Document:

EXHIBIT 10.3

 

TD HOLDING CORPORATION

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT (this “Agreement”),
dated as of July 22, 2003, among the institutional investors whose names
and addresses are listed from time to time on Schedule I hereto (collectively,
the “Institutional Investors”), those employees of TransDigm Inc. and
certain of its subsidiaries whose names and addresses are listed on Schedule II
hereto (the “Management Investors” and together with the Institutional
Investors, the “Investors”), and TD Holding Corporation, a Delaware
corporation (the “Company”).

 

R E C I T A L S

 

WHEREAS, on June 6, 2003, TD Acquisition
Corporation, a Delaware corporation and a wholly-owned subsidiary of the
Company (“TD Acquisition”), entered into an Agreement and Plan of Merger
(the “Merger Agreement”) with TransDigm Holding Company, a Delaware
corporation (“TransDigm Holding”), pursuant to which TD Acquisition
shall be merged with and into TransDigm Holding, with TransDigm Holding as the
surviving corporation (the “Merger”);

 

WHEREAS, in connection with the transactions
contemplated by the Merger Agreement, each Management Investor has entered into
a letter agreement (collectively, the “Roll-Over Agreements”) with
Warburg Pincus Private Equity VIII, L.P. (“Warburg Pincus”) pursuant to
which each such Management Investor has agreed that certain options (the “Pre-Merger
Options”) to purchase shares of common stock, par value $0.01 per share, of
TransDigm Holding owned by such Management Investor prior to the Effective Time
(as such term is defined in the Merger Agreement) shall not be cancelled in
connection with the Merger but rather, at the Effective Time, such Management
Investor’s Pre-Merger Options shall be converted partially into a fully vested
option to purchase shares of common stock, par value $0.01 per share, of the
Company (the “Common Stock”; the fully vested options to purchase shares
of Common Stock to be granted to each of the Management Investors pursuant to
the terms of the Roll-Over Agreements are hereinafter collectively referred to
as the “Roll-Over Options”);

 

WHEREAS, in connection with the transactions
contemplated by the Merger Agreement, the Institutional Investors have entered
into a Subscription and Note Purchase Agreement (the “Subscription Agreement”)
with the Company pursuant to which the Company has agreed to sell and each
Institutional Investor has agreed to purchase from the Company, among other
things, the number of shares of Common Stock set forth opposite the name of
such Institutional Investor on Schedule I thereto;

 

WHEREAS, the Company has agreed, as a condition
precedent to the Investors’ obligations under the Roll-Over Agreements or the
Subscription Agreement, as the case may be, to grant the Investors certain
registration rights; and

 

 

WHEREAS, the Company and the Investors desire to
define the registration rights of the Investors on the terms and subject to the
conditions herein set forth.

 

NOW, THEREFORE, in consideration of the foregoing
premises and for other good and valuable consideration, the parties hereby
agree as follows:

 

SECTION 1.  DEFINITIONS.

 

As used in this Agreement, the following terms have
the respective meaning set forth below:

 

Commission:  shall mean the Securities and Exchange
Commission or any other federal agency at the time administering the Securities
Act;

 

Exchange Act:  shall mean the Securities Exchange Act of
1934, as amended;

 

Holder:  shall mean any holder of Registrable Securities;

 

Initial Public Offering:  shall mean the initial public offering of
shares of Common Stock pursuant to a registration under the Securities Act;

 

Person:  shall mean an individual, partnership, joint-stock company,
corporation, trust or unincorporated organization, and a government or agency
or political subdivision thereof;

 

Register, Registered and Registration:  shall mean a registration effected by
preparing and filing a registration statement in compliance with the Securities
Act (and any post-effective amendments filed or required to be filed) and the
declaration or ordering of effectiveness of such registration statement;

 

Registrable Securities:  shall mean (A) the shares of Common Stock
acquired by the Institutional Investors pursuant to the terms of the
Subscription Agreement, (B) any additional shares of Common Stock acquired by
the Institutional Investors after the date hereof, (C) the shares of Common
Stock issuable to the Management Investors upon exercise of the Roll-Over
Options and (D) any stock of the Company issued as a dividend or other distribution
with respect to, or in exchange for or in replacement of, the shares of Common
Stock referred to in clauses (A), (B) or (C) above;

 

Registration Expenses:  shall mean all expenses incurred by the
Company in compliance with Section 2(a), (b) and (c) hereof, including,
without limitation, all registration and filing fees, printing expenses, fees
and disbursements of counsel for the Company, all of the reasonable fees and
expenses of one counsel for all of the Holders, blue sky fees and expenses and any
expenses associated with any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the
Company, which shall be paid in any event by the Company);

 

Securities Act:  shall mean the Securities Act of 1933, as
amended; and

 

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Selling Expenses:  shall mean all underwriting discounts and
selling commissions applicable to the sale of Registrable Securities and all
fees and disbursements of counsel for each of the Holders other than the
reasonable fees and expenses of one counsel for all of the Holders.

 

SECTION 2.  REGISTRATION RIGHTS.

 

(a)                                         Requested
Registration.

 

(i)                                           Request
for Registration.  If the Company
shall receive from Warburg Pincus, at any time, a written request that the
Company effect any registration with respect to all or a part of the
Registrable Securities, the Company will:

 

(1)                                       promptly
give written notice of the proposed registration, qualification or compliance
to all other Holders; and

 

(2)                                       as
soon as practicable, use its diligent best efforts to effect such registration
(including, without limitation, the execution of an undertaking to file
post-effective amendments, appropriate qualification under applicable blue sky
or other state securities laws and appropriate compliance with applicable
regulations issued under the Securities Act) as may be so requested and as
would permit or facilitate the sale and distribution of all or such portion of
such Registrable Securities as are specified in such request, together with all
or such portion of the Registrable Securities of any Holder or Holders joining
in such request as are specified in a written request received by the Company
within ten (10) business days after written notice from the Company is given
under Section 2(a)(i)(1) above; provided that the Company shall not
be obligated to effect, or take any action to effect, any such registration
pursuant to this Section 2(a):

 

(A)                                     In
any particular jurisdiction in which the Company would be required to execute a
general consent to service of process in effecting such registration,
qualification or compliance, unless the Company is already subject to service
in such jurisdiction and except as may be required by the Securities Act or applicable
rules or regulations thereunder;

 

(B)                                     After
the Company has effected two (2) such registrations pursuant to this
Section 2(a) and such registrations have been declared or ordered
effective and the sales of such Registrable Securities shall have closed;

 

(C)                                     If
the Registrable Securities requested by all Holders to be registered pursuant
to such request do not have an anticipated aggregate public offering price
(before deduction of Selling Expenses) of at least $15,000,000 (or $25,000,000
if such requested registration is the Initial Public Offering); or

 

(D)                                    During
the period starting with the date sixty (60) days prior to the Company’s good
faith estimate of the date of filing of, and ending on the date six (6) months
immediately following the effective date of, any registration statement
pertaining to securities of the Company (other than a 

 

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registration of
securities in a Rule 145 transaction, with respect to an employee benefit plan
or with respect to the Company’s first registered public offering of its
stock), provided that the Company is actively employing in good faith all
reasonable efforts to cause such registration statement to become effective; provided,
however, that the Company may only delay an offering pursuant to this
Section 2(a)(i)(2)(D) for a period of not more than sixty (60) days, if a
filing of any other registration statement is not made within that period and
the Company may only exercise this right once in any twelve (12) month period.

 

The
registration statement filed pursuant to the request of Warburg Pincus may,
subject to the provisions of Section 2(a)(ii) below, include other
securities of the Company which are held by Persons who, by virtue of
agreements with the Company, are entitled to include their securities in any
such registration (“Other Stockholders”).  In the event any Holder requests a registration pursuant to this
Section 2(a) in connection with a distribution of Registrable Securities
to its partners, the registration shall provide for the resale by such
partners, if requested by such Holder.

 

The
registration rights set forth in this Section 2 may be assigned, in whole
or in part, to any transferee of Registrable Securities (who shall be bound by
all obligations of this Agreement).

 

(ii)                                      Underwriting.  If Warburg Pincus intends to distribute the
Registrable Securities covered by its request by means of an underwriting, it
shall so advise the Company as a part of its request made pursuant to
Section 2(a).  If Other
Stockholders request inclusion in any such registration, the Holders shall
offer to include the securities of such Other Stockholders in the underwriting
and may condition such offer on their acceptance of the further applicable
provisions of this Section 2.  The
Holders whose shares of Common Stock are to be included in such registration
and the Company shall (together with all Other Stockholders proposing to
distribute their securities through such underwriting) enter into an
underwriting agreement in customary form with the representative of the
underwriter or underwriters selected for such underwriting by Warburg Pincus
and reasonably acceptable to the Company. 
Notwithstanding any other provision of this Section 2(a), if the
representative advises the Holders in writing that marketing factors require a
limitation on the number of shares of Common Stock to be underwritten, the
securities of the Company held by Other Stockholders shall be excluded from
such registration to the extent so required by such limitation.  If, after the exclusion of such shares,
further reductions are still required, the number of shares included in the
registration by each Holder shall be reduced on a pro rata basis (based on the
number of shares requested to be registered by such Holder), by such minimum
number of shares as is necessary to comply with such request.  No Registrable Securities or any other
securities excluded from the underwriting by reason of the underwriter’s
marketing limitation shall be included in such registration.  If any Holder who has requested inclusion in
such registration as provided above disapproves of the terms of the
underwriting, such Person may elect to withdraw therefrom by written notice to
the Company, the underwriter and Warburg Pincus.  The securities so withdrawn shall also be withdrawn from
registration.  If the underwriter has
not limited the number of Registrable Securities or other securities to be
underwritten, the Company and officers 

 

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and directors of the
Company (to the extent such persons are not otherwise Holders) may include its
or their securities for its or their own account in such registration if the
representative so agrees and if the number of Registrable Securities and other
securities which would otherwise have been included in such registration and
underwriting will not thereby be limited.

 

(b)                                        Company
Registration.

 

(i)                                           If
the Company shall determine to register any of its equity securities either for
its own account or for the account of Warburg Pincus, any Holder or any Other
Stockholder, other than a registration relating solely to employee benefit
plans, or a registration relating solely to a Commission Rule 145 transaction,
or a registration on any registration form which does not permit secondary
sales or does not include substantially the same information as would be
required to be included in a registration statement covering the sale of
Registrable Securities, the Company will:

 

(1)                                       promptly
give to each of the Holders a written notice thereof (which shall include a
list of the jurisdictions in which the Company intends to attempt to qualify
such securities under the applicable blue sky or other state securities laws);
and

 

(2)                                       include
in such registration (and any related qualification under blue sky laws or
other compliance), and in any underwriting involved therein, all the
Registrable Securities specified in a written request or requests, made by the
Holders within fifteen (15) days after receipt of the written notice from the
Company described in clause (1) above, except as set forth in
Section 2(b)(ii) below.  Such
written request may specify all or a part of the Holders’ Registrable
Securities.  In the event any Holder
requests inclusion in a registration pursuant to this Section 2(b) in
connection with a distribution of Registrable Securities to its partners, the
registration shall provide for the resale by such partners, if requested by
such Holder.

 

(ii)                                      Underwriting.  If the registration of which the Company
gives notice is for a registered public offering involving an underwriting, the
Company shall so advise each of the Holders as a part of the written notice
given pursuant to Section 2(b)(i)(1). 
In such event, the right of each of the Holders to include its
Registrable Securities in such registration pursuant to this Section 2(b)
shall be conditioned upon such Holders’ participation in such underwriting and
the inclusion of such Holders’ Registrable Securities in the underwriting to
the extent provided herein.  The Holders
whose Registrable Securities are to be included in such registration shall
(together with the Company and the Other Stockholders distributing their
securities through such underwriting) enter into an underwriting agreement in
customary form with the representative of the underwriter or underwriters
selected for underwriting by the Company. 
Notwithstanding any other provision of this Section 2(b), if the
representative determines that marketing factors require a limitation on the
number of shares to be underwritten, and (x) if such registration is the
Initial Public Offering, the representative may (subject to the allocation
priority set forth below) exclude from such registration and underwriting some
or all of the Registrable Securities which would otherwise be underwritten
pursuant hereto, and (y) if such registration is other than the Initial Public 

 

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Offering, the
representative may (subject to the allocation priority set forth below) limit
the number of Registrable Securities to be included in the registration and
underwriting to not less than twenty five percent (25%) of the shares included
therein (based on the number of shares). 
The Company shall so advise all holders of securities requesting
registration, and the number of shares of securities that are entitled to be
included in the registration and underwriting shall be allocated in the
following manner:  The securities of the
Company held by officers, directors and Other Stockholders of the Company
(other than Registrable Securities and other than securities held by holders
who by contractual right demanded such registration (“Demanding Holders”))
shall be excluded from such registration and underwriting to the extent required
by such limitation, and, if a limitation on the number of shares is still
required, the number of shares that may be included in the registration and
underwriting by each of the Holders and Demanding Holders shall be reduced, on
a pro rata basis (based on the number of shares held by such Holder or
Demanding Holder), by such minimum number of shares as is necessary to comply
with such limitation.  If any of the
Holders or any officer, director or Other Stockholder disapproves of the terms
of any such underwriting, he or it may elect to withdraw therefrom by written
notice to the Company and the underwriter. 
Any Registrable Securities or other securities excluded or withdrawn
from such underwriting shall be withdrawn from such registration.

 

(c)                                        Form
S-3.  Following the Initial Public
Offering, the Company shall use its best efforts to qualify for registration on
Form S-3 for secondary sales.  After the
Company has qualified for the use of Form S-3, Warburg Pincus shall have the
right to request three (3) registrations on Form S-3 (such requests shall be in
writing and shall state the number of shares of Registrable Securities to be
disposed of and the intended method of disposition of shares by Warburg
Pincus), provided, that the Company shall not be obligated to effect, or
take any action to effect, any such registration pursuant to this
Section 2(c):

 

(i)                                           Unless
Warburg Pincus and the other Holders who join in such registration pursuant to
the terms hereof propose to dispose of shares of Registrable Securities having
an aggregate price to the public (before deduction of Selling Expenses) of more
than $10,000,000;

 

(ii)                                      Within
180 days of the effective date of the most recent registration pursuant to this
Section 2(c) in which securities held by Warburg Pincus could have been
included for sale or distribution;

 

(iii)                                 In
any particular jurisdiction in which the Company would be required to execute a
general consent to service of process in effecting such registration,
qualification or compliance, unless the Company is already subject to service
in such jurisdiction and except as may be required by the Securities Act or
applicable rules or regulations thereunder; or

 

(iv)                                    During
the period starting with the date sixty (60) days prior to the Company’s good
faith estimate of the date of filing of, and ending on the date six (6) months
immediately following the effective date of, any registration statement
pertaining to securities of the Company (other than a registration of
securities in a Rule 145 

 

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transaction or with
respect to an employee benefit plan), provided that the Company is actively
employing in good faith all reasonable efforts to cause such registration
statement to become effective; provided, however, that the
Company may only delay an offering pursuant to this Section 2(c)(iv) for a
period of not more than sixty (60) days, if a filing of any other registration
statement is not made within that period and the Company may only exercise this
right once in any twelve (12) month period.

 

The
Company shall give written notice to all Holders of the receipt of a request
for registration pursuant to this Section 2(c) and shall provide a
reasonable opportunity for other Holders to participate in the registration,
provided that if the registration is for an underwritten offering, the terms of
Section 2(a)(ii) shall apply to all participants in such offering.  Subject to the foregoing, the Company will
use its best efforts to effect promptly the registration of all shares of
Registrable Securities on Form S-3 to the extent requested by the Holder or
Holders thereof for purposes of disposition. 
In the event any Holder requests a registration pursuant to this
Section 2(c) in connection with a distribution of Registrable Securities
to its partners, the registration shall provide for the resale by such
partners, if requested by such Holder.

 

(d)                                        Expenses
of Registration.  All Registration
Expenses incurred in connection with any registration, qualification or
compliance pursuant to this Section 2 shall be borne by the Company, and
all Selling Expenses shall be borne by the Holders of the securities so
registered pro rata on the basis of the number of their shares so registered.

 

(e)                                        Registration
Procedures.  In the case of each
registration effected by the Company pursuant to this Section 2, the
Company will keep the Holders, as applicable, advised in writing as to the
initiation of each registration and as to the completion thereof.  At its expense, the Company will:

 

(i)                                           keep
such registration effective for a period of one hundred twenty (120) days or
until the Holders (or in the case of a distribution to the partners of such
Holder, such partners), as applicable, have completed the distribution
described in the registration statement relating thereto, whichever first
occurs; provided, however, that (A) such 120-day period shall be
extended for a period of time equal to the period during which the Holders or
partners, as applicable, refrain from selling any securities included in such
registration in accordance with provisions in Section 2(i) hereof; and (B)
in the case of any registration of Registrable Securities on Form S-3 which are
intended to be offered on a continuous or delayed basis, such 120-day period shall
be extended until all such Registrable Securities are sold, provided that Rule
415, or any successor rule under the Securities Act, permits an offering on a
continuous or delayed basis, and provided  further, that
applicable rules under the Securities Act governing the obligation to file a
post-effective amendment permit, in lieu of filing a post-effective amendment
which (y) includes any prospectus required by Section 10(a) of the
Securities Act or (z) reflects facts or events representing a material or
fundamental change in the information set forth in the registration statement,
the incorporation by reference of information required to be included in (y)
and (z) above to be contained in periodic reports filed pursuant to
Section 12 or 15(d) of the Exchange Act in the registration statement;

 

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(ii)                                      furnish
such number of prospectuses and other documents incident thereto as each of the
Holders, as applicable, from time to time may reasonably request;

 

(iii)                                 notify
each Holder of Registrable Securities covered by such registration at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing; and

 

(iv)                                    furnish,
on the date that such Registrable Securities are delivered to the underwriters
for sale, if such securities are being sold through underwriters or, if such
securities are not being sold through underwriters, on the date that the registration
statement with respect to such securities becomes effective, (1) an opinion,
dated as of such date, of the counsel representing the Company for the purposes
of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering and reasonably satisfactory to
a majority in interest of the Holders participating in such registration,
addressed to the underwriters, if any, and to the Holders participating in such
registration and (2) a letter, dated as of such date, from the independent
certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters
in an underwritten public offering and reasonably satisfactory to a majority in
interest of the Holders participating in such registration, addressed to the
underwriters, if any, and if permitted by applicable accounting standards, to
the Holders participating in such registration.

 

(f)                                          Indemnification.

 

(i)                                           The
Company will indemnify each of the Holders, as applicable, each of its
officers, directors, partners and members, and each Person controlling each of
the Holders, with respect to each registration which has been effected pursuant
to this Section 2 in which such Holder includes Registrable Securities,
and each underwriter, if any, and each Person who controls any underwriter,
against all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any prospectus, offering circular or
other document (including any related registration statement, notification or
the like) incident to any such registration, qualification or compliance, or
based on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or the
Exchange Act or any rule or regulation thereunder applicable to the Company and
relating to action or inaction required of the Company in connection with any
such registration, qualification or compliance, and will reimburse each of the
Holders, each of its officers, directors, partners and members, and each Person
controlling each of the Holders, each such underwriter and each Person who
controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating and defending any such claim, loss,
damage, liability or action, provided that the Company will not be liable in
any such case to the extent that any such claim, loss, damage, liability or
expense arises out of or is based on any untrue

 

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statement or omission (or
alleged untrue statement or omission) based upon written information furnished
to the Company by the Holders or underwriter and stated to be specifically for
use therein.

 

(ii)                                      Each
of the Holders will, if Registrable Securities held by it are included in the
securities as to which such registration, qualification or compliance is being
effected, indemnify the Company, each of its directors and officers and each
underwriter, if any, of the Company’s securities covered by such a registration
statement, each Person who controls the Company or such underwriter, each other
Holder and each Other Stockholder and each of their respective officers,
directors, partners and members, and each Person controlling such other Holder
or Other Stockholder against all claims, losses, damages and liabilities (or
actions in respect thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document made by such Holder,
or any omission (or alleged omission) to state therein a material fact required
to be stated therein or necessary to make the statements by such Holder therein
not misleading, and will reimburse the Company, the underwriters and such other
Holders and Other Stockholders and their respective directors, officers,
members, partners, Persons, or control Persons for any legal or any other
expenses reasonably incurred in connection with investigating or defending any
such claim, loss, damage, liability or action, in each case to the extent, but
only to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in
conformity with written information furnished to the Company by such Holder and
stated to be specifically for use therein; provided, however,
that the obligations of each of the Holders hereunder shall be limited to an amount
equal to the net proceeds to such Holder of securities sold in such
registration as contemplated herein.

 

(iii)                                 Each
party entitled to indemnification under this Section 2(f) (the “Indemnified
Party”) shall give notice to the party required to provide indemnification
(the “Indemnifying Party”) promptly after such Indemnified Party has
actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom; provided, that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any
litigation resulting therefrom, shall be approved by the Indemnified Party
(whose approval shall not unreasonably be withheld, delayed or conditioned) and
the Indemnified Party may participate in such defense at such party’s expense
(unless the Indemnified Party shall have reasonably concluded that there may be
a conflict of interest between the Indemnifying Party and the Indemnified Party
in such action, in which case the fees and expenses of counsel shall be at the
expense of the Indemnifying Party), and provided  further, that
the failure of any Indemnified Party to give notice as provided herein shall
not relieve the Indemnifying Party of its obligations under this Section 2
unless the Indemnifying Party is materially and adversely prejudiced
thereby.  No Indemnifying Party, in the
defense of any such claim or litigation shall, except with the prior written
consent of each Indemnified Party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Party of a release from
all liability 

 

9

 

in respect to such claim
or litigation.  Each Indemnified Party
shall furnish such information regarding itself or the claim in question as an
Indemnifying Party may reasonably request in writing and as shall be reasonably
required in connection with the defense of such claim and litigation resulting
therefrom.

 

(iv)                                    If
the indemnification provided for in this Section 2(f) is held by a court
of competent jurisdiction to be unavailable to an Indemnified Party with
respect to any loss, liability, claim, damage or expense referred to herein,
then the Indemnifying Party, in lieu of indemnifying such Indemnified Party
hereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, liability, claim, damage or expense in such
proportion as is appropriate to reflect the relative fault of the Indemnifying
Party on the one hand and of the Indemnified Party on the other in connection
with the statements or omissions (or alleged statements or omissions) which
resulted in such loss, liability, claim, damage or expense, as well as any
other relevant equitable considerations. 
The relative fault of the Indemnifying Party and of the Indemnified
Party shall be determined 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 Indemnifying Party or by the Indemnified Party and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

 

(v)                                         Notwithstanding
the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection
with any underwritten public offering contemplated by this Agreement are in
conflict with the foregoing provisions, the provisions in such underwriting
agreement shall be controlling.

 

(vi)                                    The
foregoing indemnity agreement of the Company and Holders is subject to the
condition that, insofar as they relate to any loss, claim, liability or damage
arising out of a statement made in or omitted from a preliminary prospectus but
eliminated or remedied in the amended prospectus on file with the Commission at
the time the registration statement in question becomes effective or the
amended prospectus filed with the Commission pursuant to Commission Rule 424(b)
(the “Final Prospectus”), such indemnity or contribution agreement shall
not inure to the benefit of any underwriter or Holder if a copy of the Final
Prospectus was furnished to the underwriter and was not furnished to the Person
asserting the loss, liability, claim or damage at or prior to the time such
action is required by the Securities Act.

 

(g)                                        Information
by the Holders.

 

(i)                                           Each
of the Holders holding securities included in any registration shall furnish to
the Company such information regarding such Holder and the distribution
proposed by such Holder as the Company may reasonably request in writing and as
shall be reasonably required in connection with any registration, qualification
or compliance referred to in this Section 2.

 

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(ii)                                      In
the event that, either immediately prior to or subsequent to the effectiveness
of any registration statement, any Holder shall distribute Registrable
Securities to its partners, such Holder shall so advise the Company and provide
such information as shall be necessary to permit an amendment to such
registration statement to provide information with respect to such partners, as
selling securityholders.  Promptly
following receipt of such information, the Company shall file an appropriate
amendment to such registration statement reflecting the information so
provided.  Any incremental expense to
the Company resulting from such amendment shall be borne by such Holder.

 

(h)                                        Rule
144 Reporting.

 

With a view to making available the benefits of
certain rules and regulations of the Commission which may permit the sale of
restricted securities to the public without registration, the Company agrees
to:

 

(i)                                           make
and keep public information available as those terms are understood and defined
in Rule 144 under the Securities Act (“Rule 144”), at all times from and
after ninety (90) days following the effective date of the first registration
under the Securities Act filed by the Company for an offering of its securities
to the general public;

 

(ii)                                      use
its best efforts to file with the Commission in a timely manner all reports and
other documents required of the Company under the Securities Act and the
Exchange Act at any time after it has become subject to such reporting
requirements; and

 

(iii)                                 so
long as the Holder owns any Registrable Securities, furnish to the Holder upon
request, a written statement by the Company as to its compliance with the
reporting requirements of Rule 144 (at any time from and after ninety (90) days
following the effective date of the first registration statement filed by the
Company for an offering of its securities to the general public), and of the
Securities Act and the Exchange Act (at any time after it has become subject to
such reporting requirements), a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents so filed as the
Holder may reasonably request in availing itself of any rule or regulation of
the Commission allowing the Holder to sell any such securities without
registration.

 

(i)                                           “Market
Stand-off” Agreement.  Each of the
Holders agrees, if requested by the Company or an underwriter of equity
securities of the Company, not to sell or otherwise transfer or dispose of any
Registrable Securities held by such Holder, unless such shares are sold,
transferred or otherwise disposed of pursuant to a registered offering, during
the twelve (12) month period immediately following the effective date of a
registration statement of the Company filed under the Securities Act, provided
that:

 

(i)                                           such
agreement only applies to the Initial Public Offering;

 

(ii)                                      all
executive officers and directors of the Company and all stockholders who own in
excess of two percent (2%) of the Common Stock on a fully diluted basis enter
into similar agreements; and

 

11

 

(iii)                                 the
Company shall not be permitted to waive the terms of this Section 2(i)
with respect to any Holder unless the Company shall have waived the terms of
this Section 2(i) with respect to each other Holder.

 

If requested by the underwriters, the Holders shall
execute a separate agreement to the foregoing effect.  The Company may impose stop-transfer instructions with respect to
the shares (or securities) subject to the foregoing restriction until the end
of said twelve (12) month period.  The
provisions of this Section 2(i) shall be binding upon any transferee who
acquires Registrable Securities.

 

(j)                                           Termination.  The registration rights set forth in this
Section 2 shall not be available to any Holder if, (i) in the opinion of
counsel to the Company, all of the Registrable Securities then owned by such
Holder could be sold in any 90-day period pursuant to Rule 144 (without giving
effect to the provisions of Rule 144(k)) or (ii) all of the Registrable
Securities held by such Holder have been sold in a registration pursuant to the
Securities Act or pursuant to Rule 144.

 

SECTION 3.  MISCELLANEOUS.

 

(a)                                         Directly
or Indirectly.  Where any provision
in this Agreement refers to action to be taken by any Person, or which such
Person is prohibited from taking, such provision shall be applicable whether
such action is taken directly or indirectly by such Person.

 

(b)                                        Governing
Law.  This Agreement 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 entirely within such State,
without regard to conflict of law principles.

 

(c)                                        Section Headings.  The headings of the sections and subsections
of this Agreement are inserted for convenience only and shall not be deemed to
constitute a part thereof.

 

(d)                                        Notices.

 

(i)                                           All
notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been duly given if (1) delivered personally, (2) mailed,
certified or registered mail with postage prepaid, (3) sent by next-day or
overnight mail or delivery or (4) sent by telecopy (including facsimile) or
telegram, as follows:

 

(1)                                       if
to the Company, to c/o Warburg Pincus LLC, 466 Lexington Avenue, New York, NY
10017, Attention: Kewsong Lee and David Barr (facsimile: (212) 878-9100), or at
such other address or facsimile number as it may have furnished in writing to
the Holders in accordance with the terms hereof, with a copy to Willkie Farr
& Gallagher, 787 Seventh Avenue, New York, NY 10019, Attention: Steven J.
Gartner, Esq. (facsimile: (212) 728-9222); and

 

(2)                                       if
to the Holders, at the address or facsimile number listed on Schedule I
hereto, or at such other address or facsimile number as may have been furnished
the Company in writing in accordance with the terms hereof.

 

12

 

(ii)                                      Any
notice so addressed shall be deemed to be given: if delivered personally or by
telecopy (including facsimile) or telegram, on the date of such delivery, if a
business day, otherwise on the first business day thereafter; if mailed by
certified or registered mail with postage prepaid, on the third business day
after the date of such mailing, and if sent by next-day or overnight mail or
delivery, on the first business day following the date of such mailing or
delivery.

 

(e)                                        Reproduction
of Documents.  This Agreement and
all documents relating thereto, including, without limitation, any consents,
waivers and modifications which may hereafter be executed may be reproduced by
the Company and the Holders by any photographic, photostatic, microfilm,
microcard, miniature photographic or other similar process and the Holders and
the Company may destroy any original document so reproduced.  The parties hereto agree and stipulate that
any such reproduction shall be admissible in evidence as the original itself in
any judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by the Company or the
Holders in the regular course of business) and that any enlargement, facsimile
or further reproduction of such reproduction shall likewise be admissible in
evidence.

 

(f)                                          Successors
and Assigns.  This Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each
of the parties.

 

(g)                                        Entire
Agreement; Amendment and Waiver. 
This Agreement constitutes the entire understanding of the parties
hereto with respect to the subject matter hereof and supersedes all prior understanding
among such parties with respect to such subject matter.  Subject to the terms of Section 2(i)
hereof, this Agreement may be amended, and the observance of any term of this
Agreement may be waived, with (and only with) the written consent of the Company
and the Holders holding a majority of the then outstanding Registrable
Securities; provided, however, that if any amendment or waiver
would materially and adversely affect the rights or duties of one or more
Holders (the “Adversely Affected Holders”), in a way that is materially
different from its effect on such rights or duties of the other Holders, such
amendment or waiver shall not be effective as to any Adversely Affected Holder
unless consented to in writing by those Adversely Affected Holders who hold a
majority of the Registrable Securities held by all such Adversely Affected
Holders as of the date of such determination.

 

(h)                                        Severability.  In the event that any part or parts of this
Agreement shall be held illegal or unenforceable by any court or administrative
body of competent jurisdiction, such determination shall not affect the
remaining provisions of this Agreement which shall remain in full force and
effect.

 

(i)                                           Counterparts.  This Agreement may be executed in two or
more counterparts (including by facsimile), each of which shall be deemed an
original and all of which together shall be considered one and the same
agreement.

 

13

 

IN WITNESS WHEREOF, the
undersigned have executed this Registration Rights Agreement as of the date
first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
  WARBURG PINCUS PRIVATE EQUITY VIII,
  L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Warburg Pincus & Co., its

  General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David Barr

  	
   

  	
   

  
	
   

  	
  Name: David Barr

  	
   

  
	
   

  	
  Title: Partner

  	
   

  
	
   

  
	
   

  	
   

  
	
  TD CO-INVESTORS, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Warburg Pincus Private Equity VIII, L.P.,

  its Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Warburg Pincus & Co.,

  its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ David Barr

  	
   

  	
   

  
	
   

  	
  Name: David Barr

  	
   

  
	
   

  	
  Title: Partner

  	
   

  
								

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
  SSB CAPITAL PARTNERS

  (MASTER FUND) I, LP

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  SSBPIF GP CORP., its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John R. Barber

  	
   

  	
   

  
	
   

  	
  Name:

  	
  John R. Barber

  	
   

  
	
   

  	
  Title:

  	
  Co-President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CGI PRIVATE EQUITY L.P., LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John R. Barber

  	
   

  	
   

  
	
   

  	
  Name:

  	
  John R. Barber

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signatory

  	
   

  
								

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  A.S.F. CO-INVESTMENT PARTNERS II,
  L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  PAF 1/03, LLC, as General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Old Kings II, LLC, as Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Paul R. Crotty

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Paul R. Crotty

  	
   

  
	
   

  	
  Title:

  	
  Authorized Member

  	
   

  
								

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  BANC OF AMERICA CAPITAL INVESTORS,
  L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Banc of America Capital Management,

  L.P., its general partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  BACM I GP, LLC, its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Robert L. Edwards, Jr.

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Robert L. Edwards, Jr.

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signatory

  	
   

  
									

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  ML TD HOLDINGS, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Merrill Lynch Investment Managers,

  L.P., its Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Michael Cerminaro

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael Cerminaro

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signatory

  	
   

  
									

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  NEW YORK STATE RETIREMENT

  CO-INVESTMENT FUND L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  PCG NYS Investments LLC, its

  General Partner

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Pacific Corporate Group LLC,

  its Managing Member

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip Posner

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Philip Posner

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
									

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  ABBOTT CAPITAL PRIVATE EQUITY

  FUND III, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Abbott Capital Management, LLC,

  its Investment Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Raymond L. Held

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Raymond L. Held

  	
   

  
	
   

  	
  Title:

  	
  Managing Director

  	
   

  
								

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  TEACHERS INSURANCE AND ANNUITY

  ASSOCIATION OF AMERICA

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Holly Holtz

  	
   

  	
   

  
	
   

  	
  Name:  Holly
  Holtz

  	
   

  
	
   

  	
  Title: 
  Director

  	
   

  
						

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Michael Graff

  	
   

  	
   

  
	
  Michael
  Graff

  	
   

  
					

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Registration Rights Agreement as of the date first set forth above.

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNY PARTNERS FUND II, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BNY
  Private Investment Management, Inc., 
its Member Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Burton M. Siegel

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Burton
  M. Siegel

  
	
   

  	
   

  	
  Title:

  	
  Senior
  Vice President

  
								

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANAGEMENT STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
  W.
  Nicholas Howley

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Gregory Rufus

  	
   

  
	
   

  	
  Gregory
  Rufus

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Douglas Peacock

  	
   

  
	
   

  	
  Douglas
  Peacock

  
							

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Ray Laubenthal

  	
   

  
	
   

  	
  Ray
  Laubenthal

  
					

 

 

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

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  James Riley

  	
   

  
	
   

  	
  James
  Riley

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  James Skulina

  	
   

  
	
   

  	
  James
  Skulina

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Rose DiFranco

  	
   

  
	
   

  	
  Rose
  DiFranco

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Roger Jones

  	
   

  
	
   

  	
  Roger
  Jones

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Robert Henderson

  	
   

  
	
   

  	
  Robert
  Henderson

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Hosrow Bordbar

  	
   

  
	
   

  	
  Hosrow
  Bordbar

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Peter Palmer

  	
   

  
	
   

  	
  Peter
  Palmer

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Fred Ching

  	
   

  
	
   

  	
  Fred
  Ching

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Cindy Terakawa

  	
   

  
	
   

  	
  Cindy
  Terakawa

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  John Leary

  	
   

  
	
   

  	
  John
  Leary

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Kevin McHenry

  	
   

  
	
   

  	
  Kevin
  McHenry

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Joel Reiss

  	
   

  
	
   

  	
  Joel
  Reiss

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Thomas Sievers

  	
   

  
	
   

  	
  Thomas
  Sievers

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Vicki Saugstad

  	
   

  
	
   

  	
  Vicki
  Saugstad

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Todd Littleton

  	
   

  
	
   

  	
  Todd
  Littleton

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Bernie Iversen

  	
   

  
	
   

  	
  Bernie
  Iversen

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  James Liddle

  	
   

  
	
   

  	
  James
  Liddle

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Jeffrey Falkenberry

  	
   

  
	
   

  	
  Jeffrey
  Falkenberry

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Albert J. Rodriguez

  	
   

  
	
   

  	
  Albert
  J. Rodriguez

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Sergio Rodriguez

  	
   

  
	
   

  	
  Sergio
  Rodriguez

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Gary McMurtrey

  	
   

  
	
   

  	
  Gary
  McMurtrey

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Gary McMurtrey

  	
   

  
	
   

  	
  Chuck
  Burger

  
					

 

 

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

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Gary McMurtrey

  	
   

  
	
   

  	
  J.
  Glyn Vorderkunz

  
					

 

 

 

 

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

 

 

	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  

 

 

	
   

  	
  BRATENAHL INVESTMENTS, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name:
  W. Nicholas Howley

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

 

 

 

Schedule I

 

Institutional Investors

 

Investor
Name and Address

 

Warburg Pincus Private Equity VIII, L.P.

c/o Warburg Pincus LLC

466 Lexington Avenue

New York, NY 10017

Facsimile: (212) 878-9100

Attention: Kewsong
Lee

David Barr

 

TD Co-Investors, LLC

Warburg Pincus Private Equity VIII, L.P.

c/o Warburg Pincus LLC

466 Lexington Avenue

New York, NY 10017

Facsimile: (212) 878-9100

Attention: Kewsong
Lee

David Barr

 

SSB
Capital Partners (Master Fund) I, LP

388 Greenwich St., 32nd

Floor, New York, NY 10013

Facsimile No.: (212) 816-0229

Attn:  Blair Jacobson

 

CGI
Private Equity L.P., LLC

388 Greenwich St., 32nd

Floor, New York, NY 10013

Facsimile No.: (212) 816-0229

Attn:  Blair Jacobson

 

A.S.F.
Co-Investment Partners II, L.P.

A.S.F. Co-Investment
Partners II, L.P.

c/o Portfolio Advisors,
LLC

9 Old Kings Highway South

Darien, CT  06920

Attention: Hugh Perloff

 

Banc of
America Capital Investors, L.P.

100 North Tryon Street,
25th Floor

Banc of America Capital
Investors

Charlotte, NC 28255

Facsimile No.: (704)
386-6432

Attention: Robert L.
Edwards

 

ML TD
Holdings, LLC

c/o Merrill Lynch Investment Managers

800 Scudders Mill Road 

Plainsboro, NJ 08536

Attention: Lynn Baranski

 

 

New York
State Retirement Co-Investment Fund L.P.

c/o Pacific Corporate
Group LLC

1200 Prospect Street,
Suite 200

La Jolla, CA 92037

 

Abbott
Capital Private Equity Fund II, L.P.

1211 Avenue of the
Americas, Suite 4300

New York, NY 10036

Attention: Mr. Raymond L.
Held

Facsimile No.:  (212) 757-0835

 

Teachers
Insurance and Annuity Association of America

730 Third Avenue

New York, New York
10017-3206

Attention: Holly Holtz
and Nancy DeBuccio, Securities Division - Private Equity Funds

Facsimile No.: (212)
907-2454

 

Michael
Graff

27 East 62nd
Street, Apt. 7AB

New York, NY 10021

 

BNY
Partners Fund II, L.L.C.

The Bank of New York

1290 Avenue of the
Americas, 5th Floor

New York, NY 10104

Attention: Burton M.
Siegel

 

with a copy to:

 

The Bank of New York

75 Park Place, 10th Floor

New York, NY 10286

Facsimile: (212) 298-1185

Attention: Nancy Corry

 

 

Schedule II

 

Management Investors

 

Management Investor Name and Address

 

Douglas W. Peacock 

10901 Burnt Mill Rd., #2104

Jacksonville, FL  32256

 

W. Nicholas Howley

10494 Lakeshore Blvd.

Bratenahl, OH  44108-1063

 

Bratenahl Investments,
Ltd.

c/o W. Nicholas Howley

10474 Lakeshore Blvd.

Bratenahl, OH 44108-1063

 

Gregory Rufus

32346 Brandon Place

Avon Lake, OH  44012

 

Ray Laubenthal 

9110 Oakstone Trail

Chardon Township, OH  44024

 

James Riley

2086 Baxterly Avenue

Lakewood, OH  44107

 

Rose DiFranco 

5928 Blakely

Highland Heights, OH  44143

 

James Skulina 

7736 Ellington Place

Mentor, OH  44060

 

Roger Jones 

34950 Ada Drive

Solon, OH  44139

 

Robert
Henderson 

1645 Alamitas Ave.

Monrovia, CA  91016

 

Hosrow
Bordbar

26871 Preciados Dr

Mission Viejo, CA  92691

 

 

Fred
Ching 

3932 Skycrest Drive

Pasadena, CA  91107

 

Peter
Palmer

1717 Camden Ave

South Pasadena, CA  91030

 

Cindy
Terakawa

629 Pencin Drive

Whittier, CA  90601

 

John Leary 

27830 Elk Mt. Drive

Yorba Linda, CA  92887

 

Kevin McHenry 

27532 Caesars Place

Laguna Niguel, CA  92677

 

Joel Reiss 

1206 Stephanie Drive

Corona, CA  92882

 

Vicki Saugstad

4209 Vermont Street

Long Beach, CA  90814

 

Tom Sievers

29632 Novacella

Laguna Niguel, CA  92677

 

Todd Littleton

206 East Crest Drive

Simpsonville, SC  29681

 

Jeffrey
Faulkenberry

420 Phillips Lane

Greer, SC  29650

 

Bernie Iversen

113 Greenleaf

Easley, SC  29642

 

 

James Liddle

1520 Old Mill Road

Easley, SC  29642

 

Albert J. Rodriguez

114 Greentree

Crawford, TX 76638

 

Sergio Rodriguez

115 Whistling Wind Trail

McGregor, TX 76657

 

Chuck Burger

300 Telluride

Waco, TX 76712

 

J. Glyn Vorderkunz

510 Kiowa Lane

Waco, TX 76706

 

Gary
McMurtrey

925 Austin Hines Drive

China Springs TX  76633EXHIBIT 10.4

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT,
dated as of June 6, 2003, is made by and between TransDigm Holding Company, a
Delaware corporation (the “Company”), and W. Nicholas Howley (the
“Executive”).  This Agreement shall only
become effective as of the effective time of the merger (the “Effective Date”)
between TD Acquisition Corporation, a Delaware corporation, and the Company
(the “Merger”) pursuant to the Agreement and Plan of Merger (the “Merger
Agreement”) dated as of June 6, 2003, and shall not become effective and shall
be null and void upon any termination of the Merger Agreement in accordance
with its terms.

 

RECITALS:

 

WHEREAS, prior
to the Effective Date, the Executive was employed by the Company as its
President and Chief Executive Officer pursuant to the terms of an employment
agreement dated as of May 19, 1999, as amended pursuant to an amendment dated
as of January 17, 2002 (the “Prior Employment Agreement”); and

 

WHEREAS,
Section 5(a)(iv) of the Prior Employment Agreement provides that the Executive
shall be entitled to terminate his employment with the Company for Good Reason
(as defined in the Prior Employment Agreement), which would entitle the
Executive to the payment of severance benefits pursuant to Section 6(b) of the
Prior Employment Agreement; and

 

WHEREAS, as a
condition to entering into this Agreement, the Executive has agreed to waive
any right he would have to terminate his employment for Good Reason (as defined
in the Prior Employment Agreement) and to the payment of severance and other
benefits under Section 6(b) of the Prior Employment Agreement as a result of
the Merger; and

 

WHEREAS, in
connection with the Merger, it is the desire of the Company to assure itself of
the continuity of the management services of the Executive on and after the
Effective Date.

 

NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants
and agreements set forth below, the parties hereto agree as follows:

 

1.                                       Certain
Definitions.

 

(a)                                  “Annual
Base Salary” shall have the meaning set forth in Section 4(a).

 

(b)                                 “Board”
shall mean the Board of Directors of the Company.

 

(c)                                  “Cause”
shall mean either of the following:(i) the repeated failure by the Executive,
after written notice from the Board, substantially to perform his material
duties and responsibilities as an officer or employee or director of the
Company or any of its subsidiaries (other than any such failure resulting from
incapacity due to reasonably documented physical or mental illness), or (ii)
any willful misconduct by the Executive that has the effect of materially
injuring the business of the Company or any of its subsidiaries, including,
without limitation, the

 

 

disclosure of material secret
or confidential information of the Company or any of its subsidiaries.

 

(d)                                 “Change
in Control” shall mean a change in ownership or control of the Company
effected through a transaction or series of transactions (other than an
offering of Common Stock to the general public through a registration statement
filed with the Securities and Exchange Commission) whereby any “person” or
related “group” of “persons” (as such terms are used in Sections 13(d) and
14(d)(2) of the Exchange Act) (other than the Company, any of its subsidiaries,
an employee benefit plan maintained by the Company or any of its subsidiaries,
a Principal Stockholder or a “person” that, prior to such transaction, directly
or indirectly controls, is controlled by, or is under common control with, the
Company or a Principal Stockholder) directly or indirectly acquires beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of
securities of the Company possessing more than fifty percent (50%) of the total
combined voting power of the Company’s securities outstanding immediately after
such acquisition.

 

(e)                                  “Common
Stock” shall mean the common stock of the Company, $0.01 par value per
share.

 

(f)                                    “Company”
shall have the meaning set forth in the preamble hereto.

 

(g)                                 “Compensation
Committee” shall mean the Compensation Committee of the Board whose members
shall be appointed by the Board from time to time.

 

(h)                                 “Date
of Termination” shall mean (i) if the Executive’s employment is terminated
by reason of his death, the date of his death, and (ii) if the Executive’s
employment is terminated pursuant to Sections 5(a)(ii) - (vi), the date
specified in the Notice of Termination.

 

(i)                                     “Disability”
shall mean the inability of the Executive to perform his duties and
responsibilities as an officer or employee of the Company or any of its
subsidiaries on a full-time basis for more than six months within any 12-month
period because of a physical, mental or emotional incapacity resulting from
injury, sickness or disease.

 

(j)                                     “Effective
Date” shall have the meaning set forth in the first paragraph hereof.

 

(k)                                  “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(l)                                     “Executive”
shall have the meaning set forth in the preamble hereto.

 

(m)                               “Good
Reason” shall mean the occurrence of any of the following: (i) a material
diminution in the Executive’s title, duties or responsibilities, without his
prior written consent, or (ii) a reduction of the Executive’s aggregate cash
compensation (including bonus opportunities), benefits or perquisites, without
his prior written consent, (iii) a Change in Control, (iv) the Company requires
the Executive, without his prior written consent, to be based at any office or
location that requires a relocation greater than 30 miles from Richmond
Heights, Ohio, or (v) any material breach of this Agreement by the
Company.  Any provision of this
Agreement to the contrary notwithstanding, neither the Merger nor any of the
transactions contemplated thereby shall constitute Good Reason.

 

2

 

(n)                                 “Management
Stockholders’ Agreement” shall mean that certain Management Stockholders’
Agreement to be entered into as of the Effective Date among the Company,
Warburg Pincus Private Equity VIII, L.P., the Executive and the other
stockholders party thereto, as amended from time to time.

 

(o)                                 “Notice
of Termination” shall have the meaning set forth in Section 5(b).

 

(p)                                 “Option
Agreements” shall mean the written agreements between the Company and the
Executive pursuant to which the Executive holds or is granted options to
purchase Common Stock, including, without limitation, agreements evidencing
options granted under the Option Plan.

 

(q)                                 “Option
Plan” shall mean any option plan adopted or maintained by the Company for
employees generally.

 

(r)                                    “Options”
as of any date of determination shall mean options held by the Executive as of
such date to purchase Common Stock of the Company.

 

(s)                                  “Payment
Period” shall have the meaning set forth in Section 6(b)(i).

 

(t)                                    “Principal
Stockholder” shall mean Warburg Pincus Private Equity VIII, L.P. and any of
its permitted assignees under the Management Stockholders’ Agreement.

 

(u)                                 “Rollover
Agreement” shall mean that certain agreement among the Company, the
Executive and Warburg Pincus Private Equity VIII, L.P., governing the treatment
of “Rollover Options” (as described therein).

 

(v)                                 “Term”
shall have the meaning set forth in Section 2.

 

2.                                       Employment.

 

The Company
shall continue to employ the Executive and the Executive shall remain in the
employ of the Company, for the period set forth in this Section 2, in the
positions set forth in Section 3 and upon the other terms and conditions herein
provided.  The term of employment under
this Agreement (the “Term”) shall be for the period beginning on the Effective
Date and ending on the fifth anniversary thereof unless earlier terminated as
provided in Section 5; provided, however, that unless so earlier
terminated or unless the Executive or the Company shall give written notice to
the other of his or its intention not to renew this Agreement no less than
sixty days prior to the scheduled expiration thereof, upon the fifth
anniversary of the Effective Date, this Agreement shall automatically be
renewed for an additional two year period.

 

3.                                       Position
and Duties.

 

(a)                                  During
the Term, the Executive shall serve as the President and Chief Executive
Officer of each of the Company and its subsidiary, TransDigm Inc. (“TransDigm”)
with such customary responsibilities, duties and authority as may from time to
time be assigned to the Executive by the Board.  During the Term, the Executive shall devote substantially all his
working time and efforts to the business and affairs of the Company and
TransDigm; provided,

 

3

 

that it shall not be considered
a violation of the foregoing for the Executive to (i) with the prior consent of
the Board (which consent shall not unreasonably be withheld), serve on
corporate, industry, civic or charitable boards or committees (provided, that
without such prior consent of the Board, the Executive shall, subject to the
limitation set forth below, be permitted to continue to serve as a member of
the board of directors (or board of trustees) or as a committee member, as the
case may be, of Wings, Inc. and Gilmour Academy), and (ii) manage his personal
investments, so long as none of such activities significantly interferes with
the Executive’s duties hereunder.

 

(b)                                 The
Executive shall serve as the Chairman of the Board during the Term, and during
the Term, the Board shall propose the Executive for re-election to the Board
and the Principal Stockholders shall vote all of their shares of Common Stock
in favor of such re-election.  If
elected or appointed thereto, and only for the duration of such elected term or
appointment, the Executive shall also serve as a director of any of the
Company’s subsidiaries and/or in one or more executive offices of any entities
owned by the Company.

 

4.                                       Compensation
and Related Matters.

 

(a)                                  Annual
Base Salary.  During the Term, the
Executive shall receive a base salary at a rate that is no less than $380,000
per annum (the “Annual Base Salary”), payable in accordance with the Company’s
normal payroll practices.  The rate of
the Annual Base Salary shall be reviewed by the Compensation Committee on or
prior to each anniversary of the Effective Date during the Term and may be
increased, but not decreased, upon such review.

 

(b)                                 Bonus.  For each fiscal year during the Term, the
Executive shall be eligible to participate in the Company’s annual cash bonus
plan in accordance with terms and provisions which shall be consistent with the
Company’s executive bonus policy in effect as of the Effective Date.

 

(c)                                  Non-Qualified
Deferred Compensation.  During the
Term, the Executive shall be eligible to continue to participate in the
Company’s Non-Qualified Deferred Compensation Plan and Rabbi Trust in a manner
that is consistent with that in effect as of the Effective Date.  The Company shall continue to fund the Rabbi
Trust throughout the Term in a manner consistent with its funding practices in
effect as of the Effective Date.

 

(d)                                 Long
Term Incentive Compensation.  During
the Term, the Executive shall be entitled to participate in the Option Plan or
any successor plan thereto.

 

(e)                                  Benefits.  During the Term, the Executive shall be
entitled to participate in the other employee benefit plans, programs and
arrangements of the Company now (or, to the extent determined by the Board or
Compensation Committee, hereafter) in effect which are applicable to the senior
officers of the Company generally, subject to and on a basis consistent with
the terms, conditions and overall administration thereof (including the right
of the Company to amend, modify or terminate such plans).

 

(f)                                    Expenses.  Pursuant to the Company’s customary policies
in force at the time of payment, the Executive shall be reimbursed for all
expenses properly incurred by the Executive on the Company’s behalf in the
performance of the Executive’s duties hereunder.

 

4

 

(g)                                 Vacation.  The Executive shall be entitled to an amount
of annual vacation days, and to compensation in respect of earned but unused
vacation days in accordance with the Company’s vacation policy as in effect as
of the Effective Date.  The Executive
shall also be entitled to paid holidays in accordance with the Company’s
practices with respect to same as in effect as of the Effective Date.

 

(h)                                 Automobile.  During the Term, the Company shall provide
the Executive with an annual automobile allowance at a rate not less than that
in effect as of the Effective Date.

 

(i)                                     Club
Membership.  During the Term, the
Company shall pay on behalf of the Executive, or reimburse the Executive for,
annual membership fees payable in connection with the Executive’s membership in
one country club of the Executive’s choice.

 

(j)                                     Tax
and Financial Planning Assistance. 
During the Term, the Company shall, upon submission of proper
documentation, pay on behalf of the Executive, or reimburse the Executive for,
reasonable expenses incurred for professional assistance in planning and
preparing his tax returns and managing his financial affairs, provided that
such expenses do not exceed $28,500 per annum.

 

5.                                       Termination.

 

(a)                                  The
Executive’s employment hereunder may be terminated by the Company or the
Executive, as applicable, without any breach of this Agreement only under the
following circumstances and in accordance with subsection (b):

 

(i)                                     Death.  The Executive’s employment hereunder shall
terminate upon his death.

 

(ii)                                  Disability.  If the Company determines in good faith that
the Executive has incurred a Disability, the Company may give the Executive
written notice of its intention to terminate the Executive’s employment.  In such event, the Executive’s employment
with the Company shall terminate effective on the 30th day after receipt of
such notice by the Executive, provided that within such 30 day period the
Executive shall not have returned to full-time performance of his duties.  The Executive shall continue to receive his
Annual Base Salary until the 90th day following the date of the Notice of
Termination.

 

(iii)                               Termination
for Cause.  The Company may
terminate the Executive’s employment hereunder for Cause.

 

(iv)                              Resignation
for Good Reason.  The Executive may
terminate his employment hereunder for Good Reason.

 

(v)                                 Termination
without Cause.  The Company may
terminate the Executive’s employment hereunder without Cause.

 

(vi)                              Resignation
without Good Reason.  The Executive
may resign his employment hereunder without Good Reason.

 

5

 

(b)                                 Notice
of Termination.  Any termination of
the Executive’s employment by the Company or by the Executive under this
Section 5 (other than termination pursuant to subsection (a)(i)) shall be communicated
by a written notice from the Board or the Executive to the other indicating the
specific termination provision in this Agreement relied upon, setting forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated, and
specifying a Date of Termination which, except in the case of Termination by
reason of Disability or Termination for Cause pursuant to Section 5(a)(ii) or
5(a)(iii), respectively, shall be at least 90 days following the date of such
notice (a “Notice of Termination”).  In
the event of Termination for Cause pursuant to Section 5(a)(iii), the Executive
shall have the right, if the basis for such Cause is curable, to cure the same
within 15 days following the Notice of Termination for Cause, and Cause shall
not be deemed to exist if the Executive cures the event giving rise to Cause
within such 15 day period.  In the event
of Termination by the Executive for Good Reason pursuant to Section 5(a)(iv),
the Company shall have the right, if the basis for such Good Reason is curable,
to cure the same within 15 days following the Notice of Termination for Good
Reason, and Good Reason shall not be deemed to exist if the Company cures the
event giving rise to Good Reason within such 15 day period.  The Executive shall continue to receive his
Annual Base Salary, annual bonus and all other compensation and perquisites
referenced in Section 4 through the Date of Termination.

 

6.                                       Severance
Payments.

 

(a)                                  Termination
for any Reason.  In the event the
Executive’s employment with the Company is terminated for any reason, the
Company shall pay the Executive (or his beneficiary in the event of his death)
any unpaid Annual Base Salary that has accrued as of the Date of Termination,
any unreimbursed expenses due to the Executive and an amount for accrued but
unused sick days and vacation days.  The
Executive shall also be entitled to accrued, vested benefits under the Company’s
benefit plans and programs as provided therein.  The Executive shall be entitled to the additional payments and
benefits described below only as set forth herein.

 

(b)                                 Termination
without Cause, Resignation for Good Reason or Termination by Reason of Death or
Disability.  In the event of the Executive’s
Termination without Cause (pursuant to Section 5(a)(v)), Resignation for Good
Reason (pursuant to Section 5(a)(iv)) or termination by reason of death or
Disability (pursuant to Section 5(a)(i) or (ii), respectively), the Company
shall pay to the Executive the amounts described in subsection (a), and:

 

(i)                                     pay
to the Executive, in accordance with its regular payroll practice, an amount
equal to the Annual Base Salary and annual bonus provided herein that the
Executive would have been entitled to receive had he continued his employment
hereunder for the period beginning on the Date of Termination and ending on the
date that is eighteen months thereafter (the “Payment Period”);

 

(ii)                                  pay
or provide to the Executive for the Payment Period the perquisites to which the
Executive is entitled under Sections 4(h), 4(i) and 4(j); and

 

(iii)                               continue
for the Payment Period the Executive’s and his then eligible dependents’
coverage under the Company’s medical benefit plans.

 

6

 

7.                                       Competition;
Nonsolicitation.

 

(a)                                  During
the Term and, following any termination of Executive’s employment, for a period
equal to (i) the Payment Period, in the case of a termination of employment for
which payments are made pursuant to Section 6(b) hereof, or (ii) twenty-four
(24) months from the date of such termination in the event of a voluntary
termination of employment by the Executive without Good Reason, or a
termination by the Company for Cause, the Executive shall not, without the
prior written consent of the Board, directly or indirectly engage in, or have
any interest in, or manage or operate any person, firm, corporation,
partnership or business (whether as director, officer, employee, agent,
representative, partner, security holder, consultant or otherwise) that engages
in any business (other than a business that constitutes less than 5% of the
relevant entity’s net revenue and a proportionate share of its operating
income) which competes with any business of the Company or any entity owned by
it anywhere in the world; provided, however, that the Executive
shall be permitted to acquire a stock interest in such a corporation provided
such stock is publicly traded and the stock so acquired does not represent more
than one percent of the outstanding shares of such corporation.

 

(b)                                 During
the Term and for a period of two years following any termination of the
Executive’s employment, the Executive shall not, directly or indirectly, on his
own behalf or on behalf of any other person or entity, whether as an owner,
employee, service provider or otherwise, solicit or induce any person who is or
was employed by, or providing consulting services to, the Company or any of its
subsidiaries during the twelve-month period prior to the date of such
termination, to terminate their employment or consulting relationship with the
Company or any such subsidiary.

 

(c)                                  In
the event the agreement in this Section 7 shall be determined by any court of
competent jurisdiction to be unenforceable by reason of its extending for too
great a period of time or over too great a geographical area or by reason of
its being too extensive in any other respect, it shall be interpreted to extend
only over the maximum period of time for which it may be enforceable, and/or
over the maximum geographical area as to which it may be enforceable and/or to
the maximum extent in all other respects as to which it may be enforceable, all
as determined by such court in such action.

 

8.                                       Nondisclosure
of Proprietary Information.

 

(a)                                  Except
as required in the faithful performance of the Executive’s duties hereunder or
pursuant to subsection (c), the Executive shall, in perpetuity, maintain in
confidence and shall not directly, indirectly or otherwise, use, disseminate,
disclose or publish, or use for his benefit or the benefit of any person, firm,
corporation or other entity any confidential or proprietary information or
trade secrets of or relating to the Company, including, without limitation,
information with respect to the Company’s operations, processes, products,
inventions, business practices, finances, principals, vendors, suppliers,
customers, potential customers, marketing methods, costs, prices, contractual
relationships, regulatory status, compensation paid to employees or other terms
of employment, except for such information which is or becomes publicly
available other than as a result of a breach by the Executive of this Section
8, or deliver to any person, firm, corporation or other entity any document,
record, notebook, computer program or similar repository of or containing any
such confidential or proprietary information

 

7

 

or trade secrets.  The parties hereby stipulate and agree that
as between them the foregoing matters are important, material and confidential
proprietary information and trade secrets and affect the successful conduct of
the businesses of the Company (and any successor or assignee of the Company).

 

(b)                                 Upon
termination of the Executive’s employment with the Company for any reason, the
Executive shall promptly deliver to the Company all correspondence, drawings,
manuals, letters, notes, notebooks, reports, programs, plans, proposals,
financial documents, or any other documents concerning the Company’s customers,
business plans, marketing strategies, products or processes and/or which
contain proprietary information or trade secrets.

 

(c)                                  The
Executive may respond to a lawful and valid subpoena or other legal process but
shall give the Company the earliest possible notice thereof, shall, as much in
advance of the return date as possible, make available to the Company and its
counsel the documents and other information sought and shall assist such
counsel in resisting or otherwise responding to such process.

 

9.                                       Injunctive
Relief.

 

It is
recognized and acknowledged by the Executive that a breach of the covenants
contained in Sections 7 and 8 will cause irreparable damage to the Company and
its goodwill, the exact amount of which will be difficult or impossible to
ascertain, and that the remedies at law for any such breach will be
inadequate.  Accordingly, the Executive
agrees that in the event of a breach of any of the covenants contained in
Sections 7 and 8, in addition to any other remedy which may be available at law
or in equity, the Company shall be entitled to specific performance and
injunctive relief.

 

10.                                 Survival.

 

The expiration
or termination of the Term shall not impair the rights or obligations of any
party hereto which shall have accrued hereunder prior to such expiration.

 

11.                                 Binding
on Successors.

 

This Agreement
shall be binding upon and inure to the benefit of the Company, the Executive
and their respective successors, assigns, personnel and legal representatives,
executors, administrators, heirs, distributees, devisees, and legatees, as
applicable.

 

12.                                 Governing
Law.

 

This Agreement
shall be governed, construed, interpreted and enforced in accordance with the
substantive laws of the State of New York.

 

13.                                 Validity.

 

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

 

8

 

14.                                 Notices.

 

Any notice,
request, claim, demand, document or other communication hereunder to any party
shall be effective upon receipt (or refusal of receipt) and shall be in writing
and delivered personally or sent by telex, telecopy, or certified or registered
mail, postage prepaid, as follows:

 

(a)                                  If
to the Company, to:

 

TransDigm
Holding Company

26380 Curtiss Wright Parkway

Richmond Heights, Ohio 44143

Attention:  Corporate Secretary

 

with copies to:

 

TD Acquisition
Corporation

c/o Warburg Pincus LLC

466 Lexington Avenue

New York, New York 10017

Attention: David Barr

 

and

 

Willkie Farr
& Gallagher

787 Seventh Avenue

New York, New York, 10019

Attention: Frank Daniele, Esq.

 

(b)                                 If
to the Executive, to him at the address set forth below under his signature, with
a copy to:

 

Baker &
Hostetler LLP

3200 National City Center

1900 East 9th Street

Cleveland, Ohio 44114-3485

Attention: Elizabeth A. Dellinger, Esq.

 

or at any other address as any
party shall have specified by notice in writing to the other party in accordance
with this Section 15.

 

15.                                 Counterparts.

 

This Agreement
may be executed in several counterparts, each of which shall be deemed to be an
original, but all of which together shall constitute one and the same
agreement.

 

9

 

16.                                 Entire
Agreement; Prior Employment Agreement.

 

The terms of
this Agreement, together with the Management Stockholders’ Agreement, the
Option Plan, the Option Agreements and the Rollover Agreement, are intended by
the parties to be the final expression of their agreement with respect to the
employment of the Executive by the Company and may not be contradicted by
evidence of any prior or contemporaneous agreement, including, but not limited
to, the Prior Employment Agreement and any plans and agreements referenced
therein.  The parties further intend
that this Agreement, and the aforementioned contemporaneous documents, shall
constitute the complete and exclusive statement of its terms and that no
extrinsic evidence whatsoever may be introduced in any judicial,
administrative, or other legal proceeding to vary the terms of this
Agreement.  Notwithstanding any of the
foregoing to the contrary, in the event of a conflict between the terms of this
Agreement and the Management Stockholders’ Agreement, the terms of this
Agreement shall govern.  From and after
the Effective Date, the Prior Employment Agreement shall be null and void and
of no further force and effect.

 

17.                                 Amendments;
Waivers.

 

This Agreement
may not be modified, amended, or terminated except by an instrument in writing,
signed by the Executive and the Chairman of the Compensation Committee.  By an instrument in writing similarly
executed, the Executive or the Company may waive compliance by the other party
or parties with any provision of this Agreement that such other party was or is
obligated to comply with or perform; provided, however, that such
waiver shall not operate as a waiver of, or estoppel with respect to, any other
or subsequent failure.  No failure to
exercise and no delay in exercising any right, remedy or power hereunder shall
preclude any other or further exercise of any other right, remedy or power
provided herein or by law or in equity.

 

18.                                 No
Inconsistent Actions.

 

The parties
hereto shall not voluntarily undertake or fail to undertake any action or
course of action inconsistent with the provisions or essential intent of this
Agreement.  Furthermore, it is the
intent of the parties hereto to act in a fair and reasonable manner with
respect to the interpretation and application of the provisions of this
Agreement.

 

19.                                 Arbitration.

 

Any dispute or
controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration, conducted before a panel of three arbitrators in
New York, New York, in accordance with the rules of the American Arbitration
Association then in effect.  Judgment
may be entered on the arbitrator’s award in any court having jurisdiction; provided,
however, that the Company shall be entitled to seek a restraining order
or injunction in any court of competent jurisdiction to prevent any
continuation of any violation of the provisions of Section 7 or 8 of this
Agreement and the Executive hereby consents that such restraining order or
injunction may be granted without the necessity of the Company’s posting any
bond; and provided  further, that the Executive shall be entitled
to seek specific performance of his right to be paid until the Date of
Termination during the pendency of any dispute or controversy arising

 

10

 

under or in connection with
this Agreement.  Each of the parties
hereto shall bear its share of the fees and expenses of any arbitration
hereunder.

 

20.                                 Indemnification
and Insurance; Legal Expenses.

 

(a)                                  During
the Term and so long as the Executive has not breached any of his obligations
set forth in Sections 7 and 8, the Company shall indemnify the Executive to the
fullest extent permitted by the laws of the State of Delaware, as in effect at
the time of the subject act or omission, and shall advance to the Executive
reasonable attorneys’ fees and expenses as such fees and expenses are incurred
(subject to an undertaking from the Executive to repay such advances if it
shall be finally determined by a judicial decision which is not subject to
further appeal that the Executive was not entitled to the reimbursement of such
fees and expenses) and he shall be entitled to the protection of any insurance
policies the Company shall elect to maintain generally for the benefit of its
directors and officers (“Directors and Officers Insurance”) against all costs,
charges and expenses incurred or sustained by him in connection with any
action, suit or proceeding to which he may be made a party by reason of his
being or having been a director, officer or employee of the Company or any of
its subsidiaries or his serving or having served any other enterprise as a
director, officer or employee at the request of the Company (other than any
dispute, claim or controversy arising under or relating to this
Agreement).  The Company covenants to
maintain during the Term for the benefit of the Executive (in his capacity as
an officer and director of the Company) Directors and Officers Insurance
providing customary benefits to the Executive.

 

(b)                                 The
Company shall pay the Executive’s reasonable fees and costs incurred in
connection with the preparation and negotiation of this Agreement, the Rollover
Agreement and the Management Stockholders’ Agreement.

 

[signature page follows]

 

11

 

IN WITNESS
WHEREOF, the parties have executed this Agreement on the date and year first
above written.

 

 

	
   

  	
  TRANSDIGM
  HOLDING COMPANY

  
	
   

  
	
   

  	
  By:

  	
  /s/ Gregory
  Rufues

  	
   

  
	
   

  	
  Name:

  	
  Gregory
  Rufus

  
	
   

  	
  Title:

  	
  Vice
  President and Chief Financial Officer

  
	
   

  
	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  
	
   

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  W. Nicholas
  Howley

  
	
   

  	
  Address:

  
	
   

  
	
   

  	
  10494
  LakeShore Blvd.

  
	
   

  	
  Bratenahl,
  Ohio 44108

  
	
   

  
	
   

  
	
  Accepted and
  agreed to for purposes of Section 3(b) and acknowledged as to all (without
  any liability):

  
	
   

  
	
  Warburg
  Pincus Private Equity VIII, L.P.

  
	
   

  
	
  By:

  	
  Warburg
  Pincus & Co.

  
	
   

  	
  its general
  partner

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ David
  Barr

  	
   

  
	
   

  	
  Name:

  	
  David Barr

  
	
   

  	
  Title:

  	
  Partner

  
								

 

12

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