Document:

EXHIBIT
4.5

TRANSDIGM INC.,

THE GUARANTORS named herein

and

THE BANK OF NEW YORK, as Trustee

_____________________

 

FIRST SUPPLEMENTAL INDENTURE

Dated as of October 9, 2003

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.

_____________________

 

 

FIRST SUPPLEMENTAL INDENTURE

FIRST SUPPLEMENTAL INDENTURE
(this “SUPPLEMENTAL INDENTURE”), dated as of October 9, 2003, among TD Finance
Corporation, a Delaware corporation and a wholly-owned subsidiary of TransDigm
Inc. (the “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”), Marathon Power Technologies Company, a Delaware corporation
(“MARATHON”), Christie Electric Corp., a Delaware corporation (“CHRISTIE”), and
Champion Aerospace, Inc., a Delaware corporation (“CHAMPION” and, together with
the Guaranteeing Subsidiary, Holdings, Adams Rite, ZMP, Marathon and Christie,
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 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, 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 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.

 

2

 

3.  EXECUTION AND DELIVERY. The Guaranteeing
Subsidiary agrees that the Subsidiary Guarantee 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
the Guaranteeing Subsidiary (or any successor entity), as such, shall have any
liability for any obligations of the Company, 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.

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
Subsidiary and the Company.

 

3

 

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

 

	
   

  	
  TRANSDIGM INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title: Vice President & Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
  TRANSDIGM HOLDING COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title: Vice President & Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
  TD FINANCE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title: Vice President & Treasurer

  
	
   

  	
   

  
	
   

  	
  ADAMS RITE AEROSPACE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title: Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  ZMP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title: Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  MARATHON POWER TECHNOLOGIES COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title: Treasurer & Assistant Secretary

  
	
   

  	
   

  
	
   

  	
  CHRISTIE ELECTRIC CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title: Treasurer & Assistant Secretary

  

 

4

 

	
   

  	
   

  	
   

  
	
   

  	
  CHAMPION AEROSPACE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
   

  	
   

  	
  Name: Gregory Rufus

  
	
   

  	
   

  	
  Title: Treasurer & Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joseph A. Lloret

  
	
   

  	
   

  	
  Name: Joseph A. Lloret

  
	
   

  	
   

  	
  Title: Assistant Treasurer

  
				

 

 

5EXHIBIT
10.15

 

TAX SHARING AGREEMENT

THIS
AGREEMENT (this “Agreement”) made
and entered into as of July 22, 2003, by and among TD Holding Corporation, a
Delaware corporation (“TD Holding”),
TransDigm Holding Company, a Delaware  corporation
and direct wholly-owned subsidiary of TD Holding (“TDHC”), TransDigm Inc., a Delaware  corporation and direct wholly-owned subsidiary of TDHC (“TransDigm”), and such direct and indirect
subsidiaries of TD Holding that are listed on Exhibit A hereto from time
to time (collectively with TDHC and TransDigm, the “Subsidiaries” and each individually, a “Subsidiary”).

WITNESSETH:

WHEREAS,
TD Holding and each of the Subsidiaries qualifies as an “includible
corporation” within the meaning of Section 1504(b) of the Code (as defined below);

WHEREAS,
the TransDigm Group (as defined below) qualifies as an “affiliated group”
within the meaning of Section 1504(a) of the Code;

WHEREAS,
TD Holding is the common parent corporation of the TransDigm Group; and

WHEREAS,
the TransDigm Group desires to take advantage of the tax savings that may
result from the filing of U.S. federal income tax returns on a consolidated
basis, in accordance with Sections 1501 et
seq. of the Code and the Treasury Regulations promulgated
thereunder.

NOW,
THEREFORE, in consideration of the covenants, agreements, terms and conditions
contained herein, and for other good, valid and binding consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

SECTION 1.  Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings.

“Code” shall mean the
Internal Revenue Code of 1986, as amended.

“Fiscal Year” shall mean
the annual accounting period of TD Holding and any other Member.

“Interim Payments” shall
have the meaning set forth in Section 3(b) of this Agreement.

“Member” shall mean a
member (as defined in Treasury Regulations Section 1.1502-1(b)), of the
TransDigm Group.

“Separate Return Liability”
shall mean, with respect to any Subsidiary for any Fiscal Year, the U.S.
federal income taxes (including any minimum tax or alternative minimum tax)
that would be payable by such Subsidiary to the U.S. Treasury had the 

 

Subsidiary filed a separate
income tax return for that Fiscal Year based on the Subsidiary’s Separate
Taxable Income for that Fiscal Year.

“Separate Taxable Income”
shall mean, with respect to any Subsidiary for any Fiscal Year, the income,
gains, losses, deductions and credits of such Subsidiary for that Fiscal Year
calculated as follows:  (i) any
dividends received by one Member from another Member will be assumed to qualify
for the 100% dividends received deduction of Section 243 of the Code or shall
otherwise be eliminated from such calculation; (ii) gain or loss on
intercompany transactions, whether or not deferred, shall be treated by each
Member in the manner required by Treasury Regulations Section 1.1502-13;
(iii) limitations on the calculation of a deduction or the utilization of tax
credits or the calculation of a tax liability shall be made on a consolidated
basis; (iv) net operating losses and credits of a Subsidiary shall be
treated as available to such Subsidiary in determining such Subsidiary’s
Separate Taxable Income, and shall not be reduced even if such net operating
losses or credits are used in determining the consolidated taxable income of
the TransDigm Group, instead, such net operating losses and credits shall be
reduced only if, when and to the extent used in determining the Separate
Taxable Income of the Subsidiary; and (v) elections relating to tax
credits and tax computations that differ from the consolidated treatment if
separate returns were filed shall be made on an annual basis by TD Holding.

“Subsidiary” and “Subsidiaries” shall have the meanings set
forth in the heading of this Agreement.

“Tax Payment Amount”
shall mean, with respect to any Subsidiary for any Fiscal Year, an amount equal
to the lesser of:

                                                (i) the
Subsidiary’s Separate Return Liability for that Fiscal Year; or

                                                (ii) the
product of (a) TransDigm Group’s actual consolidated U.S. federal tax
liability for such Fiscal Year and (b) a fraction, the numerator of which
is such Subsidiary’s Separate Return Liability for that Fiscal Year and the
denominator of which is the sum of each Subsidiaries’ Separate Return Liability
for that Fiscal Year.

“TDHC” shall have the
meaning set forth in the heading of this Agreement.

“TD Holding” shall have
the meaning set forth in the heading of this Agreement.

“TransDigm” shall have the meaning set forth in the heading of this
Agreement.

“TransDigm  Group”
shall mean the affiliated group of corporations consisting of TD Holding, as
the common parent, and each of the Subsidiaries.

SECTION 2.  Consent to
Filing of Consolidated Return.

(a)           TD Holding shall
file a consolidated U.S. federal income tax return, and pay to the U.S.
Treasury any taxes due thereon, on behalf of the TransDigm Group for the
taxable year 

 

2

ending September 30, 2003, and for each
subsequent taxable period for which this Agreement is in effect and for which
the TransDigm Group is required or permitted to file a consolidated tax return;
provided, that TD Holding shall not be liable for any taxes attributable
to a Subsidiary if such Subsidiary has not complied with its tax payment
requirements as set forth in Section 3 hereof. 
Each Subsidiary shall execute and file such consents, elections and
other documents that may be required or appropriate for the proper filing of
such returns.

(b)           Each corporation
that, subsequent to the date of this Agreement, becomes a Member shall be added
to the list of Subsidiaries contained in Exhibit A hereto.  TransDigm (or the applicable Member that is
the direct parent corporation of such Subsidiary) shall cause each of the
Subsidiaries listed on Exhibit A hereto, as amended from time to time,
to become a party hereto by executing this Agreement in counterpart.

SECTION 3.  Tax Payments.

(a)           Each Subsidiary
shall make payments to TD Holding with respect to each Fiscal Year equal to its
respective Tax Payment Amount for such Fiscal Year.  Such payments shall be made in the manner set forth in paragraphs
(b) and (c) below.

(b)           From time to time
during the Fiscal Year each Subsidiary shall make interim payments (“Interim
Payments”) to TD Holding with respect to its Tax Payment
Amount (i) pursuant to the schedule set forth in Section 6655(c) of the
Code and (ii) calculated under the principles Section 6655(d) of the
Code.  Interim Payments shall be made no
later than 5 calendar days prior to the due date of the relevant estimated tax
payment.

(c)           If a Subsidiary’s
Tax Payment Amount for a particular Fiscal Year is greater than its aggregate
Interim Payments with respect to such Fiscal Year, then such Subsidiary shall
pay to TD Holding the excess of its Tax Payment Amount over its aggregate
Interim Payments at least five calendar days before TD Holding files the
TransDigm Group’s consolidated U.S. federal income tax return in respect of
such Fiscal Year.  If a Subsidiary’s
aggregate Interim Payments for a particular Fiscal Year exceed its Tax Payment
Amount with respect to such Fiscal Year, such excess shall be allowed as a
credit to the Subsidiary in respect of the Interim Payment next due from that
Subsidiary to TD Holding.

                (d)           To the extent that any Subsidiary
distributes cash from operations to any other Subsidiary as a dividend at any
time during any Fiscal Year, whether pursuant to a periodic “cash sweep”
program or otherwise, such distributions shall be credited toward the payment
obligations of such Subsidiary under this Section 3.

                (e)           To the extent that any Subsidiary
makes any payment of taxes directly to the U.S. Treasury in satisfaction of the
obligations of TD Holdings, such payment shall be treated as a payment by such
Subsidiary to TD Holdings pursuant to this Section 3, followed by a payment by
TD Holdings to the U.S. Treasury pursuant to Section 2 of this Agreement.

SECTION 4.  Adjustments to
the Tax Payment Amount.

(a)           If for any Fiscal
Year the Internal Revenue Service makes an upward adjust to, or TD Holding
files an amended return resulting in an upward adjustment of, the TransDigm 

 

3

Group’s consolidated U.S. federal income tax
liability with respect to such Fiscal Year, then each Subsidiary shall pay to
TD Holding an amount equal to the excess of the Tax Payment Amount for such
Fiscal Year, as adjusted, over the Tax Payment Amount for such Fiscal Year paid
to date.  In the event of a downward
adjustment, the excess of a Subsidiary’s Tax Payment Amount for such Fiscal
Year paid to date over its Tax Payment Amount, as adjusted, shall be allowed as
a credit to the Subsidiary in respect of the Interim Payment next due from that
Subsidiary to TD Holding under Section 3 of this Agreement.

(b)           The payments
required under this Section 4 shall be made promptly after a “determination”
(as defined in Section 1313(a) of the Code) in respect of the amount at issue; provided,
however, that payments in the case of the filing of an amended return
shall be made promptly upon such filing.

SECTION 5.  Interest
Payments.  Interest
will be paid pursuant to this Agreement only with respect to payments required
to be made by a Subsidiary as a result of any adjustment or redetermination of
income by the Internal Revenue Service or in the case of a filing of an amended
return.  Such interest will be
calculated at the applicable overpayment or underpayment rate and shall
otherwise be determined in the same manner as would be determined by the
Internal Revenue Service.

SECTION 6.  Appointment of
TD Holding as Agent.  Each
Subsidiary hereby appoints TD Holding its agent with full power to act on its
behalf in all matters concerning the consolidated U.S. federal income tax
returns filed on behalf of the TransDigm Group, including the preparation and
filing of such returns (including any amendments thereto), making or revoking
all elections with respect thereto, negotiating and settling any audit, examination
or administrative proceeding with respect to such tax returns, and commencing
and prosecuting any judicial proceeding related to such tax returns.

SECTION 7.  State Tax
Returns.  The provisions of this
Agreement shall apply, as appropriately adjusted, to any Members filing
combined, consolidated, unitary or similar income or franchise returns for
state tax purposes.

SECTION 8.  Miscellaneous.

(a)           This Agreement and
any provision hereof may be amended, waived, discharged or terminated only by
an instrument in writing signed by the party against whom enforcement of the
amendment, waiver, discharge or termination is sought.

(b)           This Agreement shall
constitute the entire agreement between the parties concerning the subject
matter hereof and shall supersede any prior agreements and understandings
between or among the parties with respect to the subject matter hereof.

(c)           The validity,
interpretation and enforceability of this Agreement shall be governed in all
respects by the laws of the State of New York, without regard to conflict of
law principles.

(d)           Failure of any party
at any time to require the other party’s performance of any obligation under
this Agreement shall not affect the right to require performance of that 

 

4

 

obligation. Any waiver by any party of any
breach of any provision of this Agreement shall not be construed as a waiver of
any continuing or succeeding breach of such provision, a waiver or modification
of the provision itself, or a waiver of any right under this Agreement.

(e)           Section and other
headings contained in this Agreement are for reference purposes only and are in
no way intended to describe, interpret, define or limit the scope, extent or
intent of this Agreement or of any provision hereof.

(f)            Every provision of
this Agreement is intended to be severable. 
If any term or provision hereof is determined to be illegal or invalid
for any reason whatsoever, such illegality or invalidity shall not affect the
validity of the remainder of this Agreement.

(g)           This Agreement may
be executed in multiple counterparts, each of which shall be deemed an original
and all of which together shall constitute one agreement.  The signatures of any party to any such
counterpart shall be deemed to be a signature to, and may be appended to, any
other counterpart.

(h)           This Agreement and
all of the provisions hereof shall be binding upon and inure to the benefit of,
and be enforceable by, the parties hereto and their respective successors and
permitted assigns, but neither this Agreement nor any of the rights, interests
or obligations herein shall be assigned by any party hereto without the prior
written consent of the other parties hereto.

(i)            Matters of
interpretation and calculations under this Agreement shall be made in good
faith by TD Holding.

(j)            Upon request by TD
Holding, each Subsidiary shall pay to TD Holding, no later than the due date of
the next Interim Payment due following such request, such Subsidiary’s pro
rata share of (i) amounts expended by TD Holding in connection with the
determination of the tax liability of the TransDigm Group and the preparation
of necessary tax return filings and (ii) amounts expended by TD Holding in
determining amounts due pursuant to this Agreement.

 

5

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first set forth above.

	
  TD HOLDING CORPORATION

  	
   

  	
  TRANSDIGM HOLDING COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gregory Rufus

  	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
  Name: 

  	
  Gregory Rufus

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRANSDIGM INC.

  	
   

  	
  MARATHON POWER TECHNOLOGIES COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gregory Rufus

  	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
  Name:

  	
  Gregory Rufus

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ZMP, INC.

  	
   

  	
  CHAMPION AEROSPACE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gregory Rufus

  	
   

  	
  By:

  	
  /s/ Gregory Rufus 

  
	
  Name:

  	
  Gregory Rufus

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADAMS RITE AEROSPACE, INC.

  	
   

  	
  CHRISTIE ELECTRIC CORP.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gregory Rufus 

  	
   

  	
  By:

  	
  /s/ Gregory Rufus

  
	
  Name:

  	
  Gregory Rufus 

  	
   

  	
  Name:

  	
  Gregory Rufus

  
	
  Title:

  	
  Chief Financial Officer

  	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

 

 

EXHIBIT A

 

Marathon
Power Technologies Company, a Delaware corporation

ZMP,
Inc., a California corporation

Adams
Rite Aerospace, Inc., a California corporation

Champion
Aerospace, Inc., a Delaware corporation

Christie
Electric Corp., a California corporation

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