Document:

Exhibit 4.3

 

SIXTH

AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS SIXTH

AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Sixth

Amendment”), is made and dated as of April 10, 2003 among AAR CORP., a

Delaware corporation (“Borrower”), the Lenders party hereto (“Lenders”),

and BANK OF AMERICA, N.A., as Agent (in such capacity, “Agent”).

 

RECITALS

 

1.             The Borrower,

the Lenders and the Agent are parties to that certain

Second Amended and Restated Credit Agreement, dated as of May 27, 1998, as amended by that

certain First Amendment to Second Amended and Restated Credit Agreement, dated

as of December 28, 1998, as further amended by that certain Second Amendment to

Second Amended and Restated Credit Agreement, dated as of February 5, 2002, as

further amended by that certain Third Amendment to Second Amended and Restated

Credit Agreement, dated as of May 23, 2002, as further amended by that certain

Fourth Amendment to Second Amended and Restated Credit Agreement, dated as of

August 31, 2002, and as further amended by that certain Fifth Amendment to

Second Amended and Restated Credit Agreement, dated as of November 26, 2002 (as

heretofore amended, the “Existing Credit Agreement”).

 

2.             The

Borrower, the Lenders, and

the Agent have agreed to certain

amendments to the Existing Credit Agreement.

 

NOW, THEREFORE,

for good and valuable consideration, the receipt and adequacy of which are

hereby acknowledged, the parties hereby agree as follows:

 

Part 1

 

Definitions

 

Section

1.1.  Certain

Definitions.  Unless otherwise defined herein or the

context otherwise requires, the following terms used in this Sixth Amendment

have the following meanings:

 

“Amended Credit

Agreement” means the Existing Credit Agreement as amended hereby.

 

“Sixth

Amendment Effective Date” shall mean April 10, 2003, subject to the

Borrower’s satisfaction of, or the Lenders’ waiver of, each of the conditions

set forth in Part 4 of this Sixth Amendment.

 

Section

1.2.  Other

Definitions.  Unless otherwise defined herein or the context

otherwise requires, terms used in this Sixth Amendment have the meanings

provided in the Amended Credit Agreement.

 

 

 

Part 2

 

Amendments to Existing Credit Agreement

 

Effective on (and

subject to the occurrence of) the Sixth Amendment Effective Date, the Existing

Credit Agreement is hereby amended in accordance with this Part 2.  Except as so amended, the Existing Credit

Agreement shall continue in full force and effect.

 

Section

2.1.  Amendment

of Definitions in Existing Credit Agreement.  Article I of the Existing Credit Agreement is amended by changing

the definitions of each of the respective terms to read in their entirety as

follows:

 

“Facility

Termination Date” means April 30, 2003.

 

“Revolving

Credit Termination Date” means April 9, 2003.

 

Section

2.2.  Amendment

of Section 2.3(a) (Repayment of Advances and Letters of Credit).  Section 2.3(a) of the Existing Credit

Agreement is amended by replacing the reference therein to “Revolving Credit

Termination Date” with the defined term “Facility Termination Date.”

 

Section

2.3.  Amendment

of Section 2.4.  Section 2.4 of the

Existing Credit Agreement is amended by replacing the reference therein to

“Revolving Credit Termination Date” with the defined term “Facility Termination

Date.”

 

Section

2.4.  Amendment

of Section 2.5 (Reductions in Aggregate Commitment).  Section 2.5(b) of the Existing Credit

Agreement is amended in its entirety to read as follows:

 

(b)           The Aggregate Commitment shall

automatically be reduced (i) by $5,000,000 on June 30, 2002, (ii) by

$10,000,000 on September 30, 2002 , (iii) by $10,000,000 on November 30, 2002,

(iv) by $5,000,000 on December 31, 2002, and (v) to $3,300,000 on April 10,

2003  (each date identified in (i)

through (v) being a “Reduction Date”). 

Each of these automatic reductions in the Aggregate Commitment shall be

in addition to, and not in lieu of, any other mandatory reductions in the

Aggregate Commitment required hereunder.

 

Part 3

 

Representations and Warranties

 

The Borrower

represents and warrants to the Lenders and the Agent that, on and as of the

Sixth Amendment Effective Date, and after giving effect to this Sixth

Amendment:

 

Section

3.1.  Authority.  The Borrower has all the necessary corporate

power to make, execute, deliver, and perform this Sixth Amendment, and this

Sixth Amendment constitutes the legal, valid and enforceable obligation of the

Borrower, enforceable against the Borrower in accordance with its terms.

 

 

2

 

Section

3.2.  No

Legal Obstacle to Agreement. 

Neither the execution of this Sixth Amendment, the making by the

Borrower of any borrowings under the Amended Credit Agreement, nor the

performance of the Amended Credit Agreement has constituted or resulted in or

will constitute or result in a breach of the provisions of any contract to

which Borrower is a party, or the violation of any law, judgment, decree or

governmental order, rule or regulation applicable to the Borrower, or result in

the creation under any agreement or instrument of any security interest, lien,

charge, or encumbrance upon any of the assets of the Borrower.  No approval or authorization of any

governmental authority is required to permit the execution, delivery or

performance by the Borrower of this Sixth Amendment, the Amended Credit

Agreement, or the transactions contemplated hereby or thereby, or the making of

any borrowings by the Borrower under the Amended Credit Agreement.

 

Section

3.3.  Incorporation

of Certain Representations.  The

representations and warranties set forth in Article V of the Amended Credit

Agreement are true and correct in all material respects on and as of the Sixth

Amendment Effective Date as though made on and as of the date hereof except for

any representations and warranties that expressly relate solely to an earlier

date, which representations and warranties were true and accurate in all

material respects on and as of such earlier date.

 

Section

3.4.  Default.  No Default or Unmatured Default has occurred

and is continuing under the Amended Credit Agreement.

 

Part 4

 

[Intentionally Omitted]

 

Part 5

 

Conditions to Effectiveness

 

This Sixth

Amendment shall be and become effective on the Sixth Amendment Effective Date

provided that (i) each of the conditions set forth in this Part 4 shall have been

satisfied (or satisfaction thereof has been waived by the Agent and the

Lenders) on or before April 10, 2003, and (ii) each Lender and the Borrower

shall have duly executed counterparts of this Sixth Amendment and provided

telecopied signature pages to the Agent. 

If the Borrower fails to satisfy each of the conditions set forth in

this Part 4 prior to 4:00 p.m. (Eastern time) on April 10, 2003, then, at the

option of the Agent and the Lenders, upon notice to the Borrower, this Sixth

Amendment shall be null and void.

 

Section 5.1.  Corporate Resolutions.  The Agent shall have received a copy of the

resolution or resolutions passed by the Board of Directors of the Borrower,

certified by the Secretary or an Assistant Secretary of Borrower as being in

full force and effect on the date hereof, authorizing the amendments to the

Existing Credit Agreement herein provided for and the execution, delivery and

performance of this Sixth Amendment and any note or other instrument or

agreement required hereunder.

 

 

3

 

Section 5.2.  Authorized Signatories.  The Agent shall have received a certificate,

signed by the Secretary or an Assistant Secretary of the Borrower, dated as of

the date hereof, as to the incumbency of the person or persons authorized to

execute and deliver this Sixth Amendment and any instrument or agreement

required hereunder on behalf of the Borrower.

 

Section 5.3.  Required Payment.  The Agent shall have received, for the

ratable benefit of the Lenders, a repayment of the Advances in the amount of at

least $4,000,000. For the avoidance doubt, the remaining amount of the unpaid

Obligations, including without limitation all outstanding Advances, interest,

fees, and expenses, shall be due and payable on the Facility Termination Date.

 

Section 5.4.  Amendment Fee.  The Agent shall have received, for its own

account, a payment of $25,000.00 as a work fee for this Sixth Amendment.

 

Section 5.5.  Closing Certificate.  The Agent shall have received an officer’s

certificate from the Borrower, executed by either the Chief Executive Officer

or the Chief Financial Officer of the Borrower, certifying that after giving

effect to this Sixth Amendment, no Default or Unmatured Default will be in

existence, such certificate being in form reasonably satisfactory to the Agent.

 

Part 6

 

Miscellaneous

 

Section 6.1.  References to the

Credit Agreement.  Each reference to

the Credit Agreement in the Amended Credit Agreement, the Notes or any of the

other instruments, agreements, certificates or other documents executed in

connection therewith (collectively, the “Loan Documents”), shall be deemed to

be a reference to the Amended Credit Agreement, and as the same may be further

amended, restated, supplemented or otherwise modified from time to time in

accordance therewith.

 

Section

6.2.  Expenses of Agent.  Within

seven (7) Business Days of the receipt from the Agent of a detailed bill, the

Borrower shall pay all reasonable costs and expenses incurred by the Agent in

connection with the preparation, negotiation and execution of the Amended

Credit Agreement, this Sixth Amendment and any other Loan Documents executed

pursuant hereto and any and all modifications, and supplements thereto,

including, without limitation, the reasonable costs and fees of the Agent’s

legal counsel and any taxes or expenses associated with or incurred in

connection with any instrument or agreement referred to herein or contemplated

hereby.

 

Section 6.3.  Benefits.  This Sixth Amendment shall be binding upon,

and shall inure to the benefit of, the parties hereto and their respective

successors and assigns.

 

Section 6.4.  GOVERNING LAW.  THIS SIXTH AMENDMENT SHALL BE GOVERNED BY,

AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS, WITHOUT

GIVING EFFECT TO CONFLICTS OF LAW PRINCIPLES.

 

 

4

 

Section 6.5.  Effect.  Except as expressly herein amended, the

terms and conditions of the Existing Credit Agreement shall remain in full

force and effect without amendment or modification, express or implied. The

entering into this Sixth Amendment by the Lenders shall not be construed or

interpreted as an agreement by the Lenders to enter into any future amendment

or modification of the Amended Credit Agreement or any of the other Loan

Documents.

 

Section 6.6.  Counterparts;

Telecopied Signatures.  This Sixth

Amendment may be executed in any number of counterparts and by different

parties to this Sixth Amendment on separate counterparts, each of which when so

executed shall be deemed to be an original and shall be binding upon all

parties, their successors and assigns, and all of such counterparts taken together shall be

deemed to constitute one and the same instrument. Any signature delivered or transmitted by a party by facsimile

transmission shall be deemed to be an original signature hereto.

 

Section

6.7.  Integration.  This Sixth Amendment, together with the Loan

Documents, contains the entire and exclusive agreement of the parties hereto

with reference to the matters discussed herein and therein.  This Sixth Amendment supersedes all prior

drafts and communications with respect thereto.  This Sixth Amendment may not be amended except in a writing.

 

Section 6.8.  Further

Assurances.  The Borrower agrees to

take such further actions as the Agent shall reasonably request from time to

time in connection herewith to evidence or give effect to the amendments set

forth herein or any of the transactions contemplated hereby.

 

Section 6.9.   Section Titles.  Section titles and references used in this

Sixth Amendment shall be without substantive meaning or content of any kind

whatsoever and are not a part of the agreements among the parties hereto.

 

5

 

IN WITNESS WHEREOF,

the parties hereto have caused this Sixth Amendment to be duly executed and

delivered as of the date first written above.

 

	

   

  	

   

  	

  AAR CORP.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By

  	

  /s/

  TIMOTHY J. ROMENESKO

  
	

   

  	

   

  	

   

  	

  Timothy J. Romenesko

  
	

   

  	

   

  	

   

  	

  Vice President

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  BANK OF AMERICA, N.A., as Agent

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By

  	

  /s/

  MICHAEL J. MCKENNEY

  
	

   

  	

   

  	

   

  	

  Michael J. McKenney

  
	

   

  	

   

  	

   

  	

  Managing Director

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  BANC OF AMERICA STRATEGIC SOLUTIONS, INC., as Lender

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By

  	

  /s/

  MICHAEL J. MCKENNEY

  
	

   

  	

   

  	

   

  	

  Michael J. McKenney

  
	

   

  	

   

  	

   

  	

  Managing Director

  

 

6Exhibit

4.9

 

FOURTH AMENDMENT

TO REVOLVING LOAN AGREEMENT

 

This FOURTH AMENDMENT TO

REVOLVING LOAN AGREEMENT dated as of March 10, 2003 (the “Fourth Amendment”),

is entered into by and between AAR CORP., a Delaware corporation (the

“Borrower”), and LASALLE BANK NATIONAL ASSOCIATION, a national banking

association (the “Bank”).

 

RECITALS:

 

A.            The Borrower and the Bank entered into that certain

Revolving Loan Agreement dated as of April 11, 2001, as modified and amended by

that certain First Amendment to Revolving Loan Agreement dated November 30,

2001, a Second Amendment to Revolving Loan Agreement dated April 22, 2002 and a

Third Amendment to Revolving Loan Agreement dated June 1, 2002 (collectively,

the “Loan Agreement”).

 

B.            At the present time the Borrower requests, and the Bank

is agreeable to amending the Agreement with regard to the sub-facility for

issuance of Letters of Credit, pursuant to the terms and conditions hereinafter

set forth.

 

NOW THEREFORE, in

consideration of the premises and other good and valuable consideration, the

receipt and adequacy of which are hereby acknowledged, the Borrower and the

Bank hereby agree as follows:

 

AGREEMENTS:

 

1.             RECITALS. 

The foregoing Recitals are hereby made a part of this Fourth Amendment.

 

2.             DEFINITIONS. 

Capitalized words and phrases used herein without definition shall have

the respective meanings ascribed to such words and phrases in the Loan

Agreement.

 

3.             AMENDMENTS TO THE LOAN AGREEMENT.

 

3.1.          Letters of Credit.  The first paragraph of Section 2.6 of the

Loan Agreement is hereby amended to add the following after the phrase “Revolving

Loan Maturity Date”:

 

“...;

provided, however, that there is sufficient cash collateral in the Cash

Collateral Account as provided in Section 2.7 hereinbelow, up to Five Million

Dollars ($5,000,000.00) of Letters of Credit issued under the Maximum Letter of

Credit Obligations may expire no later than April 10, 2004.”

 

3.2.          Cash Collateral for Letters of

Credit.  The Loan Agreement is

hereby amended by adding the following new Section 2.7:

 

“2.7         Cash Collateral.

 

(a)           If the Borrower is required to

provide cash collateral for any Letter of Credit Obligations pursuant to this

Agreement prior to the Maturity Date, the Borrower will pay to the Bank cash in

an amount equal to one hundred five percent (105%) of the maximum amount then

available to be drawn under each applicable Letter of Credit.  Such cash shall be held by the Bank in a

cash collateral account (the “Cash Collateral Account”) maintained at

the Bank.  The Cash Collateral Account

shall be in the name of 

 

 

the Borrower and shall be

pledged to, and subject to the control of the Bank, and for the benefit of the

Bank, in a manner satisfactory to the Bank. 

The Borrower hereby pledges and grants to the Bank a security interest

in all such funds held in the Cash Collateral Account from time to time and all

proceeds thereof, as security for the payment of all amounts due in respect of

the Letter of Credit Obligations and other Obligations, whether or not then

due.  The Agreement, including the

provisions of this Section 2.7, shall constitute a security agreement under

applicable law.

 

(b)           If any Letter of Credit Obligations,

whether or not then due and payable, shall for any reason be outstanding on the

Maturity Date, the Borrower shall either (A) provide cash collateral therefor

in the manner described above, (B) cause all such Letters of Credit and Letter

of Credit Obligations, if any, to be canceled and returned, or (C) deliver a

stand-by letter (or letters) of credit in guaranty of such Letter of Credit

Obligations, which stand-by letter (or letters) of credit shall be of like

tenor and duration (plus thirty (30) additional days) as, and in an amount

equal to one hundred five percent (105%) of the aggregate maximum amount then

available to be drawn under, the Letters of Credit to which such outstanding

Letter of Credit Obligations relate and shall be issued by a Person, and shall

be subject to such terms and conditions, as are satisfactory to the Bank in its

sole discretion.

 

(c)           From time to time after funds are

deposited in the Cash Collateral Account by the Borrower, whether before or

after the Maturity Date, the Bank may apply such funds then held in the Cash

Collateral Account to the payment of any amounts, and in such order as the Bank

may elect, as shall be or shall become due and payable by the Borrower to the

Bank with respect to such Letter of Credit Obligations and, upon the

satisfaction in full of all Letter of Credit Obligations, to any other

Obligations of the Borrower then due and payable.

 

(d)           Neither the Borrower nor any Person

claiming on behalf of or through the Borrower shall have any right to withdraw

any of the funds held in the Cash Collateral Account, except that upon the

termination of all Letter of Credit Obligations and the payment of all amounts

payable by the Borrower to the Bank in respect thereof, any funds remaining in

the Cash Collateral Account shall be applied to other Obligations then due and

owing and upon payment in full of such Obligations, any remaining amount shall

be paid to the Borrower or as otherwise required by law.  Interest earned on deposits in the Cash

Collateral Account shall be for the account of the Borrower.

 

(e)           The Borrower agrees to execute the

Pledge Agreement described below and such other documents and instruments as

the Bank shall reasonably require with respect to the security interests

created under this Section.”

 

4.             REPRESENTATIONS AND WARRANTIES.  To induce the Bank to enter into this Fourth

Amendment, the Borrower hereby certifies, represents and warrants to the Bank

that:

 

4.1.          Organization.  The Borrower is a corporation duly

organized, existing and in good standing under the laws of the State of

Delaware, with full and adequate corporate power to carry on and conduct its

business as presently conducted.  The

Borrower is duly licensed or qualified in all foreign jurisdictions wherein

failure to qualify would have a material adverse effect.  The Articles of Incorporation and Bylaws,

Borrowing Resolutions and Incumbency Certificate of the Borrower have not been

changed or amended since the most recent date that certified copies thereof

were delivered to the Bank.  The exact

legal name of the Borrower is as 

 

2

 

set forth in the preamble

of this Fourth Amendment, and the Borrower currently does not conduct, nor has

it during the last five (5) years conducted, business under any other name or

trade name.  The Borrower will not change

its name, its organizational identification number, if it has one, its type of

organization, its jurisdiction of organization or other legal structure.

 

4.2.          Authorization.  The Borrower is duly authorized to execute

and deliver this Fourth Amendment and is and will continue to be duly authorized

to borrow monies under the Loan Agreement, as amended hereby, and to perform

its obligations under the Loan Agreement, as amended hereby.

 

4.3.          No Conflicts.  The execution and deliver of this Fourth

Amendment and the performance by the Borrower of its obligations under the Loan

Agreement, as amended hereby, do not and will not conflict with any provision

of law or of the articles of incorporation or bylaws of the Borrower or of any

material agreement binding upon the Borrower.

 

4.4.          Validity and Binding Effect.  The Loan Agreement, as amended hereby, is a

legal, valid and binding obligation of the Borrower, enforceable against the

Borrower in accordance with its terms, except as enforceability may be limited

by bankruptcy, insolvency or other similar laws of general application

affecting the enforcement of creditors’ rights or by general principles of

equity limiting the availability of equitable remedies.

 

4.5.          Compliance with Loan Agreement.  The representation and warranties set forth

in Section 6 of the Loan Agreement, as amended hereby, are true and correct

with the same effect as if such representations and warranties had been made on

the date hereof, with the exception that all references to the financial

statements shall mean the financial statements most recently delivered to the

Bank and except for such changes as are specifically permitted under the Loan

Agreement.  In addition, the Borrower

has complied with and is in compliance with all of the covenants sets forth in

the Loan Agreement.

 

4.6.          No Event of Default.  As of the date hereof, no Event of Default

under the Loan Agreement as amended hereby, or event or condition, which with

the giving of notice or the passage of time or both, would constitute an Event

of Default, has occurred or is continuing.

 

5.             CONDITIONS PRECEDENT.  This Fourth Amendment shall become effective as of the date above

first written after receipt by the Bank of the following documents:

 

5.1           Fourth Amendment.  This Fourth Amendment executed by the

Borrower and the Bank.

 

5.2           Pledge Agreement.  A Pledge Agreement executed by the Borrower

in favor of the Bank.

 

5.3           Other Documents.  Such other documents, certificates and/or

opinions of counsel as the Bank may request.

 

6.             GENERAL.

 

6.1.          Governing Law: Severability.  This Fourth Amendment shall be construed in

accordance with and governed by the laws of Illinois.  Wherever possible each provision of the Loan Agreement and this

Fourth Amendment shall be interpreted in such manner as to be effective and

valid under applicable law, but if any provision of the Loan Agreement and this

 

3

 

Fourth Amendment shall be

prohibited by or invalid under such law, such provision shall be ineffective to

the extent of such prohibition or invalidity, without invalidating the

remainder of such provision or the remaining provisions of the Loan Agreement

and this Fourth Amendment.

 

6.2.          Successors and Assigns.  This Fourth Amendment shall be binding upon

the Borrower and the Bank and their respective successors and assigns, and

shall inure to the benefit of the Borrower and the Bank and the successors and

assigns of the Bank.

 

6.3.          Continuing Force and Effect of Loan

Documents.  Except as specifically

modified or amended by the terms of this Fourth Amendment, all other terms and

provisions of the Loan Agreement and the other Loan Documents are incorporated

by reference herein, and in all respects, shall continue in full force and

effect.  The Borrower, by execution of

this Fourth Amendment, hereby reaffirms, assumes and binds itself to all of the

obligations, duties, rights, covenants, terms and conditions that are contained

in the Loan Agreement and the other Loan Documents.

 

6.4.          References to Loan Agreement.  Each reference in the Loan Agreement to “this

Agreement”, “hereunder”, “hereof”, or words of like import, and each reference

to the Loan Agreement in any and all instruments or documents delivered in

connection therewith, shall be deemed to refer to the Loan Agreement, as

amended hereby.

 

6.5.          Counterparts.  This Fourth Amendment may be executed in any

number of counterparts, all of which shall constitute one and the same

agreement.

 

IN WITNESS WHEREOF, the

parties hereto have executed this Fourth Amendment to Revolving Loan Agreement

as of the date first above written.

 

 

	

  AAR CORP.

  	

   

  	

  LASALLE

  BANK NATIONAL

  ASSOCIATION

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

    /s/ MICHAEL K. CARR

  	

   

  	

  By:

  	

    /s/ SCOTT CARBON

  	

   

  
	

  Its:

  	

    Vice President & Assistant Treasurer

  	

   

  	

  Its:

  	

    Vice President

  	

   

  
							

 

4

 

 

 

FIFTH AMENDMENT TO

REVOLVING LOAN AGREEMENT

 

 

                This FIFTH

AMENDMENT TO REVOLVING LOAN AGREEMENT dated as of March 21, 2003 (the “Fifth

Amendment”), is entered into by and between AAR CORP., a Delaware corporation

(the “Borrower”), and LASALLE BANK NATIONAL ASSOCIATION, a national banking

association (the “Bank”).

 

RECITALS:

 

A.            The

Borrower and the Bank entered into that certain Revolving Loan Agreement dated

as of April 11, 2001, as modified and amended by that certain First Amendment

to Revolving Loan Agreement dated November 30, 2001, a Second Amendment to

Revolving Loan Agreement dated April 22, 2002, a Third Amendment to Revolving

Loan Agreement dated June 1, 2002 and a Fourth Amendment to Revolving Loan

Agreement dated as of March 10, 2003 (collectively, the “Loan Agreement”).

 

B.            At

the present time the Borrower requests, and the Bank is agreeable to amending

the Agreement with regard to the sub-facility for issuance of Letters of

Credit, pursuant to the terms and conditions hereinafter set forth.

 

                NOW

THEREFORE, in consideration of the premises and other good and valuable

consideration, the receipt and adequacy of which are hereby acknowledged, the

Borrower and the Bank hereby agree as follows:

 

AGREEMENTS:

 

1.             RECITALS.  The foregoing Recitals are hereby made a

part of this Fifth Amendment.

 

2.             DEFINITIONS.  Capitalized words and phrases used herein

without definition shall have the respective meanings ascribed to such words

and phrases in the Loan Agreement.

 

3.             AMENDMENTS TO

THE LOAN AGREEMENT.

 

3.1.          Maturity

Date.  The definition of Maturity

Date in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and

the following is inserted in lieu thereof:

 

“ “Maturity Date”

shall mean March 21, 2003.”

 

3.2.          Revolving

Loan Commitment.  The definition

of  “Revolving Loan Commitment” in

Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the

following is inserted in lieu thereof:

 

“ “Revolving Loan

Commitment” shall mean zero and 00/100 Dollars ($0.00).”

 

3.3.          Letters

of Credit.  The first paragraph of

Section 2.6 of the Loan Agreement is hereby amended to add the following after

the phrase “Revolving

Loan Maturity Date”;

 

“...; provided, however, that, notwithstanding the

Revolving Loan Maturity Date, if there is sufficient cash collateral in the

Cash Collateral Account as provided in Section 2.7 hereinbelow, up to Five

Million Dollars ($5,000,000.00) of Letters of Credit may be 

 

 

5

 

issued under the Maximum Letter of Credit Obligations,

to expire no later than April 10, 2004.”

 

4.             REPRESENTATIONS

AND WARRANTIES.  To induce the Bank

to enter into this Fifth Amendment, the Borrower hereby certifies, represents

and warrants to the Bank that:

 

4.1.          Organization.  The Borrower is a corporation duly

organized, existing and in good standing under the laws of the State of

Delaware, with full and adequate corporate power to carry on and conduct its

business as presently conducted.  The

Borrower is duly licensed or qualified in all foreign jurisdictions wherein

failure to qualify would have a material adverse effect. The Articles of

Incorporation and Bylaws, Borrowing Resolutions and Incumbency Certificate of

the Borrower have not been changed or amended since the most recent date that

certified copies thereof were delivered to the Bank.  The exact legal name of the Borrower is as set forth in the

preamble of this Fifth Amendment, and the Borrower currently does not conduct,

nor has it during the last five (5) years conducted, business under any other

name or trade name.  The Borrower will

not change its name, its organizational identification number, if it has one,

its type of organization, its jurisdiction of organization or other legal

structure.

 

4.2.          Authorization.  The Borrower is duly authorized to execute

and deliver this Fifth Amendment and is and will continue to be duly authorized

to borrow monies under the Loan Agreement, as amended hereby, and to perform

its obligations under the Loan Agreement, as amended hereby.

 

4.3.          No

Conflicts.  The execution and

delivery of this Fifth Amendment and the performance by the Borrower of its

obligations under the Loan Agreement, as amended hereby, do not and will nor

conflict with any provision of law or of the articles of incorporation or bylaws

of the Borrower or of any material agreement binding upon the Borrower.

 

4.4.          Validity

and Binding Effect.  The Loan

Agreement, as amended hereby, is a legal, valid and binding obligation of the

Borrower, enforceable against the Borrower in accordance with its terms, except

as enforceability may be limited by bankruptcy, insolvency or other similar

laws of general application affecting the enforcement of creditors’ rights or

by general principles of equity limiting the availability of equitable remedies.

 

4.5.          Compliance

with Loan Agreement.  The

representation and warranties set forth in Section 6 of the Loan Agreement, as

amended hereby, are true and correct with the same effect as if such

representations and warranties had been made on the date hereof, with the

exception that all references to the financial statements shall mean the

financial statements most recently delivered to the Bank and except for such

changes as are specifically permitted under the Loan Agreement.  In addition, the Borrower has complied with

and is in compliance with all of the covenants set forth in the Loan Agreement.

 

4.6.          No

Event of Default.  As of the date

hereof, no Event of Default under the Loan Agreement as amended hereby, or

event or condition, which with the giving of notice or the passage of time or

both, would constitute an Event of Default, has occurred or is continuing.

 

5.             CONDITIONS

PRECEDENT.  This Fifth Amendment

shall become effective as of the date above first written after receipt by the

Bank of the following documents:

 

5.1.          Fifth

Amendment.  This Fifth Amendment

executed by the Borrower and the Bank.

 

 

6

 

5.2.          Other

Documents.  Such other documents,

certificates and/or opinions of counsel as the Bank my request.

 

6.             GENERAL.

 

6.1           Governing

Law: Severability.  This Fifth

Amendment shall be construed in accordance with and governed by the laws of

Illinois.  Wherever possible each

provision of the Loan Agreement and this Fifth Amendment shall be interpreted

in such manner as to be effective and valid under applicable law, but if any

provision of the Loan Agreement and this Fifth Amendment shall be prohibited by

or invalid under such law, such provision shall be ineffective to the extent of

such prohibition or invalidity, without invalidating the remainder of such

provision or the remaining provisions of the Loan Agreement and this Fifth

Amendment.

 

6.2.          Successors

and Assigns.  This Fifth Amendment

shall be binding upon the Borrower and the Bank and their respective successors

and assigns, and shall inure to the benefit of the Borrower and the Bank and

the successors and assigns of the Bank.

 

6.3.          Continuing

Force and Effect of Loan Documents. 

Except as specifically modified or amended by the terms of this Fifth Amendment,

all other terms and provisions of the Loan Agreement and other Loan Documents

are incorporated by reference herein, and in all respects, shall continue in

full force and effect.  The Borrower, by

execution of this Fifth Amendment, hereby reaffirms, assumes and binds itself

to all of the obligations, duties, rights, covenants, terms and conditions that

are contained in the Loan Agreement and the other Loan Documents.

 

6.4.          References

to Loan Agreement.  Each reference

in the Loan Agreement to “this Agreement”, “hereunder”, “hereof”, or words of

like import, and each reference to the Loan Agreement in any and all

instruments or documents delivered in connection therewith, shall be deemed to

refer to the Loan Agreement, as amended hereby.

 

6.5.          Counterparts.  This Fifth Amendment may be executed in any

number of counterparts, all of which shall constitute one and the same

agreement.

 

                IN WITNESS

WHEREOF, the parties hereto have executed this Fifth Amendment to Revolving

Loan Agreement as of the date first above written.

 

 

	

  AAR CORP.

  	

   

  	

  LASALLE BANK NATIONAL ASSOCIATION

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ MICHAEL K. CARR

  	

   

  	

  By:

  	

   

  	

  /s/  FRANK

  FLEWELLING

  
	

  Its:

  	

   

  	

  Vice President & Assistant Treasurer

  	

   

  	

  Its:

  	

   

  	

  Senior Vice President

  

 

 

 

7

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