13 .	Related Party Matters

Since

1979

the Company has leased the Little Mountain Airport in Maiden, North Carolina from a corporation whose stock is owned in part by former officers and directors of the Company and an estate of which certain former directors are beneficiaries. The facility consists of approximately

acres with

one

3,000

-foot paved runway, approximately

20,000

square feet of hangar space and approximately

12,300

square feet of office space. The operations of Air T, MAC and ATGL are headquartered at this facility. The lease for this facility provides for monthly rent of

$14,862

and expired on

January 31,

2018.

Operations conducted at this facility were relocated to a newly constructed, owned facility on

July 31, 2017.

Contrail Aviation leases its corporate and operating facilities at Verona, Wisconsin from Cohen Kuhn Properties, LLC, a corporation whose stock is owned equally by Mr. Joseph Kuhn, Chief Executive Officer of Contrail Aviation, and Mrs. Miriam Kuhn, Chief Financial Officer of Contrail Aviation. The facility consists of approximately

21,000

square feet of warehouse and office space. The Company paid aggregate rental payments of $

118,906

to Cohen Kuhn Properties, LLC pursuant to such lease during the period from

April 1, 2017

through

December 31, 2017.

The lease for this facility expires on

June 30, 2021,

though the Company has the option to renew the lease for a period of

five

years on the same terms. The lease agreement provides that the Company shall be responsible for maintenance of the leased facilities and for utilities, taxes and insurance. The Company believes that the terms of such leases are

less favorable to the Company than would be available from an independent

third

party.

December 15, 2017,

BCCM, Inc. (“

BCCM”), a newly-formed, wholly-owned subsidiary of the Company, completed the previously announced acquisition of Blue Clay Capital Management, LLC (“Blue Clay Capital”), an investment management firm based in Minneapolis, Minnesota. In connection with the transaction, BCCM acquired the assets of, and assumed certain liabilities of, Blue Clay Capital in return for payment to Blue Clay Capital of

$1.00,

subject to adjustment for Blue Clay Capital’s net working capital as of the closing date. Gary S. Kohler, a director of the Company, was the sole owner of Blue Clay Capital. Mr. Kohler entered into an employment agreement with BCCM to serve as its Chief Investment Officer in return for an annual salary of

$50,000

plus variable compensation based on the management and incentive fees to be paid to the subsidiary by certain of these investment funds and eligibility to participate in discretionary annual bonuses. Effective

December 27, 2017,

Blue Clay Capital Master Fund Ltd.,

one

of the investment funds managed by Blue Clay Capital prior to the conversion to BCCM Advisors on

December 31, 2017,

sold approximately

52,000

shares of the Company’s stock.