Document:

Exhibit 10.1

 

SIXTH AMENDMENT TO THE

AAR CORP. STOCK BENEFIT PLAN

 

WHEREAS, AAR CORP. (the “Company”), maintains the AAR CORP.
Stock Benefit Plan, amended and restated effective October 1, 2001 and
further amended from time to time (the “Plan”); and

 

WHEREAS, the Company has reserved the right to amend the
Plan and now deems it appropriate to do so.

 

NOW, THEREFORE, the Company hereby amends Section 3.2
of the Plan as follows, effective as of January 27, 2007:

 

“3.2         The Committee shall
have plenary authority with respect to Key Employees, subject to the provisions
of the Plan, to determine when and to whom Awards shall be granted, the Term of
each Award, the number of Shares covered by it, the effect of participation by
the Grantee in other plans, and any other terms and conditions of each such
Award.  The number of Shares, the Term
and other terms and conditions of a particular kind of Award need not be the
same even as to Awards made at the same time. 
The Committee’s actions in making Awards and fixing their size, Term,
and other terms and conditions shall be conclusive on all persons.”

 

IN WITNESS WHEREOF, this Sixth Amendment has
been executed as of the 18th day of October, 2007.

 

 

	
   

  	
  AAR
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy O. SkellyExhibit 10.2

 

 

SECOND AMENDMENT TO

AAR CORP. SUPPLEMENTAL KEY EMPLOYEE RETIREMENT PLAN

 

(As Amended and Restated Effective January 1, 2005)

 

WHEREAS, AAR CORP., a Delaware corporation (the “Company”),
maintains the AAR CORP. Supplemental Key Employee Retirement Plan, as amended
and restated effective January 1, 2005 (the “Plan”); and

 

WHEREAS, pursuant to Section 7.1, the Company has
reserved the right to amend the Plan and now deems it appropriate to do so.

 

NOW, THEREFORE, the Plan is hereby amended, effective as of October 17,
2007, as follows:

 

1.               By amending Section 1.11
to read as follows:

 

“1.11       “Normal Retirement
Date” means the first day of the calendar month coincident with or next
following the date a Participant attains age 65.”

 

2.               By amending the Vesting
provision in the Appendix to the Plan to read as follows:

 

With
respect to Additional Supplemental Company Contributions made prior to October 17,
2007:

 

“Vesting

 

An applicable Participant shall fully vest in the balance of his
Additional Supplemental Company Account upon the earlier of (i) the date
the Participant attains age 65 or (ii) the date the Participant attains
age 57 with 15 years of Vested Service (as defined in the Qualified Profit
Sharing Plan).

 

With
respect to Additional Supplemental Company Contributions made after October 17,
2007:

 

“Vesting

 

An applicable Participant shall fully vest in the balance of his
Additional Supplemental Company Account upon the earlier of (i) the date
the Participant attains age 65 or (ii) the date Participant attains age 55
and the Participant’s age (measured in full years) plus Years of Vested Service
(as defined in the Qualified Profit Sharing Plan) equal 75.”

 

 

 

IN WITNESS WHEREOF, the Company has caused this
Second Amendment to be executed on its behalf, by its officers, duly
authorized, on this 18th day of October 2007.

 

	
   

  	
  AAR
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Timothy O. Skelly

  
	
   

  	
   

  	
  Timothy
  O. Skelly, Vice PresidentExhibit 10.1

 

NINTH AMENDMENT AGREEMENT AND ALLONGE

 

THIS NINTH AMENDMENT AGREEMENT AND
ALLONGE (this “Agreement”) is made effective as of the 31st
day of March, 2008, by and among Bank of
America, N.A., a national banking association, with an office located at 111 Westminster
Street, Providence, Rhode Island (the “Lender”), and Summer Infant (USA), Inc., a Rhode Island corporation, formerly known as SII Acquisition, Inc., as
successor by merger with Summer Infant, Inc.
(“SII”), Summer Infant Europe Limited, a
private company limited by shares organized
under the laws of England and Wales with registered number 04322137 (“SIE”), and Summer Infant
Asia Limited, a Hong Kong corporation (“SIA”),
all with a principal place of business located at 1275 Park East Drive, Woonsocket,
Rhode Island (SII, SIE, and SIA herein individually referred to as a “Borrower”
and collectively referred to as the “Borrowers”).

 

PURPOSE

 

A.            Lender
and Borrowers entered into that certain Revolving Credit Agreement dated July 19, 2005 (the “Loan Agreement”) with respect
to a revolving line of credit (the “Revolving Loan”)
from Lender to Borrowers providing borrowing availability up to
$7,500,000, which Loan Agreement was heretofore amended pursuant to (i) that
certain Amendment Agreement and Allonge between Lender and Borrowers dated as
of December 29, 2005 (the “First Amendment”), which First Amendment increased the borrowing availability
under the Revolving Loan to $11,000,000, (ii) that certain Second
Amendment Agreement and Allonge between Lender and Borrowers dated as of April 30,
2006 (the “Second Amendment”), which Second
Amendment extended the maturity of the Revolving Loan, (iii) that certain
Third Amendment Agreement and Allonge between Lender and Borrowers dated
as of July 31, 2006 (the “Third Amendment”), which Third Amendment
increased the  borrowing availability under 

 

 

the Revolving Loan to
$13,000,000 and further extended the maturity
of the Revolving Loan, (iv) that certain Fourth Amendment Agreement and
Allonge between Lender and Borrowers dated as of December 21, 2006 (the “Fourth
Amendment”), which Fourth Amendment increased the borrowing availability under
the Revolving Loan to $17,000,000, (v) that
certain Assumption and Modification Agreement - Revolving
Debt dated March 6, 2007 among Summer Infant, Inc., SII, and Lender (the “Fifth Amendment”), by which SII, as successor by merger to Summer
Infant, Inc., assumed the obligations of
Summer Infant, Inc. under the Loan Agreement, the Note, and the
Security Documents, and Lender consented to the merger between Summer Infant, Inc.
and SII, (vi) that certain
Sixth Amendment Agreement and Allonge between Lender and Borrowers dated as of June 27,
2007 (the “Sixth Amendment”), which Sixth Amendment increased the
borrowing availability under the Revolving
Loan to $18,500,000 and further extended the maturity of the Revolving Loan, (vii) that certain Seventh Amendment
Agreement and Allonge between Lender and Borrowers dated as of October 1,
2007 (the “Seventh Amendment”), which
Seventh Amendment increased the
borrowing availability under the Revolving Loan to $22,000,000 and further extended the maturity of
the Revolving Loan, and (viii) that certain Eighth Amendment Agreement and
Allonge between Lender and Borrowers dated as of January 31, 2008 (the “Eighth
Amendment”), which Eighth Amendment increased the borrowing availability
Revolving Loan to $25,000,000. All capitalized terms not otherwise
defined herein shall have the meanings set forth in the Loan Agreement,

 

B.            The Revolving Loan Advances made
under the Revolving Loan and Borrowers’
obligations thereunder are evidenced by that certain Secured Promissory Note of the Borrowers payable to the order of the Lender
in the principal amount of $7,500,000
dated July 19, 2005, which principal amount was (i) increased to
$11,000,000 pursuant to the terms of 

 

 

the First Amendment, (ii) further
increased to $13,000,000 pursuant to the terms
of the Third Amendment, (iii) further increased to $17,000,000 pursuant to the terms of the Fourth Amendment, (iv) further
increased to $18,500,000 pursuant to the terms of the Sixth Amendment, (v) further
increased to $22,000,000 pursuant to the terms of the Seventh
Amendment, (vi) further increased to $25,000,000 pursuant to the terms of
the Eighth Amendment (said Secured Promissory Note, as amended by the First Amendment, the Second Amendment, the Third
Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth
Amendment, the Seventh Amendment and the Eighth Amendment, herein collectively
the “Note”).

 

C.            Borrowers
and Lender desire to further increase the borrowing availability under
the Revolving Loan and to make other amendments as more particularly set forth
herein.

 

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

 

1.             The definition of “Borrowing Limit”
in Section 1.01 of the Loan Agreement,
as heretofore amended, is hereby further amended in its entirety to read as follows:

 

““Borrowing Limit” means an amount which shall not exceed the lesser of (a) Thirty Million Dollars ($30,000,000) or (b) the
aggregate Dollar Equivalent of (i) eighty-five percent (85%)  of Total Eligible Toys R Us Receivables
outstanding from time to time, plus (ii) eighty-five percent (85%)
of Total Eligible Target Receivables outstanding from
time to time, plus (iii) eighty percent
(80%)
of Eligible Domestic Receivables outstanding from time to
time, plus (iv) sixty
percent (60%) of the value of Eligible Domestic Inventory, plus (v) fifty
percent (50%) of the value of Eligible Foreign Inventory, plus (vi) fifty-five
percent (55%) of the value of Intransit Inventory, plus (vii) sixty
percent (60%) of Eligible Foreign Receivables
outstanding from time to time; provided, however, the amount available for advances against Eligible
Domestic Inventory, Intransit Inventory,
and Eligible Foreign Inventory shall not exceed the lesser of (A) Fifteen
Million Dollars ($15,000,000) or (B) one-half of the borrowing availability
under (b) (i) through (vii) above; less one hundred percent
(100%) of the undrawn amount of outstanding Letters of Credit.  Notwithstanding anything in this Agreement to
the contrary, in the event that Borrowers use a Revolving Loan Advance to fund
the Basic Comfort Acquisition, the Borrowing Limit shall be Thirty Million
Dollars ($30,000,000) without regard to the limitations set forth in subsection
(b) of this definition.”

 

 

2.             The definition of “Termination Date” in Section 1.01
of the Loan Agreement and in the Note, as heretofore amended, is hereby further
amended to read as follows:

 

““Termination Date” means April 14,
2008.”

 

3.             The following definitions are hereby added to Section 1
of the Loan Agreement in their entirety:

 

“Basic Comfort Acquisition” means
the acquisition of the Basic Comfort Assets in accordance with the terms of the
Basic Comfort Purchase Agreement.

 

“Basic Comfort Assets” means the
Purchased Assets as that term is described and defined in the Basic Comfort
Purchase Agreement.

 

“Basic Comfort Earn Out” means those
earn-out payments due to Basic Comfort Seller from SII pursuant to the terms of
the Basic Comfort Purchase Agreement in an amount calculated pursuant to Section 1.5
of the Basic Comfort Purchase Agreement.

 

“Basic Comfort Purchase Agreement”
means that certain Asset Purchase Agreement dated as of March 25, 2008, by
and between Basic Comfort Seller, as seller, John D. Lord and Belinda S. Lord,
as stockholders of the seller, and SII, as buyer, as amended from time to time,
in form and substance reasonably satisfactory to Lender.

 

“Basic Comfort Seller” means Basic
Comfort, Inc., a Colorado corporation.

 

“Material Adverse Effect” means (a) a
material adverse change in, or a material adverse effect upon, the operations,
business, properties, liabilities (actual or contingent), condition (financial
or otherwise) or prospects of Borrowers taken as a whole; (b) a material
impairment of the ability of any Borrower to perform its obligations under any
Loan Document to which it is a party; or (c) a material adverse effect
upon the legality, validity, binding effect or enforceability against any
Borrower of any Loan Document to which it is a party.

 

4.             The following Section 5.02 is hereby added to Article V
of the Loan Agreement in its entirety:

 

“5.02  Conditions
to Advance for Basic Comfort Acquisition.  The obligation of the Lender to make a
Revolving Loan Advance in respect to the Basic Comfort Acquisition is subject
to the satisfaction of the following conditions on the closing date of the
Basic Comfort Acquisition (unless otherwise waived by Lender), which date shall
not be later than March 31, 2009:

 

(a)           All
conditions set forth in Article IV and Section 5.01 shall have been
satisfied;

 

(b)           Borrowers
shall have executed and delivered to Lender (or shall have caused to be
executed and delivered to Lender by the appropriate Persons) 

 

 

the
following (each of which shall be in form and substance satisfactory to
Lender):

 

(i)            True
and correct copies of all material consents, contracts, licenses, instruments
and other documents relating to the Basic Comfort Acquisition;

 

(ii)           Certificates
of insurance evidencing all insurance coverage and policy provisions required
in this Agreement and the Security Agreement;

 

(iii)          A
pay-off letter (including therein provisions reasonably acceptable to Lender
for the delivery or filing of appropriate UCC termination statements and
mortgage and lien releases) from all lenders and secured creditors of the Basic
Comfort Seller;

 

(iv)          A
properly completed requisition for the advance in accordance with the
requirements of this Agreement; and

 

(v)           Such
other supporting documents and certificates as Lender may reasonably request.

 

(c)           All
legal matters incident to the transactions hereby contemplated shall be reasonably
satisfactory to special counsel for Lender.

 

(d)           Neither
an Event of Default nor a Default shall have occurred and be then continuing,
or shall result after taking into consideration the effect of the requested
Revolving Loan Advance and the Basic Comfort Acquisition.

 

(e)           Borrowers
shall have paid to Lender all reasonable fees required to be paid on the
closing date of the Basic Comfort Acquisition pursuant to this Agreement.

 

(f)            In
addition to the foregoing requirements:

 

(i)            The
transactions contemplated by the Basic Comfort Purchase Agreement shall have
been previously consummated or shall be consummated contemporaneously with such
Revolving Loan Advance in accordance with the terms thereof and, in any event,
in a manner reasonably satisfactory to Lender, including, without limitation,
the satisfaction in full (simultaneously with, and from the proceeds of, the
Revolving Loan Advance or otherwise) of all Indebtedness of the Basic Comfort
Seller secured by the assets and properties transferred under the Basic Comfort
Purchase Agreement which is not being assumed by the buyer.

 

(ii)           Lender
shall have received reasonable evidence of the Borrowers’ ability to consummate
receipt at closing of all permits, 

 

 

approvals
and consents, if any, required with respect to the Basic Comfort Acquisition
and any other related transaction contemplated by this Agreement.

 

(iii)          Lender
shall have received copies of any legal opinions delivered by the Basic Comfort
Seller pursuant to the Basic Comfort Purchase Agreement in connection with the
Basic Comfort Acquisition.

 

(iv)          There
shall not have occurred, in the Agent’s reasonable opinion, any change in the
financial condition, management or business operations, or the assets or
business of, the Basic Comfort Seller since the Closing Date that could
reasonably be expected to have a Material Adverse Effect.

 

(g)           The
aggregate amount of the Revolving Loan Advance funded in connection with the
Basic Comfort Acquisition shall not be greater than $5,000,000, which advance
shall be used solely to pay a portion of the purchase price of the Basic
Comfort Assets and related closing costs in the Basic Comfort Acquisition.

 

(h)           Lender
shall have completed a due diligence investigation of the Basic Comfort Seller,
and its Subsidiaries (if any) in scope, and with results, satisfactory to
Lender, and shall have been given such access to the management, records, books
of account, contracts and properties of the Basic Comfort Seller and its
Subsidiaries and shall have received such financial, business and other
information regarding each of the foregoing Persons and businesses as they
shall have requested, and such other due diligence reports, audits, and
certifications as they may reasonably request. 
Lender acknowledges that it has received and approved a report prepared
by Grant Thornton with respect to the Basic Comfort Acquisition.”

 

5.             The following subsection (e) is hereby added to Section 8.01
of the Loan Agreement in its entirety:

 

“(e)         Indebtedness pursuant to the Basic Comfort Seller
Earn Out, provided, however, that if a Default or Event of
Default exists at the time the Basic Comfort Earn Out becomes due, SII shall
exercise its option under the Basic Comfort Purchase Agreement to pay fifty
percent (50%) of the Basic Comfort Earn Out using common stock in Summer Infant, Inc.”

 

6.             The following Section 6.11 is hereby added to the
Loan Agreement in its entirety:

 

“6.11.     Closing
of Refinancing. 
Notwithstanding anything in this Agreement, the Note or any other Loan
Document to the contrary (including, without limitation, the definition of “Termination
Date”), Borrowers shall, prior to April 14, 2008, (a) close the
proposed syndicated loan transaction with Bank of America, N.A., as
administrative 

 

 

agent,
upon the terms and conditions set forth in that term sheet executed by SII on February 7,
2008; and (b) repay all Obligations of the Borrowers set forth in this
Agreement and the Note using proceeds of such syndicated loan transaction.”

 

7.             The reference to the
dollar symbol and amount “$25,000,000” in the upper right hand corner on page 1
of the Note is hereby deleted and the symbol and number “$30,000,000” is
substituted therefor and inserted in place thereof. The reference to the
principal amount of “Twenty-Five Million Dollars ($25,000,000)” in the eighth
and ninth lines of the first
paragraph on page 1 of the Note is hereby deleted and “Thirty Million
Dollars ($30,000,000)” is substituted therefor and inserted in place thereof.

 

8.             An original of this
Agreement shall be attached to and made a part of the Note.

 

9.             SII acknowledges and
agrees that the increase in the borrowing availability under the
Revolving Loan evidenced by this Agreement constitutes “Obligations,” as such term is defined in the Security Agreement, and
thus shall be secured thereby.  Section 1.23 of the Security Agreement
is hereby amended in its entirety to read as follows:

 

“1.23 “Promissory
Note” shall mean that certain Secured
Promissory Note of the Debtor, Summer Infant Europe Limited,
and Summer Infant Asia Limited payable to the order
of the Secured Party, dated July 19, 2005 and in the face amount of Seven Million Five Hundred Thousand Dollars ($7,500,000),
as increased in amount to Eleven Million Dollars
($11,000,000) pursuant to that certain Amendment Agreement
and Allonge among the Debtor, Summer Infant Europe Limited, Summer Infant Asia
Limited and the Secured Party dated December 29,
2005, as further increased in amount to Thirteen Million Dollars ($13,000,000) pursuant to that certain Third
Amendment Agreement and Allonge among
the Debtor, Summer Infant Europe Limited, Summer Infant Asia Limited and the Secured Party dated July 31, 2006, as
further increased in amount to Seventeen Million Dollars ($17,000,000)
pursuant to that certain Fourth Amendment Agreement
and Allonge among the Debtor, Summer Infant Europe Limited, Summer Infant Asia
Limited and the Secured Party dated December 21, 2006, as further increased in amount to Eighteen
Million Five Hundred Thousand Dollars
($18,500,000) pursuant to that certain Sixth Amendment Agreement and Allonge
among the Debtor, Summer Infant Europe Limited, Summer Infant Asia Limited and the Secured Party dated June 27,
2007, as further increased in amount
to Twenty-Two Million Dollars ($22,000,000) pursuant to that certain Seventh
Amendment Agreement and Allonge among the Debtor, Summer Infant Europe
Limited, Summer Infant Asia Limited and the Secured Party dated October 1, 2007, as further increased in
amount to Twenty-Five Million Dollars ($25,000,000) pursuant to that certain
Eighth Amendment Agreement and Allonge among the Debtor, Summer Infant 

 

 

Europe Limited, Summer
Infant Asia Limited and the Secured Party dated January 31, 2008, and as
further increased in amount to Thirty Million Dollars ($30,000,000) pursuant to
that certain Ninth Amendment Agreement and Allonge among the Debtor, Summer
Infant Europe Limited, Summer Infant Asia Limited and the Secured Party dated March 31,
2008.”

 

10.           All security for the
Revolving Loan and the Note now existing or hereafter granted to Lender, including without limitation
all security evidenced, granted or governed
by the Security Documents shall be security for the Revolving Loan and the Note
as amended by this Agreement.

 

11.           All references to the Loan Agreement, wherever, whenever
or however made or contained, are hereby
deemed to be references to the Loan Agreement, as modified by this Agreement. All references to the
Note, wherever, whenever or however made
or contained, are hereby deemed to be references to the Note, as modified by this
Agreement.

 

12.           By executing this
Agreement on behalf of Borrowers in the space designated below, the individual so signing represents and warrants to
Lender that he or she has full power and authority to execute this
Agreement and to bind Borrowers, and that
all corporate actions necessary to authorize and approve execution of this Agreement, and by such individual, have been
taken prior to the execution hereof.

 

13.           This Agreement shall be
binding upon and shall inure to the benefit of Borrowers and Lender, and their respective heirs, administrators,
executors, successors, and assigns.
This Agreement has been made in the State of Rhode Island and shall be
governed, construed, applied, and enforced in accordance with the laws of such
state without resort to its conflict of laws rules. Whenever possible, each
provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law; should any provision of this
Agreement be declared invalid for any reason in any jurisdiction, such
declaration shall have no effect upon the remaining portions of this
Agreement.  In addition, the entirety of
this Agreement shall 

 

 

continue
in full force and effect in all
jurisdictions and said remaining portions of this Agreement shall continue in full force and effect in the
subject jurisdiction as if this Agreement had been executed with the
invalid portions thereof deleted.

 

14.           Except as amended
hereby, all other terms and provisions of the Loan Agreement, the Note, and the Security Agreement
are hereby ratified and confirmed.

 

15.           The Borrowers hereby
warrant that all of the representations and warranties contained in the Loan
Agreement are true and correct as of the date hereof and that no Event of Default (as defined in the Loan
Agreement) has occurred and is continuing.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

 

IN WITNESS WHEREOF, the parties hereto have
caused this Ninth Amendment Agreement and Allonge to be executed as of the date
first above written.

 

 

	
   

  	
  BANK
  OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/David
  Angell

  
	
   

  	
   

  	
      David
  Angell, Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUMMER
  INFANT (USA), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/Joseph
  Driscoll

  
	
   

  	
   

  	
      Joseph
  Driscoll, CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUMMER
  INFANT EUROPE LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
       /s/Joseph
  Driscoll

  
	
   

  	
   

  	
      Joseph
  Driscoll, CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUMMER
  INFANT ASIA LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
      /s/Joseph
  Driscoll

  
	
   

  	
   

  	
      Joseph
  Driscoll, CFO

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