Document:

Security Agreement

 Exhibit 10.4 
 SECURITY AGREEMENT 
 THIS SECURITY AGREEMENT (this
“Agreement”), dated as of November 30, 2012, is made by and among Avantair, Inc., a Delaware corporation (the “Grantor”), in favor of Barry Gordon, as collateral agent (including any
successor, assignee or transferee thereof, the “Collateral Agent”) for itself and the parties listed on Schedule 1 hereto (each a “Secured Party,” and together, the “Secured Parties”).

 WHEREAS, the Grantor and the Secured Parties have entered into that certain Note and Warrant Purchase Agreement of even date
herewith (as amended or otherwise modified from time to time, the “Note and Warrant Purchase Agreement”), pursuant to which the Grantor has issued and may issue certain senior secured convertible promissory notes (such notes, as
amended or modified from time to time, the “Initial Notes”) and certain warrants to purchase shares of the Grantor’s common stock, $0.0001 per share (such warrants, as amended or modified from time to time, the
“Warrants”); 
 WHEREAS, the Grantor and additional Secured Parties may enter into one or more securities
purchase agreements (as amended or otherwise modified from time to time, the “Additional Purchase Agreements”), pursuant to which the Grantor may issue certain additional senior secured convertible promissory notes in substantially
the same form as the Initial Notes (such senior secured convertible promissory notes, as amended or modified from time to time, the “Additional Notes” and together with the Initial Notes, the “Notes”) and other
securities (the “Related Securities”) pursuant to the financings contemplated in the “Liquidity and Capital Resources” section of the “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” of the Company’s Form 10-Q filed with the U.S. Securities and Exchange Commission on November 16, 2012; 
 WHEREAS, the Grantor and the Collateral Agent have agreed to execute and deliver this Agreement, among other things, to secure the obligations of the Grantor under the Note and Warrant Purchase Agreement
and the Initial Notes and under any Additional Notes and Additional Purchase Agreements. 
 The Grantor and the Collateral Agent
hereby agree as follows: 
 SECTION 1. Definitions; Interpretation. 

(a) As used in this Agreement, the following terms shall have the following meanings: 

“Collateral” has the meaning set forth in Section 2. 

“Transaction Documents” means this Agreement, the Note and Warrant Purchase Agreement, the Additional Purchase
Agreements, the Notes, the Warrants, the Related Securities and all other documents, agreements and instruments delivered to the Collateral Agent and Secured Parties under the Notes or in connection with the Obligations (as defined below), each as
amended, modified, renewed, extended or replaced from time to time. 

 “Event of Default” has the meaning set forth in the Notes. 

“Lien” means any mortgage, deed of trust, pledge, security interest, assignment, deposit arrangement, charge or
encumbrance, lien, or other type of preferential arrangement. 
 “Obligations” means the indebtedness,
liabilities and other obligations of the Grantor to the Secured Parties and the Collateral Agent under or in connection with (a) the Transaction Documents, including without limitation, the unpaid principal of the Notes, all interest accrued
thereon, all fees and all other amounts payable by the Grantor to the Secured Parties thereunder or in connection therewith, whether now existing or hereafter arising, and whether due or to become due, absolute or contingent, liquidated or
unliquidated, determined or undetermined and (b) debt securities that may be issued pursuant to the financings contemplated in the “Liquidity and Capital Resources” section of the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” of the Company’s Form 10-Q filed with the U.S. Securities and Exchange Commission on November 16, 2012 (and related documentation), including without limitation, the unpaid principal of
such indebtedness, all interest accrued thereon, all fees and all other amounts payable by the Grantor to the holders of such indebtedness thereunder or in connection therewith, whether now existing or hereafter arising, and whether due or to become
due, absolute or contingent, liquidated or unliquidated, determined or undetermined. 
 “Permitted Liens” mean:
(i) Liens in favor of the Secured Parties in respect of the Obligations hereunder; (ii) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate
proceedings and which are adequately reserved for in accordance with GAAP (as defined in the Note); (iii) Liens of materialmen, mechanics, warehousemen, carriers or employees or other like Liens arising in the ordinary course of business and
securing obligations either not delinquent or being contested in good faith by appropriate proceedings; (iv) Liens consisting of deposits or pledges to secure the payment of worker’s compensation, unemployment insurance or other social
security benefits or obligations, or to secure the performance of bids, trade contracts, leases, public or statutory obligations, surety or appeal bonds or other obligations of a like nature incurred in the ordinary course of business;
(v) easements, rights of way, servitudes or zoning or building restrictions and other minor encumbrances on real property and irregularities in the title to such property which do not in the aggregate materially impair the use or value of such
property or risk the loss or forfeiture of title thereto; (vi) non-exclusive licenses, sublicenses, assignments and similar arrangements in the ordinary course of business consistent with past practice granted in good faith and in a manner that
the Grantor’s board of directors reasonably believes is in, or is not opposed to, the Grantor’s best interests and the best interests of the Grantor’s stockholders; (vii) Liens upon or in any equipment acquired or held by the
Grantor to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing or refinancing the acquisition of such equipment, provided that the Lien is confined solely to the equipment so acquired and
accessions thereon and proceeds thereof. 
 “Person” means an individual, corporation, partnership, joint
venture, trust, unincorporated organization, governmental agency or authority, or any other entity of whatever nature. 

  
 2 

 “Purchaser Majority” means holders of a majority of the aggregate principal
amount of the Notes then outstanding. 
 “UCC” means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Florida. 
 (b) Where applicable and except as otherwise defined herein, terms used in this
Agreement shall have the meanings assigned to them in the UCC. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Notes or if not defined therein in the Note and Warrant Purchase Agreement or other
Additional Purchase Agreement related to such Note. 
 (c) In this Agreement, (i) the meaning of defined terms shall be
equally applicable to both the singular and plural forms of the terms defined; (ii) the captions and headings are for convenience of reference only and shall not affect the construction of this Agreement; (iii) the words
“hereof,” “herein,” “hereto,” “hereunder” and the like mean and refer to this Agreement as a whole and not merely to the specific Article, Section, subsection, paragraph or clause in which the respective word
appears; (iv) the words “including,” “includes” and “include” shall be deemed to be followed by the words “without limitation;” and (v) the term “or” shall not be limiting. 

SECTION 2. Security Interest. 
 (a) Subject to Permitted Liens, as security for the payment and performance of the Obligations, the Grantor hereby grants and otherwise pledges to the Collateral Agent, for the ratable benefit of the
Secured Parties, a first priority security interest, having priority over all other security interests, in all of the Grantor’s right, title and interest in, to and under all of its personal property (other than as set forth in Sections 2(b),
2(c) and 2(d) hereof) owned by Grantor wherever located and whether now existing or owned or hereafter acquired or arising (collectively, the “Collateral”) and including: 

(1) all accounts, accounts receivable, commercial tort claims, contract rights, rights to payment, chattel paper, electronic chattel
paper, letters of credit, letter of credit rights, documents, securities, money and instruments, and investment property, whether held directly or through a securities intermediary, and other obligations of any kind owed to the Grantor, however
evidenced; 
 (2) all deposits and deposit accounts with any bank, savings and loan association, credit union or like
organization, and all funds and amounts therein; 
 (3) all inventory, including, without limitation, all materials, raw
materials, parts, components, work in progress, finished goods, merchandise, supplies and all other goods that are held for sale, lease or other disposition or furnished under contracts of service or consumed in the Grantor’s business,
including, without limitation, those held for display or demonstration or out on lease or consignment; 
 (4) all equipment,
including, without limitation, all machinery, furniture, furnishings, fixtures, trade fixtures, tools, parts and supplies, automobiles, trucks, tractors and other vehicles, appliances, computer and other electronic data processing equipment and
other office equipment, computer programs and related data processing software, and all additions, substitutions, replacements, parts, accessories and accessions to and for the foregoing; 

  
 3 

 (5) all general intangibles and other personal property of the Grantor, including, without
limitation: (i) all tax and other refunds, rebates or credits of every kind and nature to which the Grantor is now or hereafter may become entitled; (ii) all goodwill, choses in action and causes of action; (iii) all interests in
limited and general partnerships and limited liability companies; and (iv) all indemnity agreements, guaranties, insurance policies, insurance claims and other contractual, equitable and legal rights of whatever kind or nature; 

(6) all books, records and other written, electronic or other documentation in whatever form maintained by or for the Grantor in
connection with the ownership of its assets or the conduct of its business or evidencing or containing information relating to the Collateral; and 
 (7) all products and proceeds, including insurance proceeds, and supporting obligations of or for any and all of the foregoing. 
 (b) Notwithstanding the foregoing, such grant of security interest shall not extend to, and the term “Collateral” shall not include: (i) any asset that is encumbered by any Lien on the date
hereof and (ii) any aircraft, fractional ownership interest in aircraft, restricted cash, deposits on aircraft and flight hour cards. 
 (c) Notwithstanding the foregoing, except for fixtures (to the extent covered by Article 9 of the UCC), such grant of a security interest shall not extend to, and the term “Collateral”
shall not include, any asset which would be real property under the law of the jurisdiction in which it is located. 
 (d)
Notwithstanding anything herein to the contrary: (i) the Grantor shall remain liable under any contracts, agreements and other documents included in the Collateral, to the extent set forth therein, to perform all of its duties and obligations
thereunder to the same extent as if this Agreement had not been executed and (ii) the Collateral Agent and Secured Parties shall not have any obligation or liability under any contracts, agreements and other documents included in the Collateral
by reason of this Agreement, nor shall the Collateral Agent nor Secured Parties be obligated to perform any of the obligations or duties of the Grantor thereunder or to take any action to collect or enforce any such contract, agreement or other
document included in the Collateral hereunder. 
 (e) This Agreement shall create a continuing security interest in the
Collateral that shall remain in effect until terminated in accordance with Section 18 hereof. 
 SECTION 3. Financing
Statements, Etc. The Grantor shall execute and deliver to the Collateral Agent, and the Grantor hereby authorizes the Collateral Agent to file (with a copy thereof to be provided to the Grantor contemporaneously therewith), at any time and from
time to time thereafter, all financing statements, financing statement assignments, continuation financing statements, and UCC filings, in form reasonably satisfactory to the Collateral Agent. The Grantor shall execute and deliver and shall take all
other action, as the Secured Parties may reasonably request, to perfect and continue perfected, maintain the priority of or provide notice of the security interest of the Collateral Agent in the Collateral (subject to the terms hereof) and to
accomplish the purposes of this Agreement. Without limiting the generality of the foregoing, the Grantor ratifies and authorizes the filing by the Collateral Agent of any financing statements filed prior to the date hereof that accomplish the
purposes of this Agreement. Notwithstanding the foregoing, the Grantor shall not be required to make any filings with the United States Federal Aviation Administration with respect to the security interest granted hereunder. 

  
 4 

 SECTION 4. Representations and Warranties. The Grantor represents and warrants to the
Collateral Agent that: 
 (a) The Grantor is a corporation duly organized, validly existing and in good standing under the law
of the jurisdiction of its incorporation and has all requisite power and authority to execute, deliver and perform its obligations under this Agreement. 
 (b) The execution, delivery and performance by the Grantor of this Agreement has been duly authorized by all necessary corporate action of the Grantor, and this Agreement constitutes the legal, valid and
binding obligation of the Grantor, enforceable against the Grantor in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other laws of general application
affecting enforcement of creditors’ rights generally, as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 

(c) As of the date hereof, the Grantor’s chief executive office and principal place of business is located at the address set forth
in Schedule 2; all other locations where the Grantor conducts business or the Collateral is kept are set forth in Schedule 2; and, as of the date hereof, all trade names and fictitious names under which the Grantor at any time in the
past has conducted or presently conducts its business operations are set forth in Schedule 2. 
 SECTION 5. Covenants
of the Grantor. Until this Agreement has terminated in accordance with Section 18 hereof, the Grantor agrees to do the following: 
 (a) The Grantor shall give written notice to the Collateral Agent within thirty (30) days following any change described below in this subsection of: (i) any change in the location of
Grantor’s chief executive office or principal place of business; (ii) any change in the locations set forth in Schedule 2; (iii) any change in its name; (iv) any changes in its identity or structure in any manner
which might make any financing statement filed hereunder incorrect or misleading; or (v) any change in its jurisdiction of organization. 
 (b) The Grantor shall not surrender or lose possession of, sell, lease, rent or otherwise dispose of or transfer any of the Collateral or any right or interest therein, except in the ordinary course of
business consistent with past practice and except to the extent of equipment that is obsolete or no longer useful to its business. 
 (c) The Grantor shall keep the Collateral free of all Liens except Permitted Liens. 
 SECTION 6. Collection of Accounts. The Grantor shall endeavor in the first instance diligently to collect all amounts due or to become due on or with respect to the accounts and other rights to
payment, except in the ordinary course of business. At the request of the Collateral Agent, upon the occurrence and during the continuance of any Event of Default in which the Notes have become due and payable, all remittances received by the
Grantor shall be held in trust for the Collateral Agent and the Secured Parties in accordance with the terms hereof. 

  
 5 

 SECTION 7. Agency. 

(a) Appointment. The Secured Parties by their acceptance of the benefits of this Agreement, hereby designate Barry Gordon as the
Collateral Agent to act as specified herein. Each Secured Party shall be deemed irrevocably to authorize the Collateral Agent to take such action on its behalf under the provisions of this Agreement and to exercise such powers and to perform such
duties hereunder as are specifically delegated to or required of the Collateral Agent by the terms hereof and such other powers as are reasonably incidental thereto. The Collateral Agent may perform any of its duties hereunder by or through its
agents or employees. 
 (b) Nature of Duties. The Collateral Agent shall have no duties or responsibilities except those
expressly set forth herein. Neither the Collateral Agent nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable for any action taken or omitted by it as such hereunder or in connection herewith or be
responsible for the consequence of any oversight or error of judgment or answerable for any loss, unless caused solely by its or their gross negligence or willful misconduct as determined by a final judgment (not subject to further appeal) of a
court of competent jurisdiction. The duties of the Collateral Agent shall be mechanical and administrative in nature; the Collateral Agent shall not have by reason of this Agreement or any other Transaction Document a fiduciary relationship in
respect of the Grantor or any Secured Party; and nothing in this Agreement or any other Transaction Document, expressed or implied, is intended to or shall be so construed as to impose upon the Collateral Agent any obligations in respect of this
Agreement or any other Transaction Document except as expressly set forth herein and therein. 
 (c) Lack of Reliance on the
Collateral Agent. Independently and without reliance upon the Collateral Agent, each Secured Party, to the extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and
affairs of the Grantor in connection with such Secured Party’s investment in Grantor, the creation and continuance of the Obligations, the transactions contemplated by the Transaction Documents, and the taking or not taking of any action in
connection therewith, and (ii) its own appraisal of the creditworthiness of the Grantor, and of the value of the Collateral from time to time, and the Collateral Agent shall have no duty or responsibility, either initially or on a continuing
basis, to provide any Secured Party with any credit, market or other information with respect thereto, whether coming into its possession before any Obligations are incurred or at any time or times thereafter. The Collateral Agent shall not be
responsible to the Grantor or any Secured Party for any recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith other than representations made by the
Collateral Agent related to its status as an accredited investor under federal and state securities laws, or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of the
Agreement or any other Transaction Document, or for the financial condition of the Grantor or the value of any of the Collateral, or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or
conditions of the Agreement or any other Transaction Document, or the financial condition of the Grantor, or the value of any of the Collateral, or the existence or possible existence of any default or Event of Default under this Agreement, or any
of the other Transaction Documents. 
 (d) Certain Rights of the Collateral Agent. Subject to this Agreement, the
Collateral Agent shall have the right, at the direction of the Purchaser Majority, to take any action with respect to the Collateral, on behalf of all of the Secured Parties. To the extent practical, the Collateral Agent shall request instructions
from the Purchaser Majority with respect 

  
 6 

 
to any material act or action (including failure to act) in connection with the Agreement or any other Transaction Document, and shall be entitled to act or refrain from acting in accordance with
the instructions of Secured Parties that are the Purchaser Majority; if such instructions are not provided despite the Collateral Agent’s request therefor, the Collateral Agent shall be entitled to refrain from such act or taking such action,
and if such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions to be taken by the Collateral Agent; and the Collateral Agent shall not incur liability to any person or entity by reason of
so refraining. Without limiting the foregoing, (i) no Secured Party shall have any right of action whatsoever against the Collateral Agent as a result of the Collateral Agent acting or refraining from acting hereunder in accordance with the
terms of the Agreement or any other Transaction Document, and the Grantor shall have no right to question or challenge the authority of, or the instructions given to, the Collateral Agent pursuant to the foregoing and (ii) the Collateral Agent
shall not be required to take any action which the Collateral Agent believes (A) could reasonably be expected to expose it to personal liability or (B) is contrary to this Agreement, the Transaction Documents or applicable law. 

(e) Reliance. The Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing,
resolution, notice, statement, certificate, telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the
Agreement and the other Transaction Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining to this Agreement and the other Transaction Documents and its duties thereunder, upon advice of
other experts selected by it. Anything to the contrary notwithstanding, the Collateral Agent shall have no obligation whatsoever to any Secured Party to assure that the Collateral exists or is owned by the Grantor or is cared for, protected or
insured or that the liens granted pursuant to the Agreement have been properly or sufficiently or lawfully created, perfected, or enforced or are entitled to any particular priority. 

(f) Indemnification. To the extent that the Collateral Agent is not reimbursed and indemnified by the Grantor to the extent
required by any of the Transaction Documents, the Secured Parties will jointly and severally reimburse and indemnify the Collateral Agent and any director, employee or agent of the Collateral Agent from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Collateral Agent or any such director, employee or
agent or agent of the Collateral Agent in performing its duties hereunder or under Transaction Documents, or in any way relating to or arising out of the Transaction Documents except for those determined by a final judgment (not subject to further
appeal) of a court of competent jurisdiction to have resulted solely from the Collateral Agent’s own gross negligence or willful misconduct. 
 (g) Resignation by the Collateral Agent. 
 (i) The Collateral Agent may
resign from the performance of all its functions and duties under this Agreement at any time by giving 30 days’ prior written notice (as provided in this Agreement) to the Grantor and the Secured Parties. Such resignation shall take effect upon
the appointment of a successor Collateral Agent pursuant to clauses (ii) and (iii) below. 

  
 7 

 (ii) Upon any such notice of resignation, the Secured Parties, acting by the Purchaser
Majority, shall appoint a successor Collateral Agent hereunder. 
 (iii) If a successor Collateral Agent shall not have been so
appointed within said thirty (30) day notice period, the Collateral Agent shall then appoint a successor Collateral Agent who shall serve as Collateral Agent until such time, if any, as the Secured Parties appoint a successor Collateral Agent
as provided above. If a successor Collateral Agent has not been appointed within such thirty (30) day notice period, the Collateral Agent may petition any court of competent jurisdiction or may interplead the Secured Parties in a proceeding for
the appointment of a successor Collateral Agent, and all fees, including, but not limited to, extraordinary fees associated with the filing of interpleader and expenses associated therewith, shall be payable by the Secured Parties on demand and
shall not be part of the Obligations or otherwise be reimbursable by the Grantor hereunder or under the Transaction Documents. 

(iv) Upon the acceptance of any appointment as Collateral Agent hereunder by a successor Collateral Agent, such successor Collateral
Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent and the retiring Collateral Agent shall be discharged from its duties and obligations under the Agreement. After
any retiring Collateral Agent’s resignation or removal hereunder as Collateral Agent, the provisions of the Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent. 

(h) Rights with Respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Collateral Agent
(i) that it shall not, and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant to any other agreement or otherwise (other than pursuant to this Agreement), or take or institute any
action against the Collateral Agent or any of the other Secured Parties in respect of the Collateral or its rights hereunder (other than any such action arising from the breach of this Agreement) and (ii) that such Secured Party has no other
rights with respect to the Collateral other than as set forth in this Agreement and the other Transaction Documents. 
 (i)
The Collateral Agent in its Individual Capacity. The Collateral Agent and its affiliates may purchase notes from, make loans to, issue letters of credit for the account of, accept deposits from and generally engage in any kind of lending or
other business with any party and its affiliates as though the Collateral Agent was not the Collateral Agent hereunder. With respect to any loans, purchases of notes or issuances of credit, if any, made by the Collateral Agent in its capacity as a
Purchaser (as defined in the Note and Warrant Purchase Agreement), the Collateral Agent in its capacity as a Secured Party shall have the same rights and powers under this Agreement as any other Secured Party and may exercise the same as though it
were not the Collateral Agent, and the terms “Secured Party” or “Secured Parties” shall include the Collateral Agent in its capacity as a Secured Party. 
 SECTION 8. Remedies. 
 (a) Upon the occurrence and during the continuance
of an Event of Default (as defined in the Note) in which the Notes have become due and payable, the Collateral Agent may declare all or any of the Obligations to be immediately due and payable and the Collateral Agent shall have, in addition to all
other rights and remedies granted to the Collateral Agent in this Agreement or the other Transaction Documents, all rights and remedies of a secured party 

  
 8 

 
under the UCC and other applicable laws. Without limiting the generality of the foregoing, upon the occurrence and during the continuance of an Event of Default in which the Notes have become due
and payable, the Collateral Agent may sell, resell, lease, use, assign, license, sublicense, transfer or otherwise dispose of any or all of the Collateral in its then condition or following any commercially reasonable preparation or processing
(utilizing in connection therewith any of Grantor’s assets, without charge or liability to the Collateral Agent therefor) at public or private sale, by one or more contracts, in one or more parcels, at the same or different times, for cash or
credit, or for future delivery without assumption of any credit risk, all as the Collateral Agent deems advisable; provided, however, that the Grantor shall be credited with the net proceeds of sale only when such proceeds are finally collected by
the Collateral Agent. The Collateral Agent shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase the whole or any part of the Collateral so sold, free of any right or equity of
redemption, which right or equity of redemption the Grantor hereby releases, to the extent permitted by law. The Grantor hereby agrees that the sending of notice by ordinary mail, postage prepaid, to the address of the Grantor set forth herein or
subsequent address that the Grantor provides to the Collateral Agent in writing, of the place and time of any public sale or of the time after which any private sale or other intended disposition is to be made, shall be deemed reasonable notice
thereof if such notice is sent ten (10) business days prior to the date of such sale or other disposition or the date on or after which such sale or other disposition may occur. 

(b) The cash proceeds actually received from the sale or other disposition or collection of the Collateral, and any other amounts
received in respect of the Collateral the application of which is not otherwise provided for herein shall be applied first, to the payment of the reasonable costs and expenses of the Collateral Agent and Secured Parties in exercising or enforcing
their rights hereunder and in collecting or attempting to collect any of the Collateral, and to the payment of all other amounts payable to the Collateral Agent or Secured Parties pursuant to Section 12 hereof; and second, to the payment of the
Obligations. Any surplus thereof that exists after payment and performance in full of the Obligations shall be promptly paid over to the Grantor or otherwise disposed of in accordance with the UCC or other applicable law. The Grantor shall remain
liable to the Secured Parties for any deficiency that exists after any sale or other disposition or collection of the Collateral. 
 SECTION 9. Certain Waivers. The Grantor waives, to the fullest extent permitted by law: (i) any right of redemption with respect to the Collateral, whether before or after sale hereunder, and
all rights, if any, of marshalling of the Collateral or other collateral or security for the Obligations; (ii) any right to require the Collateral Agent to: (A) proceed against any Person, (B) exhaust any other collateral or security
for any of the Obligations, (C) pursue any remedy in the Collateral Agent’s power or (D) except as provided herein or in any of the Transaction Documents, make or give any presentments, demands for performance, notices of
nonperformance, protests, notices of protests or notices of dishonor in connection with any of the Collateral; and (iii) all claims, damages and demands against the Collateral Agent arising out of the repossession, retention, sale or
application of the proceeds of any sale of the Collateral. 
 SECTION 10. Notices. All notices and other communications
shall be made to the address and in the manner specified in the Note and Warrant Purchase Agreement. 
 SECTION 11. No
Waiver; Cumulative Remedies. No failure on the part of the Collateral Agent to exercise, and no delay in exercising, any right, remedy, power or privilege 

  
 9 

 
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other or further exercise thereof or the exercise
of any other right, remedy, power or privilege. The rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges that may otherwise be available to the Collateral Agent. 

SECTION 12. Costs and Expenses. The Grantor agrees to pay on demand all reasonable costs and expenses of the Collateral Agent, and
the reasonable fees and disbursements of one counsel to the Collateral Agent, in connection with the enforcement or attempted enforcement of, and preservation of any rights or interests under, this Agreement, the Notes and the other Transaction
Documents, including in any out-of-court workout or other refinancing or restructuring or in any bankruptcy case, and the protection, sale or collection of, or other realization upon, any of the Collateral, including all reasonable expenses of
taking, collecting, holding, sorting, handling, preparing for sale, selling or the like and other such expenses of sales and collections of the Collateral. Any amounts payable to the Collateral Agent under this Section 12 or otherwise under
this Agreement if not paid when due shall bear interest from the date such payment is due until paid in full, at the rate of interest set forth in the Notes. 
 SECTION 13. Binding Effect. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the Grantor, the Collateral Agent and their respective successors and assigns.

 SECTION 14. Governing Law. 
 (a) This Agreement shall be governed by and construed under the laws of the State of Florida without regard to principles of conflict of laws. 

(b) THE GRANTOR HEREBY AGREES TO WAIVE, AND THE SECURED PARTIES BY THEIR ACCEPTANCE HEREOF HEREBY AGREE TO WAIVE, THEIR RESPECTIVE
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT
BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. THE GRANTOR HEREBY AGREES, AND THE SECURED PARTIES BY THEIR ACCEPTANCE HEREOF HEREBY AGREE, THAT ANY SUCH CLAIM OR CAUSE OF
ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT IN ANY WAY LIMITING THE FOREGOING, THE GRANTOR FURTHER AGREES, AND THE SECURED PARTIES BY THEIR ACCEPTANCE HEREOF FURTHER AGREE, THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED
BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR THE DOCUMENTS. A COPY OF THIS SECTION MAY BE FILED WITH ANY COURT AS WRITTEN EVIDENCE OF THE WAIVER OF THE RIGHT TO TRIAL BY JURY AND CONSENT TO TRIAL BY
COURT. 

  
 10 

 SECTION 15. Entire Agreement; Amendment. This Agreement contains the entire agreement
of the parties with respect to the subject matter hereof and shall not be amended except by the written agreement of the Grantor and the Collateral Agent. Notwithstanding the foregoing, this Agreement may not be amended and any term hereunder may
not be waived with respect to any Secured Party without the written consent of such Secured Party unless such amendment or waiver applies to all Secured Parties in the same fashion. 

SECTION 16. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be valid,
legal and enforceable under all applicable laws and regulations. If, however, any provision of this Agreement shall be invalid, illegal or unenforceable under any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be
deemed modified to conform to the minimum requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be invalid, illegal or unenforceable only to the extent of such invalidity, illegality or limitation on
enforceability without affecting the remaining provisions of this Agreement, or the validity, legality or enforceability of such provision in any other jurisdiction. 
 SECTION 17. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 
 SECTION 18. Termination. Upon the payment and performance in full of all Obligations, this Agreement shall
terminate and the Collateral Agent shall promptly, at the cost of the Grantor, execute and deliver to the Grantor such documents and instruments reasonably requested by the Grantor as shall be necessary to evidence termination of all security
interests given by the Grantor to the Collateral Agent hereunder; provided, however, that the obligations of the Grantor under Section 12 hereof shall survive such termination. 

[Remainder of Page Intentionally Left Blank] 

  
 11 

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

			
	GRANTOR:
	
	AVANTAIR, INC.
		
	By:	 	 /s/ Steve Santo

	Name:	 	Steve Santo
	Title:	 	CEO
	
	COLLATERAL AGENT:
		
	By:	 	 /s/ Barry Gordon

	Name:	 	Barry Gordon
	Title:	 	Director

 SCHEDULE 1 

Schedule of Secured Parties 
 Robert Lepofsky 
 A. Clinton Allen 
 Lawson Allen 
 Dick DeWolfe 
 Arthur Goldberg 
 Barry Gordon 
 Lorne Weil 

 SCHEDULE 2 

to the Security Agreement 
  

	 	1.	Locations of Chief Executive Office and Other Locations, Including of Collateral 

a. Chief Executive Office and Principal Place of Business: 
 4311 General Howard Drive, Clearwater, Florida 33762 
 b. Other locations where the
Grantor conducts business or the Collateral is kept: 
 None 

 

	 	2.	Trade Names and Trade Styles; Other Corporate, Trade or Fictitious Names, Etc. 

NoneRegistration Rights Agreement

 Exhibit 10.5 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT
(this “Agreement”) is entered into as of November 30, 2012 by and Avantair, Inc., a Delaware corporation (the “Company”) and the investors parties hereto (the “Investors”). 

The parties hereto agree as follows: 
 1. Certain Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in that certain Note and Warrant Purchase Agreement dated as of
November 30, 2012 by and among the Company and the Investors, as the same may be amended and/or restated from time to time (the “Note and Warrant Purchase Agreement”). As used in this Agreement, the following terms shall have
the following meanings: 
 (a) “Common Stock” means the Company’s common stock, par value $0.0001 per
share, and any securities into which such shares may hereinafter be reclassified. 
 (b) “Effective Date” shall
mean, with respect to the Registration Statement, the date on which the Registration Statement shall have been declared effective by the SEC. 
 (c) “Effectiveness Period” shall mean the period from the Closing Date until the earlier of (i) the date on which all Registrable Securities covered by such Registration Statement,
as amended from time to time, have been sold, and (ii) the date on which all Registrable Securities covered by such Registration Statement may be sold without restriction pursuant to Rule 144. 

(d) “Exchange Act” means the Securities Exchange Act of 1934, as amended, together with all rules and regulations
promulgated thereunder. 
 (e) “Holders” means the Investors or any of their respective affiliates or permitted
transferees. 
 (f) “Notes” means the Senior Secured Convertible Promissory Notes issued to the Investors
pursuant to the Note and Warrant Purchase Agreement. 
 (g) “Note Shares” means the shares of Common Stock
issuable upon the conversion of the Notes. 
 (h) “Prospectus” means the prospectus included in a Registration
Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 424(b) promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the Prospectus, including
post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

 (i) “Registrable Securities” shall mean the Note Shares and any other
securities issued or issuable with respect to in exchange for Registrable Securities, but excluding (i) any such shares sold under an effective registration statement or (ii) any such shares sold or eligible for sale pursuant to Rule 144
under the Securities Act. 
 (j) “Registration Statement” means any registration statement required to be filed
under this Agreement, including the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement. 
 (k) “SEC” means the U.S. Securities and Exchange
Commission. 
 (l) “Securities Act” means the Securities Act of 1933, as amended, together with all rules and
regulations promulgated thereunder. 
 2. Registration. 

(a) Registration. Within one hundred eighty (180) days after January 15, 2013 (or with respect to Notes Shares relating
to Notes issued after January 15, 2013, within one hundred eighty (180) days of the Closing Date relating to such Notes), the Company shall cause to be prepared and filed with the SEC a Registration Statement providing for the resale of
all Registrable Securities issued or issuable with respect to Notes issued at such time, for an offering to be made by the Holders on a continuous basis pursuant to Rule 415, provided that the Company has obtained stockholder approval to amend the
Company’s certificate of incorporation to authorize such shares as described in the Note and Warrant Purchase Agreement; provided further that if at such time the Company has not obtained such stockholder approval, the Registration Statement
shall provide for the resale of the number of Registrable Securities that are no greater than the amount of shares of Common Stock then available for issuance under the Company’s certificate of incorporation and not otherwise reserved; provided
further that in such case, the Company shall use best efforts to register the remaining Registrable Securities, by amendment to the Registration Statement or by filing an additional Registration Statement, within one hundred eighty (180) days
following the Company obtaining stockholder approval to amend the Company’s certificate of incorporation to authorized such shares. The Registration Statement shall be on Form S-1 (or if the Company is then eligible to register for resale the
Registrable Securities on Form S-3, Form S-3). The Company shall cause such Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof but in any event within two hundred forty
(240) days (two hundred seventy (270) days if the Registration Statement is reviewed by the SEC) after January 15, 2013 (or 240 or 270 days, as the case may be, after any Closing Date after January 15, 2013) , in each case,
provided that the Company has obtained stockholder approval to amend the Company’s certificate of incorporation to authorize such shares as described in the Note and Warrant Purchase Agreement. The Company shall keep such Registration Statement
continuously effective under the Securities Act until the date when all Registrable Securities covered by such 

  
 2 

 
Registration Statement have been sold, subject to any blackout periods when the Company must update the Registration Statement. Notwithstanding anything to the contrary contained herein, if the
SEC specifically prohibits the Registration Statement from including all Registrable Securities (“SEC Guidance”) (provided that the Company shall advocate with the SEC for the registration of all or the maximum number of the
Registrable Securities permitted by SEC Guidance to be included in such Registration Statement, such maximum number, the (“Rule 415 Amount”), then the Company will not be in breach of this provision by following such SEC Guidance,
and the Company will file such additional Registration Statements at the earliest practicable date on which the Company is permitted by SEC Guidance to file such additional Registration Statements related to the Registrable Securities, each
registering the Rule 415 Amount, seriatim, until all of the Registrable Securities have been registered. 
 (b) Each Holder will
furnish to the Company in writing the information specified in Item 507 and/or 508 of Regulation S-K, as applicable, of the Securities Act for use in connection with any Registration Statement or prospectus or preliminary prospectus included
therein. Each Holder agrees to promptly furnish additional information required to be disclosed in order to make the information previously furnished to the Company by such Holder not materially misleading. 

(c) The Company shall notify each Holder in writing promptly (and in any event within five business days) after receiving notification
from the SEC that a Registration Statement has been declared effective. 
 (d) Any Registration Statement required hereunder
shall contain (except if otherwise directed by the Holders of at least a majority of the Registrable Securities included in such Registration Statement) the “Plan of Distribution” attached hereto as Annex A. 

3. Registration Procedures. In connection with the Company’s registration obligations hereunder, the Company shall:

 (a) (i) prepare and file with the SEC such amendments, including post-effective amendments, to the applicable Registration
Statement as may be necessary to keep the Registration Statement continuously effective (subject to any blackout periods when the Company must update the applicable Registration Statement) as to the Registrable Securities until the date when all
Registrable Securities covered by such Registration Statement have been sold or, with respect to Registration Statements filed pursuant to Section 2(a), can be sold without restriction by Holders; (ii) cause the related Prospectus to be
amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; and (iii) respond as promptly as reasonably possible to any comments received from the SEC with respect to the
applicable Registration Statement or any amendment thereto. 
 (b) Notify each Holder as promptly as reasonably possible, and
confirm such notice in writing no later than three (3) trading days thereafter, of any of the following events: (i) the SEC notifies the Company whether there will be a “review” of the applicable Registration Statement;
(ii) the SEC comments in writing on such Registration Statement; (iii) the SEC or any other Federal or state governmental authority in writing requests any amendment or supplement to such Registration Statement or applicable Prospectus or
requests additional information 

  
 3 

 
related thereto; (iv) if the SEC issues any stop order suspending the effectiveness of such Registration Statement or initiates any action, claim, suit, investigation or proceeding (a
“Proceeding”) for that purpose; (v) the Company receives notice in writing of any suspension of the qualification or exemption from qualification of any Registrable Securities for sale in any jurisdiction, or the initiation or
threat of any Proceeding for such purpose; or (vi) the financial statements included in such Registration Statement become ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference is untrue in any material respect or any revision to such Registration Statement, Prospectus or other document is required so that it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 

(c) Use its reasonable best efforts to avoid the issuance of or, if issued, obtain the withdrawal of: (i) any order suspending the
effectiveness of each Registration Statement or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 

(d) Promptly deliver to each Holder, without charge, such reasonable number of copies of the applicable Prospectus or Prospectuses
(including each form of prospectus) and each amendment or supplement thereto as such Holder may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by the Holders in connection with
the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto. 
 (e)
(i) In the event the Company’s common stock is traded on a national securities exchange (each, a “Principal Market”), prepare and file with each Principal Market, if any, an additional shares listing application covering all of
the Registrable Securities and a notification form regarding the change in the number of the Company’s outstanding Shares; (ii) take all steps necessary to cause such Registrable Securities to be approved for listing on each Principal
Market, if any, as soon as possible thereafter; (iii) provide to each Holder notice of such listing; and (iv) maintain the listing of such Registrable Securities on each Principal Market, if any. 

(f) Prior to any public offering of Registrable Securities, register or qualify or cooperate with the Holders in connection with the
registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or “blue sky” laws of such jurisdictions within the United States as any Holder
requests in writing, to keep each such registration or qualification (or exemption therefrom) effective until the date when all Registrable Securities covered by such Registration Statement have been sold and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by a Registration Statement; provided, however, that the Company shall not be required for any such purpose to: (i) qualify
generally to do business as a foreign corporation in any jurisdiction wherein it would not be otherwise required to qualify but for the requirements of this Section (3)(f), or (ii) subject itself to taxation. 

  
 4 

 (g) Upon the occurrence of any event described in Section (3)(b)(vi) above, as promptly
as reasonably possible, prepare a supplement or amendment, including a post-effective amendment, to the applicable Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by
reference, and file any other required document so that, as thereafter delivered, neither such Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the Company may suspend sales pursuant to such Registration Statement for a period (such
period being a “Blackout Period”) of up to sixty (60) days (unless the Holders of at least a majority of the Registrable Securities consent in writing to a longer delay of up to an additional thirty (30) days) no more than
once in any twelve-month period if the Company furnishes to the Holders a certificate signed by the Company’s Chief Executive Officer stating that in the good faith judgment of the Company’s Board of Directors: (i) the offering could
reasonably be expected to materially interfere with an acquisition, corporate reorganization or other material transaction then under consideration by the Company or (ii) there is some other material development relating to the operations or
condition (financial or other) of the Company that has not been disclosed to the general public and as to which it is in the Company’s best interests not to disclose; provided further, however, that the Company may not so suspend sales
more than once in any calendar year without the written consent of the Holders of at least a majority of the Registrable Securities covered by such Registration Statement. 
 (h) Comply with all applicable rules and regulations of the SEC and each Principal Market with respect to the Company’s obligations hereunder. 

4. Registration Expenses. The Company shall pay all fees and expenses incident to the performance of or compliance with this
Agreement by the Company, including without limitation: (a) all registration and filing fees and expenses, including without limitation those related to filings with the SEC, each Principal Market, if any, and in connection with applicable
state securities or “Blue Sky” laws, (b) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing copies of Prospectuses reasonably requested by a Holder),
(c) messenger, telephone and delivery expenses, (d) fees and disbursements of counsel for the Company; (e) fees and disbursements of counsel for the Holders not to exceed $25,000, and (f) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. Each Holder shall pay any and all costs, fees, discounts or commissions attributable to the sale of its respective Registrable
Securities. 
 5. Indemnification. 
 (a) Indemnification by the Company. In the event of a registration of any Registrable Securities under the Securities Act pursuant to this Agreement, the Company will indemnify and hold harmless
each of the Holders, and their respective officers, directors and each other Person, if any, who controls or is an affiliate of such Holder within the meaning of the Securities Act, against any losses, claims, damages or liabilities (collectively,
“Losses”), to which such Holder, or such Persons may become subject under the Securities Act or otherwise, insofar as such Losses arise out of or are based upon any untrue statement or alleged untrue

  
 5 

 
statement of any material fact contained in the Registration Statement under which such Registrable Securities were registered under the Securities Act pursuant to this Agreement, any preliminary
Prospectus or final Prospectus contained therein, or any amendment or supplement thereof, including without limitation, for the avoidance of doubt, any document incorporated by referenced in any of the foregoing, or arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Holder, and each such Person for any reasonable legal or other
expenses incurred by them in connection with investigating or defending any such Losses; provided, however, that the Company will not be liable in any such case if and to the extent that any such Losses arise out of or are based upon:
(i) an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished to the Company in writing by or on behalf of such Holder or any such Person specifically for use in any such
document and specifically relating to such Holder, (ii) the failure of a Holder to deliver a Prospectus, to the extent that such Holder was required to do so under applicable securities laws, or (iii) in the case of an occurrence of an
event of the type specified in Section (3)(b)(iii)-(vi) above, the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the
receipt by such Holder of the Advice contemplated in Section 6 below. 
 (b) Indemnification by Holders. In the
event of a registration of the Registrable Securities under the Securities Act pursuant to this Agreement, each Holder will severally, but not jointly, indemnify and hold harmless the Company, and its officers, directors and each other Person, if
any, who controls the Company within the meaning of the Securities Act, against all Losses to which the Company or such Persons may become subject under the Securities Act or otherwise, insofar as such Losses arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact in the Registration Statement under which such Registrable Securities were registered under the Securities Act pursuant to this Agreement, any preliminary Prospectus or final
Prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse the Company and each such Person for any reasonable legal or other expenses incurred by them in connection with investigating or defending any such Losses; provided, however, that a Holder will be liable in any
such case if and only to the extent that any such Losses arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished in writing to the Company by or
on behalf of such Holder specifically for use in any such document and specifically relating to such Holder. 
 (c) Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom
indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees
and expenses incurred in connection with defense thereof, provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and
only) 

  
 6 

 
to the extent that such failure shall have prejudiced the Indemnifying Party. An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (ii) the Indemnifying Party
shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the named parties to any such Proceeding (including any impleaded
parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and
the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume
the defense thereof and such counsel shall be at the expense of the Indemnifying Party; provided, however, that in the event that the Indemnifying Party shall be required to pay the fees and expenses of separate counsel, the Indemnifying
Party shall only be required to pay the fees and expenses of one separate counsel for such Indemnified Party or Parties. The Indemnifying Party shall not be liable for any settlement of any such Proceeding affected without its written consent, which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within thirty days of written notice thereof to the Indemnifying
Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and
expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder). 
 (d) Contribution. If a claim for indemnification under Section 5(a) or (b) is unavailable to an Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party,
in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by
reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or related to information supplied
by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of
any Losses shall be deemed to include any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section 5 was available to such party in accordance with its terms. 

  
 7 

 The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. 

(e) Notwithstanding the provisions of this Section 5, no Holder shall be required to pay indemnification or to contribute, in the
aggregate, any amount in excess of the amount of proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding. 
 (f) The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 

6. Dispositions. Each Holder agrees that it will comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement. Each Holder further agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in
Section 3(b)(iii)-(vi), such Holder will discontinue disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement
contemplated by Section 3(g), or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental
filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop orders to enforce the provisions of this paragraph. 

7. Piggy-Back Registrations. If at any time during the Effectiveness Period, the Company shall determine to prepare and file with
the SEC a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or
their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then the Company
shall send to the each Holder written notice of such determination and if, within fifteen (15) days after receipt of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any
part of such Registrable Securities such Holder requests to be registered. Notwithstanding the foregoing, if the Company’s proposed registration of equity securities hereunder is, in whole or in part, an underwritten public offering, and the
managing underwriter of such proposed registration advises the Company that the inclusion of all Registrable Securities proposed to be included in the underwritten public offering, together with any other issued and outstanding shares of the
Company’s common stock proposed to be included therein (such other shares hereinafter collectively referred to as the “Other Shares”), would interfere with the successful

  
 8 

 
marketing of the Company’s securities, then the total number of such securities proposed to be included in such underwritten public offering shall be reduced, by the Registrable Securities
proposed to be included in such registration by the Holders and the shares requested to be included in such registration by the holders of Other Shares, on a pro rata basis, based upon the number of Registrable Securities then held by each such
Holder. The shares of the Company’s common stock that are excluded from the underwritten public offering pursuant to the preceding sentence shall be withheld from the market by the holders thereof for a period, not to exceed 90 days from the
closing of such underwritten public offering, that the managing underwriter reasonably determines as necessary in order to effect such underwritten public offering. Notwithstanding anything to the contrary contained herein, the amount of Registrable
Securities required to be included in the initial Registration Statement as described in this Section 7 shall be equal to the lesser of (a) the amount of Registrable Securities that Holders request to have so registered pursuant to this
Section 7 and (b) the maximum amount of Registrable Securities which may be included in a Registration Statement without exceeding the Rule 415 Amount. 
 8. Reports Under Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at
any time permit a Holder to sell securities of the Company to the public without registration, the Company shall: 
 (a) make
and keep public information available, as those terms are understood and defined in Rule 144, at all times after the date hereof and so long as the Company is subject to the periodic reporting requirements under Sections 13 or 15(d) of the Exchange
Act; 
 (b) file with the SEC in a timely manner all reports and other documents required of the Company under the Securities
Act and the Exchange Act; and 
 (c) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith
upon request (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144, the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that
it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form. 

9. Mergers. The Company shall not, directly or indirectly, enter into any merger, consolidation or reorganization in which the
Company shall not be the surviving corporation unless the proposed surviving corporation shall, prior to such merger, consolidation or reorganization, agree in writing to assume the obligations of the Company under this Agreement, and for that
purpose references hereunder to “Registrable Securities” shall be deemed to be references to the securities which the Holders would be entitled to receive in exchange for Registrable Securities under any such merger, consolidation or
reorganization, provided, however, that the provisions of this Agreement shall not apply in the event of any merger, consolidation or reorganization in which the Company is not the surviving corporation if the Holders are entitled to receive
in exchange therefor (i) cash or (ii) securities of the acquiring 

  
 9 

 
corporation which may be immediately sold to the public pursuant to an effective registration statement under the Securities Act or pursuant to an exemption therefrom which permits sales without
limitation as to volume or the manner of sale on a nationally recognized exchange in the United States or on a Principal Market. 
 10. Miscellaneous. 
 (a) Governing Law. This Agreement shall be
governed by, and construed and interpreted in accordance with, the laws of the State of Delaware, without giving effect to principles of conflicts of law or choice of law that would cause the laws of any other jurisdiction to apply. 

(b) Transfer of Registration Rights. Any Holder that is a partnership, corporation or limited liability company may transfer or
assign its registration rights provided pursuant to this Agreement with respect to any Registrable Securities to any partner, shareholder, member or affiliate of such Holder; provided, however, that (i) such Holder shall give the Company
written notice prior to the time of such transfer or assignment stating the name and address of the transferee and identifying the Registrable Securities with respect to which the rights under this Agreement are being transferred and (ii) such
transferee or assignee agrees in writing, the form and substance of which shall be reasonably satisfactory to the Company, to be bound as a Holder by the provisions of this Agreement, following which any such transferee or assignee shall be deemed a
“Holder” pursuant to this Agreement. 
 (c) Amendment, Waiver and Termination. Any provision of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) and this Agreement may be terminated, only upon the written consent of both the Company and the Holders
of not less than 90% of the then outstanding Registrable Securities. 
 (d) Entire Agreement. This Agreement, the Notes
and the Note and Warrant Purchase Agreement constitute the entire agreement between the parties relative to the specific subject matter hereof. 
 (e) Third Party Beneficiaries. There shall be no third party beneficiaries or intended beneficiaries of this Agreement. 
 (f) Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given in accordance with the Note and Warrant Purchase Agreement. 

(g) Severability. In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never
been contained herein. 
 (h) Counterparts. This Agreement may be executed in counterparts, all of which when taken
together shall be considered one and the same agreement and shall become 

  
 10 

 
effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile or other electronic transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if
such facsimile signature page were an original thereof. 
 (i) Successors and Assigns; Additional Parties. The provisions
hereof shall inure to the benefit of, and be binding upon, the successors and assigns of the parties hereto. Notwithstanding anything to the contrary contained herein, if the Company issues Additional Notes after the date hereof pursuant to the Note
and Warrant Purchase Agreement, any Purchaser of such Additional Notes may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement, and thereafter shall be deemed an
“Investor” for all purposes hereunder. No action or consent by the Investors shall be required for such joinder to this Agreement by such additional Investor, so long as such additional Investor has agreed in writing to be bound by all of
the obligations as an “Investor” hereunder. 
 (j) Independent Nature of Holders’ Obligations and Rights.
The obligations of each Holder hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Nothing
contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other
kind of entity, or create a presumption that the Holders are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement. Each Holder shall be entitled to protect and enforce its rights, including
without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose. 

(k) Remedies. In the event of a breach by the Company or by a Holder, of any of their respective obligations under this Agreement,
each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement.

 (l) Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of
reference only and are not to be considered in construing this Agreement. 
 [Signature Pages Follow] 

  
 11 

 IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights
Agreement as of the date and year first set forth above. 
  

			
	AVANTAIR, INC.
		
	By:	 	 /s/ Steve Santo

	Name:	 	Steve Santo
	Title:	 	CEO

 [Signature page to Registration Rights Agreement] 

 
			
	INVESTORS:
		
	By:	 	 /s/ David L. Herrmann

	Name:	 	A. Lorne Weil 2006 Irrevocable Investment Trust
	By:	 	David L. Herrmann
	Title:	 	President

  
 [Signature
page to Registration Rights Agreement] 

 
			
	INVESTORS:
		
	By:	 	 /s/ Arthur Goldberg

	Name:	 	Arthur Goldberg

  
 [Signature
page to Registration Rights Agreement] 

 
			
	INVESTORS:
		
	By:	 	 /s/ Robert J. Lepofsky

	Name:	 	Robert J. Lepofsky

  
 [Signature
page to Registration Rights Agreement] 

 
			
	INVESTORS:
		
	By:	 	 /s/ A. Clinton Allen

	Name:	 	A. Clinton Allen

  
 [Signature
page to Registration Rights Agreement] 

 
			
	INVESTORS:
		
	By:	 	 /s/ Lawson Allen

	Name:	 	Lawson Allen

  
 [Signature
page to Registration Rights Agreement] 

 
			
	INVESTORS:
		
	By:	 	 /s/ Barry Gordon

	Name:	 	Barry Gordon

  
 [Signature
page to Registration Rights Agreement] 

 
			
	INVESTORS:
		
	By:	 	 /s/ Richard B. DeWolfe

	Name:	 	Richard B. DeWolfe

  
 [Signature
page to Registration Rights Agreement] 

 ANNEX A 

Plan of Distribution 
 The shares covered by this prospectus may be offered and sold from time to time by the selling stockholders. The term “selling stockholder” includes pledgees, donees, transferees or other
successors in interest selling shares received after the date of this prospectus from each selling stockholder as a pledge, gift, partnership distribution or other non-sale related transfer. The number of shares beneficially owned by a selling
stockholder will decrease as and when it effects any such transfers. The plan of distribution for the selling stockholders’ shares sold hereunder will otherwise remain unchanged, except that the transferees, pledgees, donees or other successors
will be selling stockholders hereunder. To the extent required, we may amend and supplement this prospectus from time to time to describe a specific plan of distribution. 
 The selling stockholders will act independently of us in making decisions with respect to the timing, manner and size of each sale. The selling stockholders may make these sales at prices and under terms
then prevailing or at prices related to the then current market price. The selling stockholders may also make sales in negotiated transactions. The selling stockholders may offer their shares from time to time pursuant to one or more of the
following methods: 
  

	 	•	 	 ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; 

 

	 	•	 	 one or more block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as
principal to facilitate the transaction; 

  

	 	•	 	 purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

 

	 	•	 	 an exchange distribution in accordance with the rules of the applicable exchange; 

 

	 	•	 	 publicly or privately negotiated transactions; 

  

	 	•	 	 on the OTC Bulletin Board (or through the facilities of any national securities exchange or U.S. inter-dealer quotation system of a registered national
securities association, on which the shares are then listed, admitted to unlisted trading privileges or included for quotation); 

  

	 	•	 	 through underwriters, brokers or dealers (who may act as agents or principals) or directly to one or more purchasers; 

 

	 	•	 	 a combination of any such methods of sale; and 

  

	 	•	 	 any other method permitted pursuant to applicable law. 

 In connection with distributions of the shares or otherwise, the selling stockholders may: 
  

	 	•	 	 enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares in the
course of hedging the positions they assume; 

  

	 	•	 	 sell the shares short and redeliver the shares to close out such short positions; 

 

	 	•	 	 enter into option or other transactions with broker-dealers or other financial institutions which require the delivery to them of shares offered by
this prospectus, which they may in turn resell; and 

  

	 	•	 	 pledge shares to a broker-dealer or other financial institution, which, upon a default, they may in turn resell. 

  
 A-1

 In addition to the foregoing methods, the selling stockholders may offer their shares from
time to time in transactions involving principals or brokers not otherwise contemplated above, in a combination of such methods or described above or any other lawful methods. The selling stockholders may, to the extent permitted by law, also
transfer, donate or assign their shares to lenders, family members and others and each of such persons will be deemed to be a selling stockholder for purposes of this prospectus. The selling stockholders or their successors in interest may from time
to time pledge or grant a security interest in some or all of the shares of common stock, and if the selling stockholders default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of
common stock from to time under this prospectus; provided however in the event of a pledge or then default on a secured obligation by the selling stockholder, in order for the shares to be sold under this registration statement, unless permitted by
law, we must distribute a prospectus supplement and/or amendment to this registration statement amending the list of selling stockholders to include the pledgee, secured party or other successors in interest of the selling stockholder under this
prospectus. 
 The selling stockholders may also sell their shares pursuant to Rule 144 under the Securities Act, which permits
limited resale of shares purchased in a private placement subject to the satisfaction of certain conditions. 
 Sales through
brokers may be made by any method of trading authorized by any stock exchange or market on which the shares may be listed or quoted, including block trading in negotiated transactions. Without limiting the foregoing, such brokers may act as dealers
by purchasing any or all of the shares covered by this prospectus, either as agents for others or as principals for their own accounts, and reselling such shares pursuant to this prospectus. The selling stockholders may effect such transactions
directly, or indirectly through underwriters, broker-dealers or agents acting on their behalf. In effecting sales, broker-dealers or agents engaged by the selling stockholders may arrange for other broker-dealers to participate. Broker-dealers or
agents may receive commissions, discounts or concessions from the selling stockholders, in amounts to be negotiated immediately prior to the sale (which compensation as to a particular broker-dealer might be in excess of customary commissions for
routine market transactions). 
 In offering the shares covered by this prospectus, the selling stockholders, and any
broker-dealers and any other participating broker-dealers who execute sales for the selling stockholders, may be deemed to be “underwriters” within the meaning of the Securities Act in connection with these sales. Any profits realized by
the selling stockholders and the compensation of such broker-dealers may be deemed to be underwriting discounts and commissions. 
 The Company is required to pay all of its own fees and expenses incident to the registration of the shares. 

  
 A-2

 The Company has agreed to indemnify the selling stockholders against certain losses, claims,
damages and liabilities, including liabilities under the Securities Act. 

  
 A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}]]