Document:

Exhibit
10.12

Execution
Copy

CONFIDENTIAL TREATMENT
REQUESTED.  CONFIDENTIAL PORTIONS OF 

THIS DOCUMENT HAVE BEEN REDACTED
AND HAVE BEEN SEPARATELY 

FILED WITH THE COMMISSION

USED BEECHCRAFT 1900D AIRLINER PURCHASE AGREEMENT

On
this 12th day of March, 2007, this Agreement (this “Agreement”) is made
and entered into by and between Champlain
Enterprises, Inc. d/b/a CommutAir, a corporation organized under the
laws of the State of New York with an address at 518 Rugar Street, Plattsburgh,
NY 12901 (“Seller”) and Big Sky
Transportation Co. d/b/a Big Sky Airlines, a corporation organized
under the laws of Montana with an address at 1601 Aviation Place, Billings,
MT  59105 (“Buyer”).

RECITALS 

A. Seller is the owner of
twelve (12) used Beechcraft Model 1900D Airliner aircraft, each together with
two Pratt & Whitney PT 6A-67D engines, two Hartzell HC-E4A-3J propellers,
avionics, parts, components, and equipment installed thereon and all records,
logs, manuals, books, and other documents relating thereto.

B. Seller intends to sell,
and Buyer intends to purchase, pursuant to the terms set forth in this
Agreement, the eight (8) used Beechcraft Model 1900D Airliner aircraft,
together with the engines, propellers, avionics, parts, components, and
equipment installed thereon listed on Schedule A attached to and
incorporated into this Agreement, and all records, logs, manuals, books, and
other documents relating to such aircraft (collectively referred to as the “Aircraft”).

C.
Seller intends to grant to Buyer a right of first refusal to purchase the four
(4) used Beechcraft Model 1900D Airliner aircraft, together with the engines,
propellers, avionics, parts, components, and equipment installed thereon listed
on Schedule B attached to and incorporated into this Agreement, and all
records, logs, manuals, books, and other documents relating thereto
(collectively referred to as the “Optioned Aircraft”).

NOW,
THEREFORE, for and in consideration of the mutual promises, covenants and
agreements set forth herein, the receipt and sufficiency of which are hereby
acknowledged, Seller and Buyer agree as follows:

ARTICLE 1: ACQUISITION AND PURCHASE OF THE AIRCRAFT 

1.1                                 Aircraft. Subject
to the terms and conditions set forth in this Agreement, Seller agrees to sell
to Buyer, and Buyer agrees to purchase from Seller, the Aircraft.

ARTICLE 2: PURCHASE PRICE 

2.1                                 Purchase Price. Buyer
agrees to pay Seller the purchase price for each Aircraft in the amount of *** Dollars ($***), in sum
total for all Aircraft in the amount of *** Dollars ($***) (hereafter the “Purchase
Price”).

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with the
Securities and Exchange Commission.

The Purchase Price shall be
paid as follows:

(i)                                     Upon the execution of this Agreement, Buyer shall pay to
Seller $*** by wire transfer into an account
identified by Seller (the “Downpayment”). The Downpayment shall be a
nonrefundable payment, subject to Seller’s performance under Section 3.3(c) of
this Agreement, which may be used by Seller in the operation of its
business.  Seller shall apply the
Downpayment to the Purchase Price as set forth below.

(ii)                                  The remaining *** Dollars ($***) shall be
paid in the following manner. On or before the delivery date of each of the
eight Aircraft, as such delivery dates are set forth in Schedule C, (i) Buyer
shall pay to Robert M. Peregrin, Esq., Dougherty, Fowler, Peregrin, Haught and
Jensen, 204 North Robinson, Suite 900, Oklahoma City, Oklahoma  73120 (the “Escrow Agent”) $***, (ii) Buyer shall deliver to the Escrow Agent Buyer’s
Deliverables as defined in Section 3.4 of this Agreement relating to each
specified Aircraft; (iii) Seller shall apply $***
of the Downpayment to the Purchase Price of the subject Aircraft; and (iv) and
Seller shall deliver to the Escrow Agent Seller’s Deliverables as defined in
Section 3.3 of this Agreement relating to each specified Aircraft. Prior to
taking possession of each Aircraft on the delivery dates set forth in Schedule
C, the Escrow Agent shall (a) deliver to Buyer a lien and title report
satisfactory to Buyer, (b) pay to Seller $*** for each
Aircraft ready for delivery to Buyer, (c) record the United States Federal
Aviation Administration (the “FAA”) bill of sale for such specified
Aircraft, (d) deliver to Buyer Seller’s long form bill of sale relating to such
specified Aircraft, (e) deliver to Seller the Final Acceptance and Delivery and
New York State tax exemption certificate as set forth in Section 3.4.  On the occurrence of Closing relating to each
Aircraft, with respect to such Aircraft, the Escrow Agent shall register the
Buyer’s interests in the relevant Aircraft as a “Contract of Sale” pursuant to
the Protocol to the Convention on International Interests in Mobile Equipment
on Matters Specific to Aircraft Equipment and the regulations of the International
Registry of Mobile Assets.

(iii)                             Each party shall also do and perform such other and further
acts and execute and deliver any and all such other and further instruments as
may be required to enable the Escrow Agent to register the Buyer’s interests in
the relevant Aircraft as a “Contract of Sale” pursuant to the Protocol to the
Convention on International Interests in Mobile Equipment on Matters Specific
to Aircraft Equipment and the
regulations of  the International
Registry of Mobile Assets.

2.2                                 Escrow Costs. Buyer and
Seller shall pay fifty percent (50%) of all fees, costs, and expenses of the
Escrow Agent.

2.3                                 Taxes, Fees and Liens.
Buyer agrees to pay, in addition to the Purchase Price, any and all taxes
(including sales, use and property taxes), filing fees, transfer fees, excises,
tariffs, duties or similar fees and charges which may be levied or assessed
upon the Aircraft or this transaction by any regulatory, licensing or taxing
authority, except for any income tax which Seller may incur as a result of the
transactions contemplated by this Agreement. Buyer also agrees to pay any fees
of any type as a result of Buyer’s activities.

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 

 2
 

ARTICLE 3: DELIVERY AND CLOSING

3.1                                 Closing. The
closing of each of the Aircraft shall occur on the dates listed in Schedule
C attached to and incorporated into this Agreement (“Closing Dates”).
The Closing shall proceed through an escrow agreement in the form attached as Exhibit
A.

3.2                                 Condition of
Aircraft. Upon the delivery of each Aircraft to Buyer, (i)
each Aircraft shall be delivered in airworthy condition pursuant to FAA Part
121 and in compliance with all airworthiness directives and mandatory service
bulletins; (ii) all installed equipment and all log book discrepancies shall be
cleared; (iii) there will be at least 2,000 hours left before the next
structural inspection is due; and (iv) all records, logs, manuals, books, and
other documents relating thereto shall be current and in compliance with FAA
regulations (collectively, the “Delivery Conditions”). If an Aircraft is
delivered with less than 2,000 hours left before the next structural inspection,
Buyer shall be entitled to a credit against the Purchase Price equal to an
amount calculated as follows:

	
   

  	
  (2,000 - hours left
  before structural inspection) x $***

  
	
   

  	
  2,000

  

 

3.3                                 Delivery of Aircraft.
Each Aircraft shall be offered for acceptance and delivery at the specified
Closing Dates set forth in Schedule C in accordance with the following
procedure:

(A)                              The parties acknowledge that Seller currently uses and will
continue to use each of the Aircraft in the operation of its business.
Possession of the Aircraft shall at all times remain with Seller until delivery
of the Aircraft to Buyer on the Closing Dates. 
On and following the date that this Agreement is fully executed and delivered
by the parties hereto, Buyer shall be entitled, at its sole cost and expense,
to have a representative present to observe any inspection of the Aircraft that
is conducted pursuant to Seller’s existing maintenance and inspection program.

(B)                                The Aircraft shall be delivered to Buyer on the respective
Closing Dates set forth on Schedule C in Plattsburgh, New York. On such
dates, Buyer shall execute the Certificate of Final Acceptance and Delivery in
the form attached hereto as Exhibit B provided the Delivery
Conditions are satisfied.

(C)                                Title and risk of loss or damage to the Aircraft shall pass
to Buyer upon delivery of the Aircraft to the Buyer. If an Aircraft is lost or
materially damaged prior to its delivery to Buyer, the Seller shall refund to
Buyer the pro rata portion of the Downpayment allocable to such Aircraft and
this Agreement shall terminate with respect to such Aircraft.

3.4                                 Seller’s
Closing Deliverables. Seller shall deliver to the Escrow Agent the
following items (“Seller’s Closing Deliverables”):

(A)                              An original fully executed Long Form Bill of Sale for the
Aircraft in the form of

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 3
 

Exhibit C attached;
and

(B)                                An original FAA Form Bill of Sale.

In addition, Seller shall
make the Aircraft available to Buyer for its inspection, which inspection, at
Buyer’s sole expense, shall include a records check, engine borescope, and test
flight.  Buyer will have the opportunity
to have a representative present during the inspection.

3.5                                 Buyer’s Closing
Deliverables. Buyer shall deliver to the Escrow Agent the
following items:

(A)                              A fully executed Certificate of Final Acceptance and Delivery
in the form of Exhibit B attached hereto;

(B)                                An executed New York sales tax exemption certificate; and

(C)                                Such other documents as may be reasonably required by Seller
to consummate the transactions contemplated in this Agreement.

(D)                               $*** for each
Aircraft.

ARTICLE 4: “AS IS”CONDITION AND SELLER’S DISCLAIMERS 

4.1                                 Warranty of
Title. Seller represents and warrants to Buyer that at the time of delivery
to Buyer, (i) Seller shall have legal title to the Aircraft, and (ii) the
Aircraft shall be transferred to Buyer free and clear of any liens, claims,
charges or encumbrances.

4.2                                 “As Is”
Condition. BUYER
UNDERSTANDS AND AGREES THAT THE AIRCRAFT IS A USED AIRCRAFT AND THAT BUYER IS
PURCHASING THE AIRCRAFT IN AN “AS IS, WHERE IS, AND WITH ALL FAULTS” CONDITION,
SUBJECT ONLY TO THE WARRANTY SPECIFIED ABOVE IN SECTION 4.1. Notwithstanding
the foregoing, to the extent that any parts or components installed on or in
the Aircraft on the Closing Date are subject to any warranty issued by any
manufacturer or remanufacturer thereof, Seller will undertake reasonable steps
(not including or involving the payment of any amount of money) to transfer to
Buyer the contractual right to enforce any such warranty, to the extent same
may be transferable.

4.3                                 Disclaimer of
Warranty. Buyer understands and agrees
to each of the following disclosures, disclaimers, waivers, acknowledgements
and undertakings with respect to the Aircraft:

(A)                              Seller is not the manufacturer of the Aircraft, or of any
part or component installed in or on the Aircraft;

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 4
 

(B)                                the original manufacturer’s warranty on the Aircraft,
including its engines, propellers, and avionics equipment, has expired.
Notwithstanding the foregoing, to the extent that any parts or components
installed on or in the Aircraft on the Closing Date are subject to any warranty
issued by any manufacturer or remanufacturer thereof, Seller will undertake
reasonable steps (not including or involving the payment of any amount of money)
to transfer to Buyer the contractual right to enforce any such warranty, to the
extent same may be transferable.;

(C)                                SELLER MAKES NO WARRANTIES WHATSOEVER,
EITHER EXPRESS OR IMPLIED, RELATING TO THE AIRCRAFT OR THE PRE-CLOSING
MAINTENANCE;

(D)                               BUYER WAIVES ALL EXPRESS OR IMPLIED
WARRANTIES RELATING TO THE AIRCRAFT, WHETHER OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE OR OTHERWISE AND ACKNOWLEDGES AND AGREES THAT NO SUCH
WARRANTIES APPLY TO THE AIRCRAFT OR ANY OTHER PROPERTY BEING TRANSFERRED UNDER
THIS AGREEMENT;

(E)                                 EXCEPT AS PROVIDED IN SECTIONS 4.2 AND
4.3(B) OF THIS AGREEMENT WITH RESPECT TO CERTAIN MANUFACTURERS’ WARRANTIES,
BUYER WAIVES ALL EXPRESS OR IMPLIED WARRANTIES RELATING TO THE PRE-CLOSING
MAINTENANCE (INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY CONCERNING THE QUALITY
OF THE WORKMANSHIP OR SERVICES PERFORMED WITH RESPECT TO THE PRE-CLOSING
MAINTENANCE, OR ANY WARRANTY RELATING TO NEW, USED OR RECONDITIONED PARTS OR
COMPONENTS INSTALLED IN OR ON THE AIRCRAFT IN CONNECTION WITH THE PRE-CLOSING
MAINTENANCE) WHETHER OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR
OTHERWISE AND ACKNOWLEDGES AND AGREES THAT NO SUCH WARRANTIES APPLY TO THE
PRECLOSING MAINTENANCE OR ANY OTHER SERVICES BEING PERFORMED OR PROPERTY BEING
TRANSFERRED UNDER THIS AGREEMENT;

(F)                                 Buyer shall have all risks as to the quality and performance
of the Aircraft;

(G)                                Buyer assumes all costs and risks for any liens,
encumbrances, charges and debts on the Aircraft arising by or through Buyer or
its representatives or as the result of their use, operation, maintenance,
repair or possession of the Aircraft; and

(H)                                     SELLER SHALL NOT BE LIABLE FOR ANY DEFECTS,
EITHER LATENT OR PATENT, IN THE AIRCRAFT NOR FOR ANY GENERAL, CONSEQUENTIAL OR
INCIDENTAL DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY DAMAGES FOR LOSS OF USE,
LOSS OF PROFITS, DIMINUTION OF MARKET VALUE, OR ANY INTERRUPTION IN BUYER’S
BUSINESS RESULTING FROM ITS INABILITY TO USE THE AIRCRAFT FOR ANY REASON
WHATSOEVER. SELLER SHALL NOT BE LIABLE FOR ANY DAMAGES

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 5
 

CLAIMED BY BUYER OR ANY OTHER PERSON OR
ENTITY UPON THE THEORIES OF NEGLIGENCE OR STRICT LIABILITY IN TORT.

4.4                                       Acknowledgement
and Disclaimer. Buyer acknowledges and agrees that, in purchasing
and accepting the Aircraft, (i) Buyer has relied solely upon its own inspection
and evaluation of the Aircraft, (ii) Seller is making no representations or
warranties as to the value, condition, airworthiness, design, operation or
fitness for use of the Aircraft to Buyer, and (iii) Seller is disclaiming, and
Seller does hereby disclaim, any such representation or warranty.

ARTICLE 5: DEFAULT AND TERMINATION 

5.1                                 In the event all conditions of this Agreement are satisfied
and the performance of this Agreement is tendered by a party but the sale is
not consummated through default on the part of the other party on the Closing
Date, the non-defaulting party may exercise any remedy available to it at law
or in equity. The remedies stated herein are cumulative and not exclusive.  Notwithstanding anything to the contrary contained
in this Section 5.1, neither party shall be entitled to consequential and/or
incidental damages.

ARTICLE 6: RIGHT OF FIRST REFUSAL

6.1                                 Seller shall not dispose of the Optioned Aircraft without
first complying with the provisions of this Section. If Seller receives a
written bona fide offer to purchase one or more of the Optioned Aircraft (a “Bona
Fide Offer”), Seller shall provide Buyer with a copy of such Bona Fide Offer
and a written notice of Seller’s intent to accept such offer (“Seller’s Notice”).
Buyer shall notify Seller in writing, within 72 hours of its receipt of Seller’s
Notice, of Buyer’s intention to purchase such Aircraft, or its decision not to
purchase such Aircraft. ***. The
Closing shall take place 30 days after the date of the Bona Fide Offer. If, on
the other hand, Buyer decides not to purchase the Optioned Aircraft, all of
Buyer’s right to purchase such Optioned Aircraft shall terminate and Seller
shall have the right to sell such Optioned Aircraft to the third party
purchaser free and clear of all of Buyer’s right, title, and interest in the
Optioned Aircraft.  In such event, Seller
shall consummate the sale of the Optioned Aircraft to the third party purchaser
within 60 days of receipt of the Bona Fide Offer, and any sale to a third party
purchaser after such date shall require Seller to again provide Buyer with
Seller’s Notice and follow the provisions of this Section 6.1.  At any time, if Buyer fails to respond to
Seller’s Notice within 72 hours of Buyer’s receipt of Seller’s Notice, such
failure shall be treated as Buyer’s decision not to purchase the Optioned
Aircraft.

ARTICLE 7: SUPPORT AGREEMENT

7.1                                 Prior to the delivery of the first Aircraft, the parties
agree to execute a separate agreement which will provide the following support:

(A)                              Spare Parts Package –
Seller agrees to sell and Buyer agrees to buy not less than $*** and up to $*** (the “Parts
Purchase Price”) of serviceable Beech 1900 parts specified by Buyer at delivery
of the first Aircraft.  Buyer shall pay
to Seller ninety percent (90%) of the Parts

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with the
Securities and Exchange Commission.

 6
 

Purchase Price at delivery and the balance in thirty days.

(B)                                Ground Equipment – Seller
will offer for sale certain ground equipment items which have become excess to
its needs such as tow bars, etc. at fair market value.

(C)                                Delivery Support – Seller
will provide reasonable pre-delivery assistance to Buyer at Seller’s
Maintenance Facility prior to each closing. Such assistance will include but
not be limited to short term storage, towing, use of jacks, test equipment,
access to records, and reasonable labor assistance in order to allow Buyer to
conduct proper evaluation of each aircraft.

(D)                               Tools – The
following will be made available in support of Buyer’s operations.

i.                                          Seller will make available for sale to Buyer selected tools
appropriate to the BE1900 at CommutAir’s cost plus freight.

ii.                                       In addition, “CommutAir-designed”tooling will also be offered
to Buyer at a reasonable cost plus freight.

(E)                                 Emergency Equipment –
Seller will provide all currently installed emergency equipment required for
FAR 121 operations.

(F)                                 Maintenance and Inspection Program Manuals.  Seller will provide
to Buyer a complete copy of Seller’s Maintenance and Inspection Program
Manuals.

ARTICLE 8: MISCELLANEOUS 

8.1                                 Governing Law
and Forum Choice. This Agreement was made and entered into in the
State of New York, and the law governing this transaction shall be that of the
State of New York as it may from time to time exist (without giving effect to
its conflict of law principles). The law of the State of New York shall apply
to any and all matters arising from or related to this Agreement and
transaction. The parties agree that any legal proceeding based upon the
provisions of this Agreement or breach thereof shall be brought exclusively in
either the United States District Court for the Northern District of New York
at Syracuse, New York, or in the New York Supreme Court, Onondaga County in
Syracuse, New York to the exclusion of all other courts and tribunals. The
parties hereby consent and agree to be subject to the jurisdiction of the
aforesaid courts in such proceedings.

8.2                                 Amendments. The parties
may mutually agree to amend or modify the terms and conditions of this
Agreement. It is expressly agreed, however, that no amendment or modification
to this Agreement shall be binding upon either party unless it is reduced to
writing and duly executed by both parties in the same manner as the original
execution of this Agreement.

8.3                                 Brokerage. Neither
Seller nor Buyer have dealt with, or are obligated to make payment to, any
finder, broker, dealer or agent in connection with the transactions
contemplated by this

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 7
 

Agreement
or the negotiations leading to the execution and delivery of this Agreement.

8.4                                 Entire
Agreement; Counterparts. This Agreement contains the entire
agreement of the parties and supersedes and merges any and all prior agreements
between the parties, written or oral, with respect to the transactions hereby
contemplated. This Agreement may be executed in counterparts, each of which
shall constitute an original, but all of which when taken together shall
constitute a single contract. Delivery of an executed signature page to this
Agreement by facsimile transmission shall be as effective as delivery of a
manually executed counterpart of this Agreement.

8.5                                 Assignment to
Designee of Buyer. Subject to the conditions set forth below, Buyer
may assign to a designee of Buyer its rights to acquire the Aircraft pursuant
to this Agreement, provided, however (i) no such assignment shall be deemed
effective without the prior written consent of Seller, (ii) notwithstanding
such assignment, Buyer shall remain liable for all of Buyer’s duties and
obligations pursuant to the terms of this Agreement, and (iii) Buyer shall be
responsible solely for all costs and expenses associated with, or arising from,
such assignment.

8.6                                 Mutual
Representations. Each party to this Agreement represents and
warrants to the other as follows: (i) it is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization,
(ii) it has the power and authority to execute and deliver this Agreement and
all other documents associated with the transactions contemplated in this
Agreement (the “Transaction Documents”), and to perform pursuant to the terms
thereof, (iii) all requisite action on its part (including action by its
officers, directors or shareholders) necessary for the authorization of the
Transaction Documents and the performance of its obligations under the
Transaction Documents has been taken, (iv) the undersigned officer or officers
of such party have all requisite power and authority to execute and deliver the
Transaction Documents on behalf of such party, (v) the Transaction Documents,
when executed and delivered, will constitute valid and binding obligations
enforceable against it in accordance with their terms.

8.7                                 Patriot Act. Buyer
certifies that it has not been designated, nor is it or shall it be owned or
controlled, by a “suspected terrorist” as defined in Executive Order 13224. The
Buyer hereby acknowledges that Seller has informed Buyer that it seeks to
comply with all applicable laws concerning money laundering and related
activities. In furtherance of those efforts, the Buyer hereby represents,
warrants and covenants that: (i) none of the cash or property that Buyer or any
party providing financing to Buyer will pay or will contribute to Seller has
been or shall be derived from, or related to, any activity that is deemed
criminal under United States law; and (ii) no contribution or payment by Buyer
or any party providing financing to Buyer to Seller shall cause Seller to be in
violation of the United States Bank Secrecy Act, the United States
International Money Laundering Control Act of 1986 or the United States International
Money Laundering Abatement and Anti-Terrorist Financing Act of 2001. The Buyer
shall promptly notify Seller if any of these representations, warranties and
covenants ceases to be true.

8.8                               Notices.
All notices, requests, demands, amendments, modifications or other
communications under this Agreement shall be in writing. Notice shall be
sufficient for all such purposes if personally delivered, delivered by courier
with receipt of delivery, facsimile

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 8
 

transmitted with
written confirmation of receipt by recipient, or e-mailed with verifiable and
unmodifiable proof of content and time and date of sending by sender and
delivery to recipient. Notice is effective on delivery. Any notice given by
facsimile transmission or e-mail shall be deemed received on the next business
day if it is received after 5:00 p.m. (recipient’s time) or on a non-business
day.  All notices, requests, demands,
amendments, modifications, or other communications under this Agreement shall
be sent to the addresses listed below:

If to
Seller:

Champlain Enterprises, Inc.

Attn:  Joel
Raymond, Vice President

518 Rugar Street

Plattsburgh, New York 12901

Facsimile: 
(518) 562-8030

E-mail:  jraymond@commutair.com

With a copy to:

Joseph Zagraniczny, Esq.

Bond, Schoeneck & King, PLLC

One Lincoln Center

Syracuse, New York 
13202-1355

Facsimile: 
(315) 218-8100

E-mail: zagranj@bsk.com

If to Buyer:

Big Sky Transportation Co.

Attn:  Fred
deLeeuw, President

1601 Aviation Place

Billings, MT 
59105

Facsimile: 
(406) 247-3972

E-mail:  fred.deleeuw@bigskyair.com

With a copy to:

MAIR Holdings, Inc.

Attn:  General
Counsel

150 South 5th Street

Suite 1360

Minneapolis, MN 
55402

Facsimile:  (612) 333-0590

Any party may
change its address or facsimile number or e-mail address by giving the other party
notice of the change in any manner permitted by this Agreement.

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 9
 

8.9  Counterparts.  This Agreement may be executed in any number
of counterparts and any party hereto may execute any such counterpart, each of
which when executed and delivered shall be deemed to be an original and all of
which counterparts taken together shall constitute but one and the same
instrument.  The execution of this
Agreement by any party hereto will not become effective until counterparts
hereof have been executed by all of the parties hereto.  In order to facilitate execution of this
Agreement, fax signatures and pdf signatures shall be deemed to be original
signatures.

IN WITNESS OF the mutual promises, covenants and agreements set forth
herein, the parties have caused their duly authorized officers to execute this
Agreement on the date first written above.

CHAMPLAIN
ENTERPRISES, INC.

 

	
  By: 

  	
  /s/ Joel Raymond

  	
   

  
	
   

  
	
  Name:

  	
  Joel Raymond

  	
   

  
	
  Title:

  	
  Vice President,
  Marketing

  	
   

  
							

 

 

BIG SKY TRANSPORTATION CO.

 

	
  By: 

  	
  /s/ Fred deLeeuw

  	
   

  
	
   

  
	
  Name:

  	
  Fred deLeeuw

  	
   

  
	
  Title:

  	
  President

  	
   

  
						

 

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 10

Schedule A

	
  Serial #

  	
   

  	
  Registration #

  	
   

  	
  Engine #

  
	
  UE-405

  	
   

  	
  N856CA

  	
   

  	
  PS0387  PS0385

  
	
  UE-396

  	
   

  	
  N838CA

  	
   

  	
  PS0458  PS0407

  
	
  UE-401

  	
   

  	
  N840CA

  	
   

  	
  PS0409  PS0406

  
	
  UE-399

  	
   

  	
  N854CA

  	
   

  	
  PS0390  PS0434

  
	
  UE-400

  	
   

  	
  N835CA

  	
   

  	
  PS0415  PS0416

  
	
  UE397

  	
   

  	
  N837CA

  	
   

  	
  PS0408  PS0391

  
	
  UE-403

  	
   

  	
  N857CA

  	
   

  	
  PS0395  PS0394

  
	
  UE-402

  	
   

  	
  N842CA

  	
   

  	
  PS0402  PS0403

  

 

*** Denotes portions omitted pursuant to a request for confidentiality
under Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 A-1

Schedule B

	
  Serial #

  	
   

  	
  Registration #

  	
   

  	
  Engine #

  	
   

  	
  Option #

  
	
  UE-406

  	
   

  	
  N832CA

  	
   

  	
  PS0386  PS0393

  	
   

  	
  1

  
	
  UE-407

  	
   

  	
  N836CA

  	
   

  	
  PS0399  PS0398

  	
   

  	
  2

  
	
  UE-408

  	
   

  	
  N858CA

  	
   

  	
  PS0396  PS0397

  	
   

  	
  3

  
	
  UE-410

  	
   

  	
  N844CA

  	
   

  	
  PS0405  PS0404

  	
   

  	
  4

  

 

*** Denotes
portions omitted pursuant to a request for confidentiality under
Rule 24b-2 of the Securities Exchange Act of 1934. A copy of this
agreement with the omitted information intact has been filed separately with
the Securities and Exchange Commission.

 B-1

Schedule C

Delivery and
Closing Date

	
  Aircraft

  	
   

  	
  Delivery Date

  as soon as possible, but in no event later 

  than

  
	
  1

  	
   

  	
  April 17, 2007*

  
	
  2

  	
   

  	
  July 2, 2007

  
	
  3

  	
   

  	
  August 6, 2007

  
	
  4

  	
   

  	
  September 3,
  2007

  
	
  5

  	
   

  	
  October 1, 2007

  
	
  6

  	
   

  	
  November 5, 2007

  
	
  7

  	
   

  	
  December 3, 2007

  
	
  8

  	
   

  	
  January 1, 2008

  

 

* Assumes Seller is fully released of ***
by April 1, 2007.   Seller shall have no
obligation to deliver the first Aircraft to Buyer until Seller is released of ***.  Such release has
no effect upon the delivery dates of the other seven Aircraft.

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 C-1

Exhibit A

ESCROW AGREEMENT

This Escrow
Agreement (this “Agreement”) is made and entered into as of the     
day of March, 2007 by and among CHAMPLAIN ENTERPRISES, INC. d/b/a CommutAir, a
corporation organized under the laws of the State of New York with an address
at 518 Rugar Street, Plattsburgh, New York 12901 (“Seller”), BIG SKY
TRANSPORTATION CO. d/b/a Big Sky Airlines, a corporation organized under the
laws of the State of Montana, with an address at 1601 Aviation Place, Billings
Montana 59105 (“Buyer”) and DAUGHERTY, FOWLER, PEREGRIN, HAUGHT & JENSON,
204 North Robinson Avenue, Suite 900, Oklahoma City, Oklahoma 73102 (“Escrow
Agent”).

RECITALS

A.                                 Seller is the
owner of eight (8) used Beechcraft Model 1900D Airliner aircraft, each together
with two Pratt & Whitney PT6A-67D engines, two Hartzell HC-E4A-3J
propellers, avionics, parts, components, and equipment installed thereon listed
on Schedule A attached to and incorporated into this Agreement (collectively
referred to as the “Aircraft”).

B.                                   On or about
March 8, 2007, Seller and Buyer executed a used Beechcraft 1900D Airliner
Purchase Agreement, dated as of March 8, 2007 (the “Purchase Agreement”) under
which Seller agreed to sell to Buyer and Buyer agreed to buy from Seller the
Aircraft on the closing dates listed on Schedule B attached to and incorporated
into this Agreement (the “Closing Dates”). 
While the Closing Date with respect to the first Aircraft is subject to
Seller obtaining ***, the Closing Dates of the
other seven aircraft are not contingent upon Seller ***.

C.
                                  The purpose of
this Agreement is to set forth the terms and conditions under which the Escrow
Agent is to hold and disburse the Purchase Proceeds, as that term is defined in
Section 2 of this Purchase Agreement.

AGREEMENT

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

1.                                       Purchase
Price.  Pursuant to the Purchase
Agreement, Buyer agrees to pay Seller the purchase price for each aircraft in
the amount of $***, in sum total for all of the
Aircraft in the amount of $*** (hereafter
referred to as the “Purchase Price”).

(a)                                  Downpayment.
Seller hereby acknowledges receipt of $*** (the
“Downpayment”).

(b)                                 Remaining
Purchase Price.  Prior to the Closing
of each of the eight Aircraft,  Buyer
shall pay to the Escrow Agent $***.

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 A-1
 

2.                                       Seller’s
Closing Deliverables.  Subject to the
satisfaction of the conditions in the Purchase Agreement, on or before each
Closing Date, Seller shall deliver to the Escrow Agent the following items
(“Seller’s Closing Deliverables”):

(i)                                     original
fully executed long form Bill of Sale for the specific Aircraft being conveyed;

(ii)                                  an
original FAA Form Bill of Sale for the specific Aircraft being conveyed;

(iii)                               an
original executed release of the security interest from Laurus Master Fund,
Ltd. which is a lien on the specific Aircraft being conveyed.

The items listed
in Section 2(ii) and (iii) shall be hereafter referred to as the “FAA
Documents.”

3.                                       Buyer’s
Closing Deliverables.   On or before
each Closing Date, Buyer shall deliver the following items to the Escrow Agent:

(i)                                     $*** for each Aircraft being conveyed (the “Escrow Funds”);

(ii)                                  an
original executed Certificate of Final Acceptance and Delivery as set forth in
the Purchase Agreement;

(iii)                               an
original executed New York State Sales Tax Exemption Certificate;

(iv)                              such
other documents as may be reasonably required by Seller to consummate the
transactions contemplated in the Purchase Agreement.

3.                                       FAA
Filing.  Upon oral notice on a
closing call from Buyer and Seller that all conditions precedent to the closing
of the transactions contemplated by the Agreement have been satisfied
(collectively, the “Closing Notice”), the Escrow Agent shall direct the Escrow
Agent Bank to disburse the Escrow Funds as set forth in paragraph 4.  Upon receipt of a federal reference number
from the Escrow Agent Bank, the Escrow Agent shall date and file with the FAA
the FAA Closing Documents together with an appropriate transmittal letter and
its check to the FAA for the required filing fee.

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 A-2
 

The Escrow Agent Bank and its wiring instructions are
as follows:

Wells Fargo Bank

299 South Main Street, 12th Floor

Salt Lake City, UT

ABA: 121-000-248

Account No.: ***

Acct. Name: Corporate
Trust Services

RE:
DFPHJ Funding Account

Reference
File No.:                    ;
N          

4.                                       Disbursement
of Escrow Funds.  Upon receipt of the
Closing Notice and confirmation that the Aircraft records at the FAA are free
and clear of liens and encumbrances of record as set forth in the Escrow
Agent’s draft of opinion, assuming that the same occurs during normal banking
hours, the Escrow Agent shall direct on that same day the Escrow Agent Bank to
disburse by wire transfer the Escrow Funds together with all interest earned
thereon as follows:

(a)                                  the
amount of *** U.S. Dollars ($***U.S.)
for each Aircraft to be conveyed on the Closing Date to:

Wire Instructions:

Mellon Bank

Pittsburgh, PA

ABA #043000261

Credit Merrill Lynch

Acct. No. ***

Further Credit –
Champlain Enterprises, Inc.

Account No. ***

It
is understood by the parties hereto that if the Closing Notice occurs after 3:00
p.m., EST on a banking business day, the Escrow Funds may not, because of the
close of the Federal wire for that day, be forwarded until the next banking
business day.  In that event, the FAA
Closing Documents will not be filed until the next day upon the receipt of a
reference number from the Escrow Agent Bank.

The
Escrow Agent shall forward to the Buyer:

(i)                                     the
original executed long form Bill of Sale.

(ii)                                  copies
of all other Seller’s Deliverables and Buyer’s Deliverables.

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 A-3
 

The
Escrow Agent shall forward to the Seller:

(i)                                     original
executed Certificate of Final Acceptance and Delivery.

(ii)                                  copies
of all other Seller’s Deliverables and Buyer’s Deliverables.

5.                                       Termination
of Escrow for Specific Aircraft.  In
the event that Seller has delivered to the Escrow Agent Seller’s Deliverables,
and the Aircraft satisfies the delivery conditions set forth in Section 3.2 of
the Purchase Agreement and the Buyer thereafter fails to consummate the
transactions contemplated by the Purchase Agreement, and such failure by Buyer
continues through the Closing Date, as the Closing Date may be extended by
mutual agreement by both parties in writing, within three business days
following the Closing Date, Seller shall execute a notice to the Buyer and
Escrow Agent under which Seller will notify Buyer of its default under the
Purchase Agreement and direct the Escrow Agent to return Seller’s Deliverables
to Seller.  Seller shall reserve all of
its rights against Buyer under the Purchase Agreement in the event of Buyer’s
default.

6.                                       Limitation
of Escrow Agent’s Liability.  The
Escrow Agent shall not be liable for any action taken or omitted to be taken by
it while acting in good faith and in the exercise of its best judgment, under
this Escrow Agreement or any instrument executed pursuant hereto, or in
connection herewith or therewith, except for its own willful, criminal
misconduct or gross negligence, nor be responsible for the effectiveness,
enforceability, validity or due execution of this Escrow Agreement or any
instrument executed pursuant hereto including, without limitation, the Escrow
Documents, as to the parties to this Escrow Agreement and any third
parties.  The Escrow Agent shall be
entitled to rely upon advice of counsel concerning legal matters and upon any
notice, consent, certificate, statement or writing which it believes to be
genuine and to have been presented by a proper person.  In the event of any disagreement between any
of the parties to this Escrow Agreement, or between them or any of them and any
other person, resulting in divergent or adverse claims or demands being made in
connection with the subject matter of this Escrow Agreement, or in the event
the Escrow Agent, in good faith, is in doubt as to what action should be taken
hereunder, the Escrow Agent may, at its option, refuse to comply with any
claims or demands on it, or refuse to take any other action hereunder so long
as such disagreement continues or such doubt exists, and in any such event, the
Escrow Agent shall not be or become liable in any way or to any person for its
good faith failure or refusal to act, the Escrow Agent shall be entitled to
continue to so refrain from acting until (i) the rights of the parties shall
have been fully and finally adjudicated by a court of competent jurisdiction or
(ii) all differences shall have been adjusted and all doubt resolved by
agreement among all of the interested persons and the Escrow Agent shall be
notified thereof in writing signed by all such persons.  Further, in the event of any such dispute or
controversy, the Escrow Agent may, if, in its sole discretion, it deems
appropriate, institute a declaratory judgment or other appropriate legal action
in any court of competent jurisdiction to determine the rights of the parties
involved.  Should action be instituted,
or should the Escrow Agent become involved in litigation in any manner
whatsoever on account of this Escrow Agreement or the FAA Closing Documents or
the Escrow Funds, Seller and Buyer, jointly and severally, hereby bind and
obligate themselves, their heirs, personal representatives, successors and
assigns to pay Escrow Agent the

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 

 A-4
 

reasonable
attorneys’ fees incurred by Escrow Agent to retain legal counsel, as well as
any other disbursements, expenses, losses, costs or damages in connection with
or resulting from such litigation, except such as may have been caused by the
gross negligence or misconduct of the Escrow Agent.  The rights of the Escrow Agent under this
Section 7 are cumulative of all other rights which it may have by law or
otherwise.

7.                                       Governing
Law.  This Escrow Agreement is to be
governed by and construed under the laws of the State of Oklahoma.

8.                                       Invalidity.  In the event that any one or more of the
provisions of this Escrow Agreement shall for any reason be held to be invalid,
illegal or unenforceable, the remaining provisions of this Escrow Agreement
shall be unimpaired and the invalid, illegal or unenforceable provision shall
be deleted.

9.                                       Notices.  All notices required to be given hereunder
shall be deemed adequately given if (i) delivered by hand; (ii) sent
by reliable overnight delivery services; (iii) transmitted by facsimile;
or (iv) transmitted by e-mail, at its address, facsimile number or e-mail
address set forth below, or such other address, facsimile number or e-mail
address as such addressee may have designated in writing:

	
  To Seller:

  	
   

  	
  Champlain Enterprises, Inc.

  
	
   

  	
   

  	
  518 Rugar Street

  
	
   

  	
   

  	
  Plattsburgh, New York 12901

  
	
   

  	
   

  	
  Attention: Joel Raymond

  
	
   

  	
   

  	
  Telephone: 518.562.2700 (Ext. 185)

  
	
   

  	
   

  	
  Facsimile Number: 518.562.8030

  
	
   

  	
   

  	
  E-mail Address: jraymond@commutair.com

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With copy to: Bond, Schoeneck & King PLLC

  
	
   

  	
   

  	
  One Lincoln Center

  
	
   

  	
   

  	
  Syracuse, New York 13202

  
	
   

  	
   

  	
  Attention: Joseph Zagraniczny, Esq.

  
	
   

  	
   

  	
  Telephone: 315.218.8000

  
	
   

  	
   

  	
  Facsimile: 315.218.8100

  
	
   

  	
   

  	
  E-mail Address: jzagranj@bsk.com

  
	
   

  	
   

  	
   

  
	
  To Buyer:

  	
   

  	
  Big Sky Transportation Co.

  
	
   

  	
   

  	
  Attn: Fred deLeeuw

  
	
   

  	
   

  	
  Billings Logan International Airport

  
	
   

  	
   

  	
  1601 Aviation Place

  
	
   

  	
   

  	
  Billings, Montana 59105

  
	
   

  	
   

  	
  Facsimile: 406.247.3972

  
	
   

  	
   

  	
   

  
	
  To Escrow Agent:

  	
   

  	
  Daugherty, Fowler, Peregrin, Haught & Jenson

  

 

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 A-5
 

 

	
   

  	
  Attention: Robert M. Peregrin, Esq.

  
	
   

  	
  204 North Robinson Avenue, Suite 900

  
	
   

  	
  Oklahoma City, OK 73102

  
	
   

  	
  Facsimile: 405.232.0865

  

 

Notices given
hereunder shall be deemed to have been received (i) in the case of delivery by
hand, upon delivery to the receptionist at the recipient’s address set forth
herein; (ii) in the case of overnight delivery service, on the next Business
Day following delivery to such service; (iii) in the case of facsimile
transmissions, upon confirmation by the sender’s facsimile machine that such
facsimile has been successfully transmitted; and (iv) in the case of e-mail, on
the Business Day such e-mail is sent.

10.                                   Binding
Agreement.  This Escrow Agreement
shall be binding upon and shall inure to the benefit of the parties hereto, their
representatives, successors and assigns.

11.                                 Amendments.  The provisions of this Escrow Agreement may
be modified or amended only by an instrument or instruments in writing signed
by all parties hereto.

12.                                 Counterparts.  This Escrow Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and
the same instrument, and any of the parties hereto may execute this Escrow
Agreement by signing any such counterpart.

13.                                 Integration.  This Escrow Agreement shall constitute the
entire agreement among the parties hereto regarding the subject matter hereof,
superseding all previous proposals, agreements and other written and oral
communications, except as may be provided in any agreement hereafter executed
by the parties specifically referring to this Section and providing that such
document is to be integrated with this Escrow Agreement.

14.                                 Titles.  Titles to the Sections and Subsections
contained in this Escrow Agreement are for convenience only and shall not be deemed
to modify the provisions hereof.

15.                                 Fees
and Costs of Escrow Agent.  Seller
and Buyer shall share equally the fees and costs of the Escrow Agent.

16.                                 Compliance
with Directions of  Buyer and Seller.  Escrow Agent agrees to comply with the
instructions of  Buyer and Seller with
respect to the closing of each Aircraft.

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 

 A-6
 

IN WITNESS
WHEREOF, the parties hereto have executed this Escrow Agreement to be duly
executed and delivered by their officers or representatives thereunder duly
authorized as of the day and year first above written.

 

	
   

  	
  CHAMPLAIN ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BIG SKY TRANSPORTATION CO. d/b/a Big Sky 

  
	
   

  	
  Airlines

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DAUGHERTY, FOWLER, PEREGRIN, HAUGHT &

  JENSON

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
										

 

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 A-7
 

Schedule A 

	
  Serial #

  	
   

  	
  Registration #

  	
   

  	
  Engine #

  
	
  UE-405

  	
   

  	
  N856CA

  	
   

  	
  PSO387  PS0385

  
	
  UE-396

  	
   

  	
  N838CA

  	
   

  	
  PSO458  PS0407

  
	
  UE-401

  	
   

  	
  N840CA

  	
   

  	
  PSO409  PS0406

  
	
  UE-399

  	
   

  	
  N854CA

  	
   

  	
  PSO390  PS0434

  
	
  UE-400

  	
   

  	
  N835CA

  	
   

  	
  PSO415  PS0416

  
	
  UE-397

  	
   

  	
  N837CA

  	
   

  	
  PSO408  PS0391

  
	
  UE-403

  	
   

  	
  N857CA

  	
   

  	
  PSO395  PS0394

  
	
  UE-402

  	
   

  	
  N842CA

  	
   

  	
  PSO402  PS0403

  

 

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 A-8
 

Schedule B

Delivery and Closing Date

	
  Aircraft

  	
   

  	
  Delivery Date

  as soon as possible, but in no event later 

  than

  
	
  1

  	
   

  	
  April 17, 2007*

  
	
  2

  	
   

  	
  July 2, 2007

  
	
  3

  	
   

  	
  August 6, 2007

  
	
  4

  	
   

  	
  September 3,
  2007

  
	
  5

  	
   

  	
  October 1, 2007

  
	
  6

  	
   

  	
  November 5, 2007

  
	
  7

  	
   

  	
  December 3, 2007

  
	
  8

  	
   

  	
  January 1, 2008

  

 

[* Assumes Seller is fully released of ***
by April 1, 2007. ]  Seller shall have no
obligation to deliver the first Aircraft to Buyer until Seller is released of ***.  Such release has
no effect upon the delivery dates of the other eight Aircraft.

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 A-9

Exhibit B

Form of Certificate of Final Acceptance and Delivery

Pursuant
to the Used Beechcraft 1900D Airliner Purchase Agreement between Champlain
Enterprises, Inc. (“Seller”) and Big Sky Transportation Co. d/b/a Big
Sky Airlines (“Buyer”), dated March    , 2007 (“Purchase
Agreement”), the undersigned, who is Buyer’s duly authorized
representative, hereby certifies that the Aircraft described below meets the
delivery requirements set forth in the Purchase Agreement and is hereby
accepted and delivered:

Manufacturer: Raytheon
Aircraft Company Model: Beechcraft 1900D Airliner Manufacturer’s Serial

No.: UE-405 Registration
No.:                 
Engine Make: Pratt & Whitney PT6A-67D 

Engine Serial Numbers: PCE-       
and PCE-         Propeller Make:
Hartzell HC-E4A-3J 

Propeller Serial Numbers:
HJ-      HJ-     

	
  

  	
  BIG-SKY TRANSPORTATION CO. d/b/a

  BIG SKY AIRLINES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Date of Issue:

  	
   

  	
   

  

 

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 B-1

Exhibit C

FORM OF BILL OF SALE

Know all men by these present that Champlain Enterprises, Inc.
(“Seller”), in consideration of the sum of One Dollar ($1.00) U.S., receipt of
which is hereby acknowledged, does hereby grant, bargain, sell and assign to
Big Sky Transportation Co. (“Buyer”) the following described Aircraft and
installed engines (the “Aircraft”): 

	
  Manufacturer:

  	
   

  	
  Raytheon Aircraft Company

  
	
   

  	
   

  	
   

  
	
  Model:

  	
   

  	
  Beechcraft 1900D Airliner

  
	
   

  	
   

  	
   

  
	
  Manufacturer’s Serial No.:

  	
   

  	
  UE-405

  
	
   

  	
   

  	
   

  
	
  Registration No.:

  	
   

  	
  N856CA

  
	
   

  	
   

  	
   

  
	
  Engine Make:

  	
   

  	
  Pratt & Whitney PT6A-67D

  
	
   

  	
   

  	
   

  
	
  Engine Serial Numbers:

  	
   

  	
  PCE-PS      and PCE-PS     

  
	
   

  	
   

  	
   

  
	
  Propeller Make:

  	
   

  	
  Hartzell HC-E4A-3J

  
	
   

  	
   

  	
   

  
	
  Propeller Serial 

  Numbers:

  	
   

  	
  HJ-      HJ-     

  

 

Together with all equipment,
components and accessories installed thereon or used in connection therewith.
To have and to hold said Aircraft unto Buyer, its successors and assigns, for
its and their own use forever.

Seller hereby represents and
warrants to Buyer that at the time of delivery of the Aircraft to Buyer, (i)
Seller shall have legal title to the Aircraft, and (ii) the Aircraft shall be
transferred to Buyer free and clear of any liens, claims, charges or
encumbrances. This Bill of Sale is made and delivered pursuant to the provisions
of that certain Used Beechcraft 1900D Airliner Purchase Agreement between
Seller and Buyer dated March     , 2007.

IN WITNESS WHEREOF, Seller
has caused this instrument to be executed and delivered this    
day of              ,
2007.

CHAMPLAIN ENTERPRISES, INC.

By:
Name: Title:

*** Denotes portions omitted pursuant to a request for
confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934. A copy
of this agreement with the omitted information intact has been filed separately
with the Securities and Exchange Commission.

 C-1Exhibit 10.1

MGP INGREDIENTS, INC.

AGREEMENT AS TO AWARD OF RESTRICTED SHARES

GRANTED UNDER THE NON-EMPLOYEE

DIRECTORS’ RESTRICTED STOCK PLAN

	
  Date of Grant: October 13, 2006

  	
   

  	
  Restricted Shares

  
	
  Time of Grant: Close Market

  	
   

  	
   

  

 

In accordance with and subject to the terms and
restrictions set forth in the MGP Ingredients, Inc. Non-Employee Directors’
Restricted Stock Plan (the “Plan”) and this Agreement, MGP INGREDIENTS, INC., a
Kansas corporation (the “Company”), hereby grants to the Director named below (“Participant”)
the number of Restricted Shares of Common Stock of the Company as set forth
below:

Participant: CLOUD
L. CRAY                              

Number of Restricted Shares under the Plan:  
582

NOW, THEREFORE, the Company and the Participant hereby
agree to the following terms and conditions:

1.                                       Issuance
of Restricted Shares.  The shares
described above are being issued by the Company to the Participant as
restricted shares pursuant to the terms and provisions of the Plan, a true copy
of which is attached hereto as Exhibit A and incorporated herein by
reference.  Upon the execution of this
Agreement,  the Company shall issue in
the Participant’s name the aggregate number of restricted shares described above,  subject to the provisions of the Plan
requiring that such certificate or certificates be held in the custody of the
Company.

2.                                       Vesting
in Restricted Shares.  Subject to the
provisions of the Plan, restricted shares shall vest in the Participant upon
the Participant’s completion of three (3) full years of service on the Board of
Directors of the Company (“Vesting Period”) commencing on October 13,
2006.  The restricted shares issued to
the Participant shall be forfeited to the Company if the Participant resigns as
a director during his or her term and prior to the end of the Vesting
Period.  The restricted shares are
subject to accelerated vesting as provided in the Plan.

3.                                       Restriction
on Transfer. The Participant may not sell, assign, transfer, pledge,
hypothecate, or otherwise dispose of any restricted shares to any other person
or entity during the Vesting Period.  Any
disposition or purported disposition made in violation of this paragraph shall
be null and void, and the Company shall not recognize or give effect to such
disposition on its books and records.

4.                                       Legend
on Certificates.  In order that all
potential transferees and others shall be put on notice of this Agreement and
so long as the risk of forfeiture exists under the Plan, each certificate
evidencing ownership of the restricted shares issued pursuant to the Plan (and
any replacements thereto) shall bear a legend in substantially the following
form:

“The shares evidenced by
this Certificate have been issued pursuant to the MGP Ingredients, Inc.
Non-Employee Directors’ Restricted Stock Plan and a related agreement (the “Agreement”)
between the Company and the registered holder. 
The holder’s rights are subject to the restrictions, terms and
conditions of the Plan, which restricts the transfer of the shares and subjects
them to forfeiture to the Company under the circumstances referred to in the
Agreement.  This legend may be removed
when the holder’s rights to the shares vest under the Plan.”

5.             Controlling
Provisions.  The provisions of the
Plan shall apply to the award made under this Agreement.  In the event of a conflict between the
provisions of this Agreement and the Plan, the provisions of the Plan will
control.

IN WITNESS WHEREOF, this Instrument has been executed
as of this 14th day of June, 2007.

	
  

  	
  MGP INGREDIENTS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ LADD
  M. SEABERG

  
	
   

  	
   

  	
  Laidacker M. Seaberg

  
	
   

  	
   

  	
  Chairman of the Board and

  
	
   

  	
   

  	
  Chief Executive Officer

  
				

 

ACKNOWLEDGEMENT

I understand and agree that the Restricted Shares to
be acquired by me are subject to the terms, provisions and conditions hereof
and of the Plan, to all of which I hereby expressly assent.  This Agreement shall be binding upon and
inure to the benefit of the Company, myself, and our respective successors and
legal representatives.

This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof, and may not be
modified, amended, renewed or terminated, nor may any term, condition or breach
of any term or condition be waived, except in writing signed by the parties
sought to be bound thereby.  Any waiver
of any term, condition or breach shall not be a waiver of any term or condition
of the same term or condition for the future or any subsequent breach.  In the event of the invalidity of any part or
provision of this Agreement, such invalidity shall not affect the
enforceability of any other part or provision of this Agreement.

	
  Signed this

  	
  14th

  	
  day of June, 2007.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ CLOUD
  L. CRAY, JR.

  
	
   

  	
   

  	
  Signature of Participant

  
				

 

 2

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