Document:

Ex-10.2

 

Exhibit 10.2

AMENDMENT NO. 3 TO

FINANCING AGREEMENT

     THIS AMENDMENT NO. 3 TO FINANCING AGREEMENT (“Amendment”), dated this 28th day of
September, 2005, made by and among

     AIRCRAFT INTERIOR DESIGN, INC., a Florida corporation (“AID”), BRICE MANUFACTURING COMPANY,
INC., a California corporation (“Brice”), TIMCO AVIATION SERVICES, INC., a Delaware corporation
(“Parent”), TIMCO ENGINE CENTER, INC., a Delaware corporation (“Engine”), TIMCO ENGINEERED SYSTEMS,
INC., a Delaware corporation (“Engineered Systems”), and TRIAD INTERNATIONAL MAINTENANCE
CORPORATION, a Delaware corporation (“TIMCO”; AID, Brice, Parent, Engine, Engineered Systems and
TIMCO being collectively called the “Borrowers” and individually, a “Borrower”);

     AVIATION SALES DISTRIBUTION SERVICES COMPANY, a Delaware corporation (“Distribution
Services”), AVIATION SALES LEASING COMPANY, a Delaware corporation (“Leasing”), AVIATION SALES
PROPERTY MANAGEMENT CORP., a Delaware corporation (“Property Management”), AVS/CAI, INC., a Florida
corporation (“AVS/CAI”), AVS/M-1, INC., a Delaware corporation (“AVS/M-1”), AVS/M-2, INC., a
Delaware corporation (“AVS/M-2”), AVS/M-3, INC., an Arizona corporation (“AVS/M-3”), AVSRE, L.P., a
Delaware limited partnership (“AVSRE”), HYDROSCIENCE, INC., a Texas corporation (“Hydroscience”),
TMAS/ASI, INC., an Arkansas corporation (“TMAS/ASI”), and WHITEHALL CORPORATION, a Delaware
corporation (“Whitehall”; Distribution Services, Leasing, Property Management, AVS/CAI, AVS/M-1,
AVS/M-2, AVS/M-3, AVSRE, Hydroscience, TMAS/ASI and Whitehall being collectively called the
“Guarantors” and, individually, a “Guarantor”; and the Borrowers and the Guarantors being
collectively called the “Companies” and, individually, a “Company”);

     THE CIT GROUP/BUSINESS CREDIT, INC., in its capacity as collateral and administrative agent
for the Lenders (“Agent”); and

     THE CIT GROUP/BUSINESS CREDIT, INC., a New York corporation, and WELLS FARGO FOOTHILL, LLC, a
California limited liability company (collectively, the “Lenders” and, individually, a “Lender”)

which amends that certain Financing Agreement, dated April 5, 2004, as amended by Amendment No. 1
thereto, dated July 20, 2004, and by Amendment No. 2 thereto, dated April 8, 2005 (the Financing
Agreement, as amended, modified, supplemented or restated from time to time, being hereinafter
referred to as the “Financing Agreement”), among the Borrowers, the Guarantors, the Agent and the
Lenders. All capitalized terms used herein without definition shall have the meanings ascribed to
such terms in the Financing Agreement.

 

 

RECITALS

     A. Pursuant to the Financing Agreement, upon the terms and subject to the conditions contained
therein, the Lenders have agreed to make loans and extend credit to and for the benefit of the
Borrowers secured by the Collateral.

     B. The Borrowers have requested that the Agent and the Lenders amend Section 7.10(c) of the
Financing Agreement to change the required covenant for the four fiscal quarters ending September
30, 2005.

     C. The Agent and the Lenders have agreed with such request and, to accomplish the foregoing,
the Borrowers, the Agent and the Lenders have agreed to make and execute this Amendment and the
Guarantors have agreed to grant their consent to such amendment to the Financing Agreement.

STATEMENT OF AGREEMENT

     NOW, THEREFORE, for and in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby expressly acknowledged, each
Borrower, each Guarantor, the Agent and each Lender hereby agree as follows:

ARTICLE I

AMENDMENT TO FINANCING AGREEMENT

     1.1 Financial Covenant. Effective on the date of the execution of this Amendment by
each of the parties hereto, Section 7.10(c) of the Financing Agreement is amended in its entirety
to read as follows:

	 	“(c)	 	Maintain a ratio of (i) the sum of Indebtedness as of such date
minus PIK Subordinated Debt as of such date to (ii) EBITDA for the
four (4) Fiscal Quarters then ending of not more than the ratio set forth
below for the applicable period:

	 	 	 
	Period	 	Ratio
	 

	Fiscal Quarter ending September 30, 2005

	 	6.0 to 1.0
	Fiscal Quarter ending December 31, 2005

	 	4.5 to 1.0
	Fiscal Quarter ending March 31, 2006

	 	4.3 to 1.0
	Fiscal Quarter ending June 30, 2006

	 	4.3 to 1.0
	Fiscal Quarter ending September 30, 2006

	 	4.3 to 1.0
	Fiscal Quarter ending December 31, 2006

	 	4.3 to 1.0
	Fiscal Quarter ending March 31, 2007

	 	4.0 to 1.0
	Fiscal Quarter ending June 30, 2007

	 	4.0 to 1.0

2

 

	 	 	 
	Period	 	Ratio
	 

	Fiscal Quarter ending September 30, 2007

	 	4.0 to 1.0
	Fiscal Quarter ending December 31, 2007

	 	4.0 to 1.0

     1.2 Amendment Fee. Effective on the execution of this Amendment by the Companies, the
Financing Agreement is amended by adding the following new Section 8.20 to the Financing Agreement
as follows:

     ”8.20 To induce the Agent and the Lenders to enter into the Amendment No. 3 to
this Financing Agreement, the Companies shall pay to the Agent, for the benefit of
the Lenders, an Amendment Fee in the amount of $40,000, which shall be fully earned
and nonrefundable upon execution of the Amendment No. 3 to this Financing Agreement
by the Companies.”

ARTICLE II

MODIFICATION OF LOAN DOCUMENTS;

CONSENT BY GUARANTORS

     2.1 Modification of Loan Documents. The Financing Agreement and each of the other
Loan Documents are amended to provide that any reference therein to the Financing Agreement or any
of the other Loan Documents shall mean, unless otherwise specifically provided, the Financing
Agreement and the other Loan Documents as amended hereby, and as further amended, restated,
supplemented or modified from time to time.

     2.2 Consent by Guarantors. Each Guarantor hereby consents to, and agrees to be bound
by, (a) each of the amendments to the Financing Agreement and the other Loan Documents as set forth
herein, and (b) the other agreements set forth herein.

ARTICLE III

REPRESENTATIONS, WARRANTIES

AND ACKNOWLEDGMENTS

     Each Borrower and each Guarantor hereby represents and warrants to the Agent and the Lenders
that, as of the date hereof:

     3.1 Compliance with the Financing Agreement and Other Loan Documents. The Companies
are in compliance with all of the terms and provisions set forth in the Financing Agreement and in
the other Loan Documents to be observed or performed by any Company.

     3.2 Representations in Financing Agreement and other Loan Documents. Each Borrower
and each Guarantor represents and warrants that their respective representations and
warranties set forth in the Financing Agreement and the other Loan Documents to which such Borrower
or such Guarantor is a party are true and correct in all material respects except for changes

3

 

in the nature of such Borrower’s or such Guarantor’s business or operations which have occurred after
the Closing Date so long as the Agent or the Required Lenders as required by the Financing
Agreement has or have consented to such changes, or such changes are not prohibited by the terms of
the Financing Agreement.

     3.3 No Default or Event of Default. No Default or Event of Default exists.

     3.4 Outstanding Obligations. Each Company hereby acknowledges and agrees that, as of
the close of business on September 20, 2005, the principal balance of the Obligations outstanding
under the Financing Agreement is in the sum of $25,391,203.29, consisting of unpaid Revolving Loans
in the amount of $8,721,295.92, an unpaid balance on the Term Loan in the amount of $5,236,364.00,
and $11,433,543.37 in Letter of Credit Obligations and Letter of Credit Guaranties are outstanding,
and that all of such Obligations outstanding are owed to the Agent and the Lenders without any
offset, deduction, defense or counterclaim of any nature.

ARTICLE IV

GENERAL

     4.1 Full Force and Effect. As expressly amended hereby, the Financing Agreement shall
continue in full force and effect in accordance with the provisions thereof. As used in the
Financing Agreement, “hereinafter”, “hereto”, “hereof” or words of similar import, shall, unless
the context otherwise requires, mean the Financing Agreement as amended by this Amendment.

     4.2 Applicable Law. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AMENDMENT
AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NORTH CAROLINA.

     4.3 Counterparts. This Amendment may be executed in one or more counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute but one
and the same instrument.

     4.4 Expenses. The Borrowers shall reimburse the Agent and the Lenders for all
reasonable legal fees and expenses, and other fees and expenses incurred by the Agent and the
Lenders in connection with the preparation, negotiation, execution and delivery of this Amendment
and all other agreements and documents or contemplated hereby.

     4.5 Headings. The headings in this Amendment are for the purpose of reference only
and shall not affect the construction of this Amendment.

     4.6 Waiver of Jury Trial. TO THE FULLEST EXTENT PROVIDED BY APPLICABLE LAW,
EACH COMPANY, THE AGENT AND EACH LENDER EACH HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING ARISING OUT OF THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED
THEREUNDER. EACH COMPANY HEREBY IRREVOCABLY

4

 

WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO
SERVICE OF PROCESS BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED. IN NO EVENT WILL THE
AGENT OR ANY LENDER BE LIABLE FOR LOST PROFITS OR OTHER SPECIAL OR CONSEQUENTIAL DAMAGES.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
UNDER SEAL on the date first above written.

	 	 	 	 	 	 	 
	 

	 	AIRCRAFT INTERIOR DESIGN, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	BRICE MANUFACTURING COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	TIMCO AVIATION SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	TIMCO ENGINE CENTER, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	TIMCO ENGINEERED SYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 

5

 

	 	 	 	 	 	 	 
	 

	 	TRIAD INTERNATIONAL MAINTENANCE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	AVIATION SALES DISTRIBUTION SERVICES COMPANY
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	AVIATION SALES LEASING COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	AVIATION SALES PROPERTY MANAGEMENT CORP.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	AVS/CAI, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	AVS/M-1, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 

6

 

	 	 	 	 	 	 	 
	 

	 	AVS/M-2, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	AVS/M-3, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	AVSRE, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	Aviation Sales Property Management Corp.,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	HYDROSCIENCE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	TMAS/ASI, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	WHITEHALL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President, Treasurer	 	 

7

 

	 	 	 	 	 	 	 
	 

	 	THE CIT GROUP/BUSINESS CREDIT, INC.,

     as Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kenneth B. Butler	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	THE CIT GROUP/BUSINESS CREDIT, INC.,

     as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kenneth B. Butler	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	WELLS FARGO FOOTHILL, LLC, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Dennis King	 	(SEAL)
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title: Vice President	 	 

8Ex-10.3

 

Exhibit 10.3

FIRST AMENDMENT TO

AMENDED AND RESTATED FINANCING AGREEMENT

September 28, 2005

     THIS FIRST AMENDMENT TO AMENDED AND RESTATED FINANCING AGREEMENT (this “First Amendment”), is
made to the Amended and Restated Loan and Security Agreement (the “Financing Agreement”) dated as
of April 8, 2005 entered into by and between:

     MONROE CAPITAL ADVISORS LLC, a Delaware limited liability company, with offices located at
Sears Tower, 233 South Wacker Drive, Suite 5210, Chicago, Illinois 60606 (hereinafter, the
"Lender”),

     AIRCRAFT INTERIOR DESIGN, INC., a Florida corporation (“AID”), BRICE MANUFACTURING COMPANY,
INC., a California corporation (“Brice”), TIMCO AVIATION SERVICES, INC., a Delaware corporation
(“Parent”), TIMCO ENGINE CENTER, INC., a Delaware corporation (“Engine”), TIMCO ENGINEERED SYSTEMS,
INC., a Delaware corporation (“Engineered Systems”), and TRIAD INTERNATIONAL MAINTENANCE
CORPORATION, a Delaware corporation (“TIMCO”; AID, Brice, Parent, Engine, Engineered Systems and
TIMCO being collectively called the “Borrowers” and individually, a “Borrower”), the payment and
performance of which Term Loans are guaranteed by AVIATION SALES DISTRIBUTION SERVICES COMPANY, a
Delaware corporation (“Distribution Services”), AVIATION SALES LEASING COMPANY, a Delaware
corporation (“Leasing”), AVIATION SALES PROPERTY MANAGEMENT CORP., a Delaware corporation
(“Property Management”), AVS/CAI, INC., a Florida corporation (“AVS/CAI”), AVS/M-1, INC., a
Delaware corporation (“AVS/M-1”), AVS/M-2, INC., a Delaware corporation (“AVS/M-2”), AVS/M-3, INC.,
an Arizona corporation (“AVS/M-3”), AVSRE, L.P., a Delaware limited partnership (“AVSRE”),
HYDROSCIENCE, INC., a Texas corporation (“Hydroscience”), TMAS/ASI, INC., an Arkansas corporation
(“TMAS/ASI”), and WHITEHALL CORPORATION, a Delaware corporation (“Whitehall”; Distribution
Services, Leasing, Property Management, AVS/CAI, AVS/M-1, AVS/M-2, AVS/M-3, AVSRE, Hydroscience,
TMAS/ASI and Whitehall being collectively called the “Guarantors” and, individually, a “Guarantor”;
and the Borrowers and the Guarantors being collectively called the “Companies” and, individually, a
"Company”),

in consideration of the mutual covenants contained herein and benefits to be derived herefrom,

BACKGROUND:

     On or about April 8, 2005, the Lender and the Companies entered into the Financing Agreement.
At this time, the Lender and the Companies desire to amend the Financing Agreement in certain
respects.

     SECTION 1      AGREEMENT TO AMEND

Subject to the satisfaction of the Conditions to Effectiveness below, the Financing Agreement shall
be amended as follows:

     1.1 Section 7.9(b)(i) shall be deleted in its entirety and the following shall be substituted
therefor:

	 	 	"(i) The maximum aggregate amount of Senior Secured Debt which can be outstanding at any
time shall not exceed an amount (the “Senior Secured Debt Cap”) equal to the result of (i)
TTM EBITDA multiplied by (ii) 3.60, except that for the months of September 2005, and
October 2005, the Senior Secured Debt Cap shall be equal to (x) TTM EBITDA multiplied by (y)
4.30;”

     1.2 Sections 7.10 (b) and 7.10 (c) shall be deleted in their entirety and following shall be
substituted therefor:

 

 

	 	 	“(b) Maintain a Fixed Charge Coverage Ratio of not less than the ratio set forth below as of
the end of the applicable period:

	 	 	 	 	 	 
	 
	 	Period	 	 	Ratio	 
	 	Fiscal Quarter ending March 31, 2005

	 	 	1.25:1.00	 
	 	Fiscal Quarter ending June 30, 2005

	 	 	1.25:1.00	 
	 	Fiscal Quarter ending September 30, 2005

	 	 	1.25:1.00	 
	 	Fiscal Quarter ending December 31, 2005

	 	 	1.10:1.00	 
	 	 
	 	 	 	 
	 	Fiscal Quarter ending March 31, 2006

	 	 	1.20:1.00	 
	 	Fiscal Quarter ending June 30, 2006

	 	 	1.20:1.00	 
	 	Fiscal Quarter ending September 30, 2006

	 	 	1.35:1.00	 
	 	Fiscal Quarter ending December 31, 2006

	 	 	1.35:1.00	 
	 	 
	 	 	 	 
	 	Fiscal Quarter ending March 31, 2007

	 	 	1.40:1.00	 
	 	Fiscal Quarter ending June 30, 2007

	 	 	1.40:1.00	 
	 	Fiscal Quarter ending September 30, 2007

	 	 	1.40:1.00	 
	 	Fiscal Quarter ending December 31, 2007

	 	 	1.40:1.00	 
	 

	 	 	(c) Maintain a ratio of (i) Senior Secured Debt plus Capital Lease Obligations as of
such date to (ii) EBITDA for the four (4) Fiscal Quarters then ending, of not more than the
ratio set forth below as of the end of the applicable period:

	 	 	 	 	 	 	 	 
	 
	 	Period	 	 	 	Ratio	 
	 	Fiscal Quarter ending March 31, 2005

	 	 	 	3.90:1.00	 	 
	 	Fiscal Quarter ending June 30, 2005

	 	 	 	3.90.1.00	 	 
	 	Fiscal Quarter ending September 30, 2005

	 	 	 	4.30:1.00	 	 
	 	Fiscal Quarter ending December 31, 2005

	 	 	 	3.90:1.00	 	 
	 	Fiscal Quarter ending March 31, 2006 and each June 30, September
30, December 31, and March 31 thereafter

	 	 	 	3.70:1.00	 	 
	 

-2-

 

     Section 2      CONDITIONS TO EFFECTIVENESS OF THIS FIRST AMENDMENT.

     This First Amendment shall be effective only if each of the following conditions is satisfied:

     2.1 An original counterpart of this First Amendment is fully executed by the Companies and
delivered to the Lender.

     2.2 The Lender has received an amendment fee in the amount of $50,000.00.

     2.3 The Companies have reimbursed the Lender for all costs, expenses, and attorneys’ fees
incurred by the Lender in connection with the preparation, negotiation, and execution of this First
Amendment.

     2.4 The Lender shall have received and found satisfactory a fully executed copy of an
amendment to the CIT Financing Agreement.

     Section 3      MISCELLANEOUS.

     3.1 The Companies hereby ratify, confirm, and reaffirm all and singular the terms and
conditions of the Financing Agreement and each of the other Loan Documents. The Companies further
acknowledge and agree that, except as specifically modified in this First Amendment, all terms and
conditions of the Loan Documents shall remain in full force and effect.

     3.2 All representations and warranties of the Companies in the Financing Agreement are true,
accurate, and complete in all material respects as of this date.

     3.3 The Companies acknowledge and agree that there is no basis nor set of facts on which any
amount (or any portion thereof) owed by the Companies under any Loan Document could be reduced,
offset, waived, or forgiven, by rescission or otherwise; nor is there any claim, counterclaim,
offset, or defense (or other right, remedy, or basis having a similar effect) available to the
Companies with regard thereto; nor is there any basis on which the terms and conditions of any of
the Obligations could be claimed to be other than as stated on the written instruments which
evidence such Obligations.

     3.4 The Companies, by executing this First Amendment where indicated below, hereby acknowledge
and agree that none have any offsets, defenses, claims, or counterclaims against the Lender or the
Lender’s officers, directors, employees, attorneys, representatives, parent, affiliates,
predecessors, successors, or assigns with respect to the Obligations or otherwise, and that if any
Company now has, or ever did have, any offsets, defenses, claims, or counterclaims against the
Lender or the Lender’s officers, directors, employees, attorneys, representatives, parent,
affiliates, predecessors, successors, or assigns, whether known or unknown, at law or in equity,
from the beginning of the world through this date and through the time of execution of this First
Amendment, all of them are hereby expressly WAIVED, and the Companies hereby RELEASE the Lender and
the Lender’s officers, directors, employees, attorneys, representatives, parent, affiliates,
predecessors, successors, and assigns from any liability therefor.

     3.5 The Companies shall, from and after the execution of this First Amendment, execute and
deliver to the Lender whatever additional documents, instruments, and agreements that the Lender
may

-3-

 

require in order to vest or perfect the Loan Documents and the Collateral granted therein more
securely in the Lender and to otherwise give effect to the terms and conditions of this First
Amendment.

     3.6 The Companies shall pay on demand all reasonable costs and expenses of the Lender,
including without limitation, reasonable attorneys’ fees heretofore or hereafter incurred by the
Lender in connection with the loan arrangement maintained with the Companies, the Financing
Agreement, and any of the other Loan Documents.

     3.7 In connection with the interpretation of this First Amendment and all other documents,
instruments, and agreements incidental hereto:

     (a) Terms used in this First Amendment which are defined in the Financing Agreement are
used as so defined.

     (b) All rights and obligations hereunder and thereunder, including matters of
construction, validity, and performance, shall be governed by and construed in accordance
with the law of the State of Illinois.

     (c) The captions of this First Amendment are for convenience purposes only, and shall
not be used in construing the intent of the Lender and the Companies under this First
Amendment.

     (d) Nothing contained in this First Amendment shall constitute a waiver of any Event of
Default under the Financing Agreement or any of the other Loan Documents, whether now
existing or hereafter arising.

     (e) The Lender and the Companies have prepared this First Amendment with the aid and
assistance of their respective counsel. Accordingly, this First Amendment shall be deemed
to have been drafted by the Lender and the Companies and shall not be construed against
either the Lender or the Companies.

     (f) Any determination that any provision or application of this First Amendment is
invalid, illegal, or unenforceable in any respect, or in any instance, shall not affect the
validity, legality, or enforceability of any such provision in any other instance, or the
validity, legality, or enforceability of any other provision of this First Amendment.

     3.8 Each Company warrants and represents to the Lender that it:

     (a) Has read and understands all of the terms and conditions of this First Amendment;

     (b) Intends to be bound by the terms and conditions of this First Amendment;

     (c) Is executing this First Amendment freely and voluntarily, without duress, after
consultation with independent counsel of its own selection.

     3.9 This First Amendment shall be binding upon the Companies and the Companies’ employees,
representatives, successors, and assigns, and shall inure to the benefit of the Lender and the
Lender’s successors and assigns. This First Amendment and all documents, instruments, and
agreements executed in connection herewith incorporate all of the discussions and negotiations
between the Borrower and the Lender, either expressed or implied, concerning the matters included
herein and in such other

-4-

 

documents, instruments, and agreements, any statute, custom, or usage to the contrary
notwithstanding. No such discussions or negotiations shall limit, modify, or otherwise affect the
provisions hereof. No modification, amendment, or waiver of any provision of this First Amendment,
or any provision of any other document, instrument, or agreement between the Companies and the
Lender shall be effective unless executed in writing by the party to be charged with such
modification, amendment, or waiver, and if such party be the Lender, then by a duly authorized
officer thereof.

     3.10 This First Amendment may be executed in separate counterparts, each of which when so
executed and delivered shall be an original, and both of which together shall constitute one
instrument.

[Signature Pages Follow}

-5-

 

     IN WITNESS WHEREOF, the parties have hereunto caused this First Amendment to be executed as of
the date first above written.

	 	 	 	 	 
	 

	 	BORROWERS:
	 
	 	 	 	 
	 

	 	AIRCRAFT INTERIOR DESIGN, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	BRICE MANUFACTURING COMPANY, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	TIMCO AVIATION SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 

	 

	 	TIMCO ENGINE CENTER, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	TIMCO ENGINEERED SYSTEMS, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer

S/1

 

	 	 	 	 	 
	 

	 	TRIAD INTERNATIONAL MAINTENANCE CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	AGREED AND CONSENTED TO:
	 
	 	 	 	 
	 

	 	GUARANTORS:
	 ’
	 	 	 	 
	 

	 	AVIATION SALES DISTRIBUTION SERVICES COMPANY
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	AVIATION SALES LEASING COMPANY
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	AVIATION SALES PROPERTY MANAGEMENT CORP.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	AVS/CAI, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer

S/2

 

	 	 	 	 	 
	 

	 	AVS/M-1, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	AVS/M-2, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	AVS/M-3, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer

	 	 	 	 	 	 	 
	 

	 	AVSRE, L.P.
	 

	 

	 	By:
	 	Aviation Sales Property Management Corp., its
general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Kevin Carter
	 

	 	 	 	 	 	Title: Vice President, Treasurer

	 	 	 	 	 
	 

	 	HYDROSCIENCE, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer

S/3

 

	 	 	 	 	 
	 

	 	TMAS/ASI, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	WHITEHALL CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kevin Carter
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin Carter
	 

	 	 	 	Title: Vice President, Treasurer
	 
	 	 	 	 
	 

	 	LENDER:
	 
	 	 	 	 
	 

	 	MONROE CAPITAL ADVISORS LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Philip Isom
	 

	 	 	 	 
	 

	 	 	 	Name: Philip Isom
	 

	 	 	 	Title: Executive Vice President

S/4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]