Document:

exv4w6

 

Exhibit 4.6

SECURITY AGREEMENT

	 	 	 
	One Wall Street, New York, New York 10286

	 	October 17, 2005
	                    (Banking Office)
	 	 

     FOR VALUE RECEIVED, and in order to induce THE BANK OF NEW YORK (the “Bank”), in
its discretion, to make loans or otherwise extend credit at any time, and from time to time
to, or at the request of, the undersigned (the “Debtor”), whether the loans or credit so
extended shall be absolute or contingent, the Debtor (jointly and severally, if more than one
and whether executing the same or separate instruments) grants to the Bank, as security for
all present or future obligations or liabilities of any and all kinds of the Debtor to it,
whether incurred by the Debtor as maker, indorser, drawer, acceptor, guarantor, accommodation
party, counterparty, purchaser, seller or otherwise, whether due or to become due, secured or
unsecured, absolute or contingent, joint and/or several, and howsoever or whensoever acquired
by the Bank including interest accruing thereon before or after the commencement of any
insolvency, bankruptcy or reorganization proceeding of the Debtor whether or not such
interest is an allowable claim in any proceeding and irrespective of the discharge or release
of the Debtor in such proceeding (all of which are referred to collectively as the
“Obligations”), a security interest in and a lien upon all personal property and fixtures of
the Debtor or in which the Debtor has an interest wherever located and whether now or
hereafter existing or now owned or hereafter acquired and whether or not subject to the
Uniform Commercial Code (the “Code”) specified in Schedule A hereto, and also including all
interest, dividends and other distributions thereon paid and payable in cash or in property,
and all replacements and substitutions for, and all accessions and additions to, and all
products and proceeds of, all of the foregoing (all of which are referred to as the
“Collateral”).

     The Debtor agrees to deliver to the Bank whenever called for by it such additional
collateral security of a kind and of a market value satisfactory to the Bank, so that there
will, at all times, be with the Bank a margin of security for the payment of all Obligations
which shall be satisfactory to it. In addition to the Bank’s security interest in the Collateral, it shall have, and the Debtor
hereby grants to the Bank, a security interest and a lien for all the Obligations in and upon
any personal property of the Debtor or in which the Debtor may have an interest which is now
or may at any time hereafter come into the possession or control of the Bank, or of any third
party acting on its behalf, whether for the express purpose of being used by the Bank as
collateral security or held in custody or for any other or different purpose, including such
personal property as may be in transit by mail or carrier for any purpose, or covered or
affected by any documents in the Bank’s possession or control, or in the possession or control
of any third party acting on its behalf (said additional personal property is also referred to
as the “Collateral”). The Debtor hereby authorizes the Bank in its discretion, at any time,
whether or not the Collateral is deemed by it adequate, to appropriate and apply upon any of
the Obligations, whether or not due, any of such property of the Debtor and to charge any of
the Obligations against any balance of any account standing to the credit of the Debtor on the
books of the Bank.

     Upon failure of the Debtor to pay any Obligation when becoming or made due, in accordance
with its terms, the Bank shall have, in addition to all other rights and remedies allowed by
law, the rights and remedies of a secured party under the Code and, without limiting the
generality of the foregoing, the Bank may immediately, without demand of performance and
without notice of intention to sell or otherwise dispose of or of time or place of sale or
other disposition or of redemption or other notice or demand whatsoever to the Debtor, all of
which, to the extent permitted by law, are hereby expressly waived, and without advertisement,
(a) sell at public or private sale, grant options to purchase or otherwise realize upon, in the
State of New York, or elsewhere, the whole or from time to time any part of the Collateral upon
which the Bank shall have a security interest or lien as aforesaid, or any interest which the
Debtor may have therein, and (b) exercise any and all rights, options, powers, benefits or
privileges

 

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given to the Bank upon any life insurance policies held as Collateral. After deducting from the
proceeds of any such sale or other disposition of the Collateral all expenses (including, but not
limited to, reasonable attorneys’ fees and expenses and other expenses as set forth below), the
Bank shall apply the residue of such proceeds toward the payment of any of the Obligations, in
such order as the Bank shall elect, the Debtor remaining liable for any deficiency, plus interest
thereon, remaining unpaid after such application. If notice of any sale or other disposition is
required by law to be given, the Debtor hereby agrees that a notice sent at least five days before
the time of any intended public sale or of the time after which any private sale or other
disposition of the Collateral is to be made, shall be reasonable notice of such sale or other
disposition. The Debtor also agrees to assemble the Collateral at such place or places as the Bank
designates by written notice.

     At any such sale or other disposition the Bank or any other person designated by the Bank may
itself purchase the whole or any part of the Collateral sold, free from any right of redemption on
the part of the Debtor, which right, to the extent permitted by law, is hereby waived and
released.

     The Bank may, without any notice to the Debtor, in its discretion, whether or not any of the
Obligations are due, in its name or in the name of the Debtor, demand, sue for, collect and
receive any money or property at any time due, payable or receivable on or on account of or in
exchange for, and may compromise, settle or extend fee time of payment of, any of the demands or
obligations represented by any of the Collateral, and may also exchange any of the Collateral for
other property upon the reorganization, recapitalization or other readjustment of the issuer,
maker or other person who is obligated on or otherwise has liabilities with respect to the
Collateral, and in connection therewith may deposit any of the Collateral with any committee or
depositary upon such terms as the Bank may in its discretion deem appropriate, and the Debtor does
hereby constitute and appoint the Bank the Debtor’s true and lawful attorney to compromise, settle
or extend payment of said demands or obligations and exchange such Collateral as the Debtor might
or could do personally; all without liability or responsibility for action herein authorized and
taken or not taken in good faith. The Bank is entitled at any time in its discretion to notify an
account debtor or the obligor on any instrument to make payment to it, regardless of whether or
not the Debtor had been previously making collections on the Collateral, and the Bank may take
control of any proceeds of any of the Collateral, Upon request of the Bank, the Debtor shall
receive and hold all proceeds of the Collateral in trust for the Bank and not commingle any
collections with any of its own funds and immediately deliver such collections to the Bank.

     The Debtor agrees that the Collateral secures, and further agrees to pay on demand, all
expenses (including, but not limited to, reasonable attorneys’ fees and expenses and costs of any
insurance and payment of taxes or other charges) of, or incidental, to, the custody, care, sale or
collection of, or realization upon, any of the Collateral or in any way relating to the
enforcement or protection of the rights of the Bank hereunder, whether or not litigation is
commenced.

     The Debtor agrees to mark its books and records as the Bank shall request in order to reflect
the rights of the Bank granted herein, and the Bank may, in its sole discretion, take possession of
the Collateral at any time, either prior to or subsequent to a default under any of the
Obligations. The Debtor agrees to maintain such insurance on the Collateral as the Bank may
require. The Bank may, without any notice to the Debtor, in its discretion, and for its own
benefit, lend, use, transfer or repledge to any third party all or any part of the Collateral by
itself or commingled with the property of others, in bulk or otherwise. The Bank may, without any
notice to the Debtor, sell, assign or transfer any of the Obligations and the Bank’s rights and
duties hereunder, and may deliver the Collateral, or any part thereof, to the assignee or
transferee of any of the Obligations, who shall become vested with all the rights, remedies,
powers, security interests and liens herein given to the Bank in respect thereto; and the Bank shall
thereafter be relieved and fully discharged from any liability or responsibility in the premises.

 

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     The Bank may, without any notice to the Debtor, in its discretion, transfer, or cause to be
transferred, all or any part of the Collateral to its name, or to the name of its nominee, vote
the Collateral so transferred, and receive income and make or receive collections, including money, thereon and
hold said income and collections as Collateral or apply said income and collections to any of the
Obligations, the manner and distribution of the application to be made as the Bank shall elect.

     Calls for Collateral, demand for payment or notice to the Debtor may be given by leaving
same at the address given below or any other address hereafter filed with the Bank, or by
mailing same to such address with the same effect as if delivered personally. Such notice given
in the manner herein provided shall be effective whether or not received by the Debtor, The
Debtor agrees not to change its name, any of its places of business, remove any records of the
Debtor relating to any of the Collateral or move any of the Collateral without giving the Bank
thirty days’ prior written notice.

     With respect to the Collateral, the Bank shall be under no duty to send notices, perform
services, exercise any rights of collection, enforcement, conversion or exchange, vote, pay for
insurance, taxes or other charges or take any action of any kind in connection with the
management thereof and its only duty with respect thereto shall be to use reasonable care in
its custody and preservation while in its possession, which shall not include any steps
necessary to preserve, obtain, secure or acquire rights or property against or from any
parties.

     The Debtor authorizes the Bank, at the Debtor’s expense, to file one or more financing
statements and amendments thereto to perfect the security interests granted herein, without the
Debtor’s signature thereon, and to take all actions necessary to perfect (whether by filing,
possession, control or otherwise) its security interest in the Collateral under any applicable
law or regulation, and the Debtor agrees to do, file, record, make, execute and deliver all
such acts, deeds, things, agreements, notices, instruments and financing statements as the Bank
may request in order to perfect and enforce the rights of the Bank herein.

     If at any time it is necessary in the opinion of counsel to the Bank that any or all of the
securities held as Collateral (the “Pledged Securities”) be registered under the Securities Act of 1933, as
amended, or that an indenture with respect thereto be qualified under fee Trust Indenture Act of
1939, as amended, in order to permit the sale or other disposition of the Pledged Securities,
the Debtor shall at the Bank’s request and at the expense of the Debtor use the best efforts of
the Debtor promptly to cause the registration of the Pledged Securities and the qualification of
such indenture and to continue such registration and qualification under such laws and in such
jurisdictions and for as long as deemed appropriate by the Bank.

     The Debtor hereby authorizes the Bank to date this agreement as of the date of the granting
of any Obligation secured hereby and to complete any blank space herein (including any schedule
hereto) according to the terms upon which said Obligation was granted.

     This agreement may not be amended, or compliance with its terms waived, orally or by course
of dealing, but only by a writing signed by an authorized officer of the Bank.

     No failure on the part of the Bank to exercise, and no delay in exercising, any right,
remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise by the Bank of any right, remedy or power hereunder preclude any other or future
exercise thereof or the exercise of any other right, remedy or power.

 

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     Each and every right, remedy and power hereby granted to the Bank or allowed it by law or
other agreement shall be cumulative and not exclusive of any other right, remedy or power, and may
be exercised by the Bank at any time and from time to time.

     This agreement may be assigned by the Bank and its benefits shall inure to the successors,
indorsees and assigns of the Bank.

     This agreement shall be construed and interpreted, and all rights and obligations hereunder
shall be determined, in accordance with the laws of the State of New York without regard to
principles of conflict of laws.

     Unless otherwise defined or the text otherwise requires, all terms used herein shall have the
meanings specified in the Code.

     Every provision of this agreement is intended to be severable; if any term or provision of
this agreement shall be invalid, illegal or unenforceable for any reason whatsoever, the validity,
legality and enforceability of the remaining provisions hereof shall not in any way be affected or
impaired thereby.

     Any notice to the Bank shall be effective only upon receipt by the Bank and if directed to
the Bank at its banking office set forth above or any other address hereafter specified by written
notice from the Bank to the Debtor.

     The Debtor represents and warrants that at the time the Collateral becomes subject to the
Bank’s security interest, the Debtor shall be the sole owner of and fully authorized and able to
sell, transfer, pledge and/or grant a first priority security
interest in the Collateral to the
Bank and the Collateral shall be free and clear of all other claims, liens, charges, security
interests and encumbrances except as permitted in writing by the Bank. The Debtor represents and
warrants to the Bank that any information furnished to the Bank
regarding the Collateral is true and correct on the date hereof and is complete in all
material respects.

     The
Debtor represents and warrants that the Debtor is a corporation duly organized, validly
existing and in good standing under the laws of the state of its incorporation; that the
execution, delivery and performance of this agreement are within the Debtor’s corporate powers and
have been duly authorized by all necessary action of its board of directors and shareholders; and
that each person executing this agreement has the authority to execute and deliver this agreement
on behalf of the Debtor.

     THE DEBTOR SUBMITS TO THE JURISDICTION OF STATE AND FEDERAL COURTS LOCATED IN THE CITY AND
STATE OF NEW YORK IN PERSONAM AND AGREES THAT ALL ACTIONS AND PROCEEDINGS RELATING DIRECTLY OR
INDIRECTLY TO THIS AGREEMENT SHALL BE LITIGATED ONLY IN SAID COURTS OR IN COURTS LOCATED ELSEWHERE
AS THE BANK MAY SELECT AND THAT SUCH COURTS ARE CONVENIENT FORUMS AND WAIVES PERSONAL SERVICE UPON
IT AND CONSENTS TO SERVICE OF PROCESS OUT OF SAID COURTS BY MAILING A COPY THEREOF TO IT BY
REGISTERED OR CERTIFIED MAIL.

 

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     THE DEBTOR AND THE BANK WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING BASED UPON, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

	 	 	 
	SYMETRA LIFE INSURANCE COMPANY

	 	ADDRESS OF DEBTOR
	 
	 	 
	 

	 	777
108th AVE, NE
	 

	 	Bellevue, WA 98004

[SCHEDULE A ON THE FOLLOWING

PAGE MUST BE COMPLETED]

	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Oscar C. Tengtio
	 	 	 	By:
	 	/s/ Daniel B. Schaaf
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Oscar C. Tengtio
	 	 	 	Name:
	 	Daniel B. Schaaf
	Title:

	 	Executive Vice President & CFO
	 	 	 	Title:
	 	Assistant Secretary

 

November 28, 2005

Tonny Pinilla

Bank of New York

1 Wall Street, 17th Floor

New York, NY 10286

Dear Tonny:

Effective immediately, the following people are authorized to request disbursements
against lines of credit at the Bank of New York for Symetra Financial Corporation and
Symetra Life Insurance Company:

	 	 	 	 	 
	Roger F. Harbin

(425) 256-8055

	 	/s/ Roger F. Harbin
 

	 	 
	 
	 	 	 	 
	Oscar C. Tengtio

(425) 256-8880

	 	/s/ Oscar C. Tengtio
 

	 	 
	 
	 	 	 	 
	Daniel B. Schaaf

(425) 256-5331

	 	/s/ Daniel B. Schaaf
 

	 	 

If there are any questions or you require further information, please contact Erin
Keyes at 425-256-5204. Thank you for your prompt attention to this matter.

	 	 	 
	Sincerely,
	 	 
	 
	 	 
	/s/
Oscar C. Tengtio

	 	 
	Oscar C. Tengtio
	 	 
	Executive Vice President & CFO

	 	
	Symetra Financial Corporation
	 	 
	& Symetra Life Insurance Company
	 	 

Symetra Life Insurance Company • 777 108th Avenue NE • Bellevue, WA 98004-5135 • www.symetra.com 

Mailing Address: PO Box 34690 • Searcle, WA 9B124-1690 • Phone 1-800-796-3872 • TTY/TDD 1-800-833-6388exv4w7

 

Exhibit 4.7

EXHIBIT C

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES
ACT OF 1933 (THE “SECURITIES ACT”), OR ANY U.S. STATE SECURITIES LAWS AND MAY NOT BE
TRANSFERRED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS (I) (A) A REGISTRATION
STATEMENT IS IN EFFECT UNDER THE SECURITIES ACT WITH RESPECT TO SUCH SECURITIES, OR (B) A WRITTEN
OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY IS PROVIDED TO THE COMPANY TO THE EFFECT
THAT NO SUCH REGISTRATION IS REQUIRED, AND (II) THE TRANSFEREE IS AN “ACCREDITED INVESTOR” AS
DEFINED IN RULE 501(a) OF REGULATION D UNDER THE SECURITIES ACT.

IN ADDITION, ANY SALE, ASSIGNMENT, TRANSFER, PLEDGE OR OTHER DISPOSITION OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE IS RESTRICTED BY, AND THE RIGHTS ATTACHING TO THESE SECURITIES ARE
SUBJECT TO, THE TERMS AND CONDITIONS CONTAINED HEREIN AND THE SHAREHOLDERS AGREEMENT DATED AS OF
MARCH 8, 2004 (THE “SHAREHOLDERS AGREEMENT”), AS IT MAY BE AMENDED FROM TIME TO TIME, WHICH
ARE AVAILABLE FOR EXAMINATION BY HOLDERS OF SECURITIES AT THE REGISTERED OFFICE OF THE COMPANY.
THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE, BY ACQUIRING AND HOLDING SUCH
SECURITIES, SHALL BE DEEMED A PARTY TO SUCH SHAREHOLDERS AGREEMENT FOR ALL PURPOSES AND SHALL BE
REQUIRED TO AGREE IN WRITING TO BE BOUND BY AND PERFORM ALL OF THE TERMS AND PROVISIONS OF SUCH
SHAREHOLDERS AGREEMENT, ALL AS MORE FULLY PROVIDED THEREIN. IN ADDITION, ANY TRANSFEREE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE SHALL BE DEEMED TO BE A PARTY TO SUCH SHAREHOLDERS
AGREEMENT FOR ALL PURPOSES AND SHALL BE REQUIRED BY THE TRANSFEROR TO AGREE IN WRITING TO ACQUIRE
AND HOLD SUCH SECURITIES SUBJECT TO ALL OF THE TERMS OF SUCH SHAREHOLDERS AGREEMENT, ALL AS MORE
FULLY PROVIDED THEREIN, WHICH TERMS ARE TO BE ENFORCED BY THE SHAREHOLDERS OF THE COMPANY.

OCCUM ACQUISITION CORP.

WARRANT

	 	 	 
	Certificate No.: W — 2

	 	Date: July 29, 2004

          FOR CONSIDERATION RECEIVED, Occum Acquisition Corp., a Delaware corporation (the
“Company”), hereby grants to Berkshire Hathaway Inc. (the “Warrant Holder”) this
warrant certificate (this “Warrant”) to purchase, in accordance with the terms set forth
herein, 1,090,560 shares (the “Warrant Shares”) of the
Company’s common shares, initially having a par value of U.S. $0.01 per share (the “Common
Shares”), at a price per share equal to U.S. $100, as adjusted from time to time

 

 

pursuant to
Section 2 hereof (the “Exercise Price”) but at no time shall the Exercise Price be less
than the then current par value of any share to be issued pursuant hereto.

          This Warrant is issued pursuant to a letter agreement, dated as of March 8, 2004, between the
Company and the Warrant Holder.

          This Warrant is subject to the following provisions:

          SECTION 1. Warrant Terms. (a) This Warrant is for the purchase of the Warrant
Shares at the Exercise Price.

          (b) This Warrant shall expire on the tenth anniversary of the date hereof (the
“Expiration Date”). The Warrant exercise procedure set forth in Section 3 hereof must be
commenced by the Warrant Holder by 3:30 p.m. New York City time on such Expiration Date.

          SECTION 2. Anti-dilution Provisions. In order to prevent dilution of the purchase
rights granted under Section 1 hereof, the Exercise Price shall be subject to adjustment from time
to time pursuant to this Section 2; provided, however, that under no circumstances
will the Exercise Price be less than the then current par value of any share to be issued under
this Warrant.

          (a) Effect on Exercise Price of Certain Events. For purposes of determining the
adjusted Exercise Price, the following shall be applicable:

     (1) Share Dividend, Subdivision or Consolidation/Combination of Common
Shares. If the Company, at any time while this Warrant is outstanding, (A) shall pay a
stock or bonus share dividend on its Common Shares or pay any other distribution in Common
Shares, (B) subdivide the class of Common Shares into a larger number of shares or (C)
consolidate/combine the class of Common Shares into a smaller number of shares, then the
Exercise Price thereafter shall be determined by multiplying the Exercise Price by a
fraction (x) the numerator of which shall be the number of Common Shares (excluding
treasury shares, if any) issued and outstanding before such event and (y) the denominator
of which shall be the number of Common Shares (excluding treasury shares, if any) issued
and outstanding after such event. Any adjustment made pursuant to this Section 2(a)(1)
shall become effective immediately after the record date for the determination of
shareholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision or combination.

     (2) Issuance of Additional Common Shares. In case the Company at any time or
from time to time after the date hereof shall issue or sell additional Common Shares, other
than any issuance to which Section 2(a)(1) shall apply, without consideration or for a
consideration per share less than the Fair Market Value of the Common Shares on the day
immediately prior to such issue or sale,
then, and in each such case, subject to Section 2(b)(iv), the Exercise Price shall be

 

 

reduced, concurrently with such issue or sale, to a price determined by multiplying such
Exercise Price by a fraction

     (x) the numerator of which shall be (i) the number of Common Shares
outstanding immediately prior to such issue or sale plus (ii) the number of Common
Shares which the aggregate consideration received by the Company for the total
number of such additional Common Shares so issued or sold would purchase at such
Fair Market Value of the Common Shares, and

     (y) the denominator of which shall be the number of Common Shares outstanding
immediately after such issue or sale;

provided that for the purposes of this Section 2(a)(2), treasury shares shall not be deemed
to be outstanding.

     (3) Dividends and Distributions. In case the Company at any time or from
time to time after the date hereof shall declare, order, pay or make a dividend or other
distribution (including any distribution of other or additional stock or other securities
or property or options, warrants or other rights to purchase Common Shares or Convertible
Securities (as hereinafter defined) (other than options granted to employees of the
Company) (collectively, “Assets”) by way of dividend or spin-off, reclassification,
recapitalization or similar corporate rearrangement) on the Common Shares, other than a
dividend payable in additional Common Shares (which is the subject of Section 2(a)(1)
hereof), then, and in each such case, the Company shall make the same dividend or
distribution to Warrant Holders as it makes to holders of Common Shares pro rata based on
the number of Common Shares for which such Warrants are then exercisable, and the Exercise
Price shall not be adjusted in respect thereof.

     (4) Consolidation, Merger, etc.

     (A) Adjustments for Consolidation, Merger, Sale of Assets,
Reorganization, etc. In case the Company after the date hereof (i) shall
consolidate with or merge into any other Person (as hereinafter defined) and
shall not be the continuing or surviving corporation of such consolidation or
merger, (ii) shall permit any other Person to consolidate with or merge into the
Company and the Company shall be the continuing or surviving Person but, in
connection with such consolidation or merger, the Common Shares shall be changed
into or exchanged for stock or other securities of any other Person or cash or
any other property, (iii) shall transfer all or substantially all of its
properties or assets to any other Person, (iv) shall effect a capital
reorganization or reclassification of the Common Shares (other than a capital
reorganization or reclassification resulting in an adjustment to the Exercise
Price as provided in another paragraph of this Section 2), or (v)
shall effect any other transaction in which the Common Shares are

 

 

changed into or exchanged for stock or other securities of any other Person, then, except
and insofar as otherwise provided in Section 2(a)(4)(C) in the case of each such
transaction, proper provision shall be made so that, upon the basis and the terms
and in the manner provided in this Warrant, the holder of this Warrant, upon the
exercise hereof at any time after the consummation of such transaction, shall be
entitled to receive (at the aggregate Exercise Price in effect at the time of
such consummation for all Common Shares issuable upon such exercise immediately
prior to such consummation), in lieu of the Common Shares issuable upon such
exercise prior to such consummation, the amount of securities, cash or other
property to which such holder would actually have been entitled as a shareholder
upon such consummation if such holder had exercised the rights represented by
this Warrant immediately prior thereto. As used herein, “Person” shall
mean an individual, company, corporation, limited liability company, firm,
partnership, trust, estate, unincorporated association or other entity.

     (B) Assumption of Obligations. Notwithstanding anything contained
in this Warrant or in the Shareholders Agreement to the contrary, the Company
will not effect any of the transactions described in Sections 2(a)(4)(A)(i)-(v)
unless, prior to the consummation thereof, each Person (other than the Company)
which may be required to deliver any stock, securities, cash or property upon the
exercise of this Warrant as provided herein shall assume, by written instrument
delivered to, and reasonably satisfactory to, the holder of this Warrant, the
obligations of the Company under this Warrant (and if the Company shall survive
the consummation of such transaction, such assumption shall be in addition to,
and shall not release the Company from, any continuing obligations of the Company
under this Warrant). Nothing in this Section 2(a)(4) shall be deemed to authorize
the Company to enter into any transaction not otherwise permitted by the
Shareholders Agreement or the By-laws.

     (C) Qualifying Transactions. (1) In the event that, after the
date hereof, the Company shall effect a transaction of the type contemplated by
subparagraph (A) above and in connection therewith (x) the Common Shares are
exchanged in whole or in part for cash (other than cash in lieu of
fractional shares), securities (other than Voting Common Stock (as defined below)) or other
property (collectively, “Non-Common Consideration”) and (y) the Per Share
Value (as defined below) exceeds the Subscription Price (as defined below) (any
such transaction being referred to herein as a “Qualifying Transaction”),
then (i) the holder of this Warrant shall receive, upon the consummation of the
Qualifying Transaction, an amount in cash equal to the Intrinsic Value Amount (as
defined below) and (ii) if any portion of the consideration to be received by
holders of Common Shares in such Qualifying Transaction consists of Voting Common
Stock (as defined below), the holder of the Warrant,
upon the exercise hereof at any time after the consummation of such

 

 

Qualifying Transaction, shall be entitled to receive, at the aggregate exercise
price determined pursuant to subparagraph (C)(3) below, the number of shares of
Voting Common Stock determined pursuant to subparagraph (C)(3) below.

     (2) Certain Definitions. For purposes of this Section 2(a)(4), the following
terms have the following meanings:

          “Per Share Value” means the average value of the consideration to be received in
respect of each outstanding Common Share pursuant to the Qualifying Transaction as determined by
mutual agreement of the Independent Directors (as defined in Section 2(b)(ii) below) and the
holders of not less than 50% in interest of all outstanding warrants to purchase Common Shares
containing this provision, or, if they shall fail to agree, by an Investment Bank.

          “Subscription Price” means U.S. $100.00; provided, however, that such
amount shall be (i) adjusted in an appropriate and proportionate manner consistent with the
provisions for adjusting the Exercise Price in Section 2(a)(1) for any events that require an
adjustment in the Exercise Price pursuant to such section and (ii) reduced by an amount equal to
the pre-tax value (determined pursuant to Section 2(b)(i)) per Common Share of any dividend or
other distribution described in Section 2(a)(3).

          “Voting Common Stock” means, as to any issuer, (i) voting equity securities of such
issuer having no preference as to dividends or in a liquidation over any other securities of such
issuer, (ii) nonvoting equity securities of such issuer which are in all other respects identical
to, and are expected to have, after completion of the Qualifying Transaction, liquidity
substantially equivalent to or greater than, the outstanding voting equity securities of such
issuer that would fit the description in the preceding clause (i), or (iii) securities convertible
into or exchangeable for the voting or nonvoting securities described in clause (i) or (ii).

          “Intrinsic Value Amount” means (i) the Applicable Black-Scholes Value minus (ii) the
Applicable Reduction, if any.

          “Applicable Black-Scholes Value” shall mean the product of (i) the Black-Scholes Value
and (ii) the Non-Common Stock Portion.

          “Non-Common Stock Portion” means (i) one minus (ii) the Common Stock Portion.

          “Common Stock Portion” means the quotient obtained by dividing (i) the total value of
the shares of Voting Common Stock to be issued in respect of the outstanding Common Shares pursuant
to the Qualifying Transaction by (ii) the total value of the shares of Voting Common Stock and
Non-Common Consideration to be issued in respect of the outstanding Common Shares pursuant to the
Qualifying Transaction, in each case as determined by mutual agreement of the Independent Directors
and the holders of not less than 50% in interest of all outstanding warrants to purchase Common Shares
containing this provision, or, if they shall fail to agree, by an Investment Bank.

 

 

          “Applicable Reduction” means the product of (i) the Reduction Amount and (ii) the
Non-Common Stock Portion.

          “Reduction Amount” means the product of (i) the Discount Factor and (ii) the amount by
which (x) the Black-Scholes Value exceeds (y) the Total Spread.

          “Discount Factor” means (A) one minus (B) the quotient obtained by dividing (i) the
amount by which (x) the Per Share Value exceeds (y) the Subscription Price by (ii) the amount by
which (x) the Hurdle Price exceeds (y) the Subscription Price; provided, that if the
quotient determined pursuant to clause (B) is greater than one, such quotient shall be deemed to be
one.

          “Total Spread” means the product of (i) the total number of Warrant Shares purchasable
pursuant to this Warrant immediately prior to the completion of the Qualifying Transaction and (ii)
the Spread.

          “Spread” means the amount by which (i) the Per Share Value exceeds (ii) the
Subscription Price; provided, however, that in the event the Subscription Price
exceeds the Per Share Value, the Spread shall be deemed to be zero.

          “Hurdle Price” means U.S. $155.00; provided, however, that such amount
shall be (i) adjusted in an appropriate and proportionate manner consistent with the provisions for
adjusting the Exercise Price in Section 2(a)(1) for any events that require an adjustment in the
Exercise Price pursuant to such section and (ii) reduced by an amount equal to the pre-tax value
(determined pursuant to Section 2(b)(i)) per Common Share of any dividend or other distribution
described in Section 2(a)(3).

          “Investment Bank” means an independent nationally-recognized U.S. investment banking
firm selected by the Independent Directors with the consent of the holders of not less than 50% in
interest of all outstanding warrants to purchase Common Shares containing this provision (which
consent shall not be unreasonably withheld), the fees and expenses of which shall be shared equally
by the Company on the one hand and such holders on the other.

          “Black-Scholes Value” means the value of this Warrant immediately prior to
consummation of the Qualifying Transaction, as calculated by an Investment Bank, using the
Black-Scholes calculation method for valuing options and the following assumptions:

	 	 	 	 	 
	 

	 	Volatility =
	 	25% 
	 
	 	 	 	 
	 

	 	Risk Free Rate =
	 	the then current effective U.S.
Federal government interest rate for
a bond or note with a remaining time
to maturity equal to the Term of the
Warrant then in effect
	 
	 	 	 	 
	 

	 	Dividend Yield =
	 	0% 

 

 

	 	 	 	 	 
	 

	 	Exercise Price =
	 	the Exercise Price in effect
immediately prior to the
consummation of the Qualifying
Transaction
	 
	 	 	 	 
	 

	 	Term of the Warrant =
	 	the lesser of five years and the
remaining term of the Warrant,
measured from the date of completion
of the Qualifying Transaction to the
Expiration Date

The underlying security price for purposes of the Black-Scholes calculation shall be the Per Share
Value.

          Exhibit C to this Warrant contains examples illustrating certain of the calculations
required by this Section 2(a)(4)(C).

     (3) Voting Common Stock Consideration. In the event of a Qualifying
Transaction in which any portion of the consideration to be received by holders of Common
Shares in such Qualifying Transaction consists of Voting Common Stock, then proper
provision shall be made so that, upon the basis and the terms and in the manner provided in
this Warrant, the holder of this Warrant, upon the exercise hereof at any time after the
consummation of such Qualifying Transaction, shall be entitled to receive (at the aggregate
exercise price determined pursuant to this subparagraph (3)) a number of shares of Voting
Common Stock equal to the product of (i) the product of (x) the aggregate number of Warrant
Shares purchasable pursuant to this Warrant immediately prior to the completion of the
Qualifying Transaction and (y) the Common Stock Portion and (ii) the Calculated Exchange
Ratio. The aggregate exercise price of this Warrant after the consummation of such
Qualifying Transaction shall be equal to the product of (i) the aggregate Exercise Price of
this Warrant for the number of Warrant Shares purchasable pursuant to this Warrant
immediately prior to the completion of the Qualifying Transaction and (ii) the Common Stock
Portion.

For purposes of this subparagraph (3):

          “Calculated Exchange Ratio” means the quotient obtained by dividing (i) the Per Share
Value by (ii) the Average Closing Price of the Voting Common Stock.

          “Average Closing Price” means (a) the average of the closing prices per share of the
Voting Common Stock on the national securities exchange or automated quotation system on which such
stock is then listed for the 10 consecutive trading days immediately preceding the closing date of
the Qualifying Transaction, or (b) if such Voting Common Stock is not so listed, the fair market
value per share of such Voting Common Stock, determined by mutual agreement of the Independent
Directors and the holders of not less than 50% in interest of all outstanding warrants to purchase
Common Shares containing this provision, or, if they shall fail to agree, by an Investment Bank.

     (4) Cancelation of Warrant. In the event of a Qualifying Transaction in
which the Common Stock Portion is zero, then the holder of this Warrant shall surrender
this Warrant at the time of payment of the Intrinsic Value Amount,

 

 

whereupon this Warrant
shall be canceled and all rights hereunder shall expire. In the event of a Qualifying
Transaction in which the Common Stock Portion is more than zero, then the holder of this
Warrant shall surrender this Warrant at the time of payment of the Intrinsic Value Amount
in exchange for a warrant of like tenor representing the right to purchase the number of shares of Voting Common Stock determined pursuant to Section 2(a)(4)(C)(3) at the aggregate
exercise price as determined pursuant to Section 2(a)(4)(C)(3).

     (5) Cash Elections; etc. In the event that the type of consideration to be
received per Common Share in a Qualifying Transaction is subject to the election of the
holders thereof, such election permits such holder to elect to receive Voting Common Stock
and there is no limitation on the number of shares of Voting Common Stock to be issued in
the Qualifying Transaction, then (i) after the consummation of such transaction this
Warrant shall be exercisable solely for Voting Common Stock, (ii) such transaction shall
not be deemed to constitute a Qualifying Transaction and (iii) the provisions of Section
2(a)(4)(A) shall apply.

     (6) All Reasonable Efforts. In the case of a Qualifying Transaction in which
any portion of the consideration to be received by the holders of Common Shares consists of
Voting Common Stock, the holder of this Warrant and the Company shall use all reasonable
efforts to cause this Warrant to become exercisable solely for Voting Common Stock and, if
the Person who shall be issuing Voting Common Stock in such transaction agrees in writing
that this Warrant shall be exercisable solely for Voting Common Stock, then (i) such
transaction shall not be deemed to constitute a Qualifying Transaction and (ii) the
provisions of Section 2(a)(4)(A) shall apply.

          (b) Other Provisions Applicable to Adjustments Under This Section. The following
provisions shall be applicable to the making of adjustments to the number of Warrant Shares for
which the Warrant is exercisable provided for in this Section 2.

     (i) Adjustment in Number of Warrant Shares. Upon each adjustment of the
Exercise Price pursuant to Sections 2(a)(1) or 2(a)(2), the number of Common Shares for
which this Warrant is exercisable shall be adjusted by multiplying the number of Common
Shares for which this Warrant was exercisable prior to such adjustment by a fraction (i)
whose numerator is the Exercise Price in effect immediately prior to such adjustment and
(ii) whose denominator is the Exercise Price in effect immediately after such
adjustment.

     (ii) Computation of Asset Value and Fair Market Value for Purposes of Section
2. To the extent that the Company shall distribute Assets other than cash, except
as herein otherwise expressly provided, then the value of such Assets shall be
determined by mutual agreement of the Independent Directors and the holders of not less
than 50% in interest of all outstanding warrants to
purchase Common Shares containing this provision, or, if they shall fail to agree,
by an Investment Bank. The “Fair Market Value” of the Common Shares at any
given time shall mean (a) if the Common Shares are listed on a

 

 

securities exchange (or
quoted in a securities quotation system), the average closing sale price of the Common
Shares on such exchange (or in such quotation system), or, if the Common Shares are
listed on (or quoted in) more than one exchange (or quotation system), the average
closing sale price of the Common Shares on the principal securities exchange (or
quotation system) on which the Common Shares are then traded, or, if the Common Shares
are not then listed on a securities exchange (or quotation system) but are traded in the
over-the-counter market, the average of the latest bid and asked quotations for the
Common Shares in such market, in each case for the last five trading days immediately
preceding the day on which such Fair Market Value is determined in accordance with the
applicable provision of this Section 2 or (b) if no such closing sales prices or
quotations are available because such shares are not publicly traded or otherwise, the
fair value of such shares as determined by mutual agreement of the Independent Directors
and the holders of not less than 50% in interest of all outstanding warrants to purchase
Common Shares containing this provision, or, if they shall fail to agree, by an
Investment Bank. As used herein, the term “Independent Director” shall mean
each member of the Board of Directors of the Company that is not (x) a director, officer
or employee of any Warrant Holder or any affiliate of any Warrant Holder, (y) the holder
of a 10% or greater equity interest in any Warrant Holder or any affiliate of any
Warrant Holder or (z) a member of the immediate family of any director, officer or
employee of any Warrant Holder or any holder of a 10% or greater equity interest in any
such Warrant Holder or any affiliate of any Warrant Holder.

     (iii) When Adjustment To Be Made. The adjustments required by this
Section 2 shall be made whenever and as often as any specified event requiring an
adjustment shall occur. For the purpose of any adjustment, any specified event shall be
deemed to have occurred at the close of business on the date of its occurrence.

     (iv) Fractional Interest: Rounding. In computing adjustments under this
Section 2, fractional interests in Common Shares shall be taken into account to the
nearest 1/10th of a share, and adjustments in the Exercise Price shall be made to the
nearest $.001.

     (v) Certain Exclusions. No adjustment in the number of Common Shares
purchasable under this Warrant or the Exercise Price therefor shall be made as a result
of (x) any adjustment in the number of Common Shares purchasable under any other Warrant
or the exercise price thereunder, or (y) for the issuance of any employee stock options
or any Common Shares issuable under employee stock options, employee stock purchase
plans, or any other form of equity based compensation granted to employees of the
Company.

     (vi) Computation of Consideration. For the purposes of this Section 2,

 

 

     (A) the consideration for the issue or sale of any additional Common Shares
shall, irrespective of the accounting treatment of such consideration,

     (x) insofar as it consists of cash, be computed at the net amount of
cash received by the Company,

     (y) insofar as it consists of property (including securities) other
than cash, be computed at the fair value thereof at the time of such issue
or sale, as determined by mutual agreement of the Independent Directors
and the holders of not less than 50% in interest of all outstanding
warrants to purchase Common Shares containing adjustment provisions of
like tenor to the applicable adjustment provision contained in this
Warrant, or, if they shall fail to agree, by an Investment Bank, and

     (z) in case additional Common Shares are issued or sold together
with other stock or securities or other assets of the Company for a
consideration which covers both, be the portion of such consideration so
received, computed as provided in clauses (x) and (y) above, allocable to
such additional Common Shares, all as determined in good faith by mutual
agreement of the Independent Directors and the holders of not less than
50% in interest of all outstanding warrants to purchase Common Shares
containing adjustment provisions of like tenor to the applicable
adjustment provision contained in this Warrant, or, if they shall fail to
agree, by an Investment Bank;

     (B) additional Common Shares deemed, pursuant to Section 2(c), to have been
issued, relating to Options and Convertible Securities, shall be deemed to have
been issued for a consideration per share determined by dividing

     (x) the total amount, if any, received and receivable by the Company
as consideration for the issue, sale, grant or assumption of the Options
or Convertible Securities in question, plus the minimum aggregate amount
of additional consideration (as set forth in the instruments relating
thereto, without regard to any provision contained therein for a
subsequent adjustment of such consideration to protect against dilution)
payable to the Company upon the exercise in full of such Options or the
conversion or exchange of such Convertible Securities or, in the case of
Options for Convertible Securities, the exercise of such Options for
Convertible Securities and the conversion or exchange of such
Convertible Securities, in each case computing such consideration as
provided in the foregoing subdivision (A),

 

 

     by

     (y) the maximum number of Common Shares (as set forth in the
instruments relating thereto, without regard to any provision contained
therein for a subsequent adjustment of such number) issuable upon the
exercise of such Options or the conversion or exchange of such Convertible
Securities; and

     (C) additional Common Shares deemed to have been issued pursuant to Section
2(a)(1), relating to stock dividends, stock splits, etc., shall be deemed to have
been issued for no consideration.

          (c) Treatment of Options and Convertible Securities. In case the Company at any time
or from time to time after the date hereof shall issue, sell, grant or assume, or shall fix a
record date for the determination of holders of any class of securities of the Company other than
the Common Shares entitled to receive, any (x) options, warrants or other rights to purchase Common
Shares (other than options granted to employees) or Convertible Securities (as defined below)
(“Options”) or (y) securities convertible into or exchangeable for Common Shares
(“Convertible Securities”), then, and in each such case, the maximum number of additional
Common Shares (as set forth in the instrument relating thereto, without regard to any provisions
contained therein for a subsequent adjustment of such number) issuable upon the exercise of such
Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange
of such Convertible Securities, shall be deemed for purposes of Section 2(a)(2) to be additional
Common Shares issued as of the time of such issue, sale, grant or assumption or, in case such a
record date shall have been fixed, as of the close of business on such record date (or, if the
Common Shares trade on an ex-dividend basis, on the date prior to the commencement of ex-dividend
trading); provided, however, that such additional Common Shares shall not be deemed
to have been issued unless the consideration per share (determined pursuant to section 2(b)(vi))
would be less than the Fair Market Value on the date immediately prior to such issue, sale, grant
or assumption or immediately prior to the close of business on such record date (or, if the Common
Shares trade on an ex-dividend basis, on the date prior to the commencement of ex-dividend
trading), as the case may be, and provided further that in any such case in which
additional Common Shares are deemed to be issued:

     (i) no further adjustment of the Exercise Price shall be made upon the subsequent
issue or sale of Convertible Securities or Common Shares upon the exercise of such
Options or the conversion or exchange of such Convertible Securities;

     (ii) if such Options or Convertible Securities by their terms provide, with the
passage of time or otherwise, for any increase or decrease in the consideration payable
to the Company, or decrease or increase in the number of
additional Common Shares issuable, upon the exercise, conversion or exchange
thereof (by change of rate or otherwise), the Exercise Price computed upon the original
issue, sale, grant or assumption thereof (or upon the occurrence of the

 

 

record date, or
date prior to the commencement of ex-dividend trading, as the case may be, with respect
thereto), and any subsequent adjustments based thereon, shall, upon any such increase or
decrease becoming effective, be recomputed to reflect such increase or decrease insofar
as it affects such Options, or the rights of conversion or exchange under such
Convertible Securities, which are outstanding at such time;

     (iii) upon the expiration (or purchase by the Company and cancellation or
retirement) of any such Options which shall not have been exercised or the expiration of
any rights of conversion or exchange under any such Convertible Securities which (or
purchase by the Company and cancellation or retirement of any such Convertible
Securities the rights of conversion or exchange under which) shall not have been
exercised, the Exercise Price computed upon the original issue, sale, grant or
assumption thereof (or upon the occurrence of the record date, or date prior to the
commencement of ex-dividend trading, as the case may be, with respect thereto), and any
subsequent adjustments based thereon, shall, upon such expiration (or such cancellation
or retirement, as the case may be), be recomputed as if:

     (A) in the case of Options for Common Shares or Convertible Securities, the
only additional Common Shares issued or sold were the additional Common Shares,
if any, actually issued or sold upon the exercise of such Options or the
conversion or exchange of such Convertible Securities and the consideration
received therefor was (x) an amount equal to (1) the consideration actually
received by the Company for the issue, sale, grant or assumption of all such
Options, whether or not exercised, plus (2) the consideration actually received
by the Company upon such exercise, minus (3) the consideration paid by the
Company for any purchase of such Options which were not exercised, or (y) an
amount equal to (1) the consideration actually received by the Company for the
issue or sale of all such Convertible Securities which were actually converted or
exchanged, plus (2) the additional consideration, if any, actually received by
the Company upon such conversion or exchange, minus (3) the consideration paid by
the Company for any purchase of such Convertible Securities the rights of
conversion or exchange under which were not exercised, and

     (B) in the case of Options for Convertible Securities, only the Convertible
Securities, if any, actually issued or sold upon the exercise of such Options
were issued at the time of the issue, sale, grant or assumption of such Options,
and the consideration received by the Company for the additional Common Shares
deemed to have then been issued was an amount equal to (x) the consideration
actually received by the Company for the issue, sale, grant or assumption of all
such Options,
whether or not exercised, plus (y) the consideration deemed to have been
received by the Company (pursuant to section 2(b)(vi)) upon the issue or sale of
such Convertible Securities with respect to which such Options

 

 

were actually exercised, minus (z) the consideration paid by the Company for any purchase of
such Options which were not exercised;

     (iv) no readjustment pursuant to subdivision (ii) or (iii) above shall have the
effect of increasing the Exercise Price by an amount in excess of the amount of the
adjustment thereof originally made in respect of the issue, sale, grant or assumption of
such Options or Convertible Securities; and

     (v) in the case of any such Options which expire by their terms not more than 30
days after the date of issue, sale, grant or assumption thereof, no adjustment of the
Exercise Price shall be made until the expiration or exercise of all such Options,
whereupon such adjustment shall be made in the manner provided in subdivision (iii)
above.

          (d) Other Dilutive Events. In case any event shall occur as to which the provisions
of Section 2 are not strictly applicable but the failure to make any adjustment would not fairly
protect the purchase rights (including the rights provided under Section 2(a)(4)(C)) represented by
this Warrant in accordance with the essential intent and principles of such Sections, then, in each
such case, the Independent Directors of the Company shall appoint an Investment Bank, which shall
give its opinion upon the adjustment, if any, on a basis consistent with the essential intent and
principles established in Section 2, necessary to preserve, without dilution, the purchase rights
represented by this Warrant. Upon receipt of such opinion, the Company will promptly mail a copy
thereof to the holder of this Warrant and shall make the adjustments described therein.

          (e) Notices. Immediately upon any adjustment of the Exercise Price, the Company
shall give, or cause to be given, written notice thereof, executed by the Chief Financial Officer
(or, if none, the Chief Executive Officer or President) of the Company, to the Warrant Holder,
setting forth in reasonable detail and certifying the event requiring the adjustment, the method by
which the adjustment was calculated, the number of Warrant Shares for which the Warrant is
exercisable and the Exercise Price after giving effect to such adjustment. The Company shall keep
at its registered office copies of all such written notices and cause the same to be available for
inspection during normal business hours by the Warrant Holder. The Company shall give, or cause to
be given, written notice to the Warrant Holder at least 10 days prior to the date on which the
Company closes its books or takes a record (i) with respect to any dividend or distribution upon
Common Shares, (ii) with respect to any pro rata subscription offer to holders of Common Shares or
(iii) for determining rights to vote with respect to any transaction described in Section 2(a)(4),
dissolution or liquidation. The Company shall also give, or cause to be given, written notice to
the Warrant Holder at least 10 days prior to the date on which any transaction described in Section
2(a)(4) shall take place.

          SECTION 3. Exercise of Warrant. (a) Exercise Procedure. The Warrant Holder
may exercise all or a portion of this Warrant for all or a portion of the Warrant Shares at any
time and from time to time commencing after the date hereof until 3:30 p.m. New York City time, on
the Expiration Date by irrevocably surrendering at the

 

 

registered office of the Company this
Warrant and a completed Exercise Agreement (substantially in the form of Exhibit A attached
hereto) setting forth the number of Warrant Shares being exercised, and by paying the Exercise
Price in one of the following manners:

     (i) Cash Exercise. The Warrant Holder shall deliver to the Company by
wire transfer of immediately available funds an amount equal to the Exercise Price per
Warrant Share exercised in the Exercise Agreement; or

     (ii) Cashless Exercise. After the date of issuance of this Warrant, if
the Common Shares are listed on a national securities exchange, automated quotation
system or are available for sale in the over-the-counter market, the Warrant Holder
shall have the right to surrender this Warrant to the Company (including that portion of
the Warrant in payment of the Exercise Price to effect such cashless exercise) together
with a notice of cashless exercise, in which event the Company shall exchange such
portion of the Warrant subject to the Exercise Agreement, as the circumstances require
in order for such number of Common Shares to be issued, determined as follows:

X = Y multiplied by (A-B)/A where:

X = the number of Common Shares to be issued to the Warrant Holder

Y = the number of Warrant Shares with respect to which this Warrant is
being exercised in the Exercise Agreement

A = the average of the per share Market Price of the Common Shares for the
five (5) trading days immediately prior to (but not including) the date of
exercise (but not less than the then par value of the Common Shares)

B = the Exercise Price

If the foregoing calculation results in a negative number, then no Warrant Shares shall be issued.

For purposes of Rule 144 promulgated under the Securities Act only, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to
have been acquired and the full purchase price therefor paid by the Warrant Holder, and the holding
period for the Warrant Shares shall be deemed to have been commenced on the issue date to the
extent permitted by Rule 144.

For purposes hereof, “Market Price” means on any particular date (i) the closing bid price
per Common Share on such date on the national securities exchange or automated quotation system on
which the Common Shares are then listed or if there is no such price on such date, then the closing
bid price on such exchange or quotation system on the date nearest preceding such date, or (ii) if
the Common Shares are not then listed on a national

 

 

securities exchange or automated quotation
system, the closing bid price for each Common Share in the over-the-counter market, as reported by
the National Quotation Bureau Incorporated (or similar organization or agency succeeding to its
functions of reporting prices) at the close of business on such date.

          (b) The Company shall cause certificates for the Warrant Shares to be issued in the name of
and delivered to the Warrant Holder, or subject to the transfer restrictions referred to in the
legend endorsed hereon, as the Warrant Holder may direct, as soon as practicable and in any event
within ten (10) business days after receipt by the Company of the items required by Section 3(a)
for the respective method or methods of exercise. Unless this Warrant has expired or all of the
purchase rights represented hereby have been exercised, the Company shall prepare a new Warrant,
substantially identical hereto, representing the rights formerly represented by this Warrant which
have not expired or been exercised and shall, within such 10-business-day period, deliver such new
Warrant to such Warrant Holder.

          (c) Any Warrant Shares issuable upon the proper exercise of this Warrant shall be deemed to
have been issued to the Warrant Holder on the date the Company receives the completed Exercise
Agreement and payment of the Exercise Price, if any, and the Warrant Holder shall be deemed for all
purposes to have become the record holder of such Common Shares on such date.

          (d) The issuance of certificates for the Warrant Shares shall be made without charge to the
Warrant Holder for any issuance tax in respect thereof or other cost incurred by the Company in
connection with such exercise and the related issuance of the Warrant Shares.

          (e) The Company shall at all times reserve and keep available such number of authorized but
unissued Common Shares, solely for the purpose of issuance upon exercise of this Warrant, as are
issuable upon exercise of this Warrant. All Warrant Shares shall, when issued, be duly and validly
issued, fully paid and nonassessable (meaning that no further sums are required to be paid by the
holders thereof in connection with the issue thereof) and free from all taxes, liens and charges.
The Company shall take such actions as may be necessary to ensure that the Warrant Shares may be so
issued without violation of any applicable law or governmental regulation or any requirements of
any securities exchange upon which its shares may be listed (except for official notice of issuance
which shall be immediately delivered by the Company upon each such issuance).

          (f) Without prejudice to the rights of the Warrant Holders as signatory to the Shareholders
Agreement as set forth in Section 5 hereof, the Company shall have the option, in its sole
discretion, to deliver Warrant Shares which are (i) subject to the
securities law transfer restrictions referred to in the legend endorsed hereon or (ii) subject
to a registration statement filed under the Securities Act.

          SECTION 4. Warrant Transfer Restrictions. Subject to the transfer conditions
referred to in the legend endorsed hereon, this Warrant and all rights

 

 

hereunder are transferable,
in whole or in part, without charge to the Warrant Holder, upon surrender of this Warrant with a
properly executed Assignment (substantially in the form of Exhibit B hereto) at the
registered office of the Company; provided, however, that (i) such transfer shall
comply with Section 2 of the Shareholders Agreement and (ii) prior to such transfer, the transferee
shall enter into the Shareholders Agreement with the Company.

          SECTION 5. Shareholders Agreement; Registration Rights. The Warrant Holder, as
signatory to the Shareholders Agreement, shall have the rights set forth in Section 3 of the
Shareholders Agreement with respect to this Warrant and any Warrant Shares issued hereunder.

          SECTION 6. Amendment and Waiver. Except as otherwise provided herein, the provisions
of this Warrant may be amended only if the Company has obtained the written consent of the Warrant
Holder and a majority of the Independent Directors has approved the amendment.

          SECTION 7. Descriptive Headings. The descriptive headings of this Warrant are
inserted for convenience only and do not constitute a part of this Warrant.

          SECTION 8. Definitions. Terms used in this Warrant unless otherwise defined herein
shall have the meaning ascribed to them in the Shareholders Agreement.

          SECTION 9. Governing Law. This Warrant shall be governed by and construed and
enforced in accordance with the internal laws of the State of New York. Each party hereby
irrevocably submits to the nonexclusive jurisdiction of the courts of New York for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that (i) it is not personally subject to the jurisdiction of any such court,
and/or (ii) that such suit, action or proceeding is not brought in the proper forum. Each party
hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the address for such
notices to it under this Warrant and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any manner permitted by law.

          SECTION 10. Complete Agreement; Severability. Except as otherwise expressly set
forth herein, this Warrant embodies the complete agreement and understanding among the parties
hereto with respect to the subject matter hereof and supersedes and preempts any prior
understandings, agreements or representations by or among the parties, written or oral, which may
have related to the subject matter hereof in
any way. In case any provision of this Warrant shall be invalid, illegal or unenforceable,
such invalidity, illegality, or unenforceability shall not in any way affect or impair any other
provision of this Warrant.

 

 

          SECTION 11. Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, first-class mail, facsimile, or air courier
guaranteeing overnight delivery.

	 	 	 	 	 
	 

	 	If to the Company:
	 	Occum Acquisition Corp.
	 

	 	 	 	370 Church Street
	 

	 	 	 	Guilford, CT 06437
	 

	 	 	 	Attention: Reid Campbell, Treasurer
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Cravath, Swaine & Moore LLP
	 

	 	 	 	825 Eighth Avenue
	 

	 	 	 	New York, New York 10019
	 

	 	 	 	Attention: William J. Whelan, III, Esq.
	 
	 	 	 	 
	 

	 	If to the Warrant Holder:
	 	Berkshire Hathaway Inc.
	 

	 	 	 	[                               ]

          All such notices and communications shall be deemed to have been duly given when delivered by
hand, if personally delivered; five business days after the date of deposit in the U.S. mail, if
mailed by first-class air mail; when receipt is acknowledged by the recipient facsimile machine, if
sent by facsimile; and three business days after being delivered to a next-day air courier.

 

 

          IN WITNESS WHEREOF, the Company has caused this Warrant to be signed and attested by its duly
authorized officer and to be dated the date of issuance hereof.

	 	 	 	 	 
	 	OCCUM ACQUISITION CORP.,

 	 
	 	  	 By:
 	 	 
	 	 	 	Name:  	 
	 	 	 	Title:  	 
	 

Accepted and Agreed to:

	 	 	 	 	 
	 	BERKSHIRE HATHAWAY INC.,

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]