Document:

EXHIBIT 4.6  

EIGHTH
AMENDMENT TO REVOLVING LOAN AGREEMENT 

        This
EIGHTH AMENDMENT TO REVOLVING LOAN AGREEMENT dated as of March 2, 2004 (the `Eighth Amendment"), is entered into by and between AAR CORP., a Delaware corporation (the
"Borrower"), and LASALLE BANK NATIONAL ASSOCIATION, a national banking association (the "Bank"). 

R
E C I T A L S: 

        A.    The
Borrower and the, Bank entered into that certain Revolving Loan Agreement dated as of April 11, 2001, as modified, amended and extended from time to time
(collectively, the "Loan Agreement"). 

        .

        B.    At
the present time the Borrower requests, and the Bank is agreeable to amending the Agreement with regard to the sub-facility for issuance of Letters of
Credit, pursuant to the terms and condition hereinafter set forth. 

        NOW
THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Borrower and the Bank hereby
agree as follows: 

A
G R E E M E N T S: 

        1.    RECITALS.    The foregoing Recitals are hereby made a part of this Eighth Amendment. 

        2.    DEFINITIONS.    Capitalized words and phrases used herein without definition shall have the respective meanings
ascribed to such words and phrases in the Loan Agreement. 

        3.    AMENDMENTS TO THE LOAN AGREEMENT.    

        3.2    Letters of Credit.    The first paragraph of Section 2.6 of the Loan Agreement is hereby amended by
deleting the date "July 31, 2004" and inserting in lieu thereof the date of "July 31, 2005". 

        4.    REPRESENTATIONS AND WARRANTIES.    To induce the Bank to enter into this Eighth Amendment, the Borrower hereby
certifies, represents and warrants to the Bank that: 

        4.1.    Organization.    The, Borrower is a corporation duly organized, existing and in good standing under the laws
of the Stake o f Delaware, with full and adequate corporate power to carry on and conduct its business as presently conducted. The Borrower is duly licensed or qualified in all foreign jurisdictions
wherein failure to qualify would have a material adverse effect. The Articles of Incorporation and Bylaws, Borrowing Resolutions and Incumbency Certificate of the Borrower have not been changed or
amended since the most recent date that certified copies thereof were delivered to the Bank. The exact legal name of the Borrower is as set forth in the preamble of this Eighth Amendment, and the
Borrower currently does not conduct, nor has it during the last five (5) years conducted, business under any other name or trade name. The Borrower will not change its name, its organizational
identification number, if it has one, its type of organization, its jurisdiction of organization or other legal structure. 

        4.2.    Authorization.    The Borrower is duly authorized to execute and deliver this Eighth Amendment and is and will
continue to be duly authorized to borrow monies under the Loan Agreement, as amended hereby, and to perform its obligations under the Loan Agreement, as amended hereby. 

        4.3.    No Conflicts.    The execution and delivery of this Eighth Amendment and the performance by the Borrower of
its obligations under the Loan Agreement, as amended hereby, do not and will not conflict with any provision of law or of the articles of incorporation or bylaws of the borrower or of any material
agreement binding upon the Borrower. 

        4.4.    Validity and Binding Effect.    The Loan Agreement, as amended hereby, is a legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws of general
application affecting the enforcement of creditors rights or by general principles of equity limiting the availability of equitable remedies. 

        4.5.    Compliance with Loan Agreement.    The representation and warranties set forth in Section 6 of the Loan
Agreement, as amended hereby, are true and correct with the same effect as if such representations and warranties had been made on the date hereof, with the exception that all references to the
financial statements shall mean the financial statements most recently delivered to the Bank and except for such 

 

changes
as are specifically permitted under the Loan Agreement. In addition, the Borrower has complied with and is in compliance with all of the covenants set forth in the Loan Agreement. 

        4.6.    Event of Default.    As of the date hereof, no Event of Default under the Loan Agreement as mended hereby, or
event or condition, which with the giving of notice or the passage of time or both, would constitute an Event of Default, has occurred or is continuing. 

        5.    CONDITIONS PRECEDENT.    This Eighth Amendment shall become effective as of the date above firs written after
receipt by the Bank of the following documents: 

        5.1.    Eighth Amendment.    This Eighth Amendment executed by the Borrower and the Bank. 

        5.2    Other Documents.    Such other documents, certificates and/or opinions of counsel as the Bank may request., 

        6.    GENERAL.    

        6.1.    Governing Law; Severability.    This Eighth Amendment shall be construed in accordance with and governed by
the laws of Illinois. Wherever possible each provision of the Loan Agreement and this Eighth Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of the Loan Agreement and this Eighth Amend ent shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of the Loan Agreement and this Eighth Amendment 

        6.2.    Successors and Assigns.    This Eighth Amendment shall be binding upon the Borrower and the Bank and their
respective successors and assigns, and shall inure to the benefit of the Borrower and the Bank and the successors and assigns of the Bank. 

        6.3.    Continuing Force and Effect of Loan Documents.    Except as specifically modified or amended by the terms of
this Eighth Amendment, all other terms and provisions of the Loan Agreement and the other Loan Documents are incorporated by reference herein, and in all respects, shall continue in full force and
effect. The Borrower, by
execution of this Eighth Amendment; hereby reaffirms, assumes and binds itself to all of the obligations, duties, rights, covenants, terms and conditions that are contained in the Loan Agreement and
the other Loan Documents. 

        6.4.    References to Loan Agreement.    Each reference in the Loan Agreement to "this Agreement", "hereunder",
"hereof', or words of like import, and each reference to the Loan Agreement in any and all instruments or documents delivered in connection therewith, shall be deemed to refer to the Loan Agreement,
as amended hereby. 

        6.5.    Counterparts.    This Eighth Amendment may be executed in any number of counterparts, all of which shall
constitute one and the same agreement. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Eighth Amendment to Revolving Loan Agreement as of the date first above written. 

	AAR CORP.	 	LASALLE BANK NATIONAL ASSOCIATION
	

By:	
 	

/s/  TIMOTHY J. ROMENESKO      
 TIMOTHY J. ROMENESKO	
 	

By:	
 	

/s/  SCOTT M. CARBON      
 SCOTT M. CARBON
	

Its:	
 	

Vice President	
 	

Its:	
 	

Vice President

2EXHIBIT 4.8  

FIRST AMENDMENT TO
  CREDIT AGREEMENT  

        THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT ("First Amendment") is made as of the 23rd day of January, 2004 by and among AAR CORP., a Delaware
corporation, ("AAR"), AAR Distribution, Inc., an Illinois corporation ("Distribution"), AAR Parts Trading, Inc., an Illinois Corporation ("Parts Trading"), AAR
Manufacturing, Inc., an Illinois corporation ("Manufacturing"), AAR Engine Services, Inc., an Illinois corporation ("Engine Services") and AAR Allen Services, Inc., an Illinois
corporation ("Allen Service") and together with AAR, Distribution, Parts Trading, Manufacturing and Engine Services, individually a "Borrow" and collectively "Borrowers", the financial institutions,
party hereto, each as a "Lender" and Merrill Lynch Capital a division of Merrill Lynch Business Financial Services, Inc., individually as a Lender and as Agent. 

W
I T N E S S E T H: 

        WHEREAS,
Borrowers, Agent and Lenders entered into a certain Credit Agreement dated as of May 29, 2003 (said Credit Agreement is hereinafter referred to as the "Credit
Agreement"); and 

        WHEREAS,
Borrowers desire to amend and modify certain provisions of the Credit Agreement and, subject to the terms hereof, Agent and Lenders are willing to agree to such amendments and
modifications; 

        NOW
THEREFORE, in consideration of the premises, the mutual covenants and agreements herein contained, and any extension of credit heretofore, now or hereafter made by Agent and Lenders
to Borrowers, the parties hereto hereby agree as follows: 

	1.
	Definitions.    All capitalized terms used herein without definition shall have the meaning given to them in the Loan
Agreement.

	2.
	Additional Definitions.    The following definitions of "Convertible Debt Financing", "Convertible Debt Financing Documents",
"Crane Joint Venture" and "Crane Joint Venture Debt Documents" are hereby inserted into Section 1.1 of the Credit Agreement: 

        "Convertible
Debt Financing" means the issuance by AAR CORP. of convertible unsecured Debt up to the principal amount of $100,000,000, which Debt (i) shall be convertible into
shares of AAR CORP.'s common stock; (ii) shall bear interest at a per annum rate not to exceed 45%; and (iii) shall have a maturity date of not earlier than July l, 2006. 

        "Convertible
Debt Financing Documents" means any agreement, documents, instruments, notes, schedules, and exhibits to be executed and/or delivered in connection with the Convertible Debt
Financing and all amendments and/or modifications or any replacements (whether affected upon termination or any time thereafter) and/or refinancings to any of the foregoing (to the extent of any such
amendment, modification, replacement or refinancing is permitted hereunder). 

        "Crane
Joint Venture" means the joint venture relationship to be created by that certain Operating Agreement to be entered into between Crane Aircraft No. 3, LLC and AAR CORP.,
pursuant to that certain Operating Agreement of Crane Aircraft No. 3, LLC by and among the parties identified in Exhibit A thereto as Members and AAR CORP., as Manager, which Operating
Agreement shall be in substantially the form delivered by AAR CORP. to Agent on January 16, 2004. 

        "Crane
Joint Venture Debt Documents" means any agreement, instrument, note, schedules and exhibits to be executed and/or delivered in connection with any Debt incurred by the "Crane
Joint Venture" and all amendments and/or modifications or any replacements (whether effected upon termination or any time thereafter) and/or refinancings to any of the foregoing (to the extent any
such amendment, modification, replacement or refinancing is permitted hereunder). 

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	3.
	Additional Debt.    The following Sections (p) and (q) are inserted into Section 5.1: 

        "Section 5.1 Debt. Borrowers will not, directly or indirectly, create, incur, assume, guarantee or
otherwise become or remain directly or indirectly liable with respect to, any Debt, or any contingent obligations which would be Debt hereunder if they were non-contingent, except for: 

	(p)
	Convertible
Debt Financing; provided that the proceeds thereof are used for the prepayment of outstanding Debt, other working capital
or general corporate purposes or as otherwise agreed to by Agent in its reasonable discretion; and

	(q)
	a
guaranty of Debt incurred by the Crane Joint Venture pursuant to the Crane Joint Venture Debt Documents; provided that the principal
amount of such Debt so guaranteed does not exceed Seven Million Five Hundred Thousand Dollars ($7,500,000)."

	4.
	Restrictive Agreements.    Section 5.4 of the Credit Agreement is hereby deleted and the following is inserted in its
stead (new language is underscored): 

        "Section 5.4    Restrictive Agreements.    Borrowers will not, and will not permit any
Subsidiary to, directly or indirectly (i) enter into or assume any agreement (other than the Financing Documents and, as in effect on the Closing Date, the Indenture Documents, the Note
Purchase Documents and the Securitization Documents and the Convertible Debt Financing Documents) prohibiting the creation or assumption of any Lien
upon the Collateral, whether now owned or hereafter acquired or (ii) create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on
the ability of any Subsidiary to: (1) pay or make Restricted Distributions to any Borrower or any other Wholly-Owned Restricted Subsidiary; (2) pay any Debt owed to any Borrower or any other
Wholly-Owned Restricted Subsidiary; (3) make loans or advances to Borrower or any other Wholly-Owned Restricted Subsidiary; or (4) transfer any of its property or assets to any Borrower
or any other Wholly-Owned Restricted Subsidiary; provided that the provisions of this clause (ii) shall not apply to (a) restrictions and
conditions imposed by law, the Financing Documents, the Indenture Documents, the Note Purchase Documents, the Securitization Documents, the IRB Documents, the Aircraft Lease Documents,  the Convertible Debt Financing Documents
and any agreement, instrument or document evidencing (A) Permitted Mortgage Debt, (B) the
transactions contemplated on Schedule 5.5 and (C) the sale, factoring or other financing of the Air France Parts Lease, (b) customary restrictions and conditions contained in
agreements relating to the sale of a Subsidiary or line of business (including without limitation those transactions listed on Schedule 5.6) pending such sale,  provided such restrictions and
conditions apply only to the Subsidiary or line of business that is to be sold and such sale is permitted hereunder,
(c) customary provisions in leases and other contracts restricting the assignment thereof, and (d) restrictions on the Crane Aircraft No. 3, L.L.C. under
the Crane Joint Venture Debt Documents." 

	5.
	Payments and Modifications of Other Debt.    Section 5.5 of the Credit Agreement is hereby deleted and the following is
inserted in its stead (new language is underscored): 

        "Section 5.5    Payments and Modifications of Other Debt.    Borrower will, and will
not permit any Subsidiary to, directly or indirectly (i) declare, pay, make or set aside any amount for payment in respect of any Permitted Mortgage Debt, any Debt outstanding under the
Indenture Documents, the Aircraft Lease Documents, the IRB Documents, the Note Purchase Documents or the Secuntization Documents, except for regularly scheduled payments of principal and interest (but
no voluntary prepayments) or other amounts in respect of such Debt; or (ii) amend or otherwise modify the terms of the documents or agreements evidencing the Permitted Mortgage Debt or the
Indenture Documents, the Aircraft Lease Documents, the IRB Documents, the Note Purchase Documents or the Securitization Documents if Agent has determined in the reasonable exercise of its discretion
that the effect of such amendment or modification is to affect materially and adversely Borrower's ability to repay the Obligations or Agent's Lien on the Collateral, except for instruments,
amendments, modifications or other documents entered into to effect the transactions described in Schedule 5.5. The foregoing notwithstanding, Borrowers may prepay or repurchase any Debt
outstanding under the Indenture Documents or the Note Purchase Documents and up to $2,300,000 of Debt outstanding under the Aircraft Lease Documents owing to SMBC Leasing and Finance, Inc. or
an Affiliate thereof, if, after giving effect to any such repurchase, (i) no Default or Event of Default has occurred and is continuing; (ii) Borrowers are in compliance on a proforma
basis with the covenants set forth in Article 7 recomputed for the most recently ended quarter for which information is available and are in compliance with all other terms and conditions of
this Agreement; (iii) the amount of such prepayments or repurchases does 

2

 

not
exceed $25,000,000 in any Fiscal Year or $75,000,000 in the aggregate and (iv) prior to the date of any such repurchase or prepayment, a Responsible Officer shall have delivered to Agent a
written certificate in reasonable detail with supporting calculations evidencing or stating that (a) average Availability plus Cash Equivalents,
computed on a pro forma basis after giving effect to any such prepayment or repurchase, for the 60 days immediately prior to the date of any such prepayment or repurchase equals or exceeds
(1) $10,000,000 with respect to prepayments or repurchases of principal payments of Debt outstanding under the Indenture Documents due in October, 2003, up to $1,000,000 per annum of all other
such prepayments or repurchases or permitted repayments or repurchases of Debt outstanding under the Aircraft Lease Documents owed to SMBC Leasing and Finance, Inc. or an Affiliate thereof, or
(2) $30,000,000 with respect to all other such prepayments or repurchases, (b) average projected Availability plus Cash Equivalents,
computed on a pro forma basis after giving effect to any such prepayment or repurchase for the 180 days immediately after the date of such prepayment or repurchase equals or exceeds
(1) $10,000,000 with respect to prepayments or repurchases of Debt outstanding under the Indenture Documents due in October, 2003, up to $1,000,000 per annum of all other such prepayments or
repurchases or permitted repayments or repurchases of Debt outstanding under the Aircraft Lease Documents owed to SMBC Leasing and Finance, Inc. or an Affiliate thereof, or
(2) $30,000,000 with respect "to all other such prepayments or repurchases, and (c) such projected pro forma average Availability plus
Cash Equivalents represents Borrowers' best estimate of Borrowers' future financial performance as of the date of such projections were made, based on assumption, believed by Borrowers on the
applicable date to be fair in light of current business conditions. In addition to and notwithstanding, any of the foregoing, Borrowers mqy prepay or purchase any outstanding
Debt in any amount from the proceeds of the Convertible Debt Financing and no such prepayment or purchase shall be limited by, or shall operate to reduce any of the maximum amounts set forth
above." 

	6.
	Purchase of Assets, Investments.    Section 5.7 of the Credit Agreement is hereby deleted and the following is inserted
in its stead (new language is underscored): 

        "Section 5.7    Purchase of Assets, Investments.    No Borrower will, and no Borrower
will permit any Subsidiary to, directly or indirectly acquire any assets other than (x) in the ordinary course of business, (y) with respect to intercompany Debt permitted hereunder or
(z) to facilitate a transaction in which such Borrower or Subsidiary will incur Permitted Mortgage Debt. No Borrower will and no Borrower will not permit any Subsidiary to, directly or
indirectly make, acquire or own any Investment in any Person other than (a) Investments set forth on the Information Certificate; (b) Cash Equivalents; (c) Investments in Domestic
Subsidiaries, so long as any such Domestic Subsidiary has Guaranteed the Obligations and secured such Guarantee by granting in favor of Agent,
for its benefit and the benefit of the Lenders, a Lien on all or substantially all of that portion of such Domestic Subsidiary's assets which, if owed by a Borrower, would constitute Collateral;
(d) bank deposits established in accordance with Section 5.14; (e) Investments in securities of Account Debtors received pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of such Account Debtors; (f) loans to officers and employees in an aggregate principal amount not to exceed $1,000,000 at any time outstanding;
(g) Investments in Subsidiaries formed after the Closing in order to facilitate any refinancing or replacement of Debt outstanding under the Securitization Documents; (h) Investments in
Subsidiaries formed to facilitate the incurrence of the Permitted Mortgage Debt, which Investments consist of Borrowers Real Property in Wood Dale, Illinois or Garden City, New Jersey;
(i) intercompany Debt permitted pursuant to Section 5.1; (j) Investments in the Crane Joint Venture so long as the amount of any such Investment does not
exceed One Million Five Hundred Thousand Dollars ($1,500,000) plus any amount paid by Borrowers pursuant to Borrowers' guarantee of the Debt incurred by the Crane Joint Venture under the Crane Joint
Venture Debt Documents and (k) other Investments not exceeding $3,000,000 in any Fiscal Year and $9,000,000 in the aggregate so long as at the time of any such
Investment, no Event of Default exists and is continuing. Without limiting the generality of the foregoing, except as otherwise provided above, no
Borrower will, and no Borrower will permit any Subsidiary (except to facilitate a transaction in which such Subsidiary will incur Permitted Mortgage Debt) to, (i) acquire or create any
Subsidiary or (ii) engage, outside of the ordinary course of business, in any joint venture or partnership with any other Person. 

	7.
	Execution in Counterparts.    This First Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 

3

 

	8.
	Continuing Effect.    Except as otherwise specifically set out herein, the provisions of the Credit Agreement shall remain in
full force and effect. 

4

 

(Signature Page to First Amendment to Loan Agreement)  

IN WITNESS WHEREOF, this First Amendment has been duly executed as of the day and year specified at the beginning hereof. 

	
  AAR CORP.

AAR DISTRIBUTION, INC.

AAR PARTS TRADING, INC.

AAR MANUFACTURING, INC.

AAR ENGINE SERVICES, INC.

AAR ALLEN SERVICES, INC.	
 	

MERRILL LYNCH CAPITAL, A

DIVISION OF MERRILL LYNCH

BUSINESS FINANCIAL SERVICES, INC.,

    as Agent and Lender

	

By:	
 	

/s/  TIMOTHY J. ROMENESKO      
	
 	

By:	
 	

/s/  MIKE MEYER      

	Name;	 	TIMOTHY J. ROMENESKO	 	Name:	 	MIKE MEYER
	

Title	
 	

Vice President	
 	

Title:	
 	

Assistant Vice President

5

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