Document:

Exhibit 10.1

    

    EMPLOYMENT
      AGREEMENT

    between

    ATA
      AIRLINES, INC.,

    ATA
      HOLDINGS CORP.,

    and

    JOHN
      G. DENISON

    

    

    (Effective
      September 1, 2005)

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    EMPLOYMENT
      AGREEMENT

    between

    ATA
      AIRLINES, INC.,

    ATA
      HOLDINGS CORP.,

    and

    JOHN
      G. DENISON

    

    This
      Employment Agreement (“Agreement”)
      is
      made and entered into by and between ATA Airlines, Inc. (“ATA”),
      ATA
      Holdings Corp. (“Holdings”;
      ATA
      and Holdings are referred to jointly and severally as the "Companies"),
      and
      John G. Denison (“Executive”).

     

    Recitals

     

    A.  On
      October 26, 2004, each of the Companies filed with the United States
      Bankruptcy Court for the Southern District of Indiana, Indianapolis Division
      (the "Bankruptcy Court"), its respective voluntary petition for relief under
      Chapter 11 of Title 11 of the United States Code,
      11 U.S.C. §§ 101 et seq.
      as
      amended (the "Bankruptcy Code"; the Chapter 11 cases initiated by these filings
      are collectively called the "Chapter 11 Cases") The Companies each continue
      to
      operate their businesses and manage their properties as debtors-in-possession
      pursuant to the Bankruptcy Code. 

     

    B.  ATA
      and
      Executive are parties to that certain Employment Agreement dated effective
      as of
      February 21, 2005 (the “Initial Employment Agreement”), pursuant to which
      Executive serves as President and Chief Executive Officer of ATA. 

     

    C.  
      The
      Companies desire for Executive to continue to be employed by ATA as its
      President and Chief Executive Officer and also to serve as President and Chief
      Executive Officer of Holdings, all in accordance with the terms of this
      Agreement.

     

    D.  The
      Companies intend to seek confirmation of plans of reorganization as soon as
      feasible, and if possible, by December 31, 2005. Pursuant to the reorganization
      plan confirmed for ATA, Holdings may continue as the sole shareholder of ATA
      or
      a corporation other than Holdings may become the owner and holder of all of
      the
      issued and outstanding capital stock of ATA. The term "New ATA"
      as used
      in this Agreement means the corporation which, after the confirmation of, and
      pursuant to a plan of reorganization for ATA or Holdings in the Chapter 11
      Cases, owns and holds all of the issued and outstanding capital stock of ATA
      and, by whatever means, is or has become the employer of Executive as its Chief
      Executive Officer, or if there is no such corporate owner and employer, then
      the
      term shall mean ATA, as reorganized pursuant to such confirmed plan of
      reorganization. As used in this Agreement: (a) the term "Companies"
      shall
      mean, collectively, ATA and Holdings, except that from and after the
      confirmation of a plan of reorganization for ATA in ATA's Chapter 11 Case,
      the
      term shall mean, collectively, ATA and New ATA; (b) the term "Company"
      shall
      mean any one of the Companies.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Agreement

     

    NOW,
      THEREFORE, in consideration of the foregoing recitals, the mutual promises
      set
      forth in this Agreement, and other good and valuable consideration, the receipt
      and sufficiency of which are hereby acknowledged, the Companies and Executive
      agree as follows:

     

    1.  Effective
      Date. This
      Agreement shall not become effective until it shall have been authorized by
      the
      Bankruptcy Court in the Chapter 11 Cases. Subject to that approval,
      this
      Agreement shall be effective for all purposes as of September 1, 2005
      (the
“Effective
      Date”).
      

     

    2.  Term
      of Employment. The
      term
      of this Agreement shall begin on the Effective Date and continue through
      December 31, 2007, subject, however, to earlier termination as provided in
      Section 8 of this Agreement (the “Term”).

     

    3.  Position
      and Responsibilities. During
      the Term, Executive will serve as President and Chief Executive Officer of
      each
      of the Companies and in such additional executive positions as each of the
      Companies may designate from time to time during the Term. Executive agrees
      to
      perform all of the duties and responsibilities associated with such positions
      as
      well as other duties and responsibilities that may be assigned to Executive
      from
      time to time by the Board of Directors of each of the Companies. In addition,
      Executive's additional duties shall include providing the Board of Directors
      of
      each of the Companies periodic evaluations of the officers of the Companies
      working under Executive’s supervision or review, with a specific view of each
      individual’s qualifications and ability as a potential successor President and
      Chief Executive Officer of the Companies. Executive will report to the
      respective Boards of Directors of the Companies. In recognition of Executive’s
      role as President and Chief Executive Officer, it Executive shall continue
      to
      serve as a member of the Boards of Directors of the Companies during the Term.
      

     

    4.  Location
      and Travel.
      Executive’s employment positions will be based at ATA’s corporate headquarters
      in Indianapolis, Indiana, and Executive will be expected to spend the vast
      majority of his employment time at such headquarters. The Companies understand
      that Executive’s permanent residence is in Dallas, Texas, and the Companies
      acknowledge that Executive may continue to commute weekly or bi-weekly to such
      permanent residence consistent with Executive’s commuting practices during his
      employment under the Initial Employment Agreement, as long as such commuting
      does not interfere unreasonably with the execution of Executive’s duties for the
      Companies. Given Executive’s positions for the Companies and the nature of the
      Companies’ business, the performance of Executive’s duties will entail
      significant travel around North America and occasionally abroad. ATA will
      reimburse Executive for all reasonable and actual travel expenses, subject
      to
      Executive’s compliance with applicable employee travel policies and guidelines
      of the Companies, as in effect from time to time. 

     

    5.  Standard
      of Care. During
      the Term, Executive (a) will devote his full working time, attention, energies
      and skills exclusively to the business and affairs of the Companies; (b) will
      exercise the highest degree of loyalty and the highest standards of conduct
      in
      the performance of his duties; (c) will not, except as noted herein, engage
      in
      any other business activity, whether or not such business activity is pursued
      for gain, profit or other pecuniary advantage, without the express written
      consent of the Companies; and (d) will not take any action that deprives the
      Companies of any business opportunities or otherwise act in a manner that
      conflicts with the best interests of the Companies or that is detrimental to
      the
      business of the Companies; provided, however, this Section 5 shall not be
      construed as preventing Executive (x) from investing his personal assets in
      such
      form or manner as will not require his services in any capacity in the
      operations and affairs of the businesses in which such investments are made,
      or
      (y) from participating in charitable or other not-for-profit activities as
      long
      as such activities do not interfere with Executive’s work for the Companies.

     

     

    
      
        
        

      

      
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    6.  Compensation
      and Benefits. As
      remuneration for all services to be rendered by Executive during the Term
      pursuant to this Agreement, and as consideration for complying with the
      covenants herein, the Companies shall pay and provide to Executive the
      following: 

     

    6.1.  Annual
      Base Salary.
      Executive’s base salary shall be the nominal amount of Three Hundred Fifty
      Thousand Dollars ($350,000) on an annualized basis; provided, however,
      consistent with salary reductions taken by other executives of the Companies,
      the Companies shall pay Executive a reduced base salary of Two Hundred Eighty
      Thousand Dollars ($280,000) on an annualized basis (the “Base
      Salary”)
      unless
      and until Executive and the Companies agree to a different amount. The Companies
      will review the Base Salary on an annual basis to determine any appropriate
      annual increase in Base Salary, based on considerations such as Executive's
      performance, market compensation conditions, the financial performance of the
      Companies and inflation. The Base Salary shall be paid to Executive consistent
      with the Companies customary payroll practices. 

     

    6.2.  Incentive
      Bonus. Executive
      will be eligible to earn annual incentive bonus compensation from the Companies.
      The amount of the incentive bonus compensation, if any, shall be determined
      at
      the discretion of the Board of Directors of New ATA, with Executive not
      participating in the determination. Such annual incentive compensation will
      target 50% to 125% of Executive’s Base Salary and will be based on a combination
      of the achievement by the Companies on a consolidated basis of performance
      goals
      established by the Board of Directors of New ATA prior to the start of the
      calendar year for which the bonus is being determined, as well as such Board’s
      assessment of Executive’s performance as President and Chief Executive Officer
      of the Companies. The first annual incentive bonus compensation will be
      considered in January, 2007, relating to performance during calendar year 2006.
      New ATA also will consider in January, 2008, an incentive bonus for Executive
      relating to performance during calendar year 2007, notwithstanding that the
      term
      of Executive’s employment is to end at December 31, 2007. 

     

     

    
      
        
        

      

      
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    6.3.  Equity
      Participation.
      An
      important part of Executive’s compensation as President and Chief Executive
      Officer of the Companies is to be in the form of equity participation,
      particularly given that Executive has agreed to a below-market annual Base
      Salary under this Agreement. The parties further acknowledge that it is not
      possible at the Effective Date of this Agreement for the parties to specify
      with
      precision the form of such equity participation because, among other reasons,
      the ultimate capital structure and valuation of New ATA upon emergence from
      bankruptcy are not yet known. Accordingly, Executive’s equity participation will
      be determined by mutual agreement at a future time closer to the actual date
      of
      the confirmation of a plan of reorganization and the emergence of ATA from
      bankruptcy, when the issues of capital structure and valuation of New ATA have
      been resolved, provided such equity participation is guided by the following
      principles: (a) the structure and form of Executive’s equity participation will
      align Executive’s long term interests with those of New ATA and its shareholders
      pursuant to which Executive will gain from the increase in shareholder equity
      that is created; (b) Executive’s equity participation will vest ratably over the
      remaining scheduled term of his employment and will vest immediately if New
      ATA
      or ATA terminates Executive’s employment without Cause or if Executive
      terminates his employment because of a Change in Control occurring after ATA’s
      exit from bankruptcy (and not in connection with that exit); (c) the life of
      the
      equity vehicle will be set in a manner to allow Executive to benefit from the
      potential long-term appreciation in New ATA equity. For example, if stock
      options are deployed, such options will have a minimum life of seven (7) years
      and a maximum life of ten (10) years, and Executive will be able to hold all
      vested options for their full term even after Executive is no longer employed
      by
      any of the Companies; (d) the value of the equity participation, over the full
      life of the equity vehicle deployed and as determined by the Black-Scholes
      method, should be set at a level consistent with comparable CEO-level
      appointments (post-bankruptcy and normal course of business) at mid-size
      carriers in the airline industry subject to reasonableness standards; (e) the
      value of the equity participation will also reflect Executive’s assistance to
      ATA in connection with its cost control and reduction efforts by Executive’s
      election to forego the bankruptcy exit bonus that would have been due Executive
      under the Initial Employment Agreement; (f) the strike price for any equity
      vehicle will be equal to the lower of (i) the valuation set forth in the final
      Disclosure Statement issued in connection with the confirmed reorganization
      plan
      for the Companies or (ii) the average closing price of the capital stock of
      New
      ATA over the first thirty (30) days after (A) exit from bankruptcy protection,
      and (B) at least twenty-five percent (25%) of New ATA’s capital stock having
      been distributed, so as to place Executive on the same basis as the shareholders
      of New ATA; and (g) the specific vehicle(s) selected for equity participation
      will reflect the parties’ objective of aligning Executive’s equity participation
      interest with the creation of long-term value for New ATA shareholders while
      serving Executive and New ATA in a tax efficient manner; the parties currently
      believe that the most advantageous vehicle would be stock options. At the
      appropriate juncture during the Term but in no event later than seventy-five
      (75) days after the effective date of a confirmed plan of reorganization of
      ATA
      and/or Holdings (the "Effective Reorganization Date"), the parties agree to
      negotiate and implement an equity participation benefits and awards for
      Executive consistent with the foregoing general principles.

     

    6.4.  Employee
      Benefits. The
      Companies shall provide to Executive and his eligible dependents employee fringe
      benefits to which other employees of the Companies and their eligible dependents
      are generally entitled, subject to the eligibility requirements and other terms
      and conditions of such plans. Nothing contained in this Section shall obligate
      the Companies to institute, maintain or refrain from changing, amending or
      discontinuing any employee fringe benefit plan, so long as such changes are
      similarly applicable to other employees generally. 

     

     

    
      
        
        

      

      
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    6.5.  Vacation.
      Executive shall be entitled to twenty (20) vacation days per year.

     

    6.6.  Relocation
      Benefits.
      If
      Executive relocates his permanent residence to the Indianapolis, Indiana area
      before December 31, 2006, Executive will be entitled to relocation benefits
      in
      accordance with the executive relocation package policy of the Companies, or
      if
      there is more than one, the policy of Holdings.

     

    6.7.  Travel
      Benefits.
      Executive shall be entitled to participate in ATA’s travel benefits program
      subject to the terms and conditions of such program, which program may be
      amended from time to time.

     

    6.8.  Joint
      and Several Obligations.
      All
      compensation, benefit and other commitments, liabilities and obligations of
      the
      Companies to Executive arising under, pursuant to, by virtue of or in connection
      with this Agreement while Executive serves as Chief Executive Officer of the
      Companies shall be the joint and several obligations and liabilities of the
      Companies. If for any reason Executive shall cease to be employed as Chief
      Executive Officer of one of the Companies but continues to be employed as the
      Chief Executive Officer of the other Companies, then the compensation, benefits
      and other commitments, liabilities, and obligations to Executive arising under,
      pursuant to, by virtue of or in connection with this Agreement from and after
      termination of Executive's employment with that one Company shall be joint
      and
      several among such of the Companies as then continue to employ Executive. The
      Companies may elect to allocate among themselves the costs of the employment
      of
      Executive under and pursuant to this Agreement, with the allocation being based
      on whatever factors the Companies mutually determine are appropriate, but in
      the
      absence of such an allocation agreement, all costs of the employment of
      Executive shall be allocated to ATA. As a matter of convenience to the
      Companies, one of the Companies may pay compensation and benefits to Executive
      on behalf of the Companies.

     

    7.  Reimbursement
      of Business Expenses. The
      Companies shall pay or reimburse Executive for all ordinary and necessary
      expenses, in a reasonable amount, which Executive incurs in performing his
      duties under this Agreement. Such expenses shall be paid or reimbursed to
      Executive consistent with the expense reimbursement policies of the Companies
      in
      effect from time to time and Executive agrees to abide by any such expense
      reimbursement policies. 

     

    8.  Termination
      of Employment. 

     

     

    
      
        
        

      

      
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    8.1.  Termination
      Due to Death.
      If
      Executive dies during the Term, this Agreement shall terminate on the date
      of
      Executive’s death. Upon the death of Executive, the obligation to pay and
      provide to Executive compensation and benefits under this Agreement shall
      immediately terminate, except: (a) Executive shall be paid by the Companies
      that portion of his Base Salary, at the rate then in effect, which shall have
      been earned through the termination date; and (b)  Executive shall be
      paid
      or provided by the Companies such other payments and benefits, if any, which
      had
      accrued hereunder before Executive’s death. Other than the foregoing, the
      Companies shall have no further obligations to Executive (or Executive’s estate,
      heirs, executors, administrators and personal representatives) under this
      Agreement. 

     

    8.2.  Termination
      Due to Disability. If
      Executive suffers a Disability, the Companies shall have the right to terminate
      this Agreement and Executive’s employment with the Companies. The Companies
      shall deliver written notice to Executive of the Companies’ termination because
      of Disability, pursuant to this Section 8.2, specifying in such notice
      a
      termination date, and this Agreement and Executive’s employment by the Companies
      shall terminate at the close business on the specified termination date.

     

    Upon
      the
      termination of this Agreement because of Disability, the obligation to pay
      and
      provide to Executive compensation and benefits under this Agreement shall
      immediately terminate, except: (a)  Executive shall be paid by the
      Companies that portion of his Base Salary, at the rate then in effect, which
      shall have been earned through the termination date; and (b)  Executive
      shall be paid or provided by the Companies such other payments and benefits,
      if
      any, which had accrued hereunder before the termination for Disability.

     

    The
      term
“Disability”
      shall
      mean either (i) when Executive is deemed disabled in accordance with
      the
      long-term disability insurance policy or plan, if any, of the Companies in
      effect at the time of the illness or injury causing the disability and under
      which Executive is insured, or if no such policy or plan is in effect,
      (ii) the inability of Executive, because of injury, illness, disease
      or
      bodily or mental infirmity as determined by a physician reasonably acceptable
      to
      the Companies, to perform the essential functions of his job (with or without
      reasonable accommodation) for more than one hundred twenty (120) days during
      any
      period of twelve (12) consecutive months. 

     

    8.3.  Termination
      Without Cause.
      At any
      time during the Term, the Companies may terminate this Agreement and Executive’s
      employment with the Companies without cause for any reason or no reason by
      notifying Executive in writing of the Companies’ intent to terminate, specifying
      in such notice the effective termination date, and this Agreement and
      Executive’s employment with the Companies shall terminate at the close of
      business on the termination date specified in the Companies’ notice. Upon
      termination of Executive’s employment by the Companies without cause, the
      obligation to pay and provide Executive compensation and benefits under this
      Agreement shall immediately terminate, except: (a)  Executive shall
      be paid
      that portion of his Base Salary, at the rate then in effect, which shall have
      been earned through the termination date; (b)  Executive shall be paid
      or
      provided such other payments and benefits, if any, which had accrued hereunder
      before the termination date; (c) the Companies shall pay Executive
      severance compensation in the form of salary continuation at Executive’s Base
      Salary rate, as then in effect, for a period of twelve (12) months following
      the
      termination date; and (d) the Companies shall pay Executive supplemental
      severance compensation consisting of twelve (12) monthly payments each equal
      to
      the sum of (i) an amount equal to the monthly COBRA premium Executive would
      pay
      if he elected to exercise his COBRA rights to continue group health and dental
      insurance coverage for himself and any eligible dependents, and (ii) an amount
      equal to the estimated federal and state tax liability that Executive will
      incur
      as a result of his receipt of the amounts set forth in this subpart (d) so
      that
      such supplemental payments are fully grossed-up (the payments set forth in
      this
      subpart (d) shall hereinafter be referred to as the “Supplemental
      Severance Payments”).
      To
      the extent that the salary continuation payments or the Supplemental Severance
      Payments constitute payments of "deferred compensation" to a "specified
      employee" within the meaning of Internal Revenue Code section 409A(a)(2)(B)(i),
      any such payments due during the first six months following Executive's
      termination date will be delayed and will be paid to Executive on the first
      day
      of the seventh month following his termination date. Other than the foregoing,
      the Companies shall have no further obligations to Executive under this
      Agreement. 

     

     

    
      
        
        

      

      
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    8.4.  Termination
      For Cause. At
      any
      time during the Term, the Companies may terminate this Agreement and Executive’s
      employment with the Companies for “Cause” as provided in this Section 8.4.
      The term “Cause”
      shall
      mean the occurrence of one or more of the following events: (a) Executive’s
      gross or habitual neglect of his employment duties and responsibilities;
      (b) Executive’s conviction of, pleading guilty to, or pleading nolo
      contendere
      or its
      equivalent to, a felony or any crime involving moral turpitude; (c) Executive’s
      engaging in any illegal conduct or willful misconduct in the performance of
      his
      employment duties for any of the Companies (or their affiliates); (d)
      Executive’s engaging in any fraudulent or dishonest conduct in his dealings
      with, or on behalf of, any of the Companies (or their affiliates);
      (e) Executive’s failure or refusal to follow the lawful instructions of the
      Board of Directors of any of the Companies, if such failure or refusal continues
      for a period of five (5) calendar days after the Board of Directors of any
      of
      the Companies delivers to Executive a written notice stating the instructions
      which Executive has failed or refused to follow; (f) Executive’s breach of his
      obligations under this Agreement; (g) Executive’s gross negligence in the
      performance of his employment duties under this Agreement; or (h) Executive’s
      misuse of alcohol or drugs which interferes materially with the performance
      of
      Executive’s employment duties for any of the Companies. 

     

    Upon
      the
      occurrence of any of the events specified above, the Companies may terminate
      Executive’s employment for Cause by notifying Executive in writing of its
      decision to terminate his employment for Cause, and Executive’s employment and
      this Agreement shall terminate at the close of business on the date on which
      the
      Companies give such notice. 

     

    Upon
      termination of Executive’s employment by the Companies for Cause, the obligation
      to pay or provide Executive compensation and benefits under this Agreement
      shall
      terminate, except: (a)  Executive shall be paid that portion of his
      Base
      Salary, at the rate then in effect, which shall have been earned through the
      termination date; and (b)  Executive shall be paid or provided such
      other
      payments or benefits, if any, which had accrued hereunder before the termination
      date. 

     

     

    
      
        
        

      

      
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    8.5.  Termination
      by Executive Without Good Reason. At
      any
      time during the Term, Executive may terminate his employment without Good Reason
      by giving the Companies at least ninety (90) calendar days written notice of
      termination without Good Reason. Upon termination of Executive’s employment by
      Executive without Good Reason, the obligation to pay or provide Executive
      compensation and benefits under this Agreement shall terminate, except: (a)
      Executive shall be paid that portion of his Base Salary, at the rate then in
      effect, which shall have been earned through the termination date; and (b)
      Executive shall be paid or provided such other payments or benefits, if any,
      which had accrued hereunder before the termination date. 

     

    8.6.  Termination
      by Executive for Good Reason.
      At any
      time during the Term, Executive may terminate his employment with the Companies
      for Good Reason by giving the Companies written notice of termination for Good
      Reason. For purposes of this Agreement, the term “Good
      Reason”
      shall
      mean any of the following:

     

    (a)  any
      material breach by any of the Companies of any provision of this Agreement
      which
      is not cured by the breaching Company within ten (10) business days of receipt
      by that Company of written notice from Executive specifying with particularity
      the existence and nature of the breach; or

     

    (b)  Executive’s
      termination of his employment for any reason within three (3) months immediately
      following a Change in Control.

     

    If
      this
      Agreement and Executive’s employment are terminated by Executive for Good Reason
      pursuant to this Section 8.6, the obligation to pay or provide Executive
      compensation and benefits under this Agreement shall terminate,
      except:  (a)  Executive shall be paid that portion of
      his Base
      Salary, at the rate then in effect, which shall have been earned through the
      termination date; (b)  Executive shall be paid or provided such other
      payments or benefits, if any, which had accrued hereunder before the termination
      date; (c) the Companies shall pay Executive severance compensation in
      the
      form of salary continuation payments at Executive’s Base Salary rate, at the
      rate then in effect, for a period of twelve (12) months following the
      termination date; and (d) the Companies shall pay Executive the Supplemental
      Severance Payments. To the extent that the salary continuation payments or
      the
      Supplemental Severance Payments constitute payments of "deferred compensation"
      to a "specified employee" within the meaning of Internal Revenue Code section
      409A(a)(2)(B)(i), any such payments due during the first six months following
      Executive's termination date will be delayed and will be paid to Executive
      on
      the first day of the seventh month following his termination date.

     

    8.7.  Definition
      of Change in Control.
      For
      purposes of this Agreement, the term “Change in Control” means and shall be
      deemed to have occurred upon the occurrence of any one or more of the
      following:

     

     

    
      
        
        

      

      
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    (a)  entry
      by
      the Court in the Bankruptcy Proceeding of a final, non-appealable order
      confirming a plan of reorganization of both or either of the
      Companies;

     

    (b)  consummation
      of a sale or other disposition of all or substantially all of the assets of
      ATA,
      or of all of the issued and outstanding capital stock of ATA which is now owned
      by Holdings, other than to New ATA;

     

    (c)  following
      the confirmation of a plan of reorganization for ATA, and not pursuant to such
      plan, the acquisition by any individual, entity, or group of beneficial
      ownership of more than percent (50%) of the outstanding equity interests of
      ATA
      or New ATA; 

     

    (d)  a
      majority of the members of the Board of Directors of New ATA or ATA are not
      Continuing Directors; or 

     

    (e)  following
      the confirmation of a plan of reorganization for ATA, and not pursuant to such
      plan, there shall occur a consummation of a plan of merger or consolidation
      involving ATA or New ATA pursuant to which after the merger or consolidation
      more than fifty percent (50%) of the equity interests of the surviving entity
      is
      owned or controlled by a person or entity other than New ATA.

     

    As
      used
      above, the term "Continuing Directors"
      means,
      as of any date of determination, any member of the board of directors of ATA
      or
      New ATA who (i) was a member of such board of directors thirty (30) days
      following the date on which a confirmed plan of reorganization for ATA, as
      confirmed in the Chapter 11 case, becomes effective, or (ii) was nominated
      for
      election or elected to such board of directors by a majority of the Continuing
      Directors who were members of such Board at the time of such nomination or
      election.

     

    8.8.  Severance
      Release.
      Executive acknowledges and agrees that as a condition to receiving any of the
      severance compensation (including the Supplemental Severance Payments) pursuant
      to Section 8.3 or 8.6 of this Agreement (such severance compensation
      being
      collectively referred to as the "Severance
      Compensation"),
      Executive shall execute and deliver to the Companies a Release Agreement in
      form
      and substance reasonably satisfactory to the Companies pursuant to which
      Executive releases and waives any and all claims against the Companies and
      their
      affiliates arising out of this Agreement, Executive’s employment with the
      Companies, Executive’s work for the Companies or their affiliates and/or the
      termination of Executive’s employment with the Companies; provided, however,
      that such Release Agreement shall not affect or relinquish (a) any vested
      rights Executive may have under any insurance or other employee benefit plans
      sponsored by any of the Companies, (b) any claims for salary or other
      compensation earned by Executive prior to the employment termination date;
      (c) any claims for reimbursement of business expenses incurred prior
      to the
      employment termination date, (d) any rights to Severance Compensation;
      or
      (e) Executive's rights to indemnification pursuant to Section 12 of this
      Agreement or by law. In the event Executive dies during the period he is
      receiving any Severance Compensation, the Companies' obligation to pay such
      Severance Compensation shall not terminate, and the unpaid portion of such
      Severance Compensation shall be paid in a lump sum to Executive's estate as
      soon
      as administratively feasible.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    8.9.  Resignation
      as Officer and/or Director Upon Employment Termination.
      In the
      event Executive’s employment with the Companies terminates for any reason
      (including, without limitation, pursuant to Sections 8.1 - 8.6 herein),
      Executive agrees and covenants that he will immediately resign any and all
      positions, including, without limitation, as an officer and/or member of the
      Board of Directors or any other governing boards, he may hold with the Companies
      or any of their affiliates. 

     

    8.10.  No
      Duplication.
      Executive acknowledges that, unless otherwise provided for in any policy or
      plan
      governing severance benefits for employees of either of the Companies, including
      Executive, Executive shall be entitled only to the Severance Compensation as
      a
      severance benefit related to his employment under this Agreement.

     

    9.  Non-Disclosure.
      Executive
      acknowledges that during the course of Executive’s employment with the Companies
      Executive will be creating, making use of, acquiring, and/or adding to
      confidential information relating to the business and affairs of the Companies
      (and their affiliates), which information will include, without limitation,
      procedures, methods, manuals, lists of customers, suppliers and other contacts,
      sales and other reports, marketing plans, business plans, financial data, and
      personnel information. Executive covenants and agrees that Executive shall
      not,
      at any time during Executive’s employment with the Companies or thereafter at
      any time, directly or indirectly, use, divulge or disclose for any purpose
      whatsoever any of the Companies’ (or their affiliates’) confidential information
      or trade secrets, except in the course of Executive’s work for and on behalf of
      the Companies (or their affiliates). During Executive’s employment by the
      Companies, any inventions, new devices or procedures, as well as any patent,
      copyright or trademark applications filed, or patents, copyrights or trademarks
      obtained, as a result of Executive’s efforts on behalf of the Companies (or any
      of their affiliates) shall belong and inure to the exclusive benefit of the
      Companies. Upon the termination of Executive’s employment with the Companies, or
      at any of the Companies’ request, Executive shall immediately deliver to the
      Companies any and all records, documents, or electronic data (in whatever form
      or media), and all copies thereof, in Executive’s possession or under
      Executive’s control, whether prepared by Executive or others, containing
      confidential information or trade secrets relating to the Companies (or their
      affiliates). Executive acknowledges and agrees that his obligations under this
      Section shall survive the expiration or termination of this Agreement and the
      cessation of his employment with the Companies for whatever reason.

     

    10.  Restrictive
      Covenants. Executive
      acknowledges that in connection with his employment with the Companies, he
      will
      provide executive-level services that are of a unique and special value and
      that
      he will be entrusted with confidential and proprietary information concerning
      the Companies and their affiliates. Executive further acknowledges that the
      Companies and their affiliates are engaged in highly competitive businesses
      and
      that the Companies and their affiliates expend substantial amounts of time,
      money and effort to develop trade secrets, business strategies, customer
      relationships, employee relationships and goodwill. Therefore, as an essential
      part of this Agreement, Executive agrees and covenants to comply with the
      following restrictive covenants.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    10.1.  Non-Competition.
      Executive agrees to comply with the non-competition covenants set forth in
      this
      Section 10.1. Executive may at any time waive his right to receive Severance
      Compensation (including during the period that he is receiving Severance
      Compensation) by notifying ATA in writing of such waiver, at which point
      Executive will no longer be entitled to receive any further Severance
      Compensation and Executive will no longer be bound by the non-competition
      covenants set forth in Section 10.1 of this Agreement. If Executive violates
      any
      of the non-competition covenants set forth in Section 10.1 of this Agreement,
      Executive will not be entitled to payment of any further Severance Compensation.
      

     

    (a)  During
      the term of Executive’s employment with the Companies under this Agreement and
      thereafter during the period that Executive is actually receiving Severance
      Compensation after the termination of such employment (the "Post-Termination
      Period"),
      Executive will not own, manage, operate, control, invest in, lend to, acquire
      an
      interest in, or otherwise engage or participate in (whether as an employee,
      independent contractor, consultant, partner, shareholder, joint venturer,
      investor or any other type of participant), or use or permit Executive’s name to
      be used in, any business which competes with any Business (as defined below).
      For purposes of clarity, if this Agreement terminates and Executive is not
      to
      receive Severance Compensation following such termination, the non-competition
      covenants in this Section 10.1 shall no longer be in effect. Further, if
      following a termination of this Agreement Executive is to be receiving Severance
      Compensation but the Companies default in its payment following ten (10) days'
      written notice to the Companies from Executive, the non-competition covenants
      in
      this Section 10.1 shall expire and shall no longer be in effect. 

     

    (b)  During
      Executive’s employment under this Agreement and thereafter during the
      Post-Termination Period, Executive will not within the Restricted Geographic
      Territory own, manage, operate, control, invest in, lend to, acquire an interest
      in, or otherwise engage or participate in (whether as an employee, independent
      contractor, consultant, partner, shareholder, joint venturer, investor or any
      other type of participant), or use or permit Executive’s name to be used in, any
      business which competes with any Business. The parties acknowledge and agree
      that the Business is generally located at least within the Restricted Geographic
      Territory, extends throughout the Restricted Geographic Territory and is not
      limited to any particular region of the Restricted Geographic Territory.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (c)  During
      Executive’s employment under this Agreement and thereafter during the
      Post-Termination Period, Executive will not within the Restricted Geographic
      Territory own, manage, operate, control, invest in, lend to, acquire an interest
      in, or otherwise engage or participate in (whether as an employee, independent
      contractor, consultant, partner, shareholder, joint venturer, investor or any
      other type of participant), or use or permit Executive’s name to be used in, any
      business which competes with any Business, as such Business existed during
      Executive’s employment with ATA and as of the termination of Executive’s
      employment with ATA.

     

    (d)  During
      Executive’s employment under this Agreement and thereafter during the
      Post-Termination Period, Executive will not within the Restricted Geographic
      Territory own, manage, operate, control, invest in, lend to, acquire an interest
      in, or otherwise engage or participate in (whether as an employee, independent
      contractor, consultant, partner, shareholder, joint venturer, investor or any
      other type of participant) or use or permit Executive’s name to be used in, any
      business which competes with any charter or scheduled service commercial air
      carrier routes flown by ATA as such existed during Executive’s employment with
      ATA and as of the termination of Executive’s employment with ATA.

     

    (e)  Notwithstanding
      the provisions of Sections 10.1(a), 10.1(b), 10.1(c), and 10.1(d) hereof, the
      parties agree that Executive is not prohibited from owning for investment
      purposes securities of any public company provided such ownership does not
      exceed five percent (5%) of any class of securities of such public
      company.

     

    (f)  Notwithstanding
      the provisions of Sections 10.1(a), 10.1(b), 10.1(c), and 10.1(d) hereof, the
      parties agree that during the Post-Termination Period, Executive may be employed
      by or render services to Southwest Airlines Co. or any of its subsidiaries,
      without limitation, and also to any entity that owns at least ten percent (10%)
      of one of the Companies, if Executive’s principal function for such entity is to
      assist in monitoring, and counseling such entity with respect to, its investment
      in both or either of the Companies.

     

    (g)  For
      purposes of this Agreement, the term “Business”
      means,
      collectively, the sale or provision of air carrier services certified by the
      Federal Aviation Association (“FAA”)
      or
      United States Department of Transportation (“DOT”),
      non-military charter and air taxi services, military charter services to the
      United States’ military, cargo services, wet leasing or any other business
      conducted by either of the Companies as such business existed at any time during
      Executive’s employment with either of the Companies and as of the termination of
      such employment. For purposes of this Agreement, the term “Restricted
      Geographic Territory”
      means
      (i) the geographic area of the continental United States plus the State
      of
      Hawaii plus any geographic area within a 100-mile radius of any destination
      in
      the world to which ATA has flown commercial airline passengers at any time
      during Executive’s employment with either of the Companies; (ii) the
      geographic area of the continental United States, plus the State of Hawaii,
      plus
      any geographic area within a 50-mile radius of any destination in the world
      to
      which ATA has flown United States’ military charters at any time during the
      Executive’s employment with either of the Companies; and (iii) any
      additional geographic areas in which either of the Companies sold or solicited
      or marketed the sale of any aspect of its Business at any time during
      Executive’s employment with either of the Companies.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    10.2.  Non-Solicitation
      of Employees.
      During
      the term of Executive’s employment under this Agreement and for a period of one
      (1) year immediately after the termination of such employment, Executive will
      not solicit, recruit, hire, employ or attempt to hire or employ any person
      who
      is then an employee of any of the Companies, or was employed by either of the
      Companies within the one (1) year period immediately prior to termination
      of Executive's employment under this Agreement, or urge, influence, induce
      or
      seek to induce any employee of any of the Companies to terminate such employee's
      relationship with either of the Companies. 

     

    10.3.  Non-Interference
      With Contractors and Vendors.
      During
      the term of Executive’s employment under this Agreement and for a period of one
      (1) year immediately after the termination of such employment, Executive will
      not urge, induce or seek to induce any of the Companies’ independent
      contractors, subcontractors, consultants, vendors, suppliers or lessors to
      terminate their relationship with, or representation of, any of the Companies
      or
      to cancel, withdraw, reduce, limit, or in any manner modify any of such person’s
      or entity’s business with, or representation of, any of the Companies.

     

    10.4.  Direct
      or Indirect Activities. Executive
      acknowledges and agrees that the covenants contained in Sections 9 and 10
      prohibit Executive from engaging in certain activities directly or indirectly,
      whether on Executive’s own behalf or on behalf of any other person or entity,
      and regardless of the capacity in which Executive is acting, including without
      limitation as an employee, independent contractor, owner, partner, officer,
      agent, consultant, or advisor.

     

    10.5.  Survival
      of Restrictive Covenants. Executive
      acknowledges and agrees that his obligations under Sections 9 and 10 of this
      Agreement shall survive the expiration or termination of this Agreement and
      the
      cessation of his employment with the Companies for whatever reason.

     

    10.6.  Severability;
      Modification of Restrictions.
      The
      covenants and restrictions in Sections 9 and 10 of this Agreement are separate
      and divisible, and to the extent any covenant, provision or portion of Sections
      9 and 10 of this Agreement is determined to be unenforceable or invalid for
      any
      reason, such unenforceability or invalidity shall not affect the enforceability
      or validity of the remainder of Sections 9 and 10 of this Agreement. If any
      particular covenant, provision or portion of Sections 9 and 10 is determined
      to
      be unreasonable for unenforceable for any reason, such covenant, provision
      or
      portion thereof shall automatically be deemed reformed such that the contested
      covenant, provision or portion will have the closest effect permitted by
      applicable law to the original form and shall be given effect and enforced
      as so
      reformed to whatever extent would be reasonable and enforceable under applicable
      law. The parties agree that any court interpreting any of the restrictions
      and
      covenants contained in Sections 9 and 10 of this Agreement shall, if necessary,
      reform any such covenant to make it enforceable under applicable
      law.

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    11.  Remedies.
      Executive recognizes that a breach or threatened breach by Executive of Sections
      9 or 10 of this Agreement will give rise to irreparable injury to the Companies
      and that money damages will not be adequate relief for such injury and,
      accordingly, Executive agrees that the Companies shall be entitled to obtain
      injunctive relief, including, but not limited to, temporary restraining orders,
      preliminary injunctions and/or permanent injunctions, without having to post
      any
      bond or other security, to restrain or prohibit such breach or threatened
      breach, in addition to any other legal remedies which may be available,
      including without limitations, the cessation of payments and benefits under
      this
      Agreement and recovery of money damages.

     

    12.  Indemnification.

     

    (a)  The
      Companies shall indemnify Executive against all Liability and Expense that
      may
      be incurred by him in connection with or resulting from any Claim to the fullest
      extent authorized or permitted by law, as the same exists or may hereafter
      be
      amended (but in the case of any such amendment, only to the extent that such
      amendment permits the Companies to provide broader indemnification rights than
      such law permitted the Companies to provide prior to such amendment), or
      otherwise consistent with the public policy of the State of Indiana. In
      furtherance of the foregoing, and not by way of limitation, Executive shall
      be
      indemnified by the Companies against all Liability and reasonable Expense that
      may be incurred by him in connection with or resulting from any Claim,
      (1) if Executive is Wholly Successful with respect to the Claim, or
      (2) if not Wholly Successful, then if Executive is determined, as provided
      in either subsection (e) or (f) below, to have acted in good faith, in what
      he
      reasonably believed to be the best interests of the Companies or at least not
      opposed to its best interests and, in addition, with respect to any criminal
      claim is determined to have had reasonable cause to believe that his conduct
      was
      lawful or had no reasonable cause to believe that his conduct was unlawful.
      The
      termination of any Claim, by judgment, order, settlement (whether with or
      without court approval), or conviction or upon a plea of guilty or of nolo
      contendere, or its equivalent, shall not create a presumption that Executive
      did
      not meet the standards of conduct set forth in clause (2) of this
      subsection (a). 

     

    (b)  The
      term
“Claim”
      as used
      in this Section shall include every pending, threatened, or completed claim,
      action, suit, or proceeding and all appeals thereof (whether brought by or
      in
      the right of any of the Companies or otherwise), civil, criminal,
      administrative, or investigative, formal or informal, in which Executive may
      become involved, as a party or otherwise:

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	(1)  	
              by
                reason of his or her being or having been an officer or employee
                of any of
                the Companies, or

            

    

     

    
      	(2)  	
              by
                reason of any action taken or not taken by him in his capacity as
                an
                officer or employee of any of the Companies, whether or not he continued
                in such capacity at the time such Liability or Expense shall have
                been
                incurred.

            

    

     

    (c)  The
      terms
“Liability”
      and
“Expense”
      as used
      in this Section  shall include, but shall not be limited to, counsel
      fees
      and disbursements and amounts of judgments, fines, or penalties against
      (including excise taxes assessed with respect to an employee benefit plan),
      and
      amounts paid in settlement by or on behalf of Executive.

     

    (d)  The
      term
“Wholly Successful”
      as used
      in this Section shall mean (1) termination of any Claim, whether on
      the
      merits or otherwise, against Executive in question without any finding of
      liability or guilt against him, (2) approval by a court, with knowledge
      of
      the indemnity herein provided, of a settlement of any Claim, or (3) the
      expiration of a reasonable period of time after the making or threatened making
      of any Claim without the institution of the same, without any payment or promise
      made to induce a settlement.

     

    (e)  If
      Executive is claiming indemnification hereunder (other than if Executive has
      been Wholly Successful with respect to any Claim), Executive shall be entitled
      to indemnification (1) if special independent legal counsel, which may
      be
      regular counsel of the Companies, or other disinterested person or persons,
      in
      either case selected by the Board of Directors of the Companies (such counsel
      or
      person or persons being hereinafter called the “Referee”),
      shall
      deliver to the Companies a written finding that Executive has met the standards
      of conduct set forth in subsection (a)(2) above, and (2) if the Board
      of
      Directors of any of the Companies, acting upon such written finding, so
      determines. Such Board of Directors shall, if Executive is found to be entitled
      to indemnification pursuant to the preceding sentence, also determine the
      reasonableness of Executive’s Expenses. Executive shall, if requested, appear
      before the Referee, answer questions that the Referee deems relevant and shall
      be given ample opportunity to present to the Referee evidence upon which
      Executive relies for indemnification. The Companies shall, at the request of
      the
      Referee, make available facts, opinions, or other evidence in any way relevant
      to the Referee’s findings that are within the possession or control of the
      Companies.

     

    (f)  If
      Executive is claiming indemnification pursuant to subsection (e) above and
      if
      the Board of Directors fails to select a Referee within a reasonable amount
      of
      time following a written request of Executive for the selection of a Referee,
      or
      if the Referee or the Board of Directors fails to make a determination under
      subsection (e) above within a reasonable amount of time following the selection
      of a Referee, Executive may apply for indemnification with respect to a Claim
      to
      a court of competent jurisdiction, including a court in which the Claim is
      pending against Executive. On receipt of an application, the court, after giving
      notice to the Companies and giving the Companies opportunity to present to
      the
      court any information or evidence relating to the claim for indemnification
      that
      the Companies deems appropriate, may order indemnification if it determines
      that
      Executive is entitled to indemnification with respect to the Claim because
      Executive met the standards of conduct set forth in subsection (a)(2) above.
      If
      the court determines that Executive is entitled to indemnification, the court
      shall also determine the reasonableness of Executive’s Expenses.

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (g)  Expenses
      incurred by Executive in defending any Claim shall be paid by the Companies
      in
      advance of the final disposition of such Claim promptly as they are incurred
      upon receipt of an undertaking by or on behalf of Executive to repay such amount
      if he is determined not to be entitled to indemnification. 

     

    (h)  The
      rights of indemnification and advancement of Expenses provided in this Section
      shall be in addition to any rights to which Executive may otherwise be entitled,
      provided that the Companies shall not be obligated to make any payment in
      connection with a Claim to the extent Executive has received payment of such
      amount from another source, including without limitation any insurer.

     

    (i)  The
      provisions of this Section shall be applicable to Claims made or commenced
      after
      the date of this Agreement, whether arising from acts or omissions to act
      occurring before or after the date of this Agreement.

     

    (j)  If
      this
      Section or any portion hereof shall be invalidated on any ground by any court
      of
      competent jurisdiction, then the Companies shall nevertheless indemnify
      Executive as to costs, charges and expenses (including attorneys’ fees),
      judgments, fines and amounts paid in settlement with respect to any action,
      suit
      or proceeding, whether civil, criminal, administrative or investigative,
      including an action by or in the right of the Companies, to the fullest extent
      permitted by any applicable portion of this Section that shall not have been
      invalidated and to the fullest extent permitted by applicable law.

     

    13.  Assignment.
      

     

    13.1.  Assignment
      by the Companies.
      The
      Companies shall have the right to assign this Agreement, and this Agreement
      shall inure to the benefit of, and may be enforced by, any and all successors
      and assigns of the Companies, including without limitation by asset assignment,
      stock sale, merger, consolidation or other corporate reorganization.

     

    13.2.  Non-Assignment
      by Executive. The
      services to be provided by Executive to the Companies hereunder are personal
      to
      Executive, and Executive’s duties may not be assigned by Executive.

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    14.  Notice.
      Any
      notice required or permitted under this Agreement shall be in writing and either
      delivered personally or sent by nationally recognized overnight courier, express
      mail, or certified or registered mail, postage prepaid, return receipt
      requested, at the following respective address unless the party notifies the
      other party in writing of a change of address:

     

    If
      to any
      of the Companies:

    

    ATA
      Airlines, Inc.

    7337
      West
      Washington Street

    P.O.
      Box
      51609

    Indianapolis,
      Indiana 46231-1300

    Attention:
      Brian Hunt, Senior Vice President and General Counsel

    

    If
      to
      Executive:

    

    John
      G.
      Denison

    _____________________________________

    _____________________________________

    

    A
      notice
      delivered personally shall be deemed delivered and effective as of the date
      of
      delivery. A notice sent by overnight courier or express mail shall be deemed
      delivered and effective one (1) day after it is deposited with the postal
      authority or commercial carrier. A notice sent by certified or registered mail
      shall be deemed delivered and effective two (2) days after it is deposited
      with
      the postal authority.

     

    15.  Miscellaneous.
      

     

    15.1.  Entire
      Agreement and Cancellation of Initial Employment Agreement.
      This
      Agreement supersedes any prior agreements or understandings, oral or written,
      between the parties hereto, with respect to the subject matter hereof, and
      constitutes the entire agreement of the parties with respect thereto. ATA and
      Executive acknowledge and agree that this Agreement supersedes and cancels
      the
      Initial Employment Agreement for all purposes. In addition, an earlier version
      of this Agreement bearing the same date is rescinded and cancelled, the same
      as
      if it had not been executed.

     

    15.2.  Modification.
      This
      Agreement shall not be varied, altered, modified, canceled, changed, or in
      any
      way amended except by mutual agreement of the parties in a written instrument
      executed by Executive and the Boards of Directors of ATA and Holdings.

     

    15.3.  Counterparts.
      This
      Agreement may be executed in one (1) or more counterparts, each of which shall
      be deemed to be an original, but all of which together will constitute one
      and
      the same Agreement. 

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    15.4.  Tax
      Withholding. The
      Companies may withhold from any compensation or benefits payable under this
      Agreement all federal, state, city, or other taxes as may be required pursuant
      to any law or governmental regulation or ruling.

     

    15.5.  Contractual
      Rights to Benefits.
      Nothing
      herein contained shall require or be deemed to require, or prohibit or be deemed
      to prohibit, the Companies to segregate, earmark or otherwise set aside any
      funds or other assets, in trust or otherwise, to provide for any payments to
      be
      made or required hereunder. 

     

    15.6.  Employment
      Policies.
      Executive agrees to abide by any employment rules or policies applicable to
      ATA’s employees generally that ATA currently has or may adopt, amend or
      implement from time to time during Executive’s employment under this Agreement.

     

    15.7.  No
      Waiver.
      Failure
      to insist upon strict compliance with any of the terms, covenants or conditions
      of this Agreement shall not be deemed a waiver of such term, covenant or
      condition, nor shall any waiver or relinquishment of any right or power
      hereunder at any one or more times be deemed a waiver or relinquishment of
      such
      right or power at any other time or times.

     

    15.8.  Code
      Section 409A Standards.
      The
      Agreement and all forms of compensation and benefits to be provided under the
      Agreement Plan shall be interpreted, applied, and effected in a manner
      consistent with the standards for nonqualified deferred compensation plans
      established by Internal Revenue Code Section 409A and its interpretive
      regulations (the "Section 409A Standards"). To the extent that any terms of
      the
      Agreement provide for payments that would subject Executive to gross income
      inclusion, interest, or additional tax pursuant to Internal Revenue Code Section
      409A, those terms are to that extent superseded by the applicable Section 409A
      Standards.

     

    15.9.  Governing
      Law; Choice of Forum.
      To the
      extent not preempted by federal law, the provisions of this Agreement shall
      be
      construed and enforced in accordance with the laws of the State of Indiana,
      notwithstanding any state’s choice-of-law or conflicts-of-law rules to the
      contrary. This Agreement is intended, among other things, to supplement the
      provisions of the Uniform Trade Secrets Act, as amended from time to time,
      and
      the duties Executive owes to the Companies under the common law, including,
      but
      not limited to, the duty of loyalty. The parties agree that any legal action
      relating to this Agreement shall be commenced and maintained exclusively before
      any appropriate state court of record in Marion County, Indiana, or in the
      United States District Court for the Southern District of Indiana, Indianapolis
      Division, and the parties hereby irrevocably consent and submit to the
      jurisdiction and venue of such courts and waive any right to challenge or
      otherwise object to personal jurisdiction or venue in any action commenced
      or
      maintained in such courts.

     

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      ON FOLLOWING PAGE; REMAINDER OF PAGE

    INTENTIONALLY
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        18

        
          

        

      

      
        
        

      

    

     

    

    
       

       

       

    

    

    IN
      WITNESS WHEREOF, ATA, Holdings, and Executive have executed this Agreement,
      intending it to be effective as provided in Section 1 of this
      Agreement.

     

    ATA
      AIRLINES, INC.

    

    

    By:
      _______/s/ Brian T. Hunt______________________

    Name:
      ______Brian T. Hunt_______________________

    

    Title:
      ____Vice President and General Counsel__________

    

    

    ATA
      HOLDINGS CORP.

    

    

    
      By:_______/s/
        Brian T. Hunt______________________

      Name:
        ______Brian T. Hunt_______________________

      

      Title:
        ____Vice President and General Counsel__________

    

     

    

    EXECUTIVE

    

    /s/
      John G.
      Denison                                      
      
John
      G.
      Denison

    

    

    
      
         

      

      
        19Exhibit 4.2

 

	
 

		
	

		
	

		
	
Moog Inc.

		
	

		
	 
	
6.250% SENIOR SUBORDINATED NOTES DUE 2015

		
	

		
	 	 	 
	 
	
FIRST SUPPLEMENT 

		
	

		
	 
	
Dated as of September 12, 2005 

		
	 
	

		
	
To the Indenture Dated as of January 10, 2005

		
	 	 	 
	

		
	

		
	
JPMorgan Chase Bank, N.A.

		
	

Trustee 

		
	 	 	 
	 

        FIRST SUPPLEMENT ("First Supplement"), dated as of September 12, 2005, to the
Indenture, dated as of January 10, 2005, between Moog Inc., a New York
corporation (the "Company") and JPMorgan Chase Bank, N.A., a national banking
association, as trustee (the "Trustee").

WITNESSETH

        WHEREAS, the Company and the Trustee have entered into an Indenture, dated as
of January 10, 2005 (the "Existing Indenture") governing the Company's 6.250%
Senior Subordinated Notes due 2015 (the "Notes"); 

        WHEREAS, Section 9.01 of the Indenture provides, among other things, that the
Company may amend the Existing Indenture to (1) cure any ambiguity, defect or
inconsistency, (2) make any change that would provide any additional rights or
benefits to the Holders of the Notes (including additional Note Guarantees or
Liens securing the Notes) or that does not materially adversely affect the
rights under the Indenture of any such Holder and (3) provide for the issuance
of Additional Notes in accordance with the Existing Indenture; and

        WHEREAS, the Company desires to amend the Existing Indenture to provide for
the issuance of Additional Notes that will not be registered under the
Securities Act of 1993, as amended (the "Securities Act"), at the time of
issuance but which may be registered under the Securities Act at a later date
and, in connection therewith, to make certain other changes to the Existing
Indenture that will not materially adversely effect the rights under Existing
Indenture of any Holder. 

        NOW, THEREFORE, in consideration of the foregoing, the parties hereto, for
the benefit of each other and for the equal and proportionate benefit of all
Persons who are now or hereafter become Holders of Notes, hereby enter into this
First Supplement and agree as follows: 

Section 1. DEFINITIONS. 

        (a) Capitalized Terms. Capitalized terms used herein without definition shall
have the meanings assigned to them in the Existing Indenture. 

        (b) For all purposes of this First Supplement, except as otherwise herein
expressly provided or unless the context otherwise requires: (i) the terms and
expressions used herein shall have the same meanings as corresponding terms and
expressions used in the Existing Indenture; and (ii) the words "herein,"
"hereof" and "hereby" and other words of similar import used in this First
Supplement refer to this First Supplement as a whole and not to any particular
section hereof. 

Section 2. CHANGES TO CERTAIN PROVISIONS

        Certain provisions of the Existing Indenture are amended or deleted as
follows:

        (a) Amendments to Article One

-2-

        The following definitions shall be added to Section 1.01 and replace any
existing definitions (as applicable) in the Existing Indenture prior to the date
hereof:

        "144A Global Note" means a global note substantially in the form of 
Exhibit A bearing the Global Note Legend and the Private Placement Legend
and deposited with or on behalf of, and registered in the name of, the
Depository or its nominee, that shall be issued in a denomination equal to the
outstanding principal amount at maturity of the Notes sold in reliance on Rule
144A.

        "Additional Interest" means all additional interest owing on the Notes
pursuant to the Registration Rights Agreement.

        "Broker-Dealer" has the meaning set forth in the Registration Rights
Agreement.

        "Clearstream" means Clearstream Banking S.A. and any successor
thereto.

        "Euroclear" means Euroclear Bank S.A./N.V., as operator of the
Euroclear system, and any successor thereto.

        "Exchange Notes" means the Notes issued in the Exchange Offer in
accordance with Section 2.07(f).

        "Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.

        "Exchange Offer Registration Statement" has the meaning set forth in
the Registration Rights Agreement.

        "Existing Indenture" means the Indenture, dated as of January 10, 2005,
between the Company and the Trustee.

        "First Supplement" means the First Supplement, dated September 12, 2005,
to the Existing Indenture.

        "Global Notes" means, individually and collectively, each of the
Restricted Global Notes and the Unrestricted Global Notes, substantially in the
form of Exhibit A, issued in accordance with Section 2.01 or Section
2.07.

        "Initial Purchaser" has the meaning set forth in the Registration
Rights Agreement.

        "Institutional Accredited Investor" means an institution that is an
"accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act, which is not also a QIB.

        "Legended Regulation S Global Note" means a global Note in the form of
Exhibit A bearing the Global Note Legend and the Private Placement Legend
and deposited with or on behalf of and registered in the name of the Depository
or its nominee, issued in a 

-3-

denomination equal to the outstanding principal
amount at maturity of the Notes initially sold in reliance on Rule 903 of
Regulation S.

        "Letter of Transmittal" means the letter of transmittal to be prepared
by the Company and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

        "Private Placement Legend" means the legend set forth in Section
2.07(g)(i) to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.

        "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

        "Registration Rights Agreement" means any registration rights
agreement between the Company and the other parties thereto relating to the
registration of Additional Notes under the Securities Act.

        "Regulation S" means Regulation S promulgated under the Securities
Act.

        "Regulation S Global Note" means a Legended Regulation S Global Note
or an Unlegended Regulation S Global Note, as appropriate.

        "Restricted Definitive Note" means a Definitive Note bearing the
Private Placement Legend.

        "Restricted Global Note" means a Global Note bearing the Private
Placement Legend.

        "Restricted Period" means the 40-day distribution compliance period as
defined in Regulation S.

        "Rule 144" means Rule 144 promulgated under the Securities Act.

        "Rule 144A" means Rule 144A promulgated under the Securities Act.

        "Rule 903" means Rule 903 promulgated under the Securities Act.

        "Rule 904" means Rule 904 promulgated under the Securities Act.

        "Shelf Registration Statement" means the Shelf Registration Statement
as defined in the Registration Rights Agreement.

        "Unlegended Regulation S Global Note" means a permanent global Note in
the form of Exhibit A bearing the Global Note Legend, deposited with or
on behalf of and registered in the name of the Depository or its nominee and
issued upon expiration of the Restricted Period.

        "Unrestricted Definitive Note" means one or more Definitive Notes that
do not bear and are not required to bear the Private Placement Legend.

-4-

        "Unrestricted Global Note" means a permanent Global Note substantially
in the form of Exhibit A that bears the Global Note Legend, that is
deposited with or on behalf of and registered in the name of the Depository,
representing a series of Notes, and that does not bear the Private Placement
Legend.

        "U.S. Person" means a U.S. person as defined in Rule 902(o) under the
Securities Act.

        (b) Amendments to Article Two

            (i) The following paragraphs will be added to Section 2.01:

        "(c) Regulation S Global Notes. Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of the Legended Regulation S
Global Note, which shall be deposited on behalf of the purchasers of the Notes
represented thereby with the Trustee, as custodian for The Depository Trust
Company ("DTC"), and registered in the name of the Depository or the
nominee of the Depository for the accounts of designated agents holding on
behalf of Euroclear or Clearstream, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. Following the termination
of the Restricted Period, beneficial interests in the Legended Regulation S
Global Note may be exchanged for beneficial interests in Unlegended Regulation S
Global Notes pursuant to Section 2.07 and the Applicable Procedures.
Simultaneously with the authentication of Unlegended Regulation S Global Notes,
the Trustee shall cancel the Legended Regulation S Global Note. The aggregate
principal amount of the Regulation S Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee and the
Depository or its nominee, as the case may be, in connection with transfers of
interest as hereinafter provided.

        (d) Euroclear and Clearstream Procedures Applicable. The provisions of the
"Operating Procedures of the Euroclear System" and "Terms and Conditions
Governing Use of Euroclear" and the "General Terms and Conditions of Clearstream
Banking" and "Customer Handbook" of Clearstream shall be applicable to transfers
of beneficial interests in the Regulation S Global Notes that are held by
Participants through Euroclear or Clearstream."

            (ii) The fifth paragraph of Section 2.02 shall be deleted and replaced
with the following:

        "The Company may, subject to Article Four of this Indenture and applicable
law, issue Additional Notes under this Indenture, including Exchange Notes. The
Notes issued on the Issue Date and any Additional Notes subsequently issued
shall be treated as a single class for all purposes under this Indenture."

            (iii) Section 2.03 shall be deleted and replaced with the following:

        "If a Holder has given wire transfer instructions to the Company, the Paying
Agent, on behalf of the Company, shall pay all principal, interest and premium
and Additional Interest, if any, on that Holder's Notes in accordance with those
instructions. All other payments on Notes shall be made at the office or agency
of the Paying Agent and Registrar within the City 

-5-

and State of New York unless
the Company elects to make interest payments by check mailed to the Holders at
their addresses set forth in the register of Holders."

            (iv) Section 2.05 shall be deleted and replaced with the following:

        "The Company shall require each Paying Agent other than the Trustee to agree
in writing that the Paying Agent shall hold in trust for the benefit of Holders
or the Trustee all money held by the Paying Agent for the payment of principal,
premium or Additional Interest, if any, or interest on the Notes, and shall
promptly notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent (if other than the Company or one of its
Subsidiaries) shall have no further liability for the money. If the Company or
one of its Subsidiaries acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as
Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the
Company, the Trustee may serve as Paying Agent for the Notes."

            (v) Section 2.07 shall be deleted in its entirety and replaced with the
following:

        "(a) Transfer and Exchange of Global Notes. A Global Note may not be
transferred as a whole except by the Depository to a nominee of the Depository,
by a nominee of the Depository to the Depository or to another nominee of the
Depository, or by the Depository or any such nominee to a successor Depository
or a nominee of such successor Depository. All Global Notes shall be exchanged
by the Company for Definitive Notes if (i) DTC (A) notifies the Company that it
is unwilling or unable to continue as Depository for the Global Notes and the
Company fails to appoint a successor Depository within 90 days after receiving
such notice or (B) has ceased to be a clearing agency registered under the
Exchange Act, and in each case the Company fails to appoint a successor
Depository within 90 days after becoming aware of such condition; (ii) the
Company, at its option, notifies the Trustee in writing that it elects to cause
the issuance of Definitive Notes in exchange for Global Notes (in whole but not
in part); provided that in no event shall the Legended Regulation S Global Note
be exchanged by the Company for Definitive Notes other than in accordance with
Section 2.07(c)(ii); or (iii) there shall have occurred and be continuing a
Default or Event of Default with respect to the Notes. Upon the occurrence of
any of the preceding events in (i), (ii) or (iii) above, Definitive Notes shall
be issued in such names as the Depository shall instruct the Trustee. Global
Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.08 and 2.11 hereof. Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to
this Section 2.07 or Section 2.08 or 2.11 hereof, shall be authenticated and
delivered in the form of, and shall be, a Global Note. A Global Note may not be
exchanged for another Note other than as provided in this Section 2.07(a);
however, beneficial interests in a Global Note may be transferred and exchanged
as provided in Section 2.07(b), (c) or (f) hereof.

        (b) Transfer and Exchange of Beneficial Interests in the Global Notes.
The transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depository, in accordance with the provisions of this
Indenture and the Applicable Procedures. 

-6-

Beneficial interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes also shall require compliance with
either subparagraph (i) or (ii) below, as applicable, as well as one or more of
the other following subparagraphs, as applicable:

            (i) Transfer of Beneficial Interests in the Same Global Note.
Beneficial interests in any Restricted Global Note may be transferred to Persons
who take delivery thereof in the form of a beneficial interest in the same
Restricted Global Note in accordance with the transfer restrictions set forth in
the Private Placement Legend; provided, however, that prior to the
expiration of the Restricted Period, transfers of beneficial interests in the
Legended Regulation S Global Note may not be made to a U.S. Person or for the
account or benefit of a U.S. Person (other than the Initial Purchaser).
Beneficial interests in any Unrestricted Global Note may be transferred to
Persons who take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note. No written orders or instructions shall be required to
be delivered to the Registrar to effect the transfers described in this Section
2.07(b)(i).

            (ii) All Other Transfers and Exchanges of Beneficial Interests in Global
Notes. In connection with all transfers and exchanges of beneficial
interests that are not subject to Section 2.07(b)(i) above, the transferor of
such beneficial interest must deliver to the Registrar either (A) (1) a written
order from a Participant or an Indirect Participant given to the Depository in
accordance with the Applicable Procedures directing the Depository to credit or
cause to be credited a beneficial interest in another Global Note in an amount
equal to the beneficial interest to be transferred or exchanged and (2)
instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase
or (B) (1) a written order from a Participant or an Indirect Participant given
to the Depository in accordance with the Applicable Procedures directing the
Depository to cause to be issued a Definitive Note in an amount equal to the
beneficial interest to be transferred or exchanged and (2) instructions given by
the Depository to the Registrar containing information regarding the Person in
whose name such Definitive Note shall be registered to effect the transfer or
exchange referred to in (1) above; provided that in no event shall
Definitive Notes be issued upon the transfer or exchange of beneficial interests
in the Legended Regulation S Global Note other than in accordance with Section
2.07(c)(ii). Upon consummation of an Exchange Offer by the Company in accordance
with Section 2.07(f), the requirements of this Section 2.07(b)(ii) shall be
deemed to have been satisfied upon receipt by the Registrar of the instructions
contained in the Letter of Transmittal delivered by the holder of such
beneficial interests in the Restricted Global Notes. Upon satisfaction of all of
the requirements for transfer or exchange of beneficial interests in Global
Notes contained in this Indenture and the Notes or otherwise applicable under
the Securities Act, the Trustee shall adjust the principal amount at maturity of
the relevant Global Notes pursuant to Section 2.07(i).

            (iii) Transfer of Beneficial Interests to Another Restricted Global Note.
A beneficial interest in any Restricted Global Note may be transferred to a
Person who takes delivery thereof in the form of a beneficial interest in
another Restricted Global Note if the transfer complies with the requirements of
Section 2.07(b)(ii) above and the Registrar receives the following:

-7-

	
		        (A) if the transferee shall take delivery in the form
						of a beneficial interest in the 144A Global Note, then
						the transferor must deliver a certificate in the form of
						Exhibit B, including the certifications in item
						(1) thereof; and

		        (B) if the transferee shall take delivery in the form
						of a beneficial interest in a Legended Regulation S
						Global Note, then the transferor must deliver a
						certificate in the form of Exhibit B, including
						the certifications in item (2) thereof.

	

            (iv) Transfer and Exchange of Beneficial Interests in a Restricted Global
Note for Beneficial Interests in an Unrestricted Global Note. A beneficial
interest in any Restricted Global Note may be exchanged by any Holder thereof
for a beneficial interest in an Unrestricted Global Note or transferred to a
Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note if the exchange or transfer complies with the
requirements of Section 2.07(b)(ii) above and:

	
		        (A) such exchange or transfer is effected pursuant to
						the Exchange Offer in accordance with the Registration
						Rights Agreement and the Holder of the beneficial
						interest to be transferred, in the case of an exchange,
						or the transferee, in the case of a transfer, certifies
						in the applicable Letter of Transmittal (1) it is not an
						affiliate (as defined in Rule 144) of the Company, (2)
						it is not engaged in, and does not intend to engage in,
						and has no arrangement or understanding with any Person
						to participate in, a distribution of the Exchange Notes
						to be issued in the Exchange Offer and (3) it is
						acquiring the Exchange Notes in its ordinary course of
						business;

		        (B) such transfer is effected pursuant to the Shelf
						Registration Statement in accordance with the
						Registration Rights Agreement;

		        (C) such transfer is effected by a Broker-Dealer
						pursuant to the Exchange Offer Registration Statement in
						accordance with the Registration Rights Agreement; or

		        (D) the Registrar receives
		the following:

		
			        (1) if the holder of
			such beneficial interest in a Restricted Global Note proposes to
			exchange such beneficial interest for a beneficial interest in an
			Unrestricted Global Note, a certificate from such holder in the form
			of Exhibit C, including the certifications in item (1)(a)
			thereof; or

			        (2) if the holder of
			such beneficial interest in a Restricted Global Note proposes to
			transfer such beneficial interest to a Person who shall take
			delivery thereof in the 

		

	

-8-

	
		
			form of a beneficial interest in an Unrestricted Global Note, a
			certificate from such holder in the form of Exhibit B,
			including the certifications in item (4) thereof;

		

		and, in each such case set forth in this subparagraph
						(D), if the Registrar or the Company so requests or if
						the Applicable Procedures so require, an opinion of
						counsel in form reasonably acceptable to the Registrar
						and the Company to the effect that such exchange or
						transfer is in compliance with the Securities Act and
						that the restrictions on transfer contained herein and
						in the Private Placement Legend are no longer required
						in order to maintain compliance with the Securities Act.

	

        If any such transfer pursuant to this Section 2.07(b) is effected at a time
when a Global Note has not yet been issued, the Company shall issue and, upon
receipt of an Authentication Order in accordance with Section 2.02 hereof, the
Trustee shall authenticate one or more Global Notes in an aggregate principal
amount equal to the aggregate principal amount of beneficial interests
transferred.

        Beneficial interests in an Unrestricted Global Note cannot be exchanged for,
or transferred to Persons who take delivery thereof in the form of, a beneficial
interest in a Restricted Global Note.

        (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

            (i) Beneficial Interests in Restricted Global Notes to Restricted
Definitive Notes. If any holder of a beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a Restricted
Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Restricted Definitive Note, then, upon receipt
by the Registrar of the following documentation:

	
		        (A) if the holder of such beneficial interest in a
						Restricted Global Note proposes to exchange such
						beneficial interest for a Restricted Definitive Note, a
						certificate from such holder in the form of Exhibit C,
						including the certifications in item (2)(a) thereof;

		        (B) if such beneficial interest is being transferred
						to a QIB in accordance with Rule 144A under the
						Securities Act, a certificate to the effect set forth in
		Exhibit B, including the certifications in item
						(1) thereof;

		        (C) [INTENTIONALLY OMITTED];

		        (D) [INTENTIONALLY OMITTED];

		        (E) if such beneficial interest is being transferred
						to an Institutional Accredited Investor in reliance on
						an exemption from the registration requirements of the
						Securities Act other than that listed in subparagraph
						(B) above, a certificate to the effect set forth in Exhibit B
		

	

-9-

	
		hereto, including the certifications,
						certificates and Opinion of Counsel required by item (3)
						thereof, if applicable; or

		        (F) if such beneficial interest is being transferred
						to the Company or any of its Subsidiaries, a certificate
						to the effect set forth in Exhibit B, including
						the certifications in item (3)(a) thereof,

	

the Trustee shall cause the aggregate principal amount of the applicable
Global Note to be reduced accordingly pursuant to Section 2.07(i) hereof, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Person designated in the instructions a Definitive Note in the appropriate
principal amount. Any Definitive Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.07(c) shall be
registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depository and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Notes to the
Persons in whose names such Notes are so registered. Any Definitive Note issued
in exchange for a beneficial interest in a Restricted Global Note pursuant to
this Section 2.07(c)(i) shall bear the Private Placement Legend and shall be
subject to all restrictions on transfer contained therein.

            (ii) Beneficial Interests in Legended Regulation S Global Note to
Definitive Notes. A beneficial interest in the Legended Regulation S Global
Note may not be exchanged for a Definitive Note or transferred to a Person who
takes delivery thereof in the form of a Definitive Note prior to the expiration
of the Restricted Period, except in the case of a transfer pursuant to an
exemption from the registration requirements of the Securities Act other than
Rule 903 or Rule 904.

            (iii) Beneficial Interests in Restricted Global Notes to Unrestricted
Definitive Notes. A holder of a beneficial interest in a Restricted Global
Note may exchange such beneficial interest for an Unrestricted Definitive Note
or may transfer such beneficial interest to a Person who takes delivery thereof
in the form of an Unrestricted Definitive Note only if:

	
		        (A) such exchange or transfer is effected pursuant to
						the Exchange Offer in accordance with the Registration
						Rights Agreement and the holder of such beneficial
						interest, in the case of an exchange, or the transferee,
						in the case of a transfer, certifies in the applicable
						Letter of Transmittal that (1) it is not an affiliate
						(as defined in Rule 144) of the Company, (2) it is not
						engaged in, and does not intend to engage in, and has no
						arrangement or understanding with any Person to
						participate in, a distribution of the Exchange Notes to
						be issued in the Exchange Offer and (3) it is acquiring
						the Exchange Notes in its ordinary course of business;

		        (B) such transfer is effected pursuant to the Shelf
						Registration Statement in accordance with the
						Registration Rights Agreement;

	

-10-

	
		        (C) such transfer is effected by a Broker-Dealer
						pursuant to the Exchange Offer Registration Statement in
						accordance with the Registration Rights Agreement; or

		        (D) the Registrar receives the following:

		
			        (1) if the Holder of such beneficial
										interest in a Restricted Global Note
										proposes to exchange such beneficial
										interest for a Definitive Note that does
										not bear the Private Placement Legend, a
										certificate from such Holder in the form
										of Exhibit C, including the
										certifications in item (1)(b) thereof;
										or

			        (2) if the Holder of such beneficial
										interest in a Restricted Global Note
										proposes to transfer such beneficial
										interest to a Person who shall take
										delivery thereof in the form of a
										Definitive Note that does not bear the
										Private Placement Legend, a certificate
										from such Holder in the form of Exhibit B, including the
										certifications in item (4) thereof;

		

		and, in each such case set forth in this subparagraph
						(D), if the Registrar or the Company so requests or if
						the Applicable Procedures so require, an opinion of
						counsel in form reasonably acceptable to the Registrar
						and the Company to the effect that such exchange or
						transfer is in compliance with the Securities Act and
						that the restrictions on transfer contained herein and
						in the Private Placement Legend are no longer required
						in order to maintain compliance with the Securities Act.

	

            (iv) Beneficial Interests in Unrestricted Global Notes to Unrestricted
Definitive Notes. If any holder of a beneficial interest in an Unrestricted
Global Note proposes to exchange such beneficial interest for a Definitive Note
or to transfer such beneficial interest to a Person who takes delivery thereof
in the form of a Definitive Note, then, upon satisfaction of the conditions set
forth in Section 2.07(b)(ii), the Trustee shall cause the aggregate principal
amount of the applicable Global Note to be reduced accordingly pursuant to
Section 2.07(i), and the Company shall execute and the Trustee shall
authenticate and deliver to the Person designated in the instructions a
Definitive Note in the appropriate principal amount. Any Definitive Note issued
in exchange for a beneficial interest pursuant to this Section 2.07(c)(iv) shall
be registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depository and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Notes to the
Persons in whose names such Notes are so registered. Any Definitive Note issued
in exchange for a beneficial interest pursuant to this Section 2.07(c)(iv) shall
not bear the Private Placement Legend.

        (d) Transfer and Exchange of Definitive Notes for
				Beneficial Interests.

-11-

            (i) Restricted Definitive Notes to Beneficial Interests in Restricted
Global Notes. If any Holder of a Restricted Definitive Note proposes to
exchange such Note for a beneficial interest in a Restricted Global Note or to
transfer such Restricted Definitive Notes to a Person who takes delivery thereof
in the form of a beneficial interest in a Restricted Global Note, then, upon
receipt by the Registrar of the following documentation:

	
		        (A) if the Holder of such Restricted Definitive Note
						proposes to exchange such Note for a beneficial interest
						in a Restricted Global Note, a certificate from such
						Holder in the form of Exhibit C, including the
						certifications in item (2)(b) thereof;

		        (B) if such Restricted Definitive Note is being
						transferred to a QIB in accordance with Rule 144A, a
						certificate to the effect set forth in Exhibit B,
						including the certifications in item (1) thereof;

		        (C) if such Restricted Definitive Note is being
						transferred to a Non-U.S. Person in an "offshore
						transaction" in accordance with Rule 903 or Rule
						904, a certificate to the effect set forth in Exhibit
						B, including the certifications in item (2) thereof;
						or

		        (D) if such Restricted Definitive Note is being
						transferred to the Company or any of its Subsidiaries, a
						certificate to the effect set forth in Exhibit B,
						including the certifications in item (3)(a) thereof,

	

the Trustee shall cancel the Restricted Definitive Note, and increase or
cause to be increased the aggregate principal amount of, in the case of clause
(A) above, the appropriate Restricted Global Note, in the case of clause (B)
above, the 144A Global Note, and in the case of clause (C) above, the Regulation
S Global Note.

        (ii) Restricted Definitive Notes to Beneficial Interests in Unrestricted
Global Notes. A Holder of a Restricted Definitive Note may exchange such
Note for a beneficial interest in an Unrestricted Global Note or transfer such
Restricted Definitive Note to a Person who takes delivery thereof in the form of
a beneficial interest in an Unrestricted Global Note only if:

	
		        (A) such exchange or transfer is effected pursuant to
						the Exchange Offer in accordance with the Registration
						Rights Agreement and the Holder, in the case of an
						exchange, or the transferee, in the case of a transfer,
						certifies in the applicable Letter of Transmittal (1) it
						is not an affiliate (as defined in Rule 144) of the
						Company, (2) it is not engaged in, and does not intend
						to engage in, and has no arrangement or understanding
						with any Person to participate in, a distribution of the
						Exchange Notes to be issued in the Exchange Offer and
						(3) it is acquiring the Exchange Notes in its ordinary
						course of business;

	

-12-

	
		        (B) such transfer is effected pursuant to the Shelf
						Registration Statement in accordance with the
						Registration Rights Agreement;

		        (C) such transfer is effected by a Broker-Dealer
						pursuant to the Exchange Offer Registration Statement in
						accordance with the Registration Rights Agreement; or

		        (D) the Registrar receives the following:

		
			        (1) if the Holder of such Restricted
										Definitive Note proposes to exchange
										such Note for a beneficial interest in
										the Unrestricted Global Note, a
										certificate from such Holder in the form
										of Exhibit C, including the
										certifications in item (1)(c) thereof;
										or

			        (2) if the Holder of such Restricted
										Definitive Note proposes to transfer
										such Note to a Person who shall take
										delivery thereof in the form of a
										beneficial interest in the Unrestricted
										Global Note, a certificate from such
										Holder in the form of Exhibit B,
										including the certifications in item (4)
										thereof;

		

		and, in each such case set forth in this subparagraph
						(D), if the Registrar or the Company so request or if
						the Applicable Procedures so require, an opinion of
						counsel in form reasonably acceptable to the Registrar
						and the Company to the effect that such exchange or
						transfer is in compliance with the Securities Act and
						that the restrictions on transfer contained herein and
						in the Private Placement Legend are no longer required
						in order to maintain compliance with the Securities Act.

	

        Upon satisfaction of the conditions of any of the subparagraphs in this
Section 2.07(d)(ii), the Trustee shall cancel the Definitive Notes and increase
or cause to be increased the aggregate principal amount of the Unrestricted
Global Note.

            (iii) Unrestricted Definitive Notes to Beneficial Interests in
Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted Global Note or
transfer such Unrestricted Definitive Note to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global Note at
any time. Upon receipt of a request for such an exchange or transfer, the
Trustee shall cancel the applicable Unrestricted Definitive Note and increase or
cause to be increased the aggregate principal amount of one of the Unrestricted
Global Notes.

        If any such exchange or transfer from a Definitive Note to a beneficial
interest is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an Authentication Order in accordance with
Section 2.02 hereof, the Trustee shall authenticate one 

-13-

or more Unrestricted
Global Notes in an aggregate principal amount equal to the principal amount of
Definitive Notes so transferred.

        (e) Transfer and Exchange of Definitive Notes for Definitive Notes.
Upon request by a Holder of Definitive Notes and such Holder's compliance with
the provisions of this Section 2.07(e), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar
the Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.07(e).

            (i) Restricted Definitive Notes to Restricted Definitive Notes. Any
Restricted Definitive Note may be transferred to and registered in the name of
Persons who take delivery thereof in the form of a Restricted Definitive Note if
the Registrar receives the following:

	
		        (A) if the transfer shall be made pursuant to Rule
						144A under the Securities Act, then the transferor must
						deliver a certificate in the form of Exhibit B,
						including the certifications in item (1) thereof;

		        (B) [INTENTIONALLY OMITTED]; and

		        (C) if the transfer shall be made pursuant to any
						other exemption from the registration requirements of
						the Securities Act, then the transferor must deliver a
						certificate in the form of Exhibit B, including
						the certifications, certificates and Opinion of Counsel
						required by item (3) thereof, if applicable.

	

            (ii) Restricted Definitive Notes to Unrestricted Definitive Notes. Any
Restricted Definitive Note may be exchanged by the Holder thereof for an
Unrestricted Definitive Note or transferred to a Person or Persons who take
delivery thereof in the form of an Unrestricted Definitive Note if:

	
		        (A) such exchange or transfer is effected pursuant to
						the Exchange Offer in accordance with the Registration
						Rights Agreement and the Holder, in the case of an
						exchange, or the transferee, in the case of a transfer,
						certifies in the applicable Letter of Transmittal that
						(1) it is not an affiliate (as defined in Rule 144) of
						the Company, (2) it is not engaged in, and does not
						intend to engage in, and has no arrangement or
						understanding with any Person to participate in, a
						distribution of the Exchange Notes to be issued in the
						Exchange Offer and (3) it is acquiring the Exchange
						Notes in its ordinary course of business;

		        (B) any such transfer is effected pursuant to the
						Shelf Registration Statement in accordance with the
						Registration Rights Agreement;

	

-14-

	
		        (C) any such transfer is effected by a Broker-Dealer
						pursuant to the Exchange Offer Registration Statement in
						accordance with the Registration Rights Agreement; or

		        (D) the Registrar receives the following:

		
			        (1) if the Holder of such Restricted
										Definitive Note proposes to exchange
										such Note for an Unrestricted Definitive
										Note, a certificate from such Holder in
										the form of Exhibit C, including
										the certifications in item (1)(d)
										thereof; or

			        (2) if the Holder of such Restricted
										Definitive Note proposes to transfer
										such Note to a Person who shall take
										delivery thereof in the form of an
										Unrestricted Definitive Note, a
										certificate from such Holder in the form
										of Exhibit B, including the
										certifications in item (4) thereof;

		

		and, in each such case set forth in this subparagraph
						(D), if the Registrar so requests, an opinion of counsel
						in form reasonably acceptable to the Company to the
						effect that such exchange or transfer is in compliance
						with the Securities Act and that the restrictions on
						transfer contained herein and in the Private Placement
						Legend are no longer required in order to maintain
						compliance with the Securities Act.

	

            (iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes.
A Holder of Unrestricted Definitive Notes may transfer such Notes to a Person
who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon
receipt of a request to register such a transfer, the Registrar shall register
the Unrestricted Definitive Notes pursuant to the instructions from the Holder
thereof.

        (f) Exchange Offer. Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.02, the
Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not
affiliates (as defined in Rule 144) of the Company, (y) they are not engaged in,
and do not intend to engage in, and have no arrangement or understanding with
any Person to participate in, a distribution of the Exchange Notes to be issued
in the Exchange Offer and (z) they are acquiring the Exchange Notes in their
ordinary course of business and (ii) Unrestricted Definitive Notes in an
aggregate principal amount equal to the principal amount of the Restricted
Definitive Notes accepted for exchange in the Exchange Offer. Concurrently with
the issuance of such Notes, the Trustee shall cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Persons designated by the Holders of Restricted Global Notes so accepted
Unrestricted Global Notes in the appropriate principal amount. 

-15-

        (g) Legends. The following legends shall appear on the face of all
Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

            (i) Private Placement Legend. Except as permitted below, each Global
Note and each Definitive Note (and all Notes issued in exchange therefor or
substitution thereof) shall bear the legend in substantially the following form:

	
		THIS NOTE HAS NOT BEEN REGISTERED UNDER THE
				SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
				ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR
				PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED,
				TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
				ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
				EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
				THE SECURITIES ACT. THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE
				HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
				SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER
				OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
				COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
				NOTE (OR ANY PREDECESSOR OF THIS NOTE) (THE "RESALE RESTRICTION
				TERMINATION DATE") ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY
				THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
				UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE
				ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
				ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A
				"QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT
				PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
				INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
				BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND
				SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES
				WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR
				(E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
				REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE
				COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE
				OR TRANSFER (i) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE
				40 DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
				REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E)
				PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE
				DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
				INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii) IN EACH OF
				THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER
				IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY
				THE 

	

-16-

	
		TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON
				THE REQUEST OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION
				DATE.

	

Notwithstanding the foregoing, any Global Note or Definitive Note issued
pursuant to subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii),
(e)(iii) or (f) to this Section 2.07 (and all Notes issued in exchange therefor
or substitution thereof) shall not bear the Private Placement Legend.

            (ii) Global Note Legend. Each Global Note shall bear a legend in
substantially the following form:

	
		THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY
				(AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE
				IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND
				IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
				THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE
				REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS
				GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT
				TO SECTION 2.07(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY
				BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
				2.12 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
				TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN
				CONSENT OF THE COMPANY.

	

        (h) Regulation S Global Note Legend. The Regulation S Global Note
shall bear a legend in substantially the following form:

	
		THE RIGHTS ATTACHING TO THIS REGULATION S
				GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS
				EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE
				INDENTURE (AS DEFINED HEREIN). 

	

        (i) Cancellation and/or Adjustment of Global Notes. At such time as
all beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to or
retained and canceled by the Trustee in accordance with Section 2.12 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global Note
is exchanged for or transferred to a Person who shall take delivery thereof in
the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depository at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who shall take delivery thereof in the form of a beneficial interest
in another Global Note, such other Global Note shall be increased 

-17-

accordingly
and an endorsement shall be made on such Global Note by the Trustee or by the
Depository at the direction of the Trustee to reflect such increase.

        (j) General Provisions Relating to Transfers and Exchanges.

            (i) To permit registrations of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Global Notes and Definitive Notes
upon the Company's order or at the Registrar's request.

            (ii) No service charge shall be made to a Holder of a beneficial interest in
a Global Note or to a Holder of a Definitive Note for any registration of
transfer or exchange, but the Company or the Trustee may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than any such transfer taxes or similar
governmental charges payable upon exchange or transfer pursuant to Sections
2.11, 3.06, 3.08, 4.10, 4.14 and 9.05).

            (iii) The Registrar shall not be required to register the transfer of or
exchange any Note selected for redemption in whole or in part, except the
unredeemed portion of any Note being redeemed in part.

            (iv) All Global Notes and Definitive Notes issued upon any registration of
transfer or exchange of Global Notes or Definitive Notes shall be the valid and
legally binding obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Global Notes or
Definitive Notes surrendered upon such registration of transfer or exchange.

            (v) The Company shall not be required (A) to issue, to register the transfer
of or to exchange any Notes during a period beginning at the opening of business
15 days before the day of any selection of Notes for redemption under Section
3.02 and ending at the close of business on the day of selection, (B) to
register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part, (C) to register the transfer of or to exchange a Note between a record
date and the next succeeding interest payment date or (D) to register the
transfer of or to exchange a Note tendered and not withdrawn in connection with
a Change of Control Offer or an Asset Sale Offer.

            (vi) Prior to due presentment for the registration of a transfer of any Note,
the Trustee, any Agent and the Company may deem and treat the Person in whose
name any Note is registered as the absolute owner of such Note for the purpose
of receiving payment of principal of and interest on such Notes and for all
other purposes, and none of the Trustee, any Agent or the Company shall be
affected by notice to the contrary.

            (vii) The Trustee shall authenticate Global Notes and Definitive Notes in
accordance with the provisions of Section 2.02.

            (viii) All certifications, certificates and Opinions of Counsel required to
be submitted to the Registrar pursuant to this Section 2.07 to effect a
registration of transfer or exchange may be submitted by facsimile followed by
delivery of the original."

-18-

        (c) Amendments to Article Three

            (i) Section 3.05(a) shall be deleted and replaced with the following:

        "Not later than 12:00 p.m. (noon) New York City Time on the redemption date,
the Company shall deposit with the Trustee or with the Paying Agent money
sufficient to pay the redemption price of and accrued and unpaid interest and
Additional Interest, if any, on all Notes to be redeemed on that date. The
Trustee or the Paying Agent shall promptly return to the Company any money
deposited with the Trustee or the Paying Agent by the Company in excess of the
amounts necessary to pay the redemption price of, and accrued and unpaid
interest on, all Notes to be redeemed."

            (ii) The first paragraph of Section 3.07(a) shall be deleted and replaced
with the following:

        "(a) Except as set forth in clauses (b) and (c) of this Section 3.07, the
Company shall not have the option to redeem the Notes pursuant to this Section
3.07 prior to January 15, 2010. On or after January 15, 2010, the Company may
redeem all or a part of the Notes at the redemption prices (expressed as
percentages of principal amount) set forth below plus accrued and unpaid
interest and Additional Interest, if any, thereon, to the applicable redemption
date, if redeemed during the twelve-month period beginning on January 15 of the
years indicated below:"

            (iii) Section 3.07(b) shall be deleted and replaced with the following:

        "(b) At any time prior to January 15, 2008, the Company may redeem up to 35%
of the aggregate principal amount of the Notes issued hereunder (including any
Additional Notes) at a redemption price of 106.250% of the principal amount
thereof, plus accrued and unpaid interest and Additional Interest, if any,
thereon to the redemption date, with the net cash proceeds of one or more Equity
Offerings; provided that:"

            (iv) Section 3.07(c) shall be deleted and replaced with the following:

        "(c) At any time prior to January 15, 2010, the Company may redeem all or
part of the Notes at a redemption price equal to the sum of (A) 100% of the
principal amount thereof, plus (B) the Applicable Premium as of the date
of redemption, plus (C) accrued and unpaid interest and Additional
Interest, if any, to the date of redemption."

            (v) Paragraphs (iii) and (iv) of Section 3.08 shall be deleted and
replaced with the following:

        "(iii) that any Note not tendered or accepted for payment shall continue to
accrue interest and Additional Interest, if any;

        (iv) that, unless the Company defaults in making such payment, any Note (or
portion thereof) accepted for payment pursuant to the Repurchase Offer shall
cease to accrue interest and Additional Interest, if any, after the Purchase
Date;"

-19-

        (d) Amendments to Article Four

            (i) Section 4.01 shall be deleted and replaced with the following:

        "(a) The Company shall pay or cause to be paid the principal of, and premium,
if any, and interest on, the Notes on the dates and in the manner provided in
the Notes. Principal and premium, if any, shall be considered paid on the date
due if the Paying Agent, if other than the Company or one of its Subsidiaries,
holds as of 12:00 p.m. (noon) New York City Time on the due date money deposited
by the Company in immediately available funds and designated for and sufficient
to pay all principal and premium, if any, then due. Interest shall be considered
paid on the date due if the Paying Agent, if other than the Company or one of
its Subsidiaries, holds as of 12:00 p.m. (noon) New York City Time on the
Business Day prior to the due date money deposited by the Company in immediately
available funds and designated for and sufficient to pay all interest then due.
The Company shall pay all Additional Interest, if any, in the same manner on the
dates and in the amounts set forth in the Registration Rights Agreement. 

        (b) The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate equal to
1% per annum in excess of the then applicable interest rate on the Notes to the
extent lawful. The Company shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue installments of interest,
and Additional Interest (without regard to any applicable grace period) at the
same rate to the extent lawful."

            (ii) The following paragraph shall be added to Section 4.03:

        "(c) The Company, for so long as any Notes remain outstanding, shall furnish
to the Holders and to prospective investors, upon their request, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act."

            (iii) Section 4.04(a) shall be deleted and replaced with the following:

        "(a) The Company shall deliver to the Trustee, within 90 days after the end
of each fiscal year, an Officers' Certificate stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to his or her knowledge, the Company has kept,
observed, performed and fulfilled its obligations under this Indenture and is
not in default in the performance or observance of any of the terms, provisions
and conditions of this Indenture (or, if a Default or Event of Default shall
have occurred, describing all such Defaults or Events of Default of which he or
she may have knowledge and what action the Company are taking or propose to take
with respect thereto) and that to his or her knowledge no event has occurred and
remains in existence by reason of which payments on account of the principal of
or interest or Additional Interest, if any, on the Notes is prohibited or if
such event has occurred, a description of the event and what action the Company
is taking or proposes to take with respect thereto."

            (iv) Section 4.07(b)(v) shall be deleted and replaced with the following:

-20-

        "(v) the redemption, repurchase or other acquisition or retirement for value
of any Equity Interests of the Company or any Restricted Subsidiary of the
Company held by any member of the Company's or any Restricted Subsidiary's
management or by employees, former employees, directors or former directors of
the Company or any of its Restricted Subsidiaries pursuant to any equity
subscription agreement, stock option agreement, shareholders' agreement or
similar agreement; provided that the aggregate price paid for such
redeemed, repurchased, acquired or retired Equity Interests shall not exceed
$750,000 in any twelve-month period or $5 million in the aggregate;"

            (v) Section 4.09(b)(i) shall be deleted and replaced with the following:

        "(i) the incurrence of Indebtedness under Credit Facilities in an aggregate
principal amount at any one time outstanding (with letters of credit being
deemed to have a principal amount equal to the maximum potential liability of
the Company and its Restricted Subsidiaries thereunder) not to exceed $390.0
million, less the aggregate amount of all Net Proceeds of Asset Sales
applied by the Company or any Restricted Subsidiary of the Company to
permanently repay any such Indebtedness (and, in the case of any revolving
credit Indebtedness, to effect a corresponding commitment reduction thereunder)
pursuant to Section 4.10;"

            (vi) Section 4.10(c) shall be deleted and replaced with the following:

        "(c) Any Net Proceeds from Asset Sales that are not applied or invested as
provided in Section 4.10(b) above shall constitute "Excess Proceeds."
Within 10 days after the aggregate amount of Excess Proceeds exceeds $25.0
million, the Company shall make an Asset Sale offer (an "Asset Sale Offer")
to all Holders of Notes and all holders of other Indebtedness that is pari
passu with the Notes or any Note Guarantee containing provisions similar to
those set forth by this Indenture with respect to offers to purchase with the
proceeds of sales of assets, to purchase the maximum principal amount of Notes
and such other pari passu Indebtedness that may be purchased out of the
Excess Proceeds. The offer price in any Asset Sale Offer shall be equal to 100%
of the principal amount of the Notes and such other pari passu
Indebtedness plus accrued and unpaid interest and Additional Interest, if any,
to the date of purchase, and shall be payable in cash. If any Excess Proceeds
remain after consummation of an Asset Sale Offer, the Company may use such
Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If
the aggregate principal amount of Notes and such other pari passu
Indebtedness tendered in such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Notes and such other pari passu Indebtedness shall be
purchased on a pro rata basis based on the principal amount of Notes and such
other pari passu Indebtedness tendered. Upon completion of each Asset
Sale Offer, the amount of Excess Proceeds shall be reset at zero."

            (vii) Section 4.14(a) shall be deleted and replaced with the following:

        "(a) If a Change of Control occurs, each Holder of Notes shall have the right
to require the Company to repurchase all or any part (equal to $1,000 or an
integral multiple thereof) of that Holder's Notes pursuant to an offer by the
Company (a "Change of Control Offer") at an offer price (a "Change of
Control Payment") in cash equal to 101% of the aggregate principal amount
thereof plus accrued and unpaid interest and Additional Interest, if any,
thereon, to the date of the Change of Control Payment Date. Within 30 days
following any 

-21-

Change of Control, the Company shall mail a notice to each Holder
describing the transaction or transactions that constitute the Change of Control
and offering to repurchase Notes on a date (the "Change of Control Payment
Date") specified in such notice, which date shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed, pursuant to the
procedures described in Section 3.08 (including the notice required thereby).
The Company shall comply with the requirements of Rule 14e-1 under the Exchange
Act and any other securities laws and regulations thereunder to the extent such
laws and regulations are applicable in connection with the repurchase of the
Notes as a result of a Change of Control. To the extent that the provisions of
any securities laws or regulations conflict with the Change of Control
provisions of this Indenture, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under the Change of Control provisions of this Indenture by virtue
of such compliance."

            (viii) Section 4.14(c) shall be deleted and replaced with the following:

        "(c) The Paying Agent shall promptly mail or wire transfer to each Holder of
Notes so tendered the Change of Control Payment for such Notes, and the Trustee
shall promptly authenticate and mail (or cause to be transferred by book entry)
to each Holder a new Note equal in principal amount to any unpurchased portion
of the Notes surrendered, if any; provided that each such new Note shall
be in a principal amount of $1,000 or an integral multiple thereof. Any Note so
accepted for payment shall cease to accrue interest or Additional Interest, if
any, on and after the Change of Control Payment Date."

        (e) Amendments to Article Five

            (i) Section 5.01(a)(i) shall be deleted and replaced with the following:

        "(i) either: (a) the Company is the surviving corporation; or (b) the Person
formed by or surviving any such consolidation or merger (if other than the
Company) or to which such sale, assignment, transfer, conveyance or other
disposition shall have been made (1) is a corporation organized or existing
under the laws of the United States, any state thereof or the District of
Columbia and (2) assumes all the obligations of the Company under the Notes,
this Indenture and the Registration Rights Agreement pursuant to a supplemental
indenture reasonably satisfactory to the Trustee;"

            (ii) Section 5.02 shall be deleted and replaced with the following:

        "Upon any consolidation or merger, or any sale, assignment, transfer, lease,
conveyance or other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.01 hereof, the successor corporation formed
by such consolidation or into or with which the Company is merged or to which
such sale, assignment, transfer, conveyance or other disposition is made shall
succeed to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, conveyance or other disposition, the provisions of
this Indenture referring to the "Company" shall refer instead to the successor
corporation and not to the Company), and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein; provided, however,
that the predecessor Company shall not be relieved from the 

-22-

obligation to pay
the principal of and interest and Additional Interest, if any, on the Notes
except in the case of a sale, assignment, transfer, conveyance or other
disposition of all of the Company's assets that meets the requirements of
Section 5.01 hereof."

        (f) Amendments to Article Six

            (i) Section 6.01(a)(i) shall be deleted and replaced with the following:

        "(i) default for 30 days in the payment when due of interest on, or
Additional Interest with respect to, the Notes whether or not prohibited by the
subordination provisions of this Indenture;"

            (ii) Section 6.03(a) shall be deleted and replaced with the following:

        "(a) If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy to collect the payment of principal, premium, if any, and
interest on, and Additional Interest, if any, with respect to, the Notes or to
enforce the performance of any provision of the Notes or this Indenture."

            (iii) Section 6.04(a) shall be deleted and replaced with the following:

        "(a) Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the
Notes waive any existing Default or Event of Default and its consequences
hereunder except a continuing Default or Event of Default in the payment of
interest or Additional Interest on, or the principal of, or premium on, the
Notes; provided, however, that the Holders of a majority in
principal amount of the then outstanding Notes may rescind an acceleration and
its consequences, including any related payment default that resulted from such
acceleration."

            (iv) Section 6.04(c) shall be deleted and replaced with the following:

        "(c) In the event of a declaration of acceleration of the Notes because of an
Event of Default specified in Section 6.01(a)(v) has occurred and is continuing,
the declaration of acceleration of the Notes shall be automatically annulled if
the event of default or payment default triggering such Event of Default
pursuant to Section 6.01(a)(v) shall be remedied or cured by the Company or a
Restricted Subsidiary of the Company or waived by the holders of the relevant
Indebtedness within 20 days after the declaration of acceleration with respect
thereto and if (i) the annulment of the acceleration of such Notes would not
conflict with any judgment or decree of a court of competent jurisdiction, (ii)
all existing Events of Default, except non-payment of principal, premium or
Additional Interest, if any, or interest on the Notes that became due solely
because of the acceleration of the Notes, have been cured or waived, and (iii)
the Company has paid the Trustee its reasonable compensation and reimbursed the
Trustee for its reasonable expenses, disbursements and advancements."

            (v) Section 6.07 shall be deleted and replaced with the following:

        "Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of the principal of, premium or Additional
Interest, if any, or interest 

-23-

on such Note or to bring suit for the enforcement
of any such payment, on or after the due date expressed in the Notes, which
right shall not be impaired or affected without the consent of the Holder."

            (vi) Section 6.08 shall be deleted and replaced with the following:

        "If an Event of Default specified in Section 6.01(a)(i) or (a)(ii) occurs and
is continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Company for the whole amount of
principal of, premium, if any, interest and Additional Interest, if any,
remaining unpaid on the Notes and interest on overdue principal and premium, if
any, and interest and Additional Interest, if any, to the extent lawful, and
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel."

            (vii) Section 6.10(a) shall be deleted and replaced with the following:

        "(a) If the Trustee collects any money pursuant to this Article Six, it shall
pay out the money in the following order:

	
		        First: to the Trustee, its agents and attorneys for amounts due
		under Section 7.06, including payment of all reasonable compensation,
		expense and liabilities incurred, and all advances made, by the Trustee
		and the reasonable costs and expenses of collection;

		        Second: to Holders of Notes for amounts due and unpaid on the
		Notes for principal, premium, if any, interest and Additional Interest,
		ratably, without preference or priority of any kind, according to the
		amounts due and payable on the Notes for principal, premium, if any,
		interest and Additional Interest, if any, respectively; and

		        Third: to the Company or to such party as a court of competent
		jurisdiction shall direct in writing."

	

        (g) Amendments to Article Seven

                (i) Section 7.13 shall be deleted and replaced with the following:

        "Within 90 days after the occurrence of any Default, the Trustee shall
transmit by mail to all Holders, as their names and addresses appear in the
register of Notes, notice of such Default hereunder actually known to a
Responsible Officer of the Trustee, unless such default shall have been cured or
waived; provided, however, that, except in the case of a default in the
payment of the principal of or interest or Additional Interest on any Note, the
Trustee shall be protected in withholding such notice if and so long as a trust
committee of directors and/or Responsible Officers of the Trustee in good faith
determines that the withholding of such notice is in the interest of the
Holders."

        (h) Amendments to Article Eight

            (i) Section 8.02(a) shall be deleted and replaced with the following:

-24-

        "(a) the rights of Holders of outstanding Notes to receive solely from the
trust fund described in Section 8.04, and as more fully set forth in such
Section, payments in respect of the principal of, premium, if any, interest and
Additional Interest, if any, on such Notes when such payments are due;"

            (ii) Section 8.04(a)(i) shall be deleted and replaced with the following:

        "(i) the Company must irrevocably deposit with the Trustee, in trust, for the
benefit of the Holders of the Notes, cash in U.S. dollars, non-callable U.S.
Government Obligations, or a combination thereof, in such amounts as shall be
sufficient, in the opinion of a nationally recognized firm of independent public
accountants, to pay the principal of, or interest and premium and Additional
Interest, if any, on the outstanding Notes on the Stated Maturity or on the
applicable redemption date, as the case may be, and the Company must specify
whether the Notes are being defeased to maturity or to a particular redemption
date;"

            (iii) Section 8.05(a) shall be deleted and replaced with the following:

        "(a) Subject to Section 8.06, all money and non-callable U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee pursuant
to Section 8.04 in respect of the outstanding Notes shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Notes of all sums due and to become due thereon in respect
of principal, premium and Additional Interest, if any, and interest, but such
money need not be segregated from other funds except to the extent required by
law."

            (iv) Section 8.06 shall be deleted and replaced with the following:

        "If the Trustee or Paying Agent is unable to apply any U.S. dollars or
non-callable U.S. Government Obligations in accordance with Section 8.02 or
8.03, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.02 or 8.03 and, in the case of a Legal Defeasance, any Guarantors'
obligations under their respective Note Guarantees shall be revived and
reinstated as though no deposit had occurred pursuant to Section 8.02, in each
case until such time as the Trustee or Paying Agent is permitted to apply all
such money in accordance with Section 8.02 or 8.03, as the case may be; 
provided, however, that, if the Company makes any payment of
principal of, premium, if any, or interest on, or Additional Interest with
respect to, any Note following the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Notes to receive such
payment from the money held by the Trustee or Paying Agent."

            (i) Amendments to Article Nine

                (i) Section 9.02(e)(iv) shall be deleted and replaced with the following:

-25-

        "(iv) waive a Default or Event of Default in the payment of principal of, or
interest, or premium, or Additional Interest, if any, on, the Notes (except a
rescission of acceleration of the Notes by the Holders of at least a majority in
aggregate principal amount of the Notes and a waiver of the payment default that
resulted from such acceleration);"

                (ii) Section 9.02(e)(vi) shall be deleted and replaced with the following:

        "(vi) make any change in the provisions of this Indenture relating to waivers
of past Defaults or the rights of Holders of the Notes to receive payments of
principal of, or interest or premium, or Additional Interest, if any, on the
Notes;"

        (j) Amendments to Article Ten

                (i) Section 10.01(a)(ii)(A) shall be deleted and replaced with the
following:

        "(A) the Person acquiring the property in any such sale or disposition or the
Person formed by or surviving any such consolidation or merger (if other than
the Guarantor) is a corporation organized or existing under the laws of the
United States, any state thereof or the District of Columbia and assumes all the
obligations of that Guarantor under this Indenture or its Note Guarantee and the
Registration Rights Agreement pursuant to a supplemental indenture satisfactory
to the Trustee; or"

        (k) Amendments to Article Eleven

                (i) Section 11.01(a)(i)(B) shall be deleted and replaced with the
following:

        "(B) all Notes that have not been delivered to the Trustee for cancellation
have become due and payable by reason of the making of a notice of redemption or
otherwise or shall become due and payable within one year and the Company or any
Guarantor have irrevocably deposited or caused to be deposited with the Trustee
as trust funds in trust solely for the benefit of the Holders of the Notes, cash
in U.S. dollars, non-callable U.S. Government Obligations, or a combination
thereof, in such amounts as shall be sufficient without consideration of any
reinvestment of interest, to pay and discharge the entire indebtedness on the
Notes not delivered to the Trustee for cancellation for principal, premium and
Additional Interest, if any, and accrued interest to the date of maturity or
redemption;"

                (ii) Section 11.02 shall be deleted and replaced with the following:

        "Subject to Section 11.03 hereof, all money and non-callable U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee pursuant
to Section 11.01 hereof in respect of the outstanding Notes shall be held in
trust and applied by the Trustee, in accordance with the provisions of such
Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as Paying Agent) as the Trustee may
determine, to the Holders of such Notes of all sums due and to become due
thereon 

-26-

in respect of principal, premium and Additional Interest, if any, and
interest, but such money need not be segregated from other funds except to the
extent required by law."

                (iii) Section 11.03 shall be deleted and replaced with the following:

        "Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium, if any,
interest or Additional Interest, if any, on any Note and remaining unclaimed for
two years after such principal, and premium, if any, interest or Additional
Interest, if any has become due and payable shall be paid to the Company on its
request or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Note shall thereafter look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New York
Times or The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining shall be repaid to the Company."

        (l) Amendments to Article Twelve

                (i) Section 12.08(a) shall be deleted and replaced with the following:

        "(a) impair, as between the Company and Holders of Notes, the obligation of
the Company, which is absolute and unconditional, to pay principal of and
interest and Additional Interest, if any, on the Notes in accordance with their
terms;"

                (ii) The last paragraph of Section 12.08 shall be deleted and replaced
with the following:

        "If the Company fails because of this Article Twelve to pay principal of or
interest or Additional Interest, if any, on a Note on the due date, the failure
is still a Default or Event of Default."

        (m) Amendments to Exhibits

            (i) Exhibit A of the Existing Indenture shall be deleted and replaced with
Exhibit A of this First Supplement.

            (ii) Exhibits B, C and D to this First Supplement shall be added as Exhibits
B, C and D, respectively, to the Existing Indenture.

Section 3. RATIFICATION OF EXISTING INDENTURE; FIRST SUPPLEMENT PART OF
EXISTING INDENTURE

        Except as expressly amended hereby, the Existing Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full 

-27-

force and effect. Upon the execution and delivery of this
First Supplement by the Company, and the Trustee, this First Supplement shall
form a part of the Existing Indenture for all purposes, and the Company the
Trustee and every Holder of Notes heretofore or hereafter authenticated and
delivered shall be bound hereby. Any and all references to the Existing
Indenture, whether within the Existing Indenture or in any notice, certificate
or other instrument or document, shall be deemed to include a reference to this
First Supplement (whether or not made), unless the context shall otherwise
require. 

Section 4. NO EXCHANGE OF EXISTING NOTES REQUIRED. 

        The execution of this First Supplemental shall not require the exchange of or
modification to the certificates representing Notes existing prior to the date
hereof. 

Section 5. GOVERNING LAW. 

        THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE
THE EXISTING INDENTURE, THIS FIRST SUPPLEMENT AND THE NOTES WITHOUT GIVING
EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

Section 6. SUCCESSORS. 

        All agreements of the Company in this First Supplement shall bind their
successors. All agreements of the Trustee in this First Supplement shall bind
its successors. 

Section 7. SEVERABILITY. 

        In case any provision in this First Supplement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby. 

Section 8. COUNTERPARTS. 

        The parties may sign any number of copies of this First Supplement. Each
signed copy shall be an original, but all of them together represent the same
agreement. 

Section 9. EFFECT OF HEADINGS. 

        The Section headings herein are for convenience only and shall not affect the
construction hereof. 

Section 10. THE TRUSTEE. 

        The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this First Supplement or for or in
respect of the recitals contained herein, all of which recitals are made solely
by the Company. 

-28-

Section 11. ENTIRE AGREEMENT. 

        This First Supplement, together with the Existing Indenture as amended hereby
and the Notes, contains the entire agreement of the parties, and supersedes all
other representations, warranties, agreements and understandings between the
parties, oral or otherwise, with respect to the matters contained herein and
therein. 

Section 12. BENEFITS OF FIRST SUPPLEMENT. 

        Nothing in this First Supplement, the Existing Indenture or the Notes express
or implied, shall give to any Person, other than the parties hereto and thereto
and their successors hereunder and thereunder, any Paying Agent, any Registrar
and the Holders, any benefit of any legal or equitable right, remedy or claim
under the Existing Indenture, this First Supplement or the Notes. 

[Signatures on following page] 

-29-

	 	SIGNATURES
		
	Dated as of September 12, 2005	 
	 	MOOG INC.
	 	 	 
	 	
		By 

		
			
		/s/ Robert T. Brady
	 	 	Name: Robert T. Brady 

		Title: Chief Executive Officer
	 	 
	 	TRUSTEE, 
	 	 
	 	
		JPMORGAN CHASE BANK, N.A. 

	 	 	 
	 	By 	
		/s/ Paul J. Schmalzel
	 	 	Name: Paul J. Schmalzel

		Title:    Vice President

-30-

EXHIBIT A

[Face of Note]

THIS GLOBAL NOTE IS HELD BY THE DEPOSITORY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY
BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY
BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE
MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITORY WITH THE PRIOR WRITTEN CONSENT OF
THE Company.

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER
THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF
THIS NOTE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS
NOTE) (THE "RESALE RESTRICTION TERMINATION DATE") ONLY (A) TO THE COMPANY OR ANY
SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT
REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND
THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO
CLAUSE (D) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN
THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E)
PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION

A-1

SATISFACTORY TO EACH
OF THEM, AND (ii) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE
OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A
HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

[Additional language for Regulation S Note to be
inserted after paragraph 1]

THE RIGHTS ATTACHING TO THIS REGULATION S GLOBAL NOTE, AND
THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE
AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). 

 

A-2

 

                                                                                                                                                                                                                    CUSIP: [●]

No. [●]                                                                                                                                                                                                         **$50,000,000**

MOOG INC.

6.250% SENIOR SUBORDINATED NOTES DUE 2015

Issue Date: [●]

        Moog Inc., a New York Corporation (the "Company," which term includes
any successor under the Indenture hereinafter referred to), for value received,
promises to pay to CEDE & CO., or its registered assigns, the principal sum of
FIFTY MILLION Dollars ($50,000,000) on January 15, 2015.

Interest Payment Dates: January 15 and July 15, commencing January 15, 2006.

Record Dates: January 1 and July 1.

        Reference is hereby made to the further provisions of this Note set forth on
the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

[SIGNATURE PAGE FOLLOWS]

 

A-3

        IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or
by facsimile by its duly authorized officer.

	 	MOOG INC., a New York
												corporation
	 	 	 
	 	By: 
			 	 
	 	 	Name: 
	 	 	Title: 
	Attest:	 
	 	 	 	 
	By:

			 	 	 
	 	Name: 	 
	 	Title: 	 

A-4

(Trustee's Certificate of Authentication)

This is one of the 6.250% Senior Subordinated Notes due 2015 described in the
within-mentioned Indenture.

Dated: 

JPMorgan Chase Bank, N.A.,

as Trustee

By: __________________________________

     
Authorized Signatory

A-5

 

[Reverse Side of Note]

MOOG INC.

6.250% Senior Subordinated Notes due 2015

        Capitalized terms used herein shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated.

        1. Interest. The Company promises to pay interest on the principal
amount of this Note at 6.250% per annum from the date hereof until maturity and
shall pay the Additional Interest, if any, payable pursuant to Section 5 of the
Registration Rights Agreement referred to below. The Company shall pay interest
and Additional Interest, if any, semi-annually in arrears on January 15 and July
15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each an "Interest Payment Date"). Interest on
the Notes shall accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from the date of original issuance; 
provided that if there is no existing Default in the payment of interest,
and if this Note is authenticated between a record date referred to on the face
hereof and the next succeeding Interest Payment Date, interest shall accrue from
such next succeeding Interest Payment Date; provided further that
the first Interest Payment Date shall be January 15, 2006. The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal from time to time on demand at a rate equal
to 1% per annum in excess of the then applicable interest rate on this Note to
the extent lawful; it shall pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue installments of interest and
Additional Interest (without regard to any applicable grace periods) from time
to time on demand at the same rate to the extent lawful. Interest shall be
computed on the basis of a 360-day year of twelve 30-day months.

        2. Method of Payment. The Company shall pay interest on the Notes
(except defaulted interest) and Additional Interest, if any, to the Persons who
are registered Holders of Notes at the close of business on the record date
immediately preceding the Interest Payment Date, even if such Notes are canceled
after such record date and on or before such Interest Payment Date, except as
provided in Section 2.13 of the Indenture with respect to defaulted interest. If
a Holder has given wire transfer instructions to the Company, the Company shall
pay all principal, interest and premium, and Additional Interest, if any, on
that Holder's Notes in accordance with those instructions. All other payments on
Notes shall be made at the office or agency of the Paying Agent and Registrar
within the City and State of New York unless the Company elects to make interest
payments by check mailed to the Holders at their addresses set forth in the
register of Holders. Such payment shall be in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts.

        3. Paying Agent and Registrar. Initially, the Trustee under the
Indenture shall act as Paying Agent and Registrar. The Company may change any
Paying Agent or Registrar without prior notice to any Holder. The Company or any
of its Subsidiaries may act in any such capacity.

        4. Indenture. The Company issued the Notes under an Indenture dated as
of January 10, 2005, as supplemented by the First Supplement to the Indenture
dated as of [●], 

A-6

2005 (the "Indenture") between the Company and the
Trustee. The terms of the Notes include those stated in the Indenture and those
specifically made part of the Indenture by reference to the Trust Indenture Act
of 1939, as amended. The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Indenture pursuant to which this Note is issued provides that an unlimited
aggregate principal amount of Additional Notes may be issued thereunder.

        5. Optional Redemption. (a) Except as set forth in paragraphs 5(b) and
(c) below, the Company shall not have the option to redeem the Notes prior to
January 15, 2010. On or after January 15, 2010, the Company may redeem all or
part of the Notes, at the redemption prices (expressed as percentages of
principal amount) set forth below, plus accrued and unpaid interest and
Additional Interest, if any, thereon to the applicable redemption date, if
redeemed during the twelve-month period beginning on January 15 of the years
indicated below:

	Year	Percentage
	2010 	
		103.125%

	2011 	
		102.083%

	2012 	
		101.042%

	2013 and thereafter 	
		100.000%

        (b) At any time prior to January 15, 2008, the Company may, on any one or
more occasions, redeem up to 35% of the aggregate principal amount of Notes
issued under the Indenture (including any Additional Notes) at a redemption
price of 106.250% of the principal amount thereof, plus accrued and unpaid
interest and Additional Interest, if any, thereon to the applicable redemption
date, with the net cash proceeds of one or more Equity Offerings; provided
that (1) at least 65% of the aggregate principal amount of Notes issued under
the Indenture (including any Additional Notes) remains outstanding immediately
after the occurrence of such redemption, excluding Notes held by the Company and
its Subsidiaries; and (2) the redemption must occur within 120 days of the date
of the closing of such Equity Offering. 

        (c) At any time prior to January 15, 2010, the Company may redeem all or part
of the Notes upon not less than 30 nor more than 60 days' prior notice at a
redemption price equal to the sum of (i) 100% of the principal amount thereof,
plus (ii) the Applicable Premium as of the date of redemption, plus
(iii) accrued and unpaid interest, if any, to the date of redemption. 

        6. Repurchase at Option of Holder. Upon the occurrence of (a) a Change
of Control, the Holders of the Notes shall have the right to require the Company
to purchase such Holder's outstanding Notes on the terms set forth in the
Indenture and (b) an Asset Sale, the Company may be obligated to make offers to
purchase Notes with a portion of the Net Proceeds of such Asset Sale on the
terms set forth in the Indenture.

        7. Denominations, Transfer, Exchange. The Notes are in registered form
without coupons in minimum denominations of $1,000 and integral multiples
thereof. The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture. The Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate 

A-7

endorsements and transfer documents
and the Company may require a Holder to pay any taxes and fees required by law
or permitted by the Indenture. The Company is not required to transfer or
exchange any Note selected for redemption. 

        8. Persons Deemed Owners. The registered Holder of a Note shall be
treated as its owner for all purposes.

        9. Amendment, Supplement and Waiver. The Indenture and the Notes may
be amended or supplemented and any existing default or compliance with any
provision of the Indenture or the Notes may be waived only in accordance with
the Indenture.

        10. Defaults and Remedies. In the case of an Event of Default arising
from events of bankruptcy or insolvency specified in the Indenture, all
outstanding Notes may become due and payable in the manner and with the effect
provided in the Indenture.

        11. Trustee Dealings with the Company. The Trustee in its individual
or any other capacity may become the owner or pledgee of Notes and may become a
creditor of, or otherwise deal with the Company or any of its Affiliates, with
the same rights it would have if it were not Trustee.

        12. No Recourse Against Others. No director, officer, employee,
incorporator, member, manager, partner or stockholder of the Company or any
Guarantor, as such, shall have any liability for any obligations of the Company
or any Guarantors under the Notes, the Indenture, the Note Guarantees or for any
claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Notes by accepting a Note waives and releases all such
liability. This waiver and release are part of the consideration for issuance of
the Notes.

        13. Authentication. This Note shall not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.

        14. Additional Rights of Holders of Restricted Global Notes and Restricted
Definitive Notes. In addition to the rights provided to Holders under the
Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes
shall have all the rights set forth in the Registration Rights Agreement.

        15. CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

        16. Copies of Documents. The Company shall furnish to any Holder upon
written request and without charge a copy of the Indenture and/or the
Registration Rights Agreement. Requests may be made to:

A-8

	Moog Inc.

	6860 Seneca Street

	P.O. Box 18

	East Aurora, New York 14052-0018

	Attention: Chief Financial Officer

	 

A-9

ASSIGNMENT FORM

	To assign this Note, fill in the form below:
	 
	(I) or (we) assign and transfer this Note to:
			 
	 	
		(Insert assignee's legal name)

	
	 
	

(Insert assignee's soc. sec. or tax I.D. no.)

		
	
	
	
	
	 
	 
	 
	 
	

(Print or type assignee's name, address and zip code)

		
	 
	and irrevocably appoint 	 	 
	 
	to transfer this Note on the books of the Company. The agent may substitute
another to act for him.
	 
	Date: _____________
	 
	Your Signature: 	 	 	 
	

(Sign exactly as your name appears on the face of this Note)

		
	 
	Signature Guarantee*: _______________________
	 
	* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

A-10

OPTION OF HOLDER TO ELECT PURCHASE

        If you want to elect to have this Note purchased by the Company pursuant to
Section 4.10(c) or 4.14 of the Indenture, respectively, check the appropriate
box below:

                        �Section 4.10(c)             �Section 4.14

        If you want to elect to have only part of the Note purchased
by the Company pursuant to Section 4.10(c) or Section 4.14 of the Indenture,
respectively, state the amount you elect to have purchased:

                                        $_________________

Date: ______________________

													 	Your
														Signature: 	 
	 	 	

														(Sign exactly as your
														name appears on the face
														of this Note)
	 	 
	 	Tax
														Identification No.:
														____________________________

Signature Guarantee*: _______________________

		* Participant in a recognized Signature Guarantee Medallion Program
		(or other signature guarantor acceptable to the Trustee).

A-11

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Moog Inc.

6860 Seneca Street

P. O. Box 18

East Aurora, New York 14052-0018

Attention: Chief Financial Officer

Facsimile: (716) 687-4457

JPMorgan Chase Bank, N.A.

4 New York Plaza, 15th Floor

New York, New York 10004

Attention: Worldwide Securities Services

Facsimile: (212) 623-6167

Re: 6.250% Senior Subordinated Notes due 2015

        Reference is hereby made to the Indenture, dated as of January 10, 2005 (the
"Indenture"), among Moog Inc., a New York corporation (the "Company")
and JPMorgan Chase Bank, N.A., as trustee. Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

        ___________________ (the "Transferor") owns and proposes to transfer
the Note[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount at maturity of $___________ in such Note[s] or interests (the "Transfer"),
to ________________ (the "Transferee"), as further specified in Annex A
hereto. In connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

   □
1. Check if Transferee will take delivery
of a beneficial interest in the 144A Global Note or a Definitive Note Pursuant
to Rule 144A. The Transfer is being effected pursuant to and in accordance
with Rule 144A under the Securities Act of 1933, as amended (the "Securities
Act"), and, accordingly, the Transferor hereby further certifies that the
beneficial interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believed and believes is purchasing the beneficial
interest or Definitive Note for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and such
Person and each such account is a "qualified institutional buyer" within the
meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and
such Transfer is in compliance with any applicable blue sky securities laws of
any state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the 144A Global Note and/or the
Definitive Note and in the Indenture and the Securities Act.

 

B-1

        □ 2. Check if Transferee will take delivery of a beneficial
interest in a Legended Regulation S Global Note, or a Definitive Note pursuant
to Regulation S. The Transfer is being effected pursuant to and in
accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly,
the Transferor hereby further certifies that (i) the Transfer is not being made
to a person in the United States and (x) at the time the buy order was
originated, the Transferee was outside the United States or such Transferor and
any Person acting on its behalf reasonably believed and believes that the
Transferee was outside the United States or (y) the transaction was executed in,
on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule
903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) the transfer is not being made to a
U.S. Person or for the account or benefit of a U.S. Person (other than the
Initial Purchaser). Upon consummation of the proposed transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Legended Regulation S Global Note
and/or the Definitive Note and in the Indenture and the Securities Act.

    

□  3. Check and complete if Transferee will take delivery of a
Restricted Definitive Note pursuant to any provision of the Securities Act other
than Rule 144, Rule 144A or Regulation S. The Transfer is being effected in
compliance with the transfer restrictions applicable to beneficial interests in
Restricted Global Notes and Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act and any applicable blue sky securities laws
of any state of the United States, and accordingly the Transferor hereby further
certifies that (check one):

           
□ (a) such Transfer is being effected to the Company or a subsidiary
thereof; or

           
□ (b) such Transfer is being effected to an Institutional Accredited
Investor and pursuant to an exemption from the registration requirements of the
Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor
hereby further certifies that it has not engaged in any general solicitation
within the meaning of Regulation D under the Securities Act and the Transfer
complies with the transfer restrictions applicable to Restricted Definitive
Notes and the requirements of the exemption claimed, which certification is
supported by (1) a certificate executed by the Transferee in the form of 
Exhibit D to the Indenture and (2) an Opinion of Counsel provided by the
Transferor or the Transferee (a copy of which the Transferor has attached to
this certification), to the effect that such Transfer is in compliance with the
Securities Act. Upon consummation of the proposed transfer in accordance with
the terms of the Indenture, the transferred Definitive Note will be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed
on the Definitive Notes and in the Indenture and the Securities Act.

B-2

       
□ 4. Check if Transferee will take delivery of a beneficial
interest in an Unrestricted Global Note or of an Unrestricted Definitive Note.

            □ (a) Check if Transfer is Pursuant to Rule 144. (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will no longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

            □(b) Check if Transfer is Pursuant to Regulation S. (i) The Transfer
is being effected pursuant to and in accordance with Rule 903 or Rule 904 under
the Securities Act and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any state of the
United States and, in the case of a transfer from a Restricted Global Note or a
Restricted Definitive Note, the Transferor hereby further certifies that (a) the
Transfer is not being made to a person in the United States and (x) at the time
the buy order was originated, the Transferee was outside the United States or
such Transferor and any Person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any Person acting on
its behalf knows that the transaction was prearranged with a buyer in the United
States, (b) no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities
Act, (c) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act and (d) the transfer is not
being made to a U.S. Person or for the account or benefit of a U.S. Person, and
(ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will no longer be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes, on Restricted
Definitive Notes and in the Indenture.

            □ (c) Check if Transfer is Pursuant to Other Exemption. (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule
903 or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will not be subject to 

B-3

the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes or Restricted Definitive Notes and in the Indenture.

        This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

	 	Dated: 	 
	 	 
	 	[Insert Name of Transferor]
	 	By: 
			 
	 	 	Name:
	 	 	Title:
	DTC Participant No. _________	 

B-4

ANNEX A TO CERTIFICATE OF TRANSFER

1. The Transferor owns and proposes to transfer the
				following:

                [CHECK ONE OF (a) OR (b)]

□       (a)    a beneficial interest in the:

            (i)     144A Global Note (CUSIP __________); or

            (ii)    Regulation S Global Note (CUSIP __________);
								or

□       (b)     a Restricted Definitive Note.

2. After the Transfer the Transferee will hold:

                [CHECK ONE]

□       (a)     a beneficial interest in the:

            (i)     144A Global Note (CUSIP __________); or

            (ii)     Regulation S Global Note (CUSIP __________); or

            (iii)     Unrestricted Global Note (CUSIP __________); or

□        (b) a Restricted Definitive Note; or

□        (c) an Unrestricted Definitive Note,

in accordance with the terms of the Indenture.

B-5

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Moog Inc.

6860 Seneca Street

P. O. Box 18

East Aurora, New York 14052-0018

Attention: Chief Financial Officer

Facsimile: (716) 687-4457

JPMorgan Chase Bank, N.A.

4 New York Plaza, 15th Floor

New York, New York 10004

Attention: Worldwide Securities Services

Facsimile: (212) 623-6167

Re: 6.250% Senior Subordinated Notes due 2015

        Reference is hereby made to the Indenture, dated as of January 10, 2005 (the
"Indenture"), among Moog Inc., a New York corporation (the "Company")
and JPMorgan Chase Bank, N.A., as trustee. Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

        __________________________ (the "Owner") owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount at maturity of $____________ in such Note[s] or interests (the "Exchange").
In connection with the Exchange, the Owner hereby certifies that:

        1. Exchange of Restricted Definitive Notes or Beneficial Interests in a
Restricted Global Note for Unrestricted Definitive Notes or Beneficial Interests
in an Unrestricted Global Note

        □  (a) Check if Exchange is from beneficial interest in a Restricted
Global Note to beneficial interest in an Unrestricted Global Note. In connection
with the Exchange of the Owner's beneficial interest in a Restricted Global Note
for a beneficial interest in an Unrestricted Global Note in an equal principal
amount at maturity, the Owner hereby certifies (i) the beneficial interest is
being acquired for the Owner's own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the
Global Notes and pursuant to and in accordance with the United States Securities
Act of 1933, as amended (the "Securities Act"), (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

C-1

        □  (b) Check if Exchange is from beneficial interest in a Restricted
Global Note to Unrestricted Definitive Note. In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for an Unrestricted
Definitive Note, the Owner hereby certifies (i) the Definitive Note is being
acquired for the Owner's own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to the
Restricted Global Notes and pursuant to and in accordance with the Securities
Act, (iii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

        □  (c) Check if Exchange is from Restricted Definitive Note to
beneficial interest in an Unrestricted Global Note. In connection with the
Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an
Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

        □  (d) Check if Exchange is from Restricted Definitive Note to
Unrestricted Definitive Note. In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner's
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (ate PlLegend are ed in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

        2. Exchange of Restricted Definitive Notes or Beneficial Interests in
Restricted Global Notes for Restricted Definitive Notes or Beneficial Interests
in Restricted Global Notes

        □  (a) Check if Exchange is from beneficial interest in a Restricted
Global Note to Restricted Definitive Note. In connection with the Exchange of
the Owner's beneficial interest in a Restricted Global Note for a Restricted
Definitive Note with an equal principal amount at maturity, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner's
own account without transfer. Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Definitive Note 

C-2

and in
the Indenture and the Securities Act.

        □  (b) Check if Exchange is from Restricted Definitive Note to
beneficial interest in a Restricted Global Note. In connection with the Exchange
of the Owner's Restricted Definitive Note for a beneficial interest in the
[CHECK ONE] :

         
□ 144A Global Note:

        Regulation S Global Note:

with an equal principal amount at  maturity,
				the Owner hereby certifies (i) the beneficial interest is being
				acquired for the Owner's own account without transfer and (ii)
				such Exchange has been effected in compliance with the transfer
				restrictions applicable to the Restricted Global Notes and
				pursuant to and in accordance with the Securities Act, and in
				compliance with any applicable blue sky securities laws of any
				state of the United States. Upon consummation of the proposed
				Exchange in accordance with the terms of the Indenture, the
				beneficial interest issued will be subject to the restrictions
				on transfer enumerated in the Private Placement Legend printed
				on the relevant Restricted Global Note and in the Indenture and
				the Securities Act.

This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

	 	Dated: 	 
	 	 
	 	[Insert Name of Transferor]
	 	By: 
			 
	 	 	Name:
	 	 	Title:
	DTC Participant No. _________	 

C-3

EXHIBIT D

FORM OF CERTIFICATE FROM
ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Moog Inc.

6860 Seneca Street

P. O. Box 18

East Aurora, New York 14052-0018

Attention: Chief Financial Officer

Facsimile: (716) 687-4457

JPMorgan Chase Bank, N.A.

4 New York Plaza, 15th Floor

New York, New York 10004

Attention: Worldwide Securities Services

Facsimile: (212) 623-6167

Re: 6.250% Senior Subordinated Notes due 2015

        Reference is hereby made to the Indenture, dated as of January 10, 2005 (the
"Indenture"), among Moog Inc., a New York corporation (the "Company"),
the Guarantors, and JPMorgan Chase Bank, N.A. as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

        In connection with our proposed purchase of $____________ aggregate principal
amount of:

        (a)     □    beneficial interest in a Global Note, or

        (b)     □    a Definitive Note,

we confirm that:

        1. We understand that any subsequent transfer of the Notes or any interest
therein is subject to certain restrictions and conditions set forth in the
Indenture and the undersigned agrees to be bound by, and not to resell, pledge
or otherwise transfer the Notes or any interest therein except in compliance
with, such restrictions and conditions and the Securities Act of 1933, as
amended (the "Securities Act").

        2. We understand that the offer and sale of the Notes have not been
registered under the Securities Act, and that the Notes and any interest therein
may not be offered or sold except as permitted in the following sentence. We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest therein,
we shall do so only (A) to the Company or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a "qualified institutional
buyer" (as defined therein), (C) to an institutional "accredited investor" (as
defined below) that, prior to such transfer, furnishes (or has furnished on its
behalf by a U.S. broker-dealer) to you and to the Company a signed letter
substantially in the form of this letter and an Opinion of Counsel 

C-4

in form
reasonably acceptable to the Company to the effect that such transfer is in
compliance with the Securities Act, (D) outside the United States in accordance
with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the
provisions of Rule 144(k) under the Securities Act or (F) pursuant to an
effective registration statement under the Securities Act, and we further agree
to provide to any person purchasing the Definitive Note or beneficial interest
in a Global Note from us in a transaction meeting the requirements of clauses
(A) through (E) of this paragraph a notice advising such purchaser that resales
thereof are restricted as stated herein.

        3. We understand that, on any proposed resale of the Notes or beneficial
interest therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect.

        4. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Notes, and we and
any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

        5. We are acquiring the Notes or beneficial interest therein purchased by us
for our own account or for one or more accounts (each of which is an
institutional "accredited investor") as to each of which we exercise sole
investment discretion.

        The Trustee and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

	Dated: 	 
	 	[Insert Name of Accredited
												Investor]
	 	 	 
	 	By: 
			 
	 	 	Name:
	 	 	Title:

C-5

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