##### 



EXHIBIT 2.1
 AGREEMENT AND PLAN OF MERGER
 BY AND AMONG
 AT HOLDINGS CORPORATION
 ARGO-TECH CORPORATION
 GREATBANC TRUST COMPANY,
 AS TRUSTEE FOR THE ARGO-TECH CORPORATION
 EMPLOYEE STOCK OWNERSHIP PLAN
 V. G. A. T. INVESTORS, LLC
 VAUGHN MERGER SUB, INC.
 Dated as of September 13, 2005




---



##### 



TABLE OF CONTENTS
 PageARTICLE IDEFINITIONS
    
    
    1Section 1.1.
    
    Certain Definitions
    
    
    1Section 1.2.
    
    Interpretation
    
    
    16Section 1.3.
    
    Actions Simultaneous
    
    
    17ARTICLE IITHE MERGER
    
    
    17Section 2.1.
    
    The Merger
    
    
    17Section 2.2.
    
    Effective Time
    
    
    17Section 2.3.
    
    Closing of the Merger
    
    
    17Section 2.4.
    
    Effects of the Merger
    
    
    19Section 2.5.
    
    Organizational Documents
    
    
    19Section 2.6.
    
    Board of Directors
    
    
    19Section 2.7.
    
    Officers
    
    
    19Section 2.8.
    
    Effect of the Merger on the Outstanding Securities of the
 Company; Exchange Procedures; and Treatment of Options
    
    
    19Section 2.9.
    
    Pre-Closing Determination of Merger Consideration
    
    
    23Section 2.10.
    
    Wire Transfer Instructions and Payments
    
    
    23Section 2.11.
    
    Withholding Rights; Certain Taxes
    
    
    25ARTICLE IIIREPRESENTATIONS AND WARRANTIES OF THE COMPANY
    
    
    26Section 3.1.
    
    Organization
    
    
    26Section 3.2.
    
    Subsidiaries
    
    
    26Section 3.3.
    
    Authorization
    
    
    27Section 3.4.
    
    Capitalization
    
    
    28Section 3.5.
    
    Governmental Consents and Approvals
    
    
    28Section 3.6.
    
    Litigation
    
    
    28Section 3.7.
    
    Compliance with Laws
    
    
    29Section 3.8.
    
    No Violations
    
    
    29Section 3.9.
    
    Property
    
    
    30Section 3.10.
    
    Tangible Assets
    
    
    31Section 3.11.
    
    Financial Information; Liabilities; SEC Filings
    
    
    31Section 3.12.
    
    Taxes
    
    
    32Section 3.13.
    
    Employment Benefits
    
    
    35Section 3.14.
    
    Transactions with Affiliates
    
    
    37Section 3.15.
    
    Assumptions or Guaranties of Indebtedness of Other Persons
    
    
    37Section 3.16.
    
    Loans to Other Persons
    
    
    37Section 3.17.
    
    Absence of Certain Changes
    
    
    37Section 3.18.
    
    Labor Relations
    
    
    39Section 3.19.
    
    Insurance
    
    
    40Section 3.20.
    
    Books and Records
    
    
    40
 i




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##### 



PageSection 3.21.
    
    Material Contracts
    
    
    40Section 3.22.
    
    Environmental Matters
    
    
    42Section 3.23.
    
    Intellectual Property
    
    
    43Section 3.24.
    
    List of Government Contracts, Subcontracts and Bids
    
    
    45Section 3.25.
    
    Compliance, Performance, Termination and Breach of Government Contracts
    
    
    45Section 3.26.
    
    Internal Controls, Audits and Investigations
    
    
    46Section 3.27.
    
    Debarment, Suspension and Exclusion
    
    
    46Section 3.28.
    
    Absence Of Unlawful Payments
    
    
    47Section 3.29.
    
    Compliance with Customs & International Trade Laws
    
    
    47Section 3.30.
    
    Customers and Suppliers
    
    
    48Section 3.31.
    
    Warranties
    
    
    48Section 3.32.
    
    Operations of the Company
    
    
    48Section 3.33.
    
    Company Expenses and Closing Dividends/Investments
    
    
    48Section 3.34.
    
    Required Vote of Company Stock
    
    
    49Section 3.35.
    
    State Takeover Laws
    
    
    49Section 3.36.
    
    No Brokers or Finders
    
    
    49ARTICLE IVREPRESENTATIONS AND WARRANTIES OF THE ESOP
    
    
    49Section 4.1.
    
    Organization
    
    
    49Section 4.2.
    
    Authorization; Enforceability
    
    
    49Section 4.3.
    
    Noncontravention
    
    
    50Section 4.4.
    
    Brokers Fees
    
    
    50Section 4.5.
    
    Company Shares
    
    
    50Section 4.6.
    
    Litigation
    
    
    50ARTICLE VREPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION SUB
    
    
    51Section 5.1.
    
    Organization
    
    
    51Section 5.2.
    
    Authorization
    
    
    51Section 5.3.
    
    Governmental Consents and Approvals; No Conflict or Violation
    
    
    51Section 5.4.
    
    Commitments
    
    
    52Section 5.5.
    
    Compliance with Law
    
    
    52Section 5.6.
    
    No Brokers or Finders
    
    
    52ARTICLE VICOVENANTS
    
    
    53Section 6.1.
    
    Conduct of Business of the Company
    
    
    53Section 6.2.
    
    Access to Information
    
    
    55Section 6.3.
    
    HSR Act Approvals
    
    
    56Section 6.4.
    
    Approvals and Consents
    
    
    57Section 6.5.
    
    Proxy Statement
    
    
    57Section 6.6.
    
    Stockholders Meeting
    
    
    57Section 6.7.
    
    Additional Agreements; Commercially Reasonable Efforts
    
    
    58Section 6.8.
    
    ESOP Matters
    
    
    58Section 6.9.
    
    Public Announcements
    
    
    59
 ii




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##### 



PageSection 6.10.
    
    Notification of Certain Matters
    
    
    60Section 6.11.
    
    No Solicitations
    
    
    60Section 6.12.
    
    Financing Cooperation
    
    
    61Section 6.13.
    
    Indemnification, Exculpation and Insurance
    
    
    61ARTICLE VIICONDITIONS TO CONSUMMATION OF THE MERGER
    
    
    62Section 7.1.
    
    Conditions to Each Partys Obligation to Effect the Merger
    
    
    62Section 7.2.
    
    Conditions to the Obligation of the Company
    
    
    63Section 7.3.
    
    Conditions to the Obligations of Parent and Acquisition Sub
    
    
    64ARTICLE VIIIINDEMNIFICATION
    
    
    66Section 8.1.
    
    Indemnification by the Equity Holders
    
    
    66Section 8.2.
    
    Indemnification by Parent
    
    
    66Section 8.3.
    
    Notice of Claims
    
    
    67Section 8.4.
    
    Third Party Claims
    
    
    67Section 8.5.
    
    Distributions From Escrow
    
    
    68Section 8.6.
    
    Limitations and Requirements
    
    
    68ARTICLE IXTERMINATION; AMENDMENT; WAIVER
    
    
    70Section 9.1.
    
    Termination
    
    
    70Section 9.2.
    
    Effect of Termination
    
    
    71Section 9.3.
    
    Fees and Expenses
    
    
    71Section 9.4.
    
    Amendment
    
    
    72Section 9.5.
    
    Extension; Waiver
    
    
    72ARTICLE XTAX MATTERS
    
    
    72Section 10.1.
    
    Tax Sharing Agreements
    
    
    72Section 10.2.
    
    Transfer Taxes
    
    
    72ARTICLE XIMISCELLANEOUS
    
    
    72Section 11.1.
    
    Entire Agreement; Assignment
    
    
    72Section 11.2.
    
    Validity
    
    
    73Section 11.3.
    
    Notices
    
    
    73Section 11.4.
    
    Governing Law
    
    
    74Section 11.5.
    
    Consent to Jurisdiction
    
    
    74Section 11.6.
    
    WAIVER OF JURY TRIAL
    
    
    75Section 11.7.
    
    Parties in Interest
    
    
    75Section 11.8.
    
    Specific Performance
    
    
    75Section 11.9.
    
    Counterparts
    
    
    75Section 11.10.
    
    Negotiation of Agreement
    
    
    75
 iii




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##### 



SCHEDULES
 Schedule 1.1(b)
    
    Proportionate SharesSchedule 2.8(d)
    
    Treatment of Options, SARs and the WarrantSchedule 3.1
    
    OrganizationSchedule 3.2
    
    SubsidiariesSchedule 3.4
    
    CapitalizationSchedule 3.5
    
    Governmental Consents and ApprovalsSchedule 3.6
    
    LitigationSchedule 3.7
    
    Compliance with LawsSchedule 3.8
    
    No ViolationsSchedule 3.9(a)
    
    Owned Real PropertySchedule 3.9(b)
    
    Leased Real PropertySchedule 3.11(b)
    
    LiabilitiesSchedule 3.11(c)
    
    SEC ReportsSchedule 3.12(c)
    
    Tax ReturnsSchedule 3.12(e)
    
    Tax Sharing AgreementsSchedule 3.12(f)
    
    JurisdictionSchedule 3.13(a)
    
    Employee BenefitsSchedule 3.13(g)
    
    ERISASchedule 3.13(i)
    
    Employee Welfare Benefit PlanSchedule 3.13(l)
    
    Foreign PlansSchedule 3.14
    
    Transactions with AffiliatesSchedule 3.15
    
    Assumptions or Guaranties of IndebtednessSchedule 3.16
    
    Loans by the CompanySchedule 3.17
    
    Absence of Certain ChangesSchedule 3.18(a)
    
    Labor RelationsSchedule 3.18(b)
    
    Employment ContractsSchedule 3.19
    
    InsuranceSchedule 3.21
    
    Material ContractsSchedule 3.22
    
    Environmental MattersSchedule 3.23(a)
    
    Intellectual PropertySchedule 3.23(c)
    
    IP LitigationSchedule 3.23(e)
    
    IP SystemsSchedule 3.24
    
    Government ContractsSchedule 3.25
    
    Compliance re Government Contracts and BidsSchedule 3.26
    
    Internal Controls, Audits and InvestigationsSchedule 3.29
    
    Customs and International TradeSchedule 3.30
    
    Customers and SuppliersSchedule 3.31
    
    WarrantiesSchedule 3.32
    
    Operations of the CompanySchedule 3.36
    
    Brokers FeesSchedule 6.1
    
    Conduct of BusinessSchedule 6.4
    
    Material Approvals and ConsentsSchedule 6.13
    
    Indemnification, Exculpation and InsuranceSchedule 7.3(c)
    
    Company ConsentsSchedule 7.3(f)
    
    Individuals Executing Equity and Incentive AgreementsSchedule 7.3(g)(i)
    
    Individuals Executing Employment Agreements
 iv




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##### 



Schedule 7.3(g)(ii)
    
    Current Employment Agreements to be TerminatedSchedule 7.3(h)(i)
    
    Individuals Executing Change of Control AgreementsSchedule 7.3(h)(ii)
    
    Current Change of Control Agreements to be TerminatedSchedule 7.3(i)
    
    Individuals Executing Non-Solicitation Agreements
 v




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##### 



EXHIBITS
 Exhibit A
    
    Bond Term SheetExhibit B
    
    Credit Agreement AmendmentExhibit C
    
    Escrow AgreementExhibit D
    
    Rollover SecuritiesExhibit E
    
    Equity Term SheetExhibit F
    
    Form of Letter of TransmittalExhibit G
    
    Equity Commitment LettersExhibit H
    
    Form of Change of Control AgreementExhibit I
    
    Form of Employment AgreementExhibit J
    
    Form of Non-Solicitation AgreementExhibit K
    
    ESOP Counsel Opinion
 vi




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##### 



AGREEMENT AND PLAN OF MERGER
 Agreement Company Argo-Tech ESOP Trustee Parent Acquisition Sub
 RECITALS:
    A G R E E M E N T
  ARTICLE I  DEFINITIONS
 Certain Definitions
 Action
 Acquisition Sub
 Agreement




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##### 



Affiliate provided
 Alternative Transaction
 Argo-Tracker Disposition
 Audited Financial Statements
 Basket Section 8.6(a)
 Board
 Bond Term Sheet Exhibit A
 Business Day
 Buyer Indemnitee Section 8.1
 Cap Section 8.6(b)
 Capital Stock
 2




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##### 



Capitalized Lease Obligations
 Cash Merger Consideration minus
 CERCLA
 Certificate Section 2.8(a)(iii)
 Change of Control Obligations Section 7.3(f) Section
7.3(g)
 Claim Section 8.3
 Claim Notice Section 8.3
 Claim Undertaking Section 8.4(a)
 Closing Section 2.3(a)
 Closing Adjustment Statement Section 2.9
 Closing Company Expenses Section 2.9
 Closing Date Section 2.3(a)
 3




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##### 



Closing Dividends/Investments
 Closing Payout Percentage minus
 COBRA
 Code
 Common Stock
 Company
 Company Dividend
 Company Expenses Section 7.1(f) Section 2.8(c)(i) Sections 6.12 6.13(b) 7.1(d)
 Company Group Section 6.11
 Company Intellectual Property Section 3.23(b)
 Company Stock
 4




---



##### 



Company Stock Options Section 2.8(d)(i)
 Contract
 Control
 Costa Mesa Indemnity Agreement Section 3.22(g)
 Court Order
 Credit Agreement
 Credit Agreement Amendment Exhibit B
 Customs & International Trade Laws USA PATRIOT Act
 5




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##### 



Damages Section 8.1
 Default
 Dissenting Shares Section 2.8(a)(iv)
 DGCL Section 2.1
 DOJ Section 6.3
 EBITDA minus
 Effective Time Section 2.2
 Employee Benefit Plan
 Encumbrance
 Environmental Claim
 6




---



##### 



Environmental Laws
 Environmental Permit
 Equity Commitment Letters Section 5.4
 Equity Holders
 Equity Holder Indemnitee Section 8.2
 ERISA
 ERISA Affiliate
 Escrow Account Section 2.10(b)
 Escrow Agent Section 2.10(b)
 Escrow Agreement Exhibit C
 Escrow Amount Section 2.10(b)(v)
 ESOP
 ESOP Financial Advisor
 ESOP Transaction Expenses
 7




---



##### 



Excluded Shares Section 2.8(a)(ii)
 External Investigation Section 3.26
 Fairness Opinion
 Financial Statements
 FTC Section 6.3
 Funded Debt clauses (a) (d)
 GAAP
 Government Bid
 Government Contract
 Governmental Authority Governmental Entity
 8




---



##### 



Hazardous Material
 HSR Act
 Improvements Section 3.9(d)
 Indebtedness clauses (a) (h)
 Indemnified Officers Section 6.13(b)
 Indemnified Party Section 8.3
 Indemnifying Party Section 8.3
 Indemnity Agreements Section 3.22(g)
 Indenture
 Intellectual Property
 9




---



##### 



Interim Financial Statements Most Recent Balance Sheet Section 6.2(b)
 In-the-Money Options
 Knowledge
 Landlord Leases
 Law
 10




---



##### 



Leased Real Property
 Leases
 Material Adverse Effect
 Material Contracts Section 3.21(t)
 Merger Section 2.1
 Merger Certificate Section 2.2
 Merger Consideration
 plus plus plus plus plus minus
 plus
 Merger Fund
 Notes Section 7.3(j)
 Option Exercise Amount
 11




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##### 



Ordinary Course
 Organizational Documents
 Outside Date Section 9.1(b)
 Parent
 Parent Class A Units Section 7.3(q)
 Paying Agent Section 2.8(c)(i)
 Per In-the-Money Option Consideration
 Per SAR Consideration
 Per SERP Award Consideration
 Per Share Common Consideration minus divided by
 Per Share Merger Consideration divided by
 12




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##### 



Per Warrant Share Consideration
 Permits provided however
 Permitted Encumbrances
 Person
 Personal Property
 Preferred Redemption Amount plus
 Preferred Stock
 Preferred Stockholder Bonuses
 13




---



##### 



less
 Proportionate Share Schedule 1.1(b)
 Real Property Section 3.7(c)
 Release
 Required Stockholder Approval Section 2.3(c)
 Rollover Amount
 Rollover Escrow Amount
 Rollover Holder Exhibit
D
 Rollover Securities Exhibit D
 Sarbanes-Oxley Act Section 3.11(d)
 SAR Initial Value
 SAR Plans Section 2.8(d)(i)
 SARs
 SERP Award
 14




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##### 



SERP Plan
 Stock Plans Section 2.8(d)(i)
 Stockholders Agreement
 Stockholders Representative
 Subsidiary
 Superior Proposal
 Surviving Corporation Section 2.1
  Tax or Taxes
 15




---



##### 



Tax Return
 Tracker Technology Dispute Section 8.1
 Transaction Documents
 Transfer Taxes
 Trustee
 TRW Indemnity Agreement Section 3.22(g)
 Unlawful Payment Section 3.28
 Warrant
 Warrant Exercise Amount
 Warrant Shares
 Wire Transfer Instructions Section 2.10(a)
 Interpretation
   16




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##### 



Actions Simultaneous
 ARTICLE II  THE MERGER
 The Merger DGCL Merger Surviving Corporation
 Effective Time Merger Certificate Effective Time)
 Closing of the Merger
 Closing Closing Date Article VII
 17




---



##### 



rd
 Sections 7.2(a) (c) clause (3) clause (3)
 Sections 7.1(c) (g) Sections 7.3(a) Sections 7.1(c) (h) clause (3) clause (3) Required Stockholder Approval
 18




---



##### 



Effects of the Merger
 Organizational Documents
 Board of Directors
 Officers
 Effect of the Merger on the Outstanding Securities of the Company; Exchange
Procedures; and Treatment of Options
 Effect on Capital Stock
 Common Stock of Acquisition Sub
 19




---



##### 



Cancellation of Treasury Stock and Company Stock Owned by Parent or Acquisition Sub Excluded Shares
 Cancellation, Retirement and Conversion of Common Stock Section
2.8(c)(vii) Certificate Section 2.12 Section 8.5 Section 2.12 Section 8.5
 Dissenting Shares Dissenting Shares Section 2.12 Section 8.5 Section 2.12 Section 8.5
 Rollover of Securities 20
       Exhibit E
 Exchange of Certificates
 Paying Agent Paying
Agent Section 2.10(b) Section 2.10(b)
 Exchange Procedures Exhibit F Letter of Transmittal Section
2.12 Section 8.5
 21




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##### 



Section
2.8(c)(ii) Section 2.12 Section 8.5
 No Further Ownership Rights in Common Stock Exchanged for Cash Section 2.8
 Termination of Merger Fund Section 2.8
 No Liability
 Investment of Merger Fund
 Lost Certificates
 Treatment of Options, SARs, SERP Awards and the Warrant
 Stock Plans Company Stock Options
 22




---



##### 



Schedule
2.8(d) SAR Plans SARs Schedule
2.8(d) Schedule 2.8(d)
 Sections 2.10 Section 2.12 Article VIII
  Pre-Closing Determination of Merger Consideration Closing Adjustment Statement Closing Company
Expenses Schedule 1.1(b)
 Wire Transfer Instructions and Payments
 Wire Transfer Instructions Section 2.10 Sections 2.10(b)(ii), 2.10(b)(iv) 2.10(b)(v) 23
       Wire Transfer Instructions
 Payments of Merger Consideration Section
2.11
 minus minus
 minus provided Section 2.10(b)(iv) Section 2.10(b)(ii)
    Escrow Amount Escrow Agent Escrow Account
 24




---



##### 



Payment of Company Expenses Section 2.10(b)
 Withholding Rights; Certain Taxes Article
II
 Distribution of Proceeds from Argo-Tracker Disposition
 Section 6.7(c) Argo-Tracker Proceeds
  Section 2.12(b)
 Excess Proceeds
  Section 2.12(b)
 25




---



##### 



Section
2.12(a) Section 2.12(a) Section 2.12(a)(iii)(A)
 ARTICLE III  REPRESENTATIONS AND WARRANTIES OF THE COMPANY
  Organization Schedule
3.1
 Subsidiaries
 Schedule 3.2 Schedule 3.2
 Schedule 3.2 Schedule 3.2 26
       Schedule 3.2
 Schedule 3.2 Schedule 3.2
  Authorization 27
        Capitalization Schedule 3.4 provided Schedule 3.4 Schedule 3.4 Schedule 3.4 Schedule 3.4 Schedule 3.4
 Governmental Consents and Approvals Schedule
3.5
 Litigation
 Schedule 3.6 28
       Schedule 3.6 Schedule 3.6)
 Schedule 3.6
 Compliance with Laws
 Schedule 3.7 Section 3.7 Section
3.12 Section 3.22 Section 3.13
  No Violations Schedule 3.8
 29




---



##### 



Schedule 3.8
 Property
 Schedule 3.9(a) Owned Real Property Schedule 3.9(a)
 Schedule 3.9(b) Leased Real Property Schedule 3.9(b)
 30




---



##### 



Schedule 3.9(a) Schedule 3.9(b) Real
Property
 Improvements
 Tangible Assets
 Financial Information; Liabilities; SEC Filings
  31




---



##### 



Schedule 3.11(b)
 Schedule 3.11(c) SEC Securities Act Exchange Act Public Reports Schedule 3.11(c) Schedule 3.11(c)
 Sarbanes-Oxley Act
 Taxes
 Tax Returns; Payment of Taxes
 32




---



##### 



Withholding
 Additional Taxes; Past Returns Schedule 3.12(c)
 Statute of Limitations
 Tax sharing Agreements Schedule 3.12(e)
 Miscellaneous
 33




---



##### 



Tax Reserves
 Tax Records
 Pre-Closing Items
      Section 355
 34




---



##### 



Employment Benefits
 Schedule 3.13(a) Schedule 3.13(a)
      Schedule 3.13(g)
 35




---



##### 



Schedule 3.13(i)
   Schedule 3.13(l) Foreign Plan
 36




---



##### 



Transactions with Affiliates Schedule
3.14 Schedule 3.14
 Assumptions or Guaranties of Indebtedness of Other Persons Schedule 3.15
 Loans to Other Persons Schedule 3.16
 Absence of Certain Changes Schedule
3.17
     37




---



##### 



38




---



##### 



Labor Relations
 Schedule 3.18(a)
 39




---



##### 



Schedule 3.18(b)
  Insurance Schedule 3.19 Schedule 3.19
 Books and Records
 Material Contracts Schedule 3.21
 40




---



##### 



41




---



##### 



Schedule
3.21 Section 3.21 Material Contracts
  Environmental Matters Schedule 3.22
   42




---



##### 



TRW Indemnity Agreement Costa Mesa Indemnity Agreement Indemnity Agreements
 Intellectual Property
 Schedule 3.23(a)
 43




---



##### 



Company
Intellectual Property
 Schedule 3.23(c)
  Systems Schedule 3.23(e)
 44




---



##### 



List of Government Contracts, Subcontracts and Bids Schedule
3.24 Schedule 3.24 Schedule 3.24
 Compliance, Performance, Termination and Breach of Government Contracts Schedule 3.25
    45




---



##### 



Internal Controls, Audits and Investigations
  Schedule 3.26 External Investigation
 Debarment, Suspension and Exclusion
   46




---



##### 



Absence Of Unlawful Payments
 Unlawful Payment Section 1.1
  Compliance with Customs & International Trade Laws . Schedule 3.29
    47




---



##### 



Customers and Suppliers Schedule 3.30 Schedule 3.30 Schedule 3.30 Schedule 3.30
 Warranties Schedule 3.31
 Operations of the Company Schedule
3.32
 Company Expenses and Closing Dividends/Investments
 48




---



##### 



Required Vote of Company Stock
 State Takeover Laws
 No Brokers or Finders Schedule 3.36
 ARTICLE IV  REPRESENTATIONS AND WARRANTIES OF THE ESOP
 Article IV
 Organization
 Authorization; Enforceability
 49




---



##### 



Noncontravention
 Brokers Fees
 Company Shares
 Litigation
 50




---



##### 



ARTICLE V  REPRESENTATIONS AND WARRANTIES  OF PARENT AND ACQUISITION SUB
  Organization
 Authorization
 Governmental Consents and Approvals; No Conflict or Violation
  51




---



##### 



clauses (ii) (iii)
 Commitments Exhibit G Equity Commitment Letters Exhibit A
 Compliance with Law
 No Brokers or Finders
 52




---



##### 



ARTICLE VI  COVENANTS
 Conduct of Business of the Company Schedule 6.1 Schedule 6.1
  provided
     53




---



##### 



54




---



##### 



Sections
6.1(a) (u)
 Access to Information
  55




---



##### 



provided
  Section
6.2
 HSR Act Approvals . FTC DOJ
 56




---



##### 



Approvals and Consents Schedule 6.4
 Proxy Statement Section
6.11(c) th
 Stockholders Meeting
 57




---



##### 



Additional Agreements; Commercially Reasonable Efforts
  Stockholders Representative
 provided Section 2.12
 ESOP Matters
 Information Statement
 58




---



##### 



IRS IRS Approval
   Public Announcements
 59




---



##### 



Notification of Certain Matters
 No Solicitations
 Company Group
 60




---



##### 



Section 6.11(a) Section 6.11(a)
  Financing Cooperation Section 7.3(i) Section 7.3(i)
 Indemnification, Exculpation and Insurance
  61




---



##### 



Schedule
6.13
 Indemnified Officers
 Section 6.13
 ARTICLE VII  CONDITIONS TO CONSUMMATION OF THE MERGER
 Conditions to Each Partys Obligation to Effect the Merger
      62




---



##### 



Conditions to the Obligation of the Company
   63




---



##### 



Conditions to the Obligations of Parent and Acquisition Sub
   Schedule
7.3(c)
   Schedule 7.3(f) Exhibit E;
 Schedule 7.3(g)(i)
 64




---



##### 



Exhibit
I Schedule
7.3(g)(ii) Schedule 7.3(g)(ii)
 Schedule 7.3(h)(i) Exhibit H Schedule 7.3(h)(ii) Schedule 7.3(h)(ii)
 Schedule 7.3(i) Exhibit J
 Notes
      Exhibit K
  65




---



##### 



ARTICLE VIII  INDEMNIFICATION
 Indemnification by the Equity Holders Section 8.6 Buyer Indemnitee Buyer
Indemnitees Damages Mizar Tracker Technology Dispute Sections 3.4 3.6 3.12 3.13 3.14 3.23 3.25 3.26 3.27 3.31, 3.33 3.36
 Indemnification by Parent
 66




---



##### 



Equity Holder Indemnitee Equity Holder Indemnitees
 Notice of Claims Article VIII Indemnified Party Indemnifying Party Claim Claim Notice
 Third Party Claims
 Article VIII Section
8.3 Claim Undertaking
  67




---



##### 



Distributions From Escrow
 Article VIII
  Limitations and Requirements
 Section 8.1 Basket provided that Sections 3.4 3.33 Section 8.2
 Section 8.1 Cap Section 8.2
 68




---



##### 



Section 8.6(c) Article VIII Section 8.6(c) Section 8.6(c) Section 8.6(c)
 Article VIII Article VIII
 Article VIII Article VIII Article VIII
  Article VIII
 69




---



##### 



ARTICLE IX  TERMINATION; AMENDMENT; WAIVER
 Termination
  Outside Date provided clause (ii)
 Section 7.2(a) provided
 Section 7.3(a) provided
  provided Section 9.1(f)
 70




---



##### 



Effect of Termination Section 9.1 Section 9.2 Section 6.9 Section 9.3 Section 11.4 Section 11.5 Section
11.6 provided
 Fees and Expenses
  Section 9.1(c) Section 9.1(b)(ii) Fee Parent
Expenses provided Section 9.3(b)
  71




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Amendment
 Extension; Waiver
 ARTICLE X  TAX MATTERS
 Tax Sharing Agreements
 Transfer Taxes
 ARTICLE XI  MISCELLANEOUS
 Entire Agreement; Assignment provided however provided however
 72




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Validity
 Notices
 if to Parent, Acquisition Sub or the
Surviving Corporation:
    
    V.G.A.T. Investors, LLC
c/o Vestar Capital Partners IV, L.P.
245 Park Avenue
New York, NY 10167
Telecopier:(212) 808-4922
Attention: John Woodard, Managing Director
and
Attention: General Counselwith a copy (which shall not constitute
notice to any of Parent, Acquisition Sub
or the Surviving Corporation) to:
    
    Kirkland & Ellis LLP
Citigroup Center
153 East 53rd Street
New York, NY 10022
Telecopier: (212) 446-4900
Attention: Michael Movsovich, Esq.if to the Company or Argo-Tech to:
    
    AT Holdings Corporation
23555 Euclid Avenue
Cleveland, OH 44117
Telecopier:(216) 579-0212
Attention: Michael Lipsomb and Paul R. Keen Esq.
 73




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##### 



with a copy (which shall not constitute
notice to the Company) to:
    
    Jones Day
North Point
901 Lakeside Avenue
Cleveland, OH 44114Telecopier:(216) 579-0212
Attention: Charles W. Hardin, Jr., Esq.If to the ESOP or the ESOP Trustee to:
    
    GREATBANC TRUST COMPANY
1301 West 22nd Street
Suite 800
Oak Brook, IL 60523
Telecopier: (630) 571-0599
Attention: Marilyn M. MarchettiWith a copy (which shall not constitute
notice to the ESOP or ESOP Trustee) to:
    
    Morgan, Lewis & Bockius LLP
77 West Wacker Driver
6th Floor
Chicago, IL 60601
Telecopier: (312) 324-1001
Attention: David Ackerman, Esq.
  Governing Law
 Consent to Jurisdiction
 74




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##### 



clause (x) Section 11.3 clause (x) (y)
 WAIVER OF JURY TRIAL SECTION 11.6
 Parties in Interest Article II Section 6.11
 Specific Performance
 Counterparts
 Negotiation of Agreement
 75




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[Signature Pages Follow]
 76




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##### 



AT HOLDINGS CORPORATIONBy:
    
    /s/ Michael S. LipscombName: Michael S. LipscombTitle: President and CEOARGO-TECH CORPORATIONBy:
    
    /s/ Michael S. LipscombName: Michael S. LipscombTitle: President and CEOGREATBANC TRUST COMPANY, IN ITS CAPACITY AS TRUSTEE
OF THE ARGO-TECH CORPORATION EMPLOYEE STOCK OWNERSHIP
PLAN AND TRUSTBy:
    
    /s/ Marilyn MarchettiName: Marilyn MarchettiTitle: Senior Vice PresidentV.G.A.T. INVESTORS, LLCBy:
    
    /s/ John WoodardName: John WoodardTitle:VAUGHN MERGER SUB, INC.By:
    
    /s/ John WoodardName: John WoodardTitle: