Item 1.01 Entry into a Material Definitive Agreement

To the extent responsive, the information included in Items 2.01 and 2.03 is incorporated herein by reference.

Item 2.01 Completion of Acquisition or Disposition of Assets


On January 6, 2020, Trust Agreement (Aircraft MSN 30241), a trust controlled by
Contrail Aviation Leasing, LLC ("Contrail"), a wholly-owned subsidiary of
Contrail Aviation Support, LLC ("CAS"), a 79%-owned subsidiary Air T, Inc. (the
"Company"), completed a sale for cash of one engine, model CFM56-7B22 with
serial number 889728 (the "Engine"), in connection with the termination of an
engine lease agreement (the "Lease"). The total transaction value exceeded
$5,000,000.*
The sale as discussed above continues Contrail's business of purchasing aircraft
and/or aircraft engines for the purpose of leasing or disassembling them and
selling them for parts.
The foregoing summary of the terms of the transaction document does not purport
to be complete and is qualified in its entirety by reference to the document
which is filed as Exhibit 10.7 hereto and is incorporated by reference herein.
*Portions of the transaction exhibit have been omitted for confidential
treatment.
Item 2.03    Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant

On December 31, 2019, the Company and Minnesota Bank & Trust, a Minnesota state banking corporation ("MBT"), entered into that certain Amendment No. 2 to Amended and Restated Credit Agreement (the "Second Amendment"). The Second Amendment provides for a separate revolving line of credit for $10,000,000. In connection with the Second Amendment, the Company entered into that certain Supplemental Revolving Credit Note in the principal amount of $10,000,000 to MBT (the "Note"). The Note has a maturity date of June 30, 2020, with a fluctuating annual rate of interest equal to the greater of (a) the sum of (i) the LIBOR Rate, and as the same may adjust monthly, plus (ii) 1.25%; or (b) 3.00%; provided, that, upon the occurrence and during the continuance of any Event of Default as defined therein, the rate of interest hereunder shall be increased by 3.00% above the rate of interest that would otherwise be in effect thereunder. The loan is secured by a pledge of a continuing security interest in the demand deposit cash collateral accounts of Air T OZ 1, LLC, Air T OZ 2, LLC, and Air T OZ 3, LLC, each a Minnesota limited liability company and a subsidiary of the Company, with an aggregate account cash balance of $10,000,000 under the sole control by MBT. Twelve of the Company's subsidiaries continue to, jointly and severally, guaranty the full and prompt payment and performance of all debts and obligations of the Company to MBT.

The foregoing summary of the terms of the financing documents does not purport to be complete and is qualified in its entirety by reference to the documents which are filed as Exhibits 10.1, 10.2, 10.3, 10.4, 10.5, and 10.6 respectively hereto and are incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits



10.1     Form of Amendment No. 2 to Amended and Restated Credit Agreement, dated
       December 31, 2019 by and between Air T, Inc. and Minnesota Bank & Trust.



10.2     Form of Air T, Inc. Supplemental Revolving Credit Note, dated December
       31, 2019 in the principal amount of $10,000,000 to Minnesota Bank &
       Trust.


10.3     Form of Collateral Account Agreement, dated December 31, 2019, by and
       between Air T OZ 1, LLC and Minnesota Bank & Trust.






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10.4     Form of Collateral Account Agreement, dated December 31, 2019, by and
       between Air T OZ 2, LLC and Minnesota Bank & Trust.


10.5     Form of Collateral Account Agreement, dated December 31, 2019, by and
       between Air T OZ 3, LLC and Minnesota Bank & Trust.


10.6     Form of Acknowledgement and Agreement of AirCo, LLC, CSA Air, LLC,
       Global Ground Support, Inc., Jet Yard, LLC, Mountain Air Cargo, Inc.,
       Stratus Aero Partners, LLC, Air T Global Leasing, LLC, AirCo Services,
       LLC, Space Age Insurance Company, Worthington Acquisition, LLC,
       Worthington Aviation, LLC and Worthington MRO, LLC, dated December 31,
       2019 in favor of Minnesota Bank & Trust.


10.7     Form of Bill of Sale (ESN 889728), dated January 6, 2020 granted to Sun
       Country, Inc. d/b/a Sun Country Airlines.

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