Document:

prcp-ex415_490.htm

Exhibit 4.15

 

 

Description of the Registrant’s Securities Registered Pursuant to 

Section 12 of the Securities Exchange Act of 1934

 

The following description of Perceptron Inc.’s (the “Company”) common stock, and related Series A Preferred Stock purchase rights (the “Rights”), is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Restated Articles of Incorporation, as amended (the “Articles of Incorporation”), our Amended and Restated Bylaws, as amended (the “Bylaws”), and the First Amended and Restated Rights Agreement with American Stock Transfer & Trust Company, LLC, as rights agent, dated as of August 20, 2015, as amended by the First Amendment to Amended and Restated Rights Agreement, dated as of August 20, 2018 (the “ Rights Agreement”), all of which are filed as exhibits to the Annual Report on Form 10-K of which this exhibit is a part. We encourage you to read the Articles of Incorporation, Bylaws, Rights Agreement and the applicable provisions of the Michigan Business Corporation Act (the “MBCA”) for additional information.

General

Pursuant to our Articles of Incorporation, we have the authority to issue 20,000,000 shares of capital stock, consisting of 19,000,000 shares of our common stock, $0.01 par value, and 1,000,000 shares of preferred stock, without par value. 

Common Stock

As of September 24, 2020, 9,763,675 shares of our common stock were outstanding.  All of the outstanding shares of common stock are fully paid and nonassessable.

Voting Rights

The holders of shares of our common stock are entitled to one vote per share on all matters to be voted on by shareholders. Directors are elected by a plurality of the votes cast by shareholders entitled to vote on the election of directors. Except as otherwise provided by applicable law, our Articles of Incorporation, or our Bylaws, every matter other than the election of directors will be decided by the affirmative vote of a majority of the votes cast by shareholders entitled to vote on such matter.

Dividend Rights

Subject to the rights of any then-outstanding shares of preferred stock, our shareholders are entitled to receive dividends as may be declared by the Company’s Board of Directors (the “Board”) out of funds legally available for the payment of dividends.  The declaration and amount of future dividends is at the discretion of our Board and will depend on our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements and other factors and restrictions our Board deems relevant.

Liquidation Rights

Our shareholders are entitled to share equally and ratably in our net assets upon a liquidation or dissolution after the payment or provision for all liabilities, subject to any preferential liquidation rights of any preferred stock that at the time may be outstanding.

No Preemptive, Conversion or Redemption Rights

Our shareholders have no preemptive, subscription, conversion or redemption rights, and are not subject to further calls or assessments by us.  There are no sinking fund provisions applicable to our common stock.

Listing

074612.000001  4812-6716-1548.1 

Our common stock is traded on the Nasdaq Global Market under the symbol “PRCP.”

Transfer Agent 

The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company, LLC.

Effects of Certain Provisions of Our Articles of Incorporation and Bylaws and Michigan Law

Our Articles of Incorporation, our Bylaws and the MBCA contain provisions that may deter or render more difficult proposals to acquire control of the Company, including proposals a shareholder might consider to be in his or her best interest, impede or lengthen a change in membership of the Board and make removal of our management more difficult.

Special Meetings of Shareholders

Our Bylaws provide that special meetings of shareholders may be called at any time only by the President, at the direction of the Board or by the holders of at least ten (10%) percent of the common stock then outstanding and entitled to vote at such meeting, or as may otherwise be provided by law.  

Advance Notice Provisions

Our Bylaws provide that proposals and director nominations made by a shareholder to be voted upon at any annual meeting or special meeting of shareholders may be taken only if such proposal or director nomination is properly brought at such meeting.  In order for any matter to be considered properly brought at such meeting, a shareholder must comply with certain requirements regarding advance notice to us.

In the case of an annual meeting, a shareholder’s notice must be delivered to the secretary at the principal offices of the Company not earlier than the close of business on the 90th day and not later than the close of business on the 60th day prior to the one-year anniversary of the preceding year’s annual meeting. However, if the annual meeting is advanced by more than 30 days or delayed by more than 70 days from such anniversary date or if the Company did not hold an annual meeting in the preceding fiscal year, the notice must be delivered not earlier than the close of business on the 90th day prior to such annual meeting and not later than the close of business on the 60th day prior to such annual meeting or, if later, the 10th day following the day on which a public announcement of the date of such meeting is first made by the Company.

In the case of a special meeting, a shareholder notice is timely if it (A) is delivered to the secretary at the principal executive offices of the Company not earlier than the close of business on the 90th day prior to such special meeting and not later than the close of business on the later of the 60th day prior to such special meeting or, if later, the 10th day following the day on which a public announcement is first made of the date of the special meeting, or (B) is delivered at the time a request for a special meeting is submitted in proper form to the secretary, by the shareholders requesting such special meeting, if the special meeting is called at the request of shareholders.

Shareholder proposals that are late or that do not include all required information may be rejected.  This could prevent shareholders from bringing certain matters before a special meeting or annual meeting, including making nominations for directors.

No Cumulative Voting

Under Michigan law, shareholders do not have cumulative voting rights for the election of directors unless the Articles of Incorporation so provide. Our Articles of Incorporation do not provide for cumulative voting.

Issuance of Preferred Stock

Our Articles of Incorporation authorize up to 1,000,000 shares of preferred stock.  Preferred stock may be issued from time to time in one or more series, and the Board, without further approval of the shareholders, is authorized to fix the 

074612.000001  4812-6716-1548.1 

rights, preferences, privileges and restrictions applicable to each series of preferred stock.  The purpose of authorizing the Board to determine these rights, preferences, privileges and restrictions is to eliminate delays associated with a shareholder vote on specific issuances.  The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, adversely affect the voting power of our then-existing shareholders and, under certain circumstances, make it more difficult for a third party to gain control of the Company.

The Rights Agreement

General

Under our Rights Agreement, if an acquiror accumulates 20% or more of the Company’s common stock, each Right granted under the Rights Agreement would permit the holder of a Right to acquire newly issued shares of common stock of the Company or, in certain circumstances, common stock of the acquiror, at a price equal to half their market value for the $73.00 exercise price of the Rights. Rights held by the acquiror and by certain related persons and transferees would become void. However, before an acquiror acquires more than 20% of the outstanding common stock, the Rights may be redeemed by the Board or, in certain circumstances, by vote of the shareholders, or the terms of the Rights may be modified by the Board to, among other things, exempt a particular acquiror from the dilutive effects of the Rights. These provisions have the effect of encouraging potential acquirors to negotiate with the Board before acquiring 20% or more of the common stock so that the Board may redeem or modify the Rights as part of an acquisition without triggering the dilutive effects of the Rights.

The Rights

Each Right represents the right to purchase one one-hundredth of a share of Series A Preferred Stock of the Company. Each share of common stock outstanding has one Right attached to it, so that the purchase of a share of common stock is also a purchase of the attached Right. Certificates representing the common stock also represent the attached Rights. The Rights are not currently exercisable or separately tradable. 

Exercise price

After the Rights become exercisable, each Right will become separately tradable and, initially will entitle the holder to purchase from the Company one one-hundredth of a fully paid non-assessable share of Series A Preferred Stock, no par value (the “Preferred Stock”), of the Company, at a purchase price of $73.00 per one one-hundredth of a share (the “Purchase Price”), subject to adjustment. Each one one-hundredth of a share of Preferred Stock has rights that are roughly equivalent to one share of common stock.

Exercisability

Except for permitted offer, the Rights will become exercisable and separately tradable upon the earlier of:

(1) ten business days following a public announcement that a person or group of affiliated or associated persons (an “Acquiring Person”) acquired, or obtained the right to acquire beneficial ownership of 20% or more of the outstanding common stock; or

(2) ten business days (or such later date as the Board may determine) following the commencement or announcement of an intention to commence a tender offer or exchange offer by any person if, upon consummation thereof, such person would be an Acquiring Person.

As soon as practicable following the dated the Rights become exercisable, separate certificates evidencing the will be mailed to holders of record of the common stock as of the close of business on the date the Rights became exercisable and such separate certificate alone will evidence the Rights.

 Consequences of a Person or Group Becoming an Acquiring Person

074612.000001  4812-6716-1548.1 

If a person or group becomes an Acquiring Person, all holders of our rights except the acquiring person shall have the right to receive upon exercise and payment to the Company of the Purchase Price, instead of one one-hundredth of a share of Preferred Stock, common shares of the acquiring or surviving company having an average market value equal to two times the Purchase Price.

If the Company is later acquired in a merger or similar transaction after the date our rights become exercisable, all holders of the Rights except the Acquiring Person may, will then have the right to receive upon exercise and payment to the Company of the Purchase Price, instead of one one-hundredth of a share of Preferred Stock, that number of shares of common stock having an average market value equal to two times the Purchase Price.

Expiration

Our rights will expire on August 20, 2021.

Redemption

At any time prior to a person or group becoming an Acquiring Person (or if pursuant to a permitted offer, such later date as fixed by the Board), the Board may redeem the Rights in whole, but not in part, at a price of $.001 per Right. In addition, if the Company receives a qualified offer, the Rights may be redeemed by way of shareholder action taken at a special meeting of shareholders called for the purpose of voting on a resolution accepting the qualified offer and authorizing the redemption of the Rights pursuant to the provisions of the Rights Agreement.  

Exchange

After a person or group becomes an Acquiring Person, but before an Acquiring Person owns 50% or more of our outstanding common stock, the Board may cause shareholders to exchange all or part of their Rights for shares of common stock or Preferred Stock at a ratio of one share of common stock or one one-hundredth of a share of Preferred Stock per Right, subject to adjustment.  As soon as the Board has determined to make such exchange, the Rights may no longer be exercised. 

Anti-Dilution Provisions

Our Board may adjust the Purchase Price of our Preferred Stock, the number of shares of our Preferred Stock issuable and the number of our outstanding rights to prevent dilution that may occur from a stock dividend, a stock split or a reclassification of our Preferred Stock or common stock. No adjustments to the Purchase Price of our Preferred Stock of less than 1% will be made.

Amendments

The Rights Agreement may be amended without shareholder approval prior to the date the Rights become exercisable at the Board’s discretion. After the date the Rights become exercisable, the Board generally may amend the Rights Agreement without the consent of the Rights holders to cure any ambiguity, correct defects or inconsistencies, shorten or lengthen time periods or supplement or change any other provision which does not adversely affect the Rights holders.

074612.000001  4812-6716-1548.1Exhibit 4.1

 

IN
THE UNITED STATES BANKRUPTCY COURT

for the Southern district of texas

houston
DIVISION

 

	 	)	 
	In re:	)	Chapter 11
	 	)	 
	FTS INTERNATIONAL, INC., et al.,1	)	Case No. 20-34622 (DRJ)
	 	)	 
	Debtors.	)	(Jointly Administered)
	 	)	 
	 	)	Re:  Docket No. 13

 

ORDER
(A) APPROVING NOTIFICATION

AND HEARING PROCEDURES FOR CERTAIN TRANSFERS

OF
COMMON STOCK AND (B) GRANTING RELATED RELIEF

 

Upon the motion (the
 “Motion”)2 of the above-captioned
debtors and debtors in possession (collectively, the “Debtors”) for entry of an order (this “Order”),
(a) approving the Procedures related to transfers of Beneficial Ownership of Common Stock, (b) directing that any purchase,
sale, or other transfer of Beneficial Ownership of Common Stock in violation of the Procedures shall be null and void ab initio,
and (c) granting related relief, all as more fully set forth in the Motion; and upon the First Day Declaration; and this Court
having jurisdiction over this matter pursuant to 28 U.S.C. § 1334; and this Court having found that this is a core proceeding
pursuant to 28 U.S.C. § 157(b) and that this Court may enter a final order consistent with Article III of the United
States Constitution; and this Court having found that venue of this proceeding and the Motion in this district is proper pursuant
to 28 U.S.C. §§ 1408 and 1409; and this Court having found that the relief requested in the Motion is in the best interests
of the Debtors’ estates, their creditors, and other parties in interest; and this Court having found that the Debtors’
notice of the Motion and opportunity for a hearing on the Motion were appropriate under the circumstances and no other notice need
be provided; and this Court having reviewed the Motion and having heard the statements in support of the relief requested therein
at a hearing before this Court (the “Hearing”); and this Court having determined that the legal and factual
bases set forth in the Motion and at the Hearing establish just cause for the relief granted herein; and upon all of the proceedings
had before this Court; and after due deliberation and sufficient cause appearing therefor, it is HEREBY ORDERED THAT:

 

 

		1	The Debtors in these chapter 11 cases, along with the
last four digits of each Debtor’s federal tax identification number, are: FTS International, Inc. (0081); FTS International
Manufacturing, LLC (9132); and FTS International Services, LLC (7729). The location of Debtor FTS International, Inc.’s
principal place of business and the Debtors’ service address in these chapter 11 cases is 777 Main Street, Suite 2900, Fort
Worth, Texas 76102.
	 	 	 

		2	Capitalized terms used but not otherwise defined herein
have the meanings ascribed to them in the Motion.

 

    

     

    

 

1.            The
Motion is granted on a final basis as set forth herein.

 

2.            The
Procedures, as set forth in Exhibit 1 attached hereto, are hereby approved; provided, however, any party
in interest may file a motion and seek emergency relief from the Procedures subject to the Debtors’ rights to oppose such
relief.

 

3.            Any
transfer of Beneficial Ownership of Common Stock in violation of the Procedures, including but not limited to the notice requirements,
shall be null and void ab initio.

 

4.            In
the case of any such transfer of Beneficial Ownership of Common Stock in violation of the Procedures, including but not limited
to the notice requirements, the person or entity making such transfer shall be required to take remedial actions, which may include
the actions specified in Private Letter Ruling 201010009 (Dec. 4, 2009), necessary to appropriately reflect that such transfer
is null and void ab initio.

 

5.            The
Debtors may retroactively or prospectively waive any and all restrictions, stays, and notification procedures set forth in the
Procedures.

 

6.            Within
three (3) business days of the entry of this Order or as soon as reasonably practicable, the Debtors shall send the notice
of this Order (the “Notice of Entry of NOL Order”) annexed to the Procedures as Exhibit 1D to all
parties that were served with notice of the Motion, publish the Notice of Entry of NOL Order once in the national edition of The
New York Times, file a Form 8-K with a reference to the entry of this Order, and post the Procedures to the website established
by Epiq Corporate Restructuring, LLC (“Epiq”) for these chapter 11 cases (http://dm.epiq11.com/FTSI), such notice
being reasonably calculated to provide notice to all parties that may be affected by the Procedures, whether known or unknown,
and no further notice of the Procedures shall be necessary.

 

    2

     

    

 

7.            Nothing
herein shall preclude any person desirous of acquiring any Common Stock from requesting relief from this Order from this Court,
subject to the Debtors’ rights to oppose such relief.

 

8.            Other
than to the extent that this Order expressly conditions or restricts trading in Common Stock, nothing in this Order or in the Motion
shall, or shall be deemed to, prejudice, impair, or otherwise alter or affect the rights of any holders of Common Stock, including
in connection with the treatment of any such stock under any chapter 11 plan or any applicable bankruptcy court order.

 

9.            The
requirements set forth in this Order are in addition to the requirements of Bankruptcy Rule 3001(e) and all applicable
law and do not excuse compliance therewith.

 

10.          Notwithstanding
the relief granted herein and any actions taken pursuant to such relief, nothing in this Order shall
be deemed: (a) an admission as to the validity of any prepetition claim, interest, or lien against a Debtor entity;
(b) a waiver of the Debtors’ or any other party in interest’s rights to dispute any prepetition claim, interest,
or lien on any grounds; (c) a promise or requirement to pay prepetition claims; (d) a waiver of the obligation of any
party in interest to file a proof of claim; (e) an implication or admission that any particular claim, interest, or lien is of
a type specified or defined in the Motion or any order granting the relief requested by the Motion; (f) a request or
authorization to assume any prepetition agreement, contract, or lease pursuant to section 365 of the Bankruptcy Code; or (g) a
waiver of the Debtors’ or any other party in interest’s rights under the Bankruptcy Code or any other applicable law.

 

    3

     

    

 

11.            Notice
of the Motion as provided therein shall be deemed good and sufficient notice of such Motion and the requirements of Bankruptcy
Rule 6004(a) and the Bankruptcy Local Rules are satisfied by such notice.

 

12.            Notwithstanding
Bankruptcy Rule 6004(h), the terms and conditions of this Order are immediately effective and enforceable upon its entry.

 

13.            The
Debtors are authorized to take all actions necessary to effectuate the relief granted in this Order in accordance with the Motion.

 

14.            This
Court retains exclusive jurisdiction with respect to all matters arising from or related to the implementation, interpretation,
and enforcement of this Order.

 

	Signed:  September 24, 2020	 
	 	/s/ David R. Jones
	 	DAVID R. JONES
	 	UNITED STATES BANKRUPTCY JUDGE

 

    4

     

    

 

Exhibit 1

 

Procedures for Transfers of Common Stock

 

    

     

    

 

PROCEDURES FOR TRANSFERS OF COMMON
STOCK

 

The following procedures apply to transfers
of Common Stock:1

 

		a.	Any entity (as defined in section 101(15) of the Bankruptcy Code) who currently is or becomes a
Substantial Shareholder (as defined herein) must file with the Court, and serve upon: (i) the Debtors, 777 Main Street, Suite 2900,
Fort Worth, Texas 76102, Attn: Jennifer Keefe; (ii) proposed co-counsel to the Debtors, Kirkland & Ellis LLP, 609
Main Street, Houston, Texas 77002, Attn: Brian Schartz, P.C. (bschartz@kirkland.com); and 601 Lexington Avenue, New York, New York
10022, Attn: Joshua A. Sussberg, P.C. (jsussberg@kirkland.com), Emily E. Geier (emily.geier@kirkland.com), and Alexander Nicas
(alexander.nicas@kirkland.com); (iii) proposed co-counsel to the Debtors, Winston and Strawn LLP, 800 Capitol Street, Suite 2400,
Houston, Texas 77002, Attn: Katherine A. Preston (kpreston@winston.com), and Winston and Strawn LLP, 35 W Wacker Drive, Chicago, IL
60601, Attn: Daniel J. McGuire (dmcguire@winston.com); (iv) counsel to the Ad Hoc Group of Secured Noteholders, Davis Polk &
Wardwell LLP, 450 Lexington Avenue, New York, NY 10017, Attn: Donald S. Bernstein, Damian S. Schaible, and Michael Pera; (v) counsel
to the Ad Hoc Group of Term Loan Lenders, Stroock & Stroock & Lavan LLP, 180 Maiden Lane, New York, New York
10038, Attn: Jayme T. Goldstein (jgoldstein@stroock.com) and Daniel P. Ginsberg (dginsberg@stroock.com); (vi) counsel to any
statutory committee appointed in these cases; (vii) Office of the United States Trustee, 515 Rusk Street, Suite 3516,
Houston, Texas 77002; and (viii) to the extent not listed herein, those parties requesting notice pursuant to Bankruptcy Rule 2002
(collectively, the “Notice Parties”), a declaration of such status, substantially in the form of Exhibit 1A
attached to the Procedures (each, a “Declaration of Status as a Substantial Shareholder”), on or before the
later of (A) 30 calendar days after the date of the Notice of Entry of NOL Order (as defined herein), or (B) 10 calendar
days after becoming a Substantial Shareholder; provided, however, that, for the avoidance of doubt, the other procedures
set forth herein shall apply to any Substantial Shareholder even if no Declaration of Status as a Substantial Shareholder has been
filed.

 

		b.	Prior to effectuating any transfer of Beneficial Ownership of Common Stock that would result in
an increase in the amount of Common Stock of which a Substantial Shareholder has Beneficial Ownership or would result in an entity
or individual becoming a Substantial Shareholder, the parties to such transaction must file with the Court, and serve upon the
Notice Parties, an advance written declaration of the intended transfer of Common Stock, as applicable, substantially in the form
attached to the Procedures as Exhibit 1B (each, a “Declaration of Intent to Accumulate Common
Stock”).

 

 

		1	Capitalized terms used but not otherwise defined herein
have the meanings ascribed to them in the Motion.

 

    

     

    

 

		c.	Prior to effectuating any transfer of Beneficial Ownership of Common Stock that would result in
a decrease in the amount of Common Stock of which a Substantial Shareholder has Beneficial Ownership or would result in an entity
or individual ceasing to be a Substantial Shareholder, the parties to such transaction must file with the Court, and serve upon
the Notice Parties, an advance written declaration of the intended transfer of Common Stock substantially in the form attached
to the Procedures as Exhibit 1C (each, a “Declaration of Intent to Transfer Common Stock,”
and together with a Declaration of Intent to Accumulate Common Stock, each, a “Declaration of Proposed Transfer”).

 

		d.	The Debtors shall have 20 calendar days after receipt of a Declaration of Proposed Transfer
to file with the Court and serve on such Substantial Shareholder or potential Substantial Shareholder an objection to any proposed
transfer of Beneficial Ownership of Common Stock described in the Declaration of Proposed Transfer on the grounds that such transfer
might adversely affect the Debtors’ ability to use their Tax Attributes. If the Debtors file an objection, such transaction
will remain ineffective unless such objection is withdrawn by the Debtors, or such transaction is approved by a final and non-appealable
order of the Court. If the Debtors do not object within such 20-day period, such transaction can proceed solely as set forth in
the Declaration of Proposed Transfer. Further transactions within the scope of this paragraph must be the subject of additional
notices in accordance with the procedures set forth herein, with an additional 20-day waiting period for each Declaration of Proposed
Transfer. To the extent that the Debtors receive an appropriate Declaration of Proposed Transfer and determine in their business
judgment not to object, they shall provide notice of that decision as soon as is reasonably practicable to any statutory committee(s) appointed
in these chapter 11 cases.

 

		e.	For purposes of the Procedures: (i) a “Substantial Shareholder” is any
entity or individual that has Beneficial Ownership of at least 242,138 shares of Common Stock (representing approximately 4.5%
of all issued and outstanding shares of Common Stock).2

 

 

2
       Based on approximately 5,380,859 shares of Common Stock outstanding as
of the Petition Date.

 

    2

     

    

 

NOTICE PROCEDURES

 

The following notice procedures apply to
these Procedures:

 

		a.	No later than 2 business days following entry of the Order, the Debtors shall serve a notice by
first class mail, substantially in the form attached to the Procedures as Exhibit 1D (the “Notice
of Entry of NOL Order”), on: (i) the Office of the U.S. Trustee for the Southern District of Texas; (ii) the
entities listed on the consolidated list of creditors holding the 20 largest unsecured claims; (iii) the U.S. Securities and
Exchange Commission; (iv) the Internal Revenue Service; (v) counsel to the Ad Hoc Group of Secured Noteholders; (vi) counsel
to the Ad Hoc Group of Term Loan Lenders; (vii) any official committees appointed in these chapter 11 cases; and (viii) all
registered and nominee holders of Common Stock (with instructions to serve down to the beneficial holders of Common Stock, as applicable).

 

		b.	All registered and nominee holders of Common Stock shall be required to serve the Notice of Entry
of NOL Order on any holder for whose benefit such registered or nominee holder holds such Common Stock, down the chain of ownership
for all such holders of Common Stock.

 

		c.	Any entity or individual, or broker or agent acting on such entity’s or individual’s
behalf who sells Common Stock to another entity or individual, shall be required to serve a copy of the Notice of Entry of NOL
Order on such purchaser of such Common Stock, or any broker or agent acting on such purchaser’s behalf.

 

		d.	As soon as is practicable following entry of the order, the Debtors shall (i) submit a copy
of the Notice of Entry of NOL Order (modified for publication) for publication in The New York Times (national edition);
and (ii) file a Form 8-K with a reference to the entry of the Order.

 

		e.	To the extent confidential information is required in any declaration described in the Procedures,
such confidential information may be filed and served in redacted form; provided, however, that any such declarations
served on the Debtors shall not be in redacted form. The Debtors shall keep all information provided in such declarations
strictly confidential and shall not disclose the contents thereof to any person except: (i) to the extent necessary to respond
to a petition or objection filed with the Court; (ii) to the extent otherwise required by law; or (iii) to the extent
that the information contained therein is already public; provided, however, that the Debtors may disclose the contents
thereof to their professional advisors, who shall keep all such notices strictly confidential and shall not disclose the contents
thereof to any other person, subject to further Court order. To the extent confidential information is necessary to respond to
a petitioner objection filed with the Court, such confidential information shall be filed under seal or in a redacted form.

 

    3

     

    

 

Exhibit 1A

 

Declaration of Status as a Substantial
Shareholder

 

    

     

    

 

IN
THE UNITED STATES BANKRUPTCY COURT

for the Southern district of texas

houston
DIVISION

 

	 	)	 
	In re:	)	Chapter 11
	 	)	 
	FTS INTERNATIONAL, INC., et al.,1	)	Case No. 20-34622 (DRJ)
	 	)	 
	Debtors.	)	(Jointly Administered)
	 	)	 
	 	)	Re:  Docket No. 13

 

declaration
of status as a substantial shareholder2

 

PLEASE TAKE NOTICE
that the undersigned party is/has become a Substantial Shareholder with respect to the common stock of FTS International, Inc.
or of any Beneficial Ownership therein (the “Common Stock”). FTS International, Inc. is a debtor and debtor
in possession in Case No. 20-34622 (DRJ) pending in the United States Bankruptcy Court for the Southern District of Texas
(the “Court”).

 

 

		1	The Debtors in these chapter 11 cases, along with the
last four digits of each Debtor’s federal tax identification number, are: FTS International, Inc. (0081); FTS International
Manufacturing, LLC (9132); and FTS International Services, LLC (7729). The location of Debtor FTS International, Inc.’s
principal place of business and the Debtors’ service address in these chapter 11 cases is 777 Main Street, Suite 2900, Fort
Worth, Texas 76102.
	 	 	 

		2	For purposes of these Procedures:  (i) a “Substantial
Shareholder” is any entity or individual that has Beneficial Ownership of at least 242,138 shares of Common Stock
(representing approximately 4.5 percent of all of the issued and outstanding shares of Common Stock); (ii) “Beneficial
Ownership” will be determined in accordance with the applicable rules of sections 382 and 383 of the Internal
Revenue Code of 1986, 26 U.S.C. §§ 1–9834 as amended (the “IRC”), and the Treasury Regulations
thereunder (other than Treasury Regulations section 1.382-2T(h)(2)(i)(A)), and includes direct, indirect, and constructive
ownership (e.g., (1) a holding company would be considered to beneficially own all equity securities owned
by its subsidiaries, (2) a partner in a partnership would be considered to beneficially own its proportionate share of any
equity securities owned by such partnership, (3) an individual and such individual’s family members may be treated
as one individual, (4) persons and entities acting in concert to make a coordinated acquisition of equity securities may
be treated as a single entity, and (5) a holder would be considered to beneficially own equity securities that such holder
has an Option to acquire). An “Option” to acquire stock includes all interests described in Treasury Regulations
section 1.382-4(d)(9), including any contingent purchase right, warrant, convertible debt, put, call, stock subject to risk
of forfeiture, contract to acquire stock, or similar interest, regardless of whether it is contingent or otherwise not currently
exercisable.

 

    

     

    

 

PLEASE TAKE FURTHER
NOTICE that, as of __________ __, 2020, the undersigned party currently has Beneficial Ownership of _________ shares of Common
Stock. The following table sets forth the date(s) on which the undersigned party acquired Beneficial Ownership or otherwise
has Beneficial Ownership of such Common Stock:

 

	Number of Shares	 	Date Acquired
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

(Attach additional page or pages if
necessary)

 

PLEASE TAKE FURTHER
NOTICE that the last four digits of the taxpayer identification number of the undersigned party are _______.

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to that certain Order (A) Approving Notification and Hearing Procedures for Certain Transfers
of Common Stock and (B) Granting Related Relief [Docket No. 106] (the “Order”), this declaration
(this “Declaration”) is being filed with the Court and served upon the Notice Parties (as defined in the Order).

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to 28 U.S.C. § 1746, under penalties of perjury, the undersigned party hereby declares that he or
she has examined this Declaration and accompanying attachments (if any), and, to the best of his or her knowledge and belief, this
Declaration and any attachments hereto are true, correct, and complete.

 

    2

     

    

 

	 	Respectfully submitted,
	 	(Name of Substantial Shareholder)
	 	By: 	                   

	 	Name:	 

	 	Address:	                                                                   
	 	

	 	Telephone:	

	 	Facsimile: 	 

 

	Dated: _____________ __, 2020	 

	 	,	 	 
	 	 	 	 
	(City)	 	(State)	 

 

    3

     

    

 

Exhibit 1B

 

Declaration of Intent to Accumulate Common
Stock

 

    

     

    

  

IN
THE UNITED STATES BANKRUPTCY COURT

for the Southern district of texas

houston
DIVISION

 

	 	)	 
	In re:	)	Chapter 11
	 	)	 
	FTS INTERNATIONAL, INC., et al.,1	)	Case No. 20-34622 (DRJ)
	 	)	 
	Debtors.	)	(Jointly Administered)
	 	)	 
	 	)	Re:  Docket No. 13

 

declaration
of intent to

accumulate COmmon StocK2

 

PLEASE TAKE NOTICE
that the undersigned party hereby provides notice of its intention to purchase, acquire, or otherwise accumulate (the “Proposed
Transfer”) one or more shares of common stock of FTS International, Inc. or of any Beneficial Ownership therein
(the “Common Stock”). FTS International, Inc. is a debtor and debtor in possession in Case No. 20-34622
(DRJ) pending in the United States Bankruptcy Court for the Southern District of Texas (the “Court”).

 

 

		1	The Debtors in these chapter 11 cases, along with the
last four digits of each Debtor’s federal tax identification number, are: FTS International, Inc. (0081); FTS International
Manufacturing, LLC (9132); and FTS International Services, LLC (7729). The location of Debtor FTS International, Inc.’s
principal place of business and the Debtors’ service address in these chapter 11 cases is 777 Main Street, Suite 2900, Fort
Worth, Texas 76102.
	 	 	 

		2	For purposes of these Procedures:  (i) a “Substantial
Shareholder” is any entity or individual that has Beneficial Ownership of at least 242,138 shares of Common Stock
(representing approximately 4.5 percent of all of the issued and outstanding shares of Common Stock); (ii) “Beneficial
Ownership” will be determined in accordance with the applicable rules of sections 382 and 383 of the Internal
Revenue Code of 1986, 26 U.S.C. §§ 1–9834 as amended (the “IRC”), and the Treasury Regulations
thereunder (other than Treasury Regulations section 1.382-2T(h)(2)(i)(A)), and includes direct, indirect, and constructive
ownership (e.g., (1) a holding company would be considered to beneficially own all equity securities owned
by its subsidiaries, (2) a partner in a partnership would be considered to beneficially own its proportionate share of any
equity securities owned by such partnership, (3) an individual and such individual’s family members may be treated
as one individual, (4) persons and entities acting in concert to make a coordinated acquisition of equity securities may
be treated as a single entity, and (5) a holder would be considered to beneficially own equity securities that such holder
has an Option to acquire). An “Option” to acquire stock includes all interests described in Treasury Regulations
section 1.382-4(d)(9), including any contingent purchase right, warrant, convertible debt, put, call, stock subject to risk
of forfeiture, contract to acquire stock, or similar interest, regardless of whether it is contingent or otherwise not currently
exercisable.

 

    

     

    

 

PLEASE TAKE FURTHER
NOTICE that, if applicable, on ___________ __, 2020, the undersigned party filed a declaration of status as a Substantial Shareholder
with the Court and served copies thereof as set forth therein.

 

PLEASE TAKE FURTHER
NOTICE that the undersigned party currently has Beneficial Ownership of _________ shares of Common Stock.

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to the Proposed Transfer, the undersigned party proposes to purchase, acquire, or otherwise accumulate
Beneficial Ownership of _________ shares of Common Stock or an Option with respect to _________ shares of Common Stock. If the
Proposed Transfer is permitted to occur, the undersigned party will have Beneficial Ownership of _________ shares of Common Stock.

 

PLEASE TAKE FURTHER
NOTICE that the last four digits of the taxpayer identification number of the undersigned party are _______.

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to that certain Order (A) Approving Notification and Hearing Procedures for Certain Transfers
of Common Stock and (B) Granting Related Relief [Docket No. 106] (the “Order”), this declaration
(this “Declaration”) is being filed with the Court and served upon the Notice Parties (as defined in the Order).

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to the Order, the undersigned party acknowledges that it is prohibited from consummating the Proposed
Transfer unless and until the undersigned party complies with the Procedures set forth therein.

 

PLEASE TAKE FURTHER
NOTICE that the Debtors have 20 calendar days after receipt of this Declaration to object to the Proposed Transfer described
herein. If the Debtors file an objection, such Proposed Transfer will remain ineffective unless such objection is withdrawn by
the Debtors or such transaction is approved by a final and nonappealable order of the Court. If the Debtors do not object within
such 20-day period, then after expiration of such period the Proposed Transfer may proceed solely as set forth in this Declaration.

 

    2

     

    

 

PLEASE TAKE FURTHER
NOTICE that any further transactions contemplated by the undersigned party that may result in the undersigned party purchasing,
acquiring, or otherwise accumulating Beneficial Ownership of additional shares of Common Stock will each require an additional
notice filed with the Court to be served in the same manner as this Declaration.

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to 28 U.S.C. § 1746, under penalties of perjury, the undersigned party hereby declares that he or
she has examined this Declaration and accompanying attachments (if any), and, to the best of his or her knowledge and belief, this
Declaration and any attachments hereto are true, correct, and complete.

 

	 	Respectfully submitted,
	 	(Name of Declarant)
	 	By: 	                   

	 	Name:	 

	 	Address:	                                                                   
	 	

	 	Telephone:	

	 	Facsimile: 	 

 

	Dated: _____________ __, 2020	 

	 	,	 	 
	 	 	 	 
	(City)	 	(State)	 

  

    3

     

    

 

Exhibit 1C

 

Declaration of Intent to Transfer Common
Stock

 

    

     

    

  

IN
THE UNITED STATES BANKRUPTCY COURT

for the Southern district of texas

houston
DIVISION

 

	 	)	 
	In re:	)	Chapter 11
	 	)	 
	FTS INTERNATIONAL, INC., et al.,1	)	Case No. 20-34622 (DRJ)
	 	)	 
	Debtors.	)	(Jointly Administered)
	 	)	 
	 	)	Re:  Docket No. 13

 

declaration
of intent to transfer Common Stock2

 

PLEASE TAKE NOTICE
that the undersigned party hereby provides notice of its intention to sell, trade, or otherwise transfer (the “Proposed
Transfer”) one or more shares of common stock of FTS International, Inc. or of any Beneficial Ownership therein
(the “Common Stock”). FTS International, Inc. is a debtor and debtor in possession in Case No. 20-34622 (DRJ)
pending in the United States Bankruptcy Court for the Southern District of Texas (the “Court”).

 

 

		1	The Debtors in these chapter 11 cases, along with the
last four digits of each Debtor’s federal tax identification number, are: FTS International, Inc. (0081); FTS International
Manufacturing, LLC (9132); and FTS International Services, LLC (7729). The location of Debtor FTS International, Inc.’s
principal place of business and the Debtors’ service address in these chapter 11 cases is 777 Main Street, Suite 2900, Fort
Worth, Texas 76102.
	 	 	 

		2	For purposes of these Procedures:  (i) a “Substantial
Shareholder” is any entity or individual that has Beneficial Ownership of at least 242,138 shares of Common Stock
(representing approximately 4.5 percent of all of the issued and outstanding shares of Common Stock); (ii) “Beneficial
Ownership” will be determined in accordance with the applicable rules of sections 382 and 383 of the Internal
Revenue Code of 1986, 26 U.S.C. §§ 1–9834 as amended (the “IRC”), and the Treasury Regulations
thereunder (other than Treasury Regulations section 1.382-2T(h)(2)(i)(A)), and includes direct, indirect, and constructive
ownership (e.g., (1) a holding company would be considered to beneficially own all equity securities owned
by its subsidiaries, (2) a partner in a partnership would be considered to beneficially own its proportionate share of any
equity securities owned by such partnership, (3) an individual and such individual’s family members may be treated
as one individual, (4) persons and entities acting in concert to make a coordinated acquisition of equity securities may
be treated as a single entity, and (5) a holder would be considered to beneficially own equity securities that such holder
has an Option to acquire). An “Option” to acquire stock includes all interests described in Treasury Regulations
section 1.382-4(d)(9), including any contingent purchase right, warrant, convertible debt, put, call, stock subject to risk
of forfeiture, contract to acquire stock, or similar interest, regardless of whether it is contingent or otherwise not currently
exercisable.

 

    

     

    

 

PLEASE TAKE FURTHER
NOTICE that, if applicable, on __________ __, 2020, the undersigned party filed a declaration of status as a Substantial Shareholder
with the Court and served copies thereof as set forth therein.

 

PLEASE TAKE FURTHER
NOTICE that the undersigned party currently has Beneficial Ownership of _________ shares of Common Stock.

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to the Proposed Transfer, the undersigned party proposes to sell, trade, or otherwise transfer Beneficial
Ownership of _________ shares of Common Stock or an Option with respect to _________ shares of Common Stock. If the Proposed Transfer
is permitted to occur, the undersigned party will have Beneficial Ownership of _________ shares of Common Stock after such transfer
becomes effective.

 

PLEASE TAKE FURTHER
NOTICE that the last four digits of the taxpayer identification number of the undersigned party are _______.

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to that certain Order (A) Approving Notification and Hearing Procedures for Certain Transfers
of Common Stock and (B) Granting Related Relief [Docket No. 106] (the “Order”), this declaration
(this “Declaration”) is being filed with the Court and served upon the Notice Parties (as defined in the Order).

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to the Order, the undersigned party acknowledges that it is prohibited from consummating the Proposed
Transfer unless and until the undersigned party complies with the Procedures set forth therein.

 

PLEASE TAKE FURTHER
NOTICE that the Debtors have 20 calendar days after receipt of this Declaration to object to the Proposed Transfer described
herein. If the Debtors file an objection, such Proposed Transfer will remain ineffective unless such objection is withdrawn by
the Debtors or such transaction is approved by a final and nonappealable order of the Court. If the Debtors do not object within
such 20–day period, then after expiration of such period the Proposed Transfer may proceed solely as set forth in this Declaration.

 

    2

     

    

 

PLEASE TAKE FURTHER
NOTICE that any further transactions contemplated by the undersigned party that may result in the undersigned party selling,
trading, or otherwise transferring Beneficial Ownership of additional shares of Common Stock will each require an additional notice
filed with the Court to be served in the same manner as this Declaration.

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to 28 U.S.C. § 1746, under penalties of perjury, the undersigned party hereby declares that he or
she has examined this Declaration and accompanying attachments (if any), and, to the best of his or her knowledge and belief, this
Declaration and any attachments hereto are true, correct, and complete.

 

	 	Respectfully submitted,
	 	(Name of Declarant)
	 	By: 	                   

	 	Name:	 

	 	Address:	                                                                   
	 	

	 	Telephone:	

	 	Facsimile: 	 

 

	Dated: _____________ __, 2020	 

	 	,	 	 
	 	 	 	 
	(City)	 	(State)	 

  

    3

     

    

 

Exhibit 1D

 

Notice of Entry of NOL Order

 

    

     

    

  

IN
THE UNITED STATES BANKRUPTCY COURT

for the Southern district of texas

houston
DIVISION

 

	 	)	 
	In re:	)	Chapter 11
	 	)	 
	FTS INTERNATIONAL, INC., et al.,1	)	Case No. 20-34622 (DRJ)
	 	)	 
	Debtors.	)	(Jointly Administered)
	 	)	 
	 	)	Re:  Docket No. 13

 

NOTICE
OF DISCLOSURE PROCEDURES APPLICABLE TO

CERTAIN HOLDERS OF COMMON STOCK AND DISCLOSURE

PROCEDURES
FOR TRANSFERS OF COMMON STOCK

 

TO: ALL ENTITIES (AS DEFINED BY SECTION 101(15)
OF THE BANKRUPTCY CODE) THAT MAY HOLD BENEFICIAL OWNERSHIP OF STOCK OF FTS INTERNATIONAL, INC. (THE “COMMON
STOCK”):

 

PLEASE TAKE NOTICE
that on September 22, 2020 (the “Petition Date”), the above-captioned debtors and debtors in possession
(collectively, the “Debtors”), filed petitions with the United States Bankruptcy Court for the Southern
District of Texas (the “Court”) under title 11 of the United States Code, 11 U.S.C. §§ 101–1532
(the “Bankruptcy Code”). Subject to certain exceptions, section 362 of the Bankruptcy Code operates
as a stay of any act to obtain possession of property of or from the Debtors’ estates or to exercise control over property
of or from the Debtors’ estates.

 

 

		1	The Debtors in these chapter 11 cases, along with the
last four digits of each Debtor’s federal tax identification number, are: FTS International, Inc. (0081); FTS International
Manufacturing, LLC (9132); and FTS International Services, LLC (7729). The location of Debtor FTS International, Inc.’s
principal place of business and the Debtors’ service address in these chapter 11 cases is 777 Main Street, Suite 2900, Fort
Worth, Texas 76102.

 

    

     

    

 

PLEASE TAKE FURTHER NOTICE that on the Petition Date,
the Debtors filed the Debtors’ Emergency Motion for Entry of an Order (A) Approving Notification and Hearing
Procedures for Certain Transfers of Common Stock and (B) Granting Related Relief [Docket No. 13].

 

PLEASE TAKE FURTHER NOTICE that on September 24,
2020, the Court entered the Order (A) Approving Notification and Hearing Procedures for Certain Transfers of Common
Stock and (B) Granting Related Relief [Docket No. 106] (the “Order”) approving procedures
for certain transfers of Common Stock, set forth in Exhibit 1 attached to the Order (the “Procedures”).2

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to the Order, a Substantial Shareholder may not consummate any purchase, sale, or other transfer
of Common Stock or Beneficial Ownership of Common Stock in violation of the Procedures, and any such transaction in violation of
the Procedures shall be null and void ab initio.

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to the Order, the Procedures shall apply to the holding and transfers of Common Stock or any Beneficial
Ownership therein by a Substantial Shareholder or someone who may become a Substantial Shareholder.

 

PLEASE TAKE FURTHER
NOTICE that upon the request of any entity, the proposed notice, solicitation, and claims agent for the Debtors, Epiq Corporate
Restructuring, LLC, will provide a copy of the Order and a form of each of the declarations required to be filed by the Procedures
in a reasonable period of time. Such declarations are also available via PACER on the Court’s website at https://ecf.txsb.uscourts.gov
for a fee, or by accessing the Debtors’ restructuring website at http://dm.epiq11.com/FTSI.

 

 

2       Capitalized
terms used but not otherwise defined herein have the meanings ascribed to them in the Order or the Motion, as applicable.

 

    2

     

    

 

PLEASE TAKE FURTHER
NOTICE that, pursuant to the Order, failure to follow the procedures set forth in the Order shall constitute a violation of,
among other things, the automatic stay provisions of section 362 of the Bankruptcy Code.

 

PLEASE TAKE FURTHER
NOTICE that nothing in the Order shall preclude any person desirous of acquiring any Common Stock from requesting relief from
the Order from this Court, subject to the Debtors’ rights to oppose such relief.

 

PLEASE TAKE FURTHER
NOTICE that other than to the extent that the Order expressly conditions or restricts trading in Common Stock, nothing in the
Order or in the Motion shall, or shall be deemed to, prejudice, impair, or otherwise alter or affect the rights of any holders
of Common Stock, including in connection with the treatment of any such stock under any chapter 11 plan or any applicable bankruptcy
court order.

 

PLEASE TAKE FURTHER
NOTICE that any prohibited purchase, sale, or other transfer of Common Stock, beneficial ownership thereof, or option with
respect thereto in violation of the Order is prohibited and shall be null and void ab initio and may be subject to additional
sanctions as this court may determine.

 

PLEASE TAKE FURTHER
NOTICE that the requirements set forth in the Order are in addition to the requirements of Bankruptcy Rule 3001(e) and
applicable law and do not excuse compliance therewith.

 

    3

     

    

   

	Houston, Texas	 	 
	September 24, 2020	 	 
	 	 	 
	/s/ Brian Schartz	 	 
	KIRKLAND & ELLIS LLP	 	WINSTON & STRAWN LLP
	KIRKLAND & ELLIS INTERNATIONAL LLP	 	Katherine A. Preston (TX Bar No. 2968884)
		 	800 Capitol Street, Suite 2400
	Brian Schartz, P.C. (TX Bar No. 24099361)	 	Houston, Texas 77002
	609 Main Street	 	Telephone:	(713) 651-2600
	Houston, Texas 77002	 	Facsimile:	(713) 651-2700
	Telephone:	(713) 836-3600	 	Email:	kpreston@winston.com
	Facsimile:	(713) 836-3601	 	 
	Email:	brian.schartz@kirkland.com	 	 
	 	 	- and -
	- and -	 	 
	 	 	Daniel J. McGuire (admitted pro hac vice)
	Joshua A. Sussberg, P.C. (admitted pro hac vice)	 	35 W Wacker Drive
	Emily E. Geier (admitted pro hac vice)	 	Chicago, IL 60601
	Alexander Nicas (admitted pro hac vice)	 	Telephone:	(312) 558-5600
	601 Lexington Avenue	 	Facsimile:	(312) 558-5700
	New York, New York 10022	 	Email:	dmcguire@winston.com
	Telephone:	(212) 446-4800	 	 
	Facsimile:	(212) 446-4900	 	Proposed Co-Counsel for the Debtors and Debtors in Possession
	Email:	jsussberg@kirkland.com	 	
	 	emily.geier@kirkland.com	 	 
	 	alexander.nicas@kirkland.com	 	 
	 	 	 
	Proposed Co-Counsel for the Debtors and Debtors in Possession

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