Document:

exv10w1

 

AMENDMENT TO AMENDED AND RESTATED RIGHTS AGREEMENT

     This Amendment to Amended and Restated Rights Agreement dated as of April 27, 2006 (this
“Amendment”), between Liberty Property Trust, a Maryland real estate investment trust (the
“Company”), and Wells Fargo Bank, National Association, a national banking association (as
successor to EquiServe Trust Company, N.A.) (the “Rights Agent”).

WITNESSETH:

     WHEREAS, the Company and the Rights Agent constitute all of the parties to that certain
Amended and Restated Rights Agreement, dated as of September 14, 2004 (the “Rights
Agreement”), and desire to amend the Rights Agreement as set forth herein.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
herein contained, and intending to be legally bound hereby, and pursuant to the Rights Agreement
and in accordance with Section 26 thereof, the parties hereto do hereby agree as follows
(capitalized terms used but not defined herein have the meanings ascribed to such terms in the
Rights Agreement):

1. Amendment to the Rights Agreement. The Rights Agreement shall be amended and restated
in its entirety to read as follows:

Section 1(g) of the Rights Agreement is hereby replaced in its entirety by
the following sentence:

“Exempted Person” shall mean Cohen & Steers Capital Management, Inc. and
Cohen & Steers, Inc.; provided, however, that neither Cohen & Steers Capital
Management, Inc. nor Cohen & Steers, Inc. shall continue to be deemed to be
an Exempted Person, and each shall be deemed an Acquiring Person if Cohen &
Steers Capital Management, Inc. and Cohen & Steers, Inc., together with all
Affiliates and Associates of Cohen & Steers Capital Management, Inc. and
Cohen & Steers, Inc., become the Beneficial Owner of, in the aggregate, more
than 14.9% of the then outstanding Common Shares. A purchaser, assignee or
transferee of the Common Shares from an Exempted Person shall not thereby
become an Exempted Person.

2. Miscellaneous.

     (a) The laws of the State of Delaware shall govern the validity, interpretation, construction,
performance, and enforcement of this Agreement, excluding the choice of laws provisions of the
State of Delaware.

     (b) Except as modified herein, all other terms and provisions of the Rights Agreement
(including the Exhibits thereto) are unchanged and remain in full force and effect.

 

 

     (c) This Amendment may be executed in counterparts, each of which shall be deemed an original,
but all of which taken together shall constitute one and the same instrument. This Amendment shall
become effective when each party to this Amendment shall have received a counterpart hereof signed
by the other party to this Amendment.

     (d) This Amendment shall be binding upon any permitted assignee, transferee, successor or
assign to any of the parties hereto.

     (e) 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, and the Rights Agreement,
shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

     (f) The officer of the Company executing this Amendment on behalf of the Company hereby
certifies on behalf of the company that this Amendment complies with Section 26 of the Rights
Agreement.

     (g) In all respects not inconsistent with the terms and provisions of this Amendment, the
Rights Agreement is hereby ratified, adopted, approved and confirmed. In executing and delivering
this Amendment, the Rights Agent shall be entitled to all the privileges and immunities afforded to
the Rights Agent under the terms and conditions of the Rights Agreement.

 

 

     IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their duly
authorized representatives as of the date first written above.

	 	 	 	 	 
	 	LIBERTY PROPERTY TRUST

 	 
	 	By:  	/s/ James J. Bowes
 	 
	 	 	Name:  	James J. Bowes 	 
	 	 	Title:  	Secretary and General Counsel 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Claudine Anderson
 	 
	 	 	Name:  	Claudine Anderson 	 
	 	 	Title:  	Asst Vice Presidentexv4w1

 

Exhibit 4.1

PENNSYLVANIA DEPARTMENT OF STATE

CORPORATION BUREAU

 

Statement with Respect to Shares

 Domestic Business Corporation

(15 Pa.C.S. § 1522)

	 	 	 	 	 	 	 
	Name
	Jeffrey A. Harenza
	 
	Address
	111 North Sixth Street       Box 679
	 
	City

	 	State
	 	Zip Code

	Reading

	 	PA
	 	19603
	 

	 	 	 	 
	 	Document will be returned to the name and address you enter to the left.

 Ü

Fee: $70

     In compliance with the requirements of 15 Pa.C.S. § 1522(b) (relating to statement with
respect to shares), the undersigned corporation, desiring to state the designation and voting
rights, preferences, limitations, and special rights, if any, of a class or series of its shares,
hereby states that:

1. The name of the corporation is:

Sovereign Bancorp, Inc.

 
 

	2.	 	Check and complete one of the following:

	 	 	 
	o
	 	The resolution amending the Articles under 15 Pa.C.S. § 1522(b)
(relating to divisions and determinations by the board), set forth in full, is
as follows:

 

 

	 	 	 
	þ
	 	The resolution amending the Articles under 15 Pa.C.S. § 1522(b) is
set forth in full in Exhibit A attached hereto and made a part hereof.

	3.	 	The aggregate number of shares of such class or series established and
designated by (a) such resolution, (b)
all prior statements, if any, filed under 15 Pa.C.S. § 1522 or corresponding
provisions of prior law with respect
thereto, and (c) any other provision of the Articles is 8,000 shares.

 

DSCB:15-1522-2

4. The resolution was adopted by the Board of Directors or an authorized
committee thereon on:

April 26, 2006

 

5. Check, and if appropriate complete, one of the following:

þ The resolution shall be effective upon the filing of this statement with respect
to shares in the Department of State.

	 	 	 	 	 	 	 
	o The resolution shall be effective on:

	 	 	 	at 	 	.
	 

	 	 
	 	 	 	 
	 

	 	Date
	 	 	Hour	 

	
	IN TESTIMONY WHEREOF, the undersigned
corporation has caused this statement to be
signed by a duly authorized officer thereof this
	 
	28th day of
April    , 2006.
	 
	Sovereign Bancorp, Inc.
	Name of Corporation
	 
	/s/ Thomas R. Brugger
	 
	Signature
	 
	Treasurer
	 
	Title

 

Exhibit A

April 26, 2006

SOVEREIGN BANCORP, INC.

PRICING COMMITTEE OF THE BOARD OF DIRECTORS

RESOLUTIONS RE: TERMS OF SERIES C PREFERRED STOCK

     RESOLVED, that the Pricing Committee of the Board of Directors of Sovereign Bancorp, Inc. (the
“Corporation”), pursuant to the authority granted to it under resolutions adopted by the Board of
Directors of the Corporation (the “Board”) on April 20, 2006, hereby fixes the designation and the
terms and conditions and relative rights, qualifications and restrictions of the Corporation’s
Series C Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per
share, as follows:

     Section 1. Designation. The designation of the series of preferred stock shall be
Series C Non-Cumulative Perpetual Preferred Stock (“Series C Preferred Stock”). Each share of
Series C Preferred Stock shall be identical in all respects to each other share of Series C
Preferred Stock. Series C Preferred Stock will rank equally with Parity Stock (as hereinafter
defined), if any, and will rank senior to Junior Stock (as hereinafter defined) with respect to the
payment of dividends and the distribution of assets in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Corporation.

     Section 2. Par Value; Number of Shares. Shares of the Series C Preferred Stock shall
have no par value. The number of authorized shares of Series C Preferred Stock shall be 8,000.
Such number may from time to time be increased (but not in excess of the total number of authorized
shares of preferred stock) or decreased (but not below the number of shares of Series C Preferred
Stock then outstanding) by further resolution duly adopted by the Board or any duly authorized
committee of the Board and by the filing of a Statement With Respect to Shares (or any successor
form or filing) with the Secretary of State of the Commonwealth of Pennsylvania pursuant to the
provisions of the Pennsylvania Business Corporation Law of 1988, as amended, stating that such
increase or reduction, as the case may be, has been so authorized. The Corporation shall have the
authority to issue fractional shares of Series C Preferred Stock.

     Section 3. Definitions. As used herein with respect to Series C Preferred Stock:

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday or Friday on which banking
institutions are not required or permitted by law, regulation or executive order to close in New
York, New York or Philadelphia, Pennsylvania.

     “Depositary Company” shall have the meaning set forth in Section 6(d) hereof.

     “Dividend Payment Date” shall have the meaning set forth in Section 4(a) hereof.

     “Dividend Period” shall have the meaning set forth in Section 4(a) hereof.

     “DTC” means The Depositary Trust Company, together with its successors and assigns.

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     “Junior Stock” means the Corporation’s common stock and any other class or series of stock of
the Corporation hereafter authorized over which Series C Preferred Stock has preference or priority
in the payment of dividends or in the distribution of assets on any liquidation, dissolution or
winding up of the Corporation.

     “Parity Stock” means any other class or series of stock of the Corporation that ranks equally
with the Series C Preferred Stock in the payment of dividends and in the distribution of assets on
any liquidation, dissolution or winding up of the Corporation.

     “Preferred Directors” shall have the meaning set forth in Section 7 hereof.

     “Series C Preferred Stock” shall have the meaning set forth in Section 1 hereof.

     Section 4. Dividends.

          (a) Rate. Holders of Series C Preferred Stock shall be entitled to receive, when, as and if
declared by the Board or any duly authorized committee of the Board, but only out of assets legally
available therefor, non-cumulative cash dividends on the liquidation preference of $25,000 per
share of Series C Preferred Stock, and no more, payable quarterly in arrears on each February 15,
May 15, August 15 and November 15, commencing on August 15, 2006; provided, however, if any such
day is not a Business Day, then payment of any dividend otherwise payable on that date will be made
on the next succeeding day that is a Business Day (without any interest or other payment in respect
of such delay) (each such day on which dividends are payable is referred to herein as a “Dividend
Payment Date”). A “Dividend Period” is the period from and including a Dividend Payment Date to
but excluding the next Dividend Payment Date, except that the initial Dividend Period will commence
on and include the original issue date of the Series C Preferred Stock. Dividends on each share of
Series C Preferred Stock will accrue, on a non-cumulative basis, on the liquidation preference of
$25,000 per share at an annual rate of 7.30%. Dividends, if declared by the Board or a duly
authorized committee of the Board, will be payable to holders of record of Series C Preferred Stock
as they appear on our books on the applicable record date, which shall be the first day of the
calendar month during which the dividend payment date falls, or such other record date fixed by the
Board or a duly authorized committee of the Board from time to time, which shall not be more than
60 nor less than 10 days prior to such dividend payment date . Dividends payable on the Series C
Preferred Stock will be computed on the basis of a 360-day year consisting of twelve 30-day months.

          (b) Non-Cumulative Dividends. Dividends on shares of Series C Preferred Stock shall be
non-cumulative. To the extent that any dividends on the shares of Series C Preferred Stock with
respect to any Dividend Period are not declared and paid, in full or otherwise, on or before such
Dividend Payment Date, then such unpaid dividends shall not cumulate and shall cease to accrue and
be payable, and the Corporation shall have no obligation to pay, and the holders of Series C
Preferred Stock shall have no right to receive, dividends accrued for such Dividend Period on or
after the Dividend Payment Date for such Dividend
Period or interest with respect to such dividends, whether or not dividends are declared for
any subsequent Dividend Period with respect to Series C Preferred Stock, Parity Stock, Junior Stock
or any other class or series of authorized capital stock of the Corporation.

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          (c) Priority of Dividends. So long as any share of Series C Preferred Stock remains
outstanding, (i) no dividend or other distribution shall be declared or paid or set aside for
payment and no distribution shall be declared or made or set aside for payment on any Junior Stock,
other than a dividend payable solely in Junior Stock, (ii) no shares of Junior Stock shall be
repurchased, redeemed or otherwise acquired for consideration by the Corporation, directly or
indirectly (other than as a result of a reclassification of Junior Stock for or into Junior Stock,
or the exchange or conversion of one share of Junior Stock for or into another share of Junior
Stock, or other than through the use of the proceeds of a substantially contemporaneous sale of
other shares of Junior Stock), nor shall any monies be paid to or made available for a sinking fund
for the redemption of any such securities by the Corporation and (iii) no shares of Parity Stock
shall be repurchased, redeemed or otherwise acquired for consideration by the Corporation otherwise
than pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series C Preferred
Stock and such Parity Stock except by conversion into or exchange for Junior Stock, during a
Dividend Period, unless, in each case, the full dividends for the then-current Dividend Period on
all outstanding shares of Series C Preferred Stock have been declared and paid or declared and a
sum sufficient for the payment thereof has been set aside. When dividends are not paid in full
upon the shares of Series C Preferred Stock and any Parity Stock, all dividends declared upon
shares of Series C Preferred Stock and any Parity Stock shall be declared on a proportional basis
so that the amount of dividends declared per share will bear to each other the same ratio that
accrued dividends for the then-current Dividend Period per share on Series C Preferred Stock, and
accrued dividends, including any accumulations on Parity Stock, bear to each other. No interest
will be payable in respect of any dividend payment on shares of Series C Preferred Stock that may
be in arrears. Subject to the foregoing, and not otherwise, such dividends (payable in cash, stock
or otherwise) as may be determined by the Board or any duly authorized committee of the Board may
be declared and paid on any Junior Stock from time to time out of any assets legally available
therefor, and the shares of Series C Preferred Stock shall not be entitled to participate in any
such dividend.

     Section 5. Liquidation Rights.

          (a) Liquidation. In the event of any voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation, holders of Series C Preferred Stock shall be
entitled, out of assets legally available therefor, before any distribution or payment out of the
assets of the Corporation may be made to or set aside for the holders of any Junior Stock and
subject to the rights of the holders of any class or series of securities ranking senior to Series
C Preferred Stock upon liquidation, and the rights of the Corporation’s depositors and other
creditors, to receive a liquidating distribution in the amount of the liquidation preference of
$25,000 per share, plus any authorized, declared and unpaid dividends, without accumulation of any
undeclared dividends, to the date of liquidation. The holders of Series C Preferred Stock shall
not be entitled to any further payments in the event of any such voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Corporation other than what is
expressly provided for in this Section 5.

          (b) Partial Payment. If the assets of the Corporation are not sufficient to pay in full the
liquidation preference plus any authorized, declared and unpaid dividends to all holders of Series
C Preferred Stock and all holders of any Parity Stock, the amounts paid to the holders of Series C
Preferred Stock and to the holders of all Parity Stock shall be pro rata in accordance

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with the
respective aggregate liquidation preferences plus any authorized, declared and unpaid dividends of
Series C Preferred Stock and all such Parity Stock.

          (c) Residual Distributions. If the liquidation preference plus any authorized, declared and
unpaid dividends has been paid in full to all holders of Series C Preferred Stock and all holders
of any Parity Stock, the holders of Junior Stock shall be entitled to receive all remaining assets
of the Corporation according to their respective rights and preferences.

          (d) Merger, Consolidation and Sale of Assets Not Liquidation. For purposes of this Section
5, the sale, lease, exchange or other transfer (for cash, shares of stock, securities or other
consideration) of all or substantially all of the property and assets of the Corporation shall not
be deemed a voluntary or involuntary dissolution, liquidation or winding up of the affairs of the
Corporation, nor shall the merger, consolidation or any other business combination transaction of
the Corporation into or with any other corporation or person or the merger, consolidation or any
other business combination transaction of any other corporation or person into or with the
Corporation, including a merger or consolidation in which holders of Series C Preferred Stock
receive cash, securities or other property for their shares, be deemed to be a voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the Corporation.

     Section 6. Redemption.

          (a) Optional Redemption. The Corporation, at the option of the Board or any duly authorized
committee of the Board, subject to the prior approval of the Office of Thrift Supervision (or any
successor bank regulatory agency having jurisdiction over the Corporation) if then required, may
redeem, in whole or in part, the shares of Series C Preferred Stock at the time outstanding, at any
time on or after May 15, 2011, upon notice given as provided in Section 6(b) below. The redemption
price for shares of Series C Preferred Stock shall be $25,000 per share plus dividends that have
been declared but not paid. The holders of Series C Preferred Stock shall not have the right to
require or cause the Corporation to repurchase or redeem the Series C Preferred Stock.

          (b) Notice of Redemption. Notice of every redemption of shares of Series C Preferred Stock
shall be mailed by first class mail, postage prepaid, addressed to the holders of record of such
shares to be redeemed at their respective last addresses appearing on the stock register of the
Corporation. Such mailing shall be at least 30 days and not more than 60 days before the date
fixed for redemption. Notwithstanding the foregoing, if the Series C Preferred Stock is held in
book-entry form through DTC, the Corporation may give such notice in any manner permitted by DTC.
Any notice mailed as provided in this Section 6(b) shall be conclusively presumed to have been duly
given, whether or not the holder receives such notice, but failure duly to give such notice by
mail, or any defect in such notice or in the mailing thereof, to any holder of shares of Series C
Preferred Stock designated for redemption shall not affect the validity of the proceedings for the
redemption of any other shares of Series C Preferred Stock. Each notice shall state (i) the
redemption date; (ii) the number of shares of Series C Preferred
Stock to be redeemed and, if fewer than all the shares held by such holder are to be redeemed,
the number of such shares to be redeemed by such holder; (iii) the redemption price; (iv) the place
or places where the certificates for such shares are to be surrendered for payment of the

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redemption price; and (v) that dividends on the shares to be redeemed will cease to accrue on the
redemption date.

          (c) Partial Redemption. In case of any redemption of only part of the shares of Series C
Preferred Stock at the time outstanding, the shares of Series C Preferred Stock to be redeemed
shall be selected either pro rata from the holders of record of Series C Preferred Stock in
proportion to the number of Series C Preferred Stock held by such holders or in such other manner
as the Board or any duly authorized committee of the Board may determine to be fair and equitable.
Subject to the provisions of this Section 6, the Board or any duly authorized committee of the
Board shall have full power and authority to prescribe the terms and conditions upon which shares
of Series C Preferred Stock shall be redeemed from time to time.

          (d) Effectiveness of Redemption. If notice of redemption has been duly given and if on or
before the redemption date specified in the notice all funds necessary for the redemption have been
set aside by the Corporation, separate and apart from its other assets, in trust for the pro rata
benefit of the holders of the shares called for redemption, so as to be and continue to be
available therefor, or deposited by the Corporation with a bank or trust company selected by the
Board or any duly authorized committee of the Board (the “Depositary Company”) in trust for the pro
rata benefit of the holders of the shares called for redemption, then, notwithstanding that any
certificate for any share so called for redemption has not been surrendered for cancellation, on
and after the redemption date all shares so called for redemption shall cease to be outstanding,
all dividends with respect to such shares shall cease to accrue after such redemption date, and all
rights with respect to such shares shall forthwith on such redemption date cease and terminate,
except only the right of the holders thereof to receive the amount payable on such redemption from
such bank or trust company at any time after the redemption date from the funds so deposited,
without interest. The Corporation shall be entitled to receive, from time to time, from the
Depositary Company any interest accrued on such funds, and the holders of any shares called for
redemption shall have no claim to any such interest. Any funds so deposited and unclaimed at the
end of three years from the redemption date shall, to the extent permitted by law, be released or
repaid to the Corporation, and in the event of such repayment to the Corporation, the holders of
record of the shares so called for redemption shall be deemed to be unsecured creditors of the
Corporation for an amount equivalent to the amount deposited as stated above for the redemption of
such shares and so repaid to the Corporation, but shall in no event be entitled to any interest.

          (e) Any redemption of the Series C Preferred Stock is subject to the prior approval of the
Office of Thrift Supervision (or any successor bank regulatory agency having jurisdiction over the
Corporation), if such approval is then required.

     Section 7. Voting Rights. The holders of Series C Preferred Stock will have no voting rights
and will not be entitled to elect any directors, except as expressly provided by law and except
that:

          (a) Supermajority Voting Rights – Senior Securities. Unless the vote or consent of the
holders of a greater number of shares shall then be required by law, the affirmative vote or
consent of the holders of at least two-thirds of all of the shares of (i) Series C Preferred Stock
and (ii) any other class or series of preferred stock that ranks on parity with the Series C

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Preferred Stock as to payment of dividends or distribution of assets upon liquidation, dissolution
or winding up of the Corporation, outstanding at the time, voting together as a single class, given
in person or by proxy, at any special or annual meeting called for the purpose, will be necessary
to permit, effect or validate the creation or issuance, or any increase in the authorized or issued
amount of any class or series of stock (including any class or series of preferred stock) ranking
senior to the Series C Preferred Stock as to payment of dividends or distribution of assets upon
liquidation, dissolution or winding up of the Corporation;

          (b) Supermajority Voting Rights – Securities Convertible into Senior Securities. At the
election of the Corporation, either (i) the creation or issuance of any obligation or security
convertible into, or evidencing the right to purchase, any class or series of stock (including any
class or series of preferred stock) ranking senior to the Series C Preferred Stock as to payment of
dividends or distribution of assets upon liquidation, dissolution or winding up of the Corporation
or (ii) the conversion of any convertible security into, or the exercise of any right to purchase,
any class or series of stock (including any class or series of preferred stock) ranking senior to
the Series C Preferred Stock as to payment of dividends or distribution of assets upon liquidation,
dissolution or winding up of the Corporation, shall require the affirmative vote or consent of the
holders of at least two-thirds of all of the shares, unless the vote or consent of the holders of a
greater number of shares shall then be required by law, of (x) Series C Preferred Stock and (y) any
other class or series of preferred stock that ranks on parity with the Series C Preferred Stock as
to payment of dividends or distribution of assets upon liquidation, dissolution or winding up of
the Corporation, outstanding at the time, voting together as a single class, given in person or by
proxy, at any special or annual meeting called for the purpose; and

          (c) Supermajority Voting Rights – Amendment. Unless the vote or consent of the holders of a
greater number of shares shall then be required by law, the affirmative vote or consent of the
holders of at least two-thirds of all of the shares of (i) Series C Preferred Stock and (ii) any
other class or series of preferred stock whose rights, preferences, privileges or voting powers
would be materially and adversely affected that ranks on parity with the Series C Preferred Stock
as to payment of dividends or distribution of assets upon liquidation, dissolution or winding up of
the Corporation, outstanding at the time, voting together as a single class, given in person or by
proxy, at any special or annual meeting called for the purpose, will be necessary to permit, effect
or validate the amendment, alteration or repeal of any of the provisions of the Corporation’s
Articles of Incorporation or the Statement With Respect to Shares filed with the Secretary of State
of the Commonwealth of Pennsylvania with respect to the Series C Preferred Stock or any other
series of preferred stock, if such amendment, alteration or repeal would materially and adversely
affect any right, preference, privilege or voting power of the Series C Preferred Stock or of the
holders thereof; provided, however, that (x) any increase in the amount of authorized preferred
stock, the Series C Preferred Stock, or any other capital stock of the Corporation, or the creation
and issuance of other series of preferred stock, including convertible preferred stock, or any
other capital stock of the Corporation, in each case ranking on a parity with or junior to the
Series C Preferred Stock with respect to the payment of dividends and the
distribution of assets upon liquidation, dissolution or winding up of the Corporation, shall
not be deemed to materially and adversely affect any right, preference, privilege or voting power
of the Series C Preferred Stock or the holders thereof and (y) in no event shall any merger,
consolidation or other similar transaction involving the Corporation, including any future
transaction contemplated by the Investment Agreement, dated as of October 24, 2005 and

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amended as
of November 22, 2005, between the Corporation and Banco Santander Central Hispano, S.A., require
the approval of the holders of the Series C Preferred Stock, except (1) to the extent any right,
preference, privilege or voting power of the Series C Preferred Stock is materially and adversely
changed as a result of such merger, consolidation or similar transaction, and (2) to the extent
required by law.

          (d) Special Voting Right.

               (i) Voting Right. If and whenever dividends on any shares of the Series C Preferred Stock or
any other class or series of preferred stock that ranks on parity with the Series C Preferred Stock
as to payment of dividends, and upon which similar voting rights have been conferred and are
exercisable, shall have not been declared and paid for an amount equal to six or more Dividend
Periods, whether or not for consecutive Dividend Periods (a “Nonpayment”), the Board will be
expanded by two members and the holders of the Series C Preferred Stock (together with holders of
any and all other classes of the Corporation’s authorized preferred stock having equivalent voting
rights, whether or not the holders of such preferred stock would be entitled to vote for the
election of directors if such default in dividends did not exist) will be entitled to vote together
as a single class (to the exclusion of the holders of common stock) for the election of two
directors of the Corporation to fill such vacancies (the “Preferred Directors”), provided that the
election of the Preferred Directors shall not cause the Corporation to violate the corporate
governance requirement of the New York Stock Exchange (or any other exchange on which the
Corporation’s securities may be listed) that listed companies must have a majority of independent
directors, and provided further that the Board shall at no time include more than two Preferred
Directors.

               (ii) Election. The election of the Preferred Directors will take place at any annual meeting
of shareholders or any special meeting of the holders of Series C Preferred Stock, and any other
class or series of the Corporation’s stock that ranks on parity with Series C Preferred Stock as to
payment of dividends and for which dividends have not been paid, called as provided herein. At any
time after the special voting power has vested pursuant to Section 7(d)(i) above, the Board, within
30 days after the receipt of written request of at least 20% of the aggregate liquidation
preference of the Series C Preferred Stock (and any other class or series of preferred stock that
ranks on parity with Series C Preferred Stock as to payment of dividends and for which dividends
have not been paid for six or more Dividend Periods) (“Meeting Request”) shall (unless such Meeting
Request is received less than 90 days before the date fixed for the next annual or special meeting
of shareholders, in which event such election shall be held at such next annual or special meeting
of shareholders), call a meeting of the holders of Series C Preferred Stock (and any other class or
series of preferred stock that ranks on parity with Series C Preferred Stock as to payment of
dividends and for which dividends have not been paid for six or more Dividend Periods) for the
election of the Preferred Directors to be elected by them as provided in Section 7(d)(iii) below.
The Preferred Directors shall each be entitled to one vote on any matter.

               (iii) Notice for Special Meeting. Notice for a special meeting of holders of the Series C
Preferred Stock (and any other class or series of preferred stock that ranks on parity with Series
C Preferred Stock as to payment of dividends and for which dividends have not been paid for six or
more Dividend Periods) shall be given in the manner provided in the

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Corporation’s bylaws for a
special meeting of the Corporation’s shareholders. The Preferred Directors elected at any special
or annual meeting will hold office until the next annual meeting of the Corporation’s shareholders,
unless the Preferred Directors have been previously terminated or removed pursuant to Section
7(d)(iv) below. So long as a Nonpayment continues, any vacancy in the office of a Preferred
Director (other than prior to the initial election of a Preferred Director) may be filled by the
vote of the holders of record of a majority of the outstanding shares of Series C Preferred Stock
(together with any and all other class or series of the Corporation’s authorized preferred stock
having equivalent voting rights, whether or not the holders of such preferred stock would be
entitled to vote for the election of directors if such default in dividends did not exist) to serve
until the next annual meeting of shareholders.

               (iv) Termination; Removal. If and when full dividends on the Series C Preferred Stock have
been regularly paid for at least four subsequent dividend periods, whether or not consecutive,
following a Nonpayment on the Series C Preferred Stock and any other class or series of preferred
stock that ranks on parity with the Series C Preferred Stock as to payment of dividends, the
holders of the Series C Preferred Stock shall be divested of the foregoing voting rights (subject
to revesting in the event of each subsequent Nonpayment), and the terms of office of the Preferred
Directors shall immediately terminate and the number of directors on the Board shall automatically
decrease by two. The Preferred Directors may be removed at any time without cause by the holders
of record of a majority of the outstanding shares of the Series C Preferred Stock (together with
holders of any and all other classes of the Corporation’s authorized preferred stock having
equivalent voting rights, whether or not the holders of such preferred stock would be entitled to
vote for the election of directors if such default in dividends did not exist) when they have the
voting rights described in this Section 7(d).

          (e) For purposes of this Section 7, each holder of Series C Preferred Stock and any other
class or series of preferred stock that ranks on parity with the Series C Preferred Stock as to
payment of dividends, which is entitled to vote on any matter, will be entitled to vote with
respect to such matter, together as a single class, pro rata in accordance with the respective
aggregate liquidation preference of all shares of Series C Preferred Stock and such other class or
series of preferred stock owned by each holder which is entitled to vote on such matter.

          (f) The foregoing voting provisions will not apply if, at or prior to the time when the act
with respect to which such vote would otherwise be required shall be effected, all outstanding
shares of Series C Preferred Stock shall have been redeemed or called for redemption upon proper
notice and sufficient funds shall have been set aside by the Corporation for the benefit of the
holders of the Series C Preferred Stock to effect such redemption, as provided in Section 6(d)
above.

     Section 8. Conversion. The holders of Series C Preferred Stock shall not have any rights to
convert such Series C Preferred Stock into shares of any other class of capital stock of the
Corporation.

     Section 9. Rank. Notwithstanding anything set forth in the Articles of Incorporation or
otherwise provided herein to the contrary, the Board or any authorized committee of the Board,
without the vote of the holders of the Series C Preferred Stock, may authorize and issue additional
shares of Junior Stock, Parity Stock or, subject to the voting rights granted in

8

 

Sections 7(a) and
7(b), any class of securities ranking senior to the Series C Preferred Stock as to dividends and
the distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding up
of the affairs of the Corporation.

     Section 10. Repurchase. Subject to the limitations imposed herein, the Corporation may
purchase and sell Series C Preferred Stock from time to time to such extent, in such manner, and
upon such terms as the Board or any duly authorized committee of the Board may determine; provided,
however, that the Corporation shall not use any of its funds for any such purchase when there are
reasonable grounds to believe that the Corporation is, or by such purchase would be, rendered
insolvent.

     Section 11. Unissued or Reacquired Shares. Shares of Series C Preferred Stock not issued or
which have been issued and redeemed or otherwise purchased or acquired by the Corporation shall be
restored to the status of authorized but unissued shares of preferred stock without designation as
to series.

     Section 12. No Sinking Fund. Shares of Series C Preferred Stock are not subject to the
operation of a sinking fund.

     RESOLVED FURTHER, that the proper officers of the Corporation are hereby authorized and
directed, for and on behalf of the Corporation, to take any and all actions, and execute any and
all documents, to effect the foregoing resolutions.

9

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