Document:

EX-10.32

 Exhibit 10.32 

BIF III NORONHA AIV LLC 

- and - 
 BIP NORONHA
AIV LLC 
 - and - 

BROOKFIELD INFRASTRUCTURE CORPORATION 

FORM OF VOTING AGREEMENT 

Effective ●, 2020 

 TABLE OF CONTENTS 

 

					
	 ARTICLE 1 INTERPRETATION
	  	 	2	 
		
	 1.1 Definitions
	  	 	2	 
	 1.2 Headings and Table of Contents
	  	 	3	 
	 1.3 Interpretation
	  	 	3	 
	 1.4 Invalidity of Provisions
	  	 	4	 
	 1.5 Entire Agreement
	  	 	4	 
	 1.6 Waiver Amendment
	  	 	4	 
	 1.7 Governing Law
	  	 	5	 
		
	 ARTICLE 2 VOTING
	  	 	5	 
		
	 2.1 Voting at the Direction of BIPC
	  	 	5	 
	 2.2 General Guidelines
	  	 	6	 
	 2.3 Standard of Care
	  	 	6	 
		
	 ARTICLE 3 REPRESENTATIONS AND WARRANTIES
	  	 	6	 
		
	 3.1 Representations and Warranties of BIF III AIV
	  	 	6	 
	 3.2 Representations and Warranties of BIP AIV
	  	 	7	 
	 3.3 Representations and Warranties of BIPC
	  	 	7	 
		
	 ARTICLE 4 TERMINATION
	  	 	8	 
		
	 4.1 Term
	  	 	8	 
	 4.2 Termination
	  	 	8	 
		
	 ARTICLE 5 GENERAL PROVISIONS
	  	 	8	 
		
	 5.1 Assignment
	  	 	8	 
	 5.2 Enurement
	  	 	9	 
	 5.3 Notices
	  	 	9	 
	 5.4 Further Assurances
	  	 	10	 
	 5.5 Counterparts
	  	 	10	 

  
 - i - 

 VOTING AGREEMENT 

THIS AGREEMENT made effective as of the ● day of ●, 2020. 

AMONG: 
 BIF III NORONHA AIV LLC 

 (“BIF III AIV”) 

- and - 
 BIP NORONHA AIV LLC

 (“BIP AIV”) 

- and - 
 BROOKFIELD
INFRASTRUCTURE CORPORATION 
 (“BIPC”) 

RECITALS: 
  

	A.	 WHEREAS, BIF III AIV and BIP AIV own approximately 74.69% and 25.31%, respectively, of the limited
liability company interests (the “LLC Interests”) of ValveCo (BIII) LLC (“ValveCo”); 

  

	B.	 AND WHEREAS, ValveCo has entered into the Master Governance Agreement with each of PipeCo (B) LLC,
GasCo (S) LLC and LineCo (C) LLC (together with ValveCo, collectively, the “Companies”), which governs, among other things, certain voting arrangements relating thereto; 

 

	C.	 AND WHEREAS, that certain voting agreement by and among Brookfield Infrastructure Partners L.P.
(“BIP”), BIF III AIV and BIP AIV, dated April 4, 2017 is being terminated effective as of the date hereof upon BIP ceasing to own, directly or indirectly, through wholly-owned Affiliates of BIP or Brookfield Infrastructure
L.P., any interest in ValveCo pursuant to Section 4.2 thereof; 

  

	D.	 AND WHEREAS, BIF III AIV and BIP AIV have each determined that it is necessary and advisable for BIPC or
BIPC’s designated Affiliates, each an affiliate of BIF III AIV and BIP AIV, to have control over the voting of the LLC Interests and voting interests of the Companies; 

 

	E.	 AND WHEREAS, BIF III AIV, BIP AIV and BIPC wish to enter into this Agreement to govern their
relationship with respect to the voting of the LLC Interests and voting interests of the Companies; 

 NOW
THEREFORE, effective as of the Effective Date, in consideration of one dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties covenant and agree, each with the other, as
follows: 

 ARTICLE 1 

INTERPRETATION 
 1.1 Definitions

 In this Agreement, except where the context otherwise requires, the following terms will have the following meanings: 

 

	 	(a)	 “Affiliate” means with respect to a Person, any other Person that, directly or indirectly,
through one or more intermediaries, Controls or is Controlled by such Person, or is under common Control of a third Person; 

  

	 	(b)	 “Agreement” means this Voting Agreement; 

 

	 	(c)	 “BIF III Funds” has the meaning ascribed thereto in Section 2.3. 

 

	 	(d)	 “BIF III GP” has the meaning ascribed thereto in Section 2.3. 

 

	 	(e)	 “Business Day” means every day except a Saturday or Sunday, or a day which is a statutory or
civic holiday in the State of Delaware; 

  

	 	(f)	 “Control” means the control by one Person of another Person in accordance with the following:
a Person (“A”) controls another Person (“B”) where A has the power to determine the management and policies of B by contract or status (for example, the status of A being the general partner or the manager of B) or by virtue of
the beneficial ownership of or control over a majority of the voting interests in B; and, for greater certainty and without limitation, if A owns or has control over shares or other securities to which are attached more than 50% of the votes
permitted to be cast in the election of directors to the Governing Body of B or A is the general partner of B, a limited partnership, then in each case A Controls B for this purpose; and the term “Controlled” has the corresponding
meaning; 

  

	 	(g)	 “Effective Date” means ●, 2020; 

 

	 	(h)	 “Governing Body” means: (i) with respect to a corporation or limited company, the board
of directors of such corporation or limited company; (ii) with respect to a limited liability company, the manager(s), director(s) or managing partner(s) of such limited liability company; (iii) with respect to a partnership, the board,
committee or other body of each general partner or managing partner of such partnership that serves a similar function (or if any such general partner or managing partner is itself a partnership, the board, committee or other body of such general or
managing partner’s general or managing partner that serves a similar function); and (iv) with respect to any other Person, the body of such Person that serves a similar function, and in the case of each of (i) through (iv) includes
any committee or other subdivision of such body and any Person to whom such body has delegated any power or authority, including any officer or managing director; 

  
 - 2 - 

	 	(i)	 “Master Governance Agreement” means that certain Master Governance Agreement, dated as of
April 4, 2017, among the Companies and other parties thereto from time to time, as the same may be amended or modified from time to time; 

  

	 	(j)	 “Person” means any natural person, partnership, limited partnership, limited liability
partnership, joint venture, syndicate, sole proprietorship, company or corporation (with or without share capital), limited liability corporation, unlimited liability company, joint stock company, unincorporated association, trust, trustee,
executor, administrator or other legal personal representative, regulatory body or agency, government or governmental agency, authority or entity however designated or constituted, and pronouns have a similarly extended meaning; and

  

	 	(k)	 “Term” has the meaning ascribed thereto in Section 4.1. 

1.2 Headings and Table of Contents 
 The
inclusion of headings and a table of contents in this Agreement are for convenience of reference only and will not affect the construction or interpretation hereof. 

1.3 Interpretation 
 In this Agreement,
unless the context otherwise requires: 
  

	 	(a)	 words importing the singular shall include the plural and vice versa, words importing gender shall include all
genders or the neuter, and words importing the neuter shall include all genders; 

  

	 	(b)	 the words “include”, “includes”, “including”, or any variations thereof, when
following any general term or statement, are not to be construed as limiting the general term or statement to the specific items or matters set forth or to similar items or matters, but rather as referring to all other items or matters that could
reasonably fall within the broadest possible scope of the general term or statement; 

  

	 	(c)	 references to any Person include such Person’s successors and permitted assigns; 

 

	 	(d)	 except as otherwise provided in this Agreement, any reference in this Agreement to a statute, regulation,
policy, rule or instrument shall include, and shall be deemed to be a reference also to, all rules and regulations made under such statute, in the case of a statute, all amendments made to such statute, regulation, policy, rule or instrument, and
any statute, regulation, policy, rule or instrument that may be passed which has the effect of supplementing or superseding the statute, regulation, policy, rule or instrument so referred to; 

 

	 	(e)	 any reference to this Agreement or any other agreement, document or instrument shall be construed as a
reference to this Agreement or, as the case may be, such other agreement, document or instrument as the same may have been, or may from time to time be, amended, varied, replaced, amended and restated, supplemented or otherwise modified;

  
 - 3 - 

	 	(f)	 in the event that any day on which any amount is to be determined or any action is required to be taken
hereunder is not a Business Day, then such amount shall be determined or such action shall be required to be taken at or before the requisite time on the next succeeding day that is a Business Day; and 

 

	 	(g)	 except where otherwise expressly provided, all amounts in this Agreement are stated and shall be paid in U.S.
currency. 

 1.4 Invalidity of Provisions 

Each provision contained in this Agreement is distinct and severable and a declaration of invalidity or unenforceability of any such provision
or part thereof by a court of competent jurisdiction will not affect the validity or enforceability of any other provision hereof. To the fullest extent permitted by applicable law, the parties waive any provision of law which renders any provision
of this Agreement invalid or unenforceable in any respect. The parties will engage in good faith negotiations to replace any provision which is declared invalid or unenforceable with a valid and enforceable provision, the economic effect of which
comes as close as possible to that of the invalid or unenforceable provision which it replaces. 
 1.5 Entire Agreement 

This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement. There are no
warranties, conditions, or representations (including any that may be implied by statute) and there are no agreements in connection with such subject matter except as specifically set forth or referred to in this Agreement. No reliance is placed on
any warranty, representation, opinion, advice or assertion of fact made either prior to, contemporaneous with, or after entering into this Agreement, or any amendment or supplement hereto, by any party to this Agreement or its directors, officers,
employees or agents, to any other party to this Agreement or its directors, officers, employees or agents, except to the extent that the same has been reduced to writing and included as a term of this Agreement, and none of the parties to this
Agreement has been induced to enter into this Agreement or any amendment or supplement by reason of any such warranty, representation, opinion, advice or assertion of fact. Accordingly, there will be no liability, either in tort or in contract,
assessed in relation to any such warranty, representation, opinion, advice or assertion of fact, except to the extent contemplated above. 
 1.6 Waiver
Amendment 
 Except as expressly provided in this Agreement, no amendment or waiver of this Agreement will be binding unless executed in
writing by the party to be bound thereby. No waiver of any provision of this Agreement will constitute a waiver of any other provision nor will any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly
provided. A party’s failure or delay in exercising any right under this Agreement will not operate as a waiver of that right. A single or partial exercise of any right will not preclude a party from any other or further exercise of that right
or the exercise of any other right. 

  
 - 4 - 

 1.7 Governing Law 

This Agreement, all questions concerning the construction, interpretation and validity of this Agreement, the rights and obligations of the
parties hereto, all claims or causes of action that may be based upon, arise out of or related to this Agreement and the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon or arising out of or
related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter this Agreement) shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving
effect to any choice or conflict of law provision or rule (whether in New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than New York. Each party irrevocably attorns and submits to the
exclusive jurisdiction of the courts situated in the City of New York in the Borough of Manhattan and waives objection to the venue of any proceeding in such court or any argument that such court provides an inconvenient forum. 

ARTICLE 2 
 VOTING

 2.1 Voting at the Direction of BIPC 

Each of BIF III AIV and BIP AIV agrees that it will vote (and it will cause any other entity that it Controls to vote) or otherwise exercise
rights with respect to the LLC Interests and the voting interests of the Companies in accordance with the direction of BIPC (or its designated Affiliates) with respect to the approval or rejection of the following matters relating to ValveCo and the
other Companies (as applicable): 
  

	 	(a)	 in favor of the election of a majority of directors (or their equivalent, if any) approved by BIPC (or its
designated Affiliates); 

  

	 	(b)	 any sale of all or substantially all of its assets; 

 

	 	(c)	 any merger, amalgamation, consolidation, business combination or other material corporate transaction, except
in connection with any internal reorganization that does not result in a change of control; 

  

	 	(d)	 any plan or proposal for a complete or partial liquidation or dissolution, or any reorganization or any case,
proceeding or action seeking relief under any existing laws or future laws relating to bankruptcy or insolvency; 

  

	 	(e)	 any amendment to the limited liability company agreement of ValveCo or the Master Governance Agreement; and

  

	 	(f)	 any commitment or agreement to do any of the foregoing. 

  
 - 5 - 

 2.2 General Guidelines 

For purposes of Section 2.1, BIPC (or its designated Affiliates) may provide written direction to BIF III AIV and BIP AIV with respect to
the approval or rejection of any matter in the form of general guidelines, policies, procedures, delegation or similar practices in which case no approval or direction will be required by BIF III AIV or BIP AIV. Any such general guidelines,
policies, procedures, delegations or similar practices may be modified by BIPC or its designated Affiliates in its discretion, as applicable, in accordance with the terms hereof. 

2.3 Standard of Care 
 BIPC agrees that it
(or its designated Affiliates) will exercise its powers and discharge its rights under this Agreement having regard to the standard of care applicable to Brookfield Infrastructure Fund III GP LLC (“BIF III GP”) in its capacity as
general partner of the entities that comprise the Brookfield Infrastructure Fund III family of funds (“BIF III Funds”), taking into account the fiduciary duties owed by BIF III GP to the investors of the BIF III Funds as a whole (as
such fiduciaries duties may be modified by the BIF III Funds governing documents). 
 ARTICLE 3 

REPRESENTATIONS AND WARRANTIES 
 3.1
Representations and Warranties of BIF III AIV 
 BIF III AIV hereby represents and warrants to BIPC and BIP AIV that: 

 

	 	(a)	 it is validly organized and existing under the relevant laws governing its formation and existence;

  

	 	(b)	 it has the power, capacity and authority to enter into this Agreement and to perform its duties and obligations
hereunder; 

  

	 	(c)	 it has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

  

	 	(d)	 the execution and delivery of this Agreement by it and the performance by it of its obligations hereunder do
not and will not contravene, breach or result in any default under its articles, by-laws, constituent documents or other organizational documents; 

 

	 	(e)	 no authorization, consent or approval, or filing with or notice to any Person is required in connection with
the execution, delivery or performance by it of this Agreement; and 

  

	 	(f)	 this Agreement constitutes a valid and legally binding obligation of it enforceable against it in accordance
with its terms, subject to: (i) applicable bankruptcy, insolvency, moratorium, fraudulent conveyance, reorganization and other laws of general application limiting the enforcement of creditors’ rights and remedies generally; and
(ii) general principles of equity, including standards of materiality, good faith, fair dealing and reasonableness, equitable defenses and limits as to the availability of equitable remedies, whether such principles are considered in a
proceeding at law or in equity. 

  
 - 6 - 

 3.2 Representations and Warranties of BIP AIV 

BIP AIV hereby represents and warrants to BIF III AIV and BIPC that: 
  

	 	(a)	 it is validly organized and existing under the relevant laws governing its formation and existence;

  

	 	(b)	 it has the power, capacity and authority to enter into this Agreement and to perform its duties and obligations
hereunder; 

  

	 	(c)	 it has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

  

	 	(d)	 the execution and delivery of this Agreement by it and the performance by it of its obligations hereunder do
not and will not contravene, breach or result in any default under its articles, by-laws, constituent documents or other organizational documents; 

 

	 	(e)	 no authorization, consent or approval, or filing with or notice to any Person is required in connection with
the execution, delivery or performance by it of this Agreement; and 

  

	 	(f)	 this Agreement constitutes a valid and legally binding obligation of it enforceable against it in accordance
with its terms, subject to (i) applicable bankruptcy, insolvency, moratorium, fraudulent conveyance, reorganization and other laws of general application limiting the enforcement of creditors’ rights and remedies generally, and
(ii) general principles of equity, including standards of materiality, good faith, fair dealing and reasonableness, equitable defenses and limits as to the availability of equitable remedies, whether such principles are considered in a
proceeding at law or in equity. 

 3.3 Representations and Warranties of BIPC 

BIPC hereby represents and warrants to BIF III AIV and BIP AIV that: 
  

	 	(a)	 it is validly organized and existing under the relevant laws governing its formation and existence;

  

	 	(b)	 it has the power, capacity and authority to enter into this Agreement and to perform its duties and obligations
hereunder; 

  

	 	(c)	 it has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

  

	 	(d)	 the execution and delivery of this Agreement and the performance by it of its obligations hereunder do not and
will not contravene, breach or result in any default under its articles, by-laws, constituent documents or other organizational documents; 

  
 - 7 - 

	 	(e)	 no authorization, consent or approval, or filing with or notice to any Person is required in connection with
the execution, delivery or performance by it of this Agreement; and 

  

	 	(f)	 this Agreement constitutes a valid and legally binding obligation of it enforceable against it in accordance
with its terms, subject to: (i) applicable bankruptcy, insolvency, moratorium, fraudulent conveyance, reorganization and other laws of general application limiting the enforcement of creditors’ rights and remedies generally; and
(ii) general principles of equity, including standards of materiality, good faith, fair dealing and reasonableness, equitable defenses and limits as to the availability of equitable remedies, whether such principles are considered in a
proceeding at law or in equity. 

 ARTICLE 4 

TERMINATION 
 4.1 Term 

The term of this Agreement (“Term”) will begin on the Effective Date and will continue in full force and effect until
terminated in accordance with Section 4.2. 
 4.2 Termination 

The rights and obligations of the parties to this Agreement will terminate and no longer be of any effect: (i) at such time that BIPC
ceases to own, directly or indirectly, through its wholly-owned Affiliates, any interest in ValveCo; (ii) upon 30 days’ notice given by BIPC or its designated Affiliates; or (iii) at such time that any party provides notice that such
party has reasonably determined that, as a result of applicable law, rule or regulation and through no fault of its own, continued participation in this Agreement would have a material adverse effect on such party. 

ARTICLE 5 
 GENERAL
PROVISIONS 
 5.1 Assignment 
  

	 	(a)	 None of the rights or obligations hereunder shall be assignable or transferable by any party without the prior
written consent of the other party provided that BIPC may delegate its approval rights under Section 2.1 of this Agreement to any wholly-owned Affiliate of BIPC, without obtaining prior written consent of each of BIF III AIV and BIP AIV.

  

	 	(b)	 Any purported assignment of this Agreement in violation of this Section 5.1 shall be null and void.

  
 - 8 - 

 5.2 Enurement 

This Agreement will enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. 

5.3 Notices 
 Any notice or other
communication required or permitted to be given hereunder will be in writing and will be given by prepaid first-class mail, by facsimile or other means of electronic communication or by hand-delivery as hereinafter provided. Any such notice or other
communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lockout or otherwise, will be deemed to have been received on the fourth Business Day after the post-marked
date thereof, or if sent by facsimile or other means of electronic communication, will be deemed to have been received on the Business Day following the sending, or if delivered by hand will be deemed to have been received at the time it is
delivered to the applicable address noted below either to the individual designated below or to an individual at such address having apparent authority to accept deliveries on behalf of the addressee. Notice of change of address will also be
governed by this section. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications will be delivered by hand or sent by facsimile or
other means of electronic communication and will be deemed to have been received in accordance with this section. Notices and other communications will be addressed as follows: 

 

	 	(a)	 if to BIF III AIV: 

Brookfield Place 
 250 Vesey
Street, 15th Floor 
 New York, New York 10281-1023 

Attention: Fred Day 
 Facsimile: 212-417-7182 
  

	 	(b)	 if to BIP AIV: 

Brookfield Place 
 250 Vesey
Street, 15th Floor 
 New York, New York 10281-1023 

Attention: Fred Day 
 Facsimile: 212-417-7182 
  

	 	(c)	 if to BIPC: 

Brookfield Infrastructure Corporation 

P.O. Box 11117 

  
 - 9 - 

 1500 Royal Centre, 1055 West Georgia Street 

Vancouver, British Columbia V6E 4N7 

Attention:    Secretary 
 or
to such other addresses as a party may from time to time notify the others in accordance with this Section 5.5. 
 5.4 Further Assurances 

Each of the parties hereto will promptly do, make, execute or deliver, or cause to be done, made, executed or delivered, all such further acts,
documents and things as the other party hereto may reasonably require from time to time for the purpose of giving effect to this Agreement and will use reasonable efforts and take all such steps as may be reasonably within its power to implement to
their full extent the provisions of this Agreement. 
 5.5 Counterparts 

This Agreement may be signed in counterparts and each of such counterparts will constitute an original document and such counterparts, taken
together, will constitute one and the same instrument. 
 [Remainder of page was intentionally left blank Signature page follows.]

  
 - 10 - 

 IN WITNESS WHEREOF the parties have executed this Agreement as of the Effective Date. 

 

			
	BIF III NORONHA AIV LLC
		
	By:	 	  

		 	 Name:
 Title:

  

			
	BIP NORONHA AIV LLC
		
	By:	 	  

		 	 Name:
 Title:

  

			
	 BROOKFIELD INFRASTRUCTURE

CORPORATION

		
	By:	 	
                     

		 	 Name:
 Title:

 (Signature Page to NTS Voting Agreement)vslr-ex42_215.htm

Exhibit 4.2

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

Vivint Solar, Inc. has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock, par value $0.01 per share.

The general terms and provisions of our common stock are summarized below. This summary does not purport to be complete and is subject to, and qualified in its entirety by express reference to, the provisions of our certificate of incorporation and bylaws, each of which is included as an exhibit to the Annual Report on Form 10-K to which this description is an Exhibit, and each of which may be amended from time to time. We encourage you to read our certificate of incorporation and bylaws and the applicable provisions of the General Corporation Law of the State of Delaware, or DGCL, for additional information.

Our authorized capital stock consists of 1,010,000,000 shares, with a par value of $0.01 per share, of which: 

 

	
 
	
•
	
1,000,000,000 shares are designated as common stock; and 

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

Common Stock 

Holders of our common stock are entitled to one vote for each share held of record on all matters on which stockholders are entitled to vote generally, including the election or removal of directors. The holders of our common stock do not have cumulative voting rights in the election of directors. 

Upon our liquidation, dissolution or winding up and after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of our common stock will be entitled to receive pro rata our remaining assets available for distribution. Holders of our common stock do not have preemptive, subscription, redemption or conversion rights. The common stock is not subject to further calls or assessment by us. There are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of our common stock are fully paid and non-assessable. The rights, powers, preferences and privileges of holders of our common stock are subject to those of the holders of any shares of our preferred stock we may authorize and issue in the future. 

Preferred Stock 

Our certificate of incorporation authorizes our board of directors to designate and issue up to 10,000,000 shares of preferred stock in one or more series. Unless required by law or by the New York Stock Exchange, the authorized shares of preferred stock will be available for issuance without further action by our stockholders. Our board of directors is able to determine, with respect to any series of preferred stock, the powers, preferences and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions thereof, including, without limitation: 

	
 
	
•
	
the designation of the series; 

 

	
 
	
•
	
the number of shares of the series, which our board of directors may, except where otherwise provided in the preferred stock designation, increase (but not above the total number of authorized shares of the class) or decrease (but not below the number of shares then outstanding); 

 

	
 
	
•
	
whether dividends, if any, will be cumulative or non-cumulative and the dividend rate of the series; 

 

	
 
	
•
	
the dates at which dividends, if any, will be payable; 

 

	
 
	
•
	
the redemption rights and price or prices, if any, for shares of the series; 

 

 

 

	
 
	
•
	
the terms and amounts of any sinking fund provided for the purchase or redemption of shares of the series; 

 

	
 
	
•
	
the amounts payable on shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of our company; 

 

	
 
	
•
	
whether the shares of the series will be convertible into shares of any other class or series, or any other security, of our company or any other entity, and, if so, the specification of the other class or series or other security, the conversion price or prices or rate or rates, any rate adjustments, the date or dates as of which the shares will be convertible and all other terms and conditions upon which the conversion may be made; 

 

	
 
	
•
	
restrictions on the issuance of shares of the same series or of any other class or series; and 

 

	
 
	
•
	
the voting rights, if any, of the holders of the series. 

We could issue a series of preferred stock that could, depending on the terms of the series, impede or discourage an acquisition attempt or other transaction that some, or a majority, of the holders of our common stock might believe to be in their best interests or in which the holders of our common stock might receive a premium for their common stock over the market price of the common stock. Additionally, the issuance of preferred stock may adversely affect the holders of our common stock by restricting dividends on the common stock, diluting the voting power of the common stock or subordinating the liquidation rights of the common stock. As a result of these or other factors, the issuance of preferred stock could have an adverse impact on the market price of our common stock.

Anti-Takeover Effects of Delaware Law and Our Certificate of Incorporation and Bylaws

Our certificate of incorporation and bylaws and the DGCL contain provisions, which are summarized in the following paragraphs, that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors. These provisions are intended to avoid costly takeover battles, reduce our vulnerability to a hostile change of control and enhance the ability of our board of directors to maximize stockholder value in connection with any unsolicited offer to acquire us. However, these provisions may have an anti-takeover effect and may delay, deter or prevent a merger or acquisition of our company by means of a tender offer, a proxy contest or other takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the prevailing market price for the shares of common stock held by stockholders. 

Undesignated Preferred Stock 

As discussed above, our board of directors has the ability to designate and issue preferred stock with voting or other rights or preferences that could deter hostile takeovers or delay changes in our control or management. 

Board Classification 

Our certificate of incorporation provides that our board of directors is divided into three classes of directors, with the classes to be as nearly equal in number as possible, and with the directors serving three-year terms. As a result, approximately one-third of our board of directors is elected each year. The classification of directors has the effect of making it more difficult for stockholders to change the composition of our board of directors. Our certificate of incorporation and bylaws provide that, subject to any rights of holders of preferred stock to elect additional directors under specified circumstances, the number of directors will be fixed from time to time exclusively pursuant to a resolution adopted by the board of directors with a maximum of 15 directors. 

Business Combinations 

We have opted out of Section 203 of the DGCL; however, our certificate of incorporation contains similar provisions providing that we may not engage in certain “business combinations” with any “interested stockholder” for a three-year period following the time that the stockholder became an interested stockholder, unless: 

	
 
	
•
	
prior to such time, our board of directors approved either the business combination or the transaction which 

2

 

 

	
 
		
resulted in the stockholder becoming an interested stockholder; 

 

	
 
	
•
	
upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding certain shares; or 

 

	
 
	
•
	
at or subsequent to that time, the business combination is approved by our board of directors and by the affirmative vote of holders of at least 66 2/3% of our outstanding voting stock that is not owned by the interested stockholder. 

Generally, a “business combination” includes a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. Subject to certain exceptions, an “interested stockholder” is a person who, together with that person’s affiliates and associates, owns, or within the previous three years owned, 15% or more of our outstanding voting stock. For purposes of this section only, “voting stock” has the meaning given to it in Section 203 of the DGCL. 

Under certain circumstances, this provision will make it more difficult for a person who would be an “interested stockholder” to effect various business combinations with us for a three-year period. This provision may encourage companies interested in acquiring our company to negotiate in advance with our board of directors because the stockholder approval requirement would be avoided if our board of directors approves either the business combination or the transaction which results in the stockholder becoming an interested stockholder. These provisions also may have the effect of preventing changes in our board of directors and may make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests. 

Our certificate of incorporation provides that the Blackstone Group L.P., or Blackstone, and its affiliates, and any of their respective direct or indirect transferees and any group as to which such persons are parties, do not constitute “interested stockholders” for purposes of this provision. 

Removal of Directors; Vacancies 

Under the DGCL, unless otherwise provided in our certificate of incorporation, directors serving on a classified board may be removed by the stockholders only for cause. Our certificate of incorporation provides that directors may be removed with or without cause upon the affirmative vote of a majority in voting power of all outstanding shares of stock entitled to vote thereon, voting together as a single class; provided, however, at any time when Blackstone and its affiliates beneficially own, in the aggregate, less than 30% in voting power of the stock of our company entitled to vote generally in the election of directors, directors may only be removed for cause, and only by the affirmative vote of holders of at least 66 2/3% in voting power of all the then-outstanding shares of stock of our company entitled to vote thereon, voting together as a single class. In addition, our certificate of incorporation also provides that, subject to the rights granted to one or more series of preferred stock then outstanding or the rights granted under the stockholders agreement with affiliates of Blackstone, any newly created directorship on our board of directors that results from an increase in the number of directors and any vacancies on our board of directors will be filled only by the affirmative vote of a majority of the remaining directors, even if less than a quorum, by a sole remaining director or by the stockholders; provided, however, at any time when Blackstone and its affiliates beneficially own, in the aggregate, less than 30% in voting power of our stock entitled to vote generally in the election of directors, any newly created directorship on the board of directors that results from an increase in the number of directors and any vacancy occurring in the board of directors may only be filled by a majority of the directors then in office, although less than a quorum or by a sole remaining director (and not by the stockholders). 

No Cumulative Voting 

Under Delaware law, the right to vote cumulatively does not exist unless the certificate of incorporation specifically authorizes cumulative voting. Our certificate of incorporation does not authorize cumulative voting. Therefore, stockholders holding a majority in voting power of the shares of our stock entitled to vote generally in the election of directors will be able to elect all our directors. 

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Special Stockholder Meetings 

Our certificate of incorporation provides that special meetings of our stockholders may be called at any time only by or at the direction of the board of directors or the chairman of the board of directors; provided, however, at any time when Blackstone and its affiliates beneficially own, in the aggregate, at least 30% in voting power of the stock of our company entitled to vote generally in the election of directors, special meetings of our stockholders shall also be called by the board of directors or the chairman of the board of directors at the request of Blackstone and its affiliates. Our bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers or changes in control or management of our company. 

Requirements for Advance Notification of Director Nominations and Stockholder Proposals 

Our bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. For any matter to be “properly brought” before a meeting, a stockholder has to comply with advance notice requirements and provide us with certain information. Generally, to be timely, a stockholder’s notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Our bylaws also specify requirements as to the form and content of a stockholder’s notice. Our bylaws allow the chairman of the meeting at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings that may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions do not apply to Blackstone and its affiliates so long as the stockholders agreement remains in effect. These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to influence or obtain control of our company. 

Stockholder Action by Written Consent 

Pursuant to Section 228 of the DGCL, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of our stock entitled to vote thereon were present and voted, unless our certificate of incorporation provides otherwise. Our certificate of incorporation precludes stockholder action by written consent at any time when Blackstone and its affiliates beneficially own, in the aggregate, less than 30% in voting power of the stock of our company entitled to vote generally in the election of directors. 

Supermajority Provisions 

Our certificate of incorporation and bylaws provide that our board of directors is expressly authorized to make, alter, amend, change, add to, rescind or repeal, in whole or in part, our bylaws without a stockholder vote in any matter not inconsistent with Delaware law and our certificate of incorporation. For as long as Blackstone and its affiliates beneficially own, in the aggregate, at least 30% in voting power of the stock of our company entitled to vote generally in the election of directors, any amendment, alteration, rescission or repeal of our bylaws by our stockholders will require the affirmative vote of a majority in voting power of the outstanding shares of our stock present in person or represented by proxy at the meeting of stockholders and entitled to vote on such amendment, alteration, change, addition, rescission or repeal. At any time when Blackstone and its affiliates beneficially own, in the aggregate, less than 30% in voting power of all outstanding shares of the stock of our company entitled to vote generally in the election of directors, any amendment, alteration, rescission or repeal of our bylaws by our stockholders will require the affirmative vote of the holders of at least 66 2/3% in voting power of all the then-outstanding shares of stock of our company entitled to vote thereon, voting together as a single class. 

The DGCL provides generally that the affirmative vote of a majority of the outstanding shares entitled to vote thereon, voting together as a single class, is required to amend a corporation’s certificate of incorporation, unless the certificate of incorporation requires a greater percentage. Our certificate of incorporation provides that at any time when Blackstone and its affiliates beneficially own, in the aggregate, less than 30% in voting power of the stock of 

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our company entitled to vote generally in the election of directors, the following provisions in our certificate of incorporation may be amended, altered, repealed or rescinded only by the affirmative vote of the holders of at least 66 2/3% in voting power of all the then-outstanding shares of stock of our company entitled to vote thereon, voting together as a single class: 

	
 
	
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the provision requiring a 66 2/3% supermajority vote for stockholders to amend our bylaws; 

 

	
 
	
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the provisions providing for a classified board of directors (the election and term of our directors); 

 

	
 
	
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the provisions regarding resignation and removal of directors; 

 

	
 
	
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the provisions regarding competition and corporate opportunities; 

 

	
 
	
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the provisions regarding entering into business combinations with interested stockholders; 

 

	
 
	
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the provisions regarding stockholder action by written consent; 

 

	
 
	
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the provisions regarding calling special meetings of stockholders; 

 

	
 
	
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the provisions regarding filling vacancies on our board of directors and newly created directorships; 

 

	
 
	
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the provisions eliminating monetary damages for breaches of fiduciary duty by a director; and 

 

	
 
	
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the amendment provision requiring that the above provisions be amended only with a 66 2/3% supermajority vote. 

The combination of the classification of our board of directors, the lack of cumulative voting and the supermajority voting requirements 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. 

These provisions may have the effect of deterring hostile takeovers or delaying or preventing changes in control of us or our management, such as a merger, reorganization or tender offer. 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 certain types of transactions that may involve an actual or threatened acquisition of our company. These provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal. The provisions are also intended 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, as a consequence, they also may inhibit fluctuations in the market price of our shares that could result from actual or rumored takeover attempts. 

 

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