Exhibit 10.1
Execution Copy
AMENDMENT
NO. 2 TO CREDIT AGREEMENT
This Amendment No. 2 to Credit Agreement, dated
as of May __, 2009 (this “ Amendment ”), to the
364-Day Bridge Term Loan Credit Agreement, dated as of March 12,
2009 (as the same may be further amended, supplemented or otherwise
modified from time to time, the “ Credit Agreement
”), entered into among Pfizer Inc., a Delaware corporation
(the “ Borrower ”), the institutions from time
to time party thereto as Lenders (the “ Lenders
”) and JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders (in such capacity, the “
Administrative Agent ”), is entered into among the
Borrower, the Required Lenders and the Administrative
Agent. Capitalized terms used herein and not otherwise
defined herein shall have the meanings ascribed to them in the
Credit Agreement.
W i t n e s s e t h:
Whereas, the Borrower has requested that the
Credit Agreement be amended in certain respects as set forth
below;
Whereas, pursuant to Section 10.03 of the Credit
Agreement, the Credit Agreement may, under certain circumstances,
be amended with the written consent of the Required Lenders;
and
Whereas, the Borrower and the Required Lenders
have agreed, subject to the terms and conditions hereinafter set
forth, to amend the Credit Agreement pursuant to the provision of
Section 10.03 of the Credit Agreement referred to in the preceding
recital as set forth below;
Now, Therefore, in consideration of
the premises and the covenants and obligations contained herein,
the sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:
|
|
Amendments
to the Credit Agreement
|
The Credit Agreement is, effective as of the
Effective Date (as defined below), hereby amended as
follows:
(a) The
following definitions in Section 1.01 are amended and
restated in their entirety to read as follows:
“
Certain Significant Items ” shall mean substantive,
unusual items that are evaluated on an individual basis and may
represent items that are not part of the Borrower’s ongoing
business; items that, either as a result of their nature or size,
the Borrower would not expect to occur as part of its normal
business on a regular basis; items that would be non-recurring; or
items that relate to products it no longer sells. Certain
Significant Items shall include, but not be limited to, a major
non-acquisition-related restructuring charge and associated
implementation costs for a program which is specific in nature with
a defined term, such as those related to the Borrower’s
cost-reduction initiatives; charges related to certain sales or
disposals of products or facilities that do not qualify as
discontinued operations as defined by U.S. GAAP; amounts associated
with transition service agreements in support of discontinued
operations after sale; certain intangible asset impairments;
adjustments related to the resolution of certain tax positions; the
impact of adopting certain significant, event-driven tax
legislation, such as adjustments associated with charges
attributable to the repatriation of foreign earnings in accordance
with the American Jobs Creation Act of 2004; or possible charges
related to legal matters. Normal, ongoing defense costs of the
Borrower or settlements and accruals on legal matters made in the
normal course of its business would not be considered Certain
Significant Items.
“ EBITDA ” shall mean, with
respect to any Person, for any period, Consolidated Net Income
attributable to such Person for such period plus (a) the sum of, in
each case to the extent included in the calculation of such
Consolidated Net Income but without duplication,
(i) federal,
state, local or foreign income Taxes;
|
|
|
depreciation or
amortization expenses;
|
(iii) interest
expenses (net of interest income);
|
|
|
fees and
expenses related to the Acquisition (as such fees and expenses are
disclosed in the Borrower’s most recent financial statements
filed with the SEC);
|
(v) extraordinary,
non-recurring or unusual losses or expenses (including costs and
expenses related to the Borrower’s ongoing cost-reduction
initiatives including the cost reduction initiative program
announced January 2009, or a substantially similar cost reduction
initiative program created in conjunction with the Acquisition,
including implementation costs and restructuring costs not to
exceed $7,500,000,000 in the aggregate during the term of this
Agreement);
(vi) Purchase
Accounting Adjustments, less Purchase Accounting Adjustments
related to “Intangible amortization and other,” as
disclosed in the Borrower’s financial statements filed as an
exhibit to its Annual Report on Form 10-K or Quarterly Report on
Form 10-Q, as applicable;
(vii) discontinued
operations to the extent segregated in the Consolidated statements
of income, stockholders’ equity and cash flows of the
Borrower;
(viii) Identified
Legal Settlements; and
(ix) non-cash
Certain Significant Items not included above in clauses (i) through
(viii) and cash Certain Significant Items not included above in
clauses (i) through (viii) to the extent such items do not exceed
$1,000,000,000 in the aggregate for any such period,
in each case,
for such period, and minus (b) without duplication and to
the extent included in determining such Consolidated Net Income,
the sum of all income or gains attributed to such items for such
period; provided that (1) if the Acquisition or a Material
Transaction has occurred during such period, EBITDA shall be
determined for such period on a pro forma basis as if such Material
Transaction or the Acquisition has occurred on the first day of
such period and (2) if the cash consideration for the Acquisition
is financed with proceeds of Permitted Repurchase Debt of the type
described in clause (b) of the definition thereof incurred in the
period prior to the consummation of the Acquisition and the
Acquisition has occurred within ten days after the end of such
prior period, EBITDA shall be determined for such prior period on a
pro forma basis as if the Acquisition had occurred on the first day
of such prior period.
(b) The
following definitions are added to Section 1.01 and each
such defined term is to appear in its appropriate place in
alphabetical order as follows:
“
Identified Legal Settlements ” shall mean (i) up to
$2,313,000,000 in charges resulting from an agreement in principle
with the U.S. Department of Justice to resolve the previously
reported investigation regarding allegations of past off-label
promotional practices concerning Bextra, as well as certain other
open investigations, as disclosed in Footnote F in the
Borrower’s 2008 Financial Report filed as an exhibit to its
Form 10-K (ii) up to $936,000,000 related to the agreements and
agreements in principle to resolve certain NSAID litigation and
claims, as disclosed in Footnote F in the Borrower’s 2008
Financial Report filed as an exhibit to its Form 10-K, and (iii) on
or after the Funding Date, cash disbursements of up to $500,000,000
by Wyeth relating to litigation related to the diet drug commonly
referred to as “fen-phen”, as disclosed in Note 15
(“Contingencies and Commitments”) in its 2008 Financial
Report filed as an exhibit to its Form 10-K.
“
Purchase Accounting Adjustments ” shall mean all
non-cash purchase accounting adjustments and charges, including
charges for purchased in-process research and development, the
incremental charge to cost of sales from the sale of acquired
inventory that was written up to fair value and the incremental
charges related to the amortization of finite-lived intangible
assets for the increase to fair value.
(c) Schedule
3 of Exhibit G (Compliance Certificate) is hereby amended and
restated in its entirety in the form attached as Exhibit A
hereto.
|
|
Conditions
Precedent to the Effectiveness of this Amendment
|
This Amendment
shall become effective (the “Effective Date”) upon
satisfaction of the following conditions prece