Document:

Exhibit 4.2

 

[FORM
OF NOTE]

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS tWRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS
OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE
REVERSE HEREOF.

 

1

 

 

TRANSDIGM
INC.

No.                                                                                                                                                  $

8 3/8%
SENIOR SUBORDINATED NOTES DUE 2011

TRANSDIGM
INC., a Delaware corporation promises to pay to “Cede & Co.”, or
registered assigns, the principal sum of
              Dollars
on July 15, 2011.

Interest Payment Dates:  January 15 and July 15.

Record Dates:  January 1 and July 1.

Reference is made to the further provisions
of this Note contained herein, which will for all purposes have the same effect
as if set forth at this place.

 

 

2

 

Dated: 

 

 

	
  TRANSDIGM,
  INC.,

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

	
  THE
  BANK OF NEW YORK,

  as Trustee, certifies that this is one of the Notes referred to in the

  within-mentioned Indenture.

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

3

 

[FORM OF REVERSE SIDE OF NOTE]

8 3/8% SENIOR SUBORDINATED NOTES DUE 2011

Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

1.             Interest.
TransDigm Inc., a Delaware corporation (such corporation, and its successors
and assigns under the Indenture, being herein called the “Company”), promises to pay
interest on the principal amount of this Note at 8 3/8% per annum from
July 22, 2003 until maturity; [provided that if a Registration Default
(as defined in the Registration Rights Agreement) occurs, additional interest
(the “Additional
Interest”) of $0.05 per week per $1,000 principal amount of Notes
will accrue on the Notes for the first 90-day period immediately following the
occurrence of a Registration Default (increasing by an additional $0.05 per
week per $1,000 principal amount of Notes with respect to each subsequent
90-day period until all Registration Defaults have been cured, up to a maximum
additional interest rate of 2.00% per annum)](1). The Company shall pay
interest [and Additional Interest] semi-annually on January 15 and July 15
of each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each an “Interest Payment Date”). Interest on the
Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided, further, that the first Interest Payment Date
shall be January 15, 2004. The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand at a rate that is
equal to the interest rate on the Note then in effect; it shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest [and Additional Interest] (without regard
to any applicable grace periods) from time to time on demand at the same rate
to the extent lawful. Interest will be computed on the basis of a 360-day year
of twelve 30-day months.

2.             Method of Payment.
The Company will pay interest on the Notes (except defaulted interest) [and
Additional Interest, if any] to the Persons who are registered Holders of Notes
at the close of business on the January 1 or July 1 next preceding
the Interest Payment Date, even if such Notes are canceled after such record
date and on or before such Interest Payment Date, except as provided in Section
2.12 of the Indenture with respect to defaulted interest. The Notes will be
payable as to principal, premium and interest [and Additional Interest, if
any,] at the office or agency of the Company maintained for such purpose within
or without the City and State of New York, or, at the option of the Company,
payment of interest [and Additional Interest, if any,]

 

 

_________________________

(1.)
Insert if at the date of issuance of the Exchange Note or Private Exchange Note
(as the case may be) any Registration Default has occurred with respect to the
related Initial Notes during the interest period in which such date of issuance
occurs. 

4

 

 

may
be made by check mailed to the Holders at their addresses set forth in the
register of Holders, and provided that payment by wire transfer of immediately
available funds will be required with respect to principal of and interest,
premium and Additional Interest, if any, on, all Global Notes and all other
Notes the Holders of which shall have provided wire transfer instructions to
the Company or the Paying Agent. Such payment shall be in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts.

3.             Paying Agent and Registrar.
Initially, The Bank of New York, the Trustee under the Indenture, will act as
Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Subsidiaries
may act in any such capacity.

4.             Indenture. The
Company issued the Notes under an Indenture dated as of July 22, 2003 (“Indenture”)
among the Company, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§
77aaa-77bbbb). The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are obligations of the Company.

5.             Subordination.
The Notes are subordinated to Senior Debt of the Company, as defined in the
Indenture.  To the extent provided in
the Indenture, Senior Debt of the Company must be paid before the Notes may be
paid.  The Company agrees, and each
Holder by accepting a Note agrees, to the subordination provisions contained in
the Indenture and authorizes the Trustee to give it effect and appoints the
Trustee as attorney-in-fact for such purpose.

6.             Optional
Redemption.

Except as provided in
Section 6(b) hereof, the Notes shall not be redeemable at the Company’s
option prior to July 15, 2006. Thereafter, the Notes shall be subject to
redemption at any time at the option of the Company, in whole or in part, upon
not less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed as percentages of principal amount thereof) set forth below plus
accrued and unpaid interest [and Additional Interest] thereon, if any, to the
applicable redemption date, if redeemed during the twelve month period
commencing on July 15 of the year set forth below:

	
                  Year

  	
  Percentage
  of Principal    Amount   

  
	
  2006

  	
             106.281%

  
	
  2007

  	
             104.188%

  
	
  2008

  	
             102.094%

  
	
  2009
  and thereafter

  	
             100.000%

  

 

 

5

 

 

(a)           Notwithstanding the foregoing prior to July 15, 2006,
the Company may at its option on one or more occasions redeem Notes (which
includes Additional Notes, if any) in an aggregate principal amount not to
exceed 35% of the aggregate principal amount of the Notes (which includes
Additional Notes, if any) originally issued at a redemption price (expressed as
a percentage of principal amount) of 108.375%, plus accrued and unpaid interest
[and Additional Interest, if any,] to the redemption date, with the net cash
proceeds from one or more Equity Offerings; provided, however, that (1) at least 65%
of such aggregate principal amount of Notes (which includes Additional Notes,
if any) remains outstanding immediately after the occurrence of each such
redemption (other than Notes held, directly or indirectly, by the Company or
its Affiliates); and (2) each such redemption occurs within 60 days after the
date of the related Equity Offering.

7.             Mandatory
Redemption.  The Company
shall not be required to make any mandatory redemption or sinking fund payments
with respect to the Notes.

8.             Repurchase
at Option of Holder.

If a Change of Control
occurs, each Holder shall have the right to require that the Company purchase
all or a portion of such Holder’s Notes pursuant to the offer described in the
Indenture (the “Change of Control Offer”), at a purchase price equal to 101%
of the principal amount thereof plus accrued interest [and Additional Interest,
if any,] to the date of purchase. Within 30 days following the date upon which
the Change of Control occurred, the Company must send, by first class mail, a
notice to each Holder, which notice shall govern the terms of the Change of
Control Offer. Such notice shall state, among other things, the purchase date,
which must be no earlier than 30 days nor later than 60 days from the date such
notice is mailed, other than as may be required by law (the “Change of
Control Payment Date”). Holders electing to have a Note purchased
pursuant to a Change of Control Offer shall be required to surrender the Note,
with the form entitled “Option of Holder to Elect Purchase” on the reverse of
the Note completed, to the Paying Agent at the address specified in the notice
prior to the close of business on the third Business Day prior to the Change of
Control Payment Date.

(b)           If the Company or a Restricted Subsidiary consummates any
Asset Sales, under certain circumstances the Company is required to commence an
offer to all Holders of Notes (as “Net Proceeds Offer”) pursuant to Section
3.09 of the Indenture.  The Net Proceeds
Offer may also be made to holders of other Senior Subordinated Debt of the
Company or a Restricted Subsidiary of the Company requiring the making of such
an offer.  Pursuant to the Net Proceeds
Offer, the Company shall offer to purchase, on a pro rata basis, the maximum
amount of Notes and, if it so elects, such other Senior Subordinated Debt that
may be purchased with the Net Proceeds Offer Amount (as defined in the
Indenture) at a price equal to 100% of their 
principal amount (or, in the event such other Senior Subordinated Debt
was issued with significant original issue discount, 100% of the accreted value
thereof) plus accrued and unpaid interest [and Additional Interest] thereon,
[if any,] to the purchase date, in accordance with the procedures set forth in
the Indenture (or, in respect of such other Senior Subordinated Debt, such
lesser price, if any, as may be provided for by the terms of such Senior 

 

6

Subordinated Debt).  To the extent that the aggregate amount of Notes or such other
Senior Subordinated Debt tendered pursuant to a Net Proceeds Offer is less than
the Net Proceeds Offer Amount, the Company (or such Subsidiary) may use such
deficiency for general corporate purposes or for any other purpose not
prohibited by the Indenture. If the aggregate principal amount of Notes or such
other Senior Subordinated Debt surrendered by holders thereof exceeds the
amount of Net Proceeds Offer Amount, the Trustee shall select the Notes to be
purchased on a pro rata basis. Holders of Notes that are the subject of an
offer to purchase will receive a Net Proceeds Offer from the Company prior to
any related purchase date and may elect to have such Notes purchased by
completing the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Notes.

9.             Notice of Redemption.
Notice of redemption will be mailed at least 30 days but not more than 60 days
before the redemption date to each Holder whose Notes are to be redeemed at its
registered address. Notes in denominations larger than $1,000 may be redeemed
in part but only in whole multiples of $1,000, unless all of the Notes held by
a Holder are to be redeemed. On and after the redemption date interest ceases
to accrue on Notes or portions thereof called for redemption.

10.           Denominations, Transfer,
Exchange. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the Indenture.
The Company need not exchange or register the transfer of any Note or portion
of a Note selected for redemption, except for the unredeemed portion of any
Note being redeemed in part. Also, the Company need not exchange or register
the transfer of any Notes during a period beginning at the opening of business
15 days before the day of the mailing of notice of redemption and ending
at the close of business on such day or during the period between a record date
and the next succeeding Interest Payment Date.

11.           Persons Deemed Owners.
The registered Holder of a Note may be treated as its owner for all purposes.

12.           Amendment, Supplement and
Waiver. Subject to certain exceptions, the Indenture, the Guarantees
or the Notes may be amended or supplemented with the consent of the Holders of
at least a majority in principal amount of the then outstanding Notes, if any,
voting as a single class, and any existing default or compliance with any
provision of the Indenture, the Guarantees or the Notes may be waived with the
consent of the Holders of a majority in principal amount of the then
outstanding Notes, if any, voting as a single class. Without the consent of any
Holder of a Note, the Indenture, the Guarantees or the Notes may be amended or
supplemented, to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes or to
alter the provisions of Article 2 of the Indenture or the Appendix to the
Indenture relating to the form of the Notes (including the related definitions)
in a manner that does not adversely affect any Holder, to provide for the
assumption of the 

 

7

Company’s
or any Guarantor’s obligations to Holders of the Notes in case of a merger or
consolidation, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture of any such Holder, to comply with the
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the Trust Indenture Act, to provide for the issuance of Notes
issued after the Issue Date in accordance with the limitations set forth in the
Indenture, or to allow any Guarantor to execute a supplemental indenture to the
Indenture and/or a Guarantee with respect to the Notes.

13.           Defaults and Remedies.  Events
of Default include: (i) the failure to pay interest [or Additional
Interest, if any,] on any Notes when the same becomes due and payable if the
default continues for a period of 30 days (whether or not such payment shall be
prohibited by Article 10 or Article 12 of the Indenture);
(ii) the failure to pay the principal on any Notes when such principal
becomes due and payable, at maturity, upon redemption or otherwise (including
the failure to make a payment to purchase Notes tendered pursuant to a Change
of Control Offer or a Net Proceeds Offer on the date specified for such payment
in the applicable offer to purchase) (whether or not such payment shall be
prohibited by Article 10 or Article 12 of the Indenture);
(iii) a default in the observance or performance of any other covenant or
agreement contained in the Indenture if the default continues for a period of
30 days after the Company receives written notice specifying the default
(and demanding that such default be remedied) from the Trustee or the Holders
of at least 25% of the outstanding principal amount of the Notes (except in the
case of a default with respect to Section 5.01 or Section 11.06 of
the Indenture, which will constitute an Event of Default with such notice
requirement but without such passage of time requirement); (iv) the
failure to pay at final stated maturity (giving effect to any applicable grace
periods and any extensions thereof) the principal amount of any Indebtedness of
the Company or any Significant Subsidiary of the Company (other than a
Securitization Entity) or the acceleration of the maturity of any such
Indebtedness, if the aggregate principal amount of such Indebtedness, together
with the principal amount of any other such Indebtedness in default for failure
to pay principal at final maturity or which has been accelerated, aggregates
$10.0 million or more at any time; (v) one or more judgments in an
aggregate amount in excess of $10.0 million shall have been rendered
against the Company or any of its Significant Subsidiaries and such judgments
remain undischarged, unpaid or unstayed for a period of 60 days after such
judgment or judgments become final and non-appealable; and (vi) certain events
of bankruptcy affecting the Company or any of its Significant Subsidiaries. If
any Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Notes may declare all the
Notes to be due and payable. Notwithstanding the foregoing, in the case of an
Event of Default arising from certain events of bankruptcy with respect to the
Company, all outstanding Notes will become due and payable without further
action or notice. Holders may not enforce the Indenture or the Notes except as
provided in the Indenture. Subject to certain limitations, Holders of a
majority in principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of principal or
interest [or Additional Interest]) if it determines that withholding notice is
in their interest. The Holders of a majority in 

 

8

aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes waive any existing Default or Event
of Default and its consequences under the Indenture except a continuing Default
or Event of Default in the payment of interest [(including Additional Interest,
if any)] on, or the principal of, the Notes. The Company is required to deliver
to the Trustee annually a statement regarding compliance with the Indenture,
and the Company is required upon becoming aware of any Default or Event of
Default, to deliver to the Trustee a statement specifying such Default or Event
of Default.

14.           Guarantee.  The
payment by the Company of the principal of, and premium and interest
[(including Additional Interest, if any)] on, the Notes is fully and
unconditionally guaranteed on a joint and several senior subordinated basis by
each of the Guarantors.

15.           Trustee Dealings with
Company. The Trustee, in its individual or any other capacity, may
make loans to, accept deposits from, and perform services for the Company or
its Affiliates, and may otherwise deal with the Company or its Affiliates, as
if it were not the Trustee.

16.           No Recourse Against Others.
A past, present or future director, officer, employee, incorporator or
stockholder of Parent, the Company or any Subsidiary of the Company (other than
the Company, Parent or any Subsidiary of the Company that is a Guarantor), as
such, shall not have any liability for any obligations of Parent, the Company
or any Subsidiary of the Company under the Notes, the Guarantees or the
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

17.           Authentication.
This Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

18.           Abbreviations.
Customary abbreviations may be used in the name of a Holder or an assignee,
such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties),
JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (=Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

19.           CUSIP and ISIN Numbers.
Pursuant to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures, the Company has caused CUSIP and ISIN numbers to be
printed on the Notes and the Trustee may use CUSIP or ISIN numbers in notices
of redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any
notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

 

9

 

The
Company will furnish to any Holder upon written request and without charge a
copy of the Indenture and/or the Registration Rights Agreement. Requests may be
made to:

TransDigm Inc.

26380 Curtis Wright Parkway

Richmond Heights, Ohio  44143

Attention:  Corporate Secretary

 

 

10

 

 

___________________________________________________________________

ASSIGNMENT FORM

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

 

                (Print
or type assignee’s name, address and zip code)

 

                (Insert
assignee’s soc. sec. or tax I.D. No.)

 

 

and irrevocably
appoint                           agent
to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

 

___________________________________________________________

 

Date: ________________ Your
Signature:_____________________

 

___________________________________________________________

 

Sign exactly as your name appears on the
other side of this Note.

 

11

 SCHEDULE OF INCREASES OR
DECREASES IN GLOBAL NOTE

                                   The
following increases or decreases in this Global Note have been made:

 

	
  Date
  of

  Exchange

  	
   

  	
  Amount of decrease in Principal 
  amount of this Global Note

  	
   

  	
  Amount of increase in Principal amount of this Global Note 

  	
   

  	
  Principal amount of this Global Note following such decrease or
  increase)

  	
   

  	
  Signature of authorized officer of Trustee or Custodian for the Notes

  

 

12

 

OPTION OF HOLDER TO ELECT PURCHASE

If
you want to elect to have this Note purchased by the Company pursuant to
Section 4.10 or 4.15 of the Indenture, check the box:

o

If
you want to elect to have only part of this Note purchased by the Company
pursuant to Section 4.10 or 4.15 of the Indenture, state the amount in
principal amount:  $·

Date: _______________                   Your
Signature:                    __________________

(Sign exactly as
your name

appears on the other side of
 this Security.)

 

Signature
Guarantee: ___________________________________________________________________
                                                                                  (Signature must be guaranteed)

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such other “signature guarantee program” as may
be determined by the Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended

 

13EXHIBIT 4.3

 

$400,000,000

 

TD Funding Corporation

 

83/8% Senior Subordinated Notes Due 2011

 

REGISTRATION RIGHTS AGREEMENT

 

July 22,
2003

 

CREDIT SUISSE FIRST  BOSTON  LLC

Banc of America Securities LLC

UBS Securities LLC

c/o Credit Suisse First Boston LLC

Eleven Madison Avenue,

New York, New York  10010-3629

 

Dear Sirs:

 

TD Funding
Corporation, a Delaware corporation (the “Company”), proposes to issue and sell to
Credit Suisse First Boston LLC, Banc of America Securities LLC and UBS
Securities LLC (collectively, the “Initial
Purchasers”), upon
the terms set forth in a Purchase Agreement dated as of July 15, 2003 (the
“Purchase Agreement”), $400,000,000 aggregate principal
amount of its 83/8% Senior Subordinated Notes Due 2011
(the “Initial Securities”) to be guaranteed (the “Guaranties”) by TransDigm Holding Company and each of the subsidiaries of
the Company listed in Schedule I hereto (collectively, the “Guarantors”).  The Initial Securities
will be issued pursuant to an Indenture dated as of the date hereof (the “Indenture”), among the Company, the Guarantors and The Bank of New York, as
trustee (the “Trustee”). 
As an inducement to the Initial Purchasers to enter into the Purchase
Agreement, the Company and the Guarantors have agreed to enter into this Agreement.  Following the closing of the Company Merger
(as defined in the Purchase Agreement), references in this Agreement to the
Company will mean TransDigm, Inc., as the surviving company in the Merger.  Accordingly, the Company and the Guarantors
agree with the Initial Purchasers, for the benefit of the Initial Purchasers
and the holders of the Securities (as defined below) (collectively the “Holders”), as follows:

 

1.  Registered
Exchange Offer.  Unless not
permitted by applicable law (after the Company has complied with the ultimate
paragraph of this Section 1), the Company shall prepare and, not later than
90 days (such 90th day being a “Filing Deadline”)
after the date on which the Initial Purchasers purchase the Initial Securities
pursuant to the Purchase Agreement (the “Closing
Date”), file with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Exchange Offer Registration Statement”) on an appropriate form under the Securities Act of 1933, as
amended (the “Securities Act”), with respect to a proposed offer
(the “Registered Exchange Offer”) to the Holders of Transfer
Restricted Securities (as defined in Section 6 hereof), who are not prohibited
by any law or policy of the Commission from participating in the Registered
Exchange Offer, to issue and deliver to such Holders, in exchange for the
Initial Securities, a like aggregate principal amount of debt securities of the
Company issued under the Indenture, identical in all material respects to the
Initial Securities and

 

 

registered under the Securities
Act (the “Exchange Securities”). 
The Company shall (i) use its reasonable best efforts to cause such
Exchange Offer Registration Statement to become effective under the Securities
Act within 180 days after the Closing Date (such 180th day
being an “Effectiveness Deadline”) and (ii) keep the Exchange
Offer Registration Statement effective for not less than 30 days (or
longer, if required by applicable law) after the date notice of the Registered
Exchange Offer is mailed to the Holders (such period being called the “Exchange Offer Registration Period”).

 

If the Company
commences the Registered Exchange Offer, the Company (i) will be entitled
to consummate the Registered Exchange Offer 30 days after such
commencement (provided that the Company has accepted all the Initial
Securities theretofore validly tendered in accordance with the terms of the
Registered Exchange Offer) and (ii) will be required to consummate the
Registered Exchange Offer no later than 40 days after the date on which
the Exchange Offer Registration Statement is declared effective (such 40th day
being the “Consummation Deadline”).

 

Following the
declaration of the effectiveness of the Exchange Offer Registration Statement,
the Company shall promptly commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder of Transfer
Restricted Securities electing to exchange the Initial Securities for Exchange
Securities (assuming that such Holder is not an affiliate of the Company within
the meaning of the Securities Act, acquires the Exchange Securities in the
ordinary course of such Holder’s business and has no arrangements with any
person to participate in the distribution of the Exchange Securities and is not
prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer) to trade such Exchange Securities from and after
their receipt without any limitations or restrictions under the Securities Act
and without material restrictions under the securities laws of the several
states of the United States.

 

The Company
acknowledges that, pursuant to current interpretations by the Commission’s
staff of Section 5 of the Securities Act, in the absence of an applicable
exemption therefrom, (i) each Holder which is a broker-dealer electing to
exchange Initial Securities, acquired for its own account as a result of market
making activities or other trading activities, for Exchange Securities (an “Exchanging Dealer”), is required to deliver a prospectus containing the information
set forth in (a) Annex A hereto on the cover, (b) Annex B hereto
in the “Exchange Offer Procedures” section and the “Purpose of the Exchange
Offer” section and (c) Annex C hereto in the “Plan of Distribution” section
of such prospectus in connection with a sale of any such Exchange Securities
received by such Exchanging Dealer pursuant to the Registered Exchange Offer
and (ii) an Initial Purchaser that elects to sell Securities (as defined
below) acquired in exchange for Initial Securities constituting any portion of
an unsold allotment, is required to deliver a prospectus containing the
information required by Items 507 or 508 of Regulation S-K under the
Securities Act, as applicable, in connection with such sale.

 

The Company
shall use its reasonable best efforts to keep the Exchange Offer Registration
Statement effective and to amend and supplement the prospectus contained
therein, in order to permit such prospectus to be lawfully delivered by all
persons subject to the prospectus delivery requirements of the Securities Act
for such period of time as such persons must comply with such requirements in
order to resell the Exchange Securities; provided,

 

2

 

however,
that (i) in the case where such prospectus and any amendment or supplement
thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such
period shall be the lesser of 180 days and the date on which all
Exchanging Dealers and the Initial Purchasers have sold all Exchange Securities
held by them (unless such period is extended pursuant to Section 3(j)
below) and (ii) the Company shall make such prospectus and any amendment
or supplement thereto available to any broker-dealer for use in connection with
any resale of any Exchange Securities for a period of not less than 180-days
after the consummation of the Registered Exchange Offer.

 

If, upon
consummation of the Registered Exchange Offer, any Initial Purchaser holds
Initial Securities acquired by it as part of its initial distribution, the
Company, simultaneously with the delivery of the Exchange Securities pursuant
to the Registered Exchange Offer, shall issue and deliver to such Initial
Purchaser upon the written request of such Initial Purchaser, in exchange (the
“Private Exchange”) for the Initial Securities held by
such Initial Purchaser, a like principal amount of debt securities of the
Company issued under the Indenture and identical in all material respects to
the Initial Securities (the “Private Exchange
Securities”).  The Initial Securities, the Exchange
Securities and the Private Exchange Securities are herein collectively called
the “Securities”.

 

In connection
with the Registered Exchange Offer, the Company shall:

 

(a) mail, or cause to be mailed, to each Holder a copy of the
prospectus forming part of the Exchange Offer Registration Statement, together
with an appropriate letter of transmittal and related documents;

 

(b)  keep the Registered Exchange Offer open for not less than
30 days (or longer, if required by applicable law) after the date notice
thereof is mailed to the Holders;

 

(c) utilize the services of a depositary for the Registered
Exchange Offer with an address in the Borough of Manhattan, The City of New
York, which may be the Trustee or an affiliate of the Trustee;

 

(d) permit Holders to withdraw tendered Securities at any time
prior to the close of business, New York time, on the last business day on
which the Registered Exchange Offer shall remain open; and

 

(e) otherwise comply in all material respects with all applicable laws.

 

As soon as
practicable after the close of the Registered Exchange Offer or the Private
Exchange, as the case may be, the Company shall:

 

(x) accept for exchange all the Initial Securities validly
tendered and not withdrawn pursuant to the Registered Exchange Offer and the
Private Exchange, if any;

 

(y) deliver to the Trustee for cancellation all the Initial
Securities so accepted for exchange; and

 

3

 

(z) cause the Trustee to authenticate and deliver promptly to each
Holder of the Initial Securities, Exchange Securities or Private Exchange
Securities, as the case may be, equal in principal amount to the Initial
Securities of such Holder so accepted for exchange.

 

The Indenture
will provide that the Exchange Securities will not be subject to the transfer
restrictions set forth in the Indenture and that all the Securities will vote
and consent together on all matters as one class and that none of the
Securities will have the right to vote or consent as a class separate from one
another on any matter.

 

Interest on
each Exchange Security and Private Exchange Security issued pursuant to the
Registered Exchange Offer and in the Private Exchange will accrue from the last
interest payment date on which interest was paid or duly provided for in
accordance with the Indenture on the Initial Securities surrendered in exchange
therefor or, if no interest has been paid on the Initial Securities, from the
date of original issue of the Initial Securities; provided that if an Initial
Security is surrendered for exchange on or after a record date for an interest
payment date that will occur on or after the date of such exchange and as to
which interest will be paid on the Initial Security, interest on the Exchange
Security received in exchange for such Initial Security will accrue from the
date of such interest payment date.

 

Each Holder
participating in the Registered Exchange Offer shall be required to represent to
the Company in writing, as a condition to its participation in the Registered
Exchange Offer, that at the time of the consummation of the Registered Exchange
Offer (i) any Exchange Securities received by such Holder will be acquired in
the ordinary course of business, (ii) at the time of the commencement of the
Registered Exchange Offer such Holder will have no arrangements or
understanding with any person to participate in the distribution of the
Securities or the Exchange Securities within the meaning of the Securities Act,
(iii) such Holder is not an “affiliate”, as defined in Rule 405 of the
Securities Act, of the Company or if it is an affiliate, such Holder will
comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable, (iv) if such Holder is not a
broker-dealer, that it is not engaged in, and does not intend to engage in, the
distribution of the Exchange Securities and (v) if such Holder is a
broker-dealer, that it will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities and that it will be required to
acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities.

 

Notwithstanding
any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus
forming part thereof and any supplement thereto complies in all material
respects with the Securities Act and the rules and regulations thereunder,
(ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, 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 not misleading and (iii) any
prospectus forming part of any Exchange Offer Registration Statement, and any
supplement to such prospectus, does not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

 

4

 

If following
the date hereof there has been announced a change in Commission policy with
respect to exchange offers that in the reasonable opinion of counsel to the
Company raises a substantial question as to whether the Registered Exchange
Offer is permitted by applicable federal law, the Company will use its
reasonable best efforts to seek a no-action letter or other favorable decision
from the Commission allowing the Company to consummate the Registered Exchange
Offer.  The Company will pursue the
issuance of such a decision to the Commission staff level.  In connection with the foregoing, the
Company will take all such other reasonable actions as may be requested by the
Commission or otherwise required in connection with the issuance of such
decision, including without limitation (i) participating in telephonic
conferences with the Commission, (ii) delivering to the Commission staff
an analysis prepared by counsel to the Company setting forth the legal bases,
if any, upon which such counsel has concluded that the Registered Exchange
Offer should be permitted and (iii) diligently pursuing a resolution (which
need not be favorable) by the Commission staff.

 

2.  Shelf Registration.  If, (i) because of any change in law or
in applicable interpretations thereof by the staff of the Commission, the
Company is not permitted to effect a Registered Exchange Offer, as contemplated
by Section 1 hereof, (ii) the Registered Exchange Offer is not consummated
by the 220th day after the Closing Date, (iii) any Initial
Purchaser so requests with respect to the Initial Securities (or the Private
Exchange Securities) not eligible to be exchanged for Exchange Securities in
the Registered Exchange Offer and held by it following consummation of the Registered
Exchange Offer or (iv) any Holder (other than an Exchanging Dealer) is not
eligible to participate in the Registered Exchange Offer or, in the case of any
Holder (other than an Exchanging Dealer) that participates in the Registered
Exchange Offer, such Holder does not receive freely tradeable Exchange
Securities on the date of the exchange and any such Holder so requests, the
Company shall take the following actions (the date on which any of the
conditions described in the foregoing clauses (i) through (iv) occur, including
in the case of clauses (iii) or (iv) the receipt of the required notice,
being a “Trigger Date”):

 

(a)  The Company shall promptly
(but in no event more than 60 days after the Trigger Date (such 60th day
being a “Filing Deadline”)) file with the Commission and
thereafter use its reasonable best efforts to cause to be declared effective,
in the case of Section 2(i) above, no later than 180 days after the
Closing Date and, in the case of, Sections 2(ii), 2(iii) or 2(iv) above, no
later than the 60th day after the applicable Filing Deadline (such
180th or 60th day, as applicable, being an “Effectiveness Deadline”) a registration statement (the “Shelf Registration Statement” and, together with the Exchange
Offer Registration Statement, a “Registration
Statement”) on an
appropriate form under the Securities Act relating to the offer and sale of the
Transfer Restricted Securities by the Holders thereof from time to time in
accordance with the methods of distribution set forth in the Shelf Registration
Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf Registration”); provided, however, that no Holder (other than an
Initial Purchaser) shall be entitled to have the Securities held by it covered
by such Shelf Registration Statement unless such Holder agrees in writing to be
bound by all the provisions of this Agreement applicable to such Holder.

 

(b)  The Company shall use its
reasonable best efforts to keep the Shelf Registration Statement continuously
effective in order to permit the prospectus included therein to be lawfully
delivered by the Holders of the relevant Securities, for a period of

 

5

 

two years (or
for such longer period if extended pursuant to Section 3(j) below) from
the date hereof or such shorter period that will terminate when all the
Securities covered by the Shelf Registration Statement (i) have been sold
pursuant thereto or (ii) are no longer restricted securities (as defined
in Rule 144 under the Securities Act, or any successor rule thereof).  The Company shall be deemed not to have used
its reasonable best efforts to keep the Shelf Registration Statement effective
during the requisite time period if it voluntarily takes any action that would
result in Holders of Securities covered thereby not being able to offer and
sell such Securities during that period, unless such action is required by
applicable law.

 

(c)  Notwithstanding any other provisions of this
Agreement to the contrary, the Company shall cause the Shelf Registration
Statement and the related prospectus and any amendment or supplement thereto,
as of the effective date of the Shelf Registration Statement, amendment or
supplement, (i) to comply in all material respects with the applicable
requirements of the Securities Act and the rules and regulations of the
Commission and (ii) not to contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.

 

3.  Registration
Procedures.  In connection
with any Shelf Registration contemplated by Section 2 hereof and, to the
extent applicable, any Registered Exchange Offer contemplated by Section 1
hereof, the following provisions shall apply:

 

(a)  The Company shall
(i) furnish to each Initial Purchaser, prior to the filing thereof with
the Commission, a copy of the Registration Statement and each amendment thereof
and each supplement, if any, to the prospectus included therein and, in the
event that an Initial Purchaser (with respect to any portion of an unsold
allotment from the original offering) is participating in the Registered
Exchange Offer or the Shelf Registration Statement, the Company shall use its
best efforts to reflect in each such document, when so filed with the
Commission, such comments as such Initial Purchaser reasonably may propose;
(ii) include the information set forth in Annex A hereto on the cover, in Annex
B hereto in the “Exchange Offer Procedures” section and the “Purpose of the
Exchange Offer” section and in Annex C hereto in the “Plan of Distribution”
section of the prospectus forming a part of the Exchange Offer Registration
Statement and include the information set forth in Annex D hereto in the Letter
of Transmittal delivered pursuant to the Registered Exchange Offer; (iii) if
requested by an Initial Purchaser, include the information required by Items
507 or 508 of Regulation S-K under the Securities Act, as applicable, in the
prospectus forming a part of the Exchange Offer Registration Statement; (iv)
include within the prospectus contained in the Exchange Offer Registration
Statement a section entitled “Plan of Distribution” reasonably acceptable to
the Initial Purchasers, which shall contain a summary statement of the
positions taken or policies made by the staff of the Commission with respect to
the potential “underwriter” status of any broker-dealer that is the beneficial
owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) of Exchange Securities received by
such broker-dealer in the Registered Exchange Offer (a “Participating Broker-Dealer”), whether such positions or policies
have been publicly disseminated by the staff of the Commission or such
positions or policies, in the

 

6

 

reasonable
judgment of the Initial Purchasers based upon advice of counsel (which may be
in-house counsel), represent the prevailing views of the staff of the
Commission; and (v) in the case of a Shelf Registration Statement, include the
names of the Holders who propose to sell Securities pursuant to the Shelf
Registration Statement as selling security holders.

 

(b)  The Company shall give
written notice to the Initial Purchasers, the Holders of the Securities and any
Participating Broker-Dealer from whom the Company has received prior written
notice that it will be a Participating Broker-Dealer in the Registered Exchange
Offer (which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by
an instruction to suspend the use of the prospectus until the requisite changes
have been made):

 

(i) when the Registration Statement or any amendment thereto has been
filed with the Commission and when the Registration Statement or any
post-effective amendment thereto has become effective;

 

(ii) of any request by the Commission for amendments or supplements to
the Registration Statement or the prospectus included therein or for additional
information;

 

(iii) of the issuance by the Commission of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any
proceedings for that purpose;

 

(iv) of the receipt by the Company or its legal counsel of any
notification with respect to the suspension of the qualification of the
Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; and

 

(v) of the happening of any event that requires the Company to make
changes in the Registration Statement or the prospectus in order that the
Registration Statement or the prospectus do not contain an untrue statement of
a material fact nor omit to state a material fact required to be stated therein
or necessary to make the statements therein (in the case of the prospectus, in
light of the circumstances under which they were made) not misleading.

 

(c)  The Company shall make
every reasonable effort to obtain the withdrawal at the earliest possible time,
of any order suspending the effectiveness of the Registration Statement.

 

(d)  The Company shall furnish
to each Holder of Securities included within the coverage of the Shelf
Registration, without charge, at least one copy of the Shelf Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if the Holder so requests in writing, all
exhibits thereto (including those, if any, incorporated by reference).

 

7

 

(e)  The Company shall deliver
to each Exchanging Dealer and each Initial Purchaser, and to any other Holder
who so requests in writing, without charge, at least one copy of the Exchange
Offer Registration Statement and any post-effective amendment thereto,
including financial statements and schedules, and, if any Initial Purchaser or
any such Holder requests, all exhibits thereto (including those incorporated by
reference).

 

(f)  The Company shall, during
the Shelf Registration Period, deliver to each Holder of Securities included
within the coverage of the Shelf Registration, without charge, as many copies
of the prospectus (including each preliminary prospectus) included in the Shelf
Registration Statement and any amendment or supplement thereto as such person
may reasonably request in writing.  The
Company consents, subject to the provisions of this Agreement, to the use of
the prospectus or any amendment or supplement thereto by each of the selling
Holders of the Securities in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

 

(g)  The Company shall deliver
to each Initial Purchaser, any Exchanging Dealer, any Participating
Broker-Dealer and such other persons required to deliver a prospectus following
the Registered Exchange Offer, without charge, as many copies of the final
prospectus included in the Exchange Offer Registration Statement and any
amendment or supplement thereto as such persons may reasonably request.  The Company consents, subject to the
provisions of this Agreement, to the use of the prospectus or any amendment or
supplement thereto by any Initial Purchaser, if necessary, any Participating
Broker-Dealer and such other persons required to deliver a prospectus following
the Registered Exchange Offer in connection with the offering and sale of the
Exchange Securities covered by the prospectus, or any amendment or supplement
thereto, included in such Exchange Offer Registration Statement.

 

(h)  Prior to any public
offering of the Securities pursuant to any Registration Statement, the Company
shall register or qualify or cooperate with the Holders of the Securities
included therein and their respective counsel in connection with the
registration or qualification of the Securities for offer and sale under the
securities or “blue sky” laws of such states of the United States as any Holder
of the Securities reasonably requests in writing and do any and all other acts
or things necessary or advisable to enable the offer and sale in such
jurisdictions of the Securities covered by such Registration Statement;
provided, however, that the Company shall not be required to (i) qualify
generally to do business in any jurisdiction where it is not then so qualified
or (ii) take any action which would subject it to general service of
process or to taxation in any jurisdiction where it is not then so subject.

 

(i)  The Company shall cooperate
with the Holders of the Securities to facilitate the timely preparation and delivery
of certificates representing the Securities to be sold pursuant to any
Registration Statement free of any restrictive legends and in such
denominations and registered in such names as the Holders may request a
reasonable period of time prior to sales of the Securities pursuant to such
Registration Statement.

 

8

 

(j)  Upon the occurrence of any
event contemplated by paragraphs (ii) through (v) of Section 3(b)
above during the period for which the Company is required to maintain an
effective Registration Statement, the Company shall promptly prepare and file a
post-effective amendment to the Registration Statement or a supplement to the
related prospectus and any other required document so that, as thereafter
delivered to Holders of the Securities or purchasers of Securities, the
prospectus will not contain an untrue statement of a material fact or omit to
state any 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.  If the Company notifies
the Initial Purchasers, the Holders of the Securities and any known
Participating Broker-Dealer in accordance with paragraphs (ii) through (v) of
Section 3(b) above to suspend the use of the prospectus until the requisite
changes to the prospectus have been made, then the Initial Purchasers, the
Holders of the Securities and any such Participating Broker-Dealers shall
suspend use of such prospectus, and the period of effectiveness of the Shelf
Registration Statement provided for in Section 2(b) above and the Exchange
Offer Registration Statement provided for in Section 1 above shall each be
extended by the number of days from and including the date of the giving of
such notice to and including the date when the Initial Purchasers, the Holders
of the Securities and any known Participating Broker-Dealer shall have received
such amended or supplemented prospectus pursuant to this Section 3(j).

 

(k)  Not later than the
effective date of the applicable Registration Statement, the Company will
provide a CUSIP number for the Initial Securities, the Exchange Securities or
the Private Exchange Securities, as the case may be, and provide the applicable
trustee with printed certificates for the Initial Securities, the Exchange
Securities or the Private Exchange Securities, as the case may be, in a form
eligible for deposit with The Depository Trust Company.

 

(l)  The Company will comply
with all rules and regulations of the Commission to the extent and so long as
they are applicable to the Registered Exchange Offer or the Shelf Registration
and will make generally available to its security holders (or otherwise provide
in accordance with Section 11(a) of the Securities Act) a consolidated earnings
statement satisfying the provisions of Section 11(a) of the Securities Act, no
later than 45 days after the end of a 12-month period (or 90 days, if such
period is a fiscal year) beginning with the first month of the Company’s first fiscal
quarter commencing after the effective date of the Registration Statement,
which statement shall cover such 12-month period.

 

(m)  The Company shall cause the
Indenture to be qualified under the Trust Indenture Act of 1939, as amended, in
a timely manner and containing such changes, if any, as shall be necessary for
such qualification.  In the event that
such qualification would require the appointment of a new trustee under the
Indenture, the Company shall appoint a new trustee thereunder pursuant to the
applicable provisions of the Indenture.

 

(n)  The Company may require
each Holder of Securities to be sold pursuant to the Shelf Registration
Statement to furnish to the Company such information regarding the Holder and
the distribution of the Securities as the Company may from time to time

 

9

 

reasonably
require for inclusion in the Shelf Registration Statement, and the Company may
exclude from such registration the Securities of any Holder that unreasonably
fails to furnish such information within a reasonable time after receiving such
request.

 

(o)  The Company shall enter
into such customary agreements (including, if requested, an underwriting
agreement in customary form) and take all such other action, if any, as any
Holder of the Securities shall reasonably request in order to facilitate the
disposition of the Securities pursuant to any Shelf Registration.

 

(p)  In the case of any Shelf
Registration, the Company shall (i) make reasonably available for
inspection by the Holders of the Securities, any underwriter participating in
any disposition pursuant to the Shelf Registration Statement and any attorney,
accountant or other agent retained by the Holders of the Securities or any such
underwriter all relevant financial and other records, pertinent corporate
documents and properties of the Company and (ii) cause the Company’s
officers, directors, employees, accountants and auditors to supply all relevant
information reasonably requested by the Holders of the Securities or any such
underwriter, attorney, accountant or agent in connection with the Shelf
Registration Statement, in each case, as shall be reasonably necessary to
enable such persons, to conduct a reasonable investigation within the meaning
of Section 11 of the Securities Act; provided, however, that the foregoing
inspection and information gathering shall be coordinated on behalf of the
Initial Purchasers by you and on behalf of the other parties, by one counsel
designated by and on behalf of such other parties as described in Section 4
hereof.

 

(q)  In the case of any Shelf
Registration, the Company, if requested by any Holder of Securities covered
thereby, shall cause (i) its counsel to deliver an opinion and updates
thereof relating to the Securities in customary form addressed to such Holders
and the managing underwriters, if any, thereof and dated, in the case of the
initial opinion, the effective date of such Shelf Registration Statement, it
being agreed that the matters to be covered by such opinion shall include,
without limitation, the due incorporation and good standing of the Company and
its subsidiaries; the qualification of the Company and its subsidiaries to
transact business as foreign corporations; the due authorization, execution and
delivery of the relevant agreement of the type referred to in Section 3(o)
hereof; the due authorization, execution, authentication and issuance, and the
validity and enforceability, of the applicable Securities; the absence of
material legal or governmental proceedings involving the Company and its
subsidiaries; the absence of governmental approvals required to be obtained in
connection with the Shelf Registration Statement, the offering and sale of the
applicable Securities, or any agreement of the type referred to in Section 3(o)
hereof; the compliance as to form of such Shelf Registration Statement and any
documents incorporated by reference therein and of the Indenture with the
requirements of the Securities Act and the Trust Indenture Act, respectively;
and, as of the date of the opinion and as of the effective date of the Shelf
Registration Statement or most recent post effective amendment thereto, as the
case may be, the absence from such Shelf Registration Statement and the
prospectus included therein, as then amended or supplemented, and from any
documents incorporated by reference therein of an untrue statement of a
material fact or the omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading (in
the case of

 

10

 

any such
documents, in the light of the circumstances existing at the time that such
documents were filed with the Commission under the Exchange Act); (ii) its
officers to execute and deliver all customary documents and certificates and
updates thereof requested by any underwriters of the applicable Securities and
(iii) its independent public accountants and the independent public
accountants with respect to any other entity for which financial information is
provided in the Shelf Registration Statement to provide to the selling Holders
of the applicable Securities and any underwriter therefor a comfort letter in
customary form and covering matters of the type customarily covered in comfort
letters in connection with primary underwritten offerings, subject to receipt
of appropriate documentation as contemplated, and only if permitted, by
Statement of Auditing Standards No. 72.

 

(r)  In the case of the Registered Exchange Offer, if
requested by any Initial Purchaser or any known Participating Broker Dealer,
the Company shall cause (i) its counsel to deliver to such Initial
Purchaser or such Participating Broker Dealer signed opinions in the form set
forth in Sections 6(d) and 6(e) of the Purchase Agreement with such changes as
are customary in connection with the preparation of a Registration Statement
and (ii) its independent public accountants and the independent public
accountants with respect to any other entity for which financial information is
provided in the Registration Statement to deliver to such Initial Purchaser or
such Participating Broker Dealer comfort letters, in customary form, meeting
the requirements as to the substance thereof as set forth in Sections 6(a),
6(c) and 6(i) of the Purchase Agreement, with appropriate date changes.

 

(s)  If a Registered Exchange
Offer or a Private Exchange is to be consummated, upon delivery of the Initial
Securities by Holders to the Company (or to such other Person as directed by
the Company) in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be, the Company shall mark, or caused to be marked,
on the Initial Securities so exchanged that such Initial Securities are being
canceled in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be; in no event shall the Initial Securities be
marked as paid or otherwise satisfied.

 

(t)  The Company will use its
reasonable best efforts to (a) if the Initial Securities have been rated prior
to the initial sale of such Initial Securities, confirm that such ratings will
apply to the Securities covered by a Registration Statement, or (b) if the
Initial Securities were not previously rated cause the Securities covered by a
Registration Statement to be rated with the appropriate rating agencies, if so
requested by Holders of a majority in aggregate principal amount of Securities
covered by such Registration Statement, or by the managing underwriters, if
any.

 

(u)  In the event that any
broker-dealer registered under the Exchange Act shall underwrite any Securities
or participate as a member of an underwriting syndicate or selling group or
“assist in the distribution” (within the meaning of the Conduct Rules (the
“Rules”) of the National Association of Securities Dealers, Inc. (“NASD”))
thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Company will assist such broker-

 

11

 

dealer in
complying with the requirements of such Rules, including, without limitation,
by (i) if such Rules, including Rule 2720, shall so require, engaging a
“qualified independent underwriter” (as defined in Rule 2720) to
participate in the preparation of the Registration Statement relating to such
Securities, to exercise usual standards of due diligence in respect thereto
and, if any portion of the offering contemplated by such Registration Statement
is an underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Securities, (ii) indemnifying any such qualified
independent underwriter to the extent of the indemnification of underwriters
provided in Section 5 hereof and (iii) providing such information to such
broker-dealer as may be required in order for such broker-dealer to comply with
the requirements of the Rules.

 

(v)  The Company shall use its
reasonable best efforts to take all other steps necessary to effect the
registration of the Securities covered by a Registration Statement contemplated
hereby.

 

4.  Registration Expenses.

 

(a)  All expenses incident to
the Company’s performance of and compliance with this Agreement will be borne
by the Company, regardless of whether a Registration Statement is ever filed or
becomes effective, including without limitation;

 

(i) all registration and filing fees and expenses;

 

(ii) all fees and expenses of compliance with federal securities and
state “blue sky” or securities laws;

 

(iii) all expenses of printing (including printing certificates for the
Securities to be issued in the Registered Exchange Offer and the Private
Exchange and printing of Prospectuses), messenger and delivery services and
telephone;

 

(iv) all fees and disbursements of counsel for the Company;

 

(v) all application and filing fees in connection with listing the
Exchange Securities on a national securities exchange or automated quotation
system pursuant to the requirements hereof; and

 

(vi) all fees and disbursements of independent certified public
accountants of the Company (including the expenses of any special audit and
comfort letters required by or incident to such performance).

 

The Company will bear its
internal expenses (including, without limitation, all salaries and expenses of
its officers and employees performing legal or accounting duties), the expenses
of any annual audit and the fees and expenses of any person, including special
experts, retained by the Company.

 

(b)  In connection with any
Registration Statement required by this Agreement, the Company will reimburse
the Initial Purchasers and the Holders of Transfer Restricted

 

12

 

Securities who
are tendering Initial Securities in the Registered Exchange Offer or selling or
reselling Securities pursuant to the “Plan of Distribution” contained in the
Exchange Offer Registration Statement or the Shelf Registration Statement, as
applicable, for the reasonable fees and disbursements of not more than one
counsel, who shall be Cravath, Swaine & Moore LLP unless another firm shall
be chosen by the Holders of a majority in principal amount of the Transfer
Restricted Securities for whose benefit such Registration Statement is being
prepared.

 

5.  Indemnification.

 

(a)  The Company agrees to
indemnify and hold harmless each Holder of the Securities, any Participating
Broker-Dealer and each person, if any, who controls such Holder or such
Participating Broker-Dealer within the meaning of the Securities Act or the
Exchange Act (each Holder, any Participating Broker-Dealer and such controlling
persons are referred to collectively as the “Indemnified
Parties”) from and
against any losses, claims, damages or liabilities, joint or several, or any
actions in respect thereof (including, but not limited to, any losses, claims,
damages, liabilities or actions relating to purchases and sales of the
Securities) to which each Indemnified Party may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages, liabilities or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration, or arise out
of, or are based upon, the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and shall reimburse, as incurred, the Indemnified
Parties for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action in respect thereof; provided, however, that
(i) the Company shall not be liable in any such case to the extent that such
loss, claim, damage or liability arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration in reliance
upon and in conformity with written information pertaining to such Holder and
furnished to the Company by or on behalf of such Holder specifically for
inclusion therein and (ii) with respect to any untrue statement or omission or
alleged untrue statement or omission made in any preliminary prospectus
relating to a Shelf Registration Statement, the indemnity agreement contained
in this subsection (a) shall not inure to the benefit of any Holder or
Participating Broker-Dealer from whom the person asserting any such losses,
claims, damages or liabilities purchased the Securities concerned, to the
extent that a prospectus relating to such Securities was required to be
delivered by such Holder or Participating Broker-Dealer under the Securities
Act in connection with such purchase and any such loss, claim, damage or
liability of such Holder or Participating Broker-Dealer results from the fact
that there was not sent or given to such person, at or prior to the written
confirmation of the sale of such Securities to such person, a copy of the final
prospectus if the Company had previously furnished copies thereof to such Holder
or Participating Broker-Dealer; provided further, however, that
this indemnity agreement will be in addition to any liability which the Company
may otherwise have to such Indemnified

 

13

 

Party.  The Company shall also indemnify
underwriters, their officers and directors and each person who controls such
underwriters within the meaning of the Securities Act or the Exchange Act to
the same extent as provided above with respect to the indemnification of the Holders
of the Securities if requested by such Holders.

 

(b)  Each Holder of the
Securities, severally and not jointly, will indemnify and hold harmless the
Company and each person, if any, who controls the Company within the meaning of
the Securities Act or the Exchange Act from and against any losses, claims,
damages or liabilities or any actions in respect thereof, to which the Company
or any such controlling person may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities
or actions arise out of or are based upon any untrue statement or alleged
untrue statement of a material fact contained in a Registration Statement or
prospectus or in any amendment or supplement thereto or in any preliminary
prospectus relating to a Shelf Registration, or arise out of or are based upon
the omission or alleged omission to state therein a material fact necessary to
make the statements therein not misleading, but in each case only to the extent
that the untrue statement or omission or alleged untrue statement or omission
was made in reliance upon and in conformity with written information pertaining
to such Holder and furnished to the Company by or on behalf of such Holder
specifically for inclusion therein; and, subject to the limitation set forth
immediately preceding this clause, shall reimburse, as incurred, the Company
for any legal or other expenses reasonably incurred by the Company or any such
controlling person in connection with investigating or defending any loss,
claim, damage, liability or action in respect thereof.  This indemnity agreement will be in addition
to any liability which such Holder may otherwise have to the Company or any of
its controlling persons.

 

(c)  Promptly after receipt by an
indemnified party under this Section 5 of notice of the commencement of
any action or proceeding (including a governmental investigation), such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 5, notify the indemnifying party of
the commencement thereof; but the failure to notify the indemnifying party
shall not relieve it from any liability that it may have under subsection (a)
or (b) above except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and
provided further that the failure to notify the indemnifying party shall not
relieve it from any liability that it may have to an indemnified party
otherwise than under subsection (a) or (b) above.  In case any such action is brought against any indemnified party,
and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent
that it may wish, jointly with any other indemnifying party similarly notified,
to assume the defense thereof, with counsel reasonably satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof the indemnifying party will not be liable to such indemnified
party under this Section 5 for any legal or other expenses, other than
reasonable costs of investigation, subsequently incurred by such indemnified
party in connection with the defense thereof. 
No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any

 

14

 

pending or
threatened action in respect of which any indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified
party unless such settlement (i) includes an unconditional release of such
indemnified party from all liability on any claims that are the subject matter
of such action, and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified
party.

 

(d)  If the indemnification
provided for in this Section 5 is unavailable or insufficient to hold harmless
an indemnified party under subsections (a) or (b) above, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified party
as a result of the losses, claims, damages or liabilities (or actions in
respect thereof) referred to in subsection (a) or (b) above in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party or parties on the one hand and the indemnified party on the other in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof) as well as any
other relevant equitable considerations. 
The relative fault of the parties 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 Company on the one hand or such Holder
or such other indemnified party, as the case may be, on the other, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. 
The amount paid by an indemnified party as a result of the losses,
claims, damages or liabilities referred to in the first sentence of this
subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any action or claim which is the subject of this subsection
(d).  Notwithstanding any other
provision of this Section 5(d), the Holders of the Securities shall not be required
to contribute any amount in excess of the amount by which the net proceeds
received by such Holders from the sale of the Securities pursuant to a
Registration Statement exceeds the amount of damages which such Holders have
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. 
No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.  For purposes of this paragraph (d), each
person, if any, who controls such indemnified party within the meaning of the
Securities Act or the Exchange Act shall have the same rights to contribution
as such indemnified party and each person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act shall have the
same rights to contribution as the Company.

 

(e)  The agreements contained in
this Section 5 shall survive the sale of the Securities pursuant to a Registration
Statement and shall remain in full force and effect, regardless of any
termination or cancellation of this Agreement or any investigation made by or
on behalf of any indemnified party.

 

15

 

6.  Additional Interest Under Certain Circumstances.

 

(a)  Additional interest (the “Additional Interest”) with respect to the Securities shall be assessed, as follows if
any of the following events occur (each such event in clauses (i) through (iv)
below being herein called a “Registration
Default”):

 

(i) any Registration Statement required by this Agreement is not filed
with the Commission on or prior to the applicable Filing Deadline;

 

(ii) any Registration Statement required by this Agreement is not
declared effective by the Commission on or prior to the applicable
Effectiveness Deadline;

 

(iii) the Registered Exchange Offer has not been consummated on or
prior to the Consummation Deadline; or

 

(iv) any Registration Statement required by this Agreement has been
declared effective by the Commission but (A) such Registration Statement
thereafter ceases to be effective or (B) such Registration Statement or the
related prospectus ceases to be usable in connection with resales of Transfer
Restricted Securities during the periods specified herein because either (1)
any event occurs as a result of which the related prospectus forming part of
such Registration Statement would include any untrue statement of a material
fact or omit to state any material fact necessary to make the statements
therein in the light of the circumstances under which they were made not
misleading, or (2) it shall be necessary to amend such Registration Statement
or supplement the related prospectus, to comply with the Securities Act or the
Exchange Act or the respective rules thereunder.

 

Each of the foregoing will
constitute a Registration Default whatever the reason for any such event and
whether it is voluntary or involuntary or is beyond the control of the Company
or pursuant to operation of law or as a result of any action or inaction by the
Commission.

 

Additional Interest shall
accrue on the Securities over and above the interest set forth in the title of
the Securities from and including the date on which any such Registration
Default shall occur to but excluding the date on which all such Registration
Defaults have been cured, at a rate of $0.05 per week per $1,000 principal
amount of Initial Securities (the “Additional
Interest Rate”) for
the first 90-day period immediately following the occurrence of such
Registration Default.  The Additional
Interest Rate shall increase by an additional $0.05 per week per $1,000
principal amount of Initial Securities with respect to each subsequent 90-day
period until all Registration Defaults have been cured, up to a maximum
Additional Interest Rate of 2.0% per annum.

 

(b)  A Registration Default
referred to in Section 6(a)(iv) hereof shall be deemed not to have occurred and
be continuing in relation to a Shelf Registration Statement or the related
prospectus if (i) such Registration Default has occurred solely as a result of
(x) the filing of a post-effective amendment to such Shelf Registration
Statement to incorporate annual audited financial information with respect to
the Company where such post-effective amendment is not yet effective and needs
to be declared effective to permit

 

16

 

Holders to use the related prospectus or (y) other material events,
with respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause
(y), the Company is proceeding promptly and in good faith to amend or
supplement such Shelf Registration Statement and related prospectus to describe
such events; provided, however, that in any case if such
Registration Default occurs for a continuous period in excess of 30 days,
Additional Interest shall be payable in accordance with the above paragraph
from the day such Registration Default occurs until such Registration Default
is cured.

 

(c)  Any amounts of Additional
Interest due pursuant to Section 6(a) will be payable in cash on the regular
interest payment dates with respect to the Securities.  The amount of Additional Interest will be
determined by multiplying the applicable Additional Interest Rate by the
principal amount of the Securities and further multiplied by a fraction, the
numerator of which is the number of days such Additional Interest Rate was
applicable during such period (determined on the basis of a 360-day year
comprised of twelve 30-day months), and the denominator of which is 360.

 

(d)  “Transfer Restricted Securities” means each Security until (i) the date on which such Security
has been exchanged by a person other than a broker-dealer for a freely
transferable Exchange Security in the Registered Exchange Offer, (ii) following
the exchange by a broker-dealer in the Registered Exchange Offer of an Initial
Security for an Exchange Security, the date on which such Exchange Security is sold
to a purchaser who receives from such broker-dealer on or prior to the date of
such sale a copy of the prospectus contained in the Exchange Offer Registration
Statement, (iii) the date on which such Security has been effectively
registered under the Securities Act and disposed of in accordance with the
Shelf Registration Statement or (iv) the date on which such Security is
distributed to the public pursuant to Rule 144 under the Securities Act or is
saleable pursuant to Rule 144(k) under the Securities Act.

 

7.  Rules 144
and 144A.  The Company shall
use its best efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act in a timely manner and, if at any time the
Company is not required to file such reports, it will, upon the request of any
Holder of Securities, make publicly available other information so long as
necessary to permit sales of their securities pursuant to Rules 144 and
144A.  The Company covenants that it will
take such further action as any Holder of Securities may reasonably request,
all to the extent required from time to time to enable such Holder to sell
Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rules 144 and 144A (including the requirements of
Rule 144A(d)(4)).  The Company will
provide a copy of this Agreement to prospective purchasers of Initial
Securities identified to the Company by the Initial Purchasers upon written
request.  Upon the written request of
any Holder of Initial Securities, the Company shall deliver to such Holder a
written statement as to whether it has complied with such requirements.  Notwithstanding the foregoing, nothing in
this Section 7 shall be deemed to require the Company to register any of its
securities pursuant to the Exchange Act.

 

8.  Underwritten
Registrations.  If any of the
Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and
manager or managers that will administer the offering (“Managing

 

17

 

Underwriters”) will be selected by the Holders of
a majority in aggregate principal amount of such Transfer Restricted Securities
to be included in such offering.

 

No person may
participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Transfer Restricted Securities on the basis
reasonably provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such underwriting
arrangements.

 

9.  Miscellaneous.

 

(a)  Remedies.  The
Company acknowledges and agrees that any failure by the Company to comply with
its obligations under Section 1 and 2 hereof may result in material irreparable
injury to the Initial Purchasers or the Holders for which there is no adequate
remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, the Initial
Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Company’s obligations under Sections 1 and 2
hereof.  The Company further agrees to
waive the defense in any action for specific performance that a remedy at law
would be adequate.

 

(b)  No Inconsistent Agreements. 
The Company will not on or after the date of this Agreement enter into
any agreement with respect to its securities that is inconsistent with the
rights granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof.  The rights granted
to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Company’s securities
under any agreement in effect on the date hereof.

 

(c)  Amendments and Waivers. 
The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, except by the Company and the written consent of the Holders
of a majority in principal amount of the Securities affected by such amendment,
modification, supplement, waiver or consents. 
Without the consent of the Holder of each Security, however, no
modification may change the provisions relating to the payment of Additional
Interest.

 

(d)  Notices.  All notices
and other communications provided for or permitted hereunder shall be made in
writing by hand delivery, first-class mail, facsimile transmission, or air
courier which guarantees overnight delivery:

 

(1)  if to a Holder of the
Securities, at the most current address given by such Holder to the Company.

 

(2)  if to the Initial
Purchasers:

 

18

 

Credit Suisse
First Boston LLC

Eleven Madison
Avenue

New York, NY
10010-3629

Fax No.:  (212) 325-8278

Attention:  Transactions Advisory Group

 

with a copy
to:

 

Cravath,
Swaine & Moore

825 Eighth
Avenue

Worldwide
Plaza

New York, NY
10019-7475

Fax No.:  (212) 474-3700

Attention:  Stephen L. Burns, Esq.

 

(3) if to the Company:

 

TransDigm Inc.

26380 Curtis
Wright Parkway

Richmond
Heights, Ohio  44193

Fax No.:  (216) 289-4937

Attention:       Gregory Rufus,

Vice President and 

Chief Financial Officer

 

with copies to:

 

Warburg Pincus
LLC

466 Lexington
Avenue

New York, NY
10017

Fax No.:  (212) 878-9100

Attention:  General Counsel

 

and

 

Willkie Farr
& Gallagher

787 Seventh
Avenue

New York,
NY 10019

Fax No.:  (212) 728-8111

Attention:  Steven J. Gartner, Esq.

 

All such
notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; three business days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile
machine operator, if sent by facsimile transmission; and on the day delivered,
if sent by overnight air courier guaranteeing next day delivery.

 

19

 

(e) Third Party Beneficiaries.  The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right
to enforce such agreements directly to the extent they may deem such
enforcement necessary or advisable to protect their rights or the rights of
Holders hereunder.

 

(f)  Successors and Assigns.  This Agreement shall be binding upon the Company and its
successors and assigns.

 

(g)  Counterparts.  This
Agreement may be executed in any number of counterparts (including by
facsimile) and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

(h)  Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

 

(i)  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAWS.

 

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

 

(k)  Securities Held by the Company.  Whenever the consent or approval of Holders of a specified
percentage of principal amount of Securities is required hereunder, Securities
held by the Company or its affiliates (other than subsequent Holders of Securities
if such subsequent Holders are deemed to be affiliates solely by reason of
their holdings of such Securities) shall not be counted in determining whether
such consent or approval was given by the Holders of such required percentage.

 

(l) Submission to Jurisdiction;
Waiver of Immunities.  Each
of the parties hereto hereby submits to the non-exclusive jurisdiction of the
Federal and state courts in the Borough of Manhattan in The City of New York in
any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.  To
the extent that any such party may acquire any immunity from jurisdiction of
any court or from any legal process (whether through service of notice,
attachment prior to judgment, attachment in aid of execution, execution or otherwise)
with respect to itself or its property, it hereby irrevocably waives such
immunity in respect of this Agreement, to the fullest extent permitted by law.

 

20

 

If the
foregoing is in accordance with your understanding of our agreement, please
sign and return to the Company a counterpart hereof, whereupon this instrument,
along with all counterparts, will become a binding agreement among the several
Initial Purchasers, the Company and the Guarantors in accordance with its
terms.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  TD FUNDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Vice President and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TD ACQUISITION CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Vice President and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ZMP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADAMS RITE AEROSPACE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHRISTIE ELECTRIC CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  

 

21

 

	
   

  	
  MARATHON POWER TECHNOLOGIES

  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHAMPION AEROSPACE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  

 

22

 

The undersigned hereby
acknowledges and agrees

that, upon the effectiveness of the Company Merger

it will succeed by operation of law to all of the rights and

obligations of the Company set forth herein and

that all references herein to the “Company” shall

thereupon be deemed to be references to the

undersigned.

 

TRANSDIGM INC.

 

 

	
  By

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President and Chief Executive Officer

  

 

The undersigned hereby
acknowledges and agrees

that, upon the effectiveness of the Holding Merger

(as defined in the Purchase Agreement), it will

succeed by operation of law to all of the rights and

obligations of TD Acquisition set forth herein and that

all references herein to “Guarantors” shall thereupon

be deemed to include the undersigned.

 

TRANSDIGM HOLDING COMPANY

 

 

	
  By

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President and Chief Executive Officer

  

 

23

 

The foregoing Registration Rights Agreement

is hereby confirmed and accepted as of the

date first above written.

 

CREDIT SUISSE FIRST BOSTON LLC,

as representative for the Initial Purchasers

 

 

	
  By

  	
  /s/ Edward M. Yorke

  	
   

  
	
   

  	
  Name: Edward M. Yorke

  
	
   

  	
  Title: Managing Director

  

 

24

 

ANNEX A

 

 

Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities.  The Letter of Transmittal states that by so
acknowledging and by delivering a prospectus, a broker-dealer will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.  This Prospectus, as it
may be amended or supplemented from time to time, may be used by a
broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired by
such broker-dealer as a result of market-making activities or other trading
activities.  The Company has agreed
that, for a period of 180 days after the Expiration Date (as defined herein),
it will make this Prospectus available to any broker-dealer for use in
connection with any such resale.  See
“Plan of Distribution.”

 

 

ANNEX B

 

 

Each
broker-dealer that receives Exchange Securities for its own account in exchange
for Initial Securities, where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Securities. 
See “Plan of Distribution.”

 

 

ANNEX C

 

 

PLAN OF DISTRIBUTION

 

Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities.  This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Initial Securities
where such Initial Securities were acquired as a result of market-making
activities or other trading activities. 
The Company has agreed that, for a period of 180 days after the
Expiration Date, it will make this prospectus, as amended or supplemented,
available to any broker-dealer for use in connection with any such resale.  In addition,
until                     ,
200 , all dealers effecting transactions in the Exchange Securities may be
required to deliver a prospectus.(1)

 

The Company will not receive any proceeds from any sale of Exchange
Securities by broker-dealers.  Exchange
Securities received by broker-dealers for their own account pursuant to the
Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of
options on the Exchange Securities or a combination of such methods of resale,
at market prices prevailing at the time of resale, at prices related to such
prevailing market prices or negotiated prices. 
Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities.  Any broker-dealer that
resells Exchange Securities that were received by it for its own account
pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter”
within the meaning of the Securities Act and any profit on any such resale of
Exchange Securities and any commission or concessions received by any such
persons may be deemed to be underwriting compensation under the Securities
Act.  The Letter of Transmittal states
that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act.

 

For a period of 180 days after the Expiration Date the Company will
promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal.  The
Company has agreed to pay all expenses incident to the Exchange Offer
(including the expenses of one counsel for the Holders of the Securities) other
than commissions or concessions of any brokers or dealers and will indemnify
the Holders of the Securities (including any broker-dealers) against certain
liabilities, including liabilities under the Securities Act.

 

(1) In
addition, the legend required by Item 502(e) of Regulation S-K will appear on
the inside front cover page of the Exchange Offer prospectus below the Table of
Contents.

 

 

ANNEX D

 

 

o            CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE
10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR
SUPPLEMENTS THERETO.

 

Name:

Address:

 

 

If the
undersigned is not a broker-dealer, the undersigned represents that it is not
engaged in, and does not intend to engage in, a distribution of Exchange
Securities.  If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities, it acknowledges that it will deliver a
prospectus in connection with any resale of such Exchange Securities; however,
by so acknowledging and by delivering a prospectus, the undersigned will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.

 

 

SCHEDULE I

 

Subsidiary Guarantors

 

 

ZMP, Inc.

Adams Rite
Aerospace, Inc.

Christie
Electric Corp.

Marathon Power
Technologies Company

Champion
Aerospace, Inc.

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