Document:

EXHIBIT 4.8

TAT Warrant Agreement

                                WARRANT AGREEMENT

THIS WARRANT  AGREEMENT (the  "Agreement"),  is made as of the 15th day of June,
2004 BY AND BETWEEN

(1)  TAT Technologies Ltd. ("TAT"), an Israeli public company,  whose shares are
     traded on Nasdaq; and

(2)  TA-TOP,  Limited Partnership  ("TATOP"), a limited partnership wholly owned
     by (x)  TA-TEK  Ltd.,  an Israeli  private  company,  wholly  owned by FIMI
     Opportunity Fund, L.P., a limited  partnership formed under the laws of the
     State  of  Delaware,  and by  (y)  FIMI  Israel  Opportunity  Fund  Limited
     Partnership, a limited partnership,  registered in Israel (the "Opportunity
     Fund").

WHEREAS

(a)  On the date hereof,  TAT and TATOP are entering  into (i) a Share  Purchase
     Agreement (the "SPA"),  pursuant to which TATOP shall purchase from TAT, at
     the Closing (as defined in the SPA) 857,143 Ordinary Shares of TAT, nominal
     value NIS 0.90 each,  and (ii) a Credit Line  Agreement  (the  "Credit Line
     Agreement"),  pursuant to which TATOP shall make  available to TAT a Credit
     Line (as defined  therein),  all subject to the terms and  conditions  more
     fully set forth therein.

(b)  In  connection  with the  foregoing,  TAT  agrees  to grant  TATOP,  at the
     Closing, a non-assignable Warrant (the "Warrant") to purchase up to 500,000
     Ordinary  Shares of TAT,  nominal  value NIS 0.90 per share  (the  "Warrant
     Shares"),  for an aggregate amount of US$ 4,250,000 (the "Warrant Amount"),
     all subject to the terms and conditions hereof.

Therefore,  in  consideration  of the  foregoing,  TAT and the TATOP,  for value
received, hereby agree as follows:

1.   Issue of Warrant.

1.1 General.  At the Closing (as defined in the SPA), TAT will authorize,  issue
and deliver to TATOP the Warrant to purchase the Warrant  Shares for the Warrant
Amount.

1.2 No Rights as  Shareholder.  Nothing  contained  in this  Agreement or in the
Warrant  shall,  prior to an  exercise  thereof,  as  stipulated  hereunder,  be
construed as  conferring  upon TATOP or its  Permitted  Transferees  (as defined
below) any rights as a shareholder of TAT,  including  (without  limitation) the
right to vote, receive  dividends,  consent or receive notices in respect of any
meeting  of  shareholders  for the  election  of  directors  of TAT or any other
matter.  For purposes of this  Agreement,  "Permitted  Transferees"  shall mean:
TATOP's  partners  or the  shareholders  or  partners  (as  applicable)  of such
partners, or any entity solely and irrevocably

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TAT Warrant Agreement

controlled by TA-TEK Ltd., FIMI 2001 Ltd. or by Mr. Ishay Davidi (for so long as
Mr. Davidi  remains the CEO or equivalent  position in  Opportunity  Fund or any
successor fund).

2.   Exercise; Exercise Price.

     (a) The  Exercise  Price  per  each  Warrant  Share  shall be  US$8.5  (the
"Exercise Price"), subject to the adjustments set forth below.

     (b) TATOP may exercise the Warrant, in whole or in part (provided that each
exercise shall be of at least 25,000  Warrant Shares (the "Minimum  Quantity")),
at any time and from time to time  (each,  an  "Exercise")  during the  Exercise
Period  (as  defined  in  Section 3 below)  by  delivering  a written  Notice of
Exercise  (the "Notice of Exercise")  to TAT,  specifying  the number of Warrant
Shares underlying the exercised  portion of the Warrant,  together with the full
payment in cash (to a bank  account  to be  designated  by TAT) of the  Exercise
Price  due  to  TAT  with  respect  to  such  Warrant   Shares  (the   "Exercise
Consideration"),  and the  Warrant  Certificate,  which in the case of a partial
exercise, will be replaced by a new Warrant Certificate, as more fully set forth
below. For purposes of this Agreement,  the date on which the Notice of Exercise
is delivered to TAT shall be referred to as the "Exercise Date".

     (c) Exercise on a Net-Issuance Basis.

In  lieu  of  payment  to TAT of the  Exercise  Consideration  as set  forth  in
subsection  (a) above,  TATOP may inform TAT in the Notice of  Exercise  that it
elects to  exercise  the Warrant on a  net-issuance  basis,  in which case,  the
Warrant shall be exercisable, in whole or in part (provided that "Y" below shall
not be less than the Minimum Quantity), at any time and from time to time during
the Exercise Period,  into the number of Warrant Shares  calculated  pursuant to
the formula set forth below.  In such notice,  TATOP will specify the amount for
which TATOP desires to exercise the Warrant.

Formula:

                     X =   Y x (A - B)
                           -----------
                                A

                     Where:

                     X =     the number of Warrant Shares to be issued to TATOP;
                     Y =     the number of Warrant Shares obtainable upon
                             exercise of the relevant
                             portion of the Warrant;
                     A       = the average closing price of an Ordinary
                             Share of TAT on Nasdaq over a thirty (30)
                             trading days preceding the exercise date;
                             and
                     B       = the Exercise Price of the Warrant Shares,
                             as adjusted pursuant to the provisions
                             contained herein.

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TAT Warrant Agreement

3.  Exercise  Period.  TATOP may  exercise  part (but not less than the  Minimum
Quantity as set forth above) or all of the Warrant,  at any time,  and from time
to time, until the termination of the 66 month period commencing at the Closing.

4.   Warrant Shares.

     4.1 Reservation of Warrant Shares.  TAT represents that it will reserve and
at all times  keep  reserved,  so long as any  portion  of the  Warrant  remains
outstanding, out of its authorized share capital, such number of Ordinary Shares
as may be subject to purchase under the outstanding Warrant.

     4.2 Issue.  By no later than seven (7) business days following the Exercise
Date and (unless TATOP elects to exercise the Warrant on a  Net-Issuance  Basis)
payment of the Exercise Consideration as set forth in Section 2 above, TAT shall
issue and cause to be delivered to TATOP or, upon the written order of TATOP, to
any third party as TATOP may  designate,  a  certificate  or  certificates  (the
"Warrant Share  Certificate") of the number of full Warrant Shares so purchased,
together  with  cash,  as  provided  in  Section  5.6  hereof in  respect of any
fractional Warrant Shares otherwise  issuable upon such surrender.  Such Warrant
Shares, delivered upon Exercise, shall be duly authorized, validly issued, fully
paid and nonassessable,  shall not be subject to call,  forfeiture or preemptive
rights and shall be  delivered  free and clear of all  Encumbrances  (as defined
below).

The term  "Encumbrance"  means and includes any interest or equity of any person
(including  any  right  to  acquire,  option,  or right  of  preemption)  or any
mortgage,  charge,  pledge,  lien, or  assignment,  or any other  encumbrance or
security  interest or arrangement  of whatsoever  nature over or in the relevant
property.

Such Warrant Share Certificates shall be deemed to have been issued and any
person so designated to be named therein shall be deemed to have become a holder
of record of such securities as of the Exercise Date and payment of the Exercise
Consideration, to the extent applicable, notwithstanding that the Warrant Share
Certificates representing such securities shall not actually have been delivered
or that the stock transfer books of TAT shall then be closed. In the event of a
partial exercise of the Warrant at any time prior to the expiry of the Exercise
Period, a new certificate evidencing the remaining amount applicable to the
Warrant will be issued by TAT.

     4.3 Payment of Taxes. TAT will pay all stamp duty, if any,  attributable to
the issuance of the Warrant Shares.

5. Adjustment of Exercise Price and Number of Warrant Shares. The Exercise Price
and/or the number and type of  securities  purchasable  upon the exercise of the
Warrant shall be subject to  adjustment  from time to time upon the happening of
certain events, as follows:

     5.1. Adjustments.

          5.1.1 If TAT subdivides or combines its Ordinary Shares,  the Exercise
               Price shall be proportionately reduced or increased, as

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TAT Warrant Agreement

               applicable,  as at the  effective  date  of such  subdivision  or
               combination,  or if TAT fixes a record date for the purpose of so
               subdividing or combination,  as at such record date, whichever is
               earlier.

          5.1.2 If TAT at any time (i) makes a  distribution  of bonus shares or
               (ii) issues by  reclassification  of its  Ordinary  Shares  other
               securities of TAT, then the number of Warrant Shares  purchasable
               upon exercise of the Warrant  immediately  prior thereto shall be
               adjusted  so that TATOP shall be entitled to receive the kind and
               number  of  Warrant  Shares or other  securities  of TAT which it
               would  have  owned  or  would  have  been   entitled  to  receive
               immediately  after the occurrence of any of the events  described
               above,  had the Warrant been exercised  immediately  prior to the
               occurrence of such event or any record date with respect thereto.
               Any  adjustment  made  pursuant  to this  subsection  5.1.2 shall
               become  effective  immediately  after the effective  date of such
               event retroactive to the record date, if any, for such event. For
               the avoidance of doubt, if the  distribution or  reclassification
               is eventually  called-off,  the adjustment  made pursuant to this
               Section  shall  be  cancelled  as  of  the  announcement  of  the
               cancellation of such distribution or  reclassification.  Whenever
               the number of Warrant Shares purchasable upon the exercise of the
               Warrant is  adjusted,  as herein  provided,  the  Exercise  Price
               payable upon the  exercise of such  Warrant  shall be adjusted by
               multiplying  such  Exercise  Price   immediately  prior  to  such
               adjustment  by a fraction,  the  numerator  of which shall be the
               number of Warrant  Shares  purchasable  upon the  exercise of the
               Warrant immediately prior to such adjustment, and the denominator
               of which  shall be the  number of Warrant  Shares so  purchasable
               immediately thereafter.

          5.1.3 If at any time TAT shall distribute a dividend in liquidation or
               partial liquidation or by way of return of capital, or a dividend
               payable  out  of  earnings  or  surplus  legally   available  for
               dividends (each, a  "Distribution"),  the Exercise Price shall be
               reduced by an amount equal to the per-share distribution actually
               paid  by TAT  as of the  date  fixed  for  the  purpose  of  such
               Distribution;  provided,  however,  that if the  Distribution  is
               eventually  called  off,  the  adjustment  made  pursuant to this
               section shall be cancelled as of such announcement.

     5.2.  Merger;  Consolidation.  In the event that TAT  consolidates  with or
merge with or into another corporation or convey all or substantially all of its
assets to another  corporation or other entity,  then, in each such case, TATOP,
upon any exercise of this Warrant,  at any time after the  consummation  of such
consolidation,  merger, or conveyance,  shall be entitled to receive, in lieu of
the Warrant  Shares  receivable  upon the exercise of the Warrant  prior to such
consummation, the shares or

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TAT Warrant Agreement

other  securities  or  property  to which it would have been  entitled  upon the
consummation of such consolidation, merger or conveyance if it had exercised the
Warrant immediately prior thereto, all subject to further adjustment as provided
in this Section, and the successor or purchasing  corporation or other entity in
such  consolidation,  merger or  conveyance  (if not TAT) shall duly execute and
deliver  to  TATOP a  supplement  hereto  acknowledging  such  corporation's  or
entity's  obligations under the Warrant; and in each such case, the terms of the
Warrant (including the exercisability and adjustment  provisions of the Warrant)
shall be  applicable to the shares or other  securities  or property  receivable
upon the exercise of the Warrant after the  consummation of such  consolidation,
merger or conveyance.

     5.3  No   Impairment.   TAT   will   not,   through   any   reorganization,
recapitalization,  transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action,  avoid or seek to avoid the
observance  or  performance  of any of the  terms to be  observed  or  performed
hereunder by TAT, but both parties will at all times in good faith assist in the
carrying out of all the  provisions  of this  Agreement and in the taking of all
such action as may be  necessary or  appropriate  in order to protect the rights
hereunder against impairment.

     5.4 No  Fractional  Shares.  No  fractional  shares  shall be  issued  upon
exercise of all or any portion of a Warrant, and the number of Warrant Shares to
be issued  shall be rounded to the nearest  whole share (with cash being paid by
TAT for any unissued fractional shares).

     5.5  Notice  of  Adjustment.  Upon the  occurrence  of each  adjustment  or
readjustment  of the Exercise Price or the number of Warrant Shares  pursuant to
this Section 5, TAT, at its expense,  shall promptly  compute such adjustment or
readjustment  in  accordance  with the terms  hereof and  prepare and furnish to
TATOP a certificate setting forth each adjustment or readjustment and showing in
detail the facts  upon  which such  adjustment  or  readjustment  is based.  The
certificate  shall also set forth (i) the Exercise  Price at the time in effect,
and (ii)  the  amount,  if any,  of other  property  which at the time  would be
received upon the conversion of the outstanding Warrant.

     5.6 Notices of Record Date or Payment  Date.  In the event of any taking by
TAT of a record of the  holders of any class of  securities  for the  purpose of
determining  the  holders  thereof  who are  entitled  to receive  any  dividend
(including a cash dividend) or other  distribution,  any right to subscribe for,
purchase or otherwise acquire any shares of any class or any other securities or
property, or to receive any other right, TAT shall mail to TATOP a notice, which
shall be sent  simultaneously with the notice sent to other shareholders of TAT,
specifying  the date on which any such record  and/or  scheduled  date of actual
payment,  if  determined,  is to be  taken  for the  purpose  of such  dividend,
distribution  or  right,   and  the  amount  and  character  of  such  dividend,
distribution or right.

6.   Miscellaneous.

     6.1.  Notices.  Any notice  pursuant to this  Agreement  by TAT or by TATOP
shall be in writing and shall be deemed to have been duly given (i) if given by

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TAT Warrant Agreement

facsimile transmission (to the fax numbers set forth herein) on the business day
on which such  transmission is sent and confirmed,  or (ii) if given by mail (to
the addresses  set forth  herein),  two business days  following the date it was
sent.

Each  party may from time to time  change  the  address  or fax  number to which
notices to it are to be  delivered or mailed  hereunder by notice in  accordance
herewith to the other party.

Addresses and Facsimile Numbers:
--------------------------------

TA-TOP, Limited Partnership
c/o TA-TEK Ltd., its general partner
c/o FIMI 2001 Ltd.
"Rubinstein House"
37 Petach Tikva Road
Tel: 03-5652244
Fax: 03-5652245

With a copy to:
Sharon Amir, Adv.
Naschitz, Brandes & Co.
5 Tuval Street
Tel-Aviv 67897
Israel
Facsimile:  +972-3-623-5021

TAT: TAT Technologies Ltd.
Industrial Zone, Yasur, Gedera, 70700
PO Box. 80 (70750)
Facsimile Number: [                 ]

With a copy to: J. Zaltzman,
J. Zaltzman & Co.
6 Hahilazon Street, Ramat-Gan 52522
Facsimile: 03-6111801
Attn: Adv. Yossi Zaltzman

     6.2 Assignment;  Successors. Except as set forth below, TATOP may not sell,
assign  or  transfer  the  Warrant  or any  portion  or right  thereof.  Nothing
contained herein shall be construed as limiting,  in any way, the right of TATOP
to sell,  assign or  otherwise  transfer  the  Warrant  Shares,  subject  to the
provisions of applicable law.

Notwithstanding  the above, upon the liquidation or dissolution of TATOP,  TATOP
may transfer the Warrant to its Permitted  Transferees;  provided,  however that
FIMI 2001 Ltd. shall at all time continue to represent the Permitted Transferees
(as defined in Section 1.2 above), pursuant to an irrevocable power of attorney,
for all purposes of this

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TAT Warrant Agreement

Agreement and the Warrant.

     6.3.  Governing Law. This  Agreement  shall be governed by and construed in
accordance with the laws of the State of Israel.  The parties hereto irrevocably
submit to the  exclusive  jurisdiction  of the courts of  Tel-Aviv in any action
connected with this Agreement.

     6.4.  Benefits  of this  Agreement.  Nothing  in this  Agreement  shall  be
construed  to give to any  person or  corporation  other  than TAT and TATOP any
legal or equitable right,  remedy or claim under this Agreement.  This Agreement
shall be for the sole and exclusive benefit of TAT and TATOP.

     6.5. Form of Warrant.  The text of the Non-Assignable  Warrant  Certificate
evidencing the Warrant (the "Warrant  Certificate")  and of the form of election
to purchase  Warrant  Shares  shall be  substantially  as set forth in Exhibit 1
attached hereto. The Exercise Price and,  accordingly,  number of Warrant Shares
issuable  upon  exercise  of the  Warrant  is  subject  to  adjustment  upon the
occurrence of certain events, all as herein provided.

     6.6. Warrant Certificate.

          6.6.1 Mutilated or Missing  Warrant.  In case the Warrant  Certificate
     shall be mutilated, lost, stolen or destroyed, TAT shall, at the request of
     the affected TATOP,  issue and deliver in exchange and substitution for and
     upon  cancellation  of  the  mutilated   certificate  or  in  lieu  of  and
     substitution  for  the  certificate  lost,  stolen  or  destroyed,   a  new
     non-assignable  Warrant  Certificate  representing  an equivalent  right or
     interest, but only upon receipt of evidence reasonably  satisfactory to TAT
     of such loss, theft or destruction of such Warrant Certificate.

          6.6.2 Entire Agreement; Amendment and Waiver.

     This Agreement and the Exhibits and Schedules hereto and thereto constitute
     the full and entire  understanding  and agreement  between the parties with
     regard  to  the  subject  matters  hereof.  All  prior  understandings  and
     agreements among the parties are void and of no further effect. Any term of
     this Agreement may be amended,  waived, or discharged (either prospectively
     or retroactively,  and either generally or in a particular instance),  by a
     written instrument signed by all the parties to this Agreement.

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TAT Warrant Agreement

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

TAT Technologies Ltd.
By:    _______________________
Name:  _______________________
Title: _______________________

TA-TOP, Limited Partnership.

By: TA-TEK Ltd., its general partner
Name and Title:

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TAT Warrant Agreement

EXHIBIT 1

Non-Assignable Warrant Certificate No. ________

WARRANT TO PURCHASE ORDINARY SHARES

VOID AFTER 5:00 p.m. ISRAEL TIME, ON [                ].

                              TAT Technologies Ltd.

INCORPORATED UNDER THE LAWS OF THE STATE OF ISRAEL

This  certifies  that,  for  value  received,  TATOP,  Limited  Partnership  the
registered   holder  hereof   ("TATOP"),   is  entitled  to  purchase  from  TAT
Technologies Ltd. ("TAT"), at any time during the Exercise Period (as defined in
the Warrant Agreement (the  "Agreement"))  commencing at 9.00 a.m., Israel Time,
on the first day of the  Exercise  Period and ending  before  5.00 p.m.,  Israel
Time, on the last day of the Exercise  Period,  500,000  Ordinary  Shares of TAT
(the "Warrant  Shares"),  at a purchase price per share of US$8.5 (the "Exercise
Price").  The number and type of  securities  purchasable  upon exercise of each
Warrant  evidenced  hereby and the Exercise Price shall be subject to adjustment
from time to time as set forth in the Agreement.

The terms of this Warrant are subject to the terms and  provisions  contained in
the Agreement.

The  Warrant  evidenced  hereby  may  be  exercised  in  whole  or  in  part  by
presentation of this Warrant Certificate with the Irrevocable Exercise Notice in
the form attached hereto,  duly executed (with a signature guarantee as provided
thereon) and, if not exercised on a  Net-Issuance  Basis as set forth in Section
2(b) of the Agreement, simultaneous payment of the Exercise Consideration at the
principal office of TAT. Payment of such Exercise Consideration shall be made at
the option of TATOP in cash or by bank check, in same day funds.

Upon any partial exercise of the Warrant evidenced hereby, there shall be signed
and issued, to TATOP, a new Warrant Certificate in respect of the balance of the
Warrant  Shares as to which the  Warrant  evidenced  hereby  shall not have been
exercised.  No  fractional  Ordinary  Shares will be issued upon the exercise of
rights to purchase  hereunder,  but TAT shall pay the cash value of any fraction
upon the exercise of one or more Warrant.

This Warrant is neither transferable nor assignable.

TAT Technologies Ltd.______

______________________________
ATTEST:_______________________

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TAT Warrant Agreement

Dated: __________
TAT Technologies Ltd.
Industrial Zone
Yasur, Gedera, 70780                                 Via Fax: _______
(POBox 80/70750)                                            and Registered Mail

IRREVOCABLE EXERCISE NOTICE

TA-TOP, Limited Partnership,  hereby irrevocably elects to exercise the right of
purchase represented by the Non-Assignable Warrant Certificate with respect to

________ [Note: not less than 25,000] Ordinary Shares (the "Shares"),  with cash
payment equal to the Exercise  Price of US$8.5 per share/on a Net Issuance Basis
(Please delete the non-applicable option)

and requests that certificates for the Ordinary Shares be issued in the name of:

(name and address must be printed or typewritten)
_____________________________
 TA-TOP, Limited Partnership,
_____________________________
Address

and, if the Shares shall be less than the total  number of Ordinary  Shares that
TATOP  is  entitled  to  purchase  pursuant  to  this  Warrant,  a  new  Warrant
Certificate  shall be registered  for the balance of the Ordinary  Shares in the
name of the undersigned and delivered to the address stated below.

Dated:      __________________

 TA-TOP, Limited Partnership

(Please Print)
Address:______________________________
        ______________________________
Signature: ___________________________

Note: The above signature must correspond with the name as written upon the face
of  this  Warrant  Certificate  in  every  particular,   without  alteration  or
enlargement or any change whatever.

Signature Witnessed:

                                       10EXHIBIT 4.9

                     MEMBERSHIP INTEREST PURCHASE AGREEMENT

     MEMBERSHIP  INTEREST  PURCHASE  AGREEMENT (the "Agreement ") dated the 24th
day  of  May,  2005  between  Limco-Airepair,   Inc.,  an  Oklahoma  corporation
(hereinafter  referred to as the "Purchaser"),  and Claude L. Buller,  Thomas W.
Ferrell, Paul R. Hilliard and Jim Taylor (collectively referred to as "Members")
and Piedmont  Aviation  Component  Services,  L.L.C.,  a North Carolina  limited
liability company (hereinafter  referred to as "Company",  and collectively with
the Members referred to as "Seller").

                                    RECITALS

         A. Members are the owners of all outstanding ownership units evidencing
their  membership  interest in the Company as have been issued by the Company as
follows:

                                         Units Owned     Percentage
                 Claude L. Buller          9,900             33%
                 Paul R. Hilliard          9,900             33%
                 Thomas W. Ferrell         9,900             33%
                 Jim Taylor                  300             01%
                                           -----             ---
                 TOTAL ISSUED AND
                 OUTSTANDING UNITS        30,000            100%

which units of  membership  interests  are fully paid and non  assessable by the
Company.

         B. The Company  conducts  business as an authorized  and fully licensed
and/or authorized or recommended aviation Repair Station or authority for, among
others,  Honeywell Aerospace,  McCauley and Hartzell Propeller, in the overhaul,
repair,  maintenance,  service and supply of, among other products,  Propellers,
Landing Gear and APU/LRU units, and products made in its machine shop with metal
finishing capability, as well as supplying parts through brokerage some of which
products and activities are limited in scope by the United States  Department of
Transportation,  Federal  Aviation  Administration  Air Agency  Certificate Nos.
QKPR504X (issued August 10, 2004) and QWPR503X (issued  September 21, 2004), all
of which  licenses,  certificates  and authorities are fully and properly issued
and are not now  suspended,  revoked,  or in  default  or  under  suspension  or
revocation  proceedings  or  notifications.  (hereinafter  referred  to  as  the
"Company's Business")

         C. The Purchaser  desires to purchase all units of membership  interest
from the Members free and clear of any and all liens, judgments, orders, decrees
or  encumbrances  of any kind in order to have 100% ownership of the Company and
thus  acquire all of the  Company's  business  free an clear of all liens debts,
obligations  of  whatever  kind  or  character  except  for  those   obligations
specifically  assumed by the  Purchaser  as are  hereinafter  described  in this
Agreement (e.g.,  obligations  identified in the audited financial  statement of
December 31, 2004 and acquired in the normal course of business  since that date
to date of Closing as is specifically described hereinafter).

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MEMBERSHIP INTEREST AGREEMENT
Page 2

         D.  Upon  execution  of  this  Agreement  by the  parties  hereto,  the
foregoing  recitals  A, B, and C shall be deemed to be true and  correct  and to
form a material part of the inducement for Purchaser to enter this Agreement.

         NOW,  THEREFORE,   in  consideration  of  the  covenants,   agreements,
representations,  and warranties contained in this Agreement, the parties hereto
hereby agree as follows:

                                   ARTICLE I.
                   PURCHASE AND SALE OF MEMBERSHIP INTERESTS;
                   COMPANY'S BUSINESS; PURCHASE PRICE; CLOSING

         1.1 Purchase and Sale of Membership Interests. Subject to the terms and
conditions  of this  Agreement,  on the  Closing  Date (as  defined  herein) the
Members shall sell, transfer,  convey, assign, and deliver to the Purchaser, and
the Purchaser shall purchase,  acquire,  and accept from the Members, all of the
Member's  right,  title,  and interest in and to the  membership  interest (also
referred  to as  "ownership  units") of the  Company  (and any  evidence of such
ownership  such as  certificates),  the purpose  being to vest in the  Purchaser
title to all of the  ownership  units,  right and interest in the  Company;  the
Purchaser thereby becoming the sole member and owner of the Company, and as such
indirectly  acquiring  all of the assets  owned and  controlled  by the Company,
inclusive  of  any  and  all  intellectual   property,   trade  names,  patents,
copyrights,  proprietary  information,  trade secrets, rolling stock, equipment,
inventory,  goods,  materials of every kind as are used, employed and stored for
the purpose of operating the Company's Business.

         1.2 Excluded Assets. No assets owned by the Company are excluded from
this sale.

         1.3 Assumption of Liabilities or Obligations.  Notwithstanding anything
to the contrary in this Agreement, the Company shall retain and remain obligated
for and the Purchaser, as the sole member and owner of the Company, shall assume
all  liabilities  or  obligations  of the Company  accruing,  accrued and as are
disclosed in the Audited  Financials  dated  December 31, 2004, as well as those
debts and obligations entered into or incurred in the normal course of operating
the business of the Company from and after December 31, 2004 until Closing,  and
as are fully set forth on the monthly Financial  Statements of the Company since
December 31, 2004 (which have been provided to the Purchaser  prior to Closing),
or as are  recorded  in  Company's  normal  business  records,  (e.g.,  accounts
payable,  payroll  ledger and the like  records  has have been  supplied  to the
Purchaser prior to Closing) and/or the Disclosure Schedule 1.3 Assumed Debts and
Obligations,  which is attached and made a part hereof.  No other liabilities of
the Company are assumed and shall be deemed to be  undisclosed  liabilities  and
subject to the indemnity provisions of Article IX of this Agreement in the event
of subsequent claims for payment lodged against the Purchaser.

                  (a) At  Closing,  Purchaser  shall pay and satisfy in full all
financial  obligations of the Company under that Promissory Note executed by the
Company  and  payable to Blue Ridge  Investors,  II Limited  Partnership,  dated
November 18, 2002, in the original amount of $2,000,000.00, as the same may have
been modified or amended from time to time.

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MEMBERSHIP INTEREST AGREEMENT
Page 3

                  (b) At  Closing,  Purchaser  shall pay in full and satisfy all
obligations of the Company under that Credit and Security  Agreement executed by
the Company, as Borrower, and Whitehall Business Credit Corporation,  as Lender,
on November  15, 2002,  and the  documents  and  instruments  pursuant  thereto,
including  that  Revolving  Credit  Note in the  original  principal  amount  of
$7,500,000.00;  that  Term  Loan  Note  in  the  original  principal  amount  of
$675,000.00;  and that Capital  Expenditures Loan Note in the original principal
amount of  $500,000.00,  as the foregoing may have been modified or amended from
time to time. At Closing,  the  aggregate  amount of the  obligations  under the
above-described Whitehall loan shall not exceed $7,500,000.00.

         1.4 Purchase Price. The aggregate consideration for the Purchase of the
Membership   Interests  and   Company's   Business   transferred   to  Purchaser
("Transferred  Membership  Interest")  shall be  $5,500,000  payable  in cash or
certified funds at Closing.

                                   ARTICLE II.
                  REPRESENTATIONS AND WARRANTIES OF THE SELLER

         Except  as  otherwise  set  forth  in the  schedules  attached  to this
Agreement  by  reference  to specific  sections of this  Agreement  (hereinafter
collectively  referred to as the "Disclosure  Schedule"),  the Seller represents
and warrants to the Purchaser as set forth below:

         2.1 Organization and Good Standing.  The Company is a limited liability
company duly organized, validly existing, and in good standing under the laws of
the State of North Carolina, and (a) is duly qualified to transact business as a
limited  liability  company and is in good standing in every other  jurisdiction
within the United States in which the conduct of its business  requires it to be
so qualified, (b) to the extent it has its EASA Repair Certificate,  the Company
is duly qualified to transact  business as a limited liability company and is in
good  standing  in every  European  jurisdiction  in which  the  conduct  of its
business requires it to be so qualified,  and (c) to Seller's knowledge, is duly
qualified  to transact  business as a limited  liability  company and is in good
standing in every other jurisdiction  outside of the United States and Europe in
which the conduct of its business requires it to be so qualified.  Copies of the
Articles  and/or  Certificate  of  Organization  or Formation  and the Operating
Agreement of the Company and all amendments  thereto as presently in effect,  as
well as any minutes of Members' or managers' meetings, and requisite notices and
or waivers of notice fully endorsed have been delivered to the Purchaser and are
complete and correct as of the date hereof.

         2.2  Authorization.  Subject to receiving the approval of the Company's
managers,  the Seller has full power and authority to enter into this Agreement,
both individually,  and as authorized by the Members and managers of the Company
and as is allowable under the Company's Operating  Agreement),  inclusive of all
exhibits and schedules  hereto,  and all  agreements  contemplated  herein (this
Agreement  and  all  such  exhibits,   schedules,  and  other  agreements  being
collectively referred to herein as the "Acquisition Documents"),  to perform its
obligations hereunder and there under, to assign,  transfer, sale and convey the
units  of  Membership  Interest  purchased  hereunder,  and  to  carry  out  the
transactions

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MEMBERSHIP INTEREST AGREEMENT
Page 4

contemplated hereby and thereby. The Managers of the Company have taken, or will
take  before the  Closing  Date,  all actions  required  by law,  its  Operating
Agreement  or  otherwise to  authorize  (i) the  execution  and delivery of this
Agreement and the other Acquisition  Documents,  and (ii) the performance of its
obligations hereunder and there under. This Agreement has been duly executed and
delivered by the Seller and upon the  execution  and  delivery of the  remaining
Acquisition  Documents by a duly authorized Members and managers of the Company,
the remaining  Acquisition  Documents will have been duly executed and delivered
by the Seller,  and this Agreement is and such other Acquisition  Documents will
be, upon due  execution  and delivery  thereof,  the legal,  valid,  and binding
obligations of the Seller enforceable according to their terms

         2.3 Title to Ownership Units Transferred.  Except as set forth below in
this  Section  2.3,  the Members own and have good and  marketable  title to all
ownership units evidencing their Transferred Membership Interest, free and clear
of all Liens. Seller hereby specifically  discloses to Buyer (a) that Blue Ridge
Investors,  II  Limited  Partnership  holds  a  warrant  to  acquire  additional
membership  units in the  Company,  (ii)  that  there  are  restrictions  on the
transfer  of  the  Membership  Interest  contained  in the  Company's  Operating
Agreement,  and (iii) that there are rights of first refusal and restrictions on
the  transfer of the  Membership  Interest  contained  in that Loan and Purchase
Agreement between the Company and Blue Ridge Investors,  II Limited Partnership,
dated  November 18, 2002,  and an option in favor of Member Jim Taylor to obtain
up to five percent (5%) of all outstanding  Membership Interest. As specified in
Section 6.4, it is a condition  precedent to Closing this Agreement that (i) the
warrant and any other  rights or  interests  in the  Company  held by Blue Ridge
Investments  II, Limited  Partnership  shall be terminated and released and (ii)
Jim  Taylor  terminate  and  release  any and all  option  rights he may have to
acquire additional units of ownership or future Membership Interests.

         2.4 Title to Properties; Absence of Liens and Encumbrances. The Company
has good and  marketable  title to or a valid  leasehold  interest in all of its
properties  and assets,  tangible and  intangible,  free and clear of all liens,
mortgagees  and  encumbrances  except for (i) those set forth in the  Disclosure
Schedule 2.4, List of Liens,  Mortgages and other  Encumbrances  attached,  (ii)
liens for  current  taxes not yet due and  payable,  and (iii) such other  minor
imperfections of title and encumbrances,  if any, that do not, in the aggregate,
have a material adverse effect on the Company's  Business,  assets, or financial
condition of the Company (collectively hereinafter referred to as the "Permitted
Liens"). To Seller's  knowledge,  there is no material asset used or required by
the  Company in the  conduct of  Company's  Business,  which is not owned by the
Company or licensed  or leased to it  pursuant to one of the  licenses or leases
listed in Disclosure Schedule 2.6, List of Leases and Licenses.

         2.5 Owned Real Property. The Company and Sellers own no right, title or
interest in or to any real property (other than leasehold interests) nor do they
have  any  options  to  purchase  any  real  property  used  by the  Company  in
conjunction with operation and conduct of Company's Business.

         2.6  Leases.  Disclosure  Schedule  2.6,  List of Leases  and  Licenses
attached hereto contains a complete list of (i) each lease pursuant to which the
Company  leases,  as  lessee,  any real  property  interest  and (ii) each lease
pursuant to which the Seller leases, as lessee, any

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 5

type of  property  (real or  personal)  in which the  Purchaser's  inability  to
acquire the  Seller's  rights there under would have a material  adverse  effect
upon the business assets or financial  condition of the Company and in which the
rental  payments  pursuant  to such lease  exceed $ 10,000 per annum.  Each such
lease is valid and  binding  and is in full force and  effect,  subject  only to
exceptions  based  on  bankruptcy,   insolvency,  or  similar  laws  of  general
application,  and there are no existing defaults by any party to any such lease,
or any condition,  event, or act known to the Seller which, with notice or lapse
of  time  or  both,  would  constitute  such a  default.  Without  limiting  the
foregoing, the Seller is not in default under any of such leases, and the Seller
has not  received  any notice from any person  asserting a default by the Seller
under any such lease.

         2.7 No Violation.  Except as set forth on Disclosure Schedule 2.7, none
of (i)  the  execution  and  delivery  of  this  Agreement  or any of the  other
Acquisition  Documents by the Seller,  (ii) the performance by the Seller of its
obligations hereunder or there under, (iii) the consummation of the transactions
contemplated hereby or thereby after the Closing, will (A) violate any provision
of the Certificate of Organization or Formation Articles of the Company,  or the
Operating  Agreement  under which the Company  operates;  (B) violate,  or be in
conflict  with,  or  constitute  a  default  under or breach  of, or permit  the
termination  of, or cause the  acceleration  of the maturity of, any  indenture,
mortgage,  contract,  commitment,  debt,  or  obligation  of the  Seller,  which
violation,  conflict,  default,  breach,  termination,  or acceleration,  either
individually  or in the  aggregate  with all other such  violations,  conflicts,
defaults,  breaches,  terminations,  and  accelerations,  would  have a material
adverse effect on the operations,  business,  assets, or financial  condition of
the Company or the Transferred  Member Interests;  (C) except for the consent of
Managers, require the consent of any other party to or result in the creation or
imposition  of any Lien  upon any  property  or  assets  of the  Company  or the
Transferred   Membership  Interest  under  any  indenture,   mortgage  contract,
commitment,  debt or obligation of or to which the Seller is a party or by which
the Seller is bound;  (D) violate any statute,  law,  judgment,  decree,  order,
regulation,  or rule of any court or governmental  authority to which the Seller
or the Transferred  Membership  Interests are subject; or (E) result in the loss
of any material  license,  privilege,  or  certificate  benefiting  the Company.
Purchaser  acknowledges and agrees that the items listed on Disclosure  Schedule
2.7 are agreements  and  instruments to which the Company is a party (or permits
and licenses  held by the  Company),  which may be violated upon transfer of the
Transferred  Membership  Interest  by the  Members to  Purchaser,  and for which
Purchaser may need to obtain consent,  approval, or authorization.  As specified
in Section 5.4, it is a condition of this Agreement, it is a condition precedent
to Closing that Purchaser obtain such consents, approvals, or authorizations.

         2.8 Consents and Approvals of Governmental  Authorities.  Except as set
forth on Disclosure Schedule 2.8, no consent,  approval, or authorization of, or
declaration,  filing,  or  registration  with,  any  governmental  or regulatory
authority  is required to be made or obtained by the Seller in  connection  with
the execution,  delivery,  and performance of this Agreement or any of the other
Acquisition Documents by the Seller.  Purchaser acknowledges and agrees that the
items listed on  Disclosure  Schedule  2.8 are permits and licenses  held by the
Company, for which Purchaser may need to obtain governmental consent,  approval,
or  authorization.  As  specified  in Section  5.4,  it is a  condition  of this
Agreement,  it is a condition  precedent to Closing that  Purchaser  obtain such
consents, approvals, or authorizations.

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 6

         2.9 Financial Statements.

                  (a) Delivery.  The Seller has delivered to the Purchaser  true
and complete  copies of the Company's  audited  financial  statements  including
balance sheets,  statements of operations and retained earnings,  and statements
of changes in  financial  position,  as of and for the years ended  December 31,
2004 (the "Audited  Financials") as well as its un-audited financial statements,
including balance sheets,  statements of operations and retained  earnings,  and
statements  of changes in financial  position,  as of and for the months  and/or
quarters  from and after  December 31, 2004 until the month  preceding the month
Closing occurs, and thereafter  internally  generated financial statements up to
the date of Closing (such un-audited  financial  statements  (income and expense
statement,  as well as the balance  sheet) of the Company and any notes  thereto
being hereinafter referred to as the Company's "Financial Statements."

                  (b) Accuracy. The Audited Financials, Financial Statements are
materially  true and correct and fairly  present the financial  condition of the
Company as of the respective  dates thereof and the results of operations of the
Company  for the  periods  then  ended in  accordance  with  generally  accepted
accounting  principles  ("GAAP")  applied on a consistent  basis  throughout the
periods involved.

         2.10 Absence of Certain  Changes. Since the most recent  period of time
for which the  Financial Statements apply  and until the date  of  Closing,  the
Company has not:

                  (a)  Suffered  any  material  adverse  change  in its  working
capital,  condition  (financial or otherwise),  assets,  liabilities,  reserves,
business operations, or prospects;

                  (b) Suffered any damage, destruction, or loss, whether covered
by insurance or not, materially adversely affecting its business operations,  or
prospects, assets, or condition, financial or otherwise;

                  (c)  Permitted or allowed any of its property or assets (real,
personal,  or mixed,  tangible or  intangible)  to be subjected to any mortgage,
pledge, security interest, conditional sale, or other title retention agreement,
encumbrance,  lien, easement, claim, right of way, warrant, option, or charge of
any kind  (individually and collectively  hereinafter  referred to as a "Lien"),
except Permitted Liens;

                  (d)  Created  or  incurred  any  liability  (fixed,  absolute,
accrued,  contingent,  or otherwise)  except for unsecured  current  liabilities
incurred for other than money borrowed,  and liabilities under contracts entered
into in the ordinary course of business and for amounts and for terms consistent
with past practice;

                  (e) Canceled or compromised  any debts, or waived or permitted
to lapse,  any material  claims or rights,  or sold,  transferred,  or otherwise
disposed of any of its properties or assets (real,  personal, or mixed, tangible
or  intangible),  except in the ordinary  course of business and consistent with
past practice;

                  (f) Transferred or granted any concessions,  leases, licenses,
or agreements with respect to or disposed of or permitted to lapse any rights to
the use of any patent,

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 7

registered  trademark,  servicemark,  trade name,  or copyright  material to the
business of the Company (all of which are listed on Schedule  2.11), or disposed
of or disclosed to any person any material,  trade secret, formula,  process, or
know-how not theretofore a matter of public knowledge;

                  (g) Entered into any material commitment or transaction not in
the ordinary  course of business and  consistent  with past practice or made any
capital  expenditures  or commitments  for any additions to property,  plant, or
equipment that in the aggregate exceed $5,000;

                  (h)  Paid,  loaned,  or  advanced  any  amount  to,  or  sold,
purchased,  transferred,  or leased any properties or assets (real, personal, or
mixed,  tangible or  intangible)  to or from,  or entered into any  agreement or
arrangement  with, any of its Company Members,  managers,  or employees,  or any
family member of any of its members,  managers or employees, or any partnership,
company, corporation or other entity controlled by, controlling, or under common
control  with it, or any  partner,  officer,  director  or  employee of any such
corporation or other entity, or any such individual's family members;

                  (i) Purchased,  redeemed,  issued, sold, or otherwise acquired
or disposed of,  directly or  indirectly,  any  membership  interests,  options,
warrants,  bonds,  notes, or other securities,  or rights to purchase or convert
into any securities of the Company;

                  (j) Declared or paid, or set aside funds in  anticipation  of,
any dividends or other  distributions of Company funds for any Member or Manager
of the Company;

                  (k) Made any  acquisition  or  disposition of assets except in
the ordinary course of business, consistent with past practice;

                  (l)  Introduced  any  material  change  with  respect  to  the
operation  of  its  business,  including,  without  limitation,  its  method  of
accounting;

                  (m) Except for sales of inventories in the ordinary  course of
business, sold or otherwise disposed of, or entered into or agreed to enter into
any agreement or other  arrangement to sell or otherwise  dispose of, any of its
assets,  properties,  or  rights or any  agreement  or other  arrangement  which
requires  the consent of any party to the transfer  and  assignment  of any such
assets, properties, or rights;

                  (n) Paid or agreed to pay any bonus or  extraordinary  payment
to any  employee or Member  (including  payment by the Company of attorney  fees
related to this  transaction)  or  changed  or agreed to change in any  material
respect the compensation of any employee; or

                  (o)  Agreed,  whether in  writing or  otherwise,  to  take any
action  described  in this Section.

         2.11    Patents,  Trademarks,  Trade  Names.  Except   as set forth  on
 Disclosure  Schedule  2.11, the Seller owns, is licensed,  or otherwise has the
full  right to use all  patents,  trademarks,   servicemarks, trade  names,  and
copyrights used in the business of the Company as currently

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 8

conducted.  Disclosure Schedule 2.11, Intellectual Materials Owned or Controlled
by Company,  attached  hereto  contains a complete and accurate  list of (i) all
patents,  trademarks,   servicemarks,   trade  names,  copyrights,   technology,
know-how,  recipes,  and processes  used or proposed to be used by the Seller in
operation  of the  Company's  Business,  all  applications  therefore,  and  all
licenses and other agreements relating thereto, and (ii) all agreements relating
to technology,  know-how,  recipes,  or processes that the Seller is licensed or
authorized to use by others or licenses or authorizes  others to use.  Except as
set forth in any of such  licenses  or  agreements,  the Seller has the sole and
exclusive  right to use its  patents,  trademarks,  servicemarks,  trade  names,
copyrights,   technology,   know-how,   recipes,  and  processes  identified  in
Disclosure  Schedule 2.11 hereto,  and no consent of any third party is required
for the use  thereof by the  Company  upon  completion  of the  transfer  of the
Transferred  Membership  Interest to Purchaser.  No claims have been asserted by
any  person  to the use of any such  patents,  trademarks,  servicemarks,  trade
names, copyrights,  technology,  know-how, recipes, or processes, or challenging
or questioning the validity or  effectiveness  of any such license or agreement,
and the Seller knows of no valid basis for any such  claims.  The Seller has not
received any notice or is aware of any facts or alleged  facts  indicating  that
the use of such  patents,  trademarks,  servicemarks,  trade names,  copyrights,
technology,  know-how,  recipes,  or processes  by the Company  infringes on the
rights of any other person.  No additional  proprietary  rights other than those
listed on  Disclosure  Schedule  2.11  hereto are  necessary  or material to the
conduct the Company's Business.

         2.12  Litigation.  Disclosure  Schedule 2.12,  Litigation and Potential
Claims,  which is attached hereto sets forth all actions,  claims,  proceedings,
and  investigations  ("Actions"),   including  without  limitation  Actions  for
personal  injuries,  products  liability,  or breach of  warranty  arising  from
products  sold by the  Company,  pending  or to  Seller's  knowledge  threatened
against the Company, any properties or rights of the Company (including, without
limitation,  the patents,  trademarks,  servicemarks,  trade names,  copyrights,
technology,  know-how,  recipes, or processes listed in Disclosure Schedule 2.11
hereto),  or the  transactions  contemplated  by  this  Agreement  or any  other
Acquisition  Document  before  any  court,  arbitrator,   or  administrative  or
governmental body. To the best knowledge of the Seller, no state of facts exists
or has existed that would  constitute  grounds for the institution of any Action
against the Company or against  any  properties  or rights of the Company or the
transactions  contemplated by this Agreement or any other Acquisition  Document.
The  Seller is not  subject to any  judgment,  order,  or decree  entered in any
lawsuit  or  proceeding  that has  materially  adversely  affected,  or that can
reasonably  be  expected  to  materially   adversely  affect,  the  transactions
contemplated  by this  Agreement,  the  Seller,  or the  Transferred  Membership
Interest in the Company,  including,  without limitation, the Company's Business
practices  and its  ability to acquire any  property or conduct  business in any
way.

         2.13 Tax  Returns and  Payments.  All of the tax returns and reports of
the Company or respecting  the  operations of the Company  required by law to be
filed on or before the date hereof  have been duly and timely  filed or extended
and all taxes  shown as due  thereon  have been  either  paid or are  accrued in
liquid form and saved for future payment thereof. There are in effect no waivers
of any applicable statute of limitations  related to such returns.  No liability
for any tax will be imposed  upon the  Transferred  Membership  Interest  in the
Company  or the  Company's  Business  or its assets  with  respect to any period
before the Closing Date for which there is not an adequate reserve  reflected in
the balance sheet and

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 9

held in cash form. The  provisions of this Section 2.13 shall  include,  without
limiting the generality of this Section, all reports,  returns, and payments due
under all  federal,  state,  or local laws or  regulations  relating  to income,
sales,  use  and  withholding  taxes,  withholding   obligations,   unemployment
insurance, Social Security, workers' compensation,  and other obligations of the
same or of a similar  nature.  The  Seller is not  subject  to any open audit in
respect of its taxes, no deficiency  assessment or proposed adjustment for taxes
is pending,  and the Seller has no  knowledge of any  liability,  whether or not
proposed,  for any tax with respect to any period  through the date hereof to be
imposed upon any of its  properties or assets for which there is not an adequate
reserve (in cash) reflected in its respective  Audited  Financials and Financial
Statements.

         2.14 Banks. Disclosure Schedule 2.14, Bank Accounts,  which is attached
lists all the names and  locations of all banks,  trust  companies,  savings and
loan  associations,  and  other  financial  institutions  at which  the  Company
maintains accounts or lock boxes and the corresponding  account numbers, if any,
relating to the Company and the names of all persons  authorized to draw on such
accounts or who have access to such boxes.

         2.15 Insurance.  Disclosure Schedule 2.15, Insurance Policies, which is
attached  contains  (i) a complete  and accurate  description  of the  Company's
self-insurance  practices and items covered by such  self-insurance,  if any and
(ii) a complete  list of all  material  policies  of fire,  liability,  workers'
compensation,  products  liability and other forms of insurance owned or held by
or for the benefit of the Company (collectively,  the "Insurance Policies"). The
Seller has delivered to the Purchaser true and complete  copies of the Insurance
Policies,  along with copies of all past Insurance Policies reasonably available
after due and diligent search. To Seller's knowledge the Company's tangible real
and  personal  property  and  assets,  whether  owned or leased,  are insured by
reputable insurance companies licensed to do business in the state in which such
property  is  located  in  such  amounts   customarily   carried  by  comparable
businesses, and as is required by any agreements with licensors and/or customers
except to the extent that any  failures  to insure  would not, in the event of a
loss,  have a material  adverse  effect upon the  Company's  Business.  All such
Insurance  Policies  are and will  remain in full force and effect  through  the
Closing Date and, to the best knowledge of the Seller;  there is no notice of or
basis for any  modification,  suspension,  termination,  or  cancellation of any
Insurance Policy.

         2.16 Contracts and Commitments.

                  (a) Disclosure Schedule 2.16, Contract  Commitments,  which is
attached hereto, contains a complete list of each contract and commitment of the
Seller that is material to the  operations,  assets,  and  business or financial
condition  of the  Company or that by its terms can  reasonably  be  expected to
require  future  payment by or to the Company of $10,000 or more,  including but
not limited to the following:

                           (i) All employment  contracts and commitments between
the Company  and its  employees, other  than  those terminable by the Company at
will and without payment or penalty;

                           (ii) All collective  bargaining  agreements and union
contracts to which the Company is a party;

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 10

                           (iii) All contracts or commitments,  written or oral,
with    distributors,    brokers,    manufacturer's    representatives,    sales
representatives,  service  or  warranty  representatives,  customers,  and other
persons,  firms,  or  corporations  engaged in the sale or  distribution  of the
Company's products or services;

                           (iv) All  purchase  orders  issued by the  Company in
excess of $20,000,  all sales orders received by the Seller in excess of $25,000
and all purchase or sales orders that call for delivery or performance on a date
more than one year from the date of this Agreement;

                           (v)  All  contracts  and  arrangements   between  the
Company or any person or entity that  controls,  is  controlled  by, or is under
common  control  with,  the Seller or any family member of any such person (such
entity or person, being hereinafter referred to as an "Affiliate");

                           (vi) All contracts and arrangements, written or oral,
under  which  the  Company  is  either  a bailor  or  bailee  including  without
limitation contracts for the bailment of Aircraft;

                           (vii) All  agreements  pursuant  to which the Company
acquired its Trade Name or a substantial portion of its assets; and

                           (viii) All other  contracts  and  commitments  of the
Company  (excluding  leases  for  the  purpose  of  this  Section  2.16(a))  and
instruments  reflecting obligations for borrowed money or for other indebtedness
or guarantees thereof.

                  (b) At the  Purchaser's  request,  the Seller shall deliver or
cause to be delivered to the Purchaser full and complete copies of the documents
identified  above and all such other agreements and instruments as the Purchaser
may reasonably request.

                  (c) The Seller is not a party to any  written  agreement  that
would restrict it from carrying on any line of business anywhere in the world.

                  (d) Each of the contracts  listed on Disclosure  Schedule 2.16
is valid and binding,  and each of the contracts binding on the Company (whether
or not listed on Disclosure Schedule 2.16) has been entered into in the ordinary
course of  business.  To Seller's  knowledge,  neither the Company nor any other
party hereto is in default  under or in breach or violation  of, and neither the
Company nor any other party hereto has received  notice of any asserted claim of
default  by any other  party  under,  or a breach or  violation  of,  any of the
contracts, agreements, and commitments described in this Section 2.16, including
without  limitation,  any  licensing  or usage  agreements  with  respect to the
technology that the Company now uses or currently intends and plans to use.

         2.17  Distributors  and Customers.  To the Seller's best knowledge,  it
enjoys  good  working   relationships  under  all  of  its  distributor,   sales
representative,  and similar  agreements  necessary  to the normal  operation of
Company's Business.  Except as set forth on Disclosure Schedule 2.17, the Seller
has no  knowledge or basis for  knowledge  that any customer or group of related
customers (i.e., any customers who are directly or indirectly

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MEMBERSHIP INTEREST AGREEMENT
Page 11

through one or more  intermediaries  under common control),  who, for the fiscal
year ended 2004 and during each of the two preceding  fiscal years accounted for
more than 10% in aggregate volume of gross sales of the Company,  has terminated
or  expects to  terminate  a material  portion of its normal  business  with the
Company.

         2.18 Fringe Benefit Plans.

                  (a) List of Plans.  Disclosure  Schedule 2.18,  Benefit Plans,
which is attached, contains a true and complete list and summary description of,
and the Company has delivered to the Purchaser true and complete copies of, each
pension,  retirement,  profit-sharing,  stock purchase,  stock option, vacation,
deferred compensation,  bonus or other incentive plan, or other employee benefit
program, arrangement,  agreement, or understanding,  or medical, vision, dental,
or other  health  plan,  or life  insurance  or  disability  plan,  or any other
employee benefit plans,  including,  without  limitation,  any "employee benefit
plan" as defined in section 3(3) of the Employee  Retirement Income Security Act
of 1974, as amended ("ERISA"'),  whether formal or informal, written or oral, to
which the Seller contributes,  or is a party, or is bound, or under which it may
have liability, and under which employees or former employees of the Company (or
their  beneficiaries)  are  eligible to  participate  or derive a benefit.  Each
employee  benefit plan which is a "group health plan" as such term is defined in
section 162(i)(2) of the Internal Revenue Code of 1986, as amended (the "Code"),
satisfies the applicable  requirements  of section 4980B of the Code.  Except as
described on Disclosure  Schedule  2.18, the Company does not have the intention
or commitment,  whether legally  binding or not, to create any additional  plan,
practice,  or agreement,  or to modify or change any existing plan, practice, or
agreement  that would affect any employee or terminated  employee of the Seller,
and benefits under all employee  benefit plans are as  represented  and have not
been and will not be  increased  after  the date on which  documents  have  been
provided.

                  (b) Representations with Respect to Plans. Except as disclosed
on  Disclosure  Schedule  2.18,  the  Company  does not  sponsor,  maintain,  or
contribute  to any employee  benefit plans within the meaning of section 3(3) of
ERISA,  which are subject to Title I of ERISA (the "ERISA Plans").  Each pension
plan within the meaning of section 3(2) of ERISA ("Pension  Plan") is identified
on Disclosure Schedule 2.18. The following  representations are made with regard
to the ERISA Plans or the Pension Plans, if any and so limited:

                           (i) The Company  does not  contribute  to, or have an
obligation  to  contribute  to,  or  has at any  time  contributed  to or had an
obligation to contribute to, sponsor, or maintain,  or at any time has sponsored
or maintained, a multiemployer plan within the meaning of section 3(37) of ERISA
and the  Company  has not  incurred  any  withdrawal  liability,  or  suffered a
"complete  withdrawal" or a "partial withdrawal" with respect to a multiemployer
plan;

                           (ii) The  Pension  Plans are  qualified  plans,  have
remained  qualified  under the Code since  inception and have been determined by
the Internal  Revenue Service ("IRS") to be so qualified,  and the IRS has taken
no action to revoke such determination or qualification;

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MEMBERSHIP INTEREST AGREEMENT
Page 12

                           (iii) The  Company  has,  in all  material  respects,
performed all  obligations,  whether arising by operation of law,  contract,  or
past custom,  required to be  performed  under or in  connection  with the ERISA
Plans,  and the Company does not have any  knowledge of any default or violation
by any other party with respect to the ERISA Plans;

                           (iv) To Seller's knowledge,  the Company has complied
in all material respects with ERISA, and, where applicable,  the Code, regarding
the ERISA Plans;

                           (v) All reports and disclosures relating to the ERISA
Plans  required to be filed with or furnished  to  governmental  agencies,  plan
participants,  or plan  beneficiaries have been or will be filed or furnished in
accordance with applicable law in a timely manner;

                           (vi) There are no Actions pending (other than routine
claims for benefits) or, to the knowledge of the Seller threatened,  against any
ERISA Plan or against the assets funding any ERISA Plan;

                           (vii)  Full  payment  has  been or will be  made,  in
accordance with section  404(a)(6) of the Code, of all amounts which the Company
is required to pay under the terms of the Pension Plans as  contributions to the
Pension  Plans as of the last day of the most  recent  plan year of the  Pension
Plans ended before the date of this Agreement, and neither the Pension Plans nor
the trusts  established  there  under have  incurred  any  "accumulated  funding
deficiency"  (as  defined in section  302 of ERISA and section 412 of the Code),
whether or not  waived,  as of the last day of the most  recent plan year of the
Pension Plans ended before the date of this Agreement;

                           (viii)The Company maintains  adequate accruals on its
books to reflect  accrued  contributions  to each of the  Pension  Plans for the
current plan year and to reflect accrued medical and dental claims incurred, but
not yet paid,  under the terms of any ERISA Plan which is a welfare  plan within
the meaning of section 3(1) of ERISA (a "Welfare Plan");

                           (ix) No transaction  has occurred with respect to the
Pension Plans or the assets  thereof which could result in the imposition on the
Seller or the  administrators  or  trustees  under  the  Pension  Plans,  either
directly or indirectly,  of taxes or penalties imposed under section 4975 of the
Code or section 502(i) of ERISA;

                           (x) With respect to the Pension Plans,  regardless of
whether  such  plans  are  subject  to  Title IV of  ERISA,  no  termination  or
reportable  event,  as defined in section  4043(b) of ERISA has  occurred  or is
anticipated to occur;

                           (xi) As of the most  recently  dated  plan  statement
received by the  Company,  the fair market  value of assets of each Pension Plan
which is a "defined benefit plan" as defined in section 3(35) of ERISA ("Defined
Benefit  Plan")  equals or exceeds the  aggregate  present  value of the accrued
benefits  there  under  of all  participants,  computed  on a "plan  termination
basis," based upon actuarial assumptions which are reasonable in the aggregate;

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MEMBERSHIP INTEREST AGREEMENT
Page 13

                           (xii) Other than applications for  determination,  no
action is  pending  with  respect  to the  Pension  Plans  before  the IRS,  the
Department of Labor, the Pension Benefit Guaranty Corporation ("PBGC") or before
any state or local governmental agency;

                           (xiii) No act or  omission  constituting  a breach of
fiduciary  duties has  occurred  with  respect to the ERISA  Plans or the assets
thereof,  which could subject the Seller or the  Purchaser,  either  directly or
indirectly, to any liability;

                           (xiv) No  liability  under Title IV of ERISA has been
incurred by the Company  which has been  satisfied  in full and the Company does
not know of any facts or circumstances which might give rise to any liability of
the Company  under Title IV of ERISA which could  reasonably be  anticipated  to
result in any claims being made against the Purchaser or the Seller by the PBGC;

                           (xv) The PBGC has not instituted  any  proceedings to
terminate any of the Pension Plans; and

                           (xvi) Each Welfare Plan is intended to meet currently
applicable  requirements for tax-favored treatment under Subchapter B of Chapter
1 of the Code, is in compliance with such requirements,  and if applicable, with
the  requirements  of  sections  419  and  419A of the  Code,  and  there  is no
disqualified  benefit  (as such term is defined in section  4976(a) of the Code)
which would subject the Seller or the Purchaser to a tax under section 4976.

                  (c) Plan Documents.  The Seller has delivered to the Purchaser
and its counsel true and complete copies, if any, of (i) all documents governing
the ERISA Plans, including all amendments thereto which will become effective at
a later date, (ii) all agreements and arrangements listed on Disclosure Schedule
2.18, (iii) the latest IRS determination letter obtained with respect to each of
the Pension  Plans,  (iv) Form 5500 for the most recent  completed plan year for
each of the ERISA Plans, together with all schedules forming a part thereof, (v)
the most recent actuarial valuation for any Defined Benefit Plan, (vi) any form,
other than Form 5500,  required to be filed for the most recently completed plan
year for any  Defined  Benefit  Plan  with any  governmental  agency,  (vii) all
summary  plan  descriptions  relating  to the ERISA  Plans,  (viii) the  annuity
contracts  funding  obligations  of any  Defined  Benefit  Plan,  and  (ix)  all
employment manuals.

         2.19 Labor  Relations.  No employee of the Company is  represented by a
labor union or under a collective bargaining  agreement,  except as set forth on
Disclosure  Schedule 2.19,  Collective  Bargaining  Agreements,  if any, and the
particular  collective bargaining agreement or agreements have been delivered to
the  Purchaser.  No petition  has been filed or  proceedings  instituted  by any
employee  or  group  of  employees  with  any  labor   relations  board  seeking
recognition of a bargaining representative.  There are no matters pending before
the National Labor  Relations  Board or any similar state or local labor agency,
and  the  Company  is  neither  engaged  in  nor  subject  to any  penalties  or
enforcement  action in  respect of any unfair  labor  practices,  and the Seller
believes  that it enjoys good labor  relations.  There are no  controversies  or
disputes  pending between the Company and any of its employees,  except for such
controversies  and  disputes  as do not and  will  not,  individually  or in the
aggregate, have a material adverse effect on its business,  operations,  assets,
prospects, or condition, financial or otherwise.

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MEMBERSHIP INTEREST AGREEMENT
Page 14

         2.20 Environmental Matters.

                  (a) For  purposes of this  Section  2.20,  the property of the
Seller  shall mean such  property  whether now or in the past owned or leased by
it. Additionally, for purposes of this Section 2.20, "Hazardous Substance" means
(i) a hazardous substance as defined in 42 U.S.C.  ss.9601(14),  as amended from
time to time, and all rules, regulations,  and orders promulgated there under as
in effect  from time to time,  (ii)  "hazardous  waste" as  defined in 42 U.S.C.
ss.6903(5), as amended from time to time, and all rules, regulations, and orders
promulgated there under as in effect from time to time, (iii) if not included in
(i) or (ii)  above,  "hazardous  waste  constituents"  as  defined  in 40 C.F.R.
ss.260.10,  specifically  including  Appendix  VII and VIII of  Subpart  D of 40
C.F.R.  ss.261,  as amended from time to time, and all rules,  regulations,  and
orders  promulgated  there  under  as in  effect  from  time to  time,  and (iv)
"source,"  "special  nuclear," or "by-product  material" as defined in 42 U.S.C.
ss.3011, et seq., as amended from time to time, and all rules, regulations,  and
orders  promulgated  there  under  as in  effect  from  time to  time.  Further,
"Requirements  of Law" shall  mean all  applicable  federal,  state,  local,  or
foreign  laws,   statutes,   ordinances,   rules,   regulations,   or  court  or
administrative orders or processes, or arbitrator's orders or processes.

                  (b) Except as set forth on Disclosure  Schedule 2.20 Hazardous
Substances, or as set forth in any and all reports, studies, plans, governmental
interventions,  indemnity  agreements,  insurance  policies  or other  documents
concerning  the  Hazardous  condition of the property or Company's  Business set
forth thereon or otherwise delivered to Purchaser,  to Seller's  knowledge,  the
Seller is and has been in compliance  with all  Requirements  of Law relating to
Hazardous  Substances and applicable to any of its properties.  Without limiting
the foregoing,  (i) neither the  operations of the Company nor the  development,
manufacture, or sale of the processes,  technology,  results, or products of the
Company violate or have violated any  Requirements of Law relating to air, soil,
water, or noise pollution, or the production, storage, processing,  utilization,
labeling, transportation,  disposal, emission, or other disposition of Hazardous
Substances,  and (ii) to  Seller's  knowledge,  the  Company,  or any current or
former owner, occupant or operator of any property at any time owned, leased, or
operated by the Seller for the Company's Business,  or any portion thereof,  has
never  utilized  any such  property or any portion  thereof in  violation of any
environmental  Requirements of Law, except those hazards specified in Disclosure
Schedule 2.20 Hazardous Substances, which is attached hereto, or as set forth in
any and all  reports,  studies,  plans,  governmental  interventions,  indemnity
agreements,  insurance  policies or other  documents  concerning  the  Hazardous
condition of the property or Company's  Business set forth  thereon or otherwise
delivered to Purchaser.

                  (c) Except as set forth on Disclosure  Schedule 2.20 Hazardous
Substances, or as set forth in any and all reports, studies, plans, governmental
interventions,  indemnity  agreements,  insurance  policies  or other  documents
concerning  the  Hazardous  condition of the property or Company's  Business set
forth thereon or otherwise  delivered to Purchaser,  to Seller's  knowledge,  no
discharge,  release, spillage,  uncontrolled loss, seepage, or filtration of any
Hazardous  Substance  or any  fuel,  gasoline,  or other  petroleum  product  or
by-product  has  occurred  at,  upon,  or under any  property at any time owned,
leased, or operated by the Seller in an amount that violates any Requirements of
Law.

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MEMBERSHIP INTEREST AGREEMENT
Page 15

                  (d) Except as set forth on Disclosure  Schedule 2.20 Hazardous
Substances, or as set forth in any and all reports, studies, plans, governmental
interventions,  indemnity  agreements,  insurance  policies  or other  documents
concerning  the  Hazardous  condition of the property or Company's  Business set
forth thereon or otherwise delivered to Purchaser, the Company does not utilize,
store,  dispose of, treat,  generate,  process,  transport,  release, or own any
Hazardous Substance, nor has the Company ever done so.

                  (e) The Seller has in a timely  manner  obtained  all Licenses
and filed all reports  required to be filed under or pursuant to any  applicable
environmental Requirements of Law.

                  (f) Except as set forth on Disclosure  Schedule 2.20 Hazardous
Substances, or as set forth in any and all reports, studies, plans, governmental
interventions,  indemnity  agreements,  insurance  policies  or other  documents
concerning  the  Hazardous  condition of the property or Company's  Business set
forth thereon or otherwise  delivered to Purchaser,  to Seller's  knowledge,  no
property at any time owned, leased, or operated by the Company now contains, or,
to the knowledge of the Seller,  in the past has contained,  any  underground or
aboveground  tanks  for the  storage  of any  Hazardous  Substance  or fuel oil,
gasoline, or any other petroleum product or by-product.

                  (g) Except as set forth on Disclosure  Schedule 2.20 Hazardous
Substances, or as set forth in any and all reports, studies, plans, governmental
interventions,  indemnity  agreements,  insurance  policies  or other  documents
concerning  the  Hazardous  condition of the property or Company's  Business set
forth thereon or otherwise  delivered to Purchaser,  the Seller has not received
any notice of writs, injunctions,  decrees, orders, or judgments outstanding, or
suits, claims, actions,  proceedings, or investigations instituted or threatened
under any environmental  Requirements of Law applicable to any of the properties
at any time owned, leased, or operated by the Company, including but not limited
to any notice  from any  governmental  authority  or  private  or public  entity
advising the Seller that it is or is potentially  responsible for response costs
under the Comprehensive  Environmental Response,  Compensation and Liability Act
("CERCLA"),  as  amended,  with  respect to a release or  threatened  release of
Hazardous Substances.

                  (h) Except as set forth on Disclosure  Schedule 2.20 Hazardous
Substances, or as set forth in any and all reports, studies, plans, governmental
interventions,  indemnity  agreements,  insurance  policies  or other  documents
concerning  the  Hazardous  condition of the property or Company's  Business set
forth thereon or otherwise  delivered to Purchaser,  the Seller has not received
notice of any violation of any environmental, zoning, worker safety, or land use
Requirements  of Law  relating to the  operation of the Company or to any of the
processes used or followed,  results obtained,  or products developed,  made, or
sold by the  Seller  including,  without  limitation,  under  CERCLA,  the Toxic
Substances  Control  Act of 1976,  as amended,  the  Resource  Conservation  and
Recovery  Act of 1976,  as amended,  the Clean Air Act, as amended,  the Federal
Water Pollution Control Act, as amended,  or the Occupational  Safety and Health
Act of 1970, as amended.

         2.21  Compliance  with Laws.  The Seller has not been  charged with any
violation of, or, to the best of its  knowledge,  Seller is not in violation of,
and is not under any  investigation  with respect to any charge  concerning  any
violation of any  Requirements of Law, in which

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MEMBERSHIP INTEREST AGREEMENT
Page 16

such  violation  either singly or in the aggregate with other  violations  would
have a  material  adverse  effect  upon  the  operations,  assets,  business  or
financial  condition of the Company.  The Company is not in default with respect
to  any  order,  writ,   injunction,   or  decree  of  any  court,   agency,  or
instrumentality.  Without limiting the generality of the foregoing,  to Seller's
knowledge, the Company is in compliance with all Requirements of Law promulgated
by the Occupational Safety and Health Administration.

         2.22  Licenses,  Permits,  and  Authorizations.   The  Seller  has  all
approvals,  authorizations,  consents, licenses,  franchises,  orders, and other
permits (collectively, "Licenses") of (i) any governmental or regulatory agency,
whether  federal,  state,  local or  foreign,  and (ii)  all  trade or  industry
associations,  required  to  permit  it to carry on its  business  as  presently
conducted,  all of which are in full force and effect.  Disclosure Schedule 2.22
Operational  Licenses  hereto  sets  forth all such  Licenses  required  for the
operation of the business of the Company to the extent not previously include in
Disclosure Schedule 2.6.

         2.23  Inventory.  Except as set forth on Disclosure  Schedule 2.23, the
inventories  of the  Company  reflected  on the Balance  Sheets of its  "Audited
Financials" and "Financial  Statements" (both terms collectively  referred to as
"Company  Financials");   taken  as  a  whole  are  substantially  in  good  and
merchantable  condition  and are suitable and usable or saleable in the ordinary
course of business for the purposes intended,  net of the reserves stated on the
Company  Financials.  The  value  of the  inventory  set  forth  on the  Company
Financials  (net of such reserves) was  established in accordance  with GAAP and
with the Company's  inventory  valuation and write-down policies so that the net
value thereof stated on such Company Financials shall have been determined.  The
Company has reasonable  inventories to conduct its business consistent with past
practices.  There has been no material adverse change since December 31, 2004 in
the amount or condition of the inventories or the reserves with respect thereto.

         2.24  Accounts  Receivable.  All  accounts  receivable  of the  Company
represent  bona  fide and valid  claims  arising  in  connection  with  sales of
products by the Company and,  except to the extent of the reserves stated on the
Company Financials, to Seller's knowledge, the Company's accounts receivable are
collectible  and are not subject to any  counterclaim  or setoff,  except as set
forth on Disclosure  Schedule 2.24. There has been no material adverse change at
the time of Closing in the amount,  validity,  or collectibility of the accounts
receivable of the Company from that stated on the Company's Financials.

         2.25  Property  of Others.  Except as set forth on  Schedule  2.25,  no
shortage  exists in (i) any  inventory of raw  material,  work in  progress,  or
finished  goods owned by  customers  or suppliers of the Company and stored upon
its premises or otherwise,  or (ii) any other item of personal property owned by
another for which the Company is  accountable to another.  Without  limiting the
foregoing,  except as set forth on Schedule 2.25 all items of personal  property
for which the Company is accountable under any bailment  agreement,  consignment
contract,  loan program,  or otherwise are fully accounted for with no shortages
or missing or lost items, are in workable,  usable, and saleable condition,  and
have suffered no damage or deterioration, ordinary wear and tear excepted.

         2.26  Disclosure of  Confidential  Information.  The  Seller has  fully
disclosed, or will disclose to the Purchaser, on or before the Closing Date, all
processes, inventions, recipes, methods,

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MEMBERSHIP INTEREST AGREEMENT
Page 17

formulas,  plans,  drawings,  customer lists, secret information,  recipes,  and
know-how  (whether secret or not) known to it or in its possession and usable by
the Company in  connection  with its business as now conducted or proposed to be
conducted.

         2.27  Condition  of  Tangible  Assets.  Except as set forth on Schedule
2.27,  to  Seller's  knowledge,  all of the  facilities  of the  Company and its
equipment and other tangible assets,  are in good condition and repair (ordinary
wear and tear excepted) and workable, usable, and adequate for the uses to which
they have been put by the Company in the ordinary  course of business,  and none
of  such  facilities  and  none of  such  equipment  or  other  tangible  assets
(exclusive  of obsolete  items no longer used in the  Company's  business) is in
need of other than routine  maintenance or repair.  The Company has not received
any notice of any  violations  of any  Requirements  of Law with  respect to the
Company's properties or operations that have not been cured.

         2.28  Product  and  Service   Warranties.   Disclosure  Schedule  2.28,
Warranties,  which is attached hereto,  contains a true and complete description
of all  warranties  and terms and  conditions of sale to third parties which are
not  included in the Customer  maintenance  and service  Agreement  disclosed in
Disclosure Schedule 2.16 with respect to all products overhauled,  manufactured,
assembled,  repaired or sold by the Company that have been in effect at any time
over the last five years, except for warranties imposed by law.

         2.29 Absence of Undisclosed Liabilities.  The Company does not have any
material debt, liability, or obligation of any nature, whether known or unknown,
or fixed, absolute,  accrued,  contingent, or otherwise,  except those which (i)
are accrued or reserved against it in the Company's  Financials,  (ii) have been
disclosed in this Agreement or in any of the  Disclosure  Schedules  hereto,  or
(iii) have been incurred since May 24,, 2005 in the ordinary  course of business
in amounts and for terms consistent, individually and in the aggregate, with the
Company's past practice.

         2.30 Disclosure.  No  representation  or warranty by the Seller in this
Agreement  or  any  of  the  other  Acquisition  Documents  (including,  without
limitation,  the  Disclosure  Schedule),  contains  or will  contain  any untrue
statement of a material  fact or omits or will omit to state any  material  fact
necessary to make the statements  herein or therein not misleading.  There is no
fact known to the Seller that materially  adversely affects,  or that, as of the
date  of  Closing,   might  in  the  future  materially  adversely  affect,  the
operations,  business, assets, properties, or condition, financial or otherwise,
of the Seller that has not been set forth in this  Agreement  or the  Disclosure
Schedule.

         2.31  Brokerage.  No broker or finder has acted  directly or indirectly
for the Seller or any of their  Affiliates in connection  with this Agreement or
the transactions contemplated hereby, and no broker or finder is entitled to any
brokerage or finder's fee or other  commission  in respect  thereof based in any
way  on  the  actions  or  statements  of,  or  agreements,   arrangements,   or
understandings made with the Seller or any of its Affiliates.

         2.32.  With respect to any  representation  or warranty  made by Seller
herein, the phrases "to Seller's best knowledge" or "to Seller's  knowledge" (or
similar phrases which limit a  representation  or warranty to matters within the
knowledge  or belief of Seller)  shall mean that no facts or  circumstances  are
known by or have come to the attention of the

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MEMBERSHIP INTEREST AGREEMENT
Page 18

Members of the  Company,  which  would give any such  Members  knowledge  of the
inaccuracy  of the  substantive  facts  and  circumstances  set  forth  in  such
representation or warranty,  but shall not mean that Seller,  the Company or the
Members have undertaken  investigations  or  verifications  with respect to such
matters.

                                   ARTICLE III
                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser hereby represents and warrants to the Seller as set forth below:

         3.1 Corporate  Organization,  etc. The Purchaser is on the date hereof,
and will be on the Closing Date, a corporation duly organized,  validly existing
and in good standing under the laws of the State of Oklahoma.

         3.2  Authorization,  etc. The  Purchaser has full  corporate  power and
authority to enter into this  Agreement and the other  Acquisition  Documents to
which it is or will be a party, to perform its  obligations  hereunder and there
under, and to carry out the transactions  contemplated  hereby and thereby.  The
Boards  of  Directors  of  the  Purchaser  and  its  Parent   corporation,   TAT
Technologies, Ltd. have taken, or will take before the Closing Date, all actions
required by law, its Certificate of  Incorporation,  its By-Laws or otherwise to
authorize  (i) the  execution  and  delivery  of this  Agreement  and the  other
Acquisition  Documents and (ii) the performance of its obligations hereunder and
there  under.  This  Agreement  has been  duly  executed  and  delivered  by the
Purchaser  and, upon the  execution  and delivery of the  remaining  Acquisition
Documents  by  a  duly  authorized  officer  of  the  Purchaser,  the  remaining
Acquisition  Documents  will  have  been  duly  executed  and  delivered  by the
Purchaser,  and this Agreement is, and such other Acquisition Documents will be,
upon  due  execution  and  delivery  thereof,  the  legal,  valid,  and  binding
obligations of the Purchaser, enforceable according to their terms.

         3.3 No  Violation.  None  of (i) the  execution  and  delivery  of this
Agreement  or  any  other  Acquisition  Document  by  the  Purchaser,  (ii)  the
performance  by the Purchaser of its  obligations  hereunder or there under,  or
(iii) the consummation of the transactions  contemplated  hereby or thereby will
(A) violate any provision of the Certificate of  Incorporation or By-Laws of the
Purchaser, (B) violate, or be in conflict with, or permit the termination of, or
constitute  a default  under or breach  of,  or cause  the  acceleration  of the
maturity of, any contract,  debt, or other  obligation of the  Purchaser,  which
violation,  conflict,  default,  breach,  termination  or  acceleration,  either
individually  or in the  aggregate  with all other such  violations,  conflicts,
defaults,  breaches,  terminations  and  accelerations,  would  have a  material
adverse effect on the business,  assets or financial condition of the Purchaser,
(C) except as set forth in Disclosure  Schedule 3.3, if any hereof,  require the
consent of any other party to, or result in the  creation or  imposition  of any
Lien upon any  property  or  assets of the  Purchaser  under  any  agreement  or
commitment to which the Purchaser is a party or by which the Purchaser is bound,
or (D) to the best knowledge and belief of the Purchaser, violate any statute or
law or any  judgment,  decree,  order,  regulation,  or  rule  of any  court  or
governmental authority to which the Purchaser is subject.

         3.4 Litigation. There is no action  pending or,  to the best  knowledge
and belief of the Purchaser, threatened against the Purchaser, or any properties
or rights of the Purchaser,

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 19

that  questions or challenges the validity of this Agreement or any of the other
Acquisition  Documents,  nor any  action  taken or to be taken by the  Purchaser
pursuant hereto or thereto or in connection with the  transactions  contemplated
hereby  or  thereby  and  the  Purchaser  does  not  know  of any  such  action,
proceeding, or investigation that may be asserted.

         3.5 Disclosure.  No representation or warranty by the Purchaser in this
Agreement  contains or will contain any untrue  statement of a material  fact or
omits or will omit to state any material fact  necessary to make the  statements
herein not misleading.

         3.6 Brokerage. No broker or finder has acted directly or indirectly for
the  Purchaser  or its  Affiliates  in  connection  with this  Agreement  or the
transactions  contemplated  hereby,  and no broker or finder is  entitled to any
brokerage or finder's fee or other  commission  in respect  thereof based in any
way on the  actions  or  statements  of,  or the  agreements,  arrangements,  or
understandings made with the Purchaser or its Affiliates.

                                   ARTICLE IV
                           OBLIGATIONS OF THE PARTIES

   The Seller  hereby  covenants and agrees with the Purchaser and the Purchaser
hereby covenants and agrees with the Seller that:

         4.1 Reasonable  Access. The Seller shall or shall cause its Members and
managers,  accountants,   counsel,  and  other  authorized  representatives  and
affiliated  parties to afford the  Purchaser and its counsel,  accountants,  and
other authorized  representatives reasonable access during normal business hours
to its plants, properties, books and records that the Purchaser and its advisors
may have the  opportunity to make such reasonable  investigations  as they shall
desire to make of the  affairs  of the  Seller;  provided,  however,  except for
managers,   representatives  and  employees  designated  by  the  managers,  the
Purchaser shall not contact employees of the Company to discuss the transactions
contemplated by this  Agreement.  The Company shall furnish to the Purchaser any
additional  financial and operating data and other  information as the Purchaser
and its counsel,  accountants,  and other authorized  representatives shall from
time to time reasonably request.

         4.2 Conduct  Before  Closing Date.  Before the Closing Date,  except as
otherwise  contemplated  by this  Agreement or as permitted by the prior written
consent of the Purchaser,  but without making any commitment on the  Purchaser's
behalf, the Company shall:
                  (a) Conduct its business and  operations  only in the ordinary
course,  including,  without  limitation,  maintaining  inventories , taken as a
whole, at levels consistent with past practice;

                  (b)  Maintain  all  of  its  properties  and  assets  in  good
condition, working order, and repair (except for ordinary wear and tear);

                  (c) Perform its obligations under all agreements  binding upon
it and maintain all of its Licenses in good standing;

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 20

                  (d)  Continue  in effect the  Insurance  Policies  (or similar
coverage) referred to in Section 2.14 hereof;

                  (e) Keep  available  the services of its current  managers and
employees;

                  (f)  Maintain  and  preserve  the good will of the  suppliers,
customers, and others having business relations with it;

                  (g) Before the Closing Date,  consult with the Purchaser  from
time to time with  respect to any  actual or  proposed  material  conduct of its
business;

                  (h)  Continue  all  capital  expenditure  programs in progress
before the Closing Date; and

                  (i)  Obtain  the  approval  of  Purchaser  prior to making any
extraordinary (not in the ordinary course of business)  expenditure in excess of
$2,500.00.

         4.3 Prohibited  Transactions  Before Closing Date.  Before  the Closing
Date,  except as otherwise  contemplated  by this  Agreement or permitted by the
prior written consent of the Purchaser, the Company shall not:

                  (a) Become a party to any agreement,  which, if it had existed
on the date hereof,  would have come within the scope of the Disclosure Schedule
pursuant to Section 2.16 hereof;

                  (b) Do any of the things listed in Section 2.10 hereof;

                  (c) Enter into any compromise or settlement of any litigation,
proceeding or governmental investigation relating to its properties or Company's
Business; or

                  (d) Directly or  indirectly,  in any way,  contact,  initiate,
enter  into,  or conduct  any  discussions  or  negotiations,  or enter into any
agreements,  whether  written or oral, with any person or entity with respect to
the sale of any of the Company's assets or units evidencing Membership Interests
or a merger or consolidation of the Company with any other entity.

         4.4 Further Assurances. Before and after the Closing, each party hereto
shall  execute and deliver such  instruments  and take such other actions as any
other party may reasonably request for the purpose of carrying out the intent of
this Agreement and the other Acquisition Documents.  Each party hereto shall use
its best efforts to cause the  transactions  contemplated  by this Agreement and
the other  Acquisition  Documents to be consummated,  and,  without limiting the
generality  of the  foregoing,  to obtain all  consents  and  authorizations  of
government  agencies and third parties and to make all filings with and give all
notices to  government  agencies  and third  parties  that may be  necessary  or
reasonably  required to effect the  transactions  contemplated by this Agreement
and the other Acquisition Documents.  The Seller shall give prompt notice to the
Purchaser,  after receipt thereof by the Seller,  of (i) any notice of, or other
communication  relating  to, any default or event that,  with notice or lapse of
time or both, would become a default under any

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 21

indenture,  instrument,  or  agreement  material  to the  Company,  to which the
Company  is a party or by which the  Company  is bound,  and (ii) any  notice or
other communication from any third party alleging that the consent of such third
party is or may be required in connection with the transactions  contemplated by
this Agreement and the other Acquisition  Documents.  Each corporate party shall
deliver to the other at Closing,  appropriate  evidence  of the  approval of its
respective  Managers  or Board of  Directors  and  stockholders  or Members  (if
required by law) of this  Agreement,  the other  Acquisition  Documents  and the
transactions contemplated hereby and thereby.

         4.5 Confidentiality.  Before and after the Closing,  each party to this
Agreement shall, cause its managers, officers,  accountants,  counsel, and other
authorized  representatives and affiliated parties, to hold in strict confidence
and not use or disclose to any other party without the prior written  consent of
the other party,  all information  obtained from the other parties in connection
with the transactions  contemplated hereby,  except such information may be used
or  disclosed:  (i) as may be  necessarily  published by Purchaser to any public
market,  business reporting service,  or stock exchange or as may be required by
governmental  stock  exchange   regulations  or  rules,  or  as  required  under
agreements  with  customers,  vendors,  lenders or other third parties,  (ii) if
required by court  order or decree or  applicable  law,  (iii) if it is publicly
available  other than as a result of a breach of this  Agreement,  (iv) if it is
otherwise contemplated herein.

                                    ARTICLE V
                      CONDITIONS TO PURCHASER'S OBLIGATIONS

         The obligation of the Purchaser  under this Agreement to consummate the
Closing on the Closing Date shall be subject to the  satisfaction,  on or before
the Closing Date, of each of the following conditions:

         5.1  Representations  and  Warranties  True.  The  representations  and
warranties of the Seller contained herein,  in the other  Acquisition  Documents
(including,  without limitation,  all schedules and exhibits hereto and thereto)
and in all certificates and documents  delivered by the Seller shall be true and
accurate as of the Closing Date, except for changes permitted or contemplated by
this Agreement.

         5.2 No Material Changes.

                  (a) No portion of the assets  material to the operation of the
business of the Company  shall,  after December 31, 2004 until the Closing Date,
be damaged,  destroyed, or taken by condemnation,  whether or not covered by any
Insurance Policy;

                  (b) After  December 31, 2004 and until the Closing  Date,  the
Company shall not have suffered or become bound by changes of any kind or nature
that either  individually or in the aggregate have a material  adverse effect on
its ability to continue its business operations; and,

                  (c) No material  adverse  change in the business,  assets,  or
financial  condition of the Company shall have occurred  after December 31, 2004
and be continuing.

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 22

         5.3  Performance.  The Seller shall have  performed and complied in all
material respect with all agreements,  obligations,  and conditions  required by
this  Agreement or the other  Acquisition  Documents to be performed or complied
with by them on or before the Closing Date.

         5.4 Consents.  All filings with and consents from  government  agencies
and third parties  required to consummate the transactions  contemplated  hereby
and by the  other  Acquisition  Documents  shall  have  been  made  or  obtained
(including  without  limitation  the  consents of the  lessors  under the leases
referred to in Section 2.6 hereof and the  consents and  approvals  specified in
Section 2.7 and Section  2.8),  except to the extent that making any such filing
or obtaining any such consent has been waived in writing by the Purchaser or the
failure to obtain  any such  consent  or make any such  filing  would not have a
material  adverse effect on the assets,  properties,  operations,  business,  or
condition, financial or otherwise, of the Company.

         5.5 Closing Documents. The Seller shall have delivered, or caused to be
delivered to the Purchaser, the documents and instruments described below:

                  (a) The  opinion  of  counsel  for  the  Seller,  in form  and
substance  reasonably   satisfactory  to  the  Purchaser  and  its  counsel  and
containing  such  assumptions and limitations as are customary or reasonable for
opinion letters normally provided in similar transactions, covering at least the
following:

                           (i) The Company is a North Carolina Limited Liability
Company  validly  existing and in good  standing  under the laws of its state in
which it was chartered;

                           (ii) The execution, delivery, and performance of this
Agreement,  the other Acquisition  Documents to which the Seller is a party, and
the other  instruments  or  documents  required  to be executed by the Seller in
connection  herewith and therewith have been authorized by all necessary Company
and other actions of the Seller and have been duly executed and delivered by the
Seller and  constitute  legal,  valid,  and binding  obligations of such parties
enforceable in accordance with their terms to the extent the Purchaser should be
able to realize the practical  benefits thereof,  except as such  enforceability
may be limited by bankruptcy, reorganization, insolvency, moratorium, or similar
laws  affecting  the  enforcement  of  creditor's   rights  and  except  as  the
availability of suitable remedies may be subject to judicial discretion;

                           (iii)   The    consummation   of   the   transactions
contemplated by this  Agreement,  the other  Acquisition  Documents to which the
Seller  is a party,  and all  other  instruments  or  documents  required  to be
executed by the Seller in connection  herewith and therewith will not violate or
result in a breach of or constitute a default under the Articles of Organization
or Operating Agreement or other organizational agreements of the Company;

                           (iv) Except for such actions and  proceedings  as are
disclosed  to the  Purchaser in writing,  Seller's  counsel does not know of any
limitation,   governmental   investigation,   actions,  or  suits,   pending  or
threatened,  against  or  relating  to the  transactions  contemplated  by  this
Agreement or any other Acquisition Document to which Seller is a party; and

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 23

                           (v) On best  information and belief,  the transaction
contemplated  herein will not violate  any  securities  ("blue sky laws") of the
state of North Carolina.

                  (b) Certified copies of the resolutions adopted by the Members
and Managers of the Company, or by appropriate  committees thereof,  authorizing
this  Agreement  and  the  other  Acquisition  Documents  and  the  transactions
contemplated hereby and thereby.

                  (c)  Certificates  of the  Secretary  of  State of each of the
states in which the  Company is  qualified  to  transact  business  as a foreign
corporation,  dated no earlier than May 1, 2005, respecting the good standing of
the Company in each such  jurisdiction  the Company is domesticated or qualified
by certificate to conduct business.

                  (d)  Operating  Agreement  of the Company  certified as of the
Closing Date by a manager of the Company.

                  (e) Any and all licenses or  renewals,  and consents as may be
necessary to effect the continuation of the Company's  Business by the Purchaser
following the Closing of this Agreement.

                  (f) Such other  documents,  instruments,  or  certificates  as
shall be  reasonably  requested by the  Purchaser or its counsel  (inclusive  of
executed  conveyances  of  certificates  or units of ownership  and or cancelled
certificates  and other  assignments,  waivers and necessary  releases of liens,
mortgages and financial statements and security or UCC filings).

         5.6 Environmental  Report. If the Purchaser shall choose at its expense
to retain an  environmental  consulting  firm to render an  environmental  audit
report  respecting  the  Company  and such firm  renders a report  that  details
violations of federal,  state, or local  environmental  Requirements of Law, the
Seller shall have cured or shall have caused the cure of such  violations or the
Purchaser  shall have waived such  compliance  with this Section 5.6;  provided,
however, that the Seller shall not be obligated to cure any such violation.

         5.7  Certificates  of the Seller.  The Seller shall have furnished such
certificates  of its  managers and others as may  reasonably  be required by the
Purchaser to evidence  compliance  with the conditions set forth in this Article
5.

         5.8 Seller's  auditors and Purchaser's  auditors shall have agreed upon
both the method of compilation and accuracy of the financial  statements for the
Company from January 1, 2005 through the date of Closing.

         5.9  Seller  and   Purchaser   shall  have   agreed   upon  a  baseline
environmental audit as provided in Section 9.3 (e).

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 24

                                   ARTICLE VI
                       CONDITIONS TO SELLER'S OBLIGATIONS

         The  obligation of the Seller under this  Agreement to  consummate  the
Closing on the Closing Date shall be subject to the  satisfaction,  on or before
the Closing Date, of each of the following conditions.

         6.1  Representations  and  Warranties  True.  The  representations  and
warranties of the Purchaser contained herein, in the other Acquisition Documents
(including,  without limitation, all schedules and exhibits hereto and thereto),
and in all certificates and documents delivered by the Purchaser,  shall be true
and  accurate  as  of  the  Closing  Date,   except  for  changes  permitted  or
contemplated by this Agreement.

         6.2 Performance. The Purchaser shall have performed and complied in all
material respects with all agreements,  obligations,  and conditions required by
this  Agreement to be performed or complied  with by it on or before the Closing
Date.

         6.3 Closing  Documents. The  Purchaser shall have  delivered  or caused
to be  delivered to the Seller the documents and instruments described below:
..
                  (a) The cash  payment as provided in Article I Section 4 (1.4,
above),  and  payment  and  satisfaction  in full of the Blue  Ridge II  Limited
Partnership  loan as provided in Section 1.3 (a) above,  and satisfaction of the
Whitehall loan as provided in Section 1.3(b) above.

                  (b) A certified copy of the resolutions  adopted by the Boards
of Directors of the Purchaser and its parent corporation, TAT Technologies, Ltd.
authorizing  this  Agreement  and  the  other  Acquisition   Documents  and  the
transactions contemplated hereby and thereby.

                  (c) The  opinion of  counsel  for the  Purchaser,  in form and
substance  reasonably  satisfactory to the Seller and its counsel and containing
such  assumptions  and  limitations  as are customary or reasonable  for opinion
letters  normally  provided  in  similar  transactions,  covering  at least  the
following:

                           (i) The Purchaser is a corporation  validly  existing
and in good standing under the laws of the State of Oklahoma;

                           (ii) The execution,  delivery, and performance of the
Agreement,  the other Acquisition Documents to which it is a party and the other
instruments or documents  required to be executed by the Purchaser in connection
herewith and  therewith,  have been  authorized by all  necessary  corporate and
other  actions of the Purchaser and have been duly executed and delivered by the
Purchaser and  constitute  the legal,  valid,  and binding  obligations  of such
parties  enforceable  in  accordance  with their  terms to the extent the Seller
should  be able to  realize  the  practical  benefits  thereof,  except  as such
enforceability  may  be  limited  by  bankruptcy,  reorganization,   insolvency,
moratorium,  or similar laws affecting the enforcement of creditors'  rights and
except as the  availability  of  suitable  remedies  may be subject to  judicial
discretion;

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 25

                           (iii)   The    consummation   of   the   transactions
contemplated by this  Agreement,  the other  Acquisition  Documents to which the
Purchaser is a party,  and all other  instruments  or  documents  required to be
executed by the Purchaser in connection  herewith and therewith will not violate
or  result  in a breach  of or  constitute  a  default  under  the  Articles  of
Incorporation, By-Laws or other organizational agreements of the Purchaser; and

                  (d) Such other  documents,  instruments,  or  certificates  as
shall be reasonably requested by the Seller or its counsel.

         6.4 Seller shall have reached an agreement with Blue Ridge  Investments
II, Limited Partnership and its parent and affiliated companies, and at or prior
to Closing shall have consummated the same, whereby the warrant and other rights
and interest of Blue Ridge  Investments  II, Limited  Partnership in the Company
shall be released  and  terminated,  and Jim Taylor  shall have  terminated  and
released any and all options as are in his favor to acquire  additional units of
ownership or future Membership Interests in the Company.

         6.5 Seller and Buyer shall have  agreed  upon a baseline  environmental
audit as provided in Section 9.3 (e).

                                   ARTICLE VII
                              CLOSING; CLOSING DATE

         7.1  Closing.  The closing (the  "Closing")  will be held in on July 6,
2005 at 9:00 a.m., at the offices of Blancato,  Doughton & Hart,  Winston-Salem,
N.C, or at such other time and place as the parties  hereto may  mutually  agree
upon in writing  (the  "Closing  Date"),  at which  Closing  the  documents  and
instruments  referred to in Articles V and VI hereof  will be  delivered  by the
parties.  Notwithstanding  Closing Date shall occur later, the effective date of
this agreement shall be July 1, 2005.

                                  ARTICLE VIII
                         CERTAIN POST-CLOSING COVENANTS

         8.1  Access.  After the  Closing  Date,  the  Purchaser  shall,  at the
Seller's expense, permit the Seller, from time to time, to inspect and copy such
books of account and other  records of the Seller and to utilize the services of
the Purchaser's or the Seller's employees, all as may be necessary or convenient
to enable  the  Seller  to  prepare  and file tax  returns.  Until  the  seventh
anniversary  of the Closing  Date,  the Purchaser  shall not,  without the prior
written consent of the Seller or its successors in interest,  destroy or dispose
of any such records. Notwithstanding any of the foregoing, no covenant contained
in this  Section 8.1 on the part of the  Purchaser  is intended  to, and nothing
herein  shall be  construed  to,  benefit or confer any rights  upon any person,
firm, or corporation other than the Seller.

         8.2 Non-Competition Requirements.

                  (a) The Purchaser and the Seller agree that the Purchase Price
was fixed on the basis that the transfer of the Transferred  Membership Interest
to the Purchaser would provide the Purchaser with the full benefit and good will
of the Company as it existed on the

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 26

Closing  Date.  The Seller  acknowledges  that it is proper for the Purchaser to
have assurance that the value of the Transferred Membership Interest will not be
diminished by acts of the Seller after the Closing Date.

         (b)  Excluding  Member  Jim  Taylor  because  of  his  minor  ownership
interest.,  the covenant of the other Members of the Company not to compete with
the Company following the transfer of their Transferred  Membership Interests to
the Purchaser at Closing, is a material inducement for the Purchaser to purchase
the Company.  Purchaser has committed additional consideration by this Agreement
to pay (the  "Non-Competition  Payments") the Members,  excluding Jim Taylor, in
consideration  of the full  and  faithful  performance  of the  covenant  not to
compete  as is set  forth  in this  Article,  collectively  the sum of  $600,000
payable  in 36  future  monthly  installments  of  $16,666.65  each  (the  final
installment  being  $16,666.90)  disbursed  to Members  monthly as and for their
respective  Covenants  Not To Compete  as set forth in this  Article 8 Section 2
(8.2), the first installment  commencing on like date as the date of Closing for
each successive  month following the date of Closing,  for a total of 36 months,
payable to Members as follows:

<TABLE>
<CAPTION>
         Member Name                %                Amount Mo.        Amount 36th      3 Year Total
         -----------               ---               Installment       Installment      ------------
                                                     -----------       -----------
           <S>                     <C>              <C>               <C>               <C>

           Claude L. Buller        33 1/3%           $5,555.55         $5,555.75        $200,000.00
           Paul R. Hilliard        33 1/3%           $5,555.55         $5,555.75        $200,000.00
           Thomas W. Ferrell       33 1/3%           $5,555.55         $5,555.75        $200,000.00

           TOTAL                   100%             $16,666.65        $16,667.25        $600.000.00
</TABLE>

         (c) In  consideration  of the  foregoing,  Claude  L.  Buller,  Paul R.
Hilliard  and Thomas W.  Ferrell  covenant  and agree  that,  commencing  on the
Closing  Date  and  ending  on like  anniversary  date of the  month  36  months
following the Closing Date ("3 Year Anniversary of Closing Date"), they will not
(i) directly or indirectly compete with, or own, manage,  operate, or control or
participate  in the ownership,  management,  operation or control of, or provide
consulting services to, any business,  firm, corporation,  partnership,  person,
proprietorship  or other  entity which is engaged in the  Company's  Business of
APU,  propeller or landing gear maintenance,  repair and overhaul or parts sales
(the "Restricted  Business"),  (ii) directly or indirectly solicit employment by
any person,  partnership,  corporation  or other entity of any of the employees,
consultants, agents, or independent contractors of the Company (for this purpose
the terms "employees,"  "consultants,"  "agents," and "independent  contractors"
shall  include any persons  having such status with regard to the Company at any
time during the six (6) months preceding any solicitation in question), or (iii)
solicit,  interfere with, or endeavor to entice away from the Company, on behalf
of any person,  partnership,  corporation,  or other entity, any customer of the
Restricted Business of the Company.  The foregoing provisions shall not apply to
investments in shares of stock of a corporation traded on a national  securities
exchange  or on the  national  over-the-counter  market,  which  shall  have  an
aggregate  market value, at the time of  acquisition,  of less than $100,000 and
constitute  less than two per cent of the  outstanding  shares of such  stock of
such corporation.  For purposes of this 8.2(c),  parts sales shall be defined as
the following:  (i) new and repaired or overhauled  parts,  including cores, for
APUs,  landing gear and propellers;  (ii) parts and logistic support for airline
heavy  maintenance  checks;  (iii)  consumables to both the airline and military
segments; and (iv) the

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 27

following rotable  components to both airlines and corporate  aviation segments:
(a) Honeywell air cycle machines, and (b) Frisby actuators.

         Anything to the contrary set forth in Section 8.2  notwithstanding,  it
is understood and agreed that a Member may,  without  breaching or violating the
provisions  and  covenants  contained in this Section 8.2, be employed by or may
participate  in the ownership,  management,  operation or control of, or provide
consulting  services to, any division,  subsidiary  or  affiliated  business not
engaged in the Restricted Business.  Provided, however, Ferrell may seek written
approval  from  Purchaser  following  Closing to accept  employment,  consulting
assignments or other work from companies,  entities or individuals  which may be
considered as indirect  competitors  because,  for example,  such employers have
divisions  which  compete  directly  with  Company,  and  Purchaser  may  at its
discretion provide written consent for such engagement or employment, which such
consent shall not be unreasonably withheld. Purchaser shall provide its response
to  Ferrell's  request in writing  within 30 days of receipt of that  request or
Purchaser shall be deemed to approve. the request.

                  (d) If any of the Members  commits a breach,  or  threatens to
commit a breach,  of any of the  provisions  of this Section 8.2, the  Purchaser
shall  have the  right  and  remedy,  in  addition  to any  others,  to have the
provisions of this Section 8.2 specifically  enforced by any court having equity
jurisdiction,  together with an accounting therefore,  it being acknowledged and
understood  by the Seller that any such breach or  threatened  breach will cause
irreparable  injury to the  Purchaser and that money damages will not provide an
adequate remedy therefore.  In addition to any remedy Purchaser may have against
the Members breaching this covenant not to compete, the Purchaser shall have the
right to suspend  payments  pendent lite, and set off or off set future payments
to breaching Member or Members against any judgment,  order or decree of a court
of  competent  jurisdiction  awarding  damages  to  Purchaser.  Anything  to the
contrary  set forth in the Section 8.2  notwithstanding,  it is  understood  and
agreed that upon a breach or  threatened  breach of the covenants set forth this
Section  8.2,  Purchaser's  remedies  shall be only  against  Member or  Members
committing or  threatening  to commit such breach,  and Purchaser  shall have no
claim against and no right to suspend payments to the other non-breaching Member
or Members.

                  (e) Members agree the territorial  limitation  under which the
covenant not to compete  will apply shall be  worldwide  and that Members do not
consider such broad territorial limits to be unreasonable,  but in the event any
court of competent  jurisdiction  shall determine the territorial limits of this
covenant to be unreasonable,  then in that event,  the geographical  territorial
limits shall be fixed by the court to the maximum geographical territory allowed
by the law.

         8.3 Consulting Services Requirements. During the first three (3) months
following the Closing Date and at Purchaser's request, Thomas W. Ferrell, Claude
L. Buller and Paul R. Hilliard each agree to provide up to a maximum of 10 hours
per month in consulting  services at no additional cost to Purchaser.  The date,
time  and  location  for the  provision  of such  consulting  services  shall be
mutually  agreed upon by  Purchaser  and the Member to perform  such  consulting
services.

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 28

         Should Purchaser request  consulting  services in excess of the 10 hour
monthly  maximum,  neither  Ferrell,  nor  Buller  nor  Hilliard  shall have any
obligation  to provide  such excess  services.  However,  if Ferrell,  Buller or
Hilliard  agree to  provide  any  consulting  services  in excess of the 10 hour
monthly  maximum  during the three (3) month period of time  following  Closing,
then in that event,  they will be paid, for actual hours worked at the same rate
of pay received by them from the Company prior to
Closing,  and  payable to them at times they were paid prior to  Closing.  After
conclusion of the third month following the Closing Date,  Purchaser and Members
may continue the consulting  services under terms as may be thereafter agreed by
them in writing;  however,  neither  Purchaser  nor the  Members  shall have any
obligation to continue such consulting services.

                                   ARTICLE IX
                                 INDEMNIFICATION

         9.1 Survival.  Notwithstanding  (i) the making of this Agreement,  (ii)
any  examination  made by or on  behalf  of the  parties  hereto,  and (iii) the
Closing  hereunder,  (A)  the  representations  and  warranties  of the  parties
contained  herein or in any  certificate  or other document  delivered  pursuant
hereto or in connection  herewith shall survive until the 3 Year  Anniversary of
Closing Date, except for the representations and warranties made in Section 2.13
hereof (Tax Returns and Payments),  which shall survive until  expiration of the
applicable  statute of limitations for the underlying  cause of action;  and (B)
the covenants and agreements required to be performed after the Closing pursuant
to any  provision of this  Agreement,  including  this Article 9, shall  survive
until fully performed or fulfilled.  No action for  indemnification  pursuant to
Sections  9.3 or 9.4  may be  brought  after  the  applicable  expiration  date,
provided,  however,  that if before such date one party  hereto has  notified in
writing the other party hereto of a claim for  indemnity  hereunder  (whether or
not formal legal action shall have been commenced  based upon such claim),  such
claim shall continue to be subject to indemnification in accordance herewith.

         9.2 Limitations on Member's Indemnity:

         (a) Purchaser shall not be entitled to any indemnification,  whether in
the form of payment or offset  against  the  Non-Competition  Payments,  for any
Damages,  unless  and until the  aggregate  amount of all  Damages  suffered  or
incurred  by  Purchaser  exceeds  $100,000.00,  in which  event such  Damages of
Purchaser  may  be  claimed  only  to  the  extent  that  such  Damages   exceed
$100,000.00.  Provided  however,  this  $100,000.00  minimum  shall not apply to
Damages  based on income  taxes of the  Company  pursuant  to Section  9.3(d) or
Damages based upon  Requirements  of Law related to Hazardous  Substances or any
release,  spill or discharge by the Company of any Hazardous Substances onto any
property  owned,  leased or operated by the Company  pursuant to Requirements of
Law related to Hazardous  Substances  or any release,  spill or discharge by the
Company of any Hazardous  Substances onto any property owned, leased or operated
by the Company pursuant to Section 9.3(e). below.

         (b) Except only as provided in 9.2(c) below,  none of the Members shall
have  any   liability   to  Purchaser   or  its   successors   or  assigns  (for
indemnification,  Damages or otherwise)  in excess of the unpaid  amounts of the
Non-Competition  Payments pursuant to Section 8.2, and Purchaser's sole recourse
for Damages under Section 9.3 or otherwise under this

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 29

Agreement, shall be as an offset against the Non-Competition Payments coming due
under Section 8.2 above.

         (c) Provided, however, the Damages limitation set forth in 9.2(b) above
shall not apply to Damages incurred by Purchaser for undisclosed  liabilities on
account  of  Seller's   actual   fraud,   intentional   deceit  or   intentional
misrepresentation (for example, undisclosed liabilities of which the Members had
actual knowledge and  intentionally  failed to disclose the same or actively and
intentionally concealed the same).

         (d) The amount of any Damages of Purchaser  under  Section 9.3 shall be
reduced by the amount,  if any,  received by  Purchaser  from any third  person,
including, without limitation, any insurance company or other insurance provider
(such amount  being  referred to herein as a "Third  Party  Reimbursement"),  in
respect of the Damages suffered  thereby.  If, after receipt by Purchaser of any
indemnification  payment  or  off-set  against  the  Non-Competition   Payments,
Purchaser  receives a Third Party  Reimbursement  in respect of the same Damages
for which  indemnification  was made and such Third Party  Reimbursement was not
taken into account in assessing the amount of  indemnification,  then  Purchaser
shall turn over all of such Third Party Reimbursement to the Members (other than
Jim Taylor) up to the amount of the indemnification paid pursuant hereto.

         (e)   Anything   to  the   contrary   contained   in   this   Agreement
notwithstanding,  the  Members  shall  have no  obligation  to or  liability  to
indemnify Purchaser for any Damages for undisclosed liabilities or for breach of
any  representation  or warranty  where the basis of such  liabilities or breach
were  discovered by or known to Purchaser  prior to Closing (the burden of proof
being  on the  Members  that  the  basis of such  liabilities  were  known to or
discovered  by Purchaser  prior to Closing).  Further,  anything to the contrary
contained  in  this  Agreement  notwithstanding,   the  Members  shall  have  no
obligation  to  or  liability  to  indemnify   Purchaser  for  any  Damages  for
undisclosed  liabilities or for breach of any  representation  or warranty where
the basis of such  liabilities  or breach were disclosed to Purchaser in writing
(including paper,  photocopies,  facsimiles,  e-mails,  electronic,  magnetic or
digital data contained on a computer readable disk,prior to Closing.

         (f)   Anything   to  the   contrary   contained   in   this   Agreement
notwithstanding,  and except for Seller's  post closing  covenants  set forth in
Section 8.2 above,  Purchaser's sole remedy for any breach or default under this
Agreement (including any breach of representation or warranty), shall be a claim
for indemnification pursuant to Section 9.3 below, as limited by the limitations
set forth in Section 9.2.

         (g) At least one printed hard copy of all items contained in Disclosure
Schedules shall be maintained by the Company  following Closing and for a period
of five years following Closing.  All other copies of this Agreement provided to
Seller  and  Purchaser  shall  provide  copies of all  Disclosure  Schedules  on
magnetic or ditigal data contained on computer readable disk.

         9.3 Indemnification by the Seller. Subject to the conditions of Article
IX, Section 9 (9.2, above), the Members,  except for Jim Taylor, shall indemnify
and hold the Purchaser and its successors and assigns harmless in respect of any
and all claims, losses, damages,  liabilities, and expenses (including,  without
limitation, settlement costs and legal, accounting, and other

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 30

expenses in connection therewith) (collectively,  the "Damages") incurred by the
Purchaser and its successors and assigns in connection  with each and all of the
following.

                  (a) Any claim by any person or other  entity for any  broker's
or  finder's  fee or similar fee  charged  for  commission  that arises from any
action, statement, or commitment made by the Seller or its agents or Affiliates.

                  (b) Any  breach or other  failure  to  perform  any  covenant,
agreement,  or obligation of the Seller  contained in this Agreement,  any other
Acquisition  Document  or any  other  instrument,  including  all  certificates,
contemplated hereby or thereby.

                  (c) Any breach of any representation or warranty by the Seller
contained  in this  Agreement,  any  other  Acquisition  Document  or any  other
instrument, including all certificates, contemplated hereby or thereby.

                  (d) The  Company's   failure  to pay  any  income  taxes it is
 required  to pay  prior to Closing.

                  (e) To the extent not otherwise indemnified under that certain
Indemnity  Agreement  in favor of  Company  and  Members  by  Piedmont  Aviation
Services,  Inc. and Piedmont Hawthorne  Aviation,  Inc. dated November 18, 2002,
which is attached  hereto marked Exhibit "A" and made a part hereof  ('Hawthorne
Indemnity"),  Members  (excluding  Jim  Taylor),  shall  additionally  indemnity
Purchaser  and  Company  in the same  manner  and  upon  the  same  terms of the
Hawthorne  Indemnity,  (which  for  purposes  of  this  indemnity,  the  Members
excluding  Jim Taylor  being  identified  as  "Indemnitor"  and the  Company and
Purchaser as well as their members, managers, officers, directors, shareholders,
employees, representative and attorneys being identified as Indemnitees as those
terms are defined in the Hawthorne  Indemnity.)  for Any Damages arising between
the dates of  November  18,  2002 and the  Closing  Date which are caused by the
Company's  failure to comply with any  Requirements  of Law related to Hazardous
Substances  or any release,  spill or discharge by the Company of any  Hazardous
Substances  onto  any  property  owned,   leased  or  operated  by  the  Company
(including,   without  limitation,  costs  of  response,  removal,  remediation,
investigation,  corrective action,  property damage,  personal injury,  economic
loss,  damage to natural  resources,  health  assessments  and  health  studies,
settlement,  interest accruing on recoverable amounts, penalties, and attorneys'
fees)  accruing to the Purchaser or the Company,  including  (i) remedial  work,
monitoring,  removal or other costs and expenses  associated with  environmental
matters with respect to any Hazardous  Substances  required by any environmental
Requirements of Law, (ii) injury, disease, or death of any person (including any
employee,  former employee, agent, or representative of any subcontractor of the
Company) arising out of any  environmental  matters,  or (iii) any damage to any
property.  (hereinafter  all of the above  damages  referenced  as  "Remediation
Damages')  The standard in  determination  of  contamination  levels  applicable
during the Members  operation of the Company upon which claims for contamination
may be made by the  Indemnitees  shall be the difference in  contaminate  levels
disclosed: (i) by the Environmental Site Aassessment results determining maximum
soil  contaminant  concentrations  listed on  Exhibits A and B of the  Hawthorne
Indemnity and results determining maximum soil contaminant concentrations listed
in the  Environmental  Site  Assessments  determining  maximum soil  contaminant
concentrations prepared for the Purchaser prior to Closing which is attached

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 31

hereto as Exhibit "B" and made a part hereof.. Members liability for claims made
under this Section  shall not exceed the  Remediation  Damages as are ordered by
any governmental;  authority having competent  jurisdiction  over  environmental
matters.

         9.4 Indemnification by the Purchaser.  The Purchaser and its successors
and assigns shall  indemnify,  defend and hold harmless the Seller,  each of the
Members,  and their respective  successors and assigns in respect of any and all
Damages incurred by Seller, each of the Members, and their respective successors
and assigns in connection with each and all of the following.

                  (a) The claim by any person for any  broker's or finder's  fee
or similar fee charged for commission that arises from any actions,  statements,
or commitments made by the Purchaser or its agents or Affiliates.

                  (b) The  breach or other  failure  to  perform  any  covenant,
agreement,  or obligation of the  Purchaser  contained in this  Agreement or any
other Acquisition  Document or any other instrument,  including all certificates
contemplated  hereby or  thereby,  including  failure  to pay or hold any Member
harmless from assumed liabilities and obligations as are identified in Article I
section 3 (e.g., 1.3), above.

                  (c)  Any  breach  of any  representation  or  warranty  by the
Purchaser  contained in this Agreement or any other Acquisition  Document or any
other instrument,  including all certificates,  contemplated  hereby or thereby,
including  failure to pay or hold any Member  harmless from assumed  liabilities
and obligations as are identified in Article I section 3 (e.g., 1.3), above.

         9.5 Notice and  Defense of Claim.  Whenever  any claim  shall arise for
indemnification   hereunder,   the  party  entitled  to   indemnification   (the
"Indemnified  Party")  shall  provide  written  notice to the other  party  (the
"Indemnifying  Party")  within 60 (sixty) days of becoming aware of the right to
indemnification  and,  as  expeditiously  as  possible  thereafter,   the  facts
constituting  the basis for such claim. In connection with any claim giving rise
to  indemnity  hereunder,  resulting  from or arising  out of any claim or legal
proceeding by a person who is not a party to this  Agreement,  the  Indemnifying
Party,  at its sole cost and expense and upon written notice to the  Indemnified
Party, may assume the defense of any such claim or legal proceeding with counsel
reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be
entitled to participate in the defense of any such action,  with its counsel and
at its own expense. If the Indemnifying Party does not assume the defense of any
such claim or litigation  resulting there from, the  Indemnified  Party may, but
shall not be  obligated  to,  defend  against such claim or  litigation  in such
manner as it may deem appropriate  including,  but not limited to, settling such
claim or litigation,  after giving notice of it to the  Indemnifying  Party,  on
such terms as the Indemnified  Party may deem appropriate and no action taken by
the  Indemnified  Party in  accordance  with such defense and  settlement  shall
relieve  the  Indemnifying  Party  of  its  indemnification  obligations  herein
provided with respect to any Damages resulting there from.

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 32

                                    ARTICLE X
                                   TERMINATION

10.1  Termination.  This  Agreement  may be  terminated  at any time  before the
Closing Date:

                  (a) By mutual consent of the Purchaser and the Seller;

                  (b) By either the  Purchaser  or the Seller if the Closing has
not  occurred on or before the Closing  Date as may be extended  for  reasonable
cause,  provided  that this  provision  shall not be  available to the party who
fails or refuses to consummate the transactions  contemplated  herein or to take
any other action referred to herein as necessary to consummate the  transactions
contemplated hereby in breach of such party's obligations contained herein; and

                  (c) By either the  Purchaser or the Seller if there has been a
material  breach on the part of the other party in any material  representation,
warranty or covenant  set forth in this  Agreement  that is not cured within ten
(10)  business  days after such other  party has been  notified of the intent to
terminate this Agreement pursuant to this clause 10.1 (c).

                  (d) By Purchaser in the event of its  inability to meet any of
the four (4) contingencies set forth in paragraph 3 of the Letter of Intent from
Purchaser  to  Seller  dated  March  29,  2005  (the   "Contingencies"),   these
Contingencies,  and  only the  Contingencies,  being  specifically  incorporated
herein by  reference  and made a part  hereof  as  though  fully set out in this
Agreement

         10.2  Effect  of  Termination.  In the  event  of  termination  of this
Agreement as expressly permitted under Section 10.1 hereof, this Agreement shall
forthwith  become  void  and of no  force  and  effect,  and  there  shall be no
liability on the part of either the Seller,  the Purchaser,  or their respective
managers, officers,  directors,  representatives or agents, provided however, if
such  termination  occurs  pursuant  to Section  10.1(c) and  resulted  from the
material  misrepresentation  or material  breach by a party of the  covenants of
such party contained in this Agreement, (and the breach remains uncured for more
than the 10 day period of time) such breaching  party shall be fully liable as a
result of the material  misrepresentation or breach. In the event of termination
hereunder  before the  Closing,  each party shall  return  promptly to the other
Party all  documents,  work  papers,  and  other  material  of the  other  party
furnished or made available to such party or its  representatives  or agents and
all copies thereof.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

         11.1 Amendment and Modification;  Waiver of Compliance.  Subject to the
applicable law, this Agreement may be amended,  modified,  and supplemented only
by written agreement signed by the Purchaser and the Seller.  Any failure by any
party to this Agreement to comply with any obligation,  covenant,  agreement, or
condition  contained  herein  may be  expressly  waived in  writing by the other
parties  hereto,  but such waiver or failure to insist  upon  strict  compliance
shall not operate as a waiver of, or estoppel with respect to, any subsequent or
other  failure.  Whenever this  Agreement  requires or permits  consent by or on
behalf of any

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 33

party  hereto,  such  consent  shall be given  in a manner  consistent  with the
requirements for a waiver of compliance as set forth in this Section.

         11.2 Fees and Expenses.  Except as otherwise  provided herein,  each of
the parties hereto will pay its own fees and expenses (including  attorneys' and
accountants'  fees, legal costs, and expenses)  incurred in connection with this
Agreement,   the  other  Acquisition  Documents  and  the  consummation  of  the
transactions contemplated hereby and thereby.

         11.3 Notices. All notices, requests,  demands, and other communications
required or permitted  hereunder shall be in writing and shall be deemed to have
been given if  delivered  by hand,  overnight  courier,  or mailed  certified or
registered mail with postage prepaid as follows.

                  (a) If to the Purchaser, to:

                           Limco-Airepair, Inc.
                           5304 South Lawton Ave
                           Tulsa, OK 74107
                           Attention: Shaul Menachem, President

                           With a copy to: Jack N. Herrold
                                           Herrold Herrold & Co., Lawyers, P.C.
                                           300 ONEOK Plaza
                                           100 West Fifth Street
                                           Tulsa OK 74103

                  (b) If to the Seller, to:

                           Claude L. Buller
                           115 Manchester Place
                           Greensboro, NC 27410

                            Paul R. Hilliard
                           2803 Kinsey Ct.
                           Summerfield, NC 27358

                           Thomas W. Ferrell
                           315 Beechcliff Ct.
                           Winston-Salem, NC 27104

                           Jim Taylor
                           601 Chesham Dr.
                           Kernersville, NC  27284

                           With Copy to:  Andrew D. Hart
                                          Blancato Doughton & Hart PLLC
                                          633 W Fourth Street, STE 150
                                          Winston-Salem, N.C. 27101

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 34

         11.4 Assignment.  This Agreement and all of the provisions hereof shall
be  binding  upon and  inure to the  benefit  of the  parties  hereto  and their
respective successors and permitted assigns.

         11.5 Governing Law. This Agreement and the legal relations  between the
parties hereto shall be governed by, and construed in accordance  with, the laws
of the State of Delaware,  without  reference to the conflict of laws principles
thereof;  provided  however,  Section 8.2  concerning  Non-Competition  shall be
governed by, and  construed in  accordance  with either the laws of the State of
North  Carolina or the laws of the State of Oklahoma,  whichever best allows for
enforcement  of the  covenant  not to  compete in  accordance  with the terms of
section 8.2.

         11.6 Counterparts. This Agreement may be executed simultaneously in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall  constitute one and the same  instrument.  Faxed signatures
shall have the same effect as an original signature.

         11.7  Headings.  The headings  contained in this Agreement are inserted
for convenience only and shall not constitute a part hereof.

         11.8 Attorney fees in Litigation. The prevailing party in any litigated
claim between the parties hereto  (including those brought in Arbitration  under
Section  11.11,  below) shall be entitled to recover all costs and attorney fees
they  have  expended  as  may  deemed  reasonable  by  the  court  of  competent
jurisdiction in which the controversy or action is pending.

         11.9  Entire  Agreement.  This  Agreement,   including  the  Disclosure
Schedules, the exhibits hereto and other documents referred to herein which form
a part hereof,  embody the entire  agreement  and  understanding  of the parties
hereto in respect of the subject matter contained herein and supersede all prior
agreements and  understandings  between the parties with respect to such subject
matter,  including, by way of illustration and not by limitation,  the Letter of
Intent  dated March 29,  2005  (except the terms  therein  contained  concerning
Purchaser  contingencies,  which have been  incorporated  herein by  reference).
There are no  restrictions,  promises,  warranties,  covenants,  or undertakings
other than those expressly set forth or referred to herein.

         11.10  Definitional  Provisions.  All terms  defined in this  Agreement
shall have such  defined  meanings  when used in any exhibit,  schedule,  or any
certificate  or other  document  made or delivered  pursuant  hereto or thereto,
unless otherwise defined therein.

         11.11 Arbitration.  Any and all controversies and claims arising out of
or relating to this  Agreement or any of the  Acquisition  Documents,  or breach
thereof,  shall  be  settled  by  binding  private  arbitration.  The  place  of
arbitration  shall  be  Greensboro,   North  Carolina.   There  shall  be  three
arbitrators,  who  shall be  licensed  attorneys,  chosen  as  follows:  (a) one
arbitrator shall be chosen by Purchaser,  and (b) one arbitrator shall be chosen
by the Members,  and (c) the two arbitrators thus named will then be directed to
name a third  arbitrator.  The  decisions and  determinations  by any two of the
three  arbitrators  shall be  binding  on all  parties  to the  arbitration  The
arbitration shall be administered in accordance

<PAGE>

MEMBERSHIP INTEREST AGREEMENT
Page 35

with the American Arbitration Association's Commercial Arbitration Rules, except
that (i) there shall be no  discovery  depositions,  unless any witness will not
personally appear and testify at the arbitration;  and (ii) each party agrees to
provide any  relevant  documents  requested  by the other  party,  except to the
extent such documents are not  discoverable  under  applicable  law. Any dispute
concerning discovery  depositions or the provision of documents shall be decided
by the arbitrators. Any award shall be a conclusive determination of the matter,
shall be binding  upon the parties  thereto and shall not be contested by any of
them.  Judgment on the award  rendered by the  arbitrator  may be entered in any
court having jurisdiction  thereof.  The parties shall share equally the cost of
the  arbitrator's  fees and  expenses  and any  administrative  expenses as they
arise.  As part of such  award,  the  prevailing  party  (as  determined  by the
arbitrator)  shall  be  awarded  the  arbitrator's  fees  and  expenses  and any
administrative expenses previously paid by such party.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the day and year first above stated.

                                               "Purchaser"

                                         LIMCO-AIREPAIR, INC.

                                         ---------------------------------
                                         by Shaul Menachem, President

                                               "Seller"

                                         PIEDMONT AVIATION COMPONENT
                                         SERVICE, L.L.C.

                                         ----------------------------------
                                         by Claude L. Buller, Authorized Manager
                                               "Member and Managers"

                                         -----------------------------------
                                         Claude L. Buller, Member and Manger

                                         ---------------------------------
                                         Paul R. Hilliard, Member and Manager

                                         ----------------------------------
                                         Thomas W. Ferrell, Member and Manager

                                         ----------------------------------
                                         Jim Taylor, Member and Manager

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