Document:

exh47.htm

	  	  	
                                                                                 Exhibit 4.7

	
SUBSCRIPTION RIGHTS CERTIFICATE CONTROL No.:

	
  

	
NUMBER OF SUBSCRIPTION RIGHTS:

 

THE TERMS AND CONDITIONS OF THE SUBSCRIPTION RIGHTS OFFERING ARE SET FORTH IN THE COMPANY’S PROSPECTUS DATED [•], 2011 (THE “PROSPECTUS”) AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM COMPUTERSHARE TRUST COMPANY, N.A. (THE “SUBSCRIPTION AGENT”) OR FROM THE COMPANY.

 

KEYSTONE CONSOLIDATED INDUSTRIES, INC.

Incorporated under the laws of the State of Delaware

 

NON - TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE

 

Evidencing Non-Transferable Subscription Rights to Purchase Shares of Common Stock, Par Value $0.01 Per Share,

of Keystone Consolidated Industries, Inc.

Subscription Price:  $[•] per Share

THE SUBSCRIPTION RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE

5:00 P.M., NEW YORK CITY TIME, ON [•], 2011, UNLESS EXTENDED BY THE COMPANY

REGISTERED OWNER:

 

THIS CERTIFIES THAT the registered owner whose name is inscribed hereon is the owner of the number of non-transferable subscription rights (“Subscription Rights”) set forth above.  Each whole Subscription Right entitles the holder thereof to subscribe for and purchase 0.25 shares of common stock, with a par value of $0.01 per share (“Common Stock”), of Keystone Consolidated Industries, Inc., a Delaware corporation, at a subscription price of $[•] per share (the “Basic Subscription Right”), pursuant to a subscription rights offering (the “Subscription Rights Offering”), on the terms and subject to the conditions set forth in the Prospectus and the “Instructions as to Use of Keystone Consolidated Industries, Inc. Subscription Rights Certificate” accompanying this Subscription Rights Certificate.  If any shares of Common Stock available for purchase in the Subscription Rights Offering are not purchased by other holders of Subscription Rights pursuant to the exercise of their Basic Subscription Rights (the “Excess Shares”), any Subscription Rights holder that exercises its Basic Subscription Rights in full may subscribe for any or all of the Excess Shares pursuant to the terms and conditions of the Subscription Rights Offering, subject to proration, as described in the Prospectus (the “Over-Subscription Privilege”).

 

The Subscription Rights represented by this Subscription Rights Certificate may be exercised by completing Forms 1 and 3 and any other appropriate forms on the reverse side hereof and by retuning the full payment of the subscription price for each share of Common Stock in accordance with the “Instructions as to Use of Keystone Consolidated Industries, Inc. Subscription Rights Certificate” that accompanies this Subscription Rights Certificate.

 

Regulatory Limitation.  All Subscription Rights issued to a holder of record who would, in the Company’s opinion, be required to obtain prior clearance or approval from any state, federal, or non-U.S. regulatory authority for the ownership or exercise of Subscription Rights or the ownership of additional shares of Common Stock are null and void and may not be held or exercised by any such holder, unless such required prior clearance or approval has been obtained.

 

IMPORTANT: PLEASE READ THE PROSPECTUS AND THE INSTRUCTIONS CAREFULLY.

 

The holder subscribes for the number of shares of Common Stock indicated on the form upon the terms and conditions specified in the Prospectus relating thereto.  Receipt of the Prospectus is hereby acknowledged.

 

This Subscription Rights Certificate is not valid unless countersigned by the subscription agent and registered by the registrar.

 

Witness the seal of Keystone Consolidated Industries, Inc. and the signatures of its duly authorized officers.

 

 

	
Dated:

	  	  	  
	  	  	  	  
	  	
Bert E. Downing, Jr.

Vice President, Chief Financial Officer

	  	
Sandra K. Myers

Secretary

  

  

  

DELIVERY OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE

 

To exercise your Subscription Rights, this Subscription Rights Certificate or a Notice of Guaranteed Delivery for Subscription Rights Certificate must be received by the Subscription Agent, Computershare Trust Company, N.A., together with full payment of the Subscription Price for the shares of Common Stock subscribed for pursuant to both the Basic Subscription Right and the Over-Subscription Privilege, prior to the expiration of the Subscription Rights Offering.  Payment of the Subscription Price must be made by check or bank draft drawn upon a United States bank or postal, telegraphic or express money order payable to “Computershare Trust Company, N.A., as Subscription Agent.”  This completed and executed Subscription Rights Certificate and full payment of the Subscription Price must be delivered to the Subscription Agent by one of the following methods:

 

	
By First Class Mail:

	
By Registered or Certified Mail, or Overnight Delivery:

	
Computershare Trust Company, N.A.

c/o Voluntary Corporate Actions

P.O. Box 43011

Providence, RI 02940-3011

	
Computershare Trust Company, N.A.

c/o Voluntary Corporate Actions

Suite V

250 Royall Street

Canton, MA 02021

 

Delivery of this Subscription Rights Certificate or the Subscription Price payment to an address other than one of the addresses listed above shall not constitute valid delivery.

 

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY

 

	
 

FORM 1 - EXERCISE OF SUBSCRIPTION RIGHTS

To subscribe for shares pursuant to your Basic Subscription Right, please complete lines (a) and (c) and sign under Form 3.  To subscribe for shares pursuant to your Over-Subscription Privilege, please also complete line (b) and sign under Form 3.  To the extent you subscribe for more shares of Common Stock than you are entitled under either the Basic Subscription Right or the Over-Subscription Privilege, you will be deemed to have elected to purchase the maximum number of shares of Common Stock for which you are entitled to subscribe under the Basic Subscription Right or Over-Subscription Privilege, as applicable.

(a)  EXERCISE OF BASIC SUBSCRIPTION PRIVILEGE

I elect to exercise my Basic Subscription Right to purchase _________ shares of Common Stock* X the Subscription Price of $[•] per share

= $________________.

(b)   EXERCISE OF OVER-SUBSCRIPTION PRIVILEGE

I elect to exercise my Over-Subscription Privilege to purchase _________ shares of Common Stock** X the Subscription Price of $10.00 per share

= $________________.

(c)  TOTAL AMOUNT OF PAYMENT ENCLOSED = $ _________________

___________________________

*    May not exceed the  number of Subscription Rights listed on the face of this Subscription Rights Certificate.

**  You may only exercise your Over-Subscription Privilege if you fully exercise your Basic Subscription Right.

 

FORM 2 - DELIVERY TO DIFFERENT ADDRESS

If you wish for the Common Stock underlying your Subscription Rights to be delivered to an address different from that shown on the face of this Subscription Rights Certificate, please enter the alternate address below, sign under Form 3 and have your signature guaranteed under Form 4.

___________________________________________________________________

___________________________________________________________________

 

	  	
FORM 3 - SIGNATURE

I acknowledge that I have received the Prospectus for this Subscription Rights Offering and I hereby subscribe for the number of shares indicated in Form 1 on the terms and conditions specified in the Prospectus.

This form must be signed by the registered holder(s) exactly as their name(s) appear(s) on the certificate(s) or by person(s) authorized to sign on behalf of the registered holder(s) by documents transmitted herewith.

Signature(s):   ____________________________________________________

                        ____________________________________________________

                        ____________________________________________________

Date: __________________________, 2011

Daytime Telephone Number: ________________________________________

FORM 4 - SIGNATURE GUARANTEE

This form must be completed if you have completed any portion of Form 2.

Signature Guaranteed: ______________________________________________

 (Name of Bank or Firm)

By: ______________________________________________

      (Signature of Officer)

IMPORTANT:  The signature(s) should be guaranteed by an eligible guarantor institution (bank, stock broker, savings & loan association or credit union) with membership in an approved signature guarantee medallion program pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934, as amended.

 

THIS RIGHTS OFFERING HAS BEEN QUALIFIED OR IS BELIEVED TO BE EXEMPT FROM QUALIFICATION ONLY UNDER THE FEDERAL LAWS OF THE UNITED STATES AND THE LAWS OF THE STATES IN THE UNITED STATES. RESIDENTS OR OTHER JURISDICTIONS MAY NOT PURCHASE THE SECURITIES OFFERED HEREBY UNLESS THEY CERTIFY THAT THEIR PURCHASES OF SUCH SECURITIES ARE EFFECTED IN ACCORDANCE WITH THE APPLICABLE LAWS OF SUCH JURISDICTIONS.

 

For instructions on the use of this Subscription Rights Certificate, consult the Subscription Agent, Computershare Trust Company, N.A., at c/o Voluntary Corporate Actions, P.O. Box 4301, Providence, RI 02940-3011, or (781) 575-2332, or our investor relations department at 5430 LBJ Freeway, Suite 1740, Three Lincoln Centre, Dallas, TX 75240, or (972) 458-0028.EDIETS.COM, INC. AT (310) 954 -1105.

 

 

THIS RIGHTS OFFERING EXPIRES AT 5:00 P.M., NEW YORK CITY TIME, ON [•], 2011 UNLESS EXTENDED, AND THIS SUBSCRIPTION RIGHTS CERTIFICATE IS VOID THEREAFTERexh107.htm

	
 Exhibit 10.7

 

 

 

[•], 2011

 

 

Mr. Bert E. Downing, Jr.

Vice President, Chief Financial Officer,

 Corporate Controller and Treasurer

Keystone Consolidated Industries, Inc.

5430 LBJ Freeway, Suite 1740

Dallas, Texas  75240

Dear Bert:

In connection with the proposed distribution (“Distribution”) by Keystone Consolidated Industries, Inc. (“Keystone”), at no charge to the stockholders of Keystone, of non-transferrable subscription rights (the “Subscription Rights”) to purchase an aggregate of up to 3,025,483 shares (“Shares”) of common stock, par value $0.01 per share, of Keystone (the “Subscription Rights Offering”), on the following terms and conditions:

	
·  

	
Keystone stockholders would receive one subscription right in the Distribution for each Share held by such stockholders;

	
·  

	
each whole Subscription Right entitles each Keystone stockholder to purchase 0.25 Shares (the “Basic Subscription Right”) for $[•] per Share (the “Subscription Price”), provided that Keystone will not issue fractional Shares in the Subscription Rights Offering, and stockholders will only be entitled to purchase a whole number of Shares, rounded down to the nearest whole Share; and

	
·  

	
any Keystone stockholder electing to fully exercise its Basic Subscription Rights will have the ability to exercise an over-subscription privilege to subscribe for any additional Shares that may be available for purchase in the Subscription Rights Offering (the “Over-Subscription Privilege”),

Keystone and Contran Corporation (“Contran”) hereby agree in this letter agreement (“Letter Agreement”) as follows:

1.           Provided Keystone does not increase the Subscription Price, prior to the expiration of the Subscription Rights Offering, Contran will fully exercise its Basic Subscription Right.

  

  

  

2.           Provided Keystone does not increase the Subscription Price, prior to the expiration of the Subscription Rights Offering, subject to the availability of Shares, Contran will exercise its Over-Subscription Privilege to the fullest extent possible.

3.           Provided Keystone effects the Distribution, whether or not the Subscription Rights Offering is completed, Contran will reimburse Keystone for all of Keystone’s reasonable out-of-pocket costs and expenses incurred by Keystone in connection with the Subscription Rights Offering.

4.           Assuming the Subscription Rights Offering is completed, Keystone will use all of the proceeds from the Subscription Rights Offering to declare and pay a special one-time cash dividend (the “Special Dividend”) of $[•] per Share to all holders of Shares on a record date to be determined by the Board of Directors of Keystone shortly after completion of the Subscription Rights Offering, with the declaration of such Special Dividend by the Board to occur immediately following the completion of the Subscription Rights Offering.

5.           In exercising its Basic Subscription Rights and Over-Subscription Privilege, Contran shall only be obligated to pay prior to the expiration of the Subscription Rights Offering to Computershare Trust Company, N.A., the subscription agent (“Subscription Agent”) for the Subscription Rights Offering as well as Keystone’s transfer agent for its Shares, an aggregate amount equal to $[•] (“Contran Net Payment”).  Following completion of the Subscription Rights Offering, on the payment date for the Special Dividend, Keystone will cause the Subscription Agent to pay to Contran the amount, if any, represented by the excess of (A) the aggregate amount of the Special Dividend payable to Contran, based on the Shares owned by Contran as of the record date of the Special Dividend, including Shares acquired by Contran in the Subscription Rights Offering, over (B) the amount determined by subtracting the Contran Net Payment from the aggregate amount Contran would be required to pay for the Shares acquired by Contran in the Subscription Rights Offering.  As a result of the foregoing, Contran will be deemed to have fully paid for all of the Shares acquired in the Subscription Rights Offering, and Keystone will be deemed to have fully paid the aggregate amount of the Special Dividend owed to Contran.

6.           Keystone shall cause the Subscription Agent to hold the Contran Net Payment and any amounts paid to the Subscription Agent by stockholders of Keystone other than Contran in respect of Shares actually acquired by such Keystone stockholders in connection with the Subscription Rights Offering (collectively, the “Subscription Agent Aggregate Funds”) until the payment date for the Special Dividend.  None of such Subscription Agent Aggregate Funds will be distributed to Keystone.

  

  

  

7.           Keystone’s and Contran’s respective obligations under this Letter Agreement are subject to the terms and conditions of the Subscription Rights Offering as more fully described in the Registration Statement, including, without limitation, Keystone’s ability to terminate and cancel the Subscription Rights Offering at any time and for any reason.  As used herein, the term “Registration Statement” means the Registration Statement on Form S-1 relating to the Subscription Rights Offering (File No. 333-[•]), as amended and as may be further amended from time to time (including post-effective amendments), filed by Keystone with the Securities and Exchange Commission.

8.           This Letter Agreement shall terminate and the transactions contemplated hereby shall be abandoned in the event Keystone terminates or cancels the Subscription Rights Offering.

9.           This Letter Agreement is not intended to and does not confer upon any person other than the parties hereto any rights or remedies under this Letter Agreement and nothing set forth in this Letter Agreement shall confer upon or give to, or be construed to confer upon or give to, any other person (including, without limitation, any Keystone stockholders, directors, employees, officers or creditors or any successors thereto or assigns thereof, or any third party claiming by or through any of the foregoing) any benefits, rights or remedies under or by reason of, or any rights to enforce or cause Keystone to enforce, the obligations of Contran hereunder or any other provisions of this Letter Agreement.

10.           This Letter Agreement will be governed and construed in accordance with the laws of the State of Delaware without regard to the principles of conflicts of law thereof.

  

  

  

Please indicate your agreement and acceptance of the foregoing by signing below.

Sincerely,

Contran Corporation

                                                                  

By:  Bobby D. O’Brien

        Vice President & Chief Financial Officer

Agreed and accepted:

Keystone Consoldated Industries, Inc.

                                                                  

By:  Bert E. Downing, Jr.

        Vice President, Chief Financial Officer,

        Corporate Controller and Treasurer

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