Document:

EX-10.5

 Exhibit 10.5 
  

 
 PURCHASE AGREEMENT 

dated 
 as of October 9th, 2017 
 between 

CONTRAIL AVIATION SUPPORT, LLC 

as Seller, 
 and 

AIRCO 1, LLC 
 as Buyer 

 
  

  

 TABLE OF CONTENTS 

 

											
		  				 		  	 	Page	 
			
	 1.
	  	 	 Definitions
	  	 	1	 
			
	 2.
	  	 	 Sale
	  	 	1	 
			
	 3.
	  	 	 Purchase Price; Deposit; Purchase Price Adjustment
	  	 	1	 
			
	 4.
	  	 	 Inspection of Airframe; Value at Closing; Delivery Condition; Deregistration;
Export
	  	 	2	 
			
	 5.
	  	 	 Representations and Warranties of Seller
	  	 	3	 
		  	 	        	(a) 	 	Organization, Etc.	  	 	3	 
		  	 	        	(b) 	 	Organizational Authorization	  	 	3	 
		  	 	        	(c) 	 	No Violation	  	 	3	 
		  	 	        	(d) 	 	Approvals	  	 	3	 
		  	 	        	(e) 	 	Valid and Binding Agreements	  	 	3	 
		  	 	        	(f) 	 	Litigation	  	 	4	 
		  	 	        	(g) 	 	Encumbrances	  	 	4	 
		  	 	        	(h) 	 	Brokers’ Fees	  	 	4	 
		  	 	        	(i) 	 	Title to Interests	  	 	4	 
		  	 	        	(j) 	 	Operation	  	 	4	 
			
	 6.
	  	 	Disclaimer	  	 	4	 
			
	 7.
	  	 	Representations and Warranties of Buyer	  	 	5	 
		  	 	        	(a) 	 	Organization, Etc.	  	 	5	 
		  	 	        	(b) 	 	Authorization	  	 	5	 
		  	 	        	(c) 	 	No Violation	  	 	5	 
		  	 	        	(d) 	 	Approvals	  	 	5	 
		  	 	        	(e) 	 	Valid and Binding Agreements	  	 	5	 
		  	 	        	(f) 	 	Litigation	  	 	6	 
		  	 	        	(g) 	 	Broker’s Fees	  	 	6	 
			
	 8.
	  	 	Conditions Precedent to the Obligations of Seller	  	 	6	 
		  	 	        	(a) 	 	Purchase Price	  	 	6	 
		  	 	        	(b) 	 	Due Authorization, Execution and Delivery	  	 	6	 
		  	 	        	(c) 	 	Representations and Warranties	  	 	6	 
		  	 	        	(d) 	 	Additional Information	  	 	6	 
		  	 	        	(e) 	 	Illegality	  	 	6	 
		  	 	        	(f) 	 	No Proceedings	  	 	6	 
		  	 	        	(g) 	 	Delivery Location	  	 	6	 
		  	 	        	(h) 	 	Approvals, Consents and Notices	  	 	7	 
		  	 	        	(i) 	 	Insurance	  	 	7	 

  
 i 

									
	 9.
	  	Conditions Precedent to the Obligations of Buyer	  	 	7	 
		  	        (a)	 	Due Authorization, Execution and Delivery	  	 	7	 
		  	        (b)	 	Representations and Warranties	  	 	7	 
		  	        (c)	 	Additional Information	  	 	7	 
		  	        (d)	 	Illegality	  	 	7	 
		  	        (e)	 	No Proceedings	  	 	7	 
		  	        (f)	 	Delivery Location	  	 	7	 
		  	        (g)	 	Material Damage	  	 	7	 
		  	        (h)	 	Liens	  	 	7	 
			
	 10.
	  	International Registry	  	 	8	 
			
	 11.
	  	Further Assurances	  	 	8	 
			
	 12.
	  	Taxes, Indemnities and Insurance	  	 	8	 
		  	        (a)	 	Buyer’s Obligations regarding Taxes	  	 	8	 
		  	        (b)	 	Seller’s Indemnity	  	 	8	 
		  	        (c)	 	Buyer’s Indemnity	  	 	8	 
		  	        (d)	 	Withholding	  	 	9	 
		  	        (e)	 	Contest Resolution	  	 	9	 
		  	        (f)	 	Cooperation	  	 	10	 
		  	        (g)	 	Notice of Claims	  	 	10	 
		  	        (h)	 	Insurance	  	 	10	 
			
	 13.
	  	Know Your Customer	  	 	10	 
			
	 14.
	  	Miscellaneous	  	 	11	 
		  	        (a)	 	Notices	  	 	11	 
		  	        (b)	 	Confidentiality	  	 	11	 
		  	        (c)	 	Limitation of Liability of Any Party	  	 	12	 
		  	        (d)	 	Headings	  	 	12	 
		  	        (e)	 	References	  	 	12	 
		  	        (f)	 	Governing Law	  	 	12	 
		  	        (g)	 	Arbitration/Jurisdiction	  	 	13	 
		  	        (h)	 	Severability	  	 	13	 
		  	        (i)	 	Amendments in Writing	  	 	13	 
		  	        (j)	 	Survival	  	 	13	 
		  	        (k)	 	Expenses	  	 	13	 
		  	        (1)	 	Execution in Counterparts	  	 	13	 
		  	        (m)	 	Entire Agreement	  	 	13	 
		  	        (n)	 	Exhibits and Schedules	  	 	14	 
		  	        (o)	 	Successors and Assigns	  	 	14	 
		  	        (p)	 	No Third Party Benefit	  	 	14	 
		  	        (q)	 	Assignment	  	 	14	 

  
 ii 

			
	SCHEDULES:
		
	Schedule 1	  	Definitions
	Schedule 2	  	Airframe Description; Purchase Price
	Schedule 3	  	Airframe Documents
	
	EXHIBITS:
		
	Exhibit A	  	Acknowledgment of Delivery
	Exhibit B	  	Certificate of Technical Acceptance
	Exhibit C	  	Warranty Bill of Sale

  
 iii 

 PURCHASE AGREEMENT 

THIS PURCHASE AGREEMENT, dated as of October         , 2017 (this “Agreement”), is
entered into between CONTRAIL AVIATION SUPPORT, LLC, a Wisconsin limited liability company (the “Seller”), and AirCo 1, LLC a Company organized under the laws of Delaware (the “Buyer”). 

WHEREAS, subject to the terms and conditions hereof, Seller desires to sell, transfer, and convey to Buyer, and Buyer desires to purchase from
Seller, one (1) used Boeing 737-800 Airframe and related Airframe Documents (as defined herein). 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements of the parties contained herein and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Seller and Buyer agree as follows: 
 1.
Definitions 
 Capitalized terms used in this Agreement shall have the meanings set forth in Schedule 1 to this Agreement. 

2. Sale 
 Subject to the terms and conditions of
this Agreement, Seller agrees to sell and transfer to Buyer, and Buyer agrees to purchase from Seller, all of Seller’s right, title and interest in, to and under the Airframe and Airframe Documents, free and clear of all liens. The Closing of
the purchase and sale of the Airframe shall take place upon satisfaction or waiver of all of the conditions set forth in Section 8 and Section 9 on the Anticipated Closing Date but not later than
the respective Final Closing Date, or at such other time as Buyer and Seller may agree in writing. 
 3. Purchase Price; Deposit; Purchase Price
Adjustment 
  

	(a)	 The purchase price for the Airframe shall be in the amount and allocated (as applicable) as set forth on
Schedule 2 hereto (collectively and individually, the “Purchase Price”). 

  

	(b)	 Buyer has previously paid to Seller a security deposit in the amount and allocation (as applicable) as set
forth on Schedule 2 hereto (the “Deposit”) which shall be non-refundable to Buyer unless any of the following events occur: 

 

	 	(i)	 Seller fails to deliver the Airframe to Buyer on or before the Final Closing Date; 

 

	 	(ii)	 the Airframe suffers an Event of Loss or Material Damage between the time of Technical Acceptance and Delivery;
or 

  

	 	(iii)	 Buyer does not issue the Certificate of Technical Acceptance to Seller. 

  
 Purchase Agreement 

Page 1 

	(c)	 Prior to Closing, Seller shall provide an original undated signed bill of sale in the form shown on Exhibit C,
and Buyer shall provide an original undated signed delivery receipt for the Airframe in the form shown on Exhibit A, to an escrow agent designated by Seller, and reasonably acceptable to Buyer, to be held by such escrow agent until Seller gives
notice that the full Purchase Price has been received by Seller. Said bill of sale shall be delivered (and shall only be delivered) to Buyer by the escrow agent upon receiving Seller’s email confirmation of receipt of the full Purchase Price in
cleared funds in Seller’s bank account, which confirmation Seller shall provide immediately upon receiving the Purchase Price. 

  

	(d)	 At Closing, Buyer shall deliver to Seller an amount equal to the Purchase Price (less the Deposit), in
immediately available funds, by wire transfer in an account designated in writing by Seller. 

 4. Inspection of Airframe; Value at
Closing; Delivery Condition; Deregistration; Export 
  

	(a)	 Buyer has previously had the opportunity to perform inspections of the Airframe and Airframe Documents and has
technically accepted the Airframe (by execution of this Agreement) subject only to the right of Final Inspection herein. Buyer will be provided the opportunity for a final inspection of the Airframe while the Airframe is located at Taiwan Taoyuan
International Airport and prior to Seller’s purchase of the Airframe from China Airlines Ltd. Buyer shall be entitled to perform such Final Inspection of the Airframe, including (i) a physical “walk around” inspection of the
Airframe interiors and exteriors; and (ii) an inspection of all Airframe Documents relating to such Airframe for the sole purpose of confirming that the Airframe and Airframe Documents are in substantially the same condition as at the time of
the execution of this Agreement (“Final Inspection”). Upon Buyer’s confirmation that the Airframe and Airframe Documents are in substantially the same condition as at the time of the execution of this Agreement, Buyer shall execute
and deliver to Seller the Certificate of Final Technical Acceptance. 

  

	(b)	 Closing shall occur at the Delivery Location. Seller shall provide to Buyer at the time of delivery all
Airframe Documents. 

  

	(c)	 At Closing, Seller shall, to the extent existing and assignable by Seller, assign to Buyer all rights in and to
all remaining warranties offered by the airframe manufacturers in respect of the Airframe. 

  

	(d)	 The Airframe (including the Airframe Documents) shall be delivered to Buyer in
“as-is” “where-is” basis. Seller makes no warranties, guarantees or representations of any kind, either express or implied, statutory or otherwise,
as to the condition of the Airframe. 

  

	(e)	 At Closing, Buyer shall pay for half of ferry costs, customs costs, DAR and similar fees to deliver the
aircraft of which the Airframe is a part from Taiwan to the U.S.A,, it being understood that Buyer’s share of any such actual costs which are not known at the time of Closing will be paid by Buyer to Seller promptly upon invoicing of the same.

  
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Page 2 

 5. Representations and Warranties of Seller 

On the date hereof and on the Closing Date Seller makes the following representations and warranties. 

 

	(a)	 Organization, Etc. Seller is duly organized, validly existing and in good standing under the laws of the
State of Wisconsin, U.S.A. with all requisite organizational power and authority to own, participate in or hold under lease its properties and enter into and perform its obligations under this Agreement and the Transfer Documents to which Seller is
or will be a party (collectively, the ‘‘Seller Agreements”); 

  

	(b)	 Organizational Authorization. Seller has taken, or caused to be taken, all necessary organizational
action (including, without limitation, the obtaining of any consent or approval of any of its board of directors or committee thereof or any officers required by its charter documents or other organizational agreements) to authorize the execution
and delivery of this Agreement and each of the Seller Agreements and the performance of its obligations hereunder and thereunder; 

  

	(c)	 No Violation. The execution and delivery by Seller of this Agreement and the Seller Agreements, the
performance by Seller of its obligations hereunder and thereunder and the consummation by Seller on the date hereof and on the Closing Date of the transactions contemplated hereby and thereby, do not and will not (i) violate or contravene any
provision of the charter documents or other organizational agreements of Seller, (ii) violate or contravene any law applicable to or binding on Seller or (iii) violate, contravene or constitute any default under, or result in the creation
of any lien upon, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other material agreement, instrument or document to which Seller is a party or by which Seller or any of its properties is or may
be bound or affected; 

  

	(d)	 Approvals. The execution and delivery by Seller of this Agreement and the Seller Agreements, the
performance by Seller of its obligations hereunder and thereunder and the consummation by Seller on the Closing Date of the transactions contemplated hereby or thereby do not and will not require the consent, approval or authorization of, or the
giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of any Government Entity; 

 

	(e)	 Valid and Binding Agreements. This Agreement has, and the Seller Agreements have been or as of the
Closing Date will have been, duly authorized, executed and delivered by Seller and, assuming the due authorization, execution and delivery by the other party or parties thereto, this Agreement and, as of the Closing Date, the Seller Agreements
constitute the legal, valid and binding obligations of Seller and are enforceable against Seller in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership,
moratorium and other similar laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity; 

  
 Purchase Agreement 

Page 3 

	(f)	 Litigation. There are no pending or, or to the knowledge of Seller, threatened actions or proceedings
against Seller before any court, administrative agency or tribunal which, if determined adversely to Seller, would prohibit or materially adversely affect the ability of Seller to perform its obligations under this Agreement or the Seller
Agreements; 

  

	(g)	 Encumbrances. Seller has not previously sold, assigned, encumbered, transferred or conveyed and, except
as contemplated hereby, has no obligation to sell, assign, encumber, transfer or convey, any of its right, title or interest in, to or under the Airframe; 

  

	(h)	 Brokers’ Fees. Buyer shall not be liable for the fees of any broker or other Person acting on
Seller’s behalf in connection with the transactions contemplated hereby; 

  

	(i)	 Title to Interests. Seller is the sole owner of the Airframe and has good title thereto, free and clear
of any and all Liens. At Closing, such title shall be transferred to Buyer free and clear of all Liens. 

 6. Disclaimer

 Other than the express representations and warranties of Seller set forth in Section 5 and in any other Transfer Document,
the Airframe is being sold and assigned hereunder, “AS IS, WHERE IS” and BUYER ACKNOWLEDGES AND AGREES THAT NEITHER THE SELLER NOR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, MEMBERS, EMPLOYEES OR REPRESENTATIVES HAS MADE OR WILL BE DEEMED
TO HAVE MADE ANY TERM, CONDITION, REPRESENTATION, WARRANTY OR COVENANT EXPRESS OR IMPLIED (WHETHER STATUTORY OR OTHERWISE) AS TO, AND BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ANY AND ALL WARRANTIES, OBLIGATIONS AND LIABILITIES, EXPRESS OR IMPLIED
(WHETHER STATUTORY OR OTHERWISE) WITH RESPECT TO, (a) THE CAPACITY, AGE, VALUE, QUALITY, DURABILITY, DESCRIPTION (EXCEPT AS TO SERIAL NUMBER), CONDITION (WHETHER OF THE AIRFRAME, ANY PART THEREOF OR ITS AIRFRAME DOCUMENTS), DESIGN, WORKMANSHIP,
MATERIALS, MANUFACTURE, CONSTRUCTION, OPERATION, DESCRIPTION, STATE, MERCHANTABILITY, PERFORMANCE, FITNESS FOR ANY PARTICULAR USE OR PURPOSE (INCLUDING THE ABILITY TO OPERATE OR REGISTER THE AIRFRAME OR USE THE AIRFRAME IN ANY OR ALL JURISDICTIONS)
OR SUITABILITY OF THE AIRFRAME, OR ANY PART THEREOF, (b) THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, KNOWN OR UNKNOWN, APPARENT OR CONCEALED, EXTERIOR OR INTERIOR, (c) THE ABSENCE OF ANY INFRINGEMENT OF ANY PATENT,
TRADEMARK, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY RIGHTS, (d) ANY IMPLIED WARRANTY ARISING FROM THE COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE OR (e) ANY OTHER REPRESENTATIONS OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED,
WITH RESPECT TO THE AIRFRAME OR ANY PART THEREOF OR ITS AIRFRAME DOCUMENTS, ALL OF WHICH ARE HEREBY EXPRESSLY EXCLUDED, IT BEING UNDERSTOOD THAT NOTHING HEREIN WILL BE DEEMED TO LIMIT THE BUYER FROM AVAILING ITSELF OF ANY WARRANTIES, COVENANTS, AND
REPRESENTATIONS OF ANY MANUFACTURER. 

  
 Purchase Agreement 

Page 4 

 7. Representations and Warranties of Buyer 

On the date hereof and on the Closing Date, Buyer makes the following representations and warranties as to itself, to Seller: 

 

	(a)	 Organization, Etc. Buyer is a limited liability company duly organized, validly existing and in good
standing under the laws of Delaware U.S.A., and has the power and authority to own, participate in or hold under lease its properties and to enter into and perform its obligations under this Agreement and the Transfer Documents to which Buyer is a
party (collectively, the “Buyer Agreements”);. 

  

	(b)	 Authorization. Buyer has taken, or caused to be taken, all necessary action (including, without
limitation, the obtaining of any consent or approval of its members required by its certificate of formation or limited liability company agreement) to authorize the execution and delivery of this Agreement and each of the Buyer Agreements, as the
case may be, and the performance of its obligations hereunder and thereunder; 

  

	(c)	 No Violation. The execution and delivery by Buyer of this Agreement and the Buyer Agreements, the
performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer on the Closing Date of the transactions contemplated hereby and thereby, do not and will not (i) violate or contravene any provision of the
certificate of formation, limited liability company agreement, other charter documents or other organizational agreements of Buyer, (ii) violate or contravene any law applicable to or binding on Buyer or (iii) violate, contravene or
constitute any default under, or result in the creation of any lien upon, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other material agreement, instrument or document to which Buyer is a party
or by which Buyer or any of its properties is or may be bound or affected; 

  

	(d)	 Approvals. The execution and delivery by Buyer of this Agreement and the Buyer Agreements, the
performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer on the Closing Date of the transactions contemplated hereby and thereby do not and will not require the consent, approval or authorization of, or the
giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (i) any trustee or other holder of any debt of Buyer and (ii) any Government Entity;

  

	(e)	 Valid and Binding Agreements. This Agreement has been and the Buyer Agreements have been or as of the
Closing Date will have been duly authorized, executed and delivered by Buyer and, assuming the due authorization, execution and delivery by the other party or parties thereto, this Agreement and, as of the Closing Date, the Buyer Agreements
constitute the legal, valid and binding obligations of Buyer and are enforceable against Buyer in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership,
moratorium and other similar laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity; 

  
 Purchase Agreement 

Page 5 

	(f)	 Litigation. There are no pending or, to the knowledge of Buyer, threatened actions or proceedings
against Buyer before any court, administrative agency or tribunal which, if determined adversely to Buyer would materially adversely affect the ability of Buyer to perform its obligations under this Agreement or the Buyer Agreements; and

  

	(g)	 Broker’s Fees. Seller shall not be liable for the fees of any broker or other person acting on
Buyer’s behalf in connection with the transactions contemplated hereby. 

  

	(h)	 Buyer shall disassemble the Airframe following delivery and completion of the ferry flight contemplated
hereunder, and shall not place the whole Airframe back in service. 

 8. Conditions Precedent to the Obligations of Seller

 The obligation of Seller to sell, transfer, assign and convey the Airframe to Buyer on each Closing Date is subject to the satisfaction or waiver of
the following conditions: 
  

	(a)	 Purchase Price. Seller shall have received the Purchase Price via wire transfer to Seller’s account
as specified in Section 3; 

  

	(b)	 Due Authorization. Execution and Delivery. This Agreement and each other Transfer Document shall have
been duly authorized, executed and delivered by each party thereto other than Seller; 

  

	(c)	 Representations and Warranties. The representations and warranties of Buyer contained herein and in any
other Buyer Agreements shall be true and correct as of Closing in all material respects; 

  

	(d)	 Additional Information. Seller shall have received such other documents and evidence with respect to
Buyer as Seller may reasonably request in order to establish the authority of Buyer to consummate the transactions contemplated by this Agreement and the other Transfer Documents on such date, the taking by Buyer of all appropriate action in
connection therewith and compliance by Buyer with the conditions set forth in this Agreement on such date; 

  

	(e)	 Illegality. The performance on such date of the transactions contemplated hereby, upon the terms
and conditions set forth herein, shall not, in the reasonable judgment of Seller, violate, and shall not subject Seller to any penalty or liability under, any law, rule or regulation binding upon Seller; 

 

	(f)	 No Proceedings. No legal or governmental action, suit or proceeding shall have been instituted or
threatened before any court, administrative agency or tribunal, nor shall any order, judgment or decree have been issued or proposed to be issued by any court, administrative agency or tribunal to set aside, restrain, enjoin or prevent the
consummation of this Agreement or the transactions contemplated hereby; 

  

	(g)	 Prior Purchase. The successful completion of Seller’s purchase of the Airframe from the existing
owner. 

  
 Purchase Agreement 

Page 6 

	(h)	 Delivery Location. The Airframe shall be located at the Delivery Location as defined hereunder;

  

	(i)	 Approvals, Consents and Notices. All approvals and consents of, or notices to, any Governmental Entity,
any trustee or holder of any indebtedness or obligation of the Seller or any other person, which are required in connection with the transaction contemplated by this Agreement shall have been duly obtained, given or accomplished; and

  

	(j)	 Insurance. Seller shall have received the insurance certificate specified in Section 11(h).

 9. Conditions Precedent to the Obligations of Buyer 

The obligation of Buyer to purchase the Airframe from Seller on each Closing Date is subject to the satisfaction or waiver of the following conditions: 

 

	(a)	 Due Authorization, Execution and Delivery. This Agreement and each other Transfer Document shall have
been duly authorized, executed and delivered by each party thereto other than Buyer; 

  

	(b)	 Representations and Warranties. The representations and warranties of Seller contained in the Transfer
Documents shall be true and correct as of the Closing Date in all material respects; 

  

	(c)	 Additional Information. Buyer shall have received such other documents and evidence with respect to
Seller as Buyer may reasonably request in order to establish the authority of Seller to consummate the transactions contemplated by this Agreement and other Transfer Documents on such date, the taking by Seller of all appropriate corporate action in
connection therewith and compliance by Seller with the conditions set forth in the Transfer Documents on such date; 

  

	(d)	 Illegality. The performance of the transactions contemplated hereby, upon the terms and conditions set
forth herein, shall not, in the reasonable judgment of Buyer, violate, and shall not subject any Buyer to any penalty or liability under, any law, rule or regulation binding upon such Buyer; 

 

	(e)	 No Proceedings. No legal or governmental action, suit or proceeding shall have been instituted or
threatened before any court, administrative agency or tribunal, nor shall any order, judgment or decree have been issued or proposed to be issued by any court, administrative agency or tribunal to set aside, restrain, enjoin or prevent the
consummation of this Agreement or the transactions contemplated hereby; 

  

	(f)	 Delivery Location. The Airframe shall be located at the agreed Delivery Location; 

 

	(g)	 Material Damage. No Event of Loss with respect to the Airframe shall have occurred; and

  

	(h)	 Liens. The Airframe shall be free and clear of all Liens. 

  
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 10. Further Assurances 

Each party agrees, upon the reasonable request of the other party, at any time and from time to time, promptly to execute and deliver all such further
documents, and promptly to take and forebear from all such action, as may be reasonably necessary or appropriate in order more effectively to confirm or carry out the provisions of this Agreement. Without limiting the foregoing, Seller shall, at the
sole cost and expense of Buyer, do or cause to be done all acts and things as may be required to perfect and preserve the title and interest of Buyer in the Airframe as Buyer may reasonably request, including, without limitation, that Seller shall,
upon request by Buyer and at Buyer’s cost and expense, cause all instruments which shall be executed pursuant to the terms hereof to be kept, filed and recorded in the appropriate office or offices pursuant to applicable laws to perfect,
protect and preserve the rights and interests of Buyer hereunder and in the Airframe. 
 11. Taxes, Indemnities and Insurance 

 

	(a)	 Buyer’s Obligations regarding Taxes. Buyer hereby agrees promptly to pay and indemnify each Seller
Indemnitee from and against any and all Taxes payable in connection with the sale, transfer and delivery by Seller to Buyer of the Airframe or in connection with any other transaction to occur on or after the Closing expressly contemplated hereby.
The foregoing shall expressly exclude any liability for Taxes on or based on or measured by the gross or net income of Seller or capital gains of Seller or Taxes imposed by a taxing authority in a jurisdiction that would not have been imposed but
for the business activity (other than the transactions contemplated hereby) or tax residence of Seller in such jurisdiction. The parties agree to cooperate in taking actions to minimize or eliminate Taxes in connection with this transaction.

  

	(b)	 Seller’s Indemnity. Seller hereby covenants and agrees that it will pay and assume liability for,
and indemnify, protect, defend, save and keep harmless each Buyer Indemnitee from and against, any and all liabilities, Taxes, obligations, losses, damages, settlements, claims, actions, suits, penalties, costs and expenses (including, without
limitation, reasonable fees and expenses of counsel) of whatsoever kind and nature which may at any time or from time to time be imposed upon, incurred by or asserted against any Buyer Indemnitee in any way relating to, resulting from or arising out
of (i) any inaccuracy or breach of any representation or warranty made by Seller under this Agreement or any Seller Agreements, (ii) any failure by Seller to have observed or performed any of its obligations under or in connection with
this Agreement or any Seller Agreements, or (iii) any claims made after Closing, solely to the extent any such claim is attributable to (A) the gross negligence or willful misconduct of Seller and occurring prior to Closing, or
(B) the existence of any Liens on the Airframe attributable to the period occurring prior to Closing. 

  

	(c)	 Buyer’s Indemnity. Buyer hereby covenants and agrees upon demand of Seller to pay and assume
liability for, and indemnify, protect, defend, save and keep harmless each Seller Indemnitee from and against, any and all liabilities, Taxes, fees, obligations, losses, 

  
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Page 8 

 
damages, settlements, claims, actions, suits, penalties, costs and expenses (including, without limitation, reasonable fees and expenses of counsel) of whatsoever kind and nature which may at any
time or from time to time be imposed upon, incurred by or asserted against any Seller Indemnitee in any way relating to, resulting from or arising out of (i) any inaccuracy or breach of any representation or warranty made by Buyer under this
Agreement or any Buyer Agreements, (ii) any failure by Buyer to have observed or performed any of its obligations under or in connection with this Agreement or any Buyer Agreements in respect of or to the extent attributable to the period from
and after Closing, or (iii) any claims made after Closing, solely to the extent such claim is not attributable (A) to the period occurring prior to Closing or (B) to Seller’s failure to perform its obligations under this
Agreement or the Seller Agreements. 
  

	(d)	 Withholding. If any Tax is required by law to be deducted or withheld from or with respect to any amount
paid or payable by Buyer or the Seller pursuant to this Agreement (the “Paying Party”) to the other party hereto (the “Receiving Party”), then the Paying Party shall pay such additional amount as shall be necessary
to enable the Receiving Party to receive, after all such withholding (including any withholding from or with respect to such additional amount), the amount that the Receiving Party would have received if such deduction or withholding had not been
made. 

  

	(e)	 Contest Resolution. If a claim is made by any tax authority against a party hereto (the “taxed
party”) with respect to any Tax of which another party (the “indemnifying party”) is obligated to indemnify under this Section 12, the taxed party shall promptly notify the indemnifying party of such
claim; provided, however, that the failure to give such notice will not prejudice or otherwise affect any of the rights of the taxed party hereunder unless such failure materially and adversely affects the indemnifying party in exercising its
contest rights hereunder or to the extent such failure results in any increase in, or fine or penalty with respect to, any amounts claimed to be payable by the indemnifying party to the taxed party pursuant to this Section 12. If reasonably
requested by the indemnifying party in writing, the taxed party shall (at the expense and direction of the indemnifying party) contest in the name of the taxed party or indemnifying party (as applicable), the validity, applicability or amount of
such Taxes so indemnified by (i) if permitted by applicable law without adverse consequences to the taxed party, resisting payment thereof, (ii) paying under protest, if protest is necessary or proper, and (iii) if payment be made,
using reasonable commercial efforts to obtain a refund thereof in appropriate administrative and judicial proceedings. If the taxed party becomes eligible for a refund of any Taxes paid by the indemnifying party, it shall notify the indemnifying
party and, if reasonably requested by the indemnifying party and permissible under applicable law, the taxed party shall consider in good faith any request by the indemnifying party to assign such right to the indemnifying party. Should the taxed
party obtain a refund of all or any part of the Taxes paid by the indemnifying party, the taxed party shall pay the indemnifying party the amount of such refund, plus, any interest thereon (net of any taxes imposed on such interest) obtained by the
taxed party from the taxing authority if fairly attributable to such Taxes. 

  
 Purchase Agreement 

Page 9 

	(f)	 Cooperation. Seller and Buyer shall reasonably cooperate so as to minimize any potential tax risk to
Buyer or Seller as a result of the transactions contemplated hereby. Seller and Buyer shall provide one another with such assistance as may reasonably be required in connection with the preparation of any tax return, any audit or other examination
by any taxing authority, or any judicial or administrative proceedings relating to liability for Taxes arising from the transactions contemplated by this Agreement, and shall provide one another upon written request with any records or information
that are relevant to such Tax return, audit or examination or proceedings. The party requesting assistance, records or information under the preceding sentence shall reimburse the other for reasonable out-of-pocket expenses incurred by the other in providing such assistance, records or information. 

  

	(g)	 Notice of Claims. Seller and Buyer agree to provide written notification to the other party promptly
after becoming aware of any liability, obligation or claim, whether pending or threatened, that is the subject of indemnification pursuant to this Section 12; unless the failure to provide such notification would not materially and adversely
affect the indemnifying party in exercising its contest rights hereunder or result in any increase in, or fine or penalty with respect to, any amounts claimed to be payable by the indemnifying party to the other party pursuant to this
Section 12, provided, that the failure by either party to so notify the other party will not in any manner affect either party’s other obligations under this Section 12. 

 

	(h)	 Insurance. For the earlier of a period of two years after the purchase of the Airframe,, Buyer shall, at
its own cost and expense, maintain and keep in full force and effect an insurance policy(ies) for the Airframe providing $10,000,000 of aviation products liability coverage, except in the event that the Airframe is returned to service, in which
event $500,000,000 of aviation general liability coverage shall be provided with respect to the Airframe. Seller and Seller’s nominees shall be named as additional insured parties for such two-year period
on terms reasonably satisfactory to Seller. Aviation General Liability insurance covering Buyer’s or any operator’s aviation activities shall include Premises Liability, Contractual Liability, Products Liability, War Risks Liability, and
including Extended Coverage Endorsement (Aviation Liabilities) AVN52 or equivalent covering War and Allied Perils excluded by War, Hijacking and Other Perils Exclusion Clause AVN48B or any modification or substitution thereof for the time in force.
Such policies shall be carried with insurers reasonably acceptable to Seller. Such insurance shall include the Seller and any other Seller Indemnitees as additional insureds. Such policies shall include a Waiver of Subrogation Clause, Breach of
Warranty Clause, and Severability of Interest Clause in favor of the additional insureds. Buyer shall furnish an insurance certificate evidencing the same at Closing, and at the expiration of an existing certificate. 

12. Know Your Customer 
 Seller and Buyer shall
(i) ensure that no Person who owns a controlling interest in or otherwise controls Buyer or Seller is or shall be listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign
Assets Control (“OFAC”), the Department of the Treasury or included in any Executive Orders, (ii) not violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto,
(iii) comply with all applicable Bank Secrecy Act laws and regulations, as amended or 

  
 Purchase Agreement 

Page 10 

 
(iv) comply with any other applicable national sanctions program. As required by federal law or other applicable law, Seller or Buyer may need to obtain, verify and record certain customer
identification information and documentation in connection herewith, and each party hereto shall provide such information as is reasonably requested prior to Closing. 

13. Miscellaneous 
  

	(a)	 Notices. 

All notices, demands, declarations and other communications required by this Agreement shall be in writing and shall be effective (i) if
given by facsimile, when transmitted, (ii) if given by registered or certified mail, three Business Days after being deposited with the U.S. Postal Service or other commercially recognized carrier and (iii) if given by a nationally
recognized overnight courier, when received, or, if personally delivered, when so delivered, addressed: 
 If to Seller, to: 

CONTRAIL AVIATION SUPPORT, LLC 

435 Investment Court 
 Verona,
Wisconsin 53593 
 Attn: Joseph Kuhn, CEO 

Fax: (608) 848-8100 

Email: Joecontrail.com 
 or to such other
address as Seller shall from time to time designate in writing to Buyer; and 
 If to Buyer, to: 

AIRCO 1, LLC 
 1853 S.
Eisenhower Court 
 Wichita, Kansas 67209 

Attn: Charles Kingsley, COO 

Fax: (316) 945-8014 
 Email:
ckingslcy@airco-ict.com 
 or to such other address as Buyer may from time to time designate in writing to Seller. 

 

	(b)	 Confidentiality. 

 

	 	(i)	 Each party hereto shall keep strictly confidential any and all Confidential Information furnished to it or to
its Affiliates, or their respective officers, employees, agents, directors or advisers (collectively, “Representatives”) in the course of negotiations relating to this Agreement or any transaction contemplated by this Agreement, and
the business and financial reviews and investigation conducted by any party hereto in connection with this Agreement, and each such party has instructed its Representatives having access to such Confidential

  
 Purchase Agreement 

Page 11 

 
Information of such obligation of confidentiality. The obligations of confidentiality set forth herein shall not apply to information to the limited extent (v) it is contained in a Transfer
Document that is publicly filed as contemplated hereby; (w) it is required to be disclosed by any Governmental Entity or required to be disclosed by applicable law or administrative proceeding, (x) for which a party has received a subpoena
or similar demand (provided that such party shall to the extent permitted by applicable law first, as promptly as practicable upon receipt of such subpoena or demand, furnish a copy thereof to the other party), (y) that such information is generally
available to the public or in the possession of the receiving party before its disclosure by the disclosing party to the receiving party or (z) that it is given to the receiving party by another Person other than in breach of obligations of
confidentiality owed by such Person to the disclosing party. Notwithstanding the foregoing, each party acknowledges and agrees that any party may disclose Confidential Information to (A) regulators, (B) such party’s counsel, Affiliates,
beneficiaries, hedging arrangement providers, insurance brokers and providers, reinsurers and auditors provided that such recipients maintain the confidentiality of the Confidential Information and (C) prospective transferees and lenders who
agree to keep such Confidential Information confidential. 
  

	 	(ii)	 Notwithstanding anything herein to the contrary, any party to this Agreement (and any Representative) may
disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure; provided, however, that such disclosure may not be made to the extent required to be kept confidential to comply with any applicable federal or state securities laws. 

 

	(c)	 Limitation of Liability of Any Party. THE PARTIES ACKNOWLEDGE AND AGREE THAT, NOTWITHSTANDING ANY OTHER
PROVISION OF THIS AGREEMENT, NO PARTY SHALL BE LIABLE TO ANOTHER PARTY TO THIS AGREEMENT OR ASSERT A CLAIM FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, OR PUNITIVE DAMAGES, REGARDLESS OF THE NATURE OR THEORY OF ANY UNDERLYING CAUSE OF ACTION THAT
MIGHT OTHERWISE APPLY. 

  

	(d)	 Headings. Headings used herein are for convenience only and shall not in any way affect the construction
of, or be taken into consideration in interpreting, this Agreement. 

  

	(e)	 References. Any reference to a specific Section or Section number shall be interpreted as a reference to
that Section of this Agreement unless otherwise expressly provided. 

  

	(f)	 Governing Law; Jurisdiction; Attorney Fees. This Agreement and any other Transfer Documents shall in all
respects be governed by, and construed in accordance with, the laws of the State of New York, U.S.A., including all matters of construction, validity and performance, without giving effect to principles of conflicts of law. The federal courts
located in the State of New York shall serve as the exclusive forum for any such dispute and the parties irrevocably consent to the jurisdiction of such courts. In the event of a dispute between the parties, the prevailing party shall be entitled to
reasonable attorney fees and costs. 

  
 Purchase Agreement 

Page 12 

	(g)	 Severability. If any provision hereof should be held invalid, illegal or unenforceable in any respect in
any jurisdiction, then, to the fullest extent permitted by law, (i) all other provisions hereof shall remain in full force and effect in such jurisdiction and shall be construed in order to carry out the intentions of the parties hereto as
nearly as may be possible, and (ii) such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction. 

 

	(h)	 Amendments in Writing. No amendment, modification, waiver, termination or discharge of any provision of
this Agreement, or any consent to any departure by Seller or Buyer from any provision hereof, shall in any event be effective unless the same shall be in writing and signed by Seller and Buyer, and each such amendment, modification, waiver,
termination or discharge shall be effective only in the specific instance and for the specific purpose for which given. 

  

	(i)	 Survival. Notwithstanding anything contained herein to the contrary, all agreements, indemnities,
representations and warranties contained in this Agreement shall survive the Closing Date and the consummation of the transactions contemplated hereby for such date. 

 

	(j)	 Expenses. Each of Seller and Buyer shall be responsible for its own costs and expenses incurred in
connection with the negotiation, preparation, execution and delivery of this Agreement and the Transfer Documents, and shall not have any right of reimbursement or indemnity for such costs and expenses as against the Buyer or Seller, respectively.
Notwithstanding anything to the contrary, Buyer shall be responsible for any cost associated with the registration of the transfer of title in the State of Registration including any special aviation counsel fees. 

 

	(k)	 Execution in Counterparts; Signatures. This Agreement, the other Transfer Documents and any amendments,
waivers or consents hereto or thereto may be executed by Seller and Buyer in separate counterparts (or upon separate signature pages bound together into one or more counterparts), each of which, when so executed and delivered, shall be an original,
but all such counterparts shall together constitute one and the same instrument. Facsimile and PDF copy signatures shall be treated as original signatures for all purposes. 

 

	(l)	 Entire Agreement. This Agreement and the other Transfer Documents constitute the entire agreement of
Seller and Buyer with respect to the subject matter hereof or thereof, and all prior or contemporaneous understandings or agreements, whether written or oral, between Seller and Buyer with respect to such subject matter are hereby superseded in
their entirety. In the event of a conflict between this Agreement and any other Transfer Document, the terms and conditions of this Agreement shall govern. 

  

	(m)	 Exhibits and Schedules. The exhibits and schedules attached hereto are incorporated by reference herein
and shall have the same force and effect with respect to the provisions set forth therein as though fully set forth in this Agreement. 

  
 Purchase Agreement 

Page 13 

	(n)	 Successors and Assigns. This Agreement shall be binding upon, shall inure to the benefit of and shall be
enforceable by Seller and Buyer, and their respective successors and assigns. 

  

	(o)	 No Third Party Benefit. Seller and Buyer agree that except as provided in Section 12 with respect
to Seller Indemnitees and Buyer Indemnitees, the provisions of this Agreement, including, without limitation, Section 2, are for the sole benefit of Seller and Buyer and their respective successors and assigns, and are not for the benefit,
directly or indirectly, of any other Person. 

  

	(p)	 Assignment. Neither party shall assign or delegate this Agreement, or any of its rights or obligations
hereunder, without the prior written consent of the other party. 

 IN WITNESS WHEREOF, the undersigned have caused
this PURCHASE AGREEMENT to be duly executed as of the day and year first written above. 
  

			
	CONTRAIL AVIATION SUPPORT, LLC,
	as Seller
		
	By:	 	 /s/ Joseph G. Kuhn

	Name:	 	Joseph G. Kuhn
	Title:	 	CEO

  

					
		 	AirCo 1, LLC, as Buyer
	 	 	 	 	 
			
		 	By:	 	 /s/ Nick Swenson

		 	Name:	 	 Nick Swenson

		 	Title:	 	 Manager

  
 Purchase Agreement 

Page 14 

 SCHEDULE 1 

DEFINITIONS 
  

	(a)	 Unless the context otherwise indicates, any reference in this Agreement to: 

 

	 	(i)	 a “part” means any module, component, instrument, furnishing, control, appliance, accessory,
reverser, nacelle, equipment or other item or equipment of any kind whether similar to any of the foregoing or not; 

  

	 	(ii)	 a “regulation” includes any present or future directive, regulation, request or requirement (in each
case whether or not having the force of law) but, if not having the force of law, the compliance with which is in accordance with the general practice of the persons to whom it is addressed; 

 

	 	(iii)	 any “agreement”, “license” or other document includes any agreement, license or other
instrument as varied, novated, amended or replaced from time to time (but without prejudice to any restrictions on such variation, novation, amendment or replacement); 

 

	 	(iv)	 the expressions “hereof”, “herein” and similar expressions shall be construed as references
to this Agreement as a whole and shall not be limited to the particular clause in which the relevant expressions appear and the expressions “thereof”, “therein” and similar expressions shall be construed in like fashion;

  

	 	(v)	 references to any statute or other legislative provision shall be read to include any statutory or legislative
modification or re-enactment thereof or any substitution therefor; 

  

	 	(vi)	 references to a party shall be read to include its successors and permitted assigns; 

 

	 	(vii)	 a Clause or Schedule shall be construed as a reference to a clause hereof or a schedule hereto;

  

	 	(viii)	 a word importing the singular number shall be construed so as to include the plural and vice versa;

  

	 	(ix)	 the expression “in writing” includes by facsimile or e-mail;
and 

  

	 	(x)	 the index, clause and sub-clause headings in this Agreement (including
their use in cross references) arc for ease of reference only and shall not affect the interpretation of this Agreement. 

  

	(b)	 In this Agreement, the following terms have the following meanings: 

  
 Schedule 1 

Page 1 

 “Acknowledgment of Delivery” means the Acknowledgment of Delivery substantially in the form
attached hereto as Exhibit A. 
 “Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in control of, is
controlled by, or is under common control with, such Person or which owns, directly or indirectly, more than fifty percent of the outstanding equity interests of such Person. A Person shall be deemed to control another Person if the controlling
Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities, by contract, or otherwise. 

“Airframe Documents” means full back-to-birth traceability of
life limited parts which shall include commercial trace as required to show the part change of ownership from new to current and a non-incident / accident / military / government letter, among other manuals
and records, including all inspection, modification and overhaul records required to be maintained under applicable rules and regulations, all records of any third party which has made any modifications to or refurbishments of the Airframe, and any
other technical documents that pertain to the Airframe including, without limitation, the dirty finger prints for all the shop visits from last performance restoration, any of which are in Seller’s possession. 

“Airframe” means that certain Boeing 737-800 airframe more specifically described on Schedule 2,
excluding engines but including all other items of equipment installed in or attached thereto, including side cowls, inlet cowls, and thrust reversers and all Airframe Documents related thereto. 

“Anticipated Closing Date” means the date for anticipated Closing for the Airframe as designated on Schedule 2. 

“Bill of Sale” means the Warranty Bill of Sale for the Airframe. 

“Business Day” means any day, other than a Saturday or Sunday, on which banks in New York City and Taiwan, Republic of China are open for
business. 
 “Certificate of Final Technical Acceptance” means the Certificate of Final Technical Acceptance in the form attached hereto as
Exhibit B. 
 “Closing” means the closing of the sale and purchase of the Airframe pursuant to this Agreement on the Closing Date. 

“Closing Date” means the date of the Closing. 

“Confidential Information” means any and all information, whether written, in electronic form, or oral concerning or relating in any way to
the Airframe, which is provided by a party hereto or such party’s Affiliates or representatives to the other party hereto or such party’s Affiliates or representatives, and includes, without limitation, all agreements, analyses,
compilations, forecasts, studies, capabilities, specifications, program plans, marketing plans, e-commerce strategies, inspection reports, certificates of insurance or other documents which contain or
otherwise reflect such information, or any portion thereof or notes or other documents which contain or reflect such information, whether or not marked or specifically identified as “confidential” or “proprietary.” 

  
 Schedule 1 

Page 2 

 “Delivery Location” an area reasonably designated by Seller over international waters, over
which the aircraft of which the Airframe is a part will fly following departure from Taiwan Taoyuan International Airport in connection with the ferry flight contemplated under this Agreement, or such other location as mutually agreed to by the
parties. 
 “Deposit” has the meaning set forth in Section 3 hereof. 

“Event of Loss” means any of the following events with respect to the Airframe, including, but not limited to: (a) loss of such
property or its use due to theft, hijacking or disappearance for a period in excess of sixty (60) consecutive days, or in any event extending beyond the Anticipated Closing Date, or destruction, damage beyond economic repair or rendition of
such property permanently unfit for normal use for any reason whatsoever, (b) any damage to such property which results in an insurance settlement with respect to such property on the basis of a total loss or on the basis of a compromised or
constructive total loss, (c) the condemnation, confiscation, appropriation or seizure of, or requisition of title to, such property by a governmental entity or purported governmental entity, (d) the condemnation, confiscation,
appropriation or seizure of the use of such property by or on behalf of the authority of any governmental entity or purported governmental entity, that in any such case shall have resulted in the loss of possession thereof for a period in excess of
sixty (60) consecutive days or in any event extending beyond the Anticipated Closing Date or (e) any divestiture of title of such property except as otherwise permitted by the other party. 

“Final Closing Date” means the date which is 30 days after Buyer’s execution of this Agreement. 

“Final Inspection” has the meaning set forth in Section 4 hereof. 

“Final Technical Acceptance” has the meaning set forth in Section 4 hereof. 

“Government Entity” means any (i) nation, state, county, city, town, village, district, or other jurisdiction of any nature;
(ii) federal, state, local, municipal, foreign, or other government; (iii) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal);
(iv) multinational organization or body; or (v) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, regulatory, or taxing authority or power of any nature. 

“International Registry” means the International Registry of Mobile Assets established pursuant to the Convention on International Interests
in Mobile Equipment and its Protocol on Matters Specific to Airframe Equipment, concluded in Cape Town on November 16, 2001. 
 “Lien”
means any pledge, lien, charge, encumbrance, exercise of rights, security interest or claim of any kind or nature. 
 “OFAC” has the
meaning set forth in Section 12 hereof. 

  
 Schedule 1 

Page 3 
  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

 “Person” means an individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture, Government Entity or other entity of whatever nature. 
 “Purchase
Price” has the meaning set forth in Section 3 hereof. 
 “Buyer Agreements” has the meaning ascribed in
Section 7(a) hereof. 
 “Buyer Indemnitee” means Buyer and any Buyer’s Affiliates, members, managers,
officers, directors, employees, successors and assigns. 
 “Seller Agreements” has the meaning ascribed to such term in
Section 5(a) hereof. 
 “Seller Indemnitees” means each of the Seller, GA Telesis, LLC, China Airlines Ltd, and
their respective Affiliates, and the members, managers, officers, directors, employees, successors and assigns of any of such entities. 
 “State of
Registration” means Taiwan (previous registration) and USA (after sale) 
 “Taxes” means and includes all present and future
income, gains, sales, stamp, documentary, use, value-added, goods and services and other taxes, duties, imposts, levies, deductions, charges and withholdings imposed by any Government Entity and also includes all fines, penalties and interest
thereon, and the terms “Tax” and “Taxation” shall be construed accordingly. 
 “Transfer Documents” means this
Agreement, the Bill of Sale, the Acknowledgments of Delivery, the Certificates of Technical Acceptance and any other agreements, documents, certificates and instruments executed and delivered in connection herewith. 

“Warranty Bill of Sale” means the warranty bill of sale for the Airframe, in the form of Exhibit C hereto for the Airframe. 

  
 Schedule 1 

Page 4 

 SCHEDULE 2 

AIRFRAME DESCRIPTION; PURCHASE PRICE 
  

											
	 MSN
	 	 Chinese Registration
Mark
	 	 Purchase Price
	 	 Deposit
	 	 Anticipated Closing

Date
	 	 Final Closing Date

	 28407
	 	 B-18609
	 	
*          
  
	 	
*          
  
	 	October 21, 2017	 	 30 days following

execution of this

Agreement

		 		 		 		 		 	

  
 Schedule 2 

Page 1 
  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

 EXHIBIT A 

ACKNOWLEDGMENT OF DELIVERY 

            , 2017             

By this Acknowledgment of Delivery, Contrail Aviation Support, LLC (the “Seller”), and AirCo 1, LLC (the “Buyer”),
acknowledge that pursuant to that certain Sale Agreement dated as of                     , 2017, among Seller and Buyer, (the
“Agreement”), Seller does hereby deliver to Buyer and Buyer does hereby accept the following in all respects under the Agreement: 

One Boeing model 737-800 airframe bearing manufacturer’s serial number 28407 including all parts,
components, appliances, accessories, instruments, furnishings, alterations and other items of equipment installed in or attached thereto, and all Airframe Documents related thereto (collectively the “Airframe”). 

Buyer has accepted delivery of the Airframe at              hours G.M.T. at Taoyuan International
Airport, Taiwan. Accordingly, as of the date hereof, Seller has delivered the Airframe to Buyer and that the Closing Date as defined and set forth in the Agreement has occurred. Buyer hereby declares that the Airframe is acceptable and does conform
to the Agreement in all respects. 
 This Acknowledgment of Delivery may be signed in one or more counterparts with the same effect as if the signatures to
each counterpart were upon a single instrument. All counterparts shall, taken together, be considered an original of this Acknowledgment of Delivery. All capitalized terms used herein not otherwise defined shall have the same meaning as that given
in the Agreement. 
 [Signature page follows.] 

  
 Exhibit A 

 IN WITNESS WHEREOF, the undersigned have duly executed this Acknowledgment of Delivery as of
the date first written above. 
  

			
	Contrail Aviation Support, LLC (Seller)
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

			
	AirCo 1, LLC (Buyer)
	 	 	 
		
	By:	 	 /s/ Nick Swenson

	Name:	 	Nick Swenson
	Title:	 	Manager

  
 Exhibit A 

 EXHIBIT B 

CERTIFICATE OF FINAL TECHNICAL ACCEPTANCE 

relating to that Boeing 737-800 Airframe, 

manufacturer’s serial number 28407 (the “Airframe”) 

            , 2017 

This Certificate of Technical Acceptance (this “Certificate”) is delivered on the date set out below by AirCo 1, LLC
(“Buyer”), to Contrail Aviation Support, LLC (“Seller”), pursuant to that certain Sale Agreement dated             , 2017 between Buyer and
Seller (the “Agreement”). The capitalized terms used in this Certificate shall have the meaning given to such terms in the Agreement. 
  

	(a)	 Buyer has inspected the Airframe in accordance with the provisions of Section 4 of the Agreement at the
China Airlines Ltd Facility in Taipei, Taiwan and the Airframe and found the Airframe to be satisfactory; and 

  

	(b)	 Buyer has received and inspected all of the Airframe Documents and found them to be complete and satisfactory.

 IN WITNESS WHEREOF, Buyer has, by its duly authorized representative, executed this Certificate on the date
first written above, accepted the Airframe and confirmed its compliance with the Agreement in all respects. 
  

			
	AirCo 1, LLC (Buyer)
	 	 	 
		
	By:	 	 /s/ Nick Swensen

	Name:	 	Nick Swensen
	Title:	 	Manager

  
 Exhibit B 

 EXHIBIT C 

WARRANTY BILL OF SALE 

relating to that Boeing 737-800 Airframe, 

manufacturer’s serial number 28407 

            , 2017 

KNOW ALL MEN BY THESE PRESENTS: 
 THAT for and
in consideration of good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Contrail Aviation Support, LLC (“Seller”) does, on the date hereof, grant, convey, transfer, bargain, sell, deliver and
set over to AirCo 1, LLC (“Buyer”), all of Seller’s right, title and interest in and to the one Boeing 737-800 airframe bearing manufacturer’s serial number 28407
including all parts, components, appliances, accessories, instruments, furnishings, alterations and other items of equipment installed in or attached thereto, and all Airframe Documents related thereto (collectively the
“Airframe”). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in that certain Sale Agreement dated as of
            , 2017, among Seller and Buyer (the “Agreement”). 

TO HAVE AND TO HOLD said Airframe unto Buyer, its successors and assigns, for its and their own use forever. 

THAT Seller hereby warrants to Buyer, its successors and assigns, that it is the holder of title to the Airframe and has the right to sell the
same as aforesaid and that this Warranty Bill of Sale conveys to Buyer on the date hereof, good title to the Airframe, free and clear of all Liens, encumbrances and rights of others, and that Seller will warrant and defend such title forever against
all claims and demands whatsoever. 
 This Bill of Sale shall be governed by the laws of New York, U.S.A, without giving effect to its conflicts-of-laws principles. 
 IN WITNESS WHEREOF, Seller has
caused this Warranty Bill of Sale to be executed by its duly authorized officers as of the date first written above. 
  

			
	Contrail Aviation Support, LLC (Seller)
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Exhibit CEX-10.6

 Exhibit 10.6 

Lease Agreement 
 This Lease
Agreement is made as of December 27, 2017 between Contrail Aviation Support, LLC, domiciled at 435 Investment Court Verona (“Lessor”) and MTU Maintenance Lease & Services B.V., domiciled at
Strawinskylaan 1639, 1077XX Amsterdam, The Netherlands (“Lessee”). It refers to and incorporates the terms of Document No 5016-01 (Master Short-Term Engine Lease Agreement, 2012)
(“Master Agreement”). 
 This Lease Agreement modifies the Master Agreement, and, as so modified,
constitutes a single contract applicable to the leasing of the Engine (defined below), as contemplated by 2.1.2 of the Master Agreement. 
 Part I
– Referenced Provisions 
 For purposes of the Master Agreement (“N/A” denotes
non-applicability): 
  

			
	 1. Engine (clause 2.3.1(i); annex 1, definition)
  

CFM56-7 spare engine bearing Engine Serial Number 874771

 
 Serviceability Tag:

Latest EASA Form 1 and FAA Form 8130-3 release certificate or alternatively one EASA Form 1 with FAA dual release or
FAA form 8130-3 with EASA dual release.
  
	  	 2A+B. Engine Flight Hours (2A) and Engine Flight Cycles (2B) /Since Last Overhaul (clause
2.3.1(ii); Annex 1, Definitions)
  
 Engine Flight Hours since new:

as per technical documentation
 Engine Flight Cycles since
new:
 as per technical documentation

	 3A+B. Additional Conditions Precedent to Lessee’s Obligations (clause 2.3.1(iii))
(3A) and to Lessor’s Obligations (clause 2.3.3) (3B)
  

3A Lessee’s Obligations
 Engine to be in the agreed
condition
  
 3B Lessor’s Obligations

Lessor’s confirmation of receipt of the Lessee’s first payment of Rent on or prior to the Commencement Date.

 
	  	 4. Conditions Precedent Time Period (clause 2.3.2)
  

From the date of this Lease Agreement to the Commencement Date.

	 5. Commencement Date (clause 2.4.1; annex 1, definition)

 
 Upon Delivery of the Engine to Lessee EXW (Ex Works) Incoterms 2010 at Aircraft
Inspection & Management, LLC, FAA & EASA CRS, 2481 W Poppy Ave., Tucson, AZ 85705. T: (520) 399-6489 (“Delivery Location”).

 
 This is estimated to be on or about 22 December 2017 as shall be evidenced by the date
of the Acceptance Certificate.
	  	 6. Acceptance Certificate (clause 2.4.2; annex 1, definition)

 
 An Acceptance Certificate is required (form attached as Appendix A).

  

	
	1

			
	 7. Deposit and/or Letter of Credit (clause 3.1)

*       
	  	 8. Rent (clause 3.2; annex 1, definition)
  

US$*                  per day,
paid in advance for the following month.
  

*                    
                                         
                                         
 
  

*                    
                                         
                                         
 
  

*                    
                                         
                                         
 
  

*                    
                                         
                                         
 
  

*                    
                                         
                                         
 
  
  
 *                                  

 

	 9. Rent Payment Date (clause 3.2; annex 1, definition)

 
 On the Commencement Date and on the equivalent date of each subsequent calendar month
during the Term upon receipt of a corresponding invoice.
  
 Invoices shall be sent by
Lessor per email to
 (1) the respective lease manager and to

(2) invoice@ mtu-lease-services.com
  
	  	 10. Default Rate (clause 3.5; annex 1, definition)

*                    
                                         
                   

	 11. Agreed Currency (clause 3.7.2; annex 1, definition)

 
 United States Dollars ($).
	  	 12. Payment Account (clause 3.7.2; annex 1, definition)

 
 Bank: Old National Bank

            1 Main Street

            Evansville, IN 47708

ABA#:
                        

Account #:
                        

SWIFT Code:
                        

 
 Beneficiary:  Contrail Aviation Support, LLC

                      435 Investment Court

                      Verona, WI 53593

 

	 13. Engine Documentation (clause 4.2.1(i))
  

•  Latest EASA Form 1 and FAA Form 8130-3 release certificate
or alternatively one EASA Form 1 with FAA dual release or FAA form 8130-3 with EASA dual release

•  serviceable removal tag (as applicable)

•  LLP status

•  latest FAA & EASA AD status

•  latest SB status

•  last operator NIS

•  result of last Maximum Power Assurance run (MPA)

•  last test cell run report

•  latest BSI report

•  BSI DVD

•  last 3 months Cruise & Take-off ECM data

•  latest zero letter (MPD) check – MPD task compliance status

•  accessory and QEC status
	  	 14. Engine Reports—Other Information (clause 4.2.4(ii))

 
 By the 10th day of each month, Lessee shall provide a monthly utilization report to
Lessor, substantially in the form of Appendix B, for the preceding month that includes:
  

a. the total number of flight hours and flight cycles the Engine was operated the preceding month; and

 
 b. engine configuration during preceding month; and

 
 c. maintenance performed during preceding month; and

 
 d. the average cruise and take-off EGT margins
for the preceding month; and

  
 2 

 

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

			
	 •  missing parts list

•  shipping stand details

•  ship loose & bypack parts (as applicable)

•  preservation data (tag, work cards)

•  engine removal/installation history

•  carry-forward sheet

•  oil consumption report

•  used oil type

•  last SV report (as applicable)

•  engine pictures
  
	  	e. if Lessor does not receive the flight hours and cycles by the 10th day of each month, Lessor may invoice Lessee for an estimated number of flight hours and flight cycles for
the preceding month and reconcile the differences within thirty (30) days after receipt of the applicable monthly utilization report.
	 15. Engine Installation/Removal Notification Requirements (clause 4.2.6)

 
 Within 10 days of each installation or removal of the Engine, Lessee shall report the
following in writing:
 a. operated thrust rating; and
 b.
aircraft serial number and engine position and shall also provide Lessor with off-on LLP disk sheets, all printed on the operator’s letterhead and signed by operator’s quality control department.

 
	  	 16. Certain Lessee Obligations Concerning Indemnitees (clause 4.4.6)

 
 If Lessee is not the owner of the aircraft on which the Engine shall be attached to,
Lessee shall, at its expense, at the request of Lessor, provide a document signed by the owner of and/or any secured party with respect to the aircraft recognizing the rights of the Engine owner, in form and substance acceptable to
Lessor.

	 17. Consequences of Partial Loss (clause 7.2.1(ii))

 
 The Engine will continue to be leased as set out in clause 7.2.1(ii)(a).

 
	  	 18. Stipulated Amount (clause 7.3.1; annex 1, definition)

 
 USD *
                  

	 19. Reinsurance (clause 8.1)
  

In the event where the Permitted Sub-Lessee is not insured by an insurance company recognized by the London/New York
markets, Permitted Sub-Lessee shall provide reinsurances, issued by a re-insurance company recognized by the London/New York markets.

 
	  	 20. Redelivery Location (clause 11.1(i); annex 1, definition)

 
 DDP (Delivered Duty Paid) Incoterms 2010 (provided Lessee shall be responsible for
unloading the Engine) at Aircraft Inspection & Management, LLC, FAA & EASA CRS, 2481 W Poppy Ave., Tucson, AZ 85705. T: (520) 399-6489 or any other mutually agreed location.

	 21. Redelivery—additional requirement (clause 11.1(ii))

 

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
               
  

*                    
                                         
                                         
           
  
 *                                    
                                         
                                 

 

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*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                     
	  	 22. Final Inspection – other tests (clause 11.3.1(ii))

 
 All inspections, tasks and reports specified in Appendix C.

  

			
	3

  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

			
	 23. Redelivery – Additional Documentation (clause 11.4(viii))

 

*                    
                               

 

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                                         
                                         
                  
  

*                    
                     
	  	 24. Transportation – supplemental requirements (clause 11.5)

 
 Manufacturer’s published engine transportation manual,
specifications/recommendations, including proper equipment tie-down and use of air-ride or air cushion suspension vehicles. On any given shipment, such truck will be
dedicated solely to the Engine belonging to Lessor; except that additional items may be transported on such truck, provided that (a) the Engine can and will be off-loaded by Lessor at the Redelivery
Location without disturbing any of the additional items and (b) Lessee or its shipper will not handle or reposition any of the additional items on such truck either while the Engine is in transit or when it arrives at the Redelivery Location.
Lessor will invoice and Lessee agrees to pay for the cost of inspections and repairs to the Engine and/or transportation stand resulting from the improper movement or transportation of the Engine and/or transportation stand.

  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

			
	 25. Additional Amounts – Term Extension (clause 11.6.2)

 
 If (1) Lessee retains the Engine beyond the Scheduled Final Date set forth in
Section 35; (2) the Engine has not been returned to Lessor in the conditions required by Sections 21, 22, and 23; and (3) does not execute a written lease extension with Lessor, Lessor may at its sole discretion, (a) remedy such
defects and deficiencies and recover any costs so incurred from Lessee; and/or (b). continue the Lease and Lessee will pay Lessor *          times Rent for each
day after the Scheduled Final Date until Lessee either returns the Engine to the Redelivery Location and satisfies all return conditions or executes a written lease extension. All obligations of Lessee under the Lease Agreement shall remain in full
force and effect until the return of the Engine in the condition required by the Lease Agreement. This will not be considered a renewal of the Lease Agreement or extension of the Lease Term or waiver of any right of Lessor under the Lease
Agreement.
  
	  	 26. Differing Period (clause 14.1(i))
  

N/A.

	 27. Notices (clause 17.5)
  

Notices shall be sent by post or fax to the respective parties at the address or fax numbers set out below or as otherwise advised by one party to the other in
compliance with clause 16.5:
  
 Lessor

 
 Address:  Contrail Aviation Support,
LLC
       435 Investment Court Verona

      WI 53593

      USA
  

Attn:    President

Fax:   +1 608 848 8101
  

Lessee
  

Address: Strawinskylaan 1639
  

             1077XX Amsterdam

 
               The
Netherlands
  

Attn:    Managing Director

 
 Fax:   +31(0) 20 705 49
08
	  	 28. Contracting by Fax/Electronic Writing (clause 17.6)

 
 Notices by fax are acceptable as per box 27 or electronic media is
permitted.

  

			
	5

  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

			
	 29. Governing Law (clause 17.7)
  

Laws of the State of New York. 
	  	 30. Non-exclusive Jurisdiction (clause 17.8.1(i))

 
 Courts of the State of New York and the United States District Court located in the
Borough of Manhattan, New York City, New York, United States of America.

		
	 31. Additional Indemnitees (annex 1, definition) (for use, inter alia, in definition of “Indemnitees”)

 
 Lessor; any person from time to time notified by Lessor to Lessee as providing
financing to Lessor or the owner of the Engine for the acquisition, ownership or leasing thereof; together with each of their respective successors and assigns, shareholders, subsidiaries, affiliates, partners, contractors, directors, officers,
servants, agents and employees.
	  	 32. Business Day (annex 1, definition)
  

Evansville, Indiana, United States of America Amsterdam,
 The
Netherlands

		
	 33. Use Fee Amount (Cycle) (annex 1, definition) (for use in definition of “Use Fees (Cycle)”

 

US$*                 

This Use Fee Amount (Cycle) shall be adjusted annually, effective January 1 of each year, based on the OEM published annual escalation rate or escalation
percentage for a set of CFM56-7B life limited parts.
	  	 34. Use Fee Amount (Flight Hour) (annex 1 definition) (for use in definition of “Use Fees (Flight Hours)”)

 
 as per Appendix D

 
 Lessee shall not lease the Engine to any operator with its principal place of business
in any of the ‘Harsh Environment Countries’ listed in Appendix E.

		
	 35. Scheduled Final Date (annex 1, definition (for use in definition of “Final Date”)

 
 After 12 months or, if earlier, after the Engine becomes unserviceable due to normal
wear and tear or LLP expiry, the date by which Lessee shall have completed all redelivery conditions, including but not limited to the items specified in Sections 20-23, and returned Engine to the Redelivery
Location.
  
 Lessee may extend the Term by a period of 6 months by giving written
notice to Lessor at least 2 months prior to the Scheduled Expiry Date.
	  	 36. Principal Taxation Jurisdictions (annex 1, definition) (for use in definition of “Lessor Tax”)

 
 USA

		
	 37. Calculation Discount Rate (annex 1, definition (for use in definition of Termination Damage Amount))

 

*                    
                                         
                         

*
                                   
                
	  	 38. Threshold Amount (annex 1, definition)
  

An Engine repair in the amount of
US$*                 , either estimated or actual, above which Lessee requires Lessor’s permission before
proceeding with the repair.

  
  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

			
	 39. Required Liability Amount (annex 4, clause 4)
  

*            
                      
	  	 40. Deductibles (annex 4, clause 8)

 
 Hull All Insurance—US$*                 

Spares
Insurance—US$*              

 Part II – Modifications Applicable Where Lessee Is Not an Airline or Other Operator of Engines 

 

	
	Pursuant to 2.1.4 of the Master Agreement, the Master Agreement is modified as follows (“N/A” denotes non-applicability):
	
	The following wording shall be added to Annex 1 – Definitions and Rules of Interpretation:
	
	“Permitted Sub-Lessee” shall mean a licensed airline operator of good standing acceptable to Lessor, acting reasonably;”
	
	Lessee will not operate the Engine, but will be entitled to sub-lease the Engine to sub-lessees;
	
	PROVIDED THAT:
	 (a)   no Event of Default has occurred and is continuing

	 (b)   any such sub-lease
agreement:

	 (i) shall be subject and subordinate in all respects to this Agreement

	 (ii)  shall not be capable of extending beyond the end of the Lease
Period;

	
	 (c)   the relevant Permitted
Sub-Lessee covenants directly to the Lessor not to do anything which would prejudice the Lessor’s interests, rights and benefits in the Engine and/or the Insurances and/or under this Agreement or any
other lessee document and/or the interests, rights and benefits of the relevant parties in the Engine and/or the Insurances and/or this Agreement under the relevant documents, and agrees directly with the Lessor that such Permitted Sub-Lessee’s rights under such sub-lease shall be subject and subordinate in all respects to the rights of the Lessor under this Agreement; and

	
	 (d)   the terms of the relevant
sub-lease, shall provide that the leasing, chartering or hiring of the Engine to such Permitted Sub-Lessee and that the right of the Permitted Sub-Lessee to the use,
possession and enjoyment of the Engine shall terminate simultaneously with the giving by the Lessor of any notice pursuant to this Agreement; and

	
	 (e)   notwithstanding the foregoing provisions of this clause, no relevant sub-lease permitted under this clause shall involve any transfer of title to or interest in the Engine or any part thereof, nor shall it in any way discharge or diminish any of the Lessee’s obligations to the
Lessor under this Agreement or under any other document.

 Part III – Other Modification to Master Agreement 

As regards this Lease Agreement, the Master Agreement is further modified as follows (“N/A” denotes
non-applicability): 
  

	1.	 For purposes of this Agreement, all references to the JAA also include the European Aviation Safety Agency as
successor to the JAA (“EASA”). If Part I, point 1 of this Lease Agreement indicates the Engine will be supplied to Lessee with both FAA and JAA serviceability tags, then 

  

			
	 7
  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

	 	(a)	 Section 4.7.1 of the Master Agreement is modified by, in subparagraph (ii), deleting the words “FAA
or JAA” and replacing them with the words “FAA and JAA;” 

  

	 	(b)	 Section 11.2.1 of the Master Agreement is restated as follows: “The redelivered Engine shall have
valid serviceability tags issued by the FAA and JAA, respectively. 

  

	2.	 The following new definitions are inserted in the correct alphabetical position in annex 1:

 “EASA means the European Aviation Safety Agency or any other authority to which its responsibilities have been
transferred or reallocated and includes, where the context so requires, a reference to the European Joint Airworthiness Authority.” 

“LIBOR means the British Bankers Interest Settlement Rate for the Agreed Currency and period displayed on the relevant Reuters screen or,
if that page is unavailable, another page displaying the appropriate rate or if no page is available the arithmetic mean (rounded upward to 4 decimal places) of the rates quoted by the British Banking Association to leading banks in the London
interbank market as of 11.00 am on the relevant date for such period as Lessor determines.” 
 “Operator Exceedance” means any
repairs required to the Engine that are attributable to FOD, misuse, mishandling, neglect, negligence or improper operation outside of the specification or procedures laid down in the Manufacturer’s maintenance manual, the AFM and any other
operating manuals after Delivery and during the term of the Lease Agreement. 
  

	3.	 A new clause 2.4.3 is added as follows: 

“Delivery by Lessee to Lessor of the Acceptance Certificate will be conclusive proof as between Lessor and Lessee that Lessee has examined
and investigated the Engine Package, that the Engine Package is satisfactory to Lessee and that Lessee has irrevocably and unconditionally accepted the Engine Package for lease without any reservations whatsoever (except for any discrepancies which
may be noted in the Acceptance Certificate). Notwithstanding the foregoing, Lessee may conduct a visual (including borescope) inspection of the Engine to determine whether the Engine is serviceable and in the condition described in the Lease
Agreement. Such inspection must take place within four (4) days of receipt of the Engine and may take place either at the Delivery Location or any other location the Engine is being shipped to. If, following such inspection of the Engine,
Lessee acting in good faith reasonably determines that the Engine is unserviceable and provides to Lessor a written report as to why Lessee has determined that the Engine is unserviceable and provided that (1) such unserviceability has not
resulted from or occurred during the transportation of the Engine to the inspection location, if the inspection has taken place at any other location than the Delivery Location; and (2) Lessor has been given an opportunity to remedy the defect
or fault which has rendered the Engine unserviceable having due regard to Lessee’s requirements for the Engine, Lessee will, in the event that the inspection took place at any other location than the Delivery Location, hold the Engine pending
shipping instructions from Lessor, at which time Lessee will ship the Engine to Lessor’s designated location at Lessor’s sole expense. Upon receipt of the Engine by Lessor (in the same condition and with the same Parts as on the Delivery
Date in respect of such Engine) the Lease Agreement will terminate, all funds previously received by Lessor from Lessee pursuant to this Lease Agreement will be returned to Lessee. 

Notwithstanding anything to the contrary contemplated herein, in the event that the Engine is rejected by Lessee’s Permitted Sub-Lessee within thirty (30) days after Delivery due to any one or more of the open items set out in Open Item List in Appendix H attached hereto being not acceptable under such Permitted Sublessee’s
maintenance program; then Lessee shall have the option to terminate the Lease Agreement effective as of the date the Engine is redelivered to Lessor in accordance with the provisions of the Lease at Lessor’s designated location at Lessee’s
sole expense. For the avoidance of doubt, none of the items listed in Appendix H will be considered a defect or fault which has rendered the engine unserviceable and Lessee will continue to pay Rent to Lessor until the Engine has been so
redelivered.” 

	4.	 Section 4.6.1 of the Master Agreement is modified by adding the following to the end of the first
sentence: 

 “so as to keep the Engine Package in a serviceable state of repair and in a fully
operational and airworthy condition, and otherwise in as good operating and physical condition as at the time of delivery to Lessee, normal wear and tear due to the accumulation of flight hours and flight cycles from ordinary operation excepted, and
except that Lessee will not be responsible for replacing life limited parts which are due for replacement solely as the result of life expiration but Lessee shall be responsible for replacing or repair of any LRUs that become unserviceable.”

  

	5.	 Section 4.6.2 of the Master Agreement is modified by: 

 

	 	(a)	 replacing subparagraph (iii) thereof with the following: 

“(iii) the operation of the Engine beyond the limits outlined in the Applicable Engine Standards,” 

and 
  

	 	(b)	 adding the following new subparagraph (v) at the end thereof: 

“or (v) any cause whatsoever, so that the Engine Package is kept in a serviceable state of repair and in a fully
operational and airworthy condition, and otherwise in as good operating and physical condition as at the time of delivery to Lessee, reasonable wear and tear from ordinary use excepted; provided, however, that notwithstanding the foregoing, each
Engine Package must be redelivered to Lessor in serviceable condition at the end of its Term and in accordance with Section 11 of the Master Agreement, except that Lessee will not be responsible for replacing life limited parts which are due
for replacement solely as the result of life expiration but Lessee will be responsible for replacing or repair of any LRUs that become unserviceable.”. 
  

	6.	 Section 8.1 of the Master Agreement is modified by adding the following to the end thereof:

 “The parties agree that the insurances described in Annex 4 are as in effect on the date of each Lease Agreement
without amendment.” 
  

	7.	 Section 11.4 of the Master Agreement is modified by deleting subparagraph (vii) and replacing it with
the following: 

 “a certificate stating that, during the Term, the Engine was not (a) involved in an accident,
incident, fire or a major failure, (b) exposed to stress or heat beyond limits, (c) immersed in salt water or exposed to corrosive agents outside normal operation or (d) operated by a Government Entity; and” 

 

	8.	 Section 17.16 of the Master Agreement is modified by deleting subparagraph (i)(a) and replacing it with
the following: 

 “to an affiliate of Lessor or” 

 

	9.	 Section 17.7 of the Master Agreement shall be deleted entirely and the following shall be added in lieu
thereof: 

  

			
	9

 “17.7.1 This Agreement will be governed by and construed in accordance with the Laws of
the State of New York, as specified in Part I, point 29 of the Lease Agreement, without application of conflict of laws rules which refer to other Laws. 

17.7.2. Lessor may enforce any term of any Section of this Agreement that grants any rights to Lessor. 

17.7.3. Lessee may enforce any term of any Section of this Agreement that grants any rights to Lessee. 

17.7.4. Any Indemnitee may enforce the terms of Section 10.4 and Sections 10.1 to 10.3 inclusive in accordance with the provisions of this
Agreement and the Rights of Third Parties Act. 
 17.7.5. The parties to this Agreement shall not require the consent of any third party to
amend, vary or revoke any clause of this Agreement, including this Section 17.7.” 
  

	10.	 Annex 1 of the Master Agreement is modified by: 

 

	 	(a)	 deleting the definition of “Applicable Engine Standards” and replacing it with the following:

 “Applicable Engine Standards means the original Engine manufacturer’s operating procedures and
the original aircraft manufacturer’s operating procedures.” 
  

	 	(b)	 adding the following to the end of the definition of “Aviation Authority”: 

“and the FAA, and if Part I, point 1 of this Lease Agreement indicates the Engine will be supplied to Lessee with (i) an FAA or JAA
serviceability tag, then at least the FAA or JAA, as applicable and dual serviceability tags if possible and (ii) both FAA and JAA dual serviceability tags, then the FAA and JAA dual serviceability tags.” 

 

	 	(c)	 adding the following to the end of the definition of “Law”: 

“and including the Export Administration Regulations and/or International
Traffic-In-Arms Regulations of the United States of America.” 
  

	11.	 Annex 4 of the Master Agreement is modified by adding the following to the end of point 9;

 “The Product Liability Insurance shall name each Indemnitee as additional assured, warranted, as to it, no
operational interest.” 
  

	12.	 Clause 6 of Annex 4 is modified by inserting before the final sentence the following: 

“If the Engine is installed on an aircraft, the agreed value of such aircraft shall automatically be increased by the agreed value of the
Engine for the period it is installed.” 
 As used in this Lease Agreement, the term “this Agreement” refers to the Master
Agreement as modified by this Lease Agreement. 

 IN WITNESS whereof, the Parties have executed this Lease Agreement on the respectives dates specified below.

  

			
	Contrail Aviation Support, LLC
		
	BY:	 	/s/ Joseph G. Kuhn
	NAME:	 	Joseph G. Kuhn
	TITLE:	 	CEO
	DATE:	 	12/28/17

  

			
	 MTU Maintenance Lease Services B.V.

		
	BY:	 	 /s/ Xavier Schmid

	NAME:	 	 Xavier Schmid

	TITLE:	 	 CFO-Director Finance

	DATE:	 	 28/12/2017

  

 Part IV – Appendices 

Appendix A: Acceptance Certificate 
 Appendix B:
Monthly Engine Utilization And Status Report 
 Appendix C: Redelivery Requirements 

Appendix D: Use Fee Amount (Flight Hours) 
 Appendix
E: Harsh Environment Countries 
 Appendix F: Non-Incident Statement 

Appendix G hereto is the form of Certification and Representation Regarding Items Subject to Export Contrail Requirements. Lessee agrees that by its
signature of this Lease Agreement below, that Lessee certifies that to the best of its knowledge, the information set forth on the attached Appendix G is accurate, current and complete as of the date of this signing and that the signatory to this
Agreement is duly authorized by Lessee to provide this certification and representation. 

  

			
	12

 Appendix A – Acceptance Certificate 

Contrail Aviation Support, LLC 
 435 Investment Court Verona 

Wl 53593 
 USA 

 

	Re:	 Acceptance of Engine Package 

Dear Sir/Madam, 
 Reference is made to the Lease Agreement
between you (“Lessor”) and us (“Lessee”) dated 27.12.2017 (“Engine Lease Agreement”) regarding the leasing by Lessee of a CFM56-7 bearing
manufacturer’s serial number 874771 (“Engine”). Terms used herein without definition have the meanings assigned in the Engine Lease Agreement. 

Lessee hereby confirms to Lessor that: 
  

	(i)	 on 11.01.2018 at 1200 GMT at Aircraft Inspection & Management, LLC FAA & EASA CRS, 2481 W Poppy Ave,
Tucson AZ 85705, Lessee accepted delivery of the Engine, as described in Part I, point 1 of the Engine Lease Agreement and the Engine Documentation, as described in Part I, point 13 of the Engine Lease Agreement; 

 

	(ii)	 annex 1 hereto lists all Parts and annex 2 lists all Engine Documentation so received by
Lessee; and 

  

	(iii)	 the Engine Documentation confirms the Engine Flight Hours and Engine Flight Cycle information and data
summarized on annex 3 hereto. 

  

			
	MTU Maintenance Lease Services B.V.
	By:	 	 /s/ Martin Friis-Peterson

		 	 Martin Friis-Peterson 

		 	Managing Director

  

  

 Appendix B – Monthly Engine Utilization And Status Report 

MONTHLY LEASE ENGINE UTILIZATION AND STATUS REPORT 

UTILIZATION DATA IS DUE NO LATER THAN THE 10TH DAY OF EACH MONTH 
  

							
	To: Contrail Aviation Support, LLC	  	From:
	Attention:	  	Name:
	E-Mail:	 		  	E-Mail	  	

 MONTH and YEAR OF REPORTED UTILIZATION:
                                     

 

									
	1)	  	Engine Type:
                                    	  	2)	  	Engine Serial No.:
                                    
				
	3)	  	Total Time Since New:
                                	  		  	Total Cycles Since New:
                                    
				
	4)	  	Hours Flown During the Preceding Month:	  	5)	  	Cycles Flown During the Preceding Month:
		  	 (Rounded to nearest whole hour)

Hours:
                                
	  	Total Cycles:
                                    
				
	6)	  	Aircraft:	  	7)	  	Thrust Categories Operated Throughout Lease:
		  	A/C Model:
                                        
	  		  	
		  	Registration:
                                        
	  		  	Rating:                                     
    Cycles:
		  	Position:
                                        
	  		  	Rating:                                     
    Cycles:
		  		  		  	Rating:                          Cycles:
				
	8)	  	Date Installed:
                                     or	  	9)	  	Reason for Removal:
		  	Date Removed:
                                        
	  		  	
				
	10)	  	The average Take-off EGT margin for the month:	  	11)	  	The number of hours or percentage of flight hours the Engine was operated in or over the continental United States.
		  	EGT Margin:                         	  		  	Hours:                                 

 Appendix C - Redelivery Requirements 

1.    Date of Redelivery. Lessee will return the Engine installed on the same engine transportation stand (or as otherwise agreed) as
delivered to Lessee at Delivery, to Lessor on the Final Date or on the date of other valid termination of the Lease Agreement in the condition required by the Lease Agreement. The costs for shipping of the Engine to any other location than the
designated Redelivery Location will be borne by the Lessor. 
 2.    Redelivery Inspection. Lessee will perform or cause to be performed
at its own cost on the Engine immediately prior to its return to Lessor: 
 a.    a power assurance test run (test 05) at
the thrust rating that the Engine will make power (“MPA”) according to the applicable aircraft maintenance manual requirements, followed by 

b.    a full end of lease (“EOL”) inspection as required by the end of lease inspection requirements detailed in
Schedule 1 to Appendix C, including an acceptable full video borescope inspection, with written report, of all accessible sections of the Engine within maintenance manual limitations, for continued time/reduced inspections (except in the case of
FOD, misuse, neglect, negligence or improper operation). Such borescope inspection shall be performed by Lessor’s representative with consideration or exception given for (i) the findings with respect to the borescope inspection of the
Engine provided by Lessor at Delivery and (ii) normal wear and tear during the Lease Term due to the accumulation of flight hours and flight cycles from ordinary operation, and except that Lessee will not be responsible for replacing life
limited parts which are due for replacement solely as the result of life expiration but Lessee will be responsible for replacing or repair of LRUs that become unserviceable. 

The corresponding MPA and EOL inspection protocols shall be redelivered with the Engine. Lessee will provide Lessor with at least fourteen (14) Business
Days advance written notice of such scheduled Engine inspection and test, so that Lessor may have the opportunity to witness same. Should Lessee not inform Lessor in advance of the impending MPA and EOL inspection with at least fourteen
(14) days’ notice, and the Lessee elects to perform the scheduled MPA and EOL inspections without Lessor present, Lessor may at its sole discretion disregard the MPA and EOL inspection performed by Lessee and perform a test cell run and
corresponding EOL inspection at Lessor’s MRO facility at the cost and risk of Lessee. . In the event that the borescope inspection or the MPA or test cell run identifies any defect in the Engine or any item not being within the
manufacturer’s limits as stated in the relevant aircraft maintenance manual (“AMM”) or engine maintenance manual (“EMM”), such defect shall be repaired at Lessee’s sole cost and expense provided such defect is not
resulting from normal wear and tear due to the accumulation of flight hours and flight cycles from ordinary operation, and except that Lessee will not be responsible for replacing life limited parts which are due for replacement solely as the result
of life expiration but Lessee will be responsible for replacing or repair of LRUs that become unserviceable. 
 3.    Return Conditions.
In addition to any other requirements of this Lease, upon return of the Engine to Lessor, Lessee will ensure that: 

a.    the Engine is free and clear of all Liens (except Permitted Liens) and shall have installed thereon the Parts
installed at Delivery or replacements thereof installed in accordance with the provisions of the Lease Agreement, provided that the title thereto is vested in Lessor; 

b.    the Engine is either (i) serviceable or (ii) unserviceable based on (x) being fully time expired or
(y) borescope findings beyond maintenance manual limits due to normal wear and tear due to the accumulation of flight hours and flight cycles from ordinary operation, and except that Lessee will not be responsible for replacing life limited
parts which are due for replacement solely as the result of life expiration but Lessee will be 

  

			
	15

 responsible for replacing or repair of LRUs that become unserviceable, with no evidence of
FOD, misuse, abuse or Lessee induced or other Operator Exceedance damage; it is specifically recorded that any reduced inspection interval (not related to FOD, misuse or abuse or Lessee induced or other Operator Exceedance damage) per CFM or
maintenance manual shall not be considered a cause to deem the Engine to be unserviceable; 
 c.    in the event the
Engine cannot sustain *             pounds of thrust, has damage beyond
continued time limitation (not related to FOD, misuse or abuse or Lessee induced or other Operator Exceedance damage) the Lessor shall accept the Engine and repair or dispose of it as Lessor deems fit (in this case the Engine shall be deemed
unserviceable and all clauses relating to a serviceable engine shall not apply, however, Lessee shall comply with the MPA (only if it is safe to do so) and EOL inspections referred to in Section 2; 

d.    the Engine shall have installed thereon all Parts installed thereon on the Delivery Date or permitted replacements
thereof in accordance with the Lease Agreement and the Engine will be configured and licensed by CFM International, Inc. as a CFM56-7B26 engine and in an as good condition as at Delivery, normal wear and tear due to the accumulation of flight hours
and flight cycles from ordinary operation excepted, and except that Lessee will not be responsible for replacing life limited parts which are due for replacement solely as the result of life expiration but Lessee will be responsible for replacing or
repair of LRUs that become unserviceable and changes and normal rate of performance deterioration excepted; 
 e.    the
Engine and each of its Parts and components, is free of all deferred or carry-over maintenance items, including pilot log book reports and defects requiring repetitive inspections and will not be “on watch” or have any reduced interval
inspections; 
 f.    the Engine has affixed a current, valid and effective EASA Form 1 and FAA 8130-3 Form with full return-to-service statement, if serviceable, at
*             pounds of thrust; 

g.    with reference to the MPA and EOL inspection referred to in Section 2 and together with the Engine’s
historical and technical data and condition trend monitoring data for the Engine, Lessor is satisfied: 

i.    with the Engine’s status and that there is no indication of an adverse deterioration in the
performance of the Engine which is higher than normal based upon Lessee’s maintenance experience in operating engines of the same type and; 

h.    prior to returning the Engine to Lessor, Lessee will prepare the Engine for shipment by: 

i.    capping and plugging all openings of the Engine; 

ii.    preserving the Engine for three hundred sixty-five (365) days storage, according to the engine preservation
procedure of the AMM or the relevant EMM; and 
 iii.    completely covering the Engine with heat shrink wrap and the
tarpaulin cover or bag (if provided) at Delivery. 
 4.    Non-Incident Statement. Upon
redelivery, Lessee shall issue a Non-Incident Statement in the form set out in Appendix F. 

5.    Redelivery Reports. Upon redelivery of the Engine in accordance with the terms of the Lease Agreement, Lessee will (i) perform
the redelivery checks, tasks and inspections specified in Clause A of Schedule 1 to Appendix C, (ii) deliver to Lessor the redelivery documents specified in Clause B of Schedule 1 to Appendix C and (iii) prepare, execute and deliver to
Lessor the Engine operational report and a redelivery checks and inspection report in the respective forms of Schedule 1 and Schedule 2 to Appendix C. 

  
  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

 6.    Indemnities and Insurance. The indemnities and insurance requirements set forth in
Sections 8 and 10 of the Master Agreement, respectively, will apply to Indemnitees and Lessor’s representatives during the return of the Engine, including the redelivery inspection. 

  

			
	17

 SCHEDULE 1 TO APPENDIX C 

ENGINE REDELIVERY TASK AND DOCUMENTS 
  

	1.1	 A Full Performance Test cell run (“TCR”) according to the respective Engine type manual
requirements including Engine Water Wash. 

 or alternatively, only if the TCR is waived in
accordance with the provisions of the Lease Agreement: 
  

	1.2	 An On Wing Performance Test in the form of a Maximum Power Assurance run or similar test as further
described in Exhibit E.5 with calculated EGTM result including Engine Water Wash to be performed immediately prior to Engine removal. 

  

	1.3	 The Engine Fuel and Oil System shall be preserved long term (365 days) per AMM immediately prior to
return of the Engine in accordance with the Lease Agreement. 

  

	1.4	 A full End of Lease Inspection as required by the end of lease inspection requirements detailed in
Exhibit E.5 of the Lease Agreement. Or respectively the inspection checks recommended by the OEM comprising all of the tasks listed in the current revision of the applicable aircraft manufacturer’s MPD and applicable to the Engine. The
inspection check can be carried out in accordance with Lessee’s Maintenance Program. 

  

	1.5	 A Full Engine Video/DVD Borescope Inspection (cold and hot section) post test cell/ground run is
required in accordance with the AMM including leading edge and trailing edge. 

  

	1.6	 Completely covering the Engine with the tarpaulin cover provided at Delivery. 

 

	1.7	 Engine shipment in accordance with the manufacturer’s specifications/recommendations. Any trucks
used for shipment of the Engine will be equipped with air ride or air cushion suspension system. 

 The
engine has to be returned on the following SHIPPING STAND: 
  

			
	Base P/N                        ,	 	S/N                     
		
	Cradle P/N                     ,	 	S/N                     

  

	2.	 End of Lease Documentation 

On redelivery of the Engine, Lessee shall provide the following documentation to Lessor: 

 

	2.1	 Operator certified NON-INCIDENT STATEMENT shall be issued upon
redelivery, substantially in the form set out in the attached template printed on Airline headed paper and signed by authorized representative of Operator. (Exhibit E.2 of the Lease agreement). 

 

	2.2	 Operator certified ETOPS CERTIFICATION at Engine removal. The ETOPS Certification needs to be on Airline
letterhead signed by authorized representative of Operator. (Exhibit E.3 of the Lease agreement). 

  

	2.3	 Complete operator certified ENGINE OPERATIONAL REPORT (Exhibit E.4 of the Lease agreement) printed on
Airline headed paper, signed by authorized representative of Operator. 

  

	2.4	 Operator certified FAA & EASA and Local Air Authority Airworthiness Directive
(AD) 

	 	 STATUS current to redelivery date on Airline headed paper. It shall include all applicable AD’s,
the Means of compliance for all accomplished AD’s and include the repetitive inspection compliance supporting data (if applicable). 

  

	2.5	 If any AD’s or SB’s have been performed during the lease period, copies of accomplishment
records/documents (job cards, work cards, etc) are required. 

  

	2.6	 Operator certified LLP DISK SHEET at each Engine Removal and Installation. The LLP Sheet needs to be on
Airline letterhead signed and dated. 

  

	2.7	 Operator SERVICEABLE TAG issued in accordance with operator local aviation authority (if applicable).
The copy should remain with the Engine. It should state that the Engine was removed in Serviceable Condition and removal reason. It should also state the Total Engine Time and Total Engine Cycles /TET and TEC) and removal date
and removal location. 

  

	2.8.	 ENGINE TEST CELL REPORT, which shows Engine parameters at Hot Day
Take-off. 

  

	2.9	 Results of an On Wing Performance Test in the form of a Maximum Power Assurance run (MPA) or similar
test (if applicable) with all recorded parameters with calculated and documented EGTM. 

  

	2.10	 A written and certified BORESCOPE REPORT per each stage, LE and TE, based on the Full Engine Video
Borescope Inspection performed after the Test Cell run (or MPA run) and compiled by an approved Air Regulatory Source including two copies of the VIDEO BORESCOPE (DVD or CD-Rom). 

 

	2.11	 ENGINE TREND MONITORING DATA, including take-off and cruise
performance data, cruise mechanical data for the duration of the Engine’s operation throughout the Lease Term. 

  

	2.12	 END OF LEASE (EOL) INSPECTION check list (refer to attached Inspection Check List Exhibit E.5)
completely signed by mechanic/technician and inspector or responsible person within a maintenance organization performing the inspection. Or respectively the inspection checks recommended by the OEM comprising all of the tasks listed in the current
revision of the applicable aircraft manufacturer’s MPD and applicable to the Engine. The inspection check can be carried out in accordance with operator’s maintenance program. 

 

	2.13	 ENGINE ACCESSORY and QEC LIST at Engine redelivery. Engine should be returned with the same inventory as
provided at Delivery. Lessee has to send an updated Engine Accessory and QEC List in accordance with the list set out in 2.25 herein below provided with the Engine at Delivery. Any component changes must be supported with adequate records. At
minimum date of installation, engine TSN/CSN at component installation. All such replacement parts must be certified with FAA dual or EASA dual release certificate, with back to birth traceability on all LLP’s. In addition, full traceability
(TSO/TSR) is required for any significant rotable component. Lessor is entitled to reject a replacement component if it is not in same or higher modification status as original part or satisfied with the standard of the components or the quality of
its associated records. 

  

	2.14	 Engine FAA 8130-3 and EASA FORM ONE RELEASE CERTIFICATE or
alternative a EASA DUAL RELEASE CERTIFICATE or FAA 8130-3 DUAL RELEASE CERTIFICATE. The copy should remain with the Engine. It should state the Total Engine Time and Total Engine
Cycles /TET and TEC), removal date and that the Engine was removed in Serviceable Condition, reason for removal and mention all inspection/work accomplished. (MPA run or test cell run, preservation and preservation date, BSI, “EOL Inspection
Checks”, etc). 

  

			
	19

	2.15	 PRESERVATION TAG with date of expiration confirming that the Engine oil system and fuel system was long
term preserved for 365 days. All openings of the Engine have to be capped and plugged. 

  

	2.16	 A copy of signed/stamped Task Card covering Engine long term preservation. 

 

	2.17	 A copy of operator Aircraft Tech Log Sheet showing Engine installation/removal from wing.

  

	2.18	 A copy of signed/stamped Task Card showing Engine installation/removal from wing. 

 

	2.19	 A copy of maintenance records showing Engine conversion at engine installation/removal from wing (if
applicable). 

  

	2.20	 TECHNICAL LOG PAGES and PILOT REPORTS related to the Engine that occurred throughout the Lease
Term including the respective corrective actions. 

  

	2.21	 UNSCHEDULED MAINTENANCE EVENTS and INSPECTION REPORTS. 

 

	2.22	 SCHEDULED MAINTENANCE and INSPECTIONS accomplished in accordance with operator APPROVED MAINTENANCE
PROGRAM 

  

	2.23	 OPEN/DEFERRED/CARRY FORWARD items, documentation covering any Open items, Deferred Defects or Carry
Forward items. 

  

	2.24	 DIGITAL PHOTOS of the Engine accessories including Engine data plate prior to covering, and photos of
the Engine in bagged condition (Refer to MTU EOL check list Exhibit E.5). 

  

									
		 	 MTU Maintenance Lease Services
	 		 		 	
		 	CFM56-7B20 ESN        874771	 		 		 	

 ACCESSORY INVENTORY is issued by China Airlines dated 23 August 2017, and is set out in Appendix I hereto. 

  

 SCHEDULE 2 TO APPENDIX C 
  

									
	 END
 OF

LEASE
 REQUIREMENTS

TASK #
	 	 TASK DESCRIPTION
	 	 BOEING MPD &

AMM REFERENCE
	 	 REMARKS
	 	 INSPECTOR

Date/Signature/
Stamp

	1	 	ENGINE DOCUMENTATION CHECK
					
	1.1	 	CHECK MAINTENANCE LOG BOOKS AND PROVIDE PAPERWORK FOR ANY ENGINE RELATED MAINTENANCE REPORTS, PILOT REPORTS AND DEFERRED DEFECTS REPORTED.	 	N/A	 	 OPERATOR
 TASK
	 	
					
		 	NOTE: Not applicable in Shop.	 		 		 	
					
	1.2	 	CHECK AD NOTE STATUS. CHECK FOR REQUIRED FAA-EASA AD AND SB OEM CAT 1, 2 INCORPORATION.	 	N/A	 		 	
					
		 	 NOTE: When Engine in MTU Shop - SB

check per MTU lease group advice.
	 		 		 	
					
	1.3	 	CHECK AIRCRAFT DATA FOR ATA CHAPTER 70-80 CLASS 3 FAULTS.	 	N/A	 	 OPERATOR
 TASK
	 	
					
		 	NOTE: Not applicable in Shop.	 		 		 	
		
	2	 	ENGINE GENERAL INSPECTION
					
	2.1	 	CLEAN THE ENGINE GAS-PATH WITH PURE WATER.	 	
AMM 72-00-00-100-

803
 EM 72-00-00-100-002 Clean 002
	 		 	
					
		 	NOTE: Before On-Wing or Test Cell run.	 		 		 	
					
	2.2	 	PERFORM FULL PERFORMANCE TEST CELL RUN TEST 003 AND 009 OR FOLLOWING GROUND TESTS: NO. 3A, 5, 7, 8, 13 AND PROVIDE WRITTEN REPORTS.	 	 AMM 71-00-00-700

(ON-WING-TEST)
 EM 72-00-00-760 (TEST CELL)
	 		 	
					
		 	NOTE: Refer to applicable lease agreement for required Tests (On-Wing or Test Cell).	 		 		 	
					
	2.3	 	 PRESERVATION OF AN ENGINE FROM ONE MONTH TO ONE YEAR.

ATTACH PRESERVATION INFORMATION LABEL ON ENGINE OIL TANK THAT ENGINE HAS BEEN PRESERVED.
	 	 AMM 71-00-03-600-

811
 (ON WING)

ESM 72-00-00-500-001

(TEST CELL)
	 		 	
					
		 	NOTE: On-Wing or Test Cell.	 		 		 	

  

			
	21

									
	2.4	 	 PERFORM RECEIVING PHOTO DOCUMENTATION OF ENGINE BUILD CONFIGURATION. (FOLLOWING VIEWS: FRONT, RH FAN MODUL, BOTTOM FAN MODULE, LH FAN MODULE,
UPPER FAN MODULE, RH CORE MODULE, BOTTOM CORE MODULE, LH CORE MODULE, UPPER CORE MODULE, REAR, ENGINE DATA PLATE, ENGINE OWNER PLATE, RH SHIPPING STAND GENERAL VIEW, LH SHIPPING STAND GENERAL VIEW, SHIPPING STANDS WHEEL, SHIPPING STAND
IDENTIFICATION PLATES, SHIPPING STAND TOWING BARS, SHIPPING STAND BASE AND CRADLE IDENTIFICATION PLATE).
  

NOTE: After Engine removal.
	 	N/A	 		 	
					
	2.5	 	 VERIFY CURRENT EEC SOFTWARE VERSION ON INSTALLED EEC.
  

NOTE: Pay attention to information on software modification label below EEC identification plate.
	 	EEC P/N:	 		 	
	 	                            	 		 	
	 	                            	 		 	
	 	  
 EEC S/N:
	 		 	
	 	                            	 		 	
	 	                            	 		 	
					
		 		 	Software Version:	 		 	
		 		 	                            	 		 	
		 		 	                            	 		 	
					
	2.6	 	 CREATE AND COMPLETE ENGINE
 INVENTORY
LIST.
	 	N/A	 		 	
					
		 	NOTE: Based on MTU lease group delivered listing.	 		 		 	
					
	2.7	 	 CREATE AND COMPLETE MISSING PARTS
 LIST AGAINST
EIPC AND PPBUM.
	 	N/A	 		 	
					
		 	 NOTE: Applicable when engine delivered with Missing parts list.

NOTE: When Engine in MTU Shop - Missing part check per MTU lease group advice.
	 		 		 	
					
	2.8	 	EXTERNAL GENERAL VISUAL INSPECTION OF ENGINE FOR ANY OBVIOUS DAMAGE THAT MAY HAVE OCCURRED DURING TRANSPORTATION.	 	N/A	 		 	
					
		 	NOTE: Task should be performed after Engine transportation from removal location to locatin where visual inspections are carried-out.	 		 		 	
				
	2.9	 	 GENERAL VISUAL INSPECTION OF ENGINE
 DRAIN
LINES.
	 	AMM 71-71-00-200-802	 	
					
	2.10	 	OPERATIONALLY CHECK LEFT/RIGHT ENGINE ALL DRAIN LINES.	 	 MPD 71-040-01/02

AMM 
71-71-00-700-801
	 		 	
					
		 	For info only: every 6 years	 		 		 	

  

									
	3	 	ENGINE STAND AND COVER INSPECTION	 		 		 	
					
	3.1	 	 PERFORM GENERAL VISUAL INSPECTION OF
 ENGINE
SHIPPING STAND (BASE AND
 CRADLE) INCLUDING WHEELS, TOW BARS, RIGHT GUARDS FOR ANY DAMAGES AND MISSING PARTS.

REPORT TO MTU LEASE GROUP ANY
 FINDINGS OR MISSING PARTS.
	 	N/A	 		 	
					
	3.2	 	 INSPECT ENGINE COVER FOR DAMAGES
 SUCH AS TEARS
AND HOLES.
	 	N/A	 		 	
			
	4	 	ENGINE OIL SYSTEM INSPECTION	 	
					
	4.1	 	 DETAILED INSPECTION OF THE LEFT/RIGHT ENGINE FWD SUMP, AFT SUMP, AGB/TGB MAGNETIC CHIP DETECTORS FOR PARTICLES (FOR ENGINES WITH MCD) OR
INTERROGATE DMS FOR CHIP DETECTOR STATUS.
 NOTE: FOR ENGINES WITH DEBRIS MONITORING SYSTEM.

 
 For info only: Inspection Threshold 500 FH, Repeat 500 FH.
	 	 MPD 72-320-01/02

AMM 79-00-00-200-804

AMM 79-00-00-710-801
	 	 CONTAMINATION
 FOUND:

 
 YES

NO
  

Note: circle as approprlate.
	 	
					
	4.2	 	 REMOVE, INSPECT, AND REPLACE THE
 LEFT/RIGHT
ENGINE OIL SUPPLY FILTER ELEMENT.
 INSPECT FOR CONTAMINATION AND IDENTIFY AS NECESSARY. REPLACE WITH

NEW FILTER AND CONSUMABLES.
	 	 MPD 79-010-01/02

AMM 79-21-03-000-802

AMM 79-21-03-400-801
	 	 CONTAMINATION
 FOUND:

 
 YES

NO
	 	
					
		 	 For info only: Inspection Threshold 7500

FH, Repeat 7500 FH.
	 		 	Note: circle as approprlate.	 	
				
	4.3	 	DETAILED INSPECTION OF THE LEFT/RIGHT ENGINE OIL SUPPLY FILTER POP-OUT INDICATOR.	 	AMM 79-00-00-200-805	 	

  

			
	23

									
	4.4	 	 REMOVE, INSPECT, AND REPLACE THE LEFT/RIGHT ENGINE OIL SCAVENGE FILTER ELEMENT.

INSPECT FOR CONTAMINATION AND IDENTIFY IF NECESSARY. REPLACE WITH NEW FILTER AND CONSUMABLES.
	 	 MPD 79-040-01/02 AMM 79-21-06-000-801
 AMM 79-21-06-400-801
	 	 CONTAMINATION
 FOUND:

 
 YES

NO
	 	
					
		 	 For info only: Inspection Threshold 7500

FH, Repeat 7500 FH.
	 		 	Note: circle as approprlate.	 	
					
	4.5	 	DETAILED INSPECTION OF THE LEFT/RIGHT ENGINE STARTER MAGNETIC CHIP DETECTOR FOR METAL CHIPS.	 	 MPD 80-010-01/02

AMM 80-11-01-200-801
	 	 CONTAMINATION
 FOUND:
	 	
					
		 	 For info only: Inspection Threshold 1600

FC, Repeat 1600 FC
	 		 	 YES
 NO
	 	
					
		 		 		 	Note: circle as approprlate.	 	
				
	4.6	 	 EXTERNAL OIL SYSTEM INSPECTION

NOTE: applicable to engine areas only.
	 	AMM 79-00-00-200- 802	 	
			
	5	 	ENGINE FUEL SYSTEM INSPECTION	 	
					
	5.1	 	 REMOVE AND REPLACE THE LEFT/RIGHT ENGINE FUEL FILTER .

REPLACE WITH NEW FILTER AND CONSUMABLES.
  

NOTE: Do not install Fuel Filters listed in
 AD 2006-26-01!
 Record part number of newly installed Fuel Filter.

 
 For info only: Inspection Threshold 6000

FH, Repeat 6000 FH
	 	 MPD 73-010-01/02

AMM 73-11-02-000-801

AMM 73-11-02-400-801

FAA AD Note 2006-26-01
	 	 CONTAMINATION
 FOUND:

 
 YES

NO
  

Note: circle as approprlate.
 New P/N
installed:
	 	
		 		 		 	                    
		 		 		 	                    
	5.2	 	 IF ENGINE FUEL FILTER IS CONTAMINATED:
 CHECK
FUEL NOZZLE FILTER FOR CONTAMINATION AND REPLACE WITH NEW FILTER ELEMENT.
	 	 AMM 73-11-03-000

AMM 73-11-03-400
	 	 CONTAMINATION
 FOUND:

 
 YES

NO
	 	
		 		 		 	  
 Note: circle as approprlate.
	 	
				
	5.3	 	FUEL MANIFOLDS INSPECTION/CHECK.	 	 AMM 73-11-05--700-801
 CFMI SB 72-0876
	 	

  

									
	6	 	FAN/INTERMEDIATE CASE INSPECTION	 		 	
					
	6.1	 	 DETAILED INSPECTION OF LEFT/RIGHT ENGINE INLET AND FAN BLADES.
  

For info only: Inspection Threshold 2500
 FH, Repeat
2500 FH.
	 	 MPD 72-020-01/02

AMM 72-21-00-220-801
	 		 	
					
	6.2	 	 RELUBRICATE LEFT/RIGHT ENGINE FAN BLADES DOVETAIL. (FAN BLADES REMOVED) VISUALLY INSPECT REMOVED COMPONENTS AND EXPOSED AREAS (SPINNER CONE,
RETAINING RING, PLATFORMS, SPACERS, FAN BLADES, SHIMS, FAN DISK, ETC..).
 PAY SPECIAL ATTENTION FOR EVIDENCE OF BIRD STRIKE AND/OR FOD DAMAGE.

NOTE: To be performed if required and based on last lubrication (MTU to advise).
	 	 MPD 72-025-01/02

AMM 72-21-00-640-801

CFMI CESM 005
 AMM 72-21-01-200-801
 AMM 72-21-02-200-801
 CFMI SB
72-0884
	 		 	
					
		 	For Info only: Inspection Threshold 5000 FH or 3000 FC, Repeat 5000 FH or 3000 FC (Whichever occurs first!) SB 72-0884 inspection once a year.	 		 		 	
					
	6.3	 	PREPARE ACTUAL FAN BLADE DISTRIBUTION LIST WHICH INCLUDE ENGINE SERIAL NUMBER, ISSUE DATE, FAN BLADE POSITION, PART NUMBER, SERIAL NUMBER, MOMENT WEIGHT AND TECHNICIAN OR INSPECTOR NAME WITH SIGNATURE. CHECK EFFECTIVITY OF SB
72-0797 FOR EACH FAN BLADE AND RECORD COMPLIANCE. NOTE: Applicable only if Fan Blades are removed.	 	CFMI SB 72-0797	 		 	
				
	7	 	HPC FRONT STATOR/COMBUSTION CASE INSPECTION	 		 	
					
	7.1	 	HPC FRONT STATOR INSPECTION.	 	AMM 72-32-00-200-801	 		 	
				
	7.2	 	COMBUSTION CASE INSPECTION.	 	 AMM
72-41-00-200-801
	 	
				
	8	 	LPT MODULE INSPECTION	 		 	
					
	8.1	 	 VISUAL CHECK OF THE LEFT/RIGHT ENGINE
 AFT
MOUNTS CLEVIS FOR STRUCTURAL INTERGRITY FAILURE.
	 	 MPD 72-300-01/02

AMM 72-56-00-200-802
	 		 	
					
		 	 For info only: Inspection Threshold 7500

FH, Repeat 7500 FH.
	 		 		 	

  

			
	25

									
	8.2	 	LOW PRESSURE TURBINE CASE INSPECTION.	 	AMM 72-54-00-200-801	 		 	
			
	9	 	ENGINE EXHAUST SYSTEM INSPECTION	 	
					
	9.1	 	 DETAILED INSPECTION OF THE LEFT/RIGHT
 ENGINE
EXHAUST PLUG DRAIN PAN AND TUBE FOR CONDITION AND SECURITY.
	 	 MPD 78-011-01/02

AMM 78-11-00-210-803
	 		 	
					
		 	 NOTE: Applicable to Engine with Exhaust Plug equipped with Drain Pad and tube system installed.

ACCESS NOTE: Engine Exhaust Plug removal required.
 For
info only: Inspection interval every engine change.
	 		 		 	
				
	9.2	 	PRIMARY NOZZLE ASSEMBLY AND PRIMARY PLUG ASSEMBLY INSPECTION.	 	AMM 78-11-00-210-802	 	
		 		 		 		 	
	9.3	 	VISUALLY INSPECT PRIMARY EXHAUST NOZZLE LABYRINTH SEALS.	 	AMM 78-11-00-210-801	 	
			
	10	 	ACCESSORY GEARBOX MODULE INSPECTION	 	
					
	10.1	 	 VISUAL CHECK OF THE LEFT/RIGHT ENGINE ACCESSORY GEARBOX/TRANSFER GEARBOX MOUNT FLANGES AND FAN CASE AND FAN FRAME ATTACHMENT MOUNTS.

 
 For info only: Inspection Threshold 15000 FH, Repeat 15000 FH.
	 	 MPD 72-070-01/02

AMM 72-20-00-210-801

AMM 72-60-00-200-801

AMM 72-63-00-200-801
	 		 	
			
	11	 	FRONT MOUNT, AFT MOUNT, THRUST MOUNTS AND THRUST LINKS INSPECTION	 	
					
	11.1	 	GENERAL VISUAL INSPECT FORWARD ENGINE MOUNT ASSEMBLY INCLUDING FAN CASE FITTING, SIDE LINKS, HANGER AND LINK PINS.	 	 MPD 54-010-01/02

AMM 51-05-01-210

AMM 54-05-03-210
	 		 	
					
		 	For info only: Inspection Threshold 6 YRS, Repeat 18000 FC whichever comes first.	 		 		 	
					
	11.2	 	GENERAL VISUAL INSPECT LEFT STRUT ATTACH BOLTS AT FORWARD ENGINE MOUNT.	 	 MPD 54-015-01/02

AMM 51-05-01-210

AMM 54-05-03-210
	 		 	
		 	For info only: Inspection Threshold 9 YRS, Repeat 18000 FC whichever comes first.	 		 		 	

									
	11.3	 	 GENERAL VISUAL INSPECTION OF FORWARD AND AFT ENGINE MOUNT TO STRUT SHEAR PINS.

 
 NOTE: Engine off-wing.

 
 For info only: Inspection intervall at engine removal.
	 	 MPD 54-020-01/02 AMM 51-05-01-210
 AMM 54-05-03-210
	 		 	
					
	11.4	 	 GENERAL VISUAL INSPECTION OF AFT
 ENGINE MOUNT
ASSEMBLY INCLUDING THRUST LINKS AND THRUST LINK PINS; MOUNT TO ENGINE LEFT, CENTER AND RIGHT LINKS, INCLUDING LINK PINS;
 HANGAR AND EVENER BAR; ATTACH
BOLTS.
  
 For info only: Inspection Threshold 6 YRS, Repeat 18000 FC.
	 	 MPD 54-030-01/02

AMM 51-05-01-210

AMM 54-05-03-210
	 		 	
					
	11.5	 	 VISUAL CHECK OF THE LEFT/RIGHT ENGINE

ATTACHMENT BOLTS FOR THE THRUST MOUNT FITTINGS.
  

For info only: Inspection Threshold 10000
 FC, Repeat
10000 FC.
	 	 MPD 72-100-01/02

AMM 72-23-04-200802
	 		 	
					
	11.6	 	 VISUAL CHECK OF THE LEFT/RIGHT ENGINE
 THRUST
MOUNT FITTINGS.
  
 For info only: Inspection Threshold 15000 FH, Repeat 15000
FH.
	 	 MPD 72-110-01/02

AMM 72-2304-200-801
	 		 	
					
	11.7	 	THRUST LINKS VISUAL INSPECTION.	 	AMM 71-21-02-210-802	 		 	
					
	11.8	 	 AFT ENGINE MOUNT VISUAL INSPECTION.
  

NOTE: Engine off-wing.
  

NOTE: Ensure Aft Mount and Center Link has correct marking IAW BOEING alert SB 737-71A1462 and that the Center Link
is correctly installed on Aft Mount. Please advise to MTU leasegroup if Center Link was incorrectly installed or if markings are missing from Aft Mount Assy.
	 	 AMM
71-21-00-200-805
 FAA AD Note 2011-18-10
 BOEING SB
737- 71A1462 REV.3
	 		 	
				
	12	 	HYDRAULIC SYSTEM COMPONENTS INSPECTION	 		 	

  

			
	27

									
	12.1	 	 REPLACE EDP CASE DRAIN FILTER ELEMENT. REPLACE WITH NEW FILTER ELEMENT AND CONSUMABLES.

 
 NOTE: If you find a large quantity of small metal particles, large metal particles
that are not of equal dimensions, or a large quantity of steel particles, then replace the hydraulic pump. Write down the results of the filter inspection and give them to the pump overhaul facility.

 
	 	 MPD 29-050-01/02 AMM 29-11-51-000-801
 AMM 29-11-51-400-801
	 	 CONTAMINATION
 FOUND:

 
 YES

NO
  

Note: circle as
 approprlate.
	 	
		 	 For info only: Inspection Threshold 2400

FH, Repeat 2400 FH.
	 		 		 	
			
	13	 	GENERAL INSPECTION OF IDG (IF INSTALLED)	 	
					
	13.1	 	 CHANGE IDG OIL.
  

For info only: Threshold 1800 FH, Repeat 1800 FH
	 	 MPD 24-010-01/02

AMM 12-13-21-600-802
	 		 	
					
	13.2	 	 DETAILED INSPECTION OF IDG DELTA P

INDICATOR.
  

NOTE: When the DPI is in the up position and if the DPI resets decal (if installed) shows it is the 4th DPI extension, the IDG must be
replaced.
	 	 MPD 24-020-01/02

AMM 12-13-21-200-802
	 		 	
					
		 	 For info only: Threshold 800 FH, Repeat

800 FH.
	 		 		 	
					
	13.3	 	 DETAILED INSPECTION OF IDG OIL

LEVEL.
  

For info only: Inspection Threshold 800 FH, Repeat 800 FH.
	 	 MPD 24-030-01/02

AMM 12-1321-200-801
	 		 	
					
	13.4	 	 REPLACE IDG CHARGE AND SCAVENGE OIL
 FILTER

INSPECT FOR CONTAMINATION AND IDENTIFY IF NECESSARY. REPLACE WITH NEW FILTER AND CONSUMABLES.

 
 Note: If the scavenge filter and the IDG oil condition are not satisfactory, or the
DPI Resets decal (if installed) shows it is the 4th extension, the IDG must be replaced.
  

For info only: Inspection Threshold 1800
 FH, Repeat
1800 FH.
	 	 MPD 24-040-01/02

AMM 24-11-41-000-801

AMM 24-11-41-200-801

AMM 24-11-41-400-801
	 	 CONTAMINATION
 FOUND:

 
 YES

NO
  

Note: circle as
 approprlate.
	 	
					
	13.5	 	 TORQUE CHECK OF IDG QUICK ATTACH/DETACH (QAD) COUPLING.
  

For info only: Inspection Threshold 3600 FH, Repeat 3600 FH.
	 	 MPD 24-050-01/02

AMM 24-11-61-200-801
	 		 	

									
	13.6	 	 INSPECT (GVI) THE ENGINE IDG SURFACE
 AIR COOLED
OIL COOLER
  
 For info only: Inspection Threshold 7560

FH, Repeat 7560 FH.
	 	MPD 24-060-01/02
AMM 24-11-21-200-801	 		 	
		
	14	 	INSPECTION OF ELECTRICAL HARNESSES, CABLES
					
	14.1	 	 STANDARD ENGINE WIRING AND EQUIPMENT CHECK.
  

NOTE: The retention test for the connector sockets is not required.
	 	
AMM 
70-70-01-200-801
 (without retension test)
	 		 	
					
	14.2	 	IGNITION EXCITER INSPECTION.	 	AMM 74-11-01-200-801	 		 	
					
	14.3	 	 DETAILED INSPECTION OF BOTH IGNITION
 PLUGS.

 
 Plug Replacement interval 1000cycle or 2000hr (whichever comes first)
	 	 AMM
74-21-02-200-801
 CESM 006
	 	 IGNITION
 PLUGS

REPLACED:
  

YES
 NO
	 	
					
		 		 		 	 NOTE: circle as
 appropriate
	 	
					
	14.4	 	 DETAILED INSPECTION OF BOTH ENGINE
 IGNITION
LEADS.
  
 For info only: Inspection Threshold 4000 FC, Repeat 4000 FC.
	 	 MPD 74-020-01/02

AMM 74-21-01-200-801
	 		 	
					
	14.5	 	 DETAILED INSPECTION OF CONNECTORS
 FOR TIGHTNESS
(ALL CONNECTORS ON HARNESS J5, J6, J7, J8, J9, CJ9, J10, CJ10, MW0301, MW0302, MW0303 AND MW0304).
  

For info only: Inspection Threshold 15000 FH, Repeat 15000 FH.
	 	 MPD 20-120- 01/02

AMM 05-55-10-220-801
	 		 	
					
	14.6	 	 INSPECT (DETAILED) THE IDG POWER FEEDER WIRING AND CONNECTED EWIS-ENGINE #1/#2 (EZAP).

 
 For info only: Inspection Threshold 5500 FC or 30 MO, Repeat 5500 FC or 30 MO
(whichever comes first)
	 	 MPD 20-470/480-00

AMM 
05-42-04-211-801/802
 AMM
20-60-03-100-801
	 		 	
		
	15	 	VIDEO BORESCOPE INSPECTION (TO BE PERFORMED POST GROUND RUN OR POST TEST CELL RUN)
					
	15.1	 	BORESCOPE INSPECTION PREPARATION.	 	AMM 72-00-00-200-802	 		 	

  

			
	29

									
	15.2	 	 PERFORM VIDEO BORESCOPE INSPECTION
 OF BOOSTER
STG. 2 THROUGH STG.4 BLADES.
  
 NOTE: Following areas have to be inspected - LE of
STG. 2 Blades through the inlet to the primary gas path or the booster inlet, TE of STG. 3 Blades through the borescope port S0, LE of STG. 4 Blades through the borescope port S0.
	 	AMM 72-00-00-200-803	 		 	
					
	15.3	 	 PERFORM VIDEO BORESCOPE INSPECTION OF HPC ROTOR BLADES STG. 1 TROUGH STG.9.

 
 NOTE: Inspect all blades Leading Edge (LE) and Trailing Edge (TE).
	 	AMM 72-00-00-200-804	 		 	
					
	15.4	 	 PERFORM VIDEO BORESCOPE INSPECTION OF COMBUSTOR.
  

NOTE: Do a “complete inspection” (Dome Assy, Inner & Outer Liner, Fuel Nozzles tips, Swirlers) using main igniter plugs and all available
combustor borescope plugs. Use fiberscope to view all inspection areas.
	 	AMM 72-00-00-200-805	 		 	
					
	15.5	 	 PERFORM VIDEO BORESCOPE INSPECTION OF HPT NOZZLE GUIDE VANES.
  

NOTE: Perform complete 360° fiberscope inspection of LE (concave side) and TE (convex side).
	 	 AMM
72-00-00-200-806
 (SAC &
DAC engines)
 AMM
72-00-00-200-818
 (TI & BE
engines)
	 		 	
					
	15.6	 	 PERFORM VIDEO BORESCOPE INSPECTION
 OF HPT
BLADES.
  
 NOTE: Perform inspection of LE & TE and Tips of the HPT
Blades.
	 	AMM 72-00-00-200-807	 		 	
					
	15.7	 	 PERFORM VIDEO BORESCOPE INSPECTION
 OF HPT
SHROUDS.
  
 NOTE: Perform complete 360° fiberscope inspection of HPT
Shrouds from forward side and aft side.
	 	AMM 72-00-00-200-815	 		 	
					
	15.8	 	 PERFORM VIDEO BORESCOPE INSPECTION
 OF LPT
NOZZLE STG. 1.
  
 NOTE: Perform complete 360° fiberscope inspection of LE and
TE.
	 	AMM 72-00-00-200-811	 		 	
					
	15.9	 	 PERFORM VIDEO BORESCOPE INSPECTION
 OF LPT STG.
1 THROUGH 3 BLADES.
  
 NOTE: Perform inspection of LE & TE.
	 	AMM 72-00-00-200-808	 		 	

									
	15.10	 	 PERFORM VIDEO BORESCOPE INSPECTION OF LPT STG. 4 BLADES.
  

NOTE: Perform inspection of LE & TE.
	 	AMM 72-00-00-200-809	 		 	
				
	16	 	POST BSI TASKS	 		 	
					
	16.1	 	REINSTALL ALL BSI PLUGS AND REMOVED ‘ACCESS’ HARDWARE.	 	AMM 72-00-00-200	 		 	
					
	16.2	 	HANDCRANKING DRIVE COVER INSTALLATION.	 	AMM 72-63-01-400-801	 		 	
					
	16.3	 	 INDENPENDENT INSPECTION OF CORRECT
 INSTALLATION
OF THE HAND-CRANKING COVER.
  
 NOTE: Applicable for PRE SB 72-0564 or
 PRE SB 72-0879 engine.
	 	 AMM
72-63-01-400-801
 EASA AD 2012-0209 FAA AD Note 2013-26-01
 CFMI SB 72-0564, 72-0879
	 		 	
					
	17	 	ENGINE PREPARATION FOR STORAGE AND SHIPMENT	 		 		 	
					
	17.1	 	 PERFORM OUTGOING PHOTO
 DOCUMENTATION OF ENGINE
BUILD CONFIGURATION.
 (FOLLOWING VIEWS: FRONT, RH FAN
 MODUL,
BOTTOM FAN MODULE, LH FAN MODULE, UPPER FAN MODULE, RH CORE MODULE, BOTTOM CORE MODULE, LH
 CORE MODULE, UPPER CORE MODULE,

REAR, ENGINE DATA PLATE, ENGINE
 OWNER PLATE, RH SHIPPING
STAND
 GENERAL VIEW, LH SHIPPING STAND GENERAL VIEW, SHIPPING STANDS WHEEL, SHIPPING STAND IDENTIFICATION PLATES, SHIPPING STAND TOWING BARS, SHIPPING STAND
BASE AND CRADLE IDENTIFICATION PLATE).
  
 NOTE: After engine (ground run) or test
cell run.
	 	N/A	 		 	
					
	17.2	 	DRAIN ENGINE FUEL AND OIL SYSTEM FOR AIR TRANSPORTATION AS APPLICABLE. ATTACH INFORMATION LABEL ON ENGINE OIL TANK THAT ENGINE SYSTEMS HAVE BEEN DRAINED.	 	 AMM
12-13-11-600-803
 AMM 71-00-03-600
	 		 	

  

			
	31

									
	17.3	 	ENSURE ALL ENGINE OPENINGS ARE SEALED, INCLUDING STRUTS, PIPING AND ACCESSORY OPENINGS WITH CAPS OR PLUGS AND PLASTIC FILM.	 	
AMM 71-00-03-600-811

(ON WING)
 ESM 72-00-00-500-001
 (TEST CELL)
	 		 	
					
	17.4	 	 INSTALL DESICCANT AND ENGINE COVER.
 CLOSE THE
COVER.
  
 NOTE: Do not let desiccant touch the engine hardware.
	 	
AMM 71-00-03-600-811

(ON WING)
 ESM 72-00-00-500-001
 (TEST CELL)
	 		 	
					
	17.5	 	 PERFORM PHOTO DOCUMENTATION OF
 COVERED ENGINE
INCLUDING SHIPPING STAND.
 (FOLLOWING OVERALL VIEWS: FRONT, RH SIDE, LH SIDE, REAR)
	 	N/A	 		 	
					
	17.6	 	 PERFORM EASA FORM ONE WITH FAA
 DUAL RELEASE OR
FAA FORM 8130-3 WITH EASA DUAL RELEASE FOR THE REALIZED
 END OF LEASE INSPECTION.
	 	N/A	 		 	

 Appendix D – Use Fee Amount (Flight Hour) 

 

																																					
	 Flight
Hour to
Cycle
Ratio
	  	.62 -
.87	  	.87 -
1.12	  	1.12 -
1.37	 	  	1.37 -
1.62	 	  	1.62 -
1.87	 	  	1.87 -
2.12	 	  	2.12 -
2.37	 	  	2.37 -
2.62	  	2.62 -
2.87	  	2.87 -
3.12	 	  	> 3.12	 
	 AREA 1
	  	*                 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	*                 	  	 	*       	 	  	 	*       	 
	 AREA 2
	  	*                 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	*                 	  	 	*       	 	  	 	*       	 
	 AREA 3
	  	*                 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	 	*       	 	  	*                 	  	 	*       	 	  	 	*       	 

 NOTE: These amounts are subject to annual escalation at the rate of *        per annum commencing on January 1, 2018 (monthly derate above 12%). 

AREA 1, AREA 2, and AREA 3 are defined by the following map: 
 

 

  

			
	33
	

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission. 

 Appendix E – Harsh Environment Countries 

 

					
		 	Harsh Environment	 	
		 	Countries	 	
		 	Afghanistan	 	
		 	Algeria	 	
		 	Armenia	 	
		 	Azerbaijan	 	
		 	Bahrain	 	
		 	Burkina Faso	 	
		 	Chad	 	
		 	Djibouti	 	
		 	Egypt	 	
		 	Eritrea	 	
		 	Ethiopia	 	
		 	Gambia	 	
		 	Georgia	 	
		 	Guinea	 	
		 	Guinea-Bissau	 	
		 	Iran	 	
		 	Iraq	 	
		 	Israel	 	
		 	Jordan	 	
		 	Kazakhstan	 	
		 	Kuwait	 	
		 	Kyrgyzstan	 	
		 	Lebanon	 	
		 	Libya	 	
		 	Mali	 	
		 	Mauritania	 	
		 	Mongolia	 	
		 	Morocco	 	
		 	Niger	 	
		 	Oman	 	
		 	Pakistan	 	
		 	Palestinian Territories	 	
		 	Qatar	 	
		 	Saudi Arabia	 	
		 	Senegal	 	
		 	Sierra Leone	 	
		 	Somalia	 	
		 	Sudan	 	
		 	Syria	 	
		 	Tajikistan	 	
		 	Tunisia	 	
		 	Turkmenistan	 	
		 	United Arab Emirates	 	
		 	Uzbekistan	 	
		 	Yemen	 	

 Appendix F – Non-Incident Statement 

(Lessee shall submit the following statement on Sub-Lessee’s Letterhead to Lessor upon return of the Engine.)

 NON-INCIDENT STATEMENT 

Dated:                         

                          
           (“Operator”) warrants and represents that to the best of its knowledge and belief based upon a reasonable due diligence of the Engine (as herein defined), at the time of the
delivery of such engine and/or engine part(s) more particularly described as one CFM International, Inc. model: CFM56-7 aircraft engine, bearing engine serial number: 874771 (collectively, the
“Engine”), together with the respective records and documentation, to Contrail Aviation Support, LLC (“Lessor”), as of the above referenced date: 
  

			
	Engine first operated by Operator on:	  	
		
	Total Hours as received:	  	Total Cycles as received:
		
	Engine last operated by Operator on:	  	
		
	Total Hours at return:	  	Total Cycles at return:
		
	Operated at Thrust Level:	  	

 During the period of time Operator operated and maintained the Engine, including the components, parts or materials installed
therein or thereon: 
  

	1.	 such Engine was not obtained from any military or government source; and 

 

	2.	 such Engine, was not (i) involved in an accident, incident, fire or a major failure, (ii) exposed to
extreme environmental conditions, severe stress or heat beyond limits, (iii) immersed in salt water or exposed to corrosive agents outside normal operation, unless, in each case, the Engine, and/or such components, parts, or materials have been
restored to a serviceable condition in accordance with the original engine manufacturer’s approved technical data. 

 This statement,
including the warranty and representations described herein, may be disclosed to customers of Lessor or any other third party recipient of such Engine. 
  

			
	                            

			
		
	By:	 	 

			
		
	Typed Name:	 	 

			
		
	Title:	 	 

 Note: An authorized officer or designee of Operator shall sign this statement. A mechanically applied signature is not
acceptable. 

  

			
	35

 Appendix G – Form of Certification and Representation Regarding Items Subject to
Export 
 Control Requirements 

Certification and Representation 

Regarding Items Subject to Export Control Requirements 

The information provided on this certification shall be used by Contrail Aviation Support, LLC (“Contrail”), for the purpose of ensuring compliance
with U.S. laws and regulations regarding export controls and economic sanctions. All information provided on this form shall be treated as proprietary and shall not be provided to a third party, other than upon the request of the U.S. Government,
without prior authorization from MTU Maintenance Lease Services B.V. (“MTU”). MTU understands that items, technical data, and/or services to be provided by Contrail are subject to U.S. Government export control requirements and certifies
and represents that MTU: 
  

	(1)	 Intends that the items, technical data, and/or services provided by Contrail are solely for civil end-use and will not be used for any other purpose or end-use connected with weapons proliferation, satellite usage, military applications, chemical biological or nuclear
weapons, or items capable of delivering such weapons unless prior authorization is sought and obtained from the relevant U.S. Government agencies pursuant to the Export Administration Regulations, the International Traffic in Arms Regulations
or the relevant sanctions regimes maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Controls; 

  

	(2)	 Understands that the items, technical data and/or services will not be used for any purpose related to a
military end-use by the People’s Republic of China; 

  

	(3)	 Understands that the items may not be exported or re-exported for the
use of a foreign vessel or aircraft unless, under the EAR, a license exception exists or no license is required to ship the items to: (a) the country in which the vessel or aircraft is located; (b) the country in which the vessel or
aircraft is registered (or will be registered if under construction); and (c) the country (or foreign national) which controls, leases, or charters the vessel or aircraft; 

 

	(4)	 Will not transfer, export or re-export items, technical data, and/or
services provided by Contrail to destinations subject to a U.S. or U.N. arms embargo, to a destination subject to anti- terrorism export controls, or in a manner otherwise contrary to U.S. law, including, but not limited to Iran, Sudan, North Korea,
Syria and Cuba; 

  

	(5)	 Is not debarred, suspended, prohibited or impaired from exporting,
re-exporting, receiving, purchasing, procuring, or otherwise obtaining any product, commodity of technical data regulated by any agency of the U.S. Government; and 

 

	(6)	 Will use the item(s), technical data and/or service provided by Contrail for: subleased spare engine for
commercial use only. 

  

	(7)	 If other than MTU or an operator in the United States of America, please identify the ultimate end user(s) and
country(ies) of ultimate destination of the item(s), technical data and/or services (Attach a separate sheet if necessary) 

Name: 

Address: 

Ultimate Destination: 
  

	(8)	 In the event there are additions or changes to the information provided above, MTU shall provide the new
information to Contrail, in writing, as soon as it becomes available. 

  

 MTU further certifies and represents that item(s), technical data, and/or services to be provided by
Contrail, either directly or indirectly: 
  

	(9)	 Will not be transferred to any department, branch, or agency of, or controlled by, the Chinese military;

  

	(10)	 Will not be used for any purpose related to a military end-use by the
People’s Republic of China; 

  

	(11)	 Will not be incorporated into a military item; 

 

	(12)	 Will not be used to operate, install, maintain, repair, overhaul, or refurbish a military item;

  

	(13)	 Will not be used in the design (including design research, analyses, concepts, configuration design,
integration design), pilot production schemes, assembly and testing of prototypes, or layouts related to a military item; 

  

	(14)	 Will not be used in the production of a military item, including product engineering, manufacturing,
integration assembly, mounting, testing, assembly, inspection, and quality assurance; 

  

	(15)	 Will not be deployed as a military item, including placed in battle formation or appropriate strategic
position; and 

  

	(16)	 In the event there are additions or changes to the information provided above, MTU shall provide the new
information to Contrail, in writing, with the order that will be thereby affected. 

  

			
	37

 Appendix H – Open Item List 

 

									
	 1
	  	Engine Certification	  	Y*	  	Signed by Certifying Staff minimum EASA F/FAA 8130-3; verify with customer if other certification required CAAC, ANAC	  	FAA 8130-3, LPT Stage 3 Blade blend repair: No OEM reference (CDR) available
					
	 2
	  	Carry Forward sheet/items	  	N	  	Verify if there are any open items (post blend re-inspection, etc.)	  	No carry forward sheet provided
					
	 6
	  	Last operator S/A TAG	  	Y*	  	Stamped and Signed issued under local aviation authority	  	Last removed as unserviceable due to LPT Stage 3 blade findings. Engine repaired by AIM. China Airlines removal paperwork DFP available
					
	 7
	  	Last ground run test (MPA)	  	Y*	  	Stamped and Signed with calculated EGTM (not applicable for V2500) Data Sheet min. per AMM	  	AIM MPA runsheet available. TO EGTM calculation discrepancy. To be verified by AIM
					
	 11
	  	Last operator ECM data	  	Y*	  	Take-off Data: take-off EGTM Cruise Perf: Delta EGT; Delta FF Cruise Mechanical: Core Speed; Fan VIB; Core VIB; Oil press., Oil
temp.	  	Last 6 months China Airlines ECM data. TO EGTM average approx. 25°C- 26°C N1 vib front average approx. 0.65 N2 vib front average approx. Below 0.1 No Oil Temperature/Pressure data available
					
	 14
	  	Ship loose parts & Bypack parts	  	N	  	Loose parts are certified?	  	Verify if loose parts are attached to engine or stand—DO NOT ACCEPT LOOSE PART(FO-SH 485), if yes try to store loose parts at MTE to not deliver loose parts to
customer
					
	 15
	  	Missing part list	  	N	  		  	No missing parts list provided
					
	 17
	  	MPD (C- check) compliance status	  	Y*	  	AMM Reverence check	  	China Airlines MPD Task Summary Sheet available. 17 out of 26 required MPD tasks with no compliance history. Out of the remaining 9 MPD tasks there a 4 with overdue compliances.
					
	 23
	  	Preservation Bag details	  	N	  	P/N and S/N	  	No engine cover or bag available
					
	 24
	  	ECU (EEC) Software	  	Y*	  	Attention to software compatibility with sister engine (to be checked with operator)	  	Latest EEC Software SB 73-0219 is not embodied. Current EEC Software Status is SB
73-0204.

  

									
	 28
	  	 DER parts
	  	Y*	  		  	Several DER repaired parts installed per China Airlines DER statement
					
	 29
	  	 PMA parts
	  	Y*	  		  	Several PMA parts installed per China Airlines PMA statement

  
 39 

 Appendix I – Accessory Inventory issed by China Airlines dated 23 August, 2017

  

																	
		 	China Airlines	  	Engine Major Component List (LRU)	  		  		  	

 Type: CFM56-7B    S/N: 874771 

 

																							
	 NO.
	  	 Nomenclature
	  	 Part Number
	  	Serial Number	  	TSN	 	  	TSO	 	  	CSN	 	  	CSO	 
	1	  	ELEMENT - FIRE/OVERHEAT DETECTOR	  	8870-14	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	2	  	ELEMENT - FIRE/OVERHEAT DETECTOR	  	8870-14	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	3	  	ELEMENT - FIRE/OVERHEAT DETECTOR	  	8870-14	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	4	  	ELEMENT - FIRE/OVERHEAT DETECTOR	  	8870-14	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	5	  	ELEMENT - FIRE/OVERHEAT DETECTOR	  	8870-14	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	6	  	ELEMENT - FIRE/OVERHEAT DETECTOR	  	8870-14	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	7	  	ELEMENT - FIRE/OVERHEAT DETECTOR	  	8870-14	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	8	  	ELEMENT - FIRE/OVERHEAT DETECTOR	  	8870-14	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	9	  	HARNESS	  	325-027-303-0	  	CAL0001	  	 	44408.70	 	  	 	44408.70	 	  	 	19940	 	  	 	19940	 
	10	  	HARNESS	  	325-027-403-0	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	11	  	HARNESS-ENGINE CORE FIRE DETECTION LOOP B	  	325-027-605-0	  	YH350437-9	  	 	44642.70	 	  	 	44642.70	 	  	 	20030	 	  	 	20030	 
	12	  	HARNESS-ENGINE CORE FIRE DETECTION LOOP A	  	325-027-506-0	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	13	  	SENSOR-ENGINE ANTI-ICE PRESSURE	  	21SN41-52	  	W68217A	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	14	  	KIT - CFM56 QEC	  	654A0001-8006	  	874771	  	 	48734.70	 	  	 	48734.70	 	  	 	21475	 	  	 	21475	 
	15	  	HARNESS	  	325-026-701-0	  	YH320424-F	  	 	45271.70	 	  	 	15507.70	 	  	 	24361	 	  	 	6770	 
	16	  	HARNESS	  	325-029-908-0	  	YH315350H	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	17	  	HARNESS	  	325-026-90I-0	  	YH300-606-Y	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	18	  	HARNESS	  	325-026-801-0	  	7H326125-7	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	19	  	HARNESS	  	325-035-501-0	  	YH295617-2	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	20	  	HARNESS	  	325-015-001-0	  	YH302374-1	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	21	  	PUMP	  	828300-5	  	YA010331E
Photo taken	  	 	48499.70	 	  	 	19041.70	 	  	 	23298	 	  	 	8421	 
	22	  	NOZZLE	  	6840023EI8	  	PCY2167J	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	23	  	NOZZLE	  	6840023E18	  	PHC642P1	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	24	  	NOZZLE	  	6840023E18	  	PHC477L5	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	25	  	NOZZLE	  	6840023EI8	  	PHCN4639	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	26	  	NOZZLE	  	6840023E18	  	PCY9702C	  	 	44370.70	 	  	 	21288.70	 	  	 	19940	 	  	 	9344 	 
	27	  	NOZZLE	  	6840023EI8	  	PCY9700C	  	 	44370.70	 	  	 	21288.70	 	  	 	19940	 	  	 	9344	 

  

					
	TPR20	  	1/4	  	

																	
		 	China Airlines	  	Engine Major Component List (LRU)	  		  		  	

Type: CFM56-7B    S/N: 874771 

 

																							
	 NO.
	  	 Nomenclature
	  	 Part Number
	  	 Serial Number
	  	TSN	 	  	TSO	 	  	CSN	 	  	CSO	 
	28	  	NOZZLE	  	6840023E18	  	PCY9005J	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	29	  	NOZZLE	  	6840023E18	  	PCY2967K	  	 	55278.70	 	  	 	21288.70	 	  	 	15413	 	  	 	9344	 
	30	  	NOZZLE	  	6840023E18	  	PCY2953K	  	 	55278.70	 	  	 	21288.70	 	  	 	15413	 	  	 	9344	 
	31	  	NOZZLE	  	6840023E18	  	PCY2166J	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	32	  	NOZZLE	  	6840023E18	  	PCY2162J	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	33	  	NOZZLE	  	6840023E18	  	PCY2158J	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	34	  	NOZZLE	  	6840023E18	  	PCY2156J	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	35	  	NOZZLE	  	6840023E18	  	CSDAA859	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	36	  	NOZZLE	  	6840023E18	  	PCY2955K	  	 	55278.70	 	  	 	21288.70	 	  	 	15413	 	  	 	9344	 
	37	  	NOZZLE	  	6840023E18	  	PCY0292A	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	38	  	NOZZLE - FUEL LARGE	  	1317M47G16	  	PHCJJ383	  	 	45253.70	 	  	 	15507.70	 	  	 	15730	 	  	 	6770	 
	39	  	NOZZLE - FUEL LARGE	  	1317M47G16	  	PHCFN253	  	 	44642.70	 	  	 	44642.70	 	  	 	20030	 	  	 	20030	 
	40	  	NOZZLE - FUEL LARGE	  	6840023E16	  	PHCJP220	  	 	47581.70	 	  	 	21288.70	 	  	 	14091	 	  	 	9344	 
	41	  	NOZZLE - FUEL LARGE	  	6840023E16	  	PHCJP217	  	 	47581.70	 	  	 	21288.70	 	  	 	14091	 	  	 	9344	 
	42	  	COOLER - IDG OIL	  	340-403-102-0	  	YB910707-0	  	 	48913.70	 	  	 	19041.70	 	  	 	21407	 	  	 	8421	 
	43	  	SENSOR-PT25	  	RP236-00	  	YC067661-E	  	 	39820.70	 	  	 	39820.70	 	  	 	16949	 	  	 	16949	 
	44	  	HARNESS	  	325-025-202-0	  	YH237314	  	 	21288.70	 	  	 	21288.70	 	  	 	9344	 	  	 	9344	 
	45	  	HARNESS	  	325-034-802-0	  	YH240537-R	  	 	48306.70	 	  	 	48306.70	 	  	 	21983	 	  	 	21983	 
	46	  	HARNESS	  	325-035-003-0	  	YH220668-8	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	47	  	HARNESS	  	325-034-902-0	  	YH216086-8	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	48	  	HARNESS	  	325-025-702-0	  	YH653639-2	  	 	21288.70	 	  	 	21288.70	 	  	 	9344	 	  	 	9344	 
	49	  	HARNESS	  	325-025-803-0	  	YH230201-6	  	 	44370.70	 	  	 	21288.70	 	  	 	19940	 	  	 	9344	 
	50	  	HARNESS	  	325-027-701-0	  	YH245278-7	  	 	51513.70	 	  	 	51513.70	 	  	 	23555	 	  	 	23555	 
	51	  	HARNESS	  	325-025-401-0	  	YH250435-U	  	 	44642.30	 	  	 	44642.30	 	  	 	20381	 	  	 	20381	 
	52	  	SENSOR-T3	  	8TC19AANI	  	GDBD550C Photo taken	  	 	45271.70	 	  	 	45271.70	 	  	 	24361	 	  	 	24361	 
	53	  	STATOR-ALTERNATOR	  	87006-9	  	HTL19023 Photo taken	  	 	43310.70	 	  	 	15507.70	 	  	 	11673	 	  	 	6770	 
	54	  	ROTOR-ALTERNATOR	  	85465-2	  	HTLR732B	  	 	45520.70	 	  	 	15507.70	 	  	 	11656	 	  	 	6770	 

  

					
	TPR20	  	2/4	  	

																	
		 	China Airlines	  	Engine Major Component List (LRU)	  		  		  	

 Type: CFM56-7B     S/N: 874771 

 

																							
	 NO.
	  	 Nomenclature
	  	 Part Number
	  	 Serial Number
	  	TSN	 	  	TSO	 	  	CSN	 	  	CSO	 
	55	  	UNIT - HYDROMECHANICAL(HMU)	  	442369	  	BECW2016 Photo taken	  	 	37667.55	 	  	 	10473.55	 	  	 	16342	 	  	 	4579	 
	56	  	UNIT - ELECTRONIC ENGINE CONTROL	  	1853M33P06	  	LMDN5108 Photo taken	  	 	27690.70	 	  	 	27690.70	 	  	 	11774	 	  	 	11774	 
	57	  	TRANSMITTER-FUEL FLOW	  	1853M48P01	  	GDB9614L Photo taken	  	 	48913.70	 	  	 	48913.70	 	  	 	21407	 	  	 	21407	 
	58	  	SWITCH - FUEL FILTER DIFFERENTIALPRESS	  	QA07995	  	RA8-3208 Photo taken	  	 	613.30	 	  	 	613.30	 	  	 	272	 	  	 	272	 
	59	  	EXCITER - IGNITION	  	10-631045-2	  	UNJBY633 Photo taken	  	 	37298.70	 	  	 	37298.70	 	  	 	10569	 	  	 	10569	 
	60	  	EXCITER - IGNITION	  	10-631045-2	  	UNJAK737 Photo taken	  	 	42954.70	 	  	 	42954.70	 	  	 	11641	 	  	 	11641	 
	61	  	LEAD	  	9059110-1	  	UNJ11534	  	 	40084.70	 	  	 	15507.70	 	  	 	17077	 	  	 	6770	 
	62	  	LEAD	  	9059110-1	  	KG0392	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	63	  	VALVE - HPTACC	  	3291186-6	  	GRTG1697C Photo taken	  	 	44427.70	 	  	 	15507.70	 	  	 	19946	 	  	 	6770	 
	64	  	VALVE - LPTACC	  	340-402-003-0	  	YR010371-U Photo taken	  	 	44642.70	 	  	 	21560.70	 	  	 	20030	 	  	 	9434	 
	65	  	VALVE - TRANSIENT BLEED	  	3291390-1	  	GRTG4497 Photo taken	  	 	46691.70	 	  	 	15507.70	 	  	 	20445	 	  	 	6770	 
	66	  	ACTUATOR - VARIABLE STATOR VANE	  	1324M12P10	  	APMMD735 Photo taken	  	 	42785.70	 	  	 	16777.70	 	  	 	18753	 	  	 	6992	 
	67	  	ACTUATOR - VARIABLE STATOR VANE	  	1211313-010	  	APMML409 Photo taken	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	68	  	ACTUATOR - VARIABLE BLLED VALVE	  	1226400	  	YU024968-A Photo taken	  	 	39820.70.	 	  	 	39820.70	 	  	 	16949	 	  	 	16949	 
	69	  	ACTUATOR - VARIABLE BLLED VALVE	  	7074-300	  	YU04861-3 Photo taken	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	70	  	SENSOR-N1 SPEED	  	320-862-401-0	  	YJ187647-0 Photo taken	  	 	39820.70	 	  	 	39820.70	 	  	 	16949	 	  	 	16949	 
	71	  	SENSOR-N2 SPEED	  	320-549-004-0	  	YJ192145-P	  	 	47400.03	 	  	 	6011.39	 	  	 	15306	 	  	 	2635	 
	72	  	PROBE	  	TC296-04	  	YC076456-BR Photo taken	  	 	44481.30	 	  	 	5825.30	 	  	 	20138	 	  	 	2580	 
	73	  	PROBE	  	TC296-03	  	YC494300-H Photo taken	  	 	31133.70	 	  	 	31133.70	 	  	 	13253	 	  	 	13253	 
	74	  	PROBE	  	TC296-04	  	YC077934-PR	  	 	47641.70	 	  	 	47641.70	 	  	 	20803	 	  	 	20803	 
	75	  	PROBE	  	TC296-04	  	YC076673-BR Photo taken	  	 	49103.70	 	  	 	49103.70	 	  	 	22022	 	  	 	22022	 
	76	  	SENSOR	  	144-186-000-011	  	YV156641-F	  	 	39820.70	 	  	 	39820.70	 	  	 	16949	 	  	 	16949	 
	77	  	SENSOR	  	144-187-000-011	  	YV160151-7	  	 	45271.70	 	  	 	45271.70	 	  	 	24361	 	  	 	24361	 
	78	  	OIL TANK	  	41F5102	  	YT012632-P Photo taken	  	 	39820.70	 	  	 	39820.70	 	  	 	16949	 	  	 	16949	 
	79	  	LUBRICATIONUNIT	  	41F1005	  	YT005326-N Photo taken	  	 	48938.70	 	  	 	15507.70	 	  	 	21856	 	  	 	6770	 
	80	  	HEATER-SERVO FUEL	  	301-789-101-0	  	YB000520-W Photo taken	  	 	53912.70	 	  	 	15507.70	 	  	 	20768	 	  	 	6770	 
	81	  	EXCHANGER-MAIN OIL/FUEL HEAT	  	11-841193-4	  	YP027044-T Photo taken	  	 	53912.70	 	  	 	15507.70	 	  	 	20768	 	  	 	6770	 

  

					
	TPR20	  	3/4	  	

																	
		 	China Airlines	  	Engine Major Component List (LRU)	  		  		  	

 Type: CFM56-7B    S/N: 874771 

 

																							
	 NO.
	  	 Nomenclature
	  	 Part Number
	  	 Serial Number
	  	TSN	 	  	TSO	 	  	CSN	 	  	CSO	 
	82	  	FILTER	  	41F9003	  	YT122212-C Photo taken	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	83	  	TRANSMITTER - OIL SCAVENGE FILTER CLOG	  	QA07656ISS1	  	RX1-5176 Photo taken	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	84	  	SENSOR	  	8TJ146CFA1	  	YE012641-L Photo taken	  	 	39820.70	 	  	 	39820.70	 	  	 	16949	 	  	 	16949	 
	85	  	SENSOR	  	APTE-8A-2000-7BARI	  	K-19731 Photo taken	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	86	  	PROBE	  	RP238-00	  	YC097870-R Photo taken	  	 	39820.70	 	  	 	39820.70	 	  	 	16949	 	  	 	16949	 
	87	  	STARTER	  	3505945-10	  	GRTA2383C Photo taken	  	 	6495.87	 	  	 	6495.87	 	  	 	2861	 	  	 	2861	 

  

											
		 	 E&M Quality Assurance Division
	 	  	  	Prepared By	  	 /s/ Jo Fj
	  	
				 	 	
		 	China Airlines	 		  	Reviewed By	  	 /s/ H.C. Chong 
	  	AUG 23 2017

  

					
	TPR20	  	4/4	  	

																	
		 	China Airlines	  	Engine Major Component List (QEC)	  		  		  	

 Type: CFM56-7B    S/N: 874771 

 

																							
	 NO.
	  	 Nomenclature
	  	 Part Number
	  	 Serial Number
	  	TSN	 	  	TSO	 	  	CSN	 	  	CSO	 
	1	  	GENERATOR-INTEGRATED DRIVE	  	761574B	  	2649
Photo taken	  	 	36173.70	 	  	 	36173.70	 	  	 	15668	 	  	 	15668	 
	2	  	COOLER - IDG AIR/OIL	  	UA538551-3	  	0319	  	 	44650.70	 	  	 	15507.70	 	  	 	20035	 	  	 	6770	 
	3	  	RING-IDG QUICK ATTACH/DETACH	  	762246	  	0695	  	 	48777.70	 	  	 	48777.70	 	  	 	21493	 	  	 	21493	 
	4	  	DETECTOR - ENGINE CORE AFTER FIRE	  	902862	  	1513	  	 	44924.70	 	  	 	44924.70	 	  	 	24253	 	  	 	24253	 
	5	  	DETECTOR - ENGINE FAN LOWER FIRE	  	902016-01	  	1933	  	 	47966.70	 	  	 	47966.70	 	  	 	20845	 	  	 	20845	 
	6	  	DETECTOR - ENGINE CORE RIGHT	  	902018-01	  	1446
Photo taken	  	 	44650.70	 	  	 	44650.70	 	  	 	20035	 	  	 	20035	 
	7	  	DETECTOR - ENGINE FAN UPPER F1RE	  	902864	  	9642	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	8	  	PUMP - ENGINE DRIVE HYDRAULIC	  	66087	  	 K0650
 Photo taken
	  	 	43659.70	 	  	 	43659.70	 	  	 	23243	 	  	 	23243	 
	9	  	HOSE ASSY	  	S332A210-21	  	2941	  	 	41499.70	 	  	 	41499.70	 	  	 	17848	 	  	 	17848	 
	10	  	HOSE ASSY	  	155016-20-11	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	11	  	HOSE ASSY	  	155006-06-23	  	XXX	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	12	  	VALVE - GROUND THERMAL ANTI - ICE SOLENOID	  	320548-2	  	4028
Photo taken	  	 	30455.89	 	  	 	10810.04	 	  	 	12837	 	  	 	4700	 
	13	  	VALVE - ENGINE COWL TAI	  	3215618-4	  	402C
Photo taken	  	 	43401.70	 	  	 	43401.70	 	  	 	19349	 	  	 	19349	 
	14	  	CHECK VALVE - BLEED AIR 5TH- STAGE	  	3202222-l	  	6362 8303 installed	  	 	49175.59	 	  	 	19785.59	 	  	 	21381	 	  	 	8710	 
	15	  	REGULATOR- BLEED AIR	  	107492-6	  	6182	  	 	41468.70	 	  	 	41468.70	 	  	 	18226	 	  	 	18226	 
	16	  	VALVE - PRESSURE REGULATING AND SHUTOFF	  	3214552-6	  	4222
Photo taken	  	 	45505.04	 	  	 	45505.04	 	  	 	23825	 	  	 	23825	 
	17	  	VALVE - HIGH STAGE	  	3214446-4	  	7653
Photo taken	  	 	39586.70	 	  	 	39586.70	 	  	 	17005	 	  	 	17005	 
	18	  	REGULATOR - HIGH STAGE	  	107484-7 3172347-1	  	6640 59364 installed	  	 	34211.70	 	  	 	34211.70	 	  	 	14182	 	  	 	14182	 
	19	  	STRUT	  	332A2371-3	  	222-4
Photo taken	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	20	  	VALVE	  	3289562-5	  	14750
Photo taken	  	 	12474.54	 	  	 	12474.54	 	  	 	5557	 	  	 	5557	 
	14	  	KIT - CFM56 QEC	  	654A0001-8006	  	874771	  	 	48734.70	 	  	 	48734.70	 	  	 	21475	 	  	 	21475	 
	15	  	HARNESS	  	325-026-701-0	  	YH320424-F	  	 	45271.70	 	  	 	15507.70	 	  	 	24361	 	  	 	6770	 
	16	  	HARNESS	  	325-029-908-0	  	YH315350H	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	17	  	HARNESS	  	325-026-901-0	  	YH300-606-Y	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	18	  	HARNESS	  	325-026-801-0	  	7H326125-7	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	19	  	HARNESS	  	325-035-501-0	  	YH295617-2	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	20	  	HARNESS	  	325-015-001-0	  	YH305374-1	  	 	15507.70	 	  	 	15507.70	 	  	 	6770	 	  	 	6770	 
	21	  	MOUNT ASSY - ENGINE FWD	  	310A2020-5	  	276309E	  	 	44378.70	 	  	 	15507.70	 	  	 	19945	 	  	 	6770	 

  

					
	TPR20	  	1/2	  	

																	
		 	China Airlines	  	Engine Major Component List (QEC)	  		  		  	

 Type: CFM56-7B    S/N: 874771 

 

																							
	 NO.
	  	 Nomenclature
	  	 Part Number
	  	 Serial Number
	  	TSN	 	  	TSO	 	  	CSN	 	  	CSO	 
	22	  	LINK ASSY - LEFT THRUST	  	310A2041-9	  	CAL0001	  	 	46731.70	 	  	 	15507.70	 	  	 	20016	 	  	 	6770	 
	23	  	LINK ASSY - RIGIIT THRUST	  	310A2041-10	  	CAL891132	  	 	39820.70	 	  	 	15507.70	 	  	 	16949	 	  	 	6770	 
	24	  	MOUNT ASSY - ENGINE AFT	  	310A2030-11	  	B639 Photo taken	  	 	48734.70	 	  	 	15507.70	 	  	 	21475	 	  	 	6770	 
	25	  	SENSOR - Tl2	  	RP235-00	  	F2276 Photo taken	  	 	39820.70	 	  	 	39820.70	 	  	 	16949	 	  	 	16949	 
	26	  	PLUG - EXHAUST PRIMARY	  	314A2620-1	  	0610 Photo taken	  	 	48734.70	 	  	 	48734.70	 	  	 	21475	 	  	 	21475	 
	27	  	NOZZLE - EXHAUST PRIMARY	  	314A2610-1	  	0610 Photo taken	  	 	48734.70	 	  	 	48734.70	 	  	 	21475	 	  	 	21475	 
	28	  	VALVE - START	  	3289630-2	  	5626 Photo taken	  	 	40752.70	 	  	 	40752.70	 	  	 	18276	 	  	 	18276	 

  

											
		 	 E&M Quality Assurance Division
	 	  	  	Prepared By	  	 /s/ Jo Fj
	  	
				 	 	
		 	China Airlines	 		  	Reviewed By	  	 /s/ H.C Chong
	  	AUG 23 2017

  

					
	TPR20	  	2/2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00289-of-00352.parquet"}]]