Document:

Share Purchase Agreement dated as of January 31, 2007

 EXHIBIT 10.45 
 ONCAP L.P. 
 - and - 
 ONCAP (CAYMAN) L.P. 
 - and - 
 ONEX CORPORATION 
 - and - 
 ESTERLINE TECHNOLOGIES CORPORATION 
  

 SHARE PURCHASE AGREEMENT 
  

 January 31, 2007 
  

 TABLE OF CONTENTS 
  

					
	ARTICLE 1	  	 	  	 
	 INTERPRETATION
	  	2
	 1.1
	  	Definitions	  	2
	 1.2
	  	Schedules	  	18
	 1.3
	  	Headings and Table of Contents	  	18
	 1.4
	  	Gender and Number	  	19
	 1.5
	  	Currency	  	19
	 1.6
	  	Generally Accepted Accounting Principles	  	19
	 1.7
	  	Invalidity of Provisions	  	19
	 1.8
	  	Entire Agreement	  	19
	 1.9
	  	Waiver, Amendment	  	20
	 1.10
	  	Governing Law	  	20
	 1.11
	  	Submission to Jurisdictions	  	20
			
	ARTICLE 2	  	 	  	 
	 PURCHASED SHARES
	  	21
	 2.1
	  	Agreement to Purchase and Sell Purchased Shares	  	21
	 2.2
	  	Completion of Purchase	  	21
			
	ARTICLE 3	  	 	  	 
	 SHARE PURCHASE PRICE AND RELATED MATTERS
	  	21
	 3.1
	  	Share Purchase Price	  	21
	 3.2
	  	Payment of Share Purchase Price, Interest-Bearing Debt and Corporation Costs and Delivery of Share Certificates	  	22
	 3.3
	  	Withholdings Where Vendor is Non-Resident	  	23
	 3.4
	  	Other Withholdings	  	28
	 3.5
	  	Closing Date Statement and Actual Adjustment Amount	  	28
	 3.6
	  	Settlement Date	  	31
	 3.7
	  	[*]	  	31
	 3.8
	  	Escrow Procedure for Indemnification Claims	  	37
	 3.9
	  	Payments	  	39
			
	ARTICLE 4	  	 	  	 
	 REPRESENTATIONS AND WARRANTIES
	  	40
	 4.1
	  	Representations and Warranties of the Corporation	  	40
	 4.2
	  	Representations and Warranties of the Vendors	  	66
	 4.3
	  	Matters Relating to the Representations and Warranties by the Corporation and the Vendors	  	67

  

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	 4.4
	  	Representations and Warranties of the Purchaser	  	69
	 4.5
	  	Survival of Covenants, Representations and Warranties	  	72
			
	ARTICLE 5	  	 	  	 
	 CONDITIONS
	  	74
	 5.1
	  	Conditions for the Benefit of the Purchaser to be satisfied by the Closing Date	  	74
	 5.2
	  	Conditions for the Benefit of the Vendors to be Satisfied by the Closing Date	  	76
	 5.3
	  	Obligations not to Terminate	  	78
			
	ARTICLE 6	  	 	  	 
	 ADDITIONAL AGREEMENTS OF THE PARTIES
	  	78
	 6.1
	  	Vendors’ Representative to Represent Vendors	  	78
	 6.2
	  	Access to Information	  	81
	 6.3
	  	Conduct of Business Until Time of Closing	  	82
	 6.4
	  	Negative Covenant	  	83
	 6.5
	  	Covenants Prior to Closing	  	86
	 6.6
	  	Purchaser’s Covenant	  	87
	 6.7
	  	Insurance	  	87
	 6.8
	  	Corporate Action	  	87
	 6.9
	  	Obtaining of Consents and Approvals	  	87
	 6.10
	  	Access of the Vendors to Records	  	88
	 6.11
	  	Cooperation	  	88
	 6.12
	  	Insurance and Indemnification	  	89
	 6.13
	  	Letters of Credit	  	89
	 6.14
	  	Charges	  	90
	 6.15
	  	Tax Matters	  	90
	 6.16
	  	Non-Solicit of Employees	  	92
			
	ARTICLE 7	  	 	  	 
	 INDEMNIFICATION
	  	93
	 7.1
	  	Indemnification by the Vendors	  	93
	 7.2
	  	Indemnification by the Purchaser	  	94
	 7.3
	  	Notice of Claim	  	94
	 7.4
	  	Procedure for Indemnification	  	95
	 7.5
	  	Additional Rules and Procedures	  	97

  

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	 7.6
	  	Indemnification Claims	  	101
	 7.7
	  	Waiver	  	101
			
	ARTICLE 8	  	 	  	 
	 CLOSING
	  	101
	 8.1
	  	Location and Time of the Closings	  	101
	 8.2
	  	Closing Documents	  	102
			
	ARTICLE 9	  	 	  	 
	 TERMINATION
	  	103
	 9.1
	  	Vendors’ Right to Terminate	  	103
	 9.2
	  	Purchaser’s Right to Terminate	  	103
	 9.3
	  	No Liability for Termination	  	103
			
	ARTICLE 10	  	 	  	 
	 GENERAL MATTERS
	  	103
	 10.1
	  	Confidentiality	  	103
	 10.2
	  	Public Notices	  	104
	 10.3
	  	No Shop	  	104
	 10.4
	  	Expenses	  	104
	 10.5
	  	Assignment	  	105
	 10.6
	  	Notices	  	105
	 10.7
	  	Construction	  	107
	 10.8
	  	Time of Essence	  	107
	 10.9
	  	Further Assurances	  	107
	 10.10
	  	Counterparts	  	107

  

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confidential treatment filed separately with the Commission. 

 SHARE PURCHASE AGREEMENT 
 THIS SHARE PURCHASE AGREEMENT is made as of the 31st day of January, 2007. 
 B E T W E E N: 
 ONCAP L.P., a limited partnership organized under the laws of the
Province of Ontario 
 (“ONCAP”) 
 - and - 
 ONCAP (CAYMAN) L.P., a limited partnership organized under the laws of the Cayman
Islands 
 (“ONCAP Cayman”) 
 - and - 
 ONEX CORPORATION, a corporation incorporated under the laws of the Province of Ontario

 (“Onex”) 
 - and - 
 THE OTHER VENDORS 
 - and— 
 CMC ELECTRONICS HOLDINGS INC., a Canadian corporation 
 (the “Corporation”) 
 -
and - 
 CMC ELECTRONICS INC., a Canadian corporation 
 (“CMC Electronics”) 
 - and - 
 CMC ELECTRONICS AURORA INC., a Delaware company 
 (“CMC Aurora”) 
 - and - 
  

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confidential treatment filed separately with the Commission. 

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 ESTERLINE TECHNOLOGIES CORPORATION, a corporation incorporated under the laws of Delaware

 (the “Purchaser”) 
 RECITALS: 
  

	A.	The ONCAP Parties (as defined below) are together the majority shareholders of CMC Electronics Holdings Inc. (the “Corporation”); 

  

	B.	The ONCAP Parties and the Other Vendors (as defined below) own all of the issued and outstanding shares in the capital of the Corporation; 

  

	C.	The Corporation is the sole shareholder of CMC Electronics Inc., a corporation incorporated under the laws of Canada and CMC Electronics Inc. is the sole shareholder of CMC
Electronics Aurora Inc., a Delaware Corporation; 

  

	D.	The Purchaser wishes to purchase all of the shares in the capital of the Corporation; 

 NOW THEREFORE in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledge), the
parties agree as follows: 
 ARTICLE 1 
 INTERPRETATION 
  

	1.1	Definitions 

 In this Agreement including the
Recitals hereto, 
 1.1.1    “12 Month Release Date” has the meaning set out in section 3.8.2.1;

 1.1.2    “12 Month Released Amount” has the meaning set out in section 3.8.2.1; 
 1.1.3    “[*] Release Date” has the meaning set out in section 3.8.2.3; 
  

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 1.1.4    “Affiliate” has the meaning attributed to such term in the
Canada Business Corporations Act as the same may be amended from time to time and any successor legislation thereto; 
 1.1.5    “Agreement” means this share purchase agreement and all schedules (including, without limitation the CMC Disclosure Schedules) attached to this Agreement (including without limitations any
matters expressly contemplated to be delivered, and which have been delivered, under the schedules), in each case as they may be amended or supplemented from time to time, and the expressions “hereof”, “herein”,
“hereto”, “hereunder”, “hereby” and similar expressions refer to this Agreement and unless otherwise indicated, references to Articles and sections are to Articles and sections in this Agreement; 
 1.1.6    “Arbitrator” has the meaning set out in section 3.5.4; 
 1.1.7    “Audited Financial Statements” means the audited consolidated financial statements of the Corporation as at
and for the period ended March 31, 2006, as attached as Schedule 1.1.7; 
 1.1.8    “Available Escrow
Amount” means, at a particular time, the funds in the Escrow Amount less the aggregate amount of all claims made by the Purchaser against the Vendors under sections 3.7, 3.8 and Article 7 (if any) to the extent not paid in full or
finally dismissed in full at such time; provided, however, that to the extent the actual amount paid in respect of one or more claims is less than the full amount of such claim, the Available Escrow Amount shall at such time increase accordingly;

 1.1.9    “Business” means the business of designing, manufacturing, selling and supporting high
technology electronic products for military and commercial aviation as well as the ancillary business of reselling and servicing commercial marine electronic products and other communication systems; 
 1.1.10    “Business Day” means any day, other than Saturday, Sunday or any statutory holiday in the Province of
Ontario or in the Province of Québec; 
  

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 1.1.11    “Charge” means any security interest, lien, charge,
pledge, encumbrance, mortgage, hypothec, deed of trust, servitude, easement, trust, right-of-way, restrictive covenant, lease, sublease, option, encroachment, adverse claim or title retention agreement of any nature or kind; 
 1.1.12    “Claim”, “Original Claim” and “Third Party Claim” have the meanings
attributed to such terms respectively in section 7.3; 
 1.1.13    “Claimed Amount” has the meaning
set out in section 3.8.1; 
 1.1.14    “Claim Notice” has the meaning set out in section 7.3;

 1.1.15    “Closing” means the completion of the sale and purchase of the Purchased Shares pursuant to
this Agreement at the Time of Closing; 
 1.1.16    “Closing Date” means the third Business Day
following completion or waiver of the conditions set forth in Article 5 or such earlier or later date as may be agreed upon in writing by the parties; 
 1.1.17    “Closing Date Balance Sheet” has the meaning set out in section 3.5.1; 
 1.1.18    “Closing Date Statement” has the meaning set out in section 3.5.1; 
 1.1.19    “Closing Date Statement Dispute” has the meaning set out in section 3.5.4 
 1.1.20    “Closing Date Working Capital” has the meaning set out in Schedule 3.5.1; 
 1.1.21    “CMC Aurora” means CMC Electronics Aurora Inc., a Delaware corporation; 
 1.1.22    “CMC Electronics” means CMC Electronics Inc., a corporation incorporated under the laws of Canada; 
 1.1.23    “CMC Disclosure Schedule” is the disclosure letter of the Corporation and the CMC Subsidiaries attached to
this Agreement; 
  

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 1.1.24    “CMC Employee Plans” means any retirement, pension, profit
sharing, deferred compensation, stock bonus, savings, bonus, incentive, cafeteria, medical, dental, vision, hospitalization, life insurance, accidental death and dismemberment, medical expense reimbursement, dependent care assistance, tuition
reimbursement, disability, sick pay, holiday, vacation, severance, change of control, stock purchase, stock option, restricted stock, phantom stock, stock appreciation rights, fringe benefit or other employee benefit plan, fund, policy, program,
contract, arrangement or payroll practice of any kind (including any "employee benefit plan," as defined in section 3(3) of ERISA) or any employment, consulting or personal services contract, whether written or oral, qualified or nonqualified,
funded or unfunded, or domestic or foreign, (i) sponsored, maintained, contributed to or participated in (or required to be sponsored, maintained, contributed to or participated in) by the Corporation or any CMC Subsidiary or to which the
Corporation or any CMC Subsidiary is a party, (ii) covering or benefiting any current or former officer, employee, director, agent or independent contractor of the Corporation or any CMC Subsidiary (or any dependent or beneficiary of any such
individual), or (iii) with respect to which the Corporation or any CMC Subsidiary has (or could have) any obligation or liability; 
 1.1.25    “CMC Canadian Employee Plans” means any material CMC Employee Plans as they relate to any director, officer, employee, former employee, retiree, or any other Person, of the Corporation or any
CMC Subsidiaries in Canada or as they exist under the Laws of Canada; 
 1.1.26    “CMC US Employee
Plans” means any material CMC Employee Plan as they relate to any director, officer, employee, former employee, retiree, or any other Person, of the Corporation or any CMC Subsidiaries in the United States or as they exist under the Laws of
the United States; 
 1.1.27    “CMC Intellectual Property Rights” means any material Intellectual
Property Rights currently owned by the Corporation or any of the CMC Subsidiaries that are used for the conduct of the Business; 
  

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 1.1.28    “CMC Subsidiaries” means all of the Subsidiaries of the
Corporation (whether owned directly or through one or more other Subsidiaries); 
 1.1.29    “Code”
means the Internal Revenue Code of 1986, and any regulation and rulings promulgated thereunder, all as amended and in effect from time to time; 
 1.1.30    “Commissioner” means the Commissioner of Competition appointed under the Competition Act; 
 1.1.31    “Competition Act” means the Competition Act (Canada), as amended, together with the regulations promulgated thereunder; 
 1.1.32    “Competition Tribunal” means the Competition Tribunal established under the Competition Act; 

1.1.33    “Confidential Information Memorandum” means the confidential information memorandum relating to the
Corporation distributed by Jeffries Quarterdeck in 2006 pursuant to a confidentiality agreement dated October 2, 2006; 
 1.1.34    “Consideration” has the meaning set out in section 3.3.1.1; 
 1.1.35    “Continuing Obligations” has the meaning set out in section 5.3; 
 1.1.36    “Contract” means any contract, agreement, license, franchise, lease, permit, arrangement, commitment, understanding or other right or obligation, oral or written, to which the Corporation or
any of the CMC Subsidiaries is party or by which the Corporation or any of the CMC Subsidiaries is or any of their properties are bound or affected; 
 1.1.37    “Corporation Costs” has the meaning attributed in section 3.2.2; 
 1.1.38    “Corporation’s Regulatory Approvals” has the meaning set out in section 4.1.3.1; 
  

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 1.1.39    “Damages” means all losses, damages, fines, penalties,
liabilities, obligations and reasonable expenses, including court costs, any reasonable attorneys’ fees and expenses and interest; 
 1.1.40    “Deficiency” has the meaning set out in section 3.2.6.2; 
 1.1.41    “Designated Representative” has the meaning attributed to it in the Voting and Deposit Agreement; 
 1.1.42    “DOJ” means the Antitrust Division of the Department of Justice; 
 1.1.43    “Employee Shareholders” has the meaning attributed to it in the USA; 
 1.1.44    “Environmental Law” means all applicable Laws relating to pollution or protection of human health (as it relates to pollution) or the environment; 
 1.1.45    “ERISA” means the Employee Retirement Income Security Act of 1974, and any regulations and rulings
promulgated thereunder, all as amended and in effect from time to time; 
 1.1.46    “ERISA Affiliate”
means any corporation, partnership, limited liability company, sole proprietorship, trade, business or other entity or organization that, together with the Corporation or any CMC Subsidiary, is (or, at the relevant time, was) treated as a single
employer under section 414(b), (c), (m) or (o) of the Code; 
 1.1.47    “Escrow Agent” means
the escrow agent pursuant to the Escrow Agreement; 
 1.1.48    “Escrow Agreement” means the escrow
agreement in substantially the form attached hereto in Schedule 1.1.48, subject to review by the Escrow Agent; 
 1.1.49    “Escrow Amount” means, at a particular time, the amount held by the Escrow Agent pursuant to the terms of the Escrow Agreement (whether or not a claim has been made by the Purchaser in respect
of some or all of such amount); for greater certainty, as at the Time of Closing, the Escrow Amount is $25,000,000, which amount shall be reduced pursuant to sections 3.6, 3.7, 3.8 and Article 7; 
  

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 1.1.50    “Exchange Fund Agent” means the exchange fund agent
pursuant to an exchange fund agreement with the Vendors’ Representative, on behalf of the Vendors, in respect of the disbursement of funds to the Vendors; 
 1.1.51    “Final Certificate Delivery Day” has the meaning set out in section 3.3.1.3; 
 1.1.52    “Final Order” has the meaning set out in section 3.8.1.1; 
 1.1.53    “FTC” means the Bureau of Competition of the Federal Trade Commission; 
 1.1.54    “Governmental Entity” means any (a) multinational, federal, provincial, state, regional, municipal, local or other government, governmental or public department, central bank, court,
tribunal, arbitral body, commission, board, bureau or agency, domestic or foreign, (b) any subdivision, agent, commission, board, or authority of any of the foregoing, or (c) any quasi-governmental or private body exercising any
regulatory, expropriation or taxing authority under or for the account of any of the foregoing; 
 1.1.55    "Hazardous Substance" shall mean any waste or other material defined pursuant to Environmental Law as "hazardous", "toxic", "severely toxic", "acutely toxic", "dangerous", "corrosive", "ignitable" or
"toxic", and shall include, without limitation, polychlorinated biphenyls, chlorinated solvents and asbestos; 
 1.1.56    “HSR Act” means the Antitrust Improvements Act of 1976, as amended; 
 1.1.57    “Indebtedness” means, as to any Person, (i) the principal of, interest accrued on and any other premiums, prepayment charges or penalties with respect to (A) interest-bearing
indebtedness for money borrowed by such Person and (B) indebtedness evidenced by notes, debentures, bonds or other similar instruments of such Person representing extensions of credit; (ii) obligations of such Person to pay rent under any
lease of personal property, which obligations are required to be classified and accounted for as a capital lease on a balance sheet prepared in accordance with Canadian generally accepted accounting principles, and the amount of such obligations
shall be the capitalized amount thereof determined in accordance with Canadian generally accepted accounting principles; 

  

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and (iii) obligations of the type referred to in clauses (i) and (ii) of other Persons guaranteed by the Corporation or any CMC
Subsidiary or secured by any Charge on any property or asset of the Person as to which Indebtedness is being determined but, for greater certainty, excluding trade payables and accrued liabilities made in the ordinary course; for greater certainty
and without limitation, the term Indebtedness does not include any liability arising from or in respect of any other defined-benefit, post-retirement or retirement compensation plan of the Corporation or its Subsidiaries; 
 1.1.58    “Indemnification Cap” has the meaning set out in section 7.5.4; 
 1.1.59    “Indemnification Delivery Date” has the meaning set out in section 3.8.1; 
 1.1.60    “Indemnified Party” has the meaning set out in section 7.3; 
 1.1.61    “Institutional Vendors” means Caisse de dépôt et placement du Québec, General Electric
Capital Corporation, The Bank of Nova Scotia, MG Stratum Fund II, Limited Partnership and CSP Equity Partners XXI, Inc.; 
 1.1.62    “Intellectual Property Rights” means rights in and to trade mark registrations and applications, common law trade marks, domain names, patent registrations and applications, registered and
unregistered copyrights, industrial design registrations and applications, inventions, and trade secrets under any law of any jurisdiction where the Corporation and CMC Subsidiaries conduct Business; 
 1.1.63    “Interest-Bearing Debt” means the Indebtedness set out at Schedule 1.1.63; 
 1.1.64    “IRS” means the United States Internal Revenue Service; 
 1.1.65    “ITA” means the Income Tax Act (Canada) as now in effect and as it may be amended from time to time
prior to the Closing Date; 
 1.1.66    “Key Employees” means Bruce Bailey, Patrick Champagne, Gerald
Charland, Jean-Michel Comtois, Eric Lemay, Jean-Pierre Mortreux, James Palmer, Jean-Denis Roy, Greg Yeldon and Francois Dorval; 
  

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 1.1.67    “Knowledge of the Corporation” means the actual knowledge
of Bruce Bailey, Patrick Champagne, Gerald Charland, Jean-Michel Comtois, Eric Lemay, Jean-Pierre Mortreux, James Palmer, Jean-Denis Roy, Greg Yeldon, Francois Dorval and Gregory Baylin; 
 1.1.68    “Laws” means any foreign, federal, provincial, state or local law, rule, regulation, injunction, ruling,
judgment, arbitration award, order, decree or other restriction of any Governmental Entity; 
 1.1.69    “Limit
Amount” has the meaning set out in section 7.5.4.3; 
 1.1.70    “Material Adverse Effect”
when used in connection with a Person means any matter, condition, event, circumstances development or action that, individually or in the aggregate, has an effect that is material and adverse to the business, assets, liabilities, operations,
financial results, condition, or result of operations of such Person and its Subsidiaries, taken as a whole; provided, however, that (i) events, circumstances, changes or effects arising out of or attributable to general economic conditions,
(ii) events, circumstances, changes or effects affecting the securities markets generally, (iii) events, circumstances, changes or effects affecting the industry in which the Business operates in general and not specifically related to the
Business, (iv) the outbreak or escalation of hostilities involving the United States or Canada or the declaration by the United States or Canada of a national emergency or war or the occurrence of any other calamity or crisis involving the
United States or Canada, or (v) any changes to applicable Laws or to generally accepted accounting principles shall not be considered (or taken into account in determining whether there has been) a Material Adverse Effect for any purpose
hereunder, provided in each case that such event, circumstance, change, effect does not materially disproportionately affect the Corporation, its Subsidiaries or the Business relative to its competitors; 
 1.1.71    “Material Contracts” means any Contract, to which the Corporation or any CMC Subsidiary is a party, if the
Contract, (i) requires or may require the provision by the Corporation or any of the CMC Subsidiaries to any Person of goods or services having a 

  

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fair market value in excess of $2,000,000, (ii) requires or may require the provision by any Person to the Corporation or any of the CMC Subsidiaries of
goods or services having a fair market value in excess of $2,000,000; (iii) prohibits the Corporation or any CMC Subsidiary from engaging in, or otherwise restricts its ability to engage in, any line of business (not including restrictions on
the sale of particular products) anywhere in the world or to solicit clients or potential clients excluding any contracts which provide most favoured pricing provisions (or similar provisions); (iv) grants a power of attorney to act on behalf
of the Corporation or any CMC Subsidiaries, other than to employees, officers and directors to enter into certain specified Contracts; (v) creates a partnership, joint venture or other similar arrangement with a person that is not a CMC
Subsidiary; (vi) has a lease or rent amount in excess of $70,000 per year and involves a lease, sublease, or similar arrangement pursuant to which the Corporation or any CMC Subsidiary uses real property that is not owned by the Corporation or
the CMC Subsidiaries or pursuant to which the Corporation or the CMC Subsidiaries permit the use of facilities owned by the Corporation or the CMC Subsidiaries by a person that is not a CMC Subsidiary; (vii) relates to the acquisition by the
Corporation or any CMC Subsidiary within the last 2 years of any operating business or the capital stock of any other Person; (viii) all written Contracts relating to employment, compensation, benefits, termination, retention and severance
(other than the standard employee manuals and other than conditions of employment having a base annual remuneration of $125,000 or less); (ix) creates a tax sharing arrangement involving an unaffiliated Person; 
 1.1.72    “Material Subsidiary” means CMC Electronics, and CMC Aurora and any other Subsidiary that is actively
engaged in the Business; 
 1.1.73    “Non-Resident Vendors” means those Vendors set out on
Schedule 1.1.73 under the heading “Federal” in respect of section 3.3.1 or under the heading “Quebec” in respect of section 3.3.2; 
 1.1.74    “Non-Resident Vendor Partnership” has the meaning set out in section 3.3.1.7 and section 3.3.2.6; 
  

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 1.1.75    “ONCAP Parties” means ONCAP, ONCAP Cayman and Onex;

 1.1.76    “Ontario Courts” has the meaning set out in section 1.11; 
 1.1.77    “Options” means any options, warrants, conversion privileges or other rights, agreements, arrangements or
commitments (pre-emptive, contingent or otherwise) entitling the holder to purchase or otherwise receive Shares; 
 1.1.78    “Ownership of Share Representations” has the meaning set out in section 4.5.1.2; 
 1.1.79    “Other Vendors” means the Institutional Vendors, Jean-Pierre Mortreux, Jean-Denis Roy, James Wimmers, Gregory A. Yeldon, Mark MacTavish and Jean-Pierre Mortreux in his capacity as Designated
Representative on behalf of the Employee Shareholders and those holders of Options who elect to exercise such Options to purchase or otherwise receive Shares on or prior to the Closing Date; 
 1.1.80    “Permitted Charges” means (a) Charges and liens for Taxes not yet due or payable or which are being
contested in good faith by appropriate proceedings diligently conducted, provided that adequate reserves with respect to contested Taxes are maintained on the books of the Corporation or the CMC Subsidiaries; (b) Charges imposed by Law, such as
materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s liens and other similar Charges arising in the ordinary course of business securing obligations that are not yet due or payable or which are being contested in
good faith by appropriate proceedings diligently conducted (and for which adequate reserves are maintained on the books and records of the Corporation or the CMC Subsidiaries); (c) pledges or deposits to secure obligations under workers’
compensation Laws, unemployment insurance Laws or similar legislation or to secure public or statutory obligations; (d) deposits to secure the performance of bids, tenders, trade contracts (other than for borrowed money), leases or statutory
obligations, or surety and appeal bonds, letters of credit, performance bonds and other obligations of a like nature incurred in the ordinary course of business consistent with past practice; (e) all matters of record, including encroachment
agreements, restrictive covenants, survey exceptions, reciprocal easement agreements and other Charges 

  

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registered against title to any real property which either (i) will be removed at Closing or (ii) do not materially impair the current use of such
property; (f) minor title defects or irregularities which do not in the aggregate materially impair the use of the land concerned for the purpose for which it is being held, and which: (i) are of record; and/or (ii) would be disclosed
by an up to date survey of the land and all buildings, structures and other improvements located thereon, therein or thereunder; and/or (iii) would be disclosed by conducting those lien searches and/or off-title enquiries which are customary in
connection with the direct or indirect purchase of real property of a nature similar to that real property which is owned or leased by the Corporation or by a CMC Subsidiary; (g) easements or reservations of, or rights of others for, licenses,
rights-of-way, sewers, electric lines, telegraph and telephone lines, or other similar utilities which do not materially impair the current use of such real property and which: (i) are of record; and/or (ii) would be disclosed by an up to
date survey of the land and all buildings, structures and other improvements located thereon, therein or thereunder; and/or (iii) would be disclosed by conducting those lien searches and/or off-title enquiries which are customary in connection
with the direct or indirect purchase of real property of a nature similar to that real property which is owned or leased by the Corporation or by a CMC Subsidiary; (h) zoning or other restrictions as to the use of a real property which do not
materially impair the current use of such real property; (i) all subsisting restrictions, exceptions, reservations, limitations provisions and condition expressed in any original grants for the Crown and any statutory limitations, exceptions
reservations and qualifications on real property; (j) Charges set forth in the CMC Disclosure Schedule; (k) the lease for 415 Legget Drive, Kanata, Ontario in the Kanata North Business Park from 415 Legget Leaseholds Inc. to CMC
Electronics and any notice thereof; (l) The lease for 84 North Dugan Road, Sugar Grove, Illinois in the Aero Corporate Park from L.H. & F. to CMC Aurora and any notice thereof; and (m) the rights of CMC Electronics under lease
agreement between CMC Electronics and CMC Electronics Military Communications Inc.; 
 1.1.81    “Person” includes any individual, firm, partnership, joint venture, venture capital fund, association, trust, trustee, executor, administrator, legal personal representative, 

  

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estate, group, body corporate, corporation, unincorporated association or organization, Governmental Entity, syndicate or other entity, whether or not having
legal status; 
 1.1.82    “Personal Information” means information about an identifiable individual
that is subject to Privacy Law; 
 1.1.83    “Pre 12 Month Unresolved Claims” has the meaning set out in
section 3.8.2.1; 
 1.1.84    “Pre [*] Unresolved Claims” has the meaning set out in
section 3.8.2.3; 
 1.1.85    “Privacy Law” means any law, regulation or rule governing the
collection, use and disclosure of Personal Information, including the Personal Information Protection and Electronic Documents Act (Canada) and any comparable law, regulation or rule of any province or territory of Canada; 
 1.1.86    “Proceedings” means court, administrative, regulatory or similar proceedings, arbitration or other dispute
settlement procedure or investigation by any governmental, administrative, regulatory or similar body or any similar matter or proceeding; 
 1.1.87    “Pro Rata Share” means, with respect to a Vendor and with respect to an amount such Vendor is entitled to receive or obligated to pay to the Purchaser, the percentage set forth opposite the
name of such Vendor in Schedule 1.1.87 under the column “Pro Rata Share”, as such schedule is updated from time to time prior to the Closing to reflect the exercise of Options; 
 1.1.88    “Purchased Shares” means 76,127,067 Class A common shares in the capital of the Corporation, being
all of the issued and outstanding shares in the capital of the Corporation as of the date hereof; provided such number may increase or decrease in the manner set forth in section 4.1.2 of the CMC Disclosure Schedule; 
 1.1.89    “Purchaser” means Esterline Technologies Corporation; 
  

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 1.1.90    “Purchaser’s Counsel” means the firms of Perkins Coie
LLP and Fasken Martineau DuMoulin LLP, or such other counsel as the Purchaser may appoint with respect to this Agreement and the matters contemplated hereby; 
 1.1.91    “Purchaser’s Regulatory Approvals” has the meaning set out in section 4.4.2.3; 
 1.1.92    “QTA” means the Taxation Act (Quebec); 
 1.1.93    “Quebec Withheld Amount” has the meaning set out in section 3.3.2.2; 
 1.1.94    “Quebec Final Certificate Delivery Date” has the meaning set out in section 3.3.2.2; 
 1.1.95    “Receiver General of Canada” has the meaning set out in section 3.3.1.2; 
 1.1.96    “Retention Bonuses” means the list of retention bonuses and special retention arrangements described in Schedule 1.1.96 which provide for the payment of retention bonuses at and after
Closing to certain officers and employees of the Corporation or the CMC Subsidiaries; 
 1.1.97    “Retention
Bonus Indemnity” has the meaning set out in section 7.1.1(c); 
 1.1.98    “Retention Escrow
Agent” means the escrow agent pursuant to the Retention Escrow Agreement; 
 1.1.99    “Retention Escrow
Agreement” means an escrow agreement to be entered into between the Purchaser, the Corporation, certain officers and employees of the Corporation and the CMC Subsidiaries, the Retention Escrow Agent and the Vendors’ Representative
relating to the amounts contemplated by section 3.2.2.2. 
 1.1.100    “Settlement Date” has the
meaning set out in section 3.6; 
 1.1.101    “Share Purchase Price” has the meaning set out in
section 3.1; 
 1.1.102    “Shares” means the Class A common shares and Class B
Convertible, Redeemable Non-Voting Shares in the capital of the Corporation; 
  

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 1.1.103    “Subsidiary” of any Person means (i) any corporation
or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are directly or indirectly owned by such Person and
(ii) any partnership of which such Person is a general partner; for greater certainty, any subsidiary, directly or indirectly, of a Subsidiary of a Person shall be considered a Subsidiary of the Person; 
 1.1.104    “Surplus” has the meaning set out in section 3.2.6.1; 
 1.1.105    “Target Balance Sheet” means the consolidated balance sheet of the Corporation attached at
Schedule 1.1.105; 
 1.1.106    “Target Working Capital” means $26,538,000; 
 1.1.107    “Target Working Capital Statement” means the consolidated sample working capital statement of the
Corporation attached at Schedule 1.1.107; 
 1.1.108    “Tax” and “Taxes” means,
with respect to any entity, (A) all income taxes (including any tax on or based upon net income, gross income, earnings, profits or selected items of income) and all capital taxes, gross receipts taxes, sales taxes, use taxes, ad valorem taxes,
value added taxes, transfer taxes, franchise taxes, license taxes, withholding taxes, payroll taxes, employment taxes, Canada or Québec Pension Plan premiums, excise, social security premiums, workers’ compensation premiums, unemployment
insurance or compensation premiums, stamp taxes, occupation taxes, property taxes, alternative or add-on minimum taxes, goods and services tax, customs duties or other taxes, fees, imports, assessments or charges of any kind whatsoever, including
for greater certainty U.S. federal, state, local and foreign taxes, together with any interest and penalties imposed with respect to the foregoing, whether disputed or not, and (B) any liability for the payment by the Corporation or the CMC
Subsidiaries of any amount of the type described in the immediately preceding clause (A) of another entity, whether arising by contract, operation of Law or otherwise; 
 1.1.109    “Tax Indemnity” has the meaning set out in section 7.1.1(d); 
  

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 1.1.110    “Tax Returns” means all returns, declarations, reports,
information returns and statements required to be filed with any taxing authority relating to Taxes (including any attached schedules), including, without limitation, any claim for refund, amended return and declaration of estimated Tax; 

1.1.111    “Third Party” has the meaning set out in section 7.5.5; 
 1.1.112    “Third Party Claimant” has the meaning set out in section 7.3; 
 1.1.113    “Time of Closing” means 9:00 a.m., Toronto time, on the Closing Date, as the context may require, or
such other time on the Closing Date as may be agreed upon in writing by the parties; 
 1.1.114    “Unaudited
Statements” means the unaudited consolidated balance sheet of the Corporation and the CMC Subsidiaries as at September 30, 2006 and the accompanying consolidated statements of income, shareholders equity and cash flow, for the 6 months
then ended attached as Schedule 1.1.114; 
 1.1.115    “USA” means the unanimous shareholders
agreement of the Corporation dated April 11, 2001, as such agreement may have been amended or supplemented from time to time; 
 1.1.116    “U.S. Subsidiary” means any Subsidiary of the Corporation incorporated, formed, organized or otherwise existing in the United States; 
 1.1.117    “Vendors” means the ONCAP Parties and the Other Vendors; 
 1.1.118    “Vendors’ Counsel” means the firm of Torys LLP of Toronto, Ontario, or such other counsel as
the Vendors may appoint with respect to this Agreement and the matters contemplated hereby; 
 1.1.119    “Vendors’ Representative” means ONCAP, in its capacity as representative of the Vendors as further described in section 6.1; 
  

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 1.1.120    “Vendors’ Representative Indemnified Party” has the
meaning set out in section 6.1.4; 
 1.1.121    “Voting and Deposit Agreement” means the voting and
deposit agreement dated April 11, 2001 between the Corporation and Designated Representative on behalf of the Employee Shareholders; 
 1.1.122    “Withheld Amount” has the meaning set out in section 3.3.1.2; and 
 1.1.123    “Withholding Agent” means the withholding agent pursuant to a withholding agent agreement with the Vendors’ Representative, on behalf of the Vendors, and the Purchaser. 
  

	1.2	Schedules 

 In addition to the CMC Disclosure
Schedule, the following are the schedules attached to this Agreement: 
  

					
	 Schedule 1.1.7
	  	–	    	Audited Financial Statements
	 Schedule 1.1.48
	  	–	    	Form of Escrow Agreement
	 Schedule 1.1.63
	  	–	    	Interest-Bearing Debt
	 Schedule 1.1.73
	  	–	    	Non-Resident Vendors
	 Schedule 1.1.87
	  	–	    	Pro Rata Share of Vendors
	 Schedule 1.1.96
	  	–	    	Retention Bonuses
	 Schedule 1.1.105
	  	–	    	Target Balance Sheet
	 Schedule 1.1.107
	  	–	    	Target Working Capital Statement
	 Schedule 1.1.114
	  	–	    	Unaudited Statements
	 Schedule 1.6
	  	–	    	Selected Accounting Principles, Policies and
Practices of the Corporation and the CMC
Subsidiaries in respect of Working Capital
Components
	 Schedule 3.5.1
	  	–	    	Determination of Closing Date Statement
	 Schedule 3.7.1
	  	–	    	Budget
	 Schedule 4.2.3
	  	–	    	Canadian Resident Employee Shareholders
	 Schedule 4.4.2.3
	  	–	    	Purchaser’s Regulatory Approvals
	 Schedule 4.4.3
	  	–	    	Purchaser Litigation
	 Schedule 5.1.8
	  	–	    	Form of Legal Opinion
	 Schedule 5.2.7
	  	–	    	Letters of Credit
	 Schedule 6.9
	  	–	    	Consents and Approvals

  

	1.3	Headings and Table of Contents 

 The inclusion of
headings and a table of contents in this Agreement is for convenience of 

  

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reference only and shall not affect the construction or interpretation hereof. 
  

	1.4	Gender and Number 

 In this Agreement, unless the
context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders. 
  

	1.5	Currency 

 Except where otherwise expressly
provided, all amounts in this Agreement are stated and shall be paid in Canadian currency. 
  

	1.6	Generally Accepted Accounting Principles 

 In this
Agreement, except to the extent otherwise expressly provided, references to “generally accepted accounting principles” mean, Canadian generally accepted accounting principles as provided from time to time by the Canadian Institute of
Chartered Accountants consistent with past practice of the Corporation or its relevant Subsidiaries, including, but not limited to, the accounting principles, policies and practices of the Corporation set out in Schedule 1.6. 
  

	1.7	Invalidity of Provisions 

 Each of the provisions
contained in this Agreement is distinct and severable and a declaration of invalidity or unenforceability of any such provision or part thereof by a court of competent jurisdiction shall not affect the validity or enforceability of any other
provision hereof. 
  

	1.8	Entire Agreement 

 This Agreement constitutes the
entire agreement between the parties pertaining to the subject matter of this Agreement. There are no warranties, conditions, or representations (including any that may be implied by statute) and there are no agreements in connection with such
subject matter except as specifically set forth or referred to in this Agreement (or any amendment hereto). No reliance is placed on any warranty, representation, opinion, advice or assertion of fact made either prior to, contemporaneous with, or
after entering into this Agreement, or any amendment or supplement thereto, by any party to this Agreement or its 

  

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directors, officers, employees or agents, to any other party to this Agreement or its directors, officers, employees or agents, except to the extent that the
same has been reduced to writing and included as a term of this Agreement, and none of the parties to this Agreement has been induced to enter into this Agreement or any amendment or supplement by reason of any such warranty, representation,
opinion, advice or assertion of fact. Accordingly, there shall be no liability, either in tort or in contract, assessed in relation to any such warranty, representation, opinion, advice or assertion of fact, including, for greater certainty, any
statement made in the Confidential Information Memorandum and representations, statements and discussions made in management presentations (and follow-up presentations, meetings and discussions) by any of the Vendors, the Corporation and/or the
Subsidiaries of the Corporation to the Purchaser regarding the Corporation, any CMC Subsidiary or the Business, except to the extent contemplated above. 
  

	1.9	Waiver, Amendment 

 Except as expressly provided in
this Agreement, no amendment or waiver of this Agreement shall be binding unless executed in writing by the party to be bound thereby (which execution by the Vendors’ Representative represents execution by all the Vendors). No waiver of any
provision of this Agreement shall constitute a waiver of any other provision nor shall any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly provided. 
  

	1.10	Governing Law 

 This Agreement shall be governed by
and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein. 
  

	1.11	Submission to Jurisdictions 

 Except for any
disputes relating to the Closing Date Statement, which shall be resolved as set out at section 3.5.4, all disputes, claims, litigation, proceedings or other legal actions arising under or relating to this Agreement shall be instituted in the
courts of the Province of Ontario (the “Ontario Courts”). The parties each irrevocably submit to the exclusive jurisdiction of the Ontario Courts with respect to any such dispute, claim, litigation, proceeding or other legal action arising
under or relating to this Agreement, and waive personal service of any and all 

  

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process upon it, and consent that all services of process be made by registered or certified mail, return receipt requested, directed to it at its address as
set out in section 10.6, and service so made shall be deemed to be completed when received. The parties each irrevocably waive any defense or objection it may now or hereafter have based on forum non conveniens and waive any objection to
venue of any action instituted hereunder. Nothing in this paragraph shall affect the right of the parties to serve legal process in any other manner permitted by Law. 
 ARTICLE 2 
 PURCHASED SHARES 
  

	2.1	Agreement to Purchase and Sell Purchased Shares 

 Subject to the terms of this Agreement, the Vendors shall sell, and the Purchaser shall purchase, the Purchased Shares. 
  

	2.2	Completion of Purchase 

 Subject to the terms of
this Agreement, the sale and purchase of the Purchased Shares will be completed at the Time of Closing on the Closing Date in accordance with the other terms and conditions of this Agreement. 
 ARTICLE 3 
 SHARE PURCHASE PRICE AND RELATED MATTERS 
  

	3.1	Share Purchase Price 

 Subject to the adjustments
pursuant to section 3.2.6, the aggregate purchase price payable by the Purchaser to the Vendors for the Purchased Shares shall be equal to $391,500,000 less the aggregate of the amounts to be paid by the Purchaser or the Corporation pursuant to
sections 3.2.1 and 3.2.2 and any Taxes applicable on those amounts that are to be paid by the Corporation, its Subsidiaries or by the Purchaser as paying agent of the Corporation or its Subsidiaries (such amount being the “Share Purchase
Price”). The Share Purchase Price shall be paid by the Purchaser to the Vendors in accordance with section 3.9 at the Closing. Each of the Vendors shall receive its Pro Rata Share of any amount to be paid to the Vendors. 
  

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	3.2	Payment of Share Purchase Price, Interest-Bearing Debt and Corporation Costs and Delivery of Share Certificates 

 3.2.1    At the Closing, the Purchaser shall pay, on behalf of CMC Electronics Inc. and the Corporation, to each creditor of
Interest-Bearing Debt the amount of Indebtedness owing to such creditor (which amount shall be the amount set forth in the applicable creditor’s payoff letter, in form reasonably acceptable to Purchaser, which the Corporation will cause to be
delivered to the Purchaser) in immediately available funds in such manner as directed by the creditor; 
 3.2.2    On or
after the Closing, the Corporation, on its own behalf and on behalf of itself and its Subsidiaries, shall pay the following amounts (the “Corporation Costs”): 
 3.2.2.1    that portion of the Retention Bonus payable to the applicable officers and employees of the Corporation and its
Subsidiaries at Closing; 
 3.2.2.2    the remainder of the Retention Bonus applicable to officers of the Corporation
and its Subsidiaries (for greater certainty representing that portion of the Retention Bonus payable immediately prior to the 6-month anniversary of the Closing) to the Retention Escrow Agent to be held in escrow pursuant to the Retention Escrow
Agreement; 
 3.2.2.3    all transactions costs of the Corporation and its Subsidiaries (including without limitation
investment banking fees, legal fees, accounting fees and all other fees of its advisors); and 
 3.2.2.4    to each of
the holders of Options who have elected to have their Options cancelled, the amount owing to such holders of Options. 
 3.2.3    At the Closing, the Purchaser shall pay to the Escrow Agent the Escrow Amount; 
 3.2.4    At the Closing, the Purchaser shall pay to the Exchange Fund Agent the Share Purchase Price less the amounts paid by the Purchaser pursuant to section 3.2.3 and less the amount transferred to the
Withholding Agent pursuant to section 3.3. 
  

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 3.2.5    At the Closing, the Vendors shall deliver to the Purchaser share
certificates representing the Purchased Shares duly endorsed in blank for transfer or accompanied by duly signed powers of attorney for transfer in blank. 
 3.2.6    At the Settlement Date: 
 3.2.6.1    if the Closing Date
Working Capital is greater than the Target Working Capital, (i) the Share Purchase Price shall be increased by such difference (the “Surplus”) and (ii) the Purchaser shall pay to the Exchange Fund Agent the Surplus subject to
applicable withholding, if any; or 
 3.2.6.2    if the Closing Date Working Capital is less than the Target Working
Capital, (i) the Share Purchase Price shall be decreased by such difference (the “Deficiency”) and (ii) the Vendors’ Representative and the Purchaser shall issue a joint direction to the Escrow Agent to pay to the Purchaser
the Deficiency together with interest actually earned on such amount in accordance with section 3.6. 
  

	3.3	Withholdings Where Vendor is Non-Resident 

 3.3.1    Federal Withholdings. 
 3.3.1.1    If a certificate issued under
subsection 116(2) of the ITA properly describing the Purchased Shares owned by a Non-Resident Vendor is not delivered to the Purchaser on or before the Closing Date, the Purchaser shall transfer to the Withholding Agent 25% of the Pro Rata
Share of the Share Purchase Price (the “Consideration”) in accordance with the terms of this section 3.3. 
 3.3.1.2    If the Purchaser has transferred an amount to the Withholding Agent (the “Withheld Amount”) in respect of a Non-Resident Vendor pursuant to section 3.3.1.1, the Withholding Agent shall invest,
on behalf of such Non-Resident Vendor, the Withheld Amount in one or more investments the interest on which is not subject to Canadian withholding Tax under Part XIII of the ITA 
  

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and which investments are otherwise agreed to by the Non-Resident Vendor and the Purchaser from the date of receipt until the earlier of the date on which
the Withheld Amount (or a portion thereof) is delivered to such Non-Resident Vendor or remitted to the Receiver General of Canada. 
 3.3.1.3    If the Non-Resident Vendor delivers to the Purchaser and the Withholding Agent, prior to the 28th day after the end of the month in which the Closing occurs (or such later time if the Canada Revenue
Agency confirms in writing in form and substance satisfactory to the Purchaser that it will not enforce the remittance of funds as required by subsection 116(5) of the ITA) (the “Final Certificate Delivery Day”), a certificate issued under
subsection 116(2) of the ITA with a certificate limit at least equal to the Consideration or a certificate issued under subsection 116(4) of the ITA, the Purchaser shall promptly direct the Withholding Agent to pay to the Exchange Fund
Agent, on behalf of the Non-Resident Vendor, the Withheld Amount, together with any interest earned thereon. 
 3.3.1.4    In the event that the Non-Resident Vendor delivers a certificate issued under subsection 116(2) of the ITA properly describing the Purchased Shares owned by that Vendor and having a certificate limit that
is less than the Consideration: 
  

	 	(A)	where such certificate is delivered on or before the Closing Date, the Purchaser shall withhold and remit to the Receiver General of Canada 25% of the amount by which the
Consideration exceeds the certificate limit; 

  

	 	(B)	where such certificate is delivered after the Closing Date and prior to the Final Certificate Delivery Day, the Purchaser shall: 

  

	 	(i)	 direct the Withholding Agent to remit to the Receiver General of Canada the lesser of the Withheld Amount and 

  

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	 	25% of the amount by which the Consideration exceeds the certificate limit; and 

  

	 	(ii)	direct the Withholding Agent to promptly pay to the Exchange Fund Agent, on behalf of the Non-Resident Vendor, the amount, if any, by which the Withheld Amount exceeds the amount
remitted to the Receiver General of Canada under subsection 3.3.1.4(B)(i), together with any interest earned thereon; 

 and the Purchaser shall have no future obligations to the Non-Resident Vendor under this section 3.3. 
 3.3.1.5    If a Non-Resident Vendor does not deliver to the Purchaser, prior to the Final Certificate Delivery Day, a certificate issued under subsection 116(2) or (4) of the ITA properly describing the
Purchased Shares owned by that Vendor and the Purchaser has transferred the Withheld Amount to the Withholding Agent, the Purchaser shall direct the Withholding Agent to remit to the Receiver General of Canada the Withheld Amount pursuant to
section 116 of the ITA. Any interest earned on the Withheld Amount shall be paid to the Non-Resident Vendor at that time. 
 3.3.1.6    Any amount remitted to the Receiver General of Canada by the Purchaser or the Withholding Agent pursuant to section 3.3 shall be credited to the Purchaser as a payment to the Non-Resident Vendor on
account of his Pro Rata Share of the Share Purchase Price. 
 3.3.1.7    For each Vendor that is a partnership that is
not a Canadian Partnership within the meaning of the ITA and in respect of which an amount must be transferred to the Withholding Agent pursuant to section 3.3.1.1 (“Non-Resident Vendor Partnership”), section 3.3.1.1 will apply
only to the extent of those partners of the Non-Resident Vendor Partnership that are not residents of Canada within the meaning of the ITA and section 3.3.1 shall be read mutatis mutandis. 
  

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 3.3.2    Quebec Withholdings. 
 3.3.2.1    If a certificate issued under section 1098 of the QTA describing the Purchased Shares owned by a Non-Resident Vendor
is not delivered to the Purchaser on or before the Closing Date, the Purchaser shall transfer to the Withholding Agent 12% of the Consideration in accordance with the terms of this section 3.3.2.1. 
 3.3.2.2    If the Purchaser has transferred an amount to the Withholding Agent in respect of a Non-Resident Vendor pursuant to
section 3.3.2.1 (the “Quebec Withheld Amount”) and such Non-Resident Vendor delivers to the Purchaser and the Withholding Agent, prior to the 28th day after the end of the month in which the Closing occurs (“Quebec Final
Certificate Delivery Day”), a certificate issued under section 1098 of the QTA with a certificate limit at least equal to the Consideration or a certificate issued under section 1100 of the QTA, the Purchaser shall promptly direct the
Withholding Agent to pay to the Exchange Fund Agent, on behalf of the Non-Resident Vendor, the Quebec Withheld Amount. 
 3.3.2.3    In the event that the Non-Resident Vendor delivers a certificate issued under section 1098 of the QTA properly describing the Purchased Shares owned by that Vendor and having a certificate limit that is
less than the Consideration: 
  

	 	(A)	where such certificate is delivered on or before the Closing Date, the Purchaser shall withhold and remit to the Minister of Revenue for Quebec 12% of the amount by which the
Consideration exceeds the certificate limit; 

  

	 	(B)	where such certificate is delivered after the Closing Date and prior to the Quebec Final Certificate Delivery Day, the Purchaser shall: 

  

	 	(ii)	 direct the Withholding Agent to remit to the Minister of Revenue for Quebec the lesser of the Quebec Withheld 

  

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Amount and 12% of the amount by which the Consideration exceeds the certificate limit; and 

  

	 	(iii)	direct the Withholding Agent to promptly pay to the Exchange Fund Agent, on behalf of the Non-Resident Vendor, the amount, if any, by which the Quebec Withheld Amount exceeds the
amount remitted to the Minister of Revenue for Quebec under subsection 3.3.2.3(B)(iii); 

 and the Purchaser shall have
no future obligations to the Non-Resident Vendor under this section 3.3. 
 3.3.2.4    If a Non-Resident Vendor
does not deliver to the Purchaser prior to the Quebec Final Certificate Delivery Day a certificate issued under section 1098 or 1100 of the QTA properly describing the Purchased Shares owned by that Vendor and the Purchaser has withheld the
Quebec Withheld Amount, the Purchaser shall remit to the Minister of Revenue for Quebec the Quebec Withheld Amount pursuant to sections 1097 and following of the QTA. 
 3.3.2.5    Any amount remitted to the Minister of Revenue for Quebec by the Purchaser pursuant to section 3.3 shall be credited
to the Purchaser as a payment to the Non-Resident Vendor on account of his Pro Rata Share of the Share Purchase Price. 
 3.3.2.6    For each Vendor that is a partnership that is not a Canadian Partnership within the meaning of the ITA and in respect of which an amount must be transferred to the Withholding Agent pursuant to
section 3.3.2.1 (“Non-Resident Vendor Partnership”), section 3.3.2.1 will not apply to the extent those partners of the Non-Resident Vendor Partnership are individuals resident of Canada within the meaning of the ITA and
section 3.3.2 shall be read mutatis mutandis. 
  

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	3.4	Other Withholdings 

 In addition to any
withholdings contemplated under section 3.3, Purchaser and the Corporation shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable pursuant to this Agreement such amounts as are required to be deducted
or withheld therefrom under sections 1441, 1442 and 3406 of the Code, section 153 and Part XIII of the ITA and the Income Tax Regulations and the equivalent provisions of the QTA and of any other similar taxing legislation, and applicable employment
taxes under the Code, the Canada Pension Plan, the Quebec Pension Plan and the Employment Insurance Act and any other similar applicable provision of Law as may be in force at the Closing Date as determined by Purchasers in exercise of reasonable
judgment and good faith. To the extent amounts described in this section 3.4 are so deducted or withheld, such amounts shall be treated for all purposes under this Agreement as having been paid to the person to whom such amounts would otherwise
have been paid. 
  

	3.5	Closing Date Statement and Actual Adjustment Amount 

 3.5.1    Not later than 90 calendar days after the Closing Date, the Purchaser shall, at the sole cost of the Purchaser (which, for greater certainty and without limitation, shall not be accrued as a Current Liability on
the Closing Date Balance Sheet), acting in good faith and using all reasonable efforts, cause (i) a consolidated unaudited balance sheet of the Corporation as at the close of business on the day preceding the Closing Date to be prepared and
delivered to the Vendors’ Representative, which balance sheet shall be prepared in accordance with generally accepted accounting principles as defined in section 1.6, (the “Closing Date Balance Sheet”) and (ii) a Closing
Date adjusted working capital statement based on the Closing Date Balance Sheet in the form of the Target Working Capital Statement, which statement was prepared on a basis consistent with the indicative calculation described in Schedule 3.5.1
(such Closing Date adjusted working capital statement as finally determined referred to as the “Closing Date Statement”) (provided that for greater certainty and without limitation, the Target Working Capital Statement is based upon the
Target Balance Sheet except that the value of cash and cash equivalents is equal to $0, in determining the Closing Date Statement the full value of all 

  

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cash and cash equivalents as at the close of business on the day preceding the Closing Date will be included as a Current Asset, and provided further that
the value of any tax deductions generated by the payment of Corporation Costs or Indebtedness at the Closing will not serve to reduce the Corporation's Tax liability on the Closing Date Statement. The Purchaser acknowledges that
PriceWaterhouseCoopers, the current auditor of the Corporation, may act as the Vendors’ accountants pursuant to these provisions, including in respect of the review and evaluation of the Closing Date Balance Sheet and the Closing Date
Statement, and the settlement of any Closing Date Statement Dispute. 
 3.5.2    During the period from the date the
Closing Date Statement is delivered by the Purchaser to the Vendors’ Representative through the date such statement is finally determined, the Purchaser shall (subject to receiving the usual and customary release letters) provide the
Vendors’ Representative and the Vendors’ Representative’s accountants reasonable access to its (and, if applicable, its accountant’s) work papers in connection with the preparation or review of the Closing Date Balance Sheet and
the Closing Date Statement. Access to the Purchaser’s (and, if applicable its accountant’s) working papers will be on the basis that liability of the Purchaser and its advisors, including its auditors, is denied and so acknowledged by the
Vendors’ Representative. 
 3.5.3    If the Vendors’ Representative notifies the Purchaser that the
Vendors’ Representative agrees with the Closing Date Statement within 30 days after receipt thereof or fails to deliver notice to the Purchaser of its disagreement therewith within such 30 day period, the Closing Date Statement, and
the Closing Date Balance Sheet as it pertains to the accuracy of any amount reflected in the Closing Date Statement, be conclusive and binding on the Vendors and the Purchaser and the parties shall be deemed to have agreed thereto, in the first
case, on the date the Purchaser receives the notice and, in the second case, on such 30th day. If the Vendors’ Representative, acting in good faith, believes the Closing Date Statement, or the Closing Date Balance Sheet as it pertains to
the accuracy of any amount reflected in the Closing Date Statement, has not been prepared in accordance with the provisions of section 3.5.1, then the Vendors’ Representative shall notify the Purchaser of its disagreement with the Closing
Date Statement, or the Closing Date 

  

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Balance Sheet as it pertains to the accuracy of any amount reflected in the Closing Date Statement, within such 30 day period together with reasonable
particulars of the basis of such dispute, including the Vendors’ Representative’s position of the amounts in dispute (and the resulting Purchaser’s position of Closing Date Working Capital). In such event, the Vendors’
Representative and the Purchaser shall attempt, in good faith, to resolve their differences with respect thereto within 15 days after the Vendors’ Representatives’ notice of disagreement. 
 3.5.4    Any disagreement over the Closing Date Statement, or the Closing Date Balance Sheet as it pertains to the accuracy of any
amount reflected in the Closing Date Statement, (a “Closing Date Statement Dispute”) on the basis referred to in section 3.5.3 not resolved by the Vendors’ Representative and the Purchaser within such 15 day period shall be
submitted to an independent nationally recognized accounting firm (the “Arbitrator”), other than the Purchaser’s accountants or PriceWaterhouseCoopers (or such other accounting firm selected by the Vendors’ Representative
pursuant to section 3.5.1), to determine such dispute with respect to the Closing Date Statement, or the Closing Date Balance Sheet as it pertains to the accuracy of any amount reflected in the Closing Date Statement, and such determination
shall be final and binding on the parties and shall not be subject to any appeal or review. If the Vendors’ Representative and the Purchaser are unable to agree upon an accounting firm to serve as the arbitrator, a representative of an
accounting firm selected by the Vendors’ Representative and a representative of the Purchaser’s accountants selected by the Purchaser shall select an independent nationally recognized accounting firm (other than themselves and
PriceWaterhouseCoopers) to be such Arbitrator. The Arbitrator shall allow the Vendors’ Representative, on behalf of the Vendors, and the Purchaser to present their respective positions regarding the dispute (provided that, for greater
certainty, such presentations are limited to matters relating to the Closing Date Statement, or the Closing Date Balance Sheet as it pertains to the accuracy of any amounts reflected in the Closing Date Statement), and each of the Vendors’
Representative and the Purchaser shall have the right to present additional documents, materials and other information, and make an oral presentation to the Arbitrator, regarding such dispute and the Arbitrator shall consider such additional
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other information and such oral presentation. Any such other documents, materials or other information shall be copied to each of the Vendors’
Representative and the Purchaser and each of the Vendors’ Representative and the Purchaser shall be entitled to attend any such oral presentation. The Arbitrator shall use commercially reasonable efforts to complete its work within
30 calendar days of its engagement. The fees and disbursements of the Arbitrator shall be paid by the party whose determination of Closing Date Working Capital is furthest from the Arbitrator’s determination. 
  

	3.6	Settlement Date 

 On the 2nd Business Day
following the date on which the parties agree to the Closing Date Statement (or are deemed to have agreed to the Closing Date Statement) or on the 2nd Business Day following the date on which a determination of a Closing Date Statement Dispute
is made pursuant to section 3.5 (the “Settlement Date”), the amounts set out in section 3.5.1 shall be determined and the payments contemplated by section 3.2.6 shall be made based on the Share Purchase Price as finally
determined, subject to withholding. To the extent that there is a Deficiency, the Vendors’ Representative on behalf of the Vendors and the Purchaser shall deliver a joint direction to the Escrow Agent to release such Deficiency to the
Purchaser. 
  

	3.7	[*] 

 3.7.1    Definitions. In this section, 
 3.7.1.1    “Budget” means the total gross costs of $[*] included in the CSR dated December 14, 2006 and attached hereto as Schedule 3.7.1; 
 3.7.1.2    “Certification” means the certification of FAA NY ACO TSOs issued as set forth in Milestone 35 of the
Appendix A to Revision 2 to Appendix 1 (the Statement of Work dated September 27, 2006) of the [*] Contract; 
 3.7.1.3    “CSR” means contract status report prepared in connection with the [*] Contract; 
  

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 3.7.1.4    “Costs” means as determined at the Final Cost Date, the
non-recurring development and pre-production costs, other than Excluded Costs, incurred in connection with the [*] Contract to achieve Certification less the following amounts: 
 3.7.1.4.1    [*] received or receivable in respect of such development and production costs; 
 3.7.1.4.2    any funding for development or production costs provided by [*] (including any payments made by [*] pursuant to section
1.4 of the [*] Contract) or any third party customer directly related to the [*] Program; and 
 3.7.1.4.3    Deducted
Costs; 
 3.7.1.5    “Deducted Costs” means an amount equal to the incremental gross profit obtained
from the aggregate of (i) the product of multiplying [*] shipsets of Goods by the difference between the forecasted gross profit margin as determined on the Final Cost Date and [*]% and (ii) the gross profit attributable to an
increase on or before the Final Cost Date in the number of Goods forecasted to be delivered on or before March 31, 2010 above [*] shipsets of Goods; 
 3.7.1.6    “Excluded Costs” means: 
 3.7.1.6.1    any costs incurred after the Final Cost Date; 
 3.7.1.6.2    any costs
incurred as a result of any change or amendment to the [*] Contract, except any amendment required as a result of a failure of the Corporation to perform the terms of the [*] Contract; 
 3.7.1.6.3    any costs relating to improvements in deliverables of the Goods; 
  

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 3.7.1.6.4    any costs relating to other programs of the Corporation; and

 3.7.1.6.5    any costs related to Goods or similar products and services sold to third parties other than [*];

 3.7.1.7    “Final Cost Date” means the earlier of (i) the date that is [*] after the Closing
Date; or (ii) the date that the Certification is achieved under the [*] Contract; 
 3.7.1.8    “Goods” has the meaning attributed to such term in the [*] Contract; 
 3.7.1.9    [*]; 
 3.7.1.10    [*] means the [*] or its successors or assigns under
the [*] Contract; 
 3.7.1.11    [*] Claim Amount” means as determined at the Final Cost Date, the amount
obtained by subtracting $[*] from the Costs if such amount is greater than zero; 
 3.7.1.12    [*] Claim
Statement” has the meaning attributed to such term in section 3.7.2; 
 3.7.1.13    [*]
Contract” means the master purchase and support agreement between [*] and CMC Electronics Inc, dated October 10, 2005, as amended from time to time; and 
 3.7.1.14    [*] Program” means the Integrated Avionics Update Program for the [*] aircraft as defined in the [*] Contract; 
 3.7.2 Vendors’ [*] Cost Sharing Obligation. The Purchaser shall prepare, as at the Final Cost Date, a written statement
setting out the [*] Claim Amount, together with the most recent CSR and a detailed summary of the Costs as at the Final Cost Date including reasonable detail on Excluded Costs (or any allocation of Costs) and Deducted Costs (the 

  

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[*] Claim Statement”). The Purchaser shall deliver the [*] Claim Statement to the Vendors’ Representative within 30 days after the
Final Cost Date. 
 3.7.2.1    If the Vendors’ Representative notifies the Purchaser that the Vendors’
Representative agrees with [*] Claim Amount set forth in the [*] Claim Statement, or fails to deliver notice to the Purchaser of its disagreement therewith within 30 days of receipt of the [*] Claim Statement, the Vendors’ Representative, on
behalf of the Vendors, shall together with the Purchaser issue a joint direction to the Escrow Agent within 30 days of receipt of the [*] Claim Statement, to release to the Purchaser, from the Escrow Amount, the lesser of: (i)[*]% of the [*] Claim
Amount; (ii) the Escrow Amount at such time; and (iii) $[*]. 
 3.7.2.2    If the Vendors’
Representative, acting reasonably, disagrees with or disputes the [*] Claim Amount and/or the [*] Claim Statement, the Vendors’ Representative shall notify the Purchaser in writing of its disagreement within 30 days after receipt thereof,
together with reasonable particulars of the basis of such dispute. The Vendors’ Representative and the Purchaser shall attempt, in good faith, to resolve their differences with respect to any such disagreement or dispute within 15 days
after the Vendors’ Representatives’ notice of disagreement. To the extent that the Vendors’ Representative and the Purchaser are not able to reach agreement, the dispute may be referred by either party for determination by arbitration
in a similar manner as contemplated by section 3.5.4, except that the Arbitrator may hire appropriate technical assistance. Once the dispute is settled amongst the Vendors’ Representative and the Purchaser or determined by the Arbitrator,
the Purchaser and the Vendors’ Representative shall, if applicable, issue a joint direction consistent with the settlement or determination, as the case may be, to release to the Purchaser, from the Escrow Amount, the lesser of (i) [*]% of
the [*] Claim Amount so settled or determined; (ii) the Escrow Amount at such time; and (iii) $[*]. 
  

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 3.7.2.3    In the event no [*] Claim Statement is provided to the Vendors’
Representative by the Purchaser within 30 days after the Final Cost Date, the [*] Claim Amount shall be deemed to be equal to $[*]. 
 3.7.2.4    For greater certainty and without limitation, the Vendors’ obligation to make any payment to the Purchaser in connection with amounts owing pursuant to this section 3.7.2 shall be limited to payments
out of, and completely satisfied by payments from, the Escrow Amount held by the Escrow Agent, and other than payments made by the Escrow Agent to the Purchaser pursuant to this section 3.7.2, there will be no other obligation for the Vendors
to make any other payment in respect of the [*] Claim Amount. 
 3.7.3    Reporting
Requirements. Within 15 days at the end of each fiscal quarter, Purchaser shall cause the Corporation to deliver to the Vendors’ Representative quarterly reports which will include: 
 3.7.3.1    a development progress report; 
 3.7.3.2    an updated copy of CSR at the end of the most recent quarter for the [*] Contract; and 
 3.7.3.3    a certificate from the CFO of CMC Electronics certifying that: 
 3.7.3.3.1    that Costs have been determined in accordance with this section 3.7 and reasonable particulars of Deducted Costs and Excluded Costs (and details of any allocation of Costs); 
 3.7.3.3.2    no Costs relate to any other program; 
 3.7.3.3.3    a description of any amendment to the [*] Program that effects Costs or the ultimate price of Goods; 
 3.7.3.3.4    there has been no amendment, change or modification to accounting principles and practices; 
  

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 3.7.3.3.5    the only amendments to the [*] Contract with [*] are attached to this
certificate; and 
 3.7.3.3.6    copies of all material correspondence relating to the [*] Contract are attached to this
certificate. 
 3.7.4    Monitoring Rights. The Vendors’ Representative (or its agent) shall be allowed
to monitor on site, from time to time, the progress of the execution of the [*] Contract and the development of the Goods and be granted reasonable access to relevant books and records to determine all matters relating to Costs, Excluded Costs and
Deducted Costs. 
 3.7.5    Covenants. [*] 
 3.7.6    Negative Covenants. Neither the Purchaser, the Corporation nor CMC Electronics shall, without the consent of
the Vendors’ Representative (which shall not be unreasonably withheld), amend, change, or modify the accounting principles and practices utilized by the Corporation to calculate or record the Costs except for such changes required by applicable
Canadian law or Canadian generally accepted accounting principles; 
 3.7.7    Negative Covenants. The
Purchaser shall not without providing written notice to the Vendors’ Representative: 
 3.7.7.1    change designs
or specifications after the Closing Date; 
 3.7.7.2    change the [*] Program Director, [*] Program Managers or the [*]
Program Director of Engineering; or 
 3.7.7.3    amend the [*] Contract in any manner which materially increases Costs.

 3.7.8    Arbitration. To the extent that, from time to time, the Vendors’ Representative and the
Purchaser disagree on any aspect of Costs (either as set out in the [*] Claim Statements, the relevant CSR or otherwise), they shall attempt in good faith to resolve such dispute, failing which such dispute may be referred by either party for
determination by 

  

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arbitration in a similar manner as contemplated by section 3.5.4, except that the Arbitrator may hire technical assistance. 
  

	3.8	Escrow Procedure for Indemnification Claims 

 3.8.1    Claims on the Escrow Amount (Other than the [*] Claim Amount and Closing Date Statement). Subject to section 3.8.3, if, at any time up to and including the [*] Release Date, the Purchaser delivers to
the Vendors’ Representative (the day of receipt of such delivery by the Vendors’ Representative being the “Indemnification Delivery Date”) a Claim against the Vendors or any of them for indemnification under
Article 7 of this Agreement (which shall include the amount of such Claim as set out in section 7.3.2 (the “Claimed Amount”), then: 
 3.8.1.1    Subject to the provisions of Article 7, the Escrow Agent shall be entitled to and shall thereafter continue to hold that portion of the Escrow Amount equal to the Claimed Amount in
escrow until directed to deliver the Claimed Amount or a part thereof: 
  

	 	(i)	by a joint direction (which shall be delivered in accordance with section 3.8.1.2 herein) executed by the Vendors’ Representative and the Purchaser; or

  

	 	(ii)	by a final, non-appealable order or judgment of a court of competent jurisdiction (“Final Order”); 

 3.8.1.2    Other than in respect of disputes regarding the [*] Claim Amount which shall be governed by the provisions of
section 3.7.2, Claims for Indemnification shall be governed by the provisions of Article 7. Upon a resolution of such dispute (whether by agreement or pursuant to the provisions of Article 7), the Purchaser and the Vendors’
Representative shall deliver a joint direction to the Escrow Agent in accordance with section 3.8.1 herein. 
  

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 3.8.2    Release of Escrow Fund 
 3.8.2.1    On or within 5 Business Days after the date which is the 12 month anniversary of the Closing Date (the “12 Month
Release Date”), the Purchaser and the Vendors’ Representative shall issue a joint direction to the Escrow Agent to release to the Exchange Fund Agent, on behalf of the Vendors, the amount (the “12 Month Released
Amount”), if any, equal to $10,000,000 less the sum of (i) the amounts, if any, paid to the Purchaser pursuant to sections 3.8.1 and 3.2.6.2 on or prior to the 12 Month Release Date, and (ii) the sum of the amounts, if
any, referred to in all of the Purchaser’s Claims delivered on or before the 12 Month Release Date which remain outstanding and have not been paid pursuant to section 3.8.1 (such Claims hereinafter referred to as the “Pre 12 Month
Unresolved Claims”). If the result of the foregoing calculation results in the 12 Month Released Amount being zero or a negative number, then no amount shall be released to the Exchange Fund Agent. 
 3.8.2.2    After the 12 Month Release Date, to the extent that the Pre 12 Month Unresolved Claims are resolved (either between the
Purchaser and the Vendors’ Representative or pursuant to a Final Order) the Purchaser and the Vendors’ Representative shall deliver a joint direction to the Escrow Agent to deliver the relevant amounts to (i) the Purchaser and
(ii) the Exchange Fund Agent, on behalf of the Vendors, the additional amount that would have been payable pursuant to section 3.8.2.1 had such Claims been resolved. 
 3.8.2.3    On or within 5 Business Days after the later of (i) the date which is the [*] anniversary of the Closing Date or
(ii) the date the [*] Claim Statement is delivered to the Vendor’s Representative (the “[*] Release Date”), the Purchaser and the Vendors’ Representative shall deliver a joint direction to the Escrow Agent to release
to the Exchange Fund Agent, on behalf of the Vendors, the balance of the Escrow Amount less the aggregate of (i) the total amounts, if any, referred to in all of the Purchaser’s Claims under section 3.8.1 to the extent not resolved
and (ii) the amount of the payment in dispute, if any, under 
  

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section 3.7.2.2 in connection with the [*] Claim Amount (such Claims hereinafter referred to as the “Pre [*] Unresolved Claims”).

 3.8.2.4    After the [*] Release Date, to the extent that the Pre [*] Unresolved Claims are resolved (either between
the Purchaser and the Vendors’ Representative, by arbitration in respect of disputes on the [*] Claim Amount or pursuant to a Final Order), the Purchaser and the Vendors’ Representative shall deliver a joint direction to the Escrow Agent
to deliver the relevant amounts to (i) the Purchaser and (ii) the Exchange Fund Agent, on behalf of the Vendors, the additional amount that would have been payable pursuant to section 3.8.2.3 had such claims been resolved on the [*]
Release Date. 
 3.8.2.5    On or after the [*] Release Date, if there are no outstanding Claimed Amounts or amounts
outstanding under section 3.7.2.2 in connection with the [*] Claim Amount and there remain funds in the Escrow Amount, the Purchaser and the Vendors’ Representative shall jointly direct the Escrow Agent to release all of the remaining
Escrow Amount to the Exchange Fund Agent, on behalf of the Vendors. 
 3.8.3    Procedure for Working Capital and [*]
Claim Amounts 
 3.8.3.1    The procedures set forth (i) in sections 3.2.6, 3.5 and 3.6 shall govern the
procedure for any claim in respect of a Deficiency or a dispute in respect of the Closing Date Statement and (ii) in section 3.7 shall govern the procedure for claims in respect of the [*] Claim Amount, and such procedures shall be the
sole recourse of the Purchaser against the Vendors in respect of such claims. 
  

	3.9	Payments 

 Any reference in this Agreement or in
any document delivered pursuant to this Agreement to payment shall mean payment in Canadian dollars by wire transfer, by negotiable cheque certified by a Canadian chartered bank or Canadian trust company or by official bank draft drawn on a Canadian
chartered bank. 
  

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 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES 
  

	4.1	Representations and Warranties of the Corporation 

 The Corporation represents and warrants to and in favour of the Purchaser as follows and acknowledges that the Purchaser is relying upon such representations and warranties in connection with the matters contemplated by this Agreement:

 4.1.1    Organization. 
 4.1.1.1    Each of the Corporation and the CMC Subsidiaries has been duly incorporated under all applicable Laws, is validly subsisting and has full corporate or legal power and authority to own
and lease its properties and carry on its businesses as currently owned and carried on and each of the Corporation and the CMC Subsidiaries is duly registered, licensed or qualified to carry on business in each jurisdiction in which the nature of
the business now being carried on or the property owned or leased by it makes such registration, licensing or qualification necessary. The copies of the articles and by-laws of the Corporation and the CMC Subsidiaries which have been provided to the
Purchaser reflect all amendments made thereto at any time prior to the execution of this Agreement and are correct and complete. Except as disclosed in the CMC Disclosure Schedule, each of the Corporation and the CMC Subsidiaries is not in default
under, or in violation of, any material provision of its articles or by-laws in any respect. 
 4.1.1.2    All of the
outstanding shares of capital stock and other ownership interests of the Corporation and the CMC Subsidiaries are validly issued, fully paid and non-assessable, and except as disclosed in the CMC Disclosure Schedule, all such shares and other
ownership interests in CMC Subsidiaries are owned directly or indirectly by the Corporation, free and clear of all Charges. The Vendors have disclosed in the CMC Disclosure Schedule the names and jurisdictions of incorporation of each of its
Subsidiaries. 
  

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 4.1.1.3    The CMC Disclosure Schedule lists all direct or indirect Subsidiaries of
the Corporation. 
 4.1.1.4    Neither the Corporation nor any CMC Subsidiary has any interest in any other Person other
than CMC Subsidiaries and except as disclosed in the CMC Disclosure Schedule. 
 4.1.2    Capitalization.
The authorized capital of the Corporation consists of an unlimited number of Class A common shares and an unlimited number of Class B Convertible, Redeemable Non-Voting Shares. The CMC Disclosure Schedule sets out, as at the date hereof
the number of Shares issued and outstanding, and the number of Shares reserved, in the aggregate, for issuance in respect of the CMC Options. The authorized capital of the CMC Subsidiaries and the number of outstanding Shares of each CMC Subsidiary
is described in the CMC Disclosure Schedule. Except as described in the CMC Disclosure Schedule (all of which, as of Closing, shall be terminated or exercised without any continuing liability to the Corporation or the Purchaser), there are no
options, warrants, conversion privileges or other rights, agreements, arrangements or commitments (pre-emptive, contingent or otherwise) obligating the Corporation or any CMC Subsidiary to issue or sell any shares of the Corporation or any of the
CMC Subsidiaries or securities or obligations of any kind convertible into or exchangeable for any shares of the Corporation or any CMC Subsidiary, nor is there outstanding any stock appreciation rights, phantom equity or similar rights, agreements,
arrangements or commitments based upon the book value, income or any other attribute of the Corporation or any CMC Subsidiary. All outstanding Shares and shares of the share capital of the CMC Subsidiaries have been duly authorized and are validly
issued and outstanding as fully paid and non-assessable shares, free of pre-emptive rights. Except as disclosed in the CMC Disclosure Schedule, there are no outstanding bonds, debentures or other evidences of indebtedness of the Corporation or any
CMC Subsidiary, having the right to vote (or that are convertible for or exercisable into securities having the right to vote) with the holders of the Shares on any matter. Except as disclosed in the CMC Disclosure Schedule, there are no outstanding
contractual obligations of the Corporation or any CMC Subsidiaries to repurchase, redeem 

  

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or otherwise acquire any of its outstanding securities or with respect to the voting or disposition of any outstanding securities of any of its Subsidiaries.

 4.1.3    No Violation. The approval of this Agreement, the execution and delivery by the Vendors of this
Agreement and the performance by the Vendors and the Corporation of their obligations hereunder, and the completion of the transactions contemplated hereby, will not, except as disclosed in the CMC Disclosure Schedule: 
 4.1.3.1    conflict with, violate, result in a breach of, constitute a default under, or require any consent or approval to be
obtained under any provision of the Corporation’s or any of the CMC Subsidiaries’ certificate of incorporation, articles, by-laws or other charter documents; 
 4.1.3.2    except as may become applicable solely as a result of the specific status of the Purchaser conflict with, violate, result in a breach of, constitute a default under, require any consent
or approval to be obtained under, result in the imposition of any Charge (other than Permitted Charges) upon any of the Corporation’s assets or the assets of any CMC Subsidiary or give rise to any right of termination, or any payment
obligation, loss of a benefit or increase in any liability or fees of the Corporation or a CMC Subsidiary, under any provision of: 
  

	 	(i)	 other than the sanctions, rulings, consents, orders, exemptions, permits and other approvals (including the lapse, without objection, of a prescribed time period
under a statute, rule or regulation that states that a transaction may be implemented if a prescribed time period lapses following the giving of notice without an objection being made) of Governmental Entities, regulatory agencies or self-regulatory
organizations, relating to the Vendors, the Corporation and the CMC Subsidiaries listed in the CMC Disclosure Schedule (“Corporation’s Regulatory Approvals”), any Laws; except to the extent that the violation of, default
under or breach of, or failure to obtain any consent under any Laws, would not, 

  

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individually or in the aggregate adversely affect the Corporation or the CMC Subsidiaries in any material manner; 

  

	 	(ii)	any Material Contract (other than as disclosed in the CMC Disclosure Schedule (excluding any notification requirements). 

 4.1.4    Absence of Certain Changes or Events. Except as disclosed in the CMC Disclosure Schedule since the date of the
Audited Financial Statements, none of the following events have occurred in respect of the Corporation or any of the CMC Subsidiaries: 
 4.1.4.1    any damage or destruction to the assets or properties of the Corporation or any of the CMC Subsidiaries not covered by insurance involving $500,000 or more in replacement or repair costs on the Corporation on
a consolidated basis; 
 4.1.4.2    any redemption, repurchase or other acquisition of Shares by the Corporation (other
than as a result of the death or termination of employment of an Employee Shareholder) or any declaration, setting aside or payment of any dividend or other distribution (whether in cash, stock or property), other than inter-company dividends, with
respect to Shares; 
 4.1.4.3    any material increase in or modification of (outside the ordinary course) the
compensation (excluding the Retention Bonuses) payable or to become payable by the Corporation and any of the CMC Subsidiaries to any of its directors or officers, or any agreement to grant to any such director or officer any material increase in
severance or termination pay; 
 4.1.4.4    any creation of, material increase in or material modification of any CMC
Employee Plans or any bonus, pension, insurance or benefit arrangement (including, but not limited to, the granting of stock options, restricted stock awards or stock appreciation rights and excluding bonuses which are paid in the ordinary and
regular course of business consistent with past practice) made to, for 

  

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or with any of the directors, officers or employees of the Corporation or any of the CMC Subsidiaries; 
 4.1.4.5    any acquisition or sale of property or assets aggregating 3% or more of the Corporation’s total consolidated
property and assets as at March 31, 2006, other than in the ordinary and regular course of business consistent with past practice and other than capital expenditures and commitments; 
 4.1.4.6    (A) other than in the ordinary and regular course of business consistent with past practice, any incurrence, assumption
or guarantee by the Corporation or any of the CMC Subsidiaries of any debt for borrowed money, (B) any issuance or sale of any securities convertible into or exchangeable for debt securities of the Corporation or any of the CMC Subsidiaries or
(C) any issuance or sale of options or other rights to acquire from the Corporation or any of the CMC Subsidiaries debt securities or any securities convertible into or exchangeable for any such debt securities; 
 4.1.4.7    other than in the ordinary and regular course of business consistent with past practice, any creation or assumption by
the Corporation or any of the CMC Subsidiaries of any Charge on any asset other than Permitted Charges; 
 4.1.4.8    any entering into, amendment of, termination or non-renewal by the Corporation or any of the CMC Subsidiaries of any Material Contract other than in the ordinary course of business consistent with past
practice; 
 4.1.4.9    any labour dispute or charge of unfair labour practice (other than routine union grievances)
involving the Corporation or any of the CMC Subsidiaries; 
 4.1.4.10    any resolution to approve a split, combination
or reclassification of any of the outstanding shares of the Corporation or any of the CMC Subsidiaries; 
  

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 4.1.4.11    any change in the accounting methods, principles or practices of the
Corporation or any of the CMC Subsidiaries except as may be required by generally accepted accounting principles; 
 4.1.4.12    any filing of an amended Tax Return, settlement of any Tax claim or assessment, surrendering of any right to claim a refund of Taxes, or consent to any extension or waiver of a statute of limitation
applicable to any Tax claim or assessment if such amendment, surrender or consent would have the effect of increasing in a material manner the present or future Tax liability or decrease in a material manner any present or future Tax asset of the
Corporation or the CMC Subsidiaries; and 
 4.1.4.13    entering into an amendment of or termination of any lease, or
similar Contract involving the use of real property. 
 4.1.5    Absence of Undisclosed Liabilities. Except
as disclosed in the CMC Disclosure Schedule, the Corporation and the CMC Subsidiaries have no material obligations or liabilities of any nature (matured or unmatured, fixed or contingent) other than: 
 4.1.5.1    those set forth or adequately provided for in the Unaudited Statements; 
 4.1.5.2    those relating to the Corporation and the CMC Subsidiaries disclosed in the notes to the Audited Financial Statements;

 4.1.5.3    those incurred in the ordinary and regular course of business since September 30, 2006 and consistent
with past practice; 
 4.1.5.4    those incurred in connection with the execution of this Agreement and the consummation
of the transactions contemplated by this Agreement; and 
 4.1.5.5    any performance obligation of the Corporation or
its Subsidiaries under Contracts to which it is a party. 
 4.1.6    Material Contracts. 

 

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 4.1.6.1    Other than as disclosed in the CMC Disclosure Schedule: none of the
Corporation, the CMC Subsidiaries, nor, to the Knowledge of the Corporation, any of the other parties thereto, is in default or breach of, in any material respect (excluding any ordinary course delays in delivery), nor has the Corporation or any of
the CMC Subsidiaries received any notice of material default under, any Material Contract (excluding any ordinary course delays in delivery). 
 4.1.6.2    To the Knowledge of the Corporation, each of the written Material Contracts is legal, valid, binding and enforceable; provided that the forgoing (i) is subject to bankruptcy, insolvency and other laws
affecting the enforcement of creditors’ rights generally, to general equitable principles, to the fact that the availability of equitable remedies is in the discretion of a court of competent jurisdiction and (ii) does not apply with
respect to enforceability, in any particular circumstance, of any provision of any Material Contract that provides for the severability of illegal or unenforceable provisions or that states that amendments or waivers of or with respect to any
Material Contract that are not in writing will not be effective. 
 4.1.7    Financial Statements.

 4.1.7.1    The Audited Financial Statements and the Unaudited Statements have been prepared in accordance with
generally accepted accounting principles (subject to usual year-end adjustments in the case of the Unaudited Statements) consistently applied throughout the periods indicated and present fairly in all material respects, the financial position of the
Corporation and the Subsidiaries and the results of their operations as of the dates and throughout the periods indicated. 
 4.1.7.2    The Corporation and the CMC Subsidiaries each maintain systems of internal accounting controls sufficient to provide reasonable assurance that the transactions are recorded as necessary to permit preparation
of financial statements in conformity with generally accepted accounting principles. 
  

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 4.1.7.3    To the Knowledge of the Corporation, the Corporation is entitled to
retain all amounts received as tax credits for pre-competitive research and development or as a subsidy related to research assistance for international research and innovation initiatives or other similar subsidies, grants, tax credits, refunds and
such amount will not be subject to forfeiture or repayment solely by virtue of the completion of the purchase of the Purchased Shares pursuant to this Agreement. 
 4.1.8    Indebtedness. Except as set forth in the CMC Disclosure Schedule, as of the date hereof, neither the Corporation nor any Subsidiary has any Indebtedness except Indebtedness
set forth in the Unaudited Statements and not heretofore paid or discharged. 
 4.1.9    Litigation, Etc.
Except as set forth in the CMC Disclosure Schedule, there is no claim, action, proceeding or investigation pending or, to the Knowledge of the Corporation, threatened against or relating to this Agreement or to the Corporation or any CMC Subsidiary
or affecting any of their properties, licenses or assets before any court or Governmental Entity nor, to the Knowledge of the Corporation, is there any basis for any such claim, action, proceeding or investigation that (i) involves an amount in
controversy in excess of $250,000, (ii) if adversely determined, would prevent or materially delay consummation of the transactions contemplated by this Agreement, or (iii) if adversely determined, would prevent the Vendors or the
Corporation from fulfilling any of their obligations set out in this Agreement. 
 4.1.10    Environmental.
Except as disclosed in the CMC Disclosure Schedule, to the Knowledge of the Corporation, each of the Corporation and the CMC Subsidiaries is in compliance in all material respects with all Environmental Law. Except as disclosed in the CMC Disclosure
Schedule: 
 4.1.10.1    none of the Corporation or any CMC Subsidiary has in the 5 years prior to the Closing Date
received: (i) written notice of any proceeding, application, order or directive brought or issued pursuant to Environmental Law; or (ii) any 

  

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request for information of notice or potential responsibility that in either (i) or (ii) would reasonably be expected to require any material
expenditure; or 
 4.1.10.2    none of the Corporation or any CMC Subsidiary has in the 5 years prior to the Closing
Date received written notice of any demand or notice alleging a material breach of any Environmental Law applicable to the Corporation or such company. 
 4.1.10.3    to the Knowledge of the Corporation, except as would not reasonably be expected to require any material expenditure, the Corporation or CMC Subsidiaries have not in the 5 years prior to
the Closing Date discharged any Hazardous Substance on, into, or beneath the surface of any real property currently owned or leased by the Corporation or CMC Subsidiaries or any real property previously owned or leased by the Corporation or CMC
Subsidiaries. 
 4.1.10.4    in the 5 years prior to the Closing Date none of the Corporation or the CMC Subsidiaries
has transported or arranged for the transportation of any Hazardous Substance other than in compliance in all material respects with applicable Law. 
 The representations and warranties contained in this section 4.1.10 are the exclusive and only representations and warranties in this Agreement with respect to environmental matters. 
 4.1.11    Tax Matters. 
 4.1.11.1    Except as disclosed in the CMC Disclosure Schedule, to the Knowledge of the Corporation, each of the Corporation and the CMC Subsidiaries has timely filed, or caused to be filed, all
Tax Returns required to be filed by them and has duly, completely and correctly reported all income and all other amounts and information required to be reported thereon and all such Tax Returns continue to be true, correct and complete in all
material respects. Each of the Corporation and the CMC Subsidiaries has timely paid, caused to be paid or made adequate 

  

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provision in the Unaudited Statements for all Taxes that are due and payable with respect to the period covered by such Tax Returns. Except as disclosed in
the CMC Disclosure Schedule, (i) each of the Corporation and the CMC Subsidiaries have made adequate provision in the Unaudited Statements and (ii) has made adequate provisions in its most recently published Unaudited Statements, in each
case in accordance with generally accepted accounting principles for any Taxes that have not been paid, whether or not shown as being due on any Tax Returns. Except as disclosed in the CMC Disclosure Schedule, since such publication date, the
Corporation and the CMC Subsidiaries have only incurred Taxes in the ordinary course of business and have made adequate provisions for such Taxes. 
 4.1.11.2    Except as disclosed in the CMC Disclosure Schedule, no Tax Return is currently under audit. Neither the Corporation nor the CMC Subsidiaries has received any written inquiry or notice from any taxing
authority with respect to any material deficiency, claim or other dispute relating to the payment or assessment of any Taxes for any period which remains unsettled at the date hereof, and, to the Knowledge of the Corporation, no such inquiry or
notice is pending or threatened and no material deficiency exists in excess of reserves and accruals set forth in the Unaudited Statements or in the books and records of the Corporation or the CMC Subsidiaries, nor, to the Knowledge of the
Corporation, is there any basis for any such material deficiency. Neither the Corporation nor the CMC Subsidiaries has entered into any agreement extending the period for assessment, reassessment or collection of any Tax nor has any of them granted
any waiver of any statute of limitations with respect to, or any extension of a period for the assessment, reassessment or collection of, any Taxes. Except as disclosed in the CMC Disclosure Schedule, neither the Corporation nor any CMC Subsidiary
has received any written notification that any material issues have been raised (and are currently pending) by the Canada Revenue Agency, the United States Internal Revenue Service or any other taxing authority in any jurisdiction, including,
without limitation, any sales tax authority, in connection with any of the Tax Returns referred to above, and no waivers of statutes of 

  

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limitations have been given with respect to the Corporation or any CMC Subsidiary. Except as disclosed in the CMC Disclosure Schedule, all Tax Returns of the
Corporation and the CMC Subsidiaries (other than a U.S. Subsidiary) have been assessed through and including each of the fiscal years set forth in the CMC Disclosure Schedule. There are no Charges for Taxes (other than Permitted Charges) upon,
pending against or, to the Knowledge of the Corporation, threatened against any assets of the Corporation or the CMC Subsidiaries. 
 4.1.11.3    Except as disclosed in the CMC Disclosure Schedule, none of the Corporation or the CMC Subsidiaries has any liability for the Taxes of any other Person (other than any of the Corporation and the CMC
Subsidiaries). Each of the Corporation and the CMC Subsidiaries has withheld and remitted on a timely basis all Taxes required to be withheld and remitted by it and has charged, collected and remitted on a timely basis all material Taxes on any
sale, supply or delivery required to be charged and remitted. 
 4.1.11.4    No payment that could be received as a
result of any of the transactions contemplated by this Agreement (alone or in combination with any other event) by any person who is a “disqualified individual” (as defined in Treasury Regulation section 1.280G-1) with respect to the
Corporation or any CMC Subsidiary would be characterized as an “excess parachute payment” (as defined in Code section 280G (b)(1)). No Option or other right to acquire Shares of the Corporation issued in connection with the performance of
services (i) has an exercise price that has been or may be less than the fair market value of the underlying Shares as of the date such option or right was granted or (ii) has any feature for the deferral of compensation other than the
deferral of recognition of income until the later of exercise or disposition of such Option or right. 
 4.1.11.5    The
Corporation and the CMC Subsidiaries have made available to the Purchaser correct and complete copies of (i) all Tax Returns filed by or with respect to the Corporation or any CMC Subsidiary for which the statute of limitations has not expired,
and (ii) all examination reports and statements of 

  

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 deficiencies assessed against or agreed to by the Corporation or any CMC Subsidiary. Neither the
Corporation nor any CMC Subsidiary has requested or received a ruling from or signed a closing agreement with any Tax authority. With respect to the Corporation and each CMC Subsidiary, no claim has ever been made by a Tax authority in a
jurisdiction where the Corporation or such CMC Subsidiary, as the case may be, does not file Tax Returns that the Corporation or such CMC Subsidiary is or may be subject to taxation by such jurisdiction. 
 4.1.11.6    No U.S. Subsidiary has ever been a United States real property holding corporation (as defined in Code section
897(c)(2)). 
 4.1.11.7    Other than in respect of CMC Electronics Datacomm Inc., CMC Aurora and CMC Electronics Acton
Inc., neither the Corporation nor any CMC Subsidiary has been a member of any affiliated group under Code section 1504 (or any comparable provision of Law) that filed or was required to file a consolidated, combined or unitary Tax Return.

 4.1.11.8    Neither the Corporation nor any CMC Subsidiary is a party to or bound by any Tax indemnity agreement, Tax
sharing agreement, Tax allocation agreement or similar contract. 
 4.1.11.9    There are no accounting method changes
or proposed or threatened accounting method changes of the Corporation or any CMC Subsidiary, nor any other item, that could give rise to an adjustment under Code section 481 (or any comparable provision of Law) for periods after the Closing Date.

 4.1.11.10    Neither the Corporation nor any CMC Subsidiary has nor, to the Knowledge of the Corporation neither the
Corporation nor any CMC Subsidiary, has had a permanent establishment, as defined in any applicable Tax treaty or convention, in any country other than the country under the laws of which the Corporation or such CMC Subsidiary was formed.

  

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 4.1.11.11    Except as described in the CMC Disclosure Schedule, all transactions
between the Corporation and any CMC Subsidiary, or between one or more CMC Subsidiaries, comply with the requirements of Code section 482 (and any similar provisions of Law), and have complied with such section for all periods commencing on or after
April 1, 2002. For all transactions between any of the Corporation and the CMC Subsidiaries for all periods commencing on or after April 1, 2002 and ending on or before the Closing Date, and for any transactions with a non resident Person
with whom the Corporation or the CMC Subsidiaries was not dealing at arm’s length during a taxation year commencing on or after April 1, 2002 and ending on or before the Closing Date, each of the Corporation and the CMC Subsidiaries has
made or obtained records or documents that meet the requirements of paragraphs 247(4)(a) to (c) of the ITA, or any equivalent provision of Law (including Code section 482). 
 4.1.11.12    Except as disclosed in the CMC Disclosure Schedule, there is no limitation on the utilization by any U.S. Subsidiary of
any net operating loss, built-in loss or similar item under Code sections 382, 383, 384, or 1502 or comparable provisions of Law (other than any such limitation arising as a result of the consummation of the transactions contemplated by this
Agreement). 
 4.1.11.13    Except as disclosed in the CMC Disclosure Schedule, neither the Corporation nor any CMC
Subsidiary has participated in any “reportable transaction” within the meaning of Treasury Regulation section 1.6011-4(b). 
 4.1.11.14    None of sections 79, 80, 80.01, 80.02, 80.03 or 80.04 of the ITA, or any equivalent provisions of the taxation legislation of any province or any other jurisdiction, have applied or will apply to any of the
Corporation or the CMC Subsidiaries at any time up to and including the Closing Date. None of the Corporation and the CMC Subsidiaries has deducted any amounts in computing their respective income in a taxation year which may be included in a
subsequent year under section 78 of the ITA, or any equivalent provision of Law. 
  

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 4.1.11.15    Except as contemplated under sections 3.3 and 3.4, no Taxes are
required to be withheld from amounts payable or otherwise deliverable under this Agreement. 
 4.1.12    Non-Arm’s Length Transactions. 
 Except as disclosed in the CMC Disclosure
Schedule no current shareholder of the Corporation or current or former director, officer or employee of the Corporation or any of its Subsidiaries, or any current or former Affiliate of any of the foregoing Persons or of the Corporation or any of
its Subsidiaries is, directly or indirectly through such Person’s affiliation with any other Person, a party to any agreement or transaction with the Corporation or any of its Subsidiaries other than (i) in the case of such Person,
agreements in connection with any such Person’s duties as a director, officer or employee of the Corporation or any of its Subsidiaries and (ii) agreements that are on arm-length terms. 
 4.1.13    Labour Matters. 
 4.1.13.1    Except as disclosed in the CMC Disclosure Schedule, or except as previously provided by the Corporation to the Purchaser in respect of severance and termination payments, neither the
Corporation nor any CMC Subsidiary is a party to any material written policy, agreement or obligation, providing for severance or termination payments to, or any employment agreement with, any director, officer or employee of the Corporation or any
CMC Subsidiary. 
 4.1.13.2    Except as described in the CMC Disclosure Schedule, none of the Corporation nor any CMC
Subsidiary is a party to any collective bargaining agreement nor subject to, to the Knowledge of the Corporation, any application for certification, threatened or union-organizing campaigns for employees not covered under a collective bargaining
agreement nor are there any current, pending or, to the Knowledge of the Corporation, threatened strikes or lockouts at either the Corporation or any CMC Subsidiary. The Corporation is in compliance in all material respects with each collective
agreement to which it is a party. 
  

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 4.1.13.3    Except as described in the CMC Disclosure Schedule, to the Knowledge of
the Corporation, neither the Corporation nor any CMC Subsidiary is a party to any current material grievance, claim for wrongful dismissal, constructive dismissal or other material employment-related claim or material grievance, actual or
threatened, or any material litigation, actual or threatened, relating to employment or termination of employment of employees. 
 4.1.13.4    Except as disclosed in the CMC Disclosure Schedule, to the Knowledge of the Corporation, in the 5 year period prior to the Closing Date the Corporation and all CMC Subsidiaries have operated in compliance in
all material respects with applicable Laws with respect to employment and labour practices (including properly classifying workers as independent contractors, temporary employees, and full-time employees), employment and labour standards,
occupational health and safety, pay equity, workers’ compensation and human rights and there are no current, pending or, to the Knowledge of the Corporation, material threatened proceedings before any governmental board or tribunal with respect
to any employment or labour matters. 
 4.1.13.5    Except as disclosed in the CMC Disclosure Schedule there has not
been any resignation or other termination (excluding retirement) of or by any officer, director or key employee within the 12 months preceding the date of this Agreement. 
 4.1.14    U.S. Employee Benefit Plans. 
 4.1.14.1    The CMC Disclosure Schedule lists all CMC US Employee Plans. 
 4.1.14.2    Except as disclosed in the CMC Disclosure Schedule, all of the CMC US Employee Plans are registered where required by, and are in good standing under, all applicable Laws and, to the Knowledge of the
Corporation, except for matters that individually or in the aggregate, would not have a Material Adverse Effect on the Corporation on a consolidated basis, there are no actions, claims, 

  

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proceedings or governmental audits pending (other than routine claims for benefits) relating to the Corporation. 
 4.1.14.3    Except as disclosed in the CMC Disclosure Schedule, all of the CMC US Employee Plans have been administered in material
compliance with their terms and all applicable Laws. The CMC Disclosure Schedule discloses the funded status of the CMC US Employee Plans that are registered pension plans as at the date of the last actuarial valuation filed with governmental
authorities in respect of such plans. 
 4.1.14.4    Except as disclosed in the CMC Disclosure Schedule, and except as
required by applicable Laws or the terms of any applicable collective agreement, no amendments to any CMC US Employee Plan have been promised and no amendments to any CMC US Employee Plan will be made or promised prior to the Closing Date which
would materially increase the benefits of the employees of the Corporation or any CMC Subsidiaries. 
 4.1.14.5    True
and complete copies of all the CMC US Employee Plans as amended have been made available to the Purchaser; for the purpose of the foregoing, related documents means all current plan documentation, summary plan descriptions, all current related trust
agreements, funding agreements and similar agreements, the most recent annual reports filed with any Governmental Entity, and the most recent actuarial reports, if any, related thereto. 
 4.1.14.6    Except as set out in the CMC Disclosure Schedule, there are no agreements or undertakings by the Corporation or any CMC
Subsidiaries to provide post-retirement medical, health, life insurance or other benefits to any present or former employee of the Corporation, any CMC Subsidiaries except as required by section 4980B of the Code or Part 6 of Title I
of ERISA. 
 4.1.14.7    Except as disclosed in the CMC Disclosure Schedule, (i) each CMC US Employee Plan of a
U.S. Subsidiary that is intended to be qualified under section 401(a) of the Code has received a favourable determination letter from the 

  

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Internal Revenue Service as to such qualification; (ii) no CMC US Employee Plan of a U.S. Subsidiary is a “defined benefit plan” (within the
meaning of section 3(35) of ERISA); (iii) none of the U.S. Subsidiaries maintain, sponsor or contribute to any “multiemployer plan” (within the meaning of section 3(37) of ERISA); and (iv) no reportable event (as
described in section 4043 of ERISA) that has not been waived has occurred with respect to any plan that could reasonably by expected to result in any material liability to a U.S. Subsidiary. 
 4.1.15    Canadian Employee Benefit Plans. 
 4.1.15.1    Section 4.1.15.1 of the CMC Disclosure Schedule sets forth a complete and accurate list of all CMC Canadian Employee Plans. Except as disclosed in the CMC Disclosure Schedule,
neither the Corporation nor any CMC Subsidiary has any agreement, arrangement, commitment or obligation to create, enter into or contribute to any additional CMC Canadian Employee Plan, or to modify or amend in any material respect any existing CMC
Canadian Employee Plan. Since March 31, 2006, there has been no material amendment, formal interpretation or other public announcement (written or oral) by the Corporation, any CMC Subsidiary, or any other Person relating to, or change in
participation or coverage under, any CMC Canadian Employee Plan to materially increase benefits or expenses under such plan. Other than as disclosed in the CMC Disclosure Schedule, to the Knowledge of the Corporation, none of the rights of the
Corporation or any CMC Subsidiary under any CMC Canadian Employee Plan will be materially impaired in any way by this Agreement or the consummation of the transactions contemplated by this Agreement. 
 4.1.15.2    The Corporation has delivered or made available to Purchaser true, correct and complete copies (or, in the case of
unwritten CMC Canadian Employee Plans, descriptions) of all CMC Canadian Employee Plans along with, to the extent applicable to the particular CMC Canadian Employee Plan, copies of the following: (i) the last annual reports filed with respect
to such CMC Canadian Employee Plan; (ii) the most recent financial statements prepared for (or with 

  

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respect to) such CMC Canadian Employee Plan; (iii) the most recent employee booklet and material communications provided to employees, former employees
or retirees; (iv) the most recent summary plan description distributed with respect to such CMC Canadian Employee Plan; (v) all current contracts and agreements (and any amendments thereto) relating to such CMC Canadian Employee Plan,
including, without limitation, all trust agreements, investment management agreements, annuity contracts, insurance contracts, bonds, indemnification agreements and service provider agreements; (vi) the most recent annual actuarial valuation
prepared for such CMC Canadian Employee Plan; 
 4.1.15.3    With respect to each CMC Canadian Employee Plan, except as
disclosed in the CMC Disclosure Schedule: (i) such Canadian CMC Employee Plan was properly and legally established; (ii) such CMC Canadian Employee Plan is, and at all times in the 5 years prior to the Closing Date has been, maintained,
administered, operated and funded in all material respects in accordance with its terms and, to the Knowledge of the Corporation, in compliance in all material respects with applicable requirements of all applicable Laws; (iii) the Corporation
and each CMC Subsidiary has and at all times in the 5 years prior to the Closing Date, in all material respects, properly performed all its duties and obligations (whether arising by operation of Law, by contract or otherwise) under or with respect
to such CMC Employee Plan, including, without limitation, all reporting, disclosure and notification obligations; (iv) and at all times in the 5 years prior to the Closing Date all material returns, reports, notices, statements and other
disclosures relating to such CMC Canadian Employee Plan required to be filed with any Governmental Entity or distributed to any participant in such CMC Canadian Employee Plan have in all material respects been properly prepared and duly filed or
distributed in a timely manner; (v) to the Knowledge of the Corporation, no fact or circumstance exists that could adversely affect the Tax-exempt status of such CMC Canadian Employee Plan; (vi) to the Knowledge of the Corporation, neither
the Corporation nor any CMC Subsidiary has incurred, and there exists no condition or set of circumstances in connection with which the 

  

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Corporation, any CMC Subsidiary or Purchaser could incur, directly or indirectly, any material liability or expense (except for routine contributions and
benefit payments) under any applicable Law, or pursuant to any indemnification or similar agreement, with respect to such CMC Canadian Employee Plan; and (vii) such CMC Canadian Employee Plan does not contain any provision that would prohibit
the transactions contemplated hereby. 
 4.1.15.4    As at September 30, 2006, all material contributions, premiums
and other payments due or required to be paid to (or with respect to) each CMC Canadian Employee Plan have been timely paid, or, if not yet due, have been accrued as a liability on the Unaudited Statements. All income taxes and wage taxes that are
required by law to be withheld from benefits derived under the CMC Canadian Employee Plans have been properly withheld and remitted. 
 4.1.15.5    Except as disclosed in section 4.1.15.5 of the CMC Disclosure Schedule and except for pension and retirement savings benefits, there are no agreements or undertakings by the Corporation or any CMC
Subsidiary to provide or contribute toward the cost of, nor does any CMC Canadian Employee Plan provide, post retirement or post-termination medical, health, life insurance or other benefits to any present or former employee, officer, director,
agent or independent contractor of the Corporation, or any CMC Subsidiary. 
 4.1.15.6    At all times in the 5 years
prior to the Closing Date, none of the Corporation or any CMC Subsidiary sponsors, maintains, contributes to or participates in, or has ever sponsored, maintained, contributed to or participated in (or been obligated to sponsor, maintain, contribute
to or participate in) any multiemployer plan and does not have any liability under any multiemployer plan. 
 4.1.15.7    There are no material actions, suits or claims (other than routine claims for benefits) pending or, to the Knowledge of the Corporation, threatened with respect to (or against the assets of) any CMC Canadian
Employee Plan, nor, to the Knowledge of the Corporation, is there a basis for any such action, suit or claim. 

  

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To the Knowledge of the Corporation, no CMC Canadian Employee Plan is currently under investigation, audit or review, directly or indirectly, by any
Governmental Entity, and to the Knowledge of the Corporation, no such action is contemplated or under consideration by any Governmental Entity. 
 4.1.15.8    Except as disclosed in the CMC Disclosure Schedules, neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated in or by this Agreement will: (i) otherwise
materially increase the amount of compensation due to any individual or forgive indebtedness owed by any individual, (ii) result in any material benefit or right becoming established or increased, or accelerate the time of payment or vesting of
any benefit, under any CMC Canadian Employee Plan, or (iii) require the Corporation, any CMC Subsidiary or Purchaser to transfer or set aside any assets to fund or otherwise provide for any benefits for any individual. 
 The representations and warranties contained in sections 4.1.13, 4.1.14 and 4.1.15 are the exclusive and only representations and warranties in this
Agreement with respect to CMC Canadian Employee Plans. 
 4.1.16    Title to Owned Real and Immoveable
Property. The CMC Disclosure Schedule contains a complete legal and municipal description of all of the real and immoveable property owned by the Corporation and each of the CMC Subsidiaries. Other than as disclosed in the CMC Disclosure
Schedule, the Corporation or a CMC Subsidiary is the absolute beneficial owner of, and has good and marketable title (and to the extent this representation relates to real property situated outside of the Province of Quebec, good and marketable
title in fee simple) to, such real and immoveable property, free of all Charges, except for Permitted Charges. Correct and complete copies of the Charges listed in the CMC Disclosure Schedule have been provided to the Purchaser. 
 4.1.17    Title to Assets. Except as set forth in the CMC Disclosure Schedule and except for assets licensed to or
leased by the Corporation or its Material Subsidiaries, the Corporation and its Material Subsidiaries are the absolute beneficial owners of, and have 

  

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good and marketable title, free and clear of all Charges excluding Permitted Charges, to all the material assets (other than the real property referred to in
section 4.1.16) currently used to carry on the Business. 
 4.1.18    Compliance with Law. Except as
disclosed in the CMC Disclosure Schedule, to the Knowledge of the Corporation, the Corporation and its Material Subsidiaries are in compliance in all material respects with and are not in material violation of any applicable Laws, provided that this
representation does not speak to the subject matter contemplated by section 4.1.10 {Environmental}, 4.1.13 {Labour Matters}, 4.1.14 {U.S. Employee Benefit Plans} and 4.1.15 {Canadian Employee Benefit Plans}. 
 4.1.19    Restrictions on Business Activities. Except as disclosed in the CMC Disclosure Schedule, to the Knowledge of
the Corporation, there is no agreement, judgment, injunction, order or decree binding upon the Corporation or any CMC Subsidiary, that has or could reasonably be expected to have the effect of prohibiting, materially restricting or materially
impairing any business practice of the Corporation or any CMC Subsidiary, in the ordinary course of business or the conduct of business by the Corporation or any CMC Subsidiary, as currently conducted. 
 4.1.20    Intellectual Property Rights. 
 4.1.20.1    Set forth in the CMC Disclosure Schedule, is a list of all applications and registrations for CMC Intellectual Property
Rights. 
 4.1.20.2    No applications or registrations listed in the CMC Disclosure Schedule are abandoned or expired.

 4.1.20.3    Except as set forth in the CMC Disclosure Schedule, to the Knowledge of the Corporation, the conduct of
the Business by the Corporation or the CMC Subsidiaries, as the case may be, does not infringe on the material Intellectual Property Rights of any Person. 
  

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 4.1.20.4    To the Knowledge of the Corporation, no Person is infringing upon CMC
Intellectual Property Rights. 
 4.1.20.5    Except as disclosed in the CMC Disclosure Schedule, no claim, action or
proceeding, or to the Knowledge of the Corporation, any material threat of a claim, action or proceeding is currently outstanding against the Corporation or the CMC Subsidiaries regarding CMC Intellectual Property Rights. 
 4.1.20.6    Except as set forth in the CMC Disclosure Schedule and except for licenses granted by the Corporation in the event of
its default under a Contract, its bankruptcy, insolvency or similar circumstances, in the 5 years prior to the Closing Date none of the Corporation or the CMC Subsidiaries has granted to any third party any written license in or to CMC Intellectual
Property Rights. 
 4.1.20.7    Except as set forth in the CMC Disclosure Schedule and except for commercial “off
the shelf” software, to the Knowledge of the Corporation, no material Intellectual Property Rights are used or otherwise exploited by the Corporation or the CMC Subsidiaries in connection with the Business of the Corporation or the CMC
Subsidiaries other than (i) CMC Intellectual Property Rights, or (ii) Intellectual Property Rights licensed to the Corporation or the CMC Subsidiaries. 
 The representations and warranties contained in this section 4.1.20 are the exclusive and only representations and warranties in this Agreement with respect to Intellectual Property Rights. 
 4.1.21    Customers and Suppliers. Except as disclosed in the CMC Disclosure Schedule, since January 31, 2006,
there has been no termination, cancellation or written notice of impending termination or cancellation of the business relationship with (i) any customer or distributor of the Corporation or the CMC Subsidiaries that represented at least
$2,000,000 of revenue to the Corporation on a consolidated basis in the 12 month period ended March 31, 2006 or (ii) any supplier to the Corporation or the CMC Subsidiaries who sells goods and services in excess of $2,000,000 during the
fiscal year 

  

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ended March 31, 2006. To the Knowledge of the Corporation, there is no oral notice of impending termination of a Contract with such customers,
distributors or suppliers. 
 4.1.22    Compliance with Customs and International Trade Laws. Except as set
forth on CMC Disclosure Schedule: 
 4.1.22.1    to the Knowledge of the Corporation, each of the Corporation and CMC
Subsidiaries is in compliance in all material respects with all applicable U.S. and Canada customs, import, export and other U.S. and Canada international trade laws. To the Knowledge of the Corporation, at no time over the 5 years prior to the
Closing Date has either the Corporation or any of the CMC Subsidiaries committed any material violation of such laws. 
 4.1.22.2    To the Knowledge of the Corporation, the Corporation and each of the CMC Subsidiaries is not, with respect to U.S. and Canada customs and international trade laws, subject to any material litigation, civil or
criminal investigation, audit, compliance assessment, focused assessment, penalty proceeding or assessment, liquidated damages proceeding or claim, forfeiture or forfeiture action, assessment of additional duty for failure to properly mark imported
merchandise, notice to properly mark merchandise or return merchandise to customs custody, claim for additional customs duties or fees (other than routine adjustments of deposit amounts, made between the time of entry and final liquidation), denial
order, suspension of export privileges, government sanction, or any other action, proceeding or claim by a Governmental Entity (domestic or foreign) involving or otherwise relating to any alleged or actual violation of U.S. and Canada customs and
international trade laws or relating to any alleged or actual underpayment of customs, duties, fees, taxes or other amounts owed pursuant to such customs and international trade laws and the Corporation. 
 4.1.22.3    To the Knowledge of the Corporation, the Corporation and each of the CMC Subsidiaries has not, in the 5 years prior to
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U.S. and Canada customs and international trade laws, made or provided any material false statement or material omission to any government agency (domestic
or foreign) or to any purchaser of products, in connection with the importation of merchandise, the value or classification of imported merchandise, the duty treatment of imported merchandise, the eligibility of imported merchandise for favorable
duty rates or other special treatment, country-of-origin marking, NAFTA certificates of origin, marking and labeling requirements, other statements or certificates concerning origin, quota or visa rights, export licenses or other export
authorizations, Canadian or U.S.-content requirements, licenses or other material approvals required by a foreign government or agency. 
 4.1.23    Product Matters. 
 4.1.23.1    Except as set forth on the CMC
Disclosure Schedule, in the 5 years prior to the Closing Date, no Governmental Entity has mandated or recommended a product recall or issued an air worthiness directive for any of the Corporation’s or CMC Subsidiaries’ products nor has the
Corporation or the CMC Subsidiaries voluntarily engaged in a product recall because of design or manufacturing defects in its products. 
 4.1.23.2    Each of the sites in Montreal, Quebec, Kanata, Ontario, and Sugar Grove, Illinois operated by the Corporation or the CMC Subsidiaries has received AS9100 certification. 
 4.1.24    Insurance. All material policies of insurance with respect to any of the Corporation’s or the CMC
Subsidiaries’ property, assets and Business are in full force and effect as of the date hereof. Neither the Corporation nor any of the CMC Subsidiaries has in the 5 years prior to the Closing Date received any refusal of coverage under an
existing insurance policy or any notice that a defense will be afforded with reservation of rights or any notice of cancellation. All insurance policies to which the Corporation or the CMC Subsidiaries is a party, are sufficient for compliance with
all Contracts to which any of the Corporation and the CMC Subsidiaries is a party. The insurance policies to which the 

  

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Corporation or the CMC Subsidiaries is a party have been complied with in all material respects by the Corporation and the CMC Subsidiaries, as the case may
be. The Corporation has delivered a true and complete claims history describing all claims as submitted during the prior twelve months under all insurance policies and other similar arrangements covering the Corporation or the CMC Subsidiaries or
their respective businesses or assets. 
 4.1.25    Broker Fees. None of the Vendors, the Corporation or
any CMC Subsidiary has any liability or obligation to pay any fees, commissions or other expenses to any broker, finder, investment banker or agent with respect to the transactions contemplated by this Agreement for which the Corporation, any of the
CMC Subsidiaries or the Purchaser could be liable or obligated, other than as set forth on the CMC Disclosure Schedule. 
 4.1.26    Government Licenses and Permits. To the Knowledge of the Corporation, the Corporation and the CMC Subsidiaries (a) have obtained and hold all permits, licenses, franchises, certificates,
approvals and other authorizations or other similar rights from a Governmental Entity necessary or advisable in carrying on the Business (collectively, the “Licenses”); (b) all such Licenses owned or possessed by the Corporation or
the CMC Subsidiaries are listed on the CMC Disclosure Schedule; (c) in the 5 years prior to the Closing Date, none of the Corporation or any CMC Subsidiaries has received written notice that it fails to hold any Licenses required by any
Governmental Entity for the occupancy and operation of its facilities or the conduct of the Business as presently conducted and; (d) all of the Licenses are fully paid for and all conditions applicable to such Licenses have been satisfied in
all material respects and the Corporation, or the CMC Subsidiaries have made, or will make all applications for renewals of any such Licenses which will expire before the Closing. Except as indicated on the CMC Disclosure Schedules, the Corporation
and the CMC Subsidiaries currently comply in all material respects with the terms and conditions of such Licenses. 
 4.1.27    Absence of Questionable Payments. To the Knowledge of the Corporation, in the 5 years prior to the Closing Date: (a) neither the Corporation nor any CMC Subsidiary, director or officer or to
the Knowledge of the Corporation, employee, agent or other Person 

  

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acting on behalf of the Corporation or any of the CMC Subsidiaries, has used any Corporation or CMC Subsidiary funds for unlawful contributions, payments,
gifts, entertainment or made unlawful expenditures relating to political activity to domestic or foreign government officials or others; (b) neither the Corporation nor any of the CMC Subsidiaries, nor any current or former director, officer,
employee, agent or other Person acting on behalf of the Corporation or any CMC Subsidiary or any current Vendor has accepted or received any unlawful contributions, payments, gifts, entertainment or expenditures; (c) the Corporation and the CMC
Subsidiaries have at all times complied in all material respects with and are in compliance in all material respects with all applicable provisions of the Foreign Corrupt Practices Act and applicable laws relating to prevention of corrupt
practices in similar matters under the Criminal Code of Canada. 
 4.1.28    Government Contractor
Status. In the 5 years prior to the Closing Date, none of the Corporation nor any CMC Subsidiary has been suspended or debarred from bidding on contracts or subcontracts for any agency of the Canadian government, the United States government
or any foreign government, nor to the Knowledge of the Corporation has such suspension or debarment been threatened or actions for suspension or debarment commenced. Except as disclosed in the CMC Disclosure Schedule, none of the Corporation nor any
CMC Subsidiary has, in the 5 years prior to the Closing Date, been or is currently being audited, except in the ordinary course of business or as it is customary in the industry or as provided by the Federal Acquisition Regulations or, to the
Knowledge of the Corporation investigated by the United States Government Accounting Office, the United States Department of Justice, the United States Department of Defense or any of its agencies, the Defense Contract Audit Agency or the Inspector
General or other similar authorities of any agency of the United States government (the “U.S. Agencies”), any comparable agencies maintained by the Canadian government or any foreign government, nor to the Knowledge of the Corporation has
such audit or investigation been threatened. To the Knowledge of the Corporation, there is no action on the part of the Corporation or the CMC Subsidiaries, in the 5 years prior to the Closing Date, that would form a valid basis for any of the
Corporation’s or CMC Subsidiaries’ suspension or debarment from bidding on contracts or subcontracts for any U.S. Agency or similar Canadian or foreign 

  

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government agency. None of the Corporation or the CMC Subsidiaries, in the 5 years prior to the Closing Date, have had a contract or subcontract terminated
for default by the Corporation or CMC Subsidiary and none of them have been determined to be non-responsible by any agency of the United States government, Canadian government or any foreign government. 
 4.1.29    Private Issuer. The Corporation and each of the CMC Subsidiaries are “private issuers” under
applicable Canadian securities Laws. 
 4.1.30    Privacy. The Corporation and each of CMC Subsidiaries has
collected, used and disclosed Personal Information in compliance in all material respects with all privacy policies, codes and guidelines established by it and all other privacy statements made available by it to its customers, employees or other
individuals or to the public from time to time. 
 4.1.31    Competition. The Corporation and its
affiliates (as defined in the Competition Act) do not have assets in Canada that exceed $210,000,000, or gross revenues from sales in, from or into Canada, that exceed $205,000,000, all as determined in accordance with Part IX of the
Competition Act and the Notifiable Transactions Regulations thereunder. 
  

	4.2	Representations and Warranties of the Vendors 

 Each of the Vendors severally represents and warrants as to itself only to and in favour of the Purchaser as follows and acknowledges that the Purchaser is relying upon such representations and warranties in connection with the matters
contemplated by this Agreement: 
 4.2.1    Capitalization. Such Vendor is or will at the Closing be the
holder of record and beneficially owns the aggregate number of Shares set opposite such Vendor’s name as set out in the CMC Disclosure Schedule and has good and valid title to such Shares, and such Shares shall be as of the Closing free and
clear of all Charges. Except as described in the CMC Disclosure Schedule, there are no options, warrants, conversion privileges or other rights, agreements, arrangements or commitments (pre-emptive, contingent or otherwise) obligating such Vendor to
sell any of the Purchased Shares owned by such Vendor. 
  

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 4.2.2    Authority. 
 4.2.2.1    Such Vendor has the requisite power and authority to enter into this Agreement and to perform its obligations hereunder.
The execution and delivery and the consummation by such Vendor of the transactions contemplated by this Agreement have been duly authorized by such Vendor. 
 4.2.2.2    This Agreement constitutes a legal, valid and binding obligation of such Vendor, enforceable against such Vendor in accordance with its terms, subject to bankruptcy, insolvency and other
similar Laws affecting creditors’ rights generally, and to general principles of equity. 
 4.2.3    Residency
of Vendors. 
 4.2.3.1    Each of Onex, Jean-Pierre Mortreux, Jean-Denis Roy, Gregory A. Yeldon, Mark
MacTavish, The Bank of Nova Scotia, Caisse de dépôt et placement du Québec and each of the Employee Shareholders listed on Schedule 4.2.3 (as such schedule may be updated from time to time prior to the Closing) represents,
in each case on behalf of themselves, that it is not a non-resident of Canada under the ITA. Each of ONCAP and MG Stratum Fund II, Limited Partnership represents that it is a “Canadian partnership” under the ITA. 
 4.2.3.2    ONCAP Cayman represents that its partners that are non-residents of Canada under the ITA holds not more than 75.15% of
ONCAP Cayman. 
  

	4.3	Matters Relating to the Representations and Warranties by the Corporation and the Vendors 

 4.3.1    Schedules. The purpose of the CMC Disclosure Schedule and the Schedules to this Agreement is to disclose
matters which may be relevant to the representations and warranties of the Corporation set forth in Article 4.1. 
 4.3.2    Standard of Disclosure. References to specific dollar amounts in section 4.1 are for convenience of disclosure only and do not establish or imply a standard of materiality, 

  

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a standard for what is or is not in the ordinary course of business, or any other standard for disclosure set forth in this Agreement. No implication shall
be drawn that any condition, set of facts or other disclosure set forth in the Schedules (including for greater certainty and without limitation the CMC Disclosure Schedules) is necessarily material, would constitute a Material Adverse Effect or is
otherwise required to be disclosed or that the inclusion of such disclosure establishes or implies that such matter is a Material Adverse Effect or establishes or implies a standard of materiality, a standard for what is or is not in the ordinary
course of business, or any other standard for disclosure set forth in this Agreement. Disclosure of any condition, set of facts or other disclosure set forth in any Schedule (including for greater certainty and without limitation the CMC Disclosure
Schedules) shall not affect the disclosure obligations hereunder. Disclosure in one paragraph of any Schedule (including for greater certainty and without limitation the CMC Disclosure Schedules) constitutes disclosure for other sections of this
Agreement provided that the application to such other section is apparent from the substance of the disclosure. 
 4.3.3    Limitation on Warranties. Except as expressly set forth in section 4.1, the Corporation makes no express or implied warranty of any kind whatsoever, including, without limitation, any
representation as to physical condition or fitness for a particular purpose or value of any of the assets of the Corporation or any CMC Subsidiaries or the future profitability or future earnings performance of the Business or the Corporation or any
Subsidiaries. ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY EXCLUDED. 
 4.3.4    Disclaimer of Projections. 
 4.3.4.1    The Purchaser hereby
acknowledges and agrees that (i) the Corporation does not make any representations or warranties to the Purchaser except as specifically made in section 4.1 of the Agreement and (ii) the Vendors do not make any representations or
warranties except as specifically made in section 4.2. In particular, the Corporation and the Vendors do not make any representations or warranties to the Purchaser with respect to any financial projections or forecasts relating to the Business
or the operations of the Business after the Closing. 
  

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 4.3.4.2    For greater certainty, and without limitation, the Purchaser hereby
agrees that the Corporation, the Vendors, each of their employees, directors, officers, the Vendors’ Shareholders, affiliates and general and limited partners, will not be subject to any liability or indemnification obligation to Purchaser or
to any other Person resulting from the distribution to or use by the Purchaser or its Representatives of any information relating to the Vendors, Corporation and its Subsidiaries, including the Confidential Information Memorandum and any
information, documents or material made available to Purchaser, its representatives, whether orally or in writing, in the data room, management presentations, management discussions, responses to questions submitted on behalf of Purchaser or in any
other form in expectation of the transactions contemplated by this Agreement. 
 4.3.4.3    With respect to any such
projections, or forecasts, the Purchaser acknowledges that (i) there are uncertainties inherent in attempting to make such projections and forecasts, (ii) it is familiar with such uncertainties, (iii) it is taking full responsibility
for making its own evaluation of the adequacy and accuracy of all such projections and forecasts so furnished to it, (iv) planned efficiencies or business opportunities may not materialize for a number of reasons, and (v) the Purchaser
shall have no claim against the Vendors or any of their directors, officers, employees, agents, shareholders, partners or affiliates with respect thereto. 
  

	4.4	Representations and Warranties of the Purchaser 

 The Purchaser represents and warrants to and in favour of the Vendors as follows and acknowledges that the Vendors are relying upon such representations and warranties in connection with the matters contemplated by this Agreement:

 4.4.1    Organization. The Purchaser is duly incorporated and existing under the laws of Delaware. The
Purchaser has full power and authority to own its properties and conduct its businesses as currently owned and conducted. 
  

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 4.4.2    Authority and No Violation. 
 4.4.2.1    The Purchaser has the requisite power and authority to enter into this Agreement and to perform its obligations
hereunder. The execution and delivery of this Agreement by the Purchaser and the consummation by the Purchaser of the transactions contemplated by this Agreement have been duly authorized by its board of directors and, if necessary, its shareholders
and no other proceedings on its part are necessary to authorize this Agreement or the transactions contemplated hereby. 
 4.4.2.2    This Agreement has been duly executed and delivered by the Purchaser and constitutes a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to bankruptcy,
insolvency and other similar Laws affecting creditors’ rights generally, and to general principles of equity. 
 4.4.2.3    The approval of this Agreement, the execution and delivery by the Purchaser of this Agreement and the performance by the Purchaser of its obligations hereunder, and the completion of the transactions
contemplated hereby, will not: 
 4.4.2.3.1    conflict with, violate, result in a breach of, constitute a default
under, require any consent or approval to be obtained under any provision of the Purchaser’s certificate of incorporation, articles, by-laws or other charter documents; 
 4.4.2.3.2    conflict with, violate, result in a material breach of, constitute a material default under, require any material
consent or approval to be obtained under, result in the imposition of any Charge (other than Permitted Charges) upon any of the Purchaser’s material assets or give rise to any right of termination, or any material payment obligation, loss of a
material benefit or material increase in any liability or fees of Purchaser, under any provision of: 
  

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	 	(i)	other than the sanctions, rulings, consents, orders, exemptions, permits and other approvals (including the lapse, without objection, of a prescribed time period under a statute,
rule or regulation that states that a transaction may be implemented if a prescribed time period lapses following the giving of notice without an objection being made) of Governmental Entities, regulatory agencies or self-regulatory organizations,
relating to the Purchaser listed in the Schedule 4.4.2.3 (“Purchaser’s Regulatory Approvals”), any Laws; except to the extent that the violation of, default under or breach of, or failure to obtain any consent under any Laws,
would not, individually or in the aggregate adversely affect the Purchaser in a material manner; or 

  

	 	(ii)	any material contract, license, or permit to which the Purchaser is party or by which it is bound or affected. 

 4.4.3    Litigation. Except as set forth in the Schedule 4.4.3, there is no claim, action, proceeding or
investigation pending or, to the Knowledge of the Purchaser, threatened against or relating to this Agreement or to the Purchaser or affecting any of the Purchaser’s properties, licenses or assets before any court or Governmental Entity nor, to
the knowledge of the Purchaser, is there any basis for any such claim, action, proceeding or investigation that (i) involves an amount in controversy in excess of $250,000, (ii) if adversely determined, would prevent or materially delay
consummation of the transactions contemplated by this Agreement, and (iii) if adversely determined, would prevent the Purchaser from fulfilling any of their obligations set out in this Agreement. 
 4.4.4    Financing. The Purchaser either has, or prior to the Time of Closing will have, sufficient immediately
available funds to pay, in cash, the Share Purchase Price and all other amounts payable pursuant to this Agreement or otherwise necessary to consummate all the transactions contemplated hereby. Upon the consummation of such transactions, (a)

  

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neither the Purchaser, the Corporation nor the Subsidiaries will be insolvent, (b) neither the Purchaser, the Corporation nor, the Subsidiaries will be
left with unreasonably small capital, (c) neither the Purchaser, the Corporation nor, the Subsidiaries will have incurred debts beyond its ability to pay such debts as they mature, and (d) the capital of neither the Purchaser, the
Corporation nor, the Subsidiaries will be impaired. 
 4.4.5    Purchase for Investment. The Purchased
Shares will be acquired by the Purchaser for its own account for the purpose of investment and not for the purpose of a distribution. The Purchaser will refrain from transferring or otherwise disposing of any of the Purchased Shares acquired by it,
or any interest therein, in such manner as to violate any rules or regulations of any applicable Canadian provincial or U.S. federal or state securities law regulating the disposition thereof. 
 4.4.6    No Finder’s Fees. Purchaser represents and warrants to the Vendors that it has not taken, and agrees that
it will not take, any action that would cause Vendors to become liable to any claim or demand for a brokerage commission, finder’s fee or other similar payment. 
 4.4.7    Competition. The Purchaser and its affiliates (as defined in the Competition Act) do not have assets in Canada that exceed $10,000,000, or gross revenues from sales in, from
or into Canada, that exceed $40,000,000, all as determined in accordance with Part IX of the Competition Act and the Notifiable Transactions Regulations thereunder. 
  

	4.5	Survival of Covenants, Representations and Warranties 

 4.5.1    The representations and warranties contained in this Agreement shall survive the Closing and shall terminate on the earlier of the termination of this Agreement in accordance with its terms and such date which
is eighteen months after the Closing Date and the covenants and agreements contained in this Agreement which are required to be performed prior to the Closing (the “Pre-Closing Covenants”) shall terminate on Closing, provided that:

  

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 4.5.1.1    the representations and warranties set out in section 4.1.11 {TAX
MATTERS} will survive the Closing for a period ending sixty days after the expiration of the applicable statute of limitations for the claim asserted under such section; 
 4.5.1.2    the representations and warranties set out in sections 4.1.1.1 {ORGANIZATION}, 4.1.1.2 {ISSUANCE}, 4.1.2 {CAPITALIZATION}, 4.2.1 {CAPITALIZATION}, 4.2.2 {AUTHORITY}, 4.4.1
{ORGANIZATION}, 4.4.2.1 {AUTHORITY} and 4.4.2.2 {AUTHORITY} (collectively, the “Ownership of Share Representations”) and 4.4.6 {NO FINDER’S FEE} shall terminate at the expiration of 5 years following the Closing; 
 4.5.1.3    the representations and warranties set out in section 4.1.10 {ENVIRONMENTAL} shall terminate at the expiration of 4
years following Closing; 
 4.5.1.4    the representations and warranties set out in section 4.1.6.2 {MATERIAL
CONTRACTS} shall terminate on December 31, 2007; 
 4.5.1.5    the covenants and agreements set out in sections:
(i) 6.1 {VENDORS' REPRESENTATIVE TO REPRESENT VENDORS}, 6.1.2 {INSURANCE AND INDEMNIFICATION}, 10.2 {PUBLIC NOTICE} and Article 10 {GENERAL MATTERS} shall survive indefinitely, (ii) 6.10 {ACCESS OF THE VENDORS TO RECORDS} shall
terminate at the expiration of 7 years from the Closing Date, and (iii) 6.12 {INSURANCE AND INDEMNIFICATION}, 6.15 {TAX MATTERS} and Article 3 {SHARE PURCHASE PRICE AND RELATED MATTERS} shall terminate at such time the respective
obligations under the applicable section or articles have been completed. 
  

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 ARTICLE 5 
 CONDITIONS 
  

	5.1	Conditions for the Benefit of the Purchaser to be satisfied by the Closing Date 

 The obligation of the Purchaser to complete the purchase of the Purchased Shares pursuant to this Agreement is subject to the satisfaction of, or compliance with, at or prior to the Time of Closing on the Closing
Date, each of the following conditions (each of which is acknowledged to be for the exclusive benefit of the Purchaser): 
 5.1.1    Accuracy of Representations of the Vendors and Compliance with Covenants. The representations and warranties of the Corporation in section 4.1 and each of the Vendors in section 4.2 which
are qualified by “Material Adverse Effect”, “material”, “in all material respect” and words or phrases of similar import, shall be true and correct, and all other representations and warranties shall be true and correct
in all material respects, in all cases as at the Time of Closing with the same effect as if made at and as of the Time of Closing (except (i) as such representations and warranties refer to a specific date, in which case such representations or
warranties shall be true and correct in all material respects, as applicable, as of such date; or (ii) as such representations and warranties may be affected by the occurrence of events or transactions expressly contemplated and permitted by
this Agreement); the covenants contained in this Agreement to be performed by the Corporation or the Vendors at or prior to the Time of Closing shall have been performed in all material respects; and the Corporation or the Vendors shall not be in
material breach of any agreement on their part contained in this Agreement. 
 5.1.2    No Action to
Restrain. No action or proceeding shall be pending or threatened by any Governmental Entity to restrain or prohibit: 
 5.1.2.1    the purchase and sale of the Purchased Shares; 
 5.1.2.2    the Corporation or
any Material Subsidiary from carrying on the Business. 
  

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 5.1.3    HSR & German Approvals. All requisite HSR Act and
German competition filing waiting periods related to the purchase by the Purchaser of the Purchased Shares shall have expired. 
 5.1.4    Options. All Options have been either (a) terminated, and, where terminated, the Corporation has been released from any obligations in respect of such Options or (b) exercised.

 5.1.5    Material Adverse Effect. After the date of this Agreement until the Closing Date there shall
not have been any Material Adverse Effect. 
 5.1.6    Escrow Agreement. The Vendors’ Representative,
on behalf of the Vendors, shall have executed the Escrow Agreement. 
 5.1.7    Third Party Consents. The
consent of the third party relating to item 3 set forth on Schedule 6.9 shall have been duly obtained on terms reasonably satisfactory to Purchaser. 
 5.1.8    Legal Opinion. Purchaser shall have received a legal opinion dated as of Closing in the form attached hereto as Schedule 5.1.8. 
 If any of the foregoing conditions in this Article have not been fulfilled by Closing, the Purchaser may terminate this Agreement by notice in writing to
the Vendors’ Representative, on behalf of the Vendors, in which event the Purchaser is released from all obligations under this Agreement other than the Continuing Obligations, and unless the Purchaser can show that the condition relied upon
could reasonably have been performed by the Corporation or the Vendors, as the case may be, had the Corporation or the Vendors, as the case may be, used commercially reasonable effort, the Corporation and the Vendors are also released from all
obligations under this Agreement other than the Continuing Obligations; provided that, in respect of the conditions specified in section 5.1.1, unless the breach results in a Material Adverse Effect on the Corporation, or its ability to
consummate the transaction contemplated hereby on a consolidated basis, the Purchaser (provided all the other conditions to Closing have been satisfied or waived) will be required to complete the purchase of the Purchased Shares under this Agreement

  

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notwithstanding the breach. The Purchaser may waive compliance with any condition in whole or in part if it sees fit to do so, without prejudice to its
rights of termination in the event of non-fulfillment of any other condition, in whole or in part; however, if Closing occurs, the Purchaser shall be deemed to have waived all conditions not otherwise satisfied. 
  

	5.2	Conditions for the Benefit of the Vendors to be Satisfied by the Closing Date 

 The obligation of the Vendors to complete the sale of the Purchased Shares hereunder is subject to the satisfaction of, or compliance with, at or before the Time of Closing on the Closing Date, each of the following
conditions (each of which is acknowledged to be for the exclusive benefit of the Vendors): 
 5.2.1    Accuracy of
Representations of Purchaser and Compliance with Covenants. The representations and warranties of the Purchaser made in or pursuant to this Agreement which are qualified by “Material Adverse Effect”, “material”, “in
all material respect” and words or phrases of similar import, shall be true and correct, and all other representations and warranties shall be true and correct in all material respects, in all cases as at the Time of Closing with the same
effect as if made at and as of the Time of Closing (except (i) as such representations and warranties refer to a specific date, in which case such representations or warranties shall be true and correct in all material respects, as applicable,
as of such date; or (ii) as such representations and warranties may be affected by the occurrence of events or transactions expressly contemplated and permitted by this Agreement); the covenants contained in this Agreement to be performed by
the Purchaser at or prior to the Time of Closing shall have been performed in all material respects; and the Purchaser shall not be in material breach of any agreement on its part contained in this Agreement. 
 5.2.2    No Action to Restrain. No action or proceeding shall be pending or threatened by any Governmental Entity to
restrain or prohibit: 
 5.2.2.1    the purchase and sale of the Purchased Shares; 
  

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 5.2.2.2    the Corporation and its Material Subsidiaries from carrying on the
Business as it is being carried on at the date hereof. 
 5.2.3    HSR Act and German Approval. All
requisite HSR Act and German competition filing waiting periods related to the purchase by the Purchaser of the Purchased Shares shall have expired. 
 5.2.4    Releases. Each of the directors, officers and shareholders of the Corporation shall have received a release by the Corporation and any relevant Subsidiaries for all claims
the Corporation or such Subsidiaries may have against such individual in form and substance satisfactory to Vendors’ Counsel. 
 5.2.5    Obligations to TPC. ONCAP’s obligations to Technology Partnerships Canada are released and discharged. 
 5.2.6    Options. All Options have been either (a) terminated in full, and, where terminated, the Corporation has been released from any obligations in respect of such Options or
(b) exercised in full. 
 5.2.7    Letters of Credit. Each of the letters of credit listed on
Schedule 5.2.7 shall have been cancelled and replaced by the Purchaser to the satisfaction of the applicable beneficiary of the applicable letter of credit. 
 5.2.8    Escrow Agreement. The Purchaser shall have entered into the Escrow Agreement. 
 If any of the foregoing conditions in this Article has not been fulfilled by Closing, the Vendors’ Representative, on behalf of the Vendors, may terminate this Agreement by notice in writing to the Purchaser, in
which event the Corporation and the Vendors are released from all obligations under this Agreement other than the Continuing Obligations; and unless the Vendors’ Representative can show that the condition relied upon could reasonably have been
performed by the Purchaser had the Purchaser used commercially reasonable efforts, the Purchaser is also released from all obligations under this Agreement other than the Continuing Obligations; 
  

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provided that, in respect of the conditions specified in section 5.2.1, unless the breach results in a Material Adverse Effect on the Purchaser or its
ability to consummate the transaction contemplated hereby, the Vendors (provided all the other conditions to Closing have been satisfied or waived) will be required to complete the sale of the Purchased Shares under this Agreement notwithstanding
the breach. The Vendors’ Representative, on behalf of the Vendors, may waive compliance with any condition in whole or in part if they see fit to do so, without prejudice to their rights of termination in the event of non-fulfillment of any
other condition, in whole or in part; however, if the Closing occurs, the Vendors shall be deemed to have waived all conditions not otherwise satisfied. 
  

	5.3	Obligations not to Terminate 

 NOTWITHSTANDING ANY
TERMINATION BY THE PURCHASER OR THE VENDORS UNDER SECTIONS 5.1 OR 5.2, THE OBLIGATIONS IN SECTIONS 4.4.6{NO FINDER’S FEES}, 10.1{CONFIDENTIALITY} AND 10.2{PUBLIC NOTICES} (COLLECTIVELY, THE “CONTINUING OBLIGATIONS”) SHALL
REMAIN IN FULL FORCE AND EFFECT. 
 ARTICLE 6 
 ADDITIONAL AGREEMENTS OF THE PARTIES 
  

	6.1	Vendors’ Representative to Represent Vendors 

 6.1.1    The Vendors’ Representative, on the terms hereafter set out, shall act for all Vendors with respect to the determination of the Closing Date Statement, with respect to the waiver of any condition under, and
the decision to terminate this Agreement pursuant to, section 5.2, with respect to claims for indemnification made under section 7.1.1 by the Purchaser, with respect to claims by the Vendors against the Purchaser under this Agreement or
the agreements referred to herein, and with respect to any other decision, consent or waiver to be made by the Vendors hereunder, other than any matter relating to a claim for indemnification under section 4.2. For greater certainty, the
assumption by the Vendors’ Representative of the responsibilities set out in this section 6.1 does not make the Vendors’ Representative liable for more than its Pro Rata Share of any claim by the Purchaser. In each case in this
Agreement, the Purchaser shall be entitled to direct all 

  

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communications through, and rely on decisions made by, the Vendors’ Representative. With respect to all such matters, the Vendors’ Representative
may (i) take any and all actions (including without limitation executing and delivering any documents), incurring any costs and expenses for the account of the Vendors and making any and all determinations which may be required or permitted to
be taken by the Vendors under this Agreement, including in connection with section 7.1.1 of this Agreement, (ii) exercise such other rights, power and authority as are authorized, delegated and granted to the Vendors’ Representative
under this Agreement, (iii) dispute or refrain from disputing any claim made by the Purchaser under this Agreement, (iv) negotiate and compromise any dispute that may arise under and exercise or refrain from exercising any remedies
available under this Agreement (other than claims pursuant to section 7.1.2), (v) execute any settlement agreement, release or other document with respect to such dispute or remedy, and (vi) exercise such rights, power and authority
as are incidental to the foregoing. 
 6.1.2    Each of the Vendors acts through the Vendors’ Representative with
respect to the matters for which Vendors are to act as aforesaid and none of the Vendors have the right to act independently with respect to any such matter or to institute any suit, action or proceeding, now existing or hereafter arising, against
the Purchaser with respect to this Agreement, any such right being irrevocably and exclusively with the Vendors’ Representative. Notwithstanding any disagreement or dispute among the Vendors or between any of the Vendors and the Vendors’
Representative, the Purchaser shall be entitled to rely on any and all action taken by the Vendors’ Representative under this Agreement, without any liability to, or obligation to inquire of, any of the Vendors. 
 6.1.3    The power, rights, and authority of the Vendors’ Representative, as described in this Agreement, and the
indemnification entitlement of the Vendors’ Representatives by the Vendors, shall be effective until all rights and obligations of the Vendors under this Agreement, have terminated, expired or been fully performed. Each of the Vendors shall
promptly do, make, execute, deliver, or cause to be done, made, executed or delivered, all such further acts, documents and things as the Vendors’ Representative may reasonably require from time to time for the purpose of giving effect to this
section 6.1 and shall use 
  

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best efforts and take all such steps as may be within its power to implement the provisions of this section 6.1. 
 6.1.4    Each of the other Vendors shall severally indemnify and hold the Vendors’ Representative and its’ partners,
officers, directors, employees and agents (collectively, the “Vendors’ Representative Indemnified Parties”) harmless from and against such Vendor’s Pro Rata Share of any Damages (except as a result from the Vendors’
Representative’s gross negligence or willful misconduct as determined by a court of competent jurisdiction) that the Vendors’ Representative Indemnified Parties may suffer or incur as a result of a claim by a third party in connection with
any action taken by the Vendors’ Representative, in its capacity as Vendors’ Representative. Each of the Vendors shall bear its Pro Rata Share of such Damages (provided that such amount shall not exceed such Vendor’s Pro Rata Share of
the Share Purchase Price). The Vendors’ Representative Indemnified Parties shall not be liable to the other Vendors for any error of judgment, or any act done or step taken or omitted in good faith or for any mistake in fact or law, or for
anything which it may do or refrain from doing in connection herewith, except for its gross negligence, willful misconduct or fraud as determined by a court of competent jurisdiction. 
 6.1.5    The Vendors’ Representative may seek the advice of legal counsel, engage experts or otherwise incur reasonable expenses
in the event of any dispute or question as to the construction of any of the provisions of this Agreement, or its duties hereunder, and the Vendors’ Representative Indemnified Parties shall incur no liability to the other Vendors with respect
to any action taken, omitted or suffered by it in good faith in accordance with the opinion of such counsel or advice of such expert. 
 6.1.6    The other Vendors shall severally reimburse or otherwise hold the Vendors’ Representative harmless from and against their Pro Rata Share of any and all costs and expenses incurred by the Vendors’
Representative in connection with this Agreement and the transactions contemplated hereby, including attorneys’ fees or fees of other experts, and, in addition to any and all other remedies available, the Vendors’ Representative shall have
the right to direct any amounts due to the other Vendors under this Agreement be paid to the Vendors’ Representative Indemnified Parties to satisfy such costs and expenses. 
  

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 6.1.7    By execution and delivery of this Agreement by such Vendor or his or her
representative, agent or attorney, each of the Vendors hereby irrevocably constitutes and appoints the Vendors’ Representative as the true and lawful agent and attorney-in-fact of such Vendor, which appointment is coupled with an interest, with
full authority and power of substitution, except to the extent expressly provided to the contrary herein, to act in the name, place and stead of such Vendors with respect to all powers and rights in or relating to this Agreement or relating to the
subject matter of this Agreement (including without limitation to (i) amend or terminate this Agreement in accordance with this Agreement, (ii) receive or deliver any and all notices to be delivered to or by any of the Vendors hereunder,
(iii) receive, hold and deliver to the Purchaser share certificates and any other documents (including stock powers or other instruments or transfer relating thereto), and (iv) negotiate, execute, acknowledge, deliver, record and file all
ancillary agreements (and without limitation any agreement entered into in connection with tax matters, any Claim or the Escrow Agreement and/or the Exchange Fund Agreement relating to the release of amounts pursuant to the Escrow Agreement for the
benefit of the Vendors), certificates and documents which the Vendors’ Representative deems necessary or appropriate in its sole discretion in connection with the consummation of the transactions contemplated by the terms and provisions of this
Agreement). Purchaser and each of the Vendors hereby acknowledges that the Vendors’ Representative, with respect to the matters set out in this section 6.1, will not be acting in such Person’s individual capacity pursuant to the terms
of this Agreement, but solely in its capacity as the Vendors’ Representative (and accordingly, as a representative of the Vendors). Purchaser hereby agrees that the Vendors’ Representative will not be liable to that party for any action
taken or omitted in good faith in its capacity as the Vendors’ Representative. 
 6.1.8    For greater certainty and
without limitation this section 6.1 shall survive the Closing. 
  

	6.2	Access to Information 

 Until the Time of Closing,
subject to compliance with all applicable antitrust or competition laws, the Corporation shall give to the Purchaser and its accountants, legal advisers 
  

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and representatives reasonable access, subject to competition concerns, during business hours to the books, records and facilities relating to the Business,
as the case may be, and to the Corporation’s personnel and shall furnish them with all such information relating to the Business and the Purchased Shares as the Purchaser may reasonably request, provided that in no event shall this
section 6.2 require the Corporation to share any Intellectual Property Rights with the Purchaser or any other person. 
  

	6.3	Conduct of Business Until Time of Closing 

 Except
as expressly provided in this Agreement or except with the prior written consent of the Purchaser, prior to the Time of Closing the Corporation shall: 
 6.3.1    use commercially reasonable efforts to operate the Business only in the ordinary course, consistent with past practice and, to the extent consistent with such operation, use reasonable
efforts to preserve its business organization, including maintaining its good standing in relevant jurisdictions, retaining the services of its officers and employees, and continuing its business relationships with customers, suppliers and others
having business dealings with it; 
 6.3.2    use commercially reasonable efforts to maintain the physical assets of the
Corporation and the Subsidiaries, whether owned or leased, in condition and repair at least as good as their current condition and repair, with reasonable wear and tear excepted, and subject to section 6.7, use commercially reasonable efforts
to maintain insurance thereon until, but not after, the Time of Closing comparable in amount, scope and coverage to that in effect on the date of this Agreement; 
 6.3.3    maintain the books, records and accounts relating to the Corporation and the Subsidiaries in the ordinary course on a basis consistent with past practice; 
 6.3.4    maintain ordinary course policies, procedures and practices with respect to the maintenance of working capital balances,
collection of accounts receivable, making of capital expenditures, maintenance of inventory levels, maintenance of claim and other liability reserves and accruals, timely payment of accounts payable and cash management; 
  

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promptly give Purchaser notice of any breach of any representation or warranty not previously disclosed under section 4.1 or any breach or
non-compliance with any covenant hereunder; 
 6.3.5    refrain from doing, or use commercially reasonable efforts to do,
all acts and things in order to ensure that the representations and warranties in section 4.1 remain true and correct in all material respects at the Time of Closing as if such representations and warranties were made at and as of such date and
to satisfy or cause to be satisfied the conditions in section 5.1 which are within its control; 
 6.3.6    promptly
advise the Purchaser in writing if the Corporation, any CMC Subsidiary or any Vendor receives notice of the commencement or written threat of any material claim, litigation, proceeding or material warranty claim against or directly affecting the
Corporation or any CMC Subsidiary or the Business or any rulings, decrees or other material developments in any claim, action or suit described in the CMC Disclosure Schedule or arising after the date hereof; and 
 6.3.7    Other then in respect of CMC Electronics Inc. Personal Computer (PC) Purchase Program, cause the repayment of all loans and
advances of the Corporation or any CMC Subsidiary made to any Vendor or to the directors, officers or employees of Corporation, the CMC Subsidiaries or the Vendors. 
  

	6.4	Negative Covenant 

 6.4.1    Except as expressly provided in this Agreement or except with the prior written consent of the Purchaser, from the date hereof until Time of Closing, the Corporation shall ensure that it and the CMC Subsidiaries
do not: 
 6.4.1.1    amend its articles, by-laws, constating documents or other organizational documents; 

6.4.1.2    amalgamate, merge or consolidate with, or acquire all or substantially all the shares or assets of, any Person;

  

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 6.4.1.3    transfer, lease, license, sell or otherwise dispose of any of its assets,
other than inventory in the ordinary course of the Business, consistent with past practice; or 
 6.4.1.4    issue,
redeem, repurchase or acquire Shares or any other securities, (other than as a result of the death or termination or resignation of employment of an Employee Shareholder) or declare, set aside or pay of any dividend or other distribution (whether in
cash, stock or property), other than inter-company dividends, with respect to Shares; 
 6.4.1.5    make any increase in
or modification of the compensation payable or to become payable by the Corporation and any of the CMC Subsidiaries to any of its directors or officers, outside the ordinary course of business, consistent with past practices, or enter into or modify
any agreement to grant to any such director or officer any in severance or termination pay; 
 6.4.1.6    acquire or
make any investment in any corporation, partnership, other business organization or division thereof; 
 6.4.1.7    adopt any new plan or make any material increase in or modification of any existing CMC Employee Plans or any bonus, pension, insurance or benefit arrangement (including, but not limited to, the granting of
stock options, restricted stock awards or stock appreciation rights and excluding bonuses which are paid in the ordinary and regular course of business consistent with past practice) made to, for or with any of the directors, officers or employees
of the Corporation or any of the CMC Subsidiaries; 
 6.4.1.8    make any acquisition or sale of property or assets
aggregating $4,000,000, other than in the ordinary and regular course of business consistent with past practice or other than capital expenditures; 
 6.4.1.9    (A) other than in the ordinary and regular course of business consistent with past practice, incur, assume or guarantee any debt for borrowed money, 
  

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 (B) issue or sell any securities convertible into or exchangeable for debt securities of the
Corporation or any of the CMC Subsidiaries or (C) issue or sell options or other rights to acquire from the Corporation or any of the CMC Subsidiaries debt securities or any securities convertible into or exchangeable for any such debt
securities; 
 6.4.1.10    other than in the ordinary and regular course of business consistent with past practice,
create or assume any Charge on any asset other than Permitted Charges; 
 6.4.1.11    resolve to approve a split,
combination or reclassification of any of the outstanding shares of the Corporation or any of the CMC Subsidiaries; 
 6.4.1.12    enter into any transaction (other than transactions on arm’s length terms consistent with past practice exclusively between any of the Corporation and/or the CMC Subsidiaries) with any affiliate, or
other than in the ordinary course of business, make any material gifts of or sell, lease, transfer or exchange any asset for less than the fair market value thereof; 
 6.4.1.13    make or change any Tax election, change an annual accounting period, adopt or change any accounting method, file any amended Tax return, enter into any closing agreement, settle any Tax
claim or assessment, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment, or take any other similar action, or omit to take any action relating to the
filing of any Tax return or the payment of any Tax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action or admission would have the effect of increasing in a material manner any present or future
Tax liability or decreasing in a material manner any present or future Tax asset of the Corporation, the Purchaser or any of their respective affiliates; 
  

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 6.4.1.14    amend, modify, extend, renew or terminate any lease for the benefit of
the Corporation or any CMC Subsidiary or enter into any new lease, sublease, license or other agreement for the use or occupancy of any real property; 
 6.4.1.15    release or settle any lawsuit in excess of $150,000, except for reasonable consideration and after consultation with the Purchaser; 
 For greater certainty and without limitation the Corporation may make payments in respect of the cancellation of Options. 
  

	6.5	Covenants Prior to Closing 

 6.5.1    As soon as reasonable following the date hereof, the Corporation and the Purchaser shall (a) at the Purchaser’s expense, file (jointly, where applicable) all applications for all Corporation’s
Regulatory Approvals and Purchaser’s Regulatory Approvals (and use commercially reasonable efforts to prosecute diligently any related proceedings) in connection with the purchase and sale of the Purchased Shares, and in order to consummate the
transactions contemplated by this Agreement, and (b) cooperate with the other as may reasonably be requested in connection with the foregoing; provided that, except as set out above, in no event will the Purchaser, the Corporation, its
Subsidiaries or the Vendors be obligated to make any payment to third parties in connection with its compliance of this provision. 
 6.5.2    Without limiting the generality of section 6.5.1, within 5 Business Days after the date of this Agreement, the Corporation and the Purchaser (or their respective ultimate parent entities) shall each
file a Notification and Report Form For Certain Mergers and Acquisitions with respect to the Agreement with the DOJ and the FTC pursuant to the HSR Act. The Corporation and the Purchaser shall furnish to each other such necessary information as the
other may request in connection with the preparation of any report required to be filed and shall deliver to each other draft copies of all such reports to be filed by it (or its ultimate parent entity), or where appropriate, provide such copies to
outside counsel for the other party, prior to the filing thereof. The Corporation and the Purchaser shall each give notice to the other upon receiving any material communication from the FTC or the DOJ regarding the filing, shall each provide
responses to requests from the 
  

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FTC or the DOJ to the extent practicable and shall promptly provide the other with a copy of any such communication, or where appropriate, provide such copy
to outside counsel for the other party. 
  

	6.6	Purchaser’s Covenant 

 Except as expressly
provided in this Agreement or except with the prior written consent of the Vendors’ Representative, on behalf of the Vendors, prior to the Time of Closing, the Purchaser shall do or refrain from doing or use commercially reasonable efforts to
do all acts and things in order to ensure that the representations and warranties in section 4.4 remain in all material respects true and correct at the Time of Closing as if such representations and warranties were made at and as of such date
and to satisfy or cause to be satisfied the conditions in section 5.2 which are within its control. 
  

	6.7	Insurance 

 The Corporation shall maintain in full
force all policies and contracts of insurance which are now in effect (or renewals thereof) and under which the Corporation, the CMC Subsidiaries or any of the assets of the Corporation or the Subsidiaries are insured. Vendors’ Representative,
the Corporation and the CMC Subsidiaries will if requested in writing within 10 days following the date hereof use reasonable efforts to provide continued coverage under all such policies until such time as the Purchaser is able to transition the
Corporation and the CMC Subsidiaries to Purchaser insurance policies or find other replacement policies. Any prepaid insurance premiums with respect to policies continuing after closing will be reflected on the Closing Balance Sheet as a prepaid
expense for the credit of the Vendors. 
  

	6.8	Corporate Action 

 At or prior to the Time of
Closing, the Corporation shall cause all necessary corporate action to be taken for the purpose of approving the transfer of the Purchased Shares to the Purchaser. 
  

	6.9	Obtaining of Consents and Approvals 

 The
Corporation shall use reasonable efforts to deliver, at or prior to the Time of Closing, 
  

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the consents and approvals referred to in Schedule 6.9. If, notwithstanding such efforts, the Corporation is unable to obtain any of such consents and
approvals, the Corporation shall not be liable to the Purchaser for any breach of covenant. For the purposes hereof, the Corporation shall not be required to pay any monies or give any other consideration in order to obtain any consent or approval,
other than payments in respect of reasonable legal fees incurred by third parties in connection with a request for a consent or approval and the expenses of the Corporation (including the fees and disbursements of the Corporation’s Counsel) in
obtaining such consents and approvals. If upon completion of the transactions contemplated hereby any of the consents or approvals referred to in Schedule 6.9 have not been obtained, the Vendors’ Representative shall continue after the
Closing to use reasonable efforts for a period of up to 30 days as requested by the Purchaser from time to time in order to attempt to obtain any such consent or approval. 
 The Purchaser shall, at the request of the Vendors’ Representative, promptly furnish the Vendors’ Representative with copies of such documents
and information with respect to the Purchaser, including financial information, as the Vendors’ Representative may reasonably request in connection with the obtaining of any consents contemplated by this Agreement. 
  

	6.10	Access of the Vendors to Records 

 The
Vendors’ Representative shall, for a period of 7 years from the applicable Closing Date, have access to, and the right to copy, at its expense, for bona fide business purposes and during usual business hours, upon reasonable prior
notice to the Purchaser, all relevant books and records relating to any Tax filing, Tax audit or litigation associated with the period up to the Closing Date. The Purchaser shall retain and preserve all books and records relating to any pre-Closing
Tax filing, Tax audit or litigation for such 7 year period. 
  

	6.11	Cooperation 

 6.11.1    The
parties shall cooperate fully and in good faith with each other and their respective legal advisers, accountants and other representatives in connection with any steps required to be taken as part of their respective obligations under this
Agreement. 
  

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 6.11.2    Without limiting the generality of section 6.11.1, the Purchaser shall
use its commercially reasonable efforts to cooperate in good faith with the Vendors and the Corporation in connection with any pre-closing reorganization by the Vendors and the Corporation, including with respect to its shareholdings in the
Corporation, provided that such reorganization will not adversely affect the Corporation, the Business or the Purchaser. 
  

	6.12	Insurance and Indemnification 

 The Purchaser
agrees that for the period from the Closing Date until six years after the Closing Date, Purchaser will cause the Corporation or any successor to the Corporation to maintain the Corporation’s current directors’ and officers’ insurance
policy or an equivalent policy subject in either case to terms and conditions no less advantageous to the directors and officers of the Corporation or any of the Subsidiaries than those contained in the policy in effect on the date hereof, for all
present and former directors of the Corporation, any of the Subsidiaries or any predecessor covering claims made prior to or within six years after the Closing Date, and the Purchaser shall provide the Vendors’ Representative, acting
reasonably, with evidence as to the satisfaction by the Purchaser of these covenants. Purchaser also agrees after the expiration of such six year period to use commercially reasonable efforts to cause such directors and officers to be covered by the
Corporation’s then existing directors’ and officers’ insurance policy, if any. Purchaser agrees that all rights to indemnification or exculpation now existing in favour of present or former directors or officers of the Corporation or
any of the Subsidiaries as provided in its articles of incorporation or by-laws, as amended, or indemnification agreements, in effect on the date hereof shall survive the Closing and shall continue in full force and effect for a period of not less
than six years from the Closing Time. 
  

	6.13	Letters of Credit 

 The Purchaser shall, on or
prior to the Time of Closing, have replaced the letters of credit listed on Schedule 5.2.7. 
  

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	6.14	Charges 

 The Corporation shall obtain releases of
all Charges relating to Indebtedness, other than Permitted Charges. 
  

	6.15	Tax Matters 

 6.15.1    Purchaser shall prepare or cause to be prepared, on a basis consistent with prior returns (to the extent permitted by applicable Laws), and timely file or caused to be timely filed all Tax Returns of the
Corporation and each CMC Subsidiary for all periods ending on or prior to the Closing Date which are to be filed after the Closing Date. Thirty days prior to filing such Tax Returns, the Purchaser shall inform the Vendors’ Representative in
writing (the “Tax Notice”) of such filing and shall provide the Vendors’ Representative with a copy of the Tax Return and any relevant working papers. 
 6.15.1.1    If the Vendors’ Representative notifies the Purchaser that the Vendors’ Representative agrees with the filing of such Tax Return or fails to deliver notice to the Purchaser of
its disagreement therewith within 20 days of receipt of the Tax Notice, the Vendors’ Representative and the Purchaser shall issue a joint direction to the Escrow Agent within thirty (30) days after the date on which such Taxes are
paid to release from the Escrow Amount the amount of any Taxes of the Corporation and each CMC Subsidiary reflected on such Tax Returns to the extent such Taxes are in excess of the reserve for Taxes in the Closing Date Balance Sheet. 
 6.15.1.2    If the Vendors’ Representative, acting in good faith, believes that such Tax Returns are inaccurate, the
Vendors’ Representative shall notify in writing the Purchaser of its disagreement, within 20 days after receipt thereof, together with reasonable particulars of the basis of such disputes. The Vendors’ Representative and the Purchaser
shall attempt, in good faith, to resolve their differences with respect thereto within fifteen (15) days after the Vendors’ Representatives’ notice of disagreement. To the extent that the Vendors' Representative and the Purchaser are
unable to agree, the dispute may be referred 
  

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by either party for determination by arbitration in a similar manner as contemplated by section 3.5.4. Once the dispute is settled amongst the Vendors'
Representative and the Purchaser or determined by the Arbitrator, the Purchaser and the Vendors’ Representative shall, if applicable, issue a joint-direction, consistent with the settlement or determination, as the case may be, to release from
the Escrow Amount, the amount so determined. 
 Notwithstanding the foregoing, the Purchaser may cause such Tax Returns to be filed; however,
such filing would be without prejudice to Vendors’ right to dispute the Taxes payable. 
 6.15.2 Purchaser shall prepare or cause to be
prepared, on a basis consistent with prior returns to the extent consistent with applicable Law, and file or cause to be filed all Tax Returns of the Corporation and each CMC Subsidiary for tax periods that begin before the Time of Closing on the
Closing Date and end after the Time of Closing on the Closing Date. Purchaser shall permit the Vendors' Representative to review and comment upon such Tax Returns prior to filing. The procedures set out in section 6.15.1 with respect to the
review and dispute, if any, of such Tax Returns and amount of Tax which relates to the portion of such taxable period ending on the Closing Date, shall apply mutatis mutandis. 
 6.15.3    Any Tax sharing or similar agreements with respect to or involving the Corporation or any CMC Subsidiary shall be
terminated as of the Closing Date and, after the Closing Date, neither the Corporation nor any CMC Subsidiary shall be bound thereby or have any liability thereunder. 
 6.15.4    Purchaser, the Corporation and each CMC Subsidiary, the Vendors and Vendors’ Representative shall cooperate fully, as and to the extent reasonably requested by the other party, in
connection of the filing of Tax Returns pursuant to this section 6.15 and any audit, litigation or other proceeding with respect to Taxes of the Corporation or any CMC Subsidiary. Purchaser and the Vendors’ Representative further agree,
upon request, to use reasonable efforts to obtain any certificate or other document from any governmental body 
  

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or any other person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed. 
 6.15.5    For purposes of this Agreement, Taxes shall be computed based on the closing of the books method as at the Time of Closing
on the Closing Date provided, however, in the case of any Tax imposed on the ownership or holding of real or personal property, such Taxes shall be prorated based on the percentage of the actual period to which such Taxes relate that precedes the
Closing Date. The Purchaser shall cause the Corporation and CMC Electronics to make the election provided in subsection 256(9) of the ITA and any corresponding provincial taxing legislation. 
  

	6.16	Non-Solicit of Employees 

 The ONCAP Parties shall
not for a period commencing on the date hereof and ending on the second anniversary of the Closing Date, without the prior written approval of the Purchaser: 
  

	 	(a)	solicit for employment, either directly or through agents, any Key Employee; or 

  

	 	(b)	direct any of their operating companies to solicit for employment, either directly or through agents, any Key Employee; 

 provided that (A) the ONCAP Parties shall not be precluded from soliciting or hiring any employee of the Corporation or the CMC Subsidiaries who:
(i) responds to any public announcement or general solicitation (including a non-directed solicitation by an employment consultant) or (ii) has ceased to be employed by the Corporation or the CMC Subsidiaries, as the case may be, prior to
the commencement of discussions between such employee and the ONCAP Parties; and (B) the foregoing non-solicitation provision shall not apply to any of the operating companies of any of the ONCAP Parties, unless such operating company was
directed by any of the ONCAP Parties to solicit a Key Employee. 
  

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 ARTICLE 7 
 INDEMNIFICATION 
  

	7.1	Indemnification by the Vendors 

 7.1.1    Each Vendor shall severally indemnify and save the Purchaser harmless from and against that Vendor’s Pro Rata Share, if any, of any Damages suffered by the Purchaser or by the Corporation or any CMC
Subsidiary: 
  

	 	(a)	as a result of any breach of representation or warranty of section 4.1 by the Corporation; 

  

	 	(b)	associated with any breach of a covenant or agreement of the Corporation or the Vendors set forth in this Agreement; 

  

	 	(c)	related to the failure to pay in full the amounts owing pursuant to the Retention Bonuses, (the “Retention Bonus Indemnity”); 

  

	 	(d)	any liability for Taxes arising out of or relating to (i) any Tax period of the Corporation or any CMC Subsidiary ending on or prior to the Time of Closing on the Closing Date,
or the portion ending on the Time of Closing on the Closing Date of any Tax period of the Corporation or any CMC Subsidiary that includes, but does not end on, the Time of Closing on the Closing Date, or (ii) the transactions contemplated by
this Agreement, in each case, to the extent such Taxes exceed any reserve for Taxes set forth in the Closing Date Balance Sheet (the “Tax Indemnity”); or 

  

	 	(e)	any liability exceeding $1,258,000 arising after the Time of Closing relating to the Moore patent claim described in Section 4.1.20 of the CMC Disclosure Schedules (the
“Moore Claim Indemnity”). 

 7.1.2    Each Vendor (and only such Vendor) shall severally
indemnify and save the Purchaser harmless from and against any Damages suffered by the Purchaser or by the Corporation or any CMC Subsidiary as a result of any breach of representation or warranty 
  

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by that Vendor of section 4.2, provided that Damages from any such Claim are paid first out of such Vendor’s Pro Rata share of the Escrow Amount.

  

	7.2	Indemnification by the Purchaser 

 The Purchaser
shall indemnify and save the Vendors harmless from and against any Damages suffered by one or more of the Vendors: 
  

	 	(a)	as a result of any breach of representation or warranty by the Purchaser of sections 4.4.1 or 4.4.2; or 

  

	 	(b)	associated with any breach of a covenant or agreement of the Purchaser set forth in this Agreement. 

  

	7.3	Notice of Claim 

 If the Purchaser or the Vendors
wish to make a claim for indemnification (a “Claim”) pursuant to this Article 7 (such party or parties herein called the “Indemnified Party”) against one or more Vendors, on the one hand, or the Purchaser, on the other hand
(the party or parties against whom the Claim is made herein called the “Indemnifying Party”), the Indemnified Party shall promptly give notice in writing (the “Claim Notice”) to the Indemnifying Party of the Claim. Such notice
shall specify whether the Claim originates with the Indemnified Party (an “Original Claim”) or with a Person (a “Third Party Claimant”) other than the Indemnified Party (a “Third Party Claim”), and shall also specify
with reasonable particularity (to the extent that the information is available): 
 7.3.1    the factual basis for the
Claim (including, in the case of a Third Party Claim, attaching copies of all relevant pleadings, demands and other papers served on the Indemnified Party); and 
 7.3.2    the amount of the Claim, or, if an amount is not then determinable, an approximate and reasonable estimate of the potential amount of the Claim. 
 In respect of a Claim by the Purchaser or a Third Party Claimant pursuant to section 7.1.1, the Vendors’ Representative shall administer the Claim on behalf of
the Vendors named in the Claim, 
  

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in which circumstances, while liability remains with the Vendors named in the Claim, the Vendors’ Representative will be the party entitled to receive
and issue notices and make decisions in respect of any matter related to the Claim on behalf of the Indemnifying Parties. In respect of a Claim by the Purchaser pursuant to section 7.1.2, each Vendor named in a Claim shall administer the Claim
itself. 
  

	7.4	Procedure for Indemnification 

 7.4.1    Original Claims. Following receipt of notice of an Original Claim from an Indemnified Party, the Indemnifying Party shall have 30 days to make such investigation of the Original Claim as the
Indemnifying Party considers necessary or desirable. For the purpose of such investigation, the Indemnified Party shall make reasonably available to the Indemnifying Party during normal business hours the information relied upon by the Indemnified
Party to substantiate the Original Claim and the personnel of the Indemnified Party with knowledge regarding the subject matter of the Original Claim. If the Indemnified Party and the Indemnifying Party agree at or prior to the expiration of such
30 day period (or any mutually agreed upon extension thereof) to the validity and amount of the Original Claim, the Indemnifying Party shall issue a joint direction to the Escrow Agent to release from the Escrow Amount to the Indemnified Party
the full agreed upon amount of the Original Claim. If the Indemnified Party and the Indemnifying Party do not agree within such period (or any mutually agreed upon extension thereof), the Indemnifying Party and the Indemnified Party agree that the
Indemnified Party shall be entitled to bring an action in a court of law regarding the Original Claim. 
 7.4.2 Third Party Claims. 

7.4.2.1    With respect to any Third Party Claim (other than Tax Claims), the Indemnifying Party shall have the right, at its own
expense, to participate in or assume control of the negotiation, settlement or defense of the Third Party Claim. If the Indemnifying Party elects to assume such control within 10 days of receipt of the Claim Notice, the Indemnifying Party shall
have the right to employ counsel of its choice, reasonably acceptable to the Indemnified Party, to defend any such Third Party Claim, provided that the Indemnified Party shall in any 

  

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event have the right to participate, at its own expense, in the defense of any Third Party Claim which the Indemnifying Party is defending. The Indemnifying
Party, if it shall have assumed the defense of any Third Party Claim in accordance with the terms thereof, shall have the right, upon thirty days prior notice to the Indemnified Party, to consent to the entry of judgment with respect to, or
otherwise settle such Third Party Claim; provided that such judgment or settlement does not impose any obligation on the Indemnified Party (other than the payment of money that constitutes Damages which will be paid in full by the Indemnifying
Party) or restrict the action of the Indemnified Party. 
 7.4.2.2    If the Indemnifying Party does not elect to assume
control as contemplated in section 7.4.2.1 or having elected to assume control as contemplated in section 7.4.2.1 thereafter fails to defend any such Third Party Claim within a reasonable time, the Indemnified Party shall be entitled to
assume such control. Subject to the provisions of section 7.5.4.1, the Indemnifying Party shall be bound by any and all judgments of a court following a contested proceeding or other settlement that is obtained against the Indemnified Party
with respect to such Third Party Claim. 
 7.4.2.3    Whether or not the Indemnifying Party chooses to defend or
prosecute any Claim involving a third party, all the parties accused shall cooperate in the defense or prosecution thereof and shall furnish such records, information and testimony, and attend such conferences, discovery proceedings, hearings,
trials and appeals as may reasonably be requested in connection therewith, at the expense of the Indemnifying Party. 
 7.4.2.4    With respect to Third Party Claims asserted by Government Entities related to Taxes, Purchaser shall use reasonable efforts to notify Vendors’ Representative following receipt of any notice of audit or
other proceeding related to any Tax Return filed by the Corporation or any of the CMC Subsidiaries that cover periods on or before the Closing. Purchaser shall have the right to represent the Corporation or appropriate CMC Subsidiary regarding any
audit or other 

  

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proceeding relating to Taxes. Vendors’ Representative shall have the right, at its expense, to participate in, but not control the portion of any such
audit or proceeding which relates to Taxes for periods or portions thereof which end on or prior to the Time of Closing on the Closing Date and for which the Vendors may be responsible pursuant to this Agreement. Purchaser shall use reasonable
efforts to provide notice to Vendors’ Representative with respect to such audit or proceeding and any negotiations related thereto. 
  

	7.5	Additional Rules and Procedures 

 The obligation of
the parties to indemnify each other pursuant to this Article shall also be subject to the following: 
 7.5.1    No claim
for breach of representation and warranty, covenant or agreement under 7.1.1(a), 7.1.1(b), 7.1.1(d), 7.1.2 or 7.2 shall be valid unless the party against whom such claim is made has been given notice thereof before the date on which the applicable
representation and warranty, covenant or agreement shall have terminated pursuant to section 4.5, provided that any indemnification obligation shall not terminate with respect to any Losses as to which the Indemnified Party shall have given
notice (stating in reasonable detail the basis of the claim for indemnification) to the Indemnified Party before termination of the applicable survival period. 
 7.5.2    Notwithstanding anything contained in this Agreement to the contrary, other than in respect of the Vendors’ obligation to indemnify the Purchaser in respect of (i) a breach of
the representations and warranties set forth in sections 4.1.11 {Tax Matters} and the Ownership of Share Representations; (ii) pursuant to the Retention Bonus Indemnity, the Moore Claim Indemnity and the Tax Indemnity; and
(iii) Claims based on fraud, a Vendor’s obligation to indemnify the Purchaser hereunder shall only apply upon, and to the extent that, the aggregate of the Claims in respect of which the Vendors are required to indemnify exceed $1,000,000
(the “Basket Amount”), for greater certainty the Vendors indemnification obligations under this Agreement shall apply only to Claims which exceed the Basket Amount. 
  

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 7.5.3    Notwithstanding anything contained in this Agreement to the contrary, if the
indemnification obligation of the Vendors exceeds $1,000,000 the Purchaser shall not be entitled to seek indemnification pursuant to Article 7 in connection with any individual Claims or series of related Claims where the aggregate amount of
the Damages to the Purchaser with respect to the individual Claim or series of related Claims is less than $25,000. 
 7.5.4    Notwithstanding anything contained in this Agreement to the contrary: 
 7.5.4.1    Subject to sections 7.5.4.2, 7.5.4.3 and 7.5.4.4, in no event shall the aggregate amount of indemnification obligations of the Vendors, at a particular point in time, exceed the funds in the Escrow Amount
at such time (the “Indemnification Cap”) and claims shall only be satisfied from the Escrow Amount and in no event shall the aggregate amount of indemnification obligations of a particular Vendor for Claims in respect of such Vendor exceed
that Vendor’s Pro Rata Share of the Indemnification Cap. 
 7.5.4.2    Subject to section 7.5.4.4, the
aggregate amount of indemnification obligation of the Vendors may exceed the Indemnification Cap (up to a maximum amount of the Share Purchase Price) only in respect of Claims (i) based on fraud, (ii) in respect of a breach of the
representations and warranties set forth in sections 4.1.11 {TAX MATTERS} and the Ownership of Shares Representations or (iii) in respect of the Retention Bonus Indemnity and the Tax Indemnity, provided that any Damages from any such Claim
are first paid out of the Escrow Amount. 
 7.5.4.3    Subject to section 7.5.4.4, in respect of Claims for
breaches of the representations and warranties set out in section 4.1.10 {ENVIRONMENTAL} only (“Environmental Claim”), to the extent that one or more Claims is made by the Purchaser on a date that is on or after the [*] Release Date
and before the expiry of the relevant survival period, the aggregate amount of the indemnification obligation of the Vendors for Environmental Claims shall not 

  

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exceed the Available Escrow Amount as determined on the [*] Release Date (the “Limit Amount”) after delivery of the [*] Claim Amount; provided
however, that (i) in no event shall the indemnification obligations of a particular Vendor in respect of Environmental Claims under section 4.1.10 exceed such Vendor’s Pro Rata Share of the Limit Amount and (ii) Damages in
respect of any Environmental Claim are initially paid using funds in the Escrow Amount. 
 7.5.4.4    In no event shall
a particular Vendor’s aggregate indemnification obligation under this Agreement or the transactions contemplated hereby (in respect of all Claims hereunder where such Claims may exceed the Indemnification Cap) exceed such Vendor’s Pro Rata
Share of the Share Purchase Price. 
 7.5.5    In the event that any Third Party Claim is of a nature such that the
Indemnified Party is required by applicable law to make a payment to any Person (a “Third Party”) with respect to such Third Party Claim before the completion of settlement negotiations or related legal proceedings, the Indemnified Party
may make such payment and the Indemnifying Party shall, if otherwise required under the provisions of section 7.5, forthwith after demand by the Indemnified Party, reimburse the Indemnified Party for any such payment or if the Vendors are the
Indemnifying Party, the Vendors’ Representative and the Purchaser shall issue a joint direction to the Escrow Agent to pay such amount from the Escrow Amount. If the amount of any liability under the Third Party Claim in respect of which such a
payment was made, as finally determined, is less than the amount which was paid by the Indemnifying Party to the Indemnified Party, the Indemnified Party shall pay such difference to the Indemnifying Party or as the Indemnifying Party directs.

 7.5.6    The Indemnified Party shall not permit any right of appeal in respect of any Third Party Claim to terminate
without giving the Indemnifying Party notice thereof and an opportunity to contest such Third Party Claim. 
 7.5.7    The Purchaser and the Vendors’ Representative shall reasonably cooperate with each other with respect to Third Party Claims, shall keep each other advised with respect 
  

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thereto (including supplying copies of all relevant documentation promptly as it becomes available) and shall each designate a senior officer who will keep
himself informed about and be prepared to discuss the Third Party Claim with his counterparts and with counsel at all reasonable times. 
 7.5.8    In no event shall the Vendors or the Purchaser be liable for punitive or consequential damages. The Indemnified Party shall take reasonable steps to mitigate Damages directly or indirectly incurred or sustained
by it upon and after becoming aware of any event which could reasonably be expected to give rise to Damages. 
 7.5.9    For greater certainty and without limitation, the Purchaser acknowledges that Share Purchase Price takes into account all liabilities in respect of the defined-benefit plans and any other post-retirement or
retirement compensation plans of the Corporation or any of its Subsidiaries and as a result the Vendors shall not in any event be liable for any Claim in respect of such matters or any adjustment under section 3.5.1 hereunder. 
 7.5.10    Notwithstanding any other provision in this Agreement (including, but not limited to, the appointment of the Vendors’
Representative at section 6.1 as representative of all the Vendors), the Purchaser and each of the Vendors acknowledge and agree that the obligations of each of the Vendors pursuant to or in connection with this Agreement (whether under this
Article 7 or otherwise) are several, and are not joint and several. For greater certainty and without limitation, subject to the limitations on indemnification obligations set forth in section 7.5 (and in particular the limitations in
section 7.5.4.1), the total liability of a particular Vendor with respect to a particular Claim under section 7.1.1 shall not exceed such Vendor’s Pro Rata Share of the amount of such Claim. 
 7.5.11    Payments out of the Escrow Amount or, where applicable, by the Vendors under this Article 7, shall be limited to the
amount of any Damage that remains after deducting therefrom any reserve or indemnity, contribution, insurance payment, benefit or other similar payment actually recovered by the Purchaser, the Companies or any Affiliates of Purchaser from any third
party (including, for greater certainty and without limitation, a Governmental Entity) with respect thereto. 
  

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 7.5.12    Notwithstanding any other provision, the Vendors shall have no obligation
with respect to any Claim made in connection with a breach of the representations and warranties set forth in section 4.1.10 {ENVIRONMENTAL} to the extent the Purchaser’s claim arises solely out of the voluntary subsurface investigation of
the Purchaser. For the purposes of the foregoing, the term voluntary subsurface investigation of the Purchaser shall not include (i) the removal of subsurface structures or equipment (including, without limitation, tanks or treatment units),
(ii) activities associated with the sale, leasing or financing of the property reasonably required by the lender, purchaser, lessor or lessee or (iii) any other reasonable activity for which the Purchaser has a legitimate business purpose
other than characterization of the premises. 
  

	7.6	Indemnification Claims 

 Other than as set out in
sections 3.6 and 3.7, the parties agree that Article 7 sets out the sole and exclusive manner by which the Purchaser or the Corporation may seek a remedy from the Vendors, or by which the Vendors may seek a remedy from the Purchaser,
for any matter in respect of or in connection with the purchase of the Purchased Shares (including any matter for which the Purchaser or the Vendors may make a Claim under sections 7.1 and 7.2, respectively, including, for greater certainty,
any matter that could be made a Claim under either of those sections but for sections 7.5.2, 7.5.3 or 7.5.4. 
  

	7.7	Waiver 

 The Vendors, for the benefit of the
Corporation and any CMC Subsidiary, irrevocably waive any claims against the current or former directors or officers of the Corporation or any CMC Subsidiary. 
 ARTICLE 8 
 CLOSING 
  

	8.1	Location and Time of the Closings 

 The Closing
shall take place at the Time of Closing on the Closing Date at the offices of Vendors’ Counsel. 
  

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	8.2	Closing Documents 

 On or prior to the Closing the
Vendors shall have delivered or caused the Corporation to deliver to Purchaser all of the following: 
 8.2.1.1    A
compliance certificate from the Vendor Representative and the Corporation, in customary form and reasonably acceptable to Purchaser, stating that the conditions specified in section 5.1 have been satisfied in all material respects; 

8.2.1.2    The share certificates representing the Shares and assignments separate from certificate transferring the Shares to
Purchaser in form and substance reasonably acceptable to Purchaser; 
 8.2.1.3    Resignations, effective as of Closing,
of the Directors of the Corporation and the CMC Subsidiaries; 
 8.2.1.4    A certificate of the Corporation’s
Secretary, in customary form, certifying (a) resolutions of the Corporation’s Board of Directors and Shareholders (if necessary) in connection with the approval of the transactions contemplated by this Agreement; (b) the Articles of
Incorporation and Bylaws of the Corporation; and (c) the incumbency of the officers of the Corporation and the CMC Subsidiaries who have executed documents in connection with this Agreement; 
 8.2.1.5    Certificates of compliance for each of the Corporation and CMC Electronics from Industry Canada and a Certificate of Good
Standing for CMC Aurora from the Secretary of State of the State of Delaware; and 
 8.2.1.6    All minute books, stock
books, ledgers, registers and corporate seals, if any, and other corporate records relating to the organization, management, ownership and maintenance of the Corporation and the CMC Subsidiaries. 
  

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 ARTICLE 9 
 TERMINATION 
  

	9.1	Vendors’ Right to Terminate 

 9.1.1 The
Vendors, when not in default in any material respect in the performance of its obligations under this Agreement (except where a condition in section 5.2 is not satisfied for reasons other than any default by the Vendors), may without prejudice
to any other rights, terminate this Agreement by written notice to Purchaser if the Closing Date does not occur on or prior to the date that is April 15, 2007. 
  

	9.2	Purchaser’s Right to Terminate 

 9.2.1 The
Purchaser, when not in default in any material respect in the performances of their obligations under this Agreement (except where a condition in section 5.1 is not satisfied for reasons other than any default by the Purchaser), may without
prejudice to any other rights, terminate this Agreement by written notice to the Vendors’ Representative if the Closing Date does not occur on or prior to the date that is April 15, 2007. 
  

	9.3	No Liability for Termination 

 If this Agreement is
terminated in accordance with the foregoing provisions of this Article 9, no party (including, for greater certainty, the Vendors’ Representative) shall have any further liability to perform its obligations hereunder except as otherwise
contemplated hereby, and provided that no termination of this Agreement shall relieve any party from any liability for any breach by it of this Agreement. 
 ARTICLE 10 
 GENERAL MATTERS 
  

	10.1	Confidentiality 

 If the transactions contemplated
by this Agreement are not completed, the Purchaser shall not, except as contemplated below, directly or indirectly, use for its own purposes or communicate to any other Person any confidential information or data relating to the Vendors, the
Corporation, its Subsidiaries or to the Business which become known to the Purchaser, its 

  

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accountants, legal advisers or representatives as a result of the Vendors or the Corporation making the same available in connection with the transaction
contemplated hereby. The foregoing shall not prevent the Purchaser from disclosing or making available to its accountants, professional advisers and bankers and other lenders, whether current or prospective, any such information or data. The parties
acknowledge that the provisions of the non-disclosure agreement dated October 2, 2006 between Jeffries Quarterdeck, on behalf of the Corporation, and the Purchaser continue to apply. 
  

	10.2	Public Notices 

 No press release or other
announcement concerning the transaction contemplated by this Agreement shall be made by the Vendors, the Corporation, the CMC Subsidiaries or by the Purchaser without the prior written consent of the other (such consent not to be unreasonably
withheld) provided, however, that any party may, without such consent, make such disclosure if the same is required by any stock exchange on which any of the securities of such party or any of its Affiliates are listed or by any securities
commission or other similar regulatory authority having jurisdiction over such party or any of its Affiliates, and if such disclosure is required the party making such disclosure shall use reasonable efforts to give prior oral or written notice to
the other, and if such prior notice is not possible, to give such notice immediately following the making of such disclosure. 
  

	10.3	No Shop 

 The Vendors and the Corporation hereby
agree that they will not, directly or indirectly, from the date hereof until the earlier of the termination of this Agreement or the consummation of the transactions contemplated hereby, enter into or continue any discussions or arrangements with
any other person related to the sale of the Purchased Shares, Business, business of any CMC Subsidiary or the shares in the capital of any CMC Subsidiary. 
  

	10.4	Expenses 

 Each of the Vendors and the Purchaser
shall be responsible for the expenses (including fees and expenses of legal advisers, accountants and other professional advisers) incurred by it, respectively, in connection with the negotiation and settlement of this Agreement and the 

 

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completion of the transaction contemplated hereby. Notwithstanding the generality of the foregoing, the Purchaser agrees that it will bear the filing fee
associated with the HSR Act and other anti-trust and regulatory filings in its entirety. 
  

	10.5	Assignment 

 Except as provided in this section, no
party may assign its right or benefits under this Agreement. The Purchaser may, at any time prior to the Time of Closing: 
 10.5.1    assign all (but not less than all) of its rights and benefits under this Agreement to any Person if: 
 10.5.1.1    the prior written consent of the Vendors’ Representative has been obtained; and 
 10.5.1.2    the assignee delivers to the Vendors an instrument in writing executed by the assignee confirming that it is bound by and shall perform all of the obligations of the Purchaser under this Agreement as if it
were an original signatory; 
 10.5.2    assign all (but not less than all) of its rights and benefits under this
Agreement to any Affiliate of the Purchaser who delivers an instrument in writing to the Vendors similar to the one contemplated by section 10.5.1.2; 
 provided that no assignment contemplated above shall relieve the Purchaser of its payment obligations under this Agreement. In the event of an assignment contemplated above, any reference in this Agreement to “Purchaser” shall be
deemed to include the assignee. 
  

	10.6	Notices 

 Any notice or other communication
required or permitted to be given hereunder shall be in writing and shall be given by prepaid first-class mail, by facsimile or other means of electronic communication or by hand-delivery as hereinafter provided. Any such notice or other
communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lockout or otherwise, shall be deemed to have been received on the fourth Business Day after the post-marked
date thereof, or if sent by facsimile or 

  

 [  *  ] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the Commission. 

 - 106 - 
  

 
other means of electronic communication, shall be deemed to have been received on the Business Day following the sending, or if delivered by hand shall be
deemed to have been received at the time it is delivered to the applicable address noted below either to the individual designated below or to an individual at such address having apparent authority to accept deliveries on behalf of the addressee.
Notice of change of address shall also be governed by this section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by facsimile or
other means of electronic communication and shall be deemed to have been received in accordance with this section. Notices and other communications shall be addressed as follows: 
  

	 	(a)	if to the Vendors or to the Vendors’ Representative: 

 ONCAP L.P. 
 161 Bay Street 
 48th Floor, Box 220 
 Toronto, Ontario M5J 2S1 
 Attention: Michael Lay and Gregory Baylin 
 Telecopier number: (416) 214-6106 
 - and - 
 Jean-Pierre Mortreux 
 600 Dr. Frederik Phillips Boulevard 
 Ville Saint-Laurent 
 Quebec H4M 2S9

 Telecopier number: (514) 748-3025 
 with a copy (which shall not constitute notice) to Vendors’ Counsel at: 
 Torys LLP 
 The Maritime Life Tower 
 Suite 3000, P.O.
Box 270 
 Toronto-Dominion Centre 
 Toronto, Ontario M5K 1N2 
 Attention: Stephen J. Donovan 
 Telecopier number: (416) 865-7380 
  

	 	(b)	if to the Purchaser: 

 Esterline Technologies Corporation

 500 108th Avenue NE, Ste. 1500 
 Bellevue, WA 98004 
 Attention: Steven Larson 
 Telecopier number: (425) 453-2916 
  

 [  *  ] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the Commission. 

 - 107 - 
  

 with a copy (which shall not constitute notice) to Purchaser’s Counsel at: 
 Perkins Coie LLP 
 1201 3rd Avenue, 40th Floor 
 Seattle, WA 98101 
 Attention: Andrew Bor and Troy Hickman 
 Telecopier number: (206) 359-9000 
 Notwithstanding the foregoing, any notice or other communication required or permitted to be given by any party pursuant to or in connection with any arbitration
procedures contained herein or in any Schedule hereto may only be delivered by hand. 
  

	10.7	Construction 

 The parties hereto agree that this
Agreement is the product of negotiations among sophisticated parties, each of whom was represented by counsel, and each of whom had an opportunity to participate in, and did participate in (whether directly or, in the case of the Other Vendors,
through the ONCAP Parties), the drafting of each provision hereof. Accordingly, ambiguities in this Agreement, if any, shall not be construed strictly or in favour of or against any party hereto but rather shall be given a fair and reasonable
construction without regard to the rule of contra proferentem. 
  

	10.8	Time of Essence 

 Time is of the essence of this
Agreement. 
  

	10.9	Further Assurances 

 Each of the parties hereto
shall promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts, documents and things as the other party hereto may reasonably require from time to time for the purpose of giving effect to this
Agreement and shall use reasonable efforts and take all such steps as may be reasonably within its power to implement to their full extent the provisions of this Agreement. 
  

	10.10	Counterparts 

 This Agreement may be signed in
counterparts and each of such counterparts shall constitute an original document and such counterparts, taken together, shall constitute one and the same instrument. 
  

 [  *  ] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the Commission. 

 - 108 - 
  

 IN WITNESS WHEREOF the parties hereto have executed this Agreement. 
  

			
	 ONCAP L.P., by its general partner,
 ONCAP Investment Partners L.P.,
 by its general partner,
 ONCAP Investment Partners Inc.

		
	By:	 	
		 	 
		
	By:	 	/s/ DONALD LEWTAS
		 	 
	
	 ONCAP (Cayman) L.P., by its general partner,
 ONCAP Investment Partners (Cayman) L.P.,
 by its general partner,
 ONCAP Investment Partners (Cayman) Inc.

		
	By:	 	/s/ DONALD GALES
		 	 
		
	By:	 	
		 	 
	
	ONEX CORPORATION
		
	By:	 	/s/ DONALD LEWTAS
		 	 
		
	By:	 	/s/ ANDREW SHEINER
		 	 
	
	CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
		
	By:	 	/s/ [Illegible]
		 	 
		
	By:	 	/s/ [Illegible]
		 	 

  

 [  *  ] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the Commission. 

 - 109 - 
  

			
	/s/ JEAN-PIERRE MORTREUX
	 
	JEAN-PIERRE MORTREUX
	
	/s/ JEAN-DENIS ROY
	 
	JEAN-DENIS ROY
	
	/s/ JAMES WIMMERS
	 
	JAMES WIMMERS
	
	/s/ GREGORY A. YELDON
	 
	GREGORY A. YELDON
	
	CSP EQUITY PARTNERS XXI, INC.
		
	By:	 	/s/ BRAD MESLIN
		 	 
		
	By:	 	
		 	 
	
	GENERAL ELECTRIC CAPITAL CORPORATION
		
	By:	 	/s/ [Illegible]
		 	 
		
	By:	 	Duly Authorized Signatory
	
	THE BANK OF NOVA SCOTIA
		
	By:	 	/s/ JEAN HOPKINS
		 	 
		
	By:	 	/s/ ROB LOCKIE
		 	 

  

 [  *  ] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the Commission. 

 - 110 - 
  

			
	MG STRATUM FUND II, LIMITED PARTNERSHIP, by its General Partner McKenna Gale Management II Ltd.
		
	By:	 	/s/ [Illegible]
		 	 
		
	By:	 	/s/ [Illegible]
		 	 

  

 [  *  ] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the Commission. 

 - 111 - 

			
	JEAN-PIERRE MORTREUX, in his capacity as Designated Representative (as such term is defined in the Corporation’s USA)
		
	By:	 	/s/ JEAN-PIERRE MORTREUX
		 	 
	
	CMC ELECTRONICS AURORA INC.
		
	By:	 	/s/ GREGORY YELDON
		 	 
		
	By:	 	/s/ JEAN-DENIS ROY
		 	 
	
	CMC ELECTRONICS HOLDINGS INC.
		
	By:	 	/s/ GREGORY YELDON
		 	 
		
	By:	 	/s/ JEAN-DENIS ROY
		 	 
	
	CMC ELECTRONICS INC.
		
	By:	 	/s/ GREGORY YELDON
		 	 
		
	By:	 	/s/ JEAN-DENIS ROY
		 	 
	
	ESTERLINE TECHNOLOGIES CORPORATION
		
	By:	 	/s/ ROBERT W. CREMIN
		 	 
		
	By:	 	/s/ ROBERT D. GEORGE
		 	 

  

 [  *  ] designates portions of this document that have been omitted pursuant to a request for
confidential treatment filed separately with the Commission.Purchase Agreement dated as of February 22, 2007

 EXECUTION VERSION 
 EXHIBIT 10.46 
 Esterline Technologies Corporation 
 $175,000,000 
 6 5/8% Senior Notes due 2017 
 PURCHASE AGREEMENT 
  
 February 22, 2007

 Wachovia Securities 
 Banc of America Securities LLC

 KeyBanc Capital Markets, a division 
 of McDonald Investments
Inc. 
 Wells Fargo Securities, LLC 
 c/o Wachovia Capital
Markets, LLC 
 One Wachovia Center 
 301 South College Street

 Charlotte, North Carolina  28288 
 Ladies and
Gentlemen: 
 Esterline Technologies Corporation, a Delaware corporation (the “Company”), and the Company’s domestic
and other subsidiaries listed on Schedule 1 hereto (the “Guarantors”) confirm their agreement with Wachovia Capital Markets, LLC, Banc of America Securities LLC, KeyBanc Capital Markets, a division of McDonald Investments
Inc. and Wells Fargo Securities, LLC (collectively, the “Initial Purchasers”) on the terms set forth herein. 
 1.        Notes.    The Company proposes to issue and sell to the Initial Purchasers $175,000,000 principal amount of its 6 5/8% Senior Notes due 2017 (the “Notes”), guaranteed on a senior basis by the Guarantors (the “Note Guarantees”). The Notes
are to be issued under an indenture (the “Indenture”) to be dated as of the Closing Date (as defined in Section 3 hereof) among the Company, the Guarantors and Wells Fargo Bank, National Association, as trustee (the
“Trustee”). This Agreement, the Registration Rights Agreement, to be dated the Closing Date, among the Initial Purchasers, the Company and the Guarantors (the “Registration Rights Agreement”), and the Indenture are
hereinafter collectively referred to as the “Operative Documents” and the execution and delivery of the Operative Documents and the transactions contemplated herein and therein are hereinafter referred to as the
“Offering.” 
 The offer and sale of the Notes to the Initial Purchasers will be made without registration of the
Notes (and the Note Guarantees) under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon certain exemptions from the registration requirements of the Securi- 

 
ties Act. The Initial Purchasers have advised the Company and the Guarantors that they will offer and sell the Notes purchased by them hereunder in
accordance with Section 4 hereof and the Final Memorandum (as defined below) as soon as they deem advisable. 
 In connection with the
sale of the Notes, the Company has prepared a preliminary offering memorandum, dated February 16, 2007 (the “Preliminary Memorandum”), the Offering Memorandum (as defined below) and a Final Memorandum (as defined below), dated
the date hereof. The Final Memorandum, the Preliminary Memorandum and the Offering Memorandum are referred to herein as a “Memorandum.” Each Memorandum sets forth certain information concerning the Company, the Notes and the
Operative Documents. The Company hereby confirms that it has authorized the use of the Preliminary Memorandum and the Offering Memorandum, and any amendment or supplement thereto, in connection with the offer and sale of the Notes by the Initial
Purchasers. As used herein, the term “Memorandum” shall include in each case the documents incorporated by reference therein. The terms “supplement,” “amendment” and “amend” as used herein with respect to a
Memorandum shall include all documents deemed to be incorporated by reference in the Preliminary Memorandum, the Offering Memorandum or the Final Memorandum that are filed with the Securities and Exchange Commission (the
“Commission”) pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), prior to the Time of Sale (as defined below). Unless stated to the contrary, all references herein to the Offering
Memorandum are to the Offering Memorandum as of the date hereof (the “Execution Date”) and are not meant to include any amendment or supplement, or any information incorporated by reference therein, subsequent to the Execution Date.

 Prior to the time when the sales of the Notes were first made (the “Time of Sale”), the Company has prepared and
delivered to the Initial Purchasers a pricing supplement (the “Pricing Supplement”) dated February 22, 2007. The Pricing Supplement together with the Preliminary Memorandum is referred to herein as the “Offering
Memorandum.” 
 Promptly after the Time of Sale and in any event no later than the second Business Day following the Time of Sale,
the Company will prepare and deliver to each Initial Purchaser a final offering memorandum (the “Final Memorandum”), which will consist of the Preliminary Memorandum with such changes therein as are required to reflect the
information contained in the Pricing Supplement, and from and after the time such Final Memorandum is delivered to the Initial Purchasers, all references herein to the Offering Memorandum shall be deemed to be a reference to both the Offering
Memorandum and the Final Memorandum. 
 2.      Representations and Warranties of the Company and the
Guarantors.  The Company and the Guarantors jointly and severally represent and warrant to, and agree with, the Initial Purchasers that: 
  

	 	(a)	 The Preliminary Memorandum, at the date thereof, did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. The recorded electronic road show made available to investors, as posted on Bloomberg.net on February 16, 2007 (the “Recorded Road
Show”) when taken together with the Offering Memorandum did not at the Time of Sale, and at the Closing Date will not, and the Final Memorandum, at the date hereof, 

  

 -2- 

	 	 
does not and at the Closing Date will not (and any amendment or supplement thereto, at the date thereof and at the Closing Date, will not), contain any
untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no
representations or warranties as to the information contained in or omitted from the Recorded Road Show or any Memorandum (and any amendment or supplement thereto) in reliance upon and in conformity with information furnished in writing to the
Company by or on behalf of the Initial Purchasers specifically for inclusion therein, as specified in Section 12. 

  

	 	(b)	Each of the Company and its subsidiaries is duly organized and is in good standing under the laws of the jurisdiction in which it is chartered or organized and is duly qualified to
do business as a foreign corporation under the laws of each jurisdiction which requires such qualification wherein it owns or leases material properties or conducts material business, except in such jurisdictions in which the failure to be so
incorporated or organized and validly existing or to so qualify, in the aggregate, would not have a Material Adverse Effect. As used in this Agreement, the term “Material Adverse Effect” shall mean a material adverse change in or
effect on the business, condition (financial or otherwise), properties, net worth, results of operations or prospects, whether or not in the ordinary course of business, of the Company, the Guarantors and their subsidiaries, considered as one
enterprise. 

  

	 	(c)	Each of the Company and its subsidiaries has full power (corporate and other) to own or lease their respective properties and conduct their respective businesses as described in the
Offering Memorandum; and each of the Company and the Guarantors has full power (corporate and other) to enter into the Operative Documents and to carry out all the terms and provisions hereof and thereof to be carried out by it.

  

	 	(d)	The Company has an authorized, issued and outstanding capitalization as set forth in the Offering Memorandum. 

  

	 	(e)	The issued shares of capital stock of each of the Company’s subsidiaries have been duly authorized and validly issued, are fully paid and nonassessable and, except as described
in the Offering Memorandum, are (i) owned of record and beneficially by the Company, either directly or through wholly-owned subsidiaries, and (ii) except as provided by, arising under or related to the Credit Agreement dated as of
June 11, 2003, as amended, among the Company, the subsidiary guarantors named therein, Wachovia Investors, Inc., as Administrative Agent and Arranger, and the other lenders named therein (the “Credit Agreement”), are free and
clear of any pledge, lien, encumbrance, security interest, restriction on voting or transfer, preemptive rights or other defect in title or any claim of any third party or that would have a Material Adverse Effect. 

  

 -3- 

	 	(f)	No subsidiary of the Company is prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such subsidiary’s capital
stock, from repaying to the Company any loans or advances to such subsidiary from the Company or from transferring any of such subsidiary’s property or assets to the Company or any other subsidiary of the Company, except as provided by
applicable laws or regulations, by the Indenture, the Indenture relating to the Company’s 7.75% Senior Subordinated Notes due 2013, dated as of June 11, 2003 (the “2003 Indenture”) or the Credit Agreement, or as described
in or contemplated by the Offering Memorandum. 

  

	 	(g)	Ernst & Young LLP, who has certified the financial statements and supporting schedules included in the Offering Memorandum and delivered its reports with respect thereto,
is an independent registered public accounting firm with respect to the Company and the Guarantors within the meaning of the Securities Act and the applicable rules and regulations thereunder. 

  

	 	(h)	The consolidated financial statements (including the notes thereto) and schedules of the Company included in the Offering Memorandum fairly present in all material respects the
financial position of the Company and its subsidiaries on a consolidated basis and their results of operations as of the dates and for the periods specified therein; since the date of the latest of such financial statements, there has been no change
nor any development or event involving a prospective change which has had or could reasonably be expected to have a Material Adverse Effect; such financial statements and schedules have been prepared in accordance with generally accepted accounting
principles consistently applied throughout the periods involved (except as otherwise expressly noted in the notes thereto or elsewhere in the Offering Memorandum); and the other financial and statistical information and data included in the Offering
Memorandum are accurately presented and prepared on a basis consistent with such financial statements and the books and records of the Company and its subsidiaries. 

  

	 	(i)	Each of the Company and its subsidiaries maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset
accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. 

  

	 	(j)	 The Operative Documents have been, or will be, duly authorized by all necessary corporate action of the Company and, to the extent each is a party thereto, the
Guarantors and, when duly executed and delivered by the Company and the Guarantors and by the other parties thereto, will constitute legal, valid and binding obligations of the Company and the Guarantors (to the extent each is a party thereto),
enforceable against the Company and the Guarantors in accordance with 

  

 -4- 

	 	 
their terms, except as the enforcement thereof may be limited to bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent
transfers), reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally and except as enforcement thereof is subject to general principles of equity, and except as rights to indemnity and contribution may be
limited by federal or state law. 

  

	 	(k)	The Indenture conforms in all material respects to the requirements of the Trust Indenture Act of 1939, as amended (the “TIA”), and to the rules and regulations of
the Commission applicable to an indenture that is qualified thereunder. 

  

	 	(l)	The Notes and the Note Guarantees have been, or will be, duly authorized by all necessary corporate action for issuance and sale pursuant to this Agreement and, when executed,
authenticated, issued and delivered in the manner provided for in the Indenture and sold and paid for as provided in this Agreement, the Notes and the Note Guarantees will constitute legal, valid and binding obligations of the Company and the
Guarantors entitled to the benefits of the Indenture and enforceable against the Company and the Guarantors in accordance with their terms and the terms of the Indenture, except as the enforcement thereof may be limited to bankruptcy, insolvency
(including, without limitation, all laws relating to fraudulent transfers), reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally and except as enforcement thereof is subject to general principles of
equity. 

  

	 	(m)	The issuance, offering and sale of the Notes to the Initial Purchasers by the Company pursuant to this Agreement and the compliance by the Company and, to the extent each is a party
thereto, the Guarantors with the other provisions of the Operative Documents herein and therein set forth do not (i) require the consent, approval, authorization, order, registration or qualification of, or filing with, any governmental
authority or court, or body or arbitrator having jurisdiction over each of the Company and its subsidiaries, except for any consent, approval, authorization, order, registration, qualification or filing, of which the failure to obtain or make would
not result in a Material Adverse Effect, or (ii) conflict with, result in a breach or violation of, or constitute a default under, any indenture, note purchase agreement, credit agreement, mortgage, deed of trust or loan agreement, or material
agreement or material instrument to which any of the Company or its subsidiaries is a party or by which any of the Company or its subsidiaries or any of their respective properties is bound, except for any breaches, violations or defaults which
individually or in the aggregate would not result in a Material Adverse Effect, or with the charter or by-laws of any of the Company or its subsidiaries, or any statute, rule or regulation or any judgment, order or decree of any governmental
authority or court or any arbitrator applicable to any of the Company or its subsidiaries, except for any statute, rule or regulation or any judgment, order or decree of any governmental authority or court or any arbitrator the noncompliance with
which would not result in a Material Adverse Effect or adversely affect the offering, issuance and sale of the Notes. 

  

 -5- 

	 	(n)	No legal or governmental proceedings or investigations are pending or threatened to which any of the Company or its subsidiaries is a party or to which any of their property is
subject that are not described in the Offering Memorandum, except for such proceedings or investigations that, if the subject of an unfavorable decision, ruling or finding, would not, individually or in the aggregate, result in a Material Adverse
Effect. 

  

	 	(o)	No relationship, direct or indirect, exists between or among the Company or any of its subsidiaries, on the one hand, and the directors, officers, shareholders, customers or
suppliers of the Company or any of its subsidiaries on the other hand, that would be required by the Securities Act to be described in a prospectus were the Notes being issued and sold in a public offering, that is not described in the Offering
Memorandum. 

  

	 	(p)	None of the Company or the Guarantors is now nor after giving effect to the issuance of the Notes and the execution, delivery and performance of the Operative Documents and the
consummation of the Offering, will be (i) insolvent, (ii) left with unreasonably small capital with which to engage in its anticipated businesses or (iii) incurring debts or other obligations beyond its ability to pay such debts or
obligations as they become due. 

  

	 	(q)	None of the Company or the Guarantors has distributed nor, prior to the later of (i) the Closing Date and (ii) the completion of the distribution of the Notes, will
distribute any offering material in connection with the offering and sale of the Notes other than the Preliminary Memorandum, the Offering Memorandum or any amendment or supplement thereto, the Recorded Road Show and any materials used in connection
with the roadshow, except, if at all, such as would not require registration of the Notes or be deemed a “general solicitation” under the Securities Act and has been previously delivered and agreed to by the Initial Purchasers.

  

	 	(r)	Each of the Company and its subsidiaries has good and marketable title in fee simple to all items of real property and marketable title to all personal property owned by each of
them, in each case except as set forth in the Offering Memorandum, free and clear of any pledge, lien, encumbrance, security interest or other defect or claim of any third party, except such as do not or would not have a Material Adverse Effect and
except as provided by, arising under or related to the Credit Agreement. Any real property leased by each of the Company and subsidiaries is held under valid, subsisting and enforceable leases, with such exceptions as do not have a Material Adverse
Effect. 

  

	 	(s)	 No non-exempt “prohibited transaction” (as defined in Section 406 of the Employee Retirement Income Security Act of 1974, as amended, including the
regulations and published interpretations thereunder (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”)) or “accumulated funding deficiency” (as
defined in Section 302 of ERISA) or any of the events set forth in Section 4043(c) of ERISA (other than events with re- 

  

 -6- 

	 	 
spect to which the 30-day notice requirement under Section 4043 of ERISA has been waived) has occurred, exists or is reasonably expected to occur with
respect to any employee benefit plan (as defined in Section 3(3) of ERISA) that the Company or any of its subsidiaries maintains, contributes to or has any obligation to contribute to, or with respect to which any of the Company or its
subsidiaries has any liability, direct or indirect, contingent or otherwise (a “Plan”) which would have a Material Adverse Effect; each Plan is in compliance in all material respects with applicable law, including ERISA and the
Code, except for such noncompliance as would not have a Material Adverse Effect; the Company or its subsidiaries have not incurred and do not expect to incur liability under Title IV of ERISA with respect to the termination of, or withdrawal from,
any Plan, except, if at all, as would not cause a Material Adverse Effect; and each Plan that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by action or
failure to act, which could reasonably be expected to cause the loss of such qualification. No labor dispute with the employees of the Company or any of its subsidiaries exists or, to the Company’s knowledge, is threatened or imminent which
could result in a Material Adverse Effect. 

  

	 	(t)	Except as described or contemplated in the Offering Memorandum, no proceeding looking toward merger, consolidation, liquidation or dissolution of the Company or the Guarantors, or
the sale of all or substantially all of the assets of the Company or the Guarantors or any of their direct or indirect subsidiaries is pending or contemplated. 

  

	 	(u)	Each of the Company and its subsidiaries owns or otherwise possesses adequate rights to use all material patents, trademarks, service marks, trade names and copyrights, licenses,
all applications and registrations for each of the foregoing, and all other material proprietary rights and confidential information necessary to conduct their respective businesses as currently conducted, except if such failure to own or otherwise
possess would result in a Material Adverse Effect; and none of the Company or its subsidiaries has received any notice, or is otherwise aware, of any infringement of or conflict with the rights of any third party with respect to any of the foregoing
which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Material Adverse Effect. 

  

	 	(v)	Each of the Company and its subsidiaries is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts and with such deductibles as
are prudent in the businesses in which they are engaged, except where the failure to have such would not have a Material Adverse Effect; and none of the Company or its subsidiaries has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 

  

	 	(w)	 Each of the Company and its subsidiaries possesses all certificates, authorizations and permits issued by the appropriate original equipment manufacturers, federal,

  

 -7- 

	 	 
state or foreign regulatory authorities (including but not limited to the U.S. Federal Aviation Administration) necessary to conduct their respective
businesses, except where the failure to have such would not have a Material Adverse Effect, and none of the Company or its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such certificate,
authorization or permit which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Material Adverse Effect. 

  

	 	(x)	Environmental Matters: 

  

	 	(i)	Each of the Company and its subsidiaries is and has been in compliance with all applicable laws, statutes, ordinances, rules, regulations, orders, judgments, decisions, decrees,
standards and requirements (“Legal Requirements”) relating to: human health and safety; pollution; management, disposal or release of any chemical substance, product or waste; and protection, cleanup, remediation or corrective
action relating to the environment or natural resources (“Environmental Law”); 

  

	 	(ii)	Each of the Company and its subsidiaries has obtained and is in compliance with the conditions of all permits, authorizations, licenses, approvals and variances necessary under any
Environmental Law for the continued conduct in the manner now conducted of the business of each of the Company and its subsidiaries (“Environmental Permits”); 

  

	 	(iii)	There are no past or present conditions or circumstances, including but not limited to pending changes in any Environmental Law or Environmental Permits, that are reasonably likely
to interfere with the conduct of the business of each of the Company and its subsidiaries in the manner now conducted or which would interfere with compliance with any Environmental Law or Environmental Permits; and 

  

	 	(iv)	There are no past or present conditions or circumstances at, or arising out of, the business, assets and properties of each of the Company and its subsidiaries or any businesses,
assets or properties formerly leased, operated or owned by each of the Company and its subsidiaries, including but not limited to on-site or off-site disposal or release of any chemical substance, product or waste, which could reasonably be expected
to give rise to: (i) liabilities or obligations for any cleanup, remediation or corrective action under any Environmental Law; (ii) claims arising under any Environmental Law for personal injury, property damage, or damage to natural
resources; (iii) liabilities or obligations incurred by any of the Company and its subsidiaries to comply with any Environmental Law; or (iv) fines or penalties arising under any Environmental Law; 

 except in each case for any noncompliance or condition or circumstance that, individually or in the aggregate, would not result in a Material Adverse
Effect or that is described in the Offering Memorandum. 
  

 -8- 

	 	(y)	No default exists, and no event has occurred that, with notice or lapse of time or both, would constitute a default in the due performance and observation of any term, covenant or
condition of any indenture, mortgage, deed of trust, lease or other agreement or instrument to which each of the Company and its subsidiaries is a party or by which the Company or its subsidiaries, or any of their respective properties, is bound
which would have or which, after notice or lapse of time or both, would have a Material Adverse Effect. 

  

	 	(z)	Each of the Company and its subsidiaries has filed all foreign, federal, state and local tax returns that are required to be filed or have requested extensions thereof and have paid
all taxes required to be paid by them and any other assessment, fine or penalty levied against them, to the extent that any of the foregoing is due and payable, except for any such assessment, fine or penalty that is currently being contested in
good faith and for which the Company retains adequate reserves and except in each case for any noncompliance that, individually or in the aggregate, would not result in a Material Adverse Effect. 

  

	 	(aa)	None of the Company or the Guarantors, nor after giving effect to the sale of the Notes and the application of the proceeds thereof as described in the Offering Memorandum, will be
an “investment company,” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended (the “Investment Company Act”).

  

	 	(bb)	None of the Company, the Guarantors, any of their Affiliates (as defined in Rule 501(b) of Regulation D under the Securities Act (“Regulation D”)), and any
person acting on its or their behalf (other than the Initial Purchasers and their agents, as to which the Company makes no representation or warranty) has, directly or indirectly, made offers or sales of any security, or solicited offers to buy any
security, under circumstances that would require the registration of the Notes under the Securities Act. 

  

	 	(cc)	None of the Company, the Guarantors, any of their Affiliates and any person acting on its or their behalf (other than the Initial Purchasers and their agents, as to which the
Company makes no representation or warranty) has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with any offer or sale of the Notes in the United States.

  

	 	(dd)	None of the Company, the Guarantors, any of their Affiliates and any person acting on its or their behalf (other than the Initial Purchasers and their agents, as to which the
Company makes no representation or warranty) has engaged in any directed selling efforts with respect to the Notes, and each of them has complied with the offering restrictions requirement of Regulation S under the Securities Act
(“Regulation S”). Terms used in this paragraph have the meanings given to them by Regulation S. 

  

	 	(ee)	 None of the Company, the Guarantors and any of their Affiliates has taken, directly or indirectly, any action designed to cause or result in, or which has consti-

  

 -9- 

	 	 
tuted or which might reasonably be expected to cause or result in, stabilization or manipulation of the price of any security of the Company or the
Guarantors to facilitate the sale or resale of the Notes; nor has the Company, the Guarantors or any of their Affiliates paid or agreed to pay to any person any compensation for soliciting another to purchase any securities of the Company or the
Guarantors (except as contemplated by this Agreement). 

  

	 	(ff)	The Notes satisfy the eligibility requirements of Rule 144A(d)(3) under the Securities Act. 

  

	 	(gg)	Assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 4 hereof and compliance by the Initial Purchasers with the procedures set forth
in Section 4 hereof, it is not necessary, in connection with the offer, sale and delivery of the Notes to the Initial Purchasers in the manner contemplated by this Agreement and disclosed in each Memorandum, to register any of the Notes or the
Note Guarantees under the Securities Act or to qualify the Indenture under the Trust Indenture Act. 

  

	 	(hh)	Listed on Schedule 1 attached hereto are all the Company’s domestic subsidiaries. 

  

	 	(ii)	None of the Company, or, to the knowledge of the Company, any subsidiary, director, officer, agent, employee or Affiliate of the Company or any of its subsidiaries is aware of or
has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without
limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give or
authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the
FCPA; and the Company, and, to the knowledge of the Company, its subsidiaries and Affiliates have conducted their businesses in compliance with the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are
reasonably expected to continue to ensure, continued compliance therewith. 

  

	 	(jj)	The operations of the Company, and, to the knowledge of the Company, its subsidiaries, are and have been conducted at all times in compliance with applicable financial recordkeeping
and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the PATRIOT Act, the rules and regulations thereunder, and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or
any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened. 

  

 -10- 

	 	(kk)	None of the Company, or, to the knowledge of the Company, any subsidiary, director, officer, agent, employee or Affiliate of the Company or any of its subsidiaries is currently
subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company will not directly or indirectly use the proceeds of the Offering, or lend,
contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.

 Each certificate signed by any officer of the Company or the Guarantors and delivered to the Initial Purchasers or their
counsel shall be deemed to be a representation and warranty by the Company or the Guarantors, as the case may be, to the Initial Purchasers as to the matters covered thereby. 
 3.      Purchase, Sale and Delivery of the Notes.  On the basis of the representations, warranties,
agreements and covenants herein contained and subject to the terms and conditions herein set forth, the Company agrees to issue and sell, and the Initial Purchasers agree severally to purchase from the Company, $175,000,000 aggregate principal
amount of Notes at a purchase price equal to 98.25% of the principal amount thereof set forth opposite such Initial Purchasers name on Schedule A hereto. One or more certificates in definitive form or global form, as instructed by the Initial
Purchasers, for the Notes that the Initial Purchasers have agreed to purchase hereunder, and in such denomination or denominations and registered in such name or names as the Initial Purchasers request upon notice to the Company at least 48 hours
prior to the Closing Date, shall be delivered by or on behalf of the Company to the Initial Purchasers for the account of the Initial Purchasers, against payment by or on behalf of the Initial Purchasers of the purchase price therefor by wire
transfer in same-day funds to the account of the Company. Such delivery of and payment for the Notes shall be made at 10:00 A.M., New York City time, on March 1, 2007, or at such other time or date as the Initial Purchasers and the Company may
agree upon, such time and date of delivery against payment being herein referred to as the “Closing Date.” The Company will make such certificate or certificates for the Notes available for checking by the Initial Purchasers at the New
York offices of Cahill Gordon & Reindel LLP (“Counsel for the Initial Purchasers”) at least 24 hours prior to the Closing Date. 
 4.      Offering of the Notes and the Initial Purchasers’ Representations and Warranties.  Each of the Initial Purchasers represents and warrants to, and agrees
with, the Company that: 
  

	 	(a)	It is an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act). 

  

	 	(b)	 It (and any person acting on its behalf) has not offered or sold, and it (and any person acting on its behalf) will not offer or sell, any Notes except (i) to
those it reasonably believes to be qualified institutional buyers (as defined in Rule 144A under the Securities Act) (“QIBs”) in transactions meeting the requirements of Rule 144A, or (ii) in accordance with the
restrictions set forth in Regulation S. In connection with each sale pursuant to clause (i) above, each of the Initial Purchasers (and any person acting on its behalf) has taken or will take reasonable steps to 

  

 -11- 

	 	 
ensure that the purchaser of such Notes is aware that such sale is being made in reliance upon Rule 144A. 

  

	 	(c)	Neither it nor any person acting on its behalf has made or will make offers or sales of the Notes other than in accordance with Rule 144A or Regulation S and therefore not by means
of any form of general solicitation or general advertising (within the meaning of Regulation D). 

  

	 	(d)	At or prior to the confirmation of any sale of any Notes sold in reliance on Regulation S, it (and any person acting on its behalf) will have sent to each distributor, dealer or
other person receiving a selling concession, fee or other remuneration that purchases Notes from it during the restricted period (as defined in Regulation S) a confirmation or notice substantially to the following effect: 

“The Notes covered hereby have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may
not be offered or sold within the United States, or to or for the account or benefit of U.S. persons, (i) as part of their distribution at any time; or (ii) otherwise until 40 days after the later of the commencement of the offering of the
Notes and February 22, 2007, except in either case in accordance with Regulation S or Rule 144A under the Securities Act. Terms used above have the meanings given to them by Regulation S.” 
 5.      Covenants of the Company and the Guarantors.  The Company and the Guarantors, jointly and
severally, covenant and agree with the Initial Purchasers that: 
  

	 	(a)	The Company will furnish to the Initial Purchasers and to Counsel for the Initial Purchasers concurrently with the Time of Sale and during the period referred to in paragraph
(c) below, without charge, as many copies of the Offering Memorandum and any amendments and supplements thereto as they reasonably may request. The Company will pay the expenses of printing or other production of all documents relating to the
offering of the Notes and will reimburse the Initial Purchasers for payment of the required PORTAL (as defined below) filing fee. 

  

	 	(b)	The Company will not amend or supplement the Offering Memorandum or the Final Memorandum including by filing documents under the Exchange Act which are incorporated by reference
therein prior to the completion of the distribution of the Notes by the Initial Purchasers without the prior written consent of the Initial Purchasers, which consent will not be unreasonably withheld. 

  

	 	(c)	 At any time prior to the completion of the distribution of the Notes by the Initial Purchasers, if any event occurs as a result of which the Offering Memorandum, as
then amended or supplemented, or the Recorded Road Show (taken together with the Offering Memorandum) would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, or if it should be necessary to amend or supplement the Offering Memorandum or the Recorded Road Show (taken together with the Offering Memorandum) to comply with ap- 

  

 -12- 

	 	 
plicable law, the Company will promptly (i) notify the Initial Purchasers of the same; (ii) subject to the requirements of paragraph (b) of
this Section 5, prepare and provide to the Initial Purchasers pursuant to paragraph (a) of this Section 5, an amendment or supplement that will correct such statement or omission or effect such compliance; and (iii) supply any
supplemented or amended Offering Memorandum to the Initial Purchasers and Counsel for the Initial Purchasers, without charge in such quantities as may be reasonably requested. 

  

	 	(d)	The Company will (i) qualify the Notes and the Note Guarantees for sale by the Initial Purchasers under the laws of such jurisdictions as the Initial Purchasers may designate
and (ii) will maintain such qualifications for so long as required for the sale of the Notes by the Initial Purchasers; provided that the Company will not be required to qualify to do business in any jurisdiction in which it is not then
so qualified, to file any general consent to service of process or to take any other action which would subject it to general service of process or to taxation in any such jurisdiction where it is not then so subject. The Company will promptly
advise the Initial Purchasers of the receipt by the Company of any notification with respect to the suspension of the qualification of the Notes for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose.

  

	 	(e)	At any time prior to the completion of the distribution of the Notes by the Initial Purchasers, the Company, whenever it, the Guarantors or any of their subsidiaries publishes or
makes available to the public (by filing with any regulatory authority or securities exchange or by publishing a press release or otherwise) any information that would reasonably be expected to be material in the context of the issuance of the Notes
under this Agreement, shall promptly notify the Initial Purchasers as to the nature of such information or event. The Company will likewise notify the Initial Purchasers of (i) any decrease in the rating of the Notes or any other debt
securities of the Company by any nationally recognized statistical rating organization (as defined in Rule 436(g)(2) under the Securities Act) or (ii) any notice or public announcement given of any intended or potential decrease in any
such rating or that any such securities rating agency has under surveillance or review, with possible negative implications, its rating of the Notes or such other debt securities, as soon as practicable after the Company becomes aware of any such
decrease, notice or public announcement. For so long as the Notes are outstanding, the Company will also deliver to the Initial Purchasers, as soon as available and without request, copies of its yearly and quarterly filings under the Exchange Act.

  

	 	(f)	The Company will not, and will not permit any of its Affiliates to, resell any of the Notes that have been acquired by any of them, other than pursuant to an effective registration
statement under the Securities Act or in accordance with Rule 144 under the Securities Act. 

  

	 	(g)	 Except as contemplated in the Registration Rights Agreement, none of the Company or any of its Affiliates, nor any person acting on its or their behalf (other than
the Initial Purchasers or any of their respective Affiliates, as to whom the 

  

 -13- 

	 	 
Company makes no covenant) will, directly or indirectly, make offers or sales of any security, or solicit offers to buy any security, under circumstances
that would require the registration of the Notes under the Securities Act. 

  

	 	(h)	None of the Company or any of its Affiliates, nor any person acting on its or their behalf (other than the Initial Purchasers or any of their respective Affiliates, as to whom the
Company makes no covenant), will engage in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with any offer or sale of the Notes. 

  

	 	(i)	So long as any of the Notes are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, at any time that the Company is not then subject to
Section 13 or 15(d) of the Exchange Act, the Company will provide at its expense to each holder of the Notes and to each prospective purchaser (as designated by such holder) of the Notes, upon the request of such holder or prospective purchaser
in connection with a sale of the Notes, any information required to be provided by Rule 144A(d)(4) under the Securities Act. (This covenant is intended to be for the benefit of the holders, and the prospective purchasers designated by such holders
from time to time, of the Notes.) 

  

	 	(j)	The Company will use its best efforts to cause the Notes to be designated Private Offerings, Resales and Trading through Automated Linkages (“PORTAL”) market
securities in accordance with the rules and regulations adopted by the National Association of Securities Dealers, Inc. relating to trading in PORTAL and to be eligible for clearance and settlement through DTC. 

  

	 	(k)	The Company will apply the net proceeds from the sale of the Notes as set forth under “Use of Proceeds” in the Offering Memorandum. 

  

	 	(l)	Until completion of the distribution, neither the Company nor any of its Affiliates will take, directly or indirectly, any action designed to cause or result in, or which has
constituted or which might reasonably be expected to cause or result in, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Notes. 

  

	 	(m)	For so long as any Notes are outstanding, each of the Company, the Guarantors and their subsidiaries will conduct its operations in a manner that will not subject the Company, the
Guarantors or any such subsidiary to registration as an investment company under the Investment Company Act. 

  

	 	(n)	Neither the Company nor any of its Affiliates, nor any person acting on its or their behalf (other than the Initial Purchasers or their agents, as to which the Company makes no
covenant) will engage in any directed selling efforts with respect to the Notes, and each of them will comply with the offering restrictions requirement of Regulation S. Terms used in this paragraph have the meanings given them by Regulation S.

  

 -14- 

	 	(o)	Each Note will bear a legend substantially to the following effect until such legend shall no longer be necessary or advisable because the Notes are no longer subject to the
restrictions on transfer described therein: 

 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF, THE SECURITIES
ACT, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION AND IN ACCORDANCE WITH THE TRANSFER RESTRICTIONS CONTAINED IN THE INDENTURE UNDER WHICH THIS NOTE WAS ISSUED. 
  

	 	(p)	The Company will not, directly or indirectly, offer, sell, contract to sell or otherwise dispose of any debt securities of the Company or warrants to purchase debt securities of the
Company substantially similar to the Notes (other than the Notes offered pursuant to this Agreement) for a period of 180 days after the date hereof, without the prior written consent of Wachovia Capital Markets, LLC. 

  

	 	(q)	The Company acknowledges and agrees that the Initial Purchasers are acting solely in the capacity of an arms length contractual counterparty to the Company with respect to the
offering of the Notes and the Guarantees contemplated hereby (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company or any other person. Additionally, no
Initial Purchaser is advising the Company or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Company shall consult with its own advisors concerning such matters and shall be responsible
for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Initial Purchasers shall have no responsibility or liability to the Company with respect thereto. Any review by the Initial Purchasers of the
Company, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Initial Purchasers and shall not be on behalf of the Company. 

 6.      Expenses.  The Company will pay all costs and expenses (other than counsel fees and disbursements
for the Initial Purchasers, unless specifically provided herein) incident to the performance of the obligations of the Company under this Agreement, whether or not the Offering is consummated or this Agreement is terminated pursuant to
Section 10 hereof, including all costs and expenses incident to (i) the printing or other production of documents with respect to the Offering, including any costs of printing the Preliminary Memorandum and Offering Memorandum and any
amendment or supplement thereto, this Agreement and any blue sky memoranda; (ii) all arrangements relating to the delivery to the Initial Purchasers of copies of the foregoing documents; (iii) the fees and disbursements of the counsel, the
accountants, the Trustee and any other experts or advisors retained by the Company; (iv) preparation, issuance and delivery to the Initial Purchasers of any certificates evidencing the Notes; (v) the qualification of the 

  

 -15- 

 
Notes under state securities and blue sky laws, and the maintenance of such qualifications, including filing fees and reasonable fees and disbursements of
Counsel for the Initial Purchasers relating thereto; (vi) the fees and expenses, if any, incurred in connection with the admission of the Notes for trading in the PORTAL market; (vii) the fees of any agency that rates the Notes; and
(viii) all costs and expenses relating to investor presentations, including any “road show” presentations undertaken in connection with the marketing of the offering of the Notes, including, without limitation, expenses associated
with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations, travel and lodging expenses of the Initial Purchasers and officers of the Company and any such
consultants, and the cost of any aircraft chartered in connection with the road show. If the sale of the Notes provided for herein is not consummated because any condition to the obligations of the Initial Purchasers set forth in Section 7
hereof is not satisfied, because this Agreement is terminated pursuant to Section 10 or because of any failure, refusal or inability on the part of the Company or the Guarantors to perform all obligations and satisfy all conditions on their
part to be performed or satisfied hereunder other than by reason of a default by the Initial Purchasers, the Company will reimburse the Initial Purchasers upon demand for all reasonable out-of-pocket expenses (including counsel fees and
disbursements) that shall have been incurred by it in connection with the proposed purchase and sale of the Notes. The Company shall not in any event be liable to the Initial Purchasers for the loss of anticipated profits from the transactions
covered by this Agreement. 
 7.      Conditions to the Initial Purchasers’
Obligations.  The obligations of the Initial Purchasers to purchase and pay for the Notes shall be subject to the accuracy of the representations and warranties of the Company and the Guarantors in Section 2 hereof, in each case
as of the date hereof and as of the Closing Date, as if made on and as of the Closing Date, to the accuracy of the statements of the officers of the Company and the Guarantors made pursuant to the provisions hereof, to the performance by the Company
and the Guarantors of their covenants and agreements hereunder and to the following additional conditions: 
  

	 	(a)	The Initial Purchasers shall have received an opinion, dated the Closing Date, of Perkins Coie LLP, counsel for the Company and the Guarantors, in form and substance satisfactory to
the Initial Purchasers, to the effect set forth in Exhibit A hereto. 

  

	 	(b)	The Initial Purchasers shall have received an opinion, dated the Closing Date, of Counsel for the Initial Purchasers, with respect to the issuance and sale of the Notes and such
other related matters as the Initial Purchasers may reasonably require, and the Company shall have furnished to such counsel such documents as it may reasonably request for the purpose of enabling it to pass upon such matters.

  

	 	(c)	 The Initial Purchasers shall have received a “comfort letter” from Ernst & Young LLP, the independent public accountant for the Company and the
Guarantors, dated as of the date hereof, addressed to the Initial Purchasers and in form and substance satisfactory to the Initial Purchasers and Counsel for the Initial Purchasers. In addition, the Initial Purchasers shall have received a
“bring-down comfort letter” from Ernst & Young LLP, dated as of the Closing Date, addressed to the Initial Purchasers and in form and substance satisfactory to the Initial Pur- 

  

 -16- 

	 	 
chasers and Counsel for the Initial Purchasers. Each letter shall use a “cut-off date” within three days of the date of such letter and the
procedures shall extend to financial information in the Final Memorandum not contained in the Preliminary Memorandum. References to the Offering Memorandum in this paragraph (c) with respect to either letter referred to above shall include any
amendment or supplement thereto at the date of such letter. 

  

	 	(d)	The Initial Purchasers shall have received a certificate, dated the Closing Date, of the Chief Executive Officer and the Chief Financial Officer of the Company to the effect that:

  

	 	(i)	the representations and warranties of the Company and the Guarantors in this Agreement are true and correct as if made on and as of the Closing Date; the Offering Memorandum
(exclusive of any amendment or supplement after the date hereof) does not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading; and the Company and the Guarantors have, in all material respects, performed all covenants and agreements and satisfied all conditions on their part to be performed or satisfied at or prior to the Closing Date; and

  

	 	(ii)	none of the Company, the Guarantors or any of their subsidiaries has sustained, since the date of the latest audited financial statements included in the Offering Memorandum
(exclusive of any amendment or supplement thereto), any loss or interference with their respective businesses or properties from fire, flood, hurricane, accident or other calamity, whether or not covered by insurance, or from any labor dispute or
any legal or governmental proceeding that is material to the Company and the Guarantors, and there has not been any material adverse change in the business, operations, properties, assets, liabilities, net worth, condition (financial or otherwise)
or prospects of the Company and the Guarantors, except in each case as described in or contemplated by the Offering Memorandum (exclusive of any amendment or supplement thereto). 

  

	 	(e)	The Registration Rights Agreement shall have been executed and delivered by all the parties thereto. 

  

	 	(f)	On or before the Closing Date, the Initial Purchasers and Counsel for the Initial Purchasers shall have received such further certificates, documents or other information as they
may have reasonably requested from the Company and the Guarantors. 

 All opinions, certificates, letters and documents
delivered pursuant to this Agreement will comply with the provisions hereof only if they are reasonably satisfactory to the Initial Purchasers and Counsel for the Initial Purchasers. The Company shall furnish to the Initial Purchasers 

  

 -17- 

 
such conformed copies of such opinions, certificates, letters and documents in such quantities as the Initial Purchasers and Counsel for the Initial
Purchasers shall reasonably request. 
 8.      Indemnification and Contribution. 
  

	 	(a)	The Company and the Guarantors, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers and each person, if any, who controls (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) the Initial Purchasers against any losses, claims, damages or liabilities, joint or several, to which the Initial Purchasers or such controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in
the Preliminary Memorandum, the Offering Memorandum, the Recorded Road Show (when taken together with the Offering Memorandum) or any amendment or supplement thereto; or (ii) the omission or alleged omission to state in the Preliminary
Memorandum, the Offering Memorandum or any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse, as incurred, the Initial Purchasers and each
such controlling person for any legal or other expenses reasonably incurred by the Initial Purchasers or such controlling person in connection with investigating, defending against or appearing as a third-party witness in connection with any such
loss, claim, damage, liability or action; provided, that the Company and the Guarantors will not be liable in any such case to the extent that any 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 any Preliminary Memorandum, the Offering Memorandum or any amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by the Initial
Purchasers specifically for use therein as set forth in Section 12 hereof. The Company and the Guarantors will not, without the prior written consent of the Initial Purchasers, settle or compromise or consent to the entry of any judgment in any
pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not the Initial Purchasers or any person who controls the Initial Purchasers within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act is a party to such claim, action, suit or proceeding) unless such settlement, compromise or consent includes an unconditional release of the Initial Purchasers and such controlling persons from
all liability arising out of such claim, action, suit or proceeding. 

  

	 	(b)	 The Initial Purchasers will indemnify and hold harmless the Company and the Guarantors, their respective directors, officers, and each person, if any, who controls
any of the Company and the Guarantors within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Company, the Guarantors, any such directors or
officers of the Company and the Guarantors or any such controlling person of the Company and the Guarantors may become subject under the Securities Act or 

  

 -18- 

	 	 
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue
statement or alleged untrue statement of any material fact contained in the Preliminary Memorandum, or the Offering Memorandum or any amendment or supplement thereto, or (ii) the omission or the alleged omission to state therein a material fact
required to be stated in the Preliminary Memorandum, or the Offering Memorandum or any amendment or supplement thereto, necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Initial Purchasers specifically for use therein as set forth
in Section 12 hereof, and subject to the limitation set forth immediately preceding this clause, will reimburse as incurred, any legal or other expenses reasonably incurred by the Company or the Guarantors or any such directors or officers or
such controlling person in connection with investigating, defending against or appearing as a third party witness in connection with, any such loss, claim, damage, liability or action in respect thereof. 

  

	 	(c)	 Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in
respect thereof is to be made against an indemnifying party under this Section 8, notify such indemnifying party of the commencement thereof; but the failure so to notify such indemnifying party (i) will not relieve such indemnifying party
from any liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and
(ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above. In case any such action is brought against any
indemnified party, and such indemnified party notifies the relevant indemnifying party of the commencement thereof, such indemnifying party will be entitled to participate therein and, to the extent that it may wish, to assume the defense thereof,
jointly with any other indemnifying party similarly notified, with counsel satisfactory to such indemnified party; provided that if the defendants in any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded, based on advice of outside counsel, that there may be one or more legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the
indemnifying party, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend
such action on behalf of such indemnified party or parties. After notice from an indemnifying party to an indemnified party of its election so to assume the defense thereof and approval by such indemnified party of counsel appointed to defend such
action, such indemnifying party will not be liable to such indemnified party under this Section 8 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with
the defense 

  

 -19- 

	 	 
thereof, unless (i) such indemnified party shall have employed separate counsel in accordance with the proviso to the next preceding sentence or
(ii) such indemnifying party does not promptly retain counsel satisfactory to such indemnified party or (iii) such indemnifying party has authorized the employment of counsel for such indemnified party at the expense of the indemnifying
party. After such notice from an indemnifying party to an indemnified party, such indemnifying party will not be liable for the costs and expenses of any settlement of such action effected by such indemnified party without the consent of such
indemnifying party. 

  

	 	(d)	 In circumstances in which the indemnity agreement provided for in the preceding paragraphs of this Section 8 is unavailable or insufficient, for any reason, to
hold harmless an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect thereof) (“Losses”), the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other, in
order to provide for just and equitable contribution, agree to contribute to the amount paid or payable by such indemnified party as a result of such Losses to which the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the
other, may be subject, in such proportion as is appropriate to reflect (i) the relative benefits received by the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the other, from the offering of the Notes or
(ii) if the allocation provided by the foregoing clause (i) is unavailable for any reason, not only such relative benefits but also the relative fault of the Company and the Guarantors, on the one hand, and the Initial Purchasers, on the
other, in connection with the statements or omissions or alleged statements or omissions that resulted in such Losses. The relative benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers on the other shall be
deemed to be in the same proportion as the total proceeds from the offering (before deducting expenses) received by the Company and the Guarantors bear to the total underwriting discounts and commissions received by the Initial Purchasers from the
Company in connection with the purchase of the Notes hereunder. 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, the Guarantors or the Initial Purchasers, the parties’ intent, relative knowledge, access to information and opportunity to correct or prevent such statement or
omission, and any other equitable considerations appropriate in the circumstances. The Company, the Guarantors and the Initial Purchasers agree that it would not be just and equitable if contribution were determined by pro rata allocation or by any
other method of allocation that does not take into account the equitable considerations referred to above. Notwithstanding any other provision of this paragraph (d), the Initial Purchasers shall not be obligated to make contributions hereunder that
in the aggregate exceed the total underwriting discounts and commissions received by the Initial Purchasers from the Company in connection with the purchase of the Notes hereunder, and 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 the 

  

 -20- 

	 	 
Initial Purchasers within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Initial Purchasers, and each director or officer of the Company or the Guarantors and each person, if any, who controls the Company or the Guarantors within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, shall have the same rights to contribution as the Company or the Guarantors, respectively. 

  

	 	(e)	The obligations of the Company and the Guarantors under this Section 8 shall be in addition to any liability that the Company and the Guarantors may otherwise have and the
obligations of the Initial Purchasers under this Section 8 shall be in addition to any liability that the Initial Purchasers may otherwise have. 

 9.      Survival.  The respective representations, warranties, agreements, covenants, indemnities and other statements of the Company and the Guarantors, their respective
officers, and the Initial Purchasers set forth in this Agreement or made by or on behalf of it pursuant to this Agreement shall remain in full force and effect, regardless of (i) any investigation made by or on behalf of the Company, the
Guarantors, any of their respective officers, directors or subsidiaries or any controlling person referred to in Section 8 hereof or the Initial Purchasers and (ii) delivery of and payment for the Notes. The respective agreements,
covenants, indemnities and other statements set forth in Sections 6 and 8 hereof shall remain in full force and effect, regardless of any termination or cancellation of this Agreement. 
 10.      Termination. 
  

	 	(a)	This Agreement may be terminated in the sole discretion of Wachovia by notice to the Company given at any time at or prior to the Closing Date in the event that the Company or the
Guarantors shall have failed, refused or been unable to perform all obligations and satisfy all conditions on its part to be performed or satisfied hereunder at or prior thereto or if, at or prior to the Closing Date (i) trading in the
Company’s common stock shall have been suspended by the Commission or trading in securities generally on the New York Stock Exchange or the Nasdaq National Market shall have been suspended or minimum or maximum prices shall have been
established on any such exchange or market; (ii) a banking moratorium shall have been declared by New York, North Carolina or United States authorities or there has been a material disruption in securities settlement, payment or clearance
services in the United States; or (iii) there shall have been (A) an outbreak or escalation of hostilities between the United States and any foreign power, (B) an outbreak or escalation of any other insurrection or armed conflict
involving the United States or (C) any other calamity or crisis or material adverse change in general economic, political or financial conditions which has an effect on the U.S. financial markets that, in the sole judgment of Wachovia, makes it
impracticable or inadvisable to proceed with the offer, sale and delivery of the Notes as contemplated by the Preliminary Memorandum or the Offering Memorandum, exclusive of any amendment or supplement thereto. 

  

 -21- 

	 	(b)	Termination of this Agreement pursuant to this Section 10 shall be without liability of any party to any other party except as provided in Section 8 hereof.

 11.    Defaulting Initial Purchasers.  If, on the Closing Date, any Initial Purchaser
defaults in the performance of its obligations under this Agreement, the non-defaulting Initial Purchasers shall be obligated to purchase the Notes that such defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase on the
Closing Date (the “Remaining Notes”) in the respective proportions that the principal amount of the Notes set forth opposite the name of each non-defaulting Initial Purchaser in Schedule I hereto bears to the total
number of the Notes set forth opposite the names of all the non-defaulting Initial Purchasers in Schedule I hereto; provided, however, that the non-defaulting Initial Purchasers shall not be obligated to purchase any of the
Notes on the Closing Date if the total amount of Notes which the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase on such date exceeds 10% of the total amount of Notes to be purchased on the Closing Date, and no
non-defaulting Initial Purchaser shall be obligated to purchase more than 110% of the amount of Notes that it agreed to purchase on the Closing Date pursuant to this Agreement. If the foregoing maximums are exceeded, the non-defaulting Initial
Purchasers, or those other purchasers satisfactory to the Initial Purchasers who so agree, shall have the right, but not the obligation, to purchase, in such proportion as may be agreed upon among them, all the Remaining Notes. If the non-defaulting
Initial Purchasers or other Initial Purchasers satisfactory to the Initial Purchasers do not elect to purchase the Remaining Notes, this Agreement shall terminate without liability on the part of any non-defaulting Initial Purchaser or the Company,
except that the Company will continue to be liable for the payment of expenses to the extent set forth herein. 
 Nothing contained in this
Agreement shall relieve a defaulting Initial Purchaser of any liability it may have to the Company for damages caused by its default. If other purchasers are obligated or agree to purchase the Notes of a defaulting or withdrawing Initial Purchaser,
the Company or Wachovia may postpone the Closing Date for up to five full business days in order to effect any changes in the Operative Documents or in any other document or arrangement that, in the opinion of counsel for the Company or Counsel for
the Initial Purchasers, may be necessary. 
 12.    Information Supplied by the Initial Purchasers.  The
statements set forth in the second and third sentences of the sixth paragraph, in each case, under the heading “Plan of Distribution” in the Preliminary Memorandum and the Offering Memorandum, to the extent such statements relate to the
Initial Purchasers, constitute the only information furnished by the Initial Purchasers to the Company for the purposes of Sections 2(a) and 8 hereof. 
 13.    Notices.  All communications hereunder shall be in writing and, if sent to the Initial Purchasers, shall be delivered or sent by mail, telex or facsimile transmission and
confirmed in writing to Wachovia Capital Markets, LLC, One Wachovia Center, 301 South College Street, Charlotte, North Carolina 28288-0604, Attention: High Yield Origination, with copies being delivered or sent to Counsel for the Initial Purchasers,
and, if sent to the Company or the Guarantors, shall be delivered or sent by mail, telex or facsimile transmission and confirmed in writing to the Company at Esterline Technologies Corporation, at 500 108th Avenue NE, Suite 1500, Bellevue, WA 98004,
Attn: Chief Financial Officer. 
  

 -22- 

 14.    Successors.  This Agreement shall inure to the benefit of and
shall be binding upon the Initial Purchasers, the Company and the Guarantors and their respective successors and legal representatives, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person
any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of the
Initial Purchasers, the Company and the Guarantors and their respective successors and legal representatives, and for the benefit of no other person, except that (i) the indemnities of the Company and the Guarantors contained in Section 8
of this Agreement shall also be for the benefit of any person or persons who control the Initial Purchasers within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and (ii) the indemnities of the
Initial Purchasers contained in Section 8 of this Agreement shall also be for the benefit of the directors and officers of the Company and the Guarantors, and any person or persons who control the Company or the Guarantors within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act. 
 15.    Applicable
Law.  The validity and interpretation of this Agreement, and the terms and conditions set forth herein, shall be governed by and construed in accordance with the laws of the State of New York. 
 16.    Consent to Jurisdiction and Service of Process; Waiver of Jury Trial. 
  

	 	(a)	All judicial proceedings arising out of or relating to this Agreement may be brought in any state or federal court of competent jurisdiction in the State of New York, which
jurisdiction is exclusive, and the Company and the Guarantors hereby consent to the jurisdiction of such courts. 

  

	 	(b)	Each party agrees that any service of process or other legal summons in connection with any proceeding may be served on it by mailing a copy thereof by registered mail, or a form of
mail substantially equivalent thereto, postage prepaid, addressed to the served party at its address as provided for in Section 13 hereof. Nothing in this Section shall affect the right of the parties to serve process in any other manner
permitted by law. 

 17.    Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

 -23- 

 If the foregoing correctly sets forth our understanding, please indicate your acceptance thereof in the
space provided below for that purpose, whereupon this letter shall constitute an agreement binding the Company, the Guarantors and the Initial Purchasers. 
  

					
	Very truly yours,
	
	ESTERLINE TECHNOLOGIES CORPORATION
		
	By:	 	 /s/ ROBERT D. GEORGE

		 	Name:	  	Robert D. George
		 	Title:	  	 Vice President, Chief Financial
 Officer, Secretary and
Treasurer

  
  
  

	
	GUARANTORS
	
	ADVANCED INPUT DEVICES, INC.,
	AMTECH AUTOMATED MANUFACTURING TECHNOLOGY,
	ANGUS ELECTRONICS CO.,
	ARMTEC COUNTERMEASURES CO.,
	ARMTEC COUNTERMEASURES TNO CO.,
	ARMTEC DEFENSE PRODUCTS CO.,
	AVISTA, INCORPORATED,
	BVR TECHNOLOGIES CO.,
	EA TECHNOLOGIES CORPORATION,
	EQUIPMENT SALES CO.,
	ESTERLINE SENSORS SERVICES AMERICAS, INC.,
	H.A. SALES CO.,
	HAUSER, INC.,
	HYTEK FINISHES CO.,
	JANCO CORPORATION,
	KIRKHILL-TA CO.,
	KORRY ELECTRONICS CO.,
	LEACH HOLDING CORPORATION,
	LEACH INTERNATIONAL CORPORATION,
	LEACH TECHNOLOGY GROUP, INC.,
	MASON ELECTRIC CO.,
	MC TECH CO.,
	MEMTRON TECHNOLOGIES CO.,
	NORWICH AERO PRODUCTS, INC.,

  

 S-1 

	
	PALOMAR PRODUCTS, INC.,
	PRESSURE SYSTEMS, INC.,
	PRESSURE SYSTEMS INTERNATIONAL, INC.,
	SURFTECH FINISHES CO.,
	UMM ELECTRONICS INC.,

  

					
	By:	 	 /s/ ROBERT D. GEORGE

		 	Name:	  	Robert D. George
		 	Title:	  	Secretary and Treasurer

  

					
	 ESTERLINE TECHNOLOGIES HOLDINGS
 LIMITED

		
	By:	 	 /s/ ROBERT D. GEORGE

		 	Name:	  	Robert D. George
		 	Title:	  	Director

  

 S-2 

 The foregoing Agreement is hereby confirmed and accepted as of the date first above written. 
  
  

	
	 WACHOVIA CAPITAL MARKETS, LLC,
 BANC OF AMERICA
SECURITIES LLC,
 KEYBANC CAPITAL MARKETS, A DIVISION
 OF MCDONALD
INVESTMENTS INC.,
 WELLS FARGO SECURITIES, LLC,
 Acting severally
on behalf of themselves as the Initial Purchasers named in the preamble hereto

  
  

					
	By:	 	WACHOVIA CAPITAL MARKETS, LLC
		
	By:	 	 /s/ SCOTT JOYCE

		 	Name:	  	Scott Joyce
		 	Title:	  	Vice President

  

 S-3 

 Attachments: 
 Exhibit
A-Form of Perkins Coie LLP Opinion 
 Schedule 1-Guarantors 
 Schedule A-Allocation of Principal Amount of Senior Notes 

 SCHEDULE 1 
 GUARANTORS 
  
  
  

	
	Advanced Input Devices, Inc.
	
	Amtech Automated Manufacturing Technology
	
	Angus Electronics Co.
	
	Armtec Countermeasures Co.
	
	Armtec Countermeasures TNO Co.
	
	Armtec Defense Products Co.
	
	Avista, Incorporated
	
	BVR Technologies Co.
	
	EA Technologies Corporation
	
	Equipment Sales Co.
	
	Esterline Sensors Services Americas, Inc.
	
	Esterline Technologies Holdings Limited
	
	H.A. Sales Co.
	
	Hauser, Inc.
	
	Hytek Finishes Co.
	
	Janco Corporation
	
	Kirkhill-TA Co.
	
	Korry Electronics Co.
	
	Leach Holding Corporation
	
	Leach International Corporation
	
	Leach Technology Group, Inc.

  

 Sch 1 - 1 

	
	Mason Electric Co.
	
	MC Tech Co.
	
	Memtron Technologies Co.
	
	Norwich Aero Products, Inc.
	
	Palomar Products, Inc.
	
	Pressure Systems, Inc.
	
	Pressure Systems International, Inc.
	
	Surftech Finishes Co.
	
	UMM Electronics Inc.

  

 Sch 1 - 2 

  

 Sch A - 1

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