Document:

Exhibit 10.1

 

Execution Copy

 

AMENDMENT NO. 6

 

TO

 

CREDIT AGREEMENT

 

This AMENDMENT NO. 6 to CREDIT AGREEMENT (this “Amendment”), dated as of March 24, 2015, is entered into by and among AAR CORP. (the “Borrower”), the financial institutions party hereto (the “Lenders”), BANK OF AMERICA, N.A., as Administrative Agent (the “Administrative Agent”), Wells Fargo Bank, N.A., as Syndication Agent and Citizens Bank, National Association, as Documentation Agent.  Each capitalized term used herein and not otherwise defined herein shall have the meaning given to it in the below-defined Credit Agreement.

 

WITNESSETH

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to that certain Credit Agreement dated as of April 12, 2011 (as the same has been or may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

 

WHEREAS, the Borrower wishes to amend the Credit Agreement in certain respects and the Lenders and the Administrative Agent are willing to amend the Credit Agreement on the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Administrative Agent and the Lenders hereby agree as follows:

 

SECTION 1.                            Amendment to Credit Agreement.  Effective as of the date first above written (the “Amendment No. 6 Effective Date”), and subject to the satisfaction of the conditions to effectiveness set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

 

(a)                                 Section 1.01 of the Credit Agreement is hereby amended to insert the following definitions in alphabetical order, removing those now contained therein where appropriate:

 

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.

 

 

“Applicable Rate” means the following percentages per annum, based upon the Adjusted Total Debt to EBITDA Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.01(c):

 

Applicable Rate

 

	
Pricing
   Level
    	
 
    	
Adjusted Total Debt
   to EBITDA Ratio
    	
 
    	
Commitment
   Fee
    	
 
    	
Eurodollar and
   Letters of Credit
    	
 
    	
Base Rate
    	
 
    
	
1
    	
 
    	
< 1.75:1
    	
 
    	
0.20
    	
%
    	
1.00
    	
%
    	
0.00
    	
%
    
	
2
    	
 
    	
> 1.75:1 but < 2.75:1
    	
 
    	
0.25
    	
%
    	
1.25
    	
%
    	
0.25
    	
%
    
	
3
    	
 
    	
> 2.75:1 but < 3.25:1
    	
 
    	
0.30
    	
%
    	
1.50
    	
%
    	
0.50
    	
%
    
	
4
    	
 
    	
> 3.25:1
    	
 
    	
0.35
    	
%
    	
2.00
    	
%
    	
1.00
    	
%
    

 

Any increase or decrease in the Applicable Rate resulting from a change in the Adjusted Total Debt to EBITDA Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.01(c); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request of the Required Lenders, Pricing Level 4 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered.  The Applicable Rate in effect from the Amendment No. 6 Effective Date through the date on which the Compliance Certificate for the period ended May 31, 2015 is delivered to the Administrative Agent shall be determined based upon Pricing Level 2.

 

“Arranger” or “Arrangers” means, individually or collectively, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC and Citizens Bank, National Association, in their capacities as joint lead arrangers and joint bookrunners.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s office with respect to Obligations denominated in Dollars is located and if such day relates to any interest rate settings as to a Eurodollar Rate Loan denominated in dollars, any fundings, disbursements, settlements and payments in Dollars in respect of any such Eurodollar Rate Loan, or any other dealings in Dollars to be carried out pursuant to this Credit Agreement in respect of any such Eurodollar Rate Loan, means any such day that is also a London Banking Day.

 

“Cargo/Precision Companies” means Telair International GmbH and its Subsidiaries, Nordisk Aviation Products AS and its Subsidiaries, the AAR Cargo (Telair US) business and the Precision Systems Manufacturing business (including Aerostructures & Interiors).

 

“Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion of Committed Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Committed Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower.

 

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

“EBITDA” means, for any period, Consolidated Net Income for such period plus, to the extent deducted in determining such Consolidated Net Income, Interest Expense, income and franchise tax expense, depreciation and amortization, losses (less gains) from Asset Dispositions, other expenses and fees in connection with the consummation of the transaction evidenced by this Agreement, extraordinary losses (less extraordinary gains), and transaction costs incurred in connection with the issuance by the Borrower of high-yield debt or equity for such period, plus, to the extent deducted in determining such Consolidated Net Income, (x) any losses or charges relating to the sale or disposition of the Cargo/Precision Companies, (y) any losses or expenses, including any make-whole paid, relating to the early redemption of the Borrower’s 71⁄4% Senior Notes due 2022 and (z) any costs associated with the Borrower’s repurchase of up to $250,000,000 of its common stock pursuant to a tender offer, accelerated stock buyback or open market purchase program, and minus, to the extent included in determining such Consolidated Net Income, any gains relating to the sale or disposition of the Cargo/Precision Companies or the early redemption of the Borrower’s 71⁄4% Senior Notes due 2022.  EBITDA shall be calculated on a pro forma basis to give effect to (a) any Acquisition by the Borrower or any of its Restricted Subsidiaries consummated at any time on or after the first day of a Computation Period as if such Acquisition had been consummated on the first day of such Computation Period and (b) any Disposition or discontinuance of operations by the Borrower or any of its Restricted Subsidiaries consummated at any time on or after the first day of a Computation Period as if such Disposition or discontinuance had been consummated on the first day of such Computation Period.

 

“Eurodollar Rate” means:

 

(a)                                 for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable or successor rate, which rate is approved by the Administrative Agent, as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; and

 

(b)                                 for any interest rate calculation with respect to a Base Rate Loan on any date, the rate per annum equal to LIBOR, at approximately 11:00 a.m. London time, determined two Business Days prior to such date for Dollar deposits with a term of one month commencing that date;

 

provided, that, (i) to the extent a comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied to the applicable Interest Period in a manner consistent with market practice; provided, further, that, to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied to the applicable Interest Period as otherwise reasonably determined by the Administrative Agent and (ii) if the Eurodollar Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

 

“Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and only to the extent that, all or a portion of the guaranty of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof), including by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guaranty of such Guarantor or the grant of such security interest becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guaranty or security interest is or becomes illegal.

 

“FATCA” means Sections 1471 through 1474 of the Code, as of March 24, 2015 (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code

 

“Fee Letter” means the letter agreement, dated March 12, 2015, among the Borrower, the Administrative Agent and the Arranger.

 

“Interest Coverage Ratio” means, for any Computation Period, the ratio of (a) the total for such period of EBITDA for the Borrower and its Restricted Subsidiaries to (b) the total for such period of required payments of cash Interest Expense by the Borrower and its Restricted Subsidiaries.

 

“L/C Issuer” means Bank of America, Wells Fargo Bank, N.A., Citibank, N.A., Citizens Bank, National Association or another Lender designated by the Borrower and approved by the Administrative Agent, in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“Maturity Date” means March 24, 2020; provided, however, that if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

 

“Obligations” means all obligations (monetary (including post-petition interest, allowed or not) or otherwise) of the Borrower and other Loan Parties under this Agreement and any other Loan Document including Attorney Costs and any reimbursement obligations of the Borrower in respect of Letters of Credit and surety bonds, all Hedging Obligations permitted hereunder which are owed to any Lender or its Affiliate or the Administrative Agent, and all Bank Products Obligations, all in each case howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due, provided that the Obligations shall exclude any Excluded Swap Obligations.

 

“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control, and any successor thereto.

 

 

“Person” means any natural person, corporation, firm, joint venture, partnership, limited liability company, association, enterprise, trust or other entity or organization, or any government or political subdivision or any agency, department or instrumentality thereof.

 

“Responsible Officer” means the chief executive officer, the chief financial officer, the president and chief operating officer, the chief accounting officer, the treasurer or the assistant treasurer of a Loan Party and solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of a Loan Party and, solely for purposes of notices given pursuant to Article II, any other officer or employee of the applicable Loan Party so designated by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 

“Sanctioned Country” means, at any time, any country or territory which is itself the subject or target of any comprehensive Sanctions.

 

“Sanctioned Person” means, at any time, (a) any Person or group listed in any Sanctions-related list of designated Persons maintained by OFAC or the U.S. Department of State, the United Nations Security Council, the European Union or any EU member state, (b) any Person or group operating, organized or resident in a Sanctioned Country, (c) any agency, political subdivision or instrumentality of the government of a Sanctioned Country, or (d) any Person 50% or more owned, directly or indirectly, by any of the above.

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

“Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.05(b), which, if in writing, shall be substantially in the form of Exhibit C or such other form as approved by the Administrative Agent (including any form on an electronic platform or electronic transmissions system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Borrower.

 

(b)                                 Section 2.04(a)(iii)(D) of the Credit Agreement is hereby amended to insert the following at the end thereof:

 

“or a currency in which the applicable L/C Issuer can and is willing to issue Letters of Credit;”

 

 

(c)                                  Section 2.16(a) of the Credit Agreement is hereby amended to delete the reference to “$50,000,000” and to substitute therefor “$250,000,000.”

 

(d)                                 Section 3.01 of the Credit Agreement is hereby amended to add a new subsection (g) at the end thereof as follows:

 

“(g)                            For purposes of determining withholding Taxes imposed under FATCA, from and after March 24, 2015, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Credit Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(l).”

 

(e)                                  Article V of the Credit Agreement is hereby amended to add a new Section 5.19 as follows:

 

“5.19                  Anti-Corruption Laws; Sanctions; Anti-Terrorism Laws.

 

(a)                                 The Borrower, its Subsidiaries and their respective officers and employees, and to the knowledge of the Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of the Borrower, any Subsidiary or to the knowledge of the Borrower or such Subsidiary any of their respective directors, officers or employees is a Sanctioned Person.  No Loan or Letter of Credit, use of the proceeds of any Loan or Letter of Credit or other transactions contemplated hereby will violate Anti-Corruption Laws or applicable Sanctions.

 

(b)                                 Neither the making of the Loans hereunder nor the use of the proceeds thereof will violate the PATRIOT Act, the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto or successor statute thereto.  The Borrower and its Subsidiaries are in compliance in all material respects with the PATRIOT Act.”

 

(f)                                   Section 6.04 of the Credit Agreement is hereby amended by inserting immediately after the first reference to “Multiemployer Plans:”

 

“and Anti-Corruption Laws and applicable Sanctions),”

 

(g)                              Section 6.06 of the Credit Agreement is hereby amended to insert the following at the end thereof:

 

“The Borrower shall ensure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use the proceeds of any Loan or Letter of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or (ii) in any manner that would result in the violation of  any applicable Sanctions.”

 

 

(h)                                 Article VI of the Credit Agreement is hereby amended to add a new Section 6.08 as follows:

 

“6.08                  PATRIOT Act Compliance.  The Borrower shall, and shall cause each Subsidiary to, provide such information and take such actions as are reasonably requested by the Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in maintaining compliance with the PATRIOT Act.”

 

(i)                                     Section 7.01 of the Credit Agreement is hereby amended to delete clauses (m) and (n) now contained therein and substitute therefor the following:

 

“(m)                       Debt of the Borrower consisting of the 7 1⁄4% Senior Notes due 2022, and Debt of any Restricted Subsidiary to Guarantee such Notes, provided that if such Notes are not called for redemption within 180 days after the Closing Date, such Restricted Subsidiary shall guarantee the Borrower’s Obligations under this Agreement pursuant to a Guaranty substantially identical to the Guaranty;

 

(n)                                 other unsecured Debt incurred by the Borrower provided, that immediately before and immediately after the incurrence of such Debt, no Event of Default or Default exists; and

 

(o)                                 other unsecured Debt incurred by any Restricted Subsidiary to Guarantee Debt incurred by the Borrower as permitted by Section 7.01(n) provided that such Subsidiary also contemporaneously Guarantees the Borrower’s Obligations under this Agreement pursuant to a Guaranty substantially identical to the Guaranty.”

 

(j)                                Section 7.05 of the Credit Agreement is hereby amended to add at the end thereof the following:

 

“Notwithstanding the forgoing, the Borrower and its Restricted Subsidiaries may Transfer their interests in the Cargo/Precision Companies.”

 

(k)                                 Section 7.07 of the Credit Agreement is hereby amended to add at the end thereof the following:

 

“except through a merger permitted under Section 7.04”

 

(l)                                 Section 7.13 of the Credit Agreement is hereby amended to delete clause (a) now contained therein and substitute therefor the following:

 

“(a)                           Minimum Interest Coverage Ratio.  Not permit the Interest Coverage Ratio for any Computation Period to be less than 3.00 to 1.00.”

 

(m)                             Section 9.11 of the Credit Agreement is hereby amended to delete the two references to “Co-Syndication Agent” and substitute therefor “Syndication Agent.”

 

(n)                                 Schedule 2.01 is hereby amended by replacing the Schedule now attached to the Credit Agreement with Schedule 2.01 attached to this Amendment.

 

SECTION 2.                            Condition of Effectiveness.  This Amendment shall become effective and be deemed effective as of the date hereof, subject to the satisfaction of the conditions precedent that the Administrative Agent shall have received each of the following:

 

 

(a)                                 counterparts of this Amendment executed by the Borrower and the Lenders; and

 

(b)                                 a certificate of the Secretary or Assistant Secretary of the Borrower certifying resolutions of the Borrower’s Board of Directors authorizing execution, delivery and performance of the Amendment; and

 

(c)                                  an opinion of Schiff Hardin LLP, counsel for the Borrower, covering Borrower’s corporate power and authority, execution and delivery, legality, validity and binding effect and enforceability; and

 

(d)                                 such other documents as the Administrative Agent may reasonably request, all in form and substance reasonably satisfactory to the Administrative Agent.

 

SECTION 3.                            Representations and Warranties of the Borrower. The Borrower hereby represents and warrants as follows:

 

(a)                                 The Credit Agreement, as amended by this Amendment constitutes the legal, valid and binding obligation of the Borrower and is enforceable against the Borrower in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity; and

 

(b)                                 Upon the effectiveness of this Amendment, the Borrower hereby (i) represents that no Event of Default or Unmatured Event of Default exists under the terms of the Credit Agreement, (ii) reaffirms all covenants, representations and warranties made in the Credit Agreement, and (iii) agrees that all such covenants, representations and warranties shall be deemed to have been remade as of the effective date of this Amendment.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power, or remedy of the Lenders or the Administrative Agent under the Credit Agreement or any related document, instrument or agreement.  The Administrative Agent and the Lenders expressly reserve all of their rights and remedies, including the right to institute enforcement actions in consequence of any existing Events of Default or Unmatured Events of Default not waived hereunder or otherwise at any time without further notice, under the Credit Agreement, all other documents, instruments and agreements executed in connection therewith, and applicable law.

 

SECTION 4.                            Effect on the Credit Agreement.

 

(a)                                 Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Credit Agreement, as amended and modified hereby.

 

(b)                                 Except as specifically amended and modified above, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect, and are hereby ratified and confirmed.

 

 

(c)                                  The execution, delivery and effectiveness of this Amendment shall neither, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders or the Administrative Agent, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

SECTION 5.                            Cancellation of Supplemental Guaranties.  Upon the effectiveness of this Amendment, the Supplemental Guaranty dated January 23, 2012 and the Supplemental Guaranty dated November 30, 2012 shall be cancelled and be of no further force or effect.  The Guaranty dated April 12, 2011 shall remain in full force and effect, and is hereby ratified and confirmed.

 

SECTION 6.                            Costs and Expenses.  The Borrower agrees to pay on demand all reasonable costs, fees and out-of-pocket expenses (including attorneys’ fees, costs and expenses charged to the Administrative Agent) incurred by the Administrative Agent and the Lenders in connection with the preparation, arrangement, execution and enforcement of this Amendment.

 

SECTION 7.                            Governing Law.  This Amendment shall be governed by and construed in accordance with the internal laws of the State of Illinois without regard to conflicts of law provisions of the State of Illinois.

 

SECTION 8.                            Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

SECTION 9.                            Counterparts.  This Amendment may be executed by one or more of the parties to the Amendment on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  A facsimile copy of a signature hereto shall have the same effect as the original thereof.

 

SECTION 10.                     No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Amendment.  In the event an ambiguity or question of intent or interpretation arises, this Amendment shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Amendment.

 

The remainder of this page is intentionally blank.

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

 

	
 
    	
AAR CORP.,
    
	
 
    	
as Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael K. Carr
    
	
 
    	
Name:
    	
Michael K. Carr
    
	
 
    	
Title:
    	
Vice President & Assistant Treasurer
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christine Trotter
    
	
 
    	
Name:
    	
Christine   Trotter
    
	
 
    	
Title:   
    	
Assistant   Vice President
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Bergner
    
	
 
    	
Name:   
    	
Michael   Bergner
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
WELLS   FARGO BANK, N.A.,
    
	
 
    	
as   Syndication Agent and a Lender
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Brett T. Rausch
    
	
 
    	
Name:
    	
Brett   T. Rausch
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
CITIBANK,   N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian Reed
    
	
 
    	
Name:
    	
Brian   Reed
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
CITIZENS   BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   Documentation Agent and a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Stephen A. Maenhout
    
	
 
    	
Name:   Stephen A. Maenhout
    
	
 
    	
Title:  Senior Vice President
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Kathleen D. Schurr
    
	
 
    	
Name:  Kathleen D. Schurr
    
	
 
    	
Title:  Vice President
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
PNC   BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Patrick Flaherty
    
	
 
    	
Name:  Patrick Flaherty
    
	
 
    	
Title:  Vice President
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
THE   PRIVATEBANK AND TRUST COMPANY, 
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Chris O’Hara
    
	
 
    	
Name:  Chris O’Hara
    
	
 
    	
Title:  Managing Director
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

	
 
    	
ASSOCIATED   BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Michael Berent
    
	
 
    	
Name:  Michael Berent
    
	
 
    	
Title:  Senior Vice President
    

 

Signature Page to Amendment No. 6 to

AAR Corp. Credit Agreement

 

 

Schedule 2.01 — Commitments

 

	
Lender
    	
 
    	
Revolving Commitment
    Amount
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Bank of America, N.A.
    	
 
    	
$
    	
120,000,000.00
    	
 
    
	
Wells Fargo Bank, N.A.
    	
 
    	
$
    	
120,000,000.00
    	
 
    
	
Citibank, N.A.
    	
 
    	
$
    	
80,000,000.00
    	
 
    
	
Citizens Bank, National Association
    	
 
    	
$
    	
80,000,000.00
    	
 
    
	
U.S. Bank National Association
    	
 
    	
$
    	
40,000,000.00
    	
 
    
	
PNC Bank, National Association
    	
 
    	
$
    	
20,000,000.00
    	
 
    
	
The PrivateBank and Trust Company
    	
 
    	
$
    	
20,000,000.00
    	
 
    
	
Associated Bank, N.A.
    	
 
    	
$
    	
20,000,000.00
    	
 
    
	
TOTALS
    	
 
    	
$
    	
500,000,000.00EX-10.1

 Exhibit 10.1 

MEDBOX, INC. 
 DIRECTOR
RETENTION AGREEMENT 
 THIS MEDBOX, INC. DIRECTOR RETENTION AGREEMENT (“Agreement”) is entered into by and between, on one
hand, Medbox, Inc., a Nevada corporation with principal executive offices in California (“Medbox” and or “Company”) and, on the other hand, Mitch Lowe (“Director”) as of March 1, 2014. Medbox and Director are
sometimes referred to herein, from time to time, collectively, as the “Parties.” 
 Recitals 

WHEREAS, Director has been elected as a member of the board of directors of Medbox for a term beginning as of March 1, 2014; 

WHEREAS, Director has agreed to serve as a member of the board of directors of Medbox for the aforementioned term and subject to its in-force
articles and bylaws and governing law; and, 
 WHEREAS, Medbox wishes to compensate and arrange for compensation for Director as
consideration for his expected service as a member of the board of directors of Medbox. 
 Terms And Conditions 

NOW THEREFORE, in consideration of the mutual promises, agreements and or covenants set forth in this Agreement, the Parties agree as follows:

 1. Services Provided By Director. Director agrees to serve as a member of the board of directors of the Company (the “Board”) and,
subject to his election thereto, any committee of the Board comprised of Company Board members (“Committee”) as may be formed and as to which he may be elected, and to provide those services (the “Services”) required of a
director and, as may be the case Committee member under the Company’s articles and bylaws (“Articles and Bylaws”), as both may be amended from time to time, and under the corporate law of the State of Nevada, the federal securities
laws and other state and federal laws and regulations, as may be applicable. Presently, Director is a member of the following board committees: governance (Chairman), nominating (Chairman), audit (member), compensation (member). It is contemplated
that Director will provide guidance to the Company regarding vertical strategies, manufacturing, marketing and other matters within his experience and background, and the Director agrees to be available as the Company needs his time, as requested by
the CEO/President and Chairman of the Board. 
 2. Nature of Relationship. Director will not be deemed an employee of the Company. 

  
 1 

 3. Company Information. The Company will supply to Director, at the Company’s expense: 

(a) periodic briefings on the business and operations of the Company; 

(b) director packages for each Board and Committee meeting, at a reasonable time before each meeting; 

(c) copies of minutes of all stockholders’, Board and Committee meetings; 

(d) any other materials that are required under the Articles and Bylaws or the charter of any Committee on which the Director serves; and, 

(e) any other materials which may, in the reasonable judgment of Director, be necessary or desirable for performing the Services. 

4. Representations, Warranties and Covenants of Director. 

(a) Director represents and warrants that the performance of the Services will not violate any written agreement to which Director is a party; 

(b) If in the reasonable discretion of the Director, a potential conflict of interest regarding his other work comes to the attention of Director, Director
agrees to disclose same to the Company in a timely manner; and, 
 (c) Director further agrees that he will comply with all applicable state and federal
laws and regulations. 
 5. Director Compensation. 

5.1 Monthly Director Fee. The Company shall pay Director a fee of $4,000 per month during the term of this Agreement, and as otherwise provided herein,
payable monthly on a day of the month established by the Company so as to be convenient to its affairs, but which shall be consistent each month, from month to month. This amount can be adjusted to $5,000 as determined by the CEO/President of the
Company and the Director. 
 5.2 Reasonable and Customary Expenses. The Company will reimburse Director for reasonable and customary expenses
incurred in the performance of the Services for travel (coach airfare paid by Company and any upgrades paid by Director), lodging (maximum reimbursement $350.00 per night), meals and otherwise promptly, but in no event later than fifteen business
days, upon submission of invoices and receipts for such expenses in a commercially reasonable form. 
 5.3 Stock. Director shall receive stock from
the Company as set forth herein specifically below, which shall be in accord with any applicable stock plan of the Company’s in force and effect as of the date of this Agreement, and the Director shall be permitted to sell stock in the Company
owned by the Director in accord with the Company’s applicable Insider Trading Policy, and any other applicable plan or policy, and in accord with Director’s Sales Plan (a true and correct copy of which is attached hereto as Exhibit A).

  
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 More specifically, the Director shall receive the following stock from the Company on the following dates and
with the following terms: 
  

	 	a.	First Year Inducement Grant - 243,750 shares comprised of: 

  

	 	(i)	178,125 shares of Restricted Stock(“RS”), 51,562.5 shares of which vest on September 1, 2014, and 42,187.5 shares of which vest on each of September 30, 2014, January 1, 2015 and
March 31, 2015. 

  

	 	(ii)	65,625 Restricted Stock Units (“RSUs”), 23,437.5 of which vest on September 1, 2014, and 14,062.5 of which vest on each of September 30, 2014, January 1, 2015 and March 31,
2015. 

  

	 	•	 	Each vested RSU is payable in one share of common stock. 

  

	 	•	 	All 65,625 vested RSUs will be paid out on April 1, 2015. 

  

	 	b.	Annual Equity Grant in second year of service and, if elected, in third year of service – 100,000 shares comprised of: 

  

	 	(i)	75,000 shares of RS, 18,750 shares of which vest on each of July 1, October 1, January 1, and April 1. 

 

	 	(ii)	25,000 RSUs, 6,250 of which vest on each of July 1, October 1, January 1, and April 1. 

  

	 	•	 	Each vested RSU is payable in one share of common stock. 

  

	 	•	 	All 25,000 vested RSUs will be paid out on April 1, 2016 and, if applicable, April 1 2017, respectively. 

Expiration of the Sales Plan currently in effect shall not limit the Director’s right or ability to make sales of his stock in the Company, nor his right
or ability to receive stock in the Company in accord with the above schedule. Director shall have the right to extend the current Sales Plan after its expiration by providing an identical plan to the Company for its consent, which the Company agrees
to approve provided that any such plan is otherwise identical to the existing Sales Plan except that it extends for a period of time no greater than the Director’s then existing term as a Director of the Company. 

6. Indemnification and Insurance. 
 (a) The Company shall
indemnify the Director to the fullest extent of the law and its articles and bylaws then in effect, and further in accord with the Company’s broadest outstanding form of indemnification agreement; 

(b) In addition, the Company shall, at its expense and immediately upon execution of this Agreement, if that has not already occurred, cause Director to be
covered as an insured under a directors’ and officers’ liability insurance policy commercially reasonable as to coverage limitations and amounts, taking into account the Company’s business and stage

  
 3 

 
of development, but with at least $2 million in aggregate limits; provided, however, that the Company will make good faith efforts to explore and put in place a policy with higher coverage limits
at the renewal stage. 
 7. Term and Termination. 
 (a)
This Agreement shall be effective beginning as of March 1, 2014 until March 31, 2016. If elected for an additional term beyond March 31, 2016, this Agreement will remain in full force and effect until March 31, 2017. 

(b) This Agreement shall automatically terminate upon the death or disability of Director or upon his resignation or removal from the Board. For purposes of
this Section 7(b), “disability” shall mean the inability of Director to perform the Services for a period of at least 90 consecutive days, as determined by the Company’s board of directors. 

(c) In the event of any termination of this Agreement, Director agrees to return any materials received from the Company pursuant to Section 3
(“Company Information”) of this Agreement except as may be necessary to fulfill any outstanding obligations hereunder, if any, and as to those, those shall be returned promptly upon completion of said obligations. Director agrees that the
Company has the right of injunctive relief to enforce this provision without need to show irreparable harm, immediacy of harm and without posting any bond. 

(d) Upon termination of this Agreement, the Company shall promptly pay Director all unpaid, but due, fees and expense reimbursements accrued through the date
of termination, if any. 
 8. Confidentiality, Inventions and Non-Competition. 

Director agrees to keep all Company Information provided to him or learned by him in connection with his Service on the Board confidential, subject only to
applicable mandatory legal disclosure requirements. Further, any inventions related to the Company’s business regarding which the Director provides advice, input, direction or Services shall belong exclusively to the Company. And, Director
agrees not to compete with the Company during the term of this Agreement and for a period of two years after his Board Services terminate. Director agrees that the Company has the right of injunctive relief to enforce this provision without need to
show irreparable harm, immediacy of harm and without posting any bond. 
 9. Assignment. 

This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and
permitted assigns and, except as otherwise expressly provided herein, neither this Agreement, nor any of the rights, interests or obligations hereunder shall be assigned by either of the Parties without the prior, express written consent of the
other party. 

  
 4 

 10. General. 

10.1 Governing Law. Except as to matters concerning arbitration, and the separable arbitration provision set forth in this Agreement, which shall be
governed by California law, this Agreement shall otherwise be governed by and construed in accordance with and governed by the laws of the State of Nevada without giving effect to the conflict of law principles of the said state. 

10.2 Notices. In order to be effective, all notices and other communications required or permitted hereunder must be in writing and must be delivered
by hand or by overnight courier, or certified mail, return receipt requested as follows: 
 If to the Company: 

Mail/delivery address: 
 Medbox, Inc. 

Attention: Chief Executive Officer 
 8439 W. Sunset Blvd. Suite
101 
 West Hollywood, Ca 90069 
 If to Director: 

Mail/delivery address: 
 Each party may furnish an address
substituting for the address given above by giving notice to the other party in the manner prescribed by this Section 10.2 (“Notice”). All notices and other communications will be deemed to have been given upon actual receipt by (or
tender to and rejection by) the intended recipient or any other person at the specified address of the intended recipient. 
 10.3 Disputes. In the
event of any dispute or controversy arising out of, or relating to, this Agreement, the parties hereto agree to submit such dispute or controversy to binding arbitration pursuant to either the JAMS Streamlined (for claims under $250,000.00) or the
JAMS Comprehensive (for claims over $250,000.00) Arbitration Rules and Procedures, except as modified herein, including the Optional Appeal Procedure. A sole neutral arbitrator shall be selected from the list (the “List”) of arbitrators
supplied by J.A.M.S. (“JAMS”) Los Angeles County, California office, or any successor entity, or if it no longer exists, from a List supplied by the ADR Services, Inc., in Los Angeles, California (“ADR”) following written request
by any party hereto. If the parties hereto 

  
 5 

 
after notification of the other party(-ies) to such dispute cannot agree upon an arbitrator within thirty (30) days following receipt of the List by all parties to such arbitration, then
either party may request, in writing, that JAMS or ADR, as appropriate, appoint an arbitrator within ten (10) days following receipt of such request (the “Arbitrator”). The arbitration shall take place in Los Angeles County,
California, at a place and time mutually agreeable to the parties or if no such agreement is reached within ten (10) days following notice from the Arbitrator, at a place and time determined by the Arbitrator. Such arbitration shall be
conducted in accordance with the Streamlined Arbitration Rules and Procedures of JAMS then in effect, and Section 1280 et seq. of the California Code of Civil Procedure, or if applicable, the Commercial Arbitration Rules of ADR then in
effect. The preceding choice of venue is intended by the parties to be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Agreement in any jurisdiction
other than that specified in this Section. Each party hereby waives any right it may have to assert the doctrine of forum non conveniens or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this
Section, and stipulates that the Arbitrator shall have in personam jurisdiction and venue over each of them for the purpose of litigating any dispute, controversy, or proceeding arising out of or related to this Agreement. The decision of the
Arbitrator shall be final and binding on all the parties to the arbitration, shall be non-appealable and may be enforced by a court of competent jurisdiction. The prevailing party shall be entitled to recover from the non-prevailing party reasonable
attorney’s fees, as well as its costs and expenses. The Arbitrator may grant any remedy appropriate including, without limitation, injunctive relief or specific performance. 

10.4 Severability. In the event that any provision of this Agreement is held to be unenforceable under applicable law, this Agreement will continue in
full force and effect without such provision and will be enforceable in accordance with its terms. 
 10.5 Construction. The titles of the sections
of this Agreement are for convenience of Reference only and are not to be considered in construing this Agreement. Unless the context of this Agreement clearly requires otherwise: (a) references to the plural include the singular, the singular
the plural, and the part the whole, (b) references to one gender include all genders, (c) “or” has the inclusive meaning frequently identified with the phrase “and/or,” (d) “including” has the inclusive
meaning frequently identified with the phrase “including but not limited to” or “including without limitation,” and (e) references to “hereunder,” “herein” or “hereof” relate to this Agreement
as a whole. Any reference in this Agreement to any statute, rule, regulation or agreement, including this Agreement, shall be deemed to include such statute, rule, regulation or Agreement as it may be modified, varied, amended or supplemented from
time to time. 
 10.6 Entire Agreement. This Agreement embodies the entire agreement and understanding between the parties hereto with respect to the
subject matter of this Agreement and supersedes all prior or contemporaneous agreements and understanding other than this Agreement relating to the subject matter hereof. 

  
 6 

 10.7 Amendment and Waiver. This Agreement may be amended only by a written agreement executed by the
parties hereto. No provision of this Agreement may be waived except by a written document executed by the party entitled to the benefits of the provision. No waiver of a provision will be deemed to be or will constitute a waiver of any other
provision of this Agreement. A waiver will be effective only in the specific instance and for the purpose for which it was given, and will not constitute a continuing waiver. 

10.8 Counterparts. This Agreement may be in any number of counterparts, each of which will be deemed an original, but all of which together will
constitute one instrument. 
  

			
	 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of

the date first written above.

	
	MEDBOX, Inc. (“Medbox” or “Company”)
		
	By:		/s/ Guy Marsala
		 	  

	Name:		Guy Marsala
	Title:		CEO
	
	DIRECTOR:
		
	By		/s/ Mitch Lowe
		 	  

			Mitch Lowe
	
	Shareholder consent by Vincent Mehdizadeh personally and on behalf of any entity he owns or controls which is a Medbox, Inc. shareholder:
	
	/s/ Vincent Mehdizadeh
	  

  
 7

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