Document:

EX-10.18

 

Exhibit
10.18

Participant: _______________

No. of Shares: ___

TRANSTECHNOLOGY CORPORATION

Restricted Stock Award Agreement

     This Agreement is entered on [insert date], by and between TransTechnology Corporation, a
Delaware corporation (the “Company”), and the undersigned participant in the Company’s 2004 Long
Term Incentive Plan (the “Participant”).

R E C I T A L S

	 	A.	 	Pursuant to the Company’s 2004 Long Term Incentive Plan (the “Plan”), the
Incentives and Compensation Committee of the Company (the “Committee”) has authorized
an award to Participant of shares of the Company’s Common Stock, par value $.01 per
share (the “Restricted Stock”).
	 
	 	B.	 	Pursuant to the Plan, the Committee has determined that the Restricted Stock to
be so awarded shall be issued subject to certain conditions and restrictions, which
conditions and restrictions are set forth in this Agreement.

     THEREFORE, in consideration of the covenants herein set forth, the parties agree as follows:

	 	1.	 	Award; Acceptance of Award. Subject to the terms and conditions
contained herein, the Company shall issue to Participant, as an award pursuant to the
Plan and without payment by Participant of any consideration
therefor, ___ shares of
Restricted Stock, having a fair market value on the date of the award of $x.xx, and
Participant hereby accepts such award.
	 
	 	2.	 	Forfeiture of Restricted Stock Upon Termination of Employment. In the
event that Participant ceases to be a full-time employee of the Company or any
corporation a majority of the voting stock of which is owned by the Company (a
“Subsidiary”) for any reason whatsoever (including without limitation by reason of the
termination of such employment by the Company or a Subsidiary with or without cause, by
reason of disability, death or retirement or by reason of Participant leaving the
employ of the Company or a Subsidiary voluntarily), then a portion (determined as
hereinafter set forth) of the shares of Restricted Stock awarded pursuant to this
Agreement shall thereupon automatically, and without further notice, demand, period of
time or legal or administrative proceeding, be forfeited and canceled, and all right,
title and interests therein of Participant shall terminate and expire, without payment
by the Company or any Subsidiary of any consideration therefor and without any
liability on the part of the Company or any Subsidiary. Such forfeiture provisions
shall apply as follows:

 

 

	 	(a)	 	If the Participant so ceases to be such an employee on or after [insert
date] (the “Award Date”) but prior to that date which occurs one year
thereafter (the
“First Anniversary Date”), 100% of the total number of shares of Restricted
Stock awarded pursuant to this Agreement shall be so forfeited and canceled;
	 
	 	(b)	 	If the Participant so ceases to be such an employee on or after
the First Anniversary Date but prior to that date which occurs two years after
the Award Date (the “Second Anniversary Date”), then 66-2/3% of the total
number of shares of Restricted Stock awarded pursuant to this Agreement shall
be so forfeited and canceled;
	 
	 	(c)	 	If the Participant so ceases to be such an employee on or after
the Second Anniversary Date but prior to that date which occurs three years
after the Award Date (the “Third Anniversary Date”), then 33-1/3% of the total
number of shares of Restricted Stock awarded pursuant to this Agreement shall
be so forfeited and canceled; and
	 
	 	(d)	 	If the Participant remains a continuous full-time employee of
the Company or a Subsidiary until the Third Anniversary Date, then none of the
shares of Restricted Stock awarded pursuant to this Agreement shall be
forfeited or canceled.

	 	 	 	For purposes of the foregoing, the Participant shall not lose his or her status as a
full-time employee of the Company or a Subsidiary by reason of time away from such
employment as a result of authorized vacation, authorized leave of absence, and
leave by reason of sickness or disability of not longer than three consecutive
months (or such longer period as the Committee may specifically permit, in its sole
discretion, in any particular instance upon written request by the Participant to do
so).
	 
	 	 	 	Notwithstanding the foregoing, the Participant may elect to extend the period during
which shares of Restricted Stock are subject to forfeiture and cancellation (the
“Restriction Period”) as follows. If the Participant desires to extend the
Restriction Period, the Participant shall deliver to the Company a written request
that the Restriction Period be extended for a specified period or until a specified
event. Such election shall be subject in each case to the Committee’s approval and
to such terms as are determined by the Committee, all in its sole discretion. The
Committee shall notify the Participant of its approval and such terms as have been
determined by the Committee, or of its disapproval (as the case may be), within 30
days of its receipt of the Participant’s written request to extend the Restriction
Period. Subject to any exceptions adopted by the Committee, each request must
generally be made at least twelve months prior to the applicable date, set forth
above in this Section 2, upon which shares of Restricted Stock may no longer be
forfeited or canceled.
	 
	 	3.	 	Forfeiture Procedures. If, pursuant to Sections 2 or 7 of this
Agreement, any shares of Restricted Stock are forfeited and canceled, such forfeiture
and cancellation shall be documented pursuant to the appropriate one of the following
procedures:

2

 

	 	(a)	 	If a certificate or certificates representing the number of shares of
Restricted Stock so forfeited and canceled are in the possession of the Company
pursuant to Section 4 hereof, then the officer of the Company having custody of
such certificate shall, forthwith upon the occurrence of the event resulting in
such forfeiture and cancellation, transmit such certificates to the
Company’s transfer agent and registrar (or, if the Company has no such
transfer agent or registrar, then to the appropriate officer of the Company)
with information as to the number of shares so forfeited and canceled and,
if the certificates evidence a number of shares greater than the amount to
be so canceled, with instructions that a certificate representing the shares
not so canceled be issued in the name of the Participant; and
	 
	 	(b)	 	If, pursuant to the provisions of Sections 2 or 7 of this
Agreement, any shares of Restricted Stock are forfeited and canceled and the
Company does not have in its possession a certificate or certificates
representing the shares so forfeited and canceled, then the Participant shall,
upon written demand from the Company, furnish to the Company a certificate duly
endorsed and assigned to the Company representing the number of shares of
Restricted Stock so forfeited and canceled and, upon its receipt thereof, the
Company shall follow the procedures indicated in the preceding paragraph.

	 	 	 	The Participant agrees to provide the Company, upon its request therefor, with one
or more stock assignments separate from certificate, executed by the Participant
without completing the information as to share amount transferred or name of
transferee, and with such other and further instruments of assignment or other
documents which may be reasonably required in order to implement the forfeiture and
cancellation provisions of Sections 2 and 7 of this Agreement.
	 
	 	4.	 	Issuance of Restricted Stock; Retention of Certificate by Company.
Within a reasonable time after the execution of this Agreement by the Company and the
Participant, the Company shall issue, in the name of the Participant as the registered
holder thereof, certificates representing, in the aggregate, the number of shares of
Restricted Stock awarded pursuant to Section 1 hereof. At the time of such issuance
and at all times thereafter, the Company shall deliver to Participant, upon the
Participant’s request, one or more certificates (in such denominations as the
Participant may direct) representing in the aggregate a number of shares of Common
Stock which does not at any time exceed the number of shares not subject to forfeiture
and cancellation under Section 2 hereof. Certificates representing the remaining
shares of Restricted Stock awarded hereunder (which shares are subject to possible
forfeiture and cancellation pursuant to Section 2 hereof) shall be retained in the
custody of the Secretary or any Assistant Secretary of the Company (or any other
officer of the Company designated by the Board of Directors of the Company) for the
purpose of implementing the forfeiture and cancellation provisions of this Agreement.
	 
	 	5.	 	Stock Splits, Stock Dividends, Mergers and Reorganizations. If, at any
time or from time to time when there are shares of Restricted Stock subject to
forfeiture and cancellation under Section 2 hereof:
	 
	 	 	 	

3

 

	 	(a)	 	There is any stock dividend or liquidating dividend of cash
and/or property, stock split or other change in the character or amount of any
of the outstanding securities of the Company; or
	 
	 	(b)	 	There is any consolidation, merger or sale of all, or substantially all,
of the assets of the Company; then, in such event, any and all new, substituted
or
additional securities or other property to which the Participant is entitled
by reason of his or her ownership of the shares of Restricted Stock which
are so subject to forfeiture and cancellation shall be immediately and
similarly subject to such forfeiture and shall be included in the words and
treated as “Restricted Stock” for all purposes of such forfeiture provisions
and all other terms and conditions hereof with the same force and effect as
the original shares of Restricted Stock subject to such forfeiture
provisions.

	 	 	 	Notwithstanding the above, upon the dissolution or liquidation of the Company or
upon any reorganization, merger or consolidation in which the Company does not
survive, the forfeiture and cancellation provisions of Section 2 shall terminate as
to any shares of Restricted Stock not previously forfeited and canceled pursuant to
such provisions.
	 
	 	6.	 	Indemnification of Company. The Participant hereby agrees to indemnify
the Company and to hold the Company harmless from and against any loss, liability, cost
or expense, including attorneys’ fees and expenses, which the Company may incur or to
which the Company may be subject by any reason of or based upon the fact that the
Company has custody of any certificates representing Restricted Stock retained in
accordance with Section 4 hereof and that such stock, or any right, title or interest
therein, may become involved in any legal, administrative or arbitration proceeding.
	 
	 	7.	 	Transfer or Hypothecation of Stock. The Participant agrees that he or
she will not transfer, sell, pledge, assign or in any other way hypothecate, alienate
or dispose of any shares of Restricted Stock awarded under this Agreement so long as
such shares are subject to forfeiture and cancellation under Section 2 hereof. It is
agreed that if the Participant does, or attempts to do, or suffers any of such
prohibited acts or events specified in the immediately preceding sentence, then
forthwith upon the occurrence of such act or event such shares shall be automatically
forfeited and canceled, without payment by the Company of any consideration therefor
and without any notice, demand, period of time or legal or administrative proceeding.
	 
	 	8.	 	Ownership Rights. Subject only to the provisions of this Agreement,
the Participant shall have all of the rights, powers and privileges of an owner of
shares of Common Stock, including without limitation the right to vote such shares and
to receive non-liquidating cash dividends and non-liquidating distributions thereon,
with respect to shares of Restricted Stock awarded hereunder notwithstanding that
certificates representing any or all of such shares are retained by the Company
pursuant to Section 4 hereof; provided, however, that all such rights shall terminate
automatically with respect to any shares forfeited and canceled pursuant to Sections 2
or 7 of this Agreement.

4

 

	 	9.	 	Endorsement on Share Certificates. The Participant agrees that the
certificates representing any Restricted Stock subject to the forfeiture and
cancellation provisions of Section 2 may have endorsed upon them in a conspicuous
manner a legend in substantially the following form:

“The voluntary or involuntary transfer or encumbrance of the
shares represented by this certificate are restricted by, and such
shares are subject to, the provisions of a certain agreement between
the
company and the registered holder hereof (which agreement, among
other things, subjects such shares to possible forfeiture and
cancellation), a copy of which is on file at the principal office of
the company and will be furnished to the holder of this certificate
upon request without charge.”

	 	 	 	When the forfeiture and cancellation provisions of Section 2 hereof expire or
terminate as to any of such shares, the Company shall, upon the Participant’s
request and at no charge to the Participant, exchange the certificates representing
the shares that contain the endorsement provided for herein for new certificates
representing those of the shares as to which such rights have expired or terminated
containing no such endorsement and certificates containing such endorsement
representing the balance of the shares as to which such rights have not expired or
terminated.
	 
	 	10.	 	No Contract of Employment. The Participant acknowledges and agrees
that this Agreement shall not be construed to give Participant any right to be retained
in the employ of the Company or any Subsidiary, and that the right and power of the
Company or any Subsidiary to dismiss or discharge the Participant (with or without
cause) is strictly reserved. The Participant recognizes that, in the event of any such
discharge, the forfeiture provisions of Section 2 hereof shall be fully applicable.
	 
	 	11.	 	Tax Withholding. Participant acknowledges that the Company is
required, and hereby specifically authorizes the Company, to deduct and withhold from
the wages, salary or other income payable by the Company to Participant from time to
time, the requisite amounts required to be so deducted and withheld for federal, state
or local taxes with respect to the award of Restricted Stock hereunder. Participant
specifically authorizes the Company to withhold such amounts from time to time, as
required by law, in connection with the termination or expiration of the forfeiture
provisions of Section 2 hereof. Participant agrees that the Company may, at its
election, require Participant to pay to the Company (for such withholding on behalf of
Participant) any amounts required to be so withheld if such amounts are not directly
withheld from such wages, salary or other income, and in such event Participant shall
forthwith make such payments.
	 
	 	12.	 	Governing Law. This Agreement and the rights and obligations of the
parties hereto shall be governed by and construed in accordance with the internal
substantive laws of the State of Delaware.

5

 

	 	13.	 	Notices. Any notice or other communication required or permitted
hereunder shall be sufficiently given only if delivered personally or sent by
registered or certified mail, postage prepaid, to the Company at its principal place of
business, or to the Participant at the address below or any address of Participant
appearing on the Company’s stock records, or to such other address or addresses as
shall be furnished in writing in the foregoing manner by either party to the other
party, and shall be deemed to have been given as of the date so personally delivered or
two days after the date deposited in the United States mail, as the case may be.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

	 	 	 	 	 	 	 
	 	 	TRANSTECHNOLOGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	By:
	 	Robert L. G. White	 	 
	 

	 	Its:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address:	 	 

Grant Number:

6EX-10.31

 

Exhibit 10.31

TransTechnology Corporation

As of February 17, 2006

Tinicum, Inc.

Tinicum Capital Partners II, L.P.

Tinicum Capital Partners II Parallel Fund, L.P.

800 Third Avenue

40th Floor

New York, NY 10022

Attn.: Ms. Stephanie S. Chen

     Re:           Amended and Restated Confidentiality Agreement

Ladies and Gentlemen:

     In connection with the consideration by Tinicum, Inc., Tinicum Capital Partners II, L.P. and
Tinicum Capital Partners II Parallel Fund, L.P. (collectively, “you”) of a possible negotiated
transaction with or acquisition of (a “Possible Transaction”) TransTechnology Corporation
and/or its subsidiaries or divisions (collectively, with its subsidiaries and divisions, the
“Company”), the Company has made available and is prepared to make available to you and
your Representatives (as hereinafter defined) certain information concerning the business,
financial condition, operations, assets and liabilities of the Company. As a condition to such
information being furnished to you and your Representatives, you agree that you will, and will
cause your Representatives to, treat the Evaluation Material (as hereinafter defined) in accordance
with the provisions of this letter agreement and take or abstain from taking certain other actions
as set forth herein. The term “Representatives” shall include the members, directors,
officers, employees, agents, partners and advisors of a party and those of its subsidiaries, and/or
divisions (including, without limitation, attorneys, accountants, consultants, bankers, financial
advisors and prospective sources of financing for the Possible Transaction). Notwithstanding any
other provision hereof, the Company reserves the right not to make available hereunder any
information, the provision of which is determined by it, in its sole discretion, to be inadvisable
or inappropriate.

     1. Evaluation Material. The term “Evaluation Material” shall mean all
information relating, directly or indirectly, to the Company or the business, products, markets,
condition (financial or other), operations, assets, liabilities, results of operations, cash flows
or prospects of the Company (whether prepared by the Company, its advisors or otherwise) which is
delivered, disclosed or furnished by or on behalf of the Company to you or to your Representatives,
before, on or after the date hereof, regardless of the manner in which it is delivered, disclosed
or furnished, or which you or your Representatives otherwise learn or obtain, through observation
or through analysis of such information, data or knowledge, and shall also be deemed to include all
notes, analyses, compilations, studies, forecasts, interpretations or other documents prepared by
you or your Representatives that contain, reflect or are based upon, in whole or in part, the
information delivered, disclosed or furnished to you or

 

 

As of February 17, 2006

Page 2

your Representatives pursuant hereto. Notwithstanding any other provision hereof, the term
Evaluation Material shall not include information which (i) is or becomes generally available to
the public other than as a result of a disclosure by you or your Representatives, (ii) was within
your possession and developed by you prior to it being furnished to you by or on behalf of the
Company pursuant hereto, provided that you had no reasonable basis (after due inquiry) for
concluding that the source of such information was bound by a confidentiality agreement with, or
other contractual, legal or fiduciary obligation of confidentiality to, the Company or any other
party with respect to such information or (iii) becomes available to you on a non-confidential
basis from a source other than the Company or any of its Representatives, provided that you do not
know or have reason to believe (after due inquiry) that the source is bound by a confidentiality
agreement with, or other contractual, legal or fiduciary obligation of confidentiality to, the
Company or any other party with respect to such information.

     2. Use and Disclosure of Evaluation Material. You recognize and acknowledge the
competitive value and confidential nature of the Evaluation Material and the damage that could
result to the Company if any information contained therein is disclosed to a third party. You
hereby agree that you and your Representatives shall use the Evaluation Material solely for the
purpose of evaluating a Possible Transaction and for no other purpose, that the Evaluation Material
will not be used in any way detrimental to the Company, that the Evaluation Material will be kept
confidential and that you and your Representatives will not disclose any of the Evaluation Material
in any manner whatsoever; provided, however, that (i) you may make any disclosure of the Evaluation
Material to which the Company gives its prior written consent and (ii) any of the Evaluation
Material may be disclosed to your Representatives who need to know such information for the purpose
of evaluating a Possible Transaction, who are provided with a copy of this letter agreement and who
agree in a writing signed and delivered to us to be bound by the terms hereof. In any event, you
agree to undertake reasonable precautions to safeguard and protect the confidentiality of the
Evaluation Material, to accept responsibility for any breach of this letter agreement by you or any
of your Representatives, and, at your sole expense, to take all reasonable measures (including, but
not limited to, court proceedings) to restrain yourself and your Representatives from prohibited or
unauthorized disclosure or uses of the Evaluation Material.

     In addition, you agree that, without the prior written consent of the Company, you and your
Representatives will not disclose to any other person the fact that you or your Representative have
received Evaluation Material or that Evaluation Material has been made available to you or your
Representative, that investigations, discussions or negotiations are taking place concerning a
Possible Transaction or any of the terms, conditions or other facts with respect to any Possible
Transaction, including the status thereof and the identity of the parties thereto (collectively,
the “Discussion Information”). Without limiting the generality of the foregoing, you
further agree that, without the prior written consent of the Company, neither you nor any of your
“affiliates” (as defined under the Securities Exchange Act of 1934, as amended (the “1934 Act”)
will, directly or indirectly, enter into any agreement, arrangement or understanding, or any
discussions which might lead to any such agreement, arrangement or understanding, with any person
(other than the Company) regarding a Possible Transaction. The

 

 

As of February 17, 2006

Page 3

term “person” as used in this letter agreement shall be broadly interpreted to include the
media and any corporation, partnership, group, individual or other entity.

     In the event that you or any of your Representatives are requested or required (by oral
questions, interrogatories, requests for information or documents in legal proceedings, subpoena,
civil investigative demand or other similar process) to disclose any of the Evaluation Material or
Discussion Information, you shall provide the Company with prompt written notice of any such
request or requirement so that the Company may in its sole discretion seek a protective order or
other appropriate remedy and/or waive compliance with the provisions of this letter agreement. If,
in the absence of a protective order or other remedy or the receipt of a waiver by the Company, you
or any of your Representatives are nonetheless, in the opinion of outside legal counsel, legally
compelled to disclose Evaluation Material or Discussion Information to any tribunal or else stand
liable for contempt or suffer other censure or penalty, you or your Representatives may, without
liability hereunder, disclose to such tribunal only that portion of the Evaluation Material or
Discussion Information which such counsel advises you is legally required to be disclosed, provided
that you use your best efforts to preserve the confidentiality of the Evaluation Material and the
Discussion Information, including, without limitation, by cooperating with the Company to obtain an
appropriate protective order or other reliable assurance that confidential treatment will be
accorded the Evaluation Material and the Discussion Information by such tribunal; and provided
further that you shall promptly notify the Company of (i) your determination to make such
disclosure and (ii) the nature, scope and contents of such disclosure.

     3. Return and Destruction of Evaluation Material. In the event that you decide not to
proceed with a Possible Transaction, you will promptly inform the Company of that decision. In
that case, or at any time upon the request of the Company in its sole discretion and for any
reason, you will as directed by the Company promptly deliver, at your expense, to the Company or
destroy all Evaluation Material (and any copies thereof) furnished to you or your Representatives
by or on behalf of the Company pursuant hereto. In the event of such a decision or request, all
other Evaluation Material prepared by you or on your behalf shall be returned or destroyed and no
copy thereof shall be retained, and, upon the Company’s request, you shall provide the Company with
prompt written confirmation of your compliance with this paragraph. Notwithstanding the return or
destruction of the Evaluation Material, you and your Representatives shall continue to be bound by
your obligations of confidentiality and other obligations and agreements hereunder.

     4. No Representations or Warranties. You understand, acknowledge and agree that
neither the Company nor any of its Representatives makes any representation or warranty, express or
implied, as to the accuracy or completeness of the Evaluation Material. You agree that neither the
Company nor any of its Representatives shall have any liability to you or to any of your
Representatives relating to or resulting from the use of the Evaluation Material or any errors
therein or omissions therefrom. Only those representations or warranties which are made in a final
definitive agreement regarding any transactions contemplated hereby, when, as and if executed and
delivered, and subject to such limitations and restrictions as may be specified therein, will have
any legal effect.

 

 

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Page 4

     5. No Solicitation. In consideration of the Evaluation Material being furnished to
you, you hereby agree that, during the term of this letter agreement, as noted in paragraph 21
herein, neither you nor any of your affiliates or Representatives (nor any person acting on behalf
of or in concert with you or any of your affiliates or Representatives) will, without the prior
written consent of the Company, directly or indirectly, solicit to employ or actually employ any of
the officers or employees of the Company serving as such as of the date of this agreement or at any
time during the term of this agreement; provided, however, that you may engage in general
solicitations for, and subsequently hire, employees in the ordinary course of business and
consistent with past practice.

     In consideration of the Evaluation Material being furnished to you, you hereby agree that,
during the term of this letter agreement, neither you nor any of your affiliates or Representatives
will (i) solicit any existing customers of the Company for purchases of products, information or
services that are within the scope of the business activities of the Company or (ii) take any other
action that is reasonably likely to cause injury to the relationship between the Company, and its
employees, customers, suppliers or other business associates provided, however, that this clause
shall not prohibit you or any company or business acquired by you or any of your affiliates after
the date of this letter agreement from making solicitations to your or its existing customers that
are also customers of the Company in the ordinary course of your or its business (it being
understood that neither you nor any of your affiliates, including without limitation, any company
or business acquired by your or any of your affiliates, shall use or otherwise rely on any
Evaluation Material in connection with many any such solicitations to existing customers).

     6. Material Non-Public Information. You acknowledge and agree that you are aware (and
that your Representatives are aware or, upon receipt of any Evaluation Information or Discussion
Information, will be advised by you) that (i) the Evaluation Material being furnished to you or
your Representatives contains material, non-public information regarding the Company and (ii) the
United States securities laws prohibit any persons who have material, nonpublic information
concerning the matters which are the subject of this letter agreement, including the Discussion
Information, from purchasing or selling securities of a company which may be a party to a
transaction of the type contemplated by this letter agreement or from communicating such
information to any person under circumstances in which it is reasonably foreseeable that such
person is likely to purchase or sell such securities in reliance upon such information.

     7. Standstill. You agree that, for a period until the earlier of (i) a public
announcement of any tender or exchange offer, merger or other business combination involving the
Company, any of the subsidiaries or assets of the Company or the subsidiaries constituting a
significant portion of the consolidated assets of the Company and its subsidiaries (a “Sale
Transaction”), (ii) September 21, 2007, (iii) such date as the Investor (as such term is defined in
the SPA) or its affiliates do not own 50% of the shares purchased in the Stock Purchase Agreement,
dated February 15, 2006, by and among the Company, Tinicum Capital Partners II L.P., Tinicum
Capital Partners Parallel Fund II, L.P. and Tinicum Inc. (the “SPA”), or (iv) the Board of
Directors waives the restrictions in this paragraph 7, unless specifically invited in

 

 

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Page 5

writing by the Company, neither you nor any of your affiliates or Representatives will in any
manner directly or indirectly: (a) assist, facilitate or encourage any other person to effect or
seek, offer or propose (whether publicly or otherwise) to effect or participate in (x) any Sale
Transaction or (y) any recapitalization, restructuring, liquidation, dissolution or other
extraordinary transaction with respect to the Company or any of its subsidiaries, it being
understood that the foregoing shall not prohibit you or your affiliates from effecting or
participating in such transaction, (b) engage in any “solicitation” of “proxies” (as such terms are
used in the proxy rules of the Securities and Exchange Commission) or consents to vote any voting
securities of the Company; (c) form, join or in any way participate in a “group” (as defined under
the 1934 Act) with unaffiliated third parties with respect to the Company or otherwise act in
concert with any person in respect of any such securities; (d) other than by requesting the Board
of Directors of the Company to waive any of the provisions of this Section, take any action which
would or would reasonably be expected to force the Company to make a public announcement regarding
any of the types of matters set forth in (a) above; or (e) enter into any discussions or
arrangements with any third party (other than your representatives and any financing sources) with
respect to any of the foregoing. The Company agrees that during such period you may request that
the Company or any of its Representatives, directly or indirectly, amend or waive any provisions of
this paragraph. Nothing in this paragraph 7 shall prohibit or be construed to prohibit the
Investor from making any filings with the Securities and Exchange Commission which the Investor
reasonably determines it is required to make.

     8. No Agreement. You understand and agree that no contract or agreement providing for
any Possible Transaction shall be deemed to exist between you and the Company unless and until a
final definitive agreement has been executed and delivered, and you hereby waive, in advance, any
claims (including, without limitation, breach of contract) in connection with any Possible
Transaction unless and until you and the Company shall have entered into a final definitive
agreement. You also agree that unless and until a final definitive agreement regarding a Possible
Transaction has been executed and delivered, neither the Company nor you will be under any legal
obligation of any kind whatsoever with respect to such a Possible Transaction by virtue of this
letter agreement except for the matters specifically agreed to herein. You further acknowledge and
agree that the Company reserves the right, in its sole discretion, to reject any and all proposals
made by you or any of your Representatives with regard to a Possible Transaction, to determine not
to engage in discussions or negotiations and to terminate discussions and negotiations with you at
any time, and to conduct, directly or through any of its Representatives, any process for any
transaction involving the Company or any of its subsidiaries, if and as they in their sole
discretion shall determine (including, without limitation, negotiating with any other interested
parties and entering into a definitive agreement without prior notice to you or any other person).

     9. No Waiver of Rights. It is understood and agreed that no failure or delay by the
Company in exercising any right, power or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise thereof preclude any other or further exercise thereof or
the exercise of any other right, power or privilege hereunder.

 

 

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     10. Remedies. It is understood and agreed that money damages would not be a
sufficient remedy for any breach of this letter agreement by you or any of your Representatives and
that the Company shall be entitled to equitable relief, including, without limitation, injunction
and specific performance, as a remedy for any such breach. Such remedies shall not be deemed to be
the exclusive remedies for a breach by you of this letter agreement but shall be in addition to all
other remedies available at law or equity to the Company. You further agree not to raise as a
defense or objection to the request or granting of such relief that any breach of this letter
agreement is or would be compensable by an award of money damages, and you agree to waive any
requirements for the securing or posting of any bond in connection with such remedy. You also
agree to reimburse the Company for all costs incurred by the Company in connection with the
enforcement of this letter agreement (including, without limitation, reasonable out-of-pocket legal
fees in connection with any litigation, including any appeal therefrom).

     11. Governing Law. This letter agreement is for the benefit of the Company (and its
subsidiaries and affiliates) and its Representatives, and shall be governed by and construed in
accordance with the laws of the State of New York applicable to agreements made and to be performed
entirely within the State of New York, without regard to the conflict of law provisions thereof.
You hereby irrevocably and unconditionally consent to submit to the exclusive jurisdiction of the
courts of the State of New York and of the United States of America located in the State of New
York for any actions, suits or proceedings arising out of or relating to this letter agreement and
the transactions contemplated hereby (and you agree not to commence any action, suit or proceeding
relating thereto except in such courts, and further agree that service of any process, summons,
notice or document by U.S. registered mail to your address set forth above shall be effective
service of process for any action, suit or proceeding brought against you in any such court). You
hereby irrevocably and unconditionally waive any objection which you may now or hereafter have to
the laying of venue of any action, suit or proceeding arising out of this letter agreement or the
transactions contemplated hereby in the courts of the State of New York or the United States of
America located in the State of New York, and hereby further irrevocably and unconditionally waive
and agree not to plead or claim in any such court that any such action, suit or proceeding brought
in any such court has been brought in an inconvenient forum.

     12. Entire Agreement. This letter agreement contains the entire agreement between you
and the Company regarding its subject matter and supersedes all prior agreements, understandings,
arrangements and discussions between you and the Company regarding such subject matter.

     13. No Modification. No provision in this letter agreement can be waived, modified or
amended except by written consent of you and the Company, which consent shall specifically refer to
the provision to be waived, modified or amended and shall explicitly make such waiver, modification
or amendment.

     14. Counterparts. This letter agreement may be signed by facsimile and in one or more
counterparts, each of which shall be deemed an original but all of which shall be deemed to
constitute a single instrument.

 

 

As of February 17, 2006

Page 7

     15. Severability. If any provision of this letter agreement is found to violate any
statute, regulation, rule, order or decree of any governmental authority, court, agency or
exchange, such invalidity shall not be deemed to affect any other provision hereof or the validity
of the remainder of this letter agreement, and such invalid provision shall be deemed deleted
herefrom to the minimum extent necessary to cure such violation.

     16. Inquiries. All inquiries for information about the Company and its subsidiaries
and communications with the Company shall be made through Christopher Croft, Senior Vice President,
Houlihan Lokey Howard & Zukin, 685 Third Avenue, New York, NY 10017 (212) 497-4121. Neither you
nor any of your Representatives will contact any third party with whom the Company or any of its
subsidiaries has a business or other relationship, including, without limitation, any director
(other than Mr. Berthelot, Thomas Chema and William Recker), officer, employee, customer, supplier,
stockholder or creditor of the Company or any of its subsidiaries, in connection with a Possible
Transaction without the Company’s prior written consent.

     17. Successors. This letter agreement shall inure to the benefit of, and be
enforceable by, the Company and its successors and assigns.

     18. Third Party Beneficiaries. You agree and acknowledge that this letter agreement
is being entered into by and on behalf of the Company and its subsidiaries and divisions and that
they shall be third party beneficiaries hereof, having all rights to enforce this letter agreement.
You further agree that, except for such parties, nothing herein expressed or implied is intended
to confer upon or give any rights or remedies to any other person under or by reason of this letter
agreement.

     19. No License. Nothing herein shall be deemed to grant a license, whether directly
or by implication, estoppel or otherwise, to any Evaluation Material disclosed pursuant to this
letter agreement.

     20. Term. This letter agreement shall have a term ending the later of (i) September
21, 2007 or (ii) the date on which the Investor owns less than 50% of those certain shares
purchased by the Investor pursuant to the SPA; provided, however, that the term
contained in this paragraph 20 shall not apply to the obligations and other agreements contained in
paragraph 7 of this letter agreement.

     21. Agreements and Obligations Joint and Several. All agreements and obligations of
Tinicum, Inc., Tinicum Capital Partners II, L.P. and Tinicum Capital Partners II Parallel Fund,
L.P. contained in this letter agreement shall be joint and several.

     22. Amendment and Restatement. This letter agreement amends and restates in its
entirety that certain letter agreement dated September 21, 2005 by and between the Company and
Tinicum, Inc.

[Signature Page Follows]

 

 

As of February 17, 2006

Page 8

     Please confirm your agreement with the foregoing by having a duly authorized officer of your
organization sign and return one copy of this letter to the undersigned, whereupon this letter
agreement shall become a binding agreement among you and the Company.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTECHNOLOGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Robert L.G. White	 	 
	 	 	Title: President and Chief Executive Officer	 	 

CONFIRMED AND AGREED

as of the date written above:

TINICUM, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	TINICUM CAPITAL PARTNERS II, L.P.
	 
	 	 	 	 
	By:

	 	TINICUM LANTERN II, LLC	 	 
	Its:

	 	General Partner	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	Title:
	 	 	 	 
	 
	 	 	 	 
	TINICUM CAPITAL PARTNERS PARALLEL FUND II, L.P.
	 
	 	 	 	 
	By:

	 	TINICUM LANTERN II, LLC	 	 
	Its:

	 	General Partner	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	Title:

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