Document:

Exhibit

Exhibit 10.1
EXECUTION VERSION

THIRD AMENDMENT TO CREDIT AGREEMENT 
THIRD AMENDMENT TO CREDIT AGREEMENT, dated as of March 24, 2016 (this “Amendment”), among WESCO AIRCRAFT HOLDINGS, INC., a Delaware corporation (“Holdings”), WESCO AIRCRAFT HARDWARE CORP., a California corporation (the “Borrower”), the Subsidiary Guarantors, BARCLAYS BANK PLC, as Administrative Agent (as defined below), Collateral Agent (as defined below) and Swingline Lender, and the Lenders party hereto.

W I T N E S S E T H

WHEREAS, Holdings, the Borrower, the Lenders from time to time party thereto and BARCLAYS BANK PLC, as Administrative Agent (in such capacity, the “Administrative Agent”), Collateral Agent (in such capacity, the “Collateral Agent”, and collectively with the Administrative Agent, in such capacities, the “Agent”), Issuing Lender and Swingline Lender, are parties to a Credit Agreement, dated as of December 7, 2012 (as amended by that certain First Amendment to Credit Agreement dated as of February 28, 2014, that certain Second Amendment to Credit Agreement and Guarantee and Collateral Agreement dated as of September 2, 2014 and as further amended, supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”); 

WHEREAS, the Borrower has requested that the Required Lenders, the Required Covenant Lenders and the Swingline Lender, pursuant to Section 10.1 of the Existing Credit Agreement, amend certain provisions of the Existing Credit Agreement (as so amended, the “Amended Credit Agreement”) to (i) reduce the maximum amount permitted to be incurred under a Cash-Capped Incremental Facility pursuant to Section 2.25(a)(i) of the Existing Credit Agreement, (ii) amend the Consolidated Total Leverage Ratio levels in the financial covenant set forth in Section 7.1(a) of the Existing Credit Agreement and (iii) make certain other amendments as set forth below;

WHEREAS, Barclays Bank PLC is the sole lead arranger, sole bookrunner and sole syndication agent (in such capacity, the “Third Amendment Lead Arranger”) for this Third Amendment; and

WHEREAS, Holdings, the Borrower, the Required Lenders, the Required Covenant Lenders, the Swingline Lender and the Agent wish to amend the Existing Credit Agreement as set forth herein;

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION ONE – DEFINED TERMS.  Capitalized terms used herein (including in the foregoing recitals hereto) but not otherwise defined herein shall have the meanings assigned 

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thereto in the Amended Credit Agreement.  The provisions of Section 1.2 of the Amended Credit Agreement are hereby incorporated by reference herein, mutatis mutandis.

SECTION TWO – EXISTING CREDIT AGREEMENT AMENDMENTS.  

Effective as of the Third Amendment Effective Date:

(a)Section 1.1 of the Existing Credit Agreement is hereby amended by inserting therein the following defined terms in the appropriate alphabetical order:
“Bail-In Action”: the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution. 
“Bail-In Legislation”: with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.
“EEA Financial Institution”: (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. 
“EEA Member Country”: any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority”: any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“EU Bail-In Legislation Schedule”: the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

“Third Amendment”: that certain Third Amendment to Credit Agreement dated as of March 24, 2016.

“Third Amendment Effective Date”: as defined in the Third Amendment.

“Write-Down and Conversion Powers”: with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, 

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which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

(b)The definition of “Defaulting Lender” within Section 1.1 of the Existing Credit Agreement is hereby amended by (i) deleting the word “or” at the end of subclause (d)(ii) and (ii) adding “or (iii) become the subject of a Bail-In-Action” immediately before the semicolon within clause (d).

(c)Section 2.7(f) of the Existing Credit Agreement is hereby amended by replacing the phrase “No reallocation hereunder” with the phrase “Subject to Section 10.23, no reallocation hereunder” in the second sentence thereof.

(d)Section 2.25(a)(i) of the Existing Credit Agreement is hereby amended by replacing the reference to “$150,000,000” with “$100,000,000”.

(e)Section 7.1(a) of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

“Consolidated Total Leverage Ratio.  Permit the Consolidated Total Leverage Ratio of Holdings as at the last day of any period of four consecutive fiscal quarters of Holdings ending during any period set forth below to exceed the ratio set forth below opposite such period:
	
		
	Period
	Consolidated Total 
Leverage Ratio

	June 30, 2014
	5.25 : 1.00

	September 30, 2014
	5.25 : 1.00

	December 31, 2014
	5.00 : 1.00

	March 31, 2015
	5.00 : 1.00

	June 30, 2015
	4.75 : 1.00

	September 30, 2015
	4.75 : 1.00

	December 31, 2015
	4.50 : 1.00

	March 31, 2016
	4.50 : 1.00

	June 30, 2016
	4.50 : 1.00

	September 30, 2016
	4.50 : 1.00

	December 31, 2016
	4.25 : 1.00

	March 31, 2017
	4.00 : 1.00

	June 30, 2017
	3.75 : 1.00

	September 30, 2017 and thereafter
	3.75 : 1.00”

		
	(f)
	The Existing Credit Agreement is hereby amended by inserting the following new Section 10.23:

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“10.23         Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Secured Party that is an EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
		
	(a)
	the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Secured Party that is an EEA Financial Institution; and

		
	(b)
	the effects of any Bail-in Action on any such liability, including, if applicable:

		
	(i)
	a reduction in full or in part or cancellation of any such liability;

		
	(ii)
	a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

		
	(iii)
	the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority .”

SECTION THREE – CONDITIONS TO EFFECTIVENESS.  This Amendment and the amendments set forth in Section Two shall become effective on the date (the “Third Amendment Effective Date”) when each of the following conditions shall have been satisfied:

(a)Execution of this Amendment.  The Loan Parties and Lenders constituting the Required Lenders, the Required Covenant Lenders and the Swingline Lender shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile or other electronic transmission) the same to the Administrative Agent (or its counsel);

(b)Amendment Fee. The Borrower shall have paid, or caused to be paid, to the Administrative Agent, for the account of each Revolving Lender and each Tranche A Term Lender that consents to this Amendment at or prior to 2:00 p.m. New York City time on March 24, 2016 an amendment fee (the “Amendment Fee”) for each such Lender in an amount equal to 0.25% of the sum of (1) the outstanding principal amount of such Lender’s Tranche A Term Loans immediately prior to the occurrence of the Third Amendment Effective Date plus (2) the amount of such Lender’s Revolving Commitment immediately prior to the occurrence of the Third Amendment Effective Date. The Amendment Fee shall be payable in immediately available funds on the Third Amendment Effective Date.  Once paid, the Amendment Fee shall not be refundable.

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(c)Other Fees and Expenses. The Borrower shall have paid, or caused to be paid, to the Administrative Agent and the Third Amendment Lead Arranger, respectively, all fees and other amounts due and payable under or in connection with this Amendment, and all reasonable and documented out-of-pocket costs and expenses incurred in connection with this Amendment, including, without limitation, the reasonable and documented fees and disbursements and other charges of Milbank, Tweed, Hadley & McCloy LLP, counsel to the Administrative Agent and the Third Amendment Lead Arranger; and

The Administrative Agent shall notify the parties hereto of the Third Amendment Effective Date and such notice shall be conclusive and binding.  Notwithstanding the foregoing, this Amendment shall not become effective unless each of the foregoing conditions is satisfied at or prior to 11:59 p.m. New York City time on March 24, 2016.

SECTION FOUR – REPRESENTATIONS AND WARRANTIES; NO DEFAULTS.  In order to induce the Lenders to enter into this Amendment, each of the Loan Parties represents and warrants, on the Third Amendment Effective Date, to each of the Lenders and the Administrative Agent that:

(a)this Amendment and the Amended Credit Agreement each constitutes a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law) and the implied covenants of good faith and fair dealing;

(b)all of the representations and warranties contained in Section 4 of the Amended Credit Agreement and in the other Loan Documents are true and correct in all material respects on the Third Amendment Effective Date as if made on and as of such date (unless such representation or warranty relates to a specific date, in which case such representation or warranty was true and correct in all material respects as of such specific date; provided, that any representation and warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on such respective dates); and

(c)no Default or Event of Default exists as of the Third Amendment Effective Date immediately prior to and after giving effect to this Amendment.

SECTION FIVE – SECURITY.  The Loan Parties acknowledge that notwithstanding the effectiveness of this Amendment, (a) the Guarantee and Collateral Agreement shall continue to be in full force and effect, (b) the Guarantor Obligations of each Guarantor are not impaired or affected and (c) all guarantees made by the Loan Parties pursuant to the Guarantee and Collateral Agreement and all Liens granted by the Loan Parties as security for the Borrower Obligations and the Guarantor Obligations pursuant to the Guarantee and Collateral Agreement continue in full force 

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and effect; and, further, confirm and ratify their respective obligations under each of the Loan Documents executed by the Loan Parties, as amended hereby.

SECTION SIX – SEVERABILITY.  Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

SECTION SEVEN – CONTINUING EFFECT; NO OTHER WAIVERS OR AMENDMENTS.  Except as expressly set forth herein, this Amendment shall not (i) constitute a substitution or novation, or a payment and reborrowing, or a termination, of the Obligations outstanding under the Amended Credit Agreement or instruments guaranteeing or securing the same, which shall remain in full force and effect, except as modified hereby or (ii) by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the Agents, the Loan Parties under the Amended Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Amended Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Amended Credit Agreement or any other Loan Document in similar or different circumstances.  After the Third Amendment Effective Date, any reference in any Loan Document to the “Credit Agreement” shall mean the Amended Credit Agreement.  This Amendment shall constitute a Loan Document for all purposes of the Amended Credit Agreement and the other Loan Documents.  

SECTION EIGHT – COUNTERPARTS.  This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Amendment by facsimile or electronic (i.e. “pdf”) transmission shall be effective as delivery of a manually executed counterpart hereof.

SECTION NINE – GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  The provisions of Sections 10.12 and 10.18 of the Amended Credit Agreement are hereby incorporated by reference herein, mutatis mutandis.

SECTION TEN – SIGNIFICANT MODIFICATION.  For purposes of determining withholding Taxes imposed under FATCA, from and after the Third Amendment Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Amended Credit Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

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[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their authorized officers as of the day and year first above written. 
	
		
	 
	 

WESCO AIRCRAFT HARDWARE CORP.

By:    /s/Richard J. Weller     
Name:    Richard J. Weller 
Title:    EVP & Chief Financial Officer

WESCO AIRCRAFT HOLDINGS, INC.

By:    /s/Richard J. Weller     
Name:    Richard J. Weller 
Title:    EVP & Chief Financial Officer

INTERFAST USA HOLDINGS INC.

By:    /s/Richard J. Weller     
Name:    Richard J. Weller 
Title:    Treasurer 

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HAAS GROUP, LLC

By:    /s/Richard J. Weller     
Name:    Richard J. Weller 
Title:    Treasurer

HAAS HOLDINGS, LLC

By:    /s/Richard J. Weller     
Name:    Richard J. Weller 
Title:    Treasurer

HAAS GROUP INTERNATIONAL, LLC

By:    /s/Richard J. Weller     
Name:    Richard J. Weller 
Title:    Treasurer
 

NETMRO, LLC

By:    /s/Richard J. Weller     
Name:    Richard J. Weller 
Title:    Treasurer

HAAS TCM OF ISRAEL INC.

By:    /s/Richard J. Weller     
Name:    Richard J. Weller 
Title:    Treasurer

BARCLAYS BANK PLC, as Administrative Agent, Collateral Agent and Swingline Lender

By:    /s/Craig Malloy     
Name:    Craig Malloy 
Title:    Director

E. SUN COMMERCIAL BANK, LTD.,
LOS ANGELES BRANCH, as a Lender

By:    /s/Edward Chen     
Name:    Edward Chen 
Title:    Senior VP & General Manager

Morgan Stanley Bank, N.A.
By:    /s/Dmitriy Barskiy     
Name:    Dmitriy Barskiy 
Title:    Authorized Signatory

SIEMENS FINANCIAL SERVICES, INC
By:    /s/Michael L. Zion     
Name:    Michael L. Zion 
Title:    Vice President Siemens Financial Services, Inc.
SIEMENS FINANCIAL SERVICES, INC
By:    /s/Philip Marrone     
Name:    Philip Marrone 
Title:    Vice President
Hua Nan Commercial Bank, Ltd., Los Angeles Branch
By:    /s/I-HUI LIAO     
Name:    I-HUI LIAO 
Title:    Deputy General Manager

AZB FUNDING
By:    /s/Kei Kajimura     
Name:    Kei Kajimura 
Title:    Authorized Signatory

City National Bank
By:    /s/Jeanine Smith     
Name:    Jeanine Smith 
Title:    Senior Vice President

STIFEL BANK & TRUST
By:    /s/Benjamin L. Dodd     
Name:    Benjamin L. Dodd 
Title:    Senior Vice President

MANUFACTURERS BANK
By:    /s/Sandy Lee     
Name:    Sandy Lee 
Title:    Vice President

Citizens Bank & Trust Company
By:    /s/Kenneth Roberson     
Name:    Kenneth Roberson 
Title:    Senior Vice President

Citizens Bank & Trust Company
By:    /s/Kenneth Roberson     
Name:    Kenneth Roberson 
Title:    Senior Vice President

Citizens Bank & Trust Company
By:    /s/Kenneth Roberson     
Name:    Kenneth Roberson 
Title:    Senior Vice President

Citizens Bank & Trust Company
By:    /s/Kenneth Roberson     
Name:    Kenneth Roberson 
Title:    Senior Vice President

Taiwan Cooperative Bank, Los Angeles Branch
By:    /s/Ming-Chih Chen     
Name:    Ming-Chih Chen 
Title:    VP & General Manager

CATHAY BANK
By:    /s/Nancy A. Moore     
Name:    Nancy A. Moore 
Title:    Senior Vice President

Branch Banking and Trust Company
By:    /s/Trevor Williams     
Name:    Trevor Williams 
Title:    Banking Officer

Black Diamond CLO 2005-2 Ltd.
BY:  Black Diamond CLO 2005-2 Adviser, L.L.C. 
As its Collateral Manager
By:    /s/Stephen H. Deckoff     
Name    Stephen H. Deckoff 
Title:    Managing Principal

Kingsland IV, Ltd.
BY:  Kingsland Capital Management, LLC, as Manager
By:    /s/Katherine Kim     
Name:    Katherine Kim 
Title:    Authorized Signatory

Kingsland V, Ltd.
BY:  Kingsland Capital Management, LLC, as Manager
By:    /s/Katherine Kim     
Name:    Katherine Kim 
Title:    Authorized Signatory

Ares XXXIV CLO Ltd.
By:  Ares CLO Management LLC, its collateral manager
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
:    

ARES ENHANCED LOAN INVESTMENT STRATEGY IR LTD.
BY:  ARES ENHANCED LOAN MANAGEMENT IR, L.P., 
AS PORTFOLIO MANAGER
BY:  ARES ENHANCED LOAN IR GP, LLC, 
ITS GENERAL PARTNER
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES IIIR/IVR CLO LTD.
BY:  ARES CLO MANAGEMENT IIIR/IVR, L.P., 
ITS ASSET MANAGER
BY:  ARES CLO GP IIIR/IVR, LLC, 
ITS GENERAL PARTNER
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
:    

ARES XI CLO LTD.
BY:  ARES CLO MANAGEMENT XI, L.P., 
ITS ASSET MANAGER
BY:  ARES CLO GP XI, LLC, 
ITS GENERAL PARTNER
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES XII CLO LTD.
BY:  ARES CLO MANAGEMENT XII, L.P., 
ITS ASSET MANAGER
BY:  ARES CLO GP XII, LLC, 
ITS GENERAL PARTNER
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
:    

ARES XXII CLO LTD.
BY:  ARES CLO MANAGEMENT XXII, L.P., 
ITS ASSET MANAGER
BY:  ARES CLO GP XXII, LLC, 
ITS GENERAL PARTNER
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES XXIII CLO LTD.
BY:  ARES CLO MANAGEMENT XXIII, L.P., 
ITS ASSET MANAGER
BY:  ARES CLO GP XXIII, LLC, 
ITS GENERAL PARTNER
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES XXIV CLO LTD.
BY:  ARES CLO MANAGEMENT XXIV, L.P., 
ITS ASSET MANAGER
BY:  ARES CLO GP XXIV, LLC, 
ITS GENERAL PARTNER
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES XXIX CLO LTD.
By:  Ares CLO Management XXIX, L.P., 
its Asset Manager
By:  Ares CLO GP XXIX, LLC, 
its General Partner
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES XXV CLO LTD.
By:  Ares CLO Management XXV, L.P., 
its Asset Manager
By:  Ares CLO GP XXV, LLC, 
its General Partner
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES XXVI CLO LTD.
By:  Ares CLO Management XXVI, L.P., 
its Collateral Manager
By:  Ares CLO GP XXVI, LLC, 
its General Partner
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES XXVII CLO LTD.
By:  Ares CLO Management XXVII, L.P., 
its Asset Manager
By:  Ares CLO GP XXVII, LLC, 
its General Partner
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

ARES XXVIII CLO LTD.
By:  Ares CLO Management XXVIII, L.P., 
its Asset Manager
By:  Ares CLO GP XXVIII, LLC, 
its General Partner
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory

ARES XXX CLO LTD.
By:  Ares CLO Management XXX, L.P., 
its Asset Manager
By:  Ares CLO GP XXX, LLC, 
its General Partner
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory

Ares XXXI CLO Ltd.
By:  Ares CLO Management XXXI, L.P., 
its Portfolio Manager
By:  Ares Management LLC, 
its General Partner
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
:    

Ares XXXII CLO Ltd.
By:  Ares CLO Management XXXII, L.P., 
its Asset Manager
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

Ares XXXIII CLO Ltd.
By:  Ares CLO Management XXXIII, L.P., 
its Asset Manager
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory

Ares XXXV CLO Ltd.
By:  Ares CLO Management LLC, 
its asset manager
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory

Ares XXXVII CLO Ltd.
By:  Ares CLO Management LLC, 
its asset manager
By:    /s/Seth Brufsky     
Name:    Seth Brufsky 
Title:    Authorized Signatory
    

Dryden XI – Leveraged Loan CDO 2006, as Lender
By:  PGIM, Inc., as Collateral Manager
By:    /s/Joseph Lemanowicz     
Name:    Joseph Lemanowicz 
Title:    Vice President

Dryden XVI – Leveraged Loan CDO 2006, as Lender
By:  PGIM, Inc., as Collateral Manager
By:    /s/Joseph Lemanowicz     
Name:    Joseph Lemanowicz 
Title:    Vice President

Dryden XVIII – Leveraged Loan CDO 2007, as Lender
By:  PGIM, Inc., as Collateral Manager
By:    /s/Joseph Lemanowicz     
Name:    Joseph Lemanowicz 
Title:    Vice President

North Dakota State Investment Board, as Lender
By:  PGIM, Inc., as Investment Advisor
By:    /s/Joseph Lemanowicz     
Name:    Joseph Lemanowicz 
Title:    Vice President

North Dakota State Investment Board, as Lender
By:  PGIM, Inc., as Investment Manager
By:    /s/Joseph Lemanowicz     
Name:    Joseph Lemanowicz 
Title:    Vice President

Prudential Investment Portfolios 9 – Prudential Absolute Return Bond Fund, 
as Lender
By:  PGIM, Inc., as Investment Advisor
By:    /s/Joseph Lemanowicz     
Name:    Joseph Lemanowicz 
Title:    Vice President

PNC Bank, National Association
By:    /s/Mahir J. Desai     
Name:    Mahir J. Desai 
Title:    Assistant Vice President

COMPASS BANK, as a Lender
By:    /s/James Ligman     
Name:    James Ligman 
Title:    Senior Vice President

JMP CREDIT ADVISORS CLO I LTD.
By:  Cratos CDO Management, LLC 
As Attorney-in-Fact
By:  JMP Credit Advisors LLC 
Its Manager
By:    /s/Christopher R. Bellamy     
Name:    Christopher R. Bellamy 
Title:    Director

BANK OF AMERICA, N.A.
By:    /s/Matt Powers     
Name:    Matt Powers 
Title:    Director

MUFG Union Bank, N.A. (f/k/a Union Bank, N.A.)
By:    /s/Eric George     
Name:    Eric George 
Title:    Director

Comerica Bank
By:    /s/Mark Skrzynski     
Name:    Mark Skrzynski 
Title:    Vice President

RAYMOND JAMES BANK, N.A.
By:    /s/Mike Pelletier     
Name:    Mike Pelletier 
Title:    Senior Vice President

KEYBANK NATIONAL ASSOCIATION
By:    /s/Marcel Fournier     
Name:    Marcel Fournier 
Title:    Vice President

Land Bank of Taiwan, New York Branch, 
as a Lender
By:    /s/Arthur Chen     
Name:    Arthur Chen 
Title:    General Manager

JPMORGAN CHASE BANK, N.A.
By:    /s/Ling Li     
Name:    Ling Li 
Title:    Executive Director

CIT BANK N.A.
By:    /s/Mary Ann Jones     
Name:    Mary Ann Jones 
Title:    Director

LCM IX Limited Partnership
By:  LCM Asset Management LLC 
As Collateral Manager
By:    /s/Marc Schluraff     
Name:    Marc Schluraff 
Title:    LCM Asset Management LLC

LCM X Limited Partnership
By:  LCM Asset Management LLC 
As Collateral Manager
By:    /s/Marc Schluraff     
Name:    Marc Schluraff 
Title:    LCM Asset Management LLC

ROYAL BANK OF CANADA
By:    /s/Sinan Tarlan     
Name:    Sinan Tarlan 
Title:    Authorized Signatory

BANK OF THE WEST
By:    /s/M. Scott Nicholson     
Name:    M. Scott Nicholson 
Title:    Vice President

Sumitomo Mitsui Banking Corporation
By:    /s/David Kee     
Name:    David Kee 
Title:    Managing Director

HSBC Bank USA, National Association 
By:    /s/ Steven F. Larsen     
Name:    Steven F. Larsen 
Title:    Vice President

9Exhibit

Exhibit 10.34

[Home Depot Letterhead]

October 16, 2014

Marc Powers

Dear Marc:

II am pleased to confirm The Home Depot, Inc.’s (the “Company”) offer and your acceptance in the position of Executive Vice President – U.S. Stores, effective November 1, 2014, reporting directly to me.  Your new annual base salary will be $650,000, payable in equal bi-weekly installments.  Your next salary review will be held in April of 2015, with salary reviews held annually thereafter.

In addition to your base salary, you will continue to be eligible to participate in the Management Incentive Plan (“MIP”) for officers, which provides an annual incentive target of up to 100% of your base salary.  MIP will be paid annually based on achievement of the established financial goals.  The incentive, if any, will be prorated based on the number of full months in your previous and new positions as well as the respective bonus targets for each position.  To be eligible for payment of any incentive, you must be employed on the day on which the incentive is paid.

The Home Depot has typically awarded an annual equity grant to Officers in March of each year under the Amended and Restated 2005 Omnibus Stock Incentive Plan.  Currently, equity awards for Officers in March 2015 are expected to consist of Restricted Stock, Stock Options, and Performance Shares.  Vesting and performance goals for these awards are established annually for each grant.  You will be eligible to receive the same types of equity awards as other Officers in the Company.  

At the next regularly scheduled quarterly meeting of the Leadership Development and Compensation Committee of The Home Depot, Inc. Board of Directors following the effective date of your new role and acceptance of this agreement, you will receive a grant under the Amended and Restated 2005 Omnibus Stock Incentive Plan (the “Omnibus Plan”) of the greatest number of whole shares of restricted common stock of The Home Depot, Inc. resulting from dividing $250,000 by the closing stock price on the grant date, with 50% of the grant vesting each on the 30th and 60 month anniversaries of the grant. Once these provisions lapse, the shares will be yours, free and clear of restrictions, subject to the applicable provisions of the Omnibus Plan and award document.  We anticipate you will also receive a grant of nonqualified stock options under the Omnibus Plan equal to the greatest number of whole shares of common stock of The Home Depot, Inc. resulting from dividing $250,000 by the grant date accounting cost of the stock options, with an exercise price equal to the closing stock price on the grant date.  Twenty-five percent of the stock options will become exercisable on the second, third, fourth and fifth anniversaries of the grant date. Expiration of all stock options will be the earlier of ten years from the grant date, employment termination, or any earlier time provided by your award document.

In addition to the above grants, you will continue to be eligible to participate in The Home Depot, Inc.’s Employee Stock Purchase Plan.  The plan affords you the opportunity to purchase The Home Depot, Inc. common stock at a 15% discount through payroll deductions.

Marc Powers                                       
October 16, 2014
Page 2

You will also continue to be eligible to participate in The Home Depot Deferred Compensation Plan for Officers. This plan affords you the opportunity to defer up to 50% of your base salary and 100% of your MIP payment into the plan. 

The terms of your annual base salary, the MIP and other benefits set forth herein are subject to future modification or termination at the Company’s discretion.  All compensation and benefits are subject to any required tax withholding.

You agree that you shall not, without the prior express written consent of the Executive Vice President – Human Resources, engage in or have any financial or other interests in, or render any service in any capacity to any competitor or supplier of the Company, or its parents, subsidiaries, affiliates, or related entities during the course of your employment with the Company. Notwithstanding the foregoing, you shall not be restricted from owning securities of corporations listed on a national securities exchange or regularly traded by national securities dealers, provided that such investment does not exceed 1% of the market value of the outstanding securities of such corporation.  The provisions of this paragraph shall apply to you and your immediate family.

You agree that you will not, directly or indirectly, use any Confidential Information on your own behalf or on behalf of any person or entity other than the Company, or reveal, divulge, or disclose any Confidential Information to any person or entity not expressly authorized by the Company to receive such Confidential Information, unless compelled by law and then only after written notice to Company’s Executive Vice President – Human Resources.  This obligation shall remain in effect, both during and after your employment, for as long as the information or materials in question retain their status as Confidential Information.  This letter is not intended to, and does not, alter either the Company’s rights or your obligations under any state or federal statutory or common law regarding trade secrets and unfair trade practices.  For purposes of this letter, “Confidential Information” means any and all data and information relating to the Company, its parents, subsidiaries, affiliates or related entities, or their activities, business, or clients that (i) is disclosed to you or of which you become aware as a consequence of your employment with the Company; (ii) has value to the Company; and (iii) is not generally known outside of the Company.  Confidential Information shall include, but is not limited to the following types of information regarding, related to, or concerning the Company: trade secrets (as defined by O.C.G.A. § 10-1-761); financial plans and data; management planning information; business plans; operational methods; market studies; marketing plans or strategies; pricing information; product development techniques or plans; customer files, data and financial information; data security information; details of customer or vendor contracts; current and anticipated customer requirements; past, current and planned research and development; computer aided systems, software, strategies and programs; business acquisition plans; management organization and related information (including, without limitation, data and other information concerning the compensation and benefits paid to officers, directors, employees and management); personnel and compensation policies; new personnel acquisition plans; and other similar information.

By accepting this offer, you acknowledge and agree that you, as a key executive of the Company, have received and will receive training and Confidential Information regarding, among other things, the Company’s various merchandising, operations, financial, and/or other business processes, and that you have been and will be provided and entrusted with access to the Company’s customer and employee relationships and goodwill.  You further acknowledge that such Confidential Information, including trade secrets and other business processes, are utilized by the Company throughout the entire United States and in other locations in which it conducts business.  You further acknowledge and agree that the Company’s Confidential Information, customer, vendor and employee relationships, and goodwill are valuable assets of the Company and are legitimate business interests that

Marc Powers                                       
October 16, 2014
Page 3

are properly subject to protection through the covenants contained in this letter.  Consequently, you agree that for a period of twenty-four (24) months subsequent to your termination of employment from the Company for any reason, you will not, without the prior written consent of the Executive Vice President – Human Resources, in the United States, Canada, Mexico, or any other country in which the Company is conducting or has conducted business during your employment, enter into or maintain an employment, contractual, or other business or professional  relationship, either directly or indirectly, to provide executive or managerial services of the type conducted, authorized, offered or provided by you for the Company to the following businesses that compete with the Company: Lowe’s Companies, Inc. (including, but not limited to, Eagle Hardware and Garden and Orchard Supply and Hardware Company); Sears Holding Corp.; Amazon.com; Menard, Inc.; Floor & Décor; Ace Hardware; True Value Company; Lumber Liquidators;  and Wal-Mart, and all of the subsidiaries, affiliates, assigns or successors in interest of each of these competing businesses.

In the event you wish to enter into any relationship or employment prior to the end of the above-referenced 24 month period which may be covered by the above non-compete provision, you agree to request and receive written permission from the Executive Vice President – Human Resources before entering any such relationship or employment.  The Company may approve or may not approve of the relationship or employment in its sole and absolute discretion. 

You agree that during your employment with the Company and for a period of thirty-six (36) months subsequent to your termination of employment for any reason, you will not, without prior written approval from the Executive Vice President – Human Resources, directly or indirectly solicit or encourage any person who is an employee of the Company, its parents, subsidiaries, affiliates or related entities to terminate his or her relationship with the Company, its parents, subsidiaries, affiliates or related entities or refer any such employee to anyone outside of the Company for the purpose of seeking, obtaining, or entering into an employment or other business relationship. 

You acknowledge and agree that each of the covenants in this letter is reasonable and valid in time and scope and in all other respects, and that it is the parties’ intention that such covenants be enforced in accordance with their terms to the maximum extent permitted by law.  Each of the covenants shall be considered and construed as a separate and independent covenant.  If any of the provisions of such covenants should ever be held by a court of competent jurisdiction to exceed the scope permitted by applicable law, such provision or provisions shall be automatically modified to such lesser scope as such court may deem just and proper for the reasonable protection of the Company’s legitimate business interests and may be enforced by the Company to that extent in the manner described above and all other provisions of this letter shall be valid and enforceable.

As a condition to your offer and your employment, you must take and pass a drug test.  A positive drug test will result in the termination of your employment.  Drug testing must be done within 48 hours from receipt of this letter. 

This letter should not be construed, nor is it intended to be a contract of employment for a specified period of time, and the Company reserves the right to terminate your employment with or without cause at any time.  This letter supersedes any prior employment agreement or understandings, written or oral between you and the Company and contains the entire understanding of the Company and you with respect to the subject matter hereof.

This letter shall be construed, interpreted and applied in accordance with the law of the State of Georgia, without giving effect to any choice of law provisions thereof that would require the application of any other jurisdiction’s 

Marc Powers                                       
October 16, 2014
Page 4

laws.  You agree to irrevocably submit any dispute arising out of or relating to this letter to the exclusive concurrent jurisdiction of the Superior Court of Cobb County, Georgia, or the U.S. District Court for the Northern District of Georgia, Atlanta Division.  You also irrevocably waive, to the fullest extent permitted by applicable law, any objection you may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute, and you agree to personal jurisdiction and to accept service of legal process from the courts of Georgia.  Subject to the parties agreement set forth above regarding modification, in the event any provision in this letter is determined to be legally invalid or unenforceable by any court of competent jurisdiction, and cannot be modified to be enforceable, the affected provision shall be stricken from the letter, and the remaining terms of the letter and its enforceability shall remain unaffected.

Marc, we are pleased to extend this offer to you, and we are excited about the opportunities that your leadership will bring to this new role.  We have enclosed a copy of this letter for your records.  Please sign, date and return the original to us.

Sincerely,

/s/ Craig Menear

Craig Menear
President, U.S. Retail

	
					
	pc:
	Tim Crow
	 
	 
	 

	 
	Scott Smith
	 
	 
	 

I accept this offer as Executive Vice President – U.S. Stores pursuant to the foregoing terms and conditions:

	
					
	/s/ Marc Powers
	10/24/2014
	 
	 
	 

	Marc Powers
	Date Signed

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