Document:

Exhibit 10.11.4

FOURTH AMENDMENT TO CREDIT
AGREEMENT

THIS
FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Fourth Amendment”) is made
and entered into as of January 31, 2007, by and among the financial
institutions identified on the signature pages hereof (such financial
institutions, together with their respective successors and assigns, are
referred to hereinafter each individually as a “Lender” and collectively
as the “Lenders”), WELLS FARGO FOOTHILL, INC., a California corporation,
as arranger and administrative agent for the Lenders (in such capacities,
together with any successor arranger and administrative agent, “Agent”),
and TRC COMPANIES, INC., a Delaware corporation (the “Administrative
Borrower”), on behalf of all Borrowers.

WITNESSETH:

WHEREAS,
the Administrative Borrower, the Administrative Borrower’s Subsidiaries party
thereto, the Lenders and Agent are parties to that certain Credit Agreement,
dated as of July 17, 2006 (as amended as of October 31, 2006, as of
November 29, 2006, and as of December 29, 2006, and as the same may be amended,
modified, supplemented or amended and restated from time to time, the “Credit
Agreement”);

WHEREAS,
Administrative Borrower has an equity ownership interest in Center Avenue
Holdings, LLC, a New Jersey limited liability company (the “Joint Venture
Entity”);

WHEREAS,
the Joint Venture Entity desires to enter into a Credit Agreement (the “Subordinated
Loan Agreement”) with SYNERGY BANK, a federally chartered stock savings
bank, to finance the purchase of certain real estate; and

WHEREAS,
Agent, Lenders and the Borrowers have agreed to amend the Credit Agreement and
to the consent and the waivers, all as herein provided subject to the terms and
conditions set forth herein;

NOW,
THEREFORE, in consideration of the
agreements and provisions herein contained, the parties hereto do hereby agree
as follows:

Section 1.              Definitions.  Any
capitalized terms used but not otherwise defined herein shall have the meanings
ascribed to such terms in the Credit Agreement.

Section 2.              Amendments
to Credit Agreement.  Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended, as of the Effective Date
(defined below), as follows:

2.01.       Amendment
to Section 3.6(b). 
Section 3.6(b) of the Credit Agreement is hereby amended by
deleting the words “within 30 days after the Closing Date” and inserting “on or
prior to February 28, 2007” in lieu thereof.

2.02.       Amendment
to Section 6.1.  Section
6.1 of the Credit Agreement is hereby amended as follows: (a) the word “and”
is hereby deleted at the end of clause (e) thereof; 

 

(b) the period at
the end of clause (f) thereof is replaced by “; and”; and (c) the following
clause (g) is hereby added after the end of clause (f) thereof:

“(g)         Indebtedness in an aggregate amount not
to exceed $50,000 pursuant to a loan agreement with the City of Lowell,
Massachusetts acting through its Division of Planning and Development in
connection with Borrowers’ relocation to new office space in the City of
Lowell, Massachusetts so long as such Indebtedness is not secured by any of the
assets of any Borrower or Guarantor.”

2.03.       Amendments
to Schedule 1.1.

(a)           The definition of “Permitted
Dispositions” is hereby amended as follows: (i) the word “and” is hereby
deleted at the end of clause (f) thereof; (ii) the period at the end of clause
(g) thereof is replaced by “; and”; and (iii) the following clause (h) is
hereby added after the end of clause (g) thereof:

“(h)         the sale of Omni Environmental, Inc., a
New Jersey corporation, pursuant to that certain Agreement and Plan of Merger
dated as of January 30, 2007, so long as the proceeds thereof are applied in
accordance with Section 2.4(b).”

(b)           The definition of “Permitted
Investments” is hereby amended and restated in its entirety by replacing it
with the following:

“Permitted
Investments” means (a) Investments in cash and Cash Equivalents,
(b) Investments in negotiable instruments for collection, (c) advances
made in connection with purchases of goods or services in the ordinary course
of business, (d) Investments received in settlement of amounts due to a
Borrower or any Subsidiary of a Borrower effected in the ordinary course of
business or owing to a Borrower or any Subsidiary of a Borrower as a result of
Insolvency Proceedings involving an Account Debtor or upon the foreclosure or
enforcement of any Lien in favor of a Borrower or any Subsidiary of a Borrower,
(e) investments, including intercompany loans, made by any Borrower or
Guarantor in any other Borrower or Guarantor so long as such investments, if in
the form of indebtedness, are not secured by any of the assets of any Borrower
or Guarantor and are subject to the Intercompany Subordination Agreement, and
(f) Investments in Center Avenue Holdings, LLC, a New Jersey limited liability
company, Metuchen Realty Acquisition, LLC, a New Jersey limited liability
company (“MRA”), or other joint venture investments in an aggregate
amount not to exceed, during the term of this Agreement, the sum of (i)
$2,000,000 plus (ii) amounts actually repaid to TRC by Ellis Block, the other
member of MRA (such amounts estimated to be approximately $900,000), so long as
(i) no Default or Event of Default shall have occurred and be continuing, both
immediately before and immediately after giving effect to any such Investment,
and (ii) such Investments are made solely with (x) cash on hand at the time of
the effective date of the Fourth Amendment to Credit Agreement dated as of
January 31, 2007 (the “Fourth Amendment”), among Agent, the Lenders and
the Administrative Borrower or (y) cash raised from the proceeds of equity
issuances made by Administrative Borrower after the effective date of such
Fourth Amendment.

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2.04.       Amendment
to Schedule 5.3. 
The left hand column in the second row of the table in Schedule 5.3
to the Credit Agreement is hereby amended by deleting the words “on or prior to
January 31, 2007” therein and inserting “on or prior to February 28, 2007”
in lieu thereof.

Section 3.              Representations and Warranties.  In order to induce Agent and the Lenders to enter into this Fourth
Amendment, the Administrative Borrower, for itself and on behalf of all of the
other Borrowers, hereby represents and warrants that:

3.01.       No Default.  At and as of the date of this
Fourth Amendment and at and as of the Effective Date and both prior to and
after giving effect to this Fourth Amendment, no Default or Event of Default
exists and is continuing.

3.02.       Representations and Warranties True and Correct.  At and as
of the date of this Fourth Amendment and both prior to and after giving effect
to this Fourth Amendment, each of the representations and warranties contained
in the Credit Agreement and other Loan Documents is true and correct in all
material respects.

3.03.       Corporate Power, Etc. 
Administrative Borrower (a) has all requisite corporate power and
authority to execute and deliver this Fourth Amendment and to consummate the
transactions contemplated hereby for itself and, in the case of Administrative
Borrower, on behalf of all of the other Borrowers, and (b) has taken all
action, corporate or otherwise, necessary to authorize the execution and
delivery of this Fourth Amendment and the consummation of the transactions
contemplated hereby for itself and, in the case of Administrative Borrower, on
behalf of all of the other Borrowers.

3.04.       No Conflict.  The execution, delivery and
performance by Administrative Borrower (on behalf of itself and all of the
other Borrowers) of this Fourth Amendment will not (a) violate any provision of
federal, state, or local law or regulation applicable to any Borrower, the
Governing Documents of any Borrower, or any order, judgment or decree of any
court or other Governmental Authority binding on any Borrower, (b) conflict
with or result in any breach of, or constitute (with due notice or lapse of
time or both) a default under any material contractual obligation of any
Borrower, (c) result in or require the creation or imposition of any Lien of
any nature whatsoever upon any properties or assets of any Borrower, other than
Permitted Liens, or (d) require any approval of any Borrower’s interestholders
or any approval or consent of any Person under any material contractual
obligation of any Borrower, other than consents or approvals that have been
obtained and that are still in force and effect.

3.05.       Binding Effect.  This
Fourth Amendment has been duly executed and delivered by the Administrative
Borrower (on behalf of itself and all of the other Borrowers) and constitutes
the legal, valid and binding obligation of the Administrative Borrower (on
behalf of itself and all of the other Borrowers), enforceable against the
Administrative Borrower (on behalf of itself and all of the other Borrowers) in
accordance with its terms, except as such enforceability may be limited by (a)
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws, now or hereafter in effect, relating to or affecting the enforcement of
creditors’ rights generally, and (b) the application of general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

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Section 4.              Conditions. 
This Fourth
Amendment shall be effective upon the fulfillment by the Borrowers, in a manner
satisfactory to Agent and the Lenders, of all of the following conditions precedent
set forth in this Section 4 (such date, the “Effective Date”):

4.01.       Execution of the Fourth Amendment.  Each of
the parties hereto shall have executed an original counterpart of this Fourth
Amendment and shall have delivered (including by way of telefacsimile or
electronic mail) the same to Agent.

4.02.       Amendment Fee.  Borrowers shall have paid
to Agent, for its own account, in immediately available funds an amendment fee
equal to $30,000.00.

4.03.       Representations and Warranties.  As of the Effective Date, the representations and warranties set forth in
Section 3 hereof shall be true and correct.

4.04.       Compliance with Terms.  Borrowers shall have complied in all respects
with the terms hereof and of any other agreement, document, instrument or other
writing to be delivered by Borrowers in connection herewith.

4.05.       Delivery
of Pledge Supplement. 
Administrative Borrower shall deliver to Agent, an executed Pledged
Interest Addendum pursuant to Section 6 of the Security Agreement with respect
to a pledge of the Administrative Borrower’s 70% interest in the Joint Venture
Entity together with any certificate(s) evidencing such interests and stock
powers duly executed in blank.

4.06.       Delivery of Other Documents.  Agent shall have received all
such other documents executed by the Administrative Borrower in connection with
the Subordinated Loan Agreement (the “Subordinated Loan Documents”) and
all other instruments, documents and agreements as Agent may reasonably
request, in form and substance reasonably satisfactory to Agent.

Section 5.              Joint
Venture Documents.  Administrative Borrower shall deliver to Agent
promptly after execution thereof, all material documents executed in connection
with the Joint Venture Entity and the Subordinated Loan Documents.

Section 6.              Miscellaneous.

6.01.       Continuing Effect.  Except as
specifically provided herein, the Credit Agreement and the other Loan Documents
shall remain in full force and effect in accordance with their respective terms
and are hereby ratified and confirmed in all respects.

6.02.       No Waiver; Reservation of Rights.  This Fourth Amendment is limited as specified and the execution, delivery
and effectiveness of this Fourth Amendment shall not operate as a modification,
acceptance or waiver of any provision of the Credit Agreement, or any other
Loan Document, except as specifically set forth herein.  Notwithstanding anything contained in
this Fourth Amendment to the contrary, Agent and the Lenders expressly reserve
the right to exercise any and all of their rights and remedies under the Credit
Agreement, any other Loan Document and applicable law in respect of any Default
or Event of Default.

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6.03.       References.

(a)           From
and after the Effective Date, (i) the Credit Agreement, the other Loan Documents and all agreements,
instruments and documents executed and delivered in connection with any of the
foregoing shall each be deemed amended hereby to the extent necessary, if any,
to give effect to the provisions of this Fourth Amendment and (ii) all of
the terms and provisions of this Fourth Amendment are hereby incorporated by
reference into the Credit Agreement, as applicable, as if such terms and
provisions were set forth in full therein, as applicable.

(b)           From
and after the Effective Date, (i) all references in the Credit Agreement
to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import
referring to the Credit Agreement shall mean the Credit Agreement as amended
hereby and (ii) all references in the Credit Agreement, the other Loan
Documents or any other agreement, instrument or document executed and delivered
in connection therewith to  “Credit
Agreement”, “thereto”, “thereof”, “thereunder” or words of like import
referring to the Credit Agreement shall mean the Credit Agreement as amended
hereby.

6.04.       Governing Law.  THIS FOURTH AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

6.05.       Severability.  The provisions of this Fourth
Amendment are severable, and if any clause or provision shall be held invalid
or unenforceable in whole or in part in any jurisdiction, then such invalidity
or unenforceability shall affect only such clause or provision, or part
thereof, in such jurisdiction and shall not in any manner affect such clause or
provision in any other jurisdiction, or any other clause or provision in this
Fourth Amendment in any jurisdiction.

6.06.       Counterparts.  This Fourth Amendment may be
executed in any number of counterparts, each of which counterparts when
executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument. 
Delivery of an executed counterpart of this Fourth Amendment by
telefacsimile or electronic mail shall be equally effective as delivery of a
manually executed counterpart.  A
complete set of counterparts shall be lodged with the Administrative Borrower,
Agent and each Lender.

6.07.       Headings.  Section headings in this Fourth
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Fourth Amendment for any other purpose.

6.08.       Binding Effect; Assignment.  This
Fourth Amendment shall be binding upon and inure to the benefit of Borrowers,
Agent and the Lenders and their respective successors and assigns; provided,
however, that the rights and obligations of Borrowers under this Fourth
Amendment shall not be assigned or delegated without the prior written consent
of Agent and the Lenders.

6.09.       Expenses.  Borrowers agree to pay Agent upon
demand, for all reasonable expenses, including reasonable fees of attorneys and
paralegals for Agent and the Lenders (who 

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may be employees of Agent or the Lenders), incurred by Agent and the
Lenders in connection with the preparation, negotiation and execution of this
Fourth Amendment and any document required to be furnished herewith.

6.10.       Integration.  This Fourth Amendment, together
with the other Loan Documents, incorporates all negotiations of the parties
hereto with respect to the subject matter hereof and is the final expression
and agreement of the parties hereto with respect to the subject matter hereof.

[Signature page follows]

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IN WITNESS WHEREOF, the parties hereto have caused this
Fourth Amendment to be executed by their respective officers thereunto duly
authorized, as of the date first above written.

	
  

  	
   

  	
  ADMINISTRATIVE BORROWER:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TRC COMPANIES, INC., a
  Delaware corporation, as Administrative Borrower, on behalf of itself and all
  other Borrowers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Martin H. Dodd

  
	
   

  	
   

  	
  Name:   Martin
  H. Dodd

  
	
   

  	
   

  	
  Title:     Senior
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AGENT AND LENDERS:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WELLS FARGO FOOTHILL, INC.,

  as Agent and as a Lender

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Jason P. Shanahan

  
	
   

  	
   

  	
  Name:    Jason
  P. Shanahan

  
	
   

  	
   

  	
  Title:      Vice
  President

  

 

 7EXHIBIT 10.1

 

EXECUTION VERSION

$300,000,000

TransDigm Inc.

73⁄4% Senior Subordinated
Notes due 2014

PURCHASE AGREEMENT

January 31, 2007

CREDIT
SUISSE SECURITIES (USA) LLC (“Credit Suisse”)

LEHMAN BROTHERS INC. (“Lehman”)
  As representatives of the several initial
purchasers

c/o Credit Suisse Securities (USA) LLC

Eleven Madison Avenue,

New York, N.Y. 10010-3629

and

c/o Lehman Brothers Inc.

745 Seventh Avenue

New York, N.Y. 10019

Dear Sirs:

1.  TransDigm Inc., a Delaware corporation (the “Company”), proposes, subject to the terms and conditions
stated herein, to issue and sell to the several initial purchasers named in Schedule
A hereto (collectively, the “Purchasers”)
U.S.$300,000,000 principal amount of its 73⁄4% Senior Subordinated Notes due 2014
(the “Offered Securities”) to be issued as
additional securities under the indenture dated as of June 23, 2006, among the
Company, TransDigm Group Incorporated (“TD Group”), the
subsidiary guarantors from time to time party thereto and The Bank of New York
Trust Company, N.A., as trustee (the “Trustee”), as
supplemented by the First Supplemental Indenture thereto, dated as of November
2, 2006 (as so supplemented, the “Indenture”).  The United States Securities Act of 1933, as
amended, is herein referred to as the “Securities Act.”

As described under the heading “The Transactions” in
the Preliminary Offering Circular (as defined below) and the Final Offering
Circular (as defined below), the Company intends to acquire (the “Acquisition”) all of the equity interests of Aviation
Technologies, Inc., a Delaware corporation (“ATI”).

In order to consummate the Acquisition, the Company
has organized Project Coffee Acquisition Co., a Delaware corporation and a
wholly-owned subsidiary of the Company (“Merger Sub”).  Pursuant to the Agreement and Plan of Merger,
dated as of January 9, 2007 (the “Merger Agreement”),
among the Company, Merger Sub and ATI, Merger Sub will be merged with and into
ATI, with ATI continuing as the surviving corporation and a wholly-owned
subsidiary of the Company (the “Merger”).

In connection with the Acquisition, the Company will
amend its existing credit agreement, dated as of June 23, 2006 (the “Existing Credit Agreement”), to, among other things, (i)
provide for an increase in the revolving credit facility thereunder of
$50,000,000, (ii) provide for an incremental term loan of $130,000,000 (the “Incremental Term Loan”) and (iii) make certain other
amendments to the terms 

 

thereof as described more
fully in the Preliminary Offering Circular and the Final Offering Circular (as
so amended, the “Amended Credit Agreement”).

The Acquisition, the issuance of the Offered
Securities and the execution of (i) the Amended Credit Agreement, (ii)
this Agreement, (iii) a supplemental indenture to the Indenture (the “Supplemental Indenture”), which Supplemental Indenture will
cause the ATI Guarantors (as defined below) to guarantee the Offered Securities
effective upon the consummation of the Merger, (iv) the Registration
Rights Agreement (as defined below) and (v) counterparts to this Agreement
and the Registration Rights Agreement by the ATI Guarantors upon consummation
of the Merger and the consummation of all other related transactions
contemplated by the Merger Agreement, this Agreement or described in the
Preliminary Offering Circular and the Final Offering Circular under the
headings “The Transactions” are referred to herein collectively as the “Transactions”.

The Offered Securities under the Indenture will be
fully and unconditionally, and jointly and severally, guaranteed on a senior
subordinated unsecured basis by (i) TD Group, (ii) each of the subsidiaries of
the Company listed on Schedule B hereto (the “Company
Guarantors”) and (iii) effective upon the consummation of the
Merger, ATI and each of its subsidiaries listed on Schedule C hereto
(ATI and the subsidiaries of ATI listed on Schedule C hereto are
sometimes collectively referred to herein as the “ATI
Guarantors”).  In connection
therewith, and concurrently with the consummation of the Merger, each of the ATI
Guarantors will each execute the Supplemental Indenture and counterparts to
this Agreement and the Registration Rights Agreement.  The guarantees described in this paragraph
are collectively referred to as the “Guarantees,”
and TD Group, the Company Guarantors and the ATI Guarantors are collectively
referred to as the “Guarantors”.

The holders of the Offered Securities will be entitled
to the benefits of a Registration Rights Agreement to be entered into on the
Closing Date (as defined below) among the Company, the Guarantors and Credit
Suisse and Lehman, as representatives of the several Purchasers (the “Registration Rights Agreement”), pursuant
to which, and subject to the terms and conditions set forth therein, the
Company shall agree to file a registration statement with the Securities and
Exchange Commission (the “Commission”)
registering the resale of the Offered Securities under the Securities Act; provided, however, that
the undertakings of the ATI Guarantors as set forth in the Registration Rights Agreement
will not become effective until such Guarantors execute their respective
counterparts to the Registration Rights Agreement.

This Agreement (including the counterparts to be
executed concurrently with the consummation of the Merger by the ATI Guarantors),
the Indenture, the Supplemental Indenture (to be executed concurrently with the
consummation of the Merger by the ATI Guarantors), the Offered Securities and
the Registration Rights Agreement (including the counterparts to be executed
concurrently with the consummation of the Merger by the ATI Guarantors) are
referred to in this Agreement collectively as the “Operative
Documents.”  The Merger
Agreement, the Amended Credit Agreement and the Operative Documents are
referred to in this Agreement collectively as the “Transaction
Documents”.

References in this Agreement to the subsidiaries of
the Company or any Guarantor shall include all direct and indirect subsidiaries
of the Company or such Guarantor, both on the date of this Agreement and after
the consummation of the Merger, and the representations and warranties in this
Agreement with respect to the Company or any Guarantor and their respective
subsidiaries shall be deemed to be representations and warranties with respect
to the Company and the Guarantors and their respective subsidiaries both prior
to and after the consummation of the Merger.

The Company and the
Guarantors hereby agree with the Purchasers as follows:

2.  Representations
and Warranties of the Company and the Guarantors.  The Company and the Guarantors, jointly and
severally, represent and warrant to, and agree with, the Purchasers that:

 

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(a)  A preliminary offering circular (the “Preliminary Offering Circular”) relating to
the Offered Securities to be offered by the Purchasers and a final offering
circular (the “Final Offering Circular”)disclosing the offering price
and other final terms of the Offered Securities and dated as of the date of
this Agreement (even if finalized and issued subsequent to the date of this
Agreement) have been or will be prepared by the Company.  “General
Disclosure Package” means the Preliminary Offering Circular,
together with any Issuer Free Writing Communication (as hereinafter defined)
existing at the Applicable Time (as hereinafter defined), including the
Confidential Offering Circular Supplement, dated January 30, 2007 (the “Supplement”), and the information which is
intended for general distribution to prospective investors, as evidenced by its
being specified in Schedule D to this Agreement (including the term
sheet listing the final terms of the Offered Securities and their offering,
included in Schedule E to this Agreement, which is referred to as the “Terms Communication”).  “Applicable
Time” means 10:55 a.m. (New York City time) on the date of this
Agreement.  As of the date of this
Agreement, the Final Offering Circular does not and, as of the Closing Date,
the Final Offering Circular will not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.  At the Applicable
Time, neither (i) the General Disclosure Package, nor (ii) any individual
Supplemental Marketing Material (as hereinafter defined), when considered
together with the General Disclosure Package, included, or will as of the
Closing Date include, any untrue statement of a material fact or omitted, or
will as of the Closing Date omit, to state any material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading.  The
preceding two sentences do not apply to statements in or omissions from the
Preliminary Offering Circular, the Final Offering Circular, the General
Disclosure Package or any Supplemental Marketing Material based upon written
information furnished to the Company by any Purchaser through Credit Suisse
specifically for use therein, it being understood and agreed that the only such
information is that described as such in Section 8(b) hereof.

“Free Writing Communication” means a
written communication (as such term is defined in Rule 405 under the
Securities Act) that constitutes an offer to sell or a solicitation of an offer
to buy the Offered Securities and is made by means other than the Preliminary
Offering Circular or the Final Offering Circular.  “Issuer Free Writing
Communication” means a Free Writing Communication prepared by or on
behalf of the Company, used or referred to by the Company or containing a
description of the final terms of the Offered Securities or of their offering,
in the form retained in the Company’s records. 
“Supplemental Marketing Material” means
any Issuer Free Writing Communication other than any Issuer Free Writing
Communication specified in Schedule D to this Agreement.

(b)  Each of the Company and TD
Group has been duly incorporated and is an existing corporation in good
standing under the laws of the State of Delaware, with power and authority
(corporate and other) to own its properties and conduct its business as
described in the General Disclosure Package; and the Company is duly qualified
to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its
business requires such qualification, except where the failure to be so
qualified or in good standing would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on the condition
(financial or otherwise), business, properties or results of operations of TD
Group and its subsidiaries, taken as a whole (“Material Adverse Effect”).

(c)  Each subsidiary of the
Company has been duly incorporated and is an existing corporation in good
standing under the laws of the jurisdiction of its incorporation, with power
and authority (corporate and other) to own its properties and conduct its
business as described in the General Disclosure Package; and each subsidiary of
the Company is duly qualified to do business as a foreign corporation in good
standing in all other jurisdictions in which its ownership or lease of property
or the conduct of its business requires such qualification, except where the 

 

 3
 

 

failure to be
so qualified or in good standing would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect; all of the issued and
outstanding capital stock of each subsidiary of the Company has been duly
authorized and validly issued and is fully paid and nonassessable; and the
capital stock of each subsidiary owned by the Company, directly or through
subsidiaries, is owned free from liens, encumbrances and defects, except for
liens, encumbrances or defects on the capital stock of the subsidiaries (direct
and indirect) of the Company granted in favor of the lenders under or related
to the Amended Credit Agreement; provided, however, that the foregoing
representations and warranties as to the liens, encumbrances and defects on the
capital stock of the subsidiaries of the Company shall only be made with
respect to the ATI Guarantors on the Closing Date after giving effect to the
repayment of ATI’s existing indebtedness as further described in the General
Disclosure Package.

(d)  The Indenture has been duly
authorized, executed and delivered by the Company, TD Group and the Company
Guarantors; the Offered Securities have been duly authorized by the Company,
and when the Offered Securities are delivered and paid for pursuant to this
letter agreement (this “Agreement”)
on the Closing Date (as defined below), such Offered Securities will have been
duly executed, authenticated, issued and delivered, will be consistent in all
material respects with the information in the General Disclosure Package and
will conform in all material respects to the description thereof contained in
the Final Offering Circular,and the Indenture and such Offered
Securities will constitute valid and legally binding obligations of the
Company, enforceable in accordance with their terms, except that the
enforcement thereof may be limited by (i) bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and (ii) general equity principles
and the discretion of the court before which any proceeding therefor may be
brought, whether at law or in equity.

(e)  Upon the consummation of the
Merger, the Supplemental Indenture and the Guarantee of the Offered Securities
by the ATI Guarantors will be duly authorized, executed and delivered by each
of the ATI Guarantors and will be consistent in all material respects with the
information in the General Disclosure Package and will conform to the
description thereof contained in the Final Offering Circular. When the Offered
Securities and the Guarantees have been issued, executed and authenticated in
accordance with the terms of this Agreement, the Indenture and the Supplemental
Indenture, each Guarantee of each ATI Guarantor with respect to such Offered
Securities will constitute a valid and legally binding obligation of such ATI
Guarantor, enforceable in accordance with its terms, except that the
enforcement thereof may be limited by (i) bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and (ii) general equity
principles and the discretion of the court before which any proceeding therefor
may be brought, whether at law or in equity.

(f)  On the Closing Date, the
Indenture, as supplemented by the Supplemental Indenture, will conform in all
material respects to the requirements of the United States Trust Indenture Act
of 1939, as amended (the “Trust Indenture Act”),
and the rules and regulations of the Commission applicable to an indenture
which is qualified thereunder.

(g)  The Exchange Securities (as
defined in the Registration Rights Agreement) have been, or as of the
Registered Exchange Offer (as defined in the Registration Rights Agreement)
will be, duly and validly authorized by the Company and, when duly executed by
the Company in accordance with the terms of the Indenture upon exchange for the
Initial Securities (as defined in the Registration Rights Agreement), will be
validly issued and delivered, and will constitute valid and binding obligations
of the Company entitled to the benefits of the Indenture, enforceable in
accordance with their terms, except that the enforcement thereof may be limited
by (1) bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and (2) general equity principles and 

 

 4
 

 

the discretion
of the court before which any proceeding therefor may be brought, whether at
law or in equity.

(h)  The Guarantee of the
Exchange Securities by each of the Guarantors (each, an “Exchange Security Guarantee” and together,
the “Exchange Security Guarantees”)
will be, as of the Closing Date or as of the Registered Exchange Offer, duly
authorized by each of the Guarantors.  When
the Exchange Security Guarantees have been issued, executed and authenticated
in accordance with the terms of the Registered Exchange Offer, the Indenture
and the Supplemental Indenture, the Exchange Security Guarantee of each
Guarantor will constitute a valid and legally binding obligation of such
Guarantor, enforceable in accordance with its terms, except that the
enforcement thereof may be limited by (i) bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and (ii) general
equity principles and the discretion of the court before which any proceeding
therefor may be brought, whether at law or in equity.

(i)  Except as disclosed in the
General Disclosure Package, there are no contracts, agreements or
understandings between the Company or the Guarantors, on the one hand, and any
person, on the other hand, that would give rise to a valid claim against the
Company, any Guarantor  or any Purchaser
for a brokerage commission, finder’s fee or other like payment in connection
with the transactions contemplated by this Agreement.

(j)  No consent, approval,
authorization, or order of, or filing with, any governmental agency or body or
any court is required for (i) the consummation by the Company or the Guarantors
of the transactions contemplated by this Agreement or the Registration Rights
Agreement in connection with the issuance and sale of the Offered Securities or
the Exchange Securities by the Company and the issuance of the Guarantees or
the Exchange Security Guarantees by the Guarantors or (ii) the consummation of
the other transactions contemplated by the Transaction Documents, in any such
case except for (A) the filing with the Secretary of State of the State of
Delaware of the merger certificate effectuating the Merger, (B) as have been
obtained or will be obtained prior to the Closing Date, (C) as may be required
under state securities or “Blue Sky” laws in connection with the purchase and
distribution of the Offered Securities by the Purchasers, (D) the order of
the Commission declaring effective the Exchange Offer Registration Statement
or, if required, the Shelf Registration Statement (each as defined in the
Registration Rights Agreement) and (E) in the case of clause (ii) immediately
above only, as set forth on Schedule 4.2(b) of the Merger Agreement (the
failure of which to obtain would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect).

(k)  The execution, delivery and
performance by each of the Company and the Guarantors of the Transaction
Documents will not result in a breach or violation of any of the terms and
provisions of, or constitute a default under, (i) any statute or any rule,
regulation or order of any governmental agency or body or any court, domestic
or foreign, having jurisdiction over those parties or any of their properties,
(ii) assuming that the Amended Credit Agreement has become effective, any
agreement or instrument to which any of those parties is a party or by which
any of those parties is bound or to which any of the properties of those
parties is subject, or (iii) the charter or by-laws of any of those parties,
except in the case of clauses (i) and (ii) above, for breaches, violations and
defaults that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. 
The Company has full power and authority to authorize, issue and sell
the Offered Securities as contemplated by this Agreement and the Guarantors
have full power and authority to authorize and issue their respective
Guarantees as contemplated by this Agreement.

(l)  This Agreement has been duly
authorized, executed and delivered by the Company and the Company Guarantors;
and on the Closing Date the counterpart to this Agreement will be duly
authorized, executed and delivered by the ATI Guarantors.

 

 5
 

 

(m)  The Registration Rights
Agreement has been duly authorized by the Company and the Company Guarantors
and on the Closing Date will be duly authorized by the ATI Guarantors; on the
Closing Date, the Registration Rights Agreement will be duly executed and
delivered by the Company and the Guarantors and will be enforceable against the
Company and the Guarantors in accordance with its terms, except that (i) the
enforcement thereof may be limited by (A) bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and (B) general equity principles and
the discretion of the court before which any proceeding therefor may be
brought, whether at law or in equity and (ii) any rights to indemnity or
contribution thereunder may be limited by federal and state securities laws and
public policy considerations.

(n)  Except as disclosed in the
General Disclosure Package, the Company, TD Group and their subsidiaries have
good and marketable title to all material real properties and all other
material properties and material assets owned by them, in each case, and except
as disclosed in the General Disclosure Package, free from liens, encumbrances
and defects that would materially affect the value thereof or materially
interfere with the use made or to be made thereof by them; provided, however,
that the foregoing representations and warranties shall only be made with
respect to the ATI Guarantors on the Closing Date after giving effect to the
repayment of ATI’s existing indebtedness as further described in the General
Disclosure Package and except as disclosed in the General Disclosure Package,
the Company, TD Group and their subsidiaries hold any material leased real or
personal property under valid and enforceable leases with no exceptions that
would materially interfere with the use made or to be made thereof by them.

(o)  The Company, TD Group and
their subsidiaries possess adequate certificates, authorities or permits issued
by appropriate governmental agencies or bodies necessary to conduct the
business now operated by them and have not received any written notice of
proceedings relating to the revocation or modification of any such certificate,
authority or permit that, if determined adversely to the Company, TD Group or
any of their subsidiaries, would, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

(p)  No labor dispute with the
employees of the Company, TD Group or any subsidiary thereof exists or, to the
knowledge of the Company, is imminent that would, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

(q)  The Company, TD Group and
their subsidiaries own, possess (including by license or other agreement) or
can acquire on reasonable terms, adequate trademarks, trade names and other
rights to inventions, know-how, patents, copyrights, confidential information
and other intellectual property (collectively, “Intellectual Property Rights”) necessary to conduct the
business now operated by them, or presently employed by them, and have not
received any written notice of infringement of or conflict with asserted rights
of others with respect to any Intellectual Property Rights that, if determined
adversely to the Company, TD Group or any of their subsidiaries, would
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

(r)  Except as disclosed in the
General Disclosure Package, neither the Company, TD Group nor any of their
subsidiaries (i) is in violation of any statute, rule, regulation, decision or
order of any governmental agency or body or any court, domestic or foreign,
relating to the use, disposal or release of hazardous or toxic substances or
relating to the protection or restoration of the environment or human exposure
to hazardous or toxic substances (collectively, “Environmental Laws”), (ii) owns or operates any real property
contaminated with any substance that is subject to any Environmental Laws,
(iii) is liable for any off-site disposal or contamination pursuant to any
Environmental Laws, or (iv) is subject to any claim relating to any
Environmental Laws, which violation, contamination, liability or claim would,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect; and to the Company’s knowledge, there are no pending
investigations which could reasonably be expected to lead to such a claim.

 6
 

 

(s)  Except as disclosed in the
General Disclosure Package, there are no pending actions, suits or proceedings
against or affecting the Company, TD Group, any of their subsidiaries or any of
their respective properties that would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, or would materially
and adversely affect the ability of the Company or any of the Guarantors to
perform their respective obligations under the Operative Documents, or which
are otherwise material in the context of the sale of the Offered Securities; to
the Company’s knowledge, no such actions, suits or proceedings are threatened
against the Company, TD Group, any of their respective subsidiaries or any of
their respective properties.

(t)  The financial statements
included in the General Disclosure Package and the Final Offering Circular
present fairly in all material respects the financial position of (1) TD Group
(or, if applicable, TransDigm Holding Company) and its consolidated
subsidiaries and (2) ATI and its consolidated subsidiaries, in each case as of
the dates shown and their results of operations and cash flows for the periods
shown, and, except as otherwise disclosed in the General Disclosure Package and
the Final Offering Circular, such financial statements have been prepared in
conformity with generally accepted accounting principles in the United States (“GAAP”) applied on a consistent basis, and the assumptions used in preparing the pro
forma financial statements included in the General Disclosure Packageand the Final Offering Circular
provide a reasonable basis for presenting
the significant effects directly attributable to the transactions or events
described therein, the related pro forma adjustments give appropriate effect to
those assumptions, and the pro forma columns therein reflect the proper
application of those adjustments to the corresponding historical financial
statement amounts.

(u)  Except as disclosed in the General Disclosure
Package, since the date of the latest audited financial statements of TD Group
included in the General Disclosure Package there has been no material adverse
change, nor any development or event involving a prospective material adverse
change, in the condition (financial or other), business, properties or results
of operations of TD Group and its subsidiaries taken as a whole, and, except as
disclosed in or contemplated by the General Disclosure Package, there has been
no dividend or distribution of any kind declared, paid or made by TD Group on
any class of its capital stock.

(v)  TD Group is subject to the reporting
requirements of either Section 13 or Section 15(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”),
and files reports with the Commission on the Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system.

(w)  Neither the Company, TD Group nor any
Guarantor is, and after giving effect to the Transactions none of them will be,
an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under
Section 8 of the United States Investment Company Act of 1940, as amended
(the “Investment Company Act”);
and neither the Company, TD Group nor any Guarantor is, and after giving effect
to the Transactions, none of them will be, an “investment company” as defined
in the Investment Company Act.

(x)  TD Group maintains disclosure controls and
procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act)
that comply in all material respects with the requirements of the Exchange Act;
such disclosure controls and procedures have been designed to ensure that
material information relating to TD Group and its subsidiaries is made known to
TD Group’s principal executive officer and principal financial officer by
others within those entities.

(y)  No securities of the same class (within the
meaning of Rule 144A(d)(3) under the Securities Act) as the Offered
Securities are listed on any national securities exchange registered under
Section 6 of the Exchange Act or quoted in a U.S. automated inter-dealer
quotation system.

 

 7

 

(z)  The offer and sale of the Offered Securities
in the manner contemplated by this Agreement will be exempt from the
registration requirements of the Securities Act by reason of Section 4(2)
thereof, Regulation D thereunder and Regulation S thereunder; and it
is not necessary to qualify an indenture in respect of the Offered Securities
under the Trust Indenture Act.

(aa)  Except in connection with the consummation of
the transactions contemplated by this Agreement, neither the Company nor any of
its subsidiaries or affiliates, nor any person acting on its or their behalf
(i) has, within the six-month period prior to the date hereof, offered or
sold in the United States or to any U.S. person (as such terms are defined in
Regulation S under the Securities Act (“Regulation
S”)) the Offered Securities or any security of the same class or
series as the Offered Securities, except for the issuance and sale by the
Company of its registered 73⁄4% Senior Subordinated Notes in the exchange offer
that was consummated on December 11, 2006 pursuant to the terms of that certain
Registration Rights Agreement, dated as of June 23, 2006, by and among the
Company and the other parties named therein, or (ii) has offered or will
offer or sell the Offered Securities (A) in the United States by means of
any form of general solicitation or general advertising within the meaning of
Rule 502(c) under the Securities Act or (B) with respect to any such
securities sold in reliance on Rule 903 of Regulation S, by means of any directed
selling efforts within the meaning of Rule 902(c) of Regulation S. The Company,
its affiliates and any person acting on its or their behalf have complied in
all material respects and will comply in all material respects with the
offering restriction requirements of Regulation S with respect to the offering
and sale of the Offered Securities. The Company has not entered into and will
not enter into any contractual arrangement with respect to the distribution of
the Offered Securities, except for this Agreement.  Notwithstanding anything contained herein to
the contrary, neither the Company nor any Guarantor makes any representation or
warranty pursuant to this clause (aa) with respect to any actions taken by the
Purchasers in connection with the transactions contemplated by this Agreement.

3.  Purchase,
Sale and Delivery of Offered Securities.  On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth
herein, on the Closing Date, the Company agrees to sell to the several
Purchasers, and each such Purchaser agrees, severally and not jointly, to
purchase from the Company, at a purchase price of 98.25% of the gross proceeds
of the Offered Securities, plus accrued interest from January 15, 2007 to the
Closing Date, the principal amount of Offered Securities set forth opposite the
name of such Purchaser in Schedule A hereto, it being understood and
agreed that the obligation of the Company to sell to the several Purchasers the
principal amount of Offered Securities set forth herein is conditioned upon the
consummation of the Merger.

The Company will deliver against payment of the
purchase price the Offered Securities in the form of one or more permanent
global certificates in definitive form (the “Global
Securities”) deposited with the Trustee as custodian for The
Depository Trust Company (“DTC”) and
registered in the name of Cede & Co., as nominee for DTC. Interests in any
permanent Global Securities will be held only in book-entry form through DTC,
except in the limited circumstances described in the Final Offering
Circular.  Payment for the Offered
Securities shall be made by the Purchasers in Federal (same day) funds by wire
transfer to an account specified by the Company in writing to Credit Suisse,
with such payment being made on February 7, 2007, or at such other time not
later than seven full business days thereafter as Credit Suisse and the Company
determine, such time being herein referred to as the “Closing Date”,
against delivery to the Trustee as custodian for DTC of the Global Securities
representing all of the Offered Securities purchased pursuant to the terms
hereof. The Global Securities will be made available for checking at the office
of Cravath, Swaine & Moore LLP, New York, New York at least 24 hours prior
to the Closing Date.

4.  Representations
by Purchasers; Resale by Purchasers. 
(a)  Each Purchaser severally
represents and warrants to the Company that it is an “accredited investor”
within the meaning of Regulation D under the Securities Act.

 8
 

 

(b)  Each Purchaser severally acknowledges that
the Offered Securities have not been registered under the Securities Act and
may not be offered or sold within the United States or to, or for the account
or benefit of, U.S. persons except in accordance with Regulation S or pursuant
to an exemption from the registration requirements of the Securities Act. Each
Purchaser severally represents and agrees that it has offered and sold the
Offered Securities, and will offer and sell the Offered Securities (i) as part of
its distribution at any time and (ii) otherwise until 40 days after the later
of the commencement of the offering and the Closing Date, only in accordance
with Rule 903 or Rule 144A under the Securities Act (“Rule 144A”). Accordingly, neither such
Purchaser nor its affiliates, nor any persons acting on its or their behalf,
have engaged or will engage in any directed selling efforts with respect to the
Offered Securities, and such Purchaser, its affiliates and all persons acting
on its or their behalf have complied and will comply with the offering
restriction requirements of Regulation S. Each Purchaser severally agrees that,
at or prior to confirmation of sale of the Offered Securities, other than a
sale pursuant to Rule 144A, such Purchaser will have sent to each distributor,
dealer or person receiving a selling concession, fee or other remuneration that
purchases the Offered Securities from it during the restricted period a
confirmation or notice to substantially the following effect:

“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”),
and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons (i) as part of their distribution at any
time or (ii) otherwise until 40 days after the later of the date of the
commencement of the offering and the closing date, except in either case in
accordance with Regulation S (or Rule 144A if available) under the Securities
Act. Terms used above have the meanings given to them by Regulation S.”

Terms used in this subsection (b) have the meanings
given to them by Regulation S.

(c)  Each Purchaser severally
agrees that it and each of its affiliates has not entered into and will not
enter into any contractual arrangement with respect to the distribution of the
Offered Securities except for any such arrangements with the other Purchaser or
affiliates of the other Purchaser or with the prior written consent of the
Company.

(d)  Each Purchaser severally agrees
that it and each of its affiliates will not offer or sell the Offered
Securities in the United States by means of any form of general solicitation or
general advertising within the meaning of Rule 502(c) under the Securities Act,
including, but not limited to (i) any advertisement, article, notice or
other communication published in any newspaper, magazine or similar media or
broadcast over television or radio, or (ii) any seminar or meeting whose
attendees have been invited by any general solicitation or general advertising.
Each Purchaser severally agrees, with respect to resales made in reliance on
Rule 144A of any of the Offered Securities, to deliver either with the
confirmation of such resale or otherwise prior to settlement of such resale a
notice to the effect that the resale of such Offered Securities has been made
in reliance upon the exemption from the registration requirements of the
Securities Act provided by Rule 144A.

(e)  Each of the Purchasers
severally represents and agrees that (i) (A) it is a person whose ordinary
activities involve it in acquiring, holding, managing or disposing of
investments (as principal or agent) for the purposes of its business and (B) it
has not offered or sold and will not offer or sell the Offered Securities other
than to persons whose ordinary activities involve them in acquiring, holding,
managing or disposing of investments (as principal or agent) for the purposes
of their businesses or who it is reasonable to expect will acquire, hold,
manage or dispose of investments (as principal or agent) for the purposes of
their businesses where the issue of the Offered Securities would otherwise
constitute a contravention of Section 19 of the Financial Services and Markets
Act 2000 (the “FSMA”) by the
Company; (ii) it has only communicated or 

 

 9
 

caused to be
communicated and will only communicate or cause to be communicated any
invitation or inducement to engage in investment activity (within the meaning
of section 21 of the FSMA) received by it in connection with the issue or sale
of the Offered Securities in circumstances in which section 21(1) of the FSMA
does not apply to the Company;and (iii) it has complied and will comply
with all applicable provisions of the FSMA with respect to anything done by it
in relation to the Offered Securities in, from or otherwise involving the
United Kingdom.

5.  Certain
Agreements of the Company and the Guarantors.  The Company and, as applicable, the
Guarantors agree with the Purchasers that:

(a)  The Company will advise
Credit Suisse promptly of any proposal to amend or supplement the Preliminary
Offering Circular or the Final Offering Circular and will not effect such
amendment or supplementation without Credit Suisse’s consent, which consent
shall not be unreasonably withheld or delayed. If, at any time prior to the
completion of the resale of the Offered Securities by the Purchasers, there
occurs an event or development as a result of which the Preliminary Offering
Circular, the Final Offering Circular, any document included within the General
Disclosure Package or any Supplemental Marketing Material included or would
include an untrue statement of a material fact or omitted or would omit to
state any material fact necessary in order to make the statements therein, in
the light of the circumstances prevailing at such time, not misleading, or if
it is necessary at any such time to amend or supplement the Preliminary
Offering Circular, the Final Offering Circular, any document included within
the General Disclosure Package or any Supplemental Marketing Material, the
Company promptly will notify Credit Suisse of such event and promptly will
prepare, at its own expense, an amendment or supplement which will correct such
statement or omission. Neither Credit Suisse’s consent to, nor the Purchasers’
delivery to offerees or investors of, any such amendment or supplement shall
constitute a waiver of any of the conditions set forth in Section 7.  This subsection does not apply to statements
in or omissions from the Preliminary Offering Circular, the Final Offering
Circular, any document included within the General Disclosure Package or any
Supplemental Marketing Material made in reliance upon and in conformity with
written information furnished to the Company by any Purchaser through Credit Suisse
specifically for use therein, it being understood and agreed that the only such
information is that described as such in Section 8(b) hereof.

(b)  The Company will furnish to
Credit Suisse copies of the Preliminary Offering Circular, each other document
comprising a part of the General Disclosure Package, the Final Offering
Circular, all amendments and supplements to such documents and each item of
Supplemental Marketing Material, in each case as soon as available and in such
quantities as Credit Suisse may reasonably request, and the Company will
furnish to Credit Suisse on the date hereof three copies of each of the
foregoing documents, one of which in the case of the Preliminary Offering
Circular and the Final Offering Circular will include the independent
accountants’ reports manually signed by such independent accountants. At any
time when neither the Company nor  TD
Group is subject to Section 13 or 15(d) of the Exchange Act, the
Company will promptly furnish or cause to be furnished to Credit Suisse and,
upon request of holders and prospective purchasers of the Offered Securities,
to such holders and purchasers, copies of the information required to be
delivered to holders and prospective purchasers of the Offered Securities
pursuant to Rule 144A(d)(4) under the Securities Act (or any successor
provision thereto) in order to permit compliance with Rule 144A in
connection with resales by such holders of the Offered Securities.  The Company will pay the expenses of printing
and distributing to the Purchasers all such documents.

(c)  The Company will use its
commercially reasonable efforts to arrange for the qualification of the Offered
Securities for sale and the determination of their eligibility for investmentunder the laws of such
jurisdictions in the United States and Canada as Credit Suisse may reasonably
designate and will use its commercially reasonable efforts to continue such 

 

 10
 

 

qualifications
in effect so long as required for the resale of the Offered Securities by the
Purchasers, provided that the Company shall not be obligated to file any
general consent to service of process or to qualify as a foreign corporation or
as a dealer in securities in any jurisdiction in which it is not so qualified
as of the date hereof or to subject itself to taxation in respect of doing
business in any jurisdiction in which it is not otherwise subject as of the
date hereof.

(d)  During the period of two
years after the Closing Date, the Company will, upon request, furnish to Credit
Suisse and Lehman and any holder of Offered Securities a copy of the
restrictions on transfer applicable to the Offered Securities.

(e)  During the period of two
years after the Closing Date, TD Group, the Company and the other Guarantors
will not, and will not permit any of their subsidiaries to, resell any of the
Offered Securities that have been reacquired by any of them.

(f)  During the period of two
years after the Closing Date, neither the Company nor any of the Guarantors
will be or become, an open-end investment company, unit investment trust or
face-amount certificate company that is or is required to be registered under
Section 8 of the Investment Company Act.

(g)  The Company will pay all
expenses incidental to the performance of its obligations and the Guarantors’
obligations under the Operative Documents, including (i) the fees and expenses
of the Trustee and its professional advisors; (ii) all expenses incurred by it
in connection with the execution, issuance, authentication, packaging and
initial delivery of the Offered Securities and, as applicable, the Exchange
Securities (as defined in the Registration Rights Agreement), the preparation
and printing of this Agreement, the Registration Rights Agreement, the Offered
Securities, the Indenture, the Supplemental Indenture, the Preliminary Offering
Circular, any other documents comprising any part of the General Disclosure
Package, the Final Offering Circular, all amendments and supplements thereto,
each item of Supplemental Marketing Material and any other document relating to
the issuance, offer, sale and delivery of the Offered Securities and, as
applicable, the Exchange Securities; (iii) the cost of qualifying the Offered
Securities for trading in The PortalSM Market and any reasonable expenses incidental
thereto; (iv) the cost of any advertising approved by the Company in connection
with the issue of the Offered Securities; (v) any expenses (including fees and
disbursements of counsel) incurred by the Company in connection with the
qualification of the Offered Securities or the Exchange Securities for sale
under the laws of such states in the United States and Canada as Credit Suisse
may reasonably designate (subject to the other terms set forth in this
Agreement) and the printing of memoranda relating thereto; (vi) any fees charged
by investment rating agencies for the rating of the Offered Securities or the
Exchange Securities; and (vii) any expenses incurred in distributing to the
Purchasers the Preliminary Offering Circular, any other documents comprising
any part of the General Disclosure Package, the Final Offering Circular
(including any amendments and supplements thereto) and any Supplemental
Marketing Material. The Company will also pay or reimburse the Purchasers (to
the extent incurred by them) for all reasonable travel expenses of the
Purchasers and the Company’s officers and employees and any other reasonable
expenses of the Purchasers and the Company incurred in connection with
attending or hosting meetings with prospective purchasers of the Offered
Securities.

(h)  In connection with the
offering, until Credit Suisse shall have notified the Company of the completion
of the resale of the Offered Securities, none of TD Group, the Company or any
of their subsidiaries has or will, either alone or with one or more other persons,
bid for or purchase for any account in which TD Group, the Company or any of
their subsidiaries has a beneficial interest any Offered Securities ; and
neither TD Group, the Company nor any of their subsidiaries will make bids or
purchases for the purpose of creating actual, or apparent, active trading in,
or of raising the price of, the Offered Securities.

 

 11

 

(i)  The Company will use the net
proceeds from the sale of the Offered Securities in substantially the manner
described in the Preliminary Offering Circular and the Final Offering Circular
under the caption “Use of Proceeds”.

(j)  Until the consummation of
the issue and the purchase of the Offered Securities on the Closing Date
pursuant to Section 3 of this Agreement, the Company and the Guarantors will
promptly notify Credit Suisse on behalf of the Purchasers of any amendment,
supplementation or waiver of any of the Transaction Documents and, if
applicable, will promptly provide Credit Suisse on behalf of the Purchasers and
counsel for Credit Suisse photocopies of any such amendments, supplements or
waivers.

6.  Free
Writing Communications. 
(a)  The Company represents and
agrees that, unless it obtains the prior consent of Credit Suisse, and Credit
Suisse represents and agrees that, unless it obtains the prior consent of the
Company, it has not made and will not make any offer relating to the Offered Securities
that would constitute an Issuer Free Writing Communication, in each case, other
than the Supplement.

(b)  The Company consents to the
use by any Purchaser of a Free Writing Communication that (i) contains only
(A) information describing the preliminary terms of the Offered Securities
or their offering or (B) information that describes the final terms of the
Offered Securities or their offering and that is included in the Terms
Communication (which Terms Communication constitutes a Free Writing Communication)
or is included in or is subsequently included in the Final Offering Circular or
(ii) does not contain any material information about the Company or its
securities that was provided by or on behalf of the Company, it being
understood and agreed that any such Free Writing Communication referred to in
clause (i) or (ii) shall not be an Issuer Free Writing Communication for
purposes of this Agreement.

7.  Conditions
of the Obligations of the Purchasers.  The obligations of the several Purchasers to
purchase and pay for the Offered Securities will be subject to the accuracy of
the representations and warranties on the part of the Company and the
Guarantors herein, to the accuracy of the statements of officers of the Company
and the Guarantors made pursuant to the provisions hereof, to the performance,
in all material respects, by the Company and the Guarantors of their
obligations hereunder and to the following additional conditions precedent:

(a)  The Purchasers shall have
received a letter, dated the date of this Agreement, of Ernst & Young LLP,
substantially in the form attached hereto as Exhibit A, concerning the
financial information with respect to TD Group and its subsidiaries set forth
in the General Disclosure Package.

(b)  The Purchasers shall have
received a letter, dated the date of this Agreement, of KPMG LLP, substantially
in the form attached hereto as Exhibit B, concerning the financial information
with respect to ATI and its subsidiaries set forth in the General Disclosure
Package.

(c)  The Purchasers shall have
received a certificate, dated the date hereof, of the Chief Financial Officer
of ATI, substantially in the form attached hereto as Exhibit C.

(d)  Subsequent to the execution
and delivery of this Agreement, there shall not have occurred (i) any change,
or any development or event involving a prospective change, in the condition
(financial or other), business, properties or results of operations of the
Company, the Guarantors and their respective subsidiaries taken as one
enterprise which, in the judgment of Credit Suisse and Lehman, is material and
adverse and makes it impractical or inadvisable to proceed with completion of
the offering or the sale of and payment for the Offered Securities; (ii) any
downgrading in the rating of any debt securities of the Company by any “nationally
recognized statistical rating organization” (as defined for purposes of
Rule 436(g) under the 

 

 12
 

 

Securities
Act), or any public announcement that any such organization has under
surveillance or review its rating of any debt securities of the Company (other
than an announcement with positive implications of a possible upgrading, and no
implication of a possible downgrading, of such rating) or any announcement that
the Company has been placed on negative outlook; (iii) any change in U.S. or
international financial, political or economic conditions or currency exchange
rates or exchange controls as would, in the reasonable judgment of Credit
Suisse and Lehman, be likely to prejudice materially the success of the proposed
issue, sale or distribution of the Offered Securities, whether in the primary
market or in respect of dealings in the secondary market; (iv) any material
suspension or material limitation of trading in securities generally on the New
York Stock Exchange, or any setting of minimum prices for trading on such
exchange; (v) any suspension of trading of any securities of TD Group on any
exchange or in the over-the-counter market; (vi) any banking moratorium
declared by U.S. Federal or New York authorities; (vii) any major disruption of
settlements of securities or clearance services in the United States; (viii)
any attack on, outbreak or escalation of hostilities or act of terrorism
involving the United States or any declaration of war by Congress or any other
national or international calamity or emergency if, in the reasonable judgment
of Credit Suisse and Lehman, the effect of any such attack, outbreak,
escalation, act, declaration, calamity or emergency makes it impractical or
inadvisable to proceed with completion of the offering or sale of and payment
for the Offered Securities.

(e)  The Purchasers shall have
received an opinion, dated the Closing Date, of Willkie Farr & Gallagher
LLP, Baker & Hostetler LLP or other local counsel to the Company, as applicable,
substantially to the effect that:

(i)            Each of the Company
and TD Group has been duly incorporated and is an existing corporation in good
standing under the laws of the State of Delaware, with corporate power and
authority to own its properties and conduct its business as described in the
General Disclosure Package, except where the failure to have such power and
authority would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect; and each of the Company and TD Group is duly
qualified to do business as a foreign corporation in good standing in the
jurisdictions, if any, listed on a schedule to such opinion;

(ii)           Each subsidiary of
the Company listed on Schedule B hereto and each entity listed on Schedule
C hereto that will become a subsidiary of the Company following the
consummation of the Merger has been duly incorporated and is an existing
corporation in good standing under the laws of the jurisdiction of its
incorporation, with power and authority (corporate and other) to own its
properties and conduct its business as described in the General Disclosure
Package, except where the failure to have such power and authority would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect; and each subsidiary of the Company is duly qualified to do
business as a foreign corporation in good standing in the jurisdictions listed
on a schedule to such opinion; all of the issued and outstanding capital stock
of each such subsidiary of the Company has been duly authorized and validly
issued and is fully paid and nonassessable; and the capital stock of each such
subsidiary owned by the Company, directly or through subsidiaries, is, to the
knowledge of such counsel, owned free from liens, encumbrances and defects,
except for liens, encumbrances and defects on the capital stock of the
subsidiaries (direct and indirect) of the Company granted in favor of the
lenders under or related to the Amended Credit Agreement;

(iii)          The Indenture as
supplemented by the Supplemental Indenture has been duly authorized, executed
and delivered; the Offered Securities have been duly authorized, executed,
authenticated, issued and delivered, are consistent in all material respects
with the information in the General Disclosure Package and conform in all
material respects to the description thereof contained in the Final Offering
Circular; and 

 13
 

 

the Indenture
as supplemented by the Supplemental Indenture and the Offered Securities
constitute valid and legally binding obligations of the Company and the
Guarantors enforceable in accordance with their terms, except that the
enforcement thereof may be limited by (i) bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and (ii) general equity principles
and the discretion of the court before which any proceeding therefor may be
brought, whether at law or in equity;

(iv)          No consent,
approval, authorization or order of, or filing with, any governmental agency or
body or any court is required for the consummation by the Company or the
Guarantors of the transactions contemplated by this Agreement and the other
Operative Documents, including the issuance and sale of the Offered Securities
and the Exchange Securities by the Company and the issuance of the Guarantees
and the Exchange Security Guarantees by the Guarantors, in any such case except
(A) as have been obtained or will be obtained prior to the Closing Date, (B) as
may be required under state securities or “Blue Sky” laws in connection with
the purchase and distribution of the Offered Securities by the Purchasers, (C)
for the order of the Commission declaring effective the Exchange Offer
Registration Statement or, if required, the Shelf Registration Statement or (D)
where the failure to obtain or make any of the foregoing would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect;

(v)           To our knowledge,
except as set forth in the General Disclosure Package, there are no pending
actions, suits or proceedings against the Company, TD Group, any of their
subsidiaries or any of their respective properties in any New York or Federal
court that, would individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect, or which are otherwise material in the context
of the sale of the Offered Securities;

(vi)          The execution,
delivery and performance of the Operative Documents, the consummation of the
transactions therein contemplated and the issuance and sale of the Offered
Securities will not result in a breach or violation of any of the terms and
provisions of, or constitute a default under (1) any Federal or New York
statute or any rule, regulation or order, in each case known to such counsel to
be customarily applicable to transactions of the type contemplated by this
Agreement or, to such counsel’s knowledge, any order, judgment or decree
specifically naming the Company or any of its subsidiaries of any governmental
agency or body or any court having jurisdiction over the Company or any such
subsidiary or any of their properties, (2) any agreement or instrument to which
the Company, TD Group or any such subsidiary is a party or by which the
Company, TD Group or any such subsidiary is bound or to which any of the
properties of the Company, TD Group or any such subsidiary is subject and which
is listed on Schedule F hereto, or (3) the charter or by-laws of the
Company, TD Group or any such subsidiary, except in the case of clauses (1) and
(2), for breaches, violations and defaults that would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect, and
the Company has full power and authority to enter into this Agreement and to
consummate the transactions contemplated hereby;

(vii)         Such counsel have no
reason to believe that the Final Offering Circular, or any amendment or
supplement thereto, as of the date hereof and as of the Closing Date, contained
any untrue statement of a material fact or omitted to state any material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; such
counsel have no reason to believe that the documents specified in a schedule to
such counsel’s letter, consisting of those included in the General Disclosure
Package, as of the Applicable Time and as of 

 14
 

 

the Closing
Date, when considered together with the information set forth in the schedules
to this Agreement, contained any untrue statement of a material fact or omitted
to state any material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading; it being understood that such counsel need express no
opinion as to the financial statements, related schedules and other financial
and accounting information contained in the General Disclosure Package or the
Final Offering Circular;

(viii)        This Agreement and the counterparts to
this Agreement to be executed by the ATI Guarantors upon consummation of the
Merger have been duly authorized, executed and delivered by the Company and the
Guarantors;

(ix)           The Registration Rights Agreement and
the counterparts to the Registration Rights Agreement to be executed by the ATI
Guarantors upon consummation of the Merger have been duly authorized, executed
and delivered by the Company and the Guarantors and will be enforceable against
the Company and the Guarantors in accordance with its terms, except that (i)
the enforcement thereof may be limited by (A) bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and (B) general
equity principles and the discretion of the court before which any proceeding
therefor may be brought, whether at law or in equity and (ii) any rights to
indemnity or contribution thereunder may be limited by federal and state
securities laws and public policy considerations; and

(x)            It is not necessary
in connection with (1) the offer, sale and delivery of the Offered Securities
by the Company to the Purchasers pursuant to this Agreement or (2) the
resales of the Offered Securities by the Purchasers in the manner contemplated
by this Agreement, to register the Offered Securities under the Securities Act
or to qualify an indenture in respect thereof under the Trust Indenture Act.

(f)  The Purchasers shall have
received from Cravath, Swaine & Moore LLP, counsel for the Purchasers, such
opinion or opinions, dated the Closing Date, with respect to the incorporation
of the Company, the validity of the Offered Securities, the Final Offering
Circular and the General Disclosure Package, the exemption from registration
for the offer and sale of the Offered Securities by the Company to the
Purchasers and the resales by the Purchasers as contemplated hereby and other
related matters as Credit Suisse and Lehman may reasonably require, and the
Company shall have furnished to such counsel such documents as they reasonably
request for the purpose of enabling them to pass upon such matters.

(g)  The Purchasers shall have
received a certificate, dated the Closing Date, of the Chief Executive Officer,
the President or any Vice President and a principal financial or accounting
officer of the Company in which such officers, to the best of their knowledge
after reasonable investigation, shall state that the representations and
warranties of the Company in this Agreement are true and correct, that the
Company has complied in all material respects with all agreements and satisfied
all conditions on its part to be performed or satisfied hereunder at or prior
to the Closing Date, and that, subsequent to the  date of the most recent financial statements
of TD Group included in the General Disclosure Package there has been no
material adverse change, nor any development or event involving a prospective
material adverse change, in the condition (financial or other), business,
properties or results of operations of TD Group and its subsidiaries taken as a
whole except as set forth in the General Disclosure Package or as described in
such certificate.

(h)  The Purchasers shall have
received letters, dated the Closing Date, of Ernst & Young LLP and KPMG LLP
which meet the requirements of subsections (a) and (b), respectively, of this 

 15
 

 

Section,
except that the procedures required to be performed in respect thereof shall be
performed through a date that is not more than three days prior to the Closing
Date for the purposes of this subsection.

(i)  On the Closing Date, the
Transactions, including the Merger, shall have been consummated in a manner
consistent in all material respects with the description thereof in the
Preliminary Offering Circular and the Final Offering Circular.

(j)  The Amended Credit
Agreement, which contains terms similar in all material respects to those
described in the Preliminary Offering Circular and the Final Offering Circular,
shall have become effective in accordance with its terms and there shall exist
at and as of the Closing Date (after giving effect to the transactions
contemplated by this Agreement and the application of the proceeds received by
the Company from the sale of the Offered Securities) no condition that would
constitute an event of default under the terms of the agreements governing the
Amended Credit Agreement and the Company shall have received the borrowings
under the Incremental Term Loan in the manner described in the General
Disclosure Package.

The Company will furnish the Purchasers with such
conformed copies of such opinions, certificates, letters and documents as the
Purchasers reasonably request. Credit Suisse may in its sole discretion waive
on behalf of the Purchasers compliance with any conditions to the obligations
of the Purchasers hereunder.

8.  Indemnification
and Contribution.  (a)  The Company and the Guarantors will, jointly
and severally, indemnify and hold harmless each Purchaser, its officers,
partners, members, directors and its affiliates and each person, if any, who
controls such Purchaser within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act against any losses, claims, damages or
liabilities, joint or several, to which such Purchaser may become subject,
under the Securities Act or the Exchange Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement of
any material fact contained in the Preliminary Offering Circular or the Final
Offering Circular, in each case as amended or supplemented, or any Issuer Free
Writing Communication or Supplemental Marketing Material, or arise out of or
are based upon the omission or alleged omission to state therein a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading and will reimburse
each Purchaser for any legal or other expenses reasonably incurred by such
Purchaser in connection with investigating or defending against any such loss,
claim, damage, liability or action, as such expenses are incurred; provided,
however, that neither the Company nor the Guarantors will be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or alleged untrue statement in or omission
or alleged omission from any of such documents in reliance upon and in
conformity with written information furnished to the Company by any Purchaser
through Credit Suisse specifically for use therein, it being understood and
agreed that the only such information consists of the information described as
such in subsection (b) below.

(b) 
Each Purchaser will severally and not jointly indemnify and hold
harmless the Company and the Guarantors, their directors and officers and each
person, if any, who controls the Company or the Guarantors within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act, against
any losses, claims, damages or liabilities to which the Company or the
Guarantors, as the case may be, may become subject under the Securities Act or
the Exchange Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
the Preliminary Offering Circular or the Final Offering Circular, in each case
as amended or supplemented, or any Issuer Free Writing Communication or
Supplemental Marketing Material or arise out of or are based upon the omission
or the alleged omission to state therein a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged
omission 

 16
 

 

was made in reliance upon and in conformity with written information furnished
to the Company by such Purchaser through Credit Suisse specifically for use
therein, and will reimburse any legal or other expenses reasonably incurred by
the Company or the Guarantors in connection with investigating or defending
against any such loss, claim, damage, liability or  action, as such expenses are incurred, it
being understood and agreed that the only such information furnished by any
Purchaser consists of the following information in the Preliminary Offering
Circular and the Final Offering Circular furnished on behalf of each Purchaser:
under the caption “Plan of Distribution” paragraphs 4, 10 and 11; provided,
however, that the Purchasers shall not be liable for any losses, claims,
damages or liabilities arising out of or based upon the Company’s or the
Guarantors’ failure to perform their obligations under Section 5(a) of this
Agreement.

(c) 
Promptly after receipt by an indemnified party under this Section of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party of the commencement
thereof, but the failure to notify the
indemnifying party shall not relieve it from any liability that it may have
under subsection (a) or (b) above except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided further that the failure to notify the
indemnifying party shall not relieve it from any liability that it may have to
an indemnified party otherwise than under subsection (a) or (b) above.  In case any such action is brought against
any indemnified party and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Section for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement or compromise of, or
consent to the entry of judgment with respect to, any pending or threatened
action in respect of which any indemnified party is or could have been a party
and indemnity could have been sought hereunder by such indemnified party unless
such settlement (i) includes an unconditional release of such indemnified party
from all liability on any claims that are the subject matter of such action and
(ii) does not include a statement as to or an admission of fault, culpability
or failure to act by or on behalf of any indemnified party.  No indemnifying party shall be liable for any
settlement or compromise of, or consent to the entry of judgment with respect
to, any such action or claim effected without its consent, unless such
indemnifying party has failed, upon request by the indemnified party pursuant
to this Section 8, to reimburse the indemnified party for legal expenses due
pursuant to this Section 8 within thirty days of such request.

(d)  If
the indemnification provided for in this Section is unavailable or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above, then
each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of the losses, claims, damages or liabilities
referred to in subsection (a) or (b) above (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company and the
Guarantors on the one hand and the Purchasers on the other from the offering of
the Offered Securities or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law, in such proportion as is appropriate
to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Company and the Guarantors on the one hand and
the Purchasers on the other in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities as well as any
other relevant equitable considerations. The relative benefits received by the
Company and the Guarantors on the one hand and the Purchasers on the other
shall be deemed to be in the same proportion as the total net proceeds from the
offering (before deducting expenses) received by the Company compared to the
total discounts and commissions received by the Purchasers from the Company
under this Agreement. The relative fault 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 

 17
 

 

the Company or the Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this
subsection (d). Notwithstanding the provisions of this subsection (d), no
Purchaser shall be required to contribute any amount in excess of the amount by
which the total price at which the Offered Securities purchased by it were
resold exceeds the amount of any damages which such Purchaser has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. The Purchasers’ obligations in this subsection
(d) to contribute are several in proportion to their respective purchase
obligations and not joint.  The Company
and the Purchasers agree that it would not be just and equitable if
contribution pursuant to this Section 8(d) were determined by pro rata
allocation (even if the Purchasers were treated as one entity for such purpose)
or by any other method of allocation which does not take account of the
equitable considerations referred to in this Section 8(d).

(e) 
The obligations of the Company and the Guarantors under this Section
shall be in addition to any liability which the Company or the Guarantors may
otherwise have and shall extend, upon the same terms and conditions, to each
person, if any, who controls any Purchaser within the meaning of the Securities
Act or the Exchange Act; and the obligations of the Purchasers under this
Section shall be in addition to any liability which the respective Purchasers
may otherwise have and shall extend, upon the same terms and conditions, to
each person, if any, who controls the Company or the Guarantors within the
meaning of the Securities Act or the Exchange Act.

9.  Default of
Purchasers.  If any Purchaser
or Purchasers default in their obligations to purchase Offered Securities
hereunder and the aggregate principal amount of Offered Securities that such
defaulting Purchaser or Purchasers agreed but failed to purchase does not
exceed 10% of the total principal amount of Offered Securities, Credit Suisse
and Lehman may make arrangements satisfactory to the Company for the purchase
of such Offered Securities by other persons, including any of the Purchasers,
but if no such arrangements are made by the Closing Date, the non-defaulting
Purchasers shall be obligated severally, in proportion to their respective
commitments hereunder, to purchase the Offered Securities that such defaulting
Purchasers agreed but failed to purchase. 
If any Purchaser or Purchasers so default and the aggregate principal
amount of Offered Securities with respect to which such default or defaults
occur exceeds 10% of the total principal amount of Offered Securities and
arrangements satisfactory to Credit Suisse and Lehman and the Company for the
purchase of such Offered Securities by other persons are not made within
36 hours after such default, this Agreement will terminate without
liability on the part of any non-defaulting Purchaser or the Company, except as
provided in Section 10. As used in this Agreement, the term “Purchaser”
includes any person substituted for a Purchaser under this Section. Nothing
herein will relieve a defaulting Purchaser from liability for its default.

10.  Survival
of Certain Representations and Obligations.  The respective indemnities, agreements,
representations, warranties and other statements of the Company or its officers
and of the Purchasers set forth in or made pursuant to this Agreement will
remain in full force and effect, regardless of any investigation, or statement
as to the results thereof, made by or on behalf of any Purchaser, the Company
or any of their respective representatives, officers or directors or any
controlling person, and will survive delivery of and payment for the Offered
Securities. If this Agreement is terminated pursuant to Section 9 or if
for any reason the purchase of the Offered Securities by the Purchasers is not
consummated, the Company shall remain responsible for the expenses to be paid
or reimbursed by it pursuant to Section 5 and the respective obligations
of the Company and the Purchasers pursuant to Section 8 shall remain in
effect.  If the purchase of the Offered
Securities by the Purchasers is not consummated for any reason other than
solely because of the termination of this Agreement pursuant to Section 9
or the occurrence of any event specified in clause (iii), (iv), (vi), (vii) or
(viii) of Section 7(d), the Company will reimburse the Purchasers for all
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
reasonably incurred by them in connection with the offering of the Offered
Securities.

 

 18
 

 

11.  Notices.  All communications hereunder will be in
writing and, if sent to the Purchasers will be mailed, delivered or telegraphed
and confirmed to the Purchasers, c/o Credit Suisse Securities (USA) LLC, Eleven
Madison Avenue, New York, N.Y. 10010-3629, Attention: LCD-IBD, or, if sent
to the Company, will be mailed, delivered or telegraphed and confirmed to it at
1301 East 9th Street, Suite 3710, Cleveland, OH 44114,
Attention: Chief Financial Officer; provided, however, that any notice to a
Purchaser pursuant to Section 8 will be mailed, delivered or telegraphed
and confirmed to such Purchaser.

12.  Successors.  This Agreement will inure to the benefit of
and be binding upon the parties hereto and their respective successors and the
persons referred to in Section 8, and no other person will have any right
or obligation hereunder, except that holders of Offered Securities shall be
entitled to enforce the agreements for their benefit contained in the second
and third sentences of Section 5(b) hereof against the Company as if such
holders were parties thereto.

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

14.  Absence of
Fiduciary Relationship.  The
Company and the Guarantors acknowledge and agree that:

(a)  the Purchasers have been
retained solely to act as initial purchasers in connection with the initial
purchase, offering and resale of the Offered Securities and that no fiduciary,
advisory or agency relationship between the Company, the Guarantors and the
Purchasers has been created in respect of any of the transactions contemplated
by this Agreement, the Preliminary Offering Circular or the Final Offering
Circular, irrespective of whether any Purchaser has advised or is advising the
Company or the Guarantors on other matters;

(b)  the purchase price of the
Offered Securities set forth in this Agreement was established by the Company
following discussions and arms-length negotiations with the Purchasers and the
Company is capable of evaluating and understanding and understands and accepts
the terms, risks and conditions of the transactions contemplated by this
Agreement;

(c)  the Company and the
Guarantors have been advised that the Purchasers and their affiliates are
engaged in a broad range of transactions which may involve interests that differ
from those of the Company and the Guarantors, and that the Purchasers have no
obligation to disclose such interests and transactions to Company or the
Guarantors by virtue of any fiduciary, advisory or agency relationship; and

(d)  the Company and the Guarantors
waive, to the fullest extent permitted by law, any claims they may have against
the Purchasers for breach of fiduciary duty or alleged breach of fiduciary duty
and agree that the Purchasers shall have no liability (whether direct or
indirect) to the Company or the Guarantors in respect of such a fiduciary duty
claim or to any person asserting a fiduciary duty claim on behalf of or in
right of the Company or the Guarantors, including stockholders, employees or
creditors of the Company or the Guarantors.

15.  Applicable
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New
York without regard to principles of conflicts of laws.

The Company and the Guarantors hereby submit to the
non-exclusive jurisdiction of the Federal and state courts in the Borough of
Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby.  The Company and the Guarantors irrevocably
and unconditionally waive any objection to the laying of venue of any suit or
proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby in Federal and state 

 19
 

 

courts in the Borough of
Manhattan in The City of New York and irrevocably and unconditionally waive and
agree not to plead or claim in any such court that any such suit or proceeding
in any such court has been brought in an inconvenient forum.

 

 20

 

If the foregoing is in accordance with the Purchasers’
understanding of our agreement, kindly sign and return to us one of the
counterparts hereof, whereupon it will become a binding agreement between the
Company, the Guarantors and the Purchasers in accordance with its terms.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  TransDigm Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TransDigm Group Incorporated

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief Financial Officer
  and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Avionic Instruments Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Skurka Aerospace Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DAC Realty Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant Secretary

  

 

 

	
  

  	
  Champion Aerospace Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MarathonNorco Aerospace Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ZMP, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Adams Rite Aerospace, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Christie Electric Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Treasurer and Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Sweeney Engineering Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Secretary and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CDA InterCorp.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
   

  	
   

  	
  Title:

  	
  Secretary and Treasurer

  

 

 

The foregoing Purchase
Agreement

is hereby confirmed and accepted

as of the date first above written.

CREDIT
SUISSE SECURITIES (USA) LLC

	
  By  /s/
  Edward M. Yorke

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Edward M. Yorke

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
						

 

LEHMAN
BROTHERS INC.

	
  By  /s/ William J. Hughes

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William J. Hughes

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
						

 

Acting on
behalf of themselves

and as the Representatives of 

the several Purchasers

 

SCHEDULE A

	
  Purchaser

  	
   

  	
   

  	
   

  	
  Principal Amount of

  Offered Securities

  	
   

  
	
  Credit Suisse
  Securities (USA) LLC

  	
   

  	
  $

  	
  180,000,000

  	
   

  
	
  Lehman Brothers Inc.

  	
   

  	
  $

  	
  120,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  300,000,000

  	
   

  

 

SCHEDULE B

LIST OF
COMPANY GUARANTORS

	
  Name of Subsidiary

  	
   

  	
   

  	
   

  	
  State or Jurisdiction of Incorporation

  	
   

  	
   

  
	
  MarathonNorco
  Aerospace, Inc.

  	
   

  	
  Delaware

  
	
  ZMP, Inc.

  	
   

  	
  California

  
	
  Adams Rite
  Aerospace, Inc.

  	
   

  	
  California

  
	
  Champion
  Aerospace Inc.

  	
   

  	
  Delaware

  
	
  Christie
  Electric Corp.

  	
   

  	
  California

  
	
  Avionic
  Instruments, Inc.

  	
   

  	
  Delaware

  
	
  Skurka Aerospace
  Inc.

  	
   

  	
  Delaware

  
	
  DAC Realty Corp.

  	
   

  	
  New Jersey

  
	
  Sweeney
  Engineering Corp.

  	
   

  	
  California

  
	
  CDA InterCorp.

  	
   

  	
  Florida

  

 

SCHEDULE C

LIST OF ATI GUARANTORS

	
  Name of Subsidiary

  	
   

  	
   

  	
   

  	
  State or Jurisdiction of Incorporation

  	
   

  	
   

  
	
  Avtech
  Corporation

  	
   

  	
  Washington

  
	
  Transicoil
  Corporation

  	
   

  	
  Delaware

  
	
  West Coast
  Specialties, Inc.

  	
   

  	
  Washington

  
	
  Malaysia Aerospace
  Services, Inc.

  	
   

  	
  Delaware

  

 

SCHEDULE D

Issuer Free Writing
Communications

Terms Communication attached as Schedule E hereto.

SCHEDULE E

High Yield Capital Markets

 

	
  Issuer:

  	
   

  	
  TransDigm Inc.

  
	
   

  	
   

  	
   

  
	
  Security
  Description:

  	
   

  	
  Senior Subordinated Notes

  
	
  Face:

  	
   

  	
  $300,000,000

  
	
  Gross
  Proceeds:

  	
   

  	
  $303,000,000

  
	
   

  	
   

  	
   

  
	
  Coupon:

  	
   

  	
  7.750%

  
	
  Maturity:

  	
   

  	
  7/15/2014

  
	
   

  	
   

  	
   

  
	
  Offering
  Price:

  	
   

  	
  $101.000 settles plus accrued interest from 1/15/07
  interest payment date

  
	
  Yield
  to Maturity:

  	
   

  	
  7.571%

  
	
  Spread
  to Treasury:

  	
   

  	
  272

  
	
  Benchmark:

  	
   

  	
  4.250% UST due 8/2015

  
	
   

  	
   

  	
   

  
	
  Yield to
  Worst:

  	
   

  	
  7.521% (based on a YTW
  Call date of 7/15/2012)

  
	
  Spread
  to Treasury:

  	
   

  	
  268

  
	
  Benchmark:

  	
   

  	
  4.750% UST due 1/2012

  
	
   

  	
   

  	
   

  
	
  Ratings:

  	
   

  	
  B3 / B-

  
	
   

  	
   

  	
   

  
	
  Interest
  Payment Dates:

  	
   

  	
  January 15 and July 15

  
	
  Commencing:

  	
   

  	
  7/15/2007

  
	
   

  	
   

  	
   

  
	
  Optional
  Redemption:

  	
   

  	
  Callable, on or after the following dates, and at
  the following prices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  	
   

  	
  Price

  	
   

  	
   

  
	
   

  	
   

  	
  7/15/2009

  	
   

  	
  105.813%

  	
   

  	
   

  
	
   

  	
   

  	
  7/15/2010

  	
   

  	
  103.875%

  	
   

  	
   

  
	
   

  	
   

  	
  7/15/2011

  	
   

  	
  101.938%

  	
   

  	
   

  
	
   

  	
   

  	
  7/15/2012

  	
   

  	
  100.000%

  	
   

  	
   

  
	
   

  	
   

  	
  and thereafter

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Equity Clawback: 

  	
   

  	
  Redeem until 7/15/2009 at 107.750% for up to 35.0%

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  1/31/2007

  
	
  Settlement Date:

  	
   

  	
  2/7/2007 (T+5)

  
	
   

  	
   

  	
   

  
	
  Cusip Numbers:

  	
   

  	
  144 A:

  	
   

  	
  893647AK3

  
	
   

  	
   

  	
  RegS:

  	
   

  	
  U8936PAE3

  
	
   

  	
   

  	
  ISIN:

  	
   

  	
  USU8936PAE35

  
	
   

  	
   

  	
   

  
	
  Min. Allocation:

  	
   

  	
  $1,000

  
	
  Increments:

  	
   

  	
  $1,000

  
	
   

  	
   

  	
   

  
	
  Gross Spread:

  	
   

  	
  1.75%

  
	
   

  	
   

  	
   

  
	
  Book-Runners:

  	
   

  	
  Credit Suisse Securities (USA) LLC

  	
   

  	
  60.00%

  
	
   

  	
   

  	
  Lehman Brothers Inc.

  	
   

  	
  40.00%

  
	
   

  	
   

  	
   

  
	
  Other:

  	
   

  	
  The principal amount of the term loan has been
  decreased by $50 million to $130 million and the notes in this offering
  have been increased by $50 million to $300 million. Total debt at
  closing does not change. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date of Updated Information: January 31, 2007

  
	
   

  
											

 

This communication is for informational purposes only
and does not constitute an offer to sell, or a solicitation of an offer to buy
any security. No offer to buy securities described herein can be accepted, and
no part of the purchase price thereof can be received, unless the person making
such investment decision has received and reviewed the information contained in
the relevant prospectus or offering circular in making their investment
decisions.   This communication is not
intended to be a confirmation as required under Rule 10b-10 of the
Securities Exchange Act of 1934.  A
formal confirmation will be delivered to you separately.  This notice shall not constitute an offer to
sell or a solicitation of an offer to buy, nor shall there be any sale of the
notes in any state or jurisdiction in which such offer, solicitation or sale
would be unlawful. The notes will be offered and sold to qualified institutional
buyers in the United States in reliance on Rule 144A under the Securities
Act of 1933, as amended (the “Act”), and to persons in offshore transactions in
reliance on Regulation S under the Act. The notes have not been registered
under the Securities Act or any state securities laws, and may not be offered
or sold in the United States or to U.S. persons absent registration or an
applicable exemption from the registration requirements.

 

SCHEDULE F

LIST OF CERTAIN
AGREEMENTS

1.                                       Stockholders’
Agreement, dated as of July 22, 2003, by and among TD Holding Corporation,
Warburg Pincus Private Equity VIII, L.P., the other institutional investors
whose names and addresses are set forth on Schedule I thereto and the employees
of TransDigm Inc. and certain of its subsidiaries whose names and addresses are
set forth on Schedule II thereto.

2.                                       Registration
Rights Agreement, dated as of July 22, 2003, among the institutional investors
whose names and addresses are set forth on Schedule I thereto, the employees of
TransDigm Inc. and certain of its subsidiaries whose names and addresses are
set forth on Schedule II thereto and TD Holding Corporation.

3.                                       Tax
Sharing Agreement, dated as of July 22, 2003, by and among TD Holding
Corporation, TransDigm Holding Company, TransDigm Inc. and such direct and
indirect subsidiaries of TD Holding Corporation that are listed on Exhibit A
thereto.

4.                                       Standard
Industrial/Commercial Single-Tenant Lease — Net, dated as of December 31, 2004,
between VHEM, LLC, d/b/a H&M Properties, and Skurka Aerospace Inc.

5.                                       Guaranty
of Lease, dated as of December 31, 2004, by TransDigm Inc. in favor of VHEM,
LLC, d/b/a H&M Properties.

6.                                       Indenture,
dated as of June 23, 2006, among TransDigm Inc., TransDigm Group Incorporated,
the subsidiary guarantors from time to time party thereto and The Bank of New
York Trust Company, N.A., as trustee, as supplemented by the First Supplemental
Indenture thereto, dated as of November 2, 2006.

7.                                       Credit
Agreement, dated June 23, 2006, among TransDigm Inc., TransDigm Group
Incorporated, the subsidiaries of TransDigm Inc. from time to time party
thereto, the financial institutions from time to time party thereto, as
lenders, Credit Suisse, as administrative agent and collateral agent, Credit
Suisse Securities (USA) LLC and Bank of America Securities LLC, as joint lead
arrangers and joint bookrunners, Bank of America, N.A., as syndication agent,
and Barclays Bank plc, General Electrical Capital Corporation and UBS
Securities LLC, as co-documentation agents.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]