the requesting party is in default in the performance of any obligation of such requesting party under this Lease Agreement, and, if so, specifying each such default of which such party has knowledge and certifying any other fact reasonably requested to be certified by the requesting party, it being intended that any such instrument may be delivered to and relied upon by any prospective purchaser of Landlord’s interest in the Premises and any prospective assignee of Tenant’s leasehold estate in the Premises, or any mortgagee or prospective mortgagee in respect thereof or any part thereof.

24.04.  Successors and Assigns.  Except as otherwise specifically provided herein, this Lease Agreement shall inure to the benefit of and be binding upon the respective successors and assigns (including successive, as well as immediate, successors and assigns) of Landlord and of Tenant.

24.05.  Governing Law.  This Lease Agreement shall be governed by and construed in accordance with the laws of the State of Ohio.

24.06.  Remedies Cumulative.  All rights and remedies of Landlord and of Tenant enumerated in this Lease Agreement shall be cumulative and, except as specifically contemplated otherwise by this Lease Agreement, none shall exclude any other right or remedy allowed at law or in equity, and said rights or remedies may be exercised and enforced concurrently.  No waiver by Landlord or by Tenant of any covenant or condition of this Lease Agreement, to be kept or performed by any other party, shall constitute a waiver by the waiving party of any subsequent breach of such covenant or condition, or authorize the breach or nonobservance on any other occasion of the same or any other covenant or condition of this Lease Agreement.

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24.07.  Duplicate Originals.  This Lease Agreement may be executed in one or more counterparts, each of which shall be deemed to be a duplicate original, but all of which, taken together, shall constitute a single instrument.

24.08.  Article and Section Captions.  The Article and Section captions contained in this Lease Agreement are included only for convenience of reference and do not define, limit, explain or modify this Lease Agreement or its interpretation, construction or meaning, and are in no way to be construed as a part of this Lease Agreement.
    
24.09.  Severability.  If any provision of this Lease Agreement or the application of any provision to any Person or any circumstance shall be determined to be invalid or unenforceable, then such determination shall not affect any other provision of this Lease Agreement or the application of said provision to any other Person or circumstance, all of which other provisions shall remain in full force and effect, and it is the intention of Landlord and of Tenant that if any provision of this Lease Agreement is susceptible of two or more constructions, one of which would render the provision valid and the other or others of which would render the provision invalid, then such provision shall have a meaning which renders it valid.

24.10.  Amendments in Writing; Annexes.  No officer, employee, or other servant or agent of Landlord or of Tenant is authorized to make any representation, warranty, or other promise not contained in this Lease Agreement in respect of the subject matter hereof.  No amendment, change, termination or attempted waiver of any of the provisions of this Lease Agreement shall be binding upon Landlord or Tenant, unless in writing and signed by the party affected.  Each of the annexes, exhibits or instruments attached hereto are hereby expressly incorporated herein by this reference.

24.11.  No Third Party Beneficiaries.  Except as otherwise expressly provided herein:  (a) the provisions of this Lease Agreement are for the exclusive benefit of the parties hereto and are not for the benefit of any other Person, and (b) this Lease Agreement shall not be deemed to have conferred any rights, express or implied, upon any third Person.

24.12.    Security.  Tenant acknowledges and agrees that Landlord is not providing any security services with respect to the Premises and that Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by theft or any other injury (including death) or damage suffered or incurred by Tenant or its employees or agents in connection with any unauthorized entry into the Premises or any other breach of security with respect to the Premises.  Tenant will cooperate with Landlord in connection with any security conducted by or on behalf of Landlord in connection with the Air Park.  

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24.13.    Miscellaneous Requirements.  

In connection with its use and occupancy of the Premises, Tenant hereby agrees as follows:

(A)Tenant understands and agrees that nothing herein contained will be construed to grant or authorize the granting of an exclusive right to provide aeronautical services to the public as prohibited by 49 USC 40103(e), as amended, and Landlord reserves the right to grant to others the privilege and right of conducting any one or all activities of an aeronautical nature;
(B)Tenant agrees to comply with the notification and requirements covered in Part 77 of the Federal Aviation Regulations (to the extent applicable to Tenant and to the extent Landlord notifies Tenant of such applicability) in the event any future structure or building is planned for the Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises;
(C)Landlord reserves for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises.  This public right of flight will include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off from, or operation on the Air Park; and
(D)Tenant agrees that it will not make use of the Premises in any manner which might interfere with the landing and taking off of aircraft from the Air Park or otherwise constitute a hazard.  In the event the aforesaid covenant is breached, Landlord reserves the right to enter upon the Premises and cause the abatement of such interference at the expense of Tenant.
In addition, Landlord contemplates that, reasonably promptly after the Effective Date, Landlord will enter into discussions with the FAA and other pertinent governmental authorities for, and plans to make application for, such governmental grants, loans and/or other funds as may be available to assist Landlord in the ongoing operation, development and/or improvement of the Air Park (the “Government Funding”).  In connection therewith, and in particular in connection with any FAA-related funding programs, Landlord is advised that the owners and tenants of the Air Park will be subjected to certain government-mandated requirements regarding the use and operation of the Air Park, including the provisions hereinafter set forth (collectively, the “Funding Requirements”).  Accordingly, in connection with any Government Funding obtained by Landlord, Landlord shall provide to Tenant copies of the pertinent Government Funding agreements which give rise to the pertinent Funding Requirements and, thereupon, Tenant shall comply with the following provisions if, and to the extent included in such Funding Requirements and disclosed to Tenant, and such other Funding Requirements, if any, as may be agreed upon by Landlord and Tenant:

		
	(1)
	In the event facilities are constructed, maintained, or otherwise operated on the Premises, Tenant will maintain and operate such facilities and services in compliance with all requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended;

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	(2)
	Tenant covenants and agrees that:  (1) no Person, on the grounds of race, color or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in, the use of the Premises; (2) in the construction of any leasehold improvements on, over or under the Premises and the furnishing of services thereon, no Person on the grounds of race, color or national origin will be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination by Tenant; and (3) Tenant will use the Premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended;

		
	(3)
	Tenant agrees to furnish service on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, that Tenant may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar types of price reductions to volume purchasers;

		
	(4)
	Tenant assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person will on the grounds of race, creed, color, national origin or sex be excluded from participating in any employment activities covered by 14 CFR Part 152, Subpart E.  Tenant assures that no person will be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by 14 CFR Part 152, Subpart E.  Tenant assures that it will require that its covered suborganizations provide assurances to Landlord that they similarly will undertake affirmative action programs, and that they will require assurances from their suborganizations, as required by 14 CFR Part 152, Subpart E, to the same effect; and

		
	(5)
	Tenant agrees that it will insert the above four provisions in any lease, sublease or other such document by which Tenant grants a right or privilege to any person, firm or corporation to render accommodations and/or services to the public on the Premises.

24.14.  Survival.  The provisions of this Lease Agreement shall survive the expiration or earlier termination of this Lease Agreement for so long as either party bears any liability or responsibility hereunder and until such time as Landlord or Tenant, as the case may be, shall have realized upon all of their respective rights or exercised all of their respective remedies hereunder. 

24.15.  [Intentionally Omitted]
24.16.  Patriot Act.  Tenant hereby certifies to Landlord that:  (i) it is not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any 

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Executive Order or the United States Treasury Department as a terrorist, “Specifically Designated National and Blocked Person,” or other banned or blocked person, group, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and (ii) it is not engaged in this transaction, directly or indirectly, on behalf of any such person, group, entity or nation.
24.17.  Amendment and Restatement of Original Lease.  Notwithstanding anything contained herein to the contrary, Landlord and Tenant hereby acknowledge and agree that this Lease Agreement shall amend, restate, and supersede in its entirety the Original Lease, as amended by the First Lease Amendment, effective as of the Execution Date.
[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, this Lease Agreement was executed on the Execution Date on behalf of Landlord and Tenant by the duly authorized officials or officers thereof, to be effective as of the Effective Date.

	
		
	LANDLORD:

CLINTON COUNTY PORT AUTHORITY

By:  /s/ Kevin J. Carver                                 .
Kevin J. Carver
Executive Director

	TENANT:

AIR TRANSPORT SERVICES GROUP, INC.

By:  /s/ Joseph C. Hete                                     .
Joseph C. Hete
President and Chief Executive Officer

	 
	 

STATE OF OHIO
COUNTY OF FRANKLIN, SS:

The foregoing instrument was acknowledged before me this 21 day of December 2012, by Kevin J. Carver, the Executive Director of the Clinton County Port Authority, a body corporate and politic and a port authority duly organized and validly existing under the State of Ohio, on behalf of said port authority.

/s/ C. Kimbra Rader                            Notary Public
STATE OF OHIO
COUNTY OF CLINTON, SS:

The foregoing instrument was acknowledged before me this 20 day of  
December, 2012, by Joseph C. Hete, President and Chief Executive Officer of Air Transport Services Group, Inc., a Delaware corporation, on behalf of the corporation.

/s/ Beth Allen    
Notary Public

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FISCAL OFFICER’S CERTIFICATE

The undersigned fiscal officer of the Clinton County Port Authority (the “Port”) hereby certifies that the money required to meet the obligations of the Port for fiscal year 2012 under the agreement to which this certificate is attached has been lawfully appropriated by the Port for that purpose and is in the treasury of the Port or is in the process of collection to the credit of an appropriate fund, free from any previous encumbrances, and is not appropriated for any other purpose.  This certificate is given in compliance with Sections 5705.41 and 5705.44 of the Ohio Revised Code.

Dated:  December 21,  2012

/s/ Brian C. Smith                 
Secretary
Clinton County Port Authority

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EXHIBIT A

The Air Park

TRACT 1:

SITUATE IN THE CITY OF WILMINGTON, CLINTON COUNTY, OHIO, VIRGINIA
MILITARY SURVEY NUMBERS 625, 1162, 1170, 2027, 2690 AND NUMBER 2694 AND BEING PART OF THE LANDS AS CONVEYED BY DEED TO WILMINGTON AIR PARK, INC. AS RECORDED IN (SEE TABLE I) THE CLINTON COUNTY DEED RECORDS AND CLINTON COUNTY OFFICIAL RECORDS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:  COMMENCING FOR REFERENCE AT A CONCRETE MONUMENT FOUND IN THE LINE OF VMS NUMBER 1162 AND NUMBER 1170, BEING THE NORTHWESTERLY CORNER OF WILMINGTON AIR, INC.'S 74.578 ACRE TRACT (DEED NO. 24, TABLE I) AND CORNER TO THE GREAT OAKS JOINT VOCATIONAL SCHOOL DISTRICT'S REMAINING PART 92.076 ACRE TRACT (DEED BOOK 239, PAGE 482), AND ALSO BEING IN THE NORTHWESTERLY RIGHT OF WAY OF AIRPORT ROAD; THENCE WITH A LINE OF SAID REMAINING PART 92.076 ACRE TRACT, SAID 74.578 ACRE TRACT AND SAID MILITARY SURVEY LINE S 41°17'49" E 53.28' TO A RAILROAD SPIKE FOUND IN THE CENTERLINE OF AIRPORT ROAD AND BEING THE TRUE POINT OF BEGINNING FOR THIS TRACT HEREIN DESCRIBED; THENCE WITH THE PROLONGATION OF SAID PREVIOUS LINE S 41°17'49" E 39.79' TO AN IRON PIN SET IN THE SOUTHEASTERLY RIGHT OF WAY OF AIRPORT ROAD; THENCE WITH THE SOUTHEASTERLY RIGHT OF WAY OF AIRPORT ROAD S 51°30'20" W 189.75' TO A CONCRETE MONUMENT FOUND AT THE INTERSECTION WITH THE NORTHWESTERLY RIGHT OF WAY OF AIRBORNE ROAD; THENCE WITH SAID RIGHT OF WAY OF AIRBORNE ROAD S 37°48'06" W 635.35' TO A CONCRETE MONUMENT FOUND AT THE CORNER OF THE RIGHT OF WAY OF WEIL WAY; THENCE WITH THE RIGHT OF WAY OF WEIL WAY N 52°08'40" W 154.89' TO A CONCRETE MONUMENT FOUND IN THE SOUTHEASTERLY RIGHT OF WAY OF AIRPORT ROAD; THENCE WITH SAID RIGHT OF WAY OF AIRPORT ROAD S 51°30'20" W 102.90' TO A CONCRETE MONUMENT FOUND; THENCE CONTINUING WITH RIGHT OF WAY OF WEIL WAY S 52°08'40" E 179.27' TO CONCRETE MONUMENT FOUND IN THE RIGHT OF WAY OF AIRBORNE ROAD; THENCE WITH SAID RIGHT OF WAY OF AIRBORNE ROAD S 37°48'06" W 630.25' TO AN IRON PIN SET AT THE CORNER OF THE RIGHT OF WAY OF RUANE DRIVE; THENCE WITH RIGHT OF WAY OF RUANE DRIVE N 52°09'47" W 332.94' TO A CONCRETE MONUMENT FOUND IN THE RIGHT OF WAY OF AIRPORT ROAD; THENCE WITH THE RIGHT OF WAY OF AIRPORT ROAD S 51°30'20" W 102.92' TO A RAILROAD SPIKE FOUND AT THE CORNER OF THE RIGHT OF WAY OF RUANE DRIVE; THENCE WITH SAID RIGHT OF WAY S 52°09' 47" E 357.33' TO A CONCRETE MONUMENT FOUND IN THE RIGHT OF WAY OF AIRBORNE ROAD; THENCE WITH SAID RIGHT OF WAY OF AIRBORNE ROAD S 37°48'06" W 1382.49' TO A CONCRETE MONUMENT FOUND AT THE CORNER OF EWE WAREHOUSE INVESTMENTS V, LTD'S 

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7.243 ACRE TRACT (OFFICIAL RECORD 312, PAGE 140); THENCE WITH THE LINE OF SAID 7.243 ACRE TRACT N 52°10'13" W 372.54' TO AN IRON PIN SET; THENCE CONTINUING WITH LINE OF SAID 7.243 ACRE TRACT S 37°46'04" W 775.93' TO A 5/8" IRON PIN FOUND IN THE LINE OF SAID EWE WAREHOUSE INVESTMENTS V, LTD'S 6.518 ACRE TRACT (OFFICIAL RECORD 312, PAGE 131); THENCE WITH THE LINE OF SAID 6.518 ACRE TRACT N 48°25'41" W 542.03' TO A RAILROAD SPIKE FOUND IN AIRPORT ROAD; THENCE CONTINUING WITH THE LINE OF SAID 6.518 ACRE TRACT S 46°51'16" W 384.78' TO A RAILROAD SPIKE FOUND IN THE CENTERLINE OF OLD STATE ROUTE 73 AND CORNER TO AIRLINE PROFESSIONAL ASSOCIATION TEAMSTER LOCAL 1224 1.000 ACRE TRACT (OFFICIAL RECORD 328, PAGE 711); THENCE WITH THE LINE OF SAID 1.000 ACRE TRACT S 47°56'48" W 19.22' TO A 5/8" IRON PIN FOUND, A CORNER TO GREAT OAKS JOINT VOCATIONAL SCHOOL DISTRICT'S REMAINING PART 262.282 ACRE TRACT (OFFICIAL RECORD 239, PAGE 482); THENCE WITH SAID SCHOOL DISTRICT'S LINES ON THE FOLLOWING COURSES:  N 48°25'35" W 554.05' TO AN IRON PIN SET; THENCE S 38°12'31" W 502.96' TO A 1/2" IRON PIN FOUND; THENCE S 47°59'29" W 295.07' TO A 1/2" IRON PIN FOUND; THENCE N 42°02'27" W 339.91 TO AN IRON PIN SET; THENCE S 48°18'06" W 118.31' TO A 1/2" IRON PIN FOUND; THENCE N 42°25'19" W 261.00', A PK NAIL FOUND IN CONCRETE BEARS S 25°47'38" E 0.11'; THENCE S 48°18'06" W 750.00' TO A 1/2" IRON PIN FOUND; THENCE S 41°41'28" E 399.97' TO A 1/2" IRON PIN FOUND; THENCE N 48°19'32" E 206.62' TO A 1/2" IRON PIN FOUND BENT; THENCE S 41°38'10" E 689.93' TO AN IRON PIN SET; THENCE N 47°31'40" E 275.00' TO AN IRON PIN SET; THENCE S 41°38'01" E 628.96' TO AN IRON PIN SET AT THE CORNER OF AVIATION FUEL, INC.'S 6.092 ACRE TRACT (DEED BOOK 285, PAGE 339); THENCE WITH THE NORTHWESTERLY LINE OF SAID 6.092 ACRE TRACT S 48°21'17" W 762.89' TO AN IRON PIN SET; THENCE CONTINUING WITH THE LINE OF SAID 6.092 ACRE TRACT S 41°39'36" E (PASSING AN IRON PIN SET AT 345.53') 347.53'; THENCE CONTINUING WITH THE SOUTHEASTERLY LINE OF SAID 6.092 ACRE TRACT N 48°19'41" E 764.87' TO AN IRON PIN SET IN THE LINE OF SAID SCHOOL DISTRICT'S REMAINING PART 262.282 ACRE TRACT; THENCE WITH THE LINE OF SAID SCHOOL DISTRICT'S LAND S 41°59'12" E 223.37' TO A CONCRETE MONUMENT FOUND AT A CORNER TO THE AIRBORNE ROAD RIGHT OF WAY; THENCE WITH SAID RIGHT OF WAY OF AIRBORNE ROAD ON THE FOLLOWING COURSES:  S 37°48'06" W 2918.18' TO A CONCRETE MONUMENT MARKING THE BEGINNING OF A CURVE TO THE RIGHT HAVING A RADIUS OF 1150.00'; THENCE WITH SAID CURVE MEASURED ALONG THE ARC A DISTANCE OF 903.21' FROM WHICH THE LONG CHORD BEARS S 60°18'06" W 880.17' TO A CONCRETE MONUMENT FOUND; THENCE S 82°48'06" W 2331.02' TO A CONCRETE MONUMENT FOUND MARKING A CURVE TO THE LEFT HAVING A RADIUS OF 1250.00'; THENCE WITH SAID CURVE MEASURED ALONG THE ARC A DISTANCE OF 730.74' FROM WHICH ALONG CHORD BEARS S 66°03'16" W 720.38' TO A CONCRETE MONUMENT FOUND; THENCE S 49°18'25" W 911.14' TO A CONCRETE MONUMENT FOUND MARKING THE BEGINNING OF A CURVE TO THE RIGHT HAVING A RADIUS OF 1150.00'; THENCE WITH SAID CURVE MEASURED ALONG THE ARC A DISTANCE OF 385.70' FROM WHICH A LONG CHORD BEARS S 58°54'55" W 383.89' TO A, CONCRETE MONUMENT FOUND; THENCE S 68°31'24" W 2263.22' TO A 

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CONCRETE MONUMENT FOUND; THENCE N 65°31'24" W 48.63' TO A CONCRETE MONUMENT FOUND IN THE RIGHT OF WAY OF STATE ROUTE 134; THENCE WITH SAID RIGHT OF WAY S 19°31'15" E 133.17' TO A CONCRETE MONUMENT FOUND IN THE LINE OF THE CITY OF WILMINGTON'S 25.52 ACRE TRACT (DEED BOOK 196, PAGE 45); THENCE WITH THE CITY'S LINE S 68°31'24" W 30.03' TO A PK NAIL FOUND IN THE CENTERLINE OF SAID STATE ROUTE 134; THENCE WITH SAID CENTERLINE N 19°31'57" W 2517.43' TO A RAILROAD SPIKE FOUND; THENCE N 71°42'34" E AND BECOMING THE SOUTHEASTERLY RIGHT OF WAY OF DAVIDS DRIVE (PASSING AN IRON PIN SET AT 30.00') 184.98' TO AN IRON PIN SET, A CORNER TO THE COMMUNITY IMPROVEMENT CORPORATION'S (ALSO REFERRED TO AS CIC) REMAINING PART 84.791 ACRE TRACT (OFFICIAL RECORD 66, PAGE 559); THENCE WITH THE LINE OF SAID 84.791 ACRE TRACT ON THE FOLLOWING COURSES:  S 25°31'18" E 83.08' TO AN IRON PIN SET; THENCE S 71°17'58" E 144.92' TO AN IRON PIN SET; THENCE S 14°02'40" E 129.25' TO AN IRON PIN SET; THENCE N 86°08'22" E 343.76' TO AN IRON PIN SET THENCE S 41°22'12" E 1033.98' TO AN IRON PIN SET; THENCE N 46°19'30" E 230.15' TO AN IRON PIN SET; THENCE N 37°47'40" E 600.49' TO AN IRON PIN SET;
THENCE N 52°10'47" W 50.00' TO AN IRON PIN SET AT THE SOUTHEASTERLY
CORNER OF THE BOARD OF COUNTY COMMISSIONERS' 14.500 ACRE TRACT
(OFFICIAL RECORD 302, PAGE 717); THENCE WITH THE LINE OF SAID 14.500
ACRE TRACT AND BECOMING THE LINE OF SAID COMMISSIONERS' 5.000 ACRE TRACT, CIC'S REMAINING PART 187.99 ACRE TRACT (DEED BOOK 281, PAGE 698), AND NAVIGATOR GROUP OF OCALA, INC.'S 30.000 ACRE TRACT (OFFICIAL RECORD 342, PAGE 564) N 37°47'40" E 4501.42' TO AN IRON PIN SET IN THE LINE OF R.L.R. INVESTMENTS, L.L.C.'S 17.393 ACRE TRACT (OFFICIAL RECORD 331, PAGE 121); THENCE WITH THE LINE OF SAID 17.393 ACRE TRACT S 52°12'20" E 44.50' TO A 1/2" IRON PIN FOUND; THENCE CONTINUING WITH THE LINE OF SAID 17.393 ACRE TRACT AND BECOMING THE LINE OF R.L.R. INVESTMENTS, L.L.C.'S 15.854 ACRE TRACT (OFFICIAL RECORD 311, PAGE 337), DAVID H. STEWART'S 5.969 ACRE TRACT (OFFICIAL RECORD 249, PAGE 661), SANDRA K. WHITLEY'S 5.900 ACRE TRACT (OFFICIAL RECORD 277, PAGE 32) AND JOHN M. STANFORTH'S 10.240 ACRE TRACT (OFFICIAL RECORD 339, PAGE 134) N 37°47'38" E 4220.18' TO A 5/8" IRON PIN FOUND; THENCE CONTINUING WITH STANFORTH'S LINE N 48°28'45" W 344.86' TO A 5/8" IRON PIN FOUND IN THE LINE OF THE CLINTON COUNTY ANIMAL PROTECTIVE ASSOCIATION FOR THE PREVENTION OF CRUELTY TO ANIMALS 1.322 ACRE TRACT (DEED BOOK 268, PAGE 139); THENCE WITH THE LINE OF SAID 1.322 ACRE TRACT AND BECOMING THE LINE OF WILMINGTON COLLEGE'S 60.45 ACRE TRACT (OFFICIAL RECORD 231, PAGE 735), THE NATIONAL BANK AND TRUST CO.'S 205.51 ACRE TRACT (OFFICIAL RECORD 180, PAGE 818), AND THE LINE OF B. ANTHONY WILLIAMS TRUST'S REMAINING PART 536.23 ACRE TRACT (OFFICIAL RECORD 349, PAGE 119) N 37°48'39" E 4357.17' TO A 1" IRON PIN FOUND; THENCE WITH THE WILLIAMS TRUST'S LANDS ON THE FOLLOWING COURSES:  S 52°13'32" E 309.65' TO A 1/2" IRON PIN FOUND; THENCE N 29°16'39" E 908.59', A 5/8" IRON PIN FOUND BEARS S 6°19'35" E 0.16'; THENCE S 52°11'31" E 524.99' TO A 5/8" IRON PIN FOUND; THENCE N 37°48'29" E 900.00' TO A 5/8" IRON PIN FOUND; THENCE S 52°11'31" E 

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400.00', A 5/8" IRON PIN, FOUND BEARS S 31°27'27" E 0.16'; THENCE S 37°48’ 29" W 900.00' TO A 1/2" IRON PIN FOUND; THENCE S 52°11'31" E 524.99' TO A 5/8" IRON PIN FOUND AT A CORNER TO ABX AIR, INC.'S REMAINING PART 113.525 ACRE TRACT (OFFICIAL RECORD 88, PAGE 438); THENCE WITH THE LINE OF SAID 113.525 AND BECOMING THE LINE OF WILMINGTON COMMERCE PARK PARTNERSHIP'S 6.130 ACRE TRACT (OFFICIAL RECORD 350, PAGE 505) AND THE LINE OF PREVIOUS SAID GREAT OAKS JOINT VOCATIONAL SCHOOL DISTRICT'S REMAINING PART 92.076 ACRE TRACT S 46°19'54" W 1373.16' TO A 1/2" IRON PIN FOUND; THENCE WITH SAID SCHOOL DISTRICT'S LINE S 52°11'49" E 938.65' TO AN IRON PIN SET AT THE CORNER OF AVIATION FUEL, INC.'S 4.586 ACRE TRACT (DEED BOOK 285, PAGE 337), AN IRON PIN SET BEARS S 69°20'39" W 0.36'; THENCE WITH THE LINES OF SAID 4.586 ACRE TRACT ON THE FOLLOWING COURSES:  S 40°42'14" W 400.42' TO A 5/8" IRON PIN FOUND; THENCE N 52°08'36" W 118.01' TO A MAG NAIL SET; THENCE S 37°49'33" W 27.76' TO A DRILL HOLE FOUND IN CONCRETE; THENCE S 52°16'50" E (PASSING A NAIL FOUND AT 50.00') 587.82' TO A 5/8" IRON PIN FOUND; THENCE N 37°47'15" E 426.46' TO A 1/2" IRON PIN FOUND IN THE LINE OF SAID SCHOOL DISTRICT'S LANDS; THENCE WITH THE LINE OF SAID SCHOOL DISTRICT'S REMAINING PART 92.076 ACRE TRACT S 52°14'24" E 317.64' TO A 1/2" IRON PIN FOUND; THENCE CONTINUING WITH SAID SCHOOL DISTRICT'S LINE S 37°55'13" W 565.93' TO A 1" IRON PIN FOUND; THENCE STILL WITH THE LINE OF SAID SCHOOL DISTRICT'S LAND S 52°12'33" E 451.34' TO A 1/2" IRON PIN FOUND AT THE CORNER OF THE CITY OF WILMINGTON'S 0.84 ACRE TRACT (OFFICIAL
RECORD 204, PAGE 219); THENCE WITH THE LINE OF SAID 0.84 ACRE TRACT S 37°50'00" W 244.92' TO AN IRON PIN SET AT THE CORNER OF ROTARY FORMS PRESS, INC.'S 4.896 ACRE TRACT (DEED BOOK 264, PAGE 1); THENCE WITH THE LINE OF SAID 4.896 ACRE TRACT N 52°15'20" W 554.15' TO A 3/4" IRON PIN FOUND IN THE LINE OF R.L.R. INVESTMENTS, L.L.C.'S REMAINING PART 5.362 ACRE TRACT (OFFICIAL RECORD 298, PAGE 283); THENCE WITH THE LINE OF SAID R.L.R. INVESTMENTS ON THE FOLLOWING COURSES:  N 37°44'43" E 14.01' TO A 5/8" IRON PIN FOUND; THENCE N 52°14'57" W 330.66' TO A CHISELED "X" FOUND IN CONCRETE; THENCE S 37°49'36" W 310.99' TO A CHISELED "X" FOUND IN CONCRETE; THENCE S 52°15'28" E AND BECOMING THE CENTERLINE OF HUNTER DRIVE 365.11' TO A RAILROAD SPIKE FOUND; THENCE WITH THE CENTERLINE OF HUNTER DRIVE S 37°48'20" W 497.69' TO A RAILROAD SPIKE FOUND AT THE INTERSECTION WITH THE CENTERLINE OF RUANE DRIVE; THENCE WITH THE CENTERLINE OF RUANE DRIVE S 52°08'34" E 684.83' TO A RAILROAD SPIKE FOUND, A CORNER TO WILMINGTON AIR PARK INC.'S 0.392 ACRE TRACT (OFFICIAL RECORDS 492, PAGE 324); THENCE WITH THE LINES OF SAID 0.392 ACRE TRACT ON THE FOLLOWING COURSES:  S 37°46'29" W 159.87'; THENCE S 52°08'20" E 106.84'; THENCE N 37°45'40" E 159.87' TO A RAILROAD SPIKE FOUND IN THE CENTERLINE OF RUANE DRIVE; THENCE WITH SAID CENTERLINE S52°08'34" E 264.73' TO A PK NAIL FOUND IN THE CENTERLINE OF AIRPORTROAD; THENCE WITH THE CENTERLINE OF AIRPORT ROAD N 51°30'59" E 1654.26' TO THE TRUE POINT OF BEGINNING CONTAINING 1105.562 ACRES OF LAND, MORE OR LESS.

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TOGETHER WITH A NON-EXCLUSIVE ACCESS EASEMENT FOR THE BENEFIT OF TRACT 1, AS CREATED BY AN ACCESS EASEMENT FROM THE BOARD OF EDUCATION OF GREAT OAKS INSTITUTE OF TECHNOLOGY AND CAREER DEVELOPMENT,  FKA GREAT OAKS JOINT VOCATIONAL SCHOOL DISTRICT TO WILMINGTON AIR PARK, INC., FILED IN DEED VOLUME 145, PAGE 662, RECORDER'S OFFICE, CLINTON COUNTY, OHIO, WHICH EASEMENT IS MORE SPECIFICALLY DESCRIBED AS FOLLOWS:

SITUATED IN UNION TOWNSHIP, CLINTON COUNTY, OHIO, AND BEING A PART OF M.S. #1162 .  BEGINNING AT A PIN AT THE SOUTHERLY CORNER OF THE 52.038 ACRE TRACT AS RECORDED IN VOLUME 24, PLAT NO. 252, OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION:  RUNNING THENCE, FROM SAID POINT OF BEGINNING, WITH THE LINES OF SAID 52.038 ACRE TRACT, ON THE FOLLOWING COURSES:  (1) N. 41° 59' 35" W., 570.29 FEET TO A PIPE; (2) N. 41° 38' 23" W., 75.00 FEET TO A POINT; THENCE, ON THE FOLLOWING COURSES:  (1) N. 48° 21' 37" E., 30.00 FEET TO A POINT; (2) S. 41° 38' 23" E., 74.91 FEET TO A POINT; (3) S. 41° 59' 35" E., 564.79 FEET TO A POINT; THENCE, WITH A LINE OF SAID 52.038 ACRE TRACT, S. 37° 47' 49" W., 30.48 FEET TO THE POINT OF BEGINNING.

 
NOTE:  THE ABOVE DESCRIBED TRACT 1 SAVES AND EXCEPTS A 5.001 ACRE TRACT AS CONVEYED BY DEED TO AVIATION FUEL AS RECORDED IN CLINTON COUNTY OFFICIAL RECORD 212, PAGE 848 AND DESCRIBED AS FOLLOWS:  

SITUATE IN THE CITY OF WILMINGTON, CLINTON COUNTY, OHIO, AND BEING A PART OF MS NO. 1162 AND BOUNDED AND DESCRIBED AS FOLLOWS:  COMMENCING AT A 3/4" IRON PIPE (FOUND) AT THE NORTHERLY CORNER OF A 6.092 ACRE TRACT AS CONVEYED TO AVIATION FUEL, INC. IN VOLUME 285, PAGE 339 OF THE CLINTON COUNTY, OHIO, DEED RECORDS, SAID PIPE BEING AT A CORNER OF A 195.568 ACRE TRACT AS RECORDED IN VOLUME 24, PAGE NO. 12 OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION AND AT A CORNER OF A 52.038 ACRE TRACT AS RECORDED IN VOLUME 24, PLAT NO. 254 OF SAID RECORD OF LAND DIVISION; THENCE, WITH A LINE OF SAID 195.568 ACRE TRACT AND SAID 52.038 ACRE TRACT, N 41°38'23" W 75.00 FEET TO A POINT; THENCE, S 48°08'00" W 542.30 FEET TO A 1/2" IRON PIN (SET) AT THE POINT OF BEGINNING FOR THE HEREIN DESCRIBED TRACT:  RUNNING THENCE, FROM SAID POINT OF BEGINNING, BY NEW DIVISION LINES, ON THE FOLLOWING COURSES: (1) S 48°37'45" W 561.48 FEET TO A 1/2" IRON PIN (SET); (2) N 41°22'15" W 388.00 FEET TO A 1/2" IRON PIN (SET); (3) N 48°37'45" E 561.48 FEET TO A 1/2" IRON PIN (SET); (4) S 41°22'15" E 388.00 FEET TO THE POINT OF BEGINNING, CONTAINING FIVE AND ONE THOUSANDTH (5.001) ACRES.

THE ABOVE DESCRIBED CONTAINS 43.743 ACRES IN VMS NUMBER 625, 412.687 ACRES IN VMS NUMBER 1162, 35.261 ACRES IN VMS 1170, 542.797 ACRES IN VMS 

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NUMBER 2027, AND 69.871 ACRES IN VMS NUMBER 2690 AND 1.20 ACRES IN VMS 2694.

THIS SURVEY IS BASED UPON A FIELD SURVEY CONDUCTED UNDER THE DIRECTION OF R. DOUGLAS SUTTON, OHIO PROFESSIONAL SURVEYOR NO. 7124 BY CLINCO & SUTTON SURVEYORS IN SEPTEMBER, 2001.  IRON PINS REFERRED TO AS SET ARE 5/8" DIAMETER STEEL AND 30" IN LENGTH WITH A YELLOW CAP STAMPED "CLINCO & SUTTON". BEARINGS ARE BASED UPON AN ASSUMED AZIMUTH AND ARE FOR ANGULAR MEASUREMENT PURPOSES ONLY.  RECORDED IN VOLUME 33, PAGE 203, OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION.

NOTE:  THE ABOVE DESCRIBED TRACT  1 SAVES AND EXCEPTS A  0.843 ACRE TRACT  FURTHER DESCRIBED AS FOLLOWS:  

SITUATED IN UNION TOWNSHIP, CLINTON COUNTY, OHIO, AND BEING A PART OF MILITARY SURVEY NO. 1162 AND BOUNDED AND DESCRIBED AS FOLLOWS:

BEGINNING AT A 1⁄2" IRON PIN (FOUND) AT THE SOUTHERLY CORNER OF THE 8.370 ACRE TRACT AS RECORDED IN VOLUME 20, PLAT NO. 197, OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION:
RUNNING THENCE, FROM SAID POINT OF BEGINNING, WITH A LINE OF SAID 8.370 ACRE TRACT, N. 52° 15' 44" W. 150.00 FEET TO A 1⁄2" IRON PIN (SET); THENCE, BY A NEW DIVISION LINE, N. 37° 47' 36" E. 244.98 FEET TO A 1⁄2" IRON PIN (SET); THENCE, WITH THE LINES OF THE AFORESAID 8.370 ACRE TRACT, ON THE FOLLOWING COURSES: (1) S. 52° 13' 33" E. 150.00 FEET TO A 1⁄2" IRON PIN (FOUND); (2) S. 37° 47' 36" W. 244.88 FEET TO THE POINT OF BEGINNING, CONTAINING EIGHT HUNDRED FOURTY THREE THOUSANDTHS (0.843) OF AN ACRE.
 

NOTE:   THE ABOVE DESCRIBED TRACT  1 SAVES AND EXCEPTS A 47.225 ACRE TRACT   FURTHER DESCRIBED AS FOLLOWS:

Situated in the State of Ohio, County of Clinton, Township of Union, City of Wilmington, lying in Virginia Military Surveys 625, 2694 and 2027, and being part of that 1100.621 acre tract conveyed as Tract 1 to Wilmington Air Park LLC by deed of record in Official Record 516, Page 610 (all references are to the records of the Recorder’s Office, Clinton County, Ohio) and being more particularly described as follows:

BEGINNING at a railroad spike found at the intersection of the southerly right-of-way line of Airborne Road as dedicated in the “Dedication Plat Airborne Road & Extensions of Ruane Drive and Weil Way” of record in Plat Book 7, Pages 50A-51B (width varies) and the easterly right-of-way line of State Route 134 (60 feet wide), being a southeasterly corner of said 1100.621 acre tract and being in a northerly line of that 25.52 acre tract as conveyed to the City of Wilmington of record in Deed Book 196, Page 45; 

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Thence South 68° 51' 20" West, with the northerly line of said 25.52 acre tract, a distance of 30.02 feet to a magnetic nail found on the centerline of State Route 134 at the corner common to said 1100.621 acre tract and said 25.52 acre tract and on easterly line of that 102.36 acre tract conveyed to James W. Foland and Betty M. Foland of record in Deed Book 216, Page 176;

Thence North 19° 11' 59" West, with the centerline of said State Route 134 and with the easterly line of said 102.36 acre tract and with the easterly line of that 94.658 acre tract conveyed to Homer Wendell Harding, Trustee of record in Official Record 507, Page 897 and also conveyed to Ruth Alice Harding, Trustee of record in Official Record 507, Page 906, a distance of 2517.39 feet (passing a railroad spike found at the centerline intersection of said State Route 134 and said Airborne Road at 48.29 feet) to a magnetic nail found at a north westerly corner of said 1100.621 acre tract, and on the westerly projection of the southerly right-of-way of Davids Drive as dedicated in the “Dedication Plat Davids Drive” of record in Plat Book 7 Page 70C;

Thence North 72° 01' 51" East, with the southerly projection and southerly right-of-way line of Davids Drive (100 feet wide), a distance of 184.96 feet (passing a 5/8 inch rebar found capped “Clinco” at 29.99 feet), to a 5/8 inch rebar found capped “Clinco” at a northwesterly corner of the original 84.791 acre tract conveyed to Community Improvement Corporation of Wilmington of record in Official Record 66, Page 559;  

Thence with the perimeter of said original 84.791 acre tract, the following courses and distances:

South 25° 12' 30" East, a distance of 83.04 feet to a 5/8 inch rebar found capped “Clinco”;

South 70° 58' 01" East, a distance of 144.91 feet to a 5/8 inch rebar found capped “Clinco”;

South 13° 43' 22" East, a distance of 129.25 feet to a 5/8 inch rebar found capped “Clinco”;

North 86° 28' 00" East, a distance of 343.77 feet to a 5/8 inch rebar found capped “Clinco”;

South 41° 01' 45" East, a distance of 1025.53 feet to an iron pin set;

Thence across said 1100.621 acre tract, the following courses and distances:

South 46° 37' 19" West, a distance of 109.25 feet to an iron pin set;

South 41° 19' 48" East, a distance of 1058.33 feet to an iron pin set on the northerly right-of-way line of said Airborne Road;

Thence with the northerly right-of-way line of said Airborne Road, the following courses and distances:

South 68° 51' 21" West, a distance of 1242.20 feet to a 1/2 inch rebar found in concrete;

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North 65° 11' 27" West, a distance of 48.64 feet to a 1/2 inch rebar found in concrete at the intersection of the northerly right-of-way line of said Airborne Road and the easterly right-of-way line of said State Route 134;

Thence South 19° 11' 59" East, with the westerly terminus of the “Dedication Plat Airborne Road & Extensions of Ruane Drive and Weil Way”, a distance of 133.19 feet to the POINT OF BEGINNING and containing 47.225 acres of land, more or less of which 1.733 acres is located in the right-of-way of State Route 134, approximately 1.244 acres is located in Virginia Military Survey 2694, approximately 43.583 acres is located in Virginia Military Survey 625 and approximately 2.398 acres is located in Virginia Military Survey 2027, 45.492 acres are located in the City of Wilmington and 1.733 acres are located in Union Township.

Iron pins set, where indicated, are iron pipes, thirteen sixteenths (13/16) inch inside diameter, thirty (30) inches long with a plastic plug placed in the top bearing the initials EMHT INC.

This description is based on existing records and an actual field survey performed in November 2009.

The bearings contained herein are based on the Ohio State Plane Coordinate System, South Zone, NAD83 (1995).  Said bearings originated from a field traverse which was tied (referenced) to said coordinate system by GPS observations and observations of selected NGS monuments AIRBORNE and AIRBORNE AZ MK.  The portion of the right-of-way line of Airborne Road, having a bearing of North 38° 08' 03" East, is designated the "basis of bearing" for this survey.

TRACT 2:

Situated in the State of Ohio, County of Clinton, Township of Union, lying in Virginia Military Surveys 1162, 1170 and 2027, and being part of that original 784.989 acre tract conveyed as Tract 2 to Wilmington Air Park LLC by deed of record in Official Record 516, Page 610 (all references are to the records of the Recorder’s Office, Clinton County, Ohio) and being more particularly described as follows:

BEGINNING at a 1/2 inch rebar found in concrete at the a northwesterly corner of said original 784.989 acre tract in the easterly line of Virginia Military Survey Number 1162 and in the westerly line of Virginia Military Survey Number 1170, in the southerly line of the original 92.076 acre tract conveyed to Great Oaks Joint Vocational School District, Ohio of record in Deed Book 239, Page 482 and in the northerly right-of-way line of Airport Road (width varies);

Thence North 51° 58' 29" East, partially with the northerly right-of-way line of said Airport Road, with the southerly line of said original 92.076 acre tract, with the southerly line of the original 50.00 acre tract conveyed to The Board of Education of Great Oaks Institute of Technology and 

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Career Development of record in Official Record 145, Page 647, with the southerly line of that 0.387 acre tract conveyed as Parcel 26 WDV to the City of Wilmington of record in Official Record 701, Page 1 and with the southerly line of the original 7.707 acre tract conveyed to Wilmington Air Park LLC of record in Official Record 515, Page 662 a distance of 1875.30 feet, (passing a magnetic nail found at 459.51 feet) to a magnetic nail set in the centerline of State Route 73 (width varies) [Ohio Department of Transportation Plan CLI-73 (11.81-13.42)] at the northerly corner of said original 784.989 acre tract and on the westerly line of that 2.013 acre tract conveyed as Parcel 22E to the State of Ohio by deed of record in Official Record 666, Page 558;

Thence with a curve to the right having a central angle of 16° 36' 48", a radius of 3819.72 feet, an arc length of 1107.55 feet, and a chord that bears South 29° 16' 12" East, a chord distance of 1103.67 feet, along the centerline of said State Route 73, with the westerly line of said Parcel 22E and with the westerly line of that 6.036 acre tract conveyed as Parcel 22WL to the State of Ohio by deed of record in Official Record 666, Page 558, (passing the centerline of Airborne Road [Ohio Department of Transportation Plan CLI-73 (12.03)] at an arc length of 51.55 feet, referenced by a 1 inch solid iron pipe found in a monument box, being South 47° 02’ 59” West a distance of 0.58 feet) to a magnetic nail set;

Thence across said original 784.989 acre tract, the following courses and distances:

South 25° 35' 02" West, a distance of 1303.28 feet to an iron pin set;

South 47° 07' 29" West, a distance of 702.68 feet to an iron pin set;

South 47° 07' 28" West, a distance of 1181.16 feet to an iron pin set;

South 26° 41' 52" West, a distance of 348.20 feet to an iron pin set;

South 15° 22' 12" West, a distance of 544.70 feet to an iron pin set;

South 31° 41' 51" West, a distance of 711.99 feet to an iron pin set;

South 37° 27' 01" West, a distance of 614.23 feet to an iron pin set;

South 39° 29' 40" West, a distance of 257.45 feet to a magnetic nail set;

South 53° 12' 36" East, a distance of 51.19 feet to a railroad spike found at the northeasterly corner of that 72.25 acre tract conveyed as Tract 71 to Wilmington College by deed of record in Deed Book 184, Page 306;

Thence South 47° 10' 33" West, with the northerly line of said 72.25 acre tract, a distance of 2580.78 feet to a 5/8 inch rebar found capped “Clinco” found at the northwesterly corner of said 72.25 acre tract in the easterly line of Virginia Military Survey Number 2027 and in the westerly line of Virginia Military Survey Number 1162;

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Thence across said original 784.989 acre tract, the following courses and distances:

North 40° 45' 33" West, with the easterly line of Virginia Military Survey Number 2027 and with the westerly line of Virginia Military Survey Number 1162, a distance of 31.89 feet to an iron pin set;

South 38° 10' 31" West, a distance of 1484.61 feet to an iron pin set;

South 40° 53' 07" East, a distance of 648.98 feet to an iron pin set;

South 46° 47' 14" West, a distance of 232.26 feet to an iron pin set;

South 32° 10' 47" East, a distance of 209.16 feet to a railroad spike set in the centerline of Jenkins Road (Township Road 261) (40 feet wide), being the northerly line of Virginia Military Survey Number 2386 and being the southerly line of Virginia Military Survey Number 2027 and being the northerly line of that 300 acre tract conveyed to David W. Fife and James G. Fife by deed of record in Official Record 677, Page 235;

Thence South 50° 24' 05" West, with the centerline of said Jenkins Road, the northerly line of Virginia Military Survey Number 2386, the southerly line of Virginia Military Survey Number 2027 and with the northerly line of said 300 acre tract, a distance of 1110.95 feet to a magnetic nail found at the northwesterly corner of said 300 acre tract and at the northeasterly corner of that 150 acre tract conveyed as Parcel One to Wilmington Air Park, Inc. by deed of record in Official Record 79, Page 218,

Thence South 50° 29' 14" West, partially with the centerline of said Jenkins Road, the northerly line of Virginia Military Survey Number 2386, the southerly line of Virginia Military Survey Number 2027 and with the northerly line of said 150 acre tract, a distance of 3009.80 feet (passing a 1/2 inch rebar capped “Clinco” found at 2969.90 feet) to a 5/8 inch rebar capped “Clinco” found at the southeasterly corner of that 107.305 acre tract conveyed to Suburban Investments Co. by deed of record in Official Record 191, Page 337;

Thence North 41° 09' 10" West, with the easterly line of said 107.305 acre tract, a distance of 674.51 feet to an iron pin set;

Thence across said Original 784.989 acre tract, the following courses and distances:

North 38° 07' 29" East, a distance of 1243.38 feet to an iron pin set;

North 41° 34' 04" West, a distance of 578.26 feet to an iron pin set;

North 38° 36' 07" East, a distance of 2458.81 feet to an iron pin set on the southerly right-of-way line of Airborne Road (width varies) as dedicated in the “Dedication Plat Airborne Road & Extensions of Ruane Drive and Weil Way” of record in Plat Book 7, Pages 50A-51B;

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Thence with the southerly right-of-way line of said Airborne Road, the following courses and distances:

With a curve to the left having a central angle of 06° 48' 03", a radius of 1250.00 feet, an arc length of 148.37 feet and a chord that bears North 41° 32' 04" East, a chord distance of 148.29 feet to a 1/2 inch rebar found in concrete at the point of tangency;

North 38° 08' 03" East, a distance of 1785.93 feet to a 1/2 inch rebar found in concrete;

North 39° 00' 07" East, a distance of 660.08 feet to a 1/2 inch rebar found in concrete;

North 38° 08' 03" East, a distance of 2098.06 feet to a 1/2 inch rebar found in concrete;

North 37° 15' 58" East, a distance of 660.08 feet to a 1/2 inch rebar found in concrete;

North 38° 08' 03" East, a distance of 576.77 feet to a 1/2 inch rebar found in concrete;

North 39° 00' 07" East, a distance of 660.08 feet to a 1/2 inch rebar found in concrete;

North 38° 08' 03" East, a distance of 2043.92 feet to a 1/2 inch rebar found in concrete at a point of curvature;

With said curve to the right, having a central angle of 13° 42' 14", a radius of 1958.82 feet, an arc length of 468.51 feet and a chord that bears North 44° 59' 10" East, a chord distance of 467.39 feet (passing a 1/2 inch rebar found in concrete at an arc length of 40.22 feet, being on the easterly line of Virginia Military Survey 1162 and being on the westerly line of Virginia Military Survey 1170) to a 1/2 inch rebar found in concrete at a point of tangency;

North 51° 50' 17" East, a distance of 142.79 feet to a 1/2 inch rebar found in concrete;

North 38° 09' 43" West, a distance of 11.56 feet to an iron pin set at the easterly terminus of said Airborne Road, in the southerly right-of-way line of said Airport Road;

Thence South 52° 40' 03" West, with the easterly terminus of said Airborne Road, a distance of 570.99 feet to a magnetic nail set at the southeasterly corner of that 1100.621 acre tract conveyed as Tract 1 to Wilmington Air Park LLC by deed of record in Official Record 516, Page 610, in the easterly line of Virginia Military Survey 1162 and in the westerly line of Virginia Military Survey Number 1170;

Thence North 40° 57' 32" West, with the easterly line of said 1100.621 acre tract, with the easterly line of said original 92.076 acre tract, with the easterly line of Virginia Military Survey 1162 and with the westerly line of Virginia Military Survey Number 1170, a distance of 93.30 feet (passing a magnetic nail set at 40.05 feet on the centerline of said Airport Road) to the POINT OF BEGINNING and containing 481.033 acres of land, more or less of which 7.591 acres is located in the right-of-way of Airport Road, State Route 73 and Jenkins Road, approximately 58.279 acres 

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is located in Virginia Military Survey Number 1170, approximately 222.766 acres is located in Virginia Military Survey Number 1162 and approximately 199.988 acres is located in Virginia Military Survey Number 2027.

Iron pins set, where indicated, are iron pipes, thirteen sixteenths (13/16) inch inside diameter, thirty (30) inches long with a plastic plug placed in the top bearing the initials EMHT INC.

This description is based on existing records and an actual field survey performed in November 2009.

The bearings contained herein are based on the Ohio State Plane Coordinate System, South Zone, NAD83 (1995).  Said bearings originated from a field traverse which was tied (referenced) to said coordinate system by GPS observations and observations of selected NGS monuments AIRBORNE and AIRBORNE AZ MK.  The portion of the right-of-way line of Airborne Road, having a bearing of North 38° 08' 03" East, is designated the "basis of bearing" for this survey.

Note: The above described tract saves and excepts a 0.980 acre tract   conveyed as parcel 23WDV to The City of Wilmington of record in Official Record 673, Page 226, and of record in Survey Record 36, Pages 86-109, further described by the legal description prepared by Kevin L. Stacy, Professional Surveyor 7531, and described as follows:

Situated in Union Township, Clinton County, State of Ohio, and being part of the Military Survey 1170, being conveyed to Wilmington Air Park LLC by instrument of record in Official Record 516 Page 610 and is bounded and described as follows;

Commencing for reference at the intersection of Airborne Road and existing S .R. 73;

Thence South 52° 01’ 17” West 75.37 feet to a point in the southerly right-of-way line of said existing S.R. 73; 

Thence South 43° 00’ 06” East 38.42 feet to a point in the existing southerly right-of-way line of said S.R. 73 and in the existing southerly right-of-way line of Airborne Road, said point also being at 38.28 feet right of centerline Station 42+08.76 (proposed Airborne Road), said point also being the TRUE POINT OF BEGINNING of the parcel herein described;

Thence South 43° 00’ 06” East, 8.31 feet along the existing southerly right-of-way line of Township Road 153 to a point at 46.56 feet right of centerline Station 42+09.49 (proposed Airborne Road); 

Thence South 35° 40’ 13” East, 58.49 feet along the existing southerly right-of-way line of Township Road 153 to an iron pin set at 105.00 feet right of centerline Station 42+07.13 (proposed Airborne Road);  

Thence South 52° 53’ 35” West, 657.21 feet to an iron pin set at 95.00 feet right of centerline Station 35+50.00 (proposed Airborne Road);

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Thence South 80° 49’ 27” West, 112.89 feet to an iron pin set on the existing southerly right-of-way line of Airborne Road at 40.61 feet right of centerline Station 34+51.07 (proposed Airborne Road);

Thence North 51° 50’ 42” East, 757.69 feet along the existing southerly right-of-way line of Airborne Road to the TRUE POINT OF BEGINNING.

The above described area contains 0.980 acres of land, more or less, of which the present road occupies 0.000 acres of land, more or less.  

This description was prepared under the direct supervision and reviewed on June 5, 2005 by Kevin L. Stacy, Professional Surveyor Number 7531.

This description is based on a survey made under the direction and supervision of Paul Feie Professional Surveyor Number 6723 in 2004 and 2005.

The Grantor claims title by instrument of record in Official Record 73, Page 687, Recorder’s Office, Clinton County, Ohio.

The basis of bearings in this description are based upon the Ohio State Plane Coordinate System, Ohio South Zone NAD 83 (1995) utilizing NGS monuments stamped “GPS 19 2000”, “GPS 18 2000” and “GPS 22 2000”.

The stations referred to herein are from the centerline of Right-of-Way of Airborne Road as found on the Ohio Department of Transportation Right-of-Way Centerline Plat CLI-73-12.03 to be recorded in the Clinton County Recorder’s Office.

Monuments referred to as iron pins set are 3/4 inch diameter, 30 inch long iron bars with a 2 1/2 inch diameter aluminum cap marked ‘ODOT R/W, District 8’.

TRACT 3:

SITUATE IN UNION TOWNSHIP, CLINTON COUNTY, OHIO VIRGINIA MILITARY SURVEY NUMBER 1162, AND BEING PART OF THE REMAINING PART OF A 10.942 ACRE TRACT AS CONVEYED BY DEED TO WILMINGTON AIR PARK, INC. AS RECORDED IN VOLUME 64, PAGE 154 OF THE CLINTON COUNTY OFFICIAL RECORDS AND BEING MORE PARTICULARLY DESCRIBED, AS FOLLOWS:  COMMENCING FOR REFERENCE AT A RAILROAD SPIKE FOUND AT THE INTERSECTION OF THE CENTERLINES OF OLD STATE ROUTE 73 AND AIRPORT ROAD; THENCE WITH THE CENTERLINE OF OLD STATE ROUTE 73, S 48°25'58" E 235.20' TO A RAILROAD SPIKE FOUND AT THE SOUTHEASTERLY CORNER OF AIRLINE PROFESSIONAL ASSOCIATION'S, TEAMSTER LOCAL 1224, 1.000 ACRE TRACT (OFFICIAL RECORD 328, PAGE 711) AND BEING THE TRUE POINT OF 

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BEGINNING FOR THIS TRACT HEREIN DESCRIBED; THENCE WITH THE PROLONGATION OF SAID CENTERLINE S 48°25'58" E 50.03' TO A RAILROAD SPIKE FOUND AT THE CORNER OF EWE WAREHOUSE INVESTMENTS V, LTD.'S 6.252 ACRE TRACT, (OFFICIAL RECORD 312, PAGE 135); THENCE WITH THE LINE OF SAID 6.252 ACRE TRACT S 43°22'44" W 360.46' TO A 5/8" IRON PIN FOUND IN THE LINE OF GREAT OAKS JOINT VOCATIONAL SCHOOL DISTRICT'S REMAINING PART 262.282 ACRE TRACT. (DEED BOOK 239, PAGE 482); THENCE WITH SAID SCHOOL DISTRICT'S LINE N 48°21'44" W 279.27' TO A 1" O.D. PIPE FOUND; THENCE CONTINUING WITH SCHOOL DISTRICT'S LINE N 48°02'14" E 151.88' TO A 5/8" IRON PIN FOUND AT THE CORNER OF SAID AIRLINE PROFESSIONAL ASSOCIATION'S 1.000 ACRE TRACT; THENCE WITH THE LINE OF SAID 1.000 ACRE TRACT S 48°26'31" E 217.06' TO A 5/8" IRON PIN FOUND; THENCE CONTINUING WITH THE LINE OF SAID 1.000 ACRE TRACT N 43°20'16" E 209.09' TO THE TRUE POINT OF BEGINNING CONTAINING 1.187 ACRES OF LAND, MORE OR LESS.

THIS SURVEY IS BASED UPON A FIELD SURVEY CONDUCTED UNDER THE DIRECTION OF R. DOUGLAS SUTTON, OHIO PROFESSIONAL SURVEYOR NO. 7124 BY CLINCO & SUTTON SURVEYORS IN SEPTEMBER, 2001.  IRON PINS REFERRED TO AS SET ARE 5/8" DIAMETER STEEL AND 30" IN LENGTH WITH A YELLOW CAP STAMPED "CLINCO & SUTTON".  BEARINGS ARE BASED UPON AN ASSUMED AZIMUTH AND ARE FOR ANGULAR MEASUREMENT PURPOSES ONLY.  RECORDED IN VOLUME 33, PLAT NO. 203, OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION.

TRACT 4:

SITUATE IN UNION TOWNSHIP, CLINTON COUNTY, OHIO, VIRGINIA MILITARY SURVEY NUMBER 1162, AND BEING PART OF THE REMAINING PART OF A 3.367 ACRE TRACT AND PART OF A 0.41 ACRE TRACT AS CONVEYED BY DEED TO WILMINGTON AIR PARK, INC. AS RECORDED IN VOLUME 64, PAGE 401 AND VOLUME 148, PAGE 65 OF THE CLINTON COUNTY OFFICIAL RECORDS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:  BEGINNING AT A MAG NAIL SET AT THE INTERSECTION OF THE NORTHWESTERLY RIGHT OF WAY OF AIRBORNE ROAD AND THE CENTERLINE OF OLD STATE ROUTE 73; THENCE WITH THE CENTERLINE OF OLD STATE ROUTE 73, N 53°56'30" W 182.12' TO A MAG NAIL SET AT THE CORNER OF EWE WAREHOUSE INVESTMENTS V, LTD'S 7.243 ACRE TRACT (OFFICIAL RECORD 312, PAGE 140); THENCE WITH THE LINE OF SAID 7.243 ACRE TRACT N 34°58'16" E (PASSING A 5/8" IRON PIN FOUND AT 54.06') 120.22' TO A 5/8" IRON PIN FOUND; THENCE CONTINUING WITH THE LINE OF SAID 7.243 ACRE TRACT N 67°10'58" E 296.11' TO A 5/8" IRON PIN FOUND;

THENCE STILL WITH THE LINE OF SAID 7.243 ACRE TRACT S 55°30'32" E
42.71' TO A CONCRETE MONUMENT FOUND IN THE NORTHWESTERLY RIGHT OF WAY OF AIRBORNE ROAD; THENCE WITH SAID RIGHT OF WAY S 37°47'37" W 375.02' TO THE POINT OF BEGINNING CONTAINING 1.183 ACRES OF LAND, MORE OR LESS.

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THIS SURVEY IS BASED UPON A FIELD SURVEY CONDUCTED UNDER THE DIRECTION OF R. DOUGLAS SUTTON, OHIO PROFESSIONAL SURVEYOR NO. 7124 BY CLINCO & SUTTON SURVEYORS IN AUGUST, 2001.  IRON PINS REFERRED TO AS SET ARE 5/8" DIAMETER STEEL AND 30" IN LENGTH WITH A YELLOW CAP STAMPED "CLINCO & SUTTON".  BEARINGS ARE BASED UPON AN ASSUMED AZIMUTH AND ARE FOR ANGULAR MEASUREMENT PURPOSES ONLY.  RECORDED IN VOLUME 33, PLAT NO. 203, OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION.

TRACT 5:    INTENTIONALLY OMITTED AND NOTHING SUBSTITUTED THEREFOR 

TRACT 6:     INTENTIONALLY OMITTED AND NOTHING SUBSTITUTED THEREFOR 
 
TRACT 7:     INTENTIONALLY OMITTED AND NOTHING SUBSTITUTED THEREFOR 
 
TRACT 8:

SITUATE IN THE CITY OF WILMINGTON, COUNTY OF CLINTON AND STATE OF OHIO: BEING PT MS 1162 AND PART OF VMS NO. 2027, AND BEING 6.092 ACRES OF LAND OUT OF TRACT NO. 3 AS CONVEYED IN DEED BOOK 120, PAGE 83 IN THE RECORDER'S OFFICE OF CLINTON COUNTY, OHIO; AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:  BEGINNING FOR REFERENCE ONLY AT THE RAILROAD SPIKE IN THE INTERSECTION OF COUNTY ROAD 26 NORTH, COUNTY ROAD 26 EAST AND ABANDONED S.R. 73 WEST; THENCE WITH THE CENTER OF A 22.00 FOOT ACCESS EASEMENT S 48°13'35" W 1238.63 FEET TO A SPIKE; THENCE S 41°38'48" E 624.94 FEET TO A SPIKE; THENCE S 48°19'21" W 24.82 FEET TO A POINT; THENCE LEAVING SAID 22.00 FOOT ACCESS EASEMENT S 42°00'03" E 62.73 FEET TO AN IRON PIN, THE TRUE POINT OF BEGINNING, THENCE WITH THE NORTHEAST LINE WHICH ENCLOSES THE FUEL STORAGE AREA (1972) S 42°00'03" E 347.27 FEET TO AN IRON PIN, THENCE WITH THE SOUTHEAST LINE OF SAID FUEL STORAGE AREA (1972) S 48°19'15" W 764.87 FEET TO A FENCE CORNER POST; THENCE WITH THE SOUTHWEST LINE OF SAID FUEL STORAGE AREA (1972) N 41°40'29" W 347.53 FEET TO A FENCE CORNER POST; THENCE WITH THE NORTHWEST LINE OF SAID FUEL STORAGE AREA (1972) N 48°20'27" E 762.89 FEET TO SAID TRUE POINT OF BEGINNING, CONTAINING 6.092 ACRES OF LAND.

SURVEY VOLUME 27-108

TOGETHER WITH A NON-EXCLUSIVE ACCESS EASEMENT FOR THE BENEFIT OF TRACT 8, AS CREATED BY AN ACCESS EASEMENT FROM THE BOARD OF EDUCATION OF GREAT OAKS INSTITUTE OF TECHNOLOGY AND CAREER DEVELOPMENT,  FKA GREAT OAKS JOINT VOCATIONAL SCHOOL DISTRICT TO WILMINGTON AIR PARK, INC., FILED IN DEED VOLUME 145, PAGE 662, RECORDER'S 

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OFFICE, CLINTON COUNTY, OHIO, WHICH EASEMENT IS MORE SPECIFICALLY DESCRIBED AS FOLLOWS:

SITUATED IN UNION TOWNSHIP, CLINTON COUNTY, OHIO, AND BEING A PART OF M.S. #1162 .  BEGINNING AT A PIN AT THE SOUTHERLY CORNER OF THE 52.038 ACRE TRACT AS RECORDED IN VOLUME 24, PLAT NO. 252, OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION:  RUNNING THENCE, FROM SAID POINT OF BEGINNING, WITH THE LINES OF SAID 52.038 ACRE TRACT, ON THE FOLLOWING COURSES:  (1) N. 41° 59' 35" W., 570.29 FEET TO A PIPE; (2) N. 41° 38' 23" W., 75.00 FEET TO A POINT; THENCE, ON THE FOLLOWING COURSES:  (1) N. 48° 21' 37" E., 30.00 FEET TO A POINT; (2) S. 41° 38' 23" E., 74.91 FEET TO A POINT; (3) S. 41° 59' 35" E., 564.79 FEET TO A POINT; THENCE, WITH A LINE OF SAID 52.038 ACRE TRACT, S. 37° 47' 49" W., 30.48 FEET TO THE POINT OF BEGINNING.

TRACT 9:

SITUATE IN THE CITY OF WILMINGTON, CLINTON COUNTY, OHIO, AND BEING A PART OF MS NO. 1162 AND BOUNDED AND DESCRIBED AS FOLLOWS:  BEGINNING AT A 5/8" IRON PIN (FOUND) AT THE EASTERLY CORNER OF A 4.576 ACRE TRACT AS RECORDED IN VOLUME 13, PAGE 137 OF THE CLINTON COUNTY SURVEYORS RECORD: RUNNING THENCE, FROM SAID POINT OF BEGINNING, WITH THE NORTHEASTERLY LINE OF SAID 4.576 ACRE TRACT AND WITH THE NORTHEASTERLY TERMINUS OF RUANE DRIVE N 52°18'49" W (PASSING A NAIL (FOUND) AT 537.82 FEET) A DISTANCE OF 587.82 FEET TO A POINT; THENCE WITH THE LINES OF THE HEREIN GRANTOR'S LANDS, ON THE FOLLOWING COURSES:

1.  N 37°47'34" E 27.76 FEET TO A NAIL (FOUND);

2.  S 52°10'35" E 118.01 FEET TO A 5/8" IRON PIN (FOUND);

3.  N 40°40'15" E 400.37 FEET TO A 1/2" IRON PIPE (FOUND);

4.  S 52°12'13" E 449.65 FEET TO A 1/2" IRON PIN (SET);

THENCE, BY A NEW DIVISION LINE S 37°47'06" W 426.44 FEET TO THE POINT
OF BEGINNING, CONTAINING FOUR AND FIVE HUNDRED EIGHTY-SIX THOUSANDTHS (4.586) ACRES.

THIS DESCRIPTION IS THE RESULT OF A NEW SURVEY MADE UNDER THE
DIRECTION OF RICHARD D. ROLL, REGISTERED SURVEYOR NO. 4957, BY CLINCO ENGINEERS & SURVEYORS, WILMINGTON, OHIO, IN MAY, 1984, AS RECORDED IN VOLUME 17, PLAT NO. 246 OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION.  THE BEARINGS IN THIS DESCRIPTION WERE DERIVED FROM THE SURVEY OF THE AFORESAID 4.576 ACRE TRACT.

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TRACT 10:

SITUATE IN THE CITY OF WILMINGTON, CLINTON COUNTY, OHIO, AND BEING A PART OF MS NO. 1162 AND MS NO. 2027 AND BOUNDED AND DESCRIBED AS FOLLOWS: COMMENCING AT A 3/4" IRON PIPE (FOUND) AT THE NORTHERLY CORNER OF A 6.092 ACRE TRACT AS CONVEYED TO AVIATION FUEL, INC. IN VOLUME 285, PAGE 339 OF THE CLINTON COUNTY, OHIO DEED RECORDS, SAID PIPE BEING AT A CORNER OF A 195.568 ACRE TRACT AS RECORDED IN VOLUME 24, PLAT NO. 12 OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION AND AT A CORNER OF A 52.038 ACRE TRACT AS RECORDED IN VOLUME 24, PLAT NO. 254 OF SAID RECORD OF LAND DIVISION; THENCE, WITH A LINE OF SAID 195.568 ACRE TRACT AND SAID 52.038 ACRE TRACT, N 41°38'23" W 75.00 FEET TO A POINT; THENCE S 48°08'00" W 542.30 FEET TO A 1/2" IRON PIN (SET) AT THE POINT OF BEGINNING FOR THE HEREIN DESCRIBED TRACT:  RUNNING THENCE, FROM SAID POINT OF BEGINNING, BY NEW DIVISION LINES, ON THE FOLLOWING COURSES:

1.  S 48°37'45" W 561.48 FEET TO A 1/2" IRON PIN (SET);

2.  N 41°22' 15" W 388.00 FEET TO A 1/2" IRON PIN (SET);

3.  N 48°37'45" E 561.48 FEET TO A 1/2" IRON PIN (SET);

4.  S 41°22'15" E 388.00 FEET TO THE POINT OF BEGINNING, CONTAINING
FIVE AND ONE THOUSANDTH (5.001) ACRES.

ALSO, A NON-EXCLUSIVE EASEMENT AND RIGHT-OF-WAY, FOR ACCESS PURPOSES, OVER THE FOLLOWING DESCRIBED TRACT:  BEGINNING AT THE IRON PIN AT THE EASTERLY CORNER OF THE ABOVE DESCRIBED 5.001 ACRE TRACT, RUNNING THENCE, FROM SAID POINT OF BEGINNING, N 48°08'00" E 542.30 FEET TO A POINT; THENCE, WITH A LINE OF THE AFORESAID 52.038 ACRE TRACT, S 41°38'23" E 75.00 FEET TO A PIPE; THENCE, WITH A LINE OF THE AFORESAID 6.092 ACRE TRACT, S 48°20'55" W 762.89 FEET TO A POINT; THENCE, WITH A LINE OF THE AFORESAID 5.001 ACRE TRACT, N 48°37'45" E 220.63 FEET TO THE POINT OF BEGINNING.

TRACT 11:

SITUATE IN THE STATE OF OHIO, COUNTY OF CLINTON, CITY OF WILMINGTON, AND BEING PART OF VIRGINIA MILITARY SURVEY NO. 1162, AND BEING 0.392 ACRES OF LAND OUT OF TRACT NO. 41, AS CONVEYED TO THE UNITED STATES OF AMERICA IN DEED BOOK 165, PAGE 645, RECORDER'S OFFICE, CLINTON COUNTY, OHIO, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

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BEGINNING FOR REFERENCE ONLY AT A CONCRETE MONUMENT BEING THE NORTHEASTERLY CORNER OF SAID TRACT NO. 41; THENCE WITH THE NORTHEAST LINE OF SAID TRACT NO. 41 AND A COMMON LINE OF VIRGINIA MILITARY SURVEY NO. 1162 AND VIRGINIA MILITARY SURVEY NO. 1170, NORTH 41°13'04" WEST 129.66 FEET TO A SPIKE; THENCE WITH THE CENTERLINE OF COUNTY ROAD 26 SOUTH, SOUTH 51°30'11" WEST 1654.33 FEET TO A SPIKE; THENCE LEAVING THE CENTERLINE OF SAID COUNTY ROAD 26, NORTH 52°08'41" WEST 264.77 FEET TO A SPIKE, THE TRUE POINT OF BEGINNING;

THENCE WITH THE SOUTHEASTERLY LINE OF THE HEREIN DESCRIBED TRACT SOUTH 37°45'12" WEST 159.87 FEET TO AN IRON PIN; THENCE NORTH 52°08'26" WEST 106.84 FEET TO A SPIKE; THENCE NORTH 37°46'03" EAST 159.87 FEET TO A SPIKE; THENCE SOUTH 52°08'41" EAST 106.80 FEET TO THE SAID TRUE POINT OF BEGINNING, CONTAINING 0.392 ACRES OF LAND.

TRACT 12:

SITUATE IN THE CITY OF WILMINGTON, CLINTON COUNTY, OHIO, VIRGINIA
MILITARY SURVEY NUMBER 1162 AND 1170, AND BEING PART OF THE REMAINING PART OF A 92.076 ACRE TRACT AS CONVEYED BY DEED TO THE GREAT OAKS JOINT VOCATIONAL SCHOOL DISTRICT AS RECORDED IN VOLUME 239, PAGE 482 OF THE CLINTON COUNTY DEED RECORDS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:  COMMENCING FOR REFERENCE AT A RAILROAD SPIKE FOUND IN THE CENTERLINE OF STATE ROUTE 73 AT THE NORTHERLY CORNER OF WILMINGTON AIR PARK L.L.C.'S 784.989 ACRE TRACT (OFFICIAL RECORD 516, PAGE 610) AS SURVEYED AND RECORDED IN VOLUME 33, PLAT NO. 203 OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION; THENCE WITH THE NORTHWESTERLY LINE OF SAID 784.989 ACRE TRACT AND BECOMING THE NORTHWESTERLY RIGHT OF WAY OF AIRPORT ROAD AND ALSO THE CORPORATION LINE OF THE CITY OF WILMINGTON S 51°38'32" W 1415.09' TO THE SOUTHERLY CORNER OF THE BOARD OF EDUCATION OF GREAT OAKS INSTITUTE OF TECHNOLOGY AND CAREER DEVELOPMENT'S 36.500 ACRE TRACT (OFFICIAL RECORD 145, PAGE 647); THENCE WITH THE WESTERLY LINE OF SAID 36.500 ACRE TRACT N 52°09'19" W 1731.57' TO AN IRON PIN SET MARKING THE TRUE POINT OF BEGINNING FOR THIS TRACT HEREIN DESCRIBED; THENCE BY NEW DIVISION LINE THROUGH THE GRANTOR'S LANDS S 37°59'53" W 457.90' TO AN IRON PIN SET IN THE LINE OF WILMINGTON AIR PARK L.L.C.'S 1105.622 ACRE TRACT (OFFICIAL RECORD 516, PAGE 610); THENCE WITH THE LINE OF SAID 1105.622 ACRE TRACT N 52°14'24" W 20.83' TO A 1/2" IRON PIN FOUND AT THE CORNER OF AVIATION FUEL INC.'S 4.586 ACRE TRACT (DEED BOOK 285, PAGE 337); THENCE WITH THE LINE OF SAID 4.586 ACRE TRACT N 52°09'59" W 449.42' TO THE CORNER OF SAID WILMINGTON AIR PARK L.L.C.'S 1105.622 ACRE TRACT, AN IRON PIN SET BEARS S 69°20'39" W 0.36'; THENCE WITH THE LINE OF SAID 1105.622 ACRE TRACT N 52°11'49" W 938.65' TO A 1/2" IRON PIN FOUND; THENCE CONTINUING WITH THE LINE OF SAID 1105.622 ACRE TRACT N 46°19'54" E 463.78' TO A 1/2" IRON PIN FOUND AT A 

A-18

CORNER TO CORPORATION LINE OF SAID WILMINGTON CITY AND ALSO BEING THE CORNER OF WILMINGTON COMMERCE PARK PARTNERSHIP'S 6.130 ACRE TRACT (OFFICIAL RECORD 350, PAGE 505); THENCE WITH SAID CORPORATION LINE, THE LINE OF SAID 6.130 ACRE TRACT AND BECOMING THE LINE OF SAID WILMINGTON COMMERCE PARK PARTNERSHIP'S 7.325 ACRE TRACT (OFFICIAL RECORD 219, PAGE 275), THE LINE OF WILMINGTON COMMERCE PARK PARTNERSHIP'S 8.697 ACRE TRACT (OFFICIAL RECORD 280, PAGE 89) AND THE LINE OF THE PREVIOUSLY STATED 36.500 ACRE TRACT S 52°09'19" E 1341.67' TO THE TRUE POINT OF BEGINNING CONTAINING 14.467 ACRES OF LAND.

NOTE:  THE 14.467 ACRE TRACT CONTAINS 9.643 ACRES IN VMS NUMBER 1162 AND 4.824 ACRES IN VMS NUMBER 1170.

IRON PINS REFERRED TO AS SET ARE 5/8" DIAMETER STEEL AND 30" IN LENGTH WITH A YELLOW CAP STAMPED "CLINCO & SUTTON".  BEARINGS ARE BASED UPON AN ASSUMED AZIMUTH AND ARE FOR ANGULAR MEASUREMENT PURPOSES ONLY. RECORDED IN VOLUME 34, PLAT NO. 177, OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION.
 
TRACT 13: 

SITUATE IN THE TOWNSHIP OF WASHINGTON, COUNTY OF CLINTON AND STATE OF  OHIO, BEING A PART OF VIRGINIA MILITARY SURVEY NO. 1457 AND BEING PART OF THE 10.405 ACRE TRACT AS CONVEYED TO KENNETH L. HAWK AND VIOLET I. HAWK (OFFICIAL RECORD VOLUME 587, PAGE 367) AND RECORDED IN VOLUME 34, PLAT NO. 251 OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISIONAND BEING AN AREA PRESENTLY LEASED BY ABX AIR, INC. FOR UTILITYPURPOSES, LEASE DATED FEBRUARY 24, 1989, AND BOUNDED AND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE CENTER OF U.S. ROUTE 68 MARKING THE
SOUTHWESTERLY CORNER OF THE 1.00 ACRE TRACT AS CONVEYED TO KENNETH L.AND VIOLET I. HAWK (OFFICIAL RECORD VOLUME 605, PAGE 231) AND RECORDED IN VOLUME 14, PLAT NO. 394, OF THE AFORESAID RECORD OF LAND DIVISION AND MARKING A SOUTHEASTERLY CORNER OF THE AFORESAID 10.405 ACRE TRACT:

RUNNING THENCE, FROM SAID POINT OF BEGINNING, WITH THE PRESENT LEASE LINES AND WITH THE CENTER OF U.S. ROUTE 68 ON THE FOLLOWING COURSES:

(1) S 60° 56' 58" W 129.73 FEET TO A NAIL (FOUND); (2) S 58° 39' 28"
W 69.88 FEET TO A POINT; THENCE WITH THE PRESENT LEASE LINES AND BY NEW DIVISION LINES ON THE FOLLOWING COURSES:  (1) N 29° 03' 02" W
(PASSING A 1/2" PIN (FOUND) AT 29.06 FEET) A DISTANCE OF 220.59 FEET
TO A 1/2" PIN (FOUND); (2) N 60° 56' 58" E 199.55 FEET TO A PIN

A-19

(FOUND) IN A TREE MARKING THE NORTHWESTERLY CORNER OF THE AFORESAID 1.000 ACRE TRACT; THENCE WITH A PRESENT LEASE LINE AND WITH THE WESTERLY LINE OF SAID 1.000 ACRE TRACT S 29° 03' 02" E (PASSING A1/2" PIN (FOUND) AT 190.10 FEET) A DISTANCE OF 217.80 FEET TO THE POINT OF BEGINNING, CONTAINING ONE (1.000) ACRE, MORE OR LESS.

 THIS DESCRIPTION IS THE RESULT OF A NEW SURVEY MADE UNDER THE
DIRECTION OF STEVEN D. WEBB, REGISTERED SURVEYOR NO. 7250, BY A.S.A.P.  SURVEYS, SABINA, OHIO, IN MAY, 2005, AND RECORDED IN VOLUME 35, PLAT  NO. 117, OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION.  THE BEARINGS IN THIS DESCRIPTION WERE BASED UPON THE 10.405 ACRE TRACT  (OFFICIAL RECORD VOLUME 587, PAGE 367) AND RECORDED IN VOLUME 34, PLAT NO. 251 OF THE CLINTON COUNTY ENGINEERS RECORD OF LAND DIVISION (S 60° 56' 58" W ON THE CENTER OF U.S. ROUTE 68).  ALL PINS (SET) ARE5/8" IRON PINS WITH PLASTIC CAPS STAMPED A.S.A.P. SUR. L.S. 7250.

TRACT 14:

SITUATED IN THE COUNTY OF CLINTON IN THE STATE OF OHIO AND IN THE TOWNSHIP OF UNION, AND BEING A PART OF SURVEY NO. 885 AND BOUNDED AND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE CENTER OF MELVIN ROAD (NO. 9) AT THE
EASTERLY CORNER OF ELIZABETH CLEMENT COLLINGHAM'S 30 ACRE TRACT AS RECORDED IN VOL. 7, PAGE 625 OF THE CLINTON SURVEYORS RECORD; THENCE WITH THE SOUTHEASTERLY LINE OF SAID 30 ACRE TRACT, S. 51° 10' W. 25 FEET TO THE REAL POINT OF BEGINNING FOR THE HEREIN DESCRIBED TRACT:

RUNNING THENCE FROM SAID REAL POINT OF BEGINNING, WITH THE
SOUTHEASTERLY LINE OF SAID 30 ACRE TRACT, S. 51° 10' W. 125 FEET TO A
POINT; THENCE ON THE FOLLOWING COURSES:  (1) N. 39° 36' 25" W. 125
FEET TO A POINT; (2) N. 51° 10' E. 125 FEET TO A POINT; (3) PARALLEL
TO MELVIN ROAD S. 39° 36' 25" E. 125 FEET TO THE REAL POINT OF
BEGINNING, CONTAINING .359 OF AN ACRE.  SURVEY RECORD VOL. 20, PAGE 84.

TRACT 15:

 
  Situated in the State of Ohio, County of Clinton, Township of Union, located in Virginia Military Survey Number 2027 being a part of that Original 784.989 acre tract conveyed as Tract 2 to Wilmington Air Park LLC of record in Official Record 516, Page 610 (all references refer to the records of the Recorder’s Office, Clinton County, Ohio), and being more particularly bounded and described as follows:

Beginning, for reference, at a magnetic nail, with no head, found at the centerline intersection of Township Road 261 (known as Jenkins Road to the West and known as McCoy Road to the East) (40 feet 

A-20

wide) and County Road 35 (Old State Route 73) at  a northerly corner of that 149.319 acre tract conveyed as Tract II to L.T. Land Development, LLC of record in Official Record 597, Page 441, the southeasterly corner of that 72.25 acre tract conveyed as tract 71 to Wilmington College of record in Deed Book 184, Page 306, a southerly corner of said original 784.989 acre tract and the northwesterly corner of that 5.03 acre tract conveyed to Glen William Ramseyer and Mary Alice Ramseyer of record in Deed Book 246, Page 282, being on the southerly line of Virginia Military Survey 1162 and being on the northerly line of Virginia Military Survey 2386;

Thence South 46° 56’ 14" West, a distance of 3310.76 feet to a magnetic nail found on the centerline of said Jenkins Road, on the southerly line of Virginia Military Survey 2027 and on the northerly line of Virginia Military Survey 2386, at a southwesterly corner of that 25.54 acre tract conveyed as Tract 74 to Wilmington College by deed of record in Deed Book 184, Page 306, and being on the northerly line of that 300 acre tract conveyed to David W. Fife and James G. Fife of record in Official Record 677, Page 235;

Thence South 49° 24’ 42” West, with the centerline of said Jenkins Road, the northerly line of said 300 acre tract, the southerly line of Virginia Military Survey 2027 and the northerly line of Virginia Military Survey 2386, a distance of 843.96 feet to the TRUE POINT OF BEGINNING;

Thence South 49° 24’ 42" West, with the centerline of said Jenkins Road, the northerly line of said 300 acre tract, the southerly line of Virginia Military Survey 2027 and the northerly line of Virginia Military Survey 2386, a distance of 110.70 feet to a point;

Thence across said Tract 2, the following courses and distances:

North 39° 01’ 32" West, a distance of 141.68 feet to a point;

North 50° 47’ 22" East, a distance of 108.26 feet to a point;

South 40° 00’ 51" East, a distance of 139.03 feet to the TRUE POINT OF BEGINNING and containing 0.353 acre, more or less.
 
The bearings contained herein are based on the Ohio State Plane Coordinate System, South Zone, NAD83 (1995).  Said bearings originated from a field traverse which was tied (referenced) to said coordinate system by GPS observations and observations of selected NGS monuments AIRBORNE and AIRBORNE AZ MK.  The portion of the right-of-way line of Airborne Road, having a bearing of North 38° 08' 03" East, is designated the "basis of bearing" for this survey.

 
Together with a non-exclusive access easement for the benefit of Tract 15, as created in the lease between Wilmington Air Park, LLC and Clinton County Port Authority, as evidenced in the Memorandum of Lease filed June 3, 2010, and recorded in O.R.V. 783, Page 327 Recorder’s Office Clinton County, Ohio, which easement is more specifically described as follows:
 
Situated in the State of Ohio, County of Clinton, Township of Union, located in Virginia Military Survey Number 2027 being a part of that Original 784.989 acre tract conveyed as Tract 2 to Wilmington Air Park LLC of record in Official Record 516, Page 610 (all references refer to the records of the Recorder’s Office, Clinton County, Ohio), and being more particularly bounded and described as follows:

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Beginning, for reference, at a magnetic nail, with no head, found at the centerline intersection of Township Road 261 (known as Jenkins Road to the West and known as McCoy Road to the East) (40 feet wide) and County Road 35 (Old State Route 73) at  a northerly corner of that 149.319 acre tract conveyed as Tract II to L.T. Land Development, LLC of record in Official Record 597, Page 441, the southeasterly corner of that 72.25 acre tract conveyed as tract 71 to Wilmington College of record in Deed Book 184, Page 306, a southerly corner of said original 784.989 acre tract and the northwesterly corner of that 5.03 acre tract conveyed to Glen William Ramseyer and Mary Alice Ramseyer of record in Deed Book 246, Page 282, being on the southerly line of Virginia Military Survey 1162 and being on the northerly line of Virginia Military Survey 2386;

Thence South 46° 56’ 14" West, a distance of 3310.76 feet to a magnetic nail found on the centerline of said Jenkins Road, on the southerly line of Virginia Military Survey 2027 and on the northerly line of Virginia Military Survey 2386, at a southwesterly corner of that 25.54 acre tract conveyed as Tract 74 to Wilmington College by deed of record in Deed Book 184, Page 306, and being on the northerly line of that 300 acre tract conveyed to David W. Fife and James G. Fife of record in Official Record 677, Page 235;

Thence South 49° 24’ 42” West, with the centerline of said Jenkins Road, the northerly line of said 300 acre tract, the southerly line of Virginia Military Survey 2027 and the northerly line of Virginia Military Survey 2386, a distance of 790.66 feet to the TRUE POINT OF BEGINNING;

Thence South 49° 24’ 42" West, with the centerline of said Jenkins Road, the northerly line of said 300 acre tract, the southerly line of Virginia Military Survey 2027 and the northerly line of Virginia Military Survey 2386, a distance of 53.30 feet to a point;

Thence across said Tract 2, the following courses and distances:

North 40° 00’ 51” West, a distance of 139.03 feet to a point;

South 50° 47’ 22” West, a distance of 108.26 feet to a point;

South 39° 01’ 32” East, a distance of 141.68 feet to a point on the centerline of said Jenkins Road, the northerly line of said 300 acre tract, the southerly line of Virginia Military Survey 2027 and the northerly line of Virginia Military Survey 2386;

Thence South 49° 24’ 42" West, with said centerline, said northerly line of said 300 acre tract, said southerly line of Virginia Military Survey 2027 and said northerly line of Virginia Military Survey 2386, a distance of 40.57 feet to a point;

Thence across said Tract 2, the following courses and distances:

North 40° 35’ 18" West, a distance of 201.48 feet to a point;

North 49° 24’ 42" East, a distance of 204.58 feet to a point;

South 40° 35’ 18" East, a distance of 201.48 feet to the TRUE POINT OF BEGINNING and containing 0.594 acre, more or less.
 
The bearings contained herein are based on the Ohio State Plane Coordinate System, South Zone, NAD83 (1995).  Said bearings originated from a field traverse which was tied (referenced) to said coordinate 

A-22

system by GPS observations and observations of selected NGS monuments AIRBORNE and AIRBORNE AZ MK.  The portion of the right-of-way line of Airborne Road, having a bearing of North 38° 08' 03" East, is designated the "basis of bearing" for this survey.

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A-24

A-25

A-26

A-27

EXHIBIT B

The Premises

	
		
	Building Number
	Leased Space

	224 (Fitness Facility)
	All

	1003 (Hangar)
	All

	1004 (Hangar)
	All

	1005 (Hangar)
	All

	1010 (Aircraft Parts)
	All

	2061 (Administration Building)
	All second floor areas and that portion of first floor housing the flight simulators, flight training offices and flight training classrooms (exclusive of what is commonly known as the “DHL training room”)

	2062 (Line Services)
	All

	2065 (Surplus Sales)
	All

	2066 (Base Shops)
	All

	2067 (Control Tower)
	All

	1025 (Air Park Services)
	All

	1025A (Air Park Services)
	All

	1026 (Air Park Services)
	All

	1026A (Air Park Services)
	All

	2090 (Storage Building)
	All

	2091 (Storage Building)
	All

EXHIBIT C

Illustration of Fuel Tanks

EXHIBIT D

Location of Tenant’s Fiber Optics Systems

As of the Effective Date, the precise location(s) of Tenant’s Fiber Optic Systems in and at the Air Park have not been identified.  After the Effective Date, Landlord and Tenant shall work cooperatively (if and as reasonably practical to do so and without undue expense to either party) to develop an Exhibit D which illustrates and describes with reasonable precision the location(s) of Tenant’s Fiber Optic Systems in and at the Air Park.

EXHIBIT E

Approved Subleases

	
		
	Tenant Affiliate
	Portion of Premises Occupied

	 
	 

	ABX Air, Inc.
	Buildings 224, 2061, 2067, 2065 (partial) and 2091

	 
	 

	LGSTX Services, Inc.
	Buildings 1025, 1025A, 1026, 1026A, 2062, and 2065 (partial)

	 
	 

	ABX Cargo Services, Inc.
	Building 2065 (partial)

	 
	 

	ABX Material Services, Inc.
	Building 2065 (partial)

	 
	 

	Airborne Maintenance and Engineering Services, Inc.
	Buildings 1003, 1004, 1005, 1010, and 2066

	 
	 

	Capital Cargo International Airlines, Inc.
	Building 2090

	 
	 

15262591 V.5Ex1037LoanAgmtCh166

Exhibit 10.37

Execution Copy
                                                    

LOAN AGREEMENT
between
DIRECTOR OF DEVELOPMENT SERVICES AGENCY
OF THE STATE OF OHIO
and
CLINTON COUNTY PORT AUTHORITY

                                                    

Dated as of 
December 1, 2012

                                                    

(OHIO ENTERPRISE BOND FUND PROGRAM)
(CHAPTER 166, OHIO REVISED CODE, LOAN PROGRAM)
(LOGISTICS & DISTRIBUTION INFRASTRUCTURE FUND PROGRAM)

1
BROUSE-#836255-V21-AMES_OEBF_166_LOAN_AGREEMENT.DOCBROUSE-#836255-V21-AMES_OEBF_166_LOAN_AGREEMENT.DOCBROUSE-#836255-V21-AMES_OEBF_166_LOAN_AGREEMENT.DOC{BROUSE-#836255-V21-AMES_OEBF_166_LOAN_AGREEMENT.DOC;1}

INDEX
(The Index is not a part of this Loan Agreement
and is only for convenience of reference).
Page
ARTICLE I    DEFINITIONS    2
		
	Section 1.1.
	Use of Defined Terms    2

		
	Section 1.2.
	Definitions    2

		
	Section 1.3.
	Certain Words and References    14

ARTICLE II    DETERMINATION AND REPRESENTATIONS    15
		
	Section 2.1.
	Determinations of the Director; Eligible Project    15

		
	Section 2.2.
	Representations and Warranties of the Borrower    15

ARTICLE III    COMMENCEMENT AND COMPLETION OF THE PROJECT    19
		
	Section 3.1.
	Provision of the Project    19

		
	Section 3.2.
	Deposits to the Project Funds; the Issuance Expense Account and the Capitalized Interest Account; Advances of the LDI Loan    19

		
	Section 3.3.
	Disbursement from the Project Funds    19

		
	Section 3.4
	Conditions to Disbursement of the State Assistance and the State Loan    20

		
	Section 3.5.
	Establishment of Completion Date    25

		
	Section 3.6.
	Borrower to Pay, or Cause Lessee to Pay, Costs in Event Project Funds Insufficient    26

		
	Section 3.7.
	Plans and Specifications; Inspections    26

		
	Section 3.8
	Remedies to be Pursued Against Contractors and Subcontractors and

Their Sureties    27
		
	Section 3.9.
	Investment of Project Funds, Primary Reserve Account or Collateral Proceeds Account    27

ARTICLE IV    STATE ASSISTANCE AND LOAN REPAYMENTS    28
		
	Section 4.1.
	State Assistance    28

		
	Section 4.2.
	State Loan    28

		
	Section 4.3.
	LDI Loan    28

		
	Section 4.4.
	Borrower Payments for State Assistance    29

		
	Section 4.5.
	Place of Payments    30

		
	Section 4.6.
	Primary Reserve Account    30

		
	Section 4.7.
	Extent of the Covenants of the Borrower; No Personal Liability or 

Pledge of General Credit    31
ARTICLE V    MAINTENANCE, TAXES AND INSURANCE    33
		
	Section 5.1.
	Maintenance and Modifications of Project    33

		
	Section 5.2
	Removal of Project    33

i

		
	Section 5.3.
	Taxes, Other Governmental Charges and Utility Charges    33

		
	Section 5.4.
	Insurance Required    34

		
	Section 5.5.
	Additional Provisions Respecting Insurance    34

		
	Section 5.6.
	Application of Net Proceeds of Insurance    35

		
	Section 5.7.
	Public Liability Insurance    35

		
	Section 5.8.
	Advances    35

		
	Section 5.9
	Environmental Matters    35

ARTICLE VI    DAMAGE, DESTRUCTION AND CONDEMNATION    38
		
	Section 6.1.
	Damage and Destruction    38

		
	Section 6.2.
	Eminent Domain    39

ARTICLE VII    SPECIAL COVENANTS AND AGREEMENTS    40
		
	Section 7.1.
	No Warranty of Condition or Suitability    40

		
	Section 7.2.
	Right of Access to the Project    40

		
	Section 7.3.
	[Intentionally Omitted]    40

		
	Section 7.4.
	Information Concerning Operations    40

		
	Section 7.5.
	Affirmative Covenants of the Borrower    40

		
	Section 7.6.
	Negative Covenants of the Borrower    44

		
	Section 7.7
	Ownership of ATSG    45

		
	Section 7.8.
	Mechanics' and Other Liens    45

		
	Section 7.9.
	Borrower Not to Adversely Affect Exclusion from Gross Income of Interest on Bonds    45

		
	Section 7.10
	Minority Hiring    46

		
	Section 7.11
	Equal Employment Opportunities    46

ARTICLE VIII    ASSIGNMENT, SELLING AND LEASING    47
		
	Section 8.1.
	Assignment, Sale or Lease by the Borrower    47

		
	Section 8.2.
	Pledge by the Director    47

ARTICLE IX    EVENTS OF DEFAULT AND REMEDIES    48
		
	Section 9.1.
	Events of Default    48

		
	Section 9.2.
	Remedies    49

		
	Section 9.3.
	No Remedy Exclusive    50

		
	Section 9.4.
	Agreement to Pay Attorneys’ Fees and Expenses    50

		
	Section 9.5.
	No Additional Waiver Implied by One Waiver    51

		
	Section 9.6.
	Waiver of Appraisement, Valuation, Etc.    51

ARTICLE X    REDEMPTION OF BONDS; PREPAYMENT OF LOANS    52
		
	Section 10.1
	Redemption of Bonds    52

		
	Section 10.2
	Optional Prepayment of State Loan, State Assistance and LDI Loan    52

		
	Section 10.3
	Mandatory Redemption in Event of a Determination of Taxability    53

		
	Section 10.4
	Mandatory Redemption    53

ii

		
	Section 10.5
	Mandatory Prepayment of State Loan, State Assistance and LDI Loan    53

		
	Section 10.6
	Option to Defease Bonds    54

ARTICLE XI    MISCELLANEOUS    55
		
	Section 11.1.
	Termination of Agreement    55

		
	Section 11.2.
	Amounts Remaining in Collateral Proceeds Account and Primary Reserve Account    55

		
	Section 11.3.
	Notices    55

		
	Section 11.4.
	Binding Effect    55

		
	Section 11.5.
	Extent of Covenants of the Director; No Personal Liability    55

		
	Section 11.6.
	Amendments, Changes and Modifications    56

		
	Section 11.7.
	Execution Counterparts    56

		
	Section 11.8.
	Severability    56

		
	Section 11.9.
	Captions    56

		
	Section 11.10.
	Governing Law    56

		
	Section 11.11
	Actions by Borrower    56

EXHIBIT A-1 – Form of State Loan Note    A1-1
EXHIBIT A-2 – Form of State Assistance Note    A2-1
EXHIBIT A-3 – Form of LDI Loan Note     A3-1
EXHIBIT B – Description of Project Facilities     B-1
EXHIBIT C – Disbursement Request Form and Cost Certification     C-1
EXHIBIT D – Terms and Conditions to Disbursement    D-1
EXHIBIT E – Adjacent Hangar Demolition    E-1
EXHIBIT F – Related Area Improvements    F-1
    
Schedule 1 – State Loan Payment Schedule
Schedule 2 – State Assistance Payment Schedule

iii

LOAN AGREEMENT
THIS LOAN AGREEMENT made and entered into as of December1, 2012 between the Director of Development Services Agency (the “Director”) of the State of Ohio (the “State”), acting on behalf of the State, and the Clinton County Port Authority, a body corporate and politic and a port authority duly organized and validly existing under the laws of the State (the “Borrower”), under the circumstances summarized in the following recitals (the capitalized terms used in the recitals being used therein as defined in Article I hereof):
A.    After making certain determinations pursuant to the Act, the Director is authorized, among other things, to lend money in the Facilities Establishment Fund to persons for the purpose of paying allowable costs of an Eligible Project.
B.    The Borrower has requested that the Director provide financial assistance for the Provision of the Project, the Adjacent Hangar Demolition and the Related Area Improvements by providing the State Assistance, the State Loan and the LDI Loan to the Borrower subject to and in accordance with the terms of this Loan Agreement.
C.    The Director has determined that the Project, the Adjacent Hangar Demolition and the Related Area Improvements constitute an Eligible Project and that the State Assistance, the State Loan and the LDI Loan to be provided pursuant to this Loan Agreement are appropriate under the Act and will be in furtherance and in implementation of the public policy set forth in the Act.
D.    The State Assistance and the State Loan and the LDI Loan to be provided pursuant to this Loan Agreement have been reviewed and approved by the Development Financing Advisory Council and the Controlling Board, pursuant to the Act.
E.    As a material inducement to Borrower and the Director entering into this Loan Agreement and to Borrower obtaining financial assistance for the Provision of the Project, the Adjacent Hangar Demolition and the Related Area Improvements, ATSG, Lessee, and Operating Company have executed the Guaranty Agreement pursuant to which ATSG, Lessee, and Operating Company have among other obligations set forth therein, agreed to guarantee all obligations of Borrower under this Loan Agreement.  
NOW, THEREFORE, in consideration of the premises and the representations and agreements hereinafter contained, the Director and the Borrower agree as follows (provided, that any obligation of the Director created by or arising out of this Loan Agreement shall not be a general debt on the part of the Director or the State but shall be payable solely out of the loan payments, bond proceeds, revenues and other income, charges and moneys realized from this Loan Agreement and provided, further, that any obligation, liability or duty of the Borrower created by or arising out of this Loan Agreement shall not be a general debt on the part of the Borrower but shall be payable solely out of the rentals, revenues and other income, charges and money realized from the use, lease, sale or other disposition of the Project, any insurance and condemnation awards as provided in the Lease, and any payments by ATSG, Lessee, or the Operating Company pursuant to the Guaranty Agreement):

ARTICLE I• 
DEFINITIONS
    
Section 1.1.    Use of Defined Terms.  In addition to the words and terms elsewhere defined in this Loan Agreement or other instruments, the words and terms set forth in Section 1.2 hereof shall have the meanings therein set forth unless the context or use expressly indicates a different meaning or intent.  Such definitions shall be equally applicable to both the singular and plural forms of any of the words and terms therein defined.    
Section 1.2.    Definitions.  As used herein:
“Act” means Chapter 166, Ohio Revised Code, as from time to time amended.
“Additional Payments” means the (i) Director’s Administrative Fee and the Trustee’s Annual Administrative Fee, which are payable in accordance with Section 4.4 of this Loan Agreement, (ii) amounts payable in accordance with Subsections 4.4(f) and (g) of this Loan Agreement and (iii) amounts payable in accordance with Section 7.5(b)(vi) of this Loan Agreement.  
“Adjacent Hangar Demolition” means the demolition, rehabilitation and restoration of the hangar located at the Air Park and commonly referred to as Building No. 207, in accordance with the Plans and Specifications and for purposes of the Provision of the Project, constituting an Eligible Project, as described and illustrated in Exhibit E attached hereto. 
“Affiliate” means, with respect to any Person, any other Person which (a) directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with such Person (“control” meaning the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise), (b) which beneficially owns or holds with power to vote ten percent (10%) or more of any class of voting stock or similar interest of such Person, (c) ten percent (10%) or more of the voting stock or similar interest of such other Person is beneficially held by such Person or (d) who is an executive officer, director or manager of such Person or such other Person.
“Agreement” or “Loan Agreement” means this Loan Agreement, as from time to time amended or supplemented in accordance with its terms.
“Air Park” means the Wilmington Air Park located in the City, within which the Project Site is located.
“Allowable Costs” means “allowable costs” of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements within the meaning of the Act.
“Application” means the Application of the Operating Company submitted to the Director requesting assistance under the Act.

2

“Assignment” means the Assignment of Landlord’s Interest in Rent and Other Rights dated as of the date hereof from the Borrower to the Director and the Consent and Acknowledgement of the Lessee, as the same may be amended or supplemented from time to time in accordance with its terms.
“ATSG” means Air Transport Services Group, Inc., a corporation organized under the laws of the State of Delaware and authorized to do business in the State, and any successor thereto.
“Authorized Borrower Representative” means the person(s) at the time designated to act on behalf of the Borrower by written certificate furnished to the Director and the Trustee, containing the specimen signature(s) of such person(s) and signed on behalf of the Borrower by the Executive Director of the Borrower.  Such certificate may designate an alternate or alternates.  In the event that all such incumbents become unavailable or unable to act, and the Borrower fails to designate at least one replacement within ten Business Days after notice to the Borrower from the Director of such unavailability or inability to act, the Director may appoint a successor.  
“Authorized Lessee Representative” means the person at the time designated to act on behalf of the Lessee by written certificate furnished to the Borrower, the Director and the Trustee containing the specimen signature of such person and signed on behalf of the Lessee by an authorized officer of the Lessee.  Such certificate may designate an alternate or alternates.  In the event that all such incumbents become unavailable or unable to act, and the Lessee fails to designate at least one replacement within ten Business Days after notice to the Lessee from the Director of such unavailability or inability to act, the Director may appoint a successor.
 “Bonds” means the State Economic Development Revenue Bonds (Ohio Enterprise Bond Fund), Series 2012-9 (Clinton County Port Authority – AMES Project) (Tax-Exempt Bonds) in the principal amount of $9,055,000 authorized by the General Bond Order and the Series Bond Order.
“Borrower” means the Clinton County Port Authority, a body corporate and politic and a port authority duly organized and validly existing under the laws of the State of Ohio.
“Business Day” means a day other than a Saturday, Sunday, scheduled federal holiday or other day on which commercial banks in Columbus, Ohio, or the City are authorized or required by law to close.
“Capitalized Interest Account” means the Series 2012-9 Capitalized Interest Account created in the Series Bond Order.
“City” means the City of Wilmington, Clinton County, Ohio, a municipality validly existing under the laws of the State.
“Closing Date” means date of the delivery of the Bonds to the original purchasers thereof.
“Code” means the Internal Revenue Code of 1986, as amended, including, when appropriate, the statutory predecessor of the Code, and all applicable regulations (whether proposed, temporary 

3

or final) under that Code and the statutory predecessor of the Code, and any official rulings and judicial determinations under the foregoing applicable to the Bonds.
“Collateral Proceeds Account” means the Series 2012-9 Collateral Proceeds Account, established pursuant to the General Bond Order and the Series Bond Order, in the Economic Development Bond Service Fund.
“Commitment” means the Loan Approval and Commitment dated June 19, 2012 between the Borrower and the Director and acknowledged and accepted by the Lessee.
“Completion Date” means such term as defined in the Lease.
“Construction Agent” means the Lessee, in its capacity as Construction Agent under Section 2.2 of Exhibit E to the Lease.
“Construction Hours Commitment” means 165,000 construction person hours expended in the Provision of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements.
“Construction Period” means Construction Period as defined in the Lease.
“Controlling Board” means the Controlling Board of the State.
“Cost Certification” means a certification of, or provided by the Construction Agent on behalf of, the Borrower, as of a specified date, setting forth in reasonable detail the costs incurred and, if appropriate, to be incurred, by the Borrower in completing the Provision of the Project, the Adjacent Hangar Demolition and the Related Area Improvements, including a detail by category of all Allowable Costs, in the form of Exhibit C. 
“Debt Service Account” means the Debt Service Account, established pursuant to the General Bond Order, in the Economic Development Bond Service Fund.
“Determination of Taxability” shall have the meaning set forth in the Series Bond Order.
“Development Financing Advisory Council” means the Development Financing Advisory Council of the State.
“Director” means the officer of the State, appointed pursuant to Section 121.03 of the Ohio Revised Code, who administers and is the executive head of the Development Services Agency, the officer who by law performs the functions of that office, and any individual acting on behalf of the Director of Development Services Agency pursuant to any delegation permitted by law.
“Director’s Administrative Fee” means, collectively, the Director’s State Assistance Administrative Fee and the Director’s State Loan Administrative Fee.  The Director’s Administrative Fee shall be paid by the Borrower until all amounts due and owing on the Notes are paid in full.
 “Director’s State Assistance Administrative Fee” means the monthly administrative fee paid by the Borrower to the Director pursuant to this Agreement, commencing on November 15, 

4

2015, which amount shall be 1/12th of an amount calculated at a rate equal to 0.125% of the then-outstanding principal amount of the Bonds.
“Director’s State Loan Administrative Fee” means the administrative fee paid by the Borrower to the Director pursuant to this Agreement, on each May 15 and November 15, commencing on May 15, 2016, which amount shall be 1/2 of an amount calculated at a rate equal to 0.25% of the then-outstanding principal amount of the State Loan Amount.
“Disbursement Date” means the date the proceeds of the State Assistance and the State Loan are disbursed by the Director to the Trustee for the account of the Project Fund pursuant to Section 3.3 and 3.4 hereof.
“Economic Development Bond Service Fund” means the Economic Development Bond Service Fund created by Section 166.08(S) of the Ohio Revised Code.
“Eligible Investments” means Eligible Investments as defined in the Trust Agreement.
“Eligible Project” means an “eligible project” within the meaning of the Act and, with respect to the State Loan, the State Assistance and the LDI Loan, means the Project, the Adjacent Hangar Demolition and the Related Area Improvements.
“Environment” means soil, land surface or subsurface strata, surface waters (including navigable waters and ocean waters), groundwater, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life, and any other environmental medium or natural resource.
“Environmental Complaint” has the meaning set forth in Section 5.9(c) hereof.
“Environmental Laws” means any applicable federal, state, local, municipal,  foreign, international, multinational or other applicable constitutions, laws, ordinances, principles of common law, regulations, statutes or  treaties designed to minimize, prevent, punish or remedy the consequences of actions that damage or threaten the Environment or public health and safety.
“Environmental Report” means, collectively, that certain Phase I Environmental Site Assessment, Future Hangar Wilmington Airpark, dated September 24, 2012, prepared by URS and all reports referred to and summarized therein and that certain Limited Phase II Environmental Site Investigation, Wilmington Air Park, dated November 30, 2012, prepared by URS and all reports referred to and summarized therein.
“ERISA” means the Employee Retirement Income Security Act of 1974, as from time to time amended.

“Event of Default” means any of the events described as an Event of Default in Section 9.1 hereof.
“Facilities Establishment Fund” means the Facilities Establishment Fund created by Section 166.03 of the Ohio Revised Code.

5

“Federal Income Tax Compliance Agreement” means the Federal Income Tax Compliance Agreement by and among the Treasurer, the Trustee, the Borrower, the Lessee and Operating Company relating to the Bonds.
“Final Cost Certification” means the Cost Certification dated as of the Completion Date.
“Financing Approval Documents” means, with respect to this Loan Agreement, the Resolution of the Development Financing Advisory Council dated April 25, 2012, the Approval of the Controlling Board dated June 11, 2012 and the Commitment.
“First Half Account” shall have the meaning set forth in the General Bond Order.
“Force Majeure” means, without limitation:
(i)    acts of God; strikes, lockouts, or other industrial disturbances; acts of public enemies; acts of terrorism; orders or restraints of any kind of the government of the United States or of the State or any of their departments, agencies, political subdivisions or officials, or any civil or military authority; insurrections; civil disturbances; riots; epidemics; landslides; nuclear accidents; lightning; earthquakes; fires; hurricanes; tornadoes; storms; droughts; floods; arrests; restraint of government and people; explosions, breakage, malfunction or accident to facilities, machinery, transmission pipes or canals; partial or entire failure of utilities; shortages of labor, materials, supplies, or transportation; or
(ii)    any other cause, circumstance or event not reasonably within the control of the Borrower, ATSG, the Operating Company or the Lessee.
“General Bond Order” means the General Bond Order of the Treasurer, dated April 11, 1988, as the same may be amended from time to time in accordance with its provisions or the provisions of the Trust Agreement.
“Governing Instruments” means, with respect to the Borrower, the ordinances, resolutions and agreements pursuant to which the Borrower was created, with respect to the Lessee, the articles of organization, operating agreement and other governing documents of the Lessee, and with respect to the Operating Company and ATSG, means the respective certificates of incorporation, bylaws and other governing documents of the Operating Company and ATSG.
“Governmental Authority” means, collectively, the United States of America, the State, any political subdivision thereof, any municipality, and any agency, department, commission, board or bureau of any of the foregoing having jurisdiction over the Project, the Adjacent Hangar Demolition and the Related Area Improvements.
“Guarantor” means the Lessee, the Operating Company or ATSG, and “Guarantors” means the Lessee, the Operating Company and ATSG.

6

“Guaranty” means the Guaranty Agreement dated as of the date hereof, among the Lessee, the Operating Company and ATSG, as guarantors, the Borrower, the Director and the Trustee, as the same may be amended or supplemented from time to time in accordance with its terms.
“Hazardous Discharge” has the meaning set forth in Section 5.9(c) hereof.
“Hazardous Substance” means a hazardous substance as defined under the Comprehensive Emergency Response Compensation and Liability Act of 1980, 42 U.S.C. §§9601,et seq., as from time to time amended.
“Hazardous Waste” means a hazardous waste as defined under the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§6901, et seq., as from time to time amended. 
 “Indebtedness” means all obligations for money borrowed and obligations for the payment of money in respect of purchase contracts or capitalized leases (but not including trade accounts payable and accrued expenses incurred in the ordinary course of business) and any other obligation for payment of principal and interest with respect to money borrowed, incurred or assumed by the Borrower, ATSG, the Operating Company or the Lessee, as the case may be.
“Independent Consultant” means an environmental consultant or consulting firm qualified to practice the profession of environmental consulting under the laws of the State and who or which is not a member, officer or employee of the Borrower, the Guarantors (or any Affiliates of any of the Guarantors) or any lessee of the Project.
“Independent Engineer” means an engineer or engineering firm or an architect or architectural firm qualified to practice the profession of engineering or architecture under the laws of the State and who or which is not an officer or employee of the Borrower, the Guarantors (or any Affiliates of any of the Guarantors) or any lessee of the Project.
“Intercreditor Agreement” means the Intercreditor Agreement, dated as of the date hereof, between the Director and the Trustee, as the same may be amended or supplemented from time to time in accordance with its terms.
“Interest Rate for Advances” means a rate which is three (3) percent above the interest rate borne by the Bonds.
“Issuance Expense Account” means the Series 2012-9 Issuance Expense Account created in the Series Bond Order.
“LDI Loan” means the loan from the Director to the Borrower pursuant to Section 166.25 of the Act in the total sum of the LDI Loan Amount.
“LDI Loan Amount” is the amount advanced on the LDI Loan pursuant to Section 3.2 of this Agreement, provided that the amount of the LDI Loan shall not exceed the lesser of (a) 15% of Allowable Costs as determined by the Director in the Director’s sole discretion or (b) $1,595,000.

7

“LDI Loan Note” means the Taxable LDI Loan Revenue Bond, issued by the Borrower in the principal amount of the LDI Loan Amount in the Form of Exhibit A-3 and dated the Closing Date, evidencing the obligation of the Borrower to repay the LDI Loan.
“Lease” means the Lease Agreement, dated as of the date hereof, between the Borrower and the Lessee, as the same may be amended from time to time in accordance with its terms.
“Lessee” means Air Transport International Limited Liability Company, a limited liability company organized under the laws of the State of Nevada and authorized to do business in the State, and any successor thereto or assignee under the Lease.
“Loan Documents” means, collectively, this Agreement, the Notes, and the Security Documents and any other documents delivered pursuant to this Agreement to evidence the State Assistance, the State Loan and the LDI Loan, or any of them.
“Loan Term” or “Term” means the period commencing upon the date of this Loan Agreement and ending on the date on which all obligations of the Borrower hereunder have been paid or deemed paid.
“Market Conditions” means those conditions determined by the Director, with advice from the Federal Reserve Bank of Cleveland, provided that the Director shall consider the following:

		
	(i)
	Two consecutive quarters of decline in manufacturing employment in the State of Ohio as a whole or when possible by relevant manufacturing sector (employment figures will be those reported by the Department of Job and Family Services of the State);

		
	(ii)
	A decline, as a whole or by relevant sector, in 12 of the last 36 months as detailed in the Federal Reserve Board’s national industrial production index; or

(iii)    A decline within the relevant sector of Standard & Poor’s “Industry Surveys.”
“Mortgage” means the Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Financing Statement, dated as of the date hereof, from Lessee in favor of the Director, as amended and supplemented from time to time in accordance with its terms, encumbering the Lessee’s leasehold interest in the Premises. 
“Net Proceeds” means, when used with respect to any insurance or condemnation award, the gross proceeds from the insurance or condemnation award with respect to which that term is used remaining after payment of all expenses incurred in the collection of such gross proceeds. 
“Notes” means, collectively, the State Assistance Note, the State Loan Note and the LDI Loan Note.
“Notice Address” means:

8

	
			
	(a)
	as to the Director:
	Director of Development Services Agency
Ohio Development Services Agency
Loans & Servicing Office
77 South High Street, 28th Floor
Columbus, OH  43215-6130
Phone No: (614) 466-5420
Fax: (614) 644-1789

	 
	with a copy to:
	Brouse McDowell, LPA
388 S. Main St., Suite 500
Akron, Ohio  44311
Attn: James S. Hogg, Esq.
Phone No: (330) 535-5711
Fax:  (330) 253-8601

	(b)
	as to the Trustee:
	The Huntington National Bank
Corporate Trust Services
7 Easton Oval
EA4E63
Columbus, Ohio  43219
Attn: Michelle Harmon
Phone No: (614) 331-9803
Fax: (614) 331-5862

	(c)
	as to the Borrower:
	Clinton County Port Authority
Wilmington Air Park
1113 Airport Road
Wilmington, Ohio  45177
Attn: Kevin Carver, Executive Director
Phone No: (937) 536-1783
Fax: 937-366-5005

	 
	With a copy to:
	Vorys, Sater, Seymour and Pease LLP
52 East Gay Street
Columbus, Ohio  43215
Attn: D. Scott Powell
Phone No: (614) 464-5619
Fax: (614) 719-4912

	(d)
	as to the Lessee, ATSG and the Operating Company:
	Air Transport International Limited Liability  Company
145 Hunter Drive
Wilmington, Ohio  45177
Attn: Russ Smethwick, Director, Strategic Planning
Phone No: (937) 366-3314
Fax: (937) 382-2452

9

	
			
	 
	With a copy to:
	W. Joseph Payne, Esq., General Counsel
Air Transport Services Group, Inc.
145 Hunter Drive
Wilmington, OH  45177
Phone No.: (513) 583-5258
Fax: (937) 382-2452

and

Vorys, Sater, Seymour and Pease LLP
52 East Gay Street
Columbus, Ohio  43215
Attn:  Scott J. Ziance
Phone No.:  (614) 464-8287
Fax:  (614) 719-5053

or such additional or different address, notice of which is given under Section 11.3 hereof.

“Operating Company” shall mean Airborne Maintenance and Engineering Services, Inc., a corporation organized under the laws of the State of Delaware and authorized to do business in the State, and any successor thereto or assignee under the Operating Sublease.
“Operating Sublease” means the Sublease Agreement, dated as of the date hereof, between the Lessee and the Operating Company relating to the Premises and the Project.
“Operative Documents” means the Lease, the Operating Sublease, the Guaranty, the Assignment, the RNDA and the Supplement.
“Original Deposit” means $909,000, which amount is to be provided by Lessee in cash, or by the Primary Reserve Letter of Credit, deposited with the Trustee to the credit of the Primary Reserve Account upon delivery of this Loan Agreement, in accordance with Section 4.6 hereof.
“Permitted Encumbrances” means the Lease, the TIF Cooperative Agreement, the Security Documents and any items defined as Permitted Encumbrances in the Mortgage.
“Person” or words importing persons means firms, associations, partnerships (including, without limitation, general, limited and limited liability partnerships), joint ventures, societies, estates, trusts, corporations, limited liability companies, public or governmental bodies, other legal entities and natural persons.
“Petroleum” means petroleum as defined under the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§6901, et seq., as from time to time amended.
 “Plan” is defined in Section 7.5(a)(iv)(C) hereof.
“Plans and Specifications” means the plans and specifications or other appropriate documents describing the Project, the Adjacent Hangar Demolition, and the Related Area 

10

Improvements prepared by or at the direction of the Lessee as provided in accordance with the Lease.
“Premises” means the “Premises” as defined in the Lease.
“Primary Reserve Account” means the Series 2012-9 Primary Reserve Account, established pursuant to the General Bond Order and the Series Bond Order, in the Economic Development Bond Service Fund.
“Primary Reserve Letter of Credit” means an irrevocable Approved Letter of Credit (as defined in the Trust Agreement) in the stated amount of the Original Deposit (or, if an amount of cash is to remain in the Primary Reserve Account after delivery of the Primary Reserve Letter of Credit, the difference between the amount of the Original Deposit and the aggregate amount of such cash), in form satisfactory to the Director and the Trustee, issued by the Primary Reserve Letter of Credit Issuer for the account of the Lessee, which letter of credit may be drawn upon by the Trustee to provide funds for the Primary Reserve Account pursuant to Section 4.6 hereof. The Primary Reserve Letter of Credit must permit drawings thereunder for a period of not less than one year or until 15 days after the final maturity of the Bonds, whichever occurs first.
“Primary Reserve Letter of Credit Issuer” means a commercial bank organized under the laws of the United States of America or of any state thereof and acceptable to the Trustee, which is the issuer of the Primary Reserve Letter of Credit.
“Project” means the Provision of the Project Site and the Project Facilities, constituting an Eligible Project.
“Project Debt” means the Bonds and the obligations of the Borrower to the Trustee and the Director pursuant to this Agreement.
“Project Facilities” means building and other improvements on the Project Site, and all fixtures thereto, more particularly described on Exhibit B attached hereto.

“Project Funds” means, for the purpose of this Loan Agreement, the State Assistance Project Fund and the State Loan Proceeds Fund, established pursuant to Section 8 of the Series Bond Order.
“Project Purposes” means the Provision of the Project for use by the Lessee and/or its permitted sublessees as an aircraft maintenance and/or painting hangar. 
“Project Site” means the real property located at the Air Park that is legally described in the Lease and the Mortgage.  
“Provision” means, as applicable, the acquisition, construction, renovation, related demolition and restoration, improvement, installation, equipping and furnishing of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements.
“Qualified Business” means the Operating Company’s aircraft maintenance operations at the Project Site, no part of which business shall include the following: (a) residential rental property; 

11

or (b) private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack, gambling facility or liquor store for off-premises consumption.
“Related Area Improvements” means the improvements to be made to the areas and facilities surrounding the Premises in accordance with the Plans and Specification and which are directly related to the Provision of the Project pursuant to the Lease, constituting an Eligible Project, as described and illustrated in Exhibit F attached hereto.
“Rent” means “Rent” as defined in the Lease.
“Required Property Insurance Coverage” means the insurance required to be maintained pursuant to Sections 5.4 and 5.5 hereof.
“Required Public Liability Insurance Coverage” means the insurance required to be maintained pursuant to Sections 5.5 and 5.7 hereof.
“RNDA” means the Recognition, Non-Disturbance and Attornment Agreement, dated as of the date hereof, between the Director and the Borrower, as the same may be amended or supplemented from time to time.  
“School District” means the Wilmington City School District, a public school district established under the laws of the State.
“Second Half Account” shall have the meaning set forth in the General Bond Order.
“Senior Loan Agreement” means the Credit Agreement, dated as of May 9, 2011, between ATSG, Cargo Aircraft Management, Inc., the "Lenders" from time to time a party thereto, Suntrust Bank, as Administrative Agent, Regions Bank and JPMorgan Chase Bank, N.A., as Syndication Agents, and Bank of America, N.A., as Documentation Agent, as the same has been heretofore amended and as the same may be hereafter amended, and, following termination or expiration of such agreement, any loan agreement with a commercial bank which (i) provides a senior security interest in the assets of ATSG or (ii) permits borrowings in a stated principal amount of $25,000,000 or more.
“Security Documents” means the Mortgage, the Guaranty, the Intercreditor Agreement, the RNDA, the Assignment, and any other documents delivered pursuant to this Agreement to secure the State Assistance, the State Loan or the LDI Loan or any or all of the foregoing.  
“Series Bond Order” means Series Bond Order R9-12 of the Treasurer dated December 13, 2012, as the same may be amended from time to time in accordance with its provisions or the provisions of the Trust Agreement.
“State” means the State of Ohio.
“State Assistance” means the loan by the Director to the Borrower under the Ohio Enterprise Bond Program established pursuant to Section 166.08 of the Act in the total sum of the State Assistance Amount.

12

“State Assistance Amount” means $9,055,000; provided that in no event shall the sum of the State Assistance Amount and the State Loan Amount, less the cash amount of the Original Deposit, exceed 90% of the Allowable Costs, as determined by the Director in the Director’s sole discretion pursuant to this Loan Agreement.  
“State Assistance Note” means the Taxable State Assistance Revenue Bond, issued by the Borrower in the principal amount of the State Assistance Amount in the Form of Exhibit A-2 and dated the Closing Date, evidencing the obligation of the Borrower to repay the State Assistance.
“State Assistance Project Fund” means the Series 2012-9 Project Fund established in Section 8 of the Series Bond Order.
“State Loan” means the loan by the Director to the Borrower pursuant to Section 166.07 of the Act in the total sum of the State Loan Amount.
“State Loan Amount” means $4,000,000, provided that in no event shall the sum of the State Assistance Amount and the State Loan Amount, less the cash amount of the Original Deposit, exceed 90% of the Allowable Costs, as determined by the Director in the Director’s sole discretion pursuant to this Loan Agreement.  
“State Loan Note” means the Taxable State Loan Revenue Bond, issued by the Borrower in the principal amount of the State Loan Amount in the Form of Exhibit A-1 and dated the Closing Date, evidencing the obligation of the Borrower to repay the State Loan.
“State Loan Proceeds Fund” means the State Loan Proceeds Fund established in Section 8 of the Series Bond Order.
“Supplement” means the One Hundred Twenty-Eighth Supplemental Trust Agreement, dated as of the date hereof, between the Treasurer and the Trustee, of which the Series Bond Order is a part.
“Terms and Conditions to Disbursement” means the terms and conditions which must be satisfied by the Borrower with respect to each request for disbursement of moneys from the Project Funds, which terms and conditions are set forth on Exhibit D attached hereto.
“TIF Cooperative Agreement” means the TIF Cooperative Agreement dated as of December 1, 2012 among the Borrower, the Director, the City, the School District, the Operating Company, and the Lessee relating to the tax increment financing payments to be paid by Lessee and distributed in accordance with such TIF Cooperative Agreement.
“Toxic Chemical” means and includes any material which has been shown to have significant adverse effect on human health or which is subject to regulation under the Toxic Substances Control Act (TSCA), 15 U.S.C. §§2601, et seq., applicable state law, or any other applicable Federal or state laws now in force or hereafter enacted relating to toxic substances or that constitutes “toxic chemicals” as defined under Title III of the Superfund Amendments and Reauthorization Act of 1986 (also cited as the Emergency Planning and Community Right-to-Know Act) 42 U.S.C. 

13

§§11001, et seq.,as from time to time amended.  Toxic substance includes, but is not limited to, asbestos, polychlorinated biphenyls (PCBs) and lead based paints.
“Treasurer” means the Treasurer of State of the State, or the officer who by law performs the functions of that office.
“Trust Agreement” means the Trust Agreement, dated as of April 1, 1988, between the Treasurer and the Trustee, of which the General Bond Order is a part, as the same may be amended, modified or supplemented by any amendments or modifications thereof and any supplements thereto (including, but not limited to, the Supplement) entered into in accordance with the provisions thereof.
“Trustee” means The Huntington National Bank, Columbus, Ohio, or the trustee at the time serving as such under the Trust Agreement.
“Trustee’s Annual Administrative Fee” means the annual administrative fee paid by the Borrower to the Trustee pursuant to this Agreement and which shall be calculated at a rate equal to 0.12% of the first $5,000,000 of the outstanding principal amount of Bonds and 0.07% of the outstanding principal amount of the Bonds in excess of $5,000,000, and constituting the fee of the Trustee in connection with its administration of the Project Funds, the Primary Reserve Account and the Collateral Proceeds Account.  The Trustee’s Annual Administrative Fee shall be paid by the Borrower until all amounts due and owing on the State Assistance Note are paid in full.
“UCC” means the Uniform Commercial Code as adopted and in effect in the State, from time to time.
Section 1.3.    Certain Words and References.  Any reference herein to the Director shall include those succeeding to the Director’s functions, duties or responsibilities pursuant to or by operation of law or lawfully performing such functions.  Any reference to a section or provision of the Constitution of the State or to the Act or to a section, provision or chapter of the Ohio Revised Code shall include such section, provision or chapter as from time to time amended, modified, revised, supplemented or superseded, provided that no such amendment, modification, supplementation, revision or supersession shall alter the obligation of the Borrower to pay all the amounts payable hereunder on the terms provided herein.
The terms “hereof,” “hereby,” “herein,” “hereto,” “hereunder” and similar terms refer to this Loan Agreement; and the term “heretofore” means before, and the term “hereafter” means after, the date of delivery of this Loan Agreement.  Words of the masculine gender include the feminine and the neuter, and when the sense so indicates, words of the neuter gender may refer to any gender.
[End of Article I]

14

ARTICLE II• 
DETERMINATION AND REPRESENTATIONS
Section 2.1.    Determinations of the Director; Eligible Project.  Pursuant to the Act and on the basis of the representations and other information provided by the Operating Company, the Director has heretofore made certain determinations, including without limitation those set forth in the Financing Approval Documents, which are hereby confirmed and the Director hereby determines that the financial assistance to be provided by the State pursuant to this Loan Agreement, including the State Assistance, the State Loan and the LDI Loan, will conform to the requirements of the Act, including Section 166.07, Section 166.08 and 166.25 thereof, and will further implement the purposes of the Act by creating new jobs and preserving existing jobs and employment opportunities and improving the economic welfare of the people of the State.  The Director further determines and confirms that the Project, the Adjacent Hangar Demolition, and the Related Area Improvements constitute an Eligible Project.
Section 2.2.    Representations and Warranties of the Borrower.  The Borrower hereby represents and warrants that:
(a)    The Borrower is a port authority organized, validly existing and in good standing under Sections 4582.21 through 4582.71, Ohio Revised Code, and has all requisite power, corporate or otherwise, to conduct the Borrower’s business, as presently conducted, and to own, or hold under lease, the Borrower’s assets and properties.
(a)    The Borrower has full power and authority to execute, deliver and perform the Loan Documents and the Operative Documents to which the Borrower is a party and to enter into and carry out the transactions contemplated thereby.  Such execution, delivery and performance do not, and will not, violate any provision of law applicable to the Borrower or the Governing Instruments of the Borrower and do not, and will not, conflict with or result in a default under any agreement or instrument to which the Borrower is a party or by which it or any property or assets of the Borrower is or may be bound.  The Loan Documents and the Operative Documents to which the Borrower is a party have, by proper action, been duly authorized, executed and delivered and all necessary actions have been taken in order for the  Loan Documents and the Operative Documents to constitute legal, valid and binding obligations of the Borrower, enforceable in accordance with their respective terms, except to the extent limited by bankruptcy, reorganization, moratorium, or laws of general application relating to or effecting the enforcement of creditors’ rights or by the exercise of judicial discretion or the application of principles of equity.
(b)    Without independent investigation and solely based on the representations and warranties made by the Lessee, the provision of financial assistance pursuant to the Financing Approval Documents and this Loan Agreement induced the Lessee to retain in Ohio and expand that business of the Lessee to be conducted by the use of the Project for the Project Purposes in the City, thereby creating new jobs and preserving existing jobs and employment opportunities and improving the economic welfare of the people of the State.  The Borrower would not be in a position to undertake the Provision of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements without the financial assistance under the Act afforded by the State Loan, the State Assistance and the LDI Loan.  The provision of financial assistance pursuant to the Financing 

15

Approval Documents and this Loan Agreement induced the Borrower and, to its knowledge, without independent investigation and based solely on the representations and warranties of the Lessee, the Lessee and the Operating Company, to undertake the Project without having an adverse effect on other enterprises providing jobs for people of the State, thereby preserving existing jobs and improving the economic welfare of the people of the State.  The Project is to be acquired, established, expanded, remodeled, rehabilitated, or modernized for industry, commerce, distribution or research, or a combination thereof, and based solely on the representations and warranties of the Lessee, the operation of the Project, alone or in conjunction with other facilities, will preserve existing and create additional jobs and employment opportunities and improve the economic welfare of the people of the State.
(c)    The Provision of the Project, the Adjacent Hangar Demolition and the Related Area Improvements, will be completed by the Construction Agent, and the Project will be operated and maintained by the Borrower in the City, in such manner as to conform, in all material respects, with all applicable Environmental Laws and applicable zoning, planning, building and other governmental regulations or variances therefrom imposed by any Governmental Authority and as to be consistent with the purposes of the Act.
(d)    The Borrower presently intends that the Project will be used and operated in the active conduct of a Qualified Business and in a manner consistent with the Project Purposes at the Project Site until the end of the Loan Term, and the Borrower knows of no reason why the Project will not be so operated.  If, in the future, there is a cessation of that use or operation, the Borrower will use its commercially reasonable (provided that nothing herein shall require the Borrower to expend its own funds) efforts to cause the Lessee, the Operating Company or another lessee of the Project and the Project Site to resume that use or operation or accomplish an alternate use or operation by the Borrower or others which will be consistent with the Code, the Act and this Loan Agreement.
(e)    There are no actions, suits or proceedings pending or, to the knowledge of the Borrower threatened, against or affecting the Borrower or the Project which, if adversely determined, would, individually or in the aggregate, materially impair the ability of the Borrower to perform any of the Borrower’s obligations under the Loan Documents or the Operative Documents or adversely affect the financial condition of the Borrower.
(f)    There does not exist a default by the Borrower under the provisions of any law, ordinance, regulation, decree, order, agreement or instrument of any nature whatsoever to which the Borrower is a party or by which it is bound or to which it or any of its property is subject that would materially impair the ability of the Borrower to perform any of the Borrower’s obligations under the Loan Documents or the Operative Documents (provided that no representation or warranty is made with respect to any obligations with respect to which the Borrower has no liability other than from revenues provided by or performance by a third party or reserves heretofore pledged to secure any such liability), nor is it in default under any of the Loan Documents or the Operative Documents, or in the payment of any indebtedness for borrowed money (but no representation or warranty is made with respect to any obligations with respect to which the Borrower has no obligation other than from revenues provided by a third party or reserves heretofore pledged to secure any such liability) or under any agreement or instrument evidencing any such indebtedness as to which 

16

the foregoing representation is made, and no event has occurred which, by notice, the passage of time or both, would constitute such a default that would materially impair the ability of the Borrower to perform any of the Borrower’s obligations under the Loan Documents or the Operative Documents.
(g)    Based solely on the representations and warranties made by the Lessee, the zoning ordinances applicable to the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, permit the Provision of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, on the Project Site and areas adjacent to the Project Site in accordance with the Plans and Specifications and the operation of the Lessee’s business at the Project Site; and, based solely on assurances provided by the Lessee, all utilities, including water, storm and sanitary sewer, gas, electric and telephone, and rights of access to public ways are available or will be provided to the Project Site in sufficient locations and capacities to meet the requirements of operating the Project and of any applicable Governmental Authority. 
(h)    The Borrower has made no contract or arrangement of any kind, other than the Loan Documents and the Operative Documents, which has given rise to, or the performance of which by the other party thereto would give rise to, a lien or claim of lien on the Project on or after the Closing Date other than liens granted by the Loan Documents, except Permitted Encumbrances.
(i)    To the knowledge of the Borrower and based, without independent investigation, solely on representations and warranties made by the Lessee, no representation or warranty made by the Borrower and contained in any of the Financing Approval Documents, the Loan Documents or the Operative Documents, and no statement contained in any certificate, schedule, list, financial statement or other instrument furnished to the Director by or on behalf of the Borrower, including, without limitation, the Application, contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained herein or therein not misleading.
(j)    All proceeds of the State Assistance, the State Loan and the LDI Loan shall be used for the payment of, or reimbursement to the Borrower or the Construction Agent for, Allowable Costs.  No part of any such proceeds shall be knowingly paid to or retained by the Borrower or, to Borrower’s knowledge, the Construction Agent, or any officer, agent or employee of the Borrower or any member of its Board of Directors, or, to Borrower’s knowledge, any officer, director, shareholder or employee of the Construction Agent, as a fee, kick-back or consideration of any type.  Neither the Borrower nor, to Borrower’s knowledge, the Construction Agent, has any identity of interest with any supplier, contractor, architect, subcontractor, laborer or materialman performing work or services or supplying materials in connection with the Provision of the Project, the Adjacent Hangar Demolition, or the Related Area Improvements.
(k)    Based on the representations of the Lessee, and to the Borrower’s knowledge without independent investigation, the Borrower represents as follows: except as disclosed in the Environmental Report, (1) no Hazardous Substance, Hazardous Waste,  Toxic Chemical or Petroleum has been discharged, dispersed, released, stored or treated at the Project Site, except in material compliance with Environmental Laws; (2) no Hazardous Substance, Hazardous Waste,  Toxic Chemical or Petroleum will be discharged, dispersed, released, stored or treated at the Project Site, except in compliance with Environmental Laws; (3) no asbestos or asbestos-containing 

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materials have been or will be installed, used or incorporated into any buildings, structures, additions, improvements, facilities, fixtures or installations at the Project Site, or disposed of on or otherwise released at or from the Project Site, except in compliance with Environmental Laws; (4) no underground storage tanks are located at the Project Site; (5) no investigation, administrative order, consent order and agreement, litigation or settlement under any Environmental Law with respect to any Hazardous Substance, Hazardous Waste, Toxic Chemical, Petroleum, asbestos or asbestos containing material is proposed, in existence, or threatened or anticipated with respect to the Project or the Project Site; and (6) the Project and the Project Site are in compliance with all applicable Environmental Laws and the Borrower has not received any notice from any entity, Governmental Authority, or individual claiming any violation of, or requiring compliance with any Environmental Law.  Based on the representations of the Lessee, and to the Borrower’s knowledge without independent investigation, except as disclosed in the Environmental Report, no “clean up” of the Project or the Project Site has occurred pursuant to any applicable Environmental Laws which would give rise to (i) liability on the part of any person, entity or association to reimburse any Governmental Authority for the costs of any such “clean up,” or (ii) a lien or encumbrance on the Project.  
(a)    Upon completion of the Provision of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, the Borrower will have good and marketable title to the Project, subject in all cases to no lien, charge, condition, restriction, encumbrance, easement or agreement, except as created by or otherwise permitted by the Loan Documents and the Operative Documents.
All representations and warranties contained in, or made in connection with, this Loan Agreement and the other Loan Documents shall survive the Closing Date and the disbursement of the State Loan, the State Assistance and the LDI Loan by the Director and, with respect to the State Loan and the State Assistance, the proceeds thereof by the Trustee, and shall not be limited or otherwise affected by any and all inspections, investigations, reviews or other inquiries made or other actions taken by the Director or any of his agents, representatives and designees or any other Person or board assisting any of the foregoing or acting for or on behalf of the State in connection with the Application, the Financing Approval Documents, the Loan Documents or the consummation of the State Loan, the State Assistance and the LDI Loan.
[End of Article II]

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ARTICLE I     
COMMENCEMENT AND COMPLETION OF THE PROJECT
Section 1.1.    Provision of the Project. The Borrower (a) has commenced or shall promptly hereafter cause the Provision of the Project in accordance with the Operative Documents and the Financing Approval Documents; (b) shall pay all expenses incurred in the Provision of the Project from funds made available therefor in accordance with this Loan Agreement or otherwise; and (c) shall demand, sue for, levy and recover all sums of money and debts which may be due and payable under the terms of any contract, order, receipt, guaranty, warranty, writing or instruction in connection with the Provision of the Project and will enforce the terms of any contract, agreement, obligation, bond or other performance security with respect thereto.
Section 1.2.    Deposits to the Project Funds; the Issuance Expense Account and the Capitalized Interest Account; Advances of the LDI Loan.  In order to provide funds for payment of a portion of the Allowable Costs, subject to the satisfaction of the conditions set forth in Section 3.4 hereof, the Director, on the Closing Date, shall cause to be deposited in the Issuance Expense Account $117,715.00 from the proceeds of the Bonds, to be deposited in the Capitalized Interest Account $323,202.69 from the proceeds of the Bonds and to be deposited in the State Assistance Project Fund, the balance of the proceeds of the Bonds.  The LDI Loan will be advanced in the amount of 15% of amounts disbursed for Allowable Costs pursuant to Section 3.3, which shall be made against draw requests from the Construction Agent on behalf of the Borrower upon the same terms and conditions as payments from the Project Funds.
Section 1.3.    Disbursement from the Project Funds.  The Treasurer has, in the Supplement, authorized and directed the Trustee to disburse the moneys in the Project Funds for Allowable Costs.  Each payment from the Project Funds shall be made only upon (a) the written direction of an Authorized Lessee Representative, acting on behalf of the Lessee as Construction Agent on behalf of the Borrower (in the form of Exhibit C attached hereto), who shall certify with respect to each such payment (i) on behalf of the Borrower that:  (A) the Borrower’s representations and warranties made in the Loan Documents remain true, accurate and complete as of the date thereof in all material respects, (B) no Event of Default or event which, by notice, the passage of time or otherwise, would constitute an Event of Default, exists under the Loan Documents, (C) each item for which disbursement is requested is an Allowable Cost and is necessary for the Project, the Adjacent Hangar Demolition, or the Related Area Improvements, (D) no item for which disbursement is requested is the subject of duplicative disbursement request, and (E) the Allowable Costs to be paid from the requested disbursement are capitalized under general accepted accounting principles and will be so capitalized and (ii) on behalf of the Lessee that (A) the Lessee’s representations and warranties made in the Operative Documents remain true, accurate and complete as of the date thereof in all material respects and (B) no Event of Default or event which, by notice, the passage of time or otherwise, would constitute an Event of Default exists under any of the Operative Documents,  (b) satisfaction of the provisions of the Terms and Conditions to Disbursement and (c) the written approval of the Director.  The Trustee shall be allowed a reasonable time, not to exceed 15 days, in view of the character of any investments required to be liquidated for the purpose, for the making 

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of any disbursement from the Project Funds authorized by this Section.  Disbursements from the Project Funds shall be made first from the State Assistance Project Fund and, after all amounts from the State Assistance Project Fund have been disbursed, from the State Loan Proceeds Fund; provided however, that amounts in respect of costs of issuance of the Series 2012-9 Bonds in excess of amounts deposited in the Issuance Expense Account may be disbursed from the State Loan Proceeds Fund prior to disbursement of all amounts from the State Assistance Project Fund.  
Section 1.4.    Conditions to Disbursement of the State Assistance and the State Loan.  The Director shall deliver the State Assistance Amount and the State Loan Amount to the Trustee on the Closing Date, to be thereafter disbursed by the Trustee pursuant to Section 3.3 of this Agreement, provided the Director shall have received the following on or before the Closing Date:
(a)    this Agreement and other Loan Documents, duly executed;
(b)    the Lease and the other Operative Documents, duly executed;
(c)    the Federal Income Tax Compliance Agreement, duly executed;
(a)    [Intentionally omitted];
(b)    a duly executed power of attorney to effect wire transfers, if applicable;    
(c)    evidence satisfactory to the Director of the deposit of cash in the amount of the Original Deposit with, or the delivery of the Primary Reserve Letter of Credit with, the Trustee; 
(d)    certification by (i) the Borrower that (A) the Borrower’s representations and warranties made in the Loan Documents remain true, accurate and complete as of the Disbursement Date in all material respects, (B) no default or event which, by notice, the passage of time or otherwise, would constitute a default, exists under the Loan Documents, (ii) the Lessee that (A) the Lessee’s representations and warranties made in the Operative Documents remain true, accurate and complete as of the Disbursement Date in all material respects, (B) no default or event which, by notice, the passage of time or otherwise, would constitute a default by the Lessee, exists under the Loan Documents or any of the Operative Documents; (C) that the value of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements is, or upon completion will be, equal to or greater than the total amount of the State Assistance Amount, the State Loan Amount and the LDI Loan Amount, and (D) the aggregate amount of the State Assistance and the State Loan, less the cash amount of the Original Deposit, will not exceed 90% of the total Allowable Costs; and (iii) the Operating Company that the Operating Company’s representations and warranties made in the Application remain true, accurate and complete as of the Disbursement Date in all material respects; 
(e)    evidence of the liability and property insurance required by the Loan Documents;
(f)    evidence of availability and adequacy of utilities for the Project;
(g)    a Certificate of Good Standing from the Secretary of State of the State of Delaware and the State, each dated within 10 days prior to the Disbursement Date, with respect to each of 

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ATSG and the Operating Company and a certificate of Good Standing from the Secretary of State of Nevada and the State, each dated within 10 days prior to the Disbursement Date, with respect to the Lessee;
(h)    certified copies of the resolutions of the Borrower authorizing execution and delivery of the Loan Documents to which it is a party, and any other document, certificate or instrument to be executed and delivered thereunder, and performance of each obligation thereunder, as applicable;
(i)    certified copies of the resolutions or written actions of the Lessee authorizing execution and delivery of the Loan Documents and Operative Documents to which it is a party and any other document, certificate or instrument to be executed and delivered thereunder, and performance of each obligation thereunder, as applicable;
(j)    certified copies of the resolutions or written actions of the Operating Company authorizing execution and delivery of the Operating Sublease and any other document, certificate or instrument to be executed and delivered thereunder, and performance of each obligation thereunder, as applicable;
(k)    certified copies of the resolutions or written actions of ATSG authorizing execution and delivery of the Guaranty and any other document, certificate or instrument to be executed and delivered thereunder, and performance of each obligation thereunder, as applicable;
(l)    copies, certified by the Borrower to be true, correct and complete, of the Governing Instruments of the Borrower; 
(m)    copies, certified by the Lessee to be true, correct and complete, of the Governing Instruments of the Lessee;
(n)    copies, certified by the Operating Company to be true, correct and complete, of the Governing Instruments of the Operating Company;
(o)    copies, certified by ATSG to be true, correct and complete, of the Governing Instruments of ATSG;
(p)    a certificate of incumbency as to the officer(s) executing the Loan Documents on behalf of the Borrower; 
(q)    a certificate of incumbency as to the officer(s) executing the Loan Documents and the Operative Documents on behalf of the Lessee;    
(r)    a certificate of incumbency as to the officer(s) executing the Operating Sublease on behalf of the Operating Company;    
(s)    a certificate of incumbency as to the officer(s) executing the Guaranty on behalf of ATSG;    
(t)    copies of all lien and litigation searches of Lessee, Operating Company and ATSG; 

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(u)    copies of all Plans and Specifications;
(v)    all licenses and permits required by any Governmental Authority;
(w)    an environmental assessment or assessments of the Project Site and the improvements thereon, in form satisfactory to the Director;
(x)    copy of the Operating Sublease;
(y)    copy of the ALTA survey of the Project Site;
(z)    a copy of the ALTA Loan Policy of Title Insurance for the Project Site;
(aa)    an opinion of the Borrower’s counsel, which sets forth substantially the following:
(i)    the Borrower is a body corporate and politic of the State, duly organized and existing under Sections 4582.21 through 4582.71, Ohio Revised Code;
(ii)    the Borrower has full power and authority to lease the Premises and the Project to the Lessee and to enter into, execute, deliver and perform the Loan Documents and the Operative Documents to which Borrower is a party;
(iii)    the Loan Documents and the Operative Documents to which the Borrower is a party, have been duly authorized, executed and delivered by the Borrower and are valid and binding instruments, enforceable against the Borrower in accordance with their respective terms, except as such enforcement may be limited by the application of bankruptcy, insolvency, reorganization, moratorium and other similar laws or equitable principles affecting creditors’ rights generally; and the Borrower has taken all actions necessary to carry out and give effect to the transactions contemplated to be performed on the part of the Borrower under the Loan Documents and the Operative Documents to which it is a party;
(iv)    the execution and delivery of each of the Loan Documents and the Operative Documents to which the Borrower is a party and the performance by the Borrower of the actions required of the Borrower thereby and the consummation of the transactions contemplated therein do not and will not conflict with or violate any provisions of the Borrower’s Governing Instruments, or to the knowledge of such counsel constitute a default under, conflict with or violate of any judgment, decree, indenture, mortgage, deed of trust, lease, guaranty, agreement or other instrument to which the Borrower is a party or by which the Borrower is bound, or conflict with or violate any provisions of law, administrative regulation, or court order or consent decree;
(v)    there is no action, temporary restraining order, injunction, suit, proceeding or inquiry before or by any judicial or administrative court or agency, pending or to the knowledge of such counsel threatened against or affecting, or involving the properties, securities or businesses of the Borrower; 

22

(vi)    the Borrower has obtained any and all requisite governmental consents, permits, licenses and approvals necessary for the Borrower to enter into, execute and deliver the Loan Documents and the Operative Documents to which the Borrower is a party and to perform the Borrower’s obligations thereunder, provided that no opinion is being rendered with respect to the Provision of the Project, Adjacent Hangar Demolition or the Related Area Improvements; and
(i)    Such assumptions and qualifications as may be agreed by Borrower’s counsel and the Director.
(bb)    an opinion of the Lessee’s counsel, which sets forth substantially the following:
(i)    The Lessee has been duly organized and is validly existing as a limited liability company in good standing under the laws of the State of Nevada, is qualified to do business in the State, and has all requisite power to conduct the Lessee’s business and to own, or hold under lease, the Lessee’s property;
(ii)    The Lessee has full power and authority to execute and deliver the Loan Documents and Operative Documents to which it is a party;
(iii)    The Lessee has duly authorized the taking of any and all actions necessary to carry out and give effect to the transactions contemplated to be performed on the part of the Lessee under the Loan Documents and the Operative Documents;
(iv)    Each of the Loan Documents and the Operative Documents to which the Lessee is a party has been duly authorized, executed and delivered by the Lessee, and is a legal, valid and binding obligation of the Lessee, enforceable in accordance with its terms, except as such enforcement may be limited by the application of bankruptcy, insolvency, reorganization, moratorium and other similar laws or equitable principles affecting creditors’ rights generally;
(v)    The execution and delivery of each of the Loan Documents and the Operative Documents to which the Lessee is a party and the performance by the Lessee of the actions required of the Lessee thereby and the consummation of the transactions contemplated therein do not and will not (A) conflict with or violate any provisions of the Lessee’s Governing Instruments, or (B) constitute a default under or conflict with any resolution of the shareholders or directors of the Lessee, or (C) conflict with or violate any provisions of applicable law, or (D) to the knowledge of such counsel, conflict with or violate any judgment, decree, indenture, mortgage, deed of trust, lease, guaranty, agreement or other instrument to which the Lessee is a party or by which the Lessee, or any of Lessee’s property, is bound;
(vi)    There is no action, temporary restraining order, injunction, suit, proceeding, inquiry or investigation at law or in equity, before or by any judicial or administrative court or agency, pending or, to the best knowledge of such counsel, threatened against or affecting, or involving the properties, securities or businesses of the Lessee; 

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(vii)    The Lessee has obtained any and all requisite governmental consents, permits, licenses and approvals necessary for the Lessee to enter into, execute and deliver the Loan Documents and Operative Documents to which the Lessee is a party and to perform the Lessee’s obligations thereunder; 
(viii)    Upon the recording of the Mortgage in the office of the Recorder of Clinton County, Ohio, the Mortgage will have been duly recorded in all public offices in which it is required to be so recorded by Ohio law to publish notice thereof; and
(i)    Such assumptions and qualifications as may be agreed by Lessee’s counsel and the Director;
(a)    an opinion of Operating Company’s counsel, which sets forth substantially the following:
(i)    The Operating Company has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware and has all requisite power to conduct the Operating Company’s business and to own, or hold under lease, the Operating Company’s property;
(ii)    The Operating Company has full power and authority to execute and deliver the Operating Sublease;
(iii)    The Operating Company has duly authorized the taking of any and all actions necessary to carry out and give effect to the transactions contemplated to be performed on the part of Operating Company under the Operating Sublease;
(iv)    The Operating Sublease has been duly authorized, executed and delivered by the Operating Company, and is a legal, valid and binding obligation of the Operating Company, enforceable in accordance with its terms, except as such enforcement may be limited by the application of bankruptcy, insolvency, reorganization, moratorium and other similar laws or equitable principles affecting creditors’ rights generally; 
(v)    The execution and delivery of the Operating Sublease and the performance by the Operating Company of its obligations thereunder do not and will not conflict with or violate any provisions of the Operating Company’s Governing Instruments, or constitute a default under, conflict with or violation of any judgment, decree, indenture, mortgage, deed of trust, lease, guaranty, agreement or other instrument to which the Operating Company is a party or by which the Operating Company is bound, or conflict with or violate any provisions of law, administrative regulation, or court order or consent decree;  and 
(vi)    Such assumptions and qualifications as may be agreed by Operating Company’s counsel and the Director.
(b)    an opinion of ATSG’s counsel, which sets forth substantially the following:

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(i)    ATSG has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware and has all requisite power to conduct ATSG’s business and to own, or hold under lease, ATSG’s property;
(ii)    ATSG has full power and authority to execute and deliver the Guaranty;
(iii)    ATSG has duly authorized the taking of any and all actions necessary to carry out and give effect to the transactions contemplated to be performed on the part of ATSG under the Guaranty;
(iv)    The Guaranty has been duly authorized, executed and delivered by ATSG, and is a legal, valid and binding obligation of ATSG, enforceable in accordance with its terms, except as such enforcement may be limited by the application of bankruptcy, insolvency, reorganization, moratorium and other similar laws or equitable principles affecting creditors’ rights generally; 
(v)    The execution and delivery of the Guaranty and the performance by ATSG thereunder do not and will not conflict with or violate any provisions of ATSG’s Governing Instruments, or constitute a default under, conflict with or constitute a violation of any judgment, decree, indenture, mortgage, deed of trust, lease, guaranty, agreement or other instrument to which ATSG is a party or by which ATSG is bound, or conflict with or violate any provisions of law, administrative regulation, or court order or consent decree; and
(vi)    Such assumptions and qualifications as may be agreed by ATSG’s counsel and the Director.
(c)    evidence that the Borrower has satisfied the terms and conditions set forth on Exhibit D attached hereto, with respect to any disbursement request for Allowable Costs expected to be fulfulled on the Disbursement Date, and such other documents, instruments or certificates as the Director shall reasonably require.
The Trustee shall deposit the State Assistance in the State Assistance Project Fund; the Issuance Expense Account and the Capitalized Interest Account, as provided in the Series Bond Order, and the State Loan Amount in the State Loan Proceeds Fund upon receipt.  Moneys deposited to the Project Funds pursuant to this Section 3.4 shall be disbursed for Allowable Costs in the manner provided by Section 3.3 hereof.
Section 1.5.    Establishment of Completion Date.  The Borrower, based on the representations of the Lessee and Operating Company, covenants that the Completion Date shall occur not later than June 30, 2014.  The Completion Date shall be evidenced to the Director by a certificate signed by the Authorized Lessee Representative, as Construction Agent for the Borrower, as provided in Section 2.2(i) of the Lease.  Upon receipt of such certificate the Trustee shall retain in the Project Funds amounts specified in such certificate as not yet being due, being contested or otherwise required to be retained in the Project Funds, and all other amounts remaining in the State Assistance Project Fund shall be transferred to the Collateral Proceeds Account and all other amounts remaining in the State Loan Proceeds Fund shall be paid to the Director and applied to prepayment 

25

of the State Loan Note in accordance with its terms.  Notwithstanding the foregoing, such certificate shall state that it is given without prejudice to any rights against third parties which exist at the date of such certificate or which may subsequently come into being.  
Section 1.6.    Borrower to Pay, or Cause Lessee to Pay, Costs in Event Project Funds Insufficient.  In the event the moneys from the State Assistance, moneys from the State Loan in the Project Funds and available for payment of costs of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, and moneys advanced from the LDI Loan and available for payment of costs of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, should not be sufficient to pay the Allowable Costs or, if any other costs of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements remain unpaid, the Borrower agrees, for the benefit of the Director to complete, or to cause the Lessee to complete, the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, and to  and to pay, or cause to the Lessee to pay, all costs of such completion in full in excess of the moneys so available.  The Director does not make any warranty, either express or implied, that the moneys which will be paid into the Project Funds or made available from the State Assistance, the State Loan or the LDI Loan, and which under the provisions of this Loan Agreement will be available for payment of the Allowable Costs, will be sufficient to pay the Allowable Costs.  The Borrower agrees that if after exhaustion of the moneys from the State Assistance, the moneys from the State Loan and the moneys from the LDI Loan, the Borrower shall pay, or shall cause the Lessee to pay, any portion of the Allowable Costs pursuant to the provisions of this Section, neither Borrower nor Lessee shall be entitled to any reimbursement therefor from the Director or the Trustee, nor shall the Borrower be entitled to any diminution in or postponement of the loan payments payable under Section 4.2, Section 4.3 or Section 4.4 hereof.  The Borrower shall also pay, or caused to be paid, all costs incident to the State Assistance, the State Loan and the LDI Loan.  
Section 1.7.    Plans and Specifications; Inspections.  At the Director’s option, the Director may designate an employee or officer of the State or may retain, at the Borrower’s expense, an architect, engineer, appraiser or other consultant for the purpose of approving the Plans and Specifications, verifying costs and performing inspections of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, as Provision of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, progresses or reviewing any construction contracts and payment or performance bonds or other forms of assurance of completion of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements.  Such inspections, reviews or approvals shall not impose any responsibility or liability of any nature upon the Director, the State or officers, employees, agents, representatives or designees of the Director or the State, or, without limitation, make or cause to be made any warranty or representation as to the adequacy or safety of the structures or any of their component parts or any other physical condition or feature pertaining to the Project, the Adjacent Hangar Demolition, and the Related Area Improvements.  At the request of the Director, the Borrower shall make, or shall cause the Construction Agent to make, periodic reports (including, if required, submission of updated Cost Certifications) to the Director concerning the status of completion and the expenditures for costs in respect thereof.
The Borrower, or the Construction Agent, on behalf of the Borrower, may revise the Plans and Specifications from time to time in accordance with the Lease; provided, that no revision shall 

26

be made (a) which would change the Project Purposes to purposes other than those permitted by the Act or that would jeopardize the tax-exempt status of the Bonds, (b) without obtaining, to the extent required by law, the approval of any applicable Governmental Authority or (c) without obtaining the written approval of the Director if such revision would change the amounts set forth in the most recently furnished Cost Certification, which approval will not be unreasonably withheld, conditioned or delayed.  In any event, all revisions to the Plans and Specifications shall be promptly filed with the Director, upon request.  The Borrower shall complete, or shall cause to be completed, the Provision of the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, substantially in accordance with the Plans and Specifications.
Section 1.8.    Remedies to be Pursued against Contractors and Subcontractors and their Sureties.  In the event of default of any contractor or subcontractor under any contract made by it in connection with the Project or in the event of a breach of warranty with respect to any materials, workmanship or performance guaranty, the Borrower will, or will cause the Construction Agent to, promptly proceed to the extent commercially reasonable, either separately or in conjunction with others, to exhaust the remedies of the Borrower against the contractor or subcontractor so in default and against each surety for the performance of such contract.  Any amounts recovered as refunds or other adjustments to the cost of the Project in connection with the foregoing, after deduction of expenses incurred in such recovery, and such expenses as necessary to return the work conducted by such contractor or subcontractor to ordinary operating condition, prior to the Completion Date shall be paid into the Project Fund from which such amount was paid, or if recovered after the Completion Date and the full disposition of the Project Funds in accordance with Section 3.5 hereof, shall be paid to the Trustee for deposit in the Collateral Proceeds Account.
Section 1.9.    Investment of Project Funds, Primary Reserve Account, Capitalized Interest Account or Collateral Proceeds Account.  Any moneys held as part of the Project Funds, the Primary Reserve Account, the Capitalized Interest Account or the Collateral Proceeds Account shall be invested by the Trustee, upon the written or oral direction (but if oral, confirmed promptly in writing) of the Authorized Lessee Representative, in Eligible Investments; provided, however, that moneys held as part of the Capitalized Interest Account of the Collateral Proceeds Account shall be invested only in Eligible Investments which are not “investment property” within the meaning of Section 148(b) of the Code; and provided, further, that cash amounts in the Primary Reserve Account in excess of the amount of the Original Deposit and amounts in the Capitalized Interest Account and the Collateral Proceeds Account shall not be invested at a yield which is materially higher than the yield on the bonds, within the meaning of the Code.

[End of Article III]

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ARTICLE I     
STATE ASSISTANCE AND LOAN REPAYMENTS
Section 1.10.    State Assistance.  The Director shall lend to the Borrower the State Assistance Amount pursuant to the Supplement and this Loan Agreement as the State Assistance for the purposes of financing a portion of the Allowable Costs.  The Borrower agrees to repay the State Assistance by making all of the payments provided for in Section 4.4 of this Agreement; provided, however, that such amounts are payable solely from the Rent and any other amounts derived by the Borrower from the lease, sale or other disposition of the Project, and from any other collateral that may from time to time be assigned to the Director to secure payment thereof, and are an obligation of the Borrower only to the extent of such moneys and any such collateral.  The loan of the State Assistance shall be evidenced by and secured by the Loan Documents, including but not limited to, the State Assistance Note. 
Section 4.2.    State Loan.  On the terms and conditions of this Agreement, the Director shall lend to the Borrower the State Loan Amount to assist in the financing of a portion of the Allowable Costs.  The State Loan shall be evidenced and secured by the Loan Documents, including, but not limited to, the State Loan Note.  The State Loan shall be disbursed upon the satisfaction of the conditions set forth in Section 3.4 hereof.  The State Loan shall be disbursed only from, and only to the extent that on the Disbursement Date funds not theretofore committed are available to make the State Loan from moneys in the Facilities Establishment Fund.

The terms of repayment of the State Loan shall be as set forth in the State Loan Note, and the Borrower shall make all payments required to be made on the State Loan Payment Schedule attached to the State Loan Note as and when due; provided, however, that such amounts are payable solely from the Rent and any other amounts derived by the Borrower from the lease, sale or other disposition of the Project, and from any other collateral that may from time to time be assigned to the Director to secure payment thereof, and are an obligation of the Borrower only to the extent of such moneys and any such collateral.  The Borrower authorizes the Director to deliver the State Loan Payment Schedule following the Disbursement Date and to attach such State Loan Payment Schedule to this Agreement and the State Loan Note.
Section 4.3.    LDI Loan.  (a)    On the terms and conditions of this Agreement, the Director shall lend to the Borrower the LDI Loan Amount to assist in the financing of a portion of the Allowable Costs.  The LDI Loan shall be evidenced and secured by the Loan Documents, including, but not limited to, the LDI Loan Note.  The LDI Loan shall be disbursed from time to time upon the satisfaction of the conditions set forth in Section 3.2 hereof.  

(b)The terms of repayment of the LDI Loan shall be as set forth in the LDI Loan Note, and the Borrower shall make all payments required to be made on the LDI Loan Note as and when due; provided, however, that such amounts are payable from the Rent and any other amounts derived by the Borrower from the lease, sale or other disposition of the Project, and from any other collateral 

28

that may from time to time be assigned to the Director to secure payment thereof, and are an obligation of the Borrower only to the extent of such moneys and any such collateral.  
(c)If the following conditions are satisfied as of the Completion Date, the LDI Loan shall be immediately forgiven and Borrower’s obligations to make payments under the LDI Loan Note and under this Agreement with respect to the LDI Loan shall be deemed satisfied as of the Completion Date:
		
	(i)
	The LDI Loan is then in full force and effect and no Event of Default  hereunder shall have occurred and is then continuing;

		
	(ii)
	The Project has been fully constructed and completed, as certified in writing by Borrower, or by the Construction Agent on behalf of Borrower, and confirmed by the Director; and

		
	(iii)
	The Construction Hours Commitment as set forth in Section 1.2 of this Agreement has been satisfied, as certified in writing by Borrower, or by the Construction Agent on behalf of Borrower, and confirmed by the Director.

Section 4.4.    Borrower Payments for the State Assistance.  (a)  The terms of repayment of the State Assistance shall be as set forth in the State Assistance Note, and the Borrower shall make all payments required to be made on the State Assistance Payment Schedule attached to the State Assistance Note as and when due; provided, however, that such amounts are payable solely from the Rent and any other amounts derived by the Borrower from the lease, sale or other disposition of the Project, and from any other collateral that may from time to time be assigned to the Director to secure payment thereof, and are an obligation of the Borrower only to the extent of such moneys and any such collateral.  The Borrower hereby authorizes the Director to deliver the State Assistance Payment Schedule and to attach the State Assistance Payment Schedule to this Agreement and the State Assistance Note on or after the Closing Date.  
(b)  If the Borrower fails to make any payment required by this paragraph on the due date thereof, the Trustee shall, to the extent that funds are available therefor, transfer to the Debt Service Account an amount equal to such payment from the Collateral Proceeds Account and, if the balance in the Collateral Proceeds Account is insufficient, from the Primary Reserve Account.
(c)  If moneys are transferred from the Primary Reserve Account or the Collateral Proceeds Account to the Debt Service Account pursuant to the provisions of Section 14 of the General Bond Order, and if no Event of Default is then existing, the Borrower shall receive a credit against loan payments payable hereunder, in inverse order of their maturity, in an amount equal to the amount so transferred.
(d)  If no Event of Default is then existing and if the balance in the Primary Reserve Account is greater than or equal to the aggregate amount of loan payments to become due and payable during the remaining Loan Term, the Borrower may, at the direction of the Lessee, direct the Trustee to apply moneys in the Primary Reserve Account to monthly loan payments as they become due and, in such case and notwithstanding the provisions of Section 4.6 hereof, the Borrower shall not be 

29

required to deliver moneys to the Trustee to restore the balance in the Primary Reserve Account to an amount equal to the Original Deposit.
(e)  (i) (A) Not later than the 15th day of each month, commencing January 15, 2014, the Borrower shall pay to the Trustee an amount equal to (1) 1/12th of the Trustee’s Annual Administrative Fee and (2) any amounts payable pursuant to Section 7.5(b)(vi) hereof and (B) not later than the 15th day of each month, commencing November 15, 2015, the Borrower shall pay to the Trustee an amount equal to 1/12th of the Director’s State Assistance Administrative Fee.  (ii)  Not later than the 15th day of each May and November, commencing May 15, 2016, the Borrower shall pay to the Trustee an amount equal to 1/2 of the Director’s State Loan Administrative Fee.  The Borrower and the Director acknowledge and agree that the Additional Payments are intended to reimburse the Development Services Agency for a portion of the cost of administering the Ohio Enterprise Bond Fund program.
(f)  The Borrower also agrees to pay to the Director reasonable expenses of the Director related to the Project, the Adjacent Hangar Demolition, and the Related Area Improvements, and requested by the Borrower or required by this Agreement or the Trust Agreement, or incurred in enforcing the provisions of this Agreement or the Trust Agreement and which are not otherwise required to be paid by the Borrower under the terms of this Agreement.
(g)  In the event Borrower should fail to make any of the payments required in Section 4.2, Section 4.3 or Section 4.4, the item or installment so in default shall continue as an obligation of the Borrower until the amount in default shall have been fully paid, and the Borrower agrees to pay the same with interest thereon at a rate equal to the Interest Rate for Advances.  If any payment required by Section 4.2, Section 4.3 or Section 4.4 is not made by the first day of the month following the month in which such payment is due, the Borrower shall pay, in addition to such payment, a late payment charge of five percent (5%) of the amount of such payment.  
Section 4.5.    Place of Payments.  The loan payments and the late payment charges to be paid in connection with the State Assistance shall be paid directly to the Trustee by automated clearinghouse pre-authorized payment system for the account of the Director, and the Trustee shall deposit such payments in the Debt Service Account.  The Additional Payments with respect to the State Assistance shall be paid to the Trustee, who shall pay such amounts to the Director, not less frequently than monthly, for deposit in the First Half Account (if received by the Director between January 1 and June 30) or the Second Half Account (if received by the Director between July 1 and December 31) created in the Trust Agreement.  The loan payments and the late payment charges related to the State Loan shall be paid directly to the Director.  Amounts received by the Director pursuant to the TIF Cooperative Agreement shall be credited against amounts payable with respect to the State Loan.  The loan payments and the late payment charges related to the LDI Loan shall be paid directly to the Director.  
Section 4.6.    Primary Reserve Account.  Upon delivery of this Loan Agreement and in accordance with the General Bond Order and the Series Bond Order, the Borrower shall deliver, or cause to be delivered, to the Trustee for deposit or credit to the Primary Reserve Account a sum of money equal to the Original Deposit (which sum may, to the extent provided for in the Series Bond Order, be derived from proceeds of the sale of the Bonds or pursuant to the Primary Reserve Letter 

30

of Credit).  In accordance with the provisions of the General Bond Order and the Series Bond Order, the Trustee shall transfer moneys from the Primary Reserve Account to the Debt Service Account (and shall draw on the Reserve Letter of Credit if necessary, in order to obtain such moneys) if (a) the Borrower shall have failed to make a loan payment required by the State Assistance Note, and (b) the balance in the Collateral Proceeds Account is insufficient to provide funds for such transfer.
If, as a result of a transfer described in the immediately preceding paragraph, the balance in the Primary Reserve Account is less than the Original Deposit, the Trustee shall promptly notify the Borrower and the Lessee, by telephone and confirmed in writing, of the amount of such deficiency, and the Borrower shall, not later than ten (10) days after receipt of such notice, deliver to the Trustee for deposit or credit to the Primary Reserve Account, or cause to be deposited or credited to the Primary Reserve Account, moneys or the Primary Reserve Letter of Credit in the amount of such deficiency.
Pursuant to the Supplement, the Trustee is directed to draw upon any Primary Reserve Letter of Credit prior to its expiration for the full amount thereof and deposit the proceeds of such drawing in the Primary Reserve Account unless, not later than thirty (30) days prior to the expiration of such Primary Reserve Letter of Credit, the Borrower shall have delivered to the Trustee a replacement Primary Reserve Letter of Credit in the same amount as the expiring letter of credit, or evidence that the issuer of the Primary Reserve Letter of Credit has extended the maturity thereof for a period of not less than one (1) year (or fifteen (15) days following the final maturity date of the Bonds, if earlier).
Pursuant to Section 14 of the General Bond Order, the Trustee shall, under the circumstances described in said Section 14, transfer moneys from the Primary Reserve Account to the Debt Service Account, and the Trustee shall draw on any Primary Reserve Letter of Credit, if necessary, to obtain moneys to make such transfer.
Section 4.7.    Extent of the Covenants of the Borrower; No Personal Liability or Pledge of General Credit.  All covenants, obligations and agreements of the Borrower contained in this Loan Agreement, the Loan Documents and the Operative Documents shall be effective only to the extent authorized and permitted by applicable law. No such covenant, obligation or agreement of the Borrower shall be deemed to be a covenant, obligation or agreement of any present or future officer, agent or employee of the Borrower or any member of its Board of Directors in other than that person’s official capacity.  No officer, agent or employee or other person acting on behalf of the Borrower or its Board of Directors executing the Notes, this Loan Agreement, the Loan Documents or the Operative Documents shall be liable thereon, or be subject to any personal liability or accountability whatever by reason of the issuance of the Notes or the execution and delivery of any such documents.  Nothing in this Loan Agreement, the Commitment, the Notes, the Bond Legislation, the Loan Documents or the Operative Documents shall constitute a general obligation, debt or bonded indebtedness, or a pledge of the general credit or taxing power, of the Borrower, and the Director has not been given and does not have any right to have excises or taxes levied by the Borrower or the taxing authority of any other political subdivision or other local agency for any payment or other obligation required or secured thereby, but all such payments and obligations shall, in addition to all rights of the Trustee to amounts held under the Trust Agreement, be payable 

31

solely from the Rent and any other amounts derived by the Borrower from the lease, sale or other disposition of the Project, and from any other collateral that may from time to time be assigned to the Director to secure payment thereof, and are an obligation of the Borrower only to the extent of such moneys and any such collateral; provided that the limitations set forth in this Section 4.7 shall in no way reduce or diminish the rights of the Director to enforce the Guarantors’ performance under the Guaranty.
[End of Article IV]

32

ARTICLE IV• 
MAINTENANCE, TAXES AND INSURANCE
Section 5.1.    Maintenance and Modifications of Project.  The Borrower agrees that during the Loan Term (but after the Completion Date) it will keep, or cause to be kept, the Project in good repair and good operating condition, ordinary wear and tear excepted.
The Borrower shall have the privilege of remodeling or making additions, modifications or improvements to the Project from time to time as it, in the Borrower’s discretion, may deem to be desirable for its uses and purposes; provided, the Project is still used for the Project Purposes upon completion of remodeling, additions, modifications or improvements.  The cost of such remodeling, additions, modifications and improvements shall be paid by the Borrower.
Section 5.2.    Removal of Project.  The Borrower shall have the privilege from time to time of substituting machinery, equipment and related property for any portion of the Project; provided that the machinery, equipment and related property so substituted shall be of a value not less than the value of the machinery, equipment and related property replaced and shall not make the Project unsuitable for the Project Purposes.  Any such substitute machinery, equipment and related property shall become part of the Project for purposes of this Agreement.  In the event the aggregate of such substitutions exceed $50,000, the Borrower shall promptly notify the Director and the Trustee of all additional substitutions of machinery, equipment and related property, which notice shall include a description of the substituted machinery, equipment and related property.  The Borrower shall also have the privilege of removing any portion of the Project without substitution therefor; provided that the Lessee shall pay (a) so long as any of the Bonds remain outstanding, to the Trustee for deposit in the Collateral Proceeds Account, or (b) if no Bonds remain outstanding, to the Director for application to prepayment of the State Loan Note and the LDI Loan Note in accordance with their respective terms, a sum equal to the then value of the portion of the Project removed, as determined by an Independent Engineer selected by the Lessee, and shall deliver to the Director and the Trustee a certificate signed by said Independent Engineer setting forth the value of the portion of the Project removed and stating that the removal of thereof will not make the Project unsuitable for the Project Purposes.
The Director agrees to execute and deliver such releases and other documents as the Lessee may properly request in connection with any action taken by the Borrower in conformity with this Section 5.2.  The removal of a portion of the Project pursuant to the provisions of this Section shall not entitle the Borrower to any abatement or diminution of the amounts payable under Sections 4.2, 4.3 or 4.4 hereof. 
Section 5.3.    Taxes, Other Governmental Charges and Utility Charges.  The Borrower shall pay or cause to be paid, as the same respectively become due, all taxes, assessments, whether general or special, and governmental charges of any kind whatsoever that may at any time be lawfully assessed or levied against or with respect to the Project, or other property installed or brought by the Borrower or the Lessee therein or thereon (including, without limiting the generality of the foregoing, any taxes levied upon or with respect to the receipts, income or profits which, if not paid, may become or be made a lien on the Project or a charge on the revenues and receipts therefrom), 

33

and all utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the Project. 
Notwithstanding the foregoing, either the Borrower or the Lessee shall have the right, but at its own cost and expense and after prior written notice to the Director, to contest the validity or the amount of any such tax, assessment or governmental charge by appropriate proceedings timely instituted, unless the Director shall notify the Borrower and the Lessee in writing that, in the reasonable opinion of legal counsel to the Director, by nonpayment of any such items the lien and security interest granted under the Mortgage to the Director will be materially and adversely affected or the Project or any material part thereof will be subject to loss or forfeiture, in which event the Borrower or the Lessee shall promptly cause such lien to be discharged as aforesaid or give the Director adequate protection in regard to such risks.  The Director shall have the commercially reasonable discretion to determine the adequacy of the protection proffered.
Section 5.4.    Insurance Required.  The Borrower shall insure, or shall cause the Lessee to insure, the Project in an aggregate amount equal to the replacement cost of the Project, but in any event not less than the sum of (a) 100% of the aggregate principal amount of Bonds outstanding from time to time, (b) the unpaid principal balance of the State Loan, and (c) the unpaid principal balance of the LDI Loan, from time to time, against loss or damage by fire, boiler explosion, as well as such other risks as are covered by the endorsement commonly known as “extended coverage,” plus vandalism and malicious mischief, with insurance companies authorized to issue such policies in the State.  Any insurance policy maintained by the Borrower pursuant to this Section may provide that the policy does not cover the first $100,000 or less of loss, or such greater amount as may (with due regard to insurance practices from time to time current with respect to properties similar to the Project) be approved in writing by the Director, with the result that the Borrower or the Lessee, as applicable, is its own insurer to that extent.  Any return of insurance premium or dividends based upon such premium shall be due and payable solely to the Borrower or the Lessee, as applicable, unless such premium shall have been paid by the Director or the Trustee.  The obligation to provide and maintain insurance shall be the obligation of the Borrower.
During the course of any construction, installation, renovation, restoration or repair on the Project Site, builder’s completed value risk insurance against “all risks of physical loss,” including collapse and transit coverage, with deductibles not to exceed $100,000, in nonreporting form, covering the total value of work performed and equipment, supplies and materials furnished.  Said policy of insurance shall contain the “permission to occupy upon completion of work or occupancy” endorsement.

As an alternative to the above, the Borrower may insure, or may cause the Lessee to insure, such property under a blanket insurance policy or policies that cover not only such property but also other properties of the Lessee or its Affiliates.
Section 5.5    Additional Provisions Respecting Insurance.  Any insurance policy issued pursuant to Section 5.4 hereof shall be so written or endorsed as to make losses, if any, adjustable by the Borrower or the Lessee and payable to the Borrower or the Lessee and the Trustee, for the account of the Director; provided, 

34

any such insurance policy may be so written or endorsed as to make losses not in excess of $100,000 for each occurrence held by and payable directly to the Borrower or the Lessee as hereinafter provided in Section 6.1.  Each insurance policy provided for in Section 5.4 and Section 5.7 hereof shall contain a provision to the effect that the insurance company shall not cancel the same without first giving written notice thereof to the Director and the Trustee at least thirty days in advance of such cancellation, and the Borrower or the Lessee shall deliver to the Director and the Trustee duplicate copies or certificates of insurance pertaining to each such policy of insurance procured by the Borrower or Lessee and shall keep such duplicate copies or certificates up to date.
Section 5.6.    Application of Net Proceeds of Insurance.  The Net Proceeds of the insurance carried pursuant to the provisions of this Loan Agreement shall be applied as follows: (i) the Net Proceeds of the insurance required in Section 5.4 hereof shall be applied as provided in Section 6.1 hereof, and (ii) the Net Proceeds of the insurance required in Section 5.7 hereof shall be applied toward extinguishment or satisfaction of the liability with respect to which such insurance proceeds may be paid.
Section 5.7.    Public Liability Insurance.  The Borrower shall, or shall cause the Lessee to, maintain commercial general liability insurance against claims for personal injury, death or property damage suffered by others upon, in or about any premises occupied by the Lessee, and maintain all workers’ compensation or similar insurance as may be required under the laws of any state or jurisdiction in which the Lessee may be engaged in business.  All insurance for which provision has been made in this Section 5.7 shall be maintained against such risks, at such amounts and with such retentions or deductibles as such insurance is usually carried by Persons engaged in the same or similar businesses, and all such insurance shall be effected or maintained in force under a policy or policies issued by insurers of recognized responsibility, except that the Borrower may maintain workers’ compensation insurance in any state or jurisdiction in any manner permitted by the laws of that jurisdiction.  The Borrower, the Director and the Trustee shall be made additional insureds under such general liability policies.  The insurance provided by this Section 5.7 may be by blanket insurance policy or policies.
Section 5.8.    Advances.  In the event the Borrower shall fail to, or shall fail to cause the Lessee to, maintain or cause to be maintained the full insurance coverage required by this Loan Agreement or shall fail to keep, or to cause the Lessee to keep, the Project in good repair and operating condition, normal wear and tear excepted, or shall fail to pay any tax, assessment, governmental charge, public or private utility charge or other amount to be paid by the Borrower under the Loan Documents, or the by Lessee under the Operative Documents, the Director or the Trustee may (but shall be under no obligation to) take out the required policies of insurance and pay the premiums on the same or may make such repairs or replacements as are necessary and provide for payment thereof or pay any such tax, assessment, governmental charge, public or private utility charge or other amount; and all amounts so paid or advanced therefor by the Director shall become an additional obligation of the Borrower to the Director, which amounts, together with interest thereon at the Interest Rate for Advances from the date thereof, the Borrower agrees to pay, or cause the Lessee to pay, on demand.

35

Section 5.9.    Environmental Matters.  Throughout the Loan Term, the Borrower shall require the Lessee to do following: 
(a)    ensure that the Project Site remains in compliance in all material respects with all applicable Environmental Laws; 
(b)    maintain a system at the Project Site to assure and monitor continued compliance in all material respects with all applicable Environmental Laws which system shall include periodic reviews of such compliance; 
(c)    in the event that the Lessee (i) obtains, gives or receives written notice that a release or threat of release of a “reportable quantity” (as defined in any Environmental Law) of any asbestos or asbestos-containing material, Hazardous Substance, Hazardous Waste, Toxic Chemical or Petroleum has occurred at the Project Site (any such event being hereinafter referred to as a “Hazardous Discharge”) or (ii) receives any notice of violation, request for information or other written notification that the Lessee or the Borrower is potentially responsible for investigation or cleanup of environmental conditions at the Project Site (a “Cleanup Notice”), or (iii) receives a demand letter or complaint, order, citation, or other written notice with regard to any Hazardous Discharge or violation of Environmental Laws affecting the Project Site (any of the foregoing being hereinafter referred to as an “Environmental Complaint”) from any Person, including the Ohio Environmental Protection Agency or the United States Environmental Protection Agency, within fifteen (15) Business Days, give written notice of same to the Director and Borrower detailing the facts and circumstances of which the Lessee  is aware giving rise to the Hazardous Discharge, Cleanup Notice or Environmental Complaint. Such information is to be provided solely to allow the Director to protect the Director’s security interest in the Lease, and to allow the Borrower to protect the Borrower’s interest in the Project Site and the Project, and is not intended to create nor shall it create any obligation, responsibility or liability on the part of the Director with respect thereto;
(d)    respond promptly to any Hazardous Discharge or Environmental Complaint as required by applicable Environmental Law; and 
(e)    defend and indemnify the Director and hold the Director harmless from and against all loss, liability, damage and expense, claims, costs, fines and penalties, including reasonable attorney’s fees, suffered or incurred by the Director under or on account of the noncompliance or alleged noncompliance by the Lessee or the Borrower with any Environmental Laws with respect to (i) the Project Site, (ii) any operations, actions or inactions in the conduct of operations of the Project or at the Project Site or (iii) the Provision of the Project, the Adjacent Hangar Demolition and the Related Area Improvements, including without limitation, the assertion of any lien thereunder, with respect to any Hazardous Discharge, the presence of any asbestos, asbestos-containing materials, Hazardous Substance, Hazardous Waste, Toxic Chemical or Petroleum affecting any of the Project Site, whether or not the same originates or emerges from the Project Site or any contiguous real estate, including any loss in value of the leasehold interest in the Premises as a result of the foregoing.

36

The Lessee’s obligations described above in this Section shall arise upon the discovery of the presence, other than in compliance with Environmental Laws, of any asbestos, asbestos-containing material, Hazardous Substance, Hazardous Waste, Toxic Chemical or Petroleum at the Project Site, whether or not any federal, state, or local environmental agency has taken or threatened any action in connection with the presence of any asbestos, asbestos-containing material, Hazardous Substance, Hazardous Waste, Toxic Chemical or Petroleum. The Borrower’s obligations hereunder to require the Lessee to perform the obligations and the indemnifications as described above in this Section shall survive the termination of this Loan Agreement.
The Borrower further acknowledges and agrees that in the event (i) the Director has reason to believe that a Hazardous Discharge has occurred or (ii) the Lessee receives a Cleanup Notice or an Environmental Complaint, the Director may retain, at the Borrower’s expense, an Independent Consultant to perform an overall environmental assessment and to prepare a report certifying that (a) the Project Site is not being used for, or threatened by, nor has ever been used for, or threatened by, the use, generation, treatment, storage or disposal of any asbestos or asbestos-containing material, petroleum or any hazardous or toxic chemical, material, substance or waste to which exposure is prohibited, limited or regulated by any Environmental Laws or which, even if not so regulated, is known to pose a hazard to the health or safety of the occupants of the Project Site or of property adjacent thereto, or, if the Project Site has ever been used for or threatened by any such condition, the condition has been fully remediated in compliance with all Environmental Laws and (b) the Lessee’s environmental management practices are in compliance with all Environmental Laws.  The overall environmental assessment may be done in three phases.  The Borrower represents and warrants that the Borrower has the authority to grant, and hereby does grant, to the Director, the Director’s agents, representatives, employees, consultants and contractors the right to enter the Project Site and to perform such acts as are necessary to conduct such assessment. 

[End of Article V]

37

ARTICLE V• 
DAMAGE, DESTRUCTION AND CONDEMNATION
Section 6.1.    Damage and Destruction.  If prior to full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Trust Agreement) and full payment of the State Loan and the LDI Loan, the Project shall be damaged or partially or totally destroyed by fire, flood, windstorm, or other casualty, there shall be no abatement or reduction in the amounts payable by the Borrower under this Agreement, and, to the extent that the claim for loss resulting from such damage or destruction is not greater than $100,000, the Borrower will, or will cause the Lessee to, (i) promptly repair, rebuild or restore the property damaged or destroyed with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Lessee and as will not make the Project unsuitable for the Project Purposes, and (ii) apply for such purpose so much as may be necessary of any Net Proceeds of insurance policies resulting from claims for such losses not in excess of $100,000 as well as any additional moneys of the Lessee necessary therefor.  All Net Proceeds of insurance resulting from claims for any such loss not in excess of $100,000 shall be paid to the Borrower or the Lessee, as the case may be.  
If prior to full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Trust Agreement) and full payment of the State Loan and the LDI Loan, the Project shall be destroyed (in whole or in part) or damaged by fire, flood, windstorm or other casualty to such extent that the claim for loss resulting from such destruction or damage is in excess of $100,000, the Borrower shall promptly give written notice thereof to the Director and the Trustee.  All Net Proceeds of insurance policies resulting from claims for such losses in excess of $100,000 shall, (a) so long as the Bonds shall be outstanding, be paid to and held by the Trustee in the Collateral Proceeds Account, and (b) if no Bonds shall be outstanding, be paid to and held by, or at the direction of, the Director in a separate account, whereupon, unless the Borrower shall have elected to exercise its option to prepay all amounts due under this Agreement pursuant to the provisions of Section 10.2(a) of this Agreement, (i) the Borrower will, or will cause the Lessee to, proceed to repair, rebuild or restore the property damaged or destroyed with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Lessee and as will not make the Project unsuitable for the Project Purposes, and (ii) the Trustee will disburse moneys in the Collateral Proceeds Account, or the Director will disburse such Net Proceeds, as the case may be, to or upon the direction of the Borrower, or the Lessee, as the case may be, for payment of the costs of such repair, rebuilding or restoration, either on completion thereof or, if the Borrower or the Lessee shall so request, as the work progresses.  Any such disbursements shall be made pursuant to the procedures set forth in Section 3.3 of this Agreement for disbursement of moneys in the Project Funds, including, but not limited to, the requirement that the Borrower or the Lessee, as the case may be, obtain the written approval of the Director with respect to each disbursement.  Any balance of the Net Proceeds remaining after all such disbursements for such costs held in the Collateral Proceeds Account shall be retained in the Collateral Proceeds Account.  Any balance of Net Proceeds held by, or at the direction of, the Director remaining after payment of all costs of such repair or restoration shall be paid at the direction of the Lessee.  In the event the moneys in the Collateral Proceeds Account are not sufficient to pay in full the costs of such repair, rebuilding or restoration, the Borrower nonetheless will, or will cause 

38

the Lessee to, complete the work and pay the costs thereof from its own resources.  The Borrower shall not, by reason of the payment by the Borrower or the Lessee of such excess costs, be entitled to any reimbursement from the Director or any diminution in or postponement of the amounts payable under Section 4.2, 4.3 or 4.4 of this Agreement. 
Section 6.2.    Eminent Domain.  In the event that title to or the temporary use of the Project, or any part thereof, shall be taken under the exercise of the power of eminent domain by any governmental body or by any Person acting under governmental authority, there shall be no abatement or reduction in the amounts payable by the Borrower under this Agreement, and any Net Proceeds received from any award made in such eminent domain proceedings shall be (a) if any Bonds are then outstanding, paid to and deposited by the Trustee in the Collateral Proceeds Account and (b) if no Bonds are then outstanding, paid to and deposited by, or at the direction of, the Director, in a separate account, and shall be applied by the Director or the Borrower, or the Borrower shall cause the Lessee to apply such Net Proceeds, in one or more of the following ways as shall be directed in writing by an Authorized Lessee Representative, on behalf of the Borrower:
(a)    to the restoration of the improvements located on the Project Site to substantially the same condition as they existed prior to the exercise of said power of eminent domain;
(b)    to the acquisition, by construction or otherwise, by the Borrower of other improvements suitable for the Lessee’s operation at the Project Site  (which improvements shall be deemed a part of the Project); or
(c)    to the redemption of all of the Bonds pursuant to the Trust Agreement, together with accrued interest thereon to the date of redemption upon exercise of the option to prepay authorized by Section 10.2(b) of this Agreement.
Within 90 days from the date of entry of a final order in an eminent domain proceeding granting condemnation, an Authorized Lessee Representative, on behalf of the Borrower, shall direct the Director and the Trustee in writing as to which of the ways specified in this Section the Borrower elects to have the Net Proceeds of the condemnation award applied.  Any balance of the Net Proceeds held in the Collateral Proceeds Account remaining after such application shall be retained in the Collateral Proceeds Account.  Any balance of the Net Proceeds held by, or at the direction of, the Director, shall be paid at the direction of the Lessee. 

[End of Article VI]

39

ARTICLE VI• 
SPECIAL COVENANTS AND AGREEMENTS
Section 7.1.    No Warranty of Condition or Suitability.  The Director does not make any warranty, either express or implied, as to the condition, workmanship, merchantability or capacity of the Project or any part thereof or as to its or any part’s suitability or operation for the Project Purposes.
Section 7.2.    Right of Access to the Project.  The Borrower agrees that the Director and any of the Director’s duly authorized agents shall have the right at all reasonable times to enter upon the Project Site and to examine and inspect the Project after, as long as no Event of Default exists, providing reasonable advance notice to the Borrower and the Lessee (which notice may be given orally).  The Borrower further agrees that the Director and the Director’s duly authorized agents shall have such rights of access to the Project Site and the Project as may be reasonably necessary for the proper maintenance of the Project in the event of failure by the Borrower to perform its obligations under Section 5.1 hereof.
Section 7.3    [Intentionally omitted].  

Section 7.4    Information Concerning Operations.  The Borrower shall furnish, or shall cause the Lessee to furnish, to the Director upon request, but not less frequently than the annual financial statements to be furnished pursuant to Section 2.5(b)(v) of Exhibit E of the Lease, a statement certifying to the knowledge of the Lessee (a) the number of employees of the Operating Company employed at the Air Park on the date of delivery of this Agreement; (b) the total number of employees of the Operating Company then employed at the Air Park and the Project Site; (c) the number of employees of the Operating Company at the Air Park and at the Project Site laid off or terminated at the Air Park and at the Project Site since the date of delivery of this Agreement; (d) the current number of women and minority employees employed by the Operating Company at the Air Park and at the Project Site; and (e) and such other employment, economic and statistical data concerning the Project, the Air Park and the Project Site as may reasonably be requested by the Director.  
Section 7.5    Affirmative Covenants of the Borrower.  (a) Throughout the Loan Term, the Borrower shall: 
(i)    Compliance with Lease.  Fully comply, or contractually require compliance, with all of its duties and obligations under the Lease and take such steps as may be necessary or appropriate to require the Lessee to fulfill its obligations under the Lease and promptly, and in any event within two (2) Business Days of receipt, provide the Director with a copy of any material notice or communication delivered or received by it relating to the Lease and shall immediately notify the Director of any Event of Default (as defined in the Lease) under the Lease, of which it has actual knowledge;
(ii)    Maintain Property.  Require the Lessee, as provided in the Lease, to maintain and keep the Project in good repair, working order and condition, and from 

40

time to time to make all repairs, renewals and replacements which are necessary and proper so that the business carried on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Subsection 7.5(a)(ii) shall prevent the Lessee from selling or otherwise disposing of any property as permitted by the Lease;
(iii)    Financial Information.  Furnish to the Director, or in the case of (C) and (D), cause to be furnished to the Director:
(A)    Within 180 days or promptly upon their availability thereafter, and in any event within 12 months following the end of each of its fiscal years throughout the term of the Loan Term, the Borrower shall provide the Director with annual financial statements of the Borrower. 
(B)    With each financial report of the Borrower required to be furnished under this Section, a certificate executed by the chief financial officer or fiscal officer of the Borrower stating that (A) no Event of Default has occurred and is continuing to the best of his or her knowledge and, to the knowledge of that person, no event or circumstances which would constitute an Event of Default, but for the requirement that notice be given or time elapse or both, has occurred and is continuing or, if such an Event of Default or such event or circumstances has occurred and is continuing, a statement as to the nature thereof and any action which the Borrower proposes to take with respect thereto, and that (B) no action, suit or proceeding by or against the Borrower at law or in equity, or before any governmental instrumentality or agency, is pending or, to that person’s knowledge, threatened which, if adversely determined, (1) would materially impair the right or ability of the Borrower (or to the Borrower’s knowledge, the right or ability of the Lessee) to carry on the business which is contemplated in connection with the Project, (2) would materially impair the right or ability of the Borrower (or to the Borrower’s knowledge, the right or ability of the Lessee) to perform the transactions contemplated by this Loan Agreement, the other Loan Documents or the Operative Documents or (3) would materially and adversely affect its businesses, operations, properties, assets or conditions (financial or otherwise), all as of the date of such certificate, and in each case, except as theretofore disclosed to the Director or as disclosed in such certificate. 
(C)  Promptly upon their availability, and in any event within 120 days following the end of each of ATSG’s fiscal years throughout the term of the Loan Term, the Borrower shall provide the Director with a copy of the ATSG’s consolidated balance sheet as at the end of such fiscal year, together with related consolidated statements of operations and cash flows for such fiscal year, of ATSG setting forth in comparative form the corresponding figures as at the end of or for the previous fiscal year, all in reasonable detail and all examined by and accompanied by an opinion of its independent certified public accountants to the effect that such financial statements were prepared in accordance with the generally accepted accounting principles consistently applied, and present fairly the ATSG’s financial position at the close of such period and the results of its operations for such period.  

41

(D)    With each financial report of ATSG required to be furnished under this Section, a certificate executed by the chief financial officer or fiscal officer of the ATSG stating that (A) no Event of Default has occurred and is continuing to the best of his or her knowledge and, to the knowledge of that person, no event or circumstances which would constitute an Event of Default, but for the requirement that notice be given or time elapse or both, has occurred and is continuing or, if such an Event of Default or such event or circumstances has occurred and is continuing, a statement as to the nature thereof and any action which ATSG proposes to take with respect thereto, and that (B) no action, suit or proceeding by or against ATSG, the Lessee or the Operating Company at law or in equity, or before any governmental instrumentality or agency, is pending or, to that person’s knowledge, threatened which, if adversely determined, (1) would materially impair the right or ability of ATSG (or to ATSG’s knowledge, the right or ability of the Lessee or the Operating Company) to carry on the business which is contemplated in connection with the Project, (2) would materially impair the right or ability of ATSG (or to ATSG’s knowledge, the right or ability of the Lessee or the Operating Company) to perform the transactions contemplated by this Loan Agreement, the other Loan Documents or the Operative Documents or (3) would materially and adversely affect the businesses, operations, properties, assets or conditions (financial or otherwise) of ATSG, the Lessee or the Operating Company, all as of the date of such certificate, and in each case, except as theretofore disclosed to the Director or as disclosed in such certificate; 
(E)    Such other information as the Director may reasonably request respecting the business, operations, properties or condition (financial or otherwise) of the Borrower, the Lessee, the Operating Company or ATSG; provided, however, that, with respect to the Lessee, the Operating Company or ATSG, if the Director requests material non-public information, the Director is subject to reasonable confidentiality arrangements with respect to such material non-public information;
 (iv)    Deliver Notice.  Forthwith upon learning of any of the following, deliver written notice thereof to the Director, describing the same and any steps being taken by the Borrower with respect thereto:
(A)    the occurrence of an Event of Default hereunder or an event or circumstance which would constitute an Event of Default hereunder, but for the requirement that notice be given or time elapse or both; 
(B)    any action, suit or proceeding by or against the Borrower, or, as applicable, by or against the Lessee, ATSG, the Operating Company or other user or users of the Project, at law or in equity, or before any governmental instrumentality or agency, instituted or threatened which, if adversely determined, would materially impair the right or ability of the Borrower, the Lessee, the Operating Company or other user or users of the Project, to carry on the business which is contemplated in connection with the Project or would materially impair the right or ability of the Borrower or the Lessee to perform the transactions contemplated by the Loan Documents or the Operative Documents, or would materially and 

42

adversely affect the business, operations, properties, assets or condition (financial or otherwise) of the Borrower, the Lessee, ATSG or the Operating Company; or
(C)    the occurrence of a Reportable Event, as defined in ERISA, under, or the institution of any steps to terminate, any plan maintained for the employees of the Lessee, the Operating Company or ATSG and covered by Title IV of ERISA (a “Plan”) as to which the Lessee, the Operating Company or ATSG may be liable; and 
 (v)    Inspection Rights.  Subject to the requirements of the Lease and the rights of the Lessee thereunder, permit the Director, or any agents or representatives thereof, after, as long as no Event of Default exists, providing reasonable advance written notice to the Borrower and the Lessee, to conduct periodic inspections of the Project reasonably necessary to cause the completion of the Project and thereafter for the proper maintenance of the Project in the event of failure by the Lessee to perform its obligations under the Lease.   
(b)  Throughout the Loan Term, the Borrower shall, or shall cause the Lessee to:
(i)    Taxes and Assessments.  Pay and discharge promptly, or cause to be paid and discharged promptly, when due and payable, all taxes, assessments and governmental charges or levies imposed upon the Borrower or the Lessee, and their respective income or any of their respective property, or upon any part thereof, as well as all claims of any kind (including claims for labor, materials and supplies) which, if unpaid, might by law become a lien or charge the Project, or any part thereof. Notwithstanding the preceding sentence, the Borrower or the Lessee may, at its expense, but only after prior notice to the Director, by appropriate proceedings diligently prosecuted, contest in good faith the validity or amount of any such taxes, assessments, governmental charges, levies and claims and during the period of contest, and after notice to the Director, may permit the items so contested to remain unpaid. However, if at any time the Director shall notify the Borrower, or the Lessee, as the case may be, in writing that, in the opinion of legal counsel reasonably satisfactory to the Director, by nonpayment of any such items the lien and security interest created by the Mortgage as to any part of the Project will be materially affected or the Project or any material part thereof will be subject to imminent loss or forfeiture, the Borrower shall promptly pay, or cause to be paid, such taxes, assessments, charges, levies or claims or give the Director adequate protection in regard to such risks and the Director shall have the reasonable discretion to determine the adequacy of the protection proffered;
(ii)    Maintain Insurance.  Maintain or require the Lessee and any other user or users of the Project to maintain the insurance required by this Loan Agreement and to name the Director a loss payee thereunder, as the Director’s interest may appear;
(iii)    Furnish Information.  Furnish promptly to the Director the information provided pursuant to Section 2.5(b)(v) of Exhibit E to the Lease;

43

(iv)    Zoning, Planning and Environmental Regulations.  Complete the Provision of the Project and operate and maintain the Project in such manner as to conform, in all material respects, with all applicable zoning, planning, building, environmental and other applicable governmental regulations (or variances therefrom) imposed by any Governmental Authority and as to be consistent with the purposes of the Act;
(v)    Use of Project Fund Moneys and State Loan. Use all moneys disbursed from the State Assistance Project Fund (except for any amounts transferred to the Collateral Proceeds Account pursuant to the terms of this Agreement), from the State Loan Proceeds Fund, and in respect of the LDI Loan for the payment of Allowable Costs;
(vi)    Job Creation.  The Borrower, based solely on the representations of the Lessee, has represented that the State Assistance and the State Loan together will permit the Operating Company to create 259 new full time jobs at the Project Site before the end of the three-year period after the Completion Date and secure 385 not at risk full-time jobs at the Air Park for the three-year period after the Completion Date.  If the Lessee or Operating Company fail, for reasons other than Market Conditions, to create the 259 new full time jobs at the Project Site before the end of the three-year period after the Completion Date and secure the 385 not at risk full-time jobs at the Air Park for the three-year period after the Completion Date, the Borrower shall, at the option of the Director, pay, in addition to the amounts required pursuant to the Notes, an amount equal to (A) 10% per annum, less the interest rate on the Bonds, of the outstanding principal amount of the Bonds outstanding, from time to time and (B) 10% per annum, less the interest rate on the State Loan Note, of the outstanding principal amount of the State Loan Note outstanding, from time to time.  Such amounts will be paid monthly at the time of payments under the State Loan Note; and
(vii)    Ohio Goods and Services.  Use commercially reasonable efforts to purchase goods and services from Persons located in the State.
Section 7.6    Negative Covenants of the Borrower. Throughout the Loan Term, the Borrower agrees that the Borrower shall not:
(a)    Conflicting Agreements.  Enter into any agreement containing any material provision which would be violated or breached by the performance of the Borrower obligations hereunder or under any instrument or document delivered or to be delivered by the Borrower hereunder or in connection herewith or under the Operative Documents;
(b)    Suspension of Operations.  Permit both the Lessee and the Operating Company to suspend or discontinue operation of the Project;   

44

(c)    Removal of Assets.  Remove, transfer or transport any portion of the Project or the Project Facilities from the Project Site, except as otherwise permitted by the Loan Documents or the Operative Documents; 
(d)    Amendments or Waivers with Respect to Operative Documents.  Execute any amendment or waiver with respect to the Operative Documents or the Lease, without the prior written consent of the Director;
(a)    Creation of Liens.  Create or suffer to exist any trust deed, mortgage, pledge, security interest, encumbrance or other lien affecting the Project or the Borrower’s interest in the Project except for the Permitted Encumbrances;
(b)    Insurance or Condemnation Proceeds.  Apply any proceeds received from insurance or eminent domain proceeds in a manner inconsistent with the terms of this Loan Agreement; or
(g)    Change of Business.  Enter into, or permit the Lessee or the Operating Company to enter into, any business with respect to the Project which is substantially different from that to be conducted by the Lessee or the Operating Company upon completion of the Project without the prior written consent of the Director.
Section 7.7.    Ownership of ATSG. No Person shall acquire shares of ATSG entitling such person to exercise a majority of the voting power of ATSG in the election of directors without the prior written consent of the Director, which consent shall not be unreasonably withheld or delayed provided, however, that ATSG or any parent entity may, without violating the agreement contained in this section, consolidate with or merge into another entity, or permit one or more other entities to consolidate with or merge into ATSG or any parent entity, or sell, transfer or otherwise dispose of all, or substantially all, of ATSG’s or any parent entity’s assets and thereafter dissolve if (i) the surviving, resulting or transferee entity, as the case may be, of ATSG, if any, assumes in writing all of the obligations of ATSG as a Guarantor under the Guaranty (if such surviving, resulting or transferee entity is other than ATSG); and (ii) the surviving, resulting or transferee entity, as the case may be, is an entity duly organized and validly existing under the laws of the State or duly qualified to do business therein.
Section 7.8.    Mechanics’ and Other Liens. The Borrower shall not, and shall not permit the Lessee to, suffer or permit any mechanics’ or other liens to be filed or exist against the Project nor any part thereof, nor against the Project Funds or the Collateral Proceeds Account.  If any such liens shall at any time be filed, the Borrower shall, within 90 days after notice of the filing thereof but subject to the right to contest hereinafter set forth, cause, or shall cause the Lessee to cause, the same to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or otherwise.  If the Borrower and the Lessee shall fail to cause such lien to be discharged, or to contest the validity or amount thereof, within the period aforesaid, then, in addition to any other right or remedy of the Director, the Director may, but shall not be obligated to, discharge the same either by paying the amount claimed to be due or by procuring the discharge of such lien by deposit or by bonding.  Any amount paid by the Director shall be reimbursed by the Borrower or the Lessee 

45

to the Director on demand, and if not so reimbursed on demand shall be paid by the Borrower with interest thereon at the Interest Rate for Advances from the date of payment by the Director, which amounts the Borrower agrees to pay.  Nothing in this Section shall require the Borrower or the Lessee to pay or discharge any such lien so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings, provided the Borrower or the Lessee shall have delivered to the Director an opinion of counsel, selected by the Borrower or the Lessee and reasonably acceptable to the Director, to the effect that nonpayment of any such lien during the pendency of such contest will not adversely affect the priority of the liens of the Loan Documents on the Borrower’s or the Lessee’s right, title or interest in the Project.
Section 7.9    Borrower Not to Adversely Affect Exclusion from Gross Income of Interest on Bonds.  To Borrower’s actual knowledge, the Borrower hereby represents that it has taken and caused to be taken all actions that may be required of it, alone or in conjunction with the State, for the interest on the Bonds to be and remain excluded from gross income for federal income tax purposes, and represents that it has not taken or permitted to be taken on its behalf, and covenants that it will not take or permit to be taken on its behalf, any actions that would adversely affect such exclusion under the provisions of the Code.  To the best of the Borrower’s actual knowledge, the Borrower hereby represents that it has taken and caused to be taken all actions that may be required of it to comply with the provisions of the Federal Income Tax Compliance Agreement.  The Borrower covenants that it will take and cause to be taken all actions that may be reasonably requested of it, alone or in conjunction with the State, for the interest on the Bonds to be and remain excluded from gross income for federal income tax purposes.  The Borrower covenants that it will take and cause to be taken all actions that may be requested of it to comply with the provisions of the Federal Income Tax Compliance Agreement.  
Section 7.10     Minority Hiring.  Borrower shall, and shall require the Lessee and Operating Company to, make a good faith effort to employ minority persons in the construction and operation of the Project in the same percentage as the average percentage of minority persons who reside in the county in which the Project is located and contiguous Ohio counties.  
Section 7.11    Equal Employment Opportunity.  Borrower shall not, and Borrower shall require that the Lessee and the Operating Company not, discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, disability, age, military status or ancestry.  Borrower shall ensure, and Borrower shall require the Lessee and the Operating Company to ensure, that its respective applicants for employment are considered for employment, and that its respective employees are treated during employment, without regard to their race, religion, color, sex, national origin, disability, age, military status or ancestry.  Borrower will incorporate, or cause to be incorporated, the requirements of this paragraph in all contracts for any work undertaken on the Project (other than subcontracts for standard commercial supplies or raw materials), and Borrower will require all of its contractors for any part of such work to incorporate such requirements in all subcontracts for such work.
 [End of Article VII]

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ARTICLE VIII• 
ASSIGNMENT, SELLING AND LEASING
Section 8.1.    Assignment, Sale or Lease by the Borrower.  Except pursuant to, and as provided in, the Lease, the Borrower may not assign this Agreement in whole or in part, sell or lease the Project Facilities or the Project Site in whole or in part or grant the right to occupy or use the Project Facilities or Project Site, or any part thereof, to Persons other than the Borrower or the Lessee, without the prior written consent of the Director.
Section 8.2.    Pledge by the Director.  The Director has pledged all moneys receivable under or pursuant to this Agreement for payment of the State Assistance (except for reimbursement of expenses and indemnification by the Guarantors and except for moneys receivable for payments of the State Loan and the LDI Loan) to the Trustee pursuant to the Trust Agreement.  The Borrower hereby consents to such assignment and pledge.
[End of Article VIII]

47

ARTICLE IX• 
EVENTS OF DEFAULT AND REMEDIES
Section 9.1.    Events of Default.  Each of the following shall be an “Event of Default”:
(a)    Failure by the Borrower to pay when due any installment of principal, interest, Additional Payment, or any combination thereof under this Loan Agreement or the Notes on or prior to the date on which such payment is due and payable or failure to pay upon demand any other amounts required to be paid to the Director or the Trustee under the Loan Documents; or  
(b)    Failure to make any payment (other than a payment specified in subsection (a) above) under any of the other Loan Documents; or
(c)    Failure by the Borrower to observe and perform any term, covenant or agreement contained in this Loan Agreement (other than as required pursuant to subsections (a) and (b) above) or any other Loan Document, and continuation of such failure for thirty (30) days after written notice thereof shall have been given to the Borrower and the Lessee by the Director, or for such longer period as the Director may agree to in writing (unless the Borrower or the Lessee is proceeding with all reasonable efforts to cure any such default, in which event such effort by the Borrower or the Lessee does not exceed one hundred twenty (120) days); or  
(d)    Any representation or warranty made by the Borrower or any of the Borrower’s officers, herein, in any other Loan Document or in connection herewith or therewith shall prove to have been incorrect in any material respect when made; or
(e)    The occurrence of an Event of Default under any of the other Loan Documents or Operative Documents; or
(f)    ATSG shall fail to pay any Indebtedness of ATSG outstanding under the Senior Loan Agreement and such failure shall continue after the applicable cure or grace period, if any, specified in the agreement or instrument relating to such Indebtedness; or any other default under any agreement or instrument relating to any such Indebtedness, or any other event, shall occur and shall continue after the applicable cure or grace period, if any, specified in such agreement or instrument, if the effect of such default or event is to accelerate, or to permit the acceleration of, such Indebtedness; or any such Indebtedness shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; or
(g)    the Lessee, ATSG or the Operating Company, respectively, shall: (i) admit in writing its inability to pay its debts generally as such debts become due; (ii) (A) commence a voluntary bankruptcy case concerning it or (B) have an involuntary bankruptcy case commenced against it and either have an order of insolvency or reorganization entered against it or have the case remain undismissed and unstayed for 90 days; (iii) commence any other proceeding under any reorganization, arrangement, readjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect and either have an order entered against it thereunder or remain undismissed or unstayed for 90 days or there is 

48

commenced against it any such proceeding which remains undismissed or unstayed for 90 days; (iv) be adjudicated insolvent or bankrupt; (v) make a general assignment for the benefit of creditors; (vi) have a receiver, trustee or custodian appointed for the whole or any substantial part of its property or a receiver, trustee or custodian or any other officer or representative of the court or of creditors, or any court, government officer or agency shall take and hold possession of any substantial part of its property; or (vii) take any other action for the purpose of effecting the foregoing; or
(h)    judgments or orders for the payment of money in excess of $15,000,000 (to the extent not paid or covered by insurance as to which the relevant insurance company has acknowledged coverage), in the aggregate, shall be rendered against the Lessee, ATSG or the Operating Company and such judgments or orders shall not have been vacated, discharged, stayed or bonded pending appeal within 45 days from the entry thereof; or 
(i)    any “accumulated funding deficiency”, as defined in Section 302 of ERISA, shall exist with respect to any of ERISA Plans of the Lessee, ATSG or the Operating Company.  
The foregoing provisions of subsection (c) only of this Section are subject to the following limitations:  if by reason of Force Majeure the Borrower, the Lessee, ATSG or the Operating Company is unable in whole or in part to perform or observe the Borrower’s obligations under this Loan Agreement, other than the Borrower’s obligation to make payments required hereunder, or the obligations of the Lessee, ATSG or the Operating Company to make payments under the Lease, the Operating Sublease or the Guaranty, the Borrower shall not be deemed in default during the continuance of such inability, including a reasonable time for the removal of the effect thereof.
The Borrower shall, or shall cause the Lessee, ATSG or the Operating Company to, promptly give notice to the Director of the existence of an event of Force Majeure and shall use the Borrower’s commercially reasonable efforts, and shall cause the Lessee, ATSG and the Operating Company to use their respective commercially reasonable efforts, to remove the effect thereof; provided, that the settlement of strikes or other industrial disturbances shall be entirely within the reasonable business discretion of the Borrower or the Lessee, ATSG or the Operating Company, as the case may be.
Section 9.2.    Remedies.  If an Event of Default shall have occurred and be continuing, the Director, at any time, at the Director's election, may exercise any or all or any combination of the remedies conferred upon or reserved to the Director under this Loan Agreement, the Notes, any of the other Loan Documents or any instrument or document collateral thereto, or now or hereafter existing at law, or in equity or by statute.  Subject to the foregoing, any or all of the following remedies may be exercised:
(a)    If the State Assistance, the State Loan or the LDI Loan have not been disbursed, in whole or in part, termination of any and all of the Director’s obligations under this Agreement;
(b)    Declaration that the entire unpaid balance of all amounts owed to the Director are immediately due and payable, whereupon the same shall become immediately due and payable, without notice or demand, such notice or demand being expressly waived by the Borrower;

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(c)    Direction to the Trustee, in writing, to transfer any amounts remaining in the State Assistance Project Fund and the Capitalized Interest Account to the Collateral Proceeds Account and to transfer any amounts remaining in the State Loan Proceeds Fund to the Director;
(d)    Exercise of all or any rights and remedies as the Director may have under this Loan Agreement, the Notes, any of the other Loan Documents, or any instrument or document collateral thereto;
(e)    Inspection, examination and copying of the books, records, accounts and financial data of the Lessee/Operating Company/ATSG or the Borrower (but solely with respect to the Project as to the Borrower); 
(f)    Exercise of any rights, remedies and powers the Director may have at law or in equity as may appear necessary or desirable to collect all amounts then due and thereafter to become due under this Agreement, the Notes, any of the other Loan Documents or any instrument or document collateral thereto or to enforce the performance and observance of any other obligation, agreement  or covenant of the Borrower under this Agreement, the Notes, any of the other Loan Documents or any instrument or document collateral thereto, including, without limitation, as a secured party under the UCC or other similar laws in effect; and 
(a)    The Director may take whatever action at law or in equity as may appear necessary or desirable to collect the amounts then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of the Borrower under this Loan Agreement.
Any amounts collected pursuant to action taken under this Section shall be paid first into the Collateral Proceeds Account and applied in accordance with the provisions of the Trust Agreement or, if the Bonds have been fully paid (or provision for payment thereof has been made in accordance with the provisions of the Trust Agreement) then to all other amounts payable thereunder and under the Loan Documents, and finally, if all such amounts have been fully paid, as directed by the Authorized Lessee Representative.
Section 9.3.    No Remedy Exclusive.  No remedy conferred upon or reserved to the Director by this Loan Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Loan Agreement, each other Loan Document and any instrument or document collateral thereto or now or hereafter existing at law or in equity or by statute.  No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient.  In order to entitle the Director to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than such notice as may be expressly provided for herein or required by law.
Section 9.4.    Agreement to Pay Attorneys’ Fees and Expenses.  If an Event of Default shall occur and the Director shall incur expenses, including reasonable attorneys’ fees, in connection with the enforcement of this Loan Agreement or any of the other Loan Documents or any instrument or 

50

document collateral thereto or the collection of sums due thereunder, the Borrower shall reimburse the Director for the expenses so incurred upon demand.  If any such expenses are not so reimbursed, the amount thereof, together with interest thereon from the date of demand for payment at the Interest Rate for Advances, shall, to the extent permitted by law, constitute additional indebtedness secured hereby and by the Trust Agreement and the other Loan Documents, and in any action brought to collect such indebtedness or enforce the Loan Documents, the Director shall be entitled to seek the recovery of such expenses in such action.
Section 9.5.    No Additional Waiver Implied by One Waiver.  No failure by the Director to insist upon the strict performance by the Borrower of any provision hereof shall constitute a waiver of the Director’s right to strict performance and no express waiver shall be deemed to apply to any other existing or subsequent right to remedy the failure by the Borrower to observe or comply with any provision hereof.
Section 9.6.    Waiver of Appraisement, Valuation, Etc.  In the event the Borrower should default under any of the provisions of this Loan Agreement, the Borrower agrees to waive, to the extent it may lawfully do so, the benefit of all appraisement, valuation, stay, extension or redemption laws now or hereafter in force, and all right of appraisement and redemption to which it may be entitled.
[End of Article IX]

51

ARTICLE X 
REDEMPTION OF BONDS; PREPAYMENT OF LOANS
Section 10.1.Redemption of Bonds.
(a)If the Bonds are then callable, the Director, at the written request at any time of the Borrower, shall forthwith take all steps that may be necessary under the applicable redemption provisions of the Trust Agreement to effect redemption of all or part of then outstanding Bonds, as may be specified by the Borrower, on the earliest redemption date on which such redemption may be made under such applicable provisions, if the Borrower shall then have deposited, or caused to be deposited, with the Trustee moneys sufficient to pay the principal of and premium, if any, and interest due or to become due on such redemption date with respect to the Bonds as to which such request is made.  The Borrower must make that request at the direction of the Lessee, and may only make that request at the direction of the Lessee.  
(b)At the Director’s election upon the occurrence of an Event of Default, the Director may take all steps that may be necessary under the applicable redemption provisions of the Trust Agreement to effect redemption of all or part of the then outstanding Bonds in accordance with Section 5 of the Supplement.  
Section 10.2.Optional Prepayment of State Loan, State Assistance, and LDI Loan.  The Borrower shall have the right to prepay, in whole or in part, the State Loan and the LDI Loan at any time without penalty. The Borrower must make such prepayment at the direction of the Lessee, provided that the Lessee provides the monies for such prepayment, and may only make such prepayment at the direction of the Lessee.  
The Borrower shall have, and is hereby granted, the option to prepay, at the direction of the Lessee, all amounts due hereunder with respect to the State Assistance prior to the full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Trust Agreement), if any of the following shall have occurred:
(a)The Project shall have been damaged or destroyed (i) to such extent that it cannot be reasonably restored within a period of six months to the condition thereof immediately preceding such damage or destruction, or (ii) to such extent that the Lessee is thereby prevented from carrying on its normal operations for a period of six consecutive months. 
(b)Title to, or the temporary use of, all or substantially all of the Project shall have been taken under the exercise of the power of eminent domain by any governmental authority, or Person acting under governmental authority (including such a taking or takings as results in the Lessee being thereby prevented from carrying on its normal operations therein for a period of six consecutive months). 
To exercise such option, the Borrower shall, at the direction of the Lessee, within 90 days following the event authorizing the exercise of such option, give written notice to the Director and 

52

the Trustee specifying therein the date of prepayment, which date shall be not less than 45 nor more than 90 days from the date such notice is mailed, and shall make arrangements satisfactory to the Trustee for the giving of the required notice of redemption, in which arrangements Director shall cooperate.  The prepayment amount payable by the Borrower in the event of its exercise of the option granted in this Section 10.2, shall be the sum of the following:
(i)An amount of money which, when added to (i) the moneys and investments held to the credit of the Collateral Proceeds Account and the Primary Reserve Account and (ii) the aggregate loan payments made by the Borrower and not theretofore applied to the payment of principal of or interest on the Bonds, will be sufficient pursuant to the provisions of the Trust Agreement, to pay and discharge all then outstanding Bonds on the date of prepayment of the State Assistance, plus
(ii)An amount of money equal to the Trustee’s fees and expenses, to the extent payable by the Borrower pursuant to this Agreement, accrued and to accrue until such final payment and redemption of the Bonds.
In the event of the exercise of the option granted in this Section, any Net Proceeds of insurance or condemnation received by the Trustee after prepayment of the State Loan and the State Assistance shall be paid to the Borrower, notwithstanding any provision of Section 6.1 and 6.2 hereof. 
Section 10.3    Mandatory Redemption in Event of a Determination of Taxability.  If, as provided in the Bonds and the Trust Agreement, the Bonds become subject to a Determination of Taxability, the Borrower shall deliver to the Trustee, upon the date requested by the Trustee, an amount sufficient to redeem the Bonds in whole or in part in accordance with the provisions for that redemption set forth in the Supplement.
Section 10.4    Mandatory Redemption.  The Borrower shall deliver to the Trustee the moneys needed to redeem the Bonds in accordance with any mandatory redemption provisions relating to the Bonds as may be set forth in the Supplement
Section 10.5    Mandatory Prepayment of State Loan, State Assistance and LDI Loan.  The Borrower shall be required to prepay the State Loan, the State Assistance and the LDI Loan if (i) the Lessee terminates operation of any facilities at the Project Site, and (ii) the Lessee does not relocate such facility to another location in the State of Ohio within thirty (30) days after the termination referred to in clause (i) or such later date as may be permitted by the Director within its reasonable discretion.
If the State Loan and the LDI Loan are required to be prepaid in accordance with this Section 10.5, the Borrower shall pay the outstanding principal amount thereof plus accrued interest to the date of prepayment to the Director not later than ten (10) days after the date on which the prepayment obligation is established.
If the State Assistance is required to be prepaid in accordance with this Section 10.5, the Borrower shall, within ten (10) days after the date on which the prepayment obligation is established, give written notice to the Director and to the Trustee specifying therein at the direction of the Lessee 

53

the date of closing such prepayment, which date shall be not less than 45 nor more than 90 days from the date such notice is mailed, and shall make arrangements satisfactory to the Trustee for the giving of the required notice of redemption, in which arrangements Director shall cooperate.  The prepayment amount payable by the Borrower in the event of the mandatory prepayment required by this Section 10.5, shall be the sum of the following:
(a)    An amount of money which, when added to (i) the moneys and investments held to the credit of the Collateral Proceeds Account and the Primary Reserve Account and (ii) the aggregate loan payments made by the Borrower and not theretofore applied to the payment of principal of or interest on the Bonds, will be sufficient pursuant to the provisions of the Trust Agreement, to pay and discharge all then outstanding Bonds on the date of prepayment of the State Assistance; plus
(b)    An amount of money equal to the Trustee’s fees and expenses, to the extent payable by the Borrower pursuant to this Agreement, accrued and to accrue until such final payment and redemption of the Bonds.
Section 10.6    Option to Defease Bonds.  Provided no Event of Default has occurred and is existing, the Borrower may, if and only if the Borrower shall have been directed by the Lessee so to do, instruct the Trustee to apply any moneys furnished to the Trustee by the Borrower or the Lessee, but not constituting payments due under the Notes or under Article IV of this Loan Agreement, to any of the following purposes:
(a)    Purchase of Bonds in the open market at prices not greater than their fair market value;
(b)    Redemption of Bonds pursuant to the optional redemption provisions thereof; or
(c)    Defeasance of Bonds pursuant to Article IX of the Trust Agreement.
If the sum of the amounts in the Collateral Proceeds Account and the Primary Reserve Account, when added to the amount delivered by the Borrower or the Lessee to the Trustee for application in accordance with this Section, is sufficient to purchase for cancellation, optionally redeem or defease all of the Outstanding Bonds, the Trustee shall, at the direction of the Authorized Lessee Representative, apply moneys in the Collateral Proceeds Account and the Primary Reserve Account for any of such purposes. 
[End of Article X]

54

ARTICLE XI 
MISCELLANEOUS
Section 11.1.Termination of Agreement.  This Loan Agreement shall be in full force and effect from the date hereof until the end of the Loan Term, at which time the obligations of the Director and the Borrower hereunder shall terminate, provided that any obligations of the Borrower with respect to the payment of costs and expenses under this Loan Agreement shall survive such termination and continue in effect until such costs and expenses are paid.
Section 11.2.Amounts Remaining in Collateral Proceeds Account and Primary Reserve Account.  It is agreed by the parties hereto that after payment in full of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Trust Agreement), the State Loan Note, the LDI Loan Note and the fees, charges and expenses of the Trustee and the Director and all other amounts required to be paid hereunder, any amounts remaining in the Collateral Proceeds Account or the Primary Reserve Account upon expiration or sooner cancellation or termination of this Loan Agreement shall belong to and be paid to the Lessee by the Trustee.
Section 11.3.Notices.  All notices, certificates, requests or other communications hereunder shall be in writing and shall be deemed sufficiently given when mailed by registered or certified mail, postage prepaid, addressed to the recipient at the appropriate Notice Address, or sent and confirmed received by telex, telecopy or similar means of electronic or facsimile transmission to the Notice Address.  A duplicate copy of each notice, certificate, request or other communication given hereunder to the Director, the Borrower, the Lessee, ATSG, the Operating Company or the Trustee shall also be given to the others.  The Borrower, the Director, the Lessee ATSG, the Operating Company and the Trustee may, by notice given hereunder, change a Notice Address or designate any further addresses to which subsequent notices, certificates, requests or other communications shall be sent.
Section 11.4.Binding Effect.  This Loan Agreement shall inure to the benefit of and shall be binding upon the Director, the Borrower and their respective successors and permitted assigns, subject, however, to the limitations contained in Section 8.1 hereof, and subject to the further limitations, as set forth on page 1 of this Loan Agreement, that any obligation of the Director created by or arising out of this Loan Agreement shall not be a general debt of the Director or the State but shall be payable solely out of the proceeds derived from this Loan Agreement.
Section 11.5.Extent of Covenants of the Director; No Personal Liability.  All covenants, stipulations, obligations and agreements of the Director contained in this Loan Agreement shall be effective to the extent authorized and permitted by applicable law.  No such covenant, stipulation, obligation or agreement shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future Director in other than such Director’s official capacity acting pursuant to the Act.
Section 11.6.Amendments, Changes and Modifications.  This Loan Agreement may not be amended or supplemented except by an instrument in writing executed by the Director and the 

55

Borrower and with the written consent of the Lessee; provided however, that the Director may waive compliance by Borrower with any of its obligations hereunder without the consent of the Lessee.
Section 11.7.Execution Counterparts.  This Loan Agreement may be executed in any number of counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same instrument.  Copies (photostatic, facsimile or otherwise) of any party’s signature to this Agreement shall be deemed to be an original, and may be relied on to the same extent as an original signature.
Section 11.8.Severability.  If any provision of this Loan Agreement, or any covenant, obligation or agreement contained herein is determined by a court to be void or unenforceable, such determination shall not affect any other valid provision, covenant, obligation or agreement, each of which shall be construed and enforced as if such invalid or unenforceable, provision, covenant, obligation or agreement were not contained herein.  Such invalidity or unenforceability shall not affect any valid or enforceable application thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law.
Section 11.9.Captions.  The captions or headings in this Loan Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Loan Agreement.
Section 11.10.Governing Law.  This Loan Agreement shall be deemed to be a contract made under the laws of the State of Ohio and for all purposes shall be governed by and construed in accordance with the laws of the State of Ohio.
Section 11.11.Actions by Borrower.  The parties agree that in any instance where the Borrower is authorized or permitted to act hereunder, the Lessee and/or the Operating Company shall be entitled to perform such action on behalf of the Borrower, and the Director and the Borrower shall recognize such performance for all purposes hereunder.

[End of Article XI]

56

IN WITNESS WHEREOF, the Director and the Borrower have caused this Loan Agreement to be executed in their respective names by their duly authorized officers, all as of the date first above written.
DIRECTOR OF DEVELOPMENT SERVICES AGENCY OF THE STATE OF OHIO, ACTING ON BEHALF OF THE STATE 

By: /s/ M. Beth Trombold     
M. Beth Trombold    
Assistant Director    

CLINTON COUNTY PORT AUTHORITY

By: /s/ Kevin J. Carver            
Kevin J. Carver    
Executive Director    

And: /s/ David C. Hockaday    
David C. Hockaday    
Chariman    

836255v20

57

CERTIFICATE
The undersigned Fiscal Officer of the Borrower under the foregoing Loan Agreement hereby certifies that the monies required to meet the obligations of the Borrower under the foregoing Loan Agreement during the year 2012 have been lawfully appropriated by the Board of Directors of the Borrower for such purposes and are in the treasury of the Borrower or in the process of collection to the credit of an appropriate fund, free of any previous encumbrances.  This Certificate is given in compliance with Sections 5705.41 and 5705.44, Ohio Revised Code.
Dated: December 1,  2012     /s/ Brian C. Smith    
Fiscal Officer
Clinton County Port Authority

58

EXHIBIT A-1

Form of State Loan Note
United States of America
State of Ohio
County of Clinton
Clinton County Port Authority
Taxable State Loan Revenue Bond (Chapter 166 Loan Program) Series 2012
(Clinton County Port Authority – AMES Project)
$4,000,000    December __, 2012
The Clinton County Port Authority (the “Borrower”), a body corporate and politic, and a port authority duly created and validly existing under the laws of the State of Ohio, for value received, promises to pay to the order of the Director of Development Services of the State of Ohio (the “Director”), at 77 South High Street, 28th Floor, Columbus, OH, 43215, or at such other address as may be designated in writing by the Director, but solely from the sources and in the manner referred to herein, the principal amount of Four Million Dollars ($4,000,000), with interest on the amount of principal from time to time outstanding from the Disbursement Date, as defined in the Loan Agreement dated as of December 1, 2012, between the Borrower and the Director (the “Loan Agreement”), at the rate of (a) zero percent (0%) per annum during the period from Disbursement Date through November 14, 2015 and (b) from November 15, 2015 through May 15, 2036, being the final maturity unless otherwise paid in full, at a rate of one percent (1%) per annum until the entire principal amount is paid, plus, commencing May 15, 2016, the Director’s State Loan Administrative Fee equal to 0.25% per annum of the principal balance from time to time outstanding under this Note.  Principal of and interest and service fees (calculated upon a basis of a year consisting of twelve thirty-day months) only on this Note shall be paid in semiannual installments as provided on the State Loan Payment Schedule attached to this Note. The Borrower authorizes the Director to attach the State Loan Payment Schedule to this Note following the Disbursement Date.  Principal and interest (“Debt Service Charges”) are payable when due in lawful money of the United States of America, without deduction, to the Director.  Payments of Debt Service Charges shall be made through an automated clearinghouse credit of funds to the Director, provided that the amount of the last installment shall be equal to the balance of the principal sum then outstanding, together with all interest accrued thereon and all unpaid service fees.
This Note is issued pursuant to the laws of the State of Ohio, particularly Article VIII, Section 13, of the Ohio Constitution and Sections 4582.21 to 4582.71, both inclusive, Ohio Revised Code, to resolutions duly adopted by the Board of Directors of the Borrower on October 11, 2012 (collectively, the “Legislation”), and to the Loan.  This Note is issued to evidence the Borrower’s obligation to repay the Chapter 166 direct loan made to the Borrower, pursuant to the Loan Agreement, by the Director (the “Loan”) to assist the Borrower in financing a portion of the costs of the Project, constituting certain facilities being leased to Air Transport International Limited Liability Company, a Nevada limited liability company  (the “Lessee”) constituting an eligible project, as defined in Chapter 166 of the Ohio Revised Code, all as more fully described in the Loan Agreement (the “Project”).  The Project will be subleased by the Lessee to Airborne Maintenance and Engineering Services, Inc., a Delaware corporation (the “Operating Company”).  In accordance 

A1-1

with the Loan Agreement, the proceeds of this Note will be disbursed from the Facilities Establishment Fund by the Director to The Huntington National Bank, as successor trustee (the “Trustee”) under that certain Trust Agreement dated as of April 1, 1988, between Treasurer of the State of Ohio and The Provident Bank (the “Trust Agreement”) as amended and supplemented by that certain One Hundred Twenty-Eighth Supplemental Trust Agreement, dated as of December 1, 2012 (the “Supplement”) and disbursed by the Trustee in accordance with the Supplement to pay Allowable Costs.

This Note does not of itself constitute a commitment by the Director to make any disbursement of the State Loan, as defined in the Loan Agreement, to the Borrower.  The conditions for making such a disbursement are set forth in the Loan Agreement. The disbursements made by the Director to the Borrower shall not exceed the face amount of this Note and the total amount of such disbursement is limited by and subject to the conditions for making disbursement of the State Loan as set forth in the Loan Agreement.
The annual rate of interest stated herein shall apply to a 360-day period and amounts of interest due hereunder shall be computed upon the basis of 30-day months.  Installments of Debt Service Charges and monthly service fees shall be applied first to monthly service fees, then to interest as provided herein and the balance to principal due hereunder.
The Borrower may prepay all or any portion of the principal sum hereof at any time without penalty.  All such prepayments shall be applied to the payment of the principal installments due hereon in the inverse order of their maturity, and shall be accompanied by the payment of accrued interest and monthly service fee on the amount of the prepayment to the date thereof.  Upon prepayment in full, this cancelled Note shall be provided to the Borrower.  
The payment of this Note and all interest and monthly service fees hereon is secured by the Loan Documents (as defined in the Loan Agreement), providing the Director with a first mortgage on the Lessee’s leasehold interest in the Premises described in the Mortgage (as defined in the Loan Agreement).  The covenants, conditions and agreements contained in the Loan Documents are hereby made a part of this Note.
If default be made in the payment of any installment of principal, interest or monthly service fee under this Note when any such payment shall have become due and payable, or if an “Event of Default,” as defined in the Loan Agreement, shall have occurred and be continuing, then, at the option of the Director, the entire principal sum payable hereunder and all interest and monthly service fee accrued thereon shall become due and payable at once, without demand or notice.  Upon default, the Director may increase the rate of interest to ten percent (10%) per annum.
For the period during which a default shall exist in the payment of any installment of principal, interest and monthly service fee due and payable hereunder, whether by acceleration or otherwise, a late charge equal to five percent (5%) of each such installment shall be assessed, in addition to all other sums due hereunder, for each month during which the default exists.
This Note is a duly authorized special obligation of the Borrower, issued for the purpose of paying a portion of the costs of the Project being leased by the Borrower to the Lessee pursuant to the Lease Agreement dated as of December 1, 2012 (as the same may be amended from time to time, the “Lease”) between the Borrower, as lessor, and the Lessee, as lessee.  Pursuant to the Lease, 

A1-2

the Lessee will act as the agent of the Borrower for the purpose of the Provision of the Project and the Trustee will disburse the proceeds of the Note to pay Allowable Costs in accordance with the Supplement.  Reference is made to the Lease and the Loan Agreement for a more complete description of the Project, and to the Loan Agreement for the provisions, among others, with respect to the nature and extent of the security for this Note, the rights, duties and obligations of the Borrower, the Trustee and the Director, and the terms and conditions upon which this Note is issued and secured.
The Lessee is required by the Lease to make payments of Rent (defined in the Lease) in fixed amounts in accordance with a schedule attached to the Lease to the Director to pay Debt Service Charges on this Note and certain obligations of the Borrower.  The rights of the Director under the Loan Agreement and the Mortgage are subject to the terms of the Intercreditor Agreement, dated as of December 1, 2012, between the Director and the Trustee.
The amounts payable with respect to this Note are payable solely from the Rent received pursuant to the Lease, and any other amounts derived by the Borrower from the lease, sale or other disposition of the Project and paid to the Director in accordance with the Lease, other than money received with respect to the exercise of the Unassigned Authority Rights, and from any other collateral that may from time to time be assigned to the Director to secure payment thereof, and are an obligation of the Borrower only to the extent of such moneys and any such collateral.
THIS NOTE IS NOT A GENERAL OBLIGATION, DEBT OR BONDED INDEBTEDNESS OF THE BORROWER; THE GENERAL RESOURCES OF THE BORROWER ARE NOT REQUIRED TO BE USED AND NEITHER THE GENERAL CREDIT OR TAXING POWER OF THE BORROWER ARE PLEDGED AND THE DIRECTOR HAS NOT BEEN GIVEN AND DOES NOT HAVE ANY RIGHT TO HAVE EXCISES OR TAXES LEVIED BY THE BORROWER OR BY THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION OR OTHER LOCAL AGENCY THEREOF FOR THE PAYMENT OF DEBT SERVICE CHARGES OR SERVICE CHARGES HEREON.
If any provision hereof is in conflict with any statute or rule of law of the State of Ohio or is otherwise unenforceable for any reason whatsoever, then such provision shall be deemed separable from and shall not invalidate any other provision of this Note.
If this Note is placed in an attorney’s hands for collection, or collected by suit or through the bankruptcy or probate, or any other court, either before or after maturity, there shall be paid to the holder of this Note reasonable attorney’s fees, costs and other expenses incurred by the holder in enforcing the terms of this Note.
This Note is delivered in Columbus, Ohio and shall be construed in accordance with the laws of the State of Ohio.
It is certified and recited that there have been performed and have been met in regular and due form, as required by law, all acts and conditions necessary to be performed by the Borrower  have been met (i) precedent to and in the issuing of this Note in order to make it a legal, valid and binding special obligation of the Borrower, and (ii) precedent to and in the execution and delivery by the Borrower of the Loan Agreement and the Lease; that payment in full for this Note has been received; and that no constitutional or statutory limitation has been exceeded in issuing this Note.

A1-3

IN WITNESS WHEREOF, the Board of Directors of the Clinton County Port Authority has caused this Note to be signed in the name of the Borrower and in their official capacities by the Chairman of the Board of Directors and the Executive Director of the Borrower, all as of the date first above written.
CLINTON COUNTY PORT AUTHORITY

By:                
Name:        
Title:          

And:        
Name:        
Title:        

A1-4

EXHIBIT A-2

FORM OF STATE ASSISTANCE NOTE
United States of America
State of Ohio
County of Clinton
Clinton County Port Authority
Taxable State Assistance Revenue Bond (Ohio Enterprise Bond Fund Project) Series 2012
(Clinton County Port Authority – AMES Project)
$9,055,000    December 27, 2012
The Clinton County Port Authority (the “Borrower”), a body corporate and politic, and a port authority duly created and validly existing under the laws of the State of Ohio, for value received, promises to pay to the order of the DIRECTOR OF DEVELOPMENT SERVICES OF THE STATE OF OHIO (the “Director”), acting on behalf of the State of Ohio, at 77 South High Street, 28th Floor, Columbus, Ohio 43215, or at such other address as may be designated in writing by the Director, the principal sum of Nine Million Ninety Thousand Dollars ($9,055,000), with interest on the amount of principal from time to time outstanding from the Disbursement Date, as defined in the Loan Agreement dated as of December 1, 2012, between the Borrower and the Director (the “Loan Agreement”), with the premium, if any, and interest on the unpaid balance of such principal sum from and after the date of this Note at the interest rate or interest rates borne by the State of Ohio, State Economic Development Bonds (Ohio Enterprise Bond Fund) Series 2012-9 (Clinton County Port Authority –AMES Project) (Tax-Exempt Bonds) (the “Series 2012-9 Bonds”) until the entire principal amount is paid on June 1, 2036, being the maturity date, plus in each case the monthly payment of the Trustee’s Annual Administrative Fee, equal to one-twelfth (1/12) of 0.12% of first $5,000,000 of the principal balance from time to time outstanding on the Series 2012-9 Bonds and 0.07% of the outstanding principal balance from time to time outstanding in excess of $5,000,000 and plus in each case, commencing on November 15, 2015, the monthly payment of the Director’s State Assistance Administrative Fee, equal to one-twelfth (1/12) of 0.125% of the principal balance from time to time outstanding under this Note.  Principal of and interest and such monthly service fees (calculated upon a basis of a year consisting of twelve thirty-day months) on this Note shall be paid in monthly installments on the fifteenth day of each month as provided on the State Assistance Payment Schedule attached to this Note.  Principal of, premium, if any, and interest on this Note (“Debt Service Charges”) are payable when due in lawful money of the United States of America, without deduction, to the Director. Payments shall be made through an automated clearinghouse credit of funds to the Trustee, provided that the amount of the last installment shall be equal to the balance of the principal sum then outstanding, together with all interest accrued thereon and all unpaid service fees.
This Note is issued pursuant to the laws of the State of Ohio, particularly Article VIII, Section 13, of the Ohio Constitution and Sections 4582.21 to 4582.71, both inclusive, Ohio Revised Code, to resolutions duly adopted by the Board of Directors of the Borrower on October 11, 2012 (collectively, the “Legislation”), and to the Loan.  This Note is issued to evidence the Borrower’s obligation to repay the Ohio Enterprise Bond Fund loan made to the Borrower, pursuant to the Loan Agreement, by the Director (the “Loan”) to assist the Borrower in financing a portion of the costs of the Project, constituting certain facilities being leased to Air Transport International Limited 

A2-1

Liability Company, a Nevada limited liability company  (the “Lessee”) constituting an eligible project, as defined in Chapter 166 of the Ohio Revised Code, all as more fully described in the Loan Agreement (the “Project”).  The Project will be subleased by the Lessee to Airborne Maintenance and Engineering Services, Inc., a Delaware corporation (the “Operating Company”).  In accordance with the Loan Agreement, the proceeds of this Note will be disbursed from the Facilities Establishment Fund by the Director to The Huntington National Bank, as successor trustee (the “Trustee”) under that certain Trust Agreement dated as of April 1, 1988, between Treasurer of the State of Ohio and The Provident Bank (the “Trust Agreement”) as amended and supplemented by that certain One Hundred Twenty-Eighth Supplemental Trust Agreement, dated as of December 1, 2012 (the “Supplement”) and disbursed by the Trustee in accordance with the Supplement to pay Allowable Costs.

This Note does not of itself constitute a commitment by the Director to make any disbursement of the State Assistance Amount, as defined in the Loan Agreement, to the Borrower.  The conditions for making such a disbursement are set forth in the Loan Agreement. The disbursements made by the Director to the Borrower shall not exceed the face amount of this Note and the total amount of such disbursement is limited by and subject to the conditions for making disbursement of the State Loan as set forth in the Loan Agreement.
The annual rate of interest stated herein shall apply to a 360-day period and amounts of interest due hereunder shall be computed upon the basis of 30-day months.  Installments of principal, interest and monthly service fee shall be applied first to monthly service fees, then to interest as provided herein and the balance to principal due hereunder.
The payment of principal of, premium, if any, and interest on this Note and monthly service fees hereon is secured by the Loan Documents (as defined in the Loan Agreement), providing the Director with a first mortgage lien on the Lessee’s leasehold interest in the Premises (as defined in the Loan Agreement).  The covenants, conditions and agreements contained in the Loan Documents are hereby made a part of this Note.
If default be made in the payment of any installment of principal, premium, if any, or interest or monthly service fee under this Note when any such payment shall have become due and payable, or if an “Event of Default,” as defined in the Loan Agreement, shall have occurred and be continuing, then, at the option of the Director, the entire principal sum payable hereunder and all interest and monthly service fee accrued thereon shall become due and payable at once, without demand or notice.  Upon default, the Director may increase the rate of interest to ten percent (10%) per annum.
Upon prepayment in full, this cancelled Note shall be provided to the Borrower.  
For the period during which a default shall exist in the payment of any installment of principal, interest and monthly service fee due and payable hereunder, whether by acceleration or otherwise, a late charge equal to five percent (5%) of each such installment shall be assessed, in addition to all other sums due hereunder, for each month during which the default exists.
This Note is a duly authorized special obligation of the Borrower, issued for the purpose of paying a portion of the costs of the Project being leased by the Borrower to the Lessee pursuant to the Lease Agreement dated as of December 1, 2012 (as the same may be amended from time to time, the “Lease”) between the Borrower, as lessor, and the Lessee, as lessee.  Pursuant to the Lease, 

A2-2

the Lessee will act as the agent of the Borrower for the purpose of the Provision of the Project and the Trustee will disburse the proceeds of the Note to pay Allowable Costs in accordance with the Supplement.  Reference is made to the Lease and the Loan Agreement for a more complete description of the Project, and to the Loan Agreement for the provisions, among others, with respect to the nature and extent of the security for this Note, the rights, duties and obligations of the Borrower, the Trustee and the Director, and the terms and conditions upon which this Note is issued and secured.
The Lessee is required by the Lease to make payments of Rent (defined in the Lease) in fixed amounts in accordance with a schedule attached to the Lease to the Trustee which are to pay Debt Service Charges on this Note and certain obligations of the Issuer.  The rights of the Director under the Loan Agreement and the Mortgage are subject to the terms of the Intercreditor Agreement, dated as of December 1, 2012, between the Director and the Trustee.
The amounts payable with respect to this Note are payable solely from the Rent received pursuant to the Lease, and any other amounts derived by the Borrower from the lease, sale or other disposition of the Project and paid to the Director in accordance with the Lease, other than money received with respect to the exercise of the Unassigned Authority Rights, and from any other collateral that may from time to time be assigned to the Director to secure payment thereof, and are an obligation of the Borrower only to the extent of such moneys and any such collateral.
THIS NOTE IS NOT A GENERAL OBLIGATION, DEBT OR BONDED INDEBTEDNESS OF THE BORROWER; THE GENERAL RESOURCES OF THE BORROWER ARE NOT REQUIRED TO BE USED AND NEITHER THE GENERAL CREDIT OR TAXING POWER OF THE BORROWER ARE PLEDGED AND THE DIRECTOR HAS NOT BEEN GIVEN AND DOES NOT HAVE ANY RIGHT TO HAVE EXCISES OR TAXES LEVIED BY THE BORROWER OR BY THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION OR OTHER LOCAL AGENCY THEREOF FOR THE PAYMENT OF DEBT SERVICE CHARGES OR SERVICE CHARGES HEREON.
If any provision hereof is in conflict with any statute or rule of law of the State of Ohio or is otherwise unenforceable for any reason whatsoever, then such provision shall be deemed separable from and shall not invalidate any other provision of this Note.
If this Note is placed in an attorney’s hands for collection, or collected by suit or through the bankruptcy or probate, or any other court, either before or after maturity, there shall be paid to the holder of this Note reasonable attorney’s fees, costs and other expenses incurred by the holder in enforcing the terms of this Note.
This Note is delivered in Columbus, Ohio and shall be construed in accordance with the laws of the State of Ohio.
It is certified and recited that there have been performed and have been met in regular and due form, as required by law, all acts and conditions necessary to be performed by the Borrower  have been met (i) precedent to and in the issuing of this Note in order to make it a legal, valid and binding special obligation of the Borrower, and (ii) precedent to and in the execution and delivery by the Borrower of the Loan Agreement and the Lease; that payment in full for this Note has been received; and that no constitutional or statutory limitation has been exceeded in issuing this Note.

A2-3

IN WITNESS WHEREOF, the Board of Directors of the Clinton County Port Authority has caused this Note to be signed in the name of the Borrower and in their official capacities by the Chairman of the Board of Directors and the Executive Director of the Borrower, all as of the date first above written.
CLINTON COUNTY PORT AUTHORITY

By:                
Name:        
Title:          

And:        
Name:        
Title:        

A2-4

EXHIBIT A-3

Form of LDI Loan Note 

United States of America
State of Ohio
County of Clinton
Clinton County Port Authority
Taxable State Loan Revenue Bond (Logistics & Distribution Infrastructure Loan Program) Series 2012
(Clinton County Port Authority – AMES Project)
$1,595,000    December ___, 2012
The Clinton County Port Authority (the “Borrower”), a body corporate and politic, and a port authority duly created and validly existing under the laws of the State of Ohio, for value received, promises to pay to the order of the Director of Development Services of the State of Ohio (the “Director”), at 77 South High Street, 28th Floor, Columbus, OH, 43215, or at such other address as may be designated in writing by the Director, but solely from the sources and in the manner referred to herein, the principal amount of One Million Five Hundred Ninety-Five Thousand Dollars ($1,595,000), with interest on the amount of principal from time to time outstanding from the Closing Date, as defined in the Loan Agreement dated as of December 1, 2012, between the Borrower and the Director (the “Loan Agreement”), at the rate of one percent (1%) per annum until paid, subject to terms of the Loan Agreement.  Capitalized terms not otherwise defined in this Note shall have the same meanings given them in the Loan Agreement
So long as no Event of Default has occurred and is then continuing, no principal or interest shall be due on this Note prior to the Completion Date.  Unless the Loan is forgiven as provided in Section 4.3 of the Loan Agreement, the outstanding principal balance of the Loan, together with all interest on the Loan accrued through the date of payment, shall be due and payable in full on May 1, 2014 (the “Maturity Date”).
This Note is issued pursuant to the laws of the State of Ohio, particularly Article VIII, Section 13, of the Ohio Constitution and Sections 4582.21 to 4582.71, both inclusive, Ohio Revised Code, to resolutions duly adopted by the Board of Directors of the Borrower on October 11, 2012 (collectively, the “Legislation”), and to the Loan (as defined below).  This Note is issued to evidence the Borrower’s obligation to repay the Logistics & Distribution Infrastructure Loan made to the Borrower, pursuant to the Loan Agreement, by the Director (the “Loan”) to assist the Borrower in financing a portion of the costs of the Project, constituting certain facilities being leased to Air Transport International Limited Liability Company, a Nevada limited liability company  (the “Lessee”), constituting an eligible project, as defined in Chapter 166 of the Ohio Revised Code, all as more fully described in the Loan Agreement (the “Project”).  The Project will be subleased by the Lessee to Airborne Maintenance and Engineering Services, Inc., a Delaware corporation (the “Operating Company”). In accordance with the Loan Agreement, the proceeds of this Note will be disbursed by the Director to the Borrower in accordance with the Loan Agreement to pay Allowable Costs.

A3-1

This Note does not of itself constitute a commitment by the Director to make any disbursement of the Loan to Borrower.  The conditions for making such a disbursement are set forth in the Loan Agreement.  The disbursements made by the Director to Borrower shall not exceed the face amount of this Note, and the total amount of such disbursement is limited by and subject to the conditions for making disbursement of the Loan as set forth in the Loan Agreement.
The annual rate of interest stated herein shall apply to a 360-day period and amounts of interest due hereunder shall be computed upon the basis of 30-day months.  
The Borrower may prepay all or any portion of the principal sum hereof at any time without penalty.  All such prepayments shall be applied to the payment of the principal installments due hereon in the inverse order of their maturity, and shall be accompanied by the payment of accrued interest on the amount of the prepayment to the date thereof.  Upon prepayment in full, this cancelled Note shall be provided to the Borrower.  
The payment of this Note and all interest hereon is secured by the Loan Documents (as defined in the Loan Agreement), providing the Director a first leasehold mortgage on the Lessee’s leasehold interest in the Premises described in the Mortgage (as defined in the Loan Agreement).  The covenants, conditions and agreements contained in the Loan Documents are hereby made a part of this Note.
If default be made in the payment of any installment of principal or interest under this Note when any such payment shall have become due and payable, or if an “Event of Default,” as defined in the Loan Agreement, shall have occurred and be continuing, then, at the option of the Director, the entire principal sum payable hereunder and all interest accrued thereon shall become due and payable at once, without demand or notice.  
For the period during which a default shall exist in the payment of any installment of principal or interest due and payable hereunder, whether by acceleration or otherwise, a late charge equal to five percent (5%) of each such installment shall be assessed, in addition to all other sums due hereunder, for each month during which the default exists.
This Note is a duly authorized special obligation of the Borrower, issued for the purpose of paying a portion of the costs of the Project being leased by the Borrower to the Lessee pursuant to the Lease Agreement dated as of December 1, 2012 (as the same may be amended from time to time, the “Lease”) between the Borrower, as lessor, and the Lessee, as lessee.  Pursuant to the Lease, the Operating Company will act as the agent of the Borrower for the purpose of the Provision of the Project and the Director will disburse the proceeds of the Note to pay Allowable Costs in accordance with the Loan Agreement.  Reference is made to the Lease and the Loan Agreement for a more complete description of the Project, and to the Loan Agreement for the provisions, among others, with respect to the nature and extent of the security for this Note, the rights, duties and obligations of the Borrower and the Director, and the terms and conditions upon which this Note is issued and secured.
The Lessee is required by the Lease to make payments of Rent (defined in the Lease) in fixed amounts in accordance with a schedule attached to the Lease to the Director to pay Debt Service Charges on this Note and certain obligations of the Issuer.  The rights of the Director under the Loan Agreement and the Mortgage are subject to the terms of the Intercreditor Agreement, dated 

A3-2

as of December 1, 2012, between the Director and The Huntington National Bank, as successor trustee (the “Trustee”) under that certain Trust Agreement dated as of April 1, 1988, between Treasurer of the State of Ohio and The Provident Bank (the “Trust Agreement”) as amended and supplemented by that certain One Hundred Twenty-Eighth Supplemental Trust Agreement, dated as of December 1, 2012 (the “Supplement”).
The amounts payable with respect to this Note are payable solely from the Rent received pursuant to the Lease, and any other amounts derived by the Borrower from the lease, sale or other disposition of the Project and paid to the Director in accordance with the Lease other than moneys received by the Borrower with respect to the exercise of Unassigned Authority Rights, and from any other collateral that may from time to time be assigned to the Director to secure payment thereof, and are an obligation of the Borrower only to the extent of such moneys and any such collateral.
THIS NOTE IS NOT A GENERAL OBLIGATION, DEBT OR BONDED INDEBTEDNESS OF THE BORROWER; THE GENERAL RESOURCES OF THE BORROWER ARE NOT REQUIRED TO BE USED AND NEITHER THE GENERAL CREDIT OR TAXING POWER OF THE BORROWER ARE PLEDGED AND THE DIRECTOR HAS NOT BEEN GIVEN AND DOES NOT HAVE ANY RIGHT TO HAVE EXCISES OR TAXES LEVIED BY THE BORROWER OR BY THE STATE OF OHIO OR THE TAXING AUTHORITY OF ANY POLITICAL SUBDIVISION OR OTHER LOCAL AGENCY THEREOF FOR THE PAYMENT OF DEBT SERVICE CHARGES OR SERVICE CHARGES HEREON.
If any provision hereof is in conflict with any statute or rule of law of the State of Ohio or is otherwise unenforceable for any reason whatsoever, then such provision shall be deemed separable from and shall not invalidate any other provision of this Note.
If this Note is placed in an attorney’s hands for collection, or collected by suit or through the bankruptcy or probate, or any other court, either before or after maturity, there shall be paid to the holder of this Note reasonable attorney’s fees, costs and other expenses incurred by the holder in enforcing the terms of this Note.
This Note is delivered in Columbus, Ohio and shall be construed in accordance with the laws of the State of Ohio.
It is certified and recited that there have been performed and have been met in regular and due form, as required by law, all acts and conditions necessary to be performed by the Borrower  have been met (i) precedent to and in the issuing of this Note in order to make it a legal, valid and binding special obligation of the Borrower, and (ii) precedent to and in the execution and delivery by the Borrower of the Loan Agreement and the Lease; that payment in full for this Note has been received; and that no constitutional or statutory limitation has been exceeded in issuing this Note.
IN WITNESS WHEREOF, the Board of Directors of the Clinton County Port Authority has caused this Note to be signed in the name of the Borrower and in their official capacities by the Chairman of the Board of Directors and the Executive Director of the Borrower, all as of the date first above written.
CLINTON COUNTY PORT AUTHORITY

A3-3

By:                
Name:        
Title:          

And:        
Name:        
Title:        

A3-4

EXHIBIT B

Description of Project Facilities

The building, consisting of approximately 100,000 square feet square feet, located at the legal description attached hereto, more commonly referred to as Wilmington Air Park, 145 Hunter Drive in the City of Wilmington, County of Clinton, and State of Ohio, as more particularly described in the Plans and Specifications.

B-1

EXHIBIT C

DISBURSEMENT REQUEST FORM AND COST CERTIFICATION
	
			
	
Payment Request, Certification & Trust Authorization Form

	AIR TRANSPORT INTERNATIONAL LIMITED LIABILITY COMPANY
	Request #         
	FINAL   

	145 Hunter Drive
	 
	 

	Wilmington, OH  45177
	Period Thru:         
	 

	

	 
	 

	 
	Type of Loan:         
	 

	 
	 
	 

	 
	PPN or MLN #:      
	 

	 
	 
	 

	Project Description: purchase of facilities and new infrastructure and equipment for facilities
	 
	 

	 
	 
	 

	BORROWER’S REQUEST FOR PAYMENT
	 
	 

	 
	 
	 

	1   Loan Amount   $   -   

	2.   Borrower’s Required Contribution   $   -   

	3.   Other Sources   $   -   

	4.   Total Project Costs (Line 1 = Line 2 - Line 3)   $   -   

	   (Column C on Breakout Sheet)

	5.   Retainage: (for prevailing wage, construction or when applicable)
   a. __0___%   of Loan Amount   $   -   
   b. __0___%   of Total Allowable Costs   $   -   
   Total Retainage (Line 5a = 5b)   $   0   

	6.   TOTAL ALLOWABLE COSTS LESS RETAINAGE   $   -   

	   (Line 4 less Line 5 total)

	7.   Less Previous Payment Request(s)   $   -   
      (Column F on Breakout Sheet)

	8.   CURRENT REIMBURSEMENT AMOUNT      #REF!   

	      (Column E on Breakout Sheet)

	9.   Outstanding Balance in Fund, Plus Retainage      #REF!   

	 

C-1

	
			
	
Payment Request, Certification & Trust Authorization Form

	BORROWER’S CERTIFICATION:  Air Transport International Limited Liability Company, as Construction Agent, on behalf of the Borrower hereby certifies to the State of Ohio that (i) (A) the Borrower’s representations and warranties made in the Loan Documents remain true, accurate and complete as of the date hereof in all material respects, (B) no Event of Default or event which, by notice, the passage of time or otherwise, would constitute an Event of Default, exists under the Loan Documents, (C) each item for which disbursement is requested is an Allowable Cost and is necessary for the Project, the Adjacent Hangar Demolition, or the Related Area Improvements; (D) no item for which disbursement is requested is the subject of duplicative disbursement request and (E) the Allowable Costs to be paid from the requested disbursement are capitalized under general accepted accounting principles and will be so capitalized.  The Lessee hereby certifies to the State of Ohio that (A) the Lessee’s representations and warranties made in the Operative Documents remain true, accurate and complete as of the date hereof in all material respects, (B) no Event of Default or event which, by notice, the passage of time or otherwise, would constitute an Event of Default exists under any of the Operative Documents. 
BORROWER:   Clinton County Port Authority
      By:    Air Transport International Limited Liability Company, Construction Agent
LESSEE:   Air Transport International Limited Liability Company
Signature                        Date:            
Title:                        
      (Authorized Lessee Representative, CFO, CEO or other Officer authorized to bind Borrower)

	 

C-2

	
	
	
Payment Request, Certification & Trust Authorization Form

	DIRECTOR’S CERTIFICATE FOR PAYMENT
AND CERTIFIED      #REF!   

	TRUST OFFICER WIRING INSTRUCTIONS
Pursuant to Section 8 of Series Bond Order No. R9-12 contained in the One Hundred Twenty-Eighth Supplemental Trust Agreement dated as of December 1,2012 (the “Supplemental Trust Agreement”) between the State of Ohio and The Huntington National Bank, as Trustee, and Section 3.3 of the Loan Agreement dated as of December 1, 2012 (the “Loan Agreement”) between the Director of Development Services of The State of Ohio (the “Director”) and Clinton County Port Authority (the “Borrower”), the Borrower and the Director hereby authorize The Huntington National Bank (the “Depository”), as depository of the Proceeds Account of the Project Funds established in the Supplemental Trust Agreement (the “Proceeds Account”), to pay to the person(s) listed on Exhibit A hereto out of the moneys deposited in the Proceeds Account the aggregate sum of $_________ to pay said person(s) in connection with the items listed in the Breakout Sheet, which is incorporated herein by reference.  
       State Assistance Project Fund    State Loan Proceeds Fund Acct.          Issuance Exp. Acct.  

TRUST OFFICER
Trust Officer:   Michelle D. Harmon            Trust Date: Insert         
Bank Institution:   Huntington National Bank, Trust         Expiration Date: Insert      

	Address:         7 Easton Oval, EA4E63      
City, State Zip:      Columbus, OH  43219      
Phone:         614-331-9803         
email address      michelle.harmon@huntington.com

	TRUST OFFICER WIRING INSTRUCTIONS (continued)

LESSEE’S BANKING INFORMATION
Banking Institution:   Insert Lessee’s Banking Institution         
ABA#:         Insert Lessee’s Banking Institution ABA #      
Account #:      Insert Lessee’s Account #            
Reference/Account Name:   Insert Lessee’s Account Name and/or Reference Info.   
*Important Note to All Perspective Parties to the Trust

*Funds wired to this banking institution using the above referenced wiring instruction will not be credited to your trust account nor invested at your direction until the banking institution has received a full executed copy of the Trust Agreement and all information required to comply with the U.S. Patriot Act. If such agreement and information has not been received within three (3) days after receipt of the wire transfer, this banking institution reserves the right to return the funds to the originating bank.  

The director hereby approves the amount certified and authorizes and directs the trust officer, as depository of the trust funds to disburse trust funds to the borrower to pay allowable project costs in connection with the project.
DIRECTOR OF DEVELOPMENT SERVICES, STATE OF OHIO:

Signature                        Date:            
Title:                        

C-3

	
	
	
Payment Request, Certification & Trust Authorization Form

	TRUST OFFICER’S PAYMENT
AMOUNT PAID      $   -   
(Attached explanation if amount paid differs from the amount certified.)

Check Number                        Date:            

Wire Transfer Reference Number            

TRUST OFFICER

Signature                        Date:            

Title:                     

Trust Officer:  Please email to financialincentives@development.ohio.gov or fax to Loans & Servicing office @ (614) 644-1789

C-4

EXHIBIT D
TERMS AND CONDITIONS TO DISBURSEMENT
Disbursements of the State Assistance and State Loan and LDI Loan for the Project
(a)    Each request for disbursement from the Project Funds shall be consistent with the cost budget that was prepared by the Construction Agent and accepted by the Borrower and the Director.
(b)    Prior to a disbursement of proceeds from the State Loan, all equipment to be purchased from such proceeds shall be located at the Project Site; provided that such proceeds may be disbursed for advanced progress payments if, to the satisfaction of the Director in its sole discretion, adequate alternative collateral is secured prior to such disbursement. 
(c)    The Construction Agent, on behalf of the Borrower, has received for delivery to the Director all appropriate mechanics’ lien affidavits for each of the items to be paid under this Disbursement Request.
(d)    All Disbursement Requests from the Project Funds shall be made by the Construction Agent on behalf of the Borrower, and submitted to the Director by a Disbursement Request Form signed by the Construction Agent on behalf of Borrower.
(e)    The Director and the Borrower do not assume, and are hereby expressly released and discharged by Lessee from, any and all liability or responsibility whatsoever that might or could arise out of the approval of disbursements from the Project Funds or as to the method, manner or application of such disbursements or as to any liens whatsoever that might attach to or be filed against the Project or the Project Funds.
(f)    Disbursement requests shall be made by the Construction Agent on behalf of the Borrower only once each calendar month.
(g)    The Borrower and the Lessee are in compliance with Article VII of the Loan Agreement.
(h)    Each request for disbursement may, if required by the Director, be reviewed and approved by an inspector (the “Inspector”) retained by the Director, and Borrower shall pay, or cause to be paid, the reasonable costs and expenses therefor.  
(i)    If disbursement is requested to reimburse the Borrower or the Construction Agent for Allowable Costs paid by the Borrower or the Construction Agent, the Borrower or the Construction Agent shall have furnished the Director with (1) invoices for each item of the Project acquired and (2) evidence that such costs have been paid to the equipment supplier or other appropriate party.
(j)     If disbursement is to be made directly to an equipment supplier or other appropriate party, the Construction Agent on behalf of Borrower shall have furnished the Director with invoices evidencing the amount due.

D-1

(k)     Such other documents, instruments and certifications as the Director shall reasonably request.  

	
			
	 
	 
	 

EXHIBIT E
ADJACENT HANGAR DEMOLITION

E-1

	
			
	 
	 
	 

	
			
	 
	 
	 

EXHIBIT F
RELATED AREA IMPROVEMENTS

F-1

	
			
	 
	 
	 

	
			
	 
	 
	 

	
			
	 
	 
	 

SCHEDULE 1
STATE LOAN PAYMENT SCHEDULE
	
																			
	 
	 
	166 Loan
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Total
	 
	Total
	Outstanding

	Date
	 
	Principal Payment
	Interest 
Rate
	 
	Interest Payment
	 
	Fees
	 
	Payment
	Principal

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	12/1/2012
	 
	 
	 
	 
	 
	$4,000,000.00

	5/15/2013
	$                         -
	0.00
	%
	$                         -
	$                    -
	$                      -
	$4,000,000.00

	11/15/2013
	$                         -
	0.00
	%
	$                         -
	$                    -
	$                      -
	$4,000,000.00

	5/15/2014
	$                         -
	0.00
	%
	$                         -
	$                    -
	$                      -
	$4,000,000.00

	11/15/2014
	$                         -
	0.00
	%
	$                         -
	$                    -
	$                      -
	$4,000,000.00

	5/15/2015
	$                         -
	0.00
	%
	$                         -
	$                    -
	$                      -
	$4,000,000.00

	11/15/2015
	$                         -
	0.00
	%
	$                         -
	$                    -
	$                      -
	$4,000,000.00

	5/15/2016
	$88,145.25
	1.00
	%
	$20,000.00
	$5,000.00
	$113,145.25
	$3,911,854.75

	11/15/2016
	$88,585.98
	1.00
	%
	$19,559.27
	$4,889.82
	$113,035.07
	$3,823,268.77

	5/15/2017
	$89,028.91
	1.00
	%
	$19,116.34
	$4,779.09
	$112,924.34
	$3,734,239.86

	11/15/2017
	$89,474.05
	1.00
	%
	$18,671.20
	$4,667.80
	$112,813.05
	$3,644,765.81

	5/15/2018
	$89,921.42
	1.00
	%
	$18,223.83
	$4,555.96
	$112,701.21
	$3,554,844.39

	11/15/2018
	$90,371.03
	1.00
	%
	$17,774.22
	$4,443.56
	$112,588.81
	$3,464,473.36

	5/15/2019
	$90,822.89
	1.00
	%
	$17,322.37
	$4,330.59
	$112,475.85
	$3,373,650.47

	11/15/2019
	$91,277.00
	1.00
	%
	$16,868.25
	$4,217.06
	$112,362.31
	$3,282,373.47

	5/15/2020
	$91,733.39
	1.00
	%
	$16,411.87
	$4,102.97
	$112,248.23
	$3,190,640.08

	11/15/2020
	$92,192.05
	1.00
	%
	$15,953.20
	$3,988.30
	$112,133.55
	$3,098,448.03

	5/15/2021
	$92,653.01
	1.00
	%
	$15,492.24
	$3,873.06
	$112,018.31
	$3,005,795.02

	11/15/2021
	$93,116.28
	1.00
	%
	$15,028.98
	$3,757.24
	$111,902.50
	$2,912,678.74

	5/15/2022
	$93,581.86
	1.00
	%
	$14,563.39
	$3,640.85
	$111,786.10
	$2,819,096.88

	11/15/2022
	$94,049.77
	1.00
	%
	$14,095.48
	$3,523.87
	$111,669.12
	$2,725,047.11

	5/15/2023
	$94,520.02
	1.00
	%
	$13,625.24
	$3,406.31
	$111,551.57
	$2,630,527.09

	11/15/2023
	$94,992.62
	1.00
	%
	$13,152.64
	$3,288.16
	$111,433.42
	$2,535,534.47

	5/15/2024
	$95,467.58
	1.00
	%
	$12,677.67
	$3,169.42
	$111,314.67
	$2,440,066.89

	11/15/2024
	$95,944.92
	1.00
	%
	$12,200.33
	$3,050.08
	$111,195.33
	$2,344,121.97

	5/15/2025
	$96,424.64
	1.00
	%
	$11,720.61
	$2,930.15
	$111,075.40
	$2,247,697.33

	11/15/2025
	$96,906.77
	1.00
	%
	$11,238.49
	$2,809.62
	$110,954.88
	$2,150,790.56

	5/15/2026
	$97,391.30
	1.00
	%
	$10,753.95
	$2,688.49
	$110,833.74
	$2,053,399.26

	11/15/2026
	$97,878.26
	1.00
	%
	$10,267.00
	$2,566.75
	$110,712.01
	$1,955,521.00

	5/15/2027
	$98,367.65
	1.00
	%
	$9,777.60
	$2,444.40
	$110,589.65
	$1,857,153.35

	11/15/2027
	$98,859.49
	1.00
	%
	$9,285.77
	$2,321.44
	$110,466.70
	$1,758,293.86

	5/15/2028
	$99,353.78
	1.00
	%
	$8,791.47
	$2,197.87
	$110,343.12
	$1,658,940.08

	11/15/2028
	$99,850.55
	1.00
	%
	$8,294.70
	$2,073.68
	$110,218.93
	$1,559,089.53

	5/15/2029
	$100,349.81
	1.00
	%
	$7,795.45
	$1,948.86
	$110,094.12
	$1,458,739.72

	11/15/2029
	$100,851.55
	1.00
	%
	$7,293.70
	$1,823.42
	$109,968.67
	$1,357,888.17

	5/15/2030
	$101,355.81
	1.00
	%
	$6,789.44
	$1,697.36
	$109,842.61
	$1,256,532.36

	11/15/2030
	$101,862.59
	1.00
	%
	$6,282.66
	$1,570.67
	$109,715.92
	$1,154,669.77

Schedule 1 - 1

	
																			
	5/15/2031
	$102,371.90
	1.00
	%
	$5,773.35
	$1,443.34
	$109,588.59
	$1,052,297.87

	11/15/2031
	$102,883.76
	1.00
	%
	$5,261.49
	$1,315.37
	$109,460.62
	$949,414.11

	5/15/2032
	$103,398.18
	1.00
	%
	$4,747.07
	$1,186.77
	$109,332.02
	$846,015.93

	11/15/2032
	$103,915.17
	1.00
	%
	$4,230.08
	$1,057.52
	$109,202.77
	$742,100.76

	5/15/2033
	$104,434.75
	1.00
	%
	$3,710.50
	$927.63
	$109,072.88
	$637,666.01

	11/15/2033
	$104,956.92
	1.00
	%
	$3,188.33
	$797.08
	$108,942.33
	$532,709.09

	5/15/2034
	$105,481.71
	1.00
	%
	$2,663.55
	$665.89
	$108,811.15
	$427,227.38

	11/15/2034
	$106,009.12
	1.00
	%
	$2,136.14
	$534.03
	$108,679.29
	$321,218.26

	5/15/2035
	$106,539.16
	1.00
	%
	$1,606.09
	$401.52
	$108,546.77
	$214,679.10

	11/15/2035
	$107,071.86
	1.00
	%
	$1,073.40
	$268.35
	$108,413.61
	$107,607.24

	5/15/2036
	$107,607.24
	1.00
	%
	$538.04
	$134.51
	$108,279.79
	$0.00

	 
	$4,000,000.00
	 
	$433,955.40
	$108,488.85
	$4,542,444.25
	 

	 
	 
	 
	 
	 
	 
	 

Schedule 1 - 2

SCHEDULE 2
STATE ASSISTANCE PAYMENT SCHEDULE 
	
																				
	 
	 
	 
	Total
	Capitalized
	Total

	Date
	Principal
	Interest
	Fees
	Interest
	Payment

	12/27/2012
	 
	 
	 
	 
	 

	1/15/2013
	 
	$
	25,623.35
	

	$
	756.18
	 
	($         26,379.54)
	 

	2/15/2013
	 
	$
	25,623.35
	

	$
	756.18
	 
	($         26,379.54)
	 

	3/15/2013
	 
	$
	25,623.35
	

	$
	756.18
	 
	($         26,379.54)
	 

	4/15/2013
	 
	$
	25,623.35
	

	$
	756.18
	 
	($         26,379.54)
	 

	5/15/2013
	 
	$
	25,623.35
	

	$
	756.18
	 
	($         26,379.54)
	 

	6/15/2013
	 
	$
	24,957.81
	

	$
	736.54
	 
	($         25,694.36)
	 

	7/15/2013
	 
	$
	24,957.81
	

	$
	736.54
	 
	($         25,694.36)
	 

	8/15/2013
	 
	$
	24,957.81
	

	$
	736.54
	 
	($         25,694.36)
	 

	9/15/2013
	 
	$
	24,957.81
	

	$
	736.54
	 
	($         25,694.36)
	 

	10/15/2013
	 
	$
	24,957.81
	

	$
	736.54
	 
	($         25,694.36)
	 

	11/15/2013
	 
	$
	24,957.81
	

	$
	736.54
	 
	($         25,694.36)
	 

	12/15/2013
	 
	$
	24,957.81
	

	$
	736.54
	 
	($         25,694.36)
	 

	1/15/2014
	$24,000.00
	$
	24,957.81
	

	$
	736.54
	 
	 
	$
	49,694.36
	

	2/15/2014
	$24,000.00
	$
	24,957.81
	

	$
	736.54
	 
	 
	$
	49,694.36
	

	3/15/2014
	$24,000.00
	$
	24,957.81
	

	$
	736.54
	 
	 
	$
	49,694.36
	

	4/15/2014
	$24,000.00
	$
	24,957.81
	

	$
	736.54
	 
	 
	$
	49,694.36
	

	5/15/2014
	$
	24,000.00
	 
	$
	24,957.81
	

	$
	736.54
	 
	 
	$
	49,694.36
	

	6/15/2014
	$
	23,333.33
	 
	$
	24,757.81
	

	$
	729.54
	 
	 
	$
	48,820.69
	

	7/15/2014
	$
	23,333.33
	 
	$
	24,757.81
	

	$
	729.54
	 
	 
	$
	48,820.69
	

	8/15/2014
	$
	23,333.33
	 
	$
	24,757.81
	

	$
	729.54
	 
	 
	$
	48,820.69
	

	9/15/2014
	$
	23,333.33
	 
	$
	24,757.81
	

	$
	729.54
	 
	 
	$
	48,820.69
	

	10/15/2014
	$
	23,333.33
	 
	$
	24,757.81
	

	$
	729.54
	 
	 
	$
	48,820.69
	

	11/15/2014
	$
	23,333.33
	 
	$
	24,757.81
	

	$
	729.54
	 
	 
	$
	48,820.69
	

	12/15/2014
	$
	25,000.00
	 
	$
	24,524.48
	

	$
	721.38
	 
	 
	$
	50,245.86
	

	1/15/2015
	$
	25,000.00
	 
	$
	24,524.48
	

	$
	721.38
	 
	 
	$
	50,245.86
	

	2/15/2015
	$
	25,000.00
	 
	$
	24,524.48
	

	$
	721.38
	 
	 
	$
	50,245.86
	

	3/15/2015
	$
	25,000.00
	 
	$
	24,524.48
	

	$
	721.38
	 
	 
	$
	50,245.86
	

	4/15/2015
	$
	25,000.00
	 
	$
	24,524.48
	

	$
	721.38
	 
	 
	$
	50,245.86
	

	5/15/2015
	$
	25,000.00
	 
	$
	24,524.48
	

	$
	721.38
	 
	 
	$
	50,245.86
	

	6/15/2015
	$
	25,000.00
	 
	$
	24,274.48
	

	$
	712.63
	 
	 
	$
	49,987.11
	

	7/15/2015
	$
	25,000.00
	 
	$
	24,274.48
	

	$
	712.63
	 
	 
	$
	49,987.11
	

	8/15/2015
	$
	25,000.00
	 
	$
	24,274.48
	

	$
	712.63
	 
	 
	$
	49,987.11
	

	9/15/2015
	$
	25,000.00
	 
	$
	24,274.48
	

	$
	712.63
	 
	 
	$
	49,987.11
	

	10/15/2015
	$
	25,000.00
	 
	$
	24,274.48
	

	$
	712.63
	 
	 
	$
	49,987.11
	

	11/15/2015
	$
	25,000.00
	 
	$
	24,274.48
	

	$
	712.63
	 
	 
	$
	49,987.11
	

	12/15/2015
	$
	25,000.00
	 
	$
	24,024.48
	

	$
	1,588.77
	 
	 
	$
	50,613.25
	

	1/15/2016
	$
	25,000.00
	 
	$
	24,024.48
	

	$
	1,588.77
	 
	 
	$
	50,613.25
	

	2/15/2016
	$
	25,000.00
	 
	$
	24,024.48
	

	$
	1,588.77
	 
	 
	$
	50,613.25
	

	3/15/2016
	$
	25,000.00
	 
	$
	24,024.48
	

	$
	1,588.77
	 
	 
	$
	50,613.25
	

Schedule 2 - 1

	
																				
	4/15/2016
	$
	25,000.00
	 
	$
	24,024.48
	

	$
	1,588.77
	 
	 
	$
	50,613.25
	

	5/15/2016
	$
	25,000.00
	 
	$
	24,024.48
	

	$
	1,588.77
	 
	 
	$
	50,613.25
	

	6/15/2016
	$
	25,000.00
	 
	$
	23,774.48
	

	$
	1,564.40
	 
	 
	$
	50,338.88
	

	7/15/2016
	$
	25,000.00
	 
	$
	23,774.48
	

	$
	1,564.40
	 
	 
	$
	50,338.88
	

	8/15/2016
	$
	25,000.00
	 
	$
	23,774.48
	

	$
	1,564.40
	 
	 
	$
	50,338.88
	

	9/15/2016
	$
	25,000.00
	 
	$
	23,774.48
	

	$
	1,564.40
	 
	 
	$
	50,338.88
	

	10/15/2016
	$
	25,000.00
	 
	$
	23,774.48
	

	$
	1,564.40
	 
	 
	$
	50,338.88
	

	11/15/2016
	$
	25,000.00
	 
	$
	23,774.48
	

	$
	1,564.40
	 
	 
	$
	50,338.88
	

	12/15/2016
	$
	25,833.33
	 
	$
	23,524.48
	

	$
	1,540.02
	 
	 
	$
	50,897.84
	

	1/15/2017
	$
	25,833.33
	 
	$
	23,524.48
	

	$
	1,540.02
	 
	 
	$
	50,897.84
	

	2/15/2017
	$
	25,833.33
	 
	$
	23,524.48
	

	$
	1,540.02
	 
	 
	$
	50,897.84
	

	3/15/2017
	$
	25,833.33
	 
	$
	23,524.48
	

	$
	1,540.02
	 
	 
	$
	50,897.84
	

	4/15/2017
	$
	25,833.33
	 
	$
	23,524.48
	

	$
	1,540.02
	 
	 
	$
	50,897.84
	

	5/15/2017
	$
	25,833.33
	 
	$
	23,524.48
	

	$
	1,540.02
	 
	 
	$
	50,897.84
	

	6/15/2017
	$
	25,833.33
	 
	$
	23,266.15
	

	$
	1,514.83
	 
	 
	$
	50,614.31
	

	7/15/2017
	$
	25,833.33
	 
	$
	23,266.15
	

	$
	1,514.83
	 
	 
	$
	50,614.31
	

	8/15/2017
	$
	25,833.33
	 
	$
	23,266.15
	

	$
	1,514.83
	 
	 
	$
	50,614.31
	

	9/15/2017
	$
	25,833.33
	 
	$
	23,266.15
	

	$
	1,514.83
	 
	 
	$
	50,614.31
	

	10/15/2017
	$
	25,833.33
	 
	$
	23,266.15
	

	$
	1,514.83
	 
	 
	$
	50,614.31
	

	11/15/2017
	$
	25,833.33
	 
	$
	23,266.15
	

	$
	1,514.83
	 
	 
	$
	50,614.31
	

	12/15/2017
	$
	25,833.33
	 
	$
	23,007.81
	

	$
	1,489.65
	 
	 
	$
	50,330.79
	

	1/15/2018
	$
	25,833.33
	 
	$
	23,007.81
	

	$
	1,489.65
	 
	 
	$
	50,330.79
	

	2/15/2018
	$
	25,833.33
	 
	$
	23,007.81
	

	$
	1,489.65
	 
	 
	$
	50,330.79
	

	3/15/2018
	$
	25,833.33
	 
	$
	23,007.81
	

	$
	1,489.65
	 
	 
	$
	50,330.79
	

	4/15/2018
	$
	25,833.33
	 
	$
	23,007.81
	

	$
	1,489.65
	 
	 
	$
	50,330.79
	

	5/15/2018
	$
	25,833.33
	 
	$
	23,007.81
	

	$
	1,489.65
	 
	 
	$
	50,330.79
	

	6/15/2018
	$
	26,666.67
	 
	$
	22,749.48
	

	$
	1,464.46
	 
	 
	$
	50,880.61
	

	7/15/2018
	$
	26,666.67
	 
	$
	22,749.48
	

	$
	1,464.46
	 
	 
	$
	50,880.61
	

	8/15/2018
	$
	26,666.67
	 
	$
	22,749.48
	

	$
	1,464.46
	 
	 
	$
	50,880.61
	

	9/15/2018
	$
	26,666.67
	 
	$
	22,749.48
	

	$
	1,464.46
	 
	 
	$
	50,880.61
	

	10/15/2018
	$
	26,666.67
	 
	$
	22,749.48
	

	$
	1,464.46
	 
	 
	$
	50,880.61
	

	11/15/2018
	$
	26,666.67
	 
	$
	22,749.48
	

	$
	1,464.46
	 
	 
	$
	50,880.61
	

	12/15/2018
	$
	26,666.67
	 
	$
	22,482.81
	

	$
	1,438.46
	 
	 
	$
	50,587.94
	

	1/15/2019
	$
	26,666.67
	 
	$
	22,482.81
	

	$
	1,438.46
	 
	 
	$
	50,587.94
	

	2/15/2019
	$
	26,666.67
	 
	$
	22,482.81
	

	$
	1,438.46
	 
	 
	$
	50,587.94
	

	3/15/2019
	$
	26,666.67
	 
	$
	22,482.81
	

	$
	1,438.46
	 
	 
	$
	50,587.94
	

	4/15/2019
	$
	26,666.67
	 
	$
	22,482.81
	

	$
	1,438.46
	 
	 
	$
	50,587.94
	

	5/15/2019
	$
	26,666.67
	 
	$
	22,482.81
	

	$
	1,438.46
	 
	 
	$
	50,587.94
	

	6/15/2019
	$
	26,666.67
	 
	$
	22,216.15
	

	$
	1,412.46
	 
	 
	$
	50,295.27
	

	7/15/2019
	$
	26,666.67
	 
	$
	22,216.15
	

	$
	1,412.46
	 
	 
	$
	50,295.27
	

	8/15/2019
	$
	26,666.67
	 
	$
	22,216.15
	

	$
	1,412.46
	 
	 
	$
	50,295.27
	

	9/15/2019
	$
	26,666.67
	 
	$
	22,216.15
	

	$
	1,412.46
	 
	 
	$
	50,295.27
	

	10/15/2019
	$
	26,666.67
	 
	$
	22,216.15
	

	$
	1,412.46
	 
	 
	$
	50,295.27
	

	11/15/2019
	$
	26,666.67
	 
	$
	22,216.15
	

	$
	1,412.46
	 
	 
	$
	50,295.27
	

	12/15/2019
	$
	27,500.00
	 
	$
	21,949.48
	

	$
	1,386.46
	 
	 
	$
	50,835.94
	

	1/15/2020
	$
	27,500.00
	 
	$
	21,949.48
	

	$
	1,386.46
	 
	 
	$
	50,835.94
	

Schedule 2 - 1

	
																				
	2/15/2020
	$
	27,500.00
	 
	$
	21,949.48
	

	$
	1,386.46
	 
	 
	$
	50,835.94
	

	3/15/2020
	$
	27,500.00
	 
	$
	21,949.48
	

	$
	1,386.46
	 
	 
	$
	50,835.94
	

	4/15/2020
	$
	27,500.00
	 
	$
	21,949.48
	

	$
	1,386.46
	 
	 
	$
	50,835.94
	

	5/15/2020
	$
	27,500.00
	 
	$
	21,949.48
	

	$
	1,386.46
	 
	 
	$
	50,835.94
	

	6/15/2020
	$
	27,500.00
	 
	$
	21,657.29
	

	$
	1,359.65
	 
	 
	$
	50,516.94
	

	7/15/2020
	$
	27,500.00
	 
	$
	21,657.29
	

	$
	1,359.65
	 
	 
	$
	50,516.94
	

	8/15/2020
	$
	27,500.00
	 
	$
	21,657.29
	

	$
	1,359.65
	 
	 
	$
	50,516.94
	

	9/15/2020
	$
	27,500.00
	 
	$
	21,657.29
	

	$
	1,359.65
	 
	 
	$
	50,516.94
	

	10/15/2020
	$
	27,500.00
	 
	$
	21,657.29
	

	$
	1,359.65
	 
	 
	$
	50,516.94
	

	11/15/2020
	$
	27,500.00
	 
	$
	21,657.29
	

	$
	1,359.65
	 
	 
	$
	50,516.94
	

	12/15/2020
	$
	27,500.00
	 
	$
	21,365.11
	

	$
	1,332.83
	 
	 
	$
	50,197.94
	

	1/15/2021
	$
	27,500.00
	 
	$
	21,365.11
	

	$
	1,332.83
	 
	 
	$
	50,197.94
	

	2/15/2021
	$
	27,500.00
	 
	$
	21,365.11
	

	$
	1,332.83
	 
	 
	$
	50,197.94
	

	3/15/2021
	$
	27,500.00
	 
	$
	21,365.11
	

	$
	1,332.83
	 
	 
	$
	50,197.94
	

	4/15/2021
	$
	27,500.00
	 
	$
	21,365.11
	

	$
	1,332.83
	 
	 
	$
	50,197.94
	

	5/15/2021
	$
	27,500.00
	 
	$
	21,365.11
	

	$
	1,332.83
	 
	 
	$
	50,197.94
	

	6/15/2021
	$
	28,333.33
	 
	$
	21,021.36
	

	$
	1,306.02
	 
	 
	$
	50,660.71
	

	7/15/2021
	$
	28,333.33
	 
	$
	21,021.36
	

	$
	1,306.02
	 
	 
	$
	50,660.71
	

	8/15/2021
	$
	28,333.33
	 
	$
	21,021.36
	

	$
	1,306.02
	 
	 
	$
	50,660.71
	

	9/15/2021
	$
	28,333.33
	 
	$
	21,021.36
	

	$
	1,306.02
	 
	 
	$
	50,660.71
	

	10/15/2021
	$
	28,333.33
	 
	$
	21,021.36
	

	$
	1,306.02
	 
	 
	$
	50,660.71
	

	11/15/2021
	$
	28,333.33
	 
	$
	21,021.36
	

	$
	1,306.02
	 
	 
	$
	50,660.71
	

	12/15/2021
	$
	28,333.33
	 
	$
	20,667.19
	

	$
	1,278.40
	 
	 
	$
	50,278.92
	

	1/15/2022
	$
	28,333.33
	 
	$
	20,667.19
	

	$
	1,278.40
	 
	 
	$
	50,278.92
	

	2/15/2022
	$
	28,333.33
	 
	$
	20,667.19
	

	$
	1,278.40
	 
	 
	$
	50,278.92
	

	3/15/2022
	$
	28,333.33
	 
	$
	20,667.19
	

	$
	1,278.40
	 
	 
	$
	50,278.92
	

	4/15/2022
	$
	28,333.33
	 
	$
	20,667.19
	

	$
	1,278.40
	 
	 
	$
	50,278.92
	

	5/15/2022
	$
	28,333.33
	 
	$
	20,667.19
	

	$
	1,278.40
	 
	 
	$
	50,278.92
	

	6/15/2022
	$
	29,166.67
	 
	$
	20,277.61
	

	$
	1,250.77
	 
	 
	$
	50,695.04
	

	7/15/2022
	$
	29,166.67
	 
	$
	20,277.61
	

	$
	1,250.77
	 
	 
	$
	50,695.04
	

	8/15/2022
	$
	29,166.67
	 
	$
	20,277.61
	

	$
	1,250.77
	 
	 
	$
	50,695.04
	

	9/15/2022
	$
	29,166.67
	 
	$
	20,277.61
	

	$
	1,250.77
	 
	 
	$
	50,695.04
	

	10/15/2022
	$
	29,166.67
	 
	$
	20,277.61
	

	$
	1,250.77
	 
	 
	$
	50,695.04
	

	11/15/2022
	$
	29,166.67
	 
	$
	20,277.61
	

	$
	1,250.77
	 
	 
	$
	50,695.04
	

	12/15/2022
	$
	29,166.67
	 
	$
	19,876.56
	

	$
	1,222.33
	 
	 
	$
	50,265.56
	

	1/15/2023
	$
	29,166.67
	 
	$
	19,876.56
	

	$
	1,222.33
	 
	 
	$
	50,265.56
	

	2/15/2023
	$
	29,166.67
	 
	$
	19,876.56
	

	$
	1,222.33
	 
	 
	$
	50,265.56
	

	3/15/2023
	$
	29,166.67
	 
	$
	19,876.56
	

	$
	1,222.33
	 
	 
	$
	50,265.56
	

	4/15/2023
	$
	29,166.67
	 
	$
	19,876.56
	

	$
	1,222.33
	 
	 
	$
	50,265.56
	

	5/15/2023
	$
	29,166.67
	 
	$
	19,876.56
	

	$
	1,222.33
	 
	 
	$
	50,265.56
	

	6/15/2023
	$
	30,000.00
	 
	$
	19,439.06
	

	$
	1,193.90
	 
	 
	$
	50,632.96
	

	7/15/2023
	$
	30,000.00
	 
	$
	19,439.06
	

	$
	1,193.90
	 
	 
	$
	50,632.96
	

	8/15/2023
	$
	30,000.00
	 
	$
	19,439.06
	

	$
	1,193.90
	 
	 
	$
	50,632.96
	

	9/15/2023
	$
	30,000.00
	 
	$
	19,439.06
	

	$
	1,193.90
	 
	 
	$
	50,632.96
	

	10/15/2023
	$
	30,000.00
	 
	$
	19,439.06
	

	$
	1,193.90
	 
	 
	$
	50,632.96
	

	11/15/2023
	$
	30,000.00
	 
	$
	19,439.06
	

	$
	1,193.90
	 
	 
	$
	50,632.96
	

Schedule 2 - 1

	
																				
	12/15/2023
	$
	30,000.00
	 
	$
	18,989.06
	

	$
	1,164.65
	 
	 
	$
	50,153.71
	

	1/15/2024
	$
	30,000.00
	 
	$
	18,989.06
	

	$
	1,164.65
	 
	 
	$
	50,153.71
	

	2/15/2024
	$
	30,000.00
	 
	$
	18,989.06
	

	$
	1,164.65
	 
	 
	$
	50,153.71
	

	3/15/2024
	$
	30,000.00
	 
	$
	18,989.06
	

	$
	1,164.65
	 
	 
	$
	50,153.71
	

	4/15/2024
	$
	30,000.00
	 
	$
	18,989.06
	

	$
	1,164.65
	 
	 
	$
	50,153.71
	

	5/15/2024
	$
	30,000.00
	 
	$
	18,989.06
	

	$
	1,164.65
	 
	 
	$
	50,153.71
	

	6/15/2024
	$
	30,833.33
	 
	$
	18,539.06
	

	$
	1,135.40
	 
	 
	$
	50,507.79
	

	7/15/2024
	$
	30,833.33
	 
	$
	18,539.06
	

	$
	1,135.40
	 
	 
	$
	50,507.79
	

	8/15/2024
	$
	30,833.33
	 
	$
	18,539.06
	

	$
	1,135.40
	 
	 
	$
	50,507.79
	

	9/15/2024
	$
	30,833.33
	 
	$
	18,539.06
	

	$
	1,135.40
	 
	 
	$
	50,507.79
	

	10/15/2024
	$
	30,833.33
	 
	$
	18,539.06
	

	$
	1,135.40
	 
	 
	$
	50,507.79
	

	11/15/2024
	$
	30,833.33
	 
	$
	18,539.06
	

	$
	1,135.40
	 
	 
	$
	50,507.79
	

	12/15/2024
	$
	30,833.33
	 
	$
	18,076.56
	

	$
	1,105.33
	 
	 
	$
	50,015.23
	

	1/15/2025
	$
	30,833.33
	 
	$
	18,076.56
	

	$
	1,105.33
	 
	 
	$
	50,015.23
	

	2/15/2025
	$
	30,833.33
	 
	$
	18,076.56
	

	$
	1,105.33
	 
	 
	$
	50,015.23
	

	3/15/2025
	$
	30,833.33
	 
	$
	18,076.56
	

	$
	1,105.33
	 
	 
	$
	50,015.23
	

	4/15/2025
	$
	30,833.33
	 
	$
	18,076.56
	

	$
	1,105.33
	 
	 
	$
	50,015.23
	

	5/15/2025
	$
	30,833.33
	 
	$
	18,076.56
	

	$
	1,105.33
	 
	 
	$
	50,015.23
	

	6/15/2025
	$
	31,666.67
	 
	$
	17,614.06
	

	$
	1,075.27
	 
	 
	$
	50,356.00
	

	7/15/2025
	$
	31,666.67
	 
	$
	17,614.06
	

	$
	1,075.27
	 
	 
	$
	50,356.00
	

	8/15/2025
	$
	31,666.67
	 
	$
	17,614.06
	

	$
	1,075.27
	 
	 
	$
	50,356.00
	

	9/15/2025
	$
	31,666.67
	 
	$
	17,614.06
	

	$
	1,075.27
	 
	 
	$
	50,356.00
	

	10/15/2025
	$
	31,666.67
	 
	$
	17,614.06
	

	$
	1,075.27
	 
	 
	$
	50,356.00
	

	11/15/2025
	$
	31,666.67
	 
	$
	17,614.06
	

	$
	1,075.27
	 
	 
	$
	50,356.00
	

	12/15/2025
	$
	31,666.67
	 
	$
	17,139.06
	

	$
	1,044.40
	 
	 
	$
	49,850.13
	

	1/15/2026
	$
	31,666.67
	 
	$
	17,139.06
	

	$
	1,044.40
	 
	 
	$
	49,850.13
	

	2/15/2026
	$
	31,666.67
	 
	$
	17,139.06
	

	$
	1,044.40
	 
	 
	$
	49,850.13
	

	3/15/2026
	$
	31,666.67
	 
	$
	17,139.06
	

	$
	1,044.40
	 
	 
	$
	49,850.13
	

	4/15/2026
	$
	31,666.67
	 
	$
	17,139.06
	

	$
	1,044.40
	 
	 
	$
	49,850.13
	

	5/15/2026
	$
	31,666.67
	 
	$
	17,139.06
	

	$
	1,044.40
	 
	 
	$
	49,850.13
	

	6/15/2026
	$
	32,500.00
	 
	$
	16,644.27
	

	$
	1,011.65
	 
	 
	$
	50,155.92
	

	7/15/2026
	$
	32,500.00
	 
	$
	16,644.27
	

	$
	1,011.65
	 
	 
	$
	50,155.92
	

	8/15/2026
	$
	32,500.00
	 
	$
	16,644.27
	

	$
	1,011.65
	 
	 
	$
	50,155.92
	

	9/15/2026
	$
	32,500.00
	 
	$
	16,644.27
	

	$
	1,011.65
	 
	 
	$
	50,155.92
	

	10/15/2026
	$
	32,500.00
	 
	$
	16,644.27
	

	$
	1,011.65
	 
	 
	$
	50,155.92
	

	11/15/2026
	$
	32,500.00
	 
	$
	16,644.27
	

	$
	1,011.65
	 
	 
	$
	50,155.92
	

	12/15/2026
	$
	33,333.33
	 
	$
	16,136.46
	

	$
	971.83
	 
	 
	$
	50,441.63
	

	1/15/2027
	$
	33,333.33
	 
	$
	16,136.46
	

	$
	971.83
	 
	 
	$
	50,441.63
	

	2/15/2027
	$
	33,333.33
	 
	$
	16,136.46
	

	$
	971.83
	 
	 
	$
	50,441.63
	

	3/15/2027
	$
	33,333.33
	 
	$
	16,136.46
	

	$
	971.83
	 
	 
	$
	50,441.63
	

	4/15/2027
	$
	33,333.33
	 
	$
	16,136.46
	

	$
	971.83
	 
	 
	$
	50,441.63
	

	5/15/2027
	$
	33,333.33
	 
	$
	16,136.46
	

	$
	971.83
	 
	 
	$
	50,441.63
	

	6/15/2027
	$
	33,333.33
	 
	$
	15,615.63
	

	$
	931.00
	 
	 
	$
	49,879.96
	

	7/15/2027
	$
	33,333.33
	 
	$
	15,615.63
	

	$
	931.00
	 
	 
	$
	49,879.96
	

	8/15/2027
	$
	33,333.33
	 
	$
	15,615.63
	

	$
	931.00
	 
	 
	$
	49,879.96
	

	9/15/2027
	$
	33,333.33
	 
	$
	15,615.63
	

	$
	931.00
	 
	 
	$
	49,879.96
	

Schedule 2 - 1

	
																				
	10/15/2027
	$
	33,333.33
	 
	$
	15,615.63
	

	$
	931.00
	 
	 
	$
	49,879.96
	

	11/15/2027
	$
	33,333.33
	 
	$
	15,615.63
	

	$
	931.00
	 
	 
	$
	49,879.96
	

	12/15/2027
	$
	34,166.67
	 
	$
	15,094.79
	

	$
	890.17
	 
	 
	$
	50,151.63
	

	1/15/2028
	$
	34,166.67
	 
	$
	15,094.79
	

	$
	890.17
	 
	 
	$
	50,151.63
	

	2/15/2028
	$
	34,166.67
	 
	$
	15,094.79
	

	$
	890.17
	 
	 
	$
	50,151.63
	

	3/15/2028
	$
	34,166.67
	 
	$
	15,094.79
	

	$
	890.17
	 
	 
	$
	50,151.63
	

	4/15/2028
	$
	34,166.67
	 
	$
	15,094.79
	

	$
	890.17
	 
	 
	$
	50,151.63
	

	5/15/2028
	$
	34,166.67
	 
	$
	15,094.79
	

	$
	890.17
	 
	 
	$
	50,151.63
	

	6/15/2028
	$
	34,166.67
	 
	$
	14,560.94
	

	$
	848.31
	 
	 
	$
	49,575.92
	

	7/15/2028
	$
	34,166.67
	 
	$
	14,560.94
	

	$
	848.31
	 
	 
	$
	49,575.92
	

	8/15/2028
	$
	34,166.67
	 
	$
	14,560.94
	

	$
	848.31
	 
	 
	$
	49,575.92
	

	9/15/2028
	$
	34,166.67
	 
	$
	14,560.94
	

	$
	848.31
	 
	 
	$
	49,575.92
	

	10/15/2028
	$
	34,166.67
	 
	$
	14,560.94
	

	$
	848.31
	 
	 
	$
	49,575.92
	

	11/15/2028
	$
	34,166.67
	 
	$
	14,560.94
	

	$
	848.31
	 
	 
	$
	49,575.92
	

	12/15/2028
	$
	35,000.00
	 
	$
	14,027.08
	

	$
	806.46
	 
	 
	$
	49,833.54
	

	1/15/2029
	$
	35,000.00
	 
	$
	14,027.08
	

	$
	806.46
	 
	 
	$
	49,833.54
	

	2/15/2029
	$
	35,000.00
	 
	$
	14,027.08
	

	$
	806.46
	 
	 
	$
	49,833.54
	

	3/15/2029
	$
	35,000.00
	 
	$
	14,027.08
	

	$
	806.46
	 
	 
	$
	49,833.54
	

	4/15/2029
	$
	35,000.00
	 
	$
	14,027.08
	

	$
	806.46
	 
	 
	$
	49,833.54
	

	5/15/2029
	$
	35,000.00
	 
	$
	14,027.08
	

	$
	806.46
	 
	 
	$
	49,833.54
	

	6/15/2029
	$
	35,833.33
	 
	$
	13,458.33
	

	$
	763.58
	 
	 
	$
	50,055.25
	

	7/15/2029
	$
	35,833.33
	 
	$
	13,458.33
	

	$
	763.58
	 
	 
	$
	50,055.25
	

	8/15/2029
	$
	35,833.33
	 
	$
	13,458.33
	

	$
	763.58
	 
	 
	$
	50,055.25
	

	9/15/2029
	$
	35,833.33
	 
	$
	13,458.33
	

	$
	763.58
	 
	 
	$
	50,055.25
	

	10/15/2029
	$
	35,833.33
	 
	$
	13,458.33
	

	$
	763.58
	 
	 
	$
	50,055.25
	

	11/15/2029
	$
	35,833.33
	 
	$
	13,458.33
	

	$
	763.58
	 
	 
	$
	50,055.25
	

	12/15/2029
	$
	35,833.33
	 
	$
	12,876.04
	

	$
	719.69
	 
	 
	$
	49,429.06
	

	1/15/2030
	$
	35,833.33
	 
	$
	12,876.04
	

	$
	719.69
	 
	 
	$
	49,429.06
	

	2/15/2030
	$
	35,833.33
	 
	$
	12,876.04
	

	$
	719.69
	 
	 
	$
	49,429.06
	

	3/15/2030
	$
	35,833.33
	 
	$
	12,876.04
	

	$
	719.69
	 
	 
	$
	49,429.06
	

	4/15/2030
	$
	35,833.33
	 
	$
	12,876.04
	

	$
	719.69
	 
	 
	$
	49,429.06
	

	5/15/2030
	$
	35,833.33
	 
	$
	12,876.04
	

	$
	719.69
	 
	 
	$
	49,429.06
	

	6/15/2030
	$
	36,666.67
	 
	$
	12,293.75
	

	$
	675.79
	 
	 
	$
	49,636.21
	

	7/15/2030
	$
	36,666.67
	 
	$
	12,293.75
	

	$
	675.79
	 
	 
	$
	49,636.21
	

	8/15/2030
	$
	36,666.67
	 
	$
	12,293.75
	

	$
	675.79
	 
	 
	$
	49,636.21
	

	9/15/2030
	$
	36,666.67
	 
	$
	12,293.75
	

	$
	675.79
	 
	 
	$
	49,636.21
	

	10/15/2030
	$
	36,666.67
	 
	$
	12,293.75
	

	$
	675.79
	 
	 
	$
	49,636.21
	

	11/15/2030
	$
	36,666.67
	 
	$
	12,293.75
	

	$
	675.79
	 
	 
	$
	49,636.21
	

	12/15/2030
	$
	37,500.00
	 
	$
	11,697.92
	

	$
	630.88
	 
	 
	$
	49,828.79
	

	1/15/2031
	$
	37,500.00
	 
	$
	11,697.92
	

	$
	630.88
	 
	 
	$
	49,828.79
	

	2/15/2031
	$
	37,500.00
	 
	$
	11,697.92
	

	$
	630.88
	 
	 
	$
	49,828.79
	

	3/15/2031
	$
	37,500.00
	 
	$
	11,697.92
	

	$
	630.88
	 
	 
	$
	49,828.79
	

	4/15/2031
	$
	37,500.00
	 
	$
	11,697.92
	

	$
	630.88
	 
	 
	$
	49,828.79
	

	5/15/2031
	$
	37,500.00
	 
	$
	11,697.92
	

	$
	630.88
	 
	 
	$
	49,828.79
	

	6/15/2031
	$
	38,333.33
	 
	$
	10,760.42
	

	$
	584.94
	 
	 
	$
	49,678.69
	

	7/15/2031
	$
	38,333.33
	 
	$
	10,760.42
	

	$
	584.94
	 
	 
	$
	49,678.69
	

Schedule 2 - 1

	
																				
	8/15/2031
	$
	38,333.33
	 
	$
	10,760.42
	

	$
	584.94
	 
	 
	$
	49,678.69
	

	9/15/2031
	$
	38,333.33
	 
	$
	10,760.42
	

	$
	584.94
	 
	 
	$
	49,678.69
	

	10/15/2031
	$
	38,333.33
	 
	$
	10,760.42
	

	$
	584.94
	 
	 
	$
	49,678.69
	

	11/15/2031
	$
	38,333.33
	 
	$
	10,760.42
	

	$
	584.94
	 
	 
	$
	49,678.69
	

	12/15/2031
	$
	39,166.67
	 
	$
	9,802.08
	

	$
	537.98
	 
	 
	$
	49,506.73
	

	1/15/2032
	$
	39,166.67
	 
	$
	9,802.08
	

	$
	537.98
	 
	 
	$
	49,506.73
	

	2/15/2032
	$
	39,166.67
	 
	$
	9,802.08
	

	$
	537.98
	 
	 
	$
	49,506.73
	

	3/15/2032
	$
	39,166.67
	 
	$
	9,802.08
	

	$
	537.98
	 
	 
	$
	49,506.73
	

	4/15/2032
	$
	39,166.67
	 
	$
	9,802.08
	

	$
	537.98
	 
	 
	$
	49,506.73
	

	5/15/2032
	$
	39,166.67
	 
	$
	9,802.08
	

	$
	537.98
	 
	 
	$
	49,506.73
	

	6/15/2032
	$
	40,000.00
	 
	$
	8,822.92
	

	$
	490.00
	 
	 
	$
	49,312.92
	

	7/15/2032
	$
	40,000.00
	 
	$
	8,822.92
	

	$
	490.00
	 
	 
	$
	49,312.92
	

	8/15/2032
	$
	40,000.00
	 
	$
	8,822.92
	

	$
	490.00
	 
	 
	$
	49,312.92
	

	9/15/2032
	$
	40,000.00
	 
	$
	8,822.92
	

	$
	490.00
	 
	 
	$
	49,312.92
	

	10/15/2032
	$
	40,000.00
	 
	$
	8,822.92
	

	$
	490.00
	 
	 
	$
	49,312.92
	

	11/15/2032
	$
	40,000.00
	 
	$
	8,822.92
	

	$
	490.00
	 
	 
	$
	49,312.92
	

	12/15/2032
	$
	41,666.67
	 
	$
	7,822.92
	

	$
	441.00
	 
	 
	$
	49,930.58
	

	1/15/2033
	$
	41,666.67
	 
	$
	7,822.92
	

	$
	441.00
	 
	 
	$
	49,930.58
	

	2/15/2033
	$
	41,666.67
	 
	$
	7,822.92
	

	$
	441.00
	 
	 
	$
	49,930.58
	

	3/15/2033
	$
	41,666.67
	 
	$
	7,822.92
	

	$
	441.00
	 
	 
	$
	49,930.58
	

	4/15/2033
	$
	41,666.67
	 
	$
	7,822.92
	

	$
	441.00
	 
	 
	$
	49,930.58
	

	5/15/2033
	$
	41,666.67
	 
	$
	7,822.92
	

	$
	441.00
	 
	 
	$
	49,930.58
	

	6/15/2033
	$
	42,500.00
	 
	$
	6,781.25
	

	$
	389.86
	 
	 
	$
	49,671.21
	

	7/15/2033
	$
	42,500.00
	 
	$
	6,781.25
	

	$
	389.86
	 
	 
	$
	49,671.21
	

	8/15/2033
	$
	42,500.00
	 
	$
	6,781.25
	

	$
	389.86
	 
	 
	$
	49,671.21
	

	9/15/2033
	$
	42,500.00
	 
	$
	6,781.25
	

	$
	389.86
	 
	 
	$
	49,671.21
	

	10/15/2033
	$
	42,500.00
	 
	$
	6,781.25
	

	$
	389.86
	 
	 
	$
	49,671.21
	

	11/15/2033
	$
	42,500.00
	 
	$
	6,781.25
	

	$
	389.86
	 
	 
	$
	49,671.21
	

	12/15/2033
	$
	43,333.33
	 
	$
	5,718.75
	

	$
	337.90
	 
	 
	$
	49,389.98
	

	1/15/2034
	$
	43,333.33
	 
	$
	5,718.75
	

	$
	337.90
	 
	 
	$
	49,389.98
	

	2/15/2034
	$
	43,333.33
	 
	$
	5,718.75
	

	$
	337.90
	 
	 
	$
	49,389.98
	

	3/15/2034
	$
	43,333.33
	 
	$
	5,718.75
	

	$
	337.90
	 
	 
	$
	49,389.98
	

	4/15/2034
	$
	43,333.33
	 
	$
	5,718.75
	

	$
	337.90
	 
	 
	$
	49,389.98
	

	5/15/2034
	$
	43,333.33
	 
	$
	5,718.75
	

	$
	337.90
	 
	 
	$
	49,389.98
	

	6/15/2034
	$
	44,166.67
	 
	$
	4,635.42
	

	$
	284.81
	 
	 
	$
	49,086.90
	

	7/15/2034
	$
	44,166.67
	 
	$
	4,635.42
	

	$
	284.81
	 
	 
	$
	49,086.90
	

	8/15/2034
	$
	44,166.67
	 
	$
	4,635.42
	

	$
	284.81
	 
	 
	$
	49,086.90
	

	9/15/2034
	$
	44,166.67
	 
	$
	4,635.42
	

	$
	284.81
	 
	 
	$
	49,086.90
	

	10/15/2034
	$
	44,166.67
	 
	$
	4,635.42
	

	$
	284.81
	 
	 
	$
	49,086.90
	

	11/15/2034
	$
	44,166.67
	 
	$
	4,635.42
	

	$
	284.81
	 
	 
	$
	49,086.90
	

	12/15/2034
	$
	45,833.33
	 
	$
	3,531.25
	

	$
	230.71
	 
	 
	$
	49,595.29
	

	1/15/2035
	$
	45,833.33
	 
	$
	3,531.25
	

	$
	230.71
	 
	 
	$
	49,595.29
	

	2/15/2035
	$
	45,833.33
	 
	$
	3,531.25
	

	$
	230.71
	 
	 
	$
	49,595.29
	

	3/15/2035
	$
	45,833.33
	 
	$
	3,531.25
	

	$
	230.71
	 
	 
	$
	49,595.29
	

	4/15/2035
	$
	45,833.33
	 
	$
	3,531.25
	

	$
	230.71
	 
	 
	$
	49,595.29
	

	5/15/2035
	$
	45,833.33
	 
	$
	3,531.25
	

	$
	230.71
	 
	 
	$
	49,595.29
	

Schedule 2 - 1

	
																				
	6/15/2035
	$
	46,666.67
	 
	$
	2,671.88
	

	$
	174.56
	 
	 
	$
	49,513.11
	

	7/15/2035
	$
	46,666.67
	 
	$
	2,671.88
	

	$
	174.56
	 
	 
	$
	49,513.11
	

	8/15/2035
	$
	46,666.67
	 
	$
	2,671.88
	

	$
	174.56
	 
	 
	$
	49,513.11
	

	9/15/2035
	$
	46,666.67
	 
	$
	2,671.88
	

	$
	174.56
	 
	 
	$
	49,513.11
	

	10/15/2035
	$
	46,666.67
	 
	$
	2,671.88
	

	$
	174.56
	 
	 
	$
	49,513.11
	

	11/15/2035
	$
	46,666.67
	 
	$
	2,671.88
	

	$
	174.56
	 
	 
	$
	49,513.11
	

	12/15/2035
	$
	47,500.00
	 
	$
	1,796.88
	

	$
	117.40
	 
	 
	$
	49,414.27
	

	1/15/2036
	$
	47,500.00
	 
	$
	1,796.88
	

	$
	117.40
	 
	 
	$
	49,414.27
	

	2/15/2036
	$
	47,500.00
	 
	$
	1,796.88
	

	$
	117.40
	 
	 
	$
	49,414.27
	

	3/15/2036
	$
	47,500.00
	 
	$
	1,796.88
	

	$
	117.40
	 
	 
	$
	49,414.27
	

	4/15/2036
	$
	47,500.00
	 
	$
	1,796.88
	

	$
	117.40
	 
	 
	$
	49,414.27
	

	5/15/2036
	$
	47,500.00
	 
	$
	1,796.88
	

	$
	117.40
	 
	 
	$
	49,414.27
	

	6/15/2036
	$
	48,333.33
	 
	$
	906.25
	

	$
	59.21
	 
	 
	$
	49,298.79
	

	7/15/2036
	$
	48,333.33
	 
	$
	906.25
	

	$
	59.21
	 
	 
	$
	49,298.79
	

	8/15/2036
	$
	48,333.33
	 
	$
	906.25
	

	$
	59.21
	 
	 
	$
	49,298.79
	

	9/15/2036
	$
	48,333.33
	 
	$
	906.25
	

	$
	59.21
	 
	 
	$
	49,298.79
	

	10/15/2036
	$
	48,333.33
	 
	$
	906.25
	

	$
	59.21
	 
	 
	$
	49,298.79
	

	11/15/2036
	$
	48,333.33
	

	$906.25
	$59.21
	 
	$
	49,298.79
	 

	 
	 
	 
	 
	 
	 

Schedule 2 - 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}]]