Document:

Exhibit 10.1

 

FIRST AMENDMENT TO

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT OF

DAVID P. STORCH

 

This First Amendment to the
Amended and Restated Employment Agreement is made and entered into on December 18,
2008, by and between AAR CORP., a Delaware corporation (the “Company”), and
David P. Storch (“Employee”).

 

WHEREAS, the Company
and Employee are parties to an Amended and Restated Employment Agreement dated
as of May 31, 2006 (the “Agreement”) and now desire to amend the Agreement
to comply with Internal Revenue Code Section 409A and the guidance and
regulations thereunder, to the extent applicable.

 

NOW, THEREFORE, in
consideration of the mutual covenants and promises contained herein, and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree to amend the Agreement as follows, effective as
of the date hereof:

 

1.             By amending Section 10(a)(ii)(A) to delete
the reference to “promptly” and replace with “, within 30 days following such
termination of employment,”.

 

2.             By amending Section 10(a)(ii)(B) to delete
the reference to “90 days” and replace with “30 days.”

 

3.             By amending Section 10(e) to delete the
reference to “promptly” and to add a second sentence to read as follows:

 

The gross-up bonus shall be paid within 30
days after Employee remits the related excise tax or other amounts to the
appropriate taxing authority.

 

4.             By amending Section 12 to delete the first
sentence and replace it with subsections (a) and (b) to read as
follows:

 

(a)           If at the time of the Employee’s termination of
employment for reasons other than death he is a “Key Employee” as determined in
accordance with the procedures set forth in Treas. Reg. §1.409A-1(i), any
amounts payable to the Employee pursuant to this Agreement that are subject to Section 409A
of the Internal Revenue Code shall not be paid or commence to be paid until six
months following the Employee’s termination of employment, or if earlier, the
Employee’s subsequent death.

 

(b)           Reimbursements or in-kind benefits provided under this
Agreement that are subject to Section 409A of the Internal Revenue Code
are subject to the following restrictions: 
(1) the amount of expenses eligible for reimbursements, or in-kind
benefits provided, to the Employee during a calendar year shall not affect the
expenses eligible for reimbursement or 

 

 

the in-kind benefits provided in any other calendar
year, and (2) reimbursement of an eligible expense shall be made as soon
as practicable, but in no event later than the last day of the calendar year
following the calendar year in which the expense was incurred.

 

5.             By further amending Section 12 to designate the
last three sentences as subsection (c), delete the reference to “promptly” and
add a final sentence to read as follows:

 

The gross-up bonus shall be paid within 30
days after Employee remits the related excise tax or other amounts to the
appropriate taxing authority.

 

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

 

	
   

  	
  AAR CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert J. Regan

  
	
   

  	
  Its:

  	
  Vice President and General
  Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DAVID P. STORCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ David P. Storch

  

 

2Exhibit 10.2

 

FORM OF AMENDMENT TO

SEVERANCE AND CHANGE IN CONTROL AGREEMENT

OF EXECUTIVE

 

This Amendment
to the Severance and Change in Control Agreement is made and entered into on December 18,
2008, by and between AAR CORP., a Delaware corporation (the “Company”), and [Executive]
(the “Employee”).

 

WHEREAS,
the Company and the Employee are parties to a Severance and Change in Control
Agreement dated as of [     ] (the “Agreement”)
and now desire to amend the Agreement to comply with Internal Revenue Code Section 409A
and the guidance and regulations thereunder, to the extent applicable.

 

NOW,
THEREFORE, in consideration of the mutual covenants
and promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree to
amend the Agreement as follows, effective as of the date hereof:

 

1.                                       By
amending Section [6(a)(1)] to delete the reference to “promptly” and
replace with “, within 30 days following such termination of employment,”.

 

2.                                       By
amending Section [6(a)(2)] to read as follows:

 

The Company shall, within 30
days following such termination of employment, pay to Employee in a lump sum, a
cash payment in an amount equal to three times Employee’s total compensation
(base salary plus annual cash bonus) for either the fiscal year of the Company
most recently ended prior to the date of termination, or the preceding fiscal
year, whichever is the highest total compensation, subject to applicable
withholding; provided, however, that the Employee may elect to have payment of
any such amounts be made on a schedule of Employee’s own choosing, provided
that such schedule shall be completed no later than three years from the date
of Employee’s termination of employment.

 

3.                                       By
amending Section [6(e)] to delete the reference to “promptly” and to add a
second sentence to read as follows:

 

The gross-up bonus shall be
paid within 30 days after Employee remits the related excise tax or other
amounts to the appropriate taxing authority.

 

4.                                       By
adding a new Section [17] to read as follows:

 

18.                                 Provisions
Regarding Code §409A.

 

(a)                                  If
at the time of the Employee’s termination of employment for reasons other than
death he is a “Key Employee” as determined in accordance with the procedures
set forth in Treas. Reg. §1.409A-1(i), any amounts payable to the Employee
pursuant to this Agreement that are subject to Section 

 

 

409A of the Internal Revenue Code shall not be paid or
commence to be paid until six months following the Employee’s termination of employment,
or if earlier, the Employee’s subsequent death.

 

(b)                                 Reimbursements
or in-kind benefits provided under this Agreement that are subject to Section 409A
of the Internal Revenue Code are subject to the following restrictions:  (1) the amount of expenses eligible for
reimbursements, or in-kind benefits provided, to the Employee during a calendar
year shall not affect the expenses eligible for reimbursement or the in-kind
benefits provided in any other calendar year, and (2) reimbursement of an
eligible expense shall be made as soon as practicable, but in no event later
than the last day of the calendar year following the calendar year in which the
expense was incurred.

 

WITNESS
WHEREOF, the parties have executed this Amendment as
of the date first written above.

 

	
   

  	
  AAR
  CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
  Vice
  President and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [EXECUTIVE]

  
	
   

  	
   

  
	
   

  	
   

  

 

2Exhibit 10.3

 

FORM OF FIRST AMENDMENT TO SEVERANCE

AND CHANGE IN CONTROL AGREEMENT OF EXECUTIVE

 

This First
Amendment to the Severance and Change in Control Agreement is made and entered
into on December 18, 2008 by and between AAR CORP., a Delaware corporation
(the “Company”), and Executive (the “Employee”).

 

WHEREAS,
the Company and the Employee are parties to a Severance and Change in Control
Agreement dated as of July 9, 2008 (the “Agreement”) and now desire to
amend the Agreement to comply with Internal Revenue Code Section 409A and
the guidance and regulations thereunder, to the extent applicable.

 

NOW,
THEREFORE, in consideration of the mutual covenants
and promises contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree to
amend the Agreement as follows, effective as of the date hereof:

 

1.                                       By
amending Section 7(a)(1) to delete the reference to “promptly” and
replace with “, within 30 days following such termination of employment,”.

 

2.                                       By
amending Section 7(a)(2) to read as follows:

 

The Company shall, within 30
days following such termination of employment, pay to Employee in a lump sum, a
cash payment in an amount equal to two times Employee’s total compensation (base
salary plus annual cash bonus) for either the fiscal year of the Company most
recently ended prior to the date of termination, or the preceding fiscal year,
whichever is the highest total compensation, subject to applicable withholding;
provided, however, that the Employee may elect to have payment of any such
amounts be made on a schedule of Employee’s own choosing, provided that such
schedule shall be completed no later than two years from the date of Employee’s
termination of employment.

 

3.                                       By
adding a new Section 18 to read as follows:

 

18.           Provisions
Regarding Code §409A.

 

(a)                                  If
at the time of the Employee’s termination of employment for reasons other than
death he is a “Key Employee” as determined in accordance with the procedures
set forth in Treas. Reg. §1.409A-1(i), any amounts payable to the Employee
pursuant to this Agreement that are subject to Section 409A of the
Internal Revenue Code shall not be paid or commence to be paid until six months
following the Employee’s termination of employment, or if earlier, the Employee’s
subsequent death.

 

(b)                                 Reimbursements
or in-kind benefits provided under this Agreement that are subject to Section 409A
of the Internal Revenue Code are subject to the following restrictions:  (1) the amount of expenses eligible for 

 

 

reimbursements, or in-kind benefits provided, to the
Employee during a calendar year shall not affect the expenses eligible for
reimbursement or the in-kind benefits provided in any other calendar year, and (2) reimbursement
of an eligible expense shall be made as soon as practicable, but in no event
later than the last day of the calendar year following the calendar year in
which the expense was incurred.

 

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

 

	
   

  	
  AAR
  CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
  President
  and Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [EXECUTIVE]

  
	
   

  	
   

  
	
   

  	
   

  

 

2

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