Attached files
file | filename |
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S-1/A - FORM S-1/A - Molycorp, Inc. | d78447a1sv1za.htm |
EX-5.1 - EX-5.1 - Molycorp, Inc. | d78447a1exv5w1.htm |
EX-1.1 - EX-1.1 - Molycorp, Inc. | d78447a1exv1w1.htm |
EX-1.2 - EX-1.2 - Molycorp, Inc. | d78447a1exv1w2.htm |
EX-23.1 - EX-23.1 - Molycorp, Inc. | d78447a1exv23w1.htm |
EX-23.4 - EX-23.4 - Molycorp, Inc. | d78447a1exv23w4.htm |
EX-10.26 - EX-10.26 - Molycorp, Inc. | d78447a1exv10w26.htm |
Exhibit 3.3
Certificate of Designations of
[ ]% Series A Mandatory Convertible Preferred Stock of
Molycorp, Inc.
[ ]% Series A Mandatory Convertible Preferred Stock of
Molycorp, Inc.
Molycorp, Inc., a Delaware corporation (the Corporation), hereby certifies that, pursuant to
the provisions of Sections 103, 141 and 151 of the General Corporation Law of the State of
Delaware, (a) on January 21, 2011 the board of directors of the Corporation (the Board of
Directors) appointed a special committee (the Pricing Committee) and authorized the Pricing
Committee to determine the voting powers, designations, preferences, rights and qualifications,
limitations or restrictions and all other terms of the issuance of a series of preferred stock; and
(b) on [February __], 2011, the Pricing Committee adopted the resolution shown immediately below,
which resolution is now, and at all times since its date of adoption, has been in full force and
effect:
RESOLVED, that pursuant to the provisions of the Amended and Restated Certificate of
Incorporation of the Corporation (as such may be amended, modified or restated from time to time,
the Amended and Restated Certificate of Incorporation) (which authorizes 5,000,000 shares of
Preferred Stock, par value $0.001 per share (the Preferred Stock)), and the authority vested in
the Board of Directors, a series of Preferred Stock be, and it hereby is, created, and that the
designation and number of shares of such series, and the voting and other powers, preferences and
relative, participating, optional or other rights, and the qualifications, limitations and
restrictions thereof are as set forth in the Amended and Restated Certificate of Incorporation and
this Certificate of Designation, as it may be amended from time to time (the Certificate of
Designations) as follows:
Part 1. Designation and Number of Shares. Pursuant to the Amended and Restated Certificate
of Incorporation, there is hereby created out of the authorized and unissued shares of Preferred
Stock of the Corporation a series of Preferred Stock consisting of [_________] shares (or up to
[________] shares of Preferred Stock if the underwriters exercise in full their over-allotment
option pursuant to the Underwriting Agreement (as such term is defined herein) to purchase
additional shares) designated as the [____]% Series A Mandatory Convertible Preferred Stock (the
Mandatory Convertible Preferred Stock). Such number of shares may be decreased by resolution of
the Board of Directors, subject to the terms and conditions hereof; provided that no decrease shall
reduce the number of shares of the Mandatory Convertible Preferred Stock to a number less than the
number of shares then outstanding.
Part 2. Standard Provisions. The Standard Provisions contained in Annex A attached hereto
are incorporated herein by reference in their entirety and shall be deemed to be a part of this
Certificate of Designations to the same extent as if such provisions had been set forth in full
herein.
1
IN WITNESS WHEREOF, the Corporation has caused this Certificate of Designations to be signed
by John F. Ashburn, Jr., its Executive Vice President and General Counsel, this [_th] day of
February, 2011.
MOLYCORP, INC. |
||||
By: | ||||
Name: | John F. Ashburn, Jr. | |||
Title: | Executive Vice President and General Counsel |
|||
Signature Page to Certificate of Designations of Mandatory Convertible Preferred
Stock
Stock
2
ANNEX A
STANDARD PROVISIONS
SECTION 1. General Matters; Ranking. Each share of the Mandatory Convertible
Preferred Stock shall be identical in all respects to every other share of the Mandatory
Convertible Preferred Stock. The Mandatory Convertible Preferred Stock, with respect to dividend
rights and rights upon the liquidation, winding-up or dissolution of the Corporation, shall rank
(i) senior to all Junior Stock, (ii) on parity with all Parity Stock and (iii) junior to all Senior
Stock and the Corporations existing and future indebtedness.
SECTION 2. Standard Definitions. As used herein with respect to the Mandatory
Convertible Preferred Stock:
Accumulated Dividend Amount means, with respect to any Fundamental Change Conversion, the
aggregate amount of accumulated and unpaid dividends, if any, for Dividend Periods prior to the
Effective Date for the relevant Fundamental Change, including for the partial Dividend Period, if
any, from, and including, the Dividend Payment Date immediately preceding such Effective Date to,
but excluding, such Effective Date, subject to the proviso in Section 9(a).
Additional Fundamental Change Amount shall have the meaning set forth in Section 9(d)(iv).
ADRs shall have the meaning set forth in Section 13(e).
Agent Members shall have the meaning set forth in Section 21.
Amended and Restated Certificate of Incorporation shall have the meaning set forth in the
recitals.
Applicable Market Value means the Average VWAP per share of Common Stock over the 20
consecutive Trading Day period ending on, and including, the third Trading Day immediately
preceding the Mandatory Conversion Date.
Average VWAP per share over a certain period means the average of the VWAP per share for
each Trading Day in such period.
Board of Directors shall have the meaning set forth in the recitals.
Business Day means any day other than a Saturday or Sunday or any other day on which
commercial banks in New York City are authorized or required by law or executive order to close.
Bylaws means the Bylaws of the Corporation, as they may be amended or restated from time to
time.
Certificate of Designations shall have the meaning set forth in the recitals.
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Clause I Distribution shall have the meaning set forth in Section 13(a)(iv).
Clause II Distribution shall have the meaning set forth in Section 13(a)(iv).
Clause IV Distribution shall have the meaning set forth in Section 13(a)(iv).
Common Stock means the common stock, par value $0.001 per share, of the Corporation.
Conversion and Dividend Disbursing Agent means Computershare Trust Company, N.A., the
Corporations duly appointed conversion and dividend disbursing agent for the Mandatory Convertible
Preferred Stock, and any successor appointed under Section 14.
Conversion Date shall have the meaning set forth in Section 3(a).
Corporation shall have the meaning set forth in the recitals.
Current Market Price per share of Common Stock (or, in the case of Section 13(a)(iv), per
share of Common Stock, the Corporations capital stock or equity interest, as applicable) on any
date means for the purposes of determining an adjustment to the Fixed Conversion Rates:
(i) for purposes of any adjustment pursuant to Section 13(a)(ii), Section 13(a)(iv)
(in the event of an adjustment not relating to a Spin-Off), or Section 13(a)(v), the
Average VWAP per share of Common Stock over the five consecutive Trading Day period ending
on the Trading Day immediately preceding the Ex-Date with respect to the issuance or
distribution requiring such computation;
(ii) for purposes of any adjustment pursuant to Section 13(a)(iv) relating to a
Spin-Off, the Average VWAP per share of Common Stock, the Corporations capital stock or
equity interests, as applicable, over the first ten consecutive Trading Days commencing on
and including the fifth Trading Day immediately following the effective date of such
distribution; and
(iii) for purposes of any adjustment pursuant to Section 13(a)(vi), the Average VWAP
per share of Common Stock over the five consecutive Trading Day period ending on the seventh Trading Day after the Expiration
Date of the relevant tender offer or exchange offer.
Depositary means DTC or its nominee or any successor appointed by the Corporation.
Dividend Payment Date means [February _], [May _], [August _] and [November _] of each year
commencing on [May _], 2011 to and including the Mandatory Conversion Date.
Dividend Period means the period from, and including, a Dividend Payment Date to, but
excluding, the next Dividend Payment Date, except that the initial Dividend Period shall
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commence on, and include, the Initial Issue Date and shall end on, and exclude, the [May _], 2011 Dividend
Payment Date and except as otherwise provided in Section 9.
Dividend Rate shall have the meaning set forth in Section 3(a).
DTC means The Depository Trust Corporation.
Early Conversion shall have the meaning set forth in Section 8(a).
Early Conversion Additional Conversion Amount shall have the meaning set forth in Section
8(b).
Early Conversion Average Price shall have the meaning set forth in Section 8(b).
Early Conversion Date shall have the meaning set forth in Section 10(b).
Effective Date shall have the meaning set forth in Section 9(a).
Exchange Act shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder.
Exchange Property shall have the meaning set forth in Section 13(e).
Ex-Date, when used with respect to any issuance or distribution, means the first date on
which shares of Common Stock trade without the right to receive such issuance or distribution.
Expiration Date shall have the meaning set forth in Section 13(a)(vi).
Fair Market Value means the fair market value as determined in good faith by the Board of
Directors (or an authorized committee thereof), whose determination shall be conclusive and set
forth in a resolution of the Board of Directors (or such authorized committee).
Five-Day Average Price shall have the meaning set forth in Section 3(c).
Fixed Conversion Rates means the Maximum Conversion Rate and the Minimum Conversion Rate.
Floor Price shall have the meaning set forth in Section 3(e).
A Fundamental Change shall be deemed to have occurred, at any time after the Initial Issue
Date, upon: (i) the consummation of any transaction or event (whether by means of an exchange
offer, liquidation, tender offer, consolidation, merger, combination, recapitalization or
otherwise) in connection with which 90% or more of the Common Stock is exchanged for, converted
into, acquired for or constitutes solely the right to receive, consideration 10% or more of which
is not common stock that is listed on, or immediately after the transaction or event will be listed
on, the New York Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market; (ii)
(a) any person or group (as such terms are used for purposes
5
of Sections 13(d) and 14(d) of the
Exchange Act, whether or not applicable), other than the TNA Group, the Resource Group, the Pegasus
Group, the Corporation, any of the Corporations majority-owned subsidiaries or any of the
Corporations or the Corporations majority-owned subsidiaries employee benefit plans, becoming
the beneficial owner, directly or indirectly, of more than 50% of the total voting power in the
aggregate of all classes of capital stock then outstanding entitled to vote generally in elections
of the Corporations directors, or (b) the TNA Group, the Resource Group and the Pegasus Group, in
the aggregate, becoming the beneficial owner, directly or indirectly, of more than 65% of the
total voting power in the aggregate of all classes of capital stock then outstanding entitled to
vote generally in the elections of the Corporations directors; or (iii) the Common Stock (or any
other security into which the Mandatory Convertible Preferred Stock becomes convertible in
connection with a Reorganization Event) ceases to be listed or quoted on the New York Stock
Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market.
Fundamental Change Conversion shall have the meaning set forth in Section 9(a).
Fundamental Change Conversion Date shall have the meaning set forth in Section 10(c).
Fundamental Change Conversion Period shall have the meaning set forth in Section 9(a).
Fundamental Change Conversion Rate means, for any Fundamental Change Conversion, the
conversion rate set forth in the table below for the Effective Date and the Stock Price applicable
to such Fundamental Change:
Stock Price on Effective Date | ||||||||||||||||||||||||||||||
Effective Date | ||||||||||||||||||||||||||||||
[_____], 2011
|
||||||||||||||||||||||||||||||
[_____], 2012 |
||||||||||||||||||||||||||||||
[_____], 2013 |
||||||||||||||||||||||||||||||
[_____], 2014 |
If the Stock Price falls between two Stock Prices set forth in the table above, or if the
Effective Date falls between two Effective Dates set forth in the table above, the Fundamental
Change Conversion Rate shall be determined by straight-line interpolation between the Fundamental
Change Conversion Rates set forth for the higher and lower Stock Prices and the earlier and later
Effective Dates based on a 365-day year, as applicable.
If the Stock Price is in excess of $[ ] per share (subject to adjustment in the same manner
as adjustments are made to the Stock Price in accordance with the provisions of Section
13(c)(iv)), then the Fundamental Change Conversion Rate shall be the Minimum Conversion Rate. If
the Stock Price is less than $[ ] per share (subject to adjustment in the same manner as
adjustments are made to the Stock Price in accordance with the provisions of Section 13(c)(iv)),
then the Fundamental Change Conversion Rate shall be the Maximum Conversion Rate.
The Stock Prices in the column headings in the table above are subject to adjustment in
accordance with the provisions of Section 13(c)(iv). The Fundamental Change Conversion Rates
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set forth in the table above are each subject to adjustment in the same manner as each Fixed Conversion
Rate as set forth in Section 13.
Fundamental Change Dividend Make-whole Amount shall have the meaning set forth in Section
9(a).
Fundamental Change Notice shall have the meaning set forth in Section 9(b).
Global Preferred Shares shall have the meaning set forth in Section 21.
Holder means each person in whose name shares of the Mandatory Convertible Preferred Stock
are registered, who shall be treated by the Corporation and the Registrar as the absolute owner of
those shares of Mandatory Convertible Preferred Stock for the purpose of making payment and
settling conversions and for all other purposes.
Initial Issue Date shall mean [_______], 2011, the first original issue date of the
Mandatory Convertible Preferred Stock.
Initial Price shall have the meaning set forth in Section 7(b)(ii).
Junior Stock means (i) the Common Stock and (ii) each other class of capital stock or series
of Preferred Stock established after the Initial Issue Date, the terms of which do not expressly
provide that such class or series ranks senior to or on a parity with the Mandatory Convertible
Preferred Stock as to dividend rights and rights upon the Corporations liquidation, winding-up or
dissolution.
Liquidation Dividend Amount shall have the meaning set forth in Section 4(a).
Liquidation Preference means, as to the Mandatory Convertible Preferred Stock, $100 per
share.
Mandatory Conversion shall have the meaning set forth in Section 7(a).
Mandatory Conversion Additional Conversion Amount shall have the meaning set forth in
Section 7(c).
Mandatory Conversion Date means [__], 2014.
Mandatory Conversion Rate shall have the meaning set forth in Section 7(b).
Mandatory Convertible Preferred Stock shall have the meaning set forth in Part 1 of this
Certificate of Designations.
Maximum Conversion Rate shall have the meaning set forth in Section 7(b)(iii).
Minimum Conversion Rate shall have the meaning set forth in Section 7(b)(i).
Nonpayment shall have the meaning set forth in Section 6(b)(i).
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Nonpayment Remedy shall have the meaning set forth in Section 6(b)(iii).
Officer means the Chief Executive Officer, the Chief Financial Officer, the President, any
Executive Vice President, any Senior Vice President, any Vice President, the Treasurer or the
Secretary of the Corporation.
Officers Certificate means a certificate of the Corporation, signed by any duly authorized
Officer of the Corporation.
Parity Stock means any class of capital stock or series of Preferred Stock established after
the Initial Issue Date, the terms of which expressly provide that such class or series shall rank
on a parity with the Mandatory Convertible Preferred Stock as to dividend rights and rights upon
the Corporations liquidation, winding-up or dissolution.
Pegasus Entities means, collectively, PP IV Mountain Pass II, LLC, PP IV MP AIV 1, LLC, PP
IV MP AIV 2, LLC and PP IV MP AIV 3, LLC.
Pegasus Group means, collectively, the Pegasus Entities, any affiliate of a Pegasus Entity
to which such Pegasus Entity transfers shares of Common Stock and any group with which any of the foregoing files a report on Schedule 13D from time
to time.
Person means any individual, partnership, firm, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, governmental
authority or other entity of whatever nature.
Preferred Stock shall have the meaning set forth in the recitals.
Preferred Stock Directors shall have the meaning set forth in Section 6(b)(i).
Pricing Committee shall have the meaning set forth in the recitals.
Record Date means, with respect to any Dividend Payment Date, the [February _], [May _],
[August _] or [November _] immediately preceding the applicable [February _], [May _], [August _]
or [November _] Dividend Payment Date, respectively. These Record Dates shall apply regardless of
whether a particular Record Date is a Business Day.
Record Holder means, with respect to any Dividend Payment Date, a Holder of record of the
Mandatory Convertible Preferred Stock as such Holder appears on the stock register of the
Corporation at 5:00 p.m., New York City time, on the related Record Date.
Registrar shall initially mean Computershare Trust Company, N.A., the Corporations duly
appointed registrar for the Mandatory Convertible Preferred Stock and any successor appointed under
Section 14.
Reorganization Event shall have the meaning set forth in Section 13(e).
8
Resource Entities means, collectively, Resource Capital Fund IV L.P. and Resource Capital
Fund V L.P.
Resource Group means, collectively, the Resource Entities, any affiliate of a Resource
Entity to which such Resource Entity transfers shares of Common Stock and any group with which any
of the foregoing files a report on Schedule 13D from time to time.
Scheduled Trading Day means any day that is scheduled to be a Trading Day.
Senior Stock means each class of capital stock or series of Preferred Stock established
after the Initial Issue Date, the terms of which expressly provide that such class or series shall
rank senior to the Mandatory Convertible Preferred Stock as to dividend rights and rights upon the
Corporations liquidation, winding-up or dissolution.
Shelf Registration Statement shall mean a shelf registration statement filed with the
Securities and Exchange Commission in connection with the issuance of or resales of shares of
Common Stock issued as payment of a dividend, including dividends paid in connection with a
conversion.
Spin-Off means a dividend or other distribution by the Corporation to all holders of Common
Stock consisting of capital stock of, or similar equity interests in, or relating to a subsidiary
or other business unit of the Corporation.
Stock Price means, for any Fundamental Change, (i) if the holders of Common Stock receive
only cash in such Fundamental Change, the amount of cash paid in such Fundamental Change per share
of Common Stock, and (ii) if the holders of Common Stock receive any property other than cash in
such Fundamental Change, the Average VWAP per share of Common Stock over the five consecutive
Trading Day period ending on, and including, the Trading Day preceding the Effective Date.
Threshold Appreciation Price shall have the meaning set forth in Section 7(b)(i).
TNA Group means, collectively, TNA Moly Group LLC, any affiliate of TNA Moly Group LLC to
which TNA Moly Group LLC transfers shares of Common Stock and any group with which either of the
foregoing files a report on Schedule 13D from time to time.
Trading Day means a day on which shares of Common Stock:
(a) are not suspended from trading, and on which trading in Common Stock is not limited, on
any national or regional securities exchange or association or over-the-counter market during any
period or periods aggregating one half-hour or longer; and
(b) have traded at least once on the national or regional securities exchange or association
or over-the-counter market that is the primary market for the trading of Common Stock;
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provided that if the Common Stock is not traded on any such exchange, association or market,
Trading Day means any Business Day.
Transfer Agent shall initially mean Computershare Trust Company, N.A., the Corporations
duly appointed transfer agent for the Mandatory Convertible Preferred Stock and any successor
appointed under Section 14.
Trigger Event shall have the meaning set forth in Section 13(a)(iv).
Underwriting Agreement means the Underwriting Agreement relating to the Mandatory
Convertible Preferred Stock, dated [________], 2011, between the Corporation and the underwriters
named therein.
Unit of Exchange Property shall have the meaning set forth in Section 13(e).
Voting Preferred Stock means any class or series of Preferred Stock, other than the
Mandatory Convertible Preferred Stock, ranking equally with the Mandatory Convertible Preferred
Stock either as to dividends or the distribution of assets upon liquidation, dissolution or winding
up and upon which like voting rights have been conferred and are exercisable.
VWAP per share of Common Stock on any Trading Day means the per share volume-weighted
average price as displayed on Bloomberg page MCP <Equity> AQR (or its equivalent successor
if such page is not available) in respect of the period from 9:30 a.m. to 4:00 p.m., New York City
time, on such Trading Day; or, if such price is not available, VWAP means the market value per
share of Common Stock on such Trading Day as determined, using a volume-weighted average method, by
a nationally recognized independent investment banking firm retained by the Corporation for this
purpose.
SECTION 3. Dividends. (a) Rate. Subject to the rights of holders of any class of
capital stock ranking senior to the Mandatory Convertible Preferred Stock with respect to
dividends, Holders shall be entitled to receive, when, as and if declared by the Board of Directors
(or an authorized committee thereof) out of funds of the Corporation legally available therefor,
cumulative dividends at the rate per annum of [ ]% on the Liquidation Preference per share
of Mandatory Convertible Preferred Stock (the Dividend Rate) (equivalent to $[ ] per
annum per share), payable in cash, by delivery of shares of Common Stock or through any combination
of cash and shares of Common Stock, as determined by the Corporation in its sole discretion
(subject to the limitations described below). Declared dividends on the Mandatory Convertible
Preferred Stock shall be payable quarterly on each Dividend Payment Date at such annual rate, and
dividends shall accumulate from the most recent date as to which dividends shall have been paid or,
if no dividends have been paid, from the Initial Issue Date, whether or not in any Dividend Period
or Dividend Periods there have been funds legally available for the payment of such dividends.
Declared dividends shall be payable on the relevant Dividend Payment Date to Record Holders on the
immediately preceding Record Date, whether or not the shares held by such Record Holders on such
Record Date are converted after such Record Date and on or prior to the immediately succeeding
Dividend Payment Date. If a Dividend Payment Date is not a Business Day, payment shall be made on
the next succeeding Business Day, without any interest or other payment in lieu of interest
accruing with respect to this delay.
10
The amount of dividends payable on each share of Mandatory Convertible Preferred Stock
for each full Dividend Period (after the initial Dividend Period) shall be computed by dividing the
Dividend Rate by four. Dividends payable on the Mandatory Convertible Preferred Stock for the
initial Dividend Period and any partial Dividend Period shall be computed based upon the actual
number of days elapsed during such period over a 360-day year (consisting of twelve 30-day months).
Accumulated dividends shall not bear interest if they are paid subsequent to the applicable
Dividend Payment Date.
No dividend shall be declared or paid upon, or any sum or number of shares of Common Stock set
apart for the payment of dividends upon, any outstanding share of Mandatory Convertible Preferred
Stock with respect to any Dividend Period unless all dividends for all preceding Dividend Periods
have been declared and paid upon, or a sufficient sum or number of shares of Common Stock have been
set apart for the payment of such dividends upon, all outstanding shares of Mandatory Convertible
Preferred Stock.
Holders shall not be entitled to any dividends on the Mandatory Convertible Preferred Stock,
whether payable in cash, property or shares of Common Stock, in excess of full cumulative
dividends.
Except as described in this Section 3(a), dividends on any share of Mandatory Convertible
Preferred Stock converted to Common Stock shall cease to accumulate on the Mandatory Conversion
Date, the Fundamental Change Conversion Date or the Early Conversion Date (each, a Conversion
Date), as applicable.
(b) Priority of Dividends. So long as any share of the Mandatory Convertible Preferred Stock
remains outstanding, no dividend or distribution shall be declared or paid on Common Stock or any
other shares of Junior Stock, and no Common Stock or other Junior Stock or Parity Stock shall be,
directly or indirectly, purchased, redeemed or otherwise acquired for consideration by the
Corporation or any of its subsidiaries unless all accumulated and unpaid dividends for all
preceding Dividend Periods have been declared and paid upon, or a sufficient sum or number of
shares of Common Stock have been set apart for the payment of such dividends upon, all outstanding
shares of Mandatory Convertible Preferred Stock. The foregoing limitation shall not apply to (i) a
dividend payable on any Common Stock or other Junior Stock in shares of any Common Stock or other
Junior Stock, or to the acquisition of shares of any Common Stock or other Junior Stock in exchange
for, or through application of the proceeds of the sale of, shares of any Common Stock or other
Junior Stock; (ii) purchases of fractional interests in shares of any Common Stock or other Junior
Stock pursuant to the conversion or exchange provisions of such shares of other Junior Stock or any
securities exchangeable for or convertible into such shares of Common Stock or other Junior Stock;
(iii) redemptions, purchases or other acquisitions of shares of Common Stock or other Junior Stock
in connection with the administration of any employee benefit plan in the ordinary course of
business, including, without limitation, the forfeiture of unvested shares of restricted stock or
share withholdings upon exercise, delivery or vesting of equity awards granted to officers,
directors and employees; (iv) any dividends or distributions of rights or Common Stock or other
Junior Stock in connection with a stockholders rights plan or any redemption or repurchase of
rights pursuant to any stockholders rights plan; (v) the acquisition by the Corporation or any of
its
11
subsidiaries of record ownership in Common Stock or other Junior Stock or Parity Stock for the
beneficial ownership of any other persons (other than the Corporation or any of its subsidiaries),
including as trustees or custodians; and (vi) the exchange or conversion of Junior Stock for or
into other Junior Stock or of Parity Stock for or into other Parity Stock (with the same or lesser
aggregate liquidation amount) or Junior Stock.
When dividends on Shares of Mandatory Convertible Preferred Stock have not been paid in full
on any Dividend Payment Date or declared and a sum or number of shares of Common Stock sufficient
for payment thereof set aside for the benefit of the Holders thereof on the applicable Record Date,
no dividends may be declared or paid on any Parity Stock unless dividends are declared on the
Mandatory Convertible Preferred Stock such that the respective amounts of such dividends declared
on the Mandatory Convertible Preferred Stock and each such other class or series of Parity Stock
shall bear the same ratio to each other as all accumulated and unpaid dividends per share on the
shares of the Mandatory Convertible Preferred Stock and such class or series of Parity Stock
(subject to their having been declared by the Board of Directors (or an authorized committee
thereof) out of legally available funds) bear to each other; provided that any unpaid dividends
will continue to accumulate.
Subject to the foregoing, and not otherwise, such dividends (payable in cash, securities or
other property) as may be determined by the Board of Directors (or an authorized committee thereof)
may be declared and paid on any securities, including Common Stock and other Junior Stock, from
time to time out of any funds legally available for such payment, and Holders shall not be entitled
to participate in any such dividends.
(c) Method of Payment of Dividends. (i) Subject to the limitations described below, any
declared dividend (or any portion of any declared dividend) on the Mandatory Convertible Preferred
Stock, whether or not for a current Dividend Period or any prior Dividend Period, may be paid by
the Corporation, as determined in the Corporations sole discretion:
(A) in cash;
(B) by delivery of shares of Common Stock; or
(C) through any combination of cash and shares of Common Stock.
(ii) Each payment of a declared dividend on the Mandatory Convertible Preferred Stock
shall be made in cash, except to the extent the Corporation timely elects to make all or any
portion of such payment in shares of Common Stock. The Corporation shall give notice to
Holders of any such election and the portions of such payment that will be made in cash and
in Common Stock no later than 10 Scheduled Trading Days prior to the Dividend Payment Date
for such dividend.
(iii) Any shares of Common Stock issued in payment or partial payment of a declared
dividend shall be valued for such purpose at the Average VWAP per share of Common Stock over
the five consecutive Trading Day period ending on the second Trading Day immediately
preceding the applicable Dividend Payment Date (the Five-Day Average Price), multiplied by
97%.
12
(d) No fractional shares of Common Stock shall be delivered by the Corporation to Holders in
payment or partial payment of a dividend. A cash adjustment shall be paid by the Corporation to
each Holder that would otherwise be entitled to receive a fraction of a share of Common Stock based
on the Average VWAP per share of the Common Stock over the five consecutive Trading Day period
ending on the second Trading Day immediately preceding the relevant Dividend Payment Date.
(e) Notwithstanding the foregoing, in no event shall the number of shares of Common Stock to
be delivered in connection with any declared dividend exceed a number equal to the total dividend
payment divided by $[______], subject to adjustment in a manner inversely proportional to any
anti-dilution adjustment to each Fixed Conversion Rate as set forth in Section 13 (such dollar
amount, as adjusted from time to time, the Floor Price). To the extent that the amount of any
declared dividend exceeds the product of the number of shares of Common Stock delivered in
connection with such declared dividend and 97% of the Five-Day Average Price, the Corporation
shall, if it is legally able to do so, notwithstanding any notice by the Corporation to the
contrary, pay such excess amount in cash.
(f) To the extent that the Corporation, in its reasonable judgment, determines that a Shelf
Registration Statement is required in connection with the issuance of, or for resales of, Common
Stock issued as payment of a dividend, including dividends paid in connection with a conversion,
the Corporation shall, to the extent such a Shelf Registration Statement is not currently filed and
effective, use its reasonable best efforts to file and maintain the effectiveness of such a Shelf
Registration Statement until the earlier of such time as all such shares of Common Stock have been
resold thereunder and such time as all such shares are freely tradable without registration. To
the extent applicable, the Corporation shall also use its reasonable best efforts to have such
shares of Common Stock qualified or registered under applicable state securities laws, if required,
and approved for listing on the New York Stock Exchange (or if the Common Stock is not then listed
on the New York Stock Exchange, on the principal other U.S. national or regional securities
exchange on which the Common Stock is then listed).
SECTION 4. Liquidation, Dissolution or Winding Up. (a) In the event of any
liquidation, winding-up or dissolution of the Corporation, whether voluntary or involuntary, each
Holder shall be entitled to receive the Liquidation Preference per share of Mandatory Convertible
Preferred Stock, plus an amount (the Liquidation Dividend Amount) equal to accumulated and unpaid
dividends on such shares to (but excluding) the date fixed for liquidation, winding-up or
dissolution to be paid out of the assets of the Corporation available for distribution to its
stockholders, after satisfaction of liabilities owed to the Corporations creditors and holders of
any Senior Stock and before any payment or distribution is made to holders of any Junior Stock,
including, without limitation, Common Stock.
(b) Neither the sale (for cash, shares of stock, securities or other consideration) of all or
substantially all of the assets or business of the Corporation (other than in connection with the
liquidation, winding-up or dissolution of the Corporation), nor the merger or consolidation of the
Corporation into or with any other Person, shall be deemed to be a liquidation, winding-up or
dissolution, voluntary or involuntary, of the Corporation for the purposes of this Section 4.
13
(c) If, upon the voluntary or involuntary liquidation, winding-up or dissolution of the
Corporation, the amounts payable with respect to (1) the Liquidation Preference plus the
Liquidation Dividend Amount of the Mandatory Convertible Preferred Stock and (2) the liquidation
preference of, and the amount of accumulated and unpaid dividends to, but excluding, the date fixed
for liquidation, dissolution or winding up, on, all Parity Stock are not paid in full, the Holders
and all holders of any Parity Stock shall share equally and ratably in any distribution of the
Corporations assets in proportion to the respective liquidation preferences and amounts equal to
the accumulated and unpaid dividends to which they are entitled.
(d) After the payment to any Holder of the full amount of the Liquidation Preference and the
Liquidation Dividend Amount for each of such Holders shares of Mandatory Convertible Preferred
Stock, such Holder as such shall have no right or claim to any of the remaining assets of the
Corporation.
SECTION 5. No Redemption; No Sinking Fund. The Mandatory Convertible Preferred
Stock shall not be subject to any redemption, sinking fund or other similar provisions.
SECTION 6. Voting Rights.
(a) General. Holders shall not have any voting rights except as set forth in this Section 6
or as otherwise from time to time required by Delaware law.
(b) Right to Elect Two Directors Upon Nonpayment. (i) Whenever dividends on any shares of
Mandatory Convertible Preferred Stock have not been declared and paid for the equivalent of six or
more Dividend Periods, whether or not for consecutive Dividend Periods (a Nonpayment), the
Holders, voting together as a single class with holders of any and all other series of Voting
Preferred Stock then outstanding, shall be entitled at the Corporations next special or annual
meeting of stockholders to vote for the election of a total of two additional members of the Board
of Directors (the Preferred Stock Directors); provided that the election of any such directors
will not cause the Corporation to violate the corporate governance requirements of the New York
Stock Exchange (or any other exchange or automated quotation system on which the Corporations
securities may be listed or quoted) that requires listed or quoted companies to have a majority of
independent directors; and provided further that the Board of Directors shall, at no time, include
more than two Preferred Stock Directors. In the event of a Nonpayment, the number of directors
then constituting the Board of Directors shall be increased by two, and the new directors shall be
elected at a special meeting of stockholders called at the request of the holders of record of at
least 20% of the shares of Mandatory Convertible Preferred Stock or of any other series of Voting
Preferred Stock (provided that such request is received at least 90 calendar days before the date
fixed for the next annual or special meeting of the stockholders, failing which such election shall
be held at such next annual or special meeting of stockholders), and at each subsequent annual
meeting, so long as the Holders continue to have such voting rights. Whether a plurality, majority
or other portion of the Mandatory Convertible Preferred Stock and any other Voting Preferred Stock
have been voted in favor of any matter shall be determined by reference to the respective
liquidation preference amounts of the Mandatory Convertible Preferred Stock and such other Voting
Preferred Stock voted.
14
(ii) Any request to call a special meeting for the initial election of the Preferred
Stock Directors after a Nonpayment shall be made by written notice, signed by the requisite
holders of Mandatory Convertible Preferred Stock or Voting Preferred Stock then outstanding,
and delivered to the Corporation in such manner as provided for in Section 16 below, or as
may otherwise be required by law.
(iii) If and when all accumulated and unpaid dividends on the Mandatory Convertible
Preferred Stock have been paid in full, or declared and a sum sufficient for such payment
shall have been set aside (a Nonpayment Remedy), the Holders shall immediately and,
without any further action by the Corporation, be divested of the foregoing voting rights,
subject to the revesting of such rights in the event of each subsequent Nonpayment. If such
voting rights for the Holders and all other holders of Voting Preferred Stock shall have
terminated, the term of office of each Preferred Stock Director so elected shall terminate
at such time and the number of directors on the Board of Directors shall automatically
decrease by two.
(iv) Any Preferred Stock Director may be removed at any time without cause by the
holders of record of a majority of the outstanding shares of the Mandatory Convertible
Preferred Stock and Voting Preferred Stock (voting together as a single class), when they
have the voting rights described above. In the event that a Nonpayment shall have occurred
and there has not been a Nonpayment Remedy, any vacancy in the office of a Preferred Stock
Director (other than prior to the initial election of Preferred Stock Directors after a
Nonpayment) may be filled by the written consent of the Preferred Stock Director remaining
in office or, if none remains in office, by a vote of the holders of record of a majority of
the outstanding shares of the Mandatory Convertible Preferred Stock and any other shares of
Voting Preferred Stock then outstanding (voting together as a single class) when they have
the voting rights described above; provided that the filling of each vacancy will not cause
the Corporation to violate the corporate governance requirements of the New York Stock
Exchange (or any other exchange or automated quotation system on which the Corporations
securities may be listed or quoted) that requires listed or quoted companies to have a
majority of independent directors. Any such vote of stockholders to remove, or to fill a
vacancy in the office of, a Preferred Stock Director may be taken only at a special meeting
of such stockholders, called as provided above for an initial election of Preferred Stock
Directors after a Nonpayment (provided that such request is received at least 90 calendar
days before the date fixed for the next annual or special meeting of the stockholders,
failing which election shall be held at such next annual or special meeting of
stockholders). The Preferred Stock Directors shall each be entitled to one vote per
director on any matter that shall come before the Board of Directors for a vote. Each
Preferred Stock Director elected at any special meeting of stockholders or by written
consent of the other Preferred Stock Director shall hold office until the next annual
meeting of the stockholders if such office shall not have previously terminated and such
Preferred Stock Director shall not have been removed from such office, in each case as above
provided.
(c) Other Voting Rights. So long as any shares of Mandatory Convertible Preferred Stock are
outstanding, in addition to any other vote or consent of stockholders required by law or
15
by the
Amended and Restated Certificate of Incorporation, the affirmative vote or consent of the
holders of at least two-thirds of the shares of Mandatory Convertible Preferred Stock and all
other series of Voting Preferred Stock (subject to the last paragraph of this Section 6(c)) at the
time outstanding and entitled to vote thereon, voting together as a single class, given in person
or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose,
shall be necessary for effecting or validating:
(i) Authorization of Senior Stock. Any amendment or alteration of the Amended and
Restated Certificate of Incorporation or this Certificate of Designations so as to authorize
or create, or increase the authorized amount of, any specific class or series of stock of
the Corporation ranking senior to the Mandatory Convertible Preferred Stock with respect to
either or both the payment of dividends or the distribution of the Corporations assets on
any liquidation, dissolution or winding up of the Corporation;
(ii) Amendment of Mandatory Convertible Preferred Stock. Any amendment, alteration or
repeal of any provision of the Amended and Restated Certificate of Incorporation or this
Certificate of Designations so as to adversely affect the special rights, preferences,
privileges or voting powers of the Mandatory Convertible Preferred Stock; or
(iii) Share Exchanges, Reclassifications, Mergers and Consolidations. Any consummation
of a binding share exchange or reclassification involving the Mandatory Convertible
Preferred Stock, or of a merger or consolidation of the Corporation with or into another
corporation or other entity, unless in each case (x) the shares of Mandatory Convertible
Preferred Stock remain outstanding and are not amended in any respect or, in the case of any
such merger or consolidation with respect to which the Corporation is not the surviving or
resulting entity, are converted into or exchanged for preference securities of the surviving
or resulting entity or its ultimate parent, and (y) such shares of Mandatory Convertible
Preferred Stock remaining outstanding or such preference securities, as the case may be,
have such rights, preferences, privileges and voting powers, and limitations and
restrictions thereof, taken as a whole, as are not materially less favorable to the holders
thereof than the rights, preferences, privileges and voting powers, and limitations and
restrictions thereof, of the Mandatory Convertible Preferred Stock immediately prior to such
consummation, taken as a whole;
provided, however, that for all purposes of this Section 6(c), (1) any increase in the amount of
the Corporations authorized but unissued shares of Preferred Stock, (2) any increase in the amount
of the Corporations authorized or issued shares of Mandatory Convertible Preferred Stock and (3)
the creation and issuance, or an increase in the authorized or issued amount, of any other series
of Preferred Stock ranking equally with or junior to the Mandatory Convertible Preferred Stock with
respect to the payment of dividends (whether such dividends are cumulative or non-cumulative) and
the distribution of assets upon the liquidation, dissolution or winding up of the Corporation,
shall be deemed not to adversely affect the special rights, preferences, privileges or voting
powers, and the limitations and restrictions thereof, of the Mandatory Convertible Preferred Stock,
and shall not require the affirmative vote or consent of Holders.
16
If any amendment, alteration, repeal, share exchange, reclassification, merger or
consolidation specified in this Section 6(c) would adversely affect one or more but not all series
of Voting Preferred Stock (which term shall include the Mandatory Convertible Preferred Stock
for the purpose of this paragraph), then only the series of Voting Preferred Stock adversely
affected and entitled to vote shall vote as a class in lieu of all other series of Voting Preferred
Stock.
(d) Change for Clarification. Without the consent of the Holders, so long as such action does
not adversely affect the special rights, preferences, privileges or voting powers, and limitations
and restrictions thereof, of the Mandatory Convertible Preferred Stock, the Corporation may amend,
alter, supplement or repeal any terms of the Mandatory Convertible Preferred Stock:
(i) to cure any ambiguity or mistake, or to correct or supplement any provision
contained in this Certificate of Designations that may be defective or inconsistent with any
other provision contained in this Certificate of Designations; or
(ii) to make any provision with respect to matters or questions relating to the
Mandatory Convertible Preferred Stock that is not inconsistent with the provisions of this
Certificate of Designations.
(e) Procedures for Voting and Consents. The rules and procedures for calling and conducting
any meeting of the Holders (including, without limitation, the fixing of a record date in
connection therewith), the solicitation and use of proxies at such a meeting, the obtaining of
written consents and any other procedural aspect or matter with regard to such a meeting or such
consents shall be governed by any rules the Board of Directors, in its discretion, may adopt from
time to time, which rules and procedures shall conform to the requirements of the Amended and
Restated Certificate of Incorporation, the Bylaws, applicable law and the rules of any national
securities exchange or other trading facility on which the Mandatory Convertible Preferred Stock is
listed or traded at the time.
SECTION 7. Mandatory Conversion on the Mandatory Conversion Date. (a) Each share
of Mandatory Convertible Preferred Stock shall automatically convert (unless previously converted
at the option of the Holder in accordance with Section 8 or pursuant to an exercise of a
Fundamental Change Conversion right pursuant to Section 9) on the Mandatory Conversion Date
(Mandatory Conversion), into a number of shares of Common Stock equal to the Mandatory Conversion
Rate.
(b) The Mandatory Conversion Rate shall, subject to adjustment in accordance with Section
7(c), be as follows:
(i) if the Applicable Market Value is greater than $[ ] (the Threshold
Appreciation Price), then the Mandatory Conversion Rate shall be equal to [ ]
shares of Common Stock per share of Mandatory Convertible Preferred Stock (the Minimum
Conversion Rate);
17
(ii) if the Applicable Market Value is less than or equal to the Threshold Appreciation
Price but equal to or greater than $[ ] (the Initial Price), then the Mandatory
Conversion Rate per share of Mandatory Convertible Preferred Stock shall be equal to the
Liquidation Preference divided by the Applicable Market Value; or
(iii) if the Applicable Market Value is less than the Initial Price, then the Mandatory
Conversion Rate shall be equal to [ ] shares of Common Stock per share of Mandatory
Convertible Preferred Stock (the Maximum Conversion Rate);
provided that the Fixed Conversion Rates, the Threshold Appreciation Price, the Initial Price and
the Applicable Market Value are each subject to adjustment in accordance with the provisions of
Section 13.
(c) If on or prior to the Record Date immediately preceding the Mandatory Conversion Date the
Corporation has not declared all or any portion of the accumulated and unpaid dividends on the
Mandatory Convertible Preferred Stock, the Mandatory Conversion Rate shall be adjusted so that
Holders receive an additional number of shares of Common Stock equal to the amount of accumulated
and unpaid dividends that have not been declared (Mandatory Conversion Additional Conversion
Amount) divided by the greater of the Floor Price and 97% of the Five-Day Average Price. To the
extent that the Mandatory Conversion Additional Conversion Amount exceeds the product of such
number of additional shares and 97% of the Five-Day Average Price, the Corporation shall, if the
Corporation is legally able to do so, declare and pay such excess amount in cash pro rata to the
Holders.
SECTION 8. Early Conversion at the Option of the Holder. (a) Other than during a
Fundamental Change Conversion Period, the Holders shall have the right to convert their shares of
Mandatory Convertible Preferred Stock, in whole or in part (but in no event less than one share of
Mandatory Convertible Preferred Stock), at any time prior to the Mandatory Conversion Date (Early
Conversion), into shares of Common Stock at the Minimum Conversion Rate, subject to adjustment as
described in Section 13 and to satisfaction of the conversion procedures set forth in Section 10.
(b) If as of any Early Conversion Date the Corporation has not declared all or any portion of
the accumulated and unpaid dividends for all full Dividend Periods ending on a Dividend Payment
Date prior to such Early Conversion Date, the Minimum Conversion Rate shall be adjusted, with
respect to the relevant Early Conversion, so that the converting Holder receives an additional
number of shares of Common Stock equal to the amount of accumulated and unpaid dividends that have
not been declared for such full Dividend Periods (the Early Conversion Additional Conversion
Amount), divided by the greater of the Floor Price and the Average VWAP per share of the Common
Stock over the 20 consecutive Trading Day period ending on, and including, the third Trading Day
immediately preceding the Early Conversion Date (such average being referred to as the Early
Conversion Average Price). For the avoidance of doubt, to the extent that the Early Conversion
Additional Conversion Amount exceeds the product of the number of additional shares and the Early
Conversion Average Price, the Company will not have any obligation to pay the shortfall in cash.
Except as described in the first sentence of this Section 8(b), upon any Early Conversion of any shares of
the Mandatory Convertible
18
Preferred Stock, the Corporation shall make no payment or allowance for
undeclared dividends on such shares of the Mandatory Convertible Preferred Stock, unless such Early
Conversion occurs after the Record Date for a declared dividend and on or prior to the immediately
succeeding Dividend Payment Date, in which case the Corporation shall pay such dividend on such
Dividend Payment Date to the Record Holder of the converted shares as of such Record Date, in
accordance with Section 3.
SECTION 9. Fundamental Change Conversion. (a) If a Fundamental Change occurs on or
prior to the Mandatory Conversion Date, the Holders shall have the right to (i) convert their
shares of Mandatory Convertible Preferred Stock, in whole or in part (but in no event less than one
share of Mandatory Convertible Preferred Stock) (any such conversion pursuant to this Section 9(a)
being a Fundamental Change Conversion) at any time during the period (the Fundamental Change
Conversion Period) that begins on the effective date of such Fundamental Change (the Effective
Date) and ends at 5:00 p.m., New York City time, on the date that is 20 calendar days after the
Effective Date (or, if earlier, the Mandatory Conversion Date) into a number of shares of Common
Stock equal to the Fundamental Change Conversion Rate per share of Mandatory Convertible Preferred
Stock, (ii) with respect to such converted shares, receive an amount equal to the present value,
calculated using a discount rate of [ ]% per annum, of all dividend payments on such
shares (excluding any Accumulated Dividend Amount) for all the remaining full Dividend Periods and
for the partial Dividend Period from and including such Effective Date to but excluding the next
Dividend Payment Date (the Fundamental Change Dividend Make-whole Amount); and (iii) with respect
to such converted shares, to the extent that, as of such Effective Date, there is any Accumulated
Dividend Amount, receive payment of the Accumulated Dividend Amount, in the case of clauses (ii)
and (iii), subject to the Corporations right to deliver shares of Common Stock in lieu of all or
part of such amounts as set forth in clause (d) below; provided that if such Effective Date or the
relevant Fundamental Change Conversion Date falls after the Record Date for a declared dividend and
prior to the next Dividend Payment Date, the Corporation shall pay such dividend on such Dividend
Payment Date to the Record Holders as of such Record Date, in accordance with Section 3, and such
dividend shall not be included in the Accumulated Dividend Amount, and the Fundamental Change
Dividend Make-whole Amount shall not include the present value of the payment of such dividend.
(b) On or before the twentieth calendar day prior to the anticipated Effective Date or, if
such prior notice is not practicable, no later than the actual Effective Date, a written notice
(the Fundamental Change Notice) shall be sent by or on behalf of the Corporation, by first-class
mail, postage prepaid, to the Holders. Such notice shall state:
(i) the event causing the Fundamental Change;
(ii) the anticipated Effective Date or actual Effective Date, as the case may be;
(iii) that Holders shall have the right to effect a Fundamental Change Conversion in
connection with such Fundamental Change during the Fundamental Change Conversion Period;
19
(iv) the Fundamental Change Conversion Period; and
(v) the instructions a Holder must follow to effect a Fundamental Change Conversion in
connection with such Fundamental Change.
If the Corporation notifies Holders of a Fundamental Change later than the twentieth calendar
day prior to the Effective Date of such Fundamental Change, the Fundamental Change Conversion
Period shall be extended by a number of days equal to the number of days from, and including, the
twentieth calendar day prior to such Effective Date to, but excluding, the date of such notice;
provided that the Fundamental Change Conversion Period shall not be extended beyond the Mandatory
Conversion Date.
(c) Not later than the second Business Day following the Effective Date of a Fundamental
Change, the Corporation shall notify Holders of:
(i) the Fundamental Change Conversion Rate;
(ii) the Fundamental Change Dividend Make-whole Amount and whether the Corporation will
pay such amount, or any portion thereof, in shares of Common Stock and, if applicable, the
portion of such amount that will be paid in Common Stock; and
(iii) the Accumulated Dividend Amount and whether the Corporation will pay such amount,
or any portion thereof, in shares of Common Stock and, if applicable, the portion of such
amount that will be paid in Common Stock.
(d) (i) For any shares of Mandatory Convertible Preferred Stock that are converted during the
Fundamental Change Conversion Period, subject to the limitations described below, the Corporation
may pay the Fundamental Change Dividend Make-whole Amount and the Accumulated Dividend Amount,
determined in the Corporations sole discretion:
(A) in cash;
(B) by delivery of shares of Common Stock; or
(C) through any combination of cash and shares of Common Stock.
(ii) The Corporation shall pay the Fundamental Change Dividend Make-whole Amount and
the Accumulated Dividend Amount in cash, except to the extent the Corporation elects on or
prior to the second Business Day following the Effective Date of a Fundamental Change to
make all or any portion of such payments in shares of Common Stock. If the Corporation
elects to make any such payment, or any portion thereof, in shares of Common Stock, such
shares shall be valued for such purpose at 97% of the applicable Stock Price.
(iii) No fractional shares of Common Stock shall be delivered by the Corporation to
converting Holders in respect of the Fundamental Change Dividend Make-whole Amount or the
Accumulated Dividend Amount. A cash adjustment shall be
20
paid by the Corporation to each
Holder that would otherwise be entitled to receive a
fraction of a share of Common Stock based on the Average VWAP per share of Common Stock
over the five consecutive Trading Day period ending on, and including, the second Trading
Day immediately preceding the relevant Conversion Date.
(iv) Notwithstanding the foregoing, in no event shall the number of shares of Common
Stock delivered in connection with the Fundamental Change Dividend Make-whole Amount and the
Accumulated Dividend Amount, in the aggregate, exceed a number equal to the sum of such
amounts (the Additional Fundamental Change Amount), divided by the greater of the Floor
Price and 97% of the applicable Stock Price. To the extent that the Additional Fundamental
Change Amount exceeds the product of the number of shares of Common Stock delivered in
respect of such Additional Fundamental Change Amount and 97% of the applicable Stock Price,
the Corporation shall, if the Corporation is legally able to do so, notwithstanding any
notice by the Corporation to the contrary, pay such excess amount in cash.
SECTION 10. Conversion Procedures. (a) Pursuant to Section 7, on the Mandatory
Conversion Date, any outstanding shares of Mandatory Convertible Preferred Stock shall
automatically convert into shares of Common Stock. The person or persons entitled to receive the
shares of Common Stock issuable upon mandatory conversion of the Mandatory Convertible Preferred
Stock shall be treated as the record holder(s) of such shares of Common Stock as of 5:00 p.m., New
York City time, on the Mandatory Conversion Date. Except as provided under Section 13(c)(iii) and
Section 13(c)(v), prior to 5:00 p.m., New York City time, on the Mandatory Conversion Date, the
shares of Common Stock issuable upon conversion of the Mandatory Convertible Preferred Stock shall
not be deemed to be outstanding for any purpose and Holders shall have no rights with respect to
such shares of Common Stock, including voting rights, rights to respond to tender offers and rights
to receive any dividends or other distributions on the Common Stock, by virtue of holding the
Mandatory Convertible Preferred Stock.
(b) To effect an Early Conversion pursuant to Section 8, a Holder who
(i) holds a beneficial interest in a Global Preferred Share must deliver to DTC the
appropriate instruction form for conversion pursuant to DTCs conversion program and, if
required, pay all transfer or similar taxes or duties, if any; or
(ii) holds shares of Mandatory Convertible Preferred Stock in definitive, certificated
form must:
(A) complete and manually sign the conversion notice on the back of the
Mandatory Convertible Preferred Stock certificate or a facsimile of such conversion
notice;
(B) deliver the completed conversion notice and the certificated shares of
Mandatory Convertible Preferred Stock to be converted to the Conversion and
Dividend Disbursing Agent;
21
(C) if required, furnish appropriate endorsements and transfer documents; and
(D) if required, pay all transfer or similar taxes or duties, if any.
The Early Conversion shall be effective on the date on which a Holder has satisfied the
foregoing requirements, to the extent applicable (Early Conversion Date). A Holder shall not be
required to pay any transfer or similar taxes or duties relating to the issuance or delivery of
Common Stock if such Holder exercises its conversion rights, but such Holder shall be required to
pay any transfer or similar tax or duty that may be payable relating to any transfer involved in
the issuance or delivery of Common Stock in a name other than the name of such Holder. A
certificate representing the shares of Common Stock issuable upon conversion shall be issued and
delivered to the converting Holder or, if the Mandatory Convertible Preferred Stock being converted
is in book-entry form, the shares of Common Stock issuable upon conversion shall be delivered to
the converting Holder through book-entry transfer through the facilities of the Depositary, in each
case together with delivery by the Corporation to the converting Holder of any cash to which the
converting Holder is entitled, on the later of the third Business Day immediately succeeding the
Early Conversion Date and the Business Day after the Holder has paid in full all applicable taxes
and duties, if any.
The person or persons entitled to receive the shares of Common Stock issuable upon Early
Conversion shall be treated for all purposes as the record holder(s) of such shares of Common Stock
as of 5:00 p.m., New York City time, on the applicable Early Conversion Date. Except as set forth
in Section 13(c)(iii) and Section 13(c)(v), prior to 5:00 p.m., New York City time on such
applicable Early Conversion Date, the shares of Common Stock issuable upon conversion of any shares
of Mandatory Convertible Preferred Stock shall not be deemed to be outstanding for any purpose, and
Holders shall have no rights with respect to such shares of Common Stock (including voting rights,
rights to respond to tender offers for the Common Stock and rights to receive any dividends or
other distributions on the Common Stock) by virtue of holding shares of Mandatory Convertible
Preferred Stock.
In the event that an Early Conversion is effected with respect to shares of Mandatory
Convertible Preferred Stock representing less than all the shares of Mandatory Convertible
Preferred Stock held by a Holder, upon such Early Conversion the Corporation shall execute and
instruct the Registrar and Transfer Agent to countersign and deliver to the Holder thereof, at the
expense of the Corporation, a certificate evidencing the shares of Mandatory Convertible Preferred
Stock as to which Early Conversion was not effected, or, if the Mandatory Convertible Preferred
Stock is held in book-entry form, the Corporation shall cause the Transfer Agent and Registrar to
reduce the number of shares of Mandatory Convertible Preferred Stock represented by the global
certificate by making a notation on Schedule I attached to the global certificate.
(c) To effect a Fundamental Change Conversion pursuant to Section 9, a Holder who
(i) holds a beneficial interest in a Global Preferred Share must deliver to DTC the
appropriate instruction form for conversion pursuant to DTCs conversion program and, if
required, pay all transfer or similar taxes or duties, if any; or
22
(ii) holds shares of Mandatory Convertible Preferred Stock in definitive, certificated
form must:
(A) complete and manually sign the conversion notice on the back of the
Mandatory Convertible Preferred Stock certificate or a facsimile of such conversion
notice;
(B) deliver the completed conversion notice and the certificated shares of
Mandatory Convertible Preferred Stock to be converted to the Conversion and
Dividend Disbursing Agent;
(C) if required, furnish appropriate endorsements and transfer documents; and
(D) if required, pay all transfer or similar taxes or duties, if any.
The Fundamental Change Conversion shall be effective on the date on which a Holder has
satisfied the foregoing requirements, to the extent applicable (the Fundamental Change Conversion
Date). A Holder shall not be required to pay any transfer or similar taxes or duties relating to
the issuance or delivery of Common Stock if such Holder exercises its conversion rights, but such
Holder shall be required to pay any transfer or similar tax or duty that may be payable relating to
any transfer involved in the issuance or delivery of Common Stock in a name other than the name of
such Holder. A certificate representing the shares of Common Stock issuable upon conversion shall
be issued and delivered to the converting Holder or, if the Mandatory Convertible Preferred Stock
being converted is in book-entry form, the shares of Common Stock issuable upon conversion shall be
delivered to the converting Holder through book-entry transfer through the facilities of the
Depositary, in each case together with delivery by the Corporation to the converting Holder of any
cash to which the converting Holder is entitled, on the later of the third Business Day immediately
succeeding the Fundamental Change Conversion Date and the Business Day after the Holder has paid in
full all applicable taxes and duties, if any.
The person or persons entitled to receive the shares of Common Stock issuable upon such
Fundamental Change Conversion shall be treated for all purposes as the record holder(s) of such
shares of Common Stock as of 5:00 p.m., New York City time, on the applicable Fundamental Change
Conversion Date. Except as set forth in Section 13(c)(iii) and Section 13(c)(v), prior to 5:00
p.m., New York City time on such applicable Fundamental Change Conversion Date, the shares of
Common Stock issuable upon conversion of any shares of Mandatory Convertible Preferred Stock shall
not be deemed to be outstanding for any purpose, and Holders shall have no rights with respect to
the Common Stock (including voting rights, rights to respond to tender offers for the Common Stock
and rights to receive any dividends or other distributions on the Common Stock) by virtue of
holding shares of Mandatory Convertible Preferred Stock.
In the event that a Fundamental Change Conversion is effected with respect to shares of
Mandatory Convertible Preferred Stock representing less than all the shares of Mandatory
Convertible Preferred Stock held by a Holder, upon such Fundamental Change Conversion the
Corporation shall execute and instruct the Registrar and Transfer Agent to countersign and
23
deliver
to the Holder thereof, at the expense of the Corporation, a certificate evidencing the shares of
Mandatory Convertible Preferred Stock as to which Fundamental Change Conversion was not effected,
or, if the Mandatory Convertible Preferred Stock is held in book-entry form,
the Corporation shall cause the Transfer Agent and Registrar to reduce the number of shares of
Mandatory Convertible Preferred Stock represented by the global certificate by making a notation on
Schedule I attached to the global certificate.
(d) In the event that a Holder shall not by written notice designate the name in which shares
of Common Stock to be issued upon conversion of such Mandatory Convertible Preferred Stock should
be registered or, if applicable, the address to which the certificate or certificates representing
such shares of Common Stock should be sent, the Corporation shall be entitled to register such
shares, and make such payment, in the name of the Holder as shown on the records of the Corporation
and, if applicable, to send the certificate or certificates representing such shares of Common
Stock to the address of such Holder shown on the records of the Corporation.
(e) Shares of Mandatory Convertible Preferred Stock shall cease to be outstanding on the
applicable Conversion Date, subject to the right of Holders of such shares to receive shares of
Common Stock issuable upon conversion of such shares of Mandatory Convertible Preferred Stock and
other amounts and shares of Common Stock, if any, to which they are entitled pursuant to Sections
7, 8 or 9, as applicable and, if the applicable Conversion Date occurs after the Record Date for
a declared dividend and prior to the immediately succeeding Dividend Payment Date, subject to the
right of the Record Holders of such shares on such Record Date to receive payment of such declared
dividend on such Dividend Payment Date pursuant to Section 3.
SECTION 11. Reservation of Common Stock. (a) The Corporation shall at all times
reserve and keep available out of its authorized and unissued Common Stock or shares of Common
Stock held in the treasury of the Corporation, solely for issuance upon the conversion of shares of
Mandatory Convertible Preferred Stock as herein provided, free from any preemptive or other similar
rights, a number of shares of Common Stock equal to the product of the Maximum Conversion Rate then
in effect and the number of shares of Mandatory Convertible Preferred Stock then outstanding. For
purposes of this Section 11(a), the number of shares of Common Stock that shall be deliverable
upon the conversion of all outstanding shares of Mandatory Convertible Preferred Stock shall be
computed as if at the time of computation all such outstanding shares were held by a single Holder.
(b) Notwithstanding the foregoing, the Corporation shall be entitled to deliver upon
conversion of shares of Mandatory Convertible Preferred Stock, as herein provided, shares of Common
Stock reacquired and held in the treasury of the Corporation (in lieu of the issuance of authorized
and unissued shares of Common Stock), so long as any such treasury shares are free and clear of all
liens, charges, security interests or encumbrances (other than liens, charges, security interests
and other encumbrances created by the Holders).
(c) All shares of Common Stock delivered upon conversion of the Mandatory Convertible
Preferred Stock shall be duly authorized, validly issued, fully paid and non-
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assessable, free and
clear of all liens, claims, security interests and other encumbrances (other than liens, charges,
security interests and other encumbrances created by the Holders).
(d) Prior to the delivery of any securities that the Corporation shall be obligated to deliver
upon conversion of the Mandatory Convertible Preferred Stock, the Corporation shall use
reasonable best efforts to comply with all federal and state laws and regulations thereunder
requiring the registration of such securities with, or any approval of or consent to the delivery
thereof by, any governmental authority.
(e) The Corporation hereby covenants and agrees that, if at any time the Common Stock shall be
listed on the New York Stock Exchange or any other national securities exchange or automated
quotation system, the Corporation shall, if permitted by the rules of such exchange or automated
quotation system, list and keep listed, so long as the Common Stock shall be so listed on such
exchange or automated quotation system, all Common Stock issuable upon conversion of, or issuable
in respect of the payment of dividends, the Accumulated Dividend Amount or the Fundamental Change
Dividend Make-whole Amount on, the Mandatory Convertible Preferred Stock; provided, however, that
if the rules of such exchange or automated quotation system permit the Corporation to defer the
listing of such Common Stock until the first conversion of Mandatory Convertible Preferred Stock
into Common Stock in accordance with the provisions hereof, the Corporation covenants to list such
Common Stock issuable upon the first conversion of the Mandatory Convertible Preferred Stock in
accordance with the requirements of such exchange or automated quotation system at such time.
SECTION 12. Fractional Shares. (a) No fractional shares of Common Stock shall be
issued as a result of any conversion of shares of Mandatory Convertible Preferred Stock.
(b) In lieu of any fractional share of Common Stock otherwise issuable in respect of any
mandatory conversion pursuant to Section 7 or a conversion at the option of the Holder pursuant to
Section 8 or Section 9, the Corporation shall pay an amount in cash (computed to the nearest
cent) equal to the product of (i) that same fraction and (ii) the Average VWAP per share of the
Common Stock over the five consecutive Trading Day period ending on, and including, the second
Trading Day immediately preceding the Mandatory Conversion Date, Fundamental Change Conversion Date
or Early Conversion Date, as applicable.
(c) If more than one share of the Mandatory Convertible Preferred Stock is surrendered for
conversion at one time by or for the same Holder, the number of full shares of Common Stock
issuable upon conversion thereof shall be computed on the basis of the aggregate number of shares
of the Mandatory Convertible Preferred Stock so surrendered.
SECTION 13. Anti-Dilution Adjustments to the Fixed Conversion Rates. (a) Each
Fixed Conversion Rate shall be subject to the following adjustments:
(i) Stock Dividends and Distributions. If the Corporation issues Common Stock to all
or substantially all holders of Common Stock as a dividend or other distribution, each Fixed
Conversion Rate in effect at 5:00 p.m., New York City time, on the date fixed for
determination of the holders of Common Stock entitled to receive such dividend or other
distribution shall be divided by a fraction:
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(A) the numerator of which is the number of shares of Common Stock outstanding
at 5:00 p.m., New York City time, on the date fixed for such determination, and
(B) the denominator of which is the sum of the number of shares of Common
Stock outstanding at 5:00 p.m., New York City time, on the date fixed for such
determination and the total number of shares of Common Stock constituting such
dividend or other distribution.
Any adjustment made pursuant to this clause (i) shall become effective immediately after 5:00 p.m.,
New York City time, on the date fixed for such determination. If any dividend or distribution
described in this clause (i) is declared but not so paid or made, each Fixed Conversion Rate shall
be readjusted, effective as of the date the Board of Directors (or an authorized committee thereof)
publicly announces its decision not to make such dividend or distribution, to such Fixed Conversion
Rate that would be in effect if such dividend or distribution had not been declared. For the
purposes of this clause (i), the number of shares of Common Stock outstanding at 5:00 p.m., New
York City time, on the date fixed for such determination shall not include shares held in treasury
by the Corporation but shall include any shares issuable in respect of any scrip certificates
issued in lieu of fractions of shares of Common Stock. The Corporation shall not pay any dividend
or make any distribution on shares of Common Stock held in treasury by the Corporation.
(ii) Issuance of Stock Purchase Rights. If the Corporation issues to all or
substantially all holders of Common Stock rights or warrants (other than rights or warrants
issued pursuant to a dividend reinvestment plan or share purchase plan or other similar
plans), entitling such holders, for a period of up to 45 calendar days from the date of
issuance of such rights or warrants, to subscribe for or purchase shares of Common Stock at
a price per share less than the Current Market Price, each Fixed Conversion Rate in effect
at 5:00 p.m., New York City time, on the date fixed for determination of the holders of
Common Stock entitled to receive such rights or warrants shall be increased by multiplying
such Fixed Conversion Rate by a fraction:
(A) the numerator of which is the sum of the number of shares of Common Stock
outstanding at 5:00 p.m., New York City time, on the date fixed for such
determination and the number of shares of Common Stock issuable pursuant to such
rights or warrants, and
(B) the denominator of which shall be the sum of the number of shares of
Common Stock outstanding at 5:00 p.m., New York City time, on the date fixed for
such determination and the number of shares of Common Stock equal to the quotient
of the aggregate offering price payable to exercise such rights or warrants divided
by the Current Market Price.
Any adjustment made pursuant to this clause (ii) shall become effective immediately after 5:00
p.m., New York City time, on the date fixed for such determination. In the event that such rights
or warrants described in this clause (ii) are not so issued, each Fixed Conversion Rate shall be
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readjusted, effective as of the date the Board of Directors (or an authorized committee thereof)
publicly announces its decision not to issue such rights or warrants, to such Fixed Conversion Rate
that would then be in effect if such issuance had not been declared. To the extent that such
rights or warrants are not exercised prior to their expiration or shares of Common Stock are
otherwise not delivered pursuant to such rights or warrants upon the exercise of such rights or
warrants, each Fixed Conversion Rate shall be readjusted to such Fixed Conversion Rate that would
then be in effect had the adjustment made upon the issuance of such rights or warrants been made on
the basis of the delivery of only the number of shares of Common Stock actually delivered. In
determining whether any rights or warrants entitle the holders thereof to subscribe for or purchase
shares of Common Stock at less than the Current Market Price, and in determining the aggregate
offering price payable to exercise such rights or warrants, there shall be taken into account any
consideration received for such rights or warrants and the value of such consideration (if other
than cash, to be determined by the Board of Directors (or an authorized committee thereof)). For
the purposes of this clause (ii), the number of shares of Common Stock at the time outstanding
shall not include shares held in treasury by the Corporation but shall include any shares issuable
in respect of any scrip certificates issued in lieu of fractions of shares of Common Stock. The
Corporation shall not issue any such rights or warrants in respect of shares of Common Stock held
in treasury by the Corporation.
(iii) Subdivisions and Combinations of the Common Stock. If outstanding shares of
Common Stock shall be subdivided into a greater number of shares of Common Stock or combined
into a lesser number of shares of Common Stock, each Fixed Conversion Rate in effect at 5:00
p.m., New York City time, on the effective date of such subdivision or combination shall be
multiplied by a fraction:
(A) the numerator of which is the number of shares of Common Stock that would
be outstanding immediately after, and solely as a result of, such subdivision or
combination, and
(B) the denominator of which is the number of shares of Common Stock
outstanding immediately prior to such subdivision or combination.
Any adjustment made pursuant to this clause (iii) shall become effective immediately after 5:00
p.m., New York City time, on the effective date of such subdivision or combination.
(iv) Debt or Asset Distribution. (A) If the Corporation distributes to all or
substantially all holders of Common Stock evidences of its indebtedness, shares of capital
stock, securities, rights to acquire the Corporations capital stock, cash or other assets
(excluding (1) any dividend or distribution covered by Section 13(a)(i), (2) any rights or
warrants covered by Section 13(a)(ii), (3) any dividend or distribution covered by Section
13(a)(v) and (4) any Spin-Off to which the provisions set forth in Section 13(a)(iv)(B)
apply), each Fixed Conversion Rate in effect at 5:00 p.m., New York City time, on the date
fixed for the determination of holders of Common Stock entitled to receive such distribution
shall be multiplied by a fraction:
(1) the numerator of which is the Current Market Price, and
27
(2) the denominator of which is the Current Market Price
minus the Fair Market Value, on such date fixed for determination, of the
portion of the evidences of indebtedness, shares of capital stock,
securities, rights to acquire the Corporations capital stock, cash or
other assets so distributed applicable to one share of Common Stock.
(B) In the case of a Spin-Off, each Fixed Conversion Rate in effect at 5:00
p.m., New York City time, on the date fixed for the determination of holders of
Common Stock entitled to receive such distribution shall be multiplied by a
fraction:
(1) the numerator of which is the sum of (x) the Current
Market Price of the Common Stock and (y) the Fair Market Value of the
portion of those shares of capital stock or similar equity interests so
distributed that is applicable to one share of Common Stock as of the
fifteenth Trading Day after the effective date for such distribution (or,
if such shares of capital stock or equity interests are listed on a
national or regional securities exchange, the Current Market Price of such
securities), and
(2) the denominator of which is the Current Market Price of
the Common Stock.
Any adjustment made pursuant to this clause (iv) shall become effective immediately after 5:00
p.m., New York City time, on the date fixed for the determination of the holders of Common Stock
entitled to receive such distribution. In the event that such distribution described in this
clause (iv) is not so made, each Fixed Conversion Rate shall be readjusted, effective as of the
date the Board of Directors (or an authorized committee thereof) publicly announces its decision
not to make such distribution, to such Fixed Conversion Rate that would then be in effect if such
distribution had not been declared. If an adjustment to each Fixed Conversion Rate is required
under this clause (iv) during any settlement period in respect of shares of Mandatory Convertible
Preferred Stock that have been tendered for conversion, delivery of the shares of Common Stock
issuable upon conversion shall be delayed to the extent necessary in order to complete the
calculations provided for in this clause (iv).
For purposes of this clause (iv) (and subject in all respect to clause (ii)), rights, options
or warrants distributed by the Corporation to all or substantially all holders of its Common Stock
entitling them to subscribe for or purchase shares of the Corporations capital stock, including
Common Stock (either initially or under certain circumstances), which rights, options or warrants,
until the occurrence of a specified event or events (Trigger Event): (i) are deemed to be
transferred with such shares of the Common Stock; (ii) are not exercisable; and (iii) are also
issued in respect of future issuances of the Common Stock, shall be deemed not to have been
distributed for purposes of this clause (iv) (and no adjustment to the Conversion Rate under this
clause (iv) shall be required) until the occurrence of the earliest Trigger Event, whereupon such
rights, options or warrants shall be deemed to have been distributed and an appropriate adjustment
(if any is required) to the Fixed Conversion Rates shall be made under this clause (iv).
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If any
such right, option or warrant, including any such existing rights, options or warrants distributed
prior to the Initial Issue Date, are subject to events, upon the occurrence of which such rights,
options or warrants become exercisable to purchase different securities, evidences of indebtedness
or other assets, then the date of the occurrence of any and each such event shall be deemed to be
the date of distribution and the date fixed for the determination of the holders of Common Stock
entitled to receive such distribution with respect to new rights, options or warrants with such
rights (in which case the existing rights, options or warrants shall be deemed
to terminate and expire on such date without exercise by any of the holders thereof). In
addition, in the event of any distribution (or deemed distribution) of rights, options or warrants,
or any Trigger Event or other event (of the type described in the immediately preceding sentence)
with respect thereto that was counted for purposes of calculating a distribution amount for which
an adjustment to the Fixed Conversion Rates under this clause (iv) was made, (1) in the case of any
such rights, options or warrants that shall all have been redeemed or purchased without exercise by
any holders thereof, upon such final redemption or purchase (x) the Fixed Conversion Rates shall be
readjusted as if such rights, options or warrants had not been issued and (y) the Fixed Conversion
Rates shall then again be readjusted to give effect to such distribution, deemed distribution or
Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share
redemption or purchase price received by a holder or holders of Common Stock with respect to such
rights, options or warrants (assuming such holder had retained such rights, options or warrants),
made to all holders of Common Stock as of the date of such redemption or purchase, and (2) in the
case of such rights, options or warrants that shall have expired or been terminated without
exercise by any holders thereof, the Fixed Conversion Rates shall be readjusted as if such rights,
options and warrants had not been issued.
For purposes of clause (i), clause (ii) and this clause (iv), if any dividend or distribution
to which this clause (iv) is applicable includes one or both of:
(C) a dividend or distribution of shares of Common Stock to which clause (i) is
applicable (the Clause I Distribution); or
(D) an issuance of rights or warrants to which clause (ii) is applicable (the
Clause II Distribution),
then (1) such dividend or distribution, other than the Clause I Distribution, if any, and the
Clause II Distribution, if any, shall be deemed to be a dividend or distribution to which this
clause (iv) is applicable (the Clause IV Distribution) and any Fixed Conversion Rate adjustment
required by this clause (iv) with respect to such Clause IV Distribution shall then be made, and
(2) the Clause I Distribution, if any, and Clause II Distribution, if any, shall be deemed to
immediately follow the Clause IV Distribution and any Fixed Conversion Rate adjustment required by
clause (i) and clause (ii) with respect thereto shall then be made, except that, if determined by
the Corporation (I) the date fixed for determination of the holders of Common Stock entitled to
receive any Clause I Distribution or Clause II Distribution shall be deemed to be the date fixed
for the determination of holders of Common Stock entitled to receive the Clause IV Distribution and
(II) any shares of Common Stock included in any Clause I Distribution or Clause II Distribution
shall be deemed not to be outstanding at 5:00 p.m., New York City time, on the date fixed for such
determination within the meaning of clauses (i) and (ii).
29
(v) Cash Distributions. If the Corporation distributes an amount consisting
exclusively of cash to all or substantially all holders of Common Stock (excluding (1) any
cash that is distributed in a Reorganization Event to which Section 13(e) applies, (2) any
dividend or distribution in connection with the liquidation, dissolution or winding up of
the Corporation and (3) any consideration payable as part of a tender or exchange offer by
the Corporation or any subsidiary of the Corporation covered by Section 13(a)(vi)), each
Fixed Conversion Rate in effect at 5:00 p.m., New York City time, on the date fixed
for determination of the holders of Common Stock entitled to receive such distribution
shall be multiplied by a fraction:
(1) the numerator of which is the Current Market Price, and
(2) the denominator of which is the Current Market Price minus the amount per share of Common
Stock of such distribution.
Any adjustment made pursuant to this clause (v) shall become effective immediately after 5:00 p.m.,
New York City time, on the date fixed for the determination of the holders of Common Stock entitled
to receive such distribution. In the event that any distribution described in this clause (v) is
not so made, each Fixed Conversion Rate shall be readjusted, effective as of the date the Board of
Directors (or an authorized committee thereof) publicly announces its decision not to make such
distribution, to such Fixed Conversion Rate which would then be in effect if such distribution had
not been declared.
(vi) Self Tender Offers and Exchange Offers. If the Corporation or any subsidiary of
the Corporation successfully completes a tender or exchange offer pursuant to a Schedule TO
or registration statement on Form S-4 for Common Stock (excluding any securities convertible
or exchangeable for Common Stock), where the cash and the value of any other consideration
included in the payment per share of Common Stock exceeds the Current Market Price, each
Fixed Conversion Rate in effect at 5:00 p.m., New York City time, on the date of expiration
of the tender or exchange offer (the Expiration Date) shall be multiplied by a fraction:
(A) the numerator of which shall be equal to the sum of:
(1) the aggregate cash and Fair Market Value on the
Expiration Date of any other consideration paid or payable for shares of
Common Stock purchased in such tender or exchange offer; and
(2) the product of the Current Market Price and the number
of shares of Common Stock outstanding immediately after such tender or
exchange offer expires (after giving effect to the purchase or exchange of
shares pursuant to such tender or exchange offer); and
(B) the denominator of which shall be equal to the product of (1) the Current
Market Price and (2) the number of shares of Common Stock outstanding immediately
prior to the time such tender or exchange offer expires.
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Any adjustment made pursuant to this clause (vi) shall become effective immediately after 5:00
p.m., New York City time, on the seventh Trading Day immediately following the Expiration Date. In
the event that the Corporation or one of its subsidiaries is obligated to purchase shares of Common
Stock pursuant to any such tender offer or exchange offer, but the Corporation or such subsidiary
is permanently prevented by applicable law from effecting any such purchases, or all such purchases
are rescinded, then each Fixed Conversation Rate shall be readjusted to be such Fixed Conversion
Rate that would then be in effect if such tender offer or exchange offer
had not been made. Except as set forth in the preceding sentence, if the application of this
clause (vi) to any tender offer or exchange offer would result in a decrease in each Fixed
Conversation Rate, no adjustment shall be made for such tender offer or exchange offer under this
clause (vi). If an adjustment to each Fixed Conversion Rate is required pursuant to this clause
(vi) during any settlement period in respect of shares of Mandatory Convertible Preferred Stock
that have been tendered for conversion, delivery of the related conversion consideration shall be
delayed to the extent necessary in order to complete the calculations provided for in this clause
(vi).
(vii) Except with respect to a Spin-Off, in cases where the Fair Market Value of the
evidences of the Corporations indebtedness, shares of capital stock, securities, rights to
acquire the Corporations capital stock, cash or other assets as to which Section 13(a)(iv)
or Section 13(a)(v) applies, applicable to one share of Common Stock, distributed to
holders of Common Stock equals or exceeds the Average VWAP per share of the Common Stock
over the five consecutive Trading Day period ending on the Trading Day before the Ex-Date
for such distribution, rather than being entitled to an adjustment in each Fixed Conversion
Rate, Holders shall be entitled to receive upon conversion, in addition to a number of
shares of Common Stock otherwise deliverable on the applicable Conversion Date, the kind and
amount of the evidences of the Corporations indebtedness, shares of capital stock,
securities, rights to acquire the Corporations capital stock, cash or other assets
comprising the distribution that such Holder would have received if such Holder had owned
immediately prior to the record date for determining the holders of Common Stock entitled to
receive the distribution, for each share of Mandatory Convertible Preferred Stock, a number
of shares of Common Stock equal to the Maximum Conversion Rate in effect on the date of such
distribution.
(viii) Rights Plans. To the extent that the Corporation has a rights plan in effect
with respect to the Common Stock on any Conversion Date, upon conversion of any shares of
Mandatory Convertible Preferred Stock, converting Holders shall receive, in addition to the
Common Stock, the rights under such rights plan, unless, prior to such Conversion Date, the
rights have separated from the Common Stock, in which case each Fixed Conversion Rate shall
be adjusted at the time of separation of such rights as if the Corporation made a
distribution to all holders of the Common Stock as described in Section 13(a)(iv), subject
to readjustment in the event of the expiration, termination or redemption of such rights.
Any distribution of rights or warrants pursuant to a rights plan that would allow Holders to
receive upon conversion, in addition to any shares of Common Stock, the rights described
therein (unless such rights or warrants have separated from Common Stock) shall not
constitute a distribution of rights or warrants that would entitle Holders to an adjustment
to the Fixed Conversion Rates.
31
(b) Adjustment for Tax Reasons. The Corporation may make such increases in each Fixed
Conversion Rate, in addition to any other increases required by this Section 13, as the
Corporation deems advisable to avoid or diminish any income tax to holders of the Common Stock
resulting from any dividend or distribution of shares of Common Stock (or issuance of rights or
warrants to acquire shares of Common Stock) or from any event treated as such for income tax
purposes or for any other reasons; provided that the same proportionate adjustment must be made to
each Fixed Conversion Rate.
(c) Calculation of Adjustments; Adjustments to Threshold Appreciation Price, Initial Price and
Stock Price. (i) All adjustments to each Fixed Conversion Rate shall be calculated to the nearest
1/10,000th of a share of Common Stock. Prior to the Mandatory Conversion Date, no adjustment in a
Fixed Conversion Rate shall be required unless such adjustment would require an increase or
decrease of at least one percent therein. If any adjustment by reason of this Section 13(c)(i) is
not required to be made, such adjustment shall be carried forward and taken into account in any
subsequent adjustment; provided, however, that with respect to adjustments to be made to the Fixed
Conversion Rates in connection with cash dividends paid by the Corporation, the Fixed Conversion
Rates shall be adjusted regardless of whether such aggregate adjustments amount to one percent or
more of the Fixed Conversion Rates no later than February [ ] of each calendar year;
provided, further, that on the earlier of the Mandatory Conversion Date, an Early Conversion Date
and the Effective Date of a Fundamental Change, adjustments to each Fixed Conversion Rate shall be
made with respect to any such adjustment carried forward that has not been taken into account
before such date.
(ii) If an adjustment is made to the Fixed Conversion Rates pursuant to Sections 13(a)
or 13(b), an inversely proportional adjustment shall also be made to the Threshold
Appreciation Price and the Initial Price solely for purposes of determining which of clauses
(i), (ii) and (iii) of Section 7(b) shall apply on the Mandatory Conversion Date. Such
adjustment shall be made by dividing each of the Threshold Appreciation Price and the
Initial Price by a fraction, the numerator of which shall be either Fixed Conversion Rate
immediately after such adjustment pursuant to Sections 13(a) or 13(b) and the denominator
of which shall be such Fixed Conversion Rate immediately before such adjustment. Because
(a) each of the Applicable Market Value and the Early Conversion Average Price is an Average
VWAP per share of the Common Stock over a 20 consecutive Trading Day period, and (b) each of
the Stock Price and the Five-Day Average Price is an Average VWAP per share of the Common
Stock over a five consecutive Trading Day period, the Corporation shall make appropriate
adjustments to the VWAP per share of the Common Stock prior to the relevant Ex-Date,
effective date or Expiration Date, as the case may be, used to calculate the Applicable
Market Value, the Early Conversion Average Price, the Stock Price and the Five-Day Average
Price to account for any adjustments, pursuant to Section 13(a) or 13(b), to the Initial
Price, the Threshold Appreciation Price and the Fixed Conversion Rates that become
effective, or any event that would require such an adjustment if the Ex-Date, effective date
or Expiration Date of such event occurs, during the applicable period.
(iii) If:
32
(A) the record date for a dividend or distribution on Common Stock occurs
after the end of the 20 consecutive Trading Day period used for calculating the
Applicable Market Value and before the Mandatory Conversion Date; and
(B) such dividend or distribution would have resulted in an adjustment of the
number of shares of Common Stock issuable to the Holders had such record date
occurred on or before the last Trading Day of such 20 consecutive Trading Day
period,
then the Corporation shall deem the Holders to be holders of record, for each share of their
Mandatory Convertible Preferred Stock, of a number of shares of Common Stock equal to the Mandatory
Conversion Rate for purposes of that dividend or distribution. In this case, the Holders would
receive the dividend or distribution on Common Stock together with the number of shares of Common
Stock issuable upon the Mandatory Conversion Date.
(iv) If an adjustment is made to the Fixed Conversion Rates pursuant to Sections 13(a)
or 13(b), a proportional adjustment shall be made to each Stock Price column heading set
forth in the table included in the definition of Fundamental Change Conversion Rate as of
the day on which the Fixed Conversion Rates are so adjusted. Such adjustment shall be made
by multiplying each Stock Price included in such table, applicable immediately prior to such
adjustment, by a fraction, the numerator of which is the Minimum Conversion Rate immediately
prior to the adjustment giving rise to such Stock Price adjustment, and the denominator of
which is the Minimum Conversion Rate as so adjusted.
(v) No adjustment to the Fixed Conversion Rates shall be made if Holders may
participate, at the same time, upon the same terms and otherwise on the same basis as
holders of Common Stock and solely as a result of holding Mandatory Convertible Preferred
Stock, in the transaction that would otherwise give rise to an adjustment as if they held,
for each share of Mandatory Convertible Preferred Stock, a number of shares of Common Stock
equal to the Maximum Conversion Rate then in effect. In addition, the Fixed Conversion
Rates shall not be adjusted:
(A) upon the issuance of any shares of Common Stock pursuant to any present or
future plan providing for the reinvestment of dividends or interest payable on the
Corporations securities and the investment of additional optional amounts in
shares of Common Stock under any plan;
(B) upon the issuance of any shares of Common Stock or rights or warrants to
purchase those shares pursuant to any present or future employee, director or
consultant benefit plan or program of or assumed by the Corporation or any of its
subsidiaries;
(C) upon the issuance of any shares of Common Stock pursuant to any option,
warrant, right or exercisable, exchangeable or convertible security outstanding as
of the Initial Issue Date;
33
(D) for a change solely in the par value of the Common Stock; or
(E) for accumulated and unpaid dividends on the Mandatory Convertible
Preferred Stock, except as provided under Sections 7, 8 and 9.
(d) Notice of Adjustment. Whenever the Fixed Conversion Rates and the Fundamental Change
Conversion Rates set forth in the table in the definition of Fundamental Change Conversion Rate
are to be adjusted, the Corporation shall:
(i) compute such adjusted Fixed Conversion Rates and Fundamental Change Conversion
Rates and prepare and transmit to the Transfer Agent an Officers Certificate setting forth
such adjusted Fixed Conversion Rates and Fundamental Change Conversion Rates, the method of
calculation thereof in reasonable detail and the facts requiring such adjustment and upon
which such adjustment is based;
(ii) as soon as practicable following the occurrence of an event that requires an
adjustment to the Fixed Conversion Rates and the Fundamental Change Conversion Rates,
provide, or cause to be provided, a written notice to the Holders of the occurrence of such
event; and
(iii) as soon as practicable following the determination of such adjusted Fixed
Conversion Rates and Fundamental Change Conversion Rates provide, or cause to be provided,
to the Holders a statement setting forth in reasonable detail the method by which the
adjustments to the Fixed Conversion Rates and Fundamental Change Conversion Rates were
determined and setting forth such adjusted Fixed Conversion Rates and Fundamental Change
Conversion Rates.
(e) Reorganization Events. In the event of:
(i) any consolidation or merger of the Corporation with or into another Person (other
than a merger or consolidation in which the Corporation is the continuing corporation and in
which the Common Stock outstanding immediately prior to the merger or consolidation is not
exchanged for cash, securities or other property of the Corporation or another Person);
(ii) any sale, transfer, lease or conveyance to another Person of all or substantially
all of the property and assets of the Corporation;
(iii) any reclassification of Common Stock into securities including securities other
than Common Stock; or
(iv) any statutory exchange of securities of the Corporation with another Person (other
than in connection with a merger or acquisition),
in each case, as a result of which the Corporations Common Stock would be converted into, or
exchanged for, securities, cash or property (each, a Reorganization Event), each share of
Mandatory Convertible Preferred Stock outstanding immediately prior to such Reorganization
34
Event
shall, without the consent of the Holders, become convertible into the kind of securities, cash and
other property that such Holder would have been entitled to receive if such Holder had converted
its Mandatory Convertible Preferred Stock into Common Stock immediately prior to such
Reorganization Event (such securities, cash and other property, the Exchange Property, with each
"Unit of Exchange Property meaning the kind and amount of such Exchange Property that a Holder of
one share of Common Stock is entitled to receive). For purposes of the foregoing, the type and
amount of Exchange Property in the case of any Reorganization Event that causes the Common Stock to
be converted into the right to receive more than a single type of consideration (determined based
in part upon any form of stockholder election) shall be deemed
to be the weighted average of the types and amounts of consideration received by the holders of
Common Stock that affirmatively make such an election (or of all holders of Common Stock if none
makes an election). The Corporation shall notify Holders of the weighted average as soon as
practicable after such determination is made. The number of Units of Exchange Property for each
share of Mandatory Convertible Preferred Stock converted following the effective date of such
Reorganization Event shall be determined as if references in Section 7, Section 8 and Section 9
to shares of Common Stock were to Units of Exchange Property (without any interest thereon and
without any right to dividends or distributions thereon which have a record date that is prior to
such Conversion Date, except as provided in Section 13(a)(vii), Section 13(c)(iii) and Section
13(c)(v)). For the purpose of determining which of clauses (i), (ii) and (iii) of Section 7(b)
shall apply upon Mandatory Conversion, and for the purpose of calculating the Mandatory Conversion
Rate if clause (ii) of Section 7(b) is applicable, the value of a Unit of Exchange Property shall
be determined in good faith by the Board of Directors (or an authorized committee thereof), except
that if a Unit of Exchange Property includes common stock or American Depositary Receipts (ADRs)
that are traded on a U.S. national securities exchange, the value of such common stock or ADRs
shall be the average over the 20 consecutive Trading Day period ending on, and including, the third
Trading Day immediately preceding the Mandatory Conversion Date of the volume weighted average
prices for such common stock or ADRs, as displayed on the applicable Bloomberg screen (as
determined in good faith by the Board of Directors (or an authorized committee thereof)); or, if
such price is not available, the average market value per share of such common stock or ADRs over
such period as determined, using a volume-weighted average method, by a nationally recognized
independent investment banking firm retained by the Corporation for this purpose.
The above provisions of this Section 13(e) shall similarly apply to successive Reorganization
Events and the provisions of Section 13 shall apply to any shares of capital stock or ADRs of the
Corporation (or any successor thereto) received by the holders of Common Stock in any such
Reorganization Event.
The Corporation (or any successor thereto) shall, as soon as reasonably practicable (but in
any event within 20 calendar days) after the occurrence of any Reorganization Event, provide
written notice to the Holders of such occurrence and of the kind and amount of the cash, securities
or other property that constitute the Exchange Property. Failure to deliver such notice shall not
affect the operation of this
Section 13(e).
Section 13(e).
SECTION 14. Transfer Agent, Registrar, and Conversion and Dividend Disbursing
Agent. The duly appointed Transfer Agent, Registrar and Conversion and Dividend Disbursing Agent
35
for the Mandatory Convertible Preferred Stock shall be Computershare Trust Company, N.A.
The Corporation may, in its sole discretion, remove the Transfer Agent, Registrar or Conversion and
Dividend Disbursing Agent in accordance with the agreement between the Corporation and the Transfer
Agent, Registrar or Conversion and Dividend Disbursing Agent, as the case may be; provided that if
the Corporation removes Computershare Trust Company, N.A., the Corporation shall appoint a
successor transfer agent, registrar or conversion and dividend disbursing agent, as the case may
be, who shall accept such appointment prior to the effectiveness of such removal. Upon any such
removal or appointment, the Corporation shall send notice thereof by first-class mail, postage
prepaid, to the Holders.
SECTION 15. Record Holders. To the fullest extent permitted by applicable law, the
Corporation and the Transfer Agent may deem and treat the Holder of any shares of Mandatory
Convertible Preferred Stock as the true and lawful owner thereof for all purposes.
SECTION 16. Notices. All notices or communications in respect of the Mandatory
Convertible Preferred Stock shall be sufficiently given if given in writing and delivered in person
or by first class mail, postage prepaid, or if given in such other manner as may be permitted in
this Certificate of Designations, in the Amended and Restated Certificate of Incorporation or the
Bylaws and by applicable law. Notwithstanding the foregoing, if the shares of Mandatory
Convertible Preferred Stock are represented by Global Preferred Shares, such notices may also be
given to the Holders in any manner permitted by DTC or any similar facility used for the settlement
of transactions in the Mandatory Convertible Preferred Stock.
SECTION 17. No Preemptive Rights. The Holders shall have no preemptive or
preferential rights to purchase or subscribe to any stock, obligations, warrants or other
securities of the Corporation of any class.
SECTION 18. Other Rights. The shares of the Mandatory Convertible Preferred Stock
shall not have any rights, preferences, privileges or voting powers or relative, participating,
optional or other special rights, or qualifications, limitations or restrictions thereof, other
than as set forth herein or in the Amended and Restated Certificate of Incorporation or as provided
by applicable law.
SECTION 19. Stock Certificates.
(a) Shares of Mandatory Convertible Preferred Stock shall be represented by stock certificates
substantially in the form set forth as Exhibit A hereto.
(b) Stock certificates representing shares of the Mandatory Convertible Preferred Stock shall
be signed by two authorized Officers of the Corporation, in accordance with the Bylaws and
applicable Delaware law, by manual or facsimile signature.
(c) A stock certificate representing shares of the Mandatory Convertible Preferred Stock shall
not be valid until manually countersigned by an authorized signatory of the Transfer Agent and
Registrar. Each stock certificate representing shares of the Mandatory Convertible Preferred Stock
shall be dated the date of its countersignature.
36
(d) If any Officer of the Corporation who has signed a stock certificate no longer holds that
office at the time the Transfer Agent and Registrar countersigns the stock certificate, the stock
certificate shall be valid nonetheless.
SECTION 20. Replacement Certificates.
(a) If physical certificates are issued, and any of the Mandatory Convertible Preferred Stock
certificates shall be mutilated, lost, stolen or destroyed, the Corporation shall, at the expense
of the Holder, issue, in exchange and in substitution for and upon cancellation of the mutilated
Mandatory Convertible Preferred Stock certificate, or in lieu of and substitution for the Mandatory
Convertible Preferred Stock certificate lost, stolen or destroyed, a new Mandatory Convertible
Preferred Stock certificate of like tenor and representing an equivalent Liquidation Preference of
shares of Mandatory Convertible Preferred Stock, but only upon receipt of evidence of such loss,
theft or destruction of such Mandatory Convertible Preferred Stock certificate and indemnity, if
requested, reasonably satisfactory to the Corporation and the Transfer Agent.
(b) The Corporation is not required to issue any certificate representing the Mandatory
Convertible Preferred Stock on or after the Mandatory Conversion Date. In lieu of the delivery of
a replacement certificate following the Mandatory Conversion Date, the Transfer Agent, upon
delivery of the evidence and indemnity described above, shall deliver the shares of Common Stock
issuable and any cash deliverable pursuant to the terms of the Mandatory Convertible Preferred
Stock formerly evidenced by the certificate.
SECTION 21. Book Entry Form.
(a) The Mandatory Convertible Preferred Stock shall be issued in global form (Global
Preferred Shares) eligible for book-entry settlement with the Depositary, represented by one or
more stock certificates in global form registered in the name of the Depositary or a nominee of the
Depositary bearing the form of global securities legend set forth in Exhibit A. The aggregate
number of shares of Mandatory Convertible Preferred Stock represented by each stock certificate
representing Global Preferred Shares may from time to time be increased or decreased by a notation
by the Registrar and Transfer Agent on Schedule I attached to the stock certificate.
(b) Members of, or participants in, the Depositary (Agent Members) shall have no rights
under this Certificate of Designations, with respect to any Global Preferred Shares, and the
Depositary shall be treated by the Corporation, the Registrar and any agent of the Corporation or
the Registrar as the absolute owner of the Mandatory Convertible Preferred Stock. Notwithstanding
the foregoing, nothing herein shall prevent the Corporation, the Registrar or any agent of the
Corporation or the Registrar from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary and its Agent
Members, the operation of customary practices of the Depositary governing the exercise of the
rights of a holder of a beneficial interest in any shares of Mandatory Convertible Preferred Stock.
The Holders may grant proxies or otherwise authorize any Person to take any action that
37
a Holder
is entitled to take pursuant to the Mandatory Convertible Preferred Stock, this Certificate of
Designations or the Amended and Restated Certificate of Incorporation.
(c) Transfers of a Global Preferred Share shall be limited to transfers of such Global
Preferred Share in whole, but not in part, to nominees of the Depositary or to a successor of the
Depositary or such successors nominee.
(d) If DTC is at any time unwilling or unable to continue as Depositary for the Global
Preferred Shares or DTC ceases to be registered as a clearing agency under the Exchange Act, and
in either case a successor Depositary is not appointed by the Corporation within 90 days, the
Corporation shall issue certificated shares in exchange for the Global Preferred Shares. In any
such case, the Global Preferred Shares shall be exchanged in whole for definitive stock
certificates, in substantially the form attached hereto as Exhibit A, representing an equal
aggregate Liquidation Preference. Such definitive stock certificates shall be registered in the
name or names of the Person or Persons specified by DTC in a written instrument to the Registrar.
SECTION 22. Miscellaneous. (a) The Corporation shall pay any and all stock
transfer and documentary stamp taxes that may be payable in respect of any issuance or delivery of
shares of Mandatory Convertible Preferred Stock or shares of Common Stock or other securities
issued on account of Mandatory Convertible Preferred Stock pursuant hereto or certificates
representing such shares or securities. The Corporation shall not, however, be required to pay any
such tax that may be payable in respect of any transfer involved in the issuance or delivery of
shares of Common Stock or other securities in a name other than that in which the shares of
Mandatory Convertible Preferred Stock with respect to which such shares or other securities are
issued or delivered were registered, and shall not be required to make any such issuance or
delivery unless and until the Person otherwise entitled to such issuance or delivery has paid to
the Corporation the amount of any such tax or has established, to the satisfaction of the
Corporation, that such tax has been paid or is not payable.
(b) The Liquidation Preference and the Dividend Rate each shall be subject to equitable
adjustment whenever there shall occur a stock split, combination, reclassification or other similar
event involving the Mandatory Convertible Preferred Stock. Such adjustments shall be determined in
good faith by the Board of Directors (or an authorized committee thereof) and submitted by the
Board of Directors (or such authorized committee thereof) to the Transfer Agent.
38
Exhibit A
[FORM OF FACE OF MANDATORY CONVERTIBLE PREFERRED STOCK
CERTIFICATE]
CERTIFICATE]
[INCLUDE FOR GLOBAL PREFERRED SHARES]
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (DTC), TO THE CORPORATION OR THE TRANSFER AGENT NAMED ON THE FACE
OF THIS CERTIFICATE, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS
MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSORS NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE STATEMENT WITH RESPECT TO SHARES. IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE TRANSFER AGENT NAMED ON THE FACE OF THIS CERTIFICATE SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES
WITH THE FOREGOING RESTRICTIONS.
39
Certificate Number [ ] | [Initial] Number of Shares of Mandatory | |
Convertible Preferred Stock [ ] | ||
CUSIP [ ] | ||
ISIN [ ] |
MOLYCORP, INC.
[ ]% Series A Mandatory Convertible Preferred Stock
(par value $0.001 per share)
(Liquidation Preference as specified below)
(par value $0.001 per share)
(Liquidation Preference as specified below)
MOLYCORP, INC., a Delaware corporation (the Corporation), hereby certifies that [_______]
(the Holder), is the registered owner of [_______]][the number shown on Schedule I hereto of]
fully paid and non-assessable shares of the Corporations designated [____]% Series A Mandatory
Convertible Preferred Stock, with a par value of $0.001 per share and a Liquidation Preference of
$100 per share (the Mandatory Convertible Preferred Stock). The shares of Mandatory Convertible
Preferred Stock are transferable on the books and records of the Registrar, in person or by a duly
authorized attorney, upon surrender of this certificate duly endorsed and in proper form for
transfer. The designations, rights, privileges, restrictions, preferences and other terms and
provisions of the Mandatory Convertible Preferred Stock represented hereby are and shall in all
respects be subject to the provisions of the Certificate of Designations of [____]% Series A
Mandatory Convertible Preferred Stock of Molycorp, Inc. dated [February ___], 2011 as the same may
be amended from time to time (the Certificate of Designations). Capitalized terms used herein but
not defined shall have the meaning given them in the Certificate of Designations. The Corporation
will provide a copy of the Certificate of Designations to the Holder without charge upon written
request to the Corporation at its principal place of business.
Reference is hereby made to the provisions of the Mandatory Convertible Preferred Stock set
forth on the reverse hereof and in the Certificate of Designations, which provisions shall for all
purposes have the same effect as if set forth at this place.
Upon receipt of this executed certificate, the Holder is bound by the Certificate of
Designations and is entitled to the benefits thereunder.
Unless the Transfer Agent and Registrar have properly countersigned, these shares of Mandatory
Convertible Preferred Stock shall not be entitled to any benefit under the Certificate of
Designations or be valid or obligatory for any purpose.
40
IN WITNESS WHEREOF, this certificate has been executed on behalf of the Corporation by two
Officers of the Corporation this [__] of [______] [____].
MOLYCORP, INC. |
||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: |
41
COUNTERSIGNATURE
These are shares of Mandatory Convertible Preferred Stock referred to in the within-mentioned
Certificate of Designations.
Dated: [_______], [____]
[Computershare Trust Company, N.A.], as Registrar and Transfer Agent |
||||
By: |
||||
Title: |
[FORM OF REVERSE OF CERTIFICATE FOR MANDATORY
CONVERTIBLE PREFERRED STOCK]
CONVERTIBLE PREFERRED STOCK]
Cumulative dividends on each share of Mandatory Convertible Preferred Stock shall be payable
at the applicable rate provided in the Certificate of Designations.
The shares of Mandatory Convertible Preferred Stock shall be convertible in the manner and
accordance with the terms set forth in the Certificate of Designations.
The Corporation shall furnish without charge to each Holder who so requests a summary of the
authority of the Board of Directors to determine variations for future series within a class of
stock and the designations, limitations, preferences and relative, participating, optional or other
special rights of each class or series of share capital issued by the Corporation and the
qualifications, limitations or restrictions of such preferences and/or rights.
NOTICE OF CONVERSION
(To be Executed by the Holder
in order to Convert the Mandatory Convertible Preferred Stock)
in order to Convert the Mandatory Convertible Preferred Stock)
The undersigned hereby irrevocably elects to convert (the Conversion) [ ]% Series A
Mandatory Convertible Preferred Stock (the Mandatory Convertible Preferred Stock), of Molycorp,
Inc. (hereinafter called the Corporation), represented by stock certificate No(s). [______] (the
Mandatory Convertible Preferred Stock Certificates), into common stock, par value $0.001 per
share, of the Corporation (the Common Stock) according to the conditions of the Certificate of
Designations of the Mandatory Convertible Preferred Stock (the Certificate of Designations), as
of the date written below. If Common Stock is to be issued in the name of a person other than the
undersigned, the undersigned shall pay all transfer taxes payable with respect thereto, if any.
Each Mandatory Convertible Preferred Stock Certificate (or evidence of loss, theft or destruction
thereof) is attached hereto.
Capitalized terms used but not defined herein shall have the meanings ascribed thereto in or
pursuant to the Certificate of Designations.
Date of Conversion: |
||
Applicable Conversion Rate: |
||
Shares of Mandatory Convertible Preferred Stock to be Converted: |
||
Shares of Common Stock to be Issued:* |
||
Signature: |
||
Name: |
||
Address:** |
||
Fax No.: |
||
* | The Corporation is not required to issue Common Stock until the original Mandatory Convertible Preferred Stock Certificate(s) (or evidence of loss, theft or destruction thereof) to be converted are received by the Corporation or the Conversion and Dividend Disbursing Agent. | |
** | Address where Common Stock and any other payments or certificates shall be sent by the Corporation. |
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned assigns and transfers the shares of Mandatory Convertible
Preferred Stock evidenced hereby to:
(Insert assignees social security or taxpayer identification number, if any)
(Insert address and zip code of assignee)
and irrevocably appoints:
as agent to transfer the shares of Mandatory Convertible Preferred Stock evidenced hereby on the
books of the Transfer Agent. The agent may substitute another to act for him or her.
Date:
Signature: |
||
(Sign exactly as your name appears on the other side of this Certificate)
Signature Guarantee: |
||
(Signature must be guaranteed by an eligible guarantor institution that is a bank,
stockbroker, savings and loan association or credit union meeting the requirements of the Transfer
Agent, which requirements include membership or participation in the Securities Transfer Agents
Medallion Program (STAMP) or such other signature guarantee program as may be determined by the
Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended.)
Schedule I1
Molycorp, Inc.
Global Preferred Share
[____]% Series A Mandatory Convertible Preferred Stock
[____]% Series A Mandatory Convertible Preferred Stock
Certificate Number:
The number of shares of Mandatory Convertible Preferred Stock initially represented by this Global
Preferred Share shall be [________]. Thereafter the Transfer Agent and Registrar shall note
changes in the number of shares of Mandatory Convertible Preferred Stock evidenced by this Global
Preferred Share in the table set forth below:
Amount of Decrease in | Amount of Increase in | Number of Shares | ||||
Number of Shares | Number of Shares | Represented by this Global | Signature of Authorized | |||
Represented by this Global | Represented by this Global | Preferred Share following | Officer of Transfer Agent | |||
Preferred Share | Preferred Share | Decrease or Increase | and Registrar | |||
1 | Attach Schedule I only to Global Preferred Shares. |