Document:

Exhibit

EXHIBIT 10.3
Certain portions of this exhibit (indicated by “[*****]”) have been omitted pursuant to Item 601(b)(10) of Regulation S-K.

Execution Version
FORBEARANCE AGREEMENT
THIS FORBEARANCE AGREEMENT (this “Agreement”) is entered into as of June 2, 2020, by and among CALIFORNIA RESOURCES CORPORATION, a Delaware corporation (the “Borrower”), the other Guarantors party hereto (the “Guarantors”), THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”) and the Lenders party hereto (the “Forbearing Lenders”).
W I T N E S S E T H:
WHEREAS, the Borrower, the Guarantors, the Forbearing Lenders and the Administrative Agent are parties to that certain Credit Agreement, dated as of November 17, 2017 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”; unless otherwise defined herein, capitalized terms used herein that are not otherwise defined herein shall have the respective meanings assigned to such terms in the Credit Agreement); 
WHEREAS, the Borrower has informed the Administrative Agent and the Lenders that Events of Default are anticipated to occur under (i) Section 12.1 of the Credit Agreement as a result of the Borrower’s failure (or expected failure) to pay interest on the 2017 Term Loans that is due on May 29, 2020 (“Term Loan Interest Payment Date”) and (ii) Section 12.4(a) of the Credit Agreement solely as a result of the Borrower’s failure (or expected failure) to pay interest on the Loans (as defined in the 2016 Term Loan Agreement) pursuant to the 2016 Term Loan Agreement that is due on May 29, 2020 (the “Acknowledged Events of Default”); and
WHEREAS, notwithstanding the occurrence and continuance of the Acknowledged Events of Default, the Borrower has requested that the Administrative Agent and the Lenders agree to, and the Administrative Agent and the Forbearing Lenders (which constitute the Majority Lenders) have agreed, although under no obligation to do so, to, forbear from exercising their rights and remedies solely as a result of the Acknowledged Events of Default and solely on the express terms and subject to the conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.    Agreements and Acknowledgments.  
(a)    Each Credit Party acknowledges that the recitals set forth above are true and correct in all respects and admits that the occurrence of the Acknowledged Events of Default have resulted in, or shall, if and when they occur, result in, Events of Default under the Credit Agreement.
(b)    Amount of Obligations.  Each Credit Party acknowledges and agrees that (i) the aggregate unpaid principal balance of the 2017 Term Loans as of the date hereof is $1,300,000,000, (ii) the aggregate amount of accrued and unpaid interest on the 2017 Term Loans as of the Term Loan Interest Payment Date is $20,680,562.50 (the foregoing amounts in clauses (i) and (ii) hereafter collectively referred to as the “Current Outstanding Obligations”).  The foregoing amounts do not include other fees, expenses (including professional fees and expenses), and other Obligations and amounts which are chargeable or otherwise reimbursable under the Credit Agreement and the other Credit Documents or which are payable pursuant to this Agreement.  Neither the Borrower nor any other Credit Party has any rights of offset, defenses, claims or counterclaims with respect to the Current Outstanding Obligations or any of the other Obligations or any payment obligation under this Agreement, and each of

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the Credit Parties are jointly and severally obligated with respect thereto, in each case, in accordance with the terms of the applicable Credit Documents and, with respect to payment obligations hereunder, this Agreement. 
(c)    Acknowledged Events of Default.  Each Credit Party acknowledges and agrees that (i) each Acknowledged Event of Default is material in nature and constitutes (or, upon occurrence, will constitute) an Event of Default under the Credit Agreement, and (ii) as a result of the occurrence of such Events of Default, the Forbearing Lenders will, subject to the forbearance contemplated hereby, be entitled to accelerate the Obligations and to exercise all rights and remedies under the Credit Documents, applicable Law or otherwise, so long as such Acknowledged Event of Default is continuing.  The Borrower further acknowledges and agrees that the Administrative Agent and Forbearing Lenders are not in any way agreeing to waive such Acknowledged Events of Default as a result of this Agreement or the performance by the parties of their respective obligations hereunder.  Without limiting any other provision of this Agreement, each Credit Party further acknowledges and agrees that during the Forbearance Period (as defined below) and following any Forbearance Termination Event (as defined below), Events of Default shall be continuing, and the Credit Parties shall not, and shall not permit any Subsidiary to, take or cause any Person to take any action that is conditioned on no Default or Event of Default existing at the time of, or immediately after giving effect to, the taking of such action.
2.    Forbearance; Forbearance Default Rights and Remedies.  
(a)    Forbearance.  In reliance upon the representations, warranties and covenants of the Credit Parties contained in this Agreement, during the Forbearance Period, and without waiving the Acknowledged Events of Default or any other Default or Event of Default that may now exist or which may occur hereafter, each of the Administrative Agent and the Forbearing Lenders agrees that, subject to the terms and conditions of this Agreement, the Administrative Agent and the Forbearing Lenders shall forbear from exercising any remedies that it or they may have against the Borrower or any other Credit Party or their respective assets and properties solely as a result of the occurrence of the Acknowledged Events of Default.  Such forbearance does not apply to any Default, Event of Default (other than the Acknowledged Events of Default) or other failure by the Borrower or any other Credit Party to perform in accordance with the Credit Agreement or any other Credit Document (including, without limitation, this Agreement).  Notwithstanding the foregoing forbearance with respect to each Acknowledged Event of Default during the Forbearance Period, for the avoidance of doubt, an Event of Default, to the extent having occurred and continuing, shall continue to exist for all purposes under the Credit Agreement and the other Credit Documents.  
(b)    Effect of Forbearance Termination. Upon the termination of the Forbearance Period, the agreement of the Forbearing Lenders and the Administrative Agent hereunder to forbear as set forth in Section 2(a) above shall immediately terminate without the requirement of any demand, presentment, protest, or notice of any kind (including any written notice required by Article XII of the Credit Agreement or any other Credit Document), all of which are hereby waived by the Borrower and each other Credit Party.  The Borrower and each other Credit Party hereby agree that, after the Forbearance Termination Date, the Forbearing Lenders and the Administrative Agent may at any time, or from time to time, in their sole and absolute discretion, with respect to the Acknowledged Events of Default, exercise against any Credit Party (and its properties) any and all of their rights, remedies, powers and privileges under any or all of the Credit Agreement, any other Credit Document, applicable Law and/or equity, all of which rights, remedies, powers and privileges are fully reserved by each Forbearing Lender and the Administrative Agent.
(c)    Limitation on Forbearance Extension. Except as set forth herein, none of the Forbearing Lenders or the Administrative Agent shall have any obligation to extend the Forbearance

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Period, or enter into any other agreement, waiver, forbearance or amendment, and the Forbearing Lenders’ and the Administrative Agent’s agreement to permit any such extension, or enter into any other agreement, waiver, forbearance or amendment shall be subject to the sole discretion of the Majority Lenders (or, if required by Section 14.1 of the Credit Agreement, each Lender or affected Lender).  Any agreement by any Forbearing Lender or the Administrative Agent to enter into any other waiver, forbearance or amendment must be set forth in writing and signed by a duly authorized signatory of each of the Administrative Agent and the Majority Lenders (or, if required by Section 14.1 of the Credit Agreement, each Lender or affected Lender).  The Borrower and the other Credit Parties each acknowledge that the Forbearing Lenders and the Administrative Agent have not made any assurances concerning any possibility of an extension of the Forbearance Period or the entering into of any further waiver, forbearance or amendment.  For the avoidance of doubt, nothing herein shall prevent Lenders constituting the Majority Lenders or the Administrative Agent from agreeing to any further forbearance agreement.
(d)    Forbearance Termination Date.  The “Forbearance Termination Date” means the earlier of the following to occur: (a) any Forbearance Termination Event and (b) June 14, 2020 at 11:59 p.m. New York time, as such date may be extended in writing (which may be by email) by the Administrative Agent and the Forbearing Lenders, in each case in their sole discretion.  The “Forbearance Period” shall commence on the Forbearance Effective Date and shall terminate immediately and automatically upon the Forbearance Termination Date.  The occurrence of any of the following events or circumstances shall immediately and automatically constitute a “Forbearance Termination Event” following delivery of notice (including by email) to the Borrower by the Administrative Agent at the request of the Majority Lenders (and automatically upon the occurrence of an Event of Default under Section 12.5 of the Credit Agreement):
(i).    any Default or Event of Default (following 48 hours after delivery of notice (including by email) to the Borrower by the Administrative Agent or at the request of the Majority Lenders) under the Credit Agreement or any other Credit Document (other than the Acknowledged Events of Default);
(ii).    any material breach by the Borrower or any other Credit Party of any covenant, term or other provision of this Agreement;
(iii).    any representation, warranty or certification made or deemed made by the Borrower or any other Credit Party herein or which is contained in any certificate, document or financial or other statement furnished by the Borrower or any other Credit Party at any time under or in connection with this Agreement or otherwise shall be false or misleading in any material respect on the date as of which made, deemed made or furnished;
(iv).    the commencement of any action, suit, litigation, investigation or other proceeding against the Administrative Agent or any Lender by any of the Credit Parties, any Subsidiary thereof or entity controlled by, affiliated with, related to or under common control with any of the Credit Parties;
(v).    any payment, or setting aside of funds for the purpose of making any Restricted Payment or any other payment, or transfer of any value (including the payment of any fees, costs or expenses of any advisors) by the Borrower or any other Credit Party to any direct or indirect equity holder of any Credit Party or any Subsidiary (other than any such payment to any Credit Party);

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(vi).    any payment, or setting aside of funds for the purpose of making any payment, by any Credit Party or any Subsidiary, including with respect to interest, principal, fees, expenses, indemnification or otherwise, on account of or in connection with any Existing Senior Notes, any 2016 Term Loans, any Permitted Junior Indebtedness, any Permitted Additional Debt, any Permitted Pari Debt or any other Indebtedness secured by Liens on the Collateral that rank pari passu or junior in right of security with the Liens securing the Obligations or Indebtedness that is unsecured, other than regularly scheduled payments of agency fees of the Administrative Agent and Collateral Agent with respect to the Credit Documents and the administrative agent and collateral agent with respect to the 2016 Term Loan Documents;
(vii).    the entry by the Borrower or any other Credit Party or any Subsidiary into any transaction (including the incurrence of any Indebtedness), or the making by the Borrower or any other Credit Party or Subsidiary of any payment or transfer, in each case outside the ordinary course of business (it being understood and agreed, for the avoidance of doubt, that (a) the incurrence of any Indebtedness for borrowed money pursuant to Sections 11.1(i), (j), (k), (r), (v), (w), (x), (z), (aa), (bb), (cc) or (dd), (b) the making of any Disposition under Section 11.4(a)(vi) and (xv) and (c) the making of any Investment, other than any Investment or series of related Investments that do not exceed $500,000 in the aggregate during the Forbearance Period, pursuant to Section 11.5(b)(iii), (vi), (viii), (x), (xiv), (xvii) (other than any non-cash Investment made in the ordinary course of business pursuant to Section 11.5(b)(xvii) existing on, or for which an obligation to make such Investment is existing on, the Forbearance Effective Date), (xviii), (xx) (other than any Investment pursuant to Section 11.5(b)(xx) with respect to any ordinary course intercompany cash or treasury management arrangements), (xxi) or (xxii), in each case by any Credit Party or any Subsidiary, shall all be deemed to be made outside of the ordinary course of business);
(viii).    any amendment, waiver, supplement or other modification to any employment agreement or employee compensation plan, or the entry by the Borrower, any other Credit Party or any Subsidiary into any new employment agreement or employee compensation plan, or the payment of any amount contemplated by any employment agreement or employee compensation plan before the date on which such amount become due and payable pursuant to the terms of the such agreements or plans, as applicable, or the payment of any bonus, incentive, retention, severance, change of control or termination payments pursuant to the terms of such agreements or plans, as applicable, with any such Key Employee or Director (it being understood that “Key Employee or Director” means any director or officer of any Credit Party or Subsidiary or management personnel that is employed or to be employed by any Credit Party or Subsidiary, in each case, that has or will be entitled to (A) annual total cash compensation in excess of $300,000 or (B) in the event of the payment of severance or termination payments, cash severance in excess of $300,000);
(ix).    the failure by the Borrower, for any three (3) consecutive Business Days during the Forbearance Period, to maintain aggregate book cash balances of at least $48,000,000;
(x).    any non-Forbearing Lender under the Credit Agreement shall commence a legal proceeding against any Credit Party or any Subsidiary or set off against any of their respective property, in each case, with respect to enforcement of the Credit Agreement or the obligations thereunder;

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(xi).    the failure by the Borrowers to pay, within two (2) Business Days after the receipt of an invoice therefor, the reasonable and documented fees and expenses of (a) Davis Polk & Wardwell LLP (“Davis Polk”), Evercore Inc. (“Evercore”), Haynes and Boone, LLP (“Haynes and Boone”), Cox, Castle & Nicholson LLP (“Cox Castle”) and Trimeric Corporation (“Trimeric”) (collectively, with Davis Polk, Evercore, Haynes and Boone, Cox Castle, Trimeric and any other professionals retained by the ad hoc Lender group represented by Davis Polk and Evercore (the “Ad Hoc Lender Group” and such professionals, the “Ad Hoc Lender Group Advisors”) or (b) the Administrative Agent, Emmet, Marvin & Martin LLP, and any other professionals retained by the Administrative Agent (including, without limitation, with respect to foreign collateral or local matters), (collectively, the “Creditor Advisors”), in each case in accordance with this Agreement, the Credit Documents and/or the Creditor Advisors’ applicable engagement letters, fee letters or other reimbursement agreements;
(xii).    the failure by the Borrower to request a current copy of the Register and to use commercially reasonable efforts to deliver such copy to Davis Polk, in each case promptly upon request;
(xiii).    the failure by the Borrower to provide written notice to Davis Polk of (A) receipt of any material notice or correspondence (whether written or oral) from any counterparty to a contract or any customer that is outside the ordinary course of business and (B) receipt of any written notice of any proceeding commenced, or, to the actual knowledge of the Borrower, threatened against any Credit Parties or any of their Subsidiaries;
(xiv).    any lender or any of their affiliates under the First Lien First Out Credit Agreement, the 2016 Term Loan Agreement, the indenture governing the Existing Second Lien Notes or the indenture governing the 2021 Notes and the 2024 Notes or any agent, trustee or representative on behalf of any such lender or affiliate shall accelerate the obligations under the First Lien First Out Credit Agreement, the 2016 Term Loan Agreement, the indenture governing the Existing Second Lien Notes or the indenture governing the 2021 Notes or the 2024 Notes, or commence a legal proceeding against any Credit Party or any Subsidiary or set off against any of their respective property, in each case, with respect to enforcement of the First Lien First Out Credit Documents, the 2016 Term Loan Documents, documents governing the Existing Second Lien Notes or documents governing the 2021 Notes or the 2024 Notes or the obligations thereunder;
(xv).    the failure by the Borrower to deliver a copy to the Ad Hoc Group Advisors of, (i) any written proposal, counterproposal, offer, bid, term sheet or agreement (each, a “Proposal”) involving (x) a settlement of claims by or against Elk Hills Power LLC (“Elk Hills”) or any other transaction, sale, asset purchase, disposition, new money, investment, restructuring, reorganization, merger, amalgamation, acquisition, consolidation, dissolution, debt investment, equity investment, liquidation, tender offer, recapitalization, plan of reorganization, share exchange, business combination or similar transaction (any of the foregoing, a “Transaction”) with any third-party investor in the debt, equity, or other interests of Elk Hills  or (y) any Transaction involving ECR Corporate Holdings L.P., Ares Management LLC or any affiliate of either of them  (any of (x) or (y), a “JV Settlement Proposal”), (ii) any Proposal from holders of Existing Second Lien Notes, 2021 Notes or 2024 Notes concerning a Transaction with the Borrower, any Guarantor or Elk Hills (a “Junior Creditor Proposal”), (iii) any Proposal from or to the agent or any holder of indebtedness under the First Lien First Out Credit

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Agreement with respect to any Transaction or (iv) any other Proposal with respect to any Transaction involving the Borrower or any Guarantor, in each of cases (i), (ii), (iii) or (iv) within 24 hours of receipt by the Borrower or any Guarantor; or 
(xvi).    the Borrower or any Guarantor makes any JV Settlement Proposal or Junior Creditor Proposal without providing the Ad Hoc Group Advisors with 24 hours prior written notice (which shall include a copy thereof) of such JV Settlement Proposal or Junior Creditor Proposal, as applicable, and such prior notice of any modifications during negotiation thereof as may be reasonably practicable under the circumstances.
3.    Notice of Forbearance Termination Event.  Each Credit Party shall provide written notice to the Administrative Agent and to the Creditor Advisors promptly (and in any event within one Business Day) of its obtaining knowledge of the occurrence of any Forbearance Termination Event, which notice shall state that such event occurred and set forth, in reasonable detail, the facts and circumstances that gave rise to such event.  Such notice shall be delivered to:
The Administrative Agent
The Bank of New York Mellon Trust Company, N.A.
385 Rifle Camp Road, 3rd Floor
Woodland Park, NJ 07424
Attn: David M. Kerr (david.m.kerr@bnymellon.com ) 
With copies by electronic mail (which shall not constitute notice) to:
Emmet, Marvin & Martin, LLP
120 Broadway 32nd Floor
New York, NY 10271
Attn: Thomas A. Pitta (tpitta@emmetmarvin.com) 
and
Davis Polk & Wardwell LLP
450 Lexington Ave.
New York, NY 10014
Attn:  Damian S. Schaible (damian.schaible@davispolk.com), Angela Libby (angela.libby@davispolk.com) and Jonah A. Peppiatt (jonah.peppiatt@davispolk.com)
4.    Acknowledgment of Satisfaction. Nothing contained herein shall be deemed a waiver of (or otherwise affect the Administrative Agent or any Lender’s ability to enforce) any other Default or Event of Default under any of the Credit Documents, including (i) any Default or Event of Default as may now or hereafter exist and arise from or otherwise be related to any of the Acknowledged Events of Default (including any cross-default arising under the Credit Agreement by virtue of any matters resulting from the Acknowledged Events of Default), and (ii) any Default arising at any time after the Forbearance Effective Date and which is the same as or similar to the Acknowledged Events of Default.
5.    Financial Advisor. The Ad Hoc Lender Group, through its counsel Davis Polk, has retained Evercore as its financial advisor (the “Financial Advisor”) to monitor the Credit Parties’ and their respective Subsidiaries’ financial and operational performance. The Credit Parties and their respective Subsidiaries shall cooperate fully with the Financial Advisor and provide the Financial Advisor with reasonable access to their respective facilities, books and records, officers and consultants and any

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information reasonably requested by the Financial Advisor to perform the services within the scope of its engagement.
6.    Conditions.  The effectiveness of this Agreement is subject to the satisfaction of the following conditions precedent (the date on which such effectiveness occurs, the “Forbearance Effective Date”):
(a)    the Administrative Agent shall have received this Agreement duly executed by the Borrower, the Guarantors, the Administrative Agent and the Majority Lenders; 
(b)    the Administrative Agent shall have received a certificate of an Authorized Officer of the Borrower certifying that the representations and warranties of the Borrower set forth in Section 7 hereof are true and correct in all respects; 
(c)    the Administrative Agent and the Forbearing Lenders (and their respective advisors) shall have been paid all expenses required to be paid hereunder or under any other Credit Document to the extent invoiced at least two (2) Business Days prior to the Forbearance Effective Date;
(d)    receipt by the Administrative Agent of a forbearance agreement in form and substance reasonably acceptable to the Administrative Agent and the lenders party thereto (and their respective advisors) (i) under the 2016 Term Loan Agreement with respect to the interest payment due thereunder on May 29, 2020 and any other related defaults or events of default thereunder (such forbearance agreement, the “2016 Term Loan Forbearance Agreement”) and (ii) under the First Lien First Out Credit Agreement with respect to any cross event of default related to the interest payments due under the Credit Agreement and the 2016 Term Loan Agreement on May 29, 2020 and any other related defaults or events of default thereunder (such forbearance agreement, the “First Lien First Out Forbearance Agreement”); and
(e)    the Borrower shall have requested a current copy of the Register and, to the extent a copy of the Register is actually received by the Borrower prior to the satisfaction of all other conditions precedent to the Forbearance Effective Date, the Borrower shall have delivered such copy to Davis Polk.
7.    Representations and Warranties.  Each Credit Party hereby represents and warrants to the Administrative Agent as of the Forbearance Effective Date as follows:
(a)    the execution, delivery and performance by each Credit Party of this Agreement: (i) are within such Person’s corporate, limited liability company or company power, as applicable; (ii) have been duly authorized or approved by all necessary corporate, exempted company, limited liability company or company action, as applicable; (iii) do not contravene, violate, conflict with, or cause a breach or default under any provision of such Person’s organization documents; (iv) do not violate any Laws, or any order or decree of any court or Governmental Authority in any material respect; (v) do not require the consent or approval of any Governmental Authority, except consents or approvals with or by any Governmental Authority which have already been obtained, taken, given or made; and (vi) do not result in the creation of any Lien on any property of such Credit Party;
(b)    this Agreement has been duly executed and delivered by each Credit Party hereto and this Agreement constitutes a legal, valid and binding obligation of such Person enforceable against it in accordance with its respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar Laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability;

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(c)    after giving effect to this Agreement and the transactions contemplated hereby, each representation or warranty by any Credit Party contained in the Credit Agreement and the other Credit Documents (other than the representations and warranties set forth in (x) Section 9.20 of the Credit Agreement as it relates to the Acknowledged Events of Default, (y) Section 9.15 of the Credit Agreement and (z) solely with respect to circumstances or conditions disclosed to the Administrative Agent or the Forbearing Lenders prior to the Forbearance Effective Date, Section 9.9(c) of the Credit Agreement) are true or correct in all material respects (unless such representations and warranties are already qualified by materiality, Material Adverse Effect or a similar qualification, in which case they are true and correct in all respects) on and as of the Forbearance Effective Date with the same effect as though made on and as of such date (except where such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (unless such representations and warranties are already qualified by materiality, Material Adverse Effect or a similar qualification, in which case they are true and correct in all respects) as of such earlier date); 
(d)    no Default or Event of Default (other than the Acknowledged Events of Default) has occurred and is continuing or would result from the transactions contemplated by this Agreement;   
(e)    as of the date hereof, other than the First Lien First Out Forbearance Agreement and the 2016 Term Loan Forbearance Agreement, no Third Party Forbearance Agreement (as defined below) exists between any Credit Party and any party; and
(f)    as of the Forbearance Effective Date, there has been no change (i) in any Credit Party’s legal name or (ii) in the location of any Credit Party’s chief executive office, its principal place of business, any office in which it maintains books or records relating to Collateral owned by it or any of its offices or facilities at which Collateral owned by it is located (including the establishment of any such new office or facility), in each instance other than changes which have previously been disclosed in writing to the Administrative Agent. 
8.    Lender Calls.  The Borrower shall, at its own expense, facilitate and hold calls between Evercore and members of the Borrower’s executive management team and/or their advisors not less than once every week and shall permit any Lender to attend such calls.
9.    Default Rate and Continuation of Borrowings. On and after the date hereof and for so long as the Acknowledged Events of Default shall be continuing under the Credit Agreement, the Loans and the interest payable thereon shall accrue interest in the manner set forth in Sections 2.9(a) and (b) of the Credit Agreement, as applicable, and, solely during the Forbearance Period, notwithstanding Section 2.9(c) of the Credit Agreement, not at the Default Rate.  In addition, pursuant to Section 2.7(b) of the Credit Agreement, on and after the date of any Default or Event of Default, the Majority Lenders hereby elect that (i) no outstanding Dollar Borrowing may be converted into, or continued as, a LIBOR Loan and (ii) each LIBOR Loan shall be converted to an ABR Loan at the end of the Interest Period applicable thereto.  This Section 9 shall serve as notice to the Borrower from the Administrative Agent of the determination by the Majority Lenders to make such election pursuant to Section 2.7(b) of the Credit Agreement.
10.    More Favorable Terms. To the extent that any other forbearance, standstill or other similar agreement entered into by any Credit Party (any such agreement, a “Third Party Forbearance Agreement”), or any amendment to any Third Party Forbearance Agreement, in each case, entered into or agreed on or after the date of this Agreement and during the Forbearance Period, provides any benefit or right (including, without limitation, the benefit of a forbearance period of shorter duration than the Forbearance Period and the payment of any fees in connection with such forbearance) to any creditor party thereto that is more favorable than the benefits and rights provided to the Administrative Agent and

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the Forbearing Lenders under this Agreement, taking into account the terms and conditions of the underlying debt financing documents in effect with such creditor party, this Agreement shall be deemed to be amended so as to cause any such benefit or right to be incorporated into this Agreement concurrently with making any such benefit or right available, and on comparable terms as it is made available, to any such other creditor.
11.    No Modification.  Nothing contained herein shall be deemed to directly or indirectly, (a) create any obligation to continue to defer any enforcement action after the Forbearance Termination Date, (b) constitute a consent or waiver of any past, present or future violations, including Defaults and Events of Default, of any provisions of the Credit Agreement or any other Credit Documents, (c) constitute a waiver of compliance with any term or condition contained in the Credit Agreement or any of the other Credit Documents or (d) constitute a course of conduct or dealing among the parties for altering any Obligations or any other contract or instrument.  Except as expressly stated herein, the Lenders and the Administrative Agent reserve all of their respective rights, privileges, remedies and powers under the Credit Agreement, the other Credit Documents, applicable Law and/or equity, including without limitation, any rights that the Lenders (including the Forbearing Lenders) may have to charge interest at the Default Rate under the terms of the Credit Agreement and/or the other Credit Documents.  This Agreement shall not be deemed or construed to be a satisfaction, reinstatement, novation or release of the Credit Agreement or any other Credit Document.  The Credit Agreement and other Credit Documents remain unmodified and in full force and effect.  This Agreement shall constitute a Credit Document.
12.    Counterparts.  This Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Signature pages may be detached from multiple separate counterparts and attached to a single counterpart.  Delivery of an executed signature page of this Agreement by facsimile transmission or electronic transmission shall be as effective as delivery of a manually executed counterpart hereof.
13.    GOVERNING LAW.  THIS AGREEMENT IS SUBJECT TO THE PROVISIONS OF SECTIONS 14.12, 14.13 AND 14.15 OF THE CREDIT AGREEMENT RELATING TO GOVERNING LAW, SUBMISSION TO JURISDICTION AND WAIVERS OF JURY TRIAL, THE PROVISIONS OF WHICH ARE BY THIS REFERENCE INCORPORATED HEREIN IN FULL.
14.    Severability.  Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable Law, but if any provision of this Agreement shall be prohibited by or invalid under applicable Law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.
15.    Captions.  The captions and headings of this Agreement are for convenience of reference only and shall not affect the interpretation of this Agreement.
16.    Construction.  This Agreement and all other agreements and documents executed and/or delivered in connection herewith have been prepared through the joint efforts of all of the parties hereto. Neither the provisions of this Agreement or any such other agreements and documents nor any alleged ambiguity therein shall be interpreted or resolved against any party on the ground that such party or its counsel drafted this Agreement or such other agreements and documents, or based on any other rule of strict construction.  Each of the parties hereto represents and declares that such party has carefully read this Agreement and all other agreements and documents executed in connection therewith, and that such party knows the contents thereof and signs the same freely and voluntarily.  The parties hereto

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acknowledge that they have been represented by legal counsel of their own choosing in negotiations for and preparation of this Agreement and all other agreements and documents executed in connection herewith and that each of them has read the same and had their contents fully explained by such counsel and is fully aware of their contents and legal effect.
17.    Third Party Beneficiaries.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and thereto and their respective successors and assigns.  No Person other than the Credit Parties, the Administrative Agent, the Forbearing Lenders and, in the case of Section 21 hereof, the Released Parties, shall have any rights hereunder or be entitled to rely on this Agreement and all third-party beneficiary rights (other than the rights of the Released Parties under Section 21 hereof) are hereby expressly disclaimed.
18.    Majority Lender Direction.  The Forbearing Lenders hereby (i) instruct the Administrative Agent to comply with this Agreement to the extent specified herein and to take the other actions (or refrain from acting), in each case, as expressly contemplated hereby and (ii) acknowledge and agree that (x) the direction set forth herein constitutes a direction from the Majority Lenders and the Required Lenders under the provisions of Article XIII of the Credit Agreement and (y) all sections of Article XIII of the Credit Agreement shall apply to any and all actions (and inactions) taken by the Administrative Agent in accordance with such direction.
19.    Further Assurances.  Each of the Credit Parties hereby agrees to execute and deliver from time to time such other documents and take such other actions as may be reasonably requested in order to effectuate the terms hereof.
20.    Reaffirmation.  By its signature set forth below, each Credit Party hereby ratifies and confirms to the Administrative Agent and the Lenders that, after giving effect to this Agreement and the transactions contemplated hereby, each of the Credit Agreement, each Security Document and each other Credit Document to which such Credit Party is a party continues in full force and effect and is the legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws relating to or limiting creditors’ rights generally or by equitable principles and each Credit Party hereby ratifies and confirms each such Credit Document.  Except as expressly set forth herein, the execution of this Agreement shall not operate as a waiver of any right, power or remedy of the Administrative Agent or Lenders, constitute a waiver of any provision of any of the Credit Documents or serve to effect a novation of the Obligations.  Each Credit Party (i) acknowledges receipt of a copy of this Agreement and all other agreements, documents and instruments executed and/or delivered in connection herewith, (ii) consents to the terms and conditions of same without prejudice to any Credit Party’s liability pursuant to any of the Credit Documents, (iii) agrees and acknowledges that each of the Credit Documents remains in full force and effect, that such Credit Party’s obligations thereunder are without defense, setoff and counterclaim and that each of the Credit Documents is hereby ratified and confirmed, and (iv) ratifies and reaffirms each waiver of such Credit Party set forth in the Credit Documents to which it is a party.  Each Credit Party hereby acknowledges that it has reviewed and consents to the terms and conditions of this Agreement and the transactions contemplated hereby.  In addition, each Credit Party reaffirms in all respects the security interests and Liens granted by such Credit Party in and to the Collateral under the terms and conditions of the Collateral Documents to secure the Obligations and agrees that such security interests and Liens remain in full force and effect and are hereby ratified, reaffirmed and confirmed in all respects.
21.    Releases.  By its execution hereof and in consideration of the mutual covenants contained herein and other accommodations granted to the Credit Parties hereunder, each Credit Party, on behalf of itself and each of its Subsidiaries, and its or their successors, assigns and agents, hereby expressly forever

10

waives, releases and discharges any and all claims (including cross-claims, counterclaims, and rights of setoff and recoupment), causes of action (whether direct or derivative in nature), demands, suits, costs, expenses and damages (collectively, the “Claims”) any of them may, as a result of actions or inactions occurring on or prior to the Forbearance Effective Date, have or allege to have as of the date of this Agreement or at any time thereafter (and all defenses that may arise out of any of the foregoing) of any nature, description, or kind whatsoever, based in whole or in part on facts, whether actual, contingent or otherwise, now known, unknown, or subsequently discovered, whether arising in Law, at equity or otherwise, against the Administrative Agent or any Forbearing Lender, their respective affiliates, agents, principals, managers, managing members, members, stockholders, “controlling persons” (within the meaning of the United States federal securities laws), directors, officers, employees, attorneys, consultants, advisors, agents, trusts, trustors, beneficiaries, heirs, executors and administrators of each of the foregoing (collectively, the “Released Parties”) arising out of, or relating to, this Agreement, the Credit Agreement, the other Credit Documents and any or all of the actions and transactions contemplated hereby or thereby, including any actual or alleged performance or non-performance of any of the Released Parties hereunder or under the Credit Documents.  Each Credit Party hereby acknowledges that the agreements in this Section 21 are intended to be in full satisfaction of all or any alleged injuries or damages arising in connection with the Claims.  In entering into this Agreement, each Credit Party expressly disclaims any reliance on any representations, acts, or omissions by any of the Released Parties and hereby agrees and acknowledges that the validity and effectiveness of the releases set forth above does not depend in any way on any such representation, acts and/or omissions or the accuracy, completeness, or validity thereof.  The provisions of this Section 21 shall survive the termination or expiration of the Forbearance Period and the termination of the Credit Documents and the payment in full in cash of all Obligations of the Credit Parties under or in respect of the Credit Agreement and other Credit Documents and all other amounts owing thereunder.
[Reminder of page intentionally left blank]

11

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as of the date set forth above.
	
					
	 
	BORROWER:
	 

	 
	 
	 
	 
	 

	 
	CALIFORNIA RESOURCES CORPORATION

	 
	 
	 
	 
	 

	 
	By:
	/s/ Marshall D. Smith
	 

	 
	Name:
	Marshall D. Smith
	 

	 
	Title:
	Senior Executive Vice President and Chief Financial Officer
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	OTHER CREDIT PARTIES:
	 

	 
	CALIFORNIA HEAVY OIL, INC.

	 
	CALIFORNIA RESOURCES ELK HILLS, LLC

	 
	CALIFORNIA RESOURCES LONG BEACH, INC.

	 
	CALIFORNIA RESOURCES REAL ESTATE VENTURES, LLC

	 
	CALIFORNIA RESOURCES ROYALTY HOLDINGS, LLC

	 
	CALIFORNIA RESOURCES TIDELANDS, INC.

	 
	CALIFORNIA RESOURCES PETROLEUM CORPORATION

	 
	CALIFORNIA RESOURCES PRODUCTION CORPORATION

	 
	CRC CONSTRUCTION SERVICES, LLC

	 
	CRC MARKETING, INC.

	 
	CRC SERVICES, LLC

	 
	SOCAL HOLDING, LLC

	 
	SOUTHERN SAN JOAQUIN PRODUCTION, INC.

	 
	THUMS LONG BEACH COMPANY

	 
	 
	 
	 
	 

	 
	By:
	/s/ Marshall D. Smith
	 

	 
	Name:
	Marshall D. Smith
	 

	 
	Title:
	Senior Executive Vice President and Chief Financial Officer
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	CALIFORNIA RESOURCES COLES LEVEE, LLC

	 
	 
	 
	 
	 

	 
	By:
	/s/ Marshall D. Smith
	 

	 
	Name:
	Marshall D. Smith
	 

	 
	Title:
	Senior Executive Vice President and Chief Financial Officer
	 

[Signature Page to Forbearance Agreement (1.25L)]

	
					
	 
	CALIFORNIA RESOURCES COLES LEVEE, L.P.

	 
	 
	 
	 
	 

	 
	By:
	/s/ Marshall D. Smith
	 

	 
	Name:
	Marshall D. Smith
	 

	 
	Title:
	Senior Executive Vice President and Chief Financial Officer
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	CALIFORNIA RESOURCES WILMINGTON, LLC

	 
	 
	 
	 
	 

	 
	By:
	/s/ Marshall D. Smith
	 

	 
	Name:
	Marshall D. Smith
	 

	 
	Title:
	Senior Executive Vice President and Chief Financial Officer of California Resources Tidelands, Inc., its sole member
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	TIDELANDS OIL PRODUCTION COMPANY LLC

	 
	 
	 
	 
	 

	 
	By:
	/s/ Marshall D. Smith
	 

	 
	Name:
	Marshall D. Smith
	 

	 
	Title:
	Senior Executive Vice President and Chief Financial Officer
	 

[Signature Page to Forbearance Agreement (1.25L)]

	
					
	 
	ADMINISTRATIVE AGENT:
	 

	 
	 
	 
	 
	 

	 
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

	 
	 
	 
	 
	 

	 
	By:
	/s/ Dennis J. Roemlein
	 

	 
	Name:
	Dennis J. Roemlein
	 

	 
	Title:
	Vice President
	 

[Signature Page to Forbearance Agreement (1.25L)]

LENDER:
[*****]

[Signature Page to Forbearance Agreement (1.25L)]EX-4.1

 Exhibit 4.1 

WATERS CORPORATION 
 2020
EQUITY INCENTIVE PLAN 
  

	1.	 DEFINED TERMS 

Exhibit A, which is incorporated by reference, defines certain terms used in the Plan and includes certain operational rules related to
those terms. 
  

	2.	 PURPOSE 

The Plan has been established to advance the interests of the Company by providing for the grant to Participants of Stock and Stock-based
Awards. 
  

	3.	 ADMINISTRATION 

The Plan will be administered by the Administrator. The Administrator has discretionary authority, subject only to the express provisions of
the Plan, to interpret the Plan; to determine eligibility for and grant Awards; to determine the exercise price, base value from which appreciation is measured, or purchase price, if any, applicable to any Award, to determine, modify, accelerate or
waive the terms and conditions of any Award; to determine the form of settlement of Awards (whether in cash, shares of Stock, other Awards or other property); to prescribe forms, rules and procedures relating to the Plan and Awards; and to otherwise
do all things necessary or desirable to carry out the purposes of the Plan or any Award. Determinations of the Administrator made with respect to the Plan or any Award are conclusive and bind all persons. 

 

	4.	 LIMITS ON AWARDS UNDER THE PLAN 

(a) Number of Shares. Subject to adjustment as provided in Section 7(b) below, the number of shares of Stock that may be
issued in satisfaction of Awards under the Plan is (i) 4,725,000 shares of Stock, plus (ii)(A) the number of shares of Stock available for issuance under the Prior Plan as of the Date of Adoption, plus (B) the number of shares of Stock
underlying awards under the Prior Plan that on or after the Date of Adoption expire or terminate or are surrendered without the delivery of shares of Stock, are forfeited to, or repurchased by, the Company, or otherwise become available again for
grant under a Prior Plan in accordance with its terms (in the case of this subclause (ii), not to exceed 3,772,232 shares of Stock in the aggregate)(collectively, the “Share Pool”). Up to 2,500,000 of the shares of Stock from the
Share Pool may be issued in satisfaction of ISOs, but nothing in this Section 4(a) will be construed as requiring that any, or any fixed number of, ISOs be granted under the Plan. 

(b) Share Counting. The Share Pool will be reduced upon issuance of an Award under the Plan by the maximum number of
shares of Stock underlying the Award. For purposes of the Share Pool and determining the number of Shares of Stock underlying awards under the Prior Plan that become available for grant under the Plan, each share of Stock underlying an Option or SAR
will reduce or increase, as applicable, the Share Pool by one share of Stock and each share of Stock underlying any other type of Award will reduce or increase, as applicable, the Share Pool by two shares of Stock. The Share Pool shall be increased
by any shares of Stock underlying any portion of an Award that is settled in cash or that expires, becomes unexercisable, terminates or is forfeited to or repurchased by the Company without the issuance (or retention, in the case of Restricted Stock
or Unrestricted Stock) of Stock, except that the Share Pool will not be increased by (i) the number of shares of Stock withheld by the Company in payment of the exercise price or purchase price of an Award or in satisfaction of tax withholding
requirements with respect to an Award or (ii) the shares of Stock underlying any portion of a SAR that is settled in cash. For the avoidance of doubt, the Share Pool will not be increased by any shares of Stock delivered under the Plan that are
subsequently repurchased using proceeds directly attributable to Stock Option exercises. The limits set forth in this Section 4(a) will be construed to comply with the applicable requirements of Section 422. 

  
 1 

 (c) Substitute Awards. The Administrator may grant Substitute Awards under the
Plan. To the extent consistent with the requirements of Section 422 and the regulations thereunder and other applicable legal requirements (including applicable stock exchange requirements), shares of Stock issued in respect of Substitute
Awards will be in addition to and will not reduce the Share Pool. Notwithstanding the foregoing or anything in Section 4 (a) above to the contrary, if any Substitute Award is settled in cash or expires, becomes unexercisable, terminates or is
forfeited to or repurchased by the Company without the issuance (or retention, in the case of Restricted Stock or Unrestricted Stock) of Stock, the shares of Stock previously subject to such Award will not increase the Share Pool or otherwise be
available for future issuance under the Plan. The Administrator will determine the extent to which the terms and conditions of the Plan apply to Substitute Awards, if at all, provided, however, that Substitute Awards will not be
subject to the limits described in Section 4(e) below. 
 (d) Type of Shares. Stock issued by the Company under the Plan
may be authorized but unissued Stock, treasury Stock or previously issued Stock acquired by the Company. No fractional shares of Stock will be issued under the Plan. 

(e) Individual Limits. No person may be granted Awards in any calendar year with respect to more than 2,000,000 shares of Stock.
In applying the foregoing limit, (i) each share of Stock underlying an Award will be counted as one share of Stock, regardless of the type of Award, and (ii) the number of shares of Stock underlying any Award will be determined based on
the maximum number of shares of Stock that may be issued, or the value of which may be paid in cash or other property, assuming maximum payout levels. 
  

	5.	 ELIGIBILITY AND PARTICIPATION 

The Administrator will select Participants from among Employees and Directors of, and consultants to, the Company and its Affiliates.
Eligibility for ISOs is limited to individuals described in the first sentence of this Section 5 who are employees of the Company or of a “parent corporation” or “subsidiary corporation” of the Company as those terms are
defined in Section 424 of the Code. Eligibility for Stock Options, other than ISOs, and SARs is limited to individuals described in the first sentence of this Section 5 who are providing direct services on the date of grant of the Award to
the Company or to a subsidiary of the Company that would be described in the first sentence of Section 1.409A-1(b)(5)(iii)(E) of the Treasury Regulations. 

 

	6.	 RULES APPLICABLE TO AWARDS (a) All Awards. 

(a) All Awards. 

(1) Award Provisions. The Administrator will determine the terms and conditions of all Awards, subject to the limitations
provided herein. No term of an Award shall provide for automatic “reload” grants of additional Awards upon the exercise of an Option or SAR. By accepting (or, under such rules as the Administrator may prescribe, being deemed to have
accepted) an Award, the Participant agrees (or will be deemed to have agreed) to the terms and conditions of the Award and the Plan. Notwithstanding any provision of the Plan to the contrary, Substitute Awards may contain terms and conditions that
are inconsistent with the terms and conditions specified herein, as determined by the Administrator. 
 (2) Term of Plan. No
Awards may be made after ten years from the Date of Adoption, but previously granted Awards may continue beyond that date in accordance with their terms. 

(3) Transferability. Neither ISOs nor, except as the Administrator otherwise expressly provides in accordance with the
third sentence of this Section 6(a)(3), other Awards may be transferred other than by will or by the laws of descent and distribution. During a Participant’s lifetime, ISOs and, except as the Administrator otherwise expressly provides in
accordance with the third sentence of this Section 6(a)(3), SARs and NSOs may be exercised only by the Participant. The Administrator may permit the gratuitous transfer (i.e., transfer not for value) of Awards other than ISOs, subject to
applicable securities and other laws and such terms and conditions as the Administrator may determine. 
 (4) Vesting;
Exercisability. The Administrator will determine the time or times at which an Award vests or becomes exercisable and the terms and conditions on which a Stock Option or SAR remains exercisable. Without limiting the foregoing, the
Administrator may at any time accelerate the vesting and/or exercisability of an Award (or any portion thereof), regardless of any adverse or potentially adverse tax or other consequences resulting from such acceleration. Unless the Administrator
expressly provides otherwise, however, the following rules will apply if a Participant’s Employment ceases: 

  
 2 

 (A) Except as provided in (B) and (C) below, immediately upon the cessation of
the Participant’s Employment, each Stock Option and SAR (or portion thereof) that is then held by the Participant or by the Participant’s permitted transferees, if any, will cease to be exercisable and will terminate, and each other Award
that is then held by the Participant or by the Participant’s permitted transferees, if any, to the extent not then vested, will be forfeited. 

(B) Subject to (C) and (D) below, each vested and unexercised Stock Option and SAR (or portion thereof) held by the Participant
or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment, to the extent then exercisable, will remain exercisable for the lesser of (i) a period of ninety (90) days
following such cessation of Employment or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate. 

(C) Subject to (D) below, each vested and unexercised Stock Option and SAR (or portion thereof) held by a Participant or the
Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment due to his or her death or by the Company due to his or her Disability, to the extent then exercisable, will remain exercisable
for the lesser of (i) the one-year period ending on the first anniversary of such cessation of employment or (ii) the period ending on the latest date on which such Stock Option or SAR could have
been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate. 
 (D) All Awards (whether or
not vested or exercisable) held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment will immediately terminate upon such cessation of Employment if the
termination is for Cause or occurs in circumstances that in the determination of the Administrator would have constituted grounds for the Participant’s Employment to be terminated for Cause (in each case, without regard to the lapsing of any
required notice or cure periods in connection therewith). 
 (5) Recovery of Compensation; Other Policies. The Administrator
may provide in any case that any outstanding Award (whether or not vested or exercisable), the proceeds from the exercise or disposition of any Award or Stock acquired under any Award and any other amounts received in respect of any Award or Stock
acquired under any Award will be subject to forfeiture and disgorgement to the Company, with interest and other related earnings, if the Participant to whom the Award was granted is not in compliance with any provision of the Plan or any applicable
Award or any non-competition, non-solicitation, no-hire, non-disparagement,
confidentiality, invention assignment, or other restrictive covenant by which he or she is bound. Each Award will be subject to any policy of the Company or any of its Affiliates that relates to trading on
non-public information and permitted transactions with respect to shares of Stock, including limitations on hedging and pledging. In addition, each Award will be subject to any policy of the Company or any of
its Affiliates that provides for forfeiture, disgorgement, or clawback with respect to incentive compensation that includes Awards under the Plan and will be further subject to forfeiture and disgorgement to the extent required by law or applicable
stock exchange listing standards, including, without limitation, Section 10D of the Exchange Act. Each Participant, by accepting or being deemed to have accepted an Award under the Plan, agrees (or will be deemed to have agreed) to the terms of
this Section 6(a)(5) and any clawback, recoupment or similar policy of the Company or any of its Affiliates and further agrees (or will be deemed to have further agreed) to cooperate fully with the Administrator, and to cause any and all
permitted transferees of the Participant to cooperate fully with the Administrator, to effectuate any forfeiture or disgorgement described in this Section 6(a)(5). Neither the Administrator nor the Company nor any other person, other than the
Participant and his or her permitted transferees, if any, will be responsible for any adverse tax or other consequences to a Participant or his or her permitted transferees, if any, that may arise in connection with this Section 6(a)(5). 

(6) Taxes. The grant of an Award and the issuance, delivery, vesting and retention of Stock, cash or other property under an
Award are conditioned upon the full satisfaction by the Participant of all tax and 

  
 3 

 
other withholding requirements with respect to the Award. The Administrator will prescribe such rules for the withholding of taxes and other amounts with respect to an Award as it deems
necessary. Without limitation to the foregoing, the Company or any of its Affiliates will have the authority and the right to deduct or withhold (by any means set forth herein or in an Award agreement), or require a Participant to remit to the
Company or one of its Affiliates, an amount sufficient to satisfy all U.S. and non-U.S. federal, state and local income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to participation in the Plan and legally applicable to the Participant and required by law to be withheld (including any amount deemed by the Company, in its discretion, to be an
appropriate charge to the Participant even if legally applicable to the Company or one of its Affiliates). The Administrator, in its sole discretion, may hold back shares of Stock from an Award or permit a Participant to tender previously-owned
shares of Stock in satisfaction of tax or other withholding requirements (but not in excess of the maximum withholding amount consistent with the Award being subject to equity accounting treatment under the Accounting Rules). Any amounts withheld
pursuant to this Section 6 (a)(6) will be treated as though such amounts had been made directly to the Participant. In addition, the Company may, to the extent permitted by law, deduct any such tax and other withholding amounts from any payment
of any kind otherwise due to a Participant from the Company or any of its Affiliates. 
 (7) Dividend Equivalents. The
Administrator may provide for the payment of amounts (on terms and subject to conditions established by the Administrator) in lieu of cash dividends or other cash distributions with respect to Stock subject to an Award whether or not the holder of
such Award is otherwise entitled to share in the actual dividend or distribution in respect of such Award; provided, however, that (a) dividends or dividend equivalents relating to an Award that, at the dividend payment date,
remains subject to a risk of forfeiture (whether service-based or performance-based) shall be subject to the same risk of forfeiture as applies to the underlying Award and (b) no dividends or dividend equivalents shall be payable with respect
to Options or SARs. Any entitlement to dividend equivalents or similar entitlements will be established and administered either consistent with an exemption from, or in compliance with, the applicable requirements of Section 409A. 

(8) Rights Limited. Nothing in the Plan or any Award will be construed as giving any person the right to be granted an Award or
to continued employment or service with the Company or any of its Affiliates, or any rights as a stockholder except as to shares of Stock actually issued under the Plan. The loss of existing or potential profit in any Award will not constitute an
element of damages in the event of a termination of a Participant’s Employment for any reason, even if the termination is in violation of an obligation of the Company or any of its Affiliates to the Participant. 

(9) Coordination with Other Plans. Shares of Stock and/or Awards under the Plan may be issued or granted in tandem with, or in
satisfaction of or substitution for, other Awards under the Plan or awards made under other compensatory plans or programs of the Company or any of its Affiliates. For example, but without limiting the generality of the foregoing, awards under other
compensatory plans or programs of the Company or any of its Affiliates may be settled in Stock (including, without limitation, Unrestricted Stock) under the Plan if the Administrator so determines, in which case the shares delivered will be treated
as awarded under the Plan (and will reduce the Share Pool in accordance with the rules set forth in Section 4 above). 
 (10)
Section 409A. 
 (A) Without limiting the generality of Section 11(b) below, each Award will contain such
terms as the Administrator determines and will be construed and administered, such that the Award either qualifies for an exemption from the requirements of Section 409A or satisfies such requirements. 

(B) Notwithstanding anything to the contrary in the Plan or any Award agreement, the Administrator may unilaterally amend, modify or
terminate the Plan or any outstanding Award, including, but not limited to, changing the form of the Award, if the Administrator determines that such amendment, modification or termination is necessary or desirable to avoid the imposition of an
additional tax, interest or penalty under Section 409A. 
 (C) If a Participant is determined on the date of the
Participant’s termination of Employment to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, then, with regard to any payment that is considered nonqualified deferred compensation
under Section 409A, to 

  
 4 

 
the extent applicable, payable on account of a “separation from service”, such payment will be made or provided on the date that is the earlier of (i) the first business day
following the expiration of the six-month period measured from the date of such “separation from service” and (ii) the date of the Participant’s death (the “Delay Period”).
Upon the expiration of the Delay Period, all payments delayed pursuant to this Section 6(a)(10)(C) (whether they would have otherwise been payable in a single lump sum or in installments in the absence of such delay) will be paid, without
interest, on the first business day following the expiration of the Delay Period in a lump sum and any remaining payments due under the Award will be paid in accordance with the normal payment dates specified for them in the applicable Award
agreement. 
 (D) For purposes of Section 409A, each payment made under the Plan or any Award will be treated as a separate payment.

 (E) With regard to any payment considered to be nonqualified deferred compensation under Section 409A, to the extent applicable,
that is payable upon a change in control of the Company or other similar event, to the extent required to avoid the imposition of any additional tax, interest or penalty under Section 409A, no amount will be payable unless such change in control
constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations. 
 (b)
Stock Options and SARs. 
 (1) Time and Manner of Exercise. Unless the Administrator expressly provides otherwise,
no Stock Option or SAR will be deemed to have been exercised until the Administrator receives a notice of exercise in a form acceptable to the Administrator that is signed by the appropriate person and accompanied by the payment required under the
Award. The Administrator may limit or restrict the exercisability of any Stock Option or SAR in its discretion, including in connection with any Covered Transaction. Any attempt to exercise a Stock Option or SAR by any person other than the
Participant will not be given effect unless the Administrator has received such evidence as it may require that the person exercising the Award has the right to do so. 

(2) Exercise Price. The exercise price (or the base value from which appreciation is to be measured) per share of each Award
requiring exercise must be no less than 100% (in the case of an ISO granted to a 10-percent stockholder within the meaning of Section 422(b)(6) of the Code, 110%) of the Fair Market Value of a share of Stock, determined as of the date of grant of
the Award, or such higher amount as the Administrator may determine in connection with the grant. 
 (3) Payment of Exercise
Price. Where the exercise of an Award (or portion thereof) is to be accompanied by a payment, payment of the exercise price must be made by cash or check acceptable to the Administrator or, if so permitted by the Administrator and if legally
permissible, (i) through the delivery of previously acquired unrestricted shares of Stock, or the withholding of unrestricted shares of Stock otherwise issuable upon exercise, in either case, that have a Fair Market Value equal to the exercise
price; (ii) through a broker-assisted cashless exercise program acceptable to the Administrator; (iii) by other means acceptable to the Administrator; or (iv) by any combination of the foregoing permissible forms of payment. The delivery of
previously acquired shares in payment of the exercise price under clause (i) above may be accomplished either by actual delivery or by constructive delivery through attestation of ownership, subject to such rules as the Administrator may prescribe.

 (4) Maximum Term. The maximum term of Stock Options and SARs must not exceed 10 years from the date of grant (or five years
from the date of grant in the case of an ISO granted to a 10-percent stockholder described in Section 6(b)(2) above). 
 (5) No
Repricing. Except in connection with a corporate transaction involving the Company (which term includes, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, combination or exchange of shares) or as otherwise contemplated by Section 7 below, the Company may not, without obtaining stockholder approval, (i) amend the terms of outstanding Stock Options or SARs to reduce
the exercise price or base value of such Stock Options or SARs; (ii) cancel outstanding Stock Options or SARs in exchange for Stock Options or SARs that have an exercise price or base value that is less than the exercise price or base value of the
original Stock Options or SARs; or (iii) cancel outstanding Stock Options or SARs that have an exercise price or base value greater than the Fair Market Value of a share of Stock on the date of such cancellation in exchange for cash or other
consideration. 

  
 5 

	7.	 EFFECT OF CERTAIN TRANSACTIONS 

(a) Covered Transactions. Except as otherwise expressly provided in an Award or other agreement or by the
Administrator, the following provisions will apply in the event of a Covered Transaction: 
 (1) Assumption or Substitution. In
the event of a Covered Transaction, each unvested Award (or portion thereof) that is outstanding as of the consummation of the Covered Transaction that is eligible to vest based on performance shall be deemed to be earned at target performance
levels and shall thereafter be eligible to vest solely based on continued Employment. Each such Award (or portion thereof), and each unvested Award (or portion thereof) that is outstanding as of the consummation of the Covered Transaction that is
eligible to vest solely based on continued Employment, shall be assumed, continued or substituted for by the acquiror or survivor or an affiliate of the acquiror or survivor with an award that substantially preserves the value of the Award (or
portion thereof) as of the consummation of the Covered Transaction and vests on the same schedule as the Award so assumed, continued or substituted for; provided, that, if within two (2) years following the consummation of the Covered
Transaction (other than a Covered Transaction described in clause (a)(1) of the definition thereof), a Participant’s Employment is terminated by the Company or any successor thereof for any reason other than Cause or, if a Participant is party
to a then-effective employment or severance-benefit agreement with the Company or any of its Affiliates that contains a definition of “Good Reason,” if the Participant resigns for Good Reason (as defined in such agreement, such Award or
any award granted in substitution therefor (or portion thereof) shall vest in full. 
 (2) Acceleration. Each unvested
Award that is outstanding as of the consummation of a Covered Transaction that is not assumed, continued or substituted for as provided in Section 7(a)(1) above shall vest in full in connection with the consummation of the Covered Transaction
on a basis that permits the applicable Participant to participate in the Covered Transaction as a stockholder of the Company. 
 (3)
Cash-Out of Awards. Subject to Section 7(a)(5) below, the Administrator may provide for payment (a “cash-out”), with respect to some
or all Awards that are not assumed, continued or substituted for as described in Section 7(a)(1) above or any portion thereof (including only the vested portion thereof, with the unvested portion terminating as provided in Section 7(a)(4)
below), equal in the case of each applicable Award or portion thereof to the excess, if any, of (i) the fair market value of a share of Stock multiplied by the number of shares of Stock subject to the Award or such portion, minus (ii) the
aggregate exercise or purchase price, if any, of such Award or portion thereof (or, in the case of a SAR, the aggregate base value above which appreciation is measured), in each case, on such payment and other terms and subject to such conditions
(which need not be the same as the terms and conditions applicable to holders of Stock generally) as the Administrator determines, including that any amounts paid in respect of such Award in connection with the Covered Transaction be placed in
escrow or otherwise made subject to such restrictions as the Administrator deems appropriate. For the avoidance of doubt, if the per share exercise or purchase price (or base value) of an Award or portion thereof is equal to or greater than the fair
market value of one share of Stock, such Award or portion may be cancelled with no payment due hereunder or otherwise in respect thereof. 

(4) Termination of Awards upon Consummation of Covered Transaction. Except as the Administrator may otherwise determine,
each Award will automatically terminate (and in the case of outstanding shares of Restricted Stock, will automatically be forfeited) immediately upon the consummation of the Covered Transaction, other than (i) any Award that is assumed,
continued or substituted for pursuant to Section 7(a)(1) above and (ii) any Award that by its terms, or as a result of action taken by the Administrator, continues following the Covered Transaction. 

(5) Additional Limitations. Any share of Stock and any cash or other property or other award delivered pursuant to
Section 7(a) (1), Section 7(a)(2) or Section 7(a)(3) above with respect to an Award may, in the discretion of the Administrator, contain such restrictions, if any, as the Administrator deems appropriate, including to reflect any
performance or other vesting conditions to which the Award was subject and that did not lapse (and were not satisfied) in connection with the Covered Transaction. For purposes of the immediately 

  
 6 

 
preceding sentence, an acceleration under Section 7(a)(2) above or a cash-out under Section 7(a)(3) above will not, in and of itself, be treated
as the lapsing (or satisfaction) of a performance or other vesting condition. In the case of Restricted Stock that does not vest and is not forfeited in connection with the Covered Transaction, the Administrator may require that any amounts
delivered, exchanged or otherwise paid in respect of such Stock in connection with the Covered Transaction be placed in escrow or otherwise made subject to such restrictions as the Administrator deems appropriate to carry out the intent of the Plan.

 (6) Uniform Treatment. For the avoidance of doubt, the Administrator need not treat Participants or Awards (or portions
thereof) in a uniform manner, and may treat different Participants and/or Awards differently, in connection with a Covered Transaction. 

(b) Changes in and Distributions with Respect to Stock. 

(1) Basic Adjustment Provisions. In the event of a stock dividend, stock split or combination of shares (including a reverse
stock split), recapitalization or other change in the Company’s capital structure that constitutes an equity restructuring within the meaning of the Accounting Rules, the Administrator will make appropriate adjustments to the Share Pool, the
individual limits described in Section 4(e) above, the number and kind of shares of stock or securities underlying Awards then outstanding or subsequently granted, any exercise or purchase prices (or base values) relating to Awards and any
other provision of Awards affected by such change. 
 (2) Certain Other Adjustments. The Administrator may also make
adjustments of the type described in Section 7(b)(1) above to take into account distributions to stockholders other than those provided for in Sections 7(a) and 7(b)(1) above, or any other event, if the Administrator determines that adjustments
are appropriate to avoid distortion in the operation of the Plan or any Award. 
 (3) Continuing Application of Plan Terms.
References in the Plan to shares of Stock will be construed to include any stock or securities resulting from an adjustment pursuant to this Section 7. 
  

	8.	 LEGAL CONDITIONS ON DELIVERY OF STOCK 

The Company will not be obligated to issue any shares of Stock pursuant to the Plan or to remove any restriction from shares of Stock
previously issued under the Plan until: (i) the Company is satisfied that all legal matters in connection with the issuance of such shares have been addressed and resolved; (ii) if the outstanding Stock is at the time of issuance listed on
any stock exchange or national market system, the shares to be issued have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and (iii) all conditions of the Award have been satisfied or waived.
The Company may require, as a condition to the exercise of an Award or the issuance of shares of Stock under an Award, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of the Securities Act of
1933, as amended, or any applicable state or non-U.S. securities law. Any Stock issued under the Plan will be evidenced in such manner as the Administrator determines appropriate, including book-entry
registration or delivery of stock certificates. In the event that the Administrator determines that stock certificates will be issued in connection with Stock issued under the Plan, the Administrator may require that such certificates bear an
appropriate legend reflecting any restriction on transfer applicable to such Stock, and the Company may hold the certificates pending the lapse of the applicable restrictions. 

 

	9.	 AMENDMENT AND TERMINATION 

The Administrator may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time be permitted by
applicable law, and may at any time terminate the Plan as to any future grants of Awards; provided, however, that except as otherwise expressly provided in the Plan or the applicable Award, the Administrator may not, without the
Participant’s consent, alter the terms of an Award so as to affect materially and adversely the Participant’s rights under the Award, unless the Administrator expressly reserved the right to do so in the Plan or at the time the applicable
Award was granted. Any amendments to the Plan will be conditioned upon stockholder approval only to the extent, if any, such approval is required by applicable law (including the Code) or stock exchange requirements, as determined by the
Administrator. For the avoidance of doubt, without limiting the Administrator’s rights hereunder, no adjustment to any Award pursuant to the terms of Section 7 above will be treated as an amendment requiring a Participant’s consent.

  
 7 

	10.	 OTHER COMPENSATION ARRANGEMENTS 

The existence of the Plan or the grant of any Award will not affect the right of the Company or any of its Affiliates to grant any person
bonuses or other compensation in addition to Awards under the Plan. 
  

	11.	 MISCELLANEOUS 

(a) Waiver of Jury Trial. By accepting or being deemed to have accepted an Award under the Plan, each Participant waives (or will
be deemed to have waived), to the maximum extent permitted under applicable law, any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the Plan or any Award, or under any amendment, waiver, consent,
instrument, document or other agreement delivered or which in the future may be delivered in connection therewith, and agrees (or will be deemed to have agreed) that any such action, proceedings or counterclaim will be tried before a court and not
before a jury. By accepting or being deemed to have accepted an Award under the Plan, each Participant certifies that no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the
event of any action, proceeding or counterclaim, seek to enforce the foregoing waivers. Notwithstanding anything to the contrary in the Plan, nothing herein is to be construed as limiting the ability of the Company and a Participant to agree to
submit any dispute arising under the terms of the Plan or any Award to binding arbitration or as limiting the ability of the Company to require any individual to agree to submit such disputes to binding arbitration as a condition of receiving an
Award hereunder. 
 (b) Limitation of Liability. Notwithstanding anything to the contrary in the Plan or any Award, neither
the Company, nor any of its Affiliates, nor the Administrator, nor any person acting on behalf of the Company, any of its Affiliates, or the Administrator, will be liable to any Participant, to any permitted transferee, to the estate or beneficiary
of any Participant or any permitted transferee, or to any other person by reason of any acceleration of income, any additional tax, or any penalty, interest or other liability asserted by reason of the failure of an Award to satisfy the requirements
of Section 422 or Section 409A or by reason of Section 4999 of the Code, or otherwise asserted with respect to any Award. 

(c) Unfunded Plan. The Company’s obligations under the Plan are unfunded, and no Participant will have any right to
specific assets of the Company in respect of any Award. Participants will be general unsecured creditors of the Company with respect to any amounts due or payable under the Plan. 

 

	12.	 RULES FOR PARTICIPANTS SUBJECT TO NON-U.S. LAWS

 The Administrator may at any time and from time to time (including before or after an Award is granted) establish,
adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the Plan for Participants based outside of the U.S. and/or subject to the laws of countries other than the U.S., including by establishing one or more sub-plans, supplements or appendices under the Plan or any Award agreement for the purpose of complying or facilitating compliance with non-U.S. laws or taking advantage of
tax favorable treatment or for any other legal or administrative reason determined by the Administrator. Any such sub-plan, supplement or appendix may contain, in each case, (i) such limitations on the
Administrator’s discretion under the Plan and (ii) such additional or different terms and conditions, as the Administrator deems necessary or desirable and will be deemed to be part of the Plan but will apply only to Participants within
the group to which the sub-plan, supplement or appendix applies (as determined by the Administrator); provided, however, that no sub-plan, supplement or appendix, rule
or regulation established pursuant to this provision shall increase Share Pool or cause a violation of any U.S. law. 
  

	13.	 GOVERNING LAW 

(a) Certain Requirements of Corporate Law. Awards and shares of Stock will be granted, issued and administered consistent with
the requirements of applicable Delaware law relating to the issuance of stock and the consideration to be received therefor, and with the applicable requirements of the stock exchanges or other trading systems on which the Stock is listed or entered
for trading, in each case, as determined by the Administrator. 

  
 8 

 (b) Other Matters. Except as otherwise provided by the express terms of an
Award agreement, under a sub-plan described in Section 12 above or as provided in Section 13(a) above, the domestic substantive laws of the Commonwealth of Massachusetts govern the provisions of the
Plan and of Awards under the Plan and all claims or disputes arising out of or based upon the Plan or any Award under the Plan or relating to the subject matter hereof or thereof, without giving effect to any choice or conflict of laws provision or
rule that would cause the application of the domestic substantive laws of any other jurisdiction. 
 (c) Jurisdiction.
Subject to Section 13(a) above and except as may be expressly set forth in an Award agreement, by accepting (or being deemed to have accepted) an Award, each Participant agrees or will be deemed to have agreed to (i) submit irrevocably
and unconditionally to the jurisdiction of the federal and state courts located within the geographic boundaries of the United States District Court for the Commonwealth of Massachusetts for the purpose of any suit, action or other proceeding
arising out of or based upon the Plan or any Award; (ii) not commence any suit, action or other proceeding arising out of or based upon the Plan or any Award, except in the federal and state courts located within the geographic boundaries of
the United States District Court for the Commonwealth of Massachusetts; and (iii) waive, and not assert, by way of motion as a defense or otherwise, in any such suit, action or proceeding, any claim that he or she is not subject personally to
the jurisdiction of the above-named courts that his or her property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is
improper or that the Plan or any Award or the subject matter thereof may not be enforced in or by such court. 

  
 9 

 EXHIBIT A 

Definition of Terms 

The following terms, when used in the Plan, have the meanings and are subject to the provisions set forth below: 

“Accounting Rules”: Financial Accounting Standards Board Accounting Standards Codification Topic 718, or any successor
provision. 
 “Administrator”: The Compensation Committee, except that the Compensation Committee may delegate (i) to
one or more of its members (or one or more other members of the Board, including the full Board) such of its duties, powers and responsibilities as it may determine; (ii) to one or more officers of the Company the power to grant Awards to the
extent permitted by applicable law; and (iii) to such Employees or other persons as it determines such ministerial tasks as it deems appropriate. For purposes of the Plan, the term “Administrator” will include the Board, the
Compensation Committee, and the person or persons delegated authority under the Plan to the extent of such delegation, as applicable. 

“Award”: Any or a combination of the following: 
  

	 	(a)	 Stock Options. 

  

	 	(b)	 SARs. 

  

	 	(c)	 Restricted Stock. 

  

	 	(d)	 Unrestricted Stock. 

  

	 	(e)	 Stock Units, including Restricted Stock Units and performance-based Restricted Stock Units.

  

	 	(f)	 Performance Awards. 

  

	 	(g)	 Awards (other than Awards described in (a) through (f) above) that are convertible into or otherwise based
on Stock. 

 “Board”: The Board of Directors of the Company. 

“Cause”: In the case of any Participant who is party to an employment or severance-benefit agreement that contains a
definition of “Cause,” the definition set forth in such agreement shall apply with respect to such Participant for purposes of the Plan for so long as such agreement is in effect. In every other case, “Cause” means, as determined
by the Administrator: 
 (a) the Participant’s commission of any felony or any crime involving moral turpitude; 

(b) the Participant’s gross negligence, breach of fiduciary duty or breach of any
non-competition, non-solicitation, confidentiality or developments agreement or other covenant in favor of the Company; 

(c) the Participant’s willful failure to substantially perform his or her duties with the Company and its Affiliates after a
written demand for substantial performance is delivered by the Company or one of its Affiliates, and such failure of substantial performance shall have continued for a period of thirty (30) days after such written demand; 

(d) the Participant has been chronically absent from work (excluding vacations, illnesses or leaves of absences); 

(e) the Participant’s commission of an act of fraud, embezzlement or misappropriation against the Company or one of its
Affiliates; 
 (f) the Participant shall have refused, after explicit notice, to obey any lawful resolution or direction by the Board
or his or her supervisor which is consistent with the Participant’s duties; or 
 (g) a violation by the Participant of any
material written policy of the Company or any of its Affiliates or any code of conduct adopted by the Company or any of its Affiliates. 

  
 A-1 

 “Code”: The U.S. Internal Revenue Code of 1986, as from time to time
amended and in effect, or any successor statute as from time to time in effect. 
 “Company”: Waters Corporation, a
Delaware corporation. 
 “Compensation Committee”: The Compensation Committee of the Board. 

“Covered Transaction”: Any of: 

(a) a consolidation, merger or similar transaction or series of related transactions, including a sale or other disposition of stock: 

1. in which the Company is not the surviving corporation; 

2. unless following which securities possessing more than 50% of the total combined voting power of the survivor’s or
acquiror’s outstanding securities (or the securities of any parent thereof) are held by a person or persons who held securities possessing more than 50% of the total combined voting power of the Company’s outstanding securities immediately
prior to the Covered Transaction; or 
 3. that results in any person or group of persons (within the meaning of
Section 13(d)(3) of the Exchange Act) directly or indirectly acquiring beneficial ownership (determined pursuant to Rule 13d-3 promulgated under the Exchange Act) of securities possessing more than 20% of
the total combined voting power of the Company’s outstanding securities unless pursuant to a tender or exchange offer made directly to the Company’s stockholders that the Board recommends such stockholders accept, in each case, other than
an acquisition by (i) the Company or any of its Affiliates, (ii) an employee benefit plan of the Company or any of its Affiliates, (iii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or
any of its Affiliates, or (iv) an underwriter temporarily holding securities pursuant to an offering of such securities; 
 (b)
a sale or transfer of all or substantially all the Company’s assets; 
 (c) a change in the composition of the Board, over a
period of thirty-six (36) consecutive months or less, in which a majority of the Board members (rounded up to the next whole number, if a fraction) ceases, by reason of one or more proxy contests for the
election of Board members, to be composed of individuals who either (1) have been Board members continuously since the beginning of that period, or (2) have been elected or nominated for election as Board members during such period by at
least a majority of the Board members described in the preceding clause (1) who were still in office at the time that election or nomination was approved by the Board; or 

(d) a dissolution or liquidation of the Company. 

Where a Covered Transaction involves a tender offer that is reasonably expected to be followed by a merger described in clause (i) (as determined by the
Administrator), the Covered Transaction will be deemed to have occurred upon consummation of the tender offer. 
 “Date of
Adoption”: The date the Plan was approved by the Company’s stockholders. 
 “Director”: A member of the Board
who is not an Employee. 
 “Disability”: In the case of any Participant who is party to an employment, change of control or
severance-benefit agreement that contains a definition of “Disability” (or a corollary term), the definition set forth in such agreement shall apply with respect to such Participant for purposes of the Plan for so long as such agreement is
in effect. In every other case, “Disability” means, as determined by the Administrator, absence from work due to a disability for a period in excess of ninety (90) days in any twelve (12)-month period that would entitle the
Participant to receive benefits under the Company’s long-term disability program as in effect from time to time (if the Participant were a participant in such program). 

“Employee”: Any person who is employed by the Company or any of its Affiliates. 

“Employment”: A Participant’s employment or other service relationship with the Company or any of its Affiliates.
Employment will be deemed to continue, unless the Administrator otherwise determines, so long as the Participant is employed by, or otherwise is providing services in a capacity described in Section 5 of the Plan

  
 A-2 

 
to, the Company or any of its Affiliates. If a Participant’s employment or other service relationship is with any of its Affiliates and that entity ceases to be an Affiliate, the
Participant’s Employment will be deemed to have terminated when the entity ceases to be an Affiliate of the Company unless the Participant transfers Employment to the Company or one of its remaining Affiliates. Notwithstanding the foregoing, in
construing the provisions of any Award relating to the payment of “nonqualified deferred compensation” (subject to Section 409A) upon a termination or cessation of Employment, references to termination or cessation of employment,
separation from service, retirement or similar or correlative terms will be construed to require a “separation from service” (as that term is defined in Section 1.409A-1(h) of the Treasury
Regulations, after giving effect to the presumptions contained therein) from the Company and from all other corporations and trades or businesses, if any, that would be treated as a single “service recipient” with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations. The Company may, but need not, elect in writing, subject to the applicable limitations under Section 409A, any of the special elective rules prescribed
in Section 1.409A-1(h) of the Treasury Regulations for purposes of determining whether a “separation from service” has occurred. Any such written election will be deemed a part of the Plan. 

“Exchange Act”: The Securities Exchange Act of 1934, as amended. 

“Fair Market Value”: As of a particular date, (i) the closing price for a share of Stock reported on the New York Stock
Exchange (or any other national securities exchange on which the Stock is then listed) for that date or, if no closing price is reported for that date, the closing price on the immediately preceding date on which a closing price was reported or
(ii) in the event that the Stock is not traded on a national securities exchange, the fair market value of a share of Stock determined by the Administrator consistent with the rules of Section 422 and Section 409A to the extent
applicable. 
 “ISO”: A Stock Option intended to be an “incentive stock option” within the meaning of
Section 422. Each Stock Option granted pursuant to the Plan will be treated as providing by its terms that it is to be an NSO unless, as of the date of grant, it is expressly designated as an ISO. 

“NSO”: A Stock Option that is not intended to be an “incentive stock option” within the meaning of
Section 422. 
 “Participant”: A person who is granted an Award under the Plan. 

“Performance Award”: An Award subject to performance vesting conditions, which may include Performance Criteria. 

“Performance Criteria”: Specified criteria, other than the mere continuation of Employment or the mere passage of time, the
satisfaction of which is a condition for the grant, exercisability, vesting or full enjoyment of an Award. A Performance Criterion and any targets with respect thereto need not be based upon an increase, a positive or improved result or avoidance of
loss and may be applied to a Participant individually, or to a business unit or division of the Company or to the Company as a whole. The Administrator may provide that one or more of the Performance Criteria applicable to such Award will be
adjusted in a manner to reflect events (for example, but without limitation, acquisitions or dispositions) occurring during the performance period that affect the applicable Performance Criterion or Criteria. 

“Plan”: This Waters Corporation 2020 Equity Incentive Plan, as from time to time amended and in effect. 

“Prior Plan”: The Waters Corporation 2012 Equity Incentive Plan, as from time to time amended and in effect. 

“Restricted Stock”: Stock subject to restrictions requiring that it be forfeited, redelivered or offered for sale to the
Company if specified performance or other vesting conditions are not satisfied. 
 “Restricted Stock Unit”: A Stock Unit
that is, or as to which the issuance of Stock or delivery of cash in lieu of Stock is, subject to the satisfaction of specified performance or other vesting conditions. 

“SAR”: A right entitling the holder upon exercise to receive an amount (payable in cash or in shares of Stock of equivalent
value) equal to the excess of the Fair Market Value of the shares of Stock subject to the right over the base value from which appreciation under the SAR is to be measured. 

  
 A-3 

 “Section 409A”: Section 409A of the Code and the
regulations thereunder.  
 “Section 422”: Section 422 of the Code and the regulations
thereunder.  
 “Stock”: Common stock of the Company, par value $0.01 per share. 

“Stock Option”: An option entitling the holder to acquire shares of Stock upon payment of the exercise price. 

“Stock Unit”: An unfunded and unsecured promise, denominated in shares of Stock, to issue Stock or deliver cash measured by
the value of Stock in the future. 
 “Substitute Award”: An award issued under the Plan in substitution for one or more
equity awards of an acquired company that are converted, replaced or adjusted in connection with the acquisition. 
 “Unrestricted
Stock”: Stock not subject to any restrictions under the terms of the Award. 

  
 A-4

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