Document:

Amendment to Form of Stock Option Agreement

 Exhibit 10.3 
 FORM OF AMENDMENT 
 TO THE 

STOCK OPTION AGREEMENT 
 WHEREAS, Blue Acquisition Group, Inc. (the “Company”) has granted options to purchase common stock of the Company (“Options”) pursuant to that certain Stock Option Agreement
(the “Option Agreement”) pursuant to the 2011 Stock Incentive Plan for Key Employees of Blue Acquisition Group, Inc. and its Affiliates, as such plan may be amended from time to time (the “Plan”), and all capitalized terms used
but not otherwise defined herein shall have the meaning set forth in the Option Agreement; and 
 WHEREAS, Article 10 of
the Plan authorizes the Committee (as such term is defined in the Plan) to amend the terms of outstanding Options so long as such amendment does not materially impair the rights of the holder of such Options (the “Optionee”); and

 WHEREAS, the Company now desires to amend the Option Agreement to provide the Optionee with certain additional
opportunities to become vested in the Performance Option in the event of a Stock Change in Control (as defined below) occurring prior to March 8, 2016; and 
 WHEREAS, the Company by resolution of the Committee has duly approved such amendment set forth below. 
 NOW, THEREFORE, the Option Agreement is hereby amended as follows: 
 1.     Section 1.16 of the Option Agreement is hereby amended by deleting such section and replacing it in its entirety with the following: 

“Section 1.16 Stock Change in Control 

“Stock Change in Control” shall mean a Change in Control event in which the Sponsors receive
or retain shares of common stock or other equity or debt securities or other property in consideration, in whole or in part, for their direct or indirect interests in the Company (any such stock, securities and other property, “Stock
Consideration”). 
 Section 1.17 Stock Consideration Value 

“Stock Consideration Value” shall mean the per share fair market value of any Stock Consideration, as
determined on the date of the corresponding Change in Control event by the Board in effect as of immediately prior to such event pursuant to the governing transaction agreements of such event, to the extent applicable, and if not reasonably
ascertainable by such agreements, as shall be determined reasonably and in good faith by the Board at such time, for purposes of Section 3.1(c)(iii) of this Agreement. 

  
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 Section 1.18 Time Option 

“Time Option” shall mean the right and option to purchase, on the terms and conditions set forth herein, all
or any part of an aggregate of the number of shares of Common Stock set forth on Schedule B hereof opposite the term Time Option.” 
 2.     Section 3.1(c)(ii) of the Option Agreement is hereby amended by deleting such section and replacing it in its entirety with the following: 

“(ii) any then unvested portion of the Performance Option shall become immediately vested and exercisable as to
100% of the shares of Common Stock subject to such Option immediately prior to a Change in Control only if such Change in Control is a Realization Event upon which the Sponsors achieve a Sponsor MOIC (including a Sponsor MOIC that is implied by a
Sponsor IRR, as applicable) that is equal to or greater than the Ceiling Vesting Target; provided, further, that in the event the Committee determines in its discretion pursuant to the terms of Section 9(b)(i) of the Plan that the
Performance Option shall be canceled in a Stock Change in Control that occurs prior to the fifth anniversary of the Closing Date, the value of the consideration to be determined by the Committee for purposes of this Section 3.1(c)(ii) and
Section 9(b)(i) of the Plan shall include the Stock Consideration Value; and 
 (iii) notwithstanding
anything else in this Agreement, in the event that Optionee’s employment is terminated without Cause by the Company or for Good Reason by the Optionee following a Stock Change in Control that occurs prior to the fifth anniversary of the Closing
Date, then on the date of such termination, any then unvested portion of the Performance Option (including any Option into which the Performance Option may be converted in the Stock Change in Control) still outstanding, if any, shall become
immediately vested and exercisable as to 100% of the shares of Common Stock subject to such Option if, as of the date of the Stock Change in Control, the Stock Consideration Value had as of such date been taken into account as cash for purposes of
determining whether the provision of Section 3.1(c)(ii) above should have applied.” 
 3.
     Section 3(d) of the Option Agreement is hereby amended by deleting such section and replacing it in its entirety with the following: 

“(d) Forfeit of Options on Termination of Employment. Notwithstanding the foregoing but except as provided
in Section 3.1(a)(iii), 3.1(b) and 3.1(c)(iii), as applicable, no Option shall become exercisable as to any additional shares of Common Stock upon or following the termination of employment of the Optionee for any reason and any Option, which
is unexercisable as of the Optionee’s termination of employment, shall immediately expire without payment therefor.” 

  
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 4.      The definitions of “Cause”,
“Disability” and “Good Reason” shall, to the extent applicable, be determined pursuant to the Employment Agreement. 
 5.      The Option Agreement (along with Schedule A and Schedule B to the Option Agreement), as amended as provided above, shall continue in full force and effect in accordance
with its terms. 
 6.      This amendment is effective as of December 8, 2011.

 IN WITNESS WHEREOF, this amendment is hereby executed on behalf of the Company. 

 

			
	BLUE ACQUISITION GROUP, INC.
		
	By:	 	 
	Name:
	Title:

 Acknowledged and agreed this      day of
                , 2011. 
  

							
	 	  		  		  	

 [NAME]Second Supplemental Indenture, dated as of December 9, 2011

 Exhibit 4.1 
 TRANSDIGM INC., 
 TRANSDIGM GROUP INCORPORATED, 

THE GUARANTORS NAMED HEREIN, 
 AND 
 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 

as Trustee 
  

 
 SECOND
SUPPLEMENTAL INDENTURE 
 Dated as of December 9, 2011 

to 
 Indenture

 Dated as of December 14, 2010 
 by and among 
 TRANSDIGM INC., 

TRANSDIGM GROUP INCORPORATED, 
 THE GUARANTORS NAMED THEREIN, 
 AND 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 
 as Trustee 
  

 
 7.75% Senior
Subordinated Notes due 2018 
 of TransDigm Inc. 

 This SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”),
dated as of December 9, 2011, by and among Harco Laboratories, Incorporated, a Connecticut corporation (“Harco” or the “Guaranteeing Subsidiary”), TransDigm Inc., a Delaware corporation
(the “Company”), TransDigm Group Incorporated, a Delaware corporation (“TD Group”), Adams Rite Aerospace, Inc., a California corporation (“Adams Rite”), MarathonNorco Aerospace, Inc., a
Delaware corporation (“Marathon”), Champion Aerospace LLC, a Delaware limited liability company (“Champion”), Avionic Instruments LLC, a Delaware limited liability company (“Avionic”), Skurka
Aerospace Inc., a Delaware corporation (“Skurka”), CDA InterCorp LLC, a Florida limited liability company (“CDA”), Aviation Technologies, Inc., a Delaware corporation (“ATI”), Avtech Corporation, a
Washington corporation (“Avtech”), Transicoil LLC, a Delaware limited liability company (“Transicoil”), AeroControlex Group, Inc., a Delaware corporation (“Aerocontrolex”), Malaysian Aerospace
Services, Inc., a Delaware corporation (“Malaysian”), Bruce Aerospace Inc., a Delaware corporation (“Bruce Aerospace”), Bruce Industries, Inc., a Colorado corporation (“Bruce Industries”), CEF
Industries, LLC, a Delaware limited liability company (“CEF”), Aircraft Parts Corporation, a New York corporation (“APC”), Acme Aerospace, Inc., a Delaware corporation (“Acme”), Dukes Aerospace,
Inc., a Delaware corporation (“Dukes”), Semco Instruments, Inc., a Delaware corporation, (“Semco”), Hartwell Corporation, a California corporation (“Hartwell”), McKechnie Aerospace DE, Inc., a
Delaware corporation (“Mckechnie Aerospace DE”), McKechnie Aerospace Holdings, Inc., a Delaware corporation (“McKechnie Aerospace Holdings”), McKechnie Aerospace Investments, Inc., a Delaware corporation
(“McKechnie Aerospace Investments”), McKechnie Aerospace US LLC, a Delaware limited liability company (“McKechnie Aerospace US”), Texas Rotronics, Inc., a Texas corporation (“Rotronics”), Western
Sky Industries, LLC, a Delaware limited liability company (“Western”), Schneller Holdings LLC, a Delaware limited liability company (“Schneller Holdings”), Schneller LLC, a Delaware limited liability company
(“Schneller”) and Schneller International Sales Corp., an Ohio corporation (“Schneller International” and, together with TD Group, Adams Rite, Marathon, Champion, Avionic, Skurka, CDA, ATI, Avtech, Transicoil,
AeroControlex, Malaysian, Bruce Aerospace, Bruce Industries, CEF, APC, Acme, Dukes, Semco, Hartwell, McKechnie Aerospace DE, McKechnie Aerospace Holdings, McKechnie Aerospace Investments, McKechnie Aerospace US, Rotronics, Western, Schneller
Holdings and Schneller, the “Existing Guarantors”), and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) under the Indenture referred to below. Capitalized terms used herein and not
otherwise defined shall have the meaning assigned to them in the Indenture. 
 WITNESSETH: 

WHEREAS, the Company and the Existing Guarantors have heretofore executed and delivered to the Trustee an indenture, dated as of
December 14, 2010 (as supplemented by the First Supplemental Indenture thereto, dated as of September 22, 2011, the “Indenture”), providing for the issuance by the Company of 7.75% Senior Subordinated Notes due 2018
(the “Notes”) and the guarantees thereof by each of the Existing Guarantors; 
 WHEREAS, the
Indenture provides that under certain circumstances described therein, newly created or acquired Domestic Restricted Subsidiaries shall execute and deliver to the Trustee a supplemental indenture to the Indenture providing for a senior subordinated
guarantee of payment of the Notes by such Domestic Restricted Subsidiary (the “Guarantee”); 
 WHEREAS,
all things necessary to make this Supplemental Indenture the legal, valid and binding obligation of the Company, the Existing Guarantors and the Guaranteeing Subsidiary have been done; and 

WHEREAS, pursuant to Section 9.01(g) of the Indenture, the Trustee is authorized to execute and deliver this Supplemental
Indenture without the consent of the Holders of the Notes. 
 NOW, THEREFORE, in consideration of the foregoing and for
other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary covenants and agrees for the equal and ratable benefit of the Holders of the Notes as follows: 

 

	 	1.	CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 

 

	 	2.	 GUARANTEE, ETC. The Guaranteeing Subsidiary hereby agrees that from and after the date hereof it shall be a Guarantor under the Indenture and be
bound by the terms thereof applicable to Guarantors and 

  
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shall be entitled to all of the rights and subject to all the obligations of a Guarantor thereunder. 

  

	 	3.	RATIFICATION OF INDENTURE; SUPPLEMENTAL INDENTURE PART OF INDENTURE. The Indenture is in all respects ratified and confirmed and all the terms, conditions and
provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

  

	 	4.	EXECUTION AND DELIVERY. The Guaranteeing Subsidiary agrees that the Guarantee granted by it pursuant to the terms hereof shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such Guarantee. 

  

	 	5.	NO RECOURSE AGAINST OTHERS. No past, present or future director, officer, employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary (or any
successor entity) (other than the Company or the Existing Guarantors), as such, shall have any liability for any obligations of the Company, TD Group, the Guaranteeing Subsidiary or any other Guarantor under the Notes, any Guarantee, the Indenture
or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. 

  

	 	6.	NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE AND THE GUARANTEE GRANTED
HEREUNDER WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

 

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

  

	 	8.	EFFECT OF HEADINGS. The Section headings have been inserted for convenience of reference only, are not to be considered part of this Supplemental Indenture and
shall in no way modify or restrict any of the terms or provisions hereof. 

  

	 	9.	THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for
or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary, the Existing Guarantors and the Company. 

  
 -3-

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be
duly executed as of the date hereof. 
  

			
	TRANSDIGM INC.
		
	By:	 	/s/ Gregory Rufus
	 Name:
 Title:
	 	 Gregory Rufus

Executive Vice President and Chief Financial Officer

  

			
	TRANSDIGM GROUP INCORPORATED
		
	By:	 	/s/ Gregory Rufus
	 Name:
 Title:
	 	 Gregory Rufus

Executive Vice President and Chief Financial Officer

	
	 ACME AEROSPACE, INC.

ADAMS RITE AEROSPACE, INC.
 AEROCONTROLEX GROUP,
INC.
 AIRCRAFT PARTS CORPORATION

AVIATION TECHNOLOGIES, INC.
 AVTECH
CORPORATION
 BRUCE AEROSPACE INC.

BRUCE INDUSTRIES, INC.
 DUKES AEROSPACE,
INC.
 HARTWELL CORPORATION
 HARCO
LABORATORIES, INCORPORATED
 MALAYSIAN AEROSPACE SERVICES, INC.
 MARATHONNORCO AEROSPACE, INC.
 MCKECHNIE AEROSPACE DE, INC.

MCKECHNIE AEROSPACE HOLDINGS, INC.

MCKECHNIE AEROSPACE INVESTMENTS, INC.
 MCKECHNIE AEROSPACE US LLC

            By: McKechnie Aerospace DE, Inc., its sole member

SCHNELLER INTERNATIONAL SALES CORP.
 SEMCO
INSTRUMENTS, INC.
 SKURKA AEROSPACE INC.

TEXAS ROTRONICS, INC.

	TRANSICOIL LLC
	            By: Aviation Technologies, Inc., its sole member
	 WESTERN SKY INDUSTRIES, LLC

	             By: McKechnie Aerospace Investments,
Inc.,

                   
 its sole member

		
	By:	 	/s/ Gregory Rufus
	 Name:
 Title:
	 	 Gregory Rufus

Treasurer and Secretary

	
	 AVIONIC INSTRUMENTS LLC
 CDA INTERCORP LLC
 CEF INDUSTRIES, LLC
 CHAMPION AEROSPACE LLC
 SCHNELLER HOLDINGS LLC

SCHNELLER LLC

	          By: Schneller Holdings LLC, its sole member
		
	By:	 	TransDigm Inc., its sole member
		
	By:	 	/s/ Gregory Rufus
	 Name:
 Title:
	 	 Gregory Rufus Executive

Vice President and Chief Financial Officer

  
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	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., AS TRUSTEE
		
	By:	 	/s/ Richard Tarnas
	 Name:
 Title:
	 	 R. Tarnas
 Vice
President

  
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