Document:

Securities Purchase Agreement

 Exhibit 10.4 
 THE INDEBTEDNESS AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION AGREEMENT (THE “SUBORDINATION AGREEMENT”) DATED AS OF DECEMBER 31, 2007
AMONG SUNTRUST BANK, IN ITS CAPACITY AS ADMINISTRATIVE AGENT, THE SUBORDINATED CREDITORS LISTED ON THE SIGNATURE PAGES THEREOF, ABX HOLDINGS, INC., A DELAWARE CORPORATION, ABX AIR, INC., A DELAWARE CORPORATION, CHI ACQUISITION CORP., A FLORIDA
CORPORATION, AND THE SUBSIDIARY GUARANTORS LISTED ON THE SIGNATURE PAGES THEREOF, AS THE SAME MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME IN ACCORDANCE WITH ITS TERMS, AND EACH HOLDER OF THIS INSTRUMENT OR AGREEMENT, BY ITS
ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE SUBORDINATION AGREEMENT. TO THE EXTENT ANY TERM, PROVISION, COVENANT, AGREEMENT OR CONDITION HEREIN CONFLICTS WITH OR OTHERWISE CONTRADICTS ANY OF THE TERMS OR PROVISIONS OF
THE SUBORDINATION AGREEMENT, THE TERMS AND PROVISIONS OF THE SUBORDINATION AGREEMENT SHALL CONTROL. 
 SECURITIES PURCHASE AGREEMENT

 SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of December 31, 2007, by and among ABX
Holdings, Inc., a Delaware corporation, with headquarters located at 145 Hunter Drive, Wilmington, Ohio 45117 (“ABX Holdings”), ABX Air, Inc., a Delaware corporation and a wholly owned subsidiary of ABX Holdings with headquarters
located at 145 Hunter Drive, Wilmington, Ohio 45117 (“ABX Air” and together with ABX Holdings, the “Companies”), and the investors listed on the Schedule of Buyers attached hereto (individually, a
“Buyer” and collectively, the “Buyers”). 
 WHEREAS: 
 A. The Companies, CHI Acquisition Corp., a wholly owned subsidiary of ABX Holdings (“Acquisition”), Cargo Holdings International, Inc.
(“CHI”), the Buyers and certain other persons named therein entered into a Stock Purchase Agreement dated as of November 1, 2007 (the “Stock Purchase Agreement”), pursuant to which Acquisition will purchase
from the Buyers and the other holders of shares of capital stock, options and/or warrants to purchase capital stock of CHI, all of the outstanding shares of capital stock, options and warrants of CHI. 
 B. The Companies believe that DHL International, Inc. (“DHL”) may assert that the consummation of the transactions contemplated by the
Stock Purchase Agreement and the related merger of Acquisition into CHI (the “Merger”) results in DHL having the right to demand prepayment of that certain First Non-Negotiable Promissory Note dated as of August 15, 2003 made
by ABX Air in favor of Airborne, Inc. in the original principal amount of $92,948,714, with a principal balance outstanding as of December 31, 2007 of $92,275,656 (the “DHL Note”). 
 C. In connection with the transactions contemplated by the Stock Purchase Agreement, contemporaneously with the execution and delivery of this Agreement,
each of the Companies, each of the Buyers and Wells Fargo Bank, National Association, as escrow agent (the “Escrow Agent”) are entering into an Escrow Agreement (the “Escrow Agreement”), pursuant to which, among
other things, on the date hereof the Buyers will deposit or cause to be deposited into an escrow account (the “Escrow Account”) the aggregate amount of $61,000,000, for the purpose of providing a source of financing to the Companies
in the event that, prior to the Funding Deadline (as defined in the Escrow Agreement), ABX Air receives from DHL a written demand for prepayment of all of the outstanding principal and accrued interest under the DHL Note (the “DHL Note
Refinancing”). 
 D. In anticipation of the possible DHL Note Refinancing, ABX Holdings has authorized a new series of senior
subordinated convertible notes of ABX Holdings, in the form attached hereto as Exhibit A (the “ABX Holdings Senior Convertible Notes”), which ABX Holdings Senior Convertible Notes shall be convertible into ABX Holding’s
common stock, par value $0.01 per share (the “Common Stock”) (as converted, the “Conversion Shares”), in accordance with the terms of the ABX Holdings Senior Convertible Notes, and (ii) ABX Air has
authorized a new series of senior notes of ABX Air, in the form attached hereto as Exhibit B 

 
(the “ABX Air Senior Notes” and together with the ABX Holdings Senior Convertible Notes, the “Notes,” and the Notes
together with the Conversion Shares, the “Securities”). 
 E. Subject to the satisfaction of the conditions set forth in
Sections 6 and 7 of this Agreement, (i) each Buyer wishes to purchase, and ABX Holdings wishes to sell, upon the terms and conditions stated in this Agreement, that aggregate principal amount of the ABX Holdings Senior Convertible Notes set
forth opposite such Buyer’s name in column (3) on the Schedule of Buyers attached hereto (which aggregate amount for all Buyers shall be $20,500,000), and (ii) each Buyer wishes to purchase, and ABX Air wishes to sell, upon the terms
and conditions stated in this Agreement, that aggregate principal amount of the ABX Air Senior Notes set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers attached hereto (which aggregate amount for all Buyers shall
be $40,500,000); 
 F. Contemporaneously with the execution and delivery of this Agreement, (i) ABX Holdings is executing (but not
dating) and delivering to the Escrow Agent the original ABX Holdings Senior Convertible Notes to be issued to each of the Buyers at the Closing (as defined below), (ii) ABX Air is executing (but not dating) and delivering to the Escrow Agent
the original ABX Air Senior Notes to be issued to each of the Buyers at the Closing, (iii) ABX Holdings and the Buyers are executing (but not dating) and delivering to the Escrow Agent a Registration Rights Agreement in the form attached hereto
as Exhibit C (the “Registration Rights Agreement”), pursuant to which ABX Holdings will agree to provide certain registration rights with respect to the Registrable Securities (as defined in the Registration Rights Agreement)
under the Securities Act of 1933, as amended (the “1933 Act”) and the rules and regulations promulgated thereunder, (iv) ABX Holdings and certain direct or indirect subsidiaries of ABX Holdings and ABX Air are executing (but
not dating) and delivering to the Escrow Agent a Guaranty, substantially in the form attached hereto as Exhibit D (the “Senior Note Guaranty”), pursuant to which ABX Holdings and the direct or indirect subsidiaries of ABX
Holdings or ABX Air signatory thereto will agree to guaranty the obligations of ABX Air under the ABX Air Senior Notes, and (v) ABX Air and certain other direct or indirect subsidiaries of ABX Holdings are executing (but not dating) and
delivering to the Escrow Agent a Guaranty, substantially in the form attached hereto as Exhibit E (the “Senior Convertible Note Guaranty” and, together with the Senior Note Guaranty, each a “Guaranty” and
collectively, the “Guarantees”), pursuant to which ABX Air and the other direct or indirect subsidiaries of ABX Holdings signatory thereto will agree to guaranty the obligations of ABX Holdings under the ABX Holdings Senior
Convertible Notes. 
 G. Each of the Companies and each Buyer is executing and delivering this Agreement in reliance upon the exemption from
securities registration afforded by Section 4(2) of the 1933 Act, and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the
1933 Act. 
 NOW, THEREFORE, the Companies and each Buyer hereby agree as follows: 
 1. PURCHASE AND SALE OF NOTES.  
 (a) Purchase of Notes. 
 (i) Notes. Subject to the satisfaction of the conditions set forth in Sections 6 and 7
below, (A) ABX Holdings shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from ABX Holdings on the Closing Date (as defined below), a principal amount of ABX Holdings Senior Convertible Notes as
is set forth opposite such Buyer’s name in column (3) on the Schedule of Buyers, and (B) ABX Air shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from ABX Air on the Closing Date, a
principal amount of ABX Air Senior Notes as is set forth opposite such Buyer’s name in column (4) on the Schedule of Buyers (the “Closing”). 
 (ii) Closing. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York City time, on the date, if any, on which the Escrow Agent is required to distribute the Escrow
Funds (as defined in the Escrow Agreement) to DHL pursuant to the terms of the Escrow Agreement, at the offices of Robinson & Cole LLP, 885 Third Avenue, New York, New York 10022, or at such other place as may be mutually agreeable to the
parties. 
  

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 (iii) Purchase Price. The aggregate purchase price for the Notes to be purchased by each such
Buyer at the Closing (the “Purchase Price”) shall be the amount set forth opposite each Buyer’s name in column (5) of the Schedule of Buyers. Each Buyer shall pay $1,000 for each $1,000 of principal amount of Notes to be
purchased by such Buyer at the Closing. 
 (b) Form of Payment. On the Closing Date, (i) each Buyer shall pay, or cause to be
paid out of the Escrow Account, its Purchase Price to ABX Holdings or ABX Air, as applicable, for the Notes to be issued and sold to such Buyer at the Closing, by wire transfer of immediately available funds in accordance with the Companies’
written wire instructions and (ii) ABX Holdings and ABX Air, as applicable, shall deliver, or cause to be delivered by the Escrow Agent, to each Buyer the applicable Notes which such Buyer is then purchasing hereunder duly executed on behalf of
ABX Holdings or ABX Air, as applicable, and registered in the name of such Buyer or its designee. 
 2. BUYER’S REPRESENTATIONS AND
WARRANTIES. Each Buyer represents and warrants with respect to only itself that: 
 (a) No Sale or Distribution. Such Buyer is
acquiring the Notes and upon conversion of the ABX Holdings Senior Convertible Notes will acquire the Conversion Shares issuable upon conversion of the ABX Holdings Senior Convertible Notes for its own account and not with a view towards, or for
resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act; provided, however, that by making the representations herein, such Buyer does not agree to hold any of the
Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act and pursuant to the applicable terms of
the Transaction Documents (as defined in Section 3(b)). Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities. 
 (b) Accredited Investor Status. Such Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 (c) Reliance on Exemptions. Such Buyer understands that the Securities are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state securities laws and that the Companies are relying in part upon the truth and accuracy of, and such Buyer’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of such Buyer to acquire the Securities. 
 (d) Information. Such Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of
the Companies and materials relating to the offer and sale of the Securities that have been requested by such Buyer. Such Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Companies. Neither such inquiries
nor any other due diligence investigations conducted by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect such Buyer’s right to rely on the Companies’ representations and warranties contained herein.
Such Buyer understands that its investment in the Securities involves a high degree of risk and is able to afford a complete loss of such investment. Such Buyer has sought such accounting, legal and tax advice as it has considered necessary to make
an informed investment decision with respect to its acquisition of the Securities. 
 (e) No Governmental Review. Such Buyer
understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor
have such authorities passed upon or endorsed the merits of the offering of the Securities. 
 (f) Transfer or Resale. Such Buyer
understands that except as provided in the Registration Rights Agreement: (i) the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or
transferred unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the Companies an opinion of counsel, in a generally acceptable form (it being agreed that in-house counsel shall be acceptable), to the
effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) such Buyer provides the Companies with reasonable assurance that such Securities can be
sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act, as amended, (or a successor rule thereto) (collectively, “Rule 144”); 

  

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(ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not
applicable, any resale of the Securities under circumstances in which the seller (or the Person (as defined in Section 3(s)) through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require
compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Companies nor any other Person is under any obligation to register the Securities under the 1933 Act or any state
securities laws or to comply with the terms and conditions of any exemption thereunder. The Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge of
Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the Companies with any notice thereof or otherwise make any delivery to the
Companies pursuant to this Agreement or any other Transaction Document (as defined in Section 3(b)), including without limitation, this Section 2(f). 
 (g) Legends. Such Buyer understands that the certificates or other instruments representing the Notes, and until such time as the resale of the Conversion Shares have been registered under the 1933 Act as
contemplated by the Registration Rights Agreement, the stock certificates representing the Conversion Shares, except as set forth below, shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in
substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates): 
 [NEITHER THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM (IT BEING AGREED THAT IN-HOUSE COUNSEL SHALL BE ACCEPTABLE), THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT AND ANY APPLICABLE
STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY
THE SECURITIES. 
 The legend set forth above shall be removed and the Companies shall issue a certificate without such legend to the holder of the
Securities upon which it is stamped, if, unless otherwise required by state securities laws, (i) such Securities are registered for resale under the 1933 Act, (ii) in connection with a sale, assignment or other transfer, such holder
provides the Company with an opinion of a law firm reasonably acceptable to the Companies (with in-house counsel being deemed acceptable), in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be
made without registration under the applicable requirements of the 1933 Act and any applicable state securities laws, or (iii) such holder provides the Companies with reasonable assurance that the Securities can be or have been sold, assigned
or transferred pursuant to Rule 144 or Rule 144A. 
 (h) Validity; Enforcement. This Agreement and the Registration Rights Agreement
have been duly and validly authorized, executed and delivered on behalf of such Buyer and shall constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in accordance with their respective terms, except as
such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies. 
 (i) No Conflicts. The execution, delivery and performance by such Buyer of this Agreement and
the Registration Rights Agreement and the consummation by such Buyer of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Buyer or (ii) conflict with, or constitute
a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Buyer is a
party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and 

  

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(iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a
material adverse effect on the ability of such Buyer to perform its obligations hereunder. 
 (j) Residency. Such Buyer is a resident
of that jurisdiction specified below its address on the Schedule of Buyers. 
 (k) Transfer. Without the prior consent of ABX Holdings
(which will not be unreasonably withheld or delayed), Buyers acknowledge and agree that the ABX Holdings Senior Convertible Notes may not be transferred in increments of less than $1,000,000 (provided, that such minimum amount shall not apply in the
case of (x) a transfer of the remaining Principal amount of the ABX Holdings Senior Convertible Notes held by a Buyer or (y) during the continuance of an Event of Default (as defined in the ABX Holdings Senior Convertible Notes)). Without
the prior consent of ABX Air (which will not be unreasonably withheld or delayed), Buyers acknowledge and agree that the ABX Air Senior Notes may not be transferred in increments of less than $1,000,000 (provided, that such minimum amount shall not
apply in the case of (x) a transfer of the remaining Principal amount of the ABX Air Senior Notes held by a Buyer or (y) during the continuance of an Event of Default (as defined in the ABX Air Senior Notes)). 
 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANIES. Each of the Companies, jointly and severally, represents and warrants to each of the Buyers
that, except as set forth in the Disclosure Schedule attached hereto (the “Disclosure Schedule”), the statements contained in this Section 3 are true and correct as of December 31, 2007. The Disclosure Schedule shall be
arranged in subsections corresponding to the lettered subsections contained in this Section 3. The disclosures in any subsection of the Disclosure Schedule shall qualify only the corresponding subsection in this Section 3. 
 (a) Organization and Qualification. Each of the Companies and their respective “Subsidiaries” (which for purposes of this
Agreement means (i) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time
stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by either of the Companies directly or indirectly through Subsidiaries and (ii) any
partnership, association, joint venture, limited liability company or other entity in which either of the Companies directly or indirectly through Subsidiaries, has more than a 50% equity interest; provided, however, that for purposes of this
Section 3 only, the term “Subsidiaries” shall not include CHI or any entity in which CHI, directly or indirectly, owned any of the capital stock or held any equity or similar interest immediately prior to the consummation of the
transactions contemplated by the Stock Purchase Agreement) are entities duly organized and validly existing and, to the extent legally applicable, in good standing under the laws of the jurisdiction in which they are formed, and have the requisite
power and authorization to own their properties and to carry on their business as now being conducted. Each of the Companies and their respective Subsidiaries is duly qualified as a foreign entity to do business and to the extent legally applicable,
is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not
have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on the business, properties, assets, operations, results of operations, condition (financial or otherwise) or
prospects of the Companies and their Subsidiaries, taken as a whole, or on the transactions contemplated hereby and the other Transaction Documents or by the agreements and instruments to be entered into in connection herewith or therewith, or on
the authority or ability of either of the Companies to perform its obligations under the Transaction Documents (as defined below). The Companies have no subsidiaries except as set forth on Section 3(a) of the Disclosure Schedule. The
Companies and their Subsidiaries do not own any voting stock (or other equity interests, including partnership interests then outstanding and normally entitled to vote in the election of directors, managers or trustees thereof) of any Person other
than sock or interests held in the ordinary course of their respective businesses or stock or interests in a Subsidiary listed on Section 3(a) of the Disclosure Schedule. 
 (b) Authorization; Enforcement; Validity. Each of the Companies has the requisite corporate power and authority to enter into and perform its
obligations under this Agreement, the Notes, the Registration Rights Agreement, the Senior Note Guaranty and the Senior Convertible Note Guaranty and each of the other agreements entered into by the parties hereto in connection with the transactions
contemplated by this Agreement (collectively, the “Transaction Documents”) and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery of the Transaction Documents by the Companies and the

  

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consummation by the Companies of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Notes and the
reservation for issuance and the issuance of the Conversion Shares issuable upon conversion of the ABX Holdings Senior Convertible Notes have been duly authorized by all necessary corporate action on the part of the Companies, and other than as set
forth in Section 3(e), no further filing, consent or authorization is required by either of the Companies, their respective Boards of Directors or their respective stockholders. This Agreement and the other Transaction Documents of even date
herewith have been duly executed and delivered by each of the Companies, and constitute the legal, valid and binding obligations of each of the Companies enforceable against each of the Companies in accordance with their respective terms, except as
such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. 
 (c) Issuance of Securities. The issuance of the Notes are duly authorized and are free from all taxes, liens
and charges with respect to the issue thereof. As of the Closing, a number of shares of Common Stock shall have been duly authorized and reserved for issuance which equals or exceeds 130% of the aggregate of the maximum number of shares of Common
Stock issuable upon conversion of the ABX Holdings Senior Convertible Notes. Upon conversion in accordance with the ABX Holdings Senior Convertible Notes, the Conversion Shares respectively, will be validly issued, fully paid and nonassessable and
free from all preemptive or similar rights, taxes, liens and charges with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. Assuming the accuracy of each of the representations and
warranties set forth in Section 2 of this Agreement, the offer and issuance by the Companies of the Securities is exempt from registration under the 1933 Act. 
 (d) No Conflicts. The execution, delivery and performance of the Transaction Documents by each of the Companies and the consummation by each of the Companies of the transactions contemplated hereby and thereby
(including, without limitation, the issuance of the Notes and reservation for issuance and issuance of the Conversion Shares) will not (i) result in a violation of any certificate of incorporation, certificate of formation, any certificate of
designations or other constituent documents of either of the Companies or any of their Subsidiaries, any capital stock of either of the Companies or any of their Subsidiaries or bylaws of either of the Companies or any of their Subsidiaries or
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which either of the Companies or any of their Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities
laws and regulations and the rules and regulations of the Nasdaq National Market (the “Principal Market”) applicable to either of the Companies or any of their Subsidiaries or by which any property or asset of either of the
Companies or any of their Subsidiaries is bound or affected, except in the case of each of clauses (ii) and (iii), such as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 

(e) Consents. Except as set forth on Section 3(e) of the Disclosure Schedule, neither of the Companies nor any of their
Subsidiaries is required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or
perform any of its obligations under or contemplated by the Transaction Documents, in each case in accordance with the terms hereof or thereof, except for the following consents, authorizations, orders, filings and registrations (none of which is
required to be filed or obtained before the Closing, except for clause (iv) below): (i) the filing with the SEC of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, (ii) the
filing of a notification form for the listing of additional shares of Common Stock for the Conversion Shares with the Principal Market, which shall be done pursuant to the rules of the Principal Market, (iii) the filing of a notice of Sale of
Securities on Form D with the SEC under Regulation D, and (iv) the filing of a Form 8-K pursuant to Section 4(i). The Companies and their Subsidiaries are unaware of any facts or circumstances that might prevent the Companies from
obtaining or effecting any of the registration, application or filings pursuant to the preceding sentence. ABX Holdings is not in violation of the listing requirements of the Principal Market and has no knowledge of any facts that would reasonably
lead to delisting or suspension of the Common Stock in the foreseeable future. 
 (f) Acknowledgment Regarding Buyer’s Purchase of
Securities. The Companies acknowledge that no Buyer is acting as a financial advisor or fiduciary of either of the Companies or any of their Subsidiaries (or in any similar capacity) with respect to the 

  

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Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by a Buyer or any of its representatives or agents in
connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Buyer’s purchase of the Securities. The Companies further represents to each Buyer that the Companies’ decision to
enter into the Transaction Documents has been based solely on the independent evaluation by the Companies and their representatives. 
 (g)
No General Solicitation; Placement Agent’s Fees. Neither of the Companies, nor any of their affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D) in connection with the offer or sale of the Securities. Neither of the Companies nor any of their Subsidiaries has engaged any placement agent or other agent in connection with the sale of the Securities. 
 (h) No Integrated Offering. Neither of the Companies, nor any of their Subsidiaries, nor any of their affiliates, nor any Person acting on their
behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of any of the Securities under the 1933 Act or cause this offering of the
Securities to be integrated with prior offerings by either of the Companies for purposes of the 1933 Act or any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated
quotation system on which any of the securities of either of the Companies are listed or designated. Neither of the Companies, nor any of their Subsidiaries, nor any of their affiliates, nor any Person acting on their behalf will take any action or
steps referred to in the preceding sentence that would require registration of any of the Securities under the 1933 Act or cause the offering of the Securities to be integrated with other offerings. 
 (i) Dilutive Effect. ABX Holdings understands and acknowledges that the number of Conversion Shares issuable upon conversion of the ABX Holdings
Senior Convertible Notes will increase in certain circumstances. ABX Holdings further acknowledges that its obligation to issue (i) Conversion Shares upon conversion of the ABX Holdings Senior Convertible Notes in accordance with this Agreement
and (ii) the ABX Holdings Senior Convertible Notes in accordance with this Agreement is, in each case, absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of
ABX Holdings. 
 (j) [Reserved.] 
 (k) SEC Documents; Financial Statements. During the three (3) years prior to the date hereof, the Companies has filed all reports, schedules, forms, statements and other documents required to be filed by them with the SEC
pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being
hereinafter referred to as the “SEC Documents”). As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Companies included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied,
during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial position of the Companies as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments). 
 (l) Absence of Certain Changes. Since the date of the latest audited financial
statements included within the SEC Documents, except as specifically disclosed in the SEC Documents or in Section 3(l) of the Disclosure Schedule, (i) there has been no event, occurrence or development that has had or that could
reasonably be expected to result in a Material Adverse Effect, (ii) neither of the Companies has incurred any liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities 

  

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incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Companies’
financial statements pursuant to U.S. generally accepted accounting principals or required to be disclosed in filings made with the SEC, (iii) the Companies have not altered their method of accounting or the identity of their auditors,
(iv) neither of the Companies has declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and
(v) neither of the Companies has issued any equity securities to any officer, director or affiliate, except pursuant to existing equity compensation plans of the Companies. Neither of the Companies has taken any steps to seek protection
pursuant to any bankruptcy law nor does either of the Companies have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact that would reasonably lead a
creditor to do so. The Companies and their Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be Insolvent (as
defined below). For purposes of this Section 3(l), “Insolvent” means, with respect to any Person (as defined in Section 3(r)), (i) the present fair saleable value of such Person’s assets is less than the amount
required to pay such Person’s total Indebtedness (as defined in Section 3(r)), (ii) such Person is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and
matured, (iii) such Person intends to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature or (iv) such Person has unreasonably small capital with which to conduct the business in which it
is engaged as such business is now conducted and is proposed to be conducted. 
 (m) Conduct of Business; Regulatory Permits. Neither
of the Companies nor their Subsidiaries is in violation of any term of or in default under its Certificate of Incorporation or Bylaws, as amended and as in effect on the date hereof (the “Bylaws”), or any certificate of designations
of any outstanding series of preferred stock of either of the Companies, or their organizational charter or bylaws, respectively. Neither of the Companies nor any of their Subsidiaries is in violation of any judgment, decree or order or any statute,
ordinance, rule or regulation applicable to either of the Companies or their Subsidiaries, and neither of the Companies nor any of their Subsidiaries will conduct its business in violation of any of the foregoing, except for possible violations
which could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Without limiting the generality of the foregoing, neither of the Companies is in violation of any of the rules, regulations or requirements
of the Principal Market or has knowledge of any facts or circumstances that would reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future. During the two (2) years prior to the date
hereof, (i) the Common Stock has been designated for quotation on the Principal Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market and (iii) neither of the Companies has received no
communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market. Each of the Companies and their Subsidiaries possess all certificates, authorizations and
permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material
Adverse Effect, and neither of the Companies nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit. 
 (n) Foreign Corrupt Practices. Neither of the Companies, nor any of their Subsidiaries, nor any director, officer, agent, employee or other Person
acting on behalf of either of the Companies or any of their Subsidiaries has, in the course of its actions for, or on behalf of, either of the Companies or any of their Subsidiaries (i) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in
violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or
employee. 
 (o) Sarbanes-Oxley Act. The Companies are in compliance with any and all applicable requirements of the Sarbanes-Oxley
Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof. 
 (p) Transactions With Affiliates. Except as set forth in the SEC Documents, none of the officers or directors of the Companies or any of their
Subsidiaries is presently a party to any transaction with either of the Companies or any of their Subsidiaries (other than for ordinary course services as officers or directors), including any contract, agreement or other arrangement providing for
the 

  

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furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any such officer or
director or, to the knowledge of the Companies, any corporation, partnership, trust or other entity in which any such officer, director, or employee has a substantial interest or is an officer, director, trustee or partner. 
 (q) Equity Capitalization. As of the date hereof, the authorized capital stock of ABX Holdings consists of 75,000,000 shares of Common Stock, of
which as of the date hereof, 62,678,856 shares are issued and outstanding, 3,000,000 shares are reserved for issuance pursuant to the ABX Holdings’ equity compensation plans and agreements, 4,767,442 shares are reserved for issuance upon
conversion of the ABX Holdings Senior Convertible Notes and no shares are reserved for issuance pursuant to other securities exercisable or exchangeable for, or convertible into, shares of Common Stock and 20,000,000 shares of preferred stock, par
value $0.01 per share, of which as of the date hereof no shares are issued and outstanding. As of the date hereof, the authorized capital stock of ABX Air consists of 1,000 shares of common stock, $0.01 par value per share, of which as of the date
hereof, 1,000 are issued and outstanding, all of which shares are owned beneficially and of record by ABX Holdings. All of such outstanding shares of each of the Companies have been, or upon issuance in accordance with their respective terms, will
be, validly issued and are fully paid and nonassessable. Except as disclosed above or in Section 3(q) of the Disclosure Schedule (or in the cases of (iii) and (iv) below, Section 3(r) of the Disclosure Schedule) or
except as created under the Transaction Documents: (i) none of either of the Companies capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by either of the Companies;
(ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of
either of the Companies or any of their Subsidiaries, or contracts, commitments, understandings or arrangements by which either of the Companies or any of their Subsidiaries is or may become bound to issue additional capital stock or options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock ; (iii) there are no outstanding debt
securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness in excess of $25,000,000, individually, or $25,000,000, in the aggregate from any one lender (together with such
lender’s affiliates) of either of the Companies or any of their Subsidiaries or by which either of the Companies or any of their Subsidiaries is or may become bound; (iv) there are no financing statements securing obligations in any
material amounts, either singly or in the aggregate, filed in connection with either of the Companies or any of their Subsidiaries; (v) there are no agreements or arrangements under which either of the Companies or any of their Subsidiaries is
obligated to register the sale of any of their securities under the 1933 Act (except pursuant to the Registration Rights Agreement); (vi) there are no outstanding securities or instruments of either of the Companies or any of their Subsidiaries
which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which either of the Companies or any of their Subsidiaries is or may become bound to redeem a security of either of the
Companies or any of their Subsidiaries; (vii) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (viii) neither of the Companies nor any of their
Subsidiaries has any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) neither of the Companies or any of their Subsidiaries has any liabilities or obligations required to be
disclosed in the SEC Documents but not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Companies’ or their Subsidiaries’ respective businesses and which, individually or in the aggregate, do not
or would not have a Material Adverse Effect. 
 (r) Indebtedness and Other Contracts. Except as disclosed in Section 3(r)
of the Disclosure Schedule, neither of the Companies nor any of their Subsidiaries (i) has any outstanding Indebtedness (as defined below) in excess of $25,000,000, individually, or $25,000,000, in the aggregate from any one lender (together
with such lender’s affiliates), (ii) is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected to
result in a Material Adverse Effect, (iii) is in violation of any term of or in default under any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not result, individually or in the
aggregate, in a Material Adverse Effect, or (iv) is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Companies’ officers, has or is expected to have a Material
Adverse Effect. For purposes of this Agreement: 
 (A) “Indebtedness” of any Person shall mean without duplication
(A) all indebtedness of such Person for borrowed money, (B) all obligations of such Person for the deferred purchase price of property or services (other than trade payables incurred in 

  

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the ordinary course of business of such Person; provided, that trade payables overdue by more than 120 days shall be included in this definition) and
all obligations of such Person under any conditional sale or other title retention agreement(s) relating to property acquired by such Person, (C) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments,
(D) all obligations of such Person under any lease of (or arrangement conveying the right to use) any property (whether real, personal or mixed) by that Person as lessee which, in conformity with GAAP, is classified and accounted for as a
capital lease on the balance sheet of that Person (a “Capital Lease”), in each case, taken at the amount thereof accounted for as liabilities in accordance with GAAP (“Capitalized Lease Obligations”), (E) all
obligations, contingent or otherwise, of such Person as an account party to reimburse any bank or other Person under acceptance, letter of credit or similar facilities, (F) all obligations of such Person to purchase, redeem, retire or otherwise
acquire for value any shares, interests, rights to purchase, warrants, options, participation or other equivalents of or interests in (however designated) equity, including any preferred stock, any limited or general partnership interest and any
limited liability company membership interest (“Capital Stock”) of such Person other than such repurchases from present or former directors, officers or employees made pursuant to stock option agreements, (G) all Contingent
Obligations (as defined below) of such Person, (H) off-balance sheet liability retained in connection with asset securitization programs, “synthetic leases” (meaning any lease of goods or other property, whether real or personal,
which is treated as an operating lease under GAAP and as a loan or financing for U.S. income tax purposes), sale and leaseback transactions or other similar obligations arising with respect to any other transaction but which does not constitute a
liability on the consolidated balance sheet of such Person and its Subsidiaries, (I) every obligation of any other third Person secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured
by) any Lien (as defined in the Notes) on property or other assets (including, without limitation, accounts and contract rights) of such Person, even though such Person has not assumed or become liable for the payment or performance of such
obligation and (J) all obligations of such Person in respect of any commodity, interest rate or currency swap, cap, floor, collar, forward agreement or other exchange or protection agreements or any option with respect to any such transaction
(“Hedge Agreements”) (after giving effect to any applicable netting provisions under such Hedge Agreement); for the avoidance of doubt, clause (J) shall not include any underlying notional amounts. The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other
relationship with such entity, except to the extent the terms of such Indebtedness expressly provide that such Person is not liable therefor. The “amount” or “principal amount” of any Indebtedness at any time of determination
represented by (1) any obligation under clause (I) shall be the lesser of (i) the amount of the applicable obligation and (ii) the Fair Market Value of the property to which such obligation relates (where “Fair Market
Value” shall mean the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving distress or necessity of either party, determined in good faith by the chief financial officer or Board of
Directors (or similar governing body) of the Person required to make such determination, (2) any Indebtedness, issued at a price that is less than the principal amount at maturity thereof, shall be the accreted value at such time of
determination, (3) any Capitalized Lease Obligation shall be the amount that is required to be capitalized in accordance with GAAP, (4) any “synthetic lease” under clause (H) shall be the stipulated loss value, termination
value or other equivalent amount, (5) any Hedge Agreement shall be the maximum amount of any termination or loss payment required to be paid by such Person if such agreement were, at the time of determination, to be terminated by reason of any
event of default or early termination event thereunder, whether or not such event of default or early termination event has in fact occurred, and (6) any Contingent Obligation shall be an amount equal to the stated or determinable amount of the
primary obligation in respect of which such guaranty or other contingent obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder);

 (B) “Contingent Obligations” shall mean as to any Person (the “guaranteeing person”), any obligation of
(a) the guaranteeing person or (b) another Person (including, without limitation, any bank under any letter of credit) to induce the creation of which the guaranteeing person has issued a reimbursement, counterindemnity or similar
obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in any manner,
whether directly or indirectly, including, without limitation, any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor,
(ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or
(iv) otherwise to assure or hold 

  

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harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Contingent Obligation shall
not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Contingent Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or
determinable amount of the primary obligation in respect of which such Contingent Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Contingent
Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Contingent Obligation shall be such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by the Borrowers in good faith; and 
 (C)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
 (s) Absence of Litigation. Except as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before or by
the Principal Market, any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Companies, threatened against either of the Companies or any of their Subsidiaries, the Common Stock or any
officer or director of either of the Companies or any of their Subsidiaries, which (a) seeks either damages in excess of $10,000,000 or equitable relief or (b) in any manner challenges or seeks to prevent, enjoin, alter or delay the
transactions contemplated by this Agreement. 
 (t) Insurance. Each of the Companies and each of their Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Companies and their Subsidiaries are engaged. Neither
of the Companies nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not have a Material Adverse Effect. 
 (u) Employee Relations. (i) Except as disclosed in
Section 3(u) of the Disclosure Schedule, neither of the Companies nor any of their Subsidiaries is a party to any collective bargaining agreement or employs any member of a union. The Companies and their Subsidiaries believe that
their relations with their employees are good. No executive officer of either of the Company or any of their Subsidiaries (as defined in Rule 501(f) of the 1933 Act) has notified either of the Companies or any such Subsidiary that such officer
intends to leave either of the Companies or any such Subsidiary or otherwise terminate such officer’s employment with either of the Companies or any such Subsidiary. No executive officer of the Companies or any of their Subsidiaries, is, or is
now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and, to
the knowledge of the Companies, the continued employment of each such executive officer does not subject either of the Companies or any of its Subsidiaries to any liability with respect to any of the foregoing matters. 
 (ii) Each of the Companies and their Subsidiaries are in compliance with all federal, state, local and foreign laws and regulations respecting labor,
employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect. 
 (v) Title. Except as disclosed in the SEC Documents or in Section 3(v) of the Disclosure Schedule, each
of the Companies and its Subsidiaries have good and marketable title to all personal property owned by them which is material to the business of the Companies and their Subsidiaries, in each case free and clear of all liens, encumbrances and defects
such as are described in the SEC Documents except as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Any real property and facilities held under lease by either of the Companies and any of
their Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 
 (w) Intellectual Property Rights. Each of the Companies and their Subsidiaries own or possess adequate rights or licenses to use all trademarks,
service marks and all applications and registrations therefor, trade names, patents, patent rights, copyrights, original works of authorship, inventions, trade secrets and other intellectual property rights (“Intellectual Property
Rights”) necessary to conduct their respective businesses as now conducted except as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 
  

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 (x) Environmental Laws. Each of the Companies and their Subsidiaries (i) are in compliance
with any and all Environmental Laws (as hereinafter defined), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or approval except where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the
aggregate, a Material Adverse Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air,
surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes
(collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all
authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder. 
 (y) Subsidiary Rights. Except as set forth in Section 3(y) of the Disclosure Schedule, each of the Companies or one of its
Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Companies or such Subsidiary. 

(z) Tax Status. Each of the Companies and each of their Subsidiaries (i) has made or filed all foreign, federal and state income and all
other tax returns, reports and declarations required to be made or filed as of December 31, 2007 by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in
amount, and are shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes for periods
subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the Companies know of no basis for any such claim,
except as described in the SEC Documents. 
 (aa) Internal Accounting and Disclosure Controls. ABX Holdings maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with
management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any
difference. ABX Holdings maintains disclosure controls and procedures (as such term is defined in Rule 13a-14 under the 1934 Act) that are effective in ensuring that information required to be disclosed by ABX Holdings in the reports that it files
or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed in to ensure that information
required to be disclosed by ABX Holdings in the reports that it files or submits under the 1934 Act is accumulated and communicated to ABX Holdings’ management, including its principal executive officer or officers and its principal financial
officer or officers, as appropriate, to allow timely decisions regarding required disclosure. 
 (bb) Ranking of Notes. Other than
Permitted Senior Indebtedness (as defined in the Notes), no Indebtedness of either of the Companies is senior to or ranks pari passu with the Notes in right of payment, whether with respect to payment of redemptions, interest, damages or upon
liquidation or dissolution or otherwise. Other than in connection with Permitted Liens (as defined in the Notes), no Indebtedness of either of the Companies is secured by any assets of either of the Companies. 
 (cc) Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between either of the Companies and an
unconsolidated or other off balance sheet entity that is required to be disclosed by ABX Holdings in its 1934 Act filings and is not so disclosed or that otherwise would be reasonably likely to have a Material Adverse Effect. 
  

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 (dd) Investment Company Status. Neither of the Companies is, and upon consummation of the sale of
the Securities will be, an “investment company,” a company controlled by an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment
company” as such terms are defined in the Investment Company Act of 1940, as amended. 
 (ee) [Reserved] 
 (ff) Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be paid in
connection with the sale and transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid or provided for by the Companies, and all laws imposing such taxes will be or will have been complied with. 

(gg) Manipulation of Price. Neither of the Companies has, and to its knowledge no one acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of either of the Companies to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid
any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of either of the Companies. 
 (hh) Acknowledgement Regarding Buyers’ Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding, but
subject to compliance by the Buyers with applicable law and except to the extent as provided in any confidentiality or other agreement between a Buyer and either of the Companies, it is understood and acknowledged by the Companies (i) that none
of the Buyers have been asked by either of the Companies to agree, nor has any Buyer agreed with either of the Companies, to desist from purchasing or selling, long and/or short, securities of either of the Companies, or “derivative”
securities based on securities issued by either of the Companies or to hold the Securities for any specified term; (ii) that past or future open market or other transactions by any Buyer, including, without limitation, short sales or
“derivative” transactions, before or after the closing of this or future private placement transactions, may negatively impact the market price of either of the Companies’ publicly-traded securities; (iii) that any Buyer, and
counter parties in “derivative” transactions to which any such Buyer is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and (iv) that each Buyer shall not be deemed to have any
affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Companies further understand and acknowledge that (a) one or more Buyers may engage in hedging activities at various times
during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the Conversion Shares deliverable with respect to Securities are being determined and (b) such hedging activities (if
any) could reduce the value of the existing stockholders’ equity interests in the Companies at and after the time that the hedging activities are being conducted. 
 (ii) U.S. Real Property Holding Corporation. Neither of the Companies is, nor has either of the Companies ever been, a U.S. real property holding corporation within the meaning of Section 897 of the
Internal Revenue Code of 1986, as amended, and the Companies shall so certify upon any Buyer’s request. 
 (jj) FAA and DOT
Compliance. Except as provided in the SEC Documents, each of the Companies and each of the Subsidiaries are conducting their business in compliance with the rules and regulations of the United States Federal Aviation Administration (the
“FAA”) and the United States Department of Transportation (the “DOT”) and all applicable federal, state and local laws, orders, rules, regulations, directives, decrees and judgments of each of the jurisdictions in
which it is conducting business, including, without limitation, all applicable local, state and federal laws and regulations governing health, sanitation, safety, zoning and land use, except where the failure to be so in compliance would not have a
Material Adverse Effect. There are no pending or threatened administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or proceedings before the FAA or the DOT
or any other federal, state, local or foreign governmental bodies that involve or effect either of the Companies or any of their Subsidiaries which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding,
would be reasonably likely to result in a Material Adverse Effect. 
  

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 (kk) Trade Secrets. Each of the Companies has taken reasonable steps in accordance with normal
industry practice to protect its rights in the Companies’ confidential information and trade secrets, the secrecy of which is material to the business of the Companies as described in the SEC Documents. 
 (ll) Disclosure. All disclosure provided to the Buyers regarding the Companies and their Subsidiaries, their business and the transactions
contemplated hereby furnished by or on behalf of the Companies, was true and correct on the date provided and did not on the date provided (or as of the date or dates shown on the disclosure) contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Except as set forth on Section 3(ll) of the Disclosure Schedule, no event or
circumstance has occurred or information exists with respect to either of the Companies or any of its Subsidiaries or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation,
requires public disclosure or announcement by ABX Holdings but which has not been so publicly announced or disclosed. 
 (mm) No
Undisclosed Events, Liabilities, Developments or Circumstances. Except as disclosed on Section 3(mm) of the Disclosure Schedule, no event, liability, development or circumstance has occurred since January 1, 2007 or exists, or
is contemplated to occur, with respect to either of the Companies, their Subsidiaries or their respective business, properties, prospects, operations or financial condition, that would be required to be disclosed by the Companies under applicable
securities laws on a registration statement filed with the SEC relating to an issuance and sale by ABX Holdings of its Common Stock and which has not been publicly announced. 
 Each of the Buyers acknowledges and agrees that the Companies have not made and are not making any representations or warranties with respect to the transactions contemplated hereby other than those specifically set
forth in the Transaction Documents. 
 4. COVENANTS.  
 (a) [Reserved.] 
 (b) Form D and Blue Sky. Each of the Companies agrees to file a Form D with respect
to the Securities as required under Regulation D and to provide a copy thereof to each Buyer promptly after such filing. Each of the Companies shall, on or before the Closing Date, take such action as the Companies shall reasonably determine is
necessary in order to obtain an exemption for or to qualify the Securities for sale to the Buyers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an
exemption from such qualification), and shall provide evidence of any such action so taken to the Buyers on or prior to the Closing Date. Each of the Companies shall make all filings and reports relating to the offer and sale of the Securities
required under applicable securities or “Blue Sky” laws of the states of the United States following the Closing Date. 
 (c)
Reporting Status. Until the date on which none of the ABX Holdings Senior Convertible Notes is outstanding (the “Reporting Period”), ABX Holdings shall timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed with the SEC pursuant to the 1934 Act, and ABX Holdings shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and
regulations thereunder would permit such termination. 
 (d) Use of Proceeds. The Companies will use the proceeds from the sale of the
Securities solely to repay outstanding principal and interest on the DHL Note. 
 (e) Financial Information. ABX Holdings agrees to
send the following to each Investor (as defined in the Registration Rights Agreement) during the Reporting Period unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, within one
(1) Business Day after the filing thereof with the SEC, (i) a copy of its Annual Reports on Form 10-K, any Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any registration statements (other than on Form S-8) or
amendments filed pursuant to the 1933 Act, (ii) within two (2) Business Days thereof, facsimile or e-mailed copies of all press releases issued by either of the Companies or any of their Subsidiaries, and (iii) copies of any notices
and other information made available or given to the stockholders of the Company generally, contemporaneously with the making available or giving thereof to the stockholders. As used herein, “Business Day” means any day other than
Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed. 
  

 14 

 (f) Listing. ABX Holdings shall promptly secure the listing of all of the Registrable Securities
(as defined in the Registration Rights Agreement) upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject to official notice of issuance) and shall maintain, in accordance
with the ABX Holdings Senior Convertible Notes, such listing of all Registrable Securities from time to time issuable under the terms of the Transaction Documents. ABX Holdings shall maintain the Common Stocks’ authorization for quotation on
the Principal Market or on any Eligible Market (as defined in the Notes). Neither of the Companies nor any of their Subsidiaries shall take any action which would be reasonably expected to result in the delisting or suspension of the Common Stock on
the Principal Market or on any Eligible Market, as applicable. The Companies shall pay all fees and expenses in connection with satisfying their obligations under this Section 4(f). 
 (g) Fees. On the date hereof, the Companies shall pay, or cause to be paid, the fees and expenses of Robinson & Cole LLP, counsel to
Massachusetts Mutual Life Insurance Company (“Mass Mutual”) (a Buyer), in connection with the transactions contemplated by the Escrow Agreement, this Agreement and the other Transaction Documents through the date of this Agreement.
In addition, whether or not the transactions contemplated by this Agreement and the other Transaction Documents are consummated, the Companies shall pay, or cause to be paid (or reimburse to the extent already paid by Mass Mutual), all reasonable
costs and expenses incurred by Mass Mutual after the date of this Agreement in connection with the Escrow Agreement, this Agreement and the other Transaction Documents (including all reasonable legal fees and disbursements in connection therewith,
documentation and implementation of the transactions contemplated by the Escrow Agreement, this Agreement and the other Transaction Documents and due diligence in connection therewith), which amount shall be non-accountable and paid by the Companies
at the Closing or upon termination of this Agreement (in addition to any other expense amounts paid to any Buyer prior to the date of this Agreement). The Companies shall be responsible for the payment of any placement agent’s fees, financial
advisory fees, or broker’s commissions (other than for persons engaged by any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby, if any. The Companies shall pay, and hold each Buyer harmless
against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. 
 (h) Pledge of Securities. The Companies acknowledge and agree that the Securities may be pledged by an Investor (as defined in the Registration
Rights Agreement) in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities
hereunder, and no Investor effecting a pledge of Securities shall be required to provide either of the Companies with any notice thereof or otherwise make any delivery to either of the Companies pursuant to this Agreement or any other Transaction
Document, including, without limitation, Section 2(f) hereof; provided that an Investor and its pledgee shall be required to comply with the provisions of Section 2(f) hereof in order to effect a sale, transfer or assignment of Securities
to such pledgee. The Companies hereby agree to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by an Investor. 
 (i) Disclosure of Transactions and Other Material Information. On or before 8:30 a.m., New York City time, on or before the fourth Business Day
following the date of this Agreement, ABX Holdings shall issue a press release and file a Current Report on Form 8-K describing the terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and
attaching the Escrow Agreement and the material Transaction Documents (including, without limitation, this Agreement, the form of the Notes, the forms of Guarantees and the form of Registration Rights Agreement) as exhibits to such filing (including
all attachments, the “8-K Filing”). Subject to the foregoing, neither the Companies, their Subsidiaries nor any Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated
hereby; provided, however, that ABX Holdings shall be entitled, without the prior approval of any Buyer, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing
and contemporaneously therewith or (ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Buyer shall be consulted by ABX Holdings in connection with any such press release or other public
disclosure prior to its release). Without the prior written consent of any applicable Buyer, neither of the Companies nor any of their Subsidiaries or affiliates shall disclose the name of such Buyer in any filing, announcement, release or otherwise
except as required by law, regulation or governmental agency. 
  

 15 

 (j) Additional Registration Statements. Until 30 days after the date that the Registration
Statement (as defined in the Registration Rights Agreement) is first declared effective by the SEC (the “Effective Date”), ABX Holdings shall not file a registration statement under the 1933 Act relating to securities that are not
the Securities (other than a registration statement on Form S-8). 
 (k) Restriction on Redemption and Cash Dividends. So long as any
Notes are outstanding, ABX Holdings will not, and will not permit ABX Air or any of its other Subsidiaries to, without the prior express written consent of the holders of Notes representing a majority of the aggregate principal amount of the then
outstanding Notes, declare or pay any dividends (other than dividends payable solely in Capital Stock of such Person) or return any capital to, its stockholders or other equity holders, or authorize or make any other distribution, payment or
delivery of property or cash to its stockholders or equity holders as such, or redeem, retire, purchase or otherwise acquire, directly or indirectly, for consideration, any shares of any class of its Capital Stock now or hereafter outstanding (or
any warrants for or options or stock appreciation rights in respect of any of such shares), or set aside any funds for any of the foregoing purposes, or permit any of their Subsidiaries to purchase or otherwise acquire for consideration any shares
of any class of the Capital Stock of ABX Holdings or any of its Subsidiaries, as the case may be, now or hereafter outstanding (or stock appreciation or similar rights issued by such Person with respect to its Capital Stock) (all of the foregoing
“Dividends”), except that: (i) any Subsidiary may pay Dividends to the holders of its Capital Stock, (ii) ABX Holdings may make noncash repurchases of Capital Stock deemed to occur upon exercise of stock options if such
Capital Stock represents a portion of the exercise price of such options, (iii) ABX Holdings may pay cash Dividends to the holders of its Common Stock and ABX Holdings may make cash repurchases of Capital Stock; provided that (x) no
Event of Default (as defined in the Notes) is then in existence or would result from such payment of Dividends or cash repurchases of Capital Stock, and (y) the aggregate amount of all cash Dividends paid and cash repurchases of Capital Stock
shall not exceed $25,000,000 in any fiscal year of ABX Holdings, and (iv) ABX Holdings may make cash repurchases of Capital Stock pursuant to employee compensation arrangements, so long as no Event of Default is then in existence or would
result therefrom. 
 (l) Additional Notes; Variable Securities; Dilutive Issuances. So long as any Buyer beneficially owns any
Securities, the Companies will not issue any Notes other than to the Buyers as contemplated hereby and the Companies shall not issue any other securities that would cause a breach or default under the Notes. For so long as any Notes remain
outstanding, ABX Holdings shall not, in any manner, issue or sell any rights, warrants or options to subscribe for or purchase Common Stock or directly or indirectly convertible into or exchangeable or exercisable for Common Stock at a price which
varies or may vary with the market price of the Common Stock, including by way of one or more reset(s) to any fixed price unless the conversion, exchange or exercise price of any such security cannot be less than the then applicable Conversion Price
(as defined in the ABX Holdings Senior Convertible Notes) with respect to the Common Stock into which any Senior Convertible Note is convertible. For so long as any ABX Holdings Senior Convertible Notes remain outstanding ABX Holdings shall not, in
any manner, enter into or affect any Dilutive Issuances (as defined in the ABX Holdings Senior Convertible Notes) if as a result of such Dilutive Issuance the number of Conversion Shares issuable upon conversion of the ABX Holdings Senior
Convertible Notes, but for the Exchange Cap (as defined in the ABX Holdings Senior Convertible Notes), would exceed the Exchange Cap. 
 (m)
Corporate Existence. So long as any ABX Holdings Senior Convertible Notes remain outstanding, ABX Holdings shall not be party to any Fundamental Transaction (as defined in the ABX Holdings Senior Convertible Notes) unless ABX Holdings is in
compliance with the applicable provisions governing Fundamental Transactions set forth in the ABX Holdings Senior Convertible Notes. 
 (n)
Reservation of Shares. ABX Holdings shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance, no less than 130% of the number of shares of Common Stock issuable upon conversion of the ABX
Holdings Senior Convertible Notes issued at the Closing (without taking into account any limitations on the Conversion of the Notes set forth in the ABX Holdings Senior Convertible Notes). 
 (o) Additional Issuances of Securities. 
 (i) For purposes of this Section 4(o), the following definitions shall apply. 
  

 16 

 (A) “Convertible Securities” means any stock or securities (other than Options)
convertible into or exercisable or exchangeable for shares of Common Stock. 
 (B) “Options” means any rights, warrants or
options to subscribe for or purchase shares of Common Stock or Convertible Securities. 
 (C) “Common Stock Equivalents”
means, collectively, Options and Convertible Securities. 
 (ii) From the date hereof until the date that is 30 days following the Effective
Date (as defined in the Registration Rights Agreement) (the “Trigger Date”), except for the ABX Holdings Senior Convertible Notes, ABX Holdings will not, directly or indirectly, offer, sell, grant any option to purchase, or
otherwise dispose of (or announce any offer, sale, grant or any option to purchase or other disposition of) any of its or its Subsidiaries’ equity or equity equivalent securities, including without limitation any debt, preferred stock or other
instrument or security that is, at any time during its life and under any circumstances, convertible into or exchangeable or exercisable for shares of Common Stock or Common Stock Equivalents (any such offer, sale, grant, disposition or announcement
being referred to as a “Subsequent Placement”). 
 (iii) From the Trigger Date until the second anniversary of the Closing
Date, ABX Holdings will not, directly or indirectly, effect any Subsequent Placement unless ABX Holdings shall have first complied with this Section 4(o)(iii). 
 (A) ABX Holdings shall deliver to each Buyer a written notice (the “Offer Notice”) of any proposed or intended issuance or sale or exchange (the “Offer”) of the securities
being offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall (w) identify and describe the Offered Securities, (x) describe the price and other terms upon which they are to be issued, sold
or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (y) identify the persons or entities (if known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and
(z) offer to issue and sell to or exchange with such Buyers (i) at least 50% of the Offered Securities, allocated among such Buyers (a) based on such Buyer’s pro rata portion of the aggregate principal amount of the Notes
purchased hereunder (the “Basic Amount”), and (b) with respect to each Buyer that elects to purchase its Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts of other Buyers as such
Buyer shall indicate it will purchase or acquire should the other Buyers subscribe for less than their Basic Amounts (the “Undersubscription Amount”), which process shall be repeated until the Buyers shall have an opportunity to
subscribe for any remaining Undersubscription Amount. 
 (B) To accept an Offer, in
whole or in part, such Buyer must deliver a written notice to ABX Holdings prior to the end of the fifth (5th) Business Day after such Buyer’s
receipt of the Offer Notice (the “Offer Period”), setting forth the portion of such Buyer’s Basic Amount that such Buyer elects to purchase and, if such Buyer shall elect to purchase all of its Basic Amount, the
Undersubscription Amount, if any, that such Buyer elects to purchase (in either case, the “Notice of Acceptance”). If the Basic Amounts subscribed for by all Buyers are less than the total of all of the Basic Amounts, then each
Buyer who has set forth an Undersubscription Amount in its Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts subscribed for, the Undersubscription Amount it has subscribed for; provided, however, that
if the Undersubscription Amounts subscribed for exceed the difference between the total of all the Basic Amounts and the Basic Amounts subscribed for (the “Available Undersubscription Amount”), each Buyer who has subscribed for any
Undersubscription Amount shall be entitled to purchase only that portion of the Available Undersubscription Amount as the Basic Amount of such Buyer bears to the total Basic Amounts of all Buyers that have subscribed for Undersubscription Amounts,
subject to rounding by ABX Holdings to the extent its deems reasonably necessary. 
 (C) ABX Holdings shall have fifteen
(15) Business Days from the expiration of the Offer Period above to offer, issue, sell or exchange all or any part of such Offered Securities as to which a Notice of Acceptance has not been given by the Buyers (the “Refused
Securities”), but only to the offerees described in the Offer Notice (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and interest rates) that are not more favorable to the acquiring
person or persons or less favorable to ABX Holdings than those set forth in the Offer Notice. 
  

 17 

 (D) In the event ABX Holdings shall propose to sell less than all the Refused Securities (any such sale
to be in the manner and on the terms specified in Section 4(o)(iii)(C) above), then each Buyer may, at its sole option and in its sole discretion, reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an
amount that shall be not less than the number or amount of the Offered Securities that such Buyer elected to purchase pursuant to Section 4(o)(iii)(B) above multiplied by a fraction, (i) the numerator of which shall be the number or amount
of Offered Securities ABX Holdings actually proposes to issue, sell or exchange (including Offered Securities to be issued or sold to Buyers pursuant to Section 4(o)(iii)(C) above prior to such reduction) and (ii) the denominator of which
shall be the original amount of the Offered Securities. In the event that any Buyer so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, ABX Holdings may not issue, sell or exchange more than the
reduced number or amount of the Offered Securities unless and until such securities have again been offered to the Buyers in accordance with Section 4(o)(iii)(A) above. 
 (E) Upon the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, the Buyers shall acquire from ABX Holdings,
and ABX Holdings shall issue to the Buyers, the number or amount of Offered Securities specified in the Notices of Acceptance, as reduced pursuant to Section 4(o)(iii)(C) above if the Buyers have so elected, upon the terms and conditions
specified in the Offer. The purchase by the Buyers of any Offered Securities is subject in all cases to the preparation, execution and delivery by ABX Holdings and the Buyers of a purchase agreement relating to such Offered Securities reasonably
satisfactory in form and substance to the Buyers and their respective counsel. 
 (F) Any Offered Securities not acquired by the Buyers or
other persons in accordance with Section 4(o)(iii)(C) above may not be issued, sold or exchanged until they are again offered to the Buyers under the procedures specified in this Agreement. 
 (G) ABX Holdings and the Buyers agree that if any Buyer elects to participate in the Offer, (y) neither the securities purchase agreement (the
“Subsequent Placement Agreement”) with respect to such Offer nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”) shall include any term or provisions whereby any
Buyer shall be required to agree to any restrictions in trading as to any securities of ABX Holdings owned by such Buyer prior to such Subsequent Placement (unless such term or provision applies to all Persons who are participating in the Subsequent
Placement), and (z) any registration rights set forth in such Subsequent Placement Documents shall be similar in all material respects to the registration rights contained in the Registration Rights Agreement. 
 (H) Notwithstanding anything to the contrary in this Section 4(o) and unless otherwise
agreed to by the Buyers, ABX Holdings shall either confirm in writing to the Buyers that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention to issue the Offered Securities, in either
case in such a manner such that the Buyers will not be in possession of material non-public information, by the fifteenth (15th) Business Day
following delivery of the Offer Notice. If by the fifteenth (15th) Business Day following delivery of the Offer Notice no public disclosure regarding
a transaction with respect to the Offered Securities has been made, and no notice regarding the abandonment of such transaction has been received by the Buyers, such transaction shall be deemed to have been abandoned and the Buyers shall not be
deemed to be in possession of any material, non-public information with respect to ABX Holdings. Should ABX Holdings decide to pursue such transaction with respect to the Offered Securities, ABX Holdings shall provide each Buyer with another Offer
Notice and each Buyer will again have the right of participation set forth in this Section 4(o)(iii). ABX Holdings shall not be permitted to deliver more than one such Offer Notice to the Buyers in any 60 day period except to the extent such
additional Offer Notice concerns a modification of the terms of the Subsequent Placement. 
 (iv) The restrictions contained in
subsections (ii) and (iii) of this Section 4(o) shall not apply in connection with the issuance of any Excluded Securities (as defined in the ABX Holdings Senior Convertible Notes). 
 (p) Guaranties of New Subsidiaries. Upon the formation or acquisition of any new direct or indirect Domestic Subsidiaries (as defined in the
Guarantees) by ABX Holdings or ABX Air or any subsidiary of ABX Holdings, ABX Air or any Guarantor (as defined in the Guarantees), ABX Holdings or ABX Air, as applicable, shall, within 30 days (which may be extended by up to additional 10 days by
the Majority Holders (as such term is defined in the Guarantees)) after such formation or acquisition, cause such Domestic 

  

 18 

 
Subsidiary to duly execute and deliver to each Buyer a guaranty supplement, in the form attached as Annex I to the applicable Guaranty. Notwithstanding the
foregoing, as long as the Credit Agreement (as defined below) remains in effect, only Domestic Subsidiaries that are required pursuant to the terms of the Credit Agreement to execute and deliver a guaranty to the Senior Lenders (as defined in the
Credit Agreement) shall be required to execute and deliver a guaranty supplement to each Purchaser. 
 (q) Total Leverage Ratio. So
long as any Notes remain outstanding, ABX Holdings will not permit the Total Leverage Ratio (as defined below) at the end of any Test Period (as defined below) ending on or about any date set forth below to be more than the ratio set forth opposite
such date: 
  

			
	 Fiscal Quarter End Date
	  	 Total Leverage
Ratio

	 December 31, 2007
	  	4.25 to 1.00
	 March 31, 2008
	  	4.25 to 1.00
	 June 30, 2008
	  	4.25 to 1.00
	 September 30, 2008
	  	4.25 to 1.00
	 December 31, 2008
	  	4.00 to 1.00
	 March 31, 2009
	  	4.00 to 1.00
	 June 30, 2009
	  	4.00 to 1.00
	 September 30, 2009
	  	4.00 to 1.00
	 December 31, 2009
	  	3.75 to 1.00
	 Each Fiscal Quarter thereafter
	  	3.75 to 1.00

 For purposes of this Section 4(q), 
 (i) “Total Leverage Ratio” shall mean at any date the ratio of Consolidated Total Debt of ABX Holdings and its Subsidiaries at such date
to Consolidated EBITDA of ABX Holdings and its Subsidiaries for the Test Period ending on or immediately preceding such date. 
 (ii)
“Consolidated Total Debt” shall mean, as at any date of determination, the aggregate amount of all Indebtedness of ABX Holdings and its Subsidiaries determined on a consolidated basis in accordance with GAAP. 
 (iii) “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income of ABX Holdings and its Subsidiaries for such period
plus, without duplication and to the extent reflected as a deduction in the statement of such Consolidated Net Income for such period, the sum of (A) total income tax expense during such period, (B) Consolidated Interest Expense during
such period, (C) depreciation and amortization expense, (D) amortization of intangibles (including, but not limited to, goodwill), and (E) any extraordinary expenses or losses and minus any extraordinary income or gains
(including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, gains or losses on the sales of assets outside of the ordinary course of business). 
 (iv) “Consolidated Net Income” shall mean for any period, the net income (or loss) of ABX Holdings and its Subsidiaries on a
consolidated basis for such period taken as a single accounting period determined in conformity with GAAP, provided that there shall be excluded (i) the income (or loss) of any Person in which any other Person has a joint interest, in
each case except to the extent of the amount of dividends or other distributions actually received by ABX Holdings or any of its Subsidiaries from such Person during such period, (ii) the income of any Subsidiary of ABX Holdings (other than a
Credit Party (as defined in the Credit Agreement)) to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of that income is not at the time permitted by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary and (iii) the income statement effect of FASB 52 foreign currency gains and losses. 
  

 19 

 (v) “Consolidated Interest Expense” shall mean, for any period, total interest expense
determined in accordance with GAAP (including that attributable to Capital Leases in accordance with GAAP) of ABX Holdings and its Subsidiaries on a consolidated basis with respect to all outstanding Indebtedness of ABX Holdings and their
Subsidiaries, including, without limitation, all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing. 
 (vi) “GAAP” shall mean generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the accounting
profession), or in such other statements by such other entity as may be in general use by significant segments of the accounting profession, as in effect from time to time. 
 (vii) “Test Period” shall mean, at any time of determination, the four consecutive Fiscal Quarters of ABX Holdings (taken as one
accounting period) then last ended; provided, however, for the purposes of determining compliance with this Section 4(q) for any Test Period ending prior to the Fiscal Quarter ending December 31, 2008, (x) Consolidated
Interest Expense of ABX Holdings and its Subsidiaries for each such Test Period shall be determined by taking the actual Consolidated Interest Expense for the period from December 31, 2007 through the last day of such Test Period and
multiplying such amount by (i) in the case of the Test Period ending March 31, 2008, 4, (ii) in the case of the Test Period ending June 30, 2008, 2, and (iii) in the case of the Test Period ending September 30, 2008,
4/3; and (y) Consolidated EBITDA of ABX Holdings and its Subsidiaries for each such Test Period shall be determined by taking the actual Consolidated EBITDA of ABX Air and its Subsidiaries and the actual Consolidated EBITDA of Cargo Holdings
International, Inc. and its Subsidiaries on a combined basis for the applicable Fiscal Quarters. 
 (viii) “Relief Fund”
shall mean ABX Air Employee Catastrophic Relief Fund, an Ohio non-profit corporation. 
 For the purposes of calculating the financial covenant set forth in
this Section 4(q), the Relief Fund shall be deemed not to be a “Subsidiary.” 
 5. REGISTER; TRANSFER AGENT
INSTRUCTIONS. 
 (a) Register. Each of the Companies shall maintain at its principal executive offices (or such other office or
agency of the Companies as it may designate by notice to each holder of Securities), a register for the applicable Notes in which the Companies shall record the name and address of the Person in whose name the Notes have been issued (including the
name and address of each transferee), the principal amount of Notes held by such Person, and the number of Conversion Shares issuable upon conversion of the ABX Holdings Senior Convertible Notes held by such Person. The Companies shall keep the
register open and available at all times during business hours for inspection of any Buyer or its legal representatives. 
 (b) Transfer
Agent Instructions. No later than the Closing Date, ABX Holdings shall issue irrevocable instructions to its transfer agent, and any subsequent transfer agent, to issue certificates or credit shares to the applicable balance accounts at The
Depository Trust Company (“DTC”), registered in the name of each Buyer or its respective nominee(s), for the Conversion Shares issued at the Closing or upon conversion of the ABX Holdings Senior Convertible Notes in such amounts as
specified from time to time by each Buyer to ABX Holdings upon conversion of the ABX Holdings Senior Convertible Notes in a form reasonably acceptable to the Buyers. ABX Holdings warrants that no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section 5(b), and stop transfer instructions to give effect to Section 2(g) hereof, will be given by ABX Holdings to its transfer agent, and that the Securities shall otherwise be freely transferable on the
books and records of ABX Holdings as and to the extent provided in this Agreement and the other Transaction Documents. If a Buyer effects a sale, assignment or transfer of the Securities in accordance with Section 2(f), ABX Holdings shall
permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Buyer to effect such sale,
transfer or assignment. In the event that such sale, assignment or transfer involves Conversion Shares sold, assigned or transferred pursuant to an effective registration statement or pursuant to Rule 144, the transfer agent shall issue such
Securities to the Buyer, assignee or transferee, as the case may be, without any restrictive legend. ABX Holdings acknowledges that a 

  

 20 

 
breach by it of its obligations hereunder will cause irreparable harm to a Buyer. Accordingly, ABX Holdings acknowledges that the remedy at law for a breach
of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach by ABX Holdings of the provisions of this Section 5(b), that a Buyer shall be entitled, in addition to all other
available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required. 
 6. CONDITIONS TO THE COMPANIES’ OBLIGATION TO SELL. The obligation of the Companies hereunder to issue and sell the Notes to each Buyer at
the Closing is subject to the satisfaction, at or before the Closing Date, of the following condition: 
 (a) Prior to the Funding Deadline,
ABX Air shall have received from DHL a written demand for prepayment of all of the outstanding principal and accrued interest on the DHL Note (the “DHL Prepayment Demand”). 
 7. CONDITIONS TO EACH BUYER’S OBLIGATION TO PURCHASE. The obligation of each Buyer hereunder to purchase the Notes at the Closing is subject
to the satisfaction, at or before the Closing Date, of each of the following conditions: 
 (a) Prior to the Funding Deadline, ABX Air shall
have received the DHL Prepayment Demand and shall have provided a copy of the DHL Prepayment Demand to each of the Buyers and the Escrow Agent; 
 (b)(i) On the Closing Date, no Default (as defined in the Credit Agreement (the “Credit Agreement”), dated as of December 31, 2007, among the Companies, Acquisition, the lending and other financial institutions listed
from time to time on Annex 1.1A thereto, and SunTrust Bank, as administrative agent (the “Administrative Agent”)) or Event of Default (as defined in the Credit Agreement) shall have occurred and be continuing under the Credit
Agreement or any of the other Credit Documents (as defined in the Credit Agreement), and the consummation of the transactions contemplated by this Agreement shall not result in, or constitute a Default or Event of Default under, the Credit Agreement
or any of the other Credit Documents, (ii) each of the Buyers, the Escrow Agent and the Administrative Agent shall have received a certificate executed by the Chief Executive Officer of each of the Companies, certifying that (A) neither
the Borrowers (as defined in the Credit Agreement) nor any of the other Credit Parties (as defined in the Credit Agreement) have received a notice of default (as described in Section 11.5 of the Credit Agreement) from any Lender (as defined in
the Credit Agreement) or (B) the Borrowers and/or the other Credit Parties have received such a notice of default, but the Default(s) or Event(s) of Default described in such notice of default has or have been cured or waived in accordance with
the terms of the Credit Agreement, and (iii) each of the Buyers and the Escrow Agent shall have received a certificate executed by the Administrative Agent, certifying that (A) the Administrative Agent has not received a notice of default
(as described in Section 11.5 of the Credit Agreement) from any Lender or the Borrowers or any other Credit Party, or (ii) the Administrative Agent has received such a notice of default, but the Default(s) or Event(s) of Default described
in such notice of default has or have been cured or waived in accordance with the terms of the Credit Agreement; and 
 (c) ABX Air shall
have deposited or caused to be deposited into the Escrow Account an amount not less than the difference between (i) the amount necessary to pay in full all outstanding principal, interest, fees, penalties and other charges due under the DHL
Note and (ii) $61,000,000. 
 8. TERMINATION. In the event that the Closing shall not have occurred on or before the Funding
Deadline, this Agreement shall automatically terminate without liability of any party to any other party; provided, however, if this Agreement is terminated for any reason, the Companies shall remain obligated to pay, or cause to be paid, all costs
and expenses of Mass Mutual described in Section 4(g) above. 
 9. MISCELLANEOUS.  
 (a) Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the
laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute
hereunder or in connection 
  

 21 

 
herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.  
 (b) Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the
same force and effect as if the signature were an original, not a facsimile signature. 
 (c) Headings. The headings of this Agreement
are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. 
 (d) Severability. If
any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction. 
 (e) Entire Agreement; Amendments. This Agreement and
the other Transaction Documents supersede all other prior oral or written agreements between the Buyers, the Companies, their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement, the other
Transaction Documents and the instruments referenced herein and therein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither of the
Companies nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended other than by an instrument in writing signed by the Companies and the holders of at
least a majority of the aggregate principal amount of the Notes then outstanding, and any amendment to this Agreement made in conformity with the provisions of this Section 9(e) shall be binding on all Buyers and holders of Securities as
applicable; provided, that (i) no amendment to this Agreement which has a disproportionate negative impact on any Buyer as compared to the other Buyers may be made without the approval of such negatively affected Buyer, (ii) no
amendment to Section 4(o) may be made without the approval of ABX Holdings and each Buyer entitled to participate in Subsequent Placements pursuant to the terms thereof, (iii) no amendment to any provision of this Agreement that relates
solely to the ABX Holdings Senior Convertible Notes may be without the approval of ABX Holdings and the holders of at least a majority of the aggregate number of Registrable Securities issued and issuable hereunder and under the ABX Holdings Senior
Convertible Notes, and (iv) no amendment to Section 4(g) may be made without the further approval of the Companies, the holders of at least a majority of the aggregate number of Registrable Securities issued and issuable hereunder and
under the ABX Holdings Senior Convertible Notes and Mass Mutual. No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. No such amendment shall be effective to the extent that
it applies to less than all of the holders of the applicable Securities then outstanding. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents
unless the same consideration also is offered to all of the parties to the Transaction Documents or holders of Notes, as the case may be. Neither of the Companies has, directly or indirectly, made any agreements with any Buyers relating to the terms
or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Companies confirm that, except as set forth in this Agreement, no Buyer has made any
commitment or promise or has any other obligation to provide any financing to the Companies or otherwise. 
  

 22 

 (f) Notices. Any notices, consents, waivers or other communications required or permitted to be
given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and
facsimile numbers for such communications shall be: 
 If to either of the Companies: 
 [ABX Holdings, Inc./ABX Air, Inc.] 
 145
Hunter Drive 
 Wilmington, Ohio 45177 
 Attention: W. Joseph Payne, Esq., VP, General Counsel and Secretary 
 Telephone: (937) 382-5591 
 Facsimile: (937) 382-2452 
 with a copy
to: 
 Vorys, Sater, Seymour and Pease LLP 
 221 East Fourth Street, Suite 2000 
 Cincinnati, Ohio 45202 
 Attention: Roger E. Lautzenhiser, Esq. 
 Telephone: (513) 723-4091 
 Facsimile: (513)852-8490 
 If to the Transfer Agent: 
 National City
Bank 
 Shareholder Services Administration 
 Suite 635 – LOC 3116 
 629 Euclid Avenue 
 Cleveland, Ohio 44114 
 Attention: Sherry L.
Damore 
 Telephone: (216) 222-2494 
 Facsimile: (216) 222-2649 
 If to a Buyer, to its address and facsimile number set forth on the Schedule of Buyers, with
copies to such Buyer’s representatives as set forth on the Schedule of Buyers, 
 with a copy (for informational purposes) to:

 Robinson & Cole LLP 
 280 Trumbull Street 
 Hartford, CT 06103 
 Telephone: (860) 275-8244 
 Facsimile: (860) 275-8299 
 Attention: Matthew J. Guanci, Jr., Esq. 
 or to such other
address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of
receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i),
(ii) or (iii) above, respectively. 
  

 23 

 (g) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors and assigns, including any purchasers of the Notes. Neither of the Companies shall assign this Agreement or any rights or obligations hereunder without the prior written consent of (i) the holders of at
least a majority of the aggregate principal amount of the Notes then outstanding and (ii) the holders of at least a majority of the aggregate number of Registrable Securities issued and issuable hereunder, including by way of a Fundamental
Transaction (unless ABX Holdings is in compliance with the applicable provisions governing Fundamental Transactions set forth in the ABX Holdings Senior Convertible Notes). A Buyer may assign some or all of its rights hereunder without the consent
of the Companies, in which event such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights; provided, that such assignment is in compliance with the transfer provisions contained in this Agreement.
Notwithstanding the foregoing, without the prior consent of the Companies (which will not be unreasonably withheld or delayed), the Notes may not be transferred in increments of less than $1,000,000 (provided, that such minimum amount shall not
apply in the case of (x) a transfer of the remaining Principal amount of the ABX Holdings Senior Convertible Notes or ABX Air Senior Notes held by a Buyer or (y) during the continuance of an Event of Default (as defined in the Notes)).

 (h) No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 
 (i) Survival.
Unless this Agreement is terminated under Section 8, the representations and warranties of the Companies and the Buyers contained in Sections 2 and 3, and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing.
Each Buyer shall be responsible only for its own representations, warranties, agreements and covenants hereunder. 
 (j) Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 
 (k) Indemnification. In consideration of each Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder and in addition to all of the Companies’ other
obligations under the Transaction Documents, each of the Companies shall, jointly and severally, defend, protect, indemnify and hold harmless each Buyer and each other holder of the Securities and all of their stockholders, partners, members,
officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement)
(collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such
Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Companies in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby,
(b) any breach of any covenant, agreement or obligation of the Companies contained in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby or (c) any cause of action, suit or claim
brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Companies) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of the
Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the
Securities, (iii) any disclosure made by either of the Companies pursuant to Section 4(i), or (iv) the status of such Buyer or holder of the Securities as an investor in the Companies pursuant to the transactions contemplated by the
Transaction Documents. To the extent that the foregoing undertaking by the Companies may be unenforceable for any reason, the Companies shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that
is permissible under applicable law. Except as otherwise set forth herein, the mechanics and procedures with respect to the rights and obligations under this Section 9(k) shall be the same as those set forth in Section 6 of the
Registration Rights Agreement. 
  

 24 

 (l) No Strict Construction. The language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 
 (m)
Remedies. Each Buyer and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under any other agreement or
contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover
damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Companies recognize that in the event that they fail to perform, observe, or discharge any or all of their
obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the Buyers. The Companies therefore agree that the Buyers shall be entitled to seek temporary and permanent injunctive relief in any such case
without the necessity of proving actual damages and without posting a bond or other security. 
 (n) Rescission and Withdrawal Right.
Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and either of the
Companies does not timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole discretion from time to time upon written notice to the Companies, any relevant notice, demand or
election in whole or in part without prejudice to its future actions and rights 
 (o) Payment Set Aside. To the extent that either of
the Companies makes a payment or payments to the Buyers hereunder or pursuant to any of the other Transaction Documents or the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of such
enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to either of the Companies, a
trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part
thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
 (p) Independent Nature of Buyers’ Obligations and Rights. The obligations of each Buyer under any Transaction Document are several and not
joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and
no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Buyers are in any way acting in concert
or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that the Buyers are not acting in concert or as a group with respect to such obligations or the transactions
contemplated by the Transaction Documents. Each Buyer confirms that it has independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to
independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional party in
any proceeding for such purpose. 
 [Signature Page Follows] 
  

 25 

 IN WITNESS WHEREOF, each Buyer and each of the Companies have caused their respective signature
page to this Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	COMPANIES:
	
	ABX HOLDINGS, INC.
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	W. Joseph Payne
	Title:	 	VP, General Counsel and Secretary
	
	ABX AIR, INC.
		
	By:	 	 /s/ W. Joseph Payne

	Name:	 	W. Joseph Payne
	Title:	 	VP, General Counsel and Secretary

 [Signature Page to Securities Purchase Agreement] 

 IN WITNESS WHEREOF, each Buyer and each of the Companies have caused their respective signature
page to this Securities Purchase Agreement to be duly executed as of the date first written above. 
  

			
	BUYERS:
	
	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
		
	By:	 	 Babson Capital Management, LLC,
 Its Investment Adviser

		
	By:	 	 /s/ Elisabeth A. Perenick

	Name:	 	Elisabeth A. Perenick
	Title:	 	Managing Director
	
	MASSMUTUAL HIGH YIELD PARTNERS II, LLC
		
	BY:	 	 HVP MANAGEMENT LLC,
 AS MANAGING
MEMBER

		
	BY:	 	 /s/ Elisabeth A. Perenick

	Name:	 	Elisabeth A. Perenick
	Title:	 	Vice President
	
	MASSMUTUAL CORPORATE VALUE PARTNERS LIMITED
		
	BY:	 	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, AS INVESTMENT MANAGER
		
	BY:	 	 /s/ Steven J. Katz

	Name:	 	Steven J. Katz
	Title:	 	Second Vice President and Associate General Counsel
	
	ACI INTERNATIONAL, INC.
		
	By:	 	 /s/ Raymond W. Zehr, Jr.

	Name:	 	Raymond W. Zehr, Jr.
	Title:	 	President
	
	AVIATION CAPITAL GROUP CORP.
		
	By:	 	 /s/ Benjamin L. Jung

	Name:	 	Benjamin L. Jung
	Title:	 	Managing Director and COO
		
	By:	 	 /s/ Loren M. Dollet

	Name:	 	Loren M. Dollet
	Title:	 	Executive Vice President and Assistant Secretary

 [Signature Page to Securities Purchase Agreement] 

			
	ACG ACQUISITION XX LLC
		
	By:	 	 /s/ Benjamin L. Jung

	Name:	 	Benjamin L. Jung
	Title:	 	Manager
		
	By:	 	 /s/ Loren M. Dollet

	Name:	 	Loren M. Dollet
	Title:	 	Attorney-in-fact
	
	MINNESOTA FOX II, LLC
		
	By:	 	 /s/ Peter Fox

	Name:	 	Peter Fox
	Title:	 	Sole Manager

 [Signature Page to Securities Purchase Agreement] 

 SCHEDULE OF BUYERS 
  

											
	 (1)
	  	 (2)
	  	(3)	  	(4)	  	(5)	  	 (6)

	 Buyer
	  	 Address and Facsimile Number
	  	Principal Amount of
ABX Holdings Senior
Convertible Notes	  	Principal Amount of
ABX Air Senior Notes	  	Aggregate Purchase
Price	  	 Legal Representative’s Address and
Facsimile
Number

	A.C.I. International, Inc.	  	 A.C.I. International, Inc.
 c/o Mr. Raymond W. Zehr,
President
 60 South Sixth Street, Suite 3880
 Minneapolis,
Minnesota 55402
 Fax: (612) 661-3825
	  	$6,721,311.48	  	$13,278,688.52	  	$20,000,000.00	  	 Brian D. Wenger Esq.
 Briggs and Morgan, P.A.

2200 IDS Center
 80 South 8th Street
 Minneapolis, Minnesota 55402-2157
 Fax: (612)
977-8650

						
	Massachusetts Mutual Life Insurance Company	  	 1295 State Street
 Springfield, Massachusetts
01111
 Attention: Andrew O’Toole
 Facsimile: (413) 744-6114

	  	$3,742,775.17	  	$7,394,263.13	  	$11,137,038.30	  	 Massachusetts Mutual Life Insurance Company
 c/o Babson
Capital Management LLC
 1500 Main Street, Suite 2800
 Springfield, MA 01115
 Attention: Steven J. Katz, Esq.
 Facsimile: (413) 226-2059

						
	 MassMutual Corporate Value Partners Limited
 (Notes to be
issued in the name of Gerlach & Co.)
	  	 1295 State Street
 Springfield, Massachusetts
01111
 Attention: Andrew O’Toole
 Facsimile: (413) 744-6114

	  	$2,377,415.84	  	$4,696,845.93	  	$7,074,261.77	  	 Massachusetts Mutual Life Insurance Company
 c/o Babson
Capital Management LLC
 1500 Main Street, Suite 2800
 Springfield, MA 01115
 Attention: Steven J. Katz, Esq.
 Facsimile: (413) 226-2059

						
	 MassMutual High Yield Partners II, LLC
 (Notes to be
issued in the name of Gerlach & Co.)
	  	 1295 State Street
 Springfield, Massachusetts
01111
 Attention: Andrew O’Toole
 Facsimile: (413) 744-6114

	  	$601,120.47	  	$1,187,579.46	  	$1,788,699.93	  	 Massachusetts Mutual Life Insurance Company
 c/o Babson
Capital Management LLC
 1500 Main Street, Suite 2800
 Springfield, MA 01115
 Attention: Steven J. Katz, Esq.
 Facsimile: (413) 226-2059

						
	Aviation Capital Group Corp.	  	 610 Newport Center Drive, Suite 1400
 Newport Beach,
California 92660-6465
 Attention: Legal Department
 Fax: +1 (949) 718-5803
	  	$4,486,707.65	  	$8,863,983.40	  	$13,350,691.05	  	
						
	ACG Acquisition XX LLC	  	 610 Newport Center Drive, Suite 1400
 Newport Beach,
California 92660-6465
 Attention: Legal Department
 Fax: +1 (949) 718-5803
	  	$2,234,603.83	  	$4,414,705.12	  	$6,649,308.95	  	
						
	Minnesota Fox II, LLC	  	 c/o Peter F. Fox
 950 Lancaster Drive
 Orlando, Florida 32806
 Tel: (407) 898-7628
	  	$336,065.57	  	$663,934.43	  	$1,000,000.00	  	

 EXHIBITS 
  

			
	Exhibit A	 	Form of Senior Convertible Note
	Exhibit B	 	Form of Senior Note
	Exhibit C	 	Form of Registration Rights Agreement
	Exhibit D	 	Form of Senior Note Guaranty
	Exhibit E	 	Form of Senior Convertible Note Guaranty

 DISCLOSURE SCHEDULE 
  

			
	Section 3(a)	  	Subsidiaries
	Section 3(e)	  	Consents
	Section 3(l)	  	Absence of Certain Changes
	Section 3(q)	  	Equity Capitalization
	Section 3(r)	  	Indebtedness
	Section 3(u)	  	Employee Relations
	Section 3(v)	  	Title
	Section 3(y)	  	Subsidiary Rights
	Section 3(ll)	  	Disclosure
	Section 3(mm)	  	Undisclosed Events, Liabilities, Developments or Circumstances
	Section 4(i)	  	Disclosure of Transactions and Other Material InformationForm of Senior Subordinated Convertible Note

 Exhibit 10.5 
 [FORM OF SENIOR SUBORDINATED CONVERTIBLE NOTE] 
 NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY
THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM (IT BEING AGREED THAT IN-HOUSE
COUNSEL SHALL BE ACCEPTABLE), THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING SECTIONS 3(c)(iii) AND 20(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND,
ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS NOTE. 
 THE INDEBTEDNESS AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION AGREEMENT (THE “SUBORDINATION AGREEMENT”) DATED AS
OF DECEMBER 31, 2007 AMONG SUNTRUST BANK, IN ITS CAPACITY AS ADMINISTRATIVE AGENT, THE SUBORDINATED CREDITORS LISTED ON THE SIGNATURE PAGES THEREOF, ABX HOLDINGS, INC., A DELAWARE CORPORATION, ABX AIR, INC., A DELAWARE CORPORATION, CHI ACQUISITION
CORP., A FLORIDA CORPORATION, AND THE SUBSIDIARY GUARANTORS LISTED ON THE SIGNATURE PAGES THEREOF, AS THE SAME MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME IN ACCORDANCE WITH ITS TERMS, AND EACH HOLDER OF THIS INSTRUMENT OR
AGREEMENT, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE SUBORDINATION AGREEMENT. TO THE EXTENT ANY TERM, PROVISION, COVENANT, AGREEMENT OR CONDITION HEREIN CONFLICTS WITH OR OTHERWISE CONTRADICTS ANY OF THE TERMS
OR PROVISIONS OF THE SUBORDINATION AGREEMENT, THE TERMS AND PROVISIONS OF THE SUBORDINATION AGREEMENT SHALL CONTROL. 
 ABX HOLDINGS,
INC. 
 SENIOR SUBORDINATED CONVERTIBLE NOTE 
  

				
	Issuance Date:                     , 2008	  	Original Principal Amount: U.S. $	[                    ]

 FOR VALUE RECEIVED, ABX Holdings, Inc., a Delaware corporation (the “Company”), hereby
promises to pay to the order of [                    ] or registered assigns (“Holder”) the amount set out above as the
Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”) when due, whether upon the Maturity Date (as defined below), acceleration, redemption or otherwise
(in each case in accordance with the terms hereof) and to pay interest (“Interest”) on any outstanding Principal at a rate equal to three and one quarter percent (3.25%) per annum (the “Interest Rate”), from
the date set out above as the Issuance Date (the “Issuance Date”) until the same becomes due and payable, whether upon an Interest Date (as defined below), the Maturity Date, acceleration, conversion, redemption or otherwise (in
each case in accordance with the terms hereof). This Senior Subordinated Convertible Note (including all Senior Subordinated Convertible Notes issued in exchange, transfer or replacement hereof, this “Note”) is one of an issue of
Senior Subordinated Convertible Notes (collectively, the “Notes” and such other Senior Subordinated Convertible Notes, the “Other Notes”) issued pursuant to the Securities Purchase Agreement (as defined below).
Certain capitalized terms are defined in Section 31.  

 (1) MATURITY. On the Maturity Date, the
Company shall pay to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid Interest and accrued and unpaid Late Charges, if any, on such Principal and Interest. The “Maturity Date” shall be the date
that is one hundred eighty (180) days after the fifth (5th) anniversary of the Issuance Date set forth on the first page of this Note, as may be
extended at the option of the Holder (i) in the event that, and for so long as, an Event of Default (as defined in Section 4(a)) shall have occurred and be continuing on the Maturity Date (as may be extended pursuant to this
Section 1) or any event that shall have occurred and be continuing that with the passage of time and the failure to cure would result in an Event of Default and (ii) through the date that is ten (10) Business Days after the
consummation of a Change of Control in the event that a Change of Control is publicly announced or a Change of Control Notice (as defined in Section 5(b)) is delivered prior to the Maturity Date. 
 (2) INTEREST; INTEREST RATE. Interest on this Note shall commence accruing on the Issuance
Date and shall be computed on the basis of a 365-day year and actual days elapsed and shall be payable in arrears for each Calendar Quarter on the first day of the succeeding Calendar Quarter during the period beginning on the Issuance Date and
ending on, and including, the Maturity Date (each, an “Interest Date”) with the first Interest Date being the first day of the Calendar Quarter immediately following the Calendar Quarter in which the Issuance Date set forth above
occurs. Interest shall be payable on each Interest Date, to the record holder of this Note on the applicable Interest Date, in cash. Prior to the payment of Interest on an Interest Date, Interest on this Note shall accrue at the Interest Rate and be
payable by way of inclusion of the Interest in the Conversion Amount in accordance with Section 3(b)(i). From and after the occurrence and during the continuance of an Event of Default, the Interest Rate shall be increased to thirteen and one
quarter percent (13.25%) (the “Default Interest Rate”); provided, however, that, in the case of an Event of Default other than an Event of Default described in Section 4(a)(v), such Default Interest Rate shall not commence
until the 30th day following the occurrence of the Event of Default. In the event that such Event of Default is subsequently cured, the adjustment referred
to in the preceding sentence shall cease to be effective as of the date of such cure; provided that the Interest as calculated at such increased rate during the continuance of such Event of Default shall continue to apply to the extent relating to
the days after the occurrence of such Event of Default (or in the case of an Event of Default other than an Event of Default described in Section 4(a)(v), after the 30th day following the occurrence of such Event of Default) through and including the date of cure of such Event of Default. 
 (3) CONVERSION OF NOTES. This Note shall be convertible into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), on the terms and conditions set forth in
this Section 3. 
 (a) Conversion Right. Subject to the provisions of Section 3(d), at any time or times on
or after the Issuance Date, the Holder shall be entitled to convert all (or any portion equal to $1,000 or any integral multiple of $1,000 in excess thereof) of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and
nonassessable shares of Common Stock in accordance with Section 3(c), at the Conversion Rate (as defined below). The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the
issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all taxes that may be payable with respect to the issuance and delivery
of Common Stock upon conversion of any Conversion Amount. 
 (b) Conversion Rate. The number of shares of Common Stock
issuable upon conversion of any Conversion Amount pursuant to Section 3(a) shall be determined by dividing (x) such Conversion Amount by (y) the then applicable Conversion Price (the “Conversion Rate”). 
 (i) “Conversion Amount” means the sum of (A) the portion of the Principal to be converted, redeemed or otherwise
with respect to which this determination is being made, (B) accrued and unpaid Interest with respect to such Principal and (C) accrued and unpaid Late Charges with respect to such Principal and Interest. 
  

 2 

 (ii) “Conversion Price” means, as of any Conversion Date (as defined
below) or other date of determination, five dollars and fifty-nine cents ($5.59), subject to adjustment as provided herein. 
 (c) Mechanics of Conversion. 
 (i) Optional
Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”), the Holder shall (A) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York
Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company in accordance with Section 25(a), with a copy to the Company’s
transfer agent (the “Transfer Agent”) for the Common Stock, by facsimile to (216) 222-2649, Attention: Sherry L. Damore or Vice President and (B) if required by Section 3(c)(iii), surrender this Note to a common
carrier for delivery to the Company as soon as practicable on or following such date (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction). On or before the second (2nd) Business Day following the date of receipt of a Conversion Notice (the “Share Delivery Date”), the Company shall (X) provided that the Transfer Agent is
participating in the Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer Program credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its
designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as
specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled. If this Note is physically surrendered for conversion as
required by Section 3(c)(iii) and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later than three
(3) Business Days after receipt of this Note and at its own expense, issue and deliver to the holder a new Note (in accordance with Section 20(c)) representing the outstanding Principal not converted. The Person or Persons entitled to
receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date. 
 (ii) [Reserved] 
 (iii) Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the
Company unless (A) the full Conversion Amount represented by this Note is being converted or (B) the Holder has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of
this Note upon physical surrender. The Holder and the Company shall maintain records showing the Principal, Interest and Late Charges converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder
and the Company, so as not to require physical surrender of this Note upon conversion. 
 (iv) Pro Rata Conversion;
Disputes. In the event that the Company receives a Conversion Notice from more than one holder of Notes for the same Conversion Date and the Company can convert some, but not all, of such portions of the Notes submitted for conversion, the
Company, subject to Section 3(d), shall convert from each holder of Notes electing to have Notes converted on such date a pro rata amount of such holder’s portion of its Notes submitted for conversion based on the principal amount of Notes
submitted for conversion on such date by such holder relative to the aggregate principal amount of all Notes submitted for conversion on such date. In the event of a dispute as to the number of shares of Common Stock issuable to the Holder in
connection with a conversion of this Note, the Company shall issue to the Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section 25. 
 (d) Limitations on Conversions. 
 (i) Notwithstanding anything in this Note to the contrary, the Company shall not effect any conversion of this Note, and the Holder of this Note shall not have the right to convert any portion of this Note pursuant to
Section 3(a), to the extent that after giving effect to such conversion, the Holder (together with the Holder’s affiliates) would beneficially own in excess of 9.99% (the “Maximum Percentage”) of the number of shares of
Common Stock outstanding immediately after giving effect to such conversion. For purposes of the foregoing sentence, the number of shares of Common Stock 

  

 3 

 
beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to
which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted portion of this Note beneficially owned by the Holder or
any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any Other Notes or warrants) subject to a limitation on conversion or
exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section 3(d)(i), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended. For purposes of this Section 3(d)(i), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding
shares of Common Stock as reflected in (x) the Company’s most recent Form 10-K, Form 10-Q or Form 8-K, as the case may be, (y) a more recent public announcement by the Company or (z) any other notice by the Company or the
Transfer Agent setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within three (3) Business Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by
the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. By written notice to the Company, the Holder may increase or decrease the Maximum Percentage to any other percentage not in
excess of 9.99% specified in such notice; provided that (i) any such increase will not be effective until the sixty-first (61st) day after such
notice is delivered to the Company, and (ii) any such increase or decrease will apply only to the Holder and not to any other holder of Notes. Notwithstanding the foregoing, (i) the limitations in this Section 3(d)(i) shall not apply
to any Holder of this Note if, as of the Subscription Date, the Holder beneficially owned in excess of 9.99% of the Company’s outstanding shares of Common Stock and (ii) the limitations in this Section 3(d(i) shall not apply to the
original Holder of this Note (but shall apply to subsequent Holders) if, after the Subscription Date, such original Holder (or its affiliates) acquires beneficial ownership of any additional shares of Common Stock (other than shares of Common Stock
acquired upon conversion of this Note). 
 (ii) The Company shall not be obligated to issue any shares of Common Stock
upon conversion of this Note if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may issue upon conversion of the Notes without breaching the Company’s obligations under
the rules or regulations of the Principal Market (the “Exchange Cap”), except that such limitation shall not apply in the event that the Company (A) obtains the approval of its stockholders as required by the applicable rules
of the Principal Market for issuances of Common Stock in excess of such amount or (B) obtains a written opinion from counsel to the Company (it being agreed that in-house counsel shall be acceptable) that such approval is not required, which
opinion shall be reasonably satisfactory to the Required Holders. Until such approval or written opinion is obtained, no purchaser of the Notes pursuant to the Securities Purchase Agreement (the “Purchasers”) shall be issued in the
aggregate upon conversion of Notes, shares of Common Stock in an amount greater than the product of the Exchange Cap multiplied by a fraction, the numerator of which is the principal amount of Notes issued to such Purchaser pursuant to the
Securities Purchase Agreement on the Closing Date and the denominator of which is the aggregate principal amount of all Notes issued to the Purchasers pursuant to the Securities Purchase Agreement on the Closing Date (with respect to each Purchaser,
the “Exchange Cap Allocation”). In the event that any Purchaser shall sell or otherwise transfer any of such Purchaser’s Notes, the transferee shall be allocated a pro rata portion of such Purchaser’s Exchange Cap
Allocation, and the restrictions of the prior sentence shall apply to such transferee with respect to the portion of the Exchange Cap Allocation allocated to such transferee. In the event that any holder of Notes shall convert all of such
holder’s Notes into a number of shares of Common Stock which, in the aggregate, is less than such holder’s Exchange Cap Allocation, then the difference between such holder’s Exchange Cap Allocation and the number of shares of Common
Stock actually issued to such holder shall be allocated to the respective Exchange Cap Allocations of the remaining holders of Notes on a pro rata basis in proportion to the aggregate principal amount of the Notes then held by each such holder.

  

 4 

 (4) RIGHTS UPON EVENT OF DEFAULT. 
 (a) Event of Default. Each of the following events shall constitute an “Event of Default”: 
 (i) the failure of the applicable Registration Statement required to be filed pursuant to the Registration Rights Agreement to be declared
effective by the SEC on or prior to the date that is one hundred and twenty (120) days after the applicable Effectiveness Deadline (as defined in the Registration Rights Agreement), or, while the applicable Registration Statement is required to
be maintained effective pursuant to the terms of the Registration Rights Agreement, the effectiveness of the applicable Registration Statement lapses for any reason (including, without limitation, the issuance of a stop order) or is unavailable to
any holder of the Notes for sale of all of such holder’s Registrable Securities (as defined in the Registration Rights Agreement) in accordance with the terms of the Registration Rights Agreement, and such lapse or unavailability continues for
a period of ten (10) consecutive Business Days or for more than an aggregate of thirty (30) Business Days in any 365-day period (other than days during an Allowable Grace Period (as defined in the Registration Rights Agreement));

 (ii) the suspension from trading or failure of the Common Stock to be listed on the Principal Market or on an Eligible
Market for a period of ten (10) consecutive Business Days or for more than an aggregate of twenty (20) Business Days in any 365-day period; 
 (iii) the Company’s (A) failure to issue a certificate to the Holder or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon
conversion of any Conversion Amount on or prior to the date which is fifteen (15) Business Days after the applicable Conversion Date or (B) notice, written or oral, to any holder of the Notes, including by way of public announcement or
through any of its agents, at any time, of its intention not to comply with a request for conversion of any Notes into shares of Common Stock that is tendered in accordance with the provisions of the Notes; 
 (iv) at any time following the twentieth (20th) consecutive Business Day that the Holder’s Authorized Share Allocation is less than the number of shares of Common Stock that the Holder would be entitled to receive upon
a conversion of the full Conversion Amount of this Note (without regard to any limitations on conversion set forth in Section 3(d) or otherwise); 
 (v) the Company’s failure to pay to the Holder any amount of Principal, Interest, Late Charges or other amounts when and as due under
this Note (including, without limitation, the Company’s failure to pay any redemption payments or amounts hereunder), except, in the case of a failure to pay Interest and Late Charges when and as due, in which case only if such failure
continues for a period of at least five (5) Business Days; 
 (vi) any acceleration prior to maturity of any Indebtedness
of the Company or any of its Subsidiaries under or pursuant to the Credit Agreement or any other Indebtedness of the Company or any of its Subsidiaries in excess of $10,000,000 other than with respect to any Other Notes; 
 (vii) the Company or any of its Significant Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar
Federal, foreign or state law for the relief of debtors (collectively, “Bankruptcy Law”), (A) commences a voluntary case, (B) consents to the entry of an order for relief against it in an involuntary case,
(C) consents to the appointment of a receiver, trustee, assignee, liquidator or similar official (a “Custodian”), (D) makes a general assignment for the benefit of its creditors or (E) admits in writing that it is
generally unable to pay its debts as they become due; 
 (viii) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that (A) is for relief against the Company or any of its Significant Subsidiaries in an involuntary case, (B) appoints a Custodian of the Company or any of its Significant Subsidiaries or (C) orders the
liquidation of the Company or any of its Significant Subsidiaries; 
 (ix) a final judgment or judgments for the payment of
money aggregating in excess of $10,000,000 are rendered against the Company or any of its Significant Subsidiaries and which judgments are not, within ninety (90) days after the entry thereof, bonded, discharged or stayed pending appeal, or are
not discharged within ninety (90) days after the expiration of such stay; provided, however, that any judgment which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $10,000,000 amount
set forth above so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which written statement shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance
or an indemnity and the Company will receive the proceeds of such insurance or indemnity within thirty (30) days of the issuance of such judgment; 
  

 5 

 (x) the Company breaches any representation, warranty, covenant or other term or
condition of any Transaction Document (including either of the Guarantees) in a manner that is materially adverse in the aggregate to the Holder, except, in the case of a breach of a covenant which is curable, only if such breach continues for a
period of at least twenty (20) consecutive Business Days; 
 (xi) any breach or failure in any respect to comply with
Section 16 of this Note; or 
 (xii) any Event of Default (as defined in the Other Notes) occurs with respect to any
Other Notes. 
 (b) Redemption Right. Upon the occurrence of an Event of Default with respect to this Note or any Other
Note, the Company shall within one (1) Business Day deliver written notice thereof via facsimile and overnight courier (an “Event of Default Notice”) to the Holder. At any time after the earlier of the Holder’s receipt of
an Event of Default Notice and the Holder becoming aware of an Event of Default, the Holder may require the Company to redeem all or any portion of this Note by delivering written notice thereof (the “Event of Default Redemption
Notice”) to the Company, which Event of Default Redemption Notice shall indicate the portion of this Note the Holder is electing to redeem. Each portion of this Note subject to redemption by the Company pursuant to this Section 4(b)
shall be redeemed by the Company at a price equal to the greater of (i) the product of (x) the Conversion Amount to be redeemed and (y) the Redemption Premium and (ii) the product of (A) the Conversion Rate with respect to
such Conversion Amount in effect at such time as the Holder delivers an Event of Default Redemption Notice and (B) the Closing Sale Price of the Common Stock on the date immediately preceding such Event of Default (the “Event of Default
Redemption Price”). Redemptions required by this Section 4(b) shall be made in accordance with the provisions of Section 13. To the extent redemptions required by this Section 4(b) are deemed or determined by a court of
competent jurisdiction to be prepayments of the Note by the Company, such redemptions shall be deemed to be voluntary prepayments. The parties hereto agree that in the event of the Company’s redemption of any portion of the Note under this
Section 4(b), the Holder’s damages would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity
for the Holder. Accordingly, any Redemption Premium due under this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity and not as a penalty.

 (5) RIGHTS UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL. 
 (a) Assumption. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity
assumes in writing all of the obligations of the Company under this Note and the other Transaction Documents in accordance with the provisions of this Section 5(a) pursuant to written agreements, including agreements to deliver to each holder
of Notes in exchange for such Notes a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to the Notes, including, without limitation, having a principal amount and interest rate equal to
the principal amounts and the interest rates of the Notes held by such holder, having similar conversion rights as the Notes and having similar ranking to the Notes, (ii) the Successor Entity (including its Parent Entity) is a publicly traded
corporation whose common stock is quoted on or listed for trading on an Eligible Market and (iii) the credit risk of the Successor Entity to the Holder in relation to this Note is no greater than that of the Company prior to the Fundamental
Transaction, as reasonably determined by the Company’s Board of Directors in good faith based on the customary methods of evaluating credit risk and exposure. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall
succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Note referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Note with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of the Fundamental Transaction, the Successor Entity
shall deliver to the Holder confirmation that there shall be issued upon conversion or redemption of this Note at any time after the consummation of the Fundamental Transaction, in lieu of the shares of the Company’s Common Stock (or other
securities, cash, assets or other property) issuable upon the conversion or redemption of the Notes prior to such Fundamental Transaction, such shares of the publicly traded common stock (or their equivalent) of the Successor Entity (including its
Parent Entity), as adjusted in accordance with the provisions of this Note. The provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations on the
conversion or redemption of this Note. 
  

 6 

 (b) Redemption Right. No sooner than fifteen (15) days nor later than ten
(10) days prior to the consummation of a Change of Control, but not prior to the public announcement of such Change of Control, the Company shall deliver written notice thereof via facsimile and overnight courier to the Holder (a
“Change of Control Notice”). At any time during the period beginning after the Holder’s receipt of a Change of Control Notice and ending twenty (20) Trading Days after the consummation of such Change of Control, the Holder
may require the Company to redeem all or any portion of this Note by delivering written notice thereof (“Change of Control Redemption Notice”) to the Company, which Change of Control Redemption Notice shall indicate the Conversion
Amount the Holder is electing to redeem. The portion of this Note subject to redemption pursuant to this Section 5 shall be redeemed by the Company in cash at a price equal to the greater of (i) the product of (x) the Conversion
Amount being redeemed and (y) the quotient determined by dividing (A) the greater of the Closing Sale Price of the Common Stock immediately prior to the consummation of the Change of Control, the Closing Sale Price immediately following
the public announcement of such proposed Change of Control and the Closing Sale Price of the Common Stock immediately prior to the public announcement of such proposed Change of Control by (B) the Conversion Price and (ii) 115% of the
Conversion Amount being redeemed (the “Change of Control Redemption Price”). Redemptions required by this Section 5 shall be made in accordance with the provisions of Section 13 and shall have priority to payments to
stockholders in connection with a Change of Control. To the extent redemptions required by this Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments of the Note by the Company, such redemptions shall be
deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this Section 5, but subject to Section 3(d), until the Change of Control Redemption Price is paid in full, the Conversion Amount submitted for redemption under
this Section 5(c) may be converted, in whole or in part, by the Holder into Common Stock pursuant to Section 3. The parties hereto agree that in the event of the Company’s redemption of any portion of the Note under this
Section 5(b), the Holder’s damages would be uncertain and difficult to estimate because of the parties’ inability to predict future interest rates and the uncertainty of the availability of a suitable substitute investment opportunity
for the Holder. Accordingly, any redemption premium due under this Section 5(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual loss of its investment opportunity and not as a penalty.

 (6) RIGHTS UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS. 
 (a) Purchase Rights. If at any time the Company grants, issues or sells any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the
aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations or restrictions on the
convertibility of this Note) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined
for the grant, issue or sale of such Purchase Rights. 
 (b) Other Corporate Events. In addition to and not in
substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of
Common Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon a conversion of this Note, (i) in addition to the shares of Common Stock
receivable upon such conversion, such securities or other assets to which the Holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by the Holder upon the consummation of such Corporate
Event (without taking into account any limitations or restrictions on the convertibility of this Note) or (ii) in lieu of the shares of Common Stock otherwise receivable upon such conversion, such securities or other assets received by the
holders of shares of Common Stock in connection with the consummation of such Corporate Event in such amounts as the Holder would have been entitled to receive had this Note initially been issued with conversion rights for the form of such
consideration (as opposed to shares of Common Stock) at a conversion rate for such consideration commensurate with the Conversion Rate. The provisions of this Section shall apply similarly and equally to successive Corporate Events and shall be
applied without regard to any limitations on the conversion or redemption of this Note. 
  

 7 

 (7) RIGHTS UPON ISSUANCE OF OTHER SECURITIES. 
 (a) Adjustment of Conversion Price upon Issuance of Common Stock. If and whenever on or after the Subscription Date, the Company
issues or sells, or in accordance with this Section 7(a) is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding
Excluded Securities) for a consideration per share (the “New Issuance Price”) less than a price (the “Applicable Price”) equal to the Conversion Price in effect immediately prior to such issue or sale (the foregoing
a “Dilutive Issuance”), then immediately after such Dilutive Issuance, the Conversion Price then in effect shall be reduced to an amount equal the product of (A) the Conversion Price in effect immediately prior to such Dilutive
Issuance and (B) the quotient determined by dividing (1) the sum of (I) the product derived by multiplying the Conversion Price in effect immediately prior to such Dilutive Issuance and the number of shares of Common Stock Deemed
Outstanding immediately prior to such Dilutive Issuance plus (II) the consideration, if any, received by the Company upon such Dilutive Issuance, by (2) the product derived by multiplying (I) the Applicable Price in effect immediately
prior to such Dilutive Issuance by (II) the number of shares of Common Stock Deemed Outstanding immediately after such Dilutive Issuance. For purposes of determining the adjusted Conversion Price under this Section 7(a), the following
shall be applicable: 
 (i) Issuance of Options. If the Company in any manner grants or sells any Options and the
lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion or exchange or exercise of any Convertible Securities issuable upon exercise of such Option is less than the Applicable
Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section 7(a)(i), the
“lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion or exchange or exercise of any Convertible Securities issuable upon exercise of such Option” shall be equal to
the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon granting or sale of the Option, upon exercise of the Option and upon conversion or exchange or exercise
of any Convertible Security issuable upon exercise of such Option. No further adjustment of the Conversion Price shall be made upon the actual issuance of such share of Common Stock or of such Convertible Securities upon the exercise of such Options
or upon the actual issuance of such Common Stock upon conversion or exchange or exercise of such Convertible Securities. 
 (ii) Issuance of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon such conversion or exchange or
exercise thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price
per share. For the purposes of this Section 7(a)(ii), the “lowest price per share for which one share of Common Stock is issuable upon such conversion or exchange or exercise” shall be equal to the sum of the lowest amounts of
consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the issuance or sale of the Convertible Security and upon the conversion or exchange or exercise of such Convertible Security. No further
adjustment of the Conversion Price shall be made upon the actual issuance of such share of Common Stock upon conversion or exchange or exercise of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon
exercise of any Options for which adjustment of the Conversion Price had been or are to be made pursuant to other provisions of this Section 7(a), no further adjustment of the Conversion Price shall be made by reason of such issue or sale.

 (iii) Change in Option Price or Rate of Conversion. If the purchase price provided for in any Options, the
additional consideration, if any, payable upon the issue, conversion, exchange or exercise of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exchangeable or exercisable for Common Stock changes at
any time, the Conversion Price in effect at the time of such change shall be adjusted to the Conversion Price which would have been in effect at such time had such Options or Convertible Securities provided for such changed purchase price,
additional consideration or changed conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of 

  

 8 

 
this Section 7(a)(iii), if the terms of any Option or Convertible Security that was outstanding as of the Subscription Date are changed in the manner
described in the immediately preceding sentence, then such Option or Convertible Security and the Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such change. No
adjustment shall be made if such adjustment would result in an increase of the Conversion Price then in effect. 
 (iv) Calculation of Consideration Received. In case any Option is issued in
connection with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto, such Options will be deemed to have been
issued for the difference of (x) the aggregate fair market value of such Options and other securities issued or sold in such integrated transaction, less, (y) the fair market value of the securities other than such Option, issued or sold
in such transaction, and the other securities issued or sold in such integrated transaction will be deemed to have been issued or sold for the balance of the consideration received by the Company. If any Common Stock, Options or Convertible
Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount received by the Company therefor. If any Common Stock, Options or Convertible Securities are issued
or sold for a consideration other than cash, the amount of the consideration other than cash received by the Company will be the fair value of such consideration, except where such consideration consists of securities, in which case the amount of
consideration received by the Company will be the Closing Sale Price of such securities on the date of receipt. The fair value of any consideration other than cash or securities will be determined jointly by the Company and the Required Holders. If
such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such consideration will be determined, at the Company’s
expense, within five (5) Business Days after the tenth (10th) day following the Valuation Event by an independent, reputable appraiser jointly
selected by the Company and the Required Holders. The determination of such appraiser shall be deemed binding upon all parties absent manifest error. 
 (v) Record Date. If the Company takes a record of the holders of Common Stock for the purpose of entitling them (A) to receive
a dividend or other distribution payable in Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue
or sale of the Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be. 
 (b) Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time on or after the
Subscription Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such
subdivision will be proportionately reduced. If the Company at any time on or after the Subscription Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number
of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased. 
 (c)
Other Events. If any event occurs of the type contemplated by the provisions of this Section 7 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock
rights or other rights with equity features), then the Company’s Board of Directors will make an appropriate adjustment in the Conversion Price so as to protect the rights of the Holder under this Note; provided that no such adjustment will
increase the Conversion Price as otherwise determined pursuant to this Section 7. 
 (d) Expiration of Options or
Convertible Securities. Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the
Conversion Price pursuant to the terms of Section 7(a), the Conversion Price shall be readjusted to such Conversion Price as would have obtained had such Option or Convertible Security never been issued. 
  

 9 

 (8) COMPANY’S RIGHT OF OPTIONAL REDEMPTION. 
 (a) Optional Redemption. The Company shall have the right to redeem from time to time all or any portion of the Conversion Amount
then remaining under this Note as designated in the Optional Redemption Notice (as defined below), as of the Optional Redemption Date (as defined below) (an “Optional Redemption”). The portion of this Note subject to redemption
pursuant to this Section 8 shall be redeemed by the Company in cash at a price equal to the greater of (i) the product of (x) the Conversion Amount being redeemed and (y) the quotient determined by dividing (A) the average
of the Weighted Average Price of the Common Stock for the ten (10) consecutive Trading Days immediately preceding the Optional Redemption Notice Date by (B) the Conversion Price and (ii) 100% percent of the Conversion Amount being
redeemed (the “Optional Redemption Price” and, collectively with the Event of Default Redemption Price and the Change of Control Redemption Price, the “Redemption Prices” and each, a “Redemption
Price”) on the Optional Redemption Date; provided, however, that if there is an Equity Conditions Failure, the Optional Redemption Price shall be a price equal to the greater of (i) the product of (x) the Conversion Amount being
redeemed and (y) the quotient determined by dividing (A) the average of the Weighted Average Price of the Common Stock for the ten (10) consecutive Trading Days immediately preceding the Optional Redemption Notice Date by (B) the
Conversion Price and (ii) 115% percent of the Conversion Amount being redeemed. The Company may exercise its right to require redemption under this Section 8(a) by delivering a written notice thereof by facsimile and overnight courier to
all, but not less than all, of the holders of Notes and the Transfer Agent (the “Optional Redemption Notice” and, collectively with the Event of Default Redemption Notice and the Change of Control Redemption Notice, the
“Redemption Notices” and each, a “Redemption Notice” and the date all of the holders received such notice is referred to as the “Optional Redemption Notice Date”). The Optional Redemption Notice
delivered shall be irrevocable and shall state (A) the date on which the Optional Redemption shall occur (the “Optional Redemption Date”) which date shall be no sooner than twenty (20) Trading Days following the Optional
Redemption Notice Date and no later than thirty (30) Trading Days following the Optional Redemption Notice Date and (B) the aggregate Conversion Amount of the Notes which the Company has elected to be subject to Optional Redemption from
all of the holders of the Notes pursuant to this Section 8 (and analogous provisions under the Other Notes) on the Optional Redemption Date. All Conversion Amounts converted by the Holder after the Optional Redemption Notice Date shall reduce
the Conversion Amount of this Note required to be redeemed on the Optional Redemption Date. Redemptions made pursuant to this Section 8 shall be made in accordance with Section 13. 
 (b) Pro Rata Redemption Requirement. If the Company elects to cause an Optional Redemption pursuant to Section 8(a), then it
must simultaneously take the same action with respect to the Other Notes. If the Company elects to cause an Optional Redemption pursuant to Section 8(a) (or similar provisions under the Other Notes) with respect to less than all of the
Conversion Amounts of the Notes then outstanding, then the Company shall require redemption of a Conversion Amount from each of the holders of the Notes equal to the product of (i) the aggregate Conversion Amount of Notes which the Company has
elected to cause to be redeemed pursuant to Section 8(a), multiplied by (ii) a fraction, the numerator of which is the sum of the aggregate Original Principal Amount of the Notes purchased by such holder and the denominator of which is the
sum of the aggregate Original Principal Amount of the Notes purchased by all holders (such fraction with respect to each holder is referred to as its “Redemption Allocation Percentage”, and such amount with respect to each holder is
referred to as its “Pro Rata Redemption Amount”). In the event that the initial holder of any Notes shall sell or otherwise transfer any of such holder’s Notes, the transferee shall be allocated a pro rata portion of such
holder’s Redemption Allocation Percentage and Pro Rata Redemption Amount. 
 (9) COMPANY’S RIGHT OF MANDATORY CONVERSION.

 (a) Mandatory Conversion. If at any time from and after the Subscription Date (the “Mandatory Conversion
Eligibility Date”), (i) the Weighted Average Price of the Common Stock exceeds for at least ten (10) Trading Days in any thirty (30) consecutive Trading Day period following the Mandatory Conversion Eligibility Date (the
“Mandatory Conversion Measuring Period”) 135% of the Conversion Price on the Issuance Date (as adjusted for any stock splits, stock dividends, recapitalizations, combinations, reverse stock splits or other similar events during such
period), (ii) there is no Equity Conditions Failure and (iii) the Company is in compliance with the covenant relating to total leverage ratio contained in Section 4(q) of the Securities Purchase Agreement, the Company shall have the
right to require the Holder to convert all, or any portion, of the Conversion Amount then remaining under this Note as designated in the Mandatory Conversion Notice into fully paid, validly issued and nonassessable shares of Common Stock in
accordance with Section 3(c) hereof at the Conversion Rate as of the Mandatory Conversion Date (as defined below) (a “Mandatory Conversion”). The Company may exercise its right to require 

  

 10 

 
conversion under this Section 9(a) by delivering within not more than two (2) Trading Days following the end of any such Mandatory Conversion
Measuring Period a written notice thereof by facsimile and overnight courier to all, but not less than all, of the holders of Notes and the Transfer Agent (the “Mandatory Conversion Notice” and the date all of the holders received
such notice is referred to as the “Mandatory Conversion Notice Date”). The Company may deliver one (1) Mandatory Conversion Notice hereunder and the Mandatory Conversion Notice shall be irrevocable. The Mandatory Conversion
Notice shall state (i) the Trading Day selected for the Mandatory Conversion in accordance with Section 9(a), which Trading Day shall be at least twenty (20) Business Days but not more than sixty (60) Business Days following the
Mandatory Conversion Notice Date (the “Mandatory Conversion Date”), (ii) the aggregate Conversion Amount of the Notes subject to mandatory conversion from all of the holders of the Notes pursuant to this Section 9 (and
analogous provisions under the Other Notes) and (iii) the number of shares of Common Stock to be issued to such Holder on the Mandatory Conversion Date. All Conversion Amounts converted by the Holder after the Mandatory Conversion Notice Date
shall reduce the Conversion Amount of this Note required to be converted on the Mandatory Conversion Date. The mechanics of conversion set forth in Section 3(c) shall apply to any Mandatory Conversion as if the Company and the Transfer Agent
had received from the Holder on the Mandatory Conversion Date a Conversion Notice with respect to the Conversion Amount being converted pursuant to the Mandatory Conversion. 
 (b) Pro Rata Conversion Requirement. If the Company elects to cause a conversion of any Conversion Amount of this Note pursuant to
Section 9(a), then it must simultaneously take the same action in the same proportion with respect to the Other Notes. If the Company elects a Mandatory Conversion of this Note pursuant to Section 9(a) (or similar provisions under the
Other Notes) with respect to less than all of the Conversion Amounts of the Notes then outstanding, then the Company shall require conversion of a Conversion Amount from each of the holders of the Notes equal to the product of (i) the aggregate
Conversion Amount of Notes which the Company has elected to cause to be converted pursuant to Section 9(a), multiplied by (ii) a fraction, the numerator of which is the sum of the aggregate Original Principal Amount of the Notes purchased
by such holder and the denominator of which is the sum of the aggregate Original Principal Amount of the Notes purchased by all holders (such fraction with respect to each holder is referred to as its “Conversion Allocation
Percentage,” and such amount with respect to each holder is referred to as its “Pro Rata Conversion Amount”). In the event that the initial holder of any Notes shall sell or otherwise transfer any of such holder’s
Notes, the transferee shall be allocated a pro rata portion of such holder’s Conversion Allocation Percentage and the Pro Rata Conversion Amount. 
 (10) [Reserved.] 
 (11) NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company
will not, by amendment of its Certificate of Incorporation, Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms of this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action as may be required to protect the rights of the Holder of this Note.

 (12) RESERVATION OF AUTHORIZED SHARES. 
 (a) Reservation. The Company shall initially reserve out of its authorized and unissued Common Stock a number of shares of Common
Stock for each of the Notes equal to 130% of the Conversion Rate with respect to the Conversion Amount of each such Note as of the Issuance Date. So long as any of the Notes are outstanding, the Company shall take all action necessary to reserve and
keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the Notes, 130% of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of
the Notes then outstanding; provided that at no time shall the number of shares of Common Stock so reserved be less than the number of shares required to be reserved by the previous sentence (without regard to any limitations on conversions) (the
“Required Reserve Amount”). The initial number of shares of Common Stock reserved for conversions of the Notes and each increase in the number of shares so reserved shall be allocated pro rata among the holders of the Notes based on
the principal amount of the Notes held by each holder at the Closing (as defined in the Securities Purchase Agreement) or increase in the number of reserved shares, as the case may be (the “Authorized Share Allocation”). In the
event that a holder shall sell or otherwise transfer any of such holder’s Notes, each transferee shall be allocated a pro rata portion of such holder’s Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any
Person which ceases to hold any Notes shall be allocated to the remaining holders of Notes, pro rata based on the principal amount of the Notes then held by such holders. 
  

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 (b) Insufficient Authorized Shares. If at any time while any of the Notes remain
outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of the Notes at least a number of shares of Common Stock equal to the
Required Reserve Amount (an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to
reserve the Required Reserve Amount for the Notes then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty
(60) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting, the
Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend to the
stockholders that they approve such proposal. 
 (13) HOLDER’S REDEMPTIONS. 
 (a) Mechanics. The Company shall deliver the applicable Event of Default Redemption Price to the Holder within five
(5) Business Days after the Company’s receipt of the Holder’s Event of Default Redemption Notice. If the Holder has submitted a Change of Control Redemption Notice in accordance with Section 5(b), the Company shall deliver the
applicable Change of Control Redemption Price to the Holder concurrently with the consummation of such Change of Control if such notice is received prior to the consummation of such Change of Control and within five (5) Business Days after the
Company’s receipt of such notice otherwise. The Company shall deliver the Optional Redemption Price to the Holder on the Optional Redemption Date. In the event of a redemption of less than all of the Conversion Amount of this Note, the Company
shall promptly cause to be issued and delivered to the Holder a new Note (in accordance with Section 20(c)) representing the outstanding Principal which has not been redeemed. In the event that the Company does not pay the applicable Redemption
Price to the Holder within the time period required, at any time thereafter and until the Company pays such unpaid Redemption Price in full, the Holder shall have the option, in lieu of redemption, to require the Company to promptly return to the
Holder all or any portion of this Note representing the Conversion Amount that was submitted for redemption and for which the applicable Redemption Price (together with any Late Charges thereon) has not been paid. Upon the Company’s receipt of
such notice, (x) the Redemption Notice shall be null and void with respect to such Conversion Amount, (y) the Company shall immediately return this Note, or issue a new Note (in accordance with Section 20(c)) to the Holder
representing such Conversion Amount and (z) the Conversion Price of this Note or such new Notes shall be adjusted to the lesser of (A) the Conversion Price as in effect on the date on which the Redemption Notice is voided and (B) the
lowest Closing Bid Price of the Common Stock during the period beginning on and including the date on which the Redemption Notice is delivered to the Company and ending on and including the date on which the Redemption Notice is voided. The
Holder’s delivery of a notice voiding a Redemption Notice and exercise of its rights following such notice shall not affect the Company’s obligations to make any payments of Late Charges which have accrued prior to the date of such notice
with respect to the Conversion Amount subject to such notice. 
 (b) Redemption by Other Holders. Upon the
Company’s receipt of notice from any of the holders of the Other Notes for redemption or repayment as a result of an event or occurrence substantially similar to the events or occurrences described in Section 4(b) or Section 5(b)
(each, an “Other Redemption Notice”), the Company shall immediately forward to the Holder by facsimile a copy of such notice. If the Company receives a Redemption Notice and one or more Other Redemption Notices, during the period
beginning on and including the date which is three (3) Business Days prior to the Company’s receipt of the Holder’s Redemption Notice and ending on and including the date which is three (3) Business Days after the Company’s
receipt of the Holder’s Redemption Notice and the Company is unable to redeem all principal, interest and other amounts designated in such Redemption Notice and such Other Redemption Notices received during such seven (7) Business Day
period, then the Company shall redeem a pro rata amount from each holder of the Notes (including the Holder) based on the principal amount of the Notes submitted for redemption pursuant to such Redemption Notice and such Other Redemption Notices
received by the Company during such seven (7) Business Day period. 
  

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 (14) RESTRICTION ON REDEMPTION AND CASH DIVIDENDS. 
 (a) Until all of the Notes have been converted, redeemed or otherwise satisfied in accordance with their terms, the Company will not, and
will not permit any of its Subsidiaries to, without the prior express written consent of the Required Holders, declare or pay any dividends (other than dividends payable solely in Capital Stock (as defined in the Securities Purchase Agreement) of
such Person) or return any capital to, its stockholders or other equity holders, or authorize or make any other distribution, payment or delivery of property or cash to its stockholders or equity holders as such, or redeem, retire, purchase or
otherwise acquire, directly or indirectly, for consideration, any shares of any class of its Capital Stock now or hereafter outstanding (or any warrants for or options or stock appreciation rights in respect of any of such shares), or set aside any
funds for any of the foregoing purposes, or permit any of its Subsidiaries to purchase or otherwise acquire for consideration any shares of any class of the Capital Stock of the Company or any of its Subsidiaries, as the case may be, now or
hereafter outstanding (or stock appreciation or similar rights issued by such Person with respect to its Capital Stock) (all of the foregoing “Dividends”), except that: (i) any Subsidiary of the Company may pay Dividends to the
holders of its Capital Stock, (ii) the Company may make noncash repurchases of Capital Stock deemed to occur upon exercise of stock options if such Capital Stock represents a portion of the exercise price of such options, (iii) the Company
may pay cash Dividends to the holders of its Common Stock and the Company may make cash repurchases of Capital Stock; provided that (x) no Event of Default is then in existence or would result from such payment of Dividends or cash
repurchases of Capital Stock, and (y) the aggregate amount of all cash Dividends and cash repurchases of Capital Stock shall not exceed $25,000,000 in any fiscal year of the Company, and (iv) the Company may make cash repurchases of
Capital Stock pursuant to employee compensation arrangements, so long as no Event of Default is then in existence or would result therefrom. 
 (b) The Company will not, and will not permit any of its Subsidiaries to, create or otherwise cause or suffer to exist any encumbrance or restriction which prohibits or otherwise restricts (i) the ability of any
other Subsidiary to (A) pay Dividends or make other distributions or pay any Indebtedness owed to the Company or any other Subsidiary, (B) make loans or advances to the Company or any other Subsidiary or (C) transfer any of its
properties or assets to the Company or any Subsidiary or (ii) the ability of the Company or any of its Subsidiaries to create, incur, assume or suffer to exist any Lien upon its property or assets, other than prohibitions or restrictions
existing under or by reason of (A) the Credit Agreement and the other Credit Documents (as defined in the Credit Agreement), (B) applicable law, (C) customary non-assignment provisions entered into in the ordinary course of business,
(D) Permitted Liens and any documents or instruments governing the terms of any Indebtedness or other obligations secured by any such Liens, provided that such prohibitions or restrictions apply only to the assets subject to such Liens,
(E) customary provisions restricting subletting or assignment of any lease governing a leasehold interest of a Subsidiary, provided that such restrictions apply only to leasehold interest created by such lease, (F) customary
restrictions and conditions contained in any agreement relating to the sale of any property permitted under Section 9.2 of the Credit Agreement pending the consummation of such sale, provided that such restrictions or conditions apply
only to the property subject to such sale; and (G) any restriction in effect at the time such Subsidiary becomes a Subsidiary of the Company, so long as such agreement was not entered into in connection with or in contemplation of such person
becoming a Subsidiary of the Company. 
 (15) VOTING RIGHTS. The Holder shall have no voting rights as the holder of this Note, except
as required by law, including but not limited to the General Corporate Law of the State of Delaware, and as expressly provided in this Note. 
 (16) COVENANTS. 
 (a) Rank. All payments due under this Note (i) shall rank pari passu
with all Other Notes and (ii) shall be senior to all other Indebtedness of the Company and its Subsidiaries other than Permitted Senior Indebtedness as provided in Section 30 hereof. 
 (b) Incurrence of Indebtedness. So long as this Note is outstanding, the Company shall not, and the Company shall not permit any of
its Subsidiaries to, contract, create, incur, assume or suffer to exist any Indebtedness, other than (i) the Indebtedness evidenced by this Note and the Other Notes and (ii) Permitted Indebtedness. 
  

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 (c) Existence of Liens. So long as this Note is outstanding, the Company will not,
and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with respect to any property or assets of any kind (real or personal, tangible or intangible) of the Company or any such Subsidiary, whether
now owned or hereafter acquired, or sell any such property or assets subject to an understanding or agreement, contingent or otherwise, to repurchase such property or assets (including sales of accounts receivable or notes with recourse to the
Company or any of its Subsidiaries) or assign any right to receive income, or file or authorize the filing of any financing statement under the Uniform Commercial Code or any other similar notice of Lien under any similar recording or notice
statute, except for Permitted Liens. 
 (d) Restricted Payments. The Company shall not, and the Company shall not
permit any of its Subsidiaries to, directly or indirectly, redeem, defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open market purchases, tender
offers, private transactions or otherwise), all or any portion of any Permitted Indebtedness other than (i) Permitted Senior Indebtedness and (ii) Indebtedness to trade creditors incurred in the ordinary course of business, whether by way
of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness if at the time such payment is due or is otherwise made or, after giving effect to such payment, an event constituting, or that with the passage of time and
without being cured would constitute, an Event of Default has occurred and is continuing. 
 (17) PARTICIPATION. The Holder, as the
holder of this Note, shall be entitled to receive such dividends paid and distributions made to the holders of Common Stock to the same extent as if the Holder had converted this Note into Common Stock (without regard to any limitations on
conversion herein or elsewhere) and had held such shares of Common Stock on the record date for such dividends and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution to the holders of
Common Stock. 
 (18) VOTE TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The affirmative vote at a meeting duly called for such purpose or
the written consent without a meeting of the Required Holders shall be required for any change or amendment to this Note or the Other Notes. 
 (19) TRANSFER. This Note may be offered, sold, assigned or transferred by the Holder without the consent of the Company, subject only to the provisions of Section 2(f) of the Securities Purchase Agreement. In addition, the Notes
may not be transferred in increments of less than $1,000,000 (provided, that such minimum amount shall not apply in the case of (x) a transfer of the remaining Principal amount of this Note or (y) during the continuance of an Event of
Default). 
 (20) REISSUANCE OF THIS NOTE. 
 (a) Transfer. If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will
forthwith issue and deliver upon the order of the Holder a new Note (in accordance with Section 20(c)), registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and, if less then the entire
outstanding Principal is being transferred, a new Note (in accordance with Section 20(c)) to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this Note, acknowledge and agree
that, by reason of the provisions of Section 3(c)(iii) and this Section 20(a), following conversion or redemption of any portion of this Note, the outstanding Principal represented by this Note may be less than the Principal stated on the
face of this Note. 
 (b) Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation,
upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section 20(c)) representing the outstanding Principal. 
 (c) Issuance of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note
(i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding (or in the case of a new Note being issued pursuant to Section 20(a) or
Section 20(c), the Principal designated by the Holder which, when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal remaining outstanding under this Note immediately
prior to such issuance of new Notes), 

  

 14 

 
(iii) shall have an issuance date, as indicated on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall
include on the face of such new Note the legends set forth on the face of this Note, (v) shall have the same rights and conditions as this Note, and (vi) shall represent accrued and unpaid Interest and Late Charges on the Principal and
Interest of this Note, if any, from the Issuance Date. 
 (21) REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE
RELIEF. The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or
other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. Amounts set forth or provided for herein with respect
to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof).
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach
or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required.

 (22) PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection
or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note or (b) there occurs any workout, bankruptcy,
reorganization, receivership of the Company or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action
or in connection with such workout, bankruptcy, reorganization, receivership or other proceeding, including, but not limited to, attorneys’ fees and disbursements. 
 (23) CONSTRUCTION; HEADINGS. This Note shall be deemed to be jointly drafted by the Company and all the Purchasers and shall not be construed against any person as the drafter hereof. The headings of this Note
are for convenience of reference and shall not form part of, or affect the interpretation of, this Note. 
 (24) FAILURE OR INDULGENCE NOT
WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or
further exercise thereof or of any other right, power or privilege. 
 (25) DISPUTE RESOLUTION. In the case of a dispute as to the
determination of the Closing Bid Price, the Closing Sale Price or the arithmetic calculation of the Conversion Rate or Weighted Average Price or any Redemption Price, the Company shall submit the disputed determinations or arithmetic calculations
via facsimile within one (1) Business Day of receipt of the Conversion Notice or Redemption Notice or other event giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such
determination or calculation within three (3) Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within three (3) Business Days submit via facsimile (a) the
disputed determination of the Closing Bid Price, the Closing Sale Price or the Weighted Average Price to an independent, reputable investment bank selected by the Company and approved by the Holder or (b) the disputed arithmetic calculation of
the Conversion Rate or any Redemption Price to the Company’s independent, outside accountant. The Company, at the Company’s expense, shall cause the investment bank or the accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the Holder of the results no later than five (5) Business Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s determination or
calculation, as the case may be, shall be binding upon all parties absent demonstrable error. 
  

 15 

 (26) NOTICES; PAYMENTS. 
 (a) Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given
in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Note, including in reasonable detail a description of such action and
the reason therefore. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying, the
calculation of such adjustment and (ii) at least twenty (20) days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect
to any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the
public prior to or in conjunction with such notice being provided to the Holder. 
 (b) Payments. Whenever any payment
of cash is to be made by the Company to any Person pursuant to this Note, such payment shall be made in lawful money of the United States of America by a check drawn on the account of the Company and sent via overnight courier service to such Person
at such address as previously provided to the Company in writing (which address, in the case of each of the Purchasers, shall initially be as set forth on the Schedule of Buyers attached to the Securities Purchase Agreement); provided that the
Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out such request and the Holder’s wire transfer instructions. Whenever any amount
expressed to be due by the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business Day and, in the case of any Interest Date which is not the date on which this
Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of Interest due on such date. Any amount of Principal or other amounts due under the Transaction Documents, other than
Interest, which is not paid when due shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount at the rate of thirteen and one quarter percent (13.25%) per annum from the date such
amount was due until the same is paid in full (“Late Charge”). 
 (27) CANCELLATION. After all Principal, accrued
Interest and other amounts at any time owed on this Note has been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued. 
 (28) WAIVER OF NOTICE. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase Agreement. 
 (29) GOVERNING LAW. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of
the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. The Company hereby irrevocably submits to the jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. In the event
that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such
statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude
the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING
OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. 
  

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 (30) SUBORDINATION. 
 (a) The indebtedness and the rights and obligations evidenced hereby are subordinate in the manner and to the extent set forth in the
Subordination Agreement, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms, and each holder of this instrument or agreement, by its acceptance hereof, irrevocably agrees to be bound by the
provisions of the Subordination Agreement. 
 (b) Nothing contained in this Section 30 or elsewhere in this Note
or in the Subordination Agreement is intended to or shall impair, as between the Company, its creditors (other than the holders of Permitted Senior Indebtedness) and the Holder, the obligation of the Company, which obligation are absolute and
unconditional, to pay to the Holder the principal of and interest on this Note as and when the same shall become due and payable in accordance with the terms hereof, or is intended to or shall affect the relative rights of the Holder and creditors
of the Company (other than the holders of Permitted Senior Indebtedness), nor shall anything contained herein or therein prevent the Holder from exercising all remedies otherwise permitted by applicable law upon the occurrence of an Event of Default
under this Note, subject to the rights, if any, under this Section 30 and the Subordination Agreement of the holders of Permitted Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of
any such remedy. 
 (c) Except as expressly provided in the Subordination Agreement, nothing contained in this
Section 30 shall affect the obligation of the Company to make, or prevent the Company from making, payments of the principal of or interest on this Note, or redeeming this Note, in accordance with the provisions hereof. 
 (d) Notwithstanding any contrary provision of this Section 30 or the Subordination Agreement, (i) the issuance and
delivery of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 3 hereof shall not be deemed to constitute a payment or distribution on account of the principal of or interest on this Note or on
account of the purchase or other acquisition of all or any portion of this Note for purposes of the Subordination Agreement. The payment, issuance or delivery of cash, property or securities (other than Common Stock) upon conversion of all or any
portion of this Note shall be deemed to constitute payment on account of the principal of or interest on this Note or portion thereof. 
 (e) Nothing contained in this Section 30 or elsewhere in this Note is intended to or shall impair, as among the Company, its creditors and the Holder, the right, which is absolute and unconditional, to
convert this Note in accordance with the terms hereof. 
 (31) CERTAIN DEFINITIONS. For purposes of this Note, the following terms
shall have the following meanings: 
 (a) “Approved Stock Plan” means any employee benefit plan or agreement
which has been approved by the Board of Directors of the Company, pursuant to which the Company’s securities may be issued in the ordinary course of business to any consultant, employee, officer or director for services provided to the Company.

 (b) “Bloomberg” means Bloomberg Financial Markets. 
 (c) “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New
York are authorized or required by law to remain closed. 
 (d) “Calendar Quarter” means each of: the period
beginning on and including January 1 and ending on and including March 31; the period beginning on and including April 1 and ending on and including June 30; the period beginning on and including July 1 and ending on and
including September 30; and the period beginning on and including October 1 and ending on and including December 31. 
  

 17 

 (e) “Change of Control” means (i) any Fundamental Transaction other
than (x) any reorganization, recapitalization, reclassification of the Common Shares or merger to which the Company is a party in which holders of the Company’s voting power immediately prior to such reorganization, recapitalization,
reclassification or merger continue after such reorganization, recapitalization, reclassification or merger to hold publicly traded securities and, directly or indirectly, the voting power of the surviving entity or entities necessary to elect a
majority of the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities, or (y) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation
of the Company, or (ii) during any period of twenty four (24) consecutive months beginning on or after December 31, 2007, individuals who at the beginning of such period constituted the Company’s Board of Directors (together with
any new or replacement directors whose election by the Company’s Board of Directors, or whose nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then still in office who
were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the directors then in office or (iii) any “change in
control” or similar event under the Credit Agreement. 
 (f) “Closing Bid Price” and “Closing
Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on
an extended hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York Time, as reported by
Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such
security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the
foregoing bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to
agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 25. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar
transaction during the applicable calculation period. 
 (g) “Closing Date” shall have the meaning set forth
in the Securities Purchase Agreement, which date is the date the Company initially issued Notes pursuant to the terms of the Securities Purchase Agreement. 
 (h) “Common Stock Deemed Outstanding” means, at any given time, the number of shares of Common Stock outstanding at such time, plus the number of shares of Common Stock deemed to be outstanding
pursuant to Sections 7(a)(i) and 7(a)(ii) hereof regardless of whether the Options or Convertible Securities are actually exercisable at such time, but excluding any Common Stock owned or held by or for the account of the Company or issuable upon
conversion of the Notes. 
 (i) “Contingent Obligation” shall have the meaning set forth in the Securities
Purchase Agreement. 
 (j) “Convertible Securities” means any stock or securities (other than Options)
directly or indirectly convertible into or exercisable or exchangeable for Common Stock. 
 (k) “Credit
Agreement” means the Credit Agreement, dated December 31, 2007, by and among the Company, ABX Air, Inc. and CHI Acquisition Corp., the Lenders from time to time party thereto, SunTrust Bank, as Administrative Agent, Regions Bank, as
Syndication Agent, and Fifth Third Bank and Merrill Lynch Commercial Finance Corp., as Co-Documentation Agents, including all amendments, restatements, supplements or other modifications and any other credit agreement, loan agreement, note
agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of any indebtedness or other financial accommodation that has been incurred to extend, replace, refinance or refund in whole or in part the
indebtedness and other obligations outstanding under the Credit Agreement (subject to the restrictions on modification of the Credit Agreement set forth in the Subordination Agreement). 
  

 18 

 (l) “Eligible Market” means the Principal Market, The New York Stock
Exchange, Inc., the American Stock Exchange or The Nasdaq Capital Market. 
 (m) “Equity Conditions” means
each of the following conditions: (i) on each day during the period beginning three (3) months prior to the applicable date of determination and ending on and including the applicable date of determination (the “Equity Conditions
Measuring Period”), either (x) the Registration Statement filed pursuant to the Registration Rights Agreement shall be effective and available for the resale of all remaining Registrable Securities in accordance with the terms of the
Registration Rights Agreement and there shall not have been any Grace Periods (as defined in the Registration Rights Agreement) or (y) all shares of Common Stock issuable upon conversion of the Notes shall be eligible for sale without
restriction and without the need for registration under any applicable federal or state securities laws; (ii) during the Equity Conditions Measuring Period, the Common Stock is designated for quotation on the Principal Market or any other
Eligible Market and shall not have been suspended from trading on such exchange or market (other than suspensions of not more than two (2) days and occurring prior to the applicable date of determination due to business announcements by the
Company) nor shall delisting or suspension by such exchange or market been threatened or pending either (A) in writing by such exchange or market or (B) by falling below the then effective minimum listing maintenance requirements of such
exchange or market; (iii) during the Equity Conditions Measuring Period, the Company shall have delivered Conversion Shares upon conversion of the Notes to the holders on a timely basis as set forth in Section 2(c)(ii) hereof (and
analogous provisions under the Other Notes); (iv) any applicable shares of Common Stock to be issued in connection with the event requiring determination may be issued in full without violating the rules or regulations of the Principal Market
or any applicable Eligible Market; (v) during the Equity Conditions Measuring Period, the Company shall not have failed to make any payments within five (5) Business Days of when such payment is due pursuant to any Transaction Document;
(vi) during the Equity Conditions Measuring Period, there shall not have occurred either (A) the public announcement of a pending, proposed or intended Fundamental Transaction which has not been abandoned, terminated or consummated or
(B) an Event of Default; (vii) the Company shall have no knowledge of any fact that would cause (x) the Registration Statements required pursuant to the Registration Rights Agreement not to be effective and available for the resale of
all remaining Registrable Securities in accordance with the terms of the Registration Rights Agreement or (y) any shares of Common Stock issuable upon conversion of the Notes not to be eligible for sale without restriction pursuant to Rule
144(k) and any applicable state securities laws; and (viii) during the Equity Conditions Measurement Period, the Company otherwise shall have been in material compliance with and shall not have materially breached any provision, covenant,
representation or warranty of any Transaction Document which breach has not been cured prior to the end of such period. 
 (n)
“Equity Conditions Failure” means that (i) on any day during the period commencing five (5) Trading Days prior to the Optional Redemption Notice Date through the Optional Redemption Date or (ii) on any day during the
period commencing five (5) Trading Days prior to the Mandatory Conversion Notice Date through the Mandatory Conversion Date, the Equity Conditions have not been satisfied (or waived in writing by the Holder). 
 (o) “Excluded Securities” means any Common Stock issued or issuable (pursuant to any issued Convertible Securities):
(i) in connection with any Approved Stock Plan; (ii) upon conversion of the Notes; (iii) pursuant to any bona fide firm commitment underwritten public offering with a nationally recognized underwriter, which generates gross proceeds
to the Company in excess of $40,000,000 (other than an “at-the-market offering” as defined in Rule 415(a)(4) under the 1933 Act and “equity lines”); (iv) upon conversion of any Options or Convertible Securities which are
outstanding on the day immediately preceding the Subscription Date, provided that the terms of such Options or Convertible Securities are not materially amended, modified or changed on or after the Subscription Date in a manner adverse to the
Holder; (v) directly on an arm’s-length basis to an unrelated third party that is a counterparty, such counterparty’s affiliates or their respective stockholders, in connection with bona fide, strategic transactions, stock
acquisitions, mergers, asset acquisitions, joint ventures, collaborations, licenses of products or technology, or similar transactions approved by the Company’s Board of Directors; provided that such issuance is made at a price
equal to or greater than the arithmetic average of the Weighted Average Price of the Common Stock for the five 

  

 19 

 
(5) consecutive Trading Days immediately prior to the date of such issuance and the primary purpose of which is not to raise equity capital; and
(vi) in connection with any financing transaction (including, without limitation, private placements), the primary purpose of such issuance is to finance bona fide strategic transactions, stock acquisitions, mergers, asset acquisitions, joint
ventures, collaborations, licenses of products or technology, or similar transactions approved by the Company’s Board of Directors; provided that in the case of (vi), in amounts not to exceed in the aggregate 20% of the
outstanding shares of Common Stock as of the beginning of any calendar year (the “20% Threshold”), in which case only those shares of Common Stock (or Common Stock underlying any Convertible Securities so issued) in excess of the
20% Threshold shall not be Excluded Securities. 
 (p) “Fundamental Transaction” means that the Company
shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose
of all or substantially all of the properties or assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares
of Common Stock (not including any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock
purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of either the outstanding
shares of Common Stock or the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such
stock purchase agreement or other business combination), (v) reorganize, recapitalize or reclassify its Common Stock, or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 30% or more on a fully diluted basis of the aggregate Voting Stock of the Company or shall have
obtained the power (whether or not exercised) to elect a majority of the members of the board of directors (or similar governing body) of the Company (other than pursuant to proxies solicited by the board of directors of the Company in connection
with an election of directors), or (vii) the Company shall cease to beneficially own (as defined in Rule 13d-3 under the Exchange Act) 100% on a fully diluted basis of the Capital Stock of ABX Air, Inc., CHI Acquisition Corp. and Cargo Holdings
International, Inc. 
 (q) “GAAP” means United States generally accepted accounting principles, consistently
applied. 
 (r) “Guarantees” means (i) that certain Guaranty made by the Company and certain
Subsidiaries of the Company pursuant to which the Company and such Subsidiaries have guaranteed for the benefit of the holders of the ABX Air Senior Notes (as defined in the Securities Purchase Agreement) the obligations of the Company under the ABX
Air Senior Notes and the other Transaction Documents as the same may be amended, supplemented or otherwise modified from time to time and (ii) that certain Guarantee made by ABX Air, Inc. and certain other Subsidiaries of the Company pursuant
to which ABX Air, Inc. and such other Subsidiaries have guaranteed for the benefit of the holders of the Notes, the obligations of the Company under the Notes and the other Transaction Documents as the same may be amended, supplemented or otherwise
modified from time to time. 
 (s) “Indebtedness” shall have the meaning set forth in the Securities Purchase
Agreement. 
 (t) “Lien” shall mean any mortgage, pledge, security interest, encumbrance, lien or charge of
any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement or any lease in the nature thereof). 
 (u) “Maximum Amount” means, as of any date of determination, (a) $370,000,000 plus (b) unpaid interest,
fees, costs, expenses, indemnities and other amounts payable pursuant to the terms of the Senior Documents (as defined in the Subordination Agreement), whether or not the same are added to the principal amount of the Senior Obligations (as defined
in the Subordination Agreement) and including the same as would accrue and become due but for the commencement of an Insolvency Proceeding (as defined in the Subordination Agreement), whether or not such amounts are allowed or allowable in whole or
in part in any such Insolvency Proceeding minus (c) the sum of all principal payments of term loans constituting Senior Obligations (including voluntary and mandatory prepayments). 
  

 20 

 (v) “Options” means any rights, warrants or options to subscribe for or
purchase Common Stock or Convertible Securities. 
 (w) “Parent Entity” of a Person means an entity that,
directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the
largest public market capitalization as of the date of consummation of the Fundamental Transaction. 
 (x) “Permitted
Indebtedness” means (i) Permitted Senior Indebtedness, (ii) Indebtedness of a Subsidiary of the Company to the Company or any other Subsidiary of the Company, or of the Company to any Subsidiary of the Company,
(iii) Indebtedness secured by Permitted Liens described in clause (ix) of the definition of Permitted Liens so long as the aggregate principal amount of all such Indebtedness arising on or after December 31, 2007 does not exceed
$75,000,000, (iv) existing Indebtedness listed in Section 3(r) of the Disclosure Schedule to the Securities Purchase Agreement and any renewals, extensions, refundings or refinancings of such Indebtedness, provided the amount thereof is
not increased and the maturity of principal is not shortened, (v) Indebtedness under Hedge Agreements (as defined in the Securities Purchase Agreement) (provided that such Hedge Agreements are entered into to hedge actual risks and not for
speculative purposes), (vi) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn against insufficient funds in
the ordinary course of business, provided that such Indebtedness is extinguished within two Business Days of its incurrence, and (vii) other unsecured Indebtedness of the Company and its Subsidiaries in an aggregate amount not to exceed
at any time $10,000,000. 
 (y) “Permitted Liens” means (i) Liens for taxes and assessments not yet due
and payable or Liens for taxes being contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company) have been established, (ii) Liens in respect of property or
assets of the Company or any of its Subsidiaries imposed by law which were incurred in the ordinary course of business, such as operators’, vendors’, repairmens’, construction, carriers’, warehousemen’s and mechanics’
Liens, statutory landlord’s Liens, and other similar Liens arising in the ordinary course of business, and (x) which do not in the aggregate materially detract from the value of such property or assets or materially impair the use thereof
in the operation of the business of the Company or any of its Subsidiaries or (y) which are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing the forfeiture or sale of the property or
asset subject to such Lien, (iii) Liens securing the Company’s obligations under Permitted Senior Indebtedness, (iv) Liens on assets of the Company and its Subsidiaries existing on December 31, 2007 and listed on
Section 3(v) of the Disclosure Schedule to the Securities Purchase Agreement and extensions, renewals and replacements thereof; provided that no such Lien is spread to cover any additional property after December 31, 2007 and that
the principal amount of Indebtedness secured thereby shall not exceed the principal amount of Indebtedness so secured at the time of such extension, renewal or replacement, (v) Liens arising from judgments, decrees or attachments in
circumstances not constituting an Event of Default under Section 4, (vi) Liens (other than any Lien imposed by ERISA) incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment
insurance and other types of social security, old age pension or public liability obligation, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, trade contracts, leases, government contracts, performance
and return-of-money bonds and other similar obligations incurred in the ordinary course of business (exclusive of obligations in respect of the payment for borrowed money), (vii) leases or subleases granted to others not interfering in any
material respect with the business of the Company or any of its Subsidiaries, (viii) easements, encroachments, covenants, rights-of-way, restrictions, minor defects or irregularities in title and other similar charges or encumbrances not
interfering in any material respect with the ordinary conduct of the business of the Company or any of its Subsidiaries and municipal and zoning ordinances, (ix) Liens arising from UCC financing statements regarding Capital Leases (as defined
in the Securities Purchase Agreement) permitted by the Credit Agreement, (x) Liens on assets of the Company or any of its Subsidiaries, each of which Liens (A) existed on such assets before the time of their acquisition by the Company or
such Subsidiary, were not created in contemplation thereof and secure Indebtedness permitted by clause (iii) of the definition of Permitted Indebtedness, or (B) existed on such assets of any Subsidiary before the time it became a
Subsidiary, were not created in contemplation of the owner thereof becoming a Subsidiary and secure Indebtedness permitted by clause 

  

 21 

 
(iii) of the definition of Permitted Indebtedness, or (C) was created solely for the purpose of securing Indebtedness representing, or incurred to
finance, the cost of such assets and secure Indebtedness permitted by clause (iii) of the definition of Permitted Indebtedness; provided that, with respect to Liens referred to in this clause (x)(C), (i) such Liens and the
Indebtedness secured thereby are incurred within 90 days of the acquisition of such asset, (ii) such Liens shall at all times be confined to the assets (or, with respect to any such asset, the group of assets together with which it is acquired)
so acquired and improvements, alterations, replacements and modifications thereto and (iii) the principal amount of the Indebtedness secured by such Liens shall in no case exceed 100% of the cost of the assets (or group of assets) subject
thereto at the time of acquisition thereof, and provided, further that with respect to each Lien referred to in this clause (x), any extension, renewal or replacement thereof shall be permitted only to the extent that the principal
amount of Indebtedness secured thereby shall not exceed the principal amount of Indebtedness so secured at the time of such extension, renewal or replacement, (xi) Liens granted by a Subsidiary of the Company in favor of the Company or another
Subsidiary of the Company in respect of Indebtedness or other obligations owed by such Subsidiary to the Company or such other Subsidiary, (xii) Liens that are rights of setoff relating to deposit accounts in favor of banks and other depositary
institutions arising in the ordinary of business; (xiii) Liens securing the Cargo Holdings Intercompany Loan, and (xiv) Liens on the Aeronavali Aircraft (as defined in the Credit Agreement) granted to Massachusetts Mutual Life Insurance
Company, as Indemnifying Parties Representative. 
 (z) “Permitted Senior Indebtedness” means the
principal of (and premium, if any), interest on, and all fees and other amounts (including, without limitation, any reasonable out-of-pocket costs, enforcement expenses (including reasonable out-of-pocket legal fees and disbursements), collateral
protection expenses and other reimbursement or indemnity obligations relating thereto) payable by Company and/or its Subsidiaries under or in connection with the Credit Agreement, in a maximum amount not to exceed at any time the Maximum Amount.

 (aa) “Person” means an individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 
 (bb) “Principal Market” means the Nasdaq National Market. 
 (cc) “Redemption
Premium” means (i) in the case of the Events of Default described in Section 4(a)(i) - (vi) and (ix) - (xii), 115% or (ii) in the case of the Events of Default described in Section 4(a)(vii) - (viii), 100%. 

(dd) “Registration Rights Agreement” means that certain registration rights agreement between the Company and the
initial holders of the Notes relating to, among other things, the registration of the resale of the Common Stock issuable upon conversion of the Notes. 
 (ee) “Required Holders” means the holders of Notes representing at least a majority of the aggregate principal amount of the Notes then outstanding. 
 (ff) “SEC” means the United States Securities and Exchange Commission. 
 (gg) “Securities Purchase Agreement” means that certain securities purchase agreement dated December 31, 2007 by and
among the Company and the initial holders of the Notes pursuant to which the Company issued the Notes. 
 (hh)
“Significant Subsidiaries” means the “significant subsidiaries” as such term is used under Regulation S-X significant subsidiaries under the Securities Exchange Act of 1934, as amended. 
 (ii) “Subordination Agreement” means the Subordination Agreement, dated as of December 31, 2007, by and among
SunTrust Bank, as Administrative Agent for the Senior Creditors (as defined in the Subordination Agreement), each of the Subordinated Creditors (as defined in the Subordination Agreement), the Company, ABX Air, Inc., CHI Acquisition Corp. and
certain Subsidiaries of the Company identified therein. 
 (jj) “Subscription Date” means the Issuance Date
set forth on the first page of this Note. 
  

 22 

 (kk) “Subsidiary” or “Subsidiaries” shall have the
meaning set forth in the Securities Purchase Agreement. 
 (ll) “Successor Entity” means the Person, which
may be the Company, formed by, resulting from or surviving any Fundamental Transaction or the Person with which such Fundamental Transaction shall have been made, provided that if such Person is not a publicly traded entity whose common stock or
equivalent equity security is quoted or listed for trading on an Eligible Market, Successor Entity shall mean such Person’s Parent Entity. 
 (mm) “Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the
principal securities exchange or securities market on which the Common Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5
hours or any day that the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time of trading on such exchange or market, then
during the hour ending at 4:00:00 p.m., New York Time). 
 (nn) “Voting Stock” of a Person means capital
stock of such Person of the class or classes pursuant to which the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or trustees of such Person
(irrespective of whether or not at the time capital stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency). 
 (oo) “Weighted Average Price” means, for any security as of any date, the dollar volume-weighted average price for such
security on the Principal Market during the period beginning at 9:30:01 a.m., New York Time (or such other time as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York Time (or such other
time as the Principal Market publicly announces is the official close of trading) as reported by Bloomberg through its “Volume at Price” functions, or, if the foregoing does not apply, the dollar volume-weighted average price of such
security in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York Time (or such other time as such market publicly announces is the official open of trading), and ending
at 4:00:00 p.m., New York Time (or such other time as such market publicly announces is the official close of trading) as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such
hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the
Weighted Average Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair market value as mutually determined by the Company and the
Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 25. All such determinations to be appropriately adjusted for any stock dividend,
stock split, stock combination or other similar transaction during the applicable calculation period. 
 (32) DISCLOSURE. Upon receipt
or delivery by the Company of any notice in accordance with the terms of this Note, unless the Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic information relating to the Company or
its Subsidiaries, the Company shall within one (1) Business Day after any such receipt or delivery publicly disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that
a notice contains material, nonpublic information relating to the Company or its Subsidiaries, the Company so shall indicate to such Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall
be allowed to presume that all matters relating to such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries. 
 [Signature Page Follows] 
  

 23 

 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the Issuance Date set out
above. 
  

			
	ABX HOLDINGS, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  

 24 

 EXHIBIT I 
 ABX HOLDINGS, INC. 
 CONVERSION NOTICE 
 Reference is made to the Senior Subordinated Convertible Note (the “Note”) issued to the undersigned by ABX Holdings, Inc. (the
“Company”). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated below into shares of Common Stock, par value $0.01 per share (the
“Common Stock”), as of the date specified below. 
  

	
	  
 Date of
Conversion:                                      
                                        
                                        
                                        
                                        
           
  
 Aggregate Conversion Amount to be
converted:                                      
                                        
                                        
                                      
  
 Please confirm the following information:
  
 Conversion
Price:                                       
                                        
                                        
                                        
                                        
              
  
 Number of shares of Common Stock to be
issued:                                       
                                        
                                        
                                 
  
 Please issue the Common Stock into which the Note is being converted in the following name and to
the following address:
  
 Issue
to:                                       
                                        
                                        
                                        
                                        
                                
  
                                       
                                        
                                        
                                        
                                        
                                   
  
                                       
                                        
                                        
                                        
                                        
                                   
  
 Facsimile
Number:                                       
                                        
                                        
                                        
                                        
          
  
 Authorization:                                    
                                        
                                        
                                        
                                        
                       
  
 By:                                      
                                        
                                        
                                        
                                        
              
  
 Title:                                     
                                        
                                        
                                        
                                        
           
  
 Dated:                                     
                                        
                                        
                                        
                                        
                                        
       
  
 Account
Number:                                       
                                        
                                        
                                        
                                        
              
     (if electronic book
entry transfer)
  
 Transaction Code
Number:                                       
                                        
                                        
                                        
                                     
     (if electronic book entry transfer)

 ACKNOWLEDGMENT 
 The Company hereby acknowledges this Conversion Notice and hereby directs National City Bank to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated
[                    ] from the Company and acknowledged and agreed to by National City Bank. 
  

			
	ABX HOLDINGS, INC.
		
	By:	 	 
		 	Name:
		 	Title:

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