LensCrafters 2005 Annual Report Download - page 150

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NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS | 149 <
into an agreement to be acquired by the Company for US$ 22.50 per share “without having exposed
the company to the marketplace through fair and open negotiations with all potential bidders and/or an
active market check or open auction for sale of the company.” The complaint sought preliminary and
permanent injunctive relief against the merger, rescission of the merger if it is consummated, and/or
damages and other associated relief. The Company believed the action to be without merit. In January
2006, the plaintiff voluntarily dismissed this action without prejudice.
The Company is defendant in various other lawsuits arising in the ordinary course of business. It is the
opinion of the management of the Company that it has meritorious defences against all outstanding
claims, which the Company will vigorously pursue, and that the outcome will not have a material
adverse effect on either the Company’s consolidated financial position or results of operations.
15. SUBSEQUENT EVENTS
On February 27, 2006, the Company announced a ten-year license agreement with Polo Ralph Lauren
Corp. for the design, production and worldwide distribution of prescription frames and sunglasses
under the Polo Ralph Lauren name. The agreement will begin on January 1, 2007. Terms include an
advance payment on royalties of Euro 169 million (US$ 199 million) that will mature over the ten-year term
of the agreement.
On March 10, 2006, the Company signed an amendment to the term and revolving credit facility
disclosed in Note 8 (d). The amended and restated agreement reduces the interest margin as defined
in the agreement, extends the termination date of the agreement to five years from the date the
amendment was signed and increases the borrowing capacity of Tranche C to Euro 725 million.