Document:

Exhibit 10.1

 

THIS PLAN SPONSOR AGREEMENT IS NOT AN OFFER
WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF VOTES WITH RESPECT TO A CHAPTER 11 PLAN OF REORGANIZATION. ANY SUCH OFFER OR SOLICITATION
WILL COMPLY WITH ALL APPLICABLE SECURITIES LAWS AND/OR PROVISIONS OF THE BANKRUPTCY CODE. ACCEPTANCES OR REJECTIONS WITH RESPECT TO A
CHAPTER 11 PLAN OF REORGANIZATION MAY NOT BE SOLICITED UNTIL A DISCLOSURE STATEMENT HAS BEEN APPROVED BY THE BANKRUPTCY COURT.

 

PLAN SPONSOR AGREEMENT

 

This PLAN SPONSOR AGREEMENT
(as amended, supplemented, or otherwise modified from time to time together with all exhibits attached hereto and incorporated herein,
this “Agreement”), dated as of August 16, 2021, is entered into by and among AeroCentury Corp. (“AeroCentury”),
JetFleet Holding Corp. (“JHC)”, and JetFleet Management Corp. (“JMC,” and collectively with AeroCentury and JHC,
the “Debtors”) and Yucheng Hu, Hao Yang, Jing Li, Yeh Ching, Yu Wang, TongTong Ma, Qiang Zhang, Yanhua Li, and Yiyi Huang
(collectively, the “Plan Sponsor”). The Debtors and the Plan Sponsor are referred to herein as the “Parties” and
individually as a Party. Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the
Plan (as defined below).

 

RECITALS

 

WHEREAS, on March 29,
2021, the Debtors commenced voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101 et
seq. (the “Bankruptcy Code”), which are being jointly administered under the caption In re AeroCentury Corp.,
et al., Case No. 21-10636 (JTD) (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of
Delaware (the “Bankruptcy Court”);

 

WHEREAS, the Debtors
filed a Combined Disclosure Statement and Joint Chapter 11 Plan of AeroCentury Corp., and its Affiliated Debtors dated July 14, 2021 (the
“Plan,” as it may be altered, amended, modified or supplemented from time to time including in accordance with any documents
submitted in support thereof and the Bankruptcy Code or the Bankruptcy Rules) [Docket No. 225];

 

WHEREAS, the Bankruptcy
Court approved the Plan on an interim basis for solicitation purposes only pursuant to the Solicitation Procedures Order [Docket No. 222];

 

WHEREAS, the Plan consists
of a toggle between (i) the Sponsored Plan, which, pursuant to the terms of the Plan Sponsor Agreement, the Debtors, and the Plan Sponsor
will agree to a restructuring of the Debtors’ businesses that will be implemented through the Sponsored Plan (collectively, the
“Restructuring Transactions”) and (ii) the Stand-Alone Plan, whereby the Debtors’ remaining Assets will vest in the
Post-Effective Date Debtors and be monetized by the Plan Administrator;

 

WHEREAS, in connection
with the Chapter 11 Cases and the Plan, AeroCentury and Plan Sponsor have engaged in good faith, arm’s length negotiations regarding
the terms of the proposed Restructuring Transactions;

 

WHEREAS, the Debtors
filed a Notice of Selection of Plan Sponsor on August 9, 2021 [Docket No. 254], which included as Exhibit A an Investment Term Sheet between
AeroCentury and Plan Sponsor dated as of August 9, 2021 (the “Term Sheet”), setting forth the principal terms of an investment
by Plan Sponsor into AeroCentury to be implemented pursuant to the Plan; and

 

WHEREAS, the Parties
desire to express to each other their mutual support and commitment in respect of the matters discussed in the Term Sheet, this Agreement,
and the Plan.

 

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AGREEMENT

 

NOW, THEREFORE, in
consideration of the covenants and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, each Party, intending to be legally bound hereby, agrees as follows:

 

1. Exhibits
Incorporated by Reference. Each of the exhibits attached hereto is expressly incorporated herein and made a part of this Agreement,
and all references to this Agreement shall include the exhibits hereto. In the event of any inconsistency between this Agreement and the
exhibits attached hereto, this Agreement (without reference to such exhibits) shall govern.

 

2. Definitive
Documents. The definitive documents governing the Restructuring Transactions shall consist of the following and any other material
document contemplated by the Parties needed or utilized to implement, govern, or consummate the Restructuring Transactions (collectively,
the “Definitive Documents”):

 

(a)  the
disclosure statement (and all exhibits and other documents and instruments related thereto) with respect to the Plan (the “Disclosure
Statement”);

 

(b) the
Securities Purchase Agreement attached as Exhibit A hereto (as may be further amended, supplemented, or otherwise modified in
accordance with its terms, the “SPA”) and all schedules, annexes, and exhibits thereto, the Common Stock Purchase Agreement
attached as Exhibit B hereto (as may be further amended, supplemented, or otherwise modified in accordance with its terms, the “CSPA”)
and all schedules, annexes, and exhibits thereto, Series A Preferred Stock Purchase Agreement attached as Exhibit C hereto (as may be
further amended, supplemented, or otherwise modified in accordance with its terms, the “SAPSPA”) and all schedules, annexes,
and exhibits thereto, and Series B Preferred Stock Purchase Agreement attached as Exhibit D hereto (as may be further amended, supplemented,
or otherwise modified in accordance with its terms, the “SBPSPA”) and all schedules, annexes, and exhibits thereto (collectively,
the “Commitment Documents”);

 

(c) the
order approving on an interim basis the Disclosure Statement, including the form of ballots and other solicitation materials in respect
of the Plan (the “Solicitation Procedures Order” and, such solicitation materials, the “Solicitation Materials”);

 

(d) the
Plan, Plan Supplement, and all documents, annexes, schedules, exhibits, amendments, modifications, or supplements thereto, or other documents
contained therein, including any schedules of assumed or rejected contracts;

 

(e) the
order confirming the Plan (the “Confirmation Order”) and any pleadings filed by the Debtors in support of the Bankruptcy Court’s
entry of the Confirmation Order;

 

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(f) the
new organizational or other governance documents of the Reorganized Debtors; and

 

(g) any
employment agreements relating to any executive officer of the Reorganized Debtors.

 

The Definitive Documents not
executed or not in a form attached to this Agreement as of the Effective Date remain subject to negotiation and, upon completion, all
Definitive Documents shall (a) reflect and contain the terms and conditions consistent with this Agreement and (b) otherwise be in form
and substance acceptable to the Debtors and the Plan Sponsor.

 

3. Milestones.
The following milestones (the “Milestones”) shall apply to this Agreement, which in each case can be extended in writing
by the Parties (with confirmation of any extension by electronic mail among counsel being sufficient for such purposes):

 

(a) by
no later than September 10, 2021, the Bankruptcy Court shall have entered the Confirmation Order; and

 

(b) by
no later than September 30, 2021, the Effective Date of the Plan shall have occurred (the “Effective Date Deadline”).

 

4. Term
Sheet. The Term Sheet is incorporated herein by reference and to the extent of any obligations of the Parties set forth therein,
such obligations shall be binding obligations of the Parties subject to the terms thereof.

 

5. Commitments
of the Parties.

 

(a) The
Debtors agree that they shall:

 

(i) (A)(1)
support and work diligently towards the completion of the Restructuring Transactions set forth in this Agreement, (2) negotiate in good
faith all Definitive Documentation that is subject to negotiation as of the effective date of this Agreement and take any and all reasonable
actions in furtherance of the Plan and this Agreement, (3) take all commercially reasonable actions necessary to complete the Restructuring
Transactions set forth in the Plan, (4) make commercially reasonable efforts to obtain any and all required regulatory and third-party
approvals necessary to consummate the Restructuring Transactions, if any, and (5) support and take such actions as are necessary or appropriate
or reasonably requested by Plan Sponsor in furtherance of the Restructuring Transactions in accordance with, and within the time frames
contemplated by, this Agreement; and (B) shall not undertake any action materially inconsistent with the adoption and implementation of
the Plan and the confirmation thereof, including, without limitation, filing any motion to reject this Agreement.

 

(ii) afford
Plan Sponsor and its respective attorneys, consultants, accountants, and other authorized representatives access, upon reasonable notice
during normal business hours, and at other reasonable times, to the properties, books, contracts, commitments, records, management personnel,
and advisors of the Debtors that are reasonably requested to consummate the Restructuring Transactions (but in no event, shall the Debtors
be required to provide access to any materials that are protected by the attorney-client, work-product or other protective privilege).
In addition, the Debtors shall promptly notify Plan Sponsor of any material developments with respect to the Debtors’ business,
the Chapter 11 Cases, or otherwise.

 

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(iii) as
to themselves and their subsidiaries, after the date of entry into this Agreement and prior to the Plan Effective Date, and except as
required by applicable law:

 

(A) Provide
the Plan Sponsor with two (2) business days’ notice prior to entering into any proposed new contracts and agreements involving individual
commitments of more than $25,000;

 

(B) Provide
the Plan Sponsor with two (2) business days’ notice prior to entering into any agreement for the sale or encumbrance of any assets
between the date of this Agreement and the Plan Effective Date in excess of $25,000 for any single transaction or $50,000 for any series
of related transactions (it being understood that the Plan Sponsor has already been provided notice of and information regarding the sales
pending in and/or executed during the Chapter 11 Cases);

 

(C) Use
commercially reasonable efforts to maintain all of the assets and properties in their current condition, ordinary wear and tear excepted;

 

(D) Maintain
insurance upon all of the assets and properties of the Debtors in such amounts and of such kinds comparable to that in effect on the date
of this Agreement;

 

(E) (1)
Use commercially reasonable efforts to maintain the books, accounts and records of the Debtors in the ordinary course of business, (2)
continue to collect accounts receivable and pay accounts payable utilizing reasonable procedures and without discounting or accelerating
payment of such accounts, and (3) use commercially reasonable efforts to comply with all contractual and other obligations applicable
to the operation of the Debtors;

 

(F) Comply
in all material respects with applicable laws;

 

(G) The
Debtors shall only submit tax returns and otherwise conduct their affairs with respect to tax matters in consultation with the Plan Sponsor;
and the Debtors shall not (without Plan Sponsor’s prior written consent) make or rescind any election relating to taxes, settle
or compromise any claim, action, suit, litigation, proceeding, arbitration, investigation, audit, or controversy relating to taxes, or,
except as may be required by applicable law or GAAP, make any material change to any of the Debtors’ methods of accounting or methods
of reporting income or deductions for tax or accounting practice or policy from those employed in the preparation of its most recent tax
returns;

 

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(H) The
Debtors shall not, without the prior written consent of Plan Sponsor, (1) materially increase the annual level of compensation of any
employee of the Debtors, (2) increase the annual level of compensation payable or to become payable by the Debtors to any of the Debtors’
executive officers, (3) grant any unusual or extraordinary bonus, benefit, or other direct or indirect compensation to any employee, director,
or consultant, (4) materially increase the coverage or benefits available under any (or create any new) severance pay, termination pay,
vacation pay, company awards, salary continuation for disability, sick leave, deferred compensation, bonus, or other incentive compensation,
insurance, pension, or other employee benefit plan or arrangement made to, for, or with any of the directors, officers, employees, agents,
or representatives of the Debtors or otherwise modify or amend or terminate any such plan or arrangement or (v) enter into any employment,
deferred compensation, severance, consulting, non-competition, or similar agreement (or amend any such agreement) to which the Debtors
are a party or involving a director, officer, or employee of the Debtors in his or her capacity as a director, officer or employee of
the Debtors, provided, however, for the sake of clarity nothing in this Agreement shall restrict the Debtors’ ability to honor its
existing employment practices and policies, including, but not limited to, payment of ordinary course salary and benefits, and, upon termination
of employment, severance and other end-of-employment benefits, all of which have been disclosed to the Plan Sponsor; and

 

(I) The
Debtors shall not cancel or compromise any debt or claim or waive or release any material right of the Debtors except in the ordinary
course of business. For the avoidance of doubt, the foregoing shall not limit the Debtors’ ability to resolve, fix, settle, compromise,
object to, or allow any claim in the Chapter 11 Cases with the approval of the Bankruptcy Court or in accordance with the Plan.

 

(b) The
Plan Sponsor agrees that they shall:

 

(i)  (A)(1)
support and work diligently towards the completion of the Restructuring Transactions set forth in this Agreement, (2) negotiate in good
faith all Definitive Documentation that is subject to negotiation as of the effective date of this Agreement and take any and all reasonable
actions in furtherance of the Plan and this Agreement, (3) take all commercially reasonable actions necessary to complete the Restructuring
Transactions set forth in the Plan, (4) make commercially reasonable efforts to obtain any and all required regulatory and third-party
approvals necessary to consummate the Restructuring Transactions, if any, and (5) support and take such actions as are necessary or appropriate
or reasonably requested by the Debtors in furtherance of the Restructuring Transactions in accordance with, and within the time frames
contemplated by, this Agreement; and (B) shall not undertake any action materially inconsistent with the adoption and implementation of
the Plan and the confirmation thereof, including, without limitation, filing any motion to reject this Agreement.

 

(ii)  provide
the Debtors with information satisfactory to the Debtors, in their reasonable discretion, that the Plan Sponsor shall have adequate financial
means to consummate the Restructuring Transactions, including, but not limited to, providing proof of funds to consummate the Restructuring
Transactions.

 

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6. Mutual
Representations and Warranties. Each Party, severally and not jointly, represents and warrants to the other Parties that the following
statements are true and correct as of the Effective Date, subject in the case of the Debtors to any required approval by the Bankruptcy
Court:

 

(a) Existence;
Power and Authority; and Authorization. If such Party is an entity, (i) such Party is validly existing and in good standing under
the laws of its jurisdiction of incorporation and has all requisite corporate power and authority to enter into this Agreement and perform
such Party’s obligations under this Agreement and (ii) the execution and delivery of this Agreement and the performance of such
Party’s obligations under this Agreement have been duly authorized by all necessary corporate action on such Party’s part;

 

(b) No
Conflict. The execution, delivery, and performance by such Party of this Agreement does not and will not (i) violate any provision
of law, rule, or regulation applicable to it or, if such Party is an entity, any of its subsidiaries or its charter or bylaws (or other
similar governing documents) or those of any of its subsidiaries or (ii) conflict with, result in a breach of or constitute (with due
notice or lapse of time or both) a default under any material contractual obligation to which it or, if such Party is an entity, any of
its subsidiaries is a party;

 

(c) No
Consent or Approval. The execution, delivery, and performance by such Party of this Agreement does not and will not require any registration
or filing with, consent or approval of, or notice to, or other action, with or by, any federal, state, or other governmental authority
or regulatory body, except such filings (i) as may be necessary or required by the U.S. Securities and Exchange Commission or (ii) with
respect to the Plan Sponsor, that are set forth in SPA; and

 

(d) Enforceability.
This Agreement is the legally valid and binding obligation of such Party, enforceable against it in accordance with its terms, except
as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws relating to or limiting creditors’
rights generally or by equitable principles relating to enforceability or a ruling of the Bankruptcy Court.

 

7. Termination
Events. 

 

(a) This
Agreement shall automatically terminate three (3) business days after delivery of written notice to the other Party (in accordance with
Section 21) from (i) the Debtors at any time after the occurrence and during the continuance of any Debtors Termination Event or (ii)
Plan Sponsor at any time after the occurrence and during the continuance of any Plan Sponsor Termination Event. In addition, this Agreement
shall terminate automatically on the Plan Effective Date without any further required action or notice.

 

(i) “Plan
Sponsor Termination Event” shall mean any of the following:

 

(A) the
breach in any material respect by the Debtors of any of the undertakings, representations, warranties, or covenants of the Debtors set
forth herein that would prevent and result in a material adverse effect on the consummation of the Plan in accordance with this Agreement
that remains uncured for a period of five (5) business days after the receipt of written notice of such breach to the Debtors;

 

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(B) the
Debtors file Definitive Documentation in a form not reasonably acceptable to Plan Sponsor, or make any amendments, modifications, exhibits,
or supplements thereto, in a manner that adversely affects Plan Sponsor without the consent of Plan Sponsor or except as otherwise permitted
by this Agreement;

 

(C) the
Debtors withdraw the Plan or publicly announce the Debtors’ intention to not support the Plan, or propound, or otherwise support
any chapter 11 plan other than the Plan;

 

(D) the
Confirmation Order is not entered in form and substance reasonably satisfactory to Plan Sponsor, it being understood and agreed that Plan
Sponsor will act reasonably and commercially in considering any modifications to the Confirmation Order requested or required by the Bankruptcy
Court and other parties in interest;

 

(E) the
Debtors seek, pursue, support, or do not oppose an order to be entered by the Bankruptcy Court or a court of competent jurisdiction either
converting the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code or dismissing the Chapter 11 Cases;

 

(F) the
Debtors seek, pursue, support, or do not oppose an order of the Bankruptcy Court seeking appointment, in respect of the Debtors, a trustee,
a responsible officer, or an examiner with enlarged powers (i.e., powers beyond those set forth in subclauses (3) and (4) of section
1106(a)) under section 1106(b) of the Bankruptcy Code);

 

(G) this
Agreement is waived, modified, amended, or supplemented in any way, except by mutual agreement of, and in a writing signed by, the Debtors
and the Plan Sponsor; or

 

(H) the
Bankruptcy Court grants relief that is inconsistent with this Agreement or the Plan in any material respect, except if such relief is
granted pursuant to a motion by the Plan Sponsor (or with the consent of the Plan Sponsor); provided, however, that the failure to obtain
confirmation of the Plan and/or the occurrence of the Effective Date shall not constitute a Plan Sponsor Termination Event pursuant to
this Section 7(a)(viii) unless such failure is the result of any Plan Sponsor Termination Event identified in Section 7(a)(i)-(vii).

 

(ii) “Debtors
Termination Event” shall mean any of the following:

 

(A) the
breach in any material respect by Plan Sponsor of any of the undertakings, representations, warranties, or covenants of Plan Sponsor set
forth herein that would result in a material adverse effect on the consummation of a Plan in accordance with this Agreement that remains
uncured for a period of five (5) business days after the receipt of written notice of such breach;

 

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(B) the
Plan Sponsor shall have failed to provide the Debtors with information required by Section 5(b)(ii);

 

(C) the
Plan Sponsor makes any amendments, modifications, exhibits, or supplements to the Definitive Documentation, in a manner that adversely
affects the Debtors without the consent of the Debtors or except as otherwise permitted by this Agreement;

 

(D) the
Plan Sponsor advises the Debtors or publicly announces its intention to not support the Plan;

 

(E) this
Agreement is waived, modified, amended, or supplemented in any way, except by mutual agreement of, and in a writing signed by, the Debtors
and the Plan Sponsor;

 

(F) the
Bankruptcy Court denies confirmation of the Plan; or

 

(G) any
governmental authority or regulatory body having authority blocks the purchase of the New ACY Shares or does not otherwise grant any approval
required in connection with the purchase of the New ACY Shares.

 

(b) Mutual
Termination. This Agreement may be terminated by mutual agreement of the Parties.

 

(c) Effect
of Termination. Subject to the last sentence of this Section 7(c) and Section 9, upon the termination of this Agreement in accordance
with this Section, this Agreement shall become void and of no further force or effect and each Party shall be immediately released from
its respective liabilities, obligations, commitments, undertakings, and agreements under or related to this Agreement, shall have no further
rights, benefits, or privileges hereunder, and shall have all the rights and remedies that it would have had and shall be entitled to
take all actions, whether with respect to the Restructuring Transactions or otherwise, that it would have been entitled to take had it
not entered into this Agreement and no such rights or remedies shall be deemed waived pursuant to a claim of laches or estoppel; provided
that in no event shall any such termination relieve a Party from liability for its breach or non-performance of its obligations hereunder
before the date of such termination. Except as set forth herein, if the transactions contemplated hereby are not consummated, or if this
Agreement is terminated for any reason, the Parties fully reserve any and all of their rights. In the event this Agreement as a result
of any Debtors Termination Event specified in Section 7(a)(ii)(A), (B), (C), or (D), the Deposit shall be retained by the Debtors as liquidated
damages and irrevocably forfeited by the Plan Sponsor. In the event of a termination pursuant to any other subpart of Section 7, the Deposit
shall be returned to the Plan Sponsor.

 

(d) Automatic
Stay. The Debtors acknowledge that the giving of notice of termination by any Party pursuant to this Agreement shall not be a violation
of the automatic stay of section 362 of the Bankruptcy Code; provided that nothing herein shall prejudice any Party’s rights to
argue that the giving of notice of termination was not proper under the terms of this Agreement.

 

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8. Amendments
and Waivers. Except as otherwise expressly set forth herein, this Agreement may not be waived, modified, amended, or supplemented
except in a writing signed by each Party.

 

9. Break-Up
Fee. If after the Effective Date the Bankruptcy Court approves an exit financing transaction for AeroCentury with a party other
than the Plan Sponsor (an “Alternative Transaction”) then AeroCentury shall pay Plan Sponsor, upon the closing of such Alternative
Transaction, in addition to the return of the Deposit, a breakup fee equal to USD$1,000,000.

 

10. Effectiveness.
Subject to approval by the Bankruptcy Court, this Agreement shall become effective and binding upon each Party upon the execution
and delivery by such Party of an executed signature page hereto.

 

11. Governing
Law; Jurisdiction; Wavier of Jury Trial.

 

(a) This
Agreement shall be construed and enforced in accordance with, and the rights of the Parties shall be governed by, the laws of the State
of Delaware, without giving effect to the conflict of laws principles thereof. The Parties irrevocably agree that any legal action, suit,
or proceeding (each, a “Proceeding”) arising out of or relating to this Agreement brought by any Party or its successors or
assigns shall be brought and determined in the Bankruptcy Court or, if the Bankruptcy Court shall not then have jurisdiction, in any federal
or state court in New Castle County, Delaware (the “Delaware Courts”), and the Parties hereby irrevocably and generally submit
to the exclusive jurisdiction of the Delaware Courts and any court to which appeals from the Delaware Courts may be adjudicated for themselves
and with respect to their property, and unconditionally with respect to any Proceeding arising out of or relating to this Agreement and
the Restructuring. The Parties agree not to commence any Proceeding relating hereto or thereto except in the Delaware Courts, other than
Proceedings in any court of competent jurisdiction to enforce any judgment, decree, or award rendered by any Delaware Court. The Parties
further agree that notice as provided herein shall constitute sufficient service of process and the Parties further waive any argument
that such service is insufficient. The Parties hereby irrevocably and unconditionally waive and agree not to assert that a Proceeding
in any Delaware Court is brought in an inconvenient forum or the venue of such Proceeding is improper. Notwithstanding the foregoing,
during the pendency of the Chapter 11 Case, all Proceedings contemplated by this Section 11 shall exclusively be brought in the Bankruptcy
Court and no other forum.

 

(b) The
Parties hereby waive, to the fullest extent permitted by applicable law, any right they may have to a trial by jury in any Proceeding
directly or indirectly arising out of or relating to this Agreement or the transactions contemplated hereby (whether based on contract,
tort or any other theory).

 

12. Good
Faith Cooperation; Further Assurances. Each Party hereby covenants and agrees to cooperate with each other in good faith in connection
with, and shall exercise commercially reasonable efforts with respect to, the pursuit, approval, implementation, and consummation of the
Restructuring Transactions, as well as the negotiation, drafting, execution, and delivery of the Definitive Documentation. Subject to
the terms hereof, the Parties shall take such action as may be reasonably necessary or reasonably requested by any Party to carry out
the purposes and intent of this Agreement, and shall refrain from taking any action that would frustrate the purposes and intent of this
Agreement.

 

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13. Independent
Analysis. Each Party hereby confirms that its decision to execute this Agreement has been based upon its independent assessment
of documents and information available to it, as it has deemed appropriate.

 

14. Debtors’
Fiduciary Obligations. Notwithstanding anything to the contrary in this Agreement, nothing in this Agreement, the Plan, or anything
included in any Definitive Document shall require any Debtor or any board of directors, board of managers, or similar governing body of
any Debtor, after consulting with counsel, to take any action or to refrain from taking any action with respect to this Agreement, the
Plan, or the Restructuring Transactions to the extent taking or failing to take such action would be inconsistent with applicable law
or its fiduciary obligations under applicable law, and any such action or inaction pursuant to such exercise of fiduciary duties shall
not be deemed to constitute a breach of this Agreement; provided that the Debtors shall give prompt written notice to
counsel to the Plan Sponsor (electronic mail among counsel being sufficient) of any determination made under this Section.

 

15. Survival.
Notwithstanding the termination of this Agreement pursuant to Section 7, [Section[s] *] shall survive such termination and shall continue
in full force and effect in accordance with the terms hereof; provided that any liability of a Party for failure to comply with the terms
of this Agreement shall survive such termination.

 

16. Headings.
The headings of the sections, paragraphs, and subsections of this Agreement are inserted for convenience only and shall not affect
the interpretation hereof or, for any purpose, be deemed a part of this Agreement.

 

17. Successors
and Assigns; Severability. This Agreement is intended to bind and inure to the benefit of the Parties and their respective successors,
permitted assigns, heirs, executors, administrators, and representatives. If any provision of this Agreement, or the application of any
such provision to any person or entity or circumstance, shall be held invalid or unenforceable, in whole or in part, such invalidity or
unenforceability shall attach only to such provision or part thereof and the remaining part of such provision hereof and this Agreement
shall continue in full force and effect. Upon any such determination of invalidity, the Parties shall negotiate in good faith to modify
this Agreement so as to effectuate the original intent of the Parties as closely as possible in a reasonably acceptable manner so that
the transactions contemplated hereby are consummated as originally contemplated to the greatest extent possible. No assignment of this
Agreement or of any rights or obligations hereunder may be made by any Party (by operation of law or otherwise) without the prior written
consent of the other parties hereto and any attempted assignment without the required consents shall be void.

 

18. Relationship
Among Parties. Unless expressly stated herein, this Agreement shall be solely for the benefit of the Parties and no other person
or entity shall be a third-party beneficiary hereof. No Party shall have any responsibility for the transfer, sale, purchase, or other
disposition of securities by any other entity by virtue of this Agreement. No prior history, pattern, or practice of sharing confidences
among the Parties shall in any way affect or negate this understanding and agreement. The Parties have no agreement, arrangement, or understanding
with respect to acting together for the purpose of acquiring, holding, voting, or disposing of any securities of the Company and do not
constitute a “group” within the meaning of Rule 13d-5 under the Securities Exchange Act of 1934, as amended.

 

19. Prior
Negotiations; Entire Agreement. This Agreement, including the exhibits and schedules hereto (including the Term Sheet), constitutes
the entire agreement of the Parties, and supersedes all other prior negotiations regarding the subject matters hereof and thereof.

 

20. Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together
shall be deemed to be one and the same agreement. Execution copies of this Agreement delivered by facsimile or PDF shall be deemed to
be an original for the purposes of this paragraph.

 

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21. Notices.
All notices hereunder shall be deemed given if in writing and delivered, if contemporaneously sent by electronic mail, facsimile,
courier, or by registered or certified mail (return receipt requested) to the following addresses and facsimile numbers or such other
addresses of which notice is given pursuant hereto:

 

(a)  if
to the Plan Sponsor to be delivered in care of the Investor Representative (as defined in the SPA) to:

 

Yucheng Hu

Floor 7 Suite AB, Yuanyang Guangha

International Chaoyang District

Beijing, China

		Email:	huyucheng@me.com

 

or at such other address as the Investor
Representative shall have furnished to the Debtors with a copy to (which copy shall not constitute notice):

 

Lewis Brisbois Bisgaard & Smith
LLP

2020 West El Camino Avenue, Suite 700

Sacramento, CA 95833

		Attn:	John P. Yung

Facsimile: 916.564.5444

		Email:	John.yung@lewisbrisbois.com

 

(c)  if
to the Debtors, to:

 

AeroCentury Corp., et al.

1440 Chapin Avenue, Suite 310

Burlingame, California 92618

		Attention: 	Harold M. Lyons

		Email:	hal.lyons@aerocentury.com

 

or at such other address as the Debtors
shall have furnished to the Investor Representative (as defined in the SPA) with a copy to (which copy shall not constitute notice):

 

Young Conaway Stargatt & Taylor,
LLP

Rodney Square

1000 N. King Street

Wilmington, DE 19801

Attention: Joseph Barry, Craig D. Grear,
and Joseph Mulvihill

		Facsimile:	  (302)576-3296

		Email:	jbarry@ycst.com

cgrear@ycst.com

jmulvihill@ycst.com

 

22. No
Solicitation; Adequate Information. This Agreement is not and shall not be deemed to be a solicitation for consents to the Plan.
The votes of the holders of claims against the Company will not be solicited until such holders who are entitled to vote on the Plan have
received the Plan, Disclosure Statement, related ballots, and other required Solicitation Materials. In addition, this Agreement does
not constitute an offer to issue or sell securities to any person or entity, or the solicitation of an offer to acquire or buy securities,
in any jurisdiction where such offer or solicitation would be unlawful.

 

23. Business
Day Convention. Any reference to “business day” means any day, other than a Saturday, Sunday or a legal holiday (as
that term is defined in Bankruptcy Rule 9006(a)).

 

24. Interpretation;
Rules of Construction; Representation by Counsel. When a reference is made in this Agreement to a Section, Exhibit, or Schedule,
such reference shall be to a Section, Exhibit, or Schedule, respectively, of or attached to this Agreement unless otherwise indicated.
Unless the context of this Agreement otherwise requires, (a) words using the singular or plural number also include the plural or singular
number, respectively, (b) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer
to this entire Agreement, (c) the words “include,” “includes” and “including” when used herein shall
be deemed in each case to be followed by the words “without limitation,” and (d) the word “or” shall not be exclusive
and shall be read to mean “and/or.” The Parties agree that they have been represented by legal counsel during the negotiation
and execution of this Agreement and, therefore, waive the application of any law, regulation, holding, or rule of construction providing
that ambiguities in an agreement or other document shall be construed against the party drafting such agreement or document.

 

[Remainder of Page Intentionally Left Blank]

 

    11

     

    

 

IN WITNESS WHEREOF,
the Parties have caused this Agreement to be executed and delivered by their respective duly authorized officers, solely in their respective
capacity as officers of the undersigned and not in any other capacity, as of the date first set forth above.

 

	 	DEBTORS
	 	 	 
	 	AeroCentury Corp. 
	 	 	 
	 	By:	/s/ Harold M. Lyons
	 	Name:	Harold M. Lyons
	 	Title:	Senior Vice President - Finance
	 	 	 
	 	JetFleet Holding Corp. 
	 	 	 
	 	By:	/s/ Harold M. Lyons
	 	Name:	Harold M. Lyons
	 	Title:	Senior Vice President - Finance
	 	 	 
	 	JetFleet Management Corp. 
	 	 	 
	 	By:	/s/ Harold M. Lyons
	 	Name:	Harold M. Lyons
	 	Title:	Senior Vice President - Finance

 

[SIGNATURE PAGE TO PLAN SPONSOR AGREEMENT]

 

     

     

    

 

	 	PLAN SPONSORS
	 	 
	 	By:	/s/ Yucheng Hu
	 	 	Yucheng Hu
	 	 	 
	 	By:	/s/ Hao Yang
	 	 	Hao Yang
	 	 	 
	 	By:	/s/ Jing Li
	 	 	Jing Li
	 	 	 
	 	By:	/s/ Yeh Ching
	 	 	Yeh Ching
	 	 	 
	 	By:	/s/ Yu Wang
	 	 	Yu Wang
	 	 	 
	 	By:	/s/ TongTong Ma
	 	 	TongTong Ma
	 	 	 
	 	By:	/s/ Qiang Zhang
	 	 	Qiang Zhang
	 	 	 
	 	By:	/s/ Yanhua Li
	 	 	Yanhua Li
	 	 	 
	 	By:	/s/ Yiyi Huang
	 	 	Yiyi Huang

 

[SIGNATURE PAGE TO PLAN SPONSOR AGREEMENT]Exhibit 10.2

 

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR REGISTERED OR QUALIFIED UNDER THE SECURITIES
LAWS OF ANY STATE OR FOREIGN JURISDICTION OR APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION (THE “SEC”)
OR ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY OF ANY JURISDICTION, NOR HAS THE SEC OR ANY SUCH STATE SECURITIES COMMISSION
OR REGULATORY AUTHORITY PASSED UPON THE MERITS OF THIS OFFERING, NOR IS IT INTENDED THAT THEY WILL. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.

 

THE SECURITIES OFFERED HEREBY CANNOT BE OFFERED
OR SOLD IN THE UNITED STATES OR TO “U.S. PERSONS” (AS SUCH TERM IS DEFINED IN REGULATION S, PROMULGATED UNDER THE SECURITIES
ACT) UNLESS THE SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT IS AVAILABLE.

 

SECURITIES PURCHASE
AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT (this “Agreement”) dated September 30, 2021 (the “Effective
Date”), by and between Aerocentury Corp., a Delaware corporation (the “Company”), the persons
listed on the signature page(s) of this Agreement (the “Investors”), and Yucheng Hu, in the capacity as the
representative for the Investors in accordance with the terms and conditions of this Agreement (the “Investor Representative”).

 

RECITALS:

 

WHEREAS, on March 29,
2021, AeroCentury Corp., JetFleet Holding Corp., and JetFleet Management Corp. (collectively, the “Debtors”)
commenced voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101 et seq. (the
“Bankruptcy Code”), which are being jointly administered under the caption In re Aerocentury Corp.,
et al., Case No. 21-10636 (JTD) (the “Chapter 11 Cases”) in the United States Bankruptcy Court for
the District of Delaware (the “Bankruptcy Court”);

 

WHEREAS, the Debtors
filed a Combined Disclosure Statement and Joint Chapter 11 Plan of AeroCentury Corp., and its Affiliated Debtors dated July 14, 2021 (the
“Plan,” as it may be altered, amended, modified, or supplemented from time to time including in accordance with
any documents submitted in support thereof and the Bankruptcy Code or the Bankruptcy Rules) [Docket No. 225];

 

WHEREAS, the Bankruptcy
Court approved the Plan on an interim basis for solicitation purposes only pursuant to the Solicitation Procedures Order [Docket No. 222];

 

WHEREAS, the Plan consists
of a toggle between (i) the Sponsored Plan, which, pursuant to the terms of the Plan Sponsor Agreement, the Debtors and the Plan Sponsor
will agree to a restructuring of the Debtors’ businesses that will be implemented through the Sponsored Plan (collectively, the
“Restructuring Transactions”) and (ii) the Stand-Alone Plan, whereby the Debtors’ remaining Assets will
vest in the Post-Effective Date Debtors and be monetized by the Plan Administrator;

 

WHEREAS, the Debtors
filed a Notice of Selection of Plan Sponsor on August 9, 2021 [Docket No. 254], which included as Exhibit A an Investment Term Sheet between
AeroCentury and Plan Sponsor dated as of August 9, 2021 (the “Term Sheet”) setting forth the principal terms
of an investment by Plan Sponsor into AeroCentury to be implemented pursuant to the Plan;

 

    1

     

    

 

WHEREAS, the Company
and each Investor are executing and delivering this Agreement in reliance upon the exemption from registration afforded by one or more
of Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), Rule 506 of Regulation
D (“Regulation D”), and Regulation S (“Regulation S”) as promulgated by the United
States Securities and Exchange Commission (the “SEC”) under the Securities Act;

 

WHEREAS, each Investor,
severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement,
that aggregate number of shares of the common stock, par value $0.001 per share, of the Company (the “Common Stock”),
set forth opposite each Investor’s name on Exhibit A hereto (which aggregate amount for all Investors together shall collectively
be referred to herein as the “Securities”); and

 

WHEREAS, each Investor
shall pay $3.85 hereunder for each of the Securities, with an aggregate amount to be paid for all Securities of approximately $11,053,068.95
(the “Purchase Price”).

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

SECTION 1. SALE OF COMMON STOCK

 

1.1
 Authorization. The Company has authorized the sale and issuance of Securities to the
Investors in the amounts set forth opposite each Investor’s name on Exhibit A hereto of an aggregate of 2,870,927 Securities,
which represents approximately 65% of the outstanding shares of Common Stock immediately following the Closing.

 

1.2
 Sale and Issuance of the Securities. Subject to the terms and conditions set forth in
this Agreement, the Company will issue and sell to the Investors and the Investors will buy from the Company the Securities at a per share
purchase price of $3.85.

 

1.3
 Escrow. On August 16, 2021, the Investors deposited the aggregate sum of $1,650,000 (the
“Escrow Deposit”) with Young Conaway Stargatt & Taylor, LLP (“Escrow Agent”) to
be held and distributed in accordance with the terms of this Agreement, unexecuted the Plan Sponsor Agreement filed with the United States
Bankruptcy Court for the District of Delaware on August 16, 2021, bay and among the Debtors and the Investors, and the Escrow Agreement
attached hereto as Exhibit B (the “Escrow Agreement”).

 

SECTION 2. CLOSING DATE; DELIVERY.

 

2.1
 Closing Date. Subject to the satisfaction or waiver of the conditions set forth in Sections
5, 6 and 7, the Closing, of the purchase and sale of the Securities shall take place at the offices of Young Conaway Stargatt &
Taylor, LLP, 1000 N. King Street, Wilmington, DE 19801, at 4:00 p.m. local time, on September 30, 2021, or at such other location, date,
and time as may be agreed upon between the Investors and the Company (such closing being called the “Closing”
and such date and time being called the “Closing Date”) but in any event not later than September 30, 2021 so
long as all of the conditions of Sections 5, 6 and 7 have been satisfied (or otherwise waived in accordance with this Agreement).

 

2.2
 Delivery and Payment. At the Closing, the Company will deliver, or cause its transfer
agent and registrar to deliver, to the Investors, through book-entry delivery with appropriate restrictive legends, registered in each
Investor’s name, representing the number of Securities to be purchased by each Investor at the Closing, against payment by the Purchase
Price by the Escrow Agent and the Investors, by (i) a certified or official bank check payable to the Company, (ii) by wire transfer per
the Company’s instructions, or (iii) by any combination of (i) and (ii) above. The Company shall not be obligated to issue and sell
any Securities unless and until it receives the entirety of the Purchase Price.

 

    2

     

    

 

SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

Except as set forth in the
disclosure schedules delivered by the Company to the Investors on the date hereof (the “Company Disclosure Schedules”),
the Section numbers of which are numbered to correspond to the Section numbers of this Agreement to which they refer, the Company represents
and warrants to the Investors, as of the date hereof and as of the Closing as follows:

 

3.1
 Organization and Standing; Certificate Of Incorporation and Bylaws. The Company is a
corporation duly organized and validly existing in good standing under the laws of the State of Delaware. The Company has requisite corporate
power and authority to own its assets and to carry on its business as now conducted and proposed to be conducted and is duly qualified
as a foreign corporation in each jurisdiction in which such qualification is necessary. Copies of the Certificate of Incorporation and
Bylaws of the Company have been provided to Investors. Said copies remain true, correct and complete and reflect all amendments as of
the Closing.

 

3.2
 Corporate Power. Subject to entry of an order of the Bankruptcy Court approving the Plan
and the Company’s entry into this Agreement, the Company has all requisite legal and corporate power and authority to execute and
deliver this Agreement, and to carry out and perform its obligations under the terms of this Agreement.

 

3.3
 Subsidiaries. The Company owns or controls, directly or indirectly, all of the capital
stock or comparable equity interests of each subsidiary free and clear of any liens or encumbrances, and all issued and outstanding shares
of capital stock or comparable equity interest of each subsidiary are validly issued and are fully paid, non-assessable and free of preemptive
and similar rights; and the Company owns or controls, directly or indirectly, only the following corporations and limited liability companies:

 

		-	ACY E-175 LLC, a Delaware limited liability company

		-	ACY SN 15129 LLC, a Delaware limited liability company

		-	ACY SN 19002 Limited, an English limited liability company

		-	ACY SN 19003 Limited, an English limited liability company

		-	JetFleet Holding Corp., a California corporation

		-	JetFleet Management Corp., a California corporation

		-	1314401 Alberta Inc., d/b/a JetFleet Canada, an Alberta, Canada corporation

 

3.4
 Capitalization. The authorized capital stock of the Company consists of 10,000,000 shares
of Common Stock, $0.001 par value (“Common Stock”), of which 1,545,884 shares are and will be issued and outstanding
immediately prior to the Closing, and 2,000,000 shares of Preferred Stock, $0.001 par value (“Preferred Stock”),
of which none are or will be issued and outstanding immediately prior to the Closing. There are no outstanding options, warrants, rights
(including conversion or preemptive rights and rights of first refusal or similar rights), or agreements, orally or in writing, to purchase
or acquire from the Company any shares of Common Stock, or any securities convertible into or exchangeable for shares of Common Stock.
No person, other than the Investors pursuant to this Agreement, has any right to purchase any portion of the Securities covered by this
Agreement. All issued and outstanding shares of Common Stock of the Company have been duly authorized and validly issued, are fully paid
and nonassessable, and have been offered, issued, sold and delivered by the Company in compliance with applicable federal and state securities
laws. The Company holds no Common Stock in its treasury.

 

    3

     

    

 

3.5
 Authorization. All corporate action on the part of the Company and its board of directors
and all action on the part of the officers of the Company necessary for the authorization, execution, delivery and performance of this
Agreement by the Company, the authorization, sale, issuance and delivery of the Securities and the performance of the Company’s
obligations under this Agreement has been taken or will be taken prior to the Closing. No action of the Company’s stockholders is
necessary for any of the foregoing actions. This Agreement constitutes the valid and binding obligation of the Company, enforceable in
accordance with its terms.

 

3.6
 Private Offering; Valid Issuance.

 

(a)
 The Securities, when issued in compliance with the provisions of this Agreement, will be validly
issued, fully paid and nonassessable and will be free of any liens or encumbrances other than restrictions under pertinent federal and
state securities laws, rules and regulations.

 

(b)
 The Company has taken all necessary action on its part to ensure that, subject to the accuracy
of the Investors’ representations in Section 4 hereof, the offer, sale and issuance of the Securities will constitute transactions
exempt from the registration requirements of Section 5 of the Securities Act of 1933, as amended (the “Securities Act”),
and the Securities will be issued in compliance with all applicable federal and state securities laws.

 

(c)
 No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) (a “Disqualification
Event”) promulgated under the Securities Act, is applicable to the Company or, to the Company’s knowledge, any person
listed in the first paragraph of Rule 506(d)(1), except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3),
is applicable.

 

3.7
 No Registration, Voting or Liquidation Rights. The Company is not under any contractual
obligation to register under the Securities Act any of its outstanding securities or any of its securities which may hereafter be issued.
To the Company’s knowledge, no stockholder of the Company is party to any agreement with any party other than one or more Investors
relating to the voting of capital shares of the Company. The Company is not under any contractual obligation to wind-up, liquidate or
dissolve whether or not conditioned upon the occurrence of certain events, lapse of certain periods, or upon notice or election by one
or more persons (other than by its stockholders in accordance with the requirements of applicable law) and any such past obligations.

 

3.8
 Governmental Consent, Etc. No consent, approval, order or authorization of, or registration,
qualification, designation, declaration, or filing with any governmental authority on the part of the Company (except the filing of a
Schedule 14f-1 with the U.S. Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of
1934 (the “Exchange Act”) and the rules and regulations of the SEC promulgated thereunder) is required in connection
with the valid execution and delivery of this Agreement or the offer, sale, or issuance of the Securities or other transactions contemplated
hereby, except as set forth on Schedule 3.8 and the filings pursuant to Regulation D of the Securities Act, applicable state securities
laws, NYSE Amex Additional Listing Application, which filings, if required, will be accomplished by the Company, at its expense, in a
timely manner.

 

3.9
 Actions. Except for the Cash Dividend (as defined below), (i) the Company has not declared
or paid any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock or (ii)
sold, exchanged or otherwise disposed of any of its assets or rights.

 

    4

     

    

 

3.10
 Certain Transactions. Except as disclosed in the Company’s filings with the SEC,
and other than pursuant to this Agreement, no officer, director or employee of the Company, or any member of the immediate family of any
such officer, director or employee, or any entity in which any of such persons owns any beneficial interest (other than any publicly-held
corporation whose stock is traded on a national securities exchange or in the over-the-counter market and less than one percent of the
stock of which is beneficially owned by any of such persons) (collectively, the “Company Insiders”), has any
agreement with the Company (other than customary at-will employment arrangements) or any interest in any property, real, personal or mixed,
tangible or intangible, used in or pertaining to the business of the Company (other than ownership of capital stock of the Company). The
Company is not indebted to any Company Insider (except for amounts due as normal salaries and bonuses and in reimbursement of ordinary
business expenses) and no Company Insider is indebted to the Company except for cash advances for ordinary business expenses). To the
Company’s knowledge, information, and belief, none of the Company Insiders has any direct or indirect interest in any person from
whom or to whom the Company leases any property, or in any other person with whom the Company transacts business of any nature. For purposes
of this Section 3.10, the members of the immediate family of an officer, director or employee shall consist of the spouse, parents,
children and siblings of such officer, director or employee.

 

3.11
 [Reserved].

 

3.12
 Compliance With Other Instruments. The Company is not in violation of (i) any provisions
of its Certificate of Incorporation or Bylaws, (ii) any instrument, judgment, order, writ, or decree, or (iii) any material provision
of federal or state statute, rule, or regulation applicable to the Company. The execution, delivery, and performance of this Agreement,
and the consummation of the transactions contemplated hereby, including the issuance of the Securities, have not resulted and will not
result in any violation of, or conflict with, or constitute a default under any such term or provision, or result in the creation of,
any mortgage, pledge, lien, encumbrance or charge upon any of the assets of the Company; and there is no such violation or default or
event that, with the passage of time or giving of notice or both, would constitute a violation or default that would adversely affect
the business of the Company or any of its assets.

 

3.13
 SEC Reports. The Company has filed all forms, reports, schedules, statements, registration
statements, prospectuses and other documents required to be filed or furnished by the Company with the SEC under the Securities Act and
the Exchange Act, as applicable, together with any amendments, restatements or supplements thereto, and will file all such forms, reports,
schedules, statements and other documents required to be filed subsequent to the date of this Agreement. Except to the extent available
on the SEC’s web site through EDGAR, the Company has made available to the Investors copies in the form filed with the SEC of all
of the following: (i) the Company’s Annual Reports on Form 10-K for each fiscal year of the Company beginning with the first year
the Investor was required to file such a form, (ii) the Company’s Quarterly Reports on Form 10-Q for each fiscal quarter that the
Investor filed such reports to disclose its quarterly financial results in each of the fiscal years of the Company referred to in clause
(i) above, (iii) all other forms, reports, registration statements, prospectuses and other documents (other than preliminary materials)
filed by the Company with the SEC since the beginning of the first fiscal year referred to in clause (i) above (the forms, reports, registration
statements, prospectuses and other documents referred to in clauses (i), (ii) and (iii) above, whether or not available through EDGAR,
are, collectively, the “SEC Reports”) and (iv) all certifications and statements required by (A) Rules 13a-14
or 15d-14 under the Exchange Act, and (B) 18 U.S.C. §1350 (Section 906 of the Sarbanes-Oxley Act of 2002, as amended) with respect
to any report referred to in clause (i) above. The SEC Reports (x) were prepared in all material respects in accordance with the requirements
of the Securities Act and the Exchange Act, as the case may be, and the rules and regulations thereunder and (y) did not, as of their
respective effective dates (in the case of SEC Reports that are registration statements filed pursuant to the requirements of the Securities
Act) and at the time they were filed with the SEC (in the case of all other SEC Reports) contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in order to make the statements made therein, in the light
of the circumstances under which they were made, not misleading. The certifications and statements referenced in clause (iv) above are
each true as of their respective dates of filing. As used in this Section 3.13, the term “file” shall be broadly construed
to include any manner permitted by SEC rules and regulations in which a document or information is furnished, supplied or otherwise made
available to the SEC. As of the date of this Agreement, (A) the Securities is listed on NYSE American (“NYSE Amex”),
(B) the Company has not received any written deficiency notice from NYSE AMEX relating to the continued listing requirements of such Securities,
and (C) there are no Actions pending or, to the Knowledge of the Company, threatened against the Company by the New York Stock Exchange
(“NYSE”) and/or Financial Industry Regulatory Authority (“FINRA”) with respect to
any intention by such entity to suspend, prohibit or terminate the quoting of such Securities on NYSE Amex. For purposes of this Agreement,
the term “Knowledge of the Company” shall mean the actual knowledge of Harold Lyons.

 

    5

     

    

 

3.14
 Compliance with NYSE American Continued Listing Requirements. The Company is, and has
no reason to believe that it shall not, upon the issuance of the Securities hereunder, continue to be, in compliance with the listing
and maintenance requirements for continued listing on NYSE Amex in all material respects. Assuming the representations and warranties
of the Investors set forth in Section 4 are true and correct in all material respects, the consummation of the transactions contemplated
by the Plan does not contravene the rules and regulations of NYSE Amex. Except as set forth in the SEC Reports, there are no proceedings
pending or threatened against the Company relating to the continued listing of the Securities on NYSE Amex and the Company has not received
any notice of the delisting of the Securities from NYSE Amex.

 

In
a telephone conversation with NYSE Amex representatives on August 9, 2021, NYSE Amex representatives informed the Company that the approval
of the plan of reorganization by the Bankruptcy Court, after a vote on the plan of reorganization in which a majority of the stockholders
who voted on the reorganization plan voted in favor of the plan, was a sufficient substitute for the Company seeking stockholder approval
of the issuance of the Securities pursuant to NYSE Amex Rule 713, but until NYSE Amex approves an Additional Listing Application covering
the Securities, the Company cannot provide any assurance that NYSE Amex will not change its position and require a further stockholder
approval of the issuance of Securities in compliance with NYSE Amex Rule 713. Reference is made to the Company’s public disclosure
of receipt of notice from NYSE Amex of the Company’s non-compliance with NYSE Amex’s stockholders’ equity continued
listing standards set forth in NYSE American Company Guide Section 1003(a)(ii); the Company has not received any notice from NYSE Amex
either suspending, discontinuing, or indicating NYSE’s Amex’s intent to suspend or discontinue the listing of the Company’s
stock as a result of such non-compliance. Reference is made to Section 1002 of the NYSE American Company Guide (“Company Guide”)
and the ability of NYSE Amex to suspend or discontinue the listing of an issuer’s shares based on events set forth such Section
1002 of the Company Guide; the Company has not received any notice from NYSE Amex’s intent to suspend or discontinue the listing
of the Company’s stock based on Section 1002 of the Company Guide.

 

3.15
 Not An Investment Company. The Company is not, and as a result of the sale of the Securities
to the Investors will not be, required to register under the U.S. Investment Company Act of 1940, as amended.

 

3.16
 DWAC Eligible. The Company’s Common Stock is currently eligible at the Depository
Trust Company (“DTC”) for services pursuant to DTC’s operational arrangements, and the Company has not
received any notice from DTC of its intent to discontinue such services.

 

3.17
 [Reserved].

 

    6

     

    

 

3.18
 Foreign Corrupt Practices. Neither the Company, nor, to the Knowledge of the Company,
any director, officer, agent, employee, or other person associated with or acting on behalf of the Company has (A) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (B) made any direct
or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (C) violated or is in violation
of any provision of the Foreign Corrupt Practices Act of 1977; or (D) made any bribe, rebate, payoff, influence payment, kickback or other
unlawful payment.

 

3.19
 Books And Records. The books of account, minute books, stock record books, and other
records of the Company, have been made available to Investors, have been properly kept and contain no inaccuracies except for inaccuracies
that would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the Company.

 

3.20
 [Reserved].

 

3.21
 Absence of Certain Changes or Events. Since the date of the balance sheet included in
the most recent financials filed with the SEC (the “Latest Balance Sheet Date”), the Company has:

 

(a)
 not waived or compromised any valuable right or material debt owed to it;

 

(b)
 not incurred any material obligation, liability or commitment (fixed or contingent), except
trade obligations in the ordinary course of business; and

 

(c) not
declared , set aside, or paid any distribution in respect of any of the Company’s capital stock, or made any direct or indirect
redemption, purchase, or other acquisition of any of such stock.

 

 

3.22
 Tax Matters.

 

(a)
 To the Company’s knowledge: (i) the Company has timely filed all returns, declarations,
reports, estimates, information returns, and statements, including any schedules and amendments to such documents (“Company
Returns”), that were due and required to be filed in respect of any Taxes by any taxing authority having jurisdiction; (ii)
all such Company Returns are complete and accurate in all material respects; (iii) to the extent not precluded as a result of the filing
of the Chapter 11 Cases, the Company has timely and properly paid all Taxes required to be paid by it; (iv) the Company has established
, in accordance with GAAP, reserves that are adequate for the payment of any Taxes not yet due and payable; and (v) the Company has complied
with all applicable laws, rules, and regulations relating to the collection or withholding of Taxes from third parties, including without
limitation employees, and the payment thereof (including withholding of Taxes under Internal Revenue Code of 1986 (“Code”)
Sections 1441 and 1442).

 

(b) For
all purposes of this Agreement, the terms “Tax” and “Taxes” shall mean any federal,
state, local or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, property
or windfall profits taxes, environmental taxes, customs duties, capital stock, franchise, employees’ income withholding, foreign
or domestic withholding, social security, unemployment, disability, workers’ compensation, employment-related insurance, real property,
personal property, sales, use, transfer, value added, alternative or add-on minimum or other governmental tax, fee, assessment or charge
of any kind whatsoever including any interest, penalties or additions to any Tax or additional amounts in respect of the foregoing.

 

    7

     

    

 

(c)
 There have been made available to the Investors true and complete copies of all Company tax
returns with respect to taxes based on net income and any other Company tax returns requested by the Investors that may be relevant to
the Company or its respective business, assets, or operations for any and all taxable periods ending before the date hereof and for any
other taxable periods that remain subject to audit or investigation by any tax authority.

 

(d)
 The Company is a corporation or association taxable as a corporation for federal income tax
purposes.

 

3.23
 Brokers or Finders. Except as set forth on Schedule 3.23, neither the Investors nor the
Company have nor will incur, directly, or indirectly, as a result of any action taken by or on behalf of the Company, any liability for
brokerage or finders’ fees in connection with the transactions contemplated hereby.

 

3.24
 Disclosure. Neither this Agreement, nor any other written statement furnished to the
Investors or their counsel in connection with the offer and sale of the Securities contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact necessary in order to make the statements contained therein or herein not
misleading in the light of the circumstances under which they were made. There is no fact which the Company has not disclosed to the Investors
in writing that, to the knowledge of the Company, materially adversely affects, the ability of the Company to perform this Agreement or
the other actions contemplated herein.

 

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS.

 

The Investors, severally and
not jointly, hereby represent and warrant to the Company, as of the date hereof and as of the Closing, as follows:

 

4.1
 Business and Financial Experience. Each Investor is an accredited investor within the
meaning of Rule 501 of Regulation D promulgated under the Securities Act and has such knowledge and experience in financial and business
matters that each Investor is capable of evaluating the merits and risks of the Investor’s purchase of Securities as contemplated
by this Agreement. Each Investor’s financial situation is such that such Investor can afford to bear the economic risk of holding
the Securities for an indefinite period of time and suffer complete loss of such Investor’s investment.

 

4.2 Non-U.S.
Person. Each Investor is not a “U.S. Person” as defined by Regulation S and is not acquiring the Securities for the account
or benefit of a U.S. Person. Each Investor acknowledges that the Investor was not in the United States at the time the offer to purchase
the Securities was received from the Company and that all substantive negotiations and communications between the Investors and the Company
have occurred outside the United States. Each Investor agrees not to engage in hedging transactions with regard to the Securities unless
in compliance with the Securities Act.

 

4.3
 Investment Intent; Blue Sky. Each Investor is acquiring the Securities for investment
for such Investor’s own account, not as a nominee or agent, and not with a view to or for resale in connection with any distribution
thereof. Each Investor understands that the issuance of the Securities has not been, and will not be, registered under the Securities
Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon,
among other things, the bona fide nature of the Investor’s true and correct state of domicile, upon which the Company may rely for
the purpose of complying with applicable Blue Sky laws.

 

4.4
 Rule 144. Each Investor acknowledges that the Securities must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from such registration is available. Each Investor is aware of
the provisions of Rule 144 promulgated under the Securities Act that permit limited resale of shares purchased in a private placement
subject to the satisfaction of certain conditions, including, among other things, cessation of status as a “shell company”
as defined pursuant to the Securities Act, the existence of a public market for the shares, the availability of certain current public
information about the Company, required holding periods, the sale being effected through a “broker’s transaction” or
in a transaction directly with a “market maker”, and applicable volume limitations. The Company makes no representation as
to the future availability of any exemption from such registration requirements.

 

    8

     

    

 

4.5
 Restrictions on Transfer; Restrictive Legends. Each Investor understands that the transfer
of the Securities, if applicable, is restricted by applicable state and federal securities laws, and that the certificates representing
the Securities will be imprinted with legends restricting transfer except in compliance therewith.

 

4.6
 Access To Company Information. Each Investor has had an opportunity to review and discuss
the Company’s business, management, and financial affairs with the Company’s management. Each Investor understands that such
discussions, as well as any written information issued by the Company, were intended to describe the material aspects of the Company’s
business. Each Investor has also had an opportunity to review all materials provided to them by the Company in connection with this Agreement
and to ask questions of the officers of the Company.

 

4.7
 Authorization. All action on the part of each Investor necessary for the authorization,
execution, delivery, and performance of this Agreement by the Investor, the purchase of and payment for the Securities and the performance
of all of such Investor’s obligations under this Agreement has been taken or will be taken prior to the Closing. This Agreement,
when executed and delivered by each Investor, shall constitute the valid and binding obligation of each Investor, enforceable in accordance
with its terms, subject to laws of general application relating to bankruptcy, insolvency, and the relief of debtors and rules of law
governing specific performance, injunctive relief, or other equitable remedies. The execution of this Agreement and consummation by Investors
of the transactions on their part contemplated herein will not breach or violate any order or judgment of any court or governmental agency
or any contract or agreement to which any of the Investors is a party or may be bound.

 

4.8
 Brokers or Finders. The Company has not and will not incur, directly or indirectly, as
a result of any action taken by any Investor, any liability for brokerage or finders’ fees or agents’ commissions or any similar
charges in connection with this Agreement or the transactions contemplated hereby. Without limiting generality of the foregoing, the Investors
shall pay and be solely responsible for, and shall indemnify and hold the Company harmless firm and against any claim relating to, any
fees, compensation or remuneration due or owing to the Breckenridge Group and Robert G. Oliver.

 

4.9
 No Violations, Etc. None of the Investors has had a criminal conviction; been the subject
of any regulatory enforcement action or any civil order or judgment involving financial fraud or wrongdoing; or been denied or had revoked
any license or permit involving securities or any financial business.

 

SECTION 5. CONDITIONS
TO EACH PARTY’S OBLIGATIONS.

 

The
obligations of each Party to consummate the transactions described herein shall be subject to the satisfaction or written waiver (where
permissible) by the Company and the Investor Representative of the following conditions:

 

5.1 Required
Bankruptcy Court Approval. The Bankruptcy Court shall have entered an order confirming the Plan.

 

    9

     

    

 

5.2 Plan
Effective Date. The date on which all conditions to effectiveness of the Plan have been satisfied and the effectiveness of the Plan
has been declared by the Company, in consultation with the Investor Representative, (the “Plan Effective Date”)
is on or before September 30, 2021.

 

5.3 No
Objection. NYSE Amex shall have raised no objection to the consummation of the transactions contemplated by the Plan and the publicly
traded shares of Common Stock shall not have been delisted from NYSE Amex.

 

5.4 No
Stop Order. No stop order or suspension of trading shall have been imposed by NYSE Amex, the SEC, or any other governmental or regulatory
body with respect to public trading in the publicly traded shares of Common Stock.

 

5.5 Additional
Listing. The Company shall have filed the NYSE Amex Additional Listing Application with NYSE for the listing of the Securities, a
copy of which have been provided to the Investor Representative.

 

5.6 Securities
Registration. The Securities are registered under Section 12(b) of the Exchange Act, and the Company has not taken any action designed
to or likely to have the effect of termination the registration of the Securities under the Exchange Act.

 

SECTION 6. CONDITIONS TO CLOSING OF THE PURCHASERS.

 

The
Investors obligation to purchase the Securities is, unless waived in writing by the Investor Representative, subject to the fulfillment
as of the Closing Date of the following conditions:

 

6.1
 Representations and Warranties Correct. The representations and warranties made by the
Company in Section 3 hereof shall be true and correct in all material respects as of the Closing Date.

 

6.2
 Covenants. All covenants, agreements and conditions contained in this Agreement to be
performed or complied with by the Company have been performed or complied with in all material respects.

 

6.3
 Compliance Certificate. The Company shall have delivered to the Investors a certificate
of the Company executed by the President and Chief Executive Officer of the Company, dated as of the Closing Date certifying to the fulfillment
of the conditions specified in Sections 6.1 and 6.2 of this Agreement.

 

6.4 Certificate
of Incorporation. The Amended and Restated Certificate of Incorporation, substantially in the form of Exhibit C attached hereto
(“Restated Certificate”), shall have been filed with the Secretary of State of Delaware.

 

6.5 Bylaws.
The Amended and Restated Bylaws, substantially in the form of Exhibit D attached hereto (“Restated Bylaws”),
shall have been adopted by the bylaws for the Company.

 

6.6 Stockholders.
As of the Plan Effective Date, the existing holders of the Common Stock shall be entitled retain all interests in such Common Stock without
impairment or cancellation.

 

6.7 UK
Subsidiaries. ACY SN 19002 Limited and ACY 19003 Limited (collectively, the “UK Entities”) shall have remitted
any cash, including the full amount of the tax refunds received by UK Entities prior to the Plan Effective Date, to JetFleet Holding Corp.,
a California corporation (“JHC”), and concurrent with the Plan Effective Date, the Company shall transfer to
JHC 100% of the ownership interests of  ACY SN 15129 LLC, a Delaware limited liability
company, JetFleet Management Corp., a California corporation, 1314401 Alberta Inc., d/b/a JetFleet Canada, an Alberta, Canada corporation,
and the UK Entities.

 

    10

     

    

 

6.8
 Board of Directors. The Company shall have taken all actions necessary to establish the
total number of directors constituting the Board of Directors of the Company as five (5) directors and Yucheng Hu, Florence Ng, Jianan
Jiang, Qin Yao, and Siyuan Zhu shall have been appointed or elected, as applicable, to serve as directors of the Company effective as
of 12:01 a.m. Pacific Time on October 1, 2021.

 

6.9
 Employment Agreements. All of the Company’s employment agreements or relationships,
written or oral, shall have been cancelled as of the Closing Date.

 

6.10
 Required Notice. The Company shall have properly prepared, filed with the SEC and dispatched
to stockholders the Form 14f-1 and the 10-day period required by Rule 14f-1 shall have elapsed. Notwithstanding the foregoing, the Investors
shall bear the costs and expenses of drafting, printing, mailing and filing the Form 14f-1.

 

6.11
 Resignations and Terminations. Each of the Company’s officers and employees shall
have resigned or been terminated in writing (and provided a full release of any and all liabilities against the Company) by the Company
effective as of the Closing, and all existing members of the Board of Directors shall have delivered their written resignations from the
Board of Directors, effective as of the Closing.

 

6.12
 Share and Warrant Certificates. The Company (or its authorized transfer agent and registrar)
shall have issued and delivered to the Investors certificates representing the Securities in accordance with this Agreement.

 

6.13
 [Reserved].

 

6.14
 Proceedings. On or before the Closing Date, all actions, proceedings, instruments and
documents required by, or on behalf of, the Company to execute, deliver and carry out this Agreement, and all agreements incidental hereto,
and all other related legal matters, shall be reasonably satisfactory to the Investors and their counsel.

 

6.15
 No Material Event. The Investors shall not have discovered any material error in, misstatement
of or omission to disclose any material fact relating to the Company.

 

6.16 Reports
and Returns. The Company shall have timely filed its Form 10-Q for the quarter ended June 30, 2021 and such other periodic reports
as may be required to be filed with the SEC and shall have filed federal and state tax returns for such fiscal year to the extent required
to be filed prior to the Closing.

 

SECTION 7. CONDITIONS TO CLOSING OF THE COMPANY.

 

The
Company’s obligation to issue and sell and issue the Securities is, unless waived in writing by the Company, subject to the fulfillment
as of the Closing Date of the following conditions:

 

7.1
 Representations and Warranties Correct. The representations and warranties made by the
Investors in Section 4 hereof shall be true and correct in all material respects as of the Closing Date.

 

7.2
 Covenants. All covenants, agreements, and conditions contained in this Agreement to be
performed or complied with by the Investors on or prior to the Closing Date shall have been performed or complied with in all material
respects.

 

    11

     

    

 

7.3
 Compliance Certificate. The Investors shall have delivered to the Company a certificate
executed by each of the Investors dated as of the Closing Date certifying to the fulfillment of the conditions specified in Sections
7.1 and 7.2.

 

7.4
 Required Notice. The Company shall have properly prepared, filed with the SEC and dispatched
to stockholders the Form 14f-1 and the 10-day period required by Rule 14f-1 shall have elapsed.

 

SECTION 8. COVENANTS OF THE COMPANY.

 

8.1
 Other Offers. Pending consummation of the transactions contemplated herein, the Company
shall not seek or solicit other purchasers of the Company or any equity interest in the Company or otherwise entertain any proposal therefor,
subject, however, to the fiduciary responsibility of the Company’s Board of Directors.

 

8.2
 Regulatory Reports. As soon as practicable on or after the Effective Date, the Company
shall file with the SEC and dispatch to its stockholders an information statement (the “Form 14f-1”) satisfying
all of the requirements of Section 14(f) of the Exchange Act and Rule 14f-1 promulgated thereunder with respect to this Agreement and
the transactions contemplated hereby. The Company shall prepare and file timely with the SEC, state securities departments and other applicable
regulatory authorities, including FINRA, such other reports or other filings as may be required in connection with the transactions contemplated
herein.

 

8.3
 Disclosure Review. The Company will furnish to the Investors copies of all documents
disclosing this Agreement, the transactions contemplated herein and other of the matters discussed herein that the Company proposes to
file with the SEC, including all amendments, supplements or exhibits thereto. All such copies must be provided sufficiently in advance
to provide a reasonable opportunity to review such document and comment thereon. The Company agrees not to file any document described
in this Section 8.3 if an Investor has expressed its objection to such filing or the substance thereof. Notwithstanding this Section
8.3, if (i) no Investor has communicated an objection and (ii) three business days have elapsed since the date on which all Investors
received a copy of a proposed filing, then the Company may file such document with the SEC.

 

8.4 Dividend.
As promptly as practicable following the Plan Effective Date, the Company will make a cash dividend distribution to Legacy ACY Shareholders
(as defined below) in the aggregate amount of $1,000,000 (“Cash Dividend”). For the purpose of this agreement
“Legacy ACY Shareholders” means any holder of Common Stock as the day prior to the Plan Effective Date.

 

8.5 JHC
Series A Preferred Stock. Concurrent with the Closing, the Company will enter into a Series A Preferred Stock Purchase Agreement with
JHC, substantially in the form of Exhibit E attached hereto, for the purchase of 104,082 shares of Series A Preferred Stock of
JHC for an aggregate purchase price of $2,000,000.

 

    12

     

    

 

SECTION 9. INVESTOR REPRESENTATIVE.

 

9.1  By
the execution and delivery of this Agreement, each Investor, on behalf of itself and its successors and assigns, hereby irrevocably constitutes
and appoints Yucheng Hu in his capacity as the Investor Representative, as the true and lawful agent and attorney-in-fact of such Investor
with full powers of substitution to act in the name, place and stead of thereof with respect to the performance on behalf of such Investor
under the terms and provisions of this Agreement and the Escrow Agreement to which the Investor Representative is a party, as the same
may be from time to time amended, and to do or refrain from doing all such further acts and things, and to execute all such documents
on behalf of such Investor, if any, as the Investor Representative will deem necessary or appropriate in connection with any of the transactions
contemplated under this Agreement or Escrow Agreement, including: (i) acting on behalf of such Investor under the Escrow Agreement; (ii)
terminating, amending or waiving on behalf of such Investor any provision of this Agreement or the Escrow Agreement to which the Investor
Representative is a party (provided, that any such action, if material to the rights and obligations of Investors in the reasonable judgment
of the Investor Representative, will be taken in the same manner with respect to all Investors unless otherwise agreed by each Investor
who is subject to any disparate treatment of a potentially material and adverse nature); (iii) signing on behalf of such Investor any
releases or other documents with respect to any dispute or remedy arising under this Agreement or Escrow Agreement; (iv) employing and
obtaining the advice of legal counsel, accountants and other professional advisors as the Investor Representative, in its reasonable discretion,
deems necessary or advisable in the performance of its duties as the Investor Representative and to rely on their advice and counsel;
(v) incurring and paying reasonable out-of-pocket costs and expenses, including fees of brokers, attorneys and accountants incurred pursuant
to the transactions contemplated hereby, and any other reasonable out-of-pocket fees and expenses allocable or in any way relating to
such transaction, whether incurred prior or subsequent to Closing; (vi) receiving all or any portion of the Escrow Deposit provided to
the Investors under the Escrow Agreement and to distribute the same to the Investors as applicable; and (vii) otherwise enforcing the
rights and obligations of any such Investors under this Agreement and the Escrow Agreement, including giving and receiving all notices
and communications hereunder or thereunder on behalf of such Investor. All decisions and actions by the Investor Representative, including
any agreement between the Investor Representative and the Company related to this Agreement and the Escrow Agreement, shall be binding
upon the Investors and their respective successors and assigns, and neither they nor any other Party shall have the right to object, dissent,
protest or otherwise contest the same. The provisions of this Section 9.1 are irrevocable and coupled with an interest. The Investor
Representative hereby accepts its appointment and authorization as the Investor Representative under this Agreement

 

9.2  The
Company and the Escrow Agent may conclusively and absolutely rely, without inquiry, upon any actions of the Investor Representative as
the acts of the Investors hereunder or the Escrow Agreement. The Company and the Escrow Agent shall not have any liability to any Investors
for any allocation or distribution among the Investors by the Investor Representative of payments made to or at the direction of the Investor
Representative. All notices or other communications required to be made or delivered to an Investor under this Agreement or the Escrow
Agreement shall be made to the Investor Representative for the benefit of such Investor, and any notices so made shall discharge in full
all notice requirements of the other parties hereto or thereto to such Investor with respect thereto. All notices or other communications
required to be made or delivered by an Investor shall be made by the Investor Representative (except for a notice under Section 9.4
of the replacement of the Investor Representative).

 

9.3  The
Investor Representative will act for the Investors on all of the matters set forth in this Agreement in the manner the Investor Representative
believes to be in the best interest of the Investors, but the Investor Representative will not be responsible to the Investors for any
losses that any Investor may suffer by reason of the performance by the Investor Representative of the Investor Representative’s
duties under this Agreement, other than Losses arising from the bad faith, gross negligence or willful misconduct by the Investor Representative
in the performance of its duties under this Agreement. The Investors do hereby jointly and severally agree to indemnify, defend and hold
the Investor Representative harmless from and against any and all losses reasonably incurred or suffered as a result of the performance
of the Investor Representative’s duties under this Agreement, except for any such liability arising out of the bad faith, gross
negligence or willful misconduct of the Investor Representative. In no event shall the Investor Representative in such capacity be liable
to the Investors hereunder or in connection herewith for any indirect, punitive, special or consequential damages. The Investor Representative
shall not be liable for any act done or omitted under this Agreement or the Escrow Agreement as the Investor Representative while acting
in good faith and without willful misconduct or gross negligence, and any act done or omitted pursuant to the advice of counsel shall
be conclusive evidence of such good faith. The Investor Representative shall be fully protected in relying upon any written notice, demand,
certificate or document that it in good faith believes to be genuine, including facsimiles or copies thereof. In connection with the performance
of its rights and obligations hereunder, the Investor Representative shall have the right at any time and from time to time to select
and engage, at the reasonable cost and expense of the Investors, attorneys, accountants, investment bankers, advisors, consultants and
clerical personnel and obtain such other professional and expert assistance, maintain such records and incur other reasonable out-of-pocket
expenses, as the Investor Representative may reasonably deem necessary or appropriate from time to time, but the Investor Representative
will not be entitled to any fee, commission or other compensation for the performance of its services hereunder. All of the indemnities,
immunities, releases and powers granted to the Investor Representative under this Section 9.3 shall survive the Closing and continue
indefinitely.

 

    13

     

    

 

9.4  If
the Investor Representative shall die, become disabled, resign, or otherwise be unable or unwilling to fulfill his responsibilities as
representative and agent of Investors, then the Investors shall, within ten (10) days after such death, disability, resignation, or other
event, appoint a successor Investor Representative (by vote or written consent of the Investors), and promptly thereafter (but in any
event within two (2) business days after such appointment) notify the Company in writing of the identity of such successor. Any such successor
so appointed shall become the “Investor Representative” for purposes of this Agreement.

 

SECTION 10. MISCELLANEOUS.

 

10.1
 Governing Law. This Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of Delaware without giving effect to conflict of laws provisions.

 

10.2
 Entire Agreement; Amendment. This Agreement, and any other documents delivered pursuant
hereto, including exhibits or schedules hereto constitute the full and entire understanding and agreement among the parties with regard
to the subject hereof and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants
except as specifically set forth herein or therein. Except as expressly provided herein, neither this Agreement nor any term hereof may
be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Investor Representative.

 

10.3
 Notices, Etc. All notices and other communications required or permitted hereunder shall
be in writing and shall be mailed by registered or certified mail, postage prepaid, or otherwise delivered by electronic mail, facsimile
transmission, by hand or by messenger or overnight express, addressed:

 

(a)
 if to any Investors to be delivered in care of the Investor Representative.

 

(b)  if
to the Investor Representative, to:

 

Yucheng Hu

Floor 7 Suite
AB, Yuanyang Guangha

International
Chaoyang District

Beijing, China

Email: huyucheng@me.com

 

    14

     

    

 

or at such other address
as the Investor Representative shall have furnished to the Company with a copy to (which copy shall not constitute notice):

 

Lewis Brisbois
Bisgaard & Smith LLP

2020 West El Camino
Avenue, Suite 700

Sacramento, CA
95833

Attn: John P.
Yung

Facsimile: 916.564.5444

Email: John.yung@lewisbrisbois.com

 

(c)  if
to the Company, to:

 

AeroCentury Corp., et
al.

1440 Chapin Avenue,
Suite 310

Burlingame, California
92618

Attention: Harold
M. Lyons

Email: hal.lyons@aerocentury.com

 

or at such other address
as the Company shall have furnished to the Investor Representative with a copy to (which copy shall not constitute notice):

 

Young Conaway
Stargatt & Taylor, LLP

Rodney Square

1000 N. King Street

Wilmington, DE 19801

Attention: Joseph
Barry, Craig D. Grear, and Joseph Mulvihill

Facsimile: (302)576-3296

Email:    jbarry@ycst.com

cgrear@ycst.com

jmulvihill@ycst.com

 

Each such notice or other
communication shall for all purposes of this Agreement be treated as effective or having been given when received if delivered personally,
if sent by electronic mail or facsimile, the first business day after the date of confirmation that the electronic mail or facsimile,
as applicable, has been successfully transmitted to the email address or facsimile number, as applicable, for the party notified, or,
if sent by mail, at the earlier of its receipt and seventy-two (72) hours after the same has been deposited in a regularly maintained
receptacle for the deposit of the United States mail, addressed and mailed as aforesaid.

 

10.4 Delays
or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any party,
upon any breach or default of another party under this Agreement, shall impair any such right, power, or remedy of such party nor shall
it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter
occurring; nor shall nay waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent, or approval of any kind or character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective
only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to
any party, shall be cumulative and not alternative.

 

    15

     

    

 

10.5 Expenses.
Each party will pay all of their expenses, including without limitation counsel or other professional fees and disbursements but excluding
any brokerage or finders’ fees or agents’ commissions or any similar charges, reasonably incurred in connection with the negotiation
and preparation of this Agreement and the transactions contemplated herein.

 

10.6 Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be an original, and all of which together shall constitute
one instrument.

 

10.7 Severability.
In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said provision, which shall be replaced with an enforceable provision
closest in intent and economic effect as the severed provision; provided that no such severability shall be effective if it materially
changes the economic benefit of this Agreement to any party.

 

10.8 Title
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement.

 

10.9 Knowledge
Convention. For all purposes of this Agreement, the term “knowledge” means, with respect to an individual, that such individual
is actually aware of a particular fact or other matter, with no obligation to conduct any inquiry or other investigation to determine
the accuracy of such fact or other matter. A person other than an individual shall be deemed to have knowledge of a particular fact or
other matter if the officers, directors or other management personnel of such person had knowledge of such fact or other matter.

 

10.10 Survival
of Warranties. The representations and warranties of the Company and the Investors contained in or made pursuant to this Agreement
shall survive execution and delivery of this Agreement and the Closing for a period of two years and shall in no way be affected by any
investigation of the subject matter thereof made by or on behalf of the Investors or the Company.

 

10.11 Successors
and Assigns. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon,
the successors, assigns, heirs, executors and administrators of the parties hereto, as the case may be.

 

10.12 Further
Assurances. Each party hereto agrees to do all acts and things, and to make, execute and delivery such written instruments, as shall
from time to time be reasonably required to carry out the terms and provisions of this Agreement.

 

[Signatures on Following
Page]

 

    16

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Securities Purchase Agreement as of the day and year first above written.

 

	 	The Company:
	 	 
	 	Aerocentury Corp.
	 	 
	 	By:	/s/ Michael Magnusson
	 	Name:	President
	 	Title:	 
	 	 
	 	Investors:
	 	
	 	/s/ Yucheng Hu
	 	Yucheng Hu
	 	 
	 	/s/ TongTong Ma
	 	TongTong Ma
	 	
	 	/s/ Qiang Zhang
	 	Qiang Zhang
	 	
	 	/s/ Yanhua Li
	 	Yanhua Li
	 	
	 	/s/ Yiyi Huang
	 	Yiyi Huang
	 	
	 	/s/ Yu Wang
	 	Yu Wang
	 	
	 	/s/ Hao Yang
	 	Hao Yang
	 	
	 	/s/ Jing Li
	 	Jing Li
	 	
	 	/s/ Yeh Cheng
	 	Yeh Cheng
	 	 
	 	Investor Representative:
	 	 
	 	/s/ Yucheng Hu
	 	Yucheng Hu

 

[Signature Page to Securities Purchase Agreement]

 

    

     

    

 

Exhibit A

 

SCHEDULE
OF INVESTORS

 

 

	Name and Address of Purchaser	 	Shares	 	 	Investment	 
	Yucheng Hu 
Group 7,Yantai Village, Liaoye Town, 
Yingshan, Sichuan, China 637700	 	 	1,598,201	 	 	$	6,153,073.85	 
	TongTong Ma 
4-3-8 Guofeng Community, Congtai District, 

Handan, Hebei, China 056000	 	 	181,818	 	 	$	699,999.30	 
	Qiang Zhang 
Group 6,Yantai Village, Liaoye Town, 
Yingshan, Sichuan, China 637700	 	 	207,792	 	 	$	799,999.20	 
	Yanhua Li 
58 Litao Hutong, Fusan Village, Dianshang, 

Handan, Hebei, China 057350	 	 	194,805	 	 	$	749,999.25	 
	Yiyi Huang 
Huoli Kangcheng Community, Houjiatang Street, 

Yuhua District, Changsha, Hunan, China 410000	 	 	168,831	 	 	$	649,999.35	 
	Yu Wang 
D1988 Jindi Sanqianfu, Leifeng Road, 

Wangcheng, Changsha, Hunan, China 410000	 	 	51,948	 	 	$	199,999.80	 
	Hao Yang 
G2-102 Xinchengshijia, Renmin East Road 398, 

Changsha, Hunan, China 410000	 	 	207,792	 	 	$	799,999.20	 
	Jing Li 
6 Floor, Sigma Plaza, No. 49 Zhichun Road, 

Haidian District, Beijing, China 100000	 	 	181,818	 	 	$	699,999.30	 
	Yeh Cheng 
World Trade Apartment, Building B, 
Apartment 5e, Beijing,China 100001	 	 	77,922	 	 	$	299,999.70

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