Document:

EXHIBIT 10.3

                             TRAINING TOGETHER, INC.
                       6025 SOUTH QUEBEC STREET, SUITE 150
                            ENGLEWOOD, COLORADO 80111
                       TEL. 720.489.8873 FAX 720.489.8874

                                 August 1, 2002
Fitness for Life Franchise Corporation
1111 Anabar Drive
Castle Rock, Colorado 80104

Attn:   Richard F. Sikorski, President

Re:     Training Together, Inc. - The Personal Trainer, LLC
        Payment of Rebates - Equipment Purchase

Dear Mr. Sikorski:

     Previously, we have discussed with you the allocation of funds received by
your company from equipment vendors, relating to equipment to be purchased by
Training Together, Inc. ("TTI") for franchised locations to be opened in
Florida, or elsewhere. The Personal Trainer, LLC holds the master franchise for
Florida.

     Attached is page 17 from your company's Uniform Franchise Offering
Circular, which states that (1) VECTRA Fitness, Pro Maxima, and Life Fitness pay
your company rebates of 10% of purchases; and (2) your company keeps 100% of
rebates received.

     By your signature below, your company agrees that 50% of all rebates
received by your company from the named vendors, and from any other vendors, for
equipment purchased by TTI, will be paid over to TTI. Your company will retain
50% of such rebates. None of such rebates will be paid to The Personal Trainer.

     Please sign this letter and fax to 720.489.8874, and send the original to
our office at the above address. If you want to discuss this matter, please
call. Thank you.

                                            Yours Sincerely,

                                              /s/  David C. Olson, CEO

     Read and agreed to on    8/1   , 2002
                           ---------

       /s/  Richard F. Sikorski
     Richard F. Sikorski, President
     Fitness for Life Corporation

     Read and agreed to on    8/2   , 2002
                           ---------

     The Personal Trainer, LLC

       /s/  Thomas M. Vickers, Jr.            /s/  John D. Woolford
     ----------------------------------     ------------------------------------
     Thomas M. Vickers, Jr., Manager        John D. Woolford, Manager

                                       106

<PAGE>EXHIBIT 4.1

 

 

 

 

TD
FUNDING CORPORATION

to be merged with and into TRANSDIGM INC.,

 

 

TD
ACQUISITION CORPORATION

to be merged with and into TRANSDIGM HOLDING COMPANY,

 

 

THE
GUARANTORS named herein

 

 

and

 

 

THE
BANK OF NEW YORK, as Trustee

 

 

INDENTURE

 

Dated
as of July 22, 2003

 

 

83/8%
Senior Subordinated Notes due 2011

 

 

 

 

 

CROSS-REFERENCE
TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture

  Section

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(5)

  	
   

  	
  7.10

  
	
   

  	
  (i)(b)

  	
   

  	
  7.10

  
	
   

  	
  (ii)(c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (iii)(c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  13.03

  
	
   

  	
  (iv)(c)

  	
   

  	
  13.03

  
	
  313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)(2)

  	
   

  	
  7.07

  
	
   

  	
  (v)(c)

  	
   

  	
  7.06; 13.02

  
	
   

  	
  (vi)(d)

  	
   

  	
  7.06

  
	
  314

  	
  (a)

  	
   

  	
  4.03; 13.02

  
	
   

  	
  (c)(1)

  	
   

  	
  13.04

  
	
   

  	
  (c)(2)

  	
   

  	
  13.04

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (f)

  	
   

  	
  NA

  
	
  315

  	
  (a)

  	
   

  	
  7.01

  
	
   

  	
  (b)

  	
   

  	
  7.05, 13.02

  
	
   

  	
  (A)(c)

  	
   

  	
  7.01

  
	
   

  	
  (d)

  	
   

  	
  7.01

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
  318

  	
  (a)

  	
   

  	
  13.01

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)

  	
   

  	
  13.01

  

 

N.A. means not applicable.

*              This
Cross-Reference Table is not part of the Indenture.

 

2

 

Table
of Contents

 

	
  ARTICLE 1

  
	
   

  	
   

  
	
  Definitions and Incorporation
  by Reference

  
	
   

  	
   

  
	
  SECTION 1.01.

  	
  Definitions

  	
  8

  
	
  SECTION 1.02.

  	
  Other
  Definitions

  	
  31

  
	
  SECTION 1.03.

  	
  Trust Indenture Act
  Definitions

  	
  31

  
	
  SECTION 1.04.

  	
  Rules
  of Construction

  	
  32

  
	
   

  	
   

  
	
  ARTICLE 2

  
	
   

  	
   

  
	
  The Notes

  
	
   

  	
   

  
	
  SECTION 2.01.

  	
  Form and Dating

  	
  32

  
	
  SECTION 2.02.

  	
  Execution and
  Authentication

  	
  33

  
	
  SECTION 2.03.

  	
  Registrar and Paying Agent

  	
  33

  
	
  SECTION 2.04.

  	
  Paying Agent to
  Hold Money in Trust

  	
  34

  
	
  SECTION 2.05.

  	
  Holder Lists

  	
  34

  
	
  SECTION 2.06.

  	
  Transfer
  and Exchange

  	
  34

  
	
  SECTION 2.07.

  	
  Replacement
  Notes

  	
  36

  
	
  SECTION 2.08.

  	
  Outstanding
  Notes

  	
  36

  
	
  SECTION 2.09.

  	
  Treasury Notes

  	
  37

  
	
  SECTION 2.10.

  	
  Temporary Notes

  	
  37

  
	
  SECTION 2.11.

  	
  Cancellation

  	
  37

  
	
  SECTION 2.12.

  	
  Defaulted
  Interest

  	
  37

  
	
  SECTION 2.13.

  	
  CUSIP
  or ISIN Numbers

  	
  38

  
	
  SECTION 2.14.

  	
  Issuance of Additional
  Notes

  	
  38

  
	
   

  	
   

  
	
  ARTICLE 3

  
	
   

  	
   

  
	
  Redemption and Prepayment

  
	
   

  
	
  SECTION 3.01.

  	
  Notices
  to Trustee

  	
  38

  
	
  SECTION 3.02.

  	
  Selection of Notes to
  Be Redeemed

  	
  39

  
	
  SECTION 3.03.

  	
  Notice
  of Redemption

  	
  39

  
	
  SECTION 3.04.

  	
  Effect of Notice of
  Redemption

  	
  40

  
	
  SECTION 3.05.

  	
  Deposit of Redemption Price

  	
  40

  
	
  SECTION 3.06.

  	
  Notes
  Redeemed in Part

  	
  40

  
	
  SECTION 3.07.

  	
  Optional
  Redemption

  	
  40

  
	
  SECTION 3.08.

  	
  Mandatory
  Redemption; Open Market Purchases

  	
  41

  
	
  SECTION 3.09.

  	
  Offer
  to Purchase by Application of Net Proceeds Offer Amount

  	
  41

  
				

 

3

 

	
  ARTICLE 4

  
	
   

  	
   

  
	
  Covenants

  
	
   

  	
   

  
	
  SECTION 4.01.

  	
  Payment of Notes

  	
  43

  
	
  SECTION 4.02.

  	
  Maintenance of Office
  or Agency

  	
  44

  
	
  SECTION 4.03.

  	
  Reports

  	
  44

  
	
  SECTION 4.04.

  	
  Compliance
  Certificate

  	
  45

  
	
  SECTION 4.05.

  	
  [Intentionally
  Omitted]

  	
  46

  
	
  SECTION 4.06.

  	
  Stay, Extension and
  Usury Laws

  	
  46

  
	
  SECTION 4.07.

  	
  Restricted
  Payments

  	
  46

  
	
  SECTION 4.08.

  	
  Dividend
  and Other Payment Restrictions Affecting Subsidiaries

  	
  51

  
	
  SECTION 4.09.

  	
  Incurrence of Indebtedness

  	
  52

  
	
  SECTION 4.10.

  	
  Asset Sales

  	
  52

  
	
  SECTION 4.11.

  	
  Transactions with
  Affiliates

  	
  54

  
	
  SECTION 4.12.

  	
  Liens

  	
  55

  
	
  SECTION 4.13.

  	
  Conduct
  of Business

  	
  56

  
	
  SECTION 4.14.

  	
  Corporate
  Existence

  	
  56

  
	
  SECTION 4.15.

  	
  Offer to
  Repurchase upon Change of Control

  	
  56

  
	
  SECTION 4.16.

  	
  No Senior Subordinated Debt

  	
  57

  
	
  SECTION 4.17.

  	
  Additional
  Guarantees

  	
  58

  
	
  SECTION 4.18.

  	
  Limitation
  on Preferred Stock of Restricted Subsidiaries

  	
  58

  
	
   

  	
   

  
	
  ARTICLE 5

  
	
   

  	
   

  
	
  Successors

  
	
   

  	
   

  
	
  SECTION 5.01.

  	
  Merger,
  Consolidation, or Sale of Assets

  	
  58

  
	
  SECTION 5.02.

  	
  Successor Corporation
  Substituted

  	
  59

  
	
   

  	
   

  
	
  ARTICLE 6

  
	
   

  	
   

  
	
  Defaults and Remedies

  
	
   

  	
   

  
	
  SECTION 6.01.

  	
  Events of
  Default

  	
  60

  
	
  SECTION 6.02.

  	
  Acceleration

  	
  61

  
	
  SECTION 6.03.

  	
  Other Remedies

  	
  62

  
	
  SECTION 6.04.

  	
  Waiver
  of Past Defaults

  	
  62

  
	
  SECTION 6.05.

  	
  Control
  by Majority

  	
  62

  
	
  SECTION 6.06.

  	
  Limitation
  on Suits

  	
  62

  
	
  SECTION 6.07.

  	
  Rights of
  Holders of Notes to Receive Payment

  	
  63

  
	
  SECTION 6.08.

  	
  Collection Suit by Trustee

  	
  63

  
	
  SECTION 6.09.

  	
  Trustee
  May File Proofs of Claim

  	
  63

  
	
  SECTION 6.10.

  	
  Priorities

  	
  64

  
	
  SECTION 6.11.

  	
  Undertaking
  for Costs

  	
  64

  

 

4

 

	
  ARTICLE 7

  
	
   

  	
   

  
	
  Trustee

  
	
   

  	
   

  
	
  SECTION 7.01.

  	
  Duties of Trustee

  	
  65

  
	
  SECTION 7.02.

  	
  Rights of Trustee

  	
  66

  
	
  SECTION 7.03.

  	
  Individual Rights of
  Trustee

  	
  67

  
	
  SECTION 7.04.

  	
  Trustee’s
  Disclaimer

  	
  67

  
	
  SECTION 7.05.

  	
  Notice of
  Defaults

  	
  67

  
	
  SECTION 7.06.

  	
  Reports by
  Trustee to Holders of the Notes

  	
  67

  
	
  SECTION 7.07.

  	
  Compensation and Indemnity

  	
  68

  
	
  SECTION 7.08.

  	
  Replacement
  of Trustee

  	
  69

  
	
  SECTION 7.09.

  	
  Successor Trustee by
  Merger, etc

  	
  70

  
	
  SECTION 7.10.

  	
  Eligibility;
  Disqualification

  	
  70

  
	
  SECTION 7.11.

  	
  Preferential
  Collection of Claims Against Company

  	
  70

  
	
   

  	
   

  
	
  ARTICLE 8

  
	
   

  	
   

  
	
  Legal Defeasance and
  Covenant Defeasance Section

  
	
   

  	
   

  
	
  SECTION 8.01.

  	
  Option
  to Effect Legal Defeasance or Covenant Defeasance

  	
  70

  
	
  SECTION 8.02.

  	
  Legal Defeasance and
  Discharge

  	
  70

  
	
  SECTION 8.03.

  	
  Covenant
  Defeasance

  	
  71

  
	
  SECTION 8.04.

  	
  Conditions
  to Legal or Covenant Defeasance

  	
  71

  
	
  SECTION 8.05.

  	
  Deposited Money and Government Securities to
  Be Held in Trust; Other Miscellaneous Provisions

  	
  73

  
	
  SECTION 8.06.

  	
  Satisfaction and Discharge

  	
  74

  
	
  SECTION 8.07.

  	
  Repayment
  to Company

  	
  74

  
	
  SECTION 8.08.

  	
  Reinstatement

  	
  74

  
	
  SECTION 8.09.

  	
  Survival

  	
  75

  
	
   

  	
   

  
	
  ARTICLE 9

  
	
   

  	
   

  
	
  Amendment, Supplement and
  Waiver

  
	
   

  	
   

  
	
  SECTION 9.01.

  	
  Without Consent of
  Holders of Notes

  	
  75

  
	
  SECTION 9.02.

  	
  With Consent of
  Holders of Notes

  	
  76

  
	
  SECTION 9.03.

  	
  Compliance with Trust
  Indenture Act

  	
  78

  
	
  SECTION 9.04.

  	
  Revocation and Effect
  of Consents

  	
  78

  
	
  SECTION 9.05.

  	
  Notation on or
  Exchange of Notes

  	
  78

  
	
  SECTION 9.06.

  	
  Trustee to Sign
  Amendments, etc

  	
  78

  

 

5

 

	
  ARTICLE 10

  
	
   

  	
   

  
	
  Subordination

  
	
   

  	
   

  
	
  SECTION 10.01.

  	
  Agreement
  to Subordinate

  	
  78

  
	
  SECTION 10.02.

  	
  Liquidation,
  Dissolution, Bankruptcy

  	
  79

  
	
  SECTION 10.03.

  	
  Default on Senior
  Debt of the Company

  	
  79

  
	
  SECTION 10.04.

  	
  Acceleration of
  Payment of Notes

  	
  80

  
	
  SECTION 10.05.

  	
  When Distribution
  Must Be Paid Over

  	
  80

  
	
  SECTION 10.06.

  	
  Subrogation

  	
  80

  
	
  SECTION 10.07.

  	
  Relative Rights

  	
  81

  
	
  SECTION 10.08.

  	
  Subordination
  May Not Be Impaired by Company

  	
  81

  
	
  SECTION 10.09.

  	
  Rights of Trustee
  and Paying Agent

  	
  81

  
	
  SECTION 10.10.

  	
  Distribution
  or Notice to Representative

  	
  81

  
	
  SECTION 10.11.

  	
  Not
  To Prevent Events of Default or Limit Right To Accelerate

  	
  82

  
	
  SECTION 10.12.

  	
  Trust Moneys Not Subordinated

  	
  82

  
	
  SECTION 10.13.

  	
  Trustee
  Entitled To Rely

  	
  82

  
	
  SECTION 10.14.

  	
  Trustee To
  Effectuate Subordination

  	
  82

  
	
  SECTION 10.15.

  	
  Trustee
  Not Fiduciary for Holders  of Senior
  Debt of the Company

  	
  83

  
	
  SECTION 10.16.

  	
  Reliance
  by Holders of Senior Debt of the Company on Subordination Provisions

  	
  83

  
	
   

  	
   

  
	
  ARTICLE 11

  
	
   

  	
   

  
	
  Guarantees

  
	
   

  	
   

  
	
  SECTION 11.01.

  	
  Guarantees

  	
  83

  
	
  SECTION 11.02.

  	
  Limitation
  on Liability

  	
  85

  
	
  SECTION 11.03.

  	
  Successors
  and Assigns

  	
  85

  
	
  SECTION 11.04.

  	
  No Waiver

  	
  85

  
	
  SECTION 11.05.

  	
  Modification

  	
  85

  
	
  SECTION 11.06.

  	
  Guarantors
  May Consolidate, etc

  	
  86

  
	
  SECTION 11.07.

  	
  Release
  of Guarantor

  	
  88

  
	
  SECTION 11.08.

  	
  Contribution

  	
  88

  
	
   

  	
   

  
	
  ARTICLE 12

  
	
   

  	
   

  
	
  Subordination of
  GuarantEes

  
	
   

  	
   

  
	
  SECTION 12.01.

  	
  Agreement To Subordinate

  	
  88

  
	
  SECTION 12.02.

  	
  Liquidation, Dissolution, Bankruptcy

  	
  89

  
	
  SECTION 12.03.

  	
  Default on Senior
  Debt of Guarantor

  	
  89

  
	
  SECTION 12.04.

  	
  Demand
  for Payment

  	
  90

  
	
  SECTION 12.05.

  	
  When Distribution
  Must Be Paid Over

  	
  90

  
	
  SECTION 12.06.

  	
  Subrogation

  	
  90

  
	
  SECTION 12.07.

  	
  Relative Rights

  	
  90

  

 

6

 

	
  SECTION 12.08.

  	
  Subordination
  May Not Be Impaired by Company

  	
  91

  
	
  SECTION 12.09.

  	
  Rights of Trustee and
  Paying Agent

  	
  91

  
	
  SECTION 12.10.

  	
  Distribution
  or Notice to Representative

  	
  91

  
	
  SECTION 12.11.

  	
  Article 12 Not To Prevent
  Events of Default or Limit Right To Demand Payment

  	
  91

  
	
  SECTION 12.12.

  	
  Trustee
  Entitled To Rely

  	
  92

  
	
  SECTION 12.13.

  	
  Trustee To
  Effectuate Subordination

  	
  92

  
	
  SECTION 12.14.

  	
  Trustee
  Not Fiduciary for Holders of Senior Debt of Guarantor

  	
  92

  
	
  SECTION 12.15.

  	
  Reliance
  by Holders of Senior Debt of Guarantors on Subordination Provisions

  	
  92

  
	
   

  	
   

  
	
  ARTICLE 13

  
	
   

  	
   

  
	
  Miscellaneous

  
	
   

  
	
  SECTION 13.01.

  	
  Trust Indenture Act
  Controls

  	
  93

  
	
  SECTION 13.02.

  	
  Notices

  	
  93

  
	
  SECTION 13.03.

  	
  Communication
  by Holders of Notes with Other Holders of Notes

  	
  94

  
	
  SECTION 13.04.

  	
  Certificate
  and Opinion as to Conditions Precedent

  	
  94

  
	
  SECTION 13.05.

  	
  Statements
  Required in Certificate or Opinion

  	
  95

  
	
  SECTION 13.06.

  	
  Rules by Trustee and Agents

  	
  95

  
	
  SECTION 13.07.

  	
  No
  Personal Liability of Directors, Officers, Employees and Stockholders

  	
  95

  
	
  SECTION 13.08.

  	
  Governing Law

  	
  95

  
	
  SECTION 13.09.

  	
  No
  Adverse Interpretation of Other Agreements

  	
  96

  
	
  SECTION 13.10.

  	
  Successors

  	
  96

  
	
  SECTION 13.11.

  	
  Severability

  	
  96

  
	
  SECTION 13.12.

  	
  Counterpart
  Originals

  	
  96

  
	
  SECTION 13.13.

  	
  Table of Contents,
  Headings, etc

  	
  96

  
	
   

  	
   

  
	
  APPENDIX AND EXHIBITS

  
	
   

  	
   

  
	
   

  	
  RULE 144A/REGULATION S
  APPENDIX

  
	
   

  	
  Exhibit A

  	
  FORM OF INITIAL NOTE

  
	
   

  	
  Exhibit B

  	
  FORM OF EXCHANGE NOTE

  

 

7

 

INDENTURE dated as of
July 22, 2003 among TD Funding Corporation, a Delaware corporation which
will be merged with and into TransDigm Inc., a Delaware corporation, with
TransDigm Inc. continuing as the surviving corporation (the “Company”), TD Acquisition Corporation, a
Delaware corporation, which will be merged with and into TransDigm Holding
Company, a Delaware corporation, with TransDigm Holding Company continuing as
the surviving corporation (the “Parent”),
the Guarantors (as herein defined) and The Bank of New York, a New York banking
corporation, as trustee (the “Trustee”).

 

The Company, the Parent, the
Guarantors and the Trustee agree as follows for the benefit of each other and
for the equal and ratable benefit of the Holders of the Notes:

 

ARTICLE 1

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

SECTION 1.01.                                                                 Definitions.

 

“10 3/8%  Notes”  means
the $200,000,000 aggregate principal amount of 10 3/8%
Senior Subordinated Notes due 2008 issued by TransDigm Inc. under the indenture
dated as of December 3, 1998, as supplemented on April 23, 1999 and
June 26, 2001, among TransDigm Inc., as issuer, the guarantors thereunder
and State Street Bank and Trust Company, as trustee.

 

“Acquired Indebtedness” means Indebtedness of a Person or any
of its Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary of the Company or at the time it merges or consolidates with or into
the Company or any of its Subsidiaries or that is assumed in connection with
the acquisition of assets from such Person and in each case not incurred by
such Person in connection with, or in anticipation or contemplation of, such
Person becoming a Restricted Subsidiary of the Company or such acquisition,
merger or consolidation.

 

“Additional Interest” means all additional interest then
owing pursuant to Section 6 of the Registration Rights Agreement.

 

“Additional Notes” means, subject to the Company’s compliance
with Section 4.03, 83/8% Senior Subordinated Notes
Due 2011 issued from time to time after the Issue Date under the terms of this
Indenture (other than pursuant to Section 2.06, 2.07, 2.09 or 3.06 of this
Indenture and other than Exchange Notes or Private Exchange Notes issued
pursuant to an exchange offer for other Notes outstanding under this
Indenture).

 

“Affiliate” means, with respect to any specified Person, any
other Person who directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified
Person. The term “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting

 

8

 

securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative of the
foregoing. Notwithstanding the foregoing, no Person (other than the Company or
any Subsidiary of the Company) in whom a Securitization Entity makes an
Investment in connection with a Qualified Securitization Transaction shall be
deemed to be an Affiliate of the Company or any of its Subsidiaries solely by
reason of such investment.

 

“Asset Acquisition” means (a) an Investment by the Company or
any Restricted Subsidiary of the Company in any other Person pursuant to which
such Person shall become a Restricted Subsidiary of the Company, or shall be
merged with or into the Company or any Restricted Subsidiary of the Company, or
(b) the acquisition by the Company or any Restricted Subsidiary of the Company
of the assets of any Person (other than a Restricted Subsidiary of the Company)
other than in the ordinary course of business.

 

“Asset Sale” means any direct or indirect sale, issuance,
conveyance, transfer, lease (other than operating leases entered into in the
ordinary course of business), assignment or other transfer for value by the
Company or any of its Restricted Subsidiaries (including, without limitation,
any Sale and Leaseback Transaction) to any Person other than the Company or a
Restricted Subsidiary of the Company of: 
(a) any Capital Stock of any Restricted Subsidiary of the Company or (b)
any other property or assets of the Company or any Restricted Subsidiary of the
Company other than in the ordinary course of business; provided, however, that Asset Sales or
other dispositions shall not include (i) a transaction or series of related
transactions for which the Company or its Restricted Subsidiaries receive
aggregate consideration of less than $1.0 million, (ii) the sale, lease,
conveyance, disposition or other transfer of all or substantially all of the
assets of the Company as permitted by Section 5.01 hereof or any
disposition that constitutes a Change of Control, (iii) the sale or discount,
in each case without recourse, of accounts receivable arising in the ordinary
course of business, but only in connection with the compromise or collection
thereof, (iv) disposals or replacements of obsolete equipment in the ordinary
course of business, (v) the sale, lease, conveyance, disposition or other
transfer by the Company or any Restricted Subsidiary of assets or property to
one or more Restricted Subsidiaries in connection with Investments permitted by
Section 4.07 hereof or pursuant to any Permitted Investment, (vi) sales of
accounts receivable, equipment and related assets (including, without
limitation, contract rights) of the type specified in the definition of
“Qualified Securitization Transaction” to a Securitization Entity for the fair
market value thereof, including cash in an amount at least equal to 75% of the
fair market value thereof as determined in accordance with GAAP (for the
purposes of this clause (vi), Purchase Money Notes shall be deemed to be cash),
(vii) dispositions of cash or Cash Equivalents; and (viii) the creation of a Lien
(but not the sale or other disposition of the property subject to such Lien).

 

“Bank Indebtedness” means all Obligations pursuant to the
Credit Agreement.

 

“Bankruptcy Law” means Title 11, U.S. Code or any similar
federal or state law for the relief of debtors.

 

9

 

“Board of Directors” means, as to any Person, the board of
directors of such Person or any duly authorized committee thereof.

 

“Board Resolution” means, with respect to any Person, a copy
of a resolution certified by the Secretary or an Assistant Secretary of such
Person to have been duly adopted by the Board of Directors of such Person and
to be in full force and effect on the date of such certification, and delivered
to the Trustee.

 

“Business Day” means any day other than a Legal Holiday.

 

“Capital Stock” means (i) with respect to any Person that is
a corporation, any and all shares, interests, participations or other
equivalents (however designated and whether or not voting) of corporate stock, including
each class of Common Stock and Preferred Stock, of such Person and (ii) with
respect to any Person that is not a corporation, any and all partnership or
other equity interests of such Person.

 

“Capitalized Lease Obligations” means, as to any Person, the
obligations of such Person under a lease that are required to be classified and
accounted for as capital lease obligations under GAAP and, for purposes of this
definition, the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.

 

“Cash Equivalents” means: (i) marketable direct obligations
issued by, or unconditionally guaranteed by, the United States Government or
issued by any agency thereof and backed by the full faith and credit of the
United States of America, in each case maturing within one year from the date
of acquisition thereof; (ii) marketable direct obligations issued by any State
of the United States of America or any political subdivision of any such State
or any public instrumentality thereof maturing within one year from the date of
acquisition thereof and, at the time of acquisition, having one of the three
highest ratings obtainable from either S&P or Moody’s; (iii) commercial
paper maturing no more than one year from the date of creation thereof and, at
the time of acquisition, having a rating of at least A-1 from S&P or at
least P-1 from Moody’s; (iv) certificates of deposit or bankers’ acceptances
maturing within one year from the date of acquisition thereof issued by any
bank organized under the laws of the United States of America or any state
thereof or the District of Columbia or any U.S. branch of a foreign bank or by
a bank organized under the laws of any foreign country recognized by the United
States of America, in each case having at the date of acquisition thereof
combined capital and surplus of not less than $250.0 million (or the foreign
currency equivalent thereof); (v) repurchase obligations with a term of not
more than seven days for underlying securities of the types described in clause
(i) above entered into with any bank meeting the qualifications specified in
clause (iv) above; and (vi) investments in money market funds which invest
substantially all their assets in securities of the types described in clauses
(i) through (v) above.

 

“Change of Control” means the occurrence of one or more of
the following events: (i) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all of
the assets of the Company or Parent to any Person or group of related Persons
for purposes of Section 13(d) of the Exchange Act (a “Group”), other than to the Company (in the
case of the assets of

 

10

 

Parent), the Permitted Holders or their
Related Parties or any Permitted Group; (ii) the approval by the holders of
Capital Stock of the Company, of any plan or proposal for the liquidation or
dissolution of the Company (whether or not otherwise in compliance with the
provisions of this Indenture); (iii) any Person or Group (other than the
Permitted Holders or their Related Parties or any Permitted Group) shall become
the beneficial owner, directly or indirectly, of shares representing more than
40% of the total ordinary voting power represented by the issued and
outstanding Capital Stock of the Company, Parent or TD Holding at a time when
the Permitted Holders and their Related Parties in the aggregate own a lesser
percentage of the total ordinary voting power represented by such issued and
outstanding Capital Stock; or (iv) the first day on which a majority of the
members of the Board of Directors of the Company or Parent are not Continuing
Directors.

 

“Common Stock” of any Person means any and all shares,
interests or other participations in, and other equivalents (however designated
and whether voting or non-voting) of such Person’s common stock, whether
outstanding on the Issue Date or issued after the Issue Date, and includes,
without limitation, all series and classes of such common stock.

 

“Company” means the
party named as such in this Indenture until a successor replaces it and,
thereafter, means the successor and, for purposes of any provision contained
herein and required by the TIA, each other obligor on the indenture securities.

 

“Consolidated EBITDA” means, with respect to any Person, for
any period, the sum (without duplication) of such Person’s (i) Consolidated Net
Income; and (ii) to the extent Consolidated Net Income has been reduced
thereby:  (A) all income taxes and
foreign withholding taxes of such Person and its Restricted Subsidiaries paid
or accrued in accordance with GAAP for such period; (B) Consolidated Interest
Expense; (C) Consolidated Non-cash Charges less any non-cash items increasing
Consolidated Net Income for such period (other than normal accruals in the
ordinary course of business), all as determined on a consolidated basis for
such Person and its Restricted Subsidiaries in accordance with GAAP; (D) any
cash charges resulting from the Transactions that are incurred prior to the six
month anniversary of the Issue Date; and (E) restructuring costs and
acquisition integration costs and fees, including, without limitation, cash
severance payments made in connection with acquisitions.

 

“Consolidated Fixed Charge Coverage Ratio” means, with
respect to any Person, the ratio of Consolidated EBITDA of such Person during
the four full fiscal quarters (the “Four-Quarter
Period”) ending prior to the date of the transaction giving rise to
the need to calculate the Consolidated Fixed Charge Coverage Ratio for which
internal financial statements are available (the “Transaction Date”) to Consolidated Fixed Charges of such
Person for the Four-Quarter Period. In addition to and without limitation of
the foregoing, for purposes of this definition, “Consolidated EBITDA” and
“Consolidated Fixed Charges” shall be calculated after giving effect on a pro
forma basis for the period of such calculation to (i) the incurrence or
repayment of any Indebtedness or the issuance of any Designated Preferred Stock
of such Person or any of its Restricted Subsidiaries (and the application of
the proceeds thereof) giving rise to the need to make such calculation and any
incurrence or repayment of other Indebtedness or the issuance

 

11

 

or redemption of other Preferred Stock (and
the application of the proceeds thereof), other than the incurrence or
repayment of Indebtedness in the ordinary course of business for working
capital purposes pursuant to revolving credit facilities, occurring during the
Four-Quarter Period or at any time subsequent to the last day of the
Four-Quarter Period and on or prior to the Transaction Date, as if such
incurrence or repayment or issuance or redemption, as the case may be (and the
application of the proceeds thereof), had occurred on the first day of the
Four-Quarter Period; and (ii) any Asset Sales or other dispositions or Asset
Acquisitions (including, without limitation, any Asset Acquisition giving rise
to the need to make such calculation as a result of such Person or one of its
Restricted Subsidiaries (including any Person who becomes a Restricted
Subsidiary as a result of the Asset Acquisition) incurring, assuming or otherwise
being liable for Acquired Indebtedness and also including any Consolidated
EBITDA attributable to the assets which are the subject of the Asset
Acquisition or Asset Sale or other disposition and without regard to clause
(iv) of the definition of Consolidated Net Income) occurring during the
Four-Quarter Period or at any time subsequent to the last day of the Four
Quarter Period and on or prior to the Transaction Date, as if such Asset Sale
or other disposition or Asset Acquisition (including the incurrence or
assumption of any such Acquired Indebtedness) occurred on the first day of the
Four-Quarter Period.  If such Person or
any of its Restricted Subsidiaries directly or indirectly guarantees
Indebtedness of a third Person, the preceding sentence shall give effect to the
incurrence of such guaranteed Indebtedness as if such Person or any Restricted
Subsidiary of such Person had directly incurred or otherwise assumed such other
Indebtedness that was so guaranteed.

 

Furthermore, in calculating
“Consolidated Fixed Charges” for purposes of determining the denominator (but
not the numerator) of this “Consolidated Fixed Charge Coverage Ratio”:  (i) interest on outstanding Indebtedness
determined on a fluctuating basis as of the Transaction Date and which will continue
to be so determined thereafter shall be deemed to have accrued at a fixed rate
per annum equal to the rate of interest on such Indebtedness in effect on the
Transaction Date; and (ii) notwithstanding clause (i) of this paragraph,
interest on Indebtedness determined on a fluctuating basis, to the extent such
interest is covered by agreements relating to Interest Swap Obligations, shall
be deemed to accrue at the rate per annum resulting after giving effect to the
operation of such agreements.

 

For purposes of this
definition, whenever pro forma effect is to be given to an acquisition of
assets, the amount of income or earnings relating thereto and the amount of
Consolidated Interest Expense associated with any Indebtedness incurred in
connection therewith, the pro forma calculations shall be determined in good
faith by a responsible financial or accounting officer of the Company.  In addition, any such pro forma calculation
may include adjustments appropriate, in the reasonable determination of the
Company as set forth in an Officers’ Certificate, to reflect operating expense
reductions reasonably expected to result from any acquisition or merger.

 

“Consolidated Fixed Charges” means, with respect to any
Person for any period, the sum of, without duplication:  (i) Consolidated Interest Expense; plus (ii)
the product of (x) the amount of all cash dividend payments on any series of
Preferred Stock of such Person times (y) a fraction, the numerator of which is
one and the denominator of which is one minus the then current effective
consolidated Federal, state and local income

 

12

 

tax rate of such Person, expressed as a
decimal (as estimated in good faith by the chief financial officer of the
Company, which estimate shall be conclusive); plus (iii) the product of (x) the
amount of all dividend payments on any series of Permitted Subsidiary Preferred
Stock times (y) a fraction, the numerator of which is one and the denominator
of which is one minus the then current effective consolidated Federal, state
and local income tax rate of such Person, expressed as a decimal (as estimated
in good faith by the chief financial officer of the Company, which estimate
shall be conclusive); provided
that with respect to any series of Preferred Stock that did not pay cash
dividends during such period but that is eligible to pay cash dividends during
any period prior to the maturity date of the Notes, cash dividends shall be
deemed to have been paid with respect to such series of Preferred Stock during
such period for purposes of this clause (iii).

 

“Consolidated Interest Expense” means, with respect to any
Person for any period, the sum of, without duplication, (i) the aggregate of
all cash and non-cash interest expense with respect to all outstanding
Indebtedness of such Person and its Restricted Subsidiaries, including the net
costs associated with Interest Swap Obligations, for such period determined on
a consolidated basis in conformity with GAAP, but excluding amortization or write-off
of debt issuance costs, (ii) the consolidated interest expense of such Person
and its Restricted Subsidiaries that was capitalized during such period; and
(iii) the interest component of Capitalized Lease Obligations paid, accrued
and/or scheduled to be paid or accrued by such Person and its Restricted
Subsidiaries during such period as determined on a consolidated basis in
accordance with GAAP.

 

“Consolidated Leverage Ratio”with respect to any Person as of any date of determination means,
the ratio of (x) consolidated Indebtedness of such Person as of the end of the
most recent fiscal quarter for which internal financial statements are
available to (y) the aggregate amount of Consolidated EBITDA of such Person for
the period of the most recent four consecutive quarters for which internal
financial statements are available, in each case with such pro forma adjustments to consolidated
Indebtedness and Consolidated EBITDA as are appropriate and consistent with the
pro forma provisions set forth in
the definition of Consolidated Fixed Charge Coverage Ratio.

 

“Consolidated Net Income” means, for any period, the
aggregate net income (or loss) of the Company and its Restricted Subsidiaries
for such period on a consolidated basis, determined in accordance with GAAP and
without any deduction in respect of Preferred Stock dividends; provided that there shall be excluded
therefrom to the extent otherwise included, without duplication:  (i) gains and losses from Asset Sales
(without regard to the $1.0 million limitation set forth in the definition
thereof) and the related tax effects according to GAAP; (ii) gains and losses
due solely to fluctuations in currency values and the related tax effects
according to GAAP; (iii) all extraordinary, unusual or non-recurring charges,
gains and losses (including, without limitation, all restructuring costs,
acquisition integration costs and fees, including cash severance payments made
in connection with acquisitions, and any expense or charge related to the
repurchase of Capital Stock or warrants or options to purchase Capital Stock),
and the related tax effects according to GAAP; (iv) the net income (or loss) of
any Person acquired in a pooling of interests transaction accrued prior to the
date it becomes a Restricted Subsidiary of the Company or is merged or
consolidated with or into the Company or any Restricted Subsidiary of the
Company; (v) the net income (but not loss) of any Restricted Subsidiary of the
Company to the extent that the declaration of

 

13

 

dividends or similar distributions by that
Restricted Subsidiary of the Company of that income is prohibited by contract,
operation of law or otherwise; (vi) the net loss of any Person, other than a
Restricted Subsidiary of the Company; (vii) the net income of any Person, other
than a Restricted Subsidiary of the Company, except to the extent of cash
dividends or distributions paid to the Company or a Restricted Subsidiary of
the Company by such Person; (viii) in the case of a successor to the referent
Person by consolidation or merger or as a transferee of the referent Person’s
assets, any earnings of the successor corporation prior to such consolidation,
merger or transfer of assets; (ix) any non-cash compensation charges and
deferred compensation charges, including any arising from existing stock
options resulting from any merger or recapitalization transaction, including
the Transactions; provided, however,
that Consolidated Net Income for any period shall be reduced by any cash
payments made during such period by such Person in connection with any such
deferred compensation, whether or not such reduction is in accordance with
GAAP; and (x) inventory purchase accounting 
adjustments and amortization and impairment charges resulting from other
purchase accounting adjustments with respect to the Transactions and other
acquisition transactions. For purposes of clause (iii)(v) of the first
paragraph of Section 4.07 hereof, Consolidated Net Income shall be reduced
by any cash dividends paid with respect to any series of Designated Preferred
Stock.

 

“Consolidated Non-cash Charges” means, with respect to any
Person, for any period, the aggregate depreciation, amortization and other
non-cash charges, impairment and expenses of such Person and its Restricted
Subsidiaries reducing Consolidated Net Income of such Person and its Restricted
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP (excluding any such charges that require an accrual of or a reserve
for cash payments for any future period other than accruals or reserves
associated with mandatory repurchases of equity securities). For clarification
purposes, purchase accounting adjustments with respect to inventory will be
included in Consolidated Non-cash Charges.

 

“Continuing Directors” means, as of any date of
determination, any member of the Board of Directors of the Company or Parent
who (i) was a member of such Board of Directors on the Issue Date; or (ii) was
nominated for election or elected to such Board of Directors by any of the
Permitted Holders or with the approval of a majority of the Continuing
Directors who were members of such Board at the time of such nomination or
election.

 

“Corporate Trust Office of the Trustee” shall be at the address
of the Trustee specified in Section 12.02 hereof or such other address as
to which the Trustee may give notice to the Company.

 

“Credit Agreement” means the Credit Agreement dated as of the
Issue Date among the Company, Parent, the lenders party thereto in their
capacities as lenders thereunder, Credit Suisse First Boston, as joint
bookrunner, joint lead arranger, administrative agent and collateral agent,
Bank of America Securities LLC, as joint bookrunner and joint lead arranger,
Bank of America, N.A., as syndication agent and UBS AG, Cayman Islands branch
and General Electric Capital Corporation, as documentation agents, together
with the related documents thereto (including, without limitation, any
guarantee agreements and security documents), in each case as such

 

14

 

agreements may be amended (including any
amendment and restatement thereof), supplemented or otherwise modified from
time to time, including any agreement extending the maturity of, refinancing,
replacing or otherwise restructuring (including increasing the amount of
available borrowings thereunder or adding Restricted Subsidiaries of the
Company as additional borrowers or guarantors thereunder) all or any portion of
the Indebtedness under such agreement or any successor or replacement agreement
and whether by the same or any other agent, lender or group of lenders.

 

“Credit Facilities” means one or more debt facilities
(including, without limitation, the Credit Agreement) or commercial paper
facilities with banks or other institutional lenders providing for revolving
credit loans, term loans, receivables financing (including through the sale of
receivables to such lenders or to special purpose entities formed to borrow
from such lenders against such receivables) and/or letters of credit or
banker’s acceptances.

 

“Currency Agreement” means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to
protect the Company or any Restricted Subsidiary of the Company against
fluctuations in currency values.

 

“Default” means an event or condition the occurrence of which
is, or with the lapse of time or the giving of notice or both would be, an
Event of Default.

 

“Designated Noncash Consideration” means any noncash
consideration received by the Company or one of its Restricted Subsidiaries in
connection with an Asset Sale that is designated as Designated Noncash
Consideration pursuant to an Officers’ Certificate executed by the principal
executive officer and the principal financial officer of the Company or such
Restricted Subsidiary at the time of such Asset Sale.  Any particular item of Designated Noncash Consideration will
cease to be considered to be outstanding once it has been sold for cash or Cash
Equivalents. At the time of receipt of any Designated Noncash Consideration,
the Company shall deliver an Officers’ Certificate to the Trustee which shall
state the fair market value of such Designated Noncash Consideration and shall
state the basis of such valuation, which shall be a report of a nationally
recognized investment banking, appraisal or accounting firm with respect to the
receipt in one or a series of related transactions of Designated Noncash
Consideration with a fair market value in excess of $10.0 million.

 

“Designated Preferred Stock” means Preferred Stock that is so
designated as Designated Preferred Stock, pursuant to an Officers’ Certificate
executed by the principal executive officer and the principal financial officer
of the Company, on the issuance date thereof, the cash proceeds of which are
excluded from the calculation set forth in clause (iii)(w) of the first
paragraph of Section 4.07 hereof.

 

“Designated Senior Debt” means (i) the Bank Indebtedness and
(ii) any other Indebtedness constituting Senior Debt which, at the time of
determination, has an aggregate principal amount of at least $25.0 million and
is specifically designated in the instrument evidencing such Senior Debt as
“Designated Senior Debt” by the Company.

 

“Disqualified Capital Stock” means with respect to any
Person, any Capital Stock which by its terms (or by the terms of any security
into which it is

 

15

 

convertible or for which it is exchangeable
at the option of the holder) or upon the happening of any event, (i) matures or
is mandatorily redeemable, (other than redeemable only for Capital Stock of
such Person which is not itself Disqualified Stock) pursuant to a sinking fund
obligation or otherwise, (ii) is convertible or exchangeable at the option of
the holder for Indebtedness or Disqualified Capital Stock, or (iii) is
mandatorily redeemable or must be purchased upon the occurrence of certain
events or otherwise, in whole or in part; in each case on or prior to the final
maturity date of the Notes; provided,
however, that any Capital Stock that would not constitute
Disqualified Capital Stock but for provisions thereof giving holders thereof
the right to require such Person to purchase or redeem such Capital Stock upon
the occurrence of an “asset sale” or “change of control” occurring prior to the
final maturity date of the Notes shall not constitute Disqualified Capital
Stock if:  (A) the “asset sale” or
“change of control” provisions applicable to such Capital Stock are not more
favorable to the holders of such Capital Stock than the terms applicable to the
Notes and described in Sections 4.10 and 4.15 hereof, respectively; and (B) any
such requirement only becomes operative after compliance with such terms applicable
to the Notes, including the purchase of any Notes tendered pursuant thereto.
The amount of any Disqualified Capital Stock that does not have a fixed
redemption, repayment or repurchase price will be calculated in accordance with
the terms of such Disqualified Capital Stock as if such Disqualified Capital
Stock were redeemed, repaid or repurchased on any date on which the amount of
such Disqualified Stock is to be determined pursuant to the Indenture; provided, however, that if such
Disqualified Capital Stock could not be required to be redeemed, repaid or
repurchased at the time of such determination, the redemption, repayment or
repurchase price will be the book value of such Disqualified Capital Stock as
reflected in the most recent internal financial statements of such Person.

 

“Domestic Restricted Subsidiary” means any direct or indirect
Restricted Subsidiary of the Company that is incorporated under the laws of the
United States of America, any State thereof or the District of Columbia.

 

“Equity Offering” means any offering of Qualified Capital
Stock of Parent or the Company; provided
that (i) in the event of an offering by Parent, Parent contributes to the
capital of the Company the portion of the net cash proceeds of such offering
necessary to pay the aggregate redemption price (plus accrued interest to the
redemption date) of the Notes to be redeemed pursuant to Section 3.07(b)
hereof; and (ii) in the event such equity offering is not in the form of a
public offering registered under the Securities Act, the proceeds received by
the Company directly or indirectly from such offering are not less than $10.0
million.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, or any successor statute or statutes thereto.

 

“Exchange Notes” has the meaning set forth in the Appendix
hereto.

 

“fair market value” means, with respect to any asset or
property, the price which could be negotiated in an arm’s-length, free market
transaction, for cash, between a willing seller and a willing and able buyer,
neither of whom is under undue pressure or compulsion to complete the
transaction. Fair market value shall be determined by the Board of Directors of
the Company acting reasonably and in good faith and shall be

 

16

 

evidenced by a Board Resolution of the Board
of Directors of the Company delivered to the Trustee.

 

“Foreign Restricted Subsidiary” means any Restricted Subsidiary of the
Company that is not a Domestic Restricted Subsidiary.

 

“Four-Quarter Period” has the meaning specified in the
definition of Consolidated Fixed Charge Coverage Ratio.

 

“GAAP” means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States of America, as in effect as of
the Issue Date.

 

“Government Securities” means direct obligations of, or obligations
guaranteed by, the United States of America, and for the payment of which the
United States pledges its full faith and credit.

 

“Group” has the meaning specified in the definition of Change
of Control.

 

“Guarantee” means (i) the guarantee of the Notes by Parent
and the Domestic Restricted Subsidiaries of the Company in accordance with the
terms of this Indenture; and (ii) the guarantee of the Notes by any Restricted
Subsidiary required under the terms of Section 4.17 hereof.

 

“Guarantor” means Parent and any Restricted Subsidiary that
incurs a Guarantee; provided that
upon the release and discharge of Parent or such Restricted Subsidiary, as the
case may be, from its Guarantee in accordance with Section 11.07 hereof,
Parent or such Restricted Subsidiary, as the case may be, shall cease to be a
Guarantor.

 

“Hedging Agreement” means any agreement with respect to the
hedging of price risk associated with the purchase of commodities used in the
business of the Company and its Restricted Subsidiaries, so long as any such
agreement has been entered into in the ordinary course of business and not for
purposes of speculation.

 

“Holder” means a Person in whose name a Note is registered.

 

“Indebtedness” means with respect to any Person, without
duplication, (i) all Obligations of such Person for borrowed money, (ii) all
Obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments, (iii) all Capitalized Lease Obligations of such Person,
(iv) all Obligations of such Person issued or assumed as the deferred purchase
price of property, all conditional sale obligations and all Obligations under
any title retention agreement (but excluding trade accounts payable and other
accrued liabilities arising in the ordinary course of business), (v) all
Obligations for the reimbursement of any obligor on any letter of credit,
banker’s acceptance or similar credit transaction, (vi) guarantees and other
contingent obligations in respect of Indebtedness referred to in clauses (i)
through (v) above and clause (viii) below, (vii) all

 

17

 

Obligations of any other Person of the type
referred to in clauses (i) through (vi) which are secured by any Lien on any
property or asset of such Person, the amount of such Obligation being deemed to
be the lesser of the fair market value of such property or asset and the amount
of the Obligation so secured, (viii) all Obligations under Currency Agreements
and interest swap agreements of such Person, and (ix) all Disqualified Capital
Stock issued by such Person with the amount of Indebtedness represented by such
Disqualified Capital Stock being equal to the greater of its voluntary or
involuntary liquidation preference and its maximum fixed repurchase price, but
excluding accrued dividends, if any.

 

Notwithstanding the
foregoing, in connection with the purchase by the Company or any Restricted
Subsidiary of any business, the term “Indebtedness” will exclude post-closing
payment adjustments to which the seller may become entitled to the extent such
payment is determined by a final closing balance sheet or such payment depends
on the performance of such business after the closing; provided, however, that, at the time of
closing, the amount of any such payment is not determinable and, to the extent
such payment thereafter becomes fixed and determined, the amount is paid within
60 days thereafter.  For clarification
purposes, the liability of the Company or any Restricted Subsidiary to make
periodic payments to licensors in consideration for the license of patents and
technical information under license agreements in existence on the Issue Date
and any amount payable in respect of a settlement of disputes with respect to
such payments thereunder shall not constitute Indebtedness.

 

For purposes hereof, the
“maximum fixed repurchase price” of any Disqualified Capital Stock which does
not have a fixed repurchase price shall be calculated in accordance with the
terms of such Disqualified Capital Stock as if such Disqualified Capital Stock
were purchased on any date on which Indebtedness shall be required to be
determined pursuant to the Indenture, and if such price is based upon, or measured
by, the fair market value of such Disqualified Capital Stock, such fair market
value shall be determined reasonably and in good faith by the Board of
Directors of the issuer of such Disqualified Capital Stock. For the purposes of
calculating the amount of Indebtedness of a Securitization Entity outstanding
as of any date, the face or notional amount of any interest in receivables or
equipment that is outstanding as of such date shall be deemed to be
Indebtedness but any such interests held by Affiliates of such Securitization
Entity shall be excluded for purposes of such calculation.

 

“Indenture” means this Indenture, as amended or supplemented
from time to time.

 

“Initial Notes” has the meaning set forth in the Appendix
hereto.

 

“Interest Swap Obligations” means the obligations of any
Person pursuant to any arrangement with any other Person, whereby, directly or
indirectly, such Person is entitled to receive from time to time periodic
payments calculated by applying either a floating or a fixed rate of interest
on a stated notional amount in exchange for periodic payments made by such
other Person calculated by applying a fixed or a floating rate of interest on
the same notional amount and shall include, without limitation, interest rate
swaps, caps, floors, collars and similar agreements.

 

18

 

“Investment” means, with respect to any Person, any direct or
indirect loan or other extension of credit (including, without limitation, a
guarantee) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the
account or use of others), or any purchase or acquisition by such Person of any
Capital Stock, bonds, notes, debentures or other securities or evidences of
Indebtedness issued by, any Person. “Investment” shall exclude extensions of
trade credit by the Company and its Restricted Subsidiaries in accordance with
normal trade practices of the Company or such Restricted Subsidiary, as the
case may be. If the Company or any Restricted Subsidiary of the Company sells
or otherwise disposes of any Common Stock of any direct or indirect Restricted
Subsidiary of the Company such that, after giving effect to any such sale or
disposition, such Restricted Subsidiary is no longer a Restricted Subsidiary of
the Company (or, in the case of a Restricted Subsidiary that is not a Wholly
Owned Restricted Subsidiary of the Company, such Restricted Subsidiary has a
minority interest that is held by an Affiliate of the Company that is not a
Restricted Subsidiary of the Company), the Company shall be deemed to have made
an Investment on the date of any such sale or disposition equal to the fair
market value of the Common Stock of such Restricted Subsidiary not sold or
disposed of. Except as otherwise provided herein, the amount of an Investment
shall be its fair market value at the time the Investment is made and without
giving effect to subsequent changes in its fair market value.

 

“Issue Date” means the date hereof.

 

“Legal Holiday” means a Saturday, a Sunday or a day on which
banking institutions in the City of New York, the city in which the principal
corporate trust office of the Trustee is located or at a place of payment are
authorized by law, regulation or executive order to remain closed. If a payment
date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue on such payment for the intervening period.

 

“Lien” means any lien, mortgage, deed of trust, pledge,
security interest, charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof and
any agreement to give any security interest).

 

“Marketable Securities” means publicly traded debt or equity
securities that are listed for trading on a national securities exchange and
that were issued by a corporation whose debt securities are rated in one of the
three highest rating categories by either S&P or Moody’s.

 

“Merger Agreement” means the agreement and plan of merger
dated as of June 6, 2003, between TD Acquisition and TransDigm Holdings
Company, as such agreement may be further amended so long as such amendments
are not adverse to the Holders of the Notes.

 

“Moody’s” means Moody’s Investors Service, Inc. or any
successor thereto

 

“Net Cash Proceeds” means, with respect to any Asset Sale,
the proceeds in the form of cash or Cash Equivalents including payments in
respect of deferred

 

19

 

payment obligations when received in the form
of cash or Cash Equivalents (other than the portion of any such deferred
payment constituting interest) received by the Company or any of its Restricted
Subsidiaries from such Asset Sale net of: 
(i) reasonable out-of-pocket expenses and fees relating to such Asset
Sale (including, without limitation, legal, accounting and investment banking
fees and sales commissions and title and recording tax expenses); (ii) all
Federal, state, provincial, foreign and local taxes required to be accrued as a
liability under GAAP, as a consequence of such Asset Sale; (iii) appropriate
amounts to be provided by the Company or any Restricted Subsidiary, as the case
may be, as a reserve, in accordance with GAAP, against any liabilities
associated with such Asset Sale and retained by the Company or any Restricted
Subsidiary, as the case may be, after such Asset Sale, including, without
limitation, pension and other post-employment benefit liabilities, liabilities
related to environmental matters and liabilities under any indemnification
obligations associated with such Asset Sale (iv) all distributions and other
payments required to be made to minority interest holders in Restricted
Subsidiaries as a result of such Asset Sale; and (v) all payments made on any
Indebtedness which is secured by any assets subject to such Asset Sale, in
accordance with the terms of any Lien upon or other security agreement of any
kind with respect to such assets, or which must by its terms, or in order to
obtain a necessary consent to such Asset Sale, or by applicable law, be repaid
out of the proceeds from such Asset Sale.

 

“Notes” means, collectively, the Initial Notes, the Exchange
Notes and the Private Exchange Notes, treated as a single class of securities,
as amended or supplemented from time to time in accordance with the terms
hereof, that are issued pursuant to this Indenture.

 

“Obligations” means all obligations for principal, premium,
interest, penalties, fees, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness.

 

“Officer” means, with respect to any Person (other than the
Trustee), the Chairman of the Board, the Chief Executive Officer, the
President, the Chief Operating Officer, the Chief Financial Officer, the
Treasurer, any Assistant Treasurer, the Controller, the Secretary or any
Vice-President of such Person.

 

“Officers’ Certificate” means a certificate signed on behalf
of the Company by two Officers of the Company, one of whom must be the
principal executive officer, the principal financial officer, the treasurer or
the principal accounting officer of the Company, that meets the requirements of
Sections 13.04 and 13.05 hereof.

 

“Opinion of Counsel” means an opinion from legal counsel who
is reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company or any Subsidiary of the Company.

 

“Permitted Acquisition Payments” means, without duplication, the following
payments and distributions: (i) payments on the Issue Date to holders of
Parent’s common stock, holders of Parent’s preferred stock, holders of
in-the-money stock options to acquire Parents’ common stock and the holder of
the warrant to acquire Parents’ common stock pursuant to the Merger Agreement,
(ii) payments required to defease the 103/8% Notes in
accordance with the terms of the indenture governing those

 

20

 

notes and (iii) the payment of transaction
fees and expenses relating to the Transactions not in excess of $30.0 million
in the aggregate.

 

“Permitted Business” means any business (including stock or
assets) that derives a majority of its revenues from the business engaged in by
the Company and its Restricted Subsidiaries on the Issue Date and/or activities
that are reasonably similar, ancillary or related to, or a reasonable
extension, development or expansion of, the businesses in which the Company and
its Restricted Subsidiaries are engaged on the Issue Date.

 

“Permitted Group” means any group of investors that is deemed
to be a “person” (as such term is used in Section 13(d)(3) of the Exchange
Act) by virtue of the Stockholders’ Agreements, as the same may be amended,
modified or supplemented from time to time, provided
that no single Person (together with its Affiliates), other than the Permitted
Holders and their Related Parties, is the “beneficial owner” (as such term is
used in Section 13(d) of the Exchange Act), directly or indirectly, of
more than 50% of the voting power of the issued and outstanding Capital Stock
of the Company, Parent or TD Holding (as applicable) that is “beneficially
owned” (as defined above) by such group of investors.

 

“Permitted Holders” means Warburg Pincus Private Equity VIII,
L.P., its Affiliates and any general or limited partners of Warburg Pincus
Private Equity VIII, L.P. and any other shareholder of TD Holding on the Issue
Date.

 

“Permitted Indebtedness” means, without duplication, each of
the following:

 

(i)  Indebtedness under the Notes (other than any
Additional Notes);

 

(ii)  Indebtedness of the Company or any of its
Restricted Subsidiaries incurred pursuant to one or more Credit Facilities in
an aggregate principal amount at any time outstanding not to exceed $455.0
million, less:  (A) the aggregate amount
of Indebtedness of Securitization Entities at the time outstanding, (B) the
amount of all mandatory principal payments actually made by the Company or any
such Restricted Subsidiary since the Issue Date with the Net Cash Proceeds of
an Asset Sale in respect of term loans under a Credit Facility (excluding any
such payments to the extent refinanced at the time of payment), and (C) further
reduced by any repayments of revolving credit borrowings under a Credit
Facility with the Net Cash Proceeds of an Asset Sale that are accompanied by a
corresponding commitment reduction thereunder; provided
that the amount of Indebtedness permitted to be incurred pursuant to the Credit
Facilities in accordance with this clause (ii) shall be in addition to any
Indebtedness permitted to be incurred pursuant to the Credit Facilities in
reliance on, and in accordance with, clauses (vii), (xiii), (xiv) and (xv)
below;

 

(iii)  other Indebtedness of the Company and its
Restricted Subsidiaries outstanding on the Issue Date reduced by the amount of
any scheduled amortization payments or mandatory prepayments when actually paid
or permanent reductions therein;

 

21

 

(iv)  Interest Swap Obligations of the Company or
any of its Restricted Subsidiaries covering Indebtedness of the Company or any
of its Restricted Subsidiaries; provided
that any Indebtedness to which any such Interest Swap Obligations correspond is
otherwise permitted to be incurred under this Indenture; provided, further, that such Interest Swap
Obligations are entered into, in the judgment of the Company, to protect the
Company or any of its Restricted Subsidiaries from fluctuation in interest
rates on its outstanding Indebtedness;

 

(v)  Indebtedness of the Company or any
Restricted Subsidiary under Hedging Agreements and Currency Agreements;

 

(vi)  the incurrence by the Company or any of its
Restricted Subsidiaries of intercompany Indebtedness between or among the
Company and any such Restricted Subsidiaries; provided,
however, that: (a) if the Company is the obligor on such
Indebtedness and the payee is a Restricted Subsidiary that is not a Guarantor,
such Indebtedness is expressly subordinated to the prior payment in full in
cash of all Obligations with respect to the Notes and (b) (1) any subsequent
issuance or transfer of Capital Stock that results in any such Indebtedness
being held by a Person other than the Company or a Restricted Subsidiary
thereof and (2) any sale or other transfer of any such Indebtedness to a Person
that is not either the Company or a Restricted Subsidiary thereof (other than
by way of granting a Lien permitted under this Indenture or in connection with
the exercise of remedies by a secured creditor) shall be deemed, in each case,
to constitute an incurrence of such Indebtedness by the Company or such
Restricted Subsidiary, as the case may be, that was not permitted by this
clause (vi);

 

(vii)  Indebtedness (including Capitalized Lease
Obligations) incurred by the Company or any of its Restricted Subsidiaries to
finance the purchase, lease or improvement of property (real or personal) or
equipment (whether through the direct purchase of assets or the Capital Stock
of any person owning such assets) in an aggregate principal amount outstanding
not to exceed $10.0 million;

 

(viii)  Refinancing Indebtedness (other than
Refinancing Indebtedness with respect to Indebtedness incurred pursuant to
clause (ii) of this definition);

 

(ix)  guarantees by the Company and its Restricted
Subsidiaries of each other’s Indebtedness; provided
that such Indebtedness is permitted to be incurred under this Indenture; provided, further, that in the event such
Indebtedness (other than Acquired Indebtedness) is incurred pursuant to the
Consolidated Fixed Charge Coverage Ratio, such guarantees are by the Company or
a Guarantor only;

 

(x)  Indebtedness arising from agreements of the
Company or a Restricted Subsidiary of the Company providing for
indemnification, adjustment of purchase price, earn out or other similar
obligations, in each case, incurred or assumed in connection with the
disposition of any business, assets or a Restricted Subsidiary of the Company,
other than guarantees of Indebtedness incurred by any Person acquiring all or
any portion of such business, assets or Restricted Subsidiary for the purpose
of financing such acquisition; provided
that the maximum assumable liability in respect of all such Indebtedness shall
at no time exceed the gross

 

22

 

proceeds actually received
by the Company and its Restricted Subsidiaries in connection with such
disposition;

 

(xi)  obligations in respect of performance and
surety bonds and completion guarantees provided by the Company or any
Restricted Subsidiary of the Company in the ordinary course of business;

 

(xii)  the incurrence by a Securitization Entity of
Indebtedness in a Qualified Securitization Transaction that is non recourse to
the Company or any Subsidiary of the Company (except for Standard
Securitization Undertakings);

 

(xiii)  Indebtedness incurred by the Company or any
of the Guarantors in connection with the acquisition of a Permitted Business; provided that on the date of the
incurrence of such Indebtedness, after giving effect to the incurrence thereof
and the use of proceeds therefrom, the Consolidated Fixed Charge Coverage Ratio
of the Company would be greater than the Consolidated Fixed Charge Coverage
Ratio of the Company immediately prior to the incurrence of such Indebtedness;

 

(xiv)  additional Indebtedness of the Company and
the Guarantors in an aggregate principal amount which does not exceed $20.0
million at any one time outstanding (which amount may, but need not, be
incurred in whole or in part under a Credit Facility);

 

(xv)  additional Indebtedness of the Foreign
Restricted Subsidiaries in an aggregate principal amount which (when combined
with the liquidation value of all series of outstanding Permitted Subsidiary
Preferred Stock) does not exceed $15.0 million at any one time outstanding
(which amount may, but need not, be incurred in whole or in part under a Credit
Facility);

 

(xvi)  Indebtedness arising from the honoring by a
bank or other financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against
insufficient funds in the ordinary course of business; provided, however, that such Indebtedness
is extinguished within five business days of incurrence; and

 

(xvii)  Indebtedness of the Company or any of its
Restricted Subsidiaries represented by letters of credit for the account of the
Company or such Restricted Subsidiary, as the case may be, issued in the
ordinary course of business of the Company or such Restricted Subsidiary,
including, without limitation, in order to provide security for workers’
compensation claims or payment obligations in connection with self-insurance or
similar requirements in the ordinary course of business and other Indebtedness
with respect to workers’ compensation claims, self-insurance obligations,
performance, surety and similar bonds and completion guarantees provided by the
Company or any Restricted Subsidiary of the Company in the ordinary course of
business.

 

For purposes of determining
compliance with Section 4.09 hereof, in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted
Indebtedness described in clauses (i) through (xvii) above or is entitled to be

 

23

 

incurred pursuant to the Consolidated Fixed
Charge Coverage Ratio provisions of Section 4.09 hereof, the Company
shall, in its sole discretion, divide and classify (or later redivide and
reclassify) such item of Indebtedness in any manner that complies with
Section 4.09 hereof. Accrual of interest, accretion or amortization of
original issue discount, the payment of interest on any Indebtedness in the
form of additional Indebtedness with the same terms, and the payment of dividends
on Disqualified Capital Stock in the form of additional shares of the same
class of Disqualified Capital Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Capital Stock for purposes of
Section 4.09 hereof.

 

“Permitted Investments” means: (i) Investments by the Company
or any Restricted Subsidiary of the Company in any Restricted Subsidiary of the
Company (other than a Restricted Subsidiary of the Company in which an
Affiliate of the Company that is not a Restricted Subsidiary of the Company
holds a minority interest) (whether existing on the Issue Date or created
thereafter) or any other Person (including by means of any transfer of cash or
other property) if as a result of such Investment such other Person shall become
a Restricted Subsidiary of the Company (other than a Restricted Subsidiary of
the Company in which an Affiliate of the Company that is not a Restricted
Subsidiary of the Company holds a minority interest) or that will merge with or
consolidate into the Company or a Restricted Subsidiary of the Company and
Investments in the Company by the Company or any Restricted Subsidiary of the
Company; (ii) investments in cash and Cash Equivalents; (iii) loans and
advances (including payroll, travel and similar advances) to employees and
officers of the Company and its Restricted Subsidiaries for bona fide business
purposes (including to purchase Capital Stock of Parent or TD Holding) in an
aggregate principal amount not to exceed $5.0 million at any one time outstanding;
(iv) Currency Agreements, Hedging Agreements and Interest Swap Obligations
entered into in the ordinary course of business and otherwise in compliance
with this Indenture; (v) Investments in securities of trade creditors or
customers received pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of such trade creditors or
customers or in good faith settlement of delinquent obligations of such trade
creditors or customers; (vi) Investments made by the Company or its Restricted
Subsidiaries as a result of consideration received in connection with an Asset
Sale made in compliance with Section 4.10 hereof; (vii) Investments
existing on the Issue Date; (viii) accounts receivable created or acquired in
the ordinary course of business; (ix) guarantees by the Company or a Restricted
Subsidiary of the Company permitted to be incurred under this Indenture; (x)
additional Investments having an aggregate fair market value, when taken
together with all other Investments made pursuant to this clause (x) that are
at that time outstanding, not to exceed the greater of (A) $20.0 million and
(B) 4% of the Company’s Total Assets; (xi) any Investment by the Company or a
Subsidiary of the Company in a Securitization Entity or any Investment by a
Securitization Entity in any other Person in connection with a Qualified
Securitization Transaction; provided
that any Investment in a Securitization Entity is in the form of a Purchase
Money Note or an equity interest; (xii) Investments the payment for which
consists exclusively of Qualified Capital Stock of the Company; and (xiii) any
Investment in any Person to the extent it consists of prepaid expenses,
negotiable instruments held for collection and lease, utility and workers’
compensation, performance and other similar deposits made in the ordinary
course of business.

 

24

 

“Permitted Subsidiary Preferred Stock” means any series of
Preferred Stock of a Foreign Restricted Subsidiary that constitutes Qualified
Capital Stock, the liquidation value of all series of which, when combined with
the aggregate amount of outstanding Indebtedness of the Foreign Restricted
Subsidiaries incurred pursuant to clause (xv) of the definition of Permitted
Indebtedness, does not exceed $5.0 million.

 

“Person” means an individual, partnership, corporation,
limited liability company, unincorporated organization, trust or joint venture,
or a governmental agency or political subdivision thereof.

 

“Preferred Stock” of any Person means any Capital Stock of
such Person that has preferential rights to any other Capital Stock of such
Person with respect to dividends or redemptions or upon liquidation.

 

“Private Exchange Notes” has the meaning set forth in the Appendix
hereto.

 

“Productive Assets” means assets (including Capital Stock)
that are used or usable by the Company and its Restricted Subsidiaries in
Permitted Businesses.

 

“Purchase Money Note” means a promissory note of a
Securitization Entity evidencing a line of credit, which may be irrevocable,
from the Company or any Subsidiary of the Company in connection with a
Qualified Securitization Transaction to a Securitization Entity, which note
shall be repaid from cash available to the Securitization Entity, other than amounts
required to be established as reserves pursuant to agreements, amounts paid to
investors in respect of interest, and principal and amounts paid in connection
with the purchase of newly generated receivables or newly acquired equipment.

 

“Qualified Capital Stock” means any Capital Stock that is not
Disqualified Capital Stock.

 

“Qualified Securitization Transaction” means any transaction
or series of transactions that may be entered into by the Company or any of its
Restricted Subsidiaries pursuant to which the Company or any of its
Subsidiaries may sell, convey or otherwise transfer to (i) a Securitization
Entity (in the case of a transfer by the Company or any of its Restricted
Subsidiaries); and (ii) any other Person (in the case of a transfer by a Securitization
Entity), or may grant a security interest in any accounts receivable or
equipment (whether now existing or arising or acquired in the future) of the
Company or any of its Restricted Subsidiaries, and any assets related thereto
including, without limitation, all collateral securing such accounts receivable
and equipment, all contracts and contract rights and all guarantees or other
obligations in respect of such accounts receivable and equipment, proceeds of
such accounts receivable and equipment and other assets (including contract
rights) which are customarily transferred or in respect of which security
interests are customarily granted in connection with assets securitization
transactions involving accounts receivable and equipment.

 

“Refinance” means, in respect of any security or
Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem,
defease or retire, or to issue a

 

25

 

security or Indebtedness in exchange or
replacement for, such security or Indebtedness in whole or in part.
“Refinanced” and “Refinancing” shall have correlative meanings.

 

“Refinancing Indebtedness” means any Refinancing,
modification, replacement, restatement, refunding, deferral, extension,
substitution, supplement, reissuance or resale of existing or future
Indebtedness (other than intercompany Indebtedness), including any additional
Indebtedness incurred to pay interest or premiums required by the instruments
governing such existing or future Indebtedness as in effect at the time of
issuance thereof (“Required Premiums”)
and fees in connection therewith; provided
that any such event shall not (i) directly or indirectly result in an increase
in the aggregate principal amount of Permitted Indebtedness (except to the
extent such increase is a result of a simultaneous incurrence of additional
Indebtedness (A) to pay Required Premiums and related fees or (B) otherwise
permitted to be incurred under this Indenture); and (ii) create Indebtedness
with a Weighted Average Life to Maturity at the time such Indebtedness is
incurred that is less than the Weighted Average Life to Maturity at such time
of the Indebtedness being refinanced, modified, replaced, renewed, restated,
refunded, deferred, extended, substituted, supplemented, reissued or resold.

 

“Registration Rights Agreement” means the Registration Rights
Agreement, dated as of the Issue Date by and among the Company, the Guarantors
and Credit Suisse First Boston LLC, as representative of the initial
purchasers.

 

“Related Party” with respect to any Permitted Holder means
(i)(A) any spouse, sibling, parent or child of such Permitted Holder; or (B)
the estate of any Permitted Holder during any period in which such estate holds
Capital Stock of the Company for the benefit of any Person referred to in
clause (i)(A) or (ii) any trust, corporation, partnership, limited liability
company or other entity, the beneficiaries, stockholders, partners, owners or
Persons beneficially owning an interest of more than 50% of which consist of,
or the sole managing partner or managing member of which is, one or more
Permitted Holders and/or such other Persons referred to in the immediately
preceding clause (i).

 

“Representative” means the indenture trustee or other
trustee, agent or representative in respect of any Designated Senior Debt; provided that if, and for so long as, any
Designated Senior Debt lacks such a representative, then the Representative for
such Designated Senior Debt shall at all times constitute the holders of a majority
in outstanding principal amount of such Designated Senior Debt in respect of
any Designated Senior Debt.

 

“Required Premiums” has the meaning set forth in the definition of Refinancing
Indebtedness.

 

“Responsible Officer,” when used with respect to the Trustee,
means any officer within the Corporate Trust Administration of the Trustee (or
any successor group of the Trustee) located at the Corporate Trust Office of
the Trustee who has direct responsibility for the administration of this
Indenture and for the purposes of Sections 7.01(c)(ii) and 7.05(b) also means,
with respect to a particular corporate trust matter, any

 

26

 

other officer to whom such matter is referred
because of his knowledge of and familiarity with the particular subject.

 

“Restricted Subsidiary” of any Person means any Subsidiary of
such Person which at the time of determination is not an Unrestricted
Subsidiary.

 

“S&P” means Standard & Poor’s Ratings Group or any
successor thereto.

 

“Sale and Leaseback Transaction” means any direct or indirect
arrangement with any Person or to which any such Person is a party, providing
for the leasing to the Company or a Restricted Subsidiary of any property,
whether owned by the Company or any Restricted Subsidiary at the Issue Date or
later acquired, which has been or is to be sold or transferred by the Company
or such Restricted Subsidiary to such Person or to any other Person from whom
funds have been or are to be advanced by such Person on the security of such
Property.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Secured Debt” means any Indebtedness secured by a Lien.

 

“Securities Act” means the Securities Act of 1933, as
amended.

 

“Securitization Entity” means a Wholly Owned Subsidiary of
the Company (or another Person in which the Company or any Subsidiary of the
Company makes an Investment and to which the Company or any Subsidiary of the
Company transfers accounts receivable or equipment and related assets) which
engages in no activities other than in connection with the financing of
accounts receivable or equipment and which is designated by the Board of
Directors of the Company (as provided below) as a Securitization Entity (i) no
portion of the Indebtedness or any other Obligations (contingent or otherwise)
of which (A) is guaranteed by the Company or any Restricted Subsidiary of the
Company (excluding guarantees of Obligations (other than the principal of, and
interest on, Indebtedness) pursuant to Standard Securitization Undertakings);
(B) is recourse to or obligates the Company or any Restricted Subsidiary of the
Company in any way other than pursuant to Standard Securitization Undertakings;
or (C) subjects any property or asset of the Company or any Restricted
Subsidiary of the Company, directly or indirectly, contingently or otherwise,
to the satisfaction thereof, other than pursuant to Standard Securitization
Undertakings; (ii) with which neither the Company nor any Restricted Subsidiary
of the Company has any material contract, agreement, arrangement or
understanding other than on terms no less favorable to the Company or such
Restricted Subsidiary than those that might be obtained at the time from
Persons that are not Affiliates of the Company, other than fees payable in the
ordinary course of business in connection with servicing receivables of such
entity; and (iii) to which neither the Company nor any Restricted Subsidiary of
the Company has any obligations to maintain or preserve such entity’s financial
condition or cause such entity to achieve certain levels of operating results.

 

Any such designation by the
Board of Directors of the Company shall be evidenced to the Trustee by filing
with the Trustee a certified copy of the Board Resolution of the Company giving
effect to such designation and an Officers’ Certificate certifying that such
designation complied with the foregoing conditions.

 

27

 

“Senior Debt” means the principal of, premium, if any, and
interest (including any interest accruing subsequent to the filing of a
petition of bankruptcy at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable law) on any Indebtedness of the Company or any Guarantor, whether
outstanding on the Issue Date or thereafter created, incurred or assumed,
unless, in the case of any particular Indebtedness, the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly
provides that such Indebtedness shall be subordinate or pari passu in right of payment to the
Notes or the Guarantees, as the case may be. 
Without limiting the generality of the foregoing, “Senior Debt” shall
also include the principal of, premium, if any, interest (including any
interest accruing subsequent to the filing of a petition of bankruptcy at the
rate provided for in the documentation with respect thereto, whether or not
such interest is an allowed claim under applicable law) on, and all other
amounts owing in respect of:  (x) all
monetary obligations of every nature of the Company or any Guarantor under the
Credit Agreement, including, without limitation, obligations (including
guarantees thereof) to pay principal and interest, reimbursement obligations
under letters of credit, fees, expenses and indemnities, (y) all Interest Swap
Obligations (and guarantees thereof), and (z) all obligations (and guarantees
thereof) under Currency Agreements and Hedging Agreements, in each case whether
outstanding on the Issue Date or thereafter incurred.

 

Notwithstanding the
foregoing, “Senior Debt” shall not include (i) any Indebtedness of the Company
or a Guarantor to the Company or to a Subsidiary of the Company, (ii) any
Indebtedness of the Company or any Guarantor to, or guaranteed by the Company
or any Guarantor on behalf of, any shareholder, director, officer or employee
of the Company, Parent or any Subsidiary of the Company (including, without
limitation, amounts owed for compensation) other than a shareholder who is also
a lender (or an Affiliate of a lender) under the Credit Facilities (including
the Credit Agreement), (iii) any amounts payable or other liability to trade
creditors arising in the ordinary course of business (including guarantees
thereof or instruments evidencing such liabilities but excluding secured
purchase money obligations); (iv) Indebtedness represented by Disqualified
Capital Stock, (v) any liability for Federal, state, local or other taxes owed
or owing by the Company or any of the Guarantors, (vi) that portion of any
Indebtedness incurred in violation of Section 4.09 hereof (but, as to any
such obligation, no such violation shall be deemed to exist for purposes of
this clause (vi) if the holder(s) of such obligation or their representative
and the Trustee shall have received an Officers’ Certificate of the Company to
the effect that the incurrence of such Indebtedness does not (or in the case of
revolving credit indebtedness, that the incurrence of the entire committed
amount thereof at the date on which the initial borrowing thereunder is made
would not) violate such provisions of this Indenture), (vii) Indebtedness
which, when incurred and without respect to any election under
Section 1111(b) of Title 11, United States Code, is without recourse to
the Company or any of the Guarantors, as applicable, and (viii) any
Indebtedness which is, by its express terms, subordinated in right of payment
to any other Indebtedness of the Company or any of the Guarantors.

 

“Senior Subordinated Debt” means with respect to a Person,
the Notes (in the case of the Company), a Guarantee (in the case of a
Guarantor) and any other Indebtedness of such Person that specifically provides
that such Indebtedness is to rank pari passu
with the Notes or such Guarantee, as the case may be, in right of
payment and

 

28

 

is not subordinated by its terms in right of
payment to any Indebtedness or other obligation of such Person which is not
Senior Debt of such Person.

 

“Significant Subsidiary,” with respect to any Person, means
any Restricted Subsidiary of such Person that satisfies the criteria for a
“significant subsidiary” set forth in Rule 1.02(w) of Regulation S-X under the
Securities Act.

 

“Standard Securitization Undertakings” means representations,
warranties, covenants and indemnities entered into by the Company or any
Subsidiary of the Company which are reasonably customary, as determined in good
faith by the Board of Directors of the Company, in an accounts receivable or equipment
transaction.

 

“Stockholders’ Agreements” means those certain stockholders’
agreements entered into in connection with the Transactions.

 

“Subsidiary” with respect to any Person, means (i) any
corporation of which the outstanding Capital Stock having at least a majority
of the votes entitled to be cast in the election of directors under ordinary
circumstances shall at the time be owned, directly or indirectly, by such
Person; or (ii) any other Person of which at least a majority of the voting
interest under ordinary circumstances is at the time, directly or indirectly,
owned by such Person.

 

“TD Acquisition” means TD Acquisition Corporation, a Delaware
corporation and the parent of TD Funding Corporation, the issuer of the Notes.

 

“TD Holding” means TD Holding Corporation, a Delaware
corporation and the parent of TD Acquisition.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) as in effect on the date on which this Indenture is
qualified under the TIA.

 

“Total Assets” means, as of any date, the total consolidated
assets of the Company and its Restricted Subsidiaries, as set forth on the
Company’s most recently available internal consolidated balance sheet as of
such date.

 

“Transaction Date” has the meaning set forth in the definition
of Consolidated fixed Change Coverage ratio.

 

“Transactions” means the merger of TD Acquisition with and
into Parent and the transactions related thereto occurring on the Issue Date,
the offering of the Notes being issued on the Issue Date, the tender offer for
the 103/8% Notes effected in connection with the merger
of TD Acquisition with and into TransDigm Holding Company and the defeasance of
any such notes not tendered for and purchased in such tender offer and
borrowings made on the Issue Date pursuant to the Credit Agreement.

 

“Trustee” means the party named as such above until a
successor replaces it in accordance with the applicable provisions of this
Indenture and thereafter means the successor serving hereunder.

 

29

 

“Unrestricted Subsidiary” of any Person means (i ) any
Subsidiary of such Person that at the time of determination shall be or
continue to be designated an Unrestricted Subsidiary by the Board of Directors
of such Person in the manner provided below; and (ii) any Subsidiary of an
Unrestricted Subsidiary.

 

The Board of Directors of
the Company may designate any Subsidiary (including any newly acquired or newly
formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns
any Capital Stock of, or owns or holds any Lien on any property of, the Company
or any other Subsidiary of the Company that is not a Subsidiary of the
Subsidiary to be so designated or another Unrestricted Subsidiary; provided that (i) the Company certifies to
the Trustee that such designation complies with Section 4.07 hereof, and
(ii) each Subsidiary to be so designated and each of its Subsidiaries has not
at the time of designation, and does not thereafter, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable with
respect to any Indebtedness pursuant to which the lender has recourse to any of
the assets of the Company or any of its Restricted Subsidiaries. The Board of
Directors of the Company may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary only if (x) immediately after giving effect to such
designation, the Company is able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) in compliance with Section 4.09
hereof and (y) immediately before and immediately after giving effect to such
designation, no Default or Event of Default shall have occurred and be
continuing. Any such designation by the Board of Directors of the Company shall
be evidenced to the Trustee by promptly filing with the Trustee a copy of the
Board Resolution giving effect to such designation and an Officers’ Certificate
certifying that such designation complied with the foregoing provisions.

 

Actions taken by an
Unrestricted Subsidiary shall not be deemed to have been taken, directly or
indirectly, by the Company or any Restricted Subsidiary.

 

“Weighted Average Life to Maturity” means, when applied to
any Indebtedness at any date, the number of years obtained by dividing (i) the
then outstanding aggregate principal amount of such Indebtedness into (ii) the
sum of the total of the products obtained by multiplying:  (A) the amount of each then remaining
installment, sinking fund, serial maturity or other required payment of
principal, including payment at final maturity, in respect thereof by (B) the
number of years (calculated to the nearest one-twelfth) which will elapse
between such date and the making of such payment.

 

“Wholly Owned Restricted Subsidiary” of any Person means any
Wholly Owned Subsidiary of such Person which at the time of determination is a
Restricted Subsidiary.

 

“Wholly Owned Subsidiary” of any Person means any Subsidiary
of such Person of which all the outstanding voting securities (other than in
the case of a Restricted Subsidiary that is incorporated in a jurisdiction
other than a State in the United States of America or the District of Columbia,
directors’ qualifying shares or an immaterial amount of shares required to be
owned by other Persons pursuant to applicable law) are owned by such Person or
any Wholly Owned Subsidiary of such Person.

 

30

 

SECTION 1.02.                                                                 Other Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
  “Acceleration Notice”

  	
   

  	
  6.02

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  
	
  “Appendix”

  	
   

  	
  2.01

  
	
  “Authentication Order”

  	
   

  	
  2.02

  
	
  “Blockage Notice”

  	
   

  	
  10.03, 12.03

  
	
  “Change of Control Offer”

  	
   

  	
  4.15

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.15

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Guaranteed
  Obligations”

  	
   

  	
  11.01

  
	
  “incur”

  	
   

  	
  4.09

  
	
  “Initial
  Lien”

  	
   

  	
  4.12

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  
	
  “Net Proceeds Offer”

  	
   

  	
  4.10

  
	
  “Net Proceeds Offer Amount”

  	
   

  	
  4.10

  
	
  “Net Proceeds Offer Payment Date”

  	
   

  	
  4.10

  
	
  “Net Proceeds Offer Trigger Date”

  	
   

  	
  4.10

  
	
  “Offer Period”

  	
   

  	
  3.09

  
	
  “pay the Notes”

  	
   

  	
  12.03

  
	
  “pay its Guarantee”

  	
   

  	
  10.03

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Payment Blockage Period”

  	
   

  	
  10.03, 12.03

  
	
  “Payment Default”

  	
   

  	
  10.03, 12.03

  
	
  “Purchase Date”

  	
   

  	
  3.09

  
	
  “Reference Date”

  	
   

  	
  4.07

  
	
  “Refunding Capital Stock”

  	
   

  	
  4.07

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Restricted Payment”

  	
   

  	
  4.07

  
	
  “Retired Capital Stock”

  	
   

  	
  4.07

  
	
  “Surviving
  Entity”

  	
   

  	
  5.01

  

 

SECTION 1.03.                                                                 Trust Indenture Act Definitions.

 

Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in
and made a part of this Indenture.

 

The following TIA terms used
in this Indenture have the following meanings:

 

“indenture securities” means the Notes;

 

“indenture security Holder” means a Holder of a Note;

 

“indenture to be qualified” means this Indenture;

 

“indenture trustee” or “institutional
trustee” means the Trustee; and

 

31

 

“obligor” on the Notes and the Guarantees means the Company
and the Guarantors, respectively, and any successor obligor upon the Notes and
the Guarantees, respectively.

 

All other terms used in this
Indenture that are defined by the TIA, defined by TIA reference to another
statute or defined by SEC rule under the TIA have the meanings so assigned to
them.

 

SECTION 1.04.                                                                 Rules of Construction.

 

Unless the context otherwise
requires:

 

(1)                                  a term has the meaning assigned to it;

 

(2)                                  an accounting term not otherwise defined has
the meaning assigned to it in accordance with GAAP;

 

(3)                                  “or” is not exclusive;

 

(4)                                  words in the singular include the plural, and
in the plural include the singular;

 

(5)                                  provisions apply to successive events and
transactions;

 

(6)                                  references to sections of or rules under the
Securities Act shall be deemed to include substitute, replacement of successor
sections or rules adopted by the SEC from time to time; and

 

(7)                                  references in this Indenture, in any context,
to any interest or other amount payable on or with respect to the Notes shall
be deemed to include any Additional Interest that is payable pursuant to the
Registration Rights Agreement.

 

ARTICLE 2

 

THE NOTES

 

SECTION 2.01.                                                                 Form and Dating.

 

Provisions relating to the
Initial Notes, the Private Exchange Notes and the Exchange Notes are set forth
in the Rule 144A/Regulation S Appendix attached hereto (the “Appendix”) which is hereby incorporated in
and expressly made part of this Indenture. 
The Initial Notes and the Trustee’s certificate of authentication with
respect thereto shall be substantially in the form of Exhibit A to the
Appendix, which is hereby incorporated in and expressly made a part of this
Indenture.  The Exchange Notes, the
Private Exchange Notes and the Trustee’s certificate of authentication with
respect thereto shall be substantially in the form of Exhibit B to the
Appendix, which is hereby incorporated in and expressly made a part of this
Indenture.  The Notes may have
notations, legends or endorsements required by law, stock exchange rule,
agreements to which the Company is subject, if any, or usage (provided that any
such notation, legend or endorsement is in a form acceptable to the Company).  Each Note shall be dated the

 

32

 

date of its authentication.  The terms of the Notes set forth in the
Appendix and Exhibits A and B to the Appendix are part of the terms of this
Indenture.

 

SECTION 2.02.                                                                 Execution and Authentication.

 

Two Officers shall sign the
Notes for the Company by manual or facsimile signature.

 

If an Officer whose
signature is on a Note no longer holds that office at the time the Trustee
authenticates the Note, the Note shall be valid nevertheless.

 

A Note shall not be valid
until an authorized signatory of the Trustee manually signs the certificate of
authentication on the Note.  The
signature shall be conclusive evidence that the Note has been authenticated
under this Indenture.

 

On the Issue Date, the Trustee
shall authenticate and deliver $400 million of 83/8%
Senior Subordinated Notes Due 2011 and, at any time and from time to time
thereafter, the Trustee shall authenticate and deliver Notes for original issue
in an aggregate principal amount specified in such order, in each case upon a
written order of the Company signed by two Officers or by an Officer and an
Assistant Secretary of the Company (each an “Authentication
Order”).  Such order shall
specify the amount of the Notes to be authenticated and the date on which the
original issue of Notes is to be authenticated, whether the Notes are to be
Initial Notes, Additional Notes, Exchange Notes or Private Exchange Notes, or
such other information as the Trustee shall reasonably request and, in the case
of an issuance of Additional Notes pursuant to Section 2.14 after the
Issue Date, shall certify that such issuance is in compliance with
Section 4.09.

 

The Notes shall be issued
only in registered form, without coupons and only in denominations of $1,000
and any integral multiple thereof.

 

The Trustee may appoint an
authenticating agent acceptable to the Company to authenticate the Notes.  Unless limited by the terms of such
appointment, an authenticating agent may authenticate Notes whenever the Trustee
may do so.  Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent.  An authenticating agent has the
same rights as the Registrar, or any Paying Agent or agent for service of
notices and demands.

 

SECTION 2.03.                                                                 Registrar and Paying Agent.

 

The Company shall maintain
an office or agency where Notes may be presented for registration of transfer
or for exchange (the “Registrar”)
and an office or agency where Notes may be presented for payment (the “Paying Agent”).  The Registrar shall keep a register of the Notes and of their
registration of transfer and exchange. 
The Company may have one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent.  The Company
may change any Paying Agent or the Registrar without notice to any Holder.

 

The Company shall enter into
an appropriate agency agreement with the Registrar or any Paying Agent not a
party to this Indenture, which shall incorporate the

 

33

 

terms of the TIA.  The agency agreement shall implement the provisions of this
Indenture that relate to such agent. 
The Company shall notify the Trustee in writing of the name and address
of any such agent.  If the Company fails
to appoint or maintain a Registrar or Paying Agent, the Trustee shall act as
such and shall be entitled to appropriate compensation therefor pursuant to
Section 7.07.  The Company or any
Wholly Owned Subsidiary incorporated or organized within the United States of
America may act as Paying Agent, Registrar or transfer agent.

 

The Company initially
appoints the Depository (as defined in the Appendix) to act as depositary with
respect to the Global Notes (as defined in the Appendix).

 

The Company initially
appoints the Trustee as Registrar and Paying Agent in connection with the
Notes.  The Registrar and Paying Agent
shall be entitled to the rights and immunities of the Trustee hereunder.

 

SECTION 2.04.                                                                 Paying Agent to Hold Money in Trust.

 

Prior to 10:00 a.m., New
York time, on or prior to each due date of the principal, premium, if any, and
interest on any Note, the Company shall deposit with the Paying Agent a sum
sufficient to pay such principal, premium and interest when so becoming due.  The Company shall require each Paying Agent
(other than the Trustee) to agree in writing that the Paying Agent shall hold
in trust for the benefit of Holders or the Trustee all money held by the Paying
Agent for the payment of principal of, premium, if any, or interest on the
Notes and shall notify the Trustee in writing of any default by the Company in
making any such payment.  While any such
default continues, the Trustee may require a Paying Agent to pay all money held
by it to the Trustee.  If the Company or
a Subsidiary acts as Paying Agent, it shall segregate the money held by it as
Paying Agent and hold it as a separate trust fund.  The Company at any time may require a Paying Agent to pay all
money held by it to the Trustee and to account for any funds disbursed by the
Paying Agent.  Upon complying with this
Section, the Paying Agent (if other than the Company or a Subsidiary of the
Company) shall have no further liability for the money delivered to the
Trustee.  Upon any bankruptcy or
reorganization proceedings relating to the Company, the Trustee shall serve as
Paying Agent for the Notes.

 

SECTION 2.05.                                                                 Holder Lists.

 

The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Holders and shall otherwise
comply with TIA § 312(a).  If the
Trustee is not the Registrar, the Company shall furnish to the Trustee, at
least seven Business Days before each interest payment date and at such other
times as the Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of
Holders and the Company shall otherwise comply with TIA §312(a).

 

SECTION 2.06.                                                                 Transfer and Exchange.

 

(a)                                  The Notes shall be issued in registered form
and shall be transferable only upon the surrender of a Note being transferred
for registration of

 

34

 

transfer. 
When a Note is presented to the Registrar with a request to register a
transfer, such Registrar shall register the transfer as requested if the
requirements of this Indenture and Section 8-401(a) of the Uniform
Commercial Code are met.  When Notes are
presented to the Registrar with a request to exchange them for an equal
principal amount of Notes of other denominations, the Registrar shall make the
exchange as requested if the same requirements are met.  No service charge shall be made for any
registration of transfer or exchange or redemption of the Notes, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such
transfer taxes or other similar governmental charge payable upon exchange or
transfer pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15 or 9.05 hereof).

 

(b)                                 The Registrar shall not be required to
register the transfer of or exchange any Note selected for redemption in whole
or in part, except the unredeemed portion of any Note being redeemed in part.

 

(c)                                  All Notes issued upon any registration of
transfer or exchange of Notes shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Notes surrendered upon such registration of transfer or
exchange.

 

(d)                                 The Company shall not be required (A) to
issue, to register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of the mailing of
notice of redemption under Section 3.03 hereof and ending at the close of
business on such day, (B) to register the transfer of or to exchange any Note
so selected for redemption in whole or in part, except the unredeemed portion
of any Note being redeemed in part or (c) to register the transfer of or to
exchange a Note between a record date and the next succeeding Interest Payment
Date.

 

(e)                                  Any Holder of a Global Note shall, by
acceptance of such Global Note, agree that transfers of beneficial interests in
such Global Note may be effected only through a book-entry system maintained by
(a) the Holder of such Global Note (or its agent or the person on whose behalf
the Global Note is held) or (b) any Holder of a beneficial interest in such
Global Note, and that ownership of beneficial interest in such Global Note
shall be required to be reflected in a book entry.

 

(f)                                    Prior to due presentment for the registration
of a transfer of any Note, the Trustee, any Paying Agent, the Registrar and the
Company may deem and treat the Person in whose name any Note is registered as
the absolute owner of such Note for the purpose of receiving payment of
principal of, premium, if any, and interest on such Notes and for all other
purposes, and none of the Trustee, any Paying Agent, the Registrar or the
Company shall be affected by notice to the contrary.

 

(g)                                 None of the Company, the Trustee, any agent
of the Company or the Trustee (including any Paying Agent or Registrar) will
have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests of a global Note
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

 

35

 

(h)                                 The Trustee shall have no obligation or duty
to monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to
any transfer of any interest in any Note (including any transfers between or
among depositary participants or beneficial owners of interest in any global
security) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do so if and
when expressly required by the terms of, this Indenture, and to examine the
same to determine substantial compliance as to form with the express
requirements hereof.

 

SECTION 2.07.                                                                 Replacement Notes.

 

If a mutilated Note is
surrendered to the Registrar or if the Holder of a Note claims that the Note
has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Note if the requirements of
Section 8-405 of the Uniform Commercial Code are met and the Holder
satisfies any other reasonable requirements of the Trustee.  If required by the Trustee or the Company,
such Holder shall furnish an indemnity or a security bond sufficient in the
judgment of the Company and the Trustee to protect the Company, the Trustee,
the Paying Agent and the Registrar from any loss which any of them may suffer
if a Note is replaced.  The Company and
the Trustee may charge the Holder for their expenses in replacing a Note.

 

Every replacement Note is an
additional obligation of the Company and shall be entitled to all of the
benefits of this Indenture equally and proportionally with all other Notes duly
issued hereunder.

 

SECTION 2.08.                                                                 Outstanding Notes.

 

Notes outstanding at any
time are all Notes authenticated by the Trustee except for those canceled by
it, those reductions in the interest in a Global Note effected by the Trustee
in accordance with the provisions of this Indenture, those delivered to it for
cancellation and those described in this Section as not outstanding.  Except as set forth in Section 2.09
hereof, a Note does not cease to be outstanding because the Company or an
Affiliate of the Company holds the Note.

 

If a Note is replaced
pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee and the Company receive proof satisfactory to them that the replaced
Note is held by a bona fide purchaser.

 

If the principal amount of
any Note is considered paid under Section 4.01 hereof, it ceases to be
outstanding and interest on it ceases to accrue.

 

If the Paying Agent (other
than the Company, a Subsidiary or an Affiliate of any thereof) segregates and
holds in trust, in accordance with this Indenture, on a redemption date or
maturity date money sufficient to pay all principal, premium, if any, and
interest payable on that date with respect to the Notes (or portions thereof)
to be redeemed or maturing, as the case may be, then on and after that date
such Notes (or portions thereof) shall cease to be outstanding and interest on
them shall cease to accrue.

 

36

 

SECTION 2.09.                                                                 Treasury Notes.

 

In determining whether the
Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Company, or by any Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company, shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes that
the Trustee knows are so owned shall be so disregarded.

 

SECTION 2.10.                                                                 Temporary Notes.

 

Until Definitive Notes are
ready for delivery, the Company may prepare and the Trustee, upon receipt of an
Authentication Order,  shall
authenticate temporary Notes.  Temporary
Notes shall be substantially in the form of Definitive Notes but may have
variations that the Company considers appropriate for temporary Notes and as
shall be reasonably acceptable to the Trustee. 
Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate Definitive Notes and deliver them in exchange for temporary
Notes.  Holders of temporary Notes shall
be entitled to all of the benefits of this Indenture.

 

SECTION 2.11.                                                                 Cancellation.

 

The Company at any time may
deliver Notes to the Trustee for cancellation. 
The Registrar and the Paying Agent shall forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or
payment.  The Trustee and no one else
shall cancel (subject to the record retention requirements of the Exchange Act)
all Notes surrendered for registration of transfer, exchange, payment,
replacement or cancellation in accordance with its customary procedures and, if
requested in writing, deliver a certificate of such destruction to the Company
unless the Company directs the Trustee in writing to deliver canceled Notes to
the Company.  The Company may not issue
new Notes to replace Notes that it has redeemed, paid or that have been
delivered to the Trustee for cancellation.

 

SECTION 2.12.                                                                 Defaulted Interest.

 

If the Company defaults in a
payment of interest on the Notes, the Company shall pay defaulted interest
(plus interest on such defaulted interest at the applicable interest rate on
the Notes to the extent lawful) in any lawful manner.  The Company may pay the defaulted interest to the Persons who are
Holders on a subsequent special record date. 
The Company shall fix or cause to be fixed any such special record date
and payment date to the reasonable satisfaction of the Trustee (provided that
no such special record date shall be less than 10 days prior to the related
payment date for such defaulted interest) and shall promptly mail or cause to
be mailed to each Holder a notice that states the special record date, the
related payment date and the amount of defaulted interest to be paid.

 

37

 

SECTION 2.13.                                                                 CUSIP or ISIN Numbers.

 

The Company in issuing the
Notes may use “CUSIP”, “ISIN” or other similar identification numbers (if then
generally in use) and, if so, the Trustee shall use “CUSIP”, “ISIN” or such
other similar identification numbers in notices of redemption or repurchase as
a convenience to Holders; provided, however,
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in
any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not
be affected by any defect in or the omission of such numbers.  The Company shall promptly notify the
Trustee of any change in the “CUSIP”, “ISIN” or such other similar
identification numbers.

 

SECTION 2.14.                                                                 Issuance of Additional Notes.

 

The Company shall be
entitled, subject to its compliance with Section 4.09, to issue Additional
Notes under this Indenture which shall have identical terms as the Initial
Notes issued on the Issue Date, other than with respect to the date of issuance
and issue price.  The Initial Notes
issued on the Issue Date, any Additional Notes and all Exchange Notes or
Private Exchange Notes issued in exchange therefor shall be treated as a single
class for all purposes under this Indenture.

 

With respect to any
Additional Notes, the Company shall set forth in a Board Resolution and an
Officers’ Certificate of the Company, a copy of each which shall be delivered
to the Trustee, the following information:

 

(1)  the aggregate principal amount of such
Additional Notes to be authenticated and delivered pursuant to this Indenture;

 

(2)  the issue price, the issue date and the
“CUSIP”, “ISIN” or other similar identification numbers of such Additional
Notes; provided, however, that no
Additional Notes may be issued at a price that would cause such Additional
Notes to have “original issue discount” within the meaning of Section 1273
of the Code; and

 

(3)  whether such Additional Notes shall be
Transfer Restricted Notes and issued in the form of Initial Notes as set forth
in the Appendix to this Indenture or shall be issued in the form of Exchange
Notes as set forth in Exhibit B to the Appendix.

 

ARTICLE 3

 

REDEMPTION AND PREPAYMENT

 

SECTION 3.01.                                                                 Notices to Trustee.

 

If the Company elects to
redeem Notes pursuant to the optional redemption provisions of
Section 3.07 hereof, it shall furnish to the Trustee, at least 45 days but
not more than 60 days before a redemption date, an Officers’ Certificate
setting forth (i) the clause of this Indenture pursuant to which the redemption
shall occur, (ii) the redemption date, (iii) the redemption price and (iv) the
“CUSIP”, “ISIN” or other similar identification numbers of the Notes to be
redeemed.

 

38

 

SECTION 3.02.                                                                 Selection of Notes to Be Redeemed.

 

If less than all of the
Notes are to be redeemed or purchased in an offer to purchase at any time, the
Trustee shall select the Notes to be redeemed or purchased among the Holders of
the Notes in compliance with the requirements of the principal national
securities exchange, if any, on which the Notes are listed or, if the Notes are
not so listed, on a pro rata
basis, by lot or in accordance with any other method the Trustee considers fair
and appropriate.  In the event of
partial redemption by lot, the particular Notes to be redeemed shall be
selected, unless otherwise provided herein, not less than 30 nor more than 60
days prior to the redemption date by the Trustee from the outstanding Notes not
previously called for redemption.

 

The Trustee shall promptly
notify the Company in writing of the Notes selected for redemption and, in the
case of any Note selected for partial redemption, the principal amount to be
redeemed. Notes and portions of Notes selected shall be in amounts of $1,000 or
whole multiples of $1,000. The provisions of this Indenture that apply to Notes
called for redemption also apply to portions of Notes called for redemption.

 

SECTION 3.03.                                                                 Notice of Redemption.

 

Subject to the provisions of
Section 3.09 hereof, at least 30 days but not more than 60 days before a
redemption date, the Company shall mail or cause to be mailed, by first class
mail, a notice of redemption to each Holder whose Notes are to be redeemed at
its registered address.

 

The notice shall identify
the Notes to be redeemed, including “CUSIP”, “ISIN” or other similar
identification numbers, if any, and shall state:

 

(a)                                  the redemption date;

 

(b)                                 the redemption price;

 

(c)                                  if any Note is being redeemed in part, the
portion of the principal amount of such Note to be redeemed and that, after the
redemption date upon surrender of such Note, a new Note or Notes in principal
amount equal to the unredeemed portion shall be issued upon cancellation of the
original Note;

 

(d)                                 the name and address of the Paying Agent;

 

(e)                                  that Notes called for redemption must be surrendered
to the Paying Agent to collect the redemption price;

 

(f)                                    that, unless the Company defaults in making
such redemption payment, interest on Notes called for redemption ceases to
accrue on and after the redemption date;

 

(g)                                 the paragraph of the Notes and/or
Section of this Indenture pursuant to which the Notes called for
redemption are being redeemed; and

 

39

 

(h)                                 that no representation is made as to the
correctness or accuracy of the “CUSIP”, “ISIN” or other similar identification
number, if any, listed in such notice or printed on the Notes.

 

At the Company’s request,
the Trustee shall give the notice of redemption in the Company’s name and at
its expense; provided, however,
that the Company shall have delivered to the Trustee, at least 45 days prior to
the redemption date, an Officers’ Certificate requesting that the Trustee give
such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.

 

SECTION 3.04.                                                                 Effect of Notice of Redemption.

 

Once notice of redemption is
mailed in accordance with Section 3.03 hereof, Notes called for redemption
become irrevocably due and payable on the redemption date at the redemption
price. A notice of redemption may not be conditional.

 

SECTION 3.05.                                                                 Deposit of Redemption Price.

 

Prior to 10 a.m. New York
Time on the redemption date, the Company shall deposit with the Trustee or with
the Paying Agent money sufficient to pay the redemption price of and accrued
interest on all Notes to be redeemed on that date.  The Trustee or the Paying Agent shall promptly return to the
Company any money deposited with the Trustee or the Paying Agent by the Company
in excess of the amounts necessary to pay the redemption price of, and accrued
interest on, all Notes to be redeemed.

 

If the Company complies with
the provisions of the preceding paragraph, on and after the redemption date,
interest shall cease to accrue on the Notes or the portions of Notes called for
redemption. If a Note is redeemed on or after an interest record date but on or
prior to the related interest payment date, then any accrued and unpaid
interest shall be paid to the Person in whose name such Note was registered at
the close of business on such record date. If any Note called for redemption
shall not be so paid upon surrender for redemption because of the failure of
the Company to comply with the preceding paragraph, interest shall be paid on
the unpaid principal, from the redemption date until such principal is paid,
and to the extent lawful on any interest not paid on such unpaid principal, in
each case at the applicable interest rate on the Notes.

 

SECTION 3.06.                                                                 Notes Redeemed in Part.

 

Upon surrender of a Note
that is redeemed in part, the Company shall issue and, upon the Company’s
written request, the Trustee shall authenticate for the Holder at the expense
of the Company a new Note equal in principal amount to the unredeemed portion
of the Note surrendered.

 

SECTION 3.07.                                                                 Optional Redemption.

 

(a)                                  Except as provided in Section 3.07(b)
hereof, the Notes shall not be redeemable at the Company’s option prior to
July 15, 2006. Thereafter, the Notes shall be subject to redemption at any
time at the option of the Company, in whole or in part, upon not less than 30
nor more than 60 days’ notice, at the redemption prices (expressed as
percentages of principal amount thereof) set forth below plus accrued and
unpaid

 

40

 

interest to the applicable
redemption date, if redeemed during the twelve month period commencing on
July 15 of the year set forth below:

 

	
  Year

  	
   

  	
  Percentage
  of

  Principal

  Amount

  	
   

  
	
  2006

  	
   

  	
  106.281

  	
  %

  
	
  2007

  	
   

  	
  104.188

  	
  %

  
	
  2008

  	
   

  	
  102.094

  	
  %

  
	
  2009 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)                                 Notwithstanding the foregoing, prior to July 15,
2006, the Company may at its option on one or more occasions redeem Notes
(which includes Additional Notes, if any) in an aggregate principal amount not
to exceed 35% of the aggregate principal amount of the Notes (which includes
Additional Notes, if any) originally issued at a redemption price (expressed as
a percentage of principal amount) of 108.375%, plus accrued and unpaid interest
to the redemption date, with the net cash proceeds from one or more Equity
Offerings; provided, however,
that (1) at least 65% of such aggregate principal amount of Notes (which
includes Additional Notes, if any) remains outstanding immediately after the
occurrence of each such redemption (other than Notes held, directly or
indirectly, by the Company or its Affiliates); and (2) each such redemption
occurs within 60 days after the date of the related Equity Offering.

 

(c)                                  Any redemption pursuant to this
Section 3.07 shall be made pursuant to the provisions of Sections 3.01
through 3.06 hereof.

 

SECTION 3.08.                                                                 Mandatory Redemption; Open Market
Purchases.

 

The Company shall not be
required to make any mandatory redemption or sinking fund payments with respect
to the Notes.  The Company may at any
time and from time to time purchase Notes in the open market or otherwise.

 

SECTION 3.09.                                                                 Offer to Purchase by Application of
Net Proceeds Offer Amount.

 

In the event that, pursuant
to Section 4.10 hereof, the Company shall be required to commence a Net
Proceeds Offer (as defined in Section 4.10 hereof), it shall follow the
procedures specified below.

 

The Net Proceeds Offer shall
remain open for a period of 20 Business Days following its commencement or such
longer period as may be required by applicable law (the “Offer Period”). No later than five
Business Days after the termination of the Offer Period (the “Purchase Date”), the Company shall
purchase the Net Proceeds Offer Amount or, if less than the Net Proceeds Offer
Amount has been tendered, all Notes tendered in response to the Net Proceeds
Offer.  Payment for any Notes so purchased
shall be made in the same manner as interest payments are made.

 

If the Purchase Date is on
or after an interest record date and on or before the related interest payment
date, any accrued and unpaid interest shall be paid to the

 

41

 

Person in whose name a Note is registered at
the close of business on such record date, and no additional interest shall be
payable to Holders who tender Notes pursuant to the Net Proceeds Offer.

 

Upon the commencement of a Net
Proceeds Offer, the Company shall send, by first class mail, a notice to the
Trustee and each of the Holders, with a copy to the Trustee. The notice shall
contain all instructions and materials necessary to enable such Holders to
tender Notes pursuant to the Net Proceeds Offer. The Net Proceeds Offer shall
be made to all Holders. The notice, which shall govern the terms of the Net
Proceeds Offer, shall state:

 

(a)                                  that the Net Proceeds Offer is being made
pursuant to this Section 3.09 and Section 4.10 hereof and the length
of time the Net Proceeds Offer shall remain open and, if the Net Proceeds Offer
is also made to holders of other Senior Subordinated Debt of the Company or a
Restricted Subsidiary of the Company pursuant to Section 4.10 hereof, the
notice shall identify such Senior Subordinated Debt and state that the Net
Proceeds Offer is also made to holders of such Senior Subordinated Debt;

 

(b)                                 the Net Proceeds Offer Amount, the purchase
price and the Purchase Date;

 

(c)                                  that any Note not tendered or accepted for
payment shall continue to accrue interest;

 

(d)                                 that, unless the Company defaults in making
such payment, any Note accepted for payment pursuant to the Net Proceeds Offer
shall cease to accrue interest after the Purchase Date;

 

(e)                                  that Holders electing to have a portion of a
Note purchased pursuant to a Net Proceeds Offer may only elect to have such
Note purchased in integral multiples of $1,000;

 

(f)                                    that Holders electing to have a Note
purchased pursuant to any Net Proceeds Offer shall be required to surrender the
Note, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Note completed, or transfer by book-entry transfer, to the
Company, a depositary, if appointed by the Company, or a Paying Agent at the
address specified in the notice at least three days before the Purchase Date;

 

(g)                                 that Holders shall be entitled to withdraw
their election if the Company, the depositary or the Paying Agent, as the case
may be, receives, not later than the expiration of the Offer Period, a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Note the Holder delivered for purchase and
a statement that such Holder is withdrawing his election to have such Note
purchased;

 

(h)                                 that, if the aggregate principal amount of
Notes surrendered by Holders and other Senior Subordinated Debt surrendered by
the holders thereof exceeds the Offer Amount, the Company shall select the
Notes and other Senior

 

42

 

Subordinated Debt of the
Company or a Restricted Subsidiary of the Company to be purchased on a pro rata
basis (based on the amounts of Notes and such other Senior Subordinated Debt
tendered and with such adjustments as may be deemed appropriate by the Company
so that only Notes or other Senior Subordinated Debt in denominations of
$1,000, or integral multiples thereof, shall be purchased); and

 

(i)                                     that Holders whose Notes were purchased only
in part shall be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered (or transferred by book-entry transfer).

 

On or before the Purchase
Date, the Company shall, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the
Net Proceeds Offer Amount of Notes and other Senior Subordinated Debt of the
Company or a Restricted Subsidiary of the Company or portions thereof tendered
pursuant to the Net Proceeds Offer, or if less than the Net Proceeds Offer
Amount has been tendered, all Notes and other Senior Subordinated Debt of the
Company or a Restricted Subsidiary of the Company or portions thereof tendered,
and shall deliver to the Trustee an Officers’ Certificate stating that such
Notes or such other Senior Subordinated Debt or portions thereof were accepted
for payment by the Company in accordance with the terms of this
Section 3.09.  The Company, the
Depository or the Paying Agent, as the case may be, shall promptly (but in any
case not later than five days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by
such Holder and accepted by the Company for purchase, and the Company shall
promptly issue a new Note, and the Trustee, upon written request from the
Company shall authenticate and mail or deliver such new Note to such Holder, in
a principal amount equal to any unpurchased portion of the Note surrendered.
Any Note not so accepted shall be promptly mailed or delivered by the Company
to the Holder thereof. The Company shall publicly announce the results of the
Net Proceeds Offer on the Purchase Date.

 

Other than as specifically
provided in this Section 3.09, any purchase pursuant to this
Section 3.09 shall be made pursuant to the provisions of Sections 3.01
through 3.06 hereof.

 

To the extent that the
provisions of any securities laws or regulations conflict with this
Section 3.09 or Section 4.10 hereof, the Company shall comply with
the applicable securities laws and regulations and shall not be deemed to have
breached its obligations under this Section 3.09 or Section 4.10
hereof.

 

ARTICLE 4

 

COVENANTS

 

SECTION 4.01.                                                                 Payment of Notes.

 

The Company shall pay or
cause to be paid the principal amount, premium, if any, and interest on the
Notes on the dates and in the manner provided in the Notes. Principal amount,
premium, if any, and interest shall be considered paid on the date due if the
Paying Agent, if other than the Company or a Subsidiary thereof, holds as

 

43

 

of 10:00 a.m. New York time on the due date
money deposited by the Company in immediately available funds and designated
for and sufficient to pay all principal amount, premium, if any, and interest
then due. The Company shall pay all Additional Interest, if any, in the same
manner on the same dates and in the amounts set forth in the Registration
Rights Agreement.

 

The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at a rate equal to the then applicable
interest rate on the Notes to the extent lawful; it shall pay interest
(including postpetition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest (without regard to any applicable grace
period) at the same rate to the extent lawful.

 

SECTION 4.02.                                                                 Maintenance of Office or Agency.

 

The Company shall maintain
in the Borough of Manhattan, the City of New York, an office or agency (which
may be an office of the Trustee or an affiliate of the Trustee or any
Registrar) where Notes may be surrendered for registration of transfer or for
exchange and where notices and demands to or upon the Company in respect of the
Notes and this Indenture may be served. The Company shall give prompt written
notice to the Trustee of the location, and any change in the location, of such
office or agency.  If at any time the
Company shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee.

 

The Company may also from
time to time designate one or more other offices or agencies where the Notes
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, the City of New York for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency.

 

The Company hereby
designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.03 hereof.

 

SECTION 4.03.                                                                 Reports.

 

(a)                                  Whether or not required by the rules and
regulations of the SEC, so long as any Notes are outstanding, the Company shall
furnish to the Holders of Notes (i) all quarterly and annual financial
information that would be required to be contained in a filing with the SEC on
Forms 10-Q and 10-K if the Company were required to file such forms, including
a “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” that describes the financial condition and results of operations of
the Company and its consolidated Subsidiaries (showing in reasonable detail,
either on the face of the financial statements or in the footnotes thereto and
in Management’s Discussion and Analysis of Financial Condition and Results of
Operations, the financial condition and results of operations of the Company
and its Restricted Subsidiaries separate from the financial condition and
results of operations of the Unrestricted

 

44

 

Subsidiaries of the Company)
and, with respect to the annual information only, a report thereon by the
Company’s certified independent accountants and (ii) all current reports that
would be required to be filed with the SEC on Form 8-K if the Company were
required to file such reports, in each case, within the time periods specified
in the SEC’s rules and regulations.  For
so long as Parent is a Guarantor, the Company may satisfy its obligations under
the first sentence of this Section 4.03(a) by furnishing financial
information relating to Parent; provided that
the same is accompanied by consolidating information that explains in
reasonable detail the differences between the information relating to Parent,
on the one hand, and the information relating to the Company and its Restricted
Subsidiaries on a stand-alone basis, on the other hand.  In addition, following the consummation of
the Registered Exchange Offer (as defined in the Appendix), whether or not
required by the rules and regulations of the SEC, the Company shall file a copy
of all such information and reports with the SEC for public availability within
the time periods specified in the SEC’s rules and regulations (unless the SEC
will not accept such a filing) and make such information available to
securities analysts and prospective investors upon request.  The Company shall at all times comply with
TIA § 314(a).

 

(b)                                 For so long as any Notes remain outstanding,
the Company and the Guarantors shall furnish to the Holders and to securities
analysts and prospective investors, upon their request, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities
Act.

 

(c)                                  Should the Company deliver to the Trustee any
such information, reports or certificates or any annual reports, information,
documents and other reports pursuant to TIA § 314(a), delivery of such
information, reports or certificates or any annual reports, information, documents
and other reports to the Trustee is for informational purposes only and the
Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers’
Certificates).

 

SECTION 4.04.                                                                 Compliance Certificate.

 

(a)                                  The Company and each Guarantor (to the extent
that such Guarantor is so required under the TIA) shall deliver to the Trustee,
within 90 days after the end of each fiscal year, an Officers’ Certificate
stating that a review of the activities of the Company and its Subsidiaries
during the preceding fiscal year has been made under the supervision of the
signing Officers with a view to determining whether the Company has kept,
observed, performed and fulfilled its obligations under this Indenture, and
further stating, as to each such Officer signing such certificate, that to the best
of his or her knowledge the Company has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in
the performance or observance of any of the terms, provisions and conditions of
this Indenture (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which he or she may have
knowledge and what action the Company is taking or proposes to take with
respect thereto) and that to the best of his or her knowledge no event has
occurred and remains in existence by reason of which payments on account of the
principal of or interest, if any, on the Notes is prohibited or if such event
has

 

45

 

occurred, a description of the
event and what action the Company is taking or proposes to take with respect
thereto. For purposes of this paragraph, such compliance shall be determined
without regard to any period of grace or requirement of notice provided under this
Indenture.

 

(b)                                 The Company shall, so long as any of the
Notes are outstanding, deliver to the Trustee, forthwith upon any Officer
becoming aware of any Default or Event of Default, an Officers’ Certificate
specifying such Default or Event of Default and what action the Company is
taking or proposes to take with respect thereto.

 

SECTION 4.05.                                                                 [Intentionally Omitted].

 

SECTION 4.06.                                                                 Stay, Extension and Usury Laws.

 

The Company and each of the
Guarantors covenants (to the extent that it may lawfully do so) that it shall
not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the
performance of this Indenture; and the Company and each of the Guarantors (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to
the Trustee, but shall suffer and permit the execution of every such power as
though no such law has been enacted.

 

SECTION 4.07.                                                                 Restricted Payments.

 

The Company shall not, and
shall not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly:

 

(1)  declare or pay any dividend or make any
distribution on or in respect of shares of the Company or any Restated
Subsidiary’s Capital Stock to holders of such Capital Stock (other than dividends
or distributions payable in Qualified Capital Stock of the Company and
dividends or distributions payable to the Company or a Restricted Subsidiary
and other than pro rata dividends
or other distributions made by a Subsidiary that is not a Wholly Owned
Subsidiary to minority stockholders (or owners of an equivalent interest in the
case of a Subsidiary that is an entity other than a corporation));

 

(2)  purchase, redeem or otherwise acquire or
retire for value any Capital Stock of the Company or of any direct or indirect
parent of the Company or of a Restricted Subsidiary of the Company held by any
Affiliate of the Company (other than a Restricted Subsidiary of the Company) or
any warrants, rights or options to purchase or acquire shares of any class of such
Capital Stock;

 

(3)  make any principal payment on, purchase,
defease, redeem, prepay, decrease or otherwise acquire or retire for value,
prior to any scheduled final maturity, scheduled repayment or scheduled sinking
fund payment, any Indebtedness of the Company, or of any Guarantor, that is
subordinate or junior in right of payment to the Notes or any Guarantee, as
applicable (other than the purchase, defeasance or other acquisition of such
Indebtedness purchased in anticipation of satisfying a sinking fund

 

46

 

obligation, principal installment or final
maturity, in each case due within one year of such purchase, defeasance or
other acquisition); or

 

(4)  make any Investment (other than Permitted
Investments)

 

(each of the foregoing actions set forth in
clauses (1), (2), (3) and (4) being referred to as a “Restricted Payment”); if at the time of
such Restricted Payment or immediately after giving effect thereto:

 

(i)  a Default or an Event of Default shall have
occurred and be continuing; or

 

(ii)  the Company is not able to incur at least
$1.00 of additional Indebtedness (other than Permitted Indebtedness) in
compliance with Section 4.09 hereof; or

 

(iii)  the aggregate amount of Restricted Payments
(including such proposed Restricted Payment) made subsequent to the Issue Date
(other than Restricted Payments made pursuant to clauses (2), (3), (4), (5),
(6), (7), (8), (9), (10) and (11) of the following paragraph) shall exceed the
sum of, without duplication:

 

(v) 50% of the cumulative
Consolidated Net Income (or if cumulative Consolidated Net Income shall be a
loss, minus 100% of such loss) of the Company earned subsequent to
June 30, 2003 and on or prior to the date the Restricted Payment occurs
(the “Reference Date”) (treating
such period as a single accounting period); provided,
however, that if, at the time of a proposed Restricted Payment under
this paragraph of this Section 4.07, the Consolidated Leverage Ratio of
the Company is less than 4.5 to 1, for purposes of calculating the availability
of amounts hereunder for such Restricted Payment only, the reference to 50% in
this clause (v) shall be deemed to be 75%; plus

 

(w) 100% of the aggregate
net cash proceeds (including the fair market value of property other than cash
that would constitute Marketable Securities or a Permitted Business) received
by the Company from any Person (other than a Subsidiary of the Company) from
the issuance and sale subsequent to the Issue Date and on or prior to the Reference
Date of Qualified Capital Stock of the Company; plus

 

(x) without duplication of
any amounts included in clause (iii)(w) above, 100% of the aggregate net cash
proceeds of any equity contribution received subsequent to the Issue Date by
the Company from a holder of the Company’s Capital Stock (excluding, in the
case of clauses (iii)(w) and (x), any net cash proceeds from an Equity Offering
to the extent used to redeem the Notes in compliance with the provisions set
forth under Section 3.07(b) hereof); plus

 

(y) the amount by which
Indebtedness of the Company is reduced on the Company’s balance sheet upon the
conversion or exchange subsequent to the Issue Date of any Indebtedness of the
Company for Qualified Capital Stock of the Company (less the amount of any
cash, or the fair value of any other property, distributed by the Company upon
such conversion or exchange); provided,
however, that the foregoing amount shall not exceed the net cash
proceeds received by the Company or any

 

47

 

Restricted Subsidiary from the sale of such
Indebtedness (excluding net cash proceeds from sales to a Subsidiary of the
Company or to an employee stock ownership plan or a trust established by the
Company or any of its Subsidiaries for the benefit of their employees); plus

 

(z) an amount equal to the
sum of (I) 100% of the aggregate net proceeds (including the fair market value
of property other than cash that would constitute Marketable Securities or a
Permitted Business) received by the Company or any Restricted Subsidiary (A)
from any sale or other disposition of any Investment (other than a Permitted
Investment) in any Person (including an Unrestricted Subsidiary) made by the
Company and its Restricted Subsidiaries and (B) representing the return of
capital or principal (excluding dividends and distributions otherwise included
in Consolidated Net Income) with respect to such Investment, and (II) the
portion (proportionate to the Company’s equity interest in an Unrestricted Subsidiary)
of the fair market value of the net assets of an Unrestricted Subsidiary at the
time such Unrestricted Subsidiary is designated a Restricted Subsidiary; provided, however, that, in the case of
item (II), the foregoing sum shall not exceed, in the case of any Unrestricted
Subsidiary, the amount of Investments (excluding Permitted Investments)
previously made (and treated as a Restricted Payment) by the Company or any
Restricted Subsidiary in such Unrestricted Subsidiary.

 

Notwithstanding the
foregoing, the provisions set forth in the immediately preceding paragraph
shall not prohibit:

 

(1)  the payment of any dividend or the
consummation of any irrevocable redemption within 60 days after the date of
declaration of such dividend or notice of such redemption if the dividend or
payment of the redemption price, as the case may be, would have been permitted
on the date of declaration or notice;

 

(2)  any Restricted Payment made out of the net
cash proceeds of the substantially concurrent sale of, or made by exchange for,
Qualified Capital Stock of the Company (other than Capital Stock issued or sold
to a Subsidiary of the Company or an employee stock ownership plan or to a
trust established by the Company or any of its Subsidiaries for the benefit of
their employees and other than Designated Preferred Stock) or a substantially
concurrent cash capital contribution received by the Company from its
shareholders; provided, however, that
the net cash proceeds from such sale or such cash capital contribution (to the extent
so used for such Restricted Payment) shall be excluded from the calculation of
amounts under clauses (iii)(w) and (iii)(x) of the immediately preceding
paragraph;

 

(3)  the acquisition of any Indebtedness of the
Company or a Guarantor that is a Subsidiary of the Company that is subordinate
or junior in right of payment to the Notes or the applicable Guarantee through
the application of net proceeds of a substantially concurrent sale for cash
(other than to a Subsidiary of the Company) of Refinancing Indebtedness that is
subordinate or junior in right of payment to the Notes or the applicable
Guarantee;

 

(4)  if no Default or Event of Default shall have
occurred and be continuing or would occur as a consequence thereof, the
declaration and payment of

 

48

 

dividends to holders of any
class or series of Designated Preferred Stock (other than Disqualified Capital
Stock) issued after the Issue Date; provided
that, at the time of such issuance, the Company, after giving effect to such
issuance on a pro forma basis,
would have had a Consolidated Fixed Charge Coverage Ratio of at least 2.0 to
1.0;

 

(5)  payments to Parent or TD Holding for the
purpose of permitting, and in an amount equal to the amount required to permit,
Parent or TD Holding to redeem or repurchase Parent’s or TD Holding’s common
equity or options in respect thereof, in each case in connection with the
repurchase provisions of employee stock option or stock purchase agreements or
other agreements to compensate management employees or upon the death,
disability, retirement, severance or termination of employment of management
employees; provided that all such
redemptions or repurchases pursuant to this clause (5) shall not exceed in any
fiscal year the sum of (A) $5.0 million plus (B) any amounts not utilized in
any preceding fiscal year following the Issue Date that were otherwise
available under this clause for such purchases (which aggregate amount shall be
increased by the amount of any net cash proceeds received from the sale since
the Issue Date of Capital Stock (other than Disqualified Capital Stock) to
members of the Company’s management team that have not otherwise been applied
to the payment of Restricted Payments pursuant to the terms of clause (iii) of
the immediately preceding paragraph or clause (2) of this paragraph and by the
cash proceeds of any “key-man” life insurance policies which are used to make
such redemptions or repurchases); provided,
further, that the cancellation of Indebtedness owing to the Company
from members of management of the Company or any of its Restricted Subsidiaries
in connection with any repurchase of Capital Stock of Parent or TD Holding (or
warrants or options or rights to acquire such Capital Stock) will not be deemed
to constitute a Restricted Payment under this Indenture;

 

(6)  the making of distributions, loans or
advances to TD Holding or Parent to be used by TD Holding or Parent solely (A)
to pay its franchise taxes and other fees required to maintain its corporate
existence and (B) to pay for operating expenses incurred by Parent or TD
Holding in the ordinary course of its business; provided, however, that, in the case of clause (B), such
distributions, loans or advances (other than to pay for operating expenses
incurred by Parent or TD Holding on behalf of or for the benefit of the Company
and its Subsidiaries) shall not, in the aggregate, exceed $500,000 per annum;

 

(7)  payments to Parent or TD Holding, without
duplication, in respect of Federal, state and local taxes directly attributable
to (or arising as a result of) the operations of the Company and its
consolidated Subsidiaries and actually used by Parent or TD Holding to pay such
taxes; provided, however, that
the amount of such payments in any fiscal year do not exceed the amount that
the Company and its consolidated Subsidiaries would be required to pay in
respect of Federal, state and local taxes for such fiscal year were the Company
to pay such taxes as a stand-alone taxpayer;

 

(8)  repurchases of Capital Stock deemed to occur
upon the exercise of stock options if such Capital Stock represents a portion
of the exercise price thereof;

 

(9)  additional Restricted Payments in an
aggregate amount not to exceed $25.0 million;

 

49

 

(10)  Permitted Acquisition Payments;

 

(11)  payments of dividends on Disqualified
Capital Stock issued in compliance with Section 4.09 hereof;

 

(12)  Restricted Payments made with Net Cash
Proceeds from Asset Sales remaining after application thereof as required by
Section 4.10 hereof (including after the making by the Company of any Net
Proceeds Offer required to be made by the Company pursuant to such
Section and the application of the Net Proceeds Offer Amount to purchase all
Notes and other Senior Subordinated Debt of the Company or a Restricted
Subsidiary of the Company tendered therein); and

 

(13)  upon occurrence of a Change of Control and
within 60 days after the completion of the Change of Control Offer pursuant to
Section 4.15 hereof (including the purchase of all Notes tendered), any
purchase or redemption of Obligations of the Company that are subordinate or
junior in right of payment to the Notes required pursuant to the terms thereof
as a result of such Change of Control at a purchase or redemption price not to
exceed 101% of the outstanding principal amount thereof, plus accrued and
unpaid interest thereon, if any; provided,
however, that (A) at the time of such purchase or redemption, no
Default or Event of Default shall have occurred and be continuing (or would
result therefrom), (B) the Company would be able to incur at least $1.00 of
additional Indebtedness (other than Permitted Indebtedness) in compliance with
Section 4.09 hereof after giving pro
forma effect to such Restricted Payment and (C) such purchase or
redemption is not made, directly or indirectly, from the proceeds of (or made
in anticipation of) any issuance of Indebtedness by the Company or any
Subsidiary.

 

In determining the aggregate
amount of Restricted Payments made subsequent to the Issue Date in accordance
with clause (iii) of the first paragraph of this Section 4.07, (a) amounts
expended pursuant to clauses (1), (12) and (13) of the immediately preceding
paragraph shall be included in such calculation, and (b) amounts expended
pursuant to clauses (2), (3), (4), (5), (6), (7), (8), (9), (10) and (11) of
the immediately preceding paragraph shall be excluded from such calculation.

 

The Board of Directors of
the Company may designate any Restricted Subsidiary of the Company to be an
Unrestricted Subsidiary as specified in the definition of “Unrestricted
Subsidiary”.  For purposes of making
such determination, all outstanding Investments by the Company and its Restricted
Subsidiaries (except to the extent repaid in cash) in the Subsidiary so
designated shall be deemed to be Restricted Payments at the time of the
designation and shall reduce the amount available for Restricted Payments under
the first paragraph of this Section 4.07. 
All of those outstanding Investments shall be deemed to constitute
Investments in an amount equal to the fair market value of the Investments at
the time of such designation.  Such
designation shall only be permitted if the Restricted Payment would be
permitted at the time and if the Restricted Subsidiary otherwise meets the
definition of an Unrestricted Subsidiary.

 

50

 

SECTION 4.08.                                                                 Dividend and Other Payment
Restrictions Affecting Subsidiaries.

 

The Company shall not, and
shall not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly, create or otherwise cause or permit to exist or become effective
any consensual encumbrance or consensual restriction on the ability of any
Restricted Subsidiary of the Company to: (a) pay dividends or make any other
distributions on or in respect of its Capital Stock; (b) make loans or advances
or pay any Indebtedness or other obligation owed to the Company or any other
Restricted Subsidiary of the Company that is a Guarantor; or (c) transfer any
of its property or assets to the Company or any other Restricted Subsidiary of
the Company that is a Guarantor, except, with respect to clauses (a), (b) and
(c), for such encumbrances or restrictions existing under or by reason of: (1)
applicable law; (2) this Indenture; (3) non-assignment provisions of any
contract or any lease of any Restricted Subsidiary of the Company entered into
in the ordinary course of business; (4) any instrument governing Acquired
Indebtedness, which encumbrance or restriction is not applicable to any Person,
or the properties or assets of any Person, other than the Person or the
properties or assets of the Person so acquired; (5) the Credit Agreement as
entered into on the Issue Date or any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings
thereof; provided that any
restrictions imposed pursuant to any such amendment, modification, restatement,
renewal, increase, supplement, refunding, replacement or refinancing are
ordinary and customary with respect to syndicated bank loans (under the
relevant circumstances); (6) agreements existing on the Issue Date to the
extent and in the manner such agreements are in effect on the Issue Date; (7)
restrictions on the transfer of assets subject to any Lien permitted under this
Indenture imposed by the holder of such Lien; (8) restrictions imposed by any
agreement to sell assets or Capital Stock permitted under this Indenture to any
Person pending the closing of such sale; (9) any agreement or instrument
governing Capital Stock of any Person that is acquired; (10) any Purchase Money
Note or other Indebtedness or other contractual requirements of a
Securitization Entity in connection with a Qualified Securitization
Transaction; provided that such
restrictions apply only to such Securitization Entity; (11) other Indebtedness
or Permitted Subsidiary Preferred Stock outstanding on the Issue Date or
permitted to be issued or incurred under this Indenture; provided that any such restrictions are
ordinary and customary with respect to the type of Indebtedness being incurred
or Preferred Stock being issued (under the relevant circumstances); (12)
restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business; and (13) any
encumbrances or restrictions imposed by any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of the contracts, instruments or obligations referred to in
clauses (1) through (4) and (6) through (12) above; provided that such amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings are,
in the good faith judgment of the Company’s Board of Directors (evidenced by a
Board Resolution) whose judgment shall be conclusively binding, not materially
more restrictive with respect to such dividend and other payment restrictions
than those contained in the dividend or other payment restrictions prior to
such amendment, modification, restatement, renewal, increase, supplement,
refunding, replacement or refinancing.

 

51

 

SECTION 4.09.                                                                 Incurrence of Indebtedness.

 

The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur, issue, assume, guarantee, acquire, become liable, contingently
or otherwise, with respect to, or otherwise become responsible for payment of (collectively,
“incur”) any Indebtedness (other
than Permitted Indebtedness); provided,
however, that if no Default or Event of Default shall have occurred
and be continuing at the time or as a consequence of the incurrence of any such
Indebtedness, the Company and the Restricted Subsidiaries of the Company that
are Guarantors may incur Indebtedness (including, without limitation, Acquired
Indebtedness) and Restricted Subsidiaries of the Company that are not
Guarantors may incur Acquired Indebtedness, in each case if on the date of the
incurrence of such Indebtedness, after giving effect to the incurrence thereof,
the Consolidated Fixed Charge Coverage Ratio of the Company would have been
greater than 2.0 to 1.0.

 

SECTION 4.10.                                                                 Asset Sales.

 

The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, consummate an Asset
Sale unless (i) the Company or the applicable Restricted Subsidiary, as the
case may be, receives consideration at the time of such Asset Sale at least
equal to the fair market value of the assets sold or otherwise disposed of (as
determined in good faith by the Company’s Board of Directors); (ii) at least
75% of the consideration received by the Company or the Restricted Subsidiary,
as the case may be, from such Asset Sale shall be in the form of cash or Cash
Equivalents; provided that the
amount of: (a) any liabilities (as shown on the Company’s or such Restricted
Subsidiary’s most recent balance sheet) of the Company or any such Restricted
Subsidiary (other than liabilities that are by their terms subordinated to the
Notes) that are assumed by the transferee of any such assets; (b) any notes or
other obligations received by the Company or any such Restricted Subsidiary
from such transferee that are converted by the Company or such Restricted
Subsidiary into cash within 90 days of the receipt thereof (to the extent of
the cash received); and (c) any Designated Noncash Consideration received by
the Company or any of its Restricted Subsidiaries in such Asset Sale having an
aggregate fair market value, taken together with all other Designated Noncash
Consideration received pursuant to this clause (c) that is at that time
outstanding, not to exceed 5% of Total Assets at the time of the receipt of
such Designated Noncash Consideration (with the fair market value of each item
of Designated Noncash Consideration being measured at the time received and
without giving effect to subsequent changes in value), shall, in each of (a),
(b) and (c) above, be deemed to be cash for the purposes of this provision or
for purposes of the second paragraph of this Section 4.10; and (iii) upon
the consummation of an Asset Sale, the Company shall apply, or cause such
Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset
Sale within 365 days of receipt thereof either (A) to prepay any Senior Debt or
Indebtedness of a Restricted Subsidiary that is not a Guarantor and, in the
case of any such Indebtedness under any revolving credit facility, effect a
corresponding reduction in the availability under such revolving credit
facility (or effect a permanent reduction in the availability under such
revolving credit facility regardless of the fact that no prepayment is required
in order to do so (in which case no prepayment should be required)), (B) to
reinvest in Productive Assets (provided that this requirement shall be deemed
satisfied if the Company or such Restricted Subsidiary by the end of

 

52

 

such 365-day period has entered into a binding
agreement under which it is contractually committed to reinvest in Productive
Assets and such investment is consummated within 120 days from the date on
which such binding agreement is entered into and, with respect to the amount of
such investment, the reference to the 366th day after an Asset Sale
in the second following sentence shall be deemed to be a reference to the 121st
day after the date on which such binding agreement is entered into (but only if
such 121st day occurs later than such 366th day)), or (C)
a combination of prepayment and investment permitted by the foregoing clauses
(iii)(A) and (iii)(B).  Pending the
final application of any such Net Cash Proceeds, the Company or such Restricted
Subsidiary may temporarily reduce Indebtedness under a revolving credit
facility, if any, or otherwise invest such Net Cash Proceeds in Cash
Equivalents. On the 366th day after an Asset Sale or such earlier date, if any,
as the Board of Directors of the Company or of such Restricted Subsidiary
determines by Board Resolution not to apply the Net Cash Proceeds relating to
such Asset Sale as set forth in clauses (iii)(A), (iii)(B) and (iii)(C) of the
next preceding sentence (each, a “Net
Proceeds Offer Trigger Date”), such aggregate amount of Net Cash
Proceeds which have not been applied on or before such Net Proceeds Offer
Trigger Date as permitted in clauses (iii)(A), (iii)(B) and (iii)(C) of the
next preceding sentence (each a “Net
Proceeds Offer Amount”) shall be applied by the Company or such
Restricted Subsidiary to make an offer to purchase (the “Net Proceeds Offer”) on a date (the “Net Proceeds Offer Payment Date”) not less
than 30 nor more than 60 days following the applicable Net Proceeds Offer
Trigger Date, from all Holders and holders of any other Senior Subordinated
Debt of the Company or a Restricted Subsidiary of the Company requiring the
making of such an offer, on a pro rata
basis, the maximum amount of Notes and such other Senior Subordinated Debt that
may be purchased with the Net Proceeds Offer Amount at a price equal to 100% of
their principal amount (or, in the event such other Senior Subordinated Debt
was issued with significant original issue discount, 100% of the accreted value
thereof), plus accrued and unpaid interest thereon, if any, to the date of
purchase (or, in respect of such other Senior Subordinated Debt, such lesser
price, if any, as may be provided for by the terms of such Senior Subordinated
Debt); provided, however, that if
at any time any non-cash consideration (including any Designated Noncash
Consideration) received by the Company or any Restricted Subsidiary of the
Company, as the case may be, in connection with any Asset Sale is converted
into or sold or otherwise disposed of for cash (other than interest received
with respect to any such non-cash consideration), then such conversion or
disposition shall be deemed to constitute an Asset Sale hereunder and the Net
Cash Proceeds thereof shall be applied in accordance with this
Section 4.10. Notwithstanding the foregoing, if a Net Proceeds Offer
Amount is less than $10.0 million, the application of the Net Cash Proceeds
constituting such Net Proceeds Offer Amount to a Net Proceeds Offer may be
deferred until such time as such Net Proceeds Offer Amount plus the aggregate
amount of all Net Proceeds Offer Amounts arising subsequent to the Net Proceeds
Offer Trigger Date relating to such initial Net Proceeds Offer Amount from all
Asset Sales by the Company and its Restricted Subsidiaries aggregates at least
$10.0 million, at which time the Company or such Restricted Subsidiary shall
apply all Net Cash Proceeds constituting all Net Proceeds Offer Amounts that
have been so deferred to make a Net Proceeds Offer (the first date the
aggregate of all such deferred Net Proceeds Offer Amounts is equal to $10.0
million or more shall be deemed to be a Net Proceeds Offer Trigger Date).

 

Notwithstanding the
immediately preceding paragraph, the Company and its Restricted Subsidiaries
shall be permitted to consummate an Asset Sale without

 

53

 

complying with such paragraph to the extent
that: (i) at least 75% of the consideration for such Asset Sale constitutes
Productive Assets, cash, Cash Equivalents and/or Marketable Securities; and
(ii) such Asset Sale is for fair market value; provided
that any consideration consisting of cash, Cash Equivalents and/or Marketable
Securities received by the Company or any of its Restricted Subsidiaries in
connection with any Asset Sale permitted to be consummated under this paragraph
shall constitute Net Cash Proceeds subject to the provisions of the preceding
paragraph.

 

Notice of each Net Proceeds
Offer will be mailed to the record Holders as shown on the register of Holders
within 30 days following the Net Proceeds Offer Trigger Date, with a copy to
the Trustee, and shall comply with the procedures set forth in
Section 3.09 hereof.  To the extent
that the aggregate amount of Notes and other Senior Subordinated Debt tendered
pursuant to a Net Proceeds Offer is less than the Net Proceeds Offer Amount,
the Company may use any remaining Net Proceeds Offer Amount for general
corporate purposes or for any other purpose not prohibited by this Indenture.
Upon completion of any such Net Proceeds Offer, the Net Proceeds Offer Amount
shall be reset at zero.

 

The Company shall comply
with the requirements of Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant
to a Net Proceeds Offer. To the extent that the provisions of any securities
laws or regulations conflict with the provisions of this Section 4.10, the
Company shall comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations under this
Section 4.10 by virtue thereof.

 

SECTION 4.11.                                                                 Transactions with Affiliates.

 

(a)                                  The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, enter into or
permit to occur any transaction or series of related transactions (including,
without limitation, the purchase, sale, lease or exchange of any property or
the rendering of any service) with, or for the benefit of, any of its
Affiliates (an “Affiliate Transaction”),
other than Affiliate Transactions on terms that are not materially less
favorable than those that might reasonably have been obtained in a comparable
transaction at such time on an arm’s-length basis from a Person that is not an
Affiliate of the Company; provided, however,
that for a transaction or series of related transactions with an aggregate
value of $5.0 million or more, at the Company’s option, either: (i) a majority
of the disinterested members of the Board of Directors of the Company shall
determine in good faith that such Affiliate Transaction is on terms that are
not materially less favorable than those that might reasonably have been
obtained in a comparable transaction at such time on an arm’s-length basis from
a Person that is not an Affiliate of the Company or (ii) the Board of Directors
of the Company or any such Restricted Subsidiary party to such Affiliate
Transaction shall have received an opinion from a nationally recognized
investment banking, appraisal or accounting firm that such Affiliate
Transaction is either fair, from a financial standpoint, to the Company and its
Restricted Subsidiaries or is on terms not materially less favorable than those
that might reasonably have been obtained in a comparable transaction at such
time on an arm’s-length basis from a Person that is not an Affiliate of the
Company; and provided, further,
that for an Affiliate Transaction with an aggregate value of $20.0 million
or more the

 

54

 

Board of Directors of the
Company or any such Restricted Subsidiary party to such Affiliate Transaction
shall have received an opinion from a nationally recognized investment banking,
appraisal or accounting firm that such Affiliate Transaction is either fair,
from a financial standpoint, to the Company and its Restricted Subsidiaries or
is on terns not materially less favorable than those that might reasonably have
been obtained in a comparable transaction at such time on an arm’s-length basis
from a Person that is not an Affiliate of the Company.

 

(b)                                 The restrictions set forth in
Section 4.11(a) hereof shall not apply to: (i) reasonable fees and
compensation paid to, and indemnity provided on behalf of, officers, directors,
employees or consultants of the Company or any Restricted Subsidiary of the
Company as determined in good faith by the Company’s Board of Directors or
senior management; (ii) transactions exclusively between or among the Company
and any of its Restricted Subsidiaries or exclusively between or among such
Restricted Subsidiaries, provided
such transactions are not otherwise prohibited by this Indenture; (iii) any
agreement as in effect as of the Issue Date or any amendment thereto or any
transaction contemplated thereby (including pursuant to any amendment thereto)
or by any replacement agreement thereto so long as any such amendment or
replacement agreement is not more disadvantageous to the Holders in any
material respect than the original agreement as in effect on the Issue Date as
determined in good faith by the Board of Directors of Company; (iv) Restricted
Payments or Permitted Investments permitted by this Indenture; (v) transactions
effected as part of a Qualified Securitization Transaction; (vi) the payment of
customary annual management, consulting and advisory fees and related expenses
to the Permitted Holders and their Affiliates made pursuant to any financial
advisory, financing, underwriting or placement agreement or in respect of other
investment banking activities, including, without limitation, in connection
with acquisitions or divestitures which are approved by the Board of Directors
of the Company or such Restricted Subsidiary in good faith; (vii) payments or
loans to employees or consultants that are approved by the Board of Directors
of the Company in good faith; (viii) sales of Qualified Capital Stock; (ix) the
existence of, or the performance by the Company or any of its Restricted
Subsidiaries of its obligations under the terms of, any stockholders’ agreement
(including any registration rights agreement or purchase agreement related
thereto) to which it is a party as of the Issue Date and any similar agreements
which it may enter into thereafter; provided,
however, that the existence of, or the performance by the Company or
any of its Restricted Subsidiaries of obligations under, any future amendment
to any such existing agreement or under any similar agreement entered into
after the Issue Date shall only be permitted by this clause (ix) to the extent
that the terms of any such amendment or new agreement are not disadvantageous
to the Holders of Notes in any material respect; (x) transactions permitted by,
and complying with, the provisions of Article 5 and Section 11.06
hereof, and (xi) any issuance of securities or other payments, awards, grants
in cash, securities or otherwise pursuant to, or the funding of, employment
arrangements, stock options and stock ownership plans approved by the Board of
Directors of the Company.

 

SECTION 4.12.                                                                 Liens.

 

The Company shall not, and
shall not cause or permit any Restricted Subsidiary of the Company that is a
Guarantor to, incur any Secured Debt that is not Senior Debt of such Person,
unless contemporaneously therewith such Person makes

 

55

 

effective provision to secure the Notes or
the relevant Guarantee, as applicable, equally and ratably with such Secured
Debt for so long as such Secured Debt is secured by a Lien (the “Initial Lien”); provided, however, that the Company will be permitted to
defease on the Issue Date the 103/8% Notes in accordance
with the terms of the indenture governing those notes without having to comply
with this Section 4.12 in connection therewith.  Any Lien created for the benefit of the Holders of the Notes
pursuant to the preceding sentence shall provide by its terms that such Lien
shall be automatically and unconditionally released and discharged upon the
release and discharge of the Lien securing the other Secured Debt and that
holders of such other Secured Debt may exclusively control the disposition of
property subject to the Initial Lien.

 

SECTION 4.13.                                                                 Conduct of Business.

 

The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, engage in any
businesses a majority of whose revenues are not derived from businesses that
are the same or reasonably similar, ancillary or related to, or a reasonable
extension, development or expansion of, the businesses in which the Company and
its Restricted Subsidiaries are engaged on the Issue Date (which shall include,
without limitation, engineered components businesses not within the aerospace
industry).  Parent shall not engage in
any business other than managing its investment in the Company and any business
incidental thereto (including issuing securities to finance such investment).

 

SECTION 4.14.                                                                 Corporate Existence.

 

Subject to Article 5
and Section 11.06 hereof, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect (i) its
corporate existence, and the corporate, partnership or other existence of each
of its Restricted Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the
Company or any such Restricted Subsidiary and (ii) the rights (charter and
statutory), licenses and franchises of the Company and its Restricted
Subsidiaries; provided, however,
that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any of its
Restricted Subsidiaries, if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Restricted Subsidiaries, taken as a whole, and that the loss
thereof is not adverse in any material respect to the Holders of the Notes.

 

SECTION 4.15.                                                                 Offer to Repurchase upon Change of
Control.

 

(a)                                  If a Change of Control occurs, each Holder
shall have the right to require that the Company purchase all or a portion of
such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”), at a purchase
price equal to 101% of the principal amount thereof plus accrued interest to
the date of purchase.  Within 30 days
following the date upon which the Change of Control occurred, the Company must
send, by first class mail, a notice to the Trustee and each Holder, which
notice shall govern the terms of the Change of Control Offer. Such notice shall
state, among other things, the purchase date, which must be no earlier than 30
days nor later than 60 days from the date such notice is mailed, other than as
may be required by law (the “Change of

 

56

 

Control Payment Date”). Holders electing to have a Note purchased
pursuant to a Change of Control Offer shall be required to surrender the Note,
with the form entitled “Option of Holder to Elect Purchase” on the reverse of
the Note completed, to the Paying Agent at the address specified in the notice
prior to the close of business on the third Business Day prior to the Change of
Control Payment Date.

 

(b)                                 On the Change of Control Payment Date, the
Company shall, to the extent lawful, (1) accept for payment all Notes or
portions thereof properly tendered pursuant to the Change of Control Offer, (2)
deposit with the Paying Agent an amount equal to the Change of Control Payment
in respect of all Notes or portions thereof so tendered and (3) deliver or
cause to be delivered to the applicable Trustee the Notes so accepted together
with an Officers’ Certificate stating the aggregate principal amount of Notes
or portions thereof being purchased by the Company. The Paying Agent shall
promptly mail to each Holder of Notes so tendered the Change of Control Payment
for such Notes, and the Trustee shall promptly authenticate and mail or deliver
(or cause to be transferred by book entry) to each Holder a new Note equal in
principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note will be
in a principal amount of $1,000 or an integral multiple thereof. The Company
shall publicly announce the results of the Change of Control Offer on or as
soon as practicable after the Change of Control Payment Date.

 

Prior to the mailing of the
notice referred to in Section 4.15(a) above, but in any event within 30
days following any Change of Control, the Company shall: (i) repay in full all
Indebtedness under the Credit Agreement and all other Senior Debt the terms of
which require repayment upon a Change of Control; or (ii) obtain the requisite
consents under the Credit Agreement and all such other Senior Debt to permit
the repurchase of the Notes as provided below. The Company’s failure to comply
with the covenant described in the immediately preceding sentence shall
constitute an Event of Default described in clause (c) and not in clause (b)
under Section 6.01 hereof.

 

(c)                                  The Company shall comply with the
requirements of Rule 14e-1 under the Exchange Act to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant
to a Change of Control Offer. To the extent that the Company complies with the
provisions of any such securities laws or regulations, the Company shall not be
deemed to have breached its obligations under this Section 4.15.

 

(d)                                 Notwithstanding anything to the contrary in
this Section 4.15, the Company shall not be required to make a Change of
Control Offer upon a Change of Control if a third party makes the Change of
Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.15 hereof and purchases all Notes
validly tendered and not withdrawn under such Change of Control Offer.

 

SECTION 4.16.                                                                 No Senior Subordinated Debt.

 

The Company shall not, and
shall not permit any Restricted Subsidiary that is a Guarantor to, incur or
suffer to exist Indebtedness that is senior in right of payment to the Notes or
such Guarantor’s Guarantee, as the case may be, and subordinate

 

57

 

in right of payment to any other Indebtedness
of the Company or such Guarantor, as the case may be.

 

SECTION 4.17.                                                                 Additional Guarantees.

 

The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, create or acquire
another Domestic Restricted Subsidiary unless such Domestic Restricted
Subsidiary executes and delivers a supplemental indenture to the Indenture,
providing for a senior subordinated guarantee of payment of the Notes by such
Domestic Restricted Subsidiary; provided,
however, that such Domestic Restricted Subsidiary need not execute
and deliver such a supplemental indenture for so long as such Domestic
Restricted Subsidiary has total assets or Indebtedness of $10,000 or less.

 

SECTION 4.18.                                                                 Limitation on Preferred Stock of
Restricted Subsidiaries.

 

The Company shall not permit
any of its Restricted Subsidiaries to issue any Preferred Stock (other than to
the Company or to a Restricted Subsidiary of the Company) or permit any Person
(other than the Company or a Restricted Subsidiary of the Company) to own any
Preferred Stock of any Restricted Subsidiary of the Company, other than
Permitted Subsidiary Preferred Stock. The provisions of this Section 4.18
will not apply to (w) any of the Restricted Subsidiaries of the Company that
are Guarantors (x) any transaction as a result of which neither the Company nor
any of its Restricted Subsidiaries will own any Capital Stock of the Restricted
Subsidiary whose Preferred Stock is being issued or sold and (y) Preferred
Stock that is Disqualified Capital Stock and is issued in compliance with
Section 4.09 hereof.

 

ARTICLE 5

 

SUCCESSORS

 

SECTION 5.01.                                                                 Merger, Consolidation, or Sale of
Assets.

 

The Company shall not, in a
single transaction or series of related transactions, consolidate or merge with
or into any Person, or sell, assign, transfer, lease, convey or otherwise
dispose of (or cause or permit any Restricted Subsidiary of the Company to
sell, assign, transfer, lease, convey or otherwise dispose of) all or
substantially all of the Company’s assets (determined on a consolidated basis
for the Company and the Company’s Restricted Subsidiaries) to any Person unless
(i) either: (a) the Company shall be the surviving or continuing corporation;
or (b) the Person (if other than the Company) formed by such consolidation or
into which the Company is merged or the Person which acquires by sale,
assignment, transfer, lease, conveyance or other disposition the properties and
assets of the Company and of the Company’s Restricted Subsidiaries
substantially as an entirety (the “Surviving
Entity”): (x) shall be a corporation organized and validly existing
under the laws of the United States of America or any State thereof or the
District of Columbia; and (y) shall expressly assume, by supplemental indenture
(in form and substance satisfactory to the Trustee), executed and delivered to
the Trustee, the due and punctual payment of the principal of, premium, if any,
and interest on all of the Notes and the performance of every covenant of the
Notes, this Indenture and the Registration Rights Agreement to be performed or
observed on the

 

58

 

part of the Company; (ii) except in the case
of a merger of the Company with or into a Wholly Owned Restricted Subsidiary of
the Company and except in the case of a merger entered into solely for the
purpose of reincorporating the Company in another jurisdiction, immediately
after giving effect to such transaction and the assumption contemplated by
clause (i)(b)(y) above (including giving effect to any Indebtedness and
Acquired Indebtedness incurred in connection with or in respect of such
transaction), the Company or such Surviving Entity, as the case may be, shall
be able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) pursuant to Section 4.09 hereof, (iii) except in
the case of a merger of the Company with or into a Wholly Owned Restricted
Subsidiary of the Company and except in the case of a merger entered into
solely for the purpose of reincorporating the Company in another jurisdiction,
immediately after giving effect to such transaction and the assumption
contemplated by clause (i)(b)(y) above (including, without limitation, giving
effect to any Indebtedness and Acquired Indebtedness incurred and any Lien
granted in connection with or in respect of the transaction), no Default or
Event of Default shall have occurred or be continuing; and (iv) the Company or
the Surviving Entity shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, sale, assignment, transfer, lease, conveyance or other disposition and,
if a supplemental indenture is required in connection with such transaction,
such supplemental indenture comply with the applicable provisions of this
Indenture and that all conditions precedent in this Indenture relating to such
transaction have been satisfied.

 

For purposes of the
foregoing, the transfer (by lease, assignment, sale or otherwise, in a single
transaction or series of transactions) of all or substantially all of the
properties or assets of one or more Restricted Subsidiaries of the Company the
Capital Stock of which constitutes all or substantially all of the properties
and assets of the Company, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company. However,
transfer of assets between or among the Company and its Restricted Subsidiaries
will not be subject to this Section 5.01.

 

Notwithstanding anything in
this Section 5.01 to the contrary, the merger of TD Funding Corporation
with and into TransDigm Inc. on the Issue Date shall be permitted under this
Indenture without complying with the requirements of this Section 5.01.

 

SECTION 5.02.                                                                 Successor Corporation Substituted.

 

Upon any consolidation,
combination or merger, or any transfer of all or substantially all of the
assets of the Company in accordance with Section 5.01 hereof, in which the
Company is not the continuing corporation, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
lease or transfer is made shall succeed to, and be substituted for, and may
exercise every right and power of the Company under this Indenture and the
Notes with the same effect as if such surviving entity had been named as such
and that, in the event of a conveyance or transfer (but not a lease), the
conveyor or transferor (but not a lessor) shall be released from the provisions
of this Indenture.

 

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ARTICLE 6

 

DEFAULTS AND REMEDIES

 

SECTION 6.01.                                                                 Events of Default.

 

“Event of Defaults” are:

 

(a)                                  the failure to pay interest on any Notes when
the same becomes due and payable if the default continues for a period of 30
days (whether or not such payment shall be prohibited by Article 10 or
Article 12 hereof);

 

(b)                                 the failure to pay the principal on any Notes
when such principal becomes due and payable, at maturity, upon redemption or
otherwise (including the failure to make a payment to purchase Notes tendered
pursuant to a Change of Control Offer or a Net Proceeds Offer on the date
specified for such payment in the applicable offer to purchase) (whether or not
such payment shall be prohibited by Article 10 or Article 12 hereof);

 

(c)                                  a default in the observance or performance of
any other covenant or agreement contained herein if the default continues for a
period of 30 days after the Company receives written notice specifying the
default (and demanding that such default be remedied) from the Trustee or the
Holders of at least 25% of the outstanding principal amount of the Notes
(except in the case of a default with respect to Section 5.01 or
Section 11.06 hereof, which will constitute an Event of Default with such
notice requirement but without such passage of time requirement);

 

(d)                                 the failure to pay at final stated maturity
(giving effect to any applicable grace periods and any extensions thereof) the
principal amount of any Indebtedness of the Company or any Significant
Subsidiary of the Company (other than a Securitization Entity), or the
acceleration of the final stated maturity of any such Indebtedness, if the
aggregate principal amount of such Indebtedness, together with the principal
amount of any other such Indebtedness in default for failure to pay principal
at final maturity or which has been accelerated, aggregates $10.0 million or
more at any time;

 

(e)                                  one or more judgments in an aggregate amount
in excess of $10.0 million shall have been rendered against the Company or any
of its Significant Subsidiaries and such judgments remain undischarged, unpaid
or unstayed for a period of 60 days after such judgment or judgments become
final and non-appealable;

 

(f)                                    the Company or any of its Significant
Subsidiaries pursuant to or within the meaning of Bankruptcy Law:

 

(i)  commences a voluntary case,

 

(ii)  consents to the entry of an order for relief
against it in an involuntary case,

 

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(iii)  consents to the appointment of a custodian
of it or for all or substantially all of its property, or

 

(iv)  makes a general assignment for the benefit
of its creditors, or

 

(g)                                 a court of competent jurisdiction enters an
order or decree under any Bankruptcy Law that:

 

(i)  is for relief against the Company or any of
its Significant Subsidiaries;

 

(ii)  appoints a custodian of the Company or any
of its Significant Subsidiaries or for all or substantially all of the property
of the Company or any of its Significant Subsidiaries; or

 

(iii)  orders the liquidation of the Company or any
of its Significant Subsidiaries;

 

and the order or decree
remains unstayed and in effect for 60 consecutive days.

 

SECTION 6.02.                                                                 Acceleration.

 

If any Event of Default
(other than an Event of Default specified in clause (f) or (g) of
Section 6.01 hereof with respect to the Company) occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare the principal of and accrued interest on all the
Notes to be due and payable immediately by notice in writing to the Company and
the Trustee specifying the respective Event of Default and that it is a “notice
of acceleration” (the “Acceleration Notice”),
and the same (i) shall become immediately due and payable or (ii) if there are
any amounts outstanding under the Credit Agreement, shall become immediately
due and payable upon the first to occur of an acceleration under the Credit
Agreement or five Business Days after receipt by the Company and the
Representative under the Credit Agreement of such Acceleration Notice but only
if such Event of Default is then continuing. If an Event of Default specified
in clause (f) or (g) of Section 6.01 hereof with respect to the Company
occurs and is continuing, then all unpaid principal of, and premium, if any,
and accrued and unpaid interest on all the outstanding Notes shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.

 

At any time after a
declaration of acceleration with respect to the Notes as described in the
preceding paragraph, the Holders of a majority in principal amount of the Notes
may rescind and cancel such declaration and its consequences (i) if the
rescission would not conflict with any judgment or decree, (ii) if all existing
Events of Default have been cured or waived except nonpayment of principal or
interest that has become due solely because of the acceleration, (iii) to the
extent the payment of such interest is lawful, interest on overdue installments
of interest and overdue principal, which has become due otherwise than by such
declaration of acceleration, has been paid, (iv) if the Company has paid the
Trustee its reasonable compensation and reimbursed the Trustee for its
expenses, disbursements and advances; and (v) in the event of the cure or
waiver

 

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of an Event of Default of the type described
in clause (f) or (g) of Section 6.01 hereof, the Trustee shall have
received an Officers’ Certificate and an Opinion of Counsel that such Event of
Default has been cured or waived. No such rescission shall affect any
subsequent Default or impair any right consequent thereto.

 

SECTION 6.03.                                                                 Other Remedies.

 

If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal, premium, if any, and interest on the Notes or
to enforce the performance of any provision of the Notes or this Indenture.

 

The Trustee may maintain a
proceeding even if it does not possess any of the Notes or does not produce any
of them in the proceeding. A delay or omission by the Trustee or any Holder of
a Note in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence
in the Event of Default. All remedies are cumulative to the extent permitted by
law.

 

SECTION 6.04.                                                                 Waiver of Past Defaults.

 

Holders of not less than a
majority in aggregate principal amount of the then outstanding Notes by notice
to the Trustee may on behalf of the Holders of all of the Notes waive an
existing Default or Event of Default and its consequences hereunder, except a
continuing Default or Event of Default in the payment of the principal of,
premium and interest on the Notes (including in connection with an offer to
purchase) (provided, however,
that the Holders of a majority in aggregate principal amount at maturity of the
then outstanding Notes may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration).
Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon.

 

SECTION 6.05.                                                                 Control by Majority.

 

Holders of a majority in
principal amount of the then outstanding Notes may direct the time, method and
place of conducting any proceeding for exercising any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee
may refuse to follow any direction that conflicts with law or this Indenture,
that the Trustee determines may be unduly prejudicial to the rights of other
Holders of Notes or that may involve the Trustee in personal liability.

 

SECTION 6.06.                                                                 Limitation on Suits.

 

A Holder of a Note may
pursue a remedy with respect to this Indenture or the Notes only if:

 

(a)                                  the Holder of a Note gives to the Trustee
written notice of a continuing Event of Default;

 

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(b)                                 the Holders of at least 25% in principal
amount of the then outstanding Notes make a written request to the Trustee to
pursue the remedy;

 

(c)                                  such Holder of a Note or Holders of Notes
offer and, if requested, provide to the Trustee indemnity satisfactory to the
Trustee against any loss, liability or expense;

 

(d)                                 the Trustee does not comply with the request
within 60 days after receipt of the request and the offer and, if requested,
the provision of indemnity; and

 

(e)                                  during such 60-day period the Holders of a
majority in principal amount of the then outstanding Notes do not give the
Trustee a direction inconsistent with the request.

 

A Holder of a Note may not
use this Indenture to prejudice the rights of another Holder of a Note or to
obtain a preference or priority over another Holder of a Note.

 

SECTION 6.07.                                                                 Rights of Holders of Notes to
Receive Payment.

 

Notwithstanding any other
provision of this Indenture, the right of any Holder of a Note to receive
payment of principal, premium and interest on the Note, on or after the
respective due dates expressed in the Note (including in connection with an
offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

 

SECTION 6.08.                                                                 Collection Suit by Trustee.

 

If an Event of Default
specified in Section 6.01 (a) or (b) hereof occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an
express trust against the Company for the whole amount of principal amount of,
premium and interest remaining unpaid on the Notes and interest on overdue
principal and, to the extent lawful, interest and such further amount as shall
be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.

 

SECTION 6.09.                                                                 Trustee May File Proofs of Claim.

 

The Trustee is authorized to
file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders of the Notes allowed in any
judicial proceedings relative to the Company (or any other obligor upon the
Notes), its creditors or its property and shall be entitled and empowered to
collect, receive and distribute any money or other property payable or
deliverable on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee, and in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it
for the reasonable compensation, expenses, disbursements and advances of the
Trustee,

 

63

 

its agents and counsel, and any other amounts
due the Trustee under Section 7.07 hereof. To the extent that the payment
of any such compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof out of the estate in any such proceeding, shall be
denied for any reason, payment of the same shall be secured by a Lien on, and
shall be paid out of, any and all distributions, dividends, money, securities
and other properties that the Holders may be entitled to receive in such
proceeding whether in liquidation or under any plan of reorganization or arrangement
or otherwise. Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan
of reorganization, arrangement, adjustment or composition affecting the Notes
or the rights of any Holder, or to authorize the Trustee to vote in respect of
the claim of any Holder in any such proceeding.

 

SECTION 6.10.                                                                 Priorities.

 

Any money collected by the
Trustee pursuant to this Article and any other money or property
distributable in respect of the Company’s obligations under this Indenture
after an Event of Default shall be applied in the following order:

 

First:
to the Trustee (including a predecessor Trustee), its agents and attorneys for
amounts due under Section 7.07 hereof, including payment of all
compensation, expense and liabilities incurred, and all advances made, by the
Trustee (including a predecessor Trustee) and the costs and expenses of
collection;

 

Second: to Holders of Notes for amounts due and unpaid on the Notes for principal
amount, premium and interest, ratably, without preference or priority of any
kind, according to the amounts due and payable on the Notes for principal
amount, premium and interest, respectively; and

 

Third:
to the Company or to such party as a court of competent jurisdiction shall
direct.

 

The Trustee may fix a record
date and payment date for any payment to Holders of Notes pursuant to this
Section 6.10.

 

SECTION 6.11.                                                                 Undertaking for Costs.

 

In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section does not
apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to
Section 6.07 hereof, or a suit by Holders of more than 10% in principal
amount of the then outstanding Notes.

 

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ARTICLE 7

 

TRUSTEE

 

SECTION 7.01.                                                                 Duties of Trustee.

 

(a)                                  If an Event of Default has occurred and is
continuing, the Trustee shall exercise such of the rights and powers vested in
it by this Indenture, and use the same degree of care and skill in its
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of his or her own affairs.

 

(b)                                 Except during the continuance of an Event of
Default:

 

(i)  the duties of the Trustee shall be
determined solely by the express provisions of this Indenture and the Trustee
need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

 

(ii)  in the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture.
However, the Trustee shall examine the certificates and opinions which are
specifically required to be delivered to the Trustee by any provision of this
Indenture to determine whether or not they conform to the requirements of this
Indenture.

 

(c)                                  The Trustee may not be relieved from liabilities
for its own negligent action, its own negligent failure to act, or its own
willful misconduct, except that:

 

(i)  this paragraph does not limit the effect of
paragraphs (b) or (e) of this Section;

 

(ii)  the Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer, unless it is
proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(iii)  the Trustee shall not be liable with respect
to any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 6.05 hereof.

 

(d)                                 Whether or not therein expressly so provided,
every provision of this Indenture that in any way relates to the Trustee is
subject to paragraphs (a), (b), (c), (e) and (f) of this Section.

 

(e)                                  No provision of this Indenture shall require
the Trustee to expend or risk its own funds or incur any liability.  The Trustee shall be under no obligation to
exercise any of its rights and powers under this Indenture at the request of
any Holders, unless such Holder shall have offered to the Trustee security and
indemnify satisfactory to it against any loss, liability or expense.

 

65

 

(f)                                    The Trustee shall not be liable for interest
on any money received by it except as the Trustee may agree in writing with the
Company. Money held in trust by the Trustee need not be segregated from other
funds except to the extent required by law.

 

SECTION 7.02.                                                                 Rights of Trustee.

 

(a)                                  The Trustee may conclusively rely upon any
document believed by it to be genuine and to have been signed or presented by
the proper Person.  The Trustee need not
investigate any fact or matter stated in the document.

 

(b)                                 Before the Trustee acts or refrains from
acting, it may require an Officers’ Certificate or an Opinion of Counsel or
both. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.
The Trustee may consult with counsel of its selection and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection from liability in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon.

 

(c)                                  The Trustee may act through its attorneys and
agents and shall not be responsible for the misconduct or negligence of any
agent appointed with due care.

 

(d)                                 The Trustee shall not be liable for any
action it takes or omits to take in good faith that it believes to be
authorized or within the rights or powers conferred upon it by this Indenture.

 

(e)                                  Unless otherwise specifically provided in
this Indenture, any demand, request, direction or notice from the Company shall
be sufficient if signed by an Officer of the Company.

 

(f)                                    The Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture at the
request or direction of any of the Holders unless such Holders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that might be incurred by it in compliance with such
request or direction.

 

(g)                                 The Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evience of Indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney at the sole cost of the Company and shall incur no
liability or additional liability of any kind by reason of such inquiry or
investigation.

 

(h)                                 The rights, privileges, protections,
immunities and benefits given to the Trustee, including, without limitation,
its right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

 

66

 

(i)                                     The permissive right of the Trustee to take
or refrain from taking any actions enumerated in this Indenture shall not be
construed as a duty.

 

SECTION 7.03.                                                                 Individual Rights of Trustee.

 

The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and
may otherwise deal with the Company or any Affiliate of the Company with the
same rights it would have if it were not Trustee.  However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee or resign. 
The Registrar or any Paying Agent may do the same with like rights and
duties.  The Trustee is also subject to
Sections 7.10 and 7.11 hereof.

 

SECTION 7.04.                                                                 Trustee’s Disclaimer.

 

The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Notes, it shall not be accountable for the Company’s use
of the proceeds from the Notes or any money paid to the Company or upon the
Company’s direction under any provision of this Indenture, it shall not be
responsible for the use or application of any money received by any Paying
Agent other than the Trustee, and it shall not be responsible for any statement
or recital herein or any statement in the Notes or any other document in
connection with the sale of the Notes or pursuant to this Indenture other than
its certificate of authentication.

 

SECTION 7.05.                                                                 Notice of Defaults.

 

(a)                                  The Trustee shall not be deemed to have
notice of any Default or Event of Default unless a Responsible Officer of the
Trustee has actual knowledge thereof or unless written notice of any event
which is in fact such a Default is received by the Trustee at the Corporate
Trust Office of the Trustee, and such notice references the Notes and this
Indenture.

 

(b)                                 Within 90 days after the occurrence of a
Default or an Event of Default, the Trustee shall mail to Holders of Notes, as
their names and addresses appear in the security register for the Notes, a
notice of the Default or Event of Default known to the Trustee, unless such
Default or Event of Default shall have been cured or waived. Except in the case
of a Default or Event of Default in payment of principal of, premium, if any,
or interest on any Note, the Trustee may withhold the notice if and so long as
a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes.

 

SECTION 7.06.                                                                 Reports by Trustee to Holders of
the Notes.

 

Within 60 days after each
May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee shall mail
to the Holders of the Notes a brief report dated as of such reporting date that
complies with TIA § 313(a) (but if no event described in TIA § 313(a)
has occurred within the twelve months preceding the reporting date, no report
need be transmitted). The Trustee also shall comply with TIA § 313(b)(2).
The Trustee shall also transmit by mail all reports as required by TIA
§ 313(c).

 

67

 

A copy of each report at the
time of its mailing to the Holders of Notes shall be mailed to the Company and
filed with the SEC and each stock exchange on which the Notes are listed in
accordance with TIA § 313(d). The Company shall promptly notify the
Trustee when the Notes are listed on any stock exchange.

 

SECTION 7.07.                                                                 Compensation and Indemnity.

 

The Company and the
Guarantors shall pay to the Trustee from time to time such compensation for its
acceptance of this Indenture and services hereunder as the parties shall agree
from time to time. The Trustee’s compensation shall not be limited by any law
on compensation of a trustee of an express trust. The Company and the Guarantors
shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

 

The Company and the
Guarantors shall indemnify the Trustee against any and all losses, liabilities
or expenses (including reasonable attorneys’ fees and expenses) incurred by it
arising out of or in connection with the acceptance or administration of its
duties under this Indenture, including the costs and expenses of enforcing this
Indenture against the Company and the Guarantors (including this
Section 7.07) and defending itself against any claim (whether asserted by
the Company and the Guarantors or any Holder or any other person) or liability
in connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such loss, liability or expense may be
attributable to its negligence or bad faith. The Trustee shall notify the
Company and the Guarantors promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company shall not relieve
the Company of its obligations hereunder. The Company shall defend the claim
and the Trustee shall cooperate in the defense. The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel. The Company and the Guarantors need not pay for any settlement made
without their consent, which consent shall not be unreasonably withheld.

 

The obligations of the
Company and the Guarantors under this Section 7.07 shall survive the
resignation or removal of the Trustee, the satisfaction and discharge and the
termination of this Indenture.

 

To secure the Company’s and
the Guarantors’ payment obligations in this Section, the Trustee shall have a
Lien prior to the Notes on all money or property held or collected by the
Trustee, except that held in trust to pay principal and interest on particular
Notes. Such Lien shall survive the resignation or removal of the Trustee, the
satisfaction and discharge and the termination of this Indenture.

 

In addition, and without
prejudice to the rights provided to the Trustee under any of the provisions of
this Indenture, when the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(f) or (g) hereof occurs, the
expenses and the compensation for the services (including the fees and expenses
of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

 

68

 

“Trustee” for purposes of
this Section shall include any predecessor Trustee and the Trustee in each
of its capacities hereunder and each agent, custodian and other person employed
to act hereunder; provided, however,
that the negligence, wilful misconduct or bad faith of any Trustee hereunder
shall not affect the rights of any other Trustee hereunder.

 

The Trustee shall comply
with the provisions of TIA § 313(b)(2) to the extent applicable.

 

SECTION 7.08.                                                                 Replacement of Trustee.

 

A resignation or removal of
the Trustee and appointment of a successor Trustee shall become effective only
upon the successor Trustee’s acceptance of appointment as provided in this
Section.

 

The Trustee may resign in
writing at any time and be discharged from the trust hereby created by so
notifying the Company. The Holders of Notes of a majority in principal amount
of the then outstanding Notes may remove the Trustee by so notifying the
Trustee and the Company in writing. The Company may remove the Trustee if:

 

(a)                                  the Trustee fails to comply with
Section 7.10 hereof,

 

(b)                                 the Trustee is adjudged a bankrupt or an
insolvent or an order for relief is entered with respect to the Trustee under
any Bankruptcy Law;

 

(c)                                  a custodian or public officer takes charge of
the Trustee or its property; or

 

(d)                                 the Trustee becomes incapable of acting.

 

If the Trustee resigns or is
removed or if a vacancy exists in the office of Trustee for any reason, the
Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount
of the then outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

 

If a successor Trustee does
not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company, or the Holders of Notes of at least
10% in principal amount of the then outstanding Notes may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

 

If the Trustee, after
written request by any Holder of a Note who has been a Holder of a Note for at
least six months, fails to comply with Section 7.10, such Holder of a Note
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

 

A successor Trustee shall
deliver a written acceptance of its appointment to the retiring Trustee and to
the Company. Thereupon, the resignation or removal of the retiring Trustee
shall become effective, and the successor Trustee shall have all the rights,
powers and duties of the Trustee under this Indenture. The successor Trustee
shall mail a

 

69

 

notice of its succession to Holders of the
Notes. The retiring Trustee shall promptly transfer all property held by it as
Trustee to the successor Trustee, provided
all sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.07 hereof. Notwithstanding replacement of the
Trustee pursuant to this Section 7.08, the Company’s obligations under
Section 7.07 hereof shall continue for the benefit of the retiring
Trustee.

 

SECTION 7.09.                                                                 Successor Trustee by Merger, etc.

 

If the Trustee consolidates,
merges or converts into, or transfers all or substantially all of its corporate
trust business to, another corporation, the successor corporation without any
further act shall be the successor Trustee.

 

SECTION 7.10.                                                                 Eligibility; Disqualification.

 

There shall at all times be
a Trustee hereunder that is a corporation organized and doing business under
the laws of the United States of America or of any State thereof, that is
authorized under such laws to exercise corporate trustee power, that is subject
to supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $100.0 million as set forth in its
most recent published annual report of condition.

 

This Indenture shall always
have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and
(5). The Trustee is subject to TIA § 310(b).

 

SECTION 7.11.                                                                 Preferential Collection of Claims
Against Company.

 

The Trustee is subject to
TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b). A Trustee who has resigned or been removed shall be subject to
TIA § 311 (a) to the extent indicated therein.

 

ARTICLE 8

 

LEGAL DEFEASANCE AND COVENANT DEFEASANCE SECTION

 

SECTION 8.01.                                                                 Option to Effect Legal Defeasance
or Covenant Defeasance.

 

The Company may, at the
option of its Board of Directors evidenced by a resolution set forth in an
Officers’ Certificate, at any time, elect to have either Section 8.02 or
8.03 hereof applied to all outstanding Notes upon compliance with the
conditions set forth below in this Article 8.

 

SECTION 8.02.                                                                 Legal Defeasance and Discharge.

 

Upon the Company’s exercise
under Section 8.01 hereof of the option applicable to this
Section 8.02, the Company shall, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes on the
date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose,
Legal Defeasance

 

70

 

means that the Company shall be deemed to
have paid and discharged the entire Indebtedness represented by the outstanding
Notes, which shall thereafter be deemed to be “outstanding” only for the
purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Notes and this Indenture (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall
survive until otherwise terminated or discharged hereunder: (a) the rights of
Holders of outstanding Notes to receive solely from the trust fund described in
Section 8.04 hereof, and as more fully set forth in such Section, payments
in respect of the principal amount of, premium, if any, and interest on such Notes
when such payments are due, (b) the Company’s obligations with respect to such
Notes under Article 2 and Section 4.02 hereof, (c) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s obligations in connection therewith and (d) the provisions of this
Article 8 with respect to Legal Defeasance. Subject to compliance with
this Article 8, the Company may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof.

 

SECTION 8.03.                                                                 Covenant Defeasance.

 

Upon the Company’s exercise
under Section 8.01 hereof of the option applicable to this
Section 8.03, the Company shall, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be released from its
obligations under the covenants contained in Sections 4.07, 4.08, 4.09, 4.10,
4.11, 4.12, 4.13, 4.15, 4.16, 4.17 and 4.18 hereof with respect to the
outstanding Notes on and after the date the conditions set forth in
Section 8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall
thereafter be deemed not “outstanding” for the purposes of any direction,
waiver, consent or declaration or act of Holders (and the consequences of any
thereof) in connection with such covenants, but shall continue to be deemed
“outstanding” for all other purposes hereunder (it being understood that such
Notes shall not be deemed outstanding for accounting purposes). For this
purpose, Covenant Defeasance means that, with respect to the outstanding Notes,
the Company may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 6.01 hereof,
but, except as specified above, the remainder of this Indenture and such Notes
shall be unaffected thereby. In addition, upon the Company’s exercise under
Section 8.01 hereof of the option applicable to this Section 8.03
hereof, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, Sections 6.01(d) and 6.01(e) hereof shall not constitute Events of
Default.

 

SECTION 8.04.                                                                 Conditions to Legal or Covenant
Defeasance.

 

The following shall be the
conditions to the application of either Section 8.02 or 8.03 hereof to the
outstanding Notes:

 

In order to exercise either
Legal Defeasance or Covenant Defeasance:

 

71

 

(a)                                  the Company must irrevocably deposit with the
Trustee, in trust, for the benefit of the Holders, cash in United States dollars,
non-callable Government Securities, or a combination thereof, in such amounts
as will be sufficient, in the opinion of a nationally recognized firm of
independent public accountants, to pay the principal amount at maturity of,
premium and interest on the outstanding Notes on the stated date for payment
thereof or on the applicable redemption date, as the case may be;

 

(b)                                 in the case of an election under
Section 8.02 hereof, the Company shall have delivered to the Trustee an
Opinion of Counsel in the United States of America reasonably acceptable to the
Trustee confirming that (A) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (B) since the date of
this Indenture, there has been a change in the applicable Federal income tax
law, in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders of the outstanding Notes will not
recognize income, gain or loss for Federal income tax purposes as a result of such
Legal Defeasance and will be subject to Federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such
Legal Defeasance had not occurred;

 

(c)                                  in the case of an election under
Section 8.03 hereof, the Company shall have delivered to the Trustee an
Opinion of Counsel in the United States of America reasonably acceptable to the
Trustee confirming that the Holders of the outstanding Notes will not recognize
income, gain or loss for Federal income tax purposes as a result of such
Covenant Defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such Covenant Defeasance had not occurred;

 

(d)                                 no Default or Event of Default shall have
occurred and be continuing on the date of such deposit (other than a Default or
Event of Default resulting from the incurrence of Indebtedness all or a portion
of the proceeds of which will be used to defease the Notes pursuant to this Article 8
concurrently with such incurrence and the grant of a Lien to secure such
Indebtedness) or insofar as Section 6.01 (f) or 6.01(g) hereof is
concerned, at any time in the period ending on the 91st day after the date of
deposit;

 

(e)                                  such Legal Defeasance or Covenant Defeasance
shall not result in a breach or violation of, or constitute a default under
this Indenture (other than a Default or an Event of Default resulting from the
borrowing of funds to be applied to such deposit and the grant of any Lien securing
such borrowing) or any other material agreement or instrument to which the
Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound;

 

(f)                                    the Company shall have delivered to the
Trustee an Opinion of Counsel (which may be subject to customary exceptions) to
the effect that (A) the trust funds will not be subject to any rights of
holders of Senior Debt including, without limitation, those arising under this
Indenture, and (B) after the 91st day following the deposit, the
trust funds will not be subject to the effect of the

 

72

 

preference provisions of
Section 547 of the United States Federal Bankruptcy Code;

 

(g)                                 the Company shall have delivered to the Trustee
an Officers’ Certificate stating that the deposit was not made by the Company
with the intent of preferring the Holders over any other creditors of the
Company or with the intent of defeating, hindering, delaying or defrauding any
other creditors of the Company or others;

 

(h)                                 the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for or relating to the Legal Defeasance or
the Covenant Defeasance have been complied with; and

 

(i)                                     the Company shall have paid or duly provided
for payment of all amounts then due to the Trustee pursuant to
Section 7.07 hereof.

 

Notwithstanding the
foregoing, the Opinion of Counsel required by clause (b) above with respect to a
Legal Defeasance need not be delivered if all Notes not therefor delivered to
the Trustee for cancellation (A) have become due and payable, or (B) will
become due and payable on the maturity date within one year under arrangements
satisfactory to the Trustee for giving of notice of redemption by the Trustee
in the name, and at the expense, of the Company.

 

SECTION 8.05.                      Deposited
Money and Government Securities to Be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to Section 8.06
hereof, all money and non-callable Government Securities (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04
hereof in respect of the outstanding Notes shall be held in trust and applied
by the Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Notes of all sums due and to become due thereon in respect
of principal amount, premium, if any, and interest, but such money need not be
segregated from other funds except to the extent required by law.

 

The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against the cash or non-callable Government Securities deposited
pursuant to Section 8.04 hereof or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of the outstanding Notes.

 

Anything in this
Article 8 to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon the request of the Company any money
or non-callable Government Securities held by it as provided in
Section 8.04 hereof which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under
Section 8.04(a) hereof), are in excess of the amount

 

73

 

thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

SECTION 8.06.                                                                 Satisfaction and Discharge.

 

This Indenture shall be
discharged and shall cease to be of further effect (except as to surviving
rights or registration of transfer or exchange of the Notes, as expressly
provided for in this Indenture) as to all outstanding Notes when (i) either (a)
all the Notes theretofore authenticated and delivered (except lost, stolen or
destroyed Notes which have been replaced or paid and Notes for whose payment
money has theretofore been deposited in trust or segregated and held in trust
by the Company and thereafter repaid to the Company or discharged from such
trust) have been delivered to the Trustee for cancellation or (b) all Notes not
theretofore delivered to the Trustee for cancellation have become due and
payable, pursuant to an optional redemption notice or otherwise, and the
Company has irrevocably deposited or caused to be deposited with the Trustee
funds in an amount sufficient to pay and discharge the entire Indebtedness on
the Notes not theretofore delivered to the Trustee for cancellation, for
principal of, premium, if any, and interest on the Notes to the date of deposit
together with irrevocable instructions from the Company directing the Trustee
to apply such funds to the payment thereof at maturity or redemption, as the
case may be; (ii) the Company has paid all other sums payable under this
Indenture by the Company; and (iii) the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel stating that all conditions precedent
under this Indenture relating to the satisfaction and discharge of this
Indenture have been complied with.

 

SECTION 8.07.                                                                 Repayment to Company.

 

Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal, premium, if any, or interest on any Note and
remaining unclaimed for two years after such principal and premium, if any, or
interest has become due and payable shall be paid to the Company on its request
or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Note shall thereafter, as a secured creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

 

SECTION 8.08.                                                                 Reinstatement.

 

If the Trustee or Paying
Agent is unable to apply any United States dollars or noncallable Government
Securities in accordance with Section 8.02 or 8.03 hereof, as the case may
be, by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Notes shall be revived and
reinstated

 

74

 

as though no deposit had occurred pursuant to
Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent
is permitted to apply all such money in accordance with Section 8.02 or
8.03 hereof, as the case may be; provided
however, that, if the Company makes any payment of principal of,
premium, if any, or interest on any Note following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money held by the Trustee or Paying
Agent.

 

SECTION 8.09.                                                                 Survival.

 

The Trustee’s rights under
this Article 8 shall survive termination of this Indenture.

 

ARTICLE 9

 

AMENDMENT, SUPPLEMENT AND WAIVER

 

SECTION 9.01.                                                                 Without Consent of Holders of Notes.

 

Notwithstanding
Section 9.02 of this Indenture, the Company, the Guarantors and the
Trustee may amend or supplement this Indenture, the Guarantees or the Notes
without the consent of any Holder of a Note:

 

(a)                                  to cure any ambiguity, defect or
inconsistency;

 

(b)                                 to provide for uncertificated Notes in
addition to or in place of certificated Notes or to alter the provisions of
Article 2 or the Appendix hereof relating to the form of the Notes
(including the related definitions) in a manner that does not materially
adversely affect any Holder;

 

(c)                                  to provide for the assumption of the
Company’s or a Guarantor’s obligations to the Holders of the Notes by a
successor to the Company or a Guarantor pursuant to Article 5 or
Article 11 hereof,

 

(d)                                 to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights hereunder of any Holder of the Notes;

 

(e)                                  to comply with requirements of the SEC in
order to effect or maintain the qualification of this Indenture under the TIA;

 

(f)                                    to provide for the issuance of Notes issued
after the Issue Date in accordance with the limitations set forth in this
Indenture; or

 

(g)                                 to allow any Guarantor to execute a
supplemental indenture and/or a Guarantee with respect to the Notes.

 

Upon the request of the
Company accompanied by a resolution of its Board of Directors authorizing the
execution of any such amended or supplemental Indenture, and upon receipt by
the Trustee of the documents described in Section 7.02

 

75

 

hereof, the Trustee shall join with the
Company and the Guarantors in the execution of any amended or supplemental
Indenture authorized or permitted by the terms of this Indenture and to make
any further appropriate agreements and stipulations that may be therein
contained, but the Trustee shall not be obligated to enter into such amended or
supplemental Indenture that affects its own rights, duties or immunities under
this Indenture or otherwise.

 

SECTION 9.02.                                                                 With Consent of Holders of Notes.

 

Except as provided below in
this Section 9.02, this Indenture (including Sections 3.09, 4.10 and 4.15
hereof), the Guarantees and the Notes may be amended or supplemented with the
consent of the Holders of at least a majority in principal amount of the Notes
then outstanding voting as a single class (including consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or
Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium, if any, or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance
with any provision of this Indenture, the Guarantees or the Notes may be waived
with the consent of the Holders of a majority in principal amount of the then
outstanding Notes voting as a single class (including consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes).  Section 2.08 hereof shall
determine which Notes are considered to be “outstanding” for purposes of this
Section 9.02.

 

Upon the request of the
Company accompanied by a resolution of its Board of Directors authorizing the
execution of any such amended or supplemental Indenture, and upon the filing
with the Trustee of evidence satisfactory to the Trustee of the consent of the
Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents
described in Section 7.02 hereof, the Trustee shall join with the Company
in the execution of such amended or supplemental Indenture unless such amended
or supplemental Indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such amended or
supplemental Indenture.

 

It shall not be necessary
for the consent of the Holders of Notes under this Section 9.02 to approve
the particular form of any proposed amendment or waiver, but it shall be
sufficient if such consent approves the substance thereof.

 

After an amendment,
supplement or waiver under this Section becomes effective, the Company
shall mail to the Holders of Notes affected thereby a notice briefly describing
the amendment, supplement or waiver. Any failure of the Company to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such amended or supplemental Indenture or waiver. Subject
to Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate
principal amount of the Notes then outstanding voting as a single class may
waive compliance in a particular instance by the Company with any provision of
this Indenture or the Notes. However, without the consent of each Holder
affected, an amendment or waiver under this Section 9.02 may not (with
respect to any Notes held by a non-consenting Holder):

 

76

 

(a)                                  reduce the principal amount of Notes whose
Holders must consent to an amendment, supplement or waiver;

 

(b)                                 reduce the principal of or change or have the
effect of changing the fixed maturity of any Note or alter or waive any of the
provisions with respect to the redemption of the Notes, other than provisions
relating to Sections 3.09, 4.10 or 4.15 hereof (with respect to which it may
not change without the consent of each Holder the date on which any Notes may
be subject to redemption or reduce the redemption price therefor);

 

(c)                                  reduce the rate of or change or have the
effect of changing the time for payment of interest, including defaulted
interest, on any Note;

 

(d)                                 waive a Default or Event of Default in the
payment of principal of or premium, if any, or interest on the Notes (except a
rescission of acceleration of the Notes by the Holders of at least a majority
in aggregate principal amount at maturity of the then outstanding Notes and a
waiver of the payment default that resulted from such acceleration);

 

(e)                                  make any Note payable in money other than
that stated in the Notes;

 

(f)                                    make any change in the provisions of this
Indenture permitting Holders of a majority in principal amount of Notes to
waive Defaults or Events of Default or the rights of Holders of Notes to
receive payments of principal of or interest on the Notes or to bring suit to
enforce such payment;

 

(g)                                 waive a redemption payment with respect to
any Note, other than a payment required by Section 3.09 or 4.10 hereof,

 

(h)                                 after the Company’s obligation to purchase
Notes arises thereunder, amend, change or modify in any material respect the
obligation of the Company to make and consummate a Change of Control Offer in
the event of a Change of Control or modify any of the provisions or definitions
with respect thereto after a Change of Control has occurred;

 

(i)                                     modify or change any provision of this
Indenture or the related definitions affecting the subordination or ranking of
the Notes or the Guarantees in a manner which adversely affects the Holders; or

 

(j)                                     make any change in the foregoing amendment
and waiver provisions.

 

An amendment under this
Section may not make any change that adversely affects the rights under
Article 10 or 12 hereof or any supplemental indenture to this Indenture
providing for a Guarantee of the Notes by a Restricted Subsidiary of the
Company of any holder of Senior Debt of the Company or of a Guarantor then
outstanding (including any such change of this paragraph of this Section 9.02)
unless the holders of such Senior Debt (or their Representative) consent to
such change.

 

77

 

SECTION 9.03.                                                                 Compliance with Trust Indenture Act.

 

Every amendment or
supplement to this Indenture or the Notes shall be set forth in a amended or
supplemental Indenture that complies with the TIA as then in effect.

 

SECTION 9.04.                                                                 Revocation and Effect of Consents.

 

Until an amendment,
supplement or waiver becomes effective, a consent to it by a Holder of a Note
is a continuing consent by the Holder of a Note and every subsequent Holder of
a Note or portion of a Note that evidences the same debt as the consenting
Holder’s Note, even if notation of the consent is not made on any Note.
However, any such Holder of a Note or subsequent Holder of a Note may revoke
the consent as to its Note if the Trustee receives written notice of revocation
before the date the waiver, supplement or amendment becomes effective. An
amendment, supplement or waiver becomes effective in accordance with its terms
and thereafter binds every Holder.

 

SECTION 9.05.                                                                 Notation on or Exchange of Notes.

 

The Trustee may place an
appropriate notation about an amendment, supplement or waiver on any Note
thereafter authenticated. The Company in exchange for all Notes may issue and
the Trustee shall, upon receipt of an Authentication Order, authenticate new
Notes that reflect the amendment, supplement or waiver.

 

Failure to make the
appropriate notation or issue a new Note shall not affect the validity and
effect of such amendment, supplement or waiver.

 

SECTION 9.06.                                                                 Trustee to Sign Amendments, etc.

 

The Trustee shall sign any
amended or supplemental Indenture authorized pursuant to this Article 9 if
the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. The Company may not sign an amendment
or supplemental Indenture until the Board of Directors approves it. In
executing any amended or supplemental indenture, the Trustee shall be entitled
to receive and (subject to Section 7.01 hereof) shall be fully protected
in relying upon, in addition to the documents required by Section 13.04
hereof, an Officer’s Certificate and an Opinion of Counsel stating that the
execution of such amended or supplemental indenture is authorized or permitted
by this Indenture.

 

ARTICLE 10

 

SUBORDINATION

 

SECTION 10.01.                                                           Agreement to Subordinate.

 

The Company agrees, and each
Holder by accepting a Note agrees, that the Indebtedness evidenced by the Notes
is subordinated in right of payment, to the extent and in the manner provided
in this Article 10, to the prior payment of all Senior Debt of the Company
and that the subordination is for the benefit of and enforceable by the holders
of such Senior Debt.  The Notes shall in
all respects rank pari passu with
all

 

78

 

other Senior Subordinated Debt of the Company
and only Indebtedness of the Company which is Senior Debt of the Company shall
rank senior to the Notes in accordance with the provisions set forth
herein.  All provisions of this
Article 10 shall be subject to Section 10.12.

 

SECTION 10.02.                                                           Liquidation,
Dissolution, Bankruptcy.

 

Upon any payment or
distribution of the assets of the Company to creditors upon a total or partial
liquidation or a total or partial dissolution of the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property:

 

(1) holders of Senior Debt
of the Company shall be entitled to receive payment in full in cash of such
Senior Debt before Holders shall be entitled to receive any payment; and

 

(2) until the Senior Debt of
the Company is paid in full in cash, any payment or distribution to which
Holders would be entitled but for this Article 10 shall be made to holders
of such Senior Debt as their interests may appear, except that Holders may
receive shares of stock and any debt securities that are subordinated to such
Senior Debt to at least the same extent as the Notes.

 

SECTION 10.03.                                                           Default on Senior Debt of the Company.

 

The Company shall not pay
the principal of, premium, if any, or interest on the Notes or make any deposit
pursuant to Section 8.04 and may not purchase, redeem or otherwise retire
any Notes (collectively, “pay the Notes”)
if either of the following (a “Payment
Default”) occurs (1) any Designated Senior Debt of the Company is
not paid in full in cash when due; or (2) any other default on Designated
Senior Debt of the Company occurs and the maturity of such Designated Senior
Debt is accelerated in accordance with its terms unless, in either case, the
Payment Default has been cured or waived and any such acceleration has been
rescinded or such Designated Senior Debt has been paid in full in cash; provided, however, that the Company shall
be entitled to pay the Notes without regard to the foregoing if the Company and
the Trustee receive written notice approving such payment from the
Representative of any Designated Senior Debt with respect to which the Payment
Default has occurred and is continuing. 
During the continuance of any default (other than a Payment Default)
with respect to any Designated Senior Debt of the Company pursuant to which the
maturity thereof may be accelerated immediately without further notice (except
such notice as may be required to effect such acceleration) or the expiration
of any applicable grace periods, the Company shall not pay the Notes for a
period (a “Payment Blockage Period”)
commencing upon the receipt by the Trustee of (with a copy to the Company)
written notice (a “Blockage Notice”)
of such default from the Representative of such Designated Senior Debt
specifying an election to effect a Payment Blockage Period and ending 179 days
thereafter.  The Payment Blockage Period
shall end earlier if such Payment Blockage Period is terminated (1) by written
notice to the Trustee and the Company from the Person or Persons who gave such
Blockage Notice; (2) because the default giving rise to such Blockage Notice is
cured, waived or otherwise no longer continuing; or (3) because such Designated
Senior Debt has been discharged or repaid in full in cash.  Notwithstanding the provisions described

 

79

 

in the immediately preceding two sentences
(but subject to the provisions contained in the first sentence of this
Section), unless the holders of such Designated Senior Debt or the
Representative of such Designated Senior Debt shall have accelerated the
maturity of such Designated Senior Debt, the Company shall be entitled to
resume payments on the Notes after termination of such Payment Blockage
Period.  The Notes shall not be subject
to more than one Payment Blockage Period in any consecutive 360-day period,
irrespective of the number of defaults with respect to Designated Senior Debt
of the Company during such period; provided,
however, that if any Blockage Notice within such 360-day period is
given by or on behalf of any holders of Designated Senior Debt of the Company
(other than the Bank Indebtedness), the Representative of the Bank Indebtedness
shall be entitled to give another Blockage Notice within such period; provided further, however, that in no
event shall the total number of days during which any Payment Blockage Period
or Periods is in effect exceed 179 days in the aggregate during any 360-day
consecutive period, and there must be 181 days during any 360-day consecutive
period during which no Payment Blockage Period is in effect.  For purposes of this Section, no default or
event of default which existed or was continuing on the date of the
commencement of any Payment Blockage Period with respect to the Designated
Senior Debt of the Company initiating such Payment Blockage Period shall be, or
be made, the basis of the commencement of a subsequent Payment Blockage Period
by the Representative of such Designated Senior Debt, whether or not within a
period of 360 consecutive days, unless such default or event of default shall
have been cured or waived for a period of not less than 90 consecutive days.

 

SECTION 10.04.                                                           Acceleration of Payment of Notes.

 

If payment of the Notes is
accelerated because of an Event of Default, the Company or the Trustee shall
promptly notify the holders of the Designated Senior Debt of the Company (or
their Representatives) of the acceleration.

 

SECTION 10.05.                                                           When Distribution Must Be Paid Over.

 

If a distribution is made to
Holders that because of this Article 10 should not have been made to them,
the Holders who receive the distribution shall hold it in trust for holders of
Senior Debt of the Company and pay it over to them as their interests may
appear.  If any Designated Senior Debt
of the Company is outstanding, the Company shall not pay the Notes until five
Business Days after the Representatives of all the issues of Designated Senior
Debt of the Company receive notice of such acceleration and, thereafter, shall
be entitled to pay the Notes only if this Article 10 otherwise permits
payment at that time.

 

SECTION 10.06.                                                           Subrogation.

 

After all Senior Debt of the
Company is paid in full and until the Notes are paid in full, Holders shall be
subrogated to the rights of holders of such Senior Debt to receive
distributions applicable to such Senior Debt. 
A distribution made under this Article 10 to holders of such Senior
Debt which otherwise would have been made to Holders is not, as between the
Company and Holders, a payment by the Company on such Senior Debt.

 

80

 

SECTION 10.07.                                                           Relative Rights.

 

This Article 10 defines
the relative rights of Holders and holders of Senior Debt of the Company.  Nothing in this Indenture shall:

 

(1) impair, as between the
Company and Holders, the obligation of the Company, which is absolute and
unconditional, to pay principal of and interest on the Notes in accordance with
their terms; or

 

(2) prevent the Trustee or
any Holder from exercising its available remedies upon a Default, subject to
the rights of holders of Senior Debt of the Company to receive distributions
otherwise payable to Holders.

 

SECTION 10.08.                                                           Subordination May Not Be
Impaired by Company.

 

No right of any holder of
Senior Debt of the Company to enforce the subordination of the Indebtedness
evidenced by the Notes shall be impaired by any act or failure to act by the
Company or by its failure to comply with this Indenture.

 

SECTION 10.09.                                                           Rights of Trustee and Paying Agent.

 

Notwithstanding
Section 10.03, the Trustee or Paying Agent shall continue to make payments
on the Notes and shall not be charged with knowledge of the existence of facts
that under this Article 10 would prohibit the making of any such payments
unless, not less than two Business Days prior to the date of such payment, a
Responsible Officer of the Trustee receives notice satisfactory to it that such
payments are prohibited by this Article 10.  The Company, a Representative or a holder of Senior Debt of the
Company shall be entitled to give the notice; provided,
however, that, if an issue of Senior Debt of the Company has a
Representative, only the Representative shall be entitled to give the notice.

 

The Trustee in its
individual or any other capacity shall be entitled to hold Senior Debt of the
Company with the same rights it would have if it were not Trustee.  The Registrar and the Paying Agent shall be
entitled to do the same with like rights. 
The Trustee shall be entitled to all the rights set forth in this
Article 10 with respect to any Senior Debt of the Company which may at any
time be held by it, to the same extent as any other holder of such Senior Debt;
and nothing in Article 7 shall deprive the Trustee of any of its rights as
such holder.  Notwithstanding anything
in this Article 10 to the contrary, all amounts owed to the Trustee
(including amounts owed pursuant to Section 7.07 hereof) in each of its
capacities hereunder shall not be subordinated to any Senior Debt of the
Company or otherwise.

 

SECTION 10.10.                                                           Distribution or Notice to
Representative.

 

Whenever any Person is to
make a distribution or give a notice to holders of Senior Debt of the Company,
such Person shall be entitled to make such distribution or give such notice to
their Representative (if any).

 

81

 

SECTION 10.11.                                                           Not To Prevent Events of Default or
Limit Right To Accelerate.

 

The failure to make a
payment pursuant to the Notes by reason of any provision in this
Article 10 shall not be construed as preventing the occurrence of a
Default.  Nothing in this
Article 10 shall have any effect on the right of the Holders or the
Trustee to accelerate the maturity of the Notes.

 

SECTION 10.12.                                                           Trust
Moneys Not Subordinated.

 

Notwithstanding anything
contained herein to the contrary, payments from money or the proceeds of
Government Securities held in trust under Article 8 hereof by the Trustee
for the payment of principal of and interest on the Notes shall not be
subordinated to the prior payment of any Senior Debt of the Company or subject
to the restrictions set forth in this Article 10 if the provisions of this
Article 10 were not violated at the time funds were deposited in trust
with the Trustee pursuant to Article 8 hereof, and none of the Holders
shall be obligated to pay over any such amount to the Company or any holder of
Senior Debt of the Company or any other creditor of the Company.

 

SECTION 10.13.                                                           Trustee Entitled To Rely.

 

Upon any payment or
distribution pursuant to this Article 10, the Trustee and the Holders
shall be entitled to rely (1) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in
Section 10.02 hereof are pending, (2) upon a certificate of the
liquidating trustee or agent or other Person making such payment or
distribution to the Trustee or to the Holders or (3) upon the Representatives
of Senior Debt of the Company for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of such
Senior Debt and other Indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article 10.  In the event that the Trustee determines, in
good faith, that evidence is required with respect to the right of any Person
as a holder of Senior Debt of the Company to participate in any payment or
distribution pursuant to this Article 10, the Trustee shall be entitled to
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of such Senior Debt held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution
and other facts pertinent to the rights of such Person under this
Article 10, and, if such evidence is not furnished, the Trustee shall be
entitled to defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.  The provisions of Sections 7.01 and 7.02 hereof shall be
applicable to all actions or omissions of actions by the Trustee pursuant to
this Article 10.

 

SECTION 10.14.                                                           Trustee To Effectuate Subordination.

 

Each Holder by accepting a
Note authorizes and directs the Trustee on his behalf to take such action as
may be necessary or appropriate to acknowledge or effectuate the subordination
between the Holders and the holders of Senior Debt of the Company as provided
in this Article 10 and appoints the Trustee as attorney-in-fact for any
and all such purposes.

 

82

 

SECTION 10.15.                                                           Trustee Not Fiduciary for
Holders  of Senior Debt of
the Company.

 

The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Debt of the Company
and shall not be liable to any such holders if it shall mistakenly pay over or
distribute to Holders or the Company or any other Person, money or assets to
which any holders of Senior Debt of the Company shall be entitled by virtue of
this Article 10 or otherwise.

 

SECTION 10.16.                                                           Reliance by Holders of Senior Debt of the
Company on Subordination Provisions.

 

Each Holder by accepting a
Note acknowledges and agrees that the foregoing subordination provisions are,
and are intended to be, an inducement and a consideration to each holder of any
Senior Debt of the Company, whether such Senior Debt was created or acquired
before or after the issuance of the Notes, to acquire and continue to hold, or
to continue to hold, such Senior Debt and such holder of such Senior Debt shall
be deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior Debt.

 

ARTICLE 11

 

GUARANTEES

 

SECTION 11.01.                                                           Guarantees.

 

Each Guarantor hereby
unconditionally and irrevocably guarantees, jointly and severally, to each
Holder and to the Trustee and its successors and assigns (a) the full and
punctual payment of principal of and interest on the Notes when due, whether at
maturity, by acceleration, by redemption or otherwise, and all other monetary
obligations of the Company under this Indenture and the Notes and (b) the full
and punctual performance within applicable grace periods of all other
obligations of the Company under this Indenture and the Notes (all the
foregoing being hereinafter collectively called the “Guaranteed Obligations”). 
Each Guarantor further agrees that the Guaranteed Obligations may be
extended or renewed, in whole or in part, without notice or further assent from
such Guarantor and that such Guarantor will remain bound under this
Article 11 notwithstanding any extension or renewal of any Guaranteed
Obligation.

 

Each Guarantor waives
presentation to, demand of, payment from and protest to the Company of any of
the Guaranteed Obligations and also waives notice of protest for
nonpayment.  Each Guarantor waives
notice of any default under the Notes or the Guaranteed Obligations.  The obligations of each Guarantor hereunder
shall not be affected by (a) the failure of any Holder or the Trustee to assert
any claim or demand or to enforce any right or remedy against the Company or
any other Person under this Indenture, the Notes or any other agreement or
otherwise; (b) any extension or renewal of any thereof; (c) any rescission,
waiver, amendment or modification of any of the terms or provisions of this
Indenture, the Notes or any other agreement; (d) the release of any security
held by any Holder or the Trustee for the Guaranteed Obligations or any of
them; (e) the failure of any Holder or the Trustee to exercise any right or
remedy against any

 

83

 

other guarantor of the Obligations; or (f)
except as set forth in Section 11.07, any change in the ownership of such
Guarantor.

 

Each Guarantor further
agrees that its Guarantee herein constitutes a guarantee of payment,
performance and compliance when due (and not a guarantee of collection) and
waives any right to require that any resort be had by any Holder or the Trustee
to any security held for payment of the Guaranteed Obligations.

 

Each Guarantee is, to the
extent and in the manner set forth in Article 12 hereof, subordinated and
subject in right of payment to the prior payment in full of the principal of
and premium, if any, and interest on all Senior Debt of the Guarantor giving
such Guarantee and each Guarantee is made subject to such provisions of this
Indenture.

 

Except as expressly set
forth in Sections 11.02 and 11.07 hereof, the obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Guaranteed Obligations or
otherwise.  Without limiting the
generality of the foregoing, the obligations of each Guarantor herein shall not
be discharged or impaired or otherwise affected by the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any remedy under this
Indenture, the Notes or any other agreement, by any waiver or modification of
any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of such Guarantor or would otherwise operate as a
discharge of such Guarantor as a matter of law or equity.

 

Each Guarantor further
agrees that its Guarantee herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
principal of or interest on any Guaranteed Obligation is rescinded or must
otherwise be restored by any Holder or the Trustee upon the bankruptcy or
reorganization of the Company or otherwise.

 

In furtherance of the
foregoing and not in limitation of any other right which any Holder or the
Trustee has at law or in equity against any Guarantor by virtue hereof, upon
the failure of the Company to pay the principal of or interest on any
Guaranteed Obligation when and as the same shall become due, whether at
maturity, by acceleration, by redemption or otherwise, or to perform or comply
with any other Guaranteed Obligation, each Guarantor hereby promises to and
shall, upon receipt of written demand by the Trustee, forthwith pay, or cause
to be paid, in cash, to the Holders or the Trustee an amount equal to the sum
of (1) the unpaid amount of such Guaranteed Obligations, (2) accrued and unpaid
interest on such Guaranteed Obligations (but only to the extent not prohibited
by law) and (3) all other monetary Guaranteed Obligations of the Company to the
Holders and the Trustee.

 

Each Guarantor agrees that
it shall not be entitled to any right of subrogation in respect of any
Guaranteed Obligations until payment in full of all Guaranteed Obligations and
all obligations to which the Guaranteed Obligations are 

 

84

 

subordinated as provided in
Article 12.  Each Guarantor further
agrees that, as between it, on the one hand, and the Holders and the Trustee,
on the other hand, (x) the maturity of the Guaranteed Obligations may be
accelerated as provided in Article 6 for the purposes of such Guarantor’s
Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guaranteed Obligations, and (y) in the
event of any declaration of acceleration of such Guaranteed Obligations as
provided in Article 6, such Guaranteed Obligations (whether or not due and
payable) shall forthwith become due and payable by such Guarantor for the
purposes of this Section.

 

Each Guarantor also agrees
to pay any and all costs and expenses (including reasonable attorneys’ fees)
incurred by the Trustee or any Holder in enforcing any rights under this
Section.

 

SECTION 11.02.                                                           Limitation on Liability.

 

Any term or provision of
this Indenture to the contrary notwithstanding, the maximum aggregate amount of
the Obligations guaranteed hereunder by any Guarantor that is a Restricted
Subsidiary of the Company shall not exceed the maximum amount that can be
hereby guaranteed without rendering this Indenture, as it relates to such
Guarantor, voidable under applicable law relating to fraudulent conveyance or
fraudulent transfer or similar laws affecting the rights of creditors
generally.

 

SECTION 11.03.                                                           Successors and Assigns.

 

This Article 11 shall
be binding upon each Guarantor and its successors and assigns and shall enure
to the benefit of the successors and assigns of the Trustee and the Holders
and, in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges conferred upon that party in this Indenture
and in the Notes shall automatically extend to and be vested in such transferee
or assignee, all subject to the terms and conditions of this Indenture.

 

SECTION 11.04.                                                           No Waiver.

 

Neither a failure nor a
delay on the part of either the Trustee or the Holders in exercising any right,
power or privilege under this Article 11 shall operate as a waiver
thereof, nor shall a single or partial exercise thereof preclude any other or
further exercise of any right, power or privilege.  The rights, remedies and benefits of the Trustee and the Holders
herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article 11
at law, in equity, by statute or otherwise.

 

SECTION 11.05.                                                           Modification.

 

No modification, amendment
or waiver of any provision of this Article 11, nor the consent to any
departure by any Guarantor therefrom, shall in any event be effective unless
the same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given.  No notice to or demand
on any Guarantor in any case shall entitle such

 

85

 

Guarantor to any other or further notice or
demand in the same, similar or other circumstances.

 

SECTION 11.06.                                                           Guarantors May Consolidate, etc.,
on Certain Terms.

 

(a)                                  Each Guarantor that is a Restricted
Subsidiary of the Company shall not, and the Company shall not permit any such
Guarantor to, consolidate or merge with or into, or sell, assign, transfer,
lease, convey or otherwise dispose of, in a single transaction or series of
related transactions, all or substantially all of its assets to any Person
unless:

 

(1)                                  (except in the case of such Guarantor that
has been disposed of in its entirety to another Person (other than to the
Company or an Affiliate of the Company), whether through a merger,
consolidation or sale of Capital Stock or through the sale of all or
substantially all of its assets (such sale constituting the disposition of such
Guarantor in its entirety), if in connection therewith the Company provides an
Officers’ Certificate to the Trustee to the effect that the Company will comply
with its obligations under Section 4.10 hereof in respect of such
disposition) the resulting, surviving or transferee Person (if not such
Guarantor) shall be a Person organized and validly existing under the laws of
the jurisdiction under which such Guarantor was organized or under the laws of
the United States of America, any State thereof or the District of Columbia,
and such Person shall expressly assume, by a supplemental indenture (in form
and substance satisfactory to the Trustee), executed and delivered to the
Trustee, all the obligations of such Guarantor, if any, under its Guarantee;

 

(2)                                  except in the case of a merger of such
Guarantor with or into the Company or another Restricted Subsidiary of the
Company that is a Guarantor and except in the case of a merger entered into
solely for the purpose of reincorporating such Guarantor in another
jurisdiction, immediately after giving effect to such transaction and the
assumption contemplated by the immediately preceding clause (a)(1) (including,
without limitation, giving effect to any Indebtedness and Acquired Indebtedness
incurred and any Lien granted in connection with or in respect of the
transaction), no Default or Event of Default shall have occurred and be
continuing; and

 

(3)                                  the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, sale, assignment, transfer, lease, conveyance or
other disposition and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture comply with the applicable
provisions of this Indenture and that all conditions precedent in the Indenture
relating to such transaction have been satisfied.

 

86

 

(b)                                 Parent shall not consolidate or merge with or
into, or sell, assign, transfer, lease or otherwise dispose of, in a single
transaction or series of related transactions, all or substantially all of its
assets to any Person unless:

 

(1)                                  the resulting, surviving or transferee Person
(if not Parent) shall be a Person organized and validly existing under the laws
of the United States of America, any State thereof or the District of Columbia,
and such Person shall expressly assume, by a supplemental indenture (in form
and substance satisfactory to the Trustee), executed and delivered to the
Trustee, all the obligations of Parent, if any, under its Guarantee;

 

(2)                                  except in the case of a merger entered into
solely for reincorporating Parent in another jurisdiction, immediately after
giving effect to such transaction and the assumption contemplated by the
immediately preceding clause (b)(1) (including, without limitation, giving
effect to any Indebtedness and Acquired Indebtedness incurred and any Lien
granted in connection with or in respect of the transaction), no Default or
Event of Default shall have occurred and be continuing; and

 

(3)                                  the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, sale, assignment, transfer, lease, conveyance or
other disposition and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture comply with the applicable
provisions of this Indenture and that all conditions precedent in the Indenture
relating to such transaction have been satisfied.

 

Notwithstanding anything in this
Section 11.06 (b) to the contrary, the merger of TD Acquisition with and
into TransDigm Holding Company on the Issue Date as described in the Merger
Agreement shall be permitted under this Indenture without complying with the
requirements of this Section 11.06 (b).

 

In case of any such consolidation,
merger, sale or conveyance and upon the assumption by the successor Person, by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the Guarantee of the Notes and the due and punctual
performance of all of the covenants and conditions of this Indenture to be
performed by the Guarantor, such successor Person shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. Such successor Person thereupon may cause to be signed
any or all of the Guarantees of the Notes issuable hereunder which theretofore
shall not have been signed by the Company and delivered to the Trustee. All the
Guarantees so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Guarantees theretofore and thereafter issued in
accordance with the terms of this Indenture as though all of such Guarantees
had been issued at the date of the execution hereof.

 

87

 

SECTION 11.07.                                                           Release of Guarantor.

 

Upon the sale (including any
sale pursuant to any exercise of remedies by a holder of Senior Debt of the
Company or of such Guarantor) or other disposition (including by way of
consolidation or merger) of a Guarantor that is a Restricted Subsidiary of the
Company or the sale or disposition of all or substantially all the assets of
such Guarantor (in each case other than a sale or disposition to the Company or
an Affiliate of the Company and if in connection therewith the Company provides
an Officers’ Certificate to the Trustee to the effect that the Company will
comply with its obligations under Section 4.10 hereof in respect of such
disposition), or upon designation of a Guarantor as an Unrestricted Subsidiary
pursuant to the terms of this Indenture, such Guarantor shall be deemed
released from all obligations under this Article 11 without any further
action required on the part of the Trustee or any Holder.  If the Company exercises its Legal
Defeasance option or its Covenant Defeasance option in accordance with the
provisions of Article 8 hereof or if its obligations under this Indenture
are discharged in accordance with Section 8.06 hereof, each Guarantor
shall be released from all obligations under this Article 11 without any
further action required on the part of the Trustee or any Holder.  At the request of the Company, the Trustee
shall execute and deliver an appropriate instrument evidencing the release of a
Guarantor pursuant to this Section 11.07.

 

SECTION 11.08.                                                           Contribution.

 

Each Guarantor that makes a
payment under its Guarantee shall be entitled upon payment in full of all
Guaranteed Obligations to a contribution from each other Guarantor in an amount
equal to such other Guarantor’s pro rata portion
of such payment based on the respective net assets of all the Guarantors at the
time of such payment determined in accordance with GAAP (for purposes hereof,
Parent’s net assets shall be those of all its Consolidated Subsidiaries other than
the Restricted Subsidiary of the Company that are Guarantors).

 

ARTICLE 12

 

SUBORDINATION OF GUARANTEES

 

SECTION 12.01.                                                           Agreement To Subordinate.

 

Each Guarantor agrees, and
each Holder by accepting a Note agrees, that the Indebtedness evidenced by such
Guarantor’s Guarantee is subordinated in right of payment, to the extent and in
the manner provided in this Article 12, to the prior payment of all Senior
Debt of such Guarantor and that the subordination is for the benefit of and
enforceable by the holders of such Senior Debt.  The Guaranteed Obligations of a Guarantor shall in all respects
rank pari passu with all other
Senior Subordinated Debt of such Guarantor and only Senior Debt such Guarantor
(including such Guarantor’s Guarantee of Senior Debt of the Company) shall rank
senior to the Guaranteed Obligations of such Guarantor in accordance with the
provisions set forth herein.

 

88

 

SECTION 12.02.                                                           Liquidation,
Dissolution, Bankruptcy.

 

Upon any payment or
distribution of the assets of any Guarantor to creditors upon a total or
partial liquidation or a total or partial dissolution of such Guarantor or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to such Guarantor or its property:

 

(1) holders of Senior Debt
of such Guarantor shall be entitled to receive payment in full in cash of such
Senior Debt before Holders shall be entitled to receive any payment pursuant to
the Guarantee of such Guarantor; and

 

(2) until the Senior Debt of
any Guarantor is paid in full in cash, any payment or distribution to which
Holders would be entitled but for this Article 12 shall be made to holders
of such Senior Debt as their interests may appear, except that Holders may
receive shares of stock and any debt securities of such Guarantor that are
subordinated to such Senior Debt to at least the same extent as its Guarantee.

 

SECTION 12.03.                                                           Default on Senior Debt of Guarantor.

 

No Guarantor shall make any
payment on its Guarantee or purchase, redeem or otherwise retire or defease any
Notes or other Guaranteed Obligations (collectively, “pay its Guarantee”) if either of the
following (a “Payment Default”)
occurs (1) any Designated Senior Debt of such Guarantor is not paid in full in
cash when due; or (2) any other default on Designated Senior Debt of such
Guarantor occurs and the maturity of such Designated Senior Debt is accelerated
in accordance with its terms; unless, in either case, the Payment Default has
been cured or waived and any such acceleration has been rescinded or such
Designated Senior Debt has been paid in full in cash; provided, however, that any Guarantor
shall be entitled to pay its Guarantee without regard to the foregoing if such
Guarantor and the Trustee receive written notice approving such payment from
the Representative of any Designated Senior Debt with respect to which the
Payment Default has occurred and is continuing.  During the continuance of any default (other than a Payment
Default) with respect to any Designated Senior Debt of such Guarantor pursuant
to which the maturity thereof may be accelerated immediately without further
notice (except such notice as may be required to effect such acceleration) or
the expiration of any applicable grace periods, such Guarantor shall not pay
its Guarantee for a period (a “Payment
Blockage Period”) commencing upon the receipt by the Trustee of
(with a copy to such Guarantor) written notice (a “Blockage Notice”) of such default from the Representative of
such Designated Senior Debt specifying an election to effect a Payment Blockage
Period and ending 179 days thereafter. 
The Payment Blockage Period shall end earlier if such Payment Blockage
Period is terminated (1) by written notice to the Trustee and such Guarantor
from the Person or Persons who gave such Blockage Notice; (2) because the
default giving rise to such Blockage Notice is cured, waived or otherwise no
longer continuing; or (3) because such Designated Senior Debt has been
discharged or repaid in full in cash. Notwithstanding the provisions described
in the immediately preceding two sentences (but subject to the provisions
contained in the first sentence of this Section), unless the holders of such
Designated Senior Debt giving such Payment Notice or the Representative of such
Designated Senior Debt shall have accelerated the maturity of such Designated
Senior Debt, any Guarantor shall be entitled to resume payments

 

89

 

pursuant to its Guarantee after termination
of such Payment Blockage Period.  No
Guarantor shall be subject to more than one Blockage Period in any consecutive
360-day  period, irrespective of the
number of defaults with respect to Designated Senior Debt of such Guarantor
during such period; provided, however,
that if any Blockage Notice within such 360-day period is given by or on behalf
of any holders of Designated Senior Debt of such Guarantor (other than the Bank
Indebtedness), the Representative of the Bank Indebtedness shall be entitled to
give another Blockage Notice within such period; provided further, however, that in no event shall the total
number of days during which any Payment Blockage Period or Periods is in effect
exceed 179 days in the aggregate during any 360-day consecutive period, and there
must be 181 days during any 360-day consecutive period during which no Payment
Blockage Period is in effect.  For
purposes of this Section, no default or event of default which existed or was
continuing on the date of the commencement of any Payment Blockage Period with
respect to the Designated Senior Debt of such Guarantor initiating such Payment
Blockage Period shall be, or be made, the basis of the commencement of a
subsequent Payment Blockage Period by the Representative of such Designated
Senior Debt, whether or not within a period of 360 consecutive days, unless
such default or event of default shall have been cured or waived for a period
of not less than 90 consecutive days.

 

SECTION 12.04.                                                           Demand for Payment.

 

If a demand for payment is
made on a Guarantor pursuant to Article 11 hereof, the Trustee shall
promptly notify the holders of the Designated Senior Debt of such Guarantor (or
their Representatives) of such demand.

 

SECTION 12.05.                                                           When Distribution Must Be Paid Over.

 

If a distribution is made to
Holders that because of this Article 12 should not have been made to them,
the Holders who receive the distribution shall hold it in trust for holders of
Senior Debt of the applicable Guarantor and pay it over to them or their
Representatives as their interests may appear. 
If any Designated Senior Debt of a Guarantor is outstanding, such
Guarantor shall not make a payment on its Guarantee until five Business Days
after the Representatives of all the issuers of Designated Senior Debt of such
Guarantor receive notice of such acceleration and, thereafter, shall be
entitled to pay the Notes only if this Article 12 otherwise permits
payment at that time.

 

SECTION 12.06.                                                           Subrogation.

 

After all Senior Debt of a
Guarantor is paid in full and until the Notes are paid in full, Holders shall
be subrogated to the rights of holders of such Senior Debt to receive
distributions applicable to Senior Debt of such Guarantor.  A distribution made under this
Article 12 to holders of such Senior Debt which otherwise would have been
made to Holders is not, as between the relevant Guarantor and Holders, a
payment by such Guarantor on such Senior Debt.

 

SECTION 12.07.                                                           Relative Rights.

 

This Article 12 defines
the relative rights of Holders and holders of Senior Debt of a Guarantor.  Nothing in this Indenture shall:

 

90

 

(1) impair, as between a
Guarantor and Holders, the obligation of such Guarantor, which is absolute and
unconditional, to pay its Guarantee to the extent set forth in Article 11;
or

 

(2) prevent the Trustee or
any Holder from exercising its available remedies upon a default by such
Guarantor under its Guarantee, subject to the rights of holders of Senior Debt
of such Guarantor to receive distributions otherwise payable to Holders.

 

SECTION 12.08.                                                           Subordination May Not Be
Impaired by Company.

 

No right of any holder of
Senior Debt of any Guarantor to enforce the subordination of the Guarantee of
such Guarantor shall be impaired by any act or failure to act by such Guarantor
or by its failure to comply with this Indenture.

 

SECTION 12.09.                                                           Rights of Trustee and Paying Agent.

 

Notwithstanding
Section 12.03, the Trustee or Paying Agent shall continue to make payments
on any Guarantee and shall not be charged with knowledge of the existence of
facts that would prohibit the making of any such payments unless, not less than
two Business Days prior to the date of such payment, a Responsible Officer of
the Trustee receives written notice satisfactory to it that such payments are
prohibited by this Article 12.  The
Company, the relevant Guarantor, a Representative or a holder of Senior Debt of
such Guarantor shall be entitled to give the notice; provided, however, that, if an issue of Senior Debt of
any  Guarantor has a Representative,
only the Representative shall be entitled to give the notice.

 

The Trustee in its
individual or any other capacity shall be entitled to hold Senior Debt of any
Guarantor with the same rights it would have if it were not the Trustee.  The Registrar and the Paying Agent may do
the same with like rights.  The Trustee
shall be entitled to all the rights set forth in this Article 12 with
respect to any Senior Debt of any Guarantor which may at any time be held by
it, to the same extent as any other holder of such Senior Debt; and nothing in
Article 7 shall deprive the Trustee of any of its rights as such
holder.  Notwithstanding anything in
this Article 12 to the contrary, all amounts owed to the Trustee
(including amounts owed pursuant to Section 7.07 hereof) in each of its
capacities hereunder shall not be subordinated to any Senior Debt of a
Guarantor or otherwise.

 

SECTION 12.10.                                                           Distribution or Notice to
Representative.

 

Whenever any Person is to
make a distribution or give a notice to holders of Senior Debt of any
Guarantor, such Person shall be entitled to make such distribution or give such
notice to their Representative (if any).

 

SECTION 12.11.                                                           Article 12
Not To Prevent Events of Default or Limit Right To Demand Payment.

 

The failure to make a payment
pursuant to a Guarantee by reason of any provision in this Article 12
shall not be construed as preventing the occurrence of a

 

91

 

Default. 
Nothing in this Article 12 shall have any effect on the right of
the Holders or the Trustee to make a demand for payment on any Guarantor
pursuant to its Guarantee.

 

SECTION 12.12.                                                           Trustee Entitled To Rely.

 

Upon any payment or
distribution pursuant to this Article 12, the Trustee and the Holders
shall be entitled to rely (1) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in
Section 12.02 are pending, (2) upon a certificate of the liquidating
trustee or agent or other Person making such payment or distribution to the
Trustee or to the Holders or (3) upon the Representatives for the holders of
Senior Debt of any Guarantor for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of such
Senior Debt and other indebtedness of such Guarantor, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article 12.  In the event that the Trustee determines, in
good faith, that evidence is required with respect to the right of any Person
as a holder of Senior Debt of any Guarantor to participate in any payment or
distribution pursuant to this Article 12, the Trustee shall be entitled to
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Debt of such Guarantor held by such Person,
the extent to which such Person is entitled to participate in such payment or
distribution and other facts pertinent to the rights of such Person under this
Article 12, and, if such evidence is not furnished, the Trustee shall be
entitled to defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.  The provisions of Sections 7.01 and 7.02 shall be applicable to
all actions or omissions of actions by the Trustee pursuant to this
Article 12.

 

SECTION 12.13.                                                           Trustee To Effectuate Subordination.

 

Each Holder by accepting a
Note authorizes and directs the Trustee on his behalf to take such action as
may be necessary or appropriate to acknowledge or effectuate the subordination
between the Holders and the holders of Senior Debt of any Guarantor as provided
in this Article 12 and appoints the Trustee as attorney-in-fact for any
and all such purposes.

 

SECTION 12.14.                                                           Trustee Not Fiduciary for Holders
of Senior Debt of Guarantor.

 

The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Debt of any Guarantor
and shall not be liable to any such holders if it shall mistakenly pay over or
distribute to Holders or the Company or any other Person, money or assets to
which any holders of such Senior Debt shall be entitled by virtue of this
Article 12 or otherwise.

 

SECTION 12.15.                                                           Reliance by Holders of Senior Debt
of Guarantors on Subordination Provisions.

 

Each Holder by accepting a
Note acknowledges and agrees that the foregoing subordination provisions are,
and are intended to be, an inducement and a consideration to each holder of any
Senior Debt of any Guarantor, whether such Senior Debt was created or acquired
before or after the issuance of the Notes, to acquire and

 

92

 

continue to hold, or to continue to hold,
such Senior Debt and such holder of Senior Debt shall be deemed conclusively to
have relied on such subordination provisions in acquiring and continuing to
hold, or in continuing to hold, such Senior Debt.

 

ARTICLE 13

 

MISCELLANEOUS

 

SECTION 13.01.                                                           Trust Indenture Act Controls.

 

If any provision of this
Indenture limits, qualifies or conflicts with the duties imposed by TIA
§ 318(c), the imposed duties shall control.

 

SECTION 13.02.                                                           Notices.

 

Any notice or communication
by the Company, any Guarantor or the Trustee to the others is duly given if in
writing and delivered in Person or mailed by first class mail (registered or
certified, return receipt requested), telex, telecopier or overnight air
courier guaranteeing next day delivery, to the others’ address:

 

If to the Company and/or any
Guarantor:

 

TransDigm Inc.

26380 Curtis Wright Parkway

Richmond Heights, Ohio 44143

Facsimile No.: (216) 289-4937

Attention:            Gregory Rufus,

Vice President and Chief Financial Officer

 

With copies to:

 

Warburg Pincus LLC

466 Lexington Avenue

New York, NY 10017

Facsimile No.: (212) 878-9100

Attention:            General Counsel

 

Willkie Farr & Gallagher

787 Seventh Avenue

New York, NY 10019

Facsimile No.: (212) 728-8111

Attention:            Steven J. Gartner, Esq.

 

If to the Trustee:

 

The Bank of New York

101 Barclay Street, 8W

New York, New York 10284

Facsimile No.: (212) 815-5707

Attention:            Joseph A. Lloret

 

93

 

With copies to:

 

Bryan Cave LLP

1290 Avenue of the Americas

New York, New York 10104

Facsimile No.: (212) 904-0500

Attention:            Robert E. Pedersen, Esq.

 

The Company, any Guarantor
or the Trustee, by notice to the others may designate additional or different
addresses for subsequent notices or communications.

 

All notices and
communications (other than those sent to Holders or the Trustee) shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged,
if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.  All notices and communications sent to the
Trustee shall be deemed to have been duly given when actually received.

 

Any notice or communication
to a Holder shall be mailed by first class mail, certified or registered,
return receipt requested, or by overnight air courier guaranteeing next day
delivery to its address shown on the register kept by the Registrar. Any notice
or communication shall also be so mailed to any Person described in TIA
§ 313(c), to the extent required by the TIA. Failure to mail a notice or
communication to a Holder or any defect in it shall not affect its sufficiency
with respect to other Holders.

 

If a notice or communication
is mailed in the manner provided above within the time prescribed, it is duly
given, whether or not the addressee receives it.

 

If the Company mails a
notice or communication to Holders, it shall mail a copy to the Trustee, each
Paying Agent and the Registrar at the same time.

 

SECTION 13.03.                                                           Communication by Holders of Notes
with Other Holders of Notes.

 

Holders may communicate
pursuant to TIA § 312(b) with other Holders with respect to their rights
under this Indenture or the Notes. The Company, the Trustee, the Registrar and
anyone else shall have the protection of TIA § 312(c).

 

SECTION 13.04.                                                           Certificate and Opinion as to
Conditions Precedent.

 

Upon any request or
application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

 

(a)                                  an Officers’ Certificate in form and
substance reasonably satisfactory to the Trustee (which shall include the
statements set forth in Section 13.05 hereof) stating that, in the opinion
of the signers, all conditions precedent and covenants, if any, provided for in
this Indenture relating to the proposed action have been satisfied; and

 

94

 

(b)                                 an Opinion of Counsel in form and substance
reasonably satisfactory to the Trustee (which shall include the statements set
forth in Section 13.05 hereof) stating that, in the opinion of such
counsel, all such conditions precedent and covenants have been satisfied.

 

SECTION 13.05.                                                           Statements Required in
Certificate or Opinion.

 

Each certificate or opinion
with respect to compliance with a condition or covenant provided for in this
Indenture (other than a certificate provided pursuant to TIA § 314(a)(4))
shall comply with the provisions of TIA § 314(e) and shall include:

 

(a)                                  a statement that the Person making such
certificate or opinion has read such covenant or condition;

 

(b)                                 a brief statement as to the nature and scope
of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;

 

(c)                                  a statement that, in the opinion of such
Person, he or she has or they have made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been satisfied; and

 

(d)                                 a statement as to whether or not, in the
opinion of such Person, such condition or covenant has been satisfied.

 

SECTION 13.06.                                                           Rules by Trustee and Agents.

 

The Trustee may make
reasonable rules for action by or at a meeting of Holders. The Registrar or
Paying Agent may make reasonable rules and set reasonable requirements for its
functions.

 

SECTION 13.07.                                                           No Personal Liability of
Directors, Officers, Employees and Stockholders.

 

No past, present or future
director, officer, employee, incorporator or stockholder of Parent, the Company
or any Subsidiary of the Company (other than the Company, Parent or any
Subsidiary of the Company that is a Guarantor), as such, shall have any
liability for any obligations of the Company, Parent or any Subsidiary of the
Company under the Notes, the Guarantees, this Indenture or for any claim based
on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and
releases all such liability.  The waiver
and release are part of the consideration for issuance of the Notes.

 

SECTION 13.08.                                                           Governing Law.

 

THE INTERNAL LAW OF THE
STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE
NOTES AND THE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES

 

95

 

OF CONFLICTS OF LAW TO THE EXTENT THAT THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

SECTION 13.09.                                                           No Adverse Interpretation of
Other Agreements.

 

This Indenture may not be
used to interpret any other indenture, loan or debt agreement of the Company or
its Subsidiaries or of any other Person. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

 

SECTION 13.10.                                                           Successors.

 

All agreements of the
Company and the Guarantors in this Indenture and the Notes shall bind their
respective successors. All agreements of the Trustee in this Indenture shall
bind its successors.

 

SECTION 13.11.                                                           Severability.

 

In case any provision in
this Indenture or in the Notes shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

SECTION 13.12.                                                           Counterpart Originals.

 

The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement.

 

SECTION 13.13.                                                           Table of Contents, Headings, etc.

 

The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part of this Indenture and shall in no way modify or restrict any
of the terms or provisions hereof.

 

96

 

IN WITNESS WHEREOF, the
parties have caused this Indenture to be duly executed as of the date first
written above.

 

	
   

  	
  TD FUNDING CORPORATION,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Vice President
  & Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TD ACQUISITION
  CORPORATION,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Vice President
  & Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ZMP, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
   

  	
  Title: Chairman/Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADAMS RITE AEROSPACE,
  INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: Chairman/Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHRISTIE ELECTRIC CORP.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: Chairman/Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MARATHON POWER
  TECHNOLOGIES

  COMPANY,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: Chairman/Chief
  Executive Officer

  

 

97

 

	
   

  	
  CHAMPION AEROSPACE, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  
	
   

  	
   

  	
  Name: W. Nicholas Howley

  
	
   

  	
  Title: Chairman/Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  as Trustee,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Cynthia J. Chaney

  	
   

  
	
   

  	
   

  	
  Name: Cynthia J. Chaney

  
	
   

  	
   

  	
  Title: Vice President

  
					

 

98

 

	
  The undersigned hereby
  acknowledges and agrees that, upon the effectiveness of the merger of TD
  Funding Corporation with and into TransDigm Inc. with TransDigm Inc.
  continuing as the surviving corporation, it will succeed by operation of law
  to all of the rights and obligations of TD Funding Corporation set forth
  herein and that all references herein to the “Company” shall thereupon be
  deemed to be references to the undersigned.

  	
   

  
	
   

  	
   

  
	
  TRANSDIGM INC.,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  	
   

  
	
   

  	
  Title: President &
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  The undersigned hereby
  acknowledges and agrees that, upon the effectiveness of the merger of TD
  Acquisition Corporation with and into TransDigm Holding Company with
  TransDigm Holding Company continuing as the surviving corporation, it will
  succeed by operation of law to all of the rights and obligations of TD
  Acquisition Corporation set forth herein and that all references herein to
  “Guarantors” shall thereupon be deemed to include the undersigned.

  	
   

  
	
   

  	
   

  
	
  TRANSDIGM HOLDING COMPANY,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
  /s/ W. Nicholas Howley

  	
   

  	
   

  
	
   

  	
  Name: W. Nicholas Howley

  	
   

  
	
   

  	
  Title: President &
  Chief Executive Officer

  	
   

  
						

 

99

 

RULE 144A/REGULATION
S APPENDIX

 

PROVISIONS
RELATING TO INITIAL SECURITIES,

PRIVATE EXCHANGE SECURITIES

AND EXCHANGE SECURITIES

 

1. Definitions

 

1.1  Definitions

 

For the purposes of this
Appendix the following terms shall have the meanings indicated below:

 

“Definitive Note” means a certificated Initial Note or Exchange Note or Private Exchange
Note bearing, if required, the restricted securities legend set forth in
Section 2.3(e).

 

“Depository” means The Depository Trust Company, its nominees and their respective
successors.

 

“Distribution Compliance Period”, with respect to any Notes, means the period
of 40 consecutive days beginning on and including the later of (i) the day on
which such Notes are first offered to Persons other than distributors (as
defined in Regulation S under the Securities Act) in reliance on Regulation S
and (ii) the issue date with respect to such Notes.

 

“Exchange Notes” means (1) the 83/8% Senior Subordinated Notes
Due 2011 issued pursuant to the Indenture in connection with the Registered
Exchange Offer pursuant to a Registration Rights Agreement, and (2) Additional
Notes, if any, issued pursuant to a registration statement filed with the SEC
under the Securities Act.

 

“Initial Purchasers” means (1) with respect to the Initial Notes
issued on the Issue Date, Credit Suisse First Boston LLC, Banc of America
Securities LLC and UBS Securities LLC, and (2) with respect to each issuance of
Additional Notes, the Persons purchasing or underwriting such Additional Notes
under the related Purchase Agreement.

 

“Initial Notes” means (1) $400,000,000 aggregate principal amount of 83/8%
Senior Subordinated Notes due 2011 issued on the Issue Date, and (2) Additional
Notes, if any, issued in a transaction exempt from the registration
requirements of the Securities Act.

 

“Private Exchange” means the offer by the Company, pursuant to the Registration Rights
Agreement, to the Initial Purchasers to issue and deliver to each Initial
Purchaser, in exchange for the Initial Notes held by the Initial Purchaser as
part of its initial distribution, a like aggregate principal amount of Private
Exchange Notes.

 

“Private Exchange Notes” means any 83/8% Senior
Subordinated Notes Due 2011 issued in connection with a Private Exchange.

 

 

“Purchase Agreement” means with (1) respect to the Initial Notes
issued on the Issue Date, the Purchase Agreement dated July 15, 2003,
among the Company, TD Acquisition and the Initial Purchasers, and (2) with
respect to each issuance of Additional Notes, the purchase agreement or underwriting
agreement among the Company and the Persons purchasing or underwriting such
Additional Notes.

 

“QIB”
means a “qualified institutional buyer” as defined in Rule 144A.

 

“Registered Exchange Offer” means the offer by the Company, pursuant to
a Registration Rights Agreement, to certain Holders of Initial Notes, to issue
and deliver to such Holders, in exchange for the Initial Notes, a like
aggregate principal amount of Exchange Notes registered under the Securities
Act.

 

“Registration Rights Agreement” means (1) with respect to the Initial Notes
issued on the Issue Date, the Registration Rights Agreement dated July 22,
2003, among the Company, the Guarantors and the Initial Purchasers, and (2)
with respect to each issuance of Additional Notes issued in a transaction
exempt from the registration requirements of the Securities Act, the
registration rights agreement, if any, among the Company, the Guarantors and
the Persons purchasing such Additional Notes under the related Purchase
Agreement.

 

“Note Custodian” means the Trustee, as custodian with respect to the Notes in global
form, or any successor entity thereto.

 

“Notes” means the Initial Notes, the Exchange Notes and the Private Exchange
Notes, treated as a single class.

 

“Securities Custodian” means the custodian with respect to a Global
Note (as appointed by the Depository), or any successor Person thereto and
shall initially be the Trustee.

 

“Shelf Registration Statement” means the registration statement issued by
the Company in connection with the offer and sale of Initial Notes or Private
Exchange Notes pursuant to a Registration Rights Agreement.

 

“Transfer Restricted Notes” means Notes that bear or are required to
bear the legend set forth in Section 2.3(e) hereof.

 

2

 

1.2  Other Definitions

 

	
  Term

  	
   

  	
  Defined

  in Section:

  
	
   

  	
   

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.1(b)

  
	
  “Global Notes

  	
   

  	
  2.1(a)

  
	
  “Permanent Regulation S
  Global Note”

  	
   

  	
  2.1(a)

  
	
  “Regulation S”

  	
   

  	
  2.1(a)

  
	
  “Regulation S Global Notes

  	
   

  	
  2.1(a)

  
	
  “Rule 144A”

  	
   

  	
  2.1(a)

  
	
  “Rule 144A Global Note”

  	
   

  	
  2.1(a)

  
	
  “Temporary Regulation S
  Global Note”

  	
   

  	
  2.1(a)

  

 

2.                                       The Notes.

 

2.1  (a)  Form
and Dating.  The Initial Notes will
be offered and sold by the Company pursuant to a Purchase Agreement.  The Initial Notes will be resold initially
only to (i) QIBs in reliance on Rule 144A under the Securities Act (“Rule 144A”) and (ii) Persons other than
U.S. Persons (as defined in Regulation S) in reliance on Regulation S under the
Securities Act (“Regulation S”).  Initial Notes may thereafter be transferred
to, among others, QIBs and purchasers in reliance on Regulation S, in each
case, subject to the restrictions on transfer set forth herein.  Initial Notes initially resold pursuant to
Rule 144A shall be issued initially in the form of one or more permanent global
Notes in definitive, fully registered form (collectively, the “Rule 144A Global Note”) and Initial Notes
initially resold pursuant to Regulation S shall be issued initially in the form
of one or more temporary global notes in fully registered form (collectively,
the “Temporary Regulation S Global Note”),
in each case without interest coupons and with the global notes legend and
restricted notes legend set forth in Exhibit A hereto, which shall be deposited
on behalf of the purchasers of the Initial Notes represented thereby with the
Notes Custodian, and registered in the name of the Depository or a nominee of
the Depository, duly executed by the Company and authenticated by the Trustee
as provided in this Indenture.  Except
as set forth in this Section 2.1(a), beneficial ownership interests in the
Temporary Regulation S Global Note (x) will not be exchangeable for interests
in the Rule 144A Global Note, a permanent global note (the “Permanent Regulation S Global Note” and,
together with the Temporary Regulation S Global Notes, the “Regulation S Global Notes”), or  any other Note prior to the expiration of
the Distribution Compliance Period and (y) then, after the expiration of the
Distribution Compliance Period, may be exchanged for interests in a Rule 144A
Global Note or the Permanent Regulation S Global Note only upon certification
that beneficial ownership interests in such Temporary Regulation S Global Note
are owned either by non-U.S. persons or U.S. persons who purchased such
interests in a transaction that did not require registration under the
Securities Act.

 

Beneficial interests in
Temporary Regulation S Global Notes may be exchanged for interests in Rule 144A
Global Notes if (1) such exchange occurs in connection with a transfer of Securities
in compliance with Rule 144A, and (2) the transferor of the beneficial interest
in the Temporary Regulation S Global Note first delivers to the Trustee a
written certificate (in a form satisfactory to the Trustee) to the

 

3

 

effect that the beneficial interest in the
Temporary Regulation S Global Note is being transferred to a Person (a) who the
transferor reasonably believes to be a QIB, (b) purchasing for its own account
or the account of a QIB in a transaction meeting the requirements of
Rule 144A, and (c) in accordance with all applicable securities laws of
the States of the United States and other jurisdictions.

 

Beneficial interest in a
Rule 144A Global Note may be transferred to a Person who takes delivery in the
form of an interest in a Regulation S Global Note, whether before or after the
expiration of the Distribution Compliance Period, only if the transferor first
delivers to the Trustee a written certificate (in the form provided n the Indenture)
to the effect that such transfer is being made in accordance with Rule 903 or
904 of Regulation S or Rule 144 (if applicable).

 

The Rule 144A Global
Note, the Temporary Regulation S Global Note and the Permanent Regulation S
Global Note are collectively referred to herein as “Global Notes”.  The
aggregate principal amount of the Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee and
the Depository and the Notes Custodian as hereinafter provided.

 

(b)  Book-Entry Provisions.  This Section 2.1(b) shall apply only to
a Global Note deposited with or on behalf of the Depository.

 

The Company shall execute
and the Trustee shall, in accordance with this Section 2.1(b),
authenticate and deliver initially one or more Global Notes that (a) shall be
registered in the name of the Depository for such Global Note or Global Notes
or the nominee of such Depository and (b) shall be delivered by the Trustee to
such Depository or pursuant to such Depository’s instructions or held by the
Notes Custodian.

 

Members of, or participants
in, the Depository (“Agent Members”)
shall have no rights under this Indenture with respect to any Global Note held
on their behalf by the Depository or by the Notes Custodian or under such
Global Note, and the Company, the Trustee and any agent of the Company or the
Trustee shall be entitled to treat the Depository as the absolute owner of such
Global Note for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the
Depository or impair, as between the Depository and its Agent Members, the
operation of customary practices of such Depository governing the exercise of
the rights of a holder of a beneficial interest in any Global Note.

 

(c)  Certificated Notes.  Except as provided in this Section 2.1
or Sections 2.3 or 2.4, owners of beneficial interests in Global Notes shall
not be entitled to receive physical delivery of Definitive Notes.

 

2.2  Authentication.  The Trustee shall authenticate and
deliver:  (1) on the Issue Date, an
aggregate principal amount of $400.0 million 83/8% Senior
Subordinated Notes Due 2011; and (2) any Additional Notes for an original issue
in an aggregate principal amount specified in the written order of the Company
pursuant to Section 2.02 of the Indenture and (3) Exchange Notes or
Private Exchange Notes for issue only in a Registered Exchange Offer or a
Private Exchange, respectively, pursuant to a Registration Rights Agreement,
for a like principal amount of Initial Notes, in each case

 

4

 

upon a written order of the Company signed by
two Officers.  Such order shall specify
the amount of the Notes to be authenticated and the date on which the original
issue of Notes is to be authenticated and, in the case of any issuance of
Additional Notes pursuant to Section 2.14 of the Indenture, shall certify
that such issuance is in compliance with Section 4.09 of the Indenture.

 

2.3  Transfer and Exchange.  (a)  Transfer
and Exchange of Definitive Notes. 
When Definitive Notes are presented to a Registrar with a request:

 

(x)
to register the transfer of such Definitive Notes; or

 

(y)
to exchange such Definitive Notes for an equal principal amount of Definitive
Notes of other authorized denominations,

 

the Registrar shall register the transfer or
make the exchange as requested if its reasonable requirements for such
transaction are met; provided, however,
that the Definitive Notes surrendered for transfer or exchange:

 

(i)
shall be duly endorsed or accompanied by a written instrument of transfer in
form reasonably satisfactory to the Company and the Registrar, duly executed by
the Holder thereof or its attorney duly authorized in writing; and

 

(ii)
if such Definitive Notes are required to bear a restricted securities legend,
they are being transferred or exchanged pursuant to an effective registration
statement under the Securities Act, pursuant to Section 2.3(b) or pursuant
to clause (A), (B) or (C) below, and are accompanied by the following
additional information and documents, as applicable:

 

(A)
if such Definitive Notes are being delivered to the Registrar by a Holder for
registration in the name of such Holder, without transfer, a certification from
such Holder to that effect; or

 

(B)
if such Definitive Notes are being transferred to the Company, a certification
to that effect; or

 

(C)
if such Definitive Notes are being transferred (x) pursuant to an exemption
from registration in accordance with Rule 144A, Regulation S or Rule 144 under
the Securities Act; or (y) in reliance upon another exemption from the
requirements of the Securities Act: (x) a certification to that effect (in the
form set forth on the reverse of the Note) and (y) if the Company so requests,
an opinion of counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the legend set forth in
Section 2.3(e)(i).

 

(b)  Restrictions on Transfer of a Definitive
Note for a Beneficial Interest in a Global Security.  A Definitive Note may not be exchanged for a
beneficial interest in a Rule 144A Global Security or a Permanent Regulation S
Global Note except upon satisfaction of the requirements set forth below.  Upon receipt by the Trustee of a Definitive
Note, duly endorsed or accompanied by appropriate instruments of transfer, in
form satisfactory to the Trustee, together with:

 

5

 

(i)
certification, in the form set forth on the reverse of the Note, that such
Definitive Note is either (A) being transferred to a QIB in accordance with
Rule 144A or (B) is being transferred after expiration of the Distribution
Compliance Period by a Person who initially purchased such Note in reliance on
Regulation S to a buyer who elects to hold its interest in such Note in the
form of a beneficial interest in the Permanent Regulation S Global Note; and

 

(ii)
written instructions directing the Trustee to make, or to direct the Notes
Custodian to make, an adjustment on its books and records with respect to such
Rule 144A Global Note (in the case of a transfer pursuant to clause (b)(i)(A))
or Permanent Regulation S Note (in the case of a transfer pursuant to clause
(b)(i)(B)) to reflect an increase in the aggregate principal amount of the
Notes represented by the Rule 144A Global Note or Permanent Regulation S Global
Note, as applicable, such instructions to contain information regarding the
Depository account to be credited with such increase,

 

then the Trustee shall cancel such Definitive
Note and cause, or direct the custodian for the Notes to cause, in accordance
with the standing instructions and procedures existing between the Depository
and the custodian for the Notes, the aggregate principal amount of Notes
represented by the Rule 144A Global Note or Permanent Regulation S Global Note,
as applicable, to be increased by the aggregate principal amount of the
Definitive Note to be exchanged and shall credit or cause to be credited to the
account of the Person specified in such instructions a beneficial interest in
the Rule 144A Global Note or Permanent Regulation S Global Note, as applicable,
equal to the principal amount of the Definitive Note so canceled.  If no Rule 144A Global Notes or Permanent
Regulation S Global Notes, as applicable, are then outstanding, the Company
shall issue and the Trustee shall authenticate, upon written order of the
Company in the form of an Officers’ Certificate, a new Rule 144A Global Note or
Permanent Regulation S Global Note, as applicable, in the appropriate principal
amount.

 

(c)  Transfer and Exchange of Global Notes.  (i) 
The transfer and exchange of Global Notes or beneficial interests
therein shall be effected through the Depository, in accordance with this
Indenture (including applicable restrictions on transfer set forth herein, if
any) and the procedures of the Depository therefor.  A transferor of a beneficial interest in a Global Note shall
deliver to the Registrar a written order given in accordance with the
Depository’s procedures containing information regarding the participant
account of the Depository to be credited with a beneficial interest in the
Global Note.  The Registrar shall, in
accordance with such instructions, instruct the Depository to credit to the
account of the Person specified in such instructions a beneficial interest in
the Global Note and to debit the account of the Person making the transfer the
beneficial interest in the Global Note being transferred.

 

(ii)  If the proposed transfer is a transfer of a
beneficial interest in one Global Note to a beneficial interest in another
Global Note, the Registrar shall reflect on its books and records the date and
an increase in the principal amount of the Global Note to which such interest
is being transferred in an amount equal to the principal amount of the interest
to be so transferred, and the Registrar shall reflect on its books and records
the date and a corresponding decrease in the principal amount of the Global
Note from which such interest is being transferred.

 

6

 

(iii)  Notwithstanding any other provisions of this
Appendix (other than the provisions set forth in Section 2.4), a Global
Note may not be transferred as a whole except by the Depository to a nominee of
the Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository.

 

(iv)  In the event that a Global Note is exchanged
for Definitive Notes pursuant to Section 2.4 of this Appendix prior to the
consummation of a Registered Exchange Offer or the effectiveness of a Shelf
Registration Statement with respect to such Notes, such Notes may be exchanged
only in accordance with such procedures as are substantially consistent with
the provisions of this Section 2.3 (including the certification requirements
set forth on the reverse of the Initial Notes intended to ensure that such
transfers comply with Rule 144A or Regulation S, as the case may be) and such
other procedures as may from time to time be adopted by the Company.

 

(d)  Restrictions on Transfer of Temporary
Regulation S Global Notes.  During
the Distribution Compliance Period, beneficial ownership interests in Temporary
Regulation S Global Notes may only be sold, pledged or transferred only (i) to
the Company, (ii) in an offshore transaction in accordance with Regulation S
(other than a transaction resulting in an exchange for interest in a Permanent
Regulation S Global Note), or (iii) pursuant to an effective registration
statement under the Act, in each case in accordance with any applicable securities
laws of any state of the United States.

 

(e)  Legend.

 

(i)  Except as permitted by the following
paragraphs (ii), (iii) and (iv), each Note certificate evidencing the Global
Notes (and all Notes issued in exchange therefor or in substitution thereof)
shall bear a legend in substantially the following form:

 

THIS
NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM.  EACH PURCHASER OF THIS NOTE
IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED
BY RULE 144A THEREUNDER.

 

THE
HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE
COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER

 

7

 

THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (IV) PURSUANT TO EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (V) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, OR (VI)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN
EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF
THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

Each Definitive Note will
also bear the following additional legend:

 

IN
CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT
MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS.

 

(ii)  Upon any sale or transfer of
a Transfer Restricted Note (including any Transfer Restricted Note represented
by a Global Note) pursuant to Rule 144 under the Securities Act, the Registrar
shall permit the transferee thereof to exchange such Transfer Restricted Note
for a certificated Note that does not bear the legend set forth above and
rescind any restriction on the transfer of such Transfer Restricted Note, if
the transferor thereof certifies in writing to the Registrar that such sale or
transfer was made in reliance on Rule 144 (such certification to be in the form
set forth on the reverse of the Note).

 

(iii)  After a transfer of any Initial Notes or
Private Exchange Notes pursuant to and during the period of the effectiveness
of a Shelf Registration Statement with respect to such Initial Notes or Private
Exchange Notes, as the case may be, all requirements pertaining to legends on
such Initial Note or such Private Exchange Note will cease to apply, the
requirements requiring any such Initial Note or such Private Exchange Note issued
to certain Holders be issued in global form will cease to apply, and a
certificated Initial Note or Private Exchange Note or an Initial Note or
Private Exchange Note in global form, in each case without restrictive transfer
legends, will be available to the transferee of the Holder of such Initial
Notes or Private Exchange Notes upon exchange of such transferring Holder’s
certificated Initial Note or Private Exchange Note or appropriate directions to
transfer such Holder’s interest in the Global Note, as applicable.

 

(iv)  Upon the consummation of a Registered
Exchange Offer with respect to the Initial Notes, all requirements pertaining
to such Initial Notes that Initial

 

8

 

Notes issued to certain
Holders be issued in global form will still apply with respect to Holders of
such Initial Notes that do not exchange their Initial Notes, and Exchange Notes
in certificated or global form, in each case without the restrictive securities
legend set forth in Exhibit A hereto will be available to Holders that exchange
such Initial Notes in such Registered Exchange Offer.

 

(v)  Upon the consummation of a Private Exchange
with respect to the Initial Notes, all requirements pertaining to such Initial
Notes that Initial Notes issued to certain Holders be issued in global form
will still apply with respect to Holders of such Initial Notes that do not
exchange their Initial Notes, and Private Exchange Notes in global form with
the global securities legend and the Restricted Notes Legend set forth in
Exhibit A hereto will be available to Holders that exchange such Initial Notes
in such Private Exchange.

 

(f)  Cancellation or Adjustment of Global Note.  At such time as all beneficial interests in
a Global Note have either been exchanged for Definitive Notes, redeemed,
purchased or canceled, such Global Note shall be returned to the Depository for
cancellation or retained and canceled by the Trustee.  At any time prior to such cancellation, if any beneficial
interest in a Global Note is exchanged for certificated Notes, redeemed,
purchased or canceled, the principal amount of Notes represented by such Global
Note shall be reduced and an adjustment shall be made on the books and records
of the Trustee (if it is then the custodian for such Global Note) with respect
to such Global Note, by the Trustee or the Custodian for the Notes, to reflect
such reduction.

 

(g)  No Obligation of the Trustee.

 

(i)  The Trustee shall have no responsibility or
obligation to any beneficial owner of a Global Note, a member of, or a
participant in the Depository or other Person with respect to the accuracy of
the records of the Depository or its nominee or of any participant or member
thereof, with respect to any ownership interest in the Notes or with respect to
the delivery to any participant, member, beneficial owner or other Person
(other than the Depository) of any notice (including any notice of redemption)
or the payment of any amount, under or with respect to such Notes.  All notices and communications to be given
to the Holders and all payments to be made to Holders under the Notes shall be
given or made only to or upon the order of the registered Holders (which shall
be the Depository or its nominee in the case of a Global Note).  The rights of beneficial owners in any
Global Note shall be exercised only through the Depository subject to the
applicable rules and procedures of the Depository.  The Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its members,
participants and any beneficial owners.

 

(ii)  The Trustee shall have no obligation or duty
to monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to
any transfer of any interest in any Note (including any transfers between or
among Depository participants, members or beneficial owners in any Global Note)
other than to require delivery of such certificates and other documentation or evidence
as are expressly required by, and to do so if and when expressly required by,
the terms of this Indenture,

 

9

 

and to examine the same to
determine substantial compliance as to form with the express requirements
hereof.

 

2.4  Certificated Notes.

 

(a)  A Global Note deposited with the Depository
or with the Trustee as custodian for the Depository pursuant to
Section 2.1 shall be transferred to the beneficial owners thereof in the
form of Definitive Notes in an aggregate principal amount equal to the
principal amount of such Global Note, in exchange for such Global Note, only if
such transfer complies with Section 2.3 hereof and (i) the Depository
notifies the Company that it is unwilling or unable to continue as Depository
for such Global Note or if at any time such Depository ceases to be a “clearing
agency” registered under the Exchange Act and, in either case, a successor
Depository is not appointed by the Company within 90 days of such notice, (ii) the
Company, in its sole discretion, notifies the Trustee in writing that it elects
to cause the issuance of Definitive Notes under this Indenture or (iii) an
Event of Default has occurred and is continuing.

 

(b)  Any Global Note that is transferable to the beneficial
owners thereof pursuant to this Section shall be surrendered by the
Depository to the Trustee located at its principal corporate trust office in
the Borough of Manhattan, The City of New York, to be so transferred, in whole
or from time to time in part, without charge, and the Trustee shall
authenticate and deliver, upon such transfer of each portion of such Global
Note, an equal aggregate principal amount of Definitive Notes of authorized
denominations.  Any portion of a Global
Note transferred pursuant to this Section shall be executed, authenticated
and delivered only in denominations of $1,000 principal amount and any integral
multiple thereof and registered in such names as the Depository shall
direct.  Any Definitive Note delivered
in exchange for an interest in the Transfer Restricted Note shall, except as
otherwise provided by Section 2.3(e) hereof, bear the restricted
securities legend and definitive note legend set forth in Exhibit A hereto.

 

(c)  Subject to the provisions of
Section 2.4(b) hereof, the registered Holder of a Global Note shall be
entitled to grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the Notes.

 

(d)  In the event of the occurrence of one of the
events specified in Section 2.4(a) hereof, the Company shall promptly make
available to the Trustee a reasonable supply of Definitive Notes in definitive,
fully registered form without interest coupons.

 

10

 

EXHIBIT A

TO

RULE 144A/REGULATION S APPENDIX

 

[FORM OF FACE OF INITIAL NOTE]

 

[Global
Notes Legend]

 

UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL
NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF
DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.

 

[FOR REGULATION S GLOBAL
NOTE ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR COMPLETION OF THE
OFFERING, AN OFFER OR SALE OF NOTES WITHIN THE UNITED STATES BY A DEALER (AS
DEFINED IN THE U.S. SECURITIES ACT) MAY VIOLATE THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN
IN ACCORDANCE WITH THE RULE 144A THEREUNDER.]

 

[Restricted
Notes Legend]

 

THIS NOTE (OR ITS
PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.  EACH PURCHASER OF THIS NOTE IS HEREBY
NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM
THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

 

THE HOLDER OF THIS NOTE
AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED,
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) IN THE
UNITED 

 

 

STATES TO A PERSON WHOM THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE
904 UNDER THE SECURITIES ACT, (IV) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (V)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT, OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

[Temporary
Regulation S Global Note Legend]

 

EXCEPT AS SET FORTH BELOW,
BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL
NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL NOTE OR
ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE NOTES REPRESENTED HEREBY
WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE
EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING
OF RULE 903(b)(3) OF REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON
CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH
BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO
PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION
UNDER THE SECURITIES ACT.  DURING SUCH
40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS
TEMPORARY REGULATION S GLOBAL NOTE MAY ONLY BE SOLD, PLEDGED OR
TRANSFERRED (I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN A TRANSACTION
IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, OR (III) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I)
THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES.  HOLDERS OF INTERESTS
IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOTIFY ANY PURCHASER OF THIS NOTE
OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

 

AFTER THE EXPIRATION OF THE
DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL INTERESTS IN THIS TEMPORARY
REGULATION S GLOBAL NOTE MAY BE EXCHANGED FOR INTERESTS IN A RULE 144A
GLOBAL NOTE ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF
THE NOTES IN COMPLIANCE WITH RULE 144A, AND (2) THE TRANSFEROR OF THE
REGULATION S GLOBAL NOTE FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE
(IN THE FORM

 

2

 

ATTACHED TO THIS CERTIFICATE) TO THE EFFECT
THAT THE REGULATION S GLOBAL NOTE BEING TRANSFERRED TO A PERSON (A) WHO THE
TRANSFEROR REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A (B) PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF
THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

 

BENEFICIAL INTEREST IN A
RULE 144A GLOBAL NOTE MAY BE TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN
THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL SECURITY, WHETHER BEFORE OR
AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE
TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM
ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT IF SUCH TRANSFER IS BEING MADE
IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S OR RULE 144 (IF
AVAILABLE).

 

[Definitive
Notes Legend]

 

IN CONNECTION WITH ANY
TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH
CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY
REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

3

 

CUSIP:

ISIN:

 

TD FUNDING CORPORATION

 

	
  No.

  	
   

  	
  $

  

 

83/8  % SENIOR SUBORDINATED NOTES
DUE 2011

 

TD FUNDING CORPORATION, a
Delaware corporation promises to pay to “Cede & Co.”, or registered
assigns, the principal sum of
             
Dollars on July 15, 2011.

 

Interest Payment Dates:  January 15 and July 15.

 

Record Dates:  January 1 and July 1.

 

Reference is made to the
further provisions of this Note contained herein, which will for all purposes
have the same effect as if set forth at this place.

 

4

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  TD FUNDING CORPORATION,

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  The undersigned hereby
  acknowledges and agrees that, upon the effectiveness of the merger of TD
  Funding Corporation with and into TransDigm Inc. with TransDigm Inc.
  continuing as the surviving corporation, it will succeed by operation of law
  to all of the rights and obligations of TD Funding Corporation set forth
  herein and that all references herein to the “Company” shall thereupon be
  deemed to be references to the undersigned.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TRANSDIGM INC.,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  THE
  BANK OF NEW YORK,

  as Trustee, certifies that this is one of

  the Notes referred to in the

  within-mentioned Indenture.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  

 

5

 

[FORM
OF REVERSE SIDE OF INITIAL NOTE]

 

83/8%
SENIOR SUBORDINATED NOTES DUE 2011

 

Capitalized terms used
herein shall have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

 

1.                                       INTEREST. TD Funding Corporation, a Delaware
corporation (such corporation, and its successors and assigns under the
Indenture, including TransDigm Inc. following the merger of TD Funding
Corporation with and into TransDigm Inc., being herein called the “Company”), promises to pay interest on the
principal amount of this Note at 83/8% per annum from
July 22, 2003 until maturity; provided
that if a Registration Default (as defined in the Registration Rights
Agreement) occurs, additional interest (the “Additional
Interest”) of $0.05 per week per $1,000 principal amount of Notes
will accrue on the Notes for the first 90-day period immediately following the
occurrence of a Registration Default (increasing by an additional $0.05 per
week per $1,000 principal amount of Notes with respect to each subsequent
90-day period until all Registration Defaults have been cured, up to a maximum
additional interest rate of 2.00% per annum). The Company shall pay interest
and Additional Interest semi-annually on January 15 and July 15 of
each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each an “Interest Payment Date”).
Interest on the Notes will accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from the date of issuance; provided that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided, further, that the
first Interest Payment Date shall be January 15, 2004. The Company shall
pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on
demand at a rate that is equal to the interest rate on the Note then in effect;
it shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest and Additional Interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

2.                                       METHOD OF PAYMENT. The Company will pay interest on the Notes
(except defaulted interest) and Additional Interest, if any, to the Persons who
are registered Holders of Notes at the close of business on the January 1
or July 1 next preceding the Interest Payment Date, even if such Notes are
canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 2.12 of the Indenture with respect to
defaulted interest. The Notes will be payable as to principal, premium and
interest and Additional Interest, if any, at the office or agency of the Company
maintained for such purpose within or without the City and State of New York,
or, at the option of the Company, payment of interest and Additional Interest,
if any, may be made by check mailed to the Holders at their addresses set forth
in the register of Holders, and provided that payment by wire transfer of
immediately available funds will be required with respect to principal of and
interest, premium and Additional Interest, if any, on, all Global Notes and all
other Notes the Holders of which shall have provided wire transfer instructions
to the Company or the Paying Agent. Such payment shall be in

 

6

 

such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts.

 

3.                                       PAYING
AGENT AND REGISTRAR.
Initially, The Bank of New York, the Trustee under the Indenture, will act as
Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Subsidiaries
may act in any such capacity.

 

4.                                       INDENTURE. The Company issued the Notes under an
Indenture dated as of July 22, 2003 (“Indenture”)
among the Company, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
§§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are obligations of the Company.

 

5.                                       SUBORDINATION. The Notes are subordinated to Senior Debt
of the Company, as defined in the Indenture. 
To the extent provided in the Indenture, Senior Debt of the Company must
be paid before the Notes may be paid. 
The Company agrees, and each Holder by accepting a Note agrees, to the
subordination provisions contained in the Indenture and authorizes the Trustee
to give it effect and appoints the Trustee as attorney-in-fact for such
purpose.

 

6.                                      OPTIONAL
REDEMPTION.

 

(a)          Except as provided in Section 6(b) hereof, the Notes shall not be
redeemable at the Company’s option prior to July 15, 2006. Thereafter, the
Notes shall be subject to redemption at any time at the option of the Company,
in whole or in part, upon not less than 30 nor more than 60 days’ notice, at
the redemption prices (expressed as percentages of principal amount thereof)
set forth below plus accrued and unpaid interest and Additional Interest
thereon, if any, to the applicable redemption date, if redeemed during the
twelve month period commencing on July 15 of the year set forth below:

 

	
  Year

  	
   

  	
  Percentage
  of

  Principal

  Amount

  	
   

  
	
  2006

  	
   

  	
  106.281

  	
  %

  
	
  2007

  	
   

  	
  104.188

  	
  %

  
	
  2008

  	
   

  	
  102.094

  	
  %

  
	
  2009 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)         Notwithstanding the foregoing prior to July 15, 2006, the Company
may at its option on one or more occasions redeem Notes (which includes
Additional Notes, if any) in an aggregate principal amount not to exceed 35% of
the aggregate principal amount of the Notes (which includes Additional Notes,
if any) originally issued at a redemption price (expressed as a percentage of
principal amount) of 108.375%, plus accrued and unpaid interest and Additional
Interest, if any, to the redemption date, with the net cash proceeds from one
or more Equity Offerings; provided, however,
that (1) at least 65% of such aggregate principal amount of Notes (which
includes Additional Notes, if any) remains

 

7

 

outstanding immediately
after the occurrence of each such redemption (other than Notes held, directly
or indirectly, by the Company or its Affiliates); and (2) each such redemption
occurs within 60 days after the date of the related Equity Offering.

 

7.                                      MANDATORY
REDEMPTION.
The Company shall not be
required to make any mandatory redemption or sinking fund payments with respect
to the Notes.

 

8.                                       REPURCHASE AT OPTION
OF HOLDER.

 

(a)                                  If a Change of Control occurs, each Holder
shall have the right to require that the Company purchase all or a portion of
such Holder’s Notes pursuant to the offer described in the Indenture (the “Change of Control Offer”), at a purchase
price equal to 101% of the principal amount thereof plus accrued interest and
Additional Interest, if any, to the date of purchase. Within 30 days following
the date upon which the Change of Control occurred, the Company must send, by
first class mail, a notice to each Holder, which notice shall govern the terms
of the Change of Control Offer. Such notice shall state, among other things,
the purchase date, which must be no earlier than 30 days nor later than 60 days
from the date such notice is mailed, other than as may be required by law (the
“Change of Control Payment Date”).
Holders electing to have a Note purchased pursuant to a Change of Control Offer
shall be required to surrender the Note, with the form entitled “Option of Holder
to Elect Purchase” on the reverse of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on the third
Business Day prior to the Change of Control Payment Date.

 

(b)         If the Company or a Restricted Subsidiary consummates any Asset Sales,
under certain circumstances the Company is required to commence an offer to all
Holders of Notes (as “Net Proceeds Offer”)
pursuant to Section 3.09 of the Indenture.  The Net Proceeds Offer may also be made to holders of other
Senior Subordinated Debt of the Company or a Restricted Subsidiary of the
Company requiring the making of such an offer. 
Pursuant to the Net Proceeds Offer, the Company shall offer to purchase,
on a pro rata basis, the maximum amount of Notes and, if it so elects, such
other Senior Subordinated Debt that may be purchased with the Net Proceeds
Offer Amount (as defined in the Indenture) at a price equal to 100% of their
principal amount (or, in the event such other Senior Subordinated Debt was
issued with significant original issue discount, 100% of the accreted value
thereof) plus accrued and unpaid interest and Additional Interest thereon, if
any, to the date of purchase, in accordance with the procedures set forth in
the Indenture (or, in respect of such other Senior Subordinated Debt, such
lesser price, if any, as may be provided for by the terms of such Senior
Subordinated Debt).  To the extent that
the aggregate amount of Notes or such other Senior Subordinated Debt tendered
pursuant to a Net Proceeds Offer is less than the Net Proceeds Offer Amount,
the Company (or such Subsidiary) may use such deficiency for general corporate
purposes or for any other purpose not prohibited by the Indenture. If the
aggregate principal amount of Notes or such other Senior Subordinated Debt
surrendered by holders thereof exceeds the amount of Net Proceeds Offer Amount,
the Trustee shall select the Notes to be purchased on a pro rata basis. Holders of Notes that are
the subject of an offer to purchase will receive a Net Proceeds Offer from the
Company prior to any related purchase date and may elect to have such Notes
purchased by completing the form entitled “Option of Holder to Elect Purchase”
on the reverse of the Notes.

 

8

 

9.                                       NOTICE
OF REDEMPTION. Notice of
redemption will be mailed at least 30 days but not more than 60 days before the
redemption date to each Holder whose Notes are to be redeemed at its registered
address. Notes in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000, unless all of the Notes held by a Holder are
to be redeemed. On and after the redemption date interest ceases to accrue on
Notes or portions thereof called for redemption.

 

10.                                 DENOMINATIONS,
TRANSFER, EXCHANGE. The
Notes are in registered form without coupons in denominations of $1,000 and
integral multiples of $1,000. The transfer of Notes may be registered and Notes
may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Company may require a Holder to pay any taxes
and fees required by law or permitted by the Indenture. The Company need not
exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part. Also, the Company need not exchange or register the transfer of any Notes
during a period beginning at the opening of business 15 days before the day of
the mailing of notice of redemption and ending at the close of business on such
day or during the period between a record date and the next succeeding Interest
Payment Date.

 

11.                                 PERSONS
DEEMED OWNERS. The registered
Holder of a Note may be treated as its owner for all purposes.

 

12.                                 AMENDMENT,
SUPPLEMENT AND WAIVER.
Subject to certain exceptions, the Indenture, the Guarantees or the Notes may
be amended or supplemented with the consent of the Holders of at least a majority
in principal amount of the then outstanding Notes, if any, voting as a single
class, and any existing default or compliance with any provision of the
Indenture, the Guarantees or the Notes may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Notes, if
any, voting as a single class. Without the consent of any Holder of a Note, the
Indenture, the Guarantees or the Notes may be amended or supplemented, to cure
any ambiguity, defect or inconsistency, to provide for uncertificated Notes in
addition to or in place of certificated Notes or to alter the provisions of
Article 2 of the Indenture or the Appendix to the Indenture relating to
the form of the Notes (including the related definitions) in a manner that does
not adversely affect any Holder, to provide for the assumption of the Company’s
or any Guarantor’s obligations to Holders of the Notes in case of a merger or
consolidation, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture of any such Holder, to comply with the
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the Trust Indenture Act, to provide for the issuance of Notes
issued after the Issue Date in accordance with the limitations set forth in the
Indenture, or to allow any Guarantor to execute a supplemental indenture to the
Indenture and/or a Guarantee with respect to the Notes.

 

13.                                 DEFAULTS
AND REMEDIES.  Events of Default include: (i) the failure to
pay interest or Additional Interest, if any, on any Notes when the same becomes
due and payable if the default continues for a period of 30 days (whether or
not such payment shall be prohibited by Article 10 or Article 12 of
the Indenture); (ii) the failure to pay the principal on any Notes when such
principal becomes due and payable, at maturity, upon redemption or otherwise
(including the failure to make a payment to purchase Notes

 

9

 

tendered pursuant to a Change of Control
Offer or a Net Proceeds Offer on the date specified for such payment in the
applicable offer to purchase) (whether or not such payment shall be prohibited
by Article 10 or Article 12 of the Indenture); (iii) a default in the
observance or performance of any other covenant or agreement contained in the
Indenture if the default continues for a period of 30 days after the Company
receives written notice specifying the default (and demanding that such default
be remedied) from the Trustee or the Holders of at least 25% of the outstanding
principal amount of the Notes (except in the case of a default with respect to
Section 5.01 or Section 11.06 of the Indenture, which will constitute
an Event of Default with such notice requirement but without such passage of
time requirement); (iv) the failure to pay at final stated maturity (giving
effect to any applicable grace periods and any extensions thereof) the
principal amount of any Indebtedness of the Company or any Significant
Subsidiary of the Company (other than a Securitization Entity) or the
acceleration of the maturity of any such Indebtedness, if the aggregate
principal amount of such Indebtedness, together with the principal amount of
any other such Indebtedness in default for failure to pay principal at final
maturity or which has been accelerated, aggregates $10.0 million or more at any
time; (v) one or more judgments in an aggregate amount in excess of $10.0
million shall have been rendered against the Company or any of its Significant
Subsidiaries and such judgments remain undischarged, unpaid or unstayed for a
period of 60 days after such judgment or judgments become final and
non-appealable; and (vi) certain events of bankruptcy affecting the Company or
any of its Significant Subsidiaries. If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable.
Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy with respect to the Company, all outstanding Notes
will become due and payable without further action or notice. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. Subject
to certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default (except a Default or Event of Default relating to
the payment of principal or interest or Additional Interest) if it determines
that withholding notice is in their interest. The Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing
Default or Event of Default and its consequences under the Indenture except a continuing
Default or Event of Default in the payment of interest (including Additional
Interest, if any) on, or the principal of, the Notes. The Company is required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

 

14.                                 GUARANTEE.  The
payment by the Company of the principal of, and premium and interest (including
Additional Interest, if any) on, the Notes is fully and unconditionally
guaranteed on a joint and several senior subordinated basis by each of the
Guarantors.

 

15.                                 TRUSTEE
DEALINGS WITH COMPANY. The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may
otherwise deal with the Company or its Affiliates, as if it were not the
Trustee.

 

10

 

16.                                 NO
RECOURSE AGAINST OTHERS. A
past, present or future director, officer, employee, incorporator or
stockholder of Parent, the Company or any Subsidiary of the Company (other than
the Company, Parent or any Subsidiary of the Company that is a Guarantor), as
such, shall not have any liability for any obligations of Parent, the Company
or any Subsidiary of the Company under the Notes, the Guarantees or the
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

 

17.                                 AUTHENTICATION. This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

 

18.                                 ABBREVIATIONS. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (=Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

19.                                 ADDITIONAL
RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to
Holders of Notes under the Indenture, Holders of Notes shall have all the
rights set forth in the Registration Rights Agreement dated as of July 22,
2003, among the Company and the parties named on the signature pages
thereof.  Each Holder of a Note, by
acceptance hereof, acknowledges and agrees to the provisions of the
Registration Rights Agreement, including the obligations of the Holders with
respect to a registration and the indemnification of the Company to the extent
provided therein.

 

20.                                 CUSIP and ISIN NUMBERS. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may
use CUSIP or ISIN numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed
on the Notes or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

 

The Company will furnish to
any Holder upon written request and without charge a copy of the Indenture
and/or the Registration Rights Agreement. Requests may be made to:

 

TransDigm Inc.

26380 Curtis Wright Parkway

Richmond Heights, Ohio  44143

Attention:  Corporate Secretary

 

11

 

ASSIGNMENT
FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

(Print or type assignee’s
name, address and zip code)

 

(Insert assignee’s soc. sec.
or tax I.D. No.)

 

and irrevocably
appoint                              agent
to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

 

 

	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Sign exactly as your name
  appears on the other side of this Note.

  	
   

  
						

 

In connection with any transfer of any of the
Notes evidenced by this certificate occurring prior to the expiration of the
period referred to in Rule 144(k) under the Securities Act after the later of
the date of original issuance of such Notes and the last date, if any, on which
such Notes were owned by the Company or any Affiliate of the Company, the
undersigned confirms that such Notes are being transferred in accordance with
its terms:

 

CHECK ONE BOX BELOW

 

	
  (1)

  	
   

  	
  o

  	
   

  	
  to the Company; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  o

  	
   

  	
  inside the United States
  to a “qualified institutional buyer” (as defined in Rule 144A under the
  Securities Act of 1933, as amended (the “Securities Act”) that purchases for
  its own account or for the account of a qualified institutional buyer to whom
  notice is given that such transfer is being made in reliance on
  Rule 144A, in each case pursuant to and in compliance with Rule 144A
  under the Securities Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  o

  	
   

  	
  outside the United States
  in an offshore transaction within the meaning of Regulation S under the
  Securities Act in compliance with Rule 904 under the Securities Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  o

  	
   

  	
  pursuant to the exemption
  from registration provided by Rule 144 under the Securities Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  o

  	
   

  	
  pursuant to another
  available exemption from registration under the Securities Act; or

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  o

  	
   

  	
  pursuant to an effective
  registration statement under the Securities Act;

  

 

12

 

Unless one of the boxes is
checked, the Trustee will refuse to register any of the Notes evidenced by this
certificate in the name of any person other than the registered holder thereof;
provided, however, that if box (3), (4) or (5) is checked, the
Trustee shall be entitled to require, prior to registering any such transfer of
the Notes , such legal opinions, certifications and other information as the
Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, such as the exemption
provided by Rule 144 under such Act.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature must be
  guaranteed

  	
   

  	
  Signature

  	
   

  

 

Signatures must be
guaranteed by an “eligible guarantor institution” meeting the requirements of
the Registrar, which requirements include membership or participation in the
Security Transfer Agent Medallion Program (“STAMP”) or such other “signature
guarantee program” as may be determined by the Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of
1934, as amended.

 

13

 

TO
BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED.

 

The undersigned represents
and warrants that it is purchasing this Note for its own account or an account
with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of
Rule 144A under the Securities Act of 1933, as amended, and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon the
undersigned’s foregoing representations in order to claim the exemption from
registration provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:  To be executed by an

  executive officer

  

 

14

 

SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL NOTE

 

The following increases or
decreases in this Global Note have been made:

 

 

	
  Date of

  Exchange

  	
   

  	
  Amount of
  decrease in

  Principal amount of this

  Global Note

  	
   

  	
  Amount of
  increase in

  Principal amount of this

  Global Note

  	
   

  	
  Principal
  amount of this

  Global Note following such

  decrease or increase)

  	
   

  	
  Signature
  of authorized

  officer of Trustee or

  Custodian for the Notes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

15

 

OPTION
OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have
this Note purchased by the Company pursuant to Section 4.10  or 4.15 of the Indenture, check the box:

 

o

 

If you want to elect to have
only part of this Note purchased by the Company pursuant to Section 4.10
or 4.15 of the Indenture, state the amount in principal amount:  $•

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name

  appears on the other side of

  this Security.)

  	
   

  
	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  (Signature must be guaranteed)

  	
   

  
							

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such other “signature guarantee program” as may
be determined by the Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

 

16

 

EXHIBIT B

TO

RULE 144A/REGULATION S APPENDIX

CUSIP:

ISIN:

 

[FORM
OF FACE OF EXCHANGE NOTE

OR PRIVATE EXCHANGE NOTE] */**/

 

 

*/ If the Note is to be issued in global form
add the Global Notes Legend from Exhibit A to Rule 144A/Regulation S Appendix
and the attachment from such Exhibit A captioned - SCHEDULE OF INCREASES OR
DECREASES IN GLOBAL NOTE”.

 

**/
If the Note is a Private Exchange Note issued in a Private Exchange to an
Initial Purchaser holding an unsold portion of its initial allotment, add the
Restricted Notes Legend from Exhibit A to Rule 144A/Regulation S Appendix and
replace the Assignment Form included in this Exhibit B with the Assignment Form
included in such Exhibit A.

 

 

TRANSDIGM INC.

 

	
  No.

  	
   

  	
  $

  

 

83/8  % SENIOR SUBORDINATED NOTES
DUE 2011

 

TRANSDIGM INC., a Delaware
corporation promises to pay to “Cede & Co.”, or registered assigns, the
principal sum of
                
Dollars on July 15, 2011.

 

Interest Payment Dates:  January 15 and July 15.

 

Record Dates:  January 1 and July 1.

 

Reference is made to the
further provisions of this Note contained herein, which will for all purposes
have the same effect as if set forth at this place.

 

2

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  TRANSDIGM, INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  
	
   

  
	
  TRUSTEE’S CERTIFICATE OF

  AUTHENTICATION

  
	
   

  
	
  THE BANK OF NEW YORK,

  as Trustee, certifies that this is one of

  the Notes referred to in the

  within-mentioned Indenture.

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
							

 

3

 

[FORM
OF REVERSE SIDE OF EXCHANGE NOTE OR PRIVATE EXCHANGE NOTE]

 

83/8  % SENIOR SUBORDINATED NOTES DUE 2011

 

Capitalized terms used
herein shall have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

 

1.                                       INTEREST.TransDigm Inc., a Delaware corporation (such
corporation, and its successors and assigns under the Indenture, being herein
called the “Company”), promises
to pay interest on the principal amount of this Note at 83/8%
per annum from July 22, 2003 until maturity; [provided that if a Registration Default (as defined in the
Registration Rights Agreement) occurs, additional interest (the “Additional Interest”) of $0.05 per week
per $1,000 principal amount of Notes will accrue on the Notes for the first
90-day period immediately following the occurrence of a Registration Default
(increasing by an additional $0.05 per week per $1,000 principal amount of
Notes with respect to each subsequent 90-day period until all Registration Defaults
have been cured, up to a maximum additional interest rate of 2.00% per
annum)](1). The Company shall pay interest [and Additional Interest]
semi-annually on January 15 and July 15 of each year, or if any such
day is not a Business Day, on the next succeeding Business Day (each an “Interest Payment Date”). Interest on the
Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from the date of issuance; provided that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided, further, that the
first Interest Payment Date shall be January 15, 2004. The Company shall
pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on
demand at a rate that is equal to the interest rate on the Note then in effect;
it shall pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest [and Additional
Interest] (without regard to any applicable grace periods) from time to time on
demand at the same rate to the extent lawful. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

 

2.                                       METHOD
OF PAYMENT. The Company will
pay interest on the Notes (except defaulted interest) [and Additional Interest,
if any] to the Persons who are registered Holders of Notes at the close of
business on the January 1 or July 1 next preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date, except as provided in Section 2.12 of
the Indenture with respect to defaulted interest. The Notes will be payable as
to principal, premium and interest [and Additional Interest, if any,] at the
office or agency of the Company maintained for such purpose within or without
the City and State of New York, or, at the option of the Company, payment of
interest [and Additional Interest, if any,] may be made by check mailed to the
Holders at their addresses set forth in the register of

 

(1)  Insert if at
the date of issuance of the Exchange Note or Private Exchange Note (as the case
may be) any Registration Default has occurred with respect to the related
Initial Notes during the interest period in which such date of issuance occurs.

 

4

 

Holders, and provided that payment by wire
transfer of immediately available funds will be required with respect to
principal of and interest, premium and Additional Interest, if any, on, all
Global Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to the Company or the Paying Agent. Such payment shall be
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts.

 

3.                                       PAYING
AGENT AND REGISTRAR.
Initially, The Bank of New York, the Trustee under the Indenture, will act as
Paying Agent and Registrar. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company or any of its Subsidiaries
may act in any such capacity.

 

4.                                       INDENTURE. The Company issued the Notes under an
Indenture dated as of July 22, 2003 (“Indenture”)
among the Company, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
§§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are obligations of the Company.

 

5.                                       SUBORDINATION. The Notes are subordinated to Senior Debt
of the Company, as defined in the Indenture. 
To the extent provided in the Indenture, Senior Debt of the Company must
be paid before the Notes may be paid. 
The Company agrees, and each Holder by accepting a Note agrees, to the
subordination provisions contained in the Indenture and authorizes the Trustee
to give it effect and appoints the Trustee as attorney-in-fact for such
purpose.

 

6.                                       OPTIONAL
REDEMPTION.

 

(c)                                  Except as provided in Section 6(b)
hereof, the Notes shall not be redeemable at the Company’s option prior to
July 15, 2006. Thereafter, the Notes shall be subject to redemption at any
time at the option of the Company, in whole or in part, upon not less than 30
nor more than 60 days’ notice, at the redemption prices (expressed as
percentages of principal amount thereof) set forth below plus accrued and
unpaid interest [and Additional Interest] thereon, if any, to the applicable
redemption date, if redeemed during the twelve month period commencing on
July 15 of the year set forth below:

 

	
  Year

  	
   

  	
  Percentage
  of

  Principal

  Amount

  	
   

  
	
  2006

  	
   

  	
  106.281

  	
  %

  
	
  2007

  	
   

  	
  104.188

  	
  %

  
	
  2008

  	
   

  	
  102.094

  	
  %

  
	
  2009 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(d)         Notwithstanding the foregoing prior to July 15, 2006, the Company
may at its option on one or more occasions redeem Notes (which includes
Additional Notes, if any) in an aggregate principal amount not to exceed 35% of
the aggregate principal amount of the Notes (which includes Additional Notes,
if any) originally issued at a redemption price

 

5

 

(expressed as a percentage
of principal amount) of 108.375%, plus accrued and unpaid interest [and
Additional Interest, if any,] to the redemption date, with the net cash
proceeds from one or more Equity Offerings; provided,
however, that (1) at least 65% of such aggregate principal amount of
Notes (which includes Additional Notes, if any) remains outstanding immediately
after the occurrence of each such redemption (other than Notes held, directly
or indirectly, by the Company or its Affiliates); and (2) each such redemption
occurs within 60 days after the date of the related Equity Offering.

 

7.                                      MANDATORY
REDEMPTION.  The Company shall not be required to make any mandatory redemption or
sinking fund payments with respect to the Notes.

 

8.                                       REPURCHASE AT OPTION
OF HOLDER.

 

(e)                                  If a Change of Control occurs, each Holder
shall have the right to require that the Company purchase all or a portion of
such Holder’s Notes pursuant to the offer described in the Indenture (the “Change of Control Offer”), at a purchase
price equal to 101% of the principal amount thereof plus accrued interest [and
Additional Interest, if any,] to the date of purchase. Within 30 days following
the date upon which the Change of Control occurred, the Company must send, by
first class mail, a notice to each Holder, which notice shall govern the terms
of the Change of Control Offer. Such notice shall state, among other things,
the purchase date, which must be no earlier than 30 days nor later than 60 days
from the date such notice is mailed, other than as may be required by law (the
“Change of Control Payment Date”).
Holders electing to have a Note purchased pursuant to a Change of Control Offer
shall be required to surrender the Note, with the form entitled “Option of Holder
to Elect Purchase” on the reverse of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on the third
Business Day prior to the Change of Control Payment Date.

 

(f)            If the Company or a Restricted Subsidiary
consummates any Asset Sales, under certain circumstances the Company is
required to commence an offer to all Holders of Notes (as “Net Proceeds Offer”) pursuant to
Section 3.09 of the Indenture.  The
Net Proceeds Offer may also be made to holders of other Senior Subordinated
Debt of the Company or a Restricted Subsidiary of the Company requiring the
making of such an offer.  Pursuant to
the Net Proceeds Offer, the Company shall offer to purchase, on a pro rata
basis, the maximum amount of Notes and, if it so elects, such other Senior
Subordinated Debt that may be purchased with the Net Proceeds Offer Amount (as
defined in the Indenture) at a price equal to 100% of their  principal amount (or, in the event such
other Senior Subordinated Debt was issued with significant original issue
discount, 100% of the accreted value thereof) plus accrued and unpaid interest
[and Additional Interest] thereon, [if any,] to the purchase date, in
accordance with the procedures set forth in the Indenture (or, in respect of
such other Senior Subordinated Debt, such lesser price, if any, as may be
provided for by the terms of such Senior Subordinated Debt).  To the extent that the aggregate amount of
Notes or such other Senior Subordinated Debt tendered pursuant to a Net
Proceeds Offer is less than the Net Proceeds Offer Amount, the Company (or such
Subsidiary) may use such deficiency for general corporate purposes or for any
other purpose not prohibited by the Indenture. If the aggregate principal
amount of Notes or such other Senior Subordinated Debt surrendered by holders
thereof exceeds the amount of Net Proceeds Offer Amount, the Trustee shall
select the Notes to be purchased on a pro
rata basis. Holders of Notes that are the subject of an offer to
purchase will receive a Net Proceeds Offer from the

 

6

 

Company prior to any related
purchase date and may elect to have such Notes purchased by completing the form
entitled “Option of Holder to Elect Purchase” on the reverse of the Notes.

 

9.                                       NOTICE
OF REDEMPTION. Notice of
redemption will be mailed at least 30 days but not more than 60 days before the
redemption date to each Holder whose Notes are to be redeemed at its registered
address. Notes in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000, unless all of the Notes held by a Holder are
to be redeemed. On and after the redemption date interest ceases to accrue on
Notes or portions thereof called for redemption.

 

10.                                 DENOMINATIONS,
TRANSFER, EXCHANGE. The
Notes are in registered form without coupons in denominations of $1,000 and
integral multiples of $1,000. The transfer of Notes may be registered and Notes
may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and the Company may require a Holder to pay any taxes
and fees required by law or permitted by the Indenture. The Company need not
exchange or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part. Also, the Company need not exchange or register the transfer of any Notes
during a period beginning at the opening of business 15 days before the day of
the mailing of notice of redemption and ending at the close of business on such
day or during the period between a record date and the next succeeding Interest
Payment Date.

 

11.                                 PERSONS
DEEMED OWNERS. The registered
Holder of a Note may be treated as its owner for all purposes.

 

12.                                 AMENDMENT,
SUPPLEMENT AND WAIVER.
Subject to certain exceptions, the Indenture, the Guarantees or the Notes may
be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the then outstanding Notes, if any, voting as a
single class, and any existing default or compliance with any provision of the
Indenture, the Guarantees or the Notes may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Notes, if
any, voting as a single class. Without the consent of any Holder of a Note, the
Indenture, the Guarantees or the Notes may be amended or supplemented, to cure
any ambiguity, defect or inconsistency, to provide for uncertificated Notes in
addition to or in place of certificated Notes or to alter the provisions of
Article 2 of the Indenture or the Appendix to the Indenture relating to
the form of the Notes (including the related definitions) in a manner that does
not adversely affect any Holder, to provide for the assumption of the Company’s
or any Guarantor’s obligations to Holders of the Notes in case of a merger or
consolidation, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture of any such Holder, to comply with the
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the Trust Indenture Act, to provide for the issuance of Notes
issued after the Issue Date in accordance with the limitations set forth in the
Indenture, or to allow any Guarantor to execute a supplemental indenture to the
Indenture and/or a Guarantee with respect to the Notes.

 

13.                                 DEFAULTS
AND REMEDIES.  Events of Default include: (i) the failure to
pay interest [or Additional Interest, if any,] on any Notes when the same
becomes due

 

7

 

and payable if the default continues for a
period of 30 days (whether or not such payment shall be prohibited by
Article 10 or Article 12 of the Indenture); (ii) the failure to pay
the principal on any Notes when such principal becomes due and payable, at
maturity, upon redemption or otherwise (including the failure to make a payment
to purchase Notes tendered pursuant to a Change of Control Offer or a Net
Proceeds Offer on the date specified for such payment in the applicable offer
to purchase) (whether or not such payment shall be prohibited by
Article 10 or Article 12 of the Indenture); (iii) a default in the
observance or performance of any other covenant or agreement contained in the
Indenture if the default continues for a period of 30 days after the Company
receives written notice specifying the default (and demanding that such default
be remedied) from the Trustee or the Holders of at least 25% of the outstanding
principal amount of the Notes (except in the case of a default with respect to
Section 5.01 or Section 11.06 of the Indenture, which will constitute
an Event of Default with such notice requirement but without such passage of
time requirement); (iv) the failure to pay at final stated maturity (giving
effect to any applicable grace periods and any extensions thereof) the
principal amount of any Indebtedness of the Company or any Significant
Subsidiary of the Company (other than a Securitization Entity) or the
acceleration of the maturity of any such Indebtedness, if the aggregate
principal amount of such Indebtedness, together with the principal amount of
any other such Indebtedness in default for failure to pay principal at final
maturity or which has been accelerated, aggregates $10.0 million or more at any
time; (v) one or more judgments in an aggregate amount in excess of $10.0 million
shall have been rendered against the Company or any of its Significant
Subsidiaries and such judgments remain undischarged, unpaid or unstayed for a
period of 60 days after such judgment or judgments become final and
non-appealable; and (vi) certain events of bankruptcy affecting the Company or
any of its Significant Subsidiaries. If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable.
Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy with respect to the Company, all outstanding Notes
will become due and payable without further action or notice. Holders may not enforce
the Indenture or the Notes except as provided in the Indenture. Subject to
certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default (except a Default or Event of Default relating to
the payment of principal or interest [or Additional Interest]) if it determines
that withholding notice is in their interest. The Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing
Default or Event of Default and its consequences under the Indenture except a
continuing Default or Event of Default in the payment of interest [(including
Additional Interest, if any)] on, or the principal of, the Notes. The Company
is required to deliver to the Trustee annually a statement regarding compliance
with the Indenture, and the Company is required upon becoming aware of any
Default or Event of Default, to deliver to the Trustee a statement specifying
such Default or Event of Default.

 

14.                                 GUARANTEE.  The
payment by the Company of the principal of, and premium and interest
[(including Additional Interest, if any)] on, the Notes is fully and
unconditionally guaranteed on a joint and several senior subordinated basis by
each of the Guarantors.

 

8

 

15.                                 TRUSTEE
DEALINGS WITH COMPANY. The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may
otherwise deal with the Company or its Affiliates, as if it were not the
Trustee.

 

16.                                 NO
RECOURSE AGAINST OTHERS. A
past, present or future director, officer, employee, incorporator or
stockholder of Parent, the Company or any Subsidiary of the Company (other than
the Company, Parent or any Subsidiary of the Company that is a Guarantor), as
such, shall not have any liability for any obligations of Parent, the Company
or any Subsidiary of the Company under the Notes, the Guarantees or the
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

 

17.                                 AUTHENTICATION. This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

 

18.                                 ABBREVIATIONS. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (=Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

 

[19.                             ADDITIONAL
RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to
Holders of Notes under the Indenture, Holders of Notes shall have all the
rights set forth in the Registration Rights Agreement dated as of July 22,
2003, among the Company and the parties named on the signature pages
thereof.  Each Holder of a Note, by
acceptance hereof, acknowledges and agrees to the provisions of the
Registration Rights Agreement, including the obligations of the Holders with
respect to a registration and the indemnification of the Company to the extent
provided therein.](2)

 

20.                                 CUSIP and ISIN NUMBERS. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP and ISIN numbers to be printed on the Notes and the Trustee may
use CUSIP or ISIN numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed
on the Notes or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

 

(2)  Delete if this Note is not being issued in
exchange for an Initial Note.

 

9

 

The Company will furnish to
any Holder upon written request and without charge a copy of the Indenture
and/or the Registration Rights Agreement. Requests may be made to:

 

TransDigm Inc.

26380 Curtis Wright Parkway

Richmond Heights, Ohio  44143

Attention:  Corporate Secretary

 

10

 

ASSIGNMENT
FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

 

(Print or type assignee’s
name, address and zip code)

 

(Insert assignee’s soc. sec.
or tax I.D. No.)

 

 

and irrevocably
appoint                               agent
to transfer this Note on the books of the Company.  The agent may substitute another to act for him.

 

	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
  Your
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Sign exactly as your name
  appears on the other side of this Note.

  	
   

  
						

 

11

 

OPTION
OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have
this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the
Indenture, check the box:

 

o

 

If you want to elect to have
only part of this Note purchased by the Company pursuant to Section 4.10
or 4.15 of the Indenture, state the amount in principal amount:  $•

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name

  appears on the other side of

  this Security.)

  	
   

  
	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  (Signature
  must be guaranteed)

  	
   

  
							

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such other “signature guarantee program” as may
be determined by the Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended

 

12

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