Document:

arcb_EX_10_36

		

			Exhibit 10.36

		

		
			Third Amendment to 
Second Amended and Restated Receivables Sale Agreement,
Third Amendment to
Second Amended and Restated Receivables Loan Agreement
		

		
			This Third Amendment to Second Amended and Restated Receivables Sale Agreement, Third Amendment to Second Amended and Restated Receivables Loan Agreement, dated as of December 30, 2019 (the “Amendment”) is by and among ABF Freight System, Inc., an Arkansas corporation (“ABF”), ArcBest Logistics, Inc.  (f/k/a ABF Logistics, Inc.), an Arkansas corporation (“Logistics”), Panther II Transportation, Inc., an Arkansas corporation (“Panther”), ArcBest Enterprise Solutions, Inc., an Arkansas corporation (“AES”), ArcBest International, Inc. (f/k/a Integres Global Logistics, Inc. and successor by merger to ArcBest International, Inc. (f/k/a ABF Global Supply Chain, Inc.), an Arkansas corporation), a Delaware corporation (“International”) and ArcBest II, Inc., an Arkansas corporation (“ArcBest II,” together with ABF, Logistics, Panther, AES and International, the “Existing Originators”), ArcBest Dedicated, LLC, a Nevada limited liability company (“Dedicated”), ArcBest Funding LLC (f/k/a ABF Freight Funding LLC),  a Delaware limited liability company, as Buyer under the Receivables Sale Agreement (as defined below) (in such capacity, the “Buyer”) and as Borrower under the Loan Agreement (as defined below) (in such capacity, the “Borrower”), ArcBest Corporation (f/k/a Arkansas Best Corporation), a Delaware corporation, as Servicer (the “Servicer”), Regions Bank, as a lender (“Regions”), and PNC Bank, National Association, as a lender (in such capacity and together with Regions, the “Lenders”), letter of credit issuer (in such capacity, the “LC Issuer”) and as agent and administrator for the lender and its assigns and the letter of credit issuer and its assigns under the Loan Agreement (in such capacity, the “Agent”).
		

		
			W  i t n e s s e t h :
		

		
			Whereas, the Buyer and the Existing Originators previously entered into and are currently party to that certain Second Amended and Restated Receivables Sale Agreement dated as of February 1, 2015 (as amended and supplemented through the date hereof, the “Receivables Sale Agreement”);
		

		
			Whereas, the Borrower, the Servicer, the Lenders, the LC Issuer and the Agent are parties to that certain Second Amended and Restated Receivables Loan Agreement dated as of March 20, 2017 (as amended and supplemented through the date hereof, the “Loan Agreement”)
		

		
			Whereas, the Buyer desires to add Dedicated as Originator (the “New Originator”) under the Receivables Sale Agreement;
		

		
			Whereas, pursuant to Section 2.5 of the Receivables Sale Agreement, the Servicer has provided the Agent and the Buyer with at least thirty days’ prior written notice of the proposed addition of the New Originator as an Originator to the Receivables Sale Agreement;
		

		
			Whereas, the Existing Originators, the New Originator and the Buyer agree to amend the Receivables Sale Agreement pursuant to the terms and conditions set forth herein;
		

		
			

		 

		

			arcb_EX_10_36

		

		

			1988096

		

		

		
			Whereas, the Borrower, the Servicer, the LC Issuer, the Lenders and the Agent agree to amend the Loan Agreement and the Transaction Documents pursuant to the terms and conditions set forth herein;
		

		
			Now, Therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
		

		
			Section 1.Defined Terms.  Unless otherwise amended by the terms of this Amendment, terms used in this Amendment shall have the meanings assigned in the Loan Agreement.
		

		
			Section 2.Amendment to Receivables Sale Agreement.  As of the Effective Date (as defined below), subject to the satisfaction of the conditions precedent set forth in Section 6 below, the Receivables Sale Agreement shall be and hereby is amended as follows:
		

		
			2.1.Exhibit C of the Receivables Sale Agreement is hereby amended and restated in its entirety to read as set forth in Exhibit C attached hereto and made a part hereof.
		

		
			Section 3.Amendment to Loan Agreement.  As of the Effective Date, subject to the satisfaction of the conditions precedent set forth in Section 6 below, the Loan Agreement shall be and hereby is amended as follows:
		

		
			3.1.The defined term “Originator” appearing in Exhibit I to the Loan Agreement is hereby amended and restated in its entirety and as so amended and restated shall read as follows:
		

		
			“Originator” Each of ABF, ArcBest Logistics, Inc. (f/k/a ABF Logistics, Inc.), an Arkansas corporation; ArcBest International, Inc. (f/k/a Integres Global Logistics, Inc. and successor by merger to ArcBest International, Inc. (f/k/a ABF Global Supply Chain, Inc.), an Arkansas corporation), a Delaware corporation; Panther II Transportation, Inc., an Arkansas corporation; ArcBest Enterprise Solutions, Inc., an Arkansas corporation; ArcBest II, Inc., an Arkansas corporation; ArcBest Dedicated, LLC, a Nevada limited liability company and each Originator that becomes a party to the Receivables Sale Agreement in accordance with Section 2.5 thereof.
		

		
			Section 4.Joinder of New Originator.  The New Originator seeks to become an Originator under the Receivables Sale Agreement and, in connection therewith, hereby agrees as follows:
		

		
			(i)The New Originator hereby agrees that it shall be bound by all of the terms, conditions and provisions of, and shall be deemed to be a party to (as if it were an original signatory to), the Receivables Sale Agreement and each of the other relevant Transaction Documents. From and after the later of the date hereof and the date that the New Originator 

		 

		

			-2-

		

has complied with all of the requirements of Section 2.5 of the Receivables Sale Agreement (other than the delivery of a Joinder Agreement), the New Originator shall be an Originator for all purposes of the Receivables Sale Agreement and all other Transaction Documents.  For the avoidance of doubt, only Receivables originated by the New Originator on or after December 30, 2019 will be sold to Buyer.  All Receivables originated prior thereto shall remain the property of the New Originator.  The New Originator hereby acknowledges that it has received copies of the Receivables Sale Agreement and the other Transaction Documents.
		

		
			(ii)The New Originator hereby makes all of the representations and warranties set forth in Section 4 (to the extent applicable) of the Receivables Sale Agreement as of the date hereof (unless such representations or warranties relate to an earlier date, in which case as of such earlier date), as if such representations and warranties were fully set forth herein.  The New Originator represents and warrants that its location (for purposes of the UCC) is Nevada and the offices where it keeps all its records concerning the Receivables and its address for notices is:
		

		
			8401 McClure Drive
P.O. Box 10048
		

		
			Fort Smith, Arkansas  72917-0048
		

		
			Attention:Don Pearson
		

		
			Phone:479-785-6136 
		

		
			Fax:479-785-6136
		

		
			(iii)Each reference to the term “Originator” and “Originators” under the Receivables Sale Agreement and each Transaction Document shall be deemed to include the New Originator. 
		

		
			Section 5.Acknowledgment of International Merger.   Pursuant to a Certificate of Merger filed with the Delaware Secretary of State on March 1, 2018, ArcBest International, Inc. (f/k/a ABF Global Supply Chain, Inc.), an Arkansas corporation, merged with and into ArcBest International, Inc. (f/k/a Integres Global Logistics, Inc.), a Delaware corporation (the “International Merger”).  Each of the parties hereto acknowledges and agrees that notwithstanding the International Merger, International continued as and is an Originator under the Receivables Sale Agreement.
		

		
			Section 6.Conditions Precedent.  This Amendment shall be effective as of December 30, 2019 (the “Effective Date”), subject to the satisfaction of all of the following conditions precedent:
		

		
			6.1.The parties hereto shall have executed and delivered this Amendment.
		

		
			6.2.The Buyer shall deliver to the New Originator a Subordinated Note in favor of the New Originator and the Agent shall have received a copy of such Subordinated Note.
		

		
			

		 

		

			-3-

		

		

		
			6.3.Each of International and the New Originator shall deliver to the Buyer and the Agent each of the following:
		

		
			(i)a certificate of an Authorized Officer of International and the New Originator, as applicable, together with incumbency certificate, organizational documents and resolutions;
		

		
			(ii)UCC, tax and judgment lien searches against International and the New Originator; and
		

		
			(iii)UCC financing statements naming the New Originator as seller/debtor, Buyer as buyer/assignor and Agent as secured party/total assignee.
		

		
			6.4.The Agent shall have received the following opinions of legal counsel to Seller, International and the New Originator in form and substance reasonably acceptable to the Agent:
		

		
			(i)in-house counsel opinion regarding general corporate matters;
		

		
			(ii)opinion regarding certain UCC matters;
		

		
			(iii)opinion regarding organizational and enforceability matters; and
		

		
			(iv)opinion regarding certain true sale and non-consolidation matters.
		

		
			6.5.The Agent shall have received evidence of merger of ArcBest International, Inc. (f/k/a ABF Global Supply Chain, Inc.), an Arkansas corporation, with and into International.
		

		
			6.6.Each representation and warranty of the New Originator, the Existing Originators, the Servicer and the Buyer contained herein (after giving effect to this Amendment) shall be true and correct.
		

		
			6.7.No (i) Event of Bankruptcy with respect to the Seller or any Originator, (ii) Servicer Termination Event, (iii) Unmatured Servicer Termination Event, (iv) Amortization Event, or (v) Unmatured Amortization Event, shall have occurred and be continuing. 
		

		
			6.8.The Buyer shall have received such other agreements, instruments, documents, certificates, and opinions as the Buyer may reasonably request.
		

		
			Section 7.Representations of the New Originator, the Existing Originators, the Buyer and the Servicer.  Each of the New Originator, the Existing Originators, the Buyer and the Servicer hereby represent and warrant to the parties hereto that as of the date hereof each of the representations and warranties contained in the Receivables Sale Agreement, the Loan Agreement and any other Transaction Document to which such Person is a party is true and correct as of the 

		 

		

			-4-

		

date hereof and after giving effect to this Amendment (except to the extent that such representations and warranties expressly refer to an earlier date, in which case they are true and correct as of such earlier date).
		

		
			Section 8.Reaffirmation and Ratification of the Performance Guaranty.  The agreements and obligations of ArcBest Corporation (the “Guarantor”) under the Performance Guaranty are hereby reaffirmed, ratified, brought forward, renewed and extended.  The Guarantor hereby ratifies, affirms, reaffirms, acknowledges, and agrees that the Performance Guaranty represents the valid, binding and enforceable obligation of the Guarantor.  The Guarantor hereby agrees that the Performance Guaranty is and shall remain in full force and effect in favor of the Agent for the benefit of the Secured Parties under the Performance Guaranty, until all obligations owing to the Secured Parties thereunder shall have been satisfied in accordance with its terms.
		

		
			Section 9.Agreement in Full Force and Effect/Effectiveness of Amendment.  Except as expressly set forth herein, all terms and conditions of the Loan Agreement, the Receivables Sale Agreement, and each other Transaction Document, as amended, shall remain in full force and effect.  This Amendment shall be effective as of the date first set forth above.
		

		
			Section 10.Execution in Counterparts, Effectiveness.  This Amendment may be executed by the parties hereto in several counterparts, each of which shall be executed by the parties hereto and be deemed an original and all of which shall constitute together but one and the same agreement.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic means shall be effective as delivery of a manually executed counterpart of this Amendment.
		

		
			Section 11.Governing Law.  This Amendment shall be construed in accordance with the laws of the State of New York, without reference to conflict of law principles, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with the laws of the State of New York.
		

		
			 
		

		
			

		 

		

			-5-

		

		

			 

		

		

		
			In Witness Whereof, the parties hereto have caused this Third Amendment to Second Amended and Restated Receivables Sale Agreement, Third Amendment to Second Amended and Restated Receivables Loan Agreement to be executed and delivered by their duly authorized officers as of the date hereof.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ArcBest Funding LLC, as Borrower

				
	
					
						 

					
					
						By:  ArcBest Corporation, its sole member

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ArcBest Corporation, as Servicer,

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President, General Counsel & Corporate Secretary

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ABF Freight System, Inc., as an Originator

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ArcBest Logistics, Inc., as an Originator

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President, General Counsel & Corporate Secretary

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Panther II Transportation, Inc., as an Originator

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Assistant Secretary

				

		
			
		

		

		 

		

			Signature Page to Third Amendment to Second Amended and Restated Receivables Sale Agreement, Third Amendment to Second Amended and Restated Receivables Loan Agreement

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ArcBest Enterprise Solutions, Inc., as Originator

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ArcBest II, Inc., as Originator

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President, General Counsel & Corporate Secretary

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ArcBest INTERNATIONAL, INC., as Originator

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ArcBest DEDICATED, LLC., as New Originator

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Solely for the purpose of Section 8:

				
	
					
						 

					
					
						ArcBest CORPORATION, as Guarantor

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael R. Johns

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Vice President, General Counsel & Corporate Secretary

				

		
			 
		

		
			
		

		

		 

		

			Signature Page to Third Amendment to Second Amended and Restated Receivables Sale Agreement, Third Amendment to Second Amended and Restated Receivables Loan Agreement

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PNC Bank, National Association, as a  Lender, the LC Issuer, and as the Agent

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Michael Brown

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael Brown

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Senior Vice President

				

		
			 
		

		
			
		

		

		 

		

			Signature Page to Third Amendment to Second Amended and Restated Receivables Sale Agreement, Third Amendment to Second Amended and Restated Receivables Loan Agreement

		

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						REGIONS  BANK, as a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By

					
					
						/s/ Cecil Noble

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Name: 

					
					
						Cecil Noble

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:

					
					
						Managing Director

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			Signature Page to Third Amendment to Second Amended and Restated Receivables Sale Agreement, Third Amendment to Second Amended and Restated Receivables Loan Agreement

		

		

			 

		

		

		
			EXHIBIT C
		

		
			 
		

		
			TRADE NAMES; FORMER NAMES
		

		
			 
		

		
			ARCBEST LOGISTICS, INC.
		

		
			 
		

		
			Former names:
		

		
			ABF Logistics, Inc.
		

		
			 
		

		
			Trade names:
		

		
			ABF Multimodal, Inc. - current
		

		
			ABF Supply Chain Solutions, Inc. –  cancelled, no longer used
		

		
			Bear Transportation Services – cancelled, no longer used
		

		
			ABF Logistics - current
		

		
			 
		

		
			ARCBEST INTERNATIONAL, INC.
		

		
			 
		

		
			Former names:
		

		
			Integris Global Logistics, Inc.
		

		
			 
		

		
			Trade names (current):
		

		
			Integris Global Logistics
		

		
			 
		

		
			ArcBest Enterprise Solutions, Inc.
		

		
			 
		

		
			Former names:
		

		
			ArcBest Enterprise Customer Solutions, Inc.
		

		
			ArcBest Contract Logistics, LLC
		

		
			 
		

		
			Trade names:
		

		
			None
		

		
			 
		

		
			PANTHER II TRANSPORTATION, INC.
		

		
			 
		

		
			Former names:
		

		
			None
		

		
			 
		

		
			Trade names:
		

		
			Panther Premium Logistics, Inc.
		

		
			Panther Premium Logistics
		

		
			Panther Expedited Services, Inc.
		

		
			Panther International – no longer used
		

		
			 
		

		
			

		 

		

			-1-

		

		

			 

		

		

		
			ARCBEST II, INC.
		

		
			 
		

		
			Former names:
		

		
			None
		

		
			 
		

		
			Trade names (current):
		

		
			ArcBest
		

		
			 
		

		
			ARCBEST DEDICATED, LLC
		

		
			 
		

		
			Former names:
		

		
			Logistics & Distribution Services, LLC
		

		
			 
		

		
			Trade names (current):
		

		
			Logistics & Distribution Services
		

		
			 
		

		
			 
		

		 

		

			-2-inst-ex42_177.htm

Exhibit 4.2

 

DESCRIPTION OF SECURITIES 

General 

Our certificate of incorporation authorizes us to issue up to 210,000,000 shares of capital stock, all with a par value of $0.0001 per share, of which: 

 

				
	
 
	
•
	
 
	
200,000,000 shares are designated as common stock; and 

 

				
	
 
	
•
	
 
	
10,000,000 shares are designated as preferred stock. 

The following summary description of our securities is based on the provisions of our certificate of incorporation, our bylaws, and the applicable provisions of the General Corporate Law of the State of Delaware, or DGCL. The information may not be complete in all respects and is qualified entirely by reference to our certificate of incorporation, our bylaws and the DGCL. Our certificate of incorporation and our bylaws are filed as exhibits to the Annual Report on Form 10-K to which this Description of Securities is an exhibit.

Common Stock 

Voting Rights 

Each holder of common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders, except as otherwise expressly provided in our amended and restated certificate of incorporation or required by applicable law. Cumulative voting for the election of directors is not provided for in our amended and restated certificate of incorporation, which means that the holders of a majority of the shares of common stock can elect all of the directors then standing for election. 

Dividends and Distributions 

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of outstanding shares of common stock are entitled to receive dividends out of funds legally available at the times and in the amounts that our board of directors may determine. 

Liquidation Rights 

In the event of our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of common stock and any participating preferred stock outstanding at that time after payment of liquidation preferences, on any outstanding shares of preferred stock and payment of other claims of creditors. 

The rights, preferences, and privileges of holders of common stock are subject to, and may be adversely affected by, the rights of holders of shares of any series of preferred stock that we may designate and issue in the future. 

Preemptive or Similar Rights 

Our common stock is not entitled to preemptive rights and is not subject to conversion or redemption. 

Fully Paid and Nonassessable

All of our outstanding shares of common stock are fully paid and nonassessable.

Preferred Stock 

Under our certificate of incorporation, our board of directors may, without further action by our stockholders, fix the rights, preferences, privileges and restrictions of up to an aggregate of 10,000,000 shares of preferred stock in one or more series and authorize their issuance. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of 

Exhibit 4.2

 

shares constituting any series or the designation of such series, any or all of which may be greater than the rights of our common stock. The issuance of our preferred stock could adversely affect the voting power of holders of our common stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change of control or other corporate action. As of the date of the Annual Report on Form 10-K to which this Description of Securities is an exhibit, no shares of preferred stock are outstanding. 

 

Anti-Takeover Provisions 

Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws 

Among other things, our amended and restated certificate of incorporation and amended and restated bylaws: 

 

				
	
 
	
•
	
 
	
permit our board of directors to issue up to 10,000,000 shares of preferred stock, with any rights, preferences and privileges as they may designate, including the right to approve an acquisition or other change of control; 

 

				
	
 
	
•
	
 
	
provide that the authorized number of directors may be changed only by resolution of our board of directors; 

 

				
	
 
	
•
	
 
	
provide that, subject to the rights of any series of preferred stock to elect directors, directors may be removed with or without cause, by the holders of at least 66 2/3% of all of our then-outstanding shares of the capital stock entitled to vote generally at an election of directors; 

 

				
	
 
	
•
	
 
	
provide that all vacancies, including newly created directorships, may, except as otherwise required by law, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum; 

 

				
	
 
	
•
	
 
	
require that any action to be taken by our stockholders must be effected at a duly called annual or special meeting of stockholders and not be taken by written consent or electronic transmission; 

 

				
	
 
	
•
	
 
	
provide that stockholders seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide advance notice in writing, and also specify requirements as to the form and content of a stockholder’s notice; 

 

				
	
 
	
•
	
 
	
provide that special meetings of our stockholders may be called only by the chairperson of our board of directors, our chief executive officer or by our board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors; and 

 

				
	
 
	
•
	
 
	
not provide for cumulative voting rights, therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose. 

The amendment of any of these provisions would require approval by the holders of at least 66 2/3% of all of our then-outstanding capital stock entitled to vote generally in the election of directors. 

The combination of these provisions will make it more difficult for our existing stockholders to replace our board of directors as well as for another party to obtain control of us by replacing our board of directors. Because our board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. In addition, the authorization of undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change our control. 

These provisions are intended to enhance the likelihood of continued stability in the composition of our board of directors and its policies and to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to reduce our vulnerability to hostile takeovers and to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and may have the effect of delaying changes in our control or management. As a consequence, these provisions may also inhibit fluctuations in the market price of our stock. 

Exhibit 4.2

 

Delaware Anti-Takeover Law 

We are subject to Section 203 of the DGCL, or Section 203. Section 203 generally prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder, unless: 

 

				
	
 
	
•
	
 
	
prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder; 

 

				
	
 
	
•
	
 
	
the interested stockholder owned at least 85% of the voting stock of the corporation outstanding upon consummation of the transaction, excluding for purposes of determining the number of shares outstanding (1) shares owned by persons who are directors and also officers and (2) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or 

 

				
	
 
	
•
	
 
	
on or subsequent to the consummation of the transaction, the business combination is approved by the board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder. 

Section 203 defines a business combination to include: 

 

				
	
 
	
•
	
 
	
any merger or consolidation involving the corporation and the interested stockholder; 

 

				
	
 
	
•
	
 
	
any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation; 

 

				
	
 
	
•
	
 
	
subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; 

 

				
	
 
	
•
	
 
	
subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; and 

 

				
	
 
	
•
	
 
	
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation. 

In general, Section 203 defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by the entity or person. 

Listing 

Our common stock is listed on the New York Stock Exchange, or NYSE, under the symbol “INST.” 

Transfer Agent and Registrar 

The transfer agent and registrar for our common stock is Computershare Trust Company N.A. The transfer agent and registrar’s address is 250 Royall Street, Canton, Massachusetts 02021. The transfer agent’s telephone number is (877) 373-6374.

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