Exhibit 10.7
1999 TRANSDIGM INCENTIVE PROGRAM - SUMMARY
o Annual program based on business plan parameters
o Target awards are a percentage of base salary and vary depending on
position and responsibilities
o Target awards are multiplied by a three factor formula
Annual Incentive Award = Target Award
x Corporate Performance Factor
x Group Performance Factor
x Individual Performance Factor
o Corporate Performance Factor is set at the discretion of the Board of
Directors, based on the performance of TransDigm.
o Group Performance Factor is defined by the following measurables:
Earnings Factor = Actual Earnings/Plan
Investment Factor = Actual ROI/Plan
Earnings = Group Operating Income
Group 1999 Business Plan Earnings
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AdelWiggins = $19.322 Million
AeroControlex = $24.725 Million
Marathon = $7.555 Million
TransDigm = $48.425 Million
ROI = Earnings/Average Group Investment
Group 1999 Business Plan ROI
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AdelWiggins = 164%
AeroControlex = 156%
Marathon = 51%
TransDigm = 122%
For Corporate and Group Staff:
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Group Performance Factor = .67 x Earnings Factor +
.33 x Investment Factor
o Individual Performance Factor is set at the discretion of the Office of
the Chairman