þ
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
For the fiscal year ended December 31, 2006 | ||
or
|
||
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware
|
13-3668640 | |
(State or other jurisdiction
of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: |
Common Stock, par value
$0.01 per share
New York Stock Exchange, Inc. |
|
Securities registered pursuant to Section 12(g) of the Act: | None |
2
58
65
67
76
81
82
3
Table of Contents
4
Table of Contents
5
Table of Contents
6
Table of Contents
7
Table of Contents
8
Table of Contents
9
Table of Contents
10
Table of Contents
11
Table of Contents
Function (1)
Owned/Leased
D
Leased
M, R, S, A
Owned
M
Owned
M, R, S, A
Leased
M, S, D, A
Leased
M, R, S, D, A
Leased
S, D, A
Owned
S, A
Leased
S, D, A
Leased
S, A
Leased
M, D, A
Owned
M, R, S, D, A
Leased
M, R, S, D, A
Leased
M, R, D, A
Leased
M, R, S, A
Leased
R, A
Leased
M, R, D, S, A
Leased
(1)
M = Manufacturing; R = Research; S = Sales and service; D =
Distribution; A = Administration
International
Australia
India
Switzerland
Austria
Ireland
Taiwan
Belgium
Italy
United Kingdom
Brazil
Japan
Canada
Korea
Czech Republic
Mexico
Denmark
Netherlands
Finland
Peoples Republic of China
France
Poland
Germany
Puerto Rico
Hong Kong
Spain
Hungary
Sweden
(2)
The Company operates more than one office within certain states
and foreign countries.
12
Table of Contents
13
Table of Contents
Item 5:
Market
for Registrants Common Equity, Related Stockholder Matters
and Issuer Purchases of Equity Securities
14
Table of Contents
DECEMBER 31, 2001 AMONG WATERS CORPORATION,
NYSE MARKET INDEX AND SIC CODE 3826 LABORATORY
ANALYTICAL INSTRUMENTS
2001
2002
2003
2005
2005
2006
100.00
56.21
85.57
120.75
97.55
126.37
100.00
51.13
74.59
91.53
94.40
107.64
100.00
81.69
105.82
119.50
129.37
151.57
Price Range
High
Low
$
51.57
$
35.51
$
40.85
$
33.99
$
46.43
$
37.42
$
43.79
$
35.11
$
44.88
$
37.06
$
46.98
$
40.40
$
45.41
$
38.38
$
51.64
$
44.43
15
Table of Contents
Total Number
of Shares
Maximum
Total
Purchased as Part
Dollar Value of
Number of
Average
of Publicly
Shares that May Yet
Shares
Price Paid
Announced
Be Purchased Under
Purchased (1)
per Share
Programs (2)
the Programs
$
$
56,144
56,144
430
49.85
430
34,709
430
49.85
430
34,709
(1)
The Company purchased an aggregate of 11.3 million shares
of its common stock in open market transactions pursuant to a
repurchase program (the Program) that was announced
on October 25, 2005.
(2)
The Companys Board of Directors approved the repurchase by
the Company of up to $500.0 million of its outstanding
common stock pursuant to the Program. The expiration date of the
Program is October 25, 2007.
Item 6:
Selected
Financial Data
Item 7:
Managements
Discussion and Analysis of Financial Condition and Results of
Operations
16
Table of Contents
The $12.0 million net increase in 2006 operating income
from 2005 is primarily a result of the increased sales volume
being partially offset by the $28.0 million of the
additional stock-based compensation costs incurred as a result
of the adoption of Statement of Financial Accounting Standard
(SFAS) No. 123(R) Share-Based
Payment and $8.5 million of restructuring costs
incurred relating to the February 2006 cost reduction
initiative. The Company does not expect to incur any significant
additional restructuring costs for this initiative in the future.
The $1.7 million net decrease in operating income in 2005
from 2004 is primarily attributable to a litigation provision of
$3.1 million related to a patent litigation settlement with
Hewlett-Packard Company in February 2006 that was recorded in
the fourth quarter of 2005. The remaining increase in 2005
operating income was primarily a result of sales growth. The
2004 operating income included the benefit of a litigation
judgment in the amount of $17.1 million from Perkin-Elmer
Corporation partially offset by litigation provisions of
$7.8 million and a technology license asset impairment of
$4.0 million.
17
Table of Contents
18
Table of Contents
Balance
Balance
December 31,
December 31,
2005
Charges
Utilization
2006
$
$
6,443
$
(5,010
)
$
1,433
2,041
(1,993
)
48
$
$
8,484
$
(7,003
)
$
1,481
19
Table of Contents
20
Table of Contents
21
Table of Contents
22
Table of Contents
Year Ended December 31
2006
2005
2004
$
222,200
$
201,975
$
224,053
46,159
43,685
41,926
28,813
765
75
506
10,235
1,468
4,872
32,012
(9,803
)
(6,515
)
(36,453
)
(29,853
)
(6,973
)
(11,575
)
1,670
26,802
12,203
(4,420
)
688
(16,095
)
1,230
7,551
1,526
7,092
14,982
10,309
263,594
298,067
259,449
(130,374
)
(51,045
)
(108,605
)
(125,906
)
(272,015
)
21,507
13,264
(20,496
)
9,945
$
20,578
$
(45,489
)
$
182,296
The change in accounts receivable in 2006 compared to 2005 is
primarily attributable to the timing of payments made by
customers and the higher sales volume in 2006 as compared to
2005. The days-sales-outstanding (DSO) decreased to
64 days at December 31, 2006 from 70 days at
December 31, 2005.
The change in inventory in 2006 compared to 2005 results from
the increase in inventory due to the
ramp-up
of
new MS products, an increase in LC instrument inventory
associated with the transition to higher production levels of
ACQUITY systems from Alliance systems and a planned increase in
the Alliance inventory levels during the outsourcing transition.
The 2006 change in accounts payable and other current
liabilities was impacted by cash payments made on increased
inventory levels, severance and other facility related payments
of $7.0 million in connection with the cost reduction
initiative and a litigation payment of $3.5 million to
settle the Hewlett-Packard litigation.
Also included in the change in accounts payable and other
current liabilities in 2006 was a tax payment in the amount of
$9.0 million related to the distribution and repatriation
of cash under the AJCA. During 2005, the income tax accrual was
increased by $24.0 million resulting from the repatriation
of funds under the AJCA.
Net cash provided from deferred revenue and customer advances in
both 2006 and 2005 was a result of the installed base of
customers renewing annual service contracts.
2006 net cash provided by operating activities as compared
to 2005 was impacted by the adoption of
SFAS No. 123(R). Under SFAS No. 123(R),
$16.5 million of benefits of tax deductions in excess of
recognized compensation costs were reported as cash from
financing activities in 2006; prior to the adoption
23
Table of Contents
of SFAS No. 123(R), this benefit of $4.9 million
in 2005 was reported as part of cash from operating activities.
Depreciation and amortization have increased as a result of
higher capital spending on equipment and facilities, and the
full-year impact of acquisitions, particularly in 2004.
Deferred income taxes decreased in 2005 primarily as a result of
the utilization of a portion of the net operating loss
carryforwards.
The change in accounts receivable is primarily related to the
timing of the Companys sales within the quarter, the
timing of cash receipts from customers and foreign currency
translation. DSO at December 31, 2005 and 2004 were
70 days and 76 days, respectively.
The growth in inventory over the two years is primarily related
to the Companys sales growth and the introduction of new
products. Although inventory levels have grown, they have not
increased at the same rate as sales growth, thus resulting in
improved inventory turns of 3.6 and 3.3 in 2005 and 2004,
respectively.
The changes in accounts payable and other current liabilities
are primarily related to the increase in income tax accruals
resulting from the repatriation of funds in 2005 and timing of
payments of income tax, compensation, and retirement accruals.
The 2005 change in accrued litigation is attributed to payment
of legal fees directly associated with existing litigation
accruals and a provision of $3.1 million relating to patent
litigation with Hewlett-Packard, which was settled in February
2006. The 2004 change in accrued litigation of
$16.1 million is primarily due to the $18.1 million
payment to Applied Biosystems/MDS Sciex Instruments for the
settlement of a patent litigation matter and a $7.8 million
provision offset by approximately $4.1 million of payments
in connection with the Hewlett-Packard patent litigation matter.
Net cash provided from deferred revenue and customer advances in
both 2005 and 2004 was a result of the installed base of
customers renewing annual service contracts.
24
Table of Contents
25
Table of Contents
Payments Due by Year
Total
2007
2008
2009
2010
2011
2012
After 2012
$
500,000
$
$
$
250,000
$
250,000
$
$
$
84,228
18,894
15,679
12,260
9,404
8,195
7,605
12,191
$
584,228
$
18,894
$
15,679
$
262,260
$
259,404
$
8,195
$
7,605
$
12,191
Amount of Commitments Expiration Per Period
Total
2006
2007
2008
2009
2010
2011
After 2011
$
1,608
$
1,608
$
$
$
$
$
$
(1)
The interest rates applicable to any U.S. borrowings under
the existing credit agreement and term loan and revolving loans
under the existing credit agreement are, at the Companys
option, equal to either the base rate (which is the higher of
the prime rate or the federal funds rate plus
1
/
2
%)
or, on any Euro borrowings, the applicable 1, 2, 3, 6,
9 or 12 month LIBOR rate, in each case, plus an interest
rate margin based upon the Companys leverage ratio, which
can range between 37.5 basis points and 112.5 basis
points. At current and long-term debt and interest rate levels
consistent with those at December 31, 2006, the
Companys interest expense would be approximately
$52.0 million annually. This amount considers the credit
margins under the 2007 Credit Agreement mentioned above.
(2)
Does not include normal purchases made in the ordinary course of
business.
26
Table of Contents
27
Table of Contents
significant underperformance relative to expected historical or
projected future operating results;
significant negative industry or economic trends; and
significant changes or developments in strategic technological
collaborations or legal matters which affect the Companys
capitalized patent, trademark and intellectual properties such
as licenses.
28
Table of Contents
29
Table of Contents
30
Table of Contents
Unrecognized
Compensation
Weighted-Average
Costs
Life in Years
$
61.1
3.1
$
11.8
2.8
$
0.3
1.1
$
73.2
3.0
31
Table of Contents
Item 7a:
Quantitative
and Qualitative Disclosures About Market Risk
32
Table of Contents
33
Table of Contents
34
Table of Contents
Item 8:
Financial
Statements and Supplementary Data
35
Table of Contents
36
Table of Contents
37
Table of Contents
38
Table of Contents
December 31,
2006
2005
2004
(In thousands, except per share data)
$
922,532
$
834,673
$
806,801
357,697
323,563
297,735
1,280,229
1,158,236
1,104,536
365,241
321,344
307,627
170,944
157,011
147,180
536,185
478,355
454,807
744,044
679,881
649,729
357,664
321,694
300,150
77,306
66,905
65,241
5,439
5,005
4,814
3,122
(9,277
)
3,997
8,484
(54
)
295,151
283,155
284,858
(5,847
)
(3,103
)
(1,014
)
(51,657
)
(24,744
)
(10,074
)
25,312
19,255
11,901
262,959
274,563
285,671
40,759
72,588
61,618
$
222,200
$
201,975
$
224,053
$
2.16
$
1.77
$
1.87
102,691
114,023
119,640
$
2.13
$
1.74
$
1.82
104,240
115,945
123,069
39
Table of Contents
Year Ended December 31,
2006
2005
2004
(In thousands)
$
222,200
$
201,975
$
224,053
4,254
3,726
1,332
5,903
7,093
7,349
5,847
4,820
5,011
28,813
765
75
506
10,235
1,468
25,896
23,669
22,075
20,263
20,016
19,851
4,872
32,012
(9,803
)
(6,515
)
(36,453
)
(29,853
)
(6,973
)
(11,575
)
(2,919
)
1,102
(7,344
)
(13,146
)
(2,534
)
3,716
1,670
26,802
12,203
1,230
7,551
1,526
(4,420
)
688
(16,095
)
7,153
775
245
263,594
298,067
259,449
(51,421
)
(51,045
)
(66,236
)
(78,953
)
(42,369
)
(130,374
)
(51,045
)
(108,605
)
406,844
915,512
885,053
(334,629
)
(545,889
)
(674,699
)
(443
)
(1,578
)
39,913
16,801
44,982
(249,203
)
(659,285
)
(231,287
)
16,503
(5,334
)
1,289
(964
)
(125,906
)
(272,015
)
21,507
13,264
(20,496
)
9,945
20,578
(45,489
)
182,296
493,588
539,077
356,781
$
514,166
$
493,588
$
539,077
$
38,049
$
27,743
$
28,574
$
51,853
$
23,995
$
9,676
40
Table of Contents
Accumulated
Number of
Additional
Other
Total
Statements of
Common
Common
Paid-In
Deferred
Retained
Treasury
Comprehensive
Stockholders
Comprehensive
Shares
Stock
Capital
Compensation
Earnings
Stock
Income (Loss)
Equity
Income
(In thousands)
136,708
$
1,367
$
289,046
$
$
678,529
$
(423,874
)
$
45,409
$
590,477
224,053
224,053
$
224,053
27,413
27,413
27,413
(9,341
)
(9,341
)
(9,341
)
427
427
427
(124
)
(124
)
(124
)
18,375
18,375
18,375
$
242,428
67
1
2,172
2,173
4,585
46
42,763
42,809
7
231
(157
)
74
32,012
32,012
(231,287
)
(231,287
)
141,367
$
1,414
$
366,224
$
(157
)
$
902,582
$
(655,161
)
$
63,784
$
678,686
201,975
201,975
$
201,975
(44,383
)
(44,383
)
(44,383
)
7,731
7,731
7,731
(1,021
)
(1,021
)
(1,021
)
(1,439
)
(1,439
)
(1,439
)
(39,112
)
(39,112
)
(39,112
)
$
162,863
76
1
2,671
2,672
824
8
14,121
14,129
7
320
(320
)
4,872
4,872
78,753
78,753
(659,285
)
(659,285
)
222
222
13
720
720
142,287
$
1,423
$
467,681
$
(255
)
$
1,104,557
$
(1,314,446
)
$
24,672
$
283,632
222,200
222,200
$
222,200
27,072
27,072
27,072
(10,575
)
(10,575
)
(10,575
)
4,210
4,210
4,210
20,707
20,707
20,707
$
242,907
(1,714
)
(1,714
)
70
1
2,636
2,637
1,727
17
37,259
37,276
16,503
16,503
(249,203
)
(249,203
)
(255
)
255
8
30,345
30,345
144,092
$
1,441
$
554,169
$
$
1,326,757
$
(1,563,649
)
$
43,665
$
362,383
41
Table of Contents
1
Description
of Business, Organization and Basis of Presentation
2
Summary
of Significant Accounting Policies
42
Table of Contents
Balance at
Balance at
Beginning of Period
Additions
Deductions
End of Period
$
6,550
$
4,254
$
(2,365
)
$
8,439
$
7,100
$
3,726
$
(4,276
)
$
6,550
$
5,638
$
1,332
$
130
$
7,100
43
Table of Contents
44
Table of Contents
45
Table of Contents
46
Table of Contents
47
Table of Contents
48
Table of Contents
Balance at
Accruals for
Settlements
Balance at
Beginning of Period
Warranties
Made
End of Period
$
11,719
$
17,940
$
(17,040
)
$
12,619
$
10,565
$
19,679
$
(18,525
)
$
11,719
$
11,051
$
19,915
$
(20,401
)
$
10,565
49
Table of Contents
50
Table of Contents
3
Inventories
December 31
2006
2005
$
51,568
$
45,257
17,400
12,908
99,469
73,389
$
168,437
$
131,554
4
Property,
Plant and Equipment
December 31
2006
2005
$
8,261
$
8,199
109,504
96,036
185,807
188,534
6,506
10,407
310,078
303,176
(160,816
)
(162,146
)
$
149,262
$
141,030
51
Table of Contents
5
Business
Investments
6
Acquisitions
52
Table of Contents
$
368
4,408
68
45,332
29,866
1,417
81,459
3,636
3,774
11,574
$
62,475
$
950
1,837
142
3,716
7,707
285
14,637
812
$
13,825
53
Table of Contents
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
2006
2005
2004
$
1,300,050
$
1,184,252
$
1,130,054
$
225,464
$
204,990
$
224,166
$
2.20
$
1.80
$
1.87
$
2.16
$
1.77
$
1.82
7
Goodwill
and Other Intangibles
54
Table of Contents
December 31, 2006
December 31, 2005
Weighted-
Weighted-
Average
Average
Gross Carrying
Accumulated
Amortization
Gross Carrying
Accumulated
Amortization
Amount
Amortization
Period
Amount
Amortization
Period
$
103,930
$
33,294
10 years
$
61,827
$
27,250
11 years
108,072
60,223
4 years
85,089
47,846
3 years
10,352
6,166
9 years
9,548
5,052
9 years
14,813
5,831
8 years
12,137
4,090
8 years
$
237,167
$
105,514
8 years
$
168,601
$
84,238
7 years
8
Debt
55
Table of Contents
56
Table of Contents
9
Income
Taxes
Year Ended December 31
2006
2005
2004
$
11,812
$
53,757
$
83,573
251,147
220,806
202,098
$
262,959
$
274,563
$
285,671
$
46,883
$
63,437
$
58,674
(6,124
)
9,151
2,944
$
40,759
$
72,588
$
61,618
$
6,121
$
39,852
$
28,262
2,603
4,488
4,061
32,035
28,248
29,295
$
40,759
$
72,588
$
61,618
$
92,036
$
96,097
$
99,985
(2,676
)
(3,384
)
(3,061
)
1,692
1,286
2,640
(49,568
)
(44,658
)
(37,875
)
24,000
(725
)
(753
)
(71
)
$
40,759
$
72,588
$
61,618
57
Table of Contents
December 31
2006
2005
$
115,325
$
125,632
2,411
1,570
3,436
12,644
8,807
20,731
9,553
11,240
9,356
1,902
2,761
11,383
2,444
5,161
6,907
7,807
182,142
176,928
(86,826
)
(87,997
)
95,316
88,931
(11,155
)
(7,290
)
(5,937
)
(1,625
)
(3,590
)
(15,652
)
(13,381
)
(80
)
(47
)
(32,824
)
(25,933
)
$
62,492
$
62,998
Table of Contents
59
Table of Contents
10
Patent
Litigation
60
Table of Contents
11
Restructuring
and Other Charges
Balance
Balance
December 31,
December 31,
2005
Charges
Utilization
2006
$
$
6,443
$
(5,010
)
$
1,433
2,041
(1,993
)
48
$
$
8,484
$
(7,003
)
$
1,481
61
Table of Contents
12
Other
Commitments and Contingencies
$
18,894
15,679
12,260
9,404
27,991
62
Table of Contents
2006
2005
2004
$
4,345
$
$
19,357
765
75
5,111
$
28,813
$
765
$
75
63
Table of Contents
2005
2004
$
201,975
$
224,053
(22,729
)
(39,496
)
556
59
$
179,802
$
184,616
$
1.77
$
1.87
$
1.58
$
1.54
$
1.74
$
1.82
$
1.55
$
1.50
2006
2005
2004
572
551
1,975
4.5
4.3
3.8
6.0
6.0
5.5
.280
.270
.552
64
Table of Contents
2006
2005
2004
$
48.64
$
39.51
$
46.79
$
18.08
$
14.22
$
25.10
Weighted
Remaining
Weighted
Exercise
Number of Shares
Average
Contractual Life of
Number of Shares
Average
Outstanding
Exercise Price
Options Outstanding
Exercisable
Exercise Price
827
$
16.61
1.6
827
$
16.61
1,755
$
22.17
4.8
1,472
$
22.28
3,399
$
34.75
6.5
2,188
$
34.80
2,433
$
47.59
8.3
751
$
47.13
1,093
$
72.21
3.9
1,093
$
72.21
9,507
$
38.44
5.9
6,331
$
37.43
Weighted Average
Number of Shares
Price per Share
Exercise Price
10,939
$8.55 to $80.97
$
35.47
572
$38.10 to $49.31
$
48.64
(1,727
)
$8.55 to $47.25
$
21.59
(277
)
$21.39 to $80.97
$
47.07
9,507
$9.39 to $80.97
$
38.44
Table of Contents
14
Earnings
Per Share
Year Ended December 31, 2006
Weighted-Average
Net Income
Shares
Per Share
(Numerator)
(Denominator)
Amount
$
222,200
102,691
$
2.16
1,217
332
$
222,200
104,240
$
2.13
66
Table of Contents
Year Ended December 31, 2005
Weighted-Average
Net Income
Shares
Per Share
(Numerator)
(Denominator)
Amount
$
201,975
114,023
$
1.77
1,831
91
$
201,975
115,945
$
1.74
Year Ended December 31, 2004
Weighted-Average
Net Income
Shares
Per Share
(Numerator)
(Denominator)
Amount
$
224,053
119,640
$
1.87
2,192
1,237
$
224,053
123,069
$
1.82
15
Comprehensive
Income
Year Ended December 31
2006
2005
2004
$
222,200
$
201,975
$
224,053
27,072
(44,383
)
27,413
(16,269
)
11,894
(14,371
)
(5,694
)
4,163
(5,030
)
(10,575
)
7,731
(9,341
)
16,497
(36,652
)
18,072
4,210
(1,021
)
427
(2,214
)
(191
)
(775
)
(67
)
(1,439
)
(124
)
20,707
(39,112
)
18,375
$
242,907
$
162,863
$
242,428
Table of Contents
16
Retirement
Plans
Minimum
Pension
After
Before
Liability
SFAS No.
Adoption of
Adoption of
Adjustment
158 Adoption
SFAS No.
SFAS No. 158
(MPLA)
Adjustments
158 & MPLA
$
2,268
$
$
(535
)
$
1,733
6,959
6,959
(130
)
(130
)
(33,360
)
4,210
(8,008
)
(37,158
)
$
(31,092
)
$
4,210
$
(1,714
)
$
(28,596
)
$
14,346
$
(4,210
)
$
1,714
$
11,850
68
Table of Contents
2006
2005
U.S.
U.S.
U.S.
Retirement
Non-U.S.
U.S.
Retirement
Non-U.S.
Pension
Healthcare
Pension
Pension
Healthcare
Pension
Plans
Plan
Plans
Plans
Plan
Plans
$
81,689
$
4,530
$
19,775
$
70,460
$
3,800
$
20,463
7,916
629
1,137
6,931
606
1,177
4,529
241
687
3,898
214
722
230
987
466
(1,404
)
(166
)
(1,073
)
2,319
(109
)
598
(2,304
)
(293
)
(800
)
(2,385
)
(211
)
(598
)
1,358
(2,587
)
$
91,413
$
4,941
$
21,084
$
81,689
$
4,530
$
19,775
2006
2005
U.S.
U.S.
U.S.
Retirement
Non-U.S.
U.S.
Retirement
Non-U.S.
Pension
Healthcare
Pension
Pension
Healthcare
Pension
Plans
Plan
Plans
Plans
Plan
Plans
$
60,803
$
1,277
$
8,878
$
51,716
$
975
$
8,740
6,017
223
543
4,670
49
837
3,877
190
1,217
6,336
132
920
356
332
(2,304
)
(293
)
(800
)
(2,385
)
(211
)
(598
)
987
466
912
(1,021
)
$
69,380
$
1,753
$
10,750
$
60,803
$
1,277
$
8,878
69
Table of Contents
2006
2005
U.S.
U.S.
U.S.
Retirement
Non-U.S.
U.S.
Retirement
Non-U.S.
Pension
Healthcare
Pension
Pension
Healthcare
Pension
Plans
Plan
Plans
Plans
Plan
Plans
$
(91,413
)
$
(4,941
)
$
(21,084
)
$
(81,689
)
$
(4,530
)
$
(19,775
)
69,380
1,753
10,750
60,803
1,277
8,878
$
(22,033
)
$
(3,188
)
$
(10,334
)
(20,886
)
(3,253
)
(10,897
)
(603
)
(482
)
22,076
407
2,682
$
587
$
(3,328
)
$
(8,215
)
70
Table of Contents
2006
2005
2004
U.S.
U.S.
U.S.
U.S.
Retirement
Non-U.S.
U.S.
Retirement
Non-U.S.
U.S.
Retirement
Non-U.S.
Pension
Healthcare
Pension
Pension
Healthcare
Pension
Pension
Healthcare
Pension
Plans
Plan
Plans
Plans
Plan
Plans
Plans
Plan
Plans
$
7,916
$
273
$
1,137
$
6,931
$
274
$
1,177
$
6,192
$
156
$
1,046
4,529
241
687
3,898
214
722
3,499
183
651
(4,695
)
(95
)
(328
)
(4,142
)
(75
)
(490
)
(3,389
)
(45
)
(432
)
(82
)
(54
)
(82
)
(54
)
(82
)
(78
)
1,234
13
933
53
879
5
13
$
8,902
$
365
$
1,509
$
7,538
$
359
$
1,462
$
7,099
$
221
$
1,278
2006
U.S.
U.S.
Retirement
Non-U.S.
Pension
Healthcare
Pension
Plans
Plan
Plans
$
(979
)
$
$
(19
)
87
(53
)
$
(892
)
$
(53
)
$
(19
)
71
Table of Contents
2005
2004
U.S.
U.S.
U.S.
Retirement
Non-U.S.
U.S.
Retirement
Non-U.S.
Pension
Healthcare
Pension
Pension
Healthcare
Pension
Plans
Plan
Plans
Plans
Plan
Plans
$
(11,536
)
$
(3,101
)
$
(8,883
)
$
(15,194
)
$
(3,013
)
$
(8,394
)
(7,538
)
(359
)
(1,462
)
(7,099
)
(221
)
(1,278
)
6,336
132
920
10,330
133
1,257
(1,021
)
427
1,210
(468
)
$
(13,759
)
$
(3,328
)
$
(8,215
)
$
(11,536
)
$
(3,101
)
$
(8,883
)
2006
2005
U.S.
U.S.
U.S.
Retirement
Non-U.S.
U.S.
Retirement
Non-U.S.
Pension
Healthcare
Pension
Pension
Healthcare
Pension
Plans
Plan
Plans
Plans
Plan
Plans
$
91,413
$
4,941
$
21,084
$
81,689
$
4,530
$
19,775
$
83,966
$
*
$
17,016
$
74,437
$
*
$
15,391
$
69,380
$
1,753
$
10,750
$
60,803
$
1,277
$
8,878
*
Not applicable.
2006
2005
U.S.
U.S.
U.S.
Retirement
Non-U.S.
U.S.
Retirement
Non-U.S.
Pension
Healthcare
Pension
Pension
Healthcare
Pension
Plans
Plan
Plans
Plans
Plan
Plans
70
%
50
%
0
%
65
%
50
%
0
%
27
%
50
%
2
%
29
%
50
%
2
%
1
%
0
%
0
%
2
%
0
%
0
%
2
%
0
%
98
%
4
%
0
%
98
%
100
%
100
%
100
%
100
%
100
%
100
%
72
Table of Contents
2006
2005
2004
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
5.82
%
2.25% - 5.00%
5.50
%
2.25% - 4.75%
5.75
%
2.25% - 5.25%
4.75
%
2.75% - 3.25%
4.75
%
2.75% - 3.25%
4.75
%
2.75% - 3.00%
2006
2005
2004
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
5.50%
2.25% - 4.75%
5.75%
2.25% - 5.25%
6.00%
2.00% - 5.50%
6.75% - 8.00%
2.50% - 4.00%
6.75% - 8.00%
2.50% - 7.50%
6.75% - 8.00%
2.50% - 7.50%
4.75%
2.75% - 3.25%
4.75%
2.75% - 3.00%
4.75%
2.50% - 3.00%
U.S.
Non-U.S.
Pension
Pension
Plans
Plans
Total
$
4,248
$
997
$
5,245
4,368
268
4,636
5,929
309
6,238
5,352
599
5,951
6,349
643
6,992
48,149
4,403
52,552
17
Business
Segment Information
73
Table of Contents
2006
2005
2004
$
658,457
$
601,366
$
590,145
180,519
153,157
141,234
83,556
80,150
75,422
922,532
834,673
806,801
320,895
293,453
271,524
36,802
30,110
26,211
357,697
323,563
297,735
$
1,280,229
$
1,158,236
$
1,104,536
2006
2005
2004
$
405,632
$
391,084
$
384,738
437,088
390,994
379,781
135,791
133,532
124,269
205,440
153,076
136,172
96,278
89,550
79,576
$
1,280,229
$
1,158,236
$
1,104,536
74
Table of Contents
2006
2005
$
109,860
$
107,639
34,175
29,278
436
526
3,401
2,196
1,390
1,391
$
149,262
$
141,030
18
Unaudited
Quarterly Results
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
Total
$
290,218
$
301,899
$
301,182
$
386,930
$
1,280,229
120,628
126,004
127,167
162,386
536,185
169,590
175,895
174,015
224,544
744,044
85,538
88,968
87,397
95,761
357,664
19,043
19,655
19,138
19,470
77,306
1,194
1,383
1,403
1,459
5,439
4,352
2,974
344
814
8,484
59,463
62,915
65,733
107,040
295,151
(5,847
)
(5,847
)
(11,428
)
(12,477
)
(13,565
)
(14,187
)
(51,657
)
5,292
6,205
6,877
6,938
25,312
53,327
56,643
59,045
93,944
262,959
9,172
8,863
8,669
14,055
40,759
$
44,155
$
47,780
$
50,376
$
79,889
$
222,200
$
0.42
$
0.46
$
0.49
$
0.79
$
2.16
104,585
103,010
101,845
101,431
102,691
$
0.42
$
0.46
$
0.49
$
0.78
$
2.13
105,901
104,337
103,074
103,019
104,240
75
Table of Contents
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
Total
$
268,305
$
284,630
$
273,031
$
332,270
$
1,158,236
111,801
117,066
115,508
133,980
478,355
156,504
167,564
157,523
198,290
679,881
80,595
82,861
76,645
81,593
321,694
16,747
16,485
16,982
16,691
66,905
1,282
1,266
1,241
1,216
5,005
3,122
3,122
57,880
66,952
62,655
95,668
283,155
(3,103
)
(3,103
)
(4,159
)
(5,753
)
(6,599
)
(8,233
)
(24,744
)
4,523
5,290
4,630
4,812
19,255
58,244
66,489
60,686
89,144
274,563
11,649
12,424
34,969
13,546
72,588
$
46,595
$
54,065
$
25,717
$
75,598
$
201,975
$
0.39
$
0.47
$
0.23
$
0.70
$
1.77
118,719
116,092
112,981
108,364
114,023
$
0.38
$
0.46
$
0.22
$
0.69
$
1.74
121,156
117,722
114,942
109,962
115,945
Table of Contents
In thousands, except per share and employees data
2006*
2005
2004
2003
2002
$
1,280,229
$
1,158,236
$
1,104,536
$
958,205
$
889,967
$
262,959
$
274,563
$
285,671
$
223,686
$
195,411
$
222,200
$
201,975
$
224,053
$
170,891
$
152,218
(4,506
)
(1)
$
222,200
$
201,975
$
224,053
$
170,891
$
147,712
$
2.16
$
1.77
$
1.87
$
1.39
$
1.17
(0.03
)
$
2.16
$
1.77
$
1.87
$
1.39
$
1.13
102,691
114,023
119,640
123,189
130,489
$
2.13
$
1.74
$
1.82
$
1.34
$
1.12
(0.03
)
$
2.13
$
1.74
$
1.82
$
1.34
$
1.09
104,240
115,945
123,069
127,579
135,762
$
514,166
$
493,588
$
539,077
$
356,781
$
263,312
$
313,846
$
309,101
$
480,894
$
339,835
$
338,233
$
1,617,313
$
1,428,931
$
1,460,426
$
1,130,861
$
1,015,240
$
500,000
$
500,000
$
250,000
$
225,000
$
$
362,383
$
283,632
$
678,686
$
590,477
$
665,310
4,687
4,503
4,271
3,963
3,677
*
As a result of the adoption of Statement of Financial Accounting
Standards (SFAS) No. 123(R), Share Based
Payment, as of January 1, 2006, all share-based
payments to employees have been recognized in the statements of
operations based on their fair values. The Company adopted the
modified prospective transition method permitted under
SFAS No. 123(R) and, consequently, has not adjusted results
from prior years. Stock-based compensation expense related to
SFAS 123(R) was approximately $28.8 million for the
year ended December 31, 2006.
**
As result of the adoption of SFAS No. 158 as of
December 31, 2006, the Company was required to recognize
the underfunded status of the Companys retirement plans as
a liability in the consolidated balance sheet. Prior to 2006, a
significant portion of the Companys retirement
contribution accrual was classified in other current liabilities
and included in working capital. In 2006, in accordance with
SFAS No. 158, the majority of the retirement
contribution accrual is included in the long-term retirement
liabiliy. Also, as result of the adoption
SFAS No. 158, stockholders equity decreased by
$1.7 million after-tax.
(1)
In the second quarter of 2002, the Company changed its method of
accounting for legal costs associated with litigating patents
effective January 1, 2002. As a result, the Company
recorded a cumulative effect of changes in accounting principles
of $4.5 million, net of tax.
77
Table of Contents
Item 9:
Changes
in and Disagreements with Accountants on Accounting and
Financial Disclosure
Item 9a:
Controls
and Procedures
(a)
Evaluation of Disclosure Controls and Procedures
(b)
Managements Annual Report on Internal Control Over
Financial Reporting
(c)
Report of the Independent Registered Public Accounting
Firm
(d)
Changes in Internal Controls Over Financial
Reporting
Item 9b:
Other
Information
Item 10:
Directors,
Executive Officers and Corporate Goverance
78
Table of Contents
Item 11:
Executive
Compensation
Item 12:
Security
Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
A
B
C
Number of Securities
Number of Securities
Remaining Available for
to be Issued Upon
Weighted-Average
Future Issuance Under
Exercise of
Exercise Price of
Equity Compensation
Outstanding Options,
Outstanding Options,
Plans (excluding securities
Warrants and Rights
Warrants and Rights
reflected in column (A))
9,507
$
38.44
5,418
9,507
$
38.44
5,418
Item 13:
Certain
Relationships and Related Transactions and Director
Independence
Item 14:
Principal
Accountant Fees and Services
79
Table of Contents
Item 15:
Exhibits and
Financial Statement Schedules
(1)
Financial Statements:
(2)
Financial Statement Schedule:
Exhibit
2
.1
Agreement for the Sale and
Purchase of Micromass Limited dated as of September 12,
1997, between Micromass Limited, Schroder UK Buy-Out
Fund III Trust I and Others, Waters Corporation and
Waters Technologies Corporation.(18)
3
.1
Second Amended and Restated
Certificate of Incorporation of Waters Corporation.(1)
3
.11
Certificate of Amendment of Second
Amended and Restated Certificate of Incorporation of Waters
Corporation, as amended May 12, 1999.(3)
3
.12
Certificate of Amendment of Second
Amended and Restated Certificate of Incorporation of Waters
Corporation, as amended July 27, 2000.(6)
3
.13
Certificate of Amendment of Second
Amended and Restated Certificate of Incorporation of Waters
Corporation, as amended May 25, 2001.(8)
3
.21
Amended and Restated Bylaws of
Waters Corporation dated as of December 13, 2006.
10
.3
Waters Corporation Second Amended
and Restated 1996 Long-Term Performance Incentive Plan.(5)(*)
10
.31
First Amendment to the Waters
Corporation Second Amended and Restated 1996 Long-Term
Performance Incentive Plan.(10)(*)
10
.4
Waters Corporation 1996 Employee
Stock Purchase Plan.(9)(*)
10
.41
December 1999 Amendment to
the Waters Corporation 1996 Employee Stock Purchase Plan.(4)(*)
10
.42
March 2000 Amendment to the
Waters Corporation 1996 Employee Stock Purchase Plan.(4)(*)
10
.43
June 1999 Amendment to the
Waters Corporation 1996 Employee Stock Purchase Plan.(7)(*)
10
.44
July 2000 Amendment to the Waters
Corporation 1996 Employee Stock Purchase Plan.(7)(*)
10
.5
Waters Corporation 1996
Non-Employee Director Deferred Compensation Plan.(13)(*)
10
.51
First Amendment to the Waters
Corporation 1996 Non-Employee Director Deferred Compensation
Plan.(5)(*)
10
.6
Waters Corporation Amended and
Restated 1996 Non-Employee Director Stock Option Plan.(5)(*)
10
.7
Agreement and Plan of Merger among
Waters Corporation, TA Merger Sub, Inc. and TA Instruments, Inc.
dated as of March 28, 1996.(19)
10
.8
Offer to Purchase and Consent
Solicitation Statement, dated March 7, 1996, of Waters
Technologies Corporation.(20)
10
.9
WCD Investors, Inc. Amended and
Restated 1994 Stock Option Plan (including Form of Amended and
Restated Stock Option Agreement).(2)(*)
10
.91
Amendment to the WCD Investors,
Inc. Amended and Restated 1994 Stock Option Plan.(5)(*)
10
.10
Waters Corporation Retirement
Plan.(2)(*)
80
Table of Contents
Exhibit
10
.11
Registration Rights Agreement made
as of August 18, 1994, by and among WCD Investors, Inc.,
AEA Investors, Inc., certain investment funds controlled by Bain
Capital, Inc. and other stockholders of Waters Corporation.(2)
10
.12
Form of Indemnification Agreement,
dated as of August 18, 1994, between WCD Investors, Inc.
and its directors and executive officers.(2)
10
.13
Form of Management Subscription
Agreement, dated as of August 18, 1994, between WCD
Investors, Inc. and certain members of management.(2)(*)
10
.17
First Amendment to the Waters
Corporation 2003 Equity Incentive Plan.(14)(*)
10
.19
Change of Control/Severance
Agreement, dated as of February 24, 2004 between Waters
Corporation and Mark T. Beaudouin.(15)(*)
10
.20
Change of Control/Severance
Agreement, dated as of February 24, 2004 between Waters
Corporation and Douglas A. Berthiaume.(15)(*)
10
.21
Change of Control/Severance
Agreement, dated as of February 24, 2004 between Waters
Corporation and Arthur G. Caputo.(15)(*)
10
.22
Change of Control/Severance
Agreement, dated as of February 24, 2004 between Waters
Corporation and William J. Curry.(15)(*)
10
.25
Change of Control/Severance
Agreement, dated as of February 24, 2004 between Waters
Corporation and John Ornell.(15)(*)
10
.26
Credit Agreement, dated as of
May 28, 2004 among Waters Corporation and Citizens Bank of
Massachusetts.(16)
10
.27
Form of Director Stock Option
Agreement under the Waters Corporation Amended 2003 Equity
Incentive Plan.(17)(*)
10
.28
Form of Director Restricted Stock
Agreement under the Waters Corporation Amended 2003 Equity
Incentive Plan.(17)(*)
10
.29
Form of Executive Officer Stock
Option Agreement under the Waters Corporation Amended 2003
Equity Incentive Plan.(17)(*)
10
.30
Five Year Credit Agreement, dated
as of December 15, 2004 among Waters Corporation, Waters
Technologies Ireland Ltd., Waters Chromatography Ireland Ltd.,
JP Morgan Chase Bank, N.A. and other Lenders party thereto.(21)
10
.32
Form of Amendment to Stock Option
Agreement under the Waters Corporation Second Amended and
Restated 1996 Long Term Performance Incentive Plan(21).(*)
10
.34
Waters Corporation 2003 Equity
Incentive Plan.(12)(*)
10
.35
Form of Executive Officer Stock
Option Agreement under the Waters Corporation Second Amended and
Restated 1996 Long-Term Performance Incentive Plan.(21)(*)
10
.36
2005 Waters Corporation Amended
and Restated Management Incentive Plan.(21)(*)
10
.37
Amendment to Rights Agreement,
dated as of March 4, 2005, between Waters Corporation and
The Bank of New York as Rights Agent.(22)
10
.38
Second Amendment to the Waters
Corporation 2003 Equity Incentive Plan.(23)(*)
10
.39
Five Year Credit Agreement, dated
as of November 28, 2005 among Waters Corporation, JP Morgan
Chase Bank, N.A. and other Lenders party thereto.(11)
10
.40
First Amendment dated as of
October 12, 2005, to the Five Year Credit Agreement, dated
as of December 15, 2004.(11)
10
.45
Change of Control/Severance
Agreement, dated as of February 24, 2004 between Waters
Corporation and Elizabeth B. Rae.(*)(11)
10
.46
Second Amendment to the Waters
Corporation Second Amended and Restated 1996 Long-Term
Performance Incentive Plan.(*)
10
.47
Five Year Credit Agreement, dated
January 11, 2007 among Waters Corporation, Waters
Technologies Ireland Limited. JP Morgan Chase Bank, N.A., JP
Morgan Europe and other Lenders party thereto.
Table of Contents
Exhibit
10
.48
Third Amendment to the Waters
Corporation 2003 Equity Incentive Plan.(*)
21
.1
Subsidiaries of Waters Corporation.
23
.1
Consent of PricewaterhouseCoopers
LLP, an independent registered public accounting firm.
31
.1
Chief Executive Officer
Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002.
31
.2
Chief Financial Officer
Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002.
32
.1
Chief Executive Officer
Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
32
.2
Chief Financial Officer
Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
(1)
Incorporated by reference to the Registrants Report on
Form 10-K
dated March 29, 1996.
(2)
Incorporated by reference to the Registrants Registration
Statement on
Form S-1
(File
No. 333-3810).
(3)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated August 11, 1999.
(4)
Incorporated by reference to the Registrants Report on
Form 10-K
dated March 30, 2000.
(5)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated May 8, 2000.
(6)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated August 8, 2000.
(7)
Incorporated by reference to the Registrants Report on
Form 10-K
dated March 27, 2001.
(8)
Incorporated by reference to the Registrants Report on
Form 10-K
dated March 28, 2002.
(9)
Incorporated by reference to Exhibit B of the
Registrants 1996 Proxy Statement.
(10)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated August 12, 2002.
(11)
Incorporated by reference to the Registrants Report on
Form 10-K
dated March 6, 2006.
(12)
Incorporated by reference to the Registrants Report on
Form S-8
dated November 20, 2003.
(13)
Incorporated by reference to Exhibit C of the
Registrants 1996 Proxy Statement.
(14)
Incorporated by reference to the Registrants Report on
Form 10-K
dated March 12, 2004.
(15)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated May 10, 2004.
(16)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated August 11, 2004.
(17)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated November 10, 2004.
(18)
Incorporated by reference to the Registrants Report on
Form 8-K,
filed on October 8, 1997 and amended on December 5,
1997.
(19)
Incorporated by reference to the Registrants Report on
Form 8-K
dated March 29, 1996.
(20)
Incorporated by reference to the Registrants Report on
Form 8-K
dated March 11, 1996.
(21)
Incorporated by reference to the Registrants Report on
Form 10-K
dated March 15, 2005.
(22)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated May 6, 2005.
(23)
Incorporated by reference to the Registrants Report on
Form 10-Q
dated August 5, 2005.
(*)
Management contract or compensatory plan required to be filed as
an Exhibit to this
Form 10-K.
(b)
See Item 15 (a) (3) above.
(c)
Not Applicable.
Table of Contents
Vice President, Finance and
Administration and Chief Financial Officer
Chairman of the Board of
Directors, President and Chief Executive Officer (principal
executive officer)
Vice President, Finance and
Administration and Chief Financial Officer
(principal financial officer and principal
accounting officer)
Director
Director
Director
Director
Director
Director
Director
Director
83
EXHIBIT 3.21
AMENDED AND RESTATED BYLAWS OF WATERS CORPORATION
Effective: December 13, 2006
ARTICLE I
STOCKHOLDERS
SECTION 1. ANNUAL MEETING. The annual meeting of the stockholders of the Corporation shall be held on such date, at such time and at such place within or without the State of Delaware as may be designated by the Board of Directors, for the purpose of electing Directors and for the transaction of such other business as may be properly brought before the meeting.
SECTION 2. SPECIAL MEETINGS. Except as otherwise provided in the Certificate of Incorporation, a special meeting of the stockholders of the Corporation may be called at any time by the Board of Directors, the Chairman of the Board or the President and shall be called by the Chairman of the Board, the President or the Secretary at the request in writing of stockholders holding together at least fifty percent (50%) of the number of shares of stock outstanding and entitled to vote at such meeting. Any special meeting of the stockholders shall be held on such date, at such time and at such place within or without the State of Delaware as the Board of Directors of the officer calling the meeting may designate. At a special meeting of the stockholders, no business shall be transacted and no corporate action shall be taken other than that stated in the notice of the meeting unless all of the stockholders are present in person or by proxy, in which case any and all business may be transacted at the meeting even though the meeting is held without notice.
SECTION 3. NOTICE OF MEETINGS. Except as otherwise provided in these Bylaws or by law, a written notice of each meeting of the stockholders shall be given not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockholder of the Corporation entitled to vote at such meeting at his address as it appears on the records of the Corporation. The notice shall state the place, date and hour of the meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is called.
SECTION 4. QUORUM. At any meeting of the stockholders, the holders of a majority in number of the total outstanding shares of stock of the Corporation entitled to vote at such meeting, present in person or represented by proxy, shall constitute a quorum of the stockholders for all purposes, unless the representation of a larger number of shares shall be required by law, by the Certificate of Incorporation or by these Bylaws, in which case the representation of the number of shares so required shall constitute a quorum; provided that at any meeting of the stockholders at which the holders of any class of stock of the Corporation shall be entitled to vote separately as a class, the holders of a majority in number of the total outstanding shares of such class, present in person or represented by proxy, shall constitute a quorum for
the purposes of such class vote unless the representation of a larger number of shares of such class shall be required by law, by the Certificate of Incorporation or by these Bylaws.
SECTION 5. ADJOURNED MEETINGS. Whether or not a quorum shall be present in person or represented at any meeting of the stockholders, the holders of a majority in number of the shares of stock of the Corporation present in person or represented by proxy and entitled to vote at such meeting may adjourn from time to time; provided, however, that if the holders of any class of stock of the Corporation are entitled to vote separately as a class upon any matter at such meeting, any adjournment of the meeting in respect of action by such class upon such matter shall be determined by the holders of a majority of the shares of such class present in person or represented by proxy and entitled to vote at such meeting. When a meeting is adjourned to another time or place, notice need not be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting the stockholders, or the holders of any class of stock entitled to vote separately as a class, as the case may be, may transact any business which might have been transacted by them at the original meeting. If the adjournment is for more than thirty (30) days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the adjourned meeting.
SECTION 6. ORGANIZATION. The Chairman of the Board or, in his absence, the President shall call all meetings of the stockholders to order, and shall act as Chairman of such meetings. In the absence of the Chairman of the Board and the President, the holders of a majority in number of the shares of stock of the Corporation present in person or represented by proxy and entitled to vote at such meeting shall elect a Chairman.
The Secretary of the Corporation shall act as Secretary of all meetings of the stockholders; but in the absence of the Secretary, the Chairman may appoint any person to act as Secretary of the meeting. It shall be the duty of the Secretary to prepare and make, at least ten (10) days before every meeting of stockholders, a complete list of stockholders entitled to vote at such meeting, arranged in alphabetical order and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting or, if not so specified, at the place where the meeting is to be held, for the ten (10) days next preceding the meeting, to the examination of any stockholder, for any purpose germane to the meeting, during ordinary business hours, and shall be produced and kept at the time and place of the meeting during the whole time thereof and subject to the inspection of any stockholder who may be present.
SECTION 7. VOTING. Except as otherwise provided in the Certificate of
Incorporation or by these Bylaws, each stockholder shall be entitled to one vote
for each share of the capital stock of the Corporation registered in the name of
such stockholder upon the books of the Corporation. Each stockholder entitled to
vote at a meeting of stockholders or to express consent or dissent to corporate
action in writing without a meeting may authorize another person or persons to
act for him by proxy, but no such proxy shall be voted or acted upon after three
(3) years from its date, unless the proxy provides for a longer period. When
directed y the presiding officer or upon the demand of any stockholder, the vote
upon any matter before a meeting of stockholders shall be by ballot. Except as
otherwise provided by law or by the Certificate of Incorporation, Directors
shall be elected by a plurality of the votes cast at a meeting of stockholders
by the stockholders entitled to vote in the election and, whenever any corporate
action, other than the election of Directors is to be taken, it shall be
authorized by a majority of the votes cast at a meeting of stockholders by the
stockholders entitled to vote thereon.
Shares of the capital stock of the Corporation belonging to the Corporation or to another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation is held, directly or indirectly, by the Corporation, shall neither be entitled to vote nor be counted for quorum purposes.
SECTION 8. INSPECTORS. When required by law or directed by the presiding officer or upon the demand of any stockholder entitled to vote, but not otherwise, the polls shall be opened and closed, the proxies and ballots shall be received and taken in charge, and all questions touching the qualification of voters, the validity of proxies and the acceptance or rejection of votes shall be decided at any meeting of the stockholders by two (2) or more Inspectors who may be appointed by the Board of Directors before the meeting, or if not so appointed, shall be appointed by the presiding officer at the meeting. If any person so appointed fails to appear or act, the vacancy may be filled by appointment in like manner.
SECTION 9. CONSENT OF STOCKHOLDERS IN LIEU OF MEETING. Unless otherwise provided in the Certificate of Incorporation, any action required to be taken or which may be taken at any annual or special meeting of the stockholders of the Corporation, may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of any such corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing.
SECTION 10. ADVANCE NOTICE PROVISIONS FOR ELECTION OF DIRECTORS. Only persons who are nominated in accordance with the following procedures shall be eligible for election as directors of the Corporation. Nominations of persons for election to the Board of Directors may be made at any annual meeting of stockholders, or at any special meeting of stockholders called for the purpose of electing directors, (a) by or at the direction of the Board of Directors (or any duly authorized committee thereof) or (b) by any stockholder of the Corporation (i) who is a stockholder of record on the date of the giving of the notice provided for in this Section 10 and on the record date for the determination of stockholders entitled to vote at such meeting and (ii) who complies with the notice procedures set forth in this Section 10.
In addition to any other applicable requirements, for a nomination to be made by a stockholder such stockholder must have given timely notice thereof in proper written form to the Secretary of the Corporation.
To be timely, a stockholder's notice to the Secretary must be delivered to or mailed and received at the principal executive offices of the Corporation (a) in the case of an annual meeting, not less than sixty (60) days nor more than ninety (90) days prior to the date of the annual meeting; provided, however, that in the event that less than seventy (70) days notice or prior public disclosure of the date of the annual meeting is given or made to stockholders, notice by the stockholder in order to be timely must be so received not later than the close of business on the tenth (10th) day following the day on which such notice of the date of the annual meeting was mailed or such public disclosure of the date of the annual meeting was made, whichever first occurs; and (b) in the case of a special meeting of stockholders called for the purpose of electing directors, not later than the close of business on the tenth (10th) day following the day on which notice of the date of the special meeting was mailed or public disclosure of the date of the special meeting was made, whichever first occurs.
To be in proper written form, a stockholder's notice to the Secretary must set forth (a) as to each person whom the stockholder proposed to nominate for election as a director (i) the name, age, business address and residence address of the person, (ii) the principal occupation or employment of the person, (iii) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by the person and (iv) any other information relating to the person that would be required to be disclosed in a proxy statement or other filings required to by made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules and regulations promulgated thereunder; and (b) as to the stockholder giving the notice (i) the name and record address of such stockholder, (ii) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such stockholder, (iii) a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names)
pursuant to which the nomination(s) are to be made by such stockholder, (iv) a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its notice and (v) any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder. Such notice must be accompanied by a written consent of each proposed nominee to being named as a nominee and to serve as a director if elected.
No person shall be eligible for election as a director of the Corporation unless nominated in accordance with the procedures set forth in the Section 10. If the Chairman of the meeting determines that a nomination was not made in accordance with the foregoing procedures, the Chairman shall declare to the meeting that the nomination was defective and such defective nomination shall be disregarded.
SECTION 11. ADVANCE NOTICE PROVISIONS FOR BUSINESS TO BE TRANSACTED AT ANNUAL MEETING. No business may be transacted at an annual meeting of stockholders, other than business that is either (a) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors (or any duly authorized committee thereof), (b) otherwise properly brought before the annual meeting by or at the direction of the Board of Directors (or any duly authorized committee thereof) or (c) otherwise properly brought before the annual meeting by any stockholder of the Corporation (i) who is a stockholder of record on the date of the giving of the notice provided for in this Section 11 and on the record date for the determination or stockholders entitled to vote at such annual meeting and (ii) who complies with the notice procedures set forth in this Section 11.
In addition to any other applicable requirements, for business to be properly brought before an annual meeting by a stockholder, such stockholder must have given timely notice therof in proper written form to the Secretary of the Corporation.
To be timely, a stockholder's notice to the Secretary must be delivered to
or mailed and received at the principal executive offices of the Corporation not
less than sixty (60) days nor more than ninety (90) days prior to the date of
the annual meeting; provided, however, that in the event that less than seventy
(70) days notice or prior public disclosure of the date of the annual meeting is
given or made to stockholders, notice by the stockholder in order to be timely
must be so received not later than the close of business on the tenth (10th) day
following the day on which such notice of the date of the annual meeting was
mailed or such public disclosure of the date of the annual meeting was made,
whichever first occurs.
To be in proper written form, a stockholder's notice to the Secretary must set forth as to each matter such stockholder proposes to bring before the annual meeting (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (ii) the name and record address of such stockholder, (iii) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such stockholder, (iv) a description of all arrangements or understandings between such stockholder and any other person or persons (including their names) in connection with the proposal of such business by such stockholder and any material interest of such stockholder in such business and (v) a representation that such stockholder intends to appear in person or by proxy at the annual meeting to bring such business before the meeting.
No business shall be conducted at the annual meeting of stockholders except business brought before the annual meeting in accordance with the procedures set forth in this Section 11, provided, however that, once business had been properly brought before the annual meeting in accordance with such procedures, nothing in this Section 11 shall be deemed to preclude discussion by any stockholder of any such business. If the Chairman of an annual meeting determines that business was not properly brought before the annual meeting in accordance with the foregoing procedures, the Chairman shall declare to the meeting that the business was not properly brought before the meeting and such business shall not be transacted.
SECTION 12. ORDER OF BUSINESS. The order of business at all meetings of the stockholders shall be as determined by the Chairman of the meeting.
ARTICLE II
BOARD OF DIRECTORS
SECTION 1.
(A) NUMBER AND TERM OF OFFICE. The business and affairs of the Corporation shall be managed by or under the direction of not less than five (5) nor more than eleven (11) Directors, the exact number of which shall be fixed from time to time by the affirmative vote of a majority of the Board of Directors, who need not be stockholders of the Corporation. The Directors shall, except as hereinafter otherwise provide for filling vacancies, be elected at the annual meeting of stockholders, and shall hold office until their respective successors are elected and qualified or until their earlier resignation or removal. The number of Directors may be altered from time to time by amendment of these Bylaws.
(B) PROCEDURE FOR STOCKHOLDER ELECTION OF DIRECTORS; REQUIRED VOTE. At any meeting of the stockholders for the election of directors at which a quorum is present, each director shall be elected by the affirmative vote of a majority of the votes cast with respect to the director, provided that if the number
of nominees exceeds the number of directors to be elected, directors shall be elected by the affirmative vote of a plurality of the votes cast. For purposes of this Section 1(b), votes cast shall include votes for, against or to withhold authority for a director. An abstention or broker non-vote shall not count as a vote cast with respect to a director. If an incumbent director fails to be reelected by a majority vote when such a vote is required and offers to resign, and if that resignation is not accepted by the Board of Directors, such director shall continue to serve until the next annual meeting and until his or her successor is duly elected, or his or her earlier resignation or removal. If a director's resignation is accepted by the Board of Directors or if a nominee for director is not elected and the nominee is not an incumbent director, then the Board of Directors, in its sole discretion, may fill any resulting vacancy pursuant to the provisions of Article II, Section 2 of these Bylaws or may decrease the size of the Board of Directors pursuant to the provisions of Article II, Section 1(a) of these Bylaws.
SECTION 2. REMOVAL, VACANCIES AND ADDITIONAL DIRECTORS. The stockholders may, at any special meeting the notice of which shall state that it is called for that purpose, remove, with or without cause, any Director and fill the vacancy; provided that whenever any Director shall have been elected by the holders of any class of stock of the Corporation voting separately as a class under the provisions of the Certificate of Incorporation, such Director may be removed and the vacancy filled only by the holders of that class of stock voting separately as a class. Vacancies caused by any such removal and not filled by the stockholders at the meeting at which such removal shall have been made, or any vacancy caused by the death or resignation of any Director or for any other reason, and any newly created directorship resulting from any increase in the authorized number of Directors, may be filled by the affirmative vote of a majority of the Directors then in office, although less than a quorum, and any Director so elected to fill any such vacancy or newly created directorship shall hold office until his successor is elected and qualified or until his earlier resignation or removal.
When one or more Directors shall resign effective at a future date, a majority of the Directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective, and each Director so chosen shall hold office as herein provided in connection with the filling of other vacancies.
SECTION 3. PLACE OF MEETING. The Board of Directors may hold its meetings in such place or places in the State of Delaware or outside the State of Delaware as the Board from time to time shall determine.
SECTION 4. REGULAR MEETINGS. Regular meetings of the Board of Directors shall be held at such times and places as the Board from time to time by resolution shall determine. No notice shall be required for any regular meeting of the Board of Directors; but a copy of every resolution fixing or
changing the time or place of regular meetings shall be mailed to every Director at least five (5) days before the first meeting held in pursuance thereof.
SECTION 5. SPECIAL MEETINGS. Special meetings of the Board of Directors shall be held whenever called by direction of the Chairman of the Board, the President or by any two of the Directors then in office.
Notice of the day, hour and place of holding of each special meeting shall be given by mailing the same at least two (2) days before the meeting or by causing the same to be delivered personally or transmitted by telegraph facsimile, telex or sent by certified, registered or overnight mail at least one day before the meeting to each Director. Unless otherwise indicated in the notice thereof, any and all business other than an amendment of these Bylaws may be transacted at any special meeting, and an amendment of these Bylaws may be acted upon if the notice of the meeting shall have stated that the amendment of these Bylaws is one of the purposes of the meeting. At any meeting at which every Director shall be present, even though without any notice, any business may be transacted, including the amendment of these Bylaws.
SECTION 6. QUORUM. Subject to the provisions of Section 2 of this Article II, a majority of the members of the Board of Directors in office (but in no case less than one-third of the total number of Directors nor less than two Directors) shall constitute a quorum for the transaction of business and the vote of the majority of the Directors present at any meeting of the Board of Directors at which a quorum is present shall be the act of the Board of Directors. If at any meeting of the Board there is less than a quorum present, a majority of those present may adjourn the meeting from time to time.
SECTION 7. ORGANIZATION. The Chairman of the Board or, in his absence, the President shall preside at all meetings of the Board of Directors. In the absence of the Chairman of the Board and the President, a Chairman shall be elected from the Directors present. The Secretary of the Corporation shall act as Secretary of all meetings of the Directors; but in the absence of the Secretary, the Chairman may appoint any person to act as Secretary of the meeting.
SECTION 8. COMMITTEES. The Board of Directors may, by resolution passed by a majority of the whole Board, designate one or more committees, each committee to consist of one or more of the Directors of the Corporation. The Board may designate one of more Directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not he or they constitute a quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in the place of any
such absent or disqualified member. Any such committee, to the extent provided by resolution passed by a majority of the whole Board, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and the affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers which may require it; but no such committee shall have the power or authority in reference to amending the Certificate of Incorporation, adopting an agreement of merger or consolidation, recommending to the stockholders the sale, lease or exchange of all or substantially all of the Corporation's property and assets, recommending to the stockholders a dissolution of the Corporation or the revocation of a dissolution, or amending these Bylaws; and unless such resolution, these Bylaws, or the Certificate of Incorporation expressly so provide, no such committee shall have the power or authority to declare a dividend or to authorize the issuance of stock.
SECTION 9. CONFERENCE TELEPHONE MEETINGS. Unless otherwise restricted by the Certificate of Incorporation or by these Bylaws, the members of the Board of Directors or any committee designated by the Board, may participate in a meeting of the Board or such committee, as the case may be, by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and such participation shall constitute presence in person at such meeting.
SECTION 10. CONSENT OF DIRECTORS OR COMMITTEE IN LIEU OF MEETING. Unless otherwise restricted by the Certificate of Incorporation or by these Bylaws, any action required or permitted to be taken at any meeting of the Board of Directors, or of any committee thereof, may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing and the writing or writings are filed with the minutes of proceedings of the Board or committee, as the case may be.
ARTICLE III
OFFICERS
SECTION 1. OFFICERS. The officers of the Corporation shall be a Chairman of the Board, a President, one or more Vice Presidents, a Secretary and a Treasurer, and such additional officers, if any, as shall be elected by the Board of Directors pursuant to the provisions of Section 7 of this Article III. The Chairman of the Board, the President, one or more Vice Presidents, the Secretary and the Treasurer shall be elected by the Board of Directors at its first meeting after each annual meeting of the stockholders. The failure to hold such election shall not of itself terminate the term of office of any officer. All officers shall hold office at the pleasure of the Board of Directors. Any officer may resign at any time upon written notice to the Corporation. Officers may, but need not, be Directors. Any number of offices may be held by the same person.
All officers, agents and employees shall be subject to removal, with or without cause, at any time by the Board of Directors. The removal of an officer without cause shall be without prejudice to his contract rights, if any. The election or appointment of an officer shall not of itself create contract rights. All agents and employees other than officers elected by the Board of Directors shall also be subject to removal, with or without cause, at any time by the officers appointing them.
Any vacancy caused by the death of any officer, his resignation, his removal, or otherwise, may be filled by the Board of Directors, and any officer so elected shall hold office at the pleasure of the Board of Directors.
In addition to the powers and duties of the officers of the Corporation as set for in these Bylaws, the officers shall have such authority and shall perform such duties as from time to time may be determined by the Board of Directors.
SECTION 2. POWERS AND DUTIES OF THE CHAIRMAN OF THE BOARD. The Chairman of the Board shall preside at all meetings of the stockholders and at all meetings of the Board of Directors and shall have such other powers and perform such other duties as may from time to time be assigned to him by these Bylaws or by the Board of Directors.
SECTION 3. POWERS AND DUTIES OF THE PRESIDENT. The President shall be the chief executive officer of the Corporation and, subject to the control of the Board of Directors, shall have general charge and control of all its operations and shall perform all duties incident to the office of President. In the absence of the Chairman of the Board, he shall preside at all meetings of the stockholders and at all meetings of the Board of Directors and shall have such other powers and perform such other duties as may from time to time be assigned to him by these Bylaws or by the Board of Directors.
SECTION 4. POWERS AND DUTIES OF THE VICE PRESIDENT. Each Vice President shall perform all duties incident to the office of Vice President and shall have such other powers and perform such other duties as may from time to time be assigned to him by these Bylaws or by the Board of Directors or the President.
SECTION 5. POWERS AND DUTIES OF THE SECRETARY. The Secretary shall keep the minutes of all meetings of the Board of Directors and the minutes of all meetings of the stockholders in books provided for that purpose; he shall attend to the giving or serving of all notices of the Corporation; he shall have custody of the corporate seal of the Corporation and shall affix the same to such documents and other papers as the Board of Directors or the President shall authorize and direct; he shall have charge of the
stock certificate books, transfer books and stock ledgers and such other books and papers as the Board of Directors or the President shall direct, all of which shall at all reasonable times be open to the examination of any Director, upon application, at the office of the Corporation during business hours; and he shall perform all duties incident to the office of Secretary and shall also have such other powers and shall perform such other duties as may from time to time be assigned to him by these Bylaws or by the Board of Directors or the President.
SECTION 6. POWERS AND DUTIES OF THE TREASURER. The Treasurer shall have custody of, and when proper shall pay out, disburse or otherwise dispose of, all funds and securities of the Corporation which may have come into his hands; he may endorse on behalf of the Corporation for collection checks, notes and other obligations and shall deposit the same to the credit of the Corporation in such bank or banks or depositary or depositories as the Board of Directors may designate; he shall sign all receipts and vouchers for payments made to the Corporation; he shall enter or cause to be entered regularly in the books of the Corporation kept for the purpose full and accurate accounts of all moneys received or paid or otherwise disposed of by him and whenever required by the Board of Directors or the President shall render statements of such accounts; he shall, at all reasonable times, exhibit his books and accounts to any Director of the Corporation upon application at the office of the Corporation during business hours; and he shall perform all duties incident to the office of Treasurer and shall also have such other powers and shall perform such other duties as may from time to time be assigned to him by these Bylaws or by the Board of Directors or the President.
SECTION 7. ADDITIONAL OFFICERS. The Board of Directors may from time to time elect such other officers (who may but need not be Directors), including a Controller, Assistant Treasurers, Assistant Secretaries and Assistant Controllers, as the Board may deem advisable and such officers shall have such authority and shall perform such duties as may from time to time be assigned to them by the Board of Directors or the President.
The Board of Directors may from time to time by resolution delegate to any Assistant Treasurer or Assistant Treasurers any of the powers or duties herein assigned to the Treasurer; and may similarly delegate to any Assistant Secretary or Assistant Secretaries any of the powers or duties herein assigned to the Secretary.
SECTION 8. GIVING OF BOND BY OFFICERS. All officers of the Corporation, if required to do so by the Board of Directors, shall furnish bonds to the Corporation for the faithful performance of their duties, in such penalties and with such conditions and security as the Board shall require.
SECTION 9. VOTING UPON STOCKS. Unless otherwise ordered by the Board of Directors, the Chairman of the Board, the President, or any Vice President shall have full power and authority on behalf of the Corporation to attend and to act and to vote, or in the name of the Corporation to execute proxies to vote, at any meetings of stockholders of any corporation in which the Corporation may hold stock, and at any such meetings shall possess and may exercise, in person or by proxy, any and all rights, powers and privileges incident to the ownership of such stock. The Board of Directors may from time to time, by resolution, confer like powers upon any other person or persons.
SECTION 10. COMPENSATION OF OFFICERS. The officers of the Corporation shall be entitled to receive such compensation for their services as shall from time to time be determined by the Board of Directors.
ARTICLE IV
STOCK - SEAL - FISCAL YEAR
SECTION 1. CERTIFICATES FOR SHARES OF STOCK. The certificates for shares of stock of the Corporation shall be in such form, not inconsistent with the Certificate of Incorporation, as shall be approved by the Board of Directors. All certificates shall be signed by the Chairman of the Board, the President or a Vice President and by the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer, and shall not be valid unless so signed.
In case any officer or officers who shall have signed any such certificate or certificates shall cease to be such officer or officers of the Corporation, whether because of death, resignation or otherwise, before such certificates shall have been delivered by the Corporation, such certificate or certificates may nevertheless be issued and delivered as though the person or persons who signed such certificate or certificates had not ceased to be such officer or officers of the Corporation.
All certificates for shares of stock shall be consecutively numbered as the same are issued. The name of the person owning the shares represented thereby with the number of such shares and the date of issue thereof shall be entered on the books of the Corporation.
Except as hereinafter provided, all certificates surrendered to the Corporation for transfer shall be canceled, and no new certificates shall be issued until former certificates for the same number of shares have been surrendered and canceled.
SECTION 2. LOST, STOLEN OR DESTROYED CERTIFICATES. Whenever a person owning a certificate for shares of stock of the Corporation alleges that it has been lost, stolen or destroyed, he shall file in the
office of the Corporation an affidavit setting forth, to the best of his knowledge and belief, the time, place and circumstances of the loss, theft or destruction, and, if required by the Board of Directors, a bond of indemnity or other indemnification sufficient in the opinion of the Board of Directors to indemnify the Corporation and its agents against any claim that may be made against it or them on account of the alleged loss, theft or destruction of any such certificate or the issuance of a new certificate in replacement thereof. Thereupon the Corporation may cause to be issued to such person a new certificate in replacement for the certificate alleged to have been lost, stolen or destroyed. Upon the stub of every new certificate so issued shall be noted the fact of such issue and the number, date and the name of the registered owner of the lost, stolen or destroyed certificate in lieu of which the new certificate is issued.
SECTION 3. TRANSFER OF SHARES. Shares of stock of the Corporation shall be transferred on the books of the Corporation by the holder thereof, in person or by his attorney duly authorized in writing, upon surrender and cancellation of certificates for the number of shares of stock to be transferred, except as provided in the preceding section; provided, however, that the Corporation shall be entitled to recognize and enforce any lawful restriction on transfer.
SECTION 4. REGULATIONS. The Board of Directors shall have power and authority to make such rules and regulations as it may deem expedient concerning the issue, transfer and registration of certificates for shares of stock of the Corporation.
SECTION 5. RECORD DATE. In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, as the case may be, the Board of Directors may fix, in advance, a record date, which shall not be more than sixty (60) nor less than ten (10) days before the date of such meeting, nor more than sixty (60) days prior to any other action.
If no record date is fixed, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held; the record date for determining stockholders entitled to express consent to corporate action in writing without a meeting, when no prior action by the Board of Directors is necessary, shall be the day on which the first written consent is expressed; and the record date for determining stockholders for any other purpose shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto. A determination of stockholders of record entitled to
notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.
SECTION 6. DIVIDENDS. Subject to the provisions of the Certificate of Incorporation, the Board of Directors shall have power to declare and pay dividends upon shares of stock of the Corporation, but only out of funds available for the payment of dividends as provided by law.
Subject to the provisions of the Certificate of Incorporation, any dividends declared upon the stock of the Corporation shall be payable on such date or dates as the Board of Directors shall determine. If the date fixed for the payment of any dividend shall in any year fall upon a legal holiday, then the dividend payable on such date shall be paid on the next day not a legal holiday.
SECTION 7. CORPORATE SEAL. The Board of Directors shall provide a suitable seal, containing the name of the Corporation, which seal shall be kept in the custody of the Secretary. A duplicate of the seal may be kept and be used by any officer of the Corporation designated by the Board of Directors, the Chairman of the Board or the President.
SECTION 8. FISCAL YEAR. The fiscal year of the Corporation shall be such fiscal year as the Board of Directors from time to time by resolution shall determine.
ARTICLE V
MISCELLANEOUS PROVISIONS
SECTION 1. CHECKS, NOTES, ETC. All checks, drafts, bills of exchange, acceptances, notes or other obligation or orders for the payment of money shall be signed and, if so required by the Board of Directors, countersigned by such officers of the Corporation and/or other persons as the Board of Directors from time to time shall designate.
Checks, drafts, bills of exchange, acceptances, notes, obligations and orders for the payment of money made payable to the Corporation may be endorsed for deposit to the credit of the Corporation with a duly authorized depositary by the Treasurer, or otherwise as the Board of Directors may from time to time, by resolution, determine.
SECTION 2. LOANS. No loans and no renewals of any loans shall be contracted on behalf of the Corporation except as authorized by the Board of Directors. When authorized so to do, any officer or agent of the Corporation may effect loans and advances for the Corporation from any bank, trust company or other institution or from any firm, corporation or individual, and for such loans and advances
may make, execute and deliver promissory notes, bonds or other evidences of indebtedness of the Corporation. When authorized so to do, any officer or agent of the Corporation may pledge, hypothecate or transfer, as security for the payment of any and all loans, advances, indebtedness and liabilities of the Corporation, any and all stocks, securities and other personal property at any time held by the Corporation, and to that end may endorse, assign and deliver the same. Such authority may be general or confined to specific instances.
SECTION 3. WAIVERS OF NOTICE. Whenever any notice whatever is required to be given by law, by the Certificate of Incorporation or by these Bylaws to any person or persons, a waiver thereof in writing, signed by the person or persons entitled to the notice, whether before or after the time stated therein, shall be deemed equivalent thereto.
SECTION 4. OFFICES OUTSIDE OF DELAWARE. Except as otherwise required by the laws of the State of Delaware, the Corporation may have an office or offices and keep its books, documents and papers outside of the State of Delaware at such place or places as from time to time may be determined by the Board of Directors, the Chairman of the Board or the President.
SECTION 5. INCONSISTENT PROVISIONS. In the event that any provision of these Bylaws is or becomes inconsistent with any provision of the Certificate of Incorporation, the General Corporation Law of the State of Delaware or any other applicable law, the provisions of these Bylaws shall not be given any effect to the extent of such inconsistency but shall otherwise be given full force and effect.
ARTICLE VI
AMENDMENTS
These Bylaws and any amendment thereof may be altered, amended or repealed, or new Bylaws may be adopted, by the Board of Directors at any regular or special meeting by the affirmative vote of a majority of all of the members of the Board, provided in the case of any special meeting at which all of the members of the Board are not present, that the notice of such meeting shall have stated that the amendment of these Bylaws was one of the purposes of the meeting; but these Bylaws and any amendment thereof, including the Bylaws adopted by the Board of Directors, may be altered, amended or repealed and other Bylaws may be adopted by the holders of a majority of the total outstanding stock of the Corporation entitled to vote at any annual meeting or at any special meeting, provided, in the case of any special meeting, that notice of such proposed alteration, amendment, repeal or adoption is included in the notice of the meeting.
ARTICLE VII
INDEMNIFICATION OF OFFICERS AND DIRECTORS
SECTION 1. GENERAL. To the fullest extent permitted by the Delaware General Corporation Law as the same exists or may hereafter be amended, a Director of the Corporation shall not be liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as Director.
ARTICLE VIII
OFFICES
SECTION 1. REGISTERED OFFICE. The registered office of the Corporation within the State of Delaware shall be in the City of Wilmington, County of New Castle.
SECTION 2. OTHER OFFICES. The Corporation may also have an office or offices other than said registered office at such place or places, either within or without the State of Delaware, as the Board of Directors shall from time to time determine or the business of the Corporation may require.
Adopted on December 6, 1991
Amended and Restated on August 16, 1994
Amended and Restated effective November 21, 1995
Amended and Restated effective December 13, 2006
EXHIBIT 10.46
SECOND AMENDMENT
TO THE
WATERS CORPORATION SECOND AMENDED AND RESTATED
1996 LONG-TERM PERFORMANCE INCENTIVE PLAN
WHEREAS, Waters Corporation (the "Corporation") has established and maintains an incentive plan for the benefit of certain key employees of the Corporation and its subsidiaries entitled the Waters Corporation Second Amended and Restated 1996 Long-Term Performance Incentive Plan (the "Plan"); and
WHEREAS, the Corporation desires to amend the Plan;
NOW THEREFORE, in accordance with the power of amendment contained in
Section 17 of the Plan, the Plan is hereby amended, effective as of December 13,
2006, as follows:
1. The first paragraph of Section 13 of the Plan ("Dilution and Other Adjustments") is hereby amended to read in its entirety as follows:
"In the event of any change in the outstanding Common Shares of the Company by reason of any stock split, dividend, split-up, split-off, spin-off, recapitalization, merger, consolidation, rights offering, reorganization, combination or exchange of shares, a sale by the Company of all of its assets, any distribution to stockholders other than a normal cash dividend, or other extraordinary or unusual event, in each such case occurring after June 10, 1999, an appropriate and proportionate adjustment will be made in (i) the maximum numbers and kinds of shares subject to the Plan, (ii) the numbers and kinds of shares or other securities subject to the then outstanding Awards, (iii) the exercise or hurdle price for each share or other unit of any other securities subject to then outstanding Options or Stock Appreciation Rights (without change in the aggregate purchase price as to which such Options or Stock Appreciation Rights remain exercisable), and (iv) the repurchase price of each share of Restricted Stock then subject to a Restricted Period by reason of a Company repurchase right. Any adjustment in Awards made pursuant to this Section 13 shall be determined and made by the Committee and shall include any correlative modification of terms, including of Option or Stock Appreciation Right exercise or hurdle prices, rates of vesting or exercisability, Restricted Periods and applicable repurchase prices for Restricted
Stock, which the Committee may deem necessary or appropriate so as to ensure the rights of the participants in their respective Awards are not substantially diminished or enlarged as a result of the adjustment and corporate action other than as expressly contemplated in this Section 13. No fraction of a share shall be purchasable or deliverable upon exercise, but in the event any adjustment hereunder of the number of shares covered by an Award shall cause such number to include a fraction of a share, such number of shares shall be adjusted to the nearest smaller whole number of shares. No adjustment of an Option exercise price or Stock Appreciation Right hurdle price per share pursuant to this Section 13 shall result in an exercise price or hurdle price which is less than the par value of the Common Shares."
IN WITNESS WHEREOF, the Board of Directors of the Corporation has caused this amendment to be signed on its behalf by its duly authorized representative this 13th day of December, 2006.
WATERS CORPORATION
By: /s/ Elizabeth B. Rae --------------------------------------- Its: Vice President, Corporate Human Resources |
EXHIBIT 10.47
CREDIT AGREEMENT
dated as of
January 11, 2007
among
WATERS CORPORATION
as US Borrower
WATERS TECHNOLOGIES IRELAND LIMITED
as European Borrower
The Lenders Party Hereto
JPMORGAN CHASE BANK, N.A.
as Administrative Agent
and
J.P. MORGAN EUROPE LIMITED
as London Agent
J.P. MORGAN SECURITIES INC. and ABN AMRO INCORPORATED
as Joint Lead Arrangers
and Joint Bookrunners
ABN AMRO INCORPORATED
as Syndication Agent
BANK OF AMERICA, N.A., BARCLAYS BANK PLC, CITIZENS BANK OF
MASSACHUSETTS, BANK OF TOKYO-MITSUBISHI UFJ TRUST COMPANY
and
THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND
as Co-Documentation Agents
[CSM #6701-450]
TABLE OF CONTENTS
Page ARTICLE I Definitions Section 1.01. Defined Terms..................................................................................... 1 Section 1.02. Classification of Loans and Borrowings............................................................ 19 Section 1.03. Terms Generally................................................................................... 19 Section 1.04. Accounting Terms; GAAP............................................................................ 20 Section 1.05. Exchange Rates.................................................................................... 20 ARTICLE II The Credits Section 2.01. Commitments....................................................................................... 21 Section 2.02. Loans and Borrowings.............................................................................. 21 Section 2.03. Notice of Borrowings.............................................................................. 22 Section 2.04. Swingline Loans................................................................................... 23 Section 2.05. Letters of Credit................................................................................. 25 Section 2.06. Funding of Borrowings............................................................................. 29 Section 2.07. Repayment of Borrowings; Evidence of Debt......................................................... 30 Section 2.08. Interest Elections................................................................................ 31 Section 2.09. Termination and Reduction of Commitments.......................................................... 32 Section 2.10. Increase in Commitments........................................................................... 33 Section 2.11. Prepayment of Loans............................................................................... 35 Section 2.12. Fees.............................................................................................. 36 Section 2.13. Interest.......................................................................................... 37 Section 2.14. Alternate Rate of Interest........................................................................ 38 Section 2.15. Increased Costs................................................................................... 38 Section 2.16. Break Funding Payments............................................................................ 39 Section 2.17. Taxes............................................................................................. 40 Section 2.18. Payments Generally; Pro Rata Treatment; Sharing of Setoffs........................................ 41 Section 2.19. Mitigation Obligations; Replacement of Lenders.................................................... 43 ARTICLE III Representations and Warranties Section 3.01. Corporate Existence and Standing.................................................................. 44 |
Section 3.02. Authorization; No Violation....................................................................... 44 Section 3.03. Governmental Consents............................................................................. 44 Section 3.04. Validity.......................................................................................... 44 Section 3.05. Use of Proceeds................................................................................... 44 Section 3.06. Litigation........................................................................................ 44 Section 3.07. Financial Statements; No Material Adverse Change.................................................. 45 Section 3.08. Investment Company Act............................................................................ 45 Section 3.09. Taxes............................................................................................. 45 Section 3.10. ERISA............................................................................................. 45 Section 3.11. Regulation U...................................................................................... 46 Section 3.12. Environmental Matters............................................................................. 46 Section 3.13. Disclosure........................................................................................ 46 Section 3.14. Subsidiary Guarantors............................................................................. 46 ARTICLE IV Conditions Section 4.01. Effective Date.................................................................................... 46 Section 4.02. Each Credit Event................................................................................. 47 ARTICLE V Affirmative Covenants Section 5.01. Payment of Taxes, Etc............................................................................. 48 Section 5.02. Preservation of Existence, Etc.................................................................... 48 Section 5.03. Compliance with Laws, Etc......................................................................... 48 Section 5.04. Keeping of Books.................................................................................. 49 Section 5.05. Inspection........................................................................................ 49 Section 5.06. Reporting Requirements............................................................................ 49 Section 5.07. Use of Proceeds and Letters of Credit............................................................. 51 Section 5.08. Guarantee Requirement............................................................................. 51 ARTICLE VI Negative Covenants Section 6.01. Subsidiary Debt................................................................................... 51 Section 6.02. Liens Securing Debt............................................................................... 52 Section 6.03. Sale and Leaseback Transactions................................................................... 52 Section 6.04. Merger, Consolidation, Etc........................................................................ 52 Section 6.05. Change in Business................................................................................ 53 Section 6.06. Certain Restrictive Agreements.................................................................... 53 Section 6.07. Leverage Ratio.................................................................................... 54 |
Section 6.08. Interest Coverage Ratio.......................................................................... 54 ARTICLE VII Events of Default ARTICLE VIII The Agents ARTICLE IX Collection Allocation Mechanism Section 9.01. CAM Exchange..................................................................................... 58 ARTICLE X Guarantee ARTICLE XI Miscellaneous Section 11.01. Notices.......................................................................................... 61 Section 11.02. Waivers; Amendments.............................................................................. 62 Section 11.03. Expenses; Indemnity; Damage Waiver............................................................... 63 Section 11.04. Successors and Assigns........................................................................... 64 Section 11.05. Survival......................................................................................... 67 Section 11.06. Counterparts; Integration; Effectiveness......................................................... 67 Section 11.07. Severability..................................................................................... 68 Section 11.08. Right of Setoff.................................................................................. 68 Section 11.09. Governing Law; Jurisdiction; Consent to Service of Process....................................... 68 Section 11.10. WAIVER OF JURY TRIAL............................................................................. 69 Section 11.11. Headings......................................................................................... 69 Section 11.12. Confidentiality.................................................................................. 69 Section 11.13. Conversion of Currencies......................................................................... 70 Section 11.14. Release of Subsidiary Guarantors................................................................. 70 Section 11.15. USA Patriot Act.................................................................................. 70 |
SCHEDULES:
Schedule 1.01 -- Subsidiary Guarantors Schedule 2.01 -- Lenders and Commitments Schedule 2.05 -- Existing Letters of Credit Schedule 2.18 -- Payment Instructions Schedule 6.01 -- Debt of Subsidiaries EXHIBITS: Exhibit A -- Form of Assignment and Acceptance Exhibit B -- Form of Subsidiary Guarantee Agreement Exhibit C -- Form of Irish Certificate Exhibit D-1 -- Form of Opinion of Counsel for the Company Exhibit D-2 -- Form of Opinion of Irish Counsel for the European Borrower Exhibit D-3 -- Form of Opinion of General Counsel of the Company Exhibit E -- Form of Promissory Note |
CREDIT AGREEMENT dated as of January 11, 2007, among |
WATERS CORPORATION, a Delaware corporation (the "Company"); WATERS TECHNOLOGIES IRELAND LIMITED, a company organized under the laws of Ireland (the "European Borrower" and, together with the Company, the "Borrowers"); the LENDERS from time to time party hereto; JPMORGAN CHASE BANK, N.A., as Administrative Agent; and J.P.MORGAN EUROPE LIMITED, as London Agent.
The Company has requested the Lenders (such term and each other
capitalized term used and not otherwise defined herein having the meaning
assigned to it in Article I) to extend credit in the form of (a) Term Loans to
the Company in US Dollars in an aggregate principal amount of $500,000,000 and
(b) revolving commitments consisting of the following: (i) US Tranche
Commitments under which the Company may obtain Loans in US Dollars in an
aggregate principal amount at any time outstanding that will not result in
aggregate US Tranche Revolving Exposures exceeding $350,000,000 and (ii)
European Tranche Commitments under which the European Borrower may obtain Loans
in US Dollars or Euros and the Company may obtain Loans in US Dollars in an
aggregate principal amount at any time outstanding that will not result in
aggregate European Tranche Revolving Exposures exceeding $250,000,000. The
proceeds of borrowings are to be used for general corporate purposes of the
Company and its subsidiaries, including repayment of amounts outstanding under
the Existing Credit Agreements, payment of indebtedness, financing of
acquisitions, payment of fees and expenses in connection with the credit
facilities established hereby, repurchases of equity securities of the Company
and working capital.
The Lenders are willing to establish the credit facilities referred to in the preceding paragraph upon the terms and subject to the conditions set forth herein. Accordingly, the parties hereto agree as follows:
ARTICLE I
Definitions
Section 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below:
"ABR", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.
"Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.
"Administrative Agent" means JPMCB, in its capacity as administrative agent for the Lenders hereunder.
"Administrative Questionnaire" means an Administrative Questionnaire in a form supplied by the Administrative Agent.
"Affiliate" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
"Agents" means, collectively, the Administrative Agent and the London Agent.
"Agreement Currency" has the meaning assigned to such term in Section 11.13(b).
"Alternate Base Rate" means, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.
"Applicable Agent" means (a) with respect to a Loan or Borrowing denominated in US Dollars, or any Letter of Credit, and with respect to any payment hereunder that does not relate to a particular Loan or Borrowing, the Administrative Agent and (b) with respect to a Loan or Borrowing denominated in Euros, the London Agent.
"Applicable Rate" means, with respect to any Loan of any Type or the facility fees payable hereunder, as the case may be:
(a) For any day on which either or both of Moody's and S&P shall not have a Rating in effect, the applicable rate per annum set forth under the appropriate caption in the table below, based upon the Leverage Ratio as of the most recent determination date:
FACILITY FEE (BASIS LIBOR SPREAD ABR SPREAD LEVERAGE POINTS PER (BASIS POINTS PER (BASIS POINTS CATEGORY RATIO ANNUM) ANNUM) PER ANNUM) ------------- ---------------------- ---------- ----------------- ------------- Category 1 < 1.50 7.0 33.00 0.0 Category 2 > or = 1.50 and < 2.00 8.0 42.00 0.0 Category 3 > or = 2.00 and < 2.50 10.0 52.50 0.0 Category 4 > or = 2.50 and < 3.00 12.5 62.50 0.0 Category 5 > or = 3.00 15.0 72.50 0.0 |
The Leverage Ratio used on any date to determine the Applicable Rate shall be
that in effect at the end of the most recent fiscal quarter for which financial
statements shall have been delivered pursuant to Section 5.06(a) or (b);
provided that if any financial statements required to have been delivered under
Section 5.06(a) or (b) shall not at any time have been delivered, the Applicable
Rate shall, until such financial statements shall have been delivered, be
determined by reference to Category 5 in the Table above.
(b) For any day on which each of Moody's and S&P shall have a Rating in effect, the applicable rate per annum set forth under the appropriate caption in the table below, based upon the Ratings as of the most recent determination date:
FACILITY FEE (BASIS LIBOR SPREAD ABR SPREAD POINTS PER (BASIS POINTS PER (BASIS POINTS CATEGORY RATING ANNUM) ANNUM) PER ANNUM) ------------- ----------------- ---------- ----------------- ------------- Category 1 A3/A- or higher 7.0 33.00 0.0 Category 2 Baa1/BBB+ 8.0 42.00 0.0 Category 3 Baa2/BBB 10.0 52.50 0.0 Category 4 Baa3/BBB- 12.5 62.50 0.0 Category 5 Ba1/BB+ or lower 20.0 80.0 0.0 |
In the event of split Ratings, the Applicable Rate will be based on the higher Rating unless the Ratings differ by two or more categories, in which case the Applicable Rate will be based upon the category one level above the category corresponding to the lower Rating.
"Assignment and Acceptance" means an assignment and acceptance entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 11.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent.
"Attributable Debt" means, in connection with any Sale and Leaseback Transaction, the present value (discounted in accordance with GAAP at the discount rate implied in the lease) of the obligations of the lessee for rental payments during the term of the lease.
"Board" means the Board of Governors of the Federal Reserve System of the United States of America.
"Borrower" means the Company or the European Borrower.
"Borrowing" means (a) Loans of the same Class, Type and currency, made, converted or continued on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is in effect and (b) a Swingline Loan.
"Borrowing Minimum" means (a) in the case of a Borrowing denominated in US Dollars, $5,000,000 and (b) in the case of a Borrowing denominated in Euros, (euro)5,000,000.
"Borrowing Multiple" means (a) in the case of a Borrowing denominated in US Dollars, $1,000,000 and (b) in the case of a Borrowing denominated in Euros, (euro)1,000,000.
"Borrowing Request" means a request by a Borrower for a Borrowing in accordance with Section 2.03.
"Business Day" means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed; provided, that (a) when used in connection with a Eurocurrency Loan, the term "Business Day" shall also exclude any day on which banks are not open for dealings in deposits in the London interbank market, (b) when used in connection with a Letter of Credit denominated in a Designated Foreign Currency, the term "Business Day" shall also exclude any day on which banks are not open for dealings in deposits in the applicable Designated Foreign Currency in the principal financial center in the country of such Designated Foreign Currency and (c) when used in connection with a Loan denominated in Euros, the term "Business Day" shall also exclude any day on which the TARGET payment system is not open for the settlement of payments in Euros.
"Calculation Date" means the last Business Day of each calendar month.
"CAM" shall mean the mechanism for the allocation and exchange of interests in the Specified Obligations and collections thereunder established under Article IX.
"CAM Exchange" shall mean the exchange of the Lender's interests provided for in Article IX.
"CAM Exchange Date" shall mean the date on which any event referred to in paragraph (g) of Article VII shall occur in respect of the Company.
"CAM Percentage" shall mean, as to each Lender, a fraction, expressed as a decimal, of which (a) the numerator shall be the aggregate US Dollar Equivalent (determined on the basis of Exchange Rates prevailing on the CAM Exchange Date) of the Specified Obligations owed to such Lender immediately prior to the CAM Exchange
Date and (b) the denominator shall be the aggregate US Dollar Equivalent (as so determined) of the Specified Obligations owed to all the Lenders.
"Cash Management Arrangements" means treasury, depository and cash management services or any automated clearing house transfer of funds.
"Cash Management Obligations" means the due and punctual payment and
performance of all obligations of any Loan Party in respect of any overdraft or
other liability that (a) arises under Cash Management Arrangements in effect on
the Effective Date with a counterparty that is (i) a Lender as of the Effective
Date or (ii) an Affiliate of such Lender or (b) arises under Cash Management
Arrangements entered into after the Effective Date with a counterparty that is
(i) a Lender as of the date on which such Cash Management Arrangements are
entered into or (ii) an Affiliate of such Lender.
"Change of Control" means (a) the acquisition of ownership, directly
or indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934, as amended, and the rules of the
Securities and Exchange Commission thereunder as in effect on the date hereof)
of shares representing more than 30% of the aggregate ordinary voting power
represented by the issued and outstanding capital stock of the Company; or (b)
occupation of a majority of the seats (other than vacant seats) on the board of
directors of the Company by Persons who were not (i) directors of the Company on
the date hereof, (ii) nominated by the board of directors of the Company or
(iii) appointed by directors so nominated.
"Change in Law" means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or the Issuing Bank or by any lending office of such Lender or by such Lender's or Issuing Bank's holding company with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement.
"Class", when used in reference to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Term Loans, US Tranche Revolving Loans or European Tranche Revolving Loans and (b) any Commitment, refers to whether such Commitment is a Term Commitment, a US Tranche Commitment or a European Tranche Commitment.
"Code" means the Internal Revenue Code of 1986, as amended from time to time.
"Commitment" means a Term Commitment, a US Tranche Commitment or a European Tranche Commitment.
"Company" has the meaning assigned to such term in the heading of this Agreement.
"Confidential Information Memorandum" means the Confidential Information Memorandum dated December 2006 distributed to the Lenders, together with the appendices thereto, as amended through the date hereof.
"Consolidated Debt" means all Debt of the Company and the Subsidiaries, determined on a consolidated basis.
"Consolidated EBITDA" means, for any period, the consolidated net income (loss) of the Company and the Subsidiaries for such period plus, to the extent deducted in computing such consolidated net income for such period, the sum (without duplication) of (a) Consolidated Interest Expense, (b) consolidated income tax expense, (c) depreciation and amortization expense, (d) stock-based employee compensation expense related to any grant of stock options or restricted stock to the extent deducted from such consolidated net income for such period pursuant to Statement of Financial Accounting Standards 123 (revised 2004) and (e) extraordinary or non-recurring non-cash expenses or losses, minus, to the extent added in computing such consolidated net income for such period, extraordinary gains, all determined on a consolidated basis.
"Consolidated Interest Expense" means, for any period, the interest expense of the Company and the consolidated Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, but excluding deferred financing fees.
"Consolidated Net Tangible Assets" means the total amount of assets that would be included on a consolidated balance sheet of the Company and the consolidated Subsidiaries (and which shall reflect the deduction of applicable reserves) after deducting therefrom all current liabilities of the Company and the consolidated Subsidiaries and all Intangible Assets.
"Consolidated Total Assets" means the total amount of assets that would be included on a consolidated balance sheet of the Company and the consolidated Subsidiaries.
"Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.
"Debt" means, with respect to any Person and without duplication, all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services, all accrued or contingent obligations in respect of letters of credit, all capitalized lease obligations, all indebtedness of others secured by assets of the Company or a Subsidiary, all guarantees of Debt of others (but excluding guarantees issued for customer advance payments) and all obligations under Hedging Agreements. For the avoidance of doubt, "Debt" shall not include pension liabilities under any employee pension benefit plan.
"Default" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.
"Designated Foreign Currency" means Euros, British Pounds Sterling, Japanese Yen or any other currency (other than US Dollars) approved in writing by the Issuing Bank and the Administrative Agent.
"Domestic Subsidiary" means any Subsidiary that is incorporated under the laws of the United States or its territories or possessions.
"Effective Date" means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with Section 11.02).
"EMU Legislation" means the legislative measures of the European Union for the introduction of, changeover to or operation of the Euro in one or more member states.
"Environmental Laws" means all federal, state, local and foreign laws, rules and regulations relating to the release, emission, disposal, storage and related handling of waste materials, pollutants and hazardous substances.
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time.
"ERISA Event" means (a) any "reportable event", as defined in Section
4043 of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Company or any member of an ERISA Group of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Company or any member of the ERISA Group from the PBGC or
a plan administrator of any notice relating to an intention to terminate any
Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence
by the Company or any member of the ERISA Group of any liability with respect to
the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g)
the receipt by the Company or any member of the ERISA Group of any notice, or
the receipt by any Multiemployer Plan from the Company or any member of the
ERISA Group of any notice, concerning the imposition of Withdrawal Liability or
a determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA.
"ERISA Group" means all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Company, are treated as a single employer under Section 414 of the Code.
"Euro" or "(euro)" means the single currency of the European Union as constituted by the Treaty on European Union and as referred to in the EMU Legislation.
"Eurocurrency", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.
"European Borrower" means Waters Technologies Ireland Limited a company organized under the laws of Ireland.
"European Tranche Commitment" means, with respect to each European
Tranche Lender, the commitment of such European Tranche Lender to make European
Tranche Revolving Loans pursuant to Section 2.01(c), expressed as an amount
representing the maximum aggregate amount of such European Tranche Lender's
European Tranche Revolving Exposure hereunder, as such commitment may be (a)
reduced from time to time pursuant to Section 2.09, (b) increased pursuant to
Section 2.10 and (c) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 11.04. The initial amount
of each European Tranche Lender's European Tranche Commitment is set forth on
Schedule 2.01 or in the Assignment and Acceptance pursuant to which such
European Tranche Lender shall have assumed its European Tranche Commitment, as
applicable. The aggregate amount of the European Tranche Commitments on the date
hereof is $250,000,000.
"European Tranche Lender" mean a Lender with a European Tranche Commitment or European Tranche Revolving Loans.
"European Tranche Percentage" means, with respect to any European Tranche Lender, the percentage of the total European Tranche Commitments represented by such Lender's European Tranche Commitment. If the European Tranche Commitments have terminated or expired, the European Tranche Percentages shall be determined based upon the European Tranche Commitments most recently in effect, giving effect to any assignments.
"European Tranche Revolving Borrowing" means a Borrowing comprised of European Tranche Revolving Loans.
"European Tranche Revolving Exposure" means, with respect to any European Tranche Lender at any time, such Lender's European Tranche Percentage of the sum of the US Dollar Equivalents of the principal amounts of the outstanding European Tranche Revolving Loans.
"European Tranche Revolving Loan" means a Loan made by a European Tranche Lender pursuant to Section 2.01(c). Each European Tranche Revolving Loan made to the Company shall be denominated in US Dollars and shall be a Eurocurrency Loan or an ABR Loan, and each European Tranche Revolving Loan made to the European Borrower shall be denominated in US Dollars or Euros and shall be a Eurocurrency Loan.
"Event of Default" has the meaning assigned to such term in Article
VII.
"Exchange Rate" means on any day, with respect to any Designated Foreign Currency, the rate at which such Designated Foreign Currency may be exchanged into US Dollars, as set forth at approximately 11:00 a.m., London time, on such day on the Reuters World Currency Page for such Designated Foreign Currency. In the event that such rate does not appear on any Reuters World Currency Page, the Exchange Rate shall be determined by reference to such other publicly available service for displaying exchange rates as may be agreed upon by the Administrative Agent and the Company or, in the absence of such agreement, such Exchange Rate shall instead be the arithmetic average of the spot rates of exchange of the Administrative Agent in the market where its foreign currency exchange operations in respect of such Designated Foreign Currency are then being conducted, at or about 10:00 a.m., local time, on such date for the purchase of US Dollars for delivery two Business Days later; provided that if at the time of any such determination, for any reason, no such spot rate is being quoted, the Administrative Agent, after consultation with the Company, may use any reasonable method it deems appropriate to determine such rate, and such determination shall be presumed correct absent manifest error.
"Excluded Subsidiary" means at any time (a) any Foreign Subsidiary,
(b) any subsidiary of a Foreign Subsidiary and (c) any other Subsidiaries
acquired or organized after the Effective Date that, together with their own
subsidiaries on a combined consolidated basis, shall not, individually or in the
aggregate for all such Subsidiaries under this clause (c), have accounted for
more than 5% of Consolidated Total Assets or more than 5% of the consolidated
total revenues of the Company and the Subsidiaries at the end of, or for the
period of four fiscal quarters ended with, the most recent fiscal quarter of the
Company for which financial statements shall have been delivered pursuant to
Section 5.06(a) or (b) (or, prior to the delivery of any such financial
statements, at the end of or for the period of four fiscal quarters ended
September 30, 2006).
"Excluded Taxes" means, with respect to any Lender or the Issuing Bank, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of America (or any political subdivision thereof), or by the jurisdiction under which such recipient is organized or in which its principal office or any lending office from which it makes Loans or issues Letters of Credit hereunder is located, (b) any branch profit taxes imposed by the United States of America or any similar tax imposed by any other jurisdiction described in clause (a) above, (c) any withholding tax that is imposed by the United States of America (or any political subdivision thereof) on payments by the Company from an office within such jurisdiction to the extent such tax is in effect and would apply as of the date such Lender becomes a party to this Agreement or relates to payments received by a new lending office designated by such Lender and is in effect and would apply at the time such lending office is designated, (d) in the case of a European Tranche Lender (other than a Lender that becomes a European Tranche Lender by operation of the CAM), any withholding tax that is imposed by Ireland (or any political subdivision thereof) on payments by the European Borrower from an office within such jurisdiction to the extent such tax is in effect and would apply
as of the date such European Tranche Lender becomes a party to this Agreement or relates to payments received by a new lending office designated by such European Tranche Lender and is in effect and would apply at the time such lending office is designated or (e) any withholding tax that is attributable to such Lender's failure to comply with Section 2.17(e), except, in the case of clause (c) or (d) above, to the extent that (i) such Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the applicable Borrower with respect to such withholding tax pursuant to Section 2.17(a) or (ii) such withholding tax shall have resulted from the making of any payment to a location other than the office designated by the Applicable Agent or such Lender for the receipt of payments of the applicable type from the applicable Borrower.
"Existing Credit Agreements" means, collectively, the Existing Multiborrower Credit Agreement and the Existing Term Loan Agreement.
"Existing Issuing Bank" means JPMCB and Deutsche Bank Trust Company, in their capacities as issuing banks in respect of Existing Letters of Credit.
"Existing Letters of Credit" means the outstanding letters of credit set forth on Schedule 2.05.
"Existing Multiborrower Credit Agreement" means the Five Year Credit Agreement dated as of December 15, 2004, among the Company, the European Borrower and Waters Chromatography Ireland Limited, a company organized under the laws of Ireland, as borrowers, the lenders from time to time party thereto, JPMCB, as administrative agent, and the London Agent, as London agent.
"Existing Term Loan Agreement" means the Five Year Credit Agreement dated as of November 28, 2005, among the Company, as borrower, the lenders party thereto, and JPMCB, as administrative agent.
"Exposure" means, with respect to any Lender, such Lender's Term Loan Exposure, US Tranche Revolving Exposure and European Tranche Revolving Exposure.
"Federal Funds Effective Rate" means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.
"Foreign Subsidiary" means any Subsidiary that is not incorporated under the laws of the United States or its territories or possessions.
"GAAP" means generally accepted accounting principles in the United States of America.
"Governmental Authority" means any nation or government, any federal, state, local or other political subdivision thereof and any entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government.
"Guarantee Requirement" means, at any time, that the Subsidiary Guarantee Agreement (or a supplement referred to in Section 16 thereof) shall have been executed by each Subsidiary (other than any Excluded Subsidiary) existing at such time, shall have been delivered to the Administrative Agent and shall be in full force and effect; provided, however, that in the case of a Subsidiary that becomes subject to the Guarantee Requirement after the Effective Date, the Guarantee Requirement shall be satisfied with respect to such Subsidiary if a supplement to the Subsidiary Guarantee Agreement is executed by such Subsidiary, delivered to the Administrative Agent and in full force and effect no later than (i) 30 days after the date on which such Subsidiary becomes subject to the Guarantee Requirement or (ii) such other date as the Administrative Agent may reasonably determine, but in any case no later than 60 days after the date on which such Subsidiary becomes subject to the Guarantee Requirement.
"Hedging Agreement" means any interest rate protection agreement, foreign currency exchange agreement or other interest or currency exchange rate hedging arrangement. The "principal amount" of the obligations of any Person in respect of any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that such Person would be required to pay if such Hedging Agreement were terminated at such time.
"Indemnified Taxes" means Taxes other than Excluded Taxes.
"Initial Borrowing Date" means the date of the initial Borrowing hereunder.
"Intangible Assets" means all assets of the Company and the consolidated Subsidiaries that would be treated as intangibles in conformity with GAAP on a consolidated balance sheet of the Company and the consolidated Subsidiaries.
"Interest Coverage Ratio" means, for any period, the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Interest Expense for such period.
"Interest Election Request" means a request by the relevant Borrower to convert or continue a Borrowing in accordance with Section 2.08.
"Interest Payment Date" means (a) with respect to any ABR Loan, the last day of each March, June, September and December and (b) with respect to any Eurocurrency Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurocurrency Borrowing with an Interest Period of more than three months' duration, each day prior to the last day of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period.
"Interest Period" means, with respect to any Eurocurrency Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter (or, if available from each applicable Lender, nine or
twelve months thereafter), as the relevant Borrower may elect; provided that (i)
if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless
such next succeeding Business Day would fall in the next calendar month, in
which case such Interest Period shall end on the next preceding Business Day and
(ii) any Interest Period that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day
of the last calendar month of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made,
and thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.
"Issuing Bank" means JPMCB, in its capacity as the issuer of Letters
of Credit hereunder, and its successors in such capacity as provided in Section
2.05(i). The Issuing Bank may, in its discretion, arrange for one or more
Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case
the term "Issuing Bank" shall include any such Affiliate with respect to Letters
of Credit issued by such Affiliate. The term "Issuing Bank" shall also mean the
Existing Issuing Bank solely with respect to the Existing Letters of Credit.
"JPMCB" means JPMorgan Chase Bank, N.A. and its successors.
"Judgment Currency" has the meaning assigned to such term in Section 11.13(b).
"LC Disbursement" means a payment made by the Issuing Bank in respect of a Letter of Credit.
"LC Exposure" means at any time the sum of (a) the sum of US Dollar Equivalents of undrawn amounts of all outstanding Letters of Credit at such time and (b) the sum of US Dollar Equivalents of the amounts of all LC Disbursements that have not yet been reimbursed by or on behalf of the Company or the applicable Subsidiary at such time. The LC Exposure of any US Tranche Lender at any time shall be such Lender's US Tranche Percentage of the aggregate LC Exposure.
"Lenders" means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Acceptance or as provided in Section 2.10, other than any such Person that shall have ceased to be a party hereto pursuant to an Assignment and Acceptance.
"Letter of Credit" means an Existing Letter of Credit and any letter of credit issued pursuant to this Agreement on behalf of Lenders holding US Tranche Commitments.
"Leverage Ratio" means, at any time, the ratio of (a) Consolidated Debt at such time to (b) Consolidated EBITDA for the most recent period of four consecutive fiscal quarters of the Company ended at or prior to such time; provided, that in the event any Material Acquisition shall have been completed during such period of four consecutive fiscal quarters, the Leverage Ratio shall be computed giving pro forma effect to such Material Acquisition as if it had been completed at the beginning of such period.
"LIBO Rate" means, with respect to any Eurocurrency Borrowing for any Interest Period, the rate per annum determined by the Applicable Agent at approximately 11:00 a.m., London time, on the Quotation Day for such Interest Period by reference to the British Bankers' Association Interest Settlement Rates for deposits in the currency of such Borrowing (as reflected on the applicable Telerate screen), for a period equal to such Interest Period; provided that, to the extent that an interest rate is not ascertainable pursuant to the foregoing provisions of this definition, "LIBO Rate" shall mean the interest rate per annum determined by the Applicable Agent to be the average of the rates per annum at which deposits in the currency of such Borrowing are offered for such Interest Period to major banks in the London interbank market by JPMCB at approximately 11:00 a.m., London time, on the Quotation Day for such Interest Period.
"Lien" means, with respect to any asset, any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset.
"Loan Documents" means this Agreement, the Subsidiary Guarantee Agreement and each Letter of Credit and promissory note delivered pursuant to this Agreement.
"Loan Parties" means the Borrowers and the Subsidiary Guarantors.
"Loans" means the loans made by the Lenders to the Borrowers pursuant to this Agreement.
"Local Time" means (a) with respect to a Loan or Borrowing denominated in US Dollars or any Letter of Credit, New York City time and (b) with respect to a Eurocurrency Loan or Eurocurrency Borrowing denominated in Euros, London time.
"London Agent" means J.P. Morgan Europe Limited.
"Margin Stock" has the meaning ascribed to such term in Regulation U issued by the Board.
"Material Acquisition" means (i) the acquisition by the Company or a Subsidiary of assets of or an interest in another Person or (ii) the merger or consolidation of the Company with another corporation, in each case if the Consolidated Total Assets of the Company after giving effect to such acquisition, merger or consolidation are at least 5% greater than the Consolidated Total Assets of the Company immediately prior to such acquisition, merger or consolidation.
"Material Adverse Effect" means a (i) a material adverse effect on the business, assets, operations or financial condition of the Company and the Subsidiaries, taken as a whole or (ii) a material adverse effect on the validity or enforceability of any one or more provisions of any of the Loan Documents that, taken as a whole, are material.
"Material Debt" means Consolidated Debt in an aggregate principal amount of $20,000,000 or more.
"Material Subsidiary" means each Subsidiary of the Company, other than Subsidiaries designated by the Company from time to time that in the aggregate do not account for more than 15% of the consolidated revenues of the Company and its Subsidiaries for the period of four fiscal quarters most recently ended or more than 15% of the consolidated assets of the Company and its Subsidiaries at the end of such period.
"Maturity Date" means January 11, 2012.
"Moody's" means Moody's Investors Service, Inc.
"Multiemployer Plan" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.
"Obligations" means (a) the due and punctual payment of (i) the principal of and premium, if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans made to any Borrower, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by any Borrower under this Agreement in respect of any Letter of Credit, when and as due, including payments in respect of reimbursement of disbursements, interest thereon and obligations to provide cash collateral and (iii) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Loan Parties under this Agreement and the other Loan Documents, and (b) the due and punctual payment and performance of all obligations of the Company or any Subsidiary, monetary or otherwise, under (i) each interest rate hedging Agreement relating to Obligations referred to in the preceding clause (a) entered into with any counterparty that was a Lender (or an Affiliate thereof) at the time such hedging agreement was entered into and (ii) Cash Management Obligations.
"Other Taxes" means any and all present or future recording, stamp, documentary, excise, transfer, sales, property or similar taxes, charges or levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.
"PBGC" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.
"Person" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
"Plan" means at any time an employee pension benefit plan which is covered by Title IV of ERISA or subject to the minimum standards under Section 412 of the Internal Revenue Code and is either (a) maintained by a member of the ERISA Group for employees of a member of the ERISA Group or (b) maintained pursuant to a collective bargaining agreement or any other arrangement under which more than one employer makes contributions and to which a member of the ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions.
"Prime Rate" means the rate of interest per annum publicly announced from time to time by JPMCB as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.
"Quotation Day" means, with respect to any Eurocurrency Borrowing and any Interest Period, the day on which it is market practice in the relevant interbank market for prime banks to give quotations for deposits in the currency of such Borrowing for delivery on the first day of such Interest Period. If such quotations would normally be given by prime banks on more than one day, the Quotation Day will be the last of such days.
"Ratings" means published debt ratings issued by each of Moody's and S&P with respect to the Company's senior, unsecured, non-credit enhanced long-term indebtedness for borrowed money (each a "Rating").
"Register" has the meaning set forth in Section 11.04(c).
"Reimbursement Obligations" has the meaning set forth in Section 11.02(b).
"Related Fund" means, with respect to any Lender that is a fund that invests in bank loans, any other fund that invests in bank loans and is managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor.
"Related Parties" means, with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees, trustees, agents and advisors of such Person and such Person's Affiliates.
"Required Lenders" means, at any time, Lenders having aggregate Term Loans, Revolving Credit Exposures and unused Commitments representing more than 50% of the sum of the total Term Loans, Revolving Credit Exposures and unused Commitments at such time.
"Reset Date" has the meaning set forth in Section 1.05(a).
"Responsible Officer" of any Person, means the chief executive officer, the chief financial officer, the principal accounting officer, the treasurer or the controller of such Person, and any other officer of such Person with responsibility for the administration of the obligations of such Person under this Agreement.
"Revolving Availability Period" means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Revolving Commitments.
"Revolving Borrowing" means a Borrowing comprised of US Tranche Revolving Loans or European Tranche Revolving Loans.
"Revolving Commitments" means the European Tranche Commitments and the US Tranche Commitments.
"Revolving Credit Exposure" means a US Tranche Revolving Exposure or a European Tranche Revolving Exposure.
"Revolving Loan" means any US Tranche Revolving Loan or European Tranche Revolving Loan.
"S&P" means Standard & Poor's Ratings Service.
"Sale and Leaseback Transaction" means any arrangement whereby the Company or a Subsidiary, directly or indirectly, shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property which it intends to use for substantially the same purpose or purposes as the property being sold or transferred.
"Specified Obligations" means Obligations consisting of the principal of and interest on outstanding Loans, reimbursement obligations in respect of LC Disbursements and any interest with respect thereto, and fees.
"Statutory Reserve Rate" means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal to which the Applicable Agent is subject, for eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in Regulation D of the Board of Governors of the Federal Reserve System of the United States of America). Such reserve percentages include, but are not limited to, those imposed pursuant to such Regulation D. Eurocurrency Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.
"subsidiary" means, with respect to any Person, any entity with respect to which such Person alone owns, such Person or one or more of its subsidiaries together own, or such Person and any Person Controlling such Person together own, in each case directly or indirectly, capital stock or other equity interests having ordinary voting power to elect a majority of the members of the Board of Directors of such corporation or other entity or having a majority interest in the capital or profits of such corporation or other entity.
"Subsidiary" means any subsidiary of the Company.
"Subsidiary Guarantee Agreement" means a Subsidiary Guarantee Agreement substantially in the form of Exhibit B, and all supplements thereto made by the Subsidiary Guarantors in favor of the Administrative Agent for the benefit of the Lenders.
"Subsidiary Guarantors" means each Person listed on Schedule 1.01 and each other Person that becomes party to a Subsidiary Guarantee Agreement as a Subsidiary Guarantor, and the permitted successors and assigns of each such Person.
"Swingline Exposure" means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall be such Lender's US Tranche Percentage of the total Swingline Exposure at such time.
"Swingline Lender" means JPMCB in its capacity as a lender of Swingline Loans hereunder.
"Swingline Loan" means a Loan made pursuant to Section 2.04.
"Taxes" means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority.
"Term Borrowing" means a Borrowing comprised of Term Loans.
"Term Commitment" means, with respect to each Term Lender, the commitment of such Term Lender to make Term Loans pursuant to Section 2.01(a), as such commitment may be (a) reduced from time to time pursuant to Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 11.04. The initial amount of each Term Lender's Term Commitment is set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such Term Lender shall have assumed its Term Commitment, as applicable. The aggregate amount of the Term Commitments on the date hereof is $500,000,000.
"Term Lender" means a Lender with a Term Commitment.
"Term Loan" means a Loan made by a Term Lender pursuant to Section 2.01(a).
"Term Loan Exposure" means, with respect to any Term Lender at any time, the principal amount of such Lender's outstanding Term Loans.
"Transactions" means the execution, delivery and performance by the Loan Parties of the Loan Documents, the borrowing of Loans, the issuance of Letters of Credit hereunder and the use of the proceeds of such Loans and such Letters of Credit.
"Type", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.
"Unfunded Liabilities" means, (a) in the case of a single-employer Plan which is covered by Title IV of ERISA, the amount, if any, by which the present value of all accumulated benefit obligations accrued to the date of determination under such Plan exceeds the fair market value of all assets of such Plan allocable to such benefits as of such date calculated in accordance with GAAP and based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87, as amended, or any successor standard, and (b) in the case of a Multiemployer Plan, the Withdrawal Liability of the Company and the Subsidiaries calculated as set forth in Title IV of ERISA.
"USA Patriot Act" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.
"US Corporation" means a corporation organized and existing under the laws of the United States, any state thereof or the District of Columbia.
"US Dollar Equivalent" means, on any date of determination, (a) with respect to any amount in US Dollars, such amount, and (b) with respect to any amount in any Designated Foreign Currency, the equivalent in US Dollars of such amount, determined by the Administrative Agent pursuant to Section 1.05 using the Exchange Rate with respect to such Designated Foreign Currency at the time in effect under the provisions of such Section.
"US Dollars" or "$" means the lawful money of the United States of America.
"US Tranche Commitment" means, with respect to each US Tranche Lender,
the commitment of such US Tranche Lender to make US Tranche Revolving Loans
pursuant to Section 2.01(b) and acquire participations in Swingline Loans and
Letters of Credit pursuant to Sections 2.04 and 2.05(e), respectively, expressed
as an amount representing the maximum aggregate amount of such US Tranche
Lender's US Tranche Revolving Exposure hereunder, as such commitment may be (a)
reduced from time to time pursuant to Section 2.09, (b) increased pursuant to
Section 2.10 and (c) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 11.04. The initial amount
of each US Tranche Lender's US Tranche Commitment is set forth on Schedule 2.01,
or in the Assignment and Acceptance pursuant to which such US Tranche Lender
shall have assumed its US Tranche
Commitment, as applicable. The aggregate amount of the US Tranche Commitments on the date hereof is $350,000,000.
"US Tranche Lender" mean a Lender with a US Tranche Commitment or US Tranche Revolving Loans.
"US Tranche Percentage" means, with respect to any US Tranche Lender, the percentage of the total US Tranche Commitments represented by such Lender's US Tranche Commitment. If the US Tranche Commitments have terminated or expired, the US Tranche Percentages shall be determined based upon the US Tranche Commitments most recently in effect, giving effect to any assignments.
"US Tranche Revolving Borrowing" means a Borrowing comprised of US Tranche Revolving Loans.
"US Tranche Revolving Exposure" means, with respect to any US Tranche Lender at any time, the sum at such time, without duplication, of (a) such Lender's US Tranche Percentage of the sum of the principal amounts of the outstanding US Tranche Revolving Loans, (b) the aggregate amount of such Lender's LC Exposure and (c) the aggregate amount of such Lender's Swingline Exposure.
"US Tranche Revolving Loan" means a Loan made by a US Tranche Lender pursuant to Section 2.01(b). Each US Tranche Revolving Loan shall be a Eurocurrency Loan or an ABR Loan.
"Withdrawal Liability" means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
Section 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a "US Tranche Revolving Loan") or by Type (e.g., a "Eurocurrency Loan") or by Class and Type (e.g., a "Eurocurrency US Tranche Revolving Loan"). Borrowings also may be classified and referred to by Class (e.g., a "US Tranche Revolving Borrowing") or by Type (e.g., a "US Tranche Eurocurrency Borrowing") or by Class and Type (e.g., a "Eurocurrency US Tranche Revolving Borrowing").
Section 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors
and assigns, (c) the words "herein", "hereof" and "hereunder" and words of similar import shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
Section 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP as in effect from time to time; provided that if the Company notifies the Administrative Agent that the Company requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Company that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.
Section 1.05. Exchange Rates. (a) Not later than 10:00 a.m., New York City time, on each Calculation Date, the Administrative Agent shall (i) determine the Exchange Rate as of such Calculation Date with respect to each Designated Foreign Currency and (ii) give written notice thereof to the Lenders and the Company. The Exchange Rates so determined shall become effective on the first Business Day immediately following the relevant Calculation Date (a "Reset Date"), shall remain effective until the next succeeding Reset Date, and shall for all purposes of this Agreement (other than Section 2.05(e), Section 11.13 or any other provision expressly requiring the use of a current Exchange Rate) be the Exchange Rates employed in converting any amounts between US Dollars and Designated Foreign Currencies.
(b) Not later than 5:00 p.m., New York City time, on each Reset Date and each date on which European Tranche Revolving Loans denominated in Euros are made or Letters of Credit denominated in any Designated Foreign Currency are issued, the Administrative Agent shall (i) determine (A) the aggregate amount of the US Dollar Equivalents of the principal amounts of the European Tranche Revolving Loans denominated in Euros (after giving effect to any European Tranche Revolving Loans made or repaid on such date) and (B) the aggregate amount of the US Dollar Equivalents of the stated amounts of the Letters of Credit and unreimbursed LC Disbursements denominated in Designated Foreign Currencies and (ii) notify the Lenders and the Company of the results of such determination.
ARTICLE II
The Credits
Section 2.01. Commitments. (a) Subject to the terms and conditions set forth herein, each Lender agrees to make a Term Loan to the Company on the Effective Date in a principal amount equal to its Term Commitment.
(b) Subject to the terms and conditions set forth herein, each US Tranche Lender agrees to make US Tranche Revolving Loans to the Company from time to time during the Revolving Availability Period in US Dollars in an aggregate principal amount at any time outstanding that will not result in (i) such Lender's US Tranche Revolving Exposure exceeding its US Tranche Commitment or (ii) the aggregate amount of the Lenders' US Tranche Revolving Exposures exceeding the aggregate amount of the US Tranche Commitments.
(c) Subject to the terms and conditions set forth herein, each European Tranche Lender agrees to make European Tranche Revolving Loans from time to time during the Revolving Availability Period to the European Borrower in US Dollars or Euros and to the Company in US Dollars in an aggregate principal amount at any time outstanding that will not result in (i) such Lender's European Tranche Revolving Exposure exceeding its European Tranche Commitment or (ii) the aggregate amount of the Lenders' European Tranche Revolving Exposures exceeding the aggregate amount of the European Tranche Commitments.
Section 2.02. Loans and Borrowings. (a) Each Term Loan shall be made as part of a Borrowing consisting of Term Loans made by the Term Lenders ratably in accordance with their respective Term Commitments. Each US Tranche Revolving Loan shall be made as part of a Borrowing consisting of US Tranche Revolving Loans made by the US Tranche Lenders ratably in accordance with their respective US Tranche Commitments. Each European Tranche Revolving Loan shall be made as part of a Borrowing consisting of European Tranche Revolving Loans made by the European Tranche Lenders ratably in accordance with their respective European Tranche Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender's failure to make Loans as required hereunder.
(b) Subject to Section 2.14, (i) each Term Borrowing shall be comprised entirely of Eurocurrency Loans or ABR Loans as the Company may request in accordance herewith; (ii) each US Tranche Revolving Borrowing shall be comprised entirely of Eurocurrency Loans or ABR Loans as the Company may request in accordance herewith; (iii) each European Tranche Revolving Borrowing shall be comprised entirely of (A) in the case of a Borrowing made by the Company, Eurocurrency Loans or ABR Loans as the Company may request in accordance herewith and, (B) in the case of a Borrowing made by the European Borrower, Eurocurrency Loans; and (iv) each Swingline Loan shall be comprised entirely of ABR Loans. Each
Lender at its option may make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an Affiliate, the provisions of Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate to the same extent as to such Lender); provided that any exercise of such option shall not affect the obligation of the applicable Borrower to repay such Loan in accordance with the terms of this Agreement.
(c) At the commencement of each Interest Period for any Borrowing (other than a Swingline Loan), such Borrowing shall be in an aggregate amount that is at least equal to the Borrowing Minimum and an integral multiple of the Borrowing Multiple; provided that (i) an ABR Revolving Borrowing may be made in an aggregate amount that is equal to the aggregate available US Tranche Commitments or European Tranche Commitments, as the case may be and (ii) a Revolving Borrowing made to refinance an existing Swingline Loan may be made in an aggregate principal amount that is equal to the aggregate principal amount of such existing Swingline Loan. Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of (i) eight US Tranche Eurocurrency Revolving Borrowings outstanding or (ii) four European Tranche Eurocurrency Revolving Borrowings outstanding.
(d) Notwithstanding any other provision of this Agreement, no Borrower shall be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.
Section 2.03. Notice of Borrowings. To request a Borrowing (other than a Swingline Loan), the applicable Borrower, or the Company on behalf of the applicable Borrower, shall notify the Applicable Agent of such request by telephone (a) in the case of a Eurocurrency Borrowing, not later than 12:00 noon, Local Time, three Business Days before the date of the proposed Borrowing and (b) in the case of an ABR Borrowing, not later than 12:00 noon, Local Time, one Business Day before the date of the proposed Borrowing; provided that any such notice of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may be given not later than 12:00 noon, Local Time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Applicable Agent of a written Borrowing Request in a form approved by the Applicable Agent and signed by the applicable Borrower, or by the Company on behalf of the applicable Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02:
(i) the Borrower requesting such Borrowing (or on whose behalf the Company is requesting such Borrowing);
(ii) whether the requested Borrowing is to be a Term Borrowing, US Tranche Revolving Borrowing or a European Tranche Revolving Borrowing;
(iii) the currency and aggregate principal amount of the requested Borrowing;
(iv) the date of the requested Borrowing, which shall be a Business Day;
(v) the Type of the requested Borrowing;
(vi) in the case of a Eurocurrency Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term "Interest Period"; and
(vii) the location and number of the relevant Borrower's account to which funds are to be disbursed, which shall comply with the requirements of Section 2.06.
If no currency is specified with respect to any requested Eurocurrency Revolving Borrowing, then the relevant Borrower shall be deemed to have selected US Dollars. If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be (i) in the case of a Borrowing by the Company, an ABR Borrowing and (ii) in the case of a Borrowing by the European Borrower, a Eurocurrency Borrowing. If no Interest Period is specified with respect to any requested Eurocurrency Borrowing, then the relevant Borrower shall be deemed to have selected an Interest Period of one month's duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Applicable Agent shall advise each Lender that will make a Loan as part of the requested Borrowing of the details thereof and of the amount of the Loan to be made by such Lender as part of the requested Borrowing.
Section 2.04. Swingline Loans. (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make Swingline Loans to the Company from time to time during the Revolving Availability Period in an aggregate principal amount at any time outstanding that will not exceed the lesser of (i) $25,000,000 and (ii) the difference between (A) total US Tranche Commitments and (B) the sum of (x) the aggregate principal amount of US Tranche Revolving Loans outstanding at such time and (y) the LC Exposure at such time; provided that no Swingline Loan shall be made to refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and conditions set forth herein, the Company may borrow, prepay and reborrow Swingline Loans.
(b) To request a Swingline Loan, the Company shall notify the Administrative Agent of such request by telephone (confirmed by telecopy), not later than 1:00 p.m., New York City time, on the day of a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount (which shall be no less than $1,000,000) of the requested Swingline Loan and the location and number of the Company's account to which funds are to be disbursed, which account shall comply with the requirements of Section 2.06. The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the Company. The Swingline Lender shall make each Swingline Loan
available to the Company by means of a credit or wire transfer to the account specified in writing by the Company in such notice (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e), by remittance to the Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan.
(c) The Swingline Lender may by written notice given to the
Administrative Agent not later than 12:00 noon, New York City time, on any
Business Day require the US Tranche Lenders to acquire participations on such
Business Day in all or a portion of the outstanding Swingline Loans. Such notice
shall specify the aggregate amount of Swingline Loans in which US Tranche
Lenders will participate. Promptly upon receipt of such notice, the
Administrative Agent will give notice thereof to each US Tranche Lender,
specifying in such notice such Lender's US Tranche Percentage of such Swingline
Loan or Swingline Loans. Each US Tranche Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the
Administrative Agent, for the account of the Swingline Lender, such Lender's US
Tranche Percentage of such Swingline Loan or Swingline Loans. Each US Tranche
Lender acknowledges and agrees that its obligation to acquire participations in
Swingline Loans pursuant to this paragraph is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the US Tranche
Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Each US Tranche Lender shall
comply with its obligation under this paragraph by wire transfer of immediately
available funds, in the same manner as provided in Section 2.06 with respect to
Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to
the payment obligations of the US Tranche Lenders), and the Administrative Agent
shall promptly pay to the Swingline Lender the amounts so received by it from
the US Tranche Lenders. The Administrative Agent shall promptly notify the
Company in writing of any participations in any Swingline Loan acquired pursuant
to this paragraph, and thereafter payments in respect of such Swingline Loan
shall be made to the Administrative Agent, for the account of the US Tranche
Lenders, and not to the Swingline Lender. Any amounts received by the Swingline
Lender from the Company (or other party on behalf of the Company) in respect of
a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale
of participations therein shall be promptly remitted to the Administrative
Agent; any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the US Tranche Lenders that shall have
made their payments pursuant to this paragraph and to the Swingline Lender, as
their interests may appear. The purchase of participations in a Swingline Loan
pursuant to this paragraph shall not relieve the Company of any default in the
payment thereof provided, that a US Tranche Lender shall not be required to
purchase a participation in a Swingline Loan pursuant to this Section 2.04(c) if
(x) a Default shall have occurred and was continuing at the time such Swingline
Loan was made and (y) such US Tranche Lender shall have notified the Swingline
Lender in writing, not less than one Business Day before such Swingline Loan was
made, that such Default has occurred and that such US Tranche Lender will not
refund or participate in any Swingline Loans made while such Default exists.
Section 2.05. Letters of Credit. (a) General. Subject to the terms and conditions set forth herein, the Company may request the issuance (or the amendment, renewal or extension) of Letters of Credit denominated in US Dollars or any Designated Foreign Currency, in any case in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the Revolving Availability Period. In the event of any inconsistency between this Agreement and any form of letter of credit application or other agreement submitted by the Company or the European Borrower to, or entered into by the Company or the European Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. The Existing Letters of Credit will, for all purposes of this Agreement, be deemed to have been issued hereunder on the Effective Date and will, for all purposes of this Agreement, constitute Letters of Credit. On the Effective Date, (i) any fronting fees provided for in the agreements under which the Existing Letters of Credit were issued shall cease to accrue and shall be replaced by the fronting fee provided for in Section 2.12(b) (it being understood that any other fees referred to in Section 2.12(b) that shall have been agreed upon by the Company and the Existing Issuing Bank shall continue to apply, but that no new issuance fee will be charged in connection with the deemed issuance of any Existing Letter of Credit on the Effective Date).
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Company shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the currency and amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to enable the Issuing Bank to prepare, amend, renew or extend such Letter of Credit. If requested by the Issuing Bank, the Company also shall submit a letter of credit application on the Issuing Bank's standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Company shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension, (i) the LC Exposure will not exceed $50,000,000 and (ii) the aggregate US Tranche Revolving Exposures will not exceed the aggregate US Tranche Commitments. Notwithstanding anything to the contrary contained herein, no Existing Letter of Credit may be amended, renewed or extended.
(c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the
Maturity Date provided, that any Letter of Credit with a one-year tenor may provide for renewal thereof under procedures satisfactory to the Issuing Bank for additional one-year periods (which shall in no event extend beyond the date referred to in clause (ii) above).
(d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the US Tranche Lenders, the Issuing Bank hereby grants to each US Tranche Lender, and each US Tranche Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such US Tranche Lender's US Tranche Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each US Tranche Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, in US Dollars such Lender's US Tranche Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Company on the date due as provided in paragraph (e) of this Section or of any reimbursement payment required to be refunded to the Company for any reason. Each US Tranche Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the US Tranche Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
(e) Reimbursement. If the Issuing Bank shall make any LC Disbursement
in respect of a Letter of Credit, the Company shall reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement, not later than 1:00 p.m., New York City time, on the date that
such LC Disbursement is made, if the Company shall have received notice of such
LC Disbursement prior to 11:00 a.m., New York City time, on such date, or, if
such notice has not been received by the Company prior to such time on such
date, then not later than 1:00 p.m., New York City time, on (A) the Business Day
that the Company receives such notice, if such notice is received prior to 11:00
a.m., New York City time, on the day of receipt, or (B) the Business Day
immediately following the day that the Company receives such notice, if such
notice is not received prior to such time on the day of receipt. If the Company
fails to make such payment when due then, upon notice from the applicable
Issuing Bank to the Company and the Administrative Agent, (i) if the applicable
Letter of Credit is denominated in a Designated Foreign Currency, the Company's
obligation to reimburse such LC Disbursement shall be converted into an
obligation in US Dollars in such amount as the Administrative Agent shall
determine would be required, based on current exchange rates, to enable it to
purchase an amount of such Designated Foreign Currency equal to the amount of
such LC Disbursement, and (ii) the Administrative Agent shall notify each US
Tranche Lender of the applicable LC Disbursement, the payment then due from the
Company in respect thereof and such Lender's US Tranche Percentage, thereof.
Promptly following receipt of such notice, each US Tranche Lender shall pay to
the Administrative Agent in US Dollars its US Tranche Percentage of the payment
then due from the Company in the same manner as provided in Section 2.06 with
respect to Loans made by such US Tranche Lender (and Section 2.06 shall apply,
mutatis
mutandis, to the payment obligations of the US Tranche Lenders), and the Administrative Agent shall promptly pay to the applicable Issuing Bank the amounts so received by it from the US Tranche Lenders. Promptly following receipt by the Administrative Agent of any payment from the Company pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that US Tranche Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such US Tranche Lenders and the Issuing Bank as their interests may appear. Any payment made by a US Tranche Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement shall not constitute a Loan and shall not relieve the Company of its obligation to reimburse such LC Disbursement.
(f) Obligations Absolute. The Company's obligations to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement or any other Loan Document, or any term or provision
herein or therein, (ii) any draft or other document presented under a Letter of
Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect, (iii) payment by
the Issuing Bank under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit, or
(iv) any other event or circumstance whatsoever, whether or not similar to any
of the foregoing, that might, but for the provisions of this Section, constitute
a legal or equitable discharge of, or provide a right of set-off against, the
Company's obligations hereunder. None of the Administrative Agent, the US
Tranche Lenders or the Issuing Bank, or any of their Related Parties, shall have
any liability or responsibility by reason of or in connection with the issuance
or transfer of any Letter of Credit or any payment or failure to make any
payment thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the Issuing Bank; provided
that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Company to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the
Company to the extent permitted by applicable law) suffered by the Company that
are caused by the Issuing Bank's failure to exercise care when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that, in the absence
of gross negligence or wilful misconduct on the part of the Issuing Bank (as
finally determined by a court of competent jurisdiction), the Issuing Bank shall
be deemed to have exercised care in each such determination. In furtherance of
the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the
contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.
(g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Company by telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Company of its obligation to reimburse the Issuing Bank and the US Tranche Lenders with respect to any such LC Disbursement.
(h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then, unless the Company shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Company reimburses such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that, at all times after the Company fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any US Tranche Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such US Tranche Lender to the extent of such payment.
(i) Replacement of the Issuing Bank. The Issuing Bank may be replaced
at any time by written agreement among the Company, the Administrative Agent,
the replaced Issuing Bank and the successor Issuing Bank. The Administrative
Agent shall notify the Lenders of any such replacement of the Issuing Bank. At
the time any such replacement shall become effective, the Company shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.12(b). From and after the effective date of any such replacement, (i)
the successor Issuing Bank shall have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed
to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain
a party hereto and shall continue to have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit issued by it
prior to such replacement, but shall not be required to issue additional Letters
of Credit.
(j) Cash Collateralization. If the US Tranche Commitments shall be terminated, then on the Business Day that the Company receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, US Tranche Lenders with LC Exposures representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the Company shall deposit in an account with the Administrative Agent, in the
name of the Administrative Agent and for the benefit of the US Tranche Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand presentment, protest or other notice of any kind, all of which are expressly waived by the Borrowers, upon the occurrence of any Event of Default with respect to the Company described in clause (g) of Article VII. Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the Company under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Company's risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Company for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of US Tranche Lenders with LC Exposures representing greater than 50% of the total LC Exposure) be applied to satisfy other obligations of the Company under this Agreement. If the Company is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to it within three Business Days after all Events of Default have been cured or waived.
Section 2.06. Funding of Borrowings. (a) Each Lender shall make each Loan (other than a Swingline Loan) to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds in the applicable currency by 11:00 a.m., Local Time, to the account of the Applicable Agent most recently designated by it for such purpose for Loans of such Class and currency by notice to the applicable Lenders. The Applicable Agent will make such Loans available to the relevant Borrower by promptly crediting the amounts so received, in like funds, to an account of such Borrower (i) in New York City or Boston, in the case of Loans denominated in US Dollars and (ii) in London, in the case of Loans denominated in Euros; provided that US Tranche Revolving Loans made to finance the reimbursement of an LC Disbursement shall be remitted by the Administrative Agent to the Issuing Bank.
(b) Unless the Applicable Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Applicable Agent such Lender's share of such Borrowing, the Applicable Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the relevant Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Applicable Agent, then the applicable Lender and such Borrower severally agree to pay to the Applicable Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to such Borrower to but excluding
the date of payment to the Applicable Agent, at (i) in the case of such Lender, the rate reasonably determined by the Applicable Agent to be the cost to it of funding such amount or (ii) in the case of such Borrower, the interest rate applicable to the subject Loan. If such Lender pays such amount to the Applicable Agent, then such amount shall constitute such Lender's Loan included in such Borrowing and the Applicable Agent shall return to such Borrower any amount (including interest) paid by such Borrower to the Applicable Agent pursuant to this paragraph.
Section 2.07. Repayment of Borrowings; Evidence of Debt. (a) Each Borrower hereby unconditionally promises to pay to the Applicable Agent for the accounts of the applicable Lenders (i) the then unpaid principal amount of each Revolving Borrowing and Term Loan of such Borrower on the Maturity Date and (ii) the then unpaid amount of each Swingline Loan on the earlier of the Maturity Date and the twenty-first Business Day after such Swingline Loan is made.
(b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of each Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.
(c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class, Type and currency thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from each Borrower to each Lender hereunder and (iii) the amount of any sum received by any Agent hereunder for the accounts of the Lenders and each Lender's share thereof. The London Agent shall furnish to the Administrative Agent, promptly after the making of any Loan or Borrowing with respect to which it is the Applicable Agent or the receipt of any payment of principal or interest with respect to any such Loan or Borrowing, information with respect thereto that will enable the Administrative Agent to maintain the accounts referred to in the preceding sentence. The Administrative Agent shall notify the London Agent promptly after the making of any Loan or Borrowing with respect to which it is the Applicable Agent or the receipt of payment of any principal with respect to any such Loan or Borrowing.
(d) The entries made in the accounts maintained pursuant to paragraph
(b) or (c) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of any Borrower to repay
the Loans in accordance with the terms of this Agreement.
(e) Any Lender may request that Loans of any Class made by it to any Borrower be evidenced by a promissory note, substantially in the form of Exhibit E hereto. In such event, each applicable Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by each such promissory note
and interest thereon shall at all times (including after assignment pursuant to
Section 11.04) be represented by one or more promissory notes in such form
payable to the order of the payee named therein (or, if such promissory note is
a registered note, to such payee and its registered assigns).
Section 2.08. Interest Elections. (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurocurrency Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the relevant Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurocurrency Borrowing, may elect Interest Periods therefor, all as provided in this Section and on terms consistent with the other provisions of this Agreement. A Borrower may elect different options with respect to different portions of an affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Revolving Borrowing. This Section shall not apply to Swingline Loans, which may not be converted or continued pursuant to this Section 2.08.
(b) To make an election pursuant to this Section, a Borrower, or the
Company on its behalf, shall notify the Applicable Agent of such election by
telephone by the time that a Borrowing Request would be required under Section
2.03 if such Borrower were requesting a Revolving Borrowing of the Type
resulting from such election to be made on the effective date of such election.
Each such telephonic Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Applicable Agent of a
written Interest Election Request in a form approved by the Administrative Agent
and signed by the relevant Borrower, or by the Company on its behalf.
Notwithstanding any contrary provision herein, this Section shall not be
construed to permit any Borrower to (i) change the currency of any Borrowing,
(ii) elect an Interest Period for Eurocurrency Loans that does not comply with
Section 2.02(d) or (iii) convert any Borrowing to a Borrowing of a Type not
available under the Class of Commitments pursuant to which such Borrowing was
made.
(c) Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02:
(i) the Borrowing to which such Interest Election Request applies and,
if different options are being elected with respect to different portions
thereof, the portions thereof to be allocated to each resulting Borrowing
(in which case the information to be specified pursuant to clauses (iii)
and (iv) below shall be specified for each resulting Borrowing);
(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;
(iii) the Type of the resulting Borrowing; and
(iv) if the resulting Borrowing is to be a Eurocurrency Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term "Interest Period".
If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month's duration.
(d) Promptly following receipt of an Interest Election Request, the Applicable Agent shall advise each Lender holding a Loan to which such request relates of the details thereof and of such Lender's portion of each resulting Borrowing.
(e) If the relevant Borrower fails to deliver a timely Interest Election Request with respect to a Eurocurrency Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period, such Borrowing shall (i) in the case of a Borrowing denominated in US Dollars, be converted to an ABR Borrowing and (ii) in the case of any other Eurocurrency Borrowing, become due and payable on the last day of such Interest Period.
Section 2.09. Termination and Reduction of Commitments. (a) The Term Commitment shall terminate upon the earlier of the borrowing of the Term Loans and 5:00 p.m., New York City time, on the Effective Date. Unless previously terminated, the US Tranche Commitments and European Tranche Commitments shall terminate on the Maturity Date; provided that all Commitments shall terminate at 5:00 p.m., New York City time, on January 31, 2007, if the Effective Date shall not have occurred prior to such time.
(b) The Company may at any time terminate, or from time to time
reduce, without premium or penalty, the Commitments of any Class; provided that
(i) each reduction of the Commitments of any Class shall be in an amount that is
an integral multiple of the Borrowing Multiple and not less than the Borrowing
Minimum, (ii) the Company shall not terminate or reduce the US Tranche
Commitments if, after giving effect to any concurrent prepayment of the US
Tranche Revolving Loans in accordance with Section 2.11, the aggregate US
Tranche Revolving Exposures would exceed the aggregate US Tranche Commitments
and (iii) the Company shall not terminate or reduce the European Tranche
Commitments if, after giving effect to any concurrent prepayment of the European
Tranche Revolving Loans in accordance with Section 2.11, the aggregate European
Tranche Revolving Exposures would exceed the aggregate European Tranche
Commitments.
(c) The Company shall notify the Administrative Agent of any election
to terminate or reduce the Commitments of any Class under paragraph (b) of this
Section at least three Business Days prior to the effective date of such
termination or reduction, specifying the effective date of such election.
Promptly following receipt of any such notice, the Administrative Agent shall
advise the European Agent and the applicable Lenders of the contents thereof.
Each notice delivered by the Company pursuant to this Section shall be
irrevocable; provided that a notice of termination of the Commitments
delivered by the Company may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Company (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments of any Class shall be permanent. Each reduction of the Commitments of any Class shall be made ratably among the applicable Lenders in accordance with their respective Commitments of such Class.
Section 2.10. Increase in Commitments. (a) The Company may on one or more occasions, by written notice to the Administrative Agent (which shall promptly deliver a copy to each of the Lenders), request that the total US Tranche Commitments or European Tranche Commitments be increased by an amount not less than $25,000,000 (with simultaneous increases in the US Tranche Commitments and the European Tranche Commitments being deemed to be a single increase); provided that the aggregate amount of the increases in the US Tranche Commitments and the European Tranche Commitments shall not exceed $250,000,000. Such notice shall set forth the amount of the requested increase in the total US Tranche Commitments or European Tranche Commitments, as the case may be, and the date on which such increase is requested to become effective (which shall be not less than 30 days or more than 60 days after the date of such notice), and shall offer each Lender the opportunity to increase its Commitment by its US Tranche Percentage or European Tranche Percentage, as the case may be, of the proposed increased amount. Each applicable Lender shall, by notice to the Company and the Administrative Agent given not more than 10 Business Days after the date of the Company's notice, either agree to increase its applicable Commitment by all or a portion of the offered amount (each Lender so agreeing being an "Increasing Lender") or decline to increase its applicable Commitment (and any Lender that does not deliver such a notice within such period of 10 Business Days shall be deemed to have declined to increase its Commitment) (each Lender so declining or deemed to have declined being a "Non-Increasing Lender"). In the event that, on the 10th Business Day after the Company shall have delivered a notice pursuant to the first sentence of this paragraph, the Lenders shall have agreed pursuant to the preceding sentence to increase their Commitments by an aggregate amount less than the increase in the total Commitments requested by the Company, the Company may arrange for one or more banks or other financial institutions (any such bank or other financial institution being called an "Augmenting Lender"), which may include any Lender, to extend US Tranche Commitments or European Tranche Commitments, as the case may be, or increase their existing US Tranche Commitments or European Tranche Commitments, as the case may be, in an aggregate amount equal to the unsubscribed amount; provided that each Augmenting Lender, if not already a Lender hereunder, shall be subject to the approval of the Administrative Agent, the Issuing Bank and the Swingline Lender (which approval shall not be unreasonably withheld) and the Borrowers and each Augmenting Lender shall execute all such documentation as the Administrative Agent shall reasonably specify to evidence the Commitment of such Augmenting Lender and/or its status as a Lender hereunder. Any increase in the total US Tranche Commitments or European Tranche Commitments, as the case may be, may be made in an amount which is less than the increase requested by the Company if the Company is unable to arrange for, or chooses not to arrange for, Augmenting Lenders.
(b) On the effective date (the "Increase Effective Date") of any
increase in the total US Tranche Commitments or European Tranche Commitments
pursuant to this Section (the "Commitment Increase"), (i) the aggregate
principal amount of the US Tranche Revolving Loans or European Tranche Revolving
Loans, as the case may be, outstanding (the "Initial Loans") immediately prior
to giving effect to the Commitment Increase on the Increase Effective Date shall
be deemed to be paid, (ii) each Increasing Lender and each Augmenting Lender
that shall have been a US Tranche Lender or European Tranche Lender, as the case
may be, prior to the Commitment Increase shall pay to the Administrative Agent
or, if designated by the Administrative Agent for such purpose, the European
Agent in same day funds an amount equal to the difference between (A) the
product of (1) such Lender's US Tranche Percentage or European Tranche
Percentage, as the case may be (calculated after giving effect to the Commitment
Increase), multiplied by (2) the amount of the Subsequent Borrowings (as
hereinafter defined) and (B) the product of (1) such Lender's US Tranche
Percentage or European Tranche Percentage, as the case may be (calculated
without giving effect to the Commitment Increase), multiplied by (2) the amount
of the Initial Loans, (iii) each Augmenting Lender that shall not have been a
Lender prior to the Commitment Increase shall pay to the Administrative Agent
or, if designated by the Administrative Agent for such purpose, the European
Agent in same day funds an amount equal to the product of (1) such Augmenting
Lender's US Tranche Percentage or European Tranche Percentage (calculated after
giving effect to the Commitment Increase) multiplied by (2) the amount of the
Subsequent Borrowings, and (iv) after the Administrative Agent or European Agent
receives the funds specified in clauses (ii) and (iii) above, the Administrative
Agent or European Agent shall pay to each Non-Increasing Lender the portion of
such funds that is equal to the excess of (A) the product of (1) such
Non-Increasing Lender's US Tranche Percentage or European Tranche Percentage
(calculated without giving effect to the Commitment Increase) multiplied by (2)
the amount of the Initial Loans, over (B) the product of (1) such Non-Increasing
Lender's US Tranche Percentage or European Tranche Percentage (calculated after
giving effect to the Commitment Increase) multiplied by (2) the amount of the
Subsequent Borrowings, (v) after the effectiveness of the Commitment Increase,
the applicable Borrowers shall be deemed to have made new Borrowings (the
"Subsequent Borrowings") in an aggregate principal amount equal to the aggregate
principal amount of the Initial Loans and of the types and for the Interest
Periods specified in a Borrowing Request delivered to the Administrative Agent
in accordance with Section 2.03, (vi) each Non-Increasing Lender, each
Increasing Lender and each Augmenting Lender shall be deemed to hold its US
Tranche Percentage or European Tranche Percentage, as the case may be, of each
Subsequent Borrowing (each calculated after giving effect to the Commitment
Increase) and (vii) the applicable Borrowers shall pay each Increasing Lender
and each Non-Increasing Lender any and all accrued but unpaid interest on the
Initial Loans. The deemed payments made pursuant to clause (i) above in respect
of each Eurocurrency Loan shall be subject to indemnification by the Borrowers
pursuant to the provisions of Section 2.16 if the Increase Effective Date occurs
other than on the last day of the Interest Period relating thereto and breakage
costs result. In the case of an increase in the European Tranche Commitments at
a time when Loans denominated in both Euro and US Dollars shall be outstanding,
the amounts payable by the Increasing Lenders and any Requesting Lenders
pursuant to this paragraph
shall be paid in Euro and US Dollars in proportion to the principal amounts of the Euro and US Dollar denominated European Tranche Revolving Loans outstanding on the Increase Effective Date.
(c) Increases and new Commitments pursuant to this Section shall become effective on the date specified in the notice delivered by the Company pursuant to the first sentence of paragraph (a) above.
(d) Notwithstanding the foregoing, no increase in the Commitments of any Class (or in any Commitment of any Lender) or addition of an Augmenting Lender shall become effective under this Section unless, (i) on the date of such increase, the conditions set forth in paragraphs (a) and (b) of Section 4.02 shall be satisfied and the Administrative Agent shall have received a certificate to that effect dated such date and executed by the chief financial officer of the Company, and (ii) the Administrative Agent shall have received (with sufficient copies for each of the Lenders) documents consistent with those delivered on the Effective Date under clauses (b) and (c) of Section 4.01 as to the corporate power and authority of the applicable Borrowers to borrow hereunder after giving effect to such increase.
Section 2.11. Prepayment of Loans. (a) Any Borrower shall have the right at any time and from time to time to prepay any Borrowing of such Borrower in whole or in part, subject to prior notice in accordance with paragraph (d) of this Section.
(b) If the aggregate Exposures of any Class shall exceed the aggregate Commitments of such Class, then (i) on the last day of any Interest Period for any Eurocurrency Revolving Borrowing and (ii) on any other date in the event ABR Revolving Borrowings of such Class shall be outstanding, the applicable Borrowers shall prepay Revolving Loans of such Class in an amount equal to the lesser of (A) the amount necessary to eliminate such excess (after giving effect to any other prepayment of Loans on such day) and (B) the amount of the applicable Borrowings referred to in clause (i) or (ii), as applicable. If, on any Reset Date, the aggregate amount of the Exposures of any Class shall exceed 105% of the aggregate Commitments of such Class, then the applicable Borrowers shall, not later than the next Business Day, prepay one or more Borrowings of such Class in an aggregate principal amount sufficient to eliminate such excess.
(c) Prior to any prepayment of Borrowings hereunder, the applicable
Borrower shall select the Borrowing or Borrowings to be prepaid and shall
specify such selection in the notice of such prepayment pursuant to paragraph
(d) of this Section.
(d) The applicable Borrower, or the Company on behalf of the
applicable Borrower, shall notify the Applicable Agent by telephone (confirmed
by telecopy) of any prepayment of a Borrowing hereunder not later than 11:00
a.m., Local Time, three Business Days before the date of such prepayment (to the
extent practicable, in the case of a prepayment under paragraph (b) above). Each
such notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid; provided
that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Commitments as
contemplated by Section 2.09(c), then such notice of prepayment may be revoked
if such notice of termination is revoked in accordance with Section 2.09(c).
Promptly following receipt of any such notice, the Applicable Agent shall advise
the applicable Lenders of the contents thereof. Each partial prepayment of any
Borrowing shall be in an amount that would be permitted in the case of an
advance of a Borrowing of the same Type as provided in Section 2.02. Each
prepayment of a Borrowing shall be applied ratably to the Loans included in the
prepaid Borrowing. Prepayments shall be accompanied by (i) accrued interest to
the extent required by Section 2.13 and (ii) break funding payments pursuant to
Section 2.16.
Section 2.12. Fees. (a) The Company agrees to pay to the Administrative Agent for the account of each Lender a facility fee, which shall accrue (i) with respect to US Tranche Lenders and European Tranche Lenders, at the Applicable Rate with respect to the facility fee (A) on the daily amount of the US Tranche Commitment and the European Tranche Commitment of such Lender (whether used or unused) during the period from and including the date hereof to but excluding the date on which the last of such Commitments terminates and (B) after the Commitment of each Class terminates, on the daily amount of such Lender's Exposure of such Class to but excluding the date on which such Lender ceases to have any such Exposure and (ii) with respect to Term Lenders, at the Applicable Rate with respect to the facility fee on the daily amount of such Lender's Term Loan Exposure to but excluding the date on which such Lender ceases to have any Term Loan Exposure. Accrued facility fees shall be payable in arrears on the last day of March, June, September and December of each year, commencing on the first such date to occur after the date hereof, and on the date on which all the Commitments shall have terminated and the Lenders shall have no further Exposures. All facility fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
(b) The Company agrees to pay (i) to the Administrative Agent for the
account of each US Tranche Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the Applicable Rate
used to determine the interest rate applicable to US Tranche Eurocurrency
Revolving Loans on the daily amount of such US Tranche Lender's LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the date hereof to but excluding the later
of the date on which such US Tranche Lender's US Tranche Commitment terminates
and the date on which such Lender ceases to have any LC Exposure, and (ii) to
the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per
annum on the average daily amount of the LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the period from
and including the date hereof to but excluding the later of the date of
termination of the US Tranche Commitments and the date on which there ceases to
be any LC Exposure, as well as the Issuing Bank's standard fees with respect to
the issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. Participation fees and fronting fees accrued
under this paragraph through and including the last day of March, June,
September and December of each year shall be payable on
such last day, commencing on the first such date to occur after the date hereof; provided that all such fees shall be payable on the date on which the US Tranche Commitments terminate and any such fees accruing after the date on which the US Tranche Commitments terminate shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand. All participation fees and fronting fees payable under this paragraph shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
(c) The Company agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Company and the Administrative Agent.
(d) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for prompt distribution, in the case of facility fees and participation fees with respect to Letters of Credit, to the Lenders. Fees paid hereunder shall not be refundable.
Section 2.13. Interest. (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate.
(b) The Loans comprising each Eurocurrency Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.
(c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee payable by any Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% per annum plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Revolving Loans as provided in paragraph (a) above.
(d) Accrued interest on each Loan shall be payable by the applicable
Borrower in arrears on each Interest Payment Date for such Loan; provided that
(i) interest accrued pursuant to paragraph (c) above shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of an ABR Revolving Loan prior to the end of the Revolving
Availability Period), accrued interest on the principal amount repaid or prepaid
shall be payable on the date of such repayment or prepayment and (iii) in the
event of any conversion of any Eurocurrency Revolving Loan prior to the end of
the current Interest Period therefor, accrued interest on such Loan shall be
payable on the effective date of such conversion.
(e) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when
the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by the Applicable Agent, and such determination shall be conclusive absent manifest error.
Section 2.14. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurocurrency Borrowing denominated in any currency:
(a) the Applicable Agent determines (which determination shall be conclusive absent manifest error) that adequate means do not exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or
(b) the Applicable Agent is advised by a majority in interest of the Lenders that would participate in such Borrowing that the Adjusted LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; then the Applicable Agent shall give notice thereof to the applicable Borrower and the applicable Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Applicable Agent notifies the applicable Borrower and the applicable Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing denominated in such currency to, or continuation of any Revolving Borrowing denominated in such currency as, a Eurocurrency Borrowing shall be ineffective, and any Eurocurrency Borrowing denominated in such currency that is requested to be continued shall be repaid on the last day of the then current Interest Period applicable thereto, and (ii) any Borrowing Request for a Eurocurrency Revolving Borrowing denominated in such currency shall be ineffective.
Section 2.15. Increased Costs. (a) If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender or the Issuing Bank; or
(ii) impose on any Lender or the Issuing Bank or the London interbank market any other condition affecting this Agreement or Eurocurrency Loans made by such Lender or any Letter of Credit or participations therein;
and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurocurrency Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Company will pay or cause the European Borrower to pay to such Lender or the Issuing Bank, as the case may be, such additional
amount or amounts as will compensate such Lender or the Issuing Bank for such additional costs incurred or reduction suffered.
(b) If any Lender or the Issuing Bank reasonably determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender's or Issuing Bank's capital or on the capital of such Lender's or Issuing Bank's holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company could have achieved but for such Change in Law (taking into consideration such Lender's or the Issuing Bank's policies and the policies of such Lender's or the Issuing Bank's holding company with respect to capital adequacy), then from time to time the Company will pay or cause the European Borrower to pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company for any such reduction suffered.
(c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or such Lender's or the Issuing Bank's holding company, as the case may be, as specified in paragraph (a) or (b) of this Section, and setting forth in reasonable detail the calculations used by such Lender or the Issuing Bank to determine such amount, shall be delivered to the Company and shall be conclusive absent manifest error. The Company shall pay or cause the European Borrower to pay to such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within 15 Business Days after receipt thereof. Any additional interest owed pursuant to paragraph (b) above shall be determined by the relevant Lender, which determination shall be conclusive absent manifest error, and notified to the relevant Borrower (with copies to the Administrative Agent and the London Agent) at least five Business Days before each date on which interest is payable for the relevant Loan, and such additional interest so notified to the relevant Borrower by such Lender shall be payable to the London Agent for the account of such Lender on each date on which interest is payable for such Loan.
(d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation; provided that the Company shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the applicable Borrower of the Change in Law giving rise to such increased costs or reductions; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.
Section 2.16. Break Funding Payments. In the event of (a) the payment (or deemed payment pursuant to Section 2.10) of any principal of any Eurocurrency Loan
other than on the last day of an Interest Period applicable thereto (including
as a result of an Event of Default), (b) the conversion of any Eurocurrency Loan
to a Loan of a different Type or Interest Period other than on the last day of
the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section
2.11(d) and is revoked in accordance therewith), or (d) the assignment or deemed
assignment of any Eurocurrency Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Company pursuant to
Section 2.19 or the CAM Exchange, then, in any such event, the applicable
Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurocurrency Loan, such loss, cost
or expense to any Lender shall be deemed to include an amount determined by such
Lender to be the excess, if any, of (i) the amount of interest that would have
accrued on the principal amount of such Loan had such event not occurred, at the
Adjusted LIBO Rate that would have been applicable to such Loan, for the period
from the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to borrow, convert or continue, for the
period that would have been the Interest Period for such Loan), over (ii) the
amount of interest that would accrue on such principal amount for such period at
the interest rate such Lender would bid were it to bid, at the commencement of
such period, for deposits in the applicable currency of a comparable amount and
period from other banks in the London interbank market. A certificate of any
Lender setting forth any amount or amounts that such Lender is entitled to
receive pursuant to this Section, and setting forth in reasonable detail the
calculations used by such Lender to determine such amount or amounts, shall be
delivered to the applicable Borrower and shall be conclusive absent manifest
error. The applicable Borrower shall pay such Lender the amount shown as due on
any such certificate within 15 Business Days after receipt thereof.
Section 2.17. Taxes. (a) Any and all payments by or on account of any Borrower hereunder or under any other Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if any Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, the London Agent, the applicable Lender or the Issuing Bank, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Borrower shall make such deductions and (iii) such Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.
(b) In addition, the Loan Parties shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.
(c) Each Borrower shall indemnify the Administrative Agent, the London Agent, each Lender and the Issuing Bank, within 15 Business Days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by such Agent or Lender or the Issuing Bank, as the case may be, on or with respect to any payment by or on account of any obligation of such Borrower hereunder or under any other Loan
Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability setting forth in reasonable detail the circumstances giving rise thereto and the calculations used by such Lender to determine the amount thereof delivered to the Company by a Lender or the Issuing Bank, or by an Agent, on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent manifest error.
(d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by any Borrower to a Governmental Authority, such Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
(e) Any Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which a Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Company (with a copy to the Administrative Agent), at the time or times prescribed by applicable law, such properly completed and executed documentation prescribed by applicable law or reasonably requested by the Company as will permit such payments to be made without withholding or at a reduced rate (including, in the case of a European Tranche Lender, the certificate attached hereto as Exhibit C); provided that such Lender has received written notice from the Company advising it of the availability of such exemption or reduction and containing all applicable documentation. Each Lender shall promptly notify the Company at any time it determines that it is no longer in a position to provide any such previously delivered documentation to the Company.
Section 2.18. Payments Generally; Pro Rata Treatment; Sharing of Setoffs. (a) Each Borrower shall make each payment required to be made by it hereunder or under any other Loan Document (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to 12:00 noon, Local Time, on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Applicable Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Applicable Agent to the applicable account specified in Schedule 2.18 or, in any such case, to such other account as the Applicable Agent shall from time to time specify in a notice delivered to the Company; provided that payments to be made directly to the Issuing Bank as expressly provided herein and payments pursuant to Sections 2.15, 2.16, 2.17 and 11.03 shall be made directly to the Persons entitled thereto and payments pursuant to other Loan Documents shall be made to the Persons specified therein (it being agreed that the Borrowers will be deemed to have satisfied their obligations with respect to payments
referred to in this proviso if they shall make such payments to the persons entitled thereto in accordance with instructions provided by the Administrative Agent; the Administrative Agent agrees to provide such instructions upon request, and no Borrower will be deemed to have failed to make such a payment if it shall transfer such payment to an improper account or address as a result of the failure of the Administrative Agent to provide proper instructions). The Applicable Agent shall distribute any such payments received by it for the account of any Lender or other Person promptly following receipt thereof at the appropriate lending office or other address specified by such Lender or other Person. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder of principal or interest in respect of any Loan or LC Disbursement shall, except or otherwise expressly provided herein, be made in the currency of such Loan or LC Disbursement; all other payments hereunder and under each other Loan Document shall be made in US Dollars. Any payment required to be made by an Agent hereunder shall be deemed to have been made by the time required if such Agent shall, at or before such time, have taken the necessary steps to make such payment in accordance with the regulations or operating procedures of the clearing or settlement system used by such Agent to make such payment.
(b) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of their respective Loans and participations in LC Disbursements and accrued interest thereon; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by any Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Company or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.
(c) Unless the Applicable Agent shall have received notice from the relevant Borrower prior to the date on which any payment is due for the account of all or
certain of the Lenders or the Issuing Bank hereunder that such Borrower will not make such payment, the Applicable Agent may assume that such Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the applicable Lenders or the Issuing Bank, as the case may be, the amount due. In such event, if such Borrower has not in fact made such payment, then each of the applicable Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Applicable Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Applicable Agent, at a rate determined by the Applicable Agent in accordance with banking industry practices on interbank compensation.
(d) If any Lender shall fail to make any payment required to be made by it to any Agent pursuant to this Agreement, then the Agents may, in their discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by them for the account of such Lender to satisfy such Lender's obligations to the Agents until all such unsatisfied obligations are fully paid.
Section 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests compensation under Section 2.15, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Company hereby agrees to pay all reasonable, direct, out-of-pocket costs and expenses incurred by any Lender in connection with any such designation or assignment.
(b) If any Lender requests compensation under Section 2.15, or if any
Loan Party is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.17,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Company may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 11.04), all its interests, rights and obligations under the Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (i) the
Company shall have received the prior written consent of the Administrative
Agent (and if a US Tranche Revolving Commitment is being assigned, the Issuing
Bank and the Swingline Lender), which consent shall not be unreasonably withheld
and (ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and participations in LC Disbursements,
accrued interest thereon, accrued fees and all other amounts payable to it
hereunder, from the assignee or the Company. A Lender shall not be required to
make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the Company to require such assignment and delegation cease to apply.
ARTICLE III
Representations and Warranties
Each of the Company and the European Borrower represents and warrants as follows:
Section 3.01. Corporate Existence and Standing. The Company and each Subsidiary is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, except for failures which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect or a material adverse effect on the rights or interests of the Lenders hereunder, and has all requisite authority to conduct its business in each jurisdiction in which the failure so to qualify could reasonably be expected to result in a Material Adverse Effect. The European Borrower is a wholly owned direct or indirect subsidiary of the Company.
Section 3.02. Authorization; No Violation. The Transactions are within each Loan Party's corporate or partnership powers, have been duly authorized by all necessary corporate or partnership action and do not contravene (i) any Loan Party's charter, by-laws or other constitutive documents or (ii) any law or contractual restriction binding on or affecting any Loan Party, except for contraventions of contractual restrictions which individually or in the aggregate could not reasonably be expected to result in a Material Adverse Effect or a material adverse effect on the rights or interests of the Lender hereunder.
Section 3.03. Governmental Consents. No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or regulatory body is required for the due execution, delivery and performance by the Loan Parties of this Agreement or the other Loan Documents.
Section 3.04. Validity. This Agreement is, and the other Loan Documents when executed and delivered will be, the legal, valid and binding obligations of the Loan Parties party thereto, enforceable against such Loan Parties in accordance with their respective terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally and to the effect of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
Section 3.05. Use of Proceeds. The Borrowers will use the proceeds of the Loans and the Letters of Credit only for the purposes specified in the preamble to this Agreement.
Section 3.06. Litigation. As of the date hereof, there is no pending or, to the best of the knowledge of the Borrowers, threatened action or proceeding affecting the
Company or any of its Subsidiaries before any court, Governmental Authority or arbitrator, which could reasonably be expected to result in a Material Adverse Effect, or which purports to affect the legality, validity or enforceability of this Agreement or any other Loan Document.
Section 3.07. Financial Statements; No Material Adverse Change. (a) The consolidated balance sheet of the Company and the Subsidiaries and the related consolidated statements of income, shareholders' equity and cash flows of the Company and the Subsidiaries (i) as at December 31, 2005, and for the year then ended, which financial statements are accompanied by the report of PricewaterhouseCoopers LLC, and (ii) as at April 1, July 1 and September 30, 2006, and for the fiscal quarters and the portions of the fiscal year then ended, certified by the Company's chief financial officer, as heretofore furnished to the Lenders, fairly present in all material respects the consolidated financial condition of the Company and the Subsidiaries as at such dates and their consolidated results of operations, shareholders' equity and cash flows for the periods then ended in conformity with GAAP, subject to year-end adjustments and the absence of footnotes in the case of the statements referred to in clause (ii) above.
(b) As of the date hereof, there has been, since December 31, 2005, no Material Adverse Effect.
Section 3.08. Investment Company Act. The Company is not an "investment company" or a company "controlled" by an "investment company" within the meaning of the Investment Company Act of 1940, as amended.
Section 3.09. Taxes. The Company and each Subsidiary has timely filed or caused to be filed all Tax returns and reports required to have been filed by it and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Company or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.
Section 3.10. ERISA. (a) No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.
(b) The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87, as amended, or any successor standard) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan by an amount that could reasonably be expected to result in a Material Adverse Effect, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of
all such underfunded Plans by an amount that could reasonably be expected to result in a Material Adverse Effect.
Section 3.11. Regulation U. Neither the Company nor any of the Subsidiaries is engaged in the business of purchasing or carrying Margin Stock. The value of the Margin Stock owned directly or indirectly by the Company and the Subsidiaries which is subject to any arrangement hereunder described in the definition of "indirectly secured" in Section 221.2 of Regulation U issued by the Board represents less than 25% of the value of all assets of the Company and the Subsidiaries subject to such arrangement. For the purpose of making the calculation pursuant to the preceding sentence, to the extent consistent with Regulation U, Treasury Stock shall be deemed not to be an asset of the Company and its Subsidiaries.
Section 3.12. Environmental Matters. The operations of the Company and each Subsidiary comply in all material respects with all Environmental Laws, the noncompliance with which could reasonably be expected to result in a Material Adverse Effect.
Section 3.13. Disclosure. None of the Confidential Information Memorandum or any other information prepared and furnished by or on behalf of the Loan Parties to any Agent or Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains or will contain as of the date thereof (or, in the case of any such information that is not dated, the earliest date on which such information is furnished to the Administrative Agent or any Lender) any material misstatement of fact or omits or will omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, the Company represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.
Section 3.14. Subsidiary Guarantors. The Subsidiary Guarantors include each Subsidiary of the Company other than Excluded Subsidiaries and newly-acquired or created Domestic Subsidiaries that are not yet required to have become Subsidiary Guarantors under the definition of "Guarantee Requirement".
ARTICLE IV
Conditions
Section 4.01. Effective Date. The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions has been satisfied (or waived in accordance with Section 11.02):
(a) The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which
may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.
(b) The Administrative Agent shall have received favorable written opinions (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of (i) Bingham McCutchen LLP, counsel for the Company, substantially in the form of Exhibit D-1, (ii) Matheson Ormsby Prentice, Irish counsel for the European Borrower, substantially in the form of Exhibit D-2 and (iii) the general counsel of the Company, substantially in the form of Exhibit D-3. Each Loan Party hereby requests such counsel to deliver such opinions.
(c) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the formation, existence and good standing of the Loan Parties and the authorization of the Transactions, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
(d) The Administrative Agent shall have received (i) a certificate, dated the Effective Date and signed by the chief financial officer of the Company, confirming that the conditions set forth in paragraphs (a) and (b) of Section 4.02 and in paragraphs (f) and (g) of this Section have been satisfied.
(e) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent an invoice with respect thereto shall have been received by the Company, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Company hereunder or under any other Loan Document.
(f) The Guarantee Requirement shall be satisfied.
(g) The Existing Credit Agreements shall have been terminated, all amounts outstanding or accrued thereunder shall have been paid and all letters of credit issued thereunder (other than the Existing Letters of Credit) shall have been terminated or shall have expired.
The Administrative Agent shall notify the Company and the Lenders of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions shall be satisfied (or waived pursuant to Section 11.02) on or prior to January 31, 2007.
Section 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the occasion of each Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:
(a) The representations and warranties of the Loan Parties set forth in the
Loan Documents shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, other than representations which are given as of a particular date, in which case such representations shall be true and correct as of that date.
(b) At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, and the application of the proceeds thereof, no Default shall have occurred and be continuing.
Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Company on the date thereof as to the matters specified in paragraphs (a) and
(b) of this Section.
ARTICLE V
Affirmative Covenants
Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired or terminated and all LC Disbursements have been reimbursed, each of the Company and the European Borrower covenants and agrees with the Lenders that it will:
Section 5.01. Payment of Taxes, Etc. Pay and discharge, and cause each Subsidiary to pay and discharge, before the same shall become delinquent, (i) all material taxes, assessments and governmental charges or levies imposed upon it or upon its income, profit or property, and (ii) all material lawful claims which, if unpaid, might by law become a lien upon its property; provided, however, that neither the Company nor any Subsidiary shall be required to pay or discharge any such tax, assessment, charge or claim which is being contested in good faith and by proper proceedings and with respect to which the Company shall have established appropriate reserves in accordance with GAAP.
Section 5.02. Preservation of Existence, Etc. Preserve and maintain, and cause each Subsidiary to preserve and maintain, its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business, except to the extent that failures to keep in effect such rights, licenses, permits, privileges, franchises and, in the case of Subsidiaries only, legal existence could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution not prohibited under Section 6.04.
Section 5.03. Compliance with Laws, Etc. Comply, and cause each Subsidiary to comply, with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority (including, without limitation, all Environmental
Laws), noncompliance with which could reasonably be expected to result in a Material Adverse Effect.
Section 5.04. Keeping of Books. Keep, and cause each Subsidiary to keep, proper books of record and account in all material respects, in which full and correct entries shall be made of all financial transactions and the assets and business of the Company and each Subsidiary in accordance with GAAP consistently applied.
Section 5.05. Inspection. Permit, and cause each Subsidiary to permit, the Administrative Agent, and its representatives and agents, to inspect any of the properties, corporate books and financial records of the Company and its Subsidiaries, to examine and make copies of the books of account and other financial records of the Company and its Subsidiaries, and to discuss the affairs, finances and accounts of the Company and its Subsidiaries with, and to be advised as to the same by, their respective officers or directors, at such reasonable times and upon reasonable advance notice during normal business hours and intervals as the Administrative Agent may reasonably designate.
Section 5.06. Reporting Requirements. Furnish to the Administrative Agent for distribution to each Lender:
(a) As soon as available and in any event within 55 days after the end of each of the first three quarters of each fiscal year of the Company, a consolidated balance sheet of the Company and the consolidated Subsidiaries as of the end of such quarter and consolidated statements of income and changes in financial position (or consolidated statement of cash flow, as the case may be) of the Company and the consolidated Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, certified by the chief financial officer of the Company;
(b) As soon as available and in any event within 100 days after the end of each fiscal year of the Company, an audited consolidated balance sheet of the Company and the consolidated Subsidiaries as of the end of such year and audited consolidated statements of income and stockholder's equity and changes in financial position of the Company and the consolidated Subsidiaries for such fiscal year and accompanied by a report of PricewaterhouseCoopers LLC, independent public accountants of the Company, or other independent public accountants of nationally recognized standing, on the results of their examination of such consolidated annual financial statements of the Company and the consolidated Subsidiaries, which report shall be reported on without a "going concern" or like qualification or exception, or qualification arising out of the scope of the audit, or shall be otherwise reasonably acceptable to the Required Lenders;
(c) Promptly after the sending or filing thereof, copies of all financial information, reports and proxy materials the Company files with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including, without limitation, all such reports that disclose material
litigation pending against the Company or any Subsidiary or any material noncompliance with any Environmental Law on the part of the Company or any Subsidiary;
(d) Together with each delivery of financial statements pursuant to clause (a) or (b) above, a certificate signed by the chief financial officer of the Company (A) stating that no Default exists or, if any does exist, stating the nature and status thereof and describing the action the Company proposes to take with respect thereto, (B) demonstrating, in reasonable detail, the calculations used by such officer to determine compliance with the financial covenants contained in Sections 6.07 and 6.08 and (C) identifying the Subsidiaries, if any, that are "Excluded Subsidiaries" under clause (c) of the definition of such term;
(e) With respect to each fiscal year for which the Company shall have an aggregate Unfunded Liability of $20,000,000 or more for all of its single employer Plans covered by Title IV of ERISA and all Multiemployer Plans covered by Title IV of ERISA to which the Company has an obligation to contribute, as soon as available, and in any event within ten months after the end of such fiscal year, a statement of Unfunded Liabilities of each such Plan or Multiemployer Plan, certified as correct by an actuary enrolled in accordance with regulations under ERISA and a statement of estimated Withdrawal Liability as of the most recent plan year end as customarily prepared by the trustees under the Multiemployer Plans to which the Company has an obligation to contribute;
(f) As soon as possible, and in any event within 30 days after the occurrence of each event the Company knows is or may be a reportable event (as defined in Section 4043 of ERISA, but excluding any reportable event with respect to which the 30 day reporting requirement has been waived) with respect to any Plan or Multiemployer Plan with an Unfunded Liability in excess of $20,000,000, a statement signed by the chief financial officer of the Company describing such reportable event and the action which the Company proposes to take with respect thereto;
(g) As soon as possible, and in any event within five Business Days after a Responsible Officer of the Company shall become aware of the occurrence of each Default, which Default is continuing on the date of such statement, a statement of the chief financial officer of the Company setting forth details of such Default or event and the action which the Company proposes to take with respect thereto;
(h) From time to time, such other information as to the business and financial condition of the Company and the Subsidiaries and their compliance with the Loan Documents as any Agent, or any Lender through the Administrative Agent, may reasonably request; and
(i) Promptly following a request therefor, all documentation and other information that a Lender reasonably requests in order to comply with its ongoing
obligations under applicable "know your customer" and anti-money laundering rules and regulations, including the USA Patriot Act.
Information required to be delivered to the Administrative Agent for
distribution to the Lenders pursuant to this Section shall be deemed to
have been so delivered or distributed, as the case may be, (i) on the date
on which such information, or one or more annual or quarterly reports
containing such information, shall have been delivered to the
Administrative Agent and posted by the Administrative Agent on an
IntraLinks or similar website to which the Lenders have been granted access
or (ii) in the case of information referred to in paragraphs (a), (b) and
(c) of this Section, on the date on which the Borrower provides notice to
the Administrative Agent that such information is available (A) on the
website of the Securities and Exchange Commission at http://www.sec.gov or
(B) on the Borrower's website at http://www.waters.com. Information
required to be delivered pursuant to this Section may also be delivered by
electronic communications pursuant to procedures approved by the
Administrative Agent.
Section 5.07. Use of Proceeds and Letters of Credit. Use the proceeds of Borrowings hereunder and the Letters of Credit for the purposes referred to in the recitals to this Agreement, and not for any purpose that would entail a violation of any applicable law or regulation (including, without limitation, Regulations U and X of the Board).
Section 5.08. Guarantee Requirement. Cause the Guarantee Requirement to be satisfied at all times.
ARTICLE VI
Negative Covenants
Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired or terminated and all LC Disbursements have been reimbursed, each of the Company and the European Borrower covenants and agrees with the Lenders that it will not:
Section 6.01. Subsidiary Debt. Permit any Subsidiary that is not a Subsidiary Guarantor to create, incur, assume or permit to exist any Debt, except:
(a) Debt created hereunder;
(b) Debt existing on the date hereof and set forth in Schedule 6.01 and extensions, renewals and replacements of any such Debt that do not increase the outstanding principal amount thereof;
(c) Debt to the Company or any other Subsidiary; and
(d) other Debt; provided that the sum of (without duplication) (i) the
principal amount of all Debt permitted by this clause (d), (ii) the
principal amount of all Debt secured by Liens permitted by Section 6.02 and
(iii) all Attributable Debt in respect of Sale and Leaseback Transactions
(other than Sale and Leaseback Transactions entered into at the time the
property subject thereto is acquired or within 90 days thereafter)
permitted by Section 6.03 does not at any time exceed the greater of
$150,000,000 or 15% of Consolidated Net Tangible Assets.
Section 6.02. Liens Securing Debt. Create, incur, assume or permit to
exist, or permit any Subsidiary to create, incur, assume or permit to exist, any
Lien on any property or asset now owned or hereafter acquired by it securing
Debt unless, after giving effect thereto, the sum of (without duplication) (i)
all Debt secured by all such Liens, (ii) the principal amount of all Debt of
Subsidiaries that are not Subsidiary Guarantors permitted by Section 6.01(d) and
(iii) all Attributable Debt in respect of Sale and Leaseback Transactions (other
than Sale and Leaseback Transactions entered into at the time the property
subject thereto is acquired or within 90 days thereafter) permitted by Section
6.03 does not at any time exceed the greater of $150,000,000 or 15% of
Consolidated Net Tangible Assets. For the purpose of this Section 6.02, Treasury
Stock to the extent constituting Margin Stock shall be deemed not to be an asset
of the Company and its Subsidiaries.
Section 6.03. Sale and Leaseback Transactions. Enter into or be party
to, or permit any Subsidiary to enter into or be party to, any Sale and
Leaseback Transaction (other than any Sale and Leaseback Transaction entered
into at the time the property subject thereto is acquired or within 90 days
thereafter) unless after giving effect thereto the sum of (without duplication)
(i) all Attributable Debt permitted by this Section, (ii) the principal amount
of all Debt of Subsidiaries that are not Subsidiary Guarantors permitted by
Section 6.01(d) and (iii) the principal amount of all Debt secured by Liens
permitted by Section 6.02(i) does not exceed the greater of $150,000,000 or 15%
of Consolidated Net Tangible Assets.
Section 6.04. Merger, Consolidation, Etc. (a) In the case of the Company, merge or consolidate with or into, or transfer or permit the transfer of all or substantially all its consolidated assets to, any Person (including by means of one or more mergers or consolidations of or transfers of assets by Subsidiaries), except that the Company may merge or consolidate with any US Corporation if (i) the Company shall be the surviving corporation in such merger or consolidation, (ii) immediately after giving effect thereto no Default shall have occurred and be continuing and (iii) the Company shall be in compliance with the covenants set forth in Sections 6.07 and 6.08 as of and for the most recently ended period of four fiscal quarters for which financial statements shall have been delivered pursuant to Section 5.06, giving pro forma effect to such merger or consolidation and any related incurrence of Debt as if they had occurred at the beginning of such period, and the Administrative Agent shall have received a certificate of the chief financial officer of the Company setting forth computations demonstrating such compliance.
(b) In the case of any Material Subsidiary, merge or consolidate with
or into, or transfer all or substantially all its assets to, any Person, except
that (i) any Material Subsidiary may merge into or transfer all or substantially
all its assets to the Company, (ii) any Material Subsidiary may merge or
consolidate with or transfer all or substantially all its assets to any
Subsidiary; provided that if either constituent corporation in such merger or
consolidation, or the transferor of such assets, shall be a Subsidiary
Guarantor, then the surviving or resulting corporation or the transferee of such
assets, as the case may be, must be or at the time of such transaction become a
Subsidiary Guarantor and (iii) so long as, at the time of and immediately after
giving effect to such transaction, no Default shall have occurred and be
continuing, any Material Subsidiary may merge or consolidate with or transfer
all or substantially all its assets to any Person other than the Company or a
Subsidiary so long as such transaction would not be prohibited by paragraph
(a)(iii) above. Notwithstanding the foregoing, nothing in this paragraph shall
(a) so long as, at the time of and immediately after giving effect to such
transaction, no Event of Default shall have occurred and be continuing, prohibit
the Company or any Subsidiary from (i) transferring any assets of such Person to
acquire Foreign Subsidiaries, (ii) making capital or working capital
contributions to Foreign Subsidiaries in the ordinary course of business, or
(iii) selling or otherwise disposing of assets to a Foreign Subsidiary on
arm's-length terms (as determined in good faith by the Company or the applicable
Subsidiary) or (b) require any Foreign Subsidiary to become a Subsidiary
Guarantor hereunder.
(c) In the case of the Company, permit any Domestic Subsidiary to become a subsidiary of a Foreign Subsidiary; provided that nothing in this paragraph shall prevent the Company from acquiring, directly or indirectly, any Person that at the time of and immediately after giving effect to such acquisition would constitute a Foreign Subsidiary and would own any Domestic Subsidiary not acquired by it in contemplation of such acquisition.
For purposes of this Section 6.04, Treasury Stock to the extent constituting Margin Stock shall be deemed not to be an asset of the Company.
Section 6.05. Change in Business. Fail to be engaged in the business conducted by the Company and the Subsidiaries on the date hereof to an extent such that the character of the business conducted by the Company and the Subsidiaries on the date hereof, taken as a whole, shall be materially changed.
Section 6.06. Certain Restrictive Agreements. Enter into, or permit
any Subsidiary to enter into, any contract or other agreement that would limit
the ability of any Subsidiary to pay dividends or make loans or advances to, or
to repay loans or advances from, the Company or any other Subsidiary, other than
(i) customary non-assignment provisions in any lease or sale agreement relating
to the assets that are the subject of such lease or sale agreement, (ii) any
restriction binding on a Person acquired by the Company at the time of such
acquisition, which restriction is applicable solely to the Person so acquired
and its subsidiaries and was not entered into in contemplation of such
acquisition and (iii) in connection with any secured Debt permitted under
Section 6.02, customary restrictions on the transfer of the collateral securing
such Debt.
Section 6.07. Leverage Ratio. Permit the Leverage Ratio as of the end of any fiscal quarter to exceed 3.25:1.00.
Section 6.08. Interest Coverage Ratio. Permit the Interest Coverage Ratio as of the end of any fiscal quarter for any period of four consecutive fiscal quarters to be less than 3.50:1.00.
ARTICLE VII
Events of Default
If any of the following events ("Events of Default") shall occur and be continuing:
(a) Any Borrower shall fail to pay (i) any amount of principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when due hereunder or (ii) any interest, fee or other amount due hereunder and such default shall continue for five days; or
(b) Any representation or warranty made or deemed made by the Company or any other Loan Party (or any of their respective officers) in connection with this Agreement or any other Loan Document shall prove to have been incorrect in any material respect when made or deemed made; provided, however, that no Event of Default shall be deemed to exist by reason of the incorrectness of any representation or warranty after such incorrectness shall have been cured (other than by disclosure, which shall not be deemed to cure any breach of a representation or warranty); or
(c) The Company or the European Borrower shall fail to maintain its
corporate, limited liability company or partnership existence as required by
Section 5.02, or the Company shall fail for five Business Days to comply with
Section 5.06(g), or the Company or any Subsidiary shall fail to perform or
observe any term, covenant or agreement contained in Section 5.07 or Article VI
of this Agreement on its part to be performed or observed; or
(d) The Company or any Subsidiary shall (i) fail to perform or observe any other term, covenant or agreement contained in this Agreement or any other Loan Document on its part to be performed or observed (other than those failures or breaches referred to in paragraphs (a), (b) and (c) above) and any such failure shall remain unremedied for 30 days after written notice thereof has been given to the Company by the Administrative Agent or the Required Lenders; or
(e) The Company or any Subsidiary shall fail to pay any amount of principal of, interest on or premium with respect to, Material Debt (other than the Loans) when due (whether at scheduled maturity or by required prepayment, acceleration, demand or otherwise) and such failure shall continue beyond the applicable grace period, if any, specified in the agreement or instrument governing such Debt, or any other event shall occur or condition shall exist with respect to Material Debt (other than the Loans) of
the Company or such Subsidiary if the effect of such other event or condition is to cause, or to permit the holder or holders of such debt (or any trustee or agent on their behalf) to cause, such Material Debt to become due, or to require such Material Debt to be prepaid or repurchased, prior to the stated maturity thereof; or
(f) The Company or any Subsidiary shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally; or
(g) The Company or any Subsidiary shall make a general assignment for
the benefit of creditors; or any proceeding shall be instituted by or against
the Company or such Subsidiary seeking to adjudicate it a bankrupt or insolvent,
or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debt under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee or other
similar official for it or for any substantial part of its property; or the
Company or any such Subsidiary shall take corporate action to authorize any of
the actions set forth above in this paragraph (f); provided that, in the case of
any such proceeding filed or commenced against the Company or any Subsidiary,
such event shall not constitute an "Event of Default" hereunder unless either
(i) the same shall have remained undismissed or unstayed for a period of 60
days, (ii) an order for relief shall have been entered against the Company or
such Subsidiary under the federal bankruptcy laws as now or hereafter in effect
or (iii) the Company or such Subsidiary shall have taken corporate action
consenting to, approving or acquiescing in the commencement or maintenance of
such proceeding; or
(h) Any judgment or judgments for the payment of money in excess of $20,000,000 in the aggregate for all such judgments shall be rendered against the Company or one or more Subsidiaries and (i) enforcement proceedings shall have been commenced by any creditor upon such judgments or (ii) there shall be any period of 10 consecutive days during which stays of enforcement of such judgments, by reason of pending appeals or otherwise, shall not be in effect;
(i) Either (i) the PBGC shall terminate any single-employer Plan (as defined in Section 4001(b)(2) of ERISA) that provides benefits for employees of the Company or any Subsidiary and such plan shall have an Unfunded Liability in an amount in excess of $20,000,000 at such time or (ii) Withdrawal Liability shall be assessed against the Company or any Subsidiary in connection with any Multiemployer Plan (whether under Section 4203 or Section 4205 of ERISA) and such Withdrawal Liability shall be an amount in excess of $20,000,000 or
(j) the guarantee of any Subsidiary Guarantor under the Subsidiary Guarantee Agreement or the Company's guarantee under Article X shall not be (or shall be asserted by the Company or any Subsidiary Guarantor not to be) valid or in full force and effect; or
(k) a Change of Control shall have occurred.
then, and in any such event, the Administrative Agent shall at the request, or may with the consent, of the Required Lenders, by notice to the Company, (i) declare the obligation of each Lender to make Loans and of the Issuing Bank to issue Letters of Credit hereunder to be terminated, whereupon the same shall forthwith terminate and/or (ii) declare the Loans, all interest accrued and unpaid thereon and all other amounts outstanding or accrued under this Agreement to be forthwith due and payable, whereupon the Loans, all such accrued interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrowers. In the event of the occurrence of an Event of Default under clause (g) of this Article VII, (A) the obligation of each Lender to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall automatically be terminated and (B) the Loans, all interest accrued and unpaid thereon and all other amounts outstanding or accrued under this Agreement shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by each Borrower.
ARTICLE VIII
The Agents
In order to expedite the transactions contemplated by this Agreement, the Persons named in the heading of this Agreement are hereby appointed to act as Administrative Agent and London Agent on behalf of the Lenders and the Issuing Bank. Each of the Lenders, each assignee of any Lender and the Issuing Bank hereby irrevocably authorizes the Agents to take such actions on their behalf and to exercise such powers as are delegated to the Agents by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto. The Agents are hereby expressly authorized by the Lenders and the Issuing Bank, without hereby limiting any implied authority, (a) to receive on behalf of the Lenders and the Issuing Bank all payments of principal of and interest on the Loans and all other amounts due to the Lenders or the Issuing Bank hereunder, and promptly to distribute to each Lender or the Issuing Bank its proper share of each payment so received; (b) to give notice on behalf of each of the Lenders to the Company of any Event of Default of which the Administrative Agent has actual knowledge acquired in connection with its agency hereunder; and (c) to distribute to each Lender copies of all notices, financial statements and other materials delivered by the Company or any other Loan Party pursuant to this Agreement or the other Loan Documents as received by the Administrative Agent.
With respect to the Loans made by it hereunder, each Agent in its individual capacity and not as Agent shall have the same rights and powers as any other Lender and may exercise the same as though it were not an Agent, and the Agents and their Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Company or any Subsidiary or other Affiliate thereof as if it were not an Agent.
The Agents shall not have any duties or obligations except those expressly set forth in the Loan Documents. Without limiting the generality of the foregoing, (a) no Agent shall be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) no Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that such Agent is required to exercise upon receipt of notice in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 11.02), and (c) except as expressly set forth in the Loan Documents, no Agent shall have any duty to disclose, and no Agent shall be liable for the failure to disclose, any information relating to the Company or any of its Subsidiaries that is communicated to or obtained by the institution serving as Agent or any of its Affiliates in any capacity. No Agent shall be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 11.02) or in the absence of its own gross negligence or wilful misconduct. No Agent shall be deemed to have knowledge of any Default unless and until written notice thereof is given to such Agent by a Borrower, and no Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to such Agent.
Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. Each Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. Each Agent may consult with legal counsel (who may be counsel for any Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
Each Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by such Agent. Each Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Agent.
Subject to the appointment and acceptance of a successor Agent as provided in this paragraph, any Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Company. Upon any such resignation, the Required Lenders shall have the right, in consultation with the Company, to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Agent gives notice of its resignation, then the retiring Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder. After the Agent's resignation hereunder, the provisions of this Article and Section 11.03 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Agent.
Each Lender acknowledges that it has, independently and without reliance upon the Agents or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Agents or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or related agreement or any document furnished hereunder or thereunder.
Each Lender hereby acknowledges that each institution named on the cover page of this Agreement as Co-Syndication Agent has no duties or responsibilities hereunder other than, in the case of a Co-Syndication Agent that is a Lender, in its capacity as a Lender.
ARTICLE IX
Collection Allocation Mechanism
Section 9.01. CAM Exchange. (a) On the CAM Exchange Date, (i) the Commitments shall automatically and without further act be terminated as provided in Article VII and (ii) the Lenders shall automatically and without further act be deemed to have exchanged interests in the Specified Obligations such that, in lieu of the interests of each Lender in the particular Specified Obligations that it shall own as of such date and prior to the CAM Exchange, such Lender shall own an interest equal to such Lender's CAM Percentage in all the Specified Obligations. Each Lender, each person acquiring a participation from any Lender as contemplated by Section 11.02, the Company and the European Borrower hereby consents and agrees to the CAM Exchange. Each of the Company, the European Borrower and the Lenders agrees from time to time to execute
and deliver to the Agents all such promissory notes and other instruments and documents as the Administrative Agent shall reasonably request to evidence and confirm the respective interests and obligations of the Lenders after giving effect to the CAM Exchange, and each Lender agrees to surrender any promissory notes originally received by it hereunder to the Administrative Agent against delivery of any promissory notes so executed and delivered; provided that the failure of the Company or the European Borrower to execute or deliver or of any Lender to accept any such promissory note, instrument or document shall not affect the validity or effectiveness of the CAM Exchange.
(b) As a result of the CAM Exchange, on and after the CAM Exchange
Date, (i) each payment received by an Agent pursuant to any Loan Document in
respect of the Specified Obligations shall be distributed to the Lenders pro
rata in accordance with their respective CAM Percentages (to be redetermined as
of each such date of payment or distribution to the extent required by paragraph
(c) below) and (ii) Section 2.17(e) shall not apply with respect to any Taxes
required to be withheld or deducted by a Borrower from or in respect of payments
hereunder to any Lender or Administrative Agent that exceed the Taxes such
Borrower would have been required to withhold or deduct from or in respect of
payments to such Lender or Agent had such CAM Exchange not occurred.
(c) In the event that, on or after the CAM Exchange Date, the aggregate amount of the Specified Obligations shall change as a result of the making of an LC Disbursement by the Issuing Bank that is not reimbursed by a Borrower, then (i) each US Tranche Lender (determined without giving effect to the CAM Exchange) shall, in accordance with Section 2.05(d), promptly purchase from the applicable Issuing Bank a participation in such LC Disbursement in the amount of such US Tranche Lender's applicable US Tranche Percentage of such LC Disbursement (without giving effect to the CAM Exchange), (ii) the Administrative Agent shall redetermine the CAM Percentages after giving effect to such LC Disbursement and the purchase of participations therein by the applicable US Tranche Lenders, and (iii) in the event distributions shall have been made in accordance with clause (i) of paragraph (b) above, the Lenders shall make such payments to one another as shall be necessary in order that the amounts received by them shall be equal to the amounts they would have received had each LC Disbursement been outstanding immediately prior to the CAM Exchange. Each such redetermination shall be binding on each of the Borrowers and Lenders and their successors and assigns and shall be conclusive absent manifest error.
ARTICLE X
Guarantee
In order to induce the Lenders to extend credit to the European Borrower hereunder, the Company hereby irrevocably and unconditionally guarantees, as a primary obligor and not merely as a surety, the payment when and as due of the Obligations of the European Borrower. The Company further agrees that the due and punctual payment of
such Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee hereunder notwithstanding any such extension or renewal of any such Obligation.
The Company waives presentment to, demand of payment from and protest to the European Borrower of any of the Obligations, and also waives notice of acceptance of its obligations and notice of protest for nonpayment. The obligations of the Company under this Article X shall not be affected by (a) the failure of any Agent or Lender to assert any claim or demand or to enforce any right or remedy against any Loan Party under the provisions of this Agreement, any other Loan Document or otherwise; (b) any extension or renewal of any of the Obligations; (c) any rescission, waiver, amendment or modification of, or release from, any of the terms or provisions of this Agreement, or any other Loan Document or agreement; (d) any default, failure or delay, wilful or otherwise, in the performance of any of the Obligations; or (e) any other act, circumstance, omission or delay to do any other act which may or might in any manner or to any extent vary the risk of the Company or otherwise operate as a discharge of or defense available to a guarantor as a matter of law or equity or which would impair or eliminate any right of the Company to subrogation.
The Company further agrees that its agreement under this Article X constitutes a guarantee of payment when due (whether or not any bankruptcy or similar proceeding shall have stayed the accrual or collection of any of the Obligations or operated as a discharge thereof) and not merely of collection, and waives any right to require that any resort be had by any Agent or Lender to any balance of any deposit account or credit on the books of any Agent or Lender in favor of any Borrower or any other Person.
The obligations of the Company under this Article X shall not be subject to any reduction, limitation, impairment or termination for any reason, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality or unenforceability of any of the Obligations, any impossibility in the performance of any of the Obligations or otherwise.
The Company further agrees that its obligations under this Article X shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by any Agent or Lender upon the bankruptcy or reorganization of any Borrower or otherwise.
In furtherance of the foregoing and not in limitation of any other right which any Agent or Lender may have at law or in equity against the Company by virtue hereof, upon the failure of the European Borrower to pay any Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, the Company hereby promises to and will, upon receipt of written demand by any Agent or Lender, forthwith pay, or cause to be paid, to the applicable Agent or Lender in cash an amount equal to the unpaid principal amount of such Obligation then due, together with accrued and unpaid interest thereon. The Company further agrees that if payment in respect of any Obligation shall be due in a currency other than US Dollars
and/or at a place of payment other than New York and if, by reason of any Change in Law, disruption of currency or foreign exchange markets, war or civil disturbance or other event, payment of such Obligation in such currency or at such place of payment shall be impossible or, in the reasonable judgment of any Agent or Lender, not consistent with the protection of its rights or interests, then, at the election of the Administrative Agent, the Company shall make payment of such Obligation in US Dollars (based upon the applicable Exchange Rate in effect on the date of payment) and/or in New York, and shall indemnify each Agent and Lender against any losses or reasonable out-of-pocket expenses that it shall sustain as a result of such alternative payment.
Upon payment by the Company of any sums as provided above, all rights of the Company against the European Borrower arising as a result thereof by way of right of subrogation or otherwise shall in all respects be subordinated and junior in right of payment to the prior indefeasible payment in full in cash of all the Obligations owed by the European Borrower to the Agents and the Lenders.
Nothing shall discharge or satisfy the liability of the Company hereunder except the full performance and indefeasible payment in full in cash of the Obligations.
ARTICLE XI
Miscellaneous
Section 11.01. Notices. Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:
(a) if to any Borrower, to 34 Maples Street, Milford, Massachusetts, 01757, Attention of John Lynch (Telecopy No. (508) 482-2249);
(b) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., 131 South Dearborn, 6th floor, Mailcode: IL1-0010, Chicago, IL 60670-0010, Attention of Claudia Kech(Telecopy No. (312) 385-7096, Telephone No. (312) 385-7041);
(c) if to the London Agent, to it at J.P. Morgan Europe Limited, 125 London Wall, Floor 9, London EC2Y5AJ, Attention of Mark Satchel (Telecopy No. 44-207-7772360, Telephone No. 44-207-7771166); with a copy to the Administrative Agent as provided in paragraph (b) above;
(d) if to the Issuing Bank, to it at the JPMorgan Chase Bank, N.A., 420 West Van Buren, Floor 2, Chicago, IL 60606, Attention of Fiore Petrassi (Telecopy No. (312) 954-5303, Telephone No. (312) 954-1933); and
(e) if to any Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.
Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt.
Section 11.02. Waivers; Amendments. (a) No failure or delay by any Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Agents, the Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether any Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.
(b) None of this Agreement, or any other Loan Document or any
provision hereof or thereof may be waived, amended or modified except pursuant
to an agreement or agreements in writing entered into by the Company and the
Required Lenders or by the Company and the Administrative Agent with the consent
of the Required Lenders or, in the case of any other Loan Document, pursuant to
an agreement or agreements in writing entered into by the Administrative Agent
and the Loan Party or Loan Parties that are parties thereto, in each case with
the consent of the Required Lenders; provided that no such agreement shall (i)
increase any Commitment of any Lender without the written consent of such
Lender, (ii) reduce the principal amount of any Loan, LC Disbursement or
reimbursement obligation of any Borrower with respect to any Letter of Credit
("Reimbursement Obligation") or reduce the rate of interest thereon, or reduce
any fees payable hereunder, without the written consent of each Lender adversely
affected thereby, (iii) postpone the date of any scheduled payment of the
principal amount of any Loan, LC Disbursement or Reimbursement Obligation, or
any interest thereon, or any fees payable hereunder, or reduce the amount of,
waive or excuse any such payment, or postpone the scheduled date of expiration
of any Commitment, without the written consent of each Lender affected thereby,
(iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata
sharing of payments required thereby without the written consent of each Lender,
or alter the manner in which payments or prepayments of principal, interest or
other amounts hereunder shall be applied as among Lenders or Types of Loans
without the written consent of each Lender, (v) change any of the provisions of
this Section or the definition of "Required Lenders" or any other provision of
any Loan Document specifying the number or percentage of Lenders (or
Lenders of any Class) required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender (or each Lender of such Class, as the case may be), (vi) release the Company or all or substantially all the Subsidiary Guarantors from, or limit or condition, its or their obligations under Article X or the Subsidiary Guarantee Agreement, or change the definition of Guarantee Requirement without the written consent of each Lender, (vii) change any provisions of Article IX or any provision of this Agreement that requires action by each Lender without the written consent of each Lender, or (viii) change any provisions of any Loan Document in a manner that by its terms adversely affects the rights in respect of payments due to Lenders holding Loans of any Class differently than those of Lenders holding Loans of any other Class without the written consent of Lenders holding a majority in interest of the outstanding Loans and unused Commitments of each adversely affected Class; provided further that (A) no such agreement shall amend, modify or otherwise affect the rights or duties of any Agent or the Issuing Bank hereunder or under any other Loan Document without the prior written consent of such Agent or the Issuing Bank, as the case may be, and (B) any waiver, amendment or modification of this Agreement that by its terms affects the rights or duties under this Agreement of the Lenders of one Class (but not the Lenders of any other Class) may be effected by an agreement or agreements in writing entered into by the Company and requisite percentage in interest of the affected Class of Lenders.
Section 11.03. Expenses; Indemnity; Damage Waiver. (a) The Company shall pay (i) all reasonable out-of-pocket expenses incurred by the Agents and their Affiliates, including the reasonable fees, charges and disbursements of counsel for the Agents, in connection with the syndication of the credit facilities provided for herein, the preparation and administration of this Agreement or the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable out-of-pocket expenses (including reasonable fees, charges and disbursements of any counsel) incurred by any Agent, and, following and during the continuance of an Event of Default, the Issuing Bank and/or any Lender, in connection with the enforcement or protection of its rights in connection with any Loan Document, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.
The Company shall indemnify each Agent, the Issuing Bank and each Lender and each Related Party of any of the foregoing Persons (each such Person being called an "Indemnitee") against, and hold each Indemnitee harmless from, any and all losses, liabilities and reasonable out-of-pocket costs or expenses, including the reasonable fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) any transaction or proposed transaction (whether or not consummated) in which any proceeds of any borrowing hereunder are applied or proposed to be applied, directly or indirectly,
by the Company or any Subsidiary, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), or (iii) the execution, delivery or performance by the Company and the Subsidiaries of the Loan Documents, or any actions or omissions of the Company or any Subsidiary in connection therewith (and, in the case of any such loss, liability, cost or expense arising out of any litigation, investigation or other proceeding, regardless of whether such proceeding shall have been commenced by the Company, any Subsidiary of the Company or any other Person or whether any Indemnitee shall be a party thereto); provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, liabilities, costs or expenses are determined by a court of competent jurisdiction by final and unappealable judgment to have resulted from the gross negligence or wilful misconduct of such Indemnitee or from the breach of such Indemnitee of its agreements hereunder.
(b) To the extent that the Company fails to pay any amount required to be paid by it to any Agent or the Issuing Bank or any of their Related Parties under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to such Agent or the Issuing Bank, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed loss, liability, cost or expense, as the case may be, was incurred by or asserted against such Agent or the Issuing Bank (or such Related Party) in its capacity as such. For purposes hereof, a Lender's "pro rata share" shall be determined based upon its share of the sum (without duplication) of the total Exposures and unused Commitments at the time.
(c) To the extent permitted by applicable law, no Borrower shall assert, and each Borrower hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.
(d) All amounts due under this Section shall be payable within 15 Business Days after receipt by the Company of a reasonably detailed invoice therefor.
Section 11.04. Successors and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that no Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by any Borrower without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, the Related Parties of each of the Agents, the Issuing Bank and the
Lenders (including any Affiliate of the Issuing Bank that issues any Letter of Credit)) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b) Any Lender may assign to one or more assignees all or a portion of
its rights and obligations under this Agreement (including all or a portion of
its Commitments and the Loans or other amounts at the time owing to it);
provided that (i) except in the case of an assignment to a Lender the
Administrative Agent (and in the case of an assignment of all or a portion of a
US Tranche Commitment or any Lender's obligations in respect of its LC Exposure,
the Issuing Bank) and, except (A) in the case of an assignment to a Lender, an
Affiliate of a Lender or a Related Fund of any Lender or (B) if an Event of
Default shall have occurred and be continuing, the Company must give their prior
written consent to such assignment (which consent shall not be unreasonably
withheld), (ii) unless an event of default has occurred and is continuing,
except in the case of an assignment to a Lender, an Affiliate of a Lender or a
Related Fund of any Lender or an assignment of the entire remaining amount of
the assigning Lender's Commitments and outstanding Loans, the amount of the
Commitments and outstanding Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect
to such assignment is delivered to the Administrative Agent) shall not be less
than $10,000,000 unless each of the Company and the Administrative Agent
otherwise consent, (iii) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance, together with
a processing and recordation fee of $3,500, and (iv) the assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire. Subject to acceptance and recording thereof pursuant to paragraph
(d) of this Section, from and after the effective date specified in each
Assignment and Acceptance the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Acceptance, have
the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all of the assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
2.15, 2.16, 2.17 and 11.03). At the time of any assignment, the assignee shall
provide to the Company the documentation described in Section 2.17(e). Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (e) of this Section.
(c) The Administrative Agent, acting for this purpose as an agent of each Borrower, shall maintain at one of its offices in The City of New York a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the "Register"). The entries in the Register shall be conclusive, and the Borrowers, the Administrative Agent, the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Company, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice.
(d) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.
(e) Any Lender may, without the consent of any Borrower or the Administrative Agent or the Issuing Bank, sell participations to one or more banks or other entities (a "Participant") in all or a portion of such Lender's rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrowers, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that (A) such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement and (B) such Participant shall be bound by the provisions of Section 11.12 as if such Participant were a Lender; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in clause (i), (ii), (iii) or (vi) of the first proviso to Section 11.02(b) that affects such Participant. Subject to paragraph (f) of this Section, each Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 11.08 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section.
(f) A Participant shall not be entitled to receive any greater payment
under Section 2.15 or 2.17 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Company's
prior written consent. A Participant shall not be entitled to the benefits of
Section 2.17 unless the Company is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrowers, to
comply with Section 2.17(e) as though it were a Lender. A Participant shall
receive all information delivered under or in connection with this Agreement
directly from the Lender from which it shall have purchased its participation,
and the Borrowers shall not have any obligation to furnish any such information
directly to any Participant.
(g) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or, in the case of a Lender that is an investment fund, to the trustee under the indenture to which such fund is a party, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
Section 11.05. Survival. All covenants, agreements, representations and warranties made by the Loan Parties herein or in any other Loan Document or in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto or thereto and shall survive the execution and delivery of this Agreement and any other Loan Document and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that any Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement or any other Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of Sections 2.15, 2.16, 2.17, 11.03 and 11.12 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any other Loan Document or any provision hereof or thereof. Provided, however, that the provisions of Section 11.12 shall expire two years after the later of (i) the repayment of the Loans and the expiration or termination of the Letters of Credit and the Commitments and (ii) the termination of this Agreement.
Section 11.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.
Section 11.07. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
Section 11.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final and in whatever currency denominated) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of any Borrower against any of and all the obligations of such Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.
Section 11.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed in accordance with and governed by the law of the State of New York.
(b) Each Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement against any Borrower or its properties in the courts of any jurisdiction.
(c) Each Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 11.01. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
Section 11.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
Section 11.11. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.
Section 11.12. Confidentiality. Each Agent, the Issuing Bank and each Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates' directors, officers, employees and agents, including accountants, legal counsel and other advisors, to Related Funds' directors and officers and to any direct or indirect contractual counterparty in swap agreements (it being understood that each Person to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) to the extent required or advisable in the judgment of counsel in connection with any suit, action or proceeding relating to the enforcement of rights of the Agents or the Lenders against any of the Borrowers under this Agreement or any other Loan Document, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement, (g) with the consent of the Company or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section of which such Agent or Lender is aware or (ii) becomes available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source other than the Company other than as a result of a breach of this Section of which such Agent or Lender is aware. For the purposes of this Section, "Information" means all information received from the Company relating to the Company or its
business, other than any such information that is available to the
Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis
prior to disclosure by the Company other than as a result of a breach of this
Section of which such Agent or Lender is aware. Any Person required to maintain
the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.
Section 11.13. Conversion of Currencies. (a) If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing hereunder in one currency into another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures in the relevant jurisdiction the first currency could be purchased with such other currency on the Business Day immediately preceding the day on which final judgment is given.
(b) The obligations of each Borrower in respect of any sum due to any party hereto or any holder of the obligations owing hereunder (the "Applicable Creditor") shall, notwithstanding any judgment in a currency (the "Judgment Currency") other than the currency in which such sum is stated to be due hereunder (the "Agreement Currency"), be discharged only to the extent that, on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally due to the Applicable Creditor in the Agreement Currency, such Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss. The obligations of the Borrowers contained in this Section 11.13 shall survive the termination of this Agreement and the payment of all other amounts owing hereunder.
Section 11.14. Release of Subsidiary Guarantors. Notwithstanding any contrary provision herein or in any other Loan Document, if the Company shall request the release under the Subsidiary Guarantee Agreement of any Subsidiary to be sold or otherwise disposed of (including through the sale or disposition of any Subsidiary owning any such Subsidiary) to a Person other than the Company or a Subsidiary in a transaction permitted under the terms of this Agreement and shall deliver to the Administrative Agent a certificate to the effect that such sale or other disposition will comply with the terms of this Agreement, the Administrative Agent, if satisfied that the applicable certificate is correct, shall, without the consent of any Lender, execute and deliver all such instruments, releases or other agreements, and take all such further actions, as shall be necessary to effectuate the release of such Subsidiary at the time of or at any time after the completion of such sale or other disposition.
Section 11.15. USA Patriot Act. Each Lender hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record information that identifies the Borrowers, which information
includes the name and address of each Borrower and other information that will allow such Lender to identify each Borrower in accordance with the USA Patriot Act.
[signatures follow]
SIGNATURE PAGE
TO THE WATERS CORPORATION
CREDIT AGREEMENT
DATED AS OF JANUARY 11, 2007
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.
WATERS CORPORATION,
by /s/ John A. Ornell -------------------------------------- Name: John A. Ornell Title: Vice President Finance and Administration and Chief Financial Officer |
Present when the common seal of WATERS
TECHNOLOGIES IRELAND LIMITED was
affixed hereto:
by /s/ John A. Ornell -------------------------------------- Name: John A. Ornell Title: Director by /s/ Lawrence Walsh -------------------------------------- Name: Lawrence Walsh Title: Director |
JPMORGAN CHASE BANK, NA., individually and
as Administrative Agent, Issuing Bank and
Swingline Lender,
by /s/ D. Scott Farquhar -------------------------------------- Name: D. Scott Farquhar Title: Vice President |
J.P. MORGAN EUROPE LIMITED, as London Agent,
by /s/ M. Graves -------------------------------------- Name: M. Graves Title: Associate |
ABN AMRO BANK N.V.,
by /s/ Alexander M. Blodi -------------------------------------- Name: Alexander M. Blodi Title: Managing Director by /s/ Nick Zorin -------------------------------------- Name: Nick Zorin Title: Assistant Vice President |
LENDER: Allied Irish Banks Plc.
by: /s/ Ray Alcock -------------------------------- Name: Ray Alcock Title: Manager by: /s/ Michael Doyle -------------------------------- Name: Michael Doyle Title: Senior Manager |
LENDER: Bank of America, N.A.
by: /s/ Amie L. Edwards ------------------------------- Name: Amie L. Edwards Title: Vice President |
LENDER: The Governor and Company of the Bank of Ireland
by: /s/ Fergus Woods ------------------------------- Name: Fergus Woods Title: Manager by: /s/ Fergus McDonald ------------------------------- Name: Fergus McDonald Title: Director |
LENDER: The Bank of New York
by: /s/ Jonathan Rollins ------------------------------- Name: Jonathan Rollins Title: Vice President |
LENDER: Bank of Tokyo-Mitsubishi UFJ Trust Company
by: /s/ Lillian Kim ------------------------------- Name: Lillian Kim Title: Vice President |
LENDER: Barclays Bank Plc.
by: /s/ Nicholas A. Bell ------------------------------- Name: Nicholas A. Bell Title: Director |
LENDER: Chang Hwa Commercial Bank, Ltd.,
New York Branch
by: /s/ Jim C. Y. Chen ------------------------------- Name: Jim C. Y. Chen Title: VP & General Manager |
LENDER: Citizens Bank of Massachusetts
by: /s/ Li-Mei Yang ------------------------------- Name: Li-Mei Yang Title: Vice President |
LENDER: Deutsche Bank AG New York Branch
by: /s/ Frederick W. Laird ------------------------------- Name: Frederick W. Laird Title: Managing Director by: /s/ Ming K. Chu ------------------------------- Name: Ming K. Chu Title: Vice President |
LENDER: Fortis Capital Corp.
by: /s/ John W. Deegan ------------------------------ Name: John W. Deegan Title: Senior Vice President by: /s/ Steven Silverstein ------------------------------ Name: Steven Silverstein Title: Vice President |
LENDER: HSBC Bank USA, National Association
by: /s/ Kenneth V. McGraime ------------------------------ Name: Kenneth V. McGraime Title: SVP, Commercial Executive |
LENDER: KBC Bank N.V.
by: /s/ Robert Surdam, Jr. ------------------------------ Name: Robert Surdam, Jr. Title: Vice President by: /s/ Robert Snauffer ------------------------------ Name: Robert Snauffer Title: First Vice President |
LENDER: Key Bank N.A.
by: /s/ J.T. Taylor ----------------------------- Name: J.T. Taylor Title: Senior Vice President |
LENDER: Mizuho Corporate Bank, USA
by: /s/ Raymond Ventura ----------------------------- Name: Raymond Ventura Title: Senior Vice President |
LENDER: PNC Bank, National Association
by: /s/ Michael Richards ----------------------------- Name: Michael Richards Title: Senior Vice President |
LENDER: SunTrust Bank
by: /s/ John W. Teasley ----------------------------- Name: John W. Teasley Title: Director |
LENDER: UBS Loan Finance LLC
by: /s/ Richard L. Tawow ----------------------------- Name: Richard L. Tawow Title: Director Banking Products Services, US by: /s/ Irja H. Otsa ----------------------------- Name: Irja H. Otsa Title: Associate Director Banking Products Services, US |
EXHIBIT 10.48
THIRD AMENDMENT
TO THE
WATERS CORPORATION 2003 EQUITY INCENTIVE PLAN
WHEREAS, Waters Corporation (the "Corporation") has established and maintains an equity incentive plan for the benefit of certain employees, consultants and directors of the Corporation entitled the Waters Corporation 2003 Equity Incentive Plan (the "Plan"); and
WHEREAS, the Corporation desires to amend the Plan;
NOW THEREFORE, in accordance with the power of amendment contained in
Section 13 of the Plan, the Plan is hereby amended, effective as of December 13,
2006, as follows:
1. Section 2.1 of the Plan ("Accelerate, Accelerated and Acceleration") is hereby amended to read in its entirety as follows:
"2.1. Accelerate, Accelerated, and Acceleration, when used with respect to an Option or Stock Appreciation Right, means that as of the time of reference the Option or Stock Appreciation Right will become exercisable with respect to some or all of the shares of Common Stock for which it was not then otherwise exercisable by its terms, and, when used with respect to Restricted Stock or Restricted Stock Units, means that the Risk of Forfeiture otherwise applicable to the Stock shall expire with respect to some or all of the shares of Restricted Stock or Units then still otherwise subject to the Risk of Forfeiture."
2. Section 2.4 of the Plan ("Award") is hereby amended to read in its entirety as follows:
"2.4. Award means any grant or sale pursuant to the Plan of Options, Restricted Stock, Stock Appreciation Rights, Restricted Stock Units or Stock Grants."
3. Section 2 of the Plan ("Definitions") is hereby amended by
renumbering Sections 2.21 through 2.26 as Sections 2.22 and 2.27,
respectively, and by adding a new Section 2.21 immediately following
Section 2.20 to read in its entirety as follows:
"2.21. Restricted Stock Units means rights to receive shares of Stock at the close of a Restriction Period, subject to a Risk of Forfeiture."
4. Section 2.22 of the Plan ("Restriction Period"), as renumbered in accordance with paragraph 3 above, is hereby amended to read in its entirety as follows:
"2.22. Restriction Period means the period of time, established by the Committee in connection with an Award of Restricted Stock or Restricted Stock Units, during which the shares of Restricted Stock or Units are subject to a Risk of Forfeiture described in the applicable Award Agreement."
5. Section 2.23 of the Plan ("Risk of Forfeiture"), as renumbered in accordance with paragraph 3 above, is hereby amended to read in its entirety as follows:
"2.23. Risk of Forfeiture means a limitation on the right of the Participant to retain Restricted Stock or Restricted Stock Units, including a right in the Company to reacquire the Shares at less than their then Market Value, arising because of the occurrence or non-occurrence of specified events or conditions."
6. Section 7 of the Plan ("Specific Terms of Awards") is hereby amended
by renumbering Sections 7.4 and 7.5 as Sections 7.5 and 7.6,
respectively, and by adding a new Section 7.4 immediately following
Section 7.3 to read in its entirety as follows:
"7.4. Restricted Stock Units.
"(a) Character. Each Restricted Stock Unit shall entitle the recipient to a share of Stock at a close of such Restriction Period as the Committee may establish and subject to a Risk of Forfeiture arising on the basis of such conditions relating to the performance of services, Company or Affiliate performance or otherwise as the Committee may determine and provide for in the applicable Award Agreement. Any such Risk of Forfeiture may be waived or terminated, or the Restriction Period shortened, at any time by the Committee on such basis as it deems appropriate.
"(b) Form and Timing of Payment. Payment of earned Restricted Stock Units shall be made in a single lump sum following the close of the applicable Restriction Period. At the discretion of the Committee, Participants may be entitled to receive payments equivalent to any dividends declared with respect to Stock referenced in grants of Restricted Stock Units but only following the close of the applicable Restriction Period and then only if the underlying Stock shall have been earned. Unless the Committee shall provide otherwise, any such dividend equivalents shall be paid, if at all, without interest or other earnings."
7. Section 8.2 of the Plan ("Change in Control") is hereby amended to read in its entirety as follows:
"8.2. Change in Control. In the event of a Change in Control (including a Change of Control which is an Acquisition), any Restricted Stock Award or Restricted Stock Unit still then subject to a Risk of Forfeiture and any outstanding Option or Stock Appreciation Right not then exercisable in full shall fully vest whether or not the repurchase rights for Restricted Stock are acquired by an acquiring entity and whether or not outstanding Options or Stock Appreciation Rights are assumed by an acquiring entity or replaced by comparable options to purchase shares of the capital stock of a successor or acquiring entity or parent thereof or stock appreciation rights."
8. The Plan is hereby amended by adding at the end thereof a new Attachment B ("Subplan for Stock Grants in France") in the form attached hereto as Exhibit 1.
IN WITNESS WHEREOF, the Corporation has caused this amendment to be signed on its behalf by its duly authorized representative this 13th day of December, 2006.
WATERS CORPORATION
By: /s/ Elizabeth B. Rae ---------------------------- Its: Vice President, Corporate Human Resources |
ATTACHMENT B
SUBPLAN FOR RESTRICTED STOCK UNITS IN FRANCE
This subplan will apply to Participants in the 2003 Equity Incentive Plan (the "2003 Plan") who are or may become subject to French taxation (i.e., income tax and/or social security tax) as a result of Restricted Stock Units awarded under the 2003 Plan.
Section 7.6 of the 2003 Plan authorizes the Committee to modify the terms of any Award under the Plan granted to a Participant who is, at the time of grant or during the term of the Award, resident or primarily employed outside of the United States in any manner deemed by the Committee to be necessary or appropriate in order that the Award shall conform to laws, regulations, and customs of the country in which the Participant is then resident or primarily employed. This subplan has been established to qualify the Restricted Stock Units for the favorable French tax and social security treatment.
The terms of the 2003 Plan, as modified by this subplan for France, constitute the "2003 French Restricted Stock Units Plan", so as to comply with the provisions of Articles L. 225-197-1 to L. 225-197-3 of the French Commercial Code and French employment law. This subplan shall be interpreted and operated with that intention.
This subplan should be read in conjunction with the 2003 Plan and is subject to the terms and conditions of the 2003 Plan except to the extent that the terms and conditions of the 2003 Plan differ from or conflict with the terms set out in this subplan, in which event, the terms set out in this subplan shall prevail.
Under the 2003 French Restricted Stock Units Plan, Participants will be awarded only Restricted Stock Units, as defined below Section 1.1.
An award of Restricted Stock Units shall be subject to the terms of the 2003 French Restricted Stock Units Plan if the Award Agreement evidencing such award refers to the 2003 French Restricted Stock Units Plan.
The terms of this subplan are the terms set out in the rules of the 2003 Plan, modified as follows.
1. DEFINITIONS
Capitalized terms used herein and not defined in this Section 1. shall have the meanings ascribed to such terms in the 2003 Plan.
1.1. RESTRICTED STOCK UNIT
The term "Restricted Stock Unit" shall mean an unsecured and conditional right to receive, free of charge, at the Vesting Date, one share of Stock of the Company for each Restricted Stock Unit
awarded, provided the Presence Condition described section 9, and any other condition which may be set forth in the applicable Award Agreement, is satisfied on the Vesting Date.
1.2. VESTING DATE
The term "Vesting Date" shall mean the date on which the Presence Condition, and any other condition which may be set forth in the applicable Award Agreement, must be satisfied. This date is also the date on which, provided that the condition(s) is (are) satisfied, the Company Stock underlying the Restricted Stock Unit shall be delivered to the Participant.
1.3. EMPLOYEE
The term "Employee" shall mean a current salaried employee, as defined by French labor law.
1.4. Corporate Officer
The term "Corporate Officer" shall mean a corporate officer ("mandataire social") as defined in Article L. 225-197-1, II of the French Commercial Code.
2. PARTICIPANT
Only an Employee, as defined Section 1.3., and/or a Corporate Officer, as defined Section 1.4., of the Company, or an Affiliate having a capital link as defined in Article L. 225-197-1, II of the French Commercial Code(1), shall be awarded Restricted Stock Units pursuant to this subplan.
Notwithstanding any other provision of the 2003 Plan, Restricted Stock Units awarded under the 2003 Plan to any Employee or Corporate Officer who is holding Stocks representing 10% or more of Waters Corporation's capital at the date of the award or who may hold Stocks representing 10% or more of Waters Corporation's capital due to the award of Restricted Stock Units shall not be deemed to have been awarded pursuant to this subplan.
3. NUMBER OF SHARES OF STOCK GRANTED
Notwithstanding any other provision of the 2003 Plan, the total number of shares of Stock granted under the 2003 French Restricted Stock Units Plan may not exceed 10% of the Company's Stock.
- the employer's company must directly or indirectly hold at least 10% of the issuing company's capital.
- at least 50% of the employer's company capital must be held, directly or indirectly, by a company which holds at least 50% of the issuing company's capital. -
4. MINIMUM PERIOD DURING WHICH THE SHARES OF STOCK CAN NOT BE DELIVERED
Notwithstanding any other provision of the 2003 Plan, the Restricted Stock Units shall not vest and the shares of Stock underlying the Restricted Stock Units shall not be delivered to Participants before the end of a minimum two-year period as from the date of award of the Restricted Stock Units, except in the event of death as described below in Section 7, or as otherwise provided by the French commercial code as exception to this vesting period.
5. RESTRICTION ON THE ACCELERATED VESTING
Notwithstanding any other provision of the 2003 Plan and pursuant to the minimum vesting period described Section 4, the vesting can not be accelerated before the second anniversary of the date of grant of the Restricted Stock Units, except in the event of death as described below in Section 7. or as otherwise provided by the French commercial code as exception to this vesting period.
6. NON TRANSFERABILITY OF THE AWARD
Notwithstanding any other provision of the 2003 Plan, the Restricted Stock Units
can not be transferred or otherwise disposed of, except in the event mentioned
Section 7.
7. TRANSFER TO HEIRS
Notwithstanding any other provision of the 2003 Plan, in the event of death of a Participant, his/her heirs are entitled to request that the number of shares of Stock corresponding to the unvested Restricted Stock Units at the date of death be delivered, provided such request is made within six months as from the date of death.
8. RELEASE OF WHOLE NUMBER OF SHARES OF STOCK
Notwithstanding any other provision of the 2003 Plan, only whole number of Restricted Stock Units shall vest and only whole number of shares of Stock shall be delivered to Participants.
9. PRESENCE CONDITION
9.1 Provided that Restricted Stock Units have been awarded to Employee,
Restricted Stock Units shall vest subject to the continued employment of the
Participant at the Vesting Date, except in the event of death as described above
Section 76, or as otherwise provided by the French commercial code.
9.2 Provided that Restricted Stock Units have been awarded to a Corporate Officer in his capacity of Corporate Officer, Restricted Stock Units shall vest subject to the continued Corporate Officer status of the Participant at the Vesting Date, except in the event of death as described above Section 7, or as otherwise provided by the French commercial code.
10. DEFINITIVE DELIVERY
Notwithstanding any other provision of the 2003 Plan, once the shares of Stock are delivered, they are delivered definitively and can not be cancelled or rescinded and the Participant can not be obliged to return the shares of Stock.
11. MINIMUM TWO YEAR HOLDING PERIOD
Notwithstanding any other provisions of the 2003 Plan, once delivered, the shares of Stock underlying the Restricted Stock Units must be compulsorily held by the Participant during a minimum period of two years beginning on the date of their delivery, except if otherwise provided by the French commercial code.
12. CLOSED PERIODS DURING WHICH THE SHARES OF STOCK CAN NOT BE SOLD
Notwithstanding any other provision of the 2003 Plan, once delivered, shares of Stock shall not be sold within the periods as set forth in Article L. 225-197-1, I of the French Commercial Code(2).
13. NON ADJUSTABILITY OF THE AWARD
Notwithstanding any other provision of the 2003 Plan, the number of Restricted Stock Units awarded as well as the number of shares of Stock delivered can not be modified, except if provided by French law.
14. CHANGES TO THE 2003 PLAN
The Committee or the Board may not change the 2003 Plan in any way that affects this subplan, the Restricted Stock Units awarded or shares of Stock delivered under this subplan, if the change is inconsistent with French law and, in particular, French legislation regarding the granting of free shares of Stock, as defined in Articles L. 225-197-1 to L. 225-197-3 of the French Commercial Code and French labor law.
(i) The period of ten Stock Exchange trading sessions preceding and following the date on which the consolidated financial statements, or failing that, the annual accounts, are published;
(ii) The period between the date on which the corporate management of Waters Corporation becomes aware of information, which, if published, might have a significant effect on the price of the company's shares, and the latest date of the ten Stock Exchange trading sessions following the date on which this information is published.
15. SEVERABILITY
The terms and conditions provided in the 2003 French Restricted Stock Units Plan are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable under French law, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
EXHIBIT 21.1
WATERS CORPORATION AND SUBSIDIARIES
12/31/2006
Waters Corporation (Delaware)
Waters Technologies Corporation (Delaware)
Waters Australia PTY LTD. (Australia)
Waters A/S (Denmark)
Waters AG (Switzerland)
Waters NV (Belgium)
Waters Cromatografia SA (Spain)
Waters SA de CV (Mexico)
Waters Technologies do Brasil Ltda (Brazil)
Waters OY (Finland)
Waters Ges.MBH (Austria)
Waters Kft (Hungary)
Waters Sp.Zo.o (Poland)
Waters SA (France)
Waters GmbH (Germany)
Waters Srl (Romania)
Waters SpA (Italy)
Waters Sverige AB (Sweden)
Thermometric AB (Sweden)
Thermometric, Inc. (U.S.)
Thermometric Ltd (U.K.)
Waters Limited (Canada)
TA Instruments-Waters LLC (Delaware)
TA Instruments, Inc. (Delaware)
Waters France Holding Corp. (Delaware)
NuGenesis Technologies Corporation
Environmental Resource Assoc., Inc. (Colorado)
Pharmaceutical Resource Assoc, Inc. (Colorado)
PRA Europe Limited (UK)
Waters Investments Limited (Delaware)
Waters India Pvt. Ltd.(India)
Esbee Wire Pvt. Ltd. (India)
Waters Asia Limited (Delaware)
Waters Korea (Korea)
Waters China Ltd. (Hong Kong)
Waters Technologies (Shanghai) Ltd
Waters Pacific Pte Ltd
Waters European Holdings LLP
Milford International Limited
Manchester International Limited
MM European Holdings LLP
Waters Finance III LLC
Waters Luxembourg SARL
Waters Tech. Holdings Ltd (Ireland)
Grand Duchy Finance SARL (Lux)
Waters Celtic Holdings Ltd (Ireland)
Waters Tech Ireland Ltd
Nihon Waters Limited (Delaware)
Nihon Waters K.K. (Japan)
TA Instruments Japan, Inc. (Japan)
Microsep Proprietary Ltd (So. Africa) (24.5%)
Micromass Holdings Ltd.
Waters Chromatography BV (Netherlands)
Waters Chromatography Europe BV (Netherlands)
Micromass Ltd. (UK)
Waters Ltd. (UK)
Phase Sep Ltd. (UK)
Phase Sep Eurl (France)
Micromass UK Ltd. (UK)
Micromass Investments Ltd. (UK)
Mass Analyser Prod Ltd. (UK)
Micromass International Ltd. (UK)
Micromass B.V. (Netherlands)
TA Instruments Ltd. (UK)
Sandygrow Ltd. (Ireland)
Rodolfo Holding Ltd. (Ireland)
Milford Finance BV (Netherlands)
Waters Chromatography Ireland Ltd. (Ireland)
All subsidiaries are 100% owned unless otherwise indicated.
EXHIBIT 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in the Registration Statements on Forms S-3 (No. 333-134492) and S-8 (Nos. 333-137990, 333-110613, 333-92332, 333-60054, 333-81723, 333-18371) of Waters Corporation of our report dated March 1, 2007 relating to the financial statements, management's assessment of the effectiveness of internal control over financial reporting and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.
/s/ PricewaterhouseCoopers LLP PricewaterhouseCoopers LLP Boston, Massachusetts March 1, 2007 |
Date: March 1, 2007
|
||||
|
||||
|
/s/ Douglas A. Berthiaume | |||
|
||||
|
Douglas A. Berthiaume | |||
|
Chief Executive Officer |
Date: March 1, 2007
|
||||
|
||||
|
/s/ John Ornell | |||
|
||||
|
John Ornell | |||
|
Chief Financial Officer |
Date: March 1, 2007
|
||||||
|
||||||
|
By: |
/s/ Douglas A. Berthiaume
|
||||
Douglas A. Berthiaume | ||||||
Chief Executive Officer |
Date: March 1, 2007
|
||||||
|
||||||
|
By: | /s/ John Ornell | ||||
|
||||||
|
John Ornell | |||||
|
Chief Financial Officer |