Document:

EX-10.1

 Exhibit 10.1 

Execution Version 
  

 
 PURCHASE AGREEMENT 

dated 
 as of May 12, 2017 

between 
 China Airlines Ltd 

as Seller, 
 and 

Contrail Aviation Support, LLC 
 as
Buyer 
  
  

 

			
	W:\BC\L                2016 Contrail L01lb Contrail PA	  	i

  

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 1.  Definitions
	  	 	1	 
		
	 2.  Sale
	  	 	1	 
		
	 3.  Purchase Price; Deposit; Purchase Price Adjustment
	  	 	1	 
		
	 4.  Inspection of Aircraft; Value at Closing; Delivery Condition;
Deregistration; Export
	  	 	2	 
		
	 5.  Representations and Warranties of Seller
	  	 	3	 
	 (a)   Organization, Etc.
	  	 	3	 
	 (b)   Organizational Authorization
	  	 	3	 
	 (c)   No Violation
	  	 	3	 
	 (d)   Approvals
	  	 	3	 
	 (e)   Valid and Binding Agreements
	  	 	4	 
	 (f)   Litigation
	  	 	4	 
	 (g)   Encumbrances
	  	 	4	 
	 (h)   Brokers’ Fees
	  	 	4	 
	 (i) Title to Interests
	  	 	4	 
	 (j) Operation
	  	 	4	 
		
	 6.  Disclaimer
	  	 	4	 
		
	 7.  Representations and Warranties of Buyer
	  	 	5	 
	 (a)   Organization, Etc.
	  	 	5	 
	 (b)   Authorization
	  	 	5	 
	 (c)   No Violation
	  	 	5	 
	 (d)   Approvals
	  	 	5	 
	 (e)   Valid and Binding Agreements
	  	 	6	 
	 (f)   Litigation
	  	 	6	 
	 (g)   Broker’s Fees
	  	 	6	 
		
	 8.  Conditions Precedent to the Obligations of Seller
	  	 	6	 
	 (a)   Purchase Price
	  	 	6	 
	 (b)   Due Authorization, Execution and Delivery
	  	 	6	 
	 (c)   Representations and Warranties
	  	 	6	 
	 (d)   Additional Information
	  	 	6	 
	 (e)   Illegality
	  	 	6	 
	 (f)   No Proceedings
	  	 	6	 
	 (g)   Delivery Location
	  	 	7	 
	 (h)   Approvals, Consents and Notices
	  	 	7	 
	 (i) Insurance
	  	 	7	 

  
 i 

					
		
	 9.  Conditions Precedent to the Obligations of Buyer
	  	 	7	 
	 (a)   Due Authorization, Execution and Delivery
	  	 	7	 
	 (b)   Representations and Warranties
	  	 	7	 
	 (c)   Additional Information
	  	 	7	 
	 (d)   Illegality
	  	 	7	 
	 (e)   No Proceedings
	  	 	7	 
	 (f)   Delivery Location
	  	 	7	 
	 (g)   Material Damage
	  	 	7	 
	 (h)   Liens
	  	 	7	 
		
	 10.  International Registry
	  	 	8	 
		
	 11.  Further Assurances
	  	 	8	 
		
	 12.  Taxes, Indemnities and Insurance
	  	 	8	 
	 (a)   Buyer’s Obligations regarding Taxes
	  	 	8	 
	 (b)   Seller’s Indemnity
	  	 	8	 
	 (c)   Buyer’s Indemnity
	  	 	9	 
	 (d)   Withholding
	  	 	9	 
	 (e)   Contest Resolution
	  	 	9	 
	 (f)   Cooperation
	  	 	10	 
	 (g)   Notice of Claims
	  	 	10	 
	 (h)   Insurance
	  	 	10	 
		
	 13.  Know Your Customer
	  	 	11	 
		
	 14.  Miscellaneous
	  	 	11	 
	 (a)   Notices
	  	 	11	 
	 (b)   Confidentiality
	  	 	12	 
	 (c)   Limitation of Liability of Any Party
	  	 	12	 
	 (d)   Headings
	  	 	13	 
	 (e)   References
	  	 	13	 
	 (f)   Governing Law
	  	 	13	 
	 (g)   Arbitration/Jurisdiction
	  	 	13	 
	 (h)   Severability
	  	 	13	 
	 (i) Amendments in Writing
	  	 	13	 
	 (j) Survival
	  	 	13	 
	 (k)   Expenses
	  	 	13	 
	 (1)   Execution in Counterparts
	  	 	14	 
	 (m) Entire Agreement
	  	 	14	 
	 (n)   Exhibits and Schedules
	  	 	14	 
	 (o)   Successors and Assigns
	  	 	14	 
	 (p)   No Third Party Benefit
	  	 	14	 
	 (q)   Assignment
	  	 	14	 

  
 ii 

 SCHEDULES: 
  

			
	Schedule 1	  	Definitions
	Schedule 2	  	Aircraft Description; Purchase Price
	Schedule 3	  	Aircraft Documents
		
	EXHIBITS:	  	
		
	Exhibit A	  	Acknowledgment of Delivery
	Exhibit B	  	Certificate of Technical Acceptance
	Exhibit C	  	Warranty Bill of Sale

  

  
 iii 

 PURCHASE AGREEMENT 

THIS PURCHASE AGREEMENT, dated as of, 2017 (this “Agreement”), is entered into between CHINA AIRLINES LTD, a legal entity
organized under the laws of Taiwan, Republic of China (the “Seller”), and Contrail Aviation Support, LLC, a legal entity organized under the laws of
                     in (the “Buyer”). 

WHEREAS, subject to the terms and conditions hereof, Seller desires to sell, transfer, and convey to Buyer, and Buyer desires to purchase from
Seller, one (1) used Boeing 737-800 Aircraft and related Aircraft Documents (as defined herein). 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements of the parties contained herein and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Seller and Buyer agree as follows: 
 1.
Definitions 
 Capitalized terms used in this Agreement shall have the meanings set forth in Schedule 1 to this Agreement. 

2. Sale 
 Subject to the terms and conditions of
this Agreement, Seller agrees to sell and transfer to Buyer, and Buyer agrees to purchase from Seller, all of Seller’s right, title and interest in, to and under the Aircraft and Aircraft Documents, free and clear of all liens. The Closing of
the purchase and sale of the Aircraft shall take place upon satisfaction or waiver of all of the conditions set forth in Section 8 and Section 9 on the Anticipated Closing Date but not later than
the respective Final Closing Date, or at such other time as Buyer and Seller may agree in writing. 
 3. Purchase Price; Deposit; Purchase Price
Adjustment 
  

	(a)	 The purchase price for the Aircraft shall be in the amount and allocated (as applicable) as set forth on
Schedule 2 hereto (collectively and individually, the “Purchase Price”). 

  

	(b)	 Buyer has previously paid to Seller a security deposit in the amount and allocation (as applicable) as set
forth on Schedule 2 hereto (the “Deposit”) which shall be non-refundable to Buyer unless any of the following events occur: 

  

	 	(i)	 Seller fails to deliver the Aircraft to Buyer on or before the Final Closing Date; 

 

	 	(ii)	 the Aircraft suffers an Event of Loss or Material Damage between the time of Technical Acceptance and Delivery.
“Material damage” shall mean any damage 1) exceeding $100,000 in the total amount; 2) affecting the current non-incident statement; or 3) preventing Buyer from ferrying the Aircraft to the U.S.A.
(Buyer shall negotiate in good faith with Seller to resolve concerns over any material damage to the Aircraft before requesting termination of the Purchase Agreement and return of the Deposit.); 

  
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Page 1 

	 	(iii)	 Buyer’s or Seller’s material breach of this Agreement; 

 

	 	(iv)	 Buyer does not issue the Certificate of Technical Acceptance to Seller; or 

 

	 	(v)	 Seller’s inability to satisfy the Conditions Precedent listed in Section 9 of this Agreement, save
where such failure is as a result of Buyer’s breach of the Purchase Agreement. 

  

	(c)	 Prior to Closing, Seller shall provide an original undated signed bill of sale in the form shown on Exhibit C,
and Buyer shall provide an original undated signed delivery receipt for the Aircraft in the form shown on Exhibit A, to an escrow agent designated by Buyer, and reasonably acceptable to Seller, to be held by such escrow agent until Seller gives
notice that the full Purchase Price has been received by Seller. Said bill of sale shall be delivered (and shall only be delivered) to Buyer by the escrow agent upon receiving Seller’s email confirmation of receipt of the full Purchase Price in
cleared funds in Seller’s bank account, which confirmation Seller shall provide immediately upon receiving the Purchase Price. 

  

	(d)	 At Closing, Buyer shall deliver to Seller an amount equal to the Purchase Price (less the Deposit), in
immediately available funds, by wire transfer to the following account: 

  

					
		  	Bank:
*                                	  	
		  	SWIFT Code: *                    	  	
		  	ABA Code: *                        	  	
		  	Account Number: *                        	  	
		  	Account Name: China Airlines Ltd.	  	

 4. Inspection of Aircraft; Value at Closing; Delivery Condition; Deregistration; Export 

 

	(a)	 Buyer shall have the opportunity to perform inspections of the Aircraft and Aircraft Documents prior to Closing
at Taiwan Taoyuan International Airport (“Inspection”). Buyer shall be entitled to perform a general inspection of the Aircraft, including (i) a physical “walk around” inspection of the Aircraft interiors and
exteriors; (ii) review of the engine borescopes and engine performance checks and (iii) an inspection of all Aircraft Documents relating to such Aircraft. Upon Buyer’s confirmation that the Aircraft and Aircraft Documents are in a
condition required by this Agreement and as otherwise acceptable to Buyer, Buyer shall execute and deliver to Seller the Certificate of Technical Acceptance. 

  

	(b)	 Seller shall provide to Buyer at the time of delivery all Aircraft records, including but not limited to, the
following current documentation: (i) updated disk sheets, and (ii) non-incident statement(s) and non-PMA/DER statement(s), all in the form presented to Buyer
in connection with the Inspection. 

  
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Page 2 
  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

	(c)	 At Closing, the Aircraft (including the Aircraft Documents) shall be delivered to Buyer in “as-is” “where-is” basis. Seller makes no warranties, guarantees or representations of any kind, either express or implied, statutory or otherwise, as to
the condition of the Aircraft. 

  

	(d)	 The export and re importation of the Aircraft under this Agreement are subject to the export laws of the State
of Registration. Buyer shall be responsible for the post-closing exportation process required for the Aircraft, including any and all costs associated therewith. 

5. Representations and Warranties of Seller 
 On
the date hereof and on the Closing Date Seller makes the following representations and warranties. 
  

	(a)	 Organization, Etc. Seller is duly organized, validly existing and in good standing under the laws of
Taiwan, Republic of China with all requisite organizational power and authority to own, participate in or hold under lease its properties and enter into and perform its obligations under this Agreement and the Transfer Documents to which Seller is
or will be a party (collectively, the “Seller Agreements”); 

  

	(b)	 Organizational Authorization. Seller has taken, or caused to be taken, all necessary organizational
action (including, without limitation, the obtaining of any consent or approval of any of its board of directors or committee thereof or any officers required by its charter documents or other organizational agreements) to authorize the execution
and delivery of this Agreement and each of the Seller Agreements and the performance of its obligations hereunder and thereunder; 

  

	(c)	 No Violation. The execution and delivery by Seller of this Agreement and the Seller Agreements, the
performance by Seller of its obligations hereunder and thereunder and the consummation by Seller on the date hereof and on the Closing Date of the transactions contemplated hereby and thereby, do not and will not (i) violate or contravene any
provision of the charter documents or other organizational agreements of Seller, (ii) violate or contravene any law applicable to or binding on Seller or (iii) violate, contravene or constitute any default under, or result in the creation
of any lien upon, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other material agreement, instrument or document to which Seller is a party or by which Seller or any of its properties is or may
be bound or affected; 

  

	(d)	 Approvals. The execution and delivery by Seller of this Agreement and the Seller Agreements, the
performance by Seller of its obligations hereunder and thereunder and the consummation by Seller on the Closing Date of the transactions contemplated hereby or thereby do not and will not require the consent, approval or authorization of, or the
giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of any Government Entity; 

  
 Purchase Agreement 

Page 3 

	(e)	 Valid and Binding Agreements. This Agreement has, and the Seller Agreements have been or as of the
Closing Date will have been, duly authorized, executed and delivered by Seller and, assuming the due authorization, execution and delivery by the other party or parties thereto, this Agreement and, as of the Closing Date, the Seller Agreements
constitute the legal, valid and binding obligations of Seller and are enforceable against Seller in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership,
moratorium and other similar laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity; 

 

	(f)	 Litigation. There are no pending or, or to the knowledge of Seller, threatened actions or proceedings
against Seller before any court, administrative agency or tribunal which, if determined adversely to Seller, would prohibit or materially adversely affect the ability of Seller to perform its obligations under this Agreement or the Seller
Agreements; 

  

	(g)	 Encumbranccs. Seller has not previously sold, assigned, encumbered, transferred or conveyed and, except
as contemplated hereby, has no obligation to sell, assign, encumber, transfer or convey, any of its right, title or interest in, to or under the Aircraft; 

  

	(h)	 Brokers’ Fees. Buyer shall not be liable for the fees of any broker or other Person acting on
Seller’s behalf in connection with the transactions contemplated hereby; 

  

	(i)	 Title to Interests. Seller is the sole owner of the Aircraft and has good title thereto, free and clear
of any and all Liens. At Closing, such title shall be transferred to Buyer free and clear of all Liens. 

 6. Disclaimer

 Other than the express representations and warranties of Seller set forth in Section 5 and in any other Transfer Document,
the Aircraft is being sold and assigned hereunder, “AS IS, WHERE IS” and BUYER ACKNOWLEDGES AND AGREES THAT NEITHER THE SELLER NOR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES OR REPRESENTATIVES HAS MADE OR WILL BE DEEMED
TO HAVE MADE ANY TERM, CONDITION, REPRESENTATION, WARRANTY OR COVENANT EXPRESS OR IMPLIED (WHETHER STATUTORY OR OTHERWISE) AS TO, AND BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ANY AND ALL WARRANTIES, OBLIGATIONS AND LIABILITIES, EXPRESS OR IMPLIED
(WHETHER STATUTORY OR OTHERWISE) WITH RESPECT TO, (a) THE CAPACITY, AGE, VALUE, QUALITY, DURABILITY, DESCRIPTION (EXCEPT AS TO SERIAL NUMBERS), CONDITION (WHETHER OF THE AIRCRAFT, ANY PART THEREOF OR ITS AIRCRAFT DOCUMENTS), DESIGN,
WORKMANSHIP, MATERIALS, MANUFACTURE, CONSTRUCTION, OPERATION, DESCRIPTION, STATE, MERCHANTABILITY, PERFORMANCE, FITNESS FOR ANY PARTICULAR USE OR PURPOSE (INCLUDING THE ABILITY TO OPERATE OR REGISTER THE AIRCRAFT OR USE THE AIRCRAFT IN ANY OR ALL
JURISDICTIONS) OR SUITABILITY OF THE AIRCRAFT, OR ANY PART THEREOF, (b) THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, KNOWN OR UNKNOWN, APPARENT OR CONCEALED, EXTERIOR OR INTERIOR, (c) THE ABSENCE OF ANY INFRINGEMENT
OF ANY PATENT, TRADEMARK, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY RIGHTS, (d) ANY IMPLIED WARRANTY ARISING 

  
 Purchase Agreement 

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 FROM THE COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE OR (e) ANY OTHER REPRESENTATIONS OR
WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE AIRCRAFT OR ANY PART THEREOF OR ITS AIRCRAFT DOCUMENTS, ALL OF WHICH ARE HEREBY EXPRESSLY EXCLUDED, IT BEING UNDERSTOOD THAT NOTHING HEREIN WILL BE DEEMED TO LIMIT THE BUYER FROM AVAILING
ITSELF OF ANY WARRANTIES, COVENANTS, AND REPRESENTATIONS OF ANY MANUFACTURER. 
 7. Representations and Warranties of Buyer 

On the date hereof and on the Closing Date, Buyer makes the following representations and warranties as to itself, to Seller: 

 

	(a)	 Organization, Etc. Buyer is a limited liability company duly organized, validly existing and in good
standing under the laws of North Carolina, U.S.A., and has the power and authority to own, participate in or hold under lease its properties and to enter into and perform its obligations under this Agreement and the Transfer Documents to which Buyer
is a party (collectively, the “Buyer Agreements”);. 

  

	(b)	 Authorization. Buyer has taken, or caused to be taken, all necessary action (including, without
limitation, the obtaining of any consent or approval of its members required by its certificate of formation or limited liability company agreement) to authorize the execution and delivery of this Agreement and each of the Buyer Agreements, as the
case may be, and the performance of its obligations hereunder and thereunder; 

  

	(c)	 No Violation. The execution and delivery by Buyer of this Agreement and the Buyer Agreements, the
performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer on the Closing Date of the transactions contemplated hereby and thereby, do not and will not (i) violate or contravene any provision of the
certificate of formation, limited liability company agreement, other charter documents or other organizational agreements of Buyer, (ii) violate or contravene any law applicable to or binding on Buyer or (iii) violate, contravene or
constitute any default under, or result in the creation of any lien upon, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other material agreement, instrument or document to which Buyer is a party
or by which Buyer or any of its properties is or may be bound or affected; 

  

	(d)	 Approvals. The execution and delivery by Buyer of this Agreement and the Buyer Agreements, the
performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer on the Closing Date of the transactions contemplated hereby and thereby do not and will not require the consent, approval or authorization of, or the
giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (i) any trustee or other holder of any debt of Buyer and (ii) any Government Entity;

  
 Purchase Agreement 

Page 5 

	(e)	 Valid and Binding Agreements. This Agreement has been and the Buyer Agreements have been or as of the
Closing Date will have been duly authorized, executed and delivered by Buyer and, assuming the due authorization, execution and delivery by the other party or parties thereto, this Agreement and, as of the Closing Date, the Buyer Agreements
constitute the legal, valid and binding obligations of Buyer and are enforceable against Buyer in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership,
moratorium and other similar laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity; 

 

	(f)	 Litigation. There are no pending or, to the knowledge of Buyer, threatened actions or proceedings
against Buyer before any court, administrative agency or tribunal which, if determined adversely to Buyer would materially adversely affect the ability of Buyer to perform its obligations under this Agreement or the Buyer Agreements; and

  

	(g)	 Broker’s Fees. Seller shall not be liable for the fees of any broker or other person acting on
Buyer’s behalf in connection with the transactions contemplated hereby. 

 8. Conditions Precedent to the Obligations of
Seller 
 The obligation of Seller to sell, transfer, assign and convey the Aircraft to Buyer on each Closing Date is subject to the satisfaction or
waiver of the following conditions: 
  

	(a)	 Purchase Price. Seller shall have received the Purchase Price via wire transfer to Seller’s account
as specified in Section 3; 

  

	(b)	 Due Authorization, Execution and Delivery. This Agreement and each other Transfer Document shall have
been duly authorized, executed and delivered by each party thereto other than Seller; 

  

	(c)	 Representations and Warranties. The representations and warranties of Buyer contained herein and in any
other Buyer Agreements shall be true and correct as of Closing in all material respects; 

  

	(d)	 Additional Information. Seller shall have received such other documents and evidence with respect to
Buyer as Seller may reasonably request in order to establish the authority of Buyer to consummate the transactions contemplated by this Agreement and the other Transfer Documents on such date, the taking by Buyer of all appropriate action in
connection therewith and compliance by Buyer with the conditions set forth in this Agreement on such date; 

  

	(e)	 Illegality. The performance on such date of the transactions contemplated hereby, upon the terms and
conditions set forth herein, shall not, in the reasonable judgment of Seller, violate, and shall not subject Seller to any penalty or liability under, any law, rule or regulation binding upon Seller; 

 

	(f)	 No Proceedings. No legal or governmental action, suit or proceeding shall have been instituted or
threatened before any court, administrative agency or tribunal, nor shall any order, judgment or decree have been issued or proposed to be issued by any court, administrative agency or tribunal to set aside, restrain, enjoin or prevent the
consummation of this Agreement or the transactions contemplated hereby; 

  
 Purchase Agreement 

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	(g)	 Delivery Location. The Aircraft shall be located at the agreed Delivery Location; 

 

	(h)	 Approvals, Consents and Notices. All approvals and consents of, or notices to, any Governmental Entity,
any trustee or holder of any indebtedness or obligation of the Seller or any other person, which are required in connection with the transaction contemplated by this Agreement shall have been duly obtained, given or accomplished; and

  

	(i)	 Insurance. Seller shall have received the insurance certificate specified in Section 12(h).

 9. Conditions Precedent to the Obligations of Buyer 

The obligation of Buyer to purchase the Aircraft from Seller on each Closing Date is subject to the satisfaction or waiver of the following conditions: 

 

	(a)	 Due Authorization. Execution and Delivery. This Agreement and each other Transfer Document shall have
been duly authorized, executed and delivered by each party thereto other than Buyer; 

  

	(b)	 Representations and Warranties. The representations and warranties of Seller contained in the Transfer
Documents shall be true and correct as of the Closing Date in all material respects; 

  

	(c)	 Additional Information. Buyer shall have received such other documents and evidence with respect to
Seller as Buyer may reasonably request in order to establish the authority of Seller to consummate the transactions contemplated by this Agreement and other Transfer Documents on such date, the taking by Seller of all appropriate corporate action in
connection therewith and compliance by Seller with the conditions set forth in the Transfer Documents on such date; 

  

	(d)	 Illegality. The performance of the transactions contemplated hereby, upon the terms and conditions set
forth herein, shall not, in the reasonable judgment of Buyer, violate, and shall not subject any Buyer to any penalty or liability under, any law, rule or regulation binding upon such Buyer; 

 

	(e)	 No Proceedings. No legal or governmental action, suit or proceeding shall have been instituted or
threatened before any court, administrative agency or tribunal, nor shall any order, judgment or decree have been issued or proposed to be issued by any court, administrative agency or tribunal to set aside, restrain, enjoin or prevent the
consummation of this Agreement or the transactions contemplated hereby; 

  

	(f)	 Delivery Location. The Aircraft shall be located at the agreed Delivery Location; 

 

	(g)	 Material Damage. No Material Damage (as defined in Section 3) or an Event of Loss with respect to
the Aircraft shall have occurred; 

  

	(h)	 Liens. The Aircraft shall be free and clear of all Liens; 

  
 Purchase Agreement 

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 10. International Registry 

At or promptly after Closing, upon request by Buyer, Seller shall provide any consents required to register a contract of sale for the sale of the Aircraft on
the International Registry. 
 11. Further Assurances 

Each party agrees, upon the reasonable request of the other party, at any time and from time to time, promptly to execute and deliver all such further
documents, and promptly to take and forebear from all such action, as may be reasonably necessary or appropriate in order more effectively to confirm or carry out the provisions of this Agreement. Without limiting the foregoing, Seller shall, at the
sole cost and expense of Buyer, do or cause to be done all acts and things as may be required to perfect and preserve the title and interest of Buyer in the Aircraft as Buyer may reasonably request, including, without limitation, that Seller shall,
upon request by Buyer and at Buyer’s cost and expense, cause all instruments which shall be executed pursuant to the terms hereof to be kept, filed and recorded in the appropriate office or offices pursuant to applicable laws to perfect,
protect and preserve the rights and interests of Buyer hereunder and in the Aircraft. 
 12. Taxes, Indemnities and Insurance 

 

	(a)	 Buyer’s Obligations regarding Taxes. Buyer hereby agrees promptly to pay and indemnify each Seller
Indemnitee from and against any and all Taxes payable in connection with the sale, transfer and delivery by Seller to Buyer of the Aircraft or in connection with any other transaction to occur on or after the Closing expressly contemplated hereby.
The foregoing shall expressly exclude any liability for Taxes on or based on or measured by the gross or net income of Seller or capital gains of Seller or Taxes imposed by a taxing authority in a jurisdiction that would not have been imposed but
for the business activity (other than the transactions contemplated hereby) or tax residence of Seller in such jurisdiction. The parties agree to cooperate in takingactions to minimize or eliminate Taxes in connection with this transaction.

  

	(b)	 Seller’s Indemnity. Seller hereby covenants and agrees that it will pay and assume liability for,
and indemnify, protect, defend, save and keep harmless each Buyer Indemnitee from and against, any and all liabilities, Taxes, obligations, losses, damages, settlements, claims, actions, suits, penalties, costs and expenses (including, without
limitation, reasonable fees and expenses of counsel) of whatsoever kind and nature which may at any time or from time to time be imposed upon, incurred by or asserted against any Buyer Indemnitee in any way relating to, resulting from or arising out
of (i) any inaccuracy or breach of any representation or warranty made by Seller under this Agreement or any Seller Agreements, (ii) any failure by Seller to have observed or performed any of its obligations under or in connection with
this Agreement or any Seller Agreements, or (iii) any claims made after Closing, solely to the extent any such claim is attributable to (A) the gross negligence or willful misconduct of Seller and occurring prior to Closing, or
(B) the existence of any Liens on the Aircraft attributable to the period occurring prior to Closing. 

  
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	(c)	 Buyer’s Indemnity. Buyer hereby covenants and agrees upon demand of Seller to pay and assume
liability for, and indemnify, protect, defend, save and keep harmless each Seller Indemnitee from and against, any and all liabilities, Taxes, fees, obligations, losses, damages, settlements, claims, actions, suits, penalties, costs and expenses
(including, without limitation, reasonable fees and expenses of counsel) of whatsoever kind and nature which may at any time or from time to time be imposed upon, incurred by or asserted against any Seller Indemnitee in any way relating to,
resulting from or arising out of (i) any inaccuracy or breach of any representation or warranty made by Buyer under this Agreement or any Buyer Agreements, (ii) any failure by Buyer to have observed or performed any of its obligations
under or in connection with this Agreement or any Buyer Agreements in respect of or to the extent attributable to the period from and after Closing, or (iii) any claims made after Closing, solely to the extent such claim is not attributable
(A) to the period occurring prior to Closing or (B) to Seller’s failure to perform its obligations under this Agreement or the Seller Agreements. 

 

	(d)	 Withholding. If any Tax is required by law to be deducted or withheld from or with respect to any amount
paid or payable by Buyer or the Seller pursuant to this Agreement (the “Paying Party”) to the other party hereto (the “Receiving Party”), then the Paying Party shall pay such additional amount as shall be necessary
to enable the Receiving Party to receive, after all such withholding (including any withholding from or with respect to such additional amount), the amount that the Receiving Party would have received if such deduction or withholding had not been
made. 

  

	(e)	 Contest Resolution. If a claim is made by any tax authority against a party hereto (the “taxed
party”) with respect to any Tax of which another party (the “indemnifying party”) is obligated to indemnify under this Section 12, the taxed party shall promptly notify the indemnifying party of such claim; provided,
however, that the failure to give such notice will not prejudice or otherwise affect any of the rights of the taxed party hereunder unless such failure materially and adversely affects the indemnifying party in exercising its contest rights
hereunder or to the extent such failure results in any increase in, or fine or penalty with respect to, any amounts claimed to be payable by the indemnifying party to the taxed party pursuant to this Section 12. If reasonably requested by the
indemnifying party in writing, the taxed party shall (at the expense and direction of the indemnifying party) contest in the name of the taxed party or indemnifying party (as applicable), the validity, applicability or amount of such Taxes so
indemnified by (i) if permitted by applicable law without adverse consequences to the taxed party, resisting payment thereof, (ii) paying under protest, if protest is necessary or proper, and (iii) if payment be made, using reasonable
commercial efforts to obtain a refund thereof in appropriate administrative and judicial proceedings. If the taxed party becomes eligible for a refund of any Taxes paid by the indemnifying party, it shall notify the indemnifying party and, if
reasonably requested by the indemnifying party and permissible under applicable law, the taxed party shall consider in good faith any request by the indemnifying party to assign such right to the indemnifying party. Should the taxed party obtain a
refund of all or any part of the Taxes paid by the indemnifying party, the taxed party shall pay the indemnifying party the amount of such refund, plus, any interest thereon (net of any taxes imposed on such interest) obtained by the taxed party
from the taxing authority if fairly attributable to such Taxes. 

  
 Purchase Agreement 

Page 9 

	(f)	 Cooperation. Seller and Buyer shall reasonably cooperate so as to minimize any potential tax risk to
Buyer or Seller as a result of the transactions contemplated hereby. Seller and Buyer shall provide one another with such assistance as may reasonably be required in connection with the preparation of any tax return, any audit or other examination
by any taxing authority, or any judicial or administrative proceedings relating to liability for Taxes arising from the transactions contemplated by this Agreement, and shall provide one another upon written request with any records or information
that are relevant to such Tax return, audit or examination or proceedings. The party requesting assistance, records or information under the preceding sentence shall reimburse the other for reasonable out-of-pocket expenses incurred by the other in providing such assistance, records or information. 

  

	(g)	 Notice of Claims. Seller and Buyer agree to provide written notification to the other party promptly
after becoming aware of any liability, obligation or claim, whether pending or threatened, that is the subject of indemnification pursuant to this Section 12; unless the failure to provide such notification would not materially and adversely
affect the indemnifying party in exercising its contest rights hereunder or result in any increase in, or fine or penalty with respect to, any amounts claimed to be payable by the indemnifying party to the other party pursuant to this
Section 12, provided, that the failure by either party to so notify the other party will not in any manner affect either party’s other obligations under this Section 12. 

 

	(h)	 Insurance. For the earlier of a period of two years after the purchase of the Aircraft or the
dismantling of the Aircraft, or the airframe or engine, Buyer shall, or shall cause any subsequent buyer or operator to, at its own cost and expense, maintain and keep in full force and effect an insurance policy(ies) for the Aircraft and Engines
providing $10,000,000 of aviation products liability coverage, except in the event that any Engine is returned to service, in which event $500,000,000 of aviation general liability coverage shall be provided with respect to such Engine. Aviation
General Liability insurance covering Buyer’s or any operator’s aviation activities shall include Premises Liability, Contractual Liability, Products Liability, War Risks Liability, and including Extended Coverage Endorsement (Aviation
Liabilities) AVN52 or equivalent covering War and Allied Perils excluded by War, Hijacking and Other Perils Exclusion Clause AVN48B or any modification or substitution thereof for the time in force. Such policies shall be carried with insurers
reasonably acceptable to Seller. Such insurance shall include the Seller and any other Seller Indemnitees as Additional Insureds. Such policies shall include a Waiver of Subrogation Clause, Breach of Warranty Clause, and Severability of Interest
Clause in favor of the Additional Insureds. Buyer shall furnish an insurance certificate evidencing the same at Closing, and, upon Seller’s request, at the expiration of an existing certificate. 

  
 Purchase Agreement 

Page 10 

 13. Know Your Customer 

Seller and Buyer shall (i) ensure that no Person who owns a controlling interest in or otherwise controls Buyer or Seller is or shall be listed on the
Specially Designated Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign Assets Control (“OFAC”), the Department of the Treasury or included in any Executive Orders, (ii) not violate any
of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto, (iii) comply with all applicable Bank Secrecy Act laws and regulations, as amended or (iv) comply with any other applicable national
sanctions program. As required by federal law or other applicable law, Seller or Buyer may need to obtain, verify and record certain customer identification information and documentation in connection herewith, and each party hereto shall provide
such information as is reasonably requested prior to Closing. 
 14. Miscellaneous 

 

	(a)	 Notices. 

All notices, demands, declarations and other communications required by this Agreement shall be in writing and shall be effective (i) if
given by facsimile, when transmitted, (ii) if given by registered or certified mail, three Business Days after being deposited with the U.S. Postal Service or other commercially recognized carrier and (iii) if given by a nationally
recognized overnight courier, when received, or, if personally delivered, when so delivered, addressed: 
 If to Seller, to: 

CHINA AIRLINES LTD. 
 Q5F,
No.1, Hangzhan S. Rd., Dayuan Dist., 
 Taoyuan City 33758, Taiwan, R.O.C 

Attn: Steve Chang, Vice President 

Corporate Development Office 

Fax: (886) 3 399 8570 
 Email:
s.chang@china-airlines.com 
 or to such other address as Seller shall from time to time designate in writing to Buyer; and 

If to Buyer, to: 
 CONTRAIL
AVIATION SUPPORT, LLC 
 435 Investment Court 

Verona, Wisconsin 53593 
 Attn:
Joseph Kuhn, CEO 
 Fax: (608) 848-8100 

Email: Joe@contrail.com 

  
 Purchase Agreement 

Page 11 

 or to such other address as Buyer may from time to time designate in writing to Seller. 

 

	(b)	 Confidentiality. 

 

	 	(i)	 Each party hereto shall keep strictly confidential any and all Confidential Information furnished to it or to
its Affiliates, or their respective officers, employees, agents, directors or advisers (collectively, “Representatives”) in the course of negotiations relating to this Agreement or any transaction contemplated by this Agreement, and
the business and financial reviews and investigation conducted by any party hereto in connection with this Agreement, and each such party has instructed its Representatives having access to such Confidential Information of such obligation of
confidentiality. The obligations of confidentiality set forth herein shall not apply to information to the limited extent (v) it is contained in a Transfer Document that is publicly filed as contemplated hereby; (w) it is required to be
disclosed by any Governmental Entity or required to be disclosed by applicable law or administrative proceeding, (x) for which a party has received a subpoena or similar demand (provided that such party shall to the extent permitted by
applicable law first, as promptly as practicable upon receipt of such subpoena or demand, furnish a copy thereof to the other party), (y) that such information is generally available to the public or in the possession of the receiving party before
its disclosure by the disclosing party to the receiving party or (z) that it is given to the receiving party by another Person other than in breach of obligations of confidentiality owed by such Person to the disclosing party. Notwithstanding
the foregoing, each party acknowledges and agrees that any party may disclose Confidential Information to (A) regulators, (B) such party’s counsel, Affiliates, beneficiaries, hedging arrangement providers, insurance brokers and providers,
reinsurers and auditors provided that such recipients maintain the confidentiality of the Confidential Information and (C) prospective transferees and lenders who agree to keep such Confidential Information confidential. 

 

	 	(ii)	 Notwithstanding anything herein to the contrary, any party to this Agreement (and any Representative) may
disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure; provided, however, that such disclosure may not be made to the extent required to be kept confidential to comply with any applicable federal or state securities laws. 

 

	(c)	 Limitation of Liability of Any Party. THE PARTIES ACKNOWLEDGE AND AGREE THAT, NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, NO PARTY SHALL BE LIABLE TO ANOTHER PARTY TO THIS AGREEMENT OR ASSERT A CLAIM FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR PUNITIVE DAMAGES, REGARDLESS OF THE NATURE OR THEORY OF ANY UNDERLYING CAUSE OF ACTION THAT
MIGHT OTHERWISE APPLY. 

  
 Purchase Agreement 

Page 12 

	(d)	 Headings. Headings used herein are for convenience only and shall not in any way affect the construction
of, or be taken into consideration in interpreting, this Agreement. 

  

	(e)	 References. Any reference to a specific Section or Section number shall be interpreted as a reference to
that Section of this Agreement unless otherwise expressly provided. 

  

	(f)	 Governing Law; Jurisdiction; Attorney Fees. This Agreement and any other Transfer Documents shall in all
respects be governed by, and construed in accordance with, the laws of the State of New York, U.S.A., including all matters of construction, validity and performance, without giving effect to principles of conflicts of law. The federal courts
located in the State of New York shall serve as the exclusive forum for any such dispute and the parties irrevocably consent to the jurisdiction of such courts. In the event of a dispute between the parties, the prevailing party shall be entitled to
reasonable attorney fees and costs. 

  

	(g)	 Severability. If any provision hereof should be held invalid, illegal or unenforceable in any respect in
any jurisdiction, then, to the fullest extent permitted by law, (i) all other provisions hereof shall remain in full force and effect in such jurisdiction and shall be construed in order to carry out the intentions of the parties hereto as
nearly as may be possible, and (ii) such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction. 

 

	(h)	 Amendments in Writing. No amendment, modification, waiver, termination or discharge of any provision of
this Agreement, or any consent to any departure by Seller or Buyer from any provision hereof, shall in any event be effective unless the same shall be in writing and signed by Seller and Buyer, and each such amendment, modification, waiver,
termination or discharge shall be effective only in the specific instance and for the specific purpose for which given. 

  

	(i)	 Survival. Notwithstanding anything contained herein to the contrary, all agreements, indemnities,
representations and warranties contained in this Agreement shall survive the Closing Date and the consummation of the transactions contemplated hereby for such date. 

 

	(j)	 Expenses. Each of Seller and Buyer shall be responsible for its own costs and expenses incurred in
connection with the negotiation, preparation, execution and delivery of this Agreement and the Transfer Documents, and shall not have any right of reimbursement or indemnity for such costs and expenses as against the Buyer or Seller, respectively.
Notwithstanding anything to the contrary, Buyer shall be responsible for any cost associated with the registration of the transfer of title in the State of Registration including any special aviation counsel fees. [Subject to review by Taiwanese
counsel.] 

  

	(k)	 Execution in Counterparts; Signatures. This Agreement, the other Transfer Documents and any amendments,
waivers or consents hereto or thereto may be executed by Seller and Buyer in separate counterparts (or upon separate signature pages bound together into one or more counterparts), each of which, when so executed and delivered, shall be an original,
but all such counterparts shall together constitute one and the same instrument. Promptly upon Closing, each Party shall provide executed originals of this Agreement and the Transaction Documents, as applicable, to the other Party. Nevertheless,
facsimile and PDF copy signatures shall also be treated as original signatures for all purposes. 

  
 Purchase Agreement 

Page 13 

	(l)	 Entire Agreement. This Agreement and the other Transfer Documents constitute the entire agreement of
Seller and Buyer with respect to the subject matter hereof or thereof, and all prior or contemporaneous understandings or agreements, whether written or oral, between Seller and Buyer with respect to such subject matter are hereby superseded in
their entirety. In the event of a conflict between this Agreement and any other Transfer Document, the terms and conditions of this Agreement shall govern. 

  

	(m)	 Exhibits and Schedules. The exhibits and schedules attached hereto are incorporated by reference herein
and shall have the same force and effect with respect to the provisions set forth therein as though fully set forth in this Agreement. 

  

	(n)	 Successors and Assigns. This Agreement shall be binding upon, shall inure to the benefit of and shall be
enforceable by Seller and Buyer, and their respective successors and assigns. 

  

	(o)	 No Third Party Benefit. Seller and Buyer agree that except as provided in Section 12 with respect
to Seller Indemnitees and Buyer Indemnitees, the provisions of this Agreement, including, without limitation, Section 2, are for the sole benefit of Seller and Buyer and their respective successors and assigns, and are not for the benefit,
directly or indirectly, of any other Person. 

  

	(p)	 Assignment. Neither party shall assign or delegate this Agreement, or any of its rights or obligations
hereunder, without the prior written consent of the other party. 

  
 Purchase Agreement 

Page 14 

 IN WITNESS WHEREOF, the undersigned have caused this PURCHASE AGREEMENT to be duly
executed as of the day and year first written above. 
  

					
		 	CHINA AIRLINES LTD as Seller
		 		 	
		 	By:	 	 /s/ Wei Wang

		 	Name:	 	Wei Wang
		 	Title:	 	AVP
		
		 	CONTRAIL AVIATION SUPPORT, LLC, as Buyer
			
		 	By:	 	 /s/ Joseph G. Kuhn

		 	Name:	 	Joseph G. Kuhn
		 	Title:	 	CEO

  
 Purchase Agreement 

Page 15 

 SCHEDULE 1 

DEFINITIONS 
  

	(a)	 Unless the context otherwise indicates, any reference in this Agreement to: 

 

	 	(i)	 a “part” means any engine, module, component, instrument, furnishing, control, appliance, accessory,
reverser, nacelle, equipment or other item or equipment of any kind whether similar to any of the foregoing or not; 

  

	 	(ii)	 a “regulation” includes any present or future directive, regulation, request or requirement (in each
case whether or not having the force of law) but, if not having the force of law, the compliance with which is in accordance with the general practice of the persons to whom it is addressed; 

 

	 	(iii)	 any “agreement”, “license” or other document includes any agreement, license or other
instrument as varied, novated, amended or replaced from time to time (but without prejudice to any restrictions on such variation, novation, amendment or replacement); 

 

	 	(iv)	 the expressions “hereof”, “herein” and similar expressions shall be construed as references
to this Agreement as a whole and shall not be limited to the particular clause in which the relevant expressions appear and the expressions “thereof”, “therein” and similar expressions shall be construed in like fashion;

  

	 	(v)	 references to any statute or other legislative provision shall be read to include any statutory or legislative
modification or re-enactment thereof or any substitution therefor; 

  

	 	(vi)	 references to a party shall be read to include its successors and permitted assigns; 

 

	 	(vii)	 a Clause or Schedule shall be construed as a reference to a clause hereof or a schedule hereto;

  

	 	(viii)	 a word importing the singular number shall be construed so as to include the plural and vice versa;

  

	 	(ix)	 the expression “in writing” includes by facsimile or e-mail;
and 

  

	 	(x)	 the index, clause and sub-clause headings in this Agreement (including
their use in cross references) are for ease of reference only and shall not affect the interpretation of this Agreement. 

  

	(b)	 In this Agreement, the following terms have the following meanings: 

“Acknowledgment of Delivery” means the Acknowledgment of Delivery substantially in the form attached hereto as Exhibit A. 

  
 Schedule 1 

Page 1 

 “Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person or which owns, directly or indirectly, more than fifty percent of the outstanding equity interests of such Person. A Person shall be deemed to control another
Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities, by contract, or otherwise. 

“Aircraft” means the Airframe, equipped with the Engines and other items of equipment installed in or attached thereto, and all Aircraft
Documents related thereto. 
 “Aircraft Documents” means full
back-to-birth traceability of life limited parts which shall include commercial trace as required to show the part change of ownership from new to current and a non-incident / accident / military / government letter and the manuals and records described in Schedule 3 attached hereto including all inspection, modification and overhaul records required to be maintained
under applicable rules and regulations, all records of any third party which has made any modifications to or refurbishments of the Aircraft, and any other technical documents that pertain to the Aircraft including, without limitation, the dirty
finger prints for all the shop visits from last performance restoration. 
 “Airframe” means that certain Boeing 737-800 airframe more specifically described on Schedule 2. 
 “Anticipated Closing Date” means the date
for anticipated Closing for the Aircraft as designated on Schedule 2. 
 “Bill of Sale” means the Warranty Bill of Sale for
the Aircraft. 
 “Business Day” means any day, other than a Saturday or Sunday, on which banks in New York City and Taiwan, Republic of
China are open for business. 
 “Certificate of Technical Acceptance” means the Certificate of Technical Acceptance in the form attached
hereto as Exhibit B. 
 “Closing” means the closing of the sale and purchase of the Aircraft pursuant to this Agreement on the Closing
Date. 
 “Closing Date” means the date of the Closing. 

“Confidential Information” means any and all information, whether written, in electronic form, or oral concerning or relating in any way to
the Aircraft, which is provided by a party hereto or such party’s Affiliates or representatives to the other party hereto or such party’s Affiliates or representatives, and includes, without limitation, all agreements, analyses,
compilations, forecasts, studies, capabilities, specifications, program plans, marketing plans, e-commerce strategies, inspection reports, certificates of insurance or other documents which contain or
otherwise reflect such information, or any portion thereof or notes or other documents which contain or reflect such information, whether or not marked or specifically identified as “confidential” or “proprietary.” 

  
 Schedule 1 

Page 2 

 “Delivery Location” Taiwan Taoyuan International Airport, or such other location as
mutually agreed to by the parties. 
 “Deposit” has the meaning set forth in Section 3 hereof. 

“Engines” means those CFM56-7B26 aircraft engines including all parts, components, appliances, accessories, instruments, furnishings,
alterations thereto whether or not attached to the Airframe on the Closing Date as more specifically described on Schedule 2. 
 “Event of
Loss” means any of the following events with respect to the Aircraft, including, but not limited to, the Aircraft, the Airframe or any Engine or engine installed on the Airframe: (a) loss of such property or its use due to theft,
hijacking or disappearance for a period in excess of sixty (60) consecutive days, or in any event extending beyond the Anticipated Closing Date, or destruction, damage beyond economic repair or rendition of such property permanently unfit for
normal use for any reason whatsoever, (b) any damage to such property which results in an insurance settlement with respect to such property on the basis of a total loss or on the basis of a compromised or constructive total loss, (c) the
condemnation, confiscation, appropriation or seizure of, or requisition of title to, such property by a governmental entity or purported governmental entity, (d) the condemnation, confiscation, appropriation or seizure of the use of such
property by or on behalf of the authority of any governmental entity or purported governmental entity, that in any such case shall have resulted in the loss of possession thereof for a period in excess of sixty (60) consecutive days or in any
event extending beyond the Anticipated Closing Date or (e) any divestiture of title of such property except as otherwise permitted by the other party. 

“Final Closing Date” means the date which is 21 days after the Anticipated Closing Date the Aircraft as designated on Schedule 2. 

“Government Entity” means any (i) nation, state, county, city, town, village, district, or other jurisdiction of any nature;
(ii) federal, state, local, municipal, foreign, or other government; (iii) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal);
(iv) multinational organization or body; or (v) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, regulatory, or taxing authority or power of any nature. 

“Inspection” has the meaning set forth in Section 4 hereof. 

“International Registry” means the International Registry of Mobile Assets established pursuant to the Convention on International Interests
in Mobile Equipment and its Protocol on Matters Specific to Aircraft Equipment, concluded in Cape Town on November 16, 2001. 
 “Lien”
means any pledge, lien, charge, encumbrance, exercise of rights, security interest or claim of any kind or nature. 
 “OFAC” has the
meaning set forth in Section 13 hereof. 

  
 Schedule 1 

Page 3 

 “Person” means an individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture, Government Entity or other entity of whatever nature. 
 “Purchase
Price” has the meaning set forth in Section 3 hereof. 
 “Buyer Agreements” has the meaning ascribed in
Section 7(a) hereof. 
 “Buyer Indemnitee” means Buyer and any Buyer’s Affiliates, members, managers,
officers, directors, employees, successors and assigns. 
 “Seller Agreements” has the meaning ascribed to such term in
Section 5(a) hereof. 
 “Seller Indemnitee” means each of the Seller, GA Telesis, LLC and any Affiliates of
either, and the members, managers, officers, directors, employees, successors and assigns of any of such entities. 
 “State of Registration”
means Taiwan (previous registration) and USA (after sale) 
 “Taxes” means and includes all present and future income,
gains, sales, stamp, documentary, use, value-added, goods and services and other taxes, duties, imposts, levies, deductions, charges and withholdings imposed by any Government Entity and also includes all fines, penalties and interest thereon, and
the terms “Tax” and “Taxation” shall be construed accordingly. 
 “Transfer Documents” means this Agreement, the Bill
of Sale, the Acknowledgments of Delivery, the Certificates of Technical Acceptance and any other agreements, documents, certificates and instruments executed and delivered in connection herewith. 

“Warranty Bill of Sale” means the warranty bill of sale for the Aircraft, in the form of Exhibit C hereto for the Aircraft.

  
 Schedule 1 

Page 4 

 SCHEDULE 2 

AIRCRAFT DESCRIPTION; PURCHASE PRICE 
  

															
	 MSN
	 	Chinese
Registration
Mark	 	Engine
Make
and
Model	 	ESNs	 	Purchase
Price	 	Deposit	 	Anticipated
Closing Date	 	Final
Closing
Date
	28405	 	B-18606	 	CFM56-7B26	 	 87355 
	 	*                    	 	*                    	 	May 10, 2017	 	May 31, 2017
		 		 		 	  
	 		 		 		 	
		 		 		 	875363	 		 		 		 	

  
 Schedule 2 

Page 1 

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

 SCHEDULE 3 

AIRCRAFT DOCUMENTS 

AIRCRAFT RECORDS 
 All
aircraft technical documents and records relating to the Aircraft in Seller’s possession as 
 inspected and accepted by Buyer,
including non-incident statements from previous operators and 
 Seller, and including but not
limited to the following: 
  

	1.	 Copies of original Certificates delivered by the Manufacturer, such as: 

 

	2.	 Copies of original Documents delivered by the Manufacturer, such as: 

 

	3.	 Letters signed and stamped by Quality Assurance: 

 

	 	a.	 Current aircraft hours and cycles 

 

	 	b.	 Current engines hours and cycles, including LLP Disk Sheets 

 

	 	c.	 Accident and Incident report 

 

	 	d.	 Summary of Maintenance Program 

 

	 	e.	 AD compliance 

4. Aircraft log books 
 5. Last weighing report 

6. Cabin Configuration drawing (LOPA) 
 ENGINES
RECORDS 
  

	1.	 Life-limited Parts status and traceability 

 

	2.	 AD compliance report 

 

	3.	 Engine Modification / service bulletin /inspection report and applicable forms 

 

	4.	 Last heavy maintenance records for each module 

 

	5.	 Engine log books 

  

	6.	 Engine removal history 

 

	7.	 Last 3 months’ trend monitoring reports 

APU RECORDS 
  

	1.	 APU status (FH, FC, limits) 

 

	2.	 Life-limited Part status and traceability 

 

	3.	 AD compliance report 

 

	4.	 Modification status 

  

	5.	 Last heavy maintenance documents 

 

	6.	 APU log books 

  

	7.	 Last test cell report 

COMPONENT RECORDS 
  

	1.	 Aircraft component inventory 

 

	2.	 Hard time component inventory 

 

	4.	 Landing Gear status with last Overhaul and life-limited Part status 

 

	5.	 AD compliance report 

 

	6.	 Modification status 

  
 Schedule 3 

Page 1 

 EXHIBIT A 

ACKNOWLEDGMENT OF DELIVERY 

, 2017 
 By this Acknowledgment of Delivery,
China Airlines Ltd (the “Seller”), and Contrail Aviation Support, LLC (the “Buyer”), acknowledge that pursuant to that certain Purchase Agreement dated as of
            , 2017, among Seller and Buyer, (the “Agreement”), Seller does hereby deliver to Buyer and Buyer does hereby accept the following in all respects under the
Agreement: 
 One Boeing model 737-800 aircraft bearing manufacturer’s serial number 28405 and
equipped with two CFM56-7B26 aircraft engines bearing manufacturer’s serial numbers 875355 and 875363, including all parts, components, appliances, accessories, instruments, furnishings, alterations and other items of equipment installed in or
attached thereto, and all Aircraft Documents related thereto (collectively the “Aircraft”). 
 Buyer has accepted delivery of the Aircraft
at                  hours G.M.T. at Taoyuan International Airport, Taiwan. Accordingly, as of the date hereof, Seller has delivered the Aircraft to Buyer and that the
Closing Date as defined and set forth in the Agreement has occurred. Buyer hereby declares that the Aircraft is acceptable and does conform to the Agreement in all respects. 

This Acknowledgment of Delivery may be signed in one or more counterparts with the same effect as if the signatures to each counterpart were upon a single
instrument. All counterparts shall, taken together, be considered an original of this Acknowledgment of Delivery. All capitalized terms used herein not otherwise defined shall have the same meaning as that given in the Agreement. 

[Signature page follows.] 

  
 Exhibit A 

 IN WITNESS WHEREOF, the undersigned have duly executed this Acknowledgment of Delivery as of
the date first written above. 
  

					
		 	China Airlines Ltd (Seller)
			
	  	 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

		
		 	Contrail Aviation Support, LLC (Buyer)
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

  
 Exhibit A 

 EXHIBIT B 

CERTIFICATE OF TECHNICAL ACCEPTANCE  

relating to that Boeing 737-800 Aircraft, 

manufacturer’s serial number 28405 (the “Aircraft”) 

, 2017 
 This Certificate of Technical
Acceptance (this “Certificate”) is delivered on the date set out below by Contrail Aviation Support, LLC (“Buyer”), to China Airlines Ltd (“Seller”), pursuant to that certain Purchase Agreement dated
            , 2017 between Buyer and Seller (the “Agreement”). The capitalized terms used in this Certificate shall have the meaning given to such terms in the Agreement.

  

	(a)	 Buyer has inspected the Aircraft in accordance with the provisions of Section 4 of the Agreement at
[insert inspection location] and the Aircraft and found the Aircraft to be satisfactory; and 

  

	(b)	 Buyer has received and inspected all of the Aircraft Documents and found them to be complete and satisfactory.

 IN WITNESS WHEREOF, Buyer has, by its duly authorized representative, executed this Certificate on the date
first written above, accepted the Aircraft and confirmed its compliance with the Agreement in all respects. 
  

			
	Contrail Aviation Support, LLC (Buyer)
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Exhibit B 

 EXHIBIT C 

WARRANTY BILL OF SALE 

relating to that Boeing 737-800 Aircraft, 

manufacturer’s serial number 28405 

, 2017 
 KNOW ALL MEN BY THESE PRESENTS: 

THAT for and in consideration of good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, AirChina Limited
(“Seller”) dues, on the date hereof, grant, convey, transfer, bargain, sell, deliver and set over to Contrail Aviation Support, LLC (“Buyer”), all of Seller’s right, title and interest in and to the one Boeing 737-800 aircraft bearing manufacturer’s serial number 28405, equipped with two CFM56-7B26 aircraft engines bearing manufacturer’s serial numbers 875355 and 875363 including all parts, components,
appliances, accessories, instruments, furnishings, alterations and other items of equipment installed in or attached thereto, and all Aircraft Documents related thereto (collectively the “Aircraft”). Capitalized terms used and not
otherwise defined herein shall have the meanings ascribed to them in that certain Purchase Agreement dated as of                     , 2017, among
Seller and Buyer (the “Agreement”). 
 TO HAVE AND TO HOLD said Aircraft unto Buyer, its successors and assigns, for its
and their own use forever. 
 THAT Seller hereby warrants to Buyer, its successors and assigns, that it is the holder of title to the
Aircraft and has the right to sell the same as aforesaid and that this Warranty Bill of Sale conveys to Buyer on the date hereof, good title to the Aircraft, free and clear of all Liens, encumbrances and rights of others, and that Seller will
warrant and defend such title forever against all claims and demands whatsoever. 
 This Bill of Sale shall be governed by the laws of New
York, U.S.A, without giving effect to its conflicts-of-laws principles. 

IN WITNESS WHEREOF, Seller has caused this Warranty Bill of Sale to be executed by its duly authorized officers as of the date first written
above. 
  

					
		 	China Airlines Ltd. (Seller)
			
	 
 

  
	 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

  
 Exhibit CEX-10.2

 Exhibit 10.2 
  

 

	
	MLS Engine Sale Agreement vo717            

 Private & Confidential 

Engine Sale Agreement 
 between 

MTU Maintenance Lease Services B.V. 
 as Seller 

and 
 Contrail Aviation Support, LLC 

as Buyer 
 Seller and Buyer referred to as a “Party”
and collectively the “Parties” 
 relating to 
 one
(1) CFM56-7B26/3 engine bearing engine serial number 874357’ 
 MLS SH LEGAL 

  

 MLS Engine Sale Agreement v0717 

 
 CONTENTS 

 

							
	1.	  	 Definitions and Interpretation
	  	 	3	 
			
	2.	  	 Sale of Engine
	  	 	4	 
			
	3.	  	 Delivery, Acceptance, Title and Risk
	  	 	4	 
			
	4.	  	 Payments
	  	 	5	 
			
	5.	  	 Conditions precedent
	  	 	5	 
			
	6.	  	 Liability
	  	 	6	 
			
	7.	  	 Representations, Warranties and Undertakings
	  	 	7	 
			
	8.	  	 Notices
	  	 	8	 
			
	9.	  	 Taxes and Indemnities
	  	 	9	 
			
	10.	  	 Costs and Expenses
	  	 	9	 
			
	11.	  	 Termination
	  	 	10	 
			
	12.	  	 Assignment
	  	 	10	 
			
	13.	  	 Miscellaneous
	  	 	10	 
			
	14.	  	 Governing law and Jurisdiction
	  	 	11	 
		
	SCHEDULE 1: TECHNICAL ACCEPTANCE CERTIFICATE	  	 	13	 
		
	SCHEDULE 2: FORM OF BILL OF SALE	  	 	14	 
		
	SCHEDULE 3: DESCRIPTION OF ENGINE	  	 	15	 
		
	SCHEDULE 4: ENGINE DOCUMENTS	  	 	17	 

  

							
	  

Engine Sale Agreement 874357 Contrail MLS
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	 		 	 MLS SH LEGAL

 MLS Engine Sale Agreement v0717 

 
 THIS AGREEMENT is dated September 22, 2017 and made between 

(1) MTU Maintenance Lease Services B.V. (“Seller”), a company duly organised and existing under the laws of The Netherlands; whose registered
address is Strawinskylaan 1639 1077XX Amsterdam, The Netherlands; 
 (2)      Contrail Aviation Support, LLC (or its wholly-owned
designee) (“Buyer”), a company incorporated under the laws of the State of North Carolina, U.S.A. whose registered office is at 435 Investment Court Verona, WI 53593, USA. 

IT IS HEREBY AGREED as follows: 
  

	1.	 Definitions and Interpretation 

 

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

 “Acceptance Certificate” means a certificate of acceptance of the technical condition of the Engine in
the form set out in Schedule 1 to be executed by or on behalf of Buyer and delivered to Seller in accordance with Clause 3.3 
 “Bill
of Sale” means a bill of sale relating to the relevant Engine substantially in the form of Schedule 2; 
 “Business
Day” means any day on which banks are open for business in Amsterdam, The Netherlands and in New York, New York, U.S.A. 

“Delivery” means Seller’s provision of the Engine to Buyer at the Delivery Location; 

“Delivery Date” means the date on which Delivery of the Engine to Buyer occurs; 

“Delivery Location” shall be FCA Kühne & Nagel Warehouse, Velsen-Noord, The Netherlands (Incoterms 2010). 

“Dollars” and “$” mean the lawful currency of the United States of America in relation to all payments in
dollars to be made under this Agreement; 
 “Engine” means one (1) CFM56-7B26/3 engine bearing engine serial number
874357 more specifically described in Schedule 3, together with the Engine Documents and all Parts installed, attached or appurtenant thereto at Delivery of the Engine; 

“Engine Documents” means all data and records supplied by the Manufacturer which are in the possession of Seller and may
include records, logs, manuals, technical data and other materials and documents (whether kept or to be kept in compliance with any regulation of the Aviation Authority or otherwise) relating to the Engine (including, at a minimum, the manuals and
technical records and other media listed in Schedule 4 in respect of the Engine); 
 “Lien” means any mortgage, pledge,
lien, security interest, option, covenant, condition, restriction, encumbrance, charge or other third-party claim of any kind; 

  

							
	  

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	 		 	 MLS SH LEGAL

 MLS Engine Sale Agreement v0717 

 
 “Purchase Price” means $ *      
*             *      
*               *                            
*                         Dollars, such amount being exclusive of Taxes. 
  

	2.	 Sale of Engine 

Seller agrees to sell and Buyer agrees to buy and accept the Engine upon and subject to the terms and conditions of this Agreement, in
“as is” condition, free from all Liens, in consideration of the payment by Buyer of the Purchase Price. 
  

	3.	 Delivery, Acceptance, Title and Risk 

 

	3.1	 Seller will deliver the Engine in serviceable condition, subject to the terms and conditions of this Agreement,
to Buyer at the Delivery Location. Buyer confirms that he will ship the Engine from the Delivery Location to the United Kingdom within ten (10) days from Delivery. 

 

	3.2	 On the Delivery Date, and subject to the terms and conditions of this Agreement, the parties shall close
the transaction in the following manner: 

  

	 	(A)	 Buyer shall pay or have paid to Seller the Purchase Price relating to that Engine; and 

 

	 	(B)	 Seller shall deliver to Buyer the Engine in serviceable condition; and 

 

	 	(C)	 Buyer shall execute and deliver to Seller an Acceptance Certificate in respect of that Engine.

  

	 	(D)	 Immediately upon receipt by Seller of the Acceptance Certificate and the Purchase Price, Seller shall release
to Buyer the Bill of Sale in respect of the Engine. Upon delivery of the Bill of Sale, title to the Engine shall be transferred from Seller to Buyer. 

  

	3.3	 Buyer or its representatives may, at its own cost inspect and verify the condition of the Engine and the Engine
Documents at the Delivery Location or any other location mutually agreed upon. 

  

	3.4	 Upon completion of the closing under Section 3.2, risk of damage to or loss of the Engine shall pass from
Seller to Buyer. 

  

	3.5	 In the event between the date of signing of this Agreement and Delivery, the Engine suffers an Event of Loss,
then Seller shall promptly notify Buyer of such damage and with effect from the date of such Event of Loss, neither Party shall have any further obligations under this Agreement with respect to the Engine, except that any property transferred or
payments received by either Party shall be returned to the other Party with respect to the particular Engine. “Event of Loss” means any of the following events: 

 

	 	(A)	 the loss of the Engine due to theft or disappearance for a period of at least thirty (30) days, destruction,
damage beyond repair or rendition of the Engine permanently unfit for normal use for any reason whatsoever; or 

  

	 	(B)	 the receipt of insurance proceeds based upon an event of loss with respect to the Engine under any insurance
policy pertaining thereto; or 

  

	 	(C)	 the condemnation, confiscation or seizure of, or requisition or loss of title to, or use for a period in excess
of thirty (30) days of the Engine; or 

  

							
	  

Engine Sale Agreement 874357 Contrail-MLS
	 	  

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	 		 	 MLS SH LEGAL

 

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

  

 MLS Engine Sale Agreement v0717 

 
  

	 	(D)	 unrepaired damage to the Engine in which the costs of repair exceeds 20% (twenty percent) of the Purchase
Price. 

  

	3.6	 In the event between the date of signing of this Agreement and Delivery, the Engine suffers damage which does
not constitute an Event of Loss, Seller shall promptly notify Buyer of such damage and the Parties shall jointly determine, each Party acting reasonably, as soon as reasonably practicable whether such damage can be repaired in a manner satisfactory
to Buyer prior to the Delivery Date. If the Parties agree that such damage can be so repaired and Seller elects to do so prior to the Delivery Date, Seller shall procure the repair of such damage as soon as reasonably practicable and if Buyer or
Seller determines that such damage cannot be satisfactorily repaired, or Seller determines that it will not elect to repair the Engine by the Delivery Date, the Party making such determination shall immediately notify the other Party, in writing,
whereupon neither Party shall have any further obligation or liability to the other under this Agreement with respect to the Engine, except that any property transferred or payments received by either Party shall be returned to the other Party with
respect to the particular Engine as if this Agreement had never been formed. 

  

	4.	 Payments 

 

	4.1	 All payments to be made by Buyer to Seller under this Agreement shall be made in immediately available funds by
telegraphic transfer in Dollars to the following account of Seller: 

 Bank: Commerz bank AG, Amsterdam 

Account Holder: MTU Maintenance Lease Services B.V. 

Account No.:
                              
  * 
 IBAN:                                
 * 
 Swift Code:                                
 * 
  

	4.2	 Buyer shall pay to Seller the Purchase Price in respect of the Engine before Delivery. 

 

	5.	 Conditions precedent 

 

	5.1	 The obligation of Seller to sell the Engine to Buyer is subject to the following conditions being fulfilled to
the satisfaction of Seller on or prior to the Delivery Date of an Engine: 

 Receipt by Seller of a certificate issued by a
duly authorised officer of Buyer, attaching and certifying as being true, complete and up-to-date copies of; 

 

	 	(A)	 a resolution of Buyer approving the terms of, and the transactions contemplated by this Agreement; and

  

	 	(B)	 the relevant power, or powers of attorney (If applicable) authorising a specified person or persons to execute
this Agreement and the Acceptance Certificate. 

  

	 	(C)	 The parties having agreed upon the terms for lease of the Engine for a minimum period of 12-months following arrival of the Engine in the UK in accordance with Clause 3.1 above. 

  

	 	(D)	 Completion of VAT tax forms and related documents reasonably satisfactory to the parties.

  

							
	  

Engine Sale Agreement 874357 Contrail-MLS
	 	  

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	 		 	 MLS SH LEGAL

 

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

  

 MLS Engine Sale Agreement v0717 

 
 The conditions specified in this Clause 5.1 are inserted for the sole
benefit of Seller and may be waived in whole or in part and with or without conditions by Seller. 
  

	5.2	 The obligation of Buyer to purchase the Engine from Seller is subject to the following conditions being
fulfilled to the satisfaction of Buyer on or prior to the Delivery Date of that Engine (any one of which may be waived by Buyer to the extent permitted by Law in writing in whole or in part with or without conditions): 

 

	 	(A)	 Receipt by Buyer of a certificate issued by a duly authorised officer of Seller, attaching and certifying as
being true, complete and up-to-date copies of the relevant power, or powers of attorney (if applicable), and any other relevant documents, authorising a specified person
or persons to execute this Agreement and the Bill of Sale and to tender delivery of the Engine on behalf of Seller to Buyer. 

  

	 	(B)	 The Engine being free and clear of Liens. 

 

	 	(C)	 Buyer’s completion of its inspection of the Engine and satisfaction with the results thereof.

  

	 	(D)	 The parties having agreed upon the terms for lease of the Engine for a minimum period of 12-months following arrival of the Engine in the UK in accordance with Clause 3.1 above. 

  

	 	(E)	 Completion of VAT tax forms and related documents reasonably satisfactory to the parties.

 The conditions specified in this Clause 5.2 are inserted for the sole benefit of Buyer and may be waived in whole or in
part and with or without conditions by Buyer. 
  

	6.	 Liability 

 

	6.1	 Seller hereby covenants and agrees upon demand of Buyer and each of its respective affiliates, directors,
officers, employees, partners, employees, successors, assigns, shareholders, investors, parent companies and agents (the “Buyer Indemnitees”) to pay and assume liability for, and to indemnify, protect, defend, save and keep harmless, the
Buyer Indemnitees, on an after-tax basis, from and against any and all liabilities (including liability for negligence or strict liability in tort or under any statute), taxes, fees, duties, charges,
withholdings, obligations, losses, damages, settlements, claims, actions, suits, penalties, costs and expenses (including, without limitation, reasonable fees and expenses of counsel) and expenses of successfully establishing such rights to
indemnification under this indemnity of whatsoever kind and nature which may at any time or from time to time be imposed upon, incurred by or asserted against any Buyer Indemnitee for death of or injury to any persons whomsoever and for loss of,
damage to, or delay in delivery of any property whatsoever (any such losses, the “Buyer Losses”) in any way relating to, resulting from or arising out of the possession, operation, condition, storage, maintenance or repair of the Engine
arising or occurring prior to Delivery of the Engine, provided that the foregoing indemnity shall not apply to the extent that the Buyer Losses resulted from the negligence or wllful misconduct of a Buyer Indemnitee. 

 

	6.2	 Buyer hereby covenants and agrees upon demand of Seller and each of its respective affiliates, directors,
officers, employees, partners, employees, successors, assigns, shareholders, investors, parent companies and agents (the “Seller Indemnitees”) to pay and assume liability for, and to indemnify, protect, defend, save and keep harmless, the
Seller Indemnitees, on an after-tax basis, from and against any and all liabilities (including liability for negligence or strict liability in tort or under any statute), taxes, fees, duties, 

  

							
	  

Engine Sale Agreement 874357 Contrail-MLS
	 	  

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	 		 	 MLS SH LEGAL

 MLS Engine Sale Agreement v0717 

 

	 	charges, withholdings, obligations, losses, damages, settlements, claims, actions, suits, penalties, costs and expenses (including, without limitation, reasonable fees and expenses of counsel) and expenses of
successfully establishing such rights to indemnification under this indemnity of whatsoever kind and nature which may at any time or from time to time be imposed upon, incurred by or asserted against any Seller Indemnitee for death of or injury to
any persons whomsoever and for loss of, damage to, or delay in delivery of any property whatsoever (any such losses, the “Seller Losses”) in any way relating to, resulting from or arising out of the possession, operation, condition,
storage, maintenance or repair of the Engine arising or occurring on or after Delivery, provided that the foregoing indemnity shall not apply to the extent that the Seller Losses result from 1) the negligence or wilful misconduct of a Seller
Indemnitee; 2) the breach of Seller’s obligations, representations or warranties hereunder; or, 3) Seller or Seller Indemnitee’s post-closing acts or omissions as a manufacturer, operator, repairer or service of aviation products.

  

	6.3	 Neither Party shall be liable for any special, incidental or consequential damages which may arise from or in
connection with the performance or failure to perform under the Agreement. 

  

	7.	 Representations, Warranties and Undertakings 

 

	7.1	 Seller represents and warrants to Buyer, on the date of this Agreement and as of the Delivery Date that:

  

	 	(A)	 Seller has sole legal and beneficial title in and to the Engine, free from Liens and Seller has full power and
lawful authority to enter into this Agreement and to transfer such title in and to the Engine to Buyer. 

  

	 	(B)	 Seller is a company established, duly incorporated and validly existing under the Laws of the Netherlands with
full power and authority (corporate and other) to conduct its operations as presently conducted, to own its properties and to execute and deliver, and to perform all of its obligations under this Agreement; 

 

	 	(C)	 The entry into and performance by it of, and the transactions contemplated by, this Agreement do not and will
not: 

  

	 	(1)	 conflict with any laws binding on it; or 

 

	 	(2)	 conflict with the constitutional documents of it; or 

 

	 	(3)	 conflict with or result in default under any document which is binding upon it or any of its assets, nor result
in the creation of any Lien over any of its assets; 

  

	 	(D)	 No Immunity: 

  

	 	(1)	 It is subject to civil commercial law with respect to its obligations under this Agreement; and

  

	 	(2)	 neither it nor any of its assets is entitled to any right of immunity and the entry into and performance of
this Agreement by Seller constitute private and commercial acts. 

  

							
	  

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 MLS Engine Sale Agreement v0717 

 

	7.2	 Buyer represents and warrants to Seller, on the date of this Agreement and as of the Delivery Date that:

  

	 	(A)	 Buyer is a company established, duly incorporated and validly existing under the under the Laws of the State of
North Carolina, U.S.A., with full power and authority (corporate and other) to conduct its operations as presently conducted, to own its properties and to execute and deliver, and to perform all of its obligations under this Agreement;

  

	 	(B)	 It has the power to execute, deliver and perform, and that execution, delivery and performance of this
Agreement and the transactions contemplated therein have been properly authorised; 

  

	 	(C)	 The entry into and performance by it of, and the transactions contemplated by, this Agreement do not and will
not: 

  

	 	(1)	 conflict with any laws binding on it; or 

 

	 	(2)	 conflict with the constitutional documents of it; or 

 

	 	(3)	 conflict with or result in default under any document which is binding upon it or any of its assets, nor result
in the creation of any Lien over any of its assets; 

  

	 	(D)	 No Immunity: 

  

	 	(1)	 It is subject to civil commercial law with respect to its obligations under this Agreement; and

  

	 	(2)	 neither it nor any of its assets is entitled to any right of immunity and the entry into and performance of
this Agreement by Buyer constitute private and commercial acts; 

  

	 	(E)	 Export Control: The Engine and related components are subject to export controls under the U.S. Export
Administration Regulations, 15 C.F.R. Parts 730-774, the International Traffic in Arms Regulations, 22 C.F.R. Parts 120-130 and other export control laws and regulations
of the United States (“Regulations”). Buyer acknowledges that it will comply with all such laws and regulations, and obtain all licenses to export the Engine as may be required. 

 

	8.	 Notices 

Any notice or other communication under or in connection with this Agreement shall be in writing and shall be delivered personally, or by post
(postage prepaid) or facsimile transmission, to the respective addresses or facsimile numbers given below or such other address or facsimile number as the recipient may have notified to the sender in writing. Proof of posting or despatch shall be
deemed to be proof of receipt: 
  

	 	(A)	 in the case of a letter, on the seventh day after posting; 

 

	 	(B)	 in the case of a facsimile transmission, on the day immediately following the date of despatch or transmission;

 to Seller at: 

  

							
	  

Engine Sale Agreement 874357 Contrail-MLS
	 	  

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	 		 	 MLS SH LEGAL

 MLS Engine Sale Agreement v0717 

 
 MTU Maintenance Lease Services B.V. 

Strawinskylaan 1639 

1077XX Amsterdam 
 The
Netherlands 
 Attention: Legal Department 

Fax: +31 20 3052394 
 to
Buyer at: 
 Contrail Aviation Support, LLC 

435 Investment Court Verona 
 WI
53593 
 USA 

Attention:    Joseph Kuhn, President 

Fax:             (608) 848-8101 

 

	9.	 Taxes and Indemnities 

 

	9.1	 The Purchase Price is exclusive of any and all taxes applicable thereto (including, without limitation, any VAT
or other value added or sales taxes). 

  

	9.2	 Buyer shall on demand pay and discharge any taxes (including any payable by Seller) imposed on or in connection
with this Agreement, the Acceptance Certificate and/or the Bill of Sale or otherwise in connection with the transactions contemplated herein; provided, however, that Buyer shall not be liable for any taxes related to Seller’s income.

  

	9.3	 Gross-Up. Buyer shall increase the Purchase Price which would
otherwise be required to be made hereunder so that the Seller is left in the same position as it would have been in had no Taxes been payable. All payments by the Buyer under or in connection with this Agreement shall be made without set-off or counterclaim, free and clear of and without deduction for or on account of all Taxes unless the Buyer is required by law to make any such deduction or withholding. If any Taxes are required to be deducted
or withheld from any amount payable hereunder, the Buyer shall: 

  

	 	(a)	 pay to the Seller such additional amounts in the same currency as such payment as may be necessary in order
that the amount of such payment received by the Seller on the date of such payment, after deduction or withholding for all such taxes, will be equal to the amount that the Seller would have received If such taxes had not been deducted or withheld;

  

	 	(b)	 pay to the relevant authority within the period for payment permitted by applicable law the full amount of the
deduction or withholding; and 

  

	 	(c)	 furnish to the Seller evidence of payment to the relevant authority of all amounts deducted or withheld as
aforesaid. 

  

	10.	 Costs and Expenses 

Save as expressly contained herein, each party shall be responsible for the costs and expenses of its own legal and other professional advisors
in connection with the negotiation, preparation and execution of this Agreement. However, in the event of a dispute under this Agreement, the prevailing party shall be entitled to reasonable attorney fees. 

  

							
	  

Engine Sale Agreement 874357 Contrail-MLS
	 	  

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	 		 	 MLS SH LEGAL

 

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

  

 MLS Engine Sale Agreement v0717 

 
  

	11.	 Termination 

Seller has the right terminate the Agreement in case of Buyer’s non-compliance with clauses 5.1,
6.2, 7.2 and 9. Either party has the right to terminate the Agreement in the event that the closing of this transaction has not been completed by September 29, 2917. 
  

	12.	 Assignment 

Neither Party may assign any of its rights and/or obligations under this Agreement without the prior written consent of the other Party. 

 

	13.	 Miscellaneous 

 

	13.1	 This Agreement contains the entire agreement between Seller and Buyer relating to the sale and purchase of the
Engine, and the terms and conditions of this Agreement shall not be varied otherwise than by an instrument in writing of even date herewith or subsequent hereto executed by or on behalf of each of Seller and Buyer. 

 

	13.2	 No failure or delay on the part of either party hereto in exercising any right, power or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise of any such right, power or remedy. The rights, powers and remedies provided in this Agreement are
cumulative and additional to, and not exclusive of, any rights, powers or remedies provided by Law or otherwise. 

  

	13.3	 This Agreement may be entered into in the form of any number of counterparts, each executed by at least one of
the parties and, provided that all the parties shall so enter into this Agreement, each of the executed counterparts, when duly exchanged or delivered, shall be deemed to be an original but, taken together, they shall constitute one instrument.
Facsimile and PDF copies of signatures shall be treated as original signatures for all purposes. 

  

	13.4	 No term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who
is not a party to this Agreement, except a party’s successor in interest. 

  

	13.5	 Each provision of this Agreement is severable and distinct from the others and, if any provision is or at any
time becomes to any extent or in any circumstances Invalid, illegal or unenforceable for any reason, it shall to that extent or in those circumstances, be deemed not to form part of this Agreement but (except to that extent or in those circumstances
in the case of that provision) the validity, legality and enforceability of that and all other provisions of this Agreement shall not be affected or impaired, it being the parties’ intention that every provision of this Agreement shall be and
remain valid and enforceable to the fullest extent permitted by Law. 

  

	13.6	 Each of the parties undertakes with the other to do and perform such other and further acts and execute and
deliver any and all other instruments as may be required by Law or reasonably required by the other party in order to establish, maintain and protect the rights and remedies of that party and to carry out and effect the intent and purpose of this
Agreement. 

  

							
	  

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 MLS Engine Sale Agreement v0717 

 
  

	13.7	 Neither Seller nor Buyer shall without the other’s prior written consent, communicate or disclose the
contents of this Agreement to any third party (other than to their respective external legal advisors, auditors, insurance brokers and for underwriters or those of the airframe) provided however that disclosure will be permitted:

  

	 	(A)	 pursuant to an order of any court of competent jurisdiction; 

 

	 	(B)	 pursuant to any procedure for discovery of documents in any proceedings before any such court;

  

	 	(C)	 pursuant to any law or regulation having the force of law; 

 

	 	(D)	 pursuant to a lawful requirement of any authority with whose requirements the disclosing party is legally
obliged to comply; or 

  

	 	(E)	 to effect any registrations, filings or recordations of the Engine. 

 

	14.	 Governing law and Jurisdiction 

 

	14.1	 This Agreement and any contractual or non-contractual obligations
arising out of or in connection with this Agreement shall be governed by, and construed in accordance with, the laws of New York, U.S.A., without reference to provisions governing conflicts of laws. The U.N. Convention on Contracts for the
International Sales of Goods is not applicable to this Agreement. 

  

	14.2	 Seller and Buyer each agree that in any legal action or proceedings against it or its assets in connection with
this Agreement no immunity from such legal action or proceedings (which shall include, without limitation, suit, attachment prior to judgment, other attachment, the obtaining of judgment, execution or other enforcement) shall be claimed by or on
behalf of Seller and/or Buyer or with respect to its assets, irrevocably waives any such right of immunity which it or its assets now have or may hereafter acquire or which may be attributed to it or its assets and consents generally in respect of
any such legal action or proceedings to the giving of any relief or the issue of any process in connection with such action or proceedings including, without limitation, the making, enforcement or execution against any property whatsoever,
(irrespective of its use or intended use) of any order or judgment which may be made or given in such action or proceedings. 

  

	14.3	 Each party irrevocably agrees that the federal courts located in the State of New York shall have exclusive
jurisdiction to settle any dispute or claim arising out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or claims). 

IN WITNESS whereof the parties hereto have caused this Agreement to be duly executed as a deed the day and year first above written. 

[signature page to follow] 

  

							
	  

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 MLS Engine Sale Agreement v0717 

 
 EXECUTION PAGE 

ENGINE SALE AGREEMENT – ESN 874357 
 MTU MAINTENANCE
LEASE SERVICES B.V. (SELLER) 
  

			
	Date:	 	22/03/2017
	Signature:	 	/s/ Xavier Schmid
	Title:	 	CFO-Director Finance
	Name:	 	Xavier Schmid

 Contrail Aviation Support, LLC (Buyer) 

Date:    9/22/2017 
  

									
	Signature:	 	/s/ Joseph Kuhn	 		 	Signature:	 	

									
					
	Title:	 	 President & CEO
	 		 	Title:	 	  

					
	Name:	 	 Joseph Kuhn
	 		 	Name:	 	  

  

							
	  

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 MLS Engine Sale Agreement v0717 

 
 ACCEPTANCE CERTIFICATE 

Contrail Aviation Support, LLC (the “Buyer”) hereby acknowledges that at 12:00 hours (CST time) on September 28, 2017 the technical
condition of the CFM56-7B26/3 engine bearing engine serial number 874357 (the “Engine”) is satisfactory to, and accepted by, Buyer (the Engine having been inspected by Buyer). 

 

	
	SIGNED for and on behalf of
	
	Contrail Aviation Support, LLC
	
	 /s/ Joseph Kuhn

	Joseph Kuhn
	President and CEO
	
	Duly Authorised Officer

  

							
	  

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 MLS Engine Sale Agreement v0717 

 
 BILL OF SALE 

For valuable consideration, the receipt and sufficiency of which is hereby acknowledged, MTU Maintenance Lease Services B.V. (“Seller”) in respect
of: 
  

	1.	 one (1) CFM56-7B26/3 engine bearing engine serial number 874357 and all equipment, accessories and parts
belonging to, installed in or appurtenant to such engine; and 

  

	2.	 the Engine Documents, 

referred to herein as the “Engine” does hereby sell, grant, transfer and deliver all its right, title and interest in and to the Engine to
Contrail Aviation Support, LLC (“Buyer”) under an engine sale agreement dated September 22, 2017 between Seller and Buyer (the “Sale Agreement”), subject to and in accordance with the provisions of the Sale
Agreement. 
 Seller hereby warrants to Buyer, its successors and assigns that Seller hereby conveys to Buyer good and marketable title in and to the Engine
in accordance with the provisions of the Sale Agreement, and conveys full legal and beneficial title to the Engine to Buyer free and clear of Liens. 

Unless otherwise defined herein or the context requires otherwise, capitalised terms in this Bill of Sale but not otherwise defined herein shall have the same
meaning as used in the Sale Agreement (whether defined therein or incorporated therein by reference), and the Governing Law and Jurisdiction clause of the Sale Agreement (clause 14) shall apply hereto. 

IN WITNESS WHEREOF Seller has caused this Bill of Sale to be duly executed at 16.00 hours (CET time) this 29th day of September 2017. 

 

			
	MTU MAINTENANCE LEASE SERVICES B.V. (Seller)

  

 

			
	Date:	 	29/09/2017

  

			
	Signature:	 	/s/ Xavier Schmid

  

			
	Title:	 	CFO-Director Finance

  

			
	Name:	 	Xavier Schmid

  

							
	  

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 MLS Engine Sale Agreement v0717 

 
 SCHEDULE 3: DESCRIPTION OF ENGINE 

ENGINE 
  

			
	Manufacturer:	 	CFM International
		
	Type:	 	CFM56-7
		
	Manufacturer’s Serial Number:	 	 874357

		
	Thrust rating (at start of the lease):	 	*        
		
	QEC/EBU:	 	See Attachment 1 to this Schedule 3
		
	Engine Stand:	 	None
		
	Engine Documents and Records:	 	Listed below

  

							
	  

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	 		 	 MLS SH LEGAL

 

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

  

 MLS Engine Sale Agreement v0717 

 
 Attachment 1 to Schedule 3 

QEC/EBU List 

  

							
	  

Engine Sale Agreement 874357 Contrail-MLS
	 	  

16                
	 		 	 MLS SH LEGAL

 MLS Engine Sale Agreement v0717 

 
 SCHEDULE 4: ENGINE DOCUMENTS 

 

	1.	 Latest EASA form 1 and FAA Form 8130-3. 

 

	2.	 Logbook or equivalent On/Off log showing aircraft tail number, date on & off, hours and cycles of
engine since new, reason for removal and location of this action. 

  

	3.	 Latest LLP status listing all tracked parts in accordance with the applicable EMM Chapter 5 and listing the
Manual revision date. 

  

	4.	 Latest and up to date AD Compliance Statement & SB applicability and compliance listing. Includes all
dirty finger print workcards and certificates of all ADs carried out on any / all LLPs installed. 

  

	5.	 Latest ECM trent monitoring data including EGTM, Oil Pressure, Fuel Flow, Vibrations, Oil Temperature, Derate,
RPMs etc at take off. 

  

	6.	 Accessory and QEC listing including MFG P/N and S/N. 

 

	7.	 All Engine shop visit report incl. workscope, history and dirty finger print cards, including LLP records.

  

	8.	 All non incident statements issued 

 

	9.	 All preservation tags or records. 

 

	10.	 All warranties still applicable to each engine. 

 

	11.	 No DER repairs and PMA parts statements. 

  

							
	  

Engine Sale Agreement 874357 Contrail-MLS
	 	  

17                
	 		 	 MLS SH LEGAL

 POWER OF ATTORNEY 

1, Joseph Kuhn, President and CEO of Contrail Aviation Support, LLC (the “Company”), a limited liability company duly organized and existing
under the laws of the State of North Carolina, U.S.A., do hereby designate, authorise and empower any and each one of the following named individuals, acting individually or collectively, as the Company’s true and lawful attorney-in-fact (each an “Attorney”) to: 
  

	(A)	 agree, make, sign and execute any and all of the documents (the “Documents”) in connection
with the purchase and leasing of one CFMS6-7 engine with ESN 874357 (the “Engine”) from and to MTU Maintenance Lease Services B.V., a legal entity organized under the laws of
Amsterdam, The Netherlands; 

  

	(B)	 to make, give, sign, execute and do all such deeds arrangements, instruments, applications, oaths, affidavits,
declarations, notices, confirmations, certificates, approvals, acknowledgements, acceptances, deliveries and all other acts, matters and things whatsoever, in connection with the preparation, signature, execution and delivery of the Documents or any
other documents required to be executed by the Company in connection with them, or the performance of any acts, matters and things therein contemplated; and 

  

	(C)	 to acknowledge this Power of Attorney as the act and deed of the Company and generally to do all other acts
which may be necessary and desirable for carrying the purpose of this Power of Attorney into effect. 

 I hereby certify that the
following are the true signatures of: 
  

					
	 Name
	 	 Title
	  	 Signature

	    Joseph Kuhn	 	President and CEO	  	/s/ Joseph Kuhn
	    Sebastian Lourier	 	Director of Leasing and Asset Management	  	/s/ Sebastian Lourier

 IN WITNESS WHEREOF, I hereby sign my name as Joseph Kuhn on behalf of the Company effective as of the 27th day of
September, 2017 in Verona, Wisconsin, U.S.A. 
  

	
	CONTRAIL AVIATION SUPPORT, LLC
	
	 /s/ Joseph Kuhn

	Name: Joseph Kuhn
	Title: President and CEO

  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission.

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