Document:

EXHIBIT 10.15

 

TAX SHARING AGREEMENT

 

THIS AGREEMENT (this “Agreement”) made and entered into as of
July 22, 2003, by and among TD Holding Corporation, a Delaware corporation (“TD Holding”), TransDigm Holding Company, a
Delaware  corporation and direct
wholly-owned subsidiary of TD Holding (“TDHC”),
TransDigm Inc., a Delaware  corporation
and direct wholly-owned subsidiary of TDHC (“TransDigm”),
and such direct and indirect subsidiaries of TD Holding that are listed on Exhibit
A hereto from time to time (collectively with TDHC and TransDigm, the “Subsidiaries” and each individually, a “Subsidiary”).

 

WITNESSETH:

 

WHEREAS, TD Holding and each of the
Subsidiaries qualifies as an “includible corporation” within the meaning of
Section 1504(b) of the Code (as defined below);

 

WHEREAS, the TransDigm Group (as defined
below) qualifies as an “affiliated group” within the meaning of Section 1504(a)
of the Code;

 

WHEREAS, TD Holding is the common parent
corporation of the TransDigm Group; and

 

WHEREAS, the TransDigm Group desires to take
advantage of the tax savings that may result from the filing of U.S. federal
income tax returns on a consolidated basis, in accordance with Sections 1501 et seq. of the Code and the Treasury
Regulations promulgated thereunder.

 

NOW, THEREFORE, in consideration of the
covenants, agreements, terms and conditions contained herein, and for other
good, valid and binding consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

 

SECTION
1.  Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings.

 

“Code” shall mean the
Internal Revenue Code of 1986, as amended.

 

“Fiscal Year” shall mean
the annual accounting period of TD Holding and any other Member.

 

“Interim Payments” shall
have the meaning set forth in Section 3(b) of this Agreement.

 

“Member” shall mean a
member (as defined in Treasury Regulations Section 1.1502-1(b)), of the
TransDigm Group.

 

“Separate Return Liability”
shall mean, with respect to any Subsidiary for any Fiscal Year, the U.S.
federal income taxes (including any minimum tax or alternative minimum tax)
that would be payable by such Subsidiary to the U.S. Treasury had the 

 

 

1

 

Subsidiary filed a separate income tax return
for that Fiscal Year based on the Subsidiary’s Separate Taxable Income for that
Fiscal Year.

 

“Separate Taxable Income”
shall mean, with respect to any Subsidiary for any Fiscal Year, the income,
gains, losses, deductions and credits of such Subsidiary for that Fiscal Year
calculated as follows:  (i) any
dividends received by one Member from another Member will be assumed to qualify
for the 100% dividends received deduction of Section 243 of the Code or shall
otherwise be eliminated from such calculation; (ii) gain or loss on
intercompany transactions, whether or not deferred, shall be treated by each
Member in the manner required by Treasury Regulations Section 1.1502-13; (iii) limitations
on the calculation of a deduction or the utilization of tax credits or the
calculation of a tax liability shall be made on a consolidated basis;
(iv) net operating losses and credits of a Subsidiary shall be treated as
available to such Subsidiary in determining such Subsidiary’s Separate Taxable
Income, and shall not be reduced even if such net operating losses or credits
are used in determining the consolidated taxable income of the TransDigm Group,
instead, such net operating losses and credits shall be reduced only if, when
and to the extent used in determining the Separate Taxable Income of the
Subsidiary; and (v) elections relating to tax credits and tax computations
that differ from the consolidated treatment if separate returns were filed shall
be made on an annual basis by TD Holding.

 

“Subsidiary” and “Subsidiaries”
shall have the meanings set forth in the heading of this Agreement.

 

“Tax Payment Amount”
shall mean, with respect to any Subsidiary for any Fiscal Year, an amount equal
to the lesser of:

 

                                                (i) the
Subsidiary’s Separate Return Liability for that Fiscal Year; or

 

                                                (ii) the
product of (a) TransDigm Group’s actual consolidated U.S. federal tax
liability for such Fiscal Year and (b) a fraction, the numerator of which
is such Subsidiary’s Separate Return Liability for that Fiscal Year and the
denominator of which is the sum of each Subsidiaries’ Separate Return Liability
for that Fiscal Year.

 

“TDHC” shall have the
meaning set forth in the heading of this Agreement.

 

“TD Holding” shall have
the meaning set forth in the heading of this Agreement.

 

“TransDigm” shall have the meaning set forth in the heading of this
Agreement.

 

“TransDigm  Group”
shall mean the affiliated group of corporations consisting of TD Holding, as
the common parent, and each of the Subsidiaries.

 

SECTION
2.  Consent to Filing of
Consolidated Return.

 

(a)           TD
Holding shall file a consolidated U.S. federal income tax return, and pay to
the U.S. Treasury any taxes due thereon, on behalf of the TransDigm Group for
the taxable year 

 

 

2

 

ending September 30, 2003, and for each subsequent taxable period for
which this Agreement is in effect and for which the TransDigm Group is required
or permitted to file a consolidated tax return; provided, that TD
Holding shall not be liable for any taxes attributable to a Subsidiary if such
Subsidiary has not complied with its tax payment requirements as set forth in
Section 3 hereof.  Each Subsidiary shall
execute and file such consents, elections and other documents that may be
required or appropriate for the proper filing of such returns.

 

(b)           Each
corporation that, subsequent to the date of this Agreement, becomes a Member
shall be added to the list of Subsidiaries contained in Exhibit A hereto.  TransDigm (or the applicable Member that is
the direct parent corporation of such Subsidiary) shall cause each of the
Subsidiaries listed on Exhibit A hereto, as amended from time to time,
to become a party hereto by executing this Agreement in counterpart.

 

SECTION
3.  Tax Payments.

 

(a)           Each
Subsidiary shall make payments to TD Holding with respect to each Fiscal Year
equal to its respective Tax Payment Amount for such Fiscal Year.  Such payments shall be made in the manner
set forth in paragraphs (b) and (c) below.

 

(b)           From time to time during the Fiscal
Year each Subsidiary shall make interim payments (“Interim
Payments”) to TD Holding with respect to its Tax Payment
Amount (i) pursuant to the schedule set forth in Section 6655(c) of the
Code and (ii) calculated under the principles Section 6655(d) of the
Code.  Interim Payments shall be made no
later than 5 calendar days prior to the due date of the relevant estimated tax
payment.

 

(c)           If
a Subsidiary’s Tax Payment Amount for a particular Fiscal Year is greater than
its aggregate Interim Payments with respect to such Fiscal Year, then such
Subsidiary shall pay to TD Holding the excess of its Tax Payment Amount over
its aggregate Interim Payments at least five calendar days before TD Holding files
the TransDigm Group’s consolidated U.S. federal income tax return in respect of
such Fiscal Year.  If a Subsidiary’s
aggregate Interim Payments for a particular Fiscal Year exceed its Tax Payment
Amount with respect to such Fiscal Year, such excess shall be allowed as a
credit to the Subsidiary in respect of the Interim Payment next due from that
Subsidiary to TD Holding.

 

SECTION
4.  Adjustments to the Tax
Payment Amount.

 

(a)           If
for any Fiscal Year the Internal Revenue Service makes an upward adjust to, or
TD Holding files an amended return resulting in an upward adjustment of, the
TransDigm Group’s consolidated U.S. federal income tax liability with respect
to such Fiscal Year, then each Subsidiary shall pay to TD Holding an amount
equal to the excess of the Tax Payment Amount for such Fiscal Year, as
adjusted, over the Tax Payment Amount for such Fiscal Year paid to date.  In the event of a downward adjustment, the
excess of a Subsidiary’s Tax Payment Amount for such Fiscal Year paid to date
over its Tax Payment Amount, as adjusted, shall be allowed as a credit to the
Subsidiary in respect of the Interim Payment next due from that Subsidiary to
TD Holding under Section 3 of this Agreement.

 

(b)           The
payments required under this Section 4 shall be made promptly after a
“determination” (as defined in Section 1313(a) of the Code) in respect of the
amount at issue; 

 

 

3

 

 

provided, however, that payments in the case of the
filing of an amended return shall be made promptly upon such filing.

 

SECTION
5.  Interest Payments.  Interest will be paid pursuant to this
Agreement only with respect to payments required to be made by a Subsidiary as
a result of any adjustment or redetermination of income by the Internal Revenue
Service or in the case of a filing of an amended return.  Such interest will be calculated at the
applicable overpayment or underpayment rate and shall otherwise be determined
in the same manner as would be determined by the Internal Revenue Service.

 

SECTION
6.  Appointment of TD Holding as
Agent.  Each Subsidiary hereby
appoints TD Holding its agent with full power to act on its behalf in all
matters concerning the consolidated U.S. federal income tax returns filed on
behalf of the TransDigm Group, including the preparation and filing of such
returns (including any amendments thereto), making or revoking all elections
with respect thereto, negotiating and settling any audit, examination or
administrative proceeding with respect to such tax returns, and commencing and
prosecuting any judicial proceeding related to such tax returns.

 

SECTION
7.  State Tax Returns.  The provisions of this Agreement shall
apply, as appropriately adjusted, to any Members filing combined, consolidated,
unitary or similar income or franchise returns for state tax purposes.

 

SECTION
8.  Miscellaneous.

 

(a)           This
Agreement and any provision hereof may be amended, waived, discharged or
terminated only by an instrument in writing signed by the party against whom
enforcement of the amendment, waiver, discharge or termination is sought.

 

(b)           This
Agreement shall constitute the entire agreement between the parties concerning
the subject matter hereof and shall supersede any prior agreements and
understandings between or among the parties with respect to the subject matter
hereof.

 

(c)           The
validity, interpretation and enforceability of this Agreement shall be governed
in all respects by the laws of the State of New York, without regard to
conflict of law principles.

 

(d)           Failure
of any party at any time to require the other party’s performance of any
obligation under this Agreement shall not affect the right to require
performance of that obligation.  Any
waiver by any party of any breach of any provision of this Agreement shall not
be construed as a waiver of any continuing or succeeding breach of such
provision, a waiver or modification of the provision itself, or a waiver of any
right under this Agreement.

 

(e)           Section
and other headings contained in this Agreement are for reference purposes only
and are in no way intended to describe, interpret, define or limit the scope,
extent or intent of this Agreement or of any provision hereof.

 

 

4

 

(f)            Every
provision of this Agreement is intended to be severable.  If any term or provision hereof is
determined to be illegal or invalid for any reason whatsoever, such illegality
or invalidity shall not affect the validity of the remainder of this Agreement.

 

(g)           This
Agreement may be executed in multiple counterparts, each of which shall be
deemed an original and all of which together shall constitute one
agreement.  The signatures of any party
to any such counterpart shall be deemed to be a signature to, and may be
appended to, any other counterpart.

 

(h)           This
Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of, and be enforceable by, the parties hereto and their respective
successors and permitted assigns, but neither this Agreement nor any of the
rights, interests or obligations herein shall be assigned by any party hereto
without the prior written consent of the other parties hereto.

 

(i)            Matters
of interpretation and calculations under this Agreement shall be made in good
faith by TD Holding.

 

(j)            Upon
request by TD Holding, each Subsidiary shall pay to TD Holding, no later than
the due date of the next Interim Payment due following such request, such
Subsidiary’s pro rata share of (i) amounts expended by TD Holding in
connection with the determination of the tax liability of the TransDigm Group
and the preparation of necessary tax return filings and (ii) amounts
expended by TD Holding in determining amounts due pursuant to this Agreement.

 

 

5

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date first set forth above.

 

 

	
  TD HOLDING CORPORATION

  	
   

  	
  TRANSDIGM HOLDING COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  
	
  Name: 

  	
  W. Nicholas Howley

  	
   

  	
  Name:

  	
  W. Nicholas Howley

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  President / Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRANSDIGM INC.

  	
   

  	
  MARATHON POWER TECHNOLOGIES COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  
	
  Name:

  	
  W. Nicholas Howley

  	
   

  	
  Name:

  	
  W. Nicholas Howley

  
	
  Title:

  	
  Chairman / Chief Executive Officer

  	
   

  	
  Title:

  	
  Chairman / Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ZMP, INC.

  	
   

  	
  CHAMPION AEROSPACE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley 

  
	
  Name:

  	
  W. Nicholas Howley

  	
   

  	
  Name:

  	
  W. Nicholas Howley

  
	
  Title:

  	
  Chairman / Chief Executive Officer

  	
   

  	
  Title:

  	
  Chairman / Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADAMS RITE AEROSPACE, INC.

  	
   

  	
  CHRISTIE ELECTRIC CORP.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ W. Nicholas Howley 

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  
	
  Name:

  	
  W. Nicholas Howley 

  	
   

  	
  Name:

  	
  W. Nicholas Howley

  
	
  Title:

  	
  Chairman / Chief Executive Officer

  	
   

  	
  Title:

  	
  Chairman / Chief Executive Officer

  

 

6

 

EXHIBIT A

 

Marathon
Power Technologies Company, a Delaware corporation

ZMP,
Inc., a California corporation

Adams
Rite Aerospace, Inc., a California corporation

Champion
Aerospace, Inc., a Delaware corporation

Christie
Electric Corp., a California corporation

 

 

7<Page>

INDEPENDENT AUDITORS' CONSENT

We consent to the use in this Post Effective Amendment No. 5 to Registration
Statement No. 333-36138 of Hartford Life Insurance Company Separate Account
Seven of our report dated February 19, 2003, relating to the financial
statements of Hartford Life Insurance Company, and of our report dated
February 21, 2003, relating to the financial statements of Hartford Life
Insurance Company Separate Account Seven, appearing in the Statement of
Additional Information, which is a part of such Registration Statement, and
to the reference to us under the heading "Independent Public Accountants" in
such Statement of Additional Information.

Deloitte & Touche LLP
Hartford, Connecticut
August 29, 2003

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