Document:

Exhibit
10.7

 

 

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

 

 

                THIS
AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (“Amendment”) is entered into as of the
24th day of February, 2006, between TransDigm Holding Company, a Delaware
corporation (the “Company”), and Raymond Laubenthal (the “Executive”).

 

                WHEREAS,
the Company and the Executive entered into a certain Employment Agreement dated
November 18, 2005, effective October 1, 2005 (the “Employment Agreement”).  Capitalized terms used herein without
definition have the meanings given thereto in the Employment Agreement.

 

                WHEREAS,
the Company and the Executive seek to amend the Employment Agreement in order
to make clear certain provisions of the noncompetition clause and the
indemnification to which the Executive is entitled under the terms of his
employment.

 

                NOW,
THEREFORE, the parties agree as follows:

 

                1.             Section 7 of the Employment Agreement
is hereby amended such that references to the “Company” contained therein are
deemed to refer to “TransDigm Group Incorporated and each of its direct and
indirect subsidiaries.”

 

                2.             The Employment Agreement is hereby
amended to delete Section 20 in its entirety and substitute in lieu thereof the
following:

 

                “The Company shall indemnify the Executive to the
fullest extent permitted by the laws of the State of Delaware, as in effect at
the time of the subject act or omission, and shall advance to the Executive
reasonable attorneys’ fees and expenses as such fees and expenses are incurred
(subject to an undertaking from the Executive to repay such advances if it
shall be finally determined by a judicial decision which is not subject to
further appeal that the Executive was not entitled to the reimbursement of such
fees and expense) and he shall be entitled to the protection of any insurance
policies the Company shall elect to maintain generally for the benefit of its
directors and officers (“Directors and Officers Insurance”) against all costs,
charges and expenses incurred or sustained by him in connection with any
action, suit or proceeding to which he may be made a party by reason of his
being  or having been a director, officer
or employee of the Company or any of its subsidiaries or his serving or having
served any other enterprise as a director, officer or employee at the request
of the Company (other than any dispute, claim or controversy arising under or
relating to this Agreement).  The Company
covenants to maintain during the Term and for a reasonable period of time
thereafter (which period shall not be less than five (5) years) for the benefit
of the Executive (in his capacity as a current or former officer and director
of the Company, as applicable) Directors and Officers Insurance providing
customary benefits to the Executive with respect to all periods during the Term.”

 

 

                3.             Except as amended hereby, the
Employment Agreement shall remain in full force and effect.

 

                IN
WITNESS WHEREOF, the undersigned have executed this Amendment as of the date
and year first above written.

 

TRANSDIGM HOLDING COMPANY

 

 

	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
  Name:

  	
  W. Nicholas Howley

  
	
  Title:

  	
  Chairman and Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Raymond Laubenthal

  	
   

  
	
  RAYMOND LAUBENTHAL

  	
   

  
				

 

2Exhibit
10.9

 

 

AMENDMENT
NO. 1 TO EMPLOYMENT AGREEMENT

 

 

                THIS
AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (“Amendment”) is entered into as of the
24th day of February, 2006, between TransDigm Holding Company, a Delaware
corporation (the “Company”), and Greg Rufus (the “Executive”).

 

                WHEREAS,
the Company and the Executive entered into a certain Employment Agreement dated
November 18, 2005, effective October 1, 2005 (the “Employment Agreement”).  Capitalized terms used herein without
definition have the meanings given thereto in the Employment Agreement.

 

                WHEREAS,
the Company and the Executive seek to amend the Employment Agreement in order
to make clear certain provisions of the noncompetition clause and the
indemnification to which the Executive is entitled under the terms of his
employment.

 

                NOW,
THEREFORE, the parties agree as follows:

 

                1.             Section 7 of the Employment Agreement
is hereby amended such that references to the “Company” contained therein are
deemed to refer to “TransDigm Group Incorporated and each of its direct and
indirect subsidiaries.”

 

                2.             The Employment Agreement is hereby
amended to delete Section 20 in its entirety and substitute in lieu thereof the
following:

 

                “The Company shall indemnify the Executive to the
fullest extent permitted by the laws of the State of Delaware, as in effect at
the time of the subject act or omission, and shall advance to the Executive
reasonable attorneys’ fees and expenses as such fees and expenses are incurred
(subject to an undertaking from the Executive to repay such advances if it
shall be finally determined by a judicial decision which is not subject to
further appeal that the Executive was not entitled to the reimbursement of such
fees and expense) and he shall be entitled to the protection of any insurance
policies the Company shall elect to maintain generally for the benefit of its
directors and officers (“Directors and Officers Insurance”) against all costs,
charges and expenses incurred or sustained by him in connection with any
action, suit or proceeding to which he may be made a party by reason of his
being  or having been a director, officer
or employee of the Company or any of its subsidiaries or his serving or having
served any other enterprise as a director, officer or employee at the request
of the Company (other than any dispute, claim or controversy arising under or
relating to this Agreement).  The Company
covenants to maintain during the Term and for a reasonable period of time
thereafter (which period shall not be less than five (5) years) for the benefit
of the Executive (in his capacity as a current or former officer and director
of the Company, as applicable) Directors and Officers Insurance providing
customary benefits to the Executive with respect to all periods during the
Term.”

 

 

 

 

                3.             Except as amended hereby, the
Employment Agreement shall remain in full force and effect.

 

                IN
WITNESS WHEREOF, the undersigned have executed this Amendment as of the date
and year first above written.

 

TRANSDIGM HOLDING COMPANY

 

 

	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
  Name:  W. Nicholas Howley

  	
   

  
	
  Title:    Chairman and Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
  /s/ Greg Rufus

  	
   

  
	
  GREG RUFUS

  	
   

  

 

 

 

 

 

 

 

 

 

 

2Exhibit
10.15

February 24, 2006

W. Nicholas Howley

Chief Executive Officer

TransDigm Group Incorporated

1301 East 9th Street, Suite 3710

Cleveland, Ohio 44114

Dear Nick:

The purpose of this letter is to confirm our
mutual understanding regarding the interpretation of the Company’s Third
Amended and Restated Stock Option Plan (the “Plan”) as it relates to the
potential vesting of stock options upon the occurrence of a change in control
or other sale event.

As was agreed upon by you, Warburg Pincus Private
Equity VIII, L.P. (“Warburg Pincus”) and the Company at the time the Plan was
initially conceived, the vesting provision contained Section 8(b)(ii)(C) was
intended to apply “upon a change of control or other sale if the investors
received a [specified] return on their invested equity....”  The determining factor in each event is the
extent to which the Warburg Pincus and its investor group has realized the
targeted NRR (as described in the Plan) on the shares of the Company acquired
on July 22, 2003 (with respect to such shares, Warburg Pincus and its investor
group are referred to below as the “Investor Group”).  This understanding was memorialized in a
letter dated June 6, 2003, stating the intentions of the parties, from Warburg
Pincus to Mr. W. Nicholas Howley, then President and Chief Executive Officer of
TransDigm Holding Company.  This letter
was signed by both Warburg Pincus and Mr. Howley.

The Compensation Committee of the Board of
Directors has reviewed the intentions of the parties and, by this letter, as the
administrator of the Plan, is confirming that the NRR vesting provisions
contained in Section 8(b)(ii)(C) apply to any sale of Company stock by members
of the Investor Group.

Specifically, including for purposes of
making clear the mechanics of implementing this understanding, the Compensation
Committee has determined that:  if the
NRR equals, or is in excess of, 25% upon any sale of stock by the Investor
Group on the shares so sold, a percentage (not to exceed 100%) of the unvested
Performance Vested Options as of the date of this letter (the “Unvested
Performance Vested Options”) equal to the shares then sold by the Investor
Group as a percentage of all outstanding shares of stock of the Company
originally acquired by the Investor Group shall vest.  If the NRR is 20%, a percentage (not to
exceed 100%) of the Unvested Performance Vested Options as of the date of this
letter equal to the shares then sold by the Investor Group as a percentage of
all outstanding shares of stock of the Company originally acquired by the
Investor Group, multiplied by .75, shall vest. 
For each additional 1% of NRR in excess of 20% (to and including 24.9%)
earned on shares sold by the Investor Group, an additional percentage (not to
exceed 100%) of the Unvested Performance Vested Options as of the date of this
letter equal to the shares then sold by the Investor Group as a percentage of
all outstanding shares of stock of the Company originally acquired by the
Investor Group, multiplied by .05, shall vest. 
The foregoing is intended to apply in the event of distributions of
stock to the Investor Group’s respective partners and limited partners, but not
in the event of any direct or indirect distributions from any investment
vehicle in which the Investor Group holds Company stock to the members of such
Investor Group in proportion to their ownership position in such investment
vehicle.

The understanding addressed in this letter
does not amend or modify any provision contained in the Plan.

Sincerely,

/s/ David Barr

David Barr

Member of the Compensation Committee

of the Board of Directors of TransDigm Group Incorporated

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