Document:

syke-ex42_56.htm

Exhibit 4.2

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Sykes Enterprises, Incorporated  (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act, as amended: our Common Stock, $0.01 par value per share (“Common Stock”).

The following description of our Common Stock, our preferred stock and certain provisions of our Articles of Incorporation, as amended (the “Articles of Incorporation”) and Bylaws, as amended (the “Bylaws”) is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Articles and Bylaws, each of which is incorporated by reference as an exhibit to our most recent Annual Report on Form 10-K. We encourage you to read our Articles of Incorporation, our Bylaws and the applicable provisions of the Florida Business Corporation Act (the “FBCA”) for additional information.

GENERAL        

The authorized capital stock of the Company consists of 200,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock, $0.01 par value per share, issuable in one or more series by our Board of Directors (the "Preferred Stock").  As of February 27, 2019, there are no shares of Preferred Stock issued and outstanding.  The outstanding shares of our Common Stock are fully paid and nonassessable.

COMMON STOCK        

Each holder of our Common Stock is entitled to one vote for each share held of record on all matters submitted to a vote of shareholders, including the election of directors, subject to the voting rights of any preferred stock then outstanding. Shareholders do not have the right to cumulate their votes in elections of directors. Directors are to be elected by a majority of the votes cast by the holders of Common Stock entitled to vote and present in person or represented by proxy, provided that if the number of nominees standing for election at any meeting of the shareholders exceeds the number of directors to be elected, the directors will be elected by a plurality of the votes cast. Except as provided by law, all other matters are to be decided by a vote of a majority of votes cast by the holders of Common Stock entitled to vote and present in person or represented by proxy.

Holders of our Common Stock are entitled to receive dividends on a pro rata basis when and as declared by our Board of Directors out of funds legally available for that purpose, provided that if any shares of preferred stock are at the time outstanding, the payment of dividends on Common Stock or other distributions (including purchases of Common Stock) may be subject to the declaration and payment of full cumulative dividends, and the absence of overdue amounts in any mandatory sinking fund, on outstanding shares of preferred stock.

Upon a liquidation of the Company, holders of our Common Stock will be entitled to a pro rata distribution of the assets of the Company, after payment of all debts and liabilities of the Company, and subject to any preferential amount payable to holders of any class of stock of the Company having preference over the Common Stock, if any. 

Holders of Common Stock have no conversion, preemptive or other rights to subscribe for additional shares or other securities, and there are no redemption or sinking fund provisions with respect to such shares. There are no restrictions on transfer of our Common Stock, except as provided by law. There are no provisions discriminating against existing or prospective holders of our Common Stock as a result of any shareholder owning a substantial amount of our Common Stock.

Our Common Stock is traded on Nasdaq Global Select Market under the trading symbol “SYKE.”

PREFERRED STOCK        

The Company's Articles of Incorporation permit our Board of Directors to issue shares of Preferred Stock in one or more series, and to fix the relative rights, preferences, and limitations of each series without any further vote or action by our shareholders. Among such rights, preferences, and limitations are dividend rights and rates, terms of redemption 

(including sinking fund provisions), redemption price or prices, voting rights, conversion rights and liquidation preferences of the shares constituting such series. Any issuance of Preferred Stock with a dividend preference over our Common Stock could adversely affect the dividend rights of holders of Common Stock. 

CERTAIN ANTI-TAKEOVER EFFECTS OF THE COMPANY'S ARTICLES OF INCORPORATION        

Certain provisions of our Articles of Incorporation and our Bylaws may have the effect of delaying, deferring or preventing a change in control of the Company.

	
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Our Articles of Incorporation provide for a classified Board of Directors. The directors are divided into three classes, as nearly equal in number as possible. The directors are elected for three-year terms, which are staggered so that the terms of one-third of the directors expire each year. 

	
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Our Articles of Incorporation permit removal of directors only for cause by the shareholders of the Company at a special meeting of the shareholders called for such a purpose by the affirmative vote of at least two-thirds of the outstanding shares of Common Stock.

	
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Our Bylaws provide that any vacancies on the Board of Directors may be filled by the affirmative vote of a majority of the remaining directors though less than a quorum. 

	
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Our Articles of Incorporation establish an advance notice procedure for the nomination of candidates for election as directors, as well as for other shareholder proposals to be considered at shareholders' meetings. 

	
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Our Articles of Incorporation provide that any action required or permitted to be taken by the shareholders must be effected at a duly called annual or special meeting and may not be effected by any consent in writing of such shareholders, unless such consent is unanimous.  

	
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Our Articles of Incorporation contains provisions requiring the affirmative vote of the holders of at least two-thirds of the Common Stock to amend certain provisions thereof, including Article 4 (Board of Directors) and Article 5 (Action by Shareholders).        

The above-described provisions may have certain anti-takeover effects. Such provisions, in addition to the provisions of the FBCA referenced below and the possible issuance of preferred stock discussed above, may make it more difficult for other persons, without the approval of the Company's Board of Directors, to make a tender offer or acquisitions of substantial amounts of the Common Stock or to launch other takeover attempts that a shareholder might consider in such shareholder's best interests.   

In addition, some of the provisions of the FBCA could have the effect of delaying, deferring or preventing a change in control.       

TRANSFER AGENT AND REGISTRAR       

The Company's transfer agent and registrar for the Common Stock is Computershare Investor Services.golfrightsagreementamend

                                                        EXECUTION VERSION                 AMENDMENT NO. 3 TO THE RIGHTS AGREEMENT         AMENDMENT NO. 3 TO THE RIGHTS AGREEMENT, dated as of February 26, 2020  (the “Amendment”) to the Rights Agreement dated as of April 9, 2013 (as amended by  Amendment No. 1 dated as of April 8, 2016, and further amended by Amendment No. 2 dated as  of April 8, 2019, as so amended, the “Rights Agreement”), between Gain Capital Holdings,  Inc., a Delaware corporation (the “Company”), and Broadridge Corporate Issuer Solutions, Inc.,  a Delaware corporation, as Rights Agent (the “Rights Agent”).  Capitalized terms used, but not  otherwise defined herein, shall have the respective meanings ascribed to such terms in the Rights  Agreement.         WHEREAS, the Company proposes to enter into an Agreement and Plan of Merger (as it  may be amended from time to time, the “Merger Agreement”), by and among INTL FCStone  Inc., a Delaware corporation (“INTL”), Golf Merger Sub I Inc., a Delaware corporation and  wholly owned subsidiary of INTL (“Merger Sub”), and the Company, providing for the merger  of Merger Sub with and into the Company, with the Company continuing as the surviving  corporation (the “Merger”);         WHEREAS, the Board of Directors of the Company has determined that, in connection  with the execution of the Merger Agreement, it is necessary and desirable to amend the Rights  Agreement to exempt the Merger Agreement, the execution and delivery thereof, and the  transactions contemplated thereby, including, without limitation, the Merger and the entry into  and performance of the Voting and Support Agreements (as defined in the Merger Agreement),  from the application of the Rights Agreement, in each case as set forth in this Amendment;          WHEREAS, Section 24 of the Rights Agreement permits the Company to amend the  Rights Agreement in the manner provided therein at any time prior to the occurrence of a Section  9(a)(ii) Event; and         WHEREAS, no Section 9(a)(ii) Event has occurred as of the date hereof.         NOW, THEREFORE, the Rights Agreement is hereby amended as follows:         Section 1. Amendments to Rights Agreement.  The Rights Agreement is hereby  amended as follows:         (a)   Section 1 of the Rights Agreement is hereby amended as follows:                i) The definition of “Acquiring Person” is amended by adding a new subclause                 (v) at the end thereof as follows:                  “(v) “INTL, Merger Sub, or any of their respective Affiliates or Associates,                 either individually, collectively or in any combination, by virtue of, or as a                 result of, a Permitted Event.”                ii) The definition of “Beneficial Owner” is amended by adding the following at                 the end thereof:                                                                                   

 

   “Notwithstanding the foregoing, nothing in this definition shall cause INTL     or Merger Sub to be deemed the “Beneficial Owner” of, or to “beneficially     own” or to have “Beneficial Ownership” of, any securities by virtue of, or as     a result of, a Permitted Event.”     iii) The definition of “Distribution Date” is amended by adding the following at     the end thereof:      “Notwithstanding anything in this Rights Agreement to the contrary, a     Distribution Date shall not be deemed to have occurred by virtue of, or as a     result of, a Permitted Event or the public announcement thereof.”   iv) The definition of “Expiration Date” is amended and restated as follows:      ““Expiration Date” means the earlier of (i) immediately prior to the     Effective Time, but only if the Effective Time shall occur, (ii) the Final     Expiration Date and (iii) the time at which all Rights are redeemed as     provided in Section 20 or exchanged as provided in Section 21.”   v) The definition of “Stock Acquisition Date” is amended by adding the     following at the end thereof:      “Notwithstanding anything in this Rights Agreement to the contrary, a Stock     Acquisition Date shall not be deemed to have occurred by virtue of, or as a     result of, a Permitted Event or the public announcement thereof.”   vi) The following new defined terms are added in the appropriate alphabetical     order:       ““Effective Time” shall have the meaning ascribed to it in the Merger     Agreement.”      ““INTL” shall mean INTL FCStone Inc., a Delaware corporation.”       ““Merger Agreement” shall mean the Agreement and Plan of Merger, dated     February 26, 2020, as the same may be amended from time to time, by and     among the Company, INTL and Merger Sub, pursuant to which Merger Sub     will be merged with and into the Company.”      ““Merger Sub” shall mean Golf Merger Sub I Inc., a Delaware corporation     and a wholly owned subsidiary of INTL.”      ““Permitted Event” shall mean (i) the approval, execution, delivery, or     adoption of the Merger Agreement or the Voting and Support Agreements,     (ii) the performance of any obligation under the Merger Agreement or the     Voting and Support Agreements, or (iii) the consummation of any one or     more of the transactions contemplated by the Merger Agreement or the                              2                                                                     

 

               Voting and Support Agreements, including, without limitation, the Merger                 (as defined in the Merger Agreement).”                  ““Voting and Support Agreements” shall have the meaning ascribed to it in                 the Merger Agreement.”         (b)   Section 9 of the Rights Agreement is hereby amended by adding a new section (j)              at the end thereof as follows:                “Notwithstanding anything in this Rights Agreement to the contrary, a Section              9(a)(ii) Event shall not be deemed to have occurred by virtue of, or as a result of,              a Permitted Event.”         (c)   Section 11 of the Rights Agreement is hereby amended by adding a new section              (g) at the end thereof as follows:                “(g) Notwithstanding anything in this Rights Agreement to the contrary, this              Section 11 (including Section 11(a) and 11(c)) shall not apply to the Merger (as              defined in the Merger Agreement) or any other Permitted Event.”         (d)   Section 20 of the Rights Agreement is hereby amended by adding a new section              (c) at the end thereof as follows:                “(c) Notwithstanding anything in this Rights Agreement to the contrary,              immediately prior to the Effective Time, but only if the Effective Time shall              occur, (a) this Rights Agreement shall be terminated and be without further force              or effect, (b) none of the parties to this Rights Agreement will have any rights,              obligations or liabilities hereunder and (c) the holders of the Rights shall not be              entitled to any benefits, rights or other interests under this Rights Agreement,              including, without limitation, the right to purchase or otherwise acquire Preferred              Stock or any other securities of the Company or of any other Person; provided,              however, that notwithstanding the foregoing, Sections 16 and 18 hereof shall              survive the termination of this Rights Agreement.”         (e)   Section 22(a) of the Rights Agreement is hereby amended by adding the              following at the end thereof:                “The Company shall provide the Rights Agent with notice of the Effective              Time; provided, however, that failure to notify the Rights Agent of the Effective              Time shall not in any way have an effect on the time at which the Rights cease to              be exercisable.”         Section 2. Certification.  This Section 2 shall constitute a certificate from an  Authorized Officer of the Company for purposes of Section 24 of the Rights Agreement, and the  Company and the Authorized Officer signing this Amendment below, on behalf of the Company,  (i) hereby certify that this Amendment is in compliance with the terms of Section 24 of the  Rights Agreement and (ii) request and direct that the Rights Agent execute and deliver this  Amendment in accordance with Section 24.                                         3                                                                                 

 

      Section 3. Effective Date.  This Amendment is effective as of February 26, 2020.         Section 4. Full Force and Effect.  Except as expressly amended hereby, the Rights  Agreement shall continue in full force and effect unamended and in accordance with the  provisions thereof on the date hereof.         Section 5. Governing Law.  This Amendment shall be governed by and construed in  accordance with the laws of the State of Delaware applicable to contracts to be made and  performed entirely within such State.         Section 6. Severability.  If any term, provision, covenant or restriction of this  Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or  unenforceable, the remainder of the terms, provisions, covenants and restrictions of this  Amendment shall remain in full force and effect and shall in no way be affected, impaired or  invalidated.         Section 7. Counterparts.  This Amendment may be executed in any number of  counterparts, each of which shall be deemed an original, and all of which together shall  constitute one and the same instrument.                               [Signature Page Follows]                                          4                                                                                 

 

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly  executed under its corporate seal by its authorized officers.   Dated as of February 26, 2020                                       GAIN CAPITAL HOLDINGS, INC.                                       By:  /s/ Diego Rotsztain                                          Name:  Diego Rotsztain                                          Title:  EVP, General Counsel and                                                 Secretary                [Signature Page to Amendment No. 3 to Rights Agreement]                                                                           

 

                                                                           Countersigned:   BROADRIDGE CORPORATE  ISSUER SOLUTIONS, INC.  as Rights Agent    By:  /s/ John P. Dunn      Name:  John P. Dunn       Title:  Vice President                  [Signature Page to Amendment No. 3 to Rights Agreement]

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