Document:

Exhibit
10.3

 

AR CORP.

 

Director Restricted Stock Agreement

(“Agreement”)

 

Subject to the provisions of the AAR CORP. Stock
Benefit Plan (“Plan”), the terms of which are hereby incorporated by reference
herein, and in consideration of the agreements of the Grantee herein provided,
AAR CORP. a Delaware corporation (“Company”), hereby grants to Grantee a
restricted stock award (“Award”), effective                     
(“Date of Award”), of           
shares of common stock (“Common Stock”) of the Company, $1.00 par value (“Award
Shares”), subject to the forfeiture and nontransferability provisions hereof
and the other terms and conditions set forth herein:

 

1.             Acceptance By Grantee.  The Award is
conditioned upon the acceptance by the Grantee of the terms and conditions of
the Award as set forth in this Agreement. 
The Grantee must confirm acceptance of the Agreement on Smith Barney’s
web site (www.benefitaccess.com). If the Grantee does not accept the Agreement within
30 days from the date of the notification of the Agreement, the Award
referenced herein shall expire unless the acceptance date is extended in
writing signed by the Company.

 

2.             Restrictions. The Grantee represents that he is accepting the
Award Shares without a view toward distribution of said Award Shares and that
he will not sell, assign, transfer, pledge or otherwise encumber the Award
Shares during the period commencing on the Date of Award and ending on the date
the restrictions applicable to such Award Shares are released pursuant to this Agreement
(“Restrictive Period”).

 

 

3.             Release of Restrictions. Subject to the provisions of paragraph 4 below, the
restrictions described in paragraph 2 above shall be released with respect to
1/3 of the Award Shares on each successive anniversary of the Date of Award,
except as follows:

 

(a)           In General.  If the
Grantee’s membership on the Company’s Board of Directors terminates prior to
the last day of the Restrictive Period for any reason other than death,
Disability or Retirement, the Grantee shall forfeit to the Company all Award
Shares not previously released from the restrictions of paragraph 2 hereof.

 

(b)           Retirement.  If the
Grantee’s membership on the Company’s Board of Directors terminates by reason
of Retirement prior to the last day of the Restrictive Period, the Restrictive
Period shall terminate in accordance with the restriction release schedule set
forth above in the first clause of this paragraph 3 as to the Award Shares not
previously released; provided, however, that if the Grantee dies after
Retirement and prior to the last day of the Restrictive Period, the Grantee’s
date of death will be treated as the date on which his membership on the
Company’s Board of Directors has terminated, and the provisions of paragraph 3(c) shall
apply in determining the release of restrictions as to the Award Shares not
previously released.  For purposes of
this Agreement, “Retirement” means the Grantee’s voluntary termination of
membership on the Company’s Board of Directors at or after attaining age 65
with five or more consecutive years of service as a non-employee member of the
Company’s Board of Directors

 

2

 

(c)           Death or Disability.

 

(i)            If the Grantee’s membership on the Company’s Board of
Directors terminates by reason of death or Disability before the second
anniversary of the Date of Award, the Restrictive Period shall terminate as to
the difference between half of the total number of Award Shares and those
Shares previously released. The remaining shares shall be forfeited to the Company.  For this purpose, “Disability” means the
inability of the Grantee to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for
a continuous period of not less than 12 months.

 

(ii)           If the Grantee’s membership on the Company’s Board of
Directors terminates by reason of death or Disability after the second
anniversary of the Date of Award, the Restrictive Period shall immediately
terminate as to all of the Award Shares not previously released.

 

(d)           Restrictive Covenant.  If at any
time prior to the Award Shares’ release from restrictions hereunder, the Grantee,
without the Company’s express written consent, directly or indirectly, alone or
as a member of a partnership, group, or joint venture or as an employee,
officer, director, or greater than 1% stockholder of any corporation, or in any
capacity engages in any activity which is competitive with any of the
businesses conducted by the Company or its affiliated companies at any time
during the Grantee’s membership on the Company’s Board of Directors, the
Grantee shall forfeit to the Company all Award Shares not previously released
from the restrictions of Section 2 hereof.

 

3

 

4.             Change in Control. In the event the Grantee’s membership on the Company’s
Board of Directors terminates within one year following a Change in Control of
the Company, whether or not such change has the prior written approval of the Continuing
Directors, the Restrictive Period shall terminate as to all Award Shares not previously
released.

 

5.             Change in Outstanding Shares. In the event of any change in the outstanding
shares of Common Stock occurring through stock splits, stock dividends, stock
consolidations, spin-offs, other distributions of assets to stockholders or
assumption or conversion of outstanding Awards due to an acquisition after the
Date of Award, the Award Shares shall be treated in the same manner in any such
transaction as other shares of Common Stock. Any additional shares of Common Stock
received by the Grantee with respect to the Award Shares in any such
transaction shall be subject to the same restrictions as are then applicable to
those Award Shares for which the additional shares have been issued.

 

6.             Rights of Grantee. As the holder of the Award Shares, the Grantee is
entitled to all of the rights of a stockholder of AAR CORP. with respect to any
of the Award Shares, when issued, including, but not limited to, the right to
receive dividends declared and payable since the Date of Award.

 

7.             Shares. In aid of the restrictions set forth in paragraph 2,
the Grantee will be required to execute a stock power in favor of the Company
which will be cancelled upon release of restrictions with respect to Award
Shares released. Award Shares shall be held by the Company in electronic book
entry form on the records of the Company’s Transfer Agent, together with the
executed stock power, for the account of

 

4

 

the Grantee until such restrictions are released
pursuant to the terms hereof, or such Award Shares are forfeited to the Company
as provided by the Plan or this Agreement. The Grantee shall be entitled to the
Award Shares as to which such restrictions have been released, and the Company
agrees to issue such Award Shares in electronic form on the records of the
Transfer Agent. Upon request by the Grantee, the Transfer Agent will transfer
such released Award Shares in electronic form to the Grantee’s broker for the
Grantee’s account or issue certificates in the name of the Grantee representing
the Award Shares for which restrictions have been released.

 

8.             Legend. The Company may, in its discretion, place a legend
or legends on any electronic shares or certificates representing Award Shares
issued to the Grantee that the Company believes is required to comply with any
law or regulation.

 

9.             Committee Powers. The Committee may subject the Award Shares to such
conditions, limitations or restrictions as the Committee determines to be
necessary or desirable to comply with any law or regulation or with the
requirements of any securities exchange. At any time during the Restrictive
Period, the Committee may reduce or terminate the Restrictive Period otherwise
applicable to all or any portion of the Award Shares.

 

10.           Miscellaneous.

 

(a)           The Award and this Agreement shall be construed,
administered and governed in all respects under and by the laws of the State of
Illinois.

 

(b)           This Agreement has been examined by the parties
hereto, and accordingly the rule of construction that ambiguities be
construed against a party which causes a document to be drafted shall have no
application in the construction or

 

5

 

interpretation hereof. If any part of this Agreement
is held invalid for any reason, the remainder hereof shall nevertheless remain
in full force and effect.

 

(c)           This Agreement constitutes the entire agreement
between the parties concerning the subject matter hereof and any prior
understanding or representation of any kind antedating this Agreement
concerning such subject matter shall not be binding upon either party except to
the extent incorporated herein. No consent, waiver, modification or amendment
hereof, or additional obligation assumed by either party in connection
herewith, shall be binding unless evidenced by a writing signed by both parties
and referring specifically hereto. No consent, waiver, modification or amendment
with respect hereto shall be construed as applicable to any past or future events
other than the one in respect of which it was specifically made.

 

(d)           This Agreement shall be construed consistent with the
provisions of the Plan and in the event of any conflict between the terms of
this Agreement and the terms of the Plan, the terms of the Plan shall control
and any terms of this Agreement which conflict with Plan terms shall be void.

 

(e)           Capitalized terms used herein and not defined herein
will have the meaning set forth in the Plan.

 

Questions concerning the provisions of this
Agreement should be directed to the Company’s Corporate Secretary: 630/227-2050;
fax 630/227-2059.

 

*              *              *

 

By accepting this Agreement, you irrevocably agree
to be bound by the terms hereof. To accept this Agreement, please follow the
procedures set forth below:

 

	
  Step
  1:

  	
   

  	
  View
  your Award Summary (confirm that the number of shares awarded is correct)

  

 

6

 

	
  Step
  2:

  	
   

  	
  Read
  and review the documentation.

  
	
   

  	
   

  	
   

  
	
  Step
  3:

  	
   

  	
  Confirm
  the review/acceptance of this Agreement.

  
	
   

  	
   

  	
   

  
	
  Step
  4:

  	
   

  	
  Receive
  an online confirmation of your acceptance of this Agreement.

  

 

7Exhibit 10.4

 

THIRD AMENDMENT

TO

LEASE AGREEMENT

 

AAR AIRCRAFT SERVICES, INC.

INDIANAPOLIS AIRPORT AUTHORITY

 

THIS
THIRD AMENDMENT made and entered into the 16th day of May, 2008 by and between
the Indianapolis Airport Authority, (hereinafter referred to as Authority) and
AAR Aircraft Services, Inc. (hereinafter referred to as Tenant),

 

W I T N E S S E T H:

 

WHEREAS,
Authority and Tenant entered into a Lease Agreement dated June 17, 2004,
providing for Tenant’s occupancy of a portion of the Indianapolis Maintenance
Center as the Leased Premises; and

 

WHEREAS,
Authority and Tenant entered into Amendment No. 1 dated January 21,
2005 amending the Leased Premises described in Exhibit B, revised the
terms of Article XII, Financial Security and revised Exhibit K, Operating
Rules; and

 

WHEREAS,
Authority and Tenant entered into Amendment No. 2 dated May 19, 2006
amending the Leased Premises described in Exhibit B, revised Activation
Notice language in Article II, revised rental language in Article VI,
addition of language in Article II and Article VI for the activation
of On-Call Bays, and addition of language in Article VI for training grant
aid including an update to Exhibit G and the addition of Exhibit L;
and

 

WHEREAS,
Tenant desires to modify Bay 5B so as the Bay can be utilized to paint Tenant’s
customers aircraft; and

 

WHEREAS,
Authority and Tenant find it necessary to update use of premises,
environmental, expiration and maintenance/services language due to Tenants
desire to modify Bay 5B to paint Tenant’s customers aircraft;

 

NOW
THEREFORE, in consideration of the mutual covenants and considerations
contained herein, the parties agree that Article II, Lease of Leased
Premises; Ownership of Improvements and Equipment; Use of Premises, Section 206.
Use of Leased Premises; Prohibited Uses (A), Article V, Term;
Extension Periods, Section 503. Rights at Expiration/Termination, Article X,
Maintenance, Repairs and Replacements, Section 1001. Maintenance,
Repairs and Replacements to Facilities and Leased Premises (other than
Equipment) and Section 1002.  Maintenance
Repairs and Replacements of and to Equipment, Article XI, Facilities
Operations and Services, Section 1101. Services and Section 1103.
Utilities to be Obtained and Maintained by Tenant, and Exhibit K,
Operating Rules are hereby deleted and the following are substituted:

 

 

ARTICLE
II

LEASE OF
LEASED PREMISES; OWNERSHIP OF IMPROVEMENTS

AND EQUIPMENT; USE OF LEASED PREMISES

 

Section 206.          Use of Leased Premises; Prohibited
Uses.

 

(A)          Tenant may only use the Leased
Premises for operation of an aircraft, airframe, engine and component
maintenance, repair and overhaul (“MRO”) facility for the commercial airlines
and other owners, operators or service/maintenance providers of aircraft
(including without limitation military and governmental operators of aircraft),
including the operation and use of aircraft bays, aircraft engine and component
overhaul and repair shops, test cells, aircraft wash and enclosed paint areas,
including Bay 5B for aircraft painting, component, part and tooling production,
reproduction, or construction (i.e., make from raw materials or piece parts)
for MRO, component maintenance, and modification activities.  In addition, Tenant may use the Leased Premises
for activities functionally related and subordinate to the uses permitted
above, including warehouse and storage areas, common areas, facilities
maintenance shops, administrative and support areas, truck docks and aprons,
special materials storage areas, aircraft taxiways and parking areas, fire
protection facilities and employee and visitor parking so long as such
activities are of a size commensurate with such operation.

 

ARTICLE V

 

TERM; EXTENSION PERIODS

 

Section 503.          Rights at Expiration/Termination.

 

(A)          In no event shall Tenant or any of its subtenants continue
to possess, occupy or use the Leased Premises beyond the expiration or sooner
termination of the Term without the Authority’s written consent, which consent
may be withheld in the Authority’s sole and absolute discretion.

 

(B)          Tenant further agrees that
upon the expiration or earlier termination of the Term, the Leased Premises
shall be delivered to the Authority in at least as good condition as originally
delivered to Tenant, (provided that Hangar 5B may be returned in the condition
as modified by Tenant for aircraft painting), reasonable wear and tear and
matters covered by insurance excepted, and subject to performance by the
Authority of the Authority’s maintenance, repair and replacement obligations
under this Lease, including but not limited to its maintenance, repair and
replacement obligations pursuant to Sections 1001 and 1002 below, and the
Authority’s obligations under Article VII and Section 1702 of this
Lease.

 

2

 

ARTICLE
X

MAINTENANCE,
REPAIRS AND REPLACEMENTS

 

Section 1001.       Maintenance, Repairs and Replacements
to Facilities and Leased Premises (other than Equipment).  Except to the extent Tenant is responsible
therefor under this Section 1001, and subject to Article XVI of this
Lease and subject to the Authority’s obligations under Articles VII and XVII of
this Lease, the Authority shall, at its cost and expense, be responsible during
the Term for (a) performing all maintenance, repairs and replacements with
respect to the Facilities and the Leased Premises (other than Equipment, which
is covered under Section 1002 below), including without limitation
foundations, exterior Facility walls (including door frames, window frames,
doors and windows), exteriors of the Facilities, interior demising walls
(including door frames and window frames), roof, drains, gutters, and all
structural parts of the Facilities, (b) periodically painting the interior
walls, and sealing the concrete floors, within the Leased Premises in order to
maintain them in a reasonably neat, safe condition, and (c) performing all
maintenance, repairs and replacements with respect to the air conditioning,
electrical, heating, mechanical and plumbing systems in the Facilities, all in
at least as good condition as exists on the Effective Date of this Lease
Agreement or in such condition as may be required by applicable Law.  However, the Authority shall not be required
to pay for, and Tenant shall indemnify, defend, save and hold harmless the
Authority from and against (without reimbursement from Grant Proceeds or
Leasehold Improvement Credits), the cost and expense (including without
limitation reasonable attorneys’ fees) of, any such maintenance, repairs or
replacements that become necessary as a result of or by reason of Tenant’s, its
subtenants’ or its or their respective agent’s, contractor’s, Employee’s, or
Invitee’s negligence or willful misconduct. 
Furthermore, provided that the Authority delivered the Paint Booths to
Tenant in good working order and condition and in compliance with all Laws,
Tenant shall, at its cost and expense, be responsible for all maintenance and
repairs (but not replacements, except to the extent described in the proviso to
this sentence) of any paint booths now or hereafter located at the Leased
Premises (the “Paint Booths”), and shall perform such maintenance and repairs
(but not replacements, except as described in the proviso to this sentence) as
are necessary or appropriate in order to cause the Paint Booths to remain in
the same condition and repair as when the Paint Booths were first delivered by
the Authority to Tenant (ordinary wear and tear excepted); provided, however,
that if the replacement of the Paint Booths becomes necessary as a result of or
by reason of Tenant’s, its subtenants’, or its or their respective agent’s,
contractor’s, Employee’s, or Invitee’s negligence or willful misconduct, Tenant
shall be responsible, at its cost and expense, for those replacements (without
reimbursement from Grant Proceeds or Leasehold Improvement Credits). Provided
that the Authority delivered the Paint Booths to Tenant in good working order
and condition and in compliance with all Laws, Tenant hereby acknowledges and
agrees that the Authority will have no liability, obligation, or responsibility
for maintaining, repairing or replacing the Paint Booths or any components
thereof. Tenant hereby further acknowledges and agrees that if Tenant replaces
the Paint Booths and is reimbursed for the cost thereof through Grant Proceeds
or Leasehold Improvement Credits, the replacement Paint Booths shall also be
deemed to belong to the Authority. 
Furthermore, as Tenant shall provide modifications to Bay 5B at its sole
cost and expense to support Tenant’s operation in the painting of Tenant’s
customers aircraft, Tenant shall, at its sole cost and expense, be responsible
for all maintenance, repairs and replacements to any modifications to Bay 5B,
which installation is associated with Tenant transforming Bay 5B into a paint
hangar to paint Tenant’s customers aircraft. 
Tenant shall perform such maintenance, repairs and replacements as are
necessary or

 

3

 

appropriate in order to
cause Bay 5B to remain in the same condition and repair as when Bay 5B was first
delivered by the Authority to Tenant (ordinary wear and tear excepted);
provided, however, that if the replacement of any of the modifications to Bay
5B becomes necessary as a result of or by reason of Authority, its respective
agent’s, contractor’s, Employee’s, or Invitee’s negligence or willful
misconduct and Authority shall be responsible, at its cost and expense, for
those repairs or replacements. Provided that the Authority delivered Bay 5B to
Tenant in good working order and condition and in compliance with all Laws,
Tenant hereby acknowledges and agrees that the Authority will have no
liability, obligation, or responsibility for maintaining, repairing or
replacing any components thereof associated with Tenant’s modifications to Bay
5B related to transforming Bay 5B into an aircraft painting operation. Tenant
hereby further acknowledges and agrees the proposed modifications to Bay 5B
shall also be deemed to belong to the Authority.

 

To the extent that, during
the Term of this Lease, it becomes necessary to install and/or operate any air
pollution control equipment at, within or upon the Facilities as a result of
Tenant’s or its subtenants’ operations at the Facilities, and if such air
pollution control equipment is not a part of the Facilities on the Effective
Date of this Lease, Tenant shall be responsible, at Tenant’s cost and expense,
for purchasing, installing and operating such equipment and the Authority shall
have no responsibility or liability therefor. Tenant shall obtain the
Authority’s prior written consent to Tenant’s installation of any such
equipment at the Facilities, which consent shall not be unreasonably withheld.
Any such equipment that is installed at, within or upon the Facilities and
which is a fixture shall be deemed a part of the Facilities and shall belong to
the Authority unless the Authority otherwise agrees in writing that it belongs
to Tenant. Tenant may seek reimbursement for the cost and expense it incurs in
purchasing and installing such equipment at the Facilities through Grant
Proceeds (if any Grant Proceeds are then available) or Leasehold Improvement
Credits, subject to the terms and conditions of Section 605(A) and (C) above.

 

Tenant’s obligations under
this Section shall survive the expiration or sooner termination of the
Term of this Lease.

 

Section 1002.              Maintenance
Repairs and Replacements of and to Equipment.

 

(A)          Repairs, Replacements and Maintenance by the Authority.  Except to the extent Tenant is responsible
therefor as provided under this Section 1002, the Authority shall, at its
cost and expense, be responsible during the Term of this Lease Agreement for
performing all maintenance, repairs, and replacements with respect to the
Equipment furnished by the Authority to Tenant (whether that Equipment is
furnished pursuant to an Activation or as replacement Equipment) including
without limitation preventive maintenance upon a periodic schedule in
accordance with manufacturers’ recommendations. The Authority’s maintenance,
repair and replacements obligations shall also extend to any Equipment for
which Tenant receives reimbursement from the Authority through Grants or
Leasehold Improvement Credits.  To the
extent that it becomes necessary to replace any item of Equipment, the Authority
shall only be obligated to replace it from then Available Equipment on the
Master List of Equipment; the Authority shall in no circumstance be obligated
to purchase a new item of replacement equipment, tooling or other personal
property. As part of the Authority’s obligations hereunder, the Authority will
provide Tenant with a working facility with re-certified tooling.  For purposes of the preceding sentence, a
“working facility” means that all Facilities Systems (other than

 

4

 

Excluded Systems) and
Equipment, which are located in the Leased Premises as of the Effective Date of
this Lease, shall be in good working order and condition if and when that
portion of the Leased Premises to which they pertain is delivered to Tenant;
provided, however, that during the Activation of any Bay or other portion of
the Leased Premises, Tenant will provide the Authority, in accordance with Section 205
above, with a list of those particular Facilities Systems (other than Excluded
Systems) and Available Equipment that Tenant will need for that particular Bay
or other area of the Leased Premises, and Tenant acknowledges that the
Authority’s obligation shall only be to deliver those particular Facilities
Systems (other than Excluded Systems) and Available Equipment to Tenant in good
working order and condition in connection with that Activation.  Notwithstanding any of the foregoing to the
contrary, the Authority shall have no obligation to provide, maintain, repair
or replace any computer hardware or software or related tools, systems or
equipment nor any modifications or installation of equipment associated with
Tenant transforming Bay 5B into a paint hangar bay; and Tenant hereby
acknowledges and agrees that Tenant shall not be entitled to any Grant Proceeds
or Leasehold Improvement Credits with respect to Tenant’s purchase,
maintenance, repair or replacement of any computer software. In addition,
notwithstanding the foregoing, Tenant shall, at its cost and expense, be
responsible for maintaining, replacing, removing, and disposing of, in
compliance with all applicable Laws, any and all filters and blast media
relating to any draw down cabinets, draw down tables, and/or blast cabinets,
and the Authority shall have no liability or responsibility for or with respect
to the filters or blast media relating to any draw down cabinets, draw down
tables, and/or blast cabinets. The Authority shall not be required to pay for,
and Tenant shall indemnify, defend, save and hold harmless the Authority from
and against (and without reimbursement from Grant Proceeds or Leasehold
Improvement Credits) the cost and expense, including without limitation
reasonable attorneys’ fees, of any such maintenance, repairs or replacements
that become necessary by reason of Tenant’s, or its subtenant’s, or its or
their respective agent’s, contractor’s, Employee’s or Invitee’s negligence or
willful misconduct.  Tenant’s obligations
under this Section shall survive the expiration or sooner termination of
the Term of Lease.

 

ARTICLE
XI

 

FACILITIES
OPERATIONS AND SERVICES

 

Section 1101.              Services.  Except as otherwise provided in this Article XI,
and without limiting the Authority’s obligations under other provisions of this
Lease, the Authority shall, at its cost and expense, furnish the following services
to Tenant during the Term of this Lease Agreement:

 

(A)          Supply and replacement of light bulbs and tubes in and on
all buildings, obstruction lights except those light bulbs and tubes installed
by Tenant in the modification of Bay 5B into a paint hangar and replacement of
all glass in the Facilities, including plate glass.

 

(B)          Provide janitorial services in the Common Areas of the
Facilities.

 

(C)          Maintain, and clean stoppages in, plumbing fixtures,
drain lines and septic and sewage disposal system to the Leased Premises except
any maintenance or stoppages within Bay 5B associated with Tenant’s
aircraft painting operation.

 

5

 

(D)          Maintain all building and overhead doors and door operating
systems, including weather stripping and glass replacement.

 

(E)          Conduct interior and exterior
maintenance for all components of the Facilities, including painting, repairing
and replacement, as necessary or appropriate except those items of the
Facilities located within Bay 5B installed by tenant in associated of Tenant’s
paint hangar operation.

 

(F)           Remove snow from Air Operation Area, Common Areas,
sidewalks, parking areas and roadways, and other areas of the Leased Premises
and Facilities at such time and in such a manner as determined by the Authority
in its reasonable discretion.

 

(G)          Landscape the Land and the Facilities, at such times and in
such manner as determined by the Authority in its sole discretion.

 

(H)          Provide and maintain hand fire extinguishers for the
interior of the Facilities, including all shops, parking and storage areas in
accordance with applicable safety codes, and other applicable Laws except any
specialty fire extinguishers that are necessary in association with Tenant
modifying Bay 5B so as to utilize Bay 5B as a paint hangar.

 

(I)           Subject to such stoppages as are
necessary in order to maintain, repair or replace the Utility pipes, wires,
lines, mains, ducts, and other related fixtures and equipment relating thereto,
and subject to Section 1102 below, furnish all utility services (the
“Utilities”) for the Leased Premises and the Facilities, including electricity,
gas, water, septic, sewer, storm water system, other than those utilities
required to be maintained by Tenant under Section 1103 twenty-four (24)
hours a day, seven (7) days a week.

 

(J)           Subject to such stoppages as are
necessary in order to maintain, repair or replace the pipes, wires, lines,
ducts and other related fixtures and equipment relating thereto, and subject to
Section 1102 below, furnish central heat, air conditioning, and
ventilation to the Leased Premises twenty-four (24) hours a day, seven (7) days
a week; provided, however, that the temperatures to be maintained at particular
times during the day, and/or in particular portions of the Leased Premises,
and/or on particular days of the week, shall be as mutually determined by the
Authority and Tenant.

 

(K)          Provide security with respect to access by third parties to
the Facilities through the front lobby entrance to the Facilities, as
reasonably determined by the Authority (which may include, without limitation,
at the Authority’s option, posting of security personnel, requirements that any
visitors to the Facilities register at the Facilities’ front lobby entrance
desk, wear identification and be accompanied by a representative of the tenant
whom they are visiting, and other similar requirements); provided, that the
Authority shall not be liable to Tenant, its subtenants, or their respective
agents, contractors, Employees, or Invitees for loss due to theft or burglary
or personal property damage.

 

Section 1103.       Utilities to Be Obtained and
Maintained by Tenant.  Tenant shall
be responsible, at its cost and expense, for obtaining telephone, television,
internet (or other cable) and for any and all connection costs, usage charges,
and any other costs and expenses associated therewith, and Tenant shall
promptly pay all such charges, costs and expenses as and when they become due
and payable.  Furthermore, including the
separate metering of the gas utility and

 

6

 

upon the completion of
modifications proposed by Tenant to Bay 5B in transforming Bay 5B into a paint
hangar bay for Tenant’s customers aircraft, Tenant shall be responsible, at its
cost and expense, all connection charges, usage charges, and any other costs
and expense associated therewith of any gas utility consumption related to
Tenant’s Bay 5B operation.

 

This Third Amendment shall
become effective as to the date first mentioned above and all other terms and
conditions of the Lease Agreement dated June 17, 2004 as amended shall
remain the same.

 

Attachments:

Exhibit K:  Operating Rules

 

7

 

SIGNATURE PAGE

 

In
witness whereof, the parties have caused this instrument to be executed as of
the date first above mentioned.

 

	
   

  	
  “AUTHORITY”

  
	
   

  	
   

  
	
   

  	
  INDIANAPOLIS
  AIRPORT AUTHORITY

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Randall L. Tobias

  
	
   

  	
   

  	
  Randall
  L. Tobias, President

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Lacy M. Johnson

  
	
   

  	
   

  	
  Lacy
  M. Johnson, Vice-President

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Alfred R. Bennett

  
	
   

  	
   

  	
  Alfred
  R. Bennett, Secretary

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  N. Stuart Grauel

  
	
   

  	
   

  	
  N.
  Stuart Grauel, Treasurer

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Kelly J. Flynn

  
	
   

  	
   

  	
  Kelly J. Flynn, Member

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Shirley M. Haflich

  
	
   

  	
   

  	
  Shirley
  M. Haflich, Member

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Michael
  B. Stayton, Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Robert H. Voorhies

  
	
   

  	
   

  	
  Robert
  H. Voorhies, Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “TENANT”

  
	
   

  	
   

  
	
   

  	
  AAR
  AIRCRAFT SERVICES, INC.,

  
	
   

  	
  an
  Illinois corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael S. Cohen

  
	
   

  	
  Printed:

  	
  Michael
  S. Cohen

  
	
   

  	
  Title:
  President & General Manager

  
	
   

  	
           AAR
  Aircraft Services - Indianapolis

  
				

 

8

 

	
  STATE
  OF INDIANA

  	
  )

  	
   

  
	
   

  	
  )
   SS:

  	
   

  
	
  COUNTY OF MARION

  	
  )

  	
   

  

 

Before me, a Notary Public
in and for said County and State, personally appeared Randall L. Tobias,
President; Lacy M. Johnson, Vice-President; Alfred R. Bennett, Secretary; N.
Stuart Grauel, Treasurer; Kelly J. Flynn, Member; Shirley M. Haflich, Member;
Michael B. Stayton, Member and Robert H. Voorhies, Member, respectively, of the
Indianapolis Airport Authority, and acknowledged the execution of the foregoing
instrument as such officers acting for and on behalf of the Indianapolis
Airport Authority.

 

WITNESS my hand and Notarial
Seal this 16th day of May, 2008.

 

	
   

  	
  /s/
  Melissa A. Bennett

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Melissa
  A. Bennett

  
	
   

  	
  Printed

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
  My
  Commission Expires:

  	
  My
  County of Residence:

  
	
   

  	
   

  
	
  4/29/2015

  	
  Morgan

  

 

	
  STATE
  OF ILLINOIS

  	
  )

  	
   

  
	
   

  	
  )
   SS:

  	
   

  
	
  COUNTY OF DuPAGE

  	
  )

  	
   

  

 

Before me, a Notary Public
in and for said County and State, personally appeared Michael S. Cohen, the
President & General Manager of AAR Aircraft Services, Inc., an
Illinois corporation, and acknowledged the execution of the foregoing
instrument as such officer acting for and on behalf of said entity.

 

WITNESS my hand and Notarial
Seal this 30th day of April, 2008.

 

 

	
   

  	
  /s/
  Kimberly A. Tilford

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Kimberly
  A. Tilford

  
	
   

  	
  Printed

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
  My
  Commission Expires:

  	
  My
  County of Residence:

  
	
   

  	
   

  
	
  9/26/2009

  	
  DuPage

  

 

9

 

Indianapolis Maintenance Center

 

Operating Rules

 

PROCEDURE TO MINIMIZE THE POTENTIAL FOR IMPROPER DISCHARGES ASSOCIATED
WITH THE INDIANAPOLIS MAINTENANCE CENTER (IMC) INDUSTRIAL WASTEWATER FACILITY

 

	
   

  	
  1.0

  	
  PURPOSE

  
	
   

  	
   

  	
   

  
	
   

  	
  2.0

  	
  SCOPE/APPLICATION

  
	
   

  	
   

  	
   

  
	
   

  	
  3.0

  	
  REFERENCES

  
	
   

  	
   

  	
   

  
	
   

  	
  4.0

  	
  DEFINITIONS

  
	
   

  	
   

  	
   

  
	
   

  	
  5.0

  	
  STATEMENT OF WORK

  
	
   

  	
   

  	
   

  
	
   

  	
  6.0

  	
  SPECIAL CIRCUMSTANCES

  
	
   

  	
   

  	
   

  
	
   

  	
  7.0

  	
  FORMS

  
	
   

  	
   

  	
   

  
	
   

  	
  8.0

  	
  EXHIBITS

  

 

EXHIBIT
K

Operating
Rules

 

 

PROCEDURE
TO MINIMIZE THE POTENTIAL FOR IMPROPER

 

DISCHARGES
ASSOCIATED WITH THE IMC WASTEWATER FACILITY

 

1.0                               PURPOSE

 

1.1                               To minimize the
potential for improper discharges associated with the IMC Wastewater Facility.

 

2.0                               SCOPE/APPLICATION/POLICY
STATEMENT

 

2.1                               Scope — The
procedure specifies practices associated with discharges to ensure compliance
with the City of Indianapolis Industrial Discharge Permit (IDP) requirements.

 

2.2                               Application — This
procedure applies to the Environmental and facility departments.

 

2.3                               Policy
Statement — At a minimum, put in place a process to achieve
compliance with all applicable environmental laws, regulations and permits.

 

3.0                               REFERENCES

 

3.1                               ISO 14001
Standard (4.4.6 Operational Control)

 

3.2                               Airport
Environmental Policy Statement.

 

3.3                               IMC Industrial
Discharge Permit

 

4.0                               DEFINITIONS

 

4.1          None.

 

K-1

 

5.0          STATEMENT OF WORK

 

RESPONSIBILITY
AND ACTION REQUIRED

 

5.1          Tenants

 

5.1.1                     Operate leased spaces to
meet the requirements of the IDP and / or operate leased spaces to allow that
the Authority can meet the requirements of the Industrial Discharge Permit.

 

5.1.1.A                 Requirements of the IDP that
must be followed by Tenant.

 

5.1.1.A.1                                             Maintain a
Toxic Organic Management Plan in accordance with applicable requirements.  Some aspects to be covered, but not limited
to the following:

 

5.1.1.A.1.a                                     All containers
will be kept closed except at times of use.

 

5.1.1.A.1.b                                     Used Oil and
Hazardous Waste Liquids are collected in separate collection containers and are
shipped out for proper disposal.

 

5.1.1.A.1.c                                      Store Materials
in the Controlled Materials Rooms, which are specially-designated chemical
accumulation rooms that have coated floor areas with berms, sumps and/or
secondary containment.

 

5.1.1.A.1.d                                     Bulk materials
will be stored as to minimize the possibility of breakage or leakage of the
containers.

 

K-2

 

5.1.1.A.1.e                                     Areas where
hazardous materials are stored must have a spill absorbent material present,
with sufficient supplies to handle a small spill of material stored in the
area.

 

5.1.1.A.1.f                                      For the
majority of materials stored in areas other than the Controlled Materials
Rooms, containers will be stored either in cabinets or lockers having integral
secondary containment.  All drums
containing liquids are stored in secondary devices.

 

5.1.1.A.1.g                                     Employees who
handle and use chemical materials must be trained how to respond in the event
of a spill and on how to prevent spills. 
The training should focus on quick action to minimize the impact of the
spill.

 

5.1.1.A.2                                              Sign a Total Toxic
Organic (TTO) Certification Statement and submit semi-annually, every June and
December.  This certification will be
submitted to the Authority as backup to the Authority’s Certification, which is
the only Certification that will be submitted to the City.

 

5.1.1.A.3                                              All discharges
authorized in the IDP shall be consistent with the terms and conditions of the
IDP.  The discharge of any pollutants
identified in the IDP more frequently than at a level in excess of the
authorized shall constitute a violation of the permit.  Any anticipated facility expansions,
production increases or process modifications which result in new, different or
increased discharges of pollutants must be reported to Authority.

 

K-3

 

5.1.2                     Operate leased spaces in a
manner that does not cause an upset in the IMC Industrial Wastewater Facility.

 

5.1.3                     No material or waste
material shall be released or discharge to the Industrial Wastewater Facility
drains, except a few aqueous soaps, cleaning materials, rinse waters from empty
containers and/or process water that has been reviewed by the Authority.

 

5.1.4                     No virgin chemicals or waste
materials, except stated in 5.1.3, shall be discharged or released into any
drains (eg. Solvents, petroleum products, paint, characteristic or listed
hazardous waste).

 

5.1.5                     Chemical Baths and certain
rinses associated with plating is the responsibility of the tenant.  These baths will be treated as required prior
to conveying to the IMC Industrial Wastewater Facility.

 

5.2               Authority

 

5.4.1                     Oversees the operation of
the IMC Industrial Wastewater Facility.

 

5.4.2                     Oversees the compliance of
the Industrial Discharge Permit.

 

5.4.3                     Approves and maintains what
process waste can be discharged to the IMC Industrial Wastewater Facility.

 

6.0                               SPECIAL
CIRCUMSTANCES

 

6.4                               Spills

 

6.1.1                     All spills to be cleaned up
immediately.

 

6.1.2                     All Spills to be reported
following the Airport Spill Procedures, in addition report directly to the
Environmental Manager at 317-487-5070.

 

6.1.3                     Spills to be cleaned up
appropriately and not
discharged to the IMC Industrial Wastewater Facility.

 

K-4

 

6.4                               AFFF Releases

 

6.2.1                     ARFF release will be
directed to the AFFF vault and treated appropriately.  The cost to discharge from the AFFF vault is
the responsibility of the tenant or operator that caused the release.

 

6.3                               Aircraft
Washing on Hardstand

 

6.3.1                     Aircraft washing is only
allowed on the hardstand if the following conditions are met:

 

6.3.1.A                                                       The aircraft
has to be positioned in the middle of the hardstand area.

 

6.3.1.B                                                       The over- spray
and wash water cannot leave the concrete area of the hardstand.

 

6.3.1.C                                                       A minimum air
temperature for the following 24 hours will not be below 40 degrees F.

 

6.3.1.D                                                       Tenant will be
responsible for ensuring that the conveyances do not build-up excess residual
or solids.

 

6.4                               Paint &
Strip Operation in Hangar 5B

 

6.4.1                     Paint and Paint Waste
Material can not be discharged into the industrial treatment conveyances lines.  A permanent plug shall be installed by tenant
to ensure no discharge.

 

6.4.2                     Tenant is responsible for
managing, storing, transporting, and disposing off-site all waste associated to
or from the paint & strip operation in accordance with all local,
state, and federal laws and regulations.

 

K-5

 

6.4.3                     If Hangar 5B is used as a
combination Paint & Strip Operation and an Aircraft Washing
Operation., then the Tenant must handle the wash water as they do the paint
waste material per 6.4.2.

 

6.4.4                     Tenant will be responsible
for ensuring that the conveyances do not build-up excess residual or solids.

 

6.5                               Controlled
Materials Building

 

6.5.1                     Tenant will not use the
barrel washer to clean any container that held hazardous waste or hazardous
chemicals.

 

6.5.2                     Tenant will provide a list
of acceptable containers, chemicals, and quantity to the Airport for approval
before using the barrel washers on such container or chemical.  The approved list will be provided in Exhibit 8.1.

 

6.5.3                     Tenant will be responsible
for all spilled material that is spilled and will dispose of it off-site.

 

6.5.4                     Tenant will provide
structural containment for vehicles and equipment that is stored or parked
outside.  The normal storm water that
drains into this containment that has not been impacted by any spilled material
can be drained and treated in the on-site Industrial Wastewater (IW) facility.

 

6.6                               Fuel Farm
Facility

 

6.6.1                     Tenant will remain in
compliance with 40 CFR Part 112 at all times.

 

6.6.2                     Tenant will develop,
implement, and provide a copy of their SPCC Plan and/or any revisions to the
Authority, within 30 days of the activation of the fuel farm or revision of the
SPCC Plan.

 

6.6.3                     At no time will fuel be
allowed to enter the storm water or Industrial Wastewater conveyance system.

 

K-6

 

6.7                               Fuel Truck
Operation

 

6.7.1                     Tenant will remain in
compliance with 40 CFR Part 112 at all times.

 

6.7.2                     Tenant will develop,
implement, and provide a copy of their SPCC Plan and/or any revisions to the
Authority, within 30 days of a on-site fuel truck or revision of the SPCC Plan.

 

6.7.3                     At no time will fuel be
allowed to enter the storm water or Industrial Wastewater conveyance system.

 

6.7.4                     Fuel truck will be stored
outside and meet containment requirements under the 40 CFR Part 112.

 

6.8                               Fuel Bowser
Operations

 

6.8.1                     Tenant will remain in
compliance with CFR Part 112 at all times.

 

6.8.2                     Tenant will develop,
implement, and provide a copy of their SPCC Plan and/or any revisions to the
Authority, within 30 days of activation of the fuel bowsers or revision of the
SPCC Plan.

 

6.8.3                     At no time will fuel be
allowed to enter the storm water or Industrial Wastewater conveyance system.

 

6.8.4                     Fuel bowsers will be stored
outside and meet containment requirements under the 40 CFR Part 112.

 

6.8.5                     At no time will a fuel
bowser containing fuel be stored in any non-activated hangars.

 

6.8.6                     Fuel bowsers will be used to
defuel an aircraft and not store fuel for any extended period of time.

 

7.0                               FORMS

 

7.1          None

 

K-7

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