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SYNTHETIC AIRCRAFT LEASE

Aircraft Lease Agreement

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POMEROY IT SOLUTIONS INC | SUNTRUST LEASING CORPORATION

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Title: SYNTHETIC AIRCRAFT LEASE
Governing Law: Maryland     Date: 4/17/2006
Industry: CMPTRS    

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SYNTHETIC AIRCRAFT LEASE

                            SYNTHETIC AIRCRAFT LEASE
                                  (S/N 258753)

                         DATED AS OF DECEMBER,      2005
                                               ----

                                     BETWEEN

                          SUNTRUST LEASING CORPORATION
                                    AS LESSOR

                                       AND

                   POMEROY IT SOLUTIONS SALES COMPANY, INC. AND
                   POMEROY SELECT INTEGRATION SOLUTIONS, INC.
                                  AS CO-LESSEES




THIS IS COUNTERPART NO. __ OF A TOTAL OF 4 COUNTERPARTS.  ONLY COUNTERPART NO. 1
SHALL  BE  CONSIDERED  CHATTEL PAPER FOR PURPOSES OF THE UNIFORM COMMERCIAL CODE
AND  A  SECURITY INTEREST MAY BE PERFECTED ONLY BY POSSESSION OF COUNTERPART NO.
1.


<PAGE>
<TABLE>
<CAPTION>
SUNTRUST  LEASING  CORPORATION
--------------------------------------------------------------------------------
                                                               TABLE OF CONTENTS

                                                                   PAGE
                                                                   ----
<S>          <C>                                                   <C>
Section 1.   Lease of Aircraft . . . . . . . . . . . . . . . . . .    1
Section 2.   Closing Conditions . . . . . . . . . . . . . . . . .     1
Section 3.   Term and Rent . . . . . . . . . . . . . . . . . . . .    1
Section 4.   Title; Quiet Enjoyment . . . . . . . . . . . . . . . .   2
Section 5.   Disclaimer and Assignment of Warranties . . . . . . .    2
Section 6.   Representations, Warranties and Agreements of Lessee .   2
Section 7.   Net Lease . . . . . . . . . . . . . . . . . . . . . .    3
Section 8.   Taxes . . . . . . . . . . . . . . . . . . . . . . . .    3
Section 9.   Compliance, Use and Maintenance . . . . . . . . . . .    4
Section 10.  Loss or Damage . . . . . . . . . . . . . . . . . . .     6
Section 11.  Indemnification . . . . . . . . . . . . . . . . . . .    8
Section 12.  Assignment and Sublease . . . . . . . . . . . . . . .    8
Section 13.  Events Of Default and Remedies . . . . . . . . . . .    10
Section 14.  Notices, Reports, Further Assurances and Inspections .  13
Section 15.  Transaction Expenses. . . . . . . . . . . . . . . . .   14
Section 16.  Miscellaneous . . . . . . . . . . . . . . . . . . . .   14
Section 17.  Truth In Leasing . . . . . . . . . . . . . . . . . .    16
</TABLE>

EXHIBIT A - Definitions

Insurance Addendum
Closing Terms Addendum
Option Addendum
Return Addendum

Lease Supplement


                                        i
<PAGE>
SUNTRUST  LEASING  CORPORATION
--------------------------------------------------------------------------------
                                                     AIRCRAFT LEASE (S/N 258753)

     THIS AIRCRAFT LEASE (S/N 258753) (together  with all Supplements, Exhibits,
Riders  and Addenda hereto, the "Lease") is made and entered into as of December
                                 -----
    ,  2005, by and between SUNTRUST LEASING CORPORATION, a Virginia corporation
----
("Lessor"), and  POMEROY IT SOLUTIONS SALES COMPANY, INC. a Delaware corporation
  ------
("Sales"),  and  POMEROY  SELECT  INTEGRATION  SOLUTIONS,  INC.,  a  Delaware
corporation  ("Integration"),  (Sales  and Integration are jointly and severally
               -----------
liable  hereunder as co-obligors, as more particularly provided in Section 17 of
this  Lease,  and  are  each  referred  to  individually  as  a  "Lessee"  and
                                                                  ------
collectively,  the  "Lessees").  Certain capitalized terms as used in this Lease
                     -------
are  defined  in  Exhibit A hereto, and such definitions are incorporated herein
                  ---------
and made a part hereof as though set forth in full herein.

SECTION 1.   LEASE OF AIRCRAFT.  Subject to the terms and conditions provided in
             -----------------
this Lease, Lessor agrees to lease the Aircraft to Lessees, and Lessees agree to
lease  the  Aircraft  from  Lessor.  Lessor  hereby appoints Lessees as Lessor's
agent  for  the  sole  and limited purpose of accepting delivery of the Aircraft
from  the  Supplier.  The  execution  by  Lessees  of  the Lease Supplement will
evidence  that the Aircraft is leased under, and is subject to all of the terms,
provisions  and  conditions  of,  this  Lease and shall constitute each Lessee's
unconditional  and  irrevocable  acceptance  of the Aircraft for all purposes of
this  Lease.

SECTION  2.  CLOSING CONDITIONS.  Lessor's  obligations to purchase the Aircraft
              ------------------
from the Supplier and to lease the Aircraft to Lessees shall be conditioned upon
the  satisfaction  of  all  of  the  following  conditions:

     (a)     Lessor  receives  the Required Documents and Purchase Documents, in
form  and  substance satisfactory to Lessor, at least one (1) Business Day prior
to  the  anticipated  closing  date;

     (b)     all  representations  and  warranties  in this Lease, including the
Lease Supplement, are true and correct;

     (c)     Lessees accept the Aircraft from Supplier on Lessor's behalf, under
the Purchase Documents and under this Lease, on the Acceptance Date;

     (d)     FAA  Counsel  confirms to Lessor that (A) it has received in escrow
all  of  the  FAA  Documents,  and  (B)  upon  filing the FAA Documents, (1) the
Airframe  will be registered in the name of Lessees, (2) the Aircraft (including
the  Airframe  and Engines) will be free and clear of all Liens, other than this
Lease,  and  (3)  this  Lease  creates a duly perfected security interest in the
Aircraft  in  favor  of  Lessor;  and

     (e)     each  Lessee authorizes (A) the release from escrow of all Required
Documents  and FAA Documents held by Lessor or its FAA Counsel or other counsel,
and (B) Lessor or FAA Counsel to file the FAA Documents and any other filings at
the  FAA  and  any other applicable filing offices; provided, such authorization
shall  be  deemed  to have been automatically made by Lessees (whether or not so
confirmed)  immediately upon the confirmed receipt by each Lessee, Seller or any
other  Person (as directed in the pay proceeds letter executed by either or both
of  the  Lessees  on  or  before  the date hereof) of the funds constituting the
Lessor's  Cost.

     Each Lessee acknowledges and agrees that (i) any advance of funds by Lessor
prior  to  the  satisfaction  of  all  of  the  preceding  conditions  shall not
constitute  a waiver by Lessor of any such condition, and (ii) each Lessee shall
be  irrevocably  obligated  to  satisfy  all of such conditions prior to the FAA
filing deadline on the day on which such funds are received.

SECTION  3.   TERM  AND  RENT.
              ---------------

     (a)     Term.  The  lease  of the Aircraft to Lessees shall commence on the
             ----
Acceptance  Date  and  end  on  the  Expiration Date, unless extended or earlier
terminated or cancelled pursuant to this Lease.

     (b)     Rent.  Lessees shall pay to Lessor the following daily and periodic
             ----
rent amounts ("Basic Rent") (i) on the First Basic Rent Date, an amount equal to
               ----------
the Lessor's Cost multiplied by the Daily Rent Percentage, for each day starting
with  the  Acceptance  Date, to but excluding the Rent Commencement Date ("Daily
                                                                           -----
Rent"),  and  (ii)  on  the  First  Basic  Rent Date and on each Basic Rent Date
----
following  that  date,  an  amount  equal to the Lessor's Cost multiplied by the
applicable  Basic  Rent  Percentage  set  forth  on  Schedule  No.  2A  for  the
corresponding  Basic  Rent


<PAGE>
SUNTRUST  LEASING  CORPORATION
--------------------------------------------------------------------------------

number  corresponding  to  such  Basic  Rent  Date.  Lessees  shall also pay the
following  amounts  as  "Supplemental  Rent"  (together with all Basic Rent, the
                         ------------------
"Rent"):  (i)  as and when due, any other amount that any Lessee is obligated to
 ----
pay  under  this Lease to Lessor or others (including, Casualty Value and/or any
amounts  due  pursuant  to  any  Addendum),  (ii)  interest accruing at the Late
Payment  Rate  on  any  Rent  not  paid  when  due,  until  paid,  and (iii) the
Administrative  Charge  with  respect  to  any  Rent  not  paid  when  due  (as
compensation  to Lessor for the expenses attributable to any Lessee's failure to
pay,  and not as a penalty).  Lessees' obligation to pay Supplemental Rent shall
survive  the  expiration,  cancellation or other termination of this Lease.  All
payments  of  Rent  shall  be  made  to  Lessor, in United States Dollars ("U.S.
                                                                            ----
Dollars"),  in  immediately available funds on the date payable hereunder at the
-------
address  designated  by  Lessor  for  payment, or by wire transfer to an account
specified  by Lessor, or at such other address or to such other Person as Lessor
may  direct  by  notice  in  writing  to  Lessees.

SECTION  4.   TITLE;  QUIET ENJOYMENT.  Each Lessee acknowledges and agrees that
              -----------------------
upon  Lessor's  acquiring  the Aircraft on the Acceptance Date, and Lessees' and
Lessor's  execution and delivery of the Lease Supplement, Lessor shall be deemed
to  have  a  validly  perfected,  first  priority  security interest against the
Aircraft, and each Lessee's right, title or interest in or to the Aircraft shall
at  all  times  be  subject  to  the terms of this Lease, unless and until it is
terminated  in  accordance  with the express provisions hereof.  Lessor warrants
that  during  the  Term,  so  long as no Event of Default has occurred, Lessees'
possession  and  use  of  the Aircraft shall not be interfered with by Lessor or
anyone  rightfully  claiming an interest through Lessor.  The preceding warranty
is  in lieu of all other warranties by Lessor, whether written, oral or implied,
with  respect to this Lease or the Aircraft, and without limiting the provisions
of  Section  7,  any  actual or purported breach of this warranty shall not give
rise  to  any  Abatement, and Lessor shall not be deemed to have modified in any
respect  the  obligations of any Lessee pursuant to Section 7, which obligations
are  and  shall  remain absolute, irrevocable and unconditional under all events
and  circumstances  whatsoever.

SECTION  5.   DISCLAIMER AND ASSIGNMENT OF WARRANTIES.
              ---------------------------------------

     (a)     LESSOR  SHALL NOT BE DEEMED TO HAVE MADE, AND HEREBY DISCLAIMS, ANY
REPRESENTATION  OR  WARRANTY,  EITHER  EXPRESS  OR  IMPLIED, AS TO THE AIRCRAFT,
INCLUDING  ANY  ENGINE, PART OR RECORD, OR ANY MATTER WHATSOEVER, INCLUDING, THE
AIRCRAFT'S  DESIGN,  CONDITION,  MERCHANTABILITY,  FITNESS  FOR  ANY  PARTICULAR
PURPOSE,  TITLE,  ABSENCE  OF ANY PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT OR
LATENT  DEFECT  (WHETHER  OR  NOT DISCOVERABLE BY ANY LESSEE), COMPLIANCE OF THE
AIRCRAFT  WITH  ANY APPLICABLE LAW, CONFORMITY OF THE AIRCRAFT TO THE PROVISIONS
AND  SPECIFICATIONS  OF ANY PURCHASE DOCUMENT OR TO THE DESCRIPTION SET FORTH IN
THIS LEASE, OR ANY INTERFERENCE OR INFRINGEMENT (EXCEPT AS EXPRESSLY PROVIDED IN
SECTION 4), OR ARISING FROM ANY DEFECTS OR FROM ANY COURSE OF DEALING, COURSE OF
PERFORMANCE,  OR  USAGE  OF TRADE, NOR SHALL LESSOR BE LIABLE, FOR ANY INDIRECT,
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES OR FOR STRICT OR ABSOLUTE LIABILITY
IN  TORT;  AND  EACH  LESSEE  HEREBY WAIVES ANY CLAIMS ARISING OUT OF ANY OF THE
FOREGOING.  Without  limiting  the  foregoing, Lessor will not be responsible to
any  Lessee  or any other Person with respect to, and each Lessee agrees to bear
sole  responsibility  for,  any  risk  or  other  matter  that is the subject of
Lessor's disclaimer.

     (b)     So  long  as no Event of Default has occurred, Lessees may exercise
Lessor's  rights,  if  any,  under any warranty of Manufacturer or Supplier with
respect  to the Aircraft.  Lessees' exercise of such rights shall be at its sole
cost and risk, shall not result in any prejudice to Lessor, and may be exercised
only during the Term.  Lessees shall not attempt to enforce any such warranty by
legal proceeding without Lessor's prior written approval.

SECTION 6.   REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF LESSEES.  Each Lessee
             -----------------------------------------------------
represents,  warrants,  and  agrees  (for  itself and as to the other Lessee) as
follows:

     (a)     Due  Organization,  Name,  Organizational Number, Etc.  Each Lessee
             ------------------------------------------------------
is,  and will remain, a corporation duly organized and existing in good standing
under  the  laws  of  the State of Delaware and is duly qualified to do business
wherever  necessary  to  perform its obligations under this Lease, including the
jurisdiction  of  the Primary Hangar Location. Each Lessee's exact legal name is
as  shown  in  the  caption  of  this  Lease;  each  Lessee's  organizational
identification  number  and  the  address of such Lessee's mail, chief executive
offices  and  principal  place  of business are all as respectively set forth in
Schedule  No.  2.  Each  Lessee  agrees  that  it  shall  not  change  its name,
organizational  number  or  any  such  address  without  prior written notice to
Lessor.  Within  the  previous  six  (6)  years


                                                                               2
<PAGE>
SUNTRUST  LEASING  CORPORATION
--------------------------------------------------------------------------------

neither Lessee has changed its name, done business under any other name, changed
its  chief  place  of  business from its present location, or merged or been the
surviving entity of any merger, except as disclosed to Lessor in writing.

     (b)     Due  Authorization;  No  Violation.  This  Lease  has  been  duly
             ----------------------------------
authorized  by  all  necessary action on the part of each Lessee consistent with
its respective form of organization, does not require the approval of, or giving
notice  to,  any  governmental authority and does not contravene or constitute a
default  under  any  Applicable Law, certificate or articles of incorporation or
organization  or  by-laws  or  partnership  certificate  or  agreement,  or  any
agreement,  indenture, or other instrument to which such Lessee is a party or by
which  it  may  be  bound.

     (c)     Enforceability.  This Lease has been duly executed and delivered by
             --------------
authorized  representatives  of  each  Lessee,  respectively,  and constitutes a
legal,  valid  and  binding  obligation  of each Lessee enforceable against such
Lessee  in  accordance with its terms, except to the extent that the enforcement
of  remedies may be limited under applicable bankruptcy and insolvency laws, and
the equitable discretion of any court of competent jurisdiction.

     (d)     Litigation.  There  are  no  proceedings  pending or, so far as the
             ----------
officers,  managers,  or  members  of  any  Lessee  know,  threatened against or
affecting  any  Lessee  or  any of its property before any court, administrative
officer  or  administrative  agency  that  could  impair  Lessor's  title to the
Aircraft,  or  that, if decided adversely, could materially affect the financial
condition  or operations of such Lessee or the ability of such Lessee to perform
its  obligations  under  this  Lease.  Neither  Lessee has pending claims or any
knowledge of any facts upon which a future claim may be based, against any prior
owner,  the  Manufacturer  or Supplier of the Aircraft, or of any Engine or part
thereof  for  breach  of  warranty  or  otherwise.

     (e)     Good  Title.  At  all times during the Term, the records of the FAA
             -----------
Aircraft  Registry  shall  reflect  that Lessees are the registered owner of the
Airframe  and that Lessor has a duly perfected, first priority security interest
in  the  Aircraft.

     (f)     No  Competing  Lienholders.  No  Lien  exists,  or  will  hereafter
             --------------------------
attach,  against the Aircraft, the Rent or any other rights under this Lease, or
any  Collateral,  or any interest of either Lessee or Lessor therein (other than
any  Lessor's  Liens),  pursuant  to  any mortgage, conditional sale or security
agreement  or  other  agreement  to  which  either Lessee or any Person claiming
through  such  Lessee  is a party, nor will any of the transactions contemplated
under this Lease constitute a breach of any provision of any such agreement.

SECTION 7.   NET LEASE.  This Lease is a net lease, and each Lessee acknowledges
             ---------
and  agrees  that (a) Lessees' joint and several obligation to pay, and Lessor's
right  to  receive,  all  Rent  in accordance with this Lease shall be absolute,
irrevocable, independent and unconditional and shall not be subject to (and each
Lessee hereby waives and agrees not to assert) any abatement, reduction, setoff,
defense,  counterclaim or recoupment (collectively, "Abatements") for any reason
                                                     ----------
or  under  any circumstance whatsoever as to any such Rent, and without limiting
the foregoing, each Lessee also waives any and all existing and future claims to
any  Abatement  against  or  as  to  such  Rent,  (b)  it will pay all such Rent
regardless  of any Abatement, and (c) this Lease, and Lessees' joint and several
payment  and  other obligations hereunder, are non-cancelable and non-terminable
by  any  Lessee  (except  as  expressly  provided  in  any  Addendum).

SECTION  8.   TAXES.
              -----

     (a)     Indemnity.  Lessees  agree to: (1) (i) if permitted by law, file in
             ---------
Lessees'  own  names or on Lessor's behalf, directly with all appropriate taxing
authorities  all  registrations,  declarations,  returns,  inventories and other
documentation with respect to any personal property taxes (or any other taxes in
the  nature  of  or imposed in lieu of property taxes) due or to become due with
respect  to  the  Aircraft,  and  if not so permitted by law, to promptly notify
Lessor  and  provide  it  with  all  information required in order for Lessor to
timely file all such declarations, returns, inventories, or other documentation,
and  (ii)  pay on or before the date when due all such taxes assessed, billed or
otherwise  payable  with  respect  to  the  Aircraft directly to the appropriate
taxing  authorities,  (2) (i) pay when due, and (ii) defend and indemnify Lessor
on  a  net after-tax basis against liability for all license and/or registration
fees,  assessments, and sales, use, property, excise, privilege, value added and
other  taxes  (including  any related interest or penalties) or other charges or
fees  now  or  hereafter  imposed  by  any  governmental body or agency upon the
Aircraft  or  with  respect  to  landing,  airport use, manufacturing, ordering,
shipment, purchase, ownership, delivery, installation, leasing (pursuant to this
Lease,  any  sublease,  or  otherwise),  chartering, operation, possession, use,


                                                                               3
<PAGE>
SUNTRUST  LEASING  CORPORATION
--------------------------------------------------------------------------------

return,  or  other  disposition  thereof  or the Rent or other rentals hereunder
(other  than  taxes  on or measured solely by the net income of Lessor), and (3)
defend  and  indemnify  Lessor against any penalties, charges, interest or costs
imposed  with  respect  to any items referred to in (1) and (2) above (the items
referred  to  in  (1),  (2),  and  (3)  above  being  referred  to  herein  as
"Impositions").  Any  Impositions  that are not paid when due and which are paid
by  Lessor  shall,  at  Lessor's  option, become immediately due from Lessees to
Lessor.  Notwithstanding  the foregoing, each Lessee shall pay, indemnify Lessor
for,  and  hold  Lessor  harmless on a net after-tax basis from and against, any
Imposition  on or measured by the net income of Lessor imposed against Lessor by
any  local  or  foreign government or other local or foreign taxing authority if
and  to  the  extent that Lessor would not have incurred such Imposition but for
the  operation  or presence of the Aircraft within the jurisdiction imposing it.

     (b)     Survival.  Lessees'  obligations under this Section 8 shall survive
             --------
any expiration, cancellation or other termination of this Lease.

     (c)     Tax  Benefits.  For  income tax purposes, Lessor will treat Lessees
             -------------
as the owner of the Aircraft; however, Lessor shall in no event be liable to any
Lessee  if  any Lessee fails to secure any of the tax benefits available to such
Lessee as co-owner of the Aircraft for such income tax purposes.

SECTION  9.   COMPLIANCE, USE AND MAINTENANCE.
              -------------------------------

     (a)     Compliance  and  Use.  On  the  Acceptance  Date,  and at all times
             --------------------
thereafter  until  the  Aircraft  is  returned to Lessor pursuant to this Lease,
Lessees  shall  cause  the Aircraft to be and remain duly registered in Lessees'
names  at  the  FAA,  in  accordance  with the Transportation Code.  Each Lessee
agrees  to  comply  with  all  Applicable  Law  related to this Lease and/or the
Aircraft,  including  its  operation,  maintenance,  airworthiness,  safety  and
security.  Each  Lessee  will  operate the Aircraft under and in compliance with
Part 91 of the FARs, for purposes that are incidental to such Lessee's business,
and  in a manner that is consistent with the transactions hereunder being deemed
commercial  (and  not  consumer)  transactions  under  Applicable  Law.  Unless
otherwise expressly permitted hereunder, Lessees shall not operate or permit the
Aircraft  to  be operated for air taxi operations or otherwise under Part 135 of
the  FARs.  The  Aircraft  shall be used solely in a passenger configuration for
which  Lessees  are  duly  authorized  by  the FAA.  Lessees will not operate or
permit  the  Aircraft  to  be  operated  in  any  manner  at  any time or in any
geographic  area when or where insurance required by the provisions hereof shall
not  be  in  effect.  Unless otherwise expressly permitted by Section 12 of this
Lease, Lessees shall (i) retain operational control of the Aircraft at all times
from  the  Acceptance  Date until returning the Aircraft in accordance with this
Lease; and (ii) shall base the Aircraft at the Primary Hangar Location set forth
in  Schedule  No.  2; provided, however, that the Primary Hangar Location may be
                      --------  -------
changed  to  another location within the Continental United States upon at least
thirty  (30)  days'  prior  written notice to Lessor.  The Aircraft will, at all
times  be  operated  by  duly  qualified pilots having (a) the required FAA type
rating  for  the  Aircraft, (b) the required FAA pilot certificates and ratings,
(c)  a  valid  FAA  Medical Certificate, (d) satisfied all security requirements
imposed  by  any  governmental authority having jurisdiction and (e) met any and
all  requirements  established  and specified by (i) the FAA, the Transportation
Security Administration and any other applicable governmental authority and (ii)
the  insurance  policies  required  under  this  Lease.

     (b)     Use  Outside  of  U.S.  The Aircraft shall not be operated, used or
             ----------------------
located  outside the Continental U.S. except that it may be flown temporarily to
any  country  in the world for any purpose expressly permitted under this Lease.
Notwithstanding  the  foregoing, the Aircraft shall not be flown, operated, used
or  located  in, to or over any such country or area (temporarily or otherwise),
(i)  which is excluded from the required insurance coverages, or would otherwise
cause  any  Lessee  to  be  in  breach  of  the  insurance requirements or other
provisions  of  this Lease, (ii) with which the U.S. does not maintain favorable
diplomatic relations, (iii) in any area of recognized or threatened hostilities,
or  (iv)  in  violation  of any Applicable Law, including any U.S. law or United
Nations  Security  Council  Directive.

     (c)     Maintenance  and  Operation.  During  the  Term,  Lessees shall (i)
             ---------------------------
maintain,  inspect,  service,  repair,  overhaul  and test the Airframe and each
Engine  and  any  APU  in  accordance  with  all  Maintenance  Requirements, all
Applicable  Law, and, if more stringent, prevailing industry standards, and (ii)
maintain (in the English language) all Records in accordance with the Applicable
Law  and  all  Maintenance  Requirements, and as required under this Lease.  All
maintenance  procedures shall be performed in accordance with all Applicable Law
and  by  properly  trained,  licensed,  and  certified  maintenance  sources and
maintenance  personnel  utilizing  replacement parts approved by the FAA and the
Manufacturer,  so as to keep the Airframe and each Engine, any APU and each Part
in  good  operating


                                                                               4
<PAGE>
SUNTRUST  LEASING  CORPORATION
--------------------------------------------------------------------------------

condition,  ordinary  wear  and  tear,  from  proper use alone, excepted, and to
enable  the  airworthiness  certificate  for  the  Aircraft  to  be  continually
maintained.  Without  limiting  the  foregoing,  Lessees  shall  comply with all
mandatory  service  bulletins and airworthiness directives by causing compliance
to  such  bulletins  and/or  directives  to  be  completed  through  corrective
modification  in  lieu  of  operating  manual  restrictions.

     (d)     Loaner  Engines.  In  the  event  any  Engine  is  damaged,  being
             ---------------
inspected,  repaired  or  overhauled and provided no Event of Default or Default
has  occurred  and  is  continuing,  any  Lessee, at its option, may temporarily
substitute  another  engine  of  the  same  make  and  model as the Engine being
repaired or overhauled (any such substitute engine being hereinafter referred to
as a "Loaner Engine") during the period of such repair or overhaul, and provided
      -------------
further  (i)  installation  of  the  Loaner Engine is performed by a maintenance
facility  certified  by  the FAA and manufacturer with respect to an aircraft of
this  type,  (ii)  the  Loaner  Engine is removed and the repaired or overhauled
original  Engine  is reinstalled on the Airframe promptly upon completion of the
repair  or  overhaul  but in no event later than the earlier of ninety (90) days
after  removal,  or  the expiration, cancellation or earlier termination of this
Lease,  and  (iii)  the  Loaner  Engine is free and clear of any Lien that might
impair  Lessor's  rights  or  interests  in  the  Aircraft  and is maintained in
accordance  herewith.

     (e)     Additions,  Alterations and Replacement Parts.  Lessees may install
             ---------------------------------------------
on  the Aircraft any additional accessory, device or equipment ("Additions") but
                                                                 ---------
only  if such Additions (i) are ancillary to the Aircraft; (ii) are not required
to  render the Aircraft complete for its intended use by Lessees; (iii) will not
impair  the  originally intended function or use of the Aircraft or diminish the
value  of  the  same;  and  (iv) can be readily removed without causing material
damage  to  the  Aircraft.  Each Addition not removed prior to the return of the
Aircraft  to  Lessor  shall,  upon such return, immediately become a part of the
Aircraft  for  all purposes of this Lease, and subject to all of Lessor's rights
hereunder  without  any  payment by, or any cost or expense to, Lessor.  Lessees
shall  make  any alteration or modification ("Alterations") to the Aircraft that
                                              -----------
may  at  any  time  during  the  Term  be  required to comply with airworthiness
directives  or  other  Applicable  Law.  Lessees will promptly replace all Parts
that  become  worn out, lost, stolen, taken, destroyed, damaged beyond repair or
permanently  rendered  or  declared  unfit  for  use  for any reason whatsoever.
Lessees  shall repair all damage to the Aircraft resulting from the installation
and removal of Additions and/or Alterations so as to restore the Aircraft to its
condition  prior to installation.  Alterations and/or replacement parts shall be
deemed  accessions,  and shall immediately become a part of the Aircraft for all
purposes  of this Lease, and subject to all of Lessor's rights hereunder without
any payment by or any cost or expense to Lessor.  Except as permitted under this
Section  9(e),  Lessees  will  not  modify the Aircraft (including any change in
configuration)  or  affix  or  remove  any  accessory  to  the  Aircraft  leased
hereunder.

     (f)     Aircraft  Marking.  Lessees agree to (i) prominently display on the
             -----------------
Aircraft  the FAA Registration number, specified in Schedule No. 1 or such other
"N"  number  as  has  been approved by and exclusively reserved to Lessor in its
name  and  duly  recorded with the FAA; and (ii) notify Lessor in writing thirty
(30)  days  prior  to  making  any  change  in the appearance or coloring of the
Aircraft.

     (g)     Security.  Without  limiting  any  Lessee's  indemnities  and other
             --------
agreements  under  this  Lease,  Lessees  hereby:  (i)  expressly  assume  sole
responsibility for the determination and implementation of all security measures
and  systems  necessary or appropriate for the proper protection of the Aircraft
(whether  on  the  ground  or  in  flight)  against theft, vandalism, hijacking,
destruction, bombing, terrorism or similar acts directly or indirectly affecting
the  Aircraft, any part thereof, or any persons who (whether or not on board the
Aircraft)  may  sustain  any  injury or damage as a result of any such acts, and
(ii)  agree to provide to Lessor promptly upon request with evidence of Lessees'
compliance  with  its obligations under this Section 9(g) (but in no event shall
Lessor,  in  its  capacity  as lessor, owner or otherwise, be deemed to have any
duty  with  respect to any security measures imposed by this Lease or Applicable
Law,  whether  or  not  complied  with  by  Lessees,  as  the full and exclusive
assumption of responsibility by Lessees of such responsibility is of the essence
of  this  Lease,  and  a condition to Lessor's participation in the transactions
contemplated  herein).

SECTION  10.  LOSS  OR  DAMAGE.
              ----------------

     (a)     Event of Loss with Respect to the Aircraft.  Upon the occurrence of
             ------------------------------------------
any  Event  of  Loss with respect to the Airframe and/or Aircraft, Lessees shall
notify  Lessor  within five (5) days of the date thereof.  On (i) the next Basic
Rent  Date  following  the  date  of  such notice, or (ii) if such Event of Loss
occurs after the Last Basic Rent Date, within thirty (30) days after such notice
(any  such  date  described  in  clause (i) or (ii) above, the "Casualty Payment
                                                                ----------------
Date"),
----


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Lessees  shall  pay  to Lessor the Basic Rent payable as of the Casualty Payment
Date,  any  other  Rent  then  due,  plus  the  Casualty  Value  of the Aircraft
determined  as of the Casualty Payment Date (but if the Casualty Payment Date is
after  the  last  Basic Rent Date, the Casualty Value for such date shall be the
amount  equal  to  the Lessor's Cost multiplied by the applicable percentage set
forth  on Schedule No. 3 for the last Basic Rent Date or the corresponding Basic
Rent number), together with interest at the Late Payment Rate for the period (if
any)  from  the  Casualty Payment Date through the date of payment.  Upon making
the applicable payment required hereby, Lessees' obligation to pay further Basic
Rent  for  the  Aircraft subsequent to such payment shall cease, but each Lessee
shall  remain  liable  for,  and pay as and when due, all Supplemental Rent.  If
recoverable, as between Lessor and Lessees, Lessees shall be entitled to recover
possession  of  the  Aircraft and to any salvage value in excess of the Casualty
Value  paid  to  Lessor,  but  subject  to  the  requirements of any third party
insurance  carrier  in  order  to  settle  an  insurance claim.  Lessor shall be
entitled  to  receive  and  retain  all amounts payable by the Manufacturer with
respect  to  a  Return  to  Manufacturer  or  by any governmental authority with
respect  to any Requisition of Use, as the case may be, except that such amounts
received in good collected funds shall be applied against Lessees' obligation to
pay  Casualty Value or, so long as no Event of Default has occurred, remitted to
either  or  both  of the Lessees (up to the amount of the Casualty Value paid by
Lessees  to  Lessor  in  good and indefeasible funds).  Lessor shall be under no
duty  to  Lessees  to  pursue any claim against any Person in connection with an
Event  of  Loss.

     (b)     Event  of  Loss with Respect to an Engine or an APU.  Upon an Event
             ---------------------------------------------------
of  Loss with respect to any Engine or any APU, but not the Airframe on which it
was installed, Lessees shall (i) give Lessor prompt written notice thereof, (ii)
by the earlier of the ninetieth (90th) day after the occurrence of such Event of
Loss  or  the  receipt of the applicable insurance proceeds, if any, cause to be
subject to the terms of this Lease for all purposes hereof an engine or APU (and
thereby  duly  convey to Lessor a perfected, first priority security interest in
and  against  such  engine  or  APU),  as applicable, of the same make and model
number  as  the  Engine or any APU suffering the Event of Loss, and (iii) comply
with the other provisions of this Section 10(b).  Such replacement engine or any
APU, as applicable, shall be free and clear of all Liens, have a value, utility,
and  useful life at least equal to, and be in as good an operating condition as,
the  Engine  or any APU suffering the Event of Loss, assuming such Engine or any
APU  was  in  the  condition and repair required by the terms hereof immediately
prior  to  the occurrence of such Event of Loss.  Lessees, at their own cost and
expense,  shall furnish to Lessor such documents to evidence such conveyance, as
Lessor  shall  request.  Upon  full compliance by Lessees with the terms of this
paragraph,  Lessor  will  transfer  to  Lessees all of Lessor's right, title and
interest,  if  any,  in  and  to such Engine or any APU, which transfer shall be
"AS-IS,  WHERE-IS" and release Lessor's security interest in such Engine or APU.
Each such replacement engine or APU, as applicable, shall, after such conveyance
to  Lessor, be deemed an "Engine" or "APU", as applicable, as defined herein and
                          ------      ---
shall  be deemed part of the same Aircraft as was the Engine or any APU replaced
thereby.

     (c)     Risk  of  Loss.  Lessees  shall  bear  the  risk  of  loss,  theft,
             --------------
confiscation,  taking,  unavailability,  damage  or  partial  destruction of the
Aircraft  and  shall not be released from its obligations hereunder in the event
of  any  damage  or  Event of Loss to the Aircraft or any part thereof.  Without
limiting  any  other  provision  hereof,  Lessees shall repair all damage to the
Aircraft  from  any  and  all causes, including as provided in Sections 9(c) and
(e),  and  shall  provide  written  notice  to  Lessor  of  any  Material Damage
concurrently  with  its report of same to the applicable governmental authority,
and  if  no  such  report is required, within ten (10) days of the occurrence of
such  damage.  The  required  notice  must  be provided together with any damage
reports  provided to the FAA or any other governmental authority, the insurer or
Supplier,  and  any documents pertaining to the repair of such damage, including
copies of work orders, and all invoices for related charges.

     (d)     Credit  for Insurance Payments.  If Lessor receives a payment under
             ------------------------------
an  insurance  policy  required  under this Lease in connection with an Event of
Loss  of  an  Airframe  and/or  an  Engine  or any APU, and such payment is both
unconditional  and  indefeasible,  then  provided no Default or Event of Default
shall  have occurred and be continuing, and Lessees shall have complied with the
provisions  of  Section  10(a)  or  10(b),  Lessor  shall  either (i) remit such
proceeds  to  either  or  both  of  the Lessees up to an amount equal to (A) the
amount  paid  by  Lessees  to  Lessor  as the Casualty Value pursuant to Section
10(a),  or  (B) the amount of the replacement costs actually incurred by Lessees
with  respect to the replacement of any Engine or APU pursuant to Section 10(b),
or  (ii)  credit  such  proceeds against any amounts owed by Lessees pursuant to
Section  10(a).  Any excess insurance proceeds shall be retained by each Lessee.


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SECTION  11.  INDEMNIFICATION.
              ---------------

     (a)     Each  Lessee  shall  indemnify,  protect,  save,  defend  and  keep
harmless  Lessor,  its  agents,  employees,  officers,  directors, shareholders,
subsidiaries,  affiliates  and  Assignees  (each  an  "Indemnitee"),  on  a  net
                                                       ----------
after-tax  basis, from and against any and all liabilities, obligations, losses,
damages,  penalties,  claims,  actions,  suits,  demands,  costs,  expenses  and
disbursements  (including  legal  fees  and  expenses)  of  any  kind and nature
whatsoever  ("Claims")  that  may be imposed on, incurred by or asserted against
              ------
any  Indemnitee,  whether or not such Indemnitee shall also be indemnified as to
any such Claim by any other Person, in any way relating to or arising out of (a)
this  Lease  or  any  of  the  other Lease Documents, or the performance, breach
(including  any  Default or Event of Default) or enforcement of any of the terms
hereof  or  thereof, or (b) the Aircraft, including the assertion or enforcement
of  any manufacturer's, vendor's, dealer's or other supplier's warranties on the
Aircraft  or  any  part  thereof,  or the manufacture, inspection, construction,
purchase,  pooling,  interchange,  acceptance,  rejection, ownership, titling or
re-titling,  delivery,  lease,  sublease,  charter,  possession, use, operation,
maintenance,  management,  security, condition, registration or re-registration,
sale,  return,  removal,  repossession,  storage  or  other  disposition  of the
Aircraft or any part the