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SEC Follow Up Exhibits Part C SEC_OEA_FCIC_001760-2501

SEC Follow Up Exhibits Part C SEC_OEA_FCIC_001760-2501

SEC Follow Up Exhibits Part C SEC_OEA_FCIC_001760-2501

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Table of Contents<br />

exercised by the holders thereof to purchase shares of common stock after receipt of the Stockholder Approvals relating to the<br />

Warrants and upon the receipt of regulatory approvals to the extent applicable and, upon receipt of such approvals, can be exercised to<br />

purchase shares of common stock at any time, in whole or in part, after issuance until the fifth anniversary of the issuance of such<br />

Warrants.<br />

Exercise Price of the Warrants<br />

The Warrants are exercisable for $7.10 per share of common stock. The exercise price of the Warrants will be reduced by $0.50<br />

on the last day of each six-month period following the date of issuance of the Warrants if the Stockholder Approvals relating to the<br />

Warrants have not been obtained by such date, up to a maximum reduction of $2.00.<br />

Anti-Dilution and Other Provisions<br />

If prior to the third anniversary (or the second anniversary in certain circumstances) after the date of issuance of the Warrants,<br />

(i) we issue or sell, or agree to issue or sell, more than $300 million of equity or equity-linked securities, other than certain permitted<br />

issuances, for consideration per share less than the Applicable Price (as defined below), or (ii) there occurs any Fundamental Change<br />

(as defined below) relating to the Company in which the price of the underlying security is less than the Applicable Price, then the<br />

exercise price of the Warrants in effect immediately prior to each such issuance or sale will immediately be reduced to the price of the<br />

securities in such issuance, sale or Fundamental Change, as applicable. In that event, the number of shares of common stock issuable<br />

upon the exercise of the Warrants will be increased to the number obtained by dividing (x) the product of (1) the number of shares of<br />

common stock issuable upon the exercise of the Warrants before that adjustment and (2) the exercise price in effect immediately prior<br />

to the issuance, sale or Fundamental Change giving rise to this adjustment, by (y) the new exercise price determined in accordance<br />

with the immediately preceding sentence. Our obligation to deliver additional shares of common stock upon exercise of the Warrants<br />

in these circumstances is subject to a maximum aggregate issuance limitation. “Applicable Price” means the greater of (A) the greater<br />

of the market price per share of outstanding common stock on (i) the date on which we issue or sell any common stock and (ii) the<br />

first date of the announcement of such issuance, sale or Fundamental Change and (B) $5.00. The exercise price is also subject to<br />

customary anti-dilution adjustments.<br />

Fundamental Change<br />

<strong>Up</strong>on the occurrence of a “Fundamental Change,” which is defined in the form of warrant as certain events pertaining to a change<br />

of control or liquidation of the Company, the holder of a Warrant may cause us to purchase its Warrant, in whole or in part, at the<br />

higher of (1) the fair market value of the Warrant and (2) a valuation based on a computation of the option value of the Warrant using<br />

a Black-Scholes methodology. Payment by us to the holder of the Warrant of the purchase price will be due upon the occurrence of the<br />

Fundamental Change. At our election, all or any portion of the purchase price may be paid in cash or in our common stock valued at<br />

the market price of a share of our common stock as of (A) the last trading day prior to the date on which this payment occurs or<br />

(B) the first date of the announcement of a Fundamental Change (whichever is less), so long as the payment does not cause us to fail<br />

to comply with applicable NYSE requirements or other regulatory requirements. To the extent that a payment in our common stock<br />

would cause us to fail to comply with NYSE rules or the other regulatory requirements, once the maximum number of shares of our<br />

common stock that would not result in the contravention of such requirements has been delivered, the remainder of such purchase<br />

price may be paid in the form of cash or other equity securities having a fair market value equal to the value of the shares of our<br />

common stock that would have been issued to the holder of the Warrant absent the limitations described above.<br />

Exchange for Preferred Stock<br />

At any time after September 30, 2008 but prior to the receipt of the Stockholder Approvals and any applicable regulatory<br />

approval, the holders of the Warrants may cause us to exchange the Warrants for a number of shares of Series G Preferred Stock equal<br />

to the quotient of (1) the value of the Warrants exchanged<br />

S-22

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