Document:

EXHIBIT 10.11

 

[Form of Management Option Agreement]

 

OPTION AGREEMENT

FOR PERFORMANCE VESTED OPTIONS

 

TD Holding
Corporation (the “Company”), pursuant to its 2003 Stock Option Plan (the
“Plan”), hereby grants to the Holder Performance Vested Options to purchase
the number of shares of Stock set forth below. 
The Options are subject to all of the terms and conditions set forth
herein as well as all of the terms and conditions of the Plan, all of which are
incorporated herein in their entirety. 
Capitalized terms not otherwise defined herein shall have the same
meaning as set forth in the Plan.  In
the event of a conflict or inconsistency between the terms and provisions of
the Plan and the provisions of this Agreement, the Plan shall govern and
control.

 

	
  Holder:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of Shares of Stock Subject to the Options:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise Price per Share:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Type of Option:

  	
  Nonqualified Stock Option

  

 

Additional Terms:

 

•                  Options shall be
exercisable in whole shares of Stock only.

 

•                  Each share of
Stock purchased through the exercise of Options shall be paid for in full at
the time of the exercise.  Each Option
shall cease to be exercisable as to any share of Stock when the Holder
purchases the share of Stock or when the Option otherwise expires.

 

•                  Upon exercise of
Options, the Holder will be required to satisfy applicable withholding tax
obligations as provided in the Plan.

 

Representations and Warranties
of the Holder:

 

The Holder hereby represents and warrants to the Company that:

 

•                  the Holder
understands that the Stock has not been registered under the Securities Act of
1933, as amended (the “Securities Act”), nor qualified under any state
securities laws, and that they are being offered and sold pursuant to an exemption
from such registration and qualification based in part upon such Holder’s
representations contained herein;

 

•                  the Holder has
such knowledge and experience in financial and business matters that the Holder
is capable of evaluating the merits and risks of the investment contemplated by
this Agreement; and the Holder is able to bear the economic risk of this
investment in the Company (including a complete loss of this investment);

 

•                  the Holder
recognizes that no public market exists for the Stock, and none will exist in
the future; that it must bear the economic risk of this investment indefinitely
unless the Stock are registered pursuant to the Securities Act or an exemption
from such registration is available, and unless the disposition of such Stock
is qualified under applicable state securities laws or an exemption from such
qualification is available, and that the Company has no obligation or present
intention of so registering the Stock; understands that there is no assurance
that any exemption from the Securities Act will be available, or, if available,
that such exemption will allow the Holder to transfer any or all the
Securities, in the amounts, or at the times the Holder might propose;
understands at the present time that Rule 144 (“Rule 144”) promulgated
under the Securities Act by the Securities and Exchange Commission is not
applicable to sales of the Securities because they are not registered under
Section 12 of the Securities Exchange Act of 1934 as amended (the

 

 

“Exchange Act”) and there is not
publicly available the information concerning the Company specified in Rule
144; acknowledges that the Company is not presently under any obligation to
register under Section 12 of the Exchange Act or to make publicly available the
information specified in Rule 144 and that it may never be required to do so;

 

•                  the Holder is
acquiring the Stock solely for its own account for investment and not with a
view toward the resale, transfer, or distribution thereof, nor with any present
intention of distributing the Securities. 
Except as specifically provided herein, no other person has any right
with respect to, or interest in, the Stock to be purchased by the Holder, nor
has the Holder agreed to give any person any such interest or right in the future;

 

•                  except as
specifically provided herein or in the Plan, the Holder has no contract,
undertaking, understanding, agreement or arrangement, formal or informal, with
any person to sell, transfer or pledge all or any portion of his, her or its
Stock, and has no current plans to enter into any such contract, undertaking,
understanding, agreement or arrangement;

 

•                  the Holder has
not seen, received, been presented with, or been solicited by any leaflet,
public promotional meeting, article or any other form of advertising or general
solicitation as to the Company’s sale to such Holder of his, her or its Stock;
and

 

•                  the Holder is
familiar with the business and operations of the Company and has been afforded
full and complete access to the books, financial statements, records,
contracts, documents and other information concerning the Company and its
proposed activities, and has been afforded an opportunity to ask such questions
of the Company’s agents, accountants and other representatives concerning the
Company’s proposed business, operations, financial condition, assets,
liabilities and other relevant matters as he has deemed necessary or desirable,
and has been given all such information as has been requested, in order to
evaluate the merits and risks of the investment contemplated herein.

 

THE UNDERSIGNED HOLDER ACKNOWLEDGES RECEIPT
OF THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF OPTIONS UNDER THIS
OPTION AGREEMENT, AGREES TO BE BOUND BY THE TERMS OF BOTH THE OPTION AGREEMENT
AND THE PLAN.

 

 

	
  TD HOLDING CORPORATION

  	
   

  	
  HOLDER

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
							

 

2EXHIBIT 10.12

 

DEMAND PROMISSORY
NOTE

 

	
  $749,925,329.03

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New York,
  New York

  	
   

  	
  July 22, 2003

  

 

FOR VALUE
RECEIVED, the undersigned (“Maker”) unconditionally promises to pay to
the order of TransDigm Inc., a Delaware corporation (“Lender”), at 26380
Curtiss Wright Parkway Richmond Heights, Ohio 44143, or at such other place as
the holder of this Demand Promissory Note (this “Note”) may designate
from time to time in writing, ON DEMAND, in immediately available funds, the
principal sum of SEVEN HUNDRED FORTY NINE MILLION NINE HUNDRED TWENTY FIVE
THOUSAND THREE HUNDRED TWENTY NINE DOLLARS AND THREE CENTS ($749,925,329.03)
plus any accrued and unpaid interest thereon.

 

1.                                       Demand
Right; Payment of Note.  Lender may
demand at any time and from time to time in whole or in part the payment of the
principal amount outstanding and all accrued and unpaid interest on this
Note.  All payments shall be made in
immediately available funds.

 

2.                                       Interest;
Default Rate.  The principal amount
outstanding under this Note shall bear simple interest at the rate of 1.6% per
annum.  Any amounts outstanding under
this Note that shall have been demanded by the Lender hereto and not paid shall
bear simple interest from and after the date of such applicable demand at the
rate of the lesser of (a) 4% and (B) the maximum annual rate permitted by law.

 

3.                                       Prepayment.  Maker may prepay the principal amount
outstanding under this Note at any time, in whole or in part, together with all
accrued and unpaid interest thereon and any other sums due and owing hereunder,
on any business day, without payment of a premium or penalty.

 

4.                                       Application
of Payments.  All payments made on
this Note may be applied, at the option of Lender, first in payment of any
costs or expenses of Lender due hereunder, then in payment of any late charges
due hereunder, then in payment of any accrued and unpaid interest due
hereunder, and any balance shall be applied in payment of the outstanding
principal balance of this Note.   Each
payment tendered to Lender on this Note shall be payable in lawful money of the
United States which shall be legal tender for public and private debts at the
time of payment.

 

5.                                       Waivers.
Maker waives presentment, demand, protest, notice of dishonor and all other
notices of every kind and nature to which Maker would otherwise be entitled
under applicable law.  To the fullest
extent permitted by law, Maker waives the benefit of all laws and rules of law
intended for his protection or advantage as a party liable on this Note or
providing for its release or discharge from liability upon the failure or
refusal of Lender to perform certain acts, including, but not limited to, any
law and any rule of law requiring Lender to institute any

 

 

suit or action on this Note,
but excluding any statute of limitations applicable to the collection or
enforcement of this Note.

 

6.                                       Acceleration;
Remedies.  Upon the failure by Maker
to make any payment required hereunder, the entire principal amount
outstanding, and all accrued and unpaid interest, and all other sums required
under this Note shall become immediately due and payable, without presentment,
demand, protest or notice of any kind. 
In addition, (i) if Maker (1) commences any proceeding, under any law,
now or hereafter in force, relating to bankruptcy, insolvency, reorganization,
liquidation, or otherwise to the relief of debtors, (2) makes any assignment
for the benefit of creditors or a composition or similar arrangement with such
creditors, or (3) appoints a receiver, trustee or similar judicial officer or
agent to take charge of or liquidate any of its property or assets; or (ii)
upon the commencement against Maker of any involuntary proceeding of the kind
described in clause (i), the entire principal amount outstanding, and all
accrued and unpaid interest, and all other sums required under this Note shall
become immediately due and payable without presentment, demand, protest or
notice of any kind.

 

7.                                       Additional
Provisions.

 

(a)                                  This
Note shall be governed by and construed and enforced in accordance with the
laws (without giving effect to the conflict of law principles thereof) of the
State of New York.

 

(b)                                 No
amendment, modification, termination, or waiver of any term or condition of
this Note nor any consent by Lender to the departure by Maker from any
provision of this Note shall be effective unless made in writing and signed by
Lender, and any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it is given.  No failure on the part of Lender to
exercise, and no delay of Lender in exercising, any right, power, or remedy
under this Note shall be construed as a waiver of the right to exercise the
same or any other right at any time.

 

(c)                                  Any determination that any provision of this
Note or any application thereof is invalid, illegal, or unenforceable in any
respect in any instance shall not affect the validity, legality, or
enforceability of such provision in any other instance, or the validity,
legality, or enforceability of any other provision of this Note.

 

(d)                                 The
covenants, terms and conditions of this Note shall be binding upon the
successors and assigns of Maker and shall inure to the benefit of Lender, its
successors and assigns.

 

(e)                                  Maker
and Lender intend to comply at all times with applicable usury laws.  If at any time such laws would render
usurious any amounts due under this Note under applicable law, then it is
Maker’s and Lender’s express intention that Maker not be required to pay
interest on this Note at a rate in excess of the maximum lawful rate, that the
provisions of this Section 7(e) shall control over all other provisions of this
Note which may be in apparent conflict hereunder, that such excess amount shall
be immediately credited to the principal balance of this Note, and the
provisions hereof shall immediately be reformed and the

 

2

 

amounts thereafter decreased,
so as to comply with the then applicable usury law, but so as to permit the
recovery of the fullest amount otherwise due under this Note.

 

3

 

IN WITNESS
WHEREOF, Maker has signed and delivered this Note as of the date first written
above.

 

 

	
   

  	
  MAKER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRANSDIGM
  HOLDING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name:

  	
  W. Nicholas
  Howley

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
						

 

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