Document:

Non-qualified Stock Option Agreement for Senior Vice Presidents and Above

 Exhibit 10.5 
  
 ON SEMICONDUCTOR CORPORATION 
 2000 STOCK INCENTIVE PLAN 
 NON-QUALIFIED STOCK OPTION AGREEMENT 
  
 (Form of Agreement for Senior Vice Presidents and Above) 
  
 This Option Agreement is made and entered into by and between ON
Semiconductor Corporation (“Company”) and                      (“Optionee”), as of the
             day of                     ,
20     (“Date of Grant”). 
  
 RECITALS 
  
 A. The Board of Directors of
the Company has adopted the ON Semiconductor Corporation (formerly known as SCG Holding Corporation) 2000 Stock Incentive Plan, as amended from time-to-time (the “Plan”), as an incentive to retain key employees, officers, and consultants
of the Company and to enhance the ability of the Company to attract new employees, officers and consultants whose services are considered unusually valuable by providing an opportunity for them to have a proprietary interest in the success of the
Company. 
  
 B. The Board has approved the granting of
options to the Optionee pursuant to the Plan to provide an incentive to the Optionee to focus on the long-term growth of the Company. 
  
 C. To the extent not specifically defined herein or in the Optionee’s Employment Agreement dated
                             , 20     (“Employment
Agreement”), all capitalized terms used in this Option Agreement shall have the meaning set forth in the Plan. 
  
 In consideration of the mutual covenants and conditions hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Optionee agree as follows: 
  
 1. Grant of Option. The Company hereby grants to the Optionee the right and option (hereinafter referred to as the “Option”) to purchase an aggregate of
                     shares (such number being subject to adjustment as provided in paragraph 11 hereof and Section 14 of the Plan) of
the Common Stock of the Company (the “Stock”) on the terms and conditions herein set forth. This Option may be exercised in whole or in part and from time to time as hereinafter provided. The Option granted under this Agreement is
not intended to be an “incentive stock option” as set forth in Section 422 of the Internal Revenue Code of 1986, as amended. 
  
 2. Vesting of Option. The Option shall vest and become exercisable in accordance with the schedule below, subject to paragraph 8 hereof and
the Plan: 
  
 25% of the Option grant shall
become exercisable on                              , 20    ;

  
 25% of the Option grant shall become
exercisable on                              , 20    ;

  
 25% of the Option grant shall become
exercisable on                              , 20    ; and

  
 25% of the Option grant shall become
exercisable on                              , 20    .

 3. Purchase Price. The price at which the Optionee shall be entitled to purchase the Stock
covered by the Option shall be $        .     per share (i.e., the closing price of the Company’s common stock on
                    ). 
  
 4. Term of Option. The Option granted under this Option Agreement shall expire, unless otherwise exercised, ten (10) years from the Date of
Grant, through and including the normal close of business of the Company on                     
         , 20     (“Expiration Date”), subject to earlier termination as provided in paragraph 8 hereof. 
  
 5. Exercise of Option. The Option may be exercised by the
Optionee as to all or any part of the Stock then vested by delivery to the Company of written notice of exercise and payment of the purchase price as provided in paragraphs 6 and 7 hereof. 
  
 6. Method of Exercising Option. Subject to the terms and
conditions of this Option Agreement, the Option may be exercised by timely delivery to the Company of written notice, which notice shall be effective on the date received by the Company (“Effective Date”). The notice shall state the
Optionee’s election to exercise the Option, the number of shares in respect of which an election to exercise has been made, the method of payment elected (see paragraph 7 hereof), the exact name or names in which the shares will be registered
and the Social Security number of the Optionee. Such notice shall be signed by the Optionee and shall be accompanied by payment of the purchase price of such shares. In the event the Option shall be exercised by a person or persons other than
Optionee pursuant to paragraph 8 hereof, such notice shall be signed by such other person or persons and shall be accompanied by proof acceptable to the Company of the legal right of such person or persons to exercise the Option. All shares
delivered by the Company upon exercise of the Option shall be fully paid and nonassessable upon delivery. 
  
 7. Method of Payment for Options. Payment for shares purchased upon the exercise of the Option shall be made by the Optionee in cash,
previously-acquired Stock held for more than six (6) months (through actual tender or by attestation), broker-assisted cashless exercise arrangement, or such other method permitted by the Board and communicated to the Optionee in writing prior to
the date the Optionee exercises all or any portion of the Option. 
  
 8. Termination of Employment or Services. 
  
 8.1 General. Subject to the provisions of paragraph 8.2 below, if the Optionee terminates employment or otherwise ceases to perform services for the Company for any reason other than death or Disability, then the Optionee may at any
time within ninety (90) days after the effective date of termination of employment or services exercise the Option to the extent that the Optionee was entitled to exercise the Option at the Date of Termination, provided that the Option shall lapse
immediately upon a termination for Cause. In no event shall the Option be exercisable after the Expiration Date. 
  
 8.2 Change of Control. In the event the Company terminates the Optionee’s employment without Cause (including a deemed termination for Good
Reason) within two (2) years following a Change in Control, then, (i) any outstanding but unvested portion of the Option granted pursuant to this Option Agreement shall vest upon the Date of Termination; and (ii) the Option shall remain fully
exercisable until the first to occur of (1) the one-year anniversary of the Date of Termination, and (2) the tenth anniversary of the Date of 

  

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Grant of the Option; provided, however, that if the Company determines in good faith that the extension of this exercise period for the Option
results in the Option being considered deferred compensation subject to Section 409A of the Internal Revenue Code, such extension shall not take effect. 
  
 8.3 Death or Disability of Optionee. In the event of the death or Disability of the Optionee within a period during which the Option, or any part
thereof, could have been exercised by the Optionee, including ninety (90) days after termination of employment or services (the “Option Period”), the Option shall lapse unless it is exercised within the Option Period and in no event later
than twelve (12) months after the date of the Optionee’s death or Disability by the Optionee or the Optionee’s legal representative or representatives in the case of a Disability or, in the case of death, by the person or persons entitled
to do so under the Optionee’s last will and testament or if the Optionee fails to make a testamentary disposition of such Option or shall die intestate, by the person or persons entitled to receive such Option under the applicable laws of
descent and distribution. An Option may be exercised following the death or Disability of the Optionee only if the Option was exercisable by the Optionee immediately prior to his death or Disability. In no event shall the Option be exercisable after
the Expiration Date. The Board shall have the right to require evidence satisfactory to it of the rights of any person or persons seeking to exercise the Option under this paragraph 8 to exercise the Option. 
  
 9. Nontransferability. The Option granted by this Option
Agreement shall be exercisable only during the term of the Option provided in paragraph 4 hereof and, except as provided in paragraph 8 above, only by the Optionee during his lifetime and while an Optionee of the Company. Except as otherwise
permitted by the Committee, this Option shall not be transferable by the Optionee or any other person claiming through the Optionee, either voluntarily or involuntarily, except by will or the laws of descent and distribution. 
  
 10. Market Stand-off Agreement. The Optionee, if requested by
the Company and an underwriter of Stock (or other securities) of the Company, agrees not to sell or otherwise transfer or dispose of any Stock (or other securities) of the Company held by the Optionee during the period not to exceed one-hundred
eighty (180) days as requested by the managing underwriter following the effective date of a registration statement of the Company filed under the Securities Act. Such agreement shall be in writing in a form satisfactory to the Company and such
underwriter. The Company may impose stop transfer instructions with respect to the Stock (or other securities) subject to the foregoing restriction until the end of such project. 
  
 11. Adjustments in Number of Shares and Option Price. In the event of a stock dividend or in the event the
Stock shall be changed into or exchanged for a different number or class of shares of stock of the Company or of another corporation, whether through reorganization, recapitalization, stock split-up, combination of shares, merger or consolidation,
there shall be substituted for each such remaining share of Stock then subject to this Option the number and class of shares of stock into which each outstanding share of Stock shall be so exchanged, all without any change in the aggregate purchase
price for the shares then subject to the Option, all as set forth in Section 14 of the Plan. 
  
 12. Delivery of Shares. No shares of Stock shall be delivered upon exercise of the Option until (i) the purchase price shall have been paid in full in the manner herein provided; (ii) applicable taxes
required to be withheld have been paid or withheld in full; (iii) 

  

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approval of any governmental authority required in connection with the Option, or the issuance of shares thereunder, has been received by the Company; and
(iv) if required by the Board, the Optionee has delivered to the Board an Investment Letter in form and content satisfactory to the Company as provided in paragraph 13 hereof. 
  
 13. Securities Act. The Company shall not be required to deliver any shares of Stock pursuant to the exercise
of all or any part of the Option if, in the opinion of counsel for the Company, such issuance would violate the Securities Act of 1933 or any other applicable federal or state securities laws or regulations. The Board may require that the Optionee,
prior to the issuance of any such shares pursuant to exercise of the Option, sign and deliver to the Company a written statement (“Investment Letter”) stating (i) that the Optionee is purchasing the shares for investment and not with a
view to the sale or distribution thereof; (ii) that the Optionee will not sell any shares received upon exercise of the Option or any other shares of the Company that the Optionee may then own or thereafter acquire except either (a) through a broker
on a national securities exchange or (b) with the prior written approval of the Company; and (iii) containing such other terms and conditions as counsel for the Company may reasonably require to assure compliance with the Securities Act of 1933 or
other applicable federal or state securities laws and regulations. Such Investment Letter shall be in form and content acceptable to the Board in its sole discretion. 
  
 14. Definitions; Copy of Plan. To the extent not specifically provided herein, all capitalized terms used in
this Option Agreement shall have the same meanings ascribed to them in the Plan. By the execution of this Agreement, the Optionee acknowledges receipt of a copy of the Plan. 
  
 15. Administration. This Option Agreement shall at all times be subject to the terms and conditions of the
Plan and the Plan shall in all respects be administered by the Board in accordance with the terms of and as provided in the Plan. The Board shall have the sole and complete discretion with respect to all matters reserved to it by the Plan and
decisions of the majority of the Board with respect thereto and to this Option Agreement shall be final and binding upon the Optionee and the Company. In the event of any conflict between the terms and conditions of this Option Agreement and the
Plan, the provisions of the Plan shall control. 
  
 16.
Continuation of Employment or Services. This Option Agreement shall not be construed to confer upon the Optionee any right to continue in the employ of, or providing services to, the Company and shall not limit the right of the Company,
in its sole discretion, to terminate the employment or services of the Optionee at any time. 
  
 17. Obligation to Exercise. The Optionee shall have no obligation to exercise any option granted by this Agreement. 
  
 18. Governing Law. This Option Agreement shall be interpreted and administered under the laws of the State of
Delaware. 
  
 19. Amendments. This Option Agreement
may be amended only by a written agreement executed by the Company and the Optionee. The Company and the Optionee acknowledge that changes in federal tax laws enacted subsequent to the Date of Grant, and applicable to stock options, may provide for
tax benefits to the Company or the Optionee. In any such event, the Company and the Optionee agree that this Option Agreement may be amended as 

  

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necessary to secure for the Company and the Optionee any benefits that may result from such legislation. Any such amendment shall be made only upon the
mutual consent of the parties, which consent (of either party) may be withheld for any reason. 
  
 (Remainder of this page intentionally left blank) 
  

 5 

 IN WITNESS WHEREOF, the Company has caused this Option Agreement to be signed by its duly authorized
representative and the Optionee has signed this Option Agreement as of the date first written above. 
  

	
	 ON SEMICONDUCTOR CORPORATION

	
	 By:                                      
                                        
                  

	 Name:                                     
                                        
             

	 Its:
                                        
                                        
                

	
	                                       
                                     
 (OPTIONEE)

	
	 By:                                      
                                        
                  

  

 6Second Supplemental Indenture, dated as of February 10, 2005

 Exhibit 10.1 
  
 TRANSDIGM INC., 
  
 THE GUARANTORS named herein 
  
 and 
  
 THE BANK OF NEW YORK, as Trustee 
  

  
 SECOND SUPPLEMENTAL INDENTURE 
  
 Dated as of February 10, 2005 
  
 To 
  
 Indenture Dated as of July 22, 2003 By and Among 
  
 TRANSDIGM INC., 
  
 the GUARANTORS named therein and 
  
 THE BANK OF NEW YORK, as Trustee 
  

  
 Pursuant to which there were issued $400,000,000 of

  
 8 3/8% Senior Subordinated Notes due 2011 
  
 of TransDigm Inc. 
  

 SECOND SUPPLEMENTAL INDENTURE 
  
 SECOND SUPPLEMENTAL INDENTURE (this “SUPPLEMENTAL INDENTURE”), dated as of February 10, 2005, among Avionic
Instruments Inc., a Delaware corporation and a wholly-owned subsidiary of TransDigm Inc. (“AVIONIC”), DAC Realty Corp., a New Jersey corporation and a wholly-owned subsidiary of TransDigm Inc. (“DAC” and, together with Avionic,
the “GUARANTEEING SUBSIDIARIES” and each such subsidiary is referred to herein as a “GUARANTEEING SUBSIDIARY”), TransDigm Inc., a Delaware corporation and the successor by merger to TD Funding Corporation (the
“COMPANY”), TransDigm Holding Company, a Delaware corporation and the successor by merger to TD Acquisition Corporation (“HOLDINGS”), Adams Rite Aerospace, Inc., a California corporation (“ADAMS RITE”), ZMP, Inc., a
California corporation (“ZMP”), MarathonNorco Aerospace, Inc., a Delaware corporation (“MARATHON”), Christie Electric Corp., a Delaware corporation (“CHRISTIE”), TD Finance Corporation, a Delaware corporation (“TD
FINANCE”), and Champion Aerospace, Inc., a Delaware corporation (“CHAMPION” and, together with the Guaranteeing Subsidiaries, Holdings, Adams Rite, ZMP, Marathon, Christie and TD Finance, the “GUARANTORS”), and The Bank of
New York, as trustee under the indenture referred to below (the “TRUSTEE”). 
  
 W I T N E S S E T H 
  
 WHEREAS,
the Company, Holdings, Adams Rite, ZMP, Marathon, Christie and Champion have heretofore executed and delivered to the Trustee an indenture (the “INDENTURE”), dated as of July 22, 2003 providing for the issuance by the Company of an
aggregate principal amount of up to $400 million of 8 3/8% Senior Subordinated Notes due 2011 (the
“NOTES”) and the guarantees thereof by Holdings, Adams Rite, ZMP, Marathon, Christie and Champion; 
  
 WHEREAS, the Company, Holdings, Adams Rite, ZMP, Marathon, Christie, Champion and TD Finance have heretofore executed and delivered to the Trustee the
First Supplemental Indenture (the “FIRST SUPPLEMENTAL INDENTURE”), dated as of October 13, 2003, to the Indenture, pursuant to which, and subject to the terms and conditions set forth therein, TD Finance agreed to provide a senior
subordinated guarantee of payment of the Notes issued by the Company under the Indenture; 
  
 WHEREAS, the Indenture provides that under certain circumstances newly created or acquired Domestic Restricted Subsidiaries of the Company shall execute and deliver to the Trustee a supplemental indenture providing
for a senior subordinated guarantee of payment of the Notes by such New Domestic Subsidiary (the “SUBSIDIARY GUARANTEE”); and 
  
 WHEREAS, pursuant to Section 9.01(g) of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture. 
  
 NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, each 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. Each Guaranteeing Subsidiary hereby agrees that on the effective date of this Supplemental Indenture it shall be a Guarantor under the Indenture and be bound by the terms thereof applicable to Guarantors and shall be entitled to all
of the rights and subject to all the obligations of a Guarantor thereunder. 
  
 3. EXECUTION AND DELIVERY. Each Guaranteeing Subsidiary agrees that the Subsidiary 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. 
  
 4. NO RECOURSE AGAINST
OTHERS. No past, present or future director, officer, employee, incorporator, stockholder or agent of any Guaranteeing Subsidiary (or any successor entity), as such, shall have any liability for any obligations of the Company, such Guaranteeing
Subsidiary or any other Guarantor under the Notes, any Guarantee, the Indenture, the First Supplemental 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. 
  

5. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE 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. 
  
 6. 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. 
  
 7. 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. 
  
 8. 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 Subsidiaries and the Company. 

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

			
	TRANSDIGM INC.
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	VP and Chief Financial Officer
	
	TRANSDIGM HOLDING COMPANY
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	VP and Chief Financial Officer
	
	TD FINANCE CORPORATION
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	VP and Treasurer
	
	ADAMS RITE AEROSPACE, INC.
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	Treasurer and Asst. Secretary
	
	ZMP, INC.
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	Treasurer and Asst. Secretary
	
	MARATHONNORCO AEROSPACE, INC.
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	Treasurer and Asst. Secretary
	
	CHRISTIE ELECTRIC CORP.
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	Treasurer and Asst. Secretary

			
	CHAMPION AEROSPACE, INC.
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	Treasurer and Asst. Secretary
	
	AVIONIC INSTRUMENTS INC.
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	Treasurer and Asst. Secretary
	
	DAC REALTY CORP.
		
	By:	 	 /s/ Gregory Rufus

	Name:	 	Gregory Rufus
	Title:	 	Treasurer and Asst. Secretary
	
	THE BANK OF NEW YORK, as Trustee
		
	By:	 	 /s/ Joseph A. Lloret

	Name:	 	Joseph A. Lloret
	Title:	 	Assistant Secretary

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