Document:

Exhibit10.10-Brobst-ChangeinControl

Exhibit 10.10
CHANGE IN CONTROL AGREEMENT
This Change in Control Agreement (“Agreement”) is effective as of May 28, 2015 “Effective Date”), by and among Orrstown Financial Services, Inc., a Pennsylvania corporation (“Orrstown”), Orrstown Bank, a bank and trust company organized under the Pennsylvania Banking Code of 1965 and a wholly owned subsidiary of Orrstown (the “Bank”) (Orrstown and the Bank are hereinafter collectively referred to as the “Employer”) and Barbara E. Brobst, an adult individual (“Executive”).  
BACKGROUND
The Employer and Executive have entered into that certain Employment Agreement, of even date herewith (the “Employment Agreement”) which is incorporated by reference and made a part of this Agreement.  In connection therewith, the Employer and Executive also desire to enter into this Change in Control Agreement to provide certain rights and benefits to Executive in the event of any change of control of Orrstown.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein and intending to be legally bound hereby, the parties hereto agree as follows: 
ARTICLE I.  Term of Agreement 
1.1    Term.  This Agreement shall commence on the Effective Date and shall continue for a term of three (3) years; provided, however, that the term shall automatically extend for additional consecutive one (1)-year periods on each anniversary of the Effective Date unless either party gives written notice of nonrenewal to the other at least sixty (60) days prior to such anniversary.  References in the Agreement to the "Term" shall refer to the initial three-year term of this Agreement and any extensions thereof.  
ARTICLE II.  Payments in Connection with a Change in Control. 
2.1    Definitions. 
(a)    For purposes of this Agreement, a “Change in Control” shall be deemed to occur if:  
(i)    Any person or group of persons acting in concert, shall have acquired ownership of more than 50 percent of the total fair market value or total voting power of the stock of Orrstown; or 
(ii)    The composition of the Board of Directors of Orrstown shall have changed such that, during any period of 12 consecutive months during the Term of this Agreement, the majority of such Board is replaced by directors whose appointment or election is not endorsed by a majority of the members of the Board of Directors of Orrstown, who were in office before the appointment or election; or 

(iii)    Any person or group of persons acting in concert acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition) ownership of 30 percent or more of the total voting power of the stock of Orrstown; or 
(iv)    Any person or group of persons unrelated to Orrstown acting in concert acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition) ownership of a portion of Orrstown’s assets that has a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of Orrstown before the acquisition or acquisitions, with the asset values determined without regard to any liabilities associated with such assets.  
(b)    For purposes of Section 2.1(a)(i) and (iii) above, a person shall be deemed to be the beneficial owner of any shares the person is deemed to own under the stock attribution rules of Section 318(a) of the Internal Revenue Code of 1986, including any amendments thereto or any successor tax codes thereof (the “Code”). 
(c)    A “Change in Control Period” shall mean the period commencing 90 days before a Change in Control and ending two (2) years after such Change in Control.
(d)    Other capitalized terms herein which are not otherwise defined, shall have such meaning as defined in the Employment Agreement.   
2.2    Amount of Payments.  Except as provided in Section 2.2(d), and in lieu of amounts payable under Section 4 of the Employment Agreement, the Employer will pay Executive the amounts specified in the circumstances below in connection with a Change in Control. 
(a)    If Executive’s employment is terminated for any reason by the Employer during the Change in Control Period, or by Executive for any reason within six (6) months following a Change in Control, the Employer will pay, or cause to be paid, to Executive: 
(i)    an amount equal to 2.99 times the sum of (A) the Base Salary immediately before the Change in Control and (B) the highest annual cash bonus and/or other incentive compensation awarded to Executive over the past three years in which cash bonus or other incentive compensation was awarded (all exclusive of any election to defer receipt of compensation Executive may have made); and 
(ii)    an amount (the “Unvested Company Contribution”) equal to that portion, if any, of the Employer’s contribution to Executive’s 401 (k), profit sharing, deferred compensation or other similar individual account plan which is not vested as of the date of termination of Executive’s employment (the “Date of Termination”), plus an amount which, when added to the Unvested Company Contribution, would be sufficient after Federal, state and local income taxes (based on the tax returns filed by Executive most recently prior to the Date of 

Termination) to enable Executive to net an amount equal to the Unvested Company Contribution; and 
(iii)   the Employer shall pay Executive up to $10,000 for executive outplacement services utilized by Executive upon the receipt by the Employer of written receipts or other appropriate documentation. 
Except for the payment provided in (iii) above, such payments shall be made in one lump sum within fifteen (15) business days after termination of Executive’s employment following a Change in Control. 
(b)    Except as provided in Section 2.2(d), if Executive’s employment is terminated by Employer for any reason in connection with a Change in Control within the Change in Control Period, or by Executive for any reason within six (6) months following a Change in Control, Executive shall continue to receive all employee benefits available to Executive pursuant to Section 3.2 of the Employment Agreement that Executive was receiving immediately before such termination, as provided in Section 4.2(a) of the Employment Agreement, also the benefits available to Executive immediately before such termination pursuant to Section 3.4 of the Employment Agreement (Expense Reimbursement).  Executive shall continue to receive all such benefits for a period of two (2) years after the date of a termination described in Section 2.2(a).  Executive shall pay the same percentage of the total cost of coverage under the applicable employee benefit plans as Executive was paying when Executive’s employment terminated.  The total cost of Executive’s continued coverage shall be determined using the same rates for health, life and/or disability coverage that apply from time to time to similarly situated active employees.  Notwithstanding the foregoing, in lieu of ongoing coverage under the group term life insurance program, the Employer shall pay Executive a lump sum payment within thirty (30) days after Executive’s termination date in an amount equal to 150% of the Employer’s actual premium cost of providing group term life insurance coverage to Executive for the three year period following Employee’s termination of employment date.  In addition, the Employer shall pay to the Executive, in a single lump sum as soon as practicable after Executive’s termination of employment in the Change in Control Period an aggregate amount equal to two (2) additional years of the Employer retirement plan contributions by the Employer under each tax qualified or nonqualified defined contribution type of retirement plan in which the Executive was a participant immediately prior to Executive’s termination of employment and equal to the actuarial present value of two (2) additional years of benefit accruals under each tax qualified or nonqualified defined benefit type of retirement plan in which Executive was a participant immediately prior to Executive’s termination or resignation, calculated in each case as if Executive had continued as a plan participant for the number of additional years indicated below, Executive’s annual compensation for plan purposes in the most recently completed plan year of each plan continued unchanged through these additional years, and the retirement plans continued to operate unchanged through the additional years.  The actuarial equivalence factors and assumptions generally in use under any defined benefit plan shall be applied in determining lump sum present values of any defined benefit plan additional accruals payable hereunder. The period of continued health coverage required by Section 

4980(B)(f) of the Internal Revenue Code of 1986, as amended (“COBRA”) shall run concurrently with the coverage provided herein. 
(c)    Upon the occurrence of a Change of Control, the vesting and exercise rights of all stock options, shares of restricted stock, and other equity-based compensation units held by Executive pursuant to any stock option plan, stock option agreement, restricted stock agreement, or other long term incentive plan shall be governed by the terms of such plan or agreement, but in the event the plan or agreement is silent on the subject of change in control, all such options, shares, and units shall immediately become vested and exercisable as to all or any part of the shares and rights covered thereby. 
(d)    Executive is to receive no payments under Section 2.2(a) and no benefits under Section 2.2(b) if the Executive’s employment is terminated during a Change in Control Period by the death or Disability of Executive or for Cause.  In an instance of death or Disability of the Executive, however, Executive and Executive’s dependents, beneficiaries and estate shall receive any benefits payable to them under the Employment Agreement. 
(e)    References in this Section 2.2 to “the Employer” shall include the successors of the Employer, as applicable.
(f)    If any benefit or payment from the Company to Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment”) shall be determined to be an “Excess Parachute Payment”, as defined in Section 280G(b)(1) of the Internal Revenue Code of 1986, as amended (the “Code”), then the aggregate present value of amounts or benefits payable to Executive pursuant to this Agreement (“Agreement Payments”) shall be reduced (but not below zero) to the Reduced Amount.  The “Reduced Amount” shall be the greater of (i) the highest aggregate present value of Agreement Payments that can be paid without causing any payments or benefits hereunder to be an Excess Parachute Payment or (ii) the largest portion, up to and including the total, of the Agreement Payments that after taking into account all applicable state and federal taxes (computed at the highest applicable marginal rate) including any taxes payable pursuant to Section 4999 of the Code, results in a greater after-tax benefit to Executive than the after-tax benefit to Executive of the amount calculated under (i) hereof (computed at the highest applicable marginal rate). For purposes of this Section 2.2, present value shall be determined in accordance with Section 280G(d)(4) of the Code.
2.3    Revisions of Restrictive Covenants.  If Executive’s employment is terminated in connection with a Change in Control, the Restricted Period under the Employment Agreement shall be revised automatically to equal the greater of six (6) months or the period extending from the date of the termination of active employment to the first anniversary of the Change in Control. 
2.4    Transition Services.  For one (1) year following cessation of employment after any Change in Control, Executive agrees to remain available to provide the Employer with transition assistance on matters with which Executive was involved during his or her 

employment.  Executive shall render such assistance in a timely manner on reasonable notice from the Employer.  Executive shall not be entitled to any separate compensation for the services described in this paragraph (other than reimbursement for reasonable out of pocket expenses actually incurred).  The Employer agrees to provide reasonable advance notice of the need for Executive’s assistance and shall exercise reasonable efforts to schedule and limit such matters so as to avoid interfering with Executive’s personal and other professional obligations.
ARTICLE III.  Miscellaneous. 
3.1    Invalidity.  If any provision hereof is determined to be invalid or unenforceable by a court of competent jurisdiction, Executive shall negotiate in good faith to provide the Employer with protection as nearly equivalent to that found to be invalid or unenforceable and if any such provision shall be so determined to be invalid or unenforceable by reason of the duration or geographical scope of the covenants contained therein, such duration or geographical scope, or both, shall be considered to be reduced to a duration or geographical scope to the extent necessary to cure such invalidity. 
3.2    Assignment: Benefit.  This Agreement shall not be assignable by Executive, and shall be assignable by the Employer only to any affiliate or to any person or entity which may become a successor in interest (by purchase of assets or stock, or by merger, or otherwise) to the Employer in the business or a portion of the business presently operated by it. Subject to the foregoing, this Agreement and the rights and obligations set forth herein shall inure to the benefit of, and be binding upon, the parties hereto and each of their respective permitted successors, assigns, heirs, executors and administrators, including the restrictive covenants of this Agreement. 
3.3    Notices.  All notices hereunder shall be in writing and shall be sufficiently given if hand-delivered, sent by documented overnight delivery service or registered or certified mail, postage prepaid, return receipt requested or by telegram, fax or telecopy (confirmed by U. S. mail), receipt acknowledged, addressed as set forth below or to such other person and/or at such other address as may be furnished in writing by any party hereto to the other.  Any such notice shall be deemed to have been given as of the date received, in the case of personal delivery, or on the date shown on the receipt or confirmation therefor, in all other cases.  Any and all service of process and any other notice in any such action, suit or proceeding shall be effective against any party if given as provided in this Agreement; provided that nothing herein shall be deemed to affect the right of any party to serve process in any other manner permitted by law. 
(a)    If to the Employer: 
Orrstown Bank
77 East King Street 
Shippensburg, PA  17257
Attention: Director of Human Resources 

(b)    If to Executive: 
Barbara E. Brobst
122 Stonehedge Drive
Carlisle, PA 17015
3.4    Entire Agreement and Modification.  This Agreement and the Employment Agreement constitute the entire agreement between the parties hereto with respect to the matters contemplated herein and therein and supersedes all prior agreements and understandings with respect thereto.  Any amendment, modification, or waiver of this Agreement shall not be effective unless in writing and agreed and executed by the Employer and Executive.  Neither the failure nor any delay on the part of any party to exercise any right, remedy, power or privilege shall preclude any other or further exercise of the same or of any other right, remedy, power, or privilege with respect to any occurrence and such failure or delay to exercise any right shall be construed as a waiver of any right, remedy, power, or privilege with respect to any other occurrence. The Employer and Executive acknowledge and agree that the following restrictive covenants shall supersede and replace in their entirety the restrictive covenants in any Restricted Stock Share Grant Agreement between Orrstown and Executive, as follows:  Executive shall not, during the Employment Period and for a Restricted Period (as defined below) after Executive ceases to be employed by or provide service to Employer, directly or indirectly, be or become an officer, owner, shareholder, general or limited partner, director or employee or agent of, or a consultant to, or give financial or other assistance to, any person or entity considering engaging in commercial banking or the provision of financial products or services, or is so engaged, within an area having a seventy-five (75) mile radius from the headquarters of Employer at the time Executive ceases to be employed by Employer; provided such person or entity is engaged in a business or activity which is substantially similar to the business or activity in which Executive is engaged while employed by or providing service to Employer.  “Restricted Period” shall mean the longer of (i) six (6) months or (ii) the period extending from the date of the termination of active employment to the first anniversary of the Change in Control.
3.5    Governing Law, Forum.  This Agreement is made pursuant to, and shall be construed and enforced in accordance with, the laws of the Commonwealth of Pennsylvania (and United States federal law, to the extent applicable), without giving effect to otherwise applicable principles of conflicts of law.  All actions hereunder shall be filed in the appropriate courts located in Cumberland and Franklin Counties, Pennsylvania and Executive consents to venue and jurisdiction therein.
3.6    Headings; Counterparts.  The headings of sections and subsections in this Agreement are for convenience only and shall not affect its interpretation.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which, when taken together, shall be deemed to constitute but one and the same Agreement. 
3.7    Further Assurances.  Each of the parties hereto shall execute such further instruments and take such other actions as any other party shall reasonably request in order to effectuate the purposes of this Agreement. 

3.8    Attorneys’ Fees and Related Expenses.  All reasonable attorneys’ fees and related expenses incurred by Executive in connection with or relating to the review and negotiation of this Agreement or, if Executive prevails in connection with enforcing Executive’s rights under this Agreement, the enforcement by Executive of Executive’s rights under this Agreement, shall be paid in full by the Employer. 
3.9    Mitigation.  Executive shall not be required to mitigate the amount of any payment or benefit provided for herein by seeking employment or otherwise shall not be entitled to set-off against the amount of any payments made pursuant hereto with respect to any compensation earned by Executive arising from other employment. 
3.10    Indemnification.  Except to the extent inconsistent with the Employer’s  certificate of incorporation or bylaws, the Employer will indemnify Executive and hold Executive harmless to the fullest extent permitted by law with respect to Executive’s service as an officer and employee of the Employer and its subsidiaries, which indemnification shall be provided following termination of employment for so long as Executive may have liability with respect to Executive’s service as an officer or employee of the Employer and its  subsidiaries.  Executive will be covered by a directors’ and officers’ insurance policy with respect to Executive’s acts as an officer to the same extent as all other officers of the Employer under such policies.  
3.11    409A Safe Harbor.  Notwithstanding anything in this Agreement to the contrary, in no event shall the Employer be obligated to commence payment or distribution to the Executive of any amount that constitutes nonqualified deferred compensation within the meaning of Code Section 409A (“Section 409A”) earlier than the earliest permissible date under Section 409A that such amount could be paid without additional taxes or interest being imposed under Section 409A.  The Employer and Executive agree that they will execute any and all amendments to this Agreement as they mutually agree in good faith may be necessary to ensure compliance with the distribution provisions of Section 409A and to cause any and all amounts due under this Agreement, the payment or distribution of which is delayed pursuant to Section 409A, to be paid or distributed in a single sum payment at the earliest permissible date under Section 409A.  Without limiting the generality of the foregoing, in the event Executive is to receive a payment of compensation hereunder that is on account of a separation from service, such payment is subject to the provisions of Section 409A, and Executive is a key employee of the Employer, then payment shall not be made before the date that is six months after the date of separation from service (or, if earlier than the end of the six month period, the date of Executive’s death).  Amounts otherwise payable during such six month payment shall be accumulated and paid in a lump sum on the first day of the seventh month.  For purposes hereof, Executive is a key employee of the Employer if, on his date of separation from service, the Employer is publicly traded and he met the definition key employee found in Code Section 416(i)(1)(A)(i), (ii) or (iii) (disregarding Section 416(i)(5)) as of the last day of the calendar year preceding the date of separation.  
3.12    Release.  Notwithstanding any other provision of this Agreement, any severance or termination payments or benefits described are conditioned on Executive’s execution and delivery to the Employer of an effective general release and non-disparagement agreement in a 

form prescribed by the Employer substantially in conformity with such agreement attached hereto as Annex A and in a manner consistent with the requirements of the Older Workers Benefit Protection Act and any applicable state law, becoming effective by the 90th day following the Executive’s separation from service.  Such payments will commence following the date the release becomes effective, provided that if the 90 day period spans two calendar years, the payments will commence in the second calendar year.
3.13    Other Rights.  Nothing in this Agreement is intended to limit Executive’s right to (a) payment or reimbursement for welfare benefit claims incurred prior to the cessation of his/her employment under any group insurance plan, policy or arrangement of the Employer in accordance with the terms of such plan, policy or arrangement (b) elect COBRA benefits in accordance with the applicable law, or (c) receive a distribution of vested accrued benefits from any employee pension benefit plan in accordance with the terms of that plan.
3.14    Survival.  Notwithstanding anything to the contrary in this Agreement, the parties agree that the Employee’s obligations under Section 2.3 of this Agreement shall continue despite the expiration of the term of this Agreement or its termination.

3.15    Regulatory Limitations.  Notwithstanding anything herein contained to the contrary, any payments to Employee by the Employer, whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. §1828(k) and FDIC regulation 12 C.F.R. Part 359, Golden Parachute and Indemnification Payments.

[Signature page follows]

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

 Barbara E. Brobst___________________________
Name: (“Executive”) 

 /s/ Barbara E. Brobst                    
Signature:

ORRSTOWN FINANCIAL CORPORATION (“Orrstown”)

By:  /s/ Joel R. Zullinger____________________________        
Name:  Joel R Zullinger    
Title:    Chairman of the Board of Directors

ORRSTOWN BANK (the “Bank”)

By:   /s/ Joel R. Zullinger___________________________        
Name:  Joel R. Zullinger
Title:  Chairman of the Board of DirectorsExhibit 10.1

 

Execution Version

 

FIRST AMENDMENT

 

FIRST AMENDMENT, dated as of June 1, 2015 (this “Amendment”), to the Second Amended and Restated Credit Agreement, dated as of May 5, 2014 (the “Existing Credit Agreement”), among AIR LEASE CORPORATION, a Delaware corporation (the “Borrower”), the several lenders from time to time parties thereto (the “Lenders”), JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”) and the other parties thereto.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Existing Credit Agreement, the Lenders agreed to make, and have made, certain loans and other extensions of credit to the Borrower;

 

WHEREAS, the Borrower has requested that certain provisions of the Existing Credit Agreement be amended as set forth herein; and

 

WHEREAS, the Required Lenders are willing to agree to such amendments on the terms set forth herein;

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

SECTION 1.   Defined Terms.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Existing Credit Agreement.

 

SECTION 2.   Amendments to Existing Credit Agreement.

 

(a)         Section 1.1 of the Existing Credit Agreement is hereby amended by inserting the following new definitions:

 

““First Amendment”: the First Amendment to the Second Amended and Restated Credit Agreement dated June 1, 2015 among Air Lease Corporation as Borrower, the several lenders party thereto and JPMorgan Chase Bank, N.A. as Administrative Agent for the Lenders.

 

“First Amendment Effective Date”: the date on which the conditions precedent set forth in Section 3 of the First Amendment shall have been satisfied or waived, which date is June 1, 2015.

 

“Issuing Lender L/C Commitment Sublimit”: for JPMorgan Chase Bank, N.A., $55,000,000, for Natixis, New York Branch, $50,000,000 and for any other Issuing Lender, the amount agreed in writing between the Issuing Lender and the Borrower.”

 

 

(b)         Section 1.1 of the Existing Credit Agreement is hereby amended by amending and restating in its entirety the following definitions set forth therein as follows:

 

““Issuing Lender”: each of JPMorgan Chase Bank, N.A., Natixis, New York Branch and any other Lender approved by the Administrative Agent and the Borrower that has agreed in its sole discretion to act as an “Issuing Lender” hereunder, or any of their respective Affiliates, in each case in its capacity as issuer of any Letter of Credit.  Each reference herein to “the Issuing Lender” shall be deemed to be a reference to the relevant Issuing Lender.

 

“Swingline Exposure”: at any time, the sum of the aggregate amount of all outstanding Swingline Loans at such time.  Subject to Section 2.19(c)(i), the Swingline Exposure of any Lender at any time shall be the sum of (a) its Revolving Percentage of the total Swingline Exposure at such time other than any Swingline Loans made by such Lender in its capacity as a Swingline Lender and (b) if such Lender shall be a Swingline Lender, the principal amount of all Swingline Loans made by such Lender outstanding at such time (to the extent that the other Lenders shall not have funded their participations in such Swingline Loans).”

 

(c)          The first sentence of Section 2.1(a) of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Subject to the terms and conditions hereof, each Lender severally agrees to make Loans to the Borrower from time to time during the Commitment Period in an aggregate principal amount (i) at any one time outstanding which, when added (after giving effect to any application of proceeds of such Loans pursuant to Section 2.3) to the sum of (A) such Lender’s Revolving Percentage of the L/C Obligations then outstanding and (B) such Lender’s Swingline Exposure then outstanding, does not exceed the amount of such Lender’s Commitment and (ii) that will not result in the Total Extensions of Credit plus the aggregate principal amount of outstanding Competitive Loans exceeding the Total Commitments.”

 

(d)         Section 2.1(b) of the Existing Credit Agreement is hereby amended by deleting the number “$500,000,000” and replacing it with the number “$900,000,000”.

 

(e)          The first sentence of Section 2.3(a) of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Subject to the terms and conditions hereof, from time to time during the Commitment Period, the Swingline Lender agrees to make a portion of the credit otherwise available to the Borrower under the Commitments by making swing line loans (“Swingline Loans”) to the Borrower; provided that (i) the sum of (x) the Swingline Exposure of such Swingline Lender (in its capacity as a Swingline Lender and a Lender), (y) the aggregate principal amount of outstanding Loans made by such Swingline Lender (in its capacity as a Lender) and (z) the L/C Exposure of such Swingline Lender (in its capacity as a Lender) shall not exceed its Commitment then in effect, (ii) the sum of the outstanding Swingline Loans shall not exceed the Swingline Commitment and (iii) the Borrower shall not request, and the Swingline Lender shall not make, any Swingline Loan if, after giving effect to the making of such Swingline Loan, the aggregate amount of the Available Commitments would be less than zero or the sum of the Total Extensions of Credit and the aggregate principal amount of the outstanding Competitive Loans would exceed the Total Commitments.”

 

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(f)           Section 2.3(b) of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

 

“The Borrower shall repay to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Termination Date and five Business Days after such Swingline Loan is made; provided that on each date that a Loan is borrowed or a Competitive Borrowing occurs, the Borrower shall repay all Swingline Loans then outstanding and in connection therewith, the proceeds of any such Loans or Competitive Borrowings (as the case may be) shall be applied by the Administrative Agent to repay any Swingline Loans outstanding.”

 

(g)          Section 2.15 of the Existing Credit Agreement is hereby amended by inserting a new clause (i) as follows and re-numbering the existing clauses (i) and (j) as clauses (j) and (k) respectively:

 

“(i)                               For purposes of determining withholding Taxes imposed under FATCA, from and after the First Amendment Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).”

 

(h)         Section 2.19(c)(i) of the Existing Credit Agreement is hereby amended by inserting the words “(other than the portion of such Swingline Exposure referred to in clause (b) of the definition of such term)” immediately between the words “Lender” and “shall” on the second line of such section.

 

(i)             Clause (i) of the first sentence Section 3.1(a) of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(i)(x) the L/C Obligations would exceed the L/C Commitment or (y) the aggregate stated amount of Letters of Credit issued by the Issuing Lender would exceed the Issuing Lender L/C Commitment Sublimit of the Issuing Lender,”.

 

(j)            The first sentence of Section 3.2 of the Existing Credit Agreement is hereby amended and restated in its entirety as follows:

 

“The Borrower may from time to time request that the Issuing Lender issue a Letter of Credit by delivering to the Administrative Agent and the Issuing Lender at their respective addresses for notices specified herein an Application completed to the reasonable satisfaction of the Issuing Lender, and such other certificates, documents and other papers and information as the Issuing Lender may request.”.

 

SECTION 3.   Effective Date.  This Amendment shall become effective on the date (the “Effective Date”) on which the following conditions have been satisfied or waived by the Administrative Agent:

 

(a)  The Administrative Agent shall have received a counterpart of this Amendment, executed and delivered by a duly authorized officer of each of the Borrower and the Required Lenders.

 

(b)  The Administrative Agent shall have received reimbursement or payment of all of its reasonable and documented out-of-pocket expenses incurred in connection with this Amendment, any other documents prepared in connection herewith and the transaction contemplated hereby, including, without limitation, fees, disbursements and reasonable charges of counsel to the Administrative Agent.

 

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SECTION 4.   Representations and Warranties.  The Borrower hereby represents and warrants that (a) each of the representations and warranties made by the Borrower in the Loan Documents or any notice or certificate delivered in connection therewith (other than the representation and warranty contained in Section 4.2 of the Existing Credit Agreement) shall be, after giving effect to this Amendment, true and correct in all material respects (provided that any representation or warranty that is qualified by materiality shall be true and correct in all respects) on and as of the Effective Date as if made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (provided that any representation or warranty that is qualified by materiality shall be true and correct in all respects) as of such earlier date and (b) after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.

 

SECTION 5.   GOVERNING LAW; WAIVER OF JURY TRIAL.  THIS AMENDMENT, THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER AND ANY CLAIM OR CONTROVERSY RELATED TO THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  EACH PARTY HERETO HEREBY AGREES AS SET FORTH IN SECTION 10.12 OF THE CREDIT AGREEMENT AS IF SUCH SECTION WERE SET FORTH IN FULL HEREIN.

 

SECTION 6.   Amendments; Execution in Counterparts.  (a) This Amendment shall not constitute an amendment of any other provision of the Existing Credit Agreement not referred to herein and, except as expressly provided for herein, shall not be construed as a waiver or consent to any further or future action on the part of the Borrower that would require a waiver or consent of the Lenders or the Administrative Agent.  Except as expressly amended hereby, the provisions of the Existing Credit Agreement are and shall remain in full force and effect.

 

(b)  The Borrower and the other parties hereto hereby acknowledge and agree that this Amendment shall constitute a “Loan Document” as such term is used in the Existing Credit Agreement, and each reference in the Existing Credit Agreement as amended hereby to the “Loan Documents” shall be deemed to include this Amendment.

 

(c)  This Amendment may not be amended nor may any provision hereof be waived except pursuant to a writing signed by the Borrower and the Required Lenders.

 

(d)  This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Amendment by email or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.  A set of the copies of this Amendment signed by all the parties shall be lodged with the Borrower and the Administrative Agent.

 

SECTION 7. Severability; Integration.  (a)  Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

(b)  This Amendment and the other Loan Documents represent the agreement of the Borrower, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written.

 

	
 
    	
AIR LEASE CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gregory B. Willis
    
	
 
    	
Name:
    	
Gregory B. Willis
    
	
 
    	
Title:
    	
Senior Vice President & Chief   Financial Officer
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
JPMORGAN CHASE BANK, N.A., as Administrative   Agent and as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Matthew H. Massie
    
	
 
    	
Name:
    	
Matthew H. Massie
    
	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Mizuho Bank, Ltd., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Donna DeMagistris
    
	
 
    	
Name:
    	
Donna DeMagistris
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

 

	
 
    	
Sun Trust Bank as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Doug Kennedy
    
	
 
    	
Name: Doug Kennedy
    
	
 
    	
Title: Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
BMO HARRIS BANK N.A. as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Catherine Blaesing
    
	
 
    	
Name: Catherine Blaesing
    
	
 
    	
Title: Director
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Citibank, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Maureen P. Maroney
    
	
 
    	
Name: Maureen P. Maroney
    
	
 
    	
Title: Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
FIFTH THIRD BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eric Oberfield
    
	
 
    	
Name: Eric Oberfield
    
	
 
    	
Title: Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
ROYAL BANK OF CANADA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott Umbs
    
	
 
    	
Name: Scott Umbs
    
	
 
    	
Title: Authorized Signatory
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Bank of America, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jason Cassity
    
	
 
    	
Name: Jason Cassity
    
	
 
    	
Title: Director
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Wells Fargo Bank, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Will Eustis
    
	
 
    	
Name: Will Eustis
    
	
 
    	
Title: Director
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Santander Bank, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Daniel O’Connor
    
	
 
    	
Name: Daniel O’Connor
    
	
 
    	
Title: Managing Director
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
MUFG Union Bank, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ James Heim
    
	
 
    	
Name: James Heim
    
	
 
    	
Title: Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
CREDIT SUISSE AG, NEW YORK BRANCH, as a   Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William O’Daly
    
	
 
    	
Name: William O’Daly
    
	
 
    	
Title: Authorized Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jack Madej
    
	
 
    	
Name: Jack Madej
    
	
 
    	
Title: Authorized Signatory
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Commonwealth Bank of Australia, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ James M. Miller
    
	
 
    	
Name: James M. Miller
    
	
 
    	
Title: Head of Americas Origination  Structured Asset Finance
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
DEUTSCHE BANK AG NEW YORK BRANCH, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Virginia Cosenza
    
	
 
    	
Name: Virginia Cosenza
    
	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ming K. Chu
    
	
 
    	
Name: Ming K. Chu
    
	
 
    	
Title: Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

 

	
 
    	
Morgan Stanley Senior Funding, Inc., as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael King
    
	
 
    	
Name: Michael King
    
	
 
    	
Title: Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Morgan Stanley Bank, N.A., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael King
    
	
 
    	
Name: Michael King
    
	
 
    	
Title: Authorized Signatory
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
BNP PARIBAS, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eric Chilton
    
	
 
    	
Name: Eric Chilton
    
	
 
    	
Title: Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert Papas
    
	
 
    	
Name: Robert Papas
    
	
 
    	
Title: Director
    
	
 
    	
          Transportation   Group-Aviation Finance
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
CREDIT AGRICOLE CORPORATE AND INVESTMENT   BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Justine Ventrelli
    
	
 
    	
Name:
    	
Justine Ventrelli
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas Jean
    
	
 
    	
Name:
    	
Thomas Jean
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Natixis, New York Branch, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gerardo Canet
    
	
 
    	
Name:
    	
Gerardo Canet
    
	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lily Cheung
    
	
 
    	
Name:
    	
Lily Cheung
    
	
 
    	
Title:
    	
Natixis
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Lloyds Bank plc, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Erin Doherty
    
	
 
    	
Name:
    	
Erin Doherty
    
	
 
    	
Title:
    	
Assistant Vice President
    
	
 
    	
 
    	
Transaction Execution
    
	
 
    	
 
    	
Category A
    
	
 
    	
 
    	
P006
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daven Popat
    
	
 
    	
Name:
    	
Daven Popat
    
	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    	
Transaction Execution
    
	
 
    	
 
    	
Category A
    
	
 
    	
 
    	
P003
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

 

	
 
    	
DBS Bank Ltd., as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ong Sie Wei
    
	
 
    	
Name: Ong Sie Wei
    
	
 
    	
Title: Senior Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
U.S. Bank, National Association, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gary P. Terrasi
    
	
 
    	
Name: Gary P. Terrasi
    
	
 
    	
Title: Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Bank of the West, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David G. Kronen
    
	
 
    	
Name: David G. Kronen
    
	
 
    	
Title: Director
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Sidney Jordan
    
	
 
    	
Name: Sidney Jordan
    
	
 
    	
Title: Managing Director
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

 

	
 
    	
Apple Bank for Savings, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jonathan Byron
    
	
 
    	
Name: Jonathan Byron
    
	
 
    	
Title: Senior Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
City National Bank, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eric Lo
    
	
 
    	
Name: Eric Lo
    
	
 
    	
Title: Vice President
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Bank of Communications Co., Ltd., New   York Branch, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shelley He
    
	
 
    	
Name: Shelley He
    
	
 
    	
Title: Deputy General Manager
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
Mega International Commercial Bank Co., Ltd   New York Branch, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Angela Chen
    
	
 
    	
Name: Angela Chen
    
	
 
    	
Title: VP & Deputy GM
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
East West Bank, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kandy Hung
    
	
 
    	
Name: Kandy Hung
    
	
 
    	
Title: Director of Syndications
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
One West Bank N.A., as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Farrace
    
	
 
    	
Name: John Farrace
    
	
 
    	
Title: EVP
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

 

 

	
 
    	
United Bank as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David C. Paulson
    
	
 
    	
Name: David C. Paulson
    
	
 
    	
Title: EVP, Head of Wholesale Banking
    

 

[Signature Page to First Amendment to ALC Credit Agreement]

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