Document:

Exhibit

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

EXECUTION VERSION

THIS THIRD AIRCRAFT LEASE AMENDMENT AGREEMENT (this “Amendment
Agreement”) is made on 2 August 2019.

BETWEEN

		
	(1)
	SAPPHIRE AVIATION FINANCE I (UK) LIMITED, a company incorporated under the applicable laws of England, and having its registered office at 3rd Floor, Suite 2, 11-12 St.

James’s Square, London, SW1Y 4LB, England (the “Lessor”); and

		
	(2)
	MIAT MONGOLIAN AIRLINES, a joint stock company organized and existing under the laws of Mongolia and having its principal place of business at ChingissKhaan International airport, Buyant-Ukhaa -45, Ullanbaatar, Mongolia (“Lessee”).

Lessor and Lessee each a “Party”, collectively, the “Parties”.

BACKGROUND

		
	(A)
	CIT Capital Aviation (UK) Limited (“Original Lessor”) and Lessee entered into an Aircraft Lease Agreement, dated as of 28 January 2008 (as amended, novated, restated, assigned or supplemented from time to time including by the lease supplement dated as of 21 April 2008 between Original Lessor and Lessee, the aircraft lease amendment agreement dated 22 December 2014 between Original Lessor and Lessee, the Novation and Amendment Agreement dated 26 July 2018 between Original Lessor and Lessee, the Amendment to Aircraft Lease Agreement dated 20 November 2018 between Lessor and Lessee, and each of the other Lease Documents (as defined below), the “Lease”), pursuant to which Lessor, as assignee and successor of Original Lessor, has leased to Lessee one (1) Boeing 737-800 aircraft bearing manufacturer’s serial number 29922 and Irish registration mark EI-CSG together with two (2) CFM56-7B24 engines bearing manufacturer’s serial numbers 890420 and 890421, (collectively, the “Aircraft”).

		
	(B)
	The Parties now wish to amend the Lease subject to the terms and conditions set out herein.

IT IS NOW AGREED

1    DEFINITIONS AND INTERPRETATION

1.1    Except as otherwise defined herein and except where the context requires otherwise, words and
expressions which are defied in the Lease (whether expressly or by incorporation therein) shall have
the same respective meanings when used in this Amendment Agreement (including the Recitals).

1.2    The rules of interpretation set out in Section 1 (Definitions and Interpretation) of the Lease shall apply
to this Amendment Agreement as if set out in full therein provided that references therein to the
“Lease” shall be construed as references to this Amendment Agreement.

2    AMENDMENTS TO THE LEASE

With effect from the date hereof, the Lease shall be amended as follows:

2.1    Definitions

Appendix 1 shall be amended as follows:
- 1 -

(i)    In the definition of “Operative Document(s)” the words “the Third Aircraft Lease
     Amendment Agreement” shall be inserted after “the Lease”.

(ii)    The following new definitions shall be inserted:

““Third Aircraft Lease Amendment Agreement” means the aircraft lease amendment agreement dated on or about 2 August 2019 between Lessor and Lessee with respect to the Aircraft.”

2.2    Return Conditions

Upon receipt by Lessor of US$ [          ] in cleared funds, on an after-tax basis, (the “Buyout Amount”) on or before the Return, the Lease shall be amended as follows:

2.2.1    Section 12.8(d)(ii) shall be deleted in its entirely and replaced as follows:

“with respect to Time Controlled Parts, have not accumulated more time since new (and time since Overhaul if such replaced Part has previously been overhauled) more than one hundred and ten per cent (110%) of the time since new (or time since Overhaul as the case may be) of that of the replaced Part, except for the Time Controlled Parts listed in Exhibit A of the Third Aircraft Lease Amendment Agreement, including other Time Controlled Parts which are replaced after the date of the Third Aircraft Lease Amendment Agreement, due to subsequent, (i)AMM requirements, (ii) MPD requirements, or (iii) to support AOG operations as demonstrated by Lessee.”

2.2.2    Section 1.2 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as
follows:

“Exterior washing and interior cleaning of the Aircraft shall not be required.”

2.2.3    The following wording shall be added at the end of Section 1.5 of Appendix 2E (Return 
Conditions):

“In the event that the Scheduled Termination Date is not extended to March 2020, the Lessee shall not be required to make the modification to the Controller-Pilot Data Link Communications and ADS B-Out which becomes effective so as to comply with the relevant EASA requirements in force at the relevant time.”

2.2.4    Section 2 (Paint) of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced
as follows:

“The Aircraft fuselage, engine cowls and outboard main wheel covers shall be accepted by Lessor in an “as-is” condition. All required placards and markings shall be in the English language and shall be replaced if not in English, or if deteriorated from the condition at Delivery.”

2.2.5    Section 3 (Airframe) of Appendix 2E (Return Conditions) shall be deleted in its entirely and
replaced as follows:

“Immediately prior to Return, the Aircraft shall have completed an A-Check in accordance with the Airframe Manufacturer’s MPD, without any deferred items. The A-Check shall be performed by an Approved Maintenance Organization approved by Lessor. Lessee shall give Lessor not less than ten (10) Business Days’ prior written notice of the commencement date of such A-Check.”

-2-

2.2.6    Section 4.2 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as
follows:

“Lessee may return the Aircraft to Lessor at Return with visible crazing and delaminations on the cockpit windows. The cockpit windows shall not have any other defects that exceed allowable limits set forth in the Manufacturer’s Repair Manual.”

2.2.7    Section 4.3 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as
follows:

“Lessee may return the Aircraft to Lessor at Return with visible crazing and delaminations on the passenger compartment windows.”

2.2.8    Section 4.4 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as
follows:

“All equipment and furnishings in the interior of the Aircraft that are defective, damaged, or excessively worn shall be repaired in accordance with the Manufacturer's recommended repair procedures, or replaced by Lessee, with the exception of the (i) cabin passenger seats, (ii) cushions, (iii) carpets and (iv) curtains, only which shall be returned in “as is” condition.”

2.2.9    Section 5.2 of Appendix 2E (Return Conditions) shall be deleted in its entirely and replaced as
follows:

“(a) In respect of the Engine with Engine Serial Number 890420, each Engine Life Limited Part shall have a minimum of twenty (20) Cycles remaining to the Engine Manufacturer’s then- published life limit for each such Engine Life Limited Part (based on twenty four thousand pounds (24,000 lbs) of thrust).

(b) In respect of the Engine with Engine Serial Number 890421, each Engine Life Limited Part shall have a minimum of four hundred (400) Cycles remaining to the Engine Manufacturer’s then-published life limit for each such Engine Life Limited Part (based on twenty four thousand pounds (24,000 lbs) of thrust).”

2.2.10    The following wording shall be added at the end of the Section 6.1 of Appendix 2E (Return
Conditions):

“Such redelivery flight check can be performed as part of the Lessee’s ferry flight to the Redelivery Location (the Redelivery Location being Marana, Arizona, unless otherwise notified to the Lessee, in the sole discretion of the Lessor). In such case, all discrepancies found during such redelivery check flight which exceed or are outside the Manufacturer’s Repair Manual allowable limits shall be corrected by Lessee at Lessee’s expense, or, Lessor and Lessee may elect at Redelivery that Lessee pay financial compensation (in an amount to be reasonably agreed between Lessor and Lessee) to Lessor in lieu of resolving such discrepancies.”

For avoidance of doubt, if the Buyout Amount is not timely received by Lessor, the amendment referred to in this Section 2 shall be of no force or effect.

3    CONDITIONS PRECEDENT

3.1    The transactions contemplated herein are subject to satisfaction of the following:

(a)    each of the representations and warranties of Lessee in Section 4.1 below shall be true and
correct as of the effective time of this Amendment Agreement; and

-3-

(b)    receipt of evidence of all corporate action and approvals required to carry out the transactions
contemplated herein

4    REPRESENTATIONS AND WARRANTIES

4.1    Lessee Representations. On the date hereof, Lessee represents and warrants to Lessor:

(a)    Status. It is a corporation duly incorporated and validly existing under the laws of the
Jurisdiction of where it has been incorporated and has the power to own its assets and carry
on its business as it is now being conducted and to enter into this Amendment Agreement
and perform its obligations hereunder;

(b)    No Conflict. The execution and delivery by Lessee of this Amendment Agreement, the
consummation of such transactions contemplated herein and compliance with the terms and
provisions hereof:

(i)    are within its corporate powers;

(ii)    do not and will not result in a violation of such party’s charter, by laws or other
organisational or constitutional documents as currently in effect; and

(iii)    do not and will not conflict with or result in a breach of any term or provision of,
or constitute a default under, or result in the imposition of a Lien upon this
Amendment Agreement under any indenture, mortgage, or other agreement or
instrument to which Lessee is a party or by which it or any of its properties, is or
may be bound, or any existing applicable Law, rule, or regulation, or any judgment,
order or decree of any Governmental Authority having jurisdiction over Lessee or
 any of its properties;

(c)    Legal Validity. This Amendment Agreement has been duly authorised, executed and
delivered by Lessee and constitutes legal, valid and binding obligations of Lessee,
enforceable against Lessee in accordance with its terms, except as its enforceability may be
limited by bankruptcy, insolvency, reorganisation and other laws of equity (regardless of
whether such proceeding is considered a proceeding in equity or law);

(d)    Consents. Lessee has received every consent, approval or authorisation of, and has
given every notice to, each Governmental Authority having jurisdiction with respect to the
execution, delivery, validity, enforceability, admissibility into evidence or performance of
this Amendment Agreement, and to perform the transactions contemplated hereby and each
such consent, approval or authorisation is valid and effective and has not been revoked and
there has been no default in the observance of any of the conditions or restrictions (if any)
imposed in, or in connection with, any of the same;

(e)    No Claims. Lessee is not aware of any claims or actions under the Lease pending or threatened
 against Lessor by Lessee;

(f)    No Event of Loss.  No Event of Loss or event which with the passage of time would become
an Event of Loss has occurred; and

(g)    No Default. No Default or Event of Default has occurred and is continuing or might result
 from the entry into or performance of this Amendment Agreement by Lessee.

-4-

4.2    Lessor Representations. On the date hereof, Lessor represents and warrants to Lessee:

(a)    Status. It is a corporation duly incorporated and validly existing under the laws of the
jurisdiction of where it has been incorporated and has the power to own its assets and carry
on its business as it is now being conducted and to enter into this Amendment Agreement
 and perform its obligations hereunder;

(b)    No Conflict. The execution and delivery by Lessor of this Amendment Agreement, the 
consummation of such transactions contemplated herein and compliance with the terms and 
provisions hereof

(i)    are within its corporate powers;

(ii)    do not and will not result in a violation of such party’s articles of association, by 
laws or other organisational or constitutional documents as currently in effect; and

(iii)    do not and will not conflict with, or result in a breach of any term or provision of, 
or constitute a default under, or result in the imposition of a Lien upon this 
Amendment Agreement under any indenture, mortgage, or other agreement or 
instrument to which Lessor is a party or by which it or any of its properties, is or 
may be bound, or any existing applicable Law, rule, or regulation, or any judgment, 
order or decree of any Governmental Authority having jurisdiction over Lessor or 
any of its properties,

(c)    Legal Validity. This Amendment Agreement has been duly authorised, executed and 
delivered by Lessor and constitutes legal, valid and binding obligations of Lessor, enforceable 
against Lessor in accordance with its terms, except as its enforceability may be limited by 
bankruptcy, insolvency, reorganisation and other laws of equity (regardless of whether such 
proceeding is considered a proceeding in equity or law); and

(d)    Consents. Lessor has received every consent, approval or authorisation of, and has given 
every notice to, each Governmental Authority having jurisdiction with respect to the 
execution, delivery, validity, enforceability, admissibility into evidence or performance of 
this Amendment Agreement, and to perform the transactions contemplated hereby and each 
such consent, approval or authorisation is valid and effective and has not been revoked and 
there has been no default in the observance of any of the conditions or restrictions (if any) 
imposed in, or in connection with, any of the same.

5    MISCELLANEOUS

5.1    Governing Law. This Amendment Agreement (including any non-contractual obligations arising out 
of or in connection with the same) shall be governed by and construed in accordance with the laws 
of England. The provisions of section 26 (Law and Jurisdiction) of the Lease will be deemed to be 
set out herein mutatis mutandis in their entirety but as if any reference to “this Lease” were a reference 
instead to this Amendment Agreement.

5.2    Notices. The provisions of section 27.18 (Notices) of the Lease shall apply to this Amendment 
Agreement as if set out herein in full, mutatis mutandis in their entirety but as if any reference to “this 
Lease” were a reference instead to this Amendment Agreement.

-5-

5.3    Counterparts. This Amendment Agreement may be executed simultaneously in two or more 
counterparts and by different parties hereto on separate counterparts, each of which shall be deemed 
an original, but all of which together shall constitute one and the same instrument.

5.4    Delivery of Documents by Electronic Means. Delivery of an executed counterpart of this 
Amendment Agreement by fax or other electronic image file will be deemed as effective as delivery 
of an originally executed counterpart. Any Party delivering an executed counterpart of this Amendment 
Agreement by fax or other electronic image file will also deliver an originally executed counterpart, 
but the failure of any Party to deliver an originally executed counterpart of this Amendment Agreement 
will not affect the validity or effectiveness of this Amendment Agreement.

5.5    Operative Document. This Amendment Agreement shall be deemed to be an “Operative Document” 
for the purposes of and as defined in the Lease.

5.6    No Further Amendment. Save as amended and supplemented by this Amendment Agreement, each 
of the Parties hereto acknowledges and agrees that the provisions of the Lease shall continue and 
remain in full force and effect in all respects and the Lease and this Amendment Agreement shall be 
read and construed together.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS whereof the parties hereto have caused this Amendment Agreement to be duly executed on the date first above written.

The Lessor

SAPPHIRE AVIATION FINANCE I (UK) LIMITED

By: _______________________________

Name:  ____________________________

Title:    Director

The Lessee

MIAT MONGOLIAN AIRLINES

By:  ______________________________

Name:  ____________________________

Title:    President and CEO

By: _______________________________

Name:  ____________________________

Title:    Senior Vice President

- Signature Page -
MIAT Mongolian Airlines
Third Aircraft Lease Amendment Agreement
Boeing 737-800 MSN 29922
18172098v1

Exhibit A

Time Controlled Parts

MIAT Mongolian Airlines
Third Aircraft Lease Amendment Agreement 
Boeing 737-800 MSN 29922

El-CSG Hard Time Status
	
		
	Date:
	25-Apr-19

	TSN:
	51634

	CSN:
	29794

	
											
	MPD
	Description
	Task
	P/N
	S/N
	Position
	Last check
	Interval
	Next Due
	Remain
	Certificates

	21-100-00
	Clean the primary and secondary heat exchangers.
	RST
	/
	/
	 
	/
	0
	0
	0
	ARL

	28948
	2000 FC
	30948
	1154

	30-Jul-18
	1 Yr
	30-Jul-19
	96

	 
	Cylinder HST
	HST
	4A3904-5
	IY18142
	FWD LH
	/
	0
	0
	0
	Indicating DOM info

	/
	0
	0
	0

	1-Dec-17
	5 Yrs
	29-Nov-22
	1314

	 
	Cylinder Discard
	DIS
	4A3904-5
	IY18142
	FWD LH
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	1-Jan-11
	15 Yrs
	25-Dec-25
	2436

	25-410-00
	Discard the smoke hoods at the manufacturer’s
	DIS
	802300-14
	E14120555
	COCKPIT
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	1-Dec-14
	10 Yrs
	1-Dec-24
	2047

	25-410-00
	Discard the smoke hoods at the manufacturer’s
	DIS
	802300-14
	E10100293
	FWD ATT
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	1-Oct-10
	10 Yrs
	1-Oct-20
	525

	25-410-00
	Discard the smoke hoods at the manufacturer’s
	DIS
	802300-14
	E10100294
	FWD ATT
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	1-Oct-10
	10 Yrs
	1-Oct-20
	525

	25-410-00
	Discard the smoke hoods at the manufacturer’s
	DIS
	E28180-20-0006
	ASEF02138
	AFT ATT
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	1-Jun-16
	10 Yrs
	28-May-26
	2590

	25-410-00
	Discard the smoke hoods at the manufacturer’s
	DIS
	802300-14
	E10100295
	AFT ATT
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	1-Oct-10
	10 Yrs
	1-Oct-20
	525

	25-410-00
	Discard the smoke hoods at the manufacturer’s
	DIS
	802300-14
	E12110362
	AFT ATT
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	1-Nov-12
	10 Yrs
	28-Oct-22
	1282

	25-410-00
	Discard the smoke hoods at the manufacturer’s
	DIS
	E28180-10
	A5CF84037
	AFT ATT
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	1-Jul-17
	10 Yrs
	27-Jun-27
	2985

	25-430-00
	Restore the medical kits
	RST
	509278
	0004
	FWD
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	31-Jan-19
	1 Yr
	31-Jan-20
	281

	26-MNG-03
	Restore engine fire bottles by hydrostatic testing
	RST
	33700002
	27334D1
	ENG 2
	/
	0
	0
	0
	Overhauled indicating DOM info

	/
	0
	0
	0

	7-Mar-17
	5 Yrs
	5-Mar-22
	1045

	26-290-00
	Inspect lavatory waste compartment fire bottles for correct weight
	DET
	30100022-33
	NSN
	Lav A
	/
	0
	0
	0
	ARL

	/
	0
	0
	0

	20-Mar-17
	5 Yrs
	18-Mar-22
	1058

	26-290-00
	Inspect lavatory waste compartment fire bottles for correct weight
	DET
	30100022-33
	NSN
	Lav D
	/
	0
	0
	0
	ARL

	/
	0
	0
	0

	20-Mar-17
	5 Yrs
	18-Mar-22
	1058

	26-290-00
	Inspect lavatory waste compartment fire bottles for correct weight
	DET
	30100022-33
	NSN
	Lav E
	/
	0
	0
	0
	ARL

	/
	0
	0
	0

	20-Mar-17
	5 Yrs
	18-Mar-22
	1058

	26-MNG-05
	Restore cargo compartment fire bottle by hydrostatic
	RST
	34600010-28
	39095F1
	CARGO
	/
	0
	0
	0
	Overhauled indicating DOM info

	/
	0
	0
	0

	17-Apr-18
	5 Yrs
	15-Apr-23
	1451

	26-470-00
	Inspect the portable water fire exting for condition
	DET
	892480
	30925
	RH
	/
	0
	0
	0
	NEW

	/
	0
	0
	0

	19-Feb-19
	1 Yr
	19-Feb-20
	300

	26-MNG-07
	Restore portable water fire extinguisher by HST
	RST
	892480
	30925
	RH
	/
	0
	0
	0

	/
	0
	0
	0

	2-Oct-15
	5 Yrs
	29-Sep-20
	523

	35-040-00
	Discard the flight crew oxygen cylinder
	DIS
	801307-00
	539114
	Crew
	/
	/
	/
	/
	Inspected Indicating DOM info

	/
	/
	/
	/

	1-Jun-05
	15 Yrs
	1-Jun-20
	403

	35-MNG-01
	Restore flight crew oxygen cylinder by hydrostatic testing
	HST
	801307-00
	539114
	Crew
	/
	0
	0
	0
	Inspected Indicating DOM info

	/
	0
	0
	0

	1-Jul-17
	60 Mo
	1-Jun-20
	403

	35-MNG-02
	Restore portable oxygen cylinders by hydrostatic
	OH
	5500-A1A-BF23A
	563232
	MID
	/
	0
	0
	0
	Overhauled Indicating DOM info

	/
	0
	0
	0

	27-Mar-15
	5 Yrs
	24-Mar-20
	334

	35-MNG-02
	Restore portable oxygen cylinders by hydrostatic
	OH
	5500-A1A-BF23A
	135088
	MID
	/
	0
	0
	0
	Overhauled Indicating DOM info

	/
	0
	0
	0

	30-Jun-17
	5 Yrs
	28-Jun-22
	1160

Exhibit A to Second Lease Amendment (29922) 2019-07-24Exhibit

EXECUTION VERSION

BUYER GUARANTEE (MSN 29922)

THIS BUYER GUARANTEE (MSN 29922) (this “Guarantee”) is dated as of August 2, 2019, between:

(1)CONTRAIL AVIATION SUPPORT, LLC, a limited liability company organized and existing under the laws of the State of North Carolina, United States of America, having its principal place of business at 435 Investment Court, Verona, Wisconsin 53593, United States of America (“Guarantor”); and

(2)SAPPHIRE LEASING I (AOE 5) LIMITED, a company incorporated under the laws of Ireland and having its registered office at c/o PAFS Ireland Limited, Shannon Business Park, Shannon, Co. Clare, Ireland (“Seller”).

WHEREAS, as a condition to Seller’s participation in the transactions contemplated by the Sale Agreement (as defined below), Guarantor is required to guarantee Purchaser’s (as defined below) performance and compliance with all of the covenants, agreements, and obligations of Purchaser contained in the Sale Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1.Definitions. Unless the context otherwise requires, the following terms shall have the following meanings for all purposes of this Guarantee and shall be equally applicable both to the singular and plural forms of the terms defined. Any capitalized terms not defined herein shall have the meanings ascribed to them in the Sale Agreement.

“Guaranteed Agreements” means the Sale Agreement and the other Transaction Documents to which Purchaser is a party.

“Guaranteed Obligations” means all of Purchaser’s obligations to the Seller under the Guaranteed Agreements (whether actual or contingent, whether now existing or hereafter arising owed to the Seller), and compliance with, all obligations, covenants, terms, conditions and undertakings of Purchaser contained in the Guaranteed Agreements.

“Purchaser” means Wilmington Trust SP Services (Dublin) Limited, not in its individual capacity, but solely as owner trustee and having its principal place of business at Fourth Floor, 3 George’s Dock, IFSC, Dublin 1, D01 X5X0, Ireland.

“Sale Agreement” means the Aircraft Asset Sale and Purchase Agreement dated as of the date hereof (as may be further amended, modified or supplemented from time to time), concerning one (1) Boeing model 737-800 aircraft, bearing manufacturer’s serial number 29922.

2.Representations and Warranties of Guarantor. Guarantor represents and warrants to the Seller, as of the date hereof, as follows:

(a)it is duly organized and validly existing under the laws of its jurisdiction of organization and has the power and authority to carry on its business as it is being conducted;

(b)the execution and delivery of this Guarantee, the consummation of the transactions contemplated herein, and compliance with the terms and provisions hereof are within Guarantor’s limited liability company powers and do not and will not result in any violation of its charter, by-laws or other constitutional documents or any applicable law, rule, regulation, judgment or court order as currently in effect or any provision in any existing agreement binding on Guarantor;

(c)all authorizations, consents, registrations and notifications required to be obtained by Guarantor in connection with the entry into, performance, validity and enforceability of this Guarantee and the transactions contemplated by this Guarantee, have been (or will be on or before the date hereof) obtained or effected (as appropriate) and are in full force and effect;

(d)neither the execution, delivery nor performance of this Guarantee requires any member approval or the approval or consent of any trustee or any holder of any indebtedness or obligation of Guarantor, and if any approval or consent is required, then such approval or consent has been obtained.

(e)no consent or approval of, giving of notice to, registration with, or taking of any action in respect of or by, any national or local governmental authority or agency of Guarantor’s jurisdiction of formation or any other government agency or authority or other Person is required with respect to the execution, delivery or performance by Guarantor of this Guarantee.

(f)there are no actions, suits or proceedings pending, or to Guarantor’s knowledge threatened, against Guarantor, that, if adversely determined, would hinder or prevent Guarantor’s performance of this Guarantee; and

(g)this Guarantee has been duly executed and delivered by Guarantor; and this Guarantee will be, upon due execution and delivery hereof, a legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms, except as its enforceability may be limited by bankruptcy, insolvency, reorganization and other laws of general application affecting the enforcement of creditors’ rights and general principles of equity (regardless of whether such proceeding is considered a proceeding in equity or at law).

		
	3.
	Guarantee.

(a)In consideration of Seller entering into the Sale Agreement and for other good and valuable consideration (the receipt and sufficiency whereof is hereby acknowledged), Guarantor, with effect from the date hereof, unconditionally and irrevocably, as a continuing obligation and guarantee of performance, without set-off, abatement, deferment or deduction, guarantees to Seller the prompt payment and performance by Purchaser of the Guaranteed Obligations and undertakes with Seller that whenever the Purchaser does not promptly pay or perform the Guaranteed Obligations when due, Guarantor shall promptly pay upon the written demand from

the Seller the amount set forth in the demand or perform (or procure the performance of) the Guaranteed Obligation as if it were the principal obligor.

(b)Guarantor as a principal obligor and not merely as surety, and as a separate and independent primary stipulation shall indemnify Seller upon written demand against any documented loss, liability or cost or expense suffered by Seller (including reasonable attorneys’ fees and disbursements incurred by Seller in the enforcement of this Guarantee) if (i) it does not perform the Guaranteed Obligations or (ii) any Guaranteed Obligation becomes unenforceable, void, illegal or ineffective as against the Guarantor, the amount of such loss or liability being the amount which the Seller would otherwise be entitled to recover from Guarantor.

(c)Guarantor shall make any payment (including payments of damages for breach of the Guaranteed Agreements by Purchaser) or procure the performance of or compliance with any Guaranteed Obligation set forth in a demand letter within five (5) Business Days of Guarantor’s receipt of such written demand to an account indicated by the Seller in the demand, all subject to the requirements of, and conditions associated with, the Guaranteed Obligations.

(d)The guarantee by Guarantor contained in this Section 3 is a primary obligation of Guarantor, is in addition to and not in substitution for any other security which Seller may now or hereafter hold for the obligations of Purchaser under the Guaranteed Agreements and is an unconditional, absolute, present and continuing obligation and is not conditional in any way upon the institution of suit or the taking of any other action or any attempt to enforce performance of or compliance with the covenants, agreements, terms or conditions (including without limitation any payment obligations) applicable to Purchaser contained in the Guaranteed Agreements and, to the extent permitted by law, shall be binding upon and enforceable against Guarantor without regard to the validity or enforceability of the Guaranteed Agreements.

(e)To the extent that performance of or compliance with the guarantee by Guarantor contained in this Section 3 requires the payment of money, such guarantee is an absolute, unconditional, present and continuing guarantee of payment and not of collectability and is in no way conditional or contingent upon any attempt to collect from Purchaser or any other entity or to institute a suit against Purchaser or any other entity or to perfect or to enforce any security or upon any other condition or contingency.

(f)Guarantor’s guarantee of Guaranteed Obligations shall not be effect by, discharged or diminished as a consequence of the Seller being released from the Sale Agreement pursuant to its terms, nor by the sale of the Asset under the Sale Agreement failing to occur.

		
	4.
	Preservation of Guarantor’s Obligations and Enforcement.

(a)Guarantor’s obligations in this Guarantee are absolute, unconditional and irrevocable. The liability of Guarantor under this Guarantee extends to and is not affected by the grant of any time or indulgence to Purchaser or by any circumstance, act or omission which, but for this sub- clause, might otherwise affect it at law or in equity, and Guarantor irrevocably waives any right it may have to claim its liability has been so affected.

(b)Until the Guaranteed Obligations have been unconditionally and irrevocably satisfied in full, Guarantor may not: (a) exercise any rights as surety in competition with Seller; or (b)

claim to be entitled by way of contribution, indemnity, subrogation, marshalling or otherwise to the benefit of any agreement or document to which Seller is a party, nor prove in a liquidation of Purchaser in competition with Seller.

(c)Guarantor’s obligations in this Guarantee may be enforced against Guarantor without Seller first being required to (a) exhaust any remedy it may have against Purchaser or any other person; or (b) enforce any other guarantee or security interest it may hold relating to the Guaranteed Obligations.

		
	5.
	Release.

(a)Once all the Guaranteed Obligations have been satisfied in full and Guarantor does not have any further actual or contingent liabilities hereunder, this Guarantee shall automatically and immediately terminate and all of Guarantor’s obligations under this Guarantee shall be irrevocably and unconditionally released and discharged.

(b)Notwithstanding the provisions of Section 5(a), any release, compromise or discharge of the obligations of the Guarantor may only be made once the Guaranteed Obligations have been unconditionally performed in full, and shall be deemed to be made subject to the condition that this Guarantee will be reinstated without further action if any payment or security which Purchaser may receive or has received is rescinded as a result of insolvency or bankruptcy of Purchaser or Guarantor.

		
	6.
	Continuing Guarantee

(a)The obligations of the Guarantor contained in this Guarantee shall constitute and be continuing obligations notwithstanding any settlement of account or other matter or thing whatsoever, and shall not be considered satisfied by any intermediate performance or satisfaction of all or any of the Guaranteed Obligations and shall continue in full force and effect until total satisfaction of all Guaranteed Obligations.

(b)No delay or omission in exercising any powers or privileges hereunder shall be construed as a waiver thereof. Any exercise of any part of the rights shall not preclude subsequent enforcement of any such rights which have not, or have not fully, been exercised.

7.Notice. Any notice required or related to this Guarantee will be in writing and will, unless otherwise stated, be given and will become effective in the same manner as provided in the Sale Agreement:

in the case of Guarantor:

435 Investment Court
Verona, Wisconsin 53593 United States of America Attention: Joe Kuhn

Facsimile:    +1 808-848-8101 Email:    joe@contrail.com

in the case of Seller:

Number One Ballsbridge Building 1
Shelbourne Road Dublin 4
Ireland
Attention: The Directors Facsimile:    +353 1 485 3242
Email:    notices@avolon.aero

		
	8.
	Miscellaneous.

(a)Governing Law. THIS GUARANTEE IS DELIVERED IN NEW YORK AND PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, SHALL IN ALL RESPECTS BE GOVERNED BY NEW YORK LAW WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

(b)Jurisdiction. Clause 9 (Law and Jurisdiction) of the Sale Agreement is hereby incorporated by reference as if set forth in full length herein, mutatis mutandis.

(c)Successors and Assigns. The terms of this Guarantee shall be binding on, and inure to the benefit of, Seller and Guarantor and their respective permitted successors and assigns.

(d)Waiver of Notice and Defense. Except as otherwise provided in this Guarantee, Guarantor hereby waives, to the fullest extent permitted by law:

(i)    diligence, promptness, presentment, demand for payment or performance and protest and notice of protest, notice of acceptance and any other notice in respect of the Guaranteed Obligations or any part of them, and any defense arising by reason of any disability or other defense; and

(ii)    any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge, release or defense of a guarantor or surety, or which might otherwise limit recourse against Guarantor.

(e)Severability. Should any one or more of the provisions of this Guarantee be held to be invalid, illegal or unenforceable in any jurisdiction, the same shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity, illegality or unenforceability of a particular provision in a particular jurisdiction shall not render such provision invalid, illegal or unenforceable in any other jurisdiction.

(f)Payments. Guarantor shall make each payment to Seller under this  Guarantee without any set-off, counterclaim or any other deduction, or withholding in respect of Taxes or otherwise.

(g)Waivers, Amendments and Variations in Writing. The provisions of this Guarantee shall not be capable of being waived, amended or varied otherwise than by an express waiver or amendment in writing signed by both Guarantor and Seller; and in particular any failure to exercise or any delay in exercising any of such rights shall not operate as a waiver, amendment or variation of that or any other such right; any defective or partial exercise of any of such rights shall not preclude any other or further exercise of that or any other such right; and no act or course of conduct or negotiation on Seller’s part or on its behalf shall in any way preclude it from exercising any such right or constitute a suspension of any variation or amendment of any such right. The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies that any party may otherwise have at law or in equity.

(h)Counterparts; Delivery by Email. This Guarantee may be executed in two or more counterparts, each of which will be an original, but all of which will constitute but one and the same instrument.

This Guarantee and any document contemplated hereby may be delivered by a party hereto by way of e-mail transmission and such delivery shall be deemed completed for all purposes upon the completion of such e-mail transmission. A party that so delivers this Guarantee or any such document by way of e-mail transmission agrees to promptly thereafter deliver to the other party hereto an original signed counterpart. The signature of any party transmitted by e-mail transmission shall be considered to have the same binding legal effect as an originally executed document. In consideration of the mutual covenants herein contained, the parties agree that neither of them shall raise the use of e-mail as a defense in any suit or controversy related to this guarantee or any of such other documents and forever waive any such defense.

(i)Entire Agreement. This Guarantee constitutes the complete agreement of the parties hereto regarding the subject matter hereof and supersedes all prior understandings, communications and agreements (written or oral).
*    *    *

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Guarantee by their duly authorized officers or attorneys on the date shown at the beginning of this Guarantee.
    
GUARANTOR:

CONTRAIL AVIATION SUPPORT, LLC

By: /s/ Joseph G. Kuhn        
Name:  Joseph G. Kuhn
Title:    CEO

SELLER:

SAPPHIRE LEASING I (AOE 5) LIMITED
By:            
Name:
Title:

Signature Page Buyer Guarantee

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Guarantee by their duly authorized officers or attorneys on the date shown at the beginning of this Guarantee.

GUARANTOR:

CONTRAIL AVIATION SUPPORT, LLC

By:         
Name: 
Title:

SELLER:

SAPPHIRE LEASING I (AOE 5) LIMITED

By: /s/ William Brennan        
Name:  William Brennan
Title:  Director

Signature Page Buyer Guarantee

18172334v1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}]]