Document:

Exhibit 10.2 CFO Employment Agreement

    Exhibit
      10.2

    
 

    EMPLOYMENT
      AGREEMENT

     

    This
      AGREEMENT (this “Agreement”) is made as of October 1, 2006 (the “Effective
      Date”), by
      and
      between Allion Healthcare, Inc., a corporation with its headquarters located
      at
      1660 Walt Whitman Road, Melville, New York 11747 (the “Employer”), and James G.
      Spencer (the “Executive”). 

     

    WHEREAS,
      the Employer and the Executive desire to enter into an agreement to reflect
      the
      Executive’s duties and responsibilities and to provide for the Executive’s
      employment by the Employer upon the terms and conditions set forth herein;
      and

     

    WHEREAS,
      the Executive has agreed to certain confidentiality, non-competition and
      non-solicitation covenants contained hereunder, in consideration of the
      additional benefits provided to the Executive under this Agreement;

     

    NOW
      THEREFORE, in consideration of the mutual covenants contained in this Agreement,
      and intending to be legally bound, the Employer and the Executive agree as
      follows:

     

    1. Employment.
      The
      Employer agrees to employ the Executive and the Executive agrees to be employed
      by the Employer on the terms and conditions set forth in this
      Agreement.

     

    2. Capacity.
      The
      Executive shall serve the Employer as its Chief Financial Officer. The Executive
      shall also serve the Employer in such other or additional offices as the
      Executive may reasonably be requested to serve by the Board of Directors of
      the
      Company (the “Board of Directors”). In such capacity or capacities, the
      Executive shall perform such services and duties in connection with the
      business, affairs and operations of the Employer, consistent with such
      positions, as may be assigned or delegated to the Executive from time to time
      by
      or under the authority of the Board of Directors.

     

    3. Term.
      Subject
      to the provisions of Section 6, the term of employment pursuant to this
      Agreement (the “Term”) shall commence on the Effective Date and terminate on the
      first anniversary of the Effective Date; provided that the Term shall
      automatically be renewed for successive periods of one (1) year unless either
      party gives written notice to the other party, at least ninety (90) days prior
      to the end date of the then Term, of that party’s intent not to renew this
      Agreement, in which event the Executive’s employment shall terminate at the end
      of the then Term. 

     

    4. Compensation
      and Benefits.
      The
      compensation and benefits payable to the Executive during the Term shall be
      as
      follows:

     

    (a) Salary.
      For all
      services rendered by the Executive under this Agreement, the Employer shall
      pay
      the Executive a salary (“Salary”) at the annual rate of two hundred ninety
      thousand dollars ($290,000.00) per annum, subject to increases from
      time
      to time in the sole discretion of the Compensation Committee of the Board of
      Directors (the
      “Compensation Committee”). Salary shall be payable in periodic installments in
      accordance with the Employer’s usual practice for its senior
      executives.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Bonus.
      The
      Executive may be awarded performance bonuses on an annual basis, commencing
      with
      a bonus that may be awarded for the 2006 calendar year, as determined by the
      Board of Directors or the Compensation Committee in the sole discretion of
      the
      Board of Directors or Compensation Committee, respectively; provided, however,
      that the bonus for any such year shall not exceed forty percent (40%) of Salary
      for such year.

     

    (c)
       Stock
      Options.
      The
      Executive has been issued options to purchase shares of common stock of the
      Employer in accordance with the Employer’s stock option plan and the Executive’s
      stock option agreement thereunder. All options issued to the Executive which
      have not been vested as of the time of any Change in Control occurs shall
      automatically vest upon such occurrence. 

     

    (d) Regular
      Benefits.
      The
      Executive shall also be entitled to participate in any employee benefit plans,
      medical insurance plans, life insurance plans, disability income plans,
      retirement plans, vacation plans, expense reimbursement plans and other benefit
      plans which the Employer may from time to time have in effect for all or most
      of
      its senior executives. Unless and until the Executive relocates his primary
      residence to New York, he shall continue to receive reimbursement for the health
      care plan in which he currently participates in Baltimore. Such participation
      shall be subject to the terms of the applicable plan documents, generally
      applicable policies of the Employer, applicable law and the discretion of the
      Board of Directors, the Compensation Committee or any administrative or other
      committee provided for in or contemplated by any such plan. Nothing contained
      in
      this Agreement shall be construed to create any obligation on the part of the
      Employer to establish any such plan or to maintain the effectiveness of any
      such
      plan which may be in effect from time to time.

     

    (e) Automobile.
      The
      Employer shall provide the Executive with an automobile allowance of $800 per
      month to compensate the Executive for expenses related to the use of an
      automobile and reasonable business-related expenses associated with such
      automobile and its maintenance and operation.

     

    (f) Taxation
      of Payment and Benefits.
      The
      Employer shall undertake to make deductions, withholdings and tax reports with
      respect to payments and benefits under this Agreement to the extent that it
      reasonably and in good faith believes that it is required to make such
      deductions, withholdings and tax reports. Payments under this Agreement shall
      be
      in amounts net of any such deductions or withholdings. Nothing in this Agreement
      shall be construed to require the Employer to make any payments to compensate
      the Executive for any adverse tax effect associated with any payments or
      benefits or for any deduction or withholding from any payment or
      benefit.

     

    (g)
      Place
      of Performance and Relocation Expenses.
      The
      Executive’s main office will be located at the Employer’s main office in
      Melville, New York or at any other location where such offices are moved. The
      Employer will reimburse the Executive for travel and living expenses incurred
      by
      the Executive in traveling from

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    his
      residence in Maryland to Melville, New York or any other location where such
      offices are moved, and while temporarily residing at or near such location
      in
      connection with his employment with the Employer, during the period that the
      Executive maintains a residence in Maryland and for at least two (2) years
      from
      the date of this Agreement. If at any time reimbursement for such expenses
      (whether paid before this Agreement was entered into, or after) is characterized
      by the Internal Revenue Service as compensation to the Executive, the Employer
      shall pay to the Executive an additional amount equal to the tax paid by the
      Executive on such compensation fully grossed up so that the amount retained
      by
      the Executive after payment of taxes on such amount equals the tax imposed
      on
      the reimbursement payments. If the Executive determines to relocate his
      residence at any time while this Agreement is in effect, the Executive will
      be
      reimbursed for his relocation expenses, including but not limited to expenses
      incurred to find a house near the Employer’s main office, sales commissions
      payable to a real estate agent in connection with the sale of the Maryland
      residence, moving expenses and other expenses incurred incidental to the process
      of relocation.

     

    (h) Exclusivity
      of Salary and Benefits.
      The
      Executive shall not be entitled to any payments or benefits other than those
      provided under this Agreement.

    

    5. Extent
      of Service.
      During
      the Term, the Executive shall, subject to the direction and supervision of
      the
      Board of Directors, devote the Executive’s full business time, best efforts and
      business judgment, skill and knowledge to the advancement of the Employer’s
      interests and to the discharge of the Executive’s duties and responsibilities
      under this Agreement. The Executive shall not engage in any other business
      activity, except as may be approved by the Board of Directors; provided that
      nothing in this Agreement shall be construed as preventing the Executive from
      (a) investing the Executive’s assets in any company or other entity in a manner
      not prohibited by Section 8(d), or (b) engaging in religious, charitable or
      other community or non-profit activities that, in the case of (a) or (b) above,
      do not in any way impair the Executive’s ability to fulfill the Executive’s
      duties and responsibilities under this Agreement.

     

    

    6. Termination
      and Termination Benefits.
      Notwithstanding any other provision of this Agreement, (i) the Employer may
      terminate the Executive’s employment hereunder at any time with or without Cause
      (as defined in Section 7(a)) at its election; (ii) the Executive may terminate
      the Executive’s employment hereunder at any time with or without Good Reason (as
      defined in Section 7(b)) at the Executive’s election; (iii) Executive’s
      employment hereunder shall automatically terminate upon the Executive’s death;
      and (iv) the Executive’s employment shall terminate upon the Executive’s
      disability as provided in Section 6(c). The date of termination of the
      Executive’s employment hereunder, whether upon scheduled termination of the then
      Term, termination by either the Employer or the Executive as provided in this
      Agreement, or by reason of the Executive’s death or disability, is the
“Termination Date.” Any termination of employment hereunder shall be effective
      upon the date of scheduled termination of the then Term, the date of receipt
      by
      the non-terminating party of a notice of termination from the terminating party
      with or without Cause (in the case of a termination by the Employer) or with
      or
      without Good Reason (in the case of a termination by the Executive), the date
      of
      death, or after the onset of disability as provided in Section 6(c), as the
      case
      may be; provided that, in the case

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    of
      a
      termination by the Employer, the Employer may specify in the notice of
      termination a later termination date (which date shall be no later than thirty
      (30) days after the date of such notice of termination). The amounts payable
      to
      the Executive and other benefits provided to the Executive under this Section
      6
      shall be referred to as “Termination Benefits”.

     

    (a) Termination
      by the Employer for Cause, by the Executive without Good Reason, Death, or
      notice of nonrenewal by the Executive.
      If the
      Employer terminates the Executive’s employment for Cause, if the Executive
      terminates his employment with the Employer without Good Reason, or if the
      Executive provides the Employer with notice of non-renewal as provided in
      Section 3, the Executive shall be entitled to:

     

    (i) accrued
      but unpaid Salary through the Termination Date;

     

    (ii) cash
      in
      lieu of any accrued but unused vacation through the Termination Date; and

     

    (iii) any
      benefits accrued or payable to the Executive under the Employer’s benefit plans
      (in accordance with the terms of such benefit plans).

     

    Upon
      payment or provision of (i) through (iii) above (collectively, the “Accrued
      Benefits”), the Employer shall have no further obligations to the Executive
      under this Agreement.

     

    (b) Termination
      by the Executive for Good Reason, by the Employer Without Cause, or by notice
      of
      nonrenewal by the Employer.
      If the
      Executive terminates his employment with the Employer for Good Reason or if
      the
      Employer terminates the Executive’s employment with the Employer without Cause,
      or if the Employer terminates the Executive’s employment by reason of having
      delivered a notice of nonrenewal, the Executive shall be entitled
      to:

     

    (i) the
      Accrued Benefits;

     

    (ii) continuation
      of Salary, at the rate in effect on the Termination Date, that would have been
      paid to the Executive, as if there had been no termination described in this
      Section 6(b), through the expiration of the then Term, payable according to
      the
      normal payroll policies of the Employer for senior executives;

     

    (iii)
       $290,000,
      payable in a lump sum within five (5) business days after the Termination
      Date;

     

    (iv) continuation
      of group health plan benefits to the extent authorized by and consistent with
      29
      U.S.C. § 1161 et seq. (commonly known as “COBRA”), with the cost of the regular
      premium for such benefits shared in the same relative proportion by the Employer
      and the Executive as in effect on the Termination Date, provided that the
      Executive’s entitlements under this clause (iv) shall terminate as of the date
      of commencement of eligibility for health insurance pursuant to other employment
      or self-employment; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (v) if
      termination is for Good Reason under Section 7(b)(vii), accelerated vesting
      of
      all options to purchase shares of common stock of the Employer referred to
      in
      Section 4(c).

     

    Notwithstanding
      the foregoing, nothing in this Section 6(b) shall be construed to affect the
      Executive’s right to receive COBRA continuation entirely at the Executive’s own
      cost to the extent that the Executive may continue to be entitled to COBRA
      continuation after the Executive’s right to cost sharing under Section 6(b)(iii)
      ceases. The Executive shall be obligated to give prompt notice of the date
      of
      commencement of any employment or self-employment and shall respond promptly
      to
      any reasonable inquiries concerning any employment or self-employment in which
      the Executive engages during the Termination Benefits Period.

     

    (c) Disability.
      If the
      Executive shall be physically or mentally disabled so as to be unable to perform
      substantially all of the essential functions of the Executive’s then existing
      position or positions under this Agreement with or without reasonable
      accommodation, the Board of Directors may remove the Executive from any
      responsibilities and/or reassign the Executive to another position with the
      Employer for the remainder of the Term or during the period of such disability.
      Notwithstanding any such removal or reassignment, the Executive shall continue
      to be employed by the Employer and continue to receive Salary (less any
      disability pay or sick pay benefits to which the Executive may be entitled
      under
      the Employer’s plans and policies) and other compensation and benefits under
      Section 4 of this Agreement (except to the extent that the Executive may be
      ineligible for one or more such benefits under applicable plan terms) until
      the
      earlier of (i) the date that is six (6) months after the onset of the disability
      and (ii) the termination of the then Term, at which time this Agreement shall
      terminate and the Executive shall be entitled only to those Termination Benefits
      set forth in Section 6(a). If any question shall arise as to whether during
      any
      period the Executive is disabled so as to be unable to perform substantially
      all
      of the essential functions of the Executive’s then existing position or
      positions with or without reasonable accommodation, the Executive may, and
      at
      the request of the Employer shall, submit to the Employer a certification in
      reasonable detail by a physician selected by the Employer to whom the Executive
      or the Executive’s guardian has no reasonable objection as to whether the
      Executive is so disabled or how long such disability is expected to continue,
      and such certification shall for the purposes of this Agreement be conclusive
      of
      the issue. The Executive shall cooperate with any reasonable request of the
      physician in connection with such certification. If such question shall arise
      and the Executive shall fail to submit such certification, the Employer’s
      determination of such issue shall be binding on the Executive. Nothing in this
      Section 6(c) shall be construed to waive the Executive’s rights, if any, under
      existing law including, without limitation, the Family and Medical Leave Act
      of
      1993, 29 U.S.C. §2601 et
      seq. and
      the
      Americans with Disabilities Act, 42 U.S.C. §12101 et
      seq.

     

     

    7. Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      meanings:

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (a) “Cause”
      shall mean (i) the failure of the Executive to perform the Executive’s duties
      for the Employer in accordance with Section 2 above, including without
      limitation, the Executive’s failure to follow the directives of the Board of
      Directors, consistent with Section 2, or any other material breach by the
      Executive of this Agreement, provided that the Employer gives notice of such
      breach to the Executive in writing and such breach remains uncured for thirty
      (30) days following the date such notice is given; (ii) the Executive’s breach
      of any obligation of the Executive under Section 8; (iii) any act by the
      Executive of fraud or theft; (iv) a conviction by a court of competent
      jurisdiction that the Executive is guilty of a felony, or a misdemeanor
      involving moral turpitude, deceit, dishonesty or fraud, or a plea of nolo
      contendere thereto; or (v) engaging in reckless behavior (the failure to use
      even the slightest amount of care) or willful misconduct by the Executive with
      respect to the Employer or its business or assets that has had or is reasonably
      likely to have a material adverse effect on the Employer or its business or
      assets. No act or omission by the Executive reasonably believed to be in or
      not
      adverse to the interests of the Employer shall constitute Cause. For purposes
      of
      this Agreement, the Executive shall not be deemed to have been terminated for
      Cause unless and until there shall has been delivered to the Executive a copy
      of
      a resolution, duly adopted by the Board of Directors, stating that, in the
      good
      faith opinion of the Board of Directors, Cause exists and specifying the
      particulars thereof in reasonable detail. Before adopting any such resolution,
      the Board of Directors shall offer the Executive, upon reasonable prior written
      notice (which need not exceed five business days), an opportunity for him,
      together with his counsel, to be heard by the Board of Directors.

     

    (b) “Good
      Reason” shall mean the occurrence of any of the events described below that
      continues for, and for which the Employer has not cured within, thirty (30)
      days
      after written notice thereof to the Employer from the Executive:

    

    (i) Any
      material or significant adverse change in the nature or scope of the
      authorities, powers, functions, responsibilities or duties of the
      Executive;

    

    (ii) Any
      reduction in the amount of the Executive’s compensation or benefits as set forth
      in Section 4 of this Agreement;

    

    (iii) Any
      material loss of title or office;

    

    (iv) Any
      material breach by the Employer or their successors of any other provision
      of
      this Agreement;

    

    (v) The
      relocation of the offices at which the Executive is principally employed as
      of
      the Effective Date to a location not in Nassau or Suffolk counties, which
      relocation is not approved by the Executive;

    

    (vi) The
      failure to permit the Executive to adopt or implement procedures or policies
      required or advisable for legal or regulatory reasons,

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    other
      interference with the Executive’s compliance with legal obligations;
      or

    

    (vii) A
      Change
      in Control (as defined in Section 4(c) below), provided that the Executive
      has
      given the Employer notice of his termination for Good Reason within thirty
      (30)
      days after such Change in Control.

    

    (c) “Change
      in Control” shall mean the occurrence of one or more of the following
      events:

     

    (i) any
      “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”)) becomes a “beneficial
      owner” (as such term is defined in Rule 13d-3 promulgated under the Exchange
      Act) (other than the Employer, any trustee or other fiduciary holding securities
      under an employee benefit plan of the Employer, or any corporation owned,
      directly or indirectly, by the stockholders of the Employer, in substantially
      the same proportions as their ownership of stock of the Employer), directly
      or
      indirectly, of securities of the Employer, representing fifty percent (50%)
      or
      more of the combined voting power of the Employer’s then outstanding securities;
      or

     

    (ii) persons
      who, as of the Effective Date, constituted the Employer’s Board of Directors
      (the “Incumbent Board”) cease for any reason including, without limitation, as a
      result of a tender offer, proxy contest, merger or similar transaction, to
      constitute at least a majority of the Board of Directors, provided that any
      person becoming a director of the Employer subsequent to the Effective Date
      whose election was approved by at least a majority of the directors then
      comprising the Incumbent Board shall, for purposes of this Section 7(c), be
      considered a member of the Incumbent Board; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii) the
      stockholders of the Employer approve a merger or consolidation of the Employer
      with any other corporation or other entity, other than (1) a merger or
      consolidation which would result in the voting securities of the Employer
      outstanding immediately prior thereto continuing to represent (either by
      remaining outstanding or by being converted into voting securities of the
      surviving entity) more than fifty percent (50%) of the combined voting power
      of
      the voting securities of the Employer or such surviving entity outstanding
      immediately after such merger or consolidation or (2) a merger or consolidation
      effected to implement a recapitalization of the Employer (or similar
      transaction) in which no “person” (as hereinabove defined) acquires more than
      fifty percent (50%) of the combined voting power of the Employer’s then
      outstanding securities; or

     

    (iv) the
      stockholders of the Employer approve a plan of complete liquidation of the
      Employer or an agreement for the sale or disposition by the Employer of all
      or
      substantially all of the Employer’s assets.

     

     

    8. Confidential
      Information, Noncompetition and Cooperation.

     

    (a) Confidential
      Information.
      As used
      in this Agreement, “Confidential Information” means nonpublic (not as a result
      of Executive’s wrongful disclosure) information belonging to the Employer which
      is of value to the Employer in the course of conducting its business and the
      disclosure of which could result in a competitive or other disadvantage to
      the
      Employer. Confidential Information includes, without limitation, financial
      information, reports, and forecasts; inventions, improvements and other
      intellectual property, trade secrets, know-how, designs, processes or formulae,
      software, market or sales information or plans, customer lists; and business
      plans, prospects, strategies and opportunities (such as possible acquisitions
      or
      dispositions of businesses or facilities) which have been discussed or
      considered by the management of the Employer. Confidential Information includes
      information developed by the Executive in the course of the Executive’s
      employment by the Employer, as well as other information to which the Executive
      may have access in connection with the Executive’s employment. Confidential
      Information also includes the confidential information of others with which
      the
      Employer has a business relationship. Notwithstanding the foregoing,
      Confidential Information does not include information in the public domain,
      unless due to breach of the Executive’s duties under Section 8(b).

     

    (b) Confidentiality.
      The
      Executive understands and agrees that the Executive’s employment creates a
      relationship of confidence and trust between the Executive and the Employer
      with
      respect to all Confidential Information. At all times, both during the
      Executive’s employment with the Employer and after its termination, the
      Executive will keep in confidence and trust all such Confidential Information,
      and will not use or disclose any such Confidential Information without the
      written consent of the Employer, except as may be necessary in the ordinary
      course of performing the Executive’s duties to the Employer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) Documents.
      Records. etc.
      All
      documents, records, data, apparatus, equipment and other physical property,
      whether or not pertaining to Confidential Information, which are furnished
      to
      the Executive by the Employer or are produced by the Executive in connection
      with the Executive’s employment will be and remain the sole property of the
      Employer. The Executive will return to the Employer all such materials and
      property as and when requested by the Employer. In any event, the Executive
      will
      return all such materials and property immediately upon termination of the
      Executive’s employment for any reason. The Executive will not retain with the
      Executive any such material or property or any copies thereof after such
      termination.

     

    (d) Noncompetition
      and Nonsolicitation.
      During
      Executive’s employment with the Employer and for one (1) year thereafter, the
      Executive (i) will not, directly or indirectly, whether as owner, partner,
      shareholder, consultant, agent, employee, co-venturer or otherwise, engage,
      participate, assist or invest in any Competing Business (as hereinafter
      defined), (ii) will refrain from directly or indirectly employing, attempting
      to
      employ, recruiting or otherwise soliciting, inducing or influencing any person
      to leave employment with the Employer (other than terminations of employment
      of
      subordinate employees undertaken in the course of the Executive’s employment
      with the Employer); and (iii) will refrain from soliciting or encouraging any
      customer or supplier to terminate or otherwise modify adversely its business
      relationship with the Employer. The Executive understands that the restrictions
      set forth in this Section 8 are intended to protect the Employer’s interest in
      its Confidential Information and established employee, customer and supplier
      relationships and goodwill, and agrees that such restrictions are reasonable
      and
      appropriate for this purpose. For purposes of this Agreement, the term
“Competing Business” shall
      mean a business which consists of operating specialty HIV pharmacies anywhere
      within the United States. Notwithstanding the foregoing, the Executive may
      own
      up to one percent (1%) of the outstanding stock of a publicly-held corporation
      which constitutes or is affiliated with a Competing Business. The Employer
      may
      extend the period of noncompetition and nonsolicitation for an additional period
      not exceeding one (1) year, provided that it extends and pays Termination
      Benefits to the Executive for the duration of the extension. Notwithstanding
      the
      foregoing, the Executive’s obligations under Section 8(d)(i) shall terminate and
      be of no further force or effect upon termination of the Executive’s Employment
      under any of the circumstances described in Section 6(b).

     

    (e) Third-Party
      Agreements and Rights.
      The
      Executive hereby confirms that the Executive is not bound by the terms of any
      agreement with any previous employer or other party which restricts in any
      way
      the Executive’s use or disclosure of information or the Executive’s engagement
      in any business. The Executive represents to the Employer that the Executive’s
      execution of this Agreement, the Executive’s employment with the Employer and
      the performance of the Executive’s proposed duties for the Employer will not
      violate any obligations the Executive may have to any such previous employer
      or
      other party. In the Executive’s work for the Employer, the Executive will not
      disclose or make use of any information in violation of any agreements with
      or
      rights of any such previous employer or other party, and the Executive will
      not
      bring to the premises of the Employer any copies or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    other
      tangible embodiments of non-public information belonging to or obtained from
      any
      such previous employment or other party.

     

    (f) Litigation
      and Regulatory Cooperation.
      During
      and after the Executive’s employment, the Executive shall cooperate fully with
      the Employer in the defense or prosecution of any claims or actions now in
      existence or which may be brought in the future against or on behalf of the
      Employer which relate to events or occurrences that transpired while the
      Executive was employed by the Employer. The Executive’s full cooperation in
      connection with such claims or actions shall include, but not be limited to,
      being available to meet with counsel to prepare for discovery or trial and
      to
      act as a witness on behalf of the Employer at mutually-convenient times. During
      and after the Executive’s employment, the Executive also shall cooperate fully
      with the Employer in connection with any investigation or review of any federal,
      state or local regulatory authority as any such investigation or review relates
      to events or occurrences that transpired while the Executive was employed by
      the
      Employer. The Employer shall reimburse the Executive for any reasonable
      out-of-pocket expenses incurred in connection with the Executive’s performance
      of obligations pursuant to this Section 8(f).

     

    (g) Injunction.
      The
      Executive agrees that it would be difficult to measure any damages caused to
      the
      Employer which might result from any breach by the Executive of the promises
      set
      forth in this Section 8, and that in any event money damages would be an
      inadequate remedy for any such breach. Accordingly, subject to Section 8 of
      this
      Agreement, the Executive agrees that if the Executive breaches, or threatens
      to
      breach, any portion of this Agreement, the Employer shall be entitled, in
      addition to all other remedies that it may have, to an injunction or other
      appropriate equitable relief to restrain any such breach without showing or
      proving any actual damage to the Employer.

    

    (h)
      Definition
      of Employer.
      For
      purposes of this Section 8, “Employer” shall include Allion Healthcare, Inc. and
      each of its subsidiaries.

    

    9. Arbitration
      of Disputes.
      Any
      controversy or claim arising out of or relating to this Agreement or the breach
      thereof or otherwise arising out of the Executive’s employment or the
      termination of that employment (including, without limitation, any claims of
      unlawful employment discrimination whether based on age or otherwise) shall,
      to
      the fullest extent permitted by law, be settled by arbitration under the
      auspices of the American Arbitration Association (“AAA”) in New York, New York
      in accordance with the Employment Arbitration and Mediation Procedures of the
      AAA, including, but not limited to, the rules and procedures applicable to
      the
      selection of arbitrators. In the event that any person or entity other than
      the
      Executive or the Employer may be a party with regard to any such controversy
      or
      claim, such controversy or claim shall be submitted to arbitration subject
      to
      such other person or entity’s agreement. Judgment upon the award rendered by the
      arbitrator may be entered in any court having jurisdiction thereof. This Section
      9 shall be specifically enforceable. Notwithstanding the foregoing, this Section
      9 shall not preclude either party from pursuing a court action for the sole
      purpose of obtaining a temporary restraining order or a preliminary injunction
      in circumstances in which such relief is appropriate; provided that any other
      relief shall be pursued through an arbitration proceeding pursuant to this
      Section 9.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10. Consent
      to Jurisdiction.
      To the
      extent that any court action is permitted consistent with or to enforce Section
      8 of this Agreement, the parties hereby consent to the jurisdiction of the
      Supreme Court of the State of New York, Suffolk County, and the United States
      District Court for the Eastern District of New York. Accordingly, with respect
      to any such court action, the Executive (a) submits to the personal jurisdiction
      of such courts; (b) consents to service of process; and (c) waives any other
      requirement (whether imposed by statute, rule of court, or otherwise) with
      respect to personal jurisdiction or service of process.

     

    11. Integration.
      This
      Agreement constitutes the entire agreement between the parties with respect
      to
      the subject matter hereof and supersedes all prior agreements between the
      parties with respect to any related subject matter.

     

    12. Assignment;
      Successors and Assigns; etc.
      Neither
      the Employer nor the Executive may make any assignment of this Agreement or
      any
      interest herein, by operation of law or otherwise, without the prior written
      consent of the other party; provided that the Employer may assign its rights
      under this Agreement without the consent of the Executive in the event that
      the
      Employer shall effect a reorganization, consolidate with or merge into any
      other
      corporation, partnership, organization or other entity, or transfer all or
      substantially all of its properties or assets to any other corporation,
      partnership, organization or other entity. This Agreement shall inure to the
      benefit of and be binding upon the Employer and the Executive, their respective
      successors, executors, administrators, heirs and permitted assigns.

     

    13. Enforceability.
      If any
      portion or provision of this Agreement (including, without limitation, any
      portion or provision of any section of this Agreement) shall to any extent
      be
      declared illegal or unenforceable by a court of competent jurisdiction, then
      the
      remainder of this Agreement, or the application of such portion or provision
      in
      circumstances other than those as to which it is so declared illegal or
      unenforceable, shall not be affected thereby, and each portion and provision
      of
      this Agreement shall be valid and enforceable to the fullest extent permitted
      by
      law.

     

    14. Waiver.
      No
      waiver of any provision hereof shall be effective unless made in writing and
      signed by the waiving party. The failure of any party to require the performance
      of any term or obligation of this Agreement, or the waiver by any party of
      any
      breach of this Agreement, shall not prevent any subsequent enforcement of such
      term or obligation or be deemed a waiver of any subsequent breach.

     

    15. Notices.
      Any
      notices, requests, demands and other communications provided for by this
      Agreement shall be sufficient if in writing and delivered in person or sent
      by a
      nationally-recognized overnight courier service or by registered or certified
      mail, postage prepaid, return receipt requested, to the Executive at the last
      address the Executive has filed in writing with the Employer or, in the case
      of
      the Employer, at its main offices, attention of the Chairman of the Board of
      Directors, and shall be effective on the date of delivery in person or by
      courier or three (3) days after the date mailed.

     

    16. Amendment.
      This
      Agreement may be amended or modified only by a written instrument signed by
      the
      Executive and by a duly authorized representative of the Employer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    17. Construction.
      This
      Agreement has been drafted and reviewed jointly by the parties, and no
      presumption of construction as to the drafting of this Agreement shall be
      applied against or in favor of any party. 

     

    18. Governing
      Law.
      This is
      a New York contract and shall be construed under and be governed in all respects
      by the laws of the State of New York, without giving effect to the conflict
      of
      laws principles of New York. With respect to any disputes concerning federal
      law, such disputes shall be determined in accordance with the law as it would
      be
      interpreted and applied by the United States Court of Appeals for the Second
      Circuit.

     

    19.
      Indemnification.
      The
      provisions of Article VII (Indemnification) of the Second Amended and Restated
      By Laws dated June 24, 2002 of the Employer as in effect on the date hereof
      are
      deemed incorporated herein by reference and any amendment to such By Laws after
      the date hereof shall not be incorporated by reference herein if the effect
      thereof is to reduce the rights conferred on the Executive. 

    

    20. Legal
      Fees. The
      Employer shall reimburse the Executive for legal fees incurred in connection
      with the preparation of this Agreement in the amount of $4,000. If there is
      an
      arbitration or court proceeding between the Executive and the Employer in
      connection with Executive’s enforcement of the terms of this Agreement and it
      has been determined in such arbitration or proceeding that the Executive has
      substantially prevailed in such arbitration or proceeding, the Employer shall
      reimburse the Executive’s reasonable fees and expenses incurred in connection
      with such arbitration or proceeding in an amount not to exceed
      $100,000.

    

    21.
      Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be taken to be an original; but such counterparts
      shall together constitute one and the same document.

    

    IN
      WITNESS WHEREOF, this Agreement has been executed by the Employer, by its duly
      authorized officer, and by the Executive, as of the Effective Date.

    

    

                     _/s/
      James G.
      Spencer___________   ALLION
      HEALTHCARE, INC.

                James
      G.
      Spencer     

    

            By:
      _/s/ Michael
      P. Moran_____

        Name:
      Michael
      P. Moran

        Title:
      Chief
      Executive OfficerContainer Purchase Agreement 10-4-06

     

    
      

    

     

     EXHIBIT
      10.1

      
        

      

    

    ____________________________________________________________________________________________________________________________________________________________

    
       

      
        CONTAINER
          PURCHASE AGREEMENT

        

        Dated
          as
          of September 27, 2006

        

        

        By
          and
          among 

        

        PLM
          EQUIPMENT GROWTH FUND VI LIQUIDATING TRUST,

        

        PLM
          EQUIPMENT GROWTH & INCOME FUND VII LIQUIDATING TRUST, and

        

        PROFESSIONAL
          LEASE MANAGEMENT INCOME FUND I, L.L.C.,

        a
          Delaware limited liability company,

        

        collectively
          as “Seller”,

        

        

        PLM
          FINANCIAL SERVICES, INC., a Delaware corporation,

        

        

        

        and

        

        CAB
          CONTAINER PARTNERS,

        a
          California general partnership,

        

        as
          “Buyer”

         

        ______________________________________________________________________________

        ______________________________________________________________________________

        

        

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 TABLE
        OF CONTENTS

                                                      

      
        	 	 	 	 Page
	 	 	 	 
	 1.	 	 DEFINITIONS	 1
	 	 	 	 
	 2.	 	 SALE
                AND PURCHASE OF THE CONTAINERS	 2
	 	 	 	 
	 3.	 	 CONSIDERATION FOR
                THE SALE; ADJUSTMENTS TO PURCHASE PRICE; REVENUE
                ALLOCATIONS.	 2
	 	 3.01	 Consideration	 3
	 	 3.02	 Purchase
                Price Adjustment	 3
	 	 3.03	 Allocation
                of Revenues	 3
	 	 	 	 
	 4.	 	 CLOSING	 4
	 	 	 	 
	 5.	 	 REPRESENTATIONS
                AND WARRANTIES OF SELLER	 4
	 	 5.01	 Existence,
                Power and Authority.	 4
	 	 5.02	 Authorization.	 4
	 	 5.03	 No
                Conflict.	 5
	 	 5.04	 Consents.	 5
	 	 5.05	 Legal
                Proceedings.	 5
	 	 5.06	 Lease
                Agreements.	 5
	 	 5.07	 Title.	 5
	 	 5.08	 Compliance
                with Laws and Regulations.	 6
	 	 5.09	 Revenue
                Distributions.	 6
	 	 5.10	 Remarketing
                Arrangements; Bargain-Purchase Options.	 6
	 	 5.11	 Notices.	 6
	 	 5.12	 Full
                Disclosure.	 6
	 	 	 	 
	 6.	 	 REPRESENTATIONS
                AND WARRANTIES OF BUYER.	 6
	 	 6.01	 Existence,
                Power and Authority.	 6
	 	 6.02	 Authorization.	 6
	 	 6.03	 No
                Conflict.	 7
	 	 6.04	 sents.	 7
	 	 6.05	 Legal
                Proceedings.	 7
	 	 6.06	 Compliance
                with Laws and Regulations.	 7
	 	 	 	 
	 7.	 	 COVENANTS.	 7
	 	 7.01	 Closing.	 7
	 	 7.02	  Sales
                Tax.	 7
	 	 	 	 
	 8.	 	 CONDITIONS
                PRECEDENT TO THE OBLIGATION OF BUYER TO CLOSE.	 7
	 	 8.01	 Representations,
                Warranties and Covenants.	 8
	 	 8.02	 No
                Change in Applicable Law.	 8
	 	 8.03	 Delivery
                of Documents	 8
	 	 8.04	 Consents.	 9
	 	 8.05	 Satisfaction
                of Statutory and Regulatory Requirements	 9
	 	 8.06	 No
                Litigation	 9
	 	 	 	 
	 9.	 	 
                CONDITIONS PRECEDENT TO THE OBLIGATION OF SELLER TO
                CLOSE.	 9
	 	 9.01	 Representations,
                Warranties and Covenants	 9
	 	 9.02	 Delivery
                of Funds and Documents.	 9
	 	 9.03	 Satisfaction
                of Statutory and Regulatory Requirements.	 9
	 	 9.04	 No
                Litigation.	 9

      

       

       

      
        
          
          

        

        
          -i-

          
            

          

        

        
          
          

        

      

       

      
        	
                 

                 

              	 	
                 TABLE
                  OF CONTENTS

                      
                  (Continued)

              	 Page
	 	 	 	 
	 10.	 	 DISCLAIMER
                OF WARRANTIES BY SELLER	 10
	 	 	 	 
	 11.	 	 SURVIVAL
                OF REPRESENTATIONS AND WARRANTIES	 10
	 	 	 	 
	 12.	 	 FURTHER
                ASSURANCES; POST-CLOSING NOTICES	 10
	 	 	 	 
	 13.	 	  EXPENSES.	 10
	 	 	 	 
	 14.	 	  BROKERS’
                FEES.	 10
	 	 	 	 
	 15.	 	  NOTICES.	 11
	 	 	 	 
	 16.	 	 WAIVERS
                AND AMENDMENTS; NON-CONTRACTUAL REMEDIES; PRESERVATION OF
                REMEDIES.	 11
	 	 	 	 
	 17.	 	  GOVERNING
                LAW.	 12
	 	 	 	 
	 18.	 	 BINDING
                EFFECT; ASSIGNMENT	 12
	 	 	 	 
	 19.	 	 COUNTERPARTS.	 12
	 	 	 	 
	 20.	 	 SEVERABILITY.	 12
	 	 	 	 
	 21.	 	 INDEMNITIES.	 12
	 	 	 	 
	 22.	 	 HEADINGS;
                TABLE OF CONTENTS	 14
	 	 	 	 
	 	 	 EXHIBITS	 
	 	 	 	 
	 	 	 LIST
                OF CONTAINERS	 A
	 	 	 	 
	 	 	 FORM
                OF BILL OF SALE	 B

      

       

       

      
        
          
          

        

        
          -ii-

          
            

          

        

        
          
          

        

      

    

    

     

    

    CONTAINER
      PURCHASE AGREEMENT

    

    

    This
      CONTAINER PURCHASE AGREEMENT is entered into as of September 27, 2006, by and
      among:

     

    
      	·  	
              PLM
                FINANCIAL SERVICES, INC., a Delaware corporation (“FSI”),
                and 

            

    

     

    
      	·  	
              PLM
                EQUIPMENT GROWTH FUND VI LIQUIDATING TRUST (as successor in interest
                to
                PLM Equipment Growth Fund VI, a California limited partnership),
                PLM
                EQUIPMENT GROWTH & INCOME FUND VII LIQUIDATING TRUST (as successor in
                interest to PLM Equipment Growth & Income Fund VII, a California
                limited partnership), and PROFESSIONAL LEASE MANAGEMENT INCOME FUND
                I,
                L.L.C., a Delaware limited liability company (referred to hereinafter
                individually and collectively as “Seller”),
                and 

            

    

     

    
      	·  	
              CAB
                CONTAINER PARTNERS, a California general partnership (“Buyer”),
                all of the general partners of which are shown on the signature pages
                hereto.

            

    

     

    Recitals

    

    A. Seller
      wishes to sell to Buyer, and Buyer wishes to purchase from Seller, certain
      marine cargo shipping containers owned by Seller as more particularly described
      on Exhibit
      A
      attached
      hereto (the “Containers”),
      all
      upon and subject to the terms and conditions of this Agreement.

     

    B. FSI
      is
      the Trustee of PLM Equipment Growth Fund VI Liquidating Trust and PLM Equipment
      Growth & Income Fund VII Liquidating Trust. FSI is the manager of
      Professional Lease Management Income Fund I, L.L.C. (“PLMI Fund”). PLMI Fund
      intends to transfer all of its assets and liabilities on or about September
      30,
      2006 to a liquidating trust to be known as “Professional Lease Management Income
      Fund I Liquidating Trust” (“PLMI Trust”) of which FSI will be the Trustee.

     

    C. The
      Containers are under lease by third party container lessees under equipment
      leases arranged on behalf of Seller by Cronos Capital Corporation or one of
      its
      affiliates pursuant to the Lease Agreements (as defined herein).

     

    NOW,
      THEREFORE, in consideration of the mutual covenants, agreements, representations
      and warranties herein contained, Seller, FSI, and Buyer agree as
      follows:

     

    1.  Definitions.

     

    For
      all
      purposes of this Agreement, the following terms shall have the following
      meanings:

     

    “Bill
      of Sale”
means
      a
      bill of sale substantially in the form attached hereto as Exhibit
      B.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    “Business
      Day”
means
      any day except a Saturday, Sunday, or other day on which banks in New York
      are
      authorized by law to close.

     

    “Cronos”
means
      Cronos Capital Corp., a California corporation and Cronos Containers Limited,
      an
      English company.

     

    “Closing”
means
      the closing of the sale and purchase of the Containers contemplated by this
      Agreement.

     

    “Closing
      Date”
means
      the date on which the Closing shall occur as fixed pursuant to Section
      4.

     

    “Containers”
means
      each of the cargo containers described on Exhibit A
      hereto,
      together with any and all appliances, parts, instruments, appurtenances,
      accessories and other equipment and components of whatever nature which may
      from
      time to time be incorporated or installed in or attached to any thereof and
      which become the property of the owner thereof under any applicable agreement
      or
      law.

     

    “Cronos
      Guaranties”
means
      each guaranty of The Cronos Group, a Luxembourg corporation described on
Exhibit
      “B”
      attached
      hereto, relating to obligations of Cronos under the Lease
      Agreements.

     

    “Effective
      Date”
means
      October 1, 2006.

     

    “Lease
      Agreements”
means
      each of the Equipment Lease Agreements between Seller (or successor in interest
      to FSI) and Cronos described on Exhibit
      “B”
      attached
      hereto, and each other agreement supplemental thereto, all as relating to the
      utilization of the Containers.

     

    “Net
      Revenues”
means
      all revenues payable to the owner of the Containers periodically in arrears
      based upon the utilization of such Containers (including, without limitation,
      rental cash flows, sales proceeds and casualty proceeds), net of expenses of
      operation and management fees allocated to such Containers, all such revenues
      and expenses to be determined on an accrual basis and not a cash basis of
      accounting.

     

    “Seller”
is
      defined in the preamble to this Agreement, and shall include PLMI Trust if
      prior
      to the Closing PLMI Fund has assigned and transferred to PLMI Trust all of
      PLMI
      Fund’s right, title and interest in and to the Containers theretofor owned by
      PLMI Fund and each Lease Agreement(s) to which it is a party.

     

    2.  Sale
      and Purchase of the Containers.

     

    On
      the
      Closing Date, for the consideration provided in Section 3 and subject to the
      terms and conditions set forth herein, (i) Seller shall sell to Buyer the
      Containers, and shall assign, transfer and convey to Buyer all of its right,
      title and interest relating thereto and under the Lease Agreements from and
      after the Effective Date; and (ii) Buyer shall purchase the Containers from
      Seller and assume all obligations under the Lease Agreements first arising
      from
      and after the Effective Date. 

     

    3.  Consideration for
      the Sale; Adjustments to Purchase Price; Revenue Allocations.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    3.01  Consideration.

     

    In
      consideration for the sale of the Containers as contemplated in Section 2,
      Buyer
      shall, at the Closing, deliver to Seller by wire transfer of immediately
      available funds the sum of $22,311,386.00 (the
      “Purchase
      Price”),
      as
      such sum may be reduced based in the difference between the number of Containers
      reported by Cronos on or about September 30, 2006 (by type and pool) prior
      to
      the Closing, and the number of Containers shown on Exhibit
      “A”
      hereto, plus
      interest on such sum (as may have been so reduced) at the daily rate of 0.019178
      per cent from and including October 1, 2006, and to but not including the
      Closing Date. Any such reduction shall be calculated in the manner described
      in
      Section 3.02. 

     

    3.02  Purchase
      Price Adjustment. 

     

    (a)  The
      parties acknowledge that the stated Purchase Price has been determined based
      on
      an assumption that the portfolio of Containers being purchased hereunder
      consists of (i) a certain number of 20-foot and 40-foot dry van containers
      and
      40-foot high cube containers shown on Exhibit
      “A”
      hereto,
      comprising (as of September 18, 2006) 20,910.7 Container Equivalent Units
      (“CEUs”) assigned an allocated unit price as set forth on Exhibit
      “A”,
      and
      (ii) 423 refrigerated containers assigned allocated unit price as set forth
      on
Exhibit
      “A”.
      Such
      assumption is based upon a report prepared by Cronos prior to Closing as to
      container inventory as of September 18, 2006, and will be updated prior to
      Closing with the report from Cronos on or about September 30, 2006 (referred
      to
      in Section 3.01 above). If the actual number of Containers of any type sold
      by
      Seller to Buyer differs from the number and type of Containers listed on
Exhibit
      “A”
hereto
      (as updated at Closing by the September 30 report), then and in such event
      Seller or Buyer, as the case may be, shall either (i) in case the actual number
      is lower, Seller shall refund the per unit amount of any overpayment of the
      Purchase Price to Buyer within five (5) business days after Buyer and/or Seller
      becomes aware of the shortfall, or (ii) in case the actual number is higher,
      Buyer shall pay the additional purchase price per Container as applicable
      pursuant to Exhibit “A” also within five (5) business days after Buyer and/or
      Seller becomes aware of the overage. Upon the return of any overpayment or
      payment of any shortfall, as called for herein, Seller or Buyer, as the case
      may
      be, shall be entitled to all casualty payments and sale proceeds attributable
      to
      any casualty loss or sale of a Container reported as part of a shortfall or
      overage hereunder. A party shall be deemed aware of a shortfall or overage
      in
      the number of Containers actually purchased hereunder when Cronos provides
      notice(s) thereof

     

    3.03  Allocation
      of Revenues.

     

    (a)  The
      parties further acknowledge that the Purchase Price has been determined based
      on
      an agreement that all Net Revenues of the Containers accrued for the
      quarter-annual periods October 1 through December 31, 2006, are for the
      sole account of Buyer. Accordingly, all Net Revenues accrued for all periods
      prior to October 1,
      2006,
      shall be
      for the account of and belong to Seller, and all Net Revenues accrued for all
      periods commencing on and after October 1, 2006,
      shall be
      for the account of and belong to Buyer.

     

    (b)  Except
      as
      otherwise provided in this Section 3.03, (i) if Seller shall at any time receive
      any distribution, payment or other amount in respect of a Container acquired
      by
      Buyer which has become, or which may become, due and payable with respect to
      any
      period of time commencing on or after October 1, 2006, or which may arise from
      any act, event or circumstance which occurred after that date, then Seller
      agrees to hold such amount in trust for the benefit of the Buyer and promptly
      to
      deliver said amount to Buyer at Closing, if received on or before the Closing,
      or promptly after receipt if received by Seller after the Closing; and (ii)
      if
      Buyer shall receive any distribution, payment or other amount which was due
      and
      payable with respect to any period of time prior to October 1, 2006, then Buyer
      agrees to hold such amount in trust for the benefit of Seller and promptly
      to
      deliver said amount to Seller. If Cronos determines for any period ended prior
      to October 1, 2006, that Seller has received pursuant to the
      Lease
      Agreements an excess distribution or otherwise owes Cronos any amount for any
      period (any such excess or debt being referred to as a “Deficiency”),
      and
      Cronos asserts against or attempts to collect from Buyer any such Deficiency,
      through offset or otherwise, then Seller shall, upon demand by Buyer, pay such
      Deficiency to Cronos or reimburse Buyer if and to the extent such Deficiency
      is
      paid by or assessed against Buyer. Buyer has no obligation to pay any such
      Deficiency, and agrees to notify Seller of any such demand by Cronos prior
      to
      paying the same, if it should elect to do so.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    4.  Closing.

     

    The
      Closing shall take place at the offices of ____________________________, on
      October 2, 2006, or at such other date, time and place as Seller and Buyer
      shall
      mutually agree. Immediately upon the Closing, Seller shall be deemed to have
      delivered the Containers to Buyer and Buyer shall be deemed to have accepted
      the
      Containers from Seller without any further action on the part of Buyer or
      Seller.

     

    5.  Representations
      and Warranties of Seller.

     

    Each
      of
      FSI and Seller represents and warrants to Buyer as follows:

     

    5.01  Existence,
      Power and Authority.

     

    PLMI
      Fund
      is a limited liability company, duly organized and validly existing under the
      laws of Delaware, and has all requisite company authority to enter into this
      Agreement, the Bill of Sale, and to consummate the transactions contemplated
      hereby and thereby. Each of PLM Equipment Growth Fund VI Liquidating Trust
      and
      PLM Equipment Growth & Income Fund VII Liquidating Trust is a trust governed
      under the laws of Delaware, and of which FSI is the sole trustee. FSI is a
      corporation validly existing and in good standing under the laws of California,
      and as the trustee of both PLM Equipment Growth Fund VI Liquidating Trust and
      PLM Equipment Growth & Income Fund VII Liquidating Trust has the power and
      authority to bind each such Seller to this Agreement by execution hereof on
      its
      behalf. IF PLMI Trust is a Seller, then as of the Closing it is a trust formed
      under the laws of Delaware, and FSI as its sole trustee has the authority to
      execute and deliver the Bill of Sale on its behalf, and to consummate the
      transactions contemplated hereby and thereby.

     

    5.02  Authorization.

     

    The
      execution and delivery of this Agreement and the Bill of Sale by Seller, and
      the
      performance by Seller hereunder and thereunder, have been duly authorized by
      all
      requisite trust or corporate action and proceedings of Seller and FSI, and
      in
      accordance with applicable provisions of their organizational documents or
      applicable law. This Agreement has been duly executed and delivered by Seller,
      and this Agreement is, and the Bill of Sale when executed and delivered will
      be,
      the legal, valid and binding obligations of Seller, enforceable against Seller
      in accordance with their respective terms, except as such enforceability may
      be
      limited by applicable bankruptcy, insolvency or similar laws from time to time
      in effect which affect creditors’ rights generally.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    5.03  No
      Conflict.

     

    Neither
      the execution and delivery of this Agreement and the Bill of Sale by Seller,
      nor
      the performance by it hereunder or thereunder, will (i) violate, conflict with
      or constitute a default under any provision of such Seller’s trust agreement or
      other organizational or charter documents, (ii) conflict with or result in
      a
      breach of any indenture or other agreement to which Seller is a party or by
      which it or its properties are bound, (iii) violate any judgment, order,
      injunction, decree or award of any court, administrative agency or governmental
      body against, or binding upon, it or its properties, or (iv) constitute a
      violation by Seller of any law or regulation applicable to it or its properties,
      except in any case where such violation would not have a material adverse affect
      on the financial condition of Seller or its ability to perform its obligations
      under this Agreement.

     

    5.04  Consents.

     

    The
      execution, delivery and performance by Seller of, and the consummation of the
      transactions contemplated by this Agreement and the Bill of Sale do not require
      (i) any approval or notice to or consent of any person, or any holder of any
      indebtedness or obligation of any of Seller or any other party to any agreement
      binding on the Seller, or (ii) any notice to or filing or recording with, or
      any
      consent or approval of, any governmental body.

     

    5.05  Legal
      Proceedings.

     

    There
      are
      no actions, suits or proceedings pending, or to the knowledge of Seller or
      FSI,
      threatened, against Seller or the Containers before any court, arbitrator,
      administrative or governmental body that, if adversely determined, would hinder
      or prevent Seller’s ability to carry out the transactions contemplated by this
      Agreement or the Bill of Sale or affect the right, title or interest of Seller
      in the Containers, and, to their knowledge, there is no basis for any such
      suits
      or proceedings.

     

    5.06  Lease
      Agreements.

     

    Effective
      as of the Closing Date, other than the Lease Agreements, there are no
      agreements, letters, certificates or other documents of any kind, relating
      to
      the Containers created by or through Seller which are binding on Buyer or which
      create a lien, charge, security interest or other encumbrance in or on the
      Containers or any part thereof after the Closing. No event has occurred and
      is
      continuing on the part of Seller which constitutes an event of default by it
      under any of the Lease Agreements, or which would constitute such an event
      with
      the giving of notice or the lapse of time, or both. To the knowledge of Seller,
      no event has occurred and is continuing on the part of Cronos which constitutes
      an event of default by Cronos under any of the Lease Agreements, or which would
      constitute such an event with the giving of notice or the lapse of time, or
      both. As to Seller, each of the Lease Agreements remains in full force and
      effect. To Seller’s knowledge, there are no set-offs, defenses or counterclaims
      available against amounts owed to Seller in respect of the operation of the
      Containers prior to the Effective Date. No prepayment of rent or prepayment
      of
      casualty value under the Lease Agreements has been made by Cronos or any other
      party for any period subsequent to the Effective Date. 

     

    5.07  Title.

     

    Seller
      is
      the lawful and rightful sole owner of the Containers and has good right and
      title to sell the same to Buyer. Seller holds, and on the Closing Date will
      hold, title to its Containers free and clear of all liens, charges, security
      interests, or other encumbrances created by or through Seller other than the
      use
      and possessory interests of Cronos under the Lease Agreements and of lessees
      in
      the ordinary course of business. 
      Seller
      has not previously assigned any rights, title or interests of Seller in the
      Containers to be conveyed to Buyer pursuant hereto.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    5.08  Compliance
      with Laws and Regulations.

     

    The
      sale
      of the Containers by Seller will not violate any provision of any applicable
      laws, orders or regulations.

     

    5.09  Revenue
      Distributions.

     

    Seller
      shall be entitled to all Net Revenues earned (on an accrual basis) as called
      for
      under the Lease Agreements for all periods prior to October 1, 2006. Seller
      has
      not directly or indirectly received any prepayment or distribution of Net
      Revenues or other distributions (including casualty payments) for any period
      on
      or after October 1, 2006.  Seller has no liability under the Lease
      Agreements for any operating deficit balances relating to periods prior to
      the
      Effective Date, and there are no accrued deficits which could be offset against
      Net Revenues allocable to Buyer hereunder.

     

    5.10  Remarketing
      Arrangements; Bargain-Purchase Options.

     

    Except
      as
      expressly provided in each of the Lease Agreements and as shown on Schedule 5.10
      attached
      hereto, the Containers are not subject to any remarketing, residual sharing
      or
      similar agreement which would be binding upon or enforceable against Buyer
      or,
      following the sale of such Containers to Buyer hereunder, against the Containers
      or against the proceeds of any sale, leasing or other disposition of the
      Containers; and neither Cronos nor any other lessee of the Containers has an
      option to purchase any Containers.

     

    5.11  Notices.

     

    Seller
      will immediately provide to Buyer any notice received from Cronos, including
      without limitation notice that any of the Containers has sustained an event
      of
      loss, and any notice received from Cronos or any other party delivered under
      any
      Lease Agreement.

     

    5.12  Full
      Disclosure.

     

    None
      of
      the representations or warranties made by Seller in this Agreement as of the
      date such representations and warranties are made or deemed made, and none
      of
      the statements contained in any exhibit, report, statement or certificate
      furnished by or on behalf of Seller in connection with the Containers (including
      offering and disclosure materials delivered by or on behalf of Seller to
      Purchaser or its representatives prior to the execution of this Agreement,
      contains any untrue statement of a material fact or omits any material fact
      required to be stated therein or necessary to make the statements made therein,
      in light of the circumstances under which they are made, not misleading as
      of
      the time when made or delivered.

     

    6.  Representations
      and Warranties of Buyer.

     

    Buyer
      represents and warrants to Seller, as of the date hereof, as
      follows:

     

    6.01  Existence,
      Power and Authority.

     

    Buyer
      is
      a general partnership duly formed and validly existing under the laws of
      California, and has the power and authority to enter into this Agreement and
      to
      consummate the transactions contemplated hereby and thereby. 

     

    6.02  Authorization.

     

    The
      execution and delivery by Buyer of this Agreement, and the performance by Buyer
      hereunder and thereunder, have been duly authorized by all requisite company
      action and proceedings of Buyer. This Agreement has been duly executed and
      delivered by Buyer, and this Agreement is the legal, valid and binding
      obligation of Buyer, enforceable against Buyer in accordance with its respective
      terms, except as such enforceability may be limited by applicable bankruptcy,
      insolvency or similar laws from time to time in effect which affect creditors’
rights generally. Buyer has, and as of the Closing Date shall have, the
      requisite financial ability or third party financing commitment to enable it
      to
      pay the Purchase Price hereunder.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    6.03  No
      Conflict.

     

    Neither
      the execution and delivery of this Agreement by Buyer, nor the performance
      by
      Buyer hereunder, will (i) violate, conflict with or constitute a default under
      any provision of Buyer’s partnership agreement, (ii) conflict with or result in
      a breach of any indenture or other material agreement to which Buyer is a party
      or by which Buyer or its properties are bound, (iii) violate any judgment,
      order, injunction, decree or award of any court, administrative agency or
      governmental body against, or binding upon, Buyer or its properties, or (iv)
      constitute a violation by Buyer of any law or regulation applicable to Buyer
      or
      its properties.

     

    6.04  Consents.

     

    The
      execution, delivery and performance by Buyer of this Agreement do not require
      (i) the approval or consent of or notice to any person, or any holder of any
      indebtedness or obligation of Buyer or any other party to any agreement binding
      on the Buyer, or (ii) any notice to or filing or recording with, or any consent
      or approval of, any governmental body.

     

    6.05  Legal
      Proceedings.

     

    There
      are
      no actions, suits or proceedings pending, or to the knowledge of Buyer,
      threatened, against Buyer that, if adversely determined, would materially hinder
      or prevent Buyer’s ability to carry out the transactions contemplated by this
      Agreement, and, to their knowledge, there is no basis for any such suits or
      proceedings.

     

    6.06  Compliance
      with Laws and Regulations.

     

    The
      purchase of the Containers by Buyer will not violate any applicable laws, orders
      or regulations.

     

    7.  Covenants.

     

    7.01  Closing.

     

    Each
      of
      the parties shall use all reasonable efforts to fulfill or obtain the
      fulfillment of conditions set forth herein as they relate to such party on
      or
      prior to the Closing.

     

    7.02  Sales
      Tax.

     

    The
      parties acknowledge that the Containers are being transferred by Seller to
      Buyer
      with the intention that they remain leased by Buyer to Cronos for sublease
      to
      third party container lessees for use in interstate and foreign commerce under
      Cronos’ management supervision, and not used by Buyer. Accordingly, it is the
      expectation of the parties that the transfer contemplated by this Agreement
      shall be exempt from state and local sales, use, transfer or similar taxes.
      If,
      however, any such sales, use, transfer or similar tax is imposed by any state
      or
      local authority on the transfer of the Containers as contemplated herein, other
      than taxes based on income of Buyer, Seller shall bear and be responsible for
      the payment of the amount of such tax. Upon receipt of notice of any such tax
      or
      imposition, the party receiving the notice shall promptly provide a copy to
      all
      other parties. Any party may, at its own cost and expense, commence and
      participate in a contest of the validity, applicability or amount of any such
      tax or other imposition.

     

    8.  Conditions
      Precedent to the Obligation of Buyer to Close.

     

    The
      obligation of Buyer to purchase the Containers pursuant to this Agreement is
      subject to the fulfillment on or prior to the Closing of the following
      conditions, any one or more of which may be waived by it; provided,
      however, that,
      to
      the extent that a condition waived would constitute a breach of a provision
      of
      this Agreement, the waiver of such condition shall, in addition, constitute
      a
      waiver of the breach of such provision:

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    8.01  Representations,
      Warranties and Covenants.

     

    The
      representations and warranties of each of FSI and Seller contained in this
      Agreement shall be true in all material respects on and as of the Closing with
      the same force and effect as though made on and as of such Closing. Each of
      FSI
      and Seller shall have performed and complied with all covenants and agreements
      required by this Agreement and the Lease Agreements to be performed or complied
      with by it on or prior to the Closing.

     

    8.02  No
      Change in Applicable Law.

     

    No
      change
      shall have occurred after the date of execution and delivery of this Agreement
      in applicable law or regulations or interpretations thereof by appropriate
      regulatory authorities which, in the opinion of Buyer or its counsel, would
      make
      it illegal for Buyer to perform fully its obligations hereunder.

     

    8.03  Delivery
      of Documents.

     

    The
      following documents shall have been delivered to Buyer:

     

    (a)  A
      report
      from Cronos showing the number of Containers, by pool and type, that are subject
      to the Lease Agreements as of September 30, 2006;

     

    (b)  a
      Bill of
      Sale for the Containers being sold by Seller on the Closing Date (in the form
      of
Exhibit
      “C”
      attached
      hereto), executed by such Seller;

     

    (c)  an
      Assignment and Assumption Agreement with Buyer executed by Seller (in the form
      of Exhibit
      “D”),
      assigning to Buyer Seller’s rights under the Lease Agreements and
      Guaranties;

     

    (d)  an
      Estoppel Agreement executed by Cronos (in the form of Exhibit
      “E”),
      acknowledging and consenting to Seller’s assignment and Buyer’s assumption of
      the Lease Agreements and providing certain representations to Buyer regarding
      the Containers covered thereby;

     

    (e)  a
      Ratification of Guaranties executed by (i) The Cronos Group (in the form of
      Exhibit
      “F”),
      consenting to the assignment of the Cronos Guaranties to Buyer and confirming
      that each of the Cronos Guaranties remains in effect, and (ii) by Seller as
      to
      the Acknowledgement and Release attached thereto;

     

    (f)  if
      prior
      to the Closing Date PLMI Fund has assigned and transferred to PLMI Trust all
      of
      PLMI Fund’s right, title and interest in and to the Containers and each Lease
      Agreement(s) to which it is a party, evidence of such transfer, such as an
      executed bill of sale, assignment and assumption agreement between PLMI Fund,
      as
      assignor, and PLMI Trust, as assignee, together with a complete copy of the
      trust agreement of PLMI Trust; 

     

    (g)  documents
      evidencing the release of any liens, encumbrances and security interests in
      the
      Containers, in form and substance satisfactory to Buyer; and

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (h)  all
      other
      agreements, instruments, certificates and other documents reasonably requested
      by Buyer prior to the Closing Date to effect the transactions contemplated
      by
      this Agreement.

     

    8.04  Consents.

     

    Any
      required consent or approval of Cronos and any other third person to the sale
      and transfer of the Containers to Buyer shall have been obtained, and Buyer
      shall have received evidence satisfactory to it of the same.

     

    8.05  Satisfaction
      of Statutory and Regulatory Requirements.

     

    All
      statutory and other legal requirements for the valid consummation of the
      transactions contemplated by this Agreement shall have been
      fulfilled.

     

    8.06  No
      Litigation.

     

    No
      action
      or proceedings shall have been instituted nor shall any action be threatened
      before any court or governmental agency, nor shall any order, judgment or decree
      have been issued or proposed to be issued by any court or governmental agency,
      at the time of the Closing questioning the validity or legality of this
      Agreement or the transactions contemplated hereby or the ability of the parties
      hereto to consummate the transactions contemplated hereby.

     

    9.  Conditions
      Precedent to the Obligation of Seller to Close.

     

    The
      obligation of Seller to sell its Containers pursuant to this Agreement is
      subject to the fulfillment on or prior to the Closing of the following
      conditions, any one or more of which may be waived by it; provided,
      however,
      that,
      to the extent that a condition waived would constitute a breach of a provision
      of this Agreement, the waiver of such condition shall, in addition, constitute
      a
      waiver of the breach of such provision:

     

    9.01  Representations,
      Warranties and Covenants.

     

    The
      representations and warranties of Buyer contained in the Agreement shall be
      true
      in all material respects on and as of the Closing with the same force and effect
      as though made on and as of such Closing. Buyer shall have performed and
      complied with all covenants and agreements required by this Agreement to be
      performed or complied with by it on or prior to the Closing.

     

    9.02  Delivery
      of Funds and Documents.

     

    The
      Purchase Price required by Section 3.01 (as adjusted based on the inventory
      report from Cronos referred to in Section 8.03 (a) above) shall have been duly
      delivered to FSI for the account of Seller; and Buyer shall have duly executed
      and delivered to FSI a counterpart of the Assignment and Assumption Agreement,
      and all other agreements, instruments, certificates and other documents
      reasonably requested by Seller prior to the Closing Date to effect the
      transactions contemplated by this Agreement.

     

    9.03  Satisfaction
      of Statutory and Regulatory Requirements.

     

    All
      statutory and other legal requirements for the valid consummation of the
      transactions contemplated by the Agreement shall have been
      fulfilled.

     

    9.04  No
      Litigation.

     

    No
      action
      or proceeding shall have been instituted nor shall any governmental action
      be
      threatened before any court or governmental agency, nor shall any order,
      judgment or decree have been issued or proposed to be issued by any court or
      governmental agency, at the time of the Closing questioning the validity or
      legality of this Agreement or the transactions contemplated hereby or the
      ability of the parties hereto to consummate the transactions contemplated
      hereby.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    10.  Disclaimer
      of Warranties by Seller.

     

    EXCEPT
      AS
      EXPRESSLY SET FORTH HEREIN, NEITHER FSI NOR SELLER SHALL BE DEEMED TO HAVE
      MADE
      ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, NOW OR HEREAFTER, AS TO
      THE
      CONDITION, DESIGN, OPERATION, MAINTENANCE, VALUE, MARKETABILITY, MERCHANTABILITY
      OR FITNESS FOR USE OR FOR A PARTICULAR PURPOSE OF ANY OF THE CONTAINERS OR
      AS TO
      THE QUALITY OF THE MATERIAL OR WORKMANSHIP OF ANY OF THE CONTAINERS AND ANY
      IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, DEALING OR USAGE OF THE
      TRADE. Except as expressly set forth herein, each of Seller and FSI disclaims
      any liability to Buyer with respect to the Containers’ condition, including,
      without limitation, any liability in tort or arising from negligence, strict
      liability or for loss or interruption of use, profit or business or other
      consequential injury, and Buyer waives, releases, renounces and disclaims
      expectation of or reliance upon any such warranty or warranties. 

     

    11.  Survival
      of Representations and Warranties.

     

    All
      representations and warranties made herein, and the agreements set forth herein,
      shall survive the Closing.

     

    12.  Further
      Assurances; Post-Closing Notices.

     

    Each
      of
      Seller and Buyer agrees to execute, acknowledge, deliver, file and record,
      or
      cause to be executed, acknowledged, delivered, filed and recorded, such further
      documents or other papers, and to do all such things and acts, as the other
      parties may reasonably request in order to carry out the provisions and purposes
      of this Agreement and the transactions contemplated hereby. Seller shall send
      Buyer, upon its receipt thereof, all payments relating to a period after the
      Effective Date, notices, communications and any other documents with respect
      to
      the Containers which any of them receives subsequent to the Closing Date.
      Without limiting the generality of the foregoing, Seller shall promptly notify
      Buyer of any payment or other default of which it becomes aware with respect
      to
      the collection or payment by Cronos of Net Revenues for the quarter-annual
      period ending September 30, 2006 (whether or not the same first becomes due
      and
      payable after that date).

     

    13.  Expenses.

     

    Each
      party shall bear its expenses incurred in connection with the preparation,
      execution and performance of this Agreement and the transactions contemplated
      hereby, including, without limitation, all fees and expenses of its agents,
      representatives, counsel and accountants. Buyer shall bear all costs associated
      with its own inspection and appraisal of the Containers prior to the Closing.
      Seller shall bear all costs associated with filing and recording any necessary
      termination statements, assignments, releases and terminations described in
      Section 8.03(c) of this Agreement.

     

    14.  Brokers’
      Fees.

     

    Except
      as
      disclosed by a party in writing to the other parties prior to the Closing or
      disclosed herein, each of FSI and Seller (jointly and severally), on the one
      hand, and Buyer, on the other, represents and warrants to the other that neither
      it nor any of its affiliates have incurred any obligation or liability, directly
      or indirectly, for brokerage or finders’ fees or agents’ commissions or like
      payment in connection with this Agreement or the transactions contemplated
      hereby, and hereby indemnifies and each holds the other harmless therefor.
      The
      parties acknowledge that Buyer or certain of its partners have agreed to pay
      a
      transaction fee to Stephen M. Bess in connection with the consummation of this
      transaction.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    15.  Notices.

     

    Any
      notice, demand, or communication required or permitted to be given by any
      provision of this Agreement shall be in writing or transmitted electronically
      and shall be deemed to have been duly given when received, if personally
      delivered; upon confirmation of receipt (by use of “confirmation to sender” or
      other means), if transmitted by telecopy or by electronic or digital
      transmission method; or on the next business day after it is sent, if sent
      for
      overnight delivery by a recognized overnight delivery service, charges prepaid,
      addressed as follows:

     

    If
      to
      Buyer, to:    CAB
      Container Partners

    c/o
      Access Leasing Corporation

    220
      Juana
      Avenue

    San
      Leandro, California 94577

    Attention:
      Charles R.F. Kremer

    Phone
      No.: (510) 849-1574

    Facsimile
      No.: (510) 291-2927

    Email:
      ckremer@accesslc.com

     

    With
      a
      copy to :

    Cypress
      Equipment Management Corporation III

    Bayside
      Plaza

    188
      The
      Embarcadero, Suite 420

    San
      Francisco, California 94105

    Attention:
      Stephen Harwood

    Phone
      No.: 415-281-3020

    Facsimile
      No.: 415-281-3021

    

    If
      to FSI
      or Seller, to:    

                    
      PLM Financial Services, Inc.

    405
      Lexington Avenue, 67th
      Floor

    New
      York,
      NY 10174

    Phone
      No.: 212-682-3344

    Facsimile
      No.: 212-682-3464

    Attention:
      Rick Brock, Chief Financial Officer

    Email:
      rbrock@plmi.com 

    

    Any
      party
      by notice given in accordance with this Section to the other parties may
      designate another address or person for receipt of notices
      hereunder.

    

    16.  Waivers
      and Amendments; Non-Contractual Remedies; Preservation of
      Remedies.

     

    This
      Agreement may be amended, superseded, modified, supplemented or terminated,
      and
      the terms hereof may be waived, only by written instrument signed by the parties
      or, in the case of a waiver, by the party waiving compliance. No delay on the
      part of any party in exercising any right, power or privilege hereunder shall
      operate as a waiver thereof. No waiver on the part of any party of any such
      right, power or privilege, nor any single or partial exercise of any such right,
      power or privilege, shall preclude any further exercise thereof or the exercise
      of any other such right, power or privilege. The rights and remedies herein
      provided are cumulative and are not exclusive of any rights or remedies that
      any
      party may otherwise have at law or in equity.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    17.  Governing
      Law;
      Forum.

     

    This
      Agreement will be governed by and construed under the laws of the State of
      New
      York without regard to its conflicts or choice of law provisions. Any legal
      action or proceeding with respect to this Agreement may be brought in the courts
      of the State of California or of the United States for the Northern District
      of
      California, and by execution and delivery of this Agreement, each party
      consents, for itself and in respect of its property, to the non-exclusive
      jurisdiction of those courts. Each party waives any objection, including any
      objection to the laying of venue or based on the grounds of forum
      non conveniens,
      which
      it may now or hereafter have to the bringing of any action or proceeding in
      such
      jurisdiction in respect of this Agreement or any document related hereto.

     

    18.  Binding
      Effect; Assignment.

     

    No
      party
      shall assign this Agreement to any other person without the prior written
      consent of all other parties. This Agreement shall be binding upon and inure
      to
      the benefit of the parties and their respective successors and permitted
      assigns. No assignment of this Agreement or of any rights hereunder shall
      relieve the assigning party of any of its obligations or liabilities hereunder.
      This Agreement, the Bill of Sale, and the certificates, schedules, annexes
      and
      other documents executed and delivered at or before the Closing in connection
      herewith are the complete agreement of the parties regarding the subject matter
      hereof and thereof and supersede all prior understandings (written or oral),
      communications and agreements.

     

    19.  Counterparts.

     

    This
      Agreement may be executed by the parties in separate counterparts, each of
      which
      when so executed and delivered shall be an original, but all such counterparts
      shall together constitute one and the same instrument.

     

    20.  Severability.

     

    Whenever
      possible, each provision of this Agreement will be interpreted in such manner
      as
      to be effective and valid under applicable law, but if any provision of this
      Agreement is held to be prohibited by or invalid under applicable law, such
      provision will be effective only to the extent of such prohibition or
      invalidity, without invalidating the remainder of such provision or the
      remaining provisions of this Agreement, and the remainder of such provision
      and
      the remaining provisions of this Agreement shall be interpreted, to the maximum
      extent possible, so as to conform to the original intent of this
      Agreement.

     

    21.  Indemnities.

     

    (a)  Buyer
      will indemnify and hold Seller and
      FSI
      harmless from any liability, loss, cost or expense (“Claim”),
      including reasonable attorneys’ fees, which shall result from (i) the
      incorrectness of any representation or breach of any warranty of Buyer contained
      in this Agreement or in any other agreement, instrument, certificate or other
      document delivered by Buyer pursuant hereto; or (ii) a breach by Buyer of any
      of
      its covenants or agreements contained in this Agreement, any other agreement,
      instrument, certificate or other document delivered by Buyer in connection
      with
      the transactions contemplated by this Agreement. Upon payment of such indemnity,
      Buyer shall be subrogated to the indemnitee’s rights against any third parties
      respecting the Claims. Anything contained in this Agreement to the contrary
      notwithstanding, Buyer shall not be required to indemnify Seller if and to
      the
      extent Seller is indemnified and fully compensated for its Claim by a third
      party.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (b)  FSI
      and
      Seller jointly and severally will indemnify and hold Buyer harmless from any
      Claim, including reasonable attorneys’ fees, which shall result from (i) the
      incorrectness of any representation or breach of any warranty of FSI or Seller
      contained in this Agreement or in any certificate or other document delivered
      by
      FSI or Seller pursuant hereto; (ii) a breach by FSI or Seller of any of its
      covenants or agreements contained in this Agreement, any other agreement,
      instrument, certificate or other document delivered by FSI or Seller in
      connection with the transactions contemplated by this Agreement; or (iii) any
      Claim or legal proceedings with respect to any Containers (or any part thereof)
      arising or relating to any period prior to and including the Closing Date,
      including Claims of limited partners in Seller or other third parties based
      upon
      or arising out of Seller’s ownership, management, disposition or sale of the
      Containers. Upon payment of such indemnity, FSI or Seller,
      as
      the
      case may be, shall
      be
      subrogated to Buyer’s rights against any third parties respecting the Claims.

     

    (c)  A
      party
      seeking indemnification pursuant to Sections 21(a) or (b) above (an
“Indemnified
      Party”)
      shall
      give prompt notice to the party from whom such indemnification is sought (the
      “Indemnifying
      Party”)
      of the
      assertion of any Claim, or the commencement of any action, suit or proceeding,
      in respect of which indemnification may be sought hereunder and will give the
      Indemnifying Party such information with respect thereto as the Indemnifying
      Party may reasonably request; but no failure to give such notice shall relieve
      the Indemnifying Party of any liability hereunder (except to the extent the
      Indemnifying Party has suffered actual prejudice thereby). The Indemnifying
      Party may, at its expense, participate in or assume the defense of any such
      action, suit or proceeding involving a third party; provided,
      however,
      that
      such defense is conducted with counsel mutually satisfactory to the Indemnified
      Party and the Indemnifying Party. The Indemnified Party and the Indemnifying
      Party shall consult with each other regarding the conduct of such defense.
      The
      Indemnified Party shall have the right (but not the duty) to participate in
      the
      defense thereof, and to employ counsel, at its own expense (except that the
      Indemnifying Party shall pay the fees and expenses of such counsel to the extent
      the Indemnified Party reasonably concludes that there is a conflict of interest
      between the Indemnified Party and the Indemnifying Party), separate from counsel
      employed by the Indemnifying Party in any such action. The Indemnifying Party
      shall be liable for the fees and expenses of counsel employed by the Indemnified
      Party if the Indemnifying Party has not assumed the defense thereof. Whether
      or
      not the Indemnifying Party chooses to defend or prosecute any Claim involving
      a
      third party, all the parties hereto shall cooperate in the defense or
      prosecution thereof and shall furnish such records, information and testimony,
      and attend at such conferences, discovery proceedings, hearings, trials and
      appeals, as may be reasonably requested in connection therewith. The
      Indemnifying Party shall not be liable under Sections 21(a) or 21(b) for any
      settlement effected without its written consent (as contemplated above) for
      any
      Claim, litigation or proceeding in respect of which indemnity may be sought
      hereunder. No Claim for indemnification, except Claims based on (i) a breach
      of
      the representations contained in Section 5.07 hereof or (ii) the assessment
      of
      taxes, interests or penalties contemplated in Section 7.02 hereof, may be first
      initiated or asserted by any Indemnified Party against any Indemnifying Party
      after December 31, 2006.

     

    (d)  Each
      of
      the parties (i) acknowledges that under the Lease Agreements the owner of the
      Containers may be indemnified and insured for various liabilities, casualties
      and losses, and (ii) agrees that (as between Seller and Buyer) each party hereto
      shall be entitled to enforce and collect such indemnities and insurance directly
      from the indemnitor or insurer to the extent arising from a loss suffered by
      such party because of its interest, or prior interest, as owner of the
      Containers.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    22.  Headings;
      Table of Contents. 

     

    The
      headings and the Table of Contents contained in this Agreement are for
      convenience of reference only, and shall not effect in any way the meaning
      or
      interpretation of this Agreement.

     

    [Signature
      Pages Follow]

    
      
         

        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    [Signature
      Page to Container Purchase Agreement]

    

     

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Agreement as
      of
      the date first above written.

     

    
      	
              Seller:

               

              PLM
                EQUIPMENT GROWTH FUND VI LIQUIDATING TRUST 

               

              and

               

              PLM
                EQUIPMENT GROWTH FUND VII LIQUIDATING TRUST

               

               

              By: PLM
                FINANCIAL SERVICES, INC.,

              as
                to both, solely in its capacity as Trustee and not
                individually

               

              By:

              Richard
                K. Brock,

              its
                Chief Financial Officer

               

               

               

              PROFESSIONAL
                LEASE MANAGEMENT INCOME FUND I, L.L.C.

               

              By: PLM
                FINANCIAL SERVICES, INC.,

              as
                its Manager

               

              By:

              Richard
                K. Brock,

              its
                Chief Financial Officer

               

            	
              Buyer:

               

              CAB
                CONTAINER PARTNERS,

               

              a
                California general partnership

               

              By: Cypress
                Containers 2006, LLC, a California limited liability company, as
                a general
                partner

               

              By
                Cypress Equipment Management Corporation III

               

              By: ____________________

              Name: Stephen
                R. Harwood

              Title: President

               

              and

               

              By: Access
                Shipping Limited Partnership, a Connecticut limited partnership,
                as a
                general partner

               

              By
                Access Shipping Corporation, its general partner

               

              By: ____________________

              Name: Charles
                R.F. Kremer

              Title: President

               

              and

               

              By: 1727
                Investments LLC, a California limited liability company, as a general
                partner

               

              By: ____________________

              Name: Stephen
                M. Bess

              Title: Managing
                Member

            
	
              FSI:

               

              PLM
                FINANCIAL SERVICES, INC.

               

              By:
                __________________________

              Richard
                K. Brock,

              its
                Chief Financial Officer

            	 

    

    

     

    

    

    
      
        
        

      

      
        -15-

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