Document:

Exhibit 10.1

 

Tetra Tech, Inc.

 

Employee Stock Purchase Plan

 

(As Amended Through January 1, 2012)

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 1 ESTABLISHMENT, PURPOSE AND TERM OF PLAN
    	
 
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE 2 DEFINITIONS
    	
 
    	
1
    
	
 
    	
 
    	
 
    
	
2.1
    	
Account
    	
 
    	
1
    
	
2.2
    	
Board
    	
 
    	
1
    
	
2.3
    	
Code
    	
 
    	
1
    
	
2.4
    	
Committee
    	
 
    	
1
    
	
2.5
    	
Common Stock
    	
 
    	
1
    
	
2.6
    	
Company
    	
 
    	
2
    
	
2.7
    	
Continuous   Employment
    	
 
    	
2
    
	
2.8
    	
Employee
    	
 
    	
2
    
	
2.9
    	
Exchange Act
    	
 
    	
2
    
	
2.10
    	
Fair Market   Value
    	
 
    	
2
    
	
2.11
    	
Leave of   Absence
    	
 
    	
2
    
	
2.12
    	
Participant
    	
 
    	
2
    
	
2.13
    	
Plan
    	
 
    	
2
    
	
2.14
    	
Purchase Right
    	
 
    	
2
    
	
2.15
    	
Purchase Right   Period
    	
 
    	
2
    
	
2.16
    	
Stockholders
    	
 
    	
3
    
	
2.17
    	
Subsidiary
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 3 ELIGIBILITY AND PARTICIPATION
    	
 
    	
3
    
	
 
    	
 
    	
 
    
	
3.1
    	
Eligibility
    	
 
    	
3
    
	
3.2
    	
Payroll   Withholding
    	
 
    	
3
    
	
3.3
    	
Limitations
    	
 
    	
4
    
	
3.4
    	
Granting of   Purchase Rights
    	
 
    	
4
    
	
3.5
    	
Establishment   of Accounts
    	
 
    	
4
    
	
3.6
    	
Special   Rules for Acquisitions
    	
 
    	
5
    
	
3.7
    	
Change in   Employment Status; Transfers of Employment
    	
 
    	
5
    
	
3.8
    	
Suspension   upon Hardship Withdrawal
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 4 PURCHASE RIGHTS
    	
 
    	
5
    
	
 
    	
 
    	
 
    
	
4.1
    	
Termination of   Purchase Rights
    	
 
    	
5
    
	
4.2
    	
Exercise of   Purchase Rights
    	
 
    	
6
    
	
4.3
    	
Termination   Event
    	
 
    	
7
    
	
4.4
    	
Non-Transferability
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 5 COMMON STOCK
    	
 
    	
7
    
	
 
    	
 
    	
 
    
	
5.1
    	
Shares Subject   to Plan
    	
 
    	
7
    
	
5.2
    	
Adjustment   Upon Changes in Capitalization
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 6 PLAN ADMINISTRATION
    	
 
    	
8
    
	
 
    	
 
    	
 
    
	
6.1
    	
Administration
    	
 
    	
8
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
6.2
    	
Indemnification
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 7 AMENDMENT AND TERMINATION
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
7.1
    	
Amendment and   Termination
    	
 
    	
9
    
	
7.2
    	
Stockholder   Approval
    	
 
    	
9
    
	
7.3
    	
Participating   Subsidiaries
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 8 MISCELLANEOUS MATTERS
    	
 
    	
9
    
	
 
    	
 
    	
 
    
	
8.1
    	
Uniform Rights   and Privileges
    	
 
    	
9
    
	
8.2
    	
Application of   Proceeds
    	
 
    	
9
    
	
8.3
    	
Notice of   Disqualifying Disposition
    	
 
    	
9
    
	
8.4
    	
No Additional   Rights
    	
 
    	
10
    
	
8.5
    	
Accommodation   of Local Laws
    	
 
    	
10
    
	
8.6
    	
Section 409A
    	
 
    	
10
    
	
8.7
    	
Data Privacy
    	
 
    	
11
    
	
8.8
    	
Governing Law;   Severability
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix A-1
    	
List of Subsidiaries Whose   Employees are Designated to Participate in the Section 423 Component of   the Plan
    	
 
    	
A-1
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix A-2
    	
List of Subsidiaries Whose   Employees are Designated to Participate in the Non-Section 423 Component   of the Plan
    	
 
    	
A-2
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix A-3
    	
List of Subsidiaries Ineligible   to Participate in the Plan
    	
 
    	
A-3
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix B
    	
Australia Addendum
    	
 
    	
B-1
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix C
    	
Canada Addendum
    	
 
    	
C-1
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix D
    	
Chile Addendum
    	
 
    	
D-1
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix E
    	
Germany Addendum
    	
 
    	
E-1
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix F
    	
India Addendum
    	
 
    	
F-1
    
	
 
    	
 
    	
 
    	
 
    
	
Appendix G
    	
U.K. Addendum
    	
 
    	
G-1
    

 

ii

 

Tetra Tech, Inc.
 Employee Stock Purchase Plan
 (As Amended Through January 1, 2012)

 

Article 1
 Establishment, Purpose and Term of Plan

 

The Tetra Tech, Inc. Employee Stock Purchase Plan (the “Plan”) was originally established effective as of February 8, 1996.  The purpose of the Plan is to provide employment incentives for, and to encourage stock ownership by, Eligible Employees (as defined in Section 3.1 of the Plan) of Tetra Tech, Inc. or any Subsidiary that maintains the Plan in order to increase their proprietary interest in the success of the Company.

 

This amendment and restatement of the Plan is effective as of January 1, 2012 and applies to any Purchase Right Period beginning on or after that date.  As amended and restated, the Plan includes two components, a Section 423 Component and a Non-423 Component.  The “Section 423 Component” is intended to qualify as an “employee stock purchase plan” under Code Section 423, and the Plan shall be so construed.  The “Non-423 Component” means the part of the Plan applicable to certain Subsidiaries that is not intended to meet the requirements set forth in Code Section 423.   The Plan shall govern the terms and conditions of grants made under both the Section 423 Component and the Non-423 Component.  Except as otherwise indicated below, the Non-423 Component will operate and be administered in the same manner as the Section 423 Component.

 

The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the shares of Common Stock available for issuance under the Plan have been issued.

 

Article 2
 Definitions

 

Whenever capitalized in the text, the following terms shall have the meanings set forth below.

 

2.1          “Account” shall mean the account established pursuant to Section 3.5 below to hold a Participant’s contributions to the Plan.

 

2.2          “Board” shall mean the Board of Directors of Tetra Tech, Inc.

 

2.3          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

2.4          “Committee” shall mean the Board of Tetra Tech, Inc. or a committee designated by the Board to administer the Plan.  The Board may appoint and remove members of the Committee at any time.

 

2.5          “Common Stock” shall mean the common stock of Tetra Tech, Inc.

 

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2.6          “Company” shall mean Tetra Tech, Inc., a Delaware corporation, as well as any Subsidiary whose employees participate in the Plan with the consent of the Board.

 

2.7          “Continuous Employment” shall mean uninterrupted employment with the Company.  Employment shall not be considered interrupted because of (i) transfers of employment between Tetra Tech, Inc. and a Subsidiary, (ii) transfers of employment between Subsidiaries, and (iii) any Leave of Absence except as otherwise provided in Section 2.11.

 

2.8          “Employee” shall mean any person in an employee-employer relationship with Tetra Tech, Inc. or any Subsidiary.  This term does not include members of the Board unless the Company employs them in a position in addition to their duties as directors.

 

2.9          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

2.10        “Fair Market Value” shall be determined in accordance with the following rules.

 

(a)           If the Common Stock is admitted to trading or listed on a national securities exchange, including but not limited to The NASDAQ Stock Market, Inc., Fair Market Value shall be the last reported sale price regular way, or if no such reported sale takes place on that day, the average of the last reported bid and ask prices regular way, in either case on the principal national securities exchange on which the Common Stock is admitted to trading or listed.

 

(b)           If not admitted to trading or listed on any national securities exchange, Fair Market Value shall be the closing bid and ask prices on that day as furnished by any member of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose.

 

If the markets were closed on the day in question, Fair Market Value shall be determined as of the last preceding day on which they were open.

 

2.11        “Leave of Absence” shall mean a bona fide leave of absence taken in accordance with the Company’s leave of absence policy.  A Participant will not be considered to have incurred a break in Continuous Employment because of a Leave of Absence that does not exceed ninety (90) days.  If the Leave of Absence exceeds ninety (90) days, the Participant will be deemed to have incurred a break in Continuous Employment on the ninety-first (91st) day, unless statute or contract guarantees the Participant’s rights to reemployment after the end of such Leave of Absence.

 

2.12        “Participant” shall mean an Eligible Employee who has been granted a Purchase Right under the Plan.

 

2.13        “Plan” shall mean the Tetra Tech, Inc. Employee Stock Purchase Plan.

 

2.14        “Purchase Right” shall mean a stock option granted pursuant to the Plan.

 

2.15        “Purchase Right Period”shall mean the period that begins on the first day after January 1st on which the Company’s Common Stock is traded and ending on the last day on which the Company’s Common Stock is traded that occurs on or before December 15 of that year.

 

2

 

2.16        “Stockholders” shall mean the holders of Common Stock.

 

2.17        “Subsidiary” shall mean a corporation (other than the Company), whether in existence as of the date of this amendment and restatement or thereafter, in an unbroken chain of corporations beginning with the Company if each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in the chain.

 

Article 3
 Eligibility and Participation

 

3.1          Eligibility.

 

(a)           Employees of Tetra Tech, Inc. and each Subsidiary listed in Appendix A-1 shall be Eligible Employees with respect to the Section 423 Component of the Plan except for Employees who are either customarily employed less than twenty (20) hours per week or for not more than 5 months per calendar year.  With respect to the Non-423 Component of the Plan, these same eligibility rules apply except that the Committee shall have the authority to expand or limit eligibility within any Subsidiary listed in Appendix A-2 in its sole discretion, including but not limited to compliance with applicable local law.

 

(b)           No Employee may be granted a Purchase Right if the Employee would immediately thereafter own, directly or indirectly, five percent (5%) or more of the combined voting power or value of all classes of stock of the Company or of a Subsidiary.  For this purpose, an Employee’s ownership interest shall be determined in accordance with the constructive ownership rules of Code Section 424(d).

 

3.2          Payroll Withholding.

 

(a)           Eligible Employees may enroll as Participants by designating prior to the commencement of each Purchase Right Period the dollar amount (not a percentage of compensation) to be deducted from their paychecks and contributed to their Accounts for the purchase of Common Stock, which shall not be less than twenty-five dollars (U.S. $25), or its foreign currency equivalent, per payroll period.

 

(b)           Once chosen, the rate of contributions for a Purchase Right Period cannot be increased.  However, pursuant to rules and procedures prescribed by the Committee, a Participant may make additional contributions to make up any contributions that he or she failed to make while on a Leave of Absence if the Participant returns to active employment prior to having a break in Continuous Service and contributes those amounts before the end of the Purchase Right Period.

 

3

 

3.3          Limitations.

 

(a)           Notwithstanding anything herein to the contrary, a Participant may not accrue a right to purchase shares of Common Stock under the Plan at a rate that exceeds five thousand dollars (U.S. $5,000), or its foreign currency equivalent, per Purchase Right Period.

 

(b)           Furthermore, in no event may a Participant accrue a right to purchase stock under the Plan and under all other employee stock purchase plans described in Code Section 423 that are maintained by the Company and its Subsidiaries at a rate that exceeds twenty-five thousand dollars (U.S. $25,000), or its foreign currency equivalent, per calendar year.

 

(c)           The dollar limitations of this Section 3.3 apply to the Fair Market Value of Common Stock determined at the time the Purchase Right is granted.

 

3.4          Granting of Purchase Rights.

 

(a)           Upon an Eligible Employee’s enrollment in the Plan, the Committee will, at the commencement of the Purchase Right Period, grant a Purchase Right to allow the Participant to purchase the number of whole shares of Common Stock calculated by:

 

(i)            Multiplying the dollar amount of the deduction designated by the Participant by the number of payroll periods in the Purchase Right Period; and

 

(ii)           Dividing this sum by the Fair Market Value of a share of Common Stock on the first day of the Purchase Right Period.

 

(b)           Notwithstanding the provisions of Paragraph (a) above, the price at which each share covered by a Purchase Right will be purchased will be the lesser of:

 

(i)            One hundred percent (100%) of the Fair Market Value of a share of Common Stock on the first day of the applicable Purchase Right Period; or

 

(ii)           Eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the last day of that Purchase Right Period.

 

(c)           Notwithstanding anything in this Plan to the contrary, in no event can a Participant purchase more than twenty thousand (20,000) shares of Common Stock in a single Purchase Right Period.

 

3.5          Establishment of Accounts.

 

(a)           All amounts contributed by the Participant to the Plan (by means of payroll withholding) will be accounted for separately for the benefit of the Participant.  No interest will be earned on those contributions.

 

(b)           A Participant may not withdraw any amounts from his or her Account without terminating his or her Purchase Right pursuant to Section 4.1 below.

 

4

 

3.6          Special Rules for Acquisitions.   If the Company or a Subsidiary acquires another entity, whether by means of the purchase of stock or assets (“Acquired Entity”), the Board may (a) designate a special Purchase Right Period for the employees of the Acquired Entity, and (b) may treat service with the Acquired Entity as service with the Company for purposes of the service requirement of Section 3.1(a).  Any such treatment shall be made by means of resolutions of the Board, and shall apply to all of the employees of the Acquired Entity.

 

3.7          Change in Employment Status; Transfers of Employment.

 

(a)           If an Employee’s employment situation has changed so that the individual is no longer an Eligible Employee under Section 3.1 (e.g., because of a reduction of hours worked), but his or her employment has not been terminated, such Employee shall not be entitled to make any more contributions to the Plan after the change in status, but may elect to leave his or her prior contributions in the Plan to be used to purchase Common Stock at the end of the Purchase Right Period.

 

(b)           A Participant who transfers employment from a Subsidiary listed in either Appendix A-1 (with respect to the Section 423 Component of the Plan) or Appendix A-2 (with respect to the Non-423 Component of the Plan) to a Subsidiary that is listed in a different Appendix (for example, a transfer of employment from a Subsidiary listed in Appendix A-1 to a Subsidiary listed in either Appendix A-2 or Appendix A-3) shall not be entitled to make any more contributions to any component of the Plan after such change in status for the remainder of the then current Purchase Right Period; provided, however, that any such Participant may elect to apply his or her contributions made prior to any such transfer towards the purchase of Common Stock at the end of the then current Purchase Right Period under the component of the Plan under which such contributions were made to the Plan.

 

3.8          Suspension upon Hardship Withdrawal.

 

(a)           If a Participant receives a distribution from a Section 401(k) plan (or another similar type of retirement or savings plan) maintained by the Company (or any other entity affiliated with the Company under Code Section 414) on account of a financial hardship (“Hardship Withdrawal”) and it is intended that the Hardship Withdrawal satisfy the safe harbor contained in the Section 401(k) regulations (or a restriction that is similar to it), the Participant shall be (i) considered to have withdrawn from the Plan and (ii) precluded from making any contributions to this plan for at least six (6) months.

 

(b)           The Committee shall prescribe such rules and procedures, as it deems appropriate regarding suspensions pursuant to this Section 3.8.

 

Article 4
 Purchase Rights

 

4.1          Termination of Purchase Rights.

 

(a)           Upon the termination of a Purchase Right, all amounts held in the Participant’s Account shall be refunded to the Participant.

 

5

 

(b)           A Participant may withdraw from the Plan at any time prior to the last day of the Purchase Right Period by submitting written notice to the Company, which shall be deemed to be duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.  The Participant’s Purchase Right shall terminate upon his or her withdrawal from the Plan.

 

(c)           A Purchase Right shall terminate automatically if the Participant holding the Purchase Right ceases to be in Continuous Employment for any reason prior to the last day of the Purchase Right Period.

 

(d)           Notwithstanding the provisions of Paragraph (a) above, in the event that a Participant ceases making contributions during a Purchase Right Period, the Participant may elect to leave his or her prior contributions in the Plan to be used to purchase Common Stock at the end of the Purchase Right Period.  However, in no event can a Participant:

 

(i)            Reduce (but not eliminate) his or her contributions during a Purchase Right Period; or

 

(ii)           Suspend his or her contributions and recommence making them in the same Purchase Right Period, unless due to a Leave of Absence.

 

4.2          Exercise of Purchase Rights.

 

(a)           Unless previously terminated, Purchase Rights will be automatically exercised on the last day of the Purchase Right Period.  Under no circumstances may Purchase Rights be exercised after the expiration of 27 months from the date the Purchase Right is granted.

 

(b)           Except as provided in Section 3.2(b) above or an Appendix to the Plan, payment for shares to be purchased at the termination of the Purchase Right Period may only be made from funds accumulated through payroll deductions made during the Purchase Right Period.

 

(c)           If the amount in the Participant’s Account at the end of the Purchase Right Period is insufficient to purchase all the shares covered by the Purchase Right granted to the Participant, those funds will be used to purchase as many whole shares as possible.

 

(d)           If the balance of the Participant’s Account on the date of purchase exceeds the purchase price of the whole number of shares to be acquired, the surplus shall be refunded to the Participant in accordance with rules and procedures prescribed by the Committee.  Any funds remaining after the last Purchase Right Period are automatically refunded to the Participant.

 

(e)           Distribution of the whole number of shares of Common Stock shall be made as soon as reasonably possible following the date of the exercise of the Purchase Right either electronically to the brokerage accounts of the Participants or, if they have no such accounts, by means of a stock certificate.

 

6

 

4.3          Termination Event.  The following provisions of this Section 4.3 shall apply, notwithstanding anything herein to the contrary.

 

(a)           A “Termination Event” shall be deemed to occur as a result of:

 

(i)            A transaction in which the Company will cease to be an independent publicly-owned corporation (as determined by the  Committee); or

 

(ii)           A sale or other disposition of all or substantially all of the assets of the Company.

 

(b)           All Purchase Rights shall be automatically exercised as of the Termination Event.

 

4.4          Non-Transferability.  Neither payroll deductions/contributions credited to a Participant’s Account nor a Participant’s Purchase Right may be assigned, transferred, pledged or otherwise disposed of in any manner other than as provided by the Plan or by will or the laws of descent and distribution.  Any such attempted assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from the Plan.  A Purchase Right shall be exercisable during the lifetime of the Participant only by the Participant.

 

Article 5
 Common Stock

 

5.1          Shares Subject to Plan.

 

(a)           Effective as of March 1, 2007, the maximum number of shares of Common Stock available for issuance under the Plan was 4,373,290, subject to adjustment under Section 5.2 below.  The maximum number of shares of Common Stock authorized under this Section 5.1 may be issued under the Section 423 Component (provided no shares of Common Stock are issued under the Non-423 Component).

 

(b)           Only the number of shares of Common Stock that are issued under a Purchase Right shall reduce the number of shares available under the Plan.  If any outstanding Purchase Right is terminated for any reason prior to its exercise, the shares allocable to the Purchase Right may again become subject to purchase under the Plan.

 

(c)           The Common Stock subject to issue under the Plan may be previously unissued stock or may have been reacquired by the Company in the open market (or otherwise).

 

5.2          Adjustment Upon Changes in Capitalization.  A proportionate adjustment shall be made by the Committee in the number, price, and kind of shares subject to outstanding Purchase Rights if the outstanding shares of Common Stock are increased, decreased or exchanged for different securities, through reorganization, recapitalization, reclassification, stock split, stock dividend, or other similar transaction not constituting a Termination Event under Section 4.3 above.

 

7

 

Article 6
 Plan Administration

 

6.1          Administration.

 

(a)           The Committee shall administer the Plan.  The Committee shall have authority in its sole discretion to:

 

(i)            Interpret the Plan;

 

(ii)           Prescribe rules and procedures relating to the Plan, including without limitation rules and procedures regarding employment transfers, handling of payroll deductions or other contributions by Participants, conversion of local currency, data privacy security, payroll tax, withholding procedures for U.S. source income.

 

(iii)          Establish rules or sub-plans applicable to particular Subsidiaries or locations under Section 8.5 of the Plan and updating the Appendices to the Plan; or

 

(iv)          Take all other actions necessary or appropriate for the administration of the Plan, including delegation of administrative duties to officers of Tetra Tech, Inc.

 

Notwithstanding the foregoing, the provisions of the Section 423 Component of the Plan shall be interpreted, administered and enforced in accordance with Code Section 423(b), so as to extend and limit Plan participation in a uniform and nondiscriminatory basis consistent with the requirements of Code Section 423.

 

(b)           A majority of the members of the Committee shall constitute a quorum, and any action shall constitute the action of the Committee if it is authorized by:

 

(i)            A majority of the members present at any meeting; or

 

(ii)           All of the members in writing without a meeting.

 

(c)           All actions, decisions and determinations taken or made by the Committee shall be final and binding on all Participants and any other person having an interest herein.

 

(d)           No member of the Committee shall be liable for any action or inaction made in good faith with respect to the Plan or any Purchase Right granted under it.

 

6.2          Indemnification.

 

(a)           To the maximum extent permitted by law, the Company shall indemnify each member of the Committee and every other member of the Board, as well as any other Employee with duties under the Plan, against all liabilities and expenses (including any amount paid in settlement or in satisfaction of a judgment) reasonably incurred by the individual in connection with any claims against the individual by reason of the performance of his or her duties under the Plan.  This indemnity shall not apply, however, if:

 

8

 

(i)            It is determined in the action, lawsuit, or proceeding that the individual is guilty of gross negligence or intentional misconduct in the performance of those duties; or

 

(ii)           The individual fails to assist the Company in defending against any such claim.

 

(b)           Notwithstanding the above, the Company shall have the right to select counsel and to control the prosecution or defense of the suit.  Furthermore, the Company shall not be obligated to indemnify any individual for any amount incurred through any settlement or compromise of any action unless the Company consents in writing to the settlement or compromise.

 

Article 7
 Amendment and Termination

 

7.1          Amendment and Termination.   The Board may amend or terminate the Plan at any time by means of written action, except with respect to any outstanding Purchase Rights. Furthermore, the Board may elect to suspend or recommence the Plan following the end of any Purchase Right Period.

 

7.2          Stockholder Approval.  An amendment to the Plan must be approved by the Stockholders within twelve months of being adopted by the Board if such amendment would authorize the sale of more Common Stock than is then authorized for issuance under the Plan (for avoidance of doubt, not including any adjustment under Section 5.2 above) or would involve any change that would be considered the adoption of a new plan under Code Section 423 and Treas. Reg. Sect. 1.423-2(c)(4).

 

7.3          Participating Subsidiaries.  The Board may change, from time to time, the designation of Subsidiaries whose Employees may participate in the Plan.  For the avoidance of doubt, the Board shall have the exclusive authority to determine which Subsidiaries shall participate in the Non-423 Component and which shall participate in the Code Section 423 Component.  Any change made under this Section 7.3 shall not require shareholder approval.

 

Article 8
 Miscellaneous Matters

 

8.1          Uniform Rights and Privileges.  The rights and privileges of all Participants under the Section 423 Component of the Plan shall be the same.

 

8.2          Application of Proceeds.  The proceeds received by the Company from the sale of Common Stock pursuant to Purchase Rights may be used for any corporate purpose.

 

8.3          Notice of Disqualifying Disposition.  A Participant must notify the Company if the Participant disposes of stock acquired pursuant to the Section 423 Component of the Plan prior to the expiration of the holding periods required to qualify for long-term capital gains treatment on the sale.

 

9

 

8.4          No Additional Rights.

 

(a)           Neither the adoption of this Plan nor the granting of any Purchase Right shall:

 

(i)            Affect or restrict in any way the power of the Company to undertake any corporate action otherwise permitted under applicable law; or

 

(ii)           Confer upon any Participant the right to continue to be employed by the Company, nor shall it interfere in any way with the right of the Company to terminate the employment of any Participant at any time, with or without cause.

 

(b)           No Participant shall have any rights as a Stockholder with respect to the shares covered by a Purchase Right until the time at which the Fair Market Value of the Common Stock is determined on the last day of the Purchase Right Period in which the shares were purchased.

 

(c)           No adjustments will be made for cash dividends or other rights for which the record date is prior to the date of the exercise of the Purchase Right.

 

8.5          Accommodation of Local Laws.  The Committee may adopt rules or procedures relating to the operation and administration of this Plan to accommodate the specific requirements of local laws and procedures.  Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding handling of payroll deductions or other contributions by Participants, payment of interest, conversion of local currency, obligations to pay payroll tax, determination of beneficiary designation requirements, withholding procedures and handling of stock certificates that vary with local requirements; however, if such varying provisions are not in accordance with the provisions of Code Section 423(b), including but not limited to the requirement of Code Section 423(b)(5) that all options granted under the Plan shall have the same rights and privileges unless otherwise provided under the Code and the regulations promulgated thereunder, then the individuals affected by such varying provisions shall be deemed to be participating under a sub-plan and not the Plan.  The Committee may also adopt rules, procedures or sub-plans applicable to particular Subsidiaries or locations, which may be designed to be within or outside the scope of Code Section 423.  Such rules or sub-plans may take precedence over other provisions of the Plan, but unless otherwise superseded by the terms of such rules or sub-plan, the provisions of the Plan shall govern.

 

8.6          Section 409A.  The Section 423 Component of the Plan shall be exempt from the application of Section 409A of the Code as a stock right that does not provide for the deferral of compensation.  The Non-423 Component of the Plan shall be exempt from Section 409A of the Code under the short-term deferral exception and any ambiguities in the Plan shall be construed and interpreted in accordance with such intent.  The Company shall have no liability to a Participant or any other party if a Purchase Right that is intended to be exempt from Code Section 409A is not so exempt or for any action taken by the Board or the Committee with respect thereto.  The Company makes no representation that a Purchase Right is exempt from Code Section 409A.

 

10

 

8.7          Data Privacy.  By participating in the Plan, each Participant agrees to the collection, processing, use and transfer of personal information by the entity that employs the Participant, the Company, the Committee and its designees in order to administer the Plan.

 

8.8          Governing Law; Severability.  The Plan and all actions taken under it shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflicts of laws principles.  If any provision of the Plan (including all or any part of an Appendix hereto) shall be held unlawful or otherwise invalid or unenforceable in whole or in part, the unlawfulness, invalidity or unenforceability shall not affect any other provision of the Plan or part thereof, each of which shall remain in full force and effect.  Venue for any dispute involving the Plan shall be in Los Angeles County, California.

 

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Appendix A-1

(As of January 1, 2012)

 

List of Subsidiaries Whose Employees are Designated to

Participate in the Section 423 Component of the Plan

 

	
Name of Entity
    	
 
    	
Domicile
    
	
Advanced Management   Technology, Inc.
    	
 
    	
United States
    
	
Advent Engineering   Services, Inc.
    	
 
    	
United States
    
	
Ardaman &   Associates, Inc.
    	
 
    	
United States
    
	
Consentini   Associates, Inc.
    	
 
    	
United States
    
	
GeoTrans, Inc.
    	
 
    	
United States
    
	
Hartman &   Associates, Inc.
    	
 
    	
United States
    
	
Tetra Tech BAS, Inc.
    	
 
    	
United States
    
	
Tetra Tech Construction, Inc.
    	
 
    	
United States
    
	
Tetra Tech EC, Inc.
    	
 
    	
United States
    
	
Tetra Tech EM Inc.
    	
 
    	
United States
    
	
Tetra Tech EMC, Inc.
    	
 
    	
United States
    
	
Tetra Tech Executive   Services, Inc.
    	
 
    	
United States
    
	
Tetra Tech Facilities   Construction, LLC
    	
 
    	
United States
    
	
Tetra Tech HEI, Inc.
    	
 
    	
United States
    
	
Tetra Tech Technical   Services, Inc.
    	
 
    	
United States
    
	
Tetra Tech Tesoro, Inc.
    	
 
    	
United States
    

 

A-1

 

APPENDIX A-2

(As of January 1, 2012)

 

List of Subsidiaries Whose Employees are Designated to
  Participate in the Non-Section 423 Component of the Plan

 

	
Name of Entity
    	
 
    	
Domicile
    
	
ARD, Inc.
    	
 
    	
United States
    
	
BPR Inc.
    	
 
    	
Canada
    
	
BPR CSO Solutions Inc.
    	
 
    	
Canada
    
	
EBA Engineering Consultants   Ltd.
    	
 
    	
Canada
    
	
Fransen Engineering (FE) Ltd.
    	
 
    	
Canada
    
	
Innogiciel Inc.
    	
 
    	
Canada
    
	
Metalica Consultores S.A.
    	
 
    	
Chile
    
	
PRO-telligent, LLC
    	
 
    	
United States
    
	
Proteus Engineers Pty Ltd.
    	
 
    	
Australia
    
	
Tetra Tech Australia Pty. Ltd.
    	
 
    	
Australia
    
	
Tetra Tech Canada Construction   Inc.
    	
 
    	
Canada
    
	
Tetra Tech ES, Inc.
    	
 
    	
United States
    
	
Tetra Tech ES India Ltd.
    	
 
    	
India
    
	
Tetra Tech IC, Inc.
    	
 
    	
Canada
    
	
Tetra Tech India Limited
    	
 
    	
India
    
	
Tetra Tech Industries General   Partner
    	
 
    	
Canada
    
	
Tetra Tech Industries L.P.
    	
 
    	
Canada
    
	
Tetra Tech MA, Inc.
    	
 
    	
United States
    
	
Tetra Tech Middle East Ltd.
    	
 
    	
United Kingdom
    
	
Tetra Tech WEI Inc.
    	
 
    	
Canada
    
	
Western Utility   Contractors, Inc.
    	
 
    	
United States
    

 

A-2

 

APPENDIX A-3
 (As of January 1, 2012)

 

List of Subsidiaries Ineligible to Participate in the Plan

 

	
Name of Entity
    	
 
    	
Domicile
    
	
BPR France Inc.
    	
 
    	
Canada
    
	
Hagler Bailly Pakistan   (Private) Limited
    	
 
    	
Pakistan
    
	
IP3 Afrique, LLC
    	
 
    	
Senegal
    
	
IP3 Mena, LLC
    	
 
    	
Egypt
    
	
Metalica   Consultores De Mineracao Brasil LTDA
    	
 
    	
Brazil
    
	
PRO-telligent Global Guinea   SARL
    	
 
    	
Guinea
    
	
PRO-telligent Global Limited
    	
 
    	
Kenya
    
	
PRO-telligent GLOBAL (South)   Limited
    	
 
    	
Malawi
    
	
PRO-telligent Global SPRL
    	
 
    	
Congo
    
	
Taheel Tetra Tech L.L.C.
    	
 
    	
Saudi Arabia
    
	
Tetra Tech AMT FZ LLC
    	
 
    	
United Arab Emirates
    
	
Tetra   Tech Argentina S.A.
    	
 
    	
Argentina
    
	
Tetra Tech (Beijing)   Consultancy Company Limited
    	
 
    	
China
    
	
Tetra Tech Caribe, Inc.
    	
 
    	
Puerto Rico
    
	
Tetra Tech Consultancy   (Tianjin)Company Limited
    	
 
    	
China
    
	
Tetra Tech Industries Africa
    	
 
    	
South Africa
    
	
Tetra Tech Industries Jamaica
    	
 
    	
Jamaica
    
	
Tetra Tech International (BVI)   Ltd.
    	
 
    	
British Virgin Islands
    
	
Tetra Tech International S.R.L.
    	
 
    	
Peru
    
	
Tetra Tech NZ Limited
    	
 
    	
New Zealand
    
	
Wardrop (Ghana) Ltd.
    	
 
    	
Ghana
    

 

A-3

 

APPENDIX B

(As of January 1, 2012)

 

Australia Addendum

 

1.             Purpose.  This Appendix B (the “Australia Addendum”) to the Tetra Tech, Inc. Employee Stock Purchase Plan, as amended (the “U.S. Plan”) is hereby adopted under Section 8.5 of the U.S. Plan to set forth certain rules which, together with the provisions of the U.S. Plan (which are modified by this Appendix B in certain respects to comply with the requirements of Australian law), shall govern the operation of the Plan with respect to Australian resident employees of its Australian Subsidiary.  The Australia Addendum is intended to comply with the provisions of the Corporations Act 2001, ASIC Policy Statement 49 and ASIC Class Order 03/184 issued pursuant to that policy statement.

 

2.             Definitions.  Except as set forth below, capitalized terms used herein shall have the meaning ascribed to them in the U.S. Plan.  In the event of any conflict between the provisions set forth in the Australia Addendum and the U.S. Plan, the Australia Addendum provisions shall prevail.  For purposes of the Australia Addendum:

 

ASIC” means the Australian Securities & Investments Commission.

 

“Associated Body Corporate” means, as determined in accordance with the Corporations Act 2001:

 

(a)           a body corporate that is a related body corporate of the Company;

 

(b)           a body corporate that has voting power in the Company of not less than 20%; or

 

(c)           a body corporate in which the Company has voting power of not less than 20%.

 

“Australian ADI” means an Australian authorized deposit taking institution which is regulated by the Australian Prudential Regulation Authority under the Australian Banking Act 1959.

 

“Australian Subsidiary” means any Australian Associated Body Corporate.  For avoidance of doubt, Tetra Tech Australia Pty. Ltd. is the Australian Subsidiary as of the date of this amendment and restatement of the U.S. Plan.

 

“Plan” means collectively the U.S. Plan and the Australia Addendum.

 

“Shares” means shares of the Company’s Common Stock.

 

“U.S. Plan” means the Tetra Tech, Inc. Employee Stock Purchase Plan, as amended from time to time.

 

B-1

 

3.             Form of Awards.  Only Shares and rights to acquire Shares shall be awarded to Eligible Employees (as defined in paragraph 4 below) employed by the Australian Subsidiary under the Plan.

 

4.             Eligible Employees.  The offer under the Plan must be extended only to persons who at the time of the beginning of the Purchase Right Period are full or part-time employees or directors of an Australian Subsidiary (for purposes of the Australia Addendum, “Australian Employees”).

 

5.             Form of Offer.  Any offer under the Plan must be in writing (“Offer Document”) and must include or be accompanied by a copy of the rules of the Plan.  The Company must take reasonable steps to ensure that any Eligible Employee to whom an offer under the Plan is made is given a copy of the Offer Document.  The Offer Document must also state the name of the Australian ADI where contributions are held, the length of time they may be held and the rate of interest payable (if any).  The Offer Document will include a statement to the effect that any advice given by the Company or an Australian Subsidiary in connection with the offer is general advice only, and that Australian offerees should consider obtaining their own financial product advice from an independent person who is licensed by ASIC to give such advice.

 

6.             Australian Dollar Equivalent of Purchase Price at Offer Date.  The Offer Document must specify the Australian dollar equivalent of the purchase price of the Shares offered were the formula in Section 3.4 of the U.S. Plan applied at the date of the Offer Document.

 

7.             Updated Purchase Price Information.  The Offer Document must include an undertaking that, and an explanation of the way in which the Company or its Australian Subsidiary must, within a reasonable period of an Eligible Employee so requesting, make available to the Eligible Employee the following information:

 

(a)           the Australian dollar equivalent of the current market price of shares in the same class as the Shares to which the offer relates; and

 

(b)           the Australian dollar equivalent of the purchase price as if Section 3.4 of the U.S. Plan were applied at the date of the Eligible Employee’s request.

 

For the purposes of the above calculation, the current market price of a Share shall be taken as the price published by the principal exchange on which the Share is quoted as the closing price for the previous day on which the Share was traded on the stock market of that exchange.

 

8.             Exchange Rate for Australian Dollar Equivalent of the Purchase Price. For the purpose of paragraphs 6 and 7 above, the Australian dollar equivalent of the purchase price under Section 3.4 of the U.S. Plan and current market price of a Share shall be calculated by reference to the Australian/U.S. dollar exchange rate published by an Australian bank on the previous business day.

 

9.             Restriction on Capital Raising: 5% Limit.  In the case of an offer of Shares or options for issue under the Plan, the number of Shares subject of the offer or to be received on exercise of an option, when aggregated with the Offer Shares, must not exceed 5% of the total number of issued Shares in that class of the Company as at the time of the offer.

 

B-2

 

In calculating the Offer Shares, the following must be counted:

 

(a)           the number of Shares in the same class that would be issued were each outstanding offer or option to acquire unissued Shares, being an offer made or option acquired pursuant to an employee share scheme extended only to employees or directors of the Company or of Associated Bodies Corporate, to be accepted or exercised (as the case may be), and

 

(b)           the number of Shares in the same class issued during the previous 5 years pursuant to the Plan or any other employee share scheme extended only to employees or directors of the Company or of Associated Bodies Corporate.

 

In calculating the Offer Shares, disregard any offer made, or option acquired or Share issued by way or as a result of:

 

(c)           an offer to a person situated at the time of receipt of the offer outside Australia,

 

(d)           an offer that was an excluded offer or invitation within the meaning of the Corporations Law as it stood prior to 13 March 2000,

 

(e)           an offer that did not need disclosure to investors because of section 708 of the Corporations Act 2001,

 

(f)            an offer that did not require the giving of a Product Disclosure Statement (within the meaning of the Corporations Act 2001) because of section 1012D of the Corporations Act 2001, or

 

(g)           an offer made under a disclosure document or a Product Disclosure Statement.

 

10.           Providing Offer Document to ASIC.  A copy of the Offer Document (which need not contain details of the offer particular to the offeree such as the identity or entitlement of the offeree) and each accompanying document must be provided to ASIC not later than 7 days after the provision of that material to the offeree.

 

11.           Compliance with Undertakings.  The Company or an Australian Subsidiary must comply with any undertaking required to be made in the Offer Document, such as the undertaking to provide pricing information on request.

 

12.           No Loan or Financial Assistance. Neither the Company nor any Associated Body Corporate may offer employees any loan or other financial assistance for the purpose of, or in connection with, the acquisition of the Shares to which the offer relates.

 

13.           Contribution Plan. All contributions from wages or salary made in connection with participation in the Plan must be authorized by the offeree on the same form of application which is used in respect of the offer, or on a form that is included in or accompanies the Offer Document.  Any contributions made by an offeree as part of the Plan must be held by the Company for the offeree in an account of an Australian ADI which is established and kept by the Company solely for the purpose of depositing contribution moneys and other money paid by employees for the Shares on offer under the Plan.

 

The Australian offeree may elect to discontinue their participation in the Plan under procedures established under the Plan, and as soon as practicable after that election is made, all money deposited with the Australian ADI in relation to that offeree shall be returned.

 

B-3

 

APPENDIX C

(As of January 1, 2012)

 

Canada Addendum

 

1.             Purpose.  This Appendix C (the “Canada Addendum”) to the Tetra Tech, Inc. Employee Stock Purchase Plan, as amended (the “U.S. Plan”) is hereby adopted under Section 8.5 of the U.S. Plan to set forth certain rules which, together with the provisions of the U.S. Plan (which are modified by this Appendix C in certain respects to comply with the requirements of Canadian national and provincial law), shall govern the operation of the Plan with respect to Canadian residents employed by Subsidiaries domiciled in Canada.

 

2.             Deductions.  A Participant may specify as the amount to be deducted from his or her compensation an amount that may not be less than $10 (Canadian dollars) per pay period.  Check or money order contributions are to be included in the $5,000 (U.S. dollars) limitation per Purchase Right Period described in Section 3.3(a) of the U.S. Plan.

 

3.             Continuous Employment.  A Participant shall be considered to have a break in Continuous Employment upon the earlier of the date that the Participant is notified that his or her employment has been terminated (without immediate re-employment by the Company or a Subsidiary) or the date on which the Participant provides notice of his or her termination of employment.

 

4.             Disposition of Shares.  Shares acquired by Canadian residents who participate in the Plan shall only be disposed of over the NASDAQ Stock Market or as otherwise may be permitted under Canadian securities law.

 

5.             Participant Consent to Receive Information in English.  The Company shall obtain a written consent from a Canadian resident of Quebec who is a Participant in the following form before  providing documents, notices and legal proceedings in English.

 

Les parties reconnaissent avoir exig la rdaction en anglais de cette convention, ainsi que de tous documents excuts, avis donns et procedures judiciaries intentes, directement ou indirectement, relativement ou suite la prsente convention.

 

C-1

 

APPENDIX D

(As of January 1, 2012)

 

Chile Addendum

 

[Reserved]

 

D-1

 

APPENDIX E

(As of January 1, 2012)

 

Germany Addendum

 

1.             Purpose.  This Appendix D (the “Germany Addendum”) to the Tetra Tech, Inc. Employee Stock Purchase Plan, as amended (the “U.S. Plan”) is hereby adopted under Section 8.5 of the U.S. Plan to set forth certain rules which, together with the provisions of the U.S. Plan (which are modified by this Appendix D in certain respects to comply with the requirements of applicable German, EU and U.S. law), shall govern the operation of the Plan with respect to German residents employed by Subsidiaries domiciled in Germany.

 

2.             Shares Subject to Plan.  Notwithstanding Article 5 of the U.S. Plan, the aggregate value of the shares of Common Stock (the “Shares”) and any securities of the same class as the Shares offered by the Company in the European Union, whether offered through the Plan or otherwise, shall be limited so that it never exceeds 2.5 million euros in any 12-month period or such higher limit as may be adopted for an exemption under the EU prospectus requirements.

 

3.             Eligible Employees.  Notwithstanding anything to the contrary in Section 3.1, all Employees, including Employees employed on part-time or temporary basis, who provide services in Germany and are employed by a Subsidiary domiciled in Germany shall be treated as Eligible Employees under Article 3 of the U.S. Plan.

 

E-1

 

APPENDIX F

 

India Addendum

[Reserved]

 

F-1

 

APPENDIX G

(As of January 1, 2012)

 

U.K. Addendum

 

1.             Purpose.  This Appendix F (the “U.K. Addendum”) to the Tetra Tech, Inc. Employee Stock Purchase Plan, as amended (the “U.S. Plan”) is hereby adopted under Section 8.5 of the U.S. Plan to set forth certain rules which, together with the provisions of the U.S. Plan (which are modified by this Appendix F in certain respects to comply with the requirements of applicable local law), shall govern the operation of the Plan with respect to U.K. resident employees employed by Subsidiaries domiciled in the United Kingdom of Great Britain (“U.K.”).

 

2.             Shares Subject to Plan.  Notwithstanding Article 5 of the U.S. Plan, the aggregate value of the shares of Common Stock (the “Shares”) and any securities of the same class as the Shares offered by the Company in the European Union, whether offered through the Plan or otherwise, shall be limited so that it never exceeds 2.5 million euros in any 12-month period  or such higher limit as may be adopted for an exemption under the EU prospectus requirements.

 

3.             Eligible Employees.  Notwithstanding anything to the contrary in Section 3.1, all Employees, including Employees employed on part-time or temporary basis, who provide services in the U.K. and are employed by a Subsidiary domiciled in the U.K. shall be treated as Eligible Employees under Article 3 of the U.S. Plan.

 

4.             Data Protection.  It shall be a term and condition of each award granted under this Appendix F that the Eligible Employee agrees and consents to:

 

(a)           the collection, use and processing of his or her Personal Data (as defined below) by Tetra Tech, Inc. and any Subsidiary and the transfer of his or her Personal Data to any third party administrator of the Plan and any broker through whom shares of Common Stock are to be sold on behalf of the Eligible Employee;

 

(b)           Tetra Tech, Inc., its Subsidiaries and the third party administrator of the Plan transferring the Eligible Employee’s Personal Data amongst themselves for the purposes of implementing, administering and managing the Plan and the grant of awards and the acquisition of shares of Common Stock pursuant to the Plan;

 

(c)           the use of Personal Data by any such person for any such purposes; and

 

(d)           the transfer to and retention of Personal Data by third parties (including any situated outside the European Economic Area) for or in connection with such purposes.

 

For the purpose of this paragraph 4, “Personal Data” means an Eligible Employee’s name, home address, e-mail address and telephone number, date of birth, social security number or equivalent, details of all rights to acquire shares of Common Stock or other securities issued or transferred to such Eligible Employee pursuant to this Plan and any other personal information which could identify the Eligible Employee and is necessary for the administration of the Plan.

 

G-1

 

5.             Taxes.

 

(a)           The Eligible Employee subject to this Appendix F agrees to indemnify and keep indemnified the Company from and against any liability for or obligation to pay any tax liability that is attributable to: (i) the grant or exercise of a Purchase right; (ii) the acquisition by the Participant of the Common on exercise of a Purchase right; or (iii) the disposal of any shares of Common Stock, (a “Tax Liability”).

 

(b)           At the discretion of the Committee, the Purchase Right cannot be exercised until the Eligible Employee has entered into an election with his or her employer (the “Employer”) (in a form approved by the Employer and HMRC) (a “joint election”) under which any liability of the Employer for Employer’s National Insurance Contributions arising in respect of the grant, exercise of or other dealing in the Purchase Right, or the acquisition of the shares on exercise of the option, is transferred to and met by the Participant.  Without prejudice to the terms of the Plan, the Purchase Right cannot be exercised until the Eligible Employee has made such arrangements as the Company may require for the satisfaction of any Tax Liability that may arise in connection with the exercise of the Purchase Right and/or the acquisition of the shares by the Eligible Employee.

 

(c)           Where any Tax Liability is likely to arise, the Company, the Employer or any Subsidiary may recover from the Eligible Employee an amount of money sufficient to meet the Tax Liability by any of the following arrangements: (i) deduction from salary or other payments due to the Eligible Employee; or (ii) withholding the issue, allotment or transfer to the Eligible Employee of that number of shares (otherwise to be acquired by the Eligible Employee on the exercise of the option) whose aggregate market value on date of exercise is, so far as possible, equal to, but not less than, the amount of Tax Liability (together with the fees and expenses incurred in the sale of the shares, where the company intends to sell the shares to meet the Tax Liability); or (iii) withholding the issue, allotment or transfer to the Eligible Employee of the shares otherwise to be acquired by the Eligible Employee pursuant to the option until such Employee has demonstrated to the satisfaction of the Company or the Employer that he has given irrevocable instructions to a third party (for example a broker) satisfactory to the Company or the Employer to sell sufficient of those shares to ensure the net proceeds are so far as possible, equal to but not less than, the amount of the tax liability.

 

(d)           Paragraph (c) above will not apply where the Eligible Employee has, before the allotment, issuance or transfer of the shares to be issued or transferred to the Eligible Employee as a result of the exercise of a Purchase Right, paid to the Company or the Employer, in cleared funds a sum equal to the Tax Liability arising on the exercise of the Purchase Right.

 

G-2Exhibit 4.1

 

EXECUTION COPY

 

 

 

 

TYCO ELECTRONICS GROUP S.A.,

as Issuer

 

 

AND

 

 

TE CONNECTIVITY LTD.,

as Guarantor

 

 

AND

 

 

DEUTSCHE BANK TRUST
 COMPANY AMERICAS,

as Trustee

 

 

SIXTH SUPPLEMENTAL INDENTURE
 Dated as of February 3, 2012

 

 

$250,000,000 of 1.600% Senior Notes due 2015

 

 

 

THIS SIXTH SUPPLEMENTAL INDENTURE is dated as of February 3, 2012 among TYCO ELECTRONICS GROUP S.A. (the “Company”), TE CONNECTIVITY LTD. (“Parent”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation (the “Trustee”).

 

RECITALS

 

A.                                   Parent, the Company and the Trustee executed and delivered an Indenture, dated as of September 25, 2007, (the “Base Indenture”), to provide for the issuance by the Company from time to time of unsubordinated debt securities evidencing its unsecured indebtedness.

 

B.                                     Pursuant to Board Resolution, the Company has authorized the issuance of the $250,000,000 principal amount of 1.600% Senior Notes due 2015 (the “Offered Securities”).

 

C.                                     The entry into this Sixth Supplemental Indenture by the parties hereto is in all respects authorized by the provisions of the Base Indenture.

 

D.                                    Parent and the Company desire to enter into this Sixth Supplemental Indenture pursuant to Section 9.01 of the Base Indenture to establish the terms of the Offered Securities in accordance with Section 2.01 of the Base Indenture and to establish the form of the Offered Securities in accordance with Section 2.02 of the Base Indenture.

 

E.                                      All things necessary to make this Sixth Supplemental Indenture a valid indenture and agreement according to its terms have been done.

 

NOW, THEREFORE, for and in consideration of the foregoing premises, Parent, the Company and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective holders from time to time of the Offered Securities as follows:

 

ARTICLE I

 

Section 1.1.                                   Terms of Offered Securities.

 

The following terms relate to the Offered Securities:

 

(1)                                  The Offered Securities constitute a series of securities having the title “1.600% Senior Notes due 2015”.

 

(2)                                  The initial aggregate principal amount of the Offered Securities that may be authenticated and delivered under the Base Indenture (except for Offered Securities authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Offered Securities pursuant to Section 2.05, 2.06, 2.07, 2.11, or 3.03) is $250,000,000.

 

(3)                                  The entire Outstanding principal of the Offered Securities shall be payable on February 3, 2015.

 

 

(4)                                  The rate at which the Offered Securities shall bear interest shall be 1.600% per year payable as set forth in the Offered Securities.  The date from which interest shall accrue on the Offered Securities shall be February 3, 2012 or the most recent Interest Payment Date to which interest has been paid or provided for.  The Interest Payment Dates for the Offered Securities shall be February 3 and August 3 of each year, beginning August 3, 2012.  Interest shall be payable on each Interest Payment Date to the holders of record at the close of business on the January 18 and July 18 prior to each Interest Payment Date (a “regular record date”).  The basis upon which interest shall be calculated shall be that of a 360-day year consisting of twelve 30-day months.

 

(5)                                  The Offered Securities shall be issuable in whole in the form of one or more registered Restricted Global Securities, and the Depository for such Restricted Global Securities shall be The Depository Trust Company, New York, New York.  The Offered Securities shall be substantially in the form attached hereto as Exhibit A the terms of which are herein incorporated by reference.  The Offered Securities shall be issuable in denominations of $2,000 or any integral multiple of $1,000 in excess thereof.

 

(6)                                  (A)                              The Offered Securities will be subject to redemption at the option of the Company on any date (a “Redemption Date”) prior to the maturity date, in whole or from time to time in part, in $1,000 increments (provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof), at a redemption price equal to the greater of (i) 100% of the principal amount of the Offered Securities to be redeemed and (ii) as determined by the Quotation Agent and delivered to the Trustee, the sum of the present values of the remaining scheduled payments of principal and interest thereon due on any date after the Redemption Date (excluding the portion of interest that will be accrued and unpaid to and including the Redemption Date) discounted from their scheduled date of payment to the Redemption Date (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Redemption Treasury Rate plus 20 basis points, plus accrued and unpaid interest and Special Interest, if any, thereon to the Redemption Date.

 

(B)                                As used herein:

 

“Adjusted Redemption Treasury Rate”, with respect to any Redemption Date, means the rate equal to the semiannual equivalent yield to maturity or interpolated (on a 30/360 day count basis) yield to maturity of the Comparable Redemption Treasury Issue, assuming a price for the Comparable Redemption Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Redemption Treasury Price for such Redemption Date.

 

“Comparable Redemption Treasury Issue” means the United States Treasury security selected by the Quotation Agent as being the most recently issued United States Treasury security that has an actual or interpolated (on a day count basis) maturity comparable to the remaining term of the Offered Securities to be redeemed.

 

“Comparable Redemption Treasury Price”, with respect to any Redemption Date, means (i) the average of the Redemption Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Redemption Reference Treasury Dealer Quotations (unless there is more than one highest or lowest quotation, in which case only

 

3

 

one such highest and/or lowest quotation shall be excluded), or (ii) if the Quotation Agent obtains fewer than four such Redemption Reference Treasury Dealer Quotations, the average of all such Redemption Reference Treasury Dealer Quotations.

 

“Quotation Agent” means a Redemption Reference Treasury Dealer appointed as such agent by the Company.

 

“Redemption Reference Treasury Dealer” means four primary U.S. Government securities dealers in the United States selected by the Company.

 

“Redemption Reference Treasury Dealer Quotations”, with respect to each Redemption Reference Treasury Dealer and any Redemption Date, means the average, as determined by the Quotation Agent, of the bid and offer prices at 11:00 a.m. New York City time for the Comparable Redemption Treasury Issue (expressed in each case as a percentage of its principal amount) for settlement on the Redemption Date quoted in writing to the Quotation Agent by such Redemption Reference Treasury Dealer on the third Business Day preceding such Redemption Date.

 

(7)                                  The Offered Securities will not have the benefit of any sinking fund.

 

(8)                                  Except as provided herein, the holders of the Offered Securities shall have no special rights in addition to those provided in the Base Indenture upon the occurrence of any particular events.

 

(9)                                  The Offered Securities will be general unsecured and unsubordinated obligations of the Company and will be ranked equally among themselves.

 

(10)                            The Offered Securities are not convertible into shares of common stock or other securities of the Company.

 

(11)                            The additional Event of Default and restrictive covenants set forth in Sections 1.3 and 1.4 shall be applicable to the Offered Securities.

 

Section 1.2                                      Additional Defined Terms.

 

As used herein, the following defined terms shall have the following meanings with respect to the Offered Securities only:

 

“Accounts Receivable” of any Person means the accounts receivable of such Person generated by the sale of inventory to third-party customers in the ordinary course of business.

 

“Attributable Debt”, in connection with a Sale and Lease-Back Transaction, as of any particular time, means the aggregate of present values (discounted at a rate that, at the inception of the lease, represents the effective interest rate that the lessee would have incurred to borrow over a similar term the funds necessary to purchase the leased assets) of the obligations of the Company or any Restricted Subsidiary for net rental payments during the remaining term of the applicable lease, including any period for which such lease has been extended or, at the option of the lessor, may be extended.  The term “net rental payments” under any lease of any period shall

 

4

 

mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including any amounts required to be paid by such lessee, whether or not designated as rental or additional rental, on account of maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges required to be paid by such lessee thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges.

 

“Below Investment Grade Rating Event” means the Offered Securities are rated below an Investment Grade Rating by at least two of the Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Offered Securities is under publicly announced consideration for possible downgrade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall be deemed not to have occurred in respect of a particular Change of Control (and thus shall be deemed not to be a Below Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event) if the rating agencies making the reduction in rating to which this definition would otherwise apply do not publicly announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event).

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

 

“Change of Control” means the occurrence of any of (1) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of Parent and its subsidiaries taken as a whole to any person or group of persons for purposes of Section 13(d) of the Exchange Act other than Parent or one of its subsidiaries or a person controlled by Parent or one of its subsidiaries; (2) consummation of any transaction (including any merger or consolidation) the result of which is that  any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than Parent’s or its subsidiaries’ employee benefit plans, becomes the beneficial owner (as defined in Rules 13(d)(3) and 13(d)(5) under the Exchange Act), directly or indirectly, of more than 50% of the outstanding voting stock of Parent, measured by voting power rather than number of shares; or (3) the replacement of a majority of the board of directors of Parent over a two-year period from the directors who constituted the board of directors of Parent at the beginning of such period, and such replacement shall not have been approved by at least a majority of the board of directors of Parent then still in office (either by a specific vote or by approval of a proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination) who either were members of such board of directors at the beginning of such period or whose election as a member of such board of directors was previously so approved; provided, that, a transaction effected to create a holding company for Parent will not be deemed to involve a Change of Control if: (1) pursuant to such

 

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transaction Parent becomes a direct or indirect wholly-owned subsidiary of such holding company and (2) the direct or indirect holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of Parent’s voting stock immediately prior to that transaction.  Following any such transaction, references in this definition to Parent shall be deemed to refer to such holding company.  For purposes of this definition, “voting stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.

 

“Consolidated Net Worth” at any date means total assets less total liabilities, in each case appearing on the most recently prepared consolidated balance sheet of Parent and its subsidiaries as of the end of a fiscal quarter of Parent, prepared in accordance with United States generally accepted accounting principles as in effect on the date of the consolidated balance sheet.

 

“Consolidated Tangible Assets” at any date means total assets less all intangible assets appearing on the most recently prepared consolidated balance sheet of Parent and its subsidiaries as of the end of a fiscal quarter of Parent, prepared in accordance with United States generally accepted accounting principles as in effect on the date of the consolidated balance sheet.  “Intangible assets” means the amount (if any) stated under the heading “Intangible assets, net” or under any other heading of intangible assets separately listed, in each case on the face of such consolidated balance sheet.

 

“Fitch” means Fitch Ratings Ltd.

 

“Funded Indebtedness” means any Indebtedness maturing by its terms more than one year from the date of the determination thereof, including any Indebtedness renewable or extendible at the option of the obligor to a date later than one year from the date of the determination thereof.

 

“Indebtedness” means, without duplication, the principal amount (such amount being the face amount or, with respect to original issue discount bonds or zero coupon notes, bonds or debentures or similar securities, determined based on the accreted amount as of the date of the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent prepared in accordance with United States generally accepted accounting principles as in effect on the date of such consolidated balance sheet) of (i) all obligations for borrowed money, (ii) all obligations evidenced by debentures, notes or other similar instruments, (iii) all obligations in respect of letters of credit or bankers acceptances or similar instruments or reimbursement obligations with respect thereto (such instruments to constitute Indebtedness only to the extent that the outstanding reimbursement obligations in respect thereof are collateralized by cash or cash equivalents reflected as assets on a balance sheet prepared in accordance with United States generally accepted accounting principles), (iv) all obligations to pay the deferred purchase price of property or services, except (A) trade and similar accounts payable and accrued expenses, (B) employee compensation, deferred compensation and pension obligations, and other obligations arising from employee benefit programs and agreements or other similar employment arrangements, (C) obligations in respect of customer advances received and (D) obligations in connection with earnout and holdback

 

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agreements, in each case in the ordinary course of business, (v) all obligations as lessee to the extent capitalized in accordance with United States generally accepted accounting principles and (vi) all Indebtedness of others consolidated in such balance sheet that is guaranteed by the Company or any of its Subsidiaries or for which the Company or any of its Subsidiaries is legally responsible or liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others).

 

“Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P.

 

“Moody’s” means Moody’s Investor Services Inc.

 

“Non-Recourse Indebtedness” means Indebtedness upon the enforcement of which recourse may be had by the holder(s) thereof only to identified assets of Parent or the Company or any Subsidiary of Parent or the Company and not to Parent or the Company or any Subsidiary of Parent or the Company personally (subject to, for the avoidance of doubt, customary exceptions contained in non-recourse financings to the non-recourse nature of the obligations thereunder).

 

“Principal Property” means any U.S. manufacturing, processing or assembly plant or any U.S. warehouse or distribution facility of the Parent or any of its Subsidiaries that is used by any U.S. Subsidiary of the Company and (A) is owned by the Parent or any Subsidiary of the Parent on the date hereof, (B) the initial construction of which has been completed after the date hereof, or (C) is acquired after the date hereof, in each case, other than any such plants, facilities, warehouses or portions thereof, that in the opinion of the Board of Directors of the Company, are not collectively of material importance to the total business conducted by the Parent and its subsidiaries as an entirety, or that has a net book value (excluding any capitalized interest expense), on the date hereof in the case of clause (A) of this definition, on the date of completion of the initial construction in the case of clause (B) of this definition or on the date of acquisition in the case of clause (C) of this definition, of less than the greater of $50,000,000 and 0.5% of Consolidated Tangible Assets on the consolidated balance sheet of Parent and its subsidiaries as of the applicable date.

 

“Qualifying Subsidiary” means a U.S. Subsidiary, the total Accounts Receivable of which exceeds the greater of $2.5 million and 0.20% of the amount stated under the heading “Accounts receivable, net of allowance for doubtful accounts,” or its equivalent, appearing on the most recently prepared consolidated balance sheet of Parent and its subsidiaries as of the end of a fiscal quarter of Parent, prepared in accordance with United States generally accepted accounting principles.

 

“Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch, Moody’s or S&P ceases to rate the Offered Securities or fails to make a rating of the Offered Securities publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a resolution of the Company’s Board

 

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of Directors) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be.

 

“Restricted Subsidiary” means any Subsidiary of the Company that owns or leases a Principal Property.

 

“Sale and Lease-Back Transaction” means an arrangement with any Person providing for the leasing by the Company or a Restricted Subsidiary of any Principal Property whereby such Principal Property has been or is to be sold or transferred by the Company or a Restricted Subsidiary to such Person other than Parent, the Company or any of their respective Subsidiaries; provided, however, that the foregoing shall not apply to any such arrangement involving a lease for a term, including renewal rights, for not more than three years.

 

“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

 

“U.S. Subsidiary” means any Subsidiary organized under the laws of a jurisdiction of the United States or any political subdivision thereof.

 

Section 1.3.                                   Additional Covenants.

 

The following additional covenants shall apply with respect to the Offered Securities so long as any of the Offered Securities remain Outstanding (but subject to defeasance, as provided in the Indenture):

 

(1)                                  Limitation on Liens.

 

The Company will not, and will not permit any Restricted Subsidiary to, issue, assume or guarantee any Indebtedness that is secured by a mortgage, pledge, security interest, lien or encumbrance (each a “lien”) upon any property that at the time of such issuance, assumption or guarantee constitutes a Principal Property, and the Company will not, and will not permit any U.S. Subsidiary that at the time of such issuance, assumption or guarantee is a Qualifying Subsidiary to, issue, assume or guarantee any Indebtedness that is secured by a lien upon such Qualifying Subsidiary’s Accounts Receivables, or any shares of stock of or Indebtedness issued by any such Restricted Subsidiary or such Qualifying Subsidiary, whether now owned or hereafter acquired, in each case without effectively providing that, for so long as such lien shall continue in existence with respect to such secured Indebtedness, the Offered Securities (together with, if the Company shall so determine, any other Indebtedness of the Company ranking equally with the Offered Securities, it being understood that for purposes hereof, Indebtedness which is secured by a lien and Indebtedness which is not so secured shall not, solely by reason of such lien, be deemed to be of different ranking) shall be equally and ratably secured by a lien ranking ratably with or equal to (or at the Company’s option prior to) such secured Indebtedness; provided, however, that the foregoing covenant shall not apply to:

 

(a)                                  liens existing on the date the Offered Securities are first issued;

 

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(b)                                 liens on the stock, assets or Indebtedness of a Person existing at the time such Person becomes a Restricted Subsidiary, unless created in contemplation of such Person becoming a Restricted Subsidiary;

 

(c)                                  liens on any assets or Indebtedness of a Person existing at the time such Person is merged with or into or consolidated with or acquired by the Company or a Restricted Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a corporation or firm as an entirety or substantially as an entirety by the Company or any Restricted Subsidiary;

 

(d)                                 liens on any Principal Property existing at the time of acquisition thereof by the Company or any Restricted Subsidiary, or liens to secure the payment of the purchase price of such Principal Property by the Company or any Restricted Subsidiary, or to secure any Indebtedness incurred, assumed or guaranteed by the Company or a Restricted Subsidiary for the purpose of financing all or any part of the purchase price of such Principal Property or improvements or construction thereon, which Indebtedness is incurred, assumed or guaranteed prior to, at the time of or within one year after such acquisition (or in the case of real property, completion of such improvement or construction or commencement of full operation of such property, whichever is later); provided, however, that in the case of any such acquisition, construction or improvement, the lien shall not apply to any Principal Property theretofore owned by the Company or a Restricted Subsidiary, other than the Principal Property so acquired, constructed or improved (and accessions thereto and improvements and replacements thereof and the proceeds of the foregoing);

 

(e)                                  liens securing Indebtedness owing by any subsidiary to the Company, Parent or a subsidiary thereof or by the Company to Parent;

 

(f)                                    liens in favor of the United States or any State thereof, or any department, agency or instrumentality or political subdivision of the United States of America or any State thereof, or in favor of any other country or any political subdivision thereof, to secure partial, progress, advance or other payments pursuant to any contract, statute, rule or regulation or to secure any Indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price (or, in the case of real property, the cost of construction or improvement) of the Principal Property or assets subject to such liens (including liens incurred in connection with pollution control, industrial revenue or similar financings);

 

(g)                                 pledges, liens or deposits under workers’ compensation or similar legislation, and liens thereunder that are not currently dischargeable, or in connection with bids, tenders, contracts (other than for the payment of money) or leases to which the Company or any subsidiary is a party, or to secure the public or statutory obligations of the Company or any subsidiary, or in connection with obtaining or maintaining self-insurance, or to obtain the benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to secure surety, performance, appeal or customs bonds to which the Company or any subsidiary is a party, or in litigation or other proceedings in connection with the matters heretofore

 

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referred to in this clause, such as interpleader proceedings, and other similar pledges, liens or deposits made or incurred in the ordinary course of business;

 

(h)                                 liens created by or resulting from any litigation or other proceeding that is being contested in good faith by appropriate proceedings, including liens arising out of judgments or awards against the Company or any subsidiary with respect to which the Company or such subsidiary in good faith is prosecuting an appeal or proceedings for review or for which the time to make an appeal has not yet expired; or final unappealable judgment liens which are satisfied within 15 days of the date of judgment; or liens incurred by the Company or any subsidiary for the purpose of obtaining a stay or discharge in the course of any litigation or other proceeding to which the Company or such subsidiary is a party;

 

(i)                                     liens for taxes or assessments or governmental charges or levies not yet due or delinquent; or that can thereafter be paid without penalty, or that are being contested in good faith by appropriate proceedings; landlord’s liens on property held under lease; and any other liens or charges incidental to the conduct of the business of the Company or any subsidiary, or the ownership of their respective assets, that were not incurred in connection with the borrowing of money or the obtaining of advances or credit and that, in the opinion of the Board of Directors of the Company, do not materially impair the use of such assets in the operation of the business of the Company or such subsidiary or the value of such Principal Property or assets for the purposes of such business;

 

(j)                                     liens to secure the Company’s or any subsidiary’s obligations under agreements with respect to interest rate swap, spot, forward, future and option transactions, entered into in the ordinary course of business;

 

(k)                                  liens on (including securitization programs with respect to) accounts receivable (including any accounts receivable constituting or evidenced by chattel paper, instruments or intangibles (as defined in the Uniform Commercial Code of the State of New York) (i) existing at the time of acquisition thereof by the Company or any U.S. Subsidiary or (ii) of a Person existing at the time such Person is merged with or into or consolidated with or acquired by the Company or any U.S. Subsidiary; provided that such liens were in existence, or granted or required to be granted or otherwise attach pursuant to any agreement in existence, prior to, and were not granted or such agreement was not entered into (as applicable) in contemplation of, such acquisition, merger or consolidation and such liens do not extend to any assets other than accounts receivable (including any accounts receivable constituting or evidenced by chattel paper, instruments or intangibles (as so defined) and rights (contractual and other) and collateral related thereto and proceeds of the foregoing and any related deposit accounts containing such proceeds;

 

(l)                                     liens not permitted by the foregoing clauses (a) to (k), inclusive, if at the time of, and after giving effect to, the creation or assumption of any such lien, the aggregate amount (without duplication) of all outstanding Indebtedness of the Company and its Restricted Subsidiaries secured by all such liens on such Principal Properties and all outstanding Indebtedness of the Company and its Qualifying Subsidiaries secured by

 

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all such liens on Accounts Receivable not so permitted by the foregoing clauses (a) through (k), inclusive, together with the Attributable Debt in respect of Sale and Lease-Back Transactions permitted by paragraph (a) under subsection (2) below do not exceed the greater of $1,500,000,000 and 10% of Consolidated Net Worth; and

 

(m)                               any extension, renewal or replacement (or successive extensions, renewals or replacements) in whole or in part, of any lien referred to in the foregoing clauses (a) to (l), inclusive; provided, however, that the principal amount of Indebtedness secured thereby unless otherwise excepted under clauses (a) through (l) shall not exceed the principal amount of Indebtedness (plus the amount of any unused revolving credit or similar commitments) so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the assets (or any replacements therefor) that secured the lien so extended, renewed or replaced (plus improvements and construction on real property).

 

(2)                                  Limitation on Sale/Leaseback Transactions.

 

The Company will not, and will not permit any Restricted Subsidiary to, enter into any Sale and Lease-Back Transaction unless:

 

(a)                                  the Company or such Restricted Subsidiary, at the time of entering into a Sale and Lease-Back Transaction, would be entitled to incur Indebtedness secured by a lien on the Principal Property to be leased in an amount at least equal to the Attributable Debt in respect of such Sale and Lease-Back Transaction, without equally and ratably securing the Securities pursuant to subsection (1) above; or

 

(b)                                 the direct or indirect proceeds of the sale of the Principal Property to be leased are at least equal to the fair value of such Principal Property (as determined by the Company’s Board of Directors) and an amount equal to the net proceeds from the sale of the property or assets so leased is applied, within 180 days of the effective date of any such Sale and Lease-Back Transaction, to the purchase or acquisition (or, in the case of real property, commencement of the construction) of property or assets or to the retirement (other than at maturity or pursuant to a mandatory sinking fund or mandatory redemption provision) of Securities, or of Funded Indebtedness of the Company or a consolidated Subsidiary ranking on a parity with or senior to the Securities; provided that there shall be credited to the amount of net worth proceeds required to be applied pursuant to this clause (b) an amount equal to the sum of (i) the principal amount of Securities delivered within 180 days of the effective date of such Sale and Lease-Back Transaction to the Trustee for retirement and cancellation and (ii) the principal amount of other Funded Indebtedness voluntarily retired by the Company within such 180-day period, excluding retirements of Securities and other Funded Indebtedness as a result of conversions or pursuant to mandatory sinking fund or mandatory prepayment provisions.

 

(3)                                  Change of Control Triggering Event.

 

(a)                                  Upon the occurrence of a Change of Control Triggering Event, unless the Company has exercised its right to redeem the Offered Securities pursuant to Section 1.1(6)

 

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hereof or Section 14.01 of the Base Indenture, each Holder will have the right to require that the Company purchase all or a portion, in $1,000 increments (provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof), of such Holder’s Offered Securities pursuant to Section 1.3(3)(b) hereof (the “Change of Control Offer”), at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase.

 

(b)           Within 30 days following the date upon which the Change of Control Triggering Event occurred, or at the Company’s option, prior to any Change of Control, but after the public announcement of the Change of Control, the Company shall send, by first class mail, a notice to each Holder, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer.  Such notice shall describe the transaction or transactions that constitute the Change of Control and shall state:

 

(A)          that the Change of Control Offer is being made pursuant to this Section 1.3(3) of this Sixth Supplemental Indenture;

 

(B)           that the Company is required to offer to purchase all of the outstanding principal amount of Offered Securities, the purchase price and, that on the date specified in such notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed, other than as may be required by law (the “Change of Control Payment Date”), the Company shall repurchase the Offered Securities validly tendered and not withdrawn pursuant to this Section 1.3(3);

 

(C)           if mailed prior to the date of consummation of the Change of Control, shall state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date;

 

(D)          that any Offered Security not tendered or accepted for payment shall continue to accrue interest;

 

(E)           that, unless the Company defaults in making such payment, Offered Securities accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest after the Change of Control Payment Date;

 

(F)           that Holders electing to have an Offered Security purchased pursuant to a Change of Control Offer may elect to have all or any portion of such Offered Security purchased;

 

(G)           that Holders of Offered Securities electing to have Offered Securities purchased pursuant to a Change of Control Offer shall be required to surrender their Offered Securities, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Offered Security, or such other customary documents of surrender and transfer as the Company may reasonably request, duly completed, or transfer the Offered Security by book-entry transfer, to the

 

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paying agent at the address specified in the notice prior to the Change of Control Payment Date;

 

(H)          that Holders shall be entitled to withdraw their election if the Company, the Depositary or the paying agent, as the case may be, receives, not later than the expiration of the Change of Control Offer, a telegram, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Offered Security the Holder delivered for purchase and a statement that such Holder is withdrawing its election to have such Offered Security purchased;

 

(I)            that Holders whose Offered Securities are purchased only in part shall be issued new Securities equal in principal amount to the unpurchased portion of the Securities surrendered (or transferred by book-entry transfer); and

 

(J)            the CUSIP number, if any, printed on the Offered Securities being repurchased and that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Offered Securities.

 

(c)           The Company will not be required to make a Change of Control Offer if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for such an offer made by the Company and such third party purchases all Offered Securities properly tendered and not withdrawn under its offer.

 

(d)           The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Offered Securities pursuant to a Change of Control Offer.  To the extent that any securities laws or regulations conflict with the provisions of this Section 1.3(3), the Company shall comply with the applicable securities laws and regulations and shall be deemed not to have breached its obligations under this Section 1.3(3) by virtue thereof.

 

(4)           Redemption Upon Changes in Withholding Taxes.

 

Solely with respect to the Offered Securities, Section 14.01 of the Base Indenture shall be replaced in its entirety with the following:

 

The Offered Securities may be redeemed, as a whole but not in part, at the option of the Company, upon not less than 30 nor more than 90 days notice (which notice shall be irrevocable), at a redemption price equal to 100% of the principal amount thereof, together with accrued interest, if any, to the redemption date and Additional Amounts (as defined in Section 14.02), if any, if as a result of any amendment to, or change in, the laws or regulations of Luxembourg or Switzerland, or other jurisdiction in which the Company, Parent or any successor thereof may be organized, or the United States, as applicable, or any political subdivision thereof or therein having the power to tax (a “Taxing Jurisdiction”) or any change in the application or official interpretation of such laws, including any action taken by a taxing authority or a holding by a court of competent jurisdiction (regardless of whether such action or such holding is with

 

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respect to the Company or Parent), which amendment or change is announced or becomes effective after the date the Securities of such series are issued, Parent or the Company has become, or there is a material probability that Parent or the Company will become, obligated to pay Additional Amounts on the next date on which any amount would be payable with respect to the Securities of such series, and such obligation cannot be avoided by the use of commercially reasonable measures available to Parent or the Company, as the case may be; provided, however, that (a) no such notice of redemption may be given earlier than 90 days prior to the earliest date on which Parent or the Company, as the case may be, would be obligated to pay such Additional Amounts, and (b) at the time such notice of redemption is given, such obligation to pay such Additional Amounts remains in effect. Prior to the giving of any notice of redemption described in this paragraph, the Company shall deliver to the Trustee (i)(A) certificate signed by two directors of the Company stating that the obligation to pay Additional Amounts cannot be avoided by the Company taking commercially reasonable measures available to it or (B) a certificate signed by two Officers of Parent stating that the obligation to pay Additional Amounts cannot be avoided by Parent taking commercially reasonable measures available to it, as the case may be, and (ii) a written opinion of independent legal counsel to Parent or the Company, as the case may be, of recognized standing to the effect that the Company has or there is a material probability that it will become obligated to pay Additional Amounts as a result of a change, amendment, official interpretation or application described above and that Parent or the Company, as the case may be, cannot avoid the payment of such Additional Amounts by taking commercially reasonable measures available to it.

 

Section 1.4                                      Additional Event of Default.

 

The following additional event shall be established and shall constitute an “Event of Default” under Section 6.01(a) of the Base Indenture with respect to the Offered Securities so long as any of the Offered Securities remain Outstanding:

 

(9)           an event of default shall happen and be continuing with respect to the Company’s or Parent’s Indebtedness for borrowed money (other than Non-Recourse Indebtedness) under any indenture or other instrument evidencing or under which the Company or Parent shall have a principal amount outstanding (such amount with respect to original issue discount bonds or zero coupon notes, bonds or debentures or similar securities based on the accreted amount determined in accordance with United States generally accepted accounting principles and as of the date of the most recently prepared consolidated balance sheet of the Company or Parent, as the case may be) in excess of $100,000,000, and such event of default shall involve the failure to pay the principal of such Indebtedness on the final maturity date thereof after the expiration of any applicable grace period with respect thereto, or such Indebtedness shall have been accelerated so that the same shall have become due and payable prior to the date on which the same would otherwise have become due and payable, and such acceleration shall not be rescinded or annulled within ten Business Days after notice thereof shall have been given to the Company and Parent by the Trustee, or to the Company, Parent and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Securities; provided that, if such event of default under such indenture or instrument shall be remedied or cured by the Company or Parent or waived by the requisite holders of such

 

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Indebtedness, then the Event of Default hereunder by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of the Securityholders, and provided further, however, that subject to the provisions of Sections 7.01 and 7.02, the Trustee shall not be charged with knowledge of any such event of default unless written notice thereof shall have been given to the Trustee by the Company or Parent, as the case may be, by the holder or an agent of the holder of any such Indebtedness, by the trustee then acting under any indenture or other instrument under which such default shall have occurred, or by the Holders of not less than 25% in the aggregate principal amount of Outstanding Securities.

 

ARTICLE II

 

MISCELLANEOUS

 

Section 2.1.                                   Definitions.

 

Capitalized terms used but not defined in this Sixth Supplemental Indenture shall have the meanings ascribed thereto in the Base Indenture.

 

Section 2.2.                                   Confirmation of Indenture.

 

The Base Indenture, as supplemented and amended by this Sixth Supplemental Indenture, is in all respects ratified and confirmed, and the Base Indenture, this Sixth Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.

 

Section 2.3.                                   Concerning the Trustee.

 

In carrying out the Trustee’s responsibilities hereunder, the Trustee shall have all of the rights, protections and immunities which it possesses under the Indenture.  The recitals contained herein and in the Offered Securities, except the Trustee’s certificate of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Sixth Supplemental Indenture or of the Offered Securities.  The Trustee shall not be accountable for the use or application by the Company of the Offered Securities or the proceeds thereof.

 

Section 2.4.                                   Governing Law.

 

This Sixth Supplemental Indenture and the Offered Securities shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of laws principles that would require the application of any other law.

 

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Section 2.5.                                   Separability.

 

In case any provision in this Sixth Supplemental Indenture shall for any reason be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 2.6.                                   Counterparts.

 

This Sixth Supplemental Indenture may be executed in any number of counterparts each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

 

Section 2.7                                      No Benefit.

 

Nothing in this Sixth Supplemental Indenture, express or implied, shall give to any Person other than the parties hereto and their successors or assigns, and the holders of the Offered Securities, any benefit or legal or equitable rights, remedy or claim under this Sixth Supplemental Indenture or the Base Indenture.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Sixth Supplemental Indenture to be duly executed all as of the day and year first above written.

 

 

	
 
    	
TYCO ELECTRONICS GROUP S.A.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mario Calastri
    
	
 
    	
 
    	
Name:
    	
Mario   Calastri
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
TE CONNECTIVITY LTD.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Terrence R. Curtin
    
	
 
    	
 
    	
Name:
    	
Terrence   R. Curtin
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President & Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
DEUTSCHE BANK TRUST COMPANY AMERICAS
    
	
 
    	
as Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Carol Ng
    
	
 
    	
 
    	
Name:
    	
Carol   Ng
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David Contino
    
	
 
    	
 
    	
Name:
    	
David   Contino
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

 

EXHIBIT A

FORM OF 1.600% SENIOR NOTES

 

[Insert the Private Placement Legend and/or the Global Security legend, as applicable]

 

1.600% SENIOR NOTES DUE 2015

 

	
No. [      ]
    	
$[              ]
    
	
CUSIP   No. [      ]
    	
 
    

 

TYCO ELECTRONICS GROUP S.A.

 

promises to pay to Cede & Co. or registered assigns, the principal sum of [              ] Dollars on [        ].

 

Interest Payment Dates: February 3 and August 3

 

Record Dates:  January 18 and July 18

 

Each holder of this Security (as defined below), by accepting the same, agrees to and shall be bound by the provisions hereof and of the Indenture described herein, and authorizes and directs the Trustee described herein on such holder’s behalf to be bound by such provisions.  Each holder of this Security hereby waives all notice of the acceptance of the provisions contained herein and in the Indenture and waives reliance by such holder upon said provisions.

 

This Security shall not be entitled to any benefit under the Indenture, or be valid or become obligatory for any purpose, until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee.  The provisions of this Security are continued on the reverse side hereof, and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be signed in accordance with Section 2.04 of the Indenture.

 

Date:  [        ]

 

	
 
    	
TYCO   ELECTRONICS GROUP S.A.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:   
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
[If   second signature is applicable:]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:   
    
	
 
    	
Title:
    

 

A-1

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
 
    	
DEUTSCHE   BANK TRUST COMPANY AMERICAS, as Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
Dated:   [        ]
    

 

A-2

 

GUARANTEE

 

For value received, TE CONNECTIVITY LTD. hereby absolutely, unconditionally and irrevocably guarantees to the holder of this Security the payment of principal of, premium, if any, and interest on, the Security upon which this Guarantee is set forth in the amounts and at the time when due and payable whether by declaration thereof or otherwise, and interest on the overdue principal and interest, if any, of such Security, if lawful, to the holder of such Security and the Trustee on behalf of the holders, all in accordance with and subject to the terms and limitations of such Security and Article XV of the Indenture.  This Guarantee will not become effective until the Trustee or Authenticating Agent duly executes the certificate of authentication on this Security.  This Guarantee shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles thereof.

 

	
Dated:   [        ]
    	
 
    	
 
    
	
 
    	
TE   CONNECTIVITY LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-3

 

[FORM OF REVERSE OF NOTE]

 

Tyco Electronics Group S.A.

 

1.600% Senior Notes due 2015

 

This security is one of a duly authorized series of debt securities of Tyco Electronics Group S.A. (the “Company”) issued or to be issued in one or more series under and pursuant to an Indenture for the Company’s unsubordinated debt securities, dated as of September 25, 2007 (the “Base Indenture”), duly executed and delivered by and among the Company, TE Connectivity Ltd. (“Parent”) and Deutsche Bank Trust Company Americas (the “Trustee”), as supplemented by the Sixth Supplemental Indenture, dated as of February 3, 2012 (the “Sixth Supplemental Indenture”), by and among the Company, Parent and the Trustee.  The Base Indenture as supplemented and amended by the Sixth Supplemental Indenture is referred to herein as the “Indenture.”  By the terms of the Base Indenture, the debt securities issuable thereunder are issuable in series that may vary as to amount, date of maturity, rate of interest and in other respects as provided in the Base Indenture.  This security is one of the series designated on the face hereof (individually, a “Security,” and collectively, the “Securities”), and reference is hereby made to the Indenture for a description of the rights, limitations of rights, obligations, duties and immunities of the Trustee, the Company, Parent and the holders of the Securities (the “Securityholders”).  Capitalized terms used herein and not otherwise defined shall have the meanings given them in the Base Indenture or the Sixth Supplemental Indenture, as applicable.

 

1.  Interest.  The Company promises to pay interest on the principal amount of this Security at an annual rate of 1.600%, subject to adjustment as provided below.  The Company will pay interest semi-annually on February 3 and August 3 of each year (each such day, an “Interest Payment Date”).  If any Interest Payment Date, redemption date or maturity date of this Security is not a Business Day, then payment of interest or principal (and premium, if any) shall be made on the next succeeding Business Day with the same force and effect as if made on the date such payment was due, and no interest shall accrue for the period after such date to the next succeeding Business Day.  Interest on the Securities will accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from the date of issuance; provided that, if there is no existing Default in the payment of interest, and if this Security is authenticated between a regular record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; and provided, further, that the first Interest Payment Date shall be August 3, 2012.  Interest will be computed on the basis of a 360-day year of twelve 30-day months.  In certain circumstances, liquidated damages may be payable as provided in Section 6.01 of the Indenture.  Any such liquidated damages shall be payable in the same manner and on the same dates as the stated interest payable on this Security.

 

2.  Method of Payment.  The Company will pay interest on the Securities (except defaulted interest), if any, to the persons in whose name such Securities are registered at the close of business on the regular record date referred to on the facing page of this Security for such interest installment.  In the event that the Securities or a portion thereof are called for redemption and the Redemption Date is subsequent to a regular record date with respect to any

 

A-4

 

Interest Payment Date and prior to such Interest Payment Date, interest on such Securities will be paid upon presentation and surrender of such Securities as provided in the Indenture.  The principal of and the interest on the Securities shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained for that purpose in accordance with the Indenture.

 

3.  Paying Agent and Registrar.  Initially, Deutsche Bank Trust Company Americas, the Trustee, will act as paying agent and Security Registrar.  The Company may change or appoint any paying agent or Security Registrar without notice to any Securityholder.  Parent, the Company or any of their Subsidiaries may act in any such capacity.

 

4.  Indenture.  The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (“TIA”) as in effect on the date the Indenture is qualified.  The Securities are subject to all such terms, and Securityholders are referred to the Indenture and TIA for a statement of such terms.  The Securities are unsecured general obligations of the Company and constitute the series designated on the face hereof as the “1.600% Senior Notes due 2015”, initially limited to $250,000,000 in aggregate principal amount.  The Company will furnish to any Securityholder upon written request and without charge a copy of the Base Indenture and the Sixth Supplemental Indenture.  Requests may be made to: Tyco Electronics Group S.A., 17, boulevard Grande-Duchesse Charlotte, L-1331 Luxembourg, Attention: The Managing Directors.

 

5.  Optional Redemption.  The Securities will be subject to redemption at the option of the Company on any date prior to the maturity date, in whole or from time to time in part, in $1,000 increments (provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof), on written notice given to the Securityholders thereof not less than 30 days nor more than 90 days prior to the date fixed for redemption in such notice (the “Redemption Date”), at a redemption price equal to the greater of (i) 100% of the principal amount of such Securities to be redeemed and (ii) as determined by the Quotation Agent and delivered to the Trustee, the sum of the present values of the remaining scheduled payments of principal and interest thereon due on any date after the Redemption Date (excluding the portion of  interest that will be accrued and unpaid to and including the Redemption Date) discounted from their scheduled date of payment to the Redemption Date (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Redemption Treasury Rate plus 20 basis points (such greater amount is referred to herein as the “Redemption Price”), plus, in either the case of clause (i) or clause (ii), accrued and unpaid interest and Special Interest, if any, thereon to the Redemption Date.  This Security is also subject to redemption to the extent provided in Article XIV of the Indenture.

 

If the giving of the notice of redemption is completed as provided in the Indenture, interest on such Securities or portions of Securities shall cease to accrue on and after the Redemption Date, unless the Company shall default in the payment of such Redemption Price and accrued interest with respect to any such Security or portion thereof.

 

The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Securities.

 

A-5

 

6.  Change of Control Triggering Event.  Upon the occurrence of a Change of Control Triggering Event, unless the Company has exercised its right to redeem this Security, the holder of this Security will have the right to require that the Company purchase all or a portion, in $1,000 increments (provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof), of this Security at a purchase price equal to 101% of the principal amount hereof plus accrued and unpaid interest, if any, to the date of purchase.  Within 30 days following the date upon which the Change of Control Triggering Event occurred, or at the Company’s option, prior to any Change of Control, but after the public announcement of the Change of Control, the Company shall send, by first class mail, a notice to each Holder, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer.

 

7.  Denominations, Transfer, Exchange.  The Securities are in registered form without coupons in the denominations of $2,000 or any integral multiple of $1,000 in excess thereof.  The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture.  The Securities may be presented for exchange or for registration of transfer (duly endorsed or with the form of transfer endorsed thereon duly executed if so required by the Company or the Security Registrar) at the office of the Security Registrar or at the office of any transfer agent designated by the Company for such purpose.  No service charge will be made for any registration of transfer or exchange, but a Securityholder may be required to pay any applicable taxes or other governmental charges.  If the Securities are to be redeemed, the Company will not be required to:  (i) issue, register the transfer of, or exchange any Security during a period beginning at the opening of business 15 days before the day of mailing of a notice of redemption of less than all of the Outstanding Securities of the same series and ending at the close of business on the day of such mailing; (ii) register the transfer of or exchange any Security of any series or portions thereof selected for redemption, in whole or in part, except the unredeemed portion of any such Security being redeemed in part; nor (iii) register the transfer of or exchange a Security of any series between the applicable record date and the next succeeding Interest Payment Date.

 

8.  Persons Deemed Owners.  The registered Securityholder may be treated as its owner for all purposes.

 

9.  Repayment to Parent or the Company.  Any funds or Governmental Obligations deposited with any paying agent or the Trustee, or then held by Parent or the Company, in trust for payment of principal of, premium, if any, or interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for at least one year after the date upon which the principal of, premium, if any, or interest on such Securities shall have respectively become due and payable, shall be repaid to Parent or the Company, as applicable, or (if then held by Parent or the Company) shall be discharged from such trust.  After return to the Company or Parent, Holders entitled to the money or securities must look to the Company or Parent, as applicable, for payment as unsecured general creditors.

 

10.  Amendments, Supplements and Waivers.  The Base Indenture contains provisions permitting the Company, Parent and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the Outstanding Securities to enter into supplemental indentures for the purpose of adding, changing or eliminating any provisions to the Base Indenture or supplemental indenture or indentures or of modifying in any manner not covered

 

A-6

 

elsewhere in the Base Indenture the rights of the holders of the Securities of such series; provided, however, that no such supplemental indenture, without the consent of the holders of each Security then Outstanding and affected thereby, shall:  (i) extend a fixed maturity of or any installment of principal of any Securities of any series or reduce the principal amount thereof, or reduce the amount of principal of any original issue discount security that would be due and payable upon declaration of acceleration of the maturity thereof; (ii) reduce the rate of or extend the time for payment of interest of any Security of any series; (iii) reduce the premium payable upon the redemption of any Security; (iv) make any Security payable in Currency other than that stated in the Security; (v) impair the right to institute suit for the enforcement of any payment on or after the fixed maturity thereof (or in the case or redemption, on or after the redemption date); or (vi) reduce the percentage of Securities, the holders of which are required to consent to any such supplemental indenture or indentures.  The Base Indenture also contains provisions permitting the holders of not less than a majority in aggregate principal amount of the Outstanding Securities of each series affected thereby, on behalf of all of the holders of the securities of such series, to waive any past Default under the Base Indenture, and its consequences, except a Default in the payment of the principal of, premium, if any, or interest on any security of such series or a Default in respect of a covenant or provision of the Base Indenture that cannot be modified or amended without the consent of the holder of each Outstanding Security of such affected series.  Any such consent or waiver by the registered Securityholder shall be conclusive and binding upon such holder and upon all future holders and owners of this Security and of any Security issued in exchange for this Security or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon this Security.

 

11.  Defaults and Remedies.  If an Event of Default with respect to the securities of a series issued pursuant to the Base Indenture occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the Securities of such series then Outstanding, by notice in writing to the Company and Parent (and to the Trustee if notice is given by such holders), may declare the unpaid principal of, premium, if any, and accrued interest, if any, due and payable immediately.  Subject to the terms of the Indenture, if an Event of Default under the Indenture shall occur and be continuing, the Trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any of the holders, unless such holders have offered the Trustee indemnity satisfactory to it.  Upon satisfaction of certain conditions set forth in the Indenture, the holders of a majority in principal amount of the Outstanding Securities of a series issued pursuant to the Base Indenture will have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the securities of such series.

 

12.  Trustee, Paying Agent and Security Registrar May Hold Securities.  The Trustee, subject to certain limitations imposed by the TIA, or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.

 

13.  No Recourse Against Others.  No recourse under or upon any obligation, covenant or agreement of the Indenture, or of any Security, or for any claim based thereon or otherwise in respect hereof or thereof, shall be had against any incorporator, stockholder, officer or director,

 

A-7

 

past, present or future as such, of Parent or the Company or of any predecessor or successor corporation, either directly or through Parent or the Company or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that the Indenture and the obligations issued hereunder and thereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, shareholders, officers or directors as such, of Parent or the Company or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness authorized by the Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, shareholder, officer or director as such, because of the creation of the indebtedness authorized by the Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the acceptance of the Securities.

 

14.  Discharge of Indenture.  The Indenture contains certain provisions pertaining to defeasance, which provisions shall for all purposes have the same effect as if set forth herein.

 

15.  Authentication.  This Security shall not be valid until the Trustee signs the certificate of authentication attached to the other side of this Security.

 

16.  Guarantees.  All payments by the Company under the Indenture and this Security are fully and unconditionally guaranteed to the holder of this Security by Parent, as provided in the related Guarantee and the Indenture.

 

17.  Additional Amounts.  The Company and Parent are obligated to pay Additional Amounts on this Security to the extent provided in Article XIV of the Indenture.

 

18.  Abbreviations.  Customary abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

19.  Governing Law.  The Base Indenture, the Sixth Supplemental Indenture and this Security (and the Guarantee hereon) shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State.

 

A-8

 

ASSIGNMENT FORM

 

To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to

	
 
    
	
 
    
	
(Insert assignee’s soc. sec. or tax I.D. no.)
    
	
 

 
    
	
 

 
    
	
 

 
    
	
 

 
    
	
(Print or type assignee’s name, address and zip code)
    

 

and irrevocably appoint                                                                                                                                                     

agent to transfer this Security on the books of the Company.  The agent may substitute another to act for him.

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Your   Signature:
    	
 
    	
 
    
	
 
    	
(Sign   exactly as your name appears on the face of this Security)
    
	
 
    
	
 
    
	
Signature   Guarantee:
    	
 
    	
 
    	
 
    
									

 

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Security purchased by the Company pursuant to Section 1.3(3) of the Sixth Supplemental Indenture, check the box:

 

o  1.3(3) Change of Control Triggering Event

 

If you want to elect to have only part of this Security purchased by the Company pursuant to Section 1.3(3) of the Sixth Supplemental Indenture, state the amount:  $                    .

 

	
 
    	
Date:
    	
 
    	
 
    	
Your Signature:
    
	
 
    	
 
    	
 
    	
 
    	
(Sign   exactly as your name appears on the other side of the Security)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tax I.D. number
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature Guarantee:
    	
 
    	
 
    
	
 
    	
 
    	
(Signature   must be guaranteed by a participant in a recognized signature guarantee   medallion program)

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