Document:

Purchase Agreement (N14645)

    EXHIBIT
      10.1

     

    

     

    

     

     

    PURCHASE
      AGREEMENT (N14645)

     

    

     

    dated
      as
      of December 1, 2006

     

    between

     

    PLM
      CAL I LLC,

    as
      Seller,

     

    and

     

    DOUGHERTY
      AIR TRUSTEE, LLC,

    as
      Purchaser

     

    _______________________________

     

    One
      (1)
      Boeing model 737-524 Aircraft

     

    Manufacturer’s
      Serial Number 28906

     

    _______________________________

     

    

     

    

     

    

     

    

     

    
      
        
        

      

      
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    ARTICLE IDEFINITIONS1

    Section
      1.1.Defined
      Terms1

     

    ARTICLE IISALE
      AND
      PURCHASE; OTHER AGREEMENTS4

    Section
      2.1.Sale
      and
      Purchase4

    Section
      2.2.Acquisition
      Price; Payment4

    Section
      2.3.Rent
      Payments5

    Section
      2.4.Taxes5

     

    ARTICLE IIICLOSING;
      CONDITIONS TO CLOSING5

    Section
      3.1.Closing5

    Section
      3.2.Seller’s
      Conditions to Closing6

    Section
      3.3.Purchaser’s
      Conditions to Closing7

     

    ARTICLE IVREPRESENTATIONS,
      WARRANTIES AND COVENANTS8

    Section
      4.1.Representations,
      Warranties and Covenants of Seller8

    Section
      4.2.Representations,
      Warranties and Covenants of Purchaser10

     

    ARTICLE VRESERVED
      RIGHTS12

    Section
      5.1.Reserved
      Rights12

    Section
      5.2.Allocation
      of Amounts12

    Section
      5.3.Indemnification12

    Section
      5.4.Mutual
      Cooperation12

     

    ARTICLE VIMISCELLANEOUS13

    Section
      6.1.Transaction
      Costs13

    Section
      6.2.Brokers,
      Finders, Etc.13

    Section
      6.3.Announcements13

    Section
      6.4.Counterparts13

    Section
      6.5.Amendments,
      Etc.; Entire Agreement13

    Section
      6.6.Successors
      and Assigns14

    Section
      6.7.Governing
      Law; Submission to Jurisdiction14

    Section
      6.8.WAIVER
      OF
      JURY TRIAL14

    Section
      6.9.Notices,
      Etc.15

    Section
      6.10.Severability
      of Provisions16

    Section
      6.11.Headings,
      Etc.16

    Section
      6.12.Further
      Assurances; Confidentiality16

    Section
      6.13.Survival17

    Section
      6.14.Counterparts17

    
      
        
        

      

      
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    SCHEDULES
      AND EXHIBITS

     

    
      	
              SCHEDULE
                1

            	
              Transaction
                Documents 

            
	
              SCHEDULE
                2

            	
              Financial
                Information

            
	
              EXHIBIT
                A

            	
              Form
                of Assignment and Assumption Agreement

            
	
              EXHIBIT
                B

            	
              Form
                of Tax Indemnity Agreement
                Assignment

            

    

    

    

    
      
        
        

      

      
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    PURCHASE
      AGREEMENT (N14645)

    

    THIS
      PURCHASE AGREEMENT (N14645), dated
      as
      of December 1, 2006 (this “Agreement”),
      is by
      and between PLM
      CAL I LLC,
      a
      Delaware limited liability company (“Seller”)
      and
DOUGHERTY
      AIR TRUSTEE, LLC, a
      Delaware limited liability company, not in its individual capacity, but solely
      as the investment trustee under the Investment Trust Agreement (“Purchaser”).
      

     

    WHEREAS,
      Seller
      owns the beneficial interest in the trust estate created pursuant to the Trust
      Agreement 645 listed on Schedule 1 hereto;

     

    WHEREAS,
      upon
      the terms and subject to the conditions set forth herein, Seller desires to
      sell, assign, transfer, convey and set over to Purchaser, and Purchaser desires
      to purchase, accept and assume from Seller, Seller’s right, title and interest
      in and to such beneficial interest;

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements herein contained and for
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, subject to the terms and conditions set forth herein,
      the
      parties hereto hereby agree as follows:

     

    ARTICLE I  

     

    DEFINITIONS

     

    Section
      1.1.  Defined
      Terms.
      

     

    (a) The
      following terms shall have the following meanings for all purposes of this
      Agreement:

     

    “Acquisition
      Price”
shall
      have the meaning set forth in Section 2.2(a).

     

    “Aircraft”
means
      that certain Boeing 737-524 aircraft bearing manufacturer’s serial number 28906
      and Federal Aviation Administration Registration Number N14645 and two CFM
      International, Inc. CFM 56-3-B1 model engines bearing manufacturer’s serial
      numbers 858653 and 858654, respectively.

     

    “Applicable
      Law”
means
      all applicable laws of any Governmental Authority, including, without
      limitation, federal, state and foreign securities laws, tax laws, tariff and
      trade laws, ordinances, judgments, decrees, injunctions, writs and orders or
      like actions of any Governmental Authority and rules, regulations, orders,
      interpretations, licenses, and permits of any federal, regional, state, county,
      municipal or other Governmental Authority.

     

    “Assignment
      and Assumption Agreement”
means
      an assignment and assumption agreement with respect to the Equity Interest
      Transfer, substantially in the form of Exhibit A hereto.

     

    “Business
      Day”
means
      any day other than a Saturday, Sunday or other day on which commercial banks
      are
      authorized or required by law to close in New York, New York, Minneapolis,
      Minnesota, Wilmington, Delaware or Salt Lake City, Utah. 

     

    
      
        
        

      

      
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    “Citizen
      of the United States”
      means a
“citizen of the United States” within the meaning of 49 U.S.C. §
40102(a)(15).

     

    “Closing
      Date”
means
      the date on which the Equity Interest Transfer is consummated, which date shall
      be a Business Day specified by Seller and reasonably acceptable to Purchaser
      (and which date shall be on or before December 1, 2006, unless Seller and
      Purchaser agree to a later date).

     

    “Equity
      Interest”
means
      all of the beneficial interest in the Trust Estate and all of Owner
      Participant’s right, title and interest in, to and under the Transaction
      Documents (including, without limitation, the Trust Agreement, but excluding
      Reserved Rights) arising from and after the Closing Date.

     

    “Equity
      Interest Transfer”
means
      the transfer, sale and assignment from Seller to Purchaser of the Equity
      Interest as contemplated by, and subject to the terms and conditions of, this
      Agreement and the Assignment and Assumption Agreement.

     

    “Event
      of Loss”
means
      an “Event of Loss” under any Transaction Document.

     

    “FAA”
      shall
      have the meaning assigned to such term in the Participation
      Agreement.

     

    “Governmental
      Authority”
means
      any nation or government (including any state or other political subdivision
      of
      either thereof) and any entity exercising executive, legislative, judicial,
      regulatory or administrative functions of or pertaining to
      government.

     

    “Guarantor”
means
      Tennessee Commerce Bank, a Tennessee banking association.

     

    “Guaranty”
means
      that certain Guaranty (N14645) dated as of even date hereof in form and
      substance reasonably satisfactory to Lessee, Owner Trustee, and Mortgagee,
      providing for the guaranty by Guarantor of Purchaser’s obligations under the
      Transaction Documents.

     

    “Indebtedness”
      means
      the
      amount set forth in Schedule 2 hereto. 

     

    “International
      Registry”
      has the
      meaning set forth in the Cape Town Convention on International Interests in
      Mobile Equipment and the related Aircraft Equipment Protocol, as in effect
      in
      the United States. 

     

    “Investment
      Trust Agreement”
      means
      that certain Investment Trust Agreement as to Dougherty Air III Investment
      Trust, dated as of December 1, 2006, between Dougherty Air Trustee, LLC and
      First Technology Capital, Inc.

     

    “Lease”
means
      the Lease Agreement 645 listed on Schedule 1 hereto.

     

    “Lessee”
means
      Continental Airlines, Inc.

     

    “Lien”
means
      any mortgage, pledge, security interest, charge, lien or other
      encumbrance.

     

    “Owner
      Participant”
shall
      have the meaning assigned to such term in the Participation 

     

    
      
        
        

      

      
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    Agreement.

     

    “Owner
      Trustee”
means
      Wells Fargo Bank Northwest, National Association, as successor to First Security
      Bank, National Association, not in its individual capacity except as otherwise
      expressly provided but solely as Owner Trustee.

     

    “Participation
      Agreement”
means
      the Participation Agreement 645 listed on Schedule 1 hereto.

     

    “Person”
means
      any individual, corporation, partnership, joint venture, association, limited
      liability company, joint-stock company, trust, unincorporated organization
      or
      any Governmental Authority or any political subdivision thereof.

     

    “Reserved
      Rights”
means
      any and all rights and interests of Seller in respect of the following:
      (i) Seller’s right to tax and other indemnification under any Transaction
      Document as a result of or arising out of events occurring or circumstances
      existing prior to the Closing Date (or claim asserted against Seller with
      respect to a matter subsequent to such Closing Date, if Seller would otherwise
      be entitled to indemnification for such claim under a Transaction Document),
      (ii) each and every obligation of Lessee to provide liability insurance on
      behalf of or in favor of Seller as an additional insured under any Transaction
      Document, (iii) any interest payable by Lessee on any amount referred to in
      clauses (i) and (ii) above, and (iv) the right to enforce payment of the
      amounts referred to in clauses (i) through (iii) above. 

     

    “Tax
      Indemnity Agreement”
means
      the Tax Indemnity Agreement 645 listed on Schedule 1 hereto.

     

    “Tax
      Indemnity Agreement Assignment”
      means
      that certain Tax Indemnity Agreement 645 Assignment dated as of even date hereof
      in a form acceptable to Purchaser and Lessee.

     

    “Transaction
      Documents”
means,
      collectively, the documentation identified as such on Schedule 1 attached
      hereto.

     

    “Transfer
      Documents”
means,
      collectively, this Agreement, the Assignment and Assumption Agreement, the
      Guaranty and Tax Indemnity Agreement Assignment.

     

    “Trust
      Agreement”
means
      the Trust Agreement 645 listed on Schedule 1 hereto.

     

    “Trust
      Estate”
shall
      have the meaning set forth in the Trust Agreement.

     

    “Trust
      Indenture”
means
      the Trust Indenture and Mortgage 645 listed on Schedule 1 hereto.

     

    (a) Capitalized
      terms used herein to the extent not defined above shall have the meaning
      specified in the Participation Agreement (as such terms are defined, by
      reference to another document or otherwise).

     

    (b) Unless
      otherwise indicated, all references in this Agreement to sections, paragraphs,
      clauses, schedules, appendices and exhibits are to sections, paragraphs,
      clauses, 

     

    
      
        
        

      

      
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    schedules,
      appendices and exhibits in and to this Agreement.

     

    ARTICLE II  

     

    SALE
      AND PURCHASE; OTHER AGREEMENTS

     

    Section
      2.1 Sale
      and Purchase.

     

    (a) Sale
      of Equity Interest.
      Subject
      to the terms and conditions set forth herein and in the Assignment and
      Assumption Agreement (including, without limitation, satisfaction of the
      conditions precedent set forth herein and in the Assignment and Assumption
      Agreement), on the Closing Date, Seller hereby agrees to sell, convey, assign,
      transfer and set over unto Purchaser, as of the Closing Date, the Equity
      Interest.

     

    (b) Purchase
      of Equity Interest.
      Subject
      to the terms and conditions set forth herein and in the Assignment and
      Assumption Agreement (including, without limitation, satisfaction of the
      conditions precedent set forth herein), on the Closing Date, Purchaser hereby
      agrees to purchase and accept from Seller, as of the Closing Date, the Equity
      Interest.

     

    (c) Closing.
      The
      closing and effectiveness (“Closing”)
      of the
      Equity Interest Transfer contemplated hereby shall take place (i) upon the
      execution and delivery of the Assignment and Assumption Agreement, (ii) upon
      satisfaction (or waiver) of the conditions precedent set forth herein and in
      the
      Assignment and Assumption Agreement, and (iii) on the Closing Date. In the
      event
      that the Closing does not take place on or before November 30, 2006, this
      Agreement shall automatically terminate and be of no further effect with the
      exception of the obligations under Sections 6.1 and 6.12, hereof, which shall
      survive termination.

     

    Section
      2.2.  Acquisition
      Price; Payment.

     

    (a) Acquisition
      Price for the Equity Interest.
      The
      purchase price payable by Purchaser to Seller for the Equity Interest on the
      Closing Date (the “Acquisition
      Price”)
      shall
      be the amount set forth in Schedule 2 attached hereto. The Acquisition Price
      for
      the Equity Interest shall be payable by Purchaser in lawful dollar currency
      of
      the United States of America in the manner contemplated by, and to Seller’s
      account specified in, paragraph (b) of this Section 2.2.

     

    (b) Payment
      Instructions.
      Payment
      of the Acquisition Price on the Closing Date shall be made to the account of
      Seller by wire transfer of immediately available funds, without deduction or
      withholding of any kind, to the following account or any other account and
      in
      such other manner as Seller may direct:

     

    Bank: Comerica
      Bank

    ABA
      Number:  121137522

    Account
      Number: 1891533166

    Account
      Name: PLM
      International, Inc.

    Reference: N14645

    

    (c) Event
      of Loss.
      In the
      event of an Event of Loss with respect to the Aircraft prior to the Closing
      Date, the obligations of Purchaser and Seller hereunder (except under
      Section 6.12(b)) shall terminate.

     

    
      
        
        

      

      
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    Section
      2.3 Rent
      Payments.
      All
      Rent due prior to the Closing Date will be for the account of Seller regardless
      of when paid by Lessee and all Rent due on or after the Closing Date will be
      for
      the Account of Purchaser regardless of when paid by Lessee. If either Purchaser
      or Seller receives from Lessee any Rent for the account of the other party,
      such
      other party receiving such Rent shall pay the amount received to the other
      party
      within three Business Days after receipt.

     

    Section
      2.4 Taxes.
      Seller
      shall be responsible for payment of and shall pay (at no after-tax cost to
      Purchaser, Owner Trustee or the Trust Estate (collectively, the “Tax
      Indemnitees”
and,
      individually, a “Tax
      Indemnitee”)
      any
      and all license, recording and documentation fees, and sales, use, excise,
      transfer, value added, gross receipts, property or any other similar taxes,
      fees
      or charges imposed on or with respect to the Aircraft, or the ownership,
      leasing, use or operation thereof or the rentals derived therefrom (hereinafter,
      individually, a “Covered
      Tax”,
      and
      collectively, “Covered
      Taxes”)
      imposed by the United States federal or any state or local government or taxing
      authority upon or in respect of the sale, assignment or transfer of the Equity
      Interest as contemplated hereby (provided, however, that Seller shall not be
      responsible for any (a) taxes based on, measured by, or with respect to net
      or gross income or capital of such Tax Indemnitee or (b) taxes related to
      the Aircraft and arising after the Closing). Seller shall indemnify each Tax
      Indemnitee against the imposition of any Covered Tax immediately upon receipt
      of
      such Indemnitee’s demand therefor, which demand shall be accompanied by
      documentation evidencing the imposition of such Covered Tax. Subject to the
      scheduled locations of the equipment constituting the Trust Estate on the
      Closing Date, Purchaser agrees to cooperate with Seller concerning the time
      of
      closing of the transaction contemplated hereby on the Closing Date so as to
      eliminate or minimize the imposition of any Taxes that otherwise might be
      imposed upon or in respect of the Equity Interest Transfer as contemplated
      hereby.

     

    If
      Seller
      disputes the payment of any Covered Taxes payable by Seller or Purchaser for
      which Seller is responsible under this Agreement, Seller shall have the right,
      at Seller’s expense, to contest the payment of such Covered Taxes, provided that
      (i) Purchaser in its sole discretion considers that such contest shall not
      materially prejudice it or result in any risk of criminal penalty or danger
      of
      sale, forfeiture or loss of the Aircraft or Equity Interest, (ii) Seller
      has provided Purchaser with an opinion, reasonably satisfactory to Purchaser,
      that it is more likely than not that the contest will be successful, and
      (iii) Seller has made adequate provision to the satisfaction of Purchaser
      in respect of the expenses concerned.

     

    ARTICLE III  

     

    CLOSING;
      CONDITIONS TO CLOSING

     

    Section
      3.1 Closing.
      The
      closing in respect of the Equity Interest Transfer shall commence at such time
      as Seller and Purchaser may mutually agree on the Closing Date.

     

    Section
      3.2 Seller’s
      Conditions to Closing.
      The
      obligation of Seller to sell, convey, assign, transfer and set over the Equity
      Interest to Purchaser on the Closing Date is subject to the satisfaction (to
      the
      reasonable satisfaction of Seller) or the waiver by Seller of the following
      conditions precedent: 

     

    
      
        
        

      

      
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    (a) Representations
      and Warranties.
      The
      representations and warranties of Purchaser contained herein and in all
      other Transfer Documents to which Purchaser is a party and of the Guarantor
      contained in the Guaranty shall be true and correct as of the Closing Date
      with
      the same force and effect as though made on and as of the Closing Date, except
      to the extent that any such representation or warranty relates solely to an
      earlier date in which case such representation or warranty shall have been
      true
      and correct on and as of such earlier date. 

     

    (b) Due
      Authorization.
      Seller
      shall have received (i) a copy of the articles of organization and operating
      agreement of Purchaser, (ii) a good standing certificate for Purchaser in the
      state of Delaware, and (iii) such officer or incumbency certificates as may
      be
      necessary to establish the authority of the Purchaser’s signatories to the
      Transfer Documents.

     

    (c) Consents
      and Approvals.
      All
      approvals and consents which are required under the Transaction Documents in
      connection with the transaction contemplated by this Agreement, and the other
      Transfer Documents, shall have been duly obtained, given, accomplished or
      waived.

     

    (d) No
      Default.
      Purchaser shall not be in default of any of its obligations hereunder or under
      any of the Transfer Documents to which it is a party and Guarantor shall not
      be
      in default of any of its obligations under the Guaranty. No Default or Event
      of
      Default as defined in the Transaction Documents shall have occurred and be
      continuing and each of the Transaction Documents shall be in full force and
      effect.

     

    (e) Acquisition
      Price.
      Seller
      shall have received the Acquisition Price relating to the Equity Interest to
      be
      transferred on the Closing Date in the manner contemplated by, and to the
      account specified in, Section 2.2 herein.

     

    (f) Guaranty.
      Purchaser shall have caused the Guarantor to provide the Guaranty to Lessee,
      Owner Trustee and Mortgagee.

     

    (g) Litigation. No
      action, proceeding or investigation shall have been instituted or threatened
      by
      any Person before any Governmental Authority, nor shall any order, writ,
      judgment or decree have been issued or proposed to be issued by any Governmental
      Authority as of the Closing Date, which in any case questions the validity
      or
      legality of this Agreement, the transactions contemplated hereby or by the
      Transaction Documents or the ability of either party hereto to consummate any
      of
      such transactions.

     

    (h) Assignment
      and Assumption Agreement.
      Seller
      shall have received this Agreement and the Assignment and Assumption Agreement,
      in each case duly executed and delivered by Purchaser. The Assignment and
      Assumption Agreement shall have been duly filed with the FAA. 

     

    (i) Insurance.
      Seller
      shall have received evidence satisfactory to it that it has been named as an
      additional insured under the liability policies maintained pursuant to the
      Lease.

     

    (j) No
      Sales Tax.
      The
      Aircraft shall be located in a jurisdiction in which, in Seller’s judgment, no
      sales, use or similar tax will be due upon or in respect of the sale, assignment
      or transfer of the Equity Interest as contemplated hereby. 

     

    
      
        
        

      

      
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    (k) FAA
      Counsel Opinion.
      Seller
      shall have received an opinion from McAfee & Taft, special FAA counsel, in
      the customary form, scope and substance satisfactory to the Seller as to title
      to the Aircraft and related Engines and as to the appropriate filings with
      the
      FAA and the International Registry, if any.

     

    Section
      3.3 Purchaser’s
      Conditions to Closing.
      The
      obligation of Purchaser to acquire the Equity Interest and to pay the
      Acquisition Price on the Closing Date is subject to the satisfaction of (to
      the
      reasonable satisfaction of Purchaser), or the waiver by Purchaser of the
      following conditions precedent:

     

    (a) Representations
      and Warranties.
      The
      representations and warranties of Seller contained herein, in all other Transfer
      Documents to which it is a party and in all of the Transaction Documents shall
      be true and correct as of the Closing Date with the same force and effect as
      though made on and as of the Closing Date, except to the extent that any such
      representation or warranty relates solely to an earlier date in which case
      such
      representation or warranty shall have been true and correct on and as of such
      earlier date. 

     

    (b) Due
      Authorization.
      Purchaser shall have received (i) a copy of the articles of organization and
      operating agreement of Seller, (ii) a good standing certificate for Seller
      in
      the State of Delaware, and (iii) such officer or incumbency certificates as
      may
      be necessary to establish the authority of the signatories to the Transfer
      Documents.

     

    (c) Consents
      and Approvals.
      All
      approvals and consents required under the Transaction Documents in connection
      with the transaction contemplated by this Agreement and the Assignment and
      Assumption Agreement relating to the Equity Interest to be transferred on the
      Closing Date shall have been duly obtained, given or accomplished. 

     

    (d) No
      Default.
      Seller
      shall not be in default of any of its obligations hereunder or under any of
      the
      Transfer Documents to which it is a party. No Default or Event of Default as
      defined in the Transaction Documents shall have occurred and be continuing
      and
      each of the Transaction Documents shall be in full force and
      effect.

     

    (e) No
      Material Adverse Change.
      On the
      Closing Date, there shall have been no material adverse change in the condition
      of the Aircraft.

     

    (f) Assignment
      and Assumption Agreement.
      Purchaser shall have received this Agreement and the Assignment and Assumption
      Agreement, in each case duly executed and delivered by Seller. The Assignment
      and Assumption Agreement shall have been duly filed with the FAA.

     

    (g) Insurance.
      Purchaser shall have received (i) a certificate from Lessee’s independent
      insurance broker evidencing the insurance required to be maintained pursuant
      to
      the Lease and listing Purchaser and Purchaser’s beneficiary as additional
      insureds; and (ii) a report from Lessee’s insurance broker evidencing Lessee’s
      compliance with the terms of the Lease and as to such other matters as Purchaser
      may reasonably request.

     

    (h) FAA
      Counsel Opinion.
      Purchaser shall have received an opinion from McAfee & Taft, special FAA
      counsel, in the customary form, scope and substance satisfactory to

     

    
      
        
        

      

      
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    the
      Purchaser as to title to the Aircraft and related Engines and as to the
      appropriate filings with the FAA and the International Registry, if
      any.

     

    (i) Tax
      Indemnity Agreement.
      Seller
      has assigned Purchaser, pursuant to an assignment in form and substance as
      the
      attached Exhibit B, all of Sellers right, title and interest in and to that
      certain Tax Indemnity Agreement 645 arising from and after the Closing Date,
      but
      excluding in each case any and all rights and interests of Seller in respect
      of
      the following: (i) Seller’s right to tax and other indemnification under
      the Tax Indemnity Agreement as a result of or arising out of events occurring
      or
      circumstances existing prior to the Closing Date (or claim asserted against
      Seller with respect to a matter subsequent to the Closing Date, if Seller would
      otherwise be entitled to indemnification for such claim under the Tax Indemnity
      Agreement, (ii) any interest payable by Lessee on any amount referred to
      above and (iii) the right to enforce payment of the amounts referred to in
      clauses (i) and (ii) above.

     

    (j) Litigation. No
      action, proceeding or investigation shall have been instituted or threatened
      by
      any Person before any Governmental Authority, nor shall any order, writ,
      judgment or decree have been issued or proposed to be issued by any Governmental
      Authority as of the Closing Date, which in any case questions the validity
      or
      legality of this Agreement, the transactions contemplated hereby or by the
      Transaction Documents or the ability of either party hereto to consummate any
      of
      such transactions.

     

    ARTICLE IV  

     

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS

     

    Section
      4.1 Representations,
      Warranties and Covenants of Seller.
      Seller
      hereby represents and warrants to Purchaser, as of the date hereof and as of
      the
      Closing Date as follows:

     

    (a) Organization,
      Corporate Authority, Etc.
      Seller
      is a limited liability company duly formed, validly existing and in good
      standing under the laws of the State of Delaware. Seller has all requisite
      power
      and authority to enter into and perform its obligations under the Transfer
      Documents.

     

    (b) Authorization,
      Etc.
      This
      Agreement and the Assignment and Assumption Agreement (when entered into by
      Seller) have been (or will have been) duly authorized, executed and delivered
      by
      Seller and this Agreement and the Assignment and Assumption Agreement
      constitutes (or will constitute) the legal, valid and binding obligations of
      Seller, enforceable against Seller in accordance with its terms, except as
      enforcement of the terms hereof and thereof may be limited by applicable
      bankruptcy, insolvency, reorganization, liquidation, moratorium or similar
      laws
      affecting enforcement of creditors’ rights generally, and by general principles
      of equity.

     

    (c) No
      Violation.
      None of
      the execution, delivery or performance by Seller of the Transfer Documents,
      or
      the consummation by Seller of the transaction contemplated hereby and thereby,
      will contravene any Applicable Law binding on Seller or any of its property,
      or
      any provision of the certificate of formation or operating agreement of Seller,
      or will result in a breach of, or constitute a default under, or contravene
      any
      provision of, any mortgage, deed of trust, indenture or other agreement or
      instrument to which Seller is a party or by which Seller or 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    all
      or
      any of its property or assets is bound.

     

    (d) Seller’s
      Liens; Indebtedness.
      Seller
      is the sole legal and beneficial owner of the Equity Interest and the
      Indebtedness is equal to the outstanding principal and accrued interest due
      under the Trust Indenture as of the date of this Agreement. There are no Liens
      on the Equity Interest, and on the Closing Date, Seller will transfer to
      Purchaser good and marketable title to the Equity Interest, other than the
      Reserved Rights, free and clear of any and all Liens other than Liens permitted
      by the terms of the Transaction Documents. 

     

    (e) No
      Consents or Approvals.
      None of
      the execution, delivery or performance by Seller of the Transfer Documents,
      or
      the consummation by Seller of the transaction contemplated hereby and thereby,
      requires the consent or approval of, the giving of notice to, the registration,
      recording or filing of any documents with, or the taking of any other action
      in
      respect of, any Governmental Authority, except such as have been obtained or
      effected on or prior to the Closing Date.

     

    (f) No
      Litigation.
      There
      are no pending or, to the best of Seller’s knowledge, threatened investigations,
      suits or proceedings against Seller or affecting Seller or its properties,
      that,
      if determined adversely, would adversely affect the consummation of the
      transaction contemplated by, or the performance by Seller of its obligations
      under, the Transfer Documents.

     

    (g) No
      Violation of Law.
      Seller
      is not in breach of any Applicable Law that would have an adverse effect on
      Seller or on the transaction contemplated by, or on Seller’s ability to perform
      its obligations under, the Transfer Documents.

     

    (h) Disclaimer.
      EXCEPT
      AS PROVIDED IN ONE OR MORE OF THE TRANSFER DOCUMENTS, SELLER HAS NOT, AND SHALL
      NOT BE DEEMED TO HAVE MADE, AND SELLER HEREBY EXPRESSLY DISCLAIMS, ANY
      REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, STATUTORY OR
      OTHERWISE, WITH RESPECT TO THE AIRCRAFT, THE TRUST ESTATE, THE EQUITY INTEREST
      OR THE TRANSACTION DOCUMENTS, INCLUDING WITHOUT LIMITATION, ANY IMPLIED
      WARRANTIES OF MERCHANTABILITY, COMPLIANCE WITH DESCRIPTION, FITNESS FOR ANY
      PARTICULAR PURPOSE, AIRWORTHINESS, QUALITY, WORKMANSHIP, VALUE, CONDITION,
      DESIGN, MANUFACTURE, PERFORMANCE OR OPERATION, OR ANY WARRANTIES OR
      REPRESENTATIONS ARISING OUT OF CUSTOMARY TRADE USAGE AND PRIOR COURSE OF
      DEALING, WHETHER OR NOT ANY DEFECT IS APPARENT OR LATENT ON THE CLOSING
      DATE.

     

    (i) Damage
      to Aircraft.
      Seller
      has no knowledge or notice that any loss or damage relating to the Aircraft,
      or
      an event that, with lapse of time or the making of a determination or both,
      might cause any loss or damage, has occurred, except for immaterial losses
      or
      damage that does not interfere with the operational status of the
      Aircraft.

     

    (j) No
      Prepayment.
      Seller
      has not received any prepayment of Rent under the Lease.

     

    (k) No
      Lessee Assignment.
      Seller
      has not consented to any assignment by the 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Lessee
      of
      its rights under the Lease or to any sublease or transfer of possession of
      the
      Aircraft subject thereto, and to Seller’s knowledge, no such assignment,
      sublease or transfer of possession has occurred.

     

    (l) No
      Lessee Termination.
      Seller
      has not received notice that Lessee has exercised its rights to an early
      termination under Section 9 of the Lease. 

     

    Section
      4.2 Representations,
      Warranties and Covenants of Purchaser.
      Purchaser hereby represents, warrants and covenants to Seller, as of the date
      hereof and as of the Closing Date, as follows:

     

    (a) Organization,
      Authority, Etc.
      Purchaser is a limited liability company duly formed, validly existing and
      in
      good standing under the laws of the State of Delaware. Purchaser has all
      requisite power and authority to enter into and perform its obligations under
      the Transfer Documents.

     

    (b) Authorization,
      Etc.
      Purchaser has taken, or caused to be taken, all necessary action to authorize
      the execution and delivery of the Transfer Documents, and the performance of
      Purchaser’s obligations thereunder. This Agreement and each of the other
      Transfer Documents (when entered into by Purchaser) has been (or will have
      been), duly authorized, executed and delivered by Purchaser and constitute
      (or
      will constitute) the legal, valid and binding obligations of Purchaser,
      enforceable against Purchaser in accordance with their respective terms, except
      as enforcement of the terms hereof and thereof may be limited by applicable
      bankruptcy, insolvency, reorganization, liquidation, moratorium or similar
      laws
      affecting enforcement of creditors’ rights generally, and by general principles
      of equity.

     

    (c) No
      Violation.
      None of
      the execution, delivery or performance by Purchaser of this Agreement, or the
      Assignment and Assumption Agreement nor the consummation by Purchaser of the
      transactions contemplated hereby and thereby, will contravene any Applicable
      Law
      binding on Purchaser or any of its property or the terms of the articles of
      organization operating agreement of Purchaser or the Investment Trust Agreement,
      or will result in a breach of, or constitute a default under, or contravene
      any
      provision of, any mortgage, deed of trust, indenture or other agreement or
      instrument to which Purchaser is a party or by which Purchaser or all or any
      of
      its property or assets are bound.

     

    (d) No
      Consents or Approvals.
      None of
      the execution, delivery or performance by Purchaser of this Agreement, or the
      other Transfer Documents, or the consummation by Purchaser of the transactions
      contemplated hereby and thereby, requires the consent or approval of, the giving
      of notice to, the registration, recording or filing of any documents with,
      or
      the taking of any other action in respect of, any Governmental Authority, except
      such as have been obtained or effected on or prior to the applicable Closing
      Date.

     

    (e) No
      Litigation.
      There
      are no pending or, to the best of Purchaser’s knowledge, threatened
      investigations, suits or proceedings against Purchaser or affecting Purchaser
      or
      its properties, that, if determined adversely, would adversely affect the
      consummation of the transaction contemplated by, or the performance by Purchaser
      of its obligations under, this Agreement, the other Transfer Documents or the
      Transaction Documents.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (f) No
      Violation of Law.
      Purchaser is not in breach of any Applicable Law that would have an adverse
      effect on Purchaser or on the transaction contemplated by, or on Purchaser’s
      ability to perform its obligations under, this Agreement, the other Transfer
      Documents or the Transaction Documents.

     

    (g) Covenant
      Regarding Insurance.
      Purchaser hereby agrees to use its best efforts to cause Lessee to name Seller
      as an additional insured under the liability insurance policies maintained
      pursuant to the Lease for a period of one (1) year from and after the Closing
      Date.

     

    (h) Citizenship.
      Purchaser is a Citizen of the United States.

     

    (i) No
      Liens.
      No
      Lessor Liens attributable to Purchaser will attach in respect of all or any
      part
      of the Trust Estate as a result of the transactions contemplated by the Transfer
      Documents or the Transaction Documents.

     

    (j) Investment
      by Purchaser.
      Purchaser’s beneficial interest in the Trust Estate is being acquired by it for
      its own account, for investment and not with a view to any resale or
      distribution thereof, provided, however, that, subject to the restrictions
      on
      transfer set forth in Section 10 of the Participation Agreement, the
      disposition by Purchaser of its beneficial interest in the Trust Estate shall
      at
      all times be within its control. 

     

    (k) ERISA.
      No part
      of the funds to be used by Purchaser to acquire the Equity Interest directly
      or
      indirectly constitute assets of an “employee benefit plan” as defined in section
      3.3(d) of the Employee Retirement Income Security Act of 1974, as amended,
      or a
“plan” within the meaning of Section 4975(e)(1) of the Internal Revenue
      Code of 1986, as amended.

     

    (l) Securities
      Laws.
      Neither
      Purchaser nor any Person authorized to act on its behalf has directly or
      indirectly offered any beneficial interest in or security relating to the
      ownership of the Aircraft or any interest in the Trust Estate, or any Equipment
      Note or any other interest in or under the Trust Indenture for sale to, or
      solicited any offer to acquire any of the same from, any Person in violation
      of
      applicable securities Laws.

     

    (m) Sales
      Tax Matters.
      Purchaser agrees to cooperate with and assist Seller in taking such actions
      as
      may be necessary in order to eliminate or minimize the imposition of any sales,
      use or other transfer taxes arising as a result of the transactions contemplated
      herein.

     

    ARTICLE
      V

    RESERVED
      RIGHTS

     

    Section
      5.1 Reserved
      Rights.
      Purchaser will be entitled to all benefits and rights of Owner Participant
      (subject to Seller’s retention of the Reserved Rights), pursuant to any and all
      Transaction Documents in respect of the period from and after the Closing Date.
      Seller hereby reserves, and nothing contained herein shall be construed as
      a
      sale, conveyance, assignment or transfer of Reserved Rights.

     

    Section
      5.2 Allocation
      of Amounts.
      If
      Purchaser or Owner Trustee shall receive any amount relating to any Transaction
      Document or any of the transactions contemplated thereby to 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    which
      Seller is entitled under Section 5.1, Purchaser shall promptly remit or
      shall cause the Owner Trustee to remit such amount to Seller (together with,
      to
      the extent not paid over within ten Business Days, interest at the then-
      applicable average rate for federal funds from and including the date of receipt
      by Purchaser or Owner Trustee, as the case may be, to but excluding, the date
      of
      payment to Seller) and, until so delivered, any such amount received shall
      be
      received and held in trust by Purchaser or Owner Trustee, as the case may be,
      for the benefit of Seller. If Seller shall receive any amount relating to any
      Transaction Document or any of the transactions contemplated thereby to which
      Purchaser or Owner Trustee is entitled under Section 5.1, Seller shall
      promptly remit such amount to Purchaser or Owner Trustee, as the case may be
      (together with, to the extent not paid over within ten Business Days, interest
      at the then-applicable average rate for federal funds from and including the
      date of receipt by Seller to, but excluding, the date of payment to Purchaser
      or
      Owner Trustee, as the case may be), and until so delivered any such amount
      received by Seller shall be received and held in trust by Seller for the benefit
      of Purchaser or Owner Trustee, as the case may be.

     

    Section
      5.3 Indemnification.
      (a)
      Purchaser shall have no liability or obligation as a result of, and Seller
      shall
      indemnify and hold Purchaser harmless on an after-tax basis against, and shall
      be liable for and shall pay any loss, cost or other expense arising out of
      (i) any failure by Seller to comply with the terms of the Transaction
      Documents to which it is a party prior to the Closing Date, (ii) any
      liabilities or obligations of Seller under the Transaction Documents required
      to
      be satisfied or performed prior to the Closing Date or (iii) a breach by
      Seller of any of its representations or warranties contained in any of the
      Transfer Documents.

     

    (b) Seller
      shall have no liability or obligation as a result of, and Purchaser shall
      indemnify and hold Seller harmless on an after-tax basis against, and shall
      be
      liable for and shall pay any loss, cost or other expense arising out of
      (i) any failure by Purchaser to comply with the terms of the Transaction
      Documents on or after the Closing Date, (ii) any liabilities or obligations
      of Purchaser required to be satisfied or performed under the Transaction
      Documents on or after the Closing Date or (iii) a breach by Purchaser of
      any of its representations or warranties contained in any of the Transfer
      Documents.

     

    Section
      5.4 Mutual
      Cooperation.
      Seller
      and Purchaser shall provide each other with such assistance as may reasonably
      be
      requested by either of them in writing in connection with the preparation of
      any
      tax return, any audit or other examination by any taxing authority, or any
      judicial or administrative proceedings relating to liability for Taxes, and
      each
      will retain and, upon the request of the other, provide the other with any
      records or information which may be relevant to such return, audit or
      examination or proceedings. Such assistance shall include making employees
      available on a mutually convenient basis to provide additional information
      and
      explanation of any material provided hereunder. The party requesting assistance
      hereunder shall reimburse the other for reasonable out-of-pocket expenses
      incurred by the other in providing such assistance.

     

    ARTICLE V  

     

    MISCELLANEOUS

     

    Section
      6.1 Transaction
      Costs.
      Regardless of whether the transactions contemplated hereby are consummated,
      (A) Purchaser agrees to pay all costs, expenses and fees (collectively,

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    “Costs”)
      incurred by it (including, without limitation, fees and disbursements of counsel
      and/or special counsel to Purchaser) in connection with the transaction
      contemplated hereby, and (B) Seller agrees to pay all Costs incurred by it
      in connection with the transaction contemplated hereby (including, without
      limitation, any and all fees and commissions of AirCapital Aviation Services,
      LLC (“AirCapital”), fees and disbursements of counsel and/or special counsel to
      Seller and any and all Costs incurred by each of Lessee and Owner Trustee in
      connection with the transactions contemplated hereby). Each of Seller and
      Purchaser agrees to pay one-half of the fees and expenses of special FAA counsel
      for services rendered in connection with the transaction contemplated
      hereby.

     

    Section
      6.2 Brokers,
      Finders, Etc.
      Seller
      states and represents to Purchaser that it has dealt with AirCapital who was
      acting as Seller’s broker or finder in connection with the transaction
      contemplated hereby and that AirCapital is entitled to a brokerage fee,
      financial advisory fee, commission or finder’s fee in connection with this
      transaction. Purchaser
      states and represents to Seller that it has dealt with no broker or finder
      in
      connection with the transaction contemplated hereby, no broker or Person acting
      on such a party’s behalf is entitled to any brokerage fee, financial advisory
      fee, commission or finder’s fee in connection with this transaction. Each of
      Seller and Purchaser agrees to indemnify and hold harmless the other for, from
      and against any and all loss, liability, damage, cost, claim or expense
      (including, without limitation, attorneys’ fees) incurred by reason of any
      commission, brokerage fee, financial advisory fee or finder’s fee alleged to be
      payable because of any act, omission or statement of the indemnifying party.
      

     

    Section
      6.3 Announcements.
      Purchaser and Seller shall consult with each other regarding press releases
      or
      other public announcements related to the Transfer Documents and the
      transactions contemplated hereby.
      One or
      more of the owners of Seller will file SEC Form 8-Ks in connection with this
      transaction.

     

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

     

    Section
      6.5 Amendments,
      Etc.; Entire Agreement.
      Except
      as otherwise specifically provided herein, this Agreement and the other Transfer
      Documents contain the entire agreement of the parties with respect to the
      subject matter hereof and thereof, and supersede all prior agreements and
      understandings between the parties, whether written or oral. Neither this
      Agreement nor any of the terms hereof may be terminated, amended, supplemented,
      waived or modified orally, but only by an instrument which purports to
      terminate, amend, supplement, waive or modify this Agreement, or any of the
      terms hereof, signed by the party against which the enforcement of the
      termination, amendment, supplement, waiver or modification is sought. The
      schedules and exhibits attached to this Agreement constitute a part of this
      Agreement and are incorporated herein by reference as if set forth in full
      in
      the main body of this Agreement.

     

    Section
      6.6 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their successors and permitted assigns. Neither party may assign its rights
      hereunder without the prior written consent of the other party prior to the
      Closing Date (and any such attempted assignment without such consent shall
      be
      void).

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    Section
      6.7 Governing
      Law; Submission to Jurisdiction.
      (a)
      THIS AGREEMENT, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
      SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
      LAWS
      OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE IN SUCH STATE, WITHOUT
      GIVING EFFECT TO PRINCIPLES RELATING TO CONFLICTS OF LAW.

     

    (b) Each
      of
      Seller and Purchaser irrevocably agrees that any legal suit, action or
      proceeding arising out of or relating solely to this Agreement or the Assignment
      and Assumption Agreement (or any document referred to herein or therein) or
      the
      transactions contemplated hereby or thereby or the subject matter hereof or
      thereof, shall be instituted in the state or federal courts in the borough
      of
      Manhattan, City of New York, State of New York, and it hereby irrevocably
      waives, to the fullest extent permitted by law, any objection which it may
      have
      now or hereafter to the laying of the venue or the jurisdiction or the
      convenience of the forum of any such legal suit, action or proceeding and
      irrevocably submits generally and unconditionally to the jurisdiction of any
      such court but only in any such suit, action or proceeding. Each of Seller
      and
      Purchaser further irrevocably agrees to the service of process of any of the
      aforementioned courts but only in any suit, action or proceeding of the nature
      referred to above by the mailing of the copies thereof by certified mail,
      postage prepaid, return receipt requested, to it at its address specified in
      section 6.9 hereof (as the same may be changed from time to time pursuant
      to section 6.9 hereof), such service to be effective upon the date of
      receipt indicated on the postal receipt returned from it.

     

    (c) Subject
      to any right of appeal, final judgment against Seller or Purchaser in any suit
      shall be conclusive, and may be enforced in other jurisdictions by suit on
      the
      judgment, a certified or true copy of which shall be conclusive evidence of
      the
      fact and of the amount of any indebtedness or liability of Seller or Purchaser,
      as the case may be, therein described.

     

    Section
      6.8 WAIVER
      OF JURY TRIAL.
      EACH
      PARTY HERETO HEREBY IRREVOCABLY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM
      OR
      CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR THE ASSIGNMENT
      AND ASSUMPTION AGREEMENT OR RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT,
      OR
      THE ASSIGNMENT AND ASSUMPTION AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED
      TO
      BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
      AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT
      LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
      COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER
      IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS
      ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH
      WILL
      CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY
      HERETO FURTHER WARRANTS AND REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER WITH
      ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
      TRIAL
      RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    WAIVER
      IS
      IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING,
      AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS OR MODIFICATIONS TO
      THIS
      AGREEMENT OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION.
      IN
      THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
      TO A TRIAL BY THE COURT.

     

    Section
      6.9 Notices,
      Etc.
      All
      notices, offers, acceptances, approvals, waivers, requests, demands and other
      communications hereunder or under any instrument, certificate or other
      instrument delivered in connection with the transactions described herein shall
      be in writing, shall be addressed as provided below and shall be considered
      as
      properly given (a) if delivered in person, (b) if sent by reputable
      overnight delivery service, (c) in the event overnight delivery services
      are not readily available, if mailed by first class United States mail, postage
      prepaid, registered or certified with return receipt requested, or (d) if
      sent by telecopier and confirmed in writing by any other manner described above.
      Notice so mailed shall be effective upon the earlier of actual receipt or the
      expiration of five (5) days after its deposit. Notice given in any other
      manner shall be effective upon receipt by the addressee; provided,
      however,
      that if
      any notice is tendered to an addressee and the delivery thereof is refused
      by
      such addressee, such notice shall be effective upon such tender. For the
      purposes of notice, the address of the parties shall be as set forth below;
      provided
      that
      either party shall have the right to change its address for notice hereunder
      to
      any other location by the giving of prior notice to the other party in the
      manner set forth hereinabove. The initial addresses of the parties hereto are
      as
      follows:

     

    If
      to
      Purchaser:

    

    Dougherty
      Air Trustee, LLC

    90
      South
      Seventh Street, Suite 4300

    Minneapolis,
      MN 55402-4108

    Telephone: (612)
      376-4005

    Telecopier: (612)
      317-2045

    

    with
      a
      copy to:

     

    Kevin
      Johnson, Esq.

    Fafinski,
      Mark & Johnson

    775
      Prairie Center Drive, Suite 400

    Minneapolis,
      MN 55344

    Telephone: (952)
      995-9500

    Telecopier: (952)
      995-9577

    

    If
      to
      Seller:

    

    PLM
      CAL
      II LLC

    c/o
      PLM
      Investment Management, Inc.

    405
      Lexington Avenue, 67th
      Floor

    New
      York,
      NY 10174 

    Telephone: (212)
      682-3344

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    Telecopier: (212)
      682-3464

    

    and
      to:

    

    c/o
      Semele Group

    200
      Nyala
      Farm Road

    Westport,
      CT 06880

    Attention:
      James A. Coyne

    Telephone:
      (203) 341-0515

    Telecopier:
      (203) 341-9988

    

    with
      a
      copy to:

     

    John
      Todd, Esq.

    Todd
      & Levi, LLP

    444
      Madison Avenue

    Suite
      1202

    New
      York,
      NY 10022

    Telephone: (212)
      308-7400 (x24)

    Telecopier: (212)
      308-8450

    

    Section
      6.10 Severability
      of Provisions.
      Any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof or affecting the validity or enforceability of such provision
      in any other jurisdiction.

     

    Section
      6.11 Headings,
      Etc.
      The
      headings and the table of contents used herein are for convenience of reference
      only and shall not define or limit any of the terms or provisions
      hereof.

     

    Section
      6.12 Further
      Assurances; Confidentiality.
      (a)
      Seller and Purchaser shall do and perform such further acts and execute and
      deliver such further instruments as may be required by Applicable Law or
      reasonably requested by either party to carry out and effectuate the purposes
      of
      this Agreement and the Assignment and Assumption Agreement.

     

    (b) Purchaser
      and Seller agree that any and all information of any kind obtained pursuant
      to
      this Agreement that shall not then be or have become generally available shall
      be kept and maintained in strictest confidence, and shall not be disclosed
      or
      disseminated to any other Person, except (A) as otherwise required by any
      Transaction Document, (B) to any regulatory agency, (C) in response to
      any subpoena or other legal process, (D) to any prospective successor or
      assign which has agreed with such party that, upon disclosure of such
      information, such prospective successor or assign shall be bound by the
      provisions of this Section 6.12(b), (E) as part of any filing to be
      made with any Governmental Authority and (F) to attorneys, accountants and
      financial, insurance and other independent advisors of any such
      party.

     

    Section
      6.13 Survival.
      The
      representations, warranties, covenants and indemnities of the parties contained
      in this Agreement shall survive execution and delivery hereof

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

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

     

    *
      *
      *

     

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Purchase Agreement (N14645) to be duly executed
      and delivered as of the date first above written.

     

    
      	 	
               PLM
                CAL I LLC,
                Seller

               

               

              By:
                _____________________________

               

              Name:
                ___________________________

               

              Its:
                ______________________________

               

            
	 	
              DOUGHERTY
                AIR TRUSTEE, LLC,
                Purchaser

               

               

              By:
                _____________________________

               

              Name:
                ___________________________

               

              Its:
                ______________________________

               

            

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      1

     

    TRANSACTION
      DOCUMENTS

     

    
      	
              1.

            	
              Trust
                Agreement 645, dated as of September 30, 1997, between Ballston Aero
                Trust
                Services, L.C., as Owner Participant, and Wells Fargo Bank Northwest,
                N.A.
                as successor to First Security Bank, N.A., as Owner
                Trustee.

            

    

    

    
      	
              2.

            	
              Trust
                Indenture and Mortgage 645, dated as of September 30, 1997, between
                Wells
                Fargo Bank Northwest, N.A. as successor to First Security Bank, N.A.,
                as
                Owner Trustee and Wilmington Trust Company, as
                Mortgagee.

            

    

    

    
      	
              3.

            	
              Lease
                Agreement 645, dated as of September 30, 1997, between Wells Fargo
                Bank
                Northwest, N.A. as successor to First Security Bank, N.A., as Lessor
                and
                Continental Airlines, Inc., as
                Lessee.

            

    

    

    
      	
              4.

            	
              Lease
                Supplement No. 1, dated September 30, 1997, between Wells Fargo Bank
                Northwest, N.A. as successor to First Security Bank, N.A., as Lessor
                and
                Continental Airlines, Inc., as
                Lessee.

            

    

    

    
      	
              5.

            	
              Participation
                Agreement 645, dated as of September 30, 1997, among Continental
                Airlines,
                Inc., as Lessee, Ballston Aero Trust Services, L.C., as Owner Participant,
                Wells Fargo Bank Northwest, N.A. as successor to First Security Bank,
                N.A., as Owner Trustee and Wilmington Trust Company, as Mortgagee,
                Subordination Agent and Pass Through
                Trustee.

            

    

    

    
      	
              6.

            	
              Tax
                Indemnity Agreement 645, dated as of September 30, 1997, between
                CIT Group
                Inc. as successor to AT&T Credit Corporation, and Continental
                Airlines, Inc.

            

    

    

    
      	
              7.

            	
              Assignment
                and Assumption Agreement (N14645), dated as of August 26, 2004, by
                and
                between Ballston Aero Trust Services, L.C. and PLM CAL I
                LLC.

            

    

    

    
      	
              8.

            	
              Partial
                Assignment and Assumption Agreement (N14645), dated as of November
                15,
                2004, between CIT Communications Finance Corporation, as successor
                to
                AT&T Credit Corporation and PLM CAL I
                LLC.

            

    

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

     

    SCHEDULE
      2

    FINANCIAL
      INFORMATION

    

    

    ACQUISITION
      PRICE

    

    $3,500,000

    

    

    INDEBTEDNESS

    (as
      of November 22, 2006)

    

    
      	
              Principal

            	
              Interest

            	
               Total

            
	
              $11,414,155.77

            	
              $120,644.77

              Per
                diem interest after 11/22/2006: $2,365.58

            	
              $11,534,800.54Exhibit 10.1

    
      

      

    

    Exhibit
      10.1 

    PURCHASE
      AND SALE AGREEMENT

     

    December
      4, 2006

     

    This
      Purchase and Sale Agreement (“Agreement”), is made and entered into as of this
      4th day of December, 2006, by and among CAPITAL LEASE LIMITED (“Purchaser”), a
      Hong Kong corporation, having a place of business at 1107 West Tower, Shun
      Tak
      Centre, 200 Connaught Road Central, HONG KONG, SAR, and CAPITAL LEASE GmbH
      (in
      part, as Guarantor), on the one hand, and PLM FINANCIAL SERVICES, INC., a
      corporation of the State of Delaware, USA (“FSI”), on its own behalf and as
      successor in interest to PLM TRANSPORTATION EQUIPMENT CORPORATION, a dissolved
      corporation of the State of California USA, 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 LIQUIDATING TRUST, on the other hand (collectively, the trusts
      identified above are referred to herein as “Seller”), having a place of business
      at 405 Lexington Avenue, 67th
      Floor,
      New York City, New York 10014 USA. FSI is the sole trustee of the three
      affiliated liquidating trusts.

     

    WITNESSETH

     

    WHEREAS,
      Seller is the owner of Seventeen Thousand Twenty-two
      (17,022)
      marine
      cargo containers, as further identified and described in Schedules 1, 2, and
      3,
      to Exhibit “A” to this Agreement. The marine cargo containers are leased by
      Seller to Purchaser under the terms of various lease agreements (the “Leases”
identified in Schedule 4 to Exhibit “A” ) and the exhibits, schedules, annexes,
      riders and certificates thereto and therewith; and

     

    WHEREAS,
      Seller is desirous of selling, and Purchaser is desirous of purchasing, the
      Seventeen Thousand Twenty-two (17,022)
      marine
      cargo containers (collectively, “Equipment” and individually, a “Container”),
      identified and described in Exhibit “A,” leased to Purchaser under the terms of
      the Leases; and

     

    WHEREAS,
      Purchaser is willing to purchase from Seller and Seller is willing to sell
      to
      Purchaser the Equipment for a purchase price of Nine Hundred Fifty and no/100
      United States Dollars (USD 950.00) per financial twenty-foot equivalent unit
      [“TEU”] (the “Purchase Price per TEU”), upon the terms and conditions
      hereinafter set forth. The aggregate number of TEU to be sold and purchased
      hereunder is Twenty-two Thousand Five Hundred Sixty-two and 22/100
      (22,562.22);

     

    NOW
      THEREFORE, in consideration of the mutual agreements herein contained and for
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto agree as follows:

     

    1. Sale
      and
      Purchase. Subject to the terms of this Agreement, Seller agrees to sell, and
      Purchaser agrees to purchase, the Equipment for, and in consideration of, the
      “Aggregate Purchase Price.” For purposes of calculating the Aggregate Purchase
      Price , a twenty-foot (20’) dry container will be one (1) TEU, a forty-foot
      (40’) dry container will be One and 61/100 (1.61) TEU, and a forty-foot high
      cube container will be One and 71/100 (1.71) TEU. The Aggregate Purchase Price
      is Twenty-one
      Million Four Hundred Thirty-four Thousand One Hundred Nine and no/100 United
      States Dollars (USD 21,434,109.00). The allocation of the 

     

    
      
        
        

      

      
        1

      

      
        
        

      

    

    Aggregate
      Purchase Price and TEU for each equipment pool of Purchaser is attached as
      Schedule 5 to Exhibit “A”.

     

    2. Closing
      Date. Subject to the satisfaction of all conditions precedent to the sale of
      the
      Equipment, Seller and Purchaser hereby agree to consummate this transaction
      and
      deliver the Equipment on December 4, 2006 (the “Closing Date”), or such other
      date as may be mutually agreeable to the parties. Provided all conditions to
      closing have been met, Purchaser is instructed to deliver the Aggregate Purchase
      Price and other sums required to be paid by Purchaser hereunder, by wire
      transfer of good United States funds to the account of Seller in the bank
      identified in Exhibit “B.” Complete wiring instructions from Seller are attached
      hereto as Exhibit “B.” Delivery shall be deemed to occur in Hamburg, Germany, by
      delivery of the Bill of Sale, irrespective of the actual physical location
      of
      the Equipment, or any of it, immediately upon the Closing without any further
      action by Seller. The “Closing” is the proceedings and deliveries to occur on
      the Closing Date. All conditions and deliveries to occur at the Closing shall
      be
      deemed to occur simultaneously, and none shall be deemed to have occurred unless
      all have occurred.

     

    3. Condition
      of Equipment. THE
      EQUIPMENT IS SOLD AND PURCHASED “AS-IS, WHERE-IS”, WITH ALL FAULTS, WITHOUT
      WARRANTY AS TO QUALITY OR CONDITION, AND SELLER MAKES NO WARRANTY OF THE
      MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE EQUIPMENT. Seller
      disclaims any and all liability to Purchaser or any other person with respect
      to
      the quality or condition of the Equipment, including, without limitation, any
      liability in tort (for negligence or otherwise), and strict liability relating
      thereto, including any liability for special, punitive or consequential damages,
      such as, but not limited to, loss of use or lost profits.
      

     

    4. Closing
      Conditions for the Benefit of Seller. Seller’s obligations hereunder are subject
      to the satisfaction, on the Closing Date, of the following conditions,
      compliance with which Seller may waive:

     

    (a) The
      representations and warranties of Purchaser contained in this Agreement shall
      be
      true in all material respects on the Closing Date as though such representations
      and warranties were made as of such date. Purchaser shall have performed and
      complied with all of the terms and conditions required to be performed and
      complied with by Purchaser prior to the Closing Date.

     

    (b) There
      shall have been no material default in the obligations of Purchaser under any
      of
      the Leases, and no event shall have occurred which, but for the giving of notice
      or lapse of time would be an event of material default under any of the
      Leases.

     

    (c) Purchaser
      shall have furnished to Seller an executed Secretary’s (or other qualified
      officer’s) Certificate in the form of Exhibit “D” in regard to this Agreement,
      and all other agreements, documents and certificates contemplated hereunder
      to
      be executed by Purchaser.

     

    (d) Purchaser
      shall then have outstanding a valid commitment from a bank or financial
      institution, reasonably satisfactory to Seller, to provide up to eighty-five
      per
      cent (85%) of the Aggregate Purchase Price at Closing.

     

    5. Closing
      Conditions for the Benefit of Purchaser. Purchaser’s obligations hereunder are
      subject to the satisfaction by or on the Closing Date of the following
      conditions, compliance with any of which Purchaser may waive:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (a) Seller
      shall have delivered executed Bills of Sale to Purchaser in the form of Exhibit
      “C” to this Agreement.

     

    (b) Seller
      shall have furnished to Purchaser an executed Secretary’s Certificate in the
      form of Exhibit “D” in regard to this Agreement, and all other agreements,
      documents and certificates contemplated hereunder to be executed by
      Seller.

     

    (c) Seller’s
      representations and warranties contained in this Agreement, or as otherwise
      made
      by Seller pursuant hereto, shall be true in all material respects on the Closing
      Date as though such representations and warranties were made as of such Closing
      Date.

     

    6. Representations
      and Warranties of Purchaser. Purchaser represents and warrants to Seller as
      follows, which representations and warranties shall continue in full force
      and
      effect each and every day, to and including the Closing Date:

     

    (a) Authorization
      of Agreement. Purchaser has taken all corporate action required by applicable
      Hong Kong law, Purchaser’s Memorandum and Articles of Association (hereinafter
“Charter”) or otherwise, to authorize the execution and delivery of this
      Agreement and the consummation of the transactions contemplated hereby, and
      this
      Agreement has been duly executed and delivered by Purchaser and constitutes
      the
      valid, legally binding obligation of Purchaser, enforceable in accordance with
      its terms, subject only to (x) the enforcement of remedies as may be limited
      by
      bankruptcy, insolvency, moratorium, or other similar laws affecting the
      enforcement of creditors’ rights generally, and (y) the scope of equitable
      remedies which may be available.

     

    (b) Effect
      of
      Agreement. Except as contemplated by this Agreement, the execution, delivery
      and
      performance of this Agreement by Purchaser and the consummation by Purchaser
      of
      the transactions contemplated by this Agreement will not, with or without the
      giving of notice or the lapse of time, or both, conflict with, or result in
      a
      breach of, or constitute a default under the terms of any provision of the
      Charter of Purchaser, or any instrument or obligation to which Purchaser is
      a
      party or is bound, or to which the Equipment is subject, nor to Purchaser’s
      knowledge, will this Agreement violate any existing statute, order, writ,
      injunction, or decree of any court, administrative agency or governmental
      body.

     

    (c) Restrictions:
      Burdensome Agreements. Purchaser is not a party to any contract, commitment,
      or
      agreement, nor is any of the Equipment subject to or bound or affected by,
      a
      Charter or other corporate restriction, or, to the knowledge of Purchaser,
      any
      order, judgment, decree, law, statute, ordinance, rule, regulation, or other
      restriction of any kind or character other than those set forth herein which
      would prevent Purchaser from entering into this Agreement or from consummating
      the transactions contemplated hereby.

     

    (d) Governmental
      and Other Consents. No authorization or approval of, or exemption by, any
      governmental, public or self-regulatory body or authority is required in
      connection with the execution, delivery and performance by Purchaser of this
      Agreement, or any of the instruments or agreements referred to herein, or the
      taking of any action herein contemplated.

     

    (e) No
      Default. No material default or event of default (as defined therein) has
      occurred and is continuing under any of the Leases, nor, to the best knowledge
      of Purchaser, has any event occurred which, but for the giving of notice or
      lapse of time, or both, would be a material event of default under any of the
      Leases.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    7. Representations
      and Warranties of Seller. Seller represents and warrants to Purchaser as
      follows, which representations and warranties shall continue in full force
      and
      effect each and every day to and including the Closing Date.

     

    (a) Organization,
      Authority and Authorization. FSI is a corporation duly organized, validly
      existing and in good standing under the laws of the State of Delaware, USA,
      and
      is sole Trustee of each of the liquidating trusts named in the preamble to
      this
      Agreement. FSI has full power to carry on its business and to enter into the
      Agreement and to consummate the transactions contemplated hereby as Trustee.
      This Agreement has been duly executed and delivered by FSI; and constitutes
      the
      valid, legally binding obligation of Seller enforceable in accordance with
      its
      terms, subject only to (x) the enforcement of remedies as may be limited by
      bankruptcy, insolvency, moratorium or other similar laws affecting the
      enforcement of creditors’ rights generally, and (y) the scope of equitable
      remedies which may be available.

     

    (b) Effect
      of
      Agreement. The execution, delivery, and performance of this Agreement by Seller,
      and the consummation by Seller of the transactions contemplated hereby will
      not
      conflict with, or result in any breach of, or constitute a default under the
      terms of, any provisions of any instrument or obligation to which Seller is
      a
      party or is bound or to which its assets are subject, nor will this Agreement
      violate any existing statute, order, writ, injunction or decree of any court,
      administrative agency or governmental body.

     

    (c) Title
      to
      Equipment. On the Closing Date, Seller will own good, indefeasible and
      marketable title in and to the Equipment, free and clear of any mortgage,
      pledge, lien, claim, security interest, charge, option or encumbrance of any
      nature whatsoever created by or through Seller, and Seller shall have the full
      right and power to sell, transfer and assign the Equipment without
      restriction.

     

    (d) Restrictions:
      Burdensome Agreements. Seller is not a party to any contract, commitment, or
      agreement, nor is any of the Equipment subject to or bound or affected by,
      a
      Charter or other corporate restriction, or, to the knowledge of Seller, any
      order, judgment, decree, law, statute, ordinance, rule, regulation, or other
      restriction of any kind or character other than those set forth herein which
      would prevent Seller from entering into this Agreement or from consummating
      the
      transactions contemplated hereby.

     

    (e) Governmental
      and Other Consents. No authorization or approval of, or exemption by, any
      governmental, public or self-regulatory body or authority is required in
      connection with the execution, delivery and performance by Seller of this
      Agreement, or any of the instruments or agreements referred to herein, or the
      taking of any action herein contemplated.

     

    8. Indemnification.

     

    (a) Indemnification
      by Seller. Seller hereby covenants and agrees with Purchaser to indemnify
      Purchaser, its directors, officers, agents, employees and shareholders, and
      each
      of its successors and assigns (individually, an “Indemnified Party”), and hold
      them harmless from, against and in respect of any and all costs, losses, claims,
      liabilities, fines, penalties, damages and expenses (including interest which
      may be imposed in connection therewith, and court costs and reasonable fees
      and
      disbursements of counsel) (collectively, “Damages”) incurred by any of them in
      connection with any material breach of any of the representations, warranties,
      covenants or agreements made by Seller in this Agreement or any document
      delivered in connection with the transactions contemplated hereby.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (b) Indemnification
      by Purchaser. Purchaser hereby covenants and agrees with the Seller to indemnify
      Seller, its directors, officers, agents, employees and shareholders, and each
      of
      its successors and assigns (individually, an “Indemnified Party”), and hold them
      harmless from, against and in respect of any and all Damages incurred by any
      of
      them in connection with:

     

    (i) any
      failure by Purchaser to pay or otherwise comply with its obligations under
      this
      Agreement (including any under Section 10); or

     

    (ii) any
      material breach of any of the representations, warranties, covenants or
      agreements made by Purchaser in this Agreement or any document delivered in
      connection with the transactions contemplated hereby.

     

    (c) Right
      to
      Defend, Etc. Within forty-five (45) days after the written assertion against
      an
      Indemnified Party by a third person of a claim or liability which would entitle
      the Indemnified Party to indemnification under Section 8(a) or 8(b), as the
      case
      may be, the Indemnified Party shall give written notice of the claim to the
      party obligated to indemnify it (the “Indemnifying Party”). Failure to give such
      notice, or delay materially prejudicial to the interests of the Indemnifying
      Party, shall release the Indemnifying Party of any obligation of indemnification
      with respect to such claim or liability. Upon receipt of timely notice, the
      Indemnifying Party shall undertake the responsibility for the defense of such
      claim, at its own expense. The Indemnified Party shall have the right to
      participate at its own expense and through counsel of its own choosing in
      contesting and defending against any such claim and in any litigation,
      proceedings, or settlement negotiations with respect thereto. If, within fifteen
      (15) days after delivery of the notice of claim by the Indemnified Party, the
      Indemnifying Party fails to advise the Indemnified Party of its agreement to
      contest and defend against any such claim or if the Indemnifying Party does
      not
      participate in such litigation, proceeding or settlement negotiations, for
      any
      reason, then the Indemnified Party shall have the right, at the Indemnifying
      Party’s expense, to take such action as it deems appropriate to defend, contest,
      settle or compromise any such claim or liability, and the Indemnifying Party
      agrees to be bound by any and all rulings, judgments, compromises, and
      settlements reached by the Indemnified Party in good faith, in the same manner
      as if it participated therein.

     

    (d) Payment.
      Each Indemnifying Party agrees to reimburse each Indemnified Party pursuant
      to
      this Section 8 within thirty (30) days after presentation of an itemized
      statement of Damages incurred by such Indemnified Party, provided the
      Indemnified Party has first complied with Section 8(c) hereof.

     

    (e) Settlement.
      Except as provided in Subsection 8(c), no Indemnified Party shall be entitled
      to
      indemnification under this Section 8 if such Indemnified Party voluntarily
      makes
      any payment in respect of, settles or offers to settle, or consent to any
      compromise or admits liability with respect to, any third party claim without
      the prior consent (which consent shall not be unreasonably withheld or delayed)
      of the Indemnifying Party.

     

    9. Additional
      Payments by Purchaser. In addition to the Aggregate Purchase Price, at the
      Closing, Purchaser shall deliver:

     

    (a) Rentals
      for the Equipment at the aggregate rate for all the Equipment of Eleven Thousand
      Four Hundred fourteen and 20/100 United States Dollars (USD 11,414.20) per
      day
      from (but not including) June 30, to (and including) November 23, 2006, and
      Four
      Thousand One Hundred Ten and no/100 United States Dollars (USD 4,110.00) from
      (but not including November 23, to (and including) the Closing
      Date;

    

    (b) An
      amount
      equal to Purchaser’s share of the expenses provided in Section 11(f) of this
      Agreement. Seller shall provide an estimate of such amount not less than five
      (5) days prior to the Closing Date;

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (c) For
      the
      avoidance of doubt: (i) the Leases shall continue to apply to the Equipment
      (except for the amount of rents as provided in Section 9(a)) until the Closing
      Date, and after December 31, 2006, if the Closing has not occurred by that
      date;
      and (ii) if rentals are paid by Purchaser pursuant to Section 9(a) of this
      Agreement, the rentals stated in the Leases shall not apply up to and including
      the Closing Date. Nothing in this Article 9 shall be deemed to imply that the
      rentals do not revert to the rates stated in the Leases if this Agreement is
      terminated by Seller pursuant to Section 11(i).

     

    10. Post-Closing
      Obligations. 

     

    (a) Immediately
      upon satisfaction of all the conditions to Closing by Purchaser (including,
      but
      not limited to, delivery of the Aggregate Purchase Price and other sums provided
      in Article 9), and delivery of the Bills of Sale by Seller, the Leases shall
      be
      deemed terminated.

     

    (b) Pending
      the Closing, Seller shall have the right to retain all collateral security
      arrangement and deposits until all sums required to be paid by Purchaser
      pursuant to Section 9(a), including the Aggregate Purchase Price, and any
      amounts accrued prior to June 30, 2006, have been timely paid. All deposits
      will
      be repaid and collateral security arrangements terminated on or before ten
      (10)
      days following receipt by Seller of the last payment due from Purchaser. Any
      guaranty of the obligations of Purchaser by Capital Lease GmbH (formerly
‘Capital’ Lease-Transportmittal GmbH) (“Capital”) shall remain in effect until
      all such obligations have been fully satisfied. Furthermore, Seller shall
      continue to have the inspection and audit rights Seller enjoyed under the Leases
      until such time as all sums remaining unpaid hereunder shall have been paid
      in
      full. 

     

    (c) For
      the
      avoidance of doubt, the liabilities of Purchaser for the indemnities contained
      in the Leases (and the guaranty thereof by Capital) shall survive the purchase
      of the Equipment and the transactions contemplated by this Agreement, including,
      but not limited to the termination of the Leases.

     

    11. Miscellaneous.

     

    (a) The
      terms
      of this Agreement shall not be waived, altered, modified, amended, supplemented,
      or terminated in any manner whatsoever except by written instrument signed
      by
      Purchaser and by Seller, and such alteration, modification, amendment,
      supplement or termination shall only be effective in the specific instance
      and
      for the specified purpose given.

     

    (b) Any
      provision of this Agreement, which may be determined by competent authority
      to
      be prohibited or unenforceable in any jurisdiction, shall as to such
      jurisdiction, be ineffective as to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions hereof. To the
      extent permitted by applicable law, Purchaser and Seller each hereby waives
      any
      provision of law which renders any provision hereof prohibited or unenforceable
      in any respect.

     

    (c) This
      Agreement shall be construed in accordance with, and shall be governed by the
      laws of the State of California, USA, except its choice of law rules, and shall,
      in all respects, be deemed to be a contract of such State. The
      United Nations Convention on Contracts for the International Sale of Goods
      (the
“Vienna Convention”) shall not apply to the transactions contemplated by this
      Agreement. Each of Seller, Purchaser,
      and
      Capital hereby consents to the non-exclusive personal jurisdiction of the
      Federal and California state courts in San Francisco, California, in the
      interpretation of this Agreement and the enforcement thereof, and hereby
      irrevocably appoints the Secretary of State of California as its agent for
      service of process in any action brought in such courts to enforce this
      Agreement. The prevailing party in such proceedings shall be entitled to recover
      its reasonable fees and expenses incurred in connection therewith, including
      its
      attorney’s fees and expenses.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (d) Each
      of
      the parties hereto shall, from time to time, do and perform such other and
      further acts and execute and deliver any and all such other and further
      documents as may be reasonably requested by the other party to establish and
      carry out the intents and purposes of this Agreement.

     

    (e) This
      Agreement shall be binding on and inure to the benefit of the parties hereto
      and
      their respective successors and assigns. However, neither party may assign,
      hypothecate, convey or otherwise transfer this Agreement, or any of its right
      or
      obligations thereunder, to any person, firm or corporation, without the express
      prior written consent of the other (which consent shall not be unreasonably
      withheld, delayed or conditioned), except that Seller may transfer interests
      in
      this Agreement and its rights thereunder to any of its affiliated investment
      programs without such consent from Purchaser, provided that Seller has first
      given notice thereof to Purchaser and the assignee has executed this
      Agreement.

     

    (f) Each
      of
      the parties hereto shall bear its own expenses in connection with this
      Agreement; except (i) Seller and Purchaser shall each pay one-half (1⁄2) the legal
      fees and other expenses, including reasonable disbursements for travel and
      subsistence, of Dawe & Christopherson LLP incurred with respect to the
      transactions contemplated by this Agreement (whether or not the Closing occurs);
      and (ii) Purchaser shall pay one-half (1⁄2) of the reasonable travel and
      subsistence expenses of the representative of Seller incurred in connection
      with
      the transactions contemplated by this Agreement, provided that the prior consent
      of Purchaser shall be required to such expenses for any representative of
      Purchaser more than one.

     

    (g) Time
      is
      of the essence of this Agreement.

     

    (h) Any
      notice, demand or any other instrument required or authorized by this Agreement
      to be served on or given shall be sufficiently served or given for all purposes
      (i) when personally delivered to any officer of the party to whom it is
      addressed or (ii) when sent by reputable overnight courier (such as Federal
      Express or DHL) or (iii) when sent by facsimile transmission, electronically
      confirmed, addressed to each party at its address set forth below:

     

    If
      to
      Purchaser:

     

    Capital
      Lease Limited

    1107
      West
      Tower

    Shun
      Tak
      Centre 

    200
      Connaught Road Central

    Hong
      Kong
      SAR, PRC

    Attention:
      Lulu Poon, Managing Director

    FAX:
      +852-2548-3816

     

    Copy
      to:

     

    Capital
      Lease GmbH

    Harvestehuder
      Weg 18

    20148
      Hamburg

    GERMANY

    Attention:
      Chairman

    FAX:
      +49-40-41477922

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    If
      to
      Seller:

     

    PLM
      Financial Services, Inc.

    405
      Lexington Avenue 67th
      Floor

    New
      York
      City, New York 10174 USA

    Attention:
      Richard K Brock

    FAX:
      +1-212-682-3464

    

    (i) This
      Agreement shall be terminated and of no further force or effect (except for
      the
      obligations of Purchaser under Section 11(f)) if the Closing Date and the
      Closing shall have not occurred on or before December 31, 2006.

     

    (j) The
      liabilities of the parties for a breach of the representations and warranties
      and the indemnities herein shall survive the purchase of the Equipment and
      the
      transactions contemplated by this Agreement.

     

    (k) Seller
      and Purchaser each represent to the other that no brokerage fees or finder’s
      fees or commissions are due to any third party in connection with this
      transaction.

     

    (l) This
      Agreement, and the exhibits, schedules and certificates attached hereto or
      delivered herewith represent the complete and exclusive statement of the
      understandings of the parties with respect to their subject matter and it and
      they shall not be varied or amended except in accordance with Section 11(a),
      nor
      shall parol evidence be admitted to explain any terms thereof.

     

    (m) As
      between Purchaser and Seller, Purchaser shall assume the liability for tax
      (not
      including any net income tax of any other party) imposed as a result of the
      sale
      of the Equipment under this Agreement, such as a sales or use tax, value added
      tax, goods and services tax, stamp tax or other tax or impost in the nature
      thereof, including attorney fees and expenses of proceedings to contest such
      tax
      (all such taxes, imposts, fees and expenses, hereinafter, “Tax”). Seller shall
      give Purchaser notice of an attempt to collect a Tax, and Purchaser shall have
      the right, upon giving Seller written notice thereof, to institute protest
      or
      other proceedings or litigation to contest the applicability or amount of the
      Tax, and Seller shall, if requested by Purchaser, appoint Purchaser as its
      agent
      and attorney-in-fact to act in its name, place and stead in such proceedings.
      Upon the final determination of the applicability or amount of the Tax, or
      both,
      promptly upon written demand, Purchaser shall pay the Tax in full. A “final
      determination” for these purposes shall be a final order of an administrative
      body, whether or not appealable, or a final judgment of a court of competent
      jurisdiction, without regard for any right of appeal therefrom. “Final” means
      not subject to further proceedings in the body or court in which such contest
      proceedings are held.

     

    (n) This
      Agreement may be executed in one or more counterparts, which shall, however,
      constitute but one and the same Agreement.

     

    

    

     

    [This
      space intentionally left blank]

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

     

    

      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
        executed by their respective officers duly authorized as of the day and year
        first set forth above.

       

      

        PLM
          FINANCIAL SERVICES, INC.

        

        By: _________________________

        Richard
          K
          Brock

        Chief
          Financial Officer

        

        Seller:

        

        PLM
          EQUIPMENT GROWTH FUND VI LIQUIDATING TRUST

        

        and

        

        PLM
          EQUIPMENT GROWTH & INCOME FUND VII LIQUIDATING TRUST

        

        and

        

        PROFESSIONAL
          LEASE MANAGEMENT INCOME FUND I LIQUIDATING TRUST

        

        BY:
          

        

        PLM
          FINANCIAL SERVICES, INC.,

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

        

        By: ___________________________

        Richard
          K
          Brock

        Chief
          Financial Officer

        

        Purchaser:

        

        CAPITAL
          LEASE LIMITED

        By: __________________________

        __________________________

        Title
          ______________________

      

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Guarantor:

    

    CAPITAL
      LEASE GmbH (as to Sections 10(b), 10(c) and 11(c))

    

    By: __________________________

    

    __________________________

    Chairman

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    Exhibits

     

    “A” Equipment
      Schedules and Leases

     

    “B” Seller
      Funding Instructions

     

    “C” Form
      of
      Bill of Sale

     

    “D” Form
      of
      Certificate

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