Document:

EX-10.6

 Exhibit 10.6 

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

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

CFM56-7 spare engine bearing Engine Serial Number *
                 
  

Serviceability Tag:
 Latest EASA Form 1 and FAA Form 8130-3 release certificate or alternatively one EASA Form 1 with FAA dual release or FAA form 8130-3 with EASA dual release.

 
	  	 2A+B. Engine Flight Hours (2A) and Engine Flight Cycles (2B) /Since Last Overhaul (clause
2.3.1(ii); Annex 1, Definitions)
  
 Engine Flight Hours since new:

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

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

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

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

 
	  	 4. Conditions Precedent Time Period (clause 2.3.2)
  

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

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

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

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

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

  

			
	 1
  

	*

  

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

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

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

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

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

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

(2) invoice@ *
                                         
           .
  
	  	 10. Default Rate (clause 3.5; annex 1, definition)

*                    
                                         
                   

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

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

 
 Beneficiary:  Contrail Aviation Support, LLC

                      435 Investment Court

                      Verona, WI 53593

 

	 13. Engine Documentation (clause 4.2.1(i))
  

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

•  serviceable removal tag (as applicable)

•  LLP status

•  latest FAA & EASA AD status

•  latest SB status

•  last operator NIS

•  result of last Maximum Power Assurance run (MPA)

•  last test cell run report

•  latest BSI report

•  BSI DVD

•  last 3 months Cruise & Take-off ECM data

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

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

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

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

 
 b. engine configuration during preceding month; and

 
 c. maintenance performed during preceding month; and

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

  
 2 

 

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

			
	 •  missing parts list

•  shipping stand details

•  ship loose & bypack parts (as applicable)

•  preservation data (tag, work cards)

•  engine removal/installation history

•  carry-forward sheet

•  oil consumption report

•  used oil type

•  last SV report (as applicable)

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

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

 
	  	 16. Certain Lessee Obligations Concerning Indemnitees (clause 4.4.6)

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

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

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

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

 
 USD *
                  

	 19. Reinsurance (clause 8.1)
  

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

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

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

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

 

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

 
 All inspections, tasks and reports specified in Appendix C.

  

			
	 3
  

	*

  

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

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

 

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	  	 24. Transportation – supplemental requirements (clause 11.5)

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

  

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

			
	 25. Additional Amounts – Term Extension (clause 11.6.2)

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

N/A.

	 27. Notices (clause 17.5)
  

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

 
 Address:  Contrail Aviation Support,
LLC
       435 Investment Court Verona

      WI 53593

      USA
  

Attn:    President

Fax:   +1 608 848 8101
  

Lessee
  

Address: *
                                         

  

             *       
                                  

 
               *                                    
     
  

Attn:    *       
                                  

 
 Fax:   *                                    
     
	  	 28. Contracting by Fax/Electronic Writing (clause 17.6)

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

  

			
	 5
  

	*

  

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

			
	 29. Governing Law (clause 17.7)
  

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

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

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

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

Evansville, Indiana, United States of America *Amsterdam,

*The Netherlands

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

 

US$*                 

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

 
 as per Appendix D

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

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

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

 
 USA

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

 

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*
                                   
                
	  	 38. Threshold Amount (annex 1, definition)
  

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

  
  

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

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

*            
                      
	  	 40. Deductibles (annex 4, clause 8)

 
 Hull All Insurance—US$*                 

Spares
Insurance—US$*              

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

 

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

	 (b)   any such sub-lease
agreement:

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

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

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

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

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

 Part III – Other Modification to Master Agreement 

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

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

  

			
	 7
  

	*

  

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

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

  

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

  

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

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

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

	3.	 A new clause 2.4.3 is added as follows: 

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

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

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

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

  

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

 

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

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

and 
  

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

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

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

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

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

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

 

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

 “to an affiliate of Lessor or” 

 

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

  

			
	 9
  

	*

  

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

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

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

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

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

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

 

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

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

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

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

 

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

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

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

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

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

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

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

  

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

  

			
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	BY:	 	*                         
                                         
                    
	NAME:	 	*                         
                                         
                    
	TITLE:	 	*                         
                                         
                    
	DATE:	 	*                         
                                         
                    

  
  

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

 Part IV – Appendices 

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

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

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

  

			
	 12
  

	*

  

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

 Appendix A – Acceptance Certificate 

Contrail Aviation Support, LLC 
 435 Investment Court Verona 

Wl 53593 
 USA 

 

	Re:	 Acceptance of Engine Package 

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

 

	(i)	 on 11.01.2018 at 1200 GMT at
*                                   
                                         
                                         
                               
                                   
     , Lessee accepted delivery of the Engine, as described in Part I, point 1 of the Engine Lease Agreement and the Engine Documentation, as described in Part I, point 13 of the Engine Lease Agreement;

  

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

  

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

  

			
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	By:	 	*                               
                                      
	Date:	 	*                               
                                      

  

  

							
		  		 	
	*

	  	*	 	
        

 

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

 Appendix B – Monthly Engine Utilization And Status Report 

MONTHLY LEASE ENGINE UTILIZATION AND STATUS REPORT 

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

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

 MONTH and YEAR OF REPORTED UTILIZATION:
                                     

 

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

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

 Appendix C - Redelivery Requirements 

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

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

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

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

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

  

			
	 15
  

	*

  

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

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

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

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

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

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

i.    capping and plugging all openings of the Engine; 

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

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

  
  

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

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

  

			
	 17
  

	*

  

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

 SCHEDULE 1 TO APPENDIX C 

ENGINE REDELIVERY TASK AND DOCUMENTS 
  

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

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

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

  

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

  

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

  

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

  

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

 

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

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

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

  

	2.	 End of Lease Documentation 

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

 

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

 

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

  

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

  

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

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

  

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

  

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

  

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

  

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

  

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

  

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

 

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

  

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

 

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

  

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

  

			
	 19
  

	*

  

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

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

  

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

 

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

  

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

 

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

  

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

  

	2.21	 UNSCHEDULED MAINTENANCE EVENTS and INSPECTION REPORTS. 

 

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

  

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

  

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

 

									
	 *
	 		 		 		 	
		 	CFM56-7B20 ESN	 	*	 		 	

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

  
  

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

 SCHEDULE 2 TO APPENDIX C 
  

									
	 END
 OF

LEASE
 REQUIREMENTS

TASK #
	 	 TASK DESCRIPTION
	 	 BOEING MPD &

AMM REFERENCE
	 	 REMARKS
	 	 INSPECTOR

Date/Signature/
Stamp

	1	 	ENGINE DOCUMENTATION CHECK
					
	1.1	 	CHECK MAINTENANCE LOG BOOKS AND PROVIDE PAPERWORK FOR ANY ENGINE RELATED MAINTENANCE REPORTS, PILOT REPORTS AND DEFERRED DEFECTS REPORTED.	 	N/A	 	 OPERATOR
 TASK
	 	
					
		 	NOTE: Not applicable in Shop.	 		 		 	
					
	1.2	 	CHECK AD NOTE STATUS. CHECK FOR REQUIRED FAA-EASA AD AND SB OEM CAT 1, 2 INCORPORATION.	 	N/A	 		 	
					
		 	 NOTE: When Engine in *         Shop -
SB
 check per *         lease group advice.
	 		 		 	
					
	1.3	 	CHECK AIRCRAFT DATA FOR ATA CHAPTER 70-80 CLASS 3 FAULTS.	 	N/A	 	 OPERATOR
 TASK
	 	
					
		 	NOTE: Not applicable in Shop.	 		 		 	
		
	2	 	ENGINE GENERAL INSPECTION
					
	2.1	 	CLEAN THE ENGINE GAS-PATH WITH PURE WATER.	 	
AMM 72-00-00-100-

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

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

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

811
 (ON WING)

ESM 72-00-00-500-001

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

  

			
	 21
  

	*

  

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

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

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

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

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

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

  
  

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

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

REPORT TO *         LEASE GROUP ANY

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

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

AMM 79-00-00-200-804

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

 
 YES

NO
  

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

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

AMM 79-21-03-000-802

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

 
 YES

NO
	 	
					
		 	 For info only: Inspection Threshold 7500

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

  

			
	 23
  

	*

  

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

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

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

 
 YES

NO
	 	
					
		 	 For info only: Inspection Threshold 7500

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

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

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

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

REPLACE WITH NEW FILTER AND CONSUMABLES.
  

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

 
 For info only: Inspection Threshold 6000

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

AMM 73-11-02-000-801

AMM 73-11-02-400-801

FAA AD Note 2006-26-01
	 	 CONTAMINATION
 FOUND:

 
 YES

NO
  

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

AMM 73-11-03-400
	 	 CONTAMINATION
 FOUND:

 
 YES

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

  
  

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

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

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

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

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

AMM 72-21-00-640-801

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

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

FH, Repeat 7500 FH.
	 		 		 	

  

			
	 25
  

	*

  

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

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

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

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

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

AMM 72-20-00-210-801

AMM 72-60-00-200-801

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

AMM 51-05-01-210

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

AMM 51-05-01-210

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

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

 
 NOTE: Engine off-wing.

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

AMM 51-05-01-210

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

ATTACHMENT BOLTS FOR THE THRUST MOUNT FITTINGS.
  

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

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

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

NOTE: Engine off-wing.
  

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

  

			
	 27
  

	*

  

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

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

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

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

 
 YES

NO
  

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

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

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

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

INDICATOR.
  

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

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

800 FH.
	 		 		 	
					
	13.3	 	 DETAILED INSPECTION OF IDG OIL

LEVEL.
  

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

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

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

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

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

AMM 24-11-41-000-801

AMM 24-11-41-200-801

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

 
 YES

NO
  

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

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

AMM 24-11-61-200-801
	 		 	

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

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

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

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

REPLACED:
  

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

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

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

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

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

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

  

			
	 29
  

	*

  

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

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

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

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

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

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

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

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

  

			
	 31
  

	*

  

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

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

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

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

 Appendix D – Use Fee Amount (Flight Hour) 

 

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

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

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

 

  

			
	 33
  

	 *

  

  

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

 Appendix E – Harsh Environment Countries 

 

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

 Appendix F – Non-Incident Statement 

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

 NON-INCIDENT STATEMENT 

Dated:                         

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

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

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

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

 

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

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

			
	                            

			
		
	By:	 	 

			
		
	Typed Name:	 	 

			
		
	Title:	 	 

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

  

			
	 35
  

	*

  

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

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

Certification and Representation 

Regarding Items Subject to Export Control Requirements 

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

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

  

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

  

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

 

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

  

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

 

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

  

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

 Name: 

Address: 

Ultimate Destination: 
  

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

  
  

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

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

 

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

  

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

  

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

 

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

  

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

  

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

  

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

  

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

  

			
	 37
  

	*

  

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

 Appendix H – Open Item List 

 

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

  
  

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

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

  
 39 

 

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

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

  
  

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

																	
	*	 		  	Engine Major Component List (LRU)	  		  		  	

 Type: CFM56-7B    S/N: 874771 

 

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

  

					
	TPR20	  	1/4	  	

  

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

																	
	*	 		  	Engine Major Component List (LRU)	  		  		  	

Type: CFM56-7B    S/N: 874771 

 

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

  

					
	TPR20	  	2/4	  	

  

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

																	
	*	 		  	Engine Major Component List (LRU)	  		  		  	

 Type: CFM56-7B     S/N: 874771 

 

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

  

					
	TPR20	  	3/4	  	

  

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

																	
	*	 		  	Engine Major Component List (LRU)	  		  		  	

 Type: CFM56-7B    S/N: 874771 

 

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

  

											
	*	 		 		  	Prepared By	  	*               
                     	  	
				 	 	
		 		 		  	Reviewed By	  	*                    
                	  	AUG 23 2017

  

					
	TPR20	  	4/4	  	

  

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

																	
	*	 		  	Engine Major Component List (QEC)	  		  		  	

 Type: CFM56-7B    S/N: 874771 

 

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

  

					
	TPR20	  	1/2	  	

  

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

																	
	*	 		  	Engine Major Component List (QEC)	  		  		  	

 Type: CFM56-7B    S/N: 874771 

 

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

  

											
	*	 		 		  	Prepared By	  	*               
                     	  	
				 	 	
		 		 		  	Reviewed By	  	*                    
                	  	AUG 23 2017

  

					
	TPR20	  	2/2	  	

  

	*	 The confidential portion has been omitted pursuant to a request for confidential treatment filed by Air T, Inc.
with the Securities Exchange Commission and filed separately with the Commission.EX-10.7

 Exhibit 10.7 

EXECUTION COPY 
 ENGINE LEASE
AGREEMENT 
 BETWEEN 

CONTRAIL AVIATION SUPPORT, LLC, 

as Lessor 
 and 

*            
        , 
 as Lessee 

 
  

One (1) CFM International, Inc. Model CFM56-7B26 Aircraft Engine 

Bearing Manufacturer’s Serial Number
*             

 
  

  

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

 TABLE OF CONTENTS 

 

							
	 SECTION 1.
	 	 SCOPE OF LEASE
	  	 	1	 
			
	 SECTION 2.
	 	 TERM
	  	 	2	 
			
	 SECTION 3.
	 	 CONDITIONS PRECEDENT AND DELIVERY
	  	 	3	 
			
	 SECTION 4.
	 	 PAYMENT
	  	 	5	 
			
	 SECTION 5.
	 	 COMPLIANCE WITH LAWS
	  	 	6	 
			
	 SECTION 6.
	 	 USE AND MAINTENANCE
	  	 	7	 
			
	 SECTION 7.
	 	 RECORDS AND INSPECTION
	  	 	9	 
			
	 SECTION 8.
	 	 MODIFICATIONS
	  	 	11	 
			
	 SECTION 9.
	 	 LOSS EVENT
	  	 	11	 
			
	 SECTION 10.
	 	 NO ABATEMENT OR SET OFF
	  	 	11	 
			
	 SECTION 11.
	 	 RELEASE AND INDEMNITY
	  	 	11	 
			
	 SECTION 12.
	 	 LIMITED WARRANTY AND DISCLAIMER
	  	 	13	 
			
	 SECTION 13.
	 	 FORCE MAJEURE
	  	 	14	 
			
	 SECTION 14.
	 	 INSURANCE
	  	 	14	 
			
	 SECTION 15.
	 	 TITLE TO ENGINE
	  	 	18	 
			
	 SECTION 16.
	 	 TAXES
	  	 	19	 
			
	 SECTION 17.
	 	 ASSIGNMENT AND SUBLEASING
	  	 	20	 
			
	 SECTION 18.
	 	 REDELIVERY OF THE ENGINE
	  	 	21	 
			
	 SECTION 19.
	 	 TERMINATION AND ADDITIONAL ASSURANCES
	  	 	24	 
			
	 SECTION 20.
	 	 NOTICES
	  	 	27	 
			
	 SECTION 21.
	 	 RECORDING
	  	 	28	 
			
	 SECTION 22.
	 	 BROKERS/FINDERS
	  	 	28	 
			
	 SECTION 23.
	 	 MISCELLANEOUS
	  	 	28	 
			
	 SECTION 24.
	 	 GOVERNING LAW AND JURISDICTION
	  	 	29	 
			
	 SECTION 25.
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	31	 
			
	 SECTION 26.
	 	 CONFIDENTIALITY
	  	 	33	 

  
 i 

 SCHEDULES 
  

			
	 SCHEDULE 1
	  	 FORM OF DELIVERY RECEIPT

		
	 SCHEDULE 2
	  	 FORM OF DELIVERY ACCEPTANCE CERTIFICATE

		
	 SCHEDULE 3
	  	 FORM OF MONTHLY UTILIZATION REPORT

		
	 SCHEDULE 4
	  	 FORM OF NON-INCIDENT STATEMENT

		
	 SCHEDULE 5
	  	 FINANCIAL TERMS

		
	 SCHEDULE 6
	  	 FORM OF ACKNOWLEDGEMENT OF ENGINE OWNERSHIP

		
	 SCHEDULE 7
	  	 FORM OF ENGINE OPERATIONAL REPORT

		
	 SCHEDULE 8
	  	 FORM OF ENGINE REDELIVERY CHECKS & INSPECTIONS REPORT

		
	 SCHEDULE 9
	  	 FORM OF LEASE TERMINATION AGREEMENT

		
	 SCHEDULE 10
	  	 END OF LEASE INSPECTION REQUIREMENTS

		
	 SCHEDULE 11
	  	 FORM OF REDELIVERY ACCEPTANCE CERTIFICATE

  
 ii 

 This ENGINE LEASE AGREEMENT (“Lease”), dated as of January 10, 2018, is
entered between: 
 CONTRAIL AVIATION SUPPORT, LLC, a limited liability company organized and existing under the laws of the State of North Carolina,
United States of America, with its principal place of business at 435 Investment Court, Verona, Wisconsin 53593, as lessor (“Lessor”); and 

*               
  , a company duly organized and existing under with the laws of
*                 , and having its
principal place of business at 
*                             
                                         
                                         
                                         
                                         
                                         
      , as lessee (“Lessee”) (both Lessor and Lessee individually referred to as a “Party” and collectively referred
to as the “Parties”). 
 Recitals 

Whereas, the Lessor owns the Engine (hereinafter defined); 

Whereas, Lessor and Lessee are willing to enter into this Lease for the leasing of the Engine by Lessee from Lessor; and 

for the consideration hereinafter set out, IT IS HEREBY AGREED: 
  

	1.	 SCOPE OF LEASE 

The Lessor agrees to lease the following engine, capable of operation at 26,300 pounds thrust at Delivery, together with full QEC, and with FAA 8130-3 certification and EASA Form 1, and copies of all related technical records in English in Lessor’s possession and related engine transportation stand (collectively, the “Engine”)
to the Lessee, and the Lessee agrees to lease the Engine from the Lessor, upon the terms set out in this Lease. 
  

			
	 1.1.  Type and Model:
                             CFM International, Inc., model CFM56-7B26 (described on the International
Registry drop down menu as CFM model CFM56-7)

	
	 1.2.  Serial
Numbers:                              
*             (also described on the International Registry drop down menu as
*            )

		
	 1.3.  Time Since New:
	  	49,190
		
	 1.4.  Cycles Since New:
	  	21649
		
	 1.5.  QEC:
	  	installed full QEC
		
	 1.6.  Thrust Rating:
	  	26,300 lbs.
		
	 1.7.  Cycles remaining at B26___:
	  	3,351
		
	 1.8.  Engine Transportation Stand:
	  	
		
	 a.   Base Serial Number: *12030-4
	  	

  
 1 

 

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

			
		
	 b.  Cradle Serial Number: *12030-4
	  	
		
	 c.   Manufacturer: DAE
	  	

  

	2.	 TERM 

  

	2.1.	 Lease Term. The term of this Lease shall commence on the Lease Commencement Date and shall terminate on
the Lease End Date (unless earlier terminated or extended in writing by the Parties) in accordance with the provisions of this Lease (“Lease Term”). On the Lease End Date or other date of valid termination of the Lease,
Lessee shall return the Engine to the Redelivery Location in accordance with the terms of this Lease. 

  

	2.2.	 Additional Definitions. In this Lease, the following terms have the following meanings:

 *“AACR” means Autoritalea
Aeronautica Civila Romana. 
 “Delivery” means the delivery
of the Engine by Lessor to Lessee in accordance with this Lease and which shall be evidenced by execution and delivery of the Delivery Receipt; 

“Delivery Acceptance Certificate” means the Delivery Acceptance Certificate in the form of Schedule 2 of the Lease;

 “Delivery Date” means the date of the Engine is delivered to Lessee as recorded in the Delivery Receipt; 

“Delivery Location” means the facilities of Aircraft Inspection & Management LLC located at 2481 W. Poppy
Avenue, Tucson, Arizona 85705, United States of America; 
 “Delivery Receipt” means the Delivery Receipt to be dated
the date of Delivery in the form of Schedule 1 of the Lease; 
 “Inspection” means a physical inspection of the
Engine and a review of Engine records; 
 “Inspection Deadline” means no later than the later of fifteen calendar
(15) days following the Delivery Date and 5 (five) calendar days after the Engine is received at the Lessee’s facility if Lessee has shipped the engine to its facility within fifteen (15) calendar days after the Delivery Date; 

“Lease Commencement Date” means January 15, 2018; 

“Lease End Date” means the earlier of (i) the thirty sixth monthly anniversary of the Lease Commencement Date and
(ii) the date on which the Engine is returned to Lessor at the Redelivery Location due to the earlier of:
*                              
                                         
                                    

			
		
		  	

  
 2 

 

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

					
	*	  		  	    
		  		  	

 “Redelivery Acceptance Certificate” means the Redelivery Acceptance Certificate
in the form of Schedule 11 of the Lease; 
 “Redelivery Location” means the facilities of Aircraft
Inspection & Management LLC located at 2481 W. Poppy Avenue, Tucson, Arizona 85705, United States of America, or subject to clause 18.1, such other location as designated by Lessor; and 

“Rent Commencement Date” means the Delivery Date; 

 

	3.	 CONDITIONS PRECEDENT AND DELIVERY 

 

	3.1.	 Conditions Precedent. The obligations of Lessor under the Lease and the transfer of possession of the
Engine to Lessee under the Lease are conditional upon Lessor’s receipt, on or before the Delivery, as defined below, and in form and substance satisfactory to Lessor, of each of the following: 

 

	 	a.	 Lease and Technical Acceptance Certificate: two (2) duly executed originals of this
Lease and two (2) duly executed copies of the Delivery Receipt; 

  

	 	b.	 Insurance: (i) a copy of certificates of insurance and
re-insurance as may be required pursuant to the Lease; (ii) an undertaking from brokers (acceptable to Lessor as set out in Section 14); and (iii) any other evidence satisfactory to Lessor
evidencing compliance with the insurance provisions of the Lease; 

  

	 	c.	 Payments: all sums due to Lessor prior to and on Delivery or any other engine lease agreement
between Lessor and its affiliates and Lessee and its affiliates, including, without limitation, the first month’s Lease Rate, and the Deposit; 

  

	 	d.	 Lessee Documents: a copy of the organizational documents of the Lessee, certified by an officer
of the Lessee, and other evidence authorizing execution, delivery and performance by Lessee of the Lease and each other document relating thereto to which Lessee is or will be a party; 

 

	 	e.	 Incumbency Certificate: a certificate signed by an officer of Lessee confirming that the person
who is to sign the Lease for and on behalf of Lessee is authorized by Lessee to sign the Lease for and on behalf of Lessee; 

  

	 	f.	 Process Agent Letter: a letter from the Process Agent (as hereinafter defined) confirming its
acceptance of the appointment of agent for service of process by Lessee pursuant to this Lease; 

  
 3 

 

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

	 	g.	 Lease Termination Agreement: a lease termination agreement in the form of Schedule 9 duly
executed by Lessee but undated (the “Lease Termination Agreement”); 

  

	 	h.	 KYC: information and documents requested by Lessor related to Know-Your-Customer or other
background checks and verification required by the Office of Foreign Assets Control of the U.S. Department of Treasury (“OFAC”) or other applicable governmental offices and agencies, including those required to verify
compliance with Section 5 below; and 

  

	 	i.	 General: such other documents as Lessor may reasonably request. 

 

	3.2.	 Delivery. 

  

	 	a.	 Following its receipt of the Deposit and the satisfaction or waiver of the conditions precedent set forth in
Section 3.1, Lessor, at Lessee’s expense, will deliver the Engine to Lessee at the Delivery Location. On Delivery, the Engine will have a Federal Aviation Administration (“FAA”) 8130-3 dual
release serviceable tag and an EASA Form 1 serviceable tag affixed to it. Immediately upon receipt of the Engine, Lessee shall execute and deliver to Lessor, and Lessor shall acknowledge, a Delivery Receipt for the Engine; provided however, that no
later than the Inspection Deadline, Lessee or any of its appointed contractors shall be entitled to perform and, if performed, shall have completed an inspection of the Engine, including, without limitation, an
on-wing or test cell power assurance run and a borescope inspection. Notwithstanding the fact that Lessee signed the Delivery Receipt, Lessee may reject the Engine by delivering written notice thereof to
Lessor before the Inspection Deadline, if such Engine is not in the condition required under this Agreement. Lessor shall have the right to confirm and correct such deficiencies within five (5) calendar days after its receipt of such notice.
Any written rejection of the Engine shall detail the reasons for rejection, which the Lessor shall acknowledge in writing. In such an event, and should Lessor elect not to correct such discrepancy, Lessee shall hold the Engine pending shipping
instructions, at which time Lessee shall ship the Engine at Lessor’s cost and expense (including insurance and packing). Upon receipt by Lessor of the Engine, in the same condition and modification status and with the same appliances, parts,
accessories, appurtenances, instruments, modules, components, line replacement units (“LRUs”) as when delivered to Lessee and other items of equipment of whatever nature, which may from time to time be incorporated in or
installed on the Engine or which, having been removed from the Engine, remain the property of Lessor (collectively, the “Parts”), (i) this Lease shall terminate, (ii) all funds previously received by Lessor from Lessee
pursuant to this Lease shall be released to Lessee without any deductions not more than (2) two business days after Lessor confirms such receipt and (iii) neither party shall have any further obligation or liability to the other under this
Lease except for the confidentiality clause 26 and those obligations, liabilities and agreements in this Lease which specifically survive the cancellation, expiration or termination of this Lease. If Lessee fails to notify Lessor before the
Inspection Deadline, Lessee shall be deemed to have 

  
 4 

	 	
accepted the Engine. In the event that Lessee accepts or is deemed to have accepted the Engine, Lessee shall execute and deliver to Lessor the Delivery Acceptance Certificate within five
(5) calendar days after the expiration of the Inspection Period 

  

	 	b.	 Lessee shall pay for and indemnify, defend, and hold Lessor harmless from and against any and all liabilities,
claims, damages, loss, cost or expense arising from or associated with the inspections as set forth in Section 3.2(a). Alternatively the Lessee may elect to use the current Lessor-provided borescope inspection to base its decision on the
serviceability of the Engine, in which case any redelivery borescope obligations shall be conducted with consideration or exception given for findings with respect to such Lessor-provided borescope inspection. 

 

	 	c.	 Immediately upon Delivery and throughout the Lease Term, the Engine will be in every respect at the sole risk
of Lessee, who will bear all risk of loss, theft, damage to or destruction of the Engine other than as stipulated in this Lease. 

  

	3.3.	 Aircraft Notification. Within seventy–two (72) hours after installation of the Engine on an
aircraft, Lessee will notify Lessor of the type, serial number and registration number of such aircraft and deliver to Lessor a disk sheet (LLP List) in the form required by Lessor, printed on Lessee’s letterhead and signed, stamped and dated
by Lessee’s quality control department. 

  

	3.4.	 Recognition of Rights. Prior to installation of the Engine on an aircraft, Lessee shall procure and
furnish Lessor assurances in the form of Schedule 6 to the Lease or, if applicable, in such other form as may be requested by and acceptable to Lessor or any lender as notified by Lessor to Lessee as having an interest in the Engine and/or the Lease
(“Lender”), from each owner, lessor, mortgagee and lienholder holding any right, title, or interest in the aircraft upon which the Engine is to be installed. 

 

	3.5.	 Delayed Delivery. Lessor shall not be responsible for any losses suffered by or incurred by Lessee or
any other person, arising from, or in connection with, any delay in delivery or failure to deliver the Engine under the Lease, unless such losses were suffered as a result of delays directly attributable to willful misconduct and gross negligence by
Lessor. 

  

	4.	 PAYMENT 

 

	4.1.	 Additional Definitions. In this Lease, the terms “Lease Rate” and
“Supplemental Rent” shall have the meanings ascribed to such terms as set forth in Schedule 5. 

  

	4.2.	 Payments. All payments shall be made by Lessee to Lessor when due without prior demand by wire transfer
of immediately available funds to the bank account set forth in Schedule 5. 

  

	4.3.	 Lease Fees. Lessee shall pay to Lessor the Lease Rate and the Supplemental Rents described in Schedule 5
(individually and collectively, the “Lease Fees”) during the Lease Term. 

  
 5 

	4.4.	 Payment Dates. The Lessee shall pay to Lessor the Lease Rate and the Supplemental Rent on the applicable
dates as set forth in Schedule 4 (each a “Due Date”); provided that, if any date on which a payment is due hereunder is not a day on which commercial banks are open in Evansville, Indiana, United States of America and *                                    
                                  (a “Business Day”),
such payment shall be made on the immediately following Business Day. All Lease Fees are exclusive of all duties, charges and imposts, and any applicable sales, use, excise, transfer, gross receipts, withholding or other taxes or similar charges of
any kind (excluding only taxes on the income received by Lessor) (“Taxes”), which shall be paid by Lessee. Lessee shall be responsible for all transportation, insurance, packing charges, registration, import and export fees
and customs duty, if any, arising in connection with this Lease. 

  

	4.5.	 Net Lease. This Lease is a net lease and the Lessee’s obligations to pay the Lease Fees and to make
all other payments and perform all other obligations in accordance with this Lease shall be absolute and unconditional (except as otherwise expressly provided herein) and irrespective of any contingency whatsoever, including, but not limited to:

  

	 	a.	 any right of set-off, counterclaim, recoupment, defense, or other right
that Lessee may have in the event that any such set-off, counterclaim, recoupment, defense or other right should apply; 

 

	 	b.	 any insolvency, bankruptcy, reorganization, arrangement, readjustment of debt, dissolution, liquidation or
similar proceedings by or against the Lessor or the Lessee; 

  

	 	c.	 any invalidity or unenforceability or lack of due authorization of, or other defect in, this Lease; and

  

	 	d.	 any other cause which (but for this provision) would or might have the effect of terminating or in any way
affecting any obligation of the Lessee hereunder. 

  

	4.6.	 Payments Following Termination. Notwithstanding the foregoing, Lessee shall not be required to continue
to pay the Lease Fees if the Lease is terminated prior to the Lease End Date in accordance with the terms hereof; provided, however, that the termination of Lessee’s obligation to pay Lease Fees described in this sentence shall not apply in the
event that the Lease is terminated following an Event of Default (hereinafter defined).  

  

	5.	 COMPLIANCE WITH LAWS 

This Agreement shall be subject to all United States of America (“United States” or “U.S.”) laws and
regulations now or hereafter applicable to the subject matter of this Agreement, including, but not limited to, applicable export control provisions of Title 50 of the United States Code (50 USC App. 2401 et seq.). Lessee will comply in all
respects with all laws, ordinances, rules, regulations and orders of all governmental authorities applicable to the installation, operation and maintenance of Engine. Lessee will not cause or permit the Engine to be flown or transported to any
airport or country if so doing would cause Lessor to be in violation of any law, rule, regulation or decree of the United States, the European Union, or any other country or 

  
 6 

 

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

 political sub-division thereof or trans-national body having
jurisdiction over Lessee or Lessor or the Engine or any airframe upon which the Engine may, from time to time, be installed upon. To this effect, Lessee acknowledges that the Engine may be subject to export control laws of the United States and
Lessee shall not (without limiting the provisions of Section 17 of this Lease) assign this lease or further lease or sublease the Engine to any person that is (i) subject to U.S., European Union, United Kingdom multilateral or other
economic or trade sanctions currently in force; (ii) owned or controlled by, or acting on behalf of, any person that is subject to U.S., European Union, or United Kingdom multilateral economic or trade sanctions currently in force,
(iii) named, identified or described on any blocked persons list, designated nationals list, prohibited persons list, or other official list of persons with whom U.S. or United Kingdom persons may not conduct business, including, but not
limited to, lists published or maintained by OFAC, (B) the U.S. Department of Commerce, or (C) the U.S. Department of State. 
  

	6.	 USE AND MAINTENANCE 

 

	6.1.	 Use. Lessee will not permit the Engine to be stored, maintained, used or operated in violation of any
law, or in violation of any airworthiness certificate, or license or registration issued by any government or regulatory authority, or contrary to the operating manuals or instructions for the Engine in effect from time to time. Lessee agrees not to
operate the Engine (i) unless the Engine is covered by insurance as required by the provisions hereof, or (ii) contrary to the terms of such insurance. Lessee also agrees not to operate, store or otherwise locate the Engine in any
jurisdiction excluded from coverage by an insurance policy issued with respect to the Engine required under this Lease. The Lessee shall use its best efforts to install the engine on an aircraft and to keep the Engine operating during the Lease
Term. The Engine shall not be removed from operation for any period exceeding three weeks at a time unless installed on an aircraft undergoing scheduled heavy airframe maintenance. 

 

	6.2.	 Maintenance and Repair. 

 

	 	a.	 Lessee, at its own cost and expense, shall: (i) perform, or caused to be performed, all mandatory service,
inspections, maintenance and testing that can be accomplished on-wing, (A) as may be required under applicable EASA and/or *AACR (the “Aviation
Authority”) rules and regulations, including, without limitation, any Manufacturer’s alert service bulletin that has been rendered mandatory by the Aviation Authority by means of an Airworthiness Directive
(“AD”) and any AD that has been rendered mandatory by the Aviation Authority and all such ADs shall be performed in strict compliance with the requirements thereof or by application of or utilization of any alternate means of
compliance approved by the Aviation Authority at all times and in compliance with a maintenance program for the Engine approved by the Aviation Authority (the “Maintenance Program”), which shall include, but shall not
be limited to, routine scheduled and condition monitored line maintenance, and replacement or repair of LRUs and QEC as required, in full compliance with the Aviation Authority requirements in force from time to time, (B) in the same manner and
with the same care as shall be the case with similar engines owned by or operated by or on behalf of the Lessee, (C) so as to keep the Engine in as good operating 

  
 7 

 

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

	 	condition as on the Delivery Date, reasonable wear and tear excepted, provided, however, Lessee shall be responsible for the replacement or repair of LRUs due to reasonable wear and tear, and (D) such that when
installed on a commercial transport aircraft shall at all times be eligible for airworthiness certification; and (ii) maintain, or cause to be maintained, all Engine records, documents and other materials with respect to the Engine (the
“Technical Documents”) required by, and in a manner acceptable to, the FAA and EASA and any other governmental entity having jurisdiction. Lessee shall assume and bear, at its own risk and expense, all risk for loss or damage
to the Engine and all components and parts from any and every cause whatsoever, other than normal wear and tear except as otherwise provided in this Agreement. 

  

	 	b.	 Lessor shall not be liable for any on-wing expense whatsoever incurred
during the Lease Term other than normal wear and tear except as otherwise provided in this Agreement. For the avoidance of doubt, foreign object damage (“FOD”), misuse, mishandling, neglect, negligence or improper operation
shall not constitute ordinary wear and tear for any purposes under the Lease. Quick Access Recorder data shall be utilized to establish whether or not Operator Exceedance, as defined below, shall have occurred. 

 

	 	c.	 Any repairs required to the Engine that are attributable to FOD, misuse, mishandling, neglect, negligence or
improper operation outside of the specifications or procedures as laid down in the Manufacturer’s maintenance and AFM and operating manuals after Delivery and during the Lease Term (“Operator Exceedance”), shall be for
Lessee’s account and Lessee hereby indemnifies Lessor in full on demand against the cost of any such repairs both during or after Delivery and during the Lease Term until the date the Redelivery Acceptance Certificate is executed by Lessor
except as reserved by the Redelivery Acceptance Certificate. Lessee shall have no responsibility for any damage to the Engine prior to the Delivery Date and for damage and cost of repair resulting from normal wear and tear and LLP life expiration
except as otherwise provided in this Agreement. 

  

	 	d.	 When not installed upon an aircraft, Lessee shall store and inhibit the Engine as required by the
Manufacturer’s recommendations. 

  

	 	e.	 After each Engine removal during the Lease Term, Lessee will provide a completed engine operational report to
Lessor substantially in the form of Schedule 7. 

  

	 	f.	 Lessee shall, if requested by Lessor, provide access to the Lessee’s Maintenance Program for evaluation by
Lessor. 

  

	 	g.	 In the event that a routine borescope inspection performed during the Lease Term discloses that the Engine is
unserviceable and can be repaired on-wing (i) Lessee shall perform such repair to restore serviceability in order to continue the Lease Term, providing that indications are that a reasonable 26,300 lbs.
operating 

  
 8 

	 	margin will result from such repair. In the event a reasonable margin at 26,300 lbs. thrust cannot be achieved, and therefore the Lease terminates, then the Lessee shall still perform the
on-wing repair (as defined as borescope blending, but does not include module removals) in order to meet the redelivery conditions and issue an EASA Form 1 tag for serviceability at 26,300 lbs. of thrust.

  

	 	h.	 Lessee shall monitor the Engine in accordance with its trend monitoring program and follow the procedures of
such program to troubleshoot and correct any alarm conditions. 

  

	6.3.	 Replacement Parts. Lessee shall not replace any serviceable Part in the Engine without Lessor’s
prior written approval nor replace any unserviceable Part with a part of a lower part number, modification standard and Service Bulletin status than the Part that is unserviceable. In the event that there is a dispute between Lessee and Lessor as to
whether or not a Part is unserviceable, Lessee and Lessor agree to submit the dispute to the Engine manufacturer for resolution of such dispute and to abide by the Engine manufacturer’s decision. Lessee shall not install any Part Manufacturer
Approval (PMA) parts (without prior written approval from Lessor) and shall not perform Designated Engineering Representative (DER) repairs (without prior written approval from Lessor) on the Engine at any time after Delivery and during the Lease
Term. Lessee shall ensure that during such period, no LLP in the Engine is removed or replaced without Lessor’s prior written approval. All replacement Parts will be free and clear of liens and of equal or better value, time since overhaul,
remaining useful life, modification status and service bulletin status than the Part replaced, assuming such replaced Part was in the condition required by the Lease. All such replacement Parts must have been last serviced by an FAA / EASA approved
repair facility, with back to birth traceability on all LLPs, and such replacement Parts will become the property of Lessor immediately upon their installation on the Engine. All Parts replaced in accordance with the foregoing requirements will
become the property of Lessee immediately upon the installation of the replacement Part on the Engine in accordance with this Section 6.3. 

  

	7.	 RECORDS AND INSPECTION 

 

	7.1.	 Maintenance Records. Lessee will maintain complete and accurate records in English for the Engine after
Delivery and during the Lease Term and will provide them to Lessor on request. All such records will be deemed to be part of the Engine at the time generated. Within five (5) days after the end of each month, Lessee will report to Lessor the
Flight Hours and Flight Cycles of operation and the registration number of the aircraft on which the Engine is installed substantially in the form of Schedule 3. Lessee will provide copies of all significant maintenance tasks performed on the
Engine, including both scheduled and unscheduled maintenance. Lessee will also provide copies of trend monitoring data (engine health monitoring on request). Upon redelivery of the Engine to Lessor, Lessee will report to Lessor the total Flight
Hours and Flight Cycles operated during the Lease Term. 

  

	7.2.	 Redelivery Records. Upon redelivery of the Engine to Lessor as set out in Section 18, Lessee will
return all Technical Documents delivered to Lessee by Lessor, together with all Technical Documents generated by Lessee, including all significant and most recent insignificant maintenance tasks performed after Delivery and during the Lease Term.

  
 9 

	7.3.	 Parts Installed. With respect to any Part installed by Lessee after Delivery and during the Lease Term
and not removed prior to the return of the Engine, the Technical Documents returned to Lessor will include: 

  

	 	a.	 Part number, description, and serial number (if part is serialized); and 

 

	 	b.	 historical records, including, but not limited to: 

 

	 	i.	 serviceability status of the Part at installation; 

 

	 	ii.	 for a time-controlled Part, time since new (TSN) and cycles since new (CSN), time and cycles since overhaul as
may be applicable, and TSN and CSN of the Engine at the time of part installation; and 

  

	 	iii.	 for a LLP, documentation tracing usage of the part since new in the form of fully certified back to birth
history, including, but not limited to: 

  

	 	•	 	 history card (overview signed by the last operator or owner) recording movement of a part from one engine/ module
to another, from one operator to another, starting from TSN = 0 and CSN =0 until present (installed/removed data); 

  

	 	•	 	
non-incident/non-accident/non-military
 use declaration from operators for every history card step; 

  

	 	•	 	 disk sheet (LLP List) with actual removal information (TSN/CSN/removal date) of the Engine in the form required
by Lessor, printed on Lessee’s letterhead and signed, stamped and dated by Lessee’s quality control department for each installation and removal of the Engine on to and off of an aircraft during the Lease Term; 

 

	 	•	 	 supporting documents (off-on logs,
off-on disk sheets) printed on operator’s letterhead and signed from operators for every history card step; 

  

	 	•	 	 document indicating authenticity of part by one of the following: 

 

	 	–	 release certificate new part, or 

 

	 	–	 purchase order from OEM for new part, or 

 

	 	–	 OEM specific birth record for engines; and 

 

	 	•	 	 Comprehensive current status of FAA and EASA airworthiness directives (ADs) issued against the Engine type
signed, by Lessee’s quality control department. 

  

	7.4.	 Inspection. Lessee shall permit representatives of Lessor on request to inspect the Engine and any part
thereof without disassembling same, such inspection to include borescope inspection only if such borescope inspection is scheduled, and review and copying of the 

  
 10 

	 	Technical Documents, provided that such representatives shall endeavor not to disrupt Lessee’s commercial operations in doing so. 

 

	7.5.	 Additional Definitions. In this Lease, the following terms have the following meanings:
“Flight Cycle” means one take-off and landing of an airframe upon which the Engine is installed; and “Flight Hour” means each hour or fraction
thereof, measured to two decimal places, elapsing from the moment the wheels of the airframe upon which the Engine is installed leaves the ground on take-off to the moment when the wheels of the airframe upon
which the Engine is installed touches the ground on landing. 

  

	8.	 MODIFICATIONS 

Lessee will not make any modifications or alterations to the Engine without Lessor’s prior written consent. 

 

	9.	 LOSS EVENT 

In the event of actual or constructive total loss or destruction of the Engine or damage thereto beyond economic repair after Delivery and during the Lease
Term (including any event which results in an insurance settlement on the basis of a total loss or a constructive or compromised constructive loss), or the loss of possession or detention of the Engine for more than thirty (30) days by reason
of seizure, requisition (including requisition of title of the Engine by or on authority of any governmental entity or by any creditor of Lessee), theft, disappearance, or otherwise (the “Loss Event”),
Lessee will immediately notify Lessor and any Lender thereof. In the event of such a Loss Event, Lessee shall upon the earlier of 90 days after the date of such Loss Event and the date of receipt of the insurance proceeds pay Lessor (or Lender, if
any) the Agreed Value, together with all other payments owing hereunder through the date of such payment of the Agreed Value and the Lease will terminate upon payment of all such amounts at which point Lessee shall have no further obligations
regarding the Lease Rate and Supplemental Rent. Lessor shall subsequently transfer title to the Engine to Lessee, subject to the rights of affected insurance companies. “Agreed Value” shall have the meaning ascribed to
such term as set forth in Schedule 5. 
  

	10.	 NO ABATEMENT OR SET OFF 

This Lease is a net lease. Lessee’s obligations to pay all charges herein are absolute and unconditional and Lessee will not be entitled to any abatement,
reduction of, or set off against, the Lease Rate, Supplemental Rent or other payments due to Lessor under any circumstances or for any reason whatsoever. 
  

	11.	 RELEASE AND INDEMNITY 

 

	11.1.	 INDEMNITY. LESSEE HEREBY RELEASES AND AGREES TO INDEMNIFY, DEFEND AND HOLD EACH OF THE LESSOR, ANY
LENDER, ANY SERVICER, AND THEIR RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, MANAGERS, MEMBERS, EMPLOYEES, AGENTS, SUBCONTRACTORS, ASSIGNEES AND AFFILIATES (COLLECTIVELY THE “INDEMNITEES” AND 

  
 11 

 EACH INDIVIDUALLY, AN “INDEMNITEE”) HARMLESS FROM AND AGAINST ANY
AND ALL LIABILITIES, (INCLUDING, WITHOUT LIMITATION, LIABILITIES ARISING OUT OF THE DOCTRINE OF STRICT LIABILITY), OBLIGATIONS, CLAIMS, PENALTIES, FINES, LIENS, DEMANDS, ACTIONS, SUITS, JUDGEMENTS, COSTS, EXPENSES AND DISBURSEMENTS, DAMAGES, AND
LOSSES (INCLUDING WITHOUT LIMITATION ALL REASONABLE LEGAL FEES AND EXPENSES, COSTS OF INVESTIGATION AND OTHER EXPENSES IN CONNECTION THEREWITH OR INCIDENT THERETO) OF WHATEVER KIND AND NATURE WHICH MAY BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST
ANY OF THE INDEMNITEES IN ANY WAY RELATING TO OR ARISING OUT OF THIS LEASE, INCLUDING BUT NOT LIMITED TO THE LOSS OR DESTRUCTION OF OR DAMAGE TO ANY PROPERTY OR DEATH OR INJURY OF OR OTHER LOSS OF WHATSOEVER NATURE SUFFERED BY ANY PARTY (INCLUDING
WITHOUT LIMITATION LESSEE’S EMPLOYEES), AND FOR LOSS OF OR DAMAGE TO OR DELAY IN THE DELIVERY OF ANY PROPERTY WHATSOEVER (INCLUDING WITHOUT LIMITATION ANY AIRCRAFT ON WHICH ANY ENGINE MAY BE INSTALLED AND LOSS OF USE THEREOF) (COLLECTIVELY, THE
“CLAIMS”), IN ANY MANNER CAUSED BY, ARISING OUT OF OR RELATED TO OR IN ANY WAY CONNECTED WITH (IN EACH CASE WHETHER DIRECTLY OR INDIRECTLY) THE DESIGN, MANUFACTURE, TESTING, DELIVERY, IMPORT, EXPORT, LEASING, STORAGE,
TRANSPORTATION, INSTALLATION, REMOVAL, INSURANCE, OPERATION, MAINTENANCE, REPAIR, CONDITION, SERVICE, OVERHAUL, MODIFICATION, CHANGE, ALTERATION, USE, CONTROL, POSSESSION, DETACHMENT, DISPOSAL OR REDELIVERY OF THE ENGINE OCCURRING OR ARISING FROM
THE PERIOD DURING WHICH THE ENGINE IS LEASED TO LESSEE UNDER THIS LEASE, INCLUDING, WITHOUT LIMITATION, ANY CLAIMS ARISING OUT OF VIOLATIONS OF LAW AND ANY CLAIM FOR PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT OTHER THAN ANY SUCH CLAIM ARISING
THROUGH THE MANUFACTURE OF THE ENGINE. 
 NONE OF THE INDEMNITEES SHALL BE LIABLE TO LESSEE OR ANY OTHER PARTY, WHETHER IN CONTRACT OR IN
TORT FOR ANY UNAVAILABILITY, LOSS OF USE OR SERVICE, LOSS OR DELAY IN CONNECTION WITH THE ENGINE WHATSOEVER, WHETHER ON BOARD A HOST AIRCRAFT OR ELSEWHERE AND IRRESPECTIVE OF WHETHER SUCH OCCURRENCE ARISES DUE TO ANY ACT OR OMISSION OF LESSOR EXCEPT
TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY INDEMNITEE WHILE THE ENGINE WAS IN LESSEE’S CONTROL, OR PRIOR TO THE COMMENCEMENT OF THIS AGREEMENT. 

 

	11.2.	 DAMAGES. IN NO EVENT WILL LESSOR BE LIABLE FOR ANY REASON FOR SPECIAL, INCIDENTAL, OR CONSEQUENTIAL
DAMAGES, SUCH AS LOST REVENUES, LOST PROFITS, OR LOSS OF PROSPECTIVE ECONOMIC ADVANTAGE, RESULTING FROM ITS PERFORMANCE OR FAILURE TO PERFORM UNDER THIS LEASE. 

  
 12 

	11.3.	 Waiver. Lessee hereby waives and releases each of the Indemnitees from any Claims (whether now existing
or hereafter arising) for or on account of or arising or in any way connected with injury to or death of personnel or any agent of Lessee or loss or damage to property of Lessee or the loss of use of any property which may result from or arise in
any manner out of or in relation to the manufacture, purchase, delivery, leasing, condition, use, maintenance, storage, repossession or operation of the Engine, either in the air or on the ground, or which may be caused by any defect in the Engine,
from the material or any part used therein or from the design or testing thereof, or use thereof or from any maintenance, service, repair, overhaul or testing of the Engine regardless of when such defect may be discovered, whether or not the Engine
is at the time in the possession of the Lessee and regardless of the location of the Engine at any such time except when such injury, death, loss, loss of use or damage results from the gross negligence or the willful misconduct of Lessor.

  

	11.4.	 Survival. The provisions of Section 11 shall survive the termination of the Lease.

  

	12.	 LIMITED WARRANTY AND DISCLAIMER 

 

	12.1.	 Lease. Lessor warrants that it is authorized to lease the Engine to Lessee. 

 

	12.2.	 Quiet Enjoyment. Provided no Event of Default has occurred and such event is continuing hereunder,
Lessor covenants that neither Lessor nor any of their respective directors, officers, employees, agents or representatives nor any person lawfully claiming through any of them will interfere with Lessee’s quiet, peaceful use and enjoyment of
the Engine. Subject to the provisions of this Lease, nothing shall be construed to limit Lessee’s rights and remedies in the event of Lessor’s breach of its covenant of quiet enjoyment set forth in Section 12.2 or to limit the
Lessee’s rights and remedies to pursue in a court of Law any claim it may have against Lessor or any other person. [NOTE: Lessor’s breach of the covenant of quiet enjoyment does not give Lessee the right to stop paying rent or exercise any
right of offset or any other right or remedy to which it may be entitled in violation of the “net lease” provisions of Section 4.5.] 

  

	12.3.	 “AS IS”. The Engine is leased and accepted by Lessee in its “AS IS, WHERE IS” and
“WITH ALL FAULTS” condition at the Delivery Location. Lessor makes no warranties whatsoever with respect to the Engine, express or implied, except as expressly provided in Sections 12.1 and 12.2 above. 

 

	12.4.	 DISCLAIMER. THE WARRANTIES SET FORTH IN THIS SECTION 12 AND THE OBLIGATIONS AND LIABILITIES OF LESSOR
THEREUNDER, ARE EXPRESSLY IN LIEU OF, AND LESSEE HEREBY WAIVES AND RELEASES LESSOR FROM ANY AND ALL OTHER WARRANTIES, AGREEMENTS, GUARANTEES, CONDITIONS, DUTIES, OBLIGATIONS, REMEDIES OR LIABILITIES, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE,
INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY AND FITNESS FOR INTENDED USE, WITH RESPECT TO THE ENGINE LEASED HEREUNDER OR LESSOR’S PERFORMANCE HEREUNDER. NO AGREEMENT OR UNDERSTANDING, VARYING, ALTERING, OR EXTENDING
LESSOR’S LIABILITY WILL BE BINDING ON LESSOR UNLESS IN WRITING AND SIGNED BY LESSEE’S AND LESSOR’S DULY AUTHORIZED OFFICER(S) OR REPRESENTATIVE(S). 

  
 13 

	12.5.	 Warranties. Upon Lessee’s request, and provided that no Event of Default has occurred and is
continuing, Lessor will use commercially reasonable efforts to assist Lessee in processing claims and enforcing rights of Lessor arising under any existing manufacturer’s or overhaul agency warranties for the Engine leased hereunder; provided
always that Lessee will indemnify Lessor for any reasonable costs and expenses incurred by Lessor in connection therewith, excluding costs of Lessor’s personnel. With respect to any such warranties, it is understood that, except as specifically
provided in this Section 12.5, Lessor will have no further liabilities to Lessee. 

  

	13.	 FORCE MAJEURE 

Neither Party, with the exception of any payments due hereunder, will be liable for failure to perform or any delays in performance hereunder to the exception
of any payments due hereunder due to acts of God, the public enemy, war or warlike operations, insurrection or riots, floods, explosions, fires, earthquakes, any governmental act, failure of transportation, strike or other labor disputes, acts or
omissions of the other Party or any other cause beyond such Party’s control. 
  

	14.	 INSURANCE 

 

	14.1.	 Insurances. Upon Delivery and during the Lease Term (unless a longer duration is specified below),
Lessee shall at its own risk and cost procure and maintain, or cause to be procured and maintained, the following insurances (collectively, the “Insurances”) in accordance with normal industry best practices through insurers
of international standing, experienced in aviation insurance, in the London or New York markets with an AM Best Rating of A- or better: 

 

	 	a.	 Comprehensive aviation liability insurance with respect to the Engine (including, without limitation,
Contractual Liability, Aircraft Third Party, Passenger, Baggage, Cargo, Mail, Airline General Third Party Liability, Products Liability, and War Liability) for a combined single limit (bodily injury/property damage) no less than that applicable to
similar aircraft in its fleet, but in no event less than the Minimum Liability Amount. The “Minimum Liability Amount” shall have the meaning ascribed to such term as set forth in Schedule 5. 

 

	 	b.	 Hull “All Risks” (including war and allied perils) insurance for the Agreed Value on an “agreed
value” basis at all times while the Engine is fitted to an aircraft, removed from the aircraft, and while in transit, on terms such that the Agreed Value of the Engine shall be paid to Lessor (or the Lender, if any) in addition to paying such
aircraft’s agreed value to any party financially interested in the aircraft. Any Hull “All Risks” insurance carried in accordance with this Section 14.1 shall not contain any provision for self-insured amounts or a deductible in
excess of the Deductible Limit. The “Deductible Limit” shall have the meaning ascribed to such term as set forth in Schedule 5. If separate Hull “All Risk” and “War Risk” insurances are arranged, such
insurances shall include a 50/50 provision in accordance with market practice. 

  
 14 

	 	c.	 Spares all-risk insurance, including engine test and running risks, war
and allied perils insurance, and fire extended coverage insurance on the Engine and Parts while removed from an aircraft, in an amount equal to the Agreed Value. 

 

	 	d.	 Insurances with respect to Lessee’s liability under the indemnities in Section 12 (to the extent of
the risks covered in such policies) for a period of *                 years after the expiry of the Lease Term or until the
next full performance restoration shop visit of the Engine, whichever is earlier, under which each Indemnitee shall be named as an additional insured. Lessee’s obligation under this Section 14.1(d) shall not be affected by Lessee ceasing
to be lessee or sublessee of the Engine and/or the occurrence of the Lease End Date and/or any of the Indemnitees ceasing to have any interest in respect of the Engine. 

 

	14.2.	 Endorsements. Each and any policy of insurance obtained and maintained pursuant to this Lease, and any
policy obtained in substitution or replacement of any such policies, shall contain endorsements satisfactory to Lessor and any Lender that (i) designate Lessor as owner of the Engine covered thereby and as additional named insured and sole loss
payee (except in the case of any Lender being named sole loss payee), and designate any Lender and their respective assigns and the other Indemnitees (collectively, the “Additional Insured”) as additional named insured (and
any Lender as sole loss payee), but without imposing upon the Additional Insured any obligation imposed upon the insured, including, without limitation, the liability to pay any premiums for any such policies; (ii) expressly provide that, in
respect of the interests of Lessor and/or the Additional Insured in such policies, the insurance shall not be invalidated by any action or inaction of Lessee and shall insure Lessor and the Additional Insured regardless of any breach or violation of
any warranty, declaration or condition contained in such policies by Lessee; (iii) provide that if such insurance is cancelled by the insurers for any reason whatsoever, or is adversely changed in any way with respect to the interests of Lessor
and the Additional Insured, or if such insurance is allowed to lapse for non-payment of premium, such cancellation, adverse change or lapse shall not be effective as to Lessor and the Additional Insured by
thirty (30) days (seven (7) days in the case of any war risks or allied perils coverage) after sending to Lessor and the Lender written notice by such insurer or insurers to Lessor and the Lender of such prospective cancellation, change or
lapse; (iv) include worldwide territorial limits, except for the countries excluded by aviation war risk underwriters; (v) provide that, as against Lessor and the Additional Insured, the insurer waives any rights of set-off, counterclaim or any other deduction, whether by attachment or otherwise, and waives any rights it may have to be subrogated to any right of any insured against Lessor and the Additional Insured with respect
to the Engine; and (vi) provide that in the event of any damage or loss, whether or not a Loss Event hereunder, and which results in a payment, such payment shall be payable solely and directly to the Lessor (or Lender, if any), as sole loss
payee, for the account of all interests, provided, however, that if the damage to the Engine does not constitute a Loss Event, and the amount of the payment is less than
*                                   
      United States 

  
 15 

 

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

	 	
Dollars ($*                ), such payment may be payable directly to
Lessor. Each such policy shall be primary without right of contribution from any other insurance which may be carried by Lessor and/or the Additional Insured, and shall expressly provide that all of the provisions thereof shall operate in the same
manner as if there were a separate policy covering each insured, provided any such policies shall not operate to increase the insurer’s limit of liability. All such Insurances shall include the terms of the Airline Finance/Lease Contract
Endorsement - AVN67B (or such replacement for AVN67B as in the future may be generally recognized in the aviation insurance market or shall be acceptable to Lessor and any Lender), and also in respect of liabilities the other Indemnitees, as
additional insureds and the “Contract Parties” under such Insurances, and shall otherwise be acceptable to Lessor and any Lender, including without limitation as to the level of self-insured risk. 

 

	14.3.	 Certificates. Prior to Delivery and on each renewal by Lessee of the insurance required hereby, but not
less often than annually, Lessee will furnish, or cause to be furnished, to Lessor and any Lender a certificate executed and delivered by an insurance broker who is authorized by an insurer approved by Lessor and any Lender, describing in reasonable
detail insurance carried on the Engine and certifying that the insurance then maintained on the Engine complies with the terms of this Lease. 

  

	14.4.	 Brokers Undertaking. An undertaking from the insurance brokers shall be provided to Lessor and
any Lender before Delivery. Such undertaking shall include an undertaking to notify Lessor and any Lender promptly on becoming aware of (a) cancellation of, or any material adverse change affecting, the Insurances, (b) any act, omission or
event which might invalidate or render unenforceable the Insurances, or (c) non-receipt of renewal instructions at least seven (7) days before the expiration date of any policy, and shall be in form
acceptable to Lessor and any Lender. 

  

	14.5.	 Other Requirements. Lessor shall be entitled from time to time to stipulate other reasonable insurance
requirements that are in line with market conditions and no more onerous than the requirements stipulated in this Section 14, in addition to or instead of those prescribed in this Section 14, provided that such requirements are consistent
with normal industry practice for organizations operating aircraft similar to Lessee’s aircraft in similar circumstances. 

  

	14.6.	 Expiry. If any Insurances are due to expire during, or within fifteen (15) days after expiry of the
Lease Term, Lessee shall ensure that the renewal negotiation is commenced at least thirty (30) days prior to expiration of any of the Insurances and confirmation of completion of the renewal is given to Lessor and any Lender prior to expiry
date. Certificates of insurance (and where relevant certificates of reinsurance), in the English language, detailing the coverage and confirming the insurers’ (or as the case may be, the reinsurers’) agreement to the specified insurance
requirements of the Lease, must be provided to Lessor and the Lender prior to any expiry date which falls during the Lease Term. 

  

	14.7.	 Insurance for Indemnitees. The Insurances prescribed in this Section 14 will in each case include
and insure (to the extent of the risks covered by the policies) the Indemnitees. 

  
 16 

 

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

	14.8.	 Assignment of Rights by Lessor. If Lessor assigns all or any of its rights under the Lease or otherwise
disposes of any interest in the Engine to any other person, Lessee will, upon request, procure, or cause to be procured, that such person be added as loss payee and/or additional insured in the policies effected hereunder and enjoy the same rights
and insurance enjoyed by Lessor under such policies. 

  

	14.9.	 Currency. All proceeds of insurance pursuant to the Lease will be payable in United States Dollars.

  

	14.10.	 Grounding of Engine. If at any time any of the Insurances required pursuant to this Section 14 and
the Lease will cease to be in full force and effect, Lessee will forthwith take the Engine, or cause the Engine to be taken, off-wing and keep the Engine, or cause the Engine to be kept, off-wing until such time as such Insurances are in full force and effect again. 

  

	14.11.	 No Violation of Insurance Policies. Lessee will not use or permit the Engine to be used in any manner or
for any purpose, which is not covered by the insurance policies prescribed in this Section 14 after Delivery and during the entire Lease Term. 

  

	14.12.	 Reinsurance. In the event where Lessee is not insured by an insurance company recognized by the London /
New York markets, Lessee shall provide reinsurances. The terms of any such required reinsurances shall: 

  

	 	a.	 be on the same terms as the original insurances (and shall include the provisions set out in this
Section 14); 

  

	 	b.	 contain a “cut-through” clause in the following terms or
otherwise satisfactory to Lessor and any Lender: 

 “The reinsurers hereby agree that in the event of any claim
arising under the reinsurances in respect of a Total Loss or other claim where, as provided by the Lease, such claim is to be paid to the person named as sole loss payee under the primary insurances, the reinsurers shall in lieu of payment to the
reassured, its successors in interest and assigns, pay to the person named as sole loss payee under the primary insurances effected by the assured that portion of any loss due for which the reinsurers would otherwise be liable to pay the reassured
(subject to proof of loss), it being understood and agreed that any such payment by the reinsurers shall (to the extent of such payment) fully discharge and release the reinsurers from any and all further liability in connection therewith. Any
payment due under this Clause shall not contravene any law, statute or decree of the Government of Lessee’s jurisdiction”; and 
  

	 	c.	 provide in the case of any bankruptcy, liquidation, dissolution or similar proceedings of or affecting the
reassured that the reinsurers’ liability shall be to make such payments as would have fallen due under the relevant policy of reinsurance in accordance with the cut-through clause referred to above if the reassured had (immediately before such
bankruptcy, liquidation, dissolution or similar proceedings) discharged its obligations in full under the original insurance policies in respect of which the then relevant policy of reinsurance had been effected. 

  
 17 

	15.	 TITLE TO ENGINE 

 

	15.1.	 Title to the Engine. Lessee will not permit any lien, claim, mortgage or encumbrance
(“Liens”) except Permitted Liens (as defined below) to attach to the Engine. Lessee will indemnify Lessor for any damages suffered by Lessor, including costs and expenses incident thereto, occurring as a result of any such
Liens. Lessee’s rights hereunder will be solely those of a lessee and nothing contained herein is intended or will be interpreted as granting to Lessee any other right, title, or interest in or to the Engine, whether legal or equitable. Lessor
will affix a placard with details of the owner and any Lender to the Engine and Lessee will assure the placard remains attached to the Engine during the Lease Term. 

 

	15.2.	 Cape Town Convention. If the state in which Lessee is situated has, or at any time brings into force,
any legislative or other provisions giving effect to the Cape Town Convention, Lessee, at Lessee’s cost and expense, shall from time to time, do or cause to be done any and all acts and things which Lessor may require of Lessee (in the
reasonable opinion of Lessor) to ensure that Lessor and any Lender have the full benefit of the Cape Town Convention in connection with the Engine, including (but not limited to): 

 

	 	a.	 any matters connected with registering, perfecting, preserving and/or enhancing any international interest(s)
vested in Lessor or any Lender with respect to the Engine and constituted by the Lease and/or the Permitted Sublease; 

  

	 	b.	 entry in to agreements (subordination or otherwise) to protect and/or enhance and/or, improve the priority of
any international interest(s) referred to in the foregoing paragraph (a); and 

  

	 	c.	 excluding, in writing the application of any provisions of the Cape Town Convention that Lessor may deem
desirable in connection with the foregoing. 

 In this Lease the following terms have the following meanings:
“Cape Town Convention” means, collectively, the official English language text of (i) the Convention on International Interests in Mobile Equipment, adopted on November 16, 2001, at a diplomatic conference in
Cape Town, South Africa, (ii) the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment, adopted on November 16, 2001, at a diplomatic conference in Cape Town, South Africa,
(iii) all rules and regulations adopted pursuant thereto and as in effect in the United States and (iv) with respect to each of the foregoing described in clauses (i) through (iii), all amendments, supplements and revisions thereto as
in effect in the United States; “state” has the meaning set forth in the Cape Town Convention; and “state in which Lessee is situated” shall be constructed in accordance with the expression
“state in which the debtor is situated in” as set out in Article 4 of the Cape Town Convention. 

  
 18 

	15.3.	 Permitted Liens. “Permitted Lien” means in respect of the Engine:

  

	 	a.	 any encumbrance arising from Lessor’s own acts or defaults; 

 

	 	b.	 any encumbrance for Taxes, except for Taxes based upon the net income of Lessor, either not yet assessed or, if
assessed, not yet due and payable or being contested in good faith by appropriate proceedings (and for the payment of which adequate reserves have been set aside) so long as any such proceedings or the continued existence of such encumbrance do not
in Lessor’s reasonable opinion involve any likelihood of the sale, forfeiture or loss of, or of any interest in, the Engine; or 

  

	 	c.	 airport hangar keepers’, mechanics’, material men’s carriers’, employees’ or other
encumbrances arising in the ordinary course of business by statute or by operation of law in respect of obligations which are not overdue or which are being contested in good faith by appropriate proceedings (and for the payment of which adequate
reserves have been set aside) so long as any such proceedings or the continued existence of such encumbrance do not in Lessor’s reasonable opinion involve any likelihood of the sale, forfeiture or loss of, or of any interest in, the Engine.

  

	16.	 TAXES 

  

	16.1.	 Tax Indemnity. The charges set forth in the Lease do not include the amount of any Taxes which may be
imposed by any governmental authority or jurisdiction in connection with the lease of the Engine. Lessee will indemnify, defend, and hold Lessor and the Indemnitees harmless from and against any and all Taxes, including costs or expenses incurred in
connection therewith, except Taxes based on the net income of Lessor, which may be assessed against, chargeable to, or collectible from Lessee or Lessor by any taxing authority, foreign, federal, state, or local, and which are based upon, levied, or
assessed with respect to the lease of the Engine or the operation, possession, or use of such Engine while under lease. Upon demand of any governmental authority for payment of any such Tax or charge, Lessor will immediately notify Lessee and Lessee
will pay the same, provided, however, that in the event that Lessor is required to pay the same, Lessor will invoice Lessee for the amount of such tax or charge paid by it and Lessee will immediately reimburse Lessor for such amount. Lessee may
contest payment of any such Tax or charge or may request Lessor to pay the same under protest on Lessee’s behalf. 

  

	16.2.	 Lessor Tax Residence Certificate. On or before March 30 in each year during the Term, Lessor, upon
written request annually, will take steps to obtain as promptly as reasonably possible a certificate issued by the Internal Revenue Service of the United States Department of the Treasury (“IRS”) confirming Lessor’s tax residence in
the United States or, if one is not then available from the IRS, other equivalent official evidence of the status of Lessor as a resident of the United States under the applicable tax convention, or in the case of a transferee Lessor, official
evidence of the status of such transferee Lessor as a resident under the applicable tax convention; provided, however, in either case, Lessor shall not be responsible for delays arising from governmental processing beyond Lessor’s control.
However, Lessor will be relieved of the obligation imposed on it pursuant to this Article 16.2 in the event that a change in law, regulation or 

  
 19 

 administrative practice occurring after the date Lessor became the Lessor hereunder prevents
Lessor from delivering such certificate or other equivalent official evidence to Lessee; provided that a transferee Lessor shall also be relieved of such obligation to the extent that the transferor Lessor was so relieved at the time of the
transfer. In the event that Lessor or such transferee Lessor is not able to provide such certificate or other equivalent official evidence to Lessee due to events such as change of law, regulation or administrative practice, Lessor or such
transferee Lessor will provide Lessee with a letter explaining the reasons why it is prevented from delivering such certificate or other equivalent evidence to Lessee.  

 

	17.	 ASSIGNMENT AND SUBLEASING 

 

	17.1.	 Assignment. Lessor shall have the right to novate or assign the Lease, and Lessee, at Lessor’s
cost, shall execute such reasonable documents as are necessary to effectuate such novation or assignment, including, without limitation, an estoppel certificate, in the form customarily used for such transactions. The terms and conditions of any
such novation or assignment shall not be more onerous than the terms and conditions contained in this Agreement. 

  

	17.2.	 Sublease. Lessee shall not assign the Lease in whole or in part, nor shall Lessee sublease the Engine to
any person or otherwise relinquish possession thereof to anyone other than Lessor for any purpose other than with the prior written consent of Lessor in its sole and complete discretion. Any permitted sublease (“Permitted
Sublease”) shall be in form and substance acceptable to Lessor and shall expressly provide that the rights of any sublessee shall be expressly subject and subordinate to all the terms of this Lease and Lessor’s rights to
repossession pursuant to this Agreement. Lessee shall remain primarily liable hereunder for the performance of all of the terms of this Lease to the same extent as if such Permitted Sublease had not occurred. Lessee will guarantee performance of all
terms and conditions of this Lease on behalf of a permitted sublessee under a Permitted Sublease and will be responsible for any costs associated or incurred related to the performance of the Lease. No Permitted Sublease shall in any way discharge
or diminish any of Lessee’s obligations to Lessor hereunder or constitute a waiver of Lessor’s rights or remedies hereunder, and Lessor’s rights shall continue as if such Permitted Sublease had not occurred. Any Permitted Sublease
shall expressly prohibit any further sub-sublease or assignment or any other similar transfer of the Engine or rights thereto by the sublessee. Lessee shall provide to Lessor: (i) written notice of any
Permitted Sublease hereunder (such notice to be given not later than 10 Business Days prior to entering into any sublease); (ii) such evidence as Lessor may require to demonstrate that such airline is solvent at the time that such sublease is
entered into; (iii) a copy of the Permitted Sublease; and (iv) if Lessor so requests, an assignment of the Permitted Sublease to Lessor for security and a consent thereto from the Permitted Sublessee, in form and substance reasonably
satisfactory to Lessor. Lessee shall be responsible for the reasonable out-of–pocket legal fees and expenses incurred by the Lessor in connection with any Permitted Sublease subject to Lessor providing
Lessee with supporting documentation. 

  
 20 

	18.	 REDELIVERY OF THE ENGINE 

 

	18.1.	 Date of Redelivery. Lessee will return the Engine installed, on the same engine transportation stand (or
as otherwise agreed) as delivered to Lessee at Delivery, to Lessor at the Redelivery Location on the Lease End Date or on the date of other valid termination of the Lease in the condition required by the Lease and upon Lessor’s confirmation of
such return, Lessor shall evidence Lessor’s acceptance of such return of the engine, and any exceptions thereto, by executing and delivering to Lessee the Redelivery Acceptance Certificate. Unless an Event of Default, or an event with the
passage of time or the giving of notice would become an Event of Default, has occurred and is continuing, or unless this Lease shall have been terminated by Lessor pursuant to Section 19.1(b)((iv), upon Lessor’s execution and delivery to
Lessee of the Redelivery Acceptance Certificate, this Lease shall terminate with neither party hereto having any further liability to the other hereunder except or those obligations, liabilities and agreements under the Lease which specifically
survive the expiration or termination of this Lease or are otherwise reserved in accordance with the Redelivery Acceptance Certificate. The costs for shipping of the Engine to any other location than the designated Redelivery Location will be borne
by the Lessor. 

  

	18.2.	 Redelivery Inspection. Lessee will perform or cause to be performed at its own cost on the Engine
immediately prior to its return to Lessor: 

  

	 	a.	 a power assurance test run (test 05) at the thrust rating that the Engine will make power
(“MPA”) according to the applicable aircraft maintenance manual requirements, followed by 

  

	 	b.	 a full end of lease (“EOL”) inspection as required by the
end of lease inspection requirements detailed in Schedule 10, including an acceptable full video borescope inspection, with written report, of all accessible sections of the Engine within maintenance manual limitations, for continued time/reduced
inspections (except in the case of FOD, misuse, neglect, negligence or improper operation). Such borescope inspection shall be performed by Lessor’s representative with consideration or exception given for (i) the findings with respect to
the borescope inspection of the Engine provided by Lessor at Delivery and (ii) normal wear and tear during the Lease Term. 

The corresponding MPA and EOL inspection protocols shall be redelivered with the Engine. Lessee will provide Lessor with at least fourteen
(14) Business Days advance written notice of such scheduled Engine inspection and test, so that Lessor may have the opportunity to witness same. Should Lessee not inform Lessor in advance of the impending MPA and EOL inspection with at least
fourteen (14) days’ notice, and the Lessee elects to perform the scheduled MPA and EOL inspections without Lessor present, Lessor may at its sole discretion disregard the MPA and EOL inspection performed by Lessee and perform a test cell
run and corresponding EOL inspection at Lessor’s MRO facility at the cost and risk of Lessee. Further, if the MPA or EOL inspection is delayed more than two (2) days from the date that Lessee scheduled same with Lessor, then Lessee will
indemnify Lessor for all costs associated with such delay and reimburse Lessor on demand. In the event that the borescope inspection or the MPA or test cell run identifies any defect in the Engine or any item not being within the

  
 21 

 
manufacturer’s limits as stated in the relevant aircraft maintenance manual (“AMM”), such defect shall be repaired at Lessee’s sole cost and expense provided such
defect is not resulting from normal wear and tear. 
  

	18.3.	 Return Conditions. In addition to any other requirements of this Lease, upon return of the Engine to
Lessor, Lessee will ensure that: 

  

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

  

	 	b.	 the Engine is either (i) serviceable or (ii) unserviceable based on (x) being fully time expired
or (y) borescope findings beyond maintenance manual limits due to normal wear and tear,
*                                   
                                         
            
*                                 
                                         
       it is specifically recorded that any reduced inspection interval *            
                                         
                                         
                                         
                  per CFM or maintenance manual shall not be considered a cause to deem the Engine to be unserviceable; 

 

	 	c.	 in the event the Engine cannot sustain
*             pounds of thrust without exceeding the limits in the normal operating conditions (not related to FOD, misuse or abuse or Lessee
induced or other Operator Exceedance damage), the Lessor shall accept the Engine and repair or dispose of it as Lessor deems fit (in this case the Engine shall be deemed unserviceable and all clauses relating to a serviceable engine shall not apply,
however, Lessee shall comply with the MPA (only if it is safe to do so) and EOL inspections referred to in Section 18.2) if not otherwise agreed; 

  

	 	d.	 the Engine shall have installed thereon all Parts installed thereon on the Delivery Date or permitted
replacements thereof in accordance with the Lease and the Engine is in the same configuration and in an as good condition as at Delivery, normal wear and tear and normal rate of performance deterioration excepted; 

 

	 	e.	 the Engine, except for the parts/components listed in ATA chapter 71 or 72, is free of all deferred or
carry-over maintenance items, including pilot log book reports and defects requiring repetitive inspections and will not be “on watch” or have any reduced interval inspections; 

 

	 	f.	 the Engine has affixed a current, valid and effective EASA Form 1 with full return-to-service statement, if serviceable, at *             pounds of thrust; 

 

	 	g.	 with reference to the MPA and EOL inspection referred to in Section 18.2 and together with the
Engine’s historical and technical data and condition trend monitoring data for the Engine, Lessor is satisfied: 

  

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

  
 22 

 

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

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

 

	 	i.	 capping and plugging all openings of the Engine; 

 

	 	ii.	 preserving the Engine for three hundred sixty-five (365) days storage, according to the engine
preservation procedure of the AMM or the relevant EMM; 

  

	 	iii.	 completely covering the Engine with heat shrink wrap and the tarpaulin cover or bag (if provided) at Delivery;
and 

  

	 	iv.	 otherwise preparing the Engine for shipment in accordance with the manufacturer’s
specifications/recommendations. Any trucks used for shipment of the Engine will be equipped with air ride or air cushion suspension system. Lessee shall provide Lessor with photos of the Engine that show that it is loaded on a truck with air ride or
air cushion suspension or other appropriate equipment and provide evidence that the Engine is properly loaded and secured thereon. On any given shipment, such truck will be dedicated to the Engine belonging solely to Lessor; except that additional
items may be transported on such truck, provided that (a) the Engine can and will be off-loaded by Lessor at the Redelivery Location without disturbing any of the additional items and (b) Lessee or
its shipper will not handle or reposition any of the additional items on such truck either while the Engine is in transit or when it arrives at the Redelivery Location. 

 

	18.4.	 Redelivery Location. Lessee will return the Engine, installed on the same engine transportation stand
(or as otherwise agreed) as delivered to Lessee at Delivery, to Lessor at the Redelivery Location. 

  

	18.5.	 Non-Incident Statement. Upon redelivery, Lessee shall issue a Non-Incident Statement in the form set out in Schedule 4. 

  

	18.6.	 Lessee’s Continuing Obligations. In the event that the Engine is serviceable and Lessee does not
dispatch the Engine to Lessor for redelivery on the Lease End Date or other date of valid termination of the Lease, or Lessee does not redeliver the Engine in the condition required by the Lease for any reason (whether or not the reason is within
Lessee’s control): 

  

	 	a.	 All obligations of Lessee under the Lease shall remain in full force and effect until the return of the Engine
in the condition required by the Lease. This will not be considered a renewal of the Lease or extension of the Lease Term or waiver of any right of Lessor under the Lease. 

  
 23 

	 	b.	 Lessor may at its sole discretion: 

 

	 	i.	 remedy such defects and deficiencies and recover any reasonable costs so incurred from Lessee; and/or

  

	 	ii.	 continue the Lease Term and charge a default Lease Rate in the amount of
*                             percent (*      %) of the Lease Rate which was payable at the date starting from the 10th day after which redelivery would otherwise
have occurred divided by 30 (the “Default Lease Rate”) for each day the Engine is not dispatched to Lessor and/or until any defects and deficiencies associated with FOD, misuse or abuse or Lessee induced damage are remedied.

  

	18.7.	 Redelivery Reports. Upon redelivery of the Engine in accordance with the terms of the Lease, Lessee will
(i) perform the redelivery checks, tasks and inspections specified in Clause A of Schedule 8, (ii) deliver to Lessor the redelivery documents specified in Clause B of Schedule 8 and (iii) prepare, execute and deliver to Lessor the Engine
operational report and a redelivery checks and inspection report in the respective forms of Schedule 7 and Schedule 8. 

  

	18.8.	 Indemnities and Insurance. The indemnities and insurance requirements set forth in Sections 11 and 14,
respectively, will apply to Indemnitees and Lessor’s representatives during the return of the Engine, including the redelivery inspection. 

  

	19.	 TERMINATION AND ADDITIONAL ASSURANCES 

 

	19.1.	 Termination. 

  

	 	a.	 Any of the following shall constitute an event of default under this Lease (“Event of
Default”): 

  

	 	i.	 Lessee shall fail to make payment of any amounts due under this Lease on the date within fourteen
(14) days after the date when due; or 

  

	 	ii.	 Lessee shall fail to observe or perform any covenants or agreement as set forth in Sections 14, 17.2 or 18
hereof; or 

  

	 	iii.	 Lessee shall fail to perform or observe any other covenant, condition or agreement to be performed or observed
by it under this Lease, or in any agreement or certificate furnished to Lessor in connection herewith, and such failure shall continue unremedied for fifteen (15) days after written notice to Lessee (except in case of nonpayment of monies due
wherein no notice of such default will be required) by Lessor specifying such failure and demanding the same to be remedied, except for situations when conditions precedent are not satisfied because of events that are not under the Lessee’s
control, in which case, Lessor agrees to consider granting a longer grace period, acting reasonably, when the cause of such failure is not under Lessee’s control; or 

  
 24 

 

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

	

	 	iv.	 any representation or warranty of Lessee herein or in any document or certificate furnished to Lessor in
connection herewith fails to be correct in any material respect which failure continues uncured for fifteen(15) days after written notice thereof to Lessee; or 

 

	 	v.	 Lessee makes a general assignment for the benefit of creditors, or becomes the subject of voluntary bankruptcy
proceedings, or has a receiver or custodian or liquidator appointed for any of its assets, or ceases to conduct the whole or a substantial portion of its business in the manner in which such business was conducted on the date of this Lease, or an
involuntary petition in bankruptcy is filed against Lessee and not dismissed or stayed within sixty (60) days; or 

  

	 	vi.	 Lessee shall have breached any other agreement or obligation as between (i) Lessee or any affiliate of
Lessee, and (ii) Lessor or any affiliate of Lessor, whereupon such breach thereunder shall be deemed an Event of Default hereunder; or 

  

	 	vii.	 not sooner than thirty (30) days prior to the expiration date of any agent for service of process
appointment, Lessee has failed to renew such agent for service of process appointment and provide evidence satisfactory to Lessor that such appointment has been renewed or a new appointment has been made by such date or any such agent for service of
process appointment shall be terminated or cancelled and no substitute agent for service of process appointment acceptable to Lessor has been made. 

  

	 	b.	 Upon the occurrence of any Event of Default and at any time thereafter so long as the same shall be continuing,
Lessor may, at its option, declare this Lease to be in default and, at any time thereafter so long as Lessee shall not have remedied all outstanding Events of Default, Lessor may exercise one or more of the following remedies as Lessor shall in its
sole discretion elect, to the extent available and permitted by, and subject to compliance with any mandatory requirements of any applicable law then in effect: 

 

	 	(i)	 demand that Lessee, and Lessee shall upon such demand of Lessor and at Lessee’s expense, immediately
return the Engine to Lessor at such location as may be directed by Lessor, in the manner specified in such notice, and such return shall not be delayed for the purposes of complying with the return conditions specified in Section 18 hereof
(none of which conditions shall be deemed to affect Lessor’s possession of the Engine) or delayed by any other reason, nor shall such demand be deemed Lessor’s waiver of Lessee’s requirement to comply with Section 18 hereof;

  

	 	(ii)	 sell at private or public sale, as Lessor may determine, or hold, use, operate or lease to others the Engine as
Lessor in its sole discretion may determine, all free and clear of any rights of Lessee; 

  
 25 

	 	(iii)	 proceed by appropriate court action or actions, either at law or in equity, to enforce performance by Lessee of
the applicable covenants of this Lease and to recover damages for the breach thereof and to rescind this Lease; 

  

	 	(iv)	 terminate this Lease by written notice to Lessee and/or repossess the Engine; and 

 

	 	(v)	 exercise any other remedy available under applicable law. 

 

	 	c.	 In effecting any repossession, Lessor, its representatives and agents, to the extent permitted by applicable
law shall: (i) have the right to enter upon any premises where it reasonably believes any Engine to be located; (ii) not be liable, in conversion or otherwise, for the taking of any personal property of Lessee which is in or attached to
the Engine which is repossessed; provided, however, that Lessor shall return to Lessee all personal property of Lessee which was on the Engine at the time Lessor re-takes possession of the Engine;
(iii) not be liable or responsible, in any manner, for any inadvertent damage or injury to any of Lessee’s property in repossessing and holding the Engine, except for that caused by or in connection with Lessor’s willful misconduct;
and (iv) have the right to maintain possession of and dispose of the Engine on any premises owned by Lessee or under Lessee’s control. 

  

	 	d.	 If demanded by Lessor, Lessee, at its sole expense, shall assemble and make the Engine available at such
location as may be directed by Lessor. Lessee hereby agrees that, in the event of the return to or repossession by Lessor of the Engine, any rights in any warranty (express or implied) heretofore assigned to Lessee or otherwise held by Lessee shall
without further act, notice or writing be assigned or reassigned to Lessor, if assignable. Lessee shall be liable to Lessor for out-of-pocket expenses, disbursements,
costs and fees incurred in: (i) repossessing, storing, preserving, shipping, maintaining, repairing and refurbishing the Engine to the return condition required by Section 18 hereof; and (ii) preparing the Engine for sale or lease.
Lessor is hereby authorized and instructed, at its option, to make reasonable expenditures which Lessor, in its sole discretion, considers advisable to repair and restore the Engine to the return condition required by Section 18, all at
Lessee’s sole expense. 

  

	 	e.	 Whether or not Lessor shall have exercised, or shall thereafter at any time exercise, any of its rights
hereunder with respect to the Engine, on the date on which Lessor shall become entitled to repossession of the Engine (the “Damage Calculation Date”), all sums and all performances due under this Lease shall immediately
become due and payable and Lessee shall thereupon be obligated to pay to Lessor as damages for breach hereof an amount equal to the sum of: (1) the Lease Rate and all other amounts that became due and payable hereunder, but were unpaid, as of
the Damage Calculation Date; (2) all of the Lease Rate which would have accrued from the Damage Calculation Date through the Lease End Date which would have reasonably been expected to occur, calculated at the Default Lease Rate;); and
(3) such additional amount as shall be sufficient to place Lessor in the same economic position, on an after-tax basis, as Lessor would have 

  
 26 

	 	been in if Lessee had timely performed each of its obligations hereunder. In the event that Lessee fails to redeliver the Engine to Lessor following expiration or cancellation of the Lease Term, in lieu of the amount
specified in subsection (2) above, Lessee shall be obligated to pay Lessor an amount equal to the Agreed Value of the Engine. All of the foregoing damage amounts shall bear interest, to the extent permitted by applicable law, at the rate of
1.0% per month from the payment date specified pursuant to this Section 19.1 to the date of actual payment of such amount. 

  

	 	f.	 Whether or not Lessor shall have exercised, or shall thereafter at any time exercise, any of its rights
hereunder with respect to the Engine or Lessee upon the occurrence of an Event of Default, Lessee and Lessor hereby stipulate that Lessor shall be entitled to sequester the Engine and Lessee shall deliver the Engine into the custody of Lessor or its
designated agents for such purpose, at Lessee’s expense, upon receipt of a written demand from Lessor with respect thereto. 

  

	 	g.	 No remedy referred to in this Section 19.1 is intended to be exclusive, but, to the extent permissible
hereunder or under applicable law, each shall be cumulative and in addition to any other remedy referred to above or otherwise available to Lessor at law or in equity; and the exercise or beginning of exercise by Lessor of any one or more of such
remedies shall not preclude the simultaneous or later exercise by Lessor of any or all of such other remedies. No express or implied waiver by Lessor of any default or Event of Default shall in any way be, or be construed to be, a waiver of any
future or subsequent default or Event of Default.  

  

	20.	 NOTICES 

All notices or requests given in connection with this Lease will be given in writing and sent prepaid by certified mail, return receipt requested, by email or
facsimile transmission to the addresses listed below unless either Party notifies the other Party of a different address. 
 For
Lessor: 
 Contrail Aviation Support, LLC 

435 Investment Court 
 Verona,
Wisconsin 53593 
 United States of America 

Attention: President 
 Email:
joe@contrail.com 
 Telephone: +1 608 848-8100 

Facsimile: +1 608 848-8101 

For Lessee: 
  

							
	*	 		 	    	 	
				
	  
	 	  
	 	  
	 	  

				
		 		 		 	

  
 27 

 

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

	

           *                               
                                       
                                            
    
                                            
                                         
                                

               
                                         
                          

               
                                         
        

               
                                         
     
  

	21.	 RECORDING 

Lessor may record this Lease with the Department of Transportation, Federal Aviation Administration, FAA Engine Registry, Oklahoma City, Oklahoma and register
any international interest relating to the Engine, the Lease, or any Permitted Sublease with the International Registry established by the Cape Town Convention (the “International Registry”). Lessee shall assist Lessor with
all necessary filings and registrations to be made thereunder. Upon the termination of the Lease for any reason whatsoever, each of the Parties will execute and deliver to the other Party promptly such documents as the other Party may reasonably
request in order to file a termination of the Lease with the FAA and/or the discharge of any international interest registered with the International Registry. 
  

	22.	 BROKERS/FINDERS 

Lessor and Lessee each represent to the other that it has not involved third parties as brokers or finders with respect to this Lease, and each Party
indemnifies the other from liability for fees, commissions, or other intermediary’s claims arising as a result of actions of the indemnifying Party. 
  

	23.	 MISCELLANEOUS 

 

	23.1.	 Entire Agreement. This Lease contains the entire understanding of the Parties with respect to the lease
of the Engine and no warranties, representations or undertakings have been made by either Party except as expressly set forth in the Lease.  

  

	23.2.	 Amendments. The Lease may not be amended in whole or in part orally, but only by an express instrument
in writing signed by the Parties hereto. 

  

	23.3.	 Successors. The Lease will be binding upon and inure to the benefit of the respective permitted
successors and assigns of the Parties. 

  

	23.4.	 Counterparts. The Lease hereunder may be executed in counterparts. Such counterpart documents, when
taken together, will constitute one and the same instrument. A facsimile signature on any counterparts will be deemed an original for all purposes. The single fully-executed original of this Lease marked “Chattel Paper Original” on the
signature page hereof is the original for chattel paper purposes and all other executed counterparts are duplicates for chattel paper purposes. No security interest in this Lease may be perfected by the possession of any executed counterpart other
than the one marked “Chattel Paper Original” on the signature page hereof. 

  
 28 

 

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

	23.5.	 Survival of Terms. The terms contained in the Lease that, by their nature, continue after termination or
expiration thereof or redelivery of the Engine to Lessor will survive such termination, expiration, or redelivery and continue in full force and effect. 

  

	23.6.	 Remedies. The remedies afforded a non-breaching Party are
cumulative and in addition to all other rights in law, equity or otherwise. 

  

	23.7.	 Attorney Fees. The prevailing party in any litigation to enforce the terms of the Lease will be entitled
to recover its reasonable and actual attorney’s fees from the losing party. 

  

	23.8.	 Headings. All Sections, articles and Section headings and captions are purely for convenience and will
not affect the interpretation of the Lease. Any reference to a specific Section or article will be interpreted as a reference to such Section or article of the Lease. 

 

	23.9.	 Severability. Any provision of this Lease which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any such jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. 

  

	23.10.	 English Language. In the event that this Lease is translated into a language other than English for
purposes of registering or recording the same with the Aviation Authority or any other governmental entity, the English language version shall control. 

  

	23.11.	 Schedules. All Schedules attached hereto are incorporated herein by reference and are deemed to be a
part hereof. 

  

	23.12.	 Servicer. Lessor may delegate to any person or persons (the “Servicer”) all or
any of the rights, powers or discretions vested in it by this Lease or any of the other documents relating thereto, and any such delegation may be made upon such terms and conditions and subject to such regulations (including the power to sub-delegate) as Lessor in its absolute discretion deems fit. Upon notice to the Lessee of the appointment of such a Servicer, such Servicer may act as Lessor’s servicer for all matters related to this Lease
and the Engine, and Lessee agrees that it shall communicate with and deal with such Servicer with respect to all such matters as if the Servicer were the Lessor under this Lease. 

 

	24.	 GOVERNING LAW AND JURISDICTION 

 

	24.1.	 Governing Law. THIS LEASE SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK, NEW YORK, U.S.A. APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD FOR CONFLICT OF LAW PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 

  
 29 

	24.2.	 Consent to Jurisdiction. Each party hereto hereby irrevocably consents that any legal action or
proceeding against it or any of its assets with respect to this Lease may be brought in any jurisdiction where such party or any of its assets may be found, or in any court of the State of New York or any Federal court of the United States of
America located in New York, New York, located in the Borough of Manhattan, United States of America, as the other party may elect, and by execution and delivery of this Lease, each party hereto hereby irrevocably submits to and accepts with regard
to any such action or proceeding, for itself and in respect of its assets, generally and unconditionally, the jurisdiction of the aforesaid courts. 

  

	24.3.	 Jurisdiction and Forum. Each party hereto agrees that final judgment against such party in any action or
proceeding in connection with this Lease shall be conclusive and may be enforced in any other jurisdiction within or outside the United States of America by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence
of the facts determined therein. Each party hereby irrevocably waives, to the fullest extent permitted by Law, any objection which such party may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Lease brought in the State of New York, and hereby further irrevocably waives any claim that any such suit, action or proceeding brought in the State of New York has been brought in an inconvenient forum. To the extent that any
party hereto may in any jurisdiction in which proceedings may at any time be taken for the determination of any question arising under or for the enforcement of this Lease (including any interlocutory proceedings or the execution of any judgment or
award arising therefrom) be entitled to claim or otherwise be accorded for itself or its property, assets or revenues immunity from suit or attachment (whether in aid of execution, before judgment or otherwise) or other legal process, and to the
extent that in any such jurisdiction, there may be attributed to such party, or its property, assets or revenues such immunity (whether or not claimed), each party hereby irrevocably agrees not to claim and waives such immunity to the fullest extent
permitted by the Law of such jurisdiction. 

  

	24.4.	 Waiver of Jury Trial. THE LESSEE AND THE LESSOR HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING TO
WHICH THEY ARE BOTH PARTIES INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS LEASE, ANY OF THE OPERATIVE DOCUMENTS OR THE RELATIONSHIP
ESTABLISHED HEREUNDER OR THEREUNDER. 

  

	24.5.	 Process Agent. Without prejudice to any other mode of service, Lessee: 

 

	 	a.	 appoints and agrees to maintain Corporation Service Company located at 80 State Street, Albany, New York 12207,
United States of America as its agent for service of process relating to any proceedings before any court located in the borough of Manhattan, State of New York, United States of America in connection with the Lease (the “Process
Agent”); 

  

	 	b.	 agrees that failure by the Process Agent to notify Lessee of the process shall not invalidate the proceedings
concerned; and 

  
 30 

	 	c.	 consents to the service of process relating to any such proceedings by prepaid mailing, certified or
registered, of a copy of the process to the Process Agent at the address identified in clause (a) above or by prepaid mailing, certified or registered, of a copy of the process to Lessee at the address set forth in Section 21.

  

	25.	 REPRESENTATIONS AND WARRANTIES 

Lessee represents and warrants to Lessor with respect to the Lease as follows:  

 

	25.1.	 Status. Lessee is a company duly organized or incorporated and validly existing under the Laws of its
jurisdiction of organization or incorporation, has the power to own its assets and carry on its business as it is presently being conducted, and is the holder of all necessary air transportation licenses required in connection therewith and with the
use and operation of the Engine. 

  

	25.2.	 Power and Authority. Lessee has the power and authority to enter into and perform, and has taken all
necessary action to authorize the entry into, performance and delivery of, this Lease and the transactions contemplated by it. 

  

	25.3.	 Legal Validity. This Lease has been duly authorized, executed and delivered by Lessee, and constitutes a
legal, valid and binding obligation of Lessee, enforceable in accordance with its terms, except as may be stated in any of the qualifications to the legal opinion provided by Lessee to Lessor. 

 

	25.4.	 Non-Conflict. The entry into and performance by Lessee of, and
the transactions contemplated by, this Lease do not and shall not (i) conflict with any laws binding on Lessee; or (ii) conflict with the constitutional or other organizational documents of Lessee; or (iii) conflict with or result in
default under any agreement or instrument which is binding upon Lessee or any of its assets nor result in the creation of any security interest over the Engine. 

 

	25.5.	 Authorization. So far as concerns the obligations of Lessee, all authorizations, consents, registrations
and notifications required in connection with the entry into, performance, validity and enforceability of, this Lease and the transactions contemplated by this Lease, have been (or shall on or before the Delivery Date have been) obtained or effected
(as appropriate) and are (or shall on their being obtained or effected be) in full force and effect. 

  

	25.6.	 No Default. No Event of Default has occurred and is continuing or might result from the entry
into or performance of this Lease. 

  

	25.7.	 Perfection and Protection of Rights. 

 

	 	(i)	 Except as may be stated in any of the qualifications to the legal opinion provided by Lessee to Lessor, no
filing or recording of this Lease or of any other document and no further action, is or shall be necessary under the Laws of Lessee’s Country or any other jurisdiction in order to (A) perfect and protect the Lessor’s title to, and the
interest of Lessor in, the Engine, or (B) ensure the validity, effectiveness and enforceability of this Lease. 

  
 31 

	 	(ii)	 The rights and interests of the Lessor and any Lender in the Engine have been fully established, perfected and
protected under the Laws of Lessee’s Country. 

  

	25.8.	 No Immunity. 

  

	 	(i)	 Lessee is subject to civil commercial law with respect to its obligations under this Lease.

  

	 	(ii)	 Neither Lessee nor any of its assets is entitled to any right of immunity, and the entry into and performance
of this Lease by Lessee constitute private and commercial acts. 

  

	25.9.	 Suits, Material Adverse Change. No litigation, arbitration or administrative proceedings are pending or
to Lessee’s knowledge threatened against Lessee which, if adversely determined, could have a material adverse effect upon its financial condition or business or its ability to perform its obligations under this Lease, and Lessee is not in
default under any other agreement to which it is a party or to which it may be bound which would have a material adverse effect on its business, financial condition or its ability to perform under the Lease. 

Lessor represents and warrants to Lessee with respect to the Lease as follows: 
  

	25.10.	 Status. Lessor is a limited liability company duly organized and validly existing under the Laws of its
jurisdiction of organization and has the power to own its assets and carry on its business as it is presently being conducted. 

  

	25.11.	 Power and Authority. Lessor has the power and authority to enter into and perform, and has taken all
necessary action to authorize the entry into, performance and delivery of, this Lease and the transactions contemplated by it. 

  

	25.12.	 Legal Validity. This Lease has been duly authorized, executed and delivered by Lessor, and constitutes a
legal, valid and binding obligation of Lessor, enforceable in accordance with its terms. 

  

	25.13.	 Non-Conflict. The entry into and performance by Lessor of, and
the transactions contemplated by, this Lease do not and shall not (i) conflict with any laws binding on Lessor; or (ii) conflict with the constitutional or other organizational documents of Lessor; or (iii) conflict with or result in
default under any agreement or instrument which is binding upon Lessor or any of its assets. 

  
 32 

	26.	 CONFIDENTIALITY 

Each party hereto (except with the prior written consent of the other party) agrees (i) not to disclose details of this Lease to any third parties other
than its financial and legal advisers, its lenders and/or potential lenders and/or as required by governmental regulations; (ii) to maintain confidentiality of all information exchanged between the parties, including pricing information and
other proprietary knowledge, and not to use such for the benefit of any third party; and (iii) such confidentiality shall survive for a period of two (2) years following the expiration or earlier termination of this Lease. 

  
 33 

 IN WITNESS WHEREOF, Lessor and Lessee have each caused this Lease to be executed
under hand, in each case by their respective duly authorized representatives on the date first above written. 
  

			
	 CONTRAIL AVIATION SUPPORT, LLC,
 as
Lessor

		
	By:	 	/s/ Joseph G. Kuhn
	Name:	 	Joseph G. Kuhn
	Title:	 	CEO

  

			
	*                 ,
	 as Lessee

	 *

By:
	 	    
		
	 Name:
	 	 
		
	 Title:
	 	 

  
 Signature Page 

 

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

 SCHEDULE 1 

FORM OF DELIVERY RECEIPT 

Pursuant to the Engine Lease Agreement, dated as of January 10, 2018 (“Lease”) between CONTRAIL AVIATION SUPPORT,
LLC (“Lessor”)
and *                         (“Lessee”), this Delivery Receipt is delivered, on and as of the date set forth below, by Lessee to Lessor. Capitalized terms used but not defined herein shall have the respective meanings
set forth in the Lease. 
 Lessee hereby confirms to Lessor, its successors and assigns that: 

 

	1.	 on this ____ day of ________________ 2018, at the Delivery Location, it has received one CFM International,
Inc. model CFM56-7B26 aircraft engine, bearing manufacturer’s serial number *                  , together
with full QEC, installed on an engine transportation stand, with Technical Documents, including FAA 8130-3 certification dual release or EASA Form 1, pursuant to Section 3.2(a) of the Lease and

  

	2.	 the above equipment and the records required in connection therewith were received by Lessee at the Delivery
Location and the Engine, Technical Documents and other equipment have met the conditions of delivery and conform to the Lease in every respect. 

IN WITNESS WHEREOF, Lessee has caused this Delivery Receipt to be executed in its name, by its duly authorized officer(s) or
representative(s), pursuant to due corporate authority, all as of the date set forth in Section 1 above. 
  

			
	*                 ,
	 as Lessee

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  
 Schedule 1 

 

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

 SCHEDULE 2 

FORM OF DELIVERY ACCEPTANCE CERTIFICATE 

Pursuant to the Engine Lease Agreement, dated as of January 10, 2018 (“Lease”) between CONTRAIL AVIATION SUPPORT, LLC
(“Lessor”) and
*                         (“Lessee”), this Delivery Acceptance Certificate is delivered, on and as of the date set forth below, by Lessee to Lessor. Capitalized terms used but not defined herein shall have the
respective meanings set forth in the Lease. 
  

	1.	 Lessee hereby confirms to Lessor, its successors and assigns, that on the [___] day of [_____________], 2018
(the “Delivery Date”), at the Delivery Location, it received possession of the following: 

  

	 	(a)	 One CFM International, Inc. model CFM56-7B26 aircraft engine, bearing manufacturer’s serial number *                 , together with full QEC, and with FAA 8130-3 certification and
EASA Form 1. 

  

			
	 Thrust Rating:
	  	______ lbs.
		
	 Time since new (TSN):
	  	______
		
	 Cycles since new (CSN):
	  	______
		
	 Time since last Shop Visit:
	  	______
		
	 Cycles since last Shop Visit:
	  	______
		
	 Cycles remaining:
	  	______

  

	 	(b)	 The Engine was fitted on the following engine transportation stand: 

Stand Base S/N: ______
                            Stand Cradle S/N: ______ 

 

	 	(c)	 List of Technical Documents received: 

 

	 	(i)	 A valid and current Federal Aviation Administration (FAA) or European Aviation Safety Agency (EASA) approved
return to service maintenance release tag. 

  

	 	(ii)	 LLP status. 

  

	 	(iii)	 Airworthiness Directive status and Service Bulletin Status. 

 

	 	(iv)	 Latest Engine performance trend monitoring data (if available). 

 

	 	(v)	 Results of the most recently performed maximum power assurance (MPA) run or test cell run (TCR) and borescope
inspection video recording and 

  
 Schedule 2 

 

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

	 	report. 

  

	 	(vi)	 Current hours and cycles report. 

 

	 	(vii)	 Accessory and Missing Parts List. 

 

	3.	 Lessee warrants and confirms that: 

 

	 	(a)	 the execution by Lessee and delivery of this Delivery Acceptance Certificate to Lessor constitutes the full and
unconditional acceptance of the Engine in its “AS IS, WHERE IS” and “WITH ALL FAULTS” condition by Lessee for all purposes of the Lease; 

  

	 	(b)	 the Engine and the Technical Documents have been delivered to and are duly accepted by Lessee as of the
Delivery Date and are to Lessee’s full satisfaction and in accordance and subject to the provisions of the Lease; 

  

	 	(c)	 subject to Section 3.2 of the Lease, Lessee’s duly appointed and authorized technical experts have
inspected the Engine and the Technical Documents to ensure that the Engine conforms to Lessee’s requirements; 

  

	 	(d)	 the Engine is insured in accordance with the terms of the Lease; and 

 

	 	(e)	 all representations and warranties made by Lessee pursuant to the Lease remain in full force and effect and, if
made on this date, would be true and correct in all respects. 

 [Signature page follows] 

  
 Schedule 2 

 IN WITNESS WHEREOF, Lessee has caused this Delivery Acceptance Certificate
to be executed in its name, by its duly authorized officer(s) or representative(s), pursuant to due corporate authority, all as of the date set forth in Section 1 above. 

 

			
	*                 ,
	 as Lessee

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  
 Schedule 2 

 

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

 SCHEDULE 3 

FORM OF MONTHLY UTILIZATION REPORT 

Telefax to
                                         
    or email to                                  

This report must be completed by the Lessee for each calendar month of operation of the Engine before the fifth
(5th ) business day of the subsequent month. 
 REPORT
FOR MONTH 
 [__________], 201_ 

 

			
	Aircraft Type:	  	[__________]
	Aircraft Serial Number:	  	[__________]
	Engine Type:	  	CFM International, Inc. model CFM56-7B26
	Engine Serial Number:	  	*                 

 Engine Installation Data 

 

			
	 Date engine installed
	 	 
	
Engine TSN at installation
	 	 
	
Engine CSN at installation
	 	 
	
Aircraft registration
	 	 
	
Aircraft serial number
	 	 
	
Aircraft owner
	 	 
	
Aircraft TSN at installation
	 	 
	
Aircraft CSN at installation
	 	 
	
Present Position installed
	 	 

Engine Operation 
  

			
	 EFH operated this month
	 	 
	 EFC operated this month
	 	 
	 Engine TSN
	 	 
	 Engine CSN
	 	 
	 Engine thrust rating during operation
	 	 

  

			
	*                 ,
	 as Lessee

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  
 Schedule 3 

 

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

 SCHEDULE 4 

FORM OF NON-INCIDENT STATEMENT 

(Please use Company Letterhead) 

NON-INCIDENT STATEMENT 

This Non-Incident Statement is to certify that the CFM International, Inc. model CFM56-7B26 engine, bearing
manufacturer’s serial number *                 , together with all accessories and associated components (collectively, the “Engine”), was operated by
*                         (the “Operator”). 
 This Non-Incident Statement
is provided to Contrail Aviation Support, LLC (“Lessor”) pursuant to that certain Engine Lease Agreement, dated as of January 10, 2018, between Contrail Aviation Support, LLC and *                 , as lessee (the
“Lease”). Capitalized terms used but not defined herein shall have the respective meanings set forth in the Lease. 
 During
the period of Operator’s operation of the Engine, the Engine was not involved in any accident, incident, or subjected to severe impact, stress, heat or fire and it was not operated by governmental or military entities, nor have any parts of the
Engine which have been installed during such period of Operator’s operation of the Engine been acquired from any government, military or unapproved source. The Engine has not been immersed in salt water or otherwise exposed to corrosive agents
outside normal operation during such period of Operator’s operation of the Engine. 
 Lease Commencement Engine Total Time/ Total
Cycles:     [__________] 
 Lease Termination Engine Total Time/Total
Cycles:             [__________] 
 Dated this [___] day of [__________], 201_. 

 

			
	*                 ,
	 as Operator

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  
 Schedule 4 

 

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

 SCHEDULE 5 

FINANCIAL TERMS 
 [NOTE: THE
TERMS OF THIS SCHEDULE 5 ARE CONFIDENTIAL AND CONTAIN COMMERCIALLY SENSITIVE INFORMATION; THIS SCHEDULE 5 MUST BE REMOVED FROM ANY PUBLIC FILING OF THIS LEASE] 
  

	1.	 Agreed Value.
US$*                 

  

	2.	 Minimum Liability Amount.
US$*                     or any higher amount as may be required by law wherever the aircraft is
operating. 

  

	3.	 Deductible Limit.
US$*            . 

  

	4.	 Lease Rate. Lessee will pay to Lessor throughout the Lease Term rental (the “Lease
Rate”) (i) in the amount of US$*             commencing on the Lease Commencement Date and, thereafter, on each monthly
anniversary of the Rent Commencement Date up to the twelfth monthly anniversary of the Commencement Date; provided, however, the Lease Rate for the second Rental Period only shall be
US$*            , (ii)
US$*             per month commencing on the thirteenth monthly anniversary of the Commencement Date and thereafter on each monthly anniversary
of the Commencement Date up to the twenty fourth monthly anniversary of the Commencement Date and (iii) US$*             per month
commencing on the twenty fifth monthly anniversary of the Commencement Date and thereafter on each monthly anniversary of the Commencement Date up to the thirty sixth monthly anniversary of the Commencement Date (the “Lease Rate Due
Date”) continuing until the return of the Engine in accordance with the terms of the Lease. Such Lease Rate shall be payable monthly in advance with respect to the period commencing on the Rent Commencement Date and ending on the date
prior to the monthly anniversary of the Rent Commencement Date and, thereafter, commencing on the monthly anniversary of the Rent Commencement Date and ending on the date prior to the following monthly anniversary of the Rent Commencement Date
during the Lease Term (each a “Rental Period”). In the event that the Lease End Date is attributable to an Unserviceable Event, Lessee shall give to Lessor written notice of such Unserviceable Event and Lessee shall not be
required to pay Lessor the Lease Rate for a period of twenty (20) calendar days commencing on the date of such notice; provided, however, if Lessee fails to return the Engine to Lessor at the Redelivery Location in the condition required by the
Lease within such twenty (20) day period, Lessee shall pay the Lease Rate divided by 30 days for each day after such twenty (20) day period that such failure continues. 

 

	5.	 Deposit. Lessee shall pay Lessor a security deposit of
US$*             (the “Deposit”) prior to Lessor delivering the Engine to Lessee at the Delivery Location. The Deposit
shall be held by Lessor as security for the timely performance by Lessee of all of Lessee’s obligations under the Lease. The Deposit may be commingled with other funds of Lessor

  
 Schedule 5 

 

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

	 	
and shall be released without interest no later than two business days after Lessee has redelivered the Engine in accordance with the terms of the Lease, provided Lessee has performed all its
obligations under the Lease and no Event of Default has occurred and is continuing. If Lessee fails to comply with any provision of the Lease or any other agreement between Lessor and Lessee, or any Event of Default shall have occurred and is
continuing, then in addition to all rights and remedies accorded to Lessor elsewhere in the Lease and applicable law, Lessor may immediately or at any time thereafter, without prior notice to Lessee, apply all or part of Deposit towards the payment
or discharge of any matured obligation owed by Lessee under the Lease or any other agreement between Lessor and Lessee, in such order as Lessor sees fit (without such application constituting a cure of such default), and Lessee shall, following a
demand in writing from Lessor, immediately restore Deposit to the level at which it stood immediately prior to such exercise. 

  

	6.	 Supplemental Rent. 

 

	 	(a)	 Lessee shall make payments to Lessor in respect of Supplemental Rent in accordance with Section 7(b) below
not later than ten (10) days after the last day of each calendar month during the Lease Term (the “Supplemental Rent Due Date”); provided that Lessee’s final payment in respect of Supplemental Rent shall be made on the
Lease End Date. 

  

	 	(b)	 On each Supplemental Rent Due Date, Lessee shall pay Lessor Supplemental Rent in accordance with the following
rates which will be charged for each Engine Flight Hour accumulated on the Engine for the preceding month based on Lessee’s actual monthly average Engine Flight Hour to Engine Flight Cycle ratio for the preceding month. 

 

			
	 Hours Per Flight Cycle
	 	 US$ per Engine Flight Hour

	 1.30 – 1.61
	 	$*        
	 1.62 – 1.86
	 	$*        
	 1.87 – 2.11
	 	$*        
	 2.12 – 2.36
	 	$*        
	 2.37 – 2.61
	 	$*        
	 2.62 – 2.86
	 	$*        
	 2.87 – 3.12
	 	$*        
	 > 3.12
	 	$*        

  
 Schedule 5 

 

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

 The rates above are calculated at *             lbs. thrust and are subject to (i) annual escalation at a
rate of *  % per annum effective each January 1 during the Lease Term and (ii) review every *             (*  ) calendar months during the Lease Term to determine if the Engine is operated at an average derate > 10%. In the event that the Engine is operated during such period at an average derate <
10%, Lessee shall pay Lessor Supplemental Rent at an increased rate based on the following table: 
  

					
		 	
Average Derate                
    
	  	Multiplication Factor of Existing Supplemental Rent Rate
		 	 0% to 5%

5% to 10%

10% and above
	  	 *        

*        

*        

 and the additional amount of Lessor Supplemental Rent payable by Lessee to Lessor with respect to such *             (*  ) month period shall be paid to Lessor by Lessee within fifteen (15) days after the end of such *             (*  ) month period. If the Engine is operated at a different thrust level or if the Engine is not operating in an assumed ICAO
operating environment area 1, Lessor reserves the right to charge different rates for that month. 
 In addition, on each
Supplemental Rent Due Date, Lessee shall pay Lessor Supplemental Rent in accordance with a rate per Engine Flight Cycle to be calculated based on the OEM published cost of a complete set of CFM 56-7B LLPs,
which rate shall be adjusted annually on January 1 of each year during the Lease Term, for each Engine Flight Cycle accumulated on the Engine for the preceding month. 
  

	7.	 Payment Mode. All payments of Lease Fees will be made by bank transfer of immediately available funds in
United States Dollars to the account of Lessor at: 

  

					
		 	Bank:	  	Old National Bank
		 		  	1 Main Street
		 		  	Evansville, Indiana 47708
		 		  	United States of America
		 	ABA No.:	  	086300012
		 	Account:	  	Contrail Aviation Support, LLC
		 	Account No.:	  	133788963
		 	SWIFT Code:	  	OLNAUS44
		 	Ref:	  	ESN *            

  

	8.	 Interest. If any amount payable by Lessee to Lessor under the Lease is not paid when due, Lessee shall
pay Lessor interest on the late balance from the due date until paid in full at the lower of (i) the rate of *         percent (*    %) per month and (ii) the highest rate permitted by Law. 

  
 Schedule 5 

 

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

 SCHEDULE 6 

FORM OF ACKNOWLEDGEMENT OF ENGINE OWNERSHIP 

A SEPARATE ONE TO BE SIGNED BY EACH OWNER, LESSOR, MORTGAGEE AND 

SECURED PARTY OF THE AIRFRAME ON WHICH THE ENGINE IS INSTALLED 

Date: [__________] 
 Re: [__________] 

Reference is made to the Engine Lease Agreement, dated as of January 10, 2018 (as at any time amended or supplemented, the
“Lease”), by and between CONTRAIL AVIATION SUPPORT, LLC (“Lessor”) and
*                   
(“Lessee”) pursuant to which the Lessor has agreed to lease to the Lessee one CFM International, Inc. model CFM56-7B26 engine, bearing manufacturer’s serial number *            , with full QEC (the “Engine”), on the
terms and conditions set forth in the Lease. 
 The undersigned is the [__________] [list those applicable to you:
owner/lessor/mortgagee/secured party] of the airframe (the “Airframe”) on which the Engine is installed. The undersigned understands that under the laws of the country where the airframe is registered
(“Registration Country”), the laws of the country where the Lessee is certificated (“Certification Country”), and laws of other countries, (i) the mortgagee or owner of an airframe may be deemed
to have certain rights to deal with any engine installed on such airframe in order to enforce its rights as mortgagee or owner of such airframe, (ii) liens and encumbrances on an airframe may attach and extend to engines installed on such
airframe, and/or (iii) engines installed on an airframe may not be subject to any liens and encumbrances other than those to which such airframe is subject. The undersigned understands that the Engine is owned by the Lessor [to be added if
lender involved: and is subject to a first priority security interest in favor of [__________] (the “Lender”)]. 

The undersigned hereby agrees and acknowledges that, notwithstanding any provision to the contrary of the laws of the Registration Country,
the Certification Country or any other law or any agreement including, without limitation, any conditional sales, security or lease agreement with the Lessee, the installation of the Engine on the Airframe shall not affect title to or liens on the
Engine. The undersigned agrees that the Lessor is and shall continue to be the owner of the Engine [insert if applicable: and the Engine is and shall continue to be subject to the liens of the Lender]. The undersigned covenants and agrees
that it shall not assert, and hereby waives, any claim against the Lessor [insert if applicable: or Lender] in respect of any right, title or interest in the Engine which is inconsistent with the agreements in this instrument. The undersigned
covenants and agrees that it shall not seek to enforce any rights against the Engine under any agreement as a result of the Engine being installed on the Airframe. The undersigned hereby disclaims and waives any ownership interest in the Engine and
any security interest in the Engine. 

  
 Schedule 6 

 

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

 This Acknowledgment is entered into by the undersigned for the benefit of the Lessor
[insert if applicable: and Lender, who shall be a third party beneficiary]. 
 This Acknowledgment shall in all respects be governed
by, and construed in accordance with, the laws of the State of New York, United States of America, including all matters of construction, validity and performance. 

This Acknowledgment is duly signed and dated as of [__________], 201_. 

 

			
	[__________],
	a [__________] corporation
		
	        By:	 	 
		
	        Name:	 	 
		
	        Title:	 	 

  

			
	AS THE	 	 
		 	[OWNER, LESSOR, MORTGAGEE, OR SECURED PARTY]

  
 Schedule 6 

 SCHEDULE 7 

FORM OF ENGINE OPERATIONAL REPORT 

(Please use Company Letterhead) 

This report must be completed by the operator of the Engine at the time of redelivery or after any Engine removal and certified by its Quality Assurance
Manager or equivalent. 
  

							
	Operator:	  	*                   	  		  	
				
	Engine serial number:	  	*              	  		  	

  

							
		 	 Installation Details:
	  		 	 Removal Details:

	 Date:
	 	 	  		 	 
	 Aircraft registration & S/N:
	 	 	  		 	 
	 Engine position:
	 	 	  		 	 
	 Aircraft total hours:
	 	 	  		 	 
	 Aircraft total cycles:
	 	 	  		 	 
	 Engine total hours:
	 	 	  		 	 
	 Engine total cycles:
	 	 	  		 	 

  

									
	 Hours run since installation:
	  	 	  		  		  	

  

									
	 Cycles run since installation:
	  	 	  		  		  	

 (Note: If Engine was installed during operation on various aircraft, a separate list must be completed noting hours and cycles
for each installation/aircraft). 
  

			
	Observations:	  	 
	
	 
	
	 

 This is to certify that Engine type CFM56-7B26 bearing S/N
*               has been operated at a thrust of 26,300 lbs.
and maintained in accordance with the Aircraft Maintenance Manual and any other relevant practices and procedures. Further, no deviations from the manuals and procedures have been accomplished/carried out. 

 

	(i)	 List AD’s and SB’s accomplished during operation period. (If no AD or SB has been accomplished then
record “no AD/SB accomplished during operation period”). 

  

	 	
                       
                                         
                                         
                                         
                       

  
 Schedule 7 

 

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

	 	
                       
                                         
                                         
                                         
                       

  

	(ii)	 List oil type used and consumption rate (including at least 3 month of trend data). 

 

	 	
                       
                                         
                                         
                                         
                       

  

	(iii)	 List any abnormal engine occurrence, or limitations having been reached or exceeded during the term of
operation. (If there were none please note that there were none).  

  

	 	
                       
                                         
                                         
                                       

  

	 	
                       
                                         
                                         
                                       

  

	(iv)	 List any major repairs or alterations accomplished during the term of operation. (If there were none
please note that were none). 

  

	 	
                       
                                         
                                         
                                       

  

	 	
                       
                                         
                                         
                                       

  

	(v)	 Confirm that no PMA/non – OEM material(s), or material(s) containing
non-OEM repairs have been installed onto the Engine during the term of the operation. 

  

	 	
                       
                                         
                                         
                                       

  

	(vi)	 State if any component(s) or parts that were originally delivered/installed will not be returned with the
Engine with the reason for removal. (If there were none please note that there were none). 

  

	 	NOTE:	 If yes, provide separate list with the components installed as replacement(s). The following is required for
component(s) which have been replaced by Lessee – FAA 8130-3 and EASA form one release certificate; TSO/CSO or TSR/CSR, date of installation, Engine TSN/CSN at installation of component/part and
component/part Non-incident statement on ATA 106 form. 

  

	 	
                       
                                         
                                         
                                       

  

	 	
                       
                                         
                                         
                                       

  

	(vii)	 State if any deferred items have been noted during the term of the operation. (If there were none please
note that there were none): 

  

	 	
                       
                                         
                                         
                                       

  

	 	
                       
                                         
                                         
                                       

  

	(viii)	 Confirm that there are no Open Maintenance items, Deferred Defects, MMEL items and/or Carry Forward items
Outstanding on the Engine and its QEC Kit. 

  

	 	 	
                       
                                         
                                         
                                         
               

  

	 	 	
                       
                                         
                                         
                                         
               

  
 Schedule 7 

	(ix)	 State if the Engine has experienced any EGT or RPM exceedance. (If there were none please note that
there were none). 

  

	 	
                       
                                         
                                         
                                       

  

	 	
                       
                                         
                                         
                                       

  

	(x)	 Confirm the Fuel Type Used during the term of operation. 

 

	 	
                       
                                         
                                         
                                       

  

	 	
                       
                                         
                                         
                                       

  

	(xi)	 Confirm that the Engine has not been operated with fuels or with fuel additives sourced from the C.I.S.

  

	 	
                       
                                         
                                         
                                       

  

	 	
                       
                                         
                                         
                                       

  

	(xii)	 Confirm that the Engine fuel was not contaminated with Fatty Acid Methyl Ester (FAME). If the Engine was
contaminated, advise to the amount and corrective action. 

  

	 	
                       
                                         
                                         
                                       

  

	 	
                       
                                         
                                         
                                       

  

	(xiii)	 Confirm that no LLP’s have been replaced. 

 

	 	
                       
                                         
                                         
                                       

  

	(xiv)	 Confirm that the Engine has been properly stored (if applicable) in accordance with the AMM/Engine Manual.

  

	 	
                       
                                         
                                         
                                       

  

	(xv)	 Confirm that the Engine has been properly transported in accordance with AMM/Engine Manual during entire lease.
(Provide separately photos evidencing engine being properly secured onto air-ride equipment.) 

  

	 	
                       
                                         
                                         
                                       

  

	(xvi)	 Confirm that the Engine has been returned/placed in the ‘as delivered stand’ and the original Engine
cover if delivered with the engine. 

  

	 	 Stand Base
P/N                                  Stand Base
S/N                              

 

	 	 Stand Cradle
P/N                                  Stand Cradle
S/N                              

 

	 	
Note:                      
                                         
           

  

	(xvii)	 Confirm that the Engine fuel system has been completely emptied of fuel as per the special provision A70 in the
IATA Dangerous Goods Regulation and therefore is not subject to IATA Dangerous Goods Regulations. 

  

	 	
                       
                                         
                                         
                                         
                       

  
 Schedule 7 

	(xviii)	 Confirm ETOPS compliance if applicable. 

 

	 	
                       
                                         
                                         
                                       

  

	(xix)	 Provide date of last fan blade lubrication and next due compliance date. 

 

	 	
                       
                                         
                                         
                                       

  

	(xx)	 Provide date(s) for engine C-check tasks performed and next due
compliance date (MPD task compliance status) 

  

	 	
                       
                                         
                                         
                                       

  

			
	 Date/Signed:
	 	 
		
	 Print Name:
	 	 
		
	 Title:
	 	 

  
 Schedule 7 

 SCHEDULE 8 

FORM OF ENGINE REDELIVERY CHECKS & INSPECTIONS REPORT 

This report must be completed by the operator of the Engine at the time of redelivery and certified by its Engineering officer. 

 

					
	Operator:	  	*               	  	
			
	Engine serial number:                        	  	*             	  	
		
	Removal details at Engine Redelivery:	  	
			
	Date:	  	 	  	
			
	Aircraft registration & S/N:	  	 	  	
			
	Engine position:	  	 	  	
			
	Aircraft total hours:	  	 	  	
			
	Aircraft total cycles:	  	 	  	
			
	Engine total hours:	  	 	  	
			
	Engine total cycles:	  	 	  	

 CLAUSE A: REDELIVERY CHECKS REPORT (APPLICABLE ONLY FOR ENGINE REDELIVERY) 

The Lessee hereby confirms to Lessor that the following redelivery checks and inspections have been completed satisfactorily in accordance with the return
conditions of the Lease and that the Engine has not operated since completion of these checks: 
  

					
	(tick with ✓ to confirm)	  	YES	  	NO
			
	*                                
      	  	*    	  	*    
			
	*                                
                                    	  	*    	  	*    
			
	*                                
                        	  	*    	  	*    
			
	*                    	  	*    	  	*    
			
	*                                
                                         
               	  	*    	  	*    
			
	*                                
                        	  	*    	  	*    

 Comments on findings on any of the above checks & inspections: 

 
  
  

 

  
 Schedule 8 

 

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

	
	 
	
	 
	
	 

 CLAUSE B: REDELIVERY DOCUMENTS REPORT (APPLICABLE ONLY FOR ENGINE REDELIVERY) 

The Lessee hereby confirms that the following redelivery documents have been completed and have been redelivered to Lessor:  

 

					
	(tick with ✓ to confirm)	  	        YES        	  	        NO        
			
	*                                
                                         
                                         
                       	  	*     	  	     *
			
	*                                
                                         
                                         
                       	  	*     	  	*     
			
	*                                
                                     	  	*     	  	*     
			
	*                                
                                 	  	*     	  	*     
			
	*                                
                                         
                                         
                                         
                              	  	*     	  	*     
			
	*                                
                                         
                                         
                                         
                       	  	*     	  	*     
			
	*                                
                                         
                                         
                                         
                              	  	*     	  	*     
			
	*                                
                                         
                                        
	  	*     	  	*     
			
	*                                
                                         
                              	  	*     	  	*     
			
	*                                
                                         
                                         
                                         
                              	  	*     	  	*     
			
	*                                
                                         
                                         
         	  	*     	  	*     
			
	*                                
                                         
                                         
   	  	*     	  	*     
			
	*                                
                                         
                                         
                                 	  		  	
			
	*                                
                                         
             	  	*     	  	*     
			
	*                                
                                         
                                         
                                         
                	  		  	*     
	        *     	  		  	
			
	*                                
                                         
      	  	*     	  	*     
			
	*                                
                                        
	  		  	*     
	        *     	  		  	
			
	*                                
                                         
                                         
                                         
      	  	*     	  	*     
			
	*                                
                                         
                                         
                                        
	  	*     	  	*     
			
	*                                
                                        
	  	*     	  	*     
			
	*                                
                                         
                                         
                                         
                	  	*     	  	*     
			
	        *                        
                                         
                                         
                                         
	  		  	
			
	*                                
                                        
	  	*     	  	*     
			
	*                                
                                         
                                         
                                         
                	  	*     	  	*     
			
	        *                        
                                         
                                         
                                         
	  		  	

  
 Schedule 8 

 

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

					
			
	      *                          
              	  		  	
			
	*                                
                                         
                                         
                                         
 	  	*    	  	*    
			
	      *                          
                                         
                                         
                                    	  		  	
			
	      *                          
                                         
     	  		  	
			
	*                                
                                         
                           	  	*    	  	*    
			
	*     *                   
                     	  	*    	  	*    
			
	*                                
                    	  	*    	  	*    

 Comment on any of the above redelivery documents: 
  

 
  

 
  

 
  

 
  

 
  

					
	Lessee:                        
	 	 	  	
			
	Date	 	 	  	
			
	Signed:	 	 	  	
			
	Name:	 	 	  	 (please print)

			
	Title:	 	 	  	

  
 Schedule 8 

 

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

 SCHEDULE 9 

FORM OF LEASE TERMINATION AGREEMENT 

THIS LEASE TERMINATION AGREEMENT (this “Termination Agreement”) is made and entered into as of
                             , 201    , between CONTRAIL AVIATION
SUPPORT, LLC, a limited liability company organized and existing under the laws of the State of North Carolina, United States of America (the “Lessor”), and
*                     , a company
organized and existing under the laws of *               (the “Lessee”). 
 W I T N E S S E T H: 

WHEREAS, the Lessor and the Lessee are parties to that certain Engine Lease Agreement, as more particularly described in Annex 1 attached
hereto (the “Lease”), with respect to that certain CFM International, Inc. model CFM56-7B26 aircraft engine, bearing manufacturer’s serial
number *               and related records, together with
full QEC and engine transportation stand (collectively, the “Engine”); and 
 WHEREAS, the Lessor and the
Lessee desire to terminate the Lease as provided herein. 
 NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Lessor and the Lessee agree as follows: 
 1. Except as
otherwise defined herein, capitalized terms used herein shall have the meanings set forth in the Lease. 
 2. The Lease is hereby terminated
effective as of the date set forth on the Termination Notice to Lessee (the “Termination Date”). A copy of such Termination Notice is attached hereto and made part hereof. 

3. Effective as of the Termination Date, the Engine is hereby released from all of the terms and conditions of the Lease; provided that the
provisions of the Lease that, by their respective terms, are to survive the termination or expiration of the Lease shall survive the termination of the Lease to the extent required thereby for their full observance and performance. 

4. This Termination Agreement may be executed in counterparts, each of which when executed and delivered shall be deemed an original and all
together shall constitute one and the same instrument. 
 [Signature page follows] 

  
 Schedule 9 

 

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

 IN WITNESS WHEREOF, the parties hereto have caused this Termination Agreement to be duly
executed as of the date first above written. 
  

			
	 CONTRAIL AVIATION SUPPORT, LLC, as
Lessor

 
			
		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

 
			
	
	  
 *                     ,

as Lessee

 
			
		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  
 Schedule 9 

 

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

 Annex I 

to Lease Termination 

Description of Lease 
 Engine Lease
Agreement, dated as of January 10, 2018, between CONTRAIL AVIATION SUPPORT, LLC (“Lessor”) and
*                    
 (“Lessee”) which was recorded by the Federal Aviation Administration on [_____________], 2018 and assigned Conveyance No. [_____]. 

[Note: To be revised accordingly when terminated.] 

  
 Schedule 9 

 

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

 SCHEDULE 10 

END OF LEASE INSPECTION REQUIREMENTS 
  

							
	 ITEM
	  	 TASK DESCRIPTION
	  	 REMARKS
	  	 COMPLIED

WITH

				
	1	  	ENGINE DOCUMENTATION CHECK	  		  	
				
	1.1	  	CHECK ENGINE IS CLEAR OF ALL LOG BOOKS AND DEFFERED DEFECTS	  		  	
				
	1.2	  	CHECK RECORDED CFDS FAULTS FOR ATA CHAPTER 70-80 FAULTS	  		  	
				
	1.2	  	CHECK LAST ECM TREND DATA SIGNIFICANT FINDING REPORT	  		  	
				
	1.3	  	CHECK FOR COMPLETED POWER ASSURANCE RUN AND ENGINE PRESERVATION/STORAGE	  		  	
				
	1.4	  	CHECK AD NOTE STATUS. CHECK FOR REQUIRED SB INCORPORATION	  		  	
				
	2	  	ENGINE GENERAL INSPECTION IAW MM 72-00-00	  		  	
				
	2.1	  	ENGINE GENERAL INSPECTION IAW MM 72-00-00	  		  	
				
	2.2	  	VISUALLY INSPECT ENGINE STAND	  		  	
				
	2.3	  	RECORD ENGINE TRANSPORT STAND P/N; S/N	  		  	
				
	2.4	  	PERFORM PHOTO DOCUMENTATION OF ENGINE	  		  	
				
	2.5	  	COMPLETE ACCESSORY INVENTORY LIST INCLUDING EBU AND COMPARE WITH OUTGOING STATUS WHEN POSSIBLE	  		  	
				
	2.6	  	CHECK COMPLETE ENGINE FOR EVIDENCE HOT AIR, FUEL OR OIL LEAKAGES	  		  	
				
	2.7	  	CHECK DRAIN LINES FOR BLOCKAGE	  		  	
				
	3	  	ENGINE OIL SYSTEM INSPECTION IAW MM 79-00-00	  		  	
				
	3.1	  	DRAIN OIL TANK AND GEARBOX	  		  	
				
	3.2	  	REMOVE OIL SCAVENGE AND PRESSURE FILTER VISUALLY INSPECT OIL SCAVENGE AND PRESSURE FILTER FOR CONTAMINATION REPORT IMMEDIATELY ANY CONTAMINATION FOUND	  		  	
				
	3.3	  	INSTALL NEW OIL SCAVENGE AND PRESSURE FILTER COMPLETE WITH NEW O-RINGS	  		  	
				
	3.4	  	CHECK MAGNETIC CHIP DETECTORS FOR METAL CONTAMINATION REPORT IMMEDIATELY ANY CONTAMINATION FOUND ENGINE OIL SYSTEM INSPECTION IAW MM 79-36-00	  		  	

  
 Schedule 10 

							
	3.5	  	VISUALLY INSPECT THE OILTANK FOR EXTERNAL LEAKAGE, GENERAL CONDITION, SECURITY OF MOUNTING AND CONDITION OF CONNECTED TUBES.	  		  	
				
	4	  	ENGINE FUEL SYSTEM INSPECTION IAW MM 73-00-00	  		  	
				
	4.1	  	REMOVE MAIN FUEL PUMP FUEL FILTER, FUEL CONTROL FILTER AND FUEL DISTRIBUTION VALVE FILTER	  		  	
				
	4.2	  	INSPECT FUEL FILTERS FOR CONTAMINATION REPORT IMMEDIATELY ANY CONTAMINATION FOUND	  		  	
				
	4.3	  	INSTALL NEW FUEL FILTERS WITH NEW O- RINGS	  		  	
				
	4.4	  	VISUALLY INSPECT FUEL SYSTEM COMPONENTS INCLUDING TUBES, MANIFOLDS AND JOINTS	  		  	
				
	5	  	ENGINE FAN FRAME AND CASE ASSEMBLY INSPECTION IAW MM 72-33-00	  		  	
				
	5.1	  	PERFORM VISUAL INSPECTION OF FAN CASE FOR OBVIOUS DAMAGE, CRACKS, DENTS AND SCRATCHES.	  		  	
				
	5.2	  	PERFORM VISUAL INSPECTION OF FAN EXIT CASE FOR OBVIOUS DAMAGE, CRACKS, DENTS AND SCRATCHES:	  		  	
				
	6	  	HPC GENERAL INSPECTION IAW MM 72-37-00, VSV RIG CHECK 75-31-00	  		  	
				
	6.1	  	INSPECT VBV BLEED SYSTEM LINKAGE FOR WEAR	  		  	
				
	6.2	  	VISUALLY INSPECT VSV ACTUATION LINKAGE FOR ANY DAMAGE AND LOOSENESS. INSPECT ACTUATOR FOR LEAKAGE.	  		  	
				
	6.4	  	VISUALLY INSPECT ALL FLANGES FOR CRACKS, MISSING AND/ OR DAMAGED BOLT (CRACKS, CORROSION ETC.)	  		  	
				
	6.5	  	VISUALLY INSPECT THE HPC FRONT CASE IGV - VSV UNISON RING FOR GENERAL CONDITION, LOOSENESS AND EXCESSIVE WEAR. INSPECT AS ACCESSIBLE ALL VSV LEVER ARMS FOR GENERAL CONDITION AND LOOSE BOLTS.	  		  	
				
	7	  	HPC REAR FRAME AND HPT CASE GENERAL INSPECTION IAM MM 72-40-00,
72-50-00.	  		  	
				
	7.1	  	VISUALLY INSPECT THE COMPRESSOR REAR FRAME FOR CRACKS, BURNING ETC.	  		  	
				
	7.2	  	VISUALLY INSPECT THE COMPRESSOR REAR FRAME FRONT AND REAR FLANGE FOR BOLT HOLE CRACKS AND DEFORMATION.	  		  	
				
	7.3	  	VISUALLY INSPECT HPT CASE FOR GENERAL CONDITION, CRACKS, CORROSION AND ISOLATED EXCESSIVE HEAT DISCOLORATION.	  		  	
				
	7.4	  	VISUALLY INSPECT THE FUEL NOZZLES IN SITU.	  		  	

  
 Schedule 10 

							
	7.5	  	VISUALLY INSPECT ALL EXTERNAL PIPING OF HPT/DIFFUSER AREA FOR SECURITY OF ATTACHMENT, CHAFING MARKS AND/ OR OBVIOUS DAMAGE. PAY SPECIAL ATTENTION TO THE FUEL MANIFOLDS	  		  	
				
	8	  	LPT CASE AND TURBINE EXHAUST CASE GENERAL INSPECTION IAW MM 72-54-00.	  		  	
				
	8.1	  	VISUALLY INSPECT THE LPT CASE FOR GENERAL CONDITION, CRACKS, CORROSION AND HEAT DISCOLORATION.	  		  	
				
	8.2	  	VISUALLY INSPECT THE LPT CASE FRONT AND REAR FLANGES FOR CRACKS, DAMAGES AND MISSING OR LOOSE BOLTS.	  		  	
				
	8.3	  	VISUALLY INSPECT THE LPT COOLING MANIFOLDS FOR CRACKS.	  		  	
				
	9	  	ACCESSORY GEARBOX MODULE GENERAL INSPECTION IAW MM 72-61-00	  		  	
				
	9.1	  	VISUALLY INSPECT THE GEARBOX GROUP FOR GENERAL CONDITION, OBVIOUS DAMAGE/CRACKS, CORROSION AND SIGNS OF OIL LEAKAGE.	  		  	
				
	9.2	  	VISUALLY INSPECT THE GEARBOX GROUP MOUNTS FOR GENERAL CONDITION AND CRACKS.	  		  	
				
	9.3	  	IF CSD IS REMOVED FOR ANY REASON, PERFORM TORQUE CHECK OF ”CSD QAD RING MOUNT BOLTS	  		  	
				
	9.4	  	VISUALLY INSPECT THE FAN EXIT CASE C-FLANGE AT THE GEARBOX MOUNT LOCATION FOR CRACKS.	  		  	
				
	9,5	  	CHECK CARBON SEALS FOR SIGNS OF LEAKAGE	  		  	
				
	9.6	  	CHECK ACCESSIBLE DRIVE SPLINES FOR WEAR	  		  	
				
	9.7	  	VISUALLY INSPECT THE PIPING AROUND ACCESSORY GEARBOX FOR WEAR, CHAFING MARKS AND CORRECT INSTALLATION.	  		  	
				
	10	  	INSPECTION OF FWD AND AFT MOUNT IAW MM 71-21-00/71-20-02	  		  	
				
	10.1	  	VISUALLY INSPECT MOUNTS FWD AND REAR MOUNTS	  		  	
				
	11	  	GENERAL INSPECTION OF ACCESSORIES AND ASSOCIATED COMPONENTS	  		  	
				
	11.1	  	INSPECT ALL ACCESSORIES FOR SECURITY OF ATTACHMENT, OBVIOUS DAMAGE OR LEAKS. GIVE SPECIAL ATTENTION TO THE FOLLOWING ACCESSORIES:	  		  	
				
	11.2	  	INSPECT L&S PUMP FOR SIGNS OF LEAKAGES AND GENERAL CONDITION	  		  	
				
	11.3	  	INSPECT THE MAIN FUEL PUMP FOR EXTERNAL LEAKAGE AND SECURITY OF MOUNTING. LEAKAGE REF. MM 73-12-00	  		  	
				
	11.3a	  	INSPECT THE HMU FOR EXTERNAL LEAKAGE, SECURITY OF CONTROL TO PUMP AND ELECTRICAL CONNECTORS. 73-21-00	  		  	

  
 Schedule 10 

							
				
	11.3b	  	INSPECT THE FUEL/OIL HEAT EXCHANGER FOR EXTERNAL FUEL OR OIL LEAKAGE. REF.: 73-14-00.	  		  	
				
	11.4	  	INSPECT THE FADEC N1 SPEED SENSOR FOR GENERAL CONDITION AND SECURITY OF ELECTRICAL CONNECTOR.	  		  	
				
	11.5	  	INSPECT THE FADEC EEC FOR GENERAL CONDITION AND SECURITY OF ELECTRICAL CONNECTORS, MOUNTING AND SENSE TUBES.	  		  	
				
	12	  	GENERAL QEC INSPECTION	  		  	
				
	12.1	  	INSPECT THE “IDG” FOR GENERAL CONDITION AND LEAKAGE. MM 24-12-00	  		  	
				
	12.1a	  	INSPECT THE FILTER ELEMENT FOR CONTAMINATION.	  		  	
				
	12.1b	  	INSTALL NEW FILTER ELEMENT.	  		  	
				
	12.2	  	INSPECT THE HYDRAULIC PUMP FOR GENERAL CONDITION AND LEAKAGE. REF.: MM 29-11-0.0	  		  	
				
	12.3	  	CLEAN THE HYDRAULIC DRAIN TUBE FROM GEARBOX PAD TO DRAIN MAST. USE A BRUSH FOR INTERNAL CLEANING.	  		  	
				
	12.4	  	INSPECT THE PNEUMATIC STARTER FOR GENERAL CONDITION AND LEAKAGE. MM 80-12-00	  		  	
				
	12.5	  	INSPECT THE FUEL FLOW TRANSMITTER FOR GENERAL CONDITION AND SECURITY OF ELECTRICAL CONNECTOR. MM 73-31-00	  		  	
				
	12.6	  	INSPECT THE LOW OIL PRESSURE SWITCH, OIL FILTER DIFFERENCE PRESSURE SWITCH AND OIL DIFFERENCE PRESSURE SWITCH FOR GENERAL CONDITION AND SECURITY OF ELECTRICAL CONNECTORS.	  		  	
				
	12.7	  	INSPECT ALL RELATED TUBES AND FLEX HOSES FOR GENERAL CONDITION AND SIGNS OF LEAKAGE.	  		  	
				
	12.8	  	INSPECT ALL CABIN AIR SYSTEM DUCTS AND VALVES FOR GENERAL CONDITION AND CORRECT INSTALLATION.	  		  	
				
	12.9	  	INSPECT THE PRIMARY EXHAUST NOZZLE AND PLUG FOR GENERAL CONDITION.	  		  	
				
	13	  	ELECTRICAL CHECKS IAW CMM ELECTRICAL HARNESSES, CABLES, MM 71-50-00	  		  	
				
	13.1	  	PERFORM VISUAL INSPECTION OF ALL ELECTRICAL HARNESSES AND CONNECTORS IN INSTALLED CONDITION	  		  	
				
	13.2	  	INSPECT CORE AND GEARBOX FIRE LOOPS FOR GENERAL CONDITION. ENSURE FIRE DETECTOR SYSTEM CLIPPING IS ARRANGED TO PREVENT CHAFING	  		  	
				
	14	  	LPC VIDEO BORESCOPE INSPECTION AND FAN BLADE VISUAL INSP. IAW MM 72-00-00- POST TEST RUN	  		  	
				
	14.1	  	PERFORM VIDEO BSI OF STAGE ONE FAN ROTOR DISK AND SPOOL	  		  	
				
	15	  	HPC VIDEO BORESCOPE INSPECTION IAW MM 72-36-00
-72-37-00 POST TEST RUN	  		  	
				
	15.1	  	PERFORM VIDEO BSI OF HPC BLADES STG.l - 9.	  		  	

  
 Schedule 10 

							
				
	15.2	  	PERFORM VIDEO BSI OF HPC STATOR VANES.	  		  	
				
	16	  	VIDEO BSI OF COMBUSTOR, HPT NOZZLE AND HPT IAW MM 72-43-00 –
72-53-00 POST TEST RUN	  		  	
				
	16.1	  	PERFORM VIDEO BSI OF COMBUSTOR	  		  	
				
	16.2	  	PERFORM VIDEO BSI OF 1 STG. NOZZLE GUIDE VANES	  		  	
				
	16.3	  	PERFORM VIDEO BSI OF HP TURBINE STG. 1 BLADES LE & TE	  		  	
				
	16.4	  	PERFORM VIDEO BSI OF HP TURBINE STG. 2 BLADES LE	  		  	
				
	17	  	VIDEO BSI OF LPT IAW MM 72-54-00 - POST TEST RUN	  		  	
				
	17.1	  	PERFORM VIDEO BSI OF LPT BLADES	  		  	
				
	18	  	POST BSI TASKS	  		  	
				
	18.1	  	CONFIRM CORRECT INSTALLATION OF B.S.I. PLUGS AND REINSTALLED	  		  	

  

					
		 	  
	 	
		 	 NAME
	 	
			
		 	  
	 	
		 	 SIGNATURE
	 	
			
		 	  
	 	
		 	 DATE
	 	

  
 Schedule 10 

 SCHEDULE 11 

FORM OF REDELIVERY ACCEPTANCE CERTIFICATE 

Pursuant to the Engine Lease Agreement, dated as of January 10, 2018 (“Lease”), between CONTRAIL AVIATION
SUPPORT, LLC (“Lessor”) and 
*                     
(“Lessee”), this Redelivery Acceptance Certificate is executed delivered, on and as of the date set forth below, by Lessee and Lessor. Capitalized terms used but not defined
herein shall have the respective meanings set forth in the Lease. 
 Lessor hereby confirms to Lessee, its successors and assigns that: 

 

	1.	 on this ____ day of ________________, 20___, at the Delivery Location, it has received one CFM International,
Inc. model CFM56-7B26 aircraft engine, bearing manufacturer’s serial number  *               , together with full QEC,
installed on an engine transportation stand, with Technical Documents, including FAA 8130-3 certification dual release or EASA Form 1, pursuant to Section 3.2(a) of the Lease. 

 

	2.	 The Aircraft and Aircraft Documents are hereby accepted by Lessor for return under the Lease subject to
(i) the provisions of the Lease, and (ii) the correction by Lessee (or procurement by Lessee at Lessee’s cost) within 10 days following the date hereof of the discrepancies specified in Attachment 1 hereto. 

 

	3.	 Subject to the following paragraph, the Lease is hereby terminated without prejudice to Lessee’s
continuing obligations and Lessor’s continuing rights under the Lease and this Redelivery Acceptance Certificate. 

  

	4.	 Lessee represents and warrants that during the Lease Term all maintenance and repairs to the Aircraft and each
Item of Equipment were performed in accordance with the requirements of the Lease, and acknowledges, confirms and agrees that such representation and warranty shall survive the termination or expiration of the Lease. Lessee further confirms that all
of its obligations, liabilities and agreements under the Lease (collectively, the “Obligations”) whether accruing prior to the date hereof or which survive the termination or expiration of the Lease by their terms and accrue after the date
hereof, will remain in full force and effect until all such Obligations have been satisfied in full. 

  

	5.	 THIS REDELIVERY ACCEPTANCE CERTIFICATE SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, U.S.A., APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 

  
 Schedule 11 

 

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

 IN WITNESS WHEREOF, Lessee and Lessor have caused this Redelivery Acceptance Certificate to
be executed in its name, by its duly authorized officer(s) or representative(s), pursuant to due corporate authority, all as of the date set forth in Section 1 above. 
  

									
	 CONTRAIL AVIATION SUPPORT, LLC,
	 		 	*                      ,
	 as Lessor
	 		 	 as Lessee

									
					
	 By:
	 	 	 		 	 By:
	 	 
					
	 Name:
	 	 	 		 	 Name:
	 	 
					
	 Title:
	 	 	 		 	 Title:
	 	 

  
 Schedule 11 

 

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

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