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DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
As of August 31, 2021, Commercial Metals Company (“CMC,” the “Company,” “we,” “us,” and “our”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): our common stock, $0.01 par value per share (the “Common Stock”).
Description of Capital Stock
The following summary of our capital stock does not purport to be complete and is subject to and qualified in its entirety by reference to our Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”), including the certificates of designations pursuant to which any outstanding series of preferred stock may be issued, our Fourth Amended and Restated Bylaws, or any supplement or amendment thereto (the “Bylaws”), and the General Corporation Law of the State of Delaware (“DGCL”). Copies of our Certificate of Incorporation and Bylaws have been filed with the Securities and Exchange Commission (the “SEC”) as Exhibits 3(i)(a)-(f) and 3(ii), respectively, to our Annual Report on Form 10-K.
Authorized Capital Stock
Under the Certificate of Incorporation, our authorized capital stock consists of:
•two hundred million (200,000,000) shares of Common Stock, par value $0.01 per share, and
•two million shares of preferred stock, par value $1.00 per share.
As of August 31, 2021, we had approximately 120,586,589 shares of Common Stock outstanding and no shares of preferred stock outstanding. As of August 31, 2021, we had reserved approximately 7,215,180 million additional shares of Common Stock for issuance under our various stock and compensation incentive plans.
Common Stock
Dividend Rights
Holders of Common Stock are entitled to receive dividends when, as and if declared by the Company’s board of directors (the “Board of Directors”), out of funds legally available for their payment (subject to the rights of holders of the preferred stock, if any). 
Voting Rights
Except as otherwise required by law, the Certificate of Incorporation or the Bylaws, each holder of Common Stock is entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders of the Company, including the election of directors. The holders of Common Stock do not have cumulative voting rights. 
Liquidation Rights
In the event of our voluntary or involuntary liquidation, dissolution or winding up, the holders of Common Stock will be entitled to share ratably in any of our assets available for distribution after the payment in full of all debts and distributions and after the holders of all series of outstanding preferred stock, if any, have received their liquidation preferences in full.
Miscellaneous
Holders of Common Stock have no sinking fund or redemption provisions, or conversion or preemptive rights. All outstanding shares of Common Stock are validly issued, fully paid and non-assessable. 
Exchange Listing
The Common Stock is listed on the New York Stock Exchange under the symbol “CMC.”
Transfer Agent

The transfer agent for our Common Stock is Broadridge Corporate Issuer Solutions, Inc.
Preferred Stock
The Company is authorized to issue preferred stock from time to time, in one or more series with such rights, preferences, privileges and restrictions, including dividend rights, voting rights, conversion rights, terms of redemption and liquidation preferences as may be fixed or designated by the Board of Directors without any further vote or action by the stockholders. Under certain circumstances, the issuance of preferred stock may discourage or make more difficult a merger, tender offer, other business combination or proxy contest, the assumption of control by a holder of a large block of the Company’s securities or the removal of incumbent management even if such event were favorable to the interests of stockholders. The Board of Directors, without stockholder approval, may issue Preferred Stock with voting and conversion rights and dividends and liquidation preferences which could adversely affect the holders of Common Stock. As of the date hereof, there are no shares of preferred stock outstanding.
Certain Provisions of the Certificate of Incorporation and Bylaws
The Certificate of Incorporation and Bylaws of the Company contain certain provisions that may delay, defer or prevent a change in control of the Company.
Classified Board; Vacancies and Removal of Directors
    Our Certificate of Incorporation and Bylaws classify the Board of Directors into three classes of directors as nearly equal in number as possible, each of which will serve for three years, with one class of directors being elected each year.
Our Certificate of Incorporation and Bylaws provide that directors may be removed only for cause (generally defined to include conviction of a felony, failure to attend 12 consecutive Board of Director meetings, or negligence or misconduct in the performance of the duties of a director) and only with the approval of the holders of at least a majority of the voting power of the then-outstanding shares of the Company’s capital stock entitled to vote generally in the election of directors (the “Voting Stock”). The number of directors shall be fixed and modified, but not reduced to less than three, from time to time by resolution of a majority of the authorized directors our Board of Directors. Any vacancy on the Board of Directors may be filled by the majority vote of the remaining directors then in office, though less than a quorum.
Stockholder Action by Written Consent
    Our Certificate of Incorporation and Bylaws provide that any action taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by written consent.
Special Meetings
Our Certificate of Incorporation and Bylaws provide that special meetings of our stockholders may be called only by the Board of Directors pursuant to a resolution adopted by a majority of the entire Board of Directors, by stockholders owning not less than a majority of the Voting Stock or by The Jacob Feldman and Sara B. Feldman Grantor Trust dated September 24, 1985 and the trustees of that trust as long as the Trust owns at least 10% of the Voting Stock.
Advance Notice Requirement
Our Bylaws set forth advance notice procedures with regard to stockholder nomination of persons for election to the Board of Directors or other business to be considered at an annual meeting of stockholders. These procedures provide that notice of such stockholder proposals must be timely given in writing to the secretary of the Company prior to the meeting at which the action is to be taken. Generally, to be timely, notice must be delivered to the secretary at the principal executive offices of the Company not less than 90 days nor more than 120 days prior to the anniversary date of the immediately preceding annual meeting of stockholders. The advance notice requirement does not give the Board of Directors any power to approve or disapprove stockholder director nominations or proposals but may have the effect of precluding the consideration of certain business at a meeting if the proper notice procedures are not followed. 
In addition, our Bylaws contain “proxy access” provisions, which permit a stockholder, or a group of up to 20 stockholders, that has continuously owned for no less than three years at least 3% of the Company’s outstanding shares of common stock, to nominate and include in the Company’s proxy materials up to the greater of two directors and 20% of the 

number of directors currently serving on the Company’s board, provided that the stockholder(s) and the nominee(s) satisfy the requirements specified in the Bylaws.
Business Combinations
    The Certificate of Incorporation also contains certain “fair price provisions” designed to provide safeguards for stockholders when an “interested stockholder” (defined as a stockholder owning 10% or more of the Voting Stock or its affiliate or associate) attempts to effect a “business combination” with the Company. The term “business combination” includes (i) any merger or consolidation of the Company involving the interested stockholder or an affiliate of the interested stockholder, (ii) certain dispositions of assets of the Company having an aggregate fair market value of $25 million or more to the interested stockholder or an affiliate of the interested stockholder, (iii) any issuance or transfer of securities of the Company to the interested stockholder having an aggregate fair market value of $25 million or more, (iv) the adoption of any plan of liquidation or dissolution of the Company by or on behalf of the interested stockholder or an affiliate of the interested stockholder and (v) any reclassification of securities or recapitalization of the Company or any merger or consolidation of the Company with any of its subsidiaries or any other transaction having the effect of increasing the proportionate share of ownership of the interested stockholder or an affiliate of the interested stockholder. In general, a business combination between the Company and the interested stockholder must be approved by the affirmative vote of 70% of the outstanding Voting Stock, excluding Voting Stock owned by such interested stockholder, unless the transaction is approved by a majority of the members of the Board of Directors continuing in office who are not affiliated with the interested stockholder and were directors before the interested stockholder became an interested stockholder, and certain minimum price and form of consideration requirements are satisfied. 
Limitation of Liability of Directors
The Certificate of Incorporation generally provides that, to the fullest extent permitted by the DGCL, no director shall be liable to the Company or its stockholders for monetary damages for breach of certain fiduciary duties as a director. Under the DGCL, a director’s liability may not be eliminated:
•for any breach(es) of the director’s duty of loyalty to us or to our stockholders;
•for acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law;
•for certain unlawful dividend payments or stock redemptions or repurchases; and
•for any transaction from which the director derives an improper personal benefit.
The effect of this provision is to restrict the rights of the Company and its stockholders to recover monetary damages against a director for breach of certain fiduciary duties as a director.
Supermajority Voting
The affirmative vote of the holders of 70% or more of the outstanding shares of Voting Stock is required to alter, amend, repeal or adopt any provision inconsistent with the provisions relating to the classified board, vacancy and removal of directors, right to call a special meeting and prohibition on stockholder consent, as well as certain other provisions of the Certificate of Incorporation and Bylaws.Document

INDEMNIFICATION AGREEMENT

THIS AGREEMENT (the “Agreement”) is made this ____ day of ___________, 2021 between Commercial Metals Company, a Delaware corporation (“the Company”), and the undersigned director or officer of the Company (“Indemnified Party”).

WITNESSETH:
 
WHEREAS, Indemnified Party is a director or officer of the Company and in such capacity is performing a valuable service for the Company; and

WHEREAS, the Company has purchased and presently maintains a policy or policies of Directors and Officers Liability Insurance (“D&O Insurance”) covering certain liabilities which may be incurred by its directors and officers in the performance of their services for the Company; and

WHEREAS, recent developments with respect to the terms, including, but not limited to, limits in coverage and availability of D&O Insurance and with respect to the application, amendment and enforcement of  statutory and bylaw indemnification provisions generally have raised questions concerning the adequacy and reliability of the protection afforded to directors thereby and have increased the difficulty of attracting and retaining qualified persons to serve as directors and officers of the Company; and

WHEREAS, the Board of Directors of the Company has determined that the difficulties relating to the attraction and retention of such persons is detrimental to the best interests of the Company's stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future; and

WHEREAS, the indemnification provisions in the Restated Certificate of Incorporation of the Company and Section 145 of the Delaware General Corporation Law specifically provide that they are not exclusive, and thereby contemplate that contracts may be entered into between the Company and its directors and officers with respect to indemnification of such persons; and

WHEREAS, in order to resolve the aforementioned issues and thereby induce Indemnified Party to continue to serve as a director or officer of the Company, the Company has determined and agreed to enter into this Agreement with Indemnified Party;

NOW, THEREFORE, in consideration of the above premises and of Indemnified Party’s continued service as a director or officer after the date hereof the parties hereto agree as follows:

1. Indemnification-General. The Company shall indemnify and advance Expenses (as hereinafter defined) to Indemnified Party to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as applicable law may thereafter from time to time permit. The rights of Indemnified Party provided under the preceding sentence shall include, but shall not be limited to, the rights set forth in the other Sections of this Agreement.

2. Proceedings Other Than Proceedings by or in the Right of the Company. Indemnified Party shall be entitled to the indemnification rights provided in this Section 2 if, by reason of his Corporate Status (as hereinafter defined), he is, or is threatened to be made, a party to any threatened, pending or completed Proceeding (as hereinafter defined), other than a Proceeding by or in the right of the Company.  Pursuant to this Section 2, Indemnified Party shall be indemnified against Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Company, and, with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was unlawful.

3. Proceedings by or in the Right of the Company. Indemnified Party shall be entitled to the indemnification rights provided in this Section 3, if, by reason of his Corporate Status, he is, or is threatened to be made, a party to any threatened, pending or completed Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnified Party shall be indemnified against Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding if he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Company. Notwithstanding the foregoing, no indemnification against such Expenses shall be made in 
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respect of any claim, issue or matter in such Proceeding as to which Indemnified Party shall have been adjudged to be liable to the Company if applicable law prohibits such indemnification; provided, however, that, if applicable law so permits, indemnification against Expenses shall nevertheless be made by the Company, despite such adjudication of liability, if and only to the extent that the Court of Chancery of the State of Delaware, or the court in which such Proceedings shall have been brought or is pending, shall determine.

4. Indemnification/or Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent that Indemnified Party is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnified Party is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnified Party against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successful resolved claim, issue or matter. For the purposes of this Section 4 and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

5. Contribution. In the event that the indemnity contained in Sections 2, 3 or 4 of this Agreement is unavailable or insufficient to hold Indemnified Party harmless in a Proceeding described therein, then in accordance with the provisions of Section 145(f) of the Delaware General Corporation Law, and separate from and in addition to the indemnity provided elsewhere herein, the Company shall contribute to Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by or on behalf of Indemnified Party in connection with such Proceeding or any claim, issue or matter therein, in such proportion as appropriately reflects the relative benefits received by, and fault of, the Company on the one hand and Indemnified Party on the other in the acts, transactions or matters to which the Proceeding relates and other equitable considerations.

6. Procedure for Determination of Entitlement to Indemnification.

(a)    To obtain indemnification under this Agreement, Indemnified Party shall submit to the Company a written request, including such documentation and information as is reasonably available to Indemnified Party and is reasonably necessary to determine whether and to what extent Indemnified Party is entitled to indemnification. The determination of Indemnified Party's entitlement to indemnification shall be made not later than 60 days after receipt by the Company of the written request for indemnification. The Secretary of the Company shall promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnified Party has requested indemnification.

(b)    Indemnified Party's entitlement to indemnification under any of Sections 2, 3, 4 and 5 of this Agreement shall be determined in the specific case: (i) by the Board of Directors by a majority vote of a quorum of the Board consisting of Disinterested Directors (as hereinafter defined); ( ii) by Independent Counsel (as hereinafter defined ), in a written opinion if a quorum of the Board of Directors consisting of Disinterested Directors is not obtainable or, even if obtainable, such quorum of Disinterested Directors so directs; or ( iii ) by the stockholders of the Company. If with regard to Section 5 of this Agreement, such a determination is not permitted by law or if a quorum of Disinterested Directors so directs, such determination shall be made by the Chancery Court of the State of Delaware or the court in which the Proceeding giving rise to the claim for indemnification is brought.

(c)    In the event that the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) of this Agreement, the Independent Counsel shall be selected as provided in this Section 6(c). The Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnified Party advising him of the identity of the Independent Counsel so selected. Indemnified Party may, within 7 days after receipt of such written notice of selection shall have been given, deliver to the Company a written objection to such selection. Such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 13 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. If such written objection is made, the Independent Counsel so selected shall be disqualified from acting as such. If, within 20 days after submission by Indemnified Party of a written request for indemnification pursuant to Section 6(a) of this Agreement, no Independent Counsel shall have been selected, or if selected shall have been objected to, in accordance with this Section 6(c), either the Company or Indemnified Party may petition the Court of Chancery of the State of Delaware for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person so appointed shall act as Independent Counsel under Section 6( b) of this Agreement, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 6(c), regardless of the manner in which such Independent Counsel was selected or appointed.

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7. Advancement of Expenses. The Company shall advance all reasonable Expenses incurred by or on behalf of Indemnified Party in connection with any Proceeding within twenty days after the receipt by the Company of a statement or statements from Indemnified Party requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Indemnified Party shall, and hereby undertakes to, repay any Expenses advanced if it shall ultimately be determined that Indemnified Party is not entitled to be indemnified against such Expenses.

8. Presumptions and Effect of Certain Proceedings. The termination of any Proceeding described in any of Sections 2, 3, or 4 of this Agreement, or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnified Party to indemnification or create a presumption that Indemnified Party did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnified Party had reasonable cause to believe that his conduct was unlawful.

9. Term of Agreement. All agreements and obligations of the Company contained herein shall commence as of the time the Indemnified Party commenced to serve as a director, officer, employee or agent of the Company (or commenced to serve at the request of the Company as a director, officer, employee or agent of the mother corporation, partnership, joint venture, trust or other enterprise) and shall continue for so long as Indemnified Party shall so serve or shall be, or could become, subject to any possible Proceeding in respect of which Indemnified Party is granted rights of indemnification or advancement of expenses hereunder.

10. Notification and Defense of Claim. Promptly after receipt by Indemnified Party of notice of the commencement of any Proceeding, Indemnified Party will, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof; but the omission to notify the Company will not relieve it from any liability which it may have to Indemnified Party otherwise than under this Agreement. With respect to any such Proceeding as to which Indemnified Party notifies the Company of the commencement thereof:

(a)The Company will be entitled to participate therein at its own expense.

(b)Except as otherwise provided below, to the extent that it may wish, the Company jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel satisfactory to Indemnified Party. After notice from the Company to Indemnified Party of its election so to assume the defense thereof, the Company will not be liable to Indemnified Party under this Agreement for any legal or other expenses subsequently incurred by Indemnified Party in connection with the defense thereof other than reasonable costs of investigation or as otherwise provided below. Indemnified Party shall have the right to employ counsel in such Proceeding but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnified Party unless (i) the employment of counsel by Indemnified Party has been authorized by the Company, (ii) Indemnified Party shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnified Party in the conduct of the defense of such Proceeding or (iii) the Company shall not in fact have employed counsel to assume the defense of such Proceeding, in each of which cases the fees and expenses of counsel shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company or as to which Indemnified Party shall have made the conclusion provided for in (ii) above.

(c)The Company shall not be liable to indemnify Indemnified Party under this Agreement for any amounts paid in settlement of any Proceeding or claim effected without its written consent. The Company shall not settle any Proceeding or claim in any manner which would impose any penalty or limitation on Indemnified Party without Indemnified Party's written consent. Neither the Company nor Indemnified Party will unreasonably withhold their consent to any proposed settlement.

11. Enforcement. 

(a)The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnified Party to continue as a director or officer of the Company, and acknowledges that Indemnified Party is relying upon this Agreement in continuing in such capacity.

(b)In the event Indemnified Party is required to bring any action to enforce rights or to collect moneys due under this Agreement and is successful in such action, the Company shall reimburse Indemnified Party for all of Indemnified Party's reasonable fees and expenses in bringing and pursuing such action.

12. Non-Exclusivity of Rights. The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnified Party may at any time be entitled under 
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applicable law, the Restated Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.

13. Definitions. For purposes of this Agreement. 

(a)“Corporate Status” described as the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company.

(b)“Disinterested Director” means a director of the Company who is not and was not at any time a party to the Proceeding in respect of which indemnification is sought by Indemnified Party.

(c)       “Expenses” shall include all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend or investigating a Proceeding.

(d)    “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnified Party in any matter material to either such party or (ii) any other party to the proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnified Party in an action to determine Indemnified Party's rights under this Agreement.

(e)    “Proceeding” includes any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other proceeding whether civil criminal administrative or investigative.

14. Separability.  Each of the provisions of this Agreement is a separate and distinct agreement and independent of the others, so that if any provision hereof shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of the other provisions hereof.

15. Governing Law; Binding Effect; Amendment and Termination.  

(a)    This Agreement shall be interpreted and enforced in accordance with the laws of the State of Delaware.

(b)    This Agreement shall be binding upon Indemnified Party and upon the Company, its successors and assigns, and shall inure to the benefit of Indemnified Party, his heirs, personal representatives and assigns and to the benefit of the Company, its successors and assigns.

(c)    No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by the parties.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

COMMERCIAL METALS COMPANY

By                          
                               

INDEMNIFIED PARTY

                        
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