Document:

EX-10.6

 Exhibit 10.6 

SECURITY AGREEMENT 
 THIS
SECURITY AGREEMENT (this “Agreement”), dated as of December 21, 2017, is entered into by and among AIR T, INC., a Delaware corporation (“Borrower”), and the guarantors listed on the signature pages hereto (the
“Original Guarantors”) or from time to time party hereto by execution of a joinder agreement (the “Additional Guarantors”, and together with the Original Guarantors, the “Guarantors”), as grantors,
pledgors, assignors and debtors (the Borrower, together with the Guarantors, in such capacities and together with any successors in such capacities, the “Grantors”, and each, a “Grantor”), in favor of MINNESOTA
BANK & TRUST, a Minnesota state banking corporation (together with its successors and assigns, the “Secured Party”). 

RECITALS 
 WHEREAS,
pursuant to that certain Credit Agreement, dated as of the date hereof (as amended, modified, extended, restated, renewed, replaced, or supplemented from time to time, the “Credit Agreement”) by and between the Borrower and the
Secured Party, the Secured Party has agreed to make Loans upon the terms and subject to the conditions set forth therein; and 
 WHEREAS,
this Agreement is required by the terms of the Credit Agreement. 
 NOW, THEREFORE, in consideration of these premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1.
Definitions. 
 (a) Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such
terms in the Credit Agreement. With reference to this Agreement, unless otherwise specified herein: (i) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined, (ii) whenever the context
may require, any pronoun shall include the corresponding masculine, feminine and neuter forms, (iii) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”, (iv) the word “will” shall be construed to have the same meaning and effect as the word “shall”, (v) any definition of, or reference to, any agreement, instrument or other document herein shall be construed as
referring to such agreement, instrument or other document, as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (vi) any reference herein to
any Person shall be construed to include such Person’s permitted successors and assigns, (vii) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (viii) all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Agreement, (ix) the
words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights, (x) the
term “documents” includes any and all instruments, documents, agreements, 

 
certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form, (xi) in the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and
including”, (xii) Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Agreement and (xiii) where the context requires, terms relating to the Collateral or any part thereof,
when used in relation to a Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof. 
 (b) The
following terms shall have the meanings set forth in the UCC (defined below): Accession, Account, Account Debtor, Adverse Claim, As-Extracted Collateral, Certificated Security, Chattel Paper, Commercial
Tort Claim, Consumer Goods, Deposit Account, Document, Electronic Chattel Paper, Equipment, Farm Products, Financial Asset, Fixtures, General Intangible, Goods, Instrument, Inventory, Investment Company Security, Investment Property, Letter-of-Credit Right, Manufactured Home, Payment Intangible, Proceeds, Securities Account, Securities Intermediary, Security, Software, Supporting Obligation and Tangible
Chattel Paper. 
 (c) In addition, the following terms shall have the meanings set forth below: 

“Assignment of Claims Act” means the Assignment of Claims Act of 1940 (41 U.S.C. Section 15, 31 U.S.C.
Section 3737, and 31 U.S.C. Section 3727), including all amendments thereto and regulations promulgated thereunder. 

“Collateral” has the meaning provided in Section 2 hereof. 

“Control” means the manner in which “control” is achieved under the UCC with respect to any
Collateral for which the UCC specifies a method of achieving “control”. 
 “Copyright License”
means any agreement now or hereafter in existence, providing for the grant by, or to, any rights (including, without limitation, the grant of rights for a party to be designated as an author or owner and/or to enforce, defend, use, display, copy,
manufacture, distribute, exploit and sell, make derivative works, and require joinder in suit and/or receive assistance from another party) covered in whole or in part by a Copyright. 

“Copyrights” means, collectively, all of the following of any Grantor: (i) all copyrights, works
protectable by copyright, copyright registrations and copyright applications anywhere in the world, (ii) all derivative works, counterparts, extensions and renewals of any of the foregoing, (iii) all income, royalties, damages and payments
now or hereafter due and/or payable under any of the foregoing or with respect to any of the foregoing, including, without limitation, damages or payments for past, present and future infringements, violations or misappropriations of any of the
foregoing, (iv) the right to sue for past, present and future infringements, violations or misappropriations of any of the foregoing and (v) all rights corresponding to any of the foregoing throughout the world. 

  
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 “Government Contract” means a contract between any Grantor and
an agency, department or instrumentality of the United States or any state, municipal or local Governmental Authority located in the United States or all obligations of any such Governmental Authority arising under any Account now or hereafter owing
by any such Governmental Authority, as Account Debtor, to any Grantor. 
 “Intellectual Property” means,
collectively, all of the following of any Grantor: (i) all systems software and applications software (including source code and object code), all documentation for such software, including, without limitation, user manuals, flowcharts,
functional specifications, operations manuals, and all formulas, processes, ideas and know-how embodied in any of the foregoing, (ii) concepts, discoveries, improvements and ideas, know-how, technology, reports, design information, trade secrets, practices, specifications, test procedures, maintenance manuals, research and development, inventions (whether or not patentable), blueprints,
drawings, data, customer lists, catalogs, and all physical embodiments of any of the foregoing, (iii) Patents and Patent Licenses, Copyrights and Copyright Licenses, Trademarks and Trademark Licenses and (iv) other agreements with respect
to any rights in any of the items described in the foregoing clauses (i), (ii), and (iii). 
 “Issuer” means
the issuer of any Pledged Equity. 
 “Patent License” means any agreement, now or hereafter in existence,
providing for the grant by, or to, any Grantor of any rights (including, without limitation, the right for a party to be designated as an owner and/or to enforce, defend, make, have made, make improvements, manufacture, use, sell, import, export,
and require joinder in suit and/or receive assistance from another party) covered in whole or in part by a Patent. 

“Patents” means collectively, all of the following of any Grantor: (i) all patents, all inventions and
patent applications anywhere in the world, (ii) all improvements, counterparts, reissues, divisional, re-examinations, extensions, continuations (in whole or in part) and renewals of any of the foregoing
and improvements thereon, (iii) all income, royalties, damages or payments now or hereafter due and/or payable under any of the foregoing or with respect to any of the foregoing, including, without limitation, damages or payments for past,
present or future infringements, violations or misappropriations of any of the foregoing, (iv) the right to sue for past, present and future infringements, violations or misappropriations of any of the foregoing and (v) all rights
corresponding to any of the foregoing throughout the world. 
 “Pledged Equity” means, with respect to each
Grantor, (i) 100% of the issued and outstanding Equity Interests of each Subsidiary of such Grantor that is directly owned by such Grantor, in each case together with the certificates (or other agreements or instruments), if any, representing
such shares, and all options and other rights, contractual or otherwise, with respect thereto, including, but not limited to, the following: 

(1) all Equity Interests representing a dividend thereon, or representing a distribution or return of capital upon or in
respect thereof, or resulting from a stock split, revision, reclassification or other exchange therefor, and any subscriptions, warrants, rights or options issued to the holder thereof, or otherwise in respect thereof; and 

  
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 (2) in the event of any consolidation or merger involving any Issuer and in
which such Issuer is not the surviving Person, all shares of each class of the Equity Interests of the successor Person formed by or resulting from such consolidation or merger, to the extent that such successor Person is a direct Subsidiary of a
Grantor. 
 “Trademark License” means any agreement, now or hereafter in existence, providing for the grant
by, or to, any Grantor of any rights in (including, without limitation, the right for a party to be designated as an owner and/or to enforce, defend, use, mark, police, and require joinder in suit and/or receive assistance from another party)
covered in whole, or in part, by a Trademark. 
 “Trademarks” means, collectively, all of the following of
any Grantor: (i) all trademarks, trade names, corporate names, company names, business names, fictitious business names, internet domain names, trade styles, service marks, logos, other business identifiers, whether registered or unregistered,
all registrations and recordings thereof, and all applications in connection therewith (other than each United States application to register any trademark or service mark prior to the filing under applicable law of a verified statement of use for
such trademark or service mark) anywhere in the world, (ii) all counterparts, extensions and renewals of any of the foregoing, (iii) all income, royalties, damages and payments now or hereafter due and/or payable under any of the foregoing
or with respect to any of the foregoing, including, without limitation, damages or payments for past, present or future infringements, violations, dilutions or misappropriations of any of the foregoing, (iv) the right to sue for past, present
or future infringements, violations, dilutions or misappropriations of any of the foregoing and (v) all rights corresponding to any of the foregoing (including the goodwill) throughout the world. 

“Vehicles” means all cars, trucks, trailers, construction and earth moving equipment and other vehicles
covered by a certificate of title under the laws of any state, all tires and all other appurtenances to any of the foregoing. 

“Vessel” means any watercraft or other artificial contrivance used, or capable of being used, as a means of
transportation on water (including, without limitation, those whose primary purpose is the maritime transportation of cargo or which are otherwise engaged, used or useful in any business activities of the Grantors) which are owned by and registered
(or to be owned and registered) in the name of any of the Grantors, including, without limitation, any Vessel leased or otherwise registered in the foregoing parties’ names, pursuant to a lease or other operating agreement constituting a
capital lease obligation, in each case together with all related spares, equipment and any additional improvements, vessel owned, bareboat chartered or operated by a Grantor other than Vessels owned by an entity other than a Grantor and which are
managed under Vessel management agreements. 

  
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 “UCC” means the Uniform Commercial Code as in effect from time
to time in the state of Minnesota except as such term may be used in connection with the perfection of the Collateral and then the applicable jurisdiction with respect to such affected Collateral shall apply. 

“USPTO” means the United States Patent and Trademark Office. 

“Work” means any work that is subject to copyright protection pursuant to Title 17 of the United States Code.

 2. Grant of Security Interest in the Collateral. To secure the prompt payment and performance in full when due, whether by lapse
of time, acceleration, mandatory prepayment or otherwise, of the Obligations, each Grantor hereby grants to the Secured Party, a continuing security interest in, and a right to set off against, any and all right, title and interest of such Grantor
in and to all of the following, whether now owned or existing or owned, acquired, or arising hereafter (collectively, the “Collateral”): (a) all Accounts; (b) all cash, currency and Cash Equivalents; (c) all Chattel Paper
(including Electronic Chattel Paper and Tangible Chattel Paper); (d) those certain Commercial Tort Claims set forth on Schedule A (as updated from time to time); (e) all Deposit Accounts; (f) all Documents;
(g) all Equipment; (h) all Fixtures; (i) all General Intangibles; (j) all Goods; (k) all Instruments; (l) all Intellectual Property; (m) all Inventory; (n) all Investment Property; (o) all Letter-of-Credit Rights; (p) all Payment Intangibles; (q) all Pledged Equity; (r) all Securities Accounts; (s) all Software; (t) all Supporting
Obligations; (u) all Vehicles; (v) all books and records pertaining to the Collateral; (w) all Accessions and all Proceeds and products of any and all of the foregoing and (x) all other personal property of any kind or type
whatsoever now or hereafter owned by such Grantor or as to which such Grantor now or hereafter has the power to transfer interest therein. 

The Grantors and the Secured Party hereby acknowledge and agree that the security interest created hereby in the Collateral
(a) constitutes continuing collateral security for all of the Obligations, whether now existing or hereafter arising and (b) is not to be construed as an assignment of any Intellectual Property. 

3. Representations and Warranties. Each Grantor hereby represents and warrants to the Secured Party that: 

(a) Ownership. Each Grantor is the legal and beneficial owner of its Collateral and has the right to pledge, sell,
assign or transfer the same. There exists no Adverse Claim with respect to the Pledged Equity of such Grantor. 
 (b)
Security Interest/Priority. This Agreement creates a valid security interest in favor of the Secured Party, in the Collateral of such Grantor and, when properly perfected by filing, shall constitute a valid and perfected, first priority
security interest in such Collateral (including all uncertificated Pledged Equity consisting of partnership or limited liability company interests that do not constitute Securities), free and clear of all Liens except for Permitted Liens. No Grantor
has authenticated any agreement authorizing any secured party thereunder to file a financing statement, except to perfect Permitted 

  
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Liens. The taking possession by the Secured Party of the certificated securities (if any) evidencing the Pledged Equity and all other Instruments constituting Collateral will perfect and
establish the first priority of the Secured Party’s security interest in all the Pledged Equity evidenced by such certificated securities and such Instruments. With respect to any Collateral consisting of a Deposit Account, Securities
Intermediary or held in a Securities Account, upon execution and delivery by the applicable Grantor, the applicable Securities Intermediary and the Secured Party of an agreement granting control to the Secured Party over such Collateral, the Secured
Party shall have a valid and perfected, first priority security interest in such Collateral. 
 (c) Types of
Collateral. None of the Collateral consists of, or is the Proceeds of, (i) As-Extracted Collateral, (ii) Consumer Goods, (iii) Farm Products, (iv) Manufactured Homes, (v) standing
timber, (vi) an aircraft, airframe, aircraft engine or related property, (vii) an aircraft leasehold interest, (viii) a Vessel or (ix) any other interest in or to any of the foregoing. 

(d) Accounts. (i) Each Account of the Grantors and the papers and documents relating thereto are genuine and in all
material respects what they purport to be, (ii) each Account arises out of (A) a bona fide sale of goods sold and delivered by such Grantor (or is in the process of being delivered) or (B) services theretofore actually rendered by
such Grantor to, the account debtor named therein, (iii) no Account of a Grantor is evidenced by any Instrument or Chattel Paper unless such Instrument or Chattel Paper, to the extent requested by the Secured Party, has been endorsed over and
delivered to, or submitted to the control of, the Secured Party, (iv) no surety bond was required or given in connection with any Account of a Grantor or the contracts or purchase orders out of which they arose, (v) the right to receive
payment under each Account is assignable and (vi) no Account Debtor has any defense, set-off, claim or counterclaim against any Grantor that can be asserted against the Secured Party, whether in any
proceeding to enforce the Secured Party’s rights in the Collateral otherwise, except defenses, setoffs, claims or counterclaims that are not, in the aggregate, material to the value of the Accounts. 

(e) Equipment and Inventory. With respect to any Equipment and/or Inventory of a Grantor, each such Grantor has
exclusive possession and control of such Equipment and Inventory of such Grantor except for (i) Equipment leased by such Grantor as a lessee, (ii) Equipment or Inventory in transit with common carriers or (iii) Equipment and/or
Inventory in the possession or control of a warehouseman, bailee or any agent or processor of such Grantor to the extent such Grantor has complied with Section 4(e). No Inventory of a Grantor is held by a Person other than a Grantor pursuant to
consignment, sale or return, sale on approval or similar arrangement. Collateral consisting of Inventory is of good and merchantable quality, free from defects. None of such Inventory is subject to any licensing, Patent, Trademark, trade name or
Copyright with any Person that restricts any Grantor’s ability to use, manufacture, lease, sell or otherwise dispose of such Inventory. The completion of the manufacturing process of such Inventory by a Person other than the applicable Grantor
would be permitted under any contract to which such Grantor is a party or to which the Inventory is subject. 

  
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 (f) Authorization of Pledged Equity. All Pledged Equity (i) is duly
authorized and validly issued, (ii) is fully paid and, to the extent applicable, nonassessable and is not subject to the preemptive rights of any Person, (iii) is beneficially owned as of record by a Grantor and (iv) constitute all
the issued and outstanding shares of all classes of the equity of such Issuer issued to such Grantor. 
 (g) Partnership
and Limited Liability Company Interests. Except as previously disclosed to the Secured Party, none of the Collateral consisting of an interest in a partnership or a limited liability company (i) is dealt in or traded on a securities
exchange or in a securities market, (ii) by its terms expressly provides that it is a Security governed by Article 8 of the UCC, (iii) is an Investment Company Security, (iv) is held in a Securities Account or (v) constitutes a
Security or a Financial Asset. 
 (h) Contracts; Agreements; Licenses. No Grantor has any material contracts,
agreements or licenses which are non-assignable by their terms, or as a matter of law, or which prevent the granting of a security interest therein. 

(i) Consents; Etc. No approval, consent, exemption, authorization or other action by, notice to, or filing with, any
Governmental Authority or any other Person (including, without limitation, any stockholder, member or creditor of such Grantor), is necessary or required for (i) the grant by such Grantor of the security interest in the Collateral granted
hereby or for the execution, delivery or performance of this Agreement by such Grantor, (ii) the perfection of such security interest (to the extent such security interest can be perfected by filing under the UCC, the granting of control (to
the extent required under Section 4(c) hereof) or by filing an appropriate notice with the USPTO or the United States Copyright Office) or (iii) the exercise by the Secured Party or the Secured Parties of the rights and remedies provided
for in this Agreement (including, without limitation, as against any Issuer), except for (A) the filing or recording of UCC financing statements or other filings under the Assignment of Claims Act, (B) the filing of appropriate notices
with the USPTO and the United States Copyright Office, (C) obtaining control to perfect the Liens created by this Agreement (to the extent required under Section 4(c) hereof), (D) such actions as may be required by Laws affecting the
offering and sale of securities, (E) consents, authorizations, filings or other actions which have been obtained or made, and (F) as may be required with respect to Vehicles registered under a certificate of title. 

(j) Commercial Tort Claims. As of the Closing Date, no Grantor has any Commercial Tort Claims seeking damages in excess
of $50,000 other than as set forth on Schedule A attached hereto. 
 (k) Copyrights,
Patents and Trademarks. 
 (i) All Intellectual Property of such Grantor is valid, subsisting, unexpired, enforceable and
has not been abandoned. 

  
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 (ii) No holding, decision or judgment has been rendered by any Governmental
Authority that would limit, cancel or question the validity of any Intellectual Property of any Grantor. 
 (iii) All
applications pertaining to the Copyrights, Patents and Trademarks of each Grantor have been duly and properly filed, and all registrations or letters pertaining to such Copyrights, Patents and Trademarks have been duly and properly filed and issued.

 (iv) No Grantor has made any assignment or agreement in conflict with the security interest in the Intellectual Property
of any Grantor hereunder. 
 (v) Each Grantor and each of its Subsidiaries, own, or possess the right to use, all of the
Intellectual Property that is reasonably necessary for the operation of their respective businesses, without conflict with the rights of any other Person. 

(vi) No slogan or other advertising device, product, process, method, substance, part or other material now employed, or now
contemplated to be employed by any Grantor or any of its Subsidiaries infringes upon any rights held by any other Person. 

(vii) No proceeding, claim or litigation regarding any of the foregoing is pending or, to the best knowledge of such Grantor,
threatened, which, either individually or in the aggregate, could reasonably be expected to constitute a Material Adverse Occurrence. 
 4.
Covenants. Each Grantor covenants that such Grantor shall: 
 (a) Maintenance of Perfected Security Interest;
Further Information. 
 (i) Maintain the security interest created by this Agreement as a first priority perfected
security interest (subject only to Permitted Liens) and shall defend such security interest against the claims and demands of all Persons whomsoever (other than the holders of Permitted Liens). 

(ii) From time to time furnish to the Secured Party upon the Secured Party’s reasonable request, statements and schedules
further identifying and describing the assets and property of such Grantor and such other reports in connection therewith as the Secured Party may reasonably request, all in reasonable detail. 

(b) Required Notifications. Each Grantor shall promptly notify the Secured Party, in writing, of: (i) any Lien
(other than Permitted Liens) on any of the Collateral which would adversely affect the ability of the Secured Party to exercise any of its remedies hereunder and (ii) the occurrence of any other event which could reasonably be expected to have
a material impairment on the aggregate value of the Collateral or on the security interests created hereby. 

  
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 (c) Perfection through Possession and Control. 

(i) If any amount payable under or in connection with any of the Collateral shall be or become evidenced by any Instrument or
Tangible Chattel Paper or Supporting Obligation, or if any property constituting Collateral shall be stored or shipped subject to a Document, ensure that such Instrument, Tangible Chattel Paper, Supporting Obligation or Document is either in the
possession of such Grantor at all times or, if requested by the Secured Party to perfect its security interest in such Collateral, is delivered to the Secured Party duly endorsed in a manner satisfactory to the Secured Party. Such Grantor shall
ensure that any Collateral consisting of Tangible Chattel Paper is marked with a legend acceptable to the Secured Party indicating the Secured Party’s security interest in such Tangible Chattel Paper. To the extent the value of all certificated
securities, Instruments, Documents, Supporting Obligation and Tangible Chattel Paper not in the possession of the Secured Party exceeds $50,000, the Grantors shall deliver such certificated securities, Instruments, Documents, Supporting Obligations
and Tangible Chattel Paper to the Secured Party so that the value in the aggregate of all certificated securities, Instruments, Documents, Supporting Obligations and Tangible Chattel Paper not in the possession of the Secured Party does not exceed
$50,000. 
 (ii) Deliver to the Secured Party promptly upon the receipt thereof by or on behalf of a Grantor, all
certificates and instruments constituting Certificated Securities or Pledged Equity. Prior to delivery to the Secured Party, all such certificates constituting Pledged Equity shall be held in trust by such Grantor for the benefit of the Secured
Party pursuant hereto. All such certificates representing Pledged Equity shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, substantially in the form
provided in Exhibit A hereto or other form acceptable to the Secured Party. 
 (iii) If any
Collateral shall consist of Deposit Accounts, Electronic Chattel Paper, Letter-of-Credit Rights, Securities Accounts or uncertificated Investment Property, execute and
deliver (and, with respect to any Collateral consisting of a Securities Account or uncertificated Investment Property, cause the Securities Intermediary or the Issuer, as applicable, with respect to such Investment Property to execute and deliver)
to the Secured Party all control agreements, assignments, instruments or other documents as reasonably requested by the Secured Party for the purposes of obtaining and maintaining Control of such Collateral. 

  
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 (d) Filing of Financing Statements, Notices, etc. Each Grantor shall
execute and deliver to the Secured Party and/or file such agreements, assignments or instruments (including affidavits, notices, reaffirmations and amendments and restatements of existing documents, as the Secured Party may reasonably request) and
do all such other things as the Secured Party may reasonably deem necessary or appropriate (i) to assure to the Secured Party its security interests hereunder, including (A) such instruments as the Secured Party may from time to time
reasonably request in order to perfect and maintain the security interests granted hereunder in accordance with the UCC, including, without limitation, financing statements (including continuation statements), (B) with regard to Copyrights, a
Notice of Grant of Security Interest in Copyrights substantially in the form of Exhibit B or other form acceptable to the Secured Party, (C) with regard to Patents, a Notice of Grant of Security Interest in Patents for
filing with the USPTO substantially in the form of Exhibit C or other form acceptable to the Secured Party and (D) with regard to Trademarks, a Notice of Grant of Security Interest in Trademarks for filing with the
USPTO substantially in the form of Exhibit D or other form acceptable to the Secured Party, (ii) to consummate the transactions contemplated hereby and (iii) to otherwise protect and assure the Secured Party of
its rights and interests hereunder. Furthermore, each Grantor also hereby irrevocably makes, constitutes and appoints the Secured Party, its nominee or any other person whom the Secured Party may designate, as such Grantor’s attorney in fact
with full power and for the limited purpose to prepare and file (and, to the extent applicable, sign) in the name of such Grantor any financing statements, or amendments and supplements to financing statements, renewal financing statements, notices
or any similar documents which in the Secured Party’s reasonable discretion would be necessary or appropriate in order to perfect and maintain perfection of the security interests granted hereunder, such power, being coupled with an interest,
being and remaining irrevocable until the Termination Date. Each Grantor hereby agrees that a carbon, photographic or other reproduction of this Agreement or any such financing statement is sufficient for filing as a financing statement by the
Secured Party without notice thereof to such Grantor wherever the Secured Party may in its sole discretion desire to file the same. 

(e) Collateral Held by Warehouseman, Bailee, etc. 

(i) If any Collateral is at any time in the possession or control of a warehouseman, bailee or any agent or processor of such
Grantor (A) notify the Secured Party of such possession, (B) notify such Person in writing of the Secured Party’s security interest for the benefit of the Secured Parties in such Collateral, (C) instruct such Person to hold all
such Collateral for the Secured Party’s account and subject to the Secured Party’s instructions and (D) unless otherwise consented to in writing by the Secured Party, obtain (1) a written acknowledgment from such Person that it
is holding such Collateral for the benefit of the Secured Party and (2) such other documentation required by the Secured Party (including, without limitation, subordination and access agreements). 

  
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 (ii) Perfect and protect such Grantor’s ownership interests in all Inventory
stored with a consignee against creditors of the consignee by filing and maintaining financing statements against the consignee reflecting the consignment arrangement filed in all appropriate filing offices, providing any written notices required by
the UCC to notify any prior creditors of the consignee of the consignment arrangement, and taking such other actions as may be appropriate to perfect and protect such Grantor’s interests in such inventory under
Section 2-326, Section 9-103, Section 9-324 and Section 9-505 of the
UCC or otherwise, which such financing statements filed pursuant to this Section shall be assigned to the Secured Party. 

(f) Treatment of Accounts. Not grant or extend the time for payment of any Account, or compromise or settle any Account
for less than the full amount thereof, or release any person or property, in whole or in part, from payment thereof, or amend, supplement or modify any Account in any manner that could reasonably be likely to adversely affect the value thereof, or
allow any credit or discount thereon, other than as normal and customary in the ordinary course of a Grantor’s business. Each Grantor will deliver to the Secured Party a copy of each material demand, notice or document received by it that
questions or calls into doubt the validity or enforceability of any Account. 
 (g) Commercial Tort Claims. Execute
and deliver such statements, documents and notices and do and cause to be done all such things as may be required by the Secured Party, or required by Law to create, preserve, perfect and maintain the Secured Party’s security interest in any
Commercial Tort Claims initiated by or in favor of any Grantor. 
 (h) Inventory. With respect to the Inventory of
each Grantor: 
 (i) At all times maintain inventory records reasonably satisfactory to the Secured Party, keeping correct
and accurate records itemizing and describing the kind, type, quality and quantity of Inventory and such Grantor’s cost therefore and daily withdrawals therefrom and additions thereto. 

(ii) Produce, use, store and maintain the Inventory with all reasonable care and caution and in accordance with applicable
standards of any insurance and in conformity with applicable Laws (including the requirements of the Federal Fair Labor Standards Act of 1938, as amended and all rules, regulations and orders related thereto). 

(i) Books and Records. Mark its books and records (and shall cause the Issuer of the Pledged Equity of such Grantor to
mark its books and records) to reflect the security interest granted pursuant to this Agreement. 
 (i) Nature of
Collateral. At all times maintain the Collateral as personal property and not affix any of the Collateral to any real property in a manner which would change its nature from personal property to real property or a Fixture to real property,
unless the Secured Party shall have a perfected Lien on such Fixture or real property. 

  
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 (j) Issuance or Acquisition of Equity Interests in Partnerships or Limited
Liability Companies. 
 (i) Not without executing and delivering, or causing to be executed and delivered, to the Secured
Party such agreements, documents and instruments as the Secured Party may reasonably require, issue or acquire any Pledged Equity consisting of an interest in a partnership or a limited liability company that (A) is dealt in or traded on a
securities exchange or in a securities market, (B) by its terms expressly provides that it is a Security governed by Article 8 of the UCC, (C) is an investment company security, (D) is held in a Securities Account or
(E) constitutes a Security or a Financial Asset. 
 (ii) Without the prior written consent of the Secured Party, no
Grantor will (A) vote to enable, or take any other action to permit, any applicable Issuer to issue any Investment Property or Equity Interests constituting partnership or limited liability company interests, except for those additional
Investment Property or Equity Interests constituting partnership or limited liability company interests that will be subject to the security interest granted herein in favor of the Secured Parties, or (B) enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Secured Party to sell, assign or transfer any Investment Property or Pledged Equity or Proceeds thereof. The Grantors will defend the right, title and interest of the Secured Party in and to
any Investment Property and Pledged Equity against the claims and demands of all Persons whomsoever. 
 (iii) If any Grantor
shall become entitled to receive or shall receive (A) any Certificated Securities (including, without limitation, any certificate representing a stock dividend or a distribution in connection with any reclassification, increase or reduction of
capital or any certificate issued in connection with any reorganization), option or rights in respect of the ownership interests of any Issuer, whether in addition to, in substitution of, as a conversion of, or in exchange for, any Investment
Property, or otherwise in respect thereof, or (B) any sums paid upon or in respect of any Investment Property upon the liquidation or dissolution of any Issuer, such Grantor shall accept the same as the agent of the Secured Parties, hold the
same in trust for the Secured Parties, segregated from other funds of such Grantor, and promptly deliver the same to the Secured Party, in accordance with the terms hereof. 

(k) Intellectual Property. 

(i) Not do any act or omit to do any act whereby any material Copyright may become invalidated and (A) not do any act, or
omit to do any act, whereby any material Copyright may become injected into the public domain; (B) notify the Secured Party immediately if it knows that any material Copyright may become injected into the public domain or of any materially
adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any court or tribunal in the United States or any other country) regarding a Grantor’s ownership of any such
Copyright or its validity; (C) take all necessary steps as it shall deem appropriate under the circumstances, to maintain and pursue each application (and to obtain the relevant 

  
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registration) of each material Copyright owned by a Grantor and to maintain each registration of each material Copyright owned by a Grantor including, without limitation, filing of applications
for renewal where necessary; and (D) promptly notify the Secured Party of any material infringement, misappropriation, dilution or impairment of any Copyright of a Grantor of which it becomes aware and take such actions as it shall reasonably
deem appropriate under the circumstances to protect such Copyright, including, where appropriate, the bringing of suit for infringement, dilution or impairment or seeking injunctive relief and seeking to recover any and all damages for such
infringement, misappropriation, dilution or impairment. 
 (ii) Not make any assignment or agreement in conflict with the
security interest in the Copyrights of each Grantor hereunder. 
 (iii) (A) Continue to use each material Trademark on each
and every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force free from any claim of abandonment for
non-use, (B) maintain as in the past the quality of products and services offered under such Trademark, (C) employ such Trademark with the appropriate notice of registration, if applicable,
(D) not adopt or use any mark that is confusingly similar or a colorable imitation of such Trademark unless the Secured Party, shall obtain a perfected security interest in such mark pursuant to this Agreement, and (E) not (and not permit
any licensee or sublicensee thereof to) do any act or omit to do any act whereby any such Trademark may become invalidated. 

(iv) Not do any act, or omit to do any act, whereby any material Patent may become abandoned or dedicated. 

(v) Notify the Secured Party and the Secured Parties immediately if it knows that any application or registration relating to
any material Patent or Trademark may become abandoned or dedicated, or of any materially adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the
USPTO or any court or tribunal in any country) regarding such Grantor ownership of any Patent or Trademark or its right to register the same or to keep and maintain the same. 

(vi) Take all reasonable and necessary steps, including, without limitation, in any proceeding before the USPTO, or any similar
office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of each material Patent and Trademark, including, without
limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability. 

  
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 (vii) Promptly notify the Secured Party and the Secured Parties after it learns
that any material Patent or Trademark included in the Collateral is infringed, misappropriated, diluted or impaired by a third party and promptly sue for infringement, misappropriation, dilution or impairment, to seek injunctive relief where
appropriate and to recover any and all damages for such infringement, misappropriation, dilution or impairment, or to take such other actions as it shall reasonably deem appropriate under the circumstances to protect such Patent or Trademark. 

(viii) Not make any assignment or agreement in conflict with the security interest in the Patents or Trademarks of each Grantor
hereunder. 
 (ix) Grants to the Secured Party a royalty free license to use such Grantor’s Intellectual Property in
connection with the enforcement of the Secured Party’s rights hereunder, but only to the extent any license or agreement granting such Grantor rights in such Intellectual Property do not prohibit such use by the Secured Party. 

Notwithstanding the foregoing, the Grantors may, in their reasonable business judgment, fail to maintain, pursue, preserve or
protect any Copyright, Patent or Trademark which is not material to their businesses. 
 (l) Equipment. Maintain each
item of Equipment in good working order and condition (reasonable wear and tear and obsolescence excepted). 
 (m)
Government Contracts. Promptly notify the Secured Party, in writing, if it enters into any contract with a Governmental Authority under which such Governmental Authority, as account debtor, owes a monetary obligation to any Grantor under any
Account. 
 (n) Vehicles. Upon the request of the Secured Party upon the occurrence and during the continuance of an
Event of Default, file or cause to be filed in each office in each jurisdiction which the Secured Party shall deem reasonably advisable to perfect its Liens on the Vehicles, all applications for certificates of title or ownership (and any other
necessary documentation) indicating the Secured Party’s first priority Lien on the Vehicle (subject to any Permitted Liens) covered by such certificate. 

(o) Internet Property Rights. With respect to its rights, titles and interests in and to any internet domain names or
registration rights relating thereto, and any internet websites or the content thereof (collectively, “Internet Property Rights”) whether now existing or hereafter created or acquired and wheresoever located, each Grantor shall
cause to be delivered to the Secured Party an undated transfer document with respect to each of its internet domain names, duly executed in blank by such Grantor and in the form required by the applicable internet domain name registrar, sufficient
to effect the transfer of each internet domain name to the transferee thereof named in such transfer form upon delivery to such registrar. 

  
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 (p) Further Assurances. 

(i) Promptly upon the request of the Secured Party and at the sole expense of the Grantors, duly execute and deliver, and have
recorded, such further instruments and documents and take such further actions as the Secured Party may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, (A) the assignment of any Material Contract, (B) with respect to Government Contracts, assignment agreements and notices of assignment, in form and substance satisfactory to the Secured Party, duly executed
by any Grantors party to such Government Contract in compliance with the Assignment of Claims Act (or analogous state applicable Law), and (C) all applications, certificates, instruments, registration statements, and all other documents and
papers the Secured Party may reasonably request and as may be required by law in connection with the obtaining of any consent, approval, registration, qualification, or authorization of any Person deemed necessary or appropriate for the effective
exercise of any rights under this Agreement; provided that no Grantor shall be required to take any action to perfect a security interest in any Collateral that the Secured Party reasonably determines in its sole discretion that the costs and
burdens to the Grantors of perfecting a security interest in such Collateral (including any applicable stamp, intangibles or other taxes) are excessive in relation to value to the Secured Party afforded thereby. 

(ii) From time to time upon the Secured Party’s reasonable request, promptly furnish such updates to the information
disclosed pursuant to this Agreement and the Credit Agreement, including any Schedules hereto or thereto, such that such updated information is true and correct as of the date so furnished. 

5. Authorization to File Financing Statements. Each Grantor hereby authorizes the Secured Party to prepare and file such financing
statements (including continuation statements) or amendments thereof or supplements thereto or other instruments as the Secured Party may from time to time deem necessary or appropriate in order to perfect and maintain the security interests granted
hereunder in accordance with the UCC, which such financing statements may describe the Collateral in the same manner as described herein or may contain an indication or description of Collateral that describes such property in any other manner as
the Secured Party may determine, in its sole discretion, is necessary, advisable or prudent to ensure the perfection of the security interest in the Collateral granted herein, including, without limitation, describing such property as “all
assets, whether now owned or hereafter acquired” or “all personal property, whether now owned or hereafter acquired.” 
 6.
Advances. On failure of any Grantor to perform any of the covenants and agreements contained herein or in any other Loan Document, the Secured Party may, at its sole option and in its sole discretion, perform the same and in so doing may
expend such sums as the Secured Party may reasonably deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums, the payment of any taxes, a payment to obtain a release of a Lien or potential
Lien, expenditures made in defending against any adverse claim and all other expenditures which the Secured Party may make for the protection of the security 

  
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hereof or which may be compelled to make by operation of Law. All such sums and amounts so expended shall be repayable by the Grantors on a joint and several basis promptly upon timely notice
thereof and demand therefor, shall constitute additional Obligations and shall bear interest from the date said amounts are expended at the Default Rate. No such performance of any covenant or agreement by the Secured Party on behalf of any Grantor,
and no such advance or expenditure therefor, shall relieve the Grantors of any Default or Event of Default. The Secured Party may make any payment hereby authorized in accordance with any bill, statement or estimate procured from the appropriate
public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the extent such payment is
being contested in good faith by a Grantor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP. 

7. Remedies. 

(a) General Remedies. Upon the occurrence of an Event of Default and during continuation thereof, the Secured Party on
behalf of the Secured Parties shall have, in addition to the rights and remedies provided herein, in the Loan Documents, in any other documents relating to the Obligations, or by any applicable Law (including, but not limited to, levy of attachment,
garnishment and the rights and remedies set forth in the UCC of the jurisdiction applicable to the affected Collateral), the rights and remedies of a secured party under the UCC (regardless of whether the UCC is the law of the jurisdiction where the
rights and remedies are asserted and regardless of whether the UCC applies to the affected Collateral), and further, the Secured Party may, with or without judicial process or the aid and assistance of others, (i) enter on any premises on which
any of the Collateral may be located and, without resistance or interference by the Grantors, take possession of the Collateral, (ii) dispose of any Collateral on any such premises, (iii) require the Grantors to assemble and make available
to the Secured Party at the expense of the Grantors any Collateral at any place and time designated by the Secured Party which is reasonably convenient to both parties, (iv) remove any Collateral from any such premises for the purpose of
effecting sale or other disposition thereof, or (v) without demand and without advertisement, notice, hearing or process of law, all of which each of the Grantors hereby waives to the fullest extent permitted by Law, at any place and time or
times, sell, lease, assign, give option or options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels any or all Collateral held by or for it at public
or private sale (which in the case of a private sale of Pledged Equity, shall be to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such securities for their own account, for investment and not with a
view to the distribution or resale thereof), at any exchange or broker’s board or elsewhere, by one or more contracts, in one or more parcels, for money, upon credit or otherwise, at such prices and upon such terms as the Secured Party deems
advisable, in its sole discretion (subject to any and all mandatory legal requirements). Each Grantor acknowledges that any such private sale may be at prices and on terms less favorable to the seller than the prices and other terms which might have
been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sale shall be deemed to have been made in a commercially reasonable manner and, in the case of a sale of Pledged Equity,

  
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that the Secured Party shall have no obligation to delay sale of any such securities for the period of time necessary to permit the Issuer of such securities to register such securities for
public sale under the Securities Act of 1933. The Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by applicable Law, upon any such private sale or sales, to purchase the whole or any part of the
Collateral so sold. Neither the Secured Party’s compliance with applicable Law nor its disclaimer of warranties relating to the Collateral shall be considered to adversely affect the commercial reasonableness of any sale. To the extent the
rights of notice cannot be legally waived hereunder, each Grantor agrees that any requirement of reasonable notice shall be met if such notice, specifying the place of any public sale or the time after which any private sale is to be made, is
personally served on or mailed, postage prepaid, to the Borrowers in accordance with the notice provisions of the Credit Agreement at least 10 days before the time of sale or other event giving rise to the requirement of such notice. Each Grantor
further acknowledges and agrees that any offer to sell any Pledged Equity which has been (A) publicly advertised on a bona fide basis in a newspaper or other publication of general circulation in the financial community of Minnesota, Minnesota
(to the extent that such offer may be advertised without prior registration under the Securities Act of 1933), or (B) made privately in the manner described above shall be deemed to involve a “public sale” under the UCC,
notwithstanding that such sale may not constitute a “public offering” under the Securities Act of 1933, and the Secured Party may, in such event, bid for the purchase of such securities. The Secured Party shall not be obligated to make any
sale or other disposition of the Collateral regardless of notice having been given. To the extent permitted by applicable Law, any Secured Party may be a purchaser at any such sale. To the extent permitted by applicable Law, each of the Grantors
hereby waives all of its rights of redemption with respect to any such sale. Subject to the provisions of applicable Law, the Secured Party may postpone or cause the postponement of the sale of all or any portion of the Collateral by announcement at
the time and place of such sale, and such sale may, without further notice, to the extent permitted by Law, be made at the time and place to which the sale was postponed, or the Secured Party may further postpone such sale by announcement made at
such time and place. To the extent permitted by applicable Law, each Grantor waives all claims, damages and demands it may acquire against the Secured Party or any Secured Party arising out of the exercise by them of any rights hereunder except to
the extent any such claims, damages or demands result solely from the gross negligence or willful misconduct of the Secured Party as determined by a final non-appealable judgment of a court of competent
jurisdiction, in each case against whom such claim is asserted. Each Grantor agrees that the internet shall constitute a “place” for purposes of Section 9-610(b) of the UCC and that any sale of
Collateral to a licensor pursuant to the terms of a license agreement between such licensor and a Grantor is sufficient to constitute a commercially reasonable sale (including as to method, terms, manner, and time) within the meaning of Section 9-610 of the UCC. 

  
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 (b) Remedies Relating to Accounts. 

(i) During the continuation of an Event of Default, whether or not the Secured Party has exercised any or all of its rights and
remedies hereunder, (A) each Grantor shall notify (such notice to be in form and substance satisfactory to the Secured Party) its Account Debtors and parties to the Material Contracts subject to a security interest hereunder that such Accounts
and the Material Contracts have been assigned to the Secured Party and promptly upon request of the Secured Party, instruct all account debtors to remit all payments in respect of Accounts to a mailing location selected by the Secured Party and
(B) the Secured Party shall have the right to enforce any Grantor’s rights against its customers and account debtors, and the Secured Party or its designee may notify any Grantor’s customers and account debtors that the Accounts of
such Grantor have been assigned to the Secured Party or of the Secured Party’s security interest therein, and may (either in its own name or in the name of a Grantor or both) demand, collect (including without limitation by way of a lockbox
arrangement), receive, take receipt for, sell, sue for, compound, settle, compromise and give acquittance for any and all amounts due or to become due on any Account, and, in the Secured Party’s discretion, file any claim or take any other
action or proceeding to protect and realize upon the security interest of the Secured Parties in the Accounts. 
 (ii) Each
Grantor acknowledges and agrees that the Proceeds of its Accounts remitted to or on behalf of the Secured Party in accordance with the provisions hereof shall be solely for the Secured Party’s own convenience and that such Grantor shall not
have any right, title or interest in such Accounts or in any such other amounts except as expressly provided herein. Neither the Secured Party nor the Secured Parties shall have any liability or responsibility to any Grantor for acceptance of a
check, draft or other order for payment of money bearing the legend “payment in full” or words of similar import or any other restrictive legend or endorsement or be responsible for determining the correctness of any remittance. 

(iii) During the continuation of an Event of Default, (A) the Secured Party shall have the right, but not the obligation,
to make test verifications of the Accounts in any manner and through any medium that it reasonably considers advisable, and the Grantors shall furnish all such assistance and information as the Secured Party may require in connection with such test
verifications, (B) upon the Secured Party’s request and at the expense of the Grantors, the Grantors shall cause independent public accountants or others satisfactory to the Secured Party to furnish to the Secured Party reports showing
reconciliations, aging and test verifications of, and trial balances for, the Accounts and (C) the Secured Party in its own name or in the name of others may communicate with account debtors on the Accounts to verify with them to the Secured
Party’s satisfaction the existence, amount and terms of any Accounts. 
 (iv) Upon the request of the Secured Party,
each Grantor shall forward to the Secured Party, on the last Business Day of each week, deposit slips related to all cash, money, checks or any other similar items of payment received by the Grantor during such week, and, if requested by the Secured
Party, copies of such checks or any other similar items of payment, together with a statement showing the application of all payments on the Collateral during such week and a collection report with regard thereto, in form and substance satisfactory
to the Secured Party. 

  
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 (c) Deposit Accounts/Securities Accounts. Upon the occurrence of an Event
of Default and during continuation thereof, the Secured Party may prevent withdrawals or other dispositions of funds in Deposit Accounts and Securities Accounts subject to control agreements or held with any Secured Party. 

(d) Investment Property/Pledged Equity. Upon the occurrence of an Event of Default and during the continuation thereof:
the Secured Party shall have the right to receive any and all cash dividends, payments or distributions made in respect of any Investment Property or Pledged Equity or other Proceeds paid in respect of any Investment Property or Pledged Equity, and
any or all of any Investment Property or Pledged Equity may, at the option of the Secured Party, be registered in the name of the Secured Party or its nominee, and the Secured Party or its nominee may thereafter exercise (i) all voting,
corporate and other rights pertaining to such Investment Property, or any such Pledged Equity at any meeting of shareholders, partners or members of the relevant Issuers or otherwise and (ii) any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to such Investment Property or Pledged Equity as if it were the absolute owner thereof (including, without limitation, the right to exchange at its discretion any and all of the
Investment Property or Pledged Equity upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the corporate, partnership or limited liability company structure of any Issuer or upon the exercise by any Grantor
or the Secured Party of any right, privilege or option pertaining to such Investment Property or Pledged Equity, and in connection therewith, the right to deposit and deliver any and all of the Investment Property or Pledged Equity with any
committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as the Secured Party may determine), all without liability except to account for property actually received by it; but the Secured Party shall
have no duty to any Grantor to exercise any such right, privilege or option and the Secured Party shall not be responsible for any failure to do so or delay in so doing. In furtherance thereof, each Grantor hereby authorizes and instructs each
Issuer with respect to any Collateral consisting of Investment Property and/or Pledged Equity to (A) comply with any instruction received by it from the Secured Party in writing that (1) states that an Event of Default has occurred and is
continuing and (2) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from such Grantor, and each Grantor agrees that each Issuer shall be fully protected in so complying following receipt of
such notice and prior to notice that such Event of Default is no longer continuing, and (B) except as otherwise expressly permitted hereby, pay any dividends, distributions or other payments with respect to any Investment Property or Pledged
Equity directly to the Secured Party. Unless an Event of Default shall have occurred and be continuing and the Secured Party shall have given notice to the relevant Grantor of the Secured Party’s intent to exercise its corresponding
rights pursuant to this Section 7, each Grantor shall be permitted to receive all cash dividends, payments or other distributions made in respect of any Investment Property and any Pledged Equity, in each case paid in the normal course of
business of the relevant Issuer and consistent with past practice, to the extent permitted in the Credit Agreement, and to exercise all voting and other corporate, company and partnership rights with respect to any Investment Property and Pledged
Equity to the extent not inconsistent with the terms of this Agreement and the other Loan Documents. 

  
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 (e) Material Contracts. Upon the occurrence of an Event of Default and
during the continuation thereof, the Secured Party shall be entitled to (but shall not be required to): (i) proceed to perform any and all obligations of the applicable Grantor under any Material Contract and exercise all rights of such Grantor
thereunder as fully as such Grantor itself could, (ii) do all other acts which the Secured Party may deem necessary or proper to protect its security interest granted hereunder, provided such acts are not inconsistent with or in violation of
the terms of any of the Credit Agreement, of the other Loan Documents or applicable Law, and (iii) sell, assign or otherwise transfer any Material Contract in accordance with the Credit Agreement, the other Loan Documents and applicable Law,
subject, however, to the prior approval of each other party to such Material Contract, to the extent required under such Material Contract. 

(f) Access. In addition to the rights and remedies hereunder, upon the occurrence of an Event of Default and during the
continuance thereof, the Secured Party shall have the right to enter and remain upon the various premises of the Grantors without cost or charge to the Secured Party, and use the same, together with materials, supplies, books and records of the
Grantors for the purpose of collecting and liquidating the Collateral, or for preparing for sale and conducting the sale of the Collateral, whether by foreclosure, auction or otherwise. In addition, the Secured Party may remove Collateral, or any
part thereof, from such premises and/or any records with respect thereto, in order to effectively collect or liquidate such Collateral. If the Secured Party exercises its right to take possession of the Collateral, each Grantor shall also at its
expense perform any and all other steps reasonably requested by the Secured Party to preserve and protect the security interest hereby granted in the Collateral, such as placing and maintaining signs indicating the security interest of the Secured
Party, appointing overseers for the Collateral and maintaining inventory records. 
 (g) Nonexclusive Nature of
Remedies. Failure by the Secured Party or the Secured Parties to exercise any right, remedy or option under this Agreement, any other Loan Document, any other document relating to the Obligations, or as provided by Law, or any delay by the
Secured Party or the Secured Parties in exercising the same, shall not operate as a waiver of any such right, remedy or option. No waiver hereunder shall be effective unless it is in writing, signed by the party against whom such waiver is sought to
be enforced and then only to the extent specifically stated, which in the case of the Secured Party or the Secured Parties shall only be granted as provided herein. To the extent permitted by Law, neither the Secured Party, the Secured Parties, nor
any party acting as attorney for the Secured Party or the Secured Parties, shall be liable hereunder for any acts or omissions or for any error of judgment or mistake of fact or law other than their gross negligence or willful misconduct hereunder
as determined by a final non-appealable judgment of a court of competent jurisdiction. The rights and remedies of the Secured Party and the Secured Parties under this Agreement shall be cumulative and not exclusive of any other right or remedy which
the Secured Party or the Secured Parties may have. 

  
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 (h) Retention of Collateral. In addition to the rights and remedies
hereunder, the Secured Party may, in compliance with Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of applicable Law of the
relevant jurisdiction, accept or retain the Collateral in satisfaction of the Obligations. Unless and until the Secured Party shall have provided such notices, however, the Secured Party shall not be deemed to have retained any Collateral in
satisfaction of any Obligations for any reason. 
 (i) Waiver; Deficiency. Each Grantor hereby waives, to the extent
permitted by applicable Laws, all rights of redemption, appraisement, valuation, stay, extension or moratorium now or hereafter in force under any applicable Laws in order to prevent or delay the enforcement of this Agreement or the absolute sale of
the Collateral or any portion thereof. In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which the Secured Party or the Secured Parties are legally entitled, the Grantors shall be jointly
and severally liable for the deficiency, together with interest thereon at the Default Rate, together with the costs of collection and the fees, charges and disbursements of counsel. Any surplus remaining after the full payment and satisfaction of
the Obligations shall be returned to the Grantors or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto. 

(j) Registration Rights. 

(i) If the Secured Party shall determine that in order to exercise its right to sell any or all of the Collateral it is
necessary or advisable to have such Collateral registered under the provisions of the Securities Act (any such Collateral, the “Restricted Securities Collateral”), the relevant Grantor will cause each applicable Issuer (and the
officers and directors thereof) that is a Grantor or a Subsidiary of a Grantor to (A) execute and deliver all such instruments and documents, and do or cause to be done all such other acts as may be, in the opinion of the Secured Party,
necessary or advisable to register such Restricted Securities Collateral, or that portion thereof to be sold, under the provisions of the Securities Act, (B) use its commercially reasonable efforts to cause the registration statement relating
thereto to become effective and to remain effective for a period of one year from the date of the first public offering of such Restricted Securities Collateral, or that portion thereof to be sold, and (C) make all amendments thereto and/or to
the related prospectus which, in the opinion of the Secured Party, are necessary or advisable, all in conformity with the requirements of the Securities Act and the rules and regulations of the Securities and Exchange Commission applicable thereto.
Each Grantor agrees to cause each applicable Issuer (and the officers and directors thereof) to comply with the provisions of the securities or “Blue Sky” laws of any and all jurisdictions which the Secured Party shall designate and to
make available to its security holders, as soon as practicable, an earnings statement (which need not be audited) which will satisfy the provisions of the Securities Act. 

  
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 (ii) Each Grantor agrees to use its commercially reasonable efforts to do or
cause to be done all such other acts as may be necessary to make such sale or sales of all or any portion of the Restricted Securities Collateral valid and binding and in compliance with any and all other applicable Laws. Each Grantor further agrees
that a breach of any of the covenants contained in this Section 7 will cause irreparable injury to the Secured Party, that the Secured Party has no adequate remedy at law in respect of such breach and, as a consequence, that each and every
covenant contained in this Section 7 shall be specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to assert any defenses against an action for specific performance of such covenants except for a defense
that no Event of Default has occurred under the Credit Agreement. 
 8. Rights of the Secured Party. 

(a) Power of Attorney. In addition to other powers of attorney contained herein, each Grantor hereby designates and
appoints the Secured Party, and each of its designees or agents, as attorney-in-fact of such Grantor, irrevocably and with power of substitution, with authority to take
any or all of the following actions upon the occurrence and during the continuance of an Event of Default: 
 (i) to demand,
collect, settle, compromise, adjust, give discharges and releases, all as the Secured Party may reasonably determine; 
 (ii)
to commence and prosecute any actions at any court for the purposes of collecting any Collateral and enforcing any other right in respect thereof; 

(iii) to defend, settle or compromise any action brought and, in connection therewith, give such discharge or release as the
Secured Party may deem reasonably appropriate; 
 (iv) to receive, open and dispose of mail addressed to a Grantor and
endorse checks, notes, drafts, acceptances, money orders, bills of lading, warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the goods giving rise to the Collateral of such Grantor on behalf of and in
the name of such Grantor, or securing, or relating to such Collateral; 
 (v) to sell, assign, transfer, make any agreement
in respect of, or otherwise deal with or exercise rights in respect of, any Collateral or the goods or services which have given rise thereto, as fully and completely as though the Secured Party were the absolute owner thereof for all purposes; 

(vi) to adjust and settle claims under any insurance policy relating thereto; 

(vii) to execute and deliver all assignments, conveyances, statements, financing statements, continuation financing statements,
security agreements, affidavits, notices and other agreements, instruments and documents that the Secured Party may determine necessary in order to perfect and maintain the security interests and liens granted in this Agreement and in order to fully
consummate all of the transactions contemplated herein; 

  
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 (viii) to institute any foreclosure proceedings that the Secured Party may deem
appropriate; 
 (ix) to sign and endorse any drafts, assignments, proxies, stock powers, verifications, notices and other
documents relating to the Collateral; 
 (x) to exchange any of the Pledged Equity or other property upon any merger,
consolidation, reorganization, recapitalization or other readjustment of the Issuer thereof and, in connection therewith, deposit any of the Pledged Equity with any committee, depository, transfer agent, registrar or other designated agency upon
such terms as the Secured Party may reasonably deem appropriate; 
 (xi) to vote for a shareholder resolution, or to sign an
instrument in writing, sanctioning the transfer of any or all of the Pledged Equity into the name of the Secured Party or one or more of the Secured Parties or into the name of any transferee to whom the Pledged Equity or any part thereof may be
sold pursuant to Section 7 hereof; 
 (xii) to pay or discharge taxes, liens, security interests or other encumbrances
levied or placed on or threatened against the Collateral; 
 (xiii) to direct any parties liable for any payment in
connection with any of the Collateral to make payment of any and all monies due and to become due thereunder directly to the Secured Party or as the Secured Party shall direct; 

(xiv) to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time in
respect of or arising out of any Collateral; 
 (xv) in the case of any Intellectual Property, execute and deliver, and have
recorded, any and all agreements, instruments, documents and papers as the Secured Party may request to evidence the security interests created hereby in such Intellectual Property and the goodwill and General Intangibles of such Grantor relating
thereto or represented thereby; and 
 (xvi) do and perform all such other acts and things as the Secured Party may
reasonably deem to be necessary, proper or convenient in connection with the Collateral. 
 This power of attorney is a power coupled with an
interest and shall be irrevocable until the date on which all Obligations are indefeasibly paid in full and the Commitments have terminated. The Secured Party shall be under no duty to exercise or withhold the exercise of any of the rights, powers,
privileges and options expressly or implicitly granted to the Secured 

  
 23 

 
Party in this Agreement, and shall not be liable for any failure to do so or any delay in doing so. The Secured Party shall not be liable for any act or omission or for any error of judgment or
any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except acts or omissions resulting from its gross negligence or willful
misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. This power of attorney is conferred on the Secured Party solely to protect, preserve and realize upon its
security interest in the Collateral and shall not impose any duty upon the Secured Party to exercise any such powers. 
 (b)
Assignment by the Secured Party. The Secured Party may from time to time assign the Obligations to a successor Secured Party appointed in accordance with the Credit Agreement, and such successor shall be entitled to all of the rights and
remedies of the Secured Party under this Agreement in relation thereto. 
 (c) The Secured Party’s Duty of Care.
Other than the exercise of reasonable care to assure the safe custody of the Collateral while being held by the Secured Party hereunder, the Secured Party shall have no duty or liability to preserve rights pertaining thereto, it being understood and
agreed that the Grantors shall be responsible for preservation of all rights in the Collateral, and the Secured Party shall be relieved of all responsibility for the Collateral upon surrendering it or tendering the surrender of it to the Grantors.
The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Secured Party accords its own
property, which shall be no less than the treatment employed by a reasonable and prudent agent in the industry, it being understood that the Secured Party shall not have responsibility for taking any necessary steps to preserve rights against any
parties with respect to any of the Collateral. In the event of a public or private sale of Collateral pursuant to Section 7 hereof, the Secured Party shall have no responsibility for (i) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relating to any Collateral, whether or not the Secured Party has or is deemed to have knowledge of such matters, or (ii) taking any steps to clean, repair or otherwise prepare the
Collateral for sale. 
 (d) Liability with Respect to Accounts. Anything herein to the contrary notwithstanding, each
of the Grantors shall remain liable under each of the Accounts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise to each such
Account. Neither the Secured Party nor any Secured Party shall have any obligation or liability under any Account (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the receipt by the Secured Party or any Secured
Party of any payment relating to such Account pursuant hereto, nor shall the Secured Party or any Secured Party be obligated in any manner to perform any of the obligations of a Grantor under or pursuant to any Account (or any agreement giving rise
thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto), to present or
file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or times. 

  
 24 

 (e) Releases of Collateral. 

(i) If any Collateral shall be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the
Credit Agreement, then the Secured Party, at the request and sole expense of such Grantor, shall promptly execute and deliver to such Grantor all releases and other documents, and take such other action, reasonably necessary for the release of the
Liens created hereby or by any other Collateral Document on such Collateral. 
 (ii) The Secured Party may release any of the
Pledged Equity from this Agreement or may substitute any of the Pledged Equity for other Pledged Equity without altering, varying or diminishing in any way the force, effect, lien, pledge or security interest of this Agreement as to any Pledged
Equity not expressly released or substituted, and this Agreement shall continue as a first priority lien on all Pledged Equity not expressly released or substituted. 

9. Application of Proceeds. After the exercise of remedies provided for in Section 8.02 of the Credit Agreement (or after the
Loans have automatically become immediately due and payable as set forth in Section 8.02 of the Credit Agreement) any payments in respect of the Obligations and any proceeds of the Collateral, when received by the Secured Party or any Secured
Party in cash or Cash Equivalents will be applied in reduction of the Obligations in such order of application as the Secured Party may elect. 

10. Continuing Agreement. 

(a) This Agreement shall remain in full force and effect until the Termination Date, at which time this Agreement shall be
automatically terminated (other than obligations under this Agreement which expressly survive such termination) and the Secured Party shall, upon the request and at the expense of the Grantors, forthwith release all of its liens and security
interests hereunder and shall execute and deliver all UCC termination statements and/or other documents reasonably requested by the Grantors evidencing such termination. 

(b) This Agreement shall continue to be effective or be automatically reinstated, as the case may be, if at any time payment,
in whole or in part, of any of the Obligations is rescinded or must otherwise be restored or returned by the Secured Party or any Secured Party as a preference, fraudulent conveyance or otherwise under any Debtor Relief Law, all as though such
payment had not been made; provided that in the event payment of all or any part of the Obligations is rescinded or must be restored or returned, all reasonable costs and expenses (including without limitation any reasonable legal fees and
disbursements) incurred by the Secured Party or any Secured Party in defending and enforcing such reinstatement shall be deemed to be included as a part of the Obligations. 

  
 25 

 11. Amendments; Waivers; Modifications, etc. This Agreement and the provisions hereof may
not be amended, waived, modified, changed, discharged or terminated except as set forth in Section 12 of the Credit Agreement. 
 12.
Successors in Interest. This Agreement shall be binding upon each Grantor, its successors and assigns and shall inure, together with the rights and remedies of the Secured Party and the Secured Parties hereunder, to the benefit of the Secured
Party and the Secured Parties and their successors and permitted assigns. 
 13. Notices. All notices required or permitted to be
given under this Agreement shall be in conformance with Section 9.02 of the Credit Agreement; provided that notices and communications to the Grantors shall be directed to the Grantors, at the address of the Borrowers set forth in the
Credit Agreement. 
 14. Counterparts. This Agreement may be executed in any number of counterparts, each of which where so executed
and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. Delivery of an executed
counterpart of a signature page of this Agreement by fax transmission or other electronic mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement. Without
limiting the foregoing, to the extent a manually executed counterpart is not specifically required to be delivered, upon the request of any party, such fax transmission or electronic mail transmission shall be promptly followed by such manually
executed counterpart. 
 15. Headings. The headings of the sections hereof are provided for convenience only and shall not in any way
affect the meaning or construction of any provision of this Agreement. 
 16. Governing Law; Submission to Jurisdiction; Venue; WAIVER OF
JURY TRIAL. 
 (a) This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of Minnesota, except to the extent that the perfection of the security interest hereunder, or the enforcement of any remedies hereunder, with respect to any particular Collateral shall be governed by the laws of
a jurisdiction other than the State of Minnesota. 
 (b) Venue. AT THE OPTION OF THE SECURED PARTY, THIS AGREEMENT AND
EACH OTHER LOAN DOCUMENT TO WHICH ANY GRANTOR IS A PARTY MAY BE ENFORCED IN ANY FEDERAL COURT OR MINNESOTA STATE COURT SITTING IN MINNEAPOLIS OR ST. PAUL, MINNESOTA; AND EACH GRANTOR CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND
WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT ANY GRANTOR COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, THE SECURED PARTY AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE
SUCH CASE DISMISSED WITHOUT PREJUDICE. 

  
 26 

 (c) WAIVER OF TRIAL BY JURY. THE GRANTORS AND THE SECURED PARTY EACH
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (i) UNDER THE LOAN DOCUMENTS OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN
CONNECTION THEREWITH OR (ii) ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 

17. Severability. If any provision of this Agreement is determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions. 

18. Entirety. This Agreement, the other Loan Documents and the other documents relating to the Obligations represent the entire
agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Loan Documents, any other documents relating to the
Obligations, or the transactions contemplated herein and therein. 
 19. Other Security. To the extent that any of the Obligations
are now or hereafter secured by property other than the Collateral (including, without limitation, real property and securities owned by a Grantor), or by a guarantee, endorsement or property of any other Person, then the Secured Party shall have
the right to proceed against such other property, guarantee or endorsement upon the occurrence of any Event of Default, and the Secured Party shall have the right, in its sole discretion, to determine which rights, security, liens, security
interests or remedies the Secured Party shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Obligations or any of the rights of the Secured Party or the
Secured Parties under this Agreement, under any other of the Loan Documents or under any other document relating to the Obligations. 
 20.
Joinder. At any time after the date of this Agreement, one or more additional Persons may become party hereto by executing and delivering to the Secured Party a Joinder Agreement in a form provided by the Secured Party. Immediately upon such
execution and delivery of such Joinder Agreement (and without any further action), each such additional Person will become a party to this Agreement as an “Grantor” and have all of the rights and obligations of a Grantor hereunder and this
Agreement and the schedules hereto shall be deemed amended by such Joinder Agreement. 

  
 27 

 21. Consent of Issuers of Pledged Equity. Any Loan Party that is an Issuer hereby
acknowledges, consents and agrees to the grant of the security interests in such Pledged Equity by the applicable Grantors pursuant to this Agreement, together with all rights accompanying such security interest as provided by this Agreement and
applicable Law, notwithstanding any anti-assignment provisions in any operating agreement, limited partnership agreement or similar organizational or governance documents of such Issuer. 

22. Joint and Several Obligations of Grantors. 

(a) Each of the Grantors is accepting joint and several liability hereunder in consideration of the financial accommodations to
be provided by the Secured Party under the Credit Agreement, for the mutual benefit, directly and indirectly, of each of the Grantors and in consideration of the undertakings of each of the Grantors to accept joint and several liability for the
obligations of each of them. 
 (b) Each of the Grantors jointly and severally hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a primary obligor, joint and several liability with the other Grantors with respect to the payment and performance of all of the Obligations, it being the intention of the parties hereto that (i) all
the Obligations shall be the joint and several obligations of each of the Grantors without preferences or distinction among them and (ii) a separate action may be brought against each Grantor to enforce this Agreement whether or not the
Borrower, any other Grantor or any other person or entity is joined as a party. 
 (c) Notwithstanding any provision to the
contrary contained herein, in any other of the Loan Documents, to the extent the obligations of a Grantor shall be adjudicated to be invalid or unenforceable for any reason (including, without limitation, because of any applicable state or federal
law relating to fraudulent conveyances or transfers) then the obligations of such Grantor hereunder shall be limited to the maximum amount that is permissible under applicable law (whether federal or state and including, without limitation, Debtor
Relief Laws). 
 23. Marshaling. The Secured Party shall not be required to marshal any present or future collateral security
(including but not limited to the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies
hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, each Grantor hereby agrees
that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of the Secured Party’s rights and remedies under this Agreement or under any other instrument creating or evidencing
any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the
benefits of all such laws. 

  
 28 

 24. Injunctive Relief. 

(a) Each Grantor recognizes that, in the event such Grantor fails to perform, observe or discharge any of its obligations or
liabilities under this Agreement or any other Loan Document, any remedy of law may prove to be inadequate relief to the Secured Party. Therefore, each Grantor agrees that the Secured Party, at the option of the Secured Party, shall be entitled to
temporary and permanent injunctive relief in any such case without the necessity of proving actual damages. 
 (b) The
Secured Party and each Grantor hereby agree that no such Person shall have a remedy of punitive or exemplary damages against any other party to a Loan Document and each such Person hereby waives any right or claim to punitive or exemplary damages
that they may now have or may arise in the future in connection with any dispute under this Agreement or any other Loan Document, whether such dispute is resolved through arbitration or judicially. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 29 

 Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and
delivered as of the date first above written. 
  

							
	GRANTORS:	 		 	AIR T, INC.
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	AIRCO, LLC
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	CSA AIR, INC.
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	GLOBAL AVIATION SERVICES, LLC
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	GLOBAL GROUND SUPPORT, INC.
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	JET YARD, LLC
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

							
		 		 	MOUNTAIN AIR CARGO, INC.
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	STRATUS AERO PARTNERS, LLC
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	AIR T GLOBAL LEASING, LLC
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	AIRCO SERVICES, LLC
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

  

							
		 		 	SPACE AGE INSURANCE COMPANY
				
		 		 	By:	 	 
		 		 	Name:	 	Candice L. Otey
		 		 	Title:	 	Secretary

 [Security Agreement Signature Page] 

			
	Accepted and agreed to as of the date first above written.
	
	 MINNESOTA BANK & TRUST,

as Secured Party

		
	By:	 	  

	Name:	 	Eric P. Gundersen
	Title:	 	Vice President

 [Security Agreement Signature Page] 

 SCHEDULE A 

Commercial Tort Claims in Excess of $50,000 

None. 

 EXHIBIT A 

[FORM OF] 
 IRREVOCABLE STOCK
POWER 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to
                     the following Equity Interests of
[                    ], a [                    ]
[corporation] [limited liability company]: 
 No. of Shares Certificate No. 

and irrevocably appoints
                             its agent and
attorney-in-fact to transfer all or any part of such Equity Interests and to take all necessary and appropriate action to effect any such transfer. The agent and attorney-in-fact may substitute and appoint one or more persons to act for him. 
  

	
	  

    

	By:                                     
                                         
                  
	Name:                                     
                                         
            
	Title:                                     
                                         
              

 EXHIBIT B 

[FORM OF] 
 NOTICE 

OF 
 GRANT OF SECURITY INTEREST 

IN 
 COPYRIGHTS 

United States Copyright Office 
 Ladies and Gentlemen: 

Please be advised that pursuant to the Security Agreement dated as of December 21, 2017 (as amended, modified, extended, restated,
renewed, replaced, or supplemented from time to time, the “Agreement”) by and among the Grantors party thereto (each an “Grantor” and collectively, the “Grantors”) and MINNESOTA BANK &
TRUST, as Secured Party (the “Secured Party”) for the Secured Parties referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon the copyrights and copyright applications shown
on Schedule 1 attached hereto to the Secured Party for the ratable benefit of the Secured Parties. 
 The undersigned Grantor and the
Secured Party, hereby acknowledge and agree that the security interest in the foregoing copyrights and copyright applications (a) may only be terminated in accordance with the terms of the Agreement and (b) is not to be construed as an
assignment of any copyright or copyright application. 
  

	
	Very truly yours,
	
	[GRANTOR]
	
	By:                                     
                                         
                  
	Name:                                     
                                         
            
	Title:                                     
                                         
              

  

	
	Acknowledged and Accepted:
	
	 MINNESOTA BANK & TRUST,
 as Secured
Party

	
	By:                                     
                                         
            
	Name:                                     
                                         
      
	Title:                                     
                                         
         

 EXHIBIT C 

[FORM OF] 
 NOTICE 

OF 
 GRANT OF SECURITY INTEREST 

IN 
 PATENTS 

United States Patent and Trademark Office 
 Ladies and
Gentlemen: 
 Please be advised that pursuant to the Security Agreement dated as of December 21, 2017 (as amended, modified, extended,
restated, renewed, replaced, or supplemented from time to time, the “Agreement”) by and among the Grantors party thereto (each an “Grantor” and collectively, the “Grantors”) and MINNESOTA
BANK & TRUST, as Secured Party (the “Secured Party”) for the Secured Parties referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon the patents and patent
applications shown on Schedule 1 attached hereto to the Secured Party for the ratable benefit of the Secured Parties. 
 The
undersigned Grantor and the Secured Party, hereby acknowledge and agree that the security interest in the foregoing patents and patent applications (a) may only be terminated in accordance with the terms of the Agreement and (b) is not to
be construed as an assignment of any patent or patent application. 
  

	
	Very truly yours,
	
	[GRANTOR]
	
	By:                                     
                                         
                  
	Name:                                     
                                         
            
	Title:                                     
                                         
              

  

	
	Acknowledged and Accepted:
	
	 MINNESOTA BANK & TRUST,
 as Secured
Party

	
	By:                                     
                                         
            
	Name:                                     
                                         
      
	Title:                                     
                                         
         

 EXHIBIT D 

[FORM OF] 
 NOTICE 

OF 
 GRANT OF SECURITY INTEREST 

IN 
 TRADEMARKS 

United States Patent and Trademark Office 
 Ladies and
Gentlemen: 
 Please be advised that pursuant to the Security Agreement dated as of December 21, 2017 (as amended, modified, extended,
restated, renewed, replaced, or supplemented from time to time, the “Agreement”) by and among the Grantors party thereto (each an “Grantor” and collectively, the “Grantors”) and MINNESOTA
BANK & TRUST, as Secured Party (the “Secured Party”) for the Secured Parties referenced therein, the undersigned Grantor has granted a continuing security interest in and continuing lien upon the trademarks and trademark
applications shown on Schedule 1 attached hereto to the Secured Party for the ratable benefit of the Secured Parties. 
 The
undersigned Grantor and the Secured Party, hereby acknowledge and agree that the security interest in the foregoing trademarks and trademark applications (a) may only be terminated in accordance with the terms of the Agreement and (b) is
not to be construed as an assignment of any trademark or trademark application. 
  

	
	Very truly yours,
	
	[GRANTOR]
	
	By:                                     
                                         
                  
	Name:                                     
                                         
            
	Title:                                     
                                         
              

  

	
	Acknowledged and Accepted:
	
	 MINNESOTA BANK & TRUST,
 as Secured
Party

	
	By:                                     
                                         
            
	Name:                                     
                                         
      
	Title:EX-10.7

 Exhibit 10.7 

GUARANTY 
 THIS GUARANTY, dated as of
December 21, 2017, is jointly and severally executed by the guarantors listed on the signature pages hereto (the “Original Guarantors”) or from time to time party hereto by execution of a joinder agreement (the
“Additional Guarantors”, and together with the Original Guarantors, the “Guarantors”), in favor of MINNESOTA BANK & TRUST, a Minnesota state banking corporation (together with its successors and assigns,
the “Lender”). 
 Section 1. Guaranty of Payment. For value received, and in consideration of any loan or other
financial accommodation heretofore or hereafter at any time made or granted to Air T, Inc., a Delaware corporation (hereinafter called the “Borrower”), by the Lender, the undersigned hereby jointly and severally unconditionally guarantee
the full and prompt payment when due, whether by acceleration or otherwise, and at all times thereafter, of all obligations of the Borrower to the Lender, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent,
or now or hereafter existing, or due or to become due, including, without limitation, all Obligations of the Borrower to the Lender pursuant to that certain Credit Agreement dated as of December 21, 2017 (as the same may be amended, modified,
supplemented, restated or replaced from time to time, the “Credit Agreement”; capitalized terms not otherwise defined herein shall have the meanings respectively ascribed to such terms in the Credit Agreement) by and between the Borrower
and the Lender (all such obligations being hereinafter collectively called the “Obligations”), and each of the undersigned further agrees to pay all expenses, including fees of attorneys (who may be employees of the Lender or any
Affiliate) and legal expenses, paid or incurred by the Lender in endeavoring to collect the Obligations, or any part thereof, and in enforcing this Guaranty. 

Section 2. Acceleration of the Time of Payment of Amount Payable Under the Guaranty. Each of the undersigned agrees that if any of
the undersigned shall be dissolved or shall be or become insolvent (however defined) or any of the undersigned voluntarily commences or there is commenced involuntarily against such undersigned a case under the United States Bankruptcy Code, the
full amount of all Obligations, whether due and payable or unmatured, shall be immediately due and payable without demand or notice thereof, to the extent provided in the Credit Agreement. 

Section 3. Security Interest in Deposits and Other Property. To secure all obligations of each of the undersigned hereunder, the
Lender shall have a Lien upon and security interest in (and may, without demand or notice of any kind, at any time and from time to time when any amount shall be due and payable by such undersigned hereunder, appropriate and apply toward the payment
of such amount, in such order as the Lender may elect, any and all balances, credits, deposits (general or special, time or demand, provisional or final), accounts or moneys of or in the name of such undersigned now or hereafter with the Lender or
any Affiliate of the Lender and any and all property of every kind or description of or in the name of such undersigned now or hereafter with the Lender or any Affiliate of the Lender and any and all property of every kind or description of or in
the name of such undersigned now or hereafter, for any reason or purpose whatsoever, in the possession or control of, or in transit to, the Lender or any Affiliate of the Lender or bailee for any such Person. 

 Section 4. Continuing Guaranty. This Guaranty shall in all respects be a continuing,
absolute and unconditional Guaranty, and shall remain in full force and effect (notwithstanding, without limitation, the dissolution of any of the undersigned or that at any time or from time to time all Obligations may have been paid in full),
subject to discontinuance as to any of the undersigned only upon actual receipt by the Lender of written notice from such undersigned, or any person duly authorized and acting on behalf of such undersigned, of the discontinuance hereof as to such
undersigned; provided, however, that no such notice of discontinuance shall affect or impair any of the agreements and obligations of such undersigned hereunder with respect to any and all Obligations existing prior to the time of
actual receipt of such notice by the Lender, any and all Obligations created or acquired thereafter pursuant to any previous commitments made by the Lender, any and all extensions or renewals of any of the foregoing, any and all interest on any of
the foregoing, and any and all expenses paid or incurred by the Lender in endeavoring to collect any of the foregoing and in enforcing this Guaranty against such undersigned; and all of the agreements and obligations of such undersigned under this
Guaranty shall, notwithstanding any such notice of discontinuance, remain fully in effect until all such Obligations (including any extensions or renewals of any thereof) and all such interest and expenses shall have been paid in full. Any such
notice of discontinuance by or on behalf of any of the undersigned shall not affect or impair the obligations hereunder of any other of the undersigned. 

Section 5. Recission or Return of Payment on Obligations. The undersigned further jointly and severally agree that, if at any time
all or any part of any payment theretofore applied by the Lender to any of the Obligations is or must be rescinded or returned by the Lender for any reason whatsoever (including, without limitation, the insolvency, bankruptcy or reorganization of
the Borrower or any of the undersigned), such Obligations shall, for the purposes of this Guaranty, to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence, notwithstanding such application by
the Lender, and this Guaranty shall continue to be effective or be reinstated, as the case may be, as to such Obligations, all as though such application by the Lender had not been made. 

Section 6. Lender Permitted to Take Certain Actions. The Lender may, from time to time (but shall not be obligated to), whether
before or after any discontinuance of this Guaranty, at its sole discretion and without notice to the undersigned (or any of them), take any or all of the following actions: (a) retain or obtain a security interest in any property to secure any
of the Obligations or any obligation hereunder; (b) retain or obtain the primary or secondary obligation of any obligor or obligors, in addition to the undersigned, with respect to any of the Obligations; (c) extend or renew for one or
more periods (whether or not longer than the original period), alter or exchange any of the Obligations, or release or compromise any obligation of any of the undersigned hereunder or any obligation of any nature of any other obligor with respect to
any of the Obligations; (d) release its security interest in, or surrender, release or permit any substitution or exchange for, all or any part of any property securing any of the Obligations or any obligation hereunder, or extend or renew for
one or more periods (whether or not longer than the original period) or release, compromise, alter or exchange any obligations of any nature of any obligor with respect to any such property; and (e) resort to the undersigned (or any of them)
for payment of any of the Obligations, whether or not the Lender (i) shall have resorted to any property securing any 

  
 2 

 
of the Obligations or any obligation hereunder or (ii) shall have proceeded against the Borrower or any other of the undersigned or any other obligor primarily or secondarily obligated with
respect to any of the Obligations (all of the actions referred to in preceding clauses (i) and (ii) being hereby expressly waived by the undersigned). 

Section 7. Application of Payments. Any amounts received by the Lender from whatsoever source on account of the Obligations may be
applied by it toward the payment of such of the Obligations and in such order of application, as the Lender may from time to time elect. 

Section 8. Subordination. Except as the Lender may hereafter expressly consent in writing, the payment of all obligations of the
Borrower to the undersigned, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent or now or hereafter existing, as due or to become due (collectively, the “Guarantor Liabilities”) shall be postponed
and subordinated to the payment in full of all Obligations, and no payments or other distributions whatsoever in respect of any Guarantor Liabilities shall be made, nor shall any property or assets of the Borrower or any other person obligated on
the Obligations be applied to the purchase or other acquisition or retirement of any Guarantor Liabilities following the occurrence and during the continuance of any Event of Default. If any payment on the Guarantor Liabilities is prohibited from
being paid by operation of this Guaranty such payment shall be payable only after the payment in full of the Obligations and the termination of the Credit Agreement, and the Borrower’s failure to make a payment on the Guarantor Liabilities by
reason of this Guaranty shall not constitute an event of default on the Guarantor Liabilities. 
 Section 9. Waiver of Claims.
Until such time as this Guaranty shall have been discontinued as to all of the undersigned and the Lender shall have received payment of the full amount of all Obligations and of all obligations of the undersigned hereunder and the Credit Agreement
has been terminated, no payment made by or for the account of the undersigned (or any of them) pursuant to this Guaranty shall entitle any of the undersigned by subrogation or otherwise to any payment by the Borrower or from or out of any property
of the Borrower, and none of the undersigned shall exercise any right or remedy against the Borrower or any property of the Borrower by reason of an performance by such undersigned of this Guaranty. 

Section 10. Waiver of Notice and Other Matters. Each of the undersigned hereby expressly waives: (a) notice of the acceptance
by the Lender of this Guaranty; (b) notice of the existence or creation or non-payment of all or any of the Obligations; (c) presentment, demand, notice of dishonor, protest, and all other notices
whatsoever; and (d) all diligence in collection or protection of or realization upon the Obligations or any thereof, any obligation hereunder, or any security for or guaranty of any of the foregoing. 

Section 11. Assignment of Obligations. Subject to provisions of Credit Agreement, the Lender may, from time to time, whether
before or after any discontinuance of this Guaranty, without notice to the undersigned (or any of them), assign or transfer any or all of the Obligations or any interest therein; and, notwithstanding any such assignment or transfer or any subsequent
assignment or transfer thereof, such Obligations shall be and remain Obligations for the purposes of this Guaranty, and each and every immediate and successive assignee or transferee of any of the Obligations or of any interest therein shall, to the
extent of the interest of 

  
 3 

 
such assignee or transferee in the Obligations, be entitled to the benefits of this Guaranty to the same extent as if such assignee or transferee were the transferor; provided, that, unless the
Lender shall otherwise consent in writing, the Lender shall have an unimpaired right, prior and superior to that of any such assignee or transferee, to enforce this Guaranty, for the benefit of the Lender, as to those of the Obligations which the
Lender has not assigned or transferred. 
 Section 12. Information Concerning Borrower. Each of the undersigned hereby warrants
to the Lender that such undersigned now has and will continue to have independent means of obtaining information concerning the affairs, financial condition and business of the Borrower. The Lender shall not have any duty or responsibility to
provide the undersigned (or any of them) with any credit or other information concerning the affairs, financial condition or business of the Borrower, which may come into the Lender’s possession. 

Section 13. Waiver and Modifications. No delay on the part of the Lender in the exercise of any right or remedy shall operate as a
waiver thereof, and no single or partial exercise by the Lender of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy; nor shall any modification or waiver of any of the provisions of
this Guaranty be binding upon the Lender except as expressly set forth in a writing duly signed and delivered on behalf of the Lender. 

Section 14. Obligations Under Guaranty. No action of the Lender permitted hereunder shall in any way affect or impair the rights
of the Lender and the obligations of the undersigned under this Guaranty. For the purposes of this Guaranty, the Obligations shall include all Obligations of the Borrower to the Lender, notwithstanding any right or power of the Borrower or anyone
else to assert any claim or defense as to the invalidity or un enforceability of any such Obligation, and no such claim or defense shall affect or impair the obligations of the undersigned hereunder. The obligations of the undersigned under this
Guaranty shall be absolute and unconditional irrespective of any circumstance whatsoever which might constitute a legal or equitable discharge or defense of the undersigned (or any of them). Each of the undersigned hereby acknowledges that there are
no conditions to the effectiveness of this Guaranty. 
 Section 15. Successors. This Guaranty shall be binding upon each of the
undersigned, and upon the successors and assigns of such undersigned, and to the extent that the Borrower or any of the undersigned is either a partnership or a corporation, all references herein to the Borrower and to the undersigned, respectively,
shall be deemed to include any successor or successors, whether immediate or remote, to such partnership or corporation. 
 Section 16.
Joint and Several Obligation. If more than one party shall execute this Guaranty, the term “undersigned,” as used herein, shall mean all parties executing this Guaranty and each of them, and all such parties shall be jointly and
severally obligated hereunder. 
 Section 17. Governing Law. THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS GUARANTY
SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF. 

  
 4 

 Section 18. Consent to Jurisdiction. AT THE OPTION OF THE LENDER, THIS GUARANTY MAY
BE ENFORCED IN ANY FEDERAL COURT OR MINNESOTA STATE COURT SITTING IN MINNEAPOLIS, OR ST. PAUL, MINNESOTA; AND EACH OF THE UNDERSIGNED CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT
CONVENIENT. IN THE EVENT ANY OF THE UNDERSIGNED COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, THE
LENDER, AT ITS OPTION, SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE
DISMISSED WITHOUT PREJUDICE. 
 Section 19. Waiver of Jury Trial. EACH OF THE UNDERSIGNED HEREBY EXPRESSLY WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (a) UNDER THIS GUARANTY OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH, OR
(b) ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS GUARANTY, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. 

Section 20. Severability. Wherever possible, each provision of this Guaranty shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Guaranty shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or the remaining provisions of this Guaranty. In any action or proceeding involving any state organizational law, or any state or federal bankruptcy, insolvency, reorganization or other law affecting the rights of creditors
generally, if the obligations of any of the undersigned hereunder would otherwise be held or determined to be void, invalid or unenforceable on account of such undersigned’s liability under this Guaranty, then, notwithstanding any other
provision of this Guaranty to the contrary, the amount of such liability shall, without any further action by such undersigned, the Lender or any other Person, be automatically limited and reduced to the highest amount which is valid and enforceable
as determined in such action or proceeding. 
 Section 21. Captions. Section captions used in this Guaranty are for convenience
only, and shall not affect the construction of this Guaranty. 
 Section 22. Certain Representations and Warranties. Each of the
undersigned represents and warrants to the Lender that: (a) each of the representations and warranties contained in the Credit Agreement pertaining to such undersigned as a Subsidiary of the Borrower or as a Loan Party or words of like import
referring to such undersigned are true and correct; and (b) (i) the Borrower and each of the undersigned make up a related organization of various entities constituting a single economic and business enterprise so that the Borrower and all of
the undersigned share an identity of interests such that any benefit received by any one of them benefits the others; (ii) the Borrower and each of the undersigned render services for the benefit of the one another, purchases or sells and
supplies goods to or from or for the benefit of one another, makes 

  
 5 

 loans, advances and provides other financial accommodations to or for the benefit of one another;
(iii) in some cases, the Borrower and some of the undersigned have centralized accounting and legal service and common officers and directors; and (iv) while the Borrower and all of the undersigned operate as a single economic enterprise,
nothing contained in this subsection (b) should be construed or imply that the Borrower and each of the undersigned are not separate legal entities. 

Section 23. Additional Covenants. Each of the undersigned agree(s) to perform and observe the affirmative and negative covenants
respectively set forth in ARTICLE 6 and 7 of the Credit Agreement that apply to the undersigned as a Subsidiary of the Borrower or as a Loan Party and that such covenants are incorporated herein by reference as though fully set forth herein. 

Section 24. Counterparts. This Guaranty may be executed in any number of counterparts, each of which when so executed and
delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be necessary in making proof of this Guaranty to produce or account for more than one such counterpart. Delivery of an executed counterpart
of a signature page of this Guaranty by fax transmission or other electronic mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Guaranty. 

[SIGNATURE PAGES FOLLOW] 

  
 6 

 IN WITNESS WHEREOF, this guaranty has been duly executed by the undersigned as of the date first
written above. 
  

			
	AIRCO, LLC
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary
	
	CSA AIR, INC.
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary
	
	GLOBAL AVIATION SERVICES, LLC
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary
	
	GLOBAL GROUND SUPPORT, INC.
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary
	
	JET YARD, LLC
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary

 SIGNATURE PAGE: SUBSIDIARY GUARANTY (PAGE 1 OF 2) 

			
	MOUNTAIN AIR CARGO, INC.
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary
	
	STRATUS AERO PARTNERS, LLC
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary
	
	AIR T GLOBAL LEASING, LLC
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary
	
	AIRCO SERVICES, LLC
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary
	
	SPACE AGE INSURANCE COMPANY
		
	By:	 	  

	Name:	 	Candice L. Otey
	Title:	 	Secretary

 SIGNATURE PAGE: SUBSIDIARY GUARANTY (PAGE 2 OF 2)

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