Document:

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                                                               EXECUTION VERSION
                                                                   EXHIBIT 10.39

                            STOCK PURCHASE AGREEMENT

TransTechnology Corporation
700 Liberty Avenue
Union, New Jersey 07083
Attn: Joseph F. Spanier,
Vice President, Chief Financial Officer and Treasurer

Ladies & Gentlemen:

      The undersigned, Terrier Partners LP (collectively referred to herein as
the "Investor"), hereby confirm their agreement with TransTechnology Corporation
as follows:

1. This Stock Purchase Agreement (the "Stock Purchase Agreement") is made
as of February 15, 2006 between TransTechnology Corporation, a Delaware
corporation (the "Company"), and the Investor.

2. The Company has authorized the sale and issuance of up to 2,500,000 shares of
common stock of the Company, $0.01 par value per share (the "Common Stock"), to
certain investors in a private placement (the "Offering").

3. The Company and the Investor agree that the Investor will purchase from the
Company and the Company will issue and sell to the Investor 62,500 shares of
Common Stock (the "Shares") for a purchase price of $7.50 in cash per share (the
"Purchase Price"), or an aggregate purchase price of $468,750.00 (the "Aggregate
Purchase Price"), pursuant to the Terms and Conditions for Purchase of Shares
attached hereto as Annex I and incorporated herein by reference as if fully set
forth herein (the "Terms and Conditions"). This Stock Purchase Agreement,
together with the Terms and Conditions which are incorporated herein by
reference as if fully set forth herein, may hereinafter be referred to as the
"Agreement." Unless otherwise requested by the Investor, certificates
representing the Shares purchased by the Investor will be registered in the
Investor's name and address as set forth below.

4. The Investor represents that, except as set forth below, (a) it has had no
position, office or other material relationship within the past three years with
the Company or persons known to it to be affiliates of the Company, (b) neither
it, nor any group of which it is a member or to which it is related,
beneficially owns (including the right to acquire or vote) any securities of the
Company and (c) it has no direct or indirect affiliation or association with any
NASD member as of the date hereof. Exceptions:

                      Existing Share Ownership of Investor

   Terrier Partners LP................................................125,000

                            [Signature Page Follows]

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      Please confirm that the foregoing correctly sets forth the agreement
between us by signing in the space provided below for that purpose. By executing
this Agreement, the Investor acknowledges that the Company may use the
information in paragraph 4 above and the name and address information below in
preparation of the one or more registration statements (as defined in the
Registration Agreement). This Agreement may be executed in separate
counterparts, each of which shall be deemed to be an original and all of which
taken together shall constitute one and the same instrument.

AGREED AND ACCEPTED:                                    TERRIER PARTNERS LP

TRANSTECHNOLOGY CORPORATION                             By:  B DOGGY LLC,
                                                        its General Partner

                                                            By: Bobby Melnick,
                                                            its Managing Member

                                        By: /s/ Bobby Melnick
                                            -----------------------------------
/s/ Joseph F. Spanier
-----------------------------------
By:  Joseph F. Spanier                  Name: Bobby Melnick
     Vice President, Chief Financial          ---------------------------------
     Officer and Treasurer
                                        Tax ID No.:
                                                   ----------------------------
                                        State of Formation: New York
                                                            -------------------
                                        Principal Place of Business: New York
                                                                     ----------

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                                TABLE OF CONTENTS
<TABLE>
<S>      <C>                                                                                         <C>
1.       Authorization and Sale of the Shares.......................................................  2
2.       Agreement to Sell and Purchase the Shares; Subscription Date...............................  2
3.       Delivery of the Shares at Closing..........................................................  2
4.       Representations and Warranties of the Company..............................................  3
5.       Representations, Warranties and Covenants of the Investor..................................  8
6.       Covenants..................................................................................  9
7.       Survival of Company Representations, Warranties; Indemnification..........................  10
8.       Registration of the Shares; Right of First Offer..........................................  11
9.       Notices...................................................................................  12
10.      Changes...................................................................................  13
11.      Headings..................................................................................  13
12.      Severability..............................................................................  13
13.      Governing Law.............................................................................  13
14.      Counterparts..............................................................................  13
15.      Entire Agreement..........................................................................  13
16.      Confidential Information..................................................................  13
17.      No Third-Party Beneficiaries..............................................................  14
18.      Knowledge.................................................................................  14
</TABLE>

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                                                                         ANNEX I

                   TERMS AND CONDITIONS FOR PURCHASE OF SHARES

      1. Authorization and Sale of the Shares. Subject to these Terms and
Conditions, the Company has authorized the sale of up to 2,500,000 shares of
Common Stock to the Investor and Other Investors.

      2. Agreement to Sell and Purchase the Shares; Subscription Date.

            2.1. At the Closing (as defined in Section 3), the Company will sell
to the Investor, and the Investor will purchase from the Company, upon the terms
and conditions hereinafter set forth, the number of Shares, each as set forth in
Section 3 of the Stock Purchase Agreement to which these Terms and Conditions
are attached at the Purchase Price set forth thereon.

            2.2. The Company may enter into a substantially similar form of
Stock Purchase Agreement, including these Terms and Conditions, with other
investors (the "Other Investors") and expects to complete sales of shares of the
Company's common stock to the Other Investors.

            2.3. The obligations of the Other Investors under any similar
subscription agreement are several and not joint with the obligations of any
Other Investors and the Investor, and no Other Investor, including the Investor,
shall be responsible in any way for the performance of the obligations of any
Other Investors under any agreement. Nothing contained herein, and no action
taken by the Investor, shall be deemed to constitute a partnership, an
association, a joint venture or any other kind of entity between the Investor
and the Other Investors, or create a presumption that the Other Investors and
the Investor are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated hereby. The Investor shall be
entitled to independently protect and enforce its rights, including without
limitation the rights arising out of this Agreement (provided, that such rights
may be modified, amended or waived in accordance with Section 9 below), and it
shall not be necessary for any Other Investors to be joined as an additional
party in any proceeding for such purpose.

      3. Delivery of the Shares at Closing.

            3.1. The completion of the purchase and sale of the Shares hereunder
(the "Closing") shall occur on February 17, 2006 (the "Closing Date"), at the
offices of Hahn Loeser & Parks LLP. At the Closing, upon receipt by the Company
of the Aggregate Purchase Price, the transfer agent for the Company shall
deliver to the Investor one or more stock certificates representing the number
of Shares as set forth pursuant to Section 3 of the Stock Purchase Agreement,
each such certificate to be registered in the name of the Investor or, if so
indicated on the signature page of the Stock Purchase Agreement, in the name of
a nominee designated by the Investor.

            3.2. The Company's obligation to issue and deliver the Shares to the
Investor shall be subject to the following conditions, any one or more of which
may be waived by the Company: (a) receipt by the Company of a certified or
official bank check or wire transfer of immediately available funds in the full
amount of the Aggregate Purchase Price; (b) the accuracy of the representations
and warranties made by the Investor herein and the fulfillment of the Investor's
obligations hereunder prior to the Closing and (c) the absence of any order,
court injunction, law, statue, or rule prohibiting the transactions contemplated
hereby.

            3.3. The Investor's obligation to purchase the Shares shall be
subject to the following conditions, any one or more of which may be waived by
the Investor: (a) Investor and the Company shall have executed this Agreement
and the Registration Rights Agreement, (b) the representations and warranties of
the Company set forth herein shall be true and correct as of the Closing Date in
all material respects (except for representations and warranties that speak as
of a specific date, which representations and warranties shall be true and
correct as of such date), (c) the Company shall have complied in all material
respects with all pre-Closing covenants of the Company hereunder and (d) the
Investor shall have received such documents as the Investor shall reasonably
have requested, including, an opinion of the Company's counsel, in substantially
the form attached hereto as Exhibit 1.

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            3.4. Legend; Restrictions on Transfer. The certificate or
certificates for the Shares (and any securities issued in respect of or exchange
for the Shares) shall be subject to a legend or legends restricting transfer
under the Securities Act and referring to restrictions on transfer herein, such
legend to be substantially as follows:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF
COUNSEL, IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES,
SUCH OFFER, SALE OR TRANSFER OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

The Company and the Investor acknowledge and agree that the Investor may, as
permitted by law, from time to time pledge pursuant to a bona fide margin
agreement or grant a security interest in some or all of the Shares and, if
required under the terms of such arrangement, Investor may, as permitted by law,
transfer pledged or secured Shares to the pledgees or secured parties. So long
as Investor is not an affiliate of the Company, such a pledge or transfer would
not be subject to approval or consent of the Company, provided that, upon the
request of the Company, a legal opinion of legal counsel to the pledgee, secured
party or pledgor shall be obtained. At the Investor's expense, so long as the
Shares are subject to the legend required by this Section 3.4, the Company will
use its best efforts to execute and deliver such reasonable documentation as a
pledgee or secured party of Shares may reasonably request in connection with a
pledge or transfer of the Shares.

      4. Representations and Warranties of the Company. The Company hereby
represents and warrants to the Investor, as follows:

            4.1. Organization. The Company and each of its Subsidiaries (as
defined in Rule 405 under the Securities Act) is duly organized and validly
existing in good standing under the laws of the jurisdiction of its
organization. Each of the Company and its Subsidiaries has full power and
authority to own, lease, operate and occupy its properties and assets and to
conduct its business as presently conducted and as described in the documents
filed by the Company under the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder (the "Exchange Act"),
including, without limitation, its most recent report on Form 10-K (the
"Exchange Act Documents") and is registered or qualified to do business and in
good standing in each jurisdiction in which the nature of the business conducted
by it or the location of the properties owned or leased by it requires such
qualification and where the failure to be so qualified would have a material
adverse effect upon the condition (financial or otherwise), earnings, cash flow,
business or business prospects, properties, assets, liabilities or operations of
the Company and its Subsidiaries, considered as one enterprise (a "Material
Adverse Effect"), and no proceeding has been instituted in any such
jurisdiction, revoking, limiting or curtailing, or seeking to revoke, limit or
curtail, such power and authority or qualification.

            4.2. Due Authorization and Valid Issuance. The Company has all
requisite power and authority to execute, deliver and perform its obligations
under this Agreement and the related Registration Rights Agreement attached as
Exhibit 2 hereto (collectively the "Agreements"), and the Agreements have been
duly authorized and validly executed and delivered by the Company and constitute
legal, valid and binding agreements of the Company enforceable against the
Company in accordance with their terms, except as rights to indemnity and
contribution may be limited by state or federal securities laws or the public
policy underlying such laws, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors' and contracting parties' rights generally and except as
enforceability may be subject to general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

            4.3. Non-Contravention. The execution and delivery of the
Agreements, the issuance and sale of the Shares under this Agreement, the
fulfillment of the terms of the Agreements and the consummation of the
transactions contemplated hereby and thereby will not (A) conflict with or
constitute a violation of, or default (with the passage of time or otherwise)
under, (i) any material bond, debenture, note or other evidence of indebtedness,
lease, contract, indenture, mortgage, deed of trust, loan agreement, joint
venture or other agreement or instrument to which the Company or any Subsidiary
is a party or by which it or any of its Subsidiaries or their respective
properties are bound, (ii) the charter, by-laws or other organizational
documents of the Company or any Subsidiary, or (iii) any law, administrative
regulation, ordinance or order of any court or governmental agency, arbitration
panel or authority applicable to the Company or any Subsidiary or their
respective assets or properties, except in the case of clauses (i) and (iii) for
any such conflicts, violations or defaults which are not reasonably likely to
have a Material Adverse Effect, or (B) result in the creation or imposition of
any lien, encumbrance, claim, security interest or restriction whatsoever upon
any of the material properties or assets of the Company or any Subsidiary or an
acceleration of indebtedness pursuant to any obligation, agreement or condition
contained in any bond, debenture, note or any other evidence of indebtedness or
any indenture,

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mortgage, deed of trust or any other material agreement or instrument to which
the Company or any Subsidiary is a party or by which any of them is bound or to
which any of the material property or assets of the Company or any Subsidiary is
subject. No consent, approval, authorization or other order of, or registration,
qualification or filing with, any regulatory body, administrative agency, or
other governmental body in the United States or any foreign jurisdiction or any
other person is required for the execution and delivery of the Agreements and
the valid issuance and sale of the Shares pursuant to the Agreements, other than
such as have been made or obtained, and except for any post-closing securities
filings or notifications required to be made under federal or state securities
laws.

            4.4. Capitalization. The equity capitalization of the Company is as
set forth in the most recent applicable Exchange Act Documents, increased as set
forth in the next sentence. The Company has not issued any capital stock since
that date other than pursuant to (i) employee benefit plans disclosed in the
Exchange Act Documents, or (ii) outstanding warrants, options or other
securities disclosed in the Exchange Act Documents. The Shares to be sold
pursuant to this Agreement have been duly authorized, and when issued and paid
for in accordance with the terms of this Agreement, will be duly and validly
issued, fully paid and nonassessable and free of any preemptive rights for any
other securityholder of the Company. The outstanding shares of capital stock of
the Company have been duly and validly issued and are fully paid and
nonassessable, have been issued in compliance with all federal and state
securities laws, and were not issued in violation of any preemptive rights or
similar rights to subscribe for or purchase securities. Except as set forth in
or contemplated by the Exchange Act Documents, there are no outstanding rights
(including, without limitation, preemptive rights), warrants or options to
acquire, or instruments convertible into or exchangeable for, any shares of
capital stock or other equity interest in the Company or any Subsidiary, or any
contract, commitment, agreement, understanding or arrangement of any kind to
which the Company is a party or of which the Company has knowledge and relating
to the issuance or sale of any capital stock of the Company or any Subsidiary,
any such convertible or exchangeable securities or any such rights, warrants or
options. Without limiting the foregoing, no preemptive right, co-sale right,
right of first refusal, registration right, or other similar right exists with
respect to the Shares or the issuance and sale thereof. No further approval or
authorization of any stockholder, the Board of Directors or others is required
for the issuance and sale of the Shares. The Company owns the entire equity
interest in each of its Subsidiaries, free and clear of any pledge, lien,
security interest, encumbrance, claim or equitable interest, other than as
described in the Exchange Act Documents. There are no stockholders agreements,
voting agreements or other similar agreements with respect to the Common Stock
to which the Company is a party or, to the knowledge of the Company between or
among any of the Company's stockholders.

            4.5. Legal Proceedings. There is no material legal or governmental
proceeding pending or, to the knowledge of the Company, threatened to which the
Company or any Subsidiary or any of their officers or directors is or may be a
party or of which the business, assets or property of the Company or any
Subsidiary is subject that is not disclosed in the Exchange Act Documents. There
are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the accountants and lawyers formerly or
presently employed by the Company and the Company is current with respect to any
fees owed to its accountants and lawyers.

            4.6. No Violations. Neither the Company nor any Subsidiary is (i) in
violation of its charter, bylaws, or other organizational document, or (ii) in
violation of any law, administrative regulation, ordinance or order of any court
or governmental agency, arbitration panel or authority applicable to the Company
or any Subsidiary, except for such violations, individually or in the aggregate,
which would not be material to the Company and its Subsidiaries or (iii) is in
default (and there exists no condition which, with the passage of time or
otherwise, would constitute a default) in any material respect in the
performance of any bond, debenture, note or any other evidence of indebtedness
in any indenture, mortgage, deed of trust or any other material agreement or
instrument to which the Company or any Subsidiary is a party or by which the
Company or any Subsidiary is bound, except for such default which would not be
material to the Company and its Subsidiaries.

            4.7. Governmental Permits, Etc. Each of the Company and its
Subsidiaries has and is in material compliance with all necessary franchises,
licenses, certificates, permits and other authorizations from any foreign,
federal, state or local government or governmental agency, department, or body
that are currently necessary for the operation of the business of the Company
and its Subsidiaries as currently conducted and as described in the Exchange Act
Documents except where the failure to currently possess such could not
reasonably be expected to have a Material Adverse Effect. To the knowledge of
the Company, all necessary franchises, licenses, certificates, permits and other
authorizations are in full force and effect, and no suspension or cancellation
of the same is threatened or reasonably likely.

            4.8. Intellectual Property. Except as disclosed in the Exchange Act
Documents (i) each of the Company and its Subsidiaries owns, or has the valid
right to use, without limitation, all United States and foreign patents, patent
rights, patent applications, trademarks, trademark applications, service marks,
copyrights, copyright registrations, licenses, inventions, software,

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trade secrets, trade names; know-how and other similar rights (collectively,
"Intellectual Property") necessary for the conduct of its business as now
conducted except where the failure to currently own or have the right to use
would not be material to the Company and its Subsidiaries and (ii) to the
knowledge of the Company, neither the Company nor any of its Subsidiaries is
infringing, or has received any notice of, or has any knowledge of, any asserted
infringement by the Company or any of its Subsidiaries of, any rights of a third
party with respect to any Intellectual Property.

            4.9. Financial Statements.

                  (a) The financial statements of the Company and the related
notes and management's discussion thereof contained in the Exchange Act
Documents present fairly, in accordance with generally accepted accounting
principles, the financial position of the Company and its Subsidiaries as of the
dates indicated, and the results of its operations and cash flows for the
periods therein specified consistent with the books and records of the Company
and its Subsidiaries except that the unaudited interim financial statements were
or are subject to normal and recurring year-end adjustments which are not
material in amount. Such financial statements (including the related notes) have
been prepared in accordance with generally accepted accounting principles
applied on a consistent basis throughout the periods therein specified, except
as may be disclosed in the notes to such financial statements, or in the case of
unaudited statements, as may be permitted by the Securities and Exchange
Commission (the "SEC") on Form 10-Q under the Exchange Act and except as
disclosed in the Exchange Act Documents and complied in all material respects
with all applicable accounting requirements and with the published rules and
regulations of the SEC with respect thereto. The other financial information
contained in the Exchange Act Documents has been prepared on a basis consistent
with the financial statements of the Company.

                  (b) (i) The Company's assets do not constitute unreasonably
small capital to carry on its business for the current fiscal year as now
conducted taking into account the current and projected capital requirements of
the business conducted by the Company and projected capital availability; and
(ii) the current cash flow of the Company, together with the proceeds the
Company would receive upon liquidation of its assets, after taking into account
all anticipated uses of such amounts, would be sufficient to pay all such
liabilities and obligations when such is required to be paid. The Company does
not intend to incur liabilities and other obligations beyond its ability to pay
such as they mature or are required to be paid. The Company has no knowledge of
any facts or circumstances which lead it to believe that it will be required to
file for reorganization or liquidation under the bankruptcy or reorganization
laws of any jurisdiction, and has no present intention to so file.

                  (c) Except as set forth in any Exchange Act Documents, there
are no obligations of the Company to officers, directors, stockholders or
employees of the Company other than (i) for payment of salary for services
rendered and for bonus payments; (ii) reimbursements for reasonable expenses
incurred on behalf of the Company; (iii) for other standard employee benefits
made generally available to all employees (including stock option agreements
outstanding under any stock option plan approved by the Board of Directors); and
(iv) obligations listed in the Company's financial statements. Except as
described above or in any Exchange Act Documents, none of the officers,
directors or, to the knowledge of the Company, key employees or stockholders of
the Company or any members of their immediate families, are indebted to the
Company, individually or in the aggregate, in excess of $60,000 or have any
direct or indirect ownership interest in any firm or corporation with which the
Company is affiliated or with which the Company has a business relationship, or
any firm or corporation which competes with the Company, other than passive
investments in publicly traded companies (representing less than one percent
(1%) of such company) which may compete with the Company. Except as described
above, no officer, director or stockholder, or any member of their immediate
families, is, directly or indirectly, interested in any material contract with
the Company and no agreements, understandings or transactions are contemplated
between the Company and any such person. Except as set forth in any Exchange Act
Documents, the Company is not a guarantor or indemnitor of any indebtedness of
any other person, firm or corporation.

            4.10. No Material Adverse Change. Except as disclosed in the
Exchange Act Documents, since December 25, 2005, (A) there has not been (i) any
Material Adverse Effect, (ii) any dividend or distribution of any kind declared,
paid or made on the capital stock of the Company or any of its Subsidiaries, or
(iii) any loss or damage (whether or not insured) to the physical property of
the Company or any of its Subsidiaries which has been sustained which has a
Material Adverse Effect, and (B) the Company and its Subsidiaries have operated
the business in the ordinary course, consistent with past practice.

            4.11. [Intentionally omitted]

            4.12. [Intentionally omitted]

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            4.13. [Intentionally omitted]

            4.14. [Intentionally omitted]

            4.15. [Intentionally omitted]

            4.16. [Intentionally omitted]

            4.17. [Intentionally omitted]

            4.18. Disclosure. The representations and warranties of the Company
contained in this Section 4 as of the date hereof and as of the Closing Date and
all material information provided to the Investor by or on behalf of the
Company, taken as a whole, do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they
were made, not misleading.

            4.19. Reporting Status. (a) Except as noted in the Exchange Act
Documents, the Company has filed in a timely manner all documents that the
Company was required to file under the Exchange Act or the Securities Act during
the two (2) years preceding the date of this Agreement, including all such
documents filed after the date hereof and prior to the Closing. None of the
Company's Subsidiaries is required to file any form, report, schedule, statement
or other document with the SEC. The Company is not currently eligible to use
Form S-3 under the Securities Act to register the Shares to be offered for the
account of the Investor, but is eligible to effectuate such registration on Form
S-1 under the Securities Act. The following documents complied in all material
respects with the SEC's requirements as of their respective filing dates, and
the information contained therein as of the date thereof did not contain an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein in light of the
circumstances under which they were made not misleading:

                        (i) Annual Report on Form 10-K for the year ended March
31, 2005, Quarterly Reports on Form 10-Q for the quarters ended December 26,
2004; June 26, 2005; September 25, 2005 and December 25, 2005; Current Reports
on Form 8-K filed on January 14, 2005; January 18, 2005; January 28, 2005;
February 15, 2005; March 15, 2005; June 9, 2005; June 27, 2005; July 19, 2005;
August 19, 2005; September 12, 2005; October 20, 2005; December 23, 2005; and
December 28, 2005; and the Definitive Proxy Statement filed September 14, 2005
with respect to the 2005 annual meeting of the Company's stockholders; and

                        (ii) all other documents, if any, filed by the Company
with the SEC during the two (2) year period preceding the date of this Agreement
pursuant to the reporting requirements of the Exchange Act.

            4.20. Exchange Act Reporting; Compliance. The Company's Common Stock
is registered pursuant to Section 12(g) of the Exchange Act, and the Company has
taken no action designed to, or likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act, nor has the Company
received any notification that the SEC or the National Association of Securities
Dealers, Inc. ("NASD") is contemplating terminating such registration. The
Company shall comply with all requirements of the NASD and the SEC with respect
to the issuance of the Shares.

            4.21. No Manipulation of Stock. The Company has not taken and will
not take any action designed to or that might reasonably be expected to cause or
result in stabilization or manipulation of the price of the Common Stock.

            4.22. Company not an "Investment Company." The Company has been
advised of the rules and requirements under the Investment Company Act of 1940,
as amended (the "Investment Company Act"). The Company is not, and immediately
after receipt of payment for the Shares will not be, an "investment company" or
an entity "controlled" by an "investment company" within the meaning of the
Investment Company Act and shall conduct its business in a manner so that it
will not become subject to the Investment Company Act.

            4.23. Foreign Corrupt Practices. Neither the Company, nor to the
best knowledge of the Company, any agent or other person acting on behalf of the
Company, has (i) directly or indirectly, used any corrupt funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to
foreign or domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any foreign or
domestic political parties or campaigns from corporate funds, (iii) failed to
disclose fully any contribution made by the Company (or made by any person
acting on its behalf of which the

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Company is aware) which is in violation of law, or (iv) violated in any material
respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

            4.24. Accountants. To the knowledge of the Company, Deloitte &
Touche LLP, who the Company expects will consent to the incorporation by
reference of its report dated August 12, 2005 with respect to the consolidated
financial statements of the Company included in the Company's Annual Report on
Form 10-K for the year ended March 31, 2005 into any Registration Statement (as
defined in the Registration Rights Agreement) and the prospectus which forms a
part thereof contemplated by the Registration Rights Agreement, are and, during
the periods covered by their report, were independent accountants as required by
the Securities Act and the rules and regulations promulgated thereunder.

            4.25. Contracts. The contracts described in the Exchange Act
Documents that are material to the Company are in full force and effect on the
date hereof, and neither the Company nor, to the knowledge of the Company, any
other party to such contracts is in breach of or default under any of such
contracts which would have a Material Adverse Effect. The Company has filed with
the SEC all contracts and agreements required to be filed by the Exchange Act
and Securities Act.

            4.26. Taxes. The Company has filed all necessary federal, state and
foreign income and franchise tax returns when due (or obtained appropriate
extensions for filing) and has paid or accrued all taxes shown as due thereon,
except for those contested in good faith and adequately disclosed and provided
for in the financial statements of the Company in accordance with GAAP and for
which the Company has provided adequate reserves (in the good faith judgment of
the management of the Company). The Company has (in the good faith judgment of
the management of the Company) adequately reserved for possible adjustments due
to open tax audits or assessments.

            4.27. Transfer Taxes. On the Closing Date, all stock transfer or
other taxes (other than income taxes) which are required to be paid in
connection with the sale and transfer of the Shares to be sold to the Investor
hereunder will be, or will have been, fully paid or provided for by the Company
and all laws imposing such taxes will be or will have been fully complied with.

            4.28. Private Offering. Assuming the correctness of the
representations and warranties of the Investor set forth in Section 5 hereof,
the offer and sale of Shares are exempt from registration under the Securities
Act. Except for information provided to those Investors who have entered into a
separate confidentiality agreement with the Company with respect thereto, the
Company has not distributed and will not distribute prior to the Closing Date
any offering material in connection with this Offering and sale of the Shares
other than the documents of which this Agreement is a part or the Exchange Act
Documents. The Company has not in the past nor will it hereafter take any action
independent of the placement agent to sell, offer for sale or solicit offers to
buy any securities of the Company which would bring the offer, issuance or sale
of the Shares within the provisions of Section 5 of the Securities Act, unless
such offer, issuance or sale was or shall be within the exemptions of Section 4
of the Securities Act. Neither the Company nor any person acting on behalf of
the Company has offered or sold any of the Shares by any form of general
solicitation or general advertising. The Company has offered the Shares for sale
only to the Investor and certain other "accredited investors" within the meaning
of Rule 501 under the Securities Act.

            4.29. [Intentionally omitted]

            4.30. [Intentionally omitted]

4.31. Controls and Procedures. The Company is in material compliance with all
provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of
the Closing Date. The Company has established and maintains an effective system
of internal control over financial reporting (as such term is defined in the
Exchange Act ) regarding the reliability of financial reporting and preparation
of financial statements for external purposes in accordance with GAAP and
includes policies and procedures that (i) pertain to maintenance of records that
in reasonable detail accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (ii) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial
statements in accordance with GAAP, and that receipts and expenditures of the
Company are being made only in accordance with authorizations of management and
directors of the Company; and (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition
of the Company's assets that could have a material impact on the financial
statements. The Company has established and maintains disclosure controls and
procedures (as defined in Exchange Act) that are effective in ensuring that
information required to be disclosed by the Company in the reports that it files
or submits under the Exchange Act is recorded, processed, summarized and
reported, within the time periods specified in the SEC's rules and forms,
including, without limitation, controls and procedures designed to ensure that
information required to be

                                       7

<PAGE>
disclosed by the Company in the reports that it files or submits under the
Exchange Act is accumulated and communicated to the Company's management,
including its principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions regarding
required disclosure. The Company's certifying officers have evaluated the
effectiveness of the Company's disclosure controls and procedures and presented
in the applicable Exchange Act Documents their conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
periods covered by such Exchange Act Documents based on such evaluation. Since
the last such evaluation date, there has been no change in the Company's
internal control over financial reporting that has materially affected, or is
reasonably likely to materially affect, the Company's internal control over
financial reporting, and no significant deficiencies or material weaknesses in
internal controls over financial reporting, or other factors that could
significantly affect the Company's internal control over financial reporting,
have been identified.

            4.32. Section 203 Exemption. The Board of Directors has adopted this
Agreement and the Registration Rights Agreement and the transactions
contemplated hereby and thereby in such manner as is sufficient to render the
restrictions of Section 203 of the Delaware General Corporations Law
inapplicable to the Agreements and all transactions contemplated hereby and
thereby.

            4.33. No Registration Rights. No person has the right to require the
Company or any Subsidiary to register any securities for sale under the
Securities Act by reason of the filing of any Registration Statement, as defined
in the Registration Rights Agreement, with the SEC for the issuance and sale of
the Shares.

      5. Representations, Warranties and Covenants of the Investor.

            5.1. The Investor represents and warrants to, and covenants with,
the Company that: (i) the Investor is an "accredited investor" as defined in
Regulation D under the Securities Act and the Investor is also knowledgeable,
sophisticated and experienced in making, and is qualified to make decisions with
respect to investments in shares presenting an investment decision like that
involved in the purchase of the Shares, including investments in securities
issued by the Company and investments in comparable companies, and has
requested, received, reviewed and considered all information it deemed relevant
in making an informed decision to purchase the Shares; (ii) the Investor is
acquiring the number of Shares, each as set forth in Section 3 of the Stock
Purchase Agreement in the ordinary course of its business and for its own
account for investment only and with no present intention of distributing any of
such Shares, or any arrangement or understanding with any other persons
regarding the distribution of such Shares; (iii) the Investor will not, directly
or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
any offers to buy,) any of the Shares except in compliance with the Securities
Act, applicable state securities laws and the respective rules and regulations
promulgated thereunder; and (iv) the Investor has, in connection with its
decision to purchase the number of Shares as set forth in Section 3 of the Stock
Purchase Agreement, relied upon the Exchange Act Documents and the
representations and warranties of the Company contained herein. The Investor
understands that its acquisition of the Shares has not been registered under the
Securities Act or registered or qualified under any state securities law in
reliance on specific exemptions therefrom, which exemptions may depend upon,
among other things, the bona fide nature of the Investor's investment intent as
expressed herein. Subject to compliance with the Securities Act, applicable
securities laws and the respective rules and regulations promulgated thereunder,
nothing contained herein shall be deemed a representation or warranty by such
Investor to hold the Shares for any period of time.

            5.2. The Investor acknowledges, represents and agrees that no action
has been or will be taken in any jurisdiction outside the United States by the
Company that would permit an offering of the Shares, or possession or
distribution of offering materials in connection with the issue of the Shares,
in any jurisdiction outside the United States where legal action by the Company
for that purpose is required. Each Investor outside the United States will
comply with all applicable laws and regulations in each foreign jurisdiction in
which it purchases, offers, sells or delivers Shares or has in its possession or
distributes any offering material, in all cases at its own expense.

            5.3. The Investor hereby covenants with the Company not to make any
sale of the Shares without complying with the provisions of this Agreement and
the Registration Rights Agreement and without complying with any prospectus
delivery requirement then applicable to it, and the Investor acknowledges that
the certificates evidencing the Shares will be imprinted with a legend that
prohibits their transfer except in accordance therewith.

            5.4. The Investor further represents and warrants to, and covenants
with, the Company that (i) the Investor has full right, power, authority and
capacity to enter into this Agreement and to consummate the transactions
contemplated hereby and has taken all necessary action to authorize the
execution, delivery and performance of this Agreement, and (ii) this Agreement

                                       8

<PAGE>

constitutes a valid and binding obligation of the Investor enforceable against
the Investor in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors' and contracting parties' rights generally and
except as enforceability may be subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law) and except as the indemnification agreements of the Investor
herein may be legally unenforceable.

            5.5. Neither the Investor nor any person acting on its behalf or at
its direction has engaged in any purchase or sale of Common Stock (including
without limitation any short sale), pledge, transfer, establishment of an open
"put equivalent position" within the meaning of Rule 16a-1(h) under the Exchange
Act) during the thirty (30) trading days immediately preceding the date of this
Agreement or otherwise has engaged or will engage, directly or indirectly, in
any action designed to, or which might be reasonably expected to, cause or
result in any manipulation of the price of the Common Stock. The Investor will
not use any of the restricted Shares acquired pursuant to this Agreement to
cover any short position in the Common Stock of the Company if doing so would be
in violation of applicable securities laws and otherwise will comply with
federal securities laws in the holding and sale of the Shares.

            5.6. The Investor has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or appropriate in
connection with its purchase of Shares.

            5.7. The Company acknowledges and agrees that Investor does not make
or has not made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in
Sections 5, 6 and 16(a) of this Agreement, or in the Confidentiality Agreement
(as defined below).

      6. Covenants.

            6.1. [Intentionally omitted]

            6.2. [Intentionally omitted]

            6.3. [Intentionally omitted]

            6.4. Preservation of NOLs. The Company and the Investor have
discussed, and the Investor is aware, of, the importance to the Company of
preserving the benefits of its substantial net operating loss carry forwards
("NOLs") under the requirements of the Code and Treasury Regulations. In
furtherance of this objective, and notwithstanding anything in this Agreement to
the contrary, The Company will notify Investor and the Other Investors in
writing when, in consultation its independent auditors, it has determined that
additional acquisitions of its equity securities by any of the Investor or Other
Investors may subject the utilization of its NOLs to the Section 382 Limitation
(as defined under the Code). Investor covenants, upon receipt of such notice and
delivery of similar notices to the Other Investors, that neither it nor its
affiliates will acquire any additional Common Stock of the Company until such
time as Investor requests and receives written approval from the Company, which
approval shall not be unreasonably withheld and shall be provided solely on the
basis of whether the Company and its independent auditors have determined that
such proposed acquisition by Investor, upon consideration of the relevant facts
and circumstances known to the Company, would more likely than not subject the
Company to the Section 382 Limitation with respect to the utilization of its
NOLs. The Company and the Investor hereby further agree, following the Closing,
to continue to explore the feasibility of, and to use good faith commercial
efforts to implement, if determined by the Board of Directors to be in the best
interest of the Company, additional mechanisms to ensure protection of the
Company's NOLs in order to avoid the imposition of the Section 382 Limitation on
the Company, including without limitation the possible adoption at the next
annual meeting of shareholders of a charter amendment to impose restrictions
upon the transfer of the Common Stock of the Company. The Company agrees that
the Stock Purchase Agreements entered into with Other Investors will contain
provisions no less restrictive than the restrictions imposed upon the Investor
under this Section 6.4.

            6.5. [Intentionally omitted]

            6.6. Conduct of Business. During the period from the date of this
Agreement to the Closing, the Company will continue to operate its business in
the ordinary course.

                                       9

<PAGE>

            6.7. Use of Proceeds. The Aggregate Purchase Price, together with
all other funds received pursuant to the Offering, net of reasonable and
customary offering fees and expenses, will be used to pay down existing
indebtedness, in the order and amounts set forth on Schedule 6.6 hereof.

            6.8. [Intentionally omitted]

            6.9. [Intentionally omitted]

      7. Survival of Company Representations, Warranties; Indemnification.

            7.1. Survival of Representations and Warranties. Notwithstanding any
investigation made by any party to this Agreement, all representations and
warranties made by the Company shall survive for two (2) years following the
execution of this Agreement.

            7.2. Indemnification.

                  (a) The Company agrees to indemnify and hold harmless the
Investor and each of its partners, officers, managers, employees and
representatives (each an "Investor Indemnitee") from and against (x) any losses,
claims, demands, penalties, fines, actions, damages, costs, expenses (including,
without limitation, reasonable legal fees and expenses incurred by the Investor
Indemnitee in investigating or defending any such proceeding) or liabilities
(all of the foregoing, including associated costs and expenses, a "Loss")
insofar as such Loss arises out of, or is based upon any breach of the
representations or warranties of the Company contained herein or failure to
comply with the covenants and agreements of the Company contained herein, and
(y) any finally judicially determined material diminution in value of the
Investor's Shares as measured against the Purchase Price (a "Diminution")
insofar as such Diminution arises out of, or is based upon any breach of the
representations or warranties of the Company contained herein, provided,
however, that the Company shall not be liable in any such case to the extent
that such Diminution or Loss arises out of, or is based upon, the bad faith,
gross negligence or willful misconduct of the Investor in connection therewith,
provided, further, that the Company shall not have any obligation to indemnify
the Investor from and against any Loss or Diminution until the Investor has
suffered, individually or in the aggregate, any Loss or Diminution in excess of
$28,125.00 (such amount, the "Indemnification Threshold") and then only to the
extent the amount of such Loss or Diminution exceeds the Indemnification
Threshold. Notwithstanding anything to the contrary herein, in no event shall
the Company be obligated to indemnify the Investor Indemnitees pursuant to this
Section 3(a) for an aggregate amount in excess of the Aggregate Purchase Price.
The Company shall reimburse each of the Investor Indemnitee for the
indemnifiable amounts provided for herein on demand as such expenses are
incurred provided that, to the extent that it is finally judicially determined
that an Investor Indemnitee was not entitled to any such reimbursement or any
part of such reimbursement made by the Company, such Investor Indemnitee shall
promptly pay such amount to the Company, together with interest thereon, at the
prime rate announced by the Wall Street Journal, from time to time.

                  (b) Promptly after receipt by the Investor Indemnitee of a
notice of a claim or the beginning of any action in respect of which indemnity
is to be sought against the Company pursuant to this Section 7.2, such Investor
Indemnitee shall notify the Company in writing of such claim or of the
commencement of such action, but the omission to so notify the Company will not
relieve it from any liability which it may have to the Investor Indemnitee under
this Section 7.2 (except to the extent that such omission materially and
adversely affects the Company's ability to defend such action) or from any
liability otherwise than under this Section 7.2. Subject to the provisions
hereinafter stated, in case any such action shall be brought against an Investor
Indemnitee, the Company shall be entitled to participate therein, and, to the
extent that it shall elect by written notice delivered to the Investor
Indemnitee promptly after receiving the aforesaid notice from such Investor
Indemnitee, shall be entitled to assume the defense thereof, with counsel
reasonably satisfactory to such Investor Indemnitee. After notice from the
Company to such Investor Indemnitee of its election to assume the defense
thereof, the Company shall not be liable to such Investor Indemnitee for any
legal expenses subsequently incurred by such Investor Indemnitee in connection
with the defense thereof, provided, however, that if there exists or shall exist
a conflict of interest that would make it inappropriate, in the opinion of
counsel to the Investor Indemnitee, for the same counsel to represent both the
Investor Indemnitee and the Company or any affiliate or associate thereof, the
Investor Indemnitee shall be entitled to retain its own counsel at the expense
of the Company; provided, however, that the Company shall not be responsible for
the fees and expenses of more than one separate counsel (together with
appropriate local counsel) for all indemnified parties. In no event shall the
Company be liable in respect of any amounts paid in settlement of any action
unless the Company shall have approved the terms of such settlement; provided
that such consent shall not be unreasonably withheld, conditioned or delayed.
The Company shall not, without the prior written consent of the Investor
Indemnitee, effect any settlement of any pending or threatened proceeding in
respect of which the Investor Indemnitee is or could have been a party and

                                       10

<PAGE>

indemnification could have been sought hereunder by such Investor Indemnitee,
unless such settlement includes an unconditional release of such Investor
Indemnitee from all liability on claims that are the subject matter of such
proceeding.

                  (c) For avoidance of confusion, no control person, director,
or officer of the Company is an indemnifying person for purposes of subsection
(a) hereof.

            7.3. Except for any claim for fraud or intentional
misrepresentation, the indemnification provisions provided pursuant to this
Section 7 shall be the sole remedy of the Investor, provided that, nothing in
this Agreement shall prevent the Investor from seeking to enforce any agreements
or covenants set forth herein (including this indemnification) in any court of
law.

      8. Registration of the Shares; Right of First Offer.

            8.1. Registration Rights Agreement. The Company and the Investor
shall, at the Closing, enter into a Registration Rights Agreement (the
"Registration Rights Agreement"), in the form attached hereto as Exhibit 2,
governing certain rights and obligations relating to the Shares.

            8.2. Right of First Offer.

                  (a) Right of First Offer. In the event that the Company shall
issue, sell or exchange, agree or obligate itself to issue, sell or exchange, or
reserve or set aside for issuance, sale or exchange, in a private sale
transaction not involving a public offering, any (i) shares of Common Stock,
(ii) any other equity security of the Company, including without limitation,
preferred shares, (iii) any debt security of the Company which by its terms is
convertible into or exchangeable for any equity security of the Company, (iv)
any security of the Company that is a combination of debt and equity, or (v) any
option, warrant or other right to subscribe for, purchase or otherwise acquire
any such equity security or any such debt security of the Company, in each such
case the Company shall first offer to sell such securities (the "Offered
Securities") to the Investor as follows: The Investor shall have the right to
purchase that portion of the Offered Securities determined as follows: the
amount of the Offered Securities shall be multiplied by a fraction, (i) the
numerator of which is the number of shares of Common Stock acquired hereunder
and then held by the Investor and (ii) the denominator of which is the total
number of shares of issued and outstanding Common Stock on a fully diluted
basis, of the Company (the "Investor's Pro Rata Portion"), at a price and on
such other terms as shall have been specified by the Company in writing with
respect to such private sale and delivered to the Investor (the "Offer"), which
Offer by its terms shall remain open and irrevocable for a period of seven (7)
days from receipt of the Offer (the "Offer Acceptance Period").

                  (b) Notice of Acceptance. Notice of the Investor's intention
to accept, in whole or in part, any Offer made shall be evidenced by a writing
signed by the Investor and delivered to the Company prior to the end of the
7-day period of such Offer, setting forth such of the Investor's Pro Rata
Portion as the Investor elects to purchase (the "Notice of Acceptance").

                  (c) Conditions to Acceptances and Purchase.

                        (i) Permitted Sales of Refused Securities. The Company
shall have one hundred eighty (180) days from the expiration of the Offer
Acceptance Period to close the sale of all or any part of such Offered
Securities as to which a Notice of Acceptance has not been given by the Investor
(the "Refused Securities"), upon terms and conditions, including, without
limitation, unit price and interest rates, which are no more favorable, in the
aggregate, to such other person or persons to whom the Offered Securities are
proposed to be sold or no less favorable to the Company than those set forth in
the Offer.

                        (ii) Reduction in Amount of Offered Securities. In the
event the Company shall propose to sell an amount of the Offered Securities
which is less than the aggregate amount of all of the Investor's Pro Rata
Portions with respect to the Investor who has timely submitted Notices of
Acceptance (any such sale to be in the manner and on the terms specified above),
then the number of the Offered Securities specified in the Investor's Notice of
Acceptance shall be reduced to an amount which shall be not less than the amount
of the Offered Securities which the Investor elected to purchase pursuant to (b)
above multiplied by a fraction, (i) the numerator of which shall be the amount
of Offered Securities which the Company actually proposes to sell, and (ii) the
denominator of which shall be the amount of all Offered Securities the Company
proposed to sell in its writing delivered pursuant to Section 8.2(a) above. In
the event that the number or amount of Offered Securities specified in the

                                       11

<PAGE>

Investor's Notice of Acceptance, is so reduced, the Company may not sell or
otherwise dispose of more than the reduced amount of the Offered Securities
until such securities have again been offered to the Investor in accordance with
(a) above.

                        (iii) Closing. At the closing of the sale of the Offered
Securities, which shall include full payment to the Company of the sale to such
other person or persons of all or less than all the Offered Securities, the
Investor shall purchase from the Company, and the Company shall sell to the
Investor, the number of Offered Securities specified in the Notice of
Acceptance, as reduced pursuant to Section 8.2(b) above upon the terms and
conditions specified in the Offer. The purchase by the Investor of any Offered
Securities is subject in all cases to the timely preparation, execution and
delivery by the Company and the Investor of a form of purchase agreement, which
shall be the same for each Investor, relating to such Offered Securities
reasonably satisfactory in form and substance to the Company and the Investor
and their respective counsel reflecting the terms and conditions specified in
the Offer. In connection therewith, the Investor undertakes to use commercially
reasonable efforts to execute and deliver such agreement with respect to the
shares to be purchased by the Investor such that the sale of the Offered
Securities by the Company may take place with such other person or persons in a
timely manner as required by any agreements between or among the Company and
such other person or persons.

                  (d) Further Sale. In each case, any Offered Securities not
purchased by the Investor or other person or persons in accordance with Section
8.2(c)(iii) above may not be sold or otherwise disposed of until they are again
offered to the Investor under the procedures specified in Section
8.2(c)(i)-(iii) above.

                  (e) Exceptions. The rights of the Investor under this Section
8.2 shall not apply to: (i) Common Stock issued as a stock dividend to holders
of Common Stock or upon any subdivision or combination of shares of Common
Stock; (ii) any capital stock or derivative thereof granted to an employee,
director or consultant under a Company stock or stock option plan or as
compensation for services; (iii) any securities issued as consideration for the
acquisition of another entity by the Company by merger or share exchange
(whereby the Company owns no less than 51% of the voting power of the surviving
entity) or purchase of substantially all of such entity's stock or assets; (iv)
any securities issued in connection with a license, strategic partnership, joint
venture or other similar agreement, provided that the purpose of such
arrangement is not primarily the raising of capital; (v) securities issued in an
underwritten public offering, or (viii) securities of the Company proposed to be
sold by a person, persons or entity other than the Company.

                  (f) Termination of Right. The Right of First Offer set forth
in this Section 8.2 shall be available so long as the Investor shall continue to
own 50% of the Shares purchased pursuant to this Agreement and shall in any
event terminate two (2) years following the Closing Date.

      9. Notices. All notices, requests, consents and other communications
hereunder shall be in writing, shall be mailed (A) if within the United States
by first-class registered or certified airmail, or nationally recognized
overnight express courier, postage prepaid, or by facsimile or electronic mail
or other electronic means providing for verifiable proof of receipt by the
addressee thereof (including transmittal in PDF format), or (B) if delivered
from outside the United States, by International Federal Express (or other
recognized international express courier), e-mail or facsimile, and shall be
deemed given (i) if delivered by first-class registered or certified mail, three
business days after so mailed, (ii) if delivered by nationally recognized
overnight carrier, one business day after so mailed, (iii) if delivered by
International Federal Express (or other recognized international express
courier), two business days after so mailed, (iv) if delivered by facsimile,
upon electronic confirmation of receipt and (v) if delivered by electronic mail
or other electronic means providing for verifiable proof of receipt by the
address thereof, when transmitted, and shall be delivered as addressed as
follows:

                  (a)   if to the Company, to:

                        TransTechnology Corporation
                        700 Liberty Avenue
                        Union, New Jersey 07038
                        Attn: Joseph F. Spanier, Vice President,
                        Chief Financial Officer and Treasurer
                        Fax: (908) 686-6921
                        E-mail: jspanier@ttccorp.com

                                       12

<PAGE>

                        with a copy to:

                        Hahn Loeser & Parks LLP
                        3300 BP Tower
                        200 Public Square
                        Cleveland, Ohio 44114-2301
                        Attn: F. Ronald O'Keefe, Esq.
                        Fax: (216) 241-2824
                        E-mail: frokeefe@hahnlaw.com

                  (b)   if to the Investor

                        Terrier Partners LP
                        145 E. 57th Street
                        10th Floor
                        New York, NY 10022
                        Attn: Bobby Melnick
                        E-mail: bdoggy@banet.net

or at such other address as such party each may specify by written notice to the
others.

      10. Changes. This Agreement may be modified, amended or waived pursuant to
a written instrument signed by the Company and the Investor. Any agreements with
Other Investors may be modified, amended or waived only pursuant to a written
instrument signed by the Company and Investor holding a majority of the Shares
issued and sold in the Offering, provided that such modification, amendment or
waiver is made with respect to all Agreements and does not adversely affect the
Investor without adversely affecting all Investors in a similar manner.

      11. Headings. The headings of the various sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be
part of this Agreement.

      12. Severability. In case any provision contained in this Agreement should
be invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby.

      13. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of Delaware, without giving
effect to the principles of conflicts of law.

      14. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute but one instrument, and shall become effective
when one or more counterparts have been signed by each party hereto and
delivered to the other parties. Any signatures delivered by a party by facsimile
transmission or by other electronic means providing for verifiable proof of
receipt by the addressee thereof (including via e-mail transmission and PDF
format) shall be deemed an original signature hereto.

      15. Entire Agreement. This Agreement and the Schedule annexed hereto,
together with the Confidentiality Agreement, the Registration Rights Agreement
and Opinion attached hereto as exhibits, constitute the entire agreement between
the parties hereto and supersedes any prior understandings or agreements
concerning the purchase and sale of the Shares and the resale registration of
the Shares.

      16. Confidential Information.

            (a) The Investor represents to the Company that, at all times during
the Company's offering of the Shares, the Investor has maintained in confidence
all non-public information regarding the Company received by the Investor from
the Company or its agents, including information with respect to the Offering
and Investor's participation therein, and covenants that it will continue to
maintain in confidence such information until such information (a) becomes
generally publicly available other than through a violation of this provision by
the Investor or its agents or (b) is required to be disclosed in legal
proceedings (such as by deposition, interrogatory, request for documents,
subpoena, civil investigation demand, filing with any governmental

                                       13

<PAGE>

authority or similar process), provided, however, that before making any use or
disclosure in reliance on this subparagraph (b) the Investor shall, to the
extent not prohibited by applicable law, rule or regulation, promptly notify the
Company of the circumstances giving rise thereto and will furnish only that
portion of the non-public information which is legally required and will
exercise its best efforts to obtain reliable assurance that confidential
treatment will be accorded any non-public information so furnished.

            (b) The Company shall promptly after the consummation of the
Offering of which the transactions contemplated by this Agreement is a part,
issue a press release substantially in the form attached hereto as Exhibit 3,
and timely file with the SEC a Form 8-K (which shall include as exhibits the
Agreement), in each case, disclosing the material terms of the transactions
contemplated hereby (including at least the number of Shares sold and proceeds
therefrom). The Company shall not publicly disclose the name of Investor or any
beneficial owner of Shares held by the Investor, or include the name of Investor
or such beneficial owner in any filing with the SEC or any state and federal
regulatory agency (other than the filing of the Agreements with the SEC pursuant
to the Exchange Act), without the prior written consent of Investor, except to
the extent such disclosure is required by law or regulation.

      17. No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person except as provided in Section 12 of the Registration Rights
Agreement.

      18. Knowledge. The term "knowledge" in this Agreement shall mean the
knowledge of the executive officers of the Company after making reasonable
inquiry under the circumstances.

                                       14

<PAGE>

                             INDEX OF DEFINED TERMS
<TABLE>
<S>                                                                                                  <C>
Aggregate Purchase Price............................................................................  1
Agreements..........................................................................................  3
Closing.............................................................................................  2
Closing Date........................................................................................  2
Common Stock........................................................................................  1
Company.............................................................................................  1
Diminution.........................................................................................  10
Exchange Act........................................................................................  3
Exchange Act Documents..............................................................................  3
Indemnification Threshold..........................................................................  10
Intellectual Property...............................................................................  4
Investment Company Act..............................................................................  6
Investor............................................................................................  1
Investor Indemnitee................................................................................  10
Investor's Pro Rata Portion........................................................................  11
Knowledge..........................................................................................  14
Loss...............................................................................................  10
Material Adverse Effect.............................................................................  3
NASD................................................................................................  6
Notice of Acceptance...............................................................................  11
Offer..............................................................................................  11
Offer Acceptance Period............................................................................  11
Offered Securities.................................................................................  11
Offering............................................................................................  1
Other Investors.....................................................................................  2
Purchase Price......................................................................................  1
Refused Securities.................................................................................  11
Registration Rights Agreement......................................................................  11
SEC.................................................................................................  5
Shares..............................................................................................  1
Stock Purchase Agreement............................................................................  1
Terms and Conditions................................................................................  1
</TABLE>

                                       15<PAGE>
                                                               EXECUTION VERSION

                                                                   Exhibit 10.40

================================================================================

                          REGISTRATION RIGHTS AGREEMENT

                                 by and between

                           TransTechnology Corporation

                                       and

                  The Stockholders listed on Schedule A hereto

                                   ----------

                          Dated as of February 17, 2006

================================================================================

<PAGE>
                                                               EXECUTION VERSION

                                Table of Contents
<TABLE>
<S>    <C>                                                                   <C>
1.     Certain Definitions..............................................      1

2.     Demand Registrations.............................................      3

3.     Shelf Registration...............................................      6

4.     Piggyback Registrations..........................................      8

5.     Other Registrations..............................................      9

6.     Selection of Underwriters........................................      9

7.     Holdback Agreements..............................................      9

8.     Procedures.......................................................     10

9.     Registration Expenses............................................     14

10.    Indemnification..................................................     15

11.    Rule 144.........................................................     17

12.    Transfer of Registration Rights..................................     17

13.    Miscellaneous....................................................     18
</TABLE>

<PAGE>
                                                               EXECUTION VERSION

                             Index of Defined Terms

<TABLE>
<S>                                                                          <C>
Affiliate................................................................    1
Agreement................................................................    1
Business Day.............................................................    1
Closing Date.............................................................    1
Common Stock.............................................................    1
Company..................................................................    1
Delay Period.............................................................    1
Demand Registration......................................................    1
Demand Registration Statement............................................    1
Exchange Act.............................................................    2
Full Cooperation.........................................................    2
Fully Marketed Underwritten Offering.....................................    2
Governmental Entity......................................................    2
Nasdaq...................................................................    2
NYSE.....................................................................    2
Person...................................................................    2
Piggyback Registration...................................................    2
Piggyback Registration Statement.........................................    2
Prospectus...............................................................    2
Registrable Common Stock.................................................    2
Registration Expenses....................................................    3
Registration Statement...................................................    3
Rule 144.................................................................    3
Rule 415.................................................................    3
SEC......................................................................    3
Securities Act...........................................................    3
Shelf Registration.......................................................    3
Shelf Registration Statement.............................................    3
Stock Purchase Agreement.................................................    3
Stockholder..............................................................    3
underwritten registration or underwritten offering.......................    3
</TABLE>

<PAGE>

      REGISTRATION RIGHTS AGREEMENT dated as of February 17, 2006, by and
between TransTechnology Corporation, a Delaware corporation (the "Company"), and
the stockholders of the Company listed in Exhibit A hereto (together, the
"Stockholders").

      In consideration of the mutual covenants and agreements herein contained,
and the entering into of the Stock Purchase Agreements, and other good and valid
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties to this Agreement hereby agree as follows:

      1. CERTAIN DEFINITIONS.

      In addition to the terms defined elsewhere in this Agreement, the
following terms shall have the following meanings:

      "Affiliate" of any Person means any other Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or
is under common control with, such Person. The term "control" (including the
terms "controlling," "controlled by" and "under common control with") as used
with respect to any Person means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities, by contract or
otherwise.

      "Agreement" means this Registration Rights Agreement, including all
amendments, modifications and supplements and any exhibits or schedules to any
of the foregoing, and shall refer to this Registration Rights Agreement as the
same may be in effect at the time such reference becomes operative.

      "Business Day" means any day, except a Saturday, Sunday or legal holiday
on which banking institutions in The City of New York are authorized or
obligated by law or executive order to close.

      "Closing Date" has the meaning set forth in the Stock Purchase Agreements.

      "Common Stock" means common stock, par value $.01 per share, of the
Company.

      "Company" has the meaning set forth in the introductory paragraph and
includes any other person referred to in the second sentence of Section 14(c)
hereof.

      "Delay Period" has the meaning set forth in Section 2(f) hereof.

      "Demand Registration" has the meaning set forth in Section 2(a) hereof.

      "Demand Registration Statement" has the meaning set forth in Section 2(b)
hereof.

<PAGE>

                                                               EXECUTION VERSION

      "Exchange Act" means the Securities Exchange Act of 1934, as amended.

      "Full Cooperation" means, in connection with any underwritten offering,
where, in addition to the cooperation otherwise required by this Agreement, (a)
members of senior management of the Company (including the chief executive
officer and chief financial officer) fully cooperate with the underwriter(s) in
connection therewith and make themselves available to participate in
"road-shows" and other customary marketing activities in such locations
(domestic and foreign) as reasonably recommended by the underwriter(s)
(including one-on-one meetings with prospective purchasers of the Registrable
Common Stock) and (b) the Company prepares preliminary and final prospectuses
(preliminary and final prospectus supplements in the case of an offering
pursuant to the Shelf Registration Statement) for use in connection therewith
containing such additional information as reasonably requested by the
underwriter(s) (in addition to the minimum amount of information required by
law, rule or regulation).

      "Fully Marketed Underwritten Offering" means an underwritten offering in
which there is Full Cooperation.

      "Governmental Entity" means any national, federal, state, municipal,
local, territorial, foreign or other government or any department, commission,
board, bureau, agency, regulatory authority or instrumentality thereof, or any
court, judicial, administrative or arbitral body or public or private tribunal.

      "Nasdaq" means the Nasdaq quotation system, or any successor reporting
system.

      "NYSE" means the New York Stock Exchange, Inc.

      "Person" means any individual, sole proprietorship, partnership, limited
liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, Governmental
Entity or any other entity.

      "Piggyback Registrations" has the meaning set forth in Section 4(a)
hereof.

      "Piggyback Registration Statement" has the meaning set forth in Section
4(a) hereof.

      "Prospectus" means the prospectus or prospectuses included in any
Registration Statement, as amended or supplemented by any prospectus supplement
with respect to the terms of the offering of any portion of the Registrable
Common Stock covered by such Registration Statement and by all other amendments
and supplements to the prospectus, including post-effective amendments and all
material incorporated by reference in such prospectus or prospectuses.

      "Registrable Common Stock" means (i) any shares of Common Stock issued
pursuant to the Stock Purchase Agreements, and (ii) any other securities into or
for which the Common Stock referred to in clause (i) has been converted,
substituted or exchanged,

<PAGE>

                                                               EXECUTION VERSION

and any securities issued or issuable with respect thereto upon any stock
dividend or stock split or in connection with a combination of shares,
reclassification, recapitalization, merger, consolidation or other
reorganization or otherwise.

      "Registration Expenses" has the meaning set forth in Section 9(a) hereof.

      "Registration Statement" means any registration statement of the Company
that covers any of the Registrable Common Stock pursuant to the provisions of
this Agreement, including the Prospectus, amendments and supplements to such
Registration Statement, including post-effective amendments, all exhibits and
all materials incorporated by reference in such Registration Statement.

      "Rule 144" means Rule 144 promulgated by the SEC pursuant to the
Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the SEC as a replacement thereto having
substantially the same effect as such rule.

      "Rule 415" means Rule 415 promulgated by the SEC pursuant to the
Securities Act, as such rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the SEC as a replacement thereto having
substantially the same effect as such rule.

      "SEC" means the Securities and Exchange Commission.

      "Securities Act" means the Securities Act of 1933, as amended.

      "Shelf Registration" has the meaning set forth in Section 3(a) hereof.

      "Shelf Registration Statement" has the meaning set forth in Section 3(a)
hereof.

      "Stockholders" has the meaning set forth in the introductory paragraph.

      "Stock Purchase Agreements" shall mean those Stock Purchase Agreements,
dated as of February 15, 2006, by and among the Company and the Stockholders.

      "underwritten registration or underwritten offering" means an offering in
which securities of the Company are sold to one or more underwriter (as defined
in Section 2(a)(11) of the Securities Act) for resale to the public.

      2. DEMAND REGISTRATIONS.

      (a) Demand Registration on Form S-1. At any time after September 30, 2006,
a Stockholder or Stockholders holding in the aggregate at least a majority of
the Registrable Common Stock then outstanding may request, in writing, that the
Company effect the registration on Form S-1 (or any successor form) providing
for the resale pursuant to Rule 415 from time to time by the Stockholders of
Registrable Common Stock owned by such Stockholder or Stockholders having an
aggregate value of at least

<PAGE>

                                                               EXECUTION VERSION

$6,250,000 (based on the market price on the date of such request) (a "Demand
Registration"), in accordance with the methods of distribution set forth in such
Demand Registration Statement (as defined below) (which plan of distribution is
attached hereto as Exhibit A, modified to be consistent with then current market
practice and in accordance with then applicable securities laws, rules and
regulations); provided, however, that if the Stockholders requesting a Demand
Registration pursuant to this Section 2(a) intend to distribute the Registrable
Common Stock by means of an underwriting, the Demand Registration shall not
provide for resale pursuant to Rule 415 and the plan of distribution shall be
that plan of distribution provided by the lead underwriter for the underwritten
offering. As promptly as practicable after such request, but in any event within
60 days of such request by the Stockholder, the Company shall file a
registration statement on Form S-1 or such other form under the Securities Act
then available to the Company. The Company shall use its best efforts to cause a
Demand Registration Statement to be declared effective by the SEC as promptly as
practicable following such filing. In connection with each such Demand
Registration, the Company shall cause there to occur Full Cooperation.
Notwithstanding anything to the contrary herein, the right to request a Demand
Registration pursuant to this Section 2(a) shall be suspended upon the Company
becoming eligible to file a Registration Statement on Form S-3 (or any successor
form), provided that the Company has filed a Shelf Registration Statement (as
defined below) and such Shelf Registration Statement has been declared effective
by the SEC. The foregoing notwithstanding, the Stockholders shall be entitled to
exercise their Demand Registration rights during the term of this Agreement in
the event (i) the Company is no longer eligible to use Form S-3, (ii) the Shelf
Registration is withdrawn prior to the time period specified in the third
sentence of Section 3(b) or (iii) sales under the Shelf Registration Statement
are suspended for periods in excess of those set forth in the last sentence of
Section 3(b).

      (b) Notice of Demand Registration on Form S-1. Upon receipt of any request
for a Demand Registration, the Company shall promptly give written notice of
such proposed registration to all other Stockholders. Such Stockholders shall
have the right, by giving written notice to the Company within fifteen (15) days
after the Company provides its notice, to elect to have included in such
registration such of their Registrable Common Stock as such Stockholders may
request in such notice of election, subject in the case of an underwritten
offering to the terms of Section 2(d). Thereupon, the Company shall, as
expeditiously as possible, use its best efforts to effect the registration of
all Registrable Common Stock which the Company has been requested to so register
(the "Demand Registration Statement").

      (c) Number of Demand Registrations. The Stockholders shall be entitled to
request two (2) Demand Registrations pursuant to Section 2(a). For purposes of
this Section 2(c), a Demand Registration pursuant to Section 2(a) shall not be
counted (i) until such time as the Demand Registration Statement has been
declared effective by the SEC (provided that the requesting Stockholders may
withdraw their request for such registration and such request shall not count as
a Demand Registration if (X) such withdrawal is as a result of information
concerning the business or financial condition of

<PAGE>

                                                               EXECUTION VERSION

the Company which is made known to the Stockholders after the date on which such
registration was requested or (Y) the Stockholders making such demand agree to
pay the Registration Expenses therefor pursuant to Section 9; or (ii) if, as a
result of an exercise of the underwriter's cut-back provisions, less than 50% of
the total amount of Registrable Common Stock that Stockholders have requested to
be included in such Demand Registration Statement are sold.

      (d) Number of Fully Marketed Underwritten Offerings. The Stockholders
shall be entitled to request no more than three (3) underwritten offerings
pursuant to all of the Demand Registration Statements and Shelf Registration
Statements and no more than one (1) underwritten offering pursuant to all of the
Demand Registration Statements and Shelf Registration Statements in any 12 month
period that requires involvement by management of the Company in road-show or
similar marketing activities (a "Fully Marketed Underwritten Offering). If the
Stockholders requesting a Demand Registration pursuant to Section 2(a) intend to
distribute the Registrable Common Stock covered by their request by means of an
underwriting, they shall so advise the Company as a part of their request made
pursuant to Section 2(a) and the Company shall include such information in its
written notice referred to in Section 2(b). In such event, (i) the right of any
other Stockholders to include their Registrable Common Stock in such
registration pursuant to Section 2(a) shall be conditioned upon such other
Stockholder's participation in such underwriting on the terms set forth herein,
and (ii) all Stockholders including Registrable Common Stock in such
registration shall enter into an underwriting agreement upon customary terms
with the underwriter or underwriters managing the offering; provided that such
underwriting agreement shall not provide for indemnification or contribution
obligations on the part of the Stockholders greater than the obligations of the
Stockholders pursuant to Section 9. If the Stockholders request a Fully Marketed
Underwritten Offering, the Company shall cause there to occur Full Cooperation
in connection therewith. An underwritten offering shall not count as one of the
permitted Fully Marketed Underwritten Offerings if there is not Full Cooperation
in connection therewith.

      (e) Priority on Demand Registrations. If, in connection with a Demand
Registration pursuant to Section 2(a), the managing underwriter shall advise the
Company that in its opinion the number of securities requested to be included in
such registration exceeds the number that can be sold in such offering without
having an adverse effect on such offering, including the price at which such
securities can be sold, then the Company shall include in such registration the
maximum number of shares that such underwriter advises can be so sold without
having such effect, allocated (i) first, to Registrable Common Stock requested
by the Stockholder or Stockholders to be included in such registration, (ii)
second, to the shares of Common Stock to be sold for the account of Company, and
(iii) third, among all shares of Common Stock requested to be included in such
registration by any other Persons allocated among such Persons in such manner as
they may agree.

      (f) Restrictions on Demand Registrations. If at the time of any request to
register Registrable Common Stock by a Stockholder or Stockholders pursuant to

<PAGE>

                                                               EXECUTION VERSION

Section 2(a), the Company is engaged or has plans to engage in a registered
public offering or is engaged in any other activity which, in the good faith
determination of the Company's Board of Directors by a majority of its Board of
Directors, would be adversely affected by the requested registration, then the
Company may at its option direct that such request be delayed for a period not
in excess of 90 days from the date of such request, such right to delay a
request to be exercised by the Company not more than twice in any 12-month
period but in no event may such two 90-day periods be consecutive or so close in
proximity as to cause a delay with respect to the filing of a Demand
Registration Statement to be longer than 120 days. The period during which any
filing is so delayed hereunder is referred to as a "Delay Period". In the event
that, in the judgment of the Company, it is advisable to suspend use of a
Prospectus included in a Demand Registration Statement due to pending material
developments or other events that have not yet been publicly disclosed and as to
which the Company believes public disclosure would be detrimental to the
Company, the Company shall notify all Stockholders to such effect, and, upon
receipt of such notice, each of the Stockholders shall immediately discontinue
any sales of Registrable Common Stock pursuant to such Demand Registration
Statement until each of the Stockholders has received copies of a supplemented
or amended Prospectus or until each of the Stockholders is advised in writing by
the Company that the then current Prospectus may be used and has received copies
of any additional or supplemental filings that are incorporated or deemed
incorporated by reference in such Prospectus. Notwithstanding anything to the
contrary herein, the Company shall not exercise its rights under the preceding
sentence to suspend sales of Registrable Common Stock for a period in excess of
60 days consecutively or 90 days in any 365-day period.

      (g) Effective Period of Demand Registrations. Subject to Sections
8(a)(ii), after any Demand Registration filed pursuant to this Agreement has
become effective, the Company shall use its best efforts to keep such Demand
Registration Statement effective for a period of at least one (1) year from the
date on which the SEC declares such Demand Registration Statement effective plus
the duration of any Delay Period and any period during which the use of a
Prospectus is suspended pursuant to Section 2(f), or such shorter period that
shall terminate on the earliest of (x) when all of the Registrable Common Stock
covered by such Demand Registration Statement has been sold pursuant to such
Demand Registration Statement in accordance with the plan of distribution set
forth therein, and (y) when, in the opinion of counsel to the Stockholders, all
outstanding Registrable Common Stock may be resold without registration under
the Securities Act pursuant to Rule 144(k) under the Securities Act or any
successor provision thereto.

      3. SHELF REGISTRATIONS.

      (a) Shelf Registration on Form S-3. As soon as the Company becomes
eligible to file a Registration Statement on Form S-3 (or any successor form
relating to secondary offerings), the Company shall prepare and file or cause to
be prepared and filed with the SEC, as soon as practicable, a Registration
Statement on Form S-3 (or any successor thereto) relating to the offering on a
continuous or delayed basis pursuant to Rule 415 from time to time by the
Stockholders of all then outstanding Registrable

<PAGE>

                                                               EXECUTION VERSION

Common Stock (a "Shelf Registration" and any such Registration Statement filed
on Form S-3 (or any successor thereto) a "Shelf Registration Statement"), in
each case, in accordance with the methods of distribution set forth in such
Shelf Registration Statement (which plan of distribution is attached as hereto
as Exhibit A modified to be consistent with then current market practice and in
accordance with then applicable securities laws, rules and regulations) and,
thereafter, shall use its commercially reasonable efforts to cause such Shelf
Registration Statement to be declared effective under the Securities Act as
promptly as practicable thereafter. Notwithstanding the foregoing, the Company
may be able combine a Shelf Registration Statement from primary and/or secondary
offerings. Furthermore, the Company shall not be required to prepare and file a
Shelf Registration Statement if all Registrable Common Stock shall have been
sold or when, in the opinion of counsel to the Stockholders, all outstanding
Registrable Common Stock may be resold without registration under the Securities
Act pursuant to Rule 144(k) under the Securities Act or any successor provision
thereto.

      (b) Limitations on Takedowns. There shall be no limit on the aggregate
number of takedowns, off such Shelf Registration Statement; provided, however,
that the Company shall not be obligated to effect (i) more than three (3) Fully
Marketed Underwritten Offerings off such Shelf Registration Statements, (ii) one
Fully Marketed Underwritten Offering off such Shelf Registration Statement in
any 12-month period, or (iii) a takedown within ninety (90) days after the
pricing date of a Fully Marketed Underwritten Offering off any Shelf
Registration. The Company shall use its commercially reasonable efforts to keep
the Shelf Registration Statement pursuant to this Section 3(b) continuously
effective (including by filing supplements and amendments) in order to permit
the Prospectus forming part thereof to be usable by the Stockholders for such
period that will terminate upon the earliest to occur of the following: (X) when
all Registrable Common Stock have been sold pursuant to such Shelf Registration
Statement, (Y) when, in the opinion of counsel to the Stockholders, all
outstanding Registrable Common Stock may be resold without registration under
the Securities Act pursuant to Rule 144(k) under the Securities Act or any
successor provision thereto and (Z) three (3) years from the effective date of
such Shelf Registration Statement. In the event that, in the judgment of the
Company, it is advisable to suspend use of a Prospectus included in a Shelf
Registration Statement due to pending material developments or other events that
have not yet been publicly disclosed and as to which the Company believes public
disclosure would be detrimental to the Company, the Company shall notify all
Stockholders to such effect, and, upon receipt of such notice, each of the
Stockholders shall immediately discontinue any sales of Registrable Common Stock
pursuant to such Shelf Registration Statement until each of the Stockholders has
received copies of a supplemented or amended Prospectus or until Stockholders
are advised in writing by the Company that the then current Prospectus may be
used and has received copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in such Prospectus.
Notwithstanding anything to the contrary herein, the Company shall not exercise
its rights under the preceding sentence to suspend sales of Registrable Common
Stock for a period in excess of 60 days consecutively or 90 days in any 365-day
period.

<PAGE>

                                                               EXECUTION VERSION

      (c) Priority on Shelf Registrations. If, in connection with a Shelf
Registration pursuant to this Section 3, the managing underwriter shall advise
the Company that in its opinion the number of securities requested to be
included in such registration exceeds the number that can be sold in such
offering without having an adverse effect on such offering, including the price
at which such securities can be sold, then the Company shall include in such
registration the maximum number of shares that such underwriter advises can be
so sold without having such effect, allocated (i) first, to the securities to be
sold for the account of the Company, (ii) second, to Registrable Common Stock
requested by the Stockholders to be included in such registration and (iii)
third, among all shares of Common Stock requested to be included in such
registration by any other Persons allocated among such Persons in such manner as
they may agree.

      4. PIGGYBACK REGISTRATIONS.

      (a) Right to Piggyback. Whenever the Company proposes to publicly sell or
register for sale any of its common equity securities pursuant to a registration
statement (a "Piggyback Registration Statement") under the Securities Act (other
than a registration statement on Form S-8 or on Form S-4 or any similar
successor forms thereto), whether for its own account or for the account of one
or more securityholders of the Company (a "Piggyback Registration"), the Company
shall give prompt written notice to the Stockholders of its intention to effect
such sale or registration and, subject to Sections 4(b) and 4(c), shall include
in such transaction all Registrable Common Stock with respect to which the
Company has received a written request from the Stockholders for inclusion
therein within 15 days after the receipt of the Company's notice. The Company
may postpone or withdraw the filing or the effectiveness of a Piggyback
Registration at any time in its sole discretion, without prejudice to the
Stockholder's right to immediately request a Demand Registration hereunder. A
Piggyback Registration shall not be considered a Demand Registration for
purposes of Section 2 of this Agreement.

      (b) Priority on Primary Registrations. If a Piggyback Registration is
initiated as an underwritten primary registration on behalf of the Company, and
the managing underwriter advises the Company in writing that in its opinion the
number of securities requested to be included in such registration exceeds the
number that can be sold in such offering without having an adverse effect on
such offering, including the price at which such securities can be sold, then
the Company shall include in such registration the maximum number of shares that
such underwriter advises can be so sold without having such effect, allocated
(i) first, to the securities the Company proposes to sell, (ii) second, to the
Registrable Common Stock requested to be included therein by the Stockholders,
and (iii) third, among other securities requested to be included in such
registration by other security holders of the Company on such basis as such
holders may agree among themselves and the Company.

      (c) Priority on Secondary Registrations. If a Piggyback Registration is
initiated as an underwritten registration on behalf of a holder of the Company's
securities other than Registrable Common Stock or on behalf of the Company, and
the managing underwriter advises the Company in writing that in its opinion the
number of securities

<PAGE>

                                                               EXECUTION VERSION

requested to be included in such registration exceeds the number that can be
sold in such offering without having an adverse effect on such offering,
including the price at which such securities can be sold, then the Company shall
include in such registration the maximum number of shares that such underwriter
advises can be so sold without having such effect, allocated (i) first, to other
securities requested to be included in such registration by other security
holders and the Company, pro rata among such holder(s) and the Company on the
basis of the number of shares requested to be registered by them, and (ii)
second, to Registrable Common Stock requested to be included therein by the
Stockholders.

      5. OTHER REGISTRATIONS.

      The Company shall not grant to any Person the right, other than as set
forth herein and except to employees of the Company with respect to
registrations on Form S-8 and with respect to registrations on Form S-4 (or any
successor forms thereto), to request the Company to register any securities of
the Company except such rights as are (a) not more favorable than or
inconsistent with the rights granted to the Stockholders, and (b) that do not
adversely affect the priorities set forth herein of the Stockholders.

      6. SELECTION OF UNDERWRITERS.

      If any of the Registrable Common Stock covered by a Demand Registration
Statement or a Shelf Registration Statement is to be sold in an underwritten
offering, the Stockholders shall have the right to select the managing
underwriter(s) to administer the offering subject to the prior approval of the
Company, which approval shall not be unreasonably withheld.

      7. HOLDBACK AGREEMENTS.

      Each of the Stockholders (regardless of whether or not such Stockholder is
a selling Stockholder in any underwritten Demand Registration, Piggyback
Registration or Shelf Registration, and, in each case, with respect to the
Shares not included in such underwritten offering) and the Company agrees not
to, and the Company shall exercise its best efforts to obtain from its directors
and executive officers, and commercially reasonable efforts to obtain from its
beneficial owners of 5% or more of the Company's outstanding voting stock,
agreements (in the underwriters' customary form) not to, directly or indirectly
offer, sell, pledge, contract to sell, (including any short sale), grant any
option to purchase or otherwise dispose of any equity securities of the Company
or enter into any hedging transaction relating to any equity securities of the
Company during the 90 days beginning on the effective date of any underwritten
Demand Registration Statement or any underwritten Piggyback Registration
Statement or the pricing date of any underwritten offering pursuant to a Shelf
Registration Statement (except as part of such underwritten registration or
pursuant to registrations on Form S-8 or S-4 or any successor forms thereto)
unless the underwriter managing the offering otherwise agrees to a shorter
period, provided, however, that if (i) the Company issues an earnings release or
material news, or a material event relating to the Company occurs, during the
last 17

<PAGE>

                                                               EXECUTION VERSION

days of the lock-up period, or (ii) prior to the expiration of the holdback
period, the Company announces that it will release earnings results during the
16-day period beginning on the last day of the holdback period, the restrictions
imposed by this Section 7 shall continue to apply until the expiration of the
18-day period beginning on the issuance of the earnings release or the
occurrence of the material news or material event; provided, however, that this
sentence shall not apply if any research published or distributed by any
underwriter on the Company would be compliant under Rule 139 of the Securities
Act and the Company's securities are actively traded as defined in Rule
101(c)(1) of Regulation M of the Exchange Act.

      The Company may impose stop-transfer instructions with respect to the
Registrable Common Stock or other securities subject to the foregoing
restriction until the end of the applicable "holdback" period.

      In addition, to the extent that the terms of the holdback agreements of
any of the Stockholders provide for more favorable terms than those of the
Company, its executive officers or directors, then the terms of the holdback
agreements of the Company, its executive officers and directors shall be amended
to be consistent with those of the Stockholders.

      8. PROCEDURES.

      (a) Whenever the Stockholders request that any Registrable Common Stock be
registered or sold pursuant to this Agreement, the Company shall use its best
efforts to effect the registration and the sale of such Registrable Common Stock
in accordance with the intended methods of disposition thereof, and pursuant
thereto the Company shall as expeditiously as possible:

                  (i) prepare and file with the SEC a Registration Statement
            with respect to such Registrable Common Stock and use its best
            efforts to cause such Registration Statement to become effective as
            soon as practicable thereafter; and at least five (5) Business Days
            before filing a Registration Statement or Prospectus or any
            amendments or supplements thereto (including any prospectus
            supplement for a shelf takedown), furnish to the Stockholders and
            the underwriter or underwriters, if any, copies of all such
            documents proposed to be filed, including documents incorporated by
            reference in the Prospectus and, if requested by the Stockholders,
            the exhibits incorporated by reference, and the Stockholders (and
            the underwriter(s), if any) shall have the opportunity to review and
            comment thereon, and the Company will make such changes and
            additions thereto as reasonably requested by the Stockholders (and
            the underwriter(s), if any) prior to filing any Registration
            Statement or amendment thereto or any Prospectus or any supplement
            thereto;

                  (ii) prepare and file with the SEC such amendments and
            supplements to such Registration Statement and the Prospectus used
            in
<PAGE>

                                                               EXECUTION VERSION

            connection therewith as may be necessary to keep such Registration
            Statement effective as set forth in Section 2 hereof, or such
            shorter period as is necessary to complete the distribution of the
            securities covered by such Registration Statement and comply with
            the provisions of the Securities Act with respect to the disposition
            of all securities covered by such Registration Statement during such
            period in accordance with the intended methods of disposition by the
            Stockholders thereof set forth in such Registration Statement and,
            in the case of the Shelf Registration Statement, prepare such
            prospectus supplements containing such disclosures as may be
            reasonably requested by the Stockholders or any underwriter(s) in
            connection with each shelf takedown;

                  (iii) furnish to the Stockholders such number of copies of
            such Registration Statement, each amendment and supplement thereto,
            the Prospectus included in such Registration Statement (including
            each preliminary Prospectus) and such other documents as the
            Stockholders and any underwriter(s) may reasonably request in order
            to facilitate the disposition of the Registrable Common Stock,
            provided, however, that the Company shall have no such obligation to
            furnish copies of a final prospectus if the conditions of Rule
            172(c) under the Securities Act are satisfied by the Company;

                  (iv) use its best efforts to register or qualify such
            Registrable Common Stock under such other securities or blue sky
            laws of such jurisdictions (domestic or foreign) as any
            underwriter(s) reasonably requests (in light of the Company's status
            as OTC-Other) to enable the Stockholder and any underwriter(s) to
            consummate the disposition in such jurisdictions of the Registrable
            Common Stock (provided, that the Company will not be required to (1)
            qualify generally to do business in any jurisdiction where it would
            not otherwise be required to qualify but for this subparagraph (iv),
            (2) subject itself to taxation in any such jurisdiction or (3)
            consent to general service of process in any such jurisdiction);

                  (v) promptly notify the Stockholders and any underwriter(s),
            at any time when a Prospectus relating thereto is required to be
            delivered under the Securities Act, of the occurrence of any event
            as a result of which the Prospectus included in such Registration
            Statement contains an untrue statement of a material fact or omits
            any material fact necessary to make the statements therein not
            misleading, and, at the request of the Stockholders or any
            underwriter(s), the Company shall prepare a supplement or amendment
            to such Prospectus so that, as thereafter delivered to the
            purchasers of such Registrable Common Stock, such Prospectus shall
            not contain an untrue statement of a material fact or omit to state
            any material fact necessary to make the statements therein not
            misleading;

<PAGE>

                                                               EXECUTION VERSION

                  (vi) in the case of an underwritten offering, (i) enter into
            such agreements (including underwriting agreements in customary
            form), (ii) take all such other actions as the Stockholders or the
            underwriter(s) reasonably request in order to expedite or facilitate
            the disposition of such Registrable Common Stock (including, without
            limitation, causing senior management and other Company personnel to
            cooperate with the Stockholders and the underwriter(s) in connection
            with performing due diligence) and (iii) cause its counsel to issue
            opinions of counsel in form, substance and scope as are customary in
            primary underwritten offerings, addressed and delivered to the
            underwriter(s) and the Stockholders;

                  (vii) in connection with any Demand Registration pursuant to
            Section 2 and each Fully Marketed Underwritten Offering requested by
            the Stockholders under Section 2 or 3, cause there to occur Full
            Cooperation and, in all other cases, cause members of senior
            management of the Company to be available to participate in, and to
            cooperate with the underwriter(s) in connection with customary
            marketing activities (including select conference calls and
            one-on-one meetings with prospective purchasers);

                  (viii) make available for inspection by the Stockholders, any
            underwriter participating in any disposition pursuant to such
            Registration Statement, and any attorney, accountant or other agent
            retained by the Stockholders or underwriter, all financial and other
            records, pertinent corporate documents and properties of the
            Company, and cause the Company's officers, directors, employees and
            independent accountants to supply all information reasonably
            requested by the Stockholders, underwriter, attorney, accountant or
            agent in connection with such Registration Statement;

                  (ix) use its best efforts to cause all such Registrable Common
            Stock to be listed or qualified on each securities exchange on which
            securities of the same class issued by the Company are then listed
            or traded or, if no such similar securities are then listed or
            traded, on Nasdaq or a national securities exchange on which the
            Registrable Common Stock may be listed and traded;

                  (x) provide a transfer agent and registrar for all such
            Registrable Common Stock not later than the effective date of such
            Registration Statement;

                  (xi) if requested, cause to be delivered, immediately prior to
            the pricing of any underwritten offering, immediately prior to
            effectiveness of each Registration Statement (and, in the case of an
            underwritten offering, at the time of closing of the sale of
            Registrable Common Stock pursuant thereto), letters from the
            Company's independent registered public

<PAGE>

                                                               EXECUTION VERSION

            accountants addressed to the Stockholders and each underwriter, if
            any, stating that such accountants are independent public
            accountants within the meaning of the Securities Act and the
            applicable rules and regulations adopted by the SEC thereunder, and
            otherwise in customary form and covering such financial and
            accounting matters as are customarily covered by letters of the
            independent registered public accountants delivered in connection
            with primary underwritten public offerings; and

                  (xii) promptly notify the Stockholders and the underwriter or
            underwriters, if any:

                        (1) when the Registration Statement, any pre-effective
                        amendment, the Prospectus or any Prospectus supplement
                        or post-effective amendment to the Registration
                        Statement has been filed and, with respect to the
                        Registration Statement or any post-effective amendment,
                        when the same has become effective;

                        (2) of any written request by the SEC for amendments or
                        supplements to the Registration Statement or Prospectus;

                        (3) of the notification to the Company by the SEC of its
                        initiation of any proceeding with respect to the
                        issuance by the SEC of any stop order suspending the
                        effectiveness of the Registration Statement; and

                        (4) of the receipt by the Company of any notification
                        with respect to the suspension of the qualification of
                        any Registrable Common Stock for sale under the
                        applicable securities or blue sky laws of any
                        jurisdiction.

      (b) The Company represents and warrants that no Registration Statement
(including any amendments or supplements thereto and Prospectuses contained
therein) shall contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein, or necessary to make the
statements therein not misleading (except that the Company makes no
representation or warranty with respect to information relating to the
Stockholders furnished to the Company by or on behalf of the Stockholders
specifically for use therein).

      (c) The Company shall make available to the Stockholders (i) promptly
after the same is prepared and publicly distributed, filed with the SEC, or
received by the Company, one copy of each Registration Statement and any
amendment thereto, each preliminary Prospectus and Prospectus and each amendment
or supplement thereto, each letter written by or on behalf of the Company to the
SEC or the staff of the SEC (or other governmental agency or self-regulatory
body or other body having jurisdiction, including any domestic or foreign
securities exchange), and each item of correspondence from the

<PAGE>

                                                               EXECUTION VERSION

SEC or the staff of the SEC (or other governmental agency or self-regulatory
body or other body having jurisdiction, including any domestic or foreign
securities exchange), in each case relating to such Registration Statement, and
(ii) such number of copies of a Prospectus, including a preliminary Prospectus,
and all amendments and supplements thereto and such other documents as the
Stockholders or any underwriter may reasonably request in order to facilitate
the disposition of the Registrable Common Stock. The Company will promptly
notify the Stockholders of the effectiveness of each Registration Statement or
any post-effective amendment. The Company will promptly respond to any and all
comments received from the SEC, with a view towards causing each Registration
Statement or any amendment thereto to be declared effective by the SEC as soon
as practicable and shall file an acceleration request as soon as practicable
following the resolution or clearance of all SEC comments or, if applicable,
following notification by the SEC that any such Registration Statement or any
amendment thereto will not be subject to review.

      (d) The Company may require the Stockholders to furnish to the Company any
other information regarding the Stockholders and the distribution of such
securities as the Company reasonably determines, based on the advice of counsel,
is required to be included in any Registration Statement.

      (e) The Company shall not permit any officer, director, underwriter,
broker or any other person acting on behalf of the Company to use any free
writing prospectus (as defined in Rule 405 under the Securities Act) in
connection with any registration statement covering Registrable Common Stock,
without the prior written consent of the Stockholder and any underwriter which
consent shall not be unreasonably withheld or delayed. Any consent to the use of
a free writing prospectus included in an underwriting agreement to which the
Stockholders are parties shall be deemed to satisfy the requirement for such
consent.

      9. REGISTRATION EXPENSES.

      (a) All expenses incident to the Company's performance of or compliance
with this Agreement, including, without limitation, all registration and filing
fees (including SEC registration fees and NASD filing fees), fees and expenses
of compliance with securities or blue sky laws, listing application fees,
printing expenses, transfer agent's and registrar's fees, cost of printing and
distributing Prospectuses in preliminary and final form as well as any
supplements thereto, and fees and disbursements of counsel for the Company and
all accountants and other Persons retained by the Company (all such expenses
being herein called "Registration Expenses") (but not including any underwriting
discounts or commissions or transfer taxes, if any, attributable to the sale of
Registrable Common Stock, shall be borne by the Company. In addition, the
Company shall pay its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit or quarterly review, the
expense of any liability insurance and the expenses and fees for listing the
securities to be registered on each securities exchange on which they are to be
listed. Notwithstanding the foregoing, the Stockholders will use

<PAGE>

                                                               EXECUTION VERSION

commercially reasonable efforts to negotiate with the underwriter(s) to any
offerings for the payment by the underwriter(s) of 50% of any expenses incurred
in any road-shows. If any Stockholders attend any road-show, whether in domestic
or foreign locations, the Stockholders shall be reimbursed only for their
reasonable expenses in connection therewith (e.g. use of private planes will not
be reimbursed).

      (b) In connection with each registration initiated hereunder (whether a
Demand Registration, Shelf Registration, Piggyback Registration or any Fully
Marketed Underwritten Offering under each of the foregoing), the Company shall
pay, or shall reimburse the Stockholders for, the reasonable fees and
disbursements of one law firm chosen by the Stockholders as their counsel.

      (c) The obligation of the Company to bear the expenses described in
Section 9(a) and to pay or reimburse the Stockholders for the expenses described
in Section 9(b) shall apply irrespective of whether a registration, once
properly demanded, if applicable, becomes effective, is withdrawn or suspended,
is converted to another form of registration and irrespective of when any of the
foregoing shall occur.

      10. INDEMNIFICATION.

      (a) The Company shall indemnify, to the fullest extent permitted by law,
the Stockholders and their respective officers, directors, employees and
Affiliates and each Person who controls the Stockholders (within the meaning of
the Securities Act) against all losses, claims, damages, liabilities and
expenses arising out of or based upon any untrue or alleged untrue statement of
material fact contained in any Registration Statement, Prospectus or preliminary
Prospectus or any "issuer free writing prospectus" (as defined in Securities Act
Rule 433) or any amendment thereof or supplement thereto or any omission or
alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading or any violation or alleged
violation by the Company of the Securities Act, the Exchange Act or applicable
"blue sky" laws, except insofar as the same are made in reliance and in
conformity with information relating to the Stockholders furnished in writing to
the Company by the Stockholders expressly for use therein. In connection with an
underwritten offering, the Company shall indemnify such underwriter(s), their
officers, employees and directors and each Person who controls such
underwriter(s) (within the meaning of the Securities Act) to the same extent as
provided above with respect to the indemnification of the Stockholders.

      (b) In connection with any Registration Statement in which the
Stockholders are participating, the Stockholders shall furnish to the Company,
in writing, such information as the Company reasonably determines, based on the
advice of counsel, is required to be included in any such Registration Statement
or Prospectus and shall indemnify, to the fullest extent permitted by law, the
Company, its officers, employees, directors, Affiliates, and each Person who
controls the Company (within the meaning of the Securities Act) against all
losses, claims, damages, liabilities and expenses arising out of or based upon
any untrue or alleged untrue statement of material fact contained in the

<PAGE>

                                                               EXECUTION VERSION

Registration Statement, Prospectus or preliminary Prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, but only to the extent that the same are made in reliance and in
conformity with information relating to the Stockholders furnished in writing to
the Company by the Stockholders expressly for use therein.

      (c) Any Person entitled to indemnification hereunder shall (i) give prompt
written notice to the indemnifying party of any claim with respect to which it
seeks indemnification and (ii) unless in such indemnified party's reasonable
judgment a conflict of interest between such indemnified and indemnifying
parties may exist with respect to such claim, permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party. If such defense is assumed, the indemnifying party shall not
be subject to any liability for any settlement made by the indemnified party
without its consent (but such consent will not be unreasonably withheld). An
indemnifying party who is not entitled to, or elects not to, assume the defense
of a claim shall not be obligated to pay the fees and expenses of more than one
counsel (in addition to any local counsel) for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment
of any indemnified party there may be one or more legal or equitable defenses
available to such indemnified party that are in addition to or may conflict with
those available to another indemnified party with respect to such claim. Failure
to give prompt written notice shall not release the indemnifying party from its
obligations hereunder.

      (d) The indemnification 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 or any officer, director or controlling Person of such
indemnified party and shall survive the transfer of securities.

      (e) If the indemnification provided for in or pursuant to this Section 10
is due in accordance with the terms hereof, but is held by a court to be
unavailable or unenforceable in respect of any losses, claims, damages,
liabilities or expenses referred to herein, then each applicable indemnifying
party, in lieu of indemnifying such indemnified party, shall contribute to the
amount paid or payable by such indemnified Person as a result of such losses,
claims, damages, liabilities or expenses in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of the
indemnified party on the other in connection with the statements or omissions
that result in such losses, claims, damages, liabilities or expenses as well as
any other relevant equitable considerations. The relative fault of the
indemnifying party on the one hand and of the indemnified Person on the other
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the indemnifying
party or by the indemnified party, and by such party's relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. In no event shall the liability of the Stockholders be

<PAGE>

                                                               EXECUTION VERSION

greater in amount than the amount of net proceeds received by the Stockholders
upon such sale.

      11. RULE 144.

      The Company covenants that it will file the reports required to be filed
by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder, and it will take such further action
as the Stockholders may reasonably request to make available adequate current
public information with respect to the Company meeting the current public
information requirements of Rule 144(c) under the Securities Act, to the extent
required to enable the Stockholders to sell Registrable Common Stock without
registration under the Securities Act within the limitation of the exemptions
provided by (i) Rule 144 under the Securities Act, as such Rule may be amended
from time to time, or (ii) any similar rule or regulation hereafter adopted by
the SEC. Upon the request of the Stockholders, the Company will deliver to the
Stockholders a written statement as to whether it has complied with such
information and requirements.

      12. TRANSFER OF REGISTRATION RIGHTS.

      (a) The Stockholders may transfer all or any portion of their
then-remaining rights under Sections 2, 3, 4, 6, 7, 8, 9, 10, 11, and 13 of this
Agreement to any transferee who acquires at least 1,000,000 shares of the
Registrable Common Stock initially received by the Stockholders pursuant to the
Stock Purchase Agreement (each, a "transferee"). Any transfer of registration
rights pursuant to this Section 12 shall be effective upon receipt by the
Company of (x) written notice from the Stockholders stating the name and address
of any transferee and identifying the amount of Registrable Common Stock with
respect to which the rights under this Agreement are being transferred and the
nature of the rights so transferred and (y) a written agreement from the
transferee to be bound by all of the terms of this Agreement. In connection with
any such transfer, the term "Stockholders" as used in this Agreement shall,
where appropriate to assign such rights to such transferees, be deemed to refer
to the transferee holders of such Registrable Common Stock. The Stockholders and
such transferees may exercise the registration rights hereunder in such
proportion (not to exceed the then-remaining rights hereunder) as they shall
agree among themselves.

      (b) After such transfer, the Stockholders shall retain their rights under
this Agreement with respect to all other Registrable Common Stock owned by the
Stockholders. Upon the request of the Stockholders, the Company shall execute a
Registration Rights Agreement with such transferee or a proposed transferee
substantially similar to the applicable sections of this Agreement.

<PAGE>

                                                               EXECUTION VERSION

      13. TERMINATION. This Agreement shall terminate upon the later to occur of
(i) five (5) years from the date hereof, and (ii) when, in the opinion of
counsel to the Stockholders, all outstanding Registrable Common Stock may be
resold without registration under the Securities Act pursuant to Rule 144(k)
under the Securities Act or any successor provision thereto.

      14. MISCELLANEOUS.

      (a) Notices. All notices, requests, consents and other communications
required or permitted hereunder shall be in writing and shall be hand delivered
or mailed postage prepaid by registered or certified mail or by facsimile
transmission (with immediate telephone confirmation thereafter) and, in the case
of the Stockholders, shall also be sent via e-mail,

            If to the Company:

                        TransTechnology Corporation
                        700 Liberty Avenue
                        Union, NJ 07083
                        Attention: Joseph F. Spanier
                        Facsimile No.: (908) 686-6921
                        Email: jspanier@ttccorp.com

            with a copy to (which shall not constitute notice):

                        Wells Fargo Securities, LLC
                        123 N. Wacker Drive, Suite 1150
                        Chicago, IL 60606
                        Attention: Stephen T. Moss
                        Facsimile No.: (312) 762-9059
                        Email: steve.moss@wellsfargo.com

                        And

                        Hahn Loeser & Parks, LLP
                        3300 BP Tower, 200 Public Square
                        Cleveland, Ohio 44114-2301
                        Attention: F. Ronald O'Keefe, Esq.
                        Facsimile No.: (216) 241-2824
                        Email: frokeefe@hahnlaw.com

<PAGE>

                                                               EXECUTION VERSION

      If to the Stockholders to the address set forth in Schedule A and if to
any transferee Stockholders, to the address of such transferee Stockholders set
forth in the transfer documentation provided to the Company, in each case with
copies to (which shall not constitute notice) their respective counsel at the
address set forth in Schedule A, or at such other address as such party each may
specify by written notice to the others, and each such notice, request, consent
and other communication shall for all purposes of the Agreement be treated as
being effective or having been given when delivered personally, upon one
Business Day after being deposited with a courier if delivered by courier, upon
receipt of facsimile confirmation if transmitted by facsimile, or, if sent by
mail, at the earlier of its receipt or 72 hours after the same has been
deposited in a regularly maintained receptacle for the deposit of United States
mail, addressed and postage prepaid as aforesaid.

      (b) No Waivers. 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.

      (c) 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. If the outstanding Common Stock is converted into or
exchanged or substituted for other securities issued by any other Person, as a
condition to the effectiveness of the merger, consolidation, reclassification,
share exchange or other transaction pursuant to which such conversion, exchange,
substitution or other transaction takes place, such other Person shall
automatically become bound hereby with respect to such other securities
constituting Registrable Common Stock and, if requested by the Stockholders or a
permitted transferee, shall further evidence such obligation by executing and
delivering to the Stockholders and such transferee a written agreement to such
effect in form and substance satisfactory to the Stockholders.

      (d) Governing Law. The internal laws of Delaware shall govern the
enforceability and validity of this Agreement, the construction of its terms and
the interpretation of the rights and duties of the parties, without regard to
its principles of conflicts of laws that would implicate the substantive or
procedural laws of any other jurisdiction.

      (e) Jurisdiction. 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 be brought in any federal
or state court located in the County and State of New York, 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

<PAGE>

                                                               EXECUTION VERSION

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 14(a) shall be deemed effective service of
process on such party.

      (f) 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.

      (g) Counterparts; Effectiveness. This Agreement may be executed in any
number of counterparts (including by facsimile) and by different parties hereto
in separate counterparts, with the same effect as if all parties had signed the
same document. All such counterparts shall be deemed an original, shall be
construed together and shall constitute one and the same instrument. This
Agreement shall become effective when each party hereto shall have received
counterparts hereof signed by all of the other parties hereto.

      (h) Entire Agreement. This Agreement contains the entire agreement between
the parties hereto with respect to the subject matter hereof and supersedes and
replaces all other prior agreements, written or oral, among the parties hereto
with respect to the subject matter hereof.

      (i) Captions. The headings and other captions in this Agreement are for
convenience and reference only and shall not be used in interpreting, construing
or enforcing any provision of this Agreement.

      (j) Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party. Upon such a
determination, the parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner in order that the transactions contemplated
hereby be consummated as originally contemplated to the fullest extent possible.

      (k) Amendments. The provisions of this Agreement, including the provisions
of this sentence, may not be amended, modified or supplemented, and waivers or
consents to or departures from the provisions hereof may not be given, without
the written consent of the Company and the Stockholders.

      (l) Aggregation of Stock. All Registrable Common Stock held by or acquired
by any Person who is an Affiliate of any of the Stockholders will be aggregated
together for the purpose of determining the availability of any rights under
this Agreement.

<PAGE>

                                                               EXECUTION VERSION

      (m) Equitable Relief. The parties hereto agree that legal remedies may be
inadequate to enforce the provisions of this Agreement and that equitable
relief, including specific performance and injunctive relief, may be used to
enforce the provisions of this Agreement.

                            [Execution Page Follows]

<PAGE>

                                                               EXECUTION VERSION

      IN WITNESS WHEREOF, this Registration Rights Agreement has been duly
executed by each of the parties hereto as of the date first written above.

TRANSTECHNOLOGY CORPORATION

By: /s/ Joseph F. Spanier
    --------------------------------
    Name:
    Title:

TINICUM CAPITAL PARTNERS II, L.P.

By: TINICUM LANTERN, L.L.C.

Its  General Partner

By: /s/ Eric Ruttenberg
    --------------------------------
    Name:
    Title:

TINICUM CAPITAL PARTNERS PARALLEL FUND II, L.P.

By: TINICUM LANTERN, L.L.C.

Its  General Partner

By: /s/ Eric Ruttenberg
    ---------------------------------
    Name:
    Title:

TERRIER PARTNERS LP

By: B DOGGY LLC,
its General Partner

By: Bobby Melnick,
its Managing Member

By: /s/ Bobby Melnick
    ---------------------------------
<PAGE>

                                                               EXECUTION VERSION

WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.

By:  Wynnefield Capital Management, LLC,
     its General Partner

By: /s/ Joshua H. Landes
    -------------------------------------
    Joshua H. Landes, Co-Managing Member

WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I

By: Wynnefield Capital Management, LLC,
    its General Partner

By:  /s/ Joshua H. Landes
     ------------------------------------
     Joshua H. Landes, Co-Managing Member

WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.

By:  Wynnefield Capital, Inc.,
     its Investment Manager

By: /s/ Joshua H. Landes
    ------------------------------------
    Joshua H. Landes

<PAGE>

                                                               EXECUTION VERSION

                                                                       EXHIBIT A

                              PLAN OF DISTRIBUTION

      TransTechnology Corporation [or such defined term] is registering the
shares of common stock covered by this prospectus for the selling stockholders.
As used in this prospectus, "selling stockholders" includes the donees,
transferees, pledgees or others who may later hold the selling stockholders'
interests. Pursuant to a registration rights agreement, dated as of February 17,
2006, TransTechnology Corporation agreed to register the common stock owned by
the selling stockholders and to indemnify the selling stockholders against
certain liabilities related to the selling of the common stock, including
liabilities arising under the Securities Act. Under the registration rights
agreement, TransTechnology Corporation also agreed to pay the costs and fees of
registering the shares of common stock; however, the selling stockholders will
pay any brokerage commissions or underwriting discounts relating to the sale of
the shares of common stock.

      The selling stockholders may sell the common stock being offered hereby in
one or more of the following ways at various times:

      -     to underwriters for resale to the public or to institutional
            investors;

      -     directly to institutional investors; or

      -     through agents to the public or to institutional investors.

      The selling stockholder may offer its shares of common stock in one or
more offerings pursuant to one or more prospectus supplements, if required by
applicable law, and any such prospectus supplement will set forth the terms of
the relevant offering to the extent required. To the extent the shares of common
stock offered pursuant to a prospectus supplement remain unsold, the selling
stockholders may offer those shares of common stock on different terms pursuant
to another prospectus supplement.

      The selling stockholders will act independently of TransTechnology
Corporation in making decisions with respect to the timing, manner and size of
each sale. The selling stockholders may sell the common stock on any national
securities exchange on which the common stock may be listed and traded or
otherwise, at market prices prevailing at the time of sale, at prices related to
the prevailing market prices, or at negotiated prices. If underwriters are used
in the sale, the common stock will be acquired by the underwriters for their own
account and may be resold at various times in one or more transactions,
including negotiated transactions, at a fixed public offering price or prices,
which may be changed, at market prices prevailing at the time of sale, at prices
related to such prevailing market prices, or at negotiated prices. A
distribution of the common stock by the selling stockholders may also be
effected through the issuance by the selling

<PAGE>

                                                               EXECUTION VERSION

stockholders or others of derivative securities, including without limitation,
warrants, exchangeable securities, forward delivery contracts and the writing of
options.

      In addition, the selling stockholders may sell some or all of the shares
of common stock covered by this prospectus through:

      -     a block trade in which a broker-dealer will attempt to sell as
            agent, but may position or resell a portion of the block, as
            principal, in order to facilitate the transaction;

      -     purchases by a broker-dealer, as principal, and resale by the
            broker-dealer for its account;

      -     ordinary brokerage transactions and transactions in which a broker
            solicits purchasers; or

      -     privately negotiated transactions.

      The selling stockholders may also enter into hedging transactions. For
example, the selling stockholders may:

      -     enter into transactions with a broker-dealer or affiliate thereof in
            connection with which such broker-dealer or affiliate will engage in
            short sales of the common stock pursuant to this prospectus, in
            which case such broker-dealer or affiliate may use shares of common
            stock received from the selling stockholders to close out its short
            positions;

      -     sell common stock short itself and redeliver such shares to close
            out its short positions;

      -     enter into option or other types of transactions that require the
            selling stockholders to deliver common stock to a broker-dealer or
            an affiliate thereof, who will then resell or transfer the common
            stock under this prospectus; or

      -     loan or pledge the common stock to a broker-dealer or an affiliate
            thereof, who may sell the loaned shares or, in an event of default
            in the case of a pledge, sell the pledged shares pursuant to this
            prospectus.

      In addition, _____________ may enter into derivative or hedging
transactions with third parties, or sell securities not covered by this
prospectus to third parties in privately negotiated transactions. In connection
with such a transaction, the third parties may sell securities covered by and
pursuant to this prospectus and an applicable prospectus supplement. If so, the
third party may use securities borrowed from _____________ or others to settle
such sales and may use securities received from _____________ to close out any
related short positions. _____________ may also loan

<PAGE>

                                                               EXECUTION VERSION

or pledge securities covered by this prospectus and an applicable prospectus
supplement to third parties, who may sell the loaned securities or, in an event
of default in the case of a pledge, sell the pledged securities pursuant to this
prospectus and the applicable prospectus supplement.

      The applicable prospectus supplement will set forth the terms of the
offering of the common stock covered by this prospectus, including:

      -     the name or names of any underwriters, dealers or agents and the
            amounts of securities underwritten or purchased by each of them, if
            any; and

      -     the public offering price of the common stock and the proceeds to
            the selling stockholders and any discounts, commissions or
            concessions or other items constituting compensation allowed,
            reallowed or paid to underwriters, dealers or agents, if any.

      Any public offering price and any discounts, commissions, concessions or
other items constituting compensation allowed or rea5llowed or paid to
underwriters, dealers or agents may be changed from time to time.

      The selling stockholders may negotiate and pay broker-dealers'
commissions, discounts or concessions for their services. Broker-dealers engaged
by the selling stockholders may allow other broker-dealers to participate in
resales. The selling stockholders and any broker-dealers involved in the sale or
resale of the common stock may qualify as "underwriters" within the meaning of
Section 2(a)(11) of the Securities Act. In addition, the broker-dealers'
commissions, discounts or concessions may qualify as underwriters' compensation
under the Securities Act. If any the selling stockholders qualifies as an
"underwriter," it will be subject to the prospectus delivery requirements of
Section 5(b)(2) of the Securities Act.

      In addition to selling its common stock under this prospectus, the selling
stockholders may:

      -     agree to indemnify any broker-dealer or agent against certain
            liabilities related to the selling of the common stock, including
            liabilities arising under the Securities Act;

      -     transfer its common stock in other ways not involving market makers
            or established trading markets, including directly by gift,
            distribution, or other transfer;

      -     sell its common stock under Rule 144 of the Securities Act rather
            than under this prospectus, if the transaction meets the
            requirements of Rule 144; or

      -     sell its common stock by any other legally available means.

<PAGE>

                                                               EXECUTION VERSION

                                   SCHEDULE A

                  TINICUM CAPITAL PARTNERS II, L.P.
                  AND TINICUM CAPITAL PARTNERS II PARALLEL FUND, L.P.
                  C.O. TINICUM INCORPORATED
                  ATTENTION: ERIC RUTTENBERG
                  800 THIRD AVENUE
                  NEW YORK, NY 10022
                  FACSIMILE NO.: (212) 446-9333
                  EMAIL: ERUTTENBERG@TINICUM.COM

                        with copies to
                        Skadden, Arps, Slate, Meagher & Flom LLP
                        Four Times Square
                        New York, New York 10036-6522
                        Attention: Richard J. Grossman, Esq.
                        Facsimile No.: (212) 735-2000
                        Email: rgrossma@sckadden.com

                  TERRIER PARTNERS LP
                  ATTENTION: BOBBY MELNICK
                  145 E. 57TH STREET, 10TH FLOOR
                  NEW YORK, NY 10022
                  EMAIL: BDOGGY@BANET.NET

                  WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.,
                  WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P. I AND
                  WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.
                  C.O. WYNNEFIELD CAPITAL, INC.
                  ATTENTION: NELSON OBUS
                  450 SEVENTH AVENUE, SUITE 509
                  NEW YORK, NY 10123
                  FACSIMILE: (212) 760-0824
                  EMAIL: NOBUS@WYNNEFIELDCAPITAL.COM

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