Document:

Exhibit 10.31

 

AMENDMENT NO. 2

TO

CREDIT AGREEMENT

 

This Amendment No. 2, dated as of August 2, 2013 (this “Amendment”) is entered into among SPIRIT AEROSYSTEMS, INC., a Delaware corporation (the “Borrower”); SPIRIT AEROSYSTEMS HOLDINGS, INC., a Delaware corporation (the “Parent Guarantor”); each of the other Guarantors party hereto; BANK OF AMERICA, N.A., as Administrative Agent, and the Lenders party hereto. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the Parent Guarantor and the other Guarantors identified therein, the Lenders and Bank of America, N.A., as Administrative Agent are parties to that certain Credit Agreement dated as of April 18, 2012 (as amended, modified, extended, restated or otherwise supplemented from time to time, including without limitation pursuant to that certain Amendment No. 1 dated as of October 26, 2012, the “Credit Agreement”);

 

WHEREAS, the Borrower has requested certain amendments to the Credit Agreement, and the Lenders (by action of the Requisite Lenders) have agreed to such amendments subject to the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows:

 

Section 1. Amendments

 

1.1                               The definitions set forth on Schedule 1 attached hereto are hereby added to Section 1.01 of the Credit Agreement in appropriate alphabetical order.

 

1.2                               In the definition of “Applicable Rate” in Section 1.01 of the Credit Agreement, clause (b) is amended by adding a proviso at the end thereof (immediately following the pricing grid) to read as follows:

 

; provided that, notwithstanding anything to the contrary in the foregoing, at all times during the Suspension Period, the “Applicable Rate” with respect to any Term B Loan shall be the percentage per annum set forth in Pricing Tier 1;

 

1.3                               In the definition of “Applicable Rate” in Section 1.01 of the Credit Agreement, clause (c) is amended by adding a proviso at the end thereof (immediately following the pricing grid) to read as follows:

 

; provided that, notwithstanding anything to the contrary in the foregoing, at all times during the Suspension Period, the “Applicable Rate” with respect to Revolving Loans, Swing Line Loans, Letters of Credit and the Commitment Fee shall be the percentage per annum set forth in Pricing Tier 1.

 

 

1.4                               The definition of “Eurodollar Base Rate” set forth in Section 1.01 of the Credit Agreement is amended in its entirety to read as follows:

 

“Eurodollar Base Rate” means:

 

(a)                                 for any Interest Period with respect to a Eurodollar Rate Loan, (i) the rate per annum equal to the London Interbank Offered Rate or any successor thereto approved by the Administrative Agent (“LIBOR”) as published by the applicable Reuters screen page (or such other commercially available source providing quotations of LIBOR as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period or (ii) if such rate is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period; and

 

(b)                                 for any interest calculation with respect to a Base Rate Loan on any date, (i) the rate per annum equal to LIBOR published by the applicable Reuters screen page (or such other commercially available source providing quotations of LIBOR as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, determined two (2) London Banking Days prior to such date for Dollar deposits being delivered in the London interbank market for a term of one month commencing that day or (ii) if such rate is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made or maintained and with a term equal to one month would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at the date and time of determination;

 

provided, however, that notwithstanding the foregoing, Eurodollar Base Rate with respect to any Term B Loan that bears interest at a rate based on clause (a) or (b) of this definition shall in any event not be less than three-quarters of one percent (0.75%).

 

1.5                               The definition of “Guarantors” set forth in Section 1.01 of the Credit Agreement is amended by (i) deleting the word “and” in the first sentence thereof at the end of clause (a) and replacing it with a “,”, (ii) deleting the “.” in the first sentence thereof at the end of clause (b) and replacing it with “and” and (iii) adding a new clause (c) to the first sentence thereof to read as follows:

 

(c)                                  with respect to (i) Obligations under any Swap Contract between any Loan Party and any Swap Bank that is permitted to be incurred pursuant to clause (vii) of Section 8.01(a), (ii) Obligations under any Treasury Management Agreement between any Loan Party and any Treasury Management Bank and (iii) any Swap Obligation of a Specified Loan Party (determined before giving effect to Sections 4.01 and 4.08) under the Guaranty, the Borrower.

 

1.6                               The definition of “Obligations” set forth in Section 1.01 of the Credit Agreement is amended by adding a new sentence at the end thereof to read as follows:

 

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Notwithstanding anything to the contrary in the foregoing, the “Obligations” of a Guarantor shall exclude any Excluded Swap Obligations with respect to such Guarantor.

 

1.7                               In Section 2.01(c)(i) of the Credit Agreement, the text “The Borrower may from time to time on or after the Closing Date” is amended to read as “The Borrower may from time to time after the Suspension Period”.

 

1.8                               In Section 2.01(c)(ii) of the Credit Agreement, the text “The Borrower may from time to time on or after the Closing Date” is amended to read as “The Borrower may from time to time after the Suspension Period”.

 

1.9                               In Section 2.03(h), the first sentence thereof is amended by inserting “plus, during the Suspension Period, one-half of one percent (0.50%)” immediately following the text “the Applicable Rate” set forth therein.

 

1.10                        Section 2.05(b)(ii) of the Credit Agreement is amended by inserting “(except with respect to any Net Proceeds from any Asset Sale of the Tulsa Assets, in which case fifty percent (50%) of such Net Proceeds)” immediately after the text “one hundred percent (100%) of such Net Proceeds” set forth therein.

 

1.11                        In Section 2.08(a) of the Credit Agreement, each of clauses (i), (iii) and (v) are amended by inserting the text “plus, during the Suspension Period, one-half of one percent (0.50%)” immediately following the text “the Applicable Rate for Revolving Loans” in clauses (i) and (iii) and following the text “the Applicable Rate” in clause (v).

 

1.12                        Article IV of the Credit Agreement is amended to add a new Section 4.08 to read as follows:

 

4.08                        Keepwell.

 

Each Loan Party that is a Qualified ECP Guarantor at the time the Guaranty in this Article IV by any Loan Party that is not then an “eligible contract participant” under the Commodity Exchange Act (a “Specified Loan Party”) or the grant of a security interest under the Loan Documents by any such Specified Loan Party, in either case, becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Loan Party with respect to such Swap Obligation as may be needed by such Specified Loan Party from time to time to honor all of its obligations under this Guaranty and the other Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under this Article IV voidable under applicable Debtor Relief Laws, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this Section 4.08 shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full (other than contingent indemnification obligations under the Loan Documents that are not then due or claimed). Each Loan Party intends this Section 4.08 to constitute, and this Section 4.08 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each Specified Loan Party for all purposes of the Commodity Exchange Act.

 

1.13                        Section 5.02 of the Credit Agreement is amended by adding a new clause (d) to read as follows:

 

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(d)                                 During the Suspension Period, before and after immediately giving effect to the Credit Extension requested in the Request for Credit Extension, the Total Secured Outstandings shall not exceed the Aggregate Borrowing Base Amount set forth in the Borrowing Base Certificate most recently delivered pursuant to Section 7.01(m) or, with respect to the period prior to the first such delivery after the Amendment No. 2 Effective Date, on the Amendment No. 2 Effective Date.

 

1.14                        Section 7.01 of the Credit Agreement is amended by (i) deleting the word “and” at the end of 7.01(k), (ii) deleting the period at the end of 7.01(l) and substituting “; and” therefor and (iii) adding a new clause (m) to read as follows:

 

(m)                             during the Suspension Period, not later than ten (10) Business Days after the delivery of any financial statements pursuant to Section 7.01(a) or (b), a Borrowing Base Certificate duly executed by a Responsible Officer of the Borrower setting forth a calculation of the Aggregate Borrowing Base Amount as of the end of the most recent Fiscal Quarter covered by such financial statements.

 

1.15                        Section 8.01(a) of the Credit Agreement is amended by (i) deleting the word “and” at the end of clause (xix), (ii) deleting the period at the end of clause (xx) and substituting “; and” therefor and (iii) adding a new clause (xxi) and a new paragraph at the end thereof, in each case to read as follows:

 

(xxi)                       during the Suspension Period, Permitted Additional Indebtedness in an aggregate principal amount not to exceed $300,000,000 at any time outstanding.

 

Notwithstanding anything to the contrary in the foregoing, during the Suspension Period, Indebtedness under the immediately foregoing clauses (xii), (xvi), (xvii), (xviii) and (xix) shall be permitted only to the extent that such Indebtedness (x) is in existence as of the Amendment No. 2 Effective Date and is described on Schedule 8.01 or (y) is a Permitted Refinancing of such Indebtedness.

 

1.16                        Section 8.05 of the Credit Agreement is amended by (i) deleting the word “and” at the end of clause (xiii), (ii) adding the word “and” at the end of clause (xiv) and (iii) adding a new clause (xv) to read as follows:

 

(xv)                          so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, the sale of the Tulsa Assets;

 

1.17                        Section 8.07(vii) is amended by inserting the text “except during the Suspension Period,” immediately prior to the text “so long as no Default or Event of Default then exists” set for therein.

 

1.18                        Section 8.12 of the Credit Agreement is amended and restated in its entirety to read as follows:

 

8.12                        Financial Covenants.

 

(a)                                 Commencing with the Fiscal Quarter ending December 31, 2014, the Borrower will not permit the Senior Secured Leverage Ratio as of the last day of any Fiscal Quarter to exceed 2.75:1.0.

 

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(b)                                 Commencing with the Fiscal Quarter ending December 31, 2014, the Borrower will not permit the Interest Coverage Ratio as of the last day of any Fiscal Quarter to be less than 4.00:1.0.

 

(c)                                  Commencing with the Fiscal Quarter ending December 31, 2014, the Borrower will not permit the Total Leverage Ratio as of the last day of any Fiscal Quarter to exceed 4.00:1.0.

 

(d)                                 Commencing with the Fiscal Quarter ending December 31, 2014, if, as of the date of any Airbus Discontinuance or any 787 Discontinuance, the outstanding aggregate amount of advance payments or progress payments made by Boeing and/or Airbus in connection with the 787 Program and/or the A350 XWB Program that are then considered “Indebtedness” exceeds $250,000,000, the Borrower will not permit the Total Leverage Ratio to exceed the Total Leverage Ratio required at such time by Section 8.12(c) for the period in which such Airbus Discontinuance or 787 Discontinuance shall be deemed to have occurred as provided below. For purposes of calculating the Total Leverage Ratio pursuant to this clause (d), the occurrence of an Airbus Discontinuance or the occurrence of a 787 Discontinuance shall be deemed to have occurred as of the last day of the most recent four Fiscal Quarter period preceding the date of such Airbus Discontinuance and/or such 787 Discontinuance for which the Borrower was required to deliver financial statements pursuant to Section 7.01(a) or (b).

 

(e)                                  During the Suspension Period, at any time, the Borrower will not permit the Total Secured Outstandings to exceed the Aggregate Borrowing Base Amount set forth in the most recent Borrowing Base Certificate delivered pursuant to Section 7.01(m).

 

(f)                                   As of each Fiscal Quarter ending during the Suspension Period, commencing with the Fiscal Quarter ending June 27, 2013, the Borrower will not permit Minimum Liquidity to be less than $500,000,000.

 

1.19                        Section 9.05 of the Credit Agreement is amended by adding a new sentence at the end thereof to read as follows:

 

Excluded Swap Obligations with respect to any Guarantor shall not be paid with amounts received from such Guarantor or such Guarantor’s assets, but appropriate adjustments shall be made with respect to payments from other Loan Parties to preserve the allocation to Obligations otherwise set forth above in this Section.

 

1.20                        The Credit Agreement is amended to include a new Schedule 8.01 (Existing Indebtedness as of the Amendment No. 2 Effective Date under clauses (vi), (xvi), (xvii), (xviii) and (xiv) of Section 8.01(a) of the Credit Agreement) in the form attached hereto as Schedule 8.01, and the table of Schedules and Exhibits following the table of contents in the Credit Agreement shall be amended updated accordingly.

 

1.21                        The Credit Agreement is amended to include a new Exhibit 1.01 (Form of Borrowing Base Certificate) in the form attached hereto as Exhibit 1.01, and the table of Schedules and Exhibits following the table of contents in the Credit Agreement shall be amended accordingly.

 

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Section 2. Conditions Precedent to the Effectiveness of this Amendment.

 

This Amendment shall become effective as of the date first written above when, and only when, each of the following conditions precedent shall have been satisfied or waived (the “Amendment No. 2 Effective Date”) by the Administrative Agent:

 

2.1                               Executed Counterparts. The Administrative Agent shall have received this Amendment, duly executed by the Borrower, the Guarantors, the Administrative Agent, the Requisite Lenders and the Requisite Revolving Lenders;

 

2.2                               Borrowing Base Certificate. The Administrative Agent shall have received a Borrowing Base Certificate as of the Amendment No. 2 Effective Date;

 

2.3                               No Default or Event of Default. Immediately before and after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing; and

 

2.4                               Fees and Expenses. The Borrower shall have delivered, by wire transfer of immediately available funds, to the Administrative Agent, for the account of each Lender that consents to this Amendment, an amendment fee in an amount equal to twenty-five basis points (0.25%) of the sum of the Revolving Commitment of such Lender plus the aggregate outstanding principal amount of the Term B Loan of such Lender, which fee shall be earned and payable on the Amendment No. 2 Effective Date.

 

Section 3. Representations and Warranties

 

On and as of the Amendment No. 2 Effective Date, after giving effect to this Amendment, the Loan Parties hereby represent and warrant to the Administrative Agent and each Lender as follows:

 

3.1                               this Amendment has been duly authorized, executed and delivered by each Loan Party and, assuming the due execution and delivery of this Amendment by each of the other parties hereto, constitutes the legal, valid and binding obligation of such Loan Party enforceable against such Loan Party in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally;

 

3.2                               each of the representations and warranties contained in Article VI of the Credit Agreement and in each other Loan Document is true and correct in all material respects (except that any representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) with the same effect as if then made (unless expressly stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that any representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) as of such earlier date);

 

3.3                               no Default or Event of Default has occurred and is continuing; and

 

3.4                               after giving effect to this Amendment, neither the modification of the Credit Agreement affected pursuant to this Amendment nor the execution, delivery, performance or effectiveness of this Amendment (a) impairs the validity, effectiveness or priority of the Liens granted pursuant to any Loan Document, and such Liens continue unimpaired with the same priority to secure repayment of all Obligations, whether heretofore or hereafter incurred; or (b) requires that any new filings be made or other action taken to perfect or to maintain the perfection of such Liens.

 

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Section 4. Fees and Expenses

 

The Borrower agrees to pay promptly (and in any event on the Amendment No. 2 Effective Date) after presentation of an invoice therefor all reasonable and documented out-of-pocket fees and expenses of the Joint Lead Arrangers (including the reasonable and documented fees and out-of-pocket expenses of Moore & Van Allen, PLLC) in connection with the preparation, negotiation, execution and delivery of this Amendment.

 

Section 5. Reference to the Effect on the Loan Documents

 

5.1                               As of the Amendment No. 2 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder”, “thereof’ and words of like import), shall mean and be a reference to the Credit Agreement, as amended hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument. Each of the table of contents and lists of Exhibits and Schedules of the Credit Agreement shall be amended to reflect the changes made in this Amendment as of the Amendment No. 2 Effective Date;

 

5.2                               Except as expressly amended hereby or specifically waived above, all of the terms and provisions of the Credit Agreement and all other Loan Documents are and shall remain in full force and effect and are hereby ratified and confirmed;

 

5.3                               The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders, the Borrower, Lead Arranger or the Administrative Agent under any of the Loan Documents, nor constitute a waiver or amendment of any other provision of any of the Loan Documents or for any purpose except as expressly set forth herein; and

 

5.4                               This Amendment is a Loan Document.

 

Section 6. Execution in Counterparts

 

This Amendment may be executed by the parties hereto in several counterparts (including by facsimile or other electronic imaging means (e.g., “.pdf” or “.tif”), each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.

 

Section 7. Governing Law

 

THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

Section 8. Headings

 

The various headings of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or any provisions hereof.

 

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Section 9. Notices

 

All communications and notices hereunder shall be given as provided in the Credit Agreement.

 

Section 10. Severability

 

The fact that any term or provision of this Amendment is held invalid, illegal or unenforceable as to any person in any situation in any jurisdiction shall not affect the validity, enforceability or legality of the remaining terms or provisions hereof or the validity, enforceability or legality of such offending term or provision in any other situation or jurisdiction or as applied to any person.

 

Section 11. Successors

 

The terms of this Amendment shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns.

 

Section 12. Cross-References

 

References in this Amendment to any Section are, unless otherwise specified or otherwise required by the context, to such Section of this Amendment.

 

Section 13. Affirmations

 

13.1                        Each Loan Party signatory hereto hereby (a) ratifies and affirms its obligations under the Loan Documents (including guarantees and security agreements) executed by the undersigned and (b) acknowledges, renews and extends its continued liability under all such Loan Documents and agrees such Loan Documents remain in full force and effect, in each case, as modified by this Amendment.

 

13.2                        Each Loan Party signatory hereto hereby reaffirms, as of the Amendment No. 2 Effective Date, (a) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, such covenants and agreements as in effect immediately after giving effect to this Amendment and the transactions contemplated thereby, and (b) its guarantee of payment of the Obligations pursuant to the Guaranty and the Lien on the Collateral securing payment of the Obligations pursuant to the Security Documents.

 

13.3                        Each Loan Party signatory hereto hereby certifies that, as of the date hereof (both before and after giving effect to the occurrence of the Amendment No. 2 Effective Date), the representations and warranties made by it contained in the Loan Documents to which it is a party are true and correct in all material respects (except that any representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) with the same effect as if then made (unless expressly stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that any representation or warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) as of such earlier date).

 

13.4                        Each Loan Party signatory hereto hereby acknowledges and agrees that the acceptance by the Administrative Agent and each Lender shall not be construed in any manner to establish any course of dealing on the Administrative Agent’s or Lender’s part, including the providing of any notice or the requesting of any acknowledgment not otherwise expressly provided for in any Loan Document with respect to any future amendment, waiver, supplement or other modification to any Loan Document or any arrangement contemplated by any Loan Document.

 

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13.5                        Each Loan Party signatory hereto hereby represents and warrants that, immediately after giving effect to this Amendment, each Loan Document, in each case as modified by this Amendment (where applicable), to which it is a party, assuming the due execution and delivery of such Loan Document as modified (where applicable) by each of the other parties thereto, continues to be a legal, valid and binding obligation of the undersigned, enforceable against such party in accordance with its terms (except, in any case, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and by principles of equity).

 

[SIGNATURE PAGES FOLLOW]

 

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IN WINTER WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers and general partners thereunto duly authorized, as of the date first written above.

 

	
 
    	
SPIRIT   AEROSYSTEMS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark J. Suchinski
    
	
 
    	
Name:
    	
Mark   J. Suchinski
    
	
 
    	
Title:
    	
Vice   President, Treasurer & Financial Planning
    
	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark J. Suchinski
    
	
 
    	
Name:
    	
Mark   J. Suchinski
    
	
 
    	
Title:
    	
Vice   President, Treasurer & Financial Planning
    
	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS INTERNATIONAL HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS FINANCE, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS INVESTCO, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS CAROLINA, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
SPIRIT   AEROSYSTEMS OPERATIONAL INTERNATIONAL, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    
							

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 2

 

 

	
 
    	
SPIRIT   DEFENSE, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Boyle
    
	
 
    	
Name:
    	
Joseph   T. Boyle
    
	
 
    	
Title:
    	
Assistant   Secretary
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 2

 

 

	
 
    	
Bank   of America, N.A.,
    
	
 
    	
as   Administrative Agent and Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin L. Ahart
    
	
 
    	
Name:
    	
Kevin   L. Ahart
    
	
 
    	
Title:
    	
Vice   President
    

 

SPIRIT AEROSYSTEMS, INC.

AMENDMENT NO. 2

 

 

LENDERS’ SIGNATURE PAGES ON FILE WITH ADMINISTRATIVE AGENT

 

 

Schedule 1

 

Defined Terms

 

“Advance Percentage” means as follows:

 

(a)                                 with respect to Eligible Receivables, seventy percent (70%);

 

(b)                                 with respect to Eligible Raw Materials Inventory and Eligible Finished Goods Inventory, sixty percent (60%);

 

(c)                                  with respect to Eligible Work-in-Process Inventory, thirty-five percent (35%);

 

(d)                                 with respect to Eligible P&E, fifty percent (50%);

 

(e)                                  with respect to Eligible Real Estate, fifty percent (50%); and

 

(f)                                   with respect to Eligible Intercompany Loans, seventy-five percent (75%).

 

“Aggregate Borrowing Base Amount” means, as of any date of determination, the sum of the Eligible Collateral Borrowing Base Amounts for each type of Eligible Collateral.

 

“Amendment No. 2 to Credit Agreement” means that certain Amendment No. 2 to Credit Agreement dated as of August 2, 2013 by and among the Loan Parties, the Lenders party thereto and Bank of America, as Administrative Agent.

 

“Amendment No. 2 Effective Date” means August 2, 2013.

 

“Borrowing Base Certificate” means a certificate substantially in the form of Exhibit 1.01.

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).

 

“Customary Permitted Liens” means, with respect to all Eligible Collateral, the Permitted Liens described in clauses (i), (v), and (xv) of Section 8.02 and (b) solely with respect to Eligible P&E and Eligible Real Estate, Permitted Liens described in clauses (vii) and (x), of Section 8.02.

 

“Eligible Collateral” means Eligible Receivables, Eligible Raw Materials Inventory, Eligible Finished Goods Inventory, Eligible Work-in-Process Inventory, Eligible P&E, Eligible Real Estate and Eligible Intercompany Loans of the Loan Parties; provided that upon the occurrence of any Airbus Discontinuance or any 787 Discontinuance, Eligible Collateral shall exclude any Eligible Receivables, Eligible Raw Materials Inventory, Eligible Finished Goods Inventory, Eligible Work-in-Process Inventory and/or Eligible P&E associated with the 787 Program or the A350 XWB Program, as applicable.

 

“Eligible Collateral Borrowing Base Amount” means, as of any date of determination, with respect to any Eligible Collateral, the Eligible Value for such Eligible Collateral multiplied by the Advance Percentage for such Eligible Collateral.

 

“Eligible Finished Goods Inventory” means, as of any date of determination, the items classified by the Loan Parties as “finished goods” in accordance with GAAP that constitute Collateral and in which the Collateral Agent has a valid, perfected and enforceable security interest, subject only to Customary 

 

 

Permitted Liens.

 

“Eligible Intercompany Loans” means loans made by any of the Loan Parties to any Foreign Subsidiary of the Borrower that constitute Collateral; provided that (a) loans shall not be included in Eligible Intercompany Loans unless the promissory note or other instrument evidencing such Indebtedness has been delivered to the Collateral Agent, together with a duly executed allonge or other instrument of transfer with respect thereto and (b) a loan shall not be included in Eligible Intercompany Loans if the aggregate outstanding principal amount thereof, when taken together with all other outstanding Indebtedness of the applicable obligor, exceeds the going concern value of the obligor (determined as of the date of the Borrowing Base Certificate most recently delivered pursuant to Section 7.01(m)) with respect to such loan.

 

“Eligible P&E” means, as of any date of determination, the items classified by the Loan Parties as “property and equipment” (other than “real property”) in accordance with GAAP that constitute Collateral and in which the Collateral Agent has a valid, perfected and enforceable security interest, subject only to Customary Permitted Liens; provided that any such property and equipment constituting a fixture (as defined in the Uniform Commercial Code), shall constitute “Eligible P&E” only if a fixture filing has been filed in the appropriate local jurisdiction in respect thereof. For purposes of clarity, any tooling not owned by the Loan Parties shall not be included in Eligible P&E.

 

“Eligible Raw Materials Inventory” means, as of any date of determination, the items classified by the Loan Parties as “raw materials” in accordance with GAAP that constitute Collateral and in which the Collateral Agent has a valid, perfected and enforceable security interest, subject only to Customary Permitted Liens.

 

“Eligible Real Estate” means, as of any date of determination, Mortgaged Properties in respect of which the Collateral Agent has valid, perfected and enforceable Mortgages, subject only to Customary Permitted Liens; provided that no Mortgaged Property shall constitute “Eligible Real Estate” until the Loan Parties have delivered to the Collateral Agent appraisals that comply with the requirements of the Federal Institutions Reform, Recovery and Enforcement Act with respect to a sampling of parcels of real estate included in the Mortgaged Properties (with the sample to be agreed between the Borrower and the Administrative Agent).

 

“Eligible Receivables” means, as of any date of determination, the items classified by the Loan Parties as “accounts receivable” in accordance with GAAP, in each case (a) that are owing by a Person that is not a consolidated Affiliate of any Loan Party, (b) that have not been outstanding for more than one hundred twenty (120) days, (c) that constitute Collateral and in which the Collateral Agent has a valid, perfected and enforceable security interest, subject only to Customary Permitted Liens, (d) that are not unbilled receivables and (e) net of retainage. As used herein “unbilled receivables” means unbilled receivables on long-term aerospace contracts, comprised principally of revenue recognized on contracts for which amounts were earned but not contractually billable as of the date of determination, or amounts earned in which recovery will occur over the term of the contract, which could exceed one year, and “retainage” means any portion of the agreed upon contract payment withheld until the contracted for work is complete or substantially complete, including without limitation amounts due on Gulfstream G650 deliveries from 2010 through such date of determination.

 

“Eligible Value” means, as of any date of determination:

 

(a)                                 with respect to Eligible Receivables, the Net Book Value of Eligible Receivables as derived from the general ledger or other financial records of the Loan Parties that is the basis for the most recent Borrowing Base Certificate delivered to the Administrative Agent in

 

2

 

accordance with the Credit Agreement;

 

(b)                                 with respect to each of Eligible Raw Material Inventory, Eligible Finished Goods Inventory and Eligible Work-in-Process Inventory, the Net Book Value of such Eligible Raw Material Inventory, Eligible Finished Goods Inventory and Eligible Work-in-Process Inventory, as derived from the general ledger or other financial records of the Loan Parties that is the basis for the most recent Borrowing Base Certificate delivered to the Administrative Agent in accordance with the Credit Agreement;

 

(c)                                  with respect to Eligible P&E, the Net Book Value of the Eligible P&E as derived from the general ledger or other financial records of the Loan Parties that is the basis for the most recent Borrowing Base Certificate delivered to the Administrative Agent in accordance with the Credit Agreement; and

 

(d)                                 with respect to Eligible Real Estate, the Net Book Value of the Eligible Real Estate as derived from the general ledger or other financial records of the Loan Parties that is the basis for the most recent Borrowing Base Certificate delivered to the Administrative Agent in accordance with the Credit Agreement.

 

“Eligible Work-in-Process Inventory” means, as of any date of determination, items classified by the Loan Parties as “work-in-process” in accordance with GAAP, in each case (a) that constitute Collateral and in which the Collateral Agent has a valid, perfected and enforceable security interest, subject only to Customary Permitted Liens, (b) net of deferred production costs to the extent they are included in work-in-process, (c) net of capitalized pre-production costs to the extent they are included in work-in-process and (d) net of forward loss provision to the extent it is included in work-in-process. As used herein, (x) “deferred production costs” shall mean inventory costs under long-term contracts that exceed the estimated average cost of all units expected to be produced to the extent the actual or expected excess-over-average is reasonably expected to be fully offset by lower-than-average costs in future periods of a contract, and (y) “capitalized pre-production costs” shall mean certain contract costs, including applicable overhead, incurred before a product is manufactured on a recurring basis or as a result of significant customer directed work changes.

 

“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty of such Guarantor of, or the grant under a Loan Document by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to Section 4.08 and any and all guarantees of such Guarantor’s Swap Obligations by other Loan Parties) at the time the Guaranty of such Guarantor, or grant by such Guarantor of a security interest, becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a Master Agreement governing more than one Swap Contract, such exclusion shall apply to only the portion of such Swap Obligation that is attributable to Swap Contracts for which such Guaranty or security interest is or becomes illegal.

 

“Master Agreement” has the meaning set forth in the definition of “Swap Contract.”

 

“Minimum Liquidity” means, as of any date of determination, on an aggregate basis for all Loan Parties, the sum of (a) unrestricted and unencumbered (other than by Liens (x) in favor of the Administrative Agent or (y) permitted under clause (xv) of Section 8.02) cash maintained in accounts located in (i) the United States and (ii) to the extent that such cash is available after giving effect to any 

 

3

 

reduction for repatriation or other taxes or fees associated with the repatriation of such cash into the United States, Scotland, and (b) unused Revolving Commitments actually available for Borrowing.

 

“Net Book Value” means, with respect to any asset of any Person (a) except in the case of accounts receivable, the gross book value of such asset on the balance sheet of such Person, minus depreciation or amortization in respect of such asset on such balance sheet, and (b) in the case of accounts receivable, the gross book value thereof minus any specific reserves attributable thereto, each determined in accordance with GAAP.

 

“Qualified ECP Guarantor” means at any time each Loan Party with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another Person to qualify as an “eligible contract participant” at such time under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

“Specified Loan Party” has the meaning specified in Section 4.08.

 

“Suspension Period” means the period from and including the Amendment No. 2 Effective Date through and including the date of receipt of a Compliance Certificate for the period of four fiscal quarters ending December 31, 2014 in accordance with Section 7.01(b).

 

“Swap Obligations” means with respect to any Guarantor any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.

 

“Total Secured Outstandings” means, as of any date of determination, the sum of (a) the aggregate outstanding principal of all Term Loans plus (b) Total Revolving Outstandings plus (c) all other Indebtedness secured by a Lien.

 

“Tulsa Assets” means property or assets used for, or in support of, operations in or near Tulsa or McAlester, Oklahoma.

 

4

 

Schedule 8.01

 

Existing Indebtedness as of the Amendment No. 2 Effective Date Under Clauses (xii), (xvi), (xvii), (xviii) and (xix) of Section 8.01(a) of the Credit Agreement

 

1.              Indebtedness evidenced by that certain Loan Agreement, dated as of April 1, 2006, between the Spirit AeroSystems, Inc. and Spirit Aerosystems (Europe) Ltd., as borrower, as amended, restated, supplemented or otherwise modified from time to time.

 

2.              Indebtedness evidenced by that certain Loan Agreement, dated as of June 18, 2009, among Spirit AeroSystems, Inc. and Spirit AeroSystems France Sarl, as borrower, as amended, restated, supplemented or otherwise modified from time to time.

 

3.              [OTHERS]

 

 

Exhibit 1.01

 

[Form of] Borrowing Base Certificate

 

Financial Statement Date:                     ,            

 

To:                             Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Credit Agreement, dated as of April 18, 2012 (as amended, restated, extended, supplemented, increased or otherwise modified in writing from time to time, including without limitation pursuant to that certain Amendment No. 1 dated as of October 26, 2012 and that certain Amendment No. 2 dated as of August 2, 2013, the “Credit  Agreement”), among Spirit AeroSystems, Inc., a Delaware corporation (the “Borrower”), the Parent Guarantor and the other Guarantors identified therein, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent and Collateral Agent. Capitalized terms used herein and not defined herein shall have the meanings assigned to such terms in the Credit Agreement.

 

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the                                                   of the Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of the Borrower pursuant to Section 7.01(m) of the Credit Agreement, and that attached hereto as Schedule 1 is the calculation of the Aggregate Borrowing Base Amount for the most recent Fiscal Quarter covered by the financial statements referenced above in conformance with the terms of the Credit Agreement.

 

[Signature page follows]

 

 

IN  WITNESS WHEREOF, the undersigned has executed this Certificate as of                    ,                     . 

 

	
 
    	
SPIRIT   AEROSYSTEMS, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    	
[Must   be a Responsible Officer]
    
				

 

 

Schedule 1

 

	
ELIGIBLE COLLATERAL
    	
 
    	
AMOUNT
    	
 
    
	
1.
    	
Eligible Receivables(1)
    	
 
    	
 
    	
 
    
	
a
    	
Net   Book Value of accounts receivable in accordance with GAAP that are owing by a   Person that is not a consolidated Affiliate of the Company
    	
 
    	
$
    	
 
    	
 
    
	
b.
    	
Net   Book Value of accounts receivable in accordance with GAAP that have been outstanding   for more than one hundred twenty (120) days
    	
 
    	
$
    	
 
    	
 
    
	
c.
    	
Net   Book Value of accounts receivable in accordance with GAAP that do not constitute   Collateral or in which the Collateral Agent does not have a valid, perfected   and enforceable security interest, subject only to Customary Permitted Liens
    	
 
    	
$
    	
 
    	
 
    
	
d.
    	
Net   Book Value of accounts receivable in accordance with GAAP that are unbilled   receivables
    	
 
    	
$
    	
 
    	
 
    
	
e.
    	
Retainage
    	
 
    	
$
    	
 
    	
 
    
	
f.
    	
Eligible   Value of Eligible Receivables (1.a. minus 1.b. minus 1.c. minus   1.d. minus 1.e.)
    	
 
    	
$
    	
 
    	
 
    
	
g.
    	
Eligible   Receivables to be included in Aggregate Borrowing Base Amount (70% times   1.f.)
    	
 
    	
$
    	
 
    	
 
    
	
2.
    	
Eligible Raw Materials Inventory(2)
    	
 
    	
 
    	
 
    
	
a.
    	
Net   Book Value of raw materials in accordance with GAAP that constitute Collateral   and in which the Collateral Agent has a valid, perfected and enforceable   security interest, subject only to Customary Permitted Liens
    	
 
    	
$
    	
 
    	
 
    
	
b.
    	
Eligible   Raw Materials Inventory to be included in Aggregate Borrowing Base Amount   (60% times 2.a.)
    	
 
    	
$
    	
 
    	
 
    
	
3.
    	
Eligible Finished Goods Inventory(3)
    	
 
    	
 
    	
 
    
	
a.
    	
Net   Book Value of finished goods in accordance with GAAP that constitute Collateral   and in which the Collateral Agent has a valid, perfected and enforceable   security interest, subject only to Customary Permitted Liens
    	
 
    	
$
    	
 
    	
 
    
	
b.
    	
Eligible   Finished Goods Inventory to be included in Aggregate Borrowing Base Amount   (60% times 3.a.)
    	
 
    	
$
    	
 
    	
 
    
	
4.
    	
Eligible Work-in-Process Inventory(4)
    	
 
    	
 
    	
 
    
	
a.
    	
Net   Book Value of work-in-process in accordance with GAAP that constitute Collateral   and in which the Collateral Agent has a valid, perfected and enforceable   security interest, subject only to Customary Permitted Liens
    	
 
    	
$
    	
 
    	
 
    
	
b.
    	
Deferred   production costs to the extent they are included in work-in-process
    	
 
    	
$
    	
 
    	
 
    
	
c.
    	
Capitalized   pre-production costs to the extent they are included in work-in- process
    	
 
    	
$
    	
 
    	
 
    
	
d.
    	
Forward   loss provision to the extent it is included in work-in-process
    	
 
    	
$
    	
 
    	
 
    
							

 

(1) Upon the occurrence of any Airbus Discontinuance or any 787 Discontinuance, any Eligible Receivables associated with the 787 Program or the A350 XWB Program shall be excluded.

(2) Upon the occurrence of any Airbus Discontinuance or any 787 Discontinuance, any Eligible Raw Materials Inventory associated with the 787 Program or the A350 XWB Program shall be excluded. 

(3) Upon the occurrence of any Airbus Discontinuance or any 787 Discontinuance, any Eligible Finished Goods Inventory associated with the 787 Program or the A350 XWB Program shall be excluded. 

(4) Upon the occurrence of any Airbus Discontinuance or any 787 Discontinuance, any Eligible Work-in-Process Inventory associated with the 787 Program or the A350 XWB Program shall be excluded.

 

 

	
e.               Eligible   Value of Eligible Work-in-Process Inventory (4.a. minus 4.b. minus   4.c. minus 4.d.)
    	
 
    	
$
    	
 
    	
 
    
	
f.                Eligible   Work-in-Process Inventory to be included in Aggregate Borrowing Base Amount   (35% times 4.e.)
    	
 
    	
$
    	
 
    	
 
    
	
5.              Eligible   P&E(5)(6)
    	
 
    	
 
    	
 
    
	
a.              Net Book   Value of property and equipment (other than real property) in accordance with   GAAP that constitute Collateral and in which the Collateral Agent has a   valid, perfected and enforceable security interest, subject only to Customary   Permitted Liens(7)
    	
 
    	
$
    	
 
    	
 
    
	
b.              Eligible   P&E to be included in Aggregate Borrowing Base Amount (50% times 5.a.)
    	
 
    	
$
    	
 
    	
 
    
	
6.              Eligible Real   Estate
    	
 
    	
 
    	
 
    
	
a.              Net Book   Value of Mortgaged Properties in respect of which the Collateral Agent has   valid, perfected and enforceable Mortgages, subject only to Customary   Permitted Liens(8)
    	
 
    	
$
    	
 
    	
 
    
	
b.              Eligible Real   Estate to be included in Aggregate Borrowing Base Amount (50% times   6.a.)
    	
 
    	
$
    	
 
    	
 
    
	
7.              Eligible   Intercompany Loans
    	
 
    	
 
    	
 
    
	
a.              Loans made by   any of the Loan Parties to any Foreign Subsidiary of the Borrower that   constitute Collateral(9)
    	
 
    	
$
    	
 
    	
 
    
	
b.              Eligible   Intercompany Loans to be included in Aggregate Borrowing Base Amount (75% times   7.a.)
    	
 
    	
$
    	
 
    	
 
    
	
AGGREGATE BORROWING BASE AMOUNT
    	
 
    	
 
    	
 
    
	
1.              Aggregate   Borrowing Base Amount (1.g. plus 2.b. plus 3.b. plus   4.f. plus 5.b. plus 6.b. plus 7.b.)
    	
 
    	
$
    	
 
    	
 
    
	
2.              Total Secured   Outstandings
    	
 
    	
 
    	
 
    
	
a.              Aggregate   outstanding principal of all Terms Loans
    	
 
    	
$
    	
 
    	
 
    
	
b.              Total   Revolving Outstandings
    	
 
    	
$
    	
 
    	
 
    
	
c.               All other   Indebtedness secured by a Lien
    	
 
    	
$
    	
 
    	
 
    
	
d.              Total Secured   Outstandings (2.a. plus 2.b. plus 2.c.)
    	
 
    	
$
    	
 
    	
 
    
	
3.              Section 8.12(e) of the   Credit Agreement requires that the Borrower not permit Total Secured   Outstandings to exceed the Aggregate Borrowing Base Amount set forth above.   The Borrower [is][is not] in compliance with Section 8.12(e) of   the Credit Agreement.
    	
 
    	
 
    	
 
    

 

Note: In the event of conflict between the provisions and formulas set forth in this Schedule 1 and the

 

(5) Upon the occurrence of any Airbus Discontinuance or any 787 Discontinuance, any Eligible P&E associated with the 787 Program or the A350 XWB Program shall be excluded.

(6) Any tooling not owned by the Loan Parties shall not be included in Eligible P&E.

(7) Any such property and equipment constituting a fixture (as defined in the Uniform Commercial Code), shall constitute Eligible P&E only if a fixture filing has been filed in the appropriate local jurisdiction in respect thereof.

(8) No Mortgaged Property shall constitute Eligible Real Estate until the Loan Parties have delivered to the Collateral Agent appraisals that comply with the requirements of the Federal Institutions Reform, Recovery and Enforcement Act with respect to a sampling of parcels of real estate included in the Mortgaged Properties (with the sample to be agreed between the Borrower and the Administrative Agent).

(9) Loans shall not be included in Eligible Intercompany Loans (a) unless the promissory note or other instrument evidencing such Indebtedness has been delivered to the Collateral Agent, together with a duly executed allonge or other instrument of transfer with respect thereto and (b) if the aggregate outstanding principal amount thereof, when taken together with all other outstanding Indebtedness of the applicable obligor, exceeds the going concern value of the obligor with respect to such loan.

 

 

provisions and formulas set forth in the Credit Agreement, the provisions and formulas of the Credit Agreement shall prevail.Exhibit 10.40

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (“Agreement”) is entered into as of June      , 2013 (the “Effective Date”) by Spirit AeroSystems, Inc., a Delaware corporation (“we,” “us,” “our,” and other similar pronouns), and Heidi Wood (“you,” “your,” “yours,” and other similar pronouns). Our parent company is Spirit AeroSystems Holdings, Inc. (“Holdings”), and references in this Agreement to “Spirit” mean us and Holdings collectively.

 

Recitals

 

A.                                    We are engaged in the manufacture, fabrication, maintenance, repair, overhaul, and modification of aerostructures and aircraft components, and market and sell our products and services to customers throughout the world (together with any other businesses in which Spirit may in the future engage, by acquisition or otherwise, the “Business”).

 

B.                                    We have agreed to employ you as our Senior Vice President Strategy, and you have agreed to accept such employment in accordance with the terms and conditions of this Agreement.

 

C.                                    In the course of performing your duties for us, you are likely to acquire confidential and proprietary information belonging to us, our customers, and our suppliers, develop relationships that are vital to our Business and goodwill, and acquire other important assets in which we have a protectable interest, and you have agreed to the covenants in this Agreement required to protect those assets.

 

Agreement

 

In consideration of the foregoing and the representations, warranties and mutual covenants herein, you and we agree as follows:

 

1.                                      Employment

 

(a)                                 Position and Responsibility We agree to employ you as our Senior Vice President Strategy, reporting to the Chief Executive Officer, to perform such duties in and about our Business as are appropriate for a person in such position, which may include serving as an executive officer or member of the board of directors of any other affiliated company at our request. The job title and duties referred to in the preceding sentence may be changed by us in our sole discretion at any time. Your office will be at our headquarters in Wichita, KS. You will devote your full time to this employment

 

(b)                                 Employment Period Your employment will commence on the Effective Date, will continue for a period of two years after the Effective Date (the “Initial Term”), and will be automatically extended for successive one-year periods thereafter (each a “Renewal Term”), unless either of us provides the other with written notice at least ninety days in advance of the expiration of the Initial Term or the then-current Renewal Term, as applicable, that such period will not be so extended (the Initial Term and any Renewal Term are, collectively, the

 

1

 

“Employment Period”). In all cases, your employment is subject to earlier termination as provided in this Agreement.

 

2.                                      Performance

 

You will  devote your best efforts and abilities to faithfully preserve and advance our Business, welfare, and best interests. You will strictly comply with all Spirit rules, policies, and procedures in effect and as amended from time to time, including, but not limited to, our Code of Ethical Business Conduct, Insider Trading Policy, Anti-Bribery Policy, Related Person Transaction Policy, Special Security Agreement, and internal and disclosure controls; follow all applicable U.S. and foreign laws and regulations; and be governed by our decisions and instructions consistent with the duties assigned to you.

 

3.                                      Compensation

 

Except as otherwise provided herein, for all services to be performed by you in any capacity, including without limitation any services as an officer, director, member of any committee, or any other duties assigned to you, during the Employment Period we will pay or provide you with the following, and you will accept the same, as compensation for your covenants in and performance of your duties under this Agreement:

 

(a)                                 Base Salary You will be entitled to an annual salary of $400,000 (“Base Salary”), which will be paid in accordance with our policies and procedures. The Base Salary may be changed from time to time on a discretionary basis or based upon your and/or our performance or such other factors as the Board or the Board’s compensation committee (“Committee”) deems appropriate in its sole discretion.

 

(b)                                 Sign On Bonuses

 

(i)                                Signing Bonus — Cash In consideration of entering into this Agreement, we will pay you a one-time grossed-up cash bonus of $150,000 (the “Signing Bonus”), plus an amount equal to all taxes required to be withheld with respect to your receipt of that payment, so that after such taxes are withheld you will receive a net amount of $150,000. This amount will be payable within 30 days of the Effective Date of this Agreement. Payment of the Signing Bonus is conditioned upon you being employed on the date payment is made and remaining employed by us for a period of not less than one year after the date of the payment. If the foregoing condition precedent is not satisfied with respect to this payment, this payment plus the grossed-up taxes thereon, must be immediately repaid to us, except that you will not be required to repay any amount if you are terminated by us without Cause. In the event of your termination under circumstances that require repayment of part or all of the Signing Bonus, we may deduct from your paycheck(s) (or other amounts owed to you) an amount equal to the amount due to be repaid. To the extent such deductions are not sufficient to fully reimburse us, you will remain obligated to pay us in full for such amounts still due and owing.

 

(ii)                             Signing Bonus — Restricted Stock Subject to approval by the Holdings board of directors, in consideration of entering into this Agreement, we will grant you a

 

2

 

one-time award of $440,000 of restricted stock (the “Bonus Shares”) under the Spirit AeroSystems Holdings, Inc. Long-Term Incentive Plan, as amended or restated from time to time (the “LTIP”), subject to the terms and provisions of the LTIP and this Section 3(b). The Bonus Shares will vest in accordance with the following vesting schedule:

 

	
Years of Service
   After Effective Grant Date
    	
 
    	
Percent Vested
   in Bonus Shares
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Less than 2
    	
 
    	
0
    	
%
    
	
2 but less than 3
    	
 
    	
33
    	
%
    
	
3 but less than 4
    	
 
    	
66
    	
%
    
	
4 or more
    	
 
    	
100
    	
%
    

 

For purposes of this vesting schedule, the “Effective Grant Date” will be May 7, 2013, which is the same date grants of shares under the LTIP were made to the broad class of LTIP participants for 2013, with the effect that the Bonus Shares will vest on the same schedule as the shares previously awarded to the broad class of LTIP participants for 2013. You will be credited with a year of service after the Effective Grant Date for each 12-month period after the Effective Grant Date during which you are continuously performing services (or deemed to be continuously performing services) for us.

 

(iii)                               Number of Shares For purposes of determining the number of shares of stock to be granted in connection with the award described in the foregoing clause (ii), the total dollar value of the award will be divided by an amount equal to the average of the opening value and the closing value of a share of our Class A common stock traded on the New York Stock Exchange, as determined on the third trading day after the date on which we publicly announce our earnings for the second fiscal quarter of 2013. The number of shares so determined with respect to each award will be rounded up to the nearest whole number.

 

(c)                                  Short-Term Incentive Plan You are eligible to participate in the Spirit AeroSystems Holdings, Inc. Short-Term Incentive Plan, as amended or restated from time to time (“STIP”), pursuant to and in accordance with the terms and conditions of the STIP. Your STIP award opportunity will be 80% of Base Salary if target performance goals are reached and 160% of Base Salary if outstanding performance goals are reached. If target performance goals are not reached, you will be entitled to such incentive compensation, if any, as is otherwise provided by the STIP and our policies. In addition to the foregoing, we agree that (i) for the 2013 plan year, you will be entitled to an incentive compensation award under the STIP of 80% of Base Salary; (ii) the amount you are entitled to receive for the 2013 plan year will not be prorated due to service for less than the full 2013 plan year; (iii) the cash component payable to you for the 2013 plan year shall be paid to you on or before December 1, 2013, in the amount of $160,000, less applicable withholdings; and (iv) the stock component payable to you for the 2013 plan year shall be made in the time and manner consistent with the STIP, in or about February 2014, and will be subject to the STIP’s normal vesting schedule.

 

(d)                                 Long-Term Incentive Plan You are eligible to participate in annual awards under the LTIP granted by the Board or the Committee, pursuant to and in accordance

 

3

 

with the terms and conditions of the LTIP, as amended or restated from time to time. Each year of the Initial Term, you will receive an annual LTIP award equal to 110% of Base Salary. Your annual LTIP awards will be granted at the time and on the terms that we grant annual LTIP awards to our other executives.

 

(e)                                  Nonqualified Deferred Compensation Plan You are eligible to participate in the Spirit AeroSystems Holdings, Inc. Amended and Restated Deferred Compensation Plan, as amended or restated from time to time (“DCP”), subject to and in accordance with the terms and provisions of the DCP. You may elect to voluntarily defer compensation under the DCP in accordance with the terms and conditions of the DCP and the plan administrator’s policies and procedures.

 

(f)                                   Other Benefit Plans You will also be eligible to participate in other executive benefit plans, policies, practices, and arrangements in which one or more of our senior executives is eligible to participate from time to time, including without limitation (i) any defined benefit or defined contribution retirement plan, excess or supplementary plan, profit-sharing plan, savings plan, health and dental plan, disability plan, survivor-income and life-insurance plan, executive financial planning program, or other arrangement, or any successors thereto; (ii) any perquisite allowance or reimbursement arrangement the Board or Committee may adopt; and (iii) such other benefit plans as we may establish or maintain from time to time (collectively “Benefit Plans”). Your entitlement to any other compensation or benefits will be determined in accordance with the terms and conditions of the Benefit Plans and other applicable programs, practices, and arrangements then in effect.

 

(g)                                  Earned Time Off You will be provided with earned time off and 12 paid holidays each year in accordance with our policies and practices in effect from time to time. Notwithstanding any contrary policy or practice, however, you will be credited with a minimum of 16 days of earned time off per year, of which 16 days will be immediately available to you upon the Effective Date.

 

(h)                                 Fringe Benefits You will be provided with all other fringe benefits and perquisites awarded by the Board or Committee for your position level from time to time, including relocation benefits at the Company’s Level 4 Policy.

 

(i)                                     Withholding Taxes We will have the right to deduct from all payments made to you hereunder any federal, state, local and foreign taxes required by law to be withheld.

 

(j)                                    Expenses During your employment, we will promptly pay or reimburse you for all reasonable out-of-pocket expenses incurred by you in the performance of your duties, in accordance with our policies and procedures then in effect.

 

The payment or reimbursement of expenses described in this Section 3(j) are not intended to provide for the deferral of compensation within the meaning of Code Section 409A because all such expenses are to be paid or reimbursed currently and/or will be tax-free. To the extent such expenses are deemed to provide for the deferral of compensation within the meaning of Code Section 409A, they are intended to meet the requirements of a specified date or a fixed

 

4

 

schedule of payments, and this reimbursement provision will be interpreted and applied in a manner consistent with such requirements. The right to payment of, or reimbursement for, expenses is not subject to liquidation or exchange for any other benefit.

 

4.                                      Restrictions

 

(a)                                 Acknowledgements You acknowledge and agree that (i) during the Employment Period, because of the nature of your responsibilities and the resources provided by us, you will acquire and/or develop valuable and confidential skills, information, trade secrets, and relationships with respect to our Business; (ii) you may develop on our behalf a personal relationship with various persons, including but not limited to representatives of customers and suppliers, where you may be a principal or our only contact with such persons, and as a consequence, you will occupy a position of trust and confidence to us; (iii) the Business involves the manufacturing, marketing, and sale of our products and services to customers throughout the world, our competitors, both in the United States and internationally, consist of both domestic and international businesses, and the services to be performed by you involve aspects of both our domestic and international business; and (iv) it would be impossible or impractical for you to perform your duties without access to our confidential and proprietary information and contact with persons who are valuable to our Business and goodwill.

 

(b)                                 Reasonableness In view of the foregoing and in consideration of the remuneration to be paid to you, you agree that it is reasonable and necessary for the protection of our Business and goodwill that you undertake the covenants in this Section 4 regarding your conduct during and subsequent to your employment by us, and acknowledge we will suffer irreparable injury if you engage in any conduct prohibited by this Section 4.

 

(c)                                  Non-Compete During the Employment Period and for a period of (1) in the case of involuntary termination without Cause, one year after termination of employment, and (2) in the case of termination of employment for any other reason, two years after such termination of employment, neither you nor any individual, corporation, partnership, limited liability company, trust, estate, joint venture, or other organization or association (“Person”) with your assistance nor any Person in which you directly or indirectly have any interest of any kind (without limitation) will, anywhere in the world, directly or indirectly own, manage, operate, control, be employed by, serve as an officer or director of, solicit sales for, invest in, participate in, advise, consult with, or be connected with the ownership, management, operation, or control of any business that is engaged, in whole or in part, in the Business, or any business that is competitive with the Business or any portion thereof, except for our exclusive benefit. You will not be deemed to have breached the provisions of this Section 4(c) solely by holding, directly or indirectly, not greater than 2% of the outstanding securities of a company listed on a national securities exchange.

 

(d)                                 Non-Solicitation During the Employment Period and for a period of (1) in the case of involuntary termination without Cause, one year after termination of employment, and (2) in the case of termination of employment for any other reason, two years after such termination of employment, neither you nor any Person with your assistance nor any Person in which you directly or indirectly have an interest of any kind (without limitation) will, directly or

 

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indirectly (A) solicit or take any action to induce any employee to quit or terminate their employment with us or our affiliates; or (B) employ as an employee, independent contractor, consultant, or in any other position any person who was an employee of ours or our affiliates during the aforementioned period.

 

(e)                                  Confidentiality

 

(i)                                     Confidential Information For purposes of this Agreement, “Confidential Information” means any information (whether in written, oral, graphic, schematic, demonstration, or electronic format, whether or not specifically marked or identified as confidential, and whether obtained by you before or after the Effective Date), not otherwise publicly disclosed by Spirit, regarding (without limitation) Spirit, its Business, customers, suppliers, business partners, prospects, contacts, contractual arrangements, discussions, negotiations, evaluations, labor negotiations, bids, proposals, aircraft programs, costs, pricing, financial condition or results, plans, strategies, governmental relations, projections, analyses, methods, processes, models, tooling, know-how, trade secrets, discoveries, research, developments, inventions, engineering, technology, proprietary information, intellectual property, designs, computer software, intelligence, legal or regulatory compliance, accounting decisions, opportunities, challenges,’ and any other information of a confidential or proprietary nature. Notwithstanding the foregoing, Confidential Information will not include any information that (A) you are required to disclose by the order of a court or administrative agency, subpoena, or other legal or administrative demand, so long as (1) you give us written notice and an opportunity to contest or seek confidential treatment of such disclosure; and (2) you fully cooperate at our expense with any such contest or confidential treatment request; (B) has been otherwise publicly disclosed or made publicly available by Spirit; or (C) was obtained by you in good faith after your employment with us ended from a source that was under no obligation of confidentiality to Spirit or any customer or supplier.

 

(ii)                                  Non-Use and Non-Disclosure Without our express written consent, you will not at any time (whether during the Employment Period or after any termination of your employment for any reason) use for any purpose (other than for our exclusive benefit) or disclose to any Person (except at our direction) any Confidential Information.

 

(f)                                   Effect of Breach You agree that a breach of this Section 4 cannot adequately be compensated by money damages and, therefore, we will be entitled, in addition to any other right or remedy available to us (including, but not limited, to an action for damages, accounting, or disgorgement of profit), to an injunction restraining such breach or a threatened breach and to specific performance of such provisions, and you consent to the issuance of such injunction and the ordering of specific performance without the requirement for us to post a bond or other security or to prove lack of an adequate remedy at law.

 

(g)                                  Other Rights Preserved Nothing in this Section 4 eliminates or diminishes rights we may have with respect to the subject matter hereof under other agreements, our governing documents or statutes, or provisions of law (including but not limited to common law and the Uniform Trade Secrets Act), equity, or otherwise. Without limiting the foregoing, this

 

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Section 4 does not limit any rights we may have under any Spirit policies or any agreements with you regarding Confidential Information.

 

5.                                      Termination Your employment with us will terminate upon the following circumstances:

 

(a)                                 Without Cause At any time at the election of either you or us for any reason or no reason, without Cause, but subject to the provisions of this Agreement. It is expressly understood that your employment is strictly “at will.”

 

(b)                                 Cause At any time at our election for Cause.

 

“Cause” for this purpose means (i) your commission of a material breach of this Agreement or acts involving fraud, material and intentional dishonesty, material and intentional unauthorized disclosure of Confidential Information, the commission of a felony or other crime involving moral turpitude, or material violation of Spirit policies; (ii) direct and deliberate acts constituting a material breach of your duty of loyalty to Spirit; (iii) your refusal or material failure (other than by reason of your serious physical or mental illness, injury, or medical condition) to perform your job duties and responsibilities, including, but not limited to, any duties or responsibilities reasonably assigned to you by the Board, if such refusal or failure is not remedied within 30 days after you receive written notice thereof from the Board; (iv) your material underperformance, as reflected in two consecutive written performance reviews provided to you not less than 6 months apart; or (v) your inability to obtain and maintain the appropriate level of United States security clearance.

 

(c)                                  Death or Disability Your death or your inability to perform the services required of you for a period of 180 days during any twelve-month period (“Disability”).

 

6.                                      Effect of Termination

 

(a)                                 General Rule If your employment terminates for any reason other than as described in Section 6(b) below, we will pay your compensation only through the last day of employment, and, except as otherwise expressly provided in this Agreement or the STIP, the LTIP, the DCP, or any Benefit Plan, we will have no further obligation to you.

 

(b)                                 Termination Without Cause If your employment is terminated by us without Cause at any time during the Initial Term of the Agreement, then for so long as you comply with your continuing obligations under Section 4 we will (1) continue to pay your monthly Base Salary in effect immediately before termination of your employment for a period of six months, and (2) at our option, either pay the cost of COBRA medical and dental benefits coverage for a period of six months or pay you an amount each month for six months equal to the cost of providing COBRA medical and dental benefits.

 

To receive the benefits described in this Section 6(b), you will be required to sign a general release of claims in a form we deem acceptable. The release must be provided, and any revocation period must have expired, not later than 60 days after termination of employment. If

 

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the foregoing conditions are satisfied then, except as provided below, payment of salary continuation and other benefits will begin 60 days after termination of employment.

 

Notwithstanding any contrary provision of this Section 6(b), if you are a Specified Employee at the time employment terminates, the payments described in Section 6(b) will, to the extent such amounts are deferred compensation within the meaning of Code Section 409A, be delayed until the date that is the earlier of (i) six months after your termination of employment, or (ii) the date of your death, and upon reaching that date, all amounts that would have been paid during the six-month delay period, plus interest thereon at the prime rate (as published in the Wall Street Journal) from the date the payment would have been made but for this paragraph to the date of payment, will be paid in a single lump sum, and all remaining amounts will be paid in equal monthly payments for the remainder of the Salary Continuation Period.

 

“Specified Employee” means that, with respect to a corporation any stock in which is publicly traded on an established securities market or otherwise, you are, or are treated under Code Section 409A as, either (A) an officer having annual compensation greater than $130,000 (as adjusted for cost-of-living increases in accordance with Code Section 416(i)(1)(A) and Code Section 415(d)), (B) a 5% owner, or (C) a 1% owner having annual compensation from the corporation of more than $150,000. For purposes of determining your percentage ownership, the constructive-ownership rules described in Code Section 416(i)(1)(B) will apply. The determination whether you are a Specified Employee will be made in accordance with regulations issued under Code Section 409A and other available guidance.

 

Except as otherwise expressly provided in this Agreement or in any Benefit Plan, we will have no further obligation to you

 

(c)                                  Disability or Death If your employment terminates due to Disability or death, we will pay your monthly Base Salary only through the date of termination.

 

(d)                                 Your Post-Termination Obligations On termination of employment for any reason, (1) you will resign as of the date of such termination as a director and officer of Spirit and its affiliates and as a fiduciary of any of Spirit’s or its affiliates’ benefit plans, (2) you will promptly execute and deliver upon such termination any document reasonably required by Spirit or an affiliate to evidence the foregoing resignations, (3) you will immediately deliver to us all Confidential Information, all copies and embodiments thereof, and all records, notes, worksheets, schematics, customer lists, supplier lists, memoranda, computer files and storage devices, analyses and derivative works based thereon or which relate in any way thereto, and (4) you will pay to us any amounts due and owing by you as specified in this Agreement.

 

(e)                                  Survival of Provisions Your obligations under 4 through 9 of this Agreement will survive the expiration or termination of your employment for any reason.

 

7.                                      Representations and Warranties You represent and warrant to us that:

 

(a)                                 No Conflicts To the best of your knowledge, you are under no duty (whether contractual, fiduciary or otherwise) that would prevent, restrict or limit you from

 

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entering into this Agreement and fully performing all duties and services for us, and the performance of such duties and services will not conflict with any other agreement, policy or obligation by which you are bound.

 

(b)                                 No Hardship Your experience and/or abilities are such that observance of the covenants in this Agreement will not cause you any undue hardship and will not unreasonably interfere with your ability to earn a livelihood.

 

8.                                      Clawback Right You acknowledge that certain amounts paid under this Agreement or the Benefit Plans described herein are subject to any Spirit policy on the recovery of compensation (i.e., a so-called “clawback policy”), as it exists now or as later adopted, and as thereafter amended from time to time.

 

9.                                      Mediation

 

(a)                                 General Obligation to Mediate Except as provided in this Agreement, prior to initiating any legal action, the parties agree to submit all unsettled claims, disputes, controversies, and other matters in question between them arising out of or relating to this Agreement (including but not limited to any claim that this Agreement or any of its provisions is invalid, illegal, or otherwise voidable or void) or the dealings or relationship between them (“Disputes”) to mediation in Wichita, Kansas, in accordance with the Commercial Mediation Rules of the American Arbitration Association currently in effect. The mediation will be private, confidential, voluntary, and nonbinding. Either party may withdraw from the mediation at any time before signing a settlement agreement by giving written notice to the other party and the mediator. The mediator will be neutral and impartial. The mediator will be disqualified as a witness, consultant, expert, or counsel for either party with respect to the matters in Dispute and any related matters. Each party will pay its respective attorneys’ fees and other costs associated with the mediation, and each party will equally bear the costs and fees of the mediator. If a Dispute cannot be resolved through mediation within 90 days of its submission to mediation, the parties may proceed with legal action.

 

(b)                                 Confidentiality The parties agree that they will not disclose, or permit those acting on their respective behalf to disclose, any aspect of the proceedings under Section 9(a), including but not limited to the resolution or the existence or amount of any award, to any Person, unless divulged (i) to an agency of the federal or state government; (ii) pursuant to a court or administrative order; (iii) pursuant to a requirement of law; (iv) pursuant to prior written consent of the parties; (v) pursuant to a legal proceeding to enforce a settlement agreement or arbitration award; or (vi) by Spirit, to the extent required under federal securities laws and regulations. This provision does not prohibit the parties’ disclosure of the terms of any settlement to their attorney(s), accountant(s), financial advisor(s), or family members, so long as such persons first agree to comply with the provisions of this Section 9(b).

 

(c)                                  Injunctions Notwithstanding anything to the contrary in this Section, the parties will have the right in a proper case to obtain temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction.

 

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10.                               General

 

(a)                                 Notices All notices required or permitted under this Agreement must be in writing and may be given by personal delivery, effective on the day of such delivery, or may be mailed by certified mail, return receipt requested, effective three business days after the date of mailing, addressed as follows:

 

To us:

 

Spirit AeroSystems, Inc.

Attention: Senior Vice President, General Counsel and Secretary

3801 S. Oliver

P.O. Box 780008, Mail Code K11-60

Wichita, KS 67278-0008

Facsimile: 316.529.4539

Email: jon.d.lammers@spiritaero.com

 

or such other person or contact information as designated in writing to you.

 

To you:

 

Heidi Wood

 

at your last known residence address, email, or facsimile number or to such other contact information as designated in writing to us.

 

(b)                                 Successors Neither this Agreement nor any right or interest herein will be assignable or transferable (whether by pledge, grant of a security interest or otherwise) by you or your beneficiaries or legal representatives, except by will, the laws of descent and distribution, or inter vivos revocable living grantor trust as your beneficiaries, and any other purported assignment will be void. This Agreement will be binding upon and will inure to the benefit of Spirit, its successors and assigns, and will be binding on you and your heirs, beneficiaries, and legal and personal representatives.

 

(c)                                  Waiver, Modification, and Interpretation No provisions of this Agreement may be modified, waived, or discharged except by written instrument signed by you and an appropriate officer of Spirit empowered to sign the same by our or Holdings’ Board. No waiver by either party at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by the other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same time or at any prior or subsequent time.

 

(d)                                 Interpretation The validity, interpretation, construction, and performance of this Agreement will be governed by the laws of the State of Kansas, except that the corporate law of the State of Delaware will govern issues related to the issuance of common stock. Any

 

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action brought to enforce or interpret this Agreement will be maintained exclusively in the state and federal courts located in Wichita, Kansas.

 

(e)                                  Headings The headings in this Agreement are for reference purposes only and will not in any way affect the meaning or interpretation of any provision of this Agreement. No provision of this Agreement will be interpreted for or against either party on the basis that such party was the draftsman of such provision, and no presumption or burden of proof will arise disfavoring or favoring either party by virtue of the authorship of any provision of this Agreement.

 

(f)                                   Counterparts We and you may execute this Agreement in counterparts, each of which will be deemed an original and both of which will constitute a single instrument. In proving this Agreement, it will not be necessary to produce or account for more than one such counterpart.

 

(g)                                  Invalidity of Provisions If a court of competent jurisdiction declares that any provision of this Agreement is invalid, illegal, or unenforceable in any respect, then in lieu of such illegal, invalid, or unenforceable provision the court may add as a part of this Agreement a legal, valid, and enforceable provision as similar in terms to such illegal, invalid, or unenforceable provision as is possible. If such court cannot so substitute or declines to so substitute for such illegal, invalid, or unenforceable provision (i) such provision will be fully severable; (ii) this Agreement will be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof; and (iii) the remaining provisions of this Agreement will continue in full force and effect and not be affected by the illegal, invalid, or unenforceable provision or by its severance herefrom. The covenants in this Agreement will each be construed to be a separate agreement independent of any other provision of this Agreement, and the existence of any claim or cause of action of yours against us, predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by us of any covenants in this Agreement.

 

(h)                                 Entire Agreement This Agreement (together with the documents expressly referred to herein) constitutes the entire agreement between the parties, supersedes in all respects any prior agreement between you and us, and may not be changed except by written instrument duly executed by you and us in the same manner as this Agreement.

 

(i)                                     Compliance with Code Section 409A The amounts payable to you after separation from service under 6(b) (if any) are intended to be exempt from the definition of “deferred compensation” for purposes of Code Section 409A as amounts payable only in the event of involuntary termination without Cause. To the extent any such amounts constitute “deferred compensation” for purposes of Code Section 409A, then those amounts will be paid to you in equal monthly installments, and payment of such amounts may not be accelerated. This Section 10(i) and the terms of this Agreement are intended to comply with, and will be interpreted and construed in accordance with and in a manner that complies with, the requirements of Code Section 409A, to the extent necessary.

 

[Signature page follows.]

 

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IN WITNESS WHEREOF, this Agreement has been executed by the parties on the date(s) set forth below, to be effective as of the Effective Date.

 

 

	
 
    	
SPIRIT   AEROSYSTEMS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Heidi   Wood
    
						

 

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9.                                                Miscellaneous. This Agreement shall be binding upon, and inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and assigns, but this Agreement shall not be assignable by the Recipient without the prior written consent of the Company. This Agreement constitutes the complete agreement between the parties hereto with respect to the subject matter hereof and shall continue in full force and effect until terminated by mutual agreement of the parties hereto. The section headings used herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. This Agreement shall be construed, performed and enforced in accordance with, and governed by, the internal laws of the State of Kansas, without giving effect to the principles of conflicts of law thereof, and each party consents to personal jurisdiction in such state and voluntarily submits to the jurisdiction of the courts of such state in any action or proceeding relating to this Agreement. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision hereof is held to be invalid, illegal or unenforceable under any applicable law or rule in any jurisdiction, such provision will be ineffective only to the extent of such invalidity, illegality, or unenforceability, without invalidating the remainder of this Agreement. This Agreement may not be modified or amended and no provision hereof may be waived, in whole or in part, except by a written agreement signed by the parties hereto. No waiver of any breach or default hereunder shall be considered valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

 

10.                                         Term. This Agreement shall remain in full force and effect for two years from the date hereof, or until such time as the Recipient becomes employed by the Company, at which point the terms of the Recipient’s Employment Agreement will control the parties’ relationship as regards the subject matter of this Agreement.

 

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

 

	
[The Recipient]
    	
 
    	
Spirit AeroSystems , Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Heidi R. Wood
    	
 
    	
By
    	
/s/   Suzanne K. Smith
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
Title:
    	
Director,   Global H.R. Services

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