Document:

EXHIBIT 10.1

 

 

 

STOCKHOLDERS’ AGREEMENT

 

 

 

Dated as of July 22, 2003

 

 

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  Restrictions on Transfer of Common Stock.

  	
  2

  
	
   

  	
  1.1.

  	
  General Restrictions on Transfer.

  	
  2

  
	
   

  	
  1.2.

  	
  Permitted Transferees.

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Tag-Along and Drag-Along Rights.

  	
  5

  
	
   

  	
  2.1.

  	
  Tag-Along
  Rights.

  	
  5

  
	
   

  	
  2.2.

  	
  Drag-Along Rights.

  	
  6

  
	
   

  	
  2.3.

  	
  Per Share Purchase Price

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Additional Offerings.

  	
  8

  
	
   

  	
  3.1.

  	
  Additional Offerings; Generally

  	
  8

  
	
   

  	
  3.2.

  	
  Exercise of Purchase Rights

  	
  9

  
	
   

  	
  3.3.

  	
  Sale of Unpurchased Securities

  	
  9

  
	
   

  	
  3.4.

  	
  Future Additional Offerings

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Sales to Third Parties.

  	
  9

  
	
   

  	
  4.1.

  	
  General

  	
  9

  
	
   

  	
  4.2.

  	
  Right of First Refusal.

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Election of Directors.

  	
  12

  
	
   

  	
  5.1.

  	
  Board
  Make-up

  	
  12

  
	
   

  	
  5.2.

  	
  Post Initial Public Offering Board Seats

  	
  13

  
	
   

  	
  5.3.

  	
  Replacement Directors

  	
  13

  
	
   

  	
  5.4.

  	
  Committees; Subsidiaries.

  	
  14

  
	
   

  	
  5.5.

  	
  Irrevocable
  Proxy

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Termination of Rights and Obligations Under
  Certain Sections

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Legends

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Covenants, Representation and Warranties.

  	
  16

  
	
   

  	
  8.1.

  	
  New Management Stockholders

  	
  16

  
	
   

  	
  8.2.

  	
  Information Rights

  	
  16

  
	
   

  	
  8.3.

  	
  No Other Arrangements or Agreements

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Amendment, Modification, Supplement and
  Waiver

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Parties.

  	
  18

  
	
   

  	
  10.1.

  	
  Assignment Generally

  	
  18

  
	
   

  	
  10.2.

  	
  Termination

  	
  18

  
	
   

  	
  10.3.

  	
  Agreements to Be Bound.

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Recapitalizations, Exchanges, etc.
  Affecting the Shares

  	
  19

  

 

 

	
  12.

  	
  Transfer of Common Stock

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Further Assurances

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Governing
  Law

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Invalidity, of Provision

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Notices

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Headings; Execution in Counterpart

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Entire
  Agreement

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Injunctive
  Relief

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  Defined
  Terms

  	
  21

  
	
   

  	
  20.1.

  	
  Affiliate

  	
  21

  
	
   

  	
  20.2.

  	
  Closing
  Date

  	
  21

  
	
   

  	
  20.3.

  	
  Exchange
  Act

  	
  21

  
	
   

  	
  20.4.

  	
  Indenture

  	
  22

  
	
   

  	
  20.5.

  	
  Majority Management Stockholders

  	
  22

  
	
   

  	
  20.6.

  	
  Options

  	
  22

  
	
   

  	
  20.7.

  	
  Permitted Assignee

  	
  22

  
	
   

  	
  20.8.

  	
  Person

  	
  22

  
	
   

  	
  20.9.

  	
  Roll-Over
  Shares

  	
  22

  
	
   

  	
  20.10.

  	
  Transfer

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  Irrevocable Proxy.

  	
  22

  
	
   

  	
  21.1.

  	
  Grant
  of Proxy

  	
  22

  
	
   

  	
  21.2.

  	
  Effective Time of Proxy

  	
  23

  
					

 

ii

 

STOCKHOLDERS’
AGREEMENT

 

This STOCKHOLDERS’ AGREEMENT (this “Agreement”), dated as of
July 22, 2003, by and among TD Holding Corporation, a Delaware corporation
(“Holdings”), Warburg Pincus Private Equity VIII, L.P., a Delaware
limited partnership (“Warburg Pincus”), the other institutional
investors whose names and addresses are set forth from time to time on Schedule I
hereto (such institutional investors, together with any Persons who become
parties to this Agreement pursuant to the terms of Section 10.3(b) hereof,
are hereinafter collectively referred to as the “Other Investors”; the
Other Investors and Warburg Pincus are hereinafter collectively referred to as
the “Institutional Investors”), and those employees of TransDigm Inc.
and certain of its subsidiaries (collectively, “TransDigm”) whose names
and addresses are set forth from time to time on Schedule II hereto
(such employees, together with any Persons who become parties to this Agreement
pursuant to Section 8.1 hereof and each of their respective Permitted
Transferees, are hereinafter collectively referred to as the “Management
Stockholders”).  Schedule I
and Schedule II hereto shall be updated from time to time to
include each Management Stockholder or Other Investor, as the case may be, who
becomes a party to this Agreement after the date hereof pursuant to the terms
hereof.  The Institutional Investors and
the Management Stockholders are hereinafter collectively referred to as the “Stockholders.”  Capitalized terms used herein without
definition elsewhere in this Agreement are defined in Section 20 hereof.

 

RECITALS

 

WHEREAS, on June 6, 2003, TD Acquisition Corporation, a Delaware
corporation and a wholly-owned subsidiary of Holdings (“TD Acquisition”),
entered into an Agreement and Plan of Merger (the “Merger Agreement”)
with TransDigm Holding Company, a Delaware corporation (“TransDigm Holding”),
pursuant to which TD Acquisition shall be merged with and into TransDigm
Holding, with TransDigm Holding as the surviving corporation (the “Merger”);

 

WHEREAS, immediately prior to the consummation of the transactions
contemplated by the Merger Agreement, certain Management Stockholders held certain
options to purchase shares of common stock, par value $0.01 per share, of
TransDigm Holding (the “Pre-Merger Options”);

 

WHEREAS, prior to or contemporaneously with the execution of this
Agreement, each Management Stockholder who held Pre-Merger Options entered into
a letter agreement with Warburg Pincus (each, a “Roll-Over Agreement”)
pursuant to which each such Management Stockholder agreed that certain
Pre-Merger Options having an aggregate Net Value (as such term is defined in
the Merger Agreement) specified in such Management Stockholder’s Roll-Over
Agreement shall not be cancelled in connection with the Merger (the “Roll-Over
Equity”), but rather, at the Effective Time (as such term is defined in the
Merger Agreement), such Management Stockholder’s Roll-Over Equity shall be
converted (a) partially into a fully vested option (collectively, the “Roll-Over
Options”) to purchase shares of common stock, par value $0.01 per share, of
Holdings (the “Common Stock” and together with any shares of Common Stock
acquired by any party hereto after the date hereof, whether upon exercise of
Options or otherwise, the “Shares”) and (b) partially into a
proportionate interest in certain Deferred Compensation Plans of Holdings (as
the same may be amended from time to time, the “Deferred Compensation Plans”);

 

 

WHEREAS, in addition to being subject to the terms and conditions set
forth in this Agreement, the Roll-Over Options and the Roll-Over Shares shall
be subject to the terms and conditions of the Roll-Over Agreement to which such
Management Stockholder is a party and, in the case of the Roll-Over Options,
the terms and conditions of the TD Holding Corporation 2003 Stock Incentive
Plan and agreements delivered thereunder (as the same may be amended from time
to time, the “Plan”);

 

WHEREAS, at the Effective Time, and from time to time thereafter, and
subject to the terms of Section 8.1 hereof, Holdings has granted or shall
grant, as the case may be, to certain Management Stockholders, additional
options to purchase shares of Common Stock pursuant to the terms of the Plan
and Stock Option Agreement to be entered into between Holdings and such
Management Stockholder;

 

WHEREAS, the Management Stockholders, Warburg Pincus and Holdings are
parties to that certain Management Stockholders’ Agreement, dated as of the
date hereof, providing for certain put, call and other rights relating to the
securities of Holdings held by the Management Stockholders (the “Management
Stockholders’ Agreement”);

 

WHEREAS, in connection with the consummation of the transactions
contemplated by the Merger Agreement, the Institutional Investors have entered
into a Subscription and Note Purchase Agreement with Holdings (the “Subscription
Agreement”), pursuant to which Holdings has issued and sold to each
Institutional Investor and each Institutional Investor has purchased from
Holdings that number of shares of Common Stock and the aggregate principal
amount of Senior Unsecured Promissory Notes of Holdings (collectively, the “Debt
Securities”; the Debt Securities and the shares of Common Stock purchased
by the Institutional Investors pursuant to the terms of the Subscription
Agreement are hereinafter collectively referred to as the “Units”), in
each case, as set forth opposite the name of such Institutional Investor on Schedule I
thereto; and

 

WHEREAS, the Institutional Investors, the Management Stockholders and
Holdings desire to promote their mutual interests by agreeing to certain
matters relating to the operations of Holdings, the disposition and voting of
the shares of Common Stock and certain other matters set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and
obligations set forth in this Agreement, and to implement the foregoing, the
parties hereto agree as follows:

 

1.                                               Restrictions on Transfer of Common
Stock.

 

1.1.                                  General Restrictions on Transfer.

 

(a)                                         Prior
to the fifth anniversary of the date of this Agreement, no Shares owned by any
Management Stockholder nor any interest therein nor any rights relating thereto
may be Transferred by such Management Stockholder, except for Transfers of
Shares (i) to a Permitted Transferee or as otherwise expressly permitted
pursuant to Section 1.2, (ii) to Holdings (or a permitted assignee
thereof) pursuant to Section 1  or
Section 2 of the Management Stockholders’ Agreement, (iii) pursuant to
Section 2.1 or Section 2.2 hereof or (iv) authorized in writing by a
majority of the members of the Board of Directors of Holdings (the “Board”).  From

 

2

 

and
after the fifth anniversary of the date of this Agreement, in addition to the
Transfers of Shares permitted by the immediately preceding sentence hereof, a
Management Stockholder shall be permitted to Transfer Shares to a bonafide
third party purchaser, Holdings or Warburg Pincus, as the case may be, pursuant
to Section 4 hereof.

 

(b)                                        Prior
the fifth anniversary of the date of this Agreement, no Units owned by any
Instititutional Investor nor any interest therein nor any rights relating thereto
may be Transferred by such Institutional Investor, except for Transfers of
Units (i) to a Permitted Assignee, subject to compliance with
Section 10.3(b) hereof, (ii) pursuant to tag-along rights granted to such
Institutional Investor pursuant to Section 2.1 hereof, it being understood
that this clause (ii) shall not permit an Institutional Investor, absent the
prior written authorization of the Board, to sell Units pursuant to
Section 2.1 as a Selling Stockholder, (iii) pursuant to Section 2.2
hereof, (iv) authorized in writing by a majority of the members of the Board or
(v) by Warburg Pincus pursuant to Section 1.1(c) below.  From and after the fifth anniversary of the
date of this Agreement, and subject to the immediately following sentence
hereof, in addition to the Transfers of Units permitted by the immediately
preceding sentence hereof, an Institutional Investor shall be permitted to
Transfer Units to a bonafide third party purchaser, Holdings or Warburg Pincus,
as the case may be, pursuant to Section 4 hereof.  Without limiting the foregoing, each
Institutional Investor hereby acknowledges and agrees that it may not Transfer
all or any portion of the shares of Common Stock owned by it unless such Institutional
Investor is then Transferring a corresponding aggregate principal amount of
Debt Securities which, together with the portion of the shares of Common Stock
then being Transferred, comprises a Unit.

 

(c)                                        Notwithstanding
anything to the contrary contained in this Agreement, the provisions of Section 1.1(b),
Section 2.1 and Section 4 shall not apply to any Transfer of Units by
Warburg Pincus (i) made to an institutional investor, provided (x) such
Transfer is made within ninety (90) calendar days of the date of this
Agreement, (y) the price paid for any Units so Transferred shall be equal to
the price paid for a Unit by the Institutional Investors (other than Warburg
Pincus) pursuant to the terms of the Subscription Agreement plus an amount
equal to any accrued but unpaid interest in respect of the Units being
Transferred and (z) the transferree thereof agrees to be bound by the terms and
provisions of this Agreement pursuant to Section 10.3(b) hereof or (ii)
pursuant to Section 2.2; provided, however, with respect to
clause (i) immediately above, immediately after giving effect to any sale or
sales of Units during such ninety (90) calendar day period, Warburg Pincus
shall own, either directly or indirectly, at least fifty (50%) of the Units
then outstanding.

 

(d)                                        From
and after the date hereof until the fifth (5th) anniversary of the
date of this Agreement, Warburg Pincus, in its capacity as a member, shall not
Transfer any Percentage Interests (as such term is defined in the LLC Agreement
(as hereinafter defined)) of TD Co-Investors, LLC, a Delaware limted liability
company (the “LLC”); provided, however, nothing contained
in this Section 1.1(d) shall prevent Warburg Pincus from Transferring such
Percentage Interests to (i) a Permitted Assignee thereof or (ii) in accordance
with the terms of Section 12 of that certain Amended and Restated Limited
Liability Company Agreement of the LLC, dated as of July 15, 2003 (the “LLC
Agreement”), it being understood and agreed that that portion of
Section 12 of the LLC Agreement which permits Warburg Pincus, for a period
of ninety (90) calendar days’ following the effective date thereof, to sell a
portion of the Percentage

 

3

 

Interests
owned by it, shall not be amended, waived or otherwise modified without the
prior written consent of the Institutional Investors holding a majority of the
Units held by all Institutional Investors as of the date of such determination
(the “Majority Institutional Investors”).

 

1.2.                                  Permitted Transferees.

 

(a)                                         Trust,
Corporation, Partnership, etc. 
Subject to Section 10.3(a), a Management Stockholder may Transfer
any shares of Common Stock owned by him or her or any interest therein (i) for
estate-planning purposes of such Management Stockholder and with the prior
written consent of the Compensation Committee of the Board (the “Committee”),
which consent shall not be unreasonably withheld, to (x) a trust under which
the distribution of the shares of Common Stock Transferred thereto may be made
only to beneficiaries who are such Management Stockholder, his or her spouse,
his or her parents, members of his or her immediate family or his or her lineal
descendants (collectively, “Permitted Family Members”), (y) a
corporation the stockholders of which are only such Management Stockholder or
Permitted Family Members or (z) a partnership the partners of which are only
such Management Stockholder or Permitted Family Members or (ii) in case of the
death of a Management Stockholder, by will or by the laws of intestate
succession, to his or her executors, administrators, testamentary trustees,
legatees or beneficiaries (each such Person to which a Transfer is permitted
pursuant to clauses (i) and (ii) immediately above is hereinafter referred to
as a “Permitted Transferee” and collectively, as the “Permitted
Transferees”); provided, however, that in each such case, the
shares of Common Stock so Transferred shall be subject to all provisions of
this Agreement as though the transferring Management Stockholder were still the
holder of such shares.

 

(b)                                        Security
Agreements.  Subject to
Section 10.3(a), a Management Stockholder may pledge any or all of the
shares of Common Stock owned by him or her or grant a security interest therein
to secure indebtedness of such Management Stockholder owing to a bank or other
financial institution so long as such indebtedness and the related pledge
and/or securitiy interest were (i) previously approved in writing by the
Committee and (ii) incurred or granted, as the case may be, for the purpose of
paying all or part of the purchase or exercise price with respect to such
shares of Common Stock or for the purpose of refinancing indebtedness incurred
for such purpose; provided, however, that it shall be a condition
to the effectiveness of any Transfer pursuant to this Section 1.2(b) that
the transferee shall have acknowledged and agreed in writing that any interest
in any shares of Common Stock Transferred to such transferee pursuant to this
Section 1.2(b) shall only entitle such transferee to the proceeds from any
sale of such shares of Common Stock made in compliance with the terms of this
Agreement and any proceeds of any distribution to stockholders on account of
the shares of Common Stock so Transferred in any liquidation as a result of any
bankruptcy proceeding or the winding up of the affairs of Holdings, but in no
event shall any such Transfer entitle such transferee to title to such shares
of Common Stock or any other rights, including voting rights, incident
thereto.  Prior to the execution
thereof, the Management Stockholder shall provide Holdings with a copy of any
pledge or security agreements or other related financing agreements relating to
such Transfer and any such agreements shall be subject to, and acknowledge the
rights of, Holdings and the other

 

4

 

Stockholders
set forth herein and the rights of Holdings and Warburg Pincus set forth in the
Management Stockholders’ Agreement.

 

2.                                               Tag-Along and Drag-Along Rights.

 

2.1.                                  Tag-Along Rights.

 

(a)                                         Subject
to the other terms of this Section 2.1 and the terms of Sections 1.1(b)
and 1.1(c), no Institutional Investor shall be permitted to sell any Shares to
one or more third parties if such Shares, together with all other Shares
previously sold by such Institutional Investor to one or more third parties,
would represent more than five percent (5%) of the aggregate number of Shares
held by such Institutional Investor immediately after the Closing Date or, in
the case of Warburg Pincus, more than five (5%) of the aggregate number of
Shares held by it on the date that is ninety (90) calendar days after the
Closing Date (in each case, as adjusted to reflect any stock dividend, split,
reverse split, combination, recapitalization, reclassification of shares,
capital contributions or like event), unless each other Stockholder is offered
a right to participate in such sale for a purchase price per Share (computed in
accordance with Section 2.3 below and, in the case of options, warrants or
other convertible securities, less the exercise or purchase price thereof)
equal to the purchase price to be received by the Institutional Investor then
proposing to sell such Shares (the “Selling Stockholder”) and on other
terms and conditions not less favorable to such other Stockholder than those
applicable to the Selling Stockholder. 
Any Stockholder who, in accordance with the terms of Section 2.1(c)
below, notifies the Selling Stockholder that it desires to participate in any
such sale shall have the right to include in such sale an amount of Shares
equal to the amount of Shares the third party actually proposes to purchase
multiplied by a fraction, the numerator of which shall be the number of Shares
owned by such participating Stockholder (calculated by reference to the
aggregate number of Shares owned by such Stockholder, including, in the case of
a Management Stockholder, the aggregate number of Shares underlying vested
Options held by such Management Stockholder, in each case, at the time of such
sale), and the denominator of which shall be the aggregate number of Shares
owned by the Selling Stockholder and each other Stockholder (including in the
case of the Management Stockholders, the aggregate number of Shares underlying
vested Options held by the Management Stockholders participating therein)
exercising its rights under this Section 2.1(a) (the percentage resulting
from the foregoing fraction is hereinafter referred to, with respect to each
Institutional Investor, as the “Tag-Along Percentage”).  For the purposes of this Section 2.1, a
sale to a “third party” shall not include a sale to any Permitted Assignee or a
sale pursuant to an effective registration statement (a “Registration
Statement”) under the Securities Act of 1933, as amended (the “Securities
Act”).

 

(b)                                        No
Institutional Investor may sell all or any portion of the Shares owned by it
unless such Institutional Investor is then selling a corresponding aggregate
principal amount of Debt Securities which, together with the portion of the
Shares then being sold, comprises a Unit. 
In furtherance of the foregoing, in the event any Institutional Investor
is entitled to tag-along rights with respect to its Shares pursuant to
Section 2.1(a) above, such Institutional Investors shall have the
additional tag-along rights with respect to the Debt Securities held by it as
set forth in Section 2.1(d) below.

 

5

 

(c)                                        In
the event a Selling Stockholder is proposing to sell any Shares and, pursuant
to Section 2.1(a), the other Stockholders are entitled to participate in
such sale, such Selling Stockholder shall notify each other Stockholder
entitled to participate therein in writing of such proposed sale and its terms
and conditions.  Within fifteen (15)
business days of the date of such notice, each other Stockholder entitled to
participate therein shall notify such Selling Stockholder if it elects to
participate in such sale.  Any
Stockholder that fails to notify the Selling Stockholder within such fifteen
(15) business day period shall be deemed to have waived its rights hereunder
with respect to such sale. 
Notwithstanding anything contained in this Section 2.1 to the
contrary, in the event that all or a portion of the purchase price for the
Shares being purchased consists of securities and the sale of such securities
to a Stockholder entitled to participate therein would, by virtue of the fact
that such Stockholder is not an “accredited investor” (within the meaning of
Rule 501(a) under the Securities Act), require either a registration under the
Securities Act or the preparation of a disclosure document pursuant to
Regulation D under the Securities Act (or any successor regulation) or a
similar provision of any state securities law, then, at the option of the
Selling Stockholder, any one or more of such Stockholders may receive, in lieu
of such securities, the fair market value of such securities in cash, as
determined in good faith by the Committee.

 

(d)                                       With
respect to each Institutional Investor that elects to participate in a sale of
Shares pursuant to Section 2.1(a), such Institutional Investor shall be
entitled to include in such sale an aggregate principal amount of such
Institutional Investor’s Debt Securities equal to the product obtained by
multiplying (i) the aggregate principal amount of Debt Securities that the
third party is then proposing to purchase by (ii) such Institutional Investor’s
Tag-Along Percentage.

 

(e)                                        Notwithstanding
anything contained in this Section 2.1 to the contrary, and subject to the
terms of Section 1.1(c) hereof, each Insititutional Investor hereby
acknowledges and agrees that prior to initiating any sale of Units as a Selling
Stockholder pursuant to this Section 2.1, such Institutional Investor
shall be required to comply with the right of first refusal provisions set forth
in Section 4.2 hereof.

 

2.2.                                  Drag-Along Rights.

 

(a)                                         If
Warburg Pincus is proposing to sell to one or more third parties in excess of
fifty percent (50%) of the number of Shares owned by it on the date that is
ninety (90) calendar days after the Closing Date, Warburg Pincus shall have the
right to require each other Stockholder to sell, in accordance with the
immediately following sentence hereof, all or a portion of such other
Stockholder’s Shares (including, for these purposes, any warrants, options or
other convertible securities to acquire Shares) in such sale.  In the event Warburg Pincus requires the
other Stockholders to sell all or a portion of their Shares (including, for
these purposes, any warrants, options or other convertible securities to acquire
Shares) pursuant to this Section 2.2(a) such other Stockholders shall be
required to include in such sale an amount of Shares (including, for these
purposes, any warrants, options or other convertible securities to acquire
Shares) equal to the aggregate number of Shares owned by such other Stockholder
as of the date of the proposed sale (including, for these purposes, any
warrants, options or other convertible securities to acquire Shares) multiplied
by a fraction, the numerator of which shall be the number of Shares that
Warburg Pincus is proposing to sell in such sale, and the denominator

 

6

 

of which
is the aggregate number of Shares owned by Warburg Pincus (including, for these
purposes, any warrants, options or other convertible securities to acquire
Shares owned by Warburg Pincus), in each case, as of the date of the proposed
sale (the percentage resulting from the foregoing fraction is hereinafter
referred to as the “Drag-Along Percentage”).  A Stockholder required to sell any Shares (including, for these
purposes, any warrants, options or other convertible securities to acquire
Shares) pursuant to this Section 2.2(a), shall be entitled to receive in
exchange therefor the purchase price per Share received by Warburg Pincus with
respect to its Shares in such transaction (computed in accordance with
Section 2.3 below and, in the case of options, warrants or other
convertible securities, less the exercise or purchase price thereof), and shall
otherwise participate in such transaction on other terms and conditions not
less favorable to such other Stockholder than those applicable to Warburg
Pincus and, subject to Section 2.2(c) below, shall receive the same type
of consideration received by Warburg Pincus in such transaction.  In the event that any such transaction
involves the merger of Holdings with or into a third party or, in the event
that in lieu of the sale of Shares, the transaction involves the sale by Holdings
of all or substantially all of Holdings’ assets to any third party, or if such
transaction otherwise requires the vote of Holdings’ stockholders, each
Stockholder hereby agrees to vote all Shares then owned by such Stockholder in
favor of such transaction and to otherwise to take all steps necessary to
enable him, her or it to comply with the provisions of this Section 2.2(a)
to facilitate any such transaction.  For
the purposes of this Section 2.2, a sale to a “third party” shall not
include a sale to any Permitted Assignee or a sale pursuant to a Registration
Statement.

 

(b)                                        To
exercise the rights granted under Section 2.2(a), Warburg Pincus shall
give each other Stockholder a written notice containing (i) the name and
address of the proposed transferee(s) and (ii) the proposed purchase price with
respect to the Shares, terms of payment and other material terms and conditions
of the offer of the proposed transferee(s). 
Each Stockholder shall thereafter be obligated to sell its Shares
(including, for these purposes, any warrants, options or other convertible
securities to acquire Shares) to the proposed transferee(s) or vote its Shares
in favor of the proposed transaction, as the case may be, in accordance with
Section 2.2(a).

 

(c)                                        Notwithstanding
anything contained in this Section 2.2 to the contrary, in the event that
all or a portion of the purchase price for the Shares being purchased consists
of securities and the sale of such securities to a Stockholder entitled to
participate therein would, by virtue of the fact that such Stockholder is not
an “accredited investor” (within the meaning of Rule 501(a) under the
Securities Act), require either a registration under the Securities Act or the
preparation of a disclosure document pursuant to Regulation D under the
Securities Act (or any successor regulation) or a similar provision of any
state securities law, then, at the option of Warburg Pincus, any one or more of
such Stockholders may receive, in lieu of such securities, the fair market
value of such securities in cash, as determined in good faith by the Committee.

 

(d)                                        With
respect to each Institutional Investor that is required to participate in any
sale of Shares pursuant to this Section 2.2, such Institutional Investor
shall be required to include in such sale an aggregate principal amount of such
Institutional Investor’s Debt Securities equal to the product obtained by
multiplying (i) the aggregate principal amount of Debt Securities owned by such
Institutional Investor by (ii) the Drag-Along Percentage.

 

7

 

2.3.                                  Per Share Purchase Price.  In the event that (a) a Stockholder
exercises its tag-along rights pursuant to Section 2.1 above or (b)
Warburg Pincus requires the other Stockholders to sell all or a portion of
their Shares pursuant to Section 2.2 above, the per Share purchase price
for purposes of Section 2.1 and Section 2.2 shall be the per Share
price received by the Selling Stockholder or Warburg Pincus, as the case may
be, for the Shares that such Stockholder is selling in such transaction.  Notwithstanding the foregoing, if, in
connection with any such transaction, in addition to selling Shares, the
Selling Stockholder or Warburg Pincus, as the case may be, is also selling all
or a portion of such Stockholder’s Debt Securities, then, for purposes of
determining the per Share price, any such Debt Securities shall be valued at
the principal amount thereof plus all accrued and unpaid interest thereon
through the date of the closing of such transaction, and any additional amounts
being paid to such Stockholder in connection with any such transaction shall be
attributed to such Stockholder’s Shares and the per Share purchase price shall
be calculated accordingly.

 

3.                                               Additional Offerings.

 

3.1.                                  Additional Offerings; Generally.  If at any time after the date hereof,
Holdings proposes to issue equity securities of any kind (the term “equity
securities” shall include for these purposes any warrants, options or other
rights to acquire equity securities and debt securities convertible into equity
securities, but shall not include the issuance of any securities (i) to the
public in a firm commitment underwriting pursuant to a Registration Statement,
(ii) pursuant to the acquisition of another Person by Holdings or any
subsidiary thereof (as consideration for the acquisition and not for the
purpose of financing an acquisition), whether by purchase of stock, merger,
consolidation, purchase of all or substantially all of the assets of such
Person or otherwise, (iii) pursuant to the Plan or another employee stock
option plan, stock bonus plan, stock purchase plan or other management equity
program approved by a majority of the members of the Board, (iv) pursuant to
the terms of the Deferred Compensation Plans or (v) in the form of warrants
issued to lessors of property and/or equipment or to financial institutions or
related entities in connection with commercial credit or financing or other
similar arrangements which are approved by a majority of the members of the
Board), then, as to (x) each Institutional Investor (other than Warburg Pincus)
who owns at least fifty percent (50%) of the aggregate number of shares of
Common Stock owned by such Institutional Investor on the Closing Date or, in
the case of Warburg Pincus, at least fifity percent (50%) of the aggregate
number of shares of Common Stock owned by Warburg Pincus on the date that is
ninety (90) calendar days after the Closing Date, and (y) each Management
Stockholder who owns more than one percent (1%) of the shares of Common Stock
on a fully diluted basis (assuming the exercise of all outstanding Options then
held by such Management Stockholder), in each case, measured as of the date of
the proposed issuance (each such Person who is referred to in clauses (x) and
(y) immediately above is hereinafter referred to, for purposes of this
Section 3, as a “Participating Stockholder” and collectively, such
Persons are referred to in this Section 3 as the “Participating
Stockholders”), Holdings shall:

 

(a)                                         give
written notice (the “Subscription Right Notice”) setting forth in
reasonable detail (i) the designation and all of the terms and provisions of
the securities proposed to be issued (the “Proposed Securities”),
including, where applicable, the voting powers, preferences and relative
participating, optional or other special rights, and the qualification,
limitations or restrictions thereof and interest rate and maturity; (ii) the

 

8

 

price and other terms of the proposed sale of such
securities; and (iii) the amount of such securities proposed to be issued; and

 

(b)                                        offer
to issue to each Participating Stockholder a portion of the Proposed Securities
equal to a percentage determined by dividing (x) the number of shares of Common
Stock owned by such Participating Stockholder plus the number of shares of
Common Stock issuable to such Participating Stockholder, assuming conversion in
full of any convertible securities, including Options, then held by such
Participating Stockholder, by (y) the total number of shares of Common Stock
then outstanding, including for purposes of this calculation, all shares of
Common Stock issuable upon conversion in full of any then outstanding
convertible securities, including Options.

 

3.2.                                  Exercise of Purchase Rights.  Each Participating Stockholder must exercise
its purchase rights hereunder within twenty (20) business days after receipt of
the Subscription Right Notice.  If all
of the Proposed Securities offered to the Participating Stockholders are not
fully subscribed by such Participating Stockholders, the remaining Proposed
Securities will be reoffered to the Participating Stockholders purchasing their
full allotment upon the terms set forth in this Section 3, until all such
Proposed Securities are fully subscribed for or until all such Participating
Stockholders have subscribed for all such Proposed Securities which they desire
to purchase, except that such Participating Stockholders must exercise their
purchase rights within ten (10) business days after receipt of all such reoffers.  To the extent that Holdings offers two or
more securities in units, the Participating Stockholders must purchase such
units as a whole and will not be given the opportunity to purchase only one of
the securities making up such unit.

 

3.3.                                  Sale of Unpurchased Securities.  Upon the expiration of the offering periods
described above, Holdings will be free to sell such Proposed Securities that
the Participating Stockholders have not elected to purchase during the ninety
(90) calendar day period immediately following such expiration on terms and
conditions no more favorable to the purchasers thereof than those offered to
the Participating Stockholders.  Any
Proposed Securities offered or sold by Holdings after such ninety (90) calendar
day period must be reoffered to the Participating Stockholders pursuant to this
Section 3.

 

3.4.                                  Future Additional Offerings.  The election by a Participating Stockholder
not to exercise its subscription rights under this Section 3 in any one
instance shall not affect its right (other than in respect of a reduction in
its percentage holdings) as to any subsequent proposed issuance.  Any sale of such securities by Holdings
without first giving the Participating Stockholders the rights described in
this Section 3 shall be void and of no force and effect.

 

4.                                               Sales to Third Parties.

 

4.1.                                  General. 
Except as otherwise expressly provided in Section 1.1 hereof, prior
the fifth anniversary of the date of this Agreement, no Shares or Units owned
by any Stockholder nor any interest therein nor any rights relating thereto may
be sold by such Stockholder.  At any
time after the fifth anniversary of the Closing Date, a Stockholder may sell
his, her or its Shares or Units, as the case may be, to a third party, provided
that such sale is made in compliance with the provisions of Section 4.2,
Section 10.3 and, if applicable, Section 2.1 hereof.

 

9

 

4.2.                                  Right of First Refusal.

 

(a)                                         Procedure.  If a Stockholder who is entitled to sell
Shares or Units, as the case may be, to third parties pursuant to
Section 4.1 (the “Offering Stockholder”) desires to accept a bona
fide offer or offers from a third party or parties to purchase any Shares or
Units, or if such Stockholder otherwise desires to sell any Shares or Units,
then prior to selling any such Shares or Units to such third party or parties
such Offering Stockholder shall deliver to Holdings and Warburg Pincus a letter
signed by such Offering Stockholder setting forth:

 

(i)                                           the
name of the third party or parties;

 

(ii)                                      the
prospective purchase price per Share or per Unit, as the case may be;

 

(iii)                                 all
material terms and conditions contained in the offer of the third party or
parties; and

 

(iv)                                    the
Offering Stockholder’s offer to sell to Holdings or, in the event Holdings
determines not to purchase such Shares or Units, to Warburg Pincus, all (but
not less than all) of the Shares or Units that such Offering Stockholder is
then proposing to sell (the Shares or Units that such Offering Stockholder is
then proposing to sell are referred to in this Section 4.2 as the “Subject
Shares”), for a purchase price per Share or Unit, as the case may be, and
on other terms and conditions not less favorable to Holdings or Warburg Pincus,
as the case may be, than those contained in the offer of the third party or
parties (any such offer made by an Offering Stockholder is hereinafter referred
to as an “Offer”).

 

(b)                                        Acceptance
of the Offer.

 

(i)                                           Within
twenty (20) business days after the receipt of the Offer described in
Section 4.2(a) (the “Holdings Option Period”), Holdings may, at its
option, elect to purchase all, but not less than all, of the Subject
Shares.  Holdings shall give notice of
its intention to exercise, or that it does not intend to exercise, its right of
first refusal hereunder, to the Offering Stockholder within the Holdings Option
Period.  Failure by Holdings to give
notice of its intention to exercise its right of first refusal hereunder within
the Holdings Option Period shall be deemed an election not to exercise such
right of first refusal.

 

(ii)                                      In
the event that Holdings does not exercise (or is deemed to have not exercised)
its right of first refusal to purchase the Subject Shares within the Holdings
Option Period or Holdings revokes its election to purchase the Subject Shares
in accordance with Section 4.2(d) below, the Offering Stockholder shall
deliver to Warburg Pincus a written notice to the effect that Holdings did not
exercise its right of first refusal to purchase the Subject Shares or that
Holdings revoked its election to purchase the Subject Shares, as the case may
be.  In such event, Warburg Pincus shall
have the right to purchase all, but not less than all, of the Subject Shares by
giving written notice thereof to the Offering Stockholder and to Holdings
within ten (10) business days after receipt of written notice from the Offering
Stockholder described in the immediately preceding

 

10

 

sentence (the “Warburg
Pincus Option Period”).  Failure by
Warburg Pincus to give notice of its intention to exercise its right of first
refusal hereunder within the Warburg Pincus Option Period shall be deemed an
election by Warburg Pincus not to exercise its right of first refusal.

 

(c)                                        Purchase
Price.  The aggregate purchase price
for the Subject Shares shall be the aggregate purchase price offered to be paid
by the prospective third party purchaser in respect of such Shares or Units, as
the case may be, as described in the Offer, which price shall be paid in cash
or, if so provided in the Offer, cash plus deferred payments of cash in the
same proportions and with the same terms of deferred payment as therein set
forth.

 

(d)                                        Consideration
Other Than Cash.  If the Offer is
for consideration other than cash or cash plus deferred payments of cash,
Holdings or Warburg Pincus, as the case may be (such purchasing party is
hereinafter referred to as the “Purchaser”) shall pay the cash
equivalent of such other consideration. 
If the Offering Stockholder and the Purchaser cannot agree on the amount
of such cash equivalent within ten (10) business days after the beginning of
the Holdings Option Period or the Warburg Pincus Option Period, as the case may
be, any of such parties may, by three (3) business days’ written notice to the
other, initiate appraisal proceedings under Section 4.2(e) for
determination of the cash equivalent. 
The Holdings Option Period and the Warburg Pincus Option Period, as
applicable, shall automatically be extended during the period in which an
appraisal is conducted pursuant to Section 4.2(e) below.  A Purchaser may give written notice to the
Offering Stockholder revoking an election to purchase the Subject Shares within
ten (10) calendar days after determination of the appraised value, if it
chooses not to purchase the Subject Shares.

 

(e)                                        Appraisal
Procedure.  If any party shall
initiate an appraisal procedure to determine the amount of the cash equivalent
of any consideration for Subject Shares under Section 4.2(d), then the
Offering Stockholder, on the one hand, and the Purchaser, on the other hand,
shall each promptly appoint as an appraiser an individual who shall be a member
of a nationally-recognized investment banking firm.  Each appraiser shall, within thirty (30) calendar days of appointment,
separately investigate the value of the consideration for the Subject Shares as
of the proposed transfer date and shall submit a notice of an appraisal of that
value to the Offering Stockholder and the Purchaser.  Each appraiser shall be instructed to determine such value
without regard to income tax consequences to the Offering Stockholder as a
result of receiving cash rather than other consideration.  If the appraised values of such
consideration (the “Earlier Appraisals”) vary by ten percent (10%) or
less, measured from the lower appraisal, the average of the two appraisals on a
per share basis shall be controlling as the amount of the cash equivalent.  If the appraised values vary by ten percent
(10%) or more, measured from the lower appraisal, the appraisers shall, within
ten (10) business days of the submission of the last appraisal, appoint a third
appraiser who shall be a member of a nationally recognized investment banking
firm.  The third appraiser shall, within
thirty (30) calendar days of his appointment, appraise the value of the
consideration for the Subject Shares (without regard to the income tax
consequences to the Offering Stockholder as a result of receiving cash rather
than other consideration) as of the proposed transfer date and submit notice of
his appraisal to the Offering Stockholder and the Purchaser.  The value determined by the third appraiser
shall be controlling as to the amount of the cash equivalent unless the value
is greater than the two Earlier Appraisals, in which case the higher of the two
Earlier Appraisals will control, and unless the

 

11

 

value is
lower than the two Earlier Appraisals, in which case the lower of the two
Earlier Appraisals will control.  If any
party fails to appoint an appraiser or if one of the two initial appraisers
fails after appointment to submit its appraisal within the required period, the
appraisal submitted by the remaining appraiser shall be controlling.  The Offering Stockholder and the Purchaser
shall each bear the cost of its respective appointed appraiser.  The cost of the third appraisal shall be
shared one-half by the Offering Stockholder and one-half by the Purchaser.

 

(f)                                          Effecting
Sales.  If the Offer to sell is
neither fully accepted by Holdings or Warburg Pincus in accordance with the
terms of this Section 4.2, the Offering Stockholder may, subject to
compliance with Section 2.1 hereof, sell to such third party or parties
all (but not less than all) of the Subject Shares, for the purchase price and
on the other terms and conditions contained in the Offer; provided, however,
that if the Offering Stockholder shall fail to consummate such sale within
sixty (60) calendar days following the expiration of the Holdings Option Period
or the Warburg Pincus Option Period, as applicable, or, in the event Warburg
Pincus or Holdings revokes its election to purchase the Subject Shares pursuant
to Section 4.2(d), within sixty (60) calendar calendar days of the date of
such notice of revocation, such Subject Shares shall again become subject to
all the restrictions of this Section 4; provided, further  however,
if the Offer to sell is neither fully accepted by Holdings or Warburg Pincus,
the effectiveness of the sale of the Subject Shares to a third party shall be
subject to the transferee thereof agreeing in writing, pursuant to
Section 10.3 hereof, to be bound by the terms and provisions of this
Agreement in the same manner and with same rights and obligations as the
Offering Stockholder, except as provided in said Section 10.3 hereof.  If Holdings or Warburg Pincus, as the case
may be, shall have accepted such Offer, the closing of the purchase and sale
pursuant to such acceptance shall take place at such location as shall be
mutually agreeable between the parties and the purchase price, to the extent
comprised of cash, shall be paid at the closing, and cash equivalents and
documents evidencing any deferred payments of cash permitted pursuant to
Section 4.2(d) above shall be delivered at the closing.  At the closing, the Offering Stockholder
shall deliver to the Purchaser the certificates or other instruments evidencing
the Subject Shares to be conveyed, duly endorsed and in negotiable form with
all the requisite documentary stamps affixed thereto.

 

(g)                                        Limitations.  The provisions of this Section 4 shall
not apply to sales of Shares by (i) any Management Stockholder pursuant to
Sections 1 or 2 of the Management Stockholders’ Agreement, (ii) any Stockholder
exercising its tag-along rights pursuant to Section 2.1 hereof, (iii) any
Stockholder pursuant to 2.2 hereof or (iv) sales by Warburg Pincus pursuant to
Section 1.1(c) hereof.

 

5.                                               Election of Directors.

 

5.1.                                  Board Make-up. 
As of the date hereof (after giving effect to the transactions
contemplated by the Merger Agreement), the Board shall consist of Kewsong Lee,
David Barr, Kevin Kruse, W. Nicholas Howley, Douglas Peacock and Michael
Graff.  From and after the date hereof,
and until the time that Holdings completes its Initial Public Offering (as defined
below), the Stockholders and Holdings shall take all action within their
respective power, including, but not limited to, the voting of all shares of
Common Stock owned by them, required to cause the Board to consist of (a) so
long as the LLC, owns at least fifty (50%) of the aggregate number of Units
owned by it on the Closing Date, at least one (1) representative designated by

 

12

 

the LLC (the “LLC Director”)
and (b) that number of representatives designated by Warburg Pincus such that
the number of representatives designated by Warburg Pincus and the LLC would
constitute a majority of the members of the Board (the directors appointed to
the Board by Warburg Pincus pursuant to this clause (b) are hereinafter
collectively referred to as the “Warburg Directors”).

 

5.2.                                  Post Initial Public Offering
Board Seats.  From the date on
which Holdings completes an underwritten public offering for shares of Common
Stock pursuant to a registration under the Securities Act (an “Initial
Public Offering”), and for as long as Warburg Pincus together with any
Affiliate thereof beneficially owns (within the meaning of Rule 13d-3 under the
Exchange Act) at least twenty-five (25%) of the outstanding shares of Common
Stock, Holdings will nominate and use its best efforts to have elected to the
Board that number of individuals designated by Warburg Pincus that is equal to
the greater of (i) the product obtained by multiplying (x) the number of
members of the then existing Board by (y) the percentage of the outstanding
shares of Common Stock that is beneficially owned by Warburg Pincus and its
Affiliates (computed in accordance with Rule 13d-3 under the Exchange Act) as
of the date of the nomination of directors to the Board (the “Warburg Pincus
Ownership Percentage”) and (ii) three (3); provided, in the case of
clause (i) immediately above, the product of (x) and (y) therein shall be
rounded up to the next whole number. 
From the date on which Holdings completes such Initial Public Offering
and for as long as Warburg Pincus together with any Affiliate thereof
beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act) at
least ten percent (10%) but less than twenty-five percent (25%) of the
outstanding Shares, Holdings will nominate and use its best efforts to have
elected to the Board that number of individuals designated by Warburg Pincus
that is equal to the greater of (i) the product obtained by multiplying (x) the
number of members of the then existing Board by (y) the Warburg Pincus
Ownership Percentage and (ii) two (2); provided, in the case of clause
(i) immediately above, the product of (x) and (y) therein shall be rounded up
to the next whole number.  From the date
on which Holdings completes such Initial Public Offering and for as long as
Warburg Pincus together with any Affiliate thereof beneficially owns (within
the meaning of Rule 13d-3 under the Exchange Act) at least five percent (5%)
but less than ten percent (10%) of the outstanding Shares, Holdings will
nominate and use its best efforts to have elected to the Board that number of
individuals designated by Warburg Pincus that is equal to the greater of (i)
the product obtained by multiplying (x) the number of members of the then
existing Board by (y) the Warburg Pincus Ownership Percentage and (ii) one (1);
provided, in the case of clause (i) immediately above, the product of
(x) and (y) therein shall be rounded up to the next whole number.

 

5.3.                                  Replacement Directors.  Prior to the Initial Public Offering, in the
event that the LLC Director or any Warburg Director (each, a “Withdrawing
Director”) designated in the manner set forth in Section 5.1 hereof is
unable to serve, or once having commenced to serve, is removed or withdraws
from the Board, such Withdrawing Director’s replacement (the “Substitute
Director”) will be designated by the stockholder of Holdings that has the
right to designate such director in accordance with Section 5.1
above.  The Stockholders and Holdings
agree to take all action within their respective power, including, but not
limited to, the voting of all shares of Common Stock owned by them (i) to cause
the election of such Substitute Director promptly following his or her
nomination pursuant to this Section 5.3 or (ii) upon the written request
of the stockholder of Holdings that has the right to designate such director to
the Board

 

13

 

in
accordance with Section 5.1 above, to remove, with or without cause, the
LLC Director or any Warburg Director, as the case may be.

 

5.4.                                  Committees; Subsidiaries.

 

(a)                                         Prior
to the Initial Public Offering, in the event the Board shall at any time create
a committee of the Board, including, without limitation, the Committee, the
Stockholders and Holdings shall take all action within their respective power
to cause Warburg Pincus to have proportional representation on any such
committee so created, measured by reference to the number of members of the
Board that Warburg Pincus is entitled to designate thereto pursuant to
Section 5.1 hereof.

 

(b)                                        From
and after the date hereof until the date of the closing of the Initial Public
Offering, the Stockholders and Holdings shall take all action within their
respective power to cause Warburg Pincus to have proportional representation on
the board of directors of each subsidiary of Holdings, measured by reference to
the number of members of the Board that Warburg Pincus is entitled to designate
thereto pursuant to Section 5.1 hereof.

 

5.5.                                  Irrevocable Proxy.  In order to effectuate the terms of this Section 5.1 and, in
addition to and not in lieu of Section 5.1, each Management Stockholder
hereby grants to Warburg Pincus an irrevocable proxy solely for the purpose of
voting all of the shares of Common Stock owned by such Management Stockholder
for the election of directors nominated in accordance with Section 5.1.

 

6.                                               Termination of Rights and
Obligations Under Certain Sections.  All rights and obligations pursuant to Sections 1, 2, 3, 4, 5.1,
5.3, 5.4, 5.5, 7, 8, 10, 11, 12 and 21 of this Agreement shall terminate upon
the closing of a public offering pursuant to a Registration Statement (a “Registration”)
that covers (together with prior Registrations) (a) not less than 50% of the
outstanding shares of Common Stock on a fully-diluted basis or (b) shares of
Common Stock that, after the closing of such public offering, will be traded on
the New York Stock Exchange, the American Stock Exchange or the NASDAQ National
Market, Inc.  Without limiting the
foregoing, this Agreement or any portion thereof shall terminate upon the
written consent of Holdings, the Majority Institutional Investors and the
Majority Management Stockholders; provided, however, that if the
termination of any provision of this Agreement would materially and adversely
affect the rights or duties of one or more Institutional Investors (the “Adversely
Affected Institutional Investors”), in a way that is materially different
from its effect on such rights or duties of the other Institutional Investors, the
termination of such provision shall not be effective as to any Adversely
Affected Institutional Investor unless consented to in writing by those
Adversely Affected Institutional Investors who hold a majority of the Units
held by all such Adversely Affected Instititutional Investors as of the date of
such determination (the “Majority Adversely Affected Institutional Investors”);
provided, further  however, that except as contemplated by
the first sentence of this Section 6, the written consent of Holdings,
each Institutional Investor and the Majority Management Stockholders shall be
required to terminate or otherwise eliminate (a) any of the terms of
Section 2.1 hereof and (b) this final proviso of Section 6.

 

14

 

7.                                               Legends.  A
copy of this Agreement shall be filed with the Secretary of Holdings and kept
with the records of Holdings.  Each
certificate or other instrument representing shares of Common Stock or Debt
Securities owned by any Stockholder shall bear upon its face the following
legends, as appropriate:

 

(i)                                           THE
SECURITIES EVIDENCED BY THIS CERTIFICATE OR OTHER INSTRUMENT HAVE BEEN ACQUIRED
FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAW AND MAY NOT BE
OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS
AND UNTIL REGISTERED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS
UNLESS, IN THE OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
COUNSEL MUST BE, AND THE FORM AND SUBSTANCE OF WHICH OPINION ARE, REASONABLY
SATISFACTORY TO TD HOLDING CORPORATION (“HOLDINGS”), SUCH OFFER, SALE,
ASSIGNMENT, PLEDGE, HYPOTHECATION, TRANSFER OR OTHER DISPOSITION IS EXEMPT FROM
REGISTRATION OR IS OTHERWISE IN COMPLIANCE WITH THE ACT, SUCH LAWS AND THE
STOCKHOLDERS’ AGREEMENT DATED AS OF JULY 22, 2003, BY AND AMONG HOLDINGS,
WARBURG PINCUS PRIVATE EQUITY VIII, L.P., THOSE EMPLOYEES OF TRANSDIGM INC. AND
ITS SUBSIDIARIES LISTED ON SCHEDULE II ATTACHED THERETO AND THOSE OTHER
PARTIES NAMED THEREIN (THE “STOCKHOLDERS’ AGREEMENT”).

 

(ii)                                      THE
SECURITIES REPRESENTED BY THIS CERTIFICATE OR OTHER INSTRUMENT ARE SUBJECT TO
RESTRICTIONS ON TRANSFER AND OTHER CONDITIONS, AS SPECIFIED IN THE
STOCKHOLDERS’ AGREEMENT, COPIES OF WHICH ARE ON FILE AT THE OFFICE OF HOLDINGS
AND WILL BE FURNISHED WITHOUT CHARGE TO THE HOLDER OF SUCH SECURITIES UPON
WRITTEN REQUEST.

 

(iii)                                 HOLDINGS
WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS,
DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL AND OTHER
SPECIAL RIGHTS OF EACH CLASS OR SERIES OF SHARES AUTHORIZED TO BE ISSUED AND
THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND OR
RIGHTS.

 

In addition, certificates representing shares of Common Stock or Debt
Securities shall bear any legends required by the applicable laws of any
states.

 

All Stockholders shall be bound by the requirements of such
legends.  Upon a Registration that
covers any shares of Common Stock, and provided that the terms of this
Section 7 terminate in connection with such Registration pursuant to the
terms of Section 6 hereof, the certificates or other instruments
representing such Shares or Debt Securities shall be replaced, at the expense
of Holdings, with certificates not bearing the legends required by Sections
7(i) and 7(ii).

 

15

 

8.                                               Covenants, Representation and
Warranties.

 

8.1.                                  New Management Stockholders.  Holdings and each of the Stockholders hereby
agrees that any employee of Holdings or any subsidiary thereof who after the
date of this Agreement is offered shares of any class of capital stock of
Holdings or holds stock options to purchase shares of capital stock of Holdings
shall, as a condition precedent to the acquisition of such shares or the grant
of such options, (a) become a party to this Agreement by executing a joinder
agreement, a form of which is attached as Exhibit A hereto, and (b) if
such employee is a resident of a state with a community property system, cause
his or her spouse to execute a Spousal Waiver in form and substance
satisfactory to the Committee and deliver such joinder agreement and Spousal
Waiver, if applicable, to Holdings at its address specified in Section 16
hereof.  Upon such execution and
delivery, such employee shall be a Management Stockholder for all purposes of
this Agreement and any shares of capital stock of Holdings owned by such
Management Stockholder or issuable to such Management Stockholder upon exercise
of any options and any Options owned by such Management Stockholder, shall be
considered Shares or Options, as the case may be, for all purposes of this
Agreement, except as otherwise set forth in the joinder agreement.

 

8.2.                                  Information Rights.  From and after the date that TransDigm Inc.
is not required to file periodic reports pursuant to the Exchange Act or the
Indenture, or if TransDigm Inc. fails to file such required periodic reports
with the Securities and Exchange Commission (the “SEC”), in each case,
for any reason whatsoever, Holdings shall provide to each Stockholder, by
electronic means or otherwise, essentially the same information that would be
contained in an Annual Reports on Form 10-K and in Quarterly Reports on Form
10-Q, if TransDigm Inc. were required to file, or did not fail to file, such
periodic reports, it being understood and agreed that such information shall
(a) be provided to the Stockholders no later than the date on which TransDigm
Inc. would have been required to file such report with the SEC and (b) include,
without limitation, annual audited financial statements and unaudited quarterly
financial statements, each prepared in accordance with generally accepted
accounting principles.  Without limiting
the foregoing, from and after the date hereof, on reasonable prior written
notice, Holdings shall make its representatives reasonably available to the
Institutional Investors to discuss the business, results of operations and
other matters pertaining to TransDigm, it being understood and agreed that no
Institutional Investor shall be permitted to exercise the rights granted
pursuant to this sentence more than two (2) times in any fiscal year.  Any and all information provided to any
Stockholder pursuant to the terms of this Agreement (other than any information
that is generally available to the public through no breach of the terms of
this Agreement) shall be treated as confidential information by such
Stockholder and such Stockholder shall use its reasonable best efforts to
ensure that such information is not disclosed or otherwise divulged to any
third party (other than such Stockholder’s counsel, accountants and other
professional advisors in connection with services being performed by any such
professional for such Stockholder.  Notwithstanding
any statement to the contrary in this Agreement, or any other document
furnished to any party hereto concerning the Company and its Affiliates, the
Company, its Affiliates and its advisors authorize each of the parties hereto
and each of the employees, representatives or other agents of such parties,
from and after the commencement of any discussions with any such party, to
disclose, without limitation of any kind, to any and all Persons, the tax
treatment and tax structure of the the transactions contemplated by this
Agreement and all matters relating hereto and all materials of any kind
(including opinions or

 

16

 

other
tax analyses) relating to such tax treatment or tax structure that are provided
to such party, except for any information identifying the Company or its
Affiliates. For purposes hereof, the terms “tax treatment” and “tax structure”
shall have the meaning provided by Treasury Regulation Section 1.6011-4.

 

8.3.                                  No Other Arrangements or Agreements.  Each Management Stockholder hereby
represents and warrants to Holdings and each other Stockholder that, except as
set forth in this Agreement and except for (a) the Management Stockholders’
Agreement, (b) if applicable, that certain Registration Rights Agreement, dated
as of the date hereof, among Holdings and the other parties named therein, (c)
any written employment agreement between such Management Stockholder and
Holdings or a subsidiary thereof, (d) any Option Agreement between such Management
Stockholder and Holdings, and (e) if applicable, the Roll-Over Agreement to
which such Management Stockholder is a party, each as amended from time to
time, he or she has not entered into or agreed to be bound by any other
arrangements or agreements of any kind with any other party with respect to any
shares of capital stock or Options of Holdings, including, but not limited to,
arrangements or agreements with respect to the acquisition, disposition or
voting of any shares of capital stock or Options of Holdings or any interest
therein (whether or not such arrangements and agreements are with Holdings, any
subsidiary thereof, other Stockholders or holders of capital stock of Holdings
that are not parties to this Agreement). 
Each Management Stockholder agrees that, except as disclosed above, he
or she will not enter into any such other arrangements or agreements as he or
she has represented and warranted to above with any other party so long as any
of the terms of this Agreement remain in effect, except for any such agreement
with Holdings entered into in connection with the grant of any Options pursuant
to the Plan or any other equity incentive plan of Holdings and except as
reasonably necessary to effect any transaction relating to the Shares or Options
required or permitted under this Agreement.

 

9.                                               Amendment, Modification,
Supplement and Waiver. 
This Agreement may be amended, modified or supplemented, and the
enforcement of any provision hereof may be waived, with, and only with, the
prior written consent of Holdings, the Majority Institutional Investors and the
Majority Management Stockholders; provided, however, that if any
amendment, modification, supplement or waiver would materially and adversely
affect the rights or duties of one or more Institutional Investors, in a way
that is materially different from its effect on such rights or duties of the
other Institutional Investors, such amendment, modification, supplement or
waiver shall not be effective as to any Adversely Affected Institutional Investor
unless consented to in writing by the Majority Adversely Affected Institutional
Investors; provided, further  however, that the terms of
Section 2.1 hereof and the terms of this proviso may be amended, modified,
supplemented or waived with, and only with, the prior written consent of
Holdings, each Institutional Investor and the Majority Management
Stockholders.  Subject to the terms of
the final proviso contained in the immediately preceding sentence hereof, if
Holdings, the Majority Institutional Investors, the Majority Management
Stockholders and, if applicable, the Majority Adversely Affected Institutional
Investors, shall have so agreed, any such amendment, modification, supplement
or waiver shall be effective with respect to all Stockholders hereunder,
whether or not such Stockholder shall have agreed to such amendment,
modification, supplement or waiver, and Holdings shall promptly notify all
other Stockholders who have not so agreed of the material terms of such
amendment, modification, supplement or waiver and the effective date thereof.

 

17

 

10.                                      Parties.

 

10.1.                         Assignment Generally.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs, legal representatives, successors and assigns; provided, no
Stockholder shall be permitted to assign any of his, her or its obligations
pursuant to this Agreement without the prior written consent of Holdings and
Warburg Pincus, unless such assignment is in connection with a Transfer
explicitly permitted by this Agreement and, prior to such assignment, such
assignee complies with the requirements of Section 10.3, it being
understood and agreed that subject to compliance with Section 10.3 hereof,
the LLC shall be permitted to assign its rights and obligations under
Section 3 hereof from time to time in accordance with the terms of
Section 5(d)(v) of that certain Amended and Restated Limited Liability
Company Agreement of the LLC.

 

10.2.                         Termination. 
Any party to, or Person who is subject to, this Agreement which ceases
to own any shares of Common Stock or any interest therein (assuming conversion
of all Options) shall cease to be a party to, or Person who is subject to, this
Agreement and thereafter shall have no rights or obligations hereunder; provided,
however, that a Transfer of shares of Common Stock or Options not
explicitly permitted under this Agreement shall not relieve any Stockholder of
any of his, her or its obligations hereunder.

 

10.3.                         Agreements to Be Bound.

 

(a)                                         Notwithstanding
anything to the contrary contained in this Agreement, any Transfer of shares of
Common Stock by a Management Stockholder shall be permitted under the terms of
this Agreement only if the transferee (i) shall agree in writing to be bound by
the terms and conditions of this Agreement and shall evidence such agreement by
executing a joinder agreement, the form of which is attached as Exhibit A
hereto and (ii) shall cause his or her spouse, if any, to execute a Spousal
Waiver in form and substance satisfactory to the Committee, if such transferee
is an individual who resides in a state with a community property system.  Upon the execution of the joinder agreement
and, if applicable, the Spousal Waiver by the spouse of such transferee, such
transferee shall be deemed to be a Management Stockholder and all shares of
Common Stock so Transferred shall be deemed Shares for all purposes of this
Agreement, except as otherwise provided in the joinder agreement; provided,
however, that Section 2.1 hereof shall not apply to any transferee
who has acquired shares of Common Stock pursuant to Section 4 hereof.

 

(b)                                        Notwithstanding
anything to the contrary contained in this Agreement, as a condition precedent
to the effectiveness of any Transfer of Units by any Institutional Investor,
the transferee thereof shall be required to agree in writing to be bound by the
terms and conditions of this Agreement pursuant to an instrument of assumption
reasonably satisfactory in substance and form to Holdings.  Upon the execution of the instrument of
assumption by such transferee, such transferee shall be deemed to be an Other
Investor and all Units so Transferred shall be deemed Units for all purposes of
this Agreement.  Subejct to the foregoing,
any Person who acquires Units from an Institutional Investor in accordance with
the terms hereof, shall be entitled to participate in the pre-emptive rights
contemplated by Section 3

 

18

 

hereof
to the extent, and only to the extent, that on the date that Holdings makes a
determination of those Stockholders entitled to participate in an issuance of
Proposed Securities pursuant to Section 3 hereof, such Person owns at
least fifity percent (50%) of the aggregate number of shares of Common Stock
initially acquired by such Person in accordance with the terms hereof.

 

11.                                      Recapitalizations, Exchanges, etc.
Affecting the Shares. 
Except as otherwise provided herein, the provisions of this Agreement
shall apply to the full extent set forth herein with respect to (a) the Shares
and (b) any and all shares of capital stock of Holdings or any successor or
assign of Holdings (whether by merger, consolidation, sale of assets or
otherwise) which may be issued in respect of, in exchange for, or in
substitution for the Shares, by reason of any stock dividend, split, reverse
split, combination, recapitalization, reclassification, merger, consolidation
or otherwise.  Except as otherwise
expressly provided herein, this Agreement is not intended to confer, and does
not confer, upon any Person, except for the parties hereto, any rights or
remedies hereunder.

 

12.                                      Transfer of Common Stock.  If at any time Holdings purchases any Shares
or Units pursuant to this Agreement, Holdings may pay the purchase price
determined under this Agreement for the Shares or Units it purchases by wire
transfer of funds or company check in the amount of the purchase price, and
upon receipt of payment of such purchase price, the selling Stockholder shall
deliver the certificates or other instruments representing the number of Shares
or Units being purchased in a form suitable for transfer, duly endorsed in
blank, and free and clear of any lien, claim or encumbrance.  Notwithstanding anything in this Agreement
to the contrary, Holdings shall not be required to make any payment for Shares
or Units purchased hereunder until delivery to it of the certificates or other
instruments representing such Shares or Units. 
If Holdings is purchasing less than all the Shares or Units represented
by a single certificate or other instrument, Holdings shall deliver to the
selling Stockholder a certificate or other instrument for any unpurchased
Shares or Units.

 

13.                                      Further Assurances.  Each party hereto or Person subject hereto
shall do and perform or cause to be done and performed all such further acts
and things and shall execute and deliver all such other agreements,
certificates, instruments and documents as any other party hereto or Person
subject hereto may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

14.                                      Governing Law. 
This Agreement and the rights and obligations of the parties hereunder
and the Persons subject hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of Delaware, without
giving effect to the choice of law principles thereof.

 

15.                                      Invalidity, of Provision.  The invalidity or unenforceability of any
provision of this Agreement in any jurisdiction shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of this Agreement, including that provision, in
any other jurisdiction.

 

16.                                      Notices.  All
notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been duly given if (a) delivered personally, (b) mailed, certified
or registered mail with postage prepaid, (c) sent by next-day or overnight mail
or delivery or (d) sent by telecopy (including facsimile) or telegram, as
follows:

 

19

 

(i)                                           If
to Holdings, to it at:

 

c/o TransDigm Holding
Company

26380 Curtiss Wright
Parkway

Richmond Heights, Ohio
44143

Facsimile No.: (216)
289-4937

Attention: Corporate
Secretary

 

with a copy to:

 

Warburg Pincus Private
Equity VIII, L.P. 

c/o Warburg Pincus LLC

466 Lexington Avenue

New York, New York 10017

Facsimile No.: (212)
878-9100

Attention: Kewsong Lee

David Barr

 

(ii)                                      If
to a Management Stockholder, to him or her at the address or facsimile number
listed on the signature page hereto or as such Management Stockholder shall
designate to Holdings in writing in accordance with the terms hereof, with a
copy to Warburg Pincus at its address indicated herein.

 

(iii)                                 If
to Warburg Pincus, to it at:

 

Warburg Pincus Private
Equity VIII, L.P. 

c/o Warburg Pincus LLC 

466 Lexington Avenue

New York, New York 10017

Facsimile No.: (212)
878-9100

Attention: Kewsong Lee

David Barr

 

with a copy to:

 

Willkie Farr &
Gallagher

787 Seventh Avenue

New York, New York 10019

Facsimile No.: (212)
728-8111

Attention: Steven J.
Gartner, Esq.

 

(iv)                                    If
to an Other Investor, to such Other Investor at the address or facsimile number
listed on the signature page hereto or as such Other Investor shall designate
to Holdings in writing in accordance with the terms hereof, with a copy to
Warburg Pincus at its address indicated herein.

 

or to such other Person or address as any party shall specify by notice
in writing to Holdings, with a copy to Warburg Pincus at its address indicated
herein.  Any notice so addressed shall
be

 

20

 

deemed to be given: if delivered personally or by telecopy (including
facsimile) or telegram, on the date of such delivery, if a business day,
otherwise on the first business day thereafter; if mailed by certified or
registered mail with postage prepaid, on the third business day after the date
of such mailing, and if sent by next-day or overnight mail or delivery, on the
first business day following the date of such mailing or delivery.

 

17.                                      Headings; Execution in Counterpart.  The headings and captions contained herein
are for convenience only and shall not control or affect the meaning or
construction of any provision hereof. 
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original and which together shall constitute one
and the same instrument.

 

18.                                      Entire Agreement.  This Agreement, together with the other agreements and documents
referenced herein, including in the recitals hereto (collectively, the “Other
Agreements”), embodies the entire agreement and understanding of the
parties hereto in respect of the subject matter contained herein.  There are no restrictions, promises,
representations, warranties, covenants or undertakings relating to the Shares
or the Units, other than those expressly set forth or referred to herein and
other than those set forth in the Other Agreements.  This Agreement and the Other Agreements supersede all prior
agreements and understandings among the parties with respect to such subject
matter, and it is the understanding of all parties hereto that any such prior
agreement is hereby terminated, null and void as of the Closing Date.

 

19.                                      Injunctive Relief.  The Shares and the Units cannot readily be purchased or sold in
the open market, and for that reason, among others, Holdings, the Institutional
Investors and the Management Stockholders will be irreparably damaged in the
event this Agreement is not specifically enforced.  Each of the parties therefore agrees that in the event of a
breach of any provision of this Agreement, the aggrieved party may elect to
institute and prosecute proceedings in any court of competent jurisdiction to
enforce specific performance or to enjoin the continuing breach of this
Agreement.  Such remedies shall,
however, be cumulative and not exclusive, and shall be in addition to any other
remedy which Holdings, the Institutional Investors or the Management
Stockholders may have.  Each party
hereto hereby irrevocably submits to the non-exclusive jurisdiction of the
state and federal courts in New York for the purposes of any suit, action or
other proceeding arising out of or based upon this Agreement or the subject
matter hereof.  Each party hereto hereby
consents to service of process by mail made in accordance with Section 16.

 

20.                                      Defined Terms.  As used in this Agreement, the following terms shall have the
meanings ascribed to them below:

 

20.1.                         Affiliate. 
“Affiliate” shall mean, with respect to any Person, a Person directly or
indirectly, through one or more intermediaries, controlling, controlled by, or
under common control with, such Person.

 

20.2.                         Closing Date. 
The “Closing Date” shall mean the date on which the transactions
contemplated by the Merger Agreement close.

 

20.3.                         Exchange Act. 
“Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended.

 

21

 

20.4.                         Indenture. 
“Indenture” shall mean that certain Indenture, dated as of the date
hereof, by and among TD Funding Corporation, TD Acquisition, the other parties
named therein and The Bank of New York, as Trustee, pursuant to which TD
Funding Corporation shall issue and sell up to $400,000,000 of aggregate
principal amount of senior subordinated notes due 2011.

 

20.5.                         Majority Management Stockholders.  “Majority Management Stockholders” as of any
date of determination shall mean those Management Stockholders who beneficially
own (within the meaning of Rule 13d-3 under the Exchange Act) fifty percent
(50%) or more of the total combined voting power of all Shares then held by the
Management Stockholders.

 

20.6.                         Options. 
“Options” shall mean all options to purchase shares of Common Stock
granted to or held by a Management Stockholder at any time when this Agreement
is in effect (including, where applicable, Roll-Over Options).

 

20.7.                         Permitted Assignee.  A “Permitted Assignee” shall mean, with
respect to each Institutional Investor, any Affiliate of such Institutional
Investor and any member, general partner or limited partner of such
Institutional Investor (or any Person holding an equity interest in any such
member, general partner or limited partner); provided, a member, general
partner or limited partner of an Institutional Investor (or any Person holding
an equity interest in any such member, general partner or limited partner) shall
only be considered a Permitted Assignee if such Institutional Investor is
Transferring shares of Common Stock or Debt Securities to such Person in
connection with the dissolution of such Institutional Investor in accordance
with the terms of its organizational documents; and provided, further,
that in each instance, any such transferee agrees to be bound by the provisions
of this Agreement in accordance with the terms of Section 10.3(b) hereof.

 

20.8.                         Person.  “Person”
shall mean an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint
venture, governmental authority or other entity of whatever nature.

 

20.9.                         Roll-Over Shares.  “Roll-Over Shares” shall mean those shares of Common Stock that
are acquired by a Management Stockholder upon exercise of a Roll-Over Option.

 

20.10.                Transfer. 
“Transfer” (or any variation thereof used herein) shall mean any direct
or indirect sale, assignment, mortgage, transfer, pledge, hypothecation or
other disposal.

 

21.                                      Irrevocable Proxy.

 

21.1.                         Grant of Proxy. 
Notwithstanding anything to the contrary in Section 5, effective as
of the Effective Time, each Management Stockholder hereby grants to Warburg
Pincus or any Affiliate of Warburg Pincus such Management Stockholder’s proxy,
and appoints Warburg Pincus or any Affiliate of Warburg Pincus as such
Management Stockholder’s attorney-in-fact (with full power of substitution), to
vote or act by written consent with respect to the Shares now or hereafter
owned by such Management Stockholder in connection with any and all matters,
including, without limitation, matters set forth hereunder as to which any vote
or actions may be requested or required. This proxy is coupled with an interest
and shall be irrevocable, and each Management Stockholder will take such
further action or execute such other instruments as may

 

22

 

be
reasonably necessary to effectuate the intent of this proxy and, effective as
of the Effective Time, hereby revokes any proxy previously granted by him with
respect to his or her Shares.

 

21.2.                         Effective Time of Proxy.  The
proxy and power of attorney granted pursuant to Section 21.1 hereof by
each Management Stockholder shall be effective upon the later of (a) the date
on which any Shares are issued to such Management Stockholder and (b) the
termination of such Management Stockholder’s employment for any reason.

 

[signature pages follow]

 

23

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  WARBURG PINCUS PRIVATE EQUITY VIII, L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Warburg Pincus & Co., its General
  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ David
  Barr

  	
   

  
	
   

  	
  Name: David
  Barr

  
	
   

  	
  Title:
  Partner

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  TD CO-INVESTORS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Warburg Pincus Private Equity VIII, L.P.,

  its Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Warburg Pincus & Co., its General
  Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ David
  Barr

  	
   

  
	
   

  	
  Name: David
  Barr

  
	
   

  	
  Title:
  Partner

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  SSB CAPITAL PARTNERS (MASTER FUND) I, LP

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  SSBPIF GP CORP., its General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John R.
  Barber

  	
   

  
	
   

  	
  Name:

  	
  John R. Barber

  
	
   

  	
  Title:

  	
  Co-President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  CGI
  PRIVATE EQUITY L.P., LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ John R.
  Barber

  	
   

  
	
   

  	
  Name:

  	
  John R. Barber

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
								

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  A.S.F. CO-INVESTMENT PARTNERS II, L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  PAF 1/03, LLC, as General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Old Kings II, LLC, as Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Paul R.
  Crotty

  	
   

  
	
   

  	
  Name:

  	
  Paul R.
  Crotty

  
	
   

  	
  Title:

  	
  Authorized
  Member

  
								

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  BANC OF AMERICA CAPITAL INVESTORS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Banc of America Capital Management, L.P.,

  its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  BACM I GP, LLC, its General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Robert
  L. Edwards, Jr.

  	
   

  
	
   

  	
  Name: Robert
  L. Edwards, Jr.

  
	
   

  	
  Title:
  Authorized Signatory

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ML TD HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Merrill Lynch Investment Managers, L.P., its Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Michael
  Cerminaro

  	
   

  
	
   

  	
  Name:
  Michael Cerminaro

  
	
   

  	
  Title:
  Authorized Signatory

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NEW YORK STATE RETIREMENT CO-

  INVESTMENT FUND L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  PCG NYS Investments LLC, its General

  Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Pacific Corporate Group LLC, its Managing

  Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Philip
  Posner

  	
   

  
	
   

  	
  Name: Philip
  Posner

  
	
   

  	
  Title:
  Treasurer

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ABBOTT CAPITAL PRIVATE EQUITY FUND III,
  L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Abbott Capital Management, LLC, its

  Investment Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Raymond
  L. Held

  	
   

  
	
   

  	
  Name:

  	
  Raymond L.
  Held

  
	
   

  	
  Title:

  	
  Managing
  Director

  
								

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  TEACHERS INSURANCE AND ANNUITY

  ASSOCIATION OF AMERICA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Holly
  Holtz

  	
   

  
	
   

  	
  Name: Holly
  Holtz

  
	
   

  	
  Title:
  Director

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Michael
  Graff

  	
   

  
	
   

  	
   

  	
   

  	
  Michael
  Graff

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  BNY PARTNERS FUND II, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  BNY Private Investment Management, Inc., 
its Member Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Burton
  M. Siegel

  	
   

  
	
   

  	
  Name:

  	
  Burton M.
  Siegel

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  
								

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  MANAGEMENT STOCKHOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
   

  	
   

  	
  W. Nicholas
  Howley

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gregory
  Rufus

  	
   

  
	
   

  	
   

  	
   

  	
  Gregory
  Rufus

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Douglas
  Peacock

  	
   

  
	
   

  	
   

  	
   

  	
  Douglas
  Peacock

  
									

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Ray
  Laubenthal

  	
   

  
	
   

  	
   

  	
   

  	
  Ray
  Laubenthal

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ James
  Riley

  	
   

  
	
   

  	
   

  	
   

  	
  James Riley

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ James
  Skulina

  	
   

  
	
   

  	
   

  	
   

  	
  James Skulina

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Rose
  DiFranco

  	
   

  
	
   

  	
   

  	
   

  	
  Rose
  DiFranco

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Roger
  Jones

  	
   

  
	
   

  	
   

  	
   

  	
  Roger Jones

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Robert
  Henderson

  	
   

  
	
   

  	
   

  	
   

  	
  Robert
  Henderson

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Hosrow
  Bordbar

  	
   

  
	
   

  	
   

  	
   

  	
  Hosrow
  Bordbar

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Peter
  Palmer

  	
   

  
	
   

  	
   

  	
   

  	
  Peter Palmer

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Fred
  Ching

  	
   

  
	
   

  	
   

  	
   

  	
  Fred Ching

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Cindy
  Terakawa

  	
   

  
	
   

  	
   

  	
   

  	
  Cindy
  Terakawa

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ John
  Leary

  	
   

  
	
   

  	
   

  	
   

  	
  John Leary

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Kevin
  McHenry

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin McHenry

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Joel
  Reiss

  	
   

  
	
   

  	
   

  	
   

  	
  Joel Reiss

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Thomas
  Sievers

  	
   

  
	
   

  	
   

  	
   

  	
  Thomas
  Sievers

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Vicki
  Saugstad

  	
   

  
	
   

  	
   

  	
   

  	
  Vicki
  Saugstad

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Todd
  Littleton

  	
   

  
	
   

  	
   

  	
   

  	
  Todd
  Littleton

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Bernie
  Iversen

  	
   

  
	
   

  	
   

  	
   

  	
  Bernie
  Iversen

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ James
  Liddle

  	
   

  
	
   

  	
   

  	
   

  	
  James Liddle

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Jeffrey
  Falkenberry

  	
   

  
	
   

  	
   

  	
   

  	
  Jeffrey
  Falkenberry

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Albert
  J. Rodriguez

  	
   

  
	
   

  	
   

  	
   

  	
  Albert J.
  Rodriguez

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Sergio
  Rodriguez

  	
   

  
	
   

  	
   

  	
   

  	
  Sergio
  Rodriguez

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gary
  McMurtrey

  	
   

  
	
   

  	
   

  	
   

  	
  Gary
  McMurtrey

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Chuck
  Burger

  	
   

  
	
   

  	
   

  	
   

  	
  Chuck Burger

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ J. Glyn
  Vorderkunz

  	
   

  
	
   

  	
   

  	
   

  	
  J. Glyn
  Vorderkunz

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
  BRATENAHL INVESTMENTS, LTD.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

SCHEDULE
I

 

Name and Address of Other Investors

 

TD Co-Investors, LLC

c/o Warburg Pincus LLC

466 Lexington Avenue

New York, NY 10017

Facsimile No.: (212) 878-9100

Attn:                          Kewsong
Lee

David Barr

 

SSB Capital
Partners (Master Fund) I, LP

388 Greenwich St., 32nd

Floor,
New York, NY 10013

Facsimile
No.: (212) 816-0229

Attn:  Blair Jacobson

 

CGI Private
Equity L.P., LLC

388 Greenwich St., 32nd

Floor, New York, NY 10013

Facsimile No.: (212)
816-0229

Attn:  Blair Jacobson

 

A.S.F.
Co-Investment Partners II, L.P.

A.S.F. Co-Investment Partners
II, L.P.

c/o Portfolio Advisors, LLC

9 Old Kings Highway South

Darien, CT  06920

Attention: Hugh Perloff

 

Banc of
America Capital Investors, L.P.

100 North Tryon Street, 25th
Floor

Banc of America Capital
Investors

Charlotte, NC 28255

Facsimile No.: (704)
386-6432

Attention: Robert L. Edwards

 

ML TD Holdings, LLC

c/o Merrill Lynch Investment Management

800 Scudders Mill Road 

Plainsboro, NJ 08536

Attention: Lynn Baranski

 

New York
State Retirement Co-Investment Fund L.P.

c/o Pacific Corporate Group LLC

1200 Prospect Street, Suite
200

La Jolla, CA 92037

 

Abbott
Capital Private Equity Fund II, L.P.

1211 Avenue of the Americas,
Suite 4300

New York, NY 10036

Attention: Mr. Raymond L.
Held

Facsimile No.:  (212) 757-0835

 

 

Teachers
Insurance and Annuity Association of America

730 Third Avenue

New York, New York
10017-3206

Attention: Holly Holtz and
Nancy DeBuccio, Securities

Division - Private Equity
Funds

Facsimile No.: (212)
907-2454

 

Michael
Graff

2 East 95th Street

New York, New York 10128

 

BNY Partners Fund II, L.L.C.

The Bank of New York

1290 Avenue of the Americas, 5th Floor

New York, NY 10104

Attention: Burton M. Siegel

 

with a copy to:

 

The Bank of New York

75 Park Place, 10th Floor

New York, NY 10286

Facsimile: (212) 298-1185

Attention:
Nancy Corry

 

 

SCHEDULE
II

 

Douglas W. Peacock 

10901 Burnt Mill Rd., #2104

Jacksonville, FL   32256

 

W. Nicholas Howley

10494 Lakeshore Blvd.

Bratenahl, OH  44108-1063

 

Bratenahl Investments, Ltd.

c/o W. Nicholas Howley

10494 Lakeshore Blvd.

Bratenahl, OH 44108-1063

 

Gregory Rufus

32346 Brandon Place

Avon Lake, OH  44012

 

Ray Laubenthal

9110 Oakstone Trail

Chardon Township, OH  44024

 

James Riley

2086 Baxterly Avenue

Lakewood, OH  44107

 

Rose DiFranco 

5928 Blakely

Highland Heights, OH  44143

 

James Skulina

7736 Ellington Place

Mentor, OH  44060

 

Roger Jones

34950 Ada Drive

Solon, OH  44139

 

Robert Henderson

1645 Alamitas Ave.

Monrovia, CA 
91016

 

Hosrow Bordbar

26871 Preciados Dr

Mission Viejo, CA  92691

 

Fred Ching 

3932 Skycrest Drive

Pasadena, CA 
91107

 

 

Peter Palmer

1717 Camden Ave

South Pasadena, CA  91030

 

Cindy Terakawa

629 Pencin Drive

Whittier, CA 
90601

 

John Leary

27830 Elk Mt. Drive

Yorba Linda, CA  92887

 

Kevin McHenry

27532 Caesars Place

Laguna Niguel, CA  92677

 

Joel Reiss

1206 Stephanie Drive

Corona, CA  92882

 

Vicki Saugstad

4209 Vermont Street

Long Beach, CA  90814

 

Tom Sievers

29632 Novacella

Laguna Niguel, CA  92677

 

Todd Littleton

206 East Crest Drive

Simpsonville, SC  29681

 

Jeffrey Faulkenberry

420 Phillips Lane

Greer, SC  29650

 

Bernie Iversen

113 Greenleaf

Easley, SC  29642

 

James Liddle

1520 Old Mill Road

Easley, SC  29642

 

Albert J. Rodriguez

114 Greentree

Crawford, TX 76638

 

 

Sergio Rodriguez

115 Whistling Wind Trail

McGregor, TX 76657

 

Chuck Burger

300 Telluride

Waco, TX 76712

 

J. Glyn Vorderkunz

510 Kiowa Lane

Waco, TX 76706

 

Gary McMurtrey

925 Austin Hines Drive

China Springs TX 76633

 

 

EXHIBIT
A

 

[FORM
OF JOINDER AGREEMENT]EXHIBIT 10.2

 

 

 

MANAGEMENT STOCKHOLDERS’ AGREEMENT

 

 

Dated as of July 22, 2003

 

 

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  Sales of Shares and Vested Options to
  Holdings.

  	
  2

  
	
   

  	
  1.1.

  	
  The Management Stockholders’ Rights.

  	
  2

  
	
   

  	
  1.2.

  	
  Notice

  	
  3

  
	
   

  	
  1.3.

  	
  Payment

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Holdings’ Rights to Purchase Shares and
  Vested Options from the Management Stockholders.

  	
  3

  
	
   

  	
  2.1.

  	
  Holdings’
  Rights.

  	
  3

  
	
   

  	
  2.2.

  	
  Notice

  	
  4

  
	
   

  	
  2.3.

  	
  Payment.

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Purchase
  Price.

  	
  6

  
	
   

  	
  3.1.

  	
  Optional Appraisal

  	
  6

  
	
   

  	
  3.2.

  	
  Fair Market Value.

  	
  6

  
	
   

  	
  3.3.

  	
  Carrying
  Value

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Prohibited Purchases; Involuntary
  Transfers.

  	
  8

  
	
   

  	
  4.1.

  	
  Prohibited Purchases

  	
  8

  
	
   

  	
  4.2.

  	
  Involuntary Transfers

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Termination of Rights and Obligations Under
  Certain Sections

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Legend

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Covenants, Representation and Warranties.

  	
  11

  
	
   

  	
  7.1.

  	
  New Management Stockholders

  	
  12

  
	
   

  	
  7.2.

  	
  No Other Arrangements or Agreements

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Amendment, Modification, Supplement and
  Waiver

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Parties.

  	
  13

  
	
   

  	
  9.1.

  	
  Assignment by Holdings

  	
  13

  
	
   

  	
  9.2.

  	
  Assignment Generally

  	
  13

  
	
   

  	
  9.3.

  	
  Termination

  	
  13

  
	
   

  	
  9.4.

  	
  Agreements to Be Bound

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Recapitalizations, Exchanges, etc.
  Affecting the Shares

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Transfer of Common Stock

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Further Assurances

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Governing
  Law

  	
  14

  

 

 

	
  14.

  	
  Invalidity, of Provision

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Notices

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Headings: Execution in Counterpart

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Entire
  Agreement

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Injunctive
  Relief

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Defined
  Terms

  	
  16

  
	
   

  	
  19.1.

  	
  Affiliate

  	
  16

  
	
   

  	
  19.2.

  	
  Cause

  	
  17

  
	
   

  	
  19.3.

  	
  Closing
  Date

  	
  17

  
	
   

  	
  19.4.

  	
  Disability

  	
  17

  
	
   

  	
  19.5.

  	
  Exchange
  Act

  	
  17

  
	
   

  	
  19.6.

  	
  Good
  Reason

  	
  17

  
	
   

  	
  19.7.

  	
  Majority Management Stockholders

  	
  17

  
	
   

  	
  19.8.

  	
  Options

  	
  18

  
	
   

  	
  19.9.

  	
  Permitted Warburg Assignee

  	
  18

  
	
   

  	
  19.10.

  	
  Permitted Transferee

  	
  18

  
	
   

  	
  19.11

  	
  Person

  	
  18

  
	
   

  	
  19.12.

  	
  Roll-Over
  Shares

  	
  18

  
	
   

  	
  19.13.

  	
  Transfer

  	
  18

  

 

ii

 

MANAGEMENT
STOCKHOLDERS’ AGREEMENT

 

This MANAGEMENT STOCKHOLDERS’ AGREEMENT (this “Agreement”),
dated as of July 22, 2003, by and among TD Holding Corporation, a Delaware
corporation (“Holdings”), Warburg Pincus Private Equity VIII, L.P., a
Delaware limited partnership (“Warburg Pincus”), and those employees of
TransDigm Inc. and certain of its subsidiaries (collectively, “TransDigm”)
whose names and addresses are set forth from time to time on Schedule I
hereto (such employees, together with any Persons who become parties to this
Agreement pursuant to Section 7.1 hereof and each of their respective
Permitted Transferees, are hereinafter collectively referred to as the “Management
Stockholders”).  Schedule I
hereto shall be updated from time to time to include each Management
Stockholder who becomes a party to this Agreement after the date hereof
pursuant to the terms hereof. 
Capitalized terms used herein without definition elsewhere in this
Agreement are defined in Section 19 hereof.

 

RECITALS

 

WHEREAS, on June 6, 2003, TD Acquisition Corporation, a Delaware
corporation and a wholly-owned subsidiary of Holdings (“TD Acquisition”),
entered into an Agreement and Plan of Merger (the “Merger Agreement”)
with TransDigm Holding Company, a Delaware corporation (“TransDigm Holding”),
pursuant to which TD Acquisition shall be merged with and into TransDigm
Holding, with TransDigm Holding as the surviving corporation (the “Merger”);

 

WHEREAS, immediately prior to the consummation of the transactions
contemplated by the Merger Agreement, certain Management Stockholders held
certain options to purchase shares of common stock, par value $0.01 per share,
of TransDigm Holding (the “Pre-Merger Options”);

 

WHEREAS, prior to or contemporaneously with the execution of this
Agreement, each Management Stockholder who held Pre-Merger Options entered into
a letter agreement with Warburg Pincus (each, a “Roll-Over Agreement”)
pursuant to which each such Management Stockholder agreed that certain
Pre-Merger Options having an aggregate Net Value (as such term is defined in
the Merger Agreement) specified in such Management Stockholder’s Roll-Over
Agreement shall not be cancelled in connection with the Merger (the “Roll-Over
Equity”), but rather, at the Effective Time (as such term is defined in the
Merger Agreement), such Management Stockholder’s Roll-Over Equity shall be
converted (a) partially into a fully vested option (collectively, the “Roll-Over
Options”) to purchase shares of common stock, par value $0.01 per share, of
Holdings (the “Common Stock” and together with any shares of Common
Stock acquired by any party hereto after the date hereof, whether upon exercise
of Options or otherwise, the “Shares”) and (b) partially into a
proportionate interest in the TD Holding Corporation 2003 Rollover Deferred
Compensation and Phantom Stock Unit Plan and the TD Holding Corporation 2003
Management Deferred Compensation and Phantom Stock Unit Plan, in each case;

 

WHEREAS, at the Effective Time, and from time to time thereafter, and
subject to the terms of Section 7.1 hereof, Holdings has granted or shall
grant, as the case may be, to certain Management Stockholders, additional
options to purchase shares of Common Stock pursuant to the terms of the Plan
(as hereinafter defined) and a Stock Option Agreement to be entered into
between Holdings and such Management Stockholder;

 

 

WHEREAS, in addition to being subject to the terms and conditions set
forth in this Agreement, the Shares and the Options owned by any Management
Stockholder, including, where applicable, the Roll-Over Options and the
Roll-Over Shares, shall be subject to, among other things, (a) the terms and
conditions of the Roll-Over Agreement to which such Management Stockholder is a
party, (b) that certain Stockholders’ Agreement, dated as of the date hereof,
among Holdings, Warburg Pincus, the Management Stockholders and the other
parties named therein (the “Stockholders’ Agreement”), and (c) the TD
Holding Corporation 2003 Stock Incentive Plan (as the same may be amended from
time to time, the “Plan”);

 

WHEREAS, Holdings, Warburg Pincus and the Management Stockholders
desire to promote their mutual interests by agreeing to certain matters
relating to the shares of Common Stock and Options and certain other matters
set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and
obligations set forth in this Agreement, and to implement the foregoing, the
parties hereto agree as follows:

 

1.                                               Sales of Shares and Vested Options
to Holdings.

 

1.1.                                  The Management Stockholders’ Rights.

 

(a)                                         Subject
to all subsections of this Section 1 and Section 4, in the event that
a Management Stockholder’s employment with Holdings or any of its subsidiaries
is terminated as a result of (i) termination by Holdings or any such subsidiary
of such employment without Cause, (ii) the death or Disability of such
Management Stockholder or (iii) the resignation of such Management Stockholder
for Good Reason, such Management Stockholder shall have the right to sell to
Holdings, and Holdings shall have the obligation to purchase from such
Management Stockholder, all, but not less than all, of such Management Stockholder’s
(x) shares of Common Stock (including Roll-Over Shares, where applicable), (y)
Roll-Over Options, where applicable, and (z) other Options that are fully
vested as of the date of the termination of such Management Stockholder’s
employment (the shares of Common Stock and Options referred to in clauses (x),
(y) and (z) immediately above are hereinafter collectively referred to as the “Vested
Equity”; the Roll-Over Options and other Options that are fully vested as
of the date of the termination of such Management Stockholder’s employment are
hereinafter collectively referred to as the “Vested Options”).  The purchase price to be paid by Holdings
with respect to any Vested Equity purchased pursuant to this
Section 1.1(a) shall be equal to the Fair Market Value thereof.

 

(b)                                        Subject
to all subsections of this Section 1 and Section 4, a Management
Stockholder shall have the right to sell to Holdings, and Holdings shall have
the obligation to purchase from such Management Stockholder, all or any portion
of such Management Stockholder’s Vested Equity if such Management Stockholder’s
employment with Holdings or any of its subsidiaries is terminated as a result
of the retirement of such Management Stockholder upon or after reaching the age
of 65 (“Retirement”).  The
purchase price to be paid by Holdings with respect to any Vested Equity
purchased pursuant to this Section 1.1(b) shall be equal to the Fair
Market Value thereof.

 

2

 

1.2.                                  Notice.  If any
Management Stockholder desires to sell any Vested Equity to Holdings pursuant
to Section 1.1, he or she (or his or her estate, trust, corporation or
partnership, as the case may be) shall notify Holdings in writing not more than
six (6) months after the effective date of such Management Stockholder’s
termination of employment (or such later date as mutually agreed to in writing
by such Management Stockholder and Holdings) and such notice shall specify the
number of shares of Common Stock or Vested Options such Management Stockholder
owns, and the number of shares of Common Stock or Vested Options to be
repurchased hereunder.

 

1.3.                                  Payment. 
Subject to Section 4, payment for any Vested Equity sold by a
Management Stockholder pursuant to Section 1.1(a) or 1.1(b) shall be made
on or prior to the date that is thirty (30) calendar days (or the first
business day thereafter if the thirtieth (30th) calendar day is not
a business day) following the date of the receipt by Holdings of such
Management Stockholder’s notice described in Section 1.2; provided,
however, that if Fair Market Value is being determined pursuant to
Sections 3.2(b) or 3.2(c), then such payment shall be made on or prior to the
date that is thirty (30) calendar days (or the first business day thereafter if
the thirtieth (30th) calendar day is not a business day) following
the date of the determination of Fair Market Value pursuant to such
Sections.  Any payments required to be
made by Holdings under this Section 1.3 shall accrue simple interest at a
rate per annum of two percent (2%) from the date such Management Stockholder
provides notice to Holdings in accordance with Section 1.2 to the earlier
of (a) the date Holdings (or a permitted assignee thereof) has paid such
Management Stockholder in full for all of the Vested Equity then being
purchased and (b) the date Holdings delivers to such Management Stockholder a
promissory note in respect of such amount as contemplated by Section 4
hereof.  All payments of interest
accrued hereunder shall be paid only at the date of payment by Holdings for the
Vested Equity being purchased.

 

2.                                               Holdings’ Rights to Purchase Shares
and Vested Options from the Management Stockholders.

 

2.1.                                  Holdings’ Rights.

 

Subject
to all subsections of this Section 2 and Section 4, Holdings shall
have the right to purchase from a Management Stockholder, and such Management
Stockholder shall have the obligation to sell to Holdings, all, but not less
than all:

 

(a)                                         of the Vested Equity owned by such Management Stockholder as of
the date of his or her termination of employment with Holdings or any
subsidiary thereof, at the greater of the Fair Market Value and the Carrying
Value thereof if such Management Stockholder’s employment with Holdings or any
of its subsidiaries is terminated as a result of (i) the termination by
Holdings or any such subsidiary of such employment without Cause, (ii)
the death or Disability of such Management Stockholder or (iii) the resignation
of such Management Stockholder for Good Reason; or

 

(b)                                        of the Roll-Over Shares and Roll-Over Options
owned by such Management Stockholder as of the date of his or her termination
of employment with Holdings or any subsidiary thereof, at the Carrying Value
thereof, if such Management Stockholder’s

 

3

 

employment
with Holdings or any of its subsidiaries is terminated as a result of (i) the
termination by Holdings or any such subsidiary of such employment for Cause or (ii) the resignation of such Management
Stockholder without Good Reason; or

 

(c)                                        of the other Shares and the other Vested
Options (other than Roll-Over Shares and Roll-Over Options, as applicable)
owned by a Management Stockholder as of the date of his or her termination of
employment with Holdings or any subsidiary thereof, at the lower of the Fair
Market Value and the Carrying Value thereof, if such Management Stockholder’s
employment with Holdings or any of its subsidiaries is terminated as a result
of (i) the termination by Holdings or any such subsidiary of such employment
for Cause or (ii) the
resignation of such Management Stockholder without Good Reason.

 

2.2.                                  Notice.  If
Holdings desires to purchase any Vested Equity from a Management Stockholder
pursuant to Section 2.1, it shall notify such Management Stockholder (or his
or her estate, trust, corporation or partnership, as the case may be, with all
such Persons being referred to hereinafter, collectively with such Management
Stockholder, as the “Management Stockholder Parties”) in writing not
more than six (6) months after the effective date of the termination of such
Management Stockholder’s employment (or such later date as mutually agreed to
in writing by such Management Stockholder Party and Holdings).

 

2.3.                                  Payment.

 

(a)                                         Subject
to Section 4, payment for any Vested Equity purchased by Holdings by
reason of an event described in Section 2.1(a) shall be made on or prior
to the date that is thirty (30) calendar days (or the first business day
thereafter if the thirtieth (30th) calendar day is not a business
day) following the date of the receipt by a Management Stockholder Party of
Holdings’ notice pursuant to Section 2.2; provided, however,
that if Fair Market Value is being determined pursuant to Section 3.2(c),
then such payment shall be made on or prior to the date that is thirty (30)
calendar days (or the first business day thereafter if the thirtieth (30th)
calendar day is not a business day) following the date of determination of Fair
Market Value pursuant to such Section.

 

(b)                                        Subject
to Section 4 hereof, if the Carrying Value of the Vested Equity purchased
by Holdings by reason of an event described in Section 2.1(b) or
Section 2.1(c) hereof is less than $2,000,000 in the aggregate (computed
as of the effective date of the termination of a Management Stockholder’s
employment), Holdings shall make a payment of all amounts owing to such
Management Stockholder in respect of such Vested Equity within thirty (30)
calendar days (or the first business day thereafter if the thirtieth (30th)
calendar day is not a business day) following the end of the fiscal year during
which such Management Stockholder’s employment was terminated; provided,
however, that if Fair Market Value is being determined pursuant to
Section 3.2(c) in connection with a termination of a Management Stockholder’s
employment pursuant to Section 2.1(c) above, then such payment shall be
made on the later of (i) the date that is thirty (30) calendar days (or the
first business day thereafter if the thirtieth (30th) calendar day
is not a business day) following the date of determination of Fair Market Value
pursuant to such Section and (ii) the date which is thirty (30) calendar
days (or the first business day thereafter if the thirtieth (30th)
calendar day is not a business day) following the end of the fiscal year during
which such Management Stockholder was terminated.

 

4

 

(c)                                        Subject
to Section 4 hereof, and in the sole discretion of the Compensation
Committee (the “Committee”) of the Board of Directors of Holdings (the “Board”),
if the Carrying Value of the Vested Equity purchased by Holdings by reason of
an event described in Section 2.1(b) or Section 2.1(c) hereof is
equal to or greater than $2,000,000 in the aggregate (computed as of the
effective date of the termination of a Management Stockholder’s employment),
Holdings shall make a payment of all amounts owing to such Management
Stockholder in respect of such Vested Equity as follows (or on a more
accelerated schedule if the Committee so elects, in its sole discretion):

 

(i)                                           if
the date of termination of the Management Stockholder’s employment occurs prior
to the third anniversary of the Closing Date, then one-third of the aggregate
purchase price of the Vested Equity being purchased shall be paid within thirty
(30) calendar days (or the first business day thereafter if the thirtieth (30th)
calendar day is not a business day) following each of the third, fourth and
fifth anniversaries of the Closing Date;

 

(ii)                                      if
the date of termination of the Management Stockholder’s employment occurs on or
after the third anniversary of the Closing Date and prior to the fourth
anniversary of the Closing Date, then (x) two-thirds of the purchase price of
the Vested Equity being purchased shall be paid within thirty (30) calendar
days (or the first business day thereafter if the thirtieth (30th)
calendar day is not a business day) following such fourth anniversary and (y)
one-third of the purchase price of the Vested Equity being purchased shall be
paid within thirty (30) calendar days (or the first business day thereafter if
the thirtieth (30th) calendar day is not a business day) following
the fifth anniversary of the Closing Date;

 

(iii)                                 if
the date of termination of the Management Stockholder’s employment occurs on or
after the fourth anniversary of the Closing Date and prior to the fifth
anniversary of the Closing Date, then the purchase price of the Vested Equity
being purchased shall be paid within thirty (30) calendar days (or the first
business day thereafter if the thirtieth (30th) calendar day is not
a business day) following such fifth anniversary; and

 

(iv)                                    if
the date of termination of the Management Stockholder’s employment occurs on or
after the fifth anniversary of the Closing Date, then the purchase price of the
Vested Equity being purchased shall be paid contemporaneously with the
surrender of the certificates or other instruments representing the Vested
Equity being purchased together with any other documents of transfer that
Holdings may reasonably request, if applicable.

 

Any payments based on Fair Market Value required to be made by Holdings
under this Section 2.3 shall accrue simple interest at a rate per annum of
two percent (2%) on the amounts not paid from date Holdings provides notice to
the relevant Management Stockholder Party in accordance with Section 2.2
to the earlier of (a) the date Holdings (or a permitted assignee thereof) has
paid such Management Stockholder in full for all of the Vested Equity then
being purchased and (b) the date Holdings delivers to such Management
Stockholder a promissory note in respect of such amount as contemplated by
Section 4 hereof.   All payments of
interest

 

5

 

accrued hereunder shall be paid
only at the date or dates of payment by Holdings for the Vested Equity being
purchased.

 

3.                                               Purchase Price.

 

3.1.                                  Optional Appraisal.  In its sole and absolute discretion, the
Committee may, but shall not be required to, engage from time to time, on
Holdings’ behalf, an independent valuation consultant or appraiser of
recognized national standing reasonably satisfactory to Warburg Pincus (the “Appraiser”)
to appraise (the “Appraisal”) the Fair Market Value of the shares of
Common Stock, with such Appraisal to be as of a date that the Committee
determines in its sole and absolute discretion.  In the event the Committee determines to engage an Appraiser, (i)
such Appraiser shall prepare and deliver to Holdings a written report
describing the results of such Appraisal and (ii) promptly after receipt of
each Appraisal, Holdings shall deliver to each Management Stockholder a copy of
the letter as to value included with the Appraisal.

 

3.2.                                  Fair Market Value.

 

(a)                                         The
“Fair Market Value” of a share of Common Stock determined for purposes of
Section 1, 2 and 4.2 hereof shall computed by dividing (i) the fair market
value of the entire Common Stock equity interest of Holdings taken as a whole,
without additional premiums for control or discounts for minority interests or
restrictions on transfer, by (ii) the number of outstanding shares of Common
Stock, calculated on a fully-diluted basis. 
The “Fair Market Value” of any Vested Option determined for
purposes of Section 1, 2 and 4.2 hereof shall be the Fair Market Value of
the number of shares of Common Stock underlying such Vested Option, computed in
acccordance with the immediately preceding sentence hereof, less the applicable
exercise price therefor.  Except as
otherwise set forth in this Section 3, the Fair Market Value of a share of
Common Stock shall be equal to the Fair Market Value thereof as set forth in
the most recent Appraisal, if any, prior to the termination of the relevant
Management Stockholder’s employment. 
Notwithstanding the foregoing, if the effective date of the termination
of the relevant Management Stockholder’s employment is on or after a date which
is six (6) months from the date of the last Appraisal or if the Committee has
not previously elected to obtain an Apprasial pursuant to Section 3.1
above, then, in each case, the Fair Market Value of a share of Common Stock
shall be determined in the manner set forth in Sections 3.2(b) and 3.2(c)
hereof.

 

(b)                                        If
a Management Stockholder or Holdings exercises his, her or its rights pursuant
to Section 1, Section 2 or Section 4.2 hereof, as the case may
be, and if the effective date of the termination of a Management Stockholder’s
employment is on or after a date which is six (6) months from the date of the
last Appraisal, if any, or if the Committee has not previously elected to
obtain an Apprasial pursuant to Section 3.1 above, then the Fair Market
Value of a share of Common Stock shall be determined by the Board in good faith
in accordance with the methodology set forth in Section 3.2(a) above.  Upon the Board’s good faith determination of
Fair Market Value as contemplated hereby, the Board shall inform the relevant
Management Stockholder in writing of its determination (the “Valuation
Notice”).  In the event a Management
Stockholder exercises its put rights pursuant to Section 1 above, the
Board shall be required to deliver the Valuation Notice to such Management
Stockholder within thirty (30) calendar days of Holdings’ receipt of the notice
from such Management Stockholder described in Section 1.2

 

6

 

above.  In the event Holdings exercises its call
rights pursuant to Section 2 or Section 4.2 hereof, the Valuation
Notice shall accompany the notice delivered to such Management Stockholder
pursuant to Section 2.1 or Section 4.2, as the case may be.  Except as expressly set forth in
Section 3.2(c) below, any determination of Fair Market Value by the Board
as set forth in the Valuation Notice shall be final, binding and conclusive on
Holdings and the relevant Management Stockholder.

 

(c)                                        Notwithstanding
anything contained in Section 3.2(b) to the contrary, if the Carrying
Value (computed as of the effective date of the termination of such Management
Stockholder’s employment) of the Vested Equity owned by a Management
Stockholder that is to be purchased by Holdings pursuant to Section 1,
Section 2 or Section 4.2 hereof is in excess of $2,000,000 in the
aggregate, then such Management Stockholder shall have the right to dispute the
Fair Market Value determined by the Board pursuant to Section 3.2(b)
above.  A Management Stockholder who
wishes to dispute the Fair Market Value determined by the Board pursuant to
Section 3.2(b) above shall be required to deliver a notice of dispute (the
“Dispute Notice”) to the Board within ten (10) calendar days of the date
of the Valuation Notice (the “Dispute Period”).  If a Management Stockholder entitled to
dispute the Board’s determination of Fair Market Value in accordance with the
terms hereof fails to deliver a Dispute Notice to the Board during the Dispute
Period, such Management Stockholder shall be deemed to have accepted the Fair
Market Value set forth in the Valuation Notice and such Fair Market Value shall
thereafter be deemed final, binding and conclusive on such Management
Stockholder.  In the event a Management
Stockholder delivers a Dispute Notice to the Board within the Dispute Period,
and if such Management Stockholder and the Board cannot agree on the Fair
Market Value within thirty (30) calendar days after the date of the Dispute
Notice, the Management Stockholder or Holdings may, by three (3) business days’
written notice to the other, initiate appraisal proceedings under
Section 3.2(d) for determination of the Fair Market Value.

 

(d)                                        Appraisal
Procedure.  If any party shall
initiate an appraisal procedure to determine the Fair Market Value of a share
of Common Stock as contemplated by Section 3.2(c) above, then the
Management Stockholder, on the one hand, and Holdings, on the other hand, shall
each promptly appoint as an appraiser an independent valuation consultant or
appraiser of recognized national standing. 
Each appraiser shall, within thirty (30) calendar days of appointment,
separately investigate the Fair Market Value of a share of Common Stock as of
the effective date of the termination of such Management Stockholder’s
employment and shall submit a notice of an appraisal of that value to the
Management Stockholder and Holdings. 
Each appraiser shall be instructed to determine such value based on the
methodology set forth in Section 3.2(a). 
If the appraised Fair Market Values (the “Earlier Appraisals”)
vary by ten percent (10%) or less, measured from the lower appraisal, the
average of the two appraisals on a per share basis shall be controlling as the
amount of the Fair Market Value.  If the
appraised Fair Market Values vary by ten percent (10%) or more, measured from
the lower appraisal, the appraisers, within ten (10) business days of the
submission of the last appraisal, shall appoint a third appraiser who shall be
an independent valuation consultant or appraiser of recognized national
standing.  The third appraiser shall,
within thirty (30) calendar days of his appointment, appraise the Fair Market
Value of a share of Common Stock as of the effective date of the termination of
such Management Stockholder’s employment, such apprasial to be based on the
methodology set forth in Section 3.2(a). 
Such third appraiser shall submit notice of its appraisal to the
Management Stockholder and Holdings. 
The Fair Market Value determined by the third

 

7

 

appraiser
shall be controlling unless the Fair Market Value determined by such appraiser
is greater than the Fair Market Value determined in the two Earlier Appraisals,
in which case the higher of the two Earlier Appraisals will control, and unless
the Fair Market Value is lower than the two Earlier Appraisals, in which case
the lower of the two Earlier Appraisals will control.  If any party fails to appoint an appraiser or if one of the two
initial appraisers fails after appointment to submit its appraisal within the
required period, the appraisal submitted by the remaining appraiser shall be
controlling.  The Management Stockholder
and Holdings shall each bear the cost of its respective appointed appraiser.  The cost of the third appraisal shall be
shared one-half by the Management Stockholder and one-half by Holdings.

 

(e)                                        In
the event an apprasial procedure is initiated by a Management Stockholder or
Holdings as contemplated above, and, if following the determination of Fair
Market Value pursuant to Section 3(d) above, either Holdings or a
Management Stockholder wishes to revoke an election to purchase or sell Vested
Equity pursuant to the terms of Section 1, Section 2 or Section 4.2
hereof, as the case may be, such Person shall deliver written notice of such
revocation within ten (10) calendar days after the determination of the
appraised Fair Markeet Value pursuant to Section 3.2(d) above.  Following the expiration of such ten (10)
calendar period, neither Holdings nor any Management Stockholder shall be
entitled to revoke its election to purchase or sell Vested Equity.

 

3.3.                                  Carrying Value.  For the purposes of this Agreement, the “Carrying Value”
of any share of Common Stock shall be equal to $[1,000.00], plus simple
interest at a rate per annum equal to 2% which shall be deemed to be the
carrying cost, calculated from the date of the purchase of such share of Common
Stock by the selling Management Stockholder through the date of purchase by Holdings,
less the amount of dividends paid to such Management Stockholder in respect of
such share of Common Stock (to the extent that the amount of such dividends do
not exceed such simple interest).  The “Carrying
Value” of any Vested Option shall be the Carrying Value of the number of
shares of Common Stock underlying such Vested Option, computed in acccordance
with the immediately preceding sentence hereof, less the applicable exercise
price therefor; provided, however, with respect to any Vested
Option, any interest thereon representing the carrying cost as provided above,
shall accrue from the date of the grant of such Vested Option through the date
of the purchase by Holdings of such Vested Option pursuant to the terms of this
Agreement.

 

4.                                               Prohibited Purchases;
Involuntary Transfers.

 

4.1.                                  Prohibited Purchases.  Notwithstanding anything to the contrary
herein, Holdings shall not be permitted or obligated to purchase any Vested
Equity from a Management Stockholder hereunder to the extent (a) Holdings is prohibited
from purchasing such Vested Equity by applicable law, (b) Holdings does not
then have sufficient cash on hand to enable it to make such purchase and any
debt instruments or agreements (other than debt instruments or agreements with
an Affiliate of Holdings, Warburg Pincus or any Affiliate thereof), including
any amendment, renewal, extension, substitution, refinancing, replacement or
other modification thereof entered into or assumed by Holdings, TransDigm
Holding or TransDigm or any predecessor thereto in connection with the Merger
or thereafter, including, without limitation, that certain Credit Agreement,
dated as of the date hereof, among TD Funding Corporation (to be assumed by
TransDigm Inc.), TD Acquisition (to be assumed by TransDigm Holding) and the

 

8

 

financial institutions party
thereto, and that certain Indenture, dated as of the date hereof, among TD
Funding Corporation (to be assumed by TransDigm Inc.), the guarantors party
thereto and the trustee named therein, do not allow (i) Holdings to purchase
such Vested Equity and (ii) TransDigm Holding or TransDigm to pay a dividend or
otherwise distribute to Holdings an amount of cash for the purpose of, and
sufficient to enable Holdings to purchase, such Vested Equity (all such debt
instruments or agreements referred to in this clause (b) are hereinafter
collectively referred to as the “Financing Documents”), (c) the purchase
of such Vested Equity by Holdings or the payment of a dividend or other
distribution to Holdings by any subsidiary thereof to enable the purchase of
such Vested Equity would, or in the opinion of the Committee might, result in
the occurrence of a default or an event of default under any Financing Document
or create a condition which would, or in the opinion of the Committee might,
with notice or lapse of time or both, result in such default or event of
default or (d) the purchase of such Vested Equity by Holdings or the payment of
any such dividend or distribution to Holdings by any subsidiary thereof to
enable the purchase of such Vested Equity would, in the reasonable opinion of
the Committee, be imprudent in view of the financial condition (present or
projected) of Holdings and its subsidiaries or the anticipated impact the
purchase of such Vested Equity or the payment of such dividend or other
distribution would have on Holdings’ and its subsidiaries’ financial condition
(present or projected) or the ability of Holdings or any such subsidiary of
Holdings to meet its obligations under any Financing Document or
otherwise.  If any Vested Equity which
Holdings has the right or obligation to purchase on any date exceeds the total
amount that Holdings is permitted or able to purchase on such date pursuant to
the preceding sentence (the “Maximum Amount”), Holdings shall purchase
on such date only that number of shares of Common Stock and that number of
Vested Options up to the Maximum Amount (and shall not be required to purchase
more than the Maximum Amount) in such amounts as the Committee shall determine
in good faith applying the following order of priority:

 

(a)                                         First,
the Vested Equity of all Management Stockholders that are Roll-Over Shares or
Roll-Over Options, which Roll-Over Shares or Roll-Over Options are being
repurchased by Holdings by reason of the Management Stockholder’s termination
of employment for any reason and, to the extent that the number of Roll-Over
Shares and Roll-Over Options that Holdings is obligated to purchase from such
Management Stockholders (but for this Section 4) exceeds the Maximum
Amount, such Roll-Over Shares and Roll-Over Options pro rata among such
Management Stockholders on the basis of the number of Roll-Over Shares and the
number of shares of Common Stock underlying Roll-Over Options held by each of
such Management Stockholders that Holdings is obligated or has the right to
purchase;

 

(b)                                        Second,
to the extent that the Maximum Amount is in excess of the amount Holdings
purchases pursuant to clause (a) above, the Vested Equity (other than Roll-Over
Shares and Roll-Over Options) of all Management Stockholders whose Vested
Equity is being purchased by Holdings by reason of termination of employment
due to death or Disability and, to the extent that the number of shares of
Common Stock and Vested Options that Holdings is obligated to purchase from
such Management Stockholders (but for this Section 4) exceeds the Maximum
Amount, such shares of Common Stock and Vested Options pro rata among such
Management Stockholders on the basis of the number of shares of Common Stock
and the number of shares of Common Stock underlying Vested Options held by each
of such Management Stockholders that Holdings is obligated or has the right to
purchase; and

 

9

 

(c)                                        Third,
to the extent that the Maximum Amount is in excess of the amount Holdings
purchases pursuant to clauses (a) and (b) above, the Vested Equity (other than
Roll-Over Shares and Roll-Over Options) of all Management Stockholders whose
Vested Equity is being purchased by Holdings by reason of termination of
employment without Cause or due to Retirement or resignation for Good Reason up
to the Maximum Amount and, to the extent that the number of shares of Common
Stock and Vested Options that Holdings is obligated to purchase from such
Management Stockholders (but for this Section 4) exceeds the Maximum
Amount, such Vested Equity pro rata among such Management Stockholders on the
basis of the number of shares of Common Stock and the number of shares of Common
Stock underlying Vested Options held by each of such Management Stockholders
that Holdings is obligated or has the right to purchase; and

 

(d)                                        Fourth,
to the extent the Maximum Amount is in excess of the amounts Holdings purchases
pursuant to clauses (a), (b) and (c) above, the Vested Equity (other than
Roll-Over Shares and Roll-Over Options) of all other Management Stockholders
whose Vested Equity is being purchased by Holdings up to the Maximum Amount
and, to the extent that the number of shares of Common Stock and Vested Options
that Holdings is obligated to purchase from such Management Stockholders (but
for this Section 4) exceeds the Maximum Amount, the Vested Equity of such
Management Stockholders in such order of priority and in such amounts as the
Committee, in its sole discretion, shall in good faith determine to be
appropriate under the circumstances.

 

Notwithstanding anything to the contrary contained in this Agreement,
if Holdings is unable to make any payment when due to any Management
Stockholder under this Agreement by reason of this Section 4, and subject
to Section 9.1 hereof, Holdings shall issue an unsecured promissory note
to such Management Stockholder for the amount of such payment, the terms of
which note shall be acceptable to the lenders under any Financing Document to
which Holdings is a party or otherwise bound and shall not result in a breach
or violation of any such Financing Document. 
A promissory note issued to a Management Stockholder by Holdings under
this Section 4 shall (i) bear simple interest at the Prime Interest Rate
as published in the Wall Street Journal on the date such payment becomes due
plus one percent (1%), from the date such payment is due and owing to the date
such payment is made, (ii) remain outstanding until the earliest practicable
date on which Holdings is able to make payment therefor and (iii) reflect the
priorities set forth in paragraphs (a)-(d) immediately above.  All payments of interest accrued hereunder
shall be paid only at the date of payment by Holdings for the Vested Equity
being purchased.

 

4.2.                                  Involuntary Transfers.  In the case of any transfer of title or
beneficial ownership of any Vested Equity upon default, foreclosure, forfeit,
divorce, court order or otherwise than by a voluntary decision on the part of a
Management Stockholder (each, an “Involuntary Transfer”), Holdings (or
any permitted assignee thereof) shall have the right to purchase such Vested
Equity pursuant to this Section 4.2. 
Upon the Involuntary Transfer of any Vested Equity, such Management
Stockholder shall promptly (but in no event later than two (2) business days
after such Involuntary Transfer) furnish written notice (the “Notice”)
to Holdings indicating that the Involuntary Transfer has occurred, specifying
the name of the Person to whom such Vested Equity has been transferred (the “Involuntary
Transferee”), giving a detailed description of the circumstances giving
rise to, and stating the legal basis for, the Involuntary Transfer.  Upon the

 

10

 

receipt
of the Notice, and for sixty (60) calendar days thereafter, Holdings (or a
permitted assignee thereof) shall have the right to purchase, and the
Involuntary Transferee shall have the obligation to sell, all (but not less
than all) of the Vested Equity acquired by the Involuntary Transferee for a
purchase price equal to the lesser of (a) the Fair Market Value of such Vested
Equity as determined in accordance with Section 3.2 hereof and (b) the
amount of the indebtedness or other liability that gave rise to the Involuntary
Transfer plus the excess, if any, of the Carrying Value of such Vested Equity
over the amount of such indebtedness or other liability that gave rise to the
Involuntary Transfer.

 

5.                                               Termination of Rights and Obligations
Under Certain Sections. 
All rights and obligations pursuant to Sections 1, 2, 3, 4.2, 6, 7, 9,
10 and 11 of this Agreement shall terminate upon the closing of a public
offering pursuant to a Registration Statement (a “Registration”) that
covers (together with prior Registrations) (a) not less than 50% of the
outstanding shares of Common Stock on a fully-diluted basis or (b) shares of
Common Stock that, after the closing of such public offering, will be traded on
the New York Stock Exchange, the American Stock Exchange or the NASDAQ National
Market, Inc.  Without limiting the
foregoing, this Agreement or any portion thereof shall terminate upon the
written consent of Holdings, Warburg Pincus and the Majority Management
Stockholders.

 

6.                                               Legend.  A copy
of this Agreement shall be filed with the Secretary of Holdings and kept with
the records of Holdings.  Each
certificate or other instrument representing shares of Common Stock and, if
applicable, Options, owned by any Stockholder shall bear upon its face the
following legend:

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE OR OTHER INSTRUMENT ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND
OTHER CONDITIONS, AS SPECIFIED IN THE MANAGEMENT STOCKHOLDERS’ AGREEMENT, DATED
AS OF JULY 22, 2003 BY AND AMONG TD HOLDING CORPORATION (“HOLDINGS”),
WARBURG PINCUS PRIVATE EQUITY VIII, L.P. AND THOSE EMPLOYEES OF TRANSDIGM INC.
AND ITS SUBSIDIARIES LISTED ON SCHEDULE I ATTACHED THERETO (THE “MANAGEMENT
STOCKHOLDERS’ AGREEMENT”).  COPIES
OF THE MANAGEMENT STOCKHOLDERS’ AGREEMENT ARE ON FILE AT THE OFFICE OF HOLDINGS
AND WILL BE FURNISHED WITHOUT CHARGE TO THE HOLDER OF SUCH SECURITIES UPON
WRITTEN REQUEST.

 

In addition, certificates representing shares of Common Stock shall
bear any legends required by the applicable laws of any states.  All Management Stockholders shall be bound
by the requirements of the foregoing legend. 
Upon a Registration that covers any shares of Common Stock, and provided
that the terms of this Section 6 terminate in connection with such
Registration pursuant to the terms of Section 5 hereof, the certificate
representing such shares shall be replaced, at the expense of Holdings, with
certificates not bearing the foregoing legend.

 

11

 

7.                                               Covenants, Representation and
Warranties.

 

7.1.                                  New Management Stockholders.  Holdings, Warburg Pincus and each of the
Management Stockholders hereby agree that any employee of Holdings or any
subsidiary thereof who, after the date of this Agreement, is offered shares of
any class of capital stock of Holdings or holds stock options to purchase
shares of capital stock of Holdings shall, as a condition precedent to the
acquisition of such shares or the grant of such options, (a) become a party to
this Agreement by executing a joinder agreement, a form of which is attached as
Exhibit A hereto, and (b) if such employee is a resident of a state with
a community property system, cause his or her spouse to execute a Spousal
Waiver in form and substance satisfactory to the Committee and deliver such
joinder agreement and Spousal Waiver, if applicable, to Holdings at its address
specified in Section 15 hereof. 
Upon such execution and delivery, such employee shall be a Management
Stockholder for all purposes of this Agreement and Options or any shares of
capital stock owned by such Management Stockholder or issuable to such
Management Stockholder upon exercise of any Options, shall be considered Shares
or Options, as applicable, for all purposes of this Agreement, except as
otherwise set forth in the joinder agreement.

 

7.2.                                  No Other Arrangements or Agreements.  Each Management Stockholder hereby
represents and warrants to Holdings and Warburg Pincus that, except as set
forth in this Agreement and except for (a) the Stockholders’ Agreement, (b) if
applicable, that certain Registration Rights Agreement, dated as of the date
hereof, among Holdings and the other parties named therein, (c) any written
employment agreement between such Management Stockholder and Holdings or a
subsidiary thereof, (d) any Option Agreement between such Management
Stockholder and Holdings and (e) if applicable, the Roll-Over Agreement to
which such Management Stockholder is a party, each as amended from time to
time, he or she has not entered into or agreed to be bound by any other
arrangements or agreements of any kind with any other party with respect to any
shares of capital stock or Options of Holdings or any interest therein,
including, but not limited to, arrangements or agreements with respect to the
acquisition, disposition or voting of any shares of capital stock or Options of
Holdings or any interest therein, as applicable (whether or not such
arrangements and agreements are with Holdings, any subsidiary thereof, other
Management Stockholders or holders of capital stock or Options of Holdings that
are not parties to this Agreement). 
Each Management Stockholder agrees that, except as disclosed above, he
or she will not enter into any such other arrangements or agreements as he or
she has represented and warranted to above with any other party so long as any
of the terms of this Agreement remain in effect, except for any such agreement
with Holdings entered into in connection with the grant of any Options pursuant
to the Plan or any other equity incentive plan of Holdings and except as
reasonably necessary to effect any transaction relating to the Shares or
Options required or permitted under the Stockholders’ Agreement.

 

8.                                               Amendment, Modification,
Supplement and Waiver. 
This Agreement may be amended, modified or supplemented, and the
enforcement of any provision hereof may be waived, with, and only with, the
prior written consent of Holdings, Warburg Pincus and the Majority Management
Stockholders.  If Holdings, Warburg
Pincus and the Majority Management Stockholders shall have so agreed, any such
amendment, modification, supplement or waiver shall be effective with respect
to all Management Stockholders hereunder, whether or not such Management
Stockholder shall have agreed to such amendemnt, modification, supplement or
waiver, and Holdings shall promptly notify all other Management Stockholders
who have not so

 

12

 

agreed of the material terms of such amendment,
modification, supplement or waiver and the effective date thereof.

 

9.                                               Parties.

 

9.1.                                  Assignment by Holdings.  Subject to the provisos set forth herein,
Holdings shall have the right to assign to one or more Permitted Warburg
Assignees, all or any portion of its rights and obligations under Sections 1, 2
and 4.2; provided, however, in no event shall any such Permitted
Warburg Assignee be required to accept any such assignment or assume any
obligations of Holdings under the foregoing Sections, it being understood and
agreed that the acceptance of any such assignment and the assumption of any
such obligations shall be in the sole and absolute discretion of the Permitted
Warburg Assignee; provided, further  however, that the
acceptance by a Permitted Warburg Assignee of the assigment of any rights and
the assumption of any related obligations under the foregoing Sections in any
one instance shall in no way be construed to require any Permitted Warburg
Assignee to accept any assigment or assume any obligations with respect to any
future event or transaction.  If
Holdings has not exercised (or, pursuant to Section 4.1 hereof, is not
permitted to exercise) its right to purchase Vested Equity pursuant to any such
Sections within twenty (20) calendar days of receipt by Holdings of the letter
or notice giving rise to such right (or, in the case of Section 2, the
giving of notice by Holdings), then Warburg Pincus shall have the right, but
shall be under no obligation, to require Holdings to assign such right to one
or more Permitted Warburg Assignees.  If
such right to purchase is assigned to a Permitted Warburg Assignee or Permitted
Warburg Assignees pursuant to this Section 9.1, such Permitted Warburg
Assignee or Permitted Warburg Assignees shall have all the rights and
obligations of Holdings for purposes of such purchase, and only such purchase,
under Section 1, 2 or 4.2, as the case may be.

 

9.2.                                  Assignment Generally.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective heirs, legal representatives, successors and assigns; provided,
no Management Stockholder shall be permitted to assign any of his, her or its
obligations pursuant to this Agreement without the prior written consent of
Holdings and Warburg Pincus, unless such assignment is in connection with a
Transfer explicitly permitted by this Agreement and the Stockholders’ Agreement
and, prior to such assignment, such assignee complies with the applicable
requirements of this Agreement and the Stockholders’ Agreement.

 

9.3.                                  Termination. 
Any party to, or Person who is subject to, this Agreement which ceases
to own any shares of Common Stock or any interest therein (assuming conversion
of all Options) shall cease to be a party to, or Person who is subject to, this
Agreement and thereafter shall have no rights or obligations hereunder; provided,
however, that a Transfer of shares of Common Stock or Options not
explicitly permitted under this Agreement shall not relieve any Management
Stockholder of any of his, her or its obligations hereunder.

 

9.4.                                  Agreements to Be Bound.  Notwithstanding anything to the contrary
contained in this Agreement, any Transfer of shares of Common Stock by a
Management Stockholder shall be permitted under the terms of this Agreement
only if the transferee (i) shall agree in writing to be bound by the terms and
conditions of this Agreement and shall evidence such agreement by executing a
joinder agreement, the form of which is attached as Exhibit A hereto and
(ii) shall

 

13

 

cause
his or her spouse, if any, to execute a Spousal Waiver in form and substance
satisfactory to the Committee, if such transferee is an individual who resides
in a state with a community property system. 
Upon the execution of the joinder agreement and, if applicable, the
Spousal Waiver by the spouse of such transferee, such transferee shall be
deemed to be a Management Stockholder and all shares of Common Stock so
Transferred shall be deemed Shares for all purposes of this Agreement, except
as otherwise provided in the joinder agreement; provided, however,
that Sections 1 and 2 of this Agreement shall not apply to shares of Common
Stock acquired by any transferee pursuant to Section 4 of the
Stockholders’ Agreement.

 

10.                                      Recapitalizations, Exchanges, etc.
Affecting the Shares. 
Except as otherwise provided herein, the provisions of this Agreement
shall apply to the full extent set forth herein with respect to (a) the Shares
and the Options and (b) any and all shares of capital stock of Holdings or any
successor or assign of Holdings (whether by merger, consolidation, sale of
assets or otherwise) which may be issued in respect of, in exchange for, or in
substitution for the Shares or Options, by reason of any stock dividend, split,
reverse split, combination, recapitalization, reclassification, merger,
consolidation or otherwise.  Except as
otherwise expressly provided herein, this Agreement is not intended to confer,
and does not confer, upon any Person, except for the parties hereto, any rights
or remedies hereunder.

 

11.                                      Transfer of Common Stock.  If at any time Holdings (or any permitted
assignee thereof) purchases any Shares or other Vested Equity pursuant to this
Agreement, Holdings (or any permitted assignee thereof) may pay the purchase
price determined under this Agreement for the Shares or other Vested Equity it
purchases by wire transfer of funds or company check in the amount of the
purchase price, and upon receipt of payment of such purchase price or, pursuant
to Section 2.3 or Section 4, any portion thereof, the selling
Management Stockholder shall deliver the certificates or other instruments
representing the number of Shares or other Vested Equity being purchased in a
form suitable for transfer, duly endorsed in blank, and free and clear of any
lien, claim or encumbrance. 
Notwithstanding anything in this Agreement to the contrary, Holdings (or
any permitted assignee thereof) shall not be required to make any payment for
Shares or other Vested Equity purchased hereunder until delivery to it of the
certificates or other instruments representing such Shares or other Vested
Equity.  If Holdings (or any permitted
assignee thereof) is purchasing less than all the Shares or other Vested Equity
represented by a single certificate or other instrument, Holdings shall deliver
to the selling Management Stockholder a certificate or other instrument for any
unpurchased Shares or Vested Equity.

 

12.                                      Further Assurances.  Each party hereto or Person subject hereto
shall do and perform or cause to be done and performed all such further acts
and things and shall execute and deliver all such other agreements,
certificates, instruments and documents as any other party hereto or Person
subject hereto may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

 

13.                                      Governing Law. 
This Agreement and the rights and obligations of the parties hereunder
and the Persons subject hereto shall be governed by, and construed and
interpreted in accordance with, the laws of the State of Delaware, without
giving effect to the choice of law principles thereof.

 

14

 

14.                                      Invalidity, of Provision.  The invalidity or unenforceability of any
provision of this Agreement in any jurisdiction shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of this Agreement, including that provision, in
any other jurisdiction.

 

15.                                      Notices.  All
notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been duly given if (a) delivered personally, (b) mailed,
certified or registered mail with postage prepaid, (c) sent by next-day or
overnight mail or delivery or (d) sent by telecopy (including facsimile) or
telegram, as follows:

 

(i)                                           If
to Holdings, to it at:

 

c/o TransDigm Holding
Company

26380 Curtiss Wright Parkway

Richmond Heights, Ohio 44143

Facsimile No.: (216) 289-4937

Attention: Corporate Secretary

 

with a copy to:

 

Warburg Pincus Private
Equity VIII, L.P. 

c/o Warburg Pincus LLC 

466 Lexington Avenue

New York, New York 10017

Facsimile No.: (212) 878-9100

Attention: Kewsong Lee

David Barr

 

(ii)                                      If
to a Management Stockholder, to him or her at the address or facsimile number
listed on the signature page hereto or as such Management Stockholder shall
designate to Holdings in writing in accordance with the terms hereof, with a
copy to Warburg Pincus at its address indicated herein.

 

(iii)                                 If
to Warburg Pincus, to it at:

 

Warburg Pincus Private
Equity VIII, L.P. 

c/o Warburg Pincus LLC 

466 Lexington Avenue

New York, New York 10017

Facsimile No.: (212) 878-9100

Attention: Kewsong Lee

David Barr

 

with a copy to:

 

Willkie Farr &
Gallagher 

787 Seventh Avenue

 

15

 

New York, New York 10019

Facsimile No.: (212) 728-8111

Attention: Steven J. Gartner, Esq.

 

or to such other Person or address as any party shall specify by notice
in writing to Holdings, with a copy to Warburg Pincus at its address indicated
herein.  Any notice so addressed shall
be deemed to be given: if delivered personally or by telecopy (including
facsimile) or telegram, on the date of such delivery, if a business day,
otherwise on the first business day thereafter; if mailed by certified or
registered mail with postage prepaid, on the third business day after the date
of such mailing, and if sent by next-day or overnight mail or delivery, on the
first business day following the date of such mailing or delivery.

 

16.                                      Headings: Execution in Counterpart.  The headings and captions contained herein
are for convenience only and shall not control or affect the meaning or
construction of any provision hereof. 
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original and which together shall constitute one
and the same instrument.

 

17.                                      Entire Agreement.  This Agreement, together with the other agreements and documents
referenced herein, including in the recitals hereto (collectively, the “Other
Agreements”), embodies the entire agreement and understanding of the
parties hereto in respect of the subject matter contained herein.  There are no restrictions, promises,
representations, warranties, covenants or undertakings relating to the Shares
or the Options, other than those expressly set forth or referred to herein and
other than those set forth in the Other Agreements.  This Agreement and the Other Agreements supersede all prior
agreements and understandings among the parties with respect to such subject
matter, and it is the understanding of all parties hereto that any such prior
agreement is hereby terminated, null and void as of the Closing Date.

 

18.                                      Injunctive Relief.  The Shares cannot readily be purchased or sold in the open
market, and for that reason, among others, Holdings, Warburg Pincus and the
Management Stockholders will be irreparably damaged in the event this Agreement
is not specifically enforced.  Each of
the parties therefore agrees that in the event of a breach of any provision of
this Agreement, the aggrieved party may elect to institute and prosecute
proceedings in any court of competent jurisdiction to enforce specific
performance or to enjoin the continuing breach of this Agreement.  Such remedies shall, however, be cumulative
and not exclusive, and shall be in addition to any other remedy which Holdings,
Warburg Pincus or the Management Stockholders may have.  Each party hereto hereby irrevocably submits
to the non-exclusive jurisdiction of the state and federal courts in New York
for the purposes of any suit, action or other proceeding arising out of or
based upon this Agreement or the subject matter hereof.  Each party hereto hereby consents to service
of process by mail made in accordance with Section 15.

 

19.                                      Defined Terms. 
As used in this Agreement, the following terms shall have the meanings
ascribed to them below:

 

19.1.                         Affiliate. 
“Affiliate” shall mean, with respect to any Person, a Person directly or
indirectly, through one or more intermediaries, controlling, controlled by, or
under common control with, such Person.

 

16

 

19.2.                         Cause.  The term
“Cause,” used in connection with the termination of employment of a Management
Stockholder, shall mean either of the following: (a) the repeated failure by a
Management Stockholder, after written notice from the Board, substantially to
perform his material duties and responsibilities as an officer or employee or
director of Holdings or any of its subsidiaries (other than any such failure
resulting from incapacity due to reasonably documented physical or mental
illness), or (b) any willful misconduct by a Management Stockholder that has
the effect of materially injuring the business of Holdings or any of its
subsidiaries, including, without limitation, the disclosure of material secret
or confidential information of Holdings or any of its subsidiaries. Notwithstanding
the foregoing, to the extent a Management Stockholder is party to an employment
agreement with Holdings or any subsidiary thereof, and such agreement contains
a definition of the term “Cause,” the definition in any such agreement shall
control with respect to such Management Stockholder.

 

19.3.                         Closing Date. 
The “Closing Date” shall mean the date on which the transactions
contemplated by the Merger Agreement close.

 

19.4.                         Disability. 
The termination of the employment of any Management Stockholder by
Holdings or any of its subsidiaries shall be deemed to be by reason of a
“Disability” if a Management Stockholder is unable to perform his or her duties
and responsibilities as an officer, director or employee of Holdings or any of
its subsidiaries on a full-time basis for more than six (6) months within any
twelve (12) month period because of a physical, mental or emotional incapacity
resulting from injury, sickness or disease. 
Notwithstanding the foregoing, to the extent a Management Stockholder is
party to an employment agreement with Holdings or any subsidiary thereof, and
such agreement contains a definition of the term “Disability,” the definition
in any such agreement shall control with respect to such Management
Stockholder.

 

19.5.                         Exchange Act. 
“Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended.

 

19.6.                         Good Reason. 
The termination of a Management Stockholder’s employment with Holdings
or any of its subsidiaries shall be for “Good Reason” if such Management
Stockholder voluntarily terminates his or her employment with Holdings or a
subsidiary as a result of any of the following: (a) a material diminution in a
Management Stockholder’s title, duties or responsibilities, without his or her
prior written consent, (b) a reduction of a Management Stockholder’s aggregate
cash compensation (including bonus opportunities), benefits or perquisites,
without his or her prior written consent or (c) Holdings or any subsidiary
thereof requires the Management Stockholder, without his or her prior written
consent, to be based at any office or location that requires a relocation
greater than thirty (30) miles from the location at which such Management
Stockholder works as of the date hereof. 
Notwithstanding the foregoing, to the extent a Management Stockholder is
party to an employment agreement with Holdings or any subsidiary thereof, and
such agreement contains a definition of the term “Good Reason,” the definition
in any such agreement shall control with respect to such Management Stockholder.

 

19.7.                         Majority Management Stockholders.  “Majority Management Stockholders” as of any
date of determination shall mean those Management Stockholders who beneficially
own

 

17

 

(within
the meaning of Rule 13d-3 under the Exchange Act) fifty percent (50%) or more
of the total combined voting power of all Shares then held by the Management
Stockholders.

 

19.8.                         Options. 
“Options” shall mean all options to purchase shares of Common Stock
granted to or held by a Management Stockholder at any time when this Agreement
is in effect (including, where applicable, Roll-Over Options).

 

19.9.                         Permitted Warburg Assignee.  A “Permitted Warburg Assignee” shall mean
any Affiliate of Warburg Pincus.

 

19.10.                Permitted Transferee. The term “Permitted
Transferee” shall have the meaning set forth in the Stockholders’ Agreeement.

 

19.11.                Person.  “Person” shall mean an individual,
partnership, corporation, limited liability company, business trust, joint
stock company, trust, unincorporated association, joint venture, governmental
authority or other entity of whatever nature.

 

19.12.                Roll-Over Shares.  “Roll-Over Shares” shall mean those shares of Common Stock that
are acquired by a Management Stockholder upon exercise of a Roll-Over Option.

 

19.13.                Transfer. 
“Transfer” (or any variation thereof used herein) shall mean any direct
or indirect sale, assignment, mortgage, transfer, pledge, hypothecation or
other disposal.

 

[signature pages follow]

 

18

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  WARBURG PINCUS PRIVATE EQUITY VIII, L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Warburg Pincus & Co., General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ David
  Barr

  	
   

  
	
   

  	
  Name: David
  Barr

  
	
   

  	
  Title:
  Partner

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  MANAGEMENT STOCKHOLDERS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
   

  	
   

  	
  W. Nicholas
  Howley

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gregory
  Rufus

  	
   

  
	
   

  	
   

  	
   

  	
  Gregory
  Rufus

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Douglas
  Peacock

  	
   

  
	
   

  	
   

  	
   

  	
  Douglas
  Peacock

  	
   

  
										

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Ray
  Laubenthal

  	
   

  
	
   

  	
   

  	
   

  	
  Ray
  Laubenthal

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ James
  Riley

  	
   

  
	
   

  	
   

  	
   

  	
  James Riley

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ James
  Skulina

  	
   

  
	
   

  	
   

  	
   

  	
  James
  Skulina

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Rose
  DiFranco

  	
   

  
	
   

  	
   

  	
   

  	
  Rose DiFranco

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Roger
  Jones

  	
   

  
	
   

  	
   

  	
   

  	
  Roger Jones

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W. Nicholas
  Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Robert
  Henderson

  	
   

  
	
   

  	
   

  	
   

  	
  Robert
  Henderson

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Hosrow
  Bordbar

  	
   

  
	
   

  	
   

  	
   

  	
  Hosrow
  Bordbar

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Peter
  Palmer

  	
   

  
	
   

  	
   

  	
   

  	
  Peter Palmer

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Fred
  Ching

  	
   

  
	
   

  	
   

  	
   

  	
  Fred Ching

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Cindy
  Terakawa

  	
   

  
	
   

  	
   

  	
   

  	
  Cindy
  Terakawa

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ John Leary

  	
   

  
	
   

  	
   

  	
   

  	
  John Leary

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Kevin
  McHenry

  	
   

  
	
   

  	
   

  	
   

  	
  Kevin
  McHenry

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Joel
  Reiss

  	
   

  
	
   

  	
   

  	
   

  	
  Joel Reiss

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Thomas
  Sievers

  	
   

  
	
   

  	
   

  	
   

  	
  Thomas
  Sievers

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Vicki
  Saugstad

  	
   

  
	
   

  	
   

  	
   

  	
  Vicki
  Saugstad

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Todd
  Littleton

  	
   

  
	
   

  	
   

  	
   

  	
  Todd
  Littleton

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Bernie
  Iversen

  	
   

  
	
   

  	
   

  	
   

  	
  Bernie Iversen

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ James
  Liddle

  	
   

  
	
   

  	
   

  	
   

  	
  James Liddle

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Jeffrey
  Falkenberry

  	
   

  
	
   

  	
   

  	
   

  	
  Jeffrey
  Falkenberry

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Albert
  J. Rodriguez

  	
   

  
	
   

  	
   

  	
   

  	
  Albert J.
  Rodriguez

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Sergio
  Rodriguez

  	
   

  
	
   

  	
   

  	
   

  	
  Sergio
  Rodriguez

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gary
  McMurtrey

  	
   

  
	
   

  	
   

  	
   

  	
  Gary
  McMurtrey

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Chuck
  Burger

  	
   

  
	
   

  	
   

  	
   

  	
  Chuck Burger

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ J. Glyn
  Vorderkunz

  	
   

  
	
   

  	
   

  	
   

  	
  J. Glyn
  Vorderkunz

  
							

 

 

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

 

	
   

  	
   

  	
   

  	
  TD HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Nicholas
  Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
  BRATENAHL INVESTMENTS, LTD.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W.
  Nicholas Howley

  	
   

  
	
   

  	
  Name: W.
  Nicholas Howley

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

SCHEDULE
I

 

MANAGEMENT
STOCKHOLDERS

 

Douglas W. Peacock 

10901 Burnt Mill Rd., #2104

Jacksonville, FL  32256

 

W. Nicholas Howley

10494 Lakeshore Blvd.

Bratenahl, OH  44108-1063

 

Bratenahl Investments, Ltd.

c/o W. Nicholas Howley

10494 Lakeshore Blvd.

Bratenahl, OH 44108-1063

 

Gregory Rufus

32346 Brandon Place

Avon Lake, OH  44012

 

Ray Laubenthal 

9110 Oakstone Trail

Chardon Township, OH  44024

 

James Riley

2086 Baxterly Avenue

Lakewood, OH  44107

 

Rose DiFranco 

5928 Blakely

Highland Heights, OH  44143

 

James Skulina 

7736 Ellington Place

Mentor, OH  44060

 

Roger Jones 

34950 Ada Drive

Solon, OH  44139

 

Robert Henderson 

1645 Alamitas Ave.

Monrovia, CA 
91016

 

Hosrow Bordbar

26871 Preciados Dr

Mission Viejo, CA  92691

 

 

Fred Ching 

3932 Skycrest Drive

Pasadena, CA 
91107

 

Peter Palmer

1717 Camden Ave

South Pasadena, CA  91030

 

Cindy Terakawa

629 Pencin Drive

Whittier, CA 
90601

 

John Leary 

27830 Elk Mt. Drive

Yorba Linda, CA  92887

 

Kevin McHenry 

27532 Caesars Place

Laguna Niguel, CA  92677

 

Joel Reiss 

1206 Stephanie Drive

Corona, CA  92882

 

Vicki Saugstad

4209 Vermont Street

Long Beach, CA  90814

 

Tom Sievers

29632 Novacella

Laguna Niguel, CA  92677

 

Todd Littleton

206 East Crest Drive

Simpsonville, SC  29681

 

Jeffrey Faulkenberry

420 Phillips Lane

Greer, SC  29650

 

Bernie Iversen

113 Greenleaf

Easley, SC  29642

 

James Liddle

1520 Old Mill Road

Easley, SC  29642

 

 

Albert J. Rodriguez

114 Greentree

Crawford, TX 76638

 

Sergio Rodriguez

115 Whistling Wind Trail

McGregor, TX 76657

 

Chuck Burger

300 Telluride

Waco, TX 76712

 

J. Glyn Vorderkunz

510 Kiowa Lane

Waco, TX 76706

 

Gary McMurtrey

925 Austin Hines Drive

China Springs TX  76633

 

 

EXHIBIT
A

 

[FORM
OF JOINDER AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]