Document:

EX-10.1

 Exhibit 10.1 

McKESSON CORPORATION 

MANAGEMENT INCENTIVE PLAN 

Amended and Restated, Effective July 29, 2015 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	PAGE	 
	 A.
	 	 NAME; EFFECTIVE TIME.
	  	 	1	  
			
	 B.
	 	 PURPOSE.
	  	 	1	  
			
	 C.
	 	 ADMINISTRATION.
	  	 	1	  
			
	 D.
	 	 PARTICIPATION.
	  	 	2	  
			
	 E.
	 	 INDIVIDUAL TARGET AWARDS FOR PARTICIPANTS.
	  	 	2	  
			
	 F.
	 	 BASIS OF AWARDS.
	  	 	3	  
			
	 G.
	 	 AWARD DETERMINATION.
	  	 	4	  
			
	 H.
	 	 PROCEDURES APPLICABLE TO COVERED EMPLOYEES.
	  	 	5	  
			
	 I.
	 	 PAYMENT OF AWARDS.
	  	 	5	  
			
	 J.
	 	 EMPLOYMENT ON PAYMENT DATE.
	  	 	5	  
			
	 K.
	 	 CHANGE IN CONTROL.
	  	 	6	  
			
	 L.
	 	 FORFEITURE.
	  	 	6	  
			
	 M.
	 	 RECOUPMENT.
	  	 	7	  
			
	 N.
	 	 WITHHOLDING TAXES.
	  	 	7	  
			
	 O.
	 	 EMPLOYMENT RIGHTS.
	  	 	7	  
			
	 P.
	 	 NONASSIGNMENT; PARTICIPANTS ARE GENERAL CREDITORS.
	  	 	7	  
			
	 Q.
	 	 AMENDMENT OR TERMINATION.
	  	 	8	  
			
	 R.
	 	 SUCCESSORS AND ASSIGNS.
	  	 	8	  
			
	 S.
	 	 GOVERNING LAW.
	  	 	8	  
			
	 T.
	 	 INTERPRETATION AND SEVERABILITY.
	  	 	8	  
			
	 U.
	 	 DEFINITIONS.
	  	 	8	  
			
	 V.
	 	 EXECUTION.
	  	 	11	  

  
 i 

 McKESSON CORPORATION 

MANAGEMENT INCENTIVE PLAN 

Amended and Restated on May 26, 2015 
  

	A.	NAME; EFFECTIVE TIME. 

 The name of this plan is the McKesson Corporation Management
Incentive Plan. On May 25, 2005, the Board of Directors of McKesson Corporation (the “Board”) adopted the Plan, effective for fiscal years of the Company commencing on and after April 1, 2005, with such adoption subject to
stockholder approval, which was granted on July 27, 2005. The Committee subsequently amended and restated the Plan on and effective October 27, 2006, amended and restated the Plan on October 24, 2008, effective January 1, 2009,
amended and restated the Plan on and effective April 20, 2010, amended and restated the Plan on April 21, 2010, effective as of July 28, 2010, and amended and restated the Plan on and effective April 29, 2014. The Compensation
Committee amended and restated the Plan May 26, 2015, subject to stockholder approval, which was granted and the Plan became effective July 29, 2015. 
  

	B.	PURPOSE. 

 The purpose of the Plan is to advance and promote the interests of the Company
and its stockholders by providing performance based incentives to certain employees and to motivate those employees to set and achieve above average financial and non financial objectives. 

 

	C.	ADMINISTRATION. 

 The Committee shall have full power and authority, subject to the
provisions of the Plan, (i) to designate employees as Participants for any Performance Period, (ii) to add and delete employees, subject to the eligibility requirement set forth in paragraph D.1 below, from the list of designated
Participants, (iii) to establish Individual Target Awards for Participants, (iv) to establish performance goals upon achievement of which the Individual Target Awards will be based, and (v) to take all action in connection with the
foregoing or in relation to the Plan as it deems necessary or advisable. Decisions and selections of the Committee shall be made by a majority of its members and, if made pursuant to the provisions of the Plan, shall be final. 

Notwithstanding the foregoing, the Committee may delegate to the Chief Executive Officer (the “CEO”) the power and authority,
subject to the provisions of the Plan, (i) to designate employees who are not members of the Officer Group as Participants, (ii) to recommend members of the Officer Group to the Committee for designation as Participants; provided that the
Committee shall review and approve members of the Officer Group as Participants recommended by the CEO, (iii) to add and delete employees who are not members of the Officer Group, subject to the eligibility requirement set forth in paragraph
D.1 below, from the list of designated Participants, (iv) to establish Individual Target 

  
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Awards for Participants who are not members of the Officer Group, (v) to establish performance goals upon achievement of which such Individual Target Awards will be based, and (vi) to
review and approve, modify or disapprove, or otherwise adjust or determine the amount, if any, to be paid to Participants who are not members of the Officer Group for the applicable Performance Period based on such Participants’ performance
goals and individual performance. In addition to the forgoing, the CEO may further delegate his authority to other executive offices of the Company, except that the CEO may not delegate his authority to recommend members of the Officer Group to the
Committee for designation as Participants. References to the Committee herein shall include references to the CEO and his designees to the extent that the Committee has delegated power and authority under the Plan to the CEO and to the extent that
the CEO has further delegated power and authority under the Plan to other executive officers of the Company. 
 The Committee may promulgate
such rules and regulations as it deems necessary for the proper administration of the Plan and the CEO (but not his designees) may promulgate rules and regulations as he deems necessary for the proper administration of the Plan with respect to
Participants who are not members of the Officer Group. The Committee may interpret the provisions and supervise the administration of the Plan, and take all action in connection therewith or in relation to the Plan as it deems necessary or
advisable. The interpretation and construction by the Committee of any provision of the Plan or of any award shall be final. 
  

	D.	PARTICIPATION. 

  

	 	1.	Eligibility—Executives, Managers and Professionals 

 Only an active employee of the Company
who is employed in an executive, managerial or professional capacity may be designated as a Participant under the Plan; provided, however, that designation as a Participant is contingent upon the execution and delivery to the Company of an
agreement, within a period following presentment and in a form that is satisfactory to the Company, regarding confidentiality, intellectual property and/or other restrictive covenants, as well as compliance with such agreement; and provided,
further, that the Committee shall determine in its sole discretion whether the Participant has complied with such agreement, and its determination shall be conclusive and binding on all interested persons. 

 

	 	2.	Designation of Participants 

 No person shall be entitled to any award under the Plan for any
Performance Period unless he or she is so designated as a Participant for that Performance Period. 
  

	E.	INDIVIDUAL TARGET AWARDS FOR PARTICIPANTS. 

 At the beginning of each Performance Period,
the Committee shall establish an Individual Target Award for each Participant. An Individual Target Award shall only be a target and the amount of the target may or may not be paid to the Participant. Establishment of an Individual Target Award for
an employee for any Performance Period shall not imply or require that an Individual Target Award or an Individual Target Award at any specified 

  
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level will be set for any subsequent year. The amount of any actual award paid to any Participant may be greater or less than this target. As set forth in paragraph G.4 below (but subject to the
limitations applicable to Covered Employees contained in Article H), the actual award may be as much as three times target or as low as zero for any Performance Period. The Individual Target Award may be established for a Participant by name, job
level, position or any other similar identifier. 
  

	F.	BASIS OF AWARDS. 

  

	 	1.	Performance Goals 

 The Committee shall establish measures, which may include financial and non
financial objectives (“Performance Goals”) for each segment of the Company. These Performance Goals shall be determined by the Committee in advance of each Performance Period or within such period as may be permitted by the regulations
issued under Section 162(m), and to the extent that awards are paid to Covered Employees, the performance criteria to be used shall be any of the following, either alone or in any combination, which may be expressed with respect to the Company
or one or more operating units or groups, as the Committee may determine: cash flow; cash flow from operations; total earnings; earnings per share, diluted or basic; earnings per share from continuing operations, diluted or basic; earnings before
interest and taxes; earnings before interest, taxes, depreciation, and amortization; earnings from operations; net asset turnover; inventory turnover; capital expenditures; net earnings; operating earnings; gross or operating margin; debt; working
capital; return on equity; return on net assets; return on total assets; return on investment; return on capital; return on committed capital; return on invested capital; return on sales; net or gross sales; market share; economic value added; cost
of capital; change in assets; expense reduction levels; debt reduction; productivity; stock price; customer satisfaction; employee satisfaction; total shareholder return; average invested capital; credit rating; gross margin; improvement in
workforce diversity; operating expenses; operating expenses as a percentage of revenue; succession plan development and implementation, M&A performance; and litigation and regulatory resolution. 

 

	 	2.	Adjustment Of Performance Goals 

 The Committee may determine Performance Goals on an absolute
basis or relative to internal goals or relative to levels attained in prior years or related to other companies or indices or as ratios expressing relationships between two or more Performance Goals. In addition, Performance Goals may be based upon
the attainment of specified levels of Company performance criteria under one or more of the measures described above relative to the performance of other corporations or a designated comparison group. The Committee shall specify the manner of
adjustment of any Performance Goal to the extent necessary to prevent dilution or enlargement of any award as a result of extraordinary events or circumstances, as determined by the Committee, or to exclude the effects of extraordinary, unusual, or
non recurring items; changes in applicable laws, regulations, or accounting principles; currency fluctuations; discontinued operations; non-cash items, such as amortization, depreciation, or reserves; asset impairment; or any recapitalization,
restructuring, reorganization, merger, acquisition, divestiture, consolidation, spin off, split up, combination, liquidation, dissolution, sale of assets, or other similar corporate transaction. 

  
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	 	3.	Performance Goals Related To More Than One Segment Of The Company 

 Awards may be based on
performance against objectives for more than one segment of the Company. For example, awards for corporate management may be based on overall corporate performance against objectives, but awards for a unit’s management may be based on a
combination of corporate, unit and sub-unit performance against objectives. 
  

	 	4.	Performance Period; Individual Performance 

 The Committee shall specify the Performance Period
over which period Performance Goals will be measured and determined. 
 Subject to the limitations set forth in Article H below, individual
performance of each Participant may be measured and used in determining awards under the Plan. 
  

	G.	AWARD DETERMINATION. 

  

	 	1.	Award Determined By Committee 

 After any Performance Period for which an Individual Target
Award is established for a Participant under the Plan, the Committee shall review and approve, modify or disapprove the amount, if any, to be paid to the Participant for the Performance Period. The amount paid shall be the Individual Target Award
adjusted to reflect both the results against the Participant’s Performance Goals and the Participant’s individual performance. Subject to Article H, all awards are subject to adjustment at the sole discretion of the Committee. 

 

	 	2.	Financial And Non-Financial Performance 

 Individual Target Award amounts will be modified based
on the achievement of financial and non financial objectives by the Company and relevant units and/or sub-units. Performance results against objectives shall be reviewed and approved by the Committee in accordance with paragraph F.2 above, as
applicable. 
  

	 	3.	Individual Performance 

 Any Individual Target Award, adjusted to reflect financial performance,
may be further adjusted with the review and approval of the Committee to give full weight to the Participant’s individual performance during the Performance Period. 
  

	 	4.	Overall Effect 

 Subject to Article H, the combination of any financial performance adjustment
and individual performance adjustment may increase the amount paid under the Plan to a Participant for any Performance Period to as much as three times the Individual Target Award, and may reduce any amount payable to zero. 

  
 4 

	H.	PROCEDURES APPLICABLE TO COVERED EMPLOYEES. 

 Awards under the Plan to Participants who
are Covered Employees shall be subject to pre-established Performance Goals as set forth in this Article H. Notwithstanding the provisions of paragraph G.3 above, the Committee shall not have discretion to modify the terms of awards to such
Participants except as specifically set forth in this Article H. 
 At the beginning of a Performance Period, the Committee shall establish
Individual Target Awards for such of the Participants who may be Covered Employees, payment of which shall be conditioned upon satisfaction of specific Performance Goals for the Performance Period established by the Committee in writing in advance
of the Performance Period, or within such period as applicable regulations under Section 162(m) may permit to qualify payments to be “performance-based.” The Performance Goals established by the Committee shall be based on one or more
of the criteria set forth in paragraph F.1 above. The extent, if any, to which an award will be payable will be based upon the degree of achievement of the Performance Goals in accordance with a pre established objective formula or standard as
determined by the Committee. The application of the objective formula or standard to the Individual Target Award will determine whether the Covered Employee’s award for the Performance Period is greater than, equal to or less than the
Participant’s Individual Target Award. To the extent that the minimum Performance Goals are satisfied or surpassed, and upon written certification by the Committee that the Performance Goals have been satisfied to a particular extent, payment
of the award shall be made as soon as reasonably practicable after the Payment Date in accordance with the objective formula or standard applied to the Individual Target Award unless the Committee determines, in its sole discretion, to reduce or
eliminate the payment to be made. 
 Notwithstanding any other provision of the Plan, the maximum award payable to any Participant who is a
Covered Employee for any fiscal year of the Company shall not exceed $6,000,000. 
  

	I.	PAYMENT OF AWARDS. 

 An award under the Plan shall be paid in a single sum to the
Participant as soon as reasonably practicable after Payment Date, unless the Participant elects to defer his or her award pursuant to the terms and conditions of the Company’s Deferred Compensation Administration Plan III (“DCAP III”)
and in compliance with Section 409A of the Code. To the extent that an award is not deferred under DCAP III, such award shall be paid no later than the end of the period under which payment would be deemed to be a “short-term
deferral” as defined in the regulations under Section 409A of the Code. 
  

	J.	EMPLOYMENT ON PAYMENT DATE. 

 No award shall be made to any Participant who is not an
active employee of the Company on the Payment Date; provided, however, that the Committee, in its sole and absolute discretion, may make full or prorated awards to Participants in circumstances that the Committee deems appropriate in its discretion,
including, but not limited to, a Participant’s death, disability, retirement or other termination of employment prior to the 

  
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Payment Date. Any such awards shall be determined by the Committee in accordance with Article G above after taking into account the portion of the Performance Period completed. Notwithstanding
the foregoing, any award, whether or not prorated, that the Committee in its sole and absolute discretion may make to a Covered Employee upon a circumstance that is not death, disability or a Change in Control, shall be based on the attainment of
the pre established Performance Goals designated for the applicable performance period under Article H above. 
  

	K.	CHANGE IN CONTROL. 

 In the event of a Change in Control, the Company or any successor or
surviving corporation shall pay to each Participant an award for the Performance Period in which the Change in Control occurs and for any previous Performance Period for which awards have been earned but not yet paid; provided, however, any awards
for any previous Performance Period paid to a Covered Employee shall be based on the attainment of the pre established Performance Goals designated for the applicable performance period under Article H above. Subject to the employment requirements
of Article J, each such award shall be equal to the greatest of the following: (i) the Participant’s Individual Target Award for the applicable Performance Period; (ii) the Participant’s Individual Target Award for the applicable
Performance Period adjusted based on the actual performance outcome for that Performance Period, provided, that the Committee may not invoke its discretionary authority to reduce the amount of such an award; or (iii) the average of awards
earned and paid to (or deferred by) the Participant in the three (or such fewer number of years that the Participant has been eligible for such an award) completed Performance Periods immediately preceding the applicable Performance Period. Such
awards shall be paid by the Company or any successor or surviving corporation at such time as the awards otherwise would be payable under the Plan; provided, however, that if a Participant is terminated without Cause or terminates for Good Reason
within twelve months after a Change in Control, then such Participant shall be paid his or her awards determined under this Article K, within thirty days of such termination. Notwithstanding the foregoing, any award determined pursuant to this
Article K shall be reduced by any corresponding award payable under a Participant’s individual written employment agreement, if any. 
  

	L.	FORFEITURE. 

 Any other provision of the Plan to the contrary notwithstanding, if the
Committee determines that a Participant has engaged in criminal activity, fraud, misconduct, embezzlement or any other improper act involving moral turpitude, then upon written notice from the Company to the Participant (i) the Participant
shall not be eligible for any award for the year in which such notice is given or for the preceding year, if such award has not been paid as of the date of the notice, (ii) any payment of an award received by the Participant within twelve
months prior to the date that the Company discovered that the Participant engaged in any action described below shall immediately be repaid to the Company by the Participant in cash (including amounts withheld pursuant to Article M) and
(iii) any award deferred pursuant to Article I within twelve months prior to the date that the Company discovered that the Participant engaged in any action described below shall be forfeited immediately and shall not be distributed to the
Participant under any 

  
 6 

 
circumstances. The Committee shall determine in its sole discretion whether the Participant has engaged in any of the acts set forth above, and its determination shall be conclusive and binding
on all interested persons. 
 Any provision of this Article L which is determined by a court of competent jurisdiction to be invalid or
unenforceable should be construed or limited in a manner that is valid and enforceable and that comes closest to the business objectives intended by such invalid or unenforceable provision, without invalidating or rendering unenforceable the
remaining provisions of this Article L. The remedy described in this Article L is in addition to and not in lieu of remedies available in law and in equity. 
  

	M.	RECOUPMENT. 

 Individual Target Awards, and payments made under such awards, are subject
to the Corporation’s Compensation Recoupment Policy, which was first adopted by the Corporation on January 20, 2010, as amended from time to time, and which is hereby incorporated by reference into this Plan. 

 

	N.	WITHHOLDING TAXES. 

 Whenever the payment of an award is made, such payment shall be net
of an amount sufficient to satisfy federal, state and local income and employment tax withholding requirements and authorized deductions. 
  

	O.	EMPLOYMENT RIGHTS. 

 Neither the Plan nor designation as a Plan Participant shall be
deemed to give any individual a right to remain employed by the Company. The Company reserves the right to terminate the employment of any employee at any time, with or without cause or for no cause, subject only to the requirements of a written
employment contract (if any). 
  

	P.	NONASSIGNMENT; PARTICIPANTS ARE GENERAL CREDITORS. 

 The interest of any Participant
under the Plan shall not be assignable either by voluntary or involuntary assignment or by operation of law (except by designation of a beneficiary or beneficiaries to the extent allowed under DCAP III or a successor plan with respect to amounts
deferred under Article I) and any attempted assignment shall be null, void and of no effect. 
 Amounts paid under the Plan shall be paid
from the general funds of the Company, and each Participant shall be no more than an unsecured general creditor of the Company with no special or prior right to any assets of the Company for payment of any obligations hereunder. Nothing contained in
the Plan shall be deemed to create a trust of any kind for the benefit of any Participant, or create any fiduciary relationship between the Company and any Participant with respect to any assets of the Company. 

  
 7 

	Q.	AMENDMENT OR TERMINATION. 

 The Board of Directors may terminate or suspend the Plan at
any time. The Committee may amend the Plan at any time; provided that (i) to extent required under Section 162(m), the Plan will not be amended without prior approval of the Company’s stockholders, and (ii) no amendment shall
retroactively and adversely affect the payment of any award previously made. Notwithstanding the foregoing, no amendment adopted following the occurrence of a Change in Control shall be effective if it (a) would reduce a Participant’s
Individual Target Award for the Performance Period in which the Change in Control occurs, (b) would reduce an award payable to a Participant based on the achievement of Performance Goals in the Performance Period before the Performance Period
in which the Change in Control occurs, or (c) modify the provisions of this Article P. 
  

	R.	SUCCESSORS AND ASSIGNS. 

 This Plan shall be binding on the Company and its successors or
assigns. 
  

	S.	GOVERNING LAW. 

 The law of the State of Delaware shall govern all question concerning
the construction, validity and interpretation of the Plan, without regard to the state’s conflict of laws rules. 
  

	T.	INTERPRETATION AND SEVERABILITY. 

 The Plan is intended to comply with
Section 162(m), and all provisions contained herein shall be construed and interpreted in a manner to so comply. In case any one or more of the provisions contained in the Plan shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of the Plan, but the Plan shall be construed as if such invalid, illegal or unenforceable provisions had never been contained herein.

  

	U.	DEFINITIONS. 

  

	 	1.	“Cause” 

 “Cause” shall mean termination of the Participant’s
employment upon the Participant’s willful engagement in misconduct which is demonstrably and materially injurious to the Company. No act, or failure to act, on the part of the Participant shall be considered “willful” unless done, or
omitted to be done, by the Participant not in good faith and without reasonable belief that the Participant’s action or omission was in the best interest of the Company. 
  

	 	2.	“Change in Control” 

 A “Change in Control” shall mean the occurrence of any
change in ownership of the Company, change in effective control of the Company, or change in the ownership of a substantial portion of the assets of the Company, as defined in Section 409A(a)(2)(A)(v) of the Code, regulations promulgated
thereunder, and any other published interpretive authority, as issued or amended from time to time. 

  
 8 

	 	3.	“Code” 

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

  

	 	4.	“Committee” 

 “Committee” shall mean the Compensation Committee of the Board
of Directors of McKesson Corporation; provided, however, that the Committee shall consist solely of two or more “outside directors,” in conformance with Section 162(m) of the Code. 

 

	 	5.	“Company” 

 “Company” shall mean McKesson Corporation, a Delaware
corporation, including its subsidiaries and affiliates. 
  

	 	6.	“Covered Employee” 

 “Covered Employee” shall mean an eligible Participant
designated by the Committee who is, or is expected to be, a “covered employee” within the meaning of Section 162(m) for the Performance Period in which an award is payable hereunder. 

 

	 	7.	“Good Reason” 

 “Good Reason” shall mean any of the following actions, if
taken without the express written consent of the Participant: 
  

	 	a.	any material change by the Company in the functions, duties, or responsibilities of the Participant, which change would cause such Participant’s position with the Company to become of less dignity, responsibility,
importance, or scope from the position and attributes that applied to the Participant immediately prior to the Change in Control; 

  

	 	b.	any reduction in the Participant’s base salary; 

  

	 	c.	any material failure by the Company to comply with any of the provisions of any employment agreement between the Company and the Participant; 

 

	 	d.	the requirement by the Company that the Participant be based at any office or location more than 25 miles from the office at which the Participant is based on the date immediately preceding the Change in Control, except
for travel reasonably required in the performance of the Participant’s responsibilities and commensurate with the amount of travel required of the Participant prior to the Change in Control; or 

  
 9 

	 	e.	any failure by the Company to obtain the express assumption of this Plan by any successor or assign of the Company. 

  

	 	8.	“Individual Target Award” 

 “Individual Target Award” shall mean the target
award established for each Participant under Article E, which shall be a percentage of the Participant’s base salary or a fixed dollar amount, as determined by the Committee. 

 

	 	9.	“Officer Group” 

 “Officer Group” shall mean the Covered Employees and any
other officer of the Company designated as part of the Officer Group by the Committee. 
  

	 	10.	“Participants” 

 “Participants” shall mean those employees specifically
designated as Participants for a Performance Period under Article D. 
  

	 	11.	“Payment Date” 

 “Payment Date” shall mean the date following the conclusion
of a Performance Period on which the Committee certifies that applicable Performance Goals have been satisfied and authorizes payment of corresponding awards. 
  

	 	12.	“Performance Goals” 

 “Performance Goals” shall have the meaning set forth
in Article F hereof. 
  

	 	13.	“Performance Period” 

 “Performance Period” shall mean the time period over
which Performance Goals of the Company are measured, as the Committee determines in its discretion; provided that if the Committee does not designate a time period, then the Performance Period shall mean the fiscal year of the Company. 

 

	 	14.	“Plan” 

 “Plan” shall mean the McKesson Corporation Management Incentive
Plan, as amended from time to time. 
  

	 	15.	“Section 162(m)” 

 “Section 162(m)” shall mean Section 162(m) of the
Code and regulations promulgated thereunder, as may be amended from time to time. 

  
 10 

	V.	EXECUTION. 

 This amended and restated Management Incentive Plan was adopted by the Board
on May 26, 2015, subject to stockholder approval, which was granted and this amended and restated Management Incentive Plan became effective on July 29, 2015. 
  

			
	McKESSON CORPORATION
		
	By:	 	 /s/ Jorge L. Figueredo

		 	Jorge L. Figueredo
		 	Executive Vice President, Human Resources

  
 11ex10-1.htm

Exhibit 10.1

 

AMENDMENT NO. 3

 

Dated as of May 4, 2015

 

to

 

CREDIT AGREEMENT

 

Dated as of May 30, 2013

 

THIS AMENDMENT NO. 3 (this “Amendment”) is made as of May 4, 2015 by and among Littelfuse, Inc., a Delaware corporation (the “Borrower”), the financial institutions listed on the signature pages hereof and JPMorgan Chase Bank, N.A., as Agent (the “Agent”), under that certain Credit Agreement dated as of May 31, 2013 by and among the Borrower, the Lenders and the Agent (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.

 

WHEREAS, the Borrower has requested that the requisite Lenders and the Agent agree to make certain modifications to the Credit Agreement;

 

WHEREAS, the Borrower, the Lenders party hereto and the Agent have so agreed on the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Lenders party hereto and the Agent hereby agree to enter into this Amendment.

 

1.         Amendment to the Credit Agreement. Effective as of the date of satisfaction of the conditions precedent set forth in Section 2 below, the parties hereto agree that the Credit Agreement is hereby amended as follows:

 

(a)        Section 1.01 of the Credit Agreement shall be amended to add the following definitions thereto in the appropriate alphabetical order:

 

“Affected Domestic Subsidiary” means any Domestic Subsidiary that is owned, directly or indirectly, by a controlled foreign corporation within the meaning of Section 957 of the Code.

 

“Internal Restructuring” means, collectively, (a) (i) the Disposition of foreign branches of Domestic Subsidiaries and foreign assets of Domestic Subsidiaries to the Borrower or any Subsidiary of the Borrower (whether or not any such Subsidiary is a Guarantor) and (ii) the establishment of additional U.S. or foreign branches of Persons, in each case, as part of the implementation of international tax planning by the Borrower and its Subsidiaries or (b) the Disposition of Littelfuse SA de CV, Productos Electromecanicos BAC, S de RL de CV, and Cole Hersee S de RL de CV that operate as maquiladoras (collectively, the “Maquiladoras”), through which the Borrower performs manufacturing operations in Piedras Negras, Coahuila, Mexico, as described in greater detail herein. Pursuant to the Disposition described in (b), the Borrower will continue to own substantially the same interests in the Maquiladoras, but through a number of wholly-owned or more than 98%-owned Subsidiaries, including Littlelfuse Mexico Manufacturing B.V., a Netherlands entity (the “Dutch Principal”). Ownership of the remaining interest in each of the Maquiladoras will transfer from being held by a current Subsidiary of the Borrower or officer of the Borrower to the Dutch Principal. The Maquiladoras will perform services for a Mexican-registered branch of the Dutch Principal.

 

 

 

 

 

(b)       The definition of “Guarantors” appearing in Section 1.01 of the Credit Agreement shall be amended by amending and restating such definition as follows:

 

“Guarantors” means collectively, the Domestic Subsidiaries (present and future) of Borrower, other than any Affected Domestic Subsidiary.

 

(c)       Section 6.12 of the Credit Agreement shall be amended by adding “(other than an Affected Domestic Subsidiary)” immediately after “Domestic Subsidiary”.

 

(d)       Section 7.02(b) of the Credit Agreement shall be amended and restated in its entirety as follows:

 

“(b) (i) Permitted Acquisitions and (ii) Investments in respect of any Internal Restructuring;”

 

(e)       Section 7.02(h) of the Credit Agreement shall be amended by deleting the reference therein to “10%” and replacing such reference with “12.5%”.

 

(f)        Section 7.03(g) of the Credit Agreement shall be amended by deleting the references therein to “$25,000,000” and replacing such references with “50,000,000”.

 

(g)       Section 7.05(e) of the Credit Agreement shall be amended and restated in its entirety as follows:

 

“(e) (i) Dispositions in connection with or in order to effect the Internal Restructuring and (ii) Dispositions permitted by Section 7.04; and”

 

2.        Conditions of Effectiveness. The effectiveness of this Amendment is subject to the conditions precedent that (i) the Agent shall have received counterparts of this Amendment duly executed by the Borrower, the Required Lenders and the Agent, (ii) the Agent shall have received counterparts of the Consent and Reaffirmation attached as Exhibit A hereto duly executed by the Guarantors, (iii) the Administrative Agent shall have received, for the account of each Lender party hereto that delivers its executed signature page to this Amendment by no later than the date and time specified by the Administrative Agent, an amendment fee in an amount equal to $5,000 and (iv) the Agent shall have received payment and/or reimbursement of the Agent’s and its affiliates’ reasonable fees and expenses (including, to the extent invoiced, reasonable fees and expenses of counsel for the Agent) in connection with this Amendment.

 

 

2

 

 

3.          Representations and Warranties of the Borrower. The Borrower hereby represents and warrants as follows:

 

(a)      This Amendment and the Credit Agreement as modified hereby constitute legal, valid and binding obligations of the Borrower and are enforceable against the Borrower in accordance with their terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enhancement of creditors’ rights generally and by general principles of equity.

 

(b)      As of the date hereof and after giving effect to the terms of this Amendment, (i) no Default has occurred and is continuing and (ii) the representations and warranties of the Borrower set forth in Article V of the Credit Agreement (as amended hereby) or any other Loan Document are true and correct in all material respects (or in all respects to the extent the applicable representation and warranty is qualified by materiality or Material Adverse Effect) (except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that the representations and warranties contained in subsections (a), (b) and (c) of Section 5.05 of the Credit Agreement are deemed to refer to the most recent statements furnished pursuant to clauses (a), (b) and (c), respectively, of Section 6.01 of the Credit Agreement).

 

4.         Reference to and Effect on the Credit Agreement.

 

(a)       Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as amended hereby.

 

(b)       Each Loan Document and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

 

(c)       Except with respect to the subject matter hereof, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement, the Loan Documents or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

(d)       This Amendment is a “Loan Document” under (and as defined in) the Credit Agreement.

 

5.         Governing Law. and Amendment shall be construed in accordance with and governed by the law of the State of New York.

 

6.        Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

7.         Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Signatures delivered by facsimile or PDF shall have the same force and effect as manual signatures delivered in person.

 

[Signature Pages Follow]

 

 

3

 

 

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

  

 

	
 
	
LITTELFUSE, INC.,

	
 
	
as the Borrower

	
 
	
 

	
 
	
 

	
 
	
By: /s/Phillip G. Franklin

	
 
	
Name: Phillip G. Franklin

	
 
	
Title: Executive Vice President and Chief Financial Officer

 

 

 

Signature Page to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

 

 

 

 

 

	
 
	JPMORGAN CHASE BANK, N.A.,
	
 
	individually as a Lender, as the Swing Line Lender, as the L/C Issuer and as Agent
	
 
	
 

	
 
	
 

	
 
	By: /s/ Suzanne Ergastolo
	
 
	Name: Suzanne Ergastolo
	
 
	Title: Vice President

 

 

 

Signature Page to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

 

 

 

 

 
	
 
	
BANK OF AMERICA, N.A.,

	
 
	
as a Lender

	
 
	
 

	
 
	
 

	
 
	By: /s/ Milena Deltchev
	
 
	Name: Milena Deltchev
	
 
	Title: Vice President

 

 

 

Signature Page to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

 

 

 

 

 
	
 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	
 
	as a Lender
	
 
	
 

	
 
	
 

	
 
	By: /s/ Edmund H Lester
	
 
	Name: Edmund H Lester
	
 
	Title: Senior Vice President

 

 

 

Signature Page to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

 

 

 

 

 
	
 
	
PNC BANK, NATIONAL ASSOCIATION,

	
 
	as a Lender
	
 
	
 

	
 
	
 

	
 
	By: /s/ Kristin Lenda
	
 
	Name: Kristin Lenda
	
 
	Title: Senior Vice President

 

 

 

Signature Page to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

 

 

 

 

 
	
 
	
THE NORTHERN TRUST COMPANY,

	
 
	as a Lender
	
 
	
 

	
 
	
 

	
 
	By: /s/ Brittany Mondane
	
 
	Name: Brittany Mondane
	
 
	Title: Second Vice President

 

 

 

Signature Page to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

 

 

 

 

 

 
	
 
	BMO HARRIS BANK N.A.,
	
 
	as a Lender
	
 
	
 

	
 
	
 

	
 
	By: /s/ Edward McGuire 
	
 
	Name: Edward McGuire
	
 
	Title: Managing Director

 

 

 

Signature Page to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

 

 

 

 

 
	
 
	BRANCH BANKING & TRUST COMPANY,
	
 
	
as a Lender

	
 
	
 

	
 
	
 

	
 
	By: /s/ John P. Malloy
	
 
	Name: John P. Malloy
	
 
	Title: Senior Vice President

 

 

 

Signature Page to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

 

 

 

 

 

EXHIBIT A

 

Consent and Reaffirmation

 

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 3 to Credit Agreement with respect to that certain Credit Agreement dated as of May 31, 2013 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) by and among Littelfuse, Inc., a Delaware corporation (the “Borrower”), the Lenders and JPMorgan Chase Bank, N.A., as Agent (the “Agent”), which Amendment No. 3 to Credit Agreement is dated as of May 4, 2015 and is by and among the Borrower, the financial institutions listed on the signature pages thereof and the Agent (the “Amendment”). Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement. Without in any way establishing a course of dealing by the Agent or any Lender, each of the undersigned consents to the Amendment and reaffirms the terms and conditions of the Guaranty and any other Loan Document executed by it and acknowledges and agrees that the Guaranty and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed. All references to the Credit Agreement contained in the above-referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, modified or restated.

 

 

Dated: May 4, 2015

[Signature Page Follows]

 

 

 

 

 

IN WITNESS WHEREOF, this Consent and Reaffirmation has been duly executed as of the day and year above written.

 

	  	
COLE HERSEE COMPANY

 

 

By: /s/ Phillip G. Franklin

Name: Phillip G. Franklin

Title: Director

 

	 	 
	  	
SYMCOM, INC.

 

 

By: /s/ Phillip G. Franklin

Name: Phillip G. Franklin

Title: Director

 

	 	 
	  	
SSAC, LLC

 

 

By: /s/ Phillip G. Franklin

Name: Phillip G. Franklin

Title: Manager

 

	 	 
	  	
SC BUILDING, LLC

 

 

By: /s/ Phillip G. Franklin

Name: Phillip G. Franklin

Title: Manager

 

	 	 
	  	
LFUS, LLC

 

 

By: /s/ Phillip G. Franklin

Name: Phillip G. Franklin

Title: Manager

 

	 	 
	  	
HAMLIN, INCORPORATED

 

 

By: /s/Phillip G. Franklin

Name: Phillip G. Franklin

Title: Director

 

 

Signature Page to Consent and Reaffirmation to Amendment No. 3 to

Credit Agreement dated as of May 30, 2013

Littelfuse, Inc.

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