Document:

Exhibit 10.5

JOINDER AGREEMENT

THIS JOINDER AGREEMENT
(this “Agreement”), dated as of February 7, 2007, is entered into
between AVIATION TECHNOLOGIES, INC., a Delaware corporation, AVTECH
CORPORATION, a Washington corporation, TRANSICOIL CORP., a Delaware
corporation, WEST COAST SPECIALTIES, INC., a Washington corporation, MALAYSIAN
AEROSPACE SERVICES, INC., a Delaware corporation (each a “New Subsidiary”
and collectively, the “New Subsidiaries”) and CREDIT SUISSE, as Agent,
under that certain Credit Agreement, dated as of June 23, 2006, as amended by
Amendment No. 1, dated as of January 25, 2007, and as amended from time to time
(as amended, the “Credit Agreement”), among TransDigm Inc., a Delaware
corporation (the “Borrower”), TransDigm Group Incorporated, a Delaware
corporation, the Subsidiaries of the Borrower from time to time party thereto,
the Lenders from time to time party thereto and the Agent.  All capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Credit Agreement.

Each New Subsidiary and
the Agent, for the benefit of the Lenders, hereby agrees as follows:

1.             Each New Subsidiary hereby acknowledges, agrees and
confirms that, by its execution of this Agreement, each New Subsidiary will be
deemed to be a Loan Party under the Credit Agreement and a Loan Guarantor for
all purposes of the Credit Agreement and shall have all of the obligations of a
Loan Party and a Loan Guarantor thereunder as if it had executed the Credit
Agreement.  Each New Subsidiary hereby
ratifies, as of the date hereof, and agrees to be bound by, all of the terms,
provisions and conditions contained in the Credit Agreement, including without
limitation (a) all of the representations and warranties of the Loan Parties
set forth in Article III of the Credit Agreement (to the extent made or deemed
made on or after the effective date hereof), (b) all of the covenants set forth
in Articles V and Vl of the Credit Agreement and (c) all of the guaranty
obligations set forth in the Guarantee and Collateral Agreement.  Without limiting the generality of the
foregoing terms of this paragraph 1, each New Subsidiary, subject to the
limitations set forth in the Guarantee and Collateral Agreement, hereby
absolutely and unconditionally guarantees, jointly and severally with the other
Loan Guarantors, to the Agent and the Lenders, the prompt payment of the
Secured Obligations in full when due (whether at stated maturity, upon
acceleration or otherwise) to the extent of and in accordance with Guarantee and
Collateral Agreement.

2.             If required, each New Subsidiary is, simultaneously with
the execution of this Agreement, executing and delivering such Collateral
Documents (and such other documents and instruments) as requested by the Agent
in accordance with the Credit Agreement.

3.             Each New Subsidiary hereby waives acceptance by the
Agent and the Lenders of the guaranty by each New Subsidiary upon the execution
of this Agreement by each New Subsidiary.

4.             This Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument.

5.             THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

[Signature
Page Follows]

 

 

IN WITNESS WHEREOF, each
New Subsidiary has caused this Agreement to be duly executed by its authorized
officer, and the Agent, for the benefit of the Lenders, has caused the same to
be accepted by its authorized officer, as of the day and year first above
written.

	
  

  	
  AVIATION
  TECHNOLOGIES, INC.

  
	
   

  	
  AVTECH CORPORATION

  
	
   

  	
  TRANSICOIL CORP.

  
	
   

  	
  WEST COAST
  SPECIALTIES, INC.

  
	
   

  	
  MALAYSIAN
  AEROSPACE SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by:

  	
  /s/ Gregory Rufus

  	
   

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title:  Secretary and Treasurer

  
	
   

  	
   

  
	
   

  	
  Acknowledged and accepted:

  
	
   

  	
   

  
	
   

  	
  CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as

  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Jay Chall

  	
   

  
	
   

  	
   

  	
  Name: Jay Chall

  
	
   

  	
   

  	
  Title:  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
  /s/ Laurence Lapeyre

  	
   

  
	
   

  	
   

  	
  Name: Laurence
  Lapeyre

  
	
   

  	
   

  	
  Title: Associate

  

 

 

Signature
PageJoint AgreementExhibit 10.4

THIS
OPTION AND THE SHARES OF STOCK UNDERLYING THIS OPTION HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED UNTIL
EITHER (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO OR (ii)
THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
AND ITS COUNSEL THAT REGISTRATION UNDER THE SECURITIES ACT OR THE STATE
SECURITIES LAWS IS NOT REQUIRED.  THE
OPTIONEE UNDERSTANDS THAT THE COMPANY IS UNDER NO OBLIGATION TO REGISTER,
QUALIFY, OR LIST THIS OPTION OR THE SHARES UNDERLYING THIS OPTION WITH THE
SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION, OR ANY
STOCK EXCHANGE.

	
  NONQUALIFIED STOCK OPTION AGREEMENT

  FOR EXECUTIVES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OPTIONEE’S NAME

  	
   

  	
   

  

 

Nuestra
Tarjeta de Servicios, Inc.,
a Georgia corporation (the “Company”), hereby grants to the optionee named
above (the “Optionee”) an option (this “Option”) to purchase the total number
of shares shown below of Common Stock of the Company (the “Shares”) at the
exercise price per share set forth below (the “Exercise Price”), subject to all
of the terms and conditions set forth in this Stock Option Agreement (“Agreement”).

	
  In Witness Whereof, this Agreement has
  been executed by the Company by a duly authorized officer effective as of the
  date of grant.

  	
   

  	
  The Optionee hereby acknowledges receipt of a copy of
  the terms and conditions forming a part of this Agreement, represents that he
  or she has read and understands the terms and conditions of this Agreement,
  and accepts this Option subject to all the terms and conditions of this
  Agreement. The Optionee acknowledges that there may be adverse tax
  consequences upon exercise of this Option or disposition of the Shares and
  that he or she should consult a tax adviser prior to such exercise or
  disposition.

  	
   

  	
  Shares subject to issuance under this Option shall be
  eligible for exercise according to the following vesting schedule, subject to
  the terms and conditions set forth in this Agreement:

  
	
  Nuestra Tarjeta de Servicios,
  Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  This
  Option is not an Incentive Stock Option.

  	
   

  	
   

  	
   

  
	
  Name: Drew W. Edwards

  	
   

  	
  No.
  of Shares Subject to Option:

  	
   

  	
   

  	
  Vesting
  Schedule

  
	
  Title: Chief Executive
  Officer 

  	
   

  	
  Exercise
  Price Per Share:

  	
   

  	
   

  	
  Date

  	
  No. of Shares

  
	
  Optionee

  	
   

  	
  Expiration
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Date
  of Grant:

  	
   

  	
   

  	
   

  	
   

  
	
  Optionee Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

This is not a stock certificate or a
negotiable instrument

 

 

NONQUALIFIED
STOCK OPTION AGREEMENT

ADDITIONAL TERMS AND CONDITIONS

1.             Definitions. 
As used in this Agreement, the
following terms have the following meanings unless the context clearly
indicates to the contrary:

“Board” means the Board
of Directors of the Company.

“Code” means the United States Internal
Revenue Code of 1986, including effective date and transition rules (whether or
not codified).  Any reference herein to a
specific section of the Code shall be deemed to include a reference to any
corresponding provision of future law.

“Committee” means a committee of at least two
Directors appointed from time to time by the Board, having the duties and
authority set forth herein in addition to any other authority granted by the
Board; provided, however, that with respect to any Options or Awards granted to
an individual who is also a Section 16 Insider, the Committee shall consist of
either the entire Board of Directors or a committee of at least two Directors
(who need not be members of the Committee with respect to Options or Awards
granted to any other individuals) who are Non-Employee Directors, and all
authority and discretion shall be exercised by such Non-Employee Directors, and
references herein to the “Committee” means such Non-Employee Directors insofar
as any actions or determinations of the Committee shall relate to or affect
Options or Awards made to or held by any Section 16 Insider. In selecting the
Committee, the Board shall also consider the benefits under Section 162(m) of
the Code of having a Committee composed of “outside directors” (as that term is
defined in the Code) for certain grants of Options to highly compensated
executives.  At any time that the Board
shall not have appointed a committee as described above, any reference herein to
the Committee means a reference to the Board.

“Corporate Transaction” means any of the
following transactions to which the Company is a party:

(a)           a merger, consolidation, share
exchange, combination or other transaction or series of transactions (other
than a public offering by the Company for cash of the Company’s capital stock,
debt or other securities) in which securities possessing more than 50% of the
total combined voting power of the Company’s outstanding securities are
transferred to a person or persons different from the persons holding those
securities immediately prior to such transaction;

(b)           the sale, transfer
or other disposition of all or substantially all of the Company’s assets;

(c)           the 
liquidation or dissolution of the Company; or

(d)           A change in the composition of the
Board as a result of which fewer than one-half of the incumbent directors are
directors who either:

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(i)            Had
been directors of the Company 24 months prior to such change; or

(ii)           Were
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of the directors who had been directors of the Company 24
months prior to such change and who were still in office at the time of the
election or nomination.

“Director” means a member of the Board and any
person who is an advisory or honorary director of the Company if such person is
considered a director for the purposes of Section 16 of the Exchange Act, as
determined by reference to such Section 16 and to the rules, regulations,
judicial decisions, and interpretative or “no-action” positions with respect
thereto of the SEC, as the same may be in effect or set forth from time to
time.

“Exchange Act” means the Securities Exchange Act
of 1934.  Any reference herein to a
specific section of the Exchange Act shall be deemed to include a reference to
any corresponding provision of future law.

“Fair Market Value” on any date means (i) the
closing sales price of the Stock on such date on the national securities
exchange having the greatest volume of trading in the Stock during the thirty-day
period preceding the day the value is to be determined or, if such exchange was
not open for trading on such date, the next preceding date on which it was
open; (ii) if the Stock is not traded on any national securities exchange, the
average of the closing high bid and low asked prices of the Stock on the over-the-counter
market on the day such value is to be determined, or in the absence of closing
bids on such day, the closing bids on the next preceding day on which there
were bids; or (iii) if the Stock also is not traded on the over-the-counter
market, the fair market value as determined in good faith by the Board or the
Committee based on such relevant facts as may be available to the Board, which
may include opinions of independent experts, the price at which recent sales
have been made, the book value of the Stock, and the Company’s current and
anticipated future earnings.

“Non-Employee Director” shall have the meaning
set forth in Rule 16b-3 under the Exchange Act, as the same may be in effect
from time to time, or in any successor rule thereto, and shall be determined
for all purposes under this Agreement according to interpretative or “no-action”
positions with respect thereto issued by the SEC.

“Purchasable” refers to Stock which may be
purchased by the Optionee under the terms of this Agreement on or after a
certain date specified in the Agreement.

“Qualified Domestic Relations Order” has the
meaning set forth in the Code or in the Employee Retirement Income Security Act
of 1974, or the rules and regulations promulgated under the Code or such Act.

“Retirement” shall mean the retirement of the
Optionee at the normal retirement date as prescribed from time to time by the
Company or any Subsidiary.

“Stock” means the Common Stock, par value
$0.01 per share, of the Company or, in the event that the outstanding shares of
Stock are hereafter changed into or exchanged for shares of a different stock
or securities of the Company or some other entity, such other stock or securities.

“Subsidiary” means any corporation (other
than the Company) in an unbroken chain of corporations beginning with the
Company if, at the time of the grant (or modification) of the Option, each of
the corporations other than the last corporation in the unbroken chain owns
stock possessing fifty 

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percent (50%) or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

2.             Administration.

(a)           Duties and Powers of the Committee.  This Agreement shall be administered by the
Committee.  The Committee shall select
one of its members as its Chairman and shall hold its meetings at such times
and places as it may determine.  The
Committee shall keep minutes of its meetings and shall make such rules and regulations
for the conduct of its business as it may deem necessary.  The Committee shall have the power to act by
unanimous written consent in lieu of a meeting, and to meet telephonically.  In administering this Agreement, the
Committee’s actions and determinations shall be binding on all interested
parties.  The Committee shall have the
authority to amend or modify this Agreement, or to waive any provision thereof,
provided that the Optionee consents to such action.

(b)           Interpretation; Rules.  Subject to the express provisions of this
Agreement, the Committee also shall have complete authority to interpret this
Agreement, to prescribe, amend, and rescind rules and regulations relating to
it, and to make all other determinations necessary or advisable for the
administration of this Agreement, including, without limitation, the amending
or altering of this Agreement as may be required to comply with or to conform
to any federal, state, or local laws or regulations.

(c)           No Liability. 
Neither any member of the Board nor any member of the Committee shall be
liable to Optionee or any other person for any act or determination made in
good faith with respect to this Agreement.

3.             Exercise Terms. 
The Optionee must exercise the Option for at least the lesser of 100
shares or the number of shares of Purchasable Stock as to which the Option
remains unexercised.  If this Option is
not exercised with respect to all or any part of the shares subject to this
Option prior to its expiration, the shares with respect to which this Option
was not exercised shall no longer be subject to this Option.

4.             Termination of Employment. The treatment of
Optionee’s options in the event of termination of employment shall be governed
by the terms of Optionee’s employment agreement, if any.

5.             Restrictions on Transferability.  No Option shall be transferable by an
Optionee other than by will or the laws of descent and distribution or pursuant
to a Qualified Domestic Relations Order.  
During the lifetime of an Optionee, Options shall be exercisable only by
such Optionee (or by such Optionee’s guardian or legal representative, should
one be appointed).

6.             Notice of Exercise.  This Option may be exercised by the Optionee,
by a written notice signed by the Optionee and delivered or mailed to the
Company as specified in this Agreement to the attention of the President or
such other officer as the Company may designate.  Any such notice shall (a) specify the number
of shares of Stock which the Optionee then elects to purchase hereunder, (b)
contain such information as may be reasonably required by the Company pursuant
to this Agreement, and (c) be accompanied by (i) a certified or cashier’s check
payable to the Company in payment of the total Exercise Price applicable to
such shares as provided herein, (ii) shares of stock owned by the Optionee and
duly endorsed or accompanied by stock transfer powers having a Fair Market
Value equal to the total Exercise Price applicable to such shares purchased
hereunder, or (iii) a certified or cashier’s check accompanied by the number of
shares of stock where Fair Market Value when added to the amount of the check
equal the total Exercise Price applicable to such shares purchased
hereunder.  In addition to and at the time of payment of the Exercise Price, the
Optionee shall pay to the Company the full amount of any federal, state, 

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and local income, employment,
or other withholding taxes applicable to the taxable income of such Optionee
resulting from such exercise. Upon receipt of any such notice and accompanying payment, and subject
to the terms hereof, the Company agrees to issue to the Optionee stock
certificates for the number of shares specified in such notice registered in
the name of the person exercising this Option. 
In the event of the Optionee’s death or Disability, the Option may be
exercised as described above by, and the Option shall be granted in the name
of, the Optionee’s administrators, executors or personal representatives.

7.             Forfeiture.

(a)           If, at any time within the later of (i) one year after
termination of the Optionee’s employment or (ii) one year after the Optionee’s
exercise of any portion of this Option, the Optionee engages in any of the
Forfeiture Activities described below, then (1) this Option shall terminate
effective the date on which the Optionee enters into such activity, unless
terminating sooner by operation of another term or condition of this Agreement,
and (2) any Option Gain realized by the Optionee from exercising all or a
portion of this Option shall be paid by the Optionee to the Company.  “Forfeiture Activity” shall include the
marketing of bank services targeted to the unbanked Latino market for a
competitor of the Company, or any of its subsidiaries, within the State of
Georgia, where the Optionee works.  “Option
Gain” shall mean the gain represented by the mean market price on the date of
exercise over the Exercise Price, multiplied by the number of shares purchased
through exercise of the Option, without regard to any subsequent market price
decrease or increase. The forfeiture provisions described in this Section shall
apply even if the Company does not elect otherwise to enforce the employment
agreement or take other action against the Optionee, but shall not apply if
termination of the Optionee’s employment with the Company occurs in connection
with or following a Corporate Transaction involving the Company.

(b)           By accepting this Agreement, the Optionee consents to a
deduction from any amounts the Company owes the Optionee from time to time
(including amounts owed as wages or other compensation, fringe benefits, or
vacation pay), to the extent of the amounts the Optionee owes the Company under
this Section.  Whether or not the Company
elects to make any set-off in whole or in part, if the Company does not recover
by means of set-off the full amount owed by the Optionee to the Company,
calculated as set forth above, the Optionee shall pay immediately the unpaid
balance to the Company.  The Optionee
hereby appoints the Company as its attorney-in-fact to execute any documents or
do any acts necessary to exercise its rights under this Section.

(c)           The Optionee may be released from its obligations under
this Section only if the Board or the Committee determines in its sole
discretion that such action is in the best interests of the Company.

8.             Vesting and Exercise of Shares.  This Option shall vest and become exercisable
in accordance with the vesting schedule set forth on the front of this
Agreement and as provided in Section 4 of this Agreement, if the Option has not
been terminated prior to such date pursuant to the terms of this
Agreement.   After vesting, except as
otherwise provided in Section 4, the Option may be exercised with respect to
the vested shares at any time until the Expiration Date if the Option has not
been terminated prior to such date pursuant to the terms of this Agreement.

9.             Compliance with Regulatory Matters.  The Optionee acknowledges that the issuance
of capital stock of the Company is subject to limitations imposed by federal
and state law and the Optionee hereby agrees that the Company shall not be
obligated to issue any shares of Stock upon exercise of this Option that would
cause the Company to violate any law or any rule, regulation, order or consent
decree of any regulatory authority (including without limitation the Securities
and Exchange Commission) having jurisdiction over the affairs of the
Company.  The Optionee agrees that he or
she will provide the 

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Company with such information as is reasonably
requested by the Company or its counsel to determine whether the issuance of
stock complies with the provisions described by this Section.

10.           Antidilution.

(a)           If (i) the outstanding shares of Stock are changed into or
exchanged for a different number or kind of shares or other securities of the Company
by reason of merger, consolidation, reorganization, recapitalization,
reclassification, combination or exchange of shares, or stock split or stock
dividend, or (ii) any spin off, spin out or other distribution of assets
materially affects the price of the Company’s stock, then the rights of
Optionee (concerning the number of shares subject to Options and the Exercise
Price) under this Agreement shall be adjusted proportionately by the Committee.

(b)           If the Company shall be a party to any reorganization in
which it does not survive, involving merger, consolidation, or acquisition of
the stock or substantially all the assets of the Company, the Committee, in its
discretion, may:

(i)            declare
that all Options granted under this Agreement shall become exercisable
immediately notwithstanding the provisions of this Agreement regarding
exercisability, and that all such Options shall terminate 30 days after the
Committee gives written notice of the immediate right to exercise all such
Options and of the decision to terminate all Options not exercised within such
30-day period; and/or

(ii)           notify
Optionee that all Options granted under this Agreement shall be assumed by the
successor corporation or substituted on an equitable basis with options issued
by such successor corporation.

(c)           If the Company is to be liquidated or dissolved in
connection with a reorganization described in Section 10(b), the provisions of
such Section 10(b) shall apply.  In all
other instances, the adoption of a plan of dissolution or liquidation of the
Company shall, notwithstanding other provisions hereof, cause all Options
outstanding under this Agreement to terminate to the extent not exercised prior
to the adoption of the plan of dissolution or liquidation by the shareholders,
provided that, notwithstanding other provisions hereof, the Committee may
declare all Options granted under this Agreement to be exercisable at any time
on or before the fifth (5th) business day
following such adoption notwithstanding the provisions of this Agreement
regarding exercisability.

(d)           The
adjustments described in paragraphs (a) through (c) of this Section 10, and the
manner of their application, shall be determined solely by the Committee, and
any such adjustment may provide for the elimination of fractional share
interests.  The adjustments required
under this Section 9 shall apply to any successors of the Company and shall be
made regardless of the number or type of successive events requiring such
adjustments.

11.           Miscellaneous.

(a)           This agreement shall be binding upon the parties hereto
and their representatives, successors and assigns.

(b)           This Agreement is executed and delivered in, and shall be
governed by the laws of, the State of Georgia.

(c)           Any requests or notices to be given hereunder shall be
deemed given, and any elections or exercises to be made or accomplished shall
be deemed made or accomplished, upon actual 

 5
 

delivery thereof to the designated recipient, or
three days after deposit thereof in the United States mail, registered, return
receipt requested and postage prepaid, addressed, if to the Optionee, at the
address set forth on the reverse side of this Stock Option Certificate and, if
to the Company, to the address of its then current executive offices.

(d)           This Agreement may not be modified except in writing
executed by each of the parties hereto.

(e)           The Optionee shall not
have any of the rights of a shareholder with respect to the shares of Stock
subject to the Option until such shares have been issued and transferred to the
Optionee upon the exercise of the Option.

(f)            This Option does not confer upon the Optionee any right
with respect to continuance of employment by the Company or by any of its
Subsidiaries.  This Option shall not be
affected by any change of employment so long as the Optionee continues to be an
employee of the Company or one of its Subsidiaries.

(g)           If any provision of this Agreement should be held to be
invalid, illegal or unenforceable, then such provision shall be construed in
such a way as to make such provision enforceable, or this Agreement shall be
construed as if such provision had never been contained herein, and such
invalidity, illegality or unenforceability shall not affect any other provision
hereof.

 

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