Document:

EX-4.1

 

TIMCO AVIATION SERVICES, INC.,

f/k/a AVIATION SALES COMPANY,

Issuer,

THE SUBSIDIARY GUARANTORS NAMED HEREIN

and

HSBC BANK USA, NATIONAL ASSOCIATION

(as successor to HSBC Bank USA)

Trustee

SUPPLEMENTAL INDENTURE

Dated as of October 12, 2005

8.00% SENIOR SUBORDINATED CONVERTIBLE PIK NOTES DUE 2006

Supplementing the Indenture dated as of February 28, 2002 among TIMCO AVIATION SERVICES, INC.,
f/k/a AVIATION SALES COMPANY, and AVIATION SALES DISTRIBUTION SERVICES COMPANY, AVIATION SALES
LEASING COMPANY, TMAS/ASI, INC., AVS/M-1, INC., AVS/M-2, INC., AVS/M-3, INC., AVIATION SALES
PROPERTY MANAGEMENT CORP., TIMCO ENGINE CENTER, INC., WHITEHALL CORPORATION, TRIAD INTERNATIONAL
MAINTENANCE CORPORATION, AVS/CAI, INC., AIRCRAFT INTERIOR DESIGN, INC., HYDROSCIENCE, INC., TIMCO
ENGINEERED SYSTEMS, INC., AVSRE, L.P., and BRICE MANUFACTURING COMPANY, INC. as Guarantors, and
HSBC Bank USA, National Association (as successor to HSBC Bank USA) as Trustee, as such Indenture
was supplemented before the date hereof.

 

 

     THIS SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of October 12,
2005, among TIMCO Aviation Services, Inc., f/k/a Aviation Sales Company, a Delaware corporation
(the “Company”), Aviation Sales Distribution Services Company, Aviation Sales Leasing
Company, TMAS/ASI, Inc., AVS/M-1, Inc., AVS/M-2, Inc., AVS/M-3, Inc., Aviation Sales Property
Management Corp., Timco Engine Center, Inc., Whitehall Corporation, Triad International Maintenance
Corporation, AVS/CAI, Inc., Aircraft Interior Design, Inc., Hydroscience, Inc., Timco Engineered
Systems, Inc., AVSRE, L.P., and Brice Manufacturing Company, Inc. (collectively, the
“Subsidiary Guarantors”) and HSBC Bank USA, National Association, a national banking
corporation (as successor to HSBC Bank USA), as Trustee (the “Trustee”), under the
Indenture dated as of February 28, 2002, among the Company, certain of the Subsidiary Guarantors
and the Trustee, (as supplemented before the date hereof, the “Indenture”). Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings assigned to
them in the Indenture.

W I T N 
E S S E T H:

     WHEREAS, the Company has issued its 8.00% Senior Subordinated Convertible PIK Notes due 2006
(the “Notes”) pursuant to the Indenture;

     WHEREAS, the Company has made an offer to Holders of the Notes (the “Early Conversion
Offer”) for the early conversion of the Notes into Company common stock, as more particularly
described in the Company’s Offering Circular dated August 17, 2005;

     WHEREAS, in connection with the Early Conversion Offer, the Company has requested that Holders
of the Notes deliver their consents with respect to amendments of certain provisions of the
Indenture;

     WHEREAS, Section 9.02 of the Indenture provides that, subject to certain restrictions, with
the consent of the Holders of at least a majority in principal amount of the Notes then outstanding
voting as a single class, the Company, when authorized by a resolution of its Board of Directors,
the Subsidiary Guarantors and the Trustee may, from time to time and at any time, enter into an
indenture or indentures supplemental to the Indenture for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of the Indenture or of any
supplemental indenture or of modifying in any manner the rights of the Holders of the Notes;

     WHEREAS, the Holders of not less than a majority in principal amount of the Notes outstanding
have duly consented to the proposed modifications set forth in this Supplemental Indenture in
accordance with Section 9.02 of the Indenture;

     WHEREAS, in accordance with Section 9.02 of the Indenture, the Company has heretofore
delivered or is delivering contemporaneously herewith to the Trustee (i) a copy of resolutions of
the Board of Directors of the Company, certified by the Secretary or an Assistant Secretary of the
Company, authorizing the execution, delivery and performance of this Supplemental Indenture, and
(ii) evidence of the written consent of the Holders referenced in the immediately preceding
paragraph;

 

 

     WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental
Indenture and to make this Supplemental Indenture valid and binding have been complied with or have
been done or performed; and

     NOW, THEREFORE, in consideration of the foregoing and notwithstanding any provision of the
Indenture which, absent this Supplemental Indenture, might operate to limit such action, the
parties hereto, intending to be legally bound hereby, agree as follows.

ARTICLE ONE

AMENDMENTS

     SECTION 1.01. Deleted Sections and Article. Subject to Section 2.01 hereof, the Indenture is
hereby amended by deleting in their entireties the current texts of the provisions of Sections
3.09, 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.18, 5.01(a) — (b),
6.01(c) — (d), 6.03, and 11.04(b) — (d) and substituting for the texts of each of those provisions
the words “This provision is intentionally omitted.” Effective as of the date hereof, none of the
Company, the Subsidiary Guarantors, the Trustee or other parties to or beneficiaries of the
Indenture shall have any rights, obligations or liabilities under such deleted Sections or Article
and such Sections and Article shall not be considered in determining whether a Default or Event of
Default has occurred or whether the Company or any of the Subsidiary Guarantors has observed,
performed or complied with the provisions of the Indenture.

     SECTION 1.02. Deleted Definitions. Subject to Section 2.01 hereof, the Indenture is hereby
amended by deleting any definitions from the Indenture with respect to which references would be
eliminated as a result of the amendment of the Indenture pursuant to Section 1.01 hereof.

ARTICLE TWO

MISCELLANEOUS

     SECTION 2.01. Terms to Remain in Effect. Except as waived or amended hereby, all of the terms
of the Indenture shall remain and continue in full force and effect and are hereby confirmed in all
respects. From and after the date of this Supplemental Indenture, all references to the Indenture
(whether in the Indenture or in any other agreements, documents or instruments) shall be deemed to
be references to the Indenture as amended and supplemented by this Supplemental Indenture. On the
date the tenders of Notes pursuant to the Early Conversion Offer are accepted for payment this
Supplemental Indenture will become operative as of the date hereof.

     SECTION 2.02. Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE
USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

2

 

     SECTION 2.03. Execution in Counterparts. This Supplemental Indenture may be executed in any
number of counterparts, each of which shall be an original; but such counterparts shall constitute
but one and the same instrument.

     SECTION 2.04. Trustee Not Liable. The recitals contained herein shall be taken as the
statement of the Company, and the Trustee assumes no responsibility whatsoever for their
correctness nor for the validity or sufficiency of this Supplemental Indenture or for the due
execution hereof by the Company.

     SECTION 2.05. Trustee Entitled to Benefits. Subject to Article One hereof, in entering into
this Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the
Indenture relating to the conduct or affecting the liability of or affording protection to the
Trustee, whether or not elsewhere herein so provided.

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed all as of the date first written above.

	 	 	 	 	 
	 	TIMCO AVIATION SERVICES, INC., f/k/a
AVIATION SALES
COMPANY

 	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name: 	Roy T. Rimmer, Jr.  	 	 
	 	Title: 	Chairman, CEO  	 	 
	 
	 	AVIATION SALES DISTRIBUTION SERVICES
COMPANY

 	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name: 	Roy T. Rimmer, Jr.  	 	 
	 	Title: 	Chairman, CEO  	 	 
	 
	 	AVIATION SALES LEASING COMPANY

 	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name: 	Roy T. Rimmer, Jr.  	 	 
	 	Title: 	Chairman, CEO  	 	 
	 

3

 

	 	 	 	 	 
	 	TMAS/ASI, INC. 

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	AVS/M-1, INC.

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	AVS/M-2, INC.

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	AVS/M-3, INC.

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	AVIATION SALES PROPERTY
 MANAGEMENT CORP.

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

4

 

	 	 	 	 	 
	 	TIMCO ENGINE CENTER, INC. 

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	WHITEHALL CORPORATION

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	TRIAD INTERNATIONAL MAINTENANCE CORPORATION

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	AVS/CAI, INC.

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	AIRCRAFT INTERIOR DESIGN, INC.

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	 	HYDROSCIENCE, INC.

 	 
	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

5

 

	 	 	 	 	 
	 	TIMCO ENGINEERED SYSTEMS, INC. 

 	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 	 	 
	 	 	AVSRE, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Aviation Sales Property Management Corp.,
	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Roy T. Rimmer, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Roy T. Rimmer, Jr.	 	 
	 

	 	 	 	Title: Chairman, CEO	 	 

	 	 	 	 	 
	 	BRICE MANUFACTURING COMPANY, INC.

 	 
	 	By:  	/s/ Roy T. Rimmer, Jr.
 	 
	 	Name:  	Roy T. Rimmer, Jr. 	 
	 	Title:  	Chairman, CEO 	 
	 

	 	 	 	 	 
	HSBC BANK USA, NATIONAL ASSOCIATION	 	 
	(as successor to HSBC Bank USA) as Trustee	 	 
	 
	 	 	 	 
	By:

	 	/s/ Frank Godino	 	 
	Name:

	 	 

Frank Godino
	 	 
	Title:

	 	Vice President	 	 

6Exhibit 10.1

 

Exhibit 10.1

ROBBINS & MYERS, INC.

FORM OF OPTION AWARD AGREEMENT

This OPTION AWARD AGREEMENT (“Agreement”) is entered into as of the Award Date set forth
below between ROBBINS & MYERS, INC., an Ohio corporation (the “Company”), and Employee
listed in Section 1.1.

     A. The Company from time to time grants to employees Options to purchase Common Shares of the
Company (“Common Shares”) as Awards under the Company’s 2004 Incentive Stock Plan As
Amended (the “Plan”), a copy of which has been provided to Employee and is incorporated
herein by this reference;

     B. For the purpose of encouraging Employee to acquire a proprietary interest in the Company
through stock ownership, to continue in the service of the Company and its Subsidiaries, and to
render superior performance during the period of employment, the Compensation Committee (the
“Committee”) of the Board of Directors (the “Board”) of the Company has determined
that an Option should be granted under the Plan to Employee; and

     C. Any capitalized term used herein that is not defined herein shall have the meaning ascribed
to it in the Plan.

NOW, THEREFORE, THE COMPANY AND EMPLOYEE INTENDING TO BE LEGALLY BOUND HEREBY AGREE AS FOLLOWS:

SECTION 1. GRANT AND EXERCISE OF OPTION.

1.1 Grant of Option.

The Company hereby grants to Employee an Option under the Plan to purchase Common Shares as
follows:

	 	 	 	 	 	 	 
	Employee:
	 	 	 	 	 	 
	 	 	 
	Number
of Common 
    Shares
subject to 
    Option:
	 	 	 	 	 	 
	 	 	 
	Option exercise price 
    per share

	 	$	 	 	 	 
	 	 	 
	Date of Grant of 
    Option (also referred to
    
as “Award Date”)

	 	 	,	 
	 	 
	 	 	 	 	 	 	 
	Plan Name:

	 	2004 Stock Incentive Plan As Amended
	 	 
	Type of Option:

	 	Nonqualified Stock Option
	 	 
	Date Option becomes 
    exercisable:

	 	One-Third of the shares become exercisable on the first,
second, and third annual anniversary date of the Award Date.
	 

Exhibit 10.1

 

 

	 	 	 	 	 	 	 
	Term
of Option (“Term”):

	 	Ten years	 	 	 	 
	Expiration Date of Option:

	 	 	,	 
	 	 
	 	 	 	 	 	 	 

1.2 Conditions Relating to Exercise of Option.

The Option may not be exercised after Employee’s employment with the Company has terminated except
that the Option may during its Term be exercised (i) within 30 days after Employee’s employment
with the Company ceases, if the cause of cessation of employment was other than retirement,
disability, death or termination of employment by the Company for Gross Misconduct; (ii) within one
year of cessation of employment in the case of early retirement; and (iii) within three years of
cessation of employment in the case of normal retirement, death or disability. After termination
of employment, the Option may be exercised only to the extent it could have been exercised on the
date of Employee’s termination of employment. Whether authorized leave of absence or absence for
military or governmental service shall constitute a termination of employment or other service
shall be determined by the Committee.

1.3 Exercise of Option.

(a) Notice of Exercise. The Option may be exercised in whole or in part by written
notice in the form required by the Company, together with payment of the aggregate exercise price
therefor.

(b) Payment of Option Exercise Price. Payment of the exercise price may be made as
follows: (i) in cash, (ii) payment in Common Shares that have been held by Employee for at least
six months by actual delivery of such Common Shares to the Company or in accordance with the
attestation procedure at Section 6.7 of the Plan, valued at the Fair Market Value of such shares on
the date of exercise, (iii) by a delivery of a notice in the form acceptable to the Committee that
Employee has placed a market sell order (or similar instruction) with a broker with respect to
Common Shares then issuable upon exercise of the Option, and that the broker has been directed to
pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the
exercise price (conditioned upon the payment of such net proceeds), or (iv) by a combination of the
methods described above.

(c) Payment of Applicable Taxes. 

No shares shall be delivered upon exercise of the Option until any taxes payable with respect to
the exercise of the Option have been withheld by the Company or paid by Employee. Employee may use
Common Shares to pay the Company all or any part of the mandatory federal, state or local
withholding tax payments at the time of exercise of the Option by following any of the methods of
payment set forth in Section 1.3(b) for use in connection with payment of the exercise price of the
Option.

Exhibit 10.1

 

 

(d) Change of Control. In the event of a Change of Control of the Company, the Option, to
the extent it is not exercisable, shall become fully exercisable and vested on the date the Change
of Control is deemed to have occurred.

SECTION 2. RESTRICTIONS ON TRANSFER

Except as provided in Section 12.2 of the Plan, the Option shall not be assigned, transferred,
pledged, or otherwise encumbered by Employee, otherwise than by will or by the laws of descent and
distribution, or be made subject to execution, attachment or similar process. Except as provided
in Section 12.2 of the Plan, the Option shall be exercisable during Employee’s lifetime only by
Employee or, if permissible under applicable law, by Employee’s guardian or legal representative.

SECTION 3. REPRESENTATIONS OF EMPLOYEE.

Employee hereby represents to the Company that Employee has read and understands the provisions of
this Agreement and the Plan, and Employee acknowledges that Employee is relying solely on his or
her own advisors with respect to the tax consequences of exercising an Option.

SECTION 4. NOTICES.

All notices or communications under this Agreement shall be in writing, addressed as follows:

			
	To the Company:	 	Robbins & Myers, Inc.

1400 Kettering Tower

Dayton, Ohio 45423

Attention: Vice President, Human Resources

			
	To Employee:	 	At the last residence address of Employee on file with the Company.

Any such notice or communication shall be (a) delivered by hand (with written confirmation of
receipt) or sent by a nationally recognized overnight delivery service (receipt requested), (b) be
sent certified or registered mail, return receipt requested, postage prepaid, addressed as above
(or to such other address as such party may designate in writing from time to time), or (c) be
given electronically, if receipt is confirmed electronically to the sender within 24 hours and the
actual date of receipt shall determine the time at which notice was given.

SECTION 5. DEFINITIONS.

(a) “Change of Control” means and shall be deemed to have occurred on (i) the date upon which the
Company is provided a copy of a Schedule 13D, filed pursuant to Section 13(d) of the Securities
Exchange Act of 1934 indicating that a group or person, as defined

Exhibit 10.1

 

 

in Rule 13d-3 under said Act, has become the beneficial owner of 20% or more of the outstanding
Voting Shares or the date upon which the Company first learns that a person or group has become the
beneficial owner of 20% or more of the outstanding Voting Shares if a Schedule 13D is not filed;
(ii) the date of a change in the composition of the Board such that individuals who were members of
the Board on the date two years prior to such change (or who were subsequently elected to fill a
vacancy in the Board, or were subsequently nominated for election by the Company’s shareholders, by
the affirmative vote of at least two-thirds of the directors then still in office who were
directors at the beginning of such two year period) no longer constitute a majority of the Board;
(iii) the date the shareholders of the Company approve a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation which would result in the Voting
Shares of the Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Shares of the surviving entity) at least
80% of the total voting power represented by the Voting Shares of the Company or such surviving
entity outstanding immediately after such merger or consolidation; or (iv) the date shareholders of
the Company approve a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all the Company’s assets.

(b) “Company” means Robbins & Myers, Inc., an Ohio corporation, and when used with reference to
employment of Employee, Company includes any Subsidiary of the Company.

(c) “Fair Market Value” means the average of the high and low prices of a Common Share on the date
when the value of a Common Share is to be determined, as reported on the New York Stock
Exchange-Composite Transactions Tape; or, if no sale of Common Shares is reported on such date,
then the next preceding date on which a sale occurred; or if the Common Shares are no longer listed
on such exchange, the determination of such value shall be made by the Committee in accordance with
applicable provisions of the Internal Revenue Code and related regulations promulgated under the
Code.

(d) “Gross Misconduct” means engaging in any act or acts involving conduct which violates Company
policy or is illegal and which results, directly or indirectly, in personal gain to the individual
involved at the expense of the Company or a Subsidiary.

(e) “Nonqualified Stock Option” means an Option that is not an Incentive Stock Option, as defined
in Section 422 of the Internal Revenue Code.

SECTION 6. PLAN CONTROLLING.

The Award is subject all of the terms conditions of the Plan. In the event of a conflict between
the Plan and this Agreement, the provisions of the Plan shall control.

SECTION 7. GOVERNING LAW. 

This Agreement and its validity, interpretation, performance and enforcement shall be

Exhibit 10.1

 

 

governed by the laws of the State of Ohio other than the conflict of laws provisions of such laws.

SECTION 8. SEVERABILITY.

Whenever possible, each provision in this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement shall be held to
be prohibited by or invalid under applicable law, then (a) such provision shall be deemed amended
to accomplish the objectives of the provision as originally written to the fullest extent permitted
by law and (b) all other provisions of this Agreement shall remain in full force and effect.

Exhibit 10.1

 

 

SECTION 9. STRICT CONSTRUCTION.

No rule of strict construction shall be implied against the Company, the Committee or any other
person in the interpretation of any of the terms of the Plan, this Agreement or any rule or
procedure established by the Committee.

IN WITNESS WHEREOF, the Company and Employee have duly executed this Agreement as of the Award
Date.

	 	 	 	 	 
	ROBBINS & MYERS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

Peter C. Wallace
	 	 
	Title:

	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 
	EMPLOYEE
	 	 
	 
	 	 	 	 
	 	 	 
	Name:
	 	 	 	 

Exhibit 10.1

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