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Exhibit 10.9    
    

 
 

MANAGEMENT AGREEMENT    
    

        THIS MANAGEMENT AGREEMENT (this "Agreement") is made and entered into as of July 6, 1999, by and between KRG Capital Partners, L.L.C., a Delaware limited
liability company ("KRG"), Medical Device Manufacturing, Inc., a Colorado corporation ("MDM"), and G&D, Inc., a Colorado corporation d/b/a Star Guide Corporation ("Star Guide"). 

 
 

BACKGROUND    
    

        MDM, Star Guide, and each of their respective subsidiaries, if any (collectively, the "Company"), desire to receive transaction advisory, financial and management
consulting services from KRG and thereby obtain the benefit of KRG's experience in mergers, acquisitions, buyouts, industry consolidations and business and financial management generally and its
knowledge of the Company's financial affairs in particular. KRG is willing to provide transaction advisory, financial and management consulting services to the Company. Accordingly, the compensation
arrangements set forth in this Agreement are designed to compensate KRG for such services. 

        NOW,
THEREFORE, in consideration of the premises, the respective agreements hereinafter set forth and the mutual benefits to be derived herefrom, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, each of KRG and the Company hereby agree as follows: 

 
 

TERMS    
    

1.     ENGAGEMENT.  

        The Company hereby engages KRG as a financial and management consultant and transaction advisor, and KRG hereby agrees to provide financial and management
consulting and transaction advisory services to the Company, all on the terms and subject to the conditions set forth below. 

2.     SERVICES OF KRG.  

        KRG hereby agrees during the term of this engagement to consult with the Company's boards of directors (collectively, the "Board") and management of the Company
in such manner and on such business and financial matters as may be reasonably requested from time to time by the Board, including, but not limited to: 

	(i)
	Corporate,
acquisition and divestiture strategies;

	(ii)
	Budgeting
of future corporate investments;

	(iii)
	Public
offerings;

	(iv)
	Debt
and equity financings;

	(v)
	Sourcing
and identifying potential acquisition candidates;

	(vi)
	Establishing
initial contact and negotiating letters of intent with targets;

	(vii)
	Formulating
and negotiating acquisition structures (i.e., stock/cash mix, earnouts, compensation, etc.);

	(viii)
	Financial
modeling of target acquisitions;

	(ix)
	Oversight
of lender approval process;

	(x)
	Oversight
of due diligence process (including specialists, i.e., environmental, ERISA, insurance, tax, etc.);

	(xi)
	Negotiating
definitive acquisition agreements and ancillary documents; 

 

	(xii)
	Coordination
and oversight of closing process;

	(xiii)
	Assisting
management in implementation of integration strategy and post-closing matters (i.e., identifying potential cost savings, plant closings, employee matters,
lease negotiations, supply agreements and other consolidation opportunities); and

	(xiv)
	Assisting
management in presentations to the investment community and analysts of acquired companies and results of acquisition strategy. 

Principals
of KRG will be available to serve on the Board and will devote such time and attention to the Company's affairs as reasonably necessary to accomplish the purposes of this Agreement. 

3.     COMPENSATION.  

        (a)   The
Company hereby agrees to pay to KRG, as compensation for services to be rendered by KRG hereunder, an aggregate fee equal to $200,000 per year (the "Base Fee"). The
Base Fee will increase to $300,000 per year, or such greater amount as may be approved by the Board, effective as of the closing of the Company's acquisition of HV Technologies, Inc. ("HVT") or
of any alternative initial acquisition in the event that the closing of HVT does not occur. Any subsequent increase in the Base Fee will be effective only upon approval by the Board. The Base Fee, as
set forth herein and established from time to time, will be payable in twelve (12) equal monthly installments, with payment in full of each such installment due by the fifth day of each
calendar month. In addition to the Base Fee, the Company agrees to pay to KRG, as compensation for services rendered to the Company with respect to the consummation of any acquisition of a medical
supply manufacturing business or any other acquisition in furtherance of the Company's business strategy, which transaction closes after the date hereof, a transaction closing fee (the "Transaction
Closing Fee") equal to the greater of (i) $75,000, or (ii) one percent (1%) of the Transaction Value. Notwithstanding the foregoing, (i) KRG's fees in connection with the closing
of the Star Guide acquisition will be set forth in Section 3(b), and (ii) the Transaction Closing Fee may be adjusted upward if the Board determines that an acquisition transaction
presented unusual complexities. For purposes of this Agreement, "Transaction Value" will mean the aggregate of all cash and non-cash consideration paid to the sellers of the company or
business being acquired and the value of all interest-bearing debt assumed by the Company. Any non-cash consideration will be valued at fair market value, and the value of any equity
securities issued will be fair market value on the date of issuance, assuming such equity securities are fully vested on such date. 

        (b)   In
addition to the fees set forth in Section 3(a) above, the Company hereby further agrees to pay to KRG: (i) a $300,000 transaction fee for KRG's services
performed in connection with the Star Guide acquisition, and (ii) certain fees as set forth below in Section 4. 

        (c)   In
addition to the fees set forth in Section 3(a) above, in the event of the Sale of the Company (as hereinafter defined), KRG shall be entitled to a fee equal to
(i) one per cent (1%) percent of the Transaction Value of the Sale of the Company, if the Company does not retain an investment banking firm to act on its behalf in connection with the
transaction and (ii) one-half of one per cent (.5%) of the Transaction Value if the Company does retain an investment banking firm, provided that in no event shall such fee exceed
$750,000 unless approved in advance by the Board. 

4.     TERM.  

        This Agreement will be in effect for an initial term of five (5) years, commencing on the date hereof, and will be renewed automatically thereafter on a
year-to-year basis unless one party gives the other thirty (30) days' prior written notice of its desire not to renew this Agreement; provided,
however, that this Agreement will immediately terminate on the date KRG gives the Company written notice of termination. In the event of a Sale of the Company or an initial
public offering of shares of the capital 

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stock
of either MDM or Star Guide (either, an "IPO"), this Agreement will be automatically renewed, without further action or notice by KRG or the Company, for an additional five (5)-year
term unless the Board, not later than sixty (60) days after the closing of a Sale of the Company or an IPO, gives KRG written notice of its desire not to renew this Agreement for such term. In
the event that the Board terminates this Agreement by delivering the required written notice upon an IPO or Sale of the Company, the Company agrees to pay KRG an accelerated cash payment in an amount
equal to the Base Fee (as then in effect) for a period of time that is the longer of (A) two and one-half (21/2) years, or (B) the remainder of the term of the
Agreement. As used herein, the term "Sale of the Company" will mean any transaction or series of related transactions (i) the result of which is that any "person" (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")), other than KRG Capital Fund I, L.P., KRG Capital Fund I (PA), L.P., or KRG Capital Fund I (FF), L.P.
(collectively the "Fund"), KRG, any institutions, individuals or entities that, upon invitation or by contractual right, co-invest in MDM with the Fund or KRG (the "Invited Parties" and,
together with KRG and the Fund, the "KRG Investing Parties"), or persons controlling, controlled by or under common control with the KRG Investing Parties, becomes the "beneficial owner" (as defined
in Rule 13d-3 under the Exchange Act), of more than 50% of the issued and outstanding Voting Stock (as defined below) of MDM, (ii) that results in the sale of all or
substantially all of the Company's assets, or (iii) that results in the consolidation or merger of MDM with or into another corporation or corporations or other entity in which MDM is not the
survivor (except any such corporation or entity controlled, directly or indirectly, by the Company). No termination of this Agreement, whether pursuant to this paragraph or otherwise, will affect the
Company's obligations with respect to earned and accrued fees, costs and expenses incurred by KRG in rendering services hereunder and not paid or reimbursed by the Company as of the effective date of
such termination. 

        As
used herein, the term "Voting Stock" will mean and include (i) any capital stock of any class of MDM ("Common Shares") which has the right to vote on all matters submitted to
holders of Common Shares, and (ii) any security, right, option, warrant or agreement convertible into or exercisable to obtain any Common Shares or capital stock of any class of MDM which has
the right to vote on all matters submitted to holders of Common Shares. 

        Any
reference herein to an approval or other action of the Board will mean a determination based on a finding by a majority vote of the members of the Board (excluding the votes of those
directors who are also principals of KRG) that the approval or other action is in the best interest of the Company. 

5.     INDEMNIFICATION.  

        The Company hereby agrees to indemnify and hold harmless KRG, its principals, officers, agents and employees against and from any and all loss, liability, suits,
claims, costs, damages and expenses (including attorneys' fees) arising from their performance under this Agreement, except as a result of their gross negligence or willful misconduct that results in
a material adverse effect on the Company's business operations or financial results. 

6.     KRG AN INDEPENDENT CONTRACTOR.  

        Each of KRG and the Company hereby agree that KRG will perform services hereunder as an independent contractor, retaining control over and responsibility for its
own operations and personnel. Neither KRG nor its principals, officers or employees will be considered employees or agents of the Company as a result of this Agreement, nor will any of them have
authority to contract in the name of or bind the Company, except as expressly agreed to in writing by the Company; provided, however, if any principal
of KRG is serving as an officer or director of the Company, such person will have all authority as an officer or director of the Company to contract in the name of or otherwise bind the Company,
notwithstanding any other provision of this Agreement. 

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7.     CONFIDENTIAL INFORMATION.  

        KRG acknowledges that the information, observations and data obtained by it, its principals, agents and employees during the course of KRG's performance under
this Agreement concerning the business plans, financial data and business relations of the Company (the "Confidential Data") are the Company's valuable, special and unique assets. KRG therefore agrees
that it will not, nor will it permit any of its principals, agents or employees, to disclose to any unauthorized person any of the Confidential Data obtained by KRG during the course of KRG's
performance under this Agreement without the Company's prior written consent, unless and to the extent that (i) the Confidential Data becomes generally known to and available for use by the
public otherwise than as a result of KRG's acts or omissions to act, (ii) such disclosure is required by any statute, rule, regulation or law or any judicial or administrative body having
jurisdiction, or (iii) such disclosure is made in the course of KRG's performance of its duties under this Agreement to existing or potential lenders or investors in the Company, potential
acquirors or acquisition candidates of the Company or other third parties
performing or proposing to provide services to the Company who have a need to know such information. 

8.     NOTICES.  

        Any notice or report required or permitted to be given or made under this Agreement by one party to another will be deemed to have been duly given or made if
personally delivered, delivered by reputable overnight courier, sent by telecopy, or, if mailed, when mailed by registered or certified mail, postage prepaid, to the other party at the following
addresses (or at such other address as will be given in writing by one party to the other): 

        If
to KRG: 

KRG
Capital Partners, LLC

1515 Arapahoe Street

Tower One, Suite 1500

Denver, Colorado 80202

Attention: Mark M. King, Managing Director

                  and

                  Bruce L. Rogers, Managing Director 

        If
to the Company: 

Medical
Device Manufacturing, Inc.

5000 Independence Street

Arvada, Colorado 80002

Attention: Eric Pollock, Vice President 

9.     ENTIRE AGREEMENT; MODIFICATION.  

        This Agreement (i) contains the complete and entire understanding and agreement of KRG and the Company with respect to the subject matter hereof,
(ii) supersedes all prior and contemporaneous understandings, conditions and agreements, oral or written, express or implied, respecting the engagement of KRG in connection with the subject
matter hereof, and (iii) may not be modified except by an instrument in writing executed by each of KRG and the Company. 

10.   WAIVER OF BREACH.  

        The waiver by any party of a breach of any provision of this Agreement by any other party will not operate or be construed as a waiver of any subsequent breach of
that provision or any other provision thereby. 

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11.   ASSIGNMENT.  

        Neither KRG nor the Company may assign their respective rights or obligations under this Agreement without the express written consent of all other parties. 

12.   GOVERNING LAW.  

        This Agreement will be deemed to be a contract made under, and is to be governed and construed in the accordance with, the internal laws of the State of Colorado,
without regard to conflict of law principles. 

*
* * 

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        IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date above written. 

	 	 	KRG CAPITAL PARTNERS, LLC
	

 	
 	

By:	

/s/  CHARLES R. GWIRTSMAN      

	 	 	Name:	Charles R. Gwirtsman
	 	 	Title:	Managing Director
	

 	
 	
MEDICAL DEVICE MANUFACTURING, INC.
	

 	
 	

By:	

/s/  ERIC POLLOCK      

	 	 	Name:	Eric Pollock
	 	 	Title:	Chief Executive Officer
	

 	
 	
G&D, INC. d/b/a STAR GUIDE CORPORATION
	

 	
 	

By:	

/s/  ERIC POLLOCK      

	 	 	Name:	Eric Pollock
	 	 	Title:	Vice President

 
 

FIRST AMENDMENT TO
  MANAGEMENT AGREEMENT    
    

        This FIRST AMENDMENT TO MANAGEMENT AGREEMENT, (this "Amendment"), dated as of May 31, 2000, is entered into by and among KRG Capital Partners, LLC, a
Delaware limited liability company ("KRG"), MDMI Holdings, Inc., a Colorado corporation ("Holdings"), Medical Device Manufacturing, Inc. d/b/a Rivo Technologies, a Colorado corporation
and wholly-owned subsidiary of Holdings ("Rivo" and, together with Holdings, the "Company"), and G&D, Inc. d/b/a Star Guide Corporation, a Colorado corporation ("Star Guide"). 

 
 

RECITALS    
    

        A.    Rivo,
KRG, Star Guide are parties to that certain Management Agreement dated July 6, 1999 (the "Agreement"). 

        B.    Rivo,
KRG and Star Guide wish to amend the Agreement to accommodate and reflect the current corporate structure of Holdings, Rivo and Rivo's direct and indirect
subsidiaries and to reflect the expansion of the management consulting services provided by KRG as a result of the acquisitions by Rivo of Noble-Met, Ltd., a Virginia corporation,
Medical Engineering Resources, a Minnesota corporation, and UTI Corporation, a Pennsylvania corporation. 

        C.    Unless
otherwise amended herein, capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement. 

 
 

AGREEMENT    
    

        NOW THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto amend the Agreement as follows: 

        1.     Star
Guide's obligations under the Agreement are hereby assigned to Rivo and Star Guide shall be released form its obligations pursuant to the Agreement. 

        2.     The
first sentence of Section 3(a) of the Agreement shall be amended in its entirety to read as follows: 

"(a)
The Company hereby agrees to pay KRG, as compensation for service to be rendered by KRG hereunder, an aggregate fee equal to $500,000 per year (the "Base Fee"). 

        3.     The
second sentence of Section 3(a) of the Agreement shall be deleted in its entirety. 

        4.     Hereafter,
notices to the Company as set forth Section 8 of the Agreement shall be sent to the following: 

Medical
Device Manufacturing, Inc.

200 West 7th Avenue

Collegeville, PA 19426

Attn: A. D. Freed 

        5.     KRG
hereby acknowledges the restrictions on the Company's ability to pay the fees provided for under the Agreement, as amended hereby, contained in the definition of
"Restricted Payment" and Section 10.9 of the Credit Agreement dated as of May 31, 2000 by and among the Company the Lenders party thereto,
Bank of America, N. A., as agent for the Lenders, Fleet National Bank, as Syndication Agent, and Dresdner Bank AG, New York Branch and Grand Cayman Branch. 

        6.     Other
than the amendments and modifications specifically contained herein, the Agreement remains in full force and effect. 

[SIGNATURE
PAGE FOLLOWS] 

 
 

SIGNATURES  
    

        IN WITNESS WHEREOF, KRG, Holdings, Rivo and Star Guide have caused this Amendment to be signed by their respective officers thereunto duly authorized as of the
date first written above. 

	 	 	KRG CAPITAL PARTNERS, LLC
	

 	
 	

By:	
 	

/s/  BRUCE L. ROGERS      

	 	 	 	 	Name:	Bruce L. Rogers

	 	 	 	 	Title:	Managing Director

	

 	
 	
MDMI HOLDINGS, INC.
	

 	
 	

By:	
 	

/s/  STEVEN D. NEUMANN      

	 	 	 	 	Name:	Steven D. Neumann

	 	 	 	 	Title:	Vice President

	

 	
 	
MEDICAL DEVICE MANUFACTURING, INC.
	

 	
 	

By:	
 	

/s/  STEVEN D. NEUMANN      

	 	 	 	 	Name:	Steven D. Neumann

	 	 	 	 	Title:	Vice President

	

 	
 	
G&D, INC.
	

 	
 	

By:	
 	

/s/  ERIC POLLOCK      

	 	 	 	 	Name:	Eric Pollock

	 	 	 	 	Title:	President

 
 

THIRD AMENDMENT TO
  MANAGEMENT AGREEMENT    
    

        This THIRD AMENDMENT TO MANAGEMENT AGREEMENT, (this "Third Amendment"), dated as of June 30, 2004, is entered into by and among KRG Capital Partners, LLC,
a Delaware limited liability company ("KRG"), UTI Corporation, a Maryland corporation ("UTI" or the "Company") and successor in interest to MDMI Holdings, Inc., a Colorado corporation, and
Medical Device Manufacturing, Inc., a Colorado corporation and wholly-owned subsidiary of UTI ("MDMI"). 

 
 

RECITALS    
    

        A. UTI (formerly known as Medical Device Manufacturing, Inc.), KRG, and G&D, Inc. d/b/a Star Guide Corporation, a Colorado corporation ("Star
Guide"), were parties to that certain Management Agreement dated July 6, 1999 ("Management Agreement"). Pursuant to the First Amendment To Management Agreement, dated May 31, 2000
("First Amendment"), MDMI Holdings, Inc., became a party to the Management Agreement and Star Guide's obligations were assigned to MDMI. Pursuant to the Second Amendment to Management
Agreement, dated Jaunuary 31, 2001 (the "Second Amendment"), certain amendments were made in connection with a pending initial public offering of the Company's stock, which was subsequently
terminated. The Management Agreement dated July 6, 1999, taken together with the First Amendment and the Second Amendment, are referred to herein as the "Agreement." 

        B.
MDMI, UTI and KRG wish to amend the Agreement so as to terminate and repeal all provisions of the Second Amendment, to extend the term of the Agreement, to provide for the
reimbursement of certain out-of-pocket expenses incurred by KRG in connection with its services, and to terminate all rights and obligations of MDMI under the Agreement. 

        C.
Unless otherwise amended herein, capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement. 

 
 

AGREEMENT    
    

        NOW THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto amend the Agreement as follows: 

        1.     All
amendments made to the Agreement pursuant to the terms and conditions of the Second Amendment are hereby terminated and repealed in their entirety and shall be given
no effect. 

        2.     The
first sentence of Section 4 of the Agreement shall be amended in its entirety to read as follows: 

        "The
term of the Agreement shall be in effect for five (5) years from June 30, 2004." 

        3.     The
following shall be inserted as Section 3(d) of the Agreement: 

        "(d)
In addition to the compensation to be paid pursuant to Sections 3(a), (b), and (c) above, promptly upon request by KRG from time to time, the Company shall reimburse KRG for
its out-of-pocket expenses incurred in connection with its services hereunder, including, without limitation, the fees and disbursements of its legal counsel, if any, and of
any other advisor retained by KRG, resulting from or arising out of this engagement." 

        4.     MDMI's
rights and obligations under this Agreement are hereby terminated as of the date hereof and are of no further force or effect. From the date hereof, all references
to "Company" in the Agreement shall be deemed to refer only to UTI. 

        5.     Other
than the amendments and modifications specifically contained herein, the Agreement remains unmodified and in full force and effect. 

[SIGNATURE
PAGE FOLLOWS] 

 
 

SIGNATURES  
    

        IN WITNESS WHEREOF, KRG, UTI and MDMI have caused this Third Amendment to be signed by their respective officers thereunto duly authorized as of the date first
written above. 

	 	 	KRG CAPITAL PARTNERS, LLC
	

 	
 	

By:	
 	

/s/  BRUCE L. ROGERS      

	 	 	 	 	Name:	Bruce L. Rogers

	 	 	 	 	Title:	Managing Director

	

 	
 	
UTI CORPORATION
	

 	
 	

By:	
 	

/s/  RON SPARKS      

	 	 	 	 	Name:	Ron Sparks

	 	 	 	 	Title:	President & CEO

	

 	
 	
MEDICAL DEVICE MANUFACTURING, INC.
	

 	
 	

By:	
 	

/s/  RON SPARKS      

	 	 	 	 	Name:	Ron Sparks

	 	 	 	 	Title:	President & CEO

[SIGNATURE PAGE TO THIRD AMENDMENT TO MANAGEMENT AGREEMENT]  

QuickLinks

Exhibit 10.9

MANAGEMENT AGREEMENT

BACKGROUND

TERMS

FIRST AMENDMENT TO MANAGEMENT AGREEMENT

RECITALS

AGREEMENT

SIGNATURES

THIRD AMENDMENT TO MANAGEMENT AGREEMENT

RECITALS

AGREEMENT

SIGNATURESQuickLinks
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Exhibit 10.10    
    

 
  DLJ Merchant Banking III, Inc.
  Eleven Madison Avenue
  New York, NY 10010    
    
    June 30, 2004    

PRIVATE
AND CONFIDENTIAL 

UTI
Corporation

200 West 7th Avenue

Collegeville, PA 19426-0992

Attention: Ron Sparks, President & CEO

Gentlemen: 

        This
letter agreement (this "Agreement") confirms our understanding that UTI Corporation, a Maryland corporation (the
"Company" or "you"), have engaged DLJ Merchant Banking III, Inc. and its affiliates, successors
and assigns, as appropriate ("DLJMB" or "we"), to act as its financial advisor, and DLJMB has accepted
such engagement, with respect to the matters described in Section 1 below. 

	1.
	Appointment

        The
Company hereby appoints DLJMB as a financial advisor with respect to the following services to the extent appropriate and requested by you: (i) assisting you in analyzing the
Company's operations and its historical performance; (ii) assisting you in analyzing the Company's future prospects; (iii) assisting you with respect to the acquisition (the
"Acquisition") of MedSource Technologies, Inc., a Delaware corporation, and future proposals for tender offers, acquisitions, sales, mergers,
financings, exchange offers, recapitalizations, restructurings or other similar transactions and (iv) assisting you in preparing a strategic plan for the Company. 

	2.
	Term and Termination

        (a)   The
term of this Agreement shall commence upon the execution of this Agreement and continue for a period of five (5) years (the
"Engagement Period"). The Engagement Period will automatically renew for successive one (1) year terms, unless either party delivers to the other
party a written termination notice at least thirty (30) business days prior to any scheduled renewal date. 

        (b)   This
Agreement may be terminated by DLJMB at any time upon written notice to the Company. Upon any termination or expiration of this Agreement, DLJMB will be entitled to
prompt payment of all fees earned or owed but unpaid as of the date of such termination, including, but not limited to (i) the Acquisition Fee (as hereinafter defined), (ii) the Annual
Fee (as hereinafter defined), (iii) if applicable, the Subsequent Transaction Fee (as hereinafter defined), (iv) if applicable, the Sale Fee (as hereinafter defined) and
(v) reimbursement of all out-of-pocket expenses as described below. No termination of DLJMB's engagement hereunder shall affect (i) the Company's obligations
under Annex A hereto or (ii) the provisions of Sections 3, 4, 5, 6 or 7 of this Agreement. 

        (c)   In
the event of (i) a Sale (as hereinafter defined) of the Company or (ii) an initial public offering of shares of the capital stock of the Company (either
event, a "Triggering Event"), this Agreement will be automatically renewed, without further action by either party, for an additional five
(5) year term unless the board of directors of the Company (the "Board"), not later than sixty (60) days after the closing of such
Triggering Event, gives DLJMB written notice of its desire not to renew this Agreement for such term (a "Board Termination"). Upon a Board Termination,
the Company shall pay DLJMB an accelerated cash payment amount equal to the Annual Fee (as then in effect) for a period of time that is the longer of (i) two and one-half
(21/2) years, or (ii) the remainder of the term of this Agreement. As used herein, the term "Sale" will mean, with respect to the
Company, any transaction or series of related transactions (i) the result of which is that any "person" (as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of
1934, as amended), other than DLJMB or 

 

its
affiliates, KRG/CMS L.P. ("KRG/CMS"), KRG Capital Partners, L.L.C., any institutions, individuals or entities that, upon invitation or by contractual right, co-invest in the Company
with KRG/CMS or KRG (together with KRG/CMS and KRG, the "KRG Investing Parties"), or affiliates of the KRG Investing Parties, becomes the "beneficial owner" (as defined in
Rule 13d-3 under the Securities Exchange Act of 1934) of more than 50% of the issued and outstanding voting stock (which shall include any security, right, option, warrant or
agreement convertible into or exerciseable to obtain any common shares or capital stock) of the Company, (ii) that results in the sale of all or substantially all of the Company's assets or
(iii) that results in the consolidation or merger of the Company with or into another corporation or corporations or other entity in which the Company is not the survivor. 

        (d)   No
termination of this Agreement will affect the Company's obligations with respect to earned and accrued fees, costs and expenses incurred by DLJMB and not paid or
reimbursed by the Company as of the effective date of termination. 

3.    Fees and Expenses As compensation to DLJMB for the services to be provided hereunder, the Company agrees to pay DLJMB as follows: 

        (a)   In
connection with the Acquisition, a one-time cash fee of $1,797,000 payable at the closing of the Acquisition (the "Acquisition
Fee"). 

        (b)   In
connection with the services contemplated by clause (iii) of Section 1, an annual financial advisory retainer of $400,000 (the
"Annual Fee"), payable in twelve (12) equal monthly installments prior to the fifth day of each calendar month beginning on the date hereof and
continuing through the date of termination or expiration of this Agreement (if payable upon termination or expiration of this Agreement, such final installment to be paid on the effective date of such
termination or expiration and prorated for any final period consisting of less than thirty (30) days). 

        (c)   In
connection with the consummation of any acquisition of a medical supply manufacturing business or any other acquisition in furtherance of the Company's business
strategy, which transaction closes after the date hereof (a "Subsequent Transaction"), the Company shall pay to DLJMB, at the closing of any such
Subsequent Transaction, a cash fee equal to the greater of (i) $75,000 and (ii) one percent (1%) of the Transaction Value of such Subsequent Transaction (the
"Subsequent Transaction Fee"). As used herein, the term "Transaction Value" means the aggregate of all
cash and non-cash consideration paid to the sellers of the company or business being acquired and the value of all interest-bearing debt assumed by the Company. Any non-cash
consideration will be valued at fair market value, and the value of any equity securities issued will be fair market value on the date of issuance, assuming such equity securities are fully vested on
such date. 

        (d)   In
the event of a Sale, the Company shall pay to DLJMB, at the closing of any such Sale, a cash fee equal to: (i) one percent (1%) of the Transaction Value of
such Sale, if the Company does not retain an investment banking firm to act on its behalf in connection with the transaction and (ii) one-half of one percent (.5%) of the
Transaction Value if the Company does retain an investment banking firm, provided that in no event shall such fee exceed $750,000 unless approved in advance by the Board (the
"Sale Fee"). 

        (e)   In
addition to the compensation to be paid pursuant to Sections 3(a), (b), (c) and (d) above, promptly upon request by DLJMB from time to time, the Company
shall reimburse DLJMB for its out-of-pocket expenses incurred in connection with its services hereunder, including, without limitation, the fees and disbursements of its legal
counsel, if any, and of any other advisor retained by DLJMB, resulting from or arising out of this engagement. 

        4.    Information.    The Company shall furnish and make available to DLJMB all financial and other information
concerning the Company as DLJMB deems reasonably appropriate in connection with the performance of the services contemplated by this engagement and, in connection therewith, will provide DLJMB with
reasonable access to the Company's officers, directors, employees, agents, 

2

 

accountants,
counsel and other representatives; provided such access does not interfere with ongoing operations of the Company. The Company acknowledges and confirms that DLJMB (i) will rely
solely on such information and information that is available from public sources in the performance of the services contemplated by this engagement without assuming any responsibility for independent
investigation or verification thereof, (ii) assumes no responsibility for the accuracy or completeness of such information or any other information regarding the Company and (iii) will
not make any appraisal of any assets of the Company. 

        5.    Indemnification As DLJMB will be acting on behalf of the Company in connection with its engagement hereunder and as
further consideration for DLJMB's services hereunder, the Company and DLJMB agree to the indemnity provisions and other matters set forth in Annex A
hereto, which Annex A is incorporated herein by reference and is an integral part hereof. The terms and provisions of Annex
A shall survive any termination or expiration of this Agreement. 

        6.    Confidentiality.    Except as may be required by law, no advice rendered by DLJMB, whether formal or informal,
may be disclosed, in whole or in part, to any third party (other than the Company's agents or representatives) or summarized, excerpted from or otherwise referred to without DLJMB's prior written
consent. To the extent consistent with legal requirements, all information given to one party of this Agreement (the "Recipient Party") by the other
party (the "Providing Party"), including, without limitation, this Agreement, unless publicly available or otherwise available to the Recipient Party
without restriction or breach of any confidentiality agreement, will be held by the Recipient Party in confidence and will not, without the Providing Party's prior approval, be disclosed to anyone
other than the Recipient's agents and advisors who require such information to perform services for the Providing Party as contemplated by this Agreement (and who agree to use such information only in
connection
with such services) or used by such person for any purpose other than those contemplated by this Agreement. Each party hereto shall be responsible for violations of its respective agents and advisors
of the obligations set forth in this Section 6. Notwithstanding anything to the contrary set forth herein or in any other agreement to which the parties hereto are parties or by which they are
bound, the obligations of confidentiality contained herein and therein, as they relate to the transactions contemplated by this Agreement, shall not apply to the tax structure or tax treatment of the
services to be provided hereunder, and each party hereto (and any employee, representative, or agent of any party hereto) may disclose to any and all persons, without limitation of any kind, the tax
structure and tax treatment of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analysis) that are provided to such party relating to such tax
treatment and tax structure. 

        7.    Miscellaneous

        (a)   This
Agreement and Annex A hereto contain the entire understanding of the parties with respect to the subject matter
hereof and supersede and take precedence over all prior agreements or understandings, whether oral or written, between DLJMB and the Company. 

        (b)   The
Company has all requisite power and authority to enter into this Agreement and the transactions contemplated hereby. This Agreement has been duly and validly
authorized by all necessary action on the part of the Company and has been duly executed and delivered by the Company and constitutes a legal, valid and binding agreement of the Company, enforceable
in accordance with its terms. 

        (c)   In
connection with this engagement, DLJMB is acting as an independent contractor and not in any other capacity, with duties owing solely to the Company. 

        (d)   This
Agreement and all provisions contained herein shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted
assigns; provided, however, neither this Agreement nor any of the rights, interests or obligations
hereunder shall be assigned (other than with respect to the rights and obligations of DLJMB, which may be assigned to any one or more 

3

 

of
its principals or affiliates) by any of the parties without the prior written consent of the other parties. 

        (e)   This
Agreement may not be amended except by an instrument in writing signed by each party hereto; provided however, that in the event of any amendment to, or an
adjustment to any amount payable under, the Management Agreement dated July 6, 1999 and amended as of May 31, 2000, by and among KRG Capital Partners, L.L.C. and the Company, an
amendment or proportionate adjustment, as the case may be, shall be made hereunder, including without limitation, to the amount payable to DLJMB with respect to any Annual Fee, Subsequent Transaction
Fee or Sale Fee. The party entitled to the benefit of a provision hereof may waive compliance with such provision only in a written instrument signed by such party. 

        (f)    The
validity and interpretation of this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to
agreements made and to be fully performed therein (excluding the conflicts of law rules). All actions and proceedings arising out of or relating to this Agreement shall be heard and determined
exclusively in any New York state or federal court sitting in the Borough of Manhattan in the City of New York, to whose jurisdiction the Company hereby irrevocably submits. The Company hereby
irrevocably waives any defense or objection to the New York forum designated above. Each of DLJMB and the Company, to the extent permitted by law, on behalf of its respective equity holders and
creditors, hereby knowingly, voluntarily and irrevocably waives all right to trial by jury in any action, suit, proceeding or counterclaim (whether based upon contract, tort or otherwise) related to
or arising out of the engagement of DLJMB pursuant to, or the performance by DLJMB of the services contemplated by, this Agreement. 

        (g)   The
benefits of this Agreement shall inure to the parties hereto, their respective successors and assigns, and to the Indemnified Persons (as defined in Annex A attached
hereto) hereunder and their respective successors and assigns and representatives, and the obligations and liabilities assumed in this Agreement by the parties hereto shall be binding upon their
respective successors and assigns. 

        (h)   Please
note that DLJMB, together with its affiliates, is a full service securities firm with affiliates engaged in securities trading and brokerage activities, as well
as providing investment banking and financial advisory services. In the ordinary course of our trading and brokerage activities, DLJMB or its affiliates may at any time hold long or short positions,
and may trade or otherwise effect transactions, for its or their accounts or for the accounts of customers, in debt or equity securities of the Company or other entities involved in any transaction.
Nothing herein shall, in itself, prevent DLJMB or its affiliates from engaging in future transactions involving companies in a similar industry to the Company, provided the Company's confidential
information is not used in connection with such engagement. 

        (i)    The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement or  Annex A hereto, which shall remain in full
force and effect. 

4

 

We
are delighted to accept this engagement and look forward to working with you pursuant to the terms of this Agreement. If this Agreement correctly sets forth your understanding of the agreement
between DLJMB and the Company with respect to this engagement, please sign and return to us the enclosed copy of this Agreement. This Agreement signed by you shall constitute a binding agreement
between us as of the date first above written. 

	 	 	Very truly yours,
	

 	
 	

DLJ MERCHANT BANKING III, INC.
	

 	
 	

By:	

/s/  DANIEL PULVER      
 Name: Daniel Pulver

Title: Director

ACCEPTED
AND AGREED TO AS OF THE DATE FIRST ABOVE WRITTEN: 

UTI
CORPORATION 

	By:	/s/  RON SPARKS      
 Name: Ron Sparks

Title: President & CEO

5

ANNEX A  

This
Annex A is a part of and is incorporated into that certain letter agreement (together, the
"Agreement") dated June 30, 2004, by and between UTI Corporation, a Maryland corporation (hereinafter referred to as the
"Company") and DLJ Merchant Banking III, Inc. ("DLJMB"). 

In
further consideration of the engagement by the Company of DLJMB to act in the capacities set forth in the Agreement, in the event that DLJMB or any of its affiliates, the respective directors,
officers, partners, agents or employees of DLJMB or any of its affiliates, or any other person controlling DLJMB or any of its affiliates (collectively, "Indemnified
Persons") becomes involved in any capacity in any action, claim, suit, investigation or proceeding, actual or threatened, brought by or against any person, including
stockholders of the Company, in connection with or as a result of the engagement or any matter referred to in the engagement, the Company will reimburse such Indemnified Person for its reasonable and
customary legal and other expenses (including, without limitation, the costs and expenses incurred in connection with investigating, preparing for and responding to third party subpoenas or enforcing
this agreement or any related engagement agreement) incurred in connection therewith as such expenses are incurred. The Company will also indemnify and hold harmless any Indemnified Person from and
against, and the Company agrees that no Indemnified Person shall have any liability to the Company or its owners, parents, affiliates, security holders or creditors for, any losses, claims, damages or
liabilities (including actions or proceedings in respect thereof) (collectively, "Losses") related to or arising out of the engagement or DLJMB's
performance thereof, except that this provision shall not apply to any Losses that are finally determined by a court or arbitral tribunal to have resulted primarily from the bad faith or gross
negligence of DLJMB. 

If
such indemnification is for any reason not available or insufficient to hold an Indemnified Person harmless, the Company agrees to contribute to the Losses involved in such proportion as is
appropriate to reflect the relative benefits received (or anticipated to be received) by the Company, on the one hand, and by DLJMB, on the other hand, with respect to the engagement or, if such
allocation is determined by a court or arbitral tribunal to be unavailable, in such proportion as is appropriate to reflect other equitable considerations such as the relative fault of the Company, on
the one hand, and of DLJMB, on the other hand; provided, however, that, to the extent permitted by applicable law, the Indemnified Persons shall not be
responsible for amounts which in the aggregate are in excess of the amount of all fees actually received by DLJMB from the Company in connection with the engagement. Relative benefits to the Company,
on the one hand, and to DLJMB, on the other hand, with respect to the engagement shall be deemed to be in the same proportion as (i) the total value received or proposed to be received by the
Company in connection with the transactions contemplated by this Agreement, whether or not consummated, bears to (ii) all fees actually received by DLJMB in connection with the engagement.
Relative fault shall be determined, in the case of Losses arising out of or based on any untrue statement or any alleged untrue statement of a material fact or omission or alleged omission to state a
material fact, by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company to DLJMB and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue statement or omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act of 1933, as amended) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

Upon
receipt by an Indemnified Person of actual notice of any pending or threatened action claim, suit, investigation or proceeding (an "Action")
against such Indemnified Person with respect to which indemnity may be sought under this Agreement, such Indemnified Person shall promptly notify the Company in writing; provided that failure to so
notify the Company shall not relieve the Company from any liability which the Company may have on account of this indemnity or otherwise, except to the extent the Company shall have been materially
prejudiced by such failure. The Company shall, if requested by DLJMB, assume the defense of any such Action including the employment of counsel reasonably satisfactory to DLJMB. Any Indemnified Person
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such 

counsel
shall be at the expense of such Indemnified Person, unless: (i) the Company has failed promptly to assume the defense and employ counsel or (ii) the named parties to any such
Action (including any impleaded parties) include such Indemnified Person and the Company, and such Indemnified Person shall have been advised by counsel that there may be one or more legal defenses
available to it which are different from or in addition to those available to the Company; provided that the Company shall not in such event be responsible hereunder for the fees and expenses of more
than one firm of separate counsel in connection with any Action in the same jurisdiction, in addition to any local counsel. The Company will not, without DLJMB's prior written consent, settle,
compromise, or consent to the entry of any judgment in or otherwise seek to terminate any Action in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is a
party therein) unless the Company has given DLJMB reasonable prior written notice thereof and such settlement, compromise, consent or termination includes an unconditional release of each Indemnified
Person from any liabilities arising out of such Action. The Company will not permit any such settlement, compromise, consent or termination to include a statement as to, or an admission of, fault,
culpability or a failure to act by or on behalf of an Indemnified Person, without such Indemnified Person's prior written consent. No Indemnified Person seeking indemnification, reimbursement or
contribution under this agreement will, without the Company's prior written consent, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any Action referred to
herein. 

Prior
to entering into any agreement or arrangement with respect to, or effecting, any merger, statutory exchange or other business combination or proposed sale or exchange, dividend or other
distribution or liquidation of all or a significant portion of its assets in one or a series of transactions or any significant recapitalization or reclassification of its outstanding securities that
does not directly or indirectly provide for the assumption of the obligations of the Company set forth herein, the Company will promptly notify DLJMB in writing thereof and, if requested by DLJMB,
shall arrange in connection therewith alternative means of providing for the obligations of the Company set forth herein, including the assumption of such obligations by another party, insurance,
surety bonds or the creation of an escrow, in each case in an amount and on terms and conditions satisfactory to DLJMB. 

The
Company's obligations hereunder shall be in addition to any rights that any Indemnified Person may have at common law or otherwise. The Company acknowledges that in connection with the engagement
DLJMB is acting as an independent contractor and not in any other capacity with duties owing solely to the Company. This agreement and any other agreements relating to the engagement shall be governed
by and construed in accordance with the laws of the State of New York, applicable to contracts made and to be performed therein and, in connection therewith, the parties hereto consent to the
exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County or the United States District Court for the Southern District of New York and the respective appellate
courts thereof. Notwithstanding the foregoing, solely for the purpose of enforcing the Company's obligations hereunder, the Company consents to personal jurisdiction, service and venue in any court
proceeding in which any claim subject to this Agreement is brought by or against any Indemnified Person. DLJMB HEREBY AGREES, AND THE COMPANY HEREBY AGREES ON ITS OWN BEHALF AND, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS SECURITY HOLDERS, TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION ARISING OUT OF THE ENGAGEMENT, DLJMB'S
PERFORMANCE THEREOF OR THIS AGREEMENT. 

The
provisions of this Agreement shall apply to the services provided to the Company by DLJMB (including related activities prior to the date hereof) and any modification thereof and shall remain in
full force and effect regardless of the completion or termination of the engagement. If any term, provision, covenant or restriction herein is held by a court of competent jurisdiction to be invalid,
void or unenforceable or against public policy, the remainder of the terms, provisions and restrictions contained herein shall remain in full force and effect and shall in no way be affected, impaired
or invalidated. 

QuickLinks

Exhibit 10.10

DLJ Merchant Banking III, Inc. Eleven Madison Avenue New York, NY 10010 June 30, 2004

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