Document:

ese_Ex4_1(a)

		
			EXHIBIT 4.1(a)
		

		
			ESCO Technologies Inc.
		

		
			Description of Common Stock
		

		
			Registrant’s outstanding equity consists solely of shares of common stock having the typical characteristics of common stock of a Missouri public corporation, including:
		

		
			–     One vote per share on all matters to be voted on by the shareholders (however, the approval of certain matters requires a supermajority vote pursuant to Missouri law or as set forth in the Registrant’s Articles of Incorporation or Bylaws)
		

		
			–     The right to participate pro rata in such dividends as may be declared by the Board of Directors, subject to the preferential rights of preferred shares, if any (none are currently outstanding)
		

		
			–     The right to participate pro rata in any proceeds available upon liquidation of the Registrant, subject to the preferential rights of preferred shares, if any (none are currently outstanding)
		

		
			–     Shares carry no preemptive right to subscribe for additional issuances of securities
		

		
			–     Shares are not subject to involuntary redemption by the Registrant
		

		
			–     Cumulative voting in the election of directors is prohibited
		

		
			–     There are no restrictions on alienability (however, certain holders may be personally subject to restrictions imposed by contract or applicable securities laws)
		

		
			–     There are no provisions discriminating against holders or prospective holders who own or would own a substantial amount of securities.ese_Ex10_5

		
			EXHIBIT 10.5
		

		
			Esco Technologies Inc.
		

		
			Directors’ Extended Compensation Plan
		

		
			Restated to Include All Amendments Through August 7, 2013
		

		
			(Current As of November 2019)
		

		
			I.       Purpose
		

		
			The purpose of the ESCO Technologies Inc. Directors’ Extended Compensation Plan (the “Plan”) is to provide extended compensation for non-employee directors of ESCO Technologies Inc. (the “Company”) following their retirement from the Board of Directors (the “Board”) under the terms and conditions set forth hereinafter. The Board has determined that the establishment of such a benefit will be useful in its efforts to retain and to attract highly qualified individuals to serve on the Board.
		

		
			II.      Eligibility
		

		
			A director, in order to be eligible for benefits under the Plan, must (a) retire as a non-employee director after at least five (5) years of service as a non-employee director of the Company, or (b) retire as a non-employee director pursuant to any provisions prohibiting re-election to the Board. Service as a non-employee director shall mean such service while the director is not an employee of the Company. No director joining the Board as an outside director for the first time on or after April 1, 2001 shall be eligible to participate in the Plan.
		

		
			III.    Benefits
		

		
			1.     The annual benefit under the Plan shall be a percentage of the annual cash retainer of $20,000 being paid to directors as of April 1, 2001, based upon the number of the director’s complete years of service at the time of retirement in accordance with the following table:
		

		
			 
		

			
					
						Complete 

					
					
						Percentage of Annual

				
	
					
						Years of Service

					
					
						Cash Retainer Payable

				
	
					
						Less than 5

					
					
						0%

				
	
					
						5

					
					
						50%

				
	
					
						6

					
					
						60%

				
	
					
						7

					
					
						70%

				
	
					
						8

					
					
						80%

				
	
					
						9

					
					
						90%

				
	
					
						10 or more

					
					
						100%

				

		
			 
		

		
			2.     Notwithstanding paragraph 1, if retirement is pursuant to a provision prohibiting re-election to the Board and the director has less than five (5) complete years of service, the annual benefit shall be 50% of the annual cash retainer.
		

		
			3.     The benefit shall be paid in quarterly installments commencing with the first quarter following the later of (a) retirement, or (b) the director’s 65th birthday, and shall continue for life. Notwithstanding the foregoing the director may elect, upon such terms and conditions as the Human Resources and Compensation Committee of the Board may determine, to receive the actuarial equivalent of the entire benefit in a single lump cash sum. Any election to receive the actuarial equivalent of the entire benefit in a lump sum, or revocation of such election, that is made by a director whose annual benefit under Paragraph 1 of Section III has increased since December 31, 2004 (i) shall, if made before January 1, 2008, apply only to amounts that would not otherwise be payable in 2007 and may not cause an amount to be paid in 2007 that would not otherwise be payable in 2007, or (ii) shall, if made after December 31, 2007, be made at least one year prior to the date payment of a lump sum or quarterly installments would otherwise be made or commence, and payment or commencement of such annual benefit shall (except in the case of the death of the director) be deferred for a period of five years from the date such payment would otherwise have been made or commenced.
		

		
			4.     If a retired director dies leaving a surviving spouse, 50% of the annual benefit payable to the director shall continue to be paid to the surviving spouse for the life of such spouse.  If a director’s separation from service (as interpreted in accordance with the requirements of Code Section 409A) is on account of death, the actuarial equivalent of 50% of the director’s entire benefit, determined as if the director retired on the day immediately prior to the date of the director’s death, shall be paid to the director’s surviving spouse in a lump sum in the first quarter following the date of the 

		 

director’s death (or, at the sole discretion of the Company, on an earlier date that is no more than 30 days prior to the first day of such quarter).
		

		
			IV.    Miscellaneous
		

		
			1.     The Human Resources and Compensation Committee of the Board shall have plenary authority to interpret and to apply the terms of the Plan and to take such additional action consistent with the purpose of the Plan as is, in its sole judgment, just and equitable. Such Committee shall have the right to amend or terminate the Plan at any time, but no such action shall retroactively reduce the benefits already accrued.
		

		
			2.     Retirement as a director shall be governed by the bylaws of the Company, as in effect from time to time.
		

		
			3.     Each director receiving benefits under the Plan, and in consideration therefor, shall be expected to be available upon reasonable request to consult with the Chairman and Chief Executive Officer and with the Board on a reasonable basis and to an extent not inconsistent with the director’s retirement.
		

		
			4.     Eligibility under the terms of the Plan shall in no way affect other benefits from the Company to which a non-employee director may be entitled.
		

		
			5.     The benefits contemplated hereunder shall not be funded by trust or otherwise, but shall be treated as a general expense of the Company. The right of any person to benefits hereunder shall be no greater than that of an unsecured general creditor of the Company. Benefits hereunder may not be assigned or alienated.
		

		
			6.     The Plan shall take effect October 11, 1993 and shall apply, in accordance with its terms and conditions, to any retirement as a non-employee director of the Company taking place thereafter.
		

		
			7.     The Plan shall inure to the benefit of and be enforceable by the directors and their legal representatives and shall be binding upon the Company and its successors and assigns. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, sale of assets or otherwise) to assume and expressly agree to perform the duties of the Company under the Plan in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. The Plan shall be construed and interpreted in accordance with the laws of the State of Missouri without regard to any principles of conflict of laws. Any litigation in respect of the Plan shall be brought in the Federal or State Courts of Missouri.Exhibit

Exhibit 4.3

DESCRIPTION OF CAPITAL STOCK

The following summary of the terms of our capital stock is based upon our amended and restated certificate of incorporation and our amended and our restated bylaws currently in effect and applicable provisions of Delaware law. The summary is not complete, and is qualified by reference to our amended and restated certificate of incorporation and our amended and our restated bylaws, which are filed as exhibits to this Annual Report on Form 10-K and are incorporated by reference herein. We encourage you to read these documents and the applicable portion of the Delaware General Corporation Law, as amended (the “DGCL”), carefully.

Authorized Capital Stock 

Our authorized capital stock consists of 550,000,000 shares of common stock, par value $0.01 per share, and 55,000,000 shares of preferred stock, par value $0.01 per share. 

Common Stock

We may issue additional authorized shares of our common stock as authorized by our Board of Directors from time to time, without stockholder approval, except as may be required by applicable stock exchange requirements.  The rights, preferences and privileges of holders of our common stock are subject to the rights of the holders of shares of any series of preferred stock that the Company may designate and issue in the future.

Voting Rights 

The holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An election of directors by our stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to vote on the election. 

Dividends and Other Distribution; Liquidation Rights 

Holders of our common stock are entitled to receive proportionately any dividends as may be declared by our Board of Directors, subject to any preferential dividend rights of any series of preferred stock that is outstanding at the time of the dividend.

In the event of the Company’s liquidation or dissolution, the holders of our common stock are entitled to receive proportionately the Company’s net assets available for distribution to stockholders after payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock.

Fully Paid and Nonassessable 

The outstanding shares of our common stock are duly authorized, fully paid and nonassessable. 

No Preemptive, Conversion or Subscription Rights; No Redemption or Sinking Fund Provisions 

Holders of our common stock have no preemptive or conversion rights, and there are no sinking fund or redemption provisions relating to any shares of our common stock. In addition, holders of our common stock do not have any subscription or other similar rights to purchase shares of any class of our capital stock.

Registration Rights for Certain Stockholders

In connection with our emergence from bankruptcy, we entered into a registration rights agreement with certain of our creditors and their affiliates who became common stockholders upon our emergence from bankruptcy, pursuant to 

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which we provided them certain “demand” registration rights and customary “piggyback” registration rights. The registration rights agreement also provides that we will pay certain expenses relating to such registrations and indemnify the registration rights holders against (or make contributions in respect of) certain liabilities which may arise under the Securities Act of 1933, as amended (see Exhibit 4.2 to the Company's Registration Statement on Form 10 filed on December 15, 2017.)

Stock Exchange Listing 

Our common stock is listed on the NYSE under the symbol “AVYA.” 

Transfer Agent and Registrar 

The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company LLC. The transfer agent’s address is 6201 15th Avenue, Brooklyn, New York 11219, and its telephone number is 1-800-937-5449. 

Preferred Stock

Pursuant to our amended and restated certificate of incorporation, our Board of Directors has the authority, without further action by our stockholders, to issue shares of preferred stock from time to time on terms it may determine, to divide shares of preferred stock into one or more series and to fix the designations, preferences, privileges and restrictions of preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, sinking fund terms and the number of shares constituting any series or the designation of any series to the fullest extent permitted by the DGCL. 

It is not possible to state the actual effect of the issuance of any shares of preferred stock on the rights of holders of our common stock until our Board of Directors determines the specific rights associated with that preferred stock. The effects of issuing preferred stock could include one or more of the following: 
• decreasing the amount of earnings and assets available for distribution to holders of our common stock; 
• restricting dividends on our common stock; 
• diluting the voting power of our common stock; 
• impairing the liquidation rights of our common stock; or 
• delaying, deferring or preventing a change in control of the Company or our management.

Series A Convertible Preferred Stock

On October 30, 2019, we filed a Certificate of Designations that authorizes us to issue shares of Series A Convertible Preferred Shares (the “Series A Preferred Stock”) in aggregate principal amount of up to $500,000,000 (see Exhibit 3.1 to the Company's Current Report on Form 8-K filed on October 31, 2019). On October 31, 2019, we issued 125,000 shares of Series A Preferred Stock to RingCentral, Inc. ("RingCentral") pursuant to that certain Investment Agreement, dated as of October 3, 2019, by and between Avaya Holdings Corp. and RingCentral (see Exhibit 10.1 to the Company's Current Report on Form 8-K filed on October 3, 2019). The Series A Preferred Stock is convertible into shares of our common stock at an initial conversion price of $16.00 per share, subject to adjustment as set forth in the Certificate of Designations. 

Voting Rights; Director 

The holders of our Series A Preferred Stock are entitled to vote with holders of our common stock as a single class on any matter on which holders of our common stock are entitled to vote (including the election of directors).  Each holder of our Series A Preferred Stock is entitled to one vote for each share of our common stock that would be issuable upon conversion of such Series A Preferred Stock on the record date for determining stockholders entitled to vote, provided, however, that prior to receipt of an approval by all of our stockholders to permit conversion of shares of Series A Preferred Stock into more shares than permitted under the New York Stock Exchange Listed Company Manual Rule 312.03, the aggregate voting rights of holders of our Series A Preferred Stock shall be limited to the voting power equivalent to no more than 19.9% of our outstanding common stock.

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In addition, until such time when RingCentral and its affiliates hold or beneficially own less than 4,759,339 shares of our common stock (on an as-converted basis), RingCentral has the right to nominate one person for election to our Board of Directors and our Board of Directors will recommend that our stockholders vote in favor of such nominee.

Dividends and Other Distribution; Liquidation Rights 

Holders of our Series A Preferred Stock are entitled to receive dividends, in preference and priority to holders of our common stock or other series of Company stock, which shall accrue on a daily basis at the rate of 3% per annum of the stated value of the Series A Preferred Stock.  The stated value of the Series A Preferred Stock is initially $1,000 per share and it will be increased by the sum of any dividends on such shares which are paid in kind.  These dividends shall be cumulative, shall compound quarterly and shall be paid quarterly in arrears.  We have the option to pay these dividends in the form of cash or in kind by an increase in the stated value of the Series A Preferred Stock, or any combination thereof. 

Our Series A Preferred Stock shall participate in any dividends we pay on our common stock, equal to the dividend which such holders would have received if their Series A Preferred Stock had been converted into common stock on the date such common stock dividend was determined.

In the event of the Company’s liquidation or dissolution, the holders of our Series A Preferred Stock are entitled to receive, before any distribution is made to holders of our common stock, an amount equal to the liquidation preference (which equals the stated value referenced above plus any accrued and unpaid dividends) for each share of Series A Preferred Stock held.

Conversion Rights

Shares of Series A Preferred Stock are convertible at any time at the holder’s option into shares of our common stock as determined by the conversion rate, which is equal to the stated value divided by the conversion price, each as in effect on the conversion date.  The current conversion price is $16.00 per share and is subject to adjustment as set forth in the Certificate of Designations, provided, however, that prior to receipt of an approval by our stockholders as required under New York Stock Exchange Listed Company Manual Rule 312.03, under no circumstance may shares of the Series A Preferred Stock be converted into shares of common stock representing more than 19.9% of the then outstanding common stock on the date the Series A Preferred Stock was issued.

Redemption Rights

We may redeem shares of Series A Preferred Stock after the termination of that certain Framework Agreement, dated as of October 3, 2019, by and between Avaya Inc. and RingCentral, described in the Company’s Current Report on Form 8-K filed on October 3, 2019 (the “Framework Agreement”).  The holders of Series A Preferred Stock may redeem shares of Series A Preferred Stock after the termination of the Framework Agreement or upon the occurrence of certain events as set forth in the Certificate of Designations. 

Transfer Restrictions and Registration Rights 

RingCentral is not able to transfer any Series A Preferred Stock or any common stock issuable upon conversion of such preferred stock until April 30, 2021. In addition, RingCentral is not able to, at any time, except in an open market transaction, transfer Series A Preferred Stock or any common stock issuable upon conversion of such preferred stock to (i) any competitor of ours (as agreed by RingCentral and us), (ii) any activist who, among other things, has tried in the prior three years to be elected to, or remove a director from, our Board of Directors or (iii) any person who would hold 7.5% or more of our outstanding common stock (on an as-converted basis) after giving effect to such transfer.  Furthermore, in connection with our sale of Series A Preferred Stock to RingCentral, we granted RingCentral certain “demand” registration rights and customary “piggyback” registration rights for shares of our common stock.

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Fully Paid and Nonassessable 

The outstanding shares of our Series A Preferred Stock are duly authorized, fully paid and nonassessable. 

Anti-takeover Effects of the Company’s Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws

Our amended and restated certificate of incorporation and our amended and restated bylaws contain provisions that may delay, defer or discourage another party from acquiring control of the Company.  We expect that these provisions, which are summarized below, will discourage coercive takeover practices or inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of the Company to first negotiate with our Board of Directors, which we believe may result in an improvement of the terms of any such acquisition in favor of our stockholders. However, they also give our Board of Directors the power to discourage acquisitions that some stockholders may favor.

Advance Notice Requirements for Stockholder Proposals

Our amended and restated bylaws require advance notice procedures for stockholder proposals to be brought before an annual meeting or special meeting of the stockholders, including the nomination of directors. Stockholders at an annual meeting or special meeting may only consider the proposals specified in the notice of meeting or brought before the meeting by or at the direction of the Board of Directors, or by a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has delivered a timely written notice in proper form to the Company’s secretary, of the stockholder’s intention to bring such business before the meeting.

Amendment to Certificate of Incorporation and Bylaws

The DGCL provides generally that the affirmative vote of a majority of the outstanding stock entitled to vote on amendments to a corporation’s certificate of incorporation or bylaws is required to approve such amendment, unless a corporation’s certificate of incorporation or bylaws, as the case may be, requires a greater percentage. Our amended and restated bylaws may be amended, altered, or repealed by a majority vote of our Board of Directors.

Delaware Anti-Takeover Statute

Section 203 of the DGCL provides that if a person acquires 15% or more of the voting stock of a Delaware corporation, such person becomes an “interested stockholder” and may not engage in certain “business combinations” with the corporation for a period of three years from the time such person acquired 15% or more of the corporation’s voting stock, unless: (1) the board of directors approves the acquisition of stock or the merger transaction before the time that the person becomes an interested stockholder, (2) the interested stockholder owns at least 85% of the outstanding voting stock of the corporation at the time the merger transaction commences (excluding voting stock owned by directors who are also officers and certain employee stock plans), or (3) the merger transaction is approved by the board of directors and by the affirmative vote at a meeting, not by written consent, of stockholders of  2⁄3 of the holders of the outstanding voting stock which is not owned by the interested stockholder. A Delaware corporation may elect in its certificate of incorporation or bylaws not to be governed by this particular Delaware law.

Under our amended and restated certificate of incorporation, the Company opted out of Section 203 of the DGCL, and therefore is not subject to Section 203.

Limitations on Liability and Indemnification of Officers and Directors

Our amended and restated certificate of incorporation limits the liability of our directors to the fullest extent permitted by the DGCL, and our amended and restated bylaws provide that the Company indemnify them to the fullest extent permitted by such law. The rights to indemnification and advancement of expenses provided by our amended and restated bylaws are not exclusive of any other rights to which the person seeking indemnification or expense advancement may be entitled.  As permitted by our amended and restated bylaws, we have also obtained insurance policies insuring 

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our directors and officers against certain liabilities which they may incur in such capacities.  Furthermore, we have entered into indemnification agreements with our current directors and executive officers and expect to enter into a similar agreement with any new directors or executive officers.
 
Exclusive Jurisdiction of Certain Actions

Our amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that derivative actions brought in the name of the Company, actions against directors, officers and employees for breach of fiduciary duty and other similar actions may be brought only in the Court of Chancery in the State of Delaware. Although we believe this provision benefits the Company by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies, the provision may have the effect of discouraging lawsuits against the Company’s directors and officers.

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