Document:

EX-10.1

 Exhibit 10.1 

FIRST AMENDED AND RESTATED 

OPERATING AGREEMENT OF 
 CONTRAIL
AVIATION SUPPORT, LLC 
 (A North Carolina limited liability company) 

DATED: Effective as of July 18, 2016 
 THE
LLC MEMBERSHIP INTERESTS REPRESENTED BY THIS OPERATING AGREEMENT HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE NORTH CAROLINA SECURITIES ACT, OR SIMILAR LAWS OR ACTS
OF OTHER STATES IN RELIANCE UPON EXEMPTIONS UNDER THOSE ACTS. THE SALE OR OTHER DISPOSITION OF THE MEMBERSHIP INTERESTS IS RESTRICTED AS STATED IN THIS OPERATING AGREEMENT, AND IN ANY EVENT IS PROHIBITED UNLESS THE LLC RECEIVES SATISFACTORY EVIDENCE
THAT SUCH SALE OR OTHER DISPOSITION CAN BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES ACTS AND LAWS. BY ACQUIRING THE MEMBERSHIP INTEREST REPRESENTED BY THIS OPERATING AGREEMENT, THE
MEMBER REPRESENTS THAT IT WILL NOT SELL OR OTHERWISE DISPOSE OF ITS MEMBERSHIP INTERESTS WITHOUT REGISTRATION OR OTHER COMPLIANCE WITH THIS OPERATING AGREEMENT, THE AFORESAID ACTS AND THE RULES AND REGULATIONS ISSUED THEREUNDER. 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	ARTICLE I	  			
	- FORMATION OF THE COMPANY	  			
			
	 1.1
	 	Formation	  	 	1	  
	 1.2
	 	Name	  	 	1	  
	 1.3
	 	Defined Terms	  	 	1	  
	 1.4
	 	Registered Office and Registered Agent; Principal Office	  	 	1	  
	 1.5
	 	Purposes and Scope	  	 	1	  
	 1.6
	 	Conflict with the Articles of Organization	  	 	2	  
	 1.7
	 	Nature of Members’ Interests	  	 	2	  
		
	ARTICLE II	  			
	- MEMBER INFORMATION; CAPITALIZATION	  			
			
	 2.1
	 	Membership Interests as Units; Members	  	 	2	  
	 2.2
	 	Initial Capital Contributions	  	 	2	  
	 2.3
	 	Additional Capital Contributions	  	 	2	  
	 2.4
	 	No Interest on Capital Contributions	  	 	2	  
	 2.5
	 	Debt Capital	  	 	2	  
	 2.6
	 	Capital Accounts	  	 	3	  
	 2.7
	 	Adjustments to Capital Accounts	  	 	3	  
	 2.8
	 	Issuances of Units to Third Parties	  	 	4	  
	 2.9
	 	Proposed Regulations Election	  	 	4	  
	 2.10
	 	Tax and Accounting Matters	  	 	4	  
		
	ARTICLE III	  			
	- ALLOCATIONS, ELECTIONS AND REPORTS	  			
			
	 3.1
	 	Profits and Losses	  	 	4	  
	 3.2
	 	Nonrecourse Deductions	  	 	4	  
	 3.3
	 	Member Nonrecourse Deductions	  	 	5	  
	 3.4
	 	Allocations Between Transferor and Transferee	  	 	5	  
	 3.5
	 	Contributed Property	  	 	5	  
	 3.6
	 	Minimum Gain Chargeback	  	 	5	  
	 3.7
	 	Member Minimum Gain Chargeback	  	 	6	  
	 3.8
	 	Qualified Income Offset	  	 	6	  
	 3.9
	 	Gross Income Allocation	  	 	6	  
	 3.10
	 	Section 754 Adjustment	  	 	6	  
	 3.11
	 	Curative Allocations	  	 	7	  
	 3.12
	 	Compliance with Treasury Regulations	  	 	7	  
	 3.13
	 	Tax Withholding	  	 	7	  
		
	ARTICLE IV	  			
	- DISTRIBUTIONS	  			
			
	 4.1
	 	Distributions	  	 	7	  
	 4.2
	 	Tax Distributions	  	 	7	  
	 4.3
	 	Limitation Upon Distributions	  	 	8	  

							
	ARTICLE V	  			
	- MANAGEMENT OF THE COMPANY	  			
			
	 5.1
	 	Role of Managers	  	 	8	  
	 5.2
	 	Number and Qualification	  	 	8	  
	 5.3
	 	Appointment and Removal of Managers; Resignation	  	 	8	  
	 5.4
	 	Action by the Managers	  	 	9	  
	 5.5
	 	Action Without Meeting	  	 	9	  
	 5.6
	 	Officers	  	 	9	  
	 5.7
	 	Operating Plan and Budgets	  	 	10	  
	 5.8
	 	Indemnification	  	 	10	  
	 5.9
	 	Limitation of Liability	  	 	11	  
		
	ARTICLE VI	  			
	- RIGHTS AND OBLIGATIONS OF MEMBERS	  			
			
	 6.1
	 	No Management by Members	  	 	11	  
	 6.2
	 	Election of Managers	  	 	11	  
	 6.3
	 	Member Meetings	  	 	11	  
	 6.4
	 	Action by the Members	  	 	11	  
	 6.5
	 	Action Without Meeting	  	 	11	  
	 6.6
	 	Limited Liability	  	 	12	  
	 6.7
	 	Bankruptcy of a Member	  	 	12	  
	 6.8
	 	Affiliate Transactions	  	 	12	  
	 6.9
	 	Existing Agreements among Members and the Company	  	 	13	  
	 6.10
	 	Noncompetition; Confidentiality	  	 	13	  
		
	ARTICLE VII	  			
	- TRANSFER OF INTERESTS AND ADMISSION OF MEMBERS	  			
			
	 7.1
	 	Restrictions on Transfer	  	 	14	  
	 7.2
	 	Conditions Precedent to Transfers	  	 	15	  
	 7.3
	 	Substituted Members	  	 	15	  
	 7.4
	 	Rights of Transferee	  	 	15	  
	 7.5
	 	Tag-Along	  	 	15	  
	 7.6
	 	Drag-Along	  	 	16	  
		
	ARTICLE VIII	  			
	- PUT-CALL OPTIONS; OTHER PURCHASE EVENTS	  			
			
	 8.1
	 	Put-Call Options	  	 	17	  
	 8.2
	 	Purchase Events	  	 	19	  
	 8.3
	 	Purchase Notice	  	 	19	  
	 8.4
	 	Members’ Purchase Option	  	 	19	  
	 8.5
	 	Purchase Price For Withdrawing Member’s Units	  	 	19	  
	 8.6
	 	Closing	  	 	19	  
	 8.7
	 	Effect on Withdrawing Member’s Interest	  	 	20	  
		
	ARTICLE IX	  			
	- DISSOLUTION AND LIQUIDATION OF THE COMPANY	  			
			
	 9.1
	 	Dissolution Events	  	 	20	  
	 9.2
	 	Liquidation	  	 	20	  

  
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	ARTICLE X	  			
	- MISCELLANEOUS	  			
			
	 10.1
	 	Other Activities of Members and Managers	  	 	21	  
	 10.2
	 	Fiscal Year	  	 	21	  
	 10.3
	 	Records	  	 	21	  
	 10.4
	 	Notices	  	 	21	  
	 10.5
	 	Amendments	  	 	21	  
	 10.6
	 	Representations of Members	  	 	22	  
	 10.7
	 	Survival of Rights	  	 	22	  
	 10.8
	 	Governing Law	  	 	22	  
	 10.9
	 	Severability	  	 	22	  
	 10.10
	 	Agreement in Counterparts	  	 	22	  
	 10.11
	 	Tax Matters Partner	  	 	22	  
	 10.12
	 	Creditors Not Benefited	  	 	22	  
	 10.13
	 	Members’ Access to Information	  	 	22	  
		
	ARTICLE XI	  			
	- DEFINITIONS	  			
			
	 11.1
	 	Definitions	  	 	23	  

  
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 FIRST AMENDED AND RESTATED 

OPERATING AGREEMENT 
 OF

 CONTRAIL AVIATION SUPPORT, LLC 

THIS FIRST AMENDED AND RESTATED OPERATING AGREEMENT of CONTRAIL AVIATION SUPPORT, LLC, (the “Company”), is executed effective
as of July 18, 2016, by and among the Company and the persons executing this Agreement as the Members (as defined below). 
 ARTICLE
I- FORMATION OF THE COMPANY 
 1.1 Formation. The Company was formed on May 3, 2016 under, and shall be operated in
accordance with, the North Carolina Limited Liability Company Act, as amended (the “Act”). As the sole initial member of the Company, Air T executed a Limited Liability Company Operating Agreement for the Company effective as of
May 3, 2016. In connection with the closing of the transactions under the Asset Purchase Agreement and the Initial Capital contributions of the Members as set forth in Section 2.2, the Members and the Company are entering into this
Agreement, which amends, restates and replaces in its entirety the initial Limited Liability Company Operating Agreement of the Company. In consideration of the mutual promises and covenants contained herein, the parties hereto agree that the rights
and obligations of the parties and the administration and termination of the Company shall be governed by this Agreement, the Articles of Organization and the Act. 

1.2 Name. The name of the Company is Contrail Aviation Support, LLC, or such other name determined by the Managers. 

1.3 Defined Terms. Capitalized terms not otherwise defined in the text hereof shall have the meanings given to them in
ARTICLE XI. 
 1.4 Registered Office and Registered Agent; Principal Office. The Company registered agent and
registered office in the State of North Carolina shall be Air T, Inc., 3524 Airport Road, Maiden, NC 28650 or such other registered agent or registered office as the Managers may specify from time to time. The principal office of the Company shall
be maintained at such place as the Managers may designate from time to time. 
 1.5 Purposes and Scope. The purpose of the
Company shall be to engage in the business of acquiring surplus commercial jet engines or components and supplying surplus and aftermarket commercial jet engine components, and to engage in any other lawful business as determined by the Managers.
The Company shall not engage in any business or perform any services that require regulatory approval or licensing unless and until the Company (or its employees or agents, as applicable) has obtained all necessary approvals or licenses. 

 1.6 Conflict with the Articles of Organization. If this Agreement conflicts with the
Company’s Articles of Organization or the Act, this Agreement shall govern and control to the extent permitted by law. 

1.7 Nature of Members’ Interests. The interests of the Members in the Company shall be personal property for all purposes.
Legal title to all Company assets shall be held in the name of the Company. Neither any Member nor a successor, representative or assign of such Member, shall have any right, title or interest in or to any Company Property or the right to partition
any Property owned by the Company. 
 ARTICLE II- MEMBER INFORMATION; CAPITALIZATION 

2.1 Membership Interests as Units; Members. Each Membership Interest shall be represented by units (“Units”). The
names, addresses and Units of the Members are as reflected in Schedule I attached hereto and made a part hereof, which Schedule shall be amended by the Managers as of the effectiveness of any transfer or subsequent issuance of any Units in
accordance with the terms of this Agreement. Air T, the organizer of the Company as defined in Section 57D-1-03(24) of the Act, hereby identifies the Persons set forth as the “Members” in Schedule I as the initial Members of
the Company. 
 2.2 Initial Capital Contributions. Contemporaneously with the execution of this Agreement, the Members have
contributed capital to the Company in the amounts set forth as the Initial Capital Contribution opposite their names on Schedule I attached hereto (the “Initial Capital Contributions”) as follows: (i) Air T has made its
Initial Capital Contribution to the Company in cash and (ii) CAS has made its Initial Capital Contribution as a part of its transfer and assignment of its assets to the Company, pursuant to the Asset Purchase Agreement. 

2.3 Additional Capital Contributions. The Managers may request each Member to make Capital Contributions to the Company from
time to time in addition to the Initial Capital Contributions if all Members agree in writing to the need for additional Capital Contributions and the terms thereof. In such event, each Member shall have the right to contribute its pro-rata share
(based on their respective Units) of the requested Capital Contribution in cash or other immediately available funds within forty five (45) days of the capital call. No Member or other holder of Units shall be permitted to make additional
capital contributions to the Company without the consent of all Members. 
 2.4 No Interest on Capital Contributions.
No interest shall be paid on any contribution to the capital of the Company. 
 2.5 Debt Capital. In the event that the
Managers determine at any time (or from time to time) that additional funds are required by the Company for or in respect of its business over and above what can be secured through commercially reasonable efforts utilizing bank financing and if all
Members agree in writing to the need for additional Capital Contributions, then the Company, upon the Managers’ approval, may (i) borrow all or part of such additional funds, with interest payable at then-prevailing rates, from commercial
banks or other institutional or commercial lenders, and/or (ii) borrow all or part of such additional funds from the Members or one or more Affiliates of a Member at an interest rate of not less than 12% and otherwise on 

  
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terms and conditions as agreed between the lending Member or Members and the Managers and based on commercially reasonable terms under then-prevailing conditions. Each Member shall have the pro
rata right (based upon its Units) to make any such loans from the Members to the Company, with any unsubscribed rights being allocated among the Members willing to make such loans pro rata (based on their respective Units). Any loan by a Member to
the Company shall not be considered a capital contribution. Joseph G. Kuhn shall have the authority to act in a commercially reasonable manner to direct repayment of any loan authorized hereunder for so long as he remains a Member, it being
understood that a loan from any Member or Affiliate of a Member may not include a prepayment penalty. 
 2.6 Capital Accounts.
A capital account shall be established for each Member and shall be credited with each Member’s initial and additional Capital Contributions pursuant to this Article II. All contributions of Property to the Company by a Member shall be
valued and credited to the Member’s capital account at such Property’s Gross Asset Value on the date of contribution. All Distributions of Property to the Member by the Company shall be valued and debited against the Member’s capital
account at such Property’s Gross Asset Value on the date of Distribution. Each Member’s capital account shall at all times be determined and maintained pursuant to the principles of this Section 2.6 and Treasury Regulations Section 1.704-1(b)(2)(iv). Each Member’s capital account shall be increased in accordance with such Regulations by: 

(a) The amount of Profits allocated to the Member pursuant to this Agreement; and 

(b) The amount of any Company liabilities assumed by the Member or which are secured by any Company Property distributed to such Member. 

Each Member’s capital account shall be decreased in accordance with such Regulations by: 

(c) The amount of Losses allocated to the Member pursuant to this Agreement; 

(d) The amount of Distributions made to the Member pursuant to this Agreement; and 

(e) The amount of any liabilities of the Member assumed by the Company or which are secured by any Property contributed by such Member to the
Company. 
 In addition, each Member’s capital account shall be (i) increased or decreased by any items which are specially
allocated pursuant to Sections 3.2, 3.3, 3.6, 3.7, 3.8, 3.9, 3.10, or 3.11 hereof and (ii) subject to such other adjustments as may be required in order to comply with the capital account
maintenance requirements of Section 704(b) of the Code. 
 2.7 Adjustments to Capital Accounts. The Managers may, upon
the sale or issuance of Units, the vesting of Units, the making of additional capital contributions, or at such other times as are permitted by Treasury Regulations Section 1.704-1(b)(2)(iv), adjust the book value of the Company’s assets
pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(f) to reflect their then fair market value, and in such event the Capital Account of each Member shall be adjusted to reflect that Member’s share of unrealized gain or loss, as
provided in Section 2.6, as if such property had been sold for its then fair market value as determined by the Managers. 

  
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 2.8 Issuances of Units to Third Parties. At any time and from time to time, the
Members shall have the power and authority, by unanimous vote, to issue Units to any third-party that is not a Member or an Affiliate of a Member and admit such Person as a Member. The issuance of Units may be made in exchange for such cash,
property, or services, and on such other terms and conditions, as the Managers shall determine. A Person to whom Units have been issued shall not become a Member, with the rights and privileges associated therewith, until such Person becomes a party
to this Agreement. 
 2.9 Proposed Regulations Election. The Company and each current and future Member hereby agree,
pursuant to proposed Treasury Regulations § 1.83-3(e), Notice 2005-43, and all final or successor regulations, revenue procedures and similar authority, that (i) the Company is authorized and directed to elect the safe harbor under which
the fair market value of an interest in the Company that is issued in connection with the performance of services is treated as being equal to the liquidation value of that interest on or after the date such regulations become final, and
(ii) the Company and each Member, including any person to whom an interest in the Company is transferred in connection with the performance of services, agree to comply with all requirements of the safe harbor with respect to all interests
transferred in connection with the performance of services while the election remains effective. The Company shall prepare and execute such documents and retain such records as are required by the final regulations. In the discretion of the
Managers, the Company may at any time revoke such safe harbor election in such manner as the final regulations provide. 

2.10 Tax and Accounting Matters. All decisions as to tax and accounting matters, except as this Agreement specifically provides
otherwise, shall be made by the Managers, including the election to amortize organizational expenses over 60 months under Code Section 709, the method of accounting (cash or accrual) and whether to make an election under Code Section 754.

 ARTICLE III- ALLOCATIONS, ELECTIONS AND REPORTS 

3.1 Profits and Losses. 

(a) Except as otherwise provided in this Article III, Profits and Losses of the Company shall be allocated among the Members in
accordance with their respective Units. 
 (b) The Losses allocated pursuant to Section 3.1(a) shall not exceed the
maximum amount of Losses that can be so allocated without causing any Member to have an Adjusted Capital Account Deficit at the end of any Fiscal Year. In the event some, but not all, of the Members would have Adjusted Capital Account Deficits as a
consequence of an allocation of Losses pursuant to Section 3.1(a), the limitation set forth in this Section 3.1(b) shall be applied on a Member by Member basis so as to allocate the maximum permissible Losses to each Member
under Treasury Regulations Section 1.704-1(b)(2)(ii)(d). All Losses allocated pursuant to Section 3.1(a) shall be allocated to those Members who are eligible for such an allocation in proportion to their respective Units.

 3.2 Nonrecourse Deductions. Nonrecourse Deductions shall be allocated among the Members in accordance with their
respective Units. 

  
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 3.3 Member Nonrecourse Deductions. Any Member Nonrecourse Deductions shall be
specially allocated to the Member who bears the economic risk of loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance with Treasury Regulations Section 1.704-2(i).

 3.4 Allocations Between Transferor and Transferee. In the event of the transfer of all or any part of a Member’s
Units (in accordance with the provisions of this Agreement) at any time other than at the end of a Fiscal Year, or the admission of a new Member (in accordance with the terms of this Agreement), the Transferring Member or new Member’s share of
the Company’s income, gain, loss, deductions and credits, as computed for Federal income tax purposes, shall be allocated between the transferor Member and the transferee Member, or the new Member and the other Members, as the case may be, as
determined by the Managers in any manner that reasonably reflects the purpose and intention of this Agreement. 
 3.5
Contributed Property. In accordance with Code Section 704(c) and the Treasury Regulations thereunder, income, gain, loss and deduction with respect to any Property contributed to the capital of the Company shall, solely for tax purposes,
be allocated among the Members so as to take account of any variation between the adjusted basis of such Property to the Company for Federal income tax purposes and its initial Gross Asset Value at the time of contribution. 

In the event the Gross Asset Value of any Company asset is adjusted pursuant to the definition of Gross Asset Value hereof, subsequent
allocations of income, gain, loss, and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in the same manner as under Code
Section 704(c) and the Regulations thereunder. 
 Any elections or other decisions relating to such allocations shall be made by the
Managers in any manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant to this Section 3.5 are solely for purposes of federal, state and local taxes and shall not affect, or in any way be taken
into account in computing, any Member’s Capital Account or share of Profits, Losses, other items, or Distributions pursuant to any provision of this Agreement. 

3.6 Minimum Gain Chargeback. If there is a net decrease in Company Minimum Gain during any Fiscal Year, each Member shall be
specially allocated items of Company income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Member’s share of the net decrease in Company Minimum Gain, determined in accordance with Treasury Regulation
Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance
with Treasury Regulations Sections 1.704-2(f) and 1.704-2(j)(2). This Section 3.6 is intended to comply with the minimum gain chargeback requirement in Treasury Regulation 1.704-2(f) and shall be interpreted consistently therewith.

  
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 3.7 Member Minimum Gain Chargeback. If there is a net decrease in Member Minimum
Gain attributable to a Member Nonrecourse Debt, as defined in Treasury Regulation Section 1.704-2(i)(4), during any Fiscal Year, each Member who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt,
determined in accordance with Treasury Regulation Section 1.704-2(i)(5), shall be specially allocated items of Company income and gain for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount equal to such Member’s
share of the net decrease in Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Treasury Regulation Section 1.704-2(i)(4) and (5). Allocations pursuant to the previous sentence shall be made in
proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Treasury Regulations Section 1.704-2(i)(4). This Section 3.7 is
intended to comply with the Member Minimum Gain chargeback requirement in Treasury Regulation Section 1.704(i)(4) and shall be interpreted consistently therewith. 

3.8 Qualified Income Offset. If any Member unexpectedly receives an adjustment, allocation or distribution as described in
Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4) through (6) which causes or increases a deficit capital account balance in such Member’s capital account (as determined in accordance with such Regulation) items of Company income
and gain shall be specially allocated to each such Member in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the Adjusted Capital Account Deficit of such Member as quickly as possible, provided that an
allocation pursuant to this Section 3.8 shall be made if and only to the extent that such Member would have an Adjusted Capital Account Deficit after all other allocations provided for in this Article III have been tentatively
made as if this Section 3.8 were not in the Agreement. This provision is intended to be a “qualified income offset,” as defined in Treasury Regulation Section 1.704-1(b)(2)(ii)(d), such Regulation being specifically
incorporated herein by reference. 
 3.9 Gross Income Allocation. In the event any Member has a deficit Capital Account
at the end of any Company Fiscal Year which is in excess of the sum of (i) the amount such Member is obligated to restore, and (ii) the amount such Member is deemed to be obligated to restore pursuant to the penultimate sentences of
Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Member shall be specially allocated items of Company income and gain in the amount of such excess as quickly as possible, provided that an allocation pursuant to this
Section 3.9 shall be made if and only to the extent that such Member would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article III have been tentatively made as if this
Section 3.9 and Section 3.8 hereof were not in the Agreement. 
 3.10 Section 754
Adjustment. To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) or
Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as the result of a Distribution to a Member in complete liquidation of his interest in the Company, the amount of such adjustment to
the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Members in accordance with their
interests in the Company in the event that Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Members to whom such Distribution was made in the event that Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4)
applies. 

  
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 3.11 Curative Allocations. The allocations set forth in Sections 3.1(b),
3.2, 3.3, 3.6, 3.7, 3.8, 3.9, 3.10 hereof (the “Regulatory Allocations”) are intended to comply with certain requirements of the Treasury Regulations. It is the intent of the Members
that, to the extent possible, all Regulatory Allocations shall be offset either with other Regulatory Allocations or with special allocations of other items of Company income, gain, loss or deduction pursuant to this Section 3.11.
Therefore, notwithstanding any other provision of this Article III (other than the Regulatory Allocations), the Managers shall make such offsetting special allocations of Company income, gain, loss or deduction in whatever manner they
determine appropriate so that, after such offsetting allocations are made, each Member’s Capital Account balance is, to the extent possible, equal to the Capital Account balance such Member would have had if the Regulatory Allocations were not
part of the Agreement and all Company items were allocated pursuant to Section 3.1. In exercising their discretion under this Section 3.11, the Managers shall take into account future Regulatory Allocations under Sections
3.6 and 3.7 that, although not yet made, are likely to offset other Regulatory Allocations previously made under Sections 3.2 and 3.3. 

3.12 Compliance with Treasury Regulations. The above provisions of this Article III notwithstanding, it is
specifically understood that the Managers may make such elections, tax allocations and adjustments, including amendments to this Agreement, as the Managers deem necessary or appropriate to maintain to the greatest extent possible the validity of the
tax allocations set forth in this Agreement, particularly with regard to Treasury Regulations under Code § 704(b). 

3.13 Tax Withholding. The Company shall be authorized to pay, on behalf of any Member, any amounts to any federal, state or
local taxing authority, as may be necessary for the Company to comply with tax withholding provisions of the Code or applicable state statutes or other income tax or revenue laws of any taxing authority. To the extent the Company pays any such
amounts that it may be required to pay on behalf of a Member, such amounts shall be treated as a cash Distribution to such Member and shall reduce the amount otherwise distributable to such Member. 

ARTICLE IV- DISTRIBUTIONS 

4.1 Distributions. Subject to Section 4.2 below, the Company’s cash and other available assets may be
distributed, retained or reinvested as determined by the Managers. At such times as are determined by the Managers, Distributions will be made to the Members pro rata in proportion to their respective Units. 

4.2 Tax Distributions. 

The Managers shall distribute to each Member, with respect to each calendar year, in an amount not less than the product of (i) the
Applicable Tax Rate, as hereinafter defined, for such calendar year multiplied by (ii) such Member’s proportionate pass through share of the taxable income of the Company, if any, for such year (for this purpose all items of income, gain,
loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income). The distributions to be made with respect to a calendar year shall be made in four installments, each payable by the
Company on or before the date on which quarterly 

  
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estimated tax payments are due for federal and state income tax purposes (provided that with respect to the estimated tax payment due January 15 of each year, a partial distribution shall be
made prior to December 31 for Wisconsin income tax purposes) and each distribution to a Member shall be an amount equal to the Applicable Tax Rate multiplied by an amount reasonably estimated by the Company’s accountant as being such
Member’s proportionate pass through share of the taxable income of the Company for the period to which such distribution relates. If the sum of the quarterly distributions paid to a Member for a calendar year are less than the Applicable Tax
Rate multiplied by such Member’s proportionate pass through share of the taxable income of the Company for such calendar year, the Company shall distribute to such Member an amount equal to such deficit prior to April 1 in the following
calendar year. The “Applicable Tax Rate” for a calendar year shall be the combined highest marginal federal and the highest state income tax applicable to any Member’s individual income tax rates that apply for such calendar
year, treating such Member as if such Member were a resident and taking into account the deductibility of state income tax payments for federal income tax purposes. 

4.3 Limitation Upon Distributions. No Distribution shall be declared and paid if payment of such Distribution would cause the
Company to violate any limitation on distributions provided in the Act or other applicable law or result in a default or event of default under any agreement or instrument governing the terms of indebtedness for borrowed money to which the Company
is a party at the time of the proposed distribution. 
 ARTICLE V- MANAGEMENT OF THE COMPANY 

5.1 Role of Managers. Except to the extent otherwise expressly required by this Agreement or the Act, the Managers shall have
full, exclusive and complete authority to manage the affairs of the Company. No Manager, acting in his capacity as a Manager, shall be entitled to sign for or take any action individually on behalf of the Company without being authorized by the
Managers. 
 5.2 Number and Qualification. The number of Managers shall be five unless altered as otherwise provided
herein; provided that (x) no such change in the number of Managers shall negate the right of any Member to appoint Managers as provided in Section 5.3 without the consent of such affected Member and (y) if any
Member’s right to appoint a Manager pursuant to Section 5.3 is terminated, the number of Managers shall automatically be reduced accordingly. Managers need not be Members and need not be residents of the State of North Carolina.

 5.3 Appointment and Removal of Managers; Resignation. 

(a) The Company shall have five Managers, four designated by Air T and one designated by CAS. The initial Managers designated by Air T shall be
Nick Swenson, Candice Otey, Andrew Osborne, and Seth Barkett. The initial Manager designated by CAS shall be Joseph Kuhn. If any Member ceases to be a Member, the Managers appointed by such Member shall be automatically removed at the time such
Member ceases to be a Member and the Managers designated by the remaining Member shall be the sole Managers of the Company. 

  
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 (b) A Member shall have the power to remove and/or replace (to the extent applicable) at any time
any one or more of the Managers designated by such Member. 
 (c) A Person may resign as a Manager at any time by delivering written notice
to all Members. Additionally, a Person shall cease to be a Manager upon his death or incapacity (if an individual), dissolution (if a legal entity), resignation, removal, or the occurrence of any event that terminates the appointment right of the
Member who appointed such Manager. 
 5.4 Action by the Managers. Each Manager shall have one vote. The affirmative vote of a
majority of all of the Managers (regardless of the number of Managers in attendance at any meeting of the Managers) shall be the act of the Managers hereunder and for purposes of the Act. As used in this Agreement, the phrases “the approval
of the Managers,” “the consent of the Managers,” “as determined by the Managers” and similar phrases mean the approval as set forth in the preceding sentence, except as expressly provided otherwise in this
Agreement. 
 5.5 Action Without Meeting. The Managers may act without a meeting if one or more written consents, describing
the action to be taken, is provided to each Manager for consideration at least 24 hours before requesting the Managers to act upon same, and signed by those Managers having the requisite authority to approve such action. The 24-hour notice
requirement hereunder may be waived by unanimous written consent of the Managers. 
 5.6 Officers. 

(a) The Managers may from time to time appoint and delegate to one or more individuals (each an “Officer”) any portion of
authority granted to the Managers hereunder as the Managers deem appropriate. No such delegation shall relieve the Managers of their duties and obligations, or limit the authority of the Managers, set forth herein. Each Officer shall hold office
until such Officer’s death, incapacity, resignation or removal or until the appointment of a successor. A Person may be removed as an Officer with the consent of the Managers at any time with or without cause (but subject to the provisions of
any applicable employment agreement). A Person may resign as an Officer at any time by delivering written notice to all Managers. 
 (b) The
initial Officers of the Company shall consist of a Chief Executive Officer and a Chief Financial Officer. The Company may also have one or more Vice Presidents, a Treasurer, a Secretary and such other Officers and assistant Officers as the Managers
shall determine. Any two or more offices may be held by the same individual, but no Officer may act in more than one capacity where action of two or more Officers is required. The following Officers shall have the authority and responsibilities set
forth below: 
 (i) Chief Executive Officer. The Chief Executive Officer shall be the principal officer of the
Company and, subject to the control of the Managers, shall generally supervise and control the business and affairs of the Company. He or she shall sign, with the Secretary, or any other proper Officer of the Company thereunto authorized by the
Managers, any deeds, mortgages, bonds, contracts, or other instruments that the Managers have authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Managers or by this Agreement to
some other Officer or agent of the Company, or shall be required by law to be otherwise  

  
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signed or executed; and generally he or she shall perform all duties incident to the office of Chief Executive Officer and such other duties as may be prescribed by the Managers from time to
time. Joseph Kuhn is hereby appointed as of the date of this Agreement as the Chief Executive Officer of the Company. Mr. Kuhn shall also have the title of President of the Company, which title shall be deemed to have the same meaning as Chief
Executive Officer. 
 (ii) Vice President. In the absence of the Chief Executive Officer or in the event of his
or her inability or refusal to act, the Vice President (or in the event there be more than one Vice President, the Vice Presidents in the order designated by the Managers, or in the absence of any designation, then in the order of their election)
shall perform the duties of the Chief Executive Officer, and when so acting, shall have all the powers of and be subject to all the restrictions upon the Chief Executive Officer. The Vice Presidents shall perform such other duties as from time to
time may be prescribed by the Chief Executive Officer or by the Managers. 
 (iii) Chief Financial
Officer. The Chief Financial Officer shall: (A) have charge and custody of and be responsible for all funds and securities of the Company; receive and give receipts for moneys due and payable to the Company from any source whatsoever, and
deposit all such moneys in the name of the Company in such depositories as shall be selected in accordance with this Agreement; (B) maintain appropriate accounting records; and (C) in general perform all of the duties incident to the
office of Chief Financial Officer and such other duties as from time to time may be prescribed by the Chief Executive Officer or by the Managers. Miriam Cohen-Kuhn is hereby appointed as of the date of this Agreement as the Chief Financial Officer
of the Company. 
 (iv) Secretary. The Secretary shall: (A) keep the minutes of the meetings of
Members and of the Managers (and committees thereof) in one or more books provided for that purpose; (B) see that all notices are duly given in accordance with the provisions of this Agreement or as required by law; (C) maintain and
authenticate the records of the Company; (D) attest the signature or certify the incumbency or signature of any Officer; and (E) in general perform all duties incident to the office of secretary and such other duties as from time to time
may be prescribed by the Chief Executive Officer or by the Managers. 
 5.7 Operating Plan and Budgets. The Managers
will cause the officers of the Company to prepare a proposed operating plan and budget of the Company for each fiscal year, which plan and budget shall be updated quarterly. The Managers will promptly review, comment on and, if acceptable, approve
such budgets. If the Managers do not approve any annual budget before the beginning of a year, the Company shall operate in accordance with actual results for the prior year, plus 5%, unless and until the Managers approve a budget for such year.

 5.8 Indemnification. The Company shall indemnify the Managers and Officers to the fullest extent permitted or required
by the Act, as amended from time to time except for any liability or loss that arises from the Manager’s or Officer’s fraud, intentional misconduct, bad  

  
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faith or gross negligence, and the Company shall advance expenses (including legal fees) incurred by any Manager or Officer upon receipt by the Company of the signed statement of the Manager or
Officer agreeing to reimburse the Company for such advance in the event it is ultimately determined that such Manager or Officer is not entitled to be indemnified by the Company against such expenses. 

5.9 Limitation of Liability. The Managers of the Company shall not be liable to the Company, to the fullest extent permitted by
the Act, for monetary damages for an act or omission in such Person’s capacity as a Manager, except for (i) acts or omissions which the Manager knew at the time of the acts or omissions were in conflict with the interests of the Company
unless such acts or omissions were approved by the disinterested Managers or Members or (ii) any transaction from which the Manager derived an improper personal benefit. If the Act is amended to authorize action further eliminating or limiting
the liability of a Manager, then the liability of the Managers of the Company shall be eliminated or limited to the fullest extent permitted by the Act as so amended. Any repeal or modification of this Section shall not adversely affect the right or
protection of the Managers existing at the time of such repeal or modification. 
 ARTICLE VI- RIGHTS AND OBLIGATIONS OF MEMBERS

 6.1 No Management by Members. Except as provided in this Agreement or required by the Act, the Members in their
capacity as Members shall not take part in the management or control of the business. The Members shall not transact any business for the Company, nor shall they have power to sign for or to bind the Company. 

6.2 Election of Managers. If the number of Managers as set pursuant to Section 5.2 is greater than the number of
Managers appointed pursuant to Section 5.3, then the Members shall have the right to elect such additional Managers and any replacements thereof. 

6.3 Member Meetings. Meetings of Members may be held on such terms (including by telephone conference call), and after such
notice as the Managers may reasonably establish. Upon request for a meeting to the Managers by any Member or Members owning more than 10% of the Units, the Managers shall give notice and arrange for the holding of a meeting on the terms reasonably
requested by such Member or Members within five business days from receipt of the request. Notice of a meeting of Members must be given to all Members entitled to vote at the meeting at least forty-eight (48) hours before the date of the
meeting, unless the Members unanimously agree to waive such prior notice. 
 6.4 Action by the Members. The affirmative vote
of a Majority in Interest of the Members, regardless of the number of Members in attendance at any meeting of the Members, shall be the act of the Members hereunder and for purposes of the Act. As used in this Agreement, the phrases “the
approval of the Members ,” “the consent of the Members ,” “as determined by the Members “ and similar phrases mean the approval as set forth in the preceding sentence, except as expressly provided otherwise
in this Agreement. 
 6.5 Action Without Meeting. The Members may act without a meeting if one or more written consents,
describing the action to be taken, is provided to each Member for consideration and signed by those Members having the requisite authority to approve such action. 

  
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 6.6 Limited Liability. The Members shall not be required to make any contribution
to the capital of the Company except as set forth in Article II, nor shall the Members in their capacity as such be bound by, or personally liable for, any expense, liability or obligation of the Company except to the extent of their interest
in the Company and the obligation to return Distributions made to them under certain circumstances as required by the Act. The Members shall be under no obligation to restore a deficit capital account upon the dissolution of the Company or the
liquidation of any of their Membership Interests. 
 6.7 Bankruptcy of a Member. A Member shall cease to have any power
as a Member, any voting rights or rights of approval hereunder upon the bankruptcy or assignment for the benefit of creditors of such Member; and the Member or its bankruptcy estate or trustee or assignee upon the occurrence of any such event shall
have only the rights, powers and privileges of a transferee enumerated in Section 7.4, and shall be liable for all obligations of the Member under this Agreement. A Member shall cease to have any power as a Member, any voting rights or
rights of approval hereunder upon the death or legal incapacity of the Member. 
 6.8 Affiliate Transactions. 

(a) The fact that any Person is a Member, Manager or an Affiliate of any Member or Manager shall not prohibit the Company from employing or
engaging such Person to render or perform a service or from otherwise transacting business with such Person (collectively, the “Affiliate Transactions”) if the Affiliate Transaction is negotiated at arms’ length and is on
customary terms that are at least as favorable as a transaction with a third-party. Each Member represents and warrants to the other Members that such Member has disclosed to the other Members the existence and nature of such Member’s interest,
and/or the interest of any Affiliate of such Member, in all existing Affiliate Transactions and covenants to make the same disclosures to the other Members (and/or the Managers appointed by each such Member) in advance of the consummation of each
proposed new Affiliate Transaction. 
 (b) If it is proposed that the Company enter into any agreement, or effect any transaction with, a
Member or an Affiliate of a Member then: (i) each Member (and the Managers appointed by such Member) may represent such Member’s own interests (or the interests of its Affiliate) with respect to the negotiation of any transaction,
contract, agreement, lease, or the like between the Company and the Member or the Member’s Affiliate; and (ii) any such agreement or transaction, or amendment or modification thereof, shall be approved on behalf of the Company by a
majority of the Managers, excluding the Managers appointed by the Member who is a party (or whose Affiliate is a party) to such Affiliate Transaction. 

(c) If any Manager seeks to enforce the Company’s rights under any Affiliate Transaction (including, without limitation, the
Company’s rights under the Asset Purchase Agreement), or under the restrictive covenants and confidentiality provisions in Section 6.10, then (i) such Manager shall have authority to do so upon approval and in accordance with
the directives of a majority of the Managers, excluding the Managers appointed by the Member who is a party (or whose Affiliate is a party) to such Affiliate Transaction, (ii)  

  
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the Manager bringing the enforcement action shall be entitled to reimbursement of all reasonable attorneys’ fees and other costs in pursuing such enforcement action if they prevail on the
merits of their claims, and otherwise, such Manager shall bear its own costs, and (c) such reimbursement shall be paid by the Member who is a party (or whose Affiliate is a party) to such Affiliate Transaction promptly upon the final
non-appealable conclusion of such matter. Any recovery on the Company’s behalf in such matter shall accrue to the Company. 

6.9 Existing Agreements among Members and the Company. The following agreements in effect as of the date hereof are Affiliate
Transactions that are approved for all purposes of this Agreement: 
 (a) Asset Purchase Agreement dated as of the date hereof (the
“Asset Purchase Agreement”), between the Company, as buyer, the CAS Member, as seller, and Joseph Kuhn, as the shareholder of the CAS Member. 

(b) Employment Agreement dated as of the date hereof (the “Employment Agreement”), under which such the Company will employ
Joseph Kuhn and such executive shall agree to be bound by certain noncompetition covenants and related restrictions. 
 6.10
Noncompetition; Confidentiality. 
 (a) In furtherance of the business of the Company and the purposes of this Agreement, each Member
hereby agrees that it, and its Affiliates, will not (except via their interest in the Company) engage, directly or indirectly, either as principal, officer, director, agent, proprietor, shareholder, owner, partner, consultant, manager or employee,
or participate in the ownership, management, operation or control of any business that in any material respect offers to third parties any of the products or services provided by the Company within the territory served by the Company for so long as
such Member owns an interest in the Company; provided, however, that the foregoing shall not restrict any Member and its Affiliates from owning up to (but not more than) two percent of any class of securities of any enterprise (but
without otherwise participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934, as amended.
Each Member further agrees that it, and its Affiliates, will not, for so long as such Member owns an interest in the Company and for a period of five (5) years thereafter, employ any employee of the Company within one year following such
employee’s termination of employment with the Company. Notwithstanding any other term of this Agreement, Joseph G. Kuhn shall not be subject to restrictions under this Section 6.10(a) (including as an Affiliate) unless he or CAS (or
a Related Party of CAS) is a current Member of the Company at the time of enforcement. 
 (b) Each Member hereby agrees on behalf of itself
and its Affiliates that the confidential and proprietary business information of the Company, including financial information, operating process and technology is the Property of the Company and further agrees that it (i) will protect the
confidentiality of such confidential information with the same degree of care that the Member and its Affiliates use for the protection of their own confidential and proprietary information (but not less than commercially reasonable care), and
(ii) will not use or derive any benefit from any Confidential Information other than in connection with its 

  
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membership in the Company or pursuant to the terms of any approved Affiliate Transactions. A Member or its Affiliates may reveal the Company’s confidential information to its directors,
managers, officers, employees, affiliates, advisors, attorneys, accountants and agents (“Representatives”) who have a need to know the confidential information in connection with this Agreement or any approved Affiliate Transactions
and who are informed by the Member of the confidential nature of the confidential information. A Member will be responsible for any breach of the provisions of this agreement by any of its Representatives. For purposes hereof, confidential
information of the Company shall not include information that (i) is or becomes generally and publicly available other than as a result of a breach of this covenant by the applicable Member, (ii) is or becomes known to the Member on a
nonconfidential basis from a source which is not prohibited from disclosing such information by any contractual or fiduciary obligation to the Company, or (iii) the Member can prove by competent evidence either is already known by it at the
time of disclosure or is independently developed by it without use of Company confidential information. 
 (c) All remedies available to each
party for breach of the provisions of this Section 6.10 are cumulative and may be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed an election of such remedy to the exclusion of the other remedies.
Upon any such breach, the Company and the nonbreaching parties shall have, and may pursue, all remedies at law and in equity, and without limiting the generality of the foregoing, may sue for specific performance and damages including disgorgement
of profits. 
 ARTICLE VII- TRANSFER OF INTERESTS AND ADMISSION OF MEMBERS 

7.1 Restrictions on Transfer. 

(a) Except as provided in this Sections 7.1, 7.5, 7.6, 8.1 and 8.4, no Member may voluntarily or
involuntarily Transfer, or create or suffer to exist any Encumbrance against, all or any part of its record or beneficial interest in the Company without the prior written consent of the Managers. No Member that is an entity may transfer equity or
other controlling interests to the extent that such entity would no longer qualify as a Related Party of the controlling equityholder of the Member as of the date it became a Member. Except for withdrawals in connection with a Transfer of Units
permitted by this Agreement, no Member may withdraw from the Company without the consent of the Managers. 
 (b) A Member may
voluntarily Transfer all or any part of its Units in the Company to any Related Party of such Member, provided that CAS shall not make any such Transfer prior to the fifth anniversary of the date of the Asset Purchase Agreement without the
prior written consent of the Managers. No further Transfer shall be made by any Related Party transferee except back to the Member that originally owned it or to another Related Party of such Member, or except pursuant to the terms of
Section 7.1(a). Any Related Party transfer shall be subject to Section 7.2 but shall not otherwise require the consent of the Managers. A Related Party transferee shall become a Member upon compliance with Sections
7.3(a) and 7.3(c). At all times after a transfer by a Member to a Related Party transferee, the Option rights described in Section 8.1 and the Purchase Events described in Section 8.2 shall apply upon the
occurrence of any such event to either of the transferring Member or the Related Party transferee. 

  
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 (c) If, at any time prior to the Transfer of any Units pursuant to this
Section 7.1, such Units are required to be sold pursuant to Sections 7.6, 8.1 or 8.4, the provisions of Sections 7.6, 8.1 or 8.4, as applicable, shall govern the Transfer of such Units and this
Section 7.1 shall cease to apply to the Transfer of such Units. 
 7.2 Conditions Precedent to Transfers.
Any purported Transfer or Encumbrance otherwise complying with Section 7.1 will be ineffective until the transferor and his transferee furnish to the Company the instruments and assurances the Managers may request, including without
limitation, if requested, an opinion of counsel satisfactory to the Company that the interest in the Company being Transferred or Encumbered has been registered or is exempt from registration under the Securities Act and applicable state securities
laws. 
 7.3 Substituted Members. No assignee or transferee of Units shall be admitted as a substituted Member of the
Company unless, in addition to compliance with the conditions set forth in Section 7.2, all of the following conditions are satisfied: 

(a) The assignee has executed and delivered all documents deemed appropriate by the Company to reflect his admission to the Company and his
agreement to be bound by this Agreement; 
 (b) The Managers shall have consented in writing to such substitution, provided that no
such consent shall be required in respect of any assignment or transfer expressly permitted pursuant to Section 7.1; and 
 (c) Payment
has been made to the Company of all costs and expenses of admitting any such assignee as a substituted Member. 
 7.4 Rights of
Transferee. Unless admitted to the Company in accordance with Section 7.3, the transferee of Units shall not be entitled to any of the rights, powers or privileges of its predecessor in interest, except that it shall be entitled to
receive any Distributions and be credited or debited with its proportionate share of Profits and Losses. If the Company is required by a court of competent jurisdiction or applicable law to recognize an unauthorized Transfer all or any part of any
Member’s record or beneficial interest in the Company, then such Transfer shall be deemed a breach hereunder and the Transferee shall have only the rights of a Transferee under this Section 7.4 with respect to the transferred
interest, and any Distributions with respect to such transferred interest may be applied (without limiting any other legal or equitable rights of the Company) towards the satisfaction of any debts, obligations, or liabilities for damages that the
transferor or transferee of such interest may have to the Company. 
 7.5 Tag-Along. 

(a) In the event that a Member or Members (collectively, the “Majority Member”) is permitted (pursuant to
Section 7.1(a)) and proposes to Transfer Units constituting more than 50% of the total Units to a third party (the “Tag-Along Transferee”), then the Majority Member shall, at least 45 days prior to the proposed Transfer,
give written notice to the other Members (a “Tag-Along Notice”) describing the terms of the proposed Transfer in reasonable detail, including the identity of the Tag-Along Transferee, the number of Units to be sold and the proposed
closing date, and stating that each of the other Members (each, a “Tag-Along  

  
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Member”) has the right (the “Tag-Along Right”) to sell to the Tag-Along Transferee the same pro rata portion of its Units as the Majority Member (determined by
reference to the relative Units of each such Member and with pro rata cutbacks for all selling Members to the extent that the Tag-Along Transferee is unwilling to acquire all Units sought to be Transferred), simultaneously with and conditional upon
the closing of such Transfer, on the same pro rata terms and conditions as the Majority Member. 
 (b) Each Tag-Along Member may elect to
exercise its Tag-Along Right by delivering written notice to the Majority Member and the other Members no later than 30 days after receipt of the Tag-Along Notice (the “Tag-Along Period”). In the event a Tag-Along Member delivers
such a notice to the Majority Member prior to the expiration of the Tag-Along Period, such notice shall constitute an irrevocable obligation of such Tag-Along Member to sell its Units to the Tag-Along Transferee in accordance with the Tag-Along
Notice. The Majority Member shall give the Tag-Along Members at least ten business days’ notice of the time and place of the closing. 

(c) Each Member as part of its participation in the Transfer pursuant to the Tag-Along Right shall convey its Units to the Tag-Along Transferee
at the closing, free and clear of all liens, claims and encumbrances and pursuant to such instruments of conveyance and warranties (including warranty of title and absence of encumbrances) as the Tag-Along Transferee shall reasonably request, in
exchange for payment in full of the purchase price set forth in the Tag-Along Notice, and each Tag-Along Member shall enter into agreements with the Tag-Along Transferee containing the same terms and conditions as those applicable to the Majority
Member; provided, however, that except with respect to indemnities for breaches of representations related to title to the Tag-Along Member’s Units, each Tag-Along Member shall only be required to participate pro rata in any
indemnity given to the Tag-Along Transferee on the same terms as the Majority Member, subject to a maximum indemnity exposure not to exceed the proceeds of the sale received by such Tag-Along Member. All Members participating in any such transaction
shall bear their pro rata share of the reasonable costs of such transaction. Costs incurred by a Member on its own behalf shall not be considered costs of such a transaction and shall be paid solely by such Member. 

7.6 Drag-Along. 

(a) In the event that a Majority Member has received a bona fide written offer (the “Drag-Along Offer”) from an unaffiliated
third party (the “Drag-Along Transferee”) to purchase Units constituting more than 50% of the total Units, then the Majority Member shall have the right (“Drag-Along Right”) to require all, but not less than all, of
the other Persons holding Units (the “Drag-Along Persons”) to sell the same pro rata portion of their Units as the Majority Member (determined by reference to the relative Units of each such Member) to the Drag-Along Transferee in
accordance with the terms of the Drag-Along Offer. 
 (b) The Majority Member may elect to exercise its Drag-Along Right by delivering
written notice (the “Drag-Along Notice”) to the Drag-Along Persons. The Drag-Along Notice must describe the terms of the proposed Transfer in reasonable detail, including the identity of the Drag-Along Transferee and the proposed
closing date. In the event the Majority Member delivers a Drag-Along Notice to the Drag-Along Persons, such notice shall 

  
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constitute an irrevocable obligation of such Persons to sell their applicable Units to the Drag-Along Transferee in accordance with the Drag-Along Offer, so long as the purchase and sale
transaction occurs within 90 days after the date of the Drag-Along Notice. In the event that the Drag-Along Transferee desires to effect such Transfer pursuant to a merger, consolidation or other business combination of the Company, the Majority
Member shall have the right to cause the Managers and the other Members and Drag-Along Persons to effect such form of Transfer, and take all actions necessary to approve such form of Transfer pursuant to this Section 7.6. The Majority
Member shall give the Drag-Along Persons at least ten business days’ notice of the time and place of the closing. 
 (c) Each
Drag-Along Person as part of its participation in the Transfer pursuant to the Drag-Along Right shall convey its Units, if required by the form of the transaction, to the Drag-Along Transferee at the closing, free and clear of all liens, claims and
encumbrances and pursuant to such instruments of conveyance and warranties (including warranty of title and absence of encumbrances) as the Drag-Along Transferee shall reasonably request, in exchange for payment in full of the purchase price set
forth in the Drag-Along Offer, and each Drag-Along Person shall enter into agreements with the Drag-Along Transferee containing the same terms and conditions as those applicable to the Majority Member; provided, however, that except
with respect to indemnities for breaches of representations related to title to such Drag-Along Person’s Units, each Drag-Along Person shall only be required to participate pro rata in any indemnity given to the Drag-Along Transferee on the
same terms as the Majority Member, subject to a maximum indemnity exposure not to exceed the proceeds of the sale received by such Drag-Along Person. All Members participating in any such transaction shall bear their pro rata share of the reasonable
costs of such transaction. Costs incurred by a Member on its own behalf shall not be considered costs of such a transaction and shall be paid solely by such Member. 

ARTICLE VIII- PUT-CALL OPTIONS; OTHER PURCHASE EVENTS 

8.1 Put-Call Options. 

(a) Commencing on the fifth anniversary of the date of this Agreement and at any time thereafter (the “Option Period”),
(i) the Company (or Air T if the Managers so elect, in either case, the “Buyer”) shall have the option to purchase all of the Units of CAS and (ii) CAS shall have the option to sell all of its Units to the Buyer (either of
such options, the “Option”). Either of the Buyer or CAS may elect to exercise its Option by delivering written notice to the Company and the other Members prior to or during the Option Period. In the event the Buyer or CAS delivers
such a notice, such notice shall constitute an irrevocable obligation of the Company (or Air T if so designated by the Managers) to purchase and CAS to sell its Units in accordance with this Section 8.1. 

(b) The purchase price to be paid for CAS’s Units upon exercise of the Option will be the Strike Price. The closing (the “Option
Closing”) of the purchase following the exercise of the Option shall take place on the date agreed upon by the Buyer and CAS, but not later than thirty (30) days following a final determination of the Strike Price under
Section 8.1(c) below; provided, however, that the Option Closing may not take place prior to the commencement of the Option Period. The Strike Price shall be paid on the Option Closing by 

  
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the Buyer, in the Buyer’s discretion, in any combination of the following: (i) cash and/or (ii) delivery of a three-year amortizing promissory note of the Buyer for the balance of
the Strike Price, which note shall require monthly principal and interest payments on a three-year fully amortized schedule (with the first such principal payment due at the Option Closing), bearing interest at an annual rate equal to the 10-Year
Treasury Bond Yield plus 375 basis points. Such Note shall be secured by the Units which are the subject of such transfer. Upon delivery of full payment of the Strike Price, CAS shall execute and deliver such assignments and other instruments as may
be reasonably necessary to evidence and fully affect the transfer of its Units to the Buyer free and clear of all liens, claims and encumbrances. 

(c) Upon the delivery by either party of a notice of exercise of the Option, the Buyer and CAS shall work together in good faith to mutually
agree in writing on the Strike Price within the period of 90 days following the date of such notice. If the parties cannot agree on the Strike Price within such period, then each of the Buyer and CAS shall engage a qualified reputable investment
banking firm or qualified reputable business appraisal firm, either of which shall have no prior business relationship with either party, and whose representative signing any valuation shall be an individual accredited as a chartered financial
analyst (CFA) by the CFA Institute, an individual accredited in business valuation (ABV) through the American Institute of CPAs (AICPA), an individual accredited as a certified valuation analyst (CVA) by the National Association of Certified
Valuators and Analysts (NACVA), or an individual accredited in business valuation through the American Society of Appraisers (ASA) to provide a written determination of the Strike Price. Each party shall deliver the written determination of its
appraiser to the other party on the 150th day following the date of the Option exercise notice. If the two appraisals are within an amount that is 20% or less of the lower appraisal, then the
Strike Price shall be the average of the two appraisals. If the appraisals differ by greater than such 20% threshold, then the parties shall instruct the two appraisers to select a third, neutral qualified reputable investment banking firm or
qualified reputable business appraisal firm that has no prior business relationship with either party and that has relevant experience in the aerospace industry. Such third appraiser, within 45 days of its appointment, after reviewing the appraisals
by the first two appraisers and undertaking an independent analysis, shall issue its determination in writing of the Strike Price. Upon such determination, the final Strike Price shall be calculated by averaging the determination of the third
appraiser with the one determination of the first two appraisers that is closest (either above or below) to the determination of the third appraiser, which calculation shall be final and conclusive as to the Strike Price. The costs of the appraiser
selected by a party shall be the expense of such party and the cost of a third appraiser, if required, shall be borne equally by the Buyer and CAS. 

(d) In connection with the appraisals made pursuant to Section 8.1(c), if there has been one or more changes in the accounting
practices of the Company during any relevant valuation period (including without limitation the accounting practices governing the expensing of inventory that may impact any cash flow determination or EBITDA calculation for such period), the
appraisers are directed to review and account for such changes in a manner that ensures the Strike Price determined hereunder is not unduly increased or decreased as a result of such changes. 

  
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 8.2 Purchase Events. Each of the following events shall constitute a
“Purchase Event” under this Agreement: 
 (a) The death of Joseph G. Kuhn, permanent disability of Joseph G. Kuhn
with respect to CAS, or the dissolution and winding up of a Member; 
 (b) Any filing by a Member of a voluntary petition for reorganization
or liquidation under any federal or state law for the relief of debtors or any filing against a Member of any involuntary petition for liquidation or reorganization under any federal or state law for the relief of debtors that is not dismissed or
stayed within 60 days of filing; 
 (c) Any purported voluntary or involuntary Transfer or Encumbrance of all or any part of a Member’s
Membership Interest in a manner not expressly permitted by this Agreement; 
 (d) Any material breach of this Agreement by a Member which is
not cured within sixty (60) days after written notice of such breach is given to the Member by the Company; or 
 (e) Any purported
withdrawal or attempt to withdraw by a Member from the Company other than as may be expressly permitted by this Agreement. 
 8.3
Purchase Notice. Upon the occurrence of a Purchase Event, the Member to whom such event has occurred (the “Withdrawing Member”), or his executor, administrator or other legal representative in the event of death or
declaration of legal incompetency, shall give notice of the Purchase Event (the “Purchase Notice”) to the Managers and the Company within thirty (30) days after its occurrence. If the Withdrawing Member fails to give the
Purchase Notice, the Managers or a Majority in Interest of the Members (other than a Withdrawing Member) may give the notice at any time thereafter and by so doing commence the Purchase procedure provided for in this Article VIII. 

8.4 Members’ Purchase Option. Upon the occurrence of a Purchase Event, each of the Members, except the Withdrawing Member
and any other Withdrawing Member, shall have an option to purchase (the “Purchase Option”) the Withdrawing Member’s Units at Closing on the terms and conditions set forth in this Article VIII. This right will be
allocated among the Members who elect to purchase (the “Purchasing Members”) in the proportion they mutually agree upon, or, in the absence of agreement, in the ratio that each of the Purchasing Member’s Units bears to the
aggregate Units of all Purchasing Members. The Purchasing Members must give notice of their election to exercise their Purchase Option to the Withdrawing Member and all other Members within thirty (30) days following delivery of the Purchase
Notice. 
 8.5 Purchase Price For Withdrawing Member’s Units. The purchase price to be paid for the Withdrawing
Member’s Units Interest will be the price agreed upon by the Purchasing Members and the Withdrawing Member within thirty (30) days after the Purchase Notice is given, or, if no agreement is reached, the Strike Price. 

8.6 Closing. The closing (the “Closing”) of the purchase of any Units required to be purchased and sold following the
exercise of a purchase option pursuant to this Article VIII shall take place on the date agreed upon by the Purchasing Members and the Withdrawing Member or, if no date is agreed upon, on a date set by the Purchasing Members but not later
than ninety (90) days after the delivery of the Purchase Notice. The purchase price for each Unit 

  
 - 19 - 

 
being purchased will be payable by each Purchasing Member for its allocated share, at the election of each Purchasing Member, either (i) in full in cash at Closing or (ii) by a note
payable in three equal principal installments on the Closing date and on the first and second anniversaries thereof, with payment of such note secured by the Units subject to transfer. The purchase price will bear interest from the date of the
Purchase Event which began the Purchase procedure through the date of payment (including any future payments under a note as provided above) at an interest rate equal to the Prime Rate on the date of the Purchase Event, or if not a business day, the
next business day thereafter. Upon full payment of the purchase price, any Withdrawing Member shall execute and deliver such assignments and other instruments as may be reasonably necessary to evidence and fully affect the transfer of their
Membership Interests to any purchaser. 
 8.7 Effect on Withdrawing Member’s Interest. From the date of the occurrence of the
Purchase Event to the date of the Transfer of the Withdrawing Member’s Units under this Article VIII, the Units of the Withdrawing Member will be excluded from any calculation of aggregate Units for purposes of any approval required of
Members under this Agreement. Without limiting the generality of any other provision of this Agreement, upon the exercise of the Purchase Option, the Withdrawing Member, without further action, will have no rights in the Company or against the
Company or any Member other than the right to receive payment for his Units in accordance with this Article VIII. 
 ARTICLE IX-
DISSOLUTION AND LIQUIDATION OF THE COMPANY 
 9.1 Dissolution Events. The Company will be dissolved upon the happening of
any of the following events: 
 (a) All or substantially all of the Property of the Company is sold, exchanged or otherwise
transferred (unless the Managers elect to continue the business of the Company); 
 (b) A document is signed by a Majority in Interest of the
Members which states their election to dissolve the Company; 
 (c) The entry of a final judgment, order or decree of a court of competent
jurisdiction adjudicating the Company to be bankrupt and the expiration without appeal of the period, if any, allowed by applicable law in which to appeal; or 

(d) The entry of a decree of judicial dissolution or the issuance of a certificate for administrative dissolution under the Act. 

9.2 Liquidation. Upon the happening of any of the events specified in Section 9.1, the Managers will commence as
promptly as practicable to wind up the Company’s affairs unless the Managers determine that an immediate liquidation of Company assets would cause undue loss to the Company, in which event the liquidation may be deferred for a time determined
by the Managers to be appropriate. Assets of the Company may be liquidated or distributed in kind, as the Managers determine to be appropriate. The Members will continue to share Company Profits and Losses during the period of liquidation in the
manner set forth in Articles III and IV. The proceeds from liquidation of the Company, including repayment of any debts of Members to the Company, and any Company assets that are not sold in connection with the liquidation will
be applied in the following order of priority: 

  
 - 20 - 

 (a) To payment of the debts and satisfaction of the other obligations of the Company, including
without limitation debts and obligations to Members; 
 (b) To the establishment of any reserves deemed appropriate by the Managers
for any liabilities or obligations of the Company, which reserves will be held for the purpose of paying liabilities or obligations and, at the expiration of a period the Managers deem appropriate, will be distributed in the manner provided in
Section 9.2(c); 
 (c) To the Members in accordance with Section 4.1. 

ARTICLE X- MISCELLANEOUS 

10.1 Other Activities of Members and Managers. Subject to the restrictive covenants in Section 6.10, any Member and
its Affiliates and any Manager and its Affiliates may engage in or possess an interest in other business ventures of any nature or description, independently or with others, without having or incurring any obligation to offer any interest in such
activities to the Company or any Member and neither the Company nor any Member or Manager shall have any rights in or to such independent ventures or the income or profits derived therefrom by virtue of this Agreement. 

10.2 Fiscal Year. The Fiscal Year will end on March 31, unless another fiscal year-end is selected by the Managers.

 10.3 Records. The records of the Company will be maintained at the principal place of business of the Company, or at
any other location the Managers select provided that the Company keep at its principal place of business the records required by the Act to be maintained there. Appropriate records in reasonable detail will be maintained to reflect income tax
information for the Members. 
 10.4 Notices. Any notice or other communication required by this Agreement must be in
writing. Notices and other communications will be deemed to have been given when delivered by hand (including by recognized overnight delivery service) or three business days after being deposited in the United States mail, postage prepaid,
addressed to the Member to whom the notice is intended to be given (or to any Manager appointed by such Member) at its address set forth on the signature pages of this Agreement or, in the case of the Company, to its principal place of business. A
Person may change his notice address by notice in writing to the Company and to each other Member given under this Section 10.4. 

10.5 Amendments. Except as otherwise expressly provided in this Section 10.5 or as permitted by
Section 3.12, no amendment of this Agreement will be valid or binding upon the Members, nor will any waiver of any term of this Agreement be effective, unless in writing and signed by all Members. 

  
 - 21 - 

 10.6 Representations of Members. Each Member represents and warrants to the Company and
every other Member that it (a) is fully aware of, and is capable of bearing, the risks relating to an investment in the Company, (b) understands that its interest in the Company has not been registered under the Securities Act or the
securities law of any jurisdiction in reliance upon exemptions contained in those laws, and (c) has acquired its interest in the Company for its own account, with the intention of holding the interest for investment and without any intention of
participating directly or indirectly in any redistribution or resale of any portion of the interest in violation of the Securities Act or any applicable law. 

10.7 Survival of Rights. Except as herein otherwise provided to the contrary, this Agreement shall be binding upon and inure to
the benefit of the parties, their successors and assigns. 
 10.8 Governing Law. This Agreement shall be governed and
construed in accordance with the laws of the State of North Carolina without giving effect to the conflicts of laws provisions thereof. 

10.9 Severability. If any provision, sentence, phrase or word of this Agreement or the application thereof to any person or
circumstance shall be held invalid, the remainder of this Agreement, or the application of such provision, sentence, phrase, or word to persons or circumstances, other than those as to which it is held invalid, shall not be affected thereby.

 10.10 Agreement in Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed
an original, but all of which shall constitute one and the same instrument. In addition, this Agreement may contain more than one counterpart of the signature pages and this Agreement may be executed by the affixing of the signatures of each of the
Members to one of such counterpart signature pages; all of such signature pages shall be read as though one, and they shall have the same force and effect as though all of the signers had signed a single signature page. 

10.11 Tax Matters Partner. For purposes of this Agreement, the Managers may designate one Member as the Tax Matters Partner. Air
T is hereby designated as the initial Tax Matters Partner. 
 10.12 Creditors Not Benefited. Nothing in this Agreement
is intended to benefit any creditor of the Company or of any Member. No creditor of the Company or any Member will be entitled to require the Managers to solicit or accept any loan or additional capital contribution for the Company or to enforce any
right which the Company or any Member may have against a Member, whether arising under this Agreement or otherwise. 
 10.13
Members’ Access to Information. Each Member shall have the right to obtain from the Company, or be granted access for the purpose of reviewing and copying, from time to time, upon reasonable notice, such information regarding the affairs
of the Company as may be reasonably related to the business, operational and financial affairs of the Company (including without limitation quarterly and annual financial statements for the Company consisting of a balance sheet and income statement
for such periods prepared in accordance with sound accounting principles). Any demand for information under this Section 10.13 shall (i) be in writing, (ii) be made in good faith and for a proper purpose, and
(iii) describe with reasonable particularity the purpose and the records or information demanded. 

  
 - 22 - 

 ARTICLE XI- DEFINITIONS 

11.1 Definitions. The following terms used in this Agreement shall have the following meanings (unless otherwise expressly
provided herein): 
 “Act” has the meaning assigned to it in Section 1.1. 

“Adjusted Capital Account Deficit” means, with respect to any Member, the deficit balance, if any, in such Member’s
Capital Account as of the end of the relevant fiscal year, after giving effect to the following adjustments: 
 (a) Credit to such Capital
Account any amounts to which such Member is obligated to restore or is deemed to be obligated to restore pursuant to the penultimate sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); and 

(b) Debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), and
1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations. 
 The foregoing definition of Adjusted Capital Account Deficit is intended to comply
with the provisions of Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations and shall be interpreted consistently therewith. 

“Adjusted Capital Contributions” means, as of any day, a Member’s Capital Contributions adjusted as follows: 

(a) Increased by the amount of any Company liabilities which, in connection with Distributions, are assumed by such Member or are secured by
any Company Property distributed to such Member, and 
 (b) Reduced by the amount of cash and the Gross Asset Value of any Company Property
distributed to such Member and the amount of any liabilities of such Member assumed by the Company or which are secured by any property contributed by such Member to the Partnership. 

In the event any Member transfers all or any portion of his Units in accordance with the terms of this Agreement, his transferee shall succeed
to the Adjusted Capital Contribution of the transferor to the extent it relates to the transferred Units. 
 “Affiliate”
means (a) with regard to any Member who is an individual, such Member’s Family Members, a trust for the benefit of such Member or his/her Family Members, or a corporation, partnership, limited liability company or other entity in which
such Member holds the controlling governing interest and (b) with regard to any Member that is not an individual, (i) any Person directly or indirectly controlling, controlled by or under common control with such Person through contract or
through the ownership of the controlling governing interest of a Person, (ii) any and all directors, managers, officers, partners, shareholders and members of such Person and all settlors and trustees of any trust and (iii) any Family
Member of any Person described in the foregoing clauses (i) and (ii). 

  
 - 23 - 

 “Affiliate Transactions” has the meaning assigned to it in
Section 6.8(a). 
 “Agreement” means this First Amended and Restated Operating Agreement, as amended from time
to time. 
 “Air T” means Air T, Inc. 

“Articles of Organization” means the Articles of Organization of the Company filed with the Secretary of State, as amended or
restated from time to time. 
 “Asset Purchase Agreement” has the meaning assigned to it in Section 6.9(a).

 “Buyer” has the meaning assigned to it in Section 8.1(a). 

“Capital Account” means, with respect to any Member, the capital account maintained for such Member in accordance with
Section 2.5. 
 “Capital Contribution” means all contributions of cash or property (valued for this purpose at
initial Gross Asset Value) made by a Member or his predecessor in interest which shall include, without limitation, those contributions made pursuant to Article II of this Agreement. 

“CAS” means Contrail Aviation Support, Inc., which will change its name to OCAS, Inc. promptly following the date hereof.

 “Code” means the Internal Revenue Code of 1986, as amended from time to time (and any corresponding provisions of
succeeding law). 
 “Company Minimum Gain” means gain as defined in Treasury Regulations Section 1.704-2(d). 

“Depreciation” means, for each Fiscal Year, an amount equal to the depreciation, amortization, or other cost recovery
deduction allowable with respect to an asset for such Fiscal Year, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year, Depreciation shall be an amount
which bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year bears to such beginning adjusted tax basis; provided, however,
that if the adjusted basis for federal income tax purposes of an asset at the beginning of such Fiscal Year is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the
Managers. 
 “Distribution” means any money or other property distributed to a Member with respect to the Member’s
Units, but shall not include any payment to a Member for materials or services rendered nor any reimbursement to a Member for expenses permitted in accordance with this Agreement. 

  
 - 24 - 

 “EBITDA” has the meaning assigned to it in the Asset Purchase Agreement and
shall be calculated for all purposes under this Agreement in a manner consistent with the manner in which it is calculated pursuant to the Asset Purchase Agreement. 

“Employment Agreement” has the meaning assigned to it in Section 6.9(b). 

“Encumbrance” means any lien, pledge, encumbrance, collateral assignment or hypothecation. 

“Family Member” of any Person means such Person’s spouse, any issue, spouse of issue and any Affiliate of any such
Person; provided, however, that any spouse living separate and apart from a Member with the intention by either spouse to cease their matrimonial cohabitation shall not be deemed a Family Member. 

“Fiscal Year” means an annual accounting period ending December 31 of each year during the term of the Company. 

“Gross Asset Value” means, with respect to any asset, the asset’s adjusted basis for federal income tax purposes, except
as follows: 
 (a) The initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of
such asset, as determined by the contributing Member and the Managers; 
 (b) The Gross Asset Values of all Company assets shall be adjusted
to equal their respective gross fair market values, as determined by the Managers, as of the following times: (i) the acquisition of an additional interest in the Company (other than upon the initial formation of the Company) by any new or
existing Member in exchange for more than a de minimis Capital Contribution; (ii) the distribution by the Company to a Member of more than a de minimis amount of Company Property as consideration for an interest in the Company; and
(iii) the liquidation of the Company within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g); provided, however, that the adjustments pursuant to clauses (i) and (ii) above shall be made only if the
Managers reasonably determine that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company; 

(c) The Gross Asset Value of any Company asset distributed to any Member shall be adjusted to equal the gross fair market value of such asset
on the date of distribution as determined by the distributee and the Managers; and 
 (d) The Gross Asset Values of Company assets shall be
increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital
Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m) and subsection (f) in the definition of Profits and Losses herein, and 6.10 hereof; provided, however, that Gross Asset Values shall not be adjusted
pursuant to this subsection (d) hereof to the extent the Managers determine that an adjustment pursuant to subsection (b) hereof is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment
pursuant to this subsection (d). 

  
 - 25 - 

 If the Gross Asset Value of an asset has been determined or adjusted pursuant to subsection
(a) or (b), or subsection (d) hereof, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits or Losses. 

“Initial Capital Contribution” has the meaning assigned to it in Section 2.2. 

“Losses” has the meaning set forth in the definition of “Profits and Losses.” 

“Majority in Interest” means, with respect to any referenced group of Members, a combination of any of such Members who, in
the aggregate, own more than fifty percent (50%) of the Units owned by all of such referenced group of Members. 

“Managers” means the Person or Persons serving as Managers of the Company as set forth in Article V. 

“Member” means each Person designated as a member of the Company on Schedule I hereto, or any additional member
admitted as a Member of the Company in accordance with Article VII. “Members” refers to such Persons as a group. 

“Member Minimum Gain” means an amount, with respect to each Member Nonrecourse Debt, equal to the Company Minimum Gain that
would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Treasury Regulations Section 1.704-2(i). 

“Member Nonrecourse Debt” means any nonrecourse debt (for the purposes of Treasury Regulations Section 1.1001-2) of the
Company for which any Member bears the “economic risk of loss,” within the meaning of Treasury Regulations Section 1.752-2. 

“Member Nonrecourse Deductions” means deductions as described in Treasury Regulations Section 1.704-2(i). The amount of
Member Nonrecourse Deductions with respect to a Member Nonrecourse Debt for any Fiscal Year equals the excess, if any, of (A) the net increase, if any, in the amount of Member Minimum Gain attributable to such Member Nonrecourse Debt during
such Fiscal Year, over (B) the aggregate amount of any Distributions during that Fiscal Year to the Member that bears the economic risk of loss for such Member Nonrecourse Debt to the extent such Distributions are from the proceeds of such
Member Nonrecourse Debt and are allocable to an increase in Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Treasury Regulations Section 1.704-2(i). 

“Membership Interest” means all of a Member’s rights in the Company, including without limitation, the Member’s
share of the Profits and Losses of the Company, the right to receive Distributions of the Company’s assets, any right to vote and any right to participate in the management of the Company as provided in the Act and this Agreement. 

“Nonrecourse Deductions” means deductions as set forth in Treasury Regulations Section 1.704-2(b)(1). The amount of
Nonrecourse Deductions for a given Fiscal Year equals the excess, if any, of (A) the net increase, if any, in the amount of Company Minimum Gain 

  
 - 26 - 

 
during such Fiscal Year, over (B) the aggregate amount of any Distributions during such Fiscal Year of proceeds of a Nonrecourse Liability that are allocable to an increase in Company
Minimum Gain, determined according to the provisions of Treasury Regulations Section 1.704-2(h). 

“Nonrecourse Liability” means any Company liability (or portion thereof) for which no Member bears the “economic risk of
loss,” within the meaning of Treasury Regulations Section 1.752-2. 
 “Option” has the meaning assigned to it in
Section 8.1(a). 
 “Option Closing” has the meaning assigned to it in Section 8.1(b). 

“Option Period” has the meaning assigned to it in Section 8.1(a). 

“Person” means an individual, a trust, an estate, or a domestic corporation, a foreign corporation, a professional
corporation, a partnership, a limited partnership, a limited liability company, a foreign limited liability company, an unincorporated association, or another entity. 

“Prime Rate” means as of a particular date the prime rate of interest as published on that date in the WALL STREET JOURNAL.
If the WALL STREET JOURNAL is not published on a date for which the Prime Rate must be determined, the Prime Rate shall be the prime rate published in the WALL STREET JOURNAL on the nearest preceding date on which the WALL STREET JOURNAL was
published. 
 “Profits and Losses” means, for each Fiscal Year, an amount equal to the Company’s taxable income or
loss for such year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in
taxable income or loss), with the following adjustments: 
 (a) Any income of the Company that is exempt from federal income
tax and not otherwise taken into account in computing Profits and Losses pursuant to this definition of “Profits” and “Losses” shall be added to such taxable income or loss; 

(b) Any expenditures of the Company described in Code Section 05(a)(2)(B) or treated as Code Section 705(a)(2)(B)
expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses shall be subtracted from such taxable income or loss; 

(c) In the event the Gross Asset Value of any Company asset is adjusted pursuant to the definition of Gross Asset Value, the
amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses; 

  
 - 27 - 

 (d) Gain or loss resulting from any disposition of Company Property with respect
to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value;

 (e) In lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such
taxable income or loss, there shall be taken into account Depreciation for such fiscal year or other period, computed in accordance with the definition of Depreciation hereof; 

(f) To the extent an adjustment to the adjusted tax basis of any Company asset pursuant to Code Section 734(b) or Code
Section 743(b) is required pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a Distribution other than in liquidation of a Member’s interest in the
Company, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into
account for purposes of computing Profits or Losses; 
 (g) Notwithstanding any other provision of this definition of Profits
and Losses, any items which are specially allocated pursuant to Sections 3.1(b), 3.2, 3.3, 3.6, 3.7, 3.8, 3.9, 3.10 or 3.11 hereof shall not be taken into account in computing Profits or
Losses. 
 The amounts of the items of Company income, gain, loss, or deduction available to be specially allocated pursuant to Sections
3.1(b), 3.2, 3.3, 3.6, 3.7, 3.8, 3.9, 3.10 or 3.11 hereof shall be determined by applying rules analogous to those set forth in subsections (a) through (f) above. 

“Property” means (i) any and all real property acquired or owned by the Company, (ii) any and all of the
improvements constructed on such real property; and (iii) any personal property acquired or owned by the Company (including, without limitation, intangible property). 

“Purchase Event” has the meaning assigned to it in Section 8.2. 

“Purchase Notice” has the meaning assigned to it in Section 8.3. 

“Purchase Option” has the meaning assigned to it in Section 8.4. 

“Purchasing Members” has the meaning assigned to it in Section 8.4. 

“Related Party” means, (a) with respect to a Member who is an individual, (i) a trust solely for the benefit of the
Member and/or any Family Member or (ii) a corporation, partnership, limited liability company or other entity in which the Member and/or any Family Member, or a trust for any of their benefit own all of the equity interests; provided
that in any case the Member possesses the power to direct or cause the direction of the management and policies of such Person, whether as trustee or through the ownership of voting securities, by contract or otherwise; provided,
however, that any spouse living separate and apart from a 

  
 - 28 - 

 
Member or issue of a Member with the intention by either spouse to cease their matrimonial cohabitation shall not be deemed a Related Party and (b) with respect to a Member that is an
entity, (i) the controlling individual equityholder of such Member as of the date of this Agreement, (ii) any trust or entity that would qualify as a Related Party of such controlling individual equityholder and (iii) any Person
directly or indirectly controlling, controlled by or under common control with such Person through contract or through the ownership of the controlling governing interest of a Person. 

“Representative” has the meaning assigned to it in Section 6.10(b). 

“Secretary of State” means the Secretary of State of North Carolina. 

“Strike Price” means an amount equal to the total distributions CAS would receive pursuant to Article IV if the
Company (i) sold all of its assets (inclusive of its intangible assets) at fair market value and on a going-concern basis in an arms-length transaction to an independent third-party purchaser, (ii) paid its debts and liabilities (inclusive
of contingent liabilities, the value of which shall be estimated or otherwise provided for in the determination of the Strike Price), and (iii) distributed all remaining assets (inclusive of all cash and cash equivalents of the Company) after
all gain or loss from such deemed sale is allocated pursuant to Article III. The Strike Price shall be determined as of the end of the month ending immediately prior to delivery of notice of exercise of the Option and shall be the amount
agreed by the parties or determined pursuant to the appraisal process set forth in Section 8.1(c). The foregoing definition and appraisal process as set forth in Section 8.1(c) shall exclude the application of any discount
for lack of control , discount for lack of marketability, or any other similar discounts or adjustments in the determination of the Strike Price. 

“Tax Matters Partner” means the Member designated by the Managers as the “tax matters partner,” as that term is
defined in the Code or as the partnership representative within the meaning of that term in Code § 6223(a) when such provision becomes applicable to the Company. 

“Transfer” means sell, assign, transfer, lease or otherwise dispose of property, including without limitation an interest in
the Company. 
 “Treasury Regulations” means the Income Tax Regulations and Temporary Regulations promulgated under the
Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 

“Units” has the meaning assigned to it in Section 2.1. 

“Withdrawing Member” has the meaning assigned to it in Section 8.3. 

[Signatures appear on following page.] 

  
 - 29 - 

 IN WITNESS WHEREOF, the undersigned, being all of the Members of the Company, have caused this
Agreement to be duly adopted by the Company effective as of the date set forth on the cover page of the Agreement, and do hereby assume and agree to be bound by and to perform all of the terms and provisions set forth in this Agreement. 

 

			
	MEMBERS:
	
	AIR T, INC.
		
	By:	 	 /s/ Nicholas J. Swenson

		 	Name: Nicholas J. Swenson
		 	Title: President & Chief Executive Officer
	
	CONTRAIL AVIATION SUPPORT, INC.
		
	By:	 	 /s/ Joseph G. Kuhn

		 	Name: Joseph G. Kuhn
		 	Title: President

 Operating Agreement of 

Contrail Aviation Support, LLC 

 SCHEDULE I 
  

									
	 Names and Address of Members
	  	Initial Capital Contribution	 	  	Units	 
	 Air T, Inc.

3524 Airport Road

Maiden, NC 28650
	  	$	4,937,500	  	  	 	4,937.5	  
	 Contrail Aviation Support, Inc.

435 Investment Court

Verona, WI 53593
	  	$	1,312,500	  	  	 	1,312.5	  
	 TOTALS
	  	$	6,250,000	  	  	 	6,250EX-10.2

 Exhibit 10.2 
  

 
  

 
 

 
 Credit Agreement 

dated as of July 18, 2016 

between 
 CONTRAIL
AVIATION SUPPORT, LLC 
 and 

BMO HARRIS BANK N.A. 
  

 
  

 Table of Contents 

 

							
	 SECTION 1.
	 	DEFINITIONS; INTERPRETATION	  	 	1	  
			
	 Section 1.1
	 	Definitions	  	 	1	  
	 Section 1.2
	 	Interpretation	  	 	14	  
	 Section 1.3
	 	Change in Accounting Principles	  	 	14	  
			
	 SECTION 2.
	 	THE CREDIT FACILITIES	  	 	15	  
			
	 Section 2.1
	 	Operating Line Revolving Credit Commitment	  	 	15	  
	 Section 2.2
	 	[Intentionally Deleted.]	  	 	15	  
	 Section 2.3
	 	Applicable Interest Rate	  	 	15	  
	 Section 2.4
	 	Rate Determinations	  	 	15	  
	 Section 2.5
	 	Minimum Borrowing Amounts	  	 	15	  
	 Section 2.6
	 	Manner of Borrowing Loans; Notice to Bank	  	 	16	  
	 Section 2.7
	 	Maturity of Loans	  	 	16	  
	 Section 2.8
	 	Prepayments	  	 	16	  
	 Section 2.9
	 	Default Rate	  	 	16	  
	 Section 2.10
	 	Evidence of Indebtedness	  	 	16	  
	 Section 2.11
	 	Fees	  	 	17	  
	 Section 2.12
	 	Place and Application of Payments	  	 	17	  
			
	 SECTION 3.
	 	CHANGE IN CIRCUMSTANCES	  	 	18	  
			
	 Section 3.1
	 	Withholding Taxes	  	 	18	  
	 Section 3.2
	 	Documentary Taxes	  	 	18	  
	 Section 3.4
	 	Change of Law	  	 	18	  
	 Section 3.5
	 	Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR	  	 	18	  
	 Section 3.6
	 	Increased Cost and Reduced Return	  	 	19	  
	 Section 3.7
	 	Lending Offices	  	 	20	  
	 Section 3.8
	 	Discretion of Bank as to Manner of Funding	  	 	20	  
			
	 SECTION 4.
	 	CONDITIONS PRECEDENT	  	 	20	  
			
	 Section 4.1
	 	Initial Credit Event	  	 	20	  
	 Section 4.2
	 	All Credit Events	  	 	22	  
			
	 SECTION 5.
	 	REPRESENTATIONS AND WARRANTIES	  	 	23	  
			
	 Section 5.1
	 	Organization and Qualification	  	 	23	  
	 Section 5.2
	 	Subsidiaries	  	 	23	  
	 Section 5.3
	 	Authority and Validity of Obligations	  	 	24	  
	 Section 5.4
	 	Use of Proceeds; Margin Stock	  	 	24	  
	 Section 5.5
	 	Financial Reports	  	 	24	  
	 Section 5.6
	 	No Material Adverse Change	  	 	25	  

							
	 Section 5.7
	 	Full Disclosure	  	 	25	  
	 Section 5.8
	 	Trademarks, Franchises, and Licenses	  	 	25	  
	 Section 5.9
	 	Governmental Authority and Licensing	  	 	25	  
	 Section 5.10
	 	Good Title	  	 	25	  
	 Section 5.11
	 	Litigation and Other Controversies	  	 	26	  
	 Section 5.12
	 	Taxes	  	 	26	  
	 Section 5.13
	 	Approvals	  	 	26	  
	 Section 5.14
	 	Affiliate Transactions	  	 	26	  
	 Section 5.15
	 	Investment Company	  	 	26	  
	 Section 5.16
	 	ERISA	  	 	26	  
	 Section 5.17
	 	Compliance with Laws	  	 	26	  
	 Section 5.18
	 	OFAC	  	 	27	  
	 Section 5.19
	 	Other Agreements	  	 	27	  
	 Section 5.20
	 	Solvency	  	 	27	  
	 Section 5.21
	 	No Default	  	 	27	  
	 Section 5.22
	 	No Broker Fees	  	 	27	  
			
	 SECTION 6.
	 	AFFIRMATIVE COVENANTS	  	 	27	  
			
	 Section 6.1
	 	Maintenance of Business	  	 	27	  
	 Section 6.2
	 	Maintenance of Properties	  	 	28	  
	 Section 6.3
	 	Taxes and Assessments	  	 	28	  
	 Section 6.4
	 	Insurance	  	 	28	  
	 Section 6.5
	 	Financial Reports	  	 	29	  
	 Section 6.6
	 	Inspection	  	 	30	  
	 Section 6.7
	 	ERISA	  	 	30	  
	 Section 6.8
	 	Compliance with Laws	  	 	30	  
	 Section 6.9
	 	Compliance with OFAC Sanctions Programs	  	 	31	  
	 Section 6.10
	 	Formation of Subsidiaries	  	 	32	  
	 Section 6.13
	 	Banking Relationship	  	 	33	  
			
	 SECTION 7.
	 	NEGATIVE COVENANTS	  	 	34	  
			
	 Section 7.1
	 	Borrowings and Guaranties	  	 	34	  
	 Section 7.2
	 	Liens	  	 	35	  
	 Section 7.3
	 	Investments, Acquisitions, Loans and Advances	  	 	36	  
	 Section 7.4
	 	Mergers, Consolidations and Sales	  	 	37	  
	 Section 7.5
	 	Maintenance of Subsidiaries	  	 	37	  
	 Section 7.6
	 	[Intentionally Deleted]	  	 	37	  
	 Section 7.7
	 	Burdensome Contracts With Affiliates	  	 	38	  
	 Section 7.8
	 	No Changes in Fiscal Year	  	 	38	  
	 Section 7.9
	 	Change in the Nature of Business	  	 	38	  
	 Section 7.10
	 	No Restrictions	  	 	38	  
	 Section 7.11
	 	Subordinated Debt	  	 	38	  
	 Section 7.12
	 	Financial Covenants	  	 	38	  
	 Section 7.13
	 	ASA Certification	  	 	39	  
	 Section 7.14
	 	Net Orderly Liquidation Value of Eligible Inventory	  	 	39	  

  
 -ii- 

							
	 SECTION 8.
	 	EVENTS OF DEFAULT AND REMEDIES	  	 	39	  
			
	 Section 8.1
	 	Events of Default	  	 	39	  
	 Section 8.2
	 	Non Bankruptcy Defaults	  	 	41	  
	 Section 8.3
	 	Bankruptcy Defaults	  	 	42	  
			
	 SECTION 9.
	 	MISCELLANEOUS	  	 	42	  
			
	 Section 9.1
	 	Non-Enforcement of Foreign Security Agreement	  	 	42	  
	 Section 9.2
	 	No Waiver, Cumulative Remedies	  	 	42	  
	 Section 9.3
	 	Non-Business Days	  	 	42	  
	 Section 9.4
	 	Survival of Representations	  	 	42	  
	 Section 9.5
	 	Survival of Indemnity and Certain Other Provisions	  	 	43	  
	 Section 9.6
	 	Notices	  	 	43	  
	 Section 9.7
	 	Counterparts	  	 	43	  
	 Section 9.8
	 	Successors and Assigns	  	 	43	  
	 Section 9.9
	 	Amendments, etc.	  	 	43	  
	 Section 9.10
	 	Headings	  	 	44	  
	 Section 9.11
	 	Costs and Expenses; Indemnification	  	 	44	  
	 Section 9.12
	 	Set off	  	 	45	  
	 Section 9.13
	 	Entire Agreement	  	 	46	  
	 Section 9.14
	 	Governing Law	  	 	46	  
	 Section 9.15
	 	Severability of Provisions	  	 	46	  
	 Section 9.16
	 	Construction	  	 	46	  
	 Section 9.17
	 	Submission to Jurisdiction; Waiver of Venue; Service of Process	  	 	46	  
	 Section 9.18
	 	Waiver of Jury Trial	  	 	47	  
	 Section 9.19
	 	USA Patriot Act	  	 	47	  
	 Section 9.20
	 	Time is of the Essence	  	 	48	  

  
 -iii- 

 CREDIT AGREEMENT 

This Credit Agreement is entered into as of July 18, 2016, by and between Contrail Aviation Support, LLC, a North Carolina limited
liability company (“Borrower”), and BMO Harris Bank N.A., a national banking association (“Bank”). All capitalized terms used herein without definition shall have the meanings ascribed thereto in
Section 1.1. 
 PRELIMINARY STATEMENT 

Borrower has requested, and Bank has agreed to extend, certain credit facilities on the terms and conditions of this Agreement. 

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 SECTION 1. DEFINITIONS; INTERPRETATION. 

Section 1.1 Definitions. The following terms when used herein shall have the following meanings: 

“Account Debtor” means any Person obligated to make payment on any Receivable. 

“Adjusted One Month LIBOR” means, for any Borrowing of Eurodollar Loans, a rate per annum determined in accordance
with the following formula: 
  

			
	Adjusted One Month LIBOR =	  	LIBOR
		  	1 - Eurodollar Reserve Percentage

 “Affiliate” means any Person directly or indirectly controlling or controlled by, or
under direct or indirect common control with, another Person. A Person shall be deemed to control another Person for purposes of this definition if such Person possesses, directly or indirectly, the power to direct, or cause the direction of, the
management and policies of the other Person, whether through the ownership of voting securities, common directors, trustees or officers, by contract or otherwise. 

“Agreement” means this Credit Agreement, as the same may be amended, restated, supplemented, or otherwise modified
from time to time pursuant to the terms hereof. 
 “Applicable Margin” means, with respect to Loans, 2.80% per
annum 
 “Approved Country” means (i) the United States, Singapore, Germany, and/or United Kingdom;
(ii) China, France, Malaysia, Ireland and/or the Netherlands upon prior written notification from the Borrower to the Bank and the parties hereto entering into a Foreign Security Agreement (defined below in the definition of “Eligible
Inventory”), at Borrower’s cost and (iii) additional countries with the prior written approval of the Bank, which approval shall be subject to perfection of the Bank’s security interests in the Borrower’s Inventory in such
country at Borrower’s cost, and which approval shall not be otherwise unreasonably withheld. With 

  
 S-1 

 
respect to (ii) above, upon receiving the written notification from the Borrower, the Bank shall promptly undertake all appropriate actions, at Borrower’s cost, to have prepared and
present for execution to Borrower the Foreign Security Agreement(s) the Bank requires the Borrower to execute in connection with the Borrower’s Inventory in the country which is the subject of the written notification. 

“Assignment of Life Insurance Policy” means the Assignment of Life Insurance Policy on even date herewith executed by
the Borrower in favor of the Bank pursuant to which a $2,000,000.00 life insurance policy on the life of Joseph G. Kuhn is collaterally assigned to the Bank in order to secure the Note given by the Bank to the Borrower. 

“Authorized Representative” means those persons shown on the list of officers provided by Borrower pursuant to
Section 4.1 or on any update of any such list provided by Borrower to Bank, or any further or different officers of Borrower so named by any Authorized Representative of Borrower in a written notice to Bank. 

“Bank” is defined in the introductory paragraph of this Agreement. 

“Bankruptcy Proceeding” means, with respect to any Person, (i) consenting in writing to the appointment of a
conservator, receiver, trustee, custodian or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to it or of or relating to all, or substantially all, of its property, or
for the winding-up or liquidation of its affairs, (ii) admitting in writing its inability to pay its debts generally as they become due or (iii) filing a petition, or otherwise instituting, or consenting in writing to the institution
against it or, proceedings to take advantage of any law relating to bankruptcy, insolvency or reorganization or the relief of debtors under any federal, state or foreign bankruptcy, insolvency, receivership or similar law. 

“Base Rate” means, for any day, the rate per annum equal to the rate of interest announced or otherwise established by
Bank from time to time as its prime commercial rate as in effect on such day, with any change in the Base Rate resulting from a change in said prime commercial rate to be effective as of the date of the relevant change in said prime commercial rate
(it being acknowledged and agreed that such rate may not be Bank’s best or lowest rate). 
 “Borrower” is
defined in the introductory paragraph of this Agreement. 
 “Borrowing” means the total of Loans advanced on a
single date. A Borrowing is “advanced” on the day Bank advances funds comprising such Borrowing to, or for the credit of the Borrower. 

“Business Day” means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close
in Madison, Wisconsin. If the applicable Business Day relates to the determination of the LIBOR Index Rate, then Business Day means any day on which banks on which commercial banks are open for general business (including dealings in foreign
exchange and foreign currency deposits) in London, England. 

  
 S-2 

 “Capital Expenditures” means, with respect to any Person for any period,
the aggregate amount of all expenditures (whether paid in cash or accrued as a liability) by such Person during that period for the acquisition or leasing (pursuant to a Capital Lease) of fixed or capital assets or additions to property, plant, or
equipment (including replacements, capitalized repairs, and improvements) which should be capitalized on the balance sheet of such Person in accordance with GAAP. 

“Capital Lease” means any lease of Property which in accordance with GAAP is required to be capitalized
on the balance sheet of the lessee. 
 “Capitalized Lease Obligation” means, for any Person, the
amount of the liability shown on the balance sheet of such Person in respect of a Capital Lease determined in accordance with GAAP. 

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the
Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§9601 et seq., and any future amendments. 
 “Change
in Law” means the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in
the administration, interpretation or application thereof by any Governmental Authority or (iii) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that
notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules,
guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel
III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued. 

“Change of Control” means Air T, Inc. ceases to own, legally and beneficially, at least fifty-one percent
(51%) of the Voting Stock of Borrower. 
 “Closing Date” means the date of this Agreement or such later
Business Day upon which each condition described in Section 4.1 shall be satisfied or waived in a manner acceptable to Bank in its discretion. 

“Code” means the Internal Revenue Code of 1986, as amended, and any successor statute thereto. 

“Collateral” means all properties, rights, interests, and privileges from time to time subject to the Liens granted to
Bank, or any security trustee therefor, by the Collateral Documents. 
 “Collateral Documents” means the Security
Agreement and all other mortgages, deeds of trust, security agreements, pledge agreements, assignments, financing statements and other documents as shall from time to time secure or relate to the Obligations or any part thereof. 

“Commitment”means the Operating Line Revolving Credit Commitment. 

  
 S-3 

 “Controlled Group” means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under common control which, together with Borrower, are treated as a single employer under Section 414 of the Code. 

“Credit Event” means the advancing of any Loan. 

“Debt Service” means, with reference to any period, the sum of (i) the aggregate amount of payments
required to be made by the Borrower and any of its Subsidiaries during such period in respect of principal on all Indebtedness plus (ii) Interest Expense of Borrower and any of its Subsidiaries for such period. 

“Debt Service Coverage Ratio” means, as of the last day of each fiscal quarter, the Borrower and its Subsidiaries
shall maintain a ratio of (i) EBITDA for the 12-month period then ended minus the sum of (x) federal, state and local income taxes (and franchise taxes in lieu of income taxes) paid or required to be paid in cash by Borrower and its
Subsidiaries during the 12-month period the ended and (y) dividends, distributions, redemptions and repurchases paid to shareholders or other equity interest holders of Borrower and/or any of its Subsidiaries during the 12-month period then
ended to (ii) Debt Service for the 12-month period then ended, each computed in accordance with GAAP, of not less than 1.75 to 1.00. 

“Default” means any event or condition the occurrence of which would, with the passage of time or the giving of
notice, or both, constitute an Event of Default. 
 “Disposition” means the sale, lease, conveyance or other
disposition of Property, other than sales or other dispositions expressly permitted under Sections 7.4(a), 7.4(b), and 7.4(d). 

“Domestic Subsidiary” means a Subsidiary that is not a Foreign Subsidiary. 

“EBITDA” means, with respect to any period, Net Income of the Borrower and its Subsidiaries for such period
plus all amounts deducted in arriving at such Net Income amount in respect of (i) Interest Expense of Borrower and its Subsidiaries for such period, (ii) federal, state and local income taxes for such period, and (iii) depreciation
and amortization expense for such period. 
 “Eligible Inventory” means Inventory of Borrower and its Subsidiaries
(other than packaging, crating and supplies inventory) which: 
 (a) is an asset of such Person to which it has good and marketable title, is
freely assignable, and is subject to (i) in the case of Inventory located in the United States, a perfected, first priority Lien in favor of Bank free and clear of any other Liens and (ii) in the case of Inventory located in another
Approved Country, a Foreign Security Agreement; 
 (b) is located in the United States of America or other Approved Country at a Permitted
Collateral Location as set forth in (and as defined in) a Security Agreement and, in the case of any location not owned by such Person, which is at all times subject to a lien waiver agreement from such landlord or other third party to the extent
required by, and in form and substance satisfactory to, Bank. It is expressly acknowledged and agreed that foreign Inventory may be torn down and overhauled internationally so long as parts which are outside the United States for a period longer
than one hundred twenty (120) days shall be excluded from Eligible Inventory in accordance with paragraph (h) below. 

  
 S-4 

 (c) is not so identified to a contract to sell that it constitutes a Receivable; 

(d) is not obsolete, and is of good and merchantable quality free from any defects which might materially adversely affect the market value
thereof; 
 (e) is not covered by a warehouse receipt or similar document; 

(f) in the case of finished goods inventory, was produced pursuant to binding and existing purchase orders therefor to which such Person has
title; 
 (g) has not been owned by the Borrower or any Subsidiary for more than twenty four (24) months; 

(h) does not consist of parts stored in warehouses outside the United States for a period longer than 120 days (and if the storage of a part
exceeds this 120 day limitation, the part will be excluded from Eligible Inventory, and the value of such excluded part shall be calculated as described in (b) of the definition of Operating Line Borrowing Base); and 

(i) is not on consignment. 

“Eligible Receivables” means any Receivable of Borrower or any Subsidiary which: 

(a) arises out of the sale of finished goods inventory or/and aircraft engines, engine parts, airframes or airframe parts delivered to and
accepted by, or out of the rendition of services fully performed and accepted by, the Account Debtor on such Receivable, does not represent a pre-billed Receivable or a progress billing, and is net of any deposits made by or for the account of the
relevant Account Debtor; 
 (b) is payable in U.S. Dollars 

(c) if such right has arisen out of the sale of such goods shipped to, or out of the rendition of services to an Account Debtor located outside
the United States of America, such right is secured by an insurance policy on terms, and issued by Foreign Credit Insurance Association, Ex-Im Bank or another insurer, satisfactory to Bank (which in any event shall insure not less than one hundred
percent (100%) of the face amount of such Receivable and shall be subject to such deductions as are acceptable to Bank), and in each case which has been assigned or transferred to Bank in a manner acceptable to Bank; 

(d) is the valid, binding and legally enforceable obligation of the Account Debtor obligated thereon and such Account Debtor is not (i) a
Subsidiary or an Affiliate of Borrower, (ii) a shareholder, director, officer or employee of Borrower or any Subsidiary, (iii) the United States of America or other Approved Country, or any state, province, or political subdivision
thereof, or any department, agency or instrumentality of any of the foregoing, unless the Assignment of Claims Act or any similar national, state, provincial, or local statute, as the case may be, is complied with to the satisfaction of Bank,
(iv) a debtor under any proceeding under the United States Bankruptcy Code, as amended, or any other comparable bankruptcy or insolvency law, or (v) an assignor for the benefit of creditors; 

  
 S-5 

 (e) is not evidenced by an instrument or chattel paper unless the same has been endorsed and
delivered to Bank; 
 (f) is an asset of such Person to which it has good and marketable title, is freely assignable, and is subject to a
perfected, first priority Lien in favor of Bank free and clear of any other Liens; 
 (g) is not subject to any counterclaim or defense
asserted by the Account Debtor or subject to any offset or contra account payable to the Account Debtor (unless the amount of such Receivable is net of such contra account established to the reasonable satisfaction of Bank); 

(h) no surety bond was required or given in connection with said Receivable or the contract or purchase order out of which the same arose; 

(i) is evidenced by an invoice to the Account Debtor dated not more than five (5) Business Days subsequent to the shipment date of the
relevant inventory or completion of performance of the relevant services and is issued on ordinary trade terms requiring payment within ninety (90) days of invoice date; 

(j) is not unpaid more than 90 days after the original invoice date; provided that Receivables that are insured as described in subsection
(b) above may be unpaid for up to 120 days and still be eligible for inclusion in the Operating Line Borrowing Base; 
 (k) is not owed
by an Account Debtor who is obligated on Receivables more than 20% of the aggregate unpaid balance of which have been past due for longer than the relevant period specified in subsection (i) above unless Bank has approved the continued
eligibility thereof; 
 (l) would not cause the total Eligible Receivables owing from the Account Debtor and its Affiliates to exceed 35% of
all Eligible Receivables unless (a) one hundred percent (100%) of the Receivable from the Account Debtor and its Affiliates is secured by an insurance policy on terms, and issued by Foreign Credit Insurance Association, Ex-Im Bank or
another insurer, satisfactory to Bank (which in any event shall insure not less than one hundred percent (100%) of the face amount of such Receivable and shall be subject to such deductions as are acceptable to Bank), and in each case which has
been assigned or transferred to Bank in a manner acceptable to Bank, or (b) the Account Debtor’s long term debt or short term debt, as applicable, qualifies as Investment Grade; 

(m) does not arise from a sale on a bill and hold, guaranteed sale, sale or return, sale on approval, consignment or any other repurchase or
return basis; and 
 (n) is not otherwise deemed to be ineligible in the reasonable judgment of Bank (it being acknowledged and agreed
that with five (5) Business Days prior written notice any Receivable of Borrower or any Subsidiary may be deemed ineligible by Bank acting in its reasonable judgment). 

  
 S-6 

 “Environmental Claim” means any investigation, notice, violation, demand,
allegation, action, suit, injunction, judgment, order, consent decree, penalty, fine, lien, proceeding or claim (whether administrative, judicial or private in nature) arising (a) pursuant to, or in connection with an actual or alleged
violation of, any Environmental Law, (b) in connection with any Hazardous Material, (c) from any abatement, removal, remedial, corrective or response action in connection with a Hazardous Material, Environmental Law or order of a
Governmental Authority or (d) from any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment. 

“Environmental Law” means any current or future Legal Requirement pertaining to (a) the protection of health,
safety and the indoor or outdoor environment, (b) the conservation, management or use of natural resources and wildlife, (c) the protection or use of surface water or groundwater, (d) the management, manufacture, possession, presence,
use, generation, transportation, treatment, storage, disposal, Release, threatened Release, abatement, removal, remediation or handling of, or exposure to, any Hazardous Material or (e) pollution (including any Release to air, land, surface
water or groundwater), and any amendment, rule, regulation, order or directive issued thereunder. 
 “ERISA” means
the Employee Retirement Income Security Act of 1974, as amended, or any successor statute thereto. 
 “Eurodollar
Loan” means a Loan bearing interest by reference to Adjusted One Month LIBOR. 
 “Eurodollar Reserve
Percentage” means the maximum reserve percentage, expressed as a decimal, at which reserves (including any emergency, marginal, special, and supplemental reserves) are imposed by the Board of Governors of the Federal Reserve
System (or any successor) on “eurocurrency liabilities”, as defined in such Board’s Regulation D (or any successor thereto), subject to any amendments of such reserve requirement by such Board or its successor, taking into account any
transitional adjustments thereto. For purposes of this definition, the relevant Loans shall be deemed to be “eurocurrency liabilities” as defined in Regulation D without benefit or credit for any prorations, exemptions or offsets under
Regulation D. The Eurodollar Reserve Percentage shall be adjusted automatically on and as of the effective date of any change in any such reserve percentage. 

“Event of Default” means any event or condition identified as such in Section 8.1. 

“Event of Loss” means, with respect to any Property, any of the following: (a) any loss, destruction or damage of
such Property or (b) any condemnation, seizure, or taking, by exercise of the power of eminent domain or otherwise, of such Property, or confiscation of such Property or the requisition of the use of such Property. 

“Foreign Security Agreement” means an agreement entered into by the parties hereto which purports to give the Bank a
security interest or its equivalent on Inventory located within a country other than the United States in form and substance reasonably satisfactory to the Bank, governed by the law of such country, such as the Debenture dated of even date herewith
(governed by the law of England and Wales) and the Transfer by Way of Security dated of even date herewith (governed by the law of the Federal Republic of Germany. 

  
 S-7 

 “Foreign Subsidiary” means each Subsidiary which (a) is organized
under the laws of a jurisdiction other than the United States of America or any state thereof or the District of Columbia, (b) conducts substantially all of its business outside of the United States of America, and (c) has substantially
all of its assets outside of the United States of America. 
 “GAAP” means generally accepted accounting principles
set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies
with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination. 

“Governmental Authority” means the government of the United States of America or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank). 

“Guarantor” and “Guarantors” are each defined in Section 6.12(a). 

“Guaranty” and “Guaranties” are each defined in Section 6.12(a). 

“Hazardous Material” means any substance, chemical, compound, product, solid, gas, liquid, waste, byproduct,
pollutant, contaminant or material which is hazardous or toxic, and includes (a) asbestos, polychlorinated biphenyls and petroleum (including crude oil or any fraction thereof) and (b) any material classified or regulated as
“hazardous” or “toxic” or words of like import pursuant to an Environmental Law. 
 “Hazardous Material
Activity” means any activity, event or occurrence involving a Hazardous Material, including the manufacture, possession, presence, use, generation, transportation, treatment, storage, disposal, Release, threatened Release, abatement,
removal, remediation, handling of or corrective or response action to any Hazardous Material. 

“Indebtedness” means with reference to the Borrower and its Subsidiaries (a) all indebtedness
created, assume or incurred in any manner by the Borrower and its Subsidiaries representing money borrowed (including by the issuance of debt securities), (b) all indebtedness of the Borrower and its Subsidiaries for the deferred purchase price
of property or services (other than trade accounts payable arising in the ordinary course of business), (c) all indebtedness secured by any lien upon any property of Borrower and its Subsidiaries, whether or not the Borrower or any of its
Subsidiaries has assumed or becomes liable for the payment of such indebtedness, (d) all Capitalized Lease Obligations, and (e) all obligations of the Borrower and its Subsidiaries on or with respect to letters of credit, bankers’
acceptances and other extensions of credit whether or not representing obligations for borrowed money. 

  
 S-8 

 “Interest Expense” means, with reference to any period, the
sum of all interest charges (including imputed interest charges with respect to Capitalized Lease Obligations and all amortization of debt discount and expense) of the Borrower and its Subsidiaries for such period. 

“Interest Payment Date” means with respect to any Loan, the last day of each Interest Period with respect to such Loan
and on the maturity date. 
 “Interest Period” means, with respect to any Borrowing of Eurodollar Loans, the period
commencing on the date such Borrowing of Eurodollar Loans is advanced, continued, or created by conversion and ending 1 month thereafter; provided that: 

i. no Interest Period shall extend beyond the final maturity date of the relevant Loans; 

ii. whenever the last day of any Interest Period would otherwise be a day that is not a Business Day, the last day of such
Interest Period shall be extended to the next succeeding Business Day, provided that, if such extension would cause the last day of an Interest Period for a Borrowing of Eurodollar Loans to occur in the following calendar month, the last day
of such Interest Period shall be the immediately preceding Business Day; and 
 iii. for purposes of determining an Interest
Period for a Borrowing of Eurodollar Loans, a month means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month; provided that if there is no numerically corresponding day
in the month in which such an Interest Period is to end or if such an Interest Period begins on the last Business Day of a calendar month, then such Interest Period shall end on the last Business Day of the calendar month in which such Interest
Period is to end. 
 “Inventory” means any raw materials, finished goods inventory and aircraft engines, engine
parts, airframes and airframe parts of Borrower and its Subsidiaries (other than packaging, crating and supplies inventory). 

“Investment Grade” means a rating from S&P of an Account Debtor’s long term debt of BBB- or better; provided
that, if S&P does not rate the Account Debtor’s long term debt and another rating agency does, then the Borrower may, with the written consent of the Bank, which shall not be unreasonably withheld, rely on another rating agency’s
rating for the purpose of determining whether the Account Debtor has an investment grade rating and further provided that, if the long term debt is not rated by S&P or another rating agency, the Borrower may, with the written consent of the
Bank, which shall not be unreasonably withheld, rely on a rating from S&P or another rating agency of the Account Debtor’s short term debt of BBB- or better. 

“Legal Requirement” means any treaty, convention, statute, law, regulation, ordinance, license, permit, governmental
approval, injunction, judgment, order, consent decree or other requirement of any Governmental Authority, whether federal, state, or local. 

“LIBOR” means, for an Interest Period for a Borrowing of Eurodollar Loans, (a) the LIBOR Index Rate
for such Interest Period, if such rate is available, and (b) if the LIBOR Index Rate cannot be determined, the arithmetic average of the rates of interest per annum (rounded 

  
 S-9 

 
upwards, if necessary, to the nearest 1/100 of 1%) at which deposits in U.S. Dollars in immediately available funds are offered to Bank at 11:00 a.m. (London, England time) two (2) Business
Days before the beginning of such Interest Period by three (3) or more major banks in the interbank eurodollar market selected by Bank for delivery on the first day of and for a period equal to such Interest Period and in an amount equal or
comparable to the principal amount of the Eurodollar Loan scheduled to be made as part of such Borrowing, provided that in no event shall “LIBOR” be less than 0.00%. 

“LIBOR Index Rate” means, for any Interest Period, the rate per annum (rounded upwards, if necessary, to
the next higher one hundred thousandth of a percentage point) for deposits in U.S. Dollars for a period equal to such Interest Period, which appears on the LIBOR Index as of 11:00 a.m. (London, England time) on the day two (2) Business Days
before the commencement of such Interest Period. 
 “LIBOR Index” means the independent index which is
the one month ICE Benchmark Administration (ICE) LIBOR and reported on Bloomberg’s Financial Market’s terminal screen entitled “Official ICE LIBOR Fixings” (or on any successor or substitute page of such service, or any successor
to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by Bank from time to time for purposes of providing quotations of interest rates applicable to Dollar
deposits in the London interbank market). 
 “Lien” means any mortgage, lien, security interest, pledge, charge or
encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease or other title retention arrangement. 

“Loan” means any Operating Line Revolving Loan. 

“Loan Documents” means this Agreement, the Note, the Collateral Documents, the Guaranties, and each other instrument
or document to be delivered hereunder or thereunder or otherwise in connection therewith. 
 “Material Adverse
Effect” means (a) a material adverse change in, or material adverse effect upon, the operations, business, Property, condition (financial or otherwise) or prospects of Borrower or of Borrower and its Subsidiaries taken as a whole,
(b) a material impairment of the ability of Borrower or any Subsidiary to perform its material obligations under any Loan Document or (c) a material adverse effect upon (i) the legality, validity, binding effect or enforceability
against Borrower or any Subsidiary of any Loan Document or the rights and remedies of Bank thereunder or (ii) the perfection or priority of any Lien granted under any Collateral Document. 

“Maximum Leverage Ratio” means the ratio of Total Liabilities to Tangible Net Worth. 

“Moody’s” means Moody’s Investor Service Inc. 

“Net Income” means, with reference to any period, the net income (or net loss) of the Borrower and its
Subsidiaries for such period, but excluding any nonrecurring income and any extraordinary profits during such period and any taxes on such nonrecurring income and extraordinary profits. 

  
 S-10 

 “Note” is defined in Section 2.10(b). 

“Obligations” means all obligations of Borrower to pay principal and interest on the Loans, all fees and charges
payable hereunder, and all other payment obligations of Borrower or any of its Subsidiaries arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute
or contingent, and howsoever evidenced, held or acquired. 
 “OFAC” means the United States Department of Treasury
Office of Foreign Assets Control. 
 “OFAC Event” means the event specified in Section 6.9. 

“OFAC Sanctions Programs” means all laws, regulations, and Executive Orders administered by OFAC, including the Bank
Secrecy Act, anti-money laundering laws (including the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56 (a/k/a the USA Patriot Act)), and all economic and trade
sanction programs administered by OFAC, any and all similar United States federal laws, regulations or Executive Orders, and any similar laws, regulators or orders adopted by any State within the United States. 

“OFAC SDN List” means the list of the Specially Designated Nationals and Blocked Persons maintained by OFAC. 

“Operating Line Borrowing Base” means, as of any time it is to be determined, the sum of: 

(a) 80% of the then outstanding unpaid amount of Eligible Receivables; plus 

(b) 75% of the value (computed as follows: the lower of cost (first-in, first-out) or market value; when inventory items are sold
they are costed out under the gross profit method, the parts are assigned costs based on a percentage of the future sales price (based on prior history and industry standards), plus any additional repair costs, and sales price is established using
Pratt and Whitney pricing guidelines; and when parts are purchased, they are stated at the lower of cost or market; and this method shall not be amended, modified or revised without the Bank’s prior written consent, which consent may be
withheld by Bank, in Bank’s sole discretion) of Eligible Inventory (it being acknowledged and agreed that 75% of the cost of acquiring engines by the Borrower and its Subsidiaries with proceeds of Operating Line Revolving Loan(s) shall be
included in the Operating Line Borrower Base so long as such engines meet the requirements needed to qualify as Eligible Inventory); provided that the maximum amount of advances against all Eligible Inventory that may be included in the Operating
Line Borrowing Base shall not exceed $9,000,000 and that the maximum amount of advances against Eligible Inventory that has been owned by the Borrower or any Subsidiary for at least eighteen (18) months that may be included in the Operating
Line Borrowing Base shall not exceed $1,500,000;  

  
 S-11 

 provided that the Operating Line Borrowing Base shall be computed only as against and on so much of such
Collateral as is included on the Operating Line Borrowing Base Certificates furnished from time to time by Borrower pursuant to this Agreement and, if required by Bank pursuant to any of the terms hereof or any Collateral Document, as verified by
such other evidence reasonably required to be furnished to Bank pursuant hereto or pursuant to any such Collateral Document. 

“Operating Line Borrowing Base Certificate” means the certificate in the form of Exhibit A hereto, or in such
other form acceptable to Bank, to be delivered to Bank pursuant to Sections 4.2 and 6.5. 
 “Operating Line
Revolving Credit Commitment” means the obligation of Bank to make Revolving Loans hereunder in an aggregate principal or face amount at any one time outstanding not to exceed $12,000,000. 

“Operating Line Revolving Loan” is defined in Section 2.1. 

“Operating Line Revolving Note” is defined in Section 2.10(b). 

“PBGC” means the Pension Benefit Guaranty Corporation or any Person succeeding to any or all of its functions under
ERISA. 
 “Person” means an individual, partnership, corporation, limited liability company, association, trust,
unincorporated organization or any other entity or organization, including a government or agency or political subdivision thereof. 

“Plan” means any employee pension benefit plan covered by Title IV of ERISA or subject to the minimum funding
standards under Section 412 of the Code that either (a) is maintained by a member of the Controlled Group for employees of a member of the Controlled Group or (b) is maintained pursuant to a collective bargaining agreement or any
other arrangement under which more than one employer makes contributions and to which a member of the Controlled Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions.

 “Property” means, as to any Person, all types of real, personal, tangible, intangible or mixed property
owned by such Person whether or not included in the most recent balance sheet of such Person and its Subsidiaries under GAAP. 

“RCRA” means the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and
Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901 et seq., and any future amendments. 

“Receivables” means all rights to the payment of a monetary obligation, now or hereafter owing to Borrower or any
Subsidiary, evidenced by accounts, instruments, chattel paper, or general intangibles. 

  
 S-12 

 “Release” means any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, migration, dumping, or disposing into the indoor or outdoor environment, including the abandonment or discarding of barrels, drums, containers, tanks or other receptacles containing or previously
containing any Hazardous Material. 
 “Revolving Credit Termination Date” means January 13, 2018, or such
earlier date on which the Revolving Credit Commitment is terminated in whole pursuant to Section 2.13, 8.2 or 8.3. 

“S&P” means Standard & Poor’s Ratings Services Group, a division of The McGraw Hill Companies, Inc.

 “Security Agreement” means that certain General Security Agreement dated the date of this Agreement between
Borrower and its Subsidiaries and Bank and any other security or collateral agreement executed by the Borrower or any of its Subsidiaries in favor of the Bank, as any of the same may be amended, restated, supplemented, or otherwise modified from
time to time. 
 “Subordinated Debt” means Indebtedness for Borrowed Money which is subordinated in right of payment
to the prior payment of the Obligations pursuant to subordination provisions approved in writing by Bank and is otherwise pursuant to documentation that is, which is in an amount that is, and which contains interest rates, payment terms, maturities,
amortization schedules, covenants, defaults, remedies and other material terms that are, in each case, in form and substance satisfactory to Bank. 

“Subsidiary” means, as to any particular parent corporation or organization, any other corporation or organization
more than fifty percent (50%) of the outstanding Voting Stock of which is at the time directly or indirectly owned by such parent corporation or organization or by any one or more other entities which are themselves subsidiaries of such parent
corporation or organization. Unless otherwise expressly noted herein, the term “Subsidiary” means a Subsidiary of Borrower or of any of its direct or indirect Subsidiaries. 

“Tangible Net Worth” means, at any time, (i) total assets of the Borrower and its Subsidiaries at
such time, minus all intangible assets (i.e. goodwill, trademarks, patents, copyrights, organizational expenses, and similar intangible items) of the Borrower and its Subsidiaries minus (ii) Total Liabilities of Borrower and its Subsidiaries.
 
 “Total Liabilities” means, for any Person and at any time the same is to be determined, such
Person’s total liabilities, as determined in accordance with GAAP. 
 “Unfunded Vested Liabilities” means, for
any Plan at any time, the amount (if any) by which the present value of all vested non-forfeitable accrued benefits under such Plan exceeds the fair market value of all Plan assets allocable to such benefits, all determined as of the then most
recent valuation date for such Plan, but only to the extent that such excess represents a potential liability of a member of the Controlled Group to the PBGC or the Plan under Title IV of ERISA. 

“U.S. Dollars” and “$” each means the lawful currency of the United States of America. 

  
 S-13 

 “Voting Stock” of any Person means capital stock or other equity
interests of any class or classes (however designated) having ordinary power for the election of directors or other similar governing body of such Person, other than stock or other equity interests having such power only by reason of the happening
of a contingency. 
 “Welfare Plan” means a “welfare plan” as defined in Section 3(1) of ERISA. 

“Wholly-owned Subsidiary” means a Subsidiary of which all of the issued and outstanding shares of
capital stock (other than directors’ qualifying shares as required by law) or other equity interests are owned by Borrower and/or one or more Wholly-owned Subsidiaries within the meaning of this definition. 

Section 1.2 Interpretation. The foregoing definitions are equally applicable to both the singular and plural forms of the terms
defined. 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. The words
“include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” All references to time of day herein are references to Madison, Wisconsin, time unless otherwise
specifically provided. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement,
it shall be done in accordance with GAAP except where such principles are inconsistent with the specific provisions of this Agreement. 

Section 1.3 Change in Accounting Principles. If, after the date of this Agreement, there shall occur any change in GAAP from those
used in the preparation of the financial statements referred to in Section 5.5 and such change shall result in a change in the method of calculation of any financial covenant, standard or term found in this Agreement, either the Borrower
or the Bank may by notice to the other require that the Borrower and the Bank negotiate in good faith to amend such covenants, standards, and terms so as equitably to reflect such change in accounting principles, with the desired result being that
the criteria for evaluating the financial condition of the Borrower and its Subsidiaries shall be the same as if such change had not been made. No delay by the Borrower or the Bank in requiring such negotiation shall limit their right to so require
such a negotiation at any time after such a change in accounting principles. Until any such covenant, standard, or term is amended in accordance with this Section 1.3, financial covenants shall be computed and determined in accordance
with GAAP in effect prior to such change in accounting principles. Without limiting the generality of the foregoing, the Borrower shall neither be deemed to be in compliance with any financial covenant hereunder nor out of compliance with any
financial covenant hereunder if such state of compliance or noncompliance, as the case may be, would not exist but for the occurrence of a change in accounting principles after the date hereof. 

  
 S-14 

 SECTION 2. THE CREDIT FACILITIES. 

Section 2.1 Operating Line Revolving Credit Commitment. Subject to the terms and conditions hereof, Bank agrees to make a loan or
loans (individually a “Operating Line Revolving Loan” and collectively the “Operating Line Revolving Loans”) in U.S. Dollars to Borrower from time to time on a revolving basis up to the amount of the Operating Line
Revolving Credit Commitment, subject to any reductions thereof pursuant to the terms hereof, before the Revolving Credit Termination Date. The sum of the aggregate principal amount of Operating Line Revolving Loans at any time outstanding shall not
exceed the lesser of (i) the Operating Line Revolving Credit Commitment in effect at such time and (ii) the Operating Line Borrowing Base as determined based on the most recent Operating Line Borrowing Base Certificate. Operating Line
Revolving Loans may be repaid and the principal amount thereof re-borrowed before the Revolving Operating Line Credit Termination Date, subject to the terms and conditions hereof. 

Borrower shall use the proceeds of Operating Line Revolving Loans for its general working capital purposes (including, without limitation, the
acquisition of engines and parts, and taking possession of assets of third parties under a consignment agreement, which may or may not be covered by Borrower’s or such Subsidiary’s insurance) and for such other general corporate purposes
as are consistent with all applicable laws, which may include a contribution of capital to one or more of its Subsidiaries for general working capital purposes. Such working capital purposes may include the assumption of leases by the Borrower or a
Subsidiary for aircraft and/or aircraft airframes, engines, airframe parts and/or engine parts for the purpose of helping the Borrower or any of its Subsidiaries gain access to aircraft engines or engine parts for its general business, and may also
include, subject to the Bank’s prior written approval (which approval shall not be unreasonably withheld) and satisfaction by Borrower or Subsidiary of Borrower of terms and conditions determined necessary by the Bank, in the Bank’s
reasonable discretion, including, but not limited to being subject to all of the terms and conditions of this Agreement, the formation of one or more new Subsidiaries, or Borrower or a Subsidiary of Borrower entering into joint ventures to
facilitate the assumption of such leases, and any other general corporate purposes approved in writing by Bank. 
 Section 2.2
[Intentionally Deleted.] 
 Section 2.3 Applicable Interest Rate. Each Loan shall bear interest (computed on the basis of a
year of 360 days and the actual days elapsed) on the unpaid principal amount thereof from the date such Loan is advanced, until maturity (whether by acceleration or otherwise) at a rate per annum equal to the sum of the Applicable Margin plus the
Adjusted One Month LIBOR applicable for such Interest Period, payable by Borrower on each Interest Payment Date and at maturity (whether by acceleration or otherwise). 

Section 2.4 Rate Determinations. Bank shall determine the interest rate applicable to the Loans, and its determination thereof
shall be conclusive and binding except in the case of manifest error. 
 Section 2.5 Minimum Borrowing Amounts. Each Borrowing
of Loans shall be in an amount not less than $10,000. 

  
 S-15 

 Section 2.6 Manner of Borrowing Loans; Notice to Bank. Borrower shall give notice to
Bank by no later than 10:00 a.m. at least one (1) Business Day before the date on which Borrower requests Bank to advance a Borrowing of a Loan. All such notices concerning the advance shall specify the date of the requested advance (which
shall be a Business Day) and the amount of the requested Borrowing to be advanced. No Borrowing shall be advanced if any Default or Event of Default then exists. Borrower agrees that Bank may rely on any such telephonic, telecopy or other
telecommunication notice given by any person Bank in good faith believes is an Authorized Representative without the necessity of independent investigation, and in the event any such notice by telephone conflicts with any written confirmation such
telephonic notice shall govern if Bank has acted in reliance thereon. 
 Section 2.7 Maturity of Loans. All Loans, both for
principal and interest then outstanding, shall mature and be due and payable by Borrower on the Revolving Credit Termination Date. 

Section 2.8 Prepayments. Borrower may prepay in whole or in part (but, if in part, then in an amount not less than $10,000) upon
one (1) Business Days prior notice by Borrower to Bank. In addition, if at any time the sum of the unpaid principal balance of the Operating Line Revolving Loans then outstanding shall be in excess of the Operating Line Borrowing Base as
determined on the basis of the most recent Operating Line Borrowing Base Certificate, Borrower shall immediately upon written notice from the Bank pay over the amount of the excess to Bank as and for a mandatory prepayment on such Obligations. Any
amount of Operating Line Revolving Loans paid or prepaid before the Revolving Credit Termination Date may, subject to the terms and conditions of this Agreement, be borrowed, repaid and borrowed again. 

Section 2.9 Default Rate. Notwithstanding anything to the contrary contained herein, if any Loan or any part thereof is not paid
when due (whether by lapse of time, acceleration, or otherwise), or at the election of Bank upon notice to Borrower during the existence of any other Event of Default, Borrower shall pay interest (after as well as before entry of judgment thereon to
the extent permitted by law) on the principal amount of all Loans equal to the sum of 4.0% per annum plus the Applicable Margin plus the Base Rate from time to time in effect. 

Section 2.10 Evidence of Indebtedness. 

(a) Bank shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of Borrower hereunder,
including the amounts of principal and interest payable and paid to Bank from time to time hereunder. The entries maintained in the account(s) maintained by the Bank shall be prima facie evidence of the existence and amounts of the Obligations
therein recorded; provided, that the failure of Bank to maintain such account(s) or any error therein shall not in any manner affect the obligation of Borrower to repay the Obligations in accordance with their terms. 

(b) The Operating Line Revolving Loans shall be evidenced by a promissory note payable by the Borrower to the order of the Bank in the
amount of the Operating Line Revolving Credit Commitment (the “Operating Line Revolving Note” or “Note”).  

  
 S-16 

 Section 2.11 Fees. 

(a) Closing Fee. Borrower shall pay to Bank on the date hereof a non-refundable closing fee in the amount of $0.00. 

(b) Audit Fees. Borrower shall pay to Bank charges for audits of the Collateral performed by Bank or its agents or representatives in
such amounts as Bank may from time to time request (Bank acknowledging and agreeing that such charges shall be computed in the same manner as it at the time customarily uses for the assessment of charges for similar collateral audits);
provided that in the absence of any Default and Event of Default, Borrower shall not be required to pay Bank for more than one (1) such audit per calendar year. 

(c) Deposit Account Fees. Bank shall waive for four months from the date of this Agreement all fees that otherwise would be charged to
Borrower in connection with any deposit accounts Borrower maintains with Bank. 
 (d) Renewal Fees. In the event the parties extend,
renew or refinance this Agreement or any Loan or the Operating Line Revolving Loan Commitment, or enter into a similar credit arrangement after the final maturity date of the Loans (any of the foregoing, a “Loan Renewal”),
the Bank shall waive up to $1,500 of the renewal or other loan fees and $250 of any additional fees or costs that would otherwise be charged to the Borrower in connection with such Loan Renewal. In the event the parties then enter into a second Loan
Renewal thereafter, the Bank shall waive up to $1,500 of the renewal or other loan fees and $250 of any additional fees or costs that would otherwise be charged to the Borrower in connection with the second Loan Renewal. The amount of fees and
charges waived by the Bank pursuant to this section shall not exceed $3,500. 
 Section 2.12 Place and Application of Payments.
All payments of principal, interest, fees, and all other Obligations payable under the Loan Documents shall be made to Bank at its office at One West Main Street, Madison, Wisconsin (or at such other place as Bank may specify) no later than 1:00
p.m. on the date any such payment is due and payable. Payments received by Bank after 1:00 p.m. shall be deemed received as of the opening of business on the next Business Day. All such payments shall be made in lawful money of the United States of
America, in immediately available funds at the place of payment, without set-off or counterclaim and without reduction for, and free from, any and all present or future taxes, levies, imposts, duties, fees,
charges, deductions, withholdings, restrictions, and conditions of any nature imposed by any government or any political subdivision or taxing authority thereof (but excluding any taxes imposed on or measured by the net income of Bank). All payments
shall be applied (i) first, towards payment of interest and fees then due hereunder and under the other Loan Documents, and (ii) second, towards payment of principal. Borrower hereby irrevocably authorizes Bank to
(a) charge from time to time any of Borrower’s deposit accounts with Bank and/or (b) make Loans from time to time hereunder (and any such Loan may be made by Bank hereunder without regard to the provisions of Section 4
hereof), in each case for payment of any Obligation then due and payable (whether such Obligation is for interest then due on a Loan or otherwise); provided that Bank shall not be under any obligation to charge any such deposit account or
make any such Loan under this Section, and Bank shall incur no liability to Borrower or any other Person for its failure to do so. 

  
 S-17 

 (a) Commitment Terminations. Optional Commitment Terminations. Borrower shall have the
right at any time and from time to time, upon five (5) Business Days prior written notice to Bank (or such shorter period of time agreed to by Bank), to terminate all (but not less than all) of the Operating Line Revolving Credit Commitment
without premium or penalty; provided that the Operating Line Revolving Credit Commitment may not be reduced to an amount less than the sum of the aggregate principal amount of Operating Line Revolving Loans then outstanding. Borrower has no
right to partially terminate the Operating Line Revolving Credit Commitment and upon termination of the Operating Line Revolving Credit Commitment pursuant to this Section, this Agreement shall otherwise remain in full force and effect until the
unpaid aggregate principal amount of the Operating Line Revolving Loans then outstanding is zero ($0). 
 (b) No Reinstatement. Any
termination of the Commitment pursuant to this Section 2.13 may not be reinstated. 
 SECTION 3. CHANGE IN CIRCUMSTANCES. 

Section 3.1 Withholding Taxes. Except as otherwise required by law, each payment by Borrower under this Agreement or the other Loan
Documents shall be made without withholding for or on account of any present or future taxes (other than overall net income taxes on the recipient) imposed by or within the jurisdiction in which Borrower is domiciled, any jurisdiction from which
Borrower makes any payment, or (in each case) any political subdivision or taxing authority thereof or therein. If any such withholding is so required, Borrower shall make the withholding, pay the amount withheld to the appropriate Governmental
Authority before penalties attach thereto or interest accrues thereon, and forthwith pay such additional amount as may be necessary to ensure that the net amount actually received by Bank free and clear of such taxes (including such taxes on such
additional amount) is equal to the amount that Bank would have received had such withholding not been made. If Bank pays any amount in respect of any such taxes, penalties or interest, Borrower shall reimburse Bank for that payment on demand in the
currency in which such payment was made. If Borrower pays any such taxes, penalties or interest, it shall deliver official tax receipts evidencing that payment or certified copies thereof to Bank on or before the thirtieth day after payment. 

Section 3.2 Documentary Taxes. Borrower agrees to pay on demand any documentary, stamp or similar taxes payable in respect of this
Agreement or any other Loan Document, including interest and penalties, in the event any such taxes are assessed, irrespective of when such assessment is made and whether or not any credit is then in use or available hereunder. 

Section 3.3 [Intentionally Deleted] 

Section 3.4 Change of Law. Notwithstanding any other provisions of this Agreement or any other Loan Document, if at any time any
Change in Law or regulation or in the interpretation thereof makes it unlawful for Bank to make or continue to maintain any Loans or to perform its obligations as contemplated hereby, Bank shall promptly give notice thereof to Borrower and
Bank’s obligations to make or maintain such Loans under this Agreement shall be suspended until it is no longer unlawful for Bank to make or maintain such Loans. Borrower 

  
 S-18 

 
shall prepay on demand the outstanding principal amount of any such affected Loans, together with all interest accrued thereon and all other amounts then due and payable to Bank under this
Agreement; provided, subject to all of the terms and conditions of this Agreement, Borrower may then elect to borrow from Bank and Bank, if able, shall lend to Borrower the principal amount of the affected Loans by means of Loans bearing
interest at the Base Rate. 
 Section 3.5 Unavailability of Deposits or Inability to Ascertain, or Inadequacy of, LIBOR. If on
or prior to the first day of any Interest Period for any Borrowing of Eurodollar Loans: 
 (a) Bank determines that deposits in U.S. Dollars
(in the applicable amounts) are not being offered to it in the interbank eurodollar market for such Interest Period, or that by reason of circumstances affecting the interbank eurodollar market adequate and reasonable means do not exist for
ascertaining the applicable LIBOR, or 
 (b) Bank determines that (i) LIBOR as determined hereby will not adequately and fairly reflect
the cost to Bank of funding their Eurodollar Loans for such Interest Period or (ii) that the making or funding of Eurodollar Loans become impracticable, 

then Bank shall forthwith give notice thereof to Borrower, whereupon until Bank notifies Borrower that the circumstances giving rise to such suspension no
longer exist, the obligations of Bank to create, continue, or effect by conversion Eurodollar Loans shall be suspended. 

Section 3.6 Increased Cost and Reduced Return. If, on or after the date hereof, any Change in Law: 

(i) shall subject Bank (or its lending branch) to any tax, duty or other charge with respect to its Loans, its Note, or its
obligation to make Loans, or shall change the basis of taxation of payments to Bank (or its lending branch) of the principal of or interest on its Loans or Letter(s) of Credit, or any other amounts due under this Agreement or any other Loan Document
in respect of its Loans (except for changes in the rate of tax on the overall net income of Bank (or its lending branch) imposed by the jurisdiction in which Bank’s principal executive office or lending branch is located); or 

(ii) shall impose, modify or deem applicable any reserve, special deposit or similar requirement (including any such
requirement imposed by the Board of Governors of the Federal Reserve System, but excluding with respect to any Loans any such requirement included in an applicable Eurodollar Reserve Percentage) against assets of, deposits with or for the account
of, or credit extended by, Bank (or its lending branch) or shall impose on Bank (or its lending branch) or on the interbank market any other condition affecting its Loans, its Note, or its obligation to make Loans; 

and the result of any of the foregoing is to increase the cost to Bank (or its lending branch) of making or maintaining any Loan, or to reduce the amount of
any sum received or receivable by Bank (or its lending branch) under this Agreement or under any other Loan Document with respect thereto, by an amount deemed by Bank to be material, then, within fifteen (15) days after demand by Bank, Borrower
shall be obligated to pay to Bank such additional amount or amounts as will compensate Bank for such increased cost or reduction. 

  
 S-19 

 (b) If, after the date hereof, Bank shall have determined that any Change in Law has had the
effect of reducing the rate of return on Bank’s capital as a consequence of its obligations hereunder to a level below that which Bank could have achieved but for such Change in Law (taking into consideration Bank’s policies with respect
to capital adequacy) by an amount deemed by Bank to be material, then from time to time, within fifteen (15) days after demand by Bank, Borrower shall pay to Bank such additional amount or amounts as will compensate Bank for such reduction.

 (c) A certificate of Bank claiming compensation under this Section 3.6 and setting forth the additional amount or amounts to
be paid to it hereunder shall be conclusive absent manifest error. In determining such amount, Bank may use any reasonable averaging and attribution methods. 

Section 3.7 Lending Offices. Bank may, at its option, elect to make its Loans hereunder at the branch, office or affiliate
specified on the appropriate signature page hereof or at such other of its branches, offices or affiliates as it may from time to time elect. To the extent reasonably possible, Bank shall designate an alternative branch or funding office with
respect to its Loans to reduce any liability of Borrower to Bank under Section 3.6 or to avoid the unavailability of Loans under Section 3.5, so long as such designation is not otherwise disadvantageous to Bank. 

Section 3.8 Discretion of Bank as to Manner of Funding. Notwithstanding any other provision of this Agreement, Bank shall be
entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood, however, that for the purposes of this Agreement all determinations hereunder with respect to Loans shall be made as if Bank
had actually funded and maintained each Loan through the purchase of deposits in the interbank euro-dollar market having a maturity corresponding to such Loan’s Interest Period, and, in the case of any Eurodollar Loan, bearing an interest rate
equal to LIBOR for such Interest Period. 
 SECTION 4. CONDITIONS PRECEDENT. 

Section 4.1 Initial Credit Event. The obligation of Bank to participate in any initial Credit Event hereunder is subject to
satisfaction or waiver by Bank of the following conditions precedent: 
 (a) Bank shall have received each of the following, in each case
(i) duly executed by all applicable parties, (ii) dated a date satisfactory to Bank and (iii) in form and substance satisfactory to Bank: 

(i) this Agreement duly executed by Borrower and Bank; 

(ii) duly executed Note of Borrower dated the date hereof; 

  
 S-20 

 (iii) the Guaranties, the Security Agreement and each of the other Collateral
Documents required by Bank, together with (i) original stock certificates or other similar instruments or securities representing all of the issued and outstanding shares of capital stock or other equity interests in each of the entities being
pledged as of the Closing Date, (ii) stock powers for the Collateral consisting of the stock or other equity interest in each entity being pledged, executed in blank and undated, (iii) UCC financing statements to be filed against Borrower
and each Subsidiary, as debtor, in favor of Bank, as secured party, (iv) patent, trademark, and copyright collateral agreements to the extent requested by Bank, and (v) deposit account, securities account, and commodity account control
agreements to the extent requested by Bank; 
 (iv) evidence of all insurance required to be maintained under the Loan
Documents; 
 (v) copies of Borrower’s and each Subsidiary’s articles of organization and Operating Agreement (or
comparable organizational documents) and any amendments thereto, certified in each instance by its Secretary or Assistant Secretary; 

(vi) copies of resolutions of Borrower’s, each Guarantor which is a corporation, limited liability company (or other type
of legal business entity), and each Subsidiary’s Board of Directors (or similar governing body) authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party and the consummation of
the transactions contemplated hereby and thereby, together with specimen signatures of the persons authorized to execute such documents on Borrower’s and each Subsidiary’s behalf, all certified in each instance by its Secretary or
Assistant Secretary; 
 (vii) such documents and certifications as Bank may reasonably require to evidence that Borrower,
each Guarantor which is a corporation, limited liability company (or other type of legal business entity), and each Subsidiary is validly existing, in good standing, and qualified to engage in business in its jurisdiction of organization and in any
other jurisdiction in which the nature of Borrower’s or such Subsidiary’s business requires such qualification; 

(viii) a list of Borrower’s Authorized Representatives; 

(ix) such evaluations and certifications as it may reasonably require in order to satisfy itself as to the value of the
Collateral, the financial condition of Borrower and its Subsidiaries, and the lack of material contingent liabilities of Borrower and its Subsidiaries; 

(x) an Operating Line Borrowing Base Certificate in the form attached hereto as Exhibit A showing the computation of the
Operating Line Borrowing Base, in reasonable detail as of the close of business not earlier than thirty one (31) days prior to the making of the initial extension of credit hereunder; 

  
 S-21 

 (xi) financing statement, tax, and judgment lien search results against the
Property of Borrower and each Subsidiary evidencing the absence of Liens on its Property except as permitted by Section 7.2; 

(xii) pay off and lien release letters from secured creditors of Borrower and each Subsidiary setting forth, among other
things, the total amount of indebtedness outstanding and owing to them (or outstanding letters of credit issued for the account of Borrower or any Subsidiary) and containing an undertaking to cause to be delivered to Bank UCC termination statements
and any other lien release instruments necessary to release their Liens on the assets of Borrower and each Subsidiary; 

(xiii) evidence reasonably satisfactory to Bank that all indebtedness to creditors referenced in the preceding paragraph has
been (or concurrently with the initial Borrowing will be) paid in full, and that all agreements and instruments governing indebtedness and that all Liens securing such indebtedness have been (or concurrently with the initial Borrowing will be)
terminated. 
 (xiv) a fully executed Internal Revenue Service Form W-9 for Borrower; and 

(xv) such other agreements, instruments, documents, certificates, and opinions as Bank may reasonably request. 

(b) Bank shall have received the initial fees called for by Section 2.11, together with all other fees, costs and expenses required
to be paid by Borrower at or before closing; and 
 (c) the capital and organizational structure of Borrower and its Subsidiaries shall be
satisfactory to Bank. 
 Section 4.2 All Credit Events. 

The obligation of Bank to participate in any Credit Event (including any initial Credit Event) hereunder is subject to the following conditions
precedent: 
 (a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and
correct in all respect (or in all material respect if such representation or warranty is not by its terms already qualified as to materiality) as of said time, except to the extent the same expressly relate to an earlier date, in which case such
representations and warranties shall be and remain true and correct in all respect (or in all material respect if such representation or warranty is not by its terms already qualified as to materiality) as of such earlier date; 

(b) no Default or Event of Default shall have occurred and be continuing or would occur as a result of such Credit Event; 

(c) in the case of a Borrowing, Bank shall have received the notice required by Section 2.6; 

  
 S-22 

 (d) after giving effect to such Credit Event, the sum of the aggregate principal amount of
Operating Line Revolving Loans at any time outstanding shall not exceed the lesser of (i) the Operating Line Revolving Credit Commitment in effect at such time and (ii) the Operating Line Borrowing Base; and 

(e) such Credit Event shall not violate any order, judgment or decree of any court or other authority or any provision of law or regulation
applicable to Bank (including Regulation U of the Board of Governors of the Federal Reserve System) as then in effect. 
 Each request for a Borrowing
hereunder shall be deemed to be a representation and warranty by Borrower on the date on such Credit Event as to the facts specified in subsections (a) through (e) of this Section; provided that Bank may continue to make advances
under the Operating Line Revolving Credit Commitment, in the sole discretion of Bank, notwithstanding the failure of Borrower to satisfy one or more of the conditions set forth above and any such advances so made shall not be deemed a waiver of any
Default or Event of Default or other condition set forth above that may then exist. 
 SECTION 5. REPRESENTATIONS AND WARRANTIES. 

Borrower represents and warrants to Bank as follows: 

Section 5.1 Organization and Qualification. Borrower is (a) duly organized, validly existing, and in good standing as a
corporation under the laws of the State of Wisconsin, (b) has full and adequate power to own its Property and conduct its business as now conducted, and (c) is duly licensed or qualified and in good standing in each jurisdiction in which
the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying, except, with respect to this clause (c), where the failure to do so could not reasonably be expected to have a
Material Adverse Effect. 
 Section 5.2 Subsidiaries. Each Subsidiary (a) is duly organized, validly existing, and in good
standing under the laws of the jurisdiction in which it is organized, (b) has full and adequate power to own its Property and conduct its business as now conducted, and (c) is duly licensed or qualified and in good standing in each
jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying, except, with respect to this clause (c), where the failure to do so could not reasonably be
expected to have a Material Adverse Effect. Schedule 5.2 hereto identifies each Subsidiary, the jurisdiction of its organization, the percentage of issued and outstanding shares of each class of its capital stock or other equity interests
owned by Borrower and the other Subsidiaries and, if such percentage is not 100% (excluding directors’ qualifying shares as required by law), a description of each class of its authorized capital stock and other equity interests and the number
of shares of each class issued and outstanding. All of the outstanding shares of capital stock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and non-assessable and all such shares and other equity
interests indicated on Schedule 5.2 as owned by Borrower or another Subsidiary are owned, beneficially and of record, by Borrower or such Subsidiary free and clear of all Liens other than the Liens granted in favor of Bank pursuant to the
Collateral Documents. There are no outstanding commitments or other obligations of any Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of any
Subsidiary. 

  
 S-23 

 Section 5.3 Authority and Validity of Obligations. Borrower has full right and
authority to enter into this Agreement and the other Loan Documents executed by it, to make the borrowings herein provided for, to grant to Bank the Liens described in the Collateral Documents executed by Borrower, and to perform all of its
obligations hereunder and under the other Loan Documents executed by it. Each Subsidiary has full right and authority to enter into the Loan Documents executed by it, to guarantee the Obligations, to grant to Bank the Liens described in the
Collateral Documents executed by such Person, and to perform all of its obligations under the Loan Documents executed by it. The Loan Documents delivered by Borrower and its Subsidiaries have been duly authorized, executed, and delivered by such
Persons and constitute valid and binding obligations of Borrower and its Subsidiaries enforceable against them in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance or similar laws
affecting creditors’ rights generally and general principles of equity (regardless of whether the application of such principles is considered in a proceeding in equity or at law); and this Agreement and the other Loan Documents do not, nor
does the performance or observance by Borrower or any Subsidiary of any of the matters and things herein or therein provided for, (a) contravene or constitute a default under any provision of law or any judgment, injunction, order or decree
binding upon Borrower or any Subsidiary or any provision of the organizational documents (e.g., charter, certificate or articles of incorporation and bylaws, certificate or articles of association and operating agreement, partnership agreement, or
other similar organizational documents) of Borrower or any Subsidiary, (b) to the best of Borrower’s knowledge, conflict with, contravene or constitute a default under any material indenture or agreement of or affecting Borrower or any
Subsidiary or any of their Property, or (c) result in the creation or imposition of any Lien on any Property of Borrower or any Subsidiary other than the Liens granted in favor of Bank pursuant to the Collateral Documents. 

Section 5.4 Use of Proceeds; Margin Stock. Borrower shall use the proceeds of Operating Line Revolving Loans for the purposes
described in Section 2.1 above. Neither Borrower nor any Subsidiary is engaged, principally or as one of its important activities, in the business of purchasing or carrying margin stock or in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any Loan or any other extension of credit made hereunder will be used to purchase or
carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock. Margin stock (as hereinabove defined) constitutes less than 25% of the assets of Borrower and its Subsidiaries which are
subject to any limitation on sale, pledge or other restriction hereunder. 
 Section 5.5 Financial Reports. The consolidated
balance sheet of Borrower and its Subsidiaries as of December 31, 2015, and the related consolidated statements of income, retained earnings and cash flows of Borrower and its Subsidiaries for the fiscal year then ended, and accompanying notes
thereto, which financial statements are accompanied by the review report of Dixon Hughes Goodman LLP, independent public accountants, and the unaudited 

  
 S-24 

 
interim consolidated balance sheet of Borrower and its Subsidiaries as February 29, 2016, and the related consolidated statements of income of Borrower and its Subsidiaries for the two
(2) months then ended, heretofore furnished to Bank, fairly present the consolidated financial condition of Borrower and its Subsidiaries as at said dates and the consolidated results of their operations and cash flows for the periods then
ended in conformity with GAAP applied on a consistent basis. Neither Borrower nor any Subsidiary has contingent liabilities which are material to it other than as indicated on such financial statements or, with respect to future periods, on the
financial statements furnished pursuant to Section 6.5. 
 Section 5.6 No Material Adverse Change. To the best of
Borrower’s knowledge, since February 29, 2016, there has been no change in the condition (financial or otherwise) or business prospects of Borrower or any Subsidiary except those occurring in the ordinary course of business, none of which
individually or in the aggregate could reasonably be expected to have a Material Adverse Effect. 
 Section 5.7 Full Disclosure.
The statements and information furnished to Bank in connection with the negotiation of this Agreement and the other Loan Documents and the commitments by Bank to provide all or part of the financing contemplated hereby do not contain any untrue
statements of a material fact or omit a material fact necessary to make the statements contained herein or therein not misleading. 

Section 5.8 Trademarks, Franchises, and Licenses. Borrower and its Subsidiaries own, possess, or have the right to use all
necessary patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, know how, and confidential commercial and proprietary information to conduct their businesses as now conducted, without known conflict with
any patent, license, franchise, trademark, trade name, trade style, copyright or other proprietary right of any other Person. 

Section 5.9 Governmental Authority and Licensing. Borrower and its Subsidiaries have received all licenses, permits, and approvals
of all Governmental Authorities, if any, necessary to conduct their businesses, in each case except where the failure to obtain or maintain the same could not reasonably be expected to have a Material Adverse Effect. No investigation or proceeding
is pending or, to the knowledge of Borrower, threatened, before or by any Governmental Authority that could reasonably be expected to have a Material Adverse Effect. 

Section 5.10 Good Title. Borrower and its Subsidiaries have good and defensible title (or valid leasehold interests) to their
assets as reflected on the most recent consolidated balance sheet of Borrower and its Subsidiaries furnished to Bank (except for sales of assets in the ordinary course of business), subject to no Liens other than such thereof as are permitted by
Section 7.2. It is acknowledged and agreed by Bank that Borrower and/or a Subsidiary of Borrower may from time to time have possession of assets of third parties under a consignment agreement, which may or may not be covered by
Borrower’s or such Subsidiary’s insurance, as applicable, and the interest of Borrower or Subsidiary, as applicable, shall not be one of ownership or leasehold. 

  
 S-25 

 Section 5.11 Litigation and Other Controversies. There is no litigation or
governmental or arbitration proceeding or labor controversy pending, nor to the knowledge of Borrower threatened, against Borrower or any Subsidiary or any of their Property which, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect. 
 Section 5.12 Taxes. All tax returns required to be filed by Borrower or any Subsidiary in any
jurisdiction have, in fact, been filed, and all taxes, assessments, fees, and other governmental charges upon Borrower or any Subsidiary or upon any of its Property, income or franchises, which are shown to be due and payable in such returns, have
been paid, except such taxes, assessments, fees and governmental charges, if any, as are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and as to which adequate reserves established
in accordance with GAAP have been provided. Borrower does not know of any proposed additional tax assessment against it or its Subsidiaries for which adequate provisions in accordance with GAAP have not been made on their accounts. Adequate
provisions in accordance with GAAP for taxes on the books of Borrower and each Subsidiary have been made for all open years, and for its current fiscal period. 

Section 5.13 Approvals. No authorization, consent, license or exemption from, or filing or registration with, any court or
Governmental Authority, nor any approval or consent of any other Person, is or will be necessary to the valid execution, delivery or performance by Borrower or any Subsidiary of any Loan Document, except for such approvals which have been obtained
prior to the date of this Agreement and remain in full force and effect. 
 Section 5.14 Affiliate Transactions. Neither
Borrower nor any Subsidiary is a party to any contracts or agreements with any of its Affiliates on terms and conditions which are less favorable to Borrower or such Subsidiary than would be usual and customary in similar contracts or agreements
between Persons not affiliated with each other. 
 Section 5.15 Investment Company. Neither Borrower nor any Subsidiary is an
“investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

Section 5.16 ERISA. Borrower and each other member of its Controlled Group has fulfilled its obligations under the minimum funding
standards of and is in compliance in all material respects with ERISA and the Code to the extent applicable to it and has not incurred any liability to the PBGC or a Plan under Title IV of ERISA other than a liability to the PBGC for premiums under
Section 4007 of ERISA. Neither Borrower nor any Subsidiary has any contingent liabilities with respect to any post-retirement benefits under a Welfare Plan, other than liability for continuation coverage described in article 6 of Title I of
ERISA. 
 Section 5.17 Compliance with Laws. To the best of Borrower’s knowledge, Borrower and its Subsidiaries are in
compliance with the requirements of all federal, state and local laws, rules and regulations applicable to or pertaining to their Property or business operations (including the Occupational Safety and Health Act of 1970, the Americans with
Disabilities Act of 1990, and laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes and substances), except for any such noncompliance that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse 

  
 S-26 

 
Effect. Neither Borrower nor any Subsidiary has received notice to the effect that its operations are not in compliance with any of the requirements of applicable federal, state or local
environmental, health, and safety statutes and regulations or is the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release of any toxic or hazardous waste or substance into the
environment, except where any such noncompliance or remedial action, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 

Section 5.18 OFAC. To the best of Borrower’s knowledge, (a) Borrower is in compliance with the requirements of all OFAC
Sanctions Programs applicable to it, (b) each Subsidiary of Borrower is in compliance with the requirements of all OFAC Sanctions Programs applicable to such Subsidiary, (c) Borrower has provided to Bank all information regarding Borrower
and its Affiliates and Subsidiaries necessary for Bank to comply with all applicable OFAC Sanctions Programs, and (d) neither Borrower nor any of its Affiliates or Subsidiaries is, as of the date hereof, named on the current OFAC SDN List. 

Section 5.19 Other Agreements. Neither Borrower nor any Subsidiary is in default under the terms of any covenant, indenture or
agreement of or affecting such Person or any of its Property, except for any such default that could not reasonably be expected to have a Material Adverse Effect. 

Section 5.20 Solvency. Borrower and its Subsidiaries are solvent, able to pay their debts as they become due, and have sufficient
capital to carry on their business and all businesses in which they are about to engage. 
 Section 5.21 No Default. No Default
or Event of Default has occurred and is continuing. 
 Section 5.22 No Broker Fees. No broker’s or finder’s fee or
commission will be payable with respect hereto or any of the transactions contemplated hereby; and Borrower hereby agrees to indemnify Bank against, and agree that they will hold Bank harmless from, any claim, demand, or liability for any such
broker’s or finder’s fees alleged to have been incurred in connection herewith or therewith and any expenses (including reasonable attorneys’ fees) arising in connection with any such claim, demand, or liability. 

SECTION 6. AFFIRMATIVE COVENANTS. 
 So
long as all or any portion of the Commitment remains outstanding or any Obligations hereunder remain outstanding, Borrower agrees that: 

Section 6.1 Maintenance of Business. Borrower shall, and shall cause each Subsidiary to, preserve and maintain its existence,
except as otherwise provided in Section 7.4(c). Borrower shall, and shall cause each Subsidiary to, preserve and keep in force and effect all licenses, permits, franchises, approvals, patents, trademarks, trade names, trade styles,
copyrights, and other proprietary rights necessary to the proper conduct of its business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

  
 S-27 

 Section 6.2 Maintenance of Properties. Borrower shall, and shall cause each
Subsidiary to, maintain, preserve, and keep its property, plant, and equipment in good repair, working order and condition (ordinary wear and tear excepted), and shall from time to time make all needful and proper repairs, renewals, replacements,
additions, and betterments thereto so that at all times the efficiency thereof shall be fully preserved and maintained, in each case except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

Section 6.3 Taxes and Assessments. Borrower shall duly pay and discharge, and shall cause each Subsidiary to duly pay and
discharge, all taxes, rates, assessments, fees, and governmental charges upon or against it or its Property, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that the same are being
contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves are provided therefor. 

Section 6.4 Insurance. Borrower shall insure and keep insured, and shall cause each Subsidiary to insure and keep insured, with
good and responsible insurance companies, all insurable Property owned by it which is of a character usually insured by Persons similarly situated and operating like Properties against loss or damage from such hazards and risks (including flood
insurance with respect to any improvements on real Property consisting of building or parking facilities in an area designated by a governmental body as having special flood hazards), and in such amounts, as are insured by Persons similarly situated
and operating like Properties, but in no event at any time in an amount less than the replacement value of the Collateral. Borrower shall also maintain, and shall cause each Subsidiary to maintain, insurance with respect to the business of Borrower
and its Subsidiaries, covering commercial general liability, statutory worker’s compensation and occupational disease, statutory structural work act liability, and business interruption and such other risks with good and responsible insurance
companies, in such amounts and on such terms as Bank shall reasonably request, but in any event as and to the extent usually insured by Persons similarly situated and conducting similar businesses. Borrower shall in any event maintain insurance on
the Collateral to the extent required by the Collateral Documents. All such policies of insurance shall contain satisfactory lender’s loss payable endorsements, naming Bank as a loss payee, assignee or additional insured, as appropriate, as its
interest may appear, and showing only such other loss payees, assignees and additional insureds as are satisfactory to Bank. Each policy of insurance or endorsement shall contain a clause requiring the insurer to give not less than 30 days’
prior written notice to Bank in the event of cancellation of the policy for any reason whatsoever and a clause specifying that the interest of Bank shall not be impaired or invalidated by any act or neglect of Borrower, any of its Subsidiaries, or
the owner of the premises or Property or by the occupation of the premises for purposes more hazardous than are permitted by said policy. Borrower shall deliver to Bank (a) on the date of this Agreement, and at such other times as Bank shall
reasonably request, certificates evidencing the maintenance of insurance required hereunder, (b) prior to the termination of any such policies, certificates evidencing the renewal thereof, and (c) promptly following request by Bank, copies
of all insurance policies of Borrower and its Subsidiaries. Borrower also agrees to deliver to Bank, promptly as rendered, true copies of all reports made in any reporting forms to insurance companies. 

  
 S-28 

 Section 6.5 Financial Reports. Except for purposes of calculating the Operating Line
Borrowing Base, Borrower shall, and shall cause each Subsidiary to, maintain a standard system of accounting in accordance with GAAP and shall furnish to Bank and its duly authorized representatives such information respecting the business and
financial condition of Borrower and each Subsidiary as Bank may reasonably request; and without any request, shall furnish to Bank: 
 (a) as
soon as available, and in any event no later than twenty (20) days after the last day of each calendar month, an Operating Line Borrowing Base Certificate showing the computation of the Operating Line Borrowing Base in reasonable detail as of
the close of business on the last day of such month, prepared by Borrower and certified to by its chief financial officer or another officer of Borrower acceptable to Bank, which shall be accompanied by supporting accounts receivable and accounts
payable aging documentation from Borrower in form and substance reasonably acceptable to Bank, dated as of the same date as the Operating Line Borrowing Base Certificate. 

(b) [Intentionally Deleted]; 
 (c)
as soon as available, and in any event no later than twenty (20) days after the last day of each calendar month, including the calendar month ending on the last day of the fiscal year of Borrower, a copy of balance sheet of Borrower as of the
last day of such period and statements of income of Borrower for such period and the fiscal year-to-date period then ended, each in reasonable detail, prepared by Borrower in accordance with GAAP and certified to by its chief financial officer or
such other officer acceptable to Bank; 
 (d) as soon as available, and in any event no later than one hundred twenty (120) days after
the last day of each fiscal year of Borrower, a copy of the balance sheet of Borrower as of the close of such period and statements of income, retained earnings, and cash flows of Borrower for such period, and accompanying notes thereto, each in
reasonable detail showing in comparative form the figures for the previous fiscal year, audited by Dixon Hughes Goodman LLP or another firm of independent public accountants of recognized standing, selected by Borrower and satisfactory to Bank
except that for fiscal year ending December 31, 2015,the balance sheet of Borrower and statements of income, retained earnings, and cash flows of Borrower only need to be reviewed by Henkamp Krueger & Co., or another firm of
independent public accountants of recognized standing, selected by Borrower and satisfactory to Bank; 
 (e) [Intentionally Deleted] 

(f) prior to the advance of any Loan totaling individually $1,000,000 or more, a written copy of an engine or bulk wholesale purchase invoice
to be financed with such Loan; 
 (g) as soon as available, and in any event no later than one hundred twenty (120) days after the last
day of each fiscal year of Borrower, a copy of an appraisal of the raw materials or finished goods of Borrower or its Subsidiaries as of the close of such fiscal year in reasonable detail prepared by a qualified appraiser and in form satisfactory to
Bank; 

  
 S-29 

 (h) as soon as available, and in any event no later than ninety (90) days after the last day
of each fiscal year of Borrower beginning with fiscal year ending December 31, 2017, the Bank shall have performed, at Borrower’s cost, a field exam report as of the close of such fiscal year in reasonable detail and in form satisfactory
to Bank; 
 (i) promptly after receipt thereof, any additional written reports and management letters concerning significant aspects of
Borrower’s or any Subsidiary’s operations and financial affairs given to it by its independent public accountants; 
 (j) promptly
after receipt thereof, a copy of each audit made by any regulatory agency of the books and records of Borrower or any Subsidiary or of notice of any material noncompliance with any applicable law, regulation or guideline relating to Borrower or any
Subsidiary, or its business; 
 (k) as soon as available, and in any event no later than thirty (30) days after the filing, a copy of
the Federal and State tax returns filed by Joseph G. Kuhn; 
 (l) as soon as available, and in any event no later than one hundred twenty
(120) days of each year, a copy of the personal financial statement for Joseph G. Kuhn in reasonable detail and in form satisfactory to Bank; and 

(m) promptly after knowledge thereof shall have come to the attention of any responsible officer of Borrower, written notice of (i) any
threatened or pending litigation or governmental or arbitration proceeding or labor controversy against Borrower or any Subsidiary or any of their Property which, if adversely determined, could reasonably be expected to have a Material Adverse
Effect or (ii) the occurrence of any Default or Event of Default hereunder. 
 Section 6.6 Inspection. Upon prior written
notice from the Bank, Borrower shall, and shall cause each Subsidiary to, permit Bank and its duly authorized representatives and agents to visit and inspect any of its Property, corporate books, and financial records, to examine and make copies of
its books of accounts and other financial records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its officers, employees and independent public accountants (and by this provision Borrower hereby
authorizes such accountants to discuss with Bank the finances and affairs of Borrower and its Subsidiaries) during business hours at such reasonable times and intervals as Bank may designate. 

Section 6.7 ERISA. Borrower shall, and shall cause each Subsidiary to, promptly notify Bank of: (a) receipt of any notice
from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor, and (c) its intention to terminate or withdraw from any Plan. 

Section 6.8 Compliance with Laws.  

(a) Borrower shall, and shall cause each Subsidiary to, comply in all respects with the requirements of all federal, state, and local laws,
rules, regulations, ordinances and orders applicable to or pertaining to its Property or business operations, except where any such non- compliance, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect
or result in a Lien upon any of its Property. 

  
 S-30 

 (b) Without limiting the agreements set forth in Section 6.8(a) above, Borrower
shall, and shall cause each Subsidiary to, at all times, do the following to the extent the failure to do so, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect: (i) comply in all material respects
with, and maintain each of the Premises in compliance in all material respects with, all applicable Environmental Laws; (ii) require that each tenant and subtenant, if any, of any of the Premises or any part thereof comply in all material
respects with all applicable Environmental Laws; (iii) obtain and maintain in full force and effect all material governmental approvals required by any applicable Environmental Law for operations at each of the Premises; (iv) cure any
material violation by it or at any of the Premises of applicable Environmental Laws; (v) not allow the presence or operation at any of the Premises of any (1) landfill or dump or (2) hazardous waste management facility or solid waste
disposal facility as defined pursuant to RCRA or any comparable state law; (vi) not manufacture, use, generate, transport, treat, store, release, dispose or handle any Hazardous Material at any of the Premises except in the ordinary course of
its business and in de minimis amounts; (vii) within ten (10) Business Days notify Bank in writing of and provide any reasonably requested documents upon learning of any of the following in connection with Borrower or any Subsidiary
or any of the Premises: (1) any material liability for response or corrective action, natural resource damage or other harm pursuant to CERCLA, RCRA or any comparable state law; (2) any material Environmental Claim; (3) any material
violation of an Environmental Law or material Release, threatened Release or disposal of a Hazardous Material; (4) any restriction on the ownership, occupancy, use or transferability arising pursuant to any (x) Release, threatened Release
or disposal of a Hazardous Material or (y) Environmental Law; or (5) any environmental, natural resource, health or safety condition, which could reasonably be expected to have a Material Adverse Effect; (viii) conduct at its expense
any investigation, study, sampling, testing, abatement, cleanup, removal, remediation or other response action necessary to remove, remediate, clean up or abate any material Release, threatened Release or disposal of a Hazardous Material as required
by any applicable Environmental Law, (ix) abide by and observe any restrictions on the use of the Premises imposed by any Governmental Authority as set forth in a deed or other instrument affecting Borrower’s or any Subsidiary’s
interest therein; (x) promptly provide or otherwise make available to Bank any reasonably requested environmental record concerning the Premises which Borrower or any Subsidiary possesses or can reasonably obtain; and (xi) perform,
satisfy, and implement any operation or maintenance actions required by any Governmental Authority or Environmental Law, or included in any no further action letter or covenant not to sue issued by any Governmental Authority under any Environmental
Law. 
 Section 6.9 Compliance with OFAC Sanctions Programs.  

(a) Borrower shall at all times comply with the requirements of all OFAC Sanctions Programs applicable to Borrower and shall cause each of its
Subsidiaries to comply with the requirements of all OFAC Sanctions Programs applicable to such Subsidiary. 
 (b) Borrower shall provide Bank
any information regarding Borrower, its Affiliates, and its Subsidiaries necessary for Bank to comply with all applicable OFAC Sanctions Programs; subject however, in the case of Affiliates, to Borrower’s ability to provide information
applicable to them. 

  
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 (c) If Borrower obtains actual knowledge or receives any written notice that Borrower, any
Affiliate or any Subsidiary is named on the then current OFAC SDN List (such occurrence, an “OFAC Event”), Borrower shall promptly (i) give written notice to Bank of such OFAC Event, and (ii) comply with all applicable
laws with respect to such OFAC Event (regardless of whether the party included on the OFAC SDN List is located within the jurisdiction of the United States of America), including the OFAC Sanctions Programs, and Borrower hereby authorizes and
consents to Bank taking any and all steps Bank deems necessary, in its sole discretion, to avoid violation of all applicable laws with respect to any such OFAC Event, including the requirements of the OFAC Sanctions Programs (including the freezing
and/or blocking of assets and reporting such action to OFAC). 
 Section 6.10 Formation of Subsidiaries. Promptly upon the
formation or acquisition of any Subsidiary which is not a Foreign Subsidiary, Borrower shall provide Bank notice thereof and timely comply with the requirements of Section 6.12 (at which time Schedule 5.2 shall be deemed amended to include
reference to such Subsidiary). Except for Foreign Subsidiaries existing on the Closing Date and identified on Schedule 5.2, Borrower shall not, nor shall it permit any Subsidiary to, form or acquire any Foreign Subsidiary without the Bank’s
prior written consent, which consent may be withheld by Bank, in Bank’s sole discretion. 
 Section 6.11 [Intentionally
Deleted] 
 Section 6.12 Guaranties and Collateral. 

(a) Guaranties. The payment and performance of the Obligations shall at all times be guaranteed by Joseph G. Kuhn, and Air T,
Inc. and by each direct and indirect Subsidiary of Borrower pursuant to one or more guaranty agreements in form and substance acceptable to Bank (as the same may be amended, restated, supplemented, or otherwise modified from time to time)
individually a “Guaranty” and collectively the “Guaranties” and Joseph G. Kuhn, Air T, Inc. and each such Subsidiary executing and delivering a Guaranty being referred to herein as a “Guarantor” and
collectively the “Guarantors”. 
 (b) Collateral. (i) The Obligations shall be secured by valid, perfected, and
enforceable Liens on all right, title, and interest of Borrower and each Subsidiary in all of their accounts, chattel paper, instruments, documents, general intangibles, letter of credit rights, supporting obligations, deposit accounts, investment
property, inventory, equipment, fixtures, commercial tort claims, real estate and certain other Property, whether now owned or hereafter acquired or arising, and all proceeds thereof (collectively, the “Assets”) in the case of Assets
located in the United States, and (ii) in the case of Assets located in another Approved Country, the parties hereto shall enter or shall have entered into a Foreign Security Agreement. Without limiting the foregoing, Bank shall receive a
collateral assignment of all insurance maintained by the Borrower or any of its Subsidiaries at any time insuring the payment of receivables owed to the Borrower or any of its Subsidiaries. Borrower acknowledges and agrees that (i) the Liens on
the Collateral located within the United States shall be valid and perfected first priority Liens, in each case pursuant to one or more Collateral Documents from such Persons, each in form and substance satisfactory to Bank and (ii) in the case
of Collateral located in another Approved Country, the parties hereto shall enter into a Foreign Security Agreement; provided, however, that in the case of Assets not located in an Approved Country, the Borrower shall not be required to enter
into or provide any Collateral Documents other than the Security Agreement. 

  
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 (c) Liens on Real Property. In the event that Borrower or any Subsidiary owns or hereafter
acquires any real property, Borrower shall, or shall cause such Subsidiary to, execute and deliver to Bank a mortgage or deed of trust acceptable in form and substance to Bank for the purpose of granting to Bank (or a security trustee therefor) a
Lien on such real property to secure the Obligations, shall pay all taxes, costs, and expenses incurred by Bank in recording such mortgage or deed of trust, and shall supply to Bank at Borrower’s cost and expense a survey, environmental report,
hazard insurance policy, appraisal report, and a mortgagee’s policy of title insurance from a title insurer acceptable to Bank insuring the validity of such mortgage or deed of trust and its status as a first Lien (subject to Liens expressly
permitted by this Agreement) on the real property encumbered thereby and such other instrument, documents, certificates, and opinions reasonably required by Bank in connection therewith. 

(d) Further Assurances. Borrower agrees that it shall, and shall cause each Subsidiary to, from time to time at the request of Bank,
execute and deliver such documents and do such acts and things as Bank may reasonably request in order to provide for or perfect or protect Bank’s Liens on the Collateral. 

Section 6.13 Banking Relationship. Borrower will and will cause each Subsidiary to establish and maintain its primary banking
depository and disbursement relationship with the Bank, including establishing and maintaining operating, administrative, cash management, collection activity, payroll and disbursement accounts for the conduct of its business. 

Section 6.14 Regular Review. The Borrower agrees to furnish such information respecting the business, assets and financial
condition of the Borrower as Lender may reasonably request from time to time. The Borrower shall furnish such information as soon as possible, but in any event within thirty (30) days after the request. Based upon this information,
Lender will conduct a regular review of your loan. The Borrower and Guarantor(s) agree that the Lender in its discretion may obtain a credit bureau report on the Borrower and Guarantor(s) in order to evaluate the Borrower and Guarantor’s
creditworthiness and ability to meet its obligations under the loan, and subsequently for any future purposes in connection with existing or contemplated extensions of credit to the Borrower, to the Guarantor(s) or to any other entity in which the
Guarantor(s) is or is expected to be guarantor, owner, director, manager or officer. The Borrower also agrees that the Lender may exchange information about the Borrower and Guarantor(s) and their obligations under this Note with
Borrower’s references, other businesses (including affiliates of the Lender), or any Guarantor(s), and credit reporting agencies and may confirm any information provided by the Borrower. 

Section 6.15 Sharing and Use of Information within the BMO Harris Family of Companies. Lender may share within the BMO Harris
Family of Companies information about Borrower and Guarantor(s) transactions or experiences with Lender, information Borrower and Guarantor(s) supply on Borrower and Guarantor(s) account applications, and information Lender receives from third
parties. If Borrower and/or Guarantor(s) is an individual, Borrower and Guarantor(s) have the right to instruct Lender not to share among Lender banks and affiliated financial service companies certain information (other than information about
Lender transactions and experiences with Borrower and Guarantor(s)) from Borrower and Guarantor(s) account applications or information Lender receive from third parties. Borrower and  

  
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Guarantor(s) may limit Lender from using personal information received from Lender’s affiliates within the BMO Harris Family of Companies, such as Lender banks, brokerage, insurance or
investment advisory affiliates, to market Lender products or services to Borrower and Guarantor(s). This information includes Borrower and Guarantor(s) income, Borrower and Guarantor(s) account history and Borrower and Guarantor(s) credit score. To
inform Lender that Borrower and/or Guarantor(s) do not want Lender to share certain information about Borrower and Guarantor(s) or to limit marketing offers, please contact Lender at 1-888-654-0063, or visit any BMO Harris Bank location. Borrower
and Guarantor(s) choices will apply to everyone at the same address in Lender’s records. The BMO Harris Family of Companies means BMO Harris Bank and all other companies affiliated with the Lender by common ownership or control. 

SECTION 7. NEGATIVE COVENANTS. 
 So long
as all or any portion of the Commitments remains outstanding or any Obligations hereunder remain outstanding, Borrower agrees that: 

Section 7.1 Borrowings and Guaranties. Borrower shall not, nor shall it permit any Subsidiary to, issue, incur, assume, create or
have outstanding any Indebtedness for Borrowed Money, or incur liabilities for interest rate, currency, or commodity cap, collar, swap, or similar hedging arrangements, or be or become liable as endorser, guarantor, surety or otherwise for any debt,
obligation or undertaking of any other Person, or otherwise agree to provide funds for payment of the obligations of another, or supply funds thereto or invest therein or otherwise assure a creditor of another against loss, or apply for or become
liable to the issuer of a letter of credit which supports an obligation of another, or subordinate any claim or demand it may have to the claim or demand of any other Person; provided that the foregoing shall not restrict nor operate to
prevent: 
 (a) the Obligations of Borrower and its Subsidiaries owing to Bank under the Loan Documents and other indebtedness and
obligations of such Persons owing to Bank; 
 (b) [Intentionally Deleted] 

(c) endorsement of items for deposit or collection of commercial paper received in the ordinary course of business; 

(d) subject to Bank’s prior written approval, which shall not be unreasonably withheld, assumption of leases for aircrafts and/or aircraft
airframes, engines, airframe parts and/or engine parts, aircraft engine leases by Borrower and/or any Subsidiary in the ordinary course of business; 

(e) subject to Bank’s prior written approval, which shall not be unreasonably withheld, Borrower or any Subsidiary of Borrower entering
into consignment agreements with third parties which involve possession of assets of third parties, which may or may not be covered by Borrower’s or a Subsidiary’s insurance, as applicable; 

  
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 (f) Indebtedness and/or other liabilities of Borrower or any Subsidiary for an automobile to be
used by Joseph Kuhn that does not exceed $60,000 in the aggregate in any given calendar year; and 
 (g) Indebtedness from time to time owing
by any Subsidiary to Borrower in the ordinary course of business to finance working capital needs. 
 Section 7.2 Liens.
Borrower shall not, nor shall it permit any Subsidiary to, create, incur or permit to exist any Lien of any kind on any Property owned by any such Person; provided that the foregoing shall not apply to nor operate to prevent: 

(a) Liens arising by statute in connection with worker’s compensation, unemployment insurance, old age benefits, social security
obligations, taxes, assessments, statutory obligations or other similar charges (other than Liens arising under ERISA), good faith cash deposits in connection with tenders, contracts or leases to which Borrower or any Subsidiary is a party or other
cash deposits required to be made in the ordinary course of business; provided in each case that the obligation is not for borrowed money and that the obligation secured is not overdue or, if overdue, is being contested in good faith by
appropriate proceedings which prevent enforcement of the matter under contest and adequate reserves have been established therefor; 
 (b)
mechanics’, workmen’s, materialmen’s, landlords’, carriers’ or other similar Liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested in good faith by
appropriate proceedings which prevent enforcement of the matter under contest; 
 (c) judgment liens and judicial attachment liens not
constituting an Event of Default under Section 8.1(g) and the pledge of assets for the purpose of securing an appeal, stay or discharge in the course of any legal proceeding; 

(d) Liens on equipment of Borrower or any Subsidiary created solely for the purpose of securing indebtedness permitted by
Section 7.1(b), representing or incurred to finance the purchase price of such Property; provided that no such Lien shall extend to or cover other Property of Borrower or such Subsidiary other than the respective Property so
acquired, and the principal amount of indebtedness secured by any such Lien shall at no time exceed the purchase price of such Property, as reduced by repayments of principal thereon; 

(e) any interest or title of a lessor under any operating lease or lease described under Section 2.1; 

(f) easements, rights of way, restrictions, and other similar encumbrances against real property incurred in the ordinary course of business
which, in the aggregate, are not substantial in amount and which do not materially detract from the value of the Property subject thereto or materially interfere with the ordinary conduct of the business of Borrower or any Subsidiary; and 

(g) Liens granted in favor of Bank pursuant to the Collateral Documents. 

  
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 Section 7.3 Investments, Acquisitions, Loans and Advances. Borrower shall not, nor
shall it permit any Subsidiary to, directly or indirectly, make, retain or have outstanding any investments (whether through purchase of stock or obligations or otherwise) in, or loans or advances to (other than for travel advances and other similar
cash advances made to employees in the ordinary course of business), any other Person, or acquire all or any substantial part of the assets or business of any other Person or division thereof other than the assets or business of a Subsidiary of
Borrower subject to the Bank’s prior written approval, which shall not be unreasonably withheld; provided that the foregoing shall not apply to nor operate to prevent: 

(a) investments in direct obligations of the United States of America or of any agency or instrumentality thereof whose obligations constitute
full faith and credit obligations of the United States of America, provided that any such obligations shall mature within one year of the date of issuance thereof; 

(b) investments in commercial paper rated at least P-1 by Moody’s and at least A-1 by S&P maturing within one year of the date of
issuance thereof; 
 (c) investments in certificates of deposit issued by Bank or by any United States commercial bank having capital and
surplus of not less than $100,000,000 which have a maturity of one year or less; 
 (d) investments in repurchase obligations with a term of
not more than 7 days for underlying securities of the types described in subsection (a) above entered into with any bank meeting the qualifications specified in subsection (c) above, provided all such agreements require physical delivery
of the securities securing such repurchase agreement, except those delivered through the Federal Reserve Book Entry System; 
 (e)
investments in money market funds that invest solely, and which are restricted by their respective charters to invest solely, in investments of the type described in the immediately preceding subsections (a), (b), (c), and
(d) above; 
 (f) Borrower’s investment existing on the date of this Agreement in its Subsidiaries or Borrower’s
investments from time to time in its Subsidiaries, and investments made from time to time by a Subsidiary in one or more of its Subsidiaries; 

(g) intercompany advances made from time to time from Borrower to any one or more Subsidiaries in the ordinary course of business to finance
working capital needs; 
 (h) subject to the Bank’s prior written approval, which shall not be unreasonably withheld, assumption of
leases for aircrafts and/or aircraft airframes, engines, airframe parts and/or engine parts, aircraft engine leases in the ordinary course of business; 

(i) subject to the Bank’s prior written approval, which shall not be unreasonably withheld, entering into consignment agreements with
third parties which involve possession of assets of third parties, which may or may not be covered by Borrower’s or a Subsidiary’s insurance, as applicable; and 

  
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 (j) other investments, loans, and advances in addition to those otherwise permitted by this
Section in an amount not to exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate at any one time outstanding. 
 In determining the amount of
investments, acquisitions, loans, and advances permitted under this Section, investments and acquisitions shall always be taken at the original cost thereof (regardless of any subsequent appreciation or depreciation therein), and loans and advances
shall be taken at the principal amount thereof then remaining unpaid. 
 Section 7.4 Mergers, Consolidations and Sales. Borrower
shall not, nor shall it permit any Subsidiary to, be a party to any merger or consolidation, or sell, transfer, lease or otherwise dispose of all or any part of its Property, including any disposition of Property as part of a sale and leaseback
transaction, or in any event sell or discount (with or without recourse) any of its notes or accounts receivable; provided that this Section shall not apply to nor operate to prevent: 

(a) the sale or lease of inventory in the ordinary course of business; 

(b) the sale, transfer, lease or other disposition of Property of Borrower and its Subsidiaries to one another in the ordinary course of its
business; 
 (c) the merger of any Subsidiary with and into Borrower or any other Subsidiary; provided that, in the case of any merger
involving Borrower, Borrower is the corporation surviving the merger; 
 (d) the sale, transfer or other disposition of any tangible personal
property that, in the reasonable business judgment of Borrower or its Subsidiary, has become obsolete or worn out, and which is disposed of in the ordinary course of business; and 

(e) the sale, transfer, lease or other disposition of Property of Borrower or any Subsidiary (including any disposition of Property as part of
a sale and leaseback transaction), but not including the sale or lease of Inventory in the ordinary course of Borrower’s business, aggregating for Borrower and its Subsidiaries not more than One Hundred Thousand Dollars ($100,000.00) during any
fiscal year of Borrower. 
 Section 7.5 Maintenance of Subsidiaries Borrower shall not assign, sell or transfer, nor shall it
permit any Subsidiary to issue, assign, sell or transfer, any shares of capital stock or other equity interests of a Subsidiary; provided that the foregoing shall not operate to prevent (a) Liens on the capital stock or other equity
interests of Subsidiaries granted to Bank pursuant to the Collateral Documents, (b) the issuance, sale, and transfer to any person of any shares of capital stock of a Subsidiary solely for the purpose of qualifying, and to the extent legally
necessary to qualify, such person as a director of such Subsidiary, (c) Borrower from assigning, selling or transferring, or any Subsidiary from issuing, assigning, selling or transferring 49% or less of the outstanding shares of capital stock
or other equity interests of a Subsidiary conditioned upon prior written approval from the Bank, which approval shall not be unreasonably withheld, and (d) any transaction permitted by Section 7.4(c) above. 

Section 7.6 [Intentionally Deleted] 

  
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 Section 7.7 Burdensome Contracts With Affiliates. Borrower shall not, nor shall it
permit any Subsidiary to, enter into any contract, agreement or business arrangement with any of its Affiliates (other than with Wholly-owned Subsidiaries) on terms and conditions which are less favorable to Borrower or such Subsidiary than would be
usual and customary in similar contracts, agreements or business arrangements between Persons not affiliated with each other. 

Section 7.8 No Changes in Fiscal Year. The fiscal year of Borrower and its Subsidiaries ends on December 31 of each year; and
Borrower shall not, nor shall it permit any Subsidiary to, change its fiscal year from its present basis. 
 Section 7.9 Change in
the Nature of Business. Borrower shall not, nor shall it permit any Subsidiary to, engage in any business or activity if as a result the general nature of the business of Borrower or any Subsidiary would be changed in any material respect from
the general nature of the business engaged in by it as of the Closing Date; provided, however, that this Section 7.9 shall not prevent Borrower or any Subsidiary, subject to the Bank’s prior written approval, from assuming leases for
aircrafts and/or aircraft airframes, engines, airframe parts and/or engine parts if such assumption is for the purpose of helping the Borrower or its Subsidiary to gain access to aircraft engines or engine parts for its general business, or from
forming one or new Subsidiaries or entering into joint ventures to facilitate the assumption of such leases, or any other business or activity identified in Section 2.1 hereof. 

Section 7.10 No Restrictions. Except pursuant to this Agreement and the other Loan Documents, Borrower shall not, nor shall it
permit any Subsidiary to, directly or indirectly create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of Borrower or any Subsidiary to: (a) pay dividends or make
any other distribution on any Subsidiary’s capital stock or other equity interests owned by Borrower or any other Subsidiary, (b) pay any indebtedness owed to Borrower or any other Subsidiary, (c) make loans or advances to Borrower or
any other Subsidiary, (d) transfer any of its Property to Borrower or any other Subsidiary, or (e) guarantee the Obligations and/or grant Liens on its assets to Bank as required by the Loan Documents. 

Section 7.11 Subordinated Debt. Borrower shall not, nor shall it permit any Subsidiary to, (a) amend or modify any of the
terms or conditions relating to Subordinated Debt, (b) make any voluntary prepayment of Subordinated Debt or effect any voluntary redemption thereof, or (c) make any payment on account of Subordinated Debt which is prohibited under the
terms of any instrument or agreement subordinating the same to the Obligations. Notwithstanding the foregoing, Borrower may agree to a decrease in the interest rate applicable thereto or to a deferral of repayment of any of the principal of or
interest on the Subordinated Debt beyond the current due dates therefor. 
 Section 7.12 Financial Covenants. 

(a) Debt Service Coverage Ratio. As of the last day of each fiscal quarter of Borrower, commencing September 30, 2016 and on last
day of each subsequent fiscal quarter of Borrower, Borrower and its Subsidiaries shall have a Debt Service Coverage Ratio for the four (4) fiscal quarters then ended, of not less than 1.75:1.00. 

  
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 (b) Maximum Leverage Ratio. As of the last day of each fiscal quarter of Borrower,
commencing September 30, 2016 and on last day of each subsequent fiscal quarter of Borrower, Borrower shall not permit the Maximum Leverage Ratio to exceed 2.50:1.00. 

For purposes of 7.12(a) and (b), the first four (4) quarters then ended shall include the financial performance of
Contrail Aviation, Inc., until such time as Borrower has operated for a full four (4) quarters. 
 (c) [Intentionally Deleted]

 (d) Operating Leases. Other than the lease(s) and other arrangements disclosed in Schedule 7.12(d), and subject to
Section 7.1(d), Borrower shall not, nor shall it permit any Subsidiary to, acquire the use or possession of any Property under a lease or similar arrangement, whether or not Borrower or any Subsidiary has the express or implied right to acquire
title to or purchase such Property, at any time if, after giving effect thereto, the aggregate amount of fixed rentals and other consideration payable by Borrower and its Subsidiaries under all such leases and similar arrangements would exceed Ten
Thousand Dollars ($10,000.00) during any fiscal year of Borrower. Capital Leases shall not be included in computing compliance with this Section to the extent Borrower’s and its Subsidiaries’ liability in respect of the same is permitted
by Section 7.1(b). 
 Section 7.13 ASA Certification. The Borrower shall at all times remain in material compliance
with all of the terms and conditions of its certification from the Aviation Suppliers Association. 
 Section 7.14 Net Orderly
Liquidation Value of Eligible Inventory. The net orderly liquidation value of the Borrower’s Eligible Inventory as shown on the most recent inventory appraisal provided to the Bank shall not be less than 87.5% of such Eligible
Inventory’s aggregate book value. 
 SECTION 8. EVENTS OF DEFAULT AND REMEDIES. 

Section 8.1 Events of Default. 

Any one or more of the following shall constitute an “Event of Default” hereunder: 

(a) default in the payment when due of all or any part of any Obligation payable by Borrower hereunder or under any other Loan Document that is
not a Foreign Security Agreement (whether at the stated maturity thereof or at any other time provided for in this Agreement), or default shall occur in the payment when due of any other indebtedness or obligation, other than indebtedness or an
obligation arising under a Foreign Security Agreement, (whether direct, contingent or otherwise) of Borrower owing to Bank; 

  
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 (b) default in the observance or performance of any covenant set forth in Sections 6.1,
6.4, 6.5, 6.6, 6.11, or 7 or of any provision in any Loan Document that is not a Foreign Security Agreement dealing with the use, disposition or remittance of the proceeds of Collateral or requiring the maintenance
of insurance thereon; 
 (c) default in the observance or performance of any other provision hereof or of any other Loan Document that is not
a Foreign Security Agreement; 
 (d) any representation or warranty made herein or in any other Loan Document that is not a Foreign Security
Agreement or in any certificate furnished to Bank pursuant hereto or thereto or in connection with any transaction contemplated hereby or thereby proves untrue in any respect (or in any material respect if such representation, warranty,
certification or statement is not by its terms already qualified as to materiality) as of the date of the issuance or making or deemed making thereof; 

(e) any event occurs or condition exists (other than those described in subsections (a) through (d) above) which is
specified as an event of default under any of the other Loan Documents (other than any of the Foreign Security Agreements), or any of the Loan Documents (other than a Foreign Security Agreement) shall for any reason not be or shall cease to be in
full force and effect or is declared to be null and void, or any of the Collateral Documents relating to Collateral located within the United States shall for any reason fail to create a valid and perfected first priority Lien in favor of Bank, or
in the case of the Kuhn Mortgage, a valid and perfected junior Lien in favor of Bank, in any Collateral purported to be covered thereby except as expressly permitted by the terms thereof, or any Subsidiary takes any action for the purpose of
terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder; 
 (f) default shall occur
under any Indebtedness for Borrowed Money issued, assumed or guaranteed by Borrower or any Subsidiary aggregating in excess of One Hundred Thousand Dollars ($100,000.00), or under any indenture, agreement or other instrument under which the same may
be issued, and such default shall continue for a period of time sufficient to permit the acceleration of the maturity of any such Indebtedness for Borrowed Money (whether or not such maturity is in fact accelerated), or any such Indebtedness for
Borrowed Money shall not be paid when due (whether by demand, lapse of time, acceleration or otherwise), provided that the default has not occurred under a Foreign Security Agreement; 

(g) any judgment or judgments, writ or writs or warrant or warrants of attachment, or any similar process or processes, shall be entered or
filed against Borrower or any Subsidiary, or against any of its Property, in an aggregate amount in excess of One Hundred Thousand Dollars ($100,000.00) (except to the extent fully covered by insurance as to which the insurer has been notified of
such judgment and has not denied coverage), and which remains undischarged, unvacated, unbonded or unstayed for a period of thirty (30) days, provided that the judgment(s), writ(s), warrant(s) of attachment or process(es) do not arise out of
and are not related to any Foreign Security Agreement; 
 (h) Borrower or any Subsidiary, or any member of its Controlled Group, shall fail
to pay when due an amount or amounts aggregating in excess of One Hundred Thousand Dollars ($100,000.00) which it shall have become liable to pay to the PBGC or to a Plan under Title IV 

  
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of ERISA; or notice of intent to terminate a Plan or Plans having aggregate Unfunded Vested Liabilities in excess of One Hundred Thousand Dollars ($100,000.00) (collectively, a “Material
Plan”) shall be filed under Title IV of ERISA by Borrower or any Subsidiary, or any other member of its Controlled Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of
ERISA to terminate or to cause a trustee to be appointed to administer any Material Plan or a proceeding shall be instituted by a fiduciary of any Material Plan against Borrower or any Subsidiary, or any member of its Controlled Group, to enforce
Section 515 or 4219(c)(5) of ERISA and such proceeding shall not have been dismissed within thirty (30) days thereafter; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any
Material Plan must be terminated; 
 (i) any Change of Control shall occur; 

(j) Borrower or any Subsidiary shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy
Code, as amended, (ii) admit in writing its inability to pay its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the appointment of a
receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy Code,
as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors or fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it, (vi) take any corporate action in furtherance of any matter described in parts (i) through (v) above, or
(vii) fail to contest in good faith any appointment or proceeding described in Section 8.1(k); 
 (k) a custodian, receiver,
trustee, examiner, liquidator or similar official shall be appointed for Borrower or any Subsidiary, or any substantial part of any of its Property, or a proceeding described in Section 8.1(j)(v) shall be instituted against Borrower or
any Subsidiary, and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of sixty (60) days; 

(l) Joseph G. Kuhn no longer being employed by or otherwise serving as President of Borrower for whatever reason. 

Section 8.2 Non Bankruptcy Defaults. When any Event of Default (other than those described in Section 8.1(j) or
(k) with respect to Borrower) has occurred and is continuing, Bank may, by written notice to Borrower: (a) terminate the remaining Commitment and all other obligations of Bank hereunder on the date stated in such notice (which may
be the date thereof); and (b) declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all outstanding Loans, including both principal and interest thereon, shall be and become
immediately due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind; provided, however, that (x) should Borrower fail to pay any monies when due under
the Loan Documents, such failure shall not constitute an “Event of Default” under the Loan 

  
 S-41 

 
Documents or permit Lender to exercise remedies under any Loan Document unless Borrower has not fully cured such failure by the fifth (5th) day after delivery of written notice by Lender to
Borrower and (y) should an event that relates to a non-monetary default occur, such event shall not constitute an Event of Default or permit Lender to exercise remedies under any Loan Document unless the Borrower has not fully cured such
default by the fifteenth (15th) day after delivery of written notice by Lender to Borrower. 

Section 8.3 Bankruptcy Defaults. When any Event of Default described in Section 8.1(j) or (k) with respect
to Borrower has occurred and is continuing, then all outstanding Loans together with all other amounts payable under the Loan Documents shall immediately become due and payable without presentment, demand, protest or notice of any kind, the
obligation of Bank to extend further credit pursuant to any of the terms hereof shall immediately. 
 SECTION 9. MISCELLANEOUS. 

Section 9.1 Non-Enforcement of Foreign Security Agreement. Notwithstanding anything in any Foreign Security Agreement, this Credit
Agreement or any other Loan Document, the Bank shall not enforce any term or condition of any Foreign Security Agreement, including any of its rights or remedies thereunder, unless and until an Event of Default has occurred under this Credit
Agreement, and the Bank agrees that a default, an event of default, or non-performance of the Borrower under any Foreign Security Agreement shall not constitute an Event of Default under this Credit Agreement or any other Loan Document. 

Section 9.2 No Waiver, Cumulative Remedies. No delay or failure on the part of Bank in the exercise of any power or right under
any Loan Document shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The
rights and remedies hereunder of Bank are cumulative to, and not exclusive of, any rights or remedies which Bank would otherwise have. 

Section 9.3 Non-Business Days. If any payment hereunder becomes due and payable on a day which is not a Business Day, the due date
of such payment shall be extended to the next succeeding Business Day on which date such payment shall be due and payable. In the case of any payment of principal falling due on a day which is not a Business Day, interest on such principal amount
shall continue to accrue during such extension at the rate per annum then in effect, which accrued amount shall be due and payable on the next scheduled date for the payment of interest. 

Section 9.4 Survival of Representations. All representations and warranties made herein or in any other Loan Document or in
certificates given pursuant hereto or thereto shall survive the execution and delivery of this Agreement and the other Loan Documents, and shall continue in full force and effect with respect to the date as of which they were made as long as any
credit is in use or available hereunder. 

  
 S-42 

 Section 9.5 Survival of Indemnity and Certain Other Provisions. All indemnity
provisions and other provisions relative to reimbursement to Bank of amounts sufficient to protect the yield of Bank with respect to the Loans, including, but not limited to, Sections 3.3, 3.6, and 9.10, shall survive the
payment and satisfaction of all Obligations and the termination of this Agreement and the other Loan Documents, and shall remain in force beyond the expiration of any applicable statute of limitations and payment or satisfaction in full of any
single claim thereunder. All such indemnity and other provisions shall be binding upon the successors and assigns of Borrower and shall inure to the benefit of each applicable Indemnitee and its successors and assigns. 

Section 9.6 Notices. Except as otherwise specified herein, all notices hereunder and under the other Loan Documents shall be in
writing (including notice by telecopy) and shall be given to the relevant party at its address set forth below, or such other address as such party may hereafter specify by notice to the other given by courier, by United States certified or
registered mail, by telecommunication device capable of creating a written record of such notice and its receipt. Notices under the Loan Documents shall be addressed: 
  

			
	 to Borrower:
  

Contrail Aviation Support, LLC
 435 Investment Court

Verona, WI 53593-8788
 Attention:     Joseph
G. Kuhn
 Telephone:   608-848-8100
	  	 to Bank:
  

BMO Harris Bank N.A.
 One West Main Street

Madison, Wisconsin 53703
 Attention:
    Thomas Olson Jr.
 Telephone: : 608-283-5708

 Each such notice, request or other communication shall be effective (i) if given by telecopier, when such telecopy is
transmitted to the telecopier number specified in this Section and a confirmation of such telecopy has been received by the sender, (ii) if given by mail, 5 days after such communication is deposited in the mail, certified or registered with
return receipt requested, addressed as aforesaid or (iii) if given by any other means, when delivered at the addresses specified in this Section; provided that any notice given pursuant to Section 2 shall be effective only
upon receipt. 
 Section 9.7 Counterparts. This Agreement may be executed in any number of counterparts, and by the different
parties hereto on separate counterpart signature pages, each of which shall constitute an original, and all such counterparts taken together shall be deemed to constitute one and the same instrument. 

Section 9.8 Successors and Assigns. This Agreement shall be binding upon Borrower and its successors and assigns, and shall inure
to the benefit of Bank and its successors and assigns, including any subsequent holder of any of the Obligations. Borrower may not assign any of its rights or obligations under any Loan Document without the written consent of Bank. 

Section 9.9 Amendments, etc. No amendment, modification, termination or waiver of any provision of this Agreement or of any other
Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by Borrower and Bank. No notice to or demand on Borrower in any case shall entitle Borrower to any
other or further notice or demand in similar or other circumstances. 

  
 S-43 

 Section 9.10 Headings. Article and Section headings used in this Agreement are for
reference only and shall not affect the construction of this Agreement. 
 Section 9.11 Costs and Expenses; Indemnification.

 (a) Borrower agrees to pay all costs and expenses of Bank in connection with the preparation, negotiation, execution, delivery, and
administration of the Loan Documents, including the reasonable fees and disbursements of counsel to Bank, in connection with the preparation and execution of the Loan Documents and in connection with the transactions contemplated hereby or thereby,
and any amendment, waiver or consent related thereto, whether or not the transactions contemplated herein are consummated, together with any fees and charges suffered or incurred by Bank in connection with periodic environmental audits, fixed asset
appraisals, title insurance policies, collateral filing fees and lien searches. Borrower agrees to pay to Bank all costs and expenses incurred or paid by Bank, including reasonable attorneys’ fees and disbursements and court costs, in
connection with any Default or Event of Default hereunder or in connection with the enforcement of any of the Loan Documents (including all such costs and expenses incurred in connection with any proceeding under the United States Bankruptcy Code
involving Borrower or any Subsidiary as a debtor thereunder). Borrower further agrees to indemnify Bank, and any security trustee therefor, their respective Affiliates, and each of their respective directors, officers, employees, agents, advisors,
and consultants (each such Person being called an “Bank Indemnitee”) against all losses, claims, damages, penalties, judgments, liabilities and expenses (including all reasonable fees and disbursements of counsel for any such Bank
Indemnitee and all reasonable expenses of litigation or preparation therefor, whether or not the Bank Indemnitee is a party thereto, or any settlement arrangement arising from or relating to any such litigation) which any of them may pay or incur
arising out of or relating to any Loan Document or any of the transactions contemplated thereby or the direct or indirect application or proposed application of the proceeds of any Loan, other than those which arise from the gross negligence or
willful misconduct of the party claiming indemnification or arising from Bank taking any action which constitutes a breach of Section 9.1 hereof. Borrower, upon demand by Bank at any time, shall reimburse Bank for any legal or other expenses
(including all reasonable fees and disbursements of counsel for any such Bank Indemnitee) incurred in connection with investigating or defending against any of the foregoing (including any settlement costs relating to the foregoing) except if the
same is directly due to the gross negligence or willful misconduct of the party to be indemnified. To the extent permitted by applicable law, Borrower shall not assert or cause any Subsidiary to assert, and hereby waives, any claim against any Bank
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or the other Loan Documents or any
agreement or instrument contemplated hereby or thereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof. 

(b) Borrower unconditionally agrees to forever indemnify, defend and hold harmless, and covenants not to sue for any claim for contribution
against, each Bank Indemnitee for any damages, costs, loss or expense, including, response, remedial or removal costs and all fees and 

  
 S-44 

 
disbursements of counsel for any such Bank Indemnitee, arising out of any of the following: (i) any presence, release, threatened release or disposal of any hazardous or toxic substance or
petroleum by Borrower or any Subsidiary or otherwise occurring on or with respect to its Property (whether owned or leased), (ii) the operation or violation of any Environmental Law, whether federal, state, or local, and any regulations
promulgated thereunder, by Borrower or any Subsidiary or otherwise occurring on or with respect to its Property (whether owned or leased), (iii) any claim for personal injury or property damage in connection with Borrower or any Subsidiary or
otherwise occurring on or with respect to its Property (whether owned or leased), and (iv) the inaccuracy or breach of any environmental representation, warranty or covenant by Borrower or any Subsidiary made herein or in any other Loan
Document evidencing or securing any Obligations or setting forth terms and conditions applicable thereto or otherwise relating thereto, except for damages arising from the willful misconduct or gross negligence of the relevant Bank Indemnitee. 

Notwithstanding anything else in this Credit Agreement, Bank agrees to indemnify Borrower, and its Affiliates, and each of their respective
directors, officers, employees, agents, advisors, and consultants (each such Person being called a “Borrower Indemnitee”) against all losses, claims, damages, penalties, judgments, liabilities and expenses (including
all reasonable fees and disbursements of counsel for any such Borrower Indemnitee and all reasonable expenses of litigation or preparation therefor, whether or not the Borrower Indemnitee is a party thereto, or any settlement arrangement arising
from or relating to any such litigation) which any of them may be required to pay or incur arising out of or relating to any Foreign Security Agreement or any of the transactions contemplated thereby unless an Event of Default has occurred and is
occurring under this Credit Agreement. In addition, Bank, upon demand by Borrower at any time, shall reimburse Borrower for any legal or other expenses (including all reasonable fees and disbursements of counsel for any such Borrower Indemnitee)
incurred in connection with investigating or defending against any of the foregoing (including any settlement costs relating to the foregoing). Bank shall not assert, and hereby waives, any claim against any Borrower Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, any Foreign Security Agreement or any agreement or instrument contemplated thereby or
the transactions contemplated thereby. 
 Section 9.12 Set off. In addition to any rights now or hereafter granted under the
Loan Documents or applicable law and not by way of limitation of any such rights, upon the occurrence of any Event of Default, Bank and each of its affiliates is hereby authorized by Borrower at any time or from time to time, without notice to
Borrower, or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit,
whether matured or unmatured, and in whatever currency denominated, but not including trust accounts) and any other indebtedness at any time held or owing by Bank or that affiliate, to or for the credit or the account of Borrower, whether or not
matured, against and on account of the Obligations of Borrower to Bank under the Loan Documents, including, 

  
 S-45 

 
but not limited to, all claims of any nature or description arising out of or connected with the Loan Documents, irrespective of whether or not (a) Bank shall have made any demand hereunder
or (b) the principal of or the interest on the Loans and other amounts due hereunder shall have become due and payable pursuant to Section 8 and although said obligations and liabilities, or any of them, may be contingent or
unmatured. 
 Section 9.13 Entire Agreement. The Loan Documents constitute the entire understanding of the parties thereto with
respect to the subject matter thereof and any prior agreements, whether written or oral, with respect thereto are superseded hereby. 

Section 9.14 Governing Law. This Agreement and the other Loan Documents (except as otherwise specified therein), and any claim,
controversy, dispute or cause of action (whether in contract, tort or otherwise) based upon, arising out of or relating to this Agreement or any Loan Document, and the rights and duties of the parties hereto, shall be governed by and construed and
determined in accordance with the internal laws of the State of Wisconsin. 
 Section 9.15 Severability of Provisions. Any
provision of any Loan Document that is unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the enforceability of
such provision in any other jurisdiction. All rights, remedies and powers provided in this Agreement and the other Loan Documents may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of
law, and all the provisions of this Agreement and other Loan Documents are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this
Agreement or the other Loan Documents invalid or unenforceable. 
 Section 9.16 Construction. The parties acknowledge and agree
that the Loan Documents shall not be construed more favorably in favor of any party hereto based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation of the Loan Documents. The
provisions of this Agreement relating to Subsidiaries shall only apply during such times as Borrower has one or more Subsidiaries. Nothing contained herein shall be deemed or construed to permit any act or omission which is prohibited by the terms
of any Collateral Document, the covenants and agreements contained herein being in addition to and not in substitution for the covenants and agreements contained in the Collateral Documents. 

Section 9.17 Submission to Jurisdiction; Waiver of Venue; Service of Process. 

(a) BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF WISCONSIN
SITTING IN DANE COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE WESTERN DISTRICT OF WISCONSIN, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR
FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND 

  
 S-46 

 
EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT BANK MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWER OR ITS
PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION. 
 (b) BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (a) OF THIS
SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 

(c) EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 9.5. NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

Section 9.18 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

Section 9.19 USA Patriot Act. Bank hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107 56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify, and record information that identifies Borrower, which information includes the name and address of Borrower and other
information that will allow Bank to identify Borrower in accordance with the Act. 

  
 S-47 

 Section 9.20 Time is of the Essence. Time is of the essence of this Agreement and
each of the other Loan Documents. 
 This Credit Agreement is entered into between us for the uses and purposes hereinabove set forth as of
the date first above written. 
 [Signature Pages to Follow] 

  
 S-48 

 
			
	“Borrower”
	
	CONTRAIL AVIATION SUPPORT, LLC
		
	By:	 	 /s/ Joseph G. Kuhn

	Name:	 	Joseph G. Kuhn
	Title:	 	President

 [Bank’s signature on next page] 

  
 S-49 

 
			
	“Bank”
	
	BMO HARRIS BANK N.A.
		
	By:	 	 /s/ Thomas Olson Jr.

	Name:	 	Thomas Olson Jr.
	Title:	 	Vice President

 [Bank’s signature page to Credit Agreement of Contrail Aviation Support, LLC] 

  
 S-50 

 Exhibit A 

[NEEDS REVISION] 

OPERATING LINE BORROWING BASE CERTIFICATE 

Contrail Aviation Support, Inc. 

$12,000,000 Line of Credit 
 To: BMO Harris
Bank, N.A. 
 For month ending                     
(Please send to bank within 15 days of the month-end). 
 Pursuant to the Credit Agreement between BMO Harris Bank, N.A. and the undersigned dated
            , 2016, which defines the terms used herein, the undersigned certifies that: 
  

							
	 1A.
	 	Total Accounts Receivable as of :	  	$	0.00	  
	 2A.
	 	Ineligible Accounts Receivable (attach ineligible listing)	  	$	0.00	  
	 3A.
	 	Net Eligible Accounts Receivable (Line 1A less Line 2A)	  	$	0.00	  
	 4.
	 	Eligible Inventory	  	$	0.00	  
	 5.
	 	Ineligible Inventory	  	$	0.00	  
	 6.
	 	Net Eligible Inventory (Line 4 less Line 5)	  	$	0.00	  
	 7A.
	 	Multiply Line 3A x 80%	  	$	0.00	  
	 7B.
	 	Multiply Line 3B x 75%	  	$	0.00	  
	 7C.
	 	Multiply Line 6 x 75% (Max $5MM or 70% of the Total Borrowing Base Certificate)	  	$	0.00	  
	 8.
	 	Net Collateral Value (Sum of Line 7A, 7B, & 7C)	  	$	0.00	  
	 9.
	 	Amount owed BMO Harris Bank, N.A. under the $12,000,000 line of credit	  	$	0.00	  
	 10.
	 	Availability (Line 8 less Line 9 - not greater than $12,000,000:	  	$	0.00	  

 The undersigned represents and warrants that the foregoing is true, complete and correct, and that the information reflected
in this Collateral Schedule complies with the representations and warranties set forth in the Security Agreement and in the Credit Agreement between the undersigned and BMO Harris Bank N.A. dated
            , 2016. 
 The undersigned [     is] [    
is not] in compliance under the Credit Agreement 
  

			
		 	Contrail Aviation Support, Inc.
		
		 	By:                                     
               
		
		 	Date:                    

  

			
	Please send this report to:	  	BMO Harris Bank, N. A.
		  	Tom Olson
		  	One West Main St.,
		  	 Madison, WI 53703

thomas.olson@bmo.com/608-283-5799 fax

 Please include updated Accounts Receivable and Payable aging as of the same date. 

 

									
	 	  	Ineligible Listing	  	 	 	  	 
	 A:)
	  	Over 90 days from invoice date (60-90 and 90+ columns)	  	 	0.00	  	  	From A/R schedule end of month
		  		  	  
	  
	 	  	
	 B.)
	  	Cross aging (current A/R balances from companies having 20% or more over 90 days from invoice date	  	 	0.00	  	  	Formula
		  		  	  
	  
	 	  	
	 C.)
	  	Concentration accounts-exclude the amount from any one client over 35% of total A/R-exclude only the amount over the 35% threshold	  	 	0.00	  	  	Enter Number from bottom of AR Aging if over 35%
		  		  	  
	  
	 	  	
	 D.)  
	  	U.S. Government A/R	  	 	0.00	  	  	Enter a number - Usually zero
		  		  	  
	  
	 	  	
	 E.)
	  	Foreign A/R	  	 	0.00	  	  	Enter a number - Usually zero
		  		  	  
	  
	 	  	
	 F.)
	  	Affiliated A/R (A/R from companies related to borrowing entity)	  	 	0.00	  	  	Enter a number - Usually zero
		  		  	  
	  
	 	  	
	 G.)
	  	Contra accounts (A/R with corresponding A/P balances - the amount here should be the Lessor of the A/R or A/P balance) Lessor of AR or deposit balance	  	 	0.00	  	  	Enter a number - Usually zero
		  		  	  
	  
	 	  	
	 H.)
	  	Credits over 90 days old (any negative amounts in the 60-90 and 90+ columns)	  	 	0.00	  	  	Formula
		  		  	  
	  
	 	  	
		  	Reserve	  	 	0.00	  	  	
		  	Total - put total on Line 2 of Borrowing Base Certificate	  	 	0.00	  	  	
		  		  	  
	  
	 	  	

  

							
	  
	 Crossing Aging - Companies over 20% over 90 days from Invoice Date

			
	 	        0.00	  	  		  	
	  
	  
	 	  		  	
	 	0.00	  	  	formula	  	

									
	 Contra Accounts
	  				  			
			
	 Accounts Payable Contra Accounts
	  				  			
		  	 	0.00	  	  			
	 Accounts Receivable Deposits - Lesser of Deposit or AR outstanding
	  				  			
		  	 	0.00	  	  			
	 Credits over 90 Days Old
	  				  			
		  				  	 	0.00	  
		  				  	  
	  
	 
		  				  	 	    0.00	  

 Contrail Aviation Support Receivables 

AS OF 07/31/2015 
  

																					
	 	  	 Current
	  	1-30	  	31 - 60	  	61-90	  	> 90	  	TOTAL	  	Total Past Due	  	Past Due as a
% of Total	  	 	 
		  		  		  		  		  		  		  		  		  			
		  		  		  		  		  		  		  		  		  			
		  		  		  		  		  		  		  		  		  			
		  		  		  		  		  		  		  		  		  			
		  		  		  		  		  		  		  		  		  			
		  	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  			
		  		  		  		  		  		  		  		  		  	 	0.00	  
		  	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  			

  

									
	 35% Threshold: Exclude amount over this amount for any client that exceeds this
	  				  	$	     	  
	 Clients Over this Amount:
	  	 	Client Total	  	  			
	 Client name
	  				  			
	 Amount Exceeding 35% threshold
	  	$	0.00	  	  			
	 Clients with > 20% > 90 days past due
	  	$	0.00	  	  			

 Contrail Aviation PAYABLES 

As of 07/31/2015 
  

																							
	 Vendor
	  	Current	  	1 – 30	 	  	31-60	 	  	61-90	 	  	> 90	 	  	TOTAL	 
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
		  		  				  				  				  				  	 	0.00	  
	 TOTAL
	  		  	 	0.00	  	  	 	0.00	  	  	 	0.00	  	  	 	0.00	  	  	 	0.00	  
		  		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

 Schedule I 

to Compliance Certificate 

CONTRAIL AVIATION SUPPORT, LLC 

Compliance Calculations 

for Credit Agreement dated as of July 18, 2016 

Calculations as of             ,         

  
  

 
  

					
	 A. Debt Service Coverage Ratio (Section 7.12(a))
	  			
	 A1. EBITDA – TTM

A2. LESS Distributions/Dividends – (y)
	  	$	            	  
		  	  
	  
	 
	 A3. Total
	  			
	 A4. Debt Service Coverage Ratio – TTM (Interest Expense TTM)
	  			
	 A5. Ratio of Line A3 to A4
	  	 	        :1.0	  
	 A6. Line A5 ratio must not exceed
	  	 	        1.75:1.0	  
	 A7. Borrower is in compliance (circle yes or no)
	  	 	yes/no	  
	 B. Maximum Leverage Ration (Section 7.12(b))
	  			
	 1. Total Liabilities
	  	$	            	  
		  	  
	  
	 
	 2. Tangible Net Worth
	  	$	            	  
		  	  
	  
	 
	 3. Ratio of Line B1 to B2
	  	 	        :1.0	  
	 4. Line B3 ratio must not exceed
	  	 	2.50:1.00	  
	 Borrower is in compliance (circle yes or no)
	  	 	yes/no	  

 Schedule 5.2 

Subsidiaries 
  

							
	 Name
	  	Jurisdiction
Of Organization	  	Percentage
Ownership	  	Owner
	N/A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]