agreement containing or imposing, directly or indirectly, any restriction (including, but not limited to, any covenant or agreement) on the Companys ability to make required payments on or
redeem the shares of Series B Preferred Stock, (iv) any amendment, modification, alteration or repeal of any provision of the Certificate of Incorporation or any other certificate of designations of the Company that would have an adverse
effect, in any material respect, on the rights, preferences, privileges or voting power of the shares of Series B Preferred Stock or any holder thereof or any amendment, modification, alteration or repeal of the Series B Certificate of Designations,
(iv) any increase in the number of members of the Board at a time when the sum of (x) the aggregate value of deferred Scheduled Redemption Amounts relating to past Scheduled Redemption Dates (plus any unpaid interest accruing thereon)
plus (y) the aggregate present value of future Scheduled Redemption Amounts, calculated using a discount rate of 7.25% (such sum, the Aggregate Series B Liquidation Preference) is greater than $125,000,000 or
(vi) any action or inaction that would reduce the stated amount of any share of Series B Preferred Stock to below $1.00 per share.
Other Rights
Upon
liquidation, the Series B Preferred Stock will rank (A) senior to the Common Stock and (B) junior to the Series A Preferred Stock, and will have a right to be paid the Aggregate Series B Liquidation Preference.
The Company will be automatically obligated to redeem all shares of Series B Preferred Stock upon (i) a Change of Control (as defined in
the Series B Certificate of Designations), (ii) an assertion from the Company or the Board that any portion of the Series B Preferred Stock or any of the Companys obligations under the Series B Certificate of Designations are invalid or
unenforceable, (iii) if indebtedness outstanding under the Credit Agreement is accelerated (and such acceleration is not rescinded), or (iv) the Company or any of its material subsidiaries enters bankruptcy or similar proceedings affecting
creditors or equity holders rights.
Each holder of Series B Preferred Stock will have the right to require the Company to
redeem all, but not less than all, of such holders shares of Series B Preferred Stock if the Consolidated EBITDA (as defined in the Series B Certificate of Designations) of the Company and its subsidiaries exceeds $600,000,000 for two
consecutive fiscal quarters.
Under the terms of the Series B Certificate of Designations, the Majority in Interest (as defined in the
Series B Certificate of Designations) has the exclusive right, voting separately as a class, to elect or appoint one director to the Board (such director the Series B Director).
The Majority in Interest has a continuing right, voting separately as a class, to elect or appoint the Series B Director, and an exclusive
right to remove the Series B Director at any time for any reason or no reason (with or without cause), subject to the rights of other holders to remove any Series B Director for cause to the extent provided by the DGCL, until the first date on which
the Aggregate Series B Liquidation Preference is not greater than $125,000,000 (the Series B Threshold Date). From and after the Series B Threshold Date, the Majority in Interest will have no right to elect or appoint any
directors to the Board. If the Majority in Interest is no longer entitled to elect or appoint a Series B Director, then the then-serving Series B Director will automatically be deemed to have resigned from the Board.
So long as any shares of Series B Preferred Stock are outstanding, the Company may not take certain actions without the written consent of the
Majority in Interest (as defined in the Series B Certificate of Designations), including, among other things, increasing the size of the Board of Directors so long as the Aggregate Series B Liquidation Preference is greater than $125,000,000.
Anti-Takeover Protections
Certain
provisions in the Certificate of Incorporation and the Bylaws summarized below may be deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best
interests, including attempts that might result in a premium being paid over the market price for the shares held by stockholders. These provisions are intended to enhance the likelihood of continuity and stability in the composition of the Board
and in the policies formulated by the Board and to discourage certain types of transactions that may involve an actual or threatened change of control.
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