Document:

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                                                                   Exhibit 10.40

                            SUBORDINATED INDEBTEDNESS
                             INTERCREDITOR AGREEMENT

     AGREEMENT ("AGREEMENT"), dated as of August 29, 2000, by and among
TransTechnology Corporation, a Delaware corporation (the "BORROWER"), each
subsidiary of the Borrower that is a signatory hereto (the "EXISTING
GUARANTORS"), each additional subsidiary that from time to time executes a
joiner to this Agreement together with the Existing Guarantors, (the
"GUARANTORS"), J. H. Whitney Mezzanine Fund, L.P., a Delaware limited
partnership ("WMF"), Albion Alliance Mezzanine Fund I, L.P. ("ALBION I"), a
Delaware limited partnership, Albion Alliance Mezzanine Fund II, L.P. ("ALBION
II"), a Delaware limited partnership, The Equitable Life Assurance Society of
the United States ("EQUITABLE"), a New York corporation, Fleet Corporate
Finance, Inc. ("FLEET"), a Massachusetts corporation and Citizens Capital
Inc.("CITIZENS", and together with Albion I, Albion II, Equitable and Fleet,
collectively the "CO-INVESTORS"), a Massachusetts corporation. WMF and the
Co-Investors are sometimes collectively referred to herein as the "SUBORDINATED
NOTEHOLDERS." The Guarantors and the Borrowers are sometimes collectively
referred to herein as the "OBLIGORS."

                              W I T N E S S E T H :
                               - - - - - - - - - -

         WHEREAS, the Borrower is the obligor of, and WMF is the holder of, a
16% Senior Subordinated Promissory Note due August 29, 2005 in the principal
amount of $30,000,000 (together with all notes issued in substitution or
replacement thereof, the "WMF SUBORDINATED NOTE"), which WMF purchased from the
Borrower pursuant to the Securities Purchase Agreement (the "SECURITIES PURCHASE
AGREEMENT"), dated as of the date hereof, among the Borrower, WMF and the
Co-Investors (the indebtedness evidenced by the WMF Subordinated Note, together
with all other obligations guaranteed to WMF by the Guarantors pursuant to the
Guaranty, by and among the Subordinated Noteholders and the Existing Guarantors,
dated the date hereof (the "GUARANTY") shall hereinafter be referred to as the
"WMF SUBORDINATED OBLIGATIONS");

         WHEREAS, the Borrower is the obligor of, and Albion I is the holder of,
a 16% Senior Subordinated Promissory Note due August 29, 2005 in the principal
amount of $4,000,000 (together with all notes issued in substitution or
replacement thereof, the "ALBION I SUBORDINATED NOTE"), which Albion I purchased
from the Borrower pursuant to the Securities Purchase Agreement (the
indebtedness evidenced by the Albion I Subordinated Note, together with all
other obligations guaranteed by the Guarantors to Albion I pursuant to the
Guaranty, shall hereinafter be referred to as the "ALBION I SUBORDINATED
OBLIGATIONS"); and

         WHEREAS, the Borrower is the obligor of, and Albion II is the holder
of, a 16% Senior Subordinated Promissory Note due August 29, 2005 in the
principal amount of $8,500,000 (together with all notes issued in substitution
or replacement thereof, the "ALBION II SUBORDINATED NOTE"), which Albion II
purchased from the Borrower pursuant to the Securities Purchase Agreement (the
indebtedness evidenced by the Albion II Subordinated Note, together with all
other obligations guaranteed by the Guarantors to Albion II pursuant to the
Guaranty, shall hereinafter be referred to as the "ALBION II SUBORDINATED
OBLIGATIONS"); and

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         WHEREAS, the Borrower is the obligor of, and Equitable is the holder
of, a 16% Senior Subordinated Promissory Note due August 29, 2005 in the
principal amount of $12,500,000 (together with all notes issued in substitution
or replacement thereof, the "EQUITABLE SUBORDINATED NOTE"), which Equitable
purchased from the Borrower pursuant to the Securities Purchase Agreement (the
indebtedness evidenced by the Equitable Subordinated Note, together with all
other obligations guaranteed by the Guarantors to Equitable pursuant to the
Guaranty, shall hereinafter be referred to as the "EQUITABLE SUBORDINATED
OBLIGATIONS"); and

         WHEREAS, the Borrower is the obligor of, and Fleet is the holder of, a
16% Senior Subordinated Promissory Note due August 29, 2005 in the principal
amount of $12,500,000 (together with all notes issued in substitution or
replacement thereof, the "FLEET SUBORDINATED NOTE"), which Fleet purchased from
the Borrower pursuant to the Securities Purchase Agreement (the indebtedness
evidenced by the Fleet Subordinated Note, together with all other obligations
guaranteed by the Guarantors to Fleet pursuant to the Guaranty, shall
hereinafter be referred to as the "FLEET SUBORDINATED OBLIGATIONS"); and

         WHEREAS, the Borrower is the obligor of, and Citizens is the holder of,
a 16% Senior Subordinated Promissory Note due August 29, 2005 in the principal
amount of $7,500,000 (together with all notes issued in substitution or
replacement thereof, the "CITIZENS SUBORDINATED NOTE" and, together with the WMF
Subordinated Note, the Albion I Subordinated Note, the Albion II Subordinated
Note, the Equitable Subordinated Note and the Fleet Subordinated Note,
collectively, the "SUBORDINATED NOTES"), which Citizens purchased from the
Borrower pursuant to the Securities Purchase Agreement (the indebtedness
evidenced by the Citizens Subordinated Note, together with all other obligations
guaranteed by the Guarantors to Citizens pursuant to the Guaranty, the WMF
Subordinated Obligations, the Albion I Subordinated Obligations, the Albion II
Subordinated Obligations, the Equitable Subordinated Obligations and the Fleet
Subordinated Obligations, shall hereinafter be referred to, collectively, as the
"SUBORDINATED OBLIGATIONS"); and

         WHEREAS, it is in the best interests of the Obligors, WMF and the
Co-Investors to enter into this Agreement in order to set forth, among other
things, the relative rights of WMF and the Co-Investors with respect to the
payments on and distributions in respect of the Subordinated Obligations.

         NOW, THEREFORE, in consideration of the above premises and for other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

         SECTION 1. RANKING. The Subordinated Obligations shall rank PARI PASSU
(based upon principal then outstanding) to each other in right of payment and
distribution of any cash, securities or other assets. In furtherance of, and not
in limitation of, the other provisions of this Agreement, any reference in this
Agreement to "payment" or "distribution" in respect of the Subordinated
Obligations shall include, without limitation, any direct or indirect payment of
principal or interest with respect thereto (including, without limitation, in
connection with any mandatory or optional prepayment provisions); any direct or
indirect payment or recovery on any

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claim as a holder relating to or arising out of any Subordinated Note, or any
interest therein, in each case by or on behalf of any Obligor from any source of
any kind or character, by set-off or otherwise; and any direct or indirect
depositing of funds for the defeasance of any of the Subordinated Obligations,
any sinking fund, or any payment on account of mandatory or optional prepayment
or redemption provisions or any payments made in connection with the retirement
of or purchase and sale of any of the Subordinated Notes by any Obligor from the
holder thereof.

         SECTION 2. RATABLE RETIREMENT OR ACQUISITION OF SUBORDINATED NOTES.
Without the prior unanimous written consent of all the holders of the
Subordinated Notes then outstanding, none of the Obligors nor any of their
respective subsidiaries or affiliates shall prepay, redeem, or otherwise
purchase, retire or acquire, directly or indirectly, any Subordinated Note
UNLESS such Obligor, subsidiary or affiliate shall have offered (and shall have
the necessary funds readily available) to prepay, redeem or otherwise purchase,
retire or acquire, as the case may be, the same proportion of all of the
Subordinated Notes then outstanding, in each case upon the same terms and
conditions.

         SECTION 3. PERMITTED PAYMENTS. Regularly scheduled payments of interest
due under each of the Subordinated Notes shall be deemed to have been made in
compliance with Sections 1 and 2 of this Agreement if such payments of interest
shall be contemporaneously made with respect to all of the Subordinated Notes.
No provision in this Agreement shall prohibit or otherwise affect the obligation
of the Company to pay when due such interest payments.

         SECTION 4. LIMITATION ON REMEDIES. The Subordinated Noteholders agree
among themselves that for so long as any Subordinated Obligations remain
outstanding, without the prior written consent of the holders of at least a
majority of the then outstanding aggregate principal amount of Subordinated
Notes, which shall include at least two holders of Subordinated Notes which are
not affiliates (the "Requisite Subordinated Noteholders"), none of the holders
of Subordinated Notes (in each case in its capacity as such a holder) may:

             (a) declare, or join in the declaration by any person or entity
other than the Requisite Subordinated Noteholders of, any Subordinated
Obligations to be due and payable prior to the maturity thereof or otherwise
accelerate the maturity of the principal of any Subordinated Obligations,
accrued interest thereon or other amounts due thereunder or with respect
thereto; or

             (b) take any other action against any Obligor in connection with
the Subordinated Obligations, including, without limitation, commencing any
administrative, legal or equitable action against any Obligor (including,
without limitation, filing and joining in the filing of any insolvency petition
against any Obligor).

In the event that the Requisite Subordinated Noteholders take any of the
foregoing actions, such actions shall bind all holders of the Subordinated
Obligations and any proceeds derived therefrom shall be distributed to the
Subordinated Noteholders in accordance with the terms of this Agreement.

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     Notwithstanding anything to the contrary contained herein, if there is a
default in the payment of interest, principal, or premium when due under any of
the Subordinated Obligations (a "Payment Default"), and the Payment Default (i)
is not cured or (ii) if the Requisite Subordinated Noteholders have not
accelerated the Subordinated Obligations, within thirty (30) days from the date
the Subordinated Noteholders are able to take any action with respect to a
Payment Default under the Subordination and Intercreditor Agreement of even date
hereof among the Subordinated Noteholders, the Borrower, and certain
subsidiaries thereof, and Fleet National Bank, as Agent, as amended from time to
time, or within one hundred eighty (180) days from the date of the Payment
Default, whichever is earlier, then any Subordinated Noteholder that purchased a
Subordinated Note on the date hereof, or any transferee of a Subordinated
Noteholder that holds one or more Subordinated Notes in the principal amount of
at least $5,000,000 may accelerate the Subordinated Obligations under the
Subordinated Note held by such Subordinated Noteholder, as provided for therein.

         SECTION 5. AMENDMENTS OF SUBORDINATED OBLIGATIONS.

             (a) Notwithstanding any provision in any of the Loan Documents (as
hereinafter defined) to the contrary, no amendment, supplement or Modification
of or to any provision in any Loan Document, or any waiver of any such provision
or consent to any departure by any party from the terms of any such provision
may be made orally. The term "Loan Documents" means the documents governing the
Subordinated Obligations, including, without limitation, the Subordinated Notes,
but excluding this Agreement (the amendment of which is governed by Section 12
hereof).

             (b) Notwithstanding any provision in any of the Loan Documents to
the contrary, any (i) amendment, supplement or modification to any Loan
Document, (ii) consent under any Loan Document or (iii) waiver of any provision
(collectively, "Modification") of any Loan Document shall be effective as to all
of the holders of Subordinated Notes if given pursuant to a written agreement
signed by the Obligors and the Requisite Subordinated Noteholders in accordance
with the requirements of Section 11.4 of the Purchase Agreement;

             (c) Any amendment, supplement or modification of or to any
provision of the Subordinated Obligations, any waiver of any provision of the
Subordinated Notes, and any consent to any departure by any party from the terms
of any provision of the Subordinated Notes, shall (i) apply to all the
Subordinated Obligations and Subordinated Notes and (ii) be effective only in
the specific instance and for the specific purpose for which made or given.

         SECTION 6. EXCESS PAYMENTS AND DISTRIBUTIONS RECEIVED. If a
Subordinated Noteholder shall have received any payment or distribution of cash,
securities or other assets in respect of the Subordinated Obligations in
contravention of the terms of this Agreement (any such payment or distribution,
shall be referred to as an "Excess Payment"), then and in such event such Excess
Payment shall be received and held in trust for and shall be promptly paid over
or delivered to the Subordinated Noteholders entitled to such Excess Payment in
such amounts and proportions in accordance with and pursuant to the terms of
this Agreement. If,

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after a Subordinated Noteholder (the "Payor Subordinated Noteholder") shall have
paid any Excess Payment to another Subordinated Noteholder (each such
Subordinated Noteholder shall be referred to as a "Payee Subordinated
Noteholder") pursuant to this Section 6, such Excess Payment shall have been
rescinded or must otherwise be returned by the Payor Subordinated Noteholder, in
whole or in part, because of the insolvency, bankruptcy or reorganization of any
Obligor or for any similar reason, then each such Payee Subordinated Noteholder
shall repay to the Payor Subordinated Noteholder an amount equal to such Payee
Subordinated Noteholder's pro rata portion of the Excess Payment that has been
so rescinded or must otherwise be returned. For purposes of this Section 6 the
"pro rata portion" of the Excess Payment that shall be required to be returned
by a Payee Subordinated Noteholder shall equal the amount of the Excess Payment
that has been so rescinded or must otherwise be returned multiplied by a
fraction, the numerator of which shall be the amount of the Excess Payment paid
by the Payor Subordinated Noteholder to such Payee Subordinated Noteholder and
the denominator of which is the aggregate amount of the Excess Payment paid by
the Payor Subordinated Noteholder to all Payee Subordinated Noteholders. No
interest payment made as contemplated by Section 3 shall be deemed to be an
Excess Payment.

         SECTION 7. LEGEND; FURTHER ASSURANCES.

             (a) The Subordinated Noteholders and the Borrower will cause each
Subordinated Note and instrument (if any) evidencing the Subordinated
Obligations to be endorsed with the following legend:

                  "THE SUBORDINATED INDEBTEDNESS EVIDENCED BY THIS INSTRUMENT
         RANKS PARI PASSU WITH CERTAIN OTHER SUBORDINATED INDEBTEDNESS OF THE
         MAKER AND IS OTHERWISE SUBJECT TO CERTAIN OTHER RESTRICTIONS SET FORTH
         IN THAT CERTAIN SUBORDINATED INDEBTEDNESS INTERCREDITOR AGREEMENT,
         DATED AS OF AUGUST 29, 2000, BY AND AMONG THE MAKER HEREOF, THE PAYEE
         NAMED HEREIN, CERTAIN OTHER HOLDER(S) OF INDEBTEDNESS OF THE MAKER AND
         THE GUARANTORS OF SUCH INDEBTEDNESS, AS SUCH AGREEMENT MAY BE AMENDED
         FROM TIME TO TIME."

             (b) Each of the Subordinated Noteholders and the Guarantor will
cause the Guarantees to be endorsed with the following legend:

                  "THE OBLIGATIONS GUARANTEED HEREBY AND THE OBLIGATION
         HEREUNDER TO GUARANTY SUCH OBLIGATIONS ARE SUBJECT TO THE RESTRICTIONS
         SET FORTH IN THAT CERTAIN SUBORDINATED INDEBTEDNESS INTERCREDITOR
         AGREEMENT, DATED AS OF AUGUST 29, 2000, BY AND AMONG THE HOLDERS OF
         SUCH OBLIGATIONS, THE GUARANTORS HEREUNDER AND THE PARENT OF SUCH
         GUARANTORS, AS SUCH AGREEMENT MAY BE AMENDED FROM TIME TO TIME."

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             (c) Each of the Subordinated Noteholders and the Obligors will at
its expense and at any time and from time to time promptly execute and deliver
all further instruments and documents and take all further actions (including,
without limitation, obtaining any consents, exemptions or authorizations) that
may be necessary in order to protect any right or interest granted or purported
to be granted hereunder or to enable each of the Subordinated Noteholders to
exercise and enforce their rights and remedies hereunder.

         SECTION 8. AGREEMENT BY THE OBLIGORS. Each of the Obligors agrees that
it will not make any payment or distribution in respect of any of the
Subordinated Obligations, or take any other action, in contravention of the
provisions of this Agreement. The obligations of the Obligors hereunder are
joint and several.

         SECTION 9. OBLIGATIONS HEREUNDER NOT AFFECTED. All rights and interest
of the Subordinated Noteholders hereunder, and all agreements and obligations of
the Subordinated Noteholders and the Obligors hereunder, shall remain in full
force and effect irrespective of:

             (a) any lack of validity or enforceability of any document
evidencing or relating to the Subordinated Obligations;

             (b) any change in the time, manner or place of payment of, or any
other term of, all or any of the Subordinated Obligations, or any other
amendment or waiver of or any consent to departure from any of the documents
evidencing or relating to the Subordinated Obligations (whether or not effected
in accordance with the provisions of this Agreement);

             (c) any failure of any Subordinated Noteholder to assert any claim
or to enforce any right or remedy against any other party hereto under the
provisions of this Agreement or any other document evidencing or relating to the
Subordinated Obligations;

             (d) any reduction, limitation, impairment or termination of the
Subordinated Obligations for any reason (other than the defense of payment in
full of all of the Subordinated Obligations), including, without limitation, any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to (and each Obligor hereby waives any right to or claim of) any defense
(other than the defense of payment in full of the Subordinated Obligations) or
set off, counterclaim, recoupment or termination whatsoever by reason of
invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any
Subordinated Obligations; and

             (e) any other circumstances which might otherwise constitute a
defense (other than the defense of payment in full in cash of all of the
Subordinated Obligations) available to, or a discharge of, any Obligor in
respect of the Subordinated Obligations or the Subordinated Noteholders in
respect of this Agreement.

This Agreement shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Subordinated Obligations is
rescinded or must otherwise be returned

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by any Subordinated Noteholder upon the insolvency, bankruptcy or reorganization
of any Obligor or otherwise, all as though such payment had not been made.

         SECTION 10. RELATIVE RIGHTS. This Agreement defines the relative rights
of the Subordinated Noteholders. Nothing in this Agreement shall: (a) impair, as
between the Obligors, on the one hand, and the Subordinated Noteholders, on the
other hand, the absolute and unconditional obligations of the Obligors pursuant
to the Subordinated Obligations, including, without limitation, the obligation
to pay principal and interest (including, without limitation, default interest)
on the Subordinated Notes in accordance with their respective terms or in the
case of the Guarantors, in accordance with the Guaranty; or (b) subject to the
terms of this Agreement, prevent the Subordinated Noteholders from exercising
their available remedies upon a default or event of default under the
Subordinated Notes.

         SECTION 11. REPRESENTATIONS AND WARRANTIES.

             (a) Each of the Obligors hereby jointly and severally represent and
warrant as follows:

                 (i) the execution, delivery and performance by each Obligor of
this Agreement is within its corporate power, has been duly authorized by all
necessary corporate action, and does not contravene its certificate of
incorporation or by-laws or any material contractual restriction, law or
governmental regulation or court decree order binding on or affecting such
Obligor; and

                 (ii) this Agreement constitutes a legal, valid and binding
obligation of each Obligor, enforceable in accordance with its terms (subject to
the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors' rights
generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing).

             (b) Each of the Subordinated Noteholders represents as to itself
and not as to any other Noteholder as follows:

                 (i) such Subordinated Noteholder owns the Subordinated Note
issued to it as described in the recitals hereto free and clear of any security
interest, mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or otherwise), charge against or interest in
property, or other priority or preferential arrangement of any kind or nature
whatsoever, to secure payment of a debt or performance of an obligation other
than, with respect to WMF, pursuant to the pledge of the WMF Subordinated Notes
pursuant to the terms of the partnership agreements or other agreements of WMF
pursuant to which WMF issued any bonds, promissory notes or other evidences of
indebtedness;

                 (ii) the execution, delivery and performance by each
Subordinated Noteholder of this Agreement is within such party's individual,
corporate or partnership or limited liability company (as the case may be)
powers, has been duly authorized

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by all necessary organizational action, and does not contravene any provision of
its organizational documents or any material contractual restriction, law or
governmental regulation or court decree or order binding on or affecting such
party and, if such Subordinated Noteholder is an individual, such individual is
at least 18 years of age; and

                 (iii) this Agreement constitutes a legal, valid and binding
obligation of each Subordinated Noteholder, enforceable in accordance with its
terms (subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors' rights generally, general equitable principles (whether considered in
a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing).

         SECTION 12. AMENDMENTS, WAIVERS. No amendment, modification, supplement
or waiver of any provision of this Agreement nor consent or any departure by the
Subordinated Noteholders or the Obligors herefrom shall in any event be
effective unless the same shall be in writing and signed by the party or parties
hereto against whom enforcement of such amendment, waiver or consent is sought,
and then such waiver, amendment or consent shall be effective only in the
specific instance and for the specific purpose for which given. Any waiver,
forbearance, failure or delay by a Subordinated Noteholder in exercising, or the
exercise or beginning of exercise by a Subordinated Noteholder of, any right,
power or remedy, simultaneous or later, shall not preclude the further,
simultaneous or later exercise thereof, and every right, power or remedy of a
Subordinated Noteholder shall continue in full force and effect until such
right, power or remedy is specifically waived in a writing executed by such
Subordinated Noteholder. Notwithstanding any provision in this Agreement to the
contrary, the parties acknowledge that (i) the provisions set forth in Section 4
hereof are solely for the benefit of and inure to the Subordinated Noteholders,
and, as such, may be amended by a writing signed by the Subordinated Noteholder
against whom enforcement of such amendment, waiver or consent is sought, without
the consent of the Obligors except with respect to the definition of Requisite
Noteholders and (ii) no amendment, modification, supplement or waiver of or to
any provision of Section 5 nor consent to any departure by the Subordinated
Noteholders or the Obligors from any provision of Section 5 shall in any event
be effective unless the same shall be in writing and signed by all of the
holders of the Subordinated Notes then outstanding.

         SECTION 13. EXPENSES. Each Subordinated Noteholder (the "Indemnifying
Subordinated Noteholder") agrees to pay, upon demand, to the other Subordinated
Noteholders, any and all reasonable costs and expenses, including, without
limitation, reasonable attorneys' fees and disbursements that the other
Subordinated Noteholders may incur in connection with the exercise or
enforcement of any of the rights or interests of such other Subordinated
Noteholders hereunder in respect of a breach by such Indemnifying Subordinated
Noteholder of any of its obligations or agreements hereunder. The Obligors agree
to pay, upon demand, to the Subordinated Noteholders, as applicable, any and all
reasonable costs and expenses, including, without limitation, reasonable
attorneys' fees and disbursements that the Subordinated Noteholders may incur in
connection with the exercise or enforcement of all rights or interests of the
Subordinated Noteholders hereunder in respect of a breach by any Obligor of any
of its obligations or agreements hereunder.

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         SECTION 14. ADDRESS FOR NOTICES. All notices, demands and other
communications provided for or permitted hereunder shall be made in writing and
shall be by registered or certified first-class mail, return receipt requested,
telecopier (with receipt confirmed), courier service or personal delivery:

if to the Obligors:
                                    c/o TransTechnology Corporation
                                    150 Allen Road
                                    Liberty Corner, NJ  07938
                                    Telecopier: (908)903-9691
                                    Attention: Mr. Joseph Spanier

                                    with a copy to:

                                    Hahn Loeser & Parks, LLP
                                    3300 BP Tower
                                    200 Public Square
                                    Cleveland, OH 44114
                                    Telecopier: (216) 241-2824
                                    Attention:       F. Ronald O'Keefe, Esq.

                           2.       if to WMF
                                    J. H. Whitney Mezzanine Fund, L.P.
                                    177 Broad Street, 15th Floor
                                    Stamford, Connecticut 06901
                                    Telecopier No.:  (203) 973-1422
                                    Attention:       Mr. David A. Scherl
                                                     Mr. Daniel J. O'Brien

                                    with a copy to:

                                    Morrison Cohen Singer & Weinstein, LLP
                                    750 Lexington Avenue
                                    New York, New York  10022
                                    Telecopier No.:  (212) 735-8704
                                    Attention:       Andrew M. Arsiotis, Esq.
                                            Jack Levy, Esq.

                           3.
                                    If to Albion I
                                    Albion Alliance Mezzanine Fund I, L.P.
                                    1345 Avenue of the Americas
                                    New York, New York  10105
                                    Telecopier No.: (212) 969-6659
                                    Attention: James R. Wilson

                                    with a copy to

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                                    Morrison Cohen Singer & Weinstein, LLP
                                    750 Lexington Avenue
                                    New York, New York  10022
                                    Telecopier No.:  (212) 735-8704
                                    Attention: Andrew M. Arsiotis, Esq.
                                               Jack Levy, Esq.

                           4.       If to Albion II
                                    Albion Alliance Mezzanine Fund II, L.P.
                                    1345 Avenue of the Americas
                                    New York, New York  10105
                                    Telecopier No.: (212) 969-6659
                                    Attention:       James R. Wilson

                                    with a copy to

                                    Morrison Cohen Singer & Weinstein, LLP
                                    750 Lexington Avenue
                                    New York, New York  10022
                                    Telecopier No.:  (212) 735-8704
                                    Attention:       Andrew M. Arsiotis, Esq.
                                                     Jack Levy, Esq.

                           5.       If to Equitable
                                    The Equitable Life Assurance Society of the
                                     United States
                                    c/o Albion Alliance
                                    1345 Avenue of the Americas
                                    New York, New York  10105
                                    Telecopier No.: (212) 969-6659
                                    Attention:       James R. Wilson

                                    with a copy to:

                                    Morrison Cohen Singer & Weinstein, LLP
                                    750 Lexington Avenue
                                    New York, New York  10022
                                    Telecopier No.:  (212) 735-8704
                                    Attention:       Andrew M. Arsiotis, Esq.
                                                     Jack Levy, Esq.
                           6.       if to Fleet
                                    Fleet Corporate Finance, Inc.
                                    One Federal Street
                                    Boston, MA  02110
                                    Telecopier No.: (617) 434-4970
                                    Attention: Bradley Stewart

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                                    with a copy to:
                                    Morrison Cohen Singer & Weinstein, LLP
                                    750 Lexington Avenue
                                    New York, New York  10022
                                    Telecopier No.:  (212) 735-8704
                                    Attention:       Andrew M. Arsiotis, Esq.
                                                     Jack Levy, Esq.
                           7.       If to Citizens
                                    Citizens Capital Inc.
                                    28 State Street
                                    Boston, MA  02109
                                    Telecopier No.: (617) 725-5630
                                    Attention: Randall L. Kutch

                                    with a copy to:

                                    Morrison Cohen Singer & Weinstein, LLP
                                    750 Lexington Avenue
                                    New York, New York  10022
                                    Telecopier No.:  (212) 735-8704
                                    Attention:       Andrew M. Arsiotis, Esq.
                                                     Jack Levy, Esq.

or to such other address or addresses as shall have been furnished in writing to
the other parties hereto.

All such notices and communications shall be deemed to have been duly given:
when delivered by hand, if personally delivered; when delivered by courier, if
delivered by commercial overnight courier service; if mailed, five business days
after being deposited in the mail, postage prepaid; and, if telecopied, when
receipt is electronically confirmed.

         SECTION 15. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All of the
representations and warranties made herein shall survive the execution and
delivery of this Agreement, any investigation by or on behalf of the parties
hereto and termination of this Agreement.

         SECTION 16. SUBORDINATED NOTES OUTSTANDING. No Subordinated Notes held
by any Obligor or any of their respective affiliates shall be deemed to be
outstanding for purposes of this Agreement.

         SECTION 17. ENTIRE AGREEMENT; SEVERABILITY. This Agreement is intended
by the parties as a final expression of their agreement and intended to be a
complete and exclusive statement of the agreement and understanding of the
parties hereto in respect of the subject matter contained herein. There are no
restrictions, promises, warranties or undertakings

                                       11
<PAGE>   12

in respect of the subject matter contained herein, other than those set forth or
referred to herein. This Agreement supersedes all prior agreements and
understandings between the parties with respect to such subject matter,
including, without limitation, Section 7 of each of the Subordinated Notes. If
any of the provisions of this Agreement shall be held invalid or unenforceable,
this Agreement shall be construed as if not containing those provisions, and the
rights and obligations of the parties hereto shall be construed and enforced
accordingly.

         SECTION 18. CONTINUING AGREEMENT; TRANSFER OF SUBORDINATED NOTES; NO
THIRD PARTY BENEFICIARIES. This Agreement shall (a) remain in full force and
effect until the Subordinated Obligations shall have been paid in cash in full,
(b) be binding upon the Subordinated Noteholders and the Obligors and their
respective successors, transferees and assigns whether so expressed or not, and
(c) inure to the benefit of and be enforceable by each of the Subordinated
Noteholders and their respective successors, transferees and assigns. Without
limiting the generality of the foregoing, any Subordinated Noteholder may,
subject to the provisions of the Subordinated Note held by such Subordinated
Noteholder, assign or otherwise transfer, in whole or part, the Subordinated
Note held by it to any other person or entity and such other person or entity
shall thereupon become vested with all the rights in respect thereof granted to
such Subordinated Noteholders and shall become subject to all provisions of, and
assume all obligations of the assignor or transferor of such Subordinated Note
under this Agreement. This Agreement is not intended to confer upon any person
or entity other than the parties hereto any rights or remedies hereunder.

         SECTION 19. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY,
CONSTRUED IN ACCORDANCE WITH, AND ENFORCED UNDER, THE LAW OF THE STATE OF NEW
YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY
WITHIN SUCH STATE.

         SECTION 20. FORUM SELECTION AND CONSENT TO JURISDICTION. EACH PARTY TO
THIS AGREEMENT HEREBY IRREVOCABLY AGREES THAT ANY LEGAL ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE SUBORDINATED NOTES OR ANY
AGREEMENTS OR TRANSACTIONS RELATING THERETO MAY BE BROUGHT IN THE COURTS OF THE
STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT
OF NEW YORK AND HEREBY EXPRESSLY SUBMITS TO THE PERSONAL JURISDICTION AND VENUE
OF SUCH COURTS FOR THE PURPOSES THEREOF AND EXPRESSLY WAIVES ANY CLAIM OF
IMPROPER VENUE AND ANY CLAIM THAT SUCH COURTS ARE AN INCONVENIENT FORUM. EACH
PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ITS ADDRESS
SET FORTH IN SECTION 14, SUCH SERVICE TO BECOME EFFECTIVE 10 DAYS AFTER SUCH
MAILING.

         SECTION 21. POWER OF ATTORNEY. Each holder of Subordinated Notes does
hereby irrevocably constitute and appoint the Requisite Subordinated
Noteholders, and each of them, with full power of substitution, as such holder's
true and lawful attorneys-in-fact (each,

                                       12
<PAGE>   13

an "Attorney-in-Fact"), in his, her or its name, place and stead, to execute,
acknowledge, swear to, deliver, file and record such (i) amendments as may be
approved by the Requisite Subordinated Noteholders as contemplated by Section 5
hereof and (ii) such other documents as are deemed necessary by the
Attorney-in-Fact to carry out fully the provisions of Section 5 and Section 6 of
this Agreement in accordance with the terms thereof. The grant of authority in
this Section 21 is a special power of attorney coupled with an interest in the
Attorney-in-Fact and shall survive the death or incapacity of any holder of
Subordinated Notes, may be exercised for such holder by a facsimile signature of
the Attorney-in-Fact, and shall survive any assignment by the holder of any
interest in the Subordinated Notes held by such holder. Obligors shall be
entitled to rely on the written notice of such attorney-in-fact in connection
with any matter contemplated by this Section 21.

         SECTION 22. ADDITIONAL GUARANTORS. The Company shall cause any person
or entity that becomes a guarantor of any of the Subordinated Obligations to
execute a joinder to this Agreement pursuant to which such person or entity
shall be bound by the terms hereof applicable to the Guarantor.

         SECTION 23. NOTES CONSTITUTING SUBORDINATED NOTES. For all purposes
under this Agreement, the term Subordinated Notes shall include all notes
(together with all notes issued in substitution or replacement thereof)
contemplated by the "PIK interest" provisions set forth in Section 2(b) of each
of the Subordinated Notes.

         SECTION 24. SPECIFIC PERFORMANCE. The parties hereto agree that the
breach by any party of the provisions of this Agreement would result in
substantial damage to the other parties which would be difficult, if not
impossible, to ascertain, and by reason of that fact the parties agree that in
the event of any such breach, the non-breaching parties shall have the right to
enforce this Agreement by injunction or other proceeding in equity without the
posting of a bond or other security.

         SECTION 25. SIGNATURES; EXECUTION IN COUNTERPARTS. Telefacsimile
transmissions of any executed original document and/or retransmission of any
executed telefacsimile transmission shall be deemed to be the same as the
delivery of an executed original. At the request of any party hereto, the other
parties hereto shall confirm telefacsimile transmissions by executing duplicate
original documents and delivering the same to the requesting party or parties.
This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       13
<PAGE>   14

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

                                    TRANSTECHNOLOGY CORPORATION

                                    By:  /S/ Joseph F. Spanier
                                        --------------------------------------
                                        Name:    Joseph F. Spanier
                                        Title:   Vice President, Chief Financial
                                                 Officer

                                    J. H. WHITNEY MEZZANINE FUND, L.P.

                                    By: Whitney GP, L.L.C.,

                                    By:  /S/ JOSEPH D. CARRABINO, JR.
                                        --------------------------------------
                                        Name: Joseph D. Carrabino, Jr.
                                        A Managing Member

                                    ALBION ALLIANCE MEZZANINE FUND I, L.P.

                                    By:  Albion Alliance, LLC, its
                                         General Partner

                                    By:  /S/ JAMES R. WILSON
                                        --------------------------------------
                                        Name: James R. Wilson
                                        Title:   Senior Vice President

                                       14
<PAGE>   15

                                    ALBION ALLIANCE MEZZANINE FUND II, L.P

                                    By: AA MEZZ II GP, LLC, its
                                        General Partner

                                    By:  Albion Alliance, LLC, its
                                            General Partner

                                    By: /S/ James R. Wilson
                                        --------------------------------------
                                        Name: James R. Wilson
                                        Title:   Senior Vice President

                                    THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE
                                    UNITED STATES

                                    By:/s/ James R. Wilson
                                        --------------------------------------
                                        Name: James R. Wilson
                                        Title:    Investment Officer

                                    FLEET CORPORATE FINANCE, INC.

                                    By:/s/ Michael Browne
                                        --------------------------------------
                                        Name: Michael Browne
                                        Title:    Managing Director

                                    CITIZENS CAPITAL INC.

                                    By:/S/ RANDALL KUTCH
                                        Name:    Randall Kutch
                                        Title:   Director

                                AEROSPACE RIVET
                                         MANUFACTURERS CORPORATION

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                ELECTRONIC CONNECTIONS AND
                                         ASSEMBLIES, INC.

                                By:      /S/ Gerald C. Harvey
                                         ----------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                       15
<PAGE>   16

                                ELLISON RING & WASHER, INC

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                NORCO, INC.

                                By:      /S/ GERALD C. HARVEY
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                PALNUT FASTENERS, INC.

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                RANCHO TRANSTECHNOLOGY
                                         CORPORATION

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                RETAINERS, INC.

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                SEEGER, INC.

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                SSP INDUSTRIES

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                       16
<PAGE>   17

                                SSP INTERNATIONAL SALES, INC.

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                TCR CORPORATION

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                TRANSTECHNOLOGY ACQUISITION CORPORATION

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                TRANSTECHNOLOGY SEEGER INC.

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                TRANSTECHNOLOGY SYSTEMS
                                         & SERVICES, INC.

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                TRANSTECHNOLOGY ENGINEERED
                                         COMPONENTS, LLC

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                       17
<PAGE>   18

                                TRANSTECHNOLOGY ENGINEERED
                                         RINGS USA, INC.

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                TRANSTECHNOLOGY INTERNATIONAL
                                         CORPORATION

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                                TRANSTECHNOLOGY CANADA CORPORATION

                                By:      /S/ Gerald C. Harvey
                                        --------------------------------------
                                         Name:  Gerald C. Harvey
                                         Title:    Vice President and Secretary

                   [SIGNATURE PAGE TO INTERCREDITOR AGREEMENT]

                                       18<PAGE>   1
                                                                   Exhibit 10.41

                                   CONSENT AND
                            AMENDMENT AGREEMENT NO. 1

                           dated as of August 21, 2000

                                 to that certain

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

         This CONSENT AND AMENDMENT AGREEMENT NO. 1 (this "AMENDMENT"), dated as
of August 21, 2000, is by and among (a) TransTechnology Corporation
("TRANSTECHNOLOGY"), TransTechnology Seeger-Orbis GmbH ("GmbH") and
TransTechnology (GB) Limited ("LIMITED", together with TransTechnology and GmbH,
the "BORROWERS"), (b) Fleet National Bank (formerly known as BankBoston, N.A.)
("FNB") and the other lending institutions listed on SCHEDULE 1 to the Credit
Agreement (collectively, the "LENDERS"), (c) FNB, acting through its London
Branch, as Sterling Fronting Bank (the "STERLING FRONTING BANK"), (d) BHF-BANK
Aktiengesellschaft, as DM Fronting Bank (the "DM FRONTING BANK"), (e) FNB, as
issuing bank (in such capacity, the "ISSUING BANK"), (f) ABN AMRO Bank N.V., as
Syndication Agent, (g) Bank One, NA (formerly known as The First National Bank
of Chicago), as Documentation Agent, and (h) FNB as Administrative Agent for the
Lenders, the Sterling Fronting Bank, the DM Fronting Bank and the Issuing Bank
(in such capacity, the "ADMINISTRATIVE AGENT"). Capitalized terms used herein
unless otherwise defined shall have the respective meanings set forth in that
certain Second Amended and Restated Credit Agreement dated as of June 30, 1995,
and amended and restated as of July 24, 1998, and as further amended and
restated as of August 31, 1999 (as so amended and restated, the "CREDIT
AGREEMENT"), to which the Borrowers, the Lenders and the Administrative Agent
are parties.

         WHEREAS, in connection with the proposed refinancing by TransTechnology
of the amounts outstanding under the Senior Subordinated Loan Agreement, the
Borrowers have requested, on the terms and conditions set forth herein, (i)
certain amendments to the financial covenants of the Credit Agreement, and (ii)
the consent of the Majority Lenders and the Administrative Agent to the terms
and provisions of the Refinancing Subordinated Debt (as defined in Sec. 2 below)
to be issued by TransTechnology; and

         WHEREAS, the Borrowers have also requested the consent of the Lenders,
on the terms and conditions set forth herein, to certain asset and share
transfers; and

         WHEREAS, the Lenders and the Administrative Agent have agreed to honor
such requests upon the terms and conditions hereinafter set forth;

         NOW, THEREFORE, in consideration of the foregoing premises, the parties
hereto hereby agree as follows:

         Section 1. AMENDMENTS TO CREDIT AGREEMENT. The Credit Agreement is
hereby amended with effect from the Effective Date (as defined in Sec. 9 below)
as follows:

         (a) DEFINITIONS REPLACED. Sec. 1 of the Credit Agreement is hereby
amended by deleting the definitions of "Applicable Margin", "Consolidated Total
Interest Expense" and

<PAGE>   2
                                      -2-

"Earnings Before Interest and Taxes" and substituting in lieu thereof the
following new definitions in proper alphabetical sequence:

         "APPLICABLE MARGIN.

         (a) Until the date immediately preceding the first Reset Date following
August 31, 2000, the Applicable Margin with respect to Base Rate Loans shall be
1.75%, the Applicable Margin with respect to Eurocurrency Rate Loans shall be
3.25%, and the Commitment Fee Rate shall be 0.50%. Subject to paragraph (b)
below, for each period commencing on a Reset Date (beginning with the first
Reset Date following August 31, 2000) through the date immediately preceding the
next Reset Date (each such period, a "RATE SETTING PERIOD"), the Applicable
Margin shall be the applicable percentage set forth in the chart below (the
"PRICING GRID"), based upon the Leverage Ratio as determined for the Reference
Period ended on the last day of the fiscal quarter ended immediately preceding
the commencement of the applicable Rate Setting Period:

<TABLE>
<CAPTION>
                                                      APPLICABLE MARGIN
              LEVERAGE RATIO                 BASE RATE        EUROCURRENCY       COMMITMENT
                                               LOANS           RATE LOANS         FEE RATE

    ------------------------------------ ------------------ ----------------- -----------------
<S>                                       <C>               <C>               <C>
    2.50:1 or lower                            0.50%             2.00%             0.375%
    ------------------------------------ ------------------ ----------------- -----------------
    3.00:1 or lower,  but  higher  than        0.75%             2.25%             0.375%
    2.50:1
    ------------------------------------ ------------------ ----------------- -----------------
    3.50:1 or lower,  but  higher  than        1.00%             2.50%             0.500%
    3.00:1
    ------------------------------------ ------------------ ----------------- -----------------
    4.00:1 or lower,  but  higher  than        1.25%             2.75%             0.500%
    3.50:1
    ------------------------------------ ------------------ ----------------- -----------------
    4.50:1 or lower,  but  higher  than        1.50%             3.00%             0.500%
    4:00:1
    ------------------------------------ ------------------ ----------------- -----------------
    Higher than 4.50:1                         1.75%             3.25%             0.500%
    ------------------------------------ ------------------ ----------------- -----------------
</TABLE>

         (b) If no Compliance Certificate is delivered when required by
Sec. 9.4(c), then, for the period commencing on the next Reset Date following
the date on which such delivery was required through the date immediately
following the date of actual delivery to the Administrative Agent of such
Compliance Certificate, the Applicable Margin and the Commitment Fee Rate shall
be set at the highest applicable rate set forth in the Pricing Grid."

         "CONSOLIDATED TOTAL INTEREST EXPENSE. For any period, the aggregate
amount of interest required to be paid by TransTechnology and its Subsidiaries
during such period on all Indebtedness of TransTechnology and its Subsidiaries
outstanding during all or any part of such period, whether such interest was or
is required to be reflected as an item of expense or capitalized, including
payments consisting of cash interest in respect of Subordinated Debt or
Capitalized Leases and including commitment fees, agency fees, facility fees and
similar fees or expenses in connection with the borrowing of money, but
EXCLUDING all non-cash payments, including without limitation the
payment-in-kind of interest on any Subordinated Debt of TransTechnology or the
non-cash amortization of fees paid with respect to the Prior Credit Agreement or
pursuant to Secs. 6.1 and 6.2 under this Credit Agreement on the Closing Date."

<PAGE>   3
                                      -3-

         "EARNINGS BEFORE INTEREST AND TAXES. The consolidated earnings (or
loss) from the operations of TransTechnology and its Subsidiaries for any
period, after all expenses and other proper charges but before payment or
provision for any income taxes or interest expense for such period, determined
in accordance with generally accepted accounting principles, after eliminating
therefrom (a) all non-cash items of income (or loss), other than depreciation or
amortization, otherwise included in consolidated earnings (or loss), and (b)
without duplication, all non-recurring items of income (or loss) resulting from
the discontinuation of operations but only to the extent that all assets
characterized as belonging to or being employed in such operations are also
excluded from Consolidated Total Assets pursuant to the definition thereof."

         (b) DEFINITION AMENDED. The definition "Approved Acquisition" set forth
in Sec. 1 of the Credit Agreement is hereby amended as follows:

                  (i) by deleting the words "audited financial statements . . .
         capital stock of TransTechnology," from the fifth through thirteenth
         lines of the first paragraph thereof, and substituting therefor the
         following:

         "the aggregate consideration, whether in cash, property or shares of
         capital stock of TransTechnology payable by the applicable member of
         the TransTechnology Group (including the full amount of any contingent
         payment potentially payable by any member of the TransTechnology Group
         pursuant to any post-closing adjustment to the purchase price,
         earn-out, or otherwise), does not, when aggregated with the amount of
         Indebtedness being assumed by any members of the TransTechnology Group
         or remaining outstanding after the Acquisition Closing Date with
         respect thereto, exceed $10,000,000 on such Acquisition Closing Date,"

                  (ii) by deleting from clause (d) thereof the number
         "$15,000,000" and substituting therefor the number "$5,000,000".

         (c) CONSOLIDATED EBITDA TO CONSOLIDATED TOTAL INTEREST EXPENSE.
Sec. 11.1 of the Credit Agreement is hereby amended by deleting the table set
forth at the end of such Sec. 11.1 and substituting in lieu thereof the
following table:

<PAGE>   4
                                      -4-

                 "PERIOD                                         RATIO

                 From July 1, 2000 through                       1.75 : 1
                 September 30, 2001

                 From October 1, 2001 through                    2:00 : 1
                 September 30, 2002

                 From October 1, 2002 through                    2.25 : 1
                 September 30, 2003

                 From October 1, 2003 and thereafter             2.50 : 1"

         (d) FIXED CHARGE COVERAGE RATIO. Sec. 11.2 of the Credit Agreement is
hereby amended by deleting the table set forth at the end of such Sec. 11.2 and
substituting in lieu thereof the following table:

                  "PERIOD                                        RATIO

                  From July 1, 2000 through                      1.25 : 1
                  March 31, 2002

                  From April 1, 2002 through June 30, 2003       1.35 : 1

                  From July 1, 2003 and thereafter               1.50 : 1

         (e) LEVERAGE RATIO. Sec. 11.3 of the Credit Agreement is hereby
amended by deleting the table set forth at the end of such sec. 11.3 and
substituting in lieu thereof the following table:

                  "PERIOD                                        RATIO

                  From July 1, 2000 through                      5.00 : 1
                  June 30, 2001

                  From July 1, 2001 through                      4.75 : 1
                  June 30, 2002

                  From July 1, 2002 through                      4.50 : 1
                  March 31, 2003

                  From April 1, 2003 through                     4.25 : 1
                  December 31, 2003

                  From January 1, 2004 and thereafter            4.00 : 1"

<PAGE>   5
                                      -5-

         (f) SENIOR LEVERAGE RATIO. Sec. 11.4 of the Credit Agreement is hereby
amended by deleting such Sec. 11.4 in its entirety and substituting in lieu
thereof the following new Sec. 11.4:

                  "11.4. SENIOR LEVERAGE RATIO. TransTechnology will not permit
         the Senior Leverage Ratio at any time during any Reference Period
         ending during any period described in the table set forth below to
         exceed the ratio set forth opposite such period in such table:

                PERIOD                                           RATIO

                From July 1, 2000 through                        3.75 : 1
                June 30, 2001

                From July 1, 2001 through                        3.50 : 1
                June 30, 2002

                From July 1, 2002 through March 31, 2003         3.25 : 1

                From April 1, 2003 through                       3.00 : 1
                December 31, 2003

                From January 1, 2004 and thereafter              2.75 : 1"

         (g) MINIMUM NET WORTH. Sec. 11.5 of the Credit Agreement is hereby
amended by deleting such Sec. 11.5 in its entirety and substituting in lieu
thereof the following new Sec. 11.5:

                  "11.5. MINIMUM NET WORTH. TransTechnology will not permit
         Consolidated Net Worth at any time to be less than $110,000,000, as
         such amount shall be increased at the end of each fiscal quarter
         thereafter (commencing with the fiscal quarter ending on or around
         September 30, 2000), for the fiscal quarter thereafter, by the addition
         of seventy-five percent (75%) of Consolidated Net Income earned after
         June 30, 2000."

         Section 2. CONSENT TO TERMS OF REFINANCING SUBORDINATED DEBT. Subject
    to the conditions set forth herein, the Administrative Agent and the
    Majority Lenders hereby consent to the terms and conditions, including the
    subordination provisions, of the Subordinated Debt proposed to be issued by
    TransTechnology as summarized on EXHIBIT A attached hereto, and agree that
    any Indebtedness on such terms and subject to such conditions shall
    constitute "Subordinated Debt" for all purposes of the Credit Agreement
    (such Subordinated Debt, the "REFINANCING SUBORDINATED DEBT").

         Section 3.      CONSENT TO CERTAIN ASSET AND SHARE TRANSFERS

         (a) TransTechnology has advised the Administrative Agent that it wishes
to (i) transfer all of the assets (the "PALNUT ASSET TRANSFER") of its Palnut
Division, other than the real property located at Mountainside, New Jersey (the
"MOUNTAINSIDE PROPERTY"), to TransTechnology Engineered Components, LLC, a
Delaware limited liability company which is wholly-owned by TransTechnology
("TTEC"), (ii) lease the Mountainside Property to TTEC, (iii) change the name of
Industrial Retaining Ring Company, a New Jersey

<PAGE>   6
                                      -6-

corporation ("IRR"), to TransTechnology Engineered Rings USA, Inc. (following
such name change being referred to herein as "TTER"), and (iv) transfer one (1)
common share of TransTechnology Canada Corporation, an Ontario corporation
("TTC"), currently held by TransTechnology to TTEC (the "SHARE TRANSFER").

         (b) The Palnut Asset Transfer is prohibited under  Sec. 10.5.2(a) of
the Credit Agreement and the Share Transfer is prohibited under  Sec. 10 of the
Amended and Restated Securities Pledge Agreement dated as of June 30, 1995,
amended and restated as of August 31, 1999 (as amended and in effect from time
to time, the "ORIGINAL SECURITIES PLEDGE AGREEMENT") by and among
TransTechnology, SSP Industries ("SSP") and TransTechnology Seeger, Inc.
(together with TransTechnology and SSP, the "PLEDGORS"). TransTechnology has
requested that the Majority Lenders provide written consent to each of the
Palnut Asset Transfer and the Share Transfer, and to the extent necessary, waive
the provisions of Sec. 10.5.2(a) of the Credit Agreement and Sec. 10 of the
Original Securities Pledge Agreement to permit the Palnut Asset Transfer and the
Share Transfer.

         (c) The Majority Lenders hereby consent to the Palnut Asset Transfer
and the Share Transfer and waive the provisions of Sec. 10.5.2(a) of the Credit
Agreement and sec. 10 of the Original Securities Pledge Agreement solely to the
extent necessary to permit the Palnut Asset Transfer and the Share Transfer, on
the following conditions:

                  (i) the receipt by the Administrative Agent of a completed and
fully executed Perfection Certificate and the results of UCC searches for both
TTEC and TTER with respect to each of their Collateral, indicating no liens
other than Permitted Liens;

                  (ii) the receipt by the Administrative Agent of completed and
fully executed financing statements from TTEC and amendments to financing
statements with respect to the name change of IRR to TTER, as may, in each case,
be requested by the Administrative Agent;

                  (iii) the Administrative Agent's satisfactory review of the
proposed lease of the Mountainside Property by TransTechnology to TTEC;

                  (iv) the receipt by the Administrative Agent of a fully
executed Securities Pledge Agreement (the "TTEC SECURITIES PLEDGE AGREEMENT")
signed by TTEC, as pledgor, and TTC with respect to the one common share of TTC
held by TTEC, in substantially the form of the Original Securities Pledge
Agreement;

                  (v) the receipt by the Administrative Agent of a
fully-executed Amendment to the Original Securities Pledge Agreement signed by
each of the Pledgors to reflect the Share Transfer (the "SECURITIES PLEDGE
AMENDMENT");

                  (vi) the receipt by the Administrative Agent of evidence that
all corporate and limited liability company action necessary for the valid
execution, delivery and performance by the Borrowers, the Pledgors, TTEC, TTER
and TTC of the documents referred to in and the transactions contemplated by
this Sec. 3 shall have been duly and effectively taken;

                  (vii) the receipt by the Administrative Agent of an opinion of
counsel, which may be the general counsel of TransTechnology, addressed to the
Lenders and the Administrative Agent, relating to (i) the due authorization,
execution and delivery of the

<PAGE>   7
                                      -7-

TTEC Securities Pledge Agreement and the Securities Pledge Amendment and the
legality, validity and binding effect thereof, and (ii) the Palnut Asset
Transfer and the Share Transfer.

         Section 4. CONDITIONS TO EFFECTIVENESS. The effectiveness of this
Amendment shall be conditioned upon the satisfaction of the following conditions
precedent:

         Section 4.1. DELIVERY OF DOCUMENTS. This Amendment shall have been
executed and delivered to the Administrative Agent by each of the Borrowers, the
Guarantors, and the Majority Lenders.

         Section 4.2. LEGALITY OF TRANSACTION. No change in applicable law
shall have occurred as a consequence of which it shall have become and continue
to be unlawful on the date this Amendment is to become effective (a) for the
Administrative Agent or any Lender to perform any of its obligations under any
of the Loan Documents or (b) for any of the Borrowers to perform any of its
agreements or obligations under any of the Loan Documents.

         Section 4.3. PERFORMANCE. Each of the Borrowers shall have duly and
properly performed, complied with and observed in all material respects its
covenants, agreements and obligations contained in the Loan Documents required
to be performed, complied with or observed by it on or prior to the date this
Amendment is to become effective. No event shall have occurred on or prior to
the date this Amendment is to become effective and be continuing, and no
condition shall exist on the date this Amendment is to become effective, which
constitutes a Default or Event of Default.

         Section 4.4. PROCEEDINGS AND DOCUMENTS. All corporate, governmental
and other proceedings in connection with the transactions contemplated by this
Amendment and all instruments and documents incidental thereto shall be in form
and substance reasonably satisfactory to the Administrative Agent and the
Administrative Agent shall have received all such counterpart originals or
certified or other copies of all such instruments and documents as the
Administrative Agent shall have reasonably requested.

         Section 4.5. PAYMENT OF AMENDMENT FEE. The payment in cash of the
Amendment Fee (as defined in sec. 8 below) to the Administrative Agent on behalf
of the Lenders.

         Section 5. REPRESENTATIONS AND WARRANTIES. Each of the Borrowers hereby
represents and warrants to the Lenders as follows:

         (a) The representations and warranties of such Borrower and of each
Guarantor contained in the Credit Agreement and the other Loan Documents to
which such Borrower or Guarantor, as the case may be, is a party were true and
correct in all material respects when made and continue to be true and correct
in all material respects on the date hereof, except that the financial
statements referred to in the representations and warranties contained in the
Credit Agreement shall be the financial statements of TransTechnology and its
Subsidiaries most recently delivered to the Administrative Agent, and except as
such representations and warranties are affected by the transactions
contemplated hereby;

         (b) The execution, delivery and performance by such Borrower of this
Amendment and the consummation of the transactions contemplated hereby: (i) are
within the corporate powers of such Borrower and have been duly authorized by
all necessary corporate action on the part of such Borrower, (ii) do not require
any approval or consent of,

<PAGE>   8
                                      -8-

or filing with, any governmental agency or authority, or any other person,
association or entity, which bears on the validity or enforceability of this
Amendment and which is required by law or any regulation or rule of any agency
or authority, or other person, association or entity, (iii) do not violate any
provisions of any order, writ, judgment, injunction, decree, determination or
award presently in effect in which such Borrower is named, any law, regulation
or rule binding on or applicable to such Borrower or any provision of the
charter documents or by-laws of such Borrower, (iv) do not result in any breach
of or constitute a default under any agreement or instrument to which such
Borrower is a party or to which it or any of its properties are bound, including
without limitation any indenture, credit or loan agreement, lease, debt
instrument or mortgage, except for such breaches and defaults which would not
have a material adverse effect on such Borrower and its Subsidiaries taken as a
whole, and (v) do not result in or require the creation or imposition of any
mortgage, deed of trust, pledge or encumbrance of any nature upon any of the
assets or properties of such Borrower; and

         (c) This Amendment and the Credit Agreement as amended hereby
constitute the legal, valid and binding obligations of such Borrower,
enforceable against such Borrower in accordance with their respective terms,
PROVIDED that (i) enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application
affecting the rights and remedies of creditors, and (ii) enforcement may be
subject to general principles of equity, and the availability of the remedies of
specific performance and injunctive relief may be subject to the discretion of
the court before which any proceeding for such remedies may be brought.

         Section 6. NO OTHER AMENDMENTS. Except as expressly provided in this
Amendment, all of the terms and conditions of the Credit Agreement and the other
Loan Documents shall remain in full force and effect.

         Section 7. EXECUTION IN COUNTERPARTS. This Amendment may be executed
in any number of counterparts and by each party on a separate counterpart, each
of which when so executed and delivered shall be an original, but all of which
together shall constitute one instrument. In proving this Amendment, it shall
not be necessary to produce or account for more than one such counterpart signed
by the party against whom enforcement is sought.

         Section 8. AMENDMENT FEE. In connection with the approval of this
Amendment, TransTechnology hereby agrees to pay to the Administrative Agent for
the pro-rata benefit of each Lender consenting to this Amendment an amendment
fee equal to 1/4% of each such consenting Lender's Commitment (the "AMENDMENT
FEE").

         Section 9. EFFECTIVE DATE. Subject to the satisfaction of the
conditions precedent set forth in sec. 4 hereof, this Amendment shall be deemed
to be effective as of the date hereof (the "EFFECTIVE DATE").

                   Remainder of page intentionally left blank.

<PAGE>   9

         IN WITNESS WHEREOF, the undersigned have duly executed this Consent and
Amendment Agreement No. 1 as a sealed instrument as of the date first set forth
above.

                                  TRANSTECHNOLOGY CORPORATION

                                  By: /s/ Joseph F. Spanier
                                      ----------------------------------------
                                       Name:   Joseph F. Spanier
                                       Title:  Vice President, Chief
                                       Financial Officer

                                  TRANSTECHNOLOGY SEEGER-ORBIS GmbH

                                  By: /s/ Michael J. Berthelot
                                      -----------------------------------------
                                       Name:        Michael J. Berthelot
                                       Title:       Managing Director

                                  TRANSTECHNOLOGY (GB) LIMITED

                                  By: /s/ Michael J. Berthelot
                                      -----------------------------------------
                                       Name:        Michael J. Berthelot
                                       Title:       Managing Director

                                  By: /s/ Gerald C. Harvey
                                      ---------------------------------------
                                       Name:        Gerald C. Harvey
                                       Title:       Director

                                      S-1
<PAGE>   10

                                  FLEET NATIONAL BANK
                                  (f/k/a  BankBoston,  N.A.),  individually and
                                  as  Administrative Agent

                                  By: /s/ Maura C. Wadlinger
                                      --------------------------------------
                                      Maura C. Wadlinger
                                      Vice President

                                  ABN AMRO BANK N.V.

                                  By:  /s/ Donald Sutton
                                       --------------------------------------
                                  Name:      Donald Sutton
                                  Title:     Vice President

                                  By:  /s/ Richard Schrage
                                       --------------------------------------
                                  Name:      Richard Schrage
                                  Title:     Vice President

                                  BANK ONE, NA (f/k/a The First National Bank of
                                   Chicago)

                                  By: /s/ Jeffrey Lubatkin
                                      ---------------------------------------
                                  Name:      Jeffrey Lubatkin
                                  Title:     Vice President

                                  THE BANK OF NEW YORK

                                  By:  /s/ Jeffrey S. Witte
                                       ---------------------------------------
                                  Name:      Jeffrey S. Witte
                                  Title:     Vice President

                                       S-2

<PAGE>   11

                                  KEY CORPORATE CAPITAL INC.

                                  By: /s/ Robert F. Pollis, Jr.
                                      ------------------------------------------
                                  Name:      Robert F. Pollis, Jr.
                                  Title:     Senior Vice President

                                  BANK OF NOVA SCOTIA

                                  By:  /s/ Brian S. Allen
                                       ---------------------------------------
                                  Name:      Brian S. Allen
                                  Title:     Managing Director

                                  COMERICA BANK

                                  By: /s/ John M. Costa
                                      --------------------------------------
                                  Name:      John M. Costa
                                  Title:     First Vice President

                                  DRESDNER BANK, AG, NEW YORK AND GRAND CAYMAN
                                  BRANCHES

                                  By:  /s/ Elizabeth Arditti
                                       ----------------------------------------
                                  Name:      Elizabeth Arditti
                                  Title:     Assistant Treasurer

                                  By:  /s/ Gabriela Fields
                                       ---------------------------------------
                                  Name:      Gabriela Fields
                                  Title:     Assistant Treasurer

                                  SUMMIT BANK

                                  By:  /s/ Richard J. Banning
                                       ---------------------------------------
                                  Name:      Richard J. Banning
                                  Title:     Vice President

                                       S-3
<PAGE>   12

The Guarantors under (and as defined in) the Subsidiary Guaranty hereby
acknowledge that they have read and are aware of the provisions of this
Amendment and hereby reaffirm their absolute and unconditional guaranty of the
Borrowers' payment and performance of their obligations to the Lenders and the
Administrative Agent under the Credit Agreement as amended hereby.

                                  TRANSTECHNOLOGY ACQUISITION CORPORATION

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  PALNUT FASTENERS, INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  INDUSTRIAL RETAINING RING COMPANY

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name:  Gerald C. Harvey
                                           Title: Vice President and Secretary

                                  RETAINERS, INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  S-4
<PAGE>   13

                                  RANCHO TRANSTECHNOLOGY CORPORATION

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  TRANSTECHNOLOGY SYSTEMS & SERVICES, INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  ELECTRONIC CONNECTIONS AND ASSEMBLIES, INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  SSP INDUSTRIES

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  SSP INTERNATIONAL SALES, INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  S-5
<PAGE>   14

                                  TRANSTECHNOLOGY SEEGER INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  SEEGER INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  TCR CORPORATION

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  AEROSPACE RIVET MANUFACTURERS CORPORATION

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  NORCO, INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                       S-6
<PAGE>   15

                                  AEROSPACE RIVET MANUFACTURERS CORPORATION

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  ELLISON RING & WASHER INC.

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  TRANSTECHNOLOGY ENGINEERED
                                  COMPONENTS, LLC

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                  TRANSTECHNOLOGY CANADA CORPORATION

                                  By:  /s/ Gerald C. Harvey
                                       --------------------------------------
                                           Name: Gerald C. Harvey
                                           Title:   Vice President and Secretary

                                       S-7
<PAGE>   16

                                                                    EXHIBIT A to
                                                           Consent and Amendment
                                                                 Agreement No. 1

                     TERMS OF REFINANCING SUBORDINATED DEBT
                     --------------------------------------

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