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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 5)
----------
AVIALL, INC.
(Name of Issuer)
Common Stock, $.01 par value per share 05366B102
(Title of class of securities) (CUSIP number)
David E. Zeltner, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153 (212) 310-8000
(Name, address and telephone number of person authorized
to receive notices and communications)
March 11, 1999
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 22 pages)
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<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 2 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON NOLAN ACQUISITION PARTNERS
S.S. OR I.R.S. IDENTIFICATION NO. 75-2787642
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- ----------------------------------------------------------------- -------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- ------------------------------------------------------------------------------------------------- -----
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- ------------------------------------------------------------------------ ------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Texas
- ---------------------- ------------------------------------------------------------------------ ------------------------------
7 SOLE VOTING POWER: 1,452,900
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,452,900
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 3 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON NOLAN ACQUISITION GROUP, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 75-2786370
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 4 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON KINCAID CAPITAL GROUP,
a Texas corporation
S.S. OR I.R.S. IDENTIFICATION NO. 75-2779494
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Texas
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 5 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON THOMAS R. KINCAID
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 6 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON DAN KOMNENOVICH
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 7 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON RICHARD JONES
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 8 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON CONESE CAPITAL, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. 58-2423275
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 9 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON CONESE FAMILY PARTNERSHIP
(NEVADA), L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 88-0381099
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Nevada
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 10 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON CONESE GENERAL PARTNER
(NEVADA), INC.
S.S. OR I.R.S. IDENTIFICATION NO. 88-0381098
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Nevada
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 11 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON EUGENE P. CONESE
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 12 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------- ------------------------------------------------------
1 NAME OF REPORTING PERSON AEROGROUP I, LTD. CO.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- ------------------------------------------------------------------------------- -------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
- ---------------------- ------------------------------------------------------------------------------- -------------------------
3 SEC USE ONLY
- ---------------------- ------------------------------------------------- -------------------------------------------------------
4 SOURCE OF FUNDS: AF
- ---------------------- ------------------------------------------------------------------------------------------- -------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- ----------------------------------------------------------- ---------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Georgia
- ---------------------- -- ------------------- ------------------------------------------- -------------------------------------
7 SOLE VOTING POWER: 136,429
NUMBER OF
SHARES ------------------- ------------------------------------------- -------------------------------------
8 SHARED VOTING POWER: 0
BENEFICIALLY
OWNED BY ------------------- ------------------------------------------- -------------------------------------
9 SOLE DISPOSITIVE POWER: 136,429
EACH
REPORTING ------------------- ------------------------------------------- -------------------------------------
10 SHARED DISPOSITIVE POWER: 0
PERSON WITH
------------------- ------------------------------------------- -------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 136,429
- ---------------------- ------------------------------------------------------------------------------------ --------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- ------------------------------------------------------------------------------------ --------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.8%
- ---------------------- -------------------------------------------------- ------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ---------------------- -------------------------------------------------- ------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 13 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------- ------------------------------------------------------
1 NAME OF REPORTING PERSON AEROEQUITY, INC.
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- ------------------------------------------------------------------------------ --------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
- ---------------------- ------------------------------------------------------------------------------ --------------------------
3 SEC USE ONLY
- ---------------------- ------------------------------------------------- -------------------------------------------------------
4 SOURCE OF FUNDS: AF
- ---------------------- ------------------------------------------------------------------------------------------ --------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- ------------------------------------------------------------ --------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Florida
- ---------------------- ------------------------------------------------------------ --------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------ --------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 136,429
OWNED BY
------------------- ------------------------------------------ --------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------ --------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 136,429
------------------- ------------------------------------------ --------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
136,429
- ---------------------- ----------------------------------------------------------------------------------- ---------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- ----------------------------------------------------------------------------------- ---------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.8%
- ---------------------- -------------------------------------------------- ------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- ---------------------- -------------------------------------------------- ------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 14 of 22 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- ------------------------------------------------------- -----------------------------------------------
1 NAME OF REPORTING PERSON BRIAN H. ROWE
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- ------------------------------------------------------------------------------------ ------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [ ]
(b) [X]
- ---------------------- ------------------------------------------------------------------------------------ ------------------
3 SEC USE ONLY
- ---------------------- ----------------------------------------------------------------- -------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- ------------------------------------------------------------------------------------------------- -----
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- ---------------------------------------------------------------------- --------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- ---------------------------------------------------------------------- --------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES ------------------- ------------------------------------------------ ------------------------------
8 SHARED VOTING POWER: 136,429
BENEFICIALLY
OWNED BY ------------------- ------------------------------------------------ ------------------------------
9 SOLE DISPOSITIVE POWER: 0
EACH
REPORTING ------------------- ------------------------------------------------ ------------------------------
10 SHARED DISPOSITIVE POWER: 136,429
PERSON WITH ------------------- ------------------------------------------------ ------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
136,429
- ---------------------- ------------------------------------------------------------------------------------------ ------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- ------------------------------------------------------------------------------------------ ------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0.8%
- ---------------------- ------------------------------------------------------- -----------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- ------------------------------------------------------- -----------------------------------------------
</TABLE>
<PAGE>
This Amendment No. 5 ("Amendment No. 5") amends the Statement on
Schedule 13D (the "Schedule 13D") filed on November 9, 1998, as amended by
Amendment No. 1 filed on December 5, 1998, Amendment No. 2 filed on January 22,
1999, Amendment No. 3 filed on February 2, 1999 and Amendment No. 4 filed on
March 2, 1999 by and on behalf of the following persons (collectively, the
"Original Reporting Persons"): Nolan Acquisition Partners, a Texas general
partnership ("NAP"), Nolan Acquisition Group, L.P., a Delaware limited
partnership ("NAG"), Kincaid Capital Group, a Texas Corporation ("Kincaid
Capital"), Thomas R. Kincaid ("Kincaid"), Richard Jones ("Jones"), Dan
Komnenovich ("Komnenovich"), Conese Capital, L.L.C., a Delaware limited
liability company ("CCL"), Conese Family Partnership (Nevada), L.P., a Nevada
limited partnership ("CFP"), Conese General Partner (Nevada), Inc., a Nevada
corporation ("CGN") and Eugene P. Conese ("Conese"). This Amendment No. 5 also
adds AeroGroup I, Ltd. Co., a Georgia limited liability company ("AeroGroup"),
AeroEquity, Inc. a Florida corporation ("AeroEquity") and Brian H. Rowe ("Rowe",
and, collectively with AeroGroup and AeroEquity, the "Rowe Group") as reporting
persons (the Rowe Group, together with the Original Reporting Persons, being
referred to collectively as the "Reporting Persons"). Except as otherwise
indicated, capitalized terms used herein and not defined herein have the
meanings ascribed thereto in the Schedule 13D. As used herein, the "Company" or
the "Issuer" shall mean Aviall, Inc.
ITEM 2. IDENTITY AND BACKGROUND
This Amendment No. 5 represents the joint filing of the Reporting
Persons. A letter agreement dated March 11, 1999 between NAP and AeroEquity (the
"NAP/AeroEquity Agreement"), which sets forth their agreement and understanding
on certain matters, is described in Item 6 hereof, filed herewith as Exhibit 9
hereto and incorporated herein by reference.
K. Rowe's business address is c/o AeroGroup, 7414 Hodgson Memorial
Drive, Suite B, Savannah, Georgia 31406. Rowe has served as
President and a Director of AeroGroup since March 1999, Chairman
and President of AeroEquity since April 1998 and Chairman Emeritus
of GE Aircraft Engines, a division of General Electric Company,
since February 1995. Rowe was Chairman of the General Electric
Aircraft Engines division of General Electric Company from
September 1993 to February 1995. Rowe is a United States citizen.
L. AeroEquity is Florida corporation. It is a private management and
investment firm that invests primarily in the aviation industry.
The principal place of business of AeroEquity is 7414 Hodgson
Memorial Drive, Suite B, Savannah, Georgia 31406. The controlling
shareholder, executive officers and directors of AeroEquity
consist of Rowe, who is the controlling shareholder and serves as
Chairman, President and as a director, and David H. Rowe, who
serves as Managing Director and as a director. The principal
occupation, business address and citizenship of Rowe is set forth
in clause K above. The principal occupation of David H. Rowe is
serving in such capacities with AeroEquity, his business address
is c/o AeroEquity at the address set forth above and he is a
United States citizen.
15
<PAGE>
M. AeroGroup is a Georgia limited liability company formed for the
purpose investing in securities. The principal place of business
of AeroGroup is 7414 Hodgson Memorial Drive, Suite B, Savannah,
Georgia 31406. The executive officers and directors of AeroGroup
are Rowe, who serves as President and as a director, and David H.
Rowe who serves as Vice President and a director. The sole member
of AeroGroup is AeroEquity. Information concerning the controlling
shareholder, executive officers and directors of AeroGroup is set
forth under clause L above.
None of the persons listed in clauses K, L or M above in the last
five years (i) has been convicted in a criminal proceeding or (ii) was party to
a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
Except as indicated above, the information set forth in Item 2 of
the Schedule 13D remains unchanged.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The amount of funds used to make the purchases of shares of
Common Stock of the Issuer owned by AeroGroup was $1,585,856. These shares were
purchased by AeroEquity (122,929 shares for a purchase price of $1,382,951) and
by Rowe (13,500 shares for a purchase price of $202,905). The shares purchased
by AeroEquity were contributed by AeroEquity to AeroGroup and the shares
purchased by Rowe were contributed by Rowe to AeroEquity and, in turn,
contributed by AeroEquity to AeroGroup. AeroEquity used its working capital to
purchase such shares and Rowe used his personal funds to purchase such shares.
Except as indicated above, the information set forth in Item 3 of
the Schedule 13D remains unchanged.
ITEM 4. PURPOSE OF TRANSACTION.
By letter dated March 12, 1999 and delivered to the Company on
such date (the "March 12 Letter"), NAP and AeroGroup provided notice to the
Secretary of the Company, pursuant to Article II, Section 2.7 of the by-laws of
the Company (the "By-laws"), of their intention to nominate Brian H. Rowe and
Eugene P. Conese, Jr. (collectively, the "Nominees") for election to the Board
of Directors of the Company at the 1999 Annual Meeting of Stockholders of the
Company (the "1999 Annual Meeting") and provided certain additional information
required by the By-laws. A copy of the March 12 Letter is filed as Exhibit 10
hereto and incorporated by reference herein.
As previously reported in the Schedule 13D, pursuant to the March
1 Letter, NAP has made the Nolan Group Proposal pursuant to which, subject to
the terms and conditions thereof, the Company would be merged with a corporation
to be formed by the Original Reporting Persons and all of the Company's
16
<PAGE>
stockholders (other than the Original Reporting Persons) would receive $15.50
per share in cash in exchange for their Common Stock.
In view of the fact that the Company's Board of Directors has not
announced or otherwise informed the Reporting Persons that it has determined to
accept the Nolan Group Proposal or to sell the Company to any third party
offering greater value to stockholders, NAP and AeroGroup determined to nominate
the Nominees for election as directors at the 1999 Annual Meeting, and the
Reporting Persons presently intend to solicit proxies in favor of the Nominees.
The Nominees currently intend, if elected as directors, to
attempt to cause the Company's Board of Directors to seek a sale of the Company
at the highest possible price (whether pursuant to the Nolan Group Proposal or
pursuant to any other proposal that would provide greater value to stockholders,
whether made by any of the Reporting Persons or by any third party).
In addition, the Reporting Persons reserve the right to initiate
a tender offer for the Common Stock at a price that may differ from the price
per share offered in the Nolan Group Proposal. The reporting Persons may also
acquire additional shares of Common Stock (subject to availability of shares at
prices deemed favorable) in the open market or in privately negotiated
transactions, and may contact the Issuer, its representatives, other persons
interested in the Issuer or persons interested in financing the Nolan Group
Proposal.
Alternatively, while it is not the Reporting Persons' present
intention to do so, the Reporting Persons reserve the right to dispose of some
or all of their shares of Common Stock in the open market or in privately
negotiated transactions to third parties, or otherwise, depending upon the
course of action that the Issuer pursues, market conditions and other factors.
Although the foregoing represents the range of activities
presently contemplated by the Reporting Persons with respect to the Common
Stock, it should be noted that the possible activities of the Reporting Persons
are subject to change at any time.
Except as set forth above, as of the date of this statement none
of the Reporting Persons has any plans or proposals which relate to or would
result in any of the actions set forth in parts (a) through (j) of Item 4.
ITEM 5. INTEREST IN SECURITIES OF ISSUER.
(a) As of the date of this Statement, the Reporting Persons beneficially owned
an aggregate of 1,589,329 shares of Common Stock, constituting approximately
8.8% of the issued and outstanding shares of Common Stock of the Issuer (the
percentage of shares owned being based upon 18,171,483 shares outstanding on
November 5, 1998, as set forth in the Company's quarterly report on Form 10-Q
for the fiscal quarter ended September 30, 1998). NAP may be deemed to have
direct beneficial ownership of 1,452,900 shares of Common Stock. As more fully
described in item (b) below, each of the Original Reporting Persons may be
17
<PAGE>
deemed to be a beneficial owner of such shares of Common Stock beneficially
owned directly by NAP. AeroGroup may be deemed to have direct beneficial
ownership of 136,429 shares of Common Stock. As more fully described in item (b)
below, each of AeroEquity and Rowe may be deemed to be a beneficial owner of
such shares of Common Stock beneficially owned directly by AeroGroup. The
Original Reporting Persons disclaim beneficial ownership of the shares of Common
Stock that may be deemed to be beneficially owned by the Rowe Group, and the
Rowe Group disclaims beneficial ownership of the shares of Common Stock that may
be deemed to be beneficially owned by the Original Reporting Persons. The
Original Reporting Persons and the Rowe Group may be deemed a "group" for
purposes of Schedule 13D as a result of the NAP/Rowe Agreement.
(b) NAG, as the Managing General Partner of NAP, may be deemed to own
beneficially (as that term is defined in Rule 13d-3 under the Exchange Act
("Rule 13d-3")), shares of Common Stock of which NAP may be deemed to possess
direct beneficial ownership. Kincaid Capital, as General Partner of NAG, may be
deemed to own beneficially shares of Common Stock which NAG may be deemed to
beneficially own. Each of Kincaid, Jones and Komnenovich, as officers, directors
and stockholders, of Kincaid Capital, may be deemed to beneficially own shares
of Common Stock which Kincaid Capital may be deemed to beneficially own. Each of
Messrs. Kincaid, Jones and Komnenovich disclaims beneficial ownership of such
shares of Common Stock for all other purposes.
CCL, as General Partner of NAP, may be deemed to own beneficially
(as that term is defined in Rule 13d-3) shares of Common Stock which NAP may be
deemed to possess direct beneficial ownership. CFP, the sole member of CCL, may
be deemed to own beneficially shares of Common Stock which CCL may be deemed to
beneficially own. CGN, as the General Partner of CFP, may be deemed to own
beneficially shares of Common Stock which CFP may be deemed to beneficially own.
Conese, as the sole stockholder of CGN, may be deemed to beneficially own shares
of Common Stock which CGN may be deemed to beneficially own. Mr. Conese
disclaims beneficial ownership of such shares of Common Stock for all other
purposes.
AeroEquity, as the sole member of AeroGroup, may be deemed to
beneficially own (as that term is defined in Rule 13d-3) shares of Common Stock
of which AeroGroup may be deemed to possess direct beneficial ownership. Rowe,
as controlling shareholder, a director and President of AeroEquity, may be
deemed to beneficially own shares of Common Stock beneficially owned by
AeroEquity.
(c) Information concerning transactions in shares of Common Stock not previously
reported in the Schedule 13D by the Reporting Persons during the past sixty
days or since the filing of Amendment No. 4, whichever is less, is set forth on
Exhibit 11 attached hereto, which is incorporated herein by reference.
(d) No other person is known to have the right to receive or the power to direct
the receipt of dividends from, or the proceeds from the sale of, the shares of
Common Stock.
(e) Not applicable.
18
<PAGE>
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
On March 11, 1999, NAP and AeroEquity entered into the
NAP/AeroEquity Agreement, pursuant to which each party agreed, among other
things, to: (i) consult with the other prior to, and to notify one another
promptly after, either purchasing or voting shares of Common Stock; (ii) make
filings on Schedule l3D, either jointly with the other or separately, as may be
required by law; (iii) share and reimburse certain expenses relating to their
investment in Common Stock and efforts to maximize the value of such investment
and (iv) certain rights between the parties in the event of an acquisition by
either party or their respective affiliates, of the Issuer, its operations or
all or substantially all of the Common Stock not now owned by the Reporting
Persons. A copy of the NAP/AeroEquity Agreement is filed as Exhibit 9 hereto and
incorporated herein by reference.
Except as described above or as previously disclosed in the
Schedule 13D, the Reporting Persons have no contracts, arrangements,
understandings or relationships with respect to the securities of the Issuer.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 9: NAP/AeroEquity Agreement, dated March 11, 1999, between NAP and
AeroEquity.
Exhibit 10: Letter, dated March 12, 1999, from NAP and AeroEquity to the
Company.
Exhibit 11: Information concerning transactions in shares of Common Stock not
previously reported in the Schedule 13D by the Reporting Persons
during the past sixty days or since the filing of Amendment No. 4
to the Schedule 13D, whichever is less.
Exhibit 12: Joint Filing Agreement, dated March 12, 1999, by and among the
Reporting Persons.
19
<PAGE>
SIGNATURE
The undersigned, after reasonable inquiry and to the best of their knowledge and
belief, certify that the information set forth in this Statement is true,
complete and correct.
Dated: March 12, 1999 NOLAN ACQUISITION PARTNERS
By: Nolan Acquisition Group, L.P.,
its Managing General Partner
By: Kincaid Capital Group, a Texas corporation,
its General Partner
By: /s/ Richard Jones
---------------------------------------
Print Name: Richard Jones
Title: Senior Vice President
NOLAN ACQUISITION GROUP, L.P.
By: Kincaid Capital Group, a Texas corporation,
its General Partner
By: /s/ Richard Jones
-------------------------------------------
Print Name: Richard Jones
Title: Senior Vice President
KINCAID CAPITAL GROUP, a Texas corporation
By: /s/ Richard Jones
-----------------------------------------------
Print Name: Richard Jones
Title: Senior Vice President
/s/ Thomas R. Kincaid
-----------------------------------------------
Thomas R. Kincaid
/s/ Richard Jones
-----------------------------------------------
Richard Jones
/s/ Dan Komnenovich
-----------------------------------------------
Dan Komnenovich
20
<PAGE>
CONESE CAPITAL, L.L.C.
By: Conese Family Partnership
(Nevada), L.P., its sole member
By: Conese General Partner (Nevada), Inc., its
General Partner
By: /s/ Eugene P. Conese, Jr.
--------------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
CONESE FAMILY PARTNERSHIP (NEVADA), L.P.
By: Conese General Partner (Nevada), Inc.,
its General Partner
By: /s/ Eugene P. Conese, Jr.
-------------------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
CONESE GENERAL PARTNER (NEVADA), INC.
By: /s/ Eugene P. Conese, Jr.
-----------------------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
/s/ Eugene P. Conese
-----------------------------------------------
Eugene P. Conese
AEROEQUITY, INC.
By: /s/ Brian H. Rowe
-----------------------------------------------
Print Name: Brian H. Rowe
Title: Chairman and President
21
<PAGE>
AEROGROUP I, LTD. CO.
By: AeroEquity, Inc., its sole member
By: /s/ Brian H. Rowe
-------------------------------------------
Print Name: Brian H. Rowe
Title: Chairman and President
/s/ Brian H. Rowe
-------------------------------------------
Brian H. Rowe
22
<PAGE>
EXHIBIT INDEX
Exhibit 9: NAP/AeroEquity Agreement, dated March 11, 1999, between NAP and
AeroEquity.
Exhibit 10: Letter, dated March 12, 1999, from NAP and AeroEquity to the
Company.
Exhibit 11: Information concerning transactions in shares of Common Stock not
previously reported in the Schedule 13D by the Reporting Persons
during the past sixty days or since the filing of Amendment No. 4,
whichever is less.
Exhibit 12: Joint Filing Agreement, dated March 12, 1999, among the Reporting
Persons.
EXHIBIT 9
NOLAN ACQUISITION PARTNERS
125 E. JOHN CARPENTER FREEWAY
IRVING, TEXAS 75062
March 11, 1999
AeroEquity, Inc.
c/o Brian H. Rowe
Suite B
7414 Hodgson Memorial Drive
Savannah, GA 31411
Dear Brian:
As we discussed, each of Nolan Acquisition Partners ("Nolan") and
AeroEquity, Inc., or its assigns ("AeroEquity"), are stockholders of Aviall,
Inc. ("Aviall") and, consequently, we share an interest in maximizing the value
of Aviall's common stock. To this end, we hereby mutually agree as follows:
1. Each of us shall consult with the other prior to any purchase or
sale of any shares of Aviall's common stock ("Shares"), and will promptly notify
the other of any such purchase or sale, including the number of shares purchased
or sold, the purchase or sales price, the date of the transaction and the manner
in which the transaction was effected.
2. Each of us shall consult with the other prior to voting our
respective Shares on any matter subject to a stockholder vote and shall notify
the other regarding how any Shares have been voted.
3. AeroEquity, Inc. acknowledges that Nolan and certain other persons
have filed a Statement on Schedule 13D and amendments thereto with the
Securities and Exchange Commission ("SEC") with respect to their beneficial
ownership of Shares and that, as a result of the agreements set forth herein,
AeroEquity, Inc. may be deemed to be a member of a group with Nolan and such
other persons for purposes thereof. Consequently, AeroEquity agrees to file
separately or join with Nolan and such other persons in filing any Statement on
Schedule 13D or amendment thereto as may be required by law (each, a "Schedule
13D Filing"). Accordingly, each of us agrees to provide to the other (and, in
the case of Nolan, cause the other persons with whom it has filed a Schedule 13D
to provide to you) all information necessary to effect any Schedule 13D Filing.
We further agree to consult with each other prior to adopting any plans or
proposals which relate to or would result in any of the actions required to be
set forth in parts (a) through (j) of Item 4 of Schedule 13D.
4. Effective from and after the date hereof and unless and until this
agreement is terminated by either of us (hereinafter, the "Term"), we each agree
NY2:\320536\03\6vbs03!.DOC\65575.0003
<PAGE>
to pay our "Proportionate Share" (as defined below), calculated as of the date
of incurrence of any such Expense, of any expenses reasonably incurred by either
of us in connection with our investment in Shares and efforts made to maximize
the value thereof (collectively, "Expenses"), including, without limitation: (i)
legal expenses incurred in connection with Schedule 13D filings and any other
filings with the SEC, legal and other expenses incurred in connection with
communications with the Company, stockholders or other persons interested in
Aviall (such as printing, mailing, telephone, travel and related costs), fees or
expenses of accountants, consultants or other third parties ("Third Party
Expenses"); (ii) Indemnifiable Expenses; (iii) Contribution Expenses and (iv)
Financing Expenses (as such capitalized terms are hereinafter defined);
provided, however, that no party hereto shall be obligated to pay its
Proportionate Share of any Third Party Expense or Financing Expense unless prior
to incurrence of any such Expense the nature of, and reasons for, incurrence of
such Expense shall have been discussed among the parties hereto and approved by
the party to be so obligated ("Pre-Approved"). Each of us will promptly upon
request reimburse the other party for its "Proportionate Share" of any Expenses
paid or advanced by such other party. Unless otherwise agreed, we shall account
to each other for Expenses paid or advanced during any month prior to the
conclusion of the immediately following month.
For purposes hereof, the following terms shall have the following
meanings:
"Proportionate Share" of either party hereto, as of any date, shall
mean a fraction, the numerator of which is equal to the highest number of Shares
beneficially owned by such party on such date and the denominator of which is
the aggregate of the highest number of such Shares beneficially owned by both
parties on such date.
"Indemnifiable Expenses" shall mean all expense, liability and loss
(including attorneys' fees, judgments, fines and amounts paid or to be paid in
any settlement approved in advance by the other, such approval not to be
unreasonably withheld) actually incurred or suffered by either of us in
connection with any present or future threatened, pending or contemplated
investigation, claim, action, suit or proceeding, whether civil, criminal,
administrative or investigative (collectively, "Indemnifiable Litigation"), to
which either of us is made a party or is threatened to be made a party by reason
of any action or inaction taken or omitted in connection with the ownership of
Aviall's common stock, including any efforts to maximize the value thereof.
Notwithstanding anything to the contrary contained herein, a party hereto shall
not have any obligation to indemnify or hold harmless the other for any
Indemnifiable Expense arising out of such other party's fraud, willful
misconduct or gross negligence. For purposes of paragraphs 4 and 6 "willful
misconduct" shall include, but not be limited to, (i) an intentionally untrue
statement of a material fact, or (ii) an intentional omission to state a
material fact necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading, in each case, as such
material facts are required to be disclosed under applicable state or federal
securities laws.
"Financing Expenses" shall mean any fees or expenses payable to banks,
investment banking firms or other financing services for raising debt or equity
capital in connection with any acquisition or proposed acquisition of Aviall in
which either of us would hold an ongoing equity interest in Aviall, its
successor or assets, including, without limitation, engagement, commitment and
2
<PAGE>
financing fees and the reimbursement of any costs or expenses of any third party
financing source.
5. As a condition precedent to the right of either party hereto to be
paid a portion of any Indemnifiable or Contribution Expenses by the other party,
such party shall give the other party hereto notice in writing as soon as
practicable of any claim made against it for which indemnification will or could
be sought under this agreement. No failure to give such notice shall relieve any
party hereto from any obligation to pay Indemnifiable or Contribution Expenses
hereunder, except to the extent such failure shall materially and adversely
affect and prejudice the other party hereto.
6. The parties shall jointly cooperate in the defense of any
Indemnifiable Litigation. In the event that the payment of Indemnifiable
Expenses as provided in this agreement is unavailable to or insufficient to hold
harmless either of us otherwise entitled thereto, for any reason, each of us
agrees to contribute to the aggregate expense, liability and loss (including
legal or other expenses reasonably incurred in connection with investigating or
defending the same) to which the other may be subject in proportion to each of
our respective Proportionate Shares ("Contribution Expense"). Each of us agrees
that it would not be just and equitable if contribution were determined by any
other method of allocation. Notwithstanding anything to the contrary contained
herein, a party shall not be entitled to contribution for any Contribution
Expense from the other for any liability or expenses arising out of such party's
fraud, willful misconduct or gross negligence.
7. In the event that either party or any of their respective
affiliates, directly or indirectly, acquires Aviall, all or a portion of its
business and operations or all or substantially all of the issued and
outstanding Shares not owned by us as of the date hereof (a "Change of
Control"), each of us (vis-a-vis the other) shall have the right to participate
in such transaction at the same price and other terms and conditions of
investment as the other party.
8. Either party may terminate this agreement at any time by delivering
a written notice of termination to the other party. Notwithstanding any such
termination, (i) the provisions of paragraph 7 will survive the termination of
this agreement upon a Change of Control prior to the date of such termination,
and (ii) the provisions of paragraphs 4, 5 and 6 will survive termination of
this agreement as to any claims arising from facts that shall have occurred on
or prior to the date of such termination. Upon a termination of this agreement
by either party, the parties, except as provided under this paragraph 8, shall
have no further obligation to the other.
9. This agreement is the only agreement between the parties hereto with
respect to the subject matter hereof. Nothing in this agreement shall be
construed or be deemed to create a partnership, joint venture or similar
relationship among the parties hereto and the only obligations of the parties to
one another hereunder shall be as expressly set forth herein.
10. This agreement may be signed in counterparts, each of which shall
be deemed to be an original instrument, and shall together constitute one and
the same agreement.
3
<PAGE>
If the foregoing accurately sets forth our mutual agreement (which
shall be governed by the laws of the State of New York without regard to the
principles thereof regarding the conflict or choice of laws), please so indicate
by signing a copy of this agreement where indicated below and returning it to
the undersigned.
Very truly yours,
NOLAN ACQUISITION PARTNERS
By: Nolan Acquisition Group, L.P.,
its Managing General Partner
By: Kincaid Capital Group,
a Texas corporation,
its General Partner
By: /s/ Thomas R. Kincaid
------------------------------------
Name: Thomas R. Kincaid
Title: President
Accepted and Agreed:
AEROEQUITY, INC.
By: /s/ Brian Rowe
------------------------------
Name: Brian Rowe
Title: President
4
EXHIBIT 10
NOLAN ACQUISITION PARTNERS AEROGROUP I, LTD. CO.
125 E. JOHN CARPENTER FREEWAY 7414 Hodgson Memorial Drive
SUITE 190 L.B.9 Suite B
IRVING, TEXAS 75062 Savannah, Georgia 31406
(972) 501-0007 (912) 354-3181
(972) 501-0477 FAX (912) 354-3183 fax
March 12, 1999
BY HAND AND TELECOPY
- --------------------
Aviall, Inc.
2075 Diplomat Drive
Dallas, Texas 75234-8999
Attention: Secretary
Gentlemen:
We are writing on behalf of Nolan Acquisition Partners, a Texas
general partnership ("Nolan") and AeroGroup I, Ltd. Co., a Georgia limited
liability company ("AeroGroup"), each a stockholder of record of Aviall, Inc.
(the "Company"). Nolan and AeroGroup hereby notify the Company, in accordance
with Article II, Section 2.7, of the Company's by-laws (the "by-laws"), that
they are nominating Mr. Eugene P. Conese, Jr. and Mr. Brian H. Rowe for election
to the Company's Board of Directors (the "Board") at the Company's 1999 annual
meeting of stockholders (the "1999 Annual Meeting"). Such nominations are being
made on behalf of Nolan, AeroGroup, and the following additional beneficial
owners of the Company's common stock (collectively, the "Proponents"): Nolan
Acquisition Group, L.P., a Delaware limited partnership and the managing general
partner of Nolan ("Nolan Acquisition"), Kincaid Capital Group, a Texas
corporation and the general partner of Nolan Acquisition, Dan Komnenovich,
Richard Jones, Thomas R. Kincaid, Conese Capital, LLC, a Delaware limited
liability company and a general partner of Nolan ("Conese Capital"), Conese
Family Partnership (Nevada), L.P. a Nevada limited partnership and the sole
member of Conese Capital ("Conese F.P."), Conese General Partner (Nevada), Inc.,
a Nevada corporation and the general partner of Conese F.P., Eugene P. Conese,
Sr., AeroEquity, Inc., a Florida corporation and the sole member of AeroGroup,
Brian H. Rowe and David H. Rowe.
The information required to be set forth with respect to Mr. Conese,
Jr.'s and Mr. Rowe's nominations pursuant to Article II, Section 2.7 (A)(2)(a)
of the by-laws is set forth on Exhibit A hereto.
NYFS09...:\75\65575\0003\2119\LTR3089L.12E
<PAGE>
Aviall, Inc.
March 12, 1999
Page 2
The information required to be set forth with respect to the
Proponents pursuant to Article II, Section 2.7 (A)(2)(c) of the by-laws is set
forth on Exhibit B hereto.
We believe that we have provided all of the information required to
comply with the notice requirement of Article II, Section 2.7 of the Company's
by-laws. If any further information should be required in this regard, we
request that you notify us as promptly as possible.
Very truly yours,
NOLAN ACQUISITION PARTNERS
By: Nolan Acquisition Group, L.P.,
its Managing General Partner
By: Kincaid Capital Group, a Texas
corporation, its General Partner
By: /s/ Thomas R. Kincaid
-----------------------------------
Name: Thomas R. Kincaid
Title: President
[Remainder of Page is Blank.]
<PAGE>
Aviall, Inc.
March 12, 1999
Page 3
AEROGROUP I, LTD. CO.
By: AeroEquity, Inc., a Florida corporation,
its sole Member
By: /s/ David H. Rowe
------------------------------------
Name: David H. Rowe
Title: Managing Director
cc: Aviall, Inc.
Board of Directors
<PAGE>
EXHIBIT A
INFORMATION REGARDING THE DIRECTOR NOMINEES,
MR. EUGENE P. CONESE, JR. AND MR. BRIAN H. ROWE
EUGENE P. CONESE, JR., Age 39
c/o New Canaan Corporation
75 Arrowhead Trail
New Canaan, Connecticut 06840
Business Experience
-------------------
Vice President, October 1998 - present Conese General
Partner (Nevada), Inc. (a corporation formed to be the general partner of
Conese Family Partnership) 101 Bank of America Center Suite 850 Las Vegas,
Nevada 89109
President and Chief Executive Officer, January 1998 - present New Canaan
Corporation (a private investment and holding company) 75 Arrowhead Trail
New Canaan, Connecticut 06840
President and Chief Operating Officer;
Member of Board of Directors, November 1990 - September 1997
Greenwich Air Services, Inc.
(an aviation service company providing repair,
refurbishment, overhaul and maintenance
services for gas turbine engines)
4590 N.W. 36th Street
Post Office Box 522187
Miami, Florida 33152
Vice President Strategic Planning, March 1989 - November 1990 Greenwich
Air Services, Inc.
Corporate Directorships of Public Companies
-------------------------------------------
None.
4
<PAGE>
BRIAN H. ROWE, AGE 67
c/o AeroEquity, Inc.
7414 Hodgson Memorial Drive
Suite B
Savannah, Georgia 31406
Business Experience
-------------------
President and Director, March 1999 - present
AeroGroup I, Ltd. Co.
(a private investment company)
7414 Hodgson Memorial Drive
Suite B
Savannah, Georgia 31406
Chairman and President, April 1998 - present
AeroEquity, Inc.
(a private management and investment company)
7414 Hodgson Memorial Drive
Suite B
Savannah, Georgia 31406
Chairman Emeritus, February 1995 - present
GE Aircraft Engines, a Division of
General Electric Company
(a manufacturer of aircraft engines)
One Neumann Way
Cincinnati, Ohio 45215
Chairman, September 1993 - February 1995
GE Aircraft Engines
President and Chief Executive Officer, 1979 - 1993
GE Aircraft Engines
Senior Vice President, 1979 - 1993
General Electric Company
5
<PAGE>
Corporate Directorships of Public Companies
-------------------------------------------
Fifth Third Bancorp, Cincinnati, Ohio, Nasdaq (a commercial bank);
Convergys Corporation, Cincinnati, Ohio, New York Stock Exchange
("NYSE") (a management services company);
Stewart & Stevenson Services, Inc., Houston, Texas, NYSE
(a gas and oil services company);
Atlas Air, Inc., Golden, Colorado, NYSE (an air cargo carrier);
BE Aerospace, Inc., Wellington, Florida, Nasdaq
(an aircraft component manufacturing and services company);
Textron Inc., Providence, Rhode Island, NYSE (a multi-industry holding
company);
Dynatech Corporation, Burlington, Massachusetts, OTC Bulletin Board (a
provider of aviation and other visual communications devices,
specialized computer systems and communications text instruments)
ADDITIONAL INFORMATION
As more fully described in the Schedule 13D/A filed by Nolan, the Kincaid
Group and the Conese Group (each as defined in Exhibit B and,
collectively, the "Merger Proponents") on March 2, 1999, a copy of which
is attached hereto, such persons proposed a cash merger transaction of the
Company with a corporation to be formed for that purpose in which all the
Company's shareholders (other than the Merger Proponents) would receive
$15.50 per share in cash in exchange for their Common Stock. Such proposal
is subject to the Merger Proponents being afforded the opportunity to, and
being satisfied with the results of, a diligence review of the Company,
its properties and businesses. For a detailed description of the nominees'
direct and indirect interest in the Merger Proponents, see Exhibit B
hereto.
There are no material proceedings to which either Mr. Conese, Jr. or Mr.
Rowe is a party adverse to the Company or any of its subsidiaries or has a
material interest adverse to the Company or any of its subsidiaries.
6
<PAGE>
Mr. Conese, Jr. is a Vice President and Director of Conese G.P. Mr. Brian
H. Rowe is the President and a Director of AeroEquity, Inc. On March 11,
1999 Nolan and AeroEquity entered into an agreement, a copy of which is
attached hereto, setting forth certain arrangements in connection with
their actions with respect to the Company.
7
<PAGE>
EXHIBIT B
INFORMATION WITH RESPECT TO NOLAN ACQUISITION PARTNERS, NOLAN ACQUISITION
GROUP, L.P., KINCAID CAPITAL GROUP, DAN KOMNENOVICH, RICHARD JONES, THOMAS
R. KINCAID, CONESE CAPITAL, LLC, CONESE FAMILY PARTNERSHIP, CONESE GENERAL
PARTNERSHIP, EUGENE P. CONESE, SR., AEROGROUP I, LTD. CO., AEROEQUITY, INC.,
DAVID H. ROWE AND BRIAN H. ROWE
Information is being given herein for Nolan Acquisition Partners, a
Texas general partnership ("Nolan"), Nolan Acquisition Group, L.P., a Delaware
limited partnership and the managing general partner of Nolan ("Nolan
Acquisition"), Kincaid Capital Group, a Texas corporation and the general
partner of Nolan Acquisition ("Kincaid Capital"), Dan Komnenovich, Richard
Jones, Thomas R. Kincaid (Nolan Acquisition, Kincaid Capital and Messrs.
Komnenovich, Jones and Kincaid are collectively referred to herein as the
"Kincaid Group"), Conese Capital, LLC, a Delaware limited liability company and
a general partner of Nolan ("Conese Capital"), Conese Family Partnership
(Nevada), L.P. a Nevada limited partnership and the sole member of Conese
Capital ("Conese F.P."), Conese General Partner (Nevada), Inc., a Nevada
corporation and the general partner of Conese F.P. ("Conese G.P."), Eugene P.
Conese, Sr. (Conese Capital, Conese F.P., Conese G.P. and Mr. Conese
collectively are referred to herein as the "Conese Group"), AeroGroup I, Ltd.
Co., a Georgia limited liability company ("AeroGroup"), AeroEquity, Inc., a
Florida corporation and sole member of AeroGroup, David H. Rowe and Brian H.
Rowe, a nominee for the Board of Directors of the Company (David H. Rowe, Brian
H. Rowe, AeroEquity and AeroGroup are collectively referred to herein as the
"Rowe Group" and, the Kincaid Group, the Conese Group and the Rowe Group
collectively are referred to herein as the "Nolan Group").
BENEFICIAL OWNERSHIP OF COMMON STOCK
The information with respect to the Nolan Group sets forth as of
March 12, 1999, based on information provided by the members thereof, the number
of shares of Common Stock, par value $.01 per share ("Common Stock"), of the
Company, beneficially owned by each member of the Nolan Group (the percentage of
shares owned being based upon 18,171,483 shares outstanding on November 5, 1998,
as set forth in the Company's quarterly report on Form 10-Q for the fiscal
quarter ended September 30, 1998).
8
<PAGE>
Amount and Nature of
Name and Address of Member1 Beneficial Ownership Percent of Class
- -------------------------- -------------------- ----------------
Nolan Acquisition Partners 1,452,900(2) 8.0%
Nolan Acquisition Group, L.P. 1,452,900(2) 8.0%
Kincaid Capital Group 1,452,900(2) 8.0%
Thomas R. Kincaid 1,452,900(2) 8.0%
Dan Komnenovich 1,452,900(2) 8.0%
Richard Jones 1,452,900(2) 8.0%
Conese Capital, L.L.C. 1,452,900(2) 8.0%
Conese Family Partnership
(Nevada), L.P. 1,452,900(2) 8.0%
Conese General Partner
(Nevada), Inc. 1,452,900(2) 8.0%
Eugene P. Conese, Sr. 1,452,900(2) 8.0%
55 Alhambra Plaza
Suite 600
Coral Gables, FL 33134
AeroGroup I, Ltd. Co. 136,429(3) *
7414 Hodgson Memorial Drive
Suite B
Savannah, GA 31406
AeroEquity, Inc. 136,429(3) *
7414 Hodgson Memorial Drive
Suite B
Savannah, GE 31406
Brian H. Rowe 136,429(3) *
7414 Hodgson Memorial Drive
Suite B
Savannah, GA 31406
David H. Rowe 136,429(3) *
7414 Hodgson Memorial Drive
Suite B
Savannah, GA 31406
- -----------------
* Less than one percent (1%).
1. Except as otherwise indicated, the address of the Beneficial Owners is
c/o Nolan Acquisition Partners, 125 E. John Carpenter Freeway, Suite 190,
L.B. 9, Irving Texas 75062.
2. Nolan Acquisition, as managing general partner of Nolan, may be deemed,
pursuant to Rule 13d-3, promulgated under the Securities Exchange Act of
1934, as amended ("Rule 13d-3"), to beneficially own the shares that
Nolan owns directly. Kincaid Capital, as general partner of Nolan
Acquisition, may be deemed to beneficially own the shares beneficially
owned by Nolan Acquisition. Messrs. Kincaid, Jones, and Komnenovich, as
officers, directors and stockholders of Kincaid Capital, may be deemed to
beneficially own the shares beneficially owned by Kincaid Capital. Each
of Messrs. Kincaid, Jones and Komnenovich disclaims beneficial ownership
of such shares for all other purposes. Conese Capital, as general partner
of Nolan, may be deemed, pursuant to Rule 13d-3, to beneficially own the
shares that Nolan owns. Conese F.P., as sole member of Conese Capital,
may be deemed to beneficially own the shares owned by Conese Capital.
Conese G.P., as the general partner of Conese F.P., may be deemed to
beneficially own the shares beneficially owned by Conese F.P. Mr. Conese,
Sr., as the sole stockholder of Conese G.P., may be deemed to
beneficially own shares beneficially owned by Conese G.P. Mr. Conese, Sr.
disclaims beneficial ownership of such shares for all other purposes.
9
<PAGE>
3. AeroEquity, as the sole member of AeroGroup, may be deemed to
beneficially own the shares beneficially owned by AeroGroup; David H.
Rowe and Brian H. Rowe, as officers and directors of AeroEquity, may be
deemed to beneficially own the shares owned by AeroGroup. David H. Rowe
and Brian H. Rowe disclaim beneficial ownership of such shares for all
other purposes. On March 11, 1999, Nolan and AeroEquity entered into an
agreement, a copy of which is attached hereto, setting forth certain
arrangements in connection with their actions relating to the Company.
NOLAN
Nolan. Nolan is a general partnership formed for the purpose of making a
substantial investment in, influencing and/or acquiring control of a
publicly-held corporation, through investments and trading in securities.
THE KINCAID GROUP
Nolan Acquisition. Nolan Acquisition is a limited partnership formed for
the purpose of investing and trading securities.
Kincaid Capital. Kincaid Capital directly or indirectly invests in various
businesses.
Mr. Kincaid. Mr. Kincaid is a Director, President and stockholder of
Kincaid Capital. Mr. Kincaid has been involved in the aviation industry for 24
years. In 1979, he formed International Turbine Service, Inc., a company engaged
in the sale of aircraft engine parts, and served as its President until August
1998. In 1996, he became President and Chief Executive Officer of International
Airmotive Holding Corporation ("IAHC"), a corporation formed as a holding
company for the stock of International Turbine Service, Inc. and Dallas
Airmotive, Inc. Dallas Airmotive, Inc. is engaged in the business of overhauling
aircraft engines and International Turbine Service, Inc., is engaged in the sale
of aircraft engine parts. The assets of Dallas Airmotive, Inc. were previously
owned by Aviall, Inc. Mr. Kincaid left his position with IAHC in August 1998.
Mr. Kincaid is a United States citizen.
Mr. Jones. Mr. Jones is a Director, Senior Vice President and Secretary,
and a stockholder of Kincaid Capital. He is also the sole principal of the Law
Offices of Richard Jones. He has been engaged in the private practice of law in
Dallas, Texas since 1968. In addition to the private practice of law, Mr. Jones
has taught courses in corporate law and taxation at Southern Methodist
University School of Law. From 1986 until September 1998, Mr. Jones was a
principal of the Dallas law firm of Fishman, Jones, Walsh & Gray, P.C. Mr. Jones
is a United States Citizen.
10
<PAGE>
Mr. Komnenovich. Mr. Komnenovich is a Director, Senior Vice President and
Treasurer, and a stockholder of Kincaid Capital. Mr. Komnenovich has been
involved in the aviation industry for 15 years. He was employed by Aviall, Inc.
from August 1983 until May 1995, where he most recently held the position of
Senior Vice President of Marketing and Development. From May 1995 until January
1999 Mr. Komnenovich was Executive Vice President and Chief Financial Officer of
International Airmotive Holding Corporation ("IAHC") a corporation formed as a
holding company for the stock of International Turbine Service, Inc. and Dallas
Airmotive, Inc. Dallas Airmotive, Inc. is engaged in the business of overhauling
aircraft engines and International Turbine Service, Inc. is engaged in the sale
of aircraft engine parts. Mr. Komnenovich is a United States citizen.
THE CONESE GROUP
Conese Capital. Conese Capital is a limited liability company for the
purpose of acting as partner in entities which invest directly or indirectly in
securities.
Conese F.P. Conese F.P. is a limited partnership formed for the purpose of
investing in securities.
Conese G.P. Conese G.P. is a corporation formed to be the general partner
of Conese F.P. Conese G.P. is the general partner of Conese F.P.
Mr. Conese, Sr. Mr. Conese, Sr. is currently the Chairman and principal
stockholder of World Air Lease, Inc., a jet engine leasing company supplying the
aviation and utility industries. Mr. Conese, Sr. was the Chairman of the Board
of Directors and Chief Executive Officer of Greenwich Air Services, Inc. since
October 1987 until its sale to General Electric Company in September 1997. Mr.
Conese, Sr. was also the founder, principal stockholder, Chief Executive Officer
and Chairman of the Board of The Greenwich Company Ltd. ("GCL"), a private
holding company formed in 1980, which acquired Greenwich Air Services, Inc. in
October 1987 and which was subsequently sold to General Electric Company in
September 1997. Prior to acquiring Greenwich Air Services, GCL acquired Haskon
Corporation ("Haskon"), a manufacturer of specialized seals for aircraft and
aircraft engines and founded EPCO Technologies, Inc. ("EPCO"), a company which
produces specialty plastic components for consumer products. Haskon and EPCO
were both sold to BTR Plc. in 1988, and GCL was merged with and into Greenwich
Air Services as of December 30, 1995. From 1970 to 1979, Mr. Conese, Sr. served
as President, Chief Executive Officer and member of the Board of Directors of
Irvin Industries, Inc., an American Stock Exchange listed company engaged in the
manufacture and distribution of a number of products for the aerospace and
automotive industries. Mr. Conese, Sr. is Chairman of World Air Lease, Inc. and
is a consultant to General Electric Company's
11
<PAGE>
Engine Services Group. He is a member of the Board of Directors of Trans World
Airlines, Inc. and Renex Corporation where he serves as Chairman of the
Compensation Committee. He is also on the Board of Trustees of Iona College, the
Board of Directors of Jackson Memorial Foundation and is a Board member of the
Conese Foundation. Mr. Conese, Sr. is a United States citizen.
THE ROWE GROUP
AeroGroup. AeroGroup is a limited liability company formed for the purpose
of investing in securities.
AeroEquity. AeroEquity is a private management and investment firm that
invests primarily in the aviation industry.
Mr. Brian H. Rowe. Mr. Rowe is co-founder and Chairman of AeroEquity.
For a more detailed description of Mr. Rowe's background and experience, see
Exhibit A. Mr. Rowe is a United States citizen.
Mr. David H. Rowe. Mr. Rowe is co-founder and Managing Director of
AeroEquity. Mr. Rowe is a United States citizen.
CERTAIN PROCEEDINGS
During the last five years, none of the members of the Kincaid
Group, the Conese Group or the Rowe Group mentioned above have been convicted in
a criminal proceeding (excluding traffic violations and similar misdemeanors) or
were a party to a civil proceeding of a judicial or administrative body as a
result of which any of such persons was or is subject to a judgment, decree or
final order enjoining future violations of, or prohibiting or mandating
activities subject to, United States federal or state securities laws or finding
any violation with respect to such law.
CERTAIN DIRECTORS, OFFICERS
AND EMPLOYEES OF THE NOLAN GROUP
The following table sets forth the present principal occupation or
employment, and the name, principal business and address of any corporation or
other organization in which such employment is carried on, of certain members,
directors, officers, employees and other representatives of Nolan Group, who, in
each case, may also assist in soliciting proxies from Stockholders.
12
<PAGE>
CERTAIN DIRECTORS, OFFICERS
AND EMPLOYEES OF THE KINCAID GROUP
NAME AND PRINCIPAL
BUSINESS ADDRESS
(WHERE NOT PRESENT OFFICE OR OTHER
PREVIOUSLY PROVIDED) PRINCIPAL OCCUPATION OR EMPLOYMENT
- -------------------- ----------------------------------
DAN KOMNENOVICH Director, Senior Vice President and Treasurer of
Kincaid Capital.
RICHARD JONES Director and Senior Vice President and Secretary of
Kincaid Capital.
THOMAS R. KINCAID Director and President of Kincaid Capital.
13
<PAGE>
CERTAIN DIRECTORS, OFFICERS
AND EMPLOYEES OF THE CONESE GROUP
NAME AND PRINCIPAL
BUSINESS ADDRESS
(WHERE NOT PRESENT OFFICE OR OTHER
PREVIOUSLY PROVIDED) PRINCIPAL OCCUPATION OR EMPLOYMENT
- -------------------- ----------------------------------
EUGENE P. CONESE, SR. Sole stockholder of Conese G.P.; Chairman of World
Air Lease, Inc.
EUGENE P. CONESE, JR. Director, Vice President and Director of Conese G.P.;
Director, President and Chief Executive Officer of
New Canaan Corporation
DEBORAH A. CONESE EGAN Director and President of Conese G.P.
c/o Conese G.P.
55 Alhambra Plaza
Coral Gables, Florida 33134
MARK CONESE Director, Conese G.P.
c/o Conese G.P.
55 Alhambra Plaza
Coral Gables, Florida 33134
CERTAIN MEMBERS
AND EMPLOYEES OF ROWE GROUP
NAME AND PRINCIPAL
BUSINESS ADDRESS
(WHERE NOT PRESENT OFFICE OR OTHER
PREVIOUSLY PROVIDED) PRINCIPAL OCCUPATION OR EMPLOYMENT
- -------------------- ----------------------------------
BRIAN H. ROWE Chairman of AeroEquity, Inc.;
Chairman Emeritus of G.E Aircraft Engines; Director
of: Fifth Third Bancorp; Convergys Corporation;
Stewart and Stevenson Services, Inc.; Atlas Air, Inc.;
BE Aerospace, Inc.; Textron Inc. and Dynatech
Corporation
DAVID H. ROWE Managing Director AeroEquity, Inc.
14
<PAGE>
TRANSACTIONS IN AVIALL'S SECURITIES
The following is a summary of all transactions in Company securities
by members of the Nolan Group over the last two years.
Date of Transaction Nature of Transaction Number of Shares
- ------------------- --------------------- ----------------
02/01/98 Purchase by Brian H. Rowe1 13,500
02/11/98 Purchase by AeroEquity, Inc.2 150
02/12/98 Purchase by AeroEquity, Inc.2 140
02/17/98 Purchase by AeroEquity, Inc.2 145
02/19/98 Purchase by AeroEquity, Inc.2 120
02/24/98 Purchase by AeroEquity, Inc.2 142
02/27/98 Purchase by AeroEquity, Inc.2 100
03/03/98 Purchase by AeroEquity, Inc.2 100
06/29/98 Purchase by AeroEquity, Inc.2 100
08/12/98 Purchase by AeroEquity, Inc.2 100
08/19/98 Purchase by AeroEquity, Inc.2 800
08/20/98 Purchase by AeroEquity, Inc.2 200
09/17/98 Purchase by AeroEquity, Inc.2 700
10/01/98 Purchase by AeroEquity, Inc.2 542
10/05/98 Purchase by T.R. Kincaid3 20,000
10/06/98 Purchase by T.R. Kincaid3 20,000
10/07/98 Purchase by T.R. Kincaid3 40,000
10/08/98 Purchase by T.R. Kincaid3 20,000
10/08/98 Purchase by T.R. Kincaid3 4,200
10/09/98 Purchase by T.R. Kincaid3 35,800
10/13/98 Purchase by T.R. Kincaid3 60,000
10/14/98 Purchase by T.R. Kincaid3 30,000
10/15/98 Purchase by T.R. Kincaid3 20,000
10/19/98 Purchase by T.R. Kincaid3 10,000
10/21/98 Purchase by Nolan 200,000
10/22/98 Purchase by Nolan 150,000
10/23/98 Purchase by Nolan 25,000
10/26/98 Purchase by AeroEquity, Inc.2 200
10/27/98 Purchase by Nolan 180,800
10/28/98 Purchase by AeroEquity, Inc.2 100
10/28/98 Purchase by AeroEquity, Inc.2 100
10/28/98 Purchase by Nolan 200,000
10/30/98 Purchase by Nolan 11,000
11/03/98 Purchase by Nolan 85,200
11/04/98 Purchase by Nolan 153,000
11/04/98 Purchase by AeroEquity, Inc.2 340
15
<PAGE>
11/05/98 Purchase by AeroEquity, Inc.2 55
11/05/98 Purchase by AeroEquity, Inc.2 200
11/09/98 Purchase by AeroEquity, Inc.2 785
11/13/98 Purchase by AeroEquity, Inc.2 110
11/16/98 Purchase by AeroEquity, Inc.2 100
11/17/98 Purchase by AeroEquity, Inc.2 500
11/19/98 Purchase by AeroEquity, Inc.2 200
11/20/98 Purchase by AeroEquity, Inc.2 100
11/23/98 Purchase by AeroEquity, Inc.2 100
12/03/98 Purchase by Nolan 41,000
01/19/99 Purchase by Nolan 102,000
01/19/99 Purchase by Nolan 15,000
01/19/99 Purchase by Nolan 40,000
01/19/99 Purchase by Nolan 8,300
01/19/99 Purchase by Nolan 35,100
01/19/99 Purchase by Nolan 6,500
01/20/99 Sale by Nolan 5,000
01/20/99 Sale by Nolan 15,000
01/20/99 Sale by Nolan 7,500
01/20/99 Sale by Nolan 7,500
01/20/99 Sale by Nolan 25,000
01/26/99 Purchase by AeroEquity, Inc.2 2,500
01/26/99 Purchase by AeroEquity, Inc.2 7,500
01/26/99 Purchase by AeroEquity, Inc.2 10,000
01/27/99 Purchase by AeroEquity, Inc.2 5,000
01/27/99 Purchase by AeroEquity, Inc.2 7,000
01/27/99 Purchase by AeroEquity, Inc.2 10,000
01/27/99 Purchase by AeroEquity, Inc.2 15,500
01/27/99 Purchase by AeroEquity, Inc.2 21,500
01/27/99 Purchase by AeroEquity, Inc.2 2,500
01/27/99 Purchase by AeroEquity, Inc.2 5,000
01/29/99 Purchase by AeroEquity, Inc.2 200
02/11/99 Purchase by AeroEquity, Inc.2 5,000
02/12/99 Purchase by AeroEquity, Inc.2 16,500
02/12/99 Purchase by AeroEquity, Inc.2 8,500
- ----------------------
1 Shares purchased by Mr. Rowe were contributed "at cost" to AeroEquity on
March 9, 1999 and subsequently contributed "at cost" to AeroGroup on
March 10, 1999.
16
<PAGE>
2 Shares purchased by AeroEquity, Inc., a Florida corporation
("AeroEquity") and an affiliate of Brian H. Rowe and David H. Rowe, were
contributed "at cost" to AeroGroup on March 10, 1999.
3 Shares purchased by Mr. Kincaid were contributed "at cost" to Nolan
Acquisition on October 20, 1998 which, in turn, contributed such shares
"at cost" to Nolan on October 30, 1998.
17
<PAGE>
CONSENT
I, Eugene P. Conese, Jr., hereby consent (i) to serve as a director of
Aviall, Inc. (the "Company") if elected at the 1999 Annual Meeting of the
Company, and (ii) to be named in the proxy statement to be filed in conjunction
with my nomination to the Board of Directors of the Company by Nolan Acquisition
Partners and AeroGroup I, Ltd. Co.
IN WITNESS WHEREOF, the undersigned has caused this Consent to be
executed and delivered on this 12th day of March, 1999.
/s/ Eugene P. Conese, Jr.
-------------------------------
Eugene P. Conese, Jr.
18
<PAGE>
CONSENT
I, Brian H. Rowe, hereby consent (i) to serve as a director of Aviall,
Inc. (the "Company") if elected at the 1999 Annual Meeting of the Company, and
(ii) to be named in the proxy statement to be filed in conjunction with my
nomination to the Board of Directors of the Company by Nolan Acquisition
Partners and AeroGroup I, Ltd. Co.
IN WITNESS WHEREOF, the undersigned has caused this Consent to be
executed and delivered on this 12th day of March, 1999.
/s/ Brian H. Rowe
-------------------------------
Brian H. Rowe
19
<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)
----------
AVIALL, INC.
(Name of Issuer)
Common Stock, $.01 par value per share 05366B102
(Title of class of securities) (CUSIP number)
David E. Zeltner, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153 (212) 310-8000
(Name, address and telephone number of person authorized
to receive notices and communications)
March 1, 1999
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 16 pages)
================================================================================
NY2:\285238\01\643@01!.DOC\65575.0003
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 2 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
<S> <C>
1 NAME OF REPORTING PERSON NOLAN ACQUISITION PARTNERS
S.S. OR I.R.S. IDENTIFICATION NO. 75-2787642
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- ----------------------------------------------------------------- -------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- ------------------------------------------------------------------------------------------------- -----
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- ------------------------------------------------------------------------ ------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Texas
- ---------------------- ------------------------------------------------------------------------ ------------------------------
7 SOLE VOTING POWER: 1,452,900
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 0
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 1,452,900
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 0
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 3 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON NOLAN ACQUISITION GROUP, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 75-2786370
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 4 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON KINCAID CAPITAL GROUP,
a Texas corporation
S.S. OR I.R.S. IDENTIFICATION NO. 75-2779494
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Texas
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 5 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON THOMAS R. KINCAID
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 6 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON DAN KOMNENOVICH
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 7 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON RICHARD JONES
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 8 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON CONESE CAPITAL, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. 58-2423275
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 9 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON CONESE FAMILY PARTNERSHIP
(NEVADA), L.P.
S.S. OR I.R.S. IDENTIFICATION NO. 88-0381099
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Nevada
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: PN
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 10 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON CONESE GENERAL PARTNER
(NEVADA), INC.
S.S. OR I.R.S. IDENTIFICATION NO. 88-0381098
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Nevada
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: CO
- ---------------------- -------------------------------------------------------------------------------------------------------
<PAGE>
- ----------------------------------------------------------- --------------------------------------------------------
CUSIP No. 05366B102 13D Page 11 of 16 pages
- ----------------------------------------------------------- --------------------------------------------------------
- ---------------------- -------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON EUGENE P. CONESE
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ---------------------- -------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [X]
(b) [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------- -------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS: PF
- ---------------------- -------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States of America
- ---------------------- -------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER: 0
NUMBER OF
SHARES
------------------- ------------------------------------------------ ------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,452,900
OWNED BY
------------------- ------------------------------------------------ ------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------------------- ------------------------------------------------ ------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON:
1,452,900
- ---------------------- -------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [ ]
- ---------------------- -------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 8.0%
- ---------------------- -------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ---------------------- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
This Amendment No. 4 ("Amendment No. 4") amends the Statement on
Schedule 13D (the "Schedule 13D") filed on November 9, 1998, as amended by
Amendment No. 1 filed on December 5, 1998, Amendment No. 2 filed on January 22,
1999 and Amendment No. 3 filed February 2, 1999, by and on behalf of the
following persons (collectively, the "Reporting Persons"): Nolan Acquisition
Partners, a Texas general partnership ("NAP"), Nolan Acquisition Group, L.P., a
Delaware limited partnership ("NAG"), Kincaid Capital Group, a Texas Corporation
("Kincaid Capital"), Thomas R. Kincaid ("Kincaid"), Richard Jones ("Jones"), Dan
Komnenovich ("Komnenovich"), Conese Capital, L.L.C., a Delaware limited
liability company ("CCL"), Conese Family Partnership (Nevada), L.P., a Nevada
limited partnership ("CFP"), Conese General Partner (Nevada), Inc., a Nevada
corporation ("CGN") and Eugene P. Conese ("Conese"). Capitalized terms used
herein and not defined herein have the meanings ascribed thereto in the Schedule
13D.
ITEM 4. PURPOSE OF TRANSACTION.
On February 23, 1999, the Issuer publicly announced, among
other things, that it had retained Merrill Lynch & Co. to assist the Company in
exploring possible strategic alternatives to improve shareholder value. On March
1, 1999, Mr. Eugene P. Conese, Sr., on behalf of the Reporting Persons, sent a
letter to the Issuer's Board of Directors (the "March 1 Letter") that reads as
follows:
NOLAN ACQUISITION PARTNERS
125 E. John Carpenter Freeway
Suite 190
Irving, Texas 75062
972-501-0007
972-501-0477 Fax
March 1, 1999
Board of Directors
Aviall, Inc.
2075 Diplomat Drive
Dallas, Texas 75234-8999
Attn: Mr. Eric Anderson,
Chairman, President and Chief Executive Officer
Dear Directors:
As you know, in our letter to Eric Anderson of January 29,
1999, we recommended that Aviall engage a reputable investment banking firm to
explore a sale of the Company or other transaction that would create shareholder
value. We are therefore encouraged by the Company's February 23 announcement
that it has engaged Merrill Lynch & Co. to assist the Company in exploring
possible strategic alternatives to improve shareholder value.
12
<PAGE>
As the holders of 1,452,900 shares of the common stock of
Aviall, constituting approximately 8.0% of the outstanding shares, we share your
belief that Aviall's potential has not been reflected in its stock price and
that Aviall should pursue strategic alternatives to enhance shareholder value.
We are prepared to offer just such an alternative and hereby propose a
"friendly" cash merger transaction of Aviall with a corporation to be formed by
our group for that purpose in which all Aviall shareholders (other than our
group) would receive $15.50 per share in cash in exchange for their common
stock. We are highly confident that we can obtain commitments for debt and
equity financing sufficient to fund the acquisition.
Our proposal is subject to our being afforded the opportunity
to, and our being satisfied with the results of, a diligence review of Aviall,
its properties and businesses. Depending upon the results of our review, we may
be prepared to increase our offer. We and our advisors are also prepared to
commence such a review promptly with your cooperation and would be willing to
enter into a confidentiality agreement in connection therewith (but not any such
agreement that would limit our rights as shareholders).
We will keep our cash merger proposal open while you are
studying strategic alternatives until March 26, 1999. If the Board of Directors
does not determine to proceed with our cash merger proposal, we assume that it
will be because the Board of Directors has determined that an alternative plan
will provide greater value for Aviall's shareholders. If, in our opinion, any
such alternative plan provides greater value for Aviall's shareholders, we will
be supportive of such alternative plan unless we determine to increase our cash
merger bid.
Although we do not regard our interest in Aviall as anything
other than "friendly," in view of the upcoming annual meeting of shareholders
and the importance of these strategic issues, we reserve our right to initiate
shareholder proposals in favor of a sale of the Company at the highest possible
price and/or nominate a slate of directors who would pursue such a sale. We also
reserve the right to initiate a tender offer for Aviall stock at a price which
may differ from the proposed merger price or to pursue other alternatives to
maximize shareholder value.
We hope that our proposal will be favorably acted upon by the
Board of Directors so that our respective advisors can proceed with the
preparation of definitive agreements containing customary representations, terms
and conditions.
Sincerely,
/s/Eugene P. Conese
Eugene P. Conese, Sr.
Cc: Thomas Kincaid
EPC,Sr/ml
13
<PAGE>
The Reporting Persons' future course of action will be
influenced by the Issuer's response to the cash merger proposal set forth in the
March 1 Letter (the "Nolan Group Proposal") and by any alternative plan adopted
by the Issuer's Board of Directors.
As indicated in the March 1 Letter and in view of the fact
that the Issuer's Board of Directors has not announced that it has determined to
sell the Company, the Reporting Persons may initiate shareholder proposals in
favor of such a sale at the highest possible price and/or nominate a slate of
directors who would pursue such a sale. In addition, the Reporting Persons
reserve the right to initiate a tender offer for the Common Stock at a price
that may differ from the price per share offered in the Nolan Group Proposal.
The Reporting Persons may also acquire additional shares of Common Stock
(subject to availability of shares at prices deemed favorable) in the open
market or in privately negotiated transactions, and may contact the Issuer, its
representatives, other persons interested in the Issuer or persons interested in
financing the Nolan Group Proposal or participating in any proxy solicitation
that may be commenced by the Reporting Persons.
Alternatively, while it is not the Reporting Persons' present
intention to do so, the Reporting Persons reserve the right to dispose of some
or all of their shares of Common Stock in the open market or in privately
negotiated transactions to third parties, or otherwise, depending upon the
course of action that the Reporting Persons pursue, market conditions and other
factors.
Although the foregoing represents the range of activities
presently contemplated by the Reporting Persons with respect to the Common
Stock, it should be noted that the possible activities of the Reporting Persons
are subject to change at any time.
Except as set forth above, as of the date of this statement
none of the Reporting Persons has any plans or proposals which relate to or
would result in any of the actions set forth in parts (a) through (j) of Item 4.
Such persons may at any time reconsider and change their plans or proposals
relating to the foregoing.
14
<PAGE>
SIGNATURE
The undersigned, after reasonable inquiry and to the best of their knowledge and
belief, certify that the information set forth in this Statement is true,
complete and correct.
Dated: March 2, 1999 NOLAN ACQUISITION PARTNERS
By: Nolan Acquisition Group, L.P.,
its Managing General Partner
By: Kincaid Capital Group,
a Texas corporation,
its General Partner
By: /s/ Richard Jones
-------------------------------
Print Name: Richard Jones
Title: Senior Vice President
NOLAN ACQUISITION GROUP, L.P.
By: Kincaid Capital Group,
a Texas corporation,
its General Partner
By: /s/ Richard Jones
-----------------------------------
Print Name: Richard Jones
Title: Senior Vice President
KINCAID CAPITAL GROUP, a Texas corporation
By: /s/ Richard Jones
---------------------------------------
Print Name: Richard Jones
Title: Senior Vice President
/s/ Thomas R. Kincaid
---------------------------------------
Thomas R. Kincaid
/s/ Richard Jones
---------------------------------------
Richard Jones
/s/ Dan Komnenovich
---------------------------------------
Dan Komnenovich
15
<PAGE>
CONESE CAPITAL, L.L.C.
By: Conese Family Partnership
(Nevada), L.P., its sole member
By: Conese General Partner (Nevada), Inc.,
its General Partner
By: /s/ Eugene P. Conese, Jr.
-----------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
CONESE FAMILY PARTNERSHIP (NEVADA), L.P.
By: Conese General Partner (Nevada), Inc.,
its General Partner
By: /s/ Eugene P. Conese, Jr.
---------------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
CONESE GENERAL PARTNER (NEVADA), INC.
By: /s/ Eugene P. Conese, Jr.
-------------------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
/s/ Eugene P. Conese
-------------------------------------------
Eugene P. Conese
16
<PAGE>
NOLAN ACQUISITION PARTNERS
125 E. JOHN CARPENTER FREEWAY
IRVING, TEXAS 75062
March 11, 1999
AeroEquity, Inc.
c/o Brian H. Rowe
Suite B
7414 Hodgson Memorial Drive
Savannah, GA 31411
Dear Brian:
As we discussed, each of Nolan Acquisition Partners ("Nolan") and
AeroEquity, Inc., or its assigns ("AeroEquity"), are stockholders of Aviall,
Inc. ("Aviall") and, consequently, we share an interest in maximizing the value
of Aviall's common stock. To this end, we hereby mutually agree as follows:
1. Each of us shall consult with the other prior to any purchase or
sale of any shares of Aviall's common stock ("Shares"), and will promptly notify
the other of any such purchase or sale, including the number of shares purchased
or sold, the purchase or sales price, the date of the transaction and the manner
in which the transaction was effected.
2. Each of us shall consult with the other prior to voting our
respective Shares on any matter subject to a stockholder vote and shall notify
the other regarding how any Shares have been voted.
3. AeroEquity, Inc. acknowledges that Nolan and certain other persons
have filed a Statement on Schedule 13D and amendments thereto with the
Securities and Exchange Commission ("SEC") with respect to their beneficial
ownership of Shares and that, as a result of the agreements set forth herein,
AeroEquity, Inc. may be deemed to be a member of a group with Nolan and such
other persons for purposes thereof. Consequently, AeroEquity agrees to file
separately or join with Nolan and such other persons in filing any Statement on
Schedule 13D or amendment thereto as may be required by law (each, a "Schedule
13D Filing"). Accordingly, each of us agrees to provide to the other (and, in
the case of Nolan, cause the other persons with whom it has filed a Schedule 13D
to provide to you) all information necessary to effect any Schedule 13D Filing.
We further agree to consult with each other prior to adopting any plans or
proposals which relate to or would result in any of the actions required to be
set forth in parts (a) through (j) of Item 4 of Schedule 13D.
4. Effective from and after the date hereof and unless and until this
agreement is terminated by either of us (hereinafter, the "Term"), we each agree
NY2:\320536\03\6vbs03!.DOC\65575.0003
<PAGE>
to pay our "Proportionate Share" (as defined below), calculated as of the date
of incurrence of any such Expense, of any expenses reasonably incurred by either
of us in connection with our investment in Shares and efforts made to maximize
the value thereof (collectively, "Expenses"), including, without limitation: (i)
legal expenses incurred in connection with Schedule 13D filings and any other
filings with the SEC, legal and other expenses incurred in connection with
communications with the Company, stockholders or other persons interested in
Aviall (such as printing, mailing, telephone, travel and related costs), fees or
expenses of accountants, consultants or other third parties ("Third Party
Expenses"); (ii) Indemnifiable Expenses; (iii) Contribution Expenses and (iv)
Financing Expenses (as such capitalized terms are hereinafter defined);
provided, however, that no party hereto shall be obligated to pay its
Proportionate Share of any Third Party Expense or Financing Expense unless prior
to incurrence of any such Expense the nature of, and reasons for, incurrence of
such Expense shall have been discussed among the parties hereto and approved by
the party to be so obligated ("Pre-Approved"). Each of us will promptly upon
request reimburse the other party for its "Proportionate Share" of any Expenses
paid or advanced by such other party. Unless otherwise agreed, we shall account
to each other for Expenses paid or advanced during any month prior to the
conclusion of the immediately following month.
For purposes hereof, the following terms shall have the following
meanings:
"Proportionate Share" of either party hereto, as of any date, shall
mean a fraction, the numerator of which is equal to the highest number of Shares
beneficially owned by such party on such date and the denominator of which is
the aggregate of the highest number of such Shares beneficially owned by both
parties on such date.
"Indemnifiable Expenses" shall mean all expense, liability and loss
(including attorneys' fees, judgments, fines and amounts paid or to be paid in
any settlement approved in advance by the other, such approval not to be
unreasonably withheld) actually incurred or suffered by either of us in
connection with any present or future threatened, pending or contemplated
investigation, claim, action, suit or proceeding, whether civil, criminal,
administrative or investigative (collectively, "Indemnifiable Litigation"), to
which either of us is made a party or is threatened to be made a party by reason
of any action or inaction taken or omitted in connection with the ownership of
Aviall's common stock, including any efforts to maximize the value thereof.
Notwithstanding anything to the contrary contained herein, a party hereto shall
not have any obligation to indemnify or hold harmless the other for any
Indemnifiable Expense arising out of such other party's fraud, willful
misconduct or gross negligence. For purposes of paragraphs 4 and 6 "willful
misconduct" shall include, but not be limited to, (i) an intentionally untrue
statement of a material fact, or (ii) an intentional omission to state a
material fact necessary in order to make the statements made, in light of the
circumstances under which they were made, not misleading, in each case, as such
material facts are required to be disclosed under applicable state or federal
securities laws.
"Financing Expenses" shall mean any fees or expenses payable to banks,
investment banking firms or other financing services for raising debt or equity
capital in connection with any acquisition or proposed acquisition of Aviall in
which either of us would hold an ongoing equity interest in Aviall, its
successor or assets, including, without limitation, engagement, commitment and
2
<PAGE>
financing fees and the reimbursement of any costs or expenses of any third party
financing source.
5. As a condition precedent to the right of either party hereto to be
paid a portion of any Indemnifiable or Contribution Expenses by the other party,
such party shall give the other party hereto notice in writing as soon as
practicable of any claim made against it for which indemnification will or could
be sought under this agreement. No failure to give such notice shall relieve any
party hereto from any obligation to pay Indemnifiable or Contribution Expenses
hereunder, except to the extent such failure shall materially and adversely
affect and prejudice the other party hereto.
6. The parties shall jointly cooperate in the defense of any
Indemnifiable Litigation. In the event that the payment of Indemnifiable
Expenses as provided in this agreement is unavailable to or insufficient to hold
harmless either of us otherwise entitled thereto, for any reason, each of us
agrees to contribute to the aggregate expense, liability and loss (including
legal or other expenses reasonably incurred in connection with investigating or
defending the same) to which the other may be subject in proportion to each of
our respective Proportionate Shares ("Contribution Expense"). Each of us agrees
that it would not be just and equitable if contribution were determined by any
other method of allocation. Notwithstanding anything to the contrary contained
herein, a party shall not be entitled to contribution for any Contribution
Expense from the other for any liability or expenses arising out of such party's
fraud, willful misconduct or gross negligence.
7. In the event that either party or any of their respective
affiliates, directly or indirectly, acquires Aviall, all or a portion of its
business and operations or all or substantially all of the issued and
outstanding Shares not owned by us as of the date hereof (a "Change of
Control"), each of us (vis-a-vis the other) shall have the right to participate
in such transaction at the same price and other terms and conditions of
investment as the other party.
8. Either party may terminate this agreement at any time by delivering
a written notice of termination to the other party. Notwithstanding any such
termination, (i) the provisions of paragraph 7 will survive the termination of
this agreement upon a Change of Control prior to the date of such termination,
and (ii) the provisions of paragraphs 4, 5 and 6 will survive termination of
this agreement as to any claims arising from facts that shall have occurred on
or prior to the date of such termination. Upon a termination of this agreement
by either party, the parties, except as provided under this paragraph 8, shall
have no further obligation to the other.
9. This agreement is the only agreement between the parties hereto with
respect to the subject matter hereof. Nothing in this agreement shall be
construed or be deemed to create a partnership, joint venture or similar
relationship among the parties hereto and the only obligations of the parties to
one another hereunder shall be as expressly set forth herein.
10. This agreement may be signed in counterparts, each of which shall
be deemed to be an original instrument, and shall together constitute one and
the same agreement.
3
<PAGE>
If the foregoing accurately sets forth our mutual agreement (which
shall be governed by the laws of the State of New York without regard to the
principles thereof regarding the conflict or choice of laws), please so indicate
by signing a copy of this agreement where indicated below and returning it to
the undersigned.
Very truly yours,
NOLAN ACQUISITION PARTNERS
By: Nolan Acquisition Group, L.P.,
its Managing General Partner
By: Kincaid Capital Group,
a Texas corporation,
its General Partner
By: /s/ Thomas R. Kincaid
------------------------------------
Name: Thomas R. Kincaid
Title: President
Accepted and Agreed:
AEROEQUITY, INC.
By: /s/ Brian Rowe
------------------------------
Name: Brian Rowe
Title: President
4
EXHIBIT 11
TRANSACTIONS IN SHARES OF THE COMPANY
The Reporting Persons engaged in the following transactions in
Shares of the Company during the past 60 days or since the filing of Amendment
No. 4 to the Schedule 13D, whichever is less. All such transactions involved
purchases of Shares and all transactions were effected on The New York Stock
Exchange.
<TABLE>
<CAPTION>
Reporting Person
With Direct
Beneficial Price Per Share
Ownership Date of Transaction Number of Shares Type of Transaction (Excluding Commission)
- --------- ------------------- ---------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
AeroEquity 01/26/99 2,500 Purchase $11.19
AeroEquity 01/26/99 7,500 Purchase $11.13
AeroEquity 01/26/99 10,000 Purchase $10.88
AeroEquity 01/27/99 5,000 Purchase $11.38
AeroEquity 01/27/99 7,000 Purchase $11.44
AeroEquity 01/27/99 10,000 Purchase $11.38
AeroEquity 01/27/99 15,500 Purchase $11.50
AeroEquity 01/27/99 21,500 Purchase $11.38
AeroEquity 01/27/99 2,500 Purchase $11.25
AeroEquity 01/27/99 5,000 Purchase $11.13
AeroEquity 01/29/99 200 Purchase $11.75
AeroEquity 02/11/99 5,000 Purchase $10.88
AeroEquity 02/12/99 16,500 Purchase $10.94
AeroEquity 02/12/99 8,500 Purchase $10.88
</TABLE>
EXHIBIT 12
The undersigned acknowledge and agree that the foregoing
statement on Schedule 13D is filed on behalf of each of the undersigned and that
all subsequent amendments to this statement on Schedule 13D shall be filed on
behalf of each of the undersigned without the necessity of filing additional
joint acquisition statements. The undersigned acknowledge that each shall be
responsible for the timely filing of such amendments, and for the completeness
and accuracy of the information concerning him or her contained therein, but
shall not be responsible for the completeness and accuracy of the information
concerning the others, except to the extent that he or she knows of or has
reason to believe that such information is not accurate.
Dated: March 12, 1999 NOLAN ACQUISITION PARTNERS
By: Nolan Acquisition Group, L.P.,
its Managing General Partner
By: Kincaid Capital Group, a Texas corporation,
its General Partner
By: /s/ Richard Jones
---------------------------------------
Print Name: Richard Jones
Title: Senior Vice President
NOLAN ACQUISITION GROUP, L.P.
By: Kincaid Capital Group, a Texas corporation,
its General Partner
By: /s/ Richard Jones
-------------------------------------------
Print Name: Richard Jones
Title: Senior Vice President
<PAGE>
KINCAID CAPITAL GROUP, a Texas corporation
By: /s/ Richard Jones
-----------------------------------------------
Print Name: Richard Jones
Title: Senior Vice President
/s/ Thomas R. Kincaid
-----------------------------------------------
Thomas R. Kincaid
/s/ Richard Jones
-----------------------------------------------
Richard Jones
/s/ Dan Komnenovich
-----------------------------------------------
Dan Komnenovich
CONESE CAPITAL, L.L.C.
By: Conese Family Partnership
(Nevada), L.P., its sole member
By: Conese General Partner (Nevada), Inc., its
General Partner
By: /s/ Eugene P. Conese, Jr.
--------------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
CONESE FAMILY PARTNERSHIP (NEVADA), L.P.
By: Conese General Partner (Nevada), Inc.,
its General Partner
By: /s/ Eugene P. Conese, Jr.
-------------------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
<PAGE>
CONESE GENERAL PARTNER (NEVADA), INC.
By: /s/ Eugene P. Conese, Jr.
-----------------------------------------------
Print Name: Eugene P. Conese, Jr.
Title: Vice President
/s/ Eugene P. Conese
-----------------------------------------------
Eugene P. Conese
AEROEQUITY, INC.
By: /s/ Brian H. Rowe
-----------------------------------------------
Print Name: Brian H. Rowe
Title: Chairman and President
AEROGROUP I, LTD. CO.
By: AeroEquity, Inc., its sole member
By: /s/ Brian H. Rowe
-------------------------------------------
Print Name: Brian H. Rowe
Title: Chairman and President
/s/ Brian H. Rowe
-------------------------------------------
Brian H. Rowe
