Document:

Patent Security Agreement, dated March 31, 2004

 Exhibit 10(d) 
  
 EXECUTION VERSION 
  
 PATENT SECURITY AGREEMENT 
  
 THIS PATENT SECURITY AGREEMENT (as amended, restated or otherwise modified from time to time, this “Agreement”) is entered into as of
March 31, 2004 by and between ABX Air, Inc., a Delaware corporation (the Grantor”) and Bank One, NA (Main Office Columbus), as contractual representative (the “Agent”) on behalf of itself and on behalf of the
“Holders of Secured Obligations” (as such term is defined in the below described Credit Agreement). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Grantor, the Agent and certain financial institutions (the “Lenders”) are parties to that certain Credit Agreement dated as of the date hereof (as the same may hereafter be modified,
amended, restated or supplemented from time to time, the “Credit Agreement”), pursuant to which the Lenders may, from time to time, make loans, advances, and other financial accommodations to or for the benefit of the Grantor;

  
 WHEREAS, the Grantor, certain Subsidiaries of the Grantor and
the Agent are parties to that certain Pledge and Security Agreement dated as of the date hereof (as the same may hereafter be modified, amended, restated or supplemented from time to time, the “Pledge and Security Agreement”),
pursuant to which the Grantor has granted a security interest in substantially all of its assets to the Agent for the benefit of the Agent and the Holders of Secured Obligations; and 
  
 WHEREAS, the Lenders have required the Grantor to execute and deliver this Agreement (i) in order to secure the prompt and
complete payment, observance and performance of all of the Secured Obligations (such obligations and liabilities, together with the Secured Obligations, being hereinafter referred to as the “Liabilities”), and (ii) as a condition
precedent to the making of any loans, advances and any other financial accommodations by the Lenders under the Credit Agreement. 
  
 NOW, THEREFORE, in consideration of the premises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Grantor agrees as follows: 
  
 1.
Defined Terms. 
  
 (i) Unless otherwise defined herein,
each capitalized term used herein that is defined in the Credit Agreement shall have the meaning specified for such term in the Credit Agreement. Unless otherwise defined herein or in the Credit Agreement, each capitalized term used herein that is
defined in the Pledge and Security Agreement shall have the meaning specified for such term in the Pledge and Security Agreement. 

 (ii) The words “hereof,” “herein” and “hereunder” and words of like import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and section references are to this Agreement unless otherwise specified. 
  
 (iii) All terms defined in this Agreement in the singular shall have
comparable meanings when used in the plural, and vice versa, unless otherwise specified. 
  
 2. Incorporation of Premises. The premises set forth above are incorporated into this Agreement by this reference thereto and are made a part
hereof. 
  
 3. Security Interest in Patents. To secure the
complete and timely payment, performance and satisfaction of all of the Liabilities, the Grantor hereby grants to the Agent, for the benefit of the Holders of Secured Obligations, a security interest in, as and by way of a first mortgage and
security interest having priority over all other security interests (except any Lien permitted under Section 6.15 of the Credit Agreement), with power of sale to the extent permitted by applicable law, all of the Grantor’s now owned or existing
and hereafter acquired or arising: 
  
 (i)
patents and patent applications, and the inventions and improvements described and claimed therein, including, without limitation, those patents and patent applications listed on Schedule A attached hereto and made a part hereof, and (a) the
reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof, (b) all income, royalties, damages and payments now and hereafter due and/or payable under and with respect thereto, including, without limitation, payments
under all licenses entered into in connection therewith and damages and payments for past or future infringements thereof, (c) the right to sue for past, present and future infringements thereof, and (d) all of the Grantor’s rights
corresponding thereto throughout the world (all of the foregoing patents and applications, together with the items described in clauses (a)-(d) in this paragraph 3(i) are sometimes hereinafter individually and/or
collectively referred to as the “Patents”); and 
  
 (ii) rights under or interests in any patent license agreements with any other party, whether the Grantor is a licensee or licensor under any such license agreement, including, without limitation, those patent license
agreements listed on Schedule B attached hereto and made a part hereof, and after the occurrence and during the continuance of a Default the right to prepare for sale and sell any and all inventory now or hereafter owned by the Grantor and
now or hereafter covered by such licenses (all of the foregoing are hereinafter referred to collectively as the “Licenses”). Notwithstanding the foregoing or anything herein or in any other Loan Document to the contrary, nothing
hereunder or thereunder constitutes or shall be deemed to constitute the grant of a security interest in favor of Agent or any Holder of Secured Obligations with respect to the Grantor’s interest in any License, contract right, license
agreement or any other general intangible (each such License, contract right, license agreement and other general intangible being hereinafter referred to as “Excluded Property”), if the granting of a security interest therein by
the Grantor to Agent or any Holder of Secured Obligations is 
  

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 prohibited by the terms and provisions of the agreement, document or instrument creating, evidencing or
granting a security interest in such Excluded Property or rights related thereto; provided, however, that if and when the prohibition which prevents the granting by the Grantor to Agent of a security interest in any Excluded Property
is removed or otherwise terminated, the Agent will be deemed to have, and at all times to have had, a security interest in such Excluded Property. 
  
 Notwithstanding the foregoing or anything herein or in any other Loan Document to the contrary, nothing hereunder or thereunder constitutes or shall be
deemed to constitute the grant of a security interest in favor of the Agent or any Holder of Secured Obligations with respect to the Grantor’s interest in any property to the extent that the granting of a security interest therein is prohibited
under applicable law or causes the loss of any material right of the Grantor thereunder. 
  
 4. Restrictions on Future Agreements. Except as otherwise permitted by the Credit Agreement and the other Loan Documents, Grantor shall not, without the Agent’s prior written consent, enter into any
agreement, including, without limitation, any license agreement, which is inconsistent with this Agreement or the other Loan Documents, and the Grantor further agrees that it will not take any action, and will use its commercially reasonable efforts
not to permit any action to be taken by others, including, without limitation, licensees, or fail to take any action, which would in any respect affect the validity or enforcement of the rights transferred to the Agent under this Agreement or the
rights associated with the Patents or Licenses. 
  
 5. New
Patents and Licenses. The Grantor represents and warrants that, as of the Closing Date, (i) the Patents listed on Schedule A include all of the patents and patent applications now owned or held by the Grantor, (ii) the Licenses listed on
Schedule A include all of the material patent license agreements under which the Grantor is the licensee or licensor and (iii) except for any Lien permitted by Section 6.15 of the Credit Agreement, no liens, claims or security interests in
such Patents and Licenses have been granted by the Grantor to any Person other than the Agent. If, prior to the termination of this Agreement, the Grantor shall (a) obtain rights to any new patentable inventions, (b) become entitled to the benefit
of any patent, patent application, license or any reissue, division, continuation, renewal, extension or continuation-in-part of any Patent or any improvement on any Patent or License, or (c) enter into any new patent license agreement, the
provisions of paragraph 3 above shall automatically apply thereto. The Grantor shall give to the Agent written notice of events described in clauses (a), (b) and (c) of the preceding sentence with respect to any material
Trademarks or Licenses promptly after the occurrence thereof, but in any event not less frequently than on a quarterly basis. The Grantor hereby authorizes the Agent to modify this Agreement unilaterally (i) by amending Schedule A to include
any future patents and patent applications of the Grantor, and by amending Schedule B to include any future patent license agreement of the Grantor, which are Patents or Licenses under paragraph 3 above or under this paragraph
5, and (ii) by filing in the United States Patent and Trademark Office, in addition to and not in substitution for this Agreement, a duplicate original of this Agreement containing on Schedule A or B thereto, as the case may be,
such future patents, patent applications and license agreements. 
  

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 6. Royalties. The Grantor hereby agrees that the use by the Agent of the Patents and Licenses as
authorized hereunder in connection with the Agent’s exercise of its rights and remedies to the extent expressly permitted under paragraph 14 or pursuant to the Pledge and Security Agreement after the occurrence and continuance of a
Default shall be coextensive with the Grantor’s rights thereunder and with respect thereto and without any liability for royalties or other related charges from the Agent or any other Holder of Secured Obligations to the Grantor. 
  
 7. Nature and Continuation of the Agent’s Security Interest;
Termination of the Agent’s Security Interest. This Agreement is made for collateral security purposes only. This Agreement shall create a continuing security interest in the Patents and Licenses and shall terminate only when the Liabilities
have been paid in full and the Credit Agreement and the other Loan Documents have been terminated. When this Agreement has terminated, the Agent shall promptly execute and deliver to the Grantor, at the Grantor’s expense, all termination
statements and other instruments and take such other actions as may be necessary or proper to terminate the Agent’s security interest in the Patents and the Licenses, subject to any disposition thereof which may have been made by the Agent
pursuant to this Agreement or the Pledge and Security Agreement. 
  
 8. Duties of the Grantor. The Grantor shall have the duty, to the extent reasonably necessary in the normal conduct of the Grantor’s business, as determined in the reasonable discretion of the Grantor, to: (i) reasonably
prosecute diligently any patent application that is part of the Patents pending as of the date hereof or hereafter until the termination of this Agreement, and (ii) apply for registration for unpatented but patentable inventions. The Grantor further
agrees (i) not to abandon any Patent or License, to the extent reasonably necessary or otherwise desirable in the normal conduct of the Grantor’s business, as determined in the reasonable discretion of the Grantor, without the prior written
consent of the Agent, which consent shall not be unreasonably withheld, and (ii) to use commercially reasonable efforts to maintain in full force and effect the Patents and the Licenses that are or shall be reasonably necessary or otherwise
desirable, as determined in the Grantor’s reasonable discretion, in the operation of the Grantor’s business. Any expenses incurred in connection with the foregoing shall be borne by the Grantor. Neither the Agent nor any of the Holders of
Secured Obligations shall have any duty with respect to the Patents and Licenses. Without limiting the generality of the foregoing, neither the Agent nor any of the Holders of Secured Obligations shall be under any obligation to take any steps
necessary to preserve rights in the Patents or Licenses against any other parties, but the Agent may do so at its option from and after the occurrence and during the continuance of a Default, and all reasonable expenses incurred in connection
therewith shall be for the sole account of the Grantor and shall be added to the Liabilities secured hereby. 
  
 9. The Agent’s Right to Sue. Following the occurrence and during the continuance of a Default, the Agent shall have the right, but shall not
be obligated, to bring suit in its own name to enforce the Patents and the Licenses and, if the Agent shall commence any such suit, the Grantor shall, at the request of the Agent, do any and all lawful acts and execute any and all proper documents
reasonably required by the Agent in aid of such enforcement. The Grantor shall, upon demand, promptly reimburse the Agent for all reasonable costs and expenses incurred by the Agent in the exercise of its rights under this paragraph 9
(including, without limitation, reasonable fees and expenses of attorneys and paralegals for the Agent). 
  

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 10. Waivers. The Agent’s failure, at any time or times hereafter, to require strict
performance by the Grantor of any provision of this Agreement shall not waive, affect or diminish any right of the Agent thereafter to demand strict compliance and performance therewith nor shall any course of dealing between the Grantor and the
Agent have such effect. No single or partial exercise of any right hereunder shall preclude any other or further exercise thereof or the exercise of any other right. None of the undertakings, agreements, warranties, covenants and representations of
the Grantor contained in this Agreement shall be deemed to have been suspended or waived by the Agent unless such suspension or waiver is in writing signed by an officer of the Agent and directed to the Grantor specifying such suspension or waiver.

  
 11. Severability. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but the provisions of this Agreement are severable. If any clause or provision shall be held invalid and unenforceable in whole or in part in any
jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part hereof, in such jurisdiction, and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or
provision of this Agreement in any jurisdiction. 
  
 12.
Modification. This Agreement cannot be altered, amended or modified in any way, except as specifically provided in paragraph 5 hereof or by a writing signed by the parties hereto. 
  
 13. Cumulative Remedies; Power of Attorney. Following the occurrence
and during the continuance of a Default, the Grantor hereby irrevocably designates, constitutes and appoints the Agent (and all Persons designated by the Agent in its sole and absolute discretion) as the Grantor’s true and lawful
attorney-in-fact, and authorizes the Agent and any of the Agent’s designees, in the Grantor’s or the Agent’s name, to take any action and execute any instrument which the Agent may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation, after the giving by the Agent of written notice to the Grantor of the Agent’s intention to enforce its rights and claims against the Grantor, to (i) endorse the Grantor’s name on
all applications, documents, papers and instruments necessary or otherwise desirable for the Agent in the use of the Patents or the Licenses, (ii) assign, pledge, convey or otherwise transfer title in or dispose of the Patents or the Licenses to
anyone on commercially reasonable terms, (iii) grant or issue any exclusive or nonexclusive license under the Patents or, to the extent permitted, under the Licenses, to anyone on commercially reasonable terms, and (iv) take any other actions with
respect to the Patents or the Licenses as the Agent deems in its own or the Holders of Secured Obligations’ best interest. The Grantor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue hereof. This power of
attorney is coupled with an interest and shall be irrevocable until all of the Liabilities shall have been paid in full and the Credit Agreement and the other Loan Documents shall have been terminated. The Grantor acknowledges and agrees that this
Agreement is not intended to limit or restrict in any way the rights and remedies of the Agent or the other Holders of Secured Obligations under the Pledge and Security Agreement, but rather is intended to facilitate the exercise of such rights and
remedies. 
  

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 The Agent shall have, in addition to all other rights and remedies given it by the terms of this
Agreement, all rights and remedies allowed by law and the rights and remedies of a secured party under the Uniform Commercial Code as enacted in any jurisdiction in which the Patents or the Licenses may be located or deemed located. Upon the
occurrence and during the continuance of a Default and the election by the Agent to exercise any of its remedies under the Uniform Commercial Code with respect to the Patents and Licenses, the Grantor agrees to assign, convey and otherwise transfer
title in and to the Patents and the Licenses to the Agent or any transferee of the Agent and to execute and deliver to the Agent or any such transferee all such agreements, documents and instruments as may be necessary, in the Agent’s sole
discretion, to effect such assignment, conveyance and transfer. All of the Agent’s rights and remedies with respect to the Patents and the Licenses, whether established hereby, by the Pledge and Security Agreement, by any other agreements or by
law, shall be cumulative and may be exercised separately or concurrently. Notwithstanding anything set forth herein to the contrary, it is hereby expressly agreed that upon the occurrence and during the continuance of a Default, the Agent may
exercise any of the rights and remedies provided in this Agreement, the Pledge and Security Agreement and any of the other Loan Documents. The Grantor agrees that any notification of intended disposition of any of the Patents and Licenses required
by law shall be deemed reasonably and properly given if given at least ten (10) days before such disposition. Notwithstanding anything herein to the contrary, in no event shall the rights and remedies of Agent, any Holder of Secured Obligations or
any of their respective designees or representatives, granted hereunder or any other Loan Document, be construed to permit any such Person to take any action or fail to act in violation of any law or the terms and conditions of any License or other
agreement or document covering any of the collateral granted to the Agent hereunder. 
  
 14. Successors and Assigns. This Agreement shall be binding upon the Grantor and its successors and assigns, and shall inure to the benefit of each of the Holders of Secured Obligations and their respective
permitted nominees, successors and assigns. The Grantor’s successors and assigns shall include, without limitation, a receiver, trustee or debtor-in-possession of or for the Grantor; provided, however, except as otherwise
permitted by the Credit Agreement, that Grantor shall not voluntarily assign or transfer its rights or obligations hereunder without the Agent’s prior written consent. 
  
 15. Governing Law. This Agreement shall be construed in accordance with the internal laws of the State of Ohio.

  
 16. Notices. All notices or other communications
hereunder shall be given in the manner and to the addresses set forth in the Credit Agreement and the Pledge and Security Agreement. 
  
 17. Section Titles. The section titles herein are for convenience of reference only, and shall not affect in any way the interpretation of any of
the provisions hereof. 
  

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 18. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 19. Merger. This Agreement represents the final agreement of the
Grantor and the Agent with respect to the matters contained herein and may not be contradicted by evidence of prior or contemporaneous agreements, or subsequent oral agreements, between any Grantor and the Agent or any Holder of Secured Obligations.

  
 The remainder of this page is intentionally blank. 

 

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 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

			
	 ABX AIR, INC., as Grantor

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	Accepted and agreed to as of the day and year first
above written.
	
	BANK ONE, NA, (MAIN OFFICE COLUMBUS),
as Agent
		
	 By:
	 	  

	 Name:
	 	 
	 Title:Pledge and Security Agreement, dated March 31, 2004

 Exhibit 10(e) 
  
 EXECUTION VERSION 
  
 PLEDGE AND SECURITY AGREEMENT 
  
 THIS PLEDGE AND SECURITY AGREEMENT (this “Security Agreement”) is entered into as of March 31, 2004 by and among ABX AIR, INC., a
Delaware corporation (the “Borrower”), SOUND SUPPRESSION, INC. (“SSI”), an Ohio corporation, AIRBORNE F T Z, INC., an Ohio corporation (together with the Borrower and SSI, the “Initial Grantors” and
together with any additional Domestic Subsidiaries, whether now existing or hereafter formed which become parties to this Security Agreement by executing a Supplement hereto in substantially the form of Annex I, the “Grantors”), and
BANK ONE, NA (Main Office Columbus), in its capacity as administrative agent (the “Administrative Agent”) for the lenders party to the Credit Agreement referred to below (collectively, the “Lenders”). 
  
 PRELIMINARY STATEMENT 
  
 The Borrower, the Administrative Agent and the Lenders are entering into a
Credit Agreement dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). The Grantors are entering into this Security Agreement in order to induce the Lenders
to enter into and extend credit to the Borrower under the Credit Agreement. 
  
 ACCORDINGLY, the Grantors and the Administrative Agent, for the benefit and on behalf of the Holders of Secured Obligations, hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1. Terms Defined in Credit Agreement. All capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms
in the Credit Agreement. 
  
 1.2. Terms Defined in Ohio
UCC. Terms defined in the Ohio UCC which are not otherwise defined in this Security Agreement are used herein as defined in the Ohio UCC. 
  
 1.3. Definitions of Certain Terms Used Herein. As used in this Security Agreement, in addition to the terms defined in the Preliminary Statement,
the following terms shall have the following meanings: 
  
 “Aircraft” means all aircraft of the Grantors, now or hereafter owned, leased or used in its business for the transportation of passengers and/or cargo and all related components, parts and property used in the operation of
the aircraft which are attached to, connected with or located on such aircraft (including, without limitation, all galleys, seats, instruments, avionics, electronics, equipment, parts, attachments and accessories but excluding Engines, Simulators
and Spare Parts). 

 “Accounts” shall have the meaning set forth in Article 9 of the Ohio UCC. 
  
 “Article” means a numbered article of this Security
Agreement, unless another document is specifically referenced. 
  
 “Chattel Paper” shall have the meaning set forth in Article 9 of the Ohio UCC. 
  
 “Collateral” means all Aircraft, Accounts, Chattel Paper, Commercial Tort Claims, Documents, Equipment, Engines, Fixtures, Goods, General
Intangibles, Instruments, Inventory, Investment Property, Pledged Deposits, Simulators, Spare Parts, Supporting Obligations and Other Collateral, wherever located, in which any Grantor now has or hereafter acquires any right or interest, and the
proceeds (including Stock Rights), insurance proceeds and products thereof, together with all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto. 

 
 “Commercial Tort Claims” means those certain currently
existing commercial tort claims of any Grantor, including each commercial tort claim specifically described in Exhibit F. 
  
 “Control” shall have the meaning set forth in Article 8 or, if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the
Ohio UCC. 
  
 “Default” shall have the meaning
set forth in the Credit Agreement. 
  
 “Deposit
Accounts” shall have the meaning set forth in Article 9 of the Ohio UCC. 
  
 “Documents” shall have the meaning set forth in Article 9 of the Ohio UCC. 
  
 “Engines” means goods of a Grantor consisting of aircraft engines having 750 or more rated takeoff horsepower (or the equivalent thrust)
which are owned by a Grantor and used in connection with the operation of its Aircraft, whether now owned or hereafter acquired and wherever located, and all related components, parts and other property used in the operation of the aircraft engines
which are attached to, connected with or located on the aircraft engines (including, without limitation, all equipment, parts, appliances and accessories but excluding Aircraft, Simulators and Spare Parts). 
  
 “Equipment” shall have the meaning set forth in Article 9 of
the Ohio UCC. 
  
 “Exhibit” refers to a specific
exhibit to this Security Agreement, unless another document is specifically referenced. 
  
 “Fixtures” shall have the meaning set forth in Article 9 of the Ohio UCC. 
  
 “General Intangibles” shall have the meaning set forth in Article 9 of the Ohio UCC. 
  
 “Goods” shall have the meaning set forth in Article 9 of the
Ohio UCC. 
  

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 “Instruments” shall have the meaning set forth in Article 9 of the Ohio UCC. 

 
 “Inventory” shall have the meaning set forth in Article 9
of the Ohio UCC. 
  
 “Investment Property” shall
have the meaning set forth in Article 9 of the Ohio UCC. 
  
 “Ohio UCC” means the Ohio Uniform Commercial Code as in effect from time to time. 
  
 “Other Collateral” means any property of the Grantors, not included within the defined terms Accounts, Chattel Paper, Commercial Tort
Claims, Documents, Equipment, Fixtures, General Intangibles, Instruments, Inventory, Investment Property and Pledged Deposits, including, without limitation, all cash on hand, letter-of-credit rights, letters of credit, Stock Rights and Deposit
Accounts or other deposits (general or special, time or demand, provisional or final) with any bank or other financial institution, it being intended that the Collateral include all personal property of the Grantors. 
  
 “Pledged Deposits” means all time deposits of money (other
than Deposit Accounts and Instruments), whether or not evidenced by certificates, which a Grantor may from time to time designate as pledged to the Administrative Agent or to any Holder of Secured Obligations as security for any Obligation, and all
rights to receive interest on said deposits. 
  
 “Receivables” means the Accounts, Chattel Paper, Documents, Investment Property, Instruments or Pledged Deposits, and any other rights or claims to receive money which are General Intangibles or which are otherwise included
as Collateral. 
  
 “Required Secured Parties”
means (x) prior to an acceleration of the Secured Obligations under the Credit Agreement, the Required Lenders, (y) after an acceleration of the Secured Obligations under the Credit Agreement but prior to the date upon which the Credit Agreement has
terminated by its terms and all of the Secured Obligations thereunder have been paid in full, Lenders and their Affiliates holding in the aggregate more than 50% of the total of (i) the unpaid principal amount of the outstanding Loans and LC
Obligations and (ii) the aggregate net early termination payments and all other amounts then due and unpaid from the Borrower to the Lenders or their Affiliates under Rate Management Transactions, as determined by the Administrative Agent in its
reasonable discretion, and (z) after the Credit Agreement has terminated by its terms and all of the Secured Obligations thereunder have been paid in full (whether or not the Secured Obligations under the Credit Agreement were ever accelerated),
Lenders and their Affiliates holding in the aggregate more than 50% of the aggregate net early termination payments and all other amounts then due and unpaid from the Borrower to the Lenders or their Affiliates under Rate Management Transactions, as
determined by the Administrative Agent in its reasonable discretion. 
  
 “Section” means a numbered section of this Security Agreement, unless another document is specifically referenced. 
  
 “Security” has the meaning set forth in Article 8 of the Ohio UCC. 
  

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 “Simulators” means the following flight simulators owned by the Borrower and located at
the Wilmington Air Park in Wilmington, Ohio: (a) Boeing 767 Level C simulator; (b) DC-9 Level C simulator; (c) DC-9 Level B simulator; and (d) DC-8 Level B simulator. 
  
 “Spare Parts” means goods of a Grantor consisting of aircraft instruments, apparatus, parts (whether
rotable, repairable or expendable, accessories, appliances, avionics, and other components and parts, which are owned or held by or on behalf of a Grantor in connection with the use, operation or maintenance of Aircraft, Engines or Simulators and
which are not attached to, connected with or located on an Aircraft, Engine or Simulator, in each case, whether now owned or hereafter acquired and wherever located, including, without limitation, “appliances” (as such term is defined in
49 U.S.C. 40102(a)(11)) and “spare parts” (as such term is defined in 49 U.S.C. 40102(a)(38)) but excluding Aircraft, Engines and Simulators. 
  
 “Stock Rights” means any securities, dividends or other distributions and any other right or property which any Grantor shall receive or
shall become entitled to receive for any reason whatsoever with respect to, in substitution for or in exchange for any securities or other ownership interests in a corporation, partnership, joint venture or limited liability company constituting
Collateral and any securities, any right to receive securities and any right to receive earnings, in which any Grantor now has or hereafter acquires any right, issued by an issuer of such securities. 
  
 “Supporting Obligation” shall have the meaning set forth in
Article 9 of the Ohio UCC. 
  
 The foregoing definitions shall be
equally applicable to both the singular and plural forms of the defined terms. 
  
 ARTICLE II 
  
 GRANT OF SECURITY
INTEREST 
  
 Each of the Grantors hereby pledges, assigns and
grants to the Administrative Agent, on behalf of and for the ratable benefit of the Holders of Secured Obligations and (to the extent specifically provided herein) their Affiliates, a security interest in all of such Grantor’s right, title and
interest, whether now owned or hereafter acquired, in and to the Collateral to secure the prompt and complete payment and performance of the Secured Obligations; notwithstanding the foregoing or anything herein or in any other Loan Document to the
contrary, nothing hereunder or thereunder constitutes or shall be deemed to constitute the grant of a security interest in favor of the Administrative Agent or any Holder of Secured Obligations with respect to such Grantor’s interest in (i) the
property listed on Schedule A to this Security Agreement, (ii) any rights or interest in the license granted by Airborne, Inc. to any Grantor to use the logo, related design or tradename “Airborne Express”, (iii) any license,
contract right, license agreement, or any other general intangible, if the granting of a security interest therein by such Grantor to the Administrative Agent or any Holder of Secured Obligations is prohibited by the terms and provisions of the
agreement, document or instrument creating, evidencing or granting a security interest in such property or rights related thereto to the extent such prohibition is not rendered ineffective under applicable law; provided, however, that
if and when the prohibition which prevents the granting by such Grantor to the Administrative Agent of a security interest in any 
  

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 property is removed or otherwise terminated, the Administrative Agent will be deemed to have, and at all time to have
had, a security interest in such property, or (iv) any property to the extent that the granting of a security interest therein is prohibited under applicable law or causes the loss of any material right of Grantor thereunder; provided,
further, however, the foregoing exclusion shall in no way be construed so as to limit, impair or otherwise affect the Administrative Agent’s or any Holder of Secured Obligations’ security interest upon any proceeds of the
excluded property. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Each of the Initial Grantors represents and warrants to the Administrative
Agent and the Holders of Secured Obligations, and each Grantor that becomes a party to this Security Agreement pursuant to the execution of a Security Agreement Supplement in substantially the form of Annex I represents and warrants (after giving
effect to supplements to each of the Exhibits hereto with respect to such subsequent Grantor as attached to such Security Agreement Supplement), that: 
  
 3.1. Title, Authorization, Validity and Enforceability. Such Grantor has good and valid rights in or the power to transfer the Collateral owned by
it and title to the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of all Liens except for Liens permitted under Section 4.1.6 hereof, and has full corporate, limited liability company
or partnership, as applicable, power and authority to grant to the Administrative Agent the security interest in such Collateral pursuant hereto. The execution and delivery by such Grantor of this Security Agreement has been duly authorized by
proper corporate, limited liability company or partnership, as applicable, other proceedings, and this Security Agreement constitutes a legal, valid and binding obligation of such Grantor and creates a security interest which is enforceable against
such Grantor in all Collateral it now owns or hereafter acquires, except as enforceability may be limited by (i) bankruptcy, insolvency, fraudulent conveyances, reorganization or similar laws relating to or affecting the enforcement of
creditors’ rights generally, (ii) general equitable principles (whether considered in a proceeding in equity or at law), and (iii) requirements of reasonableness, good faith and fair dealing. When financing statements have been filed in the
appropriate offices against such Grantor in the locations listed on Exhibit E, the Administrative Agent will have a fully perfected first priority security interest in the Collateral owned by such Grantor in which a security interest may be
perfected by filing, subject only to Liens permitted under Section 4.1.6 hereof. 
  
 3.2. Conflicting Laws and Contracts. Neither the execution and delivery by such Grantor of this Security Agreement, the creation and perfection of the security interest in the Collateral granted hereunder, nor
compliance with the terms and provisions hereof will violate (i) any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on such Grantor, or (ii) such Grantor’s charter, articles or by-laws (or similar constitutive
documents), or (iii) the provisions of any indenture, instrument or agreement to which such Grantor is a party or is subject, or by which it, or its Property may be bound or affected, or conflict with or constitute a default thereunder, or result in
or require the creation or imposition of any Lien in, of or on the Property of such Grantor pursuant to the terms of any such indenture, instrument or agreement (other than any Lien of the Administrative Agent on behalf of the Holders of Secured
Obligations). 
  

 5 

 3.3. Principal Location. Such Grantor’s mailing address and the location of its place of
business (if it has only one) or its chief executive office (if it has more than one place of business), is disclosed in Exhibit A; such Grantor has no other material places of business except those set forth in Exhibit A. 

 
 3.4. Property Locations. The Inventory, Equipment and any Fixtures
having a value in excess of $100,000 of each Grantor are located solely at the locations of such Grantor described in Exhibit A. All of said locations are owned by such Grantor except for locations (i) which are leased by such Grantor as
lessee and designated in Part B of Exhibit A and (ii) at which Inventory is held in a public warehouse or is otherwise held by a bailee or on consignment by such Grantor as designated in Part C of Exhibit A. In each case, such Grantor
will use commercially reasonable efforts to deliver bailment agreements, warehouse receipts, financing statements or other documents satisfactory to the Administrative Agent to protect the Administrative Agent’s and the Holders of Secured
Obligations’ security interest in such Inventory and Equipment located at any of the locations described on Part B or Part C of Exhibit A. 
  
 3.5. No Other Names. Except for “Airborne Express” with respect to the Borrower and “Airborne FTZ” with respect to Airborne F T
Z, Inc., such Grantor has not conducted business under any name except the name in which it has executed this Security Agreement, which is the exact name as it appears in such Grantor’s organizational documents, as amended, as filed with such
Grantor’s jurisdiction of organization as of the Closing Date. 
  
 3.6. No Default. No Default or Unmatured Default exists. 
  
 3.7. Accounts and Chattel Paper. The names of the obligors, amounts owing, due dates and other information with respect to the Accounts and Chattel Paper owned by such Grantor are and will be correctly stated
in all records of such Grantor relating thereto and in all invoices and reports with respect thereto furnished to the Administrative Agent by such Grantor from time to time. As of the time when each Account or each item of Chattel Paper arises, such
Grantor shall be deemed to have represented and warranted that such Account or Chattel Paper, as the case may be, and all records relating thereto, are genuine and in all respects what they purport to be. 
  
 3.8. Filing Requirements. None of the Collateral owned by such Grantor
is of a type for which security interests or liens may be perfected by filing under any federal statute except patents, trademarks and copyrights held by such Grantor and described in Exhibit B. The legal description, county and street
address of the property on which any Fixtures having a value in excess of $100,000 owned by such Grantor are located is set forth in Exhibit C together with the name and address of the record owner of each such property. 
  
 3.9. No Financing Statements. No financing statement describing all or
any portion of the Collateral which has not lapsed or been terminated naming such Grantor as debtor has been filed in any jurisdiction except financing statements (i) naming the Administrative Agent on 
  

 6 

 behalf of the Holders of Secured Obligations as the secured party and (ii) in respect of Liens permitted by Section 6.15
of the Credit Agreement; provided, that nothing herein shall be deemed to constitute an agreement to subordinate any of the Liens of the Administrative Agent under the Loan Documents to any Liens otherwise permitted under Section 6.15 of the
Credit Agreement. 
  
 3.10. Federal Employer Identification
Number; State Organization Number; Jurisdiction of Organization. Such Grantor’s federal employer identification number is, and if such Grantor is a registered organization, such Grantor’s State of organization, type of organization and
State of organization identification number and is, as follows: 
  

									
	 GRANTOR

	  	 Federal Employer
Identification Number

	  	 Type of Organization

	  	 State of Incorporation

	  	 State Organization
Number

	ABX Air, Inc.	  	 	  	Corporation	  	Delaware	  	0885720
					
	Sound Suppression, Inc.	  	1140852	  	Corporation	  	Ohio	  	599738
					
	Airborne F T Z, Inc.	  	1375411	  	Corporation	  	Ohio	  	658409

  
 3.11. Pledged
Securities and Other Investment Property. Exhibit D sets forth a complete and accurate list of the Instruments, Securities and other Investment Property delivered to the Administrative Agent. Each Grantor is the direct and beneficial
owner of each Instrument, Security and other type of Investment Property listed on Exhibit D as being owned by it, free and clear of any Liens, except for the security interest granted to the Administrative Agent for the benefit of the
Holders of Secured Obligations hereunder or as permitted by Section 6.15 of the Credit Agreement. Each Grantor further represents and warrants that (i) all such Instruments, Securities or other types of Investment Property which are shares of stock
in a corporation or ownership interests in a partnership or limited liability company have been (to the extent such concepts are relevant with respect to such Instrument, Security or other type of Investment Property) duly and validly issued, are
fully paid and non-assessable and constitute the percentage of the issued and outstanding shares of stock (or other equity interests) of the respective issuers thereof indicated on Exhibit D hereto and (ii) with respect to any certificates
delivered to the Administrative Agent representing an ownership interest in a partnership or limited liability company, either such certificates are Securities as defined in Article 8 of the Ohio UCC of the applicable jurisdiction as a result of
actions by the issuer or otherwise, or, if such certificates are not Securities, such Grantor has so informed the Administrative Agent so that the Administrative Agent may take steps to perfect its security interest therein as a General Intangible.

  

 7 

 ARTICLE IV 
  
 COVENANTS 
  
 From the date of this Security Agreement and thereafter until this Security Agreement is terminated, each of the Initial Grantors agrees, and from and
after the effective date of any Security Agreement Supplement applicable to any Grantor (and after giving effect to supplements to each of the Exhibits hereto with respect to such subsequent Grantor as attached to such Security Agreement Supplement)
and thereafter until this Security Agreement is terminated each such subsequent Grantor agrees: 
  
 4.1. General. 
  
 4.1.1 Inspection. Each Grantor will permit the Administrative Agent or any Holder of Secured Obligations, by its representatives
and agents (i) to inspect the Collateral, (ii) to examine and make copies of the records of such Grantor relating to the Collateral and (iii) to discuss the Collateral and the related records of such Grantor with, and to be advised as to the same
by, such Grantor’s officers and employees (and, in the case of any Receivable, with any person or entity which is or may be obligated thereon), all at such reasonable times and intervals as the Administrative Agent or such Holder of Secured
Obligations may determine, and all at such Grantor’s expense. 
  
 4.1.2 Taxes. Such Grantor will pay when due all taxes, assessments and governmental charges and levies upon the Collateral owned by such Grantor, except (i) those which are being contested in good faith by
appropriate proceedings and with respect to which adequate reserves have been set aside in accordance with Agreement Accounting Principles and with respect to which no Lien exists, and (ii) those which by reason of the amount involved or the
remedies available to the taxing authority could not reasonably be expected to have a Material Adverse Effect. 
  
 4.1.3 Records and Reports; Notification of Default. Each Grantor shall keep and maintain complete, accurate and proper books and
records with respect to the Collateral owned by such Grantor, and furnish to the Administrative Agent, with sufficient copies for each of the Holders of Secured Obligations, such reports relating to the Collateral as the Administrative Agent shall
from time to time reasonably request. Each Grantor will give prompt notice in writing to the Administrative Agent and the Lenders of the occurrence of any Default or Unmatured Default and of any other development, financial or otherwise, which might
materially and adversely affect the Collateral. 
  
 4.1.4 Financing Statements and Other Actions; Defense of Title. Each Grantor hereby authorizes the Administrative Agent to file, and if requested will execute and deliver to the Administrative Agent, all financing statements
describing the Collateral owned by such Grantor and other documents and take such other actions as may from time to time reasonably be requested by the Administrative Agent in order to maintain a first perfected security interest including, if
applicable, using commercially reasonable efforts to obtain Control of, the Collateral owned by such Grantor, subject to Liens permitted under Section 6.15 of the Credit Agreement; provided, that nothing herein shall 
  

 8 

 be deemed to constitute an agreement to subordinate any of the Liens of the Administrative Agent under
the Loan Documents to any Liens otherwise permitted under Section 6.15 of the Credit Agreement. Such financing statements may describe the Collateral in the same manner as described herein or may contain an indication or description of collateral
that describes such property in any other manner as the Administrative Agent may determine, in its sole discretion, is necessary, advisable or prudent to ensure that the perfection of the security interest in the Collateral granted to the
Administrative Agent herein, including, without limitation, describing such property as “all assets” or “all personal property, whether now owned or hereafter acquired.” Each Grantor will take any and all actions reasonably
necessary to defend title to the Collateral owned by such Grantor against all persons and to defend the security interest of the Administrative Agent in such Collateral and the priority thereof against any Lien not expressly permitted hereunder.

  
 4.1.5 Disposition of Collateral. No
Grantor will sell, lease or otherwise dispose of the Collateral owned by such Grantor except (i) prior to the occurrence of a Default or Unmatured Default, dispositions specifically permitted pursuant to Section 6.12 of the Credit Agreement or the
other Loan Documents, (ii) until such time following the occurrence and during the continuance of a Default as such Grantor receives a notice from the Administrative Agent instructing such Grantor to cease such transactions, sales or leases of
Inventory in the ordinary course of business, and (iii) until such time as such Grantor receives a notice from the Administrative Agent pursuant to Article VII, proceeds of Inventory and Accounts collected in the ordinary course of business.

  
 4.1.6 Liens. No Grantor will create,
incur, or suffer to exist any Lien on the Collateral owned by such Grantor except Liens permitted pursuant to Section 6.15 of the Credit Agreement, provided, that nothing herein shall be deemed to constitute an agreement to subordinate any of
the Liens of the Administrative Agent under the Loan Documents to any Liens otherwise permitted under Section 6.15 of the Credit Agreement. 
  
 4.1.7 Change in Corporate Existence, Type or Jurisdiction of Organization, Location, Name. Each Grantor will: 
  

	 	(i)	except as otherwise permitted by the Credit Agreement, preserve its existence and corporate structure as in effect on the Closing Date; 

  

	 	(ii)	not change its jurisdiction of organization; and 

  

	 	(iii)	not (i) have any Inventory, Equipment or any Fixtures having a value in excess of $100,000 or proceeds or products thereof (other than Inventory and proceeds thereof disposed of as
permitted by Section 4.1.5) at a location other than a location specified in Exhibit A, (ii) change its name or taxpayer identification number or (iii) change its mailing address, 

  
 unless, in each such case, such Grantor shall have given the Administrative
Agent prior written notice of such event or occurrence. 
  

 9 

 4.1.8 Other Financing Statements. No Grantor will suffer to exist or authorize the
filing of any financing statement naming it as debtor covering all or any portion of the Collateral owned by such Grantor, except any financing statement authorized under Section 4.1.4 hereof. 
  
 4.2. Receivables. 
  
 4.2.1 Certain Agreements on Receivables. During the
occurrence and continuation of a Default, no Grantor will make or agree to make any discount, credit, rebate or other reduction in the original amount owing on a Receivable or accept in satisfaction of a Receivable less than the original amount
thereof, except that, prior to the occurrence and continuance of a Default, such Grantor may reduce the amount of Accounts arising from the sale of Inventory or the rendering of services in accordance with its present policies and in the ordinary
course of business. 
  
 4.2.2 Collection of
Receivables. Except as otherwise provided in this Security Agreement, each Grantor will collect and enforce, at such Grantor’s sole expense, all amounts due or hereafter due to such Grantor under the Receivables owned by such Grantor.

  
 4.2.3 Delivery of Invoices. Each
Grantor will deliver to the Administrative Agent immediately upon its request after the occurrence and during the continuance of a Default duplicate invoices with respect to each Account owned by such Grantor bearing such language of assignment as
the Administrative Agent shall specify. 
  
 4.2.4
Disclosure of Counterclaims on Receivables. If (i) any discount, credit or agreement to make a rebate or to otherwise reduce the amount owing on a Receivable owned by such Grantor exists or (ii) if, to the knowledge of such Grantor, any
dispute, setoff, claim, counterclaim or defense exists or has been asserted or threatened with respect to a Receivable, such Grantor will disclose such fact to the Administrative Agent in writing in connection with the inspection by the
Administrative Agent of any record of such Grantor relating to such Receivable and in connection with any invoice or report furnished by such Grantor to the Administrative Agent relating to such Receivable. 
  
 4.3. Inventory and Equipment. Each Grantor will do all things
necessary to maintain, preserve, protect and keep the Inventory and the Equipment owned by such Grantor in good repair, working order and saleable condition (ordinary wear and tear excepted) and make all necessary and proper repairs, renewals and
replacements so that its business carried on in connection therewith may be properly conducted at all times, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

  
 4.4. Instruments, Securities, Chattel Paper, Documents and
Pledged Deposits. Each Grantor will (i) deliver to the Administrative Agent immediately upon execution of this Security Agreement the originals of all Chattel Paper and Instruments (excluding checks) constituting Collateral (if any then exist),
(ii) deliver to the Administrative Agent as promptly as possible, but in any event within sixty (60) days (or by such later date as the Administrative Agent may agree 
  

 10 

 in the exercise of its reasonable discretion) originals of all Securities constituting Collateral, (iii) hold in trust
for the Administrative Agent upon receipt and immediately thereafter deliver to the Administrative Agent any Chattel Paper, Securities and Instruments (excluding checks) constituting Collateral, (iv) upon the designation of any Pledged Deposits (as
set forth in the definition thereof), deliver to the Administrative Agent such Pledged Deposits which are evidenced by certificates included in the Collateral endorsed in blank, marked with such legends and assigned as the Administrative Agent shall
specify, and (v) upon the Administrative Agent’s request, after the occurrence and during the continuance of a Default, deliver to the Administrative Agent (and thereafter hold in trust for the Administrative Agent upon receipt and immediately
deliver to the Administrative Agent) any Document evidencing or constituting Collateral. Notwithstanding the foregoing, so long as no Default shall have occurred and be continuing, Grantors shall not be required to deliver to the Administrative
Agent (i) any Chattel Paper having a term of less than ninety (90) days or (ii) any Instrument having a face amount of less than $100,000. 
  
 4.5. Uncertificated Securities and Certain Other Investment Property. Each Grantor will permit the Administrative Agent from time to time to cause
the appropriate issuers (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or other types of Investment Property not represented by certificates which are Collateral owned by such Grantor to mark
their books and records with the numbers and face amounts of all such uncertificated securities or other types of Investment Property not represented by certificates and all rollovers and replacements therefor to reflect the Lien of the
Administrative Agent granted pursuant to this Security Agreement. Each Grantor will use all commercially reasonable efforts, with respect to Investment Property constituting Collateral owned by such Grantor held with a financial intermediary, to
cause such financial intermediary to enter into a control agreement with the Administrative Agent in form and substance reasonably satisfactory to the Administrative Agent. 
  
 4.6. Stock and Other Ownership Interests. 
  
 4.6.1 Changes in Capital Structure of Issuers. Except as permitted under the Credit Agreement, no
Grantor will (i) permit or suffer any issuer of privately held corporate securities or other ownership interests in a corporation, partnership, joint venture or limited liability company constituting Collateral owned by such Grantor to dissolve,
liquidate, retire any of its capital stock or other Instruments or Securities evidencing ownership, reduce its capital or merge or consolidate with any other entity, or (ii) vote any of the Instruments, Securities or other Investment Property in
favor of any of the foregoing except to the extent permitted under Section 6.11 of the Credit Agreement. 
  
 4.6.2 Issuance of Additional Securities. No Grantor will permit or suffer the issuer of privately held corporate securities or
other ownership interests in a corporation, partnership, joint venture or limited liability company constituting Collateral to issue any such securities or other ownership interests, any right to receive the same or any right to receive earnings,
except to such Grantor. 
  
 4.6.3 Registration
of Pledged Securities and other Investment Property. Each Grantor will permit any registerable Collateral owned by such Grantor to be registered in 
  

 11 

 the name of the Administrative Agent or its nominee at any time at the option of the Required Secured
Parties following the occurrence and during the continuance of an Default and without any further consent of such Grantor. 
  
 4.6.4 Exercise of Rights in Pledged Securities and other Investment Property. Each Grantor will permit the Administrative Agent or
its nominee at any time after the continuance of a Default, without notice, to exercise or refrain from exercising any and all voting and other consensual rights pertaining to the Collateral owned by such Grantor or any part thereof, and to receive
all dividends and interest in respect of such Collateral. 
  
 4.7.
Deposit Accounts. Each Grantor will (i) upon the Administrative Agent’s request, use all commercially reasonable efforts to cause each bank or other financial institution in which it maintains (a) a Deposit Account to enter into a
control agreement with the Administrative Agent, in form and substance satisfactory to the Administrative Agent in order to give the Administrative Agent Control of the Deposit Account or (b) other deposits (general or special, time or demand,
provisional or final) to be notified of the security interest granted to the Administrative Agent hereunder and cause each such bank or other financial institution to acknowledge such notification in writing and (ii) upon the Administrative
Agent’s request after the occurrence and during the continuance of a Default, deliver to each such bank or other financial institution a letter, in form and substance acceptable to the Administrative Agent, transferring ownership of the Deposit
Account to the Administrative Agent or transferring dominion and control over each such other deposit to the Administrative Agent until such time as no Default exists. In the case of deposits maintained with Lenders, the terms of such letter shall
be subject to the provisions of the Credit Agreement regarding setoffs. Notwithstanding the foregoing, the terms of this Section 4.7 shall not apply to deposit accounts specifically and exclusively used for payroll, payroll taxes and other
employee wage and benefit payments (including workers’ compensation payments) to or for the benefit of Grantor’s salaried employees. 
  
 4.8. Letter-of-Credit Rights. Each Grantor will, upon the Administrative Agent’s request, use commercially reasonable efforts to cause each
issuer of a letter of credit, to consent to the assignment of proceeds of such letter of credit in order to give the Administrative Agent Control of the letter-of-credit rights to such letter of credit. Notwithstanding the foregoing, so long as no
Default has occurred and is continuing, this Section 4.8 shall not apply to any letters of credit with a stated amount less than $100,000. 
  
 4.9. Federal, State or Municipal Claims. Each Grantor will notify the Administrative Agent of any Collateral owned by such Grantor which
constitutes a claim against the United States government or any state or local government or any instrumentality or agency thereof, the assignment of which claim is restricted by federal, state or municipal law, other than sales in the ordinary
course of business. 
  
 4.10. Intellectual Property. If,
after the date hereof, any Grantor obtains rights to, or applies for or seeks registration of, any new patentable invention, trademark or copyright in addition to the patents, trademarks and copyrights described in Exhibit B, which are all of
such Grantor’s patents, trademarks and copyrights as of the Closing Date, then such Grantor shall give the Administrative Agent notice thereof as part of the compliance certificate provided to the 
  

 12 

 Agent pursuant to Section 6.1.3 of the Credit Agreement, and the security interest granted to the Administrative Agent
hereunder shall automatically apply thereto. Each Grantor agrees promptly upon request by the Administrative Agent to execute and deliver to the Administrative Agent any supplement to this Security Agreement or any other document reasonably
requested by the Administrative Agent to evidence such security interest in a form appropriate for recording in the applicable federal office. Each Grantor also hereby authorizes the Administrative Agent to modify this Security Agreement
unilaterally (i) by amending Exhibit B to include any future patents, trademarks and/or copyrights of which the Administrative Agent receives notification from such Grantor pursuant hereto and (ii) by recording, in addition to and not in
substitution for this Security Agreement, a duplicate original of this Security Agreement containing in Exhibit B a description of such future patents, trademarks and/or copyrights. 
  
 4.11. Commercial Tort Claims. If, after the date hereof, any Grantor identifies the existence of a commercial tort
claim belonging to such Grantor that has arisen in the course of such Grantor’s business in addition to the commercial tort claims described in Exhibit F, which are all of such Grantor’s commercial tort claims as of the Closing
Date, then such Grantor shall give the Administrative Agent notice thereof as part of the compliance certificate provided to the Agent pursuant to Section 6.1.3 of the Credit Agreement. Each Grantor agrees promptly upon request by the Administrative
Agent to execute and deliver to the Administrative Agent any supplement to this Security Agreement or any other document reasonably requested by the Administrative Agent to evidence the grant of a security interest therein in favor of the
Administrative Agent. 
  
 ARTICLE V 
  
 DEFAULT 
  
 5.1. Acceleration and Remedies. Upon the acceleration of the Secured Obligations under the Credit Agreement pursuant
to Section 8.1 thereof, the Obligations and, to the extent provided for under the Rate Management Transactions evidencing the same, the Rate Management Obligations, shall immediately become due and payable without presentment, demand, protest
or notice of any kind, all of which are hereby expressly waived, and the Administrative Agent may, with the concurrence or at the direction of the Required Secured Parties, exercise any or all of the following rights and remedies: 
  
 5.1.1 Those rights and remedies provided in this Security
Agreement, the Credit Agreement, or any other Loan Document, provided that this Section 5.2.1 shall not be understood to limit any rights or remedies available to the Administrative Agent and the Holders of Secured Obligations prior to
a Default. 
  
 5.1.2 Those rights and remedies
available to a secured party under the Ohio UCC (whether or not the Ohio UCC applies to the affected Collateral) or under any other applicable law (including, without limitation, any law governing the exercise of a bank’s right of setoff or
bankers’ lien) when a debtor is in default under a security agreement. 
  
 5.1.3 Without notice except as specifically provided in Section 8.1 hereof or elsewhere herein, sell, lease, assign, grant an option or options to purchase or otherwise 
  

 13 

 dispose of the Collateral or any part thereof in one or more parcels at public or private sale, for cash,
on credit or for future delivery, and upon such other terms as the Administrative Agent may deem commercially reasonable. 
  
 The Administrative Agent, on behalf of the Holders of Secured Obligations, may comply with any applicable state or federal law requirements in connection with a
disposition of the Collateral, and such compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral. 
  
 If, after the Credit Agreement has terminated by its terms and all of the Obligations have been paid in full, there remain Rate Management Obligations outstanding, the
Required Secured Parties may exercise the remedies provided in this Section 5.2 upon the occurrence of any event which would allow or require the termination or acceleration of any Rate Management Obligations pursuant to the terms of the
agreement governing any Rate Management Transaction. 
  
 5.2.
Grantors’ Obligations Upon Default. Upon the request of the Administrative Agent after the occurrence and continuance of a Default, each Grantor will: 
  
 5.2.1 Assembly of Collateral. Assemble and make available to the Administrative Agent the Collateral
and all records relating thereto at any place or places specified by the Administrative Agent. 
  
 5.2.2 Secured Party Access. Permit the Administrative Agent, by the Administrative Agent’s representatives and agents, to
enter any premises where all or any part of the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral and to remove all or any part of the Collateral. 
  
 5.3. License. The Administrative Agent, for the benefit of the Holders
of Secured Obligations, is hereby granted a license or other right to use, following the occurrence and during the continuance of a Default, without charge, each Grantor’s labels, patents, copyrights, rights of use of any name, trade secrets,
trade names, trademarks, service marks, customer lists and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral, and, following the
occurrence and during the continuance of a Default, such Grantor’s rights under all licenses and all franchise agreements shall inure to the Administrative Agent’s and the Holders of Secured Obligations’ benefit. In addition, each
Grantor hereby irrevocably agrees that the Administrative Agent may, following the occurrence and during the continuance of a Default, sell any of such Grantor’s Inventory directly to any person, including without limitation persons who have
previously purchased such Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Administrative Agent’s rights under this Security Agreement, may sell Inventory which bears any trademark
owned by or licensed to such Grantor and any Inventory that is covered by any copyright owned by or licensed to such Grantor and the Administrative Agent may finish any work in process and affix any trademark owned by or licensed to such Grantor and
sell such Inventory as provided herein. 
  

 14 

 ARTICLE VI 
  
 WAIVERS, AMENDMENTS AND REMEDIES 
  
 No delay or omission of the Administrative Agent or any Holder of Secured Obligations to exercise any right or remedy granted under this Security
Agreement shall impair such right or remedy or be construed to be a waiver of any Default or an acquiescence therein, and any single or partial exercise of any such right or remedy shall not preclude any other or further exercise thereof or the
exercise of any other right or remedy. No waiver, amendment or other variation of the terms, conditions or provisions of this Security Agreement whatsoever shall be valid unless in writing signed by the Administrative Agent with the concurrence or
at the direction of the Lenders required under Section 8.2 of the Credit Agreement and each Grantor, and then only to the extent in such writing specifically set forth, provided that the addition of any Domestic Subsidiary as a Grantor hereunder by
execution of a Security Agreement Supplement in the form of Annex I (with such modifications as shall be acceptable to the Administrative Agent) shall not require receipt of any consent from or execution of any documentation by any other Grantor
party hereto. All rights and remedies contained in this Security Agreement or by law afforded shall be cumulative and all shall be available to the Administrative Agent and the Holders of Secured Obligations until the Secured Obligations have been
paid in full. 
  
 ARTICLE VII 
  
 PROCEEDS; COLLECTION OF RECEIVABLES 
  
 7.1. Lockboxes. Upon request of the Administrative Agent after the
occurrence and during the continuance of a Default or Unmatured Default, each Grantor shall execute and deliver to the Administrative Agent irrevocable lockbox agreements in the form provided by or otherwise acceptable to the Administrative Agent,
which agreements shall be accompanied by an acknowledgment by the bank where the lockbox is located of the Lien of the Administrative Agent granted hereunder and of irrevocable instructions to wire all amounts collected therein to a special
collateral account at the Administrative Agent. 
  
 7.2.
Collection of Receivables. The Administrative Agent may at any time after the occurrence and during the continuance of a Default, by giving each Grantor written notice, elect to require that the Receivables be paid directly to the
Administrative Agent for the benefit of the Holders of Secured Obligations. In such event, each Grantor shall, and shall permit the Administrative Agent to, promptly notify the account debtors or obligors under the Receivables owned by such Grantor
of the Administrative Agent’s interest therein and direct such account debtors or obligors to make payment of all amounts then or thereafter due under such Receivables directly to the Administrative Agent. Upon receipt of any such notice from
the Administrative Agent, each Grantor shall thereafter hold in trust for the Administrative Agent, on behalf of the Holders of Secured Obligations, all amounts and proceeds received by it with respect to the Receivables and Other Collateral and
immediately and at all times thereafter deliver to the Administrative Agent all such amounts and proceeds in the same form as so received, whether by cash, check, draft or otherwise, with any necessary endorsements. The Administrative Agent shall
hold and apply funds so received as provided by the terms of Sections 7.3 and 7.4 hereof. 
  

 15 

 7.3. Special Collateral Account. Following the occurrence and continuance of a Default, the
Administrative Agent may require all cash proceeds of the Collateral to be deposited in a special non-interest bearing cash collateral account with the Administrative Agent and held there as security for the Secured Obligations. No Grantor shall
have any control whatsoever over said cash collateral account. The Administrative Agent may (and shall, at the direction of the Required Secured Parties), from time to time, apply the collected balances in said cash collateral account to the payment
of the Secured Obligations whether or not the Secured Obligations shall then be due. 
  
 7.4. Application of Proceeds. Upon the occurrence and continuance of a Default, the proceeds of the Collateral shall be applied by the Administrative Agent to payment of the Secured Obligations in the following
order unless a court of competent jurisdiction shall otherwise direct: 
  
 (a) FIRST, to payment of all costs and expenses of the Administrative Agent incurred in connection with the collection and enforcement of the Secured Obligations or of the security interest granted to the
Administrative Agent pursuant to this Security Agreement; 
  
 (b) SECOND, to payment of that portion of the Secured Obligations constituting accrued and unpaid interest and fees, pro rata among the Lenders in accordance with the amount of such accrued and unpaid interest and
fees owing to each of them; 
  
 (c) THIRD, to
payment of the principal of the Secured Obligations and the net early termination payments and any other Rate Management Obligations then due and unpaid from the Borrower to any of the Lenders, pro rata among the Lenders in accordance with the
amount of such principal and such net early termination payments and other Rate Management Obligations then due and unpaid owing to each of them; 
  
 (d) FOURTH, to payment of any Secured Obligations (other than those listed above) pro rata among those parties to whom such Secured
Obligations are due in accordance with the amounts owing to each of them; and 
  
 (e) FIFTH, the balance, if any, after all of the Secured Obligations have been satisfied, shall be distributed by the Administrative Agent to the applicable Grantor or at its direction. 
  
 ARTICLE VIII 
  
 GENERAL PROVISIONS 
  
 8.1. Notice of Disposition of Collateral; Condition of Collateral. Each Grantor hereby waives notice of the time and place of any public sale or
the time after which any private sale or other disposition of all or any part of the Collateral may be made. To the extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to the Borrower,
addressed as set forth in Article IX, at least ten days prior to (i) the date of any such public sale or (ii) the time after which any such private sale or other disposition may be made. Administrative Agent shall have no obligation to clean-up or
otherwise prepare the Collateral for sale. 
  

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 8.2. Compromises and Collection of Collateral. Each Grantor and the Administrative Agent recognize
that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become uncollectible in whole or in part and that the expense and probability of
success in litigating a disputed Receivable may exceed the amount that reasonably may be expected to be recovered with respect to a Receivable. In view of the foregoing, each Grantor agrees that the Administrative Agent may at any time and from time
to time, if a Default has occurred and is continuing, compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Administrative Agent in its sole discretion shall determine or abandon any Receivable,
and any such action by the Administrative Agent shall be commercially reasonable so long as the Administrative Agent acts in good faith based on information known to it at the time it takes any such action. 
  
 8.3. Secured Party Performance of Grantor’s Obligations. Without
having any obligation to do so, the Administrative Agent may perform or pay any obligation which any Grantor has agreed to perform or pay in this Security Agreement and such Grantor shall reimburse the Administrative Agent for any reasonable amounts
paid by the Administrative Agent pursuant to this Section 8.3. Each Grantor’s obligation to reimburse the Administrative Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand. 
  
 8.4. Authorization for Administrative Agent to Take Certain Action.
Each Grantor irrevocably authorizes the Administrative Agent at any time and from time to time in the sole discretion of the Administrative Agent and appoints the Administrative Agent as its attorney in fact (i) to file financing statements
necessary or desirable in the Administrative Agent’s sole discretion to perfect and to maintain the perfection and priority of the Administrative Agent’s security interest in the Collateral, (ii) upon the occurrence and during the
continuation of a Default, to indorse and collect any cash proceeds of the Collateral, (iii) to file a carbon, photographic or other reproduction of this Security Agreement or any financing statement with respect to the Collateral as a financing
statement and to file any other financing statement or amendment of a financing statement (which does not add new collateral or add a debtor) in such offices as the Administrative Agent in its sole discretion deems necessary or desirable to perfect
and to maintain the perfection and priority of the Administrative Agent’s security interest in the Collateral, (iv) upon the occurrence and during the continuation of a Default, to contact and enter into one or more agreements with the issuers
of uncertificated securities which are Collateral owned by such Grantor and which are Securities or with financial intermediaries holding other Investment Property as may be necessary or advisable to give the Administrative Agent Control over such
Securities or other Investment Property, (v) upon the occurrence and during the continuation of a Default, subject to the terms of the Credit Agreement, to enforce payment of the Instruments, Accounts and Receivables in the name of the
Administrative Agent or such Grantor, (vi) upon the occurrence and during the continuation of a Default, to apply the proceeds of any Collateral received by the Administrative Agent to the Secured Obligations as provided in Article VII and (vii)
upon the occurrence and during the continuation of a Default, to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except for such Liens as are specifically permitted hereunder or under any other Loan Document), and
each Grantor agrees to 
  

 17 

 reimburse the Administrative Agent on demand for any reasonable payment made or any reasonable expense incurred by the
Administrative Agent in connection therewith, provided that this authorization shall not relieve any Grantor of any of its obligations under this Security Agreement or under the Credit Agreement. 
  
 8.5. Specific Performance of Certain Covenants. Each Grantor
acknowledges and agrees that a breach of any of the covenants contained in Sections 4.1.5, 4.1.6, 4.4, 5.3, or 8.7 or in Article VII hereof will cause irreparable injury to the Administrative Agent and the Holders
of Secured Obligations, that the Administrative Agent and Holders of Secured Obligations have no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the Administrative Agent or the Holders of
Secured Obligations to seek and obtain specific performance of other obligations of the Grantors contained in this Security Agreement, that the covenants of the Grantors contained in the Sections referred to in this Section 8.5 shall be
specifically enforceable against the Grantors. 
  
 8.6. Use and
Possession of Certain Premises. Upon the occurrence and during the continuance of a Default, the Administrative Agent shall be entitled to occupy and use any premises owned or leased by the Grantors where any of the Collateral or any records
relating to the Collateral are located until the Secured Obligations are paid or the Collateral is removed therefrom, whichever first occurs, without any obligation to pay any Grantor for such use and occupancy. 
  
 8.7. Dispositions Not Authorized. No Grantor is authorized to sell or
otherwise dispose of the Collateral except as set forth in Section 4.1.5 hereof and notwithstanding any course of dealing between any Grantor and the Administrative Agent or other conduct of the Administrative Agent, no authorization to sell
or otherwise dispose of the Collateral (except as set forth in Section 4.1.5 hereof) shall be binding upon the Administrative Agent or the Holders of Secured Obligations unless such authorization is in writing signed by the Administrative
Agent with the consent or at the direction of the Required Lenders. 
  
 8.8. Benefit of Agreement. The terms and provisions of this Security Agreement shall be binding upon and inure to the benefit of the Grantors, the Administrative Agent and the Holders of Secured Obligations and their respective
successors and assigns (including all persons who become bound as a debtor to this Security Agreement), except that the Grantors shall not have the right to assign their rights or delegate their obligations under this Security Agreement or any
interest herein, without the prior written consent of the Administrative Agent. 
  
 8.9. Survival of Representations. All representations and warranties of the Grantors contained in this Security Agreement shall survive the execution and delivery of this Security Agreement. 
  
 8.10. Headings. The title of and section headings in this Security
Agreement are for convenience of reference only, and shall not govern the interpretation of any of the terms and provisions of this Security Agreement. 
  
 8.11. Termination. This Security Agreement shall continue in effect (notwithstanding the fact that from time to time there may be no Secured
Obligations outstanding) until (i) the 
  

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 Credit Agreement has terminated pursuant to its express terms and (ii) all of the Secured Obligations have been
indefeasibly paid and performed in full and no commitments of the Administrative Agent or the Holders of Secured Obligations which would give rise to any Secured Obligations are outstanding. 
  
 8.12. Entire Agreement. This Security Agreement embodies the entire
agreement and understanding between the Grantors and the Administrative Agent relating to the Collateral and supersedes all prior agreements and understandings between the Grantors and the Administrative Agent relating to the Collateral. 

 
 8.13. CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF OHIO (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. 
  
 8.14. Subordination of Intercompany Indebtedness. Each Grantor agrees
that any and all claims of such Grantor against any other Grantor (each an “Obligor”) with respect to any “Intercompany Indebtedness” (as hereinafter defined), any endorser, obligor or any other guarantor of all or any
part of the Secured Obligations, or against any of its properties shall be subordinate and subject in right of payment to the prior payment, in full and in cash, of all Secured Obligations, provided that, and not in contravention of the foregoing,
so long as no Default has occurred and is continuing, such Grantor may make loans to and receive payments in the ordinary course with respect to such Intercompany Indebtedness from each such Obligor to the extent not prohibited by the terms of this
Security Agreement and the other Loan Documents. Notwithstanding any right of any Grantor to ask, demand, sue for, take or receive any payment from any Obligor, all rights, liens and security interests of such Grantor, whether now or hereafter
arising and howsoever existing, in any assets of any other Obligor shall be and are subordinated to the rights of the Holders of Secured Obligations and the Administrative Agent in those assets. No Grantor shall have any right to possession of any
such asset or to foreclose upon any such asset, whether by judicial action or otherwise, unless and until all of the Secured Obligations (other than contingent indemnity obligations) shall have been fully paid and satisfied (in cash) and all
Commitments and Facility LCs issued under the Credit Agreement have terminated or expired. After the occurrence and during the continuance of a Default, if all or any part of the assets of any Obligor, or the proceeds thereof, are subject to any
distribution, division or application to the creditors of such Obligor, whether partial or complete, voluntary or involuntary, and whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of creditors or
any other action or proceeding, or if the business of any such Obligor is dissolved or if substantially all of the assets of any such Obligor are sold, then, and in any such event (such events being herein referred to as an “Insolvency
Event”), any payment or distribution of any kind or character, either in cash, securities or other property, which shall be payable or deliverable upon or with respect to any indebtedness of any Obligor to any Grantor (“Intercompany
Indebtedness”) shall be paid or delivered directly to the Administrative Agent for application on any of the Secured Obligations, due or to become due, until such Secured Obligations (other than contingent indemnity obligations) shall have
first been fully paid and satisfied (in cash). Should any payment, distribution, security or instrument or proceeds thereof be received by the applicable Grantor upon or with respect to the Intercompany 
  

 19 

 Indebtedness after any Insolvency Event and prior to the satisfaction of all of the Secured Obligations (other than
contingent indemnity obligations) and the termination or expiration of all Commitments of the Lenders and Facility LCs issued pursuant to the Credit Agreement, such Grantor shall receive and hold the same in trust, as trustee, for the benefit of the
Holders of Secured Obligations and shall forthwith deliver the same to the Administrative Agent, for the benefit of the Holders of Secured Obligations, in precisely the form received (except for the endorsement or assignment of the Grantor where
necessary), for application to any of the Secured Obligations, due or not due, and, until so delivered, the same shall be held in trust by the Grantor as the property of the Holders of Secured Obligations. If any such Grantor fails to make any such
endorsement or assignment to the Administrative Agent, the Administrative Agent or any of its officers or employees is irrevocably authorized to make the same. Each Grantor agrees that until the Secured Obligations (other than the contingent
indemnity obligations) have been paid in full (in cash) and satisfied and all Commitments and Facility LCs issued under the Credit Agreement have terminated or expired, no Grantor will assign or transfer to any Person (other than the Administrative
Agent or the Borrower or another Grantor) any claim any such Grantor has or may have against any Obligor. 
  
 8.15. Specified Assets. Upon written notice of any sale or disposition of any Specified Asset, the Administrative Agent agrees to promptly release
its Lien on such Specified Asset. 
  
 ARTICLE IX 
  
 NOTICES 
  
 9.1. Sending Notices. Any notice required or permitted to be given under this Security Agreement shall be sent (and
deemed received) in the manner and to the addresses set forth in Article XIII of the Credit Agreement; and any such notice delivered to the Borrower shall be deemed to have been delivered to all of the Grantors. 
  
 9.2. Change in Address for Notices. Each of the Grantors, the
Administrative Agent and the Lenders may change the address for service of notice upon it by a notice in writing to the other parties. 
  
 ARTICLE X 
  
 THE ADMINISTRATIVE AGENT 
  
 Bank One, NA (Main Office Columbus) has been appointed Administrative Agent for the Holders of Secured Obligations hereunder pursuant to Article X of the Credit Agreement. It is expressly understood and agreed by the
parties to this Security Agreement that any authority conferred upon the Administrative Agent hereunder is subject to the terms of the delegation of authority made by the Holders of Secured Obligations to the Administrative Agent pursuant to the
Credit Agreement, and that the Administrative Agent has agreed to act (and any successor Administrative Agent shall act) as such hereunder only on the express conditions contained in such Article X. Any successor Administrative Agent
appointed pursuant to Article X of the Credit Agreement shall be entitled to all the rights, interests and benefits of the Administrative Agent hereunder. 
  

 20 

 [SIGNATURE PAGES TO FOLLOW] 
  

 21 

 IN WITNESS WHEREOF, each of the Grantors and the Administrative Agent have executed this Security
Agreement as of the date first above written. 
  

							
	 ABX AIR, INC., as a Grantor
	 	SOUND SUPPRESSION, INC., as a Grantor
				
	By:	 	  

	 	By:	 	  

	Name:	 	Name:
	Title:	 	Title:
		
	AIRBORNE F T Z, INC., as a Grantor	 	BANK ONE, NA (MAIN OFFICE COLUMBUS), as Administrative Agent
				
	By:	 	  

	 	By:	 	  

	Name:	 	Name:
	Title:	 	Title:

  
  

 SIGNATURE PAGE TO PLEDGE AND
SECURITY AGREEMENT 

 ANNEX I 
  
 to 
  
 SUBSIDIARY 
  
 SECURITY AGREEMENT 
  
 Reference is hereby made to the
Subsidiary Security Agreement (the “Agreement”), dated as of March 31, 2004, made by each of ABX AIR, INC., a Delaware corporation (the “Borrower”), SOUND SUPPRESSION, INC. (“SSI”), an Ohio
corporation, AIRBORNE F T Z, INC., an Ohio corporation (each an “Initial Grantor”, and together with any additional Domestic Subsidiaries, including the undersigned, which become parties thereto by executing a Supplement in substantially
the form hereof, the “Grantors”), in favor of the Administrative Agent. Capitalized terms used herein and not defined herein shall have the meanings given to them in the Agreement. By its execution below, the undersigned, [NAME OF
NEW GRANTOR], a [            ] [corporation/limited liability company] agrees to become, and does hereby become, a Grantor under the Agreement and agrees to be bound by such
Agreement as if originally a party thereto. By its execution below, the undersigned represents and warrants as to itself that all of the representations and warranties contained in the Agreement are true and correct in all respects as of the date
hereof. [NAME OF NEW GRANTOR] represents and warrants that the supplements to the Exhibits to the Agreement attached hereto are true and correct in all respects and such supplements set forth all information required to be scheduled under the
Agreement. [NAME OF NEW GRANTOR] shall take all steps necessary to perfect, in favor of the Administrative Agent, a first-priority security interest in and lien against [NAME OF NEW GRANTOR]’s Collateral, including, without limitation,
delivering all certificated Securities to the Administrative Agent, and taking all steps necessary to properly perfect the Administrative Agent’s interest in any uncertificated equity or membership interests. 
  
 IN WITNESS WHEREOF, [NAME OF NEW GRANTOR], a
[            ] [corporation/limited liability company] has executed and delivered this Annex I counterpart to the Agreement as of this      day of
            ,             . 
  

			
	 [NAME OF NEW GRANTOR]

		
	 By:
	 	  

	 Title:
	 	  

  

 1

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