Document:

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                                                                   EXHIBIT 10.33

                       NOTE REGISTRATION RIGHTS AGREEMENT

                                      AMONG

                       MEDICAL DEVICE MANUFACTURING, INC.,

                           THE GUARANTORS NAMED HEREIN

                                       and

                           THE PURCHASERS NAMED HEREIN

                            Dated as of May 31, 2000

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                  NOTE REGISTRATION RIGHTS AGREEMENT (this "Agreement") dated as
of May 31, 2000 (the "Issue Date") among Medical Device Manufacturing, Inc., a
Colorado corporation (the "Company"), the guarantors named on the signature
pages hereto (the "Guarantors" and, together with the Company, the "Issuers")
and the purchasers named on the signature pages hereto (together with their
respective successors and assigns, the "Holders").

                  Capitalized terms not defined herein shall have the meanings
assigned such terms in the Securities Purchase Agreement (the "Securities
Purchase Agreement") dated as of May 31, 2000 among MDMI Holdings, Inc., a
Colorado corporation, the Company and the purchasers named therein. The term
"Guarantor" shall include any person executing a Guarantee after the Date of
Closing.

                  WHEREAS, the Company proposes to issue an aggregate principal
amount of $21,500,000 of its 13.5% Senior Subordinated Notes due 2007 (the
"Notes"), which will be unconditionally guaranteed on an unsecured senior
subordinated basis by the Guarantors (the "Guarantees").

                  NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein set forth, the parties hereto agree as follows:

                  SECTION 1. Registration Rights.

                  (a) Demand Registration.

                  (1) Request for Registration. At any time on or after the
earlier of (x) six months following an initial public offering of the Company
and (y) the fifth anniversary of the Issue Date, the Holder or Holders of in
excess of 25% of the aggregate principal amount of the outstanding Notes may
make a written request for registration under the Securities Act ("Demand
Registration") of all or part of its or their Registrable Securities; provided
that the Issuers shall not be obligated to effect more than two Demand
Registrations in respect of the Registrable Securities. Such request will
specify the number of Registrable Securities proposed to be sold and will also
specify the intended method of disposition thereof. Within 10

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Business Days after receipt of such request, the Company will give written
notice of such registration request to all other Holders of Notes and include in
such registration all Registrable Securities with respect to which the Company
has received written requests for inclusion therein from the Holders thereof
within 15 Business Days after receipt by the applicable Holder of the Company's
notice. Each such request will also specify the aggregate number of Registrable
Securities to be registered and the intended method of disposition thereof.
Unless the Holder or Holders of a majority in aggregate number of the
Registrable Securities to be registered in such Demand Registration shall
consent in writing, no other party, including the Company or any Guarantor (but
excluding another Holder of a Note), shall be permitted to offer securities
under any such Demand Registration.

                  (2) Effective Registration and Expenses. A registration will
not count as a Demand Registration until it has become effective (unless the
Holders demanding such registration withdraw the Registrable Securities, in
which case such demand will count as a Demand Registration unless the Holders of
such Registrable Securities agree to pay all Registration Expenses (as
hereinafter defined) relating to such registration). Except as provided above,
the Company will pay all Registration Expenses in connection with any
registration initiated as a Demand Registration, whether or not it becomes
effective.

                  (3) Priority on Demand Registrations. If the Holders of a
majority of the Registrable Securities to be registered in a Demand Registration
so elect, the offering of such Registrable Securities pursuant to such Demand
Registration shall be in the form of an underwritten offering. In such event, if
the managing underwriter or underwriters (the "Underwriters") of such offering
advise the Company and the Holders in writing that in their opinion the amount
of Registrable Securities requested to be included in such offering is
sufficiently large to materially and adversely affect the success of such
offering, then (i) the Holders of Registrable Securities shall be entitled to
participate in such Demand Registration (pro rata on the basis of the amount of
Registrable Securities requested to be included in such registration by each
such

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Holder) first; and (ii) the Company and other security holders of the Company
entitled to participate will be entitled to participate in such registration
(with the holders of such securities being entitled to participate in accordance
with the relative priorities, if any, as shall exist among them), in each case
with further pro rata allocations to the extent any such person has requested
registration of fewer securities than such person is entitled to have registered
so that the number of securities to be included in such registration will not
exceed the amount that can, in the opinion of such Managing Underwriter or
Underwriters, be sold without any such material adverse effect. To the extent in
excess of 25% of the Registrable Securities so requested to be registered are
excluded from the offering, the Holders of Registrable Securities, as a group,
shall have the right to one additional Demand Registration under this section
(but in no event shall such additional Demand Registration be for less than
$1,000,000 principal amount of Registrable Securities).

                  (4) Selection of Underwriters. If any Demand Registration is
in the form of an underwritten offering, the Holders of a majority of the
aggregate principal amount of the outstanding Registrable Securities shall
designate the Underwriter or a group of Underwriters to be utilized in
connection with the public offering of such Registrable Securities, which
selection shall be reasonably acceptable to the Company. The Company shall enter
into an underwriting agreement in customary form with such Underwriter or
Underwriters, which shall include, among other provisions, indemnities to the
effect and to the extent provided in Section 1(d) hereof. The holders of
Registrable Securities to be distributed by such Underwriters shall be parties
to such underwriting agreement and may, at their option, require that any or all
of the representations and warranties by, and the other agreements on the part
of, the Issuers to and for the benefit of such Underwriters also be made to and
for their benefit and that any and all of the conditions precedent to the
obligations of such Underwriters under such underwriting agreement also be
conditions precedent to their obligations. No holder of Registrable Securities
shall be required to make any representations or warranties to or agreements
with the Issuers or the Underwriters other than

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representations, warranties or agreements regarding such holder and its
ownership of the Registrable Securities being registered on its behalf and such
holder's intended method of distribution and any other representation required
by law.

                  (5) Deferral. Notwithstanding anything to the contrary
contained herein, the Issuers shall not be obligated to prepare and file, or
cause to become effective, any registration statement pursuant to this Section
1(a) at any time when, in the good faith judgment of the Company's Board of
Directors, the filing thereof at the time requested or the effectiveness thereof
after filing should be delayed to permit the Company to include in the
registration statement the Company's financial statements (and any required
audit opinion thereon) for the then immediately preceding fiscal year or fiscal
quarter, as the case may be. The filing of a registration statement by the
Company cannot be deferred pursuant to the provisions of the immediately
preceding sentence beyond the time that such financial statements (or any
required audit opinion thereon) would be required to be filed with the
Commission as part of the Company's Annual Report on Form 10-K or Quarterly
Report on Form 10-Q, as the case may be, if the Company were then obligated to
file such reports. Notwithstanding anything to the contrary contained herein,
the Issuers shall not be obligated to cause a registration statement previously
filed pursuant to this Section 1(a) to become effective, and may suspend sales
by the Holders of Registrable Securities under any registration that has
previously become effective, at any time when, in the good faith judgment of the
Company's Board of Directors, it reasonably believes that the effectiveness of
such registration statement or the offering of securities pursuant thereto would
materially adversely affect a pending or proposed acquisition, merger,
recapitalization, consolidation, reorganization or similar transaction or
negotiations, discussions or pending proposals with respect thereto; provided
that deferrals pursuant to this sentence shall not exceed, in the aggregate, 90
days in any calendar year. The filing of a registration statement, or any
amendment or supplement thereto, by the Company cannot be deferred, and the
rights of Holders of Registrable Securities to make sales pursuant to an
effective registration statement cannot be suspended, pursuant to the provisions
of

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the immediately preceding sentence for more than 15 days after the abandonment
or 30 days after the consummation of any of the foregoing proposals or
transactions or, in any event, for more than 30 days after the date of the
Company's Board of Directors' determination pursuant to the immediately
preceding sentence of this Section 1(a)(5). In no event shall the Holders be
entitled to request a Demand Registration (i) within 180 days from the
effectiveness of a registration statement filed pursuant to the exercise of a
Demand Registration Statement or (ii) within 60 days of the filing of any
registration statement by the Company under which the Holders would be entitled
to piggy-back registration rights hereunder.

                  (6) The Company agrees that after the Issue Date, it shall not
grant any Person registration rights of the type set forth in Section 1(a)
hereof with respect to any class of debt security of the Company without the
consent of the Holders of a majority in aggregate principal amount of the
Registrable Securities, which consent shall not be unreasonably withheld. The
Company and the Holders agree that the Holders shall be entitled to the consent
right set forth in the immediately preceding sentence so long as the Holders
continue to hold 50% of the Registrable Securities acquired by them on the Date
of Closing.

                  (b) Piggy-Back Registration.

                  (1) If the Company proposes to file a registration statement
under the Securities Act with respect to an offering by the Company for its own
account or for the account of any of its security holders of any class of debt
security, then the Company shall give written notice of such proposed filing to
the Holders of Registrable Securities as soon as practicable (but in no event
less than 20 Business Days before the anticipated filing date), and such notice
shall offer such Holders the opportunity to register such number of Registrable
Securities as each such Holder may request (a "Piggy-Back Registration").

                  (2) The Issuers shall use their best efforts to cause the
managing Underwriter or Underwriters of a proposed underwritten offering to
permit the Registrable Securities requested to be included in the registration
statement for such

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offering to be included on the same terms and conditions as any similar
securities of the Company or of such other security holders included therein.
Notwithstanding the foregoing, if the managing Underwriter or Underwriters of
such offering deliver a written opinion to the Company that either because of
(i) the kind or combination of securities which the Holders, the Company and any
other persons or entities intend to include in such offering or (ii) the size of
the offering which the Holders, the Company and such other persons intend to
make, are such that the success of the offering would be materially and
adversely affected by inclusion of the Registrable Securities requested to be
included, then (a) in the event that the size of the offering is the basis of
such managing Underwriter's opinion, the amount of securities to be offered for
the accounts of Non-Priority Persons (as defined below) shall be reduced pro
rata (according to the Registrable Securities and other securities proposed for
registration by Persons ("Non-Priority Persons") other than the Person or
Persons for whose account such registration was initially to be filed) to the
extent necessary to reduce the total amount of securities to be included in such
offering to the amount recommended by such managing Underwriter or Underwriters;
provided that if securities are being offered for the account of Non-Priority
Persons other than holders of Registrable Securities, then with respect to the
Registrable Securities intended to be offered by Holders, the proportion by
which the amount (taking into account the initial net proceeds to the Company on
issuance of such securities and not the face amount thereof) of such class of
securities intended to be offered by Holders is reduced shall not exceed the
proportion by which the amount of such class of securities intended to be
offered by Non-Priority Persons other than holders of Registrable Securities is
reduced; and (b) in the event that the kind (or combination) of securities to be
offered is the basis of such managing Underwriter's opinion, (x) the Registrable
Securities to be included in such offering shall be reduced as described in
clause (a) above (subject to the proviso in clause (a)) or (y) if the actions
described in clause (x) would, in the judgment of the managing Underwriter, be
insufficient to substantially eliminate the adverse effect that inclusion of the
Registrable Securities requested to be

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included would have on such offering, such Registrable Securities will be
excluded from such offering.

                  The Company will pay all Registration Expenses (as defined
herein) in connection with each registration of Registrable Securities.

                  (c) Registration Procedures.

                  If and whenever the Issuers are required to use their best
efforts to effect the registration of any Registrable Securities under the
Securities Act, the Issuers will promptly:

                  (1) prepare and file with the Securities and Exchange
         Commission a registration statement with respect to such securities,
         make all required filings with the NASD and use commercially reasonable
         efforts to cause such registration statement to become effective;

                  (2) prepare and file with the Securities and Exchange
         Commission such amendments and supplements to such registration
         statement and the prospectus used in connection therewith as may be
         necessary to keep such registration statement effective and to comply
         with the provisions of the Securities Act with respect to the
         disposition of all securities covered by such registration statement
         until such time as all of such securities have been disposed of in
         accordance with the intended methods of disposition by the seller or
         sellers thereof set forth in such registration statement, but in no
         event for a period of more than one year after such registration
         statement becomes effective;

                  (3) furnish to counsel (if any) elected by holders of a
         majority (by aggregate principal amount) of the Registrable Securities
         covered by such registration statement copies of all documents proposed
         to be filed with the Securities and Exchange Commission in connection
         with such registration, which documents will be subject to the review
         of such counsel;

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                  (4) furnish to each seller of such securities such number of
         conformed copies of such registration statement and of each such
         amendment and supplement thereto (in each case including all exhibits,
         except that none of the Issuers shall be obligated to furnish any
         seller of securities with more than two copies of such exhibits), such
         number of copies of the prospectus included in such registration
         statement (including such preliminary prospectus and any summary
         prospectus), in conformity with the requirements of the Securities Act,
         and such other documents, as such seller may reasonably request in
         order to facilitate the disposition of the securities owned by such
         seller;

                  (5) use its commercially reasonable efforts to register or
         qualify such securities covered by such registration statement under
         such other securities or Blue Sky Laws of such jurisdictions as each
         seller shall request, and do any and all other acts and things which
         may be necessary or advisable to enable such seller to consummate the
         disposition in such jurisdictions of the securities owned by such
         seller, except that none of the Issuers for any such purpose be
         required to qualify generally to do business as a foreign corporation
         in any jurisdiction wherein it is not so qualified, or to consent to
         general service of process in any such jurisdiction;

                  (6) furnish to each seller a signed counterpart, addressed to
         the sellers, of

                           (i) an opinion of counsel for the Company and the
                  Guarantors, dated the effective date of the registration
                  statement, reasonably satisfactory in form and substance to
                  such holders' counsel referred to in Section 1(c)(3) hereof,
                  and

                           (ii) subject to the accountants obtaining the
                  necessary representations as specified in Statement on
                  Auditing Standards No. 72, a "comfort" letter signed by the
                  independent public accountants who have certified the
                  Company's financial statements included in the registration
                  statement,

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                  covering substantially the same matters with respect to the
                  registration statement (and the prospectus included therein)
                  and, in the case of such accountants' letter, with respect to
                  changes subsequent to the date of such financial statements,
                  as are customarily covered in opinions of issuer's counsel and
                  in accountants' letters delivered to the Underwriters in
                  underwritten public offerings of securities;

                  (7) notify each seller of any securities covered by such
         registration statement, 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 any material fact required to be
         stated therein or necessary to make the statements therein not
         misleading in light of the circumstances then existing, and at the
         request of any such seller prepare and furnish to such seller a
         reasonable number of copies of a supplement to or an amendment of such
         prospectus as may be necessary so that, as thereafter delivered to the
         purchasers of such securities, such prospectus shall not include an
         untrue statement of a material fact or omit 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;

                  (8) otherwise use its commercially reasonable efforts to
         comply with all applicable rules and regulations of the Securities and
         Exchange Commission, and make available to its security holders, as
         soon as reasonably practicable, an earnings statement covering the
         period of at least twelve months, but not more than eighteen months,
         beginning with the first month after the effective date of the
         registration statement, which earnings statement shall satisfy the
         provisions of Section 11(a) of the Securities Act;

                  (9) in any underwritten offering, use its best efforts to
         cause the indemnity and contribution terms between the sellers and the
         Underwriters to be no more

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         burdensome to the sellers than the indemnity and contribution terms
         between the sellers and the Issuers set forth in Section 1(d) hereof;

                  (10) cause the Senior Subordinated Note Indenture relating to
         the Securities to be qualified under the Trust Indenture Act of 1939,
         as amended; and

                  (11) promptly notify each Holder and the Underwriter or
         Underwriters, if any:

                           (i) when such registration statement or any
                  prospectus used in connection therewith, or any amendment or
                  supplement thereto, has been filed and, with respect to such
                  registration statement or any post-effective amendment
                  thereto, when the same has become effective;

                           (ii) of any written comments from the Securities and
                  Exchange Commission with respect to any filing referred to in
                  clause (i) above and of any written request by the Securities
                  and Exchange Commission for amendments or supplements to such
                  registration statement or prospectus;

                           (iii) of the notification to any Issuer by the
                  Securities and Exchange Commission of its initiation of any
                  proceeding with respect to the issuance by the Securities and
                  Exchange Commission of, or of the issuance by the Securities
                  and Exchange Commission of, any stop order suspending the
                  effectiveness of such registration statement; and

                           (iv) of the receipt by any Issuer of any notification
                  with respect to the suspension of the qualification of any
                  Registrable Securities for sale under the applicable
                  securities or blue sky laws of any jurisdiction.

                  The Company may require each seller of any securities as to
which any registration is being effected to furnish to the Company such
information regarding such seller and the

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distribution of such securities as the Company may from time to time reasonably
request in writing and as shall be required by law in connection therewith. Each
such holder agrees to furnish promptly to the Company all information required
to be disclosed in order to make the information previously furnished to the
Company by such holder not materially misleading.

                  By acquisition of Registrable Securities, each holder of such
Registrable Securities shall be deemed to have agreed that upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 1(c)(7) hereof, such holder will promptly discontinue such holder's
disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such holder's receipt of the copies
of the supplemented or amended prospectus contemplated by Section 1(c)(7)
hereof. If so directed by the Company, each holder of Registrable Securities
will deliver to the Company (at the Company's expense) all copies, other than
permanent file copies, then in such holder's possession of the prospectus
covering such Registrable Securities current at the time of receipt of such
notice. In the event the Company shall give any such notice, the period
mentioned in Section 1(c)(2) hereof shall be extended by the number of days
during the period from and including the date of the giving of such notice to
and including the date when each seller of any Registrable Securities covered by
such registration statement shall have received the copies of the supplemented
or amended prospectus contemplated by Section 1(c)(7) hereof.

                  In connection with any underwritten offering, all Registrable
Securities to be included in such registration shall be subject to the related
underwriting agreement and no person may participate in such registration unless
such person agrees to sell such person's securities on the basis provided in the
underwriting arrangement approved by the persons for whose account such
underwritten registration is initially filed and completes and executes all
customary questionnaires, indemnities, underwriting agreements and other
reasonable documents which must be executed under the terms of such underwriting
arrangements.

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                  (d) Indemnification and Contribution.

                  (1) Indemnification. Each of the Company and the Guarantors,
jointly and severally, agrees to indemnify and hold harmless each Holder of
Registrable Securities, its officers, directors, employees and agents and each
Person who controls such Holder within the meaning of either Section 15 of the
Securities Act or Section 20(a) of the Exchange Act (each such person being
sometimes hereinafter referred to as an "Indemnified Holder") from and against
all losses, claims, damages, liabilities and expenses (including reasonable
costs of investigation and legal expenses) arising out of or based upon any
untrue statement or alleged untrue statement of a material fact contained in any
registration statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or based upon any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except insofar as such
losses, claims, damages, liabilities or expenses arise out of or are based upon
any such untrue statement or omission or allegation thereof based upon
information relating to such Indemnified Holder and furnished in writing to the
Company by such Indemnified Holder expressly for use therein. This indemnity
will be in addition to any liability which the Company may otherwise have.

                  If any action or proceeding (including any governmental
investigation or inquiry) shall be brought or asserted against an Indemnified
Holder in respect of which indemnity may be sought from the Company or any
Guarantor, such Indemnified Holder shall promptly notify the Company in writing,
and the Company or such Guarantor shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to such Indemnified Holder and
the payment of all expenses. Such Indemnified Holder shall have the right to
employ separate counsel in any such action and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Holder except that the Company or such Guarantor shall be
responsible for the reasonable fees and expenses of such counsel if (but only
if) (a) the Company or such Guarantor has agreed to pay such fees and expenses
or

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(b) the Company or such Guarantor shall have failed to assume the defense of
such action or proceeding and has failed to employ counsel reasonably
satisfactory to such Indemnified Holder in any such action or proceeding or (c)
the named parties to any such action or proceeding (including any impleaded
parties) include both such Indemnified Holder and the Company or such Guarantor,
and there are one or more legal defenses available to such Indemnified Holder
which are different from or additional to those available to the Company or such
Guarantor (in which case, if such Indemnified Holder notifies the Company in
writing that it elects to employ separate counsel at the expense of the Company
or such Guarantor, the Company or such Guarantor shall not have the right to
assume the defense of such action or proceeding on behalf of such Indemnified
Holder, it being understood, however, that the Company or such Guarantor shall
not, in connection with any one such action or proceeding or separate but
substantially similar or related actions or proceedings in the same jurisdiction
arising out of the same general allegations or circumstances, be liable for the
fees and expenses of more than one separate firm of attorneys at any time for
such Indemnified Holder and any other Indemnified Holders, which firm shall be
designated in writing by such Indemnified Holders). The Company or such
Guarantor shall not be liable for any settlement of any such action or
proceeding effected without its written consent, but if settled with its written
consent, or if there be a final judgment for the plaintiff in any such action or
proceeding, the Company or such Guarantor agrees to indemnify and hold harmless
such Indemnified Holders from and against any loss or liability by reason of
such settlement or judgment.

                  (2) Contribution. If the indemnification provided for in
Section 1(d)(1) hereof is unavailable to an Indemnified Holder in respect of any
losses, claims, damages, liabilities or expenses referred to therein, then the
Issuers, in lieu of indemnifying such Indemnified Holder, shall contribute to
the amount paid or payable by such Indemnified Holder as a result of such
losses, claims, damages, liabilities or expenses in such proportion as is
appropriate to reflect the relative fault of the Issuers on the one hand and of
the Indemnified Holder on the other in connection with the statements or
omissions which

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resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative fault of the Issuers
on the one hand and of the Indemnified Holder on the other 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 Company or by the
Indemnified Holder and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include,
subject to the limitations set forth in the second paragraph of Section 1(d)(1)
hereof, any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim.

                  The Issuers and each Holder of Registrable Securities agree
that it would not be just and equitable if contribution pursuant to this Section
1(d)(2) were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in the immediately preceding paragraph. Notwithstanding the provisions of
this Section 1(d)(2), an Indemnified Holder shall not be required to contribute
any amount in excess of the amount by which the total net proceeds received by
such Indemnified Holder or its affiliated Indemnified Holders from the sale to
the public of Registrable Securities exceeds the amount of any damages which
such Indemnified Holder, or its affiliated Indemnified Holders, has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

                  (3) Certain Definitions.

                           (i) "Business Day" means any day other than a
                  Saturday, a Sunday or a day on which banking institutions in

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                  The City of New York are authorized by law, regulation or
                  executive order to remain closed.

                           (ii) "Registrable Securities" means the Notes and
                  Guarantees and any other securities issued or issuable in
                  exchange for the Notes and Guarantees. As to any particular
                  Registrable Securities, once issued such securities shall
                  cease to be Registrable Securities after (A) a registration
                  statement with respect to the sale of such securities shall
                  have become effective under the Securities Act and such
                  securities shall have been disposed of in accordance with such
                  registration statement, (B) they shall have been distributed
                  to the public pursuant to Rule 144 (or any successor
                  provision) under the Securities Act, (C) the third anniversary
                  of an initial public offering of the Company, so long as
                  disposition of them shall not require registration or
                  qualification of them under the Securities Act or any similar
                  state law then in force, or (D) they shall have ceased to be
                  outstanding.

                           (iii) "Registration Expenses" means all expenses
                  incident to the Issuers' performance of or compliance with
                  Section 1 hereof, including, without limitation, all
                  registration and filing fees, all fees and expenses of
                  complying with securities or blue sky laws, fees and other
                  expenses associated with filings with the National Association
                  of Securities Dealers, Inc. (including, if required, the
                  reasonable fees and expenses of any "qualified independent
                  underwriter" and its counsel), all printing expenses, the fees
                  and disbursements of counsel for the Company and the
                  Guarantors and of the Company's independent public
                  accountants, the fees and disbursements of one counsel
                  retained by the holders of Registrable Securities, the
                  expenses of any special audits made by such accountants
                  required by or incident to such performance and compliance,
                  but not including (a) fees and disbursements of more than one
                  counsel retained by the holders of Registrable Securities, or
                  (b) such holders' proportionate share of underwriting
                  discounts and commissions.

                  SECTION 2. Notices to Issuers and Note Holders. Any notice or
demand authorized by this Agreement to be given or

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made by the registered holder of any Note to or on the Issuers shall be
sufficiently given or made when and if deposited in the mail, first class or
registered, postage prepaid, addressed to the office of the Company expressly
designated by the Company at its office for purposes of this Agreement (until
the Note holders are otherwise notified in accordance with this Section by the
Company), as follows:

                           MEDICAL DEVICE MANUFACTURING, INC.
                           c/o MDMI Holdings, Inc.
                           200 West 7th Avenue
                           Collegeville, PA  19426
                           Facsimile:  (610) 409-2470
                           Attention:  Andrew D. Freed

                           with a copy to:

                           KRG Capital Partners, LLC
                           The Park Central Building
                           1515 Arapahoe Street
                           Tower One, Suite 1500
                           Denver, CO  80202
                           Facsimile:  (303) 390-5015
                           Attention:  Bruce L. Rogers

                  Any notice pursuant to this Agreement to be given by the
Issuers to the registered holder(s) of any Note shall be sufficiently given when
and if deposited in the mail, first class or registered, postage prepaid,
addressed (until the Company is otherwise notified in accordance with this
Section by such holder) to such holder at the address appearing on the Note
register of the Company.

                  SECTION 3. Supplements and Amendments. This Agreement may not
be amended without the consent of the Issuers and each Holder of Notes.

                  SECTION 4. Successors. All the covenants and provisions of
this Agreement by or for the benefit of the Issuers shall bind and inure to the
benefit of their respective successors and assigns hereunder.

<PAGE>   18
                                      -17-

                  SECTION 5. Termination. This Agreement (except for Section
1(d)) shall terminate at 5:00 p.m., New York City time, on June 1, 2007.

                  SECTION 6. Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE
A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND FOR ALL PURPOSES
SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF SAID STATE.

                  SECTION 7. Benefits of This Agreement. Nothing in this
Agreement shall be construed to give to any person or corporation other than the
Issuers and the registered holders of the Notes any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Issuers and the registered holders of the Notes.
Nothing herein shall prohibit or limit the Company or any Guarantor from
entering into an agreement providing holders of securities which may hereafter
be issued by the Company or such Guarantor with such registration rights
exercisable at such time or times and in such manner as the Board of Directors
of the Company shall deem in the best interests of the Company so long as the
performance by the Company or such Guarantor of its obligations under such other
agreement will not cause the Issuers to breach their obligations hereunder to
the Holders.

                  SECTION 8. Counterparts. This Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

<PAGE>   19

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

                               COMPANY

                               MEDICAL DEVICE MANUFACTURING, INC.

                               By: /s/ BRUCE L. ROGERS
                                  -------------------------------------
                                   Name: Bruce L. Rogers
                                   Title: Vice President

                               GUARANTORS

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

                               By: /s/ BRUCE L. ROGERS
                                  -------------------------------------
                                   Name: Bruce L. Rogers
                                   Title: Vice President

                               MEDICAL ENGINEERING RESOURCES,
                               LTD.

                               By: /s/ BRUCE L. ROGERS
                                  -------------------------------------
                                   Name: Bruce L. Rogers
                                   Title: Vice President

                               NOBLE-MET, LTD.

                               By: /s/ BRUCE L. ROGERS
                                  -------------------------------------
                                   Name: Bruce L. Rogers
                                   Title: Vice President

                               UTI CORPORATION

                               By: /s/ BRUCE L. ROGERS
                                  -------------------------------------
                                   Name: Bruce L. Rogers
                                   Title: Vice President

<PAGE>   20

                             UTI ACQUISITION CORP.

                             By: /s/ BRUCE L. ROGERS
                                -------------------------------------
                                 Name: Bruce L. Rogers
                                 Title: Vice President

                             SPECTRUM MANUFACTURING, INC.

                             By: /s/ BRUCE L. ROGERS
                                -------------------------------------
                                 Name: Bruce L. Rogers
                                 Title: Vice President

<PAGE>   21

                             PURCHASERS

                             DLJ INVESTMENT PARTNERS II, L.P.

                             By:    DLJ INVESTMENT PARTNERS II,
                                     INC., as managing general
                                     partner

                             By: /s/ IVY DODES
                                -------------------------------------
                                 Name: Ivy Dodes
                                 Title: Vice President

                             DLJ INVESTMENT FUNDING II, INC.

                             By: /s/ IVY DODES
                                -------------------------------------
                                 Name: Ivy Dodes
                                 Title: Vice President

                             DLJ ESC II L.P.

                             By:    DLJ LBO PLANS MANAGEMENT
                                     CORPORATION, as general
                                     partner

                             By: /s/ IVY DODES
                                -------------------------------------
                                 Name: Ivy Dodes
                                 Title: Vice President

                             DLJ INVESTMENT PARTNERS, L.P.

                             By:    DLJ INVESTMENT PARTNERS, INC.,
                                     as managing general partner

                             By: /s/ IVY DODES
                                -------------------------------------
                                 Name: Ivy Dodes
                                 Title: Vice President

                             RELIASTAR FINANCIAL CORP.

                             By: /s/ MARK S. JORDAHL
                                -------------------------------------
                                 Name: Mark S. Jordahl
                                 Title: Senior Vice President<PAGE>   1
                                                                   EXHIBIT 10.34

                             ANTI-DILUTION AGREEMENT

                                      AMONG

                               MDMI HOLDINGS, INC.

                                       and

                            the parties named herein

                            Dated as of May 31, 2000

<PAGE>   2

                              TABLE OF CONTENTS(1)

<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                          ----

<S>                                                                                                     <C>
SECTION 1.            Reservation of Shares................................................................1
SECTION 2.            Payment of Taxes.....................................................................2
SECTION 3.            Obtaining Stock Exchange Listings....................................................2
SECTION 4.            Adjustment of Number of Preferred Shares.............................................3
SECTION 5.            Fractional Interests................................................................12
SECTION 6.            Notices to Holders..................................................................12
SECTION 7.            Notices to Company and Holders......................................................13
SECTION 8.            Supplements and Amendments..........................................................13
SECTION 9.            Successors..........................................................................13
SECTION 10.           Termination.........................................................................13
SECTION 11.           Governing Law.......................................................................14
SECTION 12.           Benefits of This Agreement..........................................................14
SECTION 13.           Counterparts........................................................................14
</TABLE>

--------
(1)      This Table of Contents does not constitute a part of this Agreement or
         have any bearing upon the interpretation of any of its terms or
         provisions.

<PAGE>   3

                  ANTI-DILUTION AGREEMENT (the "Anti-Dilution Agreement" or this
"Agreement") dated as of May 31, 2000 (the "Issue Date") between MDMI Holdings,
Inc., a Colorado corporation (the "Company"), and the parties named herein
(together with their successors and assigns, the "Holders").

                  Terms defined in the Securities Purchase Agreement (the
"Securities Purchase Agreement") dated as of May 31, 2000 among the Company,
Medical Device Manufacturing, Inc., a Colorado corporation and a wholly owned
subsidiary of the Company ("MDM"), the guarantors named therein (the
"Guarantors") and the purchasers named therein (the "Purchasers") unless defined
herein are used as therein defined.

                  WHEREAS, the Company proposes to issue shares (the "Preferred
Shares") of Class AA Convertible Preferred Stock, as hereinafter described (the
"Convertible Preferred Stock"), to purchase up to 5% of the fully diluted common
equity of the Company (which is the sum of the total number of shares of Common
Stock (the "Common Stock") of the Company and the total number of shares of
Common Stock into which securities of the Company are convertible and
outstanding on the Issue Date) (the Common Stock issuable on exercise of the
Preferred Shares being referred to herein as the "Convertible Shares") in
connection with a private placement of the Company's Senior Notes due 2008, each
Preferred Share entitling the holder thereof to acquire one Convertible Share;
and

                  WHEREAS, the Company proposes to issue shares of Preferred
Shares to purchase up to 3% of the fully diluted common equity of the Company in
connection with a private placement of MDM's 13.5% Senior Subordinated Notes due
2007, unconditionally guaranteed on an unsecured senior subordinated basis by
each of the Guarantors, each Preferred Share entitling the holder thereof to
acquire one Convertible Share.

                  NOW, THEREFORE, in consideration of the premises and the
mutual agreements herein set forth, the parties hereto agree as follows:

                  SECTION 1. Reservation of Shares. (a) The Company or, if
appointed, the transfer agent for the Company's capital

<PAGE>   4
                                      -2-

stock (the "Transfer Agent") and every subsequent transfer agent for any shares
of the Company's capital stock will be irrevocably authorized and directed at
all times to reserve such number of authorized shares as shall be required for
the purpose of issuing additional Convertible Preferred Shares upon adjustments
pursuant to Section 4 hereof. The Company will keep a copy of this Agreement on
file with the Transfer Agent and with every subsequent transfer agent for any
shares of the Company's capital stock. The Company will furnish such Transfer
Agent a copy of all notices of adjustments and certificates related thereto,
transmitted to each Holder pursuant to Section 7 hereof.

                  The Company covenants that all Preferred Shares which may be
issued and paid for as provided in the Securities Purchase Agreement will, upon
issue, be fully paid, nonassessable, free of preemptive rights and free from all
taxes, liens, charges and security interests with respect to the issue thereof.

                  (b) The Company will at all times reserve and keep available,
free from preemptive rights, out of the aggregate of its authorized but unissued
Common Stock or its authorized and issued Common Stock held in its treasury, for
the purpose of enabling it to satisfy any obligation to issue Convertible Shares
upon conversion of Preferred Shares, the maximum number of shares of Common
Stock which may then be deliverable upon the exercise of all outstanding
Convertible Preferred Shares.

                  SECTION 2. Payment of Taxes. The Company will pay all
documentary stamp taxes attributable to the initial issuance of Preferred
Shares, and Convertible Shares upon the exercise of Preferred Shares.

                  SECTION 3. Obtaining Stock Exchange Listings. The Company will
from time to time take all action which may be necessary so that the Convertible
Shares, immediately upon their issuance upon the exercise of the Preferred
Shares, will be listed on the principal securities exchanges and markets within
the United States of America, if any, on which other shares of Common Stock are
then listed.

<PAGE>   5
                                      -3-

                  SECTION 4. Adjustment of Number of Preferred Shares. In the
event an adjustment is required under the terms of this Section 4, each Holder
of Shares shall have the right (the "Adjustment Right") to purchase, at a price
equal to their par value, any or all of that number of Preferred Shares
determined pursuant to the formulas set out in this Section 4. For purposes of
this Section 4, "Common Stock" means shares now or hereafter authorized of any
class of common stock of the Company and any other stock of the Company, however
designated, that has the right (subject to any prior rights of any class or
series of preferred stock) to participate in any distribution of the assets or
earnings of the Company without preference or limit as to per share amount, and
"Preferred Shares", if the Company has no outstanding shares of preferred stock
at the time as a result of a mandatory conversion of all shares of preferred
stock by the Company, means the Convertible Shares until such Convertible Shares
cease to be Registrable Shares (as defined in the Second Amended and Restated
Registration Rights Agreement dated as of May 31, 2000 among the Company, KRG
Capital Fund I, L.P., KRG Capital Fund I (FF), L.P., KRG Capital Fund I (PA),
L.P., KRG Co-Investment, L.L.C., the Purchasers and the other Holders listed on
Schedule I thereto, except that clause (ii) shall be inapplicable). Any
securities acquired by a Holder of Preferred Shares pursuant to the adjustment
provisions set forth below shall constitute Preferred Shares for purposes of
this Agreement.

                  (a) Adjustment for Common Stock Issue.

                  If the Company issues shares of Common Stock for a
consideration per share less than the current market price per share on the date
the Company fixes the offering price of such additional shares, the number of
Preferred Shares which would be held by a Holder of Preferred Shares upon
exercise in full of such Holder's Adjustment Right shall be determined in
accordance with the formula:

                                      N' = N  x   A
                                                -----
                                                O + P
                                                    -
                                                    M

<PAGE>   6
                                      -4-

where:

         N'   =   the adjusted number of Preferred Shares which would be held
                  by such Holder upon exercise in full of such Holder's
                  Adjustment Right.

         N    =   the then current number of Preferred Shares held by such
                  Holder.

         O    =   the number of shares of Common Stock outstanding on a fully
                  diluted basis immediately prior to the issuance of such
                  additional shares.

         P    =   the aggregate consideration received for the issuance of
                  such additional shares.

         M    =   the current market price per share of Common Stock on the
                  date of sale of such additional shares.

         A    =   the number of shares of Common Stock outstanding on a fully
                  diluted basis immediately prior to the issuance of such
                  additional shares, plus the number of shares issued in
                  connection with such issuance.

                  The adjustment shall be made successively whenever any such
issuance is made, and shall become effective immediately after such issuance.

                  This subsection (a) does not apply to:

                  (1) the conversion or exchange of securities convertible or
         exchangeable for Common Stock,

                  (2) Common Stock issued to shareholders of any person which
         merges into the Company, or with a subsidiary of the Company, in
         connection with the acquisition of such person, or

                  (3) Common Stock issued in a bona fide public offering
         pursuant to a firm commitment underwriting.

<PAGE>   7
                                      -5-

                  (b) Adjustment for Convertible Securities Issue.

                  If the Company issues any securities convertible into or
exchangeable for Common Stock for a consideration per share of Common Stock
initially deliverable upon conversion or exchange of such securities less than
the current market price per share on the date of issuance of such securities,
the number of Preferred Shares which would be held by a Holder of Preferred
Shares upon exercise in full of such Holder's Adjustment Right shall be
determined in accordance with this formula:

<PAGE>   8
                                      -6-

                                      N' = N  x   O + D
                                                 --------
                                                  O + P
                                                    -----
                                                    M x C

where:

         N'   =   the adjusted number of Preferred Shares which would be held
                  by such Holder upon exercise in full of such Holder's
                  Adjustment Right.

         N    =   the then current number of Preferred Shares held by such
                  Holder.

         O    =   the number of shares of Common Stock outstanding on a fully
                  diluted basis immediately prior to the issuance of such
                  securities.

         P    =   the aggregate consideration received for the issuance of
                  such securities.

         M    =   the current market price per share of Common Stock on the
                  date of sale of such securities.

         D    =   the maximum number of shares of Common Stock deliverable
                  upon conversion or in exchange for such securities at the
                  initial conversion or exchange rate.

         C    =   the maximum number of shares of Common Stock into which one
                  share of each such security is convertible into.

                  The adjustment shall be made successively whenever any such
issuance is made, and shall become effective immediately after such issuance.

                  If all of the Common Stock deliverable upon conversion or
exchange of such securities have not been issued when such securities are no
longer outstanding, then the number of Preferred Shares shall promptly be
readjusted to the number of Preferred Shares which would then be in effect had
the adjustment upon the issuance of such securities been made on the basis of
the actual number of shares of Common Stock issued upon conversion or exchange
of such securities.

<PAGE>   9
                                      -7-

                  This subsection (b) does not apply to:

                  (1) convertible securities issued to shareholders of any
         person which merges into the Company, or with a subsidiary of the
         Company, in connection with the acquisition of such person; provided
         that such securities are substantially similar to the Class A-1
         Convertible Preferred Stock of the Company (except as to liquidation
         preference),

                  (2) convertible securities issued in a bona fide public
         offering pursuant to a firm commitment underwriting,

                  (3) convertible securities issued as dividends on the
         Company's Class A-1 5% Convertible Preferred Stock or such other
         classes of the Company's convertible preferred stock; provided that
         such other convertible preferred stock and convertible securities
         issued as dividends thereon shall have substantially similar terms to
         the Class A-1 5% Convertible Preferred Stock other than with respect to
         liquidation preference thereon; provided, further, that this clause (3)
         shall not apply to such dividends paid in excess of 5% per annum,

                  (4) the issuance of convertible securities substantially
         similar to the Company's Class B-1 Convertible Preferred Stock;
         provided that no such securities are issued to a person who was a
         shareholder or an affiliate of the Company prior to such issuance, or

                  (5) options granted to the Company' employees under bona fide
         employee benefit plans adopted by the Board of Directors and approved
         by the holders of Common Stock when required by law (but only to the
         extent that the aggregate number of options excluded hereby and granted
         on or after Issue Date shall not exceed 10% of the Common Stock
         outstanding on a fully diluted basis on the Issue Date, exclusive of
         antidilution adjustments thereunder),

<PAGE>   10
                                      -8-

                  (c) Current Market Price.

                  In subsections (a) and (b) of this Section 4, the current
market price per share of Common Stock on any date is the average of the Quoted
Prices of the Common Stock for 30 consecutive trading days commencing 45 trading
days before the date in question. The "Quoted Price" of the Common Stock is the
last reported sales price of the Common Stock as reported by NASDAQ, National
Market System, or if the Common Stock is listed on a securities exchange, the
last reported sales price of the Common Stock on such exchange which shall be
for consolidated trading if applicable to such exchange, or if neither so
reported or listed, the last reported bid price of the Common Stock. In the
absence of one or more such quotations, the Board of Directors of the Company
shall determine the current market price (i) based on the most recently
completed arm's-length transaction between the Company and a person other than
an Affiliate of the Company and the closing of which occurs on such date or
shall have occurred within the six months preceding such date, (ii) if no such
transaction shall have occurred on such date or within such six-month period,
the value of the security most recently determined as of a date within the six
months preceding such date by a nationally recognized investment banking firm or
appraisal firm which is not an Affiliate of the Company (an "Independent
Financial Advisor") or (iii) if neither clause (i) nor (ii) is applicable, the
value of the security determined as of such date by an Independent Financial
Advisor.

                  (d) Consideration Received.

                  For purposes of any computation respecting consideration
received pursuant to subsections (a) and (b) of this Section 4, the following
shall apply:

                  (1) in the case of the issuance of shares of Common Stock for
         cash, the consideration shall be the amount of such cash, provided that
         in no case shall any deduction be made for any commissions, discounts
         or other expenses incurred by the Company for any underwriting of the
         issue or otherwise in connection therewith;

<PAGE>   11
                                      -9-

                  (2) in the case of the issuance of shares of Common Stock for
         a consideration in whole or in part other than cash, the consideration
         other than cash shall be deemed to be the fair market value thereof as
         determined in good faith by the Board of Directors (irrespective of the
         accounting treatment thereof), whose determination shall be described
         in a Board resolution;

                  (3) in the case of the issuance of securities convertible into
         or exchangeable for shares, the aggregate consideration received
         therefor shall be deemed to be the consideration received by the
         Company for the issuance of such securities plus the additional minimum
         consideration, if any, to be received by the Company upon the
         conversion or exchange thereof (the consideration in each case to be
         determined in the same manner as provided in clauses (1) and (2) of
         this subsection).

                  (e) When De Minimis Adjustment May Be Deferred.

                  No adjustment in the number of Preferred Shares need be made
unless the adjustment would require an increase or decrease of at least 1% in
the number of Preferred Shares held by each Holder. Any adjustments that are not
made shall be carried forward and taken into account in any subsequent
adjustment.

                  All calculations under this Section shall be made to the
nearest 1/100th of a share.

                  (f) When No Adjustment Required.

                  No adjustment need be made for a change in the par value or no
par value of the Common Stock.

                  (g) Notice of Adjustment.

                  Whenever the number of Preferred Shares may be adjusted, the
Company shall provide notice to the Holder as set forth in Section 6 hereof.

<PAGE>   12
                                      -10-

                  (h) No Dilution or Impairment.

                  If any event shall occur as to which the provisions of this
Section 4 are not strictly applicable but the failure to make any adjustment
would adversely affect the Adjustment Rights represented by the Preferred Shares
in accordance with the essential intent and principles of this Section, then, in
each such case, the Company shall appoint an investment banking firm of
recognized national standing, or any other financial expert that does not (or
whose directors, officers, employees, affiliates or stockholders do not) have a
direct or material indirect financial interest in the Company or any of its
subsidiaries, who has not been, and, at the time it is called upon to give
independent financial advice to the Company, is not (and none of its directors,
officers, employees, affiliates or stockholders are) a promoter, director or
officer of the Company or any of its subsidiaries, which shall give their
opinion upon the adjustment, if any, on a basis consistent with the essential
intent and principles established in this Section 4, necessary to preserve,
without dilution, the purchase rights represented by the Preferred Shares. Upon
receipt of such opinion, the Company will promptly mail a copy thereof to the
holders of the Preferred Shares and shall make the adjustments described
therein.

                  The Company will not, by amendment of its certificate of
incorporation or through any consolidation, merger, reorganization, transfer of
assets, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of the
Preferred Shares, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the holder of the Preferred Shares
against dilution or other impairment. Without limiting the generality of the
foregoing, the Company (1) will take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and nonassessable shares of Common Stock on the exercise of the Preferred Shares
from time to time outstanding and (2) will not take any action which results in
any adjustment of the number of Preferred Shares if the total number of
Preferred Shares, or Convertible Shares

<PAGE>   13
                                      -11-

issuable after the action upon the exercise of all of the Preferred Shares,
would exceed the total number of Preferred Shares or shares of Common Stock, as
the case may be, then authorized by the Company's certificate of incorporation
and available for the purposes of issue.

                  (i) Reorganization of Company.

                  If the Company consolidates or merges with or into, or
transfers or leases all or substantially all its assets to, any person, upon
consummation of such transaction the Adjustment Right shall automatically become
exercisable for the kind and amount of securities, cash or other assets which
the Holder of Preferred Shares would have owned immediately after the
consolidation, merger, transfer or lease if the Holder had exercised the
Adjustment Right immediately before the effective date of the transaction.
Concurrently with the consummation of such transaction, the corporation formed
by or surviving any such consolidation or merger if other than the Company, or
the person to which such sale or conveyance shall have been made, shall enter
into a supplemental Agreement so providing and further providing for adjustments
which shall be as nearly equivalent as may be practical to the adjustments
provided for in this Agreement. The successor company shall mail to Holders of
Preferred Shares a notice describing the supplemental Agreement.

                  If the issuer of securities deliverable upon exercise of
Adjustment Rights under the supplemental Agreement is an affiliate of the
formed, surviving, transferee or lessee corporation, that issuer shall join in
the supplemental Agreement.

                  If this subsection (i) applies, subsections (a) and (b) of
this Section 4 do not apply.

                  (j) Exercise of Adjustment Right.

                  In the event that a Holder of Preferred Shares is granted an
Adjustment Right pursuant to this Section 4, such Holder shall have 30 days from
the later of the date of any action requiring an adjustment and the date notice
of such action is provided pursuant to Section 6 hereof to exercise such

<PAGE>   14
                                      -12-

Adjustment Right. Any Adjustment Right may be exercised by delivery of a notice
to the Company a certified check payable to the order of the Company in an
amount equal to the aggregate par value of the additional Preferred Shares to be
issued to such Holder pursuant to its exercise of the Adjustment Right. Upon
delivery of such Notice, such payment, the Company shall promptly cause the
additional Preferred Shares to be issued and delivered to such Holder or to
another person or address specified in writing by such Holder.

                  SECTION 5. Fractional Interests. Any Adjustment Rights may be
exercised in full or in part; provided that the Company shall not be required to
issue fractional Preferred Shares on the exercise of Adjustment Rights. If more
than one Adjustment Right shall be exercised at the same time by the same
Holder, the number of full Preferred Shares which shall be issuable upon the
exercise thereof shall be computed on the basis of the aggregate number of
Preferred Shares purchasable on exercise of the Adjustment Rights so requested
to be exercised. If any fraction of a Preferred Share would, except for the
provisions of this Section 5, be issuable on the exercise of any Adjustment
Rights (or specified portion thereof), the Company shall pay an amount in cash
equal to the product of (i) such fraction of an Adjustment Right Preferred Share
and (ii) the current market price of a share of Preferred Stock.

                  SECTION 6. Adjustment Right Notices to Holders. Upon any event
which may require adjustment of the number of Preferred Shares pursuant to
Section 4, the Company shall promptly thereafter (i) cause to be filed with the
Company a certificate which includes the report of a firm of independent public
accountants of recognized standing selected by the Board of Directors of the
Company (who may be the regular auditors of the Company) setting forth the
number of Preferred Shares issuable upon exercise of the Adjustment Right in
respect of each Preferred Share and setting forth in reasonable detail the
method of calculation and the facts upon which such calculations are based,
which certificate shall be conclusive evidence of the correctness of the matters
set forth therein, and (ii) cause to be given to each of the registered Holders
of the Preferred Shares at his or her address appearing on the share register
written notice of such adjustments by first-class mail,

<PAGE>   15
                                      -13-

postage prepaid. Where appropriate, such notice may be given in advance and
included as a part of the notice required to be mailed under the other
provisions of this Section 7.

                  SECTION 7. Notices to Company and Holders. Any notice or
demand authorized by this Agreement to be given or made by the registered holder
of any Preferred Share to or on the Company shall be sufficiently given or made
when and if deposited in the mail, first class or registered, postage prepaid,
addressed to the office of the Company expressly designated by the Company at
its office for purposes of this Agreement (until the Holders are otherwise
notified in accordance with this Section by the Company), as follows:

                           MDMI Holdings, Inc.
                           200 West 7th Avenue
                           Collegeville, Pennsylvania  19426
                           Facsimile:  (610) 409-2470
                           Attention:  Chief Financial Officer

                  Any notice pursuant to this Agreement to be given by the
Company to the registered holder(s) of any Preferred Share shall be sufficiently
given when and if deposited in the mail, first class or registered, postage
prepaid, addressed (until the Company is otherwise notified in accordance with
this Section by such holder) to such holder at the address appearing on the
Preferred Share register of the Company.

                  SECTION 8. Supplements and Amendments. The Company may from
time to time supplement or amend this Agreement with the written consent of
Holders of a majority of the then outstanding Preferred Shares and Convertible
Shares.

                  SECTION 9. Successors. All the covenants and provisions of
this Agreement by or for the benefit of the Company and the Holders shall bind
and inure to the benefit of their respective successors and assigns hereunder.

                  SECTION 10. Termination. This Agreement shall terminate at
5:00 p.m., New York City time on June 1, 2010.

<PAGE>   16
                                      -14-

                  SECTION 11. Governing Law. THIS AGREEMENT SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND FOR ALL PURPOSES
SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF SAID STATE.

                  SECTION 12. Benefits of This Agreement. Nothing in this
Agreement shall be construed to give to any person or corporation other than the
Company and the registered holders of the Preferred Shares any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall
be for the sole and exclusive benefit of the Company and the registered holders
of the Preferred Shares and the Preferred Shares. Nothing herein shall prohibit
or limit the Company from entering into an agreement providing holders of
securities which may hereafter be issued by the Company with such registration
rights exercisable at such time or times and in such manner as the Board of
Directors shall deem in the best interests of the Company so long as the
performance by the Company of its obligations under such other agreement will
not cause the Company to breach its obligations hereunder to the Holders.

                  SECTION 13. Counterparts. This Agreement may be executed in
any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

<PAGE>   17

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

                                  MDMI HOLDINGS, INC.

                                  By: /s/ BRUCE L. ROGERS
                                      ----------------------------------
                                      Name: Bruce L. Rogers
                                      Title: Vice President

                                  DLJ INVESTMENT PARTNERS II, L.P.

                                  By: DLJ INVESTMENT PARTNERS II,
                                      INC., as managing general
                                      partner

                                  By: /s/ IVY DODES
                                      ----------------------------------
                                      Name: Ivy Dodes
                                      Title: Vice President

                                  DLJ INVESTMENT FUNDING II, INC.

                                  By: /s/ IVY DODES
                                      ----------------------------------
                                      Name: Ivy Dodes
                                      Title: Vice President

                                  DLJ ESC II L.P.

                                  By: DLJ LBO PLANS MANAGEMENT
                                      CORPORATION, as general
                                      partner

                                  By: /s/ IVY DODES
                                      ----------------------------------
                                      Name: Ivy Dodes
                                      Title: Vice President

                                  DLJ INVESTMENT PARTNERS, L.P.

                                  By: DLJ INVESTMENT PARTNERS, INC.,
                                      as managing general partner

                                      S-1
<PAGE>   18

                                  By: /s/ IVY DODES
                                      ----------------------------------
                                      Name: Ivy Dodes
                                      Title: Vice President

                                      S-2
<PAGE>   19

                                  RELIASTAR FINANCIAL CORP.

                                  By: /s/ MARK S. JORDAHL
                                      ----------------------------------
                                      Name:  Mark S. Jordahl
                                      Title: Senior Vice President

                                      S-3

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