Document:

Exhibit 4.1
                              Aeroflex Incorporated
                       2000 Stock Option Plan, as amended
                       ----------------------------------

SECTION 1.  GENERAL PROVISIONS
            ------------------

1.1  Name and General Purpose
     ------------------------

     The name of this plan is the Aeroflex  Incorporated  2000 Stock Option Plan
(hereinafter  called the  "Plan").  The Plan is intended  to be a  broadly-based
incentive  plan which enables  Aeroflex  Incorporated  (the  "Company")  and its
subsidiaries  and  affiliates to foster and promote the interests of the Company
by  attracting  and  retaining   directors,   officers  and  employees  of,  and
consultants  to, the Company who  contribute to the  Company's  success by their
ability, ingenuity and industry, to enable such directors,  officers,  employees
and  consultants  to  participate  in the  long-term  success  and growth of the
Company by giving  them a  proprietary  interest  in the  Company and to provide
incentive  compensation   opportunities  competitive  with  those  of  competing
corporations.

1.2  Definitions
     -----------

     a.   "Affiliate"  means any person or entity  controlled by or under common
          control  with the  Company,  by  virtue  of the  ownership  of  voting
          securities, by contract or otherwise.

     b.   "Board" means the Board of Directors of the Company.

     c.   "Change in Control"  means a change of control of the  Company,  or in
          any person directly or indirectly controlling the Company, which shall
          mean:

          (a) a  change  in  control  as  such  term  is  presently  defined  in
          Regulation  240.12b-(2) under the Securities  Exchange Act of 1934, as
          amended (the "Exchange Act"); or

          (b) if any "person"  (as such term is used in Section  13(d) and 14(d)
          of the Exchange Act) other than the Company or any "person" who on the
          date of this  Agreement  is a  director  or  officer  of the  Company,
          becomes the  "beneficial  owner" (as defined in Rule 13(d)-3 under the
          Exchange  Act)  directly or  indirectly,  of securities of the Company
          representing  twenty  percent (20%) or more of the voting power of the
          Company's then outstanding securities; or

          (c) if during any period of two (2) consecutive  years during the term
          of  this  Plan,  individuals  who  at the  beginning  of  such  period
          constitute the Board of Directors,  cease for any reason to constitute
          at least a majority thereof.

     d.   "Committee"  means the  Committee  referred  to in Section  1.3 of the
          Plan.

     e.   "Common  Stock" means shares of the Common  Stock,  par value $.10 per
          share, of the Company.

     f.   "Company" means Aeroflex  Incorporated,  a corporation organized under
          the laws of the State of Delaware (or any successor corporation).

     g.   "Fair Market  Value" means the market price of the Common Stock on the
          Nasdaq  Stock  Market  on the day prior to the date of the grant or on
          any other date on which the Common Stock is to be valued hereunder. If
          no sale shall have been  reported on the Nasdaq  Stock  Market on such
          date, Fair Market Value shall be determined by the Committee.

     h.   "Non-Employee Director" shall have the meaning set forth in Rule 16(b)
          promulgated by the Securities and Exchange Commission ("Commission").

     i.   "Option" means any option to purchase  Common Stock under Section 2 of
          the Plan.

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     j.   "Option Agreement" means the option agreement described in Section 2.4
          of the Plan.

     k.   "Participant" means any director,  officer,  employee or consultant of
          the  Company,  a  Subsidiary  or an  Affiliate  who is selected by the
          Committee to participate in the Plan.

     l.   "Subsidiary"  means any  corporation  in which the  Company  possesses
          directly or indirectly 50% or more of the combined voting power of all
          classes of stock of such corporation.

     m.   "Total  Disability"  means accidental  bodily injury or sickness which
          wholly and  continuously  disabled an optionee.  The Committee,  whose
          decisions  shall  be  final,  shall  make  a  determination  of  Total
          Disability.

1.3  Administration of the Plan
     --------------------------

     The Plan shall be administered  by the Board or by the Committee  appointed
by the Board consisting of two or more members of the Board all of whom shall be
Non-Employee  Directors.  The Committee shall serve at the pleasure of the Board
and shall have such powers as the Board may, from time to time, confer upon it.

     Subject to this  Section 1.3,  the  Committee  shall have sole and complete
authority to adopt, alter, amend or revoke such administrative rules, guidelines
and  practices  governing  the  operation of the Plan as it shall,  from time to
time, deem advisable, and to interpret the terms and provisions of the Plan.

     The Committee  shall keep minutes of its meetings and of action taken by it
without a meeting.  A majority of the Committee shall  constitute a quorum,  and
the acts of a majority of the  members  present at any meeting at which a quorum
is present,  or acts  approved in writing by all of the members of the Committee
without a meeting, shall constitute the acts of the Committee.

1.4  Eligibility
     -----------

     Stock  Options may be granted  only to  directors,  officers,  employees or
consultants  of the Company or a Subsidiary  or  Affiliate.  All  employees  are
eligible  to  receive  Stock  Options  under the Plan.  Any  person who has been
granted any Option may, if he is otherwise  eligible,  be granted an  additional
Option or Options.

1.5  Shares
     ------

     The aggregate  number of shares reserved for issuance  pursuant to the Plan
shall be  5,625,000(1)  shares of Common Stock, or the number and kind of shares
of stock or other  securities  which shall be substituted  for such shares or to
which such shares shall be adjusted as provided in Section 1.6.

     Such number of shares may be set aside out of the  authorized  but unissued
shares of Common Stock or out of issued shares of Common Stock  acquired for and
held in the Treasury of the Company, not reserved for any other purpose.  Shares
subject to, but not sold or issued under, any Option terminating or expiring for
any reason  prior to its  exercise in full will again be  available  for Options
thereafter granted during the balance of the term of the Plan.

1.6  Adjustments Due to Stock Splits, Mergers, Consolidation, Etc.
     -------------------------------------------------------------

     If, at any time,  the  Company  shall  take any  action,  whether  by stock
dividend,  stock split,  combination of shares or otherwise,  which results in a
proportionate  increase  or  decrease  in the  number of shares of Common  Stock
theretofore issued and outstanding,  the number of shares which are reserved for
issuance  under the Plan and the  number  of shares  which,  at such  time,  are
subject to Options shall, to the extent deemed appropriate by the Committee,  be
increased or  decreased  in the same  proportion,  provided,  however,  that the
Company shall not be obligated to issue fractional shares.

---------------------------

     (1) after giving effect to the Company's  5-for-4 stock split in July 2000,
the  amendment  of the Plan on October  12,  2000,  the  2-for-1  stock split in
November 2000 and the amendment of the Plan on May 3, 2001 and October 25, 2001.

                                       2
<PAGE>

     Likewise,  in the event of any change in the  outstanding  shares of Common
Stock by reason of any recapitalization, merger, consolidation,  reorganization,
combination or exchange of shares or other corporate change, the Committee shall
make such substitution or adjustments, if any, as it deems to be appropriate, as
to the number or kind of shares of Common  Stock or other  securities  which are
reserved  for  issuance  under  the  Plan  and the  number  of  shares  or other
securities which, at such time are subject to Options.

     In the  event  of a  Change  in  Control,  at the  option  of the  Board or
Committee,  (a) all  Options  outstanding  on the date of such Change in Control
shall become  immediately  and fully  exercisable,  and (b) an optionee  will be
permitted to surrender for cancellation within sixty (60) days after such Change
in Control any Option or portion of an Option  which was  granted  more than six
(6) months prior to the date of such surrender, to the extent not yet exercised,
and to receive a cash payment in an amount  equal to the excess,  if any, of the
Fair  Market  Value (on the date of  surrender)  of the  shares of Common  Stock
subject  to the  Option  or  portion  thereof  surrendered,  over the  aggregate
purchase price for such Shares under the Option.

1.7  Non-Alienation of Benefits
     --------------------------

     Except as herein  specifically  provided,  no right or unpaid benefit under
the Plan shall be subject to  alienation,  assignment,  pledge or charge and any
attempt to  alienate,  assign,  pledge or charge the same shall be void.  If any
Participant  or other person  entitled to benefits  hereunder  should attempt to
alienate,  assign,  pledge or charge any benefit  hereunder,  then such  benefit
shall, in the discretion of the Committee, cease.

1.8  Withholding or Deduction for Taxes
     ----------------------------------

     If, at any time,  the Company or any  Subsidiary  or Affiliate is required,
under applicable laws and regulations, to withhold, or to make any deduction for
any taxes, or take any other action in connection with any Option exercise,  the
Participant  shall be  required  to pay to the  Company  or such  Subsidiary  or
Affiliate, the amount of any taxes required to be withheld, or, in lieu thereof,
at the option of the Company,  the Company or such  Subsidiary  or Affiliate may
accept a  sufficient  number  of shares  of  Common  Stock to cover  the  amount
required to be withheld.

1.9  Administrative Expenses
     -----------------------

     The entire expense of administering the Plan shall be borne by the Company.

1.10 General Conditions
     ------------------

     a.   The Board or the Committee may, from time to time,  amend,  suspend or
          terminate  any or all of the  provisions of the Plan,  provided  that,
          without the Participant's  approval, no change may be made which would
          alter or impair any right theretofore granted to any Participant.

     b.   With the consent of the Participant  affected  thereby,  the Committee
          may  amend  or  modify  any  outstanding  Option  in  any  manner  not
          inconsistent   with  the  terms  of  the  Plan,   including,   without
          limitation,  and  irrespective of the provisions of Section 2.3 below,
          to  accelerate  the date or dates  as of  which an  installment  of an
          Option becomes  exercisable;  provided,  that the Committee  shall not
          have the right to reprice any outstanding Options.

     c.   Nothing  contained  in the Plan  shall  prohibit  the  Company  or any
          Subsidiary or Affiliate from establishing  other additional  incentive
          compensation  arrangements  for  employees  of  the  Company  or  such
          Subsidiary or Affiliate.

     d.   Nothing in the Plan shall be deemed to limit, in any way, the right of
          the  Company  or  any   Subsidiary   or   Affiliate   to  terminate  a
          Participant's   employment  or  service  with  the  Company  (or  such
          Subsidiary or Affiliate) at any time.

     e.   Any decision or action taken by the Board or the Committee arising out
          of  or  in   connection   with   the   construction,   administration,
          interpretation  and effect of the Plan shall be conclusive and binding
          upon all  Participants  and any person  claiming  under or through any
          Participant.

                                       3
<PAGE>

     f.   No member of the Board or of the Committee shall be liable for any act
          or action,  whether of  commission  or  omission,  (i) by such  member
          except in  circumstances  involving  actual bad faith, nor (ii) by any
          other member or by any officer, agent or employee.

1.11 Compliance with Applicable Law
     ------------------------------

     Notwithstanding  any other  provision of the Plan, the Company shall not be
obligated to issue any shares of Common Stock,  or grant any Option with respect
thereto,  unless it is advised by  counsel  of its  selection  that it may do so
without  violation of the  applicable  Federal and State laws  pertaining to the
issuance of  securities  and the Company  may require any stock  certificate  so
issued to bear a legend, may give its transfer agent  instructions  limiting the
transfer  thereof,  and may  take  such  other  steps,  as in its  judgment  are
reasonably required to prevent any such violation.

1.12 Effective Dates
     ---------------

     The Plan was  adopted by the Board on March 22, 2000 and amended on October
12,  2000,  March  21,2001,  May 3, 2001 and  October 25,  2001.  The Plan shall
terminate on March 21, 2010.

Section 2.  OPTION GRANTS
            -------------

2.1  Authority of Committee
     ----------------------

     Subject to the  provisions of the Plan,  the Committee  shall have the sole
and complete  authority to determine (i) the  Participants to whom Options shall
be granted;  (ii) the number of shares to be covered by each  Option;  and (iii)
the  conditions  and  limitations,  if any,  in  addition  to those set forth in
Sections 2 and 3 hereof,  applicable  to the  exercise  of an Option,  including
without limitation,  the nature and duration of the restrictions,  if any, to be
imposed upon the sale or other  disposition of shares  acquired upon exercise of
an Option.

     Stock Options granted under the Plan shall be non-qualified stock options.

     The Committee shall have the authority to grant Options.

2.2  Option Exercise Price
     ---------------------

     The exercise  price set forth in the Option  Agreement at the time of grant
shall not be less than the Fair  Market  Value of the  Common  Stock at the time
that the Option is granted;  provided, that in the case of any Option granted in
connection with a business acquisition,  the Board may grant such Option with an
exercise  price  that is less  than  the Fair  Market  Value at the time of such
grant.

     The  purchase  price  is to be  paid in full  in  cash,  certified  or bank
cashier's  check or, at the option of the  Company,  Common  Stock valued at its
Fair Market Value on the date of exercise,  or a combination  thereof,  when the
Option is exercised and stock  certificates  will be delivered only against such
payment.

2.3  Option Grants
     -------------

     Each Option will be subject to the following provisions:

     a.   Term of Option
          --------------

          An Option  will be for a term of not more than ten years from the date
     of grant.

     b.   Exercise
          --------

          (i)  By an Employee:
               --------------

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<PAGE>
          Unless  otherwise  provided by the  Committee and except in the manner
          described  below  upon the death of the  optionee,  an  Option  may be
          exercised  only in  installments  as  follows:  up to  one-half of the
          subject  shares  on and after  the  first  anniversary  of the date of
          grant,  up to all of the  subject  shares on and after the second such
          anniversary  of the date of the grant of such  Option  but in no event
          later than the expiration of the term of the Option.

          An Option shall be exercisable during the optionee's  lifetime only by
          the optionee and shall not be exercisable by the optionee  unless,  at
          all times  since the date of grant and at the time of  exercise,  such
          optionee is an employee of or providing  services to the Company,  any
          parent  corporation  of the Company or any  Subsidiary  or  Affiliate,
          except that,  upon  termination of all such employment or provision of
          services  (other  than  by  death,  Total  Disability,   or  by  Total
          Disability followed by death in the circumstances provided below), the
          optionee  may  exercise  an Option  at any time  within  three  months
          thereafter  but only to the extent such Option is  exercisable  on the
          date of such termination.

          Upon  termination  of all such  employment  by Total  Disability,  the
          optionee  may  exercise  such  Options  at any  time  within  one year
          thereafter,  but only to the extent such Option is  exercisable on the
          date of such termination.

          In the event of the death of an  optionee  (i) while an employee of or
          providing  services  to the  Company,  any parent  corporation  of the
          Company or any  Subsidiary or  Affiliate,  or (ii) within three months
          after  termination  of all such  employment  or  provision of services
          (other  than for Total  Disability)  or (iii)  within  one year  after
          termination on account of Total  Disability of all such  employment or
          provision  of  services,  such  optionee's  estate or any  person  who
          acquires the right to exercise  such option by bequest or  inheritance
          or by reason of the death of the optionee may exercise such optionee's
          Option at any time  within the period of three  years from the date of
          death.  In the case of clauses (i) and (iii) above,  such Option shall
          be exercisable in full for all the remaining  shares covered  thereby,
          but in the case of clause (ii) such Option shall be  exercisable  only
          to the extent it was  exercisable  on the date of such  termination of
          employment or service.

(ii) By Persons other than Employees:
     -------------------------------

          If the  optionee  is not an  employee  of the  Company  or the  parent
          corporation of the Company or any Subsidiary or Affiliate, the vesting
          of such optionee's  right to exercise his Options shall be established
          and determined by the Committee in the Option  Agreement  covering the
          Options granted to such optionee.

          Notwithstanding the foregoing  provisions regarding the exercise of an
          Option in the event of death,  Total Disability,  other termination of
          employment or provision of services or otherwise, in no event shall an
          Option be exercisable in whole or in part after the  termination  date
          provided in the Option Agreement.

c.   Transferability
     ---------------

          An Option granted under the Plan shall not be  transferable  otherwise
          than by will or by the laws of descent and distribution, except as may
          be permitted by the Board or the Committee.

2.4  Agreements
     ----------

          In  consideration  of any Options  granted to a Participant  under the
     Plan, each such  Participant  shall enter into an Option Agreement with the
     Company  providing,  consistent  with the Plan, such terms as the Committee
     may deem advisable.

                                       5<PAGE>
                                                                   EXHIBIT 10.45

              CONSENT AND AMENDMENT NO. 2 TO FORBEARANCE AGREEMENT

      This CONSENT AND AMENDMENT NO. 2 TO FORBEARANCE AGREEMENT, dated as of
September 27, 2001 (this "Agreement"), is by and among (a) TransTechnology
Corporation ("TransTechnology"), TransTechnology Seeger-Orbis GmbH ("GmbH") and
TransTechnology (GB) Limited ("Limited", together with TransTechnology and GmbH,
the "Borrowers"), (b) Fleet National Bank ("FNB") and the other lending
institutions listed on Schedule 1 to the Credit Agreement (as hereinafter
defined) (collectively, the "Lenders"), (c) FNB, acting through its London
Branch, as Sterling Fronting Bank (the "Sterling Fronting Bank"), (d) BHF-BANK
Aktiengesellschaft, as DM Fronting Bank (the "DM Fronting Bank"; together with
the Sterling Fronting Bank, the "Fronting Banks"), (e) FNB, as issuing bank for
Letters of Credit (in such capacity, the "Issuing Bank"), and (f) FNB as
Administrative Agent for the Lenders, the Fronting Banks and the Issuing Bank
(in such capacity, the "Administrative Agent").

      WHEREAS, the Borrowers, the Lenders, the Fronting Banks, the Issuing Bank,
ABN AMRO Bank N.V., as Syndication Agent, Bank One, NA, as Documentation Agent,
and the Administrative Agent are parties to that certain Second Amended and
Restated Credit Agreement dated as of June 30, 1995, and amended and restated as
of July 24, 1998, as further amended and restated as of August 31, 1999, as
amended by that certain Consent and Amendment Agreement No. 1 dated as of August
21, 2000, as further amended by that certain Amendment Agreement No. 2 dated as
of December 29, 2000, and as further amended by that certain Amendment Agreement
No. 3 dated as of January 31, 2001 (as so amended and restated, the "Credit
Agreement"). Capitalized terms used herein unless otherwise defined shall have
the respective meanings set forth in the Credit Agreement;

      WHEREAS, pursuant to that certain Forbearance and Waiver Agreement dated
as of March 29, 2001, as amended by that certain Consent and Amendment to
Forbearance Agreement dated as of June 25, 2001 (as so amended, the "Forbearance
Agreement"), by and among the Borrowers, the Lenders, the Fronting Banks, and
the Administrative Agent, the Lenders and the Administrative Agent agreed to
forbear from (a) exercising their rights and remedies under the Credit Agreement
and the other Loan Documents to collect the indebtedness of the Borrowers to the
Administrative Agent and the Lenders under the Credit Agreement and the other
Loan Documents and (b) ceasing to make Revolving Credit Loans or International
Facility Loans or to issue, extend or renew Letters of Credit;

      WHEREAS; pursuant to the terms of the Forbearance Agreement the
forbearance period will end on September 27, 2001;

      WHEREAS, the Borrowers have requested that the Lenders and the
Administrative Agent extend such forbearance period;

      WHEREAS, in accordance with Section 2 of the Forbearance Agreement, the
Borrowers have requested that the Lenders consent to the sale (the "Engineered
<PAGE>
                                      -2-

Components Sale") of TransTechnology's Engineered Components business, which
consists of TransTechnology Engineered Components, LLC, TransTechnology Canada
Corporation and the Palnut Division of TransTechnology (collectively, the
"Engineered Components Assets"), to KTIN Acquisition, LLC (an entity formed by
Kohlberg Management IV, L.L.C., a private investment company located in Mt.
Kisco, New York); and

      WHEREAS, the Lenders and the Administrative Agent are willing to extend
the forbearance period and consent to the Engineered Components Sale, but only
on the terms and subject to the conditions set forth herein;

      NOW, THEREFORE, in consideration of the foregoing premises, the parties
hereto hereby agree as follows:

      SECTION 1. CONSENT TO ENGINEERED COMPONENTS SALE. Subject to the
satisfaction of the conditions contained in Section 3 hereof, the Lenders, the
Fronting Banks, and the Administrative Agent consent to the Engineered
Components Sale and consent to the release of the Administrative Agent's liens
on the Engineered Components Assets so long as (a) the Net Cash Proceeds
received by the Borrowers in connection with the Engineered Components Sale (the
"Engineered Components Sale Proceeds") are not less than One Hundred Fifteen
Million Dollars ($115,000,000), (b) all documents relating to the Engineered
Components Sale, including, but not limited to any fairness opinions issued in
connection with the Engineered Components Sale, shall be in form and substance
satisfactory to the Administrative Agent, (c) all Engineered Components Sale
Proceeds shall be applied immediately upon receipt to prepay the Revolving
Credit Loans, and (d) the Engineered Components Sale Proceeds are received not
later than October 19, 2001. The Borrowers, the Lenders, the Fronting Banks, and
the Administrative Agent hereby agree that upon the consummation of the
Engineered Components Sale the Total Revolving Credit Commitment shall be
reduced by the amount of the Engineered Components Sale Proceeds (rounded to the
nearest $1,000) whereupon the Revolving Credit Commitments of the Lenders shall
be reduced pro rata on such date in accordance with their respective Commitment
Percentages. The Lenders and the Fronting Banks authorize the Administrative
Agent to enter into appropriate release documents necessary in order to release
the Administrative Agent's liens on the Engineered Components Assets.

      SECTION 2. AMENDMENT TO FORBEARANCE AGREEMENT. (a) The Forbearance
Agreement is hereby amended with effect from the Effective Date of this
Agreement as follows:

            (i) Section 1 of the Forbearance Agreement is amended by deleting
      the date "September 27, 2001" in the two (2) places where such date is
      contained therein and substituting the date "December 21, 2001".

            (ii) Schedule 3(a) of the Forbearance Agreement is deleted in its
      entirety and replaced with Schedule 3(a) attached hereto as Exhibit A.
<PAGE>
                                      -3-

            (iii) Section 3(b) of the Forbearance Agreement is amended by (A)
      deleting the dollar amount "$154,000,000" contained in the first sentence
      thereof and replacing it with the dollar amount "$153,045,000".

            (iv) Section 3(d) of the Forbearance Agreement is amended by
      inserting at the end thereof the following new sentence: "Notwithstanding
      anything to the contrary contained in this Section 3(d), commencing on
      October 19, 2001 and for so long thereafter as the Total Revolving Credit
      Commitment exceeds $45,045,000 the Applicable Margin in effect with
      respect to Base Rate Loans and the Applicable Margin in effect with
      respect to Eurocurrency Rate Loans will be increased by 50bps."

            (v) Section 3(e) of the Forbearance Agreement is amended by (a)
      deleting the date "September 27, 2001" contained therein and substituting
      the date "December 21, 2001", and (b) inserting at the end thereof the
      following new sentence: "Notwithstanding anything to the contrary
      contained in this Section 3(e), commencing on October 19, 2001 and for so
      long thereafter as the Total Revolving Credit Commitment exceeds
      $45,045,000 the Borrowers may not elect to convert any part of the Loans
      to or maintain any part of the Loans as Eurocurrency Rate Loans
      denominated in Dollars."

            (vi) Section 3(k) of the Forbearance Agreement is amended by
      deleting the dollar amount "$2,200,000" contained therein and substituting
      the dollar amount "$4,700,000".

            (vii) Section 3(n) of the Forbearance Agreement is amended by
      deleting the date "September 27, 2001" contained therein and substituting
      the date "December 21, 2001".

            (viii) Schedule 6(a) of the Forbearance Agreement is deleted in its
      entirety and replaced with Schedule 6(a) attached hereto.

            (ix) Section 10 of the Forbearance Agreement is amended by adding
      the following new paragraph (e) at the end thereof:

            "(e)  An additional forbearance fee on the earlier of (a) the date
                  that Borrowers prepay the Revolving Credit Loans and
                  permanently reduce the Total Revolving Credit Commitment in
                  connection with the Engineered Components Sale, and (b)
                  October 19, 2001, equal to one-quarter of one percent (1/4%)
                  of the Total Revolving Credit Commitment (after giving effect
                  to the reduction of the Total Revolving Credit Commitment as a
                  result of the Engineered Components Sale)."

            (x) The Forbearance Agreement is amended by adding the following new
      Section 10.A immediately after Section 10:
<PAGE>
                                      -4-

            "SECTION 10.A. BORROWING TO PAY SUBDEBT INTEREST. On October 1,
      2001, TransTechnology shall pay the Administrative Agent, for the pro-rata
      benefit of each Lender, a fee equal to One Hundred Thousand Dollars
      ($100,000) (representing four percent (4%) of Two Million Five Hundred
      Thousand Dollars ($2,500,000) (the "Subdebt Interest Payment Amount")
      which is the amount equal to the interest payment due on the Senior
      Subordinated Loans on October 1, 2001 rounded to the nearest $100,000). At
      all times after October 1, 2001, a portion of the Loans equal to the
      Subdebt Interest Payment Amount shall bear interest (payable monthly in
      arrears on the first day of each month) at an annual rate equal to twenty
      five percent (25%)."

            (xi) The Forbearance Agreement shall be deemed amended to include
      capitalized defined terms used in this Agreement to the extent not defined
      in the Forbearance Agreement.

      (b) The Forbearance Agreement is hereby amended with effect from the
closing date of the Engineered Components Sale as follows:

            (i) Section 3(a) of the Forbearance Agreement is amended by deleting
      the words "; provided, however, Modified Consolidated EBITDA for periods
      after June 1, 2001 shall not include any amounts relating to or otherwise
      attributed to the Breeze Assets" and substituting the words "; provided,
      however, Modified Consolidated EBITDA for periods after (i) June 1, 2001
      shall not include any amounts relating to or otherwise attributed to the
      Breeze Assets, and (ii) October 1, 2001 shall not include any amounts
      relating to or otherwise attributed to the Engineered Components Assets."

            (ii) Schedule 3(a) of the Forbearance Agreement is deleted in its
      entirety and replaced with Schedule 3(a) attached hereto as Exhibit B.

            (iii) Section 3(b) of the Forbearance Agreement is amended by
      deleting the dollar amount "$153,045,000" contained in the first sentence
      thereof and replacing it with the words "$43,500,000 minus the amount by
      which the Engineered Components Sale Proceeds exceed $115,000,000 (rounded
      to the nearest $1,000)".

      SECTION 3. CONDITIONS TO EFFECTIVENESS. The effectiveness of this
Agreement shall be conditioned upon the satisfaction of the following conditions
precedent:

      SECTION 3.1. DELIVERY OF DOCUMENTS.

      (a) This Agreement shall have been executed and delivered to the
Administrative Agent by each of the Borrowers, each of the Guarantors, and the
requisite Lenders.

      (b) The Company and the holders of all of the Senior Subordinated Loans
shall have executed and delivered to the Administrative Agent an agreement in
substantially the form of Exhibit C hereto.
<PAGE>
                                      -5-

      SECTION 3.2. LEGALITY OF TRANSACTION. No change in applicable law shall
have occurred as a consequence of which it shall have become and continue to be
unlawful on the date this Agreement is to become effective (a) for the
Administrative Agent or any Lender to perform any of its obligations under any
of the Loan Documents or (b) for any of the Borrowers to perform any of its
agreements or obligations under any of the Loan Documents.

      SECTION 3.3. PERFORMANCE. Each of the Borrowers shall have duly and
properly performed, complied with and observed in all material respects its
covenants, agreements and obligations contained in the Loan Documents required
to be performed, complied with or observed by it on or prior to the date this
Agreement is to become effective. Except for the Specified Defaults (as defined
in the Forbearance Agreement), no event shall have occurred on or prior to the
Effective Date, and be continuing, and no condition shall exist on the Effective
Date, which constitutes a Default or Event of Default.

      SECTION 3.4. PROCEEDINGS AND DOCUMENTS. All corporate, governmental and
other proceedings in connection with the transactions contemplated by this
Agreement and all instruments and documents incidental thereto shall be in form
and substance reasonably satisfactory to the Administrative Agent and the
Administrative Agent shall have received all such counterpart originals or
certified or other copies of all such instruments and documents as the
Administrative Agent shall have reasonably requested.

      SECTION 4. REPRESENTATIONS AND WARRANTIES. Each of the Borrowers hereby
represents and warrants to the Lenders as follows:

      (a) Except as set forth on Schedule 6(a) to the Forbearance Agreement, the
representations and warranties of such Borrower and of each Guarantor contained
in the Credit Agreement, the Forbearance Agreement and the other Loan Documents
to which such Borrower or Guarantor, as the case may be, is a party were true
and correct in all material respects when made and continue to be true and
correct in all material respects on the date hereof, except that the financial
statements and projections referred to in the representations and warranties
contained in the Credit Agreement shall be the financial statements and
projections of TransTechnology and its Subsidiaries most recently delivered to
the Administrative Agent, and except as such representations and warranties are
affected by the transactions contemplated hereby;

      (b) The execution, delivery and performance by such Borrower of this
Agreement and the consummation of the transactions contemplated hereby: (i) are
within the corporate powers of such Borrower and have been duly authorized by
all necessary corporate action on the part of such Borrower, (ii) do not require
any approval or consent of, or filing with, any governmental agency or
authority, or any other person, association or entity, which bears on the
validity or enforceability of this Agreement and which is required by law or any
regulation or rule of any agency or authority, or other person, association or
entity, (iii) do not violate any provisions of any order, writ, judgment,
<PAGE>
                                      -6-

injunction, decree, determination or award presently in effect in which such
Borrower is named, any law, regulation or rule binding on or applicable to such
Borrower or any provision of the charter documents or by-laws of such Borrower,
(iv) do not result in any breach of or constitute a default under any agreement
or instrument to which such Borrower is a party or to which it or any of its
properties are bound, including without limitation any indenture, credit or loan
agreement, lease, debt instrument or mortgage, except for such breaches and
defaults which would not have a material adverse effect on such Borrower and its
Subsidiaries taken as a whole, and (v) do not result in or require the creation
or imposition of any mortgage, deed of trust, pledge or encumbrance of any
nature upon any of the assets or properties of such Borrower;

      (c) This Agreement, the Credit Agreement and the Forbearance Agreement
constitute the legal, valid and binding obligations of such Borrower,
enforceable against such Borrower in accordance with their respective terms,
provided that (i) enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application
affecting the rights and remedies of creditors, and (ii) enforcement may be
subject to general principles of equity, and the availability of the remedies of
specific performance and injunctive relief may be subject to the discretion of
the court before which any proceeding for such remedies may be brought; and

      (d) As of the date hereof, no "Event of Default" under and as defined in
any instrument evidencing any Subordinated Debt has occurred.

      SECTION 5. REAFFIRMATION. Except as modified hereby, the Borrowers hereby
reaffirm in all respects all the covenants, agreements, terms and conditions of
the Credit Agreement, the Forbearance Agreement and the other Loan Documents
which are incorporated in full herein by reference, and all terms, conditions
and provisions thereof shall remain in full force and effect.

      SECTION 6. EXECUTION IN COUNTERPARTS. This Agreement may be executed in
any number of counterparts and by each party on a separate counterpart, each of
which when so executed and delivered shall be an original, but all of which
together shall constitute one instrument. In proving this Agreement, it shall
not be necessary to produce or account for more than one such counterpart signed
by the party against whom enforcement is sought.

      SECTION 7. RELEASE. In order to induce the Administrative Agent and the
Lenders to enter into this Agreement, each Borrower acknowledges and agrees
that: (i) no Borrower has any claim or cause of action against the
Administrative Agent or any Lender (or any of its respective directors,
officers, employees or agents); (ii) no Borrower has any offset right,
counterclaim or defense of any kind against any of their respective obligations,
indebtedness or liabilities to the Administrative Agent or any Lender; and (iii)
each of the Administrative Agent and the Lenders has heretofore properly
performed and satisfied in a timely manner all of its obligations to each
Borrower. The Borrowers wish to eliminate any possibility that any past
conditions, acts, omissions, events, circumstances or matters would impair or
otherwise adversely affect any of the Administrative
<PAGE>
                                      -7-

Agent's and the Lenders' rights, interests, contracts, collateral security or
remedies. Therefore, each Borrower unconditionally releases, waives and forever
discharges (A) any and all liabilities, obligations, duties, promises or
indebtedness of any kind of the Administrative Agent or any Lender to any
Borrower, except the obligations to be performed by the Administrative Agent or
any Lender on or after the date hereof as expressly stated in this Agreement,
the Credit Agreement, the Forbearance Agreement and the other Loan Documents,
and (B) all claims, offsets, causes of action, suits or defenses of any kind
whatsoever (if any), whether arising at law or in equity, whether known or
unknown, which any Borrower might otherwise have against the Administrative
Agent, any Lender or any of its directors, officers, employees or agents, in
either case (A) or (B), on account of any condition, act, omission, event,
contract, liability, obligation, indebtedness, claim, cause of action, defense,
circumstance or matter of any kind existing as of the date hereof, or occurring
prior to the date hereof.

      SECTION 8. EFFECTIVE DATE. This Agreement shall be deemed to be effective
as of the date of satisfaction of the last conditions precedent set forth in
Section 3 hereof (the "Effective Date").

                  [Remainder of Page Intentionally Left Blank]
<PAGE>
      IN WITNESS WHEREOF, the undersigned have duly executed this Consent and
Amendment No. 2 to Forbearance Agreement as a sealed instrument as of the date
first set forth above.

                                   TRANSTECHNOLOGY CORPORATION

                                   By:  /s/Joseph F. Spanier
                                        ----------------------------------------
                                        Name:  Joseph F. Spanier
                                        Title: Vice President, Chief
                                               Financial Officer &
                                               Treasurer

                                   TRANSTECHNOLOGY SEEGER-ORBIS GMBH

                                   By:  /s/Michael J. Berthelot
                                        ----------------------------------------
                                        Name:  Michael J. Berthelot
                                        Title: Managing Director

                                   TRANSTECHNOLOGY (GB) LIMITED

                                   By:  /s/Michael J. Berthelot
                                        ----------------------------------------
                                        Name:  Michael J. Berthelot
                                        Title: Director

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Director
<PAGE>
                                   FLEET NATIONAL BANK,
                                   individually, as Administrative Agent and
                                   as Sterling Fronting Bank

                                   By:  /s/Peggy Peckham
                                        ----------------------------------------
                                        Name:  Peggy Peckham
                                        Title: Senior Vice President

                                   BHF-BANK AKTIENGESELLSCHAFT,
                                   as DM Fronting Bank

                                   By:  /s/Constanze Neumann
                                        ----------------------------------------
                                        Name:  Constanze Neumann
                                        Title: Treasurer

                                   By:  /s/Lothar Demuth
                                        ----------------------------------------
                                        Name:  Lothar Demuth
                                        Title: Assistant Treasurer

                                   ABN AMRO BANK N.V., individually and as
                                   Syndication Agent

                                   By:  /s/Parker H. Douglas
                                        ----------------------------------------
                                        Name:  Parker H. Douglas
                                        Title: Group Vice President

                                   By:  /s/Steven C. Wimpenny
                                        ----------------------------------------
                                        Name:  Steven C. Wimpenny
                                        Title: Group Senior Vice President

                                   BANK ONE, NA, individually and as
                                   Documentation Agent

                                   By:  /s/Phillip D. Martin
                                        ----------------------------------------
                                        Name:  Phillip D. Martin
                                        Title: Senior Vice President
<PAGE>
                                   THE BANK OF NEW YORK

                                   By:  /s/Richard J. Baldwin
                                        ----------------------------------------
                                        Name:  Richard J. Baldwin
                                        Title: Vice President

                                   KEY CORPORATE CAPITAL INC.

                                   By:  /s/Mark Kleinhaut
                                        ----------------------------------------
                                        Name:  Mark Kleinhaut
                                        Title: Vice President

                                   THE BANK OF NOVA SCOTIA

                                   By:  /s/Brian S. Allen
                                        ----------------------------------------
                                        Name:  Brian S. Allen
                                        Title: Managing Director

                                   COMERICA BANK

                                   By:  /s/Jeffrey E. Peck
                                        ----------------------------------------
                                        Name:  Jeffrey E. Peck
                                        Title: Vice President

                                   DRESDNER BANK, AG, NEW YORK
                                   AND GRAND CAYMAN BRANCHES

                                   By:  /s/Richard J. Sweeney
                                        ----------------------------------------
                                        Name:  Richard J. Sweeney
                                        Title: Vice President

                                   By:  /s/Thomas R. Brady
                                        ----------------------------------------
                                        Name:  Thomas R. Brady
                                        Title: Vice President
<PAGE>
                                   The Guarantors under (and as defined in) the
                                   Subsidiary Guaranty hereby acknowledge that
                                   they have read and are aware of the
                                   provisions of this Agreement and hereby
                                   reaffirm their absolute and unconditional
                                   guaranty of the Borrowers' payment and
                                   performance of their obligations to the
                                   Lenders and the Administrative Agent under
                                   the Credit Agreement as affected hereby.

                                   TRANSTECHNOLOGY ACQUISITION CORPORATION

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   PALNUT FASTENERS, INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   INDUSTRIAL RETAINING RING COMPANY

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   RETAINERS, INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary
<PAGE>
                                   RANCHO TRANSTECHNOLOGY CORPORATION

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   TRANSTECHNOLOGY SYSTEMS & SERVICES, INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   ELECTRONIC CONNECTIONS AND ASSEMBLIES, INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   SSP INDUSTRIES

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   SSP INTERNATIONAL SALES, INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary
<PAGE>
                                   TRANSTECHNOLOGY SEEGER INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   SEEGER INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   TCR CORPORATION

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   AEROSPACE RIVET MANUFACTURERS CORPORATION

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   NORCO, INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary
<PAGE>
                                   ELLISON RING & WASHER INC.

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   TRANSTECHNOLOGY ENGINEERED
                                   COMPONENTS, LLC

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary

                                   TRANSTECHNOLOGY CANADA CORPORATION

                                   By:  /s/Gerald C. Harvey
                                        ----------------------------------------
                                        Name:  Gerald C. Harvey
                                        Title: Vice President & Secretary
<PAGE>
                                                                       Exhibit A

                                                                   Schedule 3(a)
                                                              Financial Covenant

<TABLE>
<CAPTION>
               Period                          Modified Consolidated EBITDA
               ------                          ----------------------------
<S>                                            <C>
April 1, 2001 through May 31, 2001                      $ 6,700,000
April 1, 2001 through June 30, 2001                     $10,400,000
April 1, 2001 through July 31, 2001                     $11,600,000
April 1, 2001 through August 31, 2001                   $13,650,000
April 1, 2001 through September 30, 2001                $19,000,000
April 1, 2001 through October 31, 2001                  $22,000,000
April 1, 2001 through November 30, 2001                 $25,000,000
April 1, 2001 through December 31, 2001                 $28,000,000
</TABLE>

<PAGE>
                                                                       Exhibit B

                                                                   Schedule 3(a)
                                                              Financial Covenant

<TABLE>
<CAPTION>
               Period                          Modified Consolidated EBITDA
               ------                          ----------------------------
<S>                                            <C>
April 1, 2001 through May 31, 2001                      $ 6,700,000
April 1, 2001 through June 30, 2001                     $10,400,000
April 1, 2001 through July 31, 2001                     $11,600,000
April 1, 2001 through August 31, 2001                   $13,650,000
April 1, 2001 through September 30, 2001                $19,000,000
April 1, 2001 through October 31, 2001                  $20,000,000
April 1, 2001 through November 30, 2001                 $21,500,000
April 1, 2001 through December 31, 2001                 $23,000,000
</TABLE>

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