Document:

Exhibit 10.13

 

2010 Form

 

AAR CORP.

 

Performance Restricted Stock
Agreement

(“Agreement”)

 

Subject
to the provisions of the AAR CORP. Stock Benefit Plan and the Long-Term
Incentive Plan for Fiscal 20     (together, the “Plan”),
the terms of which are hereby incorporated by reference, and in consideration
of the agreements of the Grantee herein provided, AAR CORP., a Delaware
corporation (“Company”), hereby grants to the Grantee a performance restricted
stock award (“Award”), effective       ,
20       (“Date of Award”), for the number of
shares of common stock (“Common Stock”) of the Company, $1.00 par value (“Award
Shares”) set forth in the Company’s notification of Award grant letter to the
Grantee dated       ,
20       and incorporated herein by reference,
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
Award and this Agreement on Smith Barney’s web site
(www.benefitaccess.com).  If the Grantee
does not accept the Award and this Agreement within 30 days from the date of
the notification of the Award, the Award referenced herein shall expire unless
the acceptance date is extended in writing signed by the Company.

 

2.       Performance Condition.  The Award is
conditioned upon the Company meeting the cumulative net income performance goal
target for the three-year performance period beginning June 1,
20    , and ending May 31, 20    ,
as set forth in the Long-Term Incentive Plan for Fiscal
20    .  If the
Company does not meet the cumulative net income performance goal target at the
threshold level set forth in the Long-Term Incentive Plan for Fiscal
20    , the Grantee shall forfeit to the Company all Award
Shares.  If the Company meets the net
income performance goal target at or above the threshold level but less than
the target level, the Grantee shall forfeit that number of Award Shares as
determined under the Long-Term Incentive Plan for Fiscal
20      . 
The restrictions also shall be released with respect to all Award Shares
at the end of the performance period (regardless of whether the net income
performance goal is met), if during the performance period the Company’s Common
Stock satisfies the First Trigger, as defined in the Long-Term Incentive Plan
for Fiscal 20      .

 

3.       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”).

 

4.       Release of Restrictions. Subject to the provisions of
paragraphs 2 and 5, the restrictions described in paragraph 3 above shall be
released with respect to all Award Shares on May 31,
20    , except as follows:

 

(a)           In General.  Subject to the provisions of paragraph 2, if
the Grantee’s employment with the Company and all subsidiaries of the Company
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 3 hereof.

 

(b)           Retirement, Death or
Disability.  Subject to the
provisions of paragraph 2, if the Grantee’s employment with the Company and all
subsidiaries of the Company terminates by reason of Retirement, Death or
Disability 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 4 as to all Award
Shares.  For this purpose, (i) “Retirement”
means the Grantee’s voluntary termination of employment, or his termination of
employment by the Company or a subsidiary without Cause (as defined in the
Plan), when he has (a) attained age 65 or (b) attained age 55 and his
age plus the number of his consecutive years of service with the Company and
subsidiaries is at least 75; and  (ii) “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.

 

(c)           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 term of employment, the
Grantee shall forfeit to the Company all Award Shares not previously released
from the restrictions of paragraph 3 hereof.

 

5.       Change in Control. In the event of a Change in Control
of the Company, whether or not such change has the prior written approval of
the Continuing Directors, the Grantee shall be entitled to that number of Award
Shares that would be available if the cumulative net income performance goal
were met at the target level, and the Restrictive Period shall terminate as to
all such Award Shares.

 

6.       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.

 

7.       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.

 

8.       Shares.  In aid
of the restrictions set forth in paragraph 3, the Grantee will be required to
execute a stock power in favor of the Company which will be cancelled upon
release 

 

2

 

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 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.

 

9.       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.

 

10.     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.

 

11.     Withholding Taxes. 
The Grantee shall pay to the Company an amount sufficient to satisfy all
minimum tax withholding requirements, including those arising under federal,
state and local income tax laws, prior to the delivery of any Award
Shares.  Payment of the minimum
withholding requirement may be made by one or more of the following
methods:  (i) in cash, (ii) in
cash received from a broker-dealer to whom the Grantee has submitted
irrevocable instructions to deliver the amount of withholding tax to the
Company from the proceeds of the sale of shares of Common Stock subject to the
Award, (iii) by delivery to the Company of other Common Stock owned by the
Grantee that is acceptable to the Company, valued at its fair market value on
the date of payment, (iv) by certifying to ownership by attestation of
such previously owned Common Stock, or (v) by having shares of Common
Stock withheld from the Award Shares otherwise distributable to the
Grantee.  Payment shall be made pursuant
to the on-line procedures set forth on the AAR Stock Benefit Plan online web
site through Smith Barney (www.benefitacess.com).

 

12.     Postponement of Distribution.  Notwithstanding anything herein to the
contrary, the distribution of any portion of the Award Shares shall be subject
to action by the Board taken at any time in its sole discretion (i) to
effect, amend or maintain any necessary registration of the Plan or the Award
Shares distributable in satisfaction of this Award under the Securities Act of
1933, as amended, or the securities laws of any applicable jurisdiction, (ii) to
permit any action to be taken in order to (a) list such Award Shares on a
stock exchange if the Common Stock is then listed on such exchange or (b) comply
with restrictions or regulations incident to the maintenance of a public market
for its Shares of Common Stock, including any rules or regulations of any
stock exchange on which the Award Shares are listed, or (iii) to determine
that such Award Shares and the Plan are exempt from such registration or that
no action of the kind referred to in (ii)(b) above needs to be taken; and
the Company shall not be obligated by virtue of any terms and conditions of
this Award or any provision of this Agreement or the Plan to issue or release
the Award Shares in violation of the Securities Act of 1933 or the law of any
government 

 

3

 

having jurisdiction thereof.  Any such postponement shall not shorten the
term of any restriction attached to the Award Shares and neither the Company
nor its directors or officers shall have any obligation or liability to the
Grantee or to any other person as to which issuance under the Award Shares was
delayed.

 

13.     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)           Capitalized terms used herein and not defined herein will
have the meanings set forth in the Plan.

 

(c)           Nothing in the Award shall confer on the Grantee any right
to be or to continue in the employ of the Company or any of its subsidiaries or
shall interfere in any way with the right of the Company or any of its
subsidiaries to terminate the employment of the Grantee at any time for any reason
or no reason.

 

(d)           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 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.

 

(e)           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.

 

(f)            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.

 

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

 

*****************

 

4

 

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 matches that
  shown in the Award grant letter you received from the Company). 

  
	
   

  	
   

  	
   

  
	
  Step
  2:

  	
   

  	
  Read
  and review the documentation. 

  
	
   

  	
   

  	
   

  
	
  Step
  3:

  	
   

  	
  Confirm
  the review/acceptance of your Award and this Agreement. 

  
	
   

  	
   

  	
   

  
	
  Step
  4:

  	
   

  	
  Receive
  an online confirmation of your acceptance.

  

 

5Exhibit 10.15

 

2010 Form

 

AAR 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 Award and this Agreement on Smith Barney’s web site
(www.benefitaccess.com). If the Grantee does not accept the Award and this
Agreement within 30 days from the date of the notification of the Award, 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.

 

(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 paragraph 2 hereof.

 

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.

 

2

 

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 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.           Postponement of Distribution.  Notwithstanding anything herein to the
contrary, the distribution of any portion of the Award Shares shall be subject
to action by the Board taken at any time in its sole discretion (i) to
effect, amend or maintain any necessary registration of the Plan or the Award
Shares distributable in satisfaction of this Award under the Securities Act of
1933, as amended, or the securities laws of any applicable jurisdiction, (ii) to
permit any action to be taken in order to (a) list such Award Shares on a
stock exchange if the Common Stock is then listed on such exchange or (b) comply
with restrictions or regulations incident to the maintenance of a public market
for its Shares of Common Stock, including any rules or regulations of any
stock exchange on which the Award Shares are listed, or (iii) to determine
that such Award Shares and the Plan are exempt from such registration or that
no action of the kind referred to in (ii)(b) above needs to be taken; and
the Company shall not be obligated by virtue of any terms and conditions of
this Award or any provision of this Agreement or the Plan to issue or release
the Award Shares in violation of the Securities Act of 1933 or the law of any
government having jurisdiction thereof. 
Any such postponement shall not shorten the term of any restriction
attached to the Award Shares and neither the Company nor its directors or
officers shall have any obligation or liability to the Grantee or to any other
person as to which issuance under the Award Shares was delayed.

 

3

 

11.           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)           Capitalized terms used
herein and not defined herein will have the meanings set forth in the Plan.

 

(c)           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 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.

 

(d)           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.

 

(e)           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.

 

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)

 

Step 2:                                    Read and review
the documentation.

 

Step 3:                                    Confirm the
review/acceptance of your Award and this Agreement.

 

Step 4:                                    Receive an
online confirmation of your acceptance.

 

4

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