Document:

Amended and Restated Employment Agreement--Raymond Laubenthal

 Exhibit 10.2 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS AGREEMENT, dated as of October 29, 2008, is
made by and between TransDigm Group Incorporated, a Delaware corporation (the “Company”), and Raymond Laubenthal (the “Executive”). 
 RECITALS: 
 WHEREAS, the Executive is a party to an employment agreement with TransDigm Holding
Company dated as of November 18, 2005 and effective as of October 1, 2005 (the “Prior Employment Agreement”); and 
 WHEREAS, TransDigm Holding Company was merged into TransDigm Inc., a wholly owned subsidiary of the Company; and 
 WHEREAS, the
Executive holds the position of President and Chief Operating Officer of the Company; and 
 WHEREAS, the parties would like to amend and
restate the Prior Employment Agreement on the terms and subject to the conditions set forth in this Agreement. 
 NOW, THEREFORE, in
consideration of the foregoing and of the respective covenants and agreements set forth below, the parties hereto agree as follows: 
 1. Certain
Definitions. 
 (a) “Annual Base Salary” shall have the meaning set forth in Section 4(a). 
 (b) “Board” shall mean the Board of Directors of the Company. 
 (c) “Cause” shall mean either of the following:(i) the repeated failure by the Executive, after written notice from the Board,
substantially to perform his material duties and responsibilities as an officer or employee or director of the Company or any of its subsidiaries (other than any such failure resulting from incapacity due to reasonably documented physical or mental
illness), or (ii) any willful misconduct by the Executive that has the effect of materially injuring the business of the Company or any of its subsidiaries, including, without limitation, the disclosure of material secret or confidential
information of the Company or any of its subsidiaries. 
 (d) “COBRA” shall mean the Consolidated Omnibus Budget
Reconciliation Act of 1985, as may be amended from time to time. 
 (e) “Code” shall mean the Internal Revenue Code of 1986,
as amended. Reference to a Section of the Code includes all rulings, regulations, notices, announcements, decisions, orders and other pronouncements that are issued by the United States Department of the Treasury, the Internal Revenue Service, or
any court of competent jurisdiction that are lawful and pertinent to the interpretation, application or effectiveness of such Section. 
 (f)
“Common Stock” shall mean the common stock of the Company, $0.01 par value per share. 
 (g) “Company”
shall have the meaning set forth in the preamble hereto. 
 (h) “Compensation Committee” shall mean the Compensation
Committee of the Board whose members shall be appointed by the Board from time to time. 
 (i) “Date of Termination” shall
mean (i) if the Executive’s employment is terminated by reason of his death, the date of his death, and (ii) if the Executive’s employment is terminated pursuant to Sections 5(a)(ii) - (vi), the date specified in the Notice of
Termination. 
 (j) “Disability” shall mean the Executive’s absence from employment with the Company due to:
(i) his inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months; or (ii) such medically determinable physical or mental impairment, which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, and for which the
Executive is receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering the Company’s employees. 

 (k) “Effective Date” shall mean October 1, 2005. 
 (l) “Equity Compensation Agreements” shall mean any written agreements between the Company and the Executive pursuant to which the
Executive holds or is granted options to purchase Common Stock, including, without limitation, agreements evidencing options granted under any option plan adopted or maintained by the Company for employees generally, that certain agreement among the
Company, the Executive and Warburg Pincus Private Equity VIII, L.P., governing the treatment of “Rollover Options” (as described therein), and any management deferred compensation or similar plans of the Company. 
 (m) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (n) “Executive” shall have the meaning set forth in the preamble hereto. 
 (o) “Good Reason” shall mean the occurrence of any of the following: (i) a material diminution in the Executive’s title,
duties or responsibilities, without his prior written consent, or (ii) a reduction of the Executive’s aggregate cash compensation (including bonus opportunities), benefits or perquisites, without his prior written consent, (iii) the
Company requires the Executive, without his prior written consent, to be based at any office or location that requires a relocation greater than 30 miles from Cleveland, Ohio, or (iv) any material breach of this Agreement by the Company.

 (p) “Notice of Termination” shall have the a meaning set forth in Section 5(b). 
 (q) “Payment Period” shall have the meaning set forth in Section 6(b)(i). 
 (r) “Specified Employee” shall have the meaning set forth in Code Section 409A. 
 (s) “Term” shall have the meaning set forth in Section 2. 
 2. Employment. The Company shall employ the Executive, for the period set forth in this Section 2, in the position(s) set forth in Section 3 and upon the other terms and conditions herein provided.
The term of employment under this Agreement (the “Term”) shall be for the period beginning on the Effective Date and ending on the fifth anniversary thereof unless earlier terminated as provided in Section 5; provided, however, that
unless so earlier terminated or unless the Executive or the Company shall give written notice to the other of his or its intention not to renew this Agreement no less than sixty days prior to the scheduled expiration thereof, upon the fifth
anniversary of the Effective Date, this Agreement shall automatically be renewed for an additional two year period. 
 3. Position and Duties. During
the Term, the Executive shall serve as President and Chief Operating Officer of each of the Company and its subsidiary, TransDigm, Inc. (“TransDigm”), with such customary responsibilities, duties and authority as may from time to time be
assigned to the President and Chief Operating Officer. During the Term, the Executive shall devote substantially all his working time and efforts to the business and affairs of the Company and TransDigm; provided, that it shall not be considered a
violation of the foregoing for the Executive to (i) with the prior consent of the Board (which consent shall not unreasonably be withheld), serve on corporate, industry, civic or charitable boards or committees, and (ii) manage his
personal investments, so long as none of such activities significantly interferes with the Executive’s duties hereunder. 
 4. Compensation and
Related Matters. 
 (a) Annual Base Salary. During the Term, the Executive shall receive a base salary at a rate that is no less
than $280,000 per annum payable in accordance with the Company’s normal payroll practices, which shall be reviewed by the Compensation Committee on or prior to each anniversary of the Effective Date during the Term and may be increased, but not
decreased, upon such review (the “Annual Base Salary”). 
 (b) Bonus. For each fiscal year during the Term, the Executive
shall be eligible to participate in the Company’s annual cash bonus plan in accordance with terms and provisions which shall be consistent with the Company’s executive bonus policy in effect as of the Effective Date. 
  

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 (c) Non-Qualified Deferred Compensation. During the Term, the Executive shall be eligible to
participate in any non-qualified deferred compensation plan or program (if any) offered by the Company to its executives. 
 (d) Long Term
Incentive Compensation. During the Term, the Executive shall be entitled to participate in the Option Plan or any successor plan thereto. 
 (e) Benefits. During the Term, the Executive shall be entitled to participate in the other employee benefit plans, programs and arrangements of the Company now (or, to the extent determined by the Board or Compensation Committee,
hereafter) in effect which are applicable to the senior officers of the Company generally, subject to and on a basis consistent with the terms, conditions and overall administration thereof (including the right of the Company to amend, modify or
terminate such plans). 
 (f) Expenses. Pursuant to the Company’s customary policies in force at the time of payment, the
Executive shall be reimbursed for all expenses properly incurred by the Executive on the Company’s behalf in the performance of the Executive’s duties hereunder. 
 (g) Vacation. The Executive shall be entitled to an amount of annual vacation days, and to compensation in respect of earned but unused vacation
days in accordance with the Company’s vacation policy as in effect as of the Effective Date. The Executive shall also be entitled to paid holidays in accordance with the Company’s practices with respect to same as in effect as of the
Effective Date. 
 (h) Automobile. During the Term, the Company shall provide the Executive with an annual automobile allowance at a
rate determined by the Chief Executive Officer and generally consistent with allowance currently granted to the Executive. 
 (i) Club
Membership. During the Term, the Company shall pay on behalf of the Executive, or reimburse the Executive for, annual membership fees payable in connection with the Executive’s membership in one country club of the Executive’s choice.

 5. Termination. 
 (a) The
Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement only under the following circumstances and in accordance with subsection (b): 
 (i) Death. The Executive’s employment hereunder shall terminate upon his death. 
 (ii) Disability. If the Company determines in good faith that the Executive has incurred a Disability, the Company may give the
Executive written notice of its intention to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive, provided
that within such 30 day period the Executive shall not have returned to full-time performance of his duties. The Executive shall continue to receive his Annual Base Salary until the 90th day following the date of the Notice of Termination.

 (iii) Termination for Cause. The Company may terminate the Executive’s employment hereunder for Cause.

 (iv) Resignation for Good Reason. The Executive may terminate his employment hereunder for Good Reason. 

(v) Termination without Cause. The Company may terminate the Executive’s employment hereunder without Cause. 
 (vi) Resignation without Good Reason. The Executive may resign his employment hereunder without Good Reason. 
 (b) Notice of Termination. Any termination of the Executive’s employment by the Company or by the Executive under this Section 5 (other
than termination pursuant to subsection (a)(i)) shall be communicated by a written notice from the Board or the Executive to the other indicating the specific termination provision in this Agreement relied upon, setting forth in reasonable detail
the facts and circumstances claimed to provide a basis for 

  

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termination of the Executive’s employment under the provision so indicated, and specifying a Date of Termination which, except in the case of
Termination by reason of Disability or Termination for Cause pursuant to Section 5(a)(ii) or 5(a)(iii), respectively, shall be at least 90 days following the date of such notice (a “Notice of Termination”). In the event of Termination
for Cause pursuant to Section 5(a)(iii), the Executive shall have the right, if the basis for such Cause is curable, to cure the same within 15 days following the Notice of Termination for Cause, and Cause shall not be deemed to exist if the
Executive cures the event giving rise to Cause within such 15 day period. In the event of Termination by the Executive for Good Reason pursuant to Section 5(a)(iv), the Company shall have the right, if the basis for such Good Reason is curable,
to cure the same within 15 days following the Notice of Termination for Good Reason, and Good Reason shall not be deemed to exist if the Company cures the event giving rise to Good Reason within such 15 day period. The Executive shall continue to
receive his Annual Base Salary, annual bonus and all other compensation and perquisites referenced in Section 4 through the Date of Termination. 
 6.
Severance Payments. 
 (a) Termination for any Reason. In the event the Executive’s employment with the Company is
terminated for any reason, the Company shall pay the Executive (or his beneficiary in the event of his death) any unpaid Annual Base Salary that has accrued as of the Date of Termination, any unreimbursed expenses due to the Executive in accordance
with the Company’s expense reimbursement policy and an amount equal to compensation for accrued but unused sick days and vacation days. The Executive shall also be entitled to accrued, vested benefits under the Company’s benefit plans and
programs as provided therein. The Executive shall be entitled to the additional payments and benefits described below only as set forth herein. 
 (b) Termination without Cause, Resignation for Good Reason or Termination by Reason of Death or Disability. Subject to Sections 6(c) and (d) and the restrictions contained herein, in the event of the Executive’s Termination
without Cause (pursuant to Section 5(a)(v)), Resignation for Good Reason (pursuant to Section 5(a)(iv)) or termination by reason of death or Disability (pursuant to Section 5(a)(i) or (ii), respectively), the Company shall pay to the
Executive the amounts described in subsection (a). In addition, subject to Section 6(c) and (d) and the restrictions contained herein, the Company shall do all of the following: 
 (i) The Company shall pay to the Executive (or his beneficiary in the event of his death) an amount equal to the “Severance
Amount” described below. For purposes of this Agreement, the Severance Amount is equal to the sum of: 
 (A) 1.0 times
his Annual Base Salary, and 
 (B) 1.0 times the greater of (I) the total of all bonuses paid (or payable) to the
Executive in respect of the fiscal year ending immediately prior to the Date of Termination, excluding any bonuses that are extraordinary in nature (e.g. a transaction related bonus), or (II) the target bonuses for the fiscal year in which the Date
of Termination falls, determined in accordance with the Company’s bonus program or programs, if any. 
 The Severance Amount as so
determined shall be payable to the Executive (or his beneficiary) in substantially equal installments over the 12 month period following the Date of Termination (the “Payment Period”) in accordance with the Company’s regular payroll
practices; 
 (ii) The Company shall offer to the Executive continuation of any health plan coverage of the Executive in
accordance with the requirements of applicable law (e.g. COBRA coverage), at a monthly cost to the Executive that is not greater than the monthly cost that the Executive is being charged for such coverage or coverages as of the Date of Termination.
The Company may require the Executive to complete and file any election forms that are generally required of other employees to obtain COBRA coverage; and the Executive’s COBRA coverage may be terminable in accordance with applicable law;

 (iii) During each month in the Payment Period, the Company shall pay
to the Executive an amount equal to one-twelfth ( 1/12) of the annual automobile allowance that is in effect under
Section 4(h) as of the Date of Termination. 
  

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 (iv) During each month in the
Payment Period, the Company shall reimburse the Executive for any membership fees in a country club that the Executive is obligated to pay for such month, in an amount not to exceed one-twelfth ( 1/12) of the annual membership fees that the Executive is entitled to have reimbursed under Section 4(i) as of the Date of Termination. The Executive shall apply
for reimbursement by not later than the last day of the second calendar year following the date the expenses were incurred; and any reimbursement that is due hereunder shall be paid to the Executive shall be paid within 60 days of his application
for the reimbursement. 
 (c) Benefits Provided Upon Termination of Employment. If the Executive’s termination or
resignation does not constitute a “separation from service,” as such term is defined under Code Section 409A, the Executive shall nevertheless be entitled to receive all of the payments and benefits that the Executive is entitled to
receive under this Agreement on account of his termination of employment. However, the payments and benefits that the Executive is entitled to under this Agreement shall not be provided to the Executive until such time as the Executive has incurred
a “separation from service” within the meaning of Code Section 409A. 
 (d) Payments on Account of Termination to a Specified Employee. Notwithstanding the foregoing, in the event that the Executive is determined to be a Specified Employee at the time of his termination of employment under this Agreement
(or, if later, his “separation from service” under Code Section 409A), to the extent that a payment, reimbursement or benefit under Section 6(b) is considered to provide for a “deferral of compensation” (as determined
under Code Section 409A), then such payment, reimbursement or benefit shall not be paid or provided until six months after the Executive’s separation from service, or his death, whichever occurs first. Any payments, reimbursements or
benefits that are withheld under this provision for the first six months shall be payable in a lump sum on the 181st day after such termination of
employment (or, if later, separation from service). The restrictions in this Section 6(d) shall be interpreted and applied solely to the minimum extent necessary to comply with the requirements of Code Section 409A(a)(2)(B). Accordingly,
payments, benefits or reimbursements under Section 6(b) or any other part of this Agreement may nevertheless be provided to the Executive with the six-month period following the date of the Executive’s termination of employment under this
Agreement (or, if later, his “separation from service” under Code Section 409A), to the extent that it would nevertheless be permissible to do so under Code Section 409A because those payments, reimbursements or benefits are
(i) described in Treasury Regulations Section 1.409A-1(b)(9)(iii) (i.e., payments within the limitations therein that are being made on account of an involuntary termination or termination for good reason, within the meaning of the
Treasury Regulations), or (ii) benefits described in Treasury Regulations Section 1.409A-1(b)(9)(v) (e.g. health care benefits). 
 7.
Competition; Nonsolicitation. 
 (a) During the Term and, following any termination of Executive’s employment, for a period equal
to (i) the Payment Period, in the case of a termination of employment for which payments are made pursuant to Section 6(b) hereof, or (ii) twenty-four (24) months from the date of such termination in the event of a voluntary
termination of employment by the Executive without Good Reason, or a termination by the Company for Cause, the Executive shall not, without the prior written consent of the Board, directly or indirectly engage in, or have any interest in, or manage
or operate any person, firm, corporation, partnership or business (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages in any business (other than a business that constitutes
less than 5% of the relevant entity’s net revenue and a proportionate share of its operating income) which competes with any business of the Company or any entity owned by it anywhere in the world; provided, however, that the Executive shall be
permitted to acquire a stock interest in such a corporation provided such stock is publicly traded and the stock so acquired does not represent more than one percent of the outstanding shares of such corporation. 
 (b) During the Term and for a period of two years following any termination of the Executive’s employment, the Executive shall not, directly or
indirectly, on his own behalf or on behalf of any other person or entity, whether as an owner, employee, service provider or otherwise, solicit or induce any person who is or was employed by, or providing consulting services to, the Company or any
of its subsidiaries during the twelve-month period prior to the date of such termination, to terminate their employment or consulting relationship with the Company or any such subsidiary. 
 (c) In the event the agreement in this Section 7 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its
extending for too great a period of time or over too great a geographical area or by 

  

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reason of its being too extensive in any other respect, it shall be interpreted to extend only over the maximum period of time for which it may be
enforceable, and/or over the maximum geographical area as to which it may be enforceable and/or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. 
 8. Nondisclosure of Proprietary Information. 
 (a)
Except as required in the faithful performance of the Executive’s duties hereunder or pursuant to subsection (c), the Executive shall, in perpetuity, maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate,
disclose or publish, or use for his benefit or the benefit of any person, firm, corporation or other entity any confidential or proprietary information or trade secrets of or relating to the Company, including, without limitation, information with
respect to the Company’s operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status,
compensation paid to employees or other terms of employment, except for such information which is or becomes publicly available other than as a result of a breach by the Executive of this Section 8, or deliver to any person, firm, corporation
or other entity any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets. The parties hereby stipulate and agree that as between them the foregoing
matters are important, material and confidential proprietary information and trade secrets and affect the successful conduct of the businesses of the Company (and any successor or assignee of the Company). 
 (b) Upon termination of the Executive’s employment with the Company for any reason, the Executive shall promptly deliver to the Company all
correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s customers, business plans, marketing strategies, products or processes
and/or which contain proprietary information or trade secrets. 
 (c) The Executive may respond to a lawful and valid subpoena or other legal
process but shall give the Company the earliest possible notice thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought and shall assist such counsel
in resisting or otherwise responding to such process. 
 9. Injunctive Relief. It is recognized and acknowledged by the Executive that a breach of the
covenants contained in Sections 7 and 8 will cause irreparable damage to the Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate.
Accordingly, the Executive agrees that in the event of a breach of any of the covenants contained in Sections 7 and 8, in addition to any other remedy which may be available at law or in equity, the Company shall be entitled to specific performance
and injunctive relief. 
 10. Survival. The expiration or termination of the Term shall not impair the rights or obligations of any party hereto which
shall have accrued hereunder prior to such expiration. 
 11. Binding on Successors. This Agreement shall be binding upon and inure to the benefit of
the Company, the Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. 
 12. Governing Law. This Agreement shall be governed, construed, interpreted and enforced in accordance with the substantive laws of the State of Ohio. 

13. Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect. 
  

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 14. Notices. Any notice, request, claim, demand, document or other communication hereunder to any party shall be
effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by telex, telecopy, or certified or registered mail, postage prepaid, as follows: 
 (a) If to the Company, to: 
 TransDigm Group Incorporated 
 The Tower at Erieview 
 1301 E. 9th Street, Suite 3710 
 Cleveland, Ohio 44114 
 Attention: W. Nicholas Howley, CEO and Chairman 
 (b) If to the Executive, to him at the address set forth below under his signature; 
 or at any other address
as any party shall have specified by notice in writing to the other party in accordance with this Section 14. 
 15. Counterparts. This Agreement
may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement. 
 16. Entire Agreement; Prior Employment Agreement. The terms of this Agreement, together with the Equity Compensation Agreements are intended by the parties to be the final expression of their agreement with respect to the employment
of the Executive by the Company and may not be contradicted by evidence of any prior or contemporaneous agreement. The parties further intend that this Agreement, and the aforementioned contemporaneous documents, shall constitute the complete and
exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement. 
 17. Amendments; Waivers. This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by the Executive and the Chief
Executive Officer. By an instrument in writing similarly executed, the Executive or the Company may waive compliance by the other party or parties with any provision of this Agreement that such other party was or is obligated to comply with or
perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy or power hereunder shall preclude any
other or further exercise of any other right, remedy or power provided herein or by law or in equity. 
 18. No Inconsistent Actions. The parties
hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions or essential intent of this Agreement. Furthermore, it is the intent of the parties hereto to act in a fair and reasonable
manner with respect to the interpretation and application of the provisions of this Agreement. 
 19. Arbitration. Any dispute or controversy arising
under or in connection with this Agreement shall be settled exclusively by arbitration, conducted before a panel of three arbitrators in Cleveland, Ohio, in accordance with the rules of the American Arbitration Association then in effect. Judgment
may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any
continuation of any violation of the provisions of Section 7 or 8 of this Agreement and the Executive hereby consents that such restraining order or injunction may be granted without the necessity of the Company’s posting any bond; and
provided further, that the Executive shall be entitled to seek specific performance of his right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement.
Each of the parties hereto shall bear its share of the fees and expenses of any arbitration hereunder. 
 20. Indemnification and Insurance; Legal
Expenses. During the Term and so long as the Executive has not breached any of his obligations set forth in Sections 7 and 8, the Company shall indemnify the Executive to the fullest extent permitted by the laws of the State of Delaware, as in
effect at the time of the subject act or omission, and shall advance to the Executive reasonable attorneys’ fees and expenses as such fees and expenses are incurred (subject to an undertaking from the Executive to repay such advances if it
shall be finally determined by a judicial decision which is not subject to further appeal that the Executive was not entitled to the reimbursement of such fees and expenses) and he shall be entitled to the protection of any insurance policies the
Company shall elect to maintain generally for the benefit of its directors and officers (“Directors and Officers Insurance”) against all costs, charges 

  

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and expenses incurred or sustained by him in connection with any action, suit or proceeding to which he may be made a party by reason of his being or having
been a director, officer or employee of the Company or any of its subsidiaries or his serving or having served any other enterprise as a director, officer or employee at the request of the Company (other than any dispute, claim or controversy
arising under or relating to this Agreement). The Company covenants to maintain during the Term for the benefit of the Executive (in his capacity as an officer and director of the Company) Directors and Officers Insurance providing customary
benefits to the Executive. 
 (SIGNATURE PAGE FOLLOWS) 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written. 
  

			
	TRANSDIGM GROUP INCORPORATED
		
	By:	 	 /s/ W. Nicholas Howley

	Name:	 	W. Nicholas Howley
	Title:	 	Chief Executive Officer
	
	EXECUTIVE
	
	 /s/ Raymond Laubenthal

	 Raymond Laubenthal

  

 9Amendment Number Two to Credit Agreement, dated September 5, 2008

 Exhibit 10.23A 
 AMENDMENT NUMBER TWO TO CREDIT AGREEMENT 
 This AMENDMENT NUMBER TWO TO CREDIT AGREEMENT
(this “Amendment”) is entered into as of September 5, 2008, by and among SolarWinds, Inc., a Delaware corporation (“Holdings”), SolarWinds.Net, LLC, a Delaware limited liability company (the
“LLC”), the Lenders party thereto from time to time, GoldenTree Asset Management, LP, as Lead Arranger and Syndication Agent (the “Syndication Agent”), and Wells Fargo Foothill, LLC, a Delaware limited
liability company (“WFF”), as Administrative Agent (together with its permitted successors in such capacity, “Administrative Agent”) and as Collateral Agent (together with its permitted successors in
such capacity, “Collateral Agent”) with reference to the following: 
 WHEREAS, Holdings, LLC, the Lenders, and
Agents are parties to that certain Credit and Guaranty Agreement, dated as of December 13, 2005 (as amended, restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”); 
 WHEREAS, Holdings, LLC, the other Grantors named therein, and Collateral Agent are parties to that certain First Lien Pledge and Security
Agreement, dated as of December 13, 2005 (as amended, restated, supplemented, or otherwise modified from time to time, the “Security Agreement”); 
 WHEREAS, Holdings and LLC have requested that the Secured Parties amend the Credit Agreement as provided herein; and 
 WHEREAS, subject to the terms and conditions set forth herein, the Secured Parties, Holdings, and LLC are willing to make the amendments set forth
in this Amendment. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1.
Defined Terms. Capitalized terms used herein and not defined herein shall have the meanings ascribed to them in the Credit Agreement, as amended hereby. 
 2. Amendments to Credit Agreement. 
 (a) All references to (a) “SolarWinds.Net, Inc.”
appearing in the Credit Agreement and the other Credit Documents shall be deleted and replaced with “SolarWinds, Inc.” and (b) “SolarWinds.Net, Inc., an Oklahoma corporation” appearing in the Credit Agreement and the other
Credit Documents shall be deleted and replaced with “SolarWinds, Inc., a Delaware corporation”. 
 (b) The following definitions
are hereby added to Section 1.1 of the Credit Agreement in alphabetical order: 
 “After-Acquired Intellectual Property Security
Agreement” means any security agreement made by each of the Grantors in favor of Collateral Agent in form and substance as set forth in Exhibit E-2 to the Pledge and Security Agreement. 
  

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 “Second Amendment” means that certain Amendment Number Two to Credit Agreement, dated as of
September 5, 2008, among Holdings, Company, the Lenders, and Agents. 
 “Second Amendment Closing Date” means the date that
all of the conditions set forth in Section 5 of the Second Amendment shall be satisfied (or waived by Administrative Agent in its sole discretion). 
 “Second Lien Agents” means each of (a) Administrative Agent, (b) Syndication Agent and (c) Collateral Agent, as each such term is defined in the Second Lien Credit Agreement. 
 (c) Clauses (a) and (b) of the definition of “Change of Control” in Section 1.1 of the Credit Agreement are hereby amended and
restated in their entirety as follows: 
 “(a) prior to an IPO, any of the following occurs: (i) prior to the second anniversary of
the Acquisition, the Permitted Holders, directly or indirectly, cease to own, or to have the power to vote or direct the voting of, Capital Stock of Holdings representing at least 60.1% of the voting power of the total outstanding Capital Stock of
Holdings, or (ii) on or after the second anniversary of the Acquisition, the Permitted Holders, directly or indirectly, cease to own, or to have the power to vote or direct the voting of, Capital Stock of Holdings representing at least 50.1% of
the voting power of the total outstanding Capital Stock of Holdings, or (iii) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than the Permitted Holders described
in clauses (a) and (b) of the definition of Permitted Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause such person or group shall be deemed to
have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of Capital Stock of Holdings
representing more than 50% of the voting power of the total outstanding Capital Stock of Holdings; 
 (b) following an IPO, either of the
following occurs: (i) the Permitted Holders, directly or indirectly, shall fail to own, or to have the power to vote or direct the voting of, Capital Stock of Holdings representing at least 50.1% of the voting power of the total outstanding
Capital Stock of Holdings or (ii) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, is or becomes the beneficial owner (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this clause such person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire,
whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of Capital Stock of Holdings representing more than 35% of the voting power of the total outstanding Capital Stock of Holdings;”.

 (d) The definition of “Consolidated Capital Expenditures” in Section 1.1 of the Credit Agreement is hereby amended by
(i) deleting the word “and” appearing before clause (iii), and (ii) adding the following after clause (iii): 
 “,
and (iv) the consideration paid and expenditures made in connection with any Permitted Acquisition.” 
  

 2 

 (e) The definition of “Credit Document” in Section 1.1 of the Credit Agreement is hereby
amended and restated in its entirety as follows: 
 “Credit Document” means any of this Agreement, the Notes, if any, the
Intercreditor Agreement, any After-Acquired Intellectual Property Security Agreement, the Collateral Documents, and all other documents, instruments or agreements executed and delivered by a Credit Party for the benefit of any Agent or any Lender in
connection herewith. 
 (f) The definition of “Permitted Acquisition” in Section 1.1 of the Credit Agreement is hereby amended
by (i) deleting the word “and” appearing before clause (iv), and (ii) adding the following after clause (iv): 
 “,
and (v) no Default or Event of Default pursuant to Sections 8.1(a), (b), (c) (solely to the extent that such Default or Event of Default concerns Section 6.8), (f), and (g) shall have occurred and be continuing or would result
from the consummation of the proposed Acquisition.” 
 (g) Clause (2)(C) of the last paragraph of Section 8.1 of the Credit
Agreement is hereby amended by adding “Requisite Lenders or” to the beginning of such clause. 
 (h) Section 5.1(a) and
Section 5.1(b) of the Credit Agreement are hereby amended and restated in their entirety as follows: 
 “(a) Monthly
Reports. As soon as available, and in any event within 30 days after the end of each month ending after the Closing Date, the consolidated balance sheet of Holdings and its Subsidiaries as at the end of such month and the related consolidated
statements of income, stockholders’ equity and cash flows of Holdings and its Subsidiaries for such month and for the period from the beginning of the then current Fiscal Year to the end of such month, all in reasonable detail, together with a
Financial Officer Certification with respect thereto; 
 (b) Quarterly Financial Statements. As soon as available, and in any event
within 45 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, the consolidated balance sheets of Holdings and its Subsidiaries as at the end of such Fiscal Quarter and the related consolidated (and with respect to
statements of income, (i) consolidating statements of Guarantor and non-Guarantor subsidiaries shall be provided and (ii) the components of total revenue generated by each of Holdings’ and its Subsidiaries’ products and software
programs shall be provided) statements of income, stockholders’ equity and cash flows of Holdings and its Subsidiaries for such Fiscal Quarter and for the period from the beginning of the then current Fiscal Year to the end of such Fiscal
Quarter, all in reasonable detail, together with a Financial Officer Certification and a Narrative Report with respect thereto;” 
  

 3 

 (i) Section 6.8(c) of the Credit Agreement is hereby amended and restated in its entirety as
follows: 
 Maximum Consolidated Capital Expenditures. Holdings shall not, and shall not permit its Subsidiaries to, make or incur
Consolidated Capital Expenditures, in any Fiscal Year indicated below, in an aggregate amount for Holdings and its Subsidiaries in excess of the corresponding amount set forth below opposite such Fiscal Year; provided, such amount for any
Fiscal Year shall be increased by an amount equal to 75% of the excess, if any, of such amount for the previous Fiscal Year and not any year before the previous Fiscal Year (as adjusted in accordance with this proviso) over the actual amount of
Consolidated Capital Expenditures for such previous Fiscal Year: 
  

				
	 Fiscal Year
	  	Consolidated Capital
Expenditures
	 2007
	  	$	3,000,000
	 2008
	  	$	4,000,000
	 2009
	  	$	4,000,000
	 2010
	  	$	4,000,000
	 2011
	  	$	4,500,000

 (j) The following new Section 6.15 and Section 6.16 shall be added to the end of
Section 6: 
 “Section 6.15 Copyrights. 
 No Credit Party shall nor shall any Credit Party permit any of its Subsidiaries, either itself or through any agent, employee, licensee, or designee, to file an application for the registration of any Copyright with
the United States Copyright Office or any similar office or agency without giving Collateral Agent prior written notice thereof. Promptly upon any such filing, and in any event within 10 days of such filing, each Credit Party shall execute and
deliver to Collateral Agent an After-Acquired Intellectual Property Security Agreement. 
 Section 6.16 Transfer of Assets.

 After December 31, 2008, Company shall not transfer to any other Person any right, title or interest in or to any of its assets,
properties, rights and interests.” 
 3. Conditions Precedent to the Effectiveness of this Amendment. The effectiveness of this
Amendment is subject to the fulfillment, to the reasonable satisfaction of Agents (or a written waiver by Agents) of each of the following conditions: 
 (a) Agents shall have received this Amendment, duly executed by the parties hereto, and the same shall be in full force and effect; 
 (b) Agents shall have received an amendment to the Intercreditor Agreement, duly executed by the parties thereto, and the same shall be in full force and effect; 
 (c) Agents shall have received that certain Resignation and Appointment of Agents Agreement, dated as of September 5, 2008, duly executed by the
parties thereto, and the same shall be in full force and effect; 
  

 4 

 (d) The representations and warranties herein and in the Credit Agreement and the other Credit Documents
shall be true and correct in all material respects on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date); 
 (e) No Default or Event of Default shall have occurred and be continuing on the date hereof, nor shall result from the consummation of the transactions
contemplated herein; and 
 (f) No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the
consummation of the transactions contemplated herein shall have been issued and remain in force by any Governmental Authority against Holdings, the LLC, Agents, or any Lender. 
 4. Covenants. The Credit Parties covenant and agree that they shall do each of the following, on or before the date applicable thereto (the
failure by the Credit Parties to so perform or cause to be performed any of the following within the time frame set forth below shall constitute an immediate Event of Default): 
 (a) within 15 days after the Second Amendment Closing Date, deliver to Collateral Agent evidence satisfactory to Collateral Agent that each policy of
insurance maintained by the Company (i) names Collateral Agent, for the benefit of Secured Parties, as an additional insured thereunder, and (ii) in the case of each casualty insurance policy, names Collateral Agent, for the benefit of
Secured Parties, as loss payee thereunder; 
 (b) by December 31, 2008, deliver to Agents evidence satisfactory to Agents that Holdings
has (i) contributed to LLC all right, title and interest in and to all of the assets, properties, rights and interests of Holdings (the “Acquired Assets”), and (ii) delegated to LLC any and all liabilities of Holdings of any
kind, character or description (whether known or unknown, accrued, absolute, contingent or otherwise) relating to or arising out of the ownership, possession, or use of the Acquired Assets; 
 (c) within 5 days after the consummation of the contributions and delegations described in subsection (b) of this Section, Holdings shall have
provided to Collateral Agent with respect to the Capital Stock of LLC, a pledge agreement and appropriate certificates and powers or financing statements, hypothecating all of the direct or beneficial ownership interest of Holdings in LLC and any
other Subsidiary of Holdings, in form and substance reasonably satisfactory to Collateral Agent; and 
 (d) immediately after the
consummation of the contributions and delegations described in subsection (b) of this Section, deliver to Agents evidence satisfactory to Agents that Holdings is a holding company and does not have any material liabilities (other than
liabilities arising under the Credit Documents), own any material assets (other than the Stock of LLC) or engage in any operations or business (other than the ownership of LLC and its Subsidiaries). 
 5. Lenders’ Consent. The Lenders hereby consent to amendments to the Credit Documents and authorize and direct the Administrative Agent and
the Collateral Agent to execute this Amendment and the other amendments to the Credit Documents in the forms attached hereto as Exhibit C. 
  

 5 

 6. Counterparts. This Amendment may be executed in any number of counterparts, and all such
counterparts taken together shall be deemed to constitute one and the same instrument. Signature pages may be detached from counterpart documents and reassembled to form duplicate executed originals. 
 7. Representation. Except as expressly set forth in the Disclosure Schedule in Exhibit B attached hereto, Holdings and LLC jointly and
severally represent and warrant that no Default or Event of Default under the terms of any other agreement exists as a result of Defaults and Events of Default described in Exhibit A attached hereto. 
 8. Ratification of Agreement. 
 (a) To
induce the Requisite Lenders to enter into this Amendment, Holdings, and LLC jointly and severally represent and warrant that after giving effect to this Amendment, no Default or Event of Default under the terms of the Credit Agreement or any
Collateral Document exists and, except as expressly set forth in the Disclosure Schedule in Exhibit B attached hereto, all representations and warranties contained in this Amendment and the Credit Agreement are true, correct and complete in
all material respects on and as of the date hereof except to the extent such representations and warranties specifically relate to an earlier date in which case they were true, correct and complete in all material respects on and as of such earlier
date. 
 (b) Except as expressly set forth in this Amendment, the terms, provisions and conditions of the Credit Agreement and each
Collateral Document are unchanged, and said agreements, as amended, shall remain in full force and effect and are hereby confirmed and ratified. 
 9. Governing Law; Jurisdiction; Venue; Waiver of Jury Trial. 
 THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY
JURISDICTION OTHER THAN THE STATE OF NEW YORK). ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT OR ANY OTHER DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK,
AND, BY EXECUTION AND DELIVERY OF THIS AMENDMENT, HOLDINGS, LLC, AND THEIR RESPECTIVE SUBSIDIARIES HEREBY IRREVOCABLY ACCEPT FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS. HOLDINGS, LLC, AND THEIR RESPECTIVE SUBSIDIARIES IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS BY REGISTERED OR CERTIFIED MAIL (RETURN RECEIPT REQUESTED) TO CT CORPORATION SYSTEM, 1633 BROADWAY, NEW YORK, NEW YORK 10019, 

  

 6 

 
ITS AGENT FOR SERVICE OF PROCESS, WHICH SHALL CONSTITUTE SUFFICIENT NOTICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE HOLDERS OR COLLATERAL AGENT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST HOLDINGS, LLC OR ANY OF THEIR RESPECTIVE SUBSIDIARIES IN ANY OTHER JURISDICTION. 
 EACH OF HOLDINGS, LLC, AND THEIR RESPECTIVE SUBSIDIARIES HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AMENDMENT OR ANY OTHER DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN THIS SECTION AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM
IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
 BECAUSE DISPUTES
ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY, THE PARTIES DESIRE THAT THEIR DISPUTES BE
RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER THIS AGREEMENT AND THE COLLATERAL
DOCUMENTS. 
 10. Acknowledgment and Consent by LLC and Holdings. Each of LLC and Holdings hereby acknowledges that it has read this
Amendment and consents to the terms hereof and further confirms and agrees that, notwithstanding the effectiveness of this Amendment, its obligations under the Credit Agreement shall not be impaired or affected and the Credit Agreement is, and shall
continue to be in full force and effect and is hereby confirmed and ratified in all respects. 
 [Signature Pages Follow] 
  

 7 

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

			
	SOLARWINDS, INC.
		
	By:	 	 /s/ Kevin B. Thompson

	Name:	 	Kevin B. Thompson
	Title:	 	Chief Operating Officer, Chief Financial Officer & Treasurer
	
	SOLARWINDS.NET, LLC
		
	By:	 	 /s/ Kevin B. Thompson

	Name:	 	Kevin B. Thompson
	Title:	 	Authorized Signatory

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	ADMINISTRATIVE AGENT:
	WELLS FARGO FOOTHILL, LLC
		
	By:	 	 /s/ Michael Ganann

	Name:	 	Michael Ganann
	Title:	 	Vice President

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	COLLATERAL AGENT:
	WELLS FARGO FOOTHILL, LLC
		
	By:	 	 /s/ Michael Ganann

	Name:	 	Michael Ganann
	Title:	 	Vice President

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	LEAD ARRANGER AND SYNDICATION AGENT:
	GOLDENTREE ASSET MANAGEMENT, L.P.
		
	By:	 	GoldenTree Asset Management, LP
		
	By:	 	 /s/ Karen Weber

	Name:	 	Karen Weber
	Title:	 	Director-Bank Debt

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	LENDERS:
	GoldenTree 2004 Trust
	By:	 	GoldenTree Asset Management, LP
		
	By:	 	 /s/ Karen Weber

	Name:	 	Karen Weber
	Title:	 	Director-Bank Debt

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	GoldenTree Capital Solutions Fund Financing
	By:	 	GoldenTree Asset Management, LP
		
	By:	 	 /s/ Karen Weber

	Name:	 	Karen Weber
	Title:	 	Director-Bank Debt
	
	GoldenTree Capital Solutions Offshore Fund Financing
	By:	 	GoldenTree Asset Management, LP
		
	By:	 	 /s/ Karen Weber

	Name:	 	Karen Weber
	Title:	 	Director-Bank Debt
	
	GoldenTree Capital Opportunities, LP
	By:	 	GoldenTree Asset Management, LP
		
	By:	 	 /s/ Karen Weber

	Name:	 	Karen Weber
	Title:	 	Director-Bank Debt
	
	GoldenTree Credit Opportunities Financing I, Ltd.
	By:	 	GoldenTree Asset Management, LP
		
	By:	 	 /s/ Karen Weber

	Name:	 	Karen Weber
	Title:	 	Director-Bank Debt

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	CIT Middle Market Loan Trust II
		
	By:	 	 /s/ David M. Harnisch

	Name:	 	David M. Harnisch
	Title:	 	Vice President, CIT Asset Management

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	Denali Capital CLO VII, Ltd.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Denali Capital CLO IV, Ltd.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Denali Capital CLO V, Ltd.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Denali Capital CLO VI, Ltd.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	SPV Capital Funding, L.L.C.
		
	By:	 	 /s/ Robert T. Ladd

	Name:	 	Robert T. Ladd
	Title:	 	Authorized Signatory

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

			
	Wells Fargo Foothill, LLC
		
	By:	 	 /s/ Michael Ganann

	Name:	 	Michael Ganann
	Title:	 	Vice President

  

 [SIGNATURE PAGE TO AMENDMENT NUMBER TWO TO CREDIT AGREEMENT] 

 Exhibit A 
 Existing Defaults 
 None. 

 Exhibit B 
 Disclosure Schedule 
 None. 

 Exhibit C 
 Form of Amendments to Credit Documents

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