Share Sale and Purchase Agreement relating to Racal Acoustics Global Limited



 EXHIBIT 10.5 
 Share
Sale and Purchase 
 Agreement 
 relating to Racal Acoustics 
 Global Limited 
  
  

					
	 Dated
	 	 21 December 2008
	 	

  
  
 The Sellers (as defined herein) (1) 
 Barclays Bank plc (2) 
 Weston Aerospace Limited (3) 
 Esterline Technologies Corporation
(4) 







 TABLE OF CONTENTS 
  

					
	 INTRODUCTION
	  	1
	 OPERATIVE PROVISIONS
	  	1
	 1          
	  	 Definitions
	  	1
	 2
	  	 Sale and purchase of the Shares
	  	14
	 3
	  	 Consideration
	  	14
	 4
	  	 Condition Precedents
	  	15
	 5
	  	 Position pending Completion
	  	16
	 6
	  	 Completion
	  	16
	 7
	  	 Preparation of Completion Accounts and Consideration Adjustment Statement
	  	17
	 8
	  	 Warranties
	  	18
	 9
	  	 Buyer Warranties
	  	19
	 10
	  	 Buyer’s Undertaking
	  	19
	 11
	  	 Guarantee
	  	20
	 12
	  	 Announcements
	  	21
	 13
	  	 Confidentiality
	  	21
	 14
	  	 Restrictive Covenants
	  	22
	 15
	  	 Entire agreement
	  	24
	 16
	  	 Assignment and transfer
	  	25
	 17
	  	 Costs and expenses
	  	25
	 18
	  	 Interest on late payments
	  	25
	 19
	  	 No set-off
	  	25
	 20
	  	 Waiver
	  	25
	 21
	  	 Variation
	  	26
	 22
	  	 Severance
	  	26
	 23
	  	 Further assurance
	  	26
	 24
	  	 Notices
	  	26
	 25
	  	 Counterparts
	  	28
	 26
	  	 Governing law
	  	28
	 27
	  	 Jurisdiction
	  	28
	 28
	  	 Interpretation
	  	28
	 29
	  	 Rights of third parties
	  	29
	 30
	  	 Warrantors’ Agent
	  	29
	 31
	  	 Effect of Completion
	  	29
	 32
	  	 Provision of information
	  	30
	 33
	  	 Execution
	  	30
	 SCHEDULE 1
	  	30
		  	 Part 1: The Management Sellers
	  	30
		  	 Part 2: ECI
	  	32
		  	 Part 3: Barclays Bank
	  	34
	 SCHEDULE 2
	  	35
		  	 Part 1: Particulars of the Company
	  	35
		  	 Part 2: Particulars of the Subsidiaries
	  	37
	 SCHEDULE 3
	  	44
		  	 Part 1: Sellers’ Obligations
	  	44
		  	 Part 2: Buyer’s Obligations
	  	46
		  	 Part 3: Barclays’ Obligations
	  	47
	 SCHEDULE 4 - The Properties
	  	48
	 SCHEDULE 5 - Warranties
	  	49
		  	 Part 1: Capacity and Authority
	  	49
		  	 Part 1A: Barclays Warranties
	  	50
		  	 Part 1B: Capacity and Authority at Completion
	  	51
		  	 Part 2: General
	  	52
		  	 Part 3: Taxation Warranties
	  	64
	 SCHEDULE 6 - Buyer Warranties
	  	68
	 SCHEDULE 7 - Limitations on Liability
	  	69
	 SCHEDULE 8 - Completion Accounts
	  	76
		  	 Part 1: Accounting Instructions
	  	76
		  	 Part 2: Agreed form of Completion Accounts
	  	83
		  	 Part 3: Components of Working Capital - Components of Working Capital
	  	86









					
		  	 Part 4: Independent Accountants’ terms of reference
	  	89
	 SCHEDULE 9
	  	90
		  	 Part 1: Position pending Completion
	  	90
		  	 Part 2: Material Adverse Change
	  	92
		  	 Part 3: Independent Expert’s terms of reference
	  	94
	 SCHEDULE 10
	  	95
		  	 Part 1: Provisions relating to the Retention
	  	95
		  	 Part 2: Instruction Letter
	  	100
	 APPENDIX 1 - Owned Intellectual Property
	  	105









			
	 DATE
	  	21 December 2008
		
	 PARTIES
	  	

  

	(1)	 THE PERSONS whose names and addresses are set out in Parts 1 and 2 of Schedule 1 (together the “Sellers”); 


  

	 (2)
	 BARCLAYS BANK PLC (Company Number: 1026167) of 2nd Floor, Quay 2, Fountainbridge, Edinburgh EH3 9QG (“Barclays”); 


  

	(3)	 WESTON AEROSPACE LIMITED (Company number: 04740406) whose registered office is at Mitre House, 160 Aldersgate Street, London EC1A 4DD (the “Buyer”); and



  

	 (4)
	 ESTERLINE TECHNOLOGIES CORPORATION whose principal place of business is at City Center Bellevue, 500 108th Avenue NE Suite 1500, Bellevue, WA 98004, USA (the “Guarantor”). 


 INTRODUCTION 
  

	(A)	 The Company was incorporated in England and Wales on 13 June 2005 and is registered under number 05478848 as a private company limited by shares.



  

	(B)	 The Sellers and Barclays have agreed to sell to the Buyer and the Buyer has agreed to purchase the Shares and the Loan Notes for the Consideration and otherwise in the
manner and on and subject to the terms of this Agreement. 


 OPERATIVE PROVISIONS 
  

	1	 Definitions 


 In this
Agreement, except where a different interpretation is necessary in the context, the words and expressions set out below shall have the following meanings: 
  

			
	 A Shares
	 	 73,001 A ordinary shares of £1 each in the capital of the Company held by the Sellers and 2,882 A Ordinary Shares of £1 each in the capital of the Company held by Barclays


		
	 Accounting Instructions
	 	 the instructions regarding the preparation of the Completion Accounts as set out in Part 1 of Schedule 8

		
	 Accounts
	 	 the audited balance sheet as at the Accounts Date, and the audited profit and loss account for the Financial Year ended on the Accounts Date, of the Company and each of the
Subsidiaries (including, in the case of the Company, the audited consolidated balance sheet as at that date and the audited consolidated profit and loss account for that period), a copy of each of which has been supplied to the Buyer and is included
in the Disclosure Documents

		
	 Accounts Date
	 	 31 December 2007


  

 1 









			
	 Accounts Standards
	 	 in relation to the accounts of any body corporate, the applicable requirements of the Companies Acts 1985 and 1989 or the Companies Act 2006, together with accounting principles,
standards and practices which are generally accepted in the United Kingdom, in each case as at the date of the relevant accounts

		
	 Act
	 	 the Companies Act 1985 and the Companies Act 2006

		
	 Actual Amount
	 	 has the meaning given to it in clause 7.2

		
	 Agreed Proportion
	 	 in relation to a Warrantor, the proportion set out opposite that Warrantor’s name in column 3 of the table at paragraph 2.2 of Schedule 7

		
	 this Agreement
	 	 this agreement including the Introduction and the Schedules

		
	 Andrew Charman Trustees
	 	 Andrew Charman and David Payne as trustees of the Andrew Charman 2008 Settlement and any new or additional trustees from time to time of that trust

		
	 Articles
	 	 the articles of association of the Company

		
	 B Shares
	 	 27,000 B ordinary shares of £1 each in the capital of the Company

		
	 Bank Indebtedness
	 	 the amount owing by the Company on the Completion Date to the lenders under or in connection with the facility agreement dated 13 August 2005 (as amended and restated from time to
time) and the mezzanine facility agreement dated 13 August 2005 (as amended and restated from time to time) and to the providers of hedging in relation to the facilities provided under those agreements and including any cancellation costs or penalty
associated with interest rate swap agreements

		
	 Business
	 	 collectively, the businesses of the Company and of each of the Subsidiaries at the date hereof

		
	 Business Day
	 	 a day other than a Saturday, Sunday or public holiday in England and Wales

		
	 Buyer’s Group
	 	 the Buyer, any holding company of the Buyer or any holding company of that company or any other relevant holding company, any subsidiary of the Buyer and any subsidiary of any such
holding company (which shall from Completion include the Group)

		
	 Buyer’s Solicitors
	 	 Taylor Wessing LLP of 5 New Street Square, London EC4A 3TW


  

 2 









					
	 Buyer’s Solicitors Account
	 	 the bank account with the following details:

			
		 	 account name:
	 	 Taylor Wessing LLP Client Account

			
		 	 account number:
	 	 03666328

			
		 	 sort code:
	 	 60-80-08

			
		 	 swift code:
	 	 NWBKGB2L

			
		 	 IBAN code:
	 	 IBAN GB35 NWBK 6080 0803 6663 28

			
		 	 Bank:
	 	 National Westminster Bank, Law Courts, Temple Bar Branch PO Box 10720, 217 Strand, London WC2R 1AL

		
	 Buyer Warranties
	 	 the warranties given by the Buyer in clause 9 and Schedule 6 and each buyer warranty statement shall be a “Buyer Warranty”

		
	 Cash
	 	 the aggregate of:
  
 (i)        all cash balances in hand or credited to any account and with a
financial institution;
  
 (ii)       cheques or other payments lodged but not yet cleared with a financial institution (listed in the agreed form); and
  
 (iii)      any Outstanding Corporation Tax Receivable (save to the
extent included in the Initial Consideration),
  
 (and any interest
accrued on those balances as at the close of business on the Completion Date), but excluding (i) cheques written or paid by any Group Company that have not yet been deducted from the relevant Group Company account and (ii) any advance, payments from
Customers in excess of the value of the work performed

		
	 Claim
	 	 any claim, action, proceeding or demand for breach of Warranty or any other provision of this Agreement or the Tax Deed

		
	 Commercial Due Diligence
 Reports

	 	 the commercial due diligence reports prepared by CSP Associates, Inc. and Roland Berger Strategy Consultants along with their relevant updates and
addendums

		
	 the Company
	 	 Racal Acoustics Global Limited, short particulars of which are set out in Part 1 of Schedule 2

		
	 Company Expenses
	 	 collectively, the amount of the unpaid fees or expenses (other than bonuses) that have been or will be incurred by a Group Company on or prior to the Completion Date
(whether payable before or after Completion) on behalf of any Group Company or the Sellers in connection with the preparation, negotiation and execution of this Agreement including for the avoidance of doubt any costs relating to the Vendor Due
Diligence Reports or otherwise in contemplation of the sale of the Company or the Pre-Completion Reorganisation


  

 3 









			
	 Competing Business
	 	 any business which directly competes with the Business

		
	 Completion
	 	 completion of the sale and purchase of the Shares in accordance with the terms of clause 6

		
	 Completion Accounts
	 	 the accounts to be prepared and agreed by the parties or determined in accordance with Schedule 8 and comprising the Consideration Adjustment Statement, the Working Capital Statement
and the Net Debt Statement

		
	 Completion Accounts Certificate
	 	 the certificate in the form set out in paragraph 8 of Part 1 of Schedule 8

		
	 Completion Date
	 	 the date on which Completion occurs

		
	 Condition Precedents
	 	 means:
  
 (a)      the German Federal Cartel Office having cleared or deemed to have cleared the
acquisition by the Buyer of the Company from the Sellers and Barclays (the “Cartel Clearance”); and
  
 (b)      no Termination Notice having been served, or to the extent served, not having been
resolved in accordance with the provisions of Part 2 of Schedule 9

		
	 Confidential Information
	 	 all technical, financial, commercial and other information relating to or used exclusively by the Business, including without limitation, trade secrets, know-how, inventions, product
information and unpublished information relating to Intellectual Property, object code and source code relating to software, marketing and business plans, projections, current or projected plans or internal affairs of the Group, secret or
confidential information, current and/or prospective suppliers and customers (including any customer or supplier lists) and any other person who has had material dealings with them

		
	 Consideration
	 	 the cash amount to be paid to the Sellers, Barclays or into the Retention Account at Completion in each case pursuant to clause 3.1 as adjusted pursuant to clause
7

		
	 Consideration Adjustment
 Statement
	 	 the statement of adjustments to be prepared pursuant to clause 7.2 in accordance with the provisions of Schedule 8

		
	 Consultants
	 	 those individuals who are providing services to any Group Company under an agreement which is not a contract of employment with the relevant company including, in particular, where the
individual acts as a consultant or is an independent contractor on secondment, and “Consultant” shall mean any one of them

		
	 Conversion Rate
	 	 the spot selling and buying mid-market closing rate for a transaction between the two currencies in question as quoted by the Financial Times on any date on which a conversion rate is
to


  

 4 









			
		 	 be determined in accordance with this Agreement or, if that rate is not quoted on that date, on the first preceding day on which that rate is quoted

		
	 Covenantors
	 	 Geoffrey Eeles, David Payne, David Watton, Terence Buckley, Andrew Charman and Paul Watson

		
	 David Payne Trustees
	 	 David Payne and Paul Watson as trustees of the David Payne 2008 Settlement and any new or additional trustees from time to time of that trust

		
	 David Watton Trustees
	 	 David Watton and Geoffrey Eeles as trustees of the David Watton 2008 Settlement and any new or additional trustees from time to time of that trust

		
	 Debt
	 	 means:
  
 (a)      all monies owing on the Completion Date to Barclays Bank plc and any accrued but
unpaid interest in respect of those monies under or in connection with the facility agreement dated 13 August 2005 (as amended and noted from time to time) and the mezzanine facility agreement dated 13 August 2005 (as amended and restated from time
to time);
  
 (b)      the aggregate amounts (if any) of bank debit balances, bonds, notes, loan stock other than the Loan Notes, debentures or other debt instruments, any overdraft outstanding letters of credit and any
accrued interest on the foregoing;
  
 (c)      all other amounts that would be treated as indebtedness under UK GAAP;
  
 (d)      any Outstanding Corporation Tax Payable (save to the extent included in the Initial
Consideration); and
  
 (e)      any sums owed to HM Revenue & Customs pursuant to withholding tax payable on interest paid or treated as paid pursuant to the Loan Notes, save where such amounts have been included in the
Withholding Tax Payment

		
	 Deferred Shares
	 	 deferred shares of £1 each in the capital of the Company the actual number of which shall be confirmed by the Sellers pursuant to the Statement of Completion
Shareholding

		
	 Determination Date
	 	 the date on which the Completion Accounts are agreed by the parties or determined in accordance with paragraph 6 of Part 1 of Schedule 8

		
	 Directors
	 	 the persons specified as directors of any of the Group Companies in Parts 1 or 2 of Schedule 2 (the expression “Director” meaning any of them)

		
	 Disclosure Documents
	 	 the documents attached to the Disclosure Letter as listed in the schedule annexed to the Disclosure Letter


  

 5 









			
	 Disclosure Letter
	 	 a letter in the agreed form dated on or before the date of this Agreement from the Warrantors to the Buyer, delivered to the Buyer immediately before execution of this Agreement, for
which the Buyer has acknowledged receipt

		
	 ECI
	 	 collectively those limited partnerships set out in Part 2 of Schedule 1 acting by their manager ECI Partners LLP

		
	 Employee Bonus
	 	 save for the Performance Bonus and the Sales Bonus:
  
 (i)        any and all bonuses payable by any Group
Company to any directors, Employees or Consultants pursuant to any bonus scheme relating to the financial performance of any Group Company for all periods ending on or prior to the Completion Date
  
 (ii)       and any bonuses that have been or will be incurred by a Group Company in connection with the preparation, negotiation and execution of this Agreement

		
	 Employees
	 	 any employee, part time employee, temporary employee or home worker of a Group Company including but not limited to those persons (including directors) whose names appear in the list
of employees included in the Disclosure Documents

		
	 Encumbrance
	 	 any interest or equity of any person (including any right to acquire, option or right of pre-emption) or any mortgage, charge, pledge, lien, assignment, hypothecation, security
interest, title retention or any other security agreement or arrangement

		
	 Environment
	 	 air, water, land, building, structures, enclosures or other constructions, flora, fauna, humans and any other living organisms

		
	 Environmental Due Diligence
 Report
	 	 the environmental due diligence report prepared by Enviros

		
	 Environmental Law
	 	 all international, EU, national, federal, state or local laws and all subordinate legislation and regulatory codes of practice concerning the pollution or protection of the Environment
which are or were binding upon any Group Company in the relevant jurisdiction in which that Group Company are or has been operating

		
	 Environmental Licences
	 	 any assessment, authorisation, certificate, consent, licence, permission, permit, ruling, variation, modification, transfer or any other information or approval required by any
Environmental Law or agreement made pursuant to Environmental Law

		
	 Equity Proportion
	 	 the proportion of the aggregate number of A Shares and B Shares held by either a Seller or Barclays following the operation of the ratchet set out in article 24 of the
Articles

		
	 Financial Due Diligence Report
	 	 the financial due diligence and tax report prepared by PricewaterhouseCoopers


  

 6 









			
	 Financial Year
	 	 a financial year as determined in accordance with section 390 of the Companies Act 2006

		
	 Finco
	 	 Racal Acoustics Group Limited

		
	 GAAP
	 	 generally accepted accounting principles in the United Kingdom as set out in all Statements of Standard Accounting Practice, Financial Reporting Standards and Urgent Issues Task Force
Abstracts issued by the UK Accounting Standards Board and extant at the Completion Date and all relevant United Kingdom company law

		
	 Geoffrey Eeles Trustees
	 	 Geoffrey Eeles and David Watton as trustees of the Geoffrey Eeles 2008 Settlement and any new or additional trustees from time to time of that trust

		
	 Group
	 	 the Company and the Subsidiaries

		
	 Group Company
	 	 any member of the Group and “Group Companies” shall be construed accordingly

		
	 Group Intellectual Property
	 	 means all Intellectual Property owned, used or exploited by the Group

		
	 Group Life Assurance Scheme
	 	 means the Racal Acoustics Limited Group Life Assurance Scheme provided by Unum

		
	 Guarantee
	 	 the guarantee given in clause 11.1(a) (and, where applicable, includes the indemnity given in clause 11.1(b))

		
	 Guaranteed Obligations
	 	 has the meaning given in clause 11.1

		
	 ICTA
	 	 the Income and Corporation Taxes Act 1988

		
	 IHTA
	 	 the Inheritance Tax Act 1984

		
	 ITEPA
	 	 the Income Tax (Earnings and Pensions) Act 2003

		
	 Indemnity
	 	 the indemnity set out in clause 8.11

		
	 Independent Accountants
	 	 either:
  
 (a)      an independent firm of chartered accountants of international repute agreed by the
Warrantor’s Agent, ECI and the Buyer; or
  
 (b)      in default of agreement as to the identity of that independent firm within five Business Days of either party notifying the other of its wish to appoint an independent firm, a specific
member of an independent firm of chartered accountants to be nominated on the application of either party by the President for the time being of the Institute of Chartered Accountants in England and Wales

		
	 Independent Expert
	 	 either:
  
 (a)      an independent firm of chartered accountants of international repute agreed by the
Warrantor’s Agent,


  

 7 









			
		 	 ECI and the Buyer; or
  
 (b)      in default of agreement as to the identity of that independent firm within five
Business Days of either party notifying the other of its wish to appoint an independent firm, a specific member of an independent firm of chartered accountants to be nominated on the application of either party by the President for the time being of
the Institute of Chartered Accountants in England and Wales

		
	 Initial Consideration
	 	 has the meaning given to it in clause 3.1 to be calculated in accordance with clause 3.2

		
	 Insolvency Event
	 	 in relation to a person means any of the following events:
  
 (a)      that person ceasing or threatening to cease to carry on
business or being deemed to be unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 (provided that, for the purposes of this agreement, the reference to £750 in section 123(1) of that Act shall be construed as a
reference to £10,000) or admitting that it is unable to pay its debts as they fall due;
  
 (b)      that person giving notice to any of its creditors that it has suspended or is about
to suspend payment of any of its debts or commencing negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness by reason of financial difficulties;
  
 (c)      a
meeting of that person’s creditors being convened or held;
  
 (d)      an arrangement or composition with or for the benefit of its creditors (including a voluntary arrangement as defined in the Insolvency Act 1986) being entered into or
proposed by or in relation to that person;
  
 (e)      a moratorium coming into force in respect of that person in accordance with paragraph 8.1 of Schedule A1 to the Insolvency Act 1986 or that person applying to the court for an interim
order under section 253 of the Insolvency Act 1986;
  
 (f)       a receiver, administrative receiver taking possession of or being appointed over or a mortgagee, chargee or other encumbrancer taking possession of the whole or
any material part of the assets of that person;
  
 (g)      any distress or execution being levied or enforced (and not being discharged or applied to be set aside within seven days) on any asset of that person;
  
 (h)      that person or its directors or the holder of a qualifying floating charge (as defined in Schedule B1 to the


  

 8 









			
		 	 Insolvency Act 1986) giving notice of his, their or its intention to appoint an administrator in accordance with paragraphs
18 or 26 of Schedule B1 to the Insolvency Act 1986;
  
 (i)        that person or its directors or any of its creditors or the holder of a qualifying floating charge (as defined in Schedule B1 to the Insolvency Act 1986)
making an application to the court for the appointment of an administrator;
  
 (j)        an administrator being appointed of that person under paragraphs 14 or
22 of Schedule B1 to the Insolvency Act 1986 or otherwise;
  
 (k)      a petition being presented (and not being discharged within 14 days) or a resolution being passed or an order being made for the administration or the winding-up,
bankruptcy or dissolution of that person or that person being struck off the register of companies; or
  
 (l)        the happening in relation to that person of an event analogous to any of
the above in any jurisdiction

		
	 Instruction Letter
	 	 a letter from the Buyer and Warrantors’ Agent and ECI on behalf of the Sellers and Barclays to the Buyer’s Solicitors and Sellers’ Solicitors relating to the Retention
in agreed form a draft of which is set out in Part 2 of Schedule 10

		
	 Insurance Due Diligence Report
	 	 the insurance due diligence report prepared by Marsh Limited

		
	 Intellectual Property
	 	 patents, trade marks, service marks, registered designs, trade names, business names, domain names, rights in designs, copyright, computer software and database rights, rights in
know-how and other intellectual property rights whether registered or unregistered and including applications for the grant of any of the foregoing and all rights or forms of protection having equivalent or similar effect anywhere in the
world

		
	 Investor Loan Note Instrument
	 	 the loan note instrument constituting £13,947,000 10% fixed rate unsecured loan notes due 2015 and payment in kind notes of Finco dated 13 August 2005, as amended on 9 September
2005

		
	 Investor Loan Notes
	 	 unsecured loan notes issued by Finco pursuant to the Investor Loan Note Instrument

		
	 IPR Agreements
	 	 means all agreements, contracts and permissions which relate to any Intellectual Property used by the Group, including: (a) those under which third parties permit use of Intellectual
property by a Group Company; (b) those pursuant to which the Group permits a third party to use any Owned Intellectual Property; and (c) all confidentiality and non-disclosure agreements relating to know-how or other confidential information
relating to any product which is being, or has during the last three years, been supplied or offered for supply by any Group Company


  

 9 









			
	 IT Systems
	 	 means the information and communications technologies used by the Group in relation to the Business, including all computer software, firmware, hardware, equipment, ancillary equipment
(including telecommunications, network and internet-related equipment) and data owned or used by the Group Companies and stored in electronic form

		
	 Key Client
	 	 each of the Ministry of Defence, Thales Holland, Canadian Department of National Defense (Public Works Government Services Contract and Department of National Defense), Bharat
Electronics, Eylex, Thales Avionics, Northrop Grumman, SPAWAR (US Marine Corp), Gentex Thales Communications Inc, BOWMAN & Tactical Communications & Information IPT, Simex Equipment, Inc., BAE Systems (Operations) Ltd, BAE Systems, Babcock
Support Services Limited, General Dynamics UK Ltd, Television Equipment Associates

		
	 Key Contracts
	 	 contracts in force at any time in the last three years between a Group Company on the one hand and either a Substantial Supplier or Key Client on the other hand

		
	 Key Employees
	 	 those Employees earning in excess of £50,000 per annum at the Completion Date and each of Andrew Charman, David Moulton, David Payne, Duncan Skinner and Gareth
Vickers

		
	 Loan Notes
	 	 the Investor Loan Notes, the RBS Loan Notes and the Other Management Loan Notes

		
	 Management Accounts
	 	 the management accounts of the Group Companies for the period of ten months from the Accounts Date, copies of which are included in the Disclosure Documents

		
	 Michael Derbyshire Trustees
	 	 Michael Derbyshire and James Green as trustees of the Michael Derbyshire 2008 Settlement and any new or additional trustees from time to time of that trust

		
	 Net Debt
	 	 Cash less Debt

		
	 Net Debt Statement
	 	 the statement of Net Debt to be prepared in accordance with Schedule 8

		
	 Net Debt Target
	 	 the Bank Indebtedness1

		
	 Non-Disclosable Information
	 	 all information which relates to the negotiations relating to and the terms of this Agreement and the commercial or financial arrangements of any party

		
	 Other Management Loan Notes
	 	 unsecured loan notes issued by Finco pursuant to the Other Management Loan Note Instrument

		
	 Other Management Loan Note
 Instrument
	 	 the loan note instrument constituting £1,368,517 5% fixed rate unsecured loan notes due 2015 of Finco dated 13 August 2005


  
 1 Bank Indebtedness to be a negative figure. 
  

 10 









			
	 Outstanding Corporation Tax
 Payable
	 	 the amount of any corporation tax payable by a Group Company to a Tax Authority as at the Completion Date (excluding any deferred tax) save to the extent that such amount has been
taken into account in determining the Outstanding Corporation Tax Receivable

		
	 Outstanding Corporation Tax
 Receivable
	 	 the amount of any corporation tax that has been paid in advance or overpaid by a Group Company to a Tax Authority as at the Completion Date (excluding any deferred tax) save to the
extent that such amount has been taken into account in determining the Outstanding Corporation Tax Payable

		
	 Owned Intellectual Property
	 	 all Intellectual Property owned by any Group Company including the Intellectual Property as set out in [Appendix 1 in the agreed form

		
	 Paul Watson Trustees
	 	 Paul Watson and Andrew Charman as Trustees of the Paul Watson 2008 Settlement and any new or additional trustees from time to time of the trust in respect of which such Trustee Sellers
are entering into this Agreement as trustee

		
	 Pension Schemes
	 	 means the money purchase group personal pension scheme with Friends Provident, the stakeholder pension scheme designated with Friends Provident and the Group Life Assurance
Scheme

		
	 Pensionable Employee
	 	 a director or Employee or former director or former employee of any of the Group Companies

		
	 Performance Bonus
	 	 means the performance bonus of £575,000 (including employer’s and employee’s national insurance contributions and PAYE) by the Group to certain employees pursuant to
the Group’s annual operational bonus scheme

		
	 Period
	 	 36 months from Completion in relation to Geoffrey Eeles, Terence Buckley and David Watton and 18 months from Completion for Andrew Charman, Paul Watson and David
Payne

		
	 Pre-Completion Reorganisation
	 	 the pre-completion reorganisation of the Group comprising the establishment of Rag Newco Limited as a wholly-owned subsidiary of the Company, the acquisition by Rag Newco Limited of
Racal Acoustics Group Limited the reduction of capital of Rag Newco Limited or actions to be carried out in accordance with, and as set out in more detail in, the PricewaterhouseCoopers steps paper disclosed at tab 18.1 of the Disclosure
Documents

		
	 Properties
	 	 the leasehold properties short particulars of which appear in Schedule 4 and references to “the Properties” shall extend to any part or parts thereof

		
	 Racal Pension Schemes
	 	 the Racal Group Executive Pension Plan, the Racal Group Staff Plan and Life Assurance Scheme, the Racal Group Executive Manager and Senior Manager Pension Scheme and the Racal Group
Retirement Benefit Scheme


  

 11 









					
	 RBS Loan Note Instrument
	 	 the loan note instrument constituting £8,000,000 10% fixed rate unsecured loan notes due 2015 and payment in kind notes of Finco dated 13 August
2005

		
	 RBS Loan Notes
	 	 unsecured loan notes issued by Finco pursuant to the RBS Loan Note Instrument

		
	 Restricted Area
	 	 United Kingdom, the Republic of Ireland, France, Germany, Sweden, USA and Canada

		
	 Retention Account
	 	 has the meaning given to it in Schedule 10

		
	 Sanne Trust
	 	 Sanne Trust Company Limited as trustee of Racal Acoustics Global employee benefit trust

		
	 Sales Bonus
	 	 means the sum of £300,000 (including employer’s and employee’s national insurance contributions and PAYE) payable to certain employees as exit sales bonuses


		
	 Sellers’ Solicitors
	 	 SJ Berwin LLP of 10 Queen Street Place, London EC4R 1BE

		
	 Sellers’ Solicitors’ Account
	 	 the bank account with the following details:

			
		 	 account name:
	 	 SJ Berwin LLP Client Account

			
		 	 account number:
	 	 10644994

			
		 	 sort code:
	 	 20-36-47

			
		 	 swift code:
	 	 BARCGB22

			
		 	 IBAN code:
	 	 GB33 BARC 2036 4710 6449 94

			
		 	 Bank:
	 	 Barclays Bank plc, 1 Churchill Place, London E14 5HP

		
	 Shares
	 	 the A Shares, the B Shares and the Deferred Shares to be issued pursuant to the ratchet in articles 24 of the Articles

		
	 Statement of Completion
 Shareholding
	 	 the statement of the number of A Shares, B Shares and Deferred Shares held by each shareholder following the operation of the ratchet in article 24 of the Articles and each
Seller’s and Barclays’ equity proportion

		
	 Stock Take Schedule
	 	 the stock take schedule to be prepared in accordance with Schedule 8

		
	 Subsidiaries
	 	 those companies or other persons (whether or not registered in the United Kingdom) short particulars of which appear in Part 2 of Schedule 2 and the expression
“Subsidiary” shall mean any one of the Subsidiaries


  

 12 









			
	 Substantial Supplier
	 	 each of Sanmina, Hi Tech Mouldings Limited, Minnesota Wire & Cable Co, ACW Technology Limited, Amphenol Limited, Ray Service S.R.O., Euro Technical Services London Limited,
Sterling Springs Limited, Panbury Electronics Limited, General Electronics Services Limited, S.M. Alexander (Plastics) Limited, AWS Electronics Limited, Jaltek Systems Limited, Jarvis Manufacturing Co and Kenard Eng

		
	 Target Amount
	 	 has the meaning given to it in clause 7.2

		
	 Taxation
	 	 has the meaning given to it in the Tax Deed

		
	 Tax Authority
	 	 has the meaning given to it in the Tax Deed

		
	 Tax Deed
	 	 the tax deed in the agreed form

		
	 Tax Warranties
	 	 the tax warranties set out in Part 3 of Schedule 5 to this Agreement

		
	 TCGA
	 	 the Taxation of Chargeable Gains Act 1992

		
	 Terence Buckley Trustees
	 	 Terence Buckley and Geoffrey Eeles as trustees of the Terence Buckley 2008 Settlement and any new or additional trustees from time to time of that trust

		
	 Trustee Sellers
	 	 the Terence Buckley Trustees, the Andrew Charman Trustees, the Michael Derbyshire Trustees, the Geoffrey Eeles Trustees, the David Payne Trustees, the Paul Watson Trustees and the
David Watton Trustees

		
	 TUPE
	 	 the Transfer of Undertakings (Protection of Employment) Regulations 2006

		
	 VAT
	 	 value added tax as provided for in the VATA, and any tax imposed in substitution for it, goods and services tax and any other equivalent tax in any other
jurisdiction

		
	 VATA
	 	 the Value Added Tax Act 1994

		
	 Vendor Due Diligence Reports
	 	 the Financial Due Diligence Report, the Commercial Due Diligence Reports, the Environmental Due Diligence Report and the Insurance Due Diligence Report

		
	 Warranties
	 	 the warranties given by the Sellers and the Warrantors in clause 8 and Part 1 of Schedule 5 (in the case of all of the Sellers) and Parts 2 and 3 of Schedule 5 (in the case of the
Warrantors) and each warranty statement shall be a “Warranty”

		
	 Warrantors’ Agent
	 	 Geoffrey Eeles, Terence Buckley and David Watton appointed in accordance with clause 30

		
	 Warrantors
	 	 each of the Terence Buckley Trustees, the Andrew Charman Trustees, the Geoffrey Eeles Trustees, the David Payne Trustees, the Paul Watson Trustees and the David Watton
Trustees


  

 13 









			
	 Warranty Claim
	 	 any claim for breach of the Warranties given by the Warrantors in Parts 2 (save for paragraphs 1.1 to 1.4 and 2.1 to 2.8 of Part 2) and 3 of Schedule 5

		
	 Withholding Tax Payment
	 	 the sum owed to HMRC by Finco pursuant to withholding tax payable on interest paid or treated as paid pursuant to the Loan Notes which is outstanding at Completion (if
any)

		
	 Working Capital
	 	 the sum of the following line items derived from the Completion Accounts in accordance with Schedule 8:
  
 (a)      “accounts receivable” or “trade debtors”;
  
 (b)      plus “inventories” or “stock”;
  
 (c)      plus “prepaid expenses and other current assets”;
  
 (d)      minus “accounts payable” or “trade creditors”;
  
 (e)      minus “accrued liabilities”; and
  
 (f)       minus “other current liabilities”

		
	 Working Capital Statement
	 	 the statement of Working Capital to be prepared in accordance with the provisions of Schedule 8

		
	 Working Capital Target
	 	 £5,200,000


  

	2	 Sale and purchase of the Shares 


  

	2.1	 Subject to clause 4.1, each of the Sellers shall sell with full title guarantee on and with effect from Completion, and the Buyer shall purchase all of the Shares and Loan
Notes held by him together with all rights attaching to them at Completion and free from all Encumbrances. 


  

	2.2	 Subject to clause 4.1, Barclays shall sell with full title guarantee on and with effect from Completion, and the Buyer shall purchase the A Shares set out opposite
Barclay’s name in Part 3 of Schedule 1 together with all rights attaching to them at Completion and free from all Encumbrances. 


  

	2.3	 The Buyer shall not be obliged to complete the purchase of any of the Shares or Loan Notes unless the purchase of all the Shares and Loan Notes is completed simultaneously
in accordance with this Agreement. 


  

	2.4	 The Sellers and Barclays hereby waive any and all rights of pre-emption over the Shares and Loan Notes conferred either by the articles of association or other
constitutional documents of the Company or any other agreement relating to the Shares or Loan Notes or otherwise. 


  

	2.5	 The Shares and the Loan Notes shall be sold with all rights to dividends and other distributions declared on or after the date of Completion in respect of the Shares or
the Loan Notes and all other rights and advantages belonging to or accruing on the Shares or the Loan Notes (including any accrued but unpaid interest) on or after that date. 


  

	3	 Consideration 


  

	3.1	 In consideration of the sale of the Shares and Loan Notes in accordance with the terms of this Agreement, the Buyer shall pay to the Sellers and Barclays the sum
calculated in accordance with clause 3.2 (the “Initial Consideration”) as adjusted pursuant to clause 7 (the “Consideration”). 


  

 14 









	3.2	 The Initial Consideration referred to in clause 3.1 above shall be the sum determined in accordance with the following formula: 


 Initial Consideration = A - B - C - D + E 
 Where: 
  

	 	A	 means £115,000,000; 


  

	 	B	 means the Bank Indebtedness including any accrued but unpaid interest on the same; 


  

	 	C	 means the Withholding Tax Payment (if any); 


  

	 	D	 means the aggregate amount of the Buyer’s and the Seller’s best estimate of the Outstanding Corporation Tax Payable (which shall be expressed as a positive
figure) and the Buyer’s and Seller’s best estimate of the Outstanding Corporation Tax Receivable (which shall be expressed as a negative figure); and 


  

	 	E	 means the aggregate amount of all cash balances in hand or credited to any account or cheques or other payments lodged but not yet cleared as shown on the bank account
statement of each Group Company at close of business on the day immediately prior to Completion. 


  

	3.3	 The Initial Consideration shall be satisfied by the following payments by the Buyer: 


  

	 	(a)	 firstly, the payment by the Buyer of £5,000,000 into the Retention Account on Completion to be held in accordance with the provisions of Schedule 10;



  

	 	(b)	 secondly, the payment in consideration for the Loan Notes by the Buyer to the Sellers of the amount of the Loan Notes outstanding at the Completion Date together with any
accrued interest thereon to the Seller holding those Loan Notes, the principal amounts of such Loan Notes together with interest as at 31 December 2008 being set out opposite the names of each Seller in column 4 of the table in Part 1 of
Schedule 1 in the case of the Sellers other than ECI and in columns 4, 5 and (to the extent relevant) 6 of the table in Part 2 of Schedule 1 in the case of ECI; and 


  

	 	(c)	 thirdly, the payment by the Buyer to the Sellers and Barclays of the balance of the Initial Consideration so that each Seller and Barclays receives his Equity Proportion
of that amount, save that in the case of Barclays, any outstanding amounts owing to the Company for the subscription of the Shares held by Barclays (being a maximum amount of £2,882) shall be retained by the Buyer.



  

	3.4	 The Initial Consideration is based on the assumption that as at the close of business on the Completion Date: 


  

	 	(a)	 the estimated Working Capital is equal to the Working Capital Target; and 


  

	 	(b)	 the estimated Net Debt is equal to the Net Debt Target. 


  

	3.5	 Any payment made by the Sellers to the Buyer under or in respect of any breach of this Agreement (including, without limitation, in respect of any claim for breach of the
Warranties or any indemnity contained in this Agreement) shall be and shall be deemed to be a reduction in the price paid for the Shares and Loan Notes under this Agreement to the extent legally possible. 


  

	4	 Condition Precedents 


  

	4.1	 Completion is conditional upon the satisfaction or waiver of the Condition Precedents. 


  

 15 









	4.2	 The Buyer and the Sellers shall use all reasonable endeavours to fulfil or procure the fulfilment of the Cartel Clearance as soon as possible including, without
limitation, by the Buyer properly making the relevant notification to the German Federal Cartel Office on or prior to 23 December 2008 (if it has not done so already), and the Buyer will notify the Sellers in writing as soon as reasonably
practicable upon satisfaction of the Cartel Clearance. The Buyer may at any time waive satisfaction of the Cartel Clearance by written notice to the Sellers upon notice from the German Federal Cartel Office that the transaction is not subject to
German merger control. 


  

	4.3	 If the Condition Precedents are not satisfied or waived on or before 28 February 2009, either ECI and Geoffrey Eeles on behalf of the Sellers or the Buyer may, in its
or their sole discretion, terminate this Agreement by notice in writing to the other parties. 


  

	4.4	 If this Agreement is terminated in accordance with clause 4.3 above all obligations of the parties under this Agreement shall end except clauses 1, 15, 16, 17.1, 18, 25,
27, 28, 29, 30, 31 and 33 but (for the avoidance of doubt) all rights and liabilities which have accrued before termination shall continue to exist. 


  

	4.5	 For the avoidance of doubt, a party’s right to terminate this Agreement in accordance with clause 4.3 is not exclusive of any rights, power and remedies provided by
law. 


  

	5	 Position pending Completion 


  

	5.1	 Each of the Covenantors hereby severally undertakes to the Buyer to comply with the provisions of paragraphs 1, 2, 3 and 4 of Part 1 of Schedule 9 and each of the Sellers
hereby severally and in respect of itself or himself only and not in relation to any other Seller and Barclays severally (and in respect of its Shares only) undertakes to the Buyer to comply with the provisions of paragraph 3 of Part 1 of Schedule 9
in the period between the date of this Agreement and Completion. 


  

	5.2	 The Buyer agrees that, notwithstanding the undertakings set out in Schedule 9, in the period between the date of this Agreement and the Completion Date any or all of the
following may occur: 


  

	 	(a)	 those sellers who are individuals may transfer some or all of their Shares and Loan Notes to the Trustee Sellers; 


  

	 	(b)	 the payment out of directors, management or other fees to ECI or the payment of any expenses of any director appointed by ECI; 


  

	 	(c)	 the board of the Company or relevant Group Company may communicate with the Sanne Trust, including making any recommendation to the Sanne Trust as to the appointment,
distribution or allocation of any funds or assets held by the Sanne Trust, at any time prior to Completion; and 


  

	 	(d)	 the ratchet as set out in article 24 of the Articles shall operate. 


  

	6	 Completion 


  

	6.1	 Completion shall take place at the offices of the Sellers’ Solicitors on 14 January 2008 or, if the Cartel Clearance has not been satisfied by that date or a
Termination Notice has been served in accordance with Part 2 of Schedule 9, on the later of the third Business Day following notification of the satisfaction of the Cartel Clearance or the resolution of the matters disputed in the Termination Notice
(unless the Buyer has rescinded the Agreement) or on such other date as the parties may agree in writing. 


  

	6.2	 The Buyer shall not be obliged to complete the sale and purchase of the Shares or Loan Notes unless all of the requirements of clause 6 and Schedule 3 have been 



  

 16 









	 	 
complied with by the Sellers in the case of the Sellers’ obligations in Part 1 of Schedule 3 and by Barclays in the case of Barclays’ obligations in Part 3
of Schedule 3. 


  

	6.3	 The Sellers and Barclays shall not be obliged to complete the sale and purchase of the Shares or Loan Notes unless all of the requirements of clause 6 and Schedule 3 have
been complied with by the Buyer in the case of the Buyer’s obligations in Part 2 of Schedule 3. 


  

	6.4	 Each of the Sellers hereby confirms that the Sellers’ Solicitors are irrevocably authorised by each of the Sellers to receive payment of the Consideration on the
Sellers’ behalf and the receipt by the Sellers’ Solicitors shall be a sufficient discharge for the Buyer, who shall not be concerned to see the application thereof. 


  

	6.5	 Barclays hereby confirms that Dickson Minto are irrevocably authorised by Barclays to receive payment of the relevant part of the Consideration on Barclays’ behalf
and the receipt by Dickson Minto shall be a sufficient discharge for the Buyer, who shall not be concerned to see the application thereof. 


  

	7	 Preparation of Completion Accounts and Consideration Adjustment Statement 


  

	7.1	 The Completion Accounts shall be prepared in accordance with Schedule 8. 


  

	7.2	 Within three Business Days after the Determination Date, a payment comprising the net amount of the following adjustments shall be made: 


  

	 	(a)	 if the aggregate of the Working Capital (as extracted from the Working Capital Statement) and the Net Debt (as extracted from the Net Debt Statement) (the “Actual
Amount”) is greater than the aggregate of the Working Capital Target and the Net Debt Target (the “Target Amount”), the Buyer shall pay, as an increase in the Consideration, to the Sellers and Barclays (so that Barclays receives its
Equity Proportion of that amount ) the amount of the difference between the Actual Amount and the Target Amount; 


  

	 	(b)	 if the Actual Amount is less than the Target Amount the Sellers and Barclays shall pay as a reduction in the Consideration to the Buyer the amount of the difference
between the Actual Amount and the Target Amount (so that each of the Sellers and Barclays shall (as a several obligation) pay to the Buyer their Equity Proportion of that amount). 


 Any adjustment to the Consideration determined in accordance with clause 7.2 shall be set out in the Consideration Adjustment Statement (as that
statement is agreed or determined in accordance with Schedule 8). 
  

	7.3	 The sole purpose of the estimates set out in clause 3.4 is to serve as the basis for calculating the adjustments to be made pursuant to clause 7.2. The Sellers have no
liability in relation to the accuracy or otherwise of those estimates. 


  

	7.4	 No adjustment shall be made to the Consideration and no payment shall be required if the overall adjustment otherwise required under clause 7.2 (whether up or down) would
be less than £50,000. 


  

	7.5	 The maximum adjustment to the Consideration and the maximum downward payment required under clause 7.2 in favour of the Buyer shall be £2,000,000 plus the amount
standing to the credit of the Retention Account and in the event that the adjustment to the Consideration would, but for the effect of this clause 7.5 be greater than £2,000,000 plus the amount standing to the credit of the Retention Account,
the adjustment shall be £2,000,000 plus the amount standing to the credit of the Retention Account provided always that the maximum aggregate amount payable by the Sellers and Barclays other than from the Retention Account shall not exceed
£2,000,000. For the 



  

 17 









	 	 
avoidance of doubt, the maximum upward adjustment to the Consideration and the maximum payment by the Buyer required under clause 7.2 in favour of the Sellers and
Barclays shall be capped at £7,000,000. 


  

	7.6	 Any payment made by the Buyer pursuant to clause 7.2 shall be paid to the Sellers’ Solicitors Account (on behalf of the Sellers) and to Barclays (so that Barclays
receives its Equity Proportion of that amount) and any payment made by the Sellers or Barclays pursuant to clause 7.2 shall be paid to the Buyer’s Solicitors Account in each case in cash by electronic transfer in immediately available funds
without set-off, counterclaim, withholding or other deduction. 


  

	8	 Warranties 


  

	8.1	 Each of the Sellers severally warrants at the date hereof to the Buyer in relation to itself or himself only and not in relation to any other Seller in the terms of the
Warranties set out in Part 1 of Schedule 5 subject to the exclusions, limitations and qualifications set out in this clause 8 and Schedule 7. 


  

	8.2	 Each of the Sellers at the date of Completion severally warrants to the Buyer in relation to itself or himself only and not in relation to any other Seller in the terms of
the Warranties set out in Part 1B of Schedule 5 subject to the exclusions, limitations and qualification set out in this clause 8 and Schedule 7. 


  

	8.3	 Each of the Warrantors severally and proportionately, in the Agreed Proportions, warrants, in relation to himself only, to the Buyer in the terms of the Warranties in
Parts 2 and 3 of Schedule 5 subject to: 


  

	 	(a)	 any matter fairly disclosed (with sufficient details to identify the nature and scope of the matter disclosed and the warranty or warranties to which it relates) in the
Disclosure Letter, the Disclosure Documents or provided for under the terms of this Agreement; and 


  

	 	(b)	 the exclusions, limitations and qualifications set out in this clause 8 and Schedule 7. 


  

	8.4	 Where any Warranty is qualified by the expression, “so far as the Warrantors are aware” or words having similar effect, such awareness shall be confined to the
actual knowledge of the Warrantors having made reasonable enquiry into the matter and of each other and, in the case of the Warranties contained in paragraphs 7 and 8 of Part 2 of Schedule 5 (to the extent that any Warranty Claim relates to or is in
connection with any matter concerning the Accounts or the Management Accounts), Jane Yates and Sian Steele at PwC. 


  

	8.5	 The Sellers acknowledge that the Buyer has entered into the Agreement in reliance on the accuracy of the Warranties. 


  

	8.6	 Each Warranty shall be construed as an independent Warranty and shall not be limited by reference or to inference from any other Warranty or term of this Agreement.



  

	8.7	 The Buyer acknowledges that it does not rely on and has not been induced to enter into this Agreement on the basis of any warranties, representations, covenants,
undertakings, indemnities or other statements whatsoever, other than those expressly set out in this Agreement. 


  

	8.8	 Save for fraud or fraudulent misrepresentation, each Seller undertakes to the Buyer and to each Group Company that it will waive any right which it may have and not make
any claim in respect of any misrepresentation, inaccuracy or omission in or from any information or advice supplied by a Group Company or its officers, Employees, consultants or advisers in connection with the entering into of this agreement, the
giving of the Warranties and the preparation of the Disclosure Letter. 


  

 18 









	8.9	 The sole remedy of the Buyer for any breach of any of the Warranties by the Sellers or a breach by Barclays of the warranties given by it pursuant to clause 8.12 shall be
an action for damages. Subject to Part 2 of Schedule 9, the Buyer shall not be entitled to rescind or terminate this Agreement in any circumstances whatsoever, (save that for the avoidance of doubt nothing in this Agreement shall be read or
construed as excluding any liability or remedy in respect of fraud or fraudulent misrepresentation). 


  

	8.10	 Subject to paragraph 14 of Schedule 7, the rights and remedies of the Buyer in respect of any breach of this Agreement shall not be affected by the investigations made by
or on behalf of the Buyer into the affairs of any Group Company or actual, implied or constructive knowledge on the part of the Buyer or its advisers except where the Buyer has given a specific waiver or release and except as otherwise provided in
this Agreement or the Disclosure Letter. 


  

	8.11	 The Warrantors hereby indemnify and hold the Buyer harmless from and against all fines, losses, liabilities, penalties or charges actually levied against the Group by the
U.S. Department of State and any other reasonable cost of recovery as a direct result of the Group’s violations of the International Traffic in Arms Regulations as amended. The relevant exclusions, limitations and qualifications set out in
Schedule 7 shall apply to this Indemnity save that the Buyer’s sole recourse in respect of any claim under this Indemnity shall be a Relevant Claim against the Retention Account. 


  

	8.12	 Barclays severally warrants to the Buyer in the terms of the warranties set out in Part 1A of Schedule 5 (the “Barclays Warranties”) and, for the avoidance of
doubt, grants no other warranties to the Buyer under the Agreement, Barclays acknowledges that the Buyer has entered into the Agreement in reliance on the accuracy of the Barclays Warranties. The maximum aggregate liability of Barclays in respect of
all claims for breach of any Barclays Warranty or any other provision of this Agreement shall be the amount of the Consideration received by Barclays. The liability of Barclays in respect of all claims for breach of any Barclays Warranty or any
other provision of this Agreement shall cease 18 months after the date of Completion. 


  

	9	 Buyer Warranties 


  

	9.1	 The Buyer warrants to the Sellers and Barclays in the terms of the Buyer Warranties in Schedule 6. 


  

	9.2	 The Buyer acknowledges that the Sellers and Barclays have entered into this Agreement in reliance on the Buyer Warranties. 


  

	10	 Buyer’s Undertaking 


  

	10.1	 The Buyer hereby covenants with ECI to pay to ECI by way of adjustment to the consideration for the sale of the Shares, an amount equal to: 



 

	 	(a)	 any Taxation for which ECI becomes liable by virtue of the operation of sections 767A and 767B ICTA in circumstances where the taxpayer company (as referred to in section
767A(1)) is one of the Group Companies; and 


  

	 	(b)	 any Taxation for which ECI becomes liable by virtue of the operation of section 767AA ICTA in circumstances where the transferred company (as referred to in section
767AA(1)(a)) is one of the Group Companies; 


 unless and to the extent that: 
  

	 	(i)	 one of the Group Companies or the Buyer discharges or has discharged such Taxation by direct payment to the relevant Tax Authority and the relevant Tax 



  

 19 









	 	 
Authority confirms that such payment removes, discharges or otherwise eliminates the liability of ECI; 


  

	 	(ii)	 an amount in respect of such Tax Liability has previously been paid to ECI; 


  

	 	(iii)	 such Tax Liability has been recovered under section 767B(2) ICTA or any other relevant statutory provision, and ECI undertakes to ensure and procure that no such recovery
is sought under clause 10.1 of this Agreement to the extent that payment has been made in respect of the Tax Liability; or 


  

	 	(iv)	 such Tax Liability is or could be subject to a valid claim by the Buyer under the Tax Deed and in respect of which the Warrantors have not previously made payment.



  

	10.2	 The covenant contained in clause 10.1 shall extend to the reasonable costs and expenses incurred by ECI in connection with such Tax or a claim under clause 10.1.



  

	10.3	 The maximum Buyer’s liability under this clause 10.1 and clause 12.3 of the Tax Deed shall in aggregate be limited to the amount of 50% of the Initial Consideration
received by the Covenantors. 


  

	10.4	 Clauses 7 (Deductions from Payments), 6 (Recovery from Third Parties) and 8 (Due Date for Payment) in the Tax Deed shall apply to the covenant contained in clause 10 as
they apply to the covenants contained in clause 2 of the Tax Deed, replacing references to the “Covenantors” to the “Buyer” and replacing references to the “Buyer” to “ECI” and making any other necessary
modifications. 


  

	11	 Guarantee 


  

	11.1	 In consideration of the Sellers and Barclays entering into this Agreement, the Guarantor irrevocably and unconditionally: 


  

	 	(a)	 guarantees to the Sellers and Barclays the due and punctual performance and discharge by the Buyer of all its obligations and liabilities (including without limitation the
obligation to pay the Initial Consideration, to pay the amount payable to the Sellers pursuant to clause 17.2 and to pay any other monies) under this Agreement and all documents to be executed pursuant to this Agreement (together, the
“Guaranteed Obligations”) and agrees to pay on demand from time to time each sum which the Buyer is liable to pay under this Agreement and all documents to be executed pursuant to this Agreement; and 


  

	 	(b)	 agrees, as an additional and independent obligation, that if any of the Guaranteed Obligations are not recoverable from the Guarantor under the guarantee in clause 11.1(a)
for any reason the Guarantor will be liable to the Sellers and Barclays as a principal debtor by way of indemnity for the same amount as that for which it would have been liable had those Guaranteed Obligations been recoverable and further agrees to
discharge that liability on demand from time to time. 


  

	11.2	 This Guarantee shall be a continuing obligation and shall continue in force and effect until all Guaranteed Obligations have lapsed or have been paid, discharged or
satisfied in full and notwithstanding any bankruptcy of the Buyer. The Sellers and Barclays may make claims and demands of the Guarantor without limit in number. 


  

	11.3	 The obligations and liabilities expressed to be undertaken by the Guarantor under this Guarantee are those of primary obligor and not merely as a surety.



  

	11.4	 The Sellers and Barclays shall not be obliged before taking steps to enforce any of its rights and remedies under this Guarantee: 


  

 20 









	 	(a)	 to take action or obtain judgment in any court against the Buyer or any other person; 


  

	 	(b)	 to make or file any claim in a bankruptcy, liquidation, administration or insolvency of the Buyer or any other person; or 


  

	 	(c)	 to make, demand, enforce or seek to enforce any claim, right or remedy against the Buyer and any other person. 


  

	11.5	 This Guarantee shall be in addition to and shall not affect or be affected by or merge with any other judgment, security, right or remedy obtained or held by the Sellers
or Barclays from time to time for the discharge and performance of any of the liabilities and obligations of the Guarantor to the Sellers or Barclays, and the Guarantor will not be released or discharged from any of his obligations under this
Guarantee, nor will any of such obligations be affected by: 


  

	 	(a)	 the giving of time or the granting of any other indulgence or concession by the Sellers or Barclays to the Buyer or any other person; 


  

	 	(b)	 any amalgamation, merger or reconstruction of the Sellers or Barclays with any other person or any sale or transfer of the whole or any part of the undertaking and assets
of the Sellers or Barclays to any other person; 


  

	 	(c)	 the existence of any claim, set-off or other rights which the Guarantor may have against the Buyer, the Sellers or Barclays or any other person, or which the Buyer may
have against the Sellers or Barclays, whether in connection with any Guaranteed Obligation or otherwise; or 


  

	 	(d)	 any other fact or matter or thing done or omitted to be done by the Sellers or Barclays (other than a written release of this Guarantee) or any other person which, but for
this provision, might operate to exonerate or discharge the Guarantor from, or otherwise prejudice or affect, any of the Guarantor’s obligations under this Guarantee. 


  

	11.6	 The Sellers’ and Barclays’ rights under this Guarantee will not be prejudiced by any delay in exercising them or by any other act done or omitted by the Sellers
and Barclays which but for this clause might have been deemed a waiver of such rights nor will any exercise of any such right preclude any further exercise of such right or any other right. 


  

	12	 Announcements 


  

	12.1	 Except to the extent otherwise expressly permitted by this Agreement, the parties shall not make any public announcement or issue a press release or respond to any enquiry
from the press or other media concerning or relating to this Agreement or its subject matter or any ancillary matter. 


  

	12.2	 Notwithstanding any other provision in this Agreement, either party may, after consultation with the other party whenever practicable, make or permit to be made an
announcement concerning or relating to this Agreement or its subject matter or any ancillary matter if and to the extent required by: 


  

	 	(a)	 law; or 


  

	 	(b)	 any securities exchange on which either party’s securities are listed or traded; or 


  

	 	(c)	 any regulatory or governmental or other authority with relevant powers to which either party is subject or submits, whether or not the requirement has the force of law.



  

	13	 Confidentiality 


  

	13.1	 Each of the Sellers and the Buyer hereby undertakes that it shall both during and after the term of this Agreement preserve the confidentiality of the Non-Disclosable
Information and, except to the extent otherwise expressly permitted by this Agreement, not directly or indirectly reveal, report, 



  

 21 









	 	 
publish, disclose or transfer or use for its own or any other purposes such Non-Disclosable Information. 


  

	13.2	 Each of the Sellers other than the Covenantors (who are subject to the confidentiality provisions of clause 14.3 below) hereby undertakes severally in respect of itself or
himself only that it shall both during and after the terms of this Agreement preserve the confidentiality of the Confidential Information and except to the extent otherwise permitted by this Agreement, not directly or indirectly disclose or use for
its own benefit any Confidential Information. 


  

	13.3	 Notwithstanding any other provision in this Agreement, either party may, after consultation with the other party whenever practicable and lawful, disclose Non-Disclosable
Information and Confidential Information if and to the extent: 


  

	 	(a)	 required by law; or 


  

	 	(b)	 required by any securities exchange on which either party’s securities are listed or traded; or 


  

	 	(c)	 required by any regulatory or governmental or other authority with relevant powers to which either party is subject or submits (whether or not the authority has the force
of law); or 


  

	 	(d)	 required to vest the full benefit of this Agreement in that party or to enforce any of the rights of that party in this Agreement; or 


  

	 	(e)	 in relation to Non-Disclosure Information only, required by its professional advisers, officers, employees, consultants, subcontractors or agents to provide their services
(and subject always to similar duties of confidentiality); or 


  

	 	(f)	 that information is in or has come into the public domain through no fault of that party; or 


  

	 	(g)	 the other party has given prior written consent to the disclosure; or 


  

	 	(h)	 it is necessary to obtain any relevant Taxation clearances from any appropriate Tax Authority. 


  

	13.4	 ECI may disclose, in the ordinary course of its business, Non-Disclosable Information to the current or potential investors in funds managed by or affiliated with it.



  

	13.5	 The restrictions contained in this clause 13 shall continue to apply after Completion without limit in time. 


  

	14	 Restrictive Covenants 


  

	14.1	 Each of the Covenantors severally covenants with the Buyer on behalf of himself only and not on behalf of any other person that he shall not (except as a director or
employee of or consultant to the Group or with the written consent of the Buyer) during the relevant Period and in the Restricted Area either himself or by an agent and either on his own account or by or in association with or for the benefit of any
other person, either directly or indirectly: 


  

	 	(a)	 be concerned in any business which directly competes with any of the businesses carried on by a Group Company at Completion; 


  

	 	(b)	 take up or hold or seek to take up or hold any office in or with any business which directly competes with the Business; 


  

	 	(c)	 take up or hold any position or post which enables that Covenantor to exercise whether personally or by an agent and whether for his own account or in association with or
for the 



  

 22 









	 	 
benefit of any other person a controlling influence over any business which directly competes with the Business; 


  

	 	(d)	 take up or hold any engagement or consultancy with any person which directly competes with the Business within the Restricted Area; 


  

	 	(e)	 either personally or by an agent and either on his own account or by or in association with any other person or otherwise directly or indirectly engage or seek to engage
in any capacity in any business which directly competes with the Business, 


 but nothing in this clause 14.1 shall
preclude him from: 
  

	 	(i)	 being (or seeking to be) concerned in, employed or engaged by a Competing Business so long as he is not directly or indirectly concerned, employed engaged (or seeking to
be so concerned, employed or engaged) in a Competing Business; or 


  

	 	(ii)	 from holding as an investor not more than 3% of the issued share capital of a company listed on a Recognised Stock Exchange which results or would result in that
Covenantor being engaged in a Competing Business. 


  

	14.2	 Each of the Covenantors severally covenants with the Buyer on behalf of himself only and not on behalf of any other person that he shall not (except as a director or
employee of or a consultant to the Group or with the written consent of the Buyer) either himself or by an agent and either on his own account or by or for the benefit of any other person directly or indirectly during the relevant Period and in the
Restricted Area: 


  

	 	(a)	 canvass, approach solicit or cause to be canvassed, solicited or approached or endeavour to entice away from any Group Company any Key Client or any other client that is
key to the Business or Substantial Supplier; and 


  

	 	(b)	 solicit or seek to entice away from any Group Company (or aid or assist any other person or persons in doing the same), or employ or offer employment (or aid or assist any
other person or persons in doing the same) to any Key Employee or other employee who is key to the Business (provided that this clause shall not prevent any Covenantor or any person connected with him from employing any person who responds to a
public advertisement for the relevant vacancy placed by or on behalf of the Covenantor or any person connected with him if there has been no previous contract in respect of such employment). 


  

	14.3	 No Covenantor shall at any time: 


  

	 	(a)	 subject to clause 13.3, disclose or use for his own benefit or in connection with any business or cause any unauthorised disclosure or use of any Confidential Information
which he possesses at Completion; or 


  

	 	(b)	 use or display any name, trade or service marks, trade or service names, domain names or logos used by any Group Company or any confusingly similar names, marks, domain
names, or logos. 


  

	14.4	 Each Seller other than the Sanne Trust undertakes to the Buyer that following Completion he will not either himself or by an agent and either on its own account or by or
in association with or for the benefit of any other person directly or indirectly represent itself to be connected with or interested in the Business. 


  


 23 









	14.5	 Each Covenantor undertakes that he will not at any time whilst any Group Company uses, or has any right to use, the name “Racal”, directly or indirectly use the
name “Racal” in connection with any trade or business which competes with or is similar to that of any Group Company. 


  

	14.6	 Each Seller acknowledges that the undertakings in clauses 14.1, 14.2, 14.3, 14.4 and 14.5 (as such undertakings apply to him or it) are reasonable, are integral to the
terms on which the Buyer has agreed to purchase the Sale Shares and necessary for the implementation of the purchase of the same. 


  

	14.7	 No Seller shall be treated as committing a breach or violation of the provisions of clauses 14.1, 14.2, 14.4 and 14.5 (as such provisions apply to him or it) if that
Seller is properly acting as a director, consultant or employee of the Company. 


  

	14.8	 The undertakings and covenants contained in clauses 14.1 and 14.2 shall cease to apply to any Covenantor upon such Covenantor ceasing to be a director and/or employee of
any Group Company in circumstances where such Covenantor is made redundant or where the employment of such Covenantor is terminated by any Group Company and where such termination is subsequently Finally Determined to be an unfair dismissal under
Part 10 of the Employment Rights Act 1996. In this clause, “Finally Determined” means an agreement in writing between a Group Company on the one hand and the Covenantor on the other hand, or a termination by an Employment Tribunal or court
of competent authority from which there is no right of appeal or in respect of which the relevant parties are debarred (whether by passage of time or otherwise) from exercising a right of appeal. 


  

	14.9	 Each of the restrictions in this clause shall be enforceable independently of each of the others and its validity shall not be affected if any of the others is invalid. If
any of those restrictions is void but would be valid if some part of the restrictions were deleted the restriction in question shall apply with such modification as may be necessary to make it valid. 


  

	15	 Entire agreement 


  

	15.1	 This Agreement and the documents referred to or incorporated in it constitute the entire agreement between the parties relating to the subject matter of this Agreement and
supersede and extinguish any prior drafts, agreements, undertakings, representations, warranties and arrangements of any nature whatsoever, whether or not in writing, between the parties in relation to the subject matter of this Agreement.



  

	15.2	 Each of the parties acknowledges and agrees that it has not entered into this Agreement in reliance on any statement or representation of any person (whether a party to
this Agreement or not) other than as expressly incorporated in this Agreement. 


  

	15.3	 Nothing in this Agreement or in any other document referred to herein shall be read or construed as excluding any liability or remedy as a result of fraud.



  

	15.4	 Without limiting the generality of the foregoing, each of the parties irrevocably and unconditionally waives any right or remedy it may have to claim damages and/or to
rescind this Agreement by reason of any misrepresentation (other than a fraudulent misrepresentation) having been made to it by any person (whether party to this Agreement or not) and upon which it has relied in entering into this Agreement.



  

	15.5	 Each of the parties acknowledges and agrees that the only cause of action available to it under the terms of this Agreement shall be for breach of contract save for a
claim for indemnification under the Indemnity. 


  

 24 









	16	 Assignment and transfer 


  

	16.1	 This Agreement is personal to the parties and (subject to clause 16.2) no party may assign, transfer, subcontract, delegate, charge or otherwise deal in any other manner
with this Agreement or any of its rights or obligations nor grant, declare, create or dispose of any right or interest in it without the prior written consent of the Buyer (in the case of the Sellers and Barclays) or the Sellers (in the case of the
Buyer). Any purported assignment, transfer, subcontracting, delegation, charging or dealing in contravention of this clause shall be ineffective. 


  

	16.2	 The Buyer may assign to any member of the Buyer’s Group the benefit of any Warranty or any other right it might have under this Agreement or the Tax Deed provided
that the liability of the Sellers and Barclays shall at all times be limited to such liability as they would have had had no such assignment taken place. 


  

	16.3	 If any assignee under clause 16.2 ceases to be a member of the Buyer’s Group then the Buyer shall procure that it promptly assigns all of its rights as assignee
either to the Buyer or to another member of the Buyer’s Group at that time and, pending such assignment, the assignee may not exercise any of its rights as assignee. 


  

	17	 Costs and expenses 


  

	17.1	 Except as otherwise stated in this Agreement, each of the parties shall pay its own costs and expenses in relation to the negotiation, preparation, execution, performance
and implementation of this Agreement and each document referred to in it and other agreements forming part of the transaction, save that this clause shall not prejudice the right of either party to seek to recover its costs in any litigation or
dispute resolution procedure which may arise out of this Agreement. 


  

	17.2	 On Completion, the Buyer will pay to the Sellers £1million towards the professional costs and expenses incurred by the Sellers in addition to the Consideration.



  

	18	 Interest on late payments 


  

	18.1	 If any party fails to pay any sum payable by it on the due date for payment under this Agreement, it shall pay interest on the overdue sum for the period from and
including the due date of payment up to the date of actual payment (after as well as before judgment) in accordance with clause 18.2. 


  

	18.2	 The interest referred to in clause 18.1 shall accrue from day to day and shall be paid on demand at the rate of 3 per cent above the base rate from time to time of
Barclays Bank plc. Unpaid interest shall compound quarterly. 


  

	19	 No set-off 


 All payments to be
made under this Agreement shall be made in full without any set-off or counterclaim and free from any deduction or withholding save as may be required by law in which event such deduction or withholding shall not exceed the minimum amount which it
is required by law to deduct or withhold and in respect of Warranty Claims or other claims under this Agreement the payer will simultaneously pay (other than payments of interest due under clause 18) to the payee such additional amounts as will
result in the receipt by the payee of a net amount equal to the full amount which would otherwise have been receivable had no such deduction or withholding been required provided that if either party have assigned the benefit in whole or in part of
the Agreement then the liability of the payer shall be limited to that which it would have been had no such assignment taken place. 
  

	20	 Waiver 


  

	20.1	 A waiver of any right, power, privilege or remedy provided by this Agreement must be in writing and may be given subject to any conditions thought fit by the grantor. For
the avoidance of doubt, 



  

 25 









	 	 
any omission to exercise, or delay in exercising, any right, power, privilege or remedy provided by this Agreement shall not constitute a waiver of that or any other
right, power, privilege or remedy. 


  

	20.2	 A waiver of any right, power, privilege or remedy provided by this Agreement shall not constitute a waiver of any other breach or default by the other party and shall not
constitute a continuing waiver of the right, power, privilege or remedy waived or a waiver of any other right, power, privilege or remedy. 


  

	20.3	 Any single or partial exercise of any right, power, privilege or remedy arising under this Agreement shall not preclude or impair any other or further exercise of that or
any other right, power, privilege or remedy. 


  

	21	 Variation 


 Any variation of
this Agreement or of any of the documents referred to in it is valid only if it is in writing and signed by or on behalf of each party. 
  

	22	 Severance 


  

	22.1	 If any provision of this Agreement is held to be invalid or unenforceable by any judicial or other competent authority, all other provisions of this Agreement will remain
in full force and effect and will not in any way be impaired. 


  

	22.2	 If any provision of this Agreement is held to be invalid or unenforceable but would be valid or enforceable if some part of the provision were deleted, or the period of
the obligation reduced in time, or the range of activities or area covered, reduced in scope, the provision in question will apply with the minimum modifications necessary to make it valid and enforceable. 


  

	23	 Further assurance 


 The Sellers
shall at his or its own reasonable cost and expense use all their respective reasonable endeavours from time to time on or following Completion, on being required to do so by the Buyer, to do or procure the doing of all such acts and/or execute or
procure the execution of all such documents in a form satisfactory to the Buyer for giving full effect to this Agreement and securing to the Buyer the full benefit of the rights, powers, privileges and remedies conferred upon the Buyer in this
Agreement. 
  

	24	 Notices 


  

	24.1	 Any communication to be given in connection with this Agreement shall be in writing in English except where expressly provided otherwise and shall either be delivered by
hand or sent by first class prepaid post or fax or by email. Delivery by courier shall be regarded as delivery by hand. 


  

	24.2	 Such communication shall be sent to the address of the relevant party referred to in this Agreement or the fax number or email address set out below or to such other
address or fax number or email address as may previously have been communicated to the other party in accordance with this clause 24.2 and clause 24.5. Each communication shall be marked for the attention of the relevant person referred to below.



  

 26 









											
		 		 		    		 		 	
	   Party
	 	 Fax number
	 	 e-mail address
	    	 For the
	 		 	
		 		 		    	 attention of:
	 		 	
						
	  ECI	 	 +44 (0) 20 7240 5050
	 	ken.lindsay@ecipartners.com	    	Ken Lindsay	 		 	
					
	  with a copy to:	 		    		 		 	
						
	  SJ Berwin LLP	 	 +44 (0) 20 7111 2000
	 	richard.lever@sjberwin.com	    	Richard Lever	 		 	
						
	  Warrantors	 	 +44 (0) 20 8515 6200
	 	geof.eeles@racalacoustics.com	    	Geoffrey Eeles	 		 	
						
		 	 +44 (0) 20 8515 6200
	 	terry.buckley@racalacoustics.com	    	Terence Buckley	 		 	
						
		 	 +44 (0) 20 8515 6200
	 	david.watton@racalacoustics.com	    	David Watton	 		 	
					
	  with a copy to:	 		    		 		 	
						
	  SJ Berwin LLP	 	 +44 (0) 20 7111 2000
	 	richard.lever@sjberwin.com	    	Richard Lever	 		 	
						
	  and	 		 		    		 		 	
						
	  Jones Day	 	 +44(0)20 7039 5999
	 	virani@jonesday.com	    	Vica Irani	 		 	
						
	  Barclays	 	 +44(0) 131 470 6240
	 	jamie.grant@barclays.com	    	Jamie Grant	 		 	
					
	  With a copy to:	 		    		 		 	
						
	   Dickson Minto
   W.S.
	 	 +44 (01)131 225 2712
	 	allan.fraser@dmws.com	    	Allan Fraser	 		 	
						
	   the Sanne
   Trust
	 	 +44(0) 1534 769770
	 	colum.spillane@sannegroup.com	    	Colum Spillane	 		 	
						
	  Buyer	 	 +1 425 453 2916
	 	slarson@esterline.com	    	Steve Larson	 		 	
					
	  with a copy to:	 		    		 		 	
						
	   Taylor Wessing
   LLP
	 	 +44 (0)20 7300 7100
	 	m.barron@taylorwessing.com	    	Mark Barron	 		 	

  

	24.3	 A communication shall be deemed to have been served: 


  

	 	(a)	 if delivered by hand at the address referred to in clause 24.2, at the time of delivery; 


  

	 	(b)	 if sent by first class prepaid post to the address referred to in clause 24.2, at the expiration of two clear days after the time of posting; and



  

	 	(c)	 if sent by fax to the number referred to in clause 24.2 or sent by email to the email address specified in that clause, at the time of completion of transmission by the
sender. 


 If a communication would otherwise be deemed to have been delivered outside normal business hours (being
9:30 a.m. to 5:30 p.m. on a Business Day) under the preceding provisions of this clause it shall be deemed to have been delivered at the next opening of such business hours. 
  

	24.4	 In proving service of the communication, it shall be sufficient to show that delivery by hand was made or that the envelope containing the communication was properly
addressed and posted as a first class prepaid letter or that the fax was despatched and a confirmatory transmission report received or that the email was transmitted to the correct email address, whether or not opened or read by the
recipient.


  

 27 









	24.5	 A party may notify the other parties to this Agreement of a change to its name, relevant addressee, address, fax number or email address for the purposes of clause 24.2
provided that such notification shall only be effective on: 


  

	 	(a)	 the date specified in the notification as the date on which the change is to take place; or 


  

	 	(b)	 if no date is specified or the date specified is less than five clear Business Days after the date on which notice is deemed to have been served, the date falling five
clear Business Days after notice of any such change is deemed to have been given. 


  

	24.6	 For the avoidance of doubt, the parties agree that the provisions of clauses 24.1, 24.2, 24.3, 24.4 and 24.5 shall not apply in relation to the service of any claim form,
application notice, order, judgment or other document relating to or in connection with any proceeding, suit or action arising out of or in connection with this Agreement. 


  

	25	 Counterparts 


 This Agreement
may be executed in any number of counterparts, each of which shall constitute an original, and all the counterparts shall together constitute one and the same agreement. 
  

	26	 Governing law 


 This Agreement
is governed by and is to be construed in accordance with English law. 
  

	27	 Jurisdiction 


 The parties
irrevocably agree that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute which may arise out of or in connection with this Agreement. 
  

	28	 Interpretation 


  

	28.1	 The clause and paragraph headings and the table of contents used in this Agreement are inserted for ease of reference only and shall not affect construction.



  

	28.2	 References in this Agreement and the Schedules to the parties, the Introduction, Schedules and clauses are references respectively to the parties, the Introduction and
Schedules to and clauses of this Agreement. 


  

	28.3	 References to documents “in the agreed form” are to documents in terms agreed between the parties prior to execution of this Agreement and signed by or on behalf
of the Buyer and the Sellers for the purposes of identification. 


  

	28.4	 References to “writing” or “written” includes any other non-transitory form of visible reproduction of words. 


  

	28.5	 References to times of the day are to that time in London and references to a day are to a period of 24 hours running from midnight. 


  

	28.6	 References to any English legal term or legal concept shall in respect of any jurisdiction other than England be deemed to include that which most approximates in that
jurisdiction to such English legal term or legal concept. 


  

	28.7	 References to persons shall include bodies corporate, unincorporated associations and partnerships, in each case whether or not having a separate legal personality.



  

	28.8	 References to the word “include” or “including” (or any similar term) are not to be construed as implying any limitation and general words introduced
by the word “other” (or any similar term) shall not be given a restrictive meaning by reason of the fact that they are preceded by words indicating a particular class of acts, matters or things. 


  

 28 









	28.9	 Save where the context specifically requires otherwise, words importing one gender shall be treated as importing any gender, words importing individuals shall be treated
as importing corporations and vice versa, words importing the singular shall be treated as importing the plural and vice versa, and words importing the whole shall be treated as including a reference to any part thereof.



  

	28.10	 References to statutory provisions, enactments or EC Directives shall include references to any amendment, modification, extension, consolidation, replacement or
re-enactment of any such provision, enactment or EC Directive (whether before or after the date of this Agreement), to any previous enactment which has been replaced or amended and to any regulation, instrument or order or other subordinate
legislation made under such provision, enactment or Directive. 


  

	28.11	 A company or other entity shall be a “holding company” for the purposes of this Agreement if it falls within either the meaning attributed to that term in
section 1159 and Schedule 6 of the Companies Act 2006 or the meaning attributed to the term “parent undertaking” in section 1162 and Schedule 7 of such Act, and a company or other entity shall be a “subsidiary” for the purposes
of this Agreement if it falls within any of the meanings attributed to a “subsidiary” in section 1159 and Schedule 6 of the Companies Act 2006 or the meaning attributed to the term “subsidiary undertaking” in section 1162 and
Schedule 7 of such Act, and the terms “subsidiaries” and “holding companies” are to be construed accordingly. 


  

	28.12	 Section 839 of ICTA is to apply to determine whether one person is connected with another for the purposes of this Agreement. 


  

	29	 Rights of third parties 


  

	29.1	 The obligations of confidentiality in clause 13 and the covenants in clause 14 are assumed for the benefit of each Group Company. Each Group Company may rely on and
enforce the obligations of confidentiality accepted by the Sellers and/or the covenants in clause 14 accepted by the Covenantors. 


  

	29.2	 Any person to whom the Warranties or any other rights of the Buyer are properly assigned under clause 16, may rely on and enforce the Warranties and any such rights.



  

	29.3	 Except as otherwise expressly stated, this Agreement does not confer any rights on any person or party (other than the parties to this Agreement) pursuant to the Contracts
(Rights of Third Parties) Act 1999. 


  

	30	 Warrantors’ Agent 


  

	30.1	 Each Warrantor irrevocably appoints Geoffrey Eeles, Terence Buckley and David Watton as his agent and any two of them shall negotiate, determine and agree and to negotiate
and settle any disputes or other such matters incurring under this Agreement or the Tax Deed. 


  

	30.2	 The Warrantor’s Agent may on behalf of any Warrantor: 


  

	 	(a)	 give or receive any notice or consent or make any agreement, or 


  

	 	(b)	 make any other action which the Warrantor may give, receive, make or take or connection with this Agreement or the Tax Deed. 


  

	31	 Effect of Completion 


 This
Agreement shall so far as it remains to be performed after Completion shall continue in force notwithstanding Completion and the rights of the Buyer in respect of this Agreement and the documents referred to in it shall not be affected by
Completion. 
  

 29 









	32	 Provision of information 


 The
Sellers shall, from time to time provide to Barclays such information as Barclays may reasonably request regarding matters pertaining to this Agreement (including in relation to the Completion Accounts and payment of monies out of the Retention
Account.) 
  

	33	 Execution 


 This Agreement is
entered into by the parties under hand on the date at the beginning of this Agreement. 
  

 30 









			
	 SIGNATURES
	 	
		
	 Signed by:
	 	
		
	 /s/ Terence Buckley
	 	
		
	 Terence Buckley
	 	
		
	 Signed by:
	 	
		
	 /s/ Terence Buckley        /s/ Geoffrey Eeles
	 	
		
	 Terence Buckley and Geoffrey Eeles as Trustees of the Terence Buckley 2008 Settlement
	 	
		
	 Signed by:
	 	
		
	 /s/ Andrew Charman
	 	
		
	 Andrew Charman
	 	
		
	 Signed by:
	 	
		
	 /s/ Andrew Charman        /s/ David Payne
	 	
		
	 Andrew Charman and David Payne as Trustees of the Andrew Charman 2008 Settlement
	 	
		
	 Signed by:
	 	
		
	 /s/ Michael Derbyshire
	 	
		
	 Michael Derbyshire
	 	
		
	 Signed by:
	 	
		
	 /s/ Geoffrey Eeles        /s/ David Watton*
	 	
		
	 Michael Derbyshire and James Green as Trustees of the Michael Derbyshire 2008 Settlement
	 	








 *Signed on behalf of Michael Derbyshire and James Green under a power of attorney dated 19 December 2008.

  

			
	 Signed by:
	 	
		
	 /s/ Geoffrey Eeles
	 	
		
	 Geoffrey Eeles
	 	
		
	 Signed by:
	 	
		
	 /s/ Geoffrey Eeles    /s/ David Charles Watton
	 	
		
	 Geoffrey Eeles and David Charles Watton as
 Trustees of the Geoffrey Eeles 2008 Settlement
	 	
		
	 Signed by:
	 	
		
	 /s/ David Payne
	 	
		
	David Payne	 	
		
	 Signed by:
	 	
		
	 /s/ David Payne        /s/ Paul Watson
	 	
		
	 David Payne and Paul Watson as
 Trustees of the David Payne 2008
Settlement
	 	
		
	 Signed by:
	 	
		
	 /s/ Paul Watson
	 	
		
	 Paul Watson
	 	
		
	 Signed by:
	 	
		
	 /s/ Paul Watson        /s/ Andrew Charman
	 	
		
	 Paul Watson and Andrew Charman as
	 	









			
	 Trustees of the Paul Watson 2008
 Settlement

	 	
		
	 Signed by:
	 	
		
	 /s/ David Watton
	 	
		
	 David Watton
	 	
		
	 Signed by:
	 	
		
	 /s/ David Watton        /s/ Geoffrey Eeles
	 	
		
	 David Watton and Geoffrey Eeles as
 Trustees
of the David Watton 2008
 Settlement
	 	









					
	 Signed by:
	 		 	
			
	 /s/ [ILLEGIBLE SIGNATURE]
	 	 /s/ [ILLEGIBLE SIGNATURE]
	 	
			
	 Director
	 	 Director
	 	
		
	 on behalf of Sanne Trust Company
 Limited
	 	









			
	 Signed by:
	 	
		
	 /s/ Ken Lindsay
	 	
		
	 Ken Lindsay
  
 for and on behalf of ECI Partners LLP as
 manager of ECI 7
(UK) LP
	 	
		
	 Signed by:
	 	
		
	 /s/ Ken Lindsay
	 	
		
	 Ken Lindsay
  
 for and on behalf of ECI Partners LLP as
 manager of ECI 7 LP

	 	
		
	 Signed by:
	 	
		
	 /s/ Ken Lindsay
	 	
		
	 Ken Lindsay
  
 for and on behalf of ECI Partners LLP as
 manager of ECI 8 LP

	 	
		
	 Signed by:
	 	
		
	 /s/ Ken Lindsay
	 	
		
	 Ken Lindsay
  
 for and on behalf of ECI Partners LLP as
 manager of ECI 7
(US) LP
	 	
		
	 Signed by:
	 	
		
	 /s/ Ken Lindsay
	 	
		
	 Ken Lindsay
  
 for and on behalf of ECI Partners LLP as
 manager of ECI 8
(US) LP
	 	









			
	 Signed by:
	 	
		
	 /s/ [ILLEGIBLE SIGNATURE]
	 	
		
	 Authorised signatory
 For and on behalf of
Barclays Bank plc
	 	









			
	 Signed by:
	 	
		
	 /s/ Stephen Larson
	 	
		
	 Stephen Larson
 For and on behalf of WESTON

 AEROSPACE LIMITED
	 	









			
	 Signed by:
	 	
		
	 /s/ Stephen Larson
	 	
		
	 Stephen Larson
 For and on behalf of
ESTERLINE
 TECHNOLOGIES CORPORATION