Document:

Exhibit102Form8-K

Exhibit 10.2

Execution Version

SECOND AMENDMENT TO 
REVOLVING CREDIT AGREEMENT

THIS SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT (this “Amendment”), is made and entered into as of December 11, 2012, by and among HEICO CORPORATION, a Florida corporation (the “Borrower”), the several banks and other financial institutions from time to time party hereto (collectively, the “Lenders”) and SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders (the “Administrative Agent”), as issuing bank (the “Issuing Bank”) and as swingline lender (the “Swingline Lender”).

W I T N E S S E T H:

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to a certain Revolving Credit Agreement, dated as of December 14, 2011 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement), pursuant to which the Lenders have made certain financial accommodations available to the Borrower; 
WHEREAS, the Borrower has requested that the Lenders and the Administrative Agent amend certain provisions of the Credit Agreement, and subject to the terms and conditions hereof, the Lenders are willing to do so; 
NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of all of which are acknowledged, the Borrower, the Lenders and the Administrative Agent agree as follows:

1.Amendments.    
(a)    Section 1.1 of the Credit Agreement is amended by replacing the definition of “Consolidated Fixed Charges” in its entirety with the following:
“Consolidated Fixed Charges” shall mean, for the Borrower and its Subsidiaries for any period, the sum (without duplication) of (i) Consolidated Interest Expense paid in cash for such period, (ii) scheduled principal payments paid in cash on Consolidated Total Funded Debt during such period, and (iii) dividends and distributions paid in cash or property other than common stock during such period to holders of Borrower’s capital stock, warrants and related instruments, provided, however, that solely for purposes of calculating the Fixed Charge Coverage Ratio in Section 6.3 of this Agreement, the one-time dividend to be paid on or prior to December 31, 2012 in the amount of $2.14 per share shall be excluded from clause (iii) above.
(b)    Section 7.8 of the Credit Agreement is amended by (a) deleting the “and” before clause (viii), (b) replacing the “.” at the end of such Section with “; and” and (c) adding the following clause (ix) to such Section:

(ix) a one-time dividend to the holders of its Capital Stock in the amount of $1.00 per share (not to exceed $54,000,000 in the aggregate) to be paid on or prior to December 31, 2012.  

2.Conditions to Effectiveness of this Amendment. Notwithstanding any other provision of this Amendment and without affecting in any manner the rights of the Lenders hereunder, it is understood and agreed that this Amendment shall not become effective, and the Borrower shall have no rights under this Amendment, until the Administrative Agent shall have received (i) an amendment fee in the amount of 0.025% of the Revolving Commitments of those Lenders executing this Amendment, to be applied pro rata among such Lenders, (ii) such other fees as the Borrower has previously agreed to pay the Administrative Agent or any of its affiliates in connection with this Amendment, (iii) reimbursement or payment of the costs and expenses of the Administrative Agent incurred in connection with this Amendment or the Credit Agreement (including reasonable fees, charges and disbursements of King & Spalding LLP, counsel to the Administrative Agent), and (iv) executed counterparts to this Amendment from the Borrower, each of the Guarantors and Lenders constituting at least the Required Lenders. 

3.Representations and Warranties.  To induce the Lenders and the Administrative Agent to enter into this Amendment, each Loan Party hereby represents and warrants to the Lenders and the Administrative Agent: 

(a)    The Borrower and each of its Subsidiaries (i) is duly organized, validly existing and in good standing as a corporation, partnership or limited liability company under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority to carry on its business as now conducted except where a failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect, (iii) has all licenses and permits necessary to carry on and conduct its business in all states and localities wherein it now operates and (iv) is duly qualified to do business, and is in good standing, in each jurisdiction where such qualification is required, except where a failure to be so qualified could not reasonably be expected to result in a Material Adverse Effect;

(b)    The execution, delivery and performance by each Loan Party of the Loan Documents to which it is a party are within such Loan Party’s organizational powers and have been duly authorized by all necessary organizational, and if required, shareholder, partner or member, action; 

(c)    The execution, delivery and performance by the Borrower of this Agreement, and by each Loan Party of the other Loan Documents to which it is a party (i) do not require any consent or approval of, registration or filing with, or any action by, any Governmental Authority, except those as have been obtained or made and are in full force and effect, (ii) will not violate any Requirements of Law applicable to the Borrower or any of its Subsidiaries or any judgment, order or ruling of any Governmental Authority, (iii) will not violate or result in a default under any indenture, agreement or other instrument binding on the Borrower or any of its Subsidiaries or any of its assets or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries and (iv) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries, except Liens (if any) created under the Loan Documents;

(d)    This Amendment has been duly executed and delivered for the benefit of or on behalf of each Loan Party and constitutes a valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms except as the enforceability hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity; and

(e)    Immediately after giving effect to this Amendment, all representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects.  No Default or Event of Default has occurred and is continuing as of the date hereof or would occur as after giving effect to this Amendment.  Since the date of the financial statements of the Borrower described in Section 4.4 of the Credit Agreement, there shall have been no change which has had or could reasonably be expected to have a Material Adverse Effect.

4.Reaffirmations.  

(a)    Reaffirmation of Subsidiary Guaranty Agreement.  Each Subsidiary Loan Party consents to the execution and delivery by the Borrower of this Amendment and jointly and severally ratify and confirm the terms of the Subsidiary Guaranty Agreement with respect to the indebtedness now or hereafter outstanding under the Credit Agreement as amended hereby and all promissory notes issued thereunder. Each Subsidiary Loan Party acknowledges that, notwithstanding anything to the contrary contained herein or in any other document evidencing any indebtedness of the Borrower to the Lenders or any other obligation of the Borrower, or any actions now or hereafter taken by the Lenders with respect to any obligation of the Borrower, the Subsidiary Guaranty Agreement (i) is and shall continue to be a primary obligation of the Subsidiary Loan Parties, (ii) is and shall continue to be an absolute, unconditional, joint and several, continuing and irrevocable guaranty of payment, and (iii) is and shall continue to be in full force and effect in accordance with its terms.  Nothing contained herein to the contrary shall release, discharge, modify, change or affect the original liability of the Subsidiary Loan Parties under the Subsidiary Guaranty Agreement.  

5.Effect of Amendment.  Except as set forth expressly herein, all terms of the Credit Agreement, as amended hereby, and the other Loan Documents shall be and remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligations of the Borrower to the Lenders and the Administrative Agent.  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 under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.  This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement.

6.Governing Law.   This Amendment shall be governed by, and construed in accordance with, the internal laws of the State of Florida and all applicable federal laws of the United States of America.

7.No Novation.  This Amendment is not intended by the parties to be, and shall not be construed to be, a novation of the Credit Agreement or an accord and satisfaction in regard thereto.

8.Costs and Expenses.  The Borrower agrees to pay on demand all reasonable, documented, out-of-pocket expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and out-of-pocket expenses of outside counsel for the Administrative Agent with respect thereto.

9.Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by facsimile transmission or by electronic mail in pdf form shall be as effective as delivery of a manually executed counterpart hereof.

10.Binding Nature.  This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors, successors-in-titles, and assigns.

11.Entire Understanding.  This Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto.

[Signature Pages To Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed, under seal in the case of the Borrower and the Subsidiary Loan Parties, by their respective authorized officers as of the day and year first above written.

BORROWER:

HEICO CORPORATION

		
	By:
	/s/ CARLOS L. MACAU, JR.

		
	Name:
	Carlos L. Macau, Jr.

		
	Title: 
	Chief Financial Officer and Treasurer

SUBSIDIARY LOAN PARTIES:

16-1741 PROPERTY, INC. 
3D ACQUISITION CORP.
3D PLUS U.S.A., INC.
ACTION RESEARCH CORPORATION
AD HEICO ACQUISITION CORP.
AERODESIGN, INC.
AIRCRAFT TECHNOLOGY, INC.
ANALOG MODULES, INC.
ARGER ENTERPRISES, INC.
ATK ACQUISITION CORP.
AVIATION ENGINEERED SERVICES CORP.
AVIATION FACILITIES, INC.
BATTERY SHOP, L.L.C.
BLUE AEROSPACE LLC
CONNECTRONICS CORP.
CONXALL CORPORATION
CSI AEROSPACE, INC.
DB CONTROL, CORP.
DEC TECHNOLOGIES, INC.
DE-ICING INVESTMENT HOLDINGS     CORP.
DIELECTRIC SCIENCES, INC.
DUKANE SEACOM, INC.
DYNATECH ACQUISITION, CORP.
EMD ACQUISITION CORP.
ENGINEERING DESIGN TEAM, INC.
FERRISHIELD, INC.
FUTURE AVIATION, INC.
HEICO AEROSPACE CORPORATION
HEICO AEROSPACE PARTS CORP.
HEICO EAST CORPORATION 
HEICO ELECTRONIC TECHNOLOGIES CORP.
HEICO FLIGHT SUPPORT CORP.

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

HEICO PARTS GROUP, INC.
HNW BUILDING CORP.
HNW 2 BUILDING CORP.
HVT GROUP, INC.
INERTIAL AIRLINE SERVICES, INC.
IRCAMERAS LLC
JA ENGINEERING I CORP.
JA ENGINEERING II CORP.
JET AVION CORPORATION
JETSEAL, INC.
LEADER TECH, INC.
LPI INDUSTRIES CORPORATION 
LUMINA POWER, INC.
MCCLAIN INTERNATIONAL, INC.
MCCLAIN PROPERTY CORP.
MEREDIAN INDUSTRIAL, INC.
NIACC-AVITECH TECHNOLOGIES, INC.
NORTHWINGS ACCESSORIES CORP.
PRIME AIR, LLC 
RADIANT POWER CORP.
RAMONA RESEARCH, INC. 
ROGERS-DIERKS, INC.
SANTA BARBARA INFRARED, INC.
SEAL DYNAMICS LLC 
SIERRA MICROWAVE TECHNOLOGY, LLC 
SUNSHINE AVIONICS, LLC 
SWITCHCRAFT HOLDCO, INC.
SWITCHCRAFT, INC.
THERMAL STRUCTURES, INC.
TURBINE KINETICS, INC.

                            
		
	By:
	/s/ CARLOS L. MACAU, JR.

		
	Name:
	Carlos L. Macau, Jr.

		
	Title: 
	Chief Financial Officer and Treasurer

                            
HEICO AEROSPACE HOLDINGS CORP.

		
	By:
	/s/ THOMAS S. IRWIN

		
	Name:
	Thomas S. Irwin

		
	Title: 
	Treasurer

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

LENDERS:

SUNTRUST BANK, as a Lender

    
		
	By:
	/s/ DON CAPISANO

		
	Name:
	Don Capisano

		
	Title: 
	Senior Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

WELLS FARGO BANK, NATIONAL
ASSOCIATION, as a Lender

		
	By:
	/s/ ALINA CANNON

		
	Name:
	Alina Cannon

		
	Title: 
	Senior Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

BANK OF AMERICA, N.A., as a Lender

		
	By:
	/s/ DAVID GUTIERREZ

		
	Name:
	David Gutierrez

		
	Title: 
	Senior Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

PNC BANK, NATIONAL ASSOCIATION,
as a Lender

		
	By:
	/s/ JOSE MAZARIEGOS

		
	Name:
	Jose Mazariegos

		
	Title: 
	Senior Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

BRANCH BANKING AND TRUST
COMPANY, as a Lender

		
	By:
	/s/ LIAM N. GOLIGHTLEY

		
	Name:
	Liam N. Golightley

		
	Title: 
	Assistant Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

US BANK, NATIONAL ASSOCIATION,
as a Lender

		
	By:
	/s/ MICHAEL P. DICKMAN

		
	Name:
	Michael P. Dickman

		
	Title: 
	Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

RBS CITIZENS, N.A., as a Lender

		
	By:
	/s/ DONALD A. WRIGHT

		
	Name:
	Donald A. Wright

		
	Title: 
	Senior Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

SYNOVUS BANK, as a Lender

		
	By:
	/s/ MICHAEL SAWICKI

		
	Name:
	Michael Sawicki

		
	Title: 
	Corporate Banking

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

THE NORTHERN TRUST COMPANY, as
a Lender

		
	By:
	/s/ PATRICK COWAN

		
	Name:
	Patrick Cowan

		
	Title: 
	Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

JPMORGAN CHASE BANK, N.A., as 
a Lender

		
	By:
	/s/ ALEX ABREU

		
	Name:
	Alex Abreu

		
	Title: 
	Managing Director

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

SABADELL UNITED BANK, N.A., as 
a Lender

By:    
Name:
Title:

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

FIFTH THIRD BANK, AN OHIO
BANKING CORPORATION, as a Lender

		
	By:
	/s/ JOHN A. MARIAN

		
	Name:
	John A. Marian

		
	Title: 
	Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

MERCANTIL COMMERCEBANK, N.A., as
a Lender

By:    
Name:
Title:

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]

FLORIDA COMMUNITY BANK N.A., as 
a Lender

    
		
	By:
	/s/ JOSE M. CRUZ

		
	Name:
	Jose M. Cruz

		
	Title: 
	Senior Vice President

[SIGNATURE PAGE TO SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT]EX 10.1 Agrrement - 01

 
EXHIBIT 10.1

AGREEMENT

THIS AGREEMENT (this “Agreement”), effective as of December 11, 2012 (the “Effective Date”), by and between Vector Group Ltd., a Delaware corporation (the “Company”), and Howard M. Lorber (the “Executive”).  
WITNESSETH:
A.  WHEREAS, the Executive serves as the President and Chief Executive Officer of the Company, pursuant to an Amended and Restated Employment Agreement dated as of January 27, 2006 (as amended, restated, supplemented or otherwise modified from time to time, the “Employment Agreement”); and
B.  WHEREAS, pursuant to a Restricted Share Award Agreement, effective as of April 7, 2009, between the Company and the Executive (as amended, restated, supplemented or otherwise modified from time to time, the “Award Agreement”), the Company previously granted to the Executive 607,753 shares (collectively, the “Award Shares”) of its Common Stock, $.10 par value per share (the “Common Stock”), pursuant to the Company's Amended and Restated 1999 Long-Term Incentive Plan (as amended, restated, supplemented or otherwise modified from time to time, the “Plan”); and
C.  WHEREAS, pursuant to the terms of the Award Agreement and the Plan, the Executive is entitled to receive dividends declared by the Company with respect to any unvested portion of the Award Shares; and
D.  WHEREAS, as of the Effective Date, 121,550 Award Shares are scheduled to vest on September 15, 2013 and 121,551 Award Shares are scheduled to vest on September 15, 2014 (the “Remaining Award Shares”); and
E.  WHEREAS, in accordance with the terms of the Award Agreement and the Plan, the Compensation Committee of the Company's Board of Directors (the “Committee”) has agreed to (i) accelerate the vesting schedules of the Remaining Award Shares to the Effective Date, and (ii) pay all accrued and unpaid dividends on the Remaining Award Shares (the “Accrued Dividends”) to the Executive on the Effective Date, provided that the Executive concurrently enters into this Agreement with respect to such shares and dividends (the “Acceleration”);
NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the Company and the Executive hereby agree as follows:
1.  Upon the vesting of the Remaining Award Shares on the Effective Date, the Remaining Award Shares shall be freely transferable, subject to any restrictions on transfer required by applicable United States federal and state securities laws.  
2.  In connection with, and as consideration for, the Acceleration, the Executive hereby agrees as follows:        
a.  In the event the Executive's employment with the Company terminates between the Effective Date and September 15, 2014 (any such termination date, the “Termination Date”) and, pursuant to the terms of 

the Award Agreement and the Plan, the Executive would have otherwise had to forfeit any or all of the Remaining Award Shares (assuming the Acceleration had not occurred) (the number of shares of Common Stock, the “Replacement Shares”), the Executive shall, as promptly as practicable, but in no event more than ten (10) business days after such termination, transfer to the Company shares of Common Stock and/or cash in the amounts set forth immediately below, without payment in either case of additional consideration by the Company:
(i) either shares of Common Stock (the “Termination Date Replacement Shares”) with a value equal to, or cash in an amount equal to, the Fair Market Value of the Replacement Shares; plus 
(ii) an amount in cash equal to the amount of the Accrued Dividends; plus 
(iii) an amount in cash equal to any other dividends declared on the Replacement Shares between the Effective Date and the Termination Date.
For purposes of this Section 2(a), the “Fair Market Value” of shares of Common Stock shall be calculated by reference to the closing price of the Company's Common Stock on the New York Stock Exchange on the Termination Date.  
Any cash payment shall be made by wire transfer of immediately available funds to the account designated by the Company.  Notwithstanding the foregoing, in the event that a transfer of the Termination Date Replacement Shares would obligate the Executive to disgorge profits under Section 16 of the Securities Exchange Act of 1934, as amended (“Section 16”), the Executive shall transfer the Termination Date Replacement Shares to the Company within ten (10) business days following the date on which disgorgement under Section 16 becomes inapplicable; provided that in no event shall the transfer occur more than six (6) months from the Executive's termination date.
b.  The Executive shall be solely responsible for any and all fees, expenses and taxes associated with the transfer of the Termination Date Replacement Shares to the Company.  In the event of a default by the Executive under Section 2(a) of this Agreement, the Executive hereby consents to a deduction from any severance amounts or other payments the Company may owe the Executive from time to time after the date of the Executive's termination with the Company, to the extent of the amounts the Executive owes the Company pursuant to the terms of this Agreement.   In addition, in the event of a breach of the Executive's obligations under this Agreement, the Executive agrees to pay to the Company all costs of enforcement of this Agreement, including, but not limited to reasonable attorney fees.  

3.  This Agreement and any obligations hereunder shall not be assigned, pledged, alienated, sold, attached, encumbered or transferred in any way by the Executive and any attempt to do so shall be void.  The Company may assign or transfer its rights and obligations under this Agreement, provided that the assignee or transferee is the successor to all or substantially all of the assets of the Company.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, heirs (in the case of the Executive) and assigns.

4.  This Agreement shall not confer upon the Executive any right to continued employment with the Company, nor shall it interfere in any way with the right of the Company to terminate the employment of the Executive pursuant to the terms of the Employment Agreement.  

5.  In the event of any change in the outstanding shares of the same class of shares of the Company as the Replacement Shares, the Accrued Dividends, or any other dividends declared on the Replacement Shares by reason of a stock dividend, recapitalization, merger, consolidation, split-up, subdivision, 

contribution or exchange of shares, or the like, the aggregate amount the Executive owes the Company pursuant to the terms of this Agreement shall be proportionately adjusted by the Company.

6.  If any provision of this Agreement shall, for any reason, be adjudicated by any court of competent jurisdiction to be invalid or unenforceable, such judgment shall not effect, impair or invalidate the remainder of this Agreement but shall be confined in its operation to the jurisdiction in which made and to the provisions of this Agreement directly involved in the controversy in which such judgment shall have been rendered. 

7.  This Agreement may be modified only by a writing signed by both parties hereto, and then only to the extent expressly set forth in such writing.  The waiver by any party of a breach or violation of any provision of this Agreement shall not operate as, or be construed to constitute, a waiver of any subsequent breach or violation of the same or other provision hereof.  Any waiver must be in writing.

8.  This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument, and all signatures need not appear on any one counterpart. 

9.  This Agreement and all actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to the principles of conflict of laws thereof.  The Company and the Executive each hereby irrevocably waives any right it may have to a trial by jury in respect of any claim based upon or arising out of this Agreement or any transaction contemplated hereby.

10.  This Agreement embodies the entire understanding, and supersedes all other oral or written agreements or understandings, between the parties regarding the subject matter hereof.  

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.

	
			
	 
	VECTOR GROUP LTD.

	 
	 

	 
	By:
	/s/ J. Bryant Kirkland III  

	 
	 
	J. Bryant Kirkland III 

	 
	 
	Vice President, Treasurer and Chief Financial Officer 

	 
	 
	 

	 
	 
	/s/ Howard M. Lorber

	 
	 
	Howard M. Lorber

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