Document:

Exhibit
10.34

 

BIOSITE INCORPORATED

EXECUTIVE BONUS PLAN

 

Adopted Effective January 1, 2003

 

1.                                      PURPOSE
OF PLAN.

 

Biosite Incorporated (the “Company”) hereby establishes this Executive
Bonus Plan (the “Plan”)
to permit Participants in this Plan to earn incentive bonuses in reward for
superior performance in their positions with the Company and to align their
interests with those of the stockholders of the Company.  Capitalized terms not explicitly defined in
the text will have the meanings given them in Section 10 below.

 

2.                                      PARTICIPATION.

 

Only Executives of the
Company who are designated by the Board or the Compensation Committee to
participate in this Plan shall be Participants in this Plan.  Participation in the Plan shall be
determined on an annual basis by the Board or the Compensation Committee.

 

3.                                      BONUS
TERMS.

 

Each fiscal year of the
Company, the Board or the Compensation Committee shall designate which of the
Executives of the Company shall be Participants in this Plan and determine the
terms and conditions and the potential amounts of bonuses each of such
Executives shall be eligible to earn and receive under this Plan based on an
assessment by the Compensation Committee of the performance of such Executives
as provided herein.

 

(a)                                  Grant
of Bonus Rights.  The terms and
conditions of any Bonus Rights granted to a Participant under this Plan are set
forth herein and in any Bonus Rights Notice delivered to the Participant.  The terms and conditions of such Bonus
Rights shall be as set forth herein unless different provisions are expressly
provided in the Bonus Rights Notice delivered to the Participant.

 

(b)                                  Terms and Conditions of Bonus Rights.  Subject to the provisions of this Plan, the Board or the
Compensation Committee shall have the discretionary authority to establish the
terms and conditions for any Bonus Rights granted under this Plan.

 

(i)                                    Determination of Performance Goals.  The
Board or the Compensation Committee shall determine the performance goals on
which each Participant shall be evaluated for a fiscal year.  By example and not as a limitation, such
performance goals may include:

 

(A)                               Financial Goals.  Financial goals may include
targeted revenue, targeted net income, targeted operating income, revenue
growth, earnings growth, operating income growth, profitability, earnings per
share and earnings per share growth.

 

 

(B)                               Qualitative Goals.  Qualitative goals may include
achievements in areas such as product and technology leadership, growth in
market share, implementation of key business programs, customer satisfaction,
cash flow, and cost and expense management.

 

(C)                               Milestone Goals.  Milestone goals may include
the achievement of specific objectives for a particular Participant for the
fiscal year.

 

(ii)                                Measurement of Performance.  The Compensation Committee
shall have the authority and discretion to determine if the Participants, and
any of them, have achieved the pre-determined goals for such Participants and
to measure their performance for purposes of the Plan.

 

(iii)                            Additional
Terms of Bonus Rights. The provisions of individual Bonus Rights Notices
need not be identical, but each Bonus Rights Notice shall include (through
incorporation of provisions hereof by reference in the Bonus Rights Notice or
otherwise) the substance of each of the following provisions:

 

(A)                               Termination
of Employment.  Except as otherwise
provided below in this Section 3(b), no portion of a Bonus Right shall be paid
to a Participant who does not remain in Employment with the Company through the
payment date for the bonus under such Bonus Right.  Any portion of a Bonus Right so forfeited by the Participant who
has terminated his or her Employment shall not be reallocated to other
Participants in the Plan.

 

(B)                               Termination
for Cause, Death or Disability. 
Notwithstanding any provision herein to the contrary, in the event that
the Employment of a Participant is terminated:

 

(1)                                 for
Cause as determined in good faith by the Board, then such Participant shall not
be entitled to receive any bonuses under this Plan; and

 

(2)                                 
due to the death or Disability of the Participant, then the Participant or his
or her probate estate shall be entitled to any bonuses otherwise payable to the
Participant under this Plan.

 

Notwithstanding
any provision herein to the contrary, if the employment of a Participant is
terminated for reasons other than (i) Cause, (ii) death, or (iii) Disability,
the Participant will continue to have the right to retain a Bonus Right for any
bonuses payable in the current quarter of such termination.

 

(iii)                            Other
Terms.  The Board or the
Compensation Committee may establish additional terms of the Bonus Rights of a
Participant, including imposing vesting requirements, as the Board or the
Compensation Committee may determine in its sole discretion.

 

(c)                                  Amounts
and Types of Bonuses.  The Board or
the Compensation Committee may in its discretion establish the target bonus
amount and potential bonuses based on a formula or schedule or a fixed amount
for each Participant which formula or schedule or fixed amount

 

2

 

shall be set forth in the Bonus Rights Notice to the Participant.  As provided in a Bonus Rights Notice, a
Participant may be entitled to earn and receive one or more bonuses as
described below.

 

(i)                                    Formula
or Schedule.  Bonuses for
Participants under this Plan may be based on a predetermined formula or
schedule adopted by the Board or the Compensation Committee prior to (1) the
end of the fiscal quarter for which the bonuses shall be paid for bonuses based
on performance over the fiscal quarter and for which the bonus is payable, and
(2) the 90th day of the fiscal year for which the bonuses shall be
paid for bonuses based on performance over the fiscal year.

 

(ii)                                Fixed
Bonus Amount.   Bonuses for Participants
under this Plan may be set at fixed amounts as adopted by the Board or the
Compensation Committee prior to the end of the fiscal year for which the
bonuses shall be paid.

 

(iii)                            Discretionary
Bonus.  The Board or the
Compensation Committee shall have the discretion, but not the obligation, to
grant a discretionary bonus (in a fixed bonus amount or pursuant to a formula
or schedule) under the Plan for superior performance.

 

(d)                                  Form
of Bonus Payments.  Bonuses shall be
payable in cash unless another form of payment as determined by the Board or
the Compensation Committee is provided for in the Bonus Rights Notice.

 

(e)                                  Determination
of Amounts of and Entitlement to Bonuses Payable under this Plan.  The Compensation Committee shall
determine the entitlement of a Participant to a bonus under the Plan based on
an assessment of his or her performance for the fiscal year or other time
period specified in the Bonus Rights Notice. 
Such determination shall be made in good faith.

 

(f)                                    Accrual
and Time of Payment of Bonuses.  
Any bonuses payable under this Plan shall be paid to eligible
Participants by the Company within a reasonable period of time in which it can
practicably make such distributions, except as otherwise provided herein.

 

(g)                                 Consequences
of Restatement of Financial Reports. 
To the extent required by the provisions of the Sarbanes-Oxley Act of
2002, in the event that the Company is required to restate its financial
statements due to an error in such financial statements, then any bonuses payable
under this Plan to the Chief Executive Officer and Chief Financial Officer of
the Company shall be disgorged by such officers and returned to the Company.

 

(h)                                 Deferral
of Receipt of Bonuses.  The receipt
of bonuses payable under this Plan may be deferred by a Participant as
permitted under a nonqualified deferred compensation plan or the tax-qualified
401(k) plan of the Company as provided in such plans.

 

4.                                      ADMINISTRATION.

 

The Compensation Committee shall be responsible for
the administration of this Plan and may exercise such additional powers and
authorities as the Board may delegate to the Compensation Committee which are
not otherwise provided for herein.  The
Compensation

 

3

 

Committee shall have the power, subject to, and within the limitations
of, the express provisions of this Plan:

 

(a)                                  To
construe and interpret this Plan and any Bonus Rights granted under it in the
Compensation Committee’s sole discretion, and to establish, amend and revoke rules
and regulations for its administration. The Compensation Committee, in the
exercise of this power, may correct any defect, omission or inconsistency in
this Plan or in any Bonus Rights, in a manner and to the extent it shall deem
necessary or expedient to make this Plan fully effective.

 

(b)                                 Generally,
to exercise such powers and to perform such acts as the Compensation Committee
deems necessary or expedient to promote the best interests of the Company which
are not in conflict with the provisions of this Plan.

 

(c)                                  Where
the Compensation Committee is granted authority under this Plan to take any
action described in this Plan, the Company Committee may exercise such
authority to take the action described in this Plan or make a recommendation to
the Board for the Board to consider in taking such action.

 

To the extent this Plan and the Bonus Rights granted
under this Plan are intended to qualify for the performance-based exemption
from the tax deduction limit of Section 162(m) of the Code, the Compensation
Committee (or a sub-committee of the Compensation Committee appointed by the
Board that satisfies the requirements for a compensation committee comprised of
outside directors within the meanings of such terms in Section 162(m) of the
Code and the income tax regulations promulgated thereunder including but not
limited to Treasury Regulation section 1.162-27(e)) shall have the authority
and responsibility of the Compensation Committee under this Plan after such
Plan has satisfied such other conditions for such exemption as required by
Section 162(m) of the Code and the income tax regulations promulgated
thereunder.

 

5.                                      MISCELLANEOUS.

 

(a)                                  Nonexclusivity.
Nothing herein shall prevent, limit or affect any Participant’s continuing or
future participation in any benefit, bonus, incentive or other plans, programs,
policies or practices provided by the Company and for which the Participant may
otherwise qualify. Except as otherwise expressly provided herein, amounts which
are vested benefits or payments or which a Participant is otherwise entitled to
receive under any other plan, policy, practice or program, or as a stockholder
of the Company shall be payable in accordance with such plan, policy, practice
or program.

 

(b)                                  Acceleration
of Payment and Vesting of Bonus.

 

(i)                                    In
General.  The Board and the
Compensation Committee shall have the power to accelerate the time at which a
Bonus Right may be paid or the time during which a Bonus Right or any part
thereof will vest in accordance with this Plan, or the provisions in the Bonus
Right stating the time during which a bonus will be paid or vest.

 

4

 

(ii)                                Corporate
Transactions.  Except and to the
extent as waived or consented to by Participants, the Company will not, through
any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities, Change of Control or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good
faith assist in the carrying out of all the provisions of this Plan and in the
taking of all such action as may be necessary or appropriate in order to
protect the rights of the Participants to receive Bonus Rights without
impairment.

 

In the event of a
Change of Control, then any surviving corporation or acquiring corporation
shall assume the Company’s obligation for any Bonus Rights outstanding under
the Plan. In the event any surviving corporation or acquiring corporation
refuses to assume the Company’s obligation for such Bonus Rights, then with
respect to the Bonus Rights held by a Participant whose Employment has not
terminated, the Bonus Rights shall be payable in full on or prior to such event.

 

(c)                                  No
Employment or Other Service Rights. Nothing in this Plan or any instrument
executed or Bonus Rights granted pursuant thereto shall confer upon any
Participant any right to continue to serve the Company or an Affiliate in the
capacity in effect at the time the Bonus Rights was granted or shall affect the
right of the Company to terminate the employment of an Executive with or
without notice and with or without Cause and any applicable provisions of the
corporate law of the state in which the Company is incorporated, as the case
may be.

 

(d)                                  Withholding
Obligations. All payments of Bonus Rights will be subject to withholding of
applicable income and employment taxes.

 

(e)                                  No
Transferable Rights. Except as provided in Section 6 or in the Participant’s
Bonus Rights Notice or otherwise consented to by the Company in writing, a
Participant in this Plan shall not have any rights or interests under this Plan
which may be transferred, assigned, pledged or hypothecated, and any attempts
to transfer, assign, pledge or hypothecate a right or interest in this Plan
without the consent of the Company shall be void and unenforceable and shall
cause the Bonus Rights of the Participant to be forfeited.

 

(f)                                    Non-ERISA
Plan. This Plan is a bonus plan and not an “employee benefit plan” within
the meaning of that term as defined in Section 3(3) of the federal Employee
Retirement Income Security Act of 1974, as amended.

 

6.                                      SUCCESSORS.

 

Any successor to the Company (whether direct or
indirect and whether by purchase, lease, merger, consolidation, liquidation or
otherwise) of all or substantially all of the Company’s business and/or assets
shall assume the obligations under this Plan and agree expressly to perform the
obligations under this Plan in the same manner and to the same extent as the
Company would be required to perform such obligations. The terms of this Plan
and all rights of a Participant hereunder shall inure to the benefit of, and be
enforceable by, the Participant’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

 

5

 

7.                                      AMENDMENT
OF THIS PLAN AND BONUS RIGHTS.

 

(a)                                  Amendment
of this Plan. The Board and the Compensation Committee at any time, and
from time to time, may amend this Plan; provided, however, that rights under
any Bonus Rights granted before an amendment of this Plan shall not be impaired
by such amendment of this Plan unless the Board or the Compensation Committee
requests the consent of the Participant and the Participant consents in
writing.

 

(b)                                  Amendment
of Bonus Rights. The Board and the Compensation Committee at any time, and
from time to time, may amend the terms of any one or more Bonus Rights;
provided, however, that the rights under any Bonus Rights shall not be impaired
by any such amendment unless the Board or the Compensation Committee requests
the consent of the Participant and the Participant consents in writing.

 

8.                                      TERMINATION
OR SUSPENSION OF THIS PLAN.

 

(a)                                  Plan
Term.  This Plan, as set forth
herein, shall become effective as of the Effective Date.  The Board may suspend or terminate the Plan
at any time.  No Bonus Rights may be
granted under this Plan while this Plan is suspended or after it is terminated.

 

(b)                                  No
Impairment of Rights. Except as otherwise provided for below, a suspension
or termination of this Plan shall not impair rights and obligations under any
Bonus Rights granted while this Plan is in effect except with the written
consent of the Participant. This Plan shall not terminate or expire with
respect to any Participant who becomes entitled to any Bonus Rights hereunder
until such Participant shall have received any bonus payment pursuant to such
Bonus Right in full in accordance with the terms of this Plan.

 

9.                                      CHOICE
OF LAW.

 

The laws of the State of California shall govern all
questions concerning the construction, validity and interpretation of this
Plan, without regard to such state’s conflict of laws rules.

 

10.                               DEFINITIONS.

 

(a)                                  “Board” means the Board
of Directors of the Company, provided that any Participant who is a member of
the Board shall not be permitted to take part in any action or determination by
the Board with respect to the Plan or any Bonus Rights awarded under the Plan.

 

(b)                                 “Bonus Right” means
the right to earn a bonus as provided for in Section 3 of this Plan which shall
be subject to the terms of this Plan and the terms and conditions of the Bonus
Rights Notice and such other agreements that the Board or the Compensation
Committee may reasonably require.

 

(c)                                  “Bonus Rights Notice”
means a written notice delivery by the Board or the Compensation Committee to a
Participant evidencing the terms and conditions of his or her

 

6

 

individual Bonus Right.  Each
Bonus Rights Notice shall be subject to the terms and conditions of this Plan
except as otherwise provided in this Plan.

 

(d)                                 “Cause” means that,
prior to termination of Employment, a Participant shall have committed, based
upon a reasonable determination by the Company: (i) an intentional act of
fraud, embezzlement or theft in connection with the Participant’s duties or in
the course of the Participant’s Employment, (ii) conduct demonstrating gross
unfitness to serve or job abandonment, (iii) intentional wrongful disclosure of
secret processes or confidential information of the Company, or (iv)
intentional, material violation of any employee policy of the Company or
contract between the Company and the Participant or any statutory duty of the
Participant to the Company in which such violation shall have been harmful to
the Company or an Affiliate.

 

(e)                                  “Change of Control”
means any one of the following transactions:

 

(i)                                     a
sale, lease or other disposition of all or substantially all of the assets of
the Company,

 

(ii)                                  a
consolidation or merger of the Company with or into any other corporation or
other entity or person, or any other corporate reorganization, in which the
stockholders of the Company immediately prior to such consolidation, merger or
reorganization, own less than 50% of the Company’s outstanding voting power of
the surviving entity (or its parent) following the consolidation, merger or
reorganization, or

 

(iii)                               any transaction (or
series of related transactions involving a person or entity, or a group of
affiliated persons or entities) in which in excess of fifty percent (50%) of
the Company’s outstanding voting power is transferred.

 

Notwithstanding the foregoing, the term shall not
include a reincorporation by the Company to change the state of its
incorporation.

 

(f)                                    “Code” means the
Internal Revenue Code of 1986, as amended.

 

(g)                                 “Compensation Committee”
means the Compensation Committee of the Board, provided that any Participant
who is a member of the Compensation Committee shall not be permitted to take
part in any action or determination by the Compensation Committee with respect
to the Plan or any Bonus Rights awarded under the Plan..

 

(h)                                 “Company” means
Biosite Incorporated, a Delaware corporation, and any successor or acquiring
entity as the result of an acquisition or asset sale of the Company.

 

(i)                                     “Disability” means the
permanent and total disability of a Participant within the meaning of the term
in Section 22(e)(3) of the Code as determined by the Board or the Compensation
Committee in good faith or as determined by a physician appointed by the Board
or the Compensation Committee licensed in the state in which the Participant
resides or works for the Company.

 

7

 

(j)                                     “Effective Date” means
the effective date of this Plan which shall be January 1, 2003.

 

(l)                                     “Employment” means
continuous employment as an employee on the payroll of the Company.

 

(m)                               “Executive” means a
person employed by the Company as an officer or other executive employee on or
after the Effective Date.

 

(n)                                 “Participant” means an
Executive designated to participate in the Plan as provided in Section 2 of
this Plan.

 

To record the adoption of this Plan by the Company,
the Board has caused the authorized member of the Board below to execute the
same as of the 1st day of April, 2003, to be effective as of January 1, 2003.

 

 

	
   

  	
  BIOSITE
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy J. Wollheger

  	
   

  
	
   

  	
  Name:

  	
  Timothy J. Wollheger

  	
   

  
	
   

  	
    Member of Board of Directors of Biosite Incorporated

  
					

 

8EXHIBIT 4.7

CENTERPOINT PROPERTIES TRUST

ARTICLES SUPPLEMENTARY

3,000,121 SHARES

SERIES C CUMULATIVE REDEEMABLE

PREFERRED SHARES

CenterPoint

Properties Trust, a Maryland real estate investment trust (the “Company”),

hereby certifies to the State Department of Assessments and Taxation of

Maryland that:

FIRST:  Under powers contained in Sections 2.3 and

2.4 of the Declaration of Trust of the Company (the “Declaration”), the

Board of Trustees of the Company (the “Board of Trustees”), by

resolutions duly adopted at a meeting duly called and held on March 20, 2003

and a duly authorized committee of the Board of Trustees, by resolutions duly

adopted by unanimous written consent dated March 31, 2003, classified and

designated 3,000,121 shares (the “Series C Preferred Shares”) of

Preferred Shares (as defined in the Declaration) as shares of Series C

Cumulative Redeemable Preferred Shares, par value $0.001 per share (the “Series

C Preferred Shares”), with the preferences, rights, voting powers,

restrictions, limitations as to dividends and other distributions,

qualifications and terms and conditions of redemption as set forth as follows.

SERIES C CUMULATIVE REDEEMABLE PREFERRED SHARES

Section

1.  Number of Shares and Designation.  3,000,121 Preferred Shares shall be designated

as Series C Cumulative Redeemable Preferred Shares (the “Series C Preferred

Shares”), subject, however, to increase or decrease upon further action of

the Board of Trustees in the future as permitted by the Declaration of Trust of

the Company (the “Declaration”) and applicable law.

Section

2.  Definitions.  For purposes of the Series C Preferred

Shares, the following terms shall have the meanings indicated:

“Affiliate”

of a person means a person that directly, or indirectly through one or more

intermediaries, controls or is controlled by, or is under common control with,

the person specified.

“Board

of Trustees” shall mean the Board of Trustees of the Company or any

committee authorized by such Board of Trustees to perform any of its

responsibilities with respect to the Series C Preferred Shares.

“Business

Day” shall mean any day (other than a Saturday, Sunday or legal holiday) on

which banking institutions in The City of New York are open for business and,

when used in the definition of Three-Month LIBOR, which is also a day on which

dealings in deposits in U.S. dollars are transacted in the London interbank

market.

“Common

Shares” shall mean the Common Shares, par value $0.001 per share, of the

Company.

“Declaration”

shall have the meaning set forth in Section 1 hereof.

“Dividend

Payment Date” shall have the meaning set forth in Section 3 hereof.

 

1

 

“Dividend

Period” shall mean the period commencing on the Issue Date through the

succeeding March 31, June 30, September 30 or December 31 (whichever is

sooner), each period thereafter of three calendar months ending on any March

31, June 30, September 30 or December 31, or the period from the January 1,

April 1, July 1 or October 1, as the case may be, preceding the Redemption Date

and ending on the Redemption Date.

“Dividend

Rate” shall mean a floating rate, expressed as a percentage of the

Liquidation Preference per annum, determined as follows:

(a)           from the Issue Date through and

including July 7, 2003, a rate equal to (x) Three-Month LIBOR for such period,

plus (y) the Initial Spread;

(b)           between July 8 and July 29, 2003, a

rate equal to (x) Three-Month LIBOR for such period, plus (y) the Initial

Spread plus (z) 50 basis points (0.50%); and

(c)           between July 30 and August 28, 2003,

a rate equal to (x) Three-Month LIBOR for such period, plus (y) the Initial

Spread plus (z) 100 basis points (1.00%); and

(d)           between August 29 and September 26,

2003, a rate equal to (x) three-Month LIBOR for such period, plus (y) the

Initial Spread plus (z) 150 basis points (1.50%); and

(e)           between September 27 and October 27,

2003, a rate equal to (x) Three-Month LIBOR for such period, plus (y) the

Initial Spread plus (z) 200 basis points (2.00%); and

(f)            after October 27, 2003, a fixed rate

equal to 8% plus (z) the product of (i) 50 basis points (0.50%) multiplied by

(ii) the number of whole calendar months elapsed after October 27, 2003; provided, however, in the event of a

Downgrade after October 27, 2003, the Dividend Rate shall be a fixed rate equal

to 10% plus (z) the product of (i) 50 basis points (0.50%) multiplied by (ii)

the number of whole calendar months elapsed after October 27, 2003.

provided, further, that the Dividend Rate

shall not exceed 20.0%

“Dividend

Rate Calculation Agent” shall mean such financial institution (and any

legal successor thereto) from time to time as shall be selected by the Company,

provided such selection is approved by the vote or written consent of the

holders of a majority of the outstanding shares of the Series C Preferred

Shares, and shall initially mean Wachovia Securities, Inc.

“Dividend

Record Date” shall have the meaning set forth in Section 3 hereof.

“Downgrade”

shall mean if, at any time, either (i) any two of Moody’s Investors Service,

Inc. (“Moody’s”), Standard & Poor’s Rating Service (“S&P”)

or Fitch Ratings Ltd. (“Fitch”) reduce the rating of the Series B

Preferred Shares from Baa3, BBB- and BBB-, respectively, or (ii) in the event

there are no Series B Preferred Shares outstanding at such time and any two of

Moody’s, S&P or Fitch reduce the rating of the Company’s senior unsecured

notes from Baa2, BBB or BBB, respectively.

“Excess

Shares” shall have the meaning set forth in Section 1.3 of Article I of the

Declaration.

“Initial

Spread” shall mean 150 basis points (1.50%) or, in the event of a

Downgrade, 200 basis points (2.0%) for such period as the Downgrade continues.

 

2

 

“Issue

Date” shall mean the first date on which any Series C Preferred Shares are

issued.

“Junior

Shares” shall have the meaning set forth in Section 7 hereof.

“Liquidation

Preference” shall have the meaning set forth in Section 4(a) hereof.

“Maryland

REIT Law” shall mean the Maryland REIT Law, as amended from time to time.

“Parity

Shares” shall have the meaning set forth in Section 7 hereof.

“Person”

shall mean any individual, firm, partnership, corporation or other entity and

shall include any successor (by merger or otherwise) of such entity.

“Redemption

Date” shall have the meaning set forth in paragraph (b) of Section 5

hereof.

“REIT”

shall mean a real estate investment trust as that phrase is defined under

Section 856 of the Internal Revenue Code of 1986, as amended.

“Series

A Preferred Shares” shall mean the 8.48% Series A Cumulative Redeemable

Preferred Shares of Beneficial Interest, par value $0.001 per share, of the

Company.

“Series

B Preferred Shares” shall mean the 7.50% Series B Convertible Cumulative

Redeemable Preferred Shares of Beneficial Interest, par value $0.001 per share,

of the Company.

“Series

C Parity Preferred” shall have the meaning set forth in paragraph (b) of

Section 8 hereof.

“Series

C Preferred Dividend Default” shall have the meaning set forth in paragraph

(b) of Section 8 hereof.

“Series

C Preferred Shares” shall have the meaning set forth in Section 1 hereof.

“Series

C Preferred Shares Trustees” shall have the meaning set forth in paragraph

(b) of Section 8 hereof.

“Set

apart for payment” shall be deemed to include, without any action other

than the following, the recording by the Company in its accounting ledgers of

any accounting or bookkeeping entry which indicates, pursuant to an

authorization of dividends or other distribution by the Board of Trustees, the

allocation of funds to be so paid on any series or class of shares of

beneficial interest of the Company.

“Three-Month

LIBOR” means the rate (expressed as a percentage per annum) for deposits in

U.S. dollars having a term of three months, commencing on the first day of the

applicable period (a “Reset Date”), which appears on Page 3750 on

Moneyline Telerate Inc. or any successor page (the “Telerate LIBOR Page”)

at approximately 11:00 a.m., London time, on the day that is two Business Days

preceding such Reset Date.  If such rate

does not appear on the Telerate LIBOR Page, the rate for such Reset Date will

be determined by reference to the rates at which deposits in U.S. dollars are

offered by four major banks in the London interbank market (the “Reference

Banks”) at approximately 11:00 a.m., London time, on the day that is two

Business Days preceding such Reset Date to prime banks in the London interbank

market for a period of three months commencing from such Reset Date and in a 

 

3

 

representative amount.  The

Company shall cause its Dividend Rate Calculation Agent to request the

principal London office of each of the Reference Banks to provide a quotation

of such rate.  If at least two such

quotations are provided, the rate for such Reset Date will be the arithmetic

mean of the quotations.  If fewer than

two quotations are provided as requested, the rate for such Reset Date will be

the arithmetic mean of the rates quoted by three major banks in New York City,

selected by the Company’s Dividend Rate Calculation Agent, at approximately

11:00 a.m., New York City time, on such Reset Date for loans in U.S. dollars to

leading European banks for a period of three months commencing on such Reset

Date and in a representative amount. 

The Company shall promptly (or shall cause its Dividend Rate Calculation

Agent promptly to) notify any holder of the Series C Preferred Shares of the

Dividend Rate for any Dividend Period upon request.

Section

3.  Dividends.

(a)           Holders of the then outstanding

Series C Preferred Shares shall be entitled to receive, when, as and if

authorized by the Board of Trustees, out of assets legally available for that

purpose, cumulative preferential cash dividends.  Such dividends shall be cumulative from the Issue Date and shall

be payable quarterly in arrears on or before each September 30, December 31,

March 31 and June 30 of each year or, if such day is not a business day, on the

next succeeding business day (a “Dividend Payment Date”) to holders of record

on such date, not more than 30 nor less than ten days preceding such Dividend

Payment Date, fixed for such purpose by the Board of Trustees (a “Dividend

Record Date”).  Dividends payable on

each Dividend Payment Date shall be equal to the sum of the daily amounts for

each day actually elapsed during a Dividend Period, which daily amounts shall

be computed by dividing (1) the product of (A) the Dividend Rate in effect for

each such day during such Dividend Period multiplied by (B) the Liquidation

Preference by (2) 360.  Such dividends

shall be cumulative from the Issue Date and shall accrue whether or not such

dividends shall be authorized, whether or not there shall be assets of the

Company legally available for the payment of such dividends, whether or not the

terms and provisions of any agreement of the Company, including any agreement

relating to its indebtedness, prohibits such authorization or payment or

provides that such authorization or payment would constitute a breach thereof

or a default thereunder, and whether or not such authorization or payment shall

be restricted or prohibited by law. 

Each such dividend shall be payable to the holders of record of the

Series C Preferred Shares, as they appear on the share records of the Company

at the close of business on the Dividend Record Date.  Accrued but unpaid dividends on the Series C Preferred Shares

shall accumulate as of the Dividend Payment Date on which they first become

payable.

(b)           Holders of Series C Preferred Shares

shall not be entitled to any dividends, whether payable in cash, property or

shares in excess of cumulative dividends, as herein provided, on the Series C

Preferred Shares.  Any dividend payment

made on the Series C Preferred Shares shall first be credited against the

earliest accrued but unpaid dividend due with respect to such shares.  The Company shall determine the dividend

payable on each Dividend Payment Date in accordance with these Articles

Supplementary, utilizing the Three-Month LIBOR rate supplied by the Dividend

Rate Calculation Agent (which the Dividend Rate Calculation Agent shall

determine in accordance with the definition of Three-Month LIBOR in these

Articles Supplementary).

(c)           Except as provided in Section 3(d)

below, no dividends shall be declared or paid or set apart for payment on any

Junior Shares or any Parity Shares (other than a dividend in Common Shares or

in any other class of Junior Shares) for any period unless full cumulative

dividends have been or contemporaneously are declared and paid or declared and

a sum sufficient for the payment thereof is set apart for such payment on the

Series C Preferred Shares for all past Dividend Periods and the then-current

Dividend Period.

 

4

 

(d)           When dividends are not paid in full

(or a sum sufficient for such full payment is not so set apart) upon the Series

C Preferred Shares and any Parity Shares, all dividends declared upon the

Series C Preferred Shares and any series of Parity Shares shall be declared pro

rata so that the amount of dividends declared per Series C Preferred Share and

Parity Share shall in all cases bear to each other the same ratio that accrued

dividends per Series C Preferred Share and Parity Share (which shall not

include any accrual in respect of unpaid dividends for prior dividend periods

if such Parity Shares does not have a cumulative dividend) bear to each

other.  No interest, or sum of money in

lieu of interest, shall be payable in respect of any dividend payment or

payments on the Series C Preferred Shares that may be in arrears.

(e)           Except as provided in the immediately

preceding paragraph, so long as any of the Series C Preferred Shares are

outstanding, no dividends (other than dividends or distributions paid in shares

of, or options, warrants or rights to subscribe for or purchase Junior Shares)

shall be authorized or paid or set apart for payment by the Company or other

distribution of cash or other property authorized or made directly or

indirectly by the Company with respect to any Junior Shares, nor shall any Junior

Shares be redeemed, purchased or otherwise acquired (other than a redemption,

purchase or other acquisition of Common Shares made in connection with an

employee incentive or benefit plan or award of the Company) for any

consideration (or any moneys be paid to or made available for a sinking fund

for the redemption of any shares of any such stock) directly or indirectly by

the Company (except by conversion into or exchange for Junior Shares), nor

shall any other cash or other property otherwise be paid or distributed to or

for the benefit of any holder of Junior Shares in respect thereof, directly or

indirectly, by the Company unless in each case full cumulative dividends have

been or contemporaneously are declared and paid or declared and a sum sufficient

for the payment thereof is set apart for such payment on the Series C Preferred

Shares and all Parity Shares for all past dividend periods and the then-current

dividend period.

Section

4.  Liquidation Preference.

(a)           In the event of any liquidation, dissolution

or winding up of the affairs of the Company, whether voluntary or involuntary,

before any assets of the Company shall be distributed, paid or set aside for

the holders of Junior Shares, the Company shall pay to the holders of Series C

Preferred Shares $25.00 per Series C Preferred Share (the “Liquidation

Preference”) plus an amount equal to all accrued and unpaid dividends (whether

or not earned or authorized and whether or not accumulated pursuant to the

final sentence of Section 3(a)) to the date of final distribution to such

holders; but such holders shall not be entitled to any further payment.  Until the holders of the Series C Preferred

Shares and holders of Parity Shares have been paid this liquidation preference

in full, no payment will be made to any holder of Junior Shares upon the

liquidation, dissolution or winding up of the Company.  If, upon any liquidation, dissolution or

winding up of the Company, the assets of the Company, or proceeds thereof, distributable

among the holders of Series C Preferred Shares shall be insufficient to pay in

full the preferential amount aforesaid and liquidating payments on any other

shares of any class or series of Parity Shares, then such assets, or the

proceeds thereof, shall be distributed among the holders of Series C Preferred

Shares and any such other Parity Shares ratably in the same proportion as the

respective amounts that would be payable on such Series C Preferred Shares and

any such other Parity Shares if all amounts payable thereon were paid in full.  For the purposes of this Section 4, (i) a

consolidation or merger of the Company with or into one or more corporations,

trusts or other entities, (ii) a sale or transfer of all or substantially all

of the Company’s assets, or (iii) a statutory share exchange shall not be

deemed to be a liquidation, dissolution or winding up, voluntary or

involuntary, of the Company.

(b)           Written notice of any such

liquidation, dissolution or winding up of the affairs of the Company, stating

the payment date or dates when, and the place or places where, the amounts

distributable in such circumstances shall be payable, shall be given by first

class mail, postage pre-paid, not less than 30 nor more than 60 days prior to

the payment date stated therein, to each record holder of 

 

5

 

the Series C Preferred Shares at the respective addresses of such

holders as the same shall appear on the share transfer records of the Company.

(c)           Subject to the rights of the holders

of any Parity Shares, upon any liquidation, dissolution or winding up of the

Company, after payment shall have been made in full to the holders of Series C

Preferred Shares and any Parity Shares, as provided in this Section 4, any

other series or class of Junior Shares shall, subject to the respective terms

thereof, be entitled to receive any and all assets remaining to be paid or

distributed, and the holders of the Series C Preferred Shares and any Parity

Shares shall not be entitled to share therein.

Section

5.  Redemption at the Option of the

Company.

(a)           The Company, at its option, after

July 3, 2003, may redeem all, but not less than all, Series C Preferred Shares

as set forth herein.  The Series C

Preferred Shares may be redeemed at the option of the Company at any time out

of assets legally available therefor at a redemption price payable in cash

equal to (x) $25.00 per share of Series C Preferred Shares multiplied by the

following amount: (i) if the Redemption Date is on or before July 7, 2003,

97.10%; (ii) if the Redemption Date is between July 8 and July 29, 2003,

97.60%; (iii) if the Redemption Date is between July 30 and August 28, 2003,

98.10%; (iv) if the Redemption Date is between August 29 and September 26,

2003, 98.60%; (v) if the Redemption Date is between September 27 and October

27, 2003, 99.10%; and if the Redemption Date is on or after October 27, 2003,

100%, plus (y) an amount equal to all accrued and unpaid dividends, if any, to

the Redemption Date (whether or not earned or authorized).

(b)           Series C Preferred Shares shall be

redeemed by the Company on the date specified in the notice to holders required

under paragraph (d) of this Section 5 (the “Redemption Date”).  The Redemption Date shall be selected by the

Company, shall be specified in the notice of redemption and shall be not less

than 15 days after the date notice of redemption is sent by the Company (which

notice may be sent at any time on or after June 20, 2003).  Upon any redemption of Series C Preferred

Shares pursuant to paragraph (a) of this Section 5, the Company shall pay in

cash to the holder of such shares an amount equal to all accrued and unpaid

dividends, if any, to the Redemption Date, whether or not earned or

authorized.  If the Redemption Date

falls after a Dividend Record Date and prior to the corresponding Dividend

Payment Date, then each holder of Series C Preferred Shares at the close of

business on such Dividend Record Date shall be entitled to the dividend payable

on such shares on the corresponding Dividend Payment Date notwithstanding the

redemption of such shares prior to such Dividend Payment Date.  Except as provided above, the Company shall

make no payment or allowance for accumulated or accrued dividends on Series C

Preferred Shares called for redemption.

(c)           If full cumulative dividends on all

outstanding Series C Preferred Shares have not been paid or authorized and set

apart for payment, no Series C Preferred Shares may be redeemed unless all

outstanding Series C Preferred Shares are simultaneously redeemed; provided, however, that the foregoing

shall not prevent the purchase by the Company of Excess Shares in order to

ensure that the Company remains qualified as a REIT for federal income tax

purposes or the purchase or acquisition of Series C Preferred Shares pursuant

to a purchase or exchange offer made on the same terms to holders of all

outstanding Series C Preferred Shares.

(d)           If the Company shall redeem Series C

Preferred Shares pursuant to paragraph (a) of this Section 5, notice of such

redemption shall be given to each holder of record of the shares to be

redeemed.  Such notice shall be provided

by first class mail, postage prepaid, at such holder’s address as the same

appears on the share records of the Company (except that if the sole record

holder of the Series C Preferred Shares is Wachovia Securities, Inc., such

notice may be given by telecopy to Wachovia Securities Debt Capital Markets at

704-383-9165 (to the attention of Teresa Hee) with a copy to Hunton 

 

6

 

& Williams at 804-788-8218 (to the attention of Randall S. Parks,

Esq.)).  If the Company elects to

provide such notice by telecopy, it shall also promptly mail notice of such

redemption to the holder of the Series C Preferred Shares to be redeemed.  Neither the failure to mail any notice

required by this paragraph (d), nor any defect therein or in the mailing

thereof, to any particular holder, shall affect the sufficiency of the notice

or the validity of the proceedings for redemption with respect to the other

holders.  Any notice which was mailed in

the manner herein provided shall be conclusively presumed to have been duly

given on the date mailed whether or not the holder receives the notice.  Any notice given by telecopy in the manner

herein provided shall be conclusively presumed to have been duly given when

receipt is confirmed by the telecopier. 

Each such mailed or telecopied notice shall state, as appropriate: (1)

the Redemption Date; (2) the number of Series C Preferred Shares to be

redeemed; and (3) that dividends on the Series C Preferred Shares to be

redeemed shall cease to accrue on such Redemption Date except as otherwise

provided herein.  Notice having been

published or mailed as aforesaid, from and after the Redemption Date (unless

the Company shall fail to issue and make available the amount of cash necessary

to effect such redemption, including all accrued and unpaid dividends to the

Redemption Date, whether or not earned, authorized or accumulated), (i) except

as otherwise provided herein, dividends on the Series C Preferred Shares so

called for redemption shall cease to accumulate or accrue on the Series C

Preferred Shares called for redemption (except that, in the case of a

Redemption Date after a Dividend Record Date and prior to the related Dividend

Payment Date, holders of Series C Preferred Shares on the Dividend Record Date

will be entitled on such Dividend Payment Date to receive the dividend payable

on such shares), (ii) said shares shall no longer be deemed to be outstanding, and

(iii) all rights of the holders thereof as holders of Series C Preferred Shares

of the Company shall cease (except the rights to receive the cash payable upon

such redemption, without interest thereon, upon surrender and endorsement of

their certificates if so required and to receive any dividends payable

thereon).

As

promptly as practicable after the surrender in accordance with said notice of

the certificates evidencing any such shares so redeemed (properly endorsed or

assigned for transfer, if the Company shall so require and if the notice shall

so state), such certificates shall be exchanged for cash (without interest

thereon) for which such shares have been redeemed in accordance with such

notice.

(e)           The Series C Preferred Shares are

subject to the provisions of Article IV of the Declaration relating to Excess

Shares.  Excess Shares issued upon

exchange of Series C Preferred Shares pursuant to such provisions may be

redeemed, in whole or in part, at any time when outstanding Series C Preferred

Shares are being redeemed, at a redemption price payable in cash equal to the

redemption price at the time for the Series C Preferred Shares (including any

accrued but unpaid dividends on the Series C Preferred Shares) which are

exchanged for such Excess Shares through the date of such exchange, without

interest.  If the Company elects to

redeem Excess Shares pursuant to the redemption right set forth in the

preceding sentence, such Excess Shares shall be redeemed in such proportion and

in accordance with such procedures as Series C Preferred Shares are being

redeemed.

Section

6.  Status of Shares.  All Series C Preferred Shares which shall

have been issued and redeemed or reacquired in any manner by the Company shall

be restored to the status of authorized but unissued Preferred Shares, without

designation as to series.

Section

7.  Ranking.  The Series C Preferred Shares shall, with

respect to dividend rights and rights upon liquidation, dissolution or winding

up of the Company, rank (a) senior to all classes or series of Common Shares

and all equity securities issued by the Company ranking junior to the Series C

Preferred Shares as to the payment of dividends or as to the distribution of

assets upon liquidation, dissolution or winding up of the Company (collectively,

“Junior Shares”); (b) on a parity with the Series A Preferred Shares,

Series B Preferred Shares and all other equity securities issued by the Company

ranking on a parity with the Series C Preferred Shares as to the payment of

dividends and as to distribution of assets upon liquidation, dissolution or

winding up of the Company, whether or not the 

 

7

 

dividend rates, dividend payment dates or redemption or liquidation

prices per share thereof be different from those of the Series C Preferred

Shares (collectively, “Parity Shares”); and (c) junior to all equity

securities issued by the Company, the terms of which specifically provide that

such equity securities rank senior to the Series C Preferred Shares as to the

payment of dividends or as to distribution of assets upon liquidation,

dissolution or winding up of the Company.

Section 8.  Voting Rights.

(a)           The holders of Series C Preferred

Shares shall not have any voting rights.

(b)           Whenever dividends on any shares of

Series C Preferred Shares shall be in arrears for six or more quarterly periods

(a “Series C Preferred Dividend Default”), the Board of Trustees shall

take such action as may be necessary to increase the number of Trustees of the

Company by two and the holders of such Series C Preferred Shares (voting

separately as a class with the holders of all other series of Parity Shares (“Series

C Parity Preferred”) upon which like voting rights have been conferred and

are exercisable) will be entitled to vote for the election of a total of two

trustees of the Company (the “Series C Preferred Share Trustees”) at a

special meeting called by the holders of record of at least 20% of the Series C

Preferred Shares or the holders of any other series of Series C Parity

Preferred so in arrears (unless such request is received less than 90 days

before the date fixed for the next annual or special meeting of shareholders)

or at the next annual meeting of shareholders, and at each subsequent annual

meeting until all dividends accumulated on such Series C Preferred Shares for

the past dividend periods and the dividend for the then-current dividend period

shall have been fully paid or declared and a sum sufficient for the payment

thereof set aside for payment.  If and

when all accumulated dividends and the dividend for the then-current dividend

period on the Series C Preferred Shares shall have been paid in full or set

aside for payment in full, the holders of Series C Preferred Shares shall be

divested of the voting rights set forth in this Section 8(b) (subject to

revesting in the event of each and every Series C Preferred Dividend Default)

and, if all accumulated dividends and the dividend for the then-current

dividend period have been paid in full or set aside for payment in full on all

other series of Series C Parity Preferred upon which like voting rights have

been conferred and are exercisable, the term of office of each Series C

Preferred Share Trustee so elected shall terminate and the Board of Trustees

shall take such action as may be necessary to reduce the number of Trustees by

two. Any Series C Preferred Shares Trustee may be removed at any time with or

without cause by the vote of, and shall not be removed otherwise than by the

vote of, the holders of record of a majority of the outstanding Series C

Preferred Shares when they have the voting rights set forth in this Section

8(b) (voting separately as a class with all other series of Series C Parity

Preferred upon which like voting rights have been conferred and are exercisable).

So long as a Series C Preferred Dividend Default shall continue, any vacancy in

the office of a Series C Preferred Share Trustee may be filled by written

consent of the Series C Preferred Share Trustee remaining in office, or if none

remains in office, by a vote of the holders of record of a majority of the

outstanding Series C Preferred Shares when they have the voting rights set

forth in Section 8(b) hereof (voting separately as a class with all other

series of Series C Parity Preferred upon which like voting rights have been

conferred and are exercisable). The Series C Preferred Share Trustees shall

each be entitled to one vote per trustee on any matter.

(c)           So long as any Series C Preferred

Shares remain outstanding, the Company shall not, without the affirmative vote

of the holders of at least two-thirds of the Series C Preferred Shares

outstanding at the time, given in person or by proxy, either in writing or at a

meeting (voting separately as a class), (i) authorize or create, or increase

the authorized or issued amount of, any class or series of shares of beneficial

interest of the Company ranking senior to the Series C Preferred Shares with

respect to payment of dividends or the distribution of assets upon liquidation,

dissolution or winding up or reclassify any authorized shares of beneficial

interest of the Company into any such shares, or create, authorize or issue any

obligation or security convertible into or evidencing the right to purchase any

such 

 

8

 

shares or (ii) amend, alter or repeal the provisions of the

Declaration, whether by merger, consolidation or otherwise, so as to materially

and adversely affect any right, preference, privilege or voting power of the

Series C Preferred Shares or the holders thereof; provided, however, that with respect to the occurrence of

any event set forth in clause (ii) of this Section 8(c) above, so long as the

Series C Preferred Shares remains outstanding with the terms thereof materially

unchanged or, if the Company is not the surviving entity in such transaction,

either is exchanged for a security of the surviving entity with terms that are

materially the same as the Series C Preferred Shares or is exchanged for cash

equal to the redemption price payable under Section 5 at the closing of such

exchange, the occurrence of any such event shall not be deemed to materially

and adversely affect such rights, preferences, privileges or voting powers of

the holders of the Series C Preferred Shares; and, provided, further, that any

increase in the amount of the authorized Preferred Shares or the creation or

issuance of any other series of Preferred Shares, or any increase in the amount

of authorized shares of such series, in each case ranking on a parity with or

junior to the Series C Preferred Shares with respect to payment of dividends or

the distribution of assets upon liquidation, dissolution or winding up, shall

not be deemed to materially and adversely affect such rights, preferences,

privileges or voting powers.

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 Series C Preferred Shares shall have been redeemed or

called for redemption upon proper notice and sufficient funds shall have been

deposited in trust to effect such redemption.

For

purposes of the foregoing provisions of this Section 8, each Series C Preferred

Share shall have one vote per share, except that when any other series of

preferred shares shall have the right to vote with the Series C Preferred

Shares as a single class on any matter, then the Series C Preferred Shares and

such other series shall have with respect to such matters one vote per $25 of

liquidation preference, and fractional votes shall be ignored.

(d)           Nothing contained in paragraph (c) of

this Section 8 shall require a vote of the holders of the Series C Preferred

Shares in connection with the redemption, purchase or other acquisition by the

Company of shares of the Company not in violation of the terms of the Series C

Preferred Shares.

Section

9.  Severability of Provisions.  If any preference, right, voting power,

restriction, limitation as to dividends or other distributions, qualification

or term or condition of redemption of the Series C Preferred Shares set forth

herein is invalid, unlawful or incapable of being enforced by reason of any

rule of law or public policy, all other preferences, rights, voting powers,

restrictions, limitations as to dividends or other distributions,

qualifications or terms or conditions of redemption of the Series C Preferred

Shares set forth herein which can be given effect without the invalid, unlawful

or unenforceable provision thereof shall, nevertheless, remain in full force

and effect, and no preferences, rights, voting powers, restrictions,

limitations as to dividends or other distributions, qualifications or terms or

conditions of redemption of the Series C Preferred Shares herein set forth

shall be deemed dependent upon any other provision thereof unless so expressed

therein.

SECOND:  The Series C Preferred Shares have been

classified and designated by the Board of Trustees under the authority

contained in the Declaration.

THIRD:  These Articles Supplementary have been

approved by the Board of Trustees in the manner and by the vote required by

law.

FOURTH:  The undersigned Executive Vice President of

the Company acknowledges these Articles Supplementary to be the corporate act

of the Company and, as to all matters or facts required to be verified under

oath, the undersigned Executive Vice President acknowledges that, to the 

 

9

 

best of his knowledge, information and belief, these matters and facts

are true in all material respects and that this statement is made under the

penalties for perjury.

[Signature

Page Follows]

 

 

10

 

IN WITNESS WHEREOF, the

Company has caused these Articles Supplementary to be executed under seal in

its name and on its behalf by its Executive Vice President and attested to by

its Assistant Secretary on this 31st day of March 2003.

 

 

	

  ATTEST:

  	

   

  	

  CENTERPOINT PROPERTIES

  TRUST

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  /s/ Rockford O. Kottka

  	

   

  	

  By:

  	

  /s/ Paul S. Fisher (SEAL)

  
	

  Rockford O. Kottka

  	

   

  	

   

  	

  Paul S. Fisher

  
	

  Assistant Secretary

  	

   

  	

   

  	

  Executive Vice President

  

 

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]