Document:

Exhibit 10.11

 

STOCK SUBSCRIPTION AGREEMENT

 

STOCK SUBSCRIPTION AGREEMENT dated as of November 16, 2005 (this “Agreement”)
between Bain Capital Integral Investors, LLC (the “Buyer”) and Accellent
Holdings Corp., a Delaware corporation (“Holdco”).

 

RECITALS:

 

WHEREAS, Accellent Acquisition Corp. (“AAC”), a Delaware
corporation and indirect wholly-owned subsidiary of Holdco, and Accellent Inc.,
a Maryland corporation (“Accellent”), entered into
an Agreement and Plan of Merger, dated October 7, 2005, as amended (the “Merger
Agreement”), pursuant to which Accellent Merger Sub Inc., a Maryland
corporation and wholly-owned subsidiary of AAC, will merge with and into
Accellent (the “Merger”) with Accellent continuing as the surviving
corporation.

 

WHEREAS, all of the issued and outstanding common stock, par value
$0.01 per share, of Holdco (the “Common Stock”) will be owned
immediately before the Closing by Accellent Holdings LLC, a Delaware limited
liability company (“Holdings LLC”).

 

WHEREAS, KKR Millennium Fund L.P. and KKR Partners III, L.P., each of
which is an affiliate of Kohlberg Kravis Roberts & Co. L.P.
(collectively, the “KKR Partnerships”), own 100% of the membership
interests of Holdings LLC.

 

WHEREAS, Holdco desires to issue, and Buyer desires to purchase, newly
issued shares of Common Stock, subject to the terms and conditions of this
Agreement.

 

WHEREAS, at or before the effective time of the Merger, Holdings LLC,
Holdco and Buyer will enter into a Stockholders Agreement (the “Stockholders
Agreement”) in the form attached hereto, setting forth certain agreements
with respect to Holdco.

 

NOW, THEREFORE, in consideration of the promises and of the mutual
covenants and agreements herein contained, the parties hereto agree as follows:

 

ARTICLE 1

 

PURCHASE AND SALE

 

Section 1.1  Purchase and Sale.  Upon the terms and subject to the conditions
of this Agreement, Holdco agrees to issue and sell to Buyer, and Buyer agrees
to purchase from Holdco, the number of shares of newly issued Common Stock
(collectively, the “Purchase Stock”) equal to one-third the number of
shares of newly issued Common Stock held by Holdings LLC immediately before the
Closing.  The purchase price for the
Purchase Stock is the same per share price paid by Holdings LLC for shares of
newly issued Common Stock immediately prior to the Closing and the aggregate
purchase price for all the Purchase Stock is

 

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one-third of the total amount of equity contributed to Holdco by
Holdings LLC immediately prior to the Closing (the “Aggregate Purchase Price”).  Holdco will notify Buyer in writing of the
actual amount of the Aggregate Purchase Price accompanied with supporting
documentation reasonably acceptable to Buyer. 
The Aggregate Purchase Price and the monies contributed to Holdings LLC
will be used to fund the Merger Consideration (as defined in the Merger
Agreement) under the Merger Agreement and pay related fees and expenses.

 

Section 1.2  Closing.  The closing (the “Closing”) of the
purchase and sale of the Purchase Stock hereunder shall take place at the
offices of Simpson Thacher & Bartlett LLP, 425 Lexington Avenue, New
York, New York, immediately prior to the consummation of the Merger.  At the Closing, payment will be made by Buyer
of the Aggregate Purchase Price by wire transfer of immediately available funds
to an account designated by Holdco not later than one business day prior to the
date of Closing (the “Closing Date”)

 

ARTICLE 2

 

REPRESENTATIONS
AND WARRANTIES OF HOLDCO

 

Holdco represents and warrants to Buyer as of the date hereof that:

 

Section 2.1  Corporate Existence and Power; Newly Formed
Corporation.  Holdco is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware.  Holdco was
incorporated solely for the purpose of effectuating the transactions
contemplated in the Merger Agreement (including the transactions contemplated
by this Agreement) and has not conducted any business or entered into any
agreements or commitments except with respect to the foregoing.

 

Section 2.2  Authorization.  (a)  The execution, delivery and
performance by Holdco of this Agreement and the Stockholders Agreement and the
consummation of the transactions contemplated hereby and thereby are within
Holdco’s corporate powers and have been duly authorized by all necessary action
on the part of the Holdco.  Each of this
Agreement and the Stockholders Agreement has been duly executed and delivered
by Holdco.  Assuming this Agreement and
the Stockholders Agreement valid and binding agreements of Buyer and that the
Stockholders Agreement is a valid and binding obligation of Holdings LLC, each
of this Agreement and the Stockholders Agreement constitute valid and binding
agreements of Holdco, enforceable against Holdco in accordance with their
terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting
enforcement or creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief, or
other equitable remedies and (iii) with respect to provisions relating to
indemnification and contribution, as limited by considerations of public
policy.

 

(b)           The
execution, delivery and performance by Holdings LLC of the Stockholders
Agreement and the consummation of the transactions contemplated hereby and
thereby are within Holdings LLC’s limited liabilty company powers and have been
duly authorized by all necessary action on the part of the Holdings LLC.  Assuming the Stockholders

 

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Agreement is a binding obligation of Holdco and Buyer, the Stockholders
Agreement constitutes a valid and binding agreement of Holdings LLC,
enforceable against Holdings LLC in accordance with its terms, except(i) 
as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement or creditors’
rights generally, (ii) as limited by laws relating to the availability of
specific performance, injunctive relief, or other equitable remedies and (iii) with
respect to provisions relating to indemnification and contribution, as limited
by considerations of public policy.

 

Section 2.3  Governmental Authorization.  The execution, delivery and performance by
Holdco of this Agreement and the Stockholders Agreement require no order,
license, consent, authorization or approval of, or exemption by, or action by
or in respect of, or notice to, or filing or registration with, any
governmental body, agency or official except such as have been obtained or will
be obtained prior to the Closing or except where the failure to obtain any such
order, license, consent, authorization, approval or exemption or give any such notice
or make any filing or registration would not reasonably be expected to
adversely affect the ability of Holdco to perform its obligations hereunder or
thereunder.

 

Section 2.4  Noncontravention.  The execution, delivery and performance by
Holdco of this Agreement and the Stockholders Agreement do not and will not (i) violate
the certificate of incorporation or bylaws of Holdco, (ii) violate any
law, rule, regulation, judgment, injunction, order or decree applicable to or
binding upon Holdco, (iii) require any consent or other action by any
person under, constitute a default under (with due notice or lapse of time or
both), or give rise to any right of termination, cancellation or acceleration
of any right or obligation of Holdco or to a loss of any benefit to which
Holdco is entitled under any provisions of any agreement or other instrument
binding upon Holdco or any of its assets or properties or (iv) result in
the creation or imposition of any material mortgage, lien, pledge, charge,
security interest or encumbrance (each, a “Lien”) on any property or
asset of Holdco.

 

Section 2.5  Capitalization.  The authorized capital stock of Holdco
consists of 1,000 shares of Common Stock and no shares of preferred stock.  Immediately prior to the Closing, (i) the
authorized capital stock of Holdco will consist of 1000 shares of Common Stock
and no shares of preferred stock and (ii) the outstanding capital stock of
Holdco will consist of 75 shares of Common Stock and no shares of preferred
stock.  Immediately prior to the Closing,
Holdings LLC will own all of the issued and outstanding shares of capital stock
of Holdco.  Immediately prior to the
Closing, the KKR Partnerships will own 100% of the membership interests of
Holdings LLC.   Immediately after the
Closing, but prior to the effective time of the Merger (the “Effective Time”),
the outstanding capital stock of Holdco will be 100 shares of Common Stock (75
shares of which will be held by Holdings LLC and 25 of which will be held by
Buyer) and no shares of preferred stock. 
Except as set forth in this Section 2.5 there are, and immediately
after the Closing but prior to the Merger there will be, no outstanding (i) shares
of capital stock or voting securities of Holdco, (ii) securities of Holdco
convertible into or exchangeable for shares of capital stock or voting
securities of Holdco, (iii) options or other rights to acquire from
Holdco, or other obligation of Holdco to issue, any capital stock, voting
securities or securities convertible into or exchangeable for capital stock or
voting securities of Holdco or (iv) obligation of Holdco to repurchase or
otherwise acquire or retire any shares of capital stock or any convertible
securities, rights or options of the type described in clause (i),

 

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(ii), or (iii).  After the
Effective Time, Accellent will be a wholly owned subsidiary of AAC and AAC will
be a wholly owned subsidiary of Holdco.

 

Section 2.6  Litigation.  There is no action, suit, investigation or
proceeding pending against, or to the knowledge of Holdco, threatened against
or affecting Holdco before any court or arbitrator or any governmental body,
agency or official which in any manner challenges or seeks to prevent, enjoin,
alter or materially delay the transactions contemplated by this Agreement or
the Stockholders Agreement or which would reasonably be expected to have a
material adverse effect on the ability of Holdco to perform its obligations
under this Agreement or the Stockholders Agreement or to consummate the Merger
or on the business, properties, financial condition or results of operations of
Accellent after the Merger.

 

Section 2.7  Valid Issuance of Securities.  The shares of Purchase Stock which are being
issued to Buyer hereunder have been duly and validly authorized and when
issued, sold and delivered in accordance with the terms hereof for the
consideration expressed herein, will be fully paid and nonassessable.

 

ARTICLE 3

 

REPRESENTATION
AND WARRANTIES OF BUYER

 

Buyer represents and warrants to Holdco as of the date hereof that:

 

Section 3.1  Existence and Power.  Buyer is a limited liability company duly
organized, validly existing and in good standing under the laws of its
jurisdiction of organization.

 

Section 3.2 Authorization.  (a)  The execution, delivery and
performance by Buyer of this Agreement and the Stockholders Agreement and the
consummation of the transactions contemplated hereby and thereby are within its
limited liability company power and have been duly authorized by all necessary
action on the part of Buyer.  Each of
this Agreement and the Stockholders Agreement has been duly executed and
delivered by Buyer.  Assuming this
Agreement and the Stockholders Agreement are valid and binding agreements of
Holdco and the Stockholders Agreement is a valid and binding obligation of
Holdings LLC, this Agreement and the Stockholders Agreement constitute valid
and binding agreements of Buyer, enforceable against Buyer in accordance with
their terms, except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting
enforcement or creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief, or
other equitable remedies and (iii) with respect to provisions relating to
indemnification and contribution, as limited by considerations of public
policy.

 

Section 3.3  Governmental Authorization.  The execution, delivery and performance by
Buyer of this Agreement and the Stockholders Agreement requires no order,
license, consent, authorization or approval of, or exemption by, or action by
or in respect of, or notice to, or filing or registration with, any
governmental body, agency or official except such as

 

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have been obtained or will be obtained prior to the Closing or except
where the failure to obtain any such order, license, consent, authorization,
approval or exemption or give any such notice or make any filing or registration
would not reasonably be expected to adversely affect the ability of Buyer to
perform its obligations hereunder.

 

Section 3.4  Noncontravention.  The execution, delivery and performance by
Buyer of this Agreement does not and will not violate the the certificate of
formation or limited liability company agreement of Buyer, (ii) violate
any law, rule, regulation, judgment, injunction, order or decree applicable to
or binding upon Buyer, (iii) require any consent or other action by any
person under, constitute a default under (with due notice or lapse of time or
both), or give rise to any right of termination, cancellation or acceleration
of any right or obligation of Buyer or to a loss of any benefit to which Buyer
is entitled under any provision of any agreement or other instrument binding
upon such Buyer or any of its assets or properties or (iv) result in the
creation or imposition of any material Lien on any property or asset of Buyer.

 

Section 3.5  Purchase for Investment.  Buyer is purchasing the Purchase Stock for
investment for its own account and not with a view to, or for sale in
connection with, any distribution thereof.

 

Section 3.6  Private Placement.  (a)  Buyer’s financial situation is such
that Buyer can afford to bear the economic risk of holding the Purchase Stock
for an indefinite period of time, and Buyer can afford to suffer the complete
loss of the investment in its Purchase Stock.

 

(b)  Buyer’s knowledge and experience in
financial and business matters are such that it is capable of evaluating the
merits and risks of the investment in the Purchase Stock, or Buyer has been
advised by a representative possessing such knowledge and experience.

 

(c)  Buyer understands that the Purchase
Stock acquired hereunder is a speculative investment which involves a high
degree of risk of loss of the entire investment therein, that there will
substantial restrictions on the transferability of the Purchase Stock as set
forth in the Stockholders’ Agreement and that for an indefinite period
following the date hereof there will be no public market for the Purchase Stock
and that, accordingly, it may not be possible for Buyer to sell the Purchase
Stock in case of emergency or otherwise.

 

(d)  Buyer and its representatives,
including, to the extent it deems appropriate, its professional, financial, tax
and other advisors, have reviewed all documents provided to them in connection
with the investment in the Purchase Stock, and Buyer understands and is aware
of the risks related to such investment.

 

(e)  Buyer and its representatives have
been given the opportunity to examine all documents and to ask questions of,
and to receive answers from, Holdco, Accellent and their respective
representatives concerning the terms and conditions of the acquisition of the Purchase
Stock and related matters and to obtain all additional information which Buyer
or its representatives deem necessary.

 

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(f)  Buyer is an “accredited investor”
as such term is defined in Regulation D under the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder.

 

Section 3.7  Litigation.  There is no action, suit, investigation or
proceeding pending against, or to the knowledge of Buyer threatened against or
affecting, Buyer before any court or arbitrator or any governmental body,
agency or official which in any manner challenges or seeks to prevent, enjoin,
alter or materially delay the transactions contemplated by this Agreement or
the Stockholders’ Agreement.

 

Section 3.8  Brokers or Finders’ Fees.  There is no investment banker, broker, finder
or other intermediary which has been retained by, will be retained by or is
authorized to act on behalf of Buyer who might be entitled to any fee or
commission from Accellent, AAC or Holdco upon consummation of the transactions
contemplated by this Agreement.

 

ARTICLE 4

 

CONDITIONS
TO CLOSING

 

Section 4.1  Conditions to Obligations of Buyer and
Holdco.  The obligations of Buyer and
Holdco to consummate the transactions contemplated hereby are subject to the
satisfaction of the following conditions:

 

(a)  Holdco shall have received from
Holdings LLC an equity contribution equal to the product of (i) the
Aggregate Purchase Price and (ii) three.

 

(b)  The conditions to the consummation
of the Merger set forth in Sections 7.1, 7.2 and 7.3 of the Merger Agreement,
other than those to be satisfied at the Effective Time of the Merger, shall
have been satisfied or waived and the Effective Time shall occur immediately
after the Closing.

 

Section 4.2  Conditions to Obligations of Buyer.  The obligation of Buyer to consummate the
transactions contemplated hereby is subject to the satisfaction of the
following further conditions:

 

(a)  (i)  Holdco shall have
performed in all material respects all of its obligations hereunder required to
be performed by it on or prior to the Closing Date and (ii) the
representations and warranties of Holdco contained in this Agreement shall be
true in all material respects when made and at and as of the Closing Date, as
if made at and as of such date.

 

(b)  Each of Holdco and Holdings LLC
shall have executed and delivered the Stockholders Agreement.

 

(c)  (i) No provision of the Merger
Agreement shall have been amended, modified or waived in any material respect,
it being agreed that, without limiting of the

 

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generality of
the foregoing, any amendment, modification or waiver of the Merger Agreement,
which would result in or cause an increase in the Merger Consideration or
result in or cause any additional consideration not contemplated by the Merger
Agreement to be paid to the securityholders of Accellent shall be deemed to be
material and (ii) the debt financing being consummated in connection with
the Merger shall be consummated immediately after the Closing on the terms set
forth in the debt commitment letters originally attached to the Merger
Agreement.

 

Section 4.3  Conditions to Obligation of Holdco.  The obligation of Holdco to consummate the
transactions contemplated hereby is subject to the satisfaction of the
following further conditions:

 

(a)  (i)  Buyer shall have
performed in all material respects all of its obligations hereunder required to
be performed by it at or prior to the Closing Date and (ii) the
representations and warranties of Buyer contained in this Agreement shall be
true in all material respects when made and at and as of the Closing Date, as
if made at and as of such date.

 

(b)  Buyer shall have executed and
delivered the Stockholders’ Agreement.

 

ARTICLE 5

 

COVENANTS
OF HOLDCO AND BUYER

 

Section 5.1  Stockholders Agreement.  Holdco, Buyer and Holdings LLC shall enter
into the Stockholders Agreement on or prior to the Closing Date.

 

Section 5.2 Further Assurances.  Holdco and Buyer agree that, from time to
time, whether on or after the Closing Date, each of them will execute and
deliver such further instruments of conveyance and transfer and take such other
actions as may be necessary to carry out the purposes and intents of this
Agreement.

 

ARTICLE 6

 

TERMINATION

 

Section 6.1  Grounds for Termination.  This Agreement may be terminated at any time
prior to the Closing:

 

(a)  by mutual written agreement of
Holdco and Buyer;

 

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(b)  by either Holdco or Buyer if the
Closing shall not have been consummated as of the close of business on January 20,
2006, unless such date is extended by the mutual agreement of Holdco and Buyer;

 

(c)  by either Holdco or Buyer upon the
termination of the Merger Agreement prior to the Closing; or

 

(d) by either Holdco or Buyer if
consummation of the transactions contemplated hereby would violate any
non-appealable final order, decree or judgment of any court or governmental
body having competent jurisdiction.

 

The party desiring to terminate this Agreement pursuant to clauses
6.1(b), (c) or (d) shall give notice of such termination to the other
party.

 

Section 6.2  Effect of Termination.  If this Agreement is terminated as permitted
by Section 6.1, such termination shall be without liability of any party
(or any stockholder, general partner, limited partner, member, director,
officer, employee, agent, consultant or representative of such party) to any of
the other parties to this Agreement and this Agreement shall become void and of
no further force or effect; provided that if such termination shall
result from the willful (i) failure of either party to fulfill a condition
to the performance of the obligations of the other party, (ii) failure to
perform a covenant of this Agreement or (iii) material breach by either
party hereto of any representation or warranty or agreement contained herein,
such party shall be liable for such breach prior to such termination.  Notwithstanding the foregoing, the provisions
of Sections 7.5, 7.6 and 7.7 shall survive any termination hereof pursuant to Section 6.1.

 

ARTICLE 7

 

MISCELLANEOUS

 

Section 7.1  Notices.  Any notice or other communications required
or permitted hereunder shall be deemed to be sufficient and received if
contained in a written instrument delivered in person or by courier or duly
sent by first class certified mail, postage prepaid, or by facsimile addressed
to such party at the address or facsimile number set forth below:

 

if to Holdco, to:

 

c/o Kohlberg Kravis Roberts & Co. L.P.

2800
Sand Hill Road, Suite 200

Menlo
Park, California 94025

Attn: 
Michael W. Michelson

 

with copies to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

 

8

 

New York, New York 10017

Attn:   Sean D. Rodgers, Esq.

 

if to Buyer, to:

 

c/o Bain Capital Partners LLC

111 Huntington Avenue

Boston, MA  02199

Attention:  Steve Barnes

 

with a copy to:

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

	
  Attention:

  	
  Matthew E. Steinmetz, P.C.

  
	
   

  	
  Jeffrey W. Richards

  

 

or, in any
case, at such other address or facsimile number as shall have been furnished in
writing by such party to the other parties hereto.  All such notices, requests, consents and
other communications shall be deemed to have been received (a) in the case
of personal or courier delivery, on the date of such delivery, (b) in the
case of mailing, on the fifth business day following the date of such mailing
and (c) in the case of facsimile, when received

 

Section 7.2  Legends.  
Buyer acknowledges that the certificate (or certificates) representing
the shares of Common Stock purchased by Buyer shall bear the following legends:

 

“THE SHARES
REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH TRANSFER, SALE,
ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES WITH THE
PROVISIONS OF THE STOCKHOLDER’S AGREEMENT DATED AS OF               ,
200   BETWEEN ACCELLENT HOLDINGS CORP. (THE “COMPANY”), ACCELLENT
HOLDINGS LLC AND THE STOCKHOLDER NAMED ON THE FACE HEREOF (A COPY OF WHICH IS
ON FILE WITH THE SECRETARY OF THE COMPANY” (the “Transfer Restriction Legend”)

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT OR IN ACCORDANCE WITH AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT OF 1933, AS AMENDED.” (the “Securities Act Legend”)

 

The Company
agrees that the Securities Act Legend shall promptly be removed by delivery of
substitute certificates without such legend, if the Company shall have received
an opinion of counsel in form and substance reasonably satisfactory to the
Company, or a copy of a “no-action” or interpretive letter from the SEC, to the
effect that the restrictions imposed by such legend are not applicable to such
shares.  The Company further agrees that
the Transfer

 

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Restriction
Legend shall promptly be removed by delivery of substitute certificates without
such legend upon any transfer to a Person who is not required to be bound by,
or become a party to, the Stockholders Agreement with respect to such shares,
pursuant to the terms of the Stockholders Agreement.

 

Section 7.3 Amendments and Waivers.  (a)  Any provision of this Agreement may
be amended or waived if, but only if, such amendment or waiver is in writing
and is signed, in the case of an amendment, by each party to this Agreement, or
in the case of a waiver, by the party against whom the waiver is to be
effective.

 

(b)  No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege.  The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

 

Section 7.4  Successors and Assigns.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, provided that no party may assign,
delegate or otherwise transfer any of its rights or obligations under this
Agreement without the consent of each other party hereto (it being agreed that
a merger (including the Merger) shall not be deemed an assignment requiring the
consent of Buyer); provided, further, that Buyer may assign its
rights hereunder to an affiliate, but such assignment shall not relieve any of
Buyer’s obligations hereunder.

 

Section 7.5  Governing Law.  This Agreement shall be governed by and
construed in accordance with the law of the State of New York.

 

Section 7.6  Jurisdiction.  The parties hereto agree that any suit,
action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions
contemplated hereby may only be brought in the United States District Court for
the Southern District of New York or any New York State court sitting in New
York City, and each of the parties hereby consents to the jurisdiction of such
courts (and of the appropriate appellate courts therefrom) in any such suit,
action or proceeding and irrevocably waives, to the fullest extent permitted by
law, any objection which it may now or hereafter have to the laying of the
venue of any such suit, action or proceeding in any such court or that any such
suit, action or proceeding which is brought in any such court has been brought
in an inconvenient forum.  Process in any
such suit, action or proceeding may be served on any party anywhere in the
world, whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party
agrees that service of process on such party as provided in Section 7.1
shall be deemed effective service of process on such party.

 

Section 7.7  Waiver Of Jury Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

10

 

Section 7.8  Counterparts; Third Party Beneficiaries.  This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.  This Agreement shall become effective when
each party hereto shall have received a counterpart hereof signed by the other
party hereto.  No provision of this
Agreement shall confer upon any person other than the parties hereto any rights
or remedies hereunder.

 

Section 7.9  Entire Agreement.  This Agreement, together with the
Stockholders’ Agreement, constitutes the entire agreement between the parties
with respect to the subject mater of this Agreement and supersedes all prior
agreements and understandings, both oral and written, between the parties with
respect to the subject matter of this Agreement.

 

Section 7.10  Captions.  The captions herein are included for
convenience of reference only and shall be ignored in the construction or
interpretation hereof.

 

Section 7.11  Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, such provision shall be
deemed to be excluded from this Agreement and the balance of this Agreement
shall be interpreted as if such provision were so excluded and shall be
enforced in accordance with its terms to the maximum extent permitted by law.

 

Section 7.12  Interpretation.  The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

 

 

[Remainder of page intentionally left
blank]

 

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

 

 

	
   

  	
  ACCELLENT HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Michael W. Michelson

  	
   

  
	
   

  	
   

  	
  Name: Michael W. Michelson

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BAIN CAPITAL INTEGRAL INVESTORS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By Bain Capital Investors, LLC

  
	
   

  	
  Its administrative member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ John Connaughton

  	
   

  
	
   

  	
   

  	
  Name: John Connaughton

  
	
   

  	
   

  	
  Title: Managing Director

  
					

 

12Exhibit 10.12

 

STOCKHOLDERS’
AGREEMENT

 

This
Stockholders’ Agreement (this “Agreement”), is entered into as of November 22,
2005 by and among Accellent Holding Corp., a Delaware corporation (the “Company”),
Bain Capital Integral Investors, LLC (“Bain”), BCIP TCV, LLC (“BCIP”) and
Accellent Holding LLC, a Delaware limited liability company (the “KKR Investor”).

 

RECITALS

 

WHEREAS,
Accellent Acquisition Corp., a Delaware corporation (“AAC”), and Accellent
Inc., a Delaware corporation, have entered into that certain Agreement and Plan
of Merger dated as of October 7, 2005 (the “Merger Agreement”), pursuant
to which a wholly owned subsidiary of AAC will merge (the “Merger”) with and
into Accellent Inc. with Accellent Inc. continuing as the surviving corporation
after the merger;

 

WHEREAS,
pursuant to the terms of the Merger Agreement, AAC will acquire 100% of the
outstanding shares of common stock, par value $.01 per share, of Accellent Inc.
(the “Common Stock”);

 

WHEREAS, at
the effective time of the Merger, the Company will own 100% of AAC, AAC will
own 100% of Accellent Inc., and  (i) the
KKR Investor and (ii) Bain and BCIP (taken together) will collectively own
75%  and 25%, respectively, of the
aggregate outstanding shares of Common Stock of the Company held by Bain, BCIP
and the KKR Investor; and

 

WHEREAS, Bain,
BCIP, the KKR Investor and the Company wish to enter into this Agreement
providing for certain rights and obligations of Bain, BCIP the KKR Investor and
the Company.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants herein contained and for
other good and valuable consideration, the parties hereto agree as follows:

 

1.                                       Definitions

 

As used in
this Agreement, the following capitalized terms shall have the following
meanings:

 

Affiliate:  When used with respect to a specified Person,
another Person that, either directly or indirectly, through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the Person specified.

 

Bain:  Bain Capital Integral Investors, LLC;
provided, that at such time as Bain and its Affiliates own no shares of Common
Stock, for all purposes of this Agreement other than Section 5(a), “Bain”
shall mean the Bain Holder holding the greatest percentage of Bain Shares, so
long as such Bain Holder holds at least 10% of the shares of Common Stock held
by Bain at the effective time of the Merger (as appropriately adjusted for
stock splits, reverse stock splits,

 

 

recapitalization and similar
transactions).  Under no circumstances
will any person other than Bain Capital Integral Investors LLC have any rights
under Section 5(a).

 

Bain Holder:
Bain, BCIP and any Person to whom Bain or BCIP transfers shares of Common Stock
and any transferee thereof, in either case who is required by this Agreement to
be bound by the provisions of this Agreement.

 

Bain Shares:  As of any date of determination, the shares
of Common Stock then held by the Bain Holders.

 

Board:  The Board of Directors of the Company.

 

Exempt
Transaction: 
Has the meaning set forth in Section 2(c) hereof.

 

KKR Affiliate:  With respect to the KKR Investor shall mean a
Person that directly or indirectly through one or more intermediaries controls,
is controlled by or is under common control with the KKR Investor.

 

KKR Holder:  The KKR Investor and any Person to whom the
KKR Investor transfers shares of Common Stock and any transferee thereof, in
either case who is required by this Agreement to be bound by the provisions of
this Agreement.

 

KKR Shares:  As of any date of determination, the shares
of Common Stock then held by the KKR Holders.

 

Person:  An individual, partnership, limited liability
company, joint venture, corporation, trust or unincorporated organization, a
government or any department, agency or political subdivision thereof or other
entity.

 

Private Sale:  Any sale of securities other than a sale made
in a public distribution pursuant to an effective registration statement under
the Securities Act.

 

Public
Offering:  Any
sale of the issued and outstanding shares of Common Stock made in a public
distribution pursuant to an effective registration statement under the
Securities Act (other than a registration statement on Form S-4 or Form S-8
or any similar or successor forms).

 

Securities Act:  The Securities Act of 1933, as amended from
time to time and the rules and regulations promulgated thereunder.

 

2.             (a)  ”Tag-Along”
Right With Respect to Private Sales by KKR Holders.  (i)  Private Sales of Shares by KKR
Holders.  Subject to the last
sentence of Section 3(a), with respect to any proposed Private Sale of any
KKR Shares by a KKR Holder or KKR Holders (collectively, for purposes of this Section 2,
the “KKR Holder”) during the term of this Agreement to a Person (a “Proposed
Purchaser”), other than pursuant to an Exempt Transaction (as defined in Section 2(c)),
Bain and the other Bain Holders (collectively, for purposes of this Section 2,
“Bain”) shall have the right and option, but not the obligation, to participate
in such

 

2

 

sale, on the same terms and
subject to the same conditions as the sale by the KKR Holder, for the number of
Bain Shares owned by Bain equaling the number derived by multiplying the total
number of KKR Shares which the KKR Holder proposes to sell (the “Proposed
Number of Shares”) by a fraction, the numerator of which is the total number of
Bain Shares held by Bain and the denominator of which is the sum of (A) the
total number of Bain Shares, (B) the total number of KKR Shares, and (C) the
total number of shares of Common Stock (determined on a fully diluted basis)
owned by Persons entitled to the benefits of any other “tag-along” rights
arising as a result of such sale (“Other Tag Shares”).  Any transfer by the stockholders of a KKR
Holder of any interests in such KKR Holder shall for purposes of this Section 2
be deemed to be a transfer of a proportionate number of the KKR Shares held by
such KKR Holder.

 

(ii)           Notices.  The KKR Holder shall notify, or cause to be
notified, Bain in writing of each proposed Private Sale subject to Section 2(a)(i) above.  Such notice shall set forth:  (A) the Proposed Number of Shares, (B) the
name and address of the Proposed Purchaser, (C) the proposed amount of
consideration, the material terms and conditions of such sale (and if the
proposed consideration is not cash, the notice shall describe the terms of the
proposed consideration) and the proposed closing date of such sale, (D) the
total number of KKR Shares and the total number of shares of Common Stock
(determined on a fully diluted basis) owned by Persons entitled to the benefits
of any other “tag-along” rights arising as a result of such sale and (E) that
the Proposed Purchaser has been informed of the “tag-along” right provided for
in this Section 2(a) and has agreed to purchase Bain Shares held by
Bain in accordance with the terms hereof. 
The “tag-along” right may be exercised by Bain by delivery of a written
notice from Bain to the KKR Holder (the “Tag-Along Notice”) within 15 days
following receipt of the notice specified in the preceding sentence.  The Tag-Along Notice shall state the amount
of Bain Shares that Bain proposes to include in such sale to the Proposed
Purchaser.  If Bain delivers a Tag-Along
Notice to the KKR Holder, Bain shall (A) prior to closing of any such
sale, execute and deliver (or cause to be executed and delivered) any purchase
agreement or other documentation required by the Proposed Purchaser to
consummate the sale (including without limitation all legal opinions,
cross-receipts and certificates), which purchase agreement and other
documentation shall be on terms substantially identical to those executed by
the KKR Holder (it being understood that Bain shall only be required to
participate severally on a pro rata basis (based on the number of shares of
Common Stock to be sold) in any indemnification or other obligations that the
KKR Holder agrees to provide in connection with such sale (other than any such
obligations that relate solely to a particular stockholder, such as
indemnification with respect to representations and warranties given by a
stockholder regarding such stockholder’s title to and ownership of Common Stock
and authority to enter into such agreement, in which case only such stockholder
shall be liable), and (B) at the closing of any such sale, deliver to the
Proposed Purchaser the certificate or certificates representing the Bain Shares
to be sold pursuant to such sale by Bain, duly endorsed for transfer with
signatures guaranteed, against receipt of the purchase price thereof.

 

(iii)          Number of Shares to be Sold.  If a Tag-Along Notice is received pursuant to
Section 2(a)(ii), Bain shall be permitted to sell to the Proposed
Purchaser up to the number of Bain Shares determined as set forth in Section 2(a)(i) above
(the “Proposed Bain Shares”), and the KKR Holder shall be permitted to sell to
the Proposed Purchaser up to a number of shares of

 

3

 

Common Stock (the “Proposed KKR Shares”)
equal to the Proposed Number of Shares multiplied by a fraction, the numerator
of which is the total number of KKR Shares held by the KKR Holder, and the
denominator of which is the sum of the total number of Bain Shares, KKR Shares,
and Other Tag Shares; provided that the KKR Holder and Bain shall each
have the right to sell a number of additional shares of Common Stock up to the
excess of the Proposed Number of Shares over the sum of the number of Proposed
KKR Shares and Proposed Bain Shares and the number of Other Tag Shares being
sold in such transaction pursuant to other tag-along rights arising as a result
of such sale, if the Proposed Purchaser wants to purchase such additional
shares.  If both the KKR Holder and Bain
desire to sell such additional shares to the Proposed Purchaser, the number of
such additional shares of Common Stock to be sold by each of Bain and the KKR
Holder shall be determined on a pro rata basis based on the total number of
shares owned by the KKR Holder and its Affiliates on the one hand and Bain and
its Affiliates on the other hand.  If no
Tag-Along Notice is received by the KKR Holder pursuant to Section 2(a)(ii),
the KKR Holder shall have the right to sell to the Proposed Purchaser up to the
Proposed Number of Shares on terms and conditions no more favorable in any
material respect to the KKR Holder than those stated in the Tag-Along Notice
within 90 days after the expiration of the notice period.  Any securities not transferred during such 90-day
period shall again be subject to the tag-along rights pursuant to the terms of
this paragraph.

 

(b)           Piggyback Registration Rights
With Respect to Public Sales by KKR Holders.  (i)  Public
Offering of Shares by KKR Holders. 
With respect to any proposed Public Offering of any KKR Shares by a KKR
Holder during the term of this Agreement, Bain shall have the right and option,
but not the obligation (and subject to the cutback provisions in Section 2(b)(iii) below),
to participate in such public distribution on the same terms and subject to the
same conditions as the sale by the KKR Holder for up to a maximum number of
Bain Shares equal to the product of (x) the total number of Bain Shares and (y)
a fraction, the numerator of which is the number of KKR Shares requested to be
registered in the Public Offering and the denominator of which is the total
number of KKR Shares.

 

(ii)           Notices.  The KKR Holder shall notify, or cause to be
notified, Bain in writing (a “Notice”) of each proposed Public Offering (a “Proposed
Registration”).  Such notice may be given
before the filing of such registration statement and need not specify any price
or other terms or conditions of such sale. 
If within 10 days of the delivery of such Notice to Bain, the KKR Holder
receives from Bain a written request (a “Request”) to register shares of Common
Stock held by Bain (which Request will be irrevocable), shares of Common Stock
will be so registered as and to the extent provided in this Section 2(b) if
KKR Shares are so registered.  If Bain
delivers a Request to the KKR Holder, Bain will participate in such public
distribution, if any, at the same price and on the same terms and conditions as
the KKR Holder, which price and other terms and conditions will be determined
on behalf of the KKR Holder and Bain by the KKR Holder in its sole discretion
(after reasonable consultation with Bain if at such time Bain is entitled to
information rights pursuant to either sentence of Section 5(b)).  Nothing in this Agreement shall create any
obligation on the part of the KKR Holder to cause a registration statement to
become effective under the Securities Act or to sell any shares of Common Stock
pursuant to an effective registration statement under the Securities Act.

 

4

 

(iii)          Number of Shares to be Sold.  If a registration pursuant to this Section 2(b) involves
an underwritten offering and the managing underwriter advises the Company in
writing that, in its opinion, the number of shares of Common Stock requested to
be included in such registration exceeds the number of shares of Common Stock
which can be sold in such offering, so as to be likely to have an adverse
effect on the price, timing or distribution of the shares of Common Stock
offered in such offering as contemplated by the Company or that the inclusion
of additional selling stockholders is likely to have such an adverse effect,
then the Company will include in such registration (A) the number of
shares of Common Stock held by Bain equal to the number derived by multiplying
the total number of shares which, in the opinion of such managing underwriter,
can be sold without having the adverse effect referred to above (the “Piggyback
Aggregate Registration Number”) by a fraction, the numerator of which is the
total number of Bain Shares held by Bain and the denominator of which is the
sum of (i) the total number of Bain Shares, (ii) the total number of
KKR Shares, and (iii) the total number of shares of Common Stock
(determined on a fully diluted basis) held by Persons entitled to the benefits
of any other piggyback registration rights arising as a result of such
registration (“Other Piggyback Shares”) and (B) the number of shares of
Common Stock held by the KKR Holder equal to the Piggyback Aggregate
Registration Number multiplied by a fraction, the numerator of which is the total
number of KKR Shares and the denominator of which is the sum of (i) the
total number of Bain Shares, (ii) the total number of KKR Shares, and (iii) the
total number of Other Piggyback Shares; provided that if the Piggyback
Aggregate Registration Number is in excess of the number of KKR Shares and Bain
Shares determined under clauses (A) and (B) above together with the
number of Other Piggyback Shares to be included in such registration pursuant
to other piggyback registration rights arising as a result of such
registration, then the Company shall also include in such registration a number
of additional KKR Shares and Bain Shares equal to such excess, which shall be
allocated between Bain and the KKR Holder on a pro rata basis based on the
total number of shares owned by the KKR Holder and its Affiliates on the one
hand and Bain and its Affiliates on the other hand; and provided further
that in the event the aggregate number of shares of Common Stock to be sold in
any such public distribution is increased or decreased, then the number of Bain
Shares which Bain shall sell in such public distribution shall be increased or
decreased by the product of (i) the number of shares of Common Stock by
which the total number of shares of Common Stock in such public distribution is
increased or decreased and (ii) a fraction the numerator of which equals
the number of Bain Shares held by Bain originally so registered and the
denominator of which is the total number of shares of Common Stock originally
so registered.

 

(iv)          Intentionally Omitted.

 

(v)           Holdback Agreement.  (A) In connection with the initial
Public Offering, Bain agrees not to effect any public sale or distribution,
including any sale pursuant to Rule 144 (or any successor provision) under
the Securities Act, of any shares of Common Stock (other than dispositions made
pursuant to the piggyback registration rights described in this Section 2(b)),
180 days (or such lesser period as the managing underwriters may permit) after
the effective date of such registration, and (B) in connection with each
subsequent Public Offering, Bain agrees not to effect any public sale or
distribution, including any sale pursuant to Rule 144 (or any successor
provision) under the Securities Act, of any shares of Common Stock (other

 

5

 

than dispositions made pursuant to the
piggyback registration rights described in this Section 2(b), within 30
days before and a number of days after to be determined by the managing
underwriter and the KKR Investor; provided  however, that
notwithstanding the restrictions set forth in clauses (A) and (B) above,
in no event will Bain be subject to restrictions on sale in connection with any
Public Offering that are more restrictive than those applicable to the KKR
Investor for each such Public Offering.

 

(vi)          Additional Agreements.  Bain agrees that it will execute and deliver
or cause to be executed and delivered such other agreements and other documents
(such as legal opinions, cross-receipts and certificates) as the KKR Holder
itself is delivering or as the KKR Holder may otherwise reasonably request to
implement the provisions of this Section 2(b); provided that such
additional agreements will be on terms and conditions reasonably acceptable to
Bain (it being understood that Bain shall not be required to make any
representations or warranties to the Company or the underwriters or any other
Person (other than representations and warranties regarding Bain and its
intended method of distribution) nor to undertake any indemnification
obligations to the Company or any other Person with respect thereto, except as
described in clause (vii) below).

 

(vii)         Indemnification.

 

(A)          With
respect to any proposed Public Offering in which a Bain Holder is participating
pursuant to the terms of this Agreement, the Company will, and it hereby does,
indemnify and hold harmless, to the extent permitted by law, the seller of any
Bain Shares covered by such registration statement, each controlling Affiliate
of such seller and their respective directors and officers, members or general
and limited partners (including any director, officer, affiliate, employee,
agent and controlling Person of any of the foregoing) (collectively, the “Indemnified
Parties”), against any and all losses, claims, damages or liabilities,
joint or several, and expenses to which such Indemnified Party may become
subject under the Securities Act, common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions or proceedings in respect thereof,
whether or not such Indemnified Party is a party thereto) arise out of or are
based upon (a) any untrue statement or alleged untrue statement of any
material fact contained in any registration statement under which such
securities were registered under the Securities Act, any preliminary, final or
summary prospectus contained therein, or any amendment or supplement thereto,
or (b) any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in
the case of a prospectus, in light of the circumstances under which they were
made) not misleading, and the Company will reimburse such Indemnified Party for
any legal or any other expenses reasonably incurred by it in connection with
investigating or defending against any such loss, claim, liability, action or
proceeding; provided that the Company shall not be liable to any
Indemnified Party in any such case to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense
arises out of or is based upon any untrue statement or alleged untrue statement
or omission or alleged omission made in such registration statement or
amendment or supplement thereto or in any such preliminary, final or summary
prospectus in reliance upon and

 

6

 

in conformity with written information furnished to the Company through
an instrument duly executed by such seller specifically stating that it is for
use in the preparation thereof; and provided, further, that the
Company will not be liable to any Person who participates as an underwriter in
the offering or sale of Bain Shares or any other Person, if any, who controls
such underwriter within the meaning of the Securities Act, under the indemnity
agreement in this clause (vii) with respect to any preliminary prospectus
or the final prospectus or the final prospectus as amended or supplemented, as
the case may be, to the extent that any such loss, claim, damage or liability
of such underwriter or controlling Person results from the fact that such
underwriter sold such securities to a person to whom there was not sent or
given, at or prior to the written confirmation of such sale, a copy of the
final prospectus or of the final prospectus as then amended or supplemented,
whichever is most recent, if the Company has previously furnished copies
thereof to such underwriter.  For
purposes of the last proviso to the immediately preceding sentence, the term “prospectus”
shall not be deemed to include the documents, if any, incorporated therein by
reference, and no Person who participates as an underwriter in the offering or
sale of Bain Shares or any other Person, if any, who controls such underwriter
within the meaning of the Securities Act, shall be obligated to send or give
any supplement or amendment to any document incorporated by reference in any
preliminary prospectus or the final prospectus to any person other than a
person to whom such underwriter had delivered such incorporated document or
documents in response to a written request therefor.  Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of such seller or
any Indemnified Party and shall survive the transfer of such securities by such
seller.

 

(B)           In
connection with any registration statement in which a Bain Holder or KKR Holder
is participating, each such holder shall furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in
connection with any such registration statement or prospectus and, to the
extent permitted by law.  The Company
will require, as a condition to including any Bain Shares or KKR Shares, as
applicable, in any registration statement filed in accordance with this
Agreement, that the Company shall have received an undertaking reasonably
satisfactory to it from the prospective seller of such Bain Shares or KKR
Shares or any underwriter to indemnify and hold harmless (in the same manner
and to the same extent as set forth in clause (vii)(A)) the Company and all
other prospective sellers with respect to any untrue statement or alleged
untrue statement in or omission or alleged omission from such registration
statement, any preliminary, final or summary prospectus contained therein, or
any amendment or supplement, if such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company through an
instrument duly executed by such seller or underwriter specifically stating
that it is for use in the preparation of such registration statement,
preliminary, final or summary prospectus or amendment or supplement, or a
document incorporated by reference into any of the foregoing.  Such indemnity shall remain in full force and
effect regardless of any investigation made

 

7

 

by or on behalf of the Company or any of the prospective sellers, or
any of their respective affiliates, directors, officers or controlling Persons
and shall survive the transfer of such securities by such seller.  In no event shall the liability of any
selling Bain Holder of Bain Shares or KKR Holder of KKR Shares hereunder be
greater in amount than the dollar amount of the proceeds received by such Bain
Holder or KKR Holder, as applciable, upon the sale of the securities under such
registration statement giving rise to such indemnification obligation.

 

(C)           In
the event the Company’s indemnification hereunder is unenforceable or otherwise
unavailable to an indemnified holder for any reason, the Company also agrees to
make such provisions, as are reasonably requested by the Indemnified Party, for
contribution to such party.  The
indemnification and contribution provided for under this Agreement shall remain
in full force and effect regardless of any investigation made by or on behalf
of the Indemnified Party and shall survive the transfer of securities.

 

(D)          Indemnification
similar to that specified in the preceding provisions of this clause (vii) (with
appropriate modifications) shall be given by the Company and each seller of
Bain Shares and KKR Shares with respect to any required registration or other
qualification of securities under any federal or state law or regulation or
governmental authority other than the Securities Act.  The obligations of the parties under this
clause (vii) shall be in addition to any liability which any party may
otherwise have to any other party.  To
the extent that any Bain Holder or KKR Holder has any additional rights to
indemnification in connection with any proposed Public Offering, each other
Bain Holder and KKR Holder participating in such Public Offering shall be
entitled to their pro rata share of such additional rights, if any.

 

(c)           Exempt Transaction Defined.  As used herein, the term “Exempt Transaction”
shall mean (i) sales by a KKR Holder to any KKR Affiliates (other than the
Company or any of its subsidiaries), (ii) sales by a KKR Holder pursuant
to Rule 144 (or any successor provision) under the Securities Act to a
Person who is not a KKR Affiliate, (iii) transfers by a KKR Holder to its
partners or members (and any subsequent sales by such partners or members) in
the form of dividends or distributions (whether upon liquidation or otherwise),
or (iv) sales by a KKR Holder made in a Public Offering; provided
that in the case of clauses (i) and (iii) above that such buyer or
member agrees in writing to be bound by the provisions of this Agreement, including
this paragraph (c).

 

3.             “Drag-Along”
Right with Respect to Bain Shares.  (a) 
In the event that the KKR Holders determine, during the term of this Agreement,
to transfer more than 50% of the KKR Shares to a Proposed Purchaser not
affiliated with the KKR Holders, other than in an Exempt Transaction (a “Drag-Along
Sale”), then upon the request of the KKR Holders, Bain and the other Bain
Holders (collectively, for purposes of this Section 3, “Bain”) will
transfer to such Proposed Purchaser at the same price and upon the same terms
and conditions as such transfer by the KKR Holders the number of Bain Shares
equaling the number derived by multiplying the total number of Bain Shares
owned by Bain by a fraction, the numerator of which is the total number of KKR
Shares that the KKR Holder has determined to transfer to such Proposed
Purchaser and the denominator of which is the total number of KKR Shares.  In the event that the

 

8

 

KKR Holders have signed an
agreement (a “Transaction Agreement”), with respect to KKR Shares, to vote in
favor of or tender in connection with a business combination transaction
entered into by the Company, then, upon the request of the KKR Holders, Bain
will execute a Transaction Agreement with the same terms and conditions as the
Transaction Agreement signed by the KKR Holders (subject to clause (i) of
the third sentence of Section 3(b) below). In the event that both
Sections 2(a) and 3 hereto apply to a single transaction, the “drag-along”
rights set forth in this Section 3 will have priority over the “tag-along”
rights set forth in Section 2(a) above, and the “tag-along” rights
set forth in Section 2 will become exercisable by the Bain following a
determination by the KKR Holders not to exercise their rights under this Section 3.

 

(b)           Notice.  Prior to making any Drag-Along Sale, the KKR
Holders shall, if they determine in their sole discretion that Bain should
participate in such transfer, provide Bain written notice (the “Drag-Along Notice”)
not less than 5 business days prior to the proposed date of the Drag-Along Sale
(the “Drag-Along Sale Date”).  The
Drag-Along Notice shall set forth:  (i) the
name and address of the Proposed Purchaser; (ii) the number of shares of
Common Stock to be sold to the Proposed Purchaser, (iii) the proposed
amount and form of consideration to be paid per share of Common Stock and the
material terms and conditions of the transfer; (iv) the Drag-Along Sale
Date and the date upon which Bain shall deliver to the KKR Holders the
certificates representing the Bain Shares, duly endorsed, and the power of
attorney referred to below; and (v) that the Proposed Purchaser has been
informed of the Drag-Along Sale rights and has agreed to purchase the Bain
Shares held by Bain in accordance with the terms hereof.  Bain shall (i) prior to closing of any
such transfer, execute any purchase agreement or other documentation required
by the Proposed Purchaser to consummate the transfer, which purchase agreement
and other documentation shall be on terms substantially identical to those
executed by the KKR Holders and in form and substance reasonably satisfactory
to Bain (it being understood that Bain shall only be required to participate
severally on a pro rata basis (based on the number of shares of Common Stock to
be sold) in any indemnification or other obligations that the KKR Holder agrees
to provide in connection with such sale (other than any such obligations that
relate solely to a particular stockholder, such as indemnification with respect
to representations and warranties given by a stockholder regarding such
stockholder’s title to and ownership of Common Stock and authority to enter
into the agreement, in which case only such stockholder shall be liable), and (ii) at
the closing of any such transfer, deliver to the Proposed Purchaser the
certificate or certificates representing the Bain Shares, duly endorsed for
transfer with signatures guaranteed, against receipt of the purchase price
thereof.  Prior to entering into a Transaction
Agreement, the KKR Holders shall, if they determine in their sole discretion
that Bain should execute a Transaction Agreement, provide Bain with written
notice (the “Transaction Agreement Notice”) not less than 5 business days prior
to the proposed date of the execution of the Transaction Agreement (the “Transaction
Agreement Date”).  The Transaction
Agreement Notice shall set forth:  (i) the
name and address of the counter-parties to the Transaction Agreement; (ii) the
proposed form of Transaction Agreement; and (iii) the material terms and
conditions of the business combination with the Company to which the
Transaction Agreement relates.  Bain
shall, at the signing and closing of such Transaction Agreement, execute and
deliver all other documentation required by such Transaction Agreement, which
documents shall be on terms substantially identical to those executed by the
KKR Holder and in form and

 

9

 

substance reasonably satisfactory to Bain
(subject to clause (i) of the third sentence of this Section 3(b)).

 

(c)           Conditions.  Bain’s obligations under this Section 3
to participate in any Drag-Along Sale are subject to the satisfaction of the
following conditions: (i) upon the consummation of the Drag-Along Sale,
Bain shall be entitled to receive the same form and amount of consideration
with respect to each share of each class of Company securities to be sold by
Bain in such Drag-Along Sale as received by each other KKR Holder holding such
class of Company securities, and (ii) if any KKR Holder holding a class of
Company securities held by Bain is given an option as to the form and amount of
consideration to be received, Bain shall be given the same option.

 

(d)           Effect of Drag-Along Sale.  If Bain receives its proportionate share of
the purchase price from a Drag-Along Sale, but have failed to deliver
certificates representing its shares of Common Stock as described in this Section 3,
they shall for all purposes be deemed no longer to be stockholders of the
Company, shall have no voting rights, shall not be entitled to any dividends or
other distributions with respect to the Common Stock held by them, and shall
have no other rights or privileges granted to stockholders under law or this
Agreement, in each case solely with respect to the shares of Common Stock
required to be transferred by Bain in such Drag-Along Sale pursuant to this Section 3.

 

4.             Preemptive
Rights on Certain Issuances. (a)  If at any time the Company proposes
to sell or issue to the KKR Holders, or any of their Affiliates, for cash any
shares of Common Stock, any shares of any other class of common stock,
preferred stock or other equity securities (collectively, “Equity Securities”),
any other class of debt or equity securities of the Company convertible into,
or exchangeable or exercisable for, Equity Securities, any options, warrants or
other rights to acquire Equity Securities, or any notes, debt securities, or
other indebtedness of the Company (collectively, “Company Interests”), the Company
shall grant to Bain the right to purchase (which right to purchase shall be
assignable by Bain to any Bain Holder who is a party to this Agreement) at the
same price and upon the same terms and conditions as such sale or issuance to
the KKR Holders or such Affiliates the number of Company Interests equaling the
number derived by multiplying the total number of such Company Interests
proposed to be sold or issued to the KKR Holders or such Affiliates by a
fraction, the numerator of which is the number of Bain Shares held by Bain and
the other Bain Holders and the denominator of which is the aggregate number of
outstanding shares of Common Stock held by the Bain Holders and the KKR Holders
(the “Allocated Company Interests”).  The
purchase right provided in this Section 4(a) (the “Purchase Right”)
shall apply at the time of issuance of any right, warrant or option or
convertible or exchangeable security and there shall be no additional Purchase
Right upon the conversion, exchange or exercise of any such security.

 

(b)           The Company shall give written notice of a proposed issuance
or sale described in Section 4(a) to Bain not less than 10 business
days prior to the proposed issuance or sale. 
Such notice (the “Issuance Notice”) shall set forth the material terms
and conditions of such proposed sale or issuance and the number of Company
Interests proposed to be sold or issued. 
At any time during the 10-day period following the receipt of an
Issuance Notice, Bain

 

10

 

shall have the right to irrevocably elect to
purchase all or a portion of the number of the Allocated Company Interests as
determined pursuant to, and in accordance with, Section 4(a) and upon
the other terms and conditions specified in the Issuance Notice by delivering a
written notice to the Company.  Except as
provided in the following sentence, such purchase shall be consummated
concurrently with the consummation of the issuance or sale described in the Issuance
Notice.  The closing of any purchase by
Bain may be extended beyond the closing of the transaction described in the
Issuance Notice to the extent necessary to obtain required governmental
approvals and other required approvals and the Company and Bain shall each use
its commercially reasonable efforts to obtain such approvals.

 

(c)           If Bain fails to exercise fully the Purchase Right within
the period described above, the Company shall be free to complete the proposed
issuance or sale of the Company Interests described in the Issuance Notice to
the KKR Holders with respect to which Bain failed to exercise the option set
forth in this Section 4 on terms no less favorable to the Company than
those set forth in the Issuance Notice (except that the amount of securities to
be issued or sold by the Company may be reduced) within 90 days following the
expiration of such period.  Any
securities offered or sold by the Company after such 90-day period must be
re-offered to Bain pursuant to the terms of this paragraph.

 

5.                                       Other
Rights.  (a)  Election of Director.

 

(i)            From and after the date of this
Agreement and until the provisions of this Section 5(a) cease to be
effective, each KKR Holder and each Bain Holder shall vote all shares of Common
Stock and any other voting securities of the Company over which such holder has
voting control and shall take all other necessary or desirable actions within
such holder’s control (whether in such holder’s capacity as a stockholder,
director, member of a board committee, officer of the Company or otherwise, and
including, without limitation, attendance at meetings in person or by proxy for
purposes of obtaining a quorum and execution of written consents in lieu of
meetings), and the Company shall take all necessary or desirable actions within
its control (including nominating directors, and calling special Board and
stockholder meetings), in order to give effect to the provisions of this Section 5(a).

 

(ii)           So long as Bain and its Affiliates own in the aggregate at
least 10% of the outstanding shares of Common Stock or at least 50% of the
shares of Common Stock held by Bain and its Affiliates at the effective time of
the Merger (as appropriately adjusted for stock splits, reverse stock splits,
recapitalization and similar transactions), then one representative designated
by Bain who is reasonably acceptable to the Company and the KKR Holders (it
being understood that any executive of Bain or its Affiliates will be
considered reasonably acceptable) shall be elected to the Board (the “Bain
Director”).  So long as Bain is entitled
to nominate a director pursuant to the preceding sentence, each Bain Holder
shall vote all Bain Shares in favor of any director for election to the Board
that is nominated by or on behalf of KKR.

 

(iii)          So long as Bain is entitled to nominate a director pursuant
to the preceding paragraph, and only prior to the initial Public Offering, Bain
shall also be entitled to have the Bain Director serve on the board of
directors (or comparable governing body) of each of the Company’s direct or
indirect subsidiaries where a KKR designee also serves, and to serve as a

 

11

 

member of any executive, compensation or
other committee of the Board or any subsidiary board where a KKR designee also
serves.  All rights pursuant to this
clause (iii) shall automatically terminate upon an initial Public
Offering.

 

(iv)          The Bain Director will be removed from the Board or a
subsidiary board or a committee thereof, with or without cause, at the written
request of Bain, but only upon such written notice and under no other
circumstances.  In the event of such
removal, or if the Bain Director dies, resigns, or otherwise ceases to serve
for any reason, Bain will have the right to designate another Bain Director to
fill such vacancy in accordance with clause (ii) above.

 

(b)           Information Rights.  During the period of time when Bain is
entitled to nominate a director pursuant to the terms of Section 5(a) above,
the Company will provide to the Bain internal Board materials and Board books
and any other financial or other information or materials concerning the
Company and its subsidiaries distributed to the members of the Board or to any
other stockholder of the Company, subject to Bain entering into customary
confidentiality agreements with respect to such materials.  If Bain is not entitled to so nominate a
director and there has not occurred a Public Offering, Bain shall be entitled
to quarterly management or similar reports (subject to customary confidentiality
arrangements), including quarterly and annual financial statements and budgets
for the Company and its subsidiaries, for so long as Bain and its Affiliates
hold at least 10% of the shares of Common Stock held by Bain at the effective
time of the Merger (as appropriately adjusted for stock splits, reverse stock
splits, recapitalization and similar transactions).

 

(c)           Confidentiality.  The Bain Holders and the KKR Holders each
agree to hold any information not generally available to the public concerning
the Company that it receives pursuant to its rights under this Agreement or
otherwise in its capacity as a stockholder or director in strict confidence and
agrees not to disclose such information to any party (other than to its
employees, partners, members, attorneys, accountants, advisors, and other
representatives (and in the case of Bain, to the other Bain Holders), or as
required by applicable law or court order). In addition, the Bain Holders and
the KKR Holders each agree not to purchase any equity or debt securities of the
Company unless such purchase complies with the Securities Act and the rules and
regulations thereunder and the state securities laws of any applicable state.

 

(d)           Minority
Protections.  For so long as Bain is
entitled to information rights pursuant to either sentence of Section 5(b),
without the prior written consent of Bain, the Company will not, and will not
permit any of its subsidiaries to, enter into, make or modify any transaction,
contract or agreement with the KKR Holders or any of their Affiliates (an “Affiliate
Transaction”) unless such Affiliate Transaction is on terms that are not
materially less favorable to the Company or its relevant subsidiary than those
that would have been obtained in a comparable transaction with an unrelated
Person on an arm’s-length basis; provided, that the term “Affiliate
Transaction” shall not include this Agreement or the monitoring letter
agreement dated as of the date hereof between the company and Kohlberg Kravis
Roberts & Co. L.P. (as the terms of such agreement are in effect as of
the date hereof).  The Company and the
KKR Holders agree that, without the prior written consent of Bain, the Company
will not make any amendment to its certificate of incorporation that would
result in the Bain Holders and the KKR Holders

 

12

 

ceasing to hold the
identical class of Common Stock, or that would change any of the terms,
conditions, rights, or preferences of the Bain Shares in any manner different
from the terms, conditions, rights, and preferences of the KKR Shares.

 

6.             Transfer.  (a)  Subject to the remainder of this Section 6(a) and
Section 2(b), Bain and the Bain Holders (collectively, for purposes of
this Section 6, “Bain”) may transfer, sell, assign, pledge, hypothecate or
otherwise dispose of (“Transfer”) any of its shares of Common Stock; provided
that Bain may Transfer its shares of Common Stock in a Private Sale only (i) pursuant
to the tag-along or drag-along rights under Sections 2 and 3 hereof, (ii) in
a transfer to any Affiliate of Bain, (iii) in a sale to the public
pursuant to Rule 144 (or any successor provision) under the Securities Act
after a Public Offering, (iv) in a transfer to its partners or members in
the form of dividends or distributions (whether upon liquidation or otherwise),
or (v) in a sale to any other transferee (which transferee under clause (v) must
be acceptable to the KKR Investor if such transfer either (A) occurs prior
to the initial Public Offering or (B) would, immediately after such
Transfer, result in any Person or group of related Persons not Affiliates of
Bain owning, in the aggregate, greater than 9.9% of the Company’s outstanding
Common Stock).  In the case of a transfer
pursuant to clause (iv) above prior to the initial Public Offering or pursuant
to clauses (ii) or (v) above at any time, the transferee thereof will
agree in writing reasonably satisfactory to the KKR Investor and the Company to
be bound by the provisions of this Agreement. 
No Transfer may be permitted if, as a result of such Transfer, the
Company would become subject to the reporting requirements of the Securities
Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

 

(b)           Bain agrees not to offer or Transfer any of its shares of
Common Stock unless such offer or Transfer complies with the Securities Act and
the rules and regulations thereunder and the state securities laws of any
applicable state.

 

(c)           Notwithstanding anything to the contrary set forth in this
Agreement, no transferee of Bain will acquire any rights under Section 5(a) of
this Agreement.

 

(d)           Any
transfer by the stockholders of a Bain Holder of any interests in such Bain
Holder shall be deemed to be a transfer of a proportionate number of the Bain
Shares held by such Bain Holder.

 

7.             Miscellaneous.  (a)  Non Competition.  (i)  Each of the KKR Investor and Bain
agrees on their own behalf and on behalf of their respective affiliated private
equity investment funds (which shall not include any Affiliate that invests
primarily in debt securities or in publicly traded securities and which
Affiliate does not receive confidential information concerning the Company
pursuant to Section 5(b) above) that during the Noncompete Period (as
defined below), such Person shall not, directly or indirectly, own or acquire
any equity ownership or profit participation interest (other than an ownership
position of less than 10% in any company whose shares of stock are publicly
traded) in any business which derives either (i) more than 35% of its
annual consolidated revenues or (ii) more than $100 million of annual
consolidated revenues (calculated as of the end of the most recent fiscal
year), from the provision of outsourced manufacturing services to the medical
device industry (other than the assembly or manufacture of electronic
components or equipment); provided, that a Person may acquire a

 

13

 

corporation or other entity
that exceeds the revenue test in clause (ii) but not clause (i), so long
as such Person shall within six months after the consummation of such
transaction divest a portion of the business of such corporation or other
entity such that the pro forma annual consolidated revenues after giving effect
to such acquisition would be less than $100 million.  Notwithstanding anything in this Section 7
to the contrary, each of the KKR Investor and Bain and their respective
affiliated investment funds may continue to directly or indirectly own
interests in any business currently held by such Person (regardless of the
amount of such Person’s current investment in such business), including making
additional investments in such business. 
“Noncompete Period” with respect to any Person shall mean the date
hereof through the earlier of (A) the first date on which such Person both
(x) owns less than 10% of the outstanding common stock of the Company and (y)
no longer has the right (or has validly and irrevocably waived the right) to
nominate a director for election to the Board of the Company pursuant to this
Agreement and (B) the date that is six months after such Person no longer
has the right (or has validly and irrevocably waived the right) to nominate a
director for election to the Board of the Company pursuant to this Agreement.

 

(i)            Notwithstanding paragraph (i) above,
if at any time a court holds that the restrictions stated in such paragraph (i) are
unreasonable or otherwise unenforceable under circumstances then existing, the
parties hereto agree that the maximum period, scope or geographic area determined
to be reasonable under such circumstances by such court will be substituted for
the stated period, scope or area.

 

(c)           Representation and Warranty.  As of the date hereof, Bain owns, of record
or beneficially, no shares of Common Stock or securities convertible or
exchangeable for shares of Common Stock, other than the Bain Shares subject to
this Agreement.

 

(d)           Assignment, Binding Effect,
Subsequent Agreement.  This Agreement shall not be assignable by the
parties hereto, except to any Person who in connection with a transfer of KKR
Shares or Bain Shares is required by this Agreement, in connection with such
transfer, to agree to be bound by the provisions of this Agreement.  Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective legal representatives, heirs, legatees, successors and permitted
assigns.  In the event that prior to an
initial Public Offering there is an initial public offering of common stock of
a subsidiary of the Company, the Bain Holders and the KKR Holders agree to
enter into an agreement with respect to any shares of common stock held by such
Bain Holders and KKR Holders in such subsidiary, such agreement having the same
terms, mutatis mutandis, as the
terms of this Agreement.

 

(e)           Costs and Expenses.  The Company will pay or cause to be paid all
reasonable out-of-pocket costs and expenses of any Bain Holder (including the
reasonable fees and disbursements of legal counsel) arising in connection with
the preparation, execution, and administration of this Agreement, including,
without limitation:

 

(i)            reasonable out-of-pocket fees
and expenses incurred by the Bain Holders (including the fees and disbursements
of one legal counsel acting on behalf of the Bain Holders) in connection with
any underwritten registration pursuant to Section 2(b) above;

 

14

 

(ii)           reasonable travel and other out-of-pocket expenses incurred
by Bain or the Bain Director in connection with participation in meetings of
the Board or any subsidiary board or any committee thereof;

 

(iii)          all out-of-pocket expenses incurred by Bain in connection
with the maintenance of its books and records, preparation of tax returns and
delivery of tax information to their partners and members relating to the Bain
Shares;

 

(iv)          any filing with any governmental agency with respect to any
Bain Holder’s investment in the Company or any other filing with any
governmental agency with respect to the Company or its subsidiaries that
mentions a Bain Holder; and

 

(v)           any amendments or waivers (whether or not the same become
effective) under or in respect of this Agreement.

 

The Company agrees to indemnify and hold
harmless the Bain Holders from and against any liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, claims, costs, attorneys’
fees, expenses and disbursements of any kind which may be imposed upon,
incurred by or asserted against them in any manner relating to or arising out
of any litigation to which such Bain Holder is made a party in its capacity as
a stockholder or owner of securities of the Company.  The Bain Holders shall also be entitled to
any additional indemnification protections given by the Company to any KKR
Holder in its capacity as a stockholder of the Company.

 

(f)            Amendments.  The provision of this Agreement, including
the provisions of this sentence, may be amended, modified or supplemented only
by a written instrument executed by (i) holders of at least a majority of
the KKR Shares, (ii) holders of at least a majority of the Bain Shares and
(iii) the Company.

 

(g)           Governing Law.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York.  Each of the parties hereto agrees to submit
to the jurisdiction of the state and federal courts within the City of New York
in any action or proceeding arising out of or relating to this Agreement.

 

(h)           Interpretation.  The headings of the sections contained in
this Agreement are solely for the purpose of reference, are not part of the
agreement of the parties and shall not affect the meaning or interpretation of
this Agreement.

 

(i)            Notices.  All notices and other communications required
or permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or by telecopy or seven days
after having been sent by certified mail, return receipt requested, postage
prepaid, to the parties to this Agreement at the following address or to such
other address as any party to this Agreement shall specify by notice to the
other parties:

 

(1)                                  If
to the KKR Investor or a KKR Holder, to it in care of:

 

15

 

Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200 

Menlo Park, CA 94025

Attention:  Michael W. Michelson

 

with a copy to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention:  Sean D. Rodgers

 

(2)                                  If
to Bain or any Bain Holder, to it in care of:

Bain Capital Partners LLC

 

111 Huntington Avenue

Boston, MA 02199

Attention:  Steve Barnes

 

with a copy to:

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

	
  Attention:

  	
  Matthew E. Steinmetz, P.C.

  
	
   

  	
  Jeffrey W. Richards

  

 

(3)                                  If
to the Company, to it in care of:

 

Accellent Inc. 

200 West 7th Avenue 

Collegeville, PA 19426-0992

Attention:  Ron Sparks

 

with a copy to:

 

Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200 

Menlo Park, CA 94025

Attention:  Michael W. Michelson

 

and

 

16

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention:  Sean D. Rodgers

 

(j)            Waiver and Consent.  No action taken pursuant to this Agreement,
including, without limitation, any investigation by or on behalf of any party,
shall be deemed to constitute a waiver by the party taking such action of
compliance with any representations, warranties, covenants or agreements
contained herein.  The waiver by any
party hereto of a breach of any provision of this Agreement shall not operate
or be construed as waiver of any preceding or succeeding breach and no failure
by any party to exercise any right or privilege hereunder shall be deemed a
waiver of such party’s rights or privileges hereunder or shall be deemed a
waiver of such party’s rights to exercise the same at any subsequent time or
times hereunder.  Each party hereto, in
addition to being entitled to exercise all rights provided herein, in the
charter or granted by law, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement.  Each party hereto agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of the provisions of this Agreement and hereby agrees to waive the
defense in any action for specific performance that a remedy at law would be
adequate.

 

(k)           Inspection.  Copies of this Agreement will be available
for inspection or copying by any party at the offices of the Company through
the Secretary of the Company.

 

(l)            Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original and all of which
together shall be deemed to constitute one and the same agreement.

 

(m)          Severability.  In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired
thereby.

 

(n)           Entire Agreement.  This Agreement is intended by the parties as
a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the rights of the Minority Investors herein.  This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject
matters.

 

(o)           Limited Liability.  Notwithstanding anything that may be
expressed or implied in this Agreement, each KKR Holder and Bain, by its
acceptance of the benefits of this Agreement, covenants, agrees and
acknowledges that no recourse under this Agreement or any documents or
instruments delivered in connection with this Agreement shall be had against
any officer, agent or employee of any KKR Holder or Bain, against any partner
or member of any KKR Holder or Bain or any director, officer, employee,
partner, member, affiliate or assignee of any of the foregoing, whether by the
enforcement of any assessment or by any legal or equitable

 

17

 

proceeding, or by virtue of any statute,
regulation or other applicable law, it being expressly agreed and acknowledged
that no personal liability whatsoever shall attach to, be imposed on or
otherwise be incurred by an officer, agent or employee of any KKR Holder or
Bain or any partner or member of any KKR Holder or Bain or any director,
officer, employee, partner, member, affiliate or assignee of any of the
foregoing, as such for any obligations of any KKR Holder or Bain under this
Agreement or any documents or instruments delivered in connection with this
Agreement or for any claim based on, in respect of or by reason of such
obligations or their creation.

 

[signature page follows]

 

18

 

IN WITNESS
WHEREOF, the parties have executed this Stockholders’ Agreement as of the date
first above written.

 

	
   

  	
  ACCELLENT HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  W. Michelson

  	
   

  
	
   

  	
   

  	
  Name:
  Michael W. Michelson

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCELLENT HOLDINGS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  W. Michelson

  	
   

  
	
   

  	
   

  	
  Name:
  Michael W. Michelson

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BAIN CAPITAL INTEGRAL INVESTORS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By Bain
  Capital Investors, LLC

  
	
   

  	
  Its
  administrative member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John
  Connaughton

  	
   

  
	
   

  	
   

  	
  Name: John
  Connaughton

  
	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BCIP TCV LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By Bain
  Capital Investors, LLC

  
	
   

  	
  Its
  administrative member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John
  Connaughton

  	
   

  
	
   

  	
   

  	
  Name: John
  Connaughton

  
	
   

  	
   

  	
  Title:
  Managing Director

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