Document:

exv4w2

 

Exhibit 4.2

SUPPLEMENTAL INDENTURE TO BE DELIVERED

BY GUARANTOR

     SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of August 24, 2004, among
Dunlop Standard Aerospace (Nederland) BV and Standard Aero BV (each a “Guarantor” and collectively
the “Guarantors”), each a direct or indirect subsidiary of Standard Aero Holdings, Inc. (or its
permitted successor), a Delaware corporation (the “Company”), the Company and Wells Fargo Bank,
National Association, as trustee under the indenture referred to below (the “Trustee”).

WITNESSETH

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of August 20, 2004 providing for the issuance of an unlimited amount of 81/4%
Senior Subordinated Notes due 2014 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guarantors will execute
and deliver to the Trustee a supplemental indenture pursuant to which the Guarantors will
unconditionally guarantee all of the Company’s Obligations (as defined in the Indenture) under the
Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary Guarantee”);
and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantors and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

  1. Capitalized Terms. Capitalized terms used herein without definition will have the
meanings assigned to them in the Indenture.

  2. Agreement To Guarantee. Each Guarantor hereby agrees as follows:

	 	(a)  	Such Guarantor, jointly and severally with all other current
and future guarantors of the Notes (collectively, the “Guarantors” and each, a
“Guarantor”), unconditionally guarantees to each Holder of a Note authenticated
and delivered by the Trustee and to the Trustee and its successors and assigns,
regardless of the validity and enforceability of the Indenture, the Notes or
the Obligations of the Company under the Indenture or the Notes, that:

	 	(i)  	the principal of, premium, interest and
Additional Interest, if any, on the Notes will be promptly paid in full
when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of, premium, interest
and Additional Interest,

 

 

2

	 	   	if any, on the Notes, to the extent lawful, and all other Obligations
of the Company to the Holders or the Trustee thereunder or under the
Indenture will be promptly paid in full, all in accordance with the
terms thereof, including but not limited to Section 11 thereof; and
	 
	 	(ii)  	in case of any extension of time for payment or
renewal of any Notes or any of such other Obligations, that the same
will be promptly paid in full when due in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration
or otherwise.

	 	(b)  	(i) Notwithstanding the foregoing, in the event that this
Subsidiary Guarantee would constitute or result in a violation of any
applicable fraudulent conveyance or similar law of any relevant jurisdiction,
the liability of such Guarantor under this Supplemental Indenture and its
Subsidiary Guarantee shall be reduced to the maximum amount permissible under
such fraudulent conveyance or similar law;
	 
	 	   	(ii)(A) Each Netherlands Subsidiary Guarantor, and each of its Subsidiaries,
will not guarantee any obligation or incur any liability or provide security
to the extent that it has been entered into with a view to the subscription
or acquisition by third parties of shares in its share capital or would
otherwise constitute unlawful financial assistance under Section 2:98c or
Section 2:207c of the Netherlands Civil Code or similar provisions under
other relevant law. The Subsidiary Guarantee for each Netherlands
Subsidiary Guarantor shall be no greater than the amount of the Obligations
set forth in clauses 1(a)(i) and (ii) above, as reduced by [$___],
the purchase price of the shares of the Netherlands Subsidiary Guarantors]
	 

	 	(B)  	Each Netherlands Subsidiary Guarantor, and each of its Subsidiaries,
will not guarantee any obligation or provide security to the extent that in
doing so, it would transgress its objects as set out and described in
Section 2:7 of the Netherlands Civil Code.
	 
	 	(C)  	If, notwithstanding Section 1(a), in relation to a Netherlands
Subsidiary Guarantor, any provision of this Supplemental Indenture or the
Subsidiary Guarantee is null and void, voidable or unenforceable (either in
whole or in part), the remainder of this Supplemental Indenture or the
Subsidiary Guarantee shall continue to be effective to the extent that,
given this clause’s substance and purpose, such remainder is not
inextricably related to the null and void or unenforceable provision.
	 

	 	(c)  	Failing payment when due of any amount so guaranteed or any
performance so guaranteed for whatever reason, the Guarantors will be jointly
and severally obligated to pay the same immediately. Each

 

 

3

	 	   	Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

3. Execution And Delivery Of Subsidiary Guarantees.

	 	(a)  	To evidence its Subsidiary Guarantee set forth in this
Supplemental Indenture, such Guarantor hereby agrees that a notation of such
Subsidiary Guarantee substantially in the form of Exhibit C to the
Indenture will be endorsed by an officer of such Guarantor on each Note
authenticated and delivered by the Trustee after the date hereof.
	 
	 	(b)  	Notwithstanding the foregoing, such Guarantor hereby agrees
that its Subsidiary Guarantee set forth herein will remain in full force and
effect notwithstanding any failure to endorse on each Note a notation of such
Subsidiary Guarantee.
	 
	 	(c)  	If an Officer whose signature is on this Supplemental Indenture
or on the Subsidiary Guarantee no longer holds that office at the time the
Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the
Subsidiary Guarantee will be valid nevertheless.
	 
	 	(d)  	The delivery of any Note by the Trustee, after the
authentication thereof under the Indenture, will constitute due delivery of the
Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each
Guarantor.
	 
	 	(e)  	Each Guarantor hereby agrees that its Obligations hereunder
will be unconditional, regardless of the validity, regularity or enforceability
of the Notes or the Indenture, the absence of any action to enforce the same,
any waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Company, any action
to enforce the same or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of a guarantor.
	 
	 	(f)  	Each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that its Subsidiary
Guarantee made pursuant to this Supplemental Indenture will not be discharged
except by complete performance of the Obligations contained in the Notes and
the Indenture.
	 
	 	(g)  	If any Holder or the Trustee is required by any court or
otherwise to return to the Company or any Guarantor, or any custodian, Trustee,
liquidator or other similar official acting in relation to either the Company
or such Guarantor, any amount paid by either to the Trustee or such Holder, the

 

 

4

	 	   	Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the
extent theretofore discharged, will be reinstated in full force and effect.

	 	(h)  	Each Guarantor agrees that it shall not be entitled to any
right of subrogation in relation to the Holders in respect of any Obligations
guaranteed hereby until payment in full of all Obligations guaranteed hereby.
Each Guarantor further agrees that, as between such Guarantor, on the one hand,
and the Holders and the Trustee, on the other hand:

	 	(i)  	the maturity of the Obligations guaranteed
hereby may be accelerated as provided in Article 6 of the Indenture for
the purposes of the Subsidiary Guarantee made pursuant to this
Supplemental Indenture, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Obligations
guaranteed hereby; and
	 
	 	(ii)  	in the event of any declaration of acceleration
of such Obligations as provided in Article 6 of the Indenture, such
Obligations (whether or not due and payable) will forthwith become due
and payable by such Guarantor for the purpose of the Subsidiary
Guarantee made pursuant to this Supplemental Indenture.

	 	(i)  	Each Guarantor will have the right to seek contribution from
any other non-paying Guarantor so long as the exercise of such right does not
impair the rights of the Holders or the Trustee under the Subsidiary Guarantee
made pursuant to this Supplemental Indenture.

4. Guarantor May Consolidate, etc. on Certain Terms.

	 	(a)  	Except as set forth in Articles 4 and 5 of the Indenture,
nothing contained in the Indenture, this Supplemental Indenture or in the Notes
will prevent any consolidation or merger of any Guarantor with or into the
Company or any other Guarantor or will prevent any transfer, sale or conveyance
of the property of any Guarantor as an entirety or substantially as an entirety
to the Company or any other Guarantor.
	 
	 	(b)  	Except as set forth in Section 10.04 of the Indenture, no
Guarantor may sell or otherwise dispose of all or substantially all of its
assets to, or consolidate with or merge with or into (whether or not such
Guarantor is the surviving Person), another Person, other than the Company or
another Guarantor, unless: (i) immediately after giving effect to such
transaction, no Default or Event of Default exists and (ii) either (A) subject
to Section 10.04 of the Indenture, the Person acquiring the property in any
such sale or disposition or the Person formed by or surviving any such
consolidation or merger unconditionally assumes all the obligations of that
Guarantor, pursuant to a supplemental indenture in form and substance
reasonably satisfactory to the Trustee, under the Indenture and the Subsidiary

 

 

5

	 	   	Guarantee on the terms set forth in the Indenture or such Subsidiary
Guarantee, as the case may be, or (B) the Net Proceeds of such sale or other
disposition are applied in accordance with the applicable provisions of the
Indenture, including without limitation, Section 4.10 thereof.
	 
	 	(c)  	In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and
the due and punctual performance of all of the covenants and conditions of the
Indenture and this Supplemental Indenture to be performed by such Guarantor,
such successor Person will succeed to and be substituted for such Guarantor
with the same effect as if it had been named herein as the Guarantor. Such
successor Person thereupon may cause to be signed any or all of the Subsidiary
Guarantees to be endorsed upon the Notes issuable under the Indenture which
theretofore have not been signed by the Company and delivered to the Trustee.
All the Subsidiary Guarantees so issued will in all respects have the same
legal rank and benefit under the Indenture and this Supplemental Indenture as
the Subsidiary Guarantees theretofore and thereafter issued in accordance with
the terms of the Indenture and this Supplemental Indenture as though all of
such Subsidiary Guarantees had been issued at the date of the execution hereof.

5. Releases.

	 	(a)  	In the event of any sale or other disposition of all or
substantially all of the assets of any Guarantor, by way of merger,
consolidation or otherwise, or a sale or other disposition of all of the
Capital Stock of any Guarantor, in each case to a Person that is not (either
before or after giving effect to such transactions) a Subsidiary of the
Company, then such Guarantor (in the event of a sale or other disposition, by
way of merger, consolidation or otherwise, of all of the Capital Stock of such
Guarantor) or the Person acquiring the property (in the event of a sale or
other disposition of all or substantially all of the assets of such Guarantor)
will be released and relieved of any obligations under its Subsidiary
Guarantee; provided that the Net Proceeds of such sale or other disposition are
applied in accordance with the applicable provisions of the Indenture,
including without limitation Section 4.10 thereof. Upon delivery by the
Company to the Trustee of an Officer’s Certificate and an Opinion of Counsel to
the effect that such sale or other disposition was made by the Company in
accordance with the provisions of the Indenture, including without limitation
Section 4.10 thereof, the Trustee will execute any documents reasonably
required in order to evidence the release of any Guarantor from its obligations
under its Subsidiary Guarantee. Any Guarantor not released from its
obligations under its Subsidiary Guarantee will remain liable for the full
amount of principal of and interest on the Notes and for

 

 

6

	 	   	the other obligations of any Guarantor under the Indenture as provided in
Article 10 thereof.
	 
	 	(b)  	Upon the designation of a Guarantor as an Unrestricted
Subsidiary in accordance with the terms of the Indenture, such Guarantor will
be released and relieved of its Obligations under its Subsidiary Guarantee and
this Supplemental Indenture. Upon delivery by the Company to the Trustee of an
Officer’s Certificate and an Opinion of Counsel to the effect that such
designation of such Guarantor as an Unrestricted Subsidiary was made by the
Company in accordance with the provisions of the Indenture, including without
limitation Section 4.07 of the Indenture, the Trustee will execute any
documents reasonably required in order to evidence the release of such
Guarantor from its Obligations under its Subsidiary Guarantee. Any Guarantor
not released from its Obligations under its Subsidiary Guarantee will remain
liable for the full amount of principal of and interest on the Notes and for
the other Obligations of any Guarantor under the Indenture as provided in
Article 10 thereof.
	 
	 	(c)  	Each Guarantor will be released and relieved of its obligations
under this Supplemental Indenture in accordance with, and subject to, Article 8
of the Indenture.

     6. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of any Guarantor, as such, will have any liability for
any Obligations of the Company or any Guarantor under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of,
such Obligations or their creation. Each Holder of the Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes. Such waiver may not be effective to waive liabilities under the federal securities laws
and it is the view of the SEC that such a waiver is against public policy.

     7. NEW YORK LAW TO GOVERN. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     8. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy will be an original, but all of them together represent the same
agreement.

     9. Effect Of Headings. The Section headings herein are for convenience only and will
not affect the construction hereof.

     10. The Trustee. The Trustee will not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guarantors and the
Company.

 

 

7

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

	 	 	 
	Dated: August 24, 2004
	 	 
	 
	 	 
	

	 	STANDARD AERO HOLDINGS, INC.
	 
	 	 
	

	 	By:/s/ Bradley Bertouille
	

	 	Name: Bradley Bertouille
	

	 	Title: Senior Vice President of Finance,
	

	 	Treasurer and Secretary
	Guarantors:
	 	 
	 
	 	 
	Dated: August 24, 2004
	 	 
	 
	 	 
	

	 	DUNLOP STANDARD AEROSPACE (NEDERLAND) BV
	 
	 	 
	

	 	By:/s/ David Shaw
	

	 	Name: David Shaw
	

	 	Title:
	 
	 	 
	

	 	STANDARD AERO BV
	 
	 	 
	

	 	By:/s/ David Shaw
	

	 	Name: David Shaw
	

	 	Title:
	WELLS FARGO BANK,
	 	 
	   NATIONAL ASSOCIATION, as Trustee
	 	 
	 
	 	 
	By:/s/ Joseph P. O’Donnell
	 	 
	Name: Joseph P. O’Donnell
	 	 
	Title: Assistant Vice Presidentexv4w3

 

Exhibit 4.3

SUPPLEMENTAL INDENTURE TO BE DELIVERED

BY GUARANTOR

     SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of August 24, 2004, among
Dunlop Standard Aerospace (US) Inc., Dunlop Standard Aerospace (US) Legal Inc., Standard Aero,
Inc., Dunlop Aerospace Parts, Inc., Standard Aero (San Antonio) Inc., Standard Aero (Alliance)
Inc., Standard Aero Canada, Inc., 3091781 Nova Scotia Company, 3091782 Nova Scotia Company, 3091783
Nova Scotia Company, Standard Aero Limited, Not FM Canada Inc. (each a “Guarantor” and collectively
the “Guarantors”), each a direct or indirect subsidiary of Standard Aero Holdings, Inc. (or its
permitted successor), a Delaware corporation (the “Company”), the Company and Wells Fargo Bank,
National Association, as trustee under the indenture referred to below (the “Trustee”).

WITNESSETH

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of August 20, 2004 providing for the issuance of an unlimited amount of 81/4%
Senior Subordinated Notes due 2014 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guarantors will execute
and deliver to the Trustee a supplemental indenture pursuant to which the Guarantors will
unconditionally guarantee all of the Company’s Obligations (as defined in the Indenture) under the
Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary Guarantee”);
and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantors and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

     1. Capitalized Terms. Capitalized terms used herein without definition will have the
meanings assigned to them in the Indenture.

     2. Agreement To Guarantee. Each Guarantor hereby agrees as follows:

	 	(a)  	Such Guarantor, jointly and severally with all other current
and future guarantors of the Notes (collectively, the “Guarantors” and each, a
“Guarantor”), unconditionally guarantees to each Holder of a Note authenticated
and delivered by the Trustee and to the Trustee and its successors and assigns,
regardless of the validity and enforceability of the Indenture, the Notes or
the Obligations of the Company under the Indenture or the Notes, that:

 

 

2

	 	(i)  	the principal of, premium, interest and
Additional Interest, if any, on the Notes will be promptly paid in full
when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of, premium, interest
and Additional Interest, if any, on the Notes, to the extent lawful,
and all other Obligations of the Company to the Holders or the Trustee
thereunder or under the Indenture will be promptly paid in full, all in
accordance with the terms thereof, including but not limited to Section
11 thereof; and
	 
	 	(ii)  	in case of any extension of time for payment or
renewal of any Notes or any of such other Obligations, that the same
will be promptly paid in full when due in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration
or otherwise.

	 	(b)  	Notwithstanding the foregoing, in the event that this
Subsidiary Guarantee would constitute or result in a violation of any
applicable fraudulent conveyance or similar law of any relevant jurisdiction,
the liability of such Guarantor under this Supplemental Indenture and its
Subsidiary Guarantee shall be reduced to the maximum amount permissible under
such fraudulent conveyance or similar law.
	 
	 	(c)  	Failing payment when due of any amount so guaranteed or any
performance so guaranteed for whatever reason, the Guarantors will be jointly
and severally obligated to pay the same immediately. Each Guarantor agrees
that this is a guarantee of payment and not a guarantee of collection.

3. Execution And Delivery Of Subsidiary Guarantees.

	 	(a)  	To evidence its Subsidiary Guarantee set forth in this
Supplemental Indenture, such Guarantor hereby agrees that a notation of such
Subsidiary Guarantee substantially in the form of Exhibit C to the
Indenture will be endorsed by an officer of such Guarantor on each Note
authenticated and delivered by the Trustee after the date hereof.
	 
	 	(b)  	Notwithstanding the foregoing, such Guarantor hereby agrees
that its Subsidiary Guarantee set forth herein will remain in full force and
effect notwithstanding any failure to endorse on each Note a notation of such
Subsidiary Guarantee.
	 
	 	(c)  	If an Officer whose signature is on this Supplemental Indenture
or on the Subsidiary Guarantee no longer holds that office at the time the
Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the
Subsidiary Guarantee will be valid nevertheless.

 

 

3

	 	(d)  	The delivery of any Note by the Trustee, after the
authentication thereof under the Indenture, will constitute due delivery of the
Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each
Guarantor.
	 
	 	(e)  	Each Guarantor hereby agrees that its Obligations hereunder
will be unconditional, regardless of the validity, regularity or enforceability
of the Notes or the Indenture, the absence of any action to enforce the same,
any waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Company, any action
to enforce the same or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of a guarantor.
	 
	 	(f)  	Each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that its Subsidiary
Guarantee made pursuant to this Supplemental Indenture will not be discharged
except by complete performance of the Obligations contained in the Notes and
the Indenture.
	 
	 	(g)  	If any Holder or the Trustee is required by any court or
otherwise to return to the Company or any Guarantor, or any custodian, Trustee,
liquidator or other similar official acting in relation to either the Company
or such Guarantor, any amount paid by either to the Trustee or such Holder, the
Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the
extent theretofore discharged, will be reinstated in full force and effect.
	 
	 	(h)  	Each Guarantor agrees that it shall not be entitled to any
right of subrogation in relation to the Holders in respect of any Obligations
guaranteed hereby until payment in full of all Obligations guaranteed hereby.
Each Guarantor further agrees that, as between such Guarantor, on the one hand,
and the Holders and the Trustee, on the other hand:

	 	(i)  	the maturity of the Obligations guaranteed
hereby may be accelerated as provided in Article 6 of the Indenture for
the purposes of the Subsidiary Guarantee made pursuant to this
Supplemental Indenture, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Obligations
guaranteed hereby; and
	 
	 	(ii)  	in the event of any declaration of acceleration
of such Obligations as provided in Article 6 of the Indenture, such
Obligations (whether or not due and payable) will forthwith become due
and payable by such Guarantor for the purpose of the Subsidiary
Guarantee made pursuant to this Supplemental Indenture.

 

 

4

	 	(i)  	Each Guarantor will have the right to seek contribution from
any other non-paying Guarantor so long as the exercise of such right does not
impair the rights of the Holders or the Trustee under the Subsidiary Guarantee
made pursuant to this Supplemental Indenture.

4. Guarantor May Consolidate, etc. on Certain Terms.

	 	(a)  	Except as set forth in Articles 4 and 5 of the Indenture,
nothing contained in the Indenture, this Supplemental Indenture or in the Notes
will prevent any consolidation or merger of any Guarantor with or into the
Company or any other Guarantor or will prevent any transfer, sale or conveyance
of the property of any Guarantor as an entirety or substantially as an entirety
to the Company or any other Guarantor.
	 
	 	(b)  	Except as set forth in Section 10.04 of the Indenture, no
Guarantor may sell or otherwise dispose of all or substantially all of its
assets to, or consolidate with or merge with or into (whether or not such
Guarantor is the surviving Person), another Person, other than the Company or
another Guarantor, unless: (i) immediately after giving effect to such
transaction, no Default or Event of Default exists and (ii) either (A) subject
to Section 10.04 of the Indenture, the Person acquiring the property in any
such sale or disposition or the Person formed by or surviving any such
consolidation or merger unconditionally assumes all the obligations of that
Guarantor, pursuant to a supplemental indenture in form and substance
reasonably satisfactory to the Trustee, under the Indenture and the Subsidiary
Guarantee on the terms set forth in the Indenture or such Subsidiary Guarantee,
as the case may be, or (B) the Net Proceeds of such sale or other disposition
are applied in accordance with the applicable provisions of the Indenture,
including without limitation, Section 4.10 thereof.
	 
	 	(c)  	In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and
the due and punctual performance of all of the covenants and conditions of the
Indenture and this Supplemental Indenture to be performed by such Guarantor,
such successor Person will succeed to and be substituted for such Guarantor
with the same effect as if it had been named herein as the Guarantor. Such
successor Person thereupon may cause to be signed any or all of the Subsidiary
Guarantees to be endorsed upon the Notes issuable under the Indenture which
theretofore have not been signed by the Company and delivered to the Trustee.
All the Subsidiary Guarantees so issued will in all respects have the same
legal rank and benefit under the Indenture and this Supplemental Indenture as
the Subsidiary Guarantees theretofore and thereafter issued in accordance with
the terms of the Indenture and this Supplemental Indenture as though

 

 

5

	 	   	all of such Subsidiary Guarantees had been issued at the date of the
execution hereof.

5. Releases.

	 	(a)  	In the event of any sale or other disposition of all or
substantially all of the assets of any Guarantor, by way of merger,
consolidation or otherwise, or a sale or other disposition of all of the
Capital Stock of any Guarantor, in each case to a Person that is not (either
before or after giving effect to such transactions) a Subsidiary of the
Company, then such Guarantor (in the event of a sale or other disposition, by
way of merger, consolidation or otherwise, of all of the Capital Stock of such
Guarantor) or the Person acquiring the property (in the event of a sale or
other disposition of all or substantially all of the assets of such Guarantor)
will be released and relieved of any obligations under its Subsidiary
Guarantee; provided that the Net Proceeds of such sale or other disposition are
applied in accordance with the applicable provisions of the Indenture,
including without limitation Section 4.10 thereof. Upon delivery by the
Company to the Trustee of an Officer’s Certificate and an Opinion of Counsel to
the effect that such sale or other disposition was made by the Company in
accordance with the provisions of the Indenture, including without limitation
Section 4.10 thereof, the Trustee will execute any documents reasonably
required in order to evidence the release of any Guarantor from its obligations
under its Subsidiary Guarantee. Any Guarantor not released from its
obligations under its Subsidiary Guarantee will remain liable for the full
amount of principal of and interest on the Notes and for the other obligations
of any Guarantor under the Indenture as provided in Article 10 thereof.
	 
	 	(b)  	Upon the designation of a Guarantor as an Unrestricted
Subsidiary in accordance with the terms of the Indenture, such Guarantor will
be released and relieved of its Obligations under its Subsidiary Guarantee and
this Supplemental Indenture. Upon delivery by the Company to the Trustee of an
Officer’s Certificate and an Opinion of Counsel to the effect that such
designation of such Guarantor as an Unrestricted Subsidiary was made by the
Company in accordance with the provisions of the Indenture, including without
limitation Section 4.07 of the Indenture, the Trustee will execute any
documents reasonably required in order to evidence the release of such
Guarantor from its Obligations under its Subsidiary Guarantee. Any Guarantor
not released from its Obligations under its Subsidiary Guarantee will remain
liable for the full amount of principal of and interest on the Notes and for
the other Obligations of any Guarantor under the Indenture as provided in
Article 10 thereof.
	 
	 	(c)  	Each Guarantor will be released and relieved of its obligations
under this Supplemental Indenture in accordance with, and subject to, Article 8
of the Indenture.

 

 

6

     6. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of any Guarantor, as such, will have any liability for
any Obligations of the Company or any Guarantor under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of,
such Obligations or their creation. Each Holder of the Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for issuance of
the Notes. Such waiver may not be effective to waive liabilities under the federal securities laws
and it is the view of the SEC that such a waiver is against public policy.

     7. NEW YORK LAW TO GOVERN. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     8. Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy will be an original, but all of them together represent the same
agreement.

     9. Effect Of Headings. The Section headings herein are for convenience only and will
not affect the construction hereof.

     10. The Trustee. The Trustee will not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guarantors and the
Company.

 

 

7

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

	 	 	 
	Dated: August 24, 2004
	 	 
	 
	 	 
	

	 	STANDARD AERO HOLDINGS, INC.
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	Guarantors:
	 	 
	 
	 	 
	Dated: August 24, 2004
	 	 
	 
	 	 
	

	 	DUNLOP STANDARD AEROSPACE (US) INC.
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	DUNLOP STANDARD AEROSPACE (US) LEGAL INC.
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	STANDARD AERO, INC.
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	DUNLOP AEROSPACE PARTS, INC.
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	STANDARD AERO (SAN ANTONIO) INC.

 

 

8

	 	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	STANDARD AERO (ALLIANCE) INC.
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	STANDARD AERO CANADA, INC.
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	3091781 NOVA SCOTIA COMPANY
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	3091782 NOVA SCOTIA COMPANY
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	3091783 NOVA SCOTIA COMPANY
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	STANDARD AERO LIMITED
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President
	 
	 	 
	

	 	NOT FM CANADA INC.
	 
	 	 
	

	 	By: /s/ Edward Richmond
	

	 	Name: Edward Richmond
	

	 	Title: Vice President

 

 

9

	 	 	 
	WELLS FARGO BANK,
	 	 
	   NATIONAL ASSOCIATION, as Trustee
	 	 
	 
	 	 
	By: /s/ Joseph P. O’Donnell
	 	 
	Name: Joseph P. O’Donnell
	 	 
	Title: Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]