Document:

GUARANTEE AND COLLATERAL AGREEMENT

dated as of

June 23, 2006,

among

TRANSDIGM INC.,

TRANSDIGM GROUP
INCORPORATED,

the Subsidiaries of TRANSDIGM INC. identified herein,

and

CREDIT SUISSE,

as Administrative Agent and Collateral Agent

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Definitions

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
   

  	
  Credit Agreement

  	
   

  	
  1

  
	
  SECTION 1.02.

  	
   

  	
  Other Defined Terms

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Guarantee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  Guarantee

  	
   

  	
  6

  
	
  SECTION 2.02.

  	
   

  	
  Guarantee of Payment

  	
   

  	
  7

  
	
  SECTION 2.03.

  	
   

  	
  No Limitations, Etc

  	
   

  	
  7

  
	
  SECTION 2.04.

  	
   

  	
  Reinstatement

  	
   

  	
  8

  
	
  SECTION 2.05.

  	
   

  	
  Agreement To Pay; Subrogation

  	
   

  	
  8

  
	
  SECTION 2.06.

  	
   

  	
  Information

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pledge of
  Securities

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
   

  	
  Pledge

  	
   

  	
  8

  
	
  SECTION 3.02.

  	
   

  	
  Delivery of the Pledged Collateral

  	
   

  	
  9

  
	
  SECTION 3.03.

  	
   

  	
  Representations, Warranties and Covenants

  	
   

  	
  10

  
	
  SECTION 3.04.

  	
   

  	
  Certification of Limited Liability Company Interests
  and Limited Partnership Interests

  	
   

  	
  11

  
	
  SECTION 3.05.

  	
   

  	
  Registration in Nominee Name; Denominations

  	
   

  	
  11

  
	
  SECTION 3.06.

  	
   

  	
  Voting Rights; Dividends and Interest, etc

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Security
  Interests in Personal Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  Security Interest

  	
   

  	
  13

  
	
  SECTION 4.02.

  	
   

  	
  Representations and Warranties

  	
   

  	
  15

  
	
  SECTION 4.03.

  	
   

  	
  Covenants

  	
   

  	
  17

  
	
  SECTION 4.04.

  	
   

  	
  Other Actions

  	
   

  	
  20

  
	
  SECTION 4.05.

  	
   

  	
  Covenants regarding Patent, Trademark and Copyright
  Collateral

  	
   

  	
  22

  

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Remedies

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  Remedies upon Default

  	
   

  	
  23

  
	
  SECTION 5.02.

  	
   

  	
  Application of Proceeds

  	
   

  	
  25

  
	
  SECTION 5.03.

  	
   

  	
  Grant of License to Use Intellectual Property

  	
   

  	
  26

  
	
  SECTION 5.04.

  	
   

  	
  Securities Act, etc

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VI

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Indemnity,
  Subrogation and Subordination

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
   

  	
  Indemnity and Subrogation

  	
   

  	
  27

  
	
  SECTION 6.02.

  	
   

  	
  Contribution and Subrogation

  	
   

  	
  27

  
	
  SECTION 6.03.

  	
   

  	
  Subordination

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Miscellaneous

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  Notices

  	
   

  	
  28

  
	
  SECTION 7.02.

  	
   

  	
  Security Interest Absolute

  	
   

  	
  28

  
	
  SECTION 7.03.

  	
   

  	
  Survival of Agreement

  	
   

  	
  28

  
	
  SECTION 7.04.

  	
   

  	
  Binding Effect; Several Agreement

  	
   

  	
  28

  
	
  SECTION 7.05.

  	
   

  	
  Successors and Assigns

  	
   

  	
  29

  
	
  SECTION 7.06.

  	
   

  	
  Agent’s Fees and Expenses; Indemnification

  	
   

  	
  29

  
	
  SECTION 7.07.

  	
   

  	
  Agent Appointed Attorney-in-Fact

  	
   

  	
  30

  
	
  SECTION 7.08.

  	
   

  	
  Applicable Law

  	
   

  	
  30

  
	
  SECTION 7.09.

  	
   

  	
  Waivers; Amendment

  	
   

  	
  30

  
	
  SECTION 7.10.

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  31

  
	
  SECTION 7.11.

  	
   

  	
  Severability

  	
   

  	
  31

  
	
  SECTION 7.12.

  	
   

  	
  Counterparts

  	
   

  	
  31

  
	
  SECTION 7.13.

  	
   

  	
  Headings

  	
   

  	
  32

  
	
  SECTION 7.14.

  	
   

  	
  Jurisdiction; Consent to Service of Process

  	
   

  	
  32

  
	
  SECTION 7.15.

  	
   

  	
  Termination or Release

  	
   

  	
  32

  
	
  SECTION 7.16.

  	
   

  	
  Additional Grantors

  	
   

  	
  33

  
	
  SECTION 7.17.

  	
   

  	
  Right of Setoff

  	
   

  	
  33

  

 

 2
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Schedules

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule I

  	
   

  	
  Subsidiary Guarantors

  	
   

  	
   

  
	
  Schedule II

  	
   

  	
  Capital Stock; Debt Securities

  	
   

  	
   

  
	
  Schedule III

  	
   

  	
  Intellectual Property

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of Supplement

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of Perfection Certificate

  	
   

  	
   

  

 

 3

 

GUARANTEE AND COLLATERAL
AGREEMENT dated as of June 23, 2006, among TRANSDIGM INC., a Delaware
corporation (the “Borrower”), TRANSDIGM GROUP INCORPORATED, a
Delaware corporation (“Holdings”), the Subsidiaries of the Borrower
identified herein and CREDIT SUISSE as administrative agent and collateral
agent (in such capacity, the “Agent”).

PRELIMINARY
STATEMENT

Reference
is made to the Credit Agreement dated as of June 23, 2006 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, Holdings,
each subsidiary of the Borrower from time to time party thereto, the Lenders
(as defined therein) and the Agent. The Lenders have agreed to extend credit to
the Borrower pursuant to, and upon the terms and conditions specified in, the
Credit Agreement. The obligations of the Lenders to extend such credit to the
Borrower are conditioned upon, among other things, the execution and delivery
of this Agreement by Holdings, the Borrower and the Subsidiary Guarantors. Holdings
and the Subsidiary Guarantors are affiliates of the Borrower, will derive
substantial benefits from the extension of credit to the Borrower pursuant to
the Credit Agreement and are willing to execute and deliver this Agreement in
order to induce the Lenders to extend such credit.

Accordingly,
the parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01. Credit Agreement. (a)  Capitalized terms
used in this Agreement and not otherwise defined herein have the meanings set
forth in the Credit Agreement. All terms defined in the New York UCC (as such
term is defined herein) and not defined in this Agreement have the meanings
specified therein. All references to the Uniform Commercial Code shall mean the
New York UCC.

(b) The rules of construction specified in Section 1.03
of the Credit Agreement also apply to this Agreement.

SECTION 1.02. Other Defined Terms. As used in this
Agreement, the following terms have the meanings specified below:

“Account”
has the meaning assigned to such term in Section 9-102 of the New
York UCC.

“Account Debtor”
means any person who is or who may become obligated to any Grantor under, with
respect to or on account of an Account.

“Accounts Receivable”
shall mean all Accounts and all right, title and interest in any returned
goods, together will all rights, titles, securities and guarantees

 

 

with
respect thereto, including any rights to stoppage in transit, replevin,
reclamation and resales, and all related security interests, liens and pledges,
whether voluntary or involuntary, in each case whether now existing or owned or
hereafter arising or acquired.

 “Agent” has the meaning assigned to
such term in the preamble of this Agreement.

“Article 9 Collateral”
has the meaning assigned to such term in Section 4.01.

“Borrower”
has the meaning assigned to such term in the preamble of this Agreement.

“Claiming
Guarantor” has the meaning assigned to such term in Section 6.02.

“Collateral”
means the Article 9 Collateral and the Pledged Collateral.

 “Commercial Tort Claim” has the meaning
assigned to such term in Section 9-102 of the New York UCC.

“Commodity
Intermediary” has the meaning assigned to such term in Section 9-102
of the New York UCC.

“Contributing
Guarantor” has the meaning assigned to such term in Section 6.02.

“Controlled
Foreign Subsidiary” means a Foreign Subsidiary that is a “controlled
foreign corporation” as defined in Section 957(a) of the Code.

“Copyright License”
means any written agreement, now or hereafter in effect, granting any right to
any third party under any copyright now or hereafter owned by any Grantor or
that such Grantor otherwise has the right to license, or granting any right to
any Grantor under any copyright now or hereafter owned by any third party, and
all rights of such Grantor under any such agreement.

“Copyrights”
means all of the following now owned or hereafter acquired by any Grantor:  (a) all copyright rights in any work
subject to the copyright laws of the United States or any other country,
whether as author, assignee, transferee or otherwise, and (b) all
registrations and applications for registration of any such copyright in the
United States or any other country, including registrations, recordings,
supplemental registrations and pending applications for registration in the
United States Copyright Office (or any successor office or any similar office
in any other country), including those listed on Schedule III.

“Credit Agreement”
has the meaning assigned to such term in the preliminary statement of this
Agreement.

 2
 

 

 

 “Deposit Account” has the meaning
assigned to such term in Section 9-102 of the New York UCC.

“Electronic
Chattel Paper” has the meaning assigned to such term in Section 9-102
of the New York UCC.

“Entitlement
Holder” has the meaning assigned to such term in Section 8-102
of the New York UCC.

“Entitlement
Order” has the meaning assigned to such term in Section 8-102 of
the New York UCC.

“Equipment”
has the meaning assigned to such term in Section 9-102 of the New
York UCC.

“Equity Interests”
means Capital Stock and all warrants, options or other rights to acquire
Capital Stock, but excluding any debt security that is convertible into, or
exchangeable for, Capital Stock.

“Federal
Securities Laws” has the meaning assigned to such term in Section 5.04.

“Financial
Asset” has the meaning assigned to such term in Section 8-102 of
the New York UCC.

“General Intangibles”
has the meaning assigned to such term in Section 9-102 of the New
York UCC including, without limitation, all choses in action and causes of
action and all other intangible personal property of any Grantor of every kind
and nature (other than Accounts) now owned or hereafter acquired by any
Grantor, including all rights and interests in partnerships, limited
partnerships, limited liability companies and other unincorporated entities,
corporate or other business records, indemnification claims, contract rights
(including rights under leases, whether entered into as lessor or lessee,
Hedging Agreements and other agreements), all Intellectual Property, goodwill,
registrations, franchises, tax refund claims and any letter of credit,
guarantee, claim, security interest or other security held by or granted to any
Grantor to secure payment by an Account Debtor of any of the Accounts.

“Grantors”
means Holdings, the Borrower and the Subsidiary Guarantors.

“Guarantors”
means Holdings and the Subsidiary Guarantors.

“Holdings”
has the meaning assigned to such term in the preamble of this Agreement.

“Instrument”
has the meaning assigned to such term in Section 9-102 of the New
York UCC.

 3
 

 

 

“Intellectual Property”
means the collective reference to all rights, priorities and privileges
relating to intellectual and similar property of any Grantor of every kind and
nature now owned or hereafter acquired by any Grantor, whether arising under United
States, state, multinational or foreign laws or otherwise, including, without
limitation, inventions, designs, Patents, Copyrights, Licenses, Trademarks,
trade secrets, confidential or proprietary technical and business information,
know-how, show-how or other data or information, software and
databases and all embodiments or fixations thereof and related documentation,
registrations and franchises, and all additions, improvements and accessions
to, and books and records describing or used in connection with, any of the
foregoing.

“Inventory”
has the meaning assigned to such term in Section 9-102 of the New
York UCC.

“Investment
Property” has the meaning assigned to such term in Section 9-102
of the New York UCC.

“Lenders”
has the meaning assigned to such term in the preliminary statement of this
Agreement.

“Letter-of-Credit
Right” has the meaning assigned to such term in Section 9-102 of
the New York UCC.

“License”
means any Patent License, Trademark License, Copyright License or other license
or sublicense agreement to which any Grantor is a party, including those listed
on Schedule III.

“New York UCC”
means the Uniform Commercial Code as from time to time in effect in the State
of New York.

“Obligations”
means (a) the due and punctual payment of (i) the principal of and
interest (including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) on the Loans, when and as due, whether
at maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (ii) each payment required to be made by the Borrower under the
Credit Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral, and (iii) all other monetary
obligations of the Borrower to any of the Secured Parties under the Credit
Agreement and each of the other Loan Documents, including fees, costs, expenses
and indemnities, whether primary, secondary, direct, contingent, fixed or
otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding), (b) the due and punctual
performance of all other obligations of the Borrower under or pursuant to the
Credit Agreement and each of the other Loan Documents, and (c) the due and
punctual payment and performance of all the obligations

 4
 

 

 

of
each other Loan Party under or pursuant to this Agreement and each of the other
Loan Documents.

“Patent License”
means any written agreement, now or hereafter in effect, granting to any third
party any right to make, use or sell any invention on which a patent, now or
hereafter owned by any Grantor or that any Grantor otherwise has the right to
license, is in existence, or granting to any Grantor any right to make, use or
sell any invention on which a patent, now or hereafter owned by any third
party, is in existence, and all rights of any Grantor under any such agreement.

“Patents”
means all of the following now owned or hereafter acquired by any Grantor:  (a) all letters patent of the United
States or the equivalent thereof in any other country, all registrations and
recordings thereof, and all applications for letters patent of the United
States or the equivalent thereof in any other country, including registrations,
recordings and pending applications in the United States Patent and Trademark
Office (or any successor or any similar offices in any other country),
including those listed on Schedule III, and (b) all reissues,
continuations, divisions, continuations-in-part, renewals or extensions
thereof, and the inventions disclosed or claimed therein, including the right
to make, use and/or sell the inventions disclosed or claimed therein.

“Perfection Certificate”
means a certificate substantially in the form of Exhibit B, completed and
supplemented with the schedules and attachments contemplated thereby, and duly
executed by two Financial Officers.

“Pledged Collateral”
has the meaning assigned to such term in Section 3.01.

“Pledged Debt Securities”
has the meaning assigned to such term in Section 3.01.

“Pledged Securities”
means any promissory notes, stock certificates or other securities now or
hereafter included in the Pledged Collateral, including all certificates,
instruments or other documents representing or evidencing any Pledged
Collateral.

“Pledged Stock”
has the meaning assigned to such term in Section 3.01.

“Proceeds”
has the meaning assigned to such term in Section 9-102 of the New
York UCC.

“Secured
Obligations” means all Obligations, together with all Secured Hedging
Obligations.

“Secured Parties”
means (a) the Lenders, (b) the Agent, (c) any Issuing Bank, (d) each
counterparty to any Hedging Agreement with a Loan Party that either (i) is
in effect on the Closing Date if such counterparty is a Lender or an Affiliate
of a Lender as of the Closing Date or (ii) is entered into after the
Closing Date if such

 5
 

 

 

counterparty
is a Lender or an Affiliate of a Lender at the time such Hedging Agreement is
entered into, (e) the beneficiaries of each indemnification obligation
undertaken by any Loan Party under any Loan Document, (f) the successors
and assigns of each of the foregoing and (g) all former Lenders, Agents,
Issuing Banks or counterparties to the extent that any Obligations owing to
such Persons were incurred while such Persons were Lenders, Agents, Issuing
Banks or Counterparties and such Obligations have not been paid or satisfied in
full.

“Securities
Account” has the meaning assigned to such term in Section 8-501
of the New York UCC.

“Securities
Intermediary” has the meaning assigned to such term in Section 8-102
of the New York UCC.

“Security”
has the meaning assigned to such term in Section 8-102 of the New
York UCC.

“Security Interest”
has the meaning assigned to such term in Section 4.01.

“Subsidiary Guarantors”
means (a) the Subsidiaries identified on Schedule I and (b) each
other Subsidiary that becomes a party to this Agreement as a Subsidiary
Guarantor after the Closing Date.

“Trademark License”
means any written agreement, now or hereafter in effect, granting to any third
party any right to use any trademark now or hereafter owned by any Grantor or
that any Grantor otherwise has the right to license, or granting to any Grantor
any right to use any trademark now or hereafter owned by any third party, and
all rights of any Grantor under any such agreement.

“Trademarks”
means all of the following now owned or hereafter acquired by any Grantor:  (a) all trademarks, service marks, trade
names, corporate names, company names, business names, fictitious business
names, trade styles, trade dress, logos, other source or business identifiers,
designs and general intangibles of like nature, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and all
registration and recording applications filed in connection therewith,
including registrations and registration applications in the United States
Patent and Trademark Office (or any successor office) or any similar offices in
any State of the United States or any other country or any political
subdivision thereof, and all extensions or renewals thereof, including those
listed on Schedule III, (b) all goodwill associated therewith or
symbolized thereby and (c) all other assets, rights and interests that
uniquely reflect or embody such goodwill.

ARTICLE II

Guarantee

SECTION 2.01. Guarantee. Each Guarantor unconditionally
guarantees, jointly with the other Guarantors and severally, as a primary
obligor and not merely as a

 6
 

 

 

surety, the
due and punctual payment and performance of the Secured Obligations. Each of
the Guarantors further agrees that the Secured Obligations may be extended or
renewed, in whole or in part, without notice to or further assent from it, and
that it will remain bound upon its guarantee notwithstanding any extension or
renewal of any Secured Obligation. Each of the Guarantors waives presentment
to, demand of payment from and protest to the Borrower or any other Loan Party
of any of the Secured Obligations, and also waives notice of acceptance of its
guarantee and notice of protest for nonpayment.

SECTION 2.02. Guarantee of Payment. Each of the Guarantors
further agrees that its guarantee hereunder constitutes a guarantee of payment
when due and not of collection, and waives any right to require that any resort
be had by the Agent or any other Secured Party to any security held for the payment
of the Secured Obligations or to any balance of any Deposit Account or credit
on the books of the Agent or any other Secured Party in favor of the Borrower
or any other person.

SECTION 2.03. No Limitations, Etc. (a)  Except
for termination of a Guarantor’s obligations hereunder as expressly provided in
Section 7.15, the obligations of each Guarantor hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise,
and shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Secured Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each Guarantor hereunder shall
not be discharged or impaired or otherwise affected by (i) the failure of
the Agent or any other Secured Party to assert any claim or demand or to
enforce any right or remedy under the provisions of any Loan Document or
otherwise; (ii) any rescission, waiver, amendment or modification of, or
any release from any of the terms or provisions of, any Loan Document or any
other agreement, including with respect to any other Guarantor under this
Agreement; (iii) the release of any security held by the Agent or any
other Secured Party for the Secured Obligations or any of them; (iv) any
default, failure or delay, willful or otherwise, in the performance of the
Secured Obligations; or (v) any other act or omission that may or might in
any manner or to any extent vary the risk of any Guarantor or otherwise operate
as a discharge of any Guarantor as a matter of law or equity (other than the
indefeasible payment in full in cash of all the Secured Obligations). Each
Guarantor expressly authorizes the Agent to take and hold security for the
payment and performance of the Secured Obligations, to exchange, waive or
release any or all such security (with or without consideration), to enforce or
apply such security and direct the order and manner of any sale thereof in its
sole discretion or to release or substitute any one or more other guarantors or
obligors upon or in respect of the Secured Obligations, all without affecting
the obligations of any Guarantor hereunder.

(b) To the fullest extent permitted by applicable law, each
Guarantor waives any defense based on or arising out of any defense of the
Borrower or any other Loan Party or the unenforceability of the Secured
Obligations or any part thereof from any cause, or the cessation from any cause
of the liability of the Borrower or any other Loan Party, other than the
indefeasible payment in full in cash of all the Secured

 7
 

 

 

Obligations. The
Agent and the other Secured Parties may, at their election, foreclose on any
security held by one or more of them by one or more judicial or nonjudicial
sales, accept an assignment of any such security in lieu of foreclosure,
compromise or adjust any part of the Secured Obligations, make any other
accommodation with the Borrower or any other Loan Party or exercise any other
right or remedy available to them against the Borrower or any other Loan Party,
without affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Secured Obligations have been fully and
indefeasibly paid in full in cash. To the fullest extent permitted by
applicable law, each Guarantor waives any defense arising out of any such
election even though such election operates, pursuant to applicable law, to impair
or to extinguish any right of reimbursement or subrogation or other right or
remedy of such Guarantor against the Borrower or any other Loan Party, as the
case may be, or any security.

SECTION 2.04. Reinstatement. Each of the Guarantors agrees
that its guarantee hereunder shall continue to be effective or be reinstated,
as the case may be, if at any time payment, or any part thereof, of any Secured
Obligation is rescinded or must otherwise be restored by the Agent or any other
Secured Party upon the bankruptcy or reorganization of the Borrower, any other
Loan Party or otherwise.

SECTION 2.05. Agreement To Pay; Subrogation. In furtherance
of the foregoing and not in limitation of any other right that the Agent or any
other Secured Party has at law or in equity against any Guarantor by virtue
hereof, upon the failure of the Borrower or any other Loan Party to pay any
Secured Obligation when and as the same shall become due, whether at maturity,
by acceleration, after notice of prepayment or otherwise, each Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the Agent for
distribution to the applicable Secured Parties in cash the amount of such
unpaid Secured Obligation. Upon payment by any Guarantor of any sums to the
Agent as provided above, all rights of such Guarantor against the Borrower or
any other Guarantor arising as a result thereof by way of right of subrogation,
contribution, reimbursement, indemnity or otherwise shall in all respects be
subject to Article VI.

SECTION 2.06. Information. Each Guarantor assumes all
responsibility for being and keeping itself informed of the Borrower’s and each
other Loan Party’s financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Secured Obligations
and the nature, scope and extent of the risks that such Guarantor assumes and
incurs hereunder, and agrees that none of the Agent or the other Secured
Parties will have any duty to advise such Guarantor of information known to it
or any of them regarding such circumstances or risks.

ARTICLE III

Pledge of
Securities

SECTION 3.01. Pledge. As security for the payment or
performance, as the case may be, in full of the Secured Obligations, each
Grantor hereby pledges to the Agent, its successors and assigns, for the
benefit of the Secured Parties, and hereby grants to the Agent, its successors
and assigns, for the benefit of the Secured Parties, a security

 8
 

 

 

interest in,
all of such Grantor’s right, title and interest in, to and under (a) Equity
Interests owned by it and listed on Schedule II and any other Equity
Interests obtained in the future by such Grantor and the certificates
representing all such Equity Interests (the “Pledged Stock”); provided,
however, that the Pledged Stock shall not include more than 65% of the
issued and outstanding voting Equity Interests of any Foreign Subsidiary; (b)(i) the
debt securities listed opposite the name of such Grantor on Schedule II, (ii) any
debt securities in the future issued to such Grantor and (iii) the promissory
notes and any other instruments evidencing such debt securities (the “Pledged
Debt Securities”); (c) all other property that may be delivered to and
held by the Agent pursuant to the terms of this Section 3.01; (d) subject
to Section 3.06, all payments of principal or interest, dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of, in exchange for or upon the conversion of,
and all other Proceeds received in respect of, the securities referred to in
clauses (a) and (b) above; (e) subject to Section 3.06,
all rights and privileges of such Grantor with respect to the securities and
other property referred to in clauses (a), (b), (c) and (d) above;
and (f) all Proceeds of any of the foregoing (the items referred to in
clauses (a) through (f) above being collectively referred to as the “Pledged
Collateral”).

TO
HAVE AND TO HOLD the Pledged Collateral, together with all right, title,
interest, powers, privileges and preferences pertaining or incidental thereto,
unto the Agent, its successors and assigns, for the ratable benefit of the
Secured Parties, forever; subject, however, to the terms,
covenants and conditions hereinafter set forth.

SECTION 3.02. Delivery of the Pledged Collateral. (a)  Each
Grantor agrees promptly to deliver or cause to be delivered to the Agent any
and all Pledged Securities.

(b) Each Grantor will cause any Indebtedness for borrowed money
owed to such Grantor by any person in an amount that exceeds $500,000 that is
evidenced by a duly executed promissory note to be pledged and delivered to the
Agent, duly endorsed in a manner satisfactory to the Agent. Without limiting
the foregoing, all promissory notes in favor of any Grantor shall be delivered
to the Agent promptly after request of the Agent.

(c) Upon delivery to the Agent, (i) any Pledged Securities
shall be accompanied by stock powers duly executed in blank or other
instruments of transfer satisfactory to the Agent and by such other instruments
and documents as the Agent may reasonably request and (ii) all other
property comprising part of the Pledged Collateral shall be accompanied by
proper instruments of assignment duly executed by the applicable Grantor and
such other instruments or documents as the Agent may reasonably request. Each
delivery of Pledged Securities shall be accompanied by a schedule describing
the securities, which schedule shall be attached hereto as Schedule II and
made a part hereof; provided that failure to attach any such schedule
hereto shall not affect the validity of such pledge of such Pledged Securities.
Each schedule so delivered shall supplement any prior schedules so delivered.

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SECTION 3.03. Representations, Warranties and Covenants. The
Grantors jointly and severally represent, warrant and covenant to and with the
Agent, for the benefit of the Secured Parties, that:

(a) Schedule
II correctly sets forth the percentage of the issued and outstanding shares of
each class of the Equity Interests of the issuer thereof represented by such
Pledged Stock and includes all Equity Interests, debt securities and promissory
notes owned by such Grantor; provided, however, that no more than 65% of the
issued and outstanding voting Equity Interests of any Foreign Subsidiary is
required to be listed;

(b) except
for the security interests granted hereunder, each of the Grantors (i) is
and, subject to any transfers made in compliance with the Credit Agreement,
will continue to be the direct owner, beneficially and of record, of the
Pledged Securities indicated on Schedule II as owned by such Grantor, (ii) holds
the same free and clear of all Liens, (iii) will make no assignment,
pledge, hypothecation or transfer of, or create or permit to exist any security
interest in or other Lien on, the Pledged Collateral, other than Liens created
by this Agreement or as permitted by the Credit Agreement and transfers made in
compliance with the Credit Agreement, and (iv) subject to Section 3.06,
will cause any and all Pledged Collateral, whether for value paid by the
Grantor or otherwise, to be forthwith deposited with the Agent and pledged or
assigned hereunder;

(c) except
for restrictions and limitations imposed by the Loan Documents or securities
laws generally, the Pledged Collateral (other than Pledged Collateral
representing less than all of the Equity Interests of a person) is and will
continue to be freely transferable and assignable, and none of the Pledged
Collateral is or will be subject to any option, right of first refusal,
shareholders agreement, charter or by-law provisions or contractual restriction
of any nature that might prohibit, impair, delay or otherwise affect the pledge
of such Pledged Collateral hereunder, the sale or disposition thereof pursuant
hereto or the exercise by the Agent of rights and remedies hereunder;

(d) each
of the Grantors (i) has the power and authority to pledge the Pledged
Collateral pledged by it hereunder in the manner hereby done or contemplated
and (ii) will defend its title or interest thereto or therein against any
and all Liens (other than Liens created by this Agreement or as permitted by
the Credit Agreement), however arising, of all persons whomsoever;

(e) no
consent or approval of any Governmental Authority, any securities exchange or
any other person was or is necessary to the validity of the pledge of the
Pledged Collateral effected hereby (other than such as have been obtained and
are in full force and effect and except with respect to Pledged Collateral in
the form of Equity Interests in joint ventures);

(f) by
virtue of the execution and delivery by the Grantors of this Agreement, when
any Pledged Securities are delivered to the Agent in accordance

 

 10

 

 

with this
Agreement, the Agent will obtain a legal, valid and perfected first priority
lien upon and security interest in such Pledged Securities as security for the
payment and performance of the Secured Obligations; and

(g) the
pledge effected hereby is effective to vest in the Agent, for the benefit of
the Secured Parties, the rights of the Agent in the Pledged Collateral as set
forth herein.

SECTION 3.04. Certification of Limited Liability Company
Interests and Limited Partnership Interests. Each interest in any limited
liability company or limited partnership controlled by any Grantor and pledged
hereunder shall be represented by a certificate, shall be a “security” within
the meaning of Article 8 of the New York UCC and shall be governed by Article 8
of the New York UCC.

SECTION 3.05. Registration in Nominee Name; Denominations. The
Agent, on behalf of the Secured Parties, shall have the right (in its sole and
absolute discretion) to hold the Pledged Securities in its own name as pledgee,
the name of its nominee (as pledgee or as sub-agent) or the name of the
applicable Grantor, endorsed or assigned in blank or in favor of the Agent. Each
Grantor will promptly give to the Agent copies of any notices or other
communications received by it with respect to Pledged Securities registered in
the name of such Grantor. The Agent shall at all times have the right to
exchange the certificates representing Pledged Securities for certificates of
smaller or larger denominations for any purpose consistent with this Agreement.

SECTION 3.06. Voting Rights; Dividends and Interest, etc. (a)  Unless
and until an Event of Default shall have occurred and be continuing and the
Agent shall have given the Grantors at least two Business Days’ notice of its
intent to exercise its rights under this Agreement (which notice shall be
deemed to have been given immediately upon the occurrence of an Event of
Default with respect to Holdings or the Borrower under paragraph (f) or (g) of
Article VII of the Credit Agreement):

(i)    Each Grantor shall be entitled to exercise
any and all voting and/or other consensual rights and powers inuring to an
owner of Pledged Securities or any part thereof for any purpose not in
violation with the terms of this Agreement, the Credit Agreement and the other
Loan Documents.

(ii)   The Agent shall execute and deliver to each
Grantor, or cause to be executed and delivered to each Grantor, all such
proxies, powers of attorney and other instruments as a Grantor may reasonably
request for the purpose of enabling such Grantor to exercise the voting and/or
consensual rights and powers it is entitled to exercise pursuant to
subparagraph (i) above.

(iii)  Each Grantor shall be entitled to receive and
retain any and all dividends, interest, principal and other distributions paid
on or distributed in respect of the Pledged Securities to the extent and only
to the extent that

 11
 

 

 

such
dividends, interest, principal and other distributions are permitted by, and
otherwise paid or distributed in accordance with, the terms and conditions of
the Credit Agreement, the other Loan Documents and applicable laws; provided,
however, that any noncash dividends, interest, principal or other
distributions that would constitute Pledged Stock or Pledged Debt Securities,
whether resulting from a subdivision, combination or reclassification of the
outstanding Equity Interests of the issuer of any Pledged Securities or
received in exchange for Pledged Securities or any part thereof, or in
redemption thereof, or as a result of any merger, consolidation, acquisition or
other exchange of assets to which such issuer may be a party or otherwise,
shall be and become part of the Pledged Collateral, and, if received by any
Grantor, shall not be commingled by such Grantor with any of its other funds or
property but shall be held separate and apart therefrom, shall be held in trust
for the benefit of the Agent and shall be forthwith delivered to the Agent in
the same form as so received (with any necessary endorsement). This paragraph (iii) shall
not apply to dividends between or among the Borrower and the Subsidiary
Guarantors only of property subject to a perfected security interest under this
Agreement; provided that the Borrower notifies the Agent in writing,
specifically referring to this Section 3.06 at the time of such dividend
and takes any actions the Agent reasonably specifies to ensure the continuance
of its perfected security interest in such property under this Agreement.

(b) Upon the occurrence and during the continuance of an Event of
Default, after the Agent shall have notified (or shall be deemed to have
notified) the Grantors of the suspension of their rights under paragraph (a)(iii) of
this Section 3.06, then all rights of any Grantor to dividends, interest,
principal or other distributions that such Grantor is authorized to receive
pursuant to paragraph (a)(iii) of this Section 3.06 shall cease,
and all such rights shall thereupon become vested in the Agent, which shall
have the sole and exclusive right and authority to receive and retain such
dividends, interest, principal or other distributions. All dividends, interest,
principal or other distributions received by any Grantor contrary to the
provisions of this Section 3.06 shall be held in trust for the benefit of
the Agent, shall be segregated from other property or funds of such Grantor and
shall be forthwith delivered to the Agent upon demand in the same form as so
received (with any necessary endorsement). Any and all money and other property
paid over to or received by the Agent pursuant to the provisions of this
paragraph (b) shall be retained by the Agent in an account to be
established by the Agent upon receipt of such money or other property and shall
be applied in accordance with the provisions of Section 5.02. After all
Events of Default have been cured or waived and the applicable Grantor or
Grantors have delivered to the Agent certificates to that effect, the Agent
shall, promptly after all such Events of Default have been cured or waived,
repay to each Grantor (without interest) all dividends, interest, principal or
other distributions that such Grantor would otherwise be permitted to retain
pursuant to the terms of paragraph (a)(iii) of this Section 3.06 and
that remain in such account.

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(c) Upon the occurrence and during the continuance of an Event of
Default, after the Agent shall have notified (or shall be deemed to have
notified) the Grantors of the suspension of their rights under paragraph (a)(i) of
this Section 3.06, then all rights of any Grantor to exercise the voting
and consensual rights and powers it is entitled to exercise pursuant to
paragraph (a)(i) of this Section 3.06, and the obligations of
the Agent under paragraph (a)(ii) of this Section 3.06, shall
cease, and all such rights shall thereupon become vested in the Agent, which
shall have the sole and exclusive right and authority to exercise such voting
and consensual rights and powers; provided that, unless otherwise
directed by the Required Lenders, the Agent shall have the right from time to
time following and during the continuance of an Event of Default to permit the
Grantors to exercise such rights.

(d) Any notice given by the Agent to the Grantors exercising its
rights under paragraph (a) of this Section 3.06 (i) may be
given by telephone if promptly confirmed in writing, (ii) may be given to
one or more of the Grantors at the same or different times and (iii) may
suspend the rights of the Grantors under paragraph (a)(i) or paragraph (a)(iii) in
part without suspending all such rights (as specified by the Agent in its sole
and absolute discretion) and without waiving or otherwise affecting the Agent’s
rights to give additional notices from time to time suspending other rights so
long as an Event of Default has occurred and is continuing.

ARTICLE IV

Security Interests
in Personal Property

SECTION 4.01. Security Interest. (a)  As security
for the payment or performance, as the case may be, in full of the Secured
Obligations, each Grantor hereby assigns and pledges to the Agent, its
successors and assigns, for the ratable benefit of the Secured Parties, and
hereby grants to the Agent, its successors and assigns, for the ratable benefit
of the Secured Parties, a security interest (the “Security Interest”),
in all right, title or interest in or to any and all of the following assets
and properties now owned or at any time hereafter acquired by such Grantor or
in which such Grantor now has or at any time in the future may acquire any
right, title or interest (collectively, the “Article 9 Collateral”):

(i)    all
Accounts;

(ii)    all
Chattel Paper;

(iii)    all
Commercial Tort Claims;

(iv)    all
Documents;

(v)    all
Equipment;

(vi)    all
General Intangibles;

(vii)    all
Instruments;

 13
 

 

 

(viii)    all
Inventory;

(ix)    all
Investment Property;

(x)    all
Letter-of-Credit Rights;

(xi)    all
books and records pertaining to the Article 9 Collateral; and

(xii)    to
the extent not otherwise included, all Proceeds and products of any and all of
the foregoing and all collateral security and guarantees given by any person with
respect to any of the foregoing.

Notwithstanding
the foregoing, the Article 9 Collateral shall not include any of the
following assets now owned or hereafter acquired which would otherwise be
included in the Article 9 Collateral:

(i) any
vehicle covered by a certificate of title or ownership,

(ii) any
real property held by the Borrower or any Guarantor as a lessee under a lease,

(iii) assets
sold to a person which is not a Grantor in compliance with the Credit
Agreement,

(iv) assets
owned by a Guarantor after the release of the guarantee of such Guarantor
pursuant to Section 7.15,

(v) assets
subject to a Lien permitted by clauses (g), (h), (i) and (r) of the
definition of “Permitted Liens” set forth in the Credit Agreement and

(vi) assets
which contain a valid and enforceable prohibition on the creation of a security
interest therein so long as such prohibition remains in effect and is valid and
effective notwithstanding Sections 9-406, 9-407, 9-408 and 9-409
of the applicable Uniform Commercial Code; provided that, upon the reasonable
request of the Agent, the Borrower shall, and shall cause any applicable
Grantor to, use commercially reasonable efforts to have waived or eliminated
such provision.

(vii) any
property excluded from the definition of Pledged Collateral by virtue of the
proviso to Section 3.01 hereof,

(viii) 
any Letter of Credit Rights to the extent any Grantor is required by applicable
law to apply the proceeds of a drawing of such Letter of Credit for a specified
purpose and to a person that is not a Grantor,

(ix) any
asset of a Controlled Foreign Subsidiary (within the meaning of Treasury
Regulation § 1.956-2(c)(2) or any successor provision thereto) or a
subsidiary of a Controlled Foreign Subsidiary,

 14
 

 

 

(x)  any
application for a Trademark registration filed with the United States Patent
and Trademark Office pursuant to Section 1(b) of the Lanham Act (“Intent
to Use Application”) prior to the filing with and acceptance by the United
States Patent and Trademark Office of a Statement of Use (as described in Section 1(d) of
the Lanham Act)  or an Amendment to Allege Use (as described in Section 1(c) of
the Lanham Act), and

(xi) deposit
accounts.

(b) Each
Grantor hereby irrevocably authorizes the Agent at any time and from time to
time to file in any relevant jurisdiction any initial financing statements
(including fixture filings) with respect to the Article 9 Collateral or
any part thereof and amendments thereto that (i) indicate the Article 9
Collateral as all assets of such Grantor or words of similar effect, and (ii) contain
the information required by Article 9 of the Uniform Commercial Code of
each applicable jurisdiction for the filing of any financing statement or
amendment, including  (A) whether
such Grantor is an organization, the type of organization and any
organizational identification number issued to such Grantor and (B) in the
case of a financing statement filed as a fixture filing, a sufficient
description of the real property to which such Article 9 Collateral
relates. Each Grantor agrees to provide such information to the Agent promptly
upon request.

Each
Grantor also ratifies its authorization for the Agent to file in any relevant
jurisdiction any initial financing statements or amendments thereto if filed
prior to the date hereof.

The
Agent is further authorized to file with the United States Patent and Trademark
Office or United States Copyright Office (or any successor office or any
similar office in any other country) such documents as may be necessary or
advisable for the purpose of perfecting, confirming, continuing, enforcing or
protecting the Security Interest granted by each Grantor, without the signature
of any Grantor, and naming any Grantor or the Grantors as debtors and the Agent
as secured party.

(c) The Security Interest is granted as security only and shall
not subject the Agent or any other Secured Party to, or in any way alter or
modify, any obligation or liability of any Grantor with respect to or arising
out of the Article 9 Collateral.

SECTION 4.02. Representations and Warranties. The Grantors
jointly and severally represent and warrant to the Agent and the Secured
Parties that:

(a) Each
Grantor has good and valid rights in and title to the Article 9 Collateral
with respect to which it has purported to grant a Security Interest hereunder
and has full power and authority to grant to the Agent the Security Interest in
such Article 9 Collateral pursuant hereto and to execute, deliver and
perform its obligations in accordance with the terms of this Agreement, without
the consent or approval of any other person other than any consent or approval
that has been obtained.

 15
 

 

 

(b) The
Perfection Certificate has been duly prepared, completed and executed and the
information set forth therein (including (x) the exact legal name of each
Grantor and (y) the jurisdiction of organization or formation of each
Grantor) is materially correct and complete as of the Closing Date. Uniform
Commercial Code financing statements (including fixture filings, as applicable)
or other appropriate filings, recordings or registrations containing a
description of the Article 9 Collateral have been prepared by the Agent
based upon the information provided to the Agent in the Perfection Certificate
for filing in each governmental, municipal or other office specified in
Schedule 2 to the Perfection Certificate (or specified by notice from the
Borrower to the Agent after the Closing Date in the case of filings, recordings
or registrations required by Sections  5.11 of the Credit Agreement, which
are all the filings, recordings and registrations (other than filings required
to be made in the United States Patent and Trademark Office and the United
States Copyright Office in order to perfect the Security Interest in Article 9
Collateral consisting of United States Patents, Trademarks and Copyrights) that
are necessary as of the Closing Date to publish notice of and protect the
validity of and to establish a legal, valid and perfected security interest in
favor of the Agent (for the ratable benefit of the Secured Parties) in respect
of all Article 9 Collateral in which the Security Interest may be
perfected by filing, recording or registration in the United States (or any
political subdivision thereof) and its territories and possessions, and no
further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary in any such jurisdiction, except as provided under
applicable law with respect to the filing of continuation statements. Each
Grantor represents and warrants that a fully executed agreement in the form
hereof and containing a description of all Article 9 Collateral consisting
of Intellectual Property with respect to United States Patents and United
States registered Trademarks (and Trademarks for which United States registration
applications are pending) and United States registered Copyrights have been
delivered to the Agent for recording by the United States Patent and Trademark
Office and the United States Copyright Office pursuant to
35 U.S.C. §261, 15 U.S.C. §1060 or 17 U.S.C. §205 and
the regulations thereunder, as applicable, and otherwise as may be required
pursuant to the laws of any other necessary jurisdiction, to protect the
validity of and to establish a legal, valid and perfected security interest in
favor of the Agent (for the ratable benefit of the Secured Parties) in respect
of all Article 9 Collateral consisting of Patents, Trademarks and
Copyrights in which a security interest may be perfected by filing, recording
or registration in the United States (or any political subdivision thereof) and
its territories and possessions, and no further or subsequent filing, refiling,
recording, rerecording, registration or reregistration is necessary (other than
such actions as are necessary to perfect the Security Interest with respect to
any Article 9 Collateral consisting of Patents, Trademarks and Copyrights
(or registration or application for registration thereof) acquired or developed
after the date hereof).

(c) The
Security Interest constitutes (i) a legal and valid security interest in
all the Article 9 Collateral securing the payment and performance of the
Secured Obligations, (ii) subject to the filings described in Section 4.02(b) and

 16
 

 

 

except for
Commercial Tort Claims in an amount less than or equal to $500,000, a perfected
security interest in all Article 9 Collateral in which a security interest
may be perfected by filing, recording or registering a financing statement or
analogous document in the United States (or any political subdivision thereof)
and its territories and possessions pursuant to the Uniform Commercial Code or
other applicable law in such jurisdictions and (iii) a security interest
that shall be perfected in all Article 9 Collateral in which a security
interest may be perfected upon the receipt and recording of this Agreement with
the United States Copyright Office. The Security Interest is and shall be prior
to any other Lien on any of the Article 9 Collateral, other than Liens
expressly permitted pursuant to Section 6.06 of the Credit Agreement.

(d) The Article 9
Collateral is owned by the Grantors free and clear of any Lien, except for
Liens expressly permitted pursuant to Section 6.06 of the Credit Agreement.
None of the Grantors has filed or consented to the filing of (i) any
financing statement or analogous document under the Uniform Commercial Code or
any other applicable laws covering any Article 9 Collateral, (ii) any
assignment in which any Grantor assigns any Collateral or any security
agreement or similar instrument covering any Article 9 Collateral with the
United States Patent and Trademark Office or the United States Copyright Office
or (iii) any assignment in which any Grantor assigns any Article 9
Collateral or any security agreement or similar instrument covering any Article 9
Collateral with any foreign governmental, municipal or other office, which
financing statement or analogous document, assignment, security agreement or
similar instrument is still in effect, except, in each case, for Liens
expressly permitted pursuant to Section 6.06 of the Credit Agreement. On
the date hereof, none of the Grantors hold any Commercial Tort Claim in an
amount greater than $500,000 except as indicated on the Perfection Certificate.

SECTION 4.03. Covenants. (a)  Intentionally Omitted.

(b) Subject to the rights of such Grantor under the Loan
Documents, each Grantor shall, at its own expense, take any and all actions it
deems necessary in the prudent conduct of the business of such Grantor (to be
determined in Grantor’s reasonable discretion) to defend title to the Article 9
Collateral against all persons and to defend the Security Interest of the Agent
in the Article 9 Collateral and the priority thereof against any Lien not
expressly permitted pursuant to Section 6.06 of the Credit Agreement.

(c) Each Grantor agrees that it shall not change such Grantor’s
name, corporate structure (e.g., by merger, consolidation, change in corporate
form or otherwise), type of organization or jurisdiction of organization unless
it shall have (i) notified the Agent in writing at least twenty (20) days
prior to any such change or establishment, identifying such new proposed name,
corporate structure or jurisdiction of organization and providing such other
information in connection therewith as the Agent may reasonably request and (ii) taken
all actions necessary or advisable to maintain the

 17
 

 

 

continuous
validity, perfection and the same or better priority of the Agent’s Security
Interest in the Collateral intended to be granted and agreed to hereby.

(d) Each Grantor agrees, at its own expense, to execute,
acknowledge, deliver and cause to be duly filed all such further instruments
and documents and take all such actions as the Agent may from time to time
request to better assure, preserve, protect and perfect the Security Interest
and the rights and remedies created hereby, including the payment of any fees
and Taxes required in connection with the execution and delivery of this
Agreement, the granting of the Security Interest and the filing of any
financing statements (including fixture filings) or other documents in
connection herewith or therewith. If any amount payable to any Grantor under or
in connection with any of the Article 9 Collateral shall be or become
evidenced by any promissory note or other instrument in excess of $500,000,
such note or instrument shall be promptly pledged and delivered to the Agent,
duly endorsed in a manner satisfactory to the Agent.

Without
limiting the generality of the foregoing, each Grantor hereby authorizes the
Agent, with prompt notice thereof to the Grantors, to supplement this Agreement
by supplementing Schedule III or adding additional schedules hereto to
specifically identify any asset or item that may, in the Agent’s judgment,
constitute Copyrights, Licenses, Patents or Trademarks; provided that
any Grantor shall have the right, exercisable within 10 days after it has
been notified by the Agent of the specific identification of such Collateral,
to advise the Agent in writing of any material inaccuracy of the
representations and warranties made by such Grantor hereunder with respect to
such Collateral. Each Grantor agrees that it will use its best efforts to take
such action as shall be necessary in order that all representations and
warranties hereunder shall be true and correct in all material respects with
respect to such Collateral within 30 days after the date it has been
notified by the Agent of the specific identification of such Collateral.

(e) After the occurrence of an Event of Default and during the
continuance thereof, the Agent shall have the right to verify under reasonable
procedures the validity, amount, quality, quantity, value, condition and status
of, or any other matter relating to, the Article 9 Collateral, including,
in the case of Accounts or Article 9 Collateral in the possession of any
third person, by contacting Account Debtors or the third person possessing such
Article 9 Collateral for the purpose of making such a verification. The
Agent shall have the right to share any information it gains from such
inspection or verification with any Secured Party.

(f) At its option, the Agent may discharge past due Taxes,
assessments, charges, fees, Liens, security interests or other encumbrances at
any time levied or placed on the Article 9 Collateral and not expressly
permitted pursuant to Section 6.06 of the Credit Agreement, and may pay
for the maintenance and preservation of the Article 9 Collateral to the
extent any Grantor fails to do so as required by the Credit Agreement or this
Agreement, and each Grantor jointly and severally agrees to reimburse the Agent
on demand for any payment made or any expense incurred by the Agent pursuant to
the foregoing authorization; provided, however, that nothing in
this paragraph shall be interpreted as excusing any Grantor from the
performance of, or imposing any obligation on the Agent or any Secured Party to
cure or perform, any covenants or other promises of

 18
 

 

 

any Grantor
with respect to Taxes, assessments, charges, fees, Liens, security interests or
other encumbrances and maintenance as set forth herein or in the other Loan
Documents.

(g) If at any time any Grantor shall take a security interest in
any property of an Account Debtor or any other person to secure payment and
performance of an Account in excess of $500,000, such Grantor shall promptly
assign such security interest to the Agent. Such assignment need not be filed
of public record unless necessary to continue the perfected status of the
security interest against creditors of and transferees from the Account Debtor
or other person granting the security interest.

(h) As between each Grantor, the Agent and the Secured Parties,
each Grantor shall remain liable to observe and perform all the conditions and
obligations to be observed and performed by it under each contract, agreement
or instrument relating to the Article 9 Collateral, and each Grantor
jointly and severally agrees to indemnify and hold harmless the Agent and the
Secured Parties from and against any and all liability for such performance.

(i) None of the Grantors shall make or permit to be made an
assignment, pledge or hypothecation of the Article 9 Collateral or shall
grant any other Lien in respect of the Article 9 Collateral, except as
expressly permitted by Section 6.06 of the Credit Agreement. None of the
Grantors shall make or permit to be made any transfer of the Article 9
Collateral, except as expressly permitted by Sections 6.03 and 6.07 of the
Credit Agreement.

(j) None of the Grantors will, without the Agent’s prior written
consent, grant any extension of the time of payment of any Accounts included in
the Article 9 Collateral, compromise, compound or settle the same for less
than the full amount thereof, release, wholly or partly, any person liable for
the payment thereof or allow any credit or discount whatsoever thereon, other
than extensions, credits, discounts, compromises, compoundings or settlements
granted or made in good faith in the prudent conduct of the business of such
Grantor.

(k) The Grantors, at their own expense, shall maintain or cause to
be maintained insurance covering physical loss or damage to the Inventory and
Equipment in accordance with the requirements set forth in Section 5.10 of
the Credit Agreement. Each Grantor irrevocably makes, constitutes and appoints
the Agent (and all officers, employees or agents designated by the Agent) as
such Grantor’s true and lawful agent (and attorney-in-fact) for the
purpose, upon the occurrence and during the continuance of an Event of Default,
of making, settling and adjusting claims in respect of Article 9
Collateral under policies of insurance, endorsing the name of such Grantor on
any check, draft, instrument or other item of payment for the proceeds of such
policies of insurance and for making all determinations and decisions with
respect thereto. In the event that any Grantor at any time or times shall fail
to obtain or maintain any of the policies of insurance required hereby or under
the Credit Agreement or to pay any premium in whole or part relating thereto,
the Agent may, without waiving or releasing any obligation or liability of the
Grantors hereunder or any Event of Default, in its sole discretion, obtain and
maintain such policies of insurance and pay such premium and take any other
actions

 19
 

 

 

with respect
thereto as the Agent deems advisable. All sums disbursed by the Agent in
connection with this paragraph, including attorneys’ fees, court costs,
expenses and other charges relating thereto, shall be payable, upon demand, by
the Grantors to the Agent and shall be additional Secured Obligations secured
hereby.

(l) Intentionally Omitted.

SECTION 4.04. Other Actions. In order to further insure the
attachment, perfection and priority of, and the ability of the Agent to
enforce, the Agent’s security interest in the Article 9 Collateral, each
Grantor agrees, in each case at such Grantor’s own expense, to take the
following actions with respect to the following Article 9 Collateral:

(a) Instruments.
If any Grantor shall at any time hold or acquire any Instruments in excess
of $500,000, such Grantor shall forthwith endorse, assign and deliver the same
to the Agent, accompanied by such instruments of transfer or assignment duly
executed in blank as the Agent may from time to time specify.

(b) Intentionally
Omitted.

(c) Investment
Property. Except to the extent otherwise provided in Article III, if
any Grantor shall at any time hold or acquire any certificated securities, such
Grantor shall forthwith endorse, assign and deliver the same to the Agent,
accompanied by such instruments of transfer or assignment duly executed in
blank as the Agent may from time to time specify. If any securities now or
hereafter acquired by any Grantor are uncertificated and are issued to such
Grantor or its nominee directly by the issuer thereof, such Grantor shall
immediately notify the Agent thereof and, at the Agent’s request and option,
within ninety (90) days of the date of the Agent’s request, pursuant to an
agreement in form and substance satisfactory to the Agent, either (a) cause
the issuer to agree to comply with instructions from the Agent as to such
securities, without further consent of any Grantor or such nominee, or (b) arrange
for the Agent to become the registered owner of the securities. If any
securities, whether certificated or uncertificated, or other Investment
Property now or hereafter acquired by any Grantor are held by such Grantor or
its nominee through a Securities Intermediary or Commodity Intermediary, such
Grantor shall immediately notify the Agent thereof and, at the Agent’s request
and option, within ninety (90) days of the date of the Agent’s request,
pursuant to an agreement in form and substance satisfactory to the Agent,
either (a) cause such Securities Intermediary or Commodity Intermediary,
as the case may be, to agree to comply with Entitlement Orders or other
instructions from the Agent to such Securities Intermediary as to such
securities or other Investment Property, or (as the case may be) to apply any
value distributed on account of any commodity contract as directed by the Agent
to such Commodity Intermediary, in each case without further consent of any
Grantor or such nominee, or (b) in the case of Financial Assets (as
governed by Article 8 of the New York UCC) or other Investment Property
held through a Securities Intermediary, arrange for the Agent

 

 20

 

 

to become the
Entitlement Holder with respect to such Investment Property, with the Grantor
being permitted, only with the consent of the Agent, to exercise rights to
withdraw or otherwise deal with such Investment Property. The Agent agrees with
each of the Grantors that the Agent shall not give any such Entitlement Orders
or instructions or directions to any such issuer, Securities Intermediary or
Commodity Intermediary, and shall not withhold its consent to the exercise of
any withdrawal or dealing rights by any Grantor, unless an Event of Default has
occurred and is continuing, or, after giving effect to any such investment and
withdrawal rights would occur. The provisions of this paragraph shall not apply
to any Financial Assets credited to a Securities Account for which the Agent is
the Securities Intermediary.

(d) Electronic
Chattel Paper and Transferable Records. If any Grantor at any time holds or
acquires an interest in any Electronic Chattel Paper or any Atransferable record,@ as that term is defined in Section 201
of the Federal Electronic Signatures in Global and National Commerce Act, or in
Section 16 of the Uniform Electronic Transactions Act as in effect in any
relevant jurisdiction, such Grantor shall promptly notify the Agent thereof
and, at the request of the Agent, shall take such action as the Agent may
request to vest in the Agent control under New York UCC Section 9-105
of such Electronic Chattel Paper or control under Section 201 of the
Federal Electronic Signatures in Global and National Commerce Act or, as the
case may be, Section 16 of the Uniform Electronic Transactions Act, as so
in effect in such jurisdiction, of such transferable record. The Agent agrees
with such Grantor that the Agent will arrange, pursuant to procedures satisfactory
to the Agent and so long as such procedures will not result in the Agent’s loss
of control, for the Grantor to make alterations to the Electronic Chattel Paper
or transferable record permitted under UCC Section 9-105 or, as the
case may be, Section 201 of the Federal Electronic Signatures in Global
and National Commerce Act or Section 16 of the Uniform Electronic
Transactions Act for a party in control to allow without loss of control,
unless an Event of Default has occurred and is continuing or would occur after
taking into account any action by such Grantor with respect to such Electronic
Chattel Paper or transferable record.

(e) Letter-of-Credit
Rights. If any Grantor is at any time a beneficiary under a letter of
credit now or hereafter issued in favor of such Grantor, such Grantor shall
promptly notify the Agent thereof and, at the request and option of the Agent,
such Grantor shall, pursuant to an agreement in form and substance satisfactory
to the Agent, either (i) arrange for the issuer and any confirmer of such
letter of credit to consent to an assignment to the Agent of the proceeds of
any drawing under the letter of credit or (ii) arrange for the Agent to
become the transferee beneficiary of the letter of credit, with the Agent
agreeing, in each case, that the proceeds of any drawing under the letter of
credit are to be paid to the applicable Grantor unless an Event of Default has
occurred or is continuing.

(f) Commercial
Tort Claims. If any Grantor shall at any time hold or acquire a Commercial
Tort Claim, the Grantor shall promptly notify the Agent

 21
 

 

 

thereof in a
writing signed by such Grantor including a summary description of such claim
and grant to the Agent in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance satisfactory to the Agent.

SECTION 4.05. Covenants regarding Patent, Trademark and
Copyright Collateral. (a)  Each Grantor agrees that it will not,
and will not permit any of its licensees to, do any act, or omit do to any act,
whereby any Patent that is material to the conduct of the business of the
Borrower and its Subsidiaries, taken as a whole, may become invalidated or
dedicated to the public, and agrees that it shall continue to mark any products
covered by a Patent with the relevant patent number as necessary and sufficient
to establish and preserve its maximum rights under applicable patent laws.

(b) Each Grantor (either itself or through its licensees or its
sublicensees) will, for each Trademark material to the conduct of the business
of the Borrower and its Subsidiaries, taken as a whole, (i) maintain such
Trademark in full force free from any claim of abandonment or invalidity for
non-use, (ii) maintain the quality of products and services offered
under such Trademark, (iii) display such Trademark with notice of Federal
or foreign registration to the extent necessary and sufficient to establish and
preserve its maximum rights under applicable law and (iv) not knowingly
use or knowingly permit the use of such Trademark in violation of any third
party rights.

(c) Each Grantor (either itself or through its licensees or
sublicensees) will, for each work covered by a Copyright that is material to
the conduct of the business of the Borrower and its Subsidiaries, taken as a
whole, continue to publish, reproduce, display, adopt and distribute the work
with appropriate copyright notice as necessary and sufficient to establish and
preserve its maximum rights under applicable copyright laws.

(d) Each Grantor shall notify the Agent immediately if it knows or
has reason to know that any Patent, Trademark or Copyright that is material to
the conduct of the business of the Borrower and its Subsidiaries, taken as a
whole, may become abandoned, lost or dedicated to the public, or of any adverse
determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, United States Copyright Office or any court or similar office
of any country) regarding such Grantor’s ownership of any such Patent,
Trademark or Copyright, its right to register the same, or its right to keep
and maintain the same.

(e) In no event shall any Grantor, either itself or through any
agent, employee, licensee or designee, file an application for any Patent,
Trademark or Copyright (or for the registration of any Trademark or Copyright)
with the United States Patent and Trademark Office, United States Copyright
Office or any office or agency in any political subdivision of the United
States or in any other country or any political subdivision thereof, with
respect to any of the same which is material to the conduct of the business of
the Borrower and its Subsidiaries, taken as a whole, unless it promptly informs
the Agent, and, upon request of the Agent, executes and delivers any and all
agreements, instruments, documents and papers as the Agent may request to
evidence the

 22
 

 

 

Agent’s
security interest in such Patent, Trademark or Copyright, and each Grantor
hereby appoints the Agent as its attorney-in-fact to execute and
file such writings for the foregoing purposes, all acts of such attorney being
hereby ratified and confirmed; such power, being coupled with an interest, is
irrevocable.

(f) Each Grantor will take all necessary steps that it deems
appropriate under the circumstances and are consistent with the practice in any
proceeding before the United States Patent and Trademark Office, United States
Copyright Office or any office or agency in any political subdivision of the
United States or in any other country or any political subdivision thereof, to
maintain and pursue each application relating to any Patent, Trademark and/or
Copyright (and to obtain the relevant grant or registration) that is material
to the conduct of the business of the Borrower and its Subsidiaries, taken as a
whole, and to maintain each issued Patent and each registration of the
Trademarks and Copyrights that is material to the conduct of the business of
the Borrower and its Subsidiaries, taken as a whole, including timely filings
of applications for renewal, affidavits of use, affidavits of incontestability
and payment of maintenance fees, and, if consistent with good business
judgment, to initiate opposition, interference and cancellation proceedings
against third parties.

(g) In the event that any Grantor knows or has reason to believe
that any Article 9 Collateral consisting of a Patent, Trademark or
Copyright that is material to the conduct of the business of the Borrower and
its Subsidiaries, taken as a whole, has been or is about to be infringed,
misappropriated or diluted by a third party, such Grantor promptly shall notify
the Agent and shall, if consistent with good business judgment, promptly sue
for infringement, misappropriation or dilution and to recover any and all
damages for such infringement, misappropriation or dilution, and take such
other actions as are appropriate under the circumstances to protect such Article 9
Collateral. Such Grantor may discontinue or settle any such suit or other
action if the Grantor deems such discontinuance or settlement to be appropriate
in its reasonable business judgment.

(h) Upon the occurrence and during the continuance of an Event of
Default, each Grantor shall, at the request of the Agent, use its best efforts
to obtain all requisite consents or approvals by the licensor of each Copyright
License, Patent License or Trademark License to effect the assignment of all
such Grantor’s right, title and interest thereunder to the Agent or its
designee.

ARTICLE V

Remedies

SECTION 5.01. Remedies upon Default. Upon the occurrence
and during the continuance of an Event of Default, each Grantor agrees to
deliver each item of Collateral to the Agent on demand, and it is agreed that
the Agent shall have the right to take any of or all the following actions at
the same or different times:  (a) with
respect to any Article 9 Collateral consisting of Intellectual Property,
on demand, to cause the Security Interest to become an
assignment, transfer and conveyance of any of or all such Article 9
Collateral by the applicable Grantors to the Agent, or to license or
sublicense,

 23
 

 

 

whether
general, special or otherwise, and whether on an exclusive or nonexclusive
basis, any such Article 9 Collateral throughout the world on such terms
and conditions and in such manner as the Agent shall determine (other than in
violation of any then-existing licensing arrangements to the extent that
waivers cannot be obtained), and (b) with or without legal process and
with or without prior notice or demand for performance, to take possession of
the Article 9 Collateral and without liability for trespass to enter any
premises where the Article 9 Collateral may be located for the purpose of
taking possession of or removing the Article 9 Collateral and, generally,
to exercise any and all rights afforded to a secured party under the Uniform
Commercial Code or other applicable law. Without limiting the generality of the
foregoing, each Grantor agrees that the Agent shall have the right, subject to
the mandatory requirements of applicable law, to sell or otherwise dispose of
all or any part of the Collateral at a public or private sale or at any broker’s
board or on any securities exchange, for cash, upon credit or for future
delivery as the Agent shall deem appropriate. The Agent shall be authorized at
any such sale (if it deems it advisable to do so) to restrict the prospective
bidders or purchasers to persons who will represent and agree that they are
purchasing the Collateral for their own account for investment and not with a
view to the distribution or sale thereof, and upon consummation of any such
sale the Agent shall have the right to assign, transfer and deliver to the
purchaser or purchasers thereof the Collateral so sold. Each such purchaser at
any such sale shall hold the property sold absolutely, free from any claim or
right on the part of any Grantor, and the Grantors hereby waive (to the extent
permitted by law) all rights of redemption, stay and appraisal which such
Grantor now has or may at any time in the future have under any rule of
law or statute now existing or hereafter enacted.

The
Agent shall give the applicable Grantors 10 days’ written notice (which
each Grantor agrees is reasonable notice within the meaning of Section 9-611
of the New York UCC or its equivalent in other jurisdictions) of the Agent’s
intention to make any sale of Collateral. Such notice, in the case of a public
sale, shall state the time and place for such sale and, in the case of a sale
at a broker’s board or on a securities exchange, shall state the board or
exchange at which such sale is to be made and the day on which the Collateral,
or portion thereof, will first be offered for sale at such board or exchange. Any
such public sale shall be held at such time or times within ordinary business
hours and at such place or places as the Agent may fix and state in the notice
(if any) of such sale. At any such sale, the Collateral, or portion thereof, to
be sold may be sold in one lot as an entirety or in separate parcels, as the
Agent may (in its sole and absolute discretion) determine. The Agent shall not
be obligated to make any sale of any Collateral if it shall determine not to do
so, regardless of the fact that notice of sale of such Collateral shall have
been given. The Agent may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by
announcement at the time and place fixed for sale, and such sale may, without
further notice, be made at the time and place to which the same was so
adjourned. In case any sale of all or any part of the Collateral is made on
credit or for future delivery, the Collateral so sold may be retained by the
Agent until the sale price is paid by the purchaser or purchasers thereof, but
the Agent shall not incur any liability in case any such purchaser or
purchasers shall fail to take up and pay for the Collateral so sold and, in
case of any such failure, such Collateral may be sold again upon like notice. At
any public (or, to the extent permitted by law, private) sale made pursuant to
this Section, any 

 24
 

 

 

Secured
Party may bid for or purchase, free (to the extent permitted by law) from any
right of redemption, stay, valuation or appraisal on the part of any Grantor
(all said rights being also hereby waived and released to the extent permitted
by law), the Collateral or any part thereof offered for sale and may make
payment on account thereof by using any claim then due and payable to such Secured
Party from any Grantor as a credit against the purchase price, and such Secured
Party may, upon compliance with the terms of sale, hold, retain and dispose of
such property without further accountability to any Grantor therefor. For
purposes hereof, a written agreement to purchase the Collateral or any portion
thereof shall be treated as a sale thereof; the Agent shall be free to carry
out such sale pursuant to such agreement and no Grantor shall be entitled to
the return of the Collateral or any portion thereof subject thereto,
notwithstanding the fact that after the Agent shall have entered into such an
agreement all Events of Default shall have been remedied and the Secured
Obligations paid in full. As an alternative to exercising the power of sale herein
conferred upon it, the Agent may proceed by a suit or suits at law or in equity
to foreclose this Agreement and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent
jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any
sale pursuant to the provisions of this Section 5.01 shall be deemed to
conform to the commercially reasonable standards as provided in Section 9-610(b) of
the New York UCC or its equivalent in other jurisdictions.

SECTION 5.02. Application of Proceeds. The Agent shall
apply the proceeds of any collection, sale, foreclosure or other realization
upon any Collateral, including any Collateral consisting of cash, as follows:

FIRST, to the
payment of all costs and expenses incurred by the Agent (in its capacity as
such hereunder or under any other Loan Document) in connection with such
collection, sale, foreclosure or realization or otherwise in connection with
this Agreement, any other Loan Document or any of the Secured Obligations,
including all court costs and the fees and expenses of its agents and legal
counsel, the repayment of all advances made by the Agent hereunder or under any
other Loan Document on behalf of any Grantor and any other costs or expenses
incurred in connection with the exercise of any right or remedy hereunder or
under any other Loan Document;

SECOND, to the
payment in full of the Secured Obligations (the amounts so applied to be
distributed among the Secured Parties pro rata in accordance with the amounts
of the Secured Obligations owed to them on the date of any such distribution);
and

THIRD, to the
Grantors, their successors or assigns, or as a court of competent jurisdiction
may otherwise direct.

The Agent shall have absolute discretion (as between
the Secured Parties and the Grantors) as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement. Upon any sale
of Collateral by the Agent (including pursuant to a power of sale granted by
statute or under a judicial proceeding), the receipt

 25
 

 

 

of the Agent or of the officer making the sale shall
be a sufficient discharge to the purchaser or purchasers of the Collateral so
sold and such purchaser or purchasers shall not be obligated to see to the application
of any part of the purchase money paid over to the Agent or such officer or be
answerable in any way for the misapplication thereof.

SECTION 5.03. Grant of License to Use Intellectual Property. For
the purpose of enabling the Agent to exercise rights and remedies under this Article at
such time as the Agent shall be lawfully entitled to exercise such rights and
remedies, each Grantor hereby grants to the Agent an irrevocable, nonexclusive
license (exercisable without payment of royalty or other compensation to the
Grantors) to use, license or sublicense any of the Article 9 Collateral
consisting of Intellectual Property now owned or hereafter acquired by such
Grantor, and wherever the same may be located, and including in such license
access to all media in which any of the licensed items may be recorded or
stored and to all computer software and programs used for the compilation or
printout thereof. The use of such license by the Agent shall be exercised, at
the option of the Agent, only upon the occurrence and during the continuation
of an Event of Default; provided, however, that any license,
sublicense or other transaction entered into by the Agent in accordance
herewith shall be binding upon the Grantors notwithstanding any subsequent cure
of an Event of Default.

SECTION 5.04. Securities Act, etc. In view of the position
of the Grantors in relation to the Pledged Collateral, or because of other
current or future circumstances, a question may arise under the Securities Act
of 1933, as now or hereafter in effect, or any similar statute hereafter
enacted analogous in purpose or effect (such Act and any such similar statute
as from time to time in effect being called the “Federal Securities Laws”)
with respect to any disposition of the Pledged Collateral permitted hereunder. Each
Grantor understands that compliance with the Federal Securities Laws might very
strictly limit the course of conduct of the Agent if the Agent were to attempt
to dispose of all or any part of the Pledged Collateral, and might also limit
the extent to which or the manner in which any subsequent transferee of any
Pledged Collateral could dispose of the same. Similarly, there may be other
legal restrictions or limitations affecting the Agent in any attempt to dispose
of all or part of the Pledged Collateral under applicable “blue sky” or other
state securities laws or similar laws analogous in purpose or effect. Each
Grantor recognizes that in light of such restrictions and limitations the Agent
may, with respect to any sale of the Pledged Collateral, limit the purchasers
to those who will agree, among other things, to acquire such Pledged Collateral
for their own account, for investment, and not with a view to the distribution
or resale thereof. Each Grantor acknowledges and agrees that in light of such
restrictions and limitations, the Agent, in its sole and absolute discretion (a) may
proceed to make such a sale whether or not a registration statement for the
purpose of registering such Pledged Collateral or part thereof shall have been
filed under the Federal Securities Laws and (b) may approach and negotiate
with such number of purchasers as the Agent determines to be reasonable to
effect such sale. Each Grantor acknowledges and agrees that any such sale might
result in prices and other terms less favorable to the seller than if such sale
were a public sale without such restrictions. In the event of any such sale,
the Agent shall incur no responsibility or liability for selling all or any
part of the Pledged Collateral at a price that the Agent, in its sole and
absolute discretion, may in good faith deem reasonable under

 26
 

 

 

the
circumstances, notwithstanding the possibility that a substantially higher
price might have been realized if the sale were deferred until after
registration as aforesaid or if more than a single purchaser were approached. The
provisions of this Section 5.04 will apply notwithstanding the existence
of a public or private market upon which the quotations or sales prices may
exceed substantially the price at which the Agent sells.

ARTICLE VI

Indemnity,
Subrogation and Subordination

SECTION 6.01. Indemnity and Subrogation. In addition to all
such rights of indemnity and subrogation as the Guarantors may have under
applicable law (but subject to Section 6.03), the Borrower agrees that (a) in
the event a payment shall be made by any Guarantor under this Agreement, the
Borrower shall indemnify such Guarantor for the full amount of such payment and
such Guarantor shall be subrogated to the rights of the person to whom such
payment shall have been made to the extent of such payment and (b) in the
event any assets of any Guarantor shall be sold pursuant to this Agreement or
any other Collateral Document to satisfy in whole or in part a claim of any
Secured Party, the Borrower shall indemnify such Guarantor in an amount equal
to the greater of the book value or the fair market value of the assets so
sold.

SECTION 6.02. Contribution and Subrogation. Each Guarantor
(a “Contributing Guarantor”) agrees (subject to Section 6.03) that,
in the event a payment shall be made by any other Guarantor hereunder in
respect of any Secured Obligation or assets of any other Guarantor shall be
sold pursuant to any Collateral Document to satisfy any Secured Obligation owed
to any Secured Party and such other Guarantor (the “Claiming Guarantor”)
shall not have been fully indemnified by the Borrower as provided in Section 6.01,
the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount
equal to the amount of such payment or the greater of the book value or the
fair market value of such assets, as the case may be, in each case multiplied
by a fraction of which the numerator shall be the net worth of the Contributing
Guarantor on the date hereof and the denominator shall be the aggregate net
worth of all the Guarantors on the date hereof (or, in the case of any
Guarantor becoming a party hereto pursuant to Section 7.16, the date of
the Supplement hereto executed and delivered by such Guarantor). Any
Contributing Guarantor making any payment to a Claiming Guarantor pursuant to
this Section 6.02 shall be subrogated to the rights of such Claiming
Guarantor under Section 6.01 to the extent of such payment.

SECTION 6.03. Subordination. (a)  Notwithstanding any
provision of this Agreement to the contrary, all rights of the Guarantors under
Sections 6.01 and 6.02 and all other rights of indemnity, contribution or
subrogation under applicable law or otherwise shall be fully subordinated to
the indefeasible payment in full in cash of the Secured Obligations. No failure
on the part of the Borrower or any Guarantor to make the payments required by
Sections 6.01 and 6.02 (or any other payments required under applicable
law or otherwise) shall in any respect limit the obligations and liabilities of
any Guarantor with respect to its obligations hereunder, and each Guarantor
shall remain liable for the full amount of the obligations of such Guarantor
hereunder.

 27
 

 

 

(b) Each of the Borrower and the Subsidiary Guarantors hereby
agrees that all Indebtedness and other monetary obligations owed by it to the
Borrower or any Subsidiary shall be fully subordinated to the indefeasible
payment in full in cash of the Secured Obligations.

ARTICLE VII

Miscellaneous

SECTION 7.01. Notices. All communications and notices
hereunder shall (except as otherwise expressly permitted herein) be in writing
and given as provided in Section 9.01 of the Credit Agreement. All
communications and notices hereunder to any Subsidiary Guarantor shall be given
to it in care of the Borrower as provided in Section 9.01 of the Credit
Agreement.

SECTION 7.02. Security Interest Absolute. All rights of the
Agent hereunder, the Security Interest, the grant of a security interest in the
Pledged Collateral and all obligations of each Grantor hereunder shall be
absolute and unconditional irrespective of (a) any lack of validity or
enforceability of the Credit Agreement, any other Loan Document, any agreement
with respect to any of the Secured Obligations or any other agreement or
instrument relating to any of the foregoing, (b) any change in the time,
manner or place of payment of, or in any other term of, all or any of the
Secured Obligations, or any other amendment or waiver of or any consent to any
departure from the Credit Agreement, any other Loan Document or any other
agreement or instrument, (c) any exchange, release or non-perfection of
any Lien on other collateral, or any release or amendment or waiver of or
consent under or departure from any guarantee, securing or guaranteeing all or
any of the Secured Obligations, or (d) any other circumstance that might
otherwise constitute a defense available to, or a discharge of, any Grantor in
respect of the Secured Obligations or this Agreement.

SECTION 7.03. Survival of Agreement. All covenants, agreements,
representations and warranties made by the Loan Parties in the Loan Documents
and in the certificates or other instruments prepared or delivered in
connection with or pursuant to this Agreement or any other Loan Document shall
be considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans and issuance of any Letters of Credit, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that the
Agent, the Issuing Bank or any Lender may have had notice or knowledge of any
Default or incorrect representation or warranty at the time any credit is
extended under the Credit Agreement, and shall continue in full force and
effect as long as the principal of or any accrued interest on any Loan or any
fee or any other amount payable under any Loan Document is outstanding and
unpaid or the aggregate L/C Exposure does not equal zero and so long as the
Commitments have not expired or terminated.

SECTION 7.04. Binding Effect; Several Agreement. This
Agreement shall become effective as to any Loan Party when a counterpart hereof
executed on behalf of such Loan Party shall have been delivered to the Agent
and a counterpart hereof shall

 28
 

 

 

have been
executed on behalf of the Agent, and thereafter shall be binding upon such Loan
Party and the Agent and their respective permitted successors and assigns, and
shall inure to the benefit of such Loan Party, the Agent and the other Secured
Parties and their respective successors and assigns, except that no Loan Party
shall have the right to assign or transfer its rights or obligations hereunder
or any interest herein or in the Collateral (and any such assignment or
transfer shall be void) except as expressly contemplated by this Agreement or
the Credit Agreement. This Agreement shall be construed as a separate agreement
with respect to each Loan Party and may be amended, modified, supplemented,
waived or released with respect to any Loan Party without the approval of any
other Loan Party and without affecting the obligations of any other Loan Party
hereunder.

SECTION 7.05. Successors and Assigns. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the permitted successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of any Grantor or the Agent
that are contained in this Agreement shall bind and inure to the benefit of
their respective successors and assigns.

SECTION 7.06. Agent’s Fees and Expenses; Indemnification. (a)  The
parties hereto agree that the Agent shall be entitled to reimbursement of its
expenses incurred hereunder as provided in Section 9.03 of the Credit
Agreement.

(b) Without limitation of its indemnification obligations under
the other Loan Documents, each Grantor jointly and severally agrees to
indemnify the Agent and the other Indemnitees against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related out
of pocket expenses, including the fees, charges and disbursements of any
counsel for any Indemnitee, incurred by or asserted against any Indemnitee
arising out of, in any way connected with, or as a result of, the execution,
delivery or performance of this Agreement or any agreement or instrument
contemplated hereby or any claim, litigation, investigation or proceeding
relating to any of the foregoing agreement or instrument contemplated hereby or
thereby, or to the Collateral, whether or not any Indemnitee is a party
thereto; provided, however,
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee.

(c) Any such amounts payable as provided hereunder shall be
additional Secured Obligations secured hereby and by the other Collateral
Documents. The provisions of this Section 7.06 shall remain operative and
in full force and effect regardless of the termination of this Agreement or any
other Loan Document, the consummation of the transactions contemplated hereby,
the repayment of any of the Secured Obligations, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Agent or any other
Secured Party. All amounts due under this Section 7.06 shall be payable on
written demand therefor and shall bear interest at the rate specified in Section 2.11
of the Credit Agreement.

 29
 

 

 

SECTION 7.07. Agent Appointed Attorney-in-Fact. Each
Grantor hereby appoints the Agent as the attorney-in-fact of such Grantor for
the purpose of carrying out the provisions of this Agreement and taking any
action and executing any instrument that the Agent may deem necessary or
advisable to accomplish the purposes hereof, which appointment is irrevocable
and coupled with an interest. Without limiting the generality of the foregoing,
the Agent shall have the right, upon the occurrence and during the continuance
of an Event of Default, with full power of substitution either in the Agent’s
name or in the name of such Grantor (a) to receive, endorse, assign and/or
deliver any and all notes, acceptances, checks, drafts, money orders or other
evidences of payment relating to the Collateral or any part thereof; (b) to
demand, collect, receive payment of, give receipt for and give discharges and
releases of all or any of the Collateral; (c) to sign the name of any
Grantor on any invoice or bill of lading relating to any of the Collateral; (d) to
send verifications of Accounts Receivable to any Account Debtor; (e) to
commence and prosecute any and all suits, actions or proceedings at law or in
equity in any court of competent jurisdiction to collect or otherwise realize
on all or any of the Collateral or to enforce any rights in respect of any
Collateral; (f) to settle, compromise, compound, adjust or defend any
actions, suits or proceedings relating to all or any of the Collateral; (g) to
notify, or to require any Grantor to notify, Account Debtors to make payment
directly to the Agent; and (h) to use, sell, assign, transfer, pledge, make
any agreement with respect to or otherwise deal with all or any of the
Collateral, and to do all other acts and things necessary to carry out the
purposes of this Agreement, as fully and completely as though the Agent were
the absolute owner of the Collateral for all purposes; provided, however,
that nothing herein contained shall be construed as requiring or obligating the
Agent to make any commitment or to make any inquiry as to the nature or
sufficiency of any payment received by the Agent, or to present or file any
claim or notice, or to take any action with respect to the Collateral or any
part thereof or the moneys due or to become due in respect thereof or any
property covered thereby. The Agent and the other Secured Parties shall be
accountable only for amounts actually received as a result of the exercise of
the powers granted to them herein, and neither they nor their officers,
directors, employees or agents shall be responsible to any Grantor for any act
or failure to act hereunder, except for their own gross negligence or willful
misconduct.

SECTION 7.08. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

SECTION 7.09. Waivers; Amendment. (a)  No failure
or delay by the Agent, the Issuing Bank or any Lender in exercising any right
or power hereunder or under any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power,
or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Agent, the Issuing Bank and the
Lenders hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver
of any provision of any Loan Document or consent to any departure by any Loan
Party therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or
consent shall be

 

 30

 

 

effective only
in the specific instance and for the purpose for which given. Without limiting
the generality of the foregoing, the making of a Loan or issuance of a Letter
of Credit shall not be construed as a waiver of any Default, regardless of
whether the Agent, any Lender or the Issuing Bank may have had notice or
knowledge of such Default at the time. No notice or demand on any Loan Party in
any case shall entitle any Loan Party to any other or further notice or demand
in similar or other circumstances.

(b) Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Agent and the Loan Party or Loan Parties with respect to
which such waiver, amendment or modification is to apply, subject to any
consent required in accordance with Section 9.02 of the Credit Agreement.

SECTION 7.10. WAIVER OF JURY
TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.10.

SECTION 7.11. Severability. In the event any one or more of
the provisions contained in this Agreement or in any other Loan Document should
be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and
therein shall not in any way be affected or impaired thereby (it being
understood that the invalidity of a particular provision in a particular
jurisdiction shall not in and of itself affect the validity of such provision
in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

SECTION 7.12. Counterparts. This Agreement may be executed
in counterparts (and by different parties hereto on different counterparts),
each of which shall constitute an original but all of which when taken together
shall constitute a single contract, and shall become effective as provided in Section 7.04.
Delivery of an executed signature page to this Agreement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart
of this Agreement.

 31
 

 

 

 

SECTION 7.13. Headings. Article and Section headings
and the Table of Contents used herein are for convenience of reference only,
are not part of this Agreement and are not to affect the construction of, or to
be taken into consideration in interpreting, this Agreement.

SECTION 7.14. Jurisdiction; Consent to Service of Process. (a) 
Each of the Loan Parties hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or Federal court of the United States of America, sitting in New York
City, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement or any other Loan Document, or for
recognition or enforcement of any judgment, and each of the Loan Parties hereby
irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State
or, to the extent permitted by law, in such Federal court. Each of the Loan
Parties agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement or any other
Loan Document shall affect any right that the Agent, the Issuing Bank or any
Lender may otherwise have to bring any action or proceeding relating to this
Agreement or any other Loan Document against any Loan Party or its properties
in the courts of any jurisdiction.

(b) Each of the Loan Parties hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement or
any other Loan Document in any court referred to in paragraph (a) of this
Section. Each of the Loan Parties hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

(c) Each of the Loan Parties hereby irrevocably consents to
service of process in the manner provided for notices in Section 7.01. Nothing
in this Agreement or any other Loan Document will affect the right of the Agent
to serve process in any other manner permitted by law.

SECTION 7.15. Termination or Release. (a)  This
Agreement, the Guarantees, the Security Interest and all other security
interests granted hereby shall terminate when all the Obligations (other than
wholly contingent indemnification obligations) then due and owing have been
indefeasibly paid in full and the Lenders have no further commitment to lend
under the Credit Agreement, the aggregate L/C Exposure has been reduced to zero
and the Issuing Bank has no further obligations to issue Letters of Credit
under the Credit Agreement.

(b) A Subsidiary Guarantor shall automatically be released from
its obligations hereunder and the Security Interest in the Collateral of such
Subsidiary Guarantor shall be automatically released upon the consummation of
any transaction permitted by the Credit Agreement as a result of which such
Subsidiary Guarantor ceases to be a Subsidiary of the Borrower.

 32
 

 

 

(c) Upon any sale or other transfer by any Grantor of any
Collateral that is permitted under the Credit Agreement to any person that is
not the Borrower or a Guarantor, or, upon the effectiveness of any written
consent to the release of the security interest granted hereby in any
Collateral pursuant to Section 9.02 of the Credit Agreement, the security
interest in such Collateral shall be automatically released and the Agent will
confirm such release in writing promptly after written request therefor.

(d) In connection with any termination or release pursuant to
paragraph (a), (b) or (c) above, the Agent shall execute and
deliver to any Grantor, at such Grantor’s expense, all documents that such
Grantor shall reasonably request to evidence such termination or release. Any
execution and delivery of documents pursuant to this Section 7.15 shall be
without recourse to or warranty by the Agent. Without limiting the provisions
of Section 7.06, the Borrower shall reimburse the Agent upon demand for
all costs and out of pocket expenses, including the fees, charges and
disbursements of counsel, incurred by it in connection with any action
contemplated by this Section 7.15.

SECTION 7.16. Additional Grantors. Pursuant to Section 5.11
of the Credit Agreement, each Domestic Subsidiary of a Loan Party that was not
in existence or not a Subsidiary on the date of the Credit Agreement is
required to enter in this Agreement as a Subsidiary Guarantor upon becoming
such a Subsidiary. Upon execution and delivery by the Agent and a Domestic
Subsidiary of a supplement in the form of Exhibit A hereto, such Domestic
Subsidiary shall become a Subsidiary Guarantor hereunder with the same force
and effect as if originally named as a Subsidiary Guarantor herein. The
execution and delivery of any such instrument shall not require the consent of
any other Loan Party hereunder. The rights and obligations of each Subsidiary
Guarantor hereunder shall remain in full force and effect notwithstanding the
addition of any new Loan Party as a party to this Agreement.

SECTION 7.17. Right of Setoff. If an Event of Default shall
have occurred and is continuing, each Lender and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
obligations at any time owing by such Lender or Affiliate to or for the credit
or the account of any Grantor against any and all of the obligations of such
Grantor now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under
this Agreement and although such obligations may be unmatured. The rights of
each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

 33
 

 

 

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
day and year first above written.

	
   

  	
  TRANSDIGM INC.

  
	
   

  	
  TRANSDIGM GROUP
  INCORPORATED

  
	
   

  	
  ADAMS RITE
  AEROSPACE, INC.

  
	
   

  	
  AVIONIC
  INSTRUMENTS INC.

  
	
   

  	
  CHAMPION
  AEROSPACE INC.

  
	
   

  	
  CHRISTIE
  ELECTRIC CORP.

  
	
   

  	
  DAC REALTY CORP.

  
	
   

  	
  MARATHONNORCO
  AEROSPACE, INC.

  
	
   

  	
  SKURKA AEROSPACE
  INC.

  
	
   

  	
  ZMP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ W. Nicholas
  Howley

  
	
   

  	
   

  	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
   

  	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SWEENEY
  ENGINEERING CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ Gregory
  Rufus

  
	
   

  	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

 

 

Signature Page to Guarantee and
Collateral Agreement

 

 34
 

 

 

 

	
  

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE,
  as Agent,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ CASSANDRA
  DROOGAN

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Cassandra
  Droogan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/ SHAHEEN
  MALIK

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Shaheen Malik

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Associate

  

 

 

 

 

 

 

 

 

 35
 

 

 

Schedule
I to the Guarantee and Collateral Agreement

SUBSIDIARY GUARANTORS

	
  Name of Subsidiary

  	
   

  	
   

  	
   

  	
  Jurisdiction of Organization

  	
   

  	
  Form of Organization

  
	
  Adams Rite
  Aerospace, Inc.

  	
   

  	
  California

  	
   

  	
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Avionic
  Instruments Inc.

  	
   

  	
  California

  	
   

  	
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sweeney
  Engineering Corp.

  	
   

  	
  California

  	
   

  	
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ZMP, Inc.

  	
   

  	
  California

  	
   

  	
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Champion
  Aerospace Inc.

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Christie
  Electric Corp.

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MarathonNorco
  Aerospace, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Skurka Aerospace
  Inc.

  	
   

  	
  Delaware

  	
   

  	
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DAC Realty Corp.

  	
   

  	
  New Jersey

  	
   

  	
  Corporation

  

 

 36
 

 

 

Schedule
II to the Guarantee and Collateral Agreement

 

CAPITAL STOCK

	
   

  	
  Issuer

  	
   

  	
   

  	
  Number of

  Certificate

  	
   

  	
  Registered Owner

  	
   

  	
  Number and

  Class of

  Equity Interest

  	
   

  	
  Percentage

  Of Equity Interests

  
	
  Adams Rite
  Aerospace, Inc.

  	
   

  	
  1

  	
   

  	
  ZMP, Inc.

  	
   

  	
  50,000 shares of Common
  Stock

  	
   

  	
  100%

  
	
  Avionic
  Instruments Inc.

  	
   

  	
  71

  	
   

  	
  TransDigm Inc.

  	
   

  	
  17,696,598.9475 shares
  of Common Stock

  	
   

  	
  100%

  
	
  Champion
  Aerospace Inc.

  	
   

  	
  1

  	
   

  	
  TransDigm Inc.

  	
   

  	
  1,000 shares of Common
  Stock

  	
   

  	
  100%

  
	
  Christie
  Electric Corp.

  	
   

  	
  3

  	
   

  	
  Marathon Power
  Technologies Company

  	
   

  	
  22,928 shares of Common
  Stock

  	
   

  	
  100%

  
	
  DAC Realty Corp.

  	
   

  	
  8

  	
   

  	
  TransDigm Inc.

  	
   

  	
  100 shares of Common
  Stock

  	
   

  	
  100%

  
	
  Marathon Power
  Technologies Company

  	
   

  	
  24

  	
   

  	
  TransDigm Inc.

  	
   

  	
  32,925 shares of Common
  Stock

  	
   

  	
  100%

  
	
  Marathon Power
  Technologies Limited

  	
   

  	
  3

  	
   

  	
  Marathon Power
  Technologies Company

  	
   

  	
  65,000 Ordinary Shares,
  par value £1.00 per share

  	
   

  	
  65%

  
	
  Skurka Aerospace
  Inc.

  	
   

  	
  1

  	
   

  	
  TransDigm Inc.

  	
   

  	
  100 shares of Common
  Stock

  	
   

  	
  100%

  
	
  Sweeney
  Engineering Corp.

  	
   

  	
  16

  	
   

  	
  TransDigm Inc.

  	
   

  	
  702,700 shares of
  Common Stock

  	
   

  	
  100%

  
	
  TransDigm Inc.

  	
   

  	
  1

  	
   

  	
  TransDigm Holding
  Company

  	
   

  	
  100 shares of Common
  Stock

  	
   

  	
  100%

  
	
  ZMP, Inc.

  	
   

  	
  1

  	
   

  	
  TransDigm Inc.

  	
   

  	
  1,000 shares of Common Stock

  	
   

  	
  100%

  

DEBT SECURITIES

	
   

  	
  Issuer

  	
   

  	
   

  	
  Principal

  Amount

  	
   

  	
  Date of Note

  	
   

  	
  Maturity Date

  
	
  Champion Aerospace Inc.
  (in

  favor of TransDigm Inc.)

  	
   

  	
  $160,000,000

  	
   

  	
  May 31, 2001

  	
   

  	
  May 31, 2007

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TransDigm Holding Company  (in

  favor of TransDigm Inc. as

  successor by merger to TD

  Finance Corporation)

  	
   

  	
  $749,925,329.03

  	
   

  	
  July 22, 2003

  	
   

  	
  N/A; Demand Promissory Note

  

 

 

 37

 

 

Schedule III to the
Guarantee and Collateral Agreement

TRANSDIGM GROUP INCORPORATED

U.S. COPYRIGHTS OWNED BY TRANSDIGM GROUP INCORPORATED

U.S. Copyright
Registrations

None.

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 1
 

 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF TRANSDIGM GROUP INCORPORATED

AS LICENSOR ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

 2
 

 

 

C. Trademarks

U.S.
Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 

 3

 

PART 2

LICENSEES/SUBLICENSES OF TRANSDIGM GROUP INCORPORATED

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

C. Trademarks

 4
 

 

 

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 5
 

 

 

PATENTS OWNED BY TRANSDIGM GROUP INCORPORATED

U.S. Patent Registrations

None.

U.S. Patent Applications

None.

Non-U.S. Patent Registrations

None.

Non-U.S. Patent
Applications

None.

 6
 

 

 

TRADEMARK/TRADE NAMES OWNED BY TRANSDIGM GROUP
INCORPORATED

U.S. Trademark Registrations

None.

U.S. Trademark Applications

None.

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

None.

Non-U.S. Trademark Applications

None.

Trade Names

None.

 7
 

 

 

U.S. COPYRIGHTS OWNED BY DAC REALTY CORP.

U.S. Copyright
Registrations

None.

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 8
 

 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF DAC REALTY CORP.

AS LICENSOR ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

 9
 

 

 

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 10
 

 

 

PART 2

LICENSEES/SUBLICENSES OF DAC REALTY CORP.

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

C. Trademarks

 11
 

 

 

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 12
 

 

 

PATENTS OWNED BY DAC REALTY CORP.

U.S. Patent Registrations

None.

U.S. Patent Applications

None.

Non-U.S. Patent Registrations

None.

Non-U.S. Patent Applications

None.

 13
 

 

 

TRADEMARK/TRADE NAMES OWNED BY DAC REALTY CORP.

U.S. Trademark Registrations

None.

U.S. Trademark Applications

None.

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

None.

Non-U.S. Trademark Applications

None.

Trade Names

None.

 

 14

Schedule III to the
Guarantee and Collateral Agreement

SKURKA AEROSPACE INC.

U.S. COPYRIGHTS OWNED BY SKURKA AEROSPACE INC.

U.S. Copyright
Registrations

None.

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 15
 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF SKURKA AEROSPACE INC.

AS LICENSOR ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

 

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

 16
 

 

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 17
 

 

PART 2

LICENSEES/SUBLICENSES OF SKURKA AEROSPACE INC.

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

C. Trademarks

 18
 

 

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 19
 

 

PATENTS OWNED BY SKURKA AEROSPACE INC.

U.S. Patent Registrations

None.

U.S. Patent Applications

None.

Non-U.S. Patent Registrations

None.

Non-U.S. Patent Applications

None.

 20
 

 

TRADEMARK/TRADE NAMES OWNED BY SKURKA AEROSPACE INC.

U.S. Trademark Registrations

None.

U.S. Trademark Applications

None.

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

None.

Non-U.S. Trademark Applications

None.

Trade Names

	
  Trade Names

  
	
  Skurka Engineering Co.

  

 

 21
 

 

U.S. COPYRIGHTS OWNED BY TRANSDIGM INC.

U.S. Copyright
Registrations

None.

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 22
 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF TRANSDIGM INC.

AS LICENSOR ON DATE HEREOF

A. Copyrights

None.

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

C. Trademarks

 23
 

 

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 24
 

 

PART 2

LICENSEES/SUBLICENSES OF TRANSDIGM INC.

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

Pursuant
to an Agreement, dated as of March 26, 2001 (the “License Agreement”),
between Honeywell Intellectual Properties Inc., Honeywell International Inc.
(as Licensor) and TransDigm Inc. (as Licensee), Licensor granted to Licensee a
license relating to those patents and applications for patents in the world,
subject to any export controls that may be imposed by the government of the
United States, which cover Licensed Products (as defined in the License
Agreement) and/or Support (as defined in the License Agreement) and which were
at the time of the License Agreement or thereafter owned by Licensor; any and
all continuation, continuation-in-part, divisional, reissue, renewal and
extension, and other patents and patent applications, and reexamination
certificates, that claim in whole or in part the benefit of the filing date of
any of the foregoing; and any and all counterpart foreign patents and patent
applications of any of the foregoing.

U.S. Patent Applications

None.

Non-U.S. Patents

All non-U.S. patents included
in the License Agreement above.

Non-U.S. Patent Applications

None.

 25
 

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 26
 

 

PATENTS OWNED BY TRANSDIGM INC.

U.S. Patent Registrations

 

	
   

  	
  Patent Numbers

  	
   

  	
   

  	
   

  	
  Issue Date

  	
   

  
	
  5,973,903

  	
   

  	
  October 26,
  1999

  
	
  5,975,119

  	
   

  	
  November 2,
  1999

  
	
  6,314,830*

  	
   

  	
  November 13,
  2001

  
	
  6,484,605

  	
   

  	
  November 26,
  2002

  
	
  6,677,844

  	
   

  	
  January 14,
  2004

  
	
  6,729,368

  	
   

  	
  May 4,
  2004

  
	
  6,837,262

  	
   

  	
  January 4,
  2005

  
	
  6,971,682

  	
   

  	
  December 6,
  2005

  

*                    Recorded
assignment from inventor to TransDigm Inc. is missing.

U.S. Patent Applications

	
   

  	
  Application Numbers

  	
   

  	
   

  	
   

  	
  Filing Date

  	
   

  
	
  10/505,756

  	
   

  	
  August 26,
  2004

  
	
  10/727,508

  	
   

  	
  December 5,
  2003

  
	
  10/728,832

  	
   

  	
  December 8,
  2003

  
	
  10/935,149

  	
   

  	
  September 8,
  2004

  
	
  11/061,742

  	
   

  	
  February 22,
  2005

  
	
  11/065,293

  	
   

  	
  December 2,
  2005

  

Non-U.S. Patent Registrations

	
   

  	
  Country

  	
   

  	
   

  	
   

  	
  Issue Date

  	
   

  	
   

  	
   

  	
  Patent No.

  	
   

  
	
  CA

  	
   

  	
  September 28,
  1982

  	
   

  	
  1132430

  
	
  CA

  	
   

  	
  June 10,
  1986

  	
   

  	
  1205722

  
	
  CA

  	
   

  	
  March 9,
  1993

  	
   

  	
  1314193

  
	
  DE

  	
   

  	
  July 6,
  1978

  	
   

  	
  2460225

  
	
  FR

  	
   

  	
  June 19,
  1992

  	
   

  	
  2640347

  
	
  JP

  	
   

  	
  October 20,
  1989

  	
   

  	
  8927188389

  
	
  EP

  	
   

  	
  August 13,
  1999

  	
   

  	
  1104503

  
	
  CA

  	
   

  	
  February 14,
  2006

  	
   

  	
  2340347

  

 

 27
 

 

Non-U.S. Patent Applications

	
   

  	
  Country

  	
   

  	
   

  	
   

  	
  Filing Date

  	
   

  	
   

  	
   

  	
  Application No.

  	
   

  
	
  AU

  	
   

  	
  August 13,
  1999

  	
   

  	
  9,955,516

  
	
  CA

  	
   

  	
  November 10,
  1992

  	
   

  	
  130995

  
	
  CA

  	
   

  	
  February 8,
  2003

  	
   

  	
  2,447,989

  
	
  DE

  	
   

  	
  March 9,
  1993

  	
   

  	
  3927694

  
	
  DE

  	
   

  	
  February 28,
  2003

  	
   

  	
  10392125.7

  
	
  EP

  	
   

  	
  January 3,
  1984

  	
   

  	
  114597

  
	
  EP

  	
   

  	
  April 13,
  2004

  	
   

  	
  04759414.8

  
	
  FR

  	
   

  	
  April 1,
  1994

  	
   

  	
  2607872

  
	
  JP

  	
   

  	
  August 12,
  1999

  	
   

  	
  2002522719

  
	
  JP

  	
   

  	
  August 13,
  1999

  	
   

  	
  565307/00

  
	
  PCT

  	
   

  	
  February 22,
  2005

  	
   

  	
  US
  05/05486

  
	
  PCT

  	
   

  	
  October 6,
  2005

  	
   

  	
  US
  05/094126

  
	
  PCT

  	
   

  	
  December 28,
  2005

  	
   

  	
  US 05/06070

  

 

 28
 

 

TRADEMARK/TRADE NAMES OWNED BY TRANSDIGM INC.

U.S. Trademark Registrations

	
   

  	
  Mark

  	
   

  	
   

  	
   

  	
  Reg. Date

  	
   

  	
   

  	
   

  	
  Reg. No.

  	
   

  
	
  ADEL

  	
   

  	
  February 9,
  1982

  	
   

  	
  1,189,110

  
	
  WIGGINS

  	
   

  	
  May 3, 1983

  	
   

  	
  1,236,043

  

 

U.S. Trademark Applications

None.

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

	
   

  	
  Country

  	
   

  	
   

  	
   

  	
  Mark

  	
   

  	
   

  	
   

  	
  Reg. Date

  	
   

  	
   

  	
   

  	
  Reg. No.

  	
   

  
	
  Australia

  	
   

  	
  WIGGINS

  	
   

  	
  January 27,
  1982

  	
   

  	
  370,922

  
	
  South Africa

  	
   

  	
  WIGGINS

  	
   

  	
  June 16,
  1981

  	
   

  	
  B81/4151

  
	
  South Africa

  	
   

  	
  WIGGINS

  	
   

  	
  December 8,
  1981

  	
   

  	
  B81/9465

  
	
  South Africa

  	
   

  	
  WIGGINS

  	
   

  	
  December 8,
  1981

  	
   

  	
  B81/9466

  
	
  Chile

  	
   

  	
  WIGGINS

  	
   

  	
  August 16,
  2002

  	
   

  	
  639340

  
	
  United Kingdom

  	
   

  	
  WIG-O-FLEX

  	
   

  	
  January 4,
  1976

  	
   

  	
  737,800

  

Non-U.S. Trademark Applications

None.

Trade Names

	
  

  	
   

  	
   

  	
  Trade Names

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Adel Wiggins

  	
   

  	
   

  
	
   

  	
   

  	
  Wiggins Service Systems

  	
   

  	
   

  
	
   

  	
   

  	
  Wiggins Connectors

  	
   

  	
   

  
	
   

  	
   

  	
  Adel Fasteners

  	
   

  	
   

  
	
   

  	
   

  	
  Wiggins Fast Fuel Systems

  	
   

  	
   

  
	
   

  	
   

  	
  AeroControlex

  	
   

  	
   

  
	
   

  	
   

  	
  Fluid Regulators

  	
   

  	
   

  
	
   

  	
   

  	
  Controlex

  	
   

  	
   

  

 

 

 29

 

Schedule
III to the Guarantee and Collateral Agreement

ADAMS RITE AEROSPACE, INC.

 

U.S. COPYRIGHTS OWNED BY
ADAMS RITE AEROSPACE, INC.

U.S. Copyright
Registrations

	
  Title

  	
   

  	
  Reg. No.

  	
   

  	
  Author

  
	
  Faucets

  	
   

  	
  TX-260-690

  	
   

  	
  Adams Rite Products, Inc.

  

 

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 30
 

 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF ADAMS RITE AEROSPACE, INC.

AS LICENSOR ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

C. Trademarks

 31
 

 

 

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 32
 

 

 

PART 2

LICENSEES/SUBLICENSES OF ADAMS RITE AEROSPACE, INC.

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

 33
 

 

 

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 34
 

 

 

PATENTS OWNED BY ADAMS RITE AEROSPACE, INC.

U.S. Patent Registrations

	
  Patent Numbers

  	
   

  	
  Issue Date

  
	
  5,504,950

  	
   

  	
  April 9,
  1996

  
	
  D360,680

  	
   

  	
  July 25,
  1995

  
	
  6,677,844

  	
   

  	
  January 13,
  2004

  
	
  6,902,137

  	
   

  	
  June 7,
  2005

  

*                    Expired

U.S. Patent Applications

	
  Application Numbers

  	
   

  	
  Filing Date

  
	
  11/049,929

  	
   

  	
  February 4,
  2005

  

 

Non-U.S. Patent Registrations

None.

Non-U.S. Patent Applications

None.

 35
 

 

 

TRADEMARK/TRADE NAMES OWNED BY ADAMS RITE AEROSPACE, INC.

U.S. Trademark Registrations

None.

U.S. Trademark Applications

None.

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

None.

Non-U.S. Trademark Applications

None.

Trade Names

 

	
  Trade Names

  
	
  Adams Rite Products

  
	
  Adams Rite Sabre International

  

 

 36
 

 

Schedule
III to the Guarantee and Collateral Agreement

CHAMPION  AEROSPACE INC.

 

U.S. COPYRIGHTS OWNED BY CHAMPION AEROSPACE INC.

U.S. Copyright
Registrations

None.

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 37
 

 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF CHAMPION AEROSPACE INC.

AS LICENSOR ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

	
  Licensee Name

  and Address

  	
   

  	
  Date of License/

  Sublicense

  	
   

  	
  Issue Date

  	
   

  	
  Patent No.

  
	
  John Driscoll

  7800 Netherlands Drive

  Raleigh, North Carolina 27606

  	
   

  	
  November 29,
  1994

  	
   

  	
  January 7,
  1997

  	
   

  	
  5,592,118

  
	
  John Driscoll

  7800 Netherlands Drive

  Raleigh, North Carolina 27606

  	
   

  	
  November 29,
  1994

  	
   

  	
  August 12,
  1997

  	
   

  	
  5,656,966

  
	
  John Driscoll

  7800 Netherlands Drive 

  Raleigh, North Carolina 27606

  	
   

  	
  November 29,
  1994

  	
   

  	
  December 22,
  1998

  	
   

  	
  5,852,381

  

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

 38
 

 

 

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 

 39

 

PART 2

LICENSEES/SUBLICENSES OF CHAMPION AEROSPACE INC.

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

	
  Licensor Name

  and Address

  	
   

  	
  Date of

  License/

  Sublicense

  	
   

  	
  Issue Date

  	
   

  	
  Patent No.

  
	
  Federal-Mogul
  Worldwide, Inc.*

  	
   

  	
  May 31,
  2001

  	
   

  	
  June 14,
  1988

  	
   

  	
  4,751,207

  
	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  January 17,
  1995

  	
   

  	
  5,381,773

  
	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  May 21,
  1996

  	
   

  	
  5,518,968

  
	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  July 16,
  1996

  	
   

  	
  5,535,726

  
	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  October 14,
  1997

  	
   

  	
  5,677,250

  
	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  November 16,
  1999

  	
   

  	
  5,985,473

  
	
  Federal-Mogul Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  August 11,
  1992

  	
   

  	
  RE34,028

  

*                    Expiration
of patent is in dispute.

U.S. Patent Applications

	
  Licensor Name

  and Address

  	
   

  	
  Date of

  License/

  Sublicense

  	
   

  	
  Filing Date

  	
   

  	
  Application No.

  
	
  Federal-Mogul Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  Unknown

  	
   

  	
  Patent Pending-Iridium

  Swaged/Brazed Electrode Assembly

  

 

Non-U.S. Patents

 

 40
 

 

 

	
  Country

  	
   

  	
  Licensor Name

  and Address

  	
   

  	
  Date of License/

  Sublicense

  	
   

  	
  Issue

  Date

  	
   

  	
  Non-U.S.

  Patent No.

  
	
  AU

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  June 14,
  1984

  	
   

  	
  537242

  
	
  AU

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  573008

  
	
  AU

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  July 20,
  1989

  	
   

  	
  586761

  
	
  AU

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8062857

  
	
  AU

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8065688

  
	
  AU

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8543814

  
	
  AU

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8777830

  
	
  BE

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  887047

  
	
  CA

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1132143

  
	
  CA

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  June 5,
  1984

  	
   

  	
  1168531

  
	
  CA

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  February 9,
  1988

  	
   

  	
  1232620

  
	
  CA

  	
   

  	
  Federal-Mogul Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  May 1,
  1999

  	
   

  	
  1268490

  
	
  DE

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  December 10,
  1998

  	
   

  	
  19617794

  
	
  DE

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  December 2,
  1993

  	
   

  	
  3787965

  
	
  DE

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  June 6,
  1991

  	
   

  	
  3036223

  
	
  EPO

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  October 27,
  1993

  	
   

  	
  277178

  
	
  FR

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2468234

  
	
  FR

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2566767

  
	
  FR

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  June 29,
  1984

  	
   

  	
  8022476

  
	
  GB

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2309050

  
	
  GB

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8516124

  
	
  GB

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9519358

  
	
  GB

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9621155

  
	
  IT

  	
          

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1186712

  
	
  IT

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8049941

  

 

 

 41
 

 

 

 

	
  Country

  	
   

  	
  Licensor Name

  and Address

  	
   

  	
  Date of License/

  Sublicense

  	
   

  	
  Issue

  Date

  	
   

  	
  Non-U.S.

  Patent No.

  
	
  IT

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8520927

  
	
  JP

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  February 24,
  1992

  	
   

  	
  56067187

  
	
  JP

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  61,017,468

  
	
  JP

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  92010195

  
	
  MX

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  March 16,
  1983

  	
   

  	
  148143

  
	
  MX

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  155274

  
	
  MX

  	
   

  	
  Federal-Mogul Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  December 4,
  1992

  	
   

  	
  165801

  
	
  MX

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
   

  	
   

  	
  196633

  
	
  MX

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
   

  	
   

  	
  961639

  
	
  NZ

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  August 24,
  1984

  	
   

  	
  195331

  
	
  UK

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  April 9,
  1997

  	
   

  	
  2300449

  
	
  UK

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  October 26,
  1983

  	
   

  	
  2060773

  
	
  UK

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  October 21,
  1987

  	
   

  	
  GB2160858

  
	
  UK

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  January 14,
  1998

  	
   

  	
  GB2294261

  
	
  UK

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  January 7,
  1998

  	
   

  	
  GB2309050

  
	
  VE

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
   

  	
   

  	
  44581

  
	
  ZA

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  August 26,
  1981

  	
   

  	
  8005008

  
	
  ZA

  	
   

  	
  Federal-Mogul Worldwide, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8007059

  

 

 

Non-U.S. Patent Applications

	
  Country

  	
   

  	
  Licensor Name

  and Address

  	
   

  	
  Date of License/

  Sublicense

  	
   

  	
  Filing

  Date

  	
   

  	
  Non-U.S.

  Application No.

  
	
  BR

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  June 21,
  1981

  	
   

  	
  P18006759

  
	
  CA

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  March 25,
  1996

  	
   

  	
  2172585

  
	
  DK

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  March 29,
  1988

  	
   

  	
  8801750

  
	
  IT

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  October 20,
  1980

  	
   

  	
  1127892

  

 

 

 42
 

 

 

 

	
  Country 

  	
   

  	
  Licensor Name

  and Address

  	
   

  	
  Date of License/

  Sublicense

  	
   

  	
  Filing

  Date

  	
   

  	
  Non-U.S.

  Application No.

  
	
  JP

  	
   

  	
  Federal-Mogul
  Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  July 30,
  1987

  	
   

  	
  1503622

  
	
  PCT

  	
   

  	
  Federal-Mogul Worldwide, Inc.

  	
   

  	
  May 31,
  2001

  	
   

  	
  July 30,
  1987

  	
   

  	
  WO8800929

  

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 

 43
 

 

PATENTS OWNED BY CHAMPION
AEROSPACE INC.

U.S. Patent Registrations

	
  

  	
  Patent Numbers

  	
   

  	
   

  	
   

  	
  Issue Date

  	
   

  
	
  4,814,664

  	
   

  	
  March 21,
  1989

  
	
  4,978,309

  	
   

  	
  December 18,
  1990

  
	
  5,028,346

  	
   

  	
  July 2,
  1991

  
	
  5,032,969

  	
   

  	
  July 16,
  1991

  
	
  5,082,806

  	
   

  	
  January 21,
  1992

  
	
  5,083,932

  	
   

  	
  July 11,
  1991

  
	
  5,187,404

  	
   

  	
  August 5,
  1991

  
	
  5,283,499

  	
   

  	
  February 1,
  1994

  
	
  5,402,637

  	
   

  	
  April 4,
  1995

  
	
  5,592,118

  	
   

  	
  January 7,
  1997

  
	
  5,654,868

  	
   

  	
  August 5,
  1997

  
	
  5,656,966

  	
   

  	
  August 12,
  1997

  
	
  5,852,381

  	
   

  	
  December 22,
  1998

  
	
  5,981,982*

  	
   

  	
  November 9,
  1999

  
	
  5,970,324*

  	
   

  	
  October 19,
  1999

  
	
  6,285,008

  	
   

  	
  September 4,
  2001

  
	
  6,297,568

  	
   

  	
  October 2,
  2001

  
	
  7,001,195

  	
   

  	
  February 21,
  2006

  
	
  6,603,216

  	
   

  	
  August 5,
  2003

  

*                    Recorded
assignment from inventor to Champion Aerospace Inc. is missing.

U.S. Patent Applications

 

	
   

  	
  Application Numbers

  	
   

  	
   

  	
   

  	
  Filing Date

  	
   

  
	
  10/616,105

  	
   

  	
  July 9,
  2003

  

 

 

Non-U.S. Patent Registrations

None.

Non-U.S. Patent Applications

	
  Country

  	
   

  	
  Filing Date

  	
   

  	
  Application No.

  
	
  AU

  	
   

  	
  December 23,
  1999

  	
   

  	
  200027139

  
	
  AU

  	
   

  	
  January 11,
  2001

  	
   

  	
  200129352

  
	
  CN

  	
   

  	
  December 23,
  1999

  	
   

  	
  1332895

  
	
  EP

  	
   

  	
  December 23,
  1999

  	
   

  	
  1155485

  
	
  EP

  	
   

  	
  January 11,
  2001

  	
   

  	
  1247317

  
	
  GB

  	
   

  	
  February 22,
  1991

  	
   

  	
  2241739

  
	
  GB

  	
   

  	
  January 24,
  1994

  	
   

  	
  2273612

  
	
  GB

  	
   

  	
  January 24,
  1994

  	
   

  	
  2277212

  
	
  GB

  	
   

  	
  February 22,
  1991

  	
   

  	
  2277414

  
	
  WO

  	
   

  	
  January 11,
  2001

  	
   

  	
  200152376

  
	
  WO

  	
   

  	
  December 23,
  1999

  	
   

  	
  2000039902

  

 

 44
 

 

 

TRADEMARK/TRADE NAMES
OWNED BY CHAMPION AEROSPACE INC.

 

U.S. Trademark Registrations

 

 

	
  Mark

  	
   

  	
  Reg. Date

  	
   

  	
  Reg. No.

  
	
  BRINGING POWER TO
  FLIGHT

  	
   

  	
  November 2,
  1993

  	
   

  	
  1,801,860

  

 

U.S. Trademark Applications

None.

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

None.

Non-U.S. Trademark Applications

None.

	
  

  	
  Trade Names

  	
   

  
	
  Champion
  Aviation Products

  
	
  Champion

  
	
  Champion
  Aerospace

  
	
  Champion
  Spark Plug

  
	
  Champion
  Aviation, Inc.

  
	
  Wagner
  Power Supplies

  
	
  Wagner
  Lamp Banks

  
	
  Auburn
  Igniters

  
	
  Livingston
  Leads and Exciters

  
	
  Champion
  Aviation Products Division

  
	
  Federal-Mogul
  Aviation, Inc.

  
	
  Federal-Mogul
  Aviation Products

  

 

 

 45

 

 

 

Schedule III to the Guarantee and
Collateral Agreement

CHRISTIE ELECTRIC CORP.

U.S. COPYRIGHTS OWNED BY CHRISTIE ELECTRIC CORP.

U.S. Copyright
Registrations

None.

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 46
 

 

 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF CHRISTIE ELECTRIC CORP.

AS LICENSOR ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

 47
 

 

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 48
 

 

 

PART 2

LICENSEES/SUBLICENSES OF CHRISTIE ELECTRIC CORP.

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

C. Trademarks

 49
 

 

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 50
 

 

PATENTS OWNED BY CHRISTIE
ELECTRIC CORP.

U.S. Patent Registrations

None

U.S. Patent Applications

None.

Non-U.S. Patent Registrations

	
  Country

  	
   

  	
  Issue Date

  	
   

  	
  Patent No.

  
	
  AU

  	
   

  	
  September 22,
  1988

  	
   

  	
  8548559

  
	
  CA

  	
   

  	
  September 26,
  1989

  	
   

  	
  1260058

  

 

Non-U.S. Patent Applications

	
  Country

  	
   

  	
  Issue Date

  	
   

  	
  Patent No.

  
	
  EP

  	
   

  	
  October 21,
  1985

  	
   

  	
  181112

  
	
  JP

  	
   

  	
  October 29,
  1985

  	
   

  	
  61221539

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 51
 

 

TRADEMARK/TRADE NAMES
OWNED BY CHRISTIE ELECTRIC CORP.

U.S. Trademark Registrations

	
  Mark

  	
   

  	
  Reg. Date

  	
   

  	
  Reg. No.

  
	
  REFLEX

  	
   

  	
  June 27,
  1972

  	
   

  	
  936,522

  
	
  DIGIFLEX

  	
   

  	
  October 4,
  1983

  	
   

  	
  1,252,763

  
	
  CASP

  	
   

  	
  September 30,
  1986

  	
   

  	
  1,411,141

  
	
  CHRISTIE

  	
   

  	
  October 27,
  1992

  	
   

  	
  1,727,289

  
	
  DATAFX

  	
   

  	
  July 29,
  1997

  	
   

  	
  2,083,649

  
	
  PROEASE

  	
   

  	
  October 9,
  2001

  	
   

  	
  2,496,591

  

 

U.S. Trademark Applications

None.

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

None.

Non-U.S. Trademark Applications

None.

Trade Names

Trade
Names

MarathonNorco

Aerospace

Norco, Inc.

 

 

 52
 

 

Schedule III to the
Guarantee and Collateral Agreement

MARATHONNORCO AEROSPACE, INC.

U.S. COPYRIGHTS OWNED BY MARATHONNORCO AEROSPACE, INC.

U.S. Copyright
Registrations

None.

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 53
 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF MARATHONNORCO AEROSPACE, INC.

AS LICENSOR ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

C. Trademarks

 54
 

 

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 55
 

 

PART 2

LICENSEES/SUBLICENSES OF MARATHONNORCO AEROSPACE, INC.

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

 56
 

 

None.

C. Trademarks

U.S. Trademarks

None

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 57
 

 

PATENTS OWNED BY
MARATHONNORCO AEROSPACE, INC.

U.S. Patent Registrations

	
   

  	
  Patent Numbers

  	
   

  	
   

  	
   

  	
  Issue Date

  	
   

  
	
  5,044,679

  	
   

  	
  September 3,
  1991

  
	
  5,191,805

  	
   

  	
  March 9,
  1993

  
	
  5,192,098

  	
   

  	
  March 9,
  1993

  
	
  5,265,970

  	
   

  	
  November 30,
  1993

  
	
  5,364,201

  	
   

  	
  November 15,
  1994

  
	
  5,366,313

  	
   

  	
  November 22,
  1994

  
	
  5,592,852

  	
   

  	
  January 14,
  1997

  
	
  5,680,795

  	
   

  	
  October 28,
  1997

  
	
  5,709,127

  	
   

  	
  January 20,
  1998

  
	
  5,860,324*

  	
   

  	
  January 19,
  1999

  
	
  5,950,997

  	
   

  	
  October 28,
  1997

  
	
  6,428,060

  	
   

  	
  August 6,
  2002

  

*       Recorded
assignment from inventor to MarathonNorco Aerospace, Inc. is missing.

U.S. Patent Applications

	
   

  	
  Application Numbers

  	
   

  	
   

  	
   

  	
  Filing Date

  	
   

  
	
  08/934,602

  	
   

  	
  Unknown

  

Non-U.S. Patent Registrations

None.

Non-U.S. Patent Applications

	
   

  	
  Country

  	
   

  	
   

  	
   

  	
  Filing Date

  	
   

  	
   

  	
   

  	
  Application No.

  	
   

  
	
  AU

  	
   

  	
  October 19,
  1995

  	
   

  	
  9540087*

  
	
  AU

  	
   

  	
  July 1,
  1996

  	
   

  	
  9664048*

  
	
  WO

  	
   

  	
  October 19,
  1995

  	
   

  	
  9614522*

  
	
  WO

  	
   

  	
  July 1, 1996

  	
   

  	
  9702441*

  

*       Patents
being assigned to Marathon Power Technologies Company by Norco, Inc.

 58
 

 

TRADEMARK/TRADE NAMES
OWNED BY MARATHONNORCO AEROSPACE, INC.

U.S. Trademark Registrations

	
   

  	
  Mark

  	
   

  	
   

  	
   

  	
  Reg. Date

  	
   

  	
   

  	
   

  	
  Reg. No.

  	
   

  
	
  BALL REVERSER

  	
   

  	
  December 30,
  1980

  	
   

  	
  1,144,720

  
	
  NORCO INC. (and Design)

  	
   

  	
  May 12,
  1981

  	
   

  	
  1,153,612

  
	
  MARATHON

  	
   

  	
  April 16,
  1985

  	
   

  	
  1,330,727

  
	
  SUPERPOWER

  	
   

  	
  July 9,
  1985

  	
   

  	
  1,347,534

  
	
  FN (and Design)

  	
   

  	
  September 10,
  1985

  	
   

  	
  1,358,860

  
	
  FLENNUT

  	
   

  	
  October 1,
  1996

  	
   

  	
  2,004,333

  
	
  M (and Design)

  	
   

  	
  March 5,
  2002

  	
   

  	
  2,543,727

  
	
  M MARATHON (and Design)

  	
   

  	
  December 2,
  2003

  	
   

  	
  2,787,789

  
	
  M MARATHON SUPERPOWER (and Design)

  	
   

  	
  December 2,
  2003

  	
   

  	
  2,787,788

  

U.S. Trademark Applications

	
   

  	
  Mark

  	
   

  	
   

  	
   

  	
  Filing Date

  	
   

  	
   

  	
   

  	
  Application No.

  	
   

  
	
  M Marathon Superpower (and Design)

  	
   

  	
  February 2,
  1999

  	
   

  	
  75/632,368

  
	
  M Marathon (and Design)

  	
   

  	
  February 2,
  1999

  	
   

  	
  75/632,383

  

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

	
   

  	
  Country

  	
   

  	
   

  	
   

  	
  Mark

  	
   

  	
   

  	
   

  	
  Reg. Date

  	
   

  	
   

  	
   

  	
  Reg. No.

  	
   

  
	
  Canada

  	
   

  	
  MARATHON

  	
   

  	
  September 17,
  2001

  	
   

  	
  550,881

  
	
  CTM

  	
   

  	
  MARATHON

  	
   

  	
  October 9,
  2001

  	
   

  	
  1,220,789

  
	
  United Kingdom

  	
   

  	
  MARATHON

  	
   

  	
  May 4, 1985

  	
   

  	
  B1,241,295

  

 

Non-U.S. Trademark
Applications

None

 

 59

Trade Names

	
  

  	
  Trade Names

  	
   

  
	
  MarathonNorco

  
	
  Aerospace

  
	
  Norco, Inc.

  
	
  Marathon Power
  Technologies Company

  

 

 60
 

Schedule III to the
Guarantee and Collateral Agreement

ZMP, INC.

 

U.S. COPYRIGHTS OWNED BY ZMP, INC.

U.S. Copyright
Registrations

None.

Pending U.S. Copyright Applications for Registration

None.

Non-U.S. Copyright Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 61
 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES OF ZMP, INC.

AS LICENSOR ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

 62
 

 

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 63
 

PART 2

LICENSEES/SUBLICENSES OF ZMP, INC.

AS LICENSEE ON DATE HEREOF

A. Copyrights

U.S. Copyrights

None.

Non-U.S. Copyrights

None.

B. Patents

U.S. Patents

None.

U.S. Patent Applications

None.

Non-U.S. Patents

None.

Non-U.S. Patent Applications

None.

 64
 

 

C. Trademarks

U.S. Trademarks

None.

U.S. Trademark Applications

None.

Non-U.S. Trademarks

None.

Non-U.S. Trademark Applications

None.

D. Others

None.

 65
 

 

PATENTS OWNED BY ZMP, INC.

U.S. Patent Registrations

None.

U.S. Patent Applications

None.

Non-U.S. Patent Registrations

None.

Non-U.S. Patent Applications

None.

 66
 

 

TRADEMARK/TRADE NAMES OWNED BY ZMP, INC.

U.S. Trademark Registrations

None.

U.S. Trademark Applications

None.

State Trademark Registrations

None.

Non-U.S. Trademark Registrations

None

Non-U.S. Trademark Applications

None.

Trade Names

Trade
Names

Adams Rite Products

Adams Rite Sabre International

 

 

 

 67
 

Schedule III to
the Guarantee and Collateral Agreement

AVIONIC INSTRUMENTS INC.

U.S. COPYRIGHTS
OWNED BY AVIONIC INSTRUMENTS INC.

 

U.S. Copyright
Registrations

None.

 

Pending U.S.
Copyright Applications for Registration

None.

 

Non-U.S. Copyright
Registrations

None.

 

Non-U.S. Pending
Copyright Applications for Registration

None.

 68
 

LICENSES

PART 1

LICENSES/SUBLICENSEES
OF AVIONIC INSTRUMENTS INC.

AS LICENSOR ON
DATE HEREOF

A.  Copyrights

U.S. Copyrights

None.

Non-U.S.
Copyrights

None.

B.  Patents

U.S. Patents

None.

 

U.S. Patent
Applications

None.

 

Non-U.S. Patents

None.

 

Non-U.S. Patent
Applications

None.

 

C.  Trademarks

U.S. Trademarks

 69

 

 

None.

 

U.S. Trademark
Applications

None.

 

Non-U.S.
Trademarks

None.

 

Non-U.S. Trademark
Applications

None.

 

D.  Others

None.

 

 70
 

 

 

PART 2

LICENSEES/SUBLICENSES
OF AVIONIC INSTRUMENTS INC.

AS LICENSEE ON DATE HEREOF

A.  Copyrights

U.S. Copyrights

None.

 

Non-U.S.
Copyrights

None.

B.  Patents

U.S. Patents

None.

 

U.S. Patent
Applications

None.

 

Non-U.S. Patents

None.

 

Non-U.S. Patent
Applications

None.

C.  Trademarks

 71
 

 

 

U.S. Trademarks

None

 

U.S. Trademark
Applications

None.

 

Non-U.S.
Trademarks

None.

 

Non-U.S. Trademark
Applications

None.

D.  Others

None.

 72
 

 

 

PATENTS OWNED BY
AVIONIC INSTRUMENTS INC.

U.S. Patent
Registrations

	
  

  	
  Patent Numbers

  	
   

  	
   

  	
   

  	
  Issue Date

  	
   

  
	
  5,444,357

  	
   

  	
  August
  22, 1995

  
	
  5,424,933

  	
   

  	
  June
  13, 1995

  
	
  6,388,393

  	
   

  	
  May
  14, 2002

  
	
  5,831,838

  	
   

  	
  November
  3, 1998

  
	
  6,144,193

  	
   

  	
  November
  7, 2000

  
	
  6,256,213

  	
   

  	
  July
  3, 2001

  
	
  6,282,111

  	
   

  	
  August
  28, 2001

  
	
  6,742,626

  	
   

  	
  June
  1, 2004

  
	
  6,612,402

  	
   

  	
  September
  2, 2003

  
	
  6,464,459

  	
   

  	
  October 15, 2002

  

 

U.S. Patent
Applications

	
  

  	
  Application Numbers

  	
   

  	
   

  	
   

  	
  Filing Date

  	
   

  
	
  08
  558,643, continuation of 08 340,281 (as it

  relates to patent no. 6,388,393 below)

  	
   

  	
  November
  27, 1996, continuation of filing made

  November 16, 1994

  
	
  10/233,710*

  	
   

  	
  August 19, 2002

  

*       Applied
for under the name of Lewis Illingworth

Non-U.S. Patent Registrations

None.

Non-U.S. Patent
Applications

None.

 

 73
 

 

 

TRADEMARK/TRADE
NAMES OWNED BY AVIONIC INSTRUMENTS INC.

U.S. Trademark
Registrations

	
  

  	
  Mark

  	
   

  	
   

  	
   

  	
  Reg. Date

  	
   

  	
   

  	
   

  	
  Reg. No.

  	
   

  
	
  AEROSPACE FOR INDUSTRY

  	
   

  	
  November 17,
  1998

  	
   

  	
  2,204,172

  

U.S. Trademark Applications

None.

 

State Trademark
Registrations

None.

 

Non-U.S. Trademark
Registrations

None

 

Non-U.S. Trademark
Applications

None.

Trade Names

 

	
  Trade Names

  
	
  REA International

  

 

 74
 

 

 

Schedule
III to the Guarantee and Collateral Agreement

SWEENEY ENGINEERING CORP.

 

U.S. COPYRIGHTS
OWNED BY SWEENEY ENGINEERING CORP.

U.S. Copyright Registrations

None.

 

Pending U.S.
Copyright Applications for Registration

None.

 

Non-U.S. Copyright
Registrations

None.

Non-U.S. Pending Copyright Applications for
Registration

None.

 

 75
 

 

 

LICENSES

PART 1

LICENSES/SUBLICENSEES
OF SWEENEY ENGINEERING CORP.

AS LICENSOR ON DATE HEREOF

A.  Copyrights

U.S. Copyrights

None.

 

Non-U.S.
Copyrights

None.

 

B.  Patents

 

U.S. Patents

None.

 

U.S. Patent
Applications

None.

 

Non-U.S. Patents

None.

 

Non-U.S. Patent
Applications

None.

 

 76
 

 

 

C.  Trademarks

U.S. Trademarks

None.

 

U.S. Trademark
Applications

None.

 

Non-U.S.
Trademarks

None.

 

Non-U.S. Trademark
Applications

None.

 

D.  Others

None.

 

 77
 

 

 

PART 2

LICENSEES/SUBLICENSES
OF SWEENEY ENGINEERING CORP.

AS LICENSEE ON DATE HEREOF

A.  Copyrights

U.S. Copyrights

None.

 

Non-U.S.
Copyrights

None.

B.  Patents

U.S. Patents

None.

 

U.S. Patent
Applications

None.

 

Non-U.S. Patents

None.

 

Non-U.S. Patent
Applications

None.

 78
 

 

 

C.  Trademarks

U.S. Trademarks

None.

 

U.S. Trademark
Applications

None.

 

Non-U.S.
Trademarks

None.

 

Non-U.S. Trademark
Applications

None.

D.  Others

None.

 79

 

 

PATENTS OWNED BY
SWEENEY ENGINEERING CORP.

U.S. Patent
Registrations

None.

U.S. Patent
Applications

None.

Non-U.S. Patent Registrations

None.

Non-U.S. Patent
Applications

None.

 80
 

 

 

TRADEMARK/TRADE
NAMES OWNED BY SWEENEY ENGINEERING CORP.

U.S. Trademark
Registrations

None.

U.S. Trademark
Applications

None.

State Trademark
Registrations

None.

Non-U.S. Trademark
Registrations

None.

Non-U.S. Trademark
Applications

None.

Trade Names

None.

 81

 

Exhibit A to
the

Guarantee and

Collateral Agreement

SUPPLEMENT
NO. [   •   ] dated as of [   •   ],
to the Guarantee and Collateral Agreement dated as of June 23, 2006  (the “Guarantee and Collateral Agreement”), among TRANSDIGM INC., a Delaware corporation (the “Borrower”), TRANSDIGM GROUP INCORPORATED, a Delaware corporation (“Holdings”), each subsidiary of the Borrower listed on Schedule I thereto
(each such subsidiary individually a “SubsidiaryGuarantor” and collectively, the “Subsidiary Guarantors”;
the Subsidiary Guarantors, Holdings and the Borrower are referred to
collectively herein as the “Grantors”) and CREDIT SUISSE as
administrative agent and collateral agent (in such capacity, the “Agent”) for the Secured Parties (as defined herein).

A.
Reference is made to the Credit Agreement dated as of June 23, 2006  (as amended, supplemented or otherwise
modified from time to time, the “Credit
Agreement”), among
the Borrower, Holdings, each subsidiary of the Borrower from time to time party
thereto, the lenders named therein (the “Lenders”),
and Credit Suisse, as administrative agent and collateral agent (in such
capacity, the “Agent”) for the Lenders.

B.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Credit Agreement or the Guarantee and
Collateral Agreement referred to therein, as applicable.

C.
The Grantors have entered into the Guarantee and Collateral Agreement in order
to induce the Lenders to make Loans and the Issuing Bank to issue Letters of
Credit. Section 7.16 of the Guarantee and Collateral Agreement provides
that additional Domestic Subsidiaries of the Loan Parties may become Subsidiary
Guarantors and Grantors under the Guarantee and Collateral Agreement by
execution and delivery of an instrument in the form of this Supplement. The
undersigned Subsidiary (the “New
Subsidiary”) is
executing this Supplement in accordance with the requirements of the Credit
Agreement to become a Subsidiary Guarantor and a Grantor under the Guarantee
and Collateral Agreement in order to induce the Lenders to make additional
Loans and the Issuing Bank to issue additional Letters of Credit and as
consideration for Loans previously made and Letters of Credit previously
issued.

Accordingly,
the Agent and the New Subsidiary agree as follows:

SECTION 1.
In accordance with Section 7.16 of the Guarantee and Collateral Agreement,
the New Subsidiary by its signature below becomes a Grantor and Subsidiary
Guarantor under the Guarantee and Collateral Agreement with the same force and
effect as if originally named therein as a Grantor and Subsidiary Guarantor and
the New Subsidiary hereby (a) agrees to all the terms and provisions of
the Guarantee and Collateral Agreement applicable to it as a Grantor and
Subsidiary Guarantor thereunder and (b) represents and warrants that the
representations and warranties made by it as a Grantor and Subsidiary Guarantor
thereunder are true and correct in all material respects on and as of the date
hereof. In furtherance of the foregoing, the New Subsidiary, as security for
the payment and performance in full of the Secured Obligations (as defined in
the Guarantee and Collateral Agreement), does hereby create and grant to the
Agent,

 

 

 

its
successors and assigns, for the benefit of the Secured Parties, their
successors and assigns, a security interest in and lien on all of the New
Subsidiary’s right, title and interest in and to the Collateral (as defined in
the Guarantee and Collateral Agreement) of the New Subsidiary. Each reference
to a “Grantor” or a “Subsidiary Guarantor”
in the Guarantee and Collateral Agreement shall be deemed to include the New
Subsidiary. The Guarantee and Collateral Agreement is hereby incorporated
herein by reference.

SECTION 2.
The New Subsidiary represents and warrants to the Agent and the other Secured
Parties that this Supplement has been duly authorized, executed and delivered
by it and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms.

SECTION 3.
This Supplement may be executed in counterparts (and by different parties
hereto on different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. This
Supplement shall become effective when the Agent shall have received
counterparts of this Supplement that, when taken together, bear the signatures
of the New Subsidiary and the Agent. Delivery of an executed signature
page to this Supplement by facsimile transmission shall be as effective as
delivery of a manually signed counterpart of this Supplement.

SECTION 4.
The New Subsidiary hereby represents and warrants that (a) set forth on
Schedule I attached hereto is a true and correct schedule of the location
of any and all Collateral of the New Subsidiary and (b) set forth under
its signature hereto, is the true and correct legal name of the New Subsidiary,
its jurisdiction of formation and the location of its chief executive office.

SECTION 5.
Except as expressly supplemented hereby, the Guarantee and Collateral Agreement
shall remain in full force and effect.

SECTION 6.
THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.

SECTION 7.
In case any one or more of the provisions contained in this Supplement should
be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and in
the Guarantee and Collateral Agreement shall not in any way be affected or impaired
thereby (it being understood that the invalidity of a particular provision in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

SECTION 8.
All communications and notices hereunder shall be in writing and given as
provided in Section 7.01 of the Guarantee and Collateral Agreement.

 

 2
 

 

 

All
communications and notices hereunder to the New Subsidiary shall be given to it
at the address set forth under its signature below.

SECTION 9.
The New Subsidiary agrees to reimburse the Agent for its reasonable
out-of-pocket expenses in connection with this Supplement, including the
reasonable fees, other charges and disbursements of counsel for the Agent.

IN
WITNESS WHEREOF, the New Subsidiary and the Agent have duly executed this
Supplement to the Guarantee and Collateral Agreement as of the day and year
first above written.

	
  [NAME OF NEW SUBSIDIARY],

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  Address:

  
	
   

  	
  Legal Name:

  
	
   

  	
  Jurisdiction of
  Formation:

  
	
   

  	
  Location of
  Chief Executive Office:

  
	
   

  
	
   

  
	
  CREDIT SUISSE,
  as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 3

 

 

Schedule I to

Supplement No.    
to the

Guarantee and

Collateral Agreement

 

 

LOCATION OF
COLLATERAL

	
  

  	
  Description

  	
   

  	
   

  	
  

  	
  Location

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

JURISDICTION OF FORMATION

 

 

 

Schedule II to

Supplement
No.   

to the Guarantee and

Collateral Agreement

Pledged Securities
of the New Subsidiary

CAPITAL STOCK

	
  Issuer

  	
   

  	
   

  	
   

  	
  Number of

  Certificate

  	
   

  	
  Registered

  Owner

  	
   

  	
  Number and

  Class of

  Equity Interests

  	
   

  	
  Percentage of

  Equity Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

DEBT SECURITIES

	
  Issuer

  	
   

  	
   

  	
   

  	
  Principal

  Amount

  	
   

  	
  Date of Note

  	
   

  	
  Maturity Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

INTELLECTUAL PROPERTY

 

 

Exhibit B to

Guarantee and

Collateral
Agreement

 

 

FORM OF
PERFECTION CERTIFICATE

Reference is made to (a) the Credit Agreement
dated as of June 23, 2006  (as
amended, supplemented, or otherwise modified from time to time, the “Credit Agreement”), among TransDigm
Inc. (the “Borrower”), a Delaware corporation, TransDigm Group
Incorporated, a Delaware corporation (“Holdings”), each subsidiary of
the Borrower from time to time party thereto, the Lenders and Credit Suisse, as
administrative agent and collateral agent for the Lenders hereunder (in such
capacities, the “Agent”) and (b) the Guarantee and Collateral
Agreement dated as of June 23, 2006 
among the Borrower, Holdings, the Subsidiaries identified therein (the “Guarantors”) and the Agent.
Capitalized terms used but not defined herein have the meanings assigned in the
Credit Agreement or the Collateral Documents referred to therein, as
applicable.

The undersigned, a Financial Officer and general
counsel, respectively, of the Borrower, hereby certify to the Agent and each
other Secured Party as follows:

1. Names. (a) 
The exact legal name of each Grantor, as such name appears in its respective
certificate of formation, is as follows:

(b) Set forth below is each other legal name each
Grantor has had in the past five years, together with the date of the relevant
change:

(c) Except as set forth in Schedule 1
hereto, no Grantor has changed its identity or corporate structure in any way
within the past five years. Changes in identity or corporate structure would include
mergers, consolidations and acquisitions, as well as any change in the form,
nature or jurisdiction of organization. If any such change has occurred,
include in Schedule 1 the information required by Sections 1 and 2 of
this certificate as to each acquiree or constituent party to a merger or
consolidation.

(d) The following is a list of all other names
(including trade names or similar appellations) used by each Grantor or any of
its divisions or other business units in connection with the conduct of its
business or the ownership of its properties at any time during the past five
years:

(e) Set forth below is the Organizational
Identification Number, if any, issued by the jurisdiction of formation of each
Grantor that is a registered organization:

2. Current
Locations. (a)  The chief executive office of each Grantor is located
at the address set forth opposite its name below:

	
   

  	
  Grantor

  	
   

  	
   

  	
   

  	
  Mailing Address

  	
   

  	
   

  	
   

  	
  County

  	
   

  	
   

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

(b) Set forth below
opposite the name of each Grantor are all locations where such Grantor
maintains any books or records relating to any Accounts Receivable (with each
location at which chattel paper, if any, is kept being indicated by an “*”):

 

 

 

	
   

  	
  Grantor

  	
   

  	
   

  	
   

  	
  Mailing Address

  	
   

  	
   

  	
   

  	
  County

  	
   

  	
   

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

(c) The jurisdiction
of formation of each Grantor that is a registered organization is set forth
opposite its name below:

	
   

  	
  Grantor:

  	
   

  	
   

  	
   

  	
  Jurisdiction:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

(d) Set forth below
opposite the name of each Grantor are all the locations where such Grantor
maintains any Equipment or other Collateral not identified above:

	
   

  	
  Grantor

  	
   

  	
   

  	
   

  	
  Mailing Address

  	
   

  	
   

  	
   

  	
  County

  	
   

  	
   

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

(e) Set forth below
opposite the name of each Grantor are all the places of business of such
Grantor not identified in paragraph (a), (b), (c) or (d) above:

	
   

  	
  Grantor

  	
   

  	
   

  	
   

  	
  Mailing Address

  	
   

  	
   

  	
   

  	
  County

  	
   

  	
   

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

(f) Set forth below
opposite the name of each Grantor are the names and addresses of all Persons
other than such Grantor that have possession of any of the Collateral of such
Grantor:

	
   

  	
  Grantor

  	
   

  	
   

  	
   

  	
  Mailing Address

  	
   

  	
   

  	
   

  	
  County

  	
   

  	
   

  	
   

  	
  State

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

3.
Unusual Transactions. All Accounts have been originated by the
Grantors and all Inventory has been acquired by the Grantors in the ordinary
course of business.

4. File Search Reports.
File search reports have been obtained from each Uniform Commercial Code filing
office identified with respect to such Grantor in Section 2 hereof, and
such search reports reflect no liens against any of the Collateral other than
those permitted under the Credit Agreement.

5. UCC Filings.
Financing statements in substantially the form of Schedule 5 hereto have been
prepared for filing in the proper Uniform Commercial Code filing office in the
jurisdiction in which each Grantor is located and, to the extent any of the
collateral is comprised of fixtures, timber to be cut or as extracted
collateral from the wellhead or minehead, in the proper local jurisdiction, in
each case as set forth with respect to such Grantor in Section 2 hereof.

6. Schedule of Filings.
Attached hereto as Schedule 6 is a schedule setting forth, with respect to the
filings described in Section 5 above, each filing and the filing office in
which such filing is to be made.

 

 2
 

 

 

7. Stock Ownership
and other Equity Interests. Attached hereto as Schedule 7 is a true and
correct list of all the issued and outstanding stock, partnership interests,
limited liability company membership interests or other equity interest of the
Borrower and each Subsidiary and the record and beneficial owners of such
stock, partnership interests, membership interests or other equity interests.
Also set forth on Schedule 7 is each equity investment of Holdings, the
Borrower or any Subsidiary that represents 50% or less of the equity of the
entity in which such investment was made.

8. Debt
Instruments. Attached hereto as Schedule 8 is a true and correct list
of all promissory notes and other evidence of indebtedness held by Holdings,
the Borrower and each Subsidiary that are required to be pledged under the
Guarantee and Collateral Agreement, including all applicable intercompany notes
between Holdings and each Subsidiary of Holdings and each Subsidiary of
Holdings and each other such Subsidiary.

9. Advances.
Attached hereto as Schedule 9 is (a) a true and correct list of all
advances made by the Borrower to any Subsidiary of the Borrower or made by any
Subsidiary of the Borrower to the Borrower or to any other Subsidiary of the
Borrower (other than those identified on Schedule 8), which advances are on the
date hereof evidenced by one or more intercompany notes pledged to the Agent
pursuant to the requirements of the Guarantee and Collateral Agreement and (b) a
true and correct list of all unpaid intercompany transfers of goods sold and
delivered by or to the Borrower or any Subsidiary of the Borrower.

10. Intellectual
Property. Attached hereto as Schedule 10(A) in proper form for
filing with the United States Patent and Trademark Office is a schedule setting
forth all of each Grantor’s Patents, Patent Licenses, Trademark registrations
and applications, and Trademark Licenses, including, in each case,  the name of the registered owner, the
registration number and the expiration date of each Patent and Trademark owned
by any Grantor. Attached hereto as Schedule 10(B) in proper form for
filing with the United States Copyright Office is a schedule setting forth all
of each Grantor’s registered Copyright registrations and applications and
Copyright Licenses, including, in each case, the name of the registered owner,
the registration number and the expiration date of each Copyright owned by any
Grantor.

11. Mortgage
Filings. Attached hereto as Schedule 11 is a schedule setting forth, with
respect to each mortgaged property, (a) the exact name of the person who
owns such property as such name appears in its certificate of incorporation or
other organizational document, (b) if different from the name identified
pursuant to clause (a), the exact name of the current record owner of such
property reflected in the records of the filing office for such property
identified pursuant to the following clause and (c) the filing office in
which a mortgage with respect to such property must be filed or recorded in
order for the Agent to obtain a perfected security interest therein.

12. Commercial
Tort Claims. Attached hereto as Schedule 12 is a true and correct list of
commercial tort claims in excess of $500,000 held by any Grantor, including a
brief description thereof.

 

 3
 

 

 

13. Transmitting
Utility. Attached hereto as Schedule 13 is a true and correct list of
each Grantor that is a Transmitting Utility within the meaning of Section 9-102(a) of
the New York Uniform Commercial Code.

 

 4
 

 

 

IN WITNESS WHEREOF, the undersigned have duly executed
this certificate on this 23rd day of June, 2006.

	
  TRANSDIGM GROUP
  INCORPORATED,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  TRANSDIGM INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 5EXHIBIT 4.2

CERTIFICATE OF
AMENDMENT OF THE

FIFTH AMENDED AND RESTATED

CERTIFICATE OF INCORPORATION OF

ARENA PHARMACEUTICALS, INC.

ARENA PHARMACEUTICALS, INC.,
a corporation organized and existing under the laws of the State of Delaware
(the “Corporation”), hereby certifies as
follows:

FIRST:        The
name of the Corporation is Arena Pharmaceuticals, Inc.

SECOND:  The
original Certificate of Incorporation was filed with the Secretary of State of
the State of Delaware on April 14, 1997 under the original name Arena
Pharmaceuticals, Inc. The Certificate of Incorporation was subsequently
amended and restated on June 26, 1997, November 26, 1997, January 29,
1999, August 1, 2000 and June 11, 2002.

THIRD:      At
a meeting of the Board of Directors of the Corporation, resolutions were duly
adopted providing that the second and third sentences of Paragraph A of Article IV
of the Fifth Amended and Restated Certificate of Incorporation of the
Corporation shall be amended and restated to read in their entirety as follows:

“The total number of shares which the Corporation is
authorized to issue is One Hundred Fifty Million (150,000,000) shares, One
Hundred Forty Two Million Five Hundred Thousand (142,500,000) shares of which
shall be Common Stock (the “Common Stock”) and Seven Million Five Hundred
Thousand (7,500,000) shares of which shall be Preferred Stock (the “Preferred
Stock”). The Preferred Stock shall have a par value of $.0001 per share and the
Common Stock shall have a par value of $.0001 per share.”

FOURTH:  Thereafter, this
Certificate of Amendment to the Fifth Amended and Restated Certificate of
Incorporation was duly adopted at the 2006 annual meeting of the stockholders,
which was duly called and held, upon notice in accordance with Section 222
of the General Corporation Law of the State of Delaware, by the holders of at
least a majority of the Corporation’s outstanding stock in accordance with Section 242
of the General Corporation Law of the State of Delaware.

IN
WITNESS WHEREOF,
Arena Pharmaceuticals, Inc. has caused this Certificate of Amendment to be
signed by its Senior Vice President, General Counsel and Secretary this 14th
day of June, 2006.

	
  

  	
  Arena Pharmaceuticals, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven W. Spector

  
	
   

  	
   

  	
  Steven W. Spector, Senior Vice President,

  
	
   

  	
   

  	
  General Counsel and Secretary

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