Document:

Exhibit

ACKNOWLEDGMENT AND AGREEMENT

Each of the undersigned has (a) guaranteed the payment and performance of all obligations of AIR T, INC., a Delaware corporation (the “Borrower”), to MINNESOTA BANK & TRUST, a Minnesota state banking corporation (the “Lender”), pursuant to the terms of an Amended and Restated Guaranty dated as of March 28, 2019 (the “Guaranty”) jointly and severally made by the undersigned in favor of the Lender, which obligations include, without limitation, all “Obligations” (as defined in the Original Agreement described below) of the Borrower to the Lender pursuant to that certain Amended and Restated Credit Agreement dated as of March 28, 2019 (such Credit Agreement, as amended to date, being the “Original Agreement”), between the Borrower and the Lender, and (b) granted a first priority security interest in its assets to the Lender as collateral for such Obligations pursuant to the terms of that certain Amended and Restated Security Agreement dated as of March 28, 2019 (the “Security Agreement”)

Each of the undersigned acknowledges that it has received a copy of the proposed Amendment No. 2 to Amended and Restated Credit Agreement dated to be effective as of December 31, 2019 (the “Amendment”) amending the Original Agreement and pursuant to which the Lender has agreed to provide Borrower with a separate “Supplemental Revolving Credit Commitment” in the amount of up to $10,000,000.  Each of the undersigned (a) confirms that each of the Guaranty and the Security Agreement remains in full force and effect, (b) agrees and acknowledges that the Amendment shall not in any way impair or limit the rights of the Lender under the Guaranty or under the Security Agreement, and (c) hereby acknowledges and agrees that (i) pursuant to the Guaranty, the Guarantors jointly and severally guaranty the payment and performance of all Obligations of the Borrower to the Lender, including, without limitation, all Loans (including, without limitation, the Supplemental Revolving Credit Loans) now or hereafter made by the Lender under the Original Agreement as amended by the Credit Agreement, and (ii) pursuant to the Security Agreement each of the undersigned continues to grant a security interest to the Lender in the “Collateral” covered thereby to secure all Obligations of the Borrower to the Lender, including, without limitation, all Loans now or hereafter made by the Lender under the Original Agreement as amended by the Credit Agreement..

Each of the undersigned agrees that each reference to the “Credit Agreement”, the “Loan Agreement”, “therein”, “thereof”, “thereby” or words of similar effect referring to the Credit Agreement in any Loan Document to which such undersigned is a party shall mean and be a reference to the Original Agreement, as amended by the Amendment.

Each of the undersigned: (a) represents and warrants to the Lender that no events have taken place and no circumstances exist at the date hereof which would give such undersigned the right to assert a defense, offset or counterclaim to any claim by the Lender for payment of the obligations guaranteed by such undersigned or for the enforcement of the Guaranty; and (b) hereby releases and forever discharges the Lender and its successors, assigns, directors, officers, agents, employees and participants from any and all actions, causes of action, suits, proceedings, debts, sums of money, covenants, contracts, controversies, claims and demands, at law or in equity, which such undersigned ever had or now has against the Lender or its successors, assigns, directors, officers, agents, 

5439038_2.docx    

employees or participants by virtue of their relationship to Borrower or any of the undersigned in connection with the Loan Documents and the transactions related thereto.

Nothing in this Acknowledgment and Agreement requires the Lender to obtain the consent of any of the undersigned to any future amendment, modification or waiver to the Original Agreement, as amended by the Amendment, or any other Loan Document to which such undersigned is a party except as expressly required by the terms of the Loan Documents to which such undersigned is a party.

This Acknowledgment and Agreement may be executed in counterparts and by separate parties in separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same document.  The delivery of a facsimile, pdf or other digital copy of an executed counterpart of this Amendment and Agreement shall be deemed to be valid execution and delivery of this Amendment and Agreement.

[SIGNATURE PAGES FOLLOW]

Dated to be effective as of December 31, 2019.

AIRCO, LLC

By:                    
Name: _________________________
Title:   _________________________

CSA AIR, INC.

By:                    
Name: _________________________
Title:   _________________________

GLOBAL GROUND SUPPORT, INC.

By:                    
Name: _________________________
Title:   _________________________

JET YARD, LLC

By: Stratus Aero Partners, LLC
Its:  Sole Member

By:                    
Name: _________________________
Title:   _________________________

[Guarantor Acknowledgment and Agreement Signature Page]

MOUNTAIN AIR CARGO, INC.

By:                    
Name: _________________________
Title:   _________________________

STRATUS AERO PARTNERS, LLC

By:                    
Name: _________________________
Title:   _________________________

AIR T GLOBAL LEASING, LLC

By:                    
Name: _________________________
Title:   _________________________

AIRCO SERVICES, LLC

By:                    
Name: _________________________
Title:   _________________________

SPACE AGE INSURANCE COMPANY

By:                    
Name: _________________________
Title:   _________________________

WORTHINGTON ACQUISITION, LLC, a North Carolina limited liability company 

By:                    
Name:                     
Its:                     

[Guarantor Acknowledgment and Agreement Signature Page]

WORTHINGTON AVIATION, LLC, a North Carolina limited liability company 

By:                    
Name:                     
Its:                     

WORTHINGTON MRO, LLC, a North Carolina limited liability company 

By:                    
Name:                     
Its:                     

18509306v1

[Guarantor Acknowledgment and Agreement Signature Page]Exhibit

BILL OF SALE (ESN 889728)
KNOW ALL MEN BY THESE PRESENTS that WELLS FARGO TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual capacity but solely as owner trustee ("Seller") and CONTRAIL AVIATION LEASING, LLC, a Wisconsin limited liability company ("Owner Participant"), in consideration of value received, the receipt of which is hereby acknowledged, do hereby grant, sell, transfer and deliver to SUN COUNTRY, INC. d/b/a SUN COUNTRY AIRLINES ("Buyer"), all of their right, title and interest in and to the following (collectively, the "Equipment"): 
(a)    one (1) CFM International, Inc. model CFM56-7B22 (described on the International Registry as a CFM model CFM56-7B) aircraft engine bearing manufacturer's serial number 889728 in fully QEC’d configuration (including but not limited to, inlet cowl, exhaust nozzle, hydraulic pump and integrated drive generator) as defined by the B737 Powerplant Buildup Manual (Boeing Document D633A106) (collectively, the "Engine"); and
(b)    all Parts and all equipment, accessories and parts belonging to, installed in or appurtenant to the Engine, together with the Engine Documentation and one (1) new DAE Industries CFM56-7 engine stand, part number 3227B, serial number M333720-2;
TO HAVE AND TO HOLD said Equipment unto Buyer forever.
Seller and Owner Participant hereby, jointly and severally, warrant to Buyer that they are the owner of full, legal and beneficial title to the Equipment, that there is hereby conveyed to Buyer, on the date hereof, good and marketable title to, and all of Seller's and Owner Participant's right, title and interest in and to, the Equipment, and free and clear of all Liens created by or through the Seller or Owner Participant but subject to and with the benefit of the Lease and any Liens permitted thereunder (or which are otherwise the responsibility of Buyer, as lessee under the Lease).  
This Bill of Sale is made and delivered pursuant to the provisions of that certain Engine Lease Agreement, dated as of November 22, 2019, between Seller and Buyer (the "Lease").  The transfer location is Minneapolis-St. Paul International Airport (MSP) and the time of delivery of this Bill of Sale is 10:38 am (Local Time) on this sixth day of January, 2020 (the “Transfer Date”).  The terms "Engine Documentation", "Liens" and "Parts" shall have the same meanings in this Bill of Sale as in the Lease.
Except as otherwise expressly provided in the Lease and this Bill of Sale, the Equipment is sold and transfer of title to Buyer shall be on an "AS IS, WHERE IS" and "WITH ALL FAULTS" basis.
This Bill of Sale and any non-contractual matters arising out of or in connection with this Bill of Sale are governed by and shall be construed in accordance with the laws of the State of New York without regard to principles of conflict of law (other than Section 5-1401 of the General Obligations Law of New York).  

IN WITNESS WHEREOF, Seller and Owner Participant have caused this Bill of Sale to be duly executed and delivered on the Transfer Date set forth above.
  
WELLS FARGO TRUST COMPANY,
NATIONAL ASSOCIATION, not in its
individual capacity but solely as
owner trustee

By:                
Name:                 
Title:                 

CONTRAIL AVIATION LEASING, LLC

By:                
Name:                 
Title:                 

18514640v1ex_168650.htm

Exhibit 10.1

 

By Electronic Delivery to: fcesario@ctiindustries.com

 

January 2, 2020

 

Mr. Frank J. Cesario

Chief Financial Officer

CTI Industries Corporation

22160 N. Pepper Road

Lake Barrington, Illinois 60010

 

	
			Re:

				
			CTI Industries Corporation (the “Company”)

			

	
			 

				
			Nasdaq Symbol: CTIB

			

 

Dear Mr. Cesario

 

I am following up on our recent telephone conversation in which I explained that since your Company has not yet held an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year end, it no longer complies with our Listing Rules (the “Rules”) for continued listing.1 Under our Rules the Company now has 45 calendar days to submit a plan to regain compliance and if we accept your plan, we can grant an exception of up to 180 calendar days from the fiscal year end, or until June 29, 2020, to regain compliance. Your plan should be as definitive as possible, addressing any issues that you believe would support your request for an exception.

 

In determining whether to accept your plan, we will consider such things as the likelihood that the annual meeting can be held within the 180 day period, the Company’s past compliance history, the reasons for the delayed meeting, other corporate events that may occur within our review period, the Company’s overall financial condition and its public disclosures.2

 

Please email your plan to me at rachel.scherr@nasdaq.com no later than February 17, 2020. After we review the plan, I will contact you if we have any questions or comments and will provide you written notice of our decision. If we do not accept your plan, you will have the opportunity to appeal that decision to a Hearings Panel.3

 

 

1See Listing Rules 5620(a) and 5810(c)(2)(G). In addition, please see IM-5620 which specifies the securities subject to the annual meeting requirement.

2 For additional information with respect to compliance plans please see attached “Nasdaq Online Resources” when preparing your plan of compliance. This attachment includes links to the Frequently Asked Questions section relating to continued listing.

3 See Listing Rule 5815(a). See FAQ #428 available on the Nasdaq Listing Center.

 

 

 

 

Mr. Frank J. Cesario

January 2, 2020

Page 2

 

Our Rules require that the Company promptly disclose receipt of this letter by either filing a Form 8-K, where required by SEC rules, or by issuing a press release. The announcement needs to be made no later than four business days from the date of this letter and must include the continued listing criteria that the Company does not meet, and a description of each specific basis and concern identified by Nasdaq in reaching the determination.4 The Company must also submit the announcement to Nasdaq’s MarketWatch Department.5 If the public announcement is made between the hours of 7:00 AM and 8:00 PM Eastern Time, the Company must submit the announcement to Nasdaq’s MarketWatch Department at least ten minutes prior its public release. If the public announcement is made outside of these hours, the Company must submit the announcement prior to 6:50 A.M. Eastern Time. Please note that if you do not make the required announcement trading in your securities will be halted.6

 

In addition, Nasdaq makes available to investors a list of all non-compliant companies, which is posted on our website at listingcenter.nasdaq.com. The Company will be included in this list beginning five business days from the date of this letter. As part of this process, an indicator reflecting the Company’s non-compliance will be broadcast over Nasdaq’s market data dissemination network and will also be made available to third party market data providers.

 

If you have any questions, please do not hesitate to contact me, at +1 301 978 8072.

 

Sincerely,

 

 

Rachel Scherr

Listing Analyst

Nasdaq Listing Qualifications

 

 

 

Enclosures

 

 

4 Listing Rule 5810(b).

5 The notice must be submitted to Nasdaq’s MarketWatch Department through the Electronic Disclosure submission system available at nasdaq.net/ED/IssuerEntry.

6 Listing IM-5810-1.

 

 

 

 

NASDAQ ONLINE RESOURCES

 

All of our listing information and forms are available electronically on the Listing Center. In addition to facilitating electronic submission of forms, you can also use the Listing Center to access Nasdaq’s Reference Library containing hundreds of frequently asked questions and Governance Clearinghouse containing the latest updates on corporate governance and listing standards.

 

To help you navigate the deficiency process, we have provided links to some our most viewed resource materials.

 

	 	
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			Board Composition and Committee Requirements

			

 

	 	
			●

				
			Governance Clearinghouse

			

 

	 	
			●

				
			Hearings Process

			

 

	 	
			●

				
			How to Transfer to Nasdaq Capital Market

			

 

	 	
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			Information about Application of Shareholder Approval Rules

			

 

	 	
			●

				
			Initial Listing Process

			

 

	 	
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			Listing Fees

			

 

	 	
			●

				
			Listing of Additional Shares Process

			

 

	 	
			●

				
			MarketWatch Electronic Disclosure Submissions

			

 

	 	
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			Nasdaq Listing Rules: Initial and Continued Listing

			

 

	 	
			●

				
			Reference Library: Frequently Asked Questions, Staff Interpretations and Listing Council Decisions

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