x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||
For the quarterly period ended September 25, 2009 | ||||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||
For the transition period from to |
Delaware
|
13-3937434 and 13-3937436 | |
(State or other jurisdiction of
incorporation or organization) 600 Third Avenue, New York, NY (Address of principal executive offices) |
(I.R.S. Employer
Identification Nos.) 10016 (Zip Code) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
13
32
35
36
ITEM 1.
FINANCIAL
STATEMENTS
AND L-3 COMMUNICATIONS CORPORATION
(in millions, except share data)
September 25,
December 31,
2009
2008
$
1,191
$
867
1,270
1,226
2,398
2,267
258
259
169
211
127
131
5,413
4,961
838
821
8,188
8,029
390
417
35
44
204
212
$
15,068
$
14,484
LIABILITIES AND EQUITY
$
650
$
593
602
674
700
525
479
499
530
30
45
336
351
3,307
2,707
844
802
179
127
424
414
3,860
4,493
8,614
8,543
4,345
4,136
(1,715
)
(1,319
)
3,922
3,373
(190
)
(332
)
6,362
5,858
92
83
6,454
5,941
$
15,068
$
14,484
1
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
(in millions, except per share data)
Third Quarter Ended
September 25,
September 26,
2009
2008
$
1,810
$
1,752
2,032
1,910
3,842
3,662
1,586
1,561
1,838
1,701
3,424
3,262
418
400
3
7
68
72
353
335
100
123
$
253
$
212
3
2
$
250
$
210
2
3
$
248
$
207
$
2.13
$
1.71
$
2.12
$
1.70
116.4
121.0
117.0
122.0
2
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
(in millions, except per share data)
Year-to-Date Ended
September 25,
September 26,
2009
2008
$
5,456
$
5,120
5,951
5,770
11,407
10,890
4,842
4,588
5,354
5,159
10,196
9,747
126
1,211
1,269
12
22
203
214
1,020
1,077
339
395
$
681
$
682
7
8
$
674
$
674
6
6
$
668
$
668
$
5.70
$
5.48
$
5.68
$
5.42
117.1
121.8
117.6
123.2
3
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
(in millions, except per share data)
L-3
Communications
Holdings, Inc.s
Accumulated
Common Stock
Additional
Other
Shares
Par
Paid-in
Treasury
Retained
Comprehensive
Noncontrolling
Total
Issued
Value
Capital
Stock
Earnings
(Loss) Income
Interests
Equity
118.6
$
1
$
4,135
$
(1,319
)
$
3,373
$
(332
)
$
83
$
5,941
674
7
681
23
23
3
3
116
116
823
(6
)
(6
)
(124
)
(124
)
8
8
1.6
110
110
0.3
14
14
1.1
34
34
53
53
(5.6
)
(396
)
(396
)
0.1
(2
)
(1
)
(3
)
116.1
$
1
$
4,344
$
(1,715
)
$
3,922
$
(190
)
$
92
$
6,454
September 26, 2008:
124.2
$
1
$
3,816
$
(525
)
$
2,582
$
153
$
87
$
6,114
674
8
682
2
2
4
4
(54
)
(54
)
634
(8
)
(8
)
($0.90 per share)
(111
)
(111
)
1.0
108
108
0.7
50
50
0.8
35
35
48
48
(5.6
)
(573
)
(573
)
(5
)
(5
)
121.1
$
1
$
4,052
$
(1,098
)
$
3,145
$
105
$
87
$
6,292
4
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
(in millions)
Year-to-Date Ended
September 25,
September 26,
2009
2008
$
681
$
682
117
114
45
41
36
143
53
48
110
108
39
3
17
15
8
8
28
(12
)
(2
)
(6
)
1,104
1,172
(18
)
(2
)
(98
)
(161
)
(3
)
(32
)
(31
)
10
171
(44
)
(23
)
1
30
(35
)
71
32
(10
)
(3
)
(10
)
(20
)
(143
)
40
17
12
(18
)
(126
)
(141
)
978
1,031
(86
)
(224
)
12
(128
)
(139
)
3
5
(6
)
(211
)
(352
)
(396
)
(573
)
(124
)
(111
)
11
38
51
52
3
10
(9
)
(11
)
(464
)
(595
)
21
(7
)
324
77
867
780
$
1,191
$
857
5
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1.
Description
of Business
2.
Basis of
Presentation
6
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
7
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
3.
New
Accounting Standards Implemented
Accounting for convertible debt instruments that may be settled
in cash upon conversion (Convertible Debt). The new standard is
contained in FASB Accounting Standards Codification (ASC) Topic
470,
Debt
;
Determining whether instruments granted in share-based payment
transactions are participating securities (Participating
Securities). The new standard is contained in FASB ASC Topic
260,
Earnings Per Share;
Noncontrolling interests in consolidated financial statements
(Noncontrolling Interests). The new standard is contained in
FASB ASC Topic 810,
Consolidation
;
Disclosures about derivative instruments and hedging activities
(Derivative Disclosures). The new standard is contained in FASB
ASC Topic 815,
Derivatives and Hedging
;
Business combinations (Business Combinations). The new standard
is contained in FASB ASC Topic 805,
Business Combinations;
and
Fair value measurements and disclosures (Fair Value
Measurements). The new standard is contained in FASB ASC Topic
820,
Fair Value Measurements and Disclosures.
8
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
Third Quarter Ended
Year-to-Date Ended
September 25, 2009
September 25, 2009
(in millions, except per share data)
$
5
$
15
(2
)
(6
)
(3
)
(9
)
$
(0.03
)
$
(0.08
)
$
(0.02
)
$
(0.08
)
9
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
Subsequent Events (Subsequent Events). The new standard is
contained in FASB ASC Topic 855,
Subsequent
Events
; and
Interim Disclosures about Fair Value of Financial Instruments
(Financial Instruments). The new standard is contained in FASB
ASC Topic 825,
Financial Instruments
.
10
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
Adjustments for:
As Previously
Noncontrolling
Convertible
As Currently
Reported
Interests
Debt
Reported
(in millions)
ASSETS
$
4,961
$
$
$
4,961
821
821
8,029
8,029
417
417
45
(1
)
44
212
212
$
14,485
$
$
(1
)
$
14,484
$
2,707
$
$
$
2,707
802
802
110
17
127
414
414
4,538
(45
)
4,493
8,571
(28
)
8,543
83
(83
)
4,072
64
4,136
(1,319
)
(1,319
)
3,410
(37
)
3,373
(332
)
(332
)
5,831
27
5,858
83
83
5,831
83
27
5,941
$
14,485
$
$
(1
)
$
14,484
$
3,228
$
$
64
$
3,292
2,608
(26
)
2,582
153
153
87
87
$
5,989
$
87
$
38
$
6,114
11
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
Adjustments for:
As Previously
Noncontrolling
Participating
Convertible
As Currently
Reported
Interests
Securities
Debt
Reported
(in millions, except per share data)
$
3,662
$
$
$
$
3,662
3,262
3,262
400
400
7
7
68
4
72
2
(2
)
337
2
(4
)
335
125
(2
)
123
$
212
$
2
$
$
(2
)
$
212
2
2
$
212
$
$
$
(2
)
$
210
3
3
$
212
$
$
(3
)
$
(2
)
$
207
$
1.75
$
$
(0.02
)
$
(0.02
)
$
1.71
$
1.73
$
$
(0.01
)
$
(0.02
)
$
1.70
121.0
121.0
122.6
(0.6
)
122.0
12
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
Adjustments for:
As Previously
Noncontrolling
Participating
Convertible
As Currently
Reported
Interests
Securities
Debt
Reported
(in millions, except per share data)
$
10,890
$
$
$
$
10,890
9,747
9,747
126
126
1,269
1,269
22
22
200
14
214
8
(8
)
1,083
8
(14
)
1,077
401
(6
)
395
$
682
$
8
$
$
(8
)
$
682
8
8
$
682
$
$
$
(8
)
$
674
6
6
$
682
$
$
(6
)
$
(8
)
$
668
$
5.60
$
$
(0.05
)
$
(0.07
)
$
5.48
$
5.51
$
$
(0.02
)
$
(0.07
)
$
5.42
121.8
121.8
123.7
(0.5
)
123.2
4.
Acquisitions
and Dispositions
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
2009
2008
(in millions, except per share data)
$
3,842
$
3,694
$
11,413
$
11,034
$
250
$
212
$
674
$
676
$
2.12
$
1.71
$
5.68
$
5.43
14
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
5.
Contracts
in Process
September 25,
December 31,
2009
2008
(in millions)
$
2,318
$
2,079
(629
)
(462
)
1,689
1,617
846
754
(137
)
(104
)
709
650
$
2,398
$
2,267
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
2009
2008
(in millions)
$
79
$
79
$
74
$
68
305
335
951
935
7
(294
)
(339
)
(935
)
(935
)
$
90
$
75
$
90
$
75
15
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
(1)
Incurred costs include IRAD and
B&P costs of $76 million for the quarter ended
September 25, 2009, $74 million for the quarter ended
September 26, 2008, $232 million for the
year-to-date
period ended September 25, 2009 and $211 million for
the
year-to-date
period ended September 26, 2008.
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
2009
2008
(in millions)
$
57
$
70
$
175
$
209
17
19
54
67
$
74
$
89
$
229
$
276
6.
Inventories
September 25,
December 31,
2009
2008
(in millions)
$
99
$
95
127
121
32
43
$
258
$
259
7.
Goodwill
and Identifiable Intangible Assets
Government
Specialized
Consolidated
C
3
ISR
Services
AM&M
Products
Total
(in millions)
$
862
$
2,313
$
1,121
$
3,733
$
8,029
5
57
62
14
2
30
51
97
$
876
$
2,320
$
1,151
$
3,841
$
8,188
(1)
As a result of certain
re-alignments in the Companys management and organization
structure as discussed in Note 2, $17 million of
goodwill was reclassified from the
C
3
ISR
reportable segment to the Government Services reportable
segment, and $17 million of goodwill was reclassified from
the C
3
ISR
reportable segment to the AM&M reportable segment.
16
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
(2)
The increase in goodwill from
foreign currency translation adjustments is due to the weakening
of the U.S. dollar during the
year-to-date
period ended September 25, 2009 against the functional
currencies of L-3s foreign subsidiaries, primarily in
Canada, Germany and the United Kingdom.
September 25, 2009
Weighted
December 31, 2008
Average
Gross
Net
Gross
Net
Amortization
Carrying
Accumulated
Carrying
Carrying
Accumulated
Carrying
Period
Amount
Amortization
Amount
Amount
Amortization
Amount
(in years)
(in millions)
23
$
515
$
154
$
361
$
505
$
124
$
381
8
78
55
23
76
47
29
7
14
8
6
14
7
7
22
$
607
$
217
$
390
$
595
$
178
$
417
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
2009
2008
(in millions)
$
13
$
12
$
39
$
34
Years Ending December 31,
2009
2010
2011
2012
2013
(in millions)
$
52
$
52
$
47
$
39
$
30
17
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
8.
Other
Current Liabilities and Other Liabilities
September 25,
December 31,
2009
2008
(in millions)
$
3
$
5
91
97
65
66
58
58
27
25
5
87
100
$
336
$
351
September 25,
December 31,
2009
2008
(in millions)
$
176
$
177
87
79
51
45
6
8
6
9
10
10
7
5
81
81
$
424
$
414
Year-to-Date Ended
September 25,
September 26,
2009
2008
(in millions)
$
102
$
98
5
36
27
2
(1
)
(42
)
(30
)
$
98
$
99
(1)
Warranty obligations incurred in
connection with long-term production contracts are accounted for
within the contract estimates at completion (EACs) and are
excluded from the above amounts. Balances include both long-term
and short-term amounts.
18
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
9.
Debt
September 25,
December 31,
2009
2008
(in millions)
$
$
650
650
750
750
400
400
400
400
650
650
1,000
1,000
3,850
3,850
700
700
4,550
4,550
(40
)
(57
)
4,510
4,493
(650
)
$
3,860
$
4,493
(1)
The Companys five-year
revolving credit facility, which was replaced on
October 23, 2009 by a new $1 billion three-year
revolving credit facility maturing on October 23, 2012,
allowed for total aggregate borrowings of up to $1 billion.
At September 25, 2009, available borrowings under the
revolving credit facility were $965 million after
reductions for outstanding letters of credit of $35 million.
(2)
The interest rate at
September 25, 2009 and December 31, 2008 was 1.12% and
2.70%, respectively, and was based on the LIBOR rate (as defined
in the credit agreement) plus a spread. See Note 10 to the
audited consolidated financial statements included in the
Companys Annual Report on
Form 10-K
for the year ended December 31, 2008 for additional
information regarding the interest on borrowings under the term
loan facility. Borrowings under the term loan facility were
repaid on October 7, 2009 and are classified as a current
liability as of September 25, 2009.
(3)
Under select conditions, including
if L-3 Holdings common stock price is more than 120% (currently
$120.17) of the then current conversion price (currently
$100.14) for a specified period, the conversion feature of the
CODES will require L-3 Holdings, upon conversion, to pay the
$700 million principal amount in cash, and if the
settlement amount exceeds the principal amount, the excess will
be settled in cash or stock or a combination thereof, at the
Companys option. At the current conversion price of
$100.14, the aggregate consideration to be delivered upon
conversion would be determined based on 7.0 million shares
of
L-3
Holdings common stock. See Note 10 to the audited
consolidated financial statements for the year ended
December 31, 2008, included in the Companys Annual
Report on
Form 10-K
for additional information regarding the CODES, including
conditions for conversion. L-3s stock price on
October 30, 2009 was $72.29 per share. The effective
interest rate on the CODES is 6.33%. Interest expense relates to
both the contractual coupon interest and amortization of the
discount on the liability components. Interest expense
recognized was $11 million and $10 million for the
third quarter periods ended September 25, 2009 and
September 26, 2008, respectively, and $31 million and
$30 million for the
year-to-date
periods ended September 25, 2009 and September 26,
2008, respectively. The following table provides additional
information about the Companys CODES:
September 25,
December 31,
2009
2008
(in millions)
$
64
$
64
$
29
$
45
$
671
$
655
19
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
20
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
10.
Comprehensive
Income
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
2009
2008
(in millions)
$
253
$
212
$
681
$
682
66
(57
)
116
(54
)
4
3
3
4
8
(1
)
23
2
331
157
823
634
3
2
7
8
$
328
$
155
$
816
$
626
(1)
Amounts are net of income taxes of
$2 million and $1 million for the quarterly periods
ended September 25, 2009 and September 26, 2008,
respectively, and $1 million and $2 million for the
year-to-date
periods ended September 25, 2009 and September 26,
2008, respectively.
(2)
Amounts are net of income taxes of
$5 million for the quarterly period ended
September 25, 2009, and $16 million and
$1 million for the
year-to-date
periods ended September 25, 2009 and September 26,
2008, respectively. See Note 17.
11.
Income
Taxes
21
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
12.
L-3
Holdings Earnings Per Common Share
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
2009
2008
(in millions, except per share data)
$
248
$
207
$
668
$
668
116.4
121.0
117.1
121.8
$
2.13
$
1.71
$
5.70
$
5.48
$
248
$
207
$
668
$
668
116.4
121.0
117.1
121.8
3.5
4.0
3.5
4.3
0.6
0.3
0.4
0.3
0.4
(3.5
)
(3.4
)
(3.6
)
(3.5
)
(1)
(1)
(1)
0.2
117.0
122.0
117.6
123.2
$
2.12
$
1.70
$
5.68
$
5.42
(1)
L-3 Holdings CODES had no
impact on diluted EPS for the quarter and
year-to-date
period ended September 25, 2009 and the quarter ended
September 26, 2008, because the average market price of L-3
Holdings common stock during these periods was less than
the price at which the CODES would have been convertible into
L-3 Holdings common stock. As of September 25, 2009,
the conversion price was $100.14.
22
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
13.
Equity
14.
Fair
Value Measurements
September 25, 2009
December 31, 2008
Level
1
(a)
Level
2
(b)
Level
3
(c)
Level
1
(a)
Level
2
(b)
Level
3
(c)
(in millions)
$
958
$
$
$
794
$
$
18
22
$
$
958
$
18
$
$
794
$
22
$
$
$
9
$
$
$
21
$
(a)
Level 1 is based on quoted
market prices available in active markets for identical assets
or liabilities as of the reporting date.
(b)
Level 2 is based on pricing
inputs other than quoted prices in active markets, which are
either directly or indirectly observable. The fair value is
determined using a valuation model based on observable market
inputs, including quoted foreign currency forward exchange rates
and consideration of non-performance risk.
(c)
Level 3 is based on pricing
inputs that are not observable and not corroborated by market
data. The Company has no Level 3 assets or liabilities.
15.
Financial
Instruments
23
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
September 25, 2009
December 31, 2008
Carrying
Estimated
Carrying
Estimated
Amount
Fair Value
Amount
Fair Value
(in millions)
$
650
$
643
$
650
$
608
3,189
3,172
3,188
2,916
671
717
655
697
9
9
1
1
(1)
Notional amounts of foreign
currency forward contracts were $359 million at
September 25, 2009 and $414 million at
December 31, 2008.
Currency
Notional Amount
(in millions)
$
130
105
99
14
11
$
359
24
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
Fair Values of Derivative
Instruments
(1)
Other
Other
Current
Other
Current
Other
Assets
Assets
Liabilities
Liabilities
(in millions)
$
6
$
9
$
3
$
2
2
1
3
1
$
8
$
10
$
6
$
3
(1)
See Note 14 for a description
of the fair value hierarchy related to the Companys
foreign currency forward contracts.
Gain or (Loss) Recognized
Amount of
in Income on Derivative
Gain or (Loss)
Gain or (Loss) Reclassified from Accumulated
(Ineffective Portion and
Recognized in
OCI into Income
Amount Excluded from
OCI on Derivative
(Effective Portion)
Effectiveness Testing)
(Effective Portion)
Location
Amount
Location
Amount
($ in millions)
$
5
Cost of Sales
$
Cost of Sales
$
$
Cost of Sales
$
(3
)
Cost of Sales
$
Gain or (Loss) Recognized in Income on Derivative
Location
Amount
(in millions)
Cost of Sales
$
2
Cost of Sales
$
2
16.
Commitments
and Contingencies
25
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
26
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
27
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
28
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
29
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
17.
Pension
and Other Postretirement Benefits
Pension Plans
Postretirement Benefit Plans
Third Quarter Ended
Year-to-Date Ended
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
September 25,
September 26,
September 25,
September 26,
2009
2008
2009
2008
2009
2008
2009
2008
(in millions)
$
22
$
21
$
67
$
67
$
1
$
1
$
3
$
4
29
26
84
79
2
3
8
8
(22
)
(29
)
(67
)
(89
)
(1
)
(2
)
(1
)
1
3
2
(1
)
(2
)
(2
)
13
1
39
5
(2
)
(1
)
(2
)
1
1
1
$
43
$
20
$
127
$
65
$
1
$
2
$
6
$
7
18.
Employee
Stock-Based Compensation
30
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
19.
Supplemental
Cash Flow Information
Year-to-Date Ended
September 25,
September 26,
2009
2008
(in millions)
$
181
$
198
271
265
3
6
20.
Segment
Information
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
(1)
2009
2008
(1)
(In millions)
$
772
$
622
$
2,258
$
1,794
1,012
1,045
3,089
3,259
775
636
2,176
1,956
1,369
1,401
4,090
3,987
(86
)
(42
)
(206
)
(106
)
$
3,842
$
3,662
$
11,407
$
10,890
$
78
$
56
$
251
$
185
103
100
295
322
67
70
184
178
170
174
481
458
(2)
$
418
$
400
$
1,211
$
1,143
126
(3)
$
418
$
400
$
1,211
$
1,269
$
11
$
10
$
32
$
30
10
8
29
26
5
7
15
19
29
27
86
80
$
55
$
52
$
162
$
155
31
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
September 25,
December 31,
2009
2008
(1)
(in millions)
$
1,877
$
1,755
3,458
3,494
1,968
1,836
6,590
6,319
1,175
1,080
$
15,068
$
14,484
(1)
As a result of certain
re-alignments in the Companys management and organization
structure as discussed in Note 2, sales of $4 million and
$11 million and operating income of $1 million and
$2 million were reclassified from the
C
3
ISR
reportable segment to the Government Services reportable segment
for the quarter and
year-to-date
period ended September 26, 2008, and sales of
$4 million and $16 million and operating income of
less than $1 million and $2 million were reclassified
from the
C
3
ISR
reportable segment to the AM&M reportable segment for the
quarter and
year-to-date
period ended September 26, 2008. At December 31, 2008,
$30 million of total assets was reclassified from the
C
3
ISR
reportable segment to the Government Services reportable segment
and $29 million of total assets was reclassified from the
C
3
ISR
reportable segment to the AM&M reportable segment.
(2)
Operating income for the
Specialized Products reportable segment includes: (i) a
gain of $12 million from the sale of the PMD product line
(see Note 4) and (ii) a non-cash impairment
charge of $28 million related to a write-down of
capitalized software development costs, which were both recorded
in the second quarter of 2008.
(3)
Represents a gain recorded in the
second quarter of 2008 for the reversal of a current liability
for pending and threatened litigation as a result of a
June 27, 2008 decision by the U.S. Court of Appeals
vacating an adverse 2006 jury verdict.
21.
Accounting
Standards Issued and Not Yet Implemented
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
22.
Unaudited
Financial Information of L-3 Communications and Its
Subsidiaries
L-3
Non-
Holdings
L-3
Guarantor
Guarantor
Consolidated
(Parent)
Communications
Subsidiaries
Subsidiaries
Eliminations
L-3
(in millions)
$
$
887
$
12
$
337
$
(45
)
$
1,191
303
765
202
1,270
641
1,494
263
2,398
250
176
128
554
2,081
2,447
930
(45
)
5,413
1,144
5,876
1,168
8,188
5
461
823
183
(5
)
1,467
7,057
8,869
1,721
(17,647
)
$
7,062
$
12,555
$
10,867
$
2,281
$
(17,697
)
$
15,068
$
$
650
$
$
$
$
650
732
1,362
608
(45
)
2,657
3
(3
)
951
230
266
1,447
700
3,860
(700
)
3,860
700
6,193
1,592
877
(748
)
8,614
6,362
6,362
9,275
1,404
(17,041
)
6,362
92
92
6,362
6,362
9,275
1,404
(16,949
)
6,454
$
7,062
$
12,555
$
10,867
$
2,281
$
(17,697
)
$
15,068
$
$
720
$
2
$
228
$
(83
)
$
867
324
701
201
1,226
587
1,461
219
2,267
291
170
140
601
1,922
2,334
788
(83
)
4,961
1,171
5,746
1,112
8,029
8
475
837
182
(8
)
1,494
6,550
8,489
1,283
80
(16,402
)
$
6,558
$
12,057
$
10,200
$
2,162
$
(16,493
)
$
14,484
$
$
824
$
1,395
$
571
$
(83
)
$
2,707
882
219
242
1,343
700
4,493
(700
)
4,493
700
6,199
1,614
813
(783
)
8,543
5,858
5,858
8,586
1,349
(15,793
)
5,858
83
83
5,858
5,858
8,586
1,349
(15,710
)
5,941
$
6,558
$
12,057
$
10,200
$
2,162
$
(16,493
)
$
14,484
33
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
L-3
Non-
Holdings
L-3
Guarantor
Guarantor
Consolidated
(Parent)
Communications
Subsidiaries
Subsidiaries
Eliminations
L-3
(in millions)
$
$
789
$
2,627
$
459
$
(33
)
$
3,842
18
678
2,377
402
(51
)
3,424
(18
)
111
250
57
18
418
31
(28
)
3
11
68
27
1
(39
)
68
(29
)
74
223
56
29
353
(9
)
27
53
20
9
100
270
203
(473
)
250
250
170
36
(453
)
253
3
3
$
250
$
250
$
170
$
36
$
(456
)
$
250
$
$
803
$
2,408
$
489
$
(38
)
$
3,662
18
689
2,161
450
(56
)
3,262
(18
)
114
247
39
18
400
32
2
2
(29
)
7
11
71
28
2
(40
)
72
(29
)
75
221
39
29
335
(10
)
25
83
15
10
123
229
160
(389
)
210
210
138
24
(370
)
212
2
2
$
210
$
210
$
138
$
24
$
(372
)
$
210
34
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
L-3
Non-
Holdings
L-3
Guarantor
Guarantor
Consolidated
(Parent)
Communications
Subsidiaries
Subsidiaries
Eliminations
L-3
(in millions)
$
$
2,476
$
7,659
$
1,369
$
(97
)
$
11,407
53
2,163
6,913
1,217
(150
)
10,196
(53
)
313
746
152
53
1,211
94
1
2
(85
)
12
33
202
82
4
(118
)
203
(86
)
205
665
150
86
1,020
(29
)
71
214
54
29
339
731
540
(1,271
)
674
674
451
96
(1,214
)
681
7
7
$
674
$
674
$
451
$
96
$
(1,221
)
$
674
$
$
2,204
$
7,277
$
1,494
$
(85
)
$
10,890
48
1,894
6,588
1,350
(133
)
9,747
126
126
(48
)
436
689
144
48
1,269
99
4
5
(86
)
22
32
213
82
5
(118
)
214
(80
)
322
611
144
80
1,077
(29
)
112
229
54
29
395
725
464
(1,189
)
674
674
382
90
(1,138
)
682
8
8
$
674
$
674
$
382
$
90
$
(1,146
)
$
674
Table of Contents
AND L-3 COMMUNICATIONS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (Continued)
L-3
Non-
Holdings
L-3
Guarantor
Guarantor
Consolidated
(Parent)
Communications
Subsidiaries
Subsidiaries
Eliminations
L-3
(in millions)
For the
year-to-date
period ended
September 25, 2009:
$
520
$
30
$
753
$
157
$
(482
)
$
978
(86
)
(86
)
(55
)
(31
)
(85
)
(9
)
55
(125
)
(55
)
(117
)
(85
)
(9
)
55
(211
)
(396
)
(396
)
(69
)
254
(658
)
(60
)
465
(68
)
(465
)
254
(658
)
(60
)
465
(464
)
21
21
167
10
109
38
324
720
2
228
(83
)
867
$
$
887
$
12
$
337
$
(45
)
$
1,191
For the
year-to-date
period ended
September 26, 2008:
$
684
$
13
$
848
$
140
$
(654
)
$
1,031
(224
)
(224
)
(87
)
(38
)
(76
)
(14
)
87
(128
)
(87
)
(262
)
(76
)
(14
)
87
(352
)
(573
)
(573
)
(24
)
256
(770
)
(121
)
637
(22
)
(597
)
256
(770
)
(121
)
637
(595
)
(7
)
(7
)
7
2
(2
)
70
77
632
7
237
(96
)
780
$
$
639
$
9
$
235
$
(26
)
$
857
Table of Contents
Topic
Location
Pages 37 38
Pages 38 39
Pages 39 40
Page 40
Pages 40 43
Pages 43 49
Page 50
Pages 50 51
Pages 51 54
Page 54
% of
2008 Sales
2008 Sales
(in millions)
$
11,059
74
%
1,067
7
12,126
81
%
1,099
7
987
7
689
5
$
14,901
100
%
37
Table of Contents
38
Table of Contents
A gain of $133 million ($81 million after income
taxes, or $0.65 per diluted share) relating to the reversal of a
$126 million liability as a result of a June 27, 2008
decision by the U.S. Court of Appeals vacating an adverse
2006 jury verdict and the reversal of $7 million of related
accrued interest (the Litigation Gain),
A gain of $12 million ($7 million after income taxes,
or $0.06 per diluted share) relating to the sale of a product
line (the Product Line Divestiture Gain), and
39
Table of Contents
A non-cash impairment charge of $28 million
($17 million after income taxes, or $0.14 per diluted
share) relating to a write-down of capitalized software
development costs associated with a general aviation product
(the Impairment Charge).
Number of
Aggregate
Reportable Segment
Reporting Units
Goodwill
(in millions)
3
$
896
1
2,296
1
1,104
13
3,733
18
$
8,029
40
Table of Contents
Reportable Segment
2009 2018
After 2018
7.9
%
8.6
%
8.3
%
9.2
%
7.9
%
8.6
%
8.2
%
9.0
%
(1)
All reporting units within the
C
3
ISR
reportable segment used the same risk adjusted discount rate for
both periods.
(2)
The Government Services and
AM&M reportable segments are each comprised of one
reporting unit.
(3)
The risk adjusted discount rates
used for reporting units within the Specialized Products
reportable segment range from 7.9% to 9.3% for 2009 to 2018, and
8.6% to 10.3% for the years after 2018.
41
Table of Contents
Reportable Segment
Cash
Flow
(1)
Growth Rate
(in millions)
2008
2008
2007
2006
3 Yr. Average
$
169
17
%
(4
)%
1
%
5
%
$
440
22
%
(16
)%
180
%
62
%
$
226
9
%
(6
)%
6
%
3
%
$
488
(12
)%
30
%
32
%
17
%
(1)
Reportable segment cash flow
excludes interest payments on debt and other corporate cash
flows.
(2)
The increase in cash flow in 2008
for C
3
ISR
was primarily due to sales and operating income growth and a
smaller increase in working capital for ISR Systems as compared
to 2007. In 2007, cash generated from higher sales and operating
income, was offset by cash used for working capital attributable
to increased billed receivables associated with 2007 sales
growth, primarily for ISR Systems. In 2006, cash generated from
higher sales volume for networked communications and new
business awards for ISR Systems was substantially offset by
higher development costs for new secure communications products.
(3)
The increase in cash flows in 2008
for Government Services was primarily due to higher sales and
operating income for business areas other than linguist services
and collection of receivables on the Linguist Contract for which
the period of performance ended June 9, 2008. The decrease
in cash flow in 2007 was due to collections of receivables in
2006 and the timing of cash payments in 2006 that did not recur
in 2007. These decreases in 2007 were partially offset by higher
operating income due to higher sales volume and improved
contract performance. The increase in cash flow in 2006 was
primarily due to the Titan acquisition and improved collections
and timing of payments.
(4)
The increase in cash flows in 2008
for AM&M was primarily due to increases in accounts payable
balances and receivable collections for aircraft and base
support services due to the timing of payments and collections.
The decrease in cash flows in 2007 was primarily due to
increased purchases of spare parts inventory for aircraft and
base support services to support future requirements, partially
offset by higher sales volume and operating income primarily for
aircraft and base support services and aircraft modernization
for international customers. The increase in cash flow in 2006
was due to sales and operating income growth.
(5)
The decrease in cash flows in 2008
for Specialized Products was primarily due to more cash used for
working capital across several business areas. These decreases
were partially offset by higher 2008 operating income. The
increase in cash flows in 2007 and 2006 was primarily due to
higher operating income for several business areas.
42
Table of Contents
Risk Adjusted
Reporting Unit
Discount Rates
Annual Cash Flow Growth Rate
3 Year
2008
Goodwill
Excess
2009-2018
After 2018
2008
2007
2006
Average
Cash Flows
Balance
Fair
Value
(1)
(in millions)
8.9
%
9.9
%
2
%
(4
)%
110
%
36
%
$
22
$
193
1
%
7.9
%
8.6
%
(25
)%
130
%
65
%
57
%
$
83
$
708
18
%
7.9
%
8.6
%
9
%
343
%
(123
)%
76
%
$
4
$
104
18
%
8.2
%
9.0
%
8
%
24
%
23
%
18
%
$
72
$
586
19
%
(1)
The excess fair value represents
the percentage by which the fair value of a reporting unit must
decline before a potential impairment is identified and would
require the second step of the goodwill impairment assessment to
be performed.
(2)
A decrease in fair value of
approximately $3 million for this reporting unit would be
required before its carrying value exceeded its fair value. Our
DCF valuation for this reporting unit assumed lower projected
cash flows for 2009 as compared to 2008. In addition, our DCF
valuation for this reporting unit assumed that its 2008 cash
flow level would not be achieved again until 2013 and that this
reporting units projected cash flows would grow annually
at approximately 3% after 2013. While not considered in our DCF
valuation, we are taking actions to increase this reporting
units profitability and cash flows, including reducing
administrative and other overhead costs, creating synergies with
other L-3 businesses, and securing new business from DoD and
non-DOD customers.
(3)
A decrease in fair value of
approximately $179 million for this reporting unit would be
required before its carrying value exceeded its fair value. Our
DCF valuation for the reporting unit assumed lower projected
cash flows for 2009 as compared to 2008. In addition, our DCF
valuation for this reporting unit assumed that its 2008 cash
flow level will not be achieved again until after 2013 and that
this reporting units projected cash flows would grow
annually at 2.5% from 2014 to 2018 and 2% after 2018.
(4)
A decrease in fair value of
approximately $28 million for this reporting unit would be
required before its carrying value exceeded its fair value. Our
DCF valuation for this reporting unit assumed higher projected
cash flows after 2008 due to higher sales and improved contract
performance, partially offset by a higher cash tax rate
assumption. In addition, our DCF valuation applied: (1) a 25%
average annual cash flow growth rate through 2013 due to working
capital improvements and average annual operating income growth
rate of 6%, (2) a 2.5% annual cash flow growth rate from
2014 to 2018 and (3) a 2% cash flow growth rate after 2018.
(5)
A decrease in fair value of
approximately $193 million for the reporting unit would be
required before its carrying value exceeded its fair value. Our
DCF valuation for this reporting unit assumed lower projected
cash flows for 2009 as compared to 2008. In addition, our DCF
valuation for this reporting unit assumed that its 2008 cash
flow level will not be achieved again until after 2013 and that
this reporting units projected cash flows would grow
annually at 2.6% from 2014 to 2018 and 2.2% after 2018.
43
Table of Contents
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
Increase/
September 25,
September 26,
Increase/
2009
2008
(decrease)
2009
2008
(1)
(decrease)
(in millions, except share data)
$
3,842
$
3,662
$
180
$
11,407
$
10,890
$
517
$
418
$
400
$
18
$
1,211
$
1,269
$
(58
)
(126
)
126
$
418
$
400
$
18
$
1,211
$
1,143
$
68
10.9
%
10.9
%
bpts
10.6
%
11.7
%
(110
)bpts
%
%
bpts
%
(1.2
)%
120
bpts
10.9
%
10.9
%
bpts
10.6
%
10.5
%
10
bpts
$
65
$
65
$
$
191
$
192
$
(1
)
28.3
%
36.7
%
(840
)bpts
33.2
%
36.7
%
(350
)bpts
$
250
$
210
$
40
$
674
$
674
$
$
2.12
$
1.70
$
0.42
$
5.68
$
5.42
$
0.26
117.0
122.0
(5.0
)
117.6
123.2
(5.6
)
44
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45
Table of Contents
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
(1)
2009
2008
(1)
(dollars in millions)
$
752.9
621.0
$
2,224.4
$
1,790.0
1,010.6
1,042.4
3,084.5
3,249.4
742.0
633.7
2,100.8
1,953.0
1,336.0
1,365.1
3,996.9
3,897.9
$
3,841.5
$
3,662.2
$
11,406.6
$
10,890.3
$
78.1
$
55.8
$
251.4
$
184.7
102.8
100.1
294.6
322.2
67.1
70.3
183.9
178.5
169.8
173.9
480.7
457.7
(3)
417.8
400.1
1,210.6
1,143.1
(3)
126.0
$
417.8
$
400.1
$
1,210.6
$
1,269.1
10.4
%
9.0
%
11.3
%
10.3
%
10.2
%
9.6
%
9.6
%
9.9
%
9.0
%
11.1
%
8.8
%
9.1
%
12.7
%
12.7
%
12.0
%
11.7
%
(3)
10.9
%
10.9
%
10.6
%
10.5
%
(3)
1.2
%
10.9
%
10.9
%
10.6
%
11.7
%
(1)
As a result of certain
re-alignments in our management and organization structure as
discussed in Note 2 to our unaudited condensed consolidated
financial statements contained in this quarterly report, sales
of $3.0 million and $9.6 million and operating income
of $1.2 million and $2.3 million were reclassified
from the
C
3
ISR
reportable segment to the Government Services reportable segment
for the quarter and
Year-to-Date
Period ended September 26, 2008, and sales of
$2.2 million and $13.9 million and operating income of
less than
46
Table of Contents
$1 million and
$1.8 million were reclassified from the
C
3
ISR
reportable segment to the AM&M reportable segment for the
quarter and
Year-to-Date
Period ended September 26, 2008.
(2)
Net sales are after intercompany
eliminations.
(3)
Total segment operating income
includes the $12 million Product Line Divestiture gain and
the $28 million Impairment Charge, which were recorded in
the Specialized Products reportable segment. The Product Line
Divestiture gain and Impairment Charge, on a net basis, reduced
total segment operating margin by 10 basis points and
operating margin for the Specialized Products reportable segment
by 40 basis points for the
2008 Year-to-Date
Period.
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
2009
2008
Increase
2009
2008
Increase
(dollars in millions)
$
752.9
$
621.0
$
131.9
$
2,224.4
$
1,790.0
$
434.4
78.1
55.8
22.3
251.4
184.7
66.7
10.4
%
9.0
%
140
bpts
11.3
%
10.3
%
100
bpts
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
Increase/
September 25,
September 26,
2009
2008
(decrease)
2009
2008
Decrease
(dollars in millions)
$
1,010.6
$
1,042.4
$
(31.8
)
$
3,084.5
$
3,249.4
$
(164.9
)
102.8
100.1
2.7
294.6
322.2
(27.6
)
10.2
%
9.6
%
60
bpts
9.6
%
9.9
%
(30
)bpts
47
Table of Contents
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
Increase/
September 25,
September 26,
Increase/
2009
2008
(decrease)
2009
2008
(decrease)
(dollars in millions)
$
742.0
$
633.7
$
108.3
$
2,100.8
$
1,953.0
$
147.8
67.1
70.3
(3.2
)
183.9
178.5
5.4
9.0
%
11.1
%
(210
)bpts
8.8
%
9.1
%
(30
)bpts
48
Table of Contents
Third Quarter Ended
Year-to-Date Ended
September 25,
September 26,
September 25,
September 26,
Increase/
2009
2008
Decrease
2009
2008
(decrease)
(dollars in millions)
$
1,336.0
$
1,365.1
$
(29.1
)
$
3,996.9
$
3,897.9
$
99.0
169.8
173.9
(4.1
)
480.7
457.7
23.0
12.7
%
12.7
%
bpts
12.0
%
11.7
%
30
bpts
49
Table of Contents
Increases of $55 million in unbilled contract receivables
primarily due to sales exceeding billings for aircraft
modernization, propulsion systems, simulation & training,
and networked communications; and
Increases of $43 million in inventoried contract costs
across several business areas, primarily EO/IR products,
propulsion systems, displays and secure communications products
to support customer demand.
50
Table of Contents
Government
Specialized
Consolidated
C
3
ISR
Services
AM&M
Products
Total
(in millions)
$
862
$
2,313
$
1,121
$
3,733
$
8,029
5
57
62
14
2
30
51
97
$
876
$
2,320
$
1,151
$
3,841
$
8,188
(1)
As a result of certain
re-alignments in our management and organization structure as
discussed in Note 2 to our unaudited condensed consolidated
financial statements contained in this quarterly report,
$17 million of goodwill was reclassified from the
C
3
ISR
reportable segment to the Government Services reportable
segment, and $17 million of goodwill was reclassified from
the C
3
ISR
reportable segment to the AM&M reportable segment.
(2)
The increase in goodwill from
foreign currency translation adjustments is due to the weakening
of the U.S. dollar during the
2009 Year-to-Date
Period against the functional currencies of L-3s foreign
subsidiaries, primarily in Canada, Germany and the United
Kingdom.
Year-to-Date Ended
September 25,
September 26,
2009
2008
(in millions)
$
978
$
1,031
(211
)
(352
)
(464
)
(595
)
51
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Senior Debt
Subordinated Debt
BBB-
BB+
BBB-
BB+
Baa2
Ba2
52
Table of Contents
Total Number of
Average Price Paid
Shares Purchased
Per Share
Treasury Stock
(at cost in millions)
3,385,982
$
68.39
$
232
971,231
$
71.84
$
69
1,280,986
$
74.20
$
95
5,638,199
$
70.30
$
396
53
Table of Contents
Cash Dividends
Total Dividend
Date Declared
Record Date
Per Share
Date Paid
Paid
(In millions)
February 19, 2009
$
0.35
March 16, 2009
$
42
May 18, 2009
$
0.35
June 15, 2009
$
41
August 17, 2009
$
0.35
September 15, 2009
$
41
our dependence on the defense industry and the business risks
peculiar to that industry, including changing priorities or
reductions in the U.S. Government defense budget;
our reliance on contracts with a limited number of agencies of,
or contractors to, the U.S. Government and the possibility
of termination of government contracts by unilateral government
action or for failure to perform;
the extensive legal and regulatory requirements surrounding our
contracts with the U.S. or foreign governments and the
results of any investigation of our contracts undertaken by the
U.S. or foreign governments;
our ability to retain our existing business and related
contracts (revenue arrangements);
our ability to successfully compete for and win new business and
related contracts (revenue arrangements) and to win
re-competitions of our existing contracts;
our ability to identify and acquire additional businesses in the
future with terms, including the purchase price, that are
attractive to L-3 and to integrate acquired business operations;
54
Table of Contents
our ability to maintain and improve our consolidated operating
margin and total segment operating margin in future periods;
our ability to obtain future government contracts (revenue
arrangements) on a timely basis;
the availability of government funding or cost-cutting
initiatives and changes in customer requirements for our
products and services;
our significant amount of debt and the restrictions contained in
our debt agreements;
our ability to continue to retain and train our existing
employees and to recruit and hire new qualified and skilled
employees, as well as our ability to retain and hire employees
with U.S. Government security clearances that are a
prerequisite to compete for and to perform work on classified
contracts for the U.S. Government;
actual future interest rates, volatility and other assumptions
used in the determination of pension, benefits and equity-based
compensation, as well as the market performance of benefit plan
assets;
our collective bargaining agreements, our ability to
successfully negotiate contracts with labor unions and our
ability to favorably resolve labor disputes should they arise;
the business, economic and political conditions in the markets
in which we operate, including those for the commercial
aviation, shipbuilding and communications markets;
global economic uncertainty;
the DoDs contractor support services in-sourcing
initiative;
events beyond our control such as acts of terrorism;
our ability to perform contracts (revenue arrangements) on
schedule;
our international operations, including sales to foreign
customers;
our extensive use of fixed-price type contracts as compared to
cost-reimbursable type and
time-and-material
type contracts;
the rapid change of technology and high level of competition in
the defense industry and the commercial industries in which our
businesses participate;
our introduction of new products into commercial markets or our
investments in civil and commercial products or companies;
the outcome of current or future litigation matters;
results of audits by U.S. Government agencies, including
the Defense Contract Audit Agency, of our sell prices, costs and
performance on contracts (revenue arrangements), and our
accounting and general business practices;
anticipated cost savings from business acquisitions not fully
realized or realized within the expected time frame;
Titans compliance with its plea agreement and consent to
entry of judgment with the U.S. Government relating to the
Foreign Corrupt Practices Act (FCPA), including Titans
ability to maintain its export licenses as well as the outcome
of other FCPA matters;
ultimate resolution of contingent matters, claims and
investigations relating to acquired businesses, and the impact
on the final purchase price allocations;
significant increase in competitive pressure among companies in
our industry; and
the fair values of our assets, including identifiable intangible
assets and the estimated fair value of the goodwill balances for
our reporting units, which can be impaired or reduced by other
factors, some of which are discussed above.
55
Table of Contents
56
Table of Contents
57
Table of Contents
curtailment of the U.S. Governments use of technology
or other services and products providers, including curtailment
due to government budget reductions and related fiscal matters;
developments in Iraq or Afghanistan, or other geopolitical
developments that affect demand for our products and services;
our ability to hire and retain personnel to meet increasing
demand for our services; and
technological developments that impact purchasing decisions or
our competitive position.
58
Table of Contents
Maximum number
Total number
(or approximate
of shares
dollar value)
purchased
of shares that
Total number
Average
as part of
may yet be
of shares
price paid
publicly announced
purchased under
purchased
per share
plans or programs
the plans or
programs
(1)
(in millions)
206,555
$
70.35
206,555
$
615
747,800
$
74.41
747,800
$
560
326,631
$
76.15
326,631
$
535
1,280,986
$
74.20
1,280,986
(1)
On November 24, 2008, L-3
Holdings Board of Directors approved a new share
repurchase program that authorizes L-3 Holdings to repurchase up
to an additional $1 billion of its outstanding shares of
common stock through December 31, 2010. All purchases of
shares described in the table above were made pursuant to the
new share repurchase program.
59
Table of Contents
By:
Title:
Vice President and Chief Financial Officer
60
Table of Contents
62
Exhibit
No.
Description of Exhibits
3
.1
Certificate of Incorporation of L-3 Communications Holdings,
Inc. (incorporated by reference to Exhibit 3.1 to the
Registrants Quarterly Report on
Form 10-Q
for the period ended June 30, 2002).
3
.2
Amended and Restated By-Laws of L-3 Communications Holdings,
Inc. (incorporated by reference to Exhibit 3(ii) to the
Registrants Current Report on
Form 8-K
filed on April 29, 2009).
3
.3
Certificate of Incorporation of L-3 Communications Corporation
(incorporated by reference to Exhibit 3.1 to L-3
Communications Corporations Registration Statement on
Form S-4
(File
No. 333-31649)).
3
.4
Amended and Restated Bylaws of L-3 Communications Corporation
(incorporated by reference to Exhibit 3.2 to the
Registrants Current Report on
Form 8-K
filed on December 17, 2007).
4
.1
Form of Common Stock Certificate (incorporated by reference to
Exhibit 4.1 to L-3 Communications Holdings
Registration Statement on
Form S-1
(File
No. 333-46975)).
4
.2
Credit Agreement, dated as of October 23, 2009, among L-3
Communications Corporation, L-3 Communications Holdings, Inc.
and certain subsidiaries of the Registrants from time to time
party thereto as guarantors, the lenders from time to time party
thereto, and Bank of America, N.A., as administrative agent
(incorporated by reference to Exhibit 10.1 to the
Registrants Current Report on
Form 8-K
dated October 26, 2009).
4
.3
Indenture dated as of June 28, 2002, among L-3
Communications Corporation, the guarantors named therein and The
Bank of New York Mellon (formerly known as The Bank of New
York), as Trustee (incorporated by reference to Exhibit 4.1
of L-3 Communications Corporations Registration Statement
on
Form S-4
(File
No. 333-99757)).
*4
.4
Supplemental Indenture dated as of October 1, 2009 among
L-3 Communications Corporation, The Bank of New York Mellon
(formerly known as The Bank of New York), as trustee, and the
guarantors named therein to the Indenture dated as of
June 28, 2002 among L-3 Communications Corporation, the
guarantors named therein and The Bank of New York Mellon, as
trustee.
4
.5
Indenture dated as of May 21, 2003 among L-3 Communications
Corporation, the Guarantors named therein and The Bank of New
York Mellon (formerly known as The Bank of New York), as Trustee
(incorporated by reference to Exhibit 4.1 to L-3
Communications Corporations Registration Statement on
Form S-4
(File
No. 333-106106)).
*4
.6
Supplemental Indenture dated as of October 1, 2009 among
L-3 Communications Corporation, The Bank of New York Mellon
(formerly known as The Bank of New York), as trustee, and the
guarantors named therein to the Indenture dated as of
May 21, 2003 among L-3 Communications Corporation, the
guarantors named therein and The Bank of New York Mellon, as
trustee.
4
.7
Indenture dated as of December 22, 2003 among L-3
Communications Corporation, the Guarantors named therein and The
Bank of New York Mellon (formerly known as The Bank of New
York), as Trustee (incorporated by reference to
Exhibit 10.33 to the Registrants Annual Report on
Form 10-K
for the year ended December 31, 2003).
*4
.8
Supplemental Indenture dated as of October 1, 2009 among
L-3 Communications Corporation, The Bank of New York Mellon
(formerly known as The Bank of New York), as trustee, and the
guarantors named therein to the Indenture dated as of
December 22, 2003 among L-3 Communications Corporation, the
guarantors named therein and The Bank of New York Mellon, as
trustee.
4
.9
Indenture dated as of November 12, 2004 among L-3
Communications Corporation, the Guarantors and The Bank of New
York Mellon (formerly known as The Bank of New York), as Trustee
(incorporated by reference to Exhibit 4.1 to L-3
Communications Corporations Registration Statement on
Form S-4
(File
No. 333-122499)).
61
Table of Contents
*4
.10
Supplemental Indenture dated as of October 1, 2009 among
L-3 Communications Corporation, The Bank of New York Mellon
(formerly known as The Bank of New York), as trustee, and the
guarantors named therein to the Indenture dated as of
November 12, 2004 among L-3 Communications Corporation, the
guarantors named therein and The Bank of New York Mellon, as
trustee.
4
.11
Indenture dated as of July 29, 2005 (Notes Indenture) among
L-3 Communications Corporation, the guarantors named therein and
The Bank of New York Mellon (formerly known as The Bank of New
York), as Trustee (incorporated by reference to
Exhibit 10.69 to the Registrants Quarterly Report on
Form 10-Q
for the quarter ended June 30, 2005).
*4
.12
Supplemental Indenture dated as of October 1, 2009 among
L-3 Communications Corporation, The Bank of New York Mellon
(formerly known as The Bank of New York), as trustee, and the
guarantors named therein to the Notes Indenture dated as of
July 29, 2005 among L-3 Communications Corporation, the
guarantors named therein and The Bank of New York Mellon, as
trustee.
4
.13
Indenture dated as of July 29, 2005 (CODES Indenture) among
L-3 Communications Holdings, Inc., the guarantors named therein
and The Bank of New York Mellon (formerly known as The Bank of
New York), as Trustee (incorporated by reference to
Exhibit 10.70 to the Registrants Quarterly Report on
Form 10-Q
for the quarter ended June 30, 2005).
*4
.14
Supplemental Indenture dated as of October 1, 2009 among
L-3 Communications Holdings, Inc., The Bank of New York Mellon
(formerly known as The Bank of New York), as trustee, and the
guarantors named therein to the CODES Indenture dated as of
July 29, 2005 among L-3 Communications Holdings, Inc., the
guarantors named therein and The Bank of New York Mellon, as
trustee.
*4
.15
Indenture dated as of October 2, 2009 among L-3
Communications Corporation, the guarantors named therein and The
Bank of New York Mellon, as Trustee.
**11
L-3 Communications Holdings, Inc. Computation of Basic Earnings
Per Share and Diluted Earnings Per Common Share.
*12
Ratio of Earnings to Fixed Charges.
*31
.1
Certification of Chairman, President and Chief Executive Officer
pursuant to
Rule 13a-14(a)
and
Rule 15d-14(a)
of the Securities Exchange Act, as amended.
*31
.2
Certification of Vice President and Chief Financial Officer
pursuant to
Rule 13a-14(a)
and
Rule 15d-14(a)
of the Securities and Exchange Act, as amended.
*32
Section 1350 Certification.
***101
.INS
XBRL Instance Document
***101
.SCH
XBRL Taxonomy Extension Schema Document
***101
.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
***101
.LAB
XBRL Taxonomy Extension Label Linkbase Document
***101
.PRE
XBRL Taxonomy Extension Presentation Linkbase Document
*
Filed herewith.
**
The information required in this
exhibit is presented in Note 12 to the unaudited condensed
consolidated financial statements as of September 25, 2009
in accordance with the provisions of SFAS No. 128,
Earnings Per Share
.
***
Furnished electronically with this
report.
(a) | Such Guaranteeing Subsidiary, jointly and severally with all other current and future guarantors of the Notes (collectively, the Guarantors and each, a Guarantor), unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, regardless of the validity and enforceability of the Indenture, the Notes or the Obligations of the Company under the Indenture or the Notes, that: |
(i) | the principal of, premium, interest and Additional Amounts, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, interest and Additional Amounts, if any, on the Notes, to the extent lawful, and all other Obligations of the Company to the Holders or the Trustee thereunder or under the Indenture will be promptly paid in full, all in accordance with the terms thereof; and |
1
(ii) | in case of any extension of time for payment or renewal of any Notes or any of such other Obligations, that the same will be promptly paid in full when due in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. |
(b) | Notwithstanding the foregoing, in the event that this Subsidiary Guarantee would constitute or result in a violation of any applicable fraudulent conveyance or similar law of any relevant jurisdiction, the liability of such Guaranteeing Subsidiary under this Supplemental Indenture and its Subsidiary Guarantee shall be reduced to the maximum amount permissible under such fraudulent conveyance or similar law. |
(a) | To evidence its Subsidiary Guarantee set forth in this Supplemental Indenture, such Guaranteeing Subsidiary hereby agrees that a notation of such Subsidiary Guarantee substantially in the form of Exhibit F to the Indenture shall be endorsed by an officer of such Guaranteeing Subsidiary on each Note authenticated and delivered by the Trustee after the date hereof. | ||
(b) | Notwithstanding the foregoing, such Guaranteeing Subsidiary hereby agrees that its Subsidiary Guarantee set forth herein shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee. | ||
(c) | If an Officer whose signature is on this Supplemental Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless. | ||
(d) | The delivery of any Note by the Trustee, after the authentication thereof under the Indenture, shall constitute due delivery of the Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each Guaranteeing Subsidiary. | ||
(e) | Each Guaranteeing Subsidiary hereby agrees that its obligations hereunder shall be unconditional, regardless of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. | ||
(f) | Each Guaranteeing Subsidiary hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that its Subsidiary Guarantee made pursuant |
2
to this Supplemental Indenture will not be discharged except by complete performance of the Obligations contained in the Notes and the Indenture. | |||
(g) | If any Holder or the Trustee is required by any court or otherwise to return to the Company or any Guaranteeing Subsidiary, or any custodian, Trustee, liquidator or other similar official acting in relation to either the Company or such Guaranteeing Subsidiary, any amount paid by either to the Trustee or such Holder, the Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the extent theretofore discharged, shall be reinstated in full force and effect. | ||
(h) | Each Guaranteeing Subsidiary agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Obligations guaranteed hereby until payment in full of all Obligations guaranteed hereby. Each Guaranteeing Subsidiary further agrees that, as between such Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand: |
(i) | the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of the Subsidiary Guarantee made pursuant to this Supplemental Indenture, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby; and | ||
(ii) | in the event of any declaration of acceleration of such obligations as provided in Article 6 of the Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by such Guaranteeing Subsidiary for the purpose of the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(i) | Each Guaranteeing Subsidiary shall have the right to seek contribution from any other non-paying Guaranteeing Subsidiary so long as the exercise of such right does not impair the rights of the Holders or the Trustee under the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(a) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into the Company or any other Guarantor or shall prevent any transfer, sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to the Company or any other Guarantor. | ||
(b) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary |
3
with or into a corporation or corporations other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary), or successive consolidations or mergers in which a Guaranteeing Subsidiary or its successor or successors shall be a party or parties, or shall prevent any sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to a corporation other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary) authorized to acquire and operate the same; provided, however, that each Guaranteeing Subsidiary hereby covenants and agrees that (i) subject to the Indenture, upon any such consolidation, merger, sale or conveyance, the due and punctual performance and observance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiaries, shall be expressly assumed (in the event that such Guaranteeing Subsidiary is not the surviving corporation in the merger), by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the corporation formed by such consolidation, or into which such Guaranteeing Subsidiary shall have been merged, or by the corporation which shall have acquired such property and (ii) immediately after giving effect to such consolidation, merger, sale or conveyance no Default or Event of Default exists. | |||
(c) | In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor corporation, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and the due and punctual performance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiary, such successor corporation shall succeed to and be substituted for such Guaranteeing Subsidiary with the same effect as if it had been named herein as the Guaranteeing Subsidiary. Such successor corporation thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon the Notes issuable under the Indenture which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all respects have the same legal rank and benefit under the Indenture and this Supplemental Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of the Indenture and this Supplemental Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution hereof. |
(a) | Concurrently with any sale of assets (including, if applicable, all of the Capital Stock of a Guaranteeing Subsidiary), all Liens, if any, in favor of the Trustee in the assets sold thereby shall be released; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture. If the assets sold in such sale or other disposition |
4
include all or substantially all of the assets of a Guaranteeing Subsidiary or all of the Capital Stock of a Guaranteeing Subsidiary, then the Guaranteeing Subsidiary (in the event of a sale or other disposition of all of the Capital Stock of such Guaranteeing Subsidiary) or the Person acquiring the property (in the event of a sale or other disposition of all or substantially all of the assets of such Guaranteeing Subsidiary) shall be released from and relieved of its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate to the effect that such sale or other disposition was made by the Company or the Guaranteeing Subsidiary, as the case may be, in accordance with the provisions of the Indenture and this Supplemental Indenture, including without limitation, Section 4.10 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of the Guaranteeing Subsidiary from its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto. If the Guaranteeing Subsidiary is not released from its obligations under its Subsidiary Guarantee, it shall remain liable for the full amount of principal of and interest on the Notes and for the other obligations of such Guaranteeing Subsidiary under the Indenture as provided in this Supplemental Indenture. | |||
(b) | Upon the designation of a Guaranteeing Subsidiary as an Unrestricted Subsidiary in accordance with the terms of the Indenture, such Guaranteeing Subsidiary shall be released and relieved of its obligations under its Subsidiary Guarantee and this Supplemental Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate and an Opinion of Counsel to the effect that such designation of such Guaranteeing Subsidiary as an Unrestricted Subsidiary was made by the Company in accordance with the provisions of the Indenture, including without limitation Section 4.07 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of such Guaranteeing Subsidiary from its obligations under its Subsidiary Guarantee. Any Guaranteeing Subsidiary not released from its Obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other Obligations of any Guaranteeing Subsidiary under the Indenture as provided herein. | ||
(c) | Each Guaranteeing Subsidiary shall be released and relieved of its obligations under this Supplemental Indenture in accordance with, and subject to, Section 4.18 of the Indenture. |
5
6
Dated: October 1, 2009 | L-3 COMMUNICATIONS CORPORATION | |||||||
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By: | |||||||
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Title: Senior Vice President, General Counsel and
Corporate Secretary |
As Guaranteeing Subsidiaries | ||||||
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By: | |||||
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Title: Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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By: | |||||
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Name: |
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS VERTEX AEROSPACE | ||||||
LLC, as Sole Member | ||||||
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By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS | ||||||
L.P., as Sole Member | ||||||
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By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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By: | |||||
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Name: |
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS | ||||||
L.P., as Sole Member | ||||||
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By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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By: | |||||
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Name: |
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole | ||||||
Member | ||||||
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By: | |||||
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Name: |
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Title: Senior Vice President, General Counsel and Corporate | |||||
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Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
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By: | |||||
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Name: |
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Title:
Senior Vice President, General Counsel and Corporate
Secretary |
Dated: October 1, 2009
THE BANK OF NEW YORK MELLON,
as Trustee
By:
Title: Assistant Vice President
As Guaranteeing Subsidiaries | ||||||
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By: | |||||
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Title: Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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By: | |||||
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Name: |
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS VERTEX AEROSPACE | ||||||
LLC, as Sole Member | ||||||
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||||||
By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS | ||||||
L.P., as Sole Member | ||||||
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By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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By: | |||||
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Name: |
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS | ||||||
L.P., as Sole Member | ||||||
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By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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By: | |||||
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Name: |
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||||
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
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By: | |||||
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Name: |
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Title: | Senior Vice President. General Counsel and Corporate | ||||
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Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
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By: | |||||
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Name: |
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Title: | Senior Vice President, General Counsel and Corporate | ||||
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Secretary |
(a) | Such Guaranteeing Subsidiary, jointly and severally with all other current and future guarantors of the Notes (collectively, the Guarantors and each, a Guarantor), unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, regardless of the validity and enforceability of the Indenture, the Notes or the Obligations of the Company under the Indenture or the Notes, that: |
(i) | the principal of, premium, interest and Additional Amounts, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, interest and Additional Amounts, if any, on the Notes, to the extent lawful, and all other Obligations of the Company to the Holders or the Trustee thereunder or under the Indenture will be promptly paid in full, all in accordance with the terms thereof; and |
1
(ii) | in case of any extension of time for payment or renewal of any Notes or any of such other Obligations, that the same will be promptly paid in full when due in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. |
(b) | Notwithstanding the foregoing, in the event that this Subsidiary Guarantee would constitute or result in a violation of any applicable fraudulent conveyance or similar law of any relevant jurisdiction, the liability of such Guaranteeing Subsidiary under this Supplemental Indenture and its Subsidiary Guarantee shall be reduced to the maximum amount permissible under such fraudulent conveyance or similar law. |
(a) | To evidence its Subsidiary Guarantee set forth in this Supplemental Indenture, such Guaranteeing Subsidiary hereby agrees that a notation of such Subsidiary Guarantee substantially in the form of Exhibit F to the Indenture shall be endorsed by an officer of such Guaranteeing Subsidiary on each Note authenticated and delivered by the Trustee after the date hereof. | ||
(b) | Notwithstanding the foregoing, such Guaranteeing Subsidiary hereby agrees that its Subsidiary Guarantee set forth herein shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee. | ||
(c) | If an Officer whose signature is on this Supplemental Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless. | ||
(d) | The delivery of any Note by the Trustee, after the authentication thereof under the Indenture, shall constitute due delivery of the Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each Guaranteeing Subsidiary. | ||
(e) | Each Guaranteeing Subsidiary hereby agrees that its Obligations hereunder shall be unconditional, regardless of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. | ||
(f) | Each Guaranteeing Subsidiary hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands |
2
whatsoever and covenants that its Subsidiary Guarantee made pursuant to this Supplemental Indenture will not be discharged except by complete performance of the Obligations contained in the Notes and the Indenture. | |||
(g) | If any Holder or the Trustee is required by any court or otherwise to return to the Company or any Guaranteeing Subsidiary, or any custodian, Trustee, liquidator or other similar official acting in relation to either the Company or such Guaranteeing Subsidiary, any amount paid by either to the Trustee or such Holder, the Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the extent theretofore discharged, shall be reinstated in full force and effect. | ||
(h) | Each Guaranteeing Subsidiary agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Obligations guaranteed hereby until payment in full of all Obligations guaranteed hereby. Each Guaranteeing Subsidiary further agrees that, as between such Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand: |
(i) | the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of the Subsidiary Guarantee made pursuant to this Supplemental Indenture, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby; and | ||
(ii) | in the event of any declaration of acceleration of such Obligations as provided in Article 6 of the Indenture, such Obligations (whether or not due and payable) shall forthwith become due and payable by such Guaranteeing Subsidiary for the purpose of the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(i) | Each Guaranteeing Subsidiary shall have the right to seek contribution from any other non-paying Guaranteeing Subsidiary so long as the exercise of such right does not impair the rights of the Holders or the Trustee under the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(a) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into the Company or any other Guarantor or shall prevent any transfer, sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to the Company or any other Guarantor. |
3
(b) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into a corporation or corporations other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary), or successive consolidations or mergers in which a Guaranteeing Subsidiary or its successor or successors shall be a party or parties, or shall prevent any sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to a corporation other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary) authorized to acquire and operate the same; provided, however, that each Guaranteeing Subsidiary hereby covenants and agrees that (i) subject to the Indenture, upon any such consolidation, merger, sale or conveyance, the due and punctual performance and observance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiaries, shall be expressly assumed (in the event that such Guaranteeing Subsidiary is not the surviving corporation in the merger), by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the corporation formed by such consolidation, or into which such Guaranteeing Subsidiary shall have been merged, or by the corporation which shall have acquired such property and (ii) immediately after giving effect to such consolidation, merger, sale or conveyance no Default or Event of Default exists. | ||
(c) | In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor corporation, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and the due and punctual performance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiary, such successor corporation shall succeed to and be substituted for such Guaranteeing Subsidiary with the same effect as if it had been named herein as the Guaranteeing Subsidiary. Such successor corporation thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon the Notes issuable under the Indenture which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all respects have the same legal rank and benefit under the Indenture and this Supplemental Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of the Indenture and this Supplemental Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution hereof. |
(a) | Concurrently with any sale of assets (including, if applicable, all of the Capital Stock of a Guaranteeing Subsidiary), all Liens, if any, in favor of |
4
the Trustee in the assets sold thereby shall be released; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture. If the assets sold in such sale or other disposition include all or substantially all of the assets of a Guaranteeing Subsidiary or all of the Capital Stock of a Guaranteeing Subsidiary, then the Guaranteeing Subsidiary (in the event of a sale or other disposition of all of the Capital Stock of such Guaranteeing Subsidiary) or the Person acquiring the property (in the event of a sale or other disposition of all or substantially all of the assets of such Guaranteeing Subsidiary) shall be released from and relieved of its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate to the effect that such sale or other disposition was made by the Company or the Guaranteeing Subsidiary, as the case may be, in accordance with the provisions of the Indenture and this Supplemental Indenture, including without limitation, Section 4.10 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of the Guaranteeing Subsidiary from its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto. If the Guaranteeing Subsidiary is not released from its obligations under its Subsidiary Guarantee, it shall remain liable for the full amount of principal of and interest on the Notes and for the other obligations of such Guaranteeing Subsidiary under the Indenture as provided in this Supplemental Indenture. |
(b) | Upon the designation of a Guaranteeing Subsidiary as an Unrestricted Subsidiary in accordance with the terms of the Indenture, such Guaranteeing Subsidiary shall be released and relieved of its Obligations under its Subsidiary Guarantee and this Supplemental Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate and an Opinion of Counsel to the effect that such designation of such Guaranteeing Subsidiary as an Unrestricted Subsidiary was made by the Company in accordance with the provisions of the Indenture, including without limitation Section 4.07 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of such Guaranteeing Subsidiary from its Obligations under its Subsidiary Guarantee. Any Guaranteeing Subsidiary not released from its Obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other Obligations of any Guaranteeing Subsidiary under the Indenture as provided herein. | ||
(c) | Each Guaranteeing Subsidiary shall be released and relieved of its obligations under this Supplemental Indenture in accordance with, and subject to, Section 4.18 of the Indenture. |
5
6
Dated: October 1, 2009 | L-3 COMMUNICATIONS CORPORATION | |||||||
|
||||||||
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By: | |||||||
|
|
|||||||
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Title: Senior Vice President, General Counsel and
Corporate Secretary |
As Guaranteeing Subsidiaries | ||||||
|
||||||
|
By: | |||||
|
|
|||||
|
Title: Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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||||||
|
By: | |||||
|
Name: |
|
||||
|
Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS VERTEX AEROSPACE | ||||||
LLC, as Sole Member | ||||||
|
||||||
By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS | ||||||
L.P., as Sole Member | ||||||
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||||||
By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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By: | |||||
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Name: |
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||||
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS | ||||||
L.P., as Sole Member | ||||||
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||||||
By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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||||||
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By: | |||||
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Name: |
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||||
|
Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||||
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||||||
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By: | |||||
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Name: |
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||||
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Title: | Senior Vice President, General Counsel and Corporate | ||||
|
Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||||
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By: | |||||
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Name: |
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||||
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Title: | Senior Vice President, General Counsel and Corporate | ||||
|
Secretary |
Dated: October 1, 2009
THE BANK OF NEW YORK MELLON,
as Trustee
By:
Title: Assistant Vice President
As Guaranteeing Subsidiaries | ||||||
|
||||||
|
By: | |||||
|
|
|||||
|
Title: Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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||||||
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By: | |||||
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Name: |
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||||
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS VERTEX AEROSPACE | ||||||
LLC, as Sole Member | ||||||
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||||||
By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS | ||||||
L.P., as Sole Member | ||||||
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By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
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By: | |||||
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Name: |
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||||
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Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS INTEGRATED SYSTEMS | ||||||
L.P., as Sole Member | ||||||
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||||||
By: L-3 COMMUNICATIONS AIS GP CORPORATION, | ||||||
as General Partner | ||||||
|
||||||
|
By: | |||||
|
||||||
|
Name: | Steven M. Post | ||||
|
Title: | Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
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By: | |||||
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||||||
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Name: | Steven M. Post | ||||
|
Title: | Senior Vice President, General Counsel and Corporate | ||||
|
Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||||
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||||||
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By: | |||||
|
||||||
|
Name:
Title: |
Steven M. Post
Senior Vice President, General Counsel and Corporate |
||||
|
Secretary |
(a) | Such Guaranteeing Subsidiary, jointly and severally with all other current and future guarantors of the Notes (collectively, the Guarantors and each, a Guarantor), unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, regardless of the validity and enforceability of the Indenture, the Notes or the Obligations of the Company under the Indenture or the Notes, that: |
(i) | the principal of, premium, interest and Additional Interest, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, interest and Additional Amounts, if any, on the Notes, to the extent lawful, and all other Obligations of the Company to the Holders or the Trustee thereunder or under the Indenture will be promptly paid in full, all in accordance with the terms thereof; and |
1
(ii) | in case of any extension of time for payment or renewal of any Notes or any of such other Obligations, that the same will be promptly paid in full when due in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. |
(b) | Notwithstanding the foregoing, in the event that this Subsidiary Guarantee would constitute or result in a violation of any applicable fraudulent conveyance or similar law of any relevant jurisdiction, the liability of such Guaranteeing Subsidiary under this Supplemental Indenture and its Subsidiary Guarantee shall be reduced to the maximum amount permissible under such fraudulent conveyance or similar law. |
(a) | To evidence its Subsidiary Guarantee set forth in this Supplemental Indenture, such Guaranteeing Subsidiary hereby agrees that a notation of such Subsidiary Guarantee substantially in the form of Exhibit F to the Indenture shall be endorsed by an officer of such Guaranteeing Subsidiary on each Note authenticated and delivered by the Trustee after the date hereof. | ||
(b) | Notwithstanding the foregoing, such Guaranteeing Subsidiary hereby agrees that its Subsidiary Guarantee set forth herein shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee. | ||
(c) | If an Officer whose signature is on this Supplemental Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless. | ||
(d) | The delivery of any Note by the Trustee, after the authentication thereof under the Indenture, shall constitute due delivery of the Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each Guaranteeing Subsidiary. | ||
(e) | Each Guaranteeing Subsidiary hereby agrees that its Obligations hereunder shall be unconditional, regardless of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. | ||
(f) | Each Guaranteeing Subsidiary hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that its Subsidiary Guarantee made pursuant |
2
to this Supplemental Indenture will not be discharged except by complete performance of the Obligations contained in the Notes and the Indenture. | |||
(g) | If any Holder or the Trustee is required by any court or otherwise to return to the Company or any Guaranteeing Subsidiary, or any custodian, Trustee, liquidator or other similar official acting in relation to either the Company or such Guaranteeing Subsidiary, any amount paid by either to the Trustee or such Holder, the Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the extent theretofore discharged, shall be reinstated in full force and effect. | ||
(h) | Each Guaranteeing Subsidiary agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Obligations guaranteed hereby until payment in full of all Obligations guaranteed hereby. Each Guaranteeing Subsidiary further agrees that, as between such Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand: |
(i) | the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of the Subsidiary Guarantee made pursuant to this Supplemental Indenture, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby; and | ||
(ii) | in the event of any declaration of acceleration of such Obligations as provided in Article 6 of the Indenture, such Obligations (whether or not due and payable) shall forthwith become due and payable by such Guaranteeing Subsidiary for the purpose of the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(i) | Each Guaranteeing Subsidiary shall have the right to seek contribution from any other non-paying Guaranteeing Subsidiary so long as the exercise of such right does not impair the rights of the Holders or the Trustee under the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(a) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into the Company or any other Guarantor or shall prevent any transfer, sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to the Company or any other Guarantor. | ||
(b) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary |
3
with or into a corporation or corporations other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary), or successive consolidations or mergers in which a Guaranteeing Subsidiary or its successor or successors shall be a party or parties, or shall prevent any sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to a corporation other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary) authorized to acquire and operate the same; provided, however, that each Guaranteeing Subsidiary hereby covenants and agrees that (i) subject to the Indenture, upon any such consolidation, merger, sale or conveyance, the due and punctual performance and observance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiaries, shall be expressly assumed (in the event that such Guaranteeing Subsidiary is not the surviving corporation in the merger), by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the corporation formed by such consolidation, or into which such Guaranteeing Subsidiary shall have been merged, or by the corporation which shall have acquired such property and (ii) immediately after giving effect to such consolidation, merger, sale or conveyance no Default or Event of Default exists. | |||
(c) | In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor corporation, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and the due and punctual performance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiary, such successor corporation shall succeed to and be substituted for such Guaranteeing Subsidiary with the same effect as if it had been named herein as the Guaranteeing Subsidiary. Such successor corporation thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon the Notes issuable under the Indenture which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all respects have the same legal rank and benefit under the Indenture and this Supplemental Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of the Indenture and this Supplemental Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution hereof. |
(a) | Concurrently with any sale of assets (including, if applicable, all of the Capital Stock of a Guaranteeing Subsidiary), all Liens, if any, in favor of the Trustee in the assets sold thereby shall be released; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture. If the assets sold in such sale or other disposition |
4
include all or substantially all of the assets of a Guaranteeing Subsidiary or all of the Capital Stock of a Guaranteeing Subsidiary, then the Guaranteeing Subsidiary (in the event of a sale or other disposition of all of the Capital Stock of such Guaranteeing Subsidiary) or the Person acquiring the property (in the event of a sale or other disposition of all or substantially all of the assets of such Guaranteeing Subsidiary) shall be released from and relieved of its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate to the effect that such sale or other disposition was made by the Company or the Guaranteeing Subsidiary, as the case may be, in accordance with the provisions of the Indenture and this Supplemental Indenture, including without limitation, Section 4.10 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of the Guaranteeing Subsidiary from its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto. If the Guaranteeing Subsidiary is not released from its obligations under its Subsidiary Guarantee, it shall remain liable for the full amount of principal of and interest on the Notes and for the other obligations of such Guaranteeing Subsidiary under the Indenture as provided in this Supplemental Indenture. | |||
(b) | Upon the designation of a Guaranteeing Subsidiary as an Unrestricted Subsidiary in accordance with the terms of the Indenture, such Guaranteeing Subsidiary shall be released and relieved of its Obligations under its Subsidiary Guarantee and this Supplemental Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate and an Opinion of Counsel to the effect that such designation of such Guaranteeing Subsidiary as an Unrestricted Subsidiary was made by the Company in accordance with the provisions of the Indenture, including without limitation Section 4.07 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of such Guaranteeing Subsidiary from its Obligations under its Subsidiary Guarantee. Any Guaranteeing Subsidiary not released from its Obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other Obligations of any Guaranteeing Subsidiary under the Indenture as provided herein. | ||
(c) | Each Guaranteeing Subsidiary shall be released and relieved of its obligations under this Supplemental Indenture in accordance with, and subject to, Section 4.18 of the Indenture. |
5
6
Dated: October 1, 2009 |
L-3 COMMUNICATIONS CORPORATION
|
|||
By: | ||||
Name: | Steven M. Post | |||
Title: Senior Vice President, General Counsel and Corporate Secretary | ||||
As Guaranteeing Subsidiaries
|
||||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President and Secretary | |||
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President, General Counsel and Corporate | |||
Secretary | ||||
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President, General Counsel and Corporate | |||
Secretary | ||||
Dated: October 1, 2009
THE BANK OF NEW YORK MELLON,
as Trustee
By:
Name:
Title: Assistant Vice President
As Guaranteeing Subsidiaries
|
||||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President and Secretary | |||
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President, General Counsel and Corporate | |||
Secretary | ||||
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President, General Counsel and Corporate | |||
Secretary | ||||
(a) | Such Guaranteeing Subsidiary, jointly and severally with all other current and future guarantors of the Notes (collectively, the Guarantors and each, a Guarantor), unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, regardless of the validity and enforceability of the Indenture, the Notes or the Obligations of the Company under the Indenture or the Notes, that: |
(i) | the principal of, premium, interest and Additional Interest, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, interest and Additional Amounts, if any, on the Notes, to the extent lawful, and all other Obligations of the Company to the Holders or the Trustee thereunder or under the Indenture will be promptly paid in full, all in accordance with the terms thereof; and |
1
(ii) | in case of any extension of time for payment or renewal of any Notes or any of such other Obligations, that the same will be promptly paid in full when due in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. |
(b) | Notwithstanding the foregoing, in the event that this Subsidiary Guarantee would constitute or result in a violation of any applicable fraudulent conveyance or similar law of any relevant jurisdiction, the liability of such Guaranteeing Subsidiary under this Supplemental Indenture and its Subsidiary Guarantee shall be reduced to the maximum amount permissible under such fraudulent conveyance or similar law. |
(a) | To evidence its Subsidiary Guarantee set forth in this Supplemental Indenture, such Guaranteeing Subsidiary hereby agrees that a notation of such Subsidiary Guarantee substantially in the form of Exhibit F to the Indenture shall be endorsed by an officer of such Guaranteeing Subsidiary on each Note authenticated and delivered by the Trustee after the date hereof. | ||
(b) | Notwithstanding the foregoing, such Guaranteeing Subsidiary hereby agrees that its Subsidiary Guarantee set forth herein shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee. | ||
(c) | If an Officer whose signature is on this Supplemental Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless. | ||
(d) | The delivery of any Note by the Trustee, after the authentication thereof under the Indenture, shall constitute due delivery of the Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each Guaranteeing Subsidiary. | ||
(e) | Each Guaranteeing Subsidiary hereby agrees that its Obligations hereunder shall be unconditional, regardless of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. | ||
(f) | Each Guaranteeing Subsidiary hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that its Subsidiary Guarantee made pursuant |
2
to this Supplemental Indenture will not be discharged except by complete performance of the Obligations contained in the Notes and the Indenture. | |||
(g) | If any Holder or the Trustee is required by any court or otherwise to return to the Company or any Guaranteeing Subsidiary, or any custodian, Trustee, liquidator or other similar official acting in relation to either the Company or such Guaranteeing Subsidiary, any amount paid by either to the Trustee or such Holder, the Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the extent theretofore discharged, shall be reinstated in full force and effect. | ||
(h) | Each Guaranteeing Subsidiary agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Obligations guaranteed hereby until payment in full of all Obligations guaranteed hereby. Each Guaranteeing Subsidiary further agrees that, as between such Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand: |
(i) | the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of the Subsidiary Guarantee made pursuant to this Supplemental Indenture, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby; and | ||
(ii) | in the event of any declaration of acceleration of such Obligations as provided in Article 6 of the Indenture, such Obligations (whether or not due and payable) shall forthwith become due and payable by such Guaranteeing Subsidiary for the purpose of the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(i) | Each Guaranteeing Subsidiary shall have the right to seek contribution from any other non-paying Guaranteeing Subsidiary so long as the exercise of such right does not impair the rights of the Holders or the Trustee under the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(a) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into the Company or any other Guarantor or shall prevent any transfer, sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to the Company or any other Guarantor. | ||
(b) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary |
3
with or into a corporation or corporations other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary), or successive consolidations or mergers in which a Guaranteeing Subsidiary or its successor or successors shall be a party or parties, or shall prevent any sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to a corporation other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary) authorized to acquire and operate the same; provided, however, that each Guaranteeing Subsidiary hereby covenants and agrees that (i) subject to the Indenture, upon any such consolidation, merger, sale or conveyance, the due and punctual performance and observance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiaries, shall be expressly assumed (in the event that such Guaranteeing Subsidiary is not the surviving corporation in the merger), by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the corporation formed by such consolidation, or into which such Guaranteeing Subsidiary shall have been merged, or by the corporation which shall have acquired such property and (ii) immediately after giving effect to such consolidation, merger, sale or conveyance no Default or Event of Default exists. | |||
(c) | In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor corporation, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and the due and punctual performance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiary, such successor corporation shall succeed to and be substituted for such Guaranteeing Subsidiary with the same effect as if it had been named herein as the Guaranteeing Subsidiary. Such successor corporation thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon the Notes issuable under the Indenture which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all respects have the same legal rank and benefit under the Indenture and this Supplemental Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of the Indenture and this Supplemental Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution hereof. |
(a) | Concurrently with any sale of assets (including, if applicable, all of the Capital Stock of a Guaranteeing Subsidiary), all Liens, if any, in favor of the Trustee in the assets sold thereby shall be released; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture. If the assets sold in such sale or other disposition |
4
include all or substantially all of the assets of a Guaranteeing Subsidiary or all of the Capital Stock of a Guaranteeing Subsidiary, then the Guaranteeing Subsidiary (in the event of a sale or other disposition of all of the Capital Stock of such Guaranteeing Subsidiary) or the Person acquiring the property (in the event of a sale or other disposition of all or substantially all of the assets of such Guaranteeing Subsidiary) shall be released from and relieved of its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate to the effect that such sale or other disposition was made by the Company or the Guaranteeing Subsidiary, as the case may be, in accordance with the provisions of the Indenture and this Supplemental Indenture, including without limitation, Section 4.10 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of the Guaranteeing Subsidiary from its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto. If the Guaranteeing Subsidiary is not released from its obligations under its Subsidiary Guarantee, it shall remain liable for the full amount of principal of and interest on the Notes and for the other obligations of such Guaranteeing Subsidiary under the Indenture as provided in this Supplemental Indenture. | |||
(b) | Upon the designation of a Guaranteeing Subsidiary as an Unrestricted Subsidiary in accordance with the terms of the Indenture, such Guaranteeing Subsidiary shall be released and relieved of its Obligations under its Subsidiary Guarantee and this Supplemental Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate and an Opinion of Counsel to the effect that such designation of such Guaranteeing Subsidiary as an Unrestricted Subsidiary was made by the Company in accordance with the provisions of the Indenture, including without limitation Section 4.07 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of such Guaranteeing Subsidiary from its Obligations under its Subsidiary Guarantee. Any Guaranteeing Subsidiary not released from its Obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other Obligations of any Guaranteeing Subsidiary under the Indenture as provided herein. | ||
(c) | Each Guaranteeing Subsidiary shall be released and relieved of its obligations under this Supplemental Indenture in accordance with, and subject to, Section 4.18 of the Indenture. |
5
6
Dated: October 1, 2009 |
L-3 COMMUNICATIONS CORPORATION
|
|||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President, General Counsel and | |||
Corporate Secretary | ||||
As Guaranteeing Subsidiaries
|
||||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President and Secretary | |||
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||
By: | ||||
Name: | Steven M. Post | |||
Title: Senior Vice President, General Counsel and
Corporate
Secretary |
||||
L-3 Communications Shared Services, LLC, a Delaware limited liability company
|
||||
By: L-3 COMMUNICATIONS CORPORATION, as Sole
Member |
||||
By: | ||||
Name: | Steven M. Post | |||
Title: Senior Vice President, General Counsel and
Corporate
Secretary |
||||
Dated: October 1, 2009
THE BANK OF NEW YORK MELLON,
as Trustee
By:
Name:
Title: Assistant Vice President
As Guaranteeing Subsidiaries
|
||||
By: | ||||
Name: | Steven M. Post | |||
Title: | Senior Vice President and Secretary | |||
By: L-3 COMMUNICATIONS CORPORATION, as
Sole
Member |
||||
By: | ||||
Name: | Steven M. Post | |||
Title: Senior Vice President, General Counsel and
Corporate
Secretary |
||||
By: L-3 COMMUNICATIONS CORPORATION, as
Sole
Member |
||||
By: | ||||
Name: | Steven M. Post | |||
Title: Senior Vice President, General Counsel and
Corporate
Secretary |
||||
(a) | Such Guaranteeing Subsidiary, jointly and severally with all other current and future guarantors of the Notes (collectively, the Guarantors and each, a Guarantor), unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, regardless of the validity and enforceability of the Indenture, the Notes or the Obligations of the Company under the Indenture or the Notes, that: |
(i) | the principal of, premium, interest and Additional Interest, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, interest and Additional Interest, if any, on the Notes, to the extent lawful, and all other Obligations of the Company to the Holders or the Trustee thereunder or under the Indenture will be promptly paid in full, all in accordance with the terms thereof; and |
1
(ii) | in case of any extension of time for payment or renewal of any Notes or any of such other Obligations, that the same will be promptly paid in full when due in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. |
(b) | Notwithstanding the foregoing, in the event that this Subsidiary Guarantee would constitute or result in a violation of any applicable fraudulent conveyance or similar law of any relevant jurisdiction, the liability of such Guaranteeing Subsidiary under this Supplemental Indenture and its Subsidiary Guarantee shall be reduced to the maximum amount permissible under such fraudulent conveyance or similar law. |
(a) | To evidence its Subsidiary Guarantee set forth in this Supplemental Indenture, such Guaranteeing Subsidiary hereby agrees that a notation of such Subsidiary Guarantee substantially in the form of Exhibit F to the Indenture shall be endorsed by an officer of such Guaranteeing Subsidiary on each Note authenticated and delivered by the Trustee after the date hereof. | ||
(b) | Notwithstanding the foregoing, such Guaranteeing Subsidiary hereby agrees that its Subsidiary Guarantee set forth herein shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee. | ||
(c) | If an Officer whose signature is on this Supplemental Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless. | ||
(d) | The delivery of any Note by the Trustee, after the authentication thereof under the Indenture, shall constitute due delivery of the Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each Guaranteeing Subsidiary. | ||
(e) | Each Guaranteeing Subsidiary hereby agrees that its Obligations hereunder shall be unconditional, regardless of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. | ||
(f) | Each Guaranteeing Subsidiary hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that its Subsidiary Guarantee made pursuant |
2
to this Supplemental Indenture will not be discharged except by complete performance of the Obligations contained in the Notes and the Indenture. | |||
(g) | If any Holder or the Trustee is required by any court or otherwise to return to the Company or any Guaranteeing Subsidiary, or any custodian, Trustee, liquidator or other similar official acting in relation to either the Company or such Guaranteeing Subsidiary, any amount paid by either to the Trustee or such Holder, the Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the extent theretofore discharged, shall be reinstated in full force and effect. | ||
(h) | Each Guaranteeing Subsidiary agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Obligations guaranteed hereby until payment in full of all Obligations guaranteed hereby. Each Guaranteeing Subsidiary further agrees that, as between such Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand: |
(i) | the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of the Subsidiary Guarantee made pursuant to this Supplemental Indenture, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby; and | ||
(ii) | in the event of any declaration of acceleration of such Obligations as provided in Article 6 of the Indenture, such Obligations (whether or not due and payable) shall forthwith become due and payable by such Guaranteeing Subsidiary for the purpose of the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(i) | Each Guaranteeing Subsidiary shall have the right to seek contribution from any other non-paying Guaranteeing Subsidiary so long as the exercise of such right does not impair the rights of the Holders or the Trustee under the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(a) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into the Company or any other Guarantor or shall prevent any transfer, sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to the Company or any other Guarantor. | ||
(b) | Except as set forth in Articles 4 and 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary |
3
with or into a corporation or corporations other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary), or successive consolidations or mergers in which a Guaranteeing Subsidiary or its successor or successors shall be a party or parties, or shall prevent any sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to a corporation other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary) authorized to acquire and operate the same; provided, however, that each Guaranteeing Subsidiary hereby covenants and agrees that (i) subject to the Indenture, upon any such consolidation, merger, sale or conveyance, the due and punctual performance and observance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiaries, shall be expressly assumed (in the event that such Guaranteeing Subsidiary is not the surviving corporation in the merger), by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the corporation formed by such consolidation, or into which such Guaranteeing Subsidiary shall have been merged, or by the corporation which shall have acquired such property and (ii) immediately after giving effect to such consolidation, merger, sale or conveyance no Default or Event of Default exists. | |||
(c) | In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor corporation, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and the due and punctual performance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiary, such successor corporation shall succeed to and be substituted for such Guaranteeing Subsidiary with the same effect as if it had been named herein as the Guaranteeing Subsidiary. Such successor corporation thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon the Notes issuable under the Indenture which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all respects have the same legal rank and benefit under the Indenture and this Supplemental Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of the Indenture and this Supplemental Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution hereof. |
(a) | Concurrently with any sale of assets (including, if applicable, all of the Capital Stock of a Guaranteeing Subsidiary), all Liens, if any, in favor of the Trustee in the assets sold thereby shall be released; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture (it being understood that only such portion of the Net |
4
Proceeds as is required to be applied on or before the date of such sale or other disposition in accordance with the terms of the Indenture needs to be applied in accordance therewith at such time). If the assets sold in such sale or other disposition include all or substantially all of the assets of a Guaranteeing Subsidiary or all of the Capital Stock of a Guaranteeing Subsidiary, then the Guaranteeing Subsidiary (in the event of a sale or other disposition of all of the Capital Stock of such Guaranteeing Subsidiary) or the Person acquiring the property (in the event of a sale or other disposition of all or substantially all of the assets of such Guaranteeing Subsidiary) shall be released from and relieved of its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto; provided that in the event of an Asset Sale, the Net Proceeds from such sale or other disposition are treated in accordance with the provisions of Section 4.10 of the Indenture (it being understood that only such portion of the Net Proceeds as is required to be applied on or before the date of such sale or other disposition in accordance with the terms of the Indenture needs to be applied in accordance therewith at such time). Upon delivery by the Company to the Trustee of an Officers Certificate to the effect that such sale or other disposition was made by the Company or the Guaranteeing Subsidiary, as the case may be, in accordance with the provisions of the Indenture and this Supplemental Indenture, including without limitation, Section 4.10 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of the Guaranteeing Subsidiary from its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto. If the Guaranteeing Subsidiary is not released from its obligations under its Subsidiary Guarantee, it shall remain liable for the full amount of principal of and interest on the Notes and for the other obligations of such Guaranteeing Subsidiary under the Indenture as provided in this Supplemental Indenture. |
(b) | Upon the designation of a Guaranteeing Subsidiary as an Unrestricted Subsidiary in accordance with the terms of the Indenture or upon the release of a Guarantor from its Guarantees of, and all pledges and security interests granted in connection with, all other Indebtedness of the Company or any of their Restricted Subsidiaries, such Guaranteeing Subsidiary shall be released and relieved of its Obligations under its Subsidiary Guarantee and this Supplemental Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate and an Opinion of Counsel to the effect that such designation of such Guaranteeing Subsidiary as an Unrestricted Subsidiary was made by the Company in accordance with the provisions of the Indenture, including without limitation Section 4.07 of the Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of such Guaranteeing Subsidiary from its Obligations under its Subsidiary Guarantee. Any Guaranteeing Subsidiary not released from its Obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other Obligations of any Guaranteeing Subsidiary under the Indenture as provided herein. |
5
(c) | Each Guaranteeing Subsidiary shall be released and relieved of its obligations under this Supplemental Indenture in accordance with, and subject to, Section 4.18 of the Indenture. |
6
Dated: October 1, 2009 | L-3 COMMUNICATIONS CORPORATION | |||||
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||||||
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By: | |||||
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|||||
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Title: Senior Vice President, General Counsel and Corporate Secretary |
As Guaranteeing Subsidiaries | ||||||
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By: | |||||
|
Title: Senior Vice President and Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole Member | ||||||
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||||||
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By: | |||||
|
Name: |
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||||
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Title:
Senior Vice President, General Counsel and
Corporate Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as Sole Member | ||||||
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||||||
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By: | |||||
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Name: |
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||||
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Title:
Senior Vice President, General Counsel and
Corporate Secretary |
Dated: October 1, 2009
THE BANK OF NEW YORK MELLON,
as Trustee
By:
Title: Assistant Vice President
1
As Guaranteeing Subsidiaries | ||||||
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By: | |||||
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|||||
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Title: Senior Vice President and Secretary |
2
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By:
L-3 COMMUNICATIONS CORPORATION,
as
Sole Member |
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||||||
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By: | |||||
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Name: |
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Title:
Senior Vice President, General Counsel and
Corporate Secretary |
By: L-3 COMMUNICATIONS CORPORATION, as
Sole Member |
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By: | |||||
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Name: |
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Title: Senior Vice President, General Counsel and Corporate Secretary |
3
(a) | Such Guaranteeing Subsidiary, jointly and severally with all other current and future guarantors of the CODES (collectively, the Guarantors and each, a Guarantor), unconditionally guarantees to each Holder of a CODE authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, regardless of the validity and enforceability of the Indenture, the CODES or the Obligations of the Company under the Indenture or the CODES, that: |
(i) | the principal of and interest (including Contingent Interest and Additional Interest, if any) on the CODES will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest (including Contingent Interest and Additional Interest, if any) on the CODES, to the extent lawful, and all other Obligations of the Company to the Holders or the Trustee thereunder or under the Indenture will be promptly paid in full, all in accordance with the terms thereof; and |
1
(ii) | in case of any extension of time for payment or renewal of any CODES or any of such other Obligations, that the same will be promptly paid in full when due in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. |
(b) | Notwithstanding the foregoing, in the event that this Subsidiary Guarantee would constitute or result in a violation of any applicable fraudulent conveyance or similar law of any relevant jurisdiction, the liability of such Guaranteeing Subsidiary under this Supplemental Indenture and its Subsidiary Guarantee shall be reduced to the maximum amount permissible under such fraudulent conveyance or similar law. |
(a) | To evidence its Subsidiary Guarantee set forth in this Supplemental Indenture, such Guaranteeing Subsidiary hereby agrees that a notation of such Subsidiary Guarantee substantially in the form of Exhibit A to the Indenture shall be endorsed by an Officer of such Guaranteeing Subsidiary on each CODE authenticated and delivered by the Trustee after the date hereof. | ||
(b) | Notwithstanding the foregoing, such Guaranteeing Subsidiary hereby agrees that its Subsidiary Guarantee set forth herein shall remain in full force and effect notwithstanding any failure to endorse on each CODE a notation of such Subsidiary Guarantee. | ||
(c) | If an Officer whose signature is on this Supplemental Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates the CODE on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless. | ||
(d) | The delivery of any CODE by the Trustee, after the authentication thereof under the Indenture, shall constitute due delivery of the Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each Guaranteeing Subsidiary. | ||
(e) | Each Guaranteeing Subsidiary hereby agrees that its Obligations hereunder shall, to the extent permitted by applicable law, be unconditional, regardless of the validity, regularity or enforceability of the CODES or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the CODES with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. | ||
(f) | Each Guaranteeing Subsidiary, to the extent permitted by applicable law, hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that its |
2
Subsidiary Guarantee made pursuant to this Supplemental Indenture will not be discharged except by complete performance of the Obligations contained in the CODES and the Indenture. | |||
(g) | If any Holder or the Trustee is required by any court or otherwise to return to the Company or any Guaranteeing Subsidiary, or any Custodian, Trustee, liquidator or other similar official acting in relation to either the Company or such Guaranteeing Subsidiary, any amount paid by either to the Trustee or such Holder, the Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the extent theretofore discharged, shall be reinstated in full force and effect. | ||
(h) | Each Guaranteeing Subsidiary agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Obligations guaranteed hereby until payment in full of all Obligations guaranteed hereby. Each Guaranteeing Subsidiary further agrees that, as between such Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand: |
(i) | the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article 4 of the Indenture for the purposes of the Subsidiary Guarantee made pursuant to this Supplemental Indenture, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby; | ||
(ii) | in the event of any declaration of acceleration of such Obligations as provided in Article 4 of the Indenture, such Obligations (whether or not due and payable) shall forthwith become due and payable by such Guaranteeing Subsidiary for the purpose of the Subsidiary Guarantee made pursuant to this Supplemental Indenture; and | ||
(iii) | Each Guaranteeing Subsidiary shall have the right to seek contribution from any other non-paying Guaranteeing Subsidiary so long as the exercise of such right does not impair the rights of the Holders or the Trustee under the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(a) | Except as set forth in Articles 6 and 9 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the CODES shall prevent (i) any consolidation or merger of any Guaranteeing Subsidiary with or into the Company or any other Guarantor, (ii) any transfer, sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to the Company or any other Guarantor or (iii) any merger of a Guarantor with or into with an Affiliate of that Guarantor that has not significant assets or liabilities and was incorporated solely for the purpose of reincorporating such Guarantor in another State of the United States so long as the amount of |
3
Indebtedness of the Company and the domestic non-Guarantor subsidiaries is not increased thereby. | |||
(b) | Except as set forth in Article 9 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the CODES shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into any Person organized under the laws of the United States of America, any state thereof, the District of Columbia or any territory thereof other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary), or successive consolidations or mergers in which a Guaranteeing Subsidiary or its successor or successors shall be a party or parties, or shall prevent any sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to any Person organized under the laws of the United States of America, any state thereof, the District of Columbia or any territory thereof other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary) authorized to acquire and operate the same; provided, however, that each Guaranteeing Subsidiary hereby covenants and agrees that (i) subject to the Indenture, upon any such consolidation, merger, sale or conveyance, the due and punctual performance and observance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiaries, shall be expressly assumed (in the event that such Guaranteeing Subsidiary is not the surviving corporation in the merger), by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by any Person formed by such consolidation, or into which such Guaranteeing Subsidiary shall have been merged, or by any Person which shall have acquired such property, (ii) immediately after giving effect to such consolidation, merger, sale or conveyance no Default or Event of Default exists and (iii) such transaction will only be permitted under the Indenture if it would be permitted under the terms of all of the indentures governing the Outstanding Senior Subordinated Notes as the same are in effect on the date of the Indenture (whether or not those indentures are subsequently amended, waived, modified or terminated or expire and whether or not any of these notes continue to be outstanding). | ||
(c) | In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor corporation, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and the due and punctual performance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiary, such successor Person shall succeed to and be substituted for such Guaranteeing Subsidiary with the same effect as if it had been named herein as the Guaranteeing Subsidiary. Such successor Person thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon the CODES issuable under the Indenture which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all respects have the same legal rank and |
4
benefit under the Indenture and this Supplemental Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of the Indenture and this Supplemental Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution hereof. |
(a) | Concurrently with any sale of assets (including, if applicable, all of the Capital Stock of a Guaranteeing Subsidiary), all Liens, if any, in favor of the Trustee in the assets sold thereby shall be released. If the assets sold in such sale or other disposition (including by way of merger or consolidation) include all or substantially all of the assets of a Guaranteeing Subsidiary or all of the Capital Stock of a Guaranteeing Subsidiary, then the Guaranteeing Subsidiary (in the event of a sale or other disposition of all of the Capital Stock of such Guaranteeing Subsidiary) or the Person acquiring the property (in the event of a sale or other disposition of all or substantially all of the assets of such Guaranteeing Subsidiary) shall be released from and relieved of its Obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto. Upon delivery by the Company to the Trustee of an Officers Certificate to the effect that such sale or other disposition was made by the Company or the Guaranteeing Subsidiary, as the case may be, in accordance with the provisions of the Indenture and this Supplemental Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of the Guaranteeing Subsidiary from its obligations under this Supplemental Indenture and its Subsidiary Guarantee made pursuant hereto. If the Guaranteeing Subsidiary is not released from its obligations under its Subsidiary Guarantee, it shall remain liable for the full amount of principal of and interest (including Contingent Interest and Additional Interest, if any) on the CODES and for the other obligations of such Guaranteeing Subsidiary under the Indenture as provided in this Supplemental Indenture. | ||
(b) | Upon the designation of a Guaranteeing Subsidiary as an Excluded Subsidiary in accordance with the terms of the Indenture and the indentures governing the Outstanding Senior Subordinated Notes as the same are in effect on the date of the Indenture (whether or not those indentures are subsequently amended, waived, modified or terminated or expire and whether or not any of those notes continue to be outstanding), such Guaranteeing Subsidiary shall be released and relieved of all of its obligations under its Subsidiary Guarantee and this Supplemental Indenture. Upon delivery by the Company to the Trustee of an Officers Certificate and an Opinion of Counsel to the effect that such designation of such Guaranteeing Subsidiary as an Unrestricted Subsidiary was made by the Company in accordance with the provisions of the Indenture and the indentures governing , the Outstanding Senior Subordinated Notes as the same are in effect on the date of the Indenture (whether or not those indentures are subsequently amended, waived, modified or terminated or expire and whether or not any of those notes continue to be outstanding), |
5
the Trustee shall execute any documents reasonably required in order to evidence the release of such Guaranteeing Subsidiary from its Obligations under its Subsidiary Guarantee. Any Guaranteeing Subsidiary not released from its obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of and interest on the CODES and for the other obligations of any Guaranteeing Subsidiary under the Indenture as provided herein. | |||
(c) | Upon any Guarantor being released from its guarantees of, and all pledges and security interests granted in connection with, Indebtedness of the Company or any of its Subsidiaries (other than a Foreign Subsidiary), such Guarantor shall be released and relieved of its obligations under this Supplemental Indenture. |
6
Dated: October 1, 2009 | L-3 COMMUNICATIONS HOLDINGS, INC. | |||||
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||||||
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By: | |||||
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|
|||||
|
Title: Senior Vice President, General Counsel and Corporate Secretary |
As Guaranteeing Subsidiaries | ||||||
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By: | |||||
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|
|||||
|
Title: Senior Vice President and Secretary | |||||
L-3 Communications Corporation, a Delaware corporation
| ||||||
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By: | |||||
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|||||
|
Title: Senior Vice President, General Counsel and Corporate Secretary |
Dated: October 1, 2009
THE BANK OF NEW YORK MELLON,
as Trustee
By:
Title: Assistant Vice President
As Guaranteeing Subsidiaries | ||||||
|
||||||
|
By: | |||||
|
||||||
|
Name: Steven M. Post | |||||
|
Title: Senior Vice President and Secretary |
ARTICLE 1. DEFINITIONS AND INCORPORATION BY REFERENCE
|
1 | |||
|
||||
Section 1.01
Definitions
|
1 | |||
Section 1.02
Other Definitions
|
11 | |||
Section 1.03
Incorporation by Reference of Trust Indenture Act
|
12 | |||
Section 1.04
Rules of Construction
|
12 | |||
|
||||
ARTICLE 2. THE NOTES
|
13 | |||
|
||||
Section 2.01
Form and Dating
|
13 | |||
Section 2.02
Execution and Authentication
|
13 | |||
Section 2.03
Registrar and Paying Agent
|
14 | |||
Section 2.04
Paying Agent To Hold Money In Trust
|
14 | |||
Section 2.05
Holder Lists
|
15 | |||
Section 2.06
Transfer and Exchange
|
15 | |||
Section 2.07
Replacement Notes
|
28 | |||
Section 2.08
Outstanding Notes
|
29 | |||
Section 2.09
Treasury Notes
|
29 | |||
Section 2.10
Temporary Notes
|
29 | |||
Section 2.11
Cancellation
|
29 | |||
Section 2.12
Defaulted Interest
|
30 | |||
Section 2.13
C
USIP
Numbers
|
30 | |||
|
||||
ARTICLE 3. REDEMPTION AND PREPAYMENT
|
30 | |||
|
||||
Section 3.01
Notices to Trustee
|
30 | |||
Section 3.02
Selection of Notes to Be Redeemed
|
30 | |||
Section 3.03
Notice Of Redemption
|
31 | |||
Section 3.04
Effect Of Notice Of Redemption
|
32 | |||
Section 3.05
Deposit Of Redemption Price
|
32 | |||
Section 3.06
Notes Redeemed In Part
|
32 | |||
Section 3.07
Optional Redemption
|
32 | |||
Section 3.08
Mandatory Redemption
|
33 | |||
|
||||
ARTICLE 4. COVENANTS
|
33 | |||
|
||||
Section 4.01
Payment Of Notes
|
33 | |||
Section 4.02
Maintenance Of Office Or Agency
|
33 | |||
Section 4.03
Reports
|
34 | |||
Section 4.04
Compliance Certificate
|
35 | |||
Section 4.05
Taxes
|
35 | |||
Section 4.06
Stay, Extension and Usury Laws
|
36 | |||
Section 4.07
Sale and Leaseback Transactions
|
36 | |||
Section 4.08
Liens
|
37 | |||
Section 4.09
Future Subsidiary Guarantees
|
37 | |||
Section 4.10
Corporate Existence
|
37 | |||
Section 4.11
Offer To Repurchase Upon Change Of Control Triggering Event
|
37 | |||
|
||||
ARTICLE 5. SUCCESSORS
|
39 | |||
|
||||
Section 5.01
Merger, Consolidation, Or Sale Of Assets
|
39 |
i
Section 5.02
Successor Person Substituted
|
39 | |||
Section 5.03
Delivery of Officers Certificate and Opinion of Counsel
|
39 | |||
|
||||
ARTICLE 6. DEFAULTS AND REMEDIES
|
39 | |||
|
||||
Section 6.01
Events of Default
|
39 | |||
Section 6.02
Acceleration
|
41 | |||
Section 6.03
Other Remedies
|
41 | |||
Section 6.04
Waiver of Past Defaults
|
41 | |||
Section 6.05
Control By Majority
|
42 | |||
Section 6.06
Limitation On Suits
|
42 | |||
Section 6.07
Rights of Holders of Notes to Receive Payment
|
42 | |||
Section 6.08
Collection Suit by Trustee
|
42 | |||
Section 6.09
Trustee May File Proofs Of Claim
|
43 | |||
Section 6.10
Priorities
|
43 | |||
Section 6.11
Undertaking for Costs
|
43 | |||
|
||||
ARTICLE 7. TRUSTEE
|
44 | |||
|
||||
Section 7.01
Duties Of Trustee
|
44 | |||
Section 7.02
Rights Of Trustee
|
45 | |||
Section 7.03
Individual Rights of Trustee
|
46 | |||
Section 7.04
Trustees Disclaimers
|
46 | |||
Section 7.05
Notice of Defaults
|
47 | |||
Section 7.06
Reports by Trustee to Holders of the Notes
|
47 | |||
Section 7.07
Compensation and Indemnity
|
47 | |||
Section 7.08
Replacement of Trustee
|
48 | |||
Section 7.09
Successor Trustee by Merger, Etc
|
49 | |||
Section 7.10
Eligibility; Disqualification
|
49 | |||
Section 7.11
Preferential Collection of Claims Against Company
|
49 | |||
|
||||
ARTICLE 8. LEGAL DEFEASANCE AND COVENANT DEFEASANCE
|
49 | |||
|
||||
Section 8.01
Option to Effect Legal Defeasance or Covenant Defeasance
|
49 | |||
Section 8.02
Legal Defeasance and Discharge
|
50 | |||
Section 8.03
Covenant Defeasance
|
50 | |||
Section 8.04
Conditions to Legal or Covenant Defeasance
|
51 | |||
Section 8.05
Deposited Money and Government Securities to be
held in Trust; Other Miscellaneous Provisions
|
52 | |||
Section 8.06
Repayment to Company
|
52 | |||
Section 8.07
Reinstatement
|
53 | |||
|
||||
ARTICLE 9. AMENDMENT, SUPPLEMENT AND WAIVER
|
53 | |||
|
||||
Section 9.01
Without Consent of Holders of Notes
|
53 | |||
Section 9.02
With Consent of Holders of Notes
|
54 | |||
Section 9.03
Compliance with Trust Indenture Act
|
55 | |||
Section 9.04
Revocation and Effect of Consents
|
55 | |||
Section 9.05
Notation on or Exchange of Notes
|
56 | |||
Section 9.06
Trustee to Sign Amendments, Etc
|
56 | |||
|
||||
ARTICLE 10. SUBSIDIARY GUARANTEES
|
56 | |||
|
||||
Section 10.01
Agreement to Guarantee
|
56 |
ii
Section 10.02
Execution and Delivery of Subsidiary Guarantees
|
57 | |||
Section 10.03
Guarantors May Consolidate, Etc. on Certain Terms
|
58 | |||
Section 10.04
Releases
|
58 | |||
Section 10.05
No Recourse Against Others
|
59 | |||
|
||||
ARTICLE 11. MISCELLANEOUS
|
59 | |||
|
||||
Section 11.01
Trust Indenture Act Controls
|
59 | |||
Section 11.02
Notices
|
59 | |||
Section 11.03
Communications By Holders of Notes with Other Holders of Notes
|
60 | |||
Section 11.04
Certificate and Opinion as to Conditions Precedent
|
60 | |||
Section 11.05
Statements required in Certificate or Opinion
|
61 | |||
Section 11.06
Rule by Trustee and Agents
|
61 | |||
Section 11.07
No Personal Liability of Directors, Officers, Employees and Stockholders
|
61 | |||
Section 11.08
Governing Law
|
62 | |||
Section 11.09
No Adverse Interpretation of other Agreements
|
62 | |||
Section 11.10
Successors
|
62 | |||
Section 11.11
Severability
|
62 | |||
Section 11.12
Counterpart Originals
|
62 | |||
Section 11.13
Table of Contents, Headings, Etc
|
62 | |||
Section 11.14
Waiver of Jury Trial
|
62 |
iii
EXHIBIT A
|
FORM OF NOTE | |
|
||
EXHIBIT B
|
FORM OF CERTIFICATE OF TRANSFER | |
|
||
EXHIBIT C
|
FORM OF CERTIFICATE OF EXCHANGE | |
|
||
EXHIBIT D
|
FORM OF CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTORS | |
|
||
EXHIBIT E
|
FORM OF SUPPLEMENTAL INDENTURE |
iv
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 | ||
|
(b) | 7.10 | ||
|
(c) | N.A. | ||
311
|
(a) | 7.11 | ||
|
(b) | 7.11 | ||
|
(c) | N.A. | ||
312
|
(a) | 2.05 | ||
|
(b) | 11.03 | ||
|
(c) | 11.03 | ||
313
|
(a) | 7.06 | ||
|
(b)(1) | N.A. | ||
|
(b)(2) | 7.07 | ||
|
(c) | 7.06; 11.02 | ||
|
(d) | 7.06 | ||
314
|
(a) | 4.03; 11.02 | ||
|
(b) | N.A. | ||
|
(c)(1) | 11.04 | ||
|
(c)(2) | 11.04 | ||
|
(c)(3) | N.A. | ||
|
(d) | N.A. | ||
|
(e) | 11.05 | ||
|
(f) | N.A. | ||
315
|
(a) | 7.01 | ||
|
(b) | 7.05; 11.02 | ||
|
(c) | 7.01 | ||
|
(d) | 7.01 | ||
|
(e) | 6.11 | ||
316
|
(a)(last sentence) | 2.09 | ||
|
(a)(1)(A) | 6.05 | ||
|
(a)(1)(B) | 6.04 | ||
|
(a)(2) | N.A. | ||
|
(b) | 6.07 | ||
|
(c) | 2.12 | ||
317
|
(a)(1) | 6.08 | ||
|
(a)(2) | 6.09 | ||
|
(b) | 2.04 | ||
318
|
(a) | 11.01 | ||
|
(b) | N.A. | ||
|
(c) | 11.01 |
* | This Cross-Reference Table is not part of the Indenture. |
v
2
3
4
5
6
7
8
9
10
Defined in | ||||
Term | Section | |||
Change of Control Offer
|
4.11 | |||
Change of Control Payment
|
4.11 | |||
Change of Control Payment Date
|
4.11 | |||
Covenant Defeasance
|
8.03 | |||
DTC
|
2.03 | |||
Event of Default
|
6.01 | |||
Global Note Legend
|
2.06 | |||
Legal Defeasance
|
8.02 | |||
Paying Agent
|
2.03 |
11
Defined in | ||||
Term | Section | |||
Registrar
|
2.03 | |||
Sale and Leaseback Transaction
|
4.07 | |||
Series A Notes
|
preamble |
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
L-3
COMMUNICATIONS CORPORATION
|
||||
By: | /s/ Steven M. Post | |||
Name: | Steven M. Post | |||
Title: |
Senior Vice President, General Counsel
and Corporate Secretary |
|||
S-1
|
By:
Name: |
/s/ Steven M. Post
|
||||
|
Title: | Senior Vice President, Secretary |
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By:
Name: |
/s/ Steven M. Post
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||||
|
Title: | Senior Vice President, Secretary |
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By:
Name: |
/s/ Steven M. Post
|
||||
|
Title: | Senior Vice President, General Counsel and Corporate Secretary |
S-2
|
By:
Name: |
/s/ Steven M. Post
|
||||
|
Title: | Senior Vice President, Secretary |
By:
|
/s/ Steven M. Post
|
|||
|
Title: Senior Vice President, Secretary |
THE BANK OF NEW YORK MELLON, | ||||
as Trustee | ||||
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||||
By:
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/s/ Franca M. Ferrera
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|||
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Name: Franca M. Ferrera | |||
|
Title: Senior Associate |
S-3
|
No. | $ |
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
By:
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||||
|
|
|||
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Title: |
A-1
1 | This paragraph should be included only if the Note is issued in global form. |
A-2
A-3
A-4
A-5
A-6
A-7
|
Your Signature: |
|
||||
(Sign exactly as your name appears on the face of this Note) |
A-8
Date:
|
Your Signature: | |||||||||||
|
||||||||||||
(Sign exactly as your name appears on the Note) | ||||||||||||
|
||||||||||||
Tax Identification No.: | ||||||||||||
|
|
A-9
Principal | ||||||||
Amount of | Amount of | Amount of this | Signature of | |||||
decrease in | increase in | Global Note | authorized | |||||
Principal | Principal | following such | officer of Trustee | |||||
Date of | Amount of this | Amount of this | decrease | or Note | ||||
Exchange | Global Note | Global Note | (or increase) | Custodian | ||||
A-10
B-1
B-2
|
|
By: | ||||
Name: | ||||
Title: | ||||
B-3
B-4
C-1
C-2
|
|
By: | ||||
Name: | ||||
Title: | ||||
C-3
(a) | o Book-Entry Interests, or | ||
(b) | o Definitive Notes, |
D-1
[Insert Name of Accredited Investor]
|
||||
By: | ||||
Name: | ||||
Title: | ||||
D-2
(a) | Such Guaranteeing Subsidiary, jointly and severally with all other current and future guarantors of the Notes (collectively, the Guarantors and each, a Guarantor), unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, regardless of the validity and enforceability of the Indenture, the Notes or the Obligations of the Company under the Indenture or the Notes, that: |
(i) | the principal of, premium, interest and Special Interest, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium, interest and Special Interest, if any, on the Notes, to the extent lawful, and all other Obligations of the Company to the Holders |
E-1
or the Trustee thereunder or under the Indenture will be promptly paid in full, all in accordance with the terms thereof; and | |||
(ii) | in case of any extension of time for payment or renewal of any Notes or any of such other Obligations, that the same will be promptly paid in full when due in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. |
(b) | Notwithstanding the foregoing, in the event that this Subsidiary Guarantee would constitute or result in a violation of any applicable fraudulent conveyance or similar law of any relevant jurisdiction, the liability of such Guaranteeing Subsidiary under this Supplemental Indenture and its Subsidiary Guarantee shall be reduced to the maximum amount permissible under such fraudulent conveyance or similar law. | ||
3. | Execution And Delivery Of Subsidiary Guarantees. | ||
(a) | The Subsidiary Guarantee set forth in this Supplemental Indenture of a Guaranteeing Subsidiary shall be evidenced by the execution and delivery of this Supplemental Indenture by an Officer of such Guaranteeing Subsidiary. | ||
(b) | If the Officer whose signature is on this Supplemental Indenture no longer holds that office at the time the Trustee authenticates any Note under the Indenture, the Subsidiary Guarantee shall be valid nevertheless. | ||
(d) | The delivery of any Note by the Trustee, after the authentication thereof under the Indenture, shall constitute due delivery of the Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of each Guaranteeing Subsidiary. | ||
(e) | Each Guaranteeing Subsidiary hereby agrees that its Obligations hereunder shall be unconditional, regardless of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor. | ||
(f) | Each Guaranteeing Subsidiary hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants that its Subsidiary Guarantee made pursuant to this Supplemental Indenture will not be discharged except by complete performance of the Obligations contained in the Notes and the Indenture. |
E-2
(g) | If any Holder or the Trustee is required by any court or otherwise to return to the Company or any Guaranteeing Subsidiary, or any custodian, Trustee, liquidator or other similar official acting in relation to either the Company or such Guaranteeing Subsidiary, any amount paid by either to the Trustee or such Holder, the Subsidiary Guarantee made pursuant to this Supplemental Indenture, to the extent theretofore discharged, shall be reinstated in full force and effect. | ||
(h) | Each Guaranteeing Subsidiary agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Obligations guaranteed hereby until payment in full of all Obligations guaranteed hereby. Each Guaranteeing Subsidiary further agrees that, as between such Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand: |
(i) | the maturity of the Obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of the Subsidiary Guarantee made pursuant to this Supplemental Indenture, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby; and | ||
(ii) | in the event of any declaration of acceleration of such Obligations as provided in Article 6 of the Indenture, such Obligations (whether or not due and payable) shall forthwith become due and payable by such Guaranteeing Subsidiary for the purpose of the Subsidiary Guarantee made pursuant to this Supplemental Indenture. |
(i) | Each Guaranteeing Subsidiary shall have the right to seek contribution from any other non-paying Guaranteeing Subsidiary so long as the exercise of such right does not impair the rights of the Holders or the Trustee under the Subsidiary Guarantee made pursuant to this Supplemental Indenture. | ||
4. | Guaranteeing Subsidiary May Consolidate, Etc. On Certain Terms. | ||
(a) | Except as set forth in Article 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into the Company or any other Guarantor or shall prevent any transfer, sale or conveyance of the property of any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to the Company or any other Guarantor. | ||
(b) | Except as set forth in Article 5 of the Indenture, nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of any Guaranteeing Subsidiary with or into an entity other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary), or successive consolidations or mergers in which a Guaranteeing Subsidiary or its successor or successors shall be a party or parties, or shall prevent any sale or conveyance of the property of |
E-3
any Guaranteeing Subsidiary as an entirety or substantially as an entirety, to an entity other than the Company or any other Guarantor (in each case, whether or not affiliated with the Guaranteeing Subsidiary) authorized to acquire and operate the same; provided, however, that each Guaranteeing Subsidiary hereby covenants and agrees that (i) subject to the Indenture, upon any such consolidation, merger, sale or conveyance, the due and punctual performance and observance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiaries, shall be expressly assumed (in the event that such Guaranteeing Subsidiary is not the surviving entity in the merger), by supplemental indenture satisfactory in form to the Trustee, executed and delivered to the Trustee, by the entity formed by such consolidation, or into which such Guaranteeing Subsidiary shall have been merged, or by the entity which shall have acquired such property and (ii) immediately after giving effect to such consolidation, merger, sale or conveyance no Default or Event of Default exists. | |||
(c) | In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor entity, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee made pursuant to this Supplemental Indenture and the due and punctual performance of all of the covenants and conditions of the Indenture and this Supplemental Indenture to be performed by such Guaranteeing Subsidiary, such successor entity shall succeed to and be substituted for such Guaranteeing Subsidiary with the same effect as if it had been named herein as the Guaranteeing Subsidiary. Such successor entity thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon the Notes issuable under the Indenture which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in all respects have the same legal rank and benefit under the Indenture and this Supplemental Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of the Indenture and this Supplemental Indenture as though all of such Subsidiary Guarantees had been issued at the date of the execution hereof. | ||
5. | Releases. | ||
(a) | Upon the release of a Guarantor from its Guarantees of, and all pledges and security interests granted in connection with, all other Indebtedness of the Company, such Guaranteeing Subsidiary shall be released and relieved of its Obligations under its Subsidiary Guarantee and this Supplemental Indenture. Any Guaranteeing Subsidiary not released from its Obligations under its Subsidiary Guarantee shall remain liable for the full amount of principal of and interest on the Notes and for the other Obligations of any Guaranteeing Subsidiary under the Indenture as provided herein. |
E-4
(b) | Each Guaranteeing Subsidiary shall be released and relieved of its obligations under this Supplemental Indenture in accordance with, and subject to, Sections 4.09 and 10.04 of the Indenture. |
E-5
L-3 COMMUNICATIONS CORPORATION
|
||||
By: | ||||
Name: | ||||
Title: | ||||
THE BANK OF NEW YORK MELLON,
as Trustee |
||||
By: | ||||
Name: | ||||
Title: | ||||
E-6
Year-to-Date Ended
|
||||
September 25, 2009 | ||||
($ in millions) | ||||
Earnings:
|
||||
Income before income taxes
|
$ | 1,020 | ||
Less: Net income attributable to noncontrolling interests
|
(7 | ) | ||
Income before income taxes after noncontrolling interests
|
$ | 1,013 | ||
Add:
|
||||
Interest expense
|
195 | |||
Amortization of debt expense
|
8 | |||
Interest component of rent expense
|
45 | |||
Earnings
|
$ | 1,261 | ||
Fixed charges:
|
||||
Interest expense
|
195 | |||
Amortization of debt expense
|
8 | |||
Interest component of rent expense
|
45 | |||
Fixed charges
|
$ | 248 | ||
Ratio of earnings to fixed charges
|
5.08 | |||
1. | I have reviewed this report on Form 10-Q for the quarter ended September 25, 2009 of L-3 Communications Holdings, Inc. and L-3 Communications Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q for the quarter ended September 25, 2009 of L-3 Communications Holdings, Inc. and L-3 Communications Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of L-3. |
/s/ Michael T.
Strianese
|
/s/ Ralph G. DAmbrosio
|
|
Michael T. Strianese
Chairman, President and Chief Executive Officer |
Ralph G. DAmbrosio
Vice President and Chief Financial Officer |