EXHIBIT 3.1
RESTATED CERTIFICATE OF INCORPORATION
OF
ROPER INDUSTRIES, INC.
ADOPTED APRIL 1996
This Restated Certificate of Incorporation was duly adopted by unanimous
written consent of the Board of Directors of Roper Industries, Inc. in
accordance with the provisions of Section 245 of the General Corporation Law of
the State of Delaware. The Corporation was originally formed under the name
Dexter Holdings, Inc. pursuant to an original Certificate of Incorporation filed
with the Secretary of State of the State of Delaware on December 17, 1981. The
following Restated Certificate of Incorporation restates and integrates the
original Certificate of Incorporation and all amendments filed with the
Secretary of State of Delaware prior to April 11, 1996.
1. The name of the corporation is:
ROPER INDUSTRIES, INC.
2. The address of the corporation's registered office in the State of
Delaware is 1013 Centre Road in the City of Wilmington, County of New Castle,
and the name of the registered agent thereat is The Prentice-Hall Corporation
System, Inc.
3. The nature of the business of the corporation and the purposes to be
conducted or promoted by it are as follows:
(a) To design, manufacture, purchase, lease, distribute, install, repair,
service, sell, import, export and otherwise deal in or with any and all kinds of
positive displacement rotary and centrifugal pumps and industrial machinery, and
all related supplies, components, equipment and products;
(b) To acquire all or any part of the stock or other securities, goodwill,
rights, property or assets of any kind and to undertake or assume all or any
part of the obligations or liabilities of any corporation, association,
partnership, syndicate, entity, or person located in or
organized under the laws of any state, territory or possession of the United
States of America or any foreign country, and to pay for the same in cash,
stock, bonds, debentures, notes, or other securities, secured or unsecured, of
this or any other corporation or otherwise in any manner permitted by law, and
to conduct in any lawful manner all or any part of any business so acquired; and
(c) To engage in any lawful act or activity for which corporations may be
organized under the General Corporation Law of the State of Delaware.
In addition to the general powers conferred by the laws of the State of
Delaware and the purposes hereinbefore set forth, the corporation shall also
have the following powers:
(d) To issue any of the shares of its capital stock of any class or series
thereof now or hereafter authorized for such consideration as may be permitted
by law and upon such terms and conditions as the Board of Directors may deem
proper in its absolute discretion, and the stock so issued shall be fully paid
and not liable to any further call or payment thereof; in the absence of actual
fraud in the transaction, the judgment of the Board of Directors as to the value
of the property or other consideration received for the shares of capital stock
shall be conclusive; and
(e) To borrow money, make, issue and sell, pledge, or otherwise dispose of
checks, drafts, bills of exchange, documents of title, bonds, debentures, notes
and other evidence of indebtedness of all kinds, whether unsecured or secured by
-2-
mortgage, pledge or otherwise of any or all of the assets of the corporation,
and without limit as to amount; and generally to mortgage, pledge or sell any
stock or other securities or other property held by it, all on such terms and
conditions as the Board of Directors;
4. A. The total number of shares of stock which the corporation shall
have authority to issue is eighty-one million (81,000,000) shares, divided into
two (2) classes as follows:
(i) eighty million (80,000,000) shares, each to be of the par
value of one cent ($.01), and to be designated as Common Stock; and
(ii) one million (1,000,000) shares, each to be of the par value
of one cent ($.01), and to be designated as Preferred Stock.
B. (i) Each outstanding share of Common Stock shall entitle
the holder thereof to five (5) votes on each matter properly submitted to
the stockholders of the corporation for their vote, waiver, release or
other action; except that no holder of outstanding shares of Common Stock
shall be entitled to exercise more than one (1) vote on any such matter in
respect of any share of Common Stock with respect to which there has been
change in beneficial ownership during the four (4) years immediately
preceding the date on which a determination is made of the stockholders of
the corporation who are entitled to vote or to take any other action.
(ii) A change in beneficial ownership of an outstanding share of
Common Stock shall be deemed to have occurred whenever a change occurs in
any person or persons who, directly or indirectly, through any contract,
-3-
agreement, arrangement, understanding, relationship or otherwise has or
shares any of the following:
(a) voting power, which includes, without limitation, the
power to vote or to direct the voting power of such share of Common
Stock;
(b) investment power, which includes, without limitation,
the power to direct the sale or other disposition of such shares of
Common Stock;
(c) the right to receive or to retain the proceeds of any
sale or other disposition of such share of Common Stock; or
(d) the right to receive or to retain any distributions,
including, without limitation, cash dividends, in respect of such
share of Common Stock.
(iii) Without limiting the generality of the foregoing
section (ii) of this subparagraph B, the following events or
conditions shall be deemed to involve a change in beneficial ownership
of a share of Common Stock:
(a) in the absence of proof to the contrary provided in
accordance with the procedures set forth in section (v) of this
subparagraph B, a change in beneficial ownership shall be deemed to
have occurred (1) whenever an outstanding share of Common Stock is
transferred of record into the name of any other person and (2) upon
the issuance of shares in a public offering;
-4-
(b) in the case of an outstanding share of Common Stock held
of record in the name of a corporation, general partnership, limited
partnership, voting trustee, bank, trust company, broker, nominee or
clearing agency, if it has not been established pursuant to the
procedures set forth in section (v) of this subparagraph B that there
has been no change in the person or persons who or that direct the
exercise of the rights referred to in clauses (ii)(a) through (ii)(d),
inclusive, of this subparagraph B with respect to such outstanding
share of Common Stock during the period of four (4) years immediately
preceding the date on which a determination is made of the
stockholders of the corporation entitled to vote or to take any other
action (or since February 12, 1992 for any period ending on or before
February 12, 1992), then a change in beneficial ownership of such
share of Common Stock shall be deemed to have occurred during such
period;
(c) in the case of an outstanding share of Common Stock held
of record in the name of any person as a trustee, agent, guardian or
custodian under the Uniform Gifts to Minors Act as in effect in any
jurisdiction, a change in beneficial ownership shall be deemed to have
occurred whenever there is a change in the beneficiary of such trust,
the principal of such agent, the ward of such guardian, the minor for
whom such custodian is acting or in such trustee, agent, guardian or
custodian; or
-5-
(d) in the case of outstanding shares of Common Stock
beneficially owned by a person or group of persons who, after
acquiring, directly or indirectly, the beneficial ownership of five
percent (5%) of the outstanding shares of Common Stock, fails to
notify the corporation of such ownership within ten (10) days after
such acquisition, a change in beneficial ownership of such shares of
Common Stock shall be deemed to occur on each day while such failure
continues.
(iv) Notwithstanding any other provision in this subparagraph B
to the contrary, no change in beneficial ownership of an outstanding share
of Common Stock shall be deemed to have occurred solely as a result of:
(a) any event that occurred prior to February 12, 1992 or
pursuant to the terms of any contract (other than a contract for the
purchase and sale of shares of Common Stock contemplating prompt
settlement), including contracts providing for options, rights of
first refusal and similar arrangements, in existence on February 12,
1992 and to which any holder of shares of Common Stock is a party;
provided, however, that any exercise by an officer or employee of the
-------- -------
corporation or any subsidiary of the corporation of an option to
purchase Common Stock after February 12, 1992 shall, notwithstanding
the foregoing and clause (iv)(f) hereof, be deemed a change in
-6-
beneficial ownership irrespective of when that option was granted to
said officer or employee;
(b) any transfer of any interest in an outstanding share of
Common Stock pursuant to a bequest or inheritance, by operation of law
upon the death of any individual, or by any other transfer without
valuable consideration, including, without limitation, a gift that is
made in good faith and not for the purpose of circumventing the
provisions of this Article Fourth;
(c) any changes in the beneficiary of any trust, or any
distribution of an outstanding share of Common Stock from trust, by
reason of the birth, death, marriage or divorce of any natural person,
the adoption of any natural person prior to age eighteen (18) or the
passage of a given period of time or the attainment by any natural
person of a specific age, or the creation or termination of any
guardianship or custodial arrangement;
(d) any appointment of a successor trustee, agent, guardian
or custodian with respect to an outstanding share of Common Stock if
neither such successor has nor its predecessor had the power to vote
or to dispose of such share of Common Stock without further
instructions from others;
(e) any change in the person to whom dividends or other
distributions in respect of an outstanding share of Common Stock are
to be paid pursuant to the issuance or modification of a revocable
dividend payment order;
-7-
(f) any issuance of a share of Common Stock by the
corporation or any transfer by the corporation of a share of Common
Stock held in treasury other than in a public offering thereof, unless
otherwise determined by the Board of Directors at the time of
authorizing such issuance or transfer;
(g) any giving of a proxy in connection with a solicitation
of proxies subject to the provisions of Section 14 of the Securities
Exchange Act of 1934, as amended, and the rules and regulations
thereunder promulgated;
(h) any transfer, whether or not with consideration, among
individuals related or formerly related by blood, marriage or adoption
("relatives") or between a relative and any person controlled by one
or more relatives where the principal purpose for the transfer is to
further the estate tax planning objectives of the transferor or of
relatives of the transferor:
(i) any appointment of a successor trustee as a result of
the death of the predecessor trustee (which predecessor trustee shall
have been a natural person);
(j) any appointment of a successor trustee who or which was
specifically named in a trust instrument prior to February 12, 1992;
or
-8-
(k) any appointment of a successor trustee as a result of
the resignation, removal or failure to qualify of a predecessor
trustee or as a result of mandatory retirement pursuant to the express
terms of a trust instrument; provided, that less than fifty percent
--------
(50%) of the trustees administering any single trust will have changed
(including in such percentage the appointment of the successor
trustee) during the four (4) year period preceding the appointment of
such successor trustee.
(v) For purposes of this subparagraph B, all determinations
concerning changes in beneficial ownership, or the absence of any such
change, shall be made by the Board of Directors of the corporation or, at
any time when the corporation employs a transfer agent with respect to the
shares of Common Stock, at the corporation's request, by such transfer
agent on the corporation's behalf. Written procedures designed to
facilitate such determinations shall be established and may be amended,
from time to time, by the Board of Directors. Such procedures shall
provide, among other things, the manner of proof of facts that will be
accepted and the frequency with which such proof may be required to be
renewed. The corporation and any transfer agent shall be entitled to rely
on any and all information concerning beneficial ownership of the
outstanding shares of Common Stock coming to their attention from any
source and in any manner reasonably deemed by them to be reliable, but
neither the corporation nor any transfer agent shall be charged with any
other knowledge concerning the beneficial ownership of outstanding shares
of Common Stock.
-9-
(vi) In the event of any stock split or stock dividend with
respect to the outstanding shares of Common Stock, each share of Common
Stock acquired by reason of such split or dividend shall be deemed to have
been beneficially owned by the same person from the same date as that on
which beneficial ownership of the outstanding share or shares of Common
Stock, with respect to which such share of Common Stock was distributed,
was acquired.
(vii) Each outstanding share of Common Stock, whether at any
particular time the holder thereof is entitled to exercise five (5) votes
or one (1) vote, shall be identical to all other shares of Common Stock in
all respects, and together the outstanding shares of Common Stock shall
constitute a single class of shares of the corporation.
C. Authority is hereby granted to the Board of Directors of the
corporation to adopt, from time to time, a resolution or resolutions
providing for the issuance of shares of Preferred Stock in one or more
series; and the Board of Directors is hereby expressly granted and vested
with the authority to determine and to fix with respect to each series of
Preferred Stock any or all of the designations and the powers, preferences
and rights, and the qualifications, limitations or restrictions of such
Preferred Stock, including, but not limited to, the determination of the
following:
(i) the distinctive designation of such series of Preferred
Stock and the number of shares which shall constitute such series,
which number may be increased (except where otherwise provided by the
Board of Directors) or decreased (but not below the number of shares
thereof then outstanding) from time to time by the Board of Directors;
-10-
(ii) the rate of dividends, if any, payable on the shares of
such series of Preferred Stock, the conditions upon which and the
dates when such dividends shall be payable, whether such dividends
shall be cumulative (and, if so, from which date or dates), and
whether payable in preference to dividends payable on any other class
or classes of stock or on any other series of Preferred Stock;
(iii) whether or not the shares or such series of Preferred
Stock shall have voting powers, and, if voting powers are granted, the
extent of such voting powers;
(iv) whether or not the shares of such series of Preferred
Stock shall be redeemable and, if so, the terms and conditions of such
redemption, including, but not limited to, the date or dates upon or
after which they shall be redeemable and the amount per share payable
in case of redemption, which amount may vary under different
conditions and at different redemption dates;
(v) whether or not the shares of such series of Preferred
Stock shall be entitled to the benefit of a retirement fund or sinking
fund, and, if so, the terms and conditions of such fund;
(vi) whether or not the shares of such series of Preferred
Stock shall be convertible into or exchangeable for shares of any
other class or classes of stock of the corporation or of any other
series of Preferred Stock and, if made so convertible or exchangeable,
the time or times, the conversion price or prices, or the rate or
-11-
rates of exchange, and the adjustments thereof, it any, at which such
conversion or exchange may be made, and any other terms and conditions
of such conversion or exchange;
(vii) the rights of the holders of the shares of such
series of Preferred Stock upon the voluntary or involuntary
liquidation, dissolution or winding-up, or merger, consolidation or
distribution or sales of assets of the corporation;
(viii) the conditions and restrictions, if any, on the
payment of dividends or on the making of other distributions on, or
the purchase, redemption or other acquisition by the corporation of
the Roper Industries, Inc. Common Stock or of any other class of stock
or other series of Preferred Stock of the corporation ranking junior
to the shares of such series of Preferred Stock as to dividends or on
liquidation;
(ix) the conditions and restrictions, if any, on the
creation of indebtedness of the corporation or any subsidiary or on
the authorization or issue of any additional stock of the corporation
ranking on a parity with or prior to the shares of such series of
Preferred Stock as to dividends or on liquidation; and,
(x) any other preferences and relative, participating,
optional or other special rights, and qualifications, limitations or
restrictions thereof.
D. Subject to the foregoing, the authorized shares of stock of
any class of the corporation may be issued by the corporation from time to time
-12-
and for such consideration, not less than the par value thereof, and upon such
terms as may be fixed from time to time by the Board of Directors, and any and
all shares so issued, the full consideration for which shall have been paid or
delivered, shall be deemed fully-paid and non-assessable stock and shall not be
liable to any further call or assessment thereon.
E. The holders of stock, as such, of any class of the
corporation shall have no preemptive or preferential right to purchase or
subscribe for any part of the unissued capital stock of the corporation of any
class or for any new issue of stock of any class, whether now or hereafter
authorized or issued, or to purchase or subscribe for any bonds or other
obligations, whether or not convertible into stock of any class of the
corporation, now or hereafter authorized or issued other than such, if any, as
the Board of Directors of the corporation from time to time may fix pursuant to
the authority hereby conferred by the Certificate of Incorporation of the
corporation; and the Board of Directors may issue stock of the corporation, or
securities or obligations convertible into stock, without offering such issue of
stock or such securities or obligations, either in whole or in part, to the
stockholders of the corporation.
F. Subject to any limitations contained in the resolution or
resolutions providing for the issue of any series of Preferred Stock, the
holders of Common Stock shall be entitled to receive, when and as declared by
the Board of Directors out of the assets of the corporation which are by law
available therefor, dividends payable in cash, in property or in shares of
Common Stock. No dividends, other than dividends payable only in shares of
Common Stock of the corporation, shall be paid on Common Stock if cash dividends
in full to which all outstanding shares of Preferred Stock of all series shall
then be entitled for the then current dividend period and (where such dividends
are cumulative) for all past dividend periods shall not have been paid or
declared and set apart in full.
-13-
G. In the event of any voluntary or involuntary liquidation,
dissolution or winding-up of the corporation, the holders of Common Stock shall
be entitled, after payment or provision for payment of the debts and other
liabilities of the corporation and of the amounts to which the holders of the
Preferred Stock shall be entitled, to share ratably in the remaining net assets
of the corporation. Neither a consolidation nor a merger of the corporation
with or into any other corporation; nor a merger of any other corporation with
or into the corporation; nor a reorganization of the corporation; nor the
purchase or redemption of all or part of the outstanding shares of stock of any
class or classes of the corporation; nor the sale or transfer of the property
and business of the corporation as, or substantially as, an entity shall be
considered a liquidation, dissolution or winding-up of the corporation for
purposes of the preceding sentence.
Pursuant to the authority conferred upon the Board of Directors by this
Article 4, the Certificate of Designation, Preferences and Rights of Series A
Preferred Stock set forth as Exhibit A hereto was duly adopted by said Board of
Directors on January 8, 1996 and filed with the Secretary of State of the State
of Delaware on January 10, 1996.
5. The Board of Directors shall have the power (i) to make, alter or
amend the By-laws, subject only to such limitations, if any, as the By-laws of
the corporation may from time to time impose; (ii) from time to time to fix and
determine and to vary the amount to be reserved as working capital of the
corporation, and, before the payment of any dividends or making any distribution
or profits, to set aside out of the surplus or net profits of the corporation
such sum or sums as the Board may from time to time in its absolute discretion
think proper either as additional working capital or as a reserve fund to meet
contingencies, or for the repairing or maintaining of any property of the
corporation, or for such other corporate purposes as the Board of Directors
shall think conducive to the interests of the corporation, subject only to such
-14-
limitations, if any, as the By-laws of the corporation may from time to time
impose; (iii) from time to time, to the extent now or hereafter permitted by the
laws of Delaware, to sell, lease, exchange or otherwise dispose of any part of
the property and assets of the corporation which the Board of Directors deems it
expedient and for the best interests of the corporation to dispose of, or
disadvantageous to continue to own, without assent of the stockholders by vote
or otherwise; (iv) to issue or cause to be issued from time to time all or any
part of the authorized capital stock of the corporation on such terms and for
such consideration as the Board of Directors may determine in its discretion
without obtaining the approval of the holders of any of the then outstanding
capital stock; (v) pursuant to the affirmative vote of the holders of a majority
of the shares of stock issued and outstanding having voting power given at a
stockholders' meeting duly called for that purpose, to sell, lease, exchange, or
otherwise dispose of all or substantially all of the property and assets of the
corporation, including its goodwill and its corporate franchises, upon such
terms and conditions as the Board of Directors deems expedient and for the best
interest of the corporation; (vi) from time to time to authorize the corporation
to borrow money or to pledge the credit of the corporation by guaranty or
otherwise, and to issue, sell, pledge, or otherwise deliver or dispose of stock
of this or any other corporation, bonds, debentures, notes or other evidences of
indebtedness, whether unsecured or secured by mortgage, pledge or other lien of
any or all of the assets of the corporation, all on such terms and conditions as
the Board of Directors may determine or authorize in its discretion without
obtaining the approval of any of the holders of any of the then outstanding
capital stock of the corporation and; (vii) to exercise any and all other powers
conferred by law or by this certificate or which may be
conferred upon the Board of Directors by the corporation through appropriate By-
law provisions or otherwise.
6. The Board of Directors, by resolution or resolutions duly adopted
by it, may designate one or more committees, each committee to consist of one or
more directors of the corporation, which, to the extent provided in the
-15-
resolution or resolutions or in the By-laws of the corporation, but subject to
any limitations specifically imposed by the laws of Delaware, shall have and may
exercise all the powers and authority of the Board of Directors in the
management of the business and affairs of the corporation and may authorize the
seal of the corporation to be affixed to all papers which may require it.
7. No contract, act or transaction of the corporation with any
person, firm or corporation shall be affected or invalidated by reason of the
fact that any director or officer of the corporation is a party to or is
interested in such contract, act or transaction, or in any way connected with
such person, firm or corporation, provided that such interest or connection
shall have been disclosed or known to the corporation. Any director of the
corporation having any such interest or connection may, nevertheless, be counted
in determining the existence of a quorum at any meeting of the Board of
Directors or a committee which shall authorize any such contract, act or
transaction and may vote thereon with full force and effect. No such officer or
director nor any such person, firm or corporation in or with which such director
or officer is connected shall be liable to account to the corporation for any
profit realized from or through any such contract, act or transaction.
8. (i) Except as otherwise provided in this Certificate of
Incorporation or the General Corporation law of the State of Delaware, the
business and affairs of the corporation shall be managed by or under the
direction of a Board of Directors consisting of such number of members as may be
fixed, subject to the rights of the holders of any series of preferred stock
then outstanding, from time to time, by the affirmative vote of the majority of
the members of the Board of Directors of the corporation, but not less than the
minimum number authorized by the State of Delaware. The directors shall be
divided into three classes, as nearly equal in number as possible. The
directors serving at such time shall designate individual directors as the
initial members of such classes, with the term of office of the first class to
expire at the 1997 Annual Meeting of Stockholders, the term of office of the
second class to expire at the 1998 Annual Meeting of Stockholders and the
-16-
term of office of the third class to expire at the 1999 Annual Meeting of
Stockholders. At each Annual Meeting of Stockholders following the initial
classification and election, directors elected to succeed those directors whose
terms expire shall be elected for a term of office to expire at the third
succeeding Annual Meeting of Stockholders after their election.
(ii) Subject to the rights of the holders of any series of preferred
stock then outstanding, any director, or the entire Board of Directors, may be
removed from office at any time, but only for cause and only by the affirmative
vote of the holders of at least a majority of the voting power of all of the
shares of the corporation entitled to vote for the election of directors. For
purposes of this Article 8, cause for removal shall be construed to exist only
if the director whose removal is proposed has been convicted of a felony by a
court of competent jurisdiction or has been adjudged by a court of competent
jurisdiction to be liable for negligence or misconduct in the performance of his
duty to the corporation in a matter of substantial importance to the
corporation.
(iii) Subject to the rights of the holders of any series of preferred
stock then outstanding, newly created directorships resulting from any increase
in the authorized number of directors or any vacancies in the Board of Directors
resulting from death, resignation, retirement, disqualification, removal from
office or other cause shall be filled by a majority vote of the directors then
in office, and directors so chosen shall hold office for a term expiring at the
Annual Meeting of Stockholders at which the term of the class to which they have
been elected expires.
9. The corporation reserves the right to amend, alter, change or
repeal any provision contained in this Certificate of Incorporation or any
-17-
amendment thereto in the manner now or hereafter prescribed by the laws of the
State of Delaware, and all rights conferred on the stockholders hereunder are
granted subject to that reservation.
10. The duration of the corporation shall be perpetual.
11. A director of the corporation shall not be personally liable to
the corporation or its stockholders for monetary damages for breach of fiduciary
duty as a director, except for liability (i) for any breach of the director's
duty of loyalty to the corporation or its stockholders, (ii) for acts or
omissions not in good faith or which involve intentional misconduct or a knowing
violation of law, (iii) under Section 174 of the Delaware General Corporation
Law as the same exists or hereafter may be amended or (iv) for any transaction
from which the director derived an improper personal benefit. If the Delaware
General Corporation Law hereafter is amended to authorize the further
elimination or limitation of the liability of directors, then, in addition to
the limitation on personal liability provided herein, the liability of a
director of the corporation shall be limited to the fullest extent permitted by
the amended Delaware General Corporation Law. Any repeal or modification of this
paragraph by the stockholders of the corporation shall be prospective only, and
shall not adversely affect any limitation on the personal liability of a
director of the corporation existing at the time of such repeal or modification.
12. No action required to be taken or which may be taken at any
annual or special meeting of stockholders of the corporation may be taken
without a meeting, and the power of stockholders of the corporation to take any
such action by means of a consent or consents in writing, without a meeting, is
specifically denied.
-18-
IN WITNESS WHEREOF, Roper Industries, Inc. has caused this Restated
Certificate of Incorporation to be signed by Derrick N. Key, its President, and
Shanler D. Cronk, its Secretary, this 10th day of March 1997.
/s/ Derrick N. Key
-------------------------
Derrick N. Key,
President
/s/ Shanler D. Cronk
- -------------------------
Shanler D.Cronk, Secretary
-19-
EXHIBIT A
CERTIFICATE OF DESIGNATION, PREFERENCES AND RIGHTS
OF SERIES A PREFERRED STOCK
of
ROPER INDUSTRIES, INC.
Pursuant to Section 151 of the General Corporation Law
of the State of Delaware
We, Derrick N. Key, President, and John N. Marden, Secretary, of Roper
Industries, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware, in accordance with the provisions of
Section 103 thereof, DO HEREBY CERTIFY:
That pursuant to the authority conferred upon the Board of Directors
by the Certificate of Incorporation of the said Corporation, the said Board of
Directors on January 8, 1996, adopted the following resolution creating a series
of twenty five thousand (25,000) shares of Preferred Stock designated as Series
A Preferred Stock:
RESOLVED, that pursuant to the authority vested in the Board of
Directors of the Corporation by the Certificate of Incorporation, the
Board of Directors does hereby provide for the issue of a series of
Preferred Stock, $.01 par value, of the Corporation, to be designated
"Series A Preferred Stock" (hereinafter referred to as the "Series A
Preferred Stock"), and does hereby fix and herein state and express
the designations, powers, preferences and relative and other special
-20-
rights and the qualifications, limitations and restrictions thereof,
as follows:
Section 1. Designation and Amount. The shares of such series shall
----------------------
be designated as "Series A Preferred Stock" and the number of shares initially
constituting such series shall be twenty five thousand (25,000); provided,
however, that, if more than a total of twenty five thousand (25,000) shares of
Series A Preferred Stock shall be issuable upon the exercise of the Rights (the
"Rights") issued pursuant to the Rights Agreement dated as of January
8, 1996 between the Corporation and SunTrust Bank, Atlanta, as Rights Agent, the
Board of Directors of the Corporation, pursuant to Section 151(g) of the General
Corporation Law of the State of Delaware, shall direct by resolution or
resolutions that a certificate be properly executed, acknowledged, filed and
recorded, in accordance with the provisions of Section 103 thereof, providing
for the total number of shares of Series A Preferred Stock authorized to be
issued to be increased (to the extent the Certificate of Incorporation then
permits) to the largest number of whole shares (rounded up to the nearest whole
number) issuable upon exercise of the Rights.
Section 2. Dividends and Distributions.
---------------------------
(A) Subject to the prior and superior rights of the holders of any
shares of any series of Preferred Stock ranking prior and superior to the shares
of Series A Preferred Stock with respect to dividends, the holders of shares of
Series A Preferred Stock shall be entitled to receive, when, as and if declared
by the Board of Directors out of funds legally available for the purpose,
quarterly dividends payable in cash on the last day of each fiscal quarter in
each year or on such dates as the Board of Directors shall approve (each such
date being referred to herein as a "Quarterly Dividend Payment Date"),
commencing on the first Quarterly Dividend Payment Date after the first issuance
of a share or fraction of a share of Series A Preferred Stock, in an amount per
share of Series A Preferred Stock (rounded to the nearest cent) equal to the
-21-
greater of (i) $.01 or (ii) subject to the provision for adjustment hereinafter
set forth, one thousand (1,000) times the aggregate per share amount of all cash
dividends, and one thousand (1,000) times the aggregate per share amount
(payable in kind) of all non-cash dividends or other distributions other than a
dividend payable in shares of Common Stock or a subdivision of the outstanding
shares of Common Stock (by reclassification or otherwise), declared on the
Common Stock, par value $.01 per share, of the Corporation (the "Common Stock")
since the immediately preceding Quarterly Dividend Payment Date, or, with
respect to the first Quarterly Dividend Payment Date, since the first issuance
of any share or fraction of a share of Series A Preferred Stock. If the
Corporation shall at any time after January 8, 1996 (the "Rights Dividend
Declaration Date") (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock into a larger number
of shares, or (iii) combine the outstanding Common Stock into a smaller number
of shares, then in each such case the amount to which holders of shares of
Series A Preferred Stock were entitled immediately prior to such event under
clause (b) of the preceding sentence shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is
the number of shares of Common Stock that were outstanding immediately prior to
such event.
(B) The Corporation shall declare a dividend or distribution on the
Series A Preferred Stock as provided in paragraph (A) above immediately after it
declares a dividend or distribution on the Common Stock (other than a dividend
payable in shares of Common Stock); provided that, if no dividend or
distribution shall have been declared on the Common Stock during the period
between any Quarterly Dividend Payment Date and the next subsequent Quarterly
Dividend Payment Date, a dividend of $.01 per share on the Series A Preferred
Stock shall nevertheless be payable on such subsequent Quarterly Dividend
Payment Date.
-22-
(C) Dividends shall begin to accrue and be cumulative on outstanding
shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Series A Preferred Stock, unless
the date of issue of such shares is prior to the record date for the first
Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of
issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series A Preferred Stock entitled
to receive a quarterly dividend and before such Quarterly Dividend Payment Date,
in either of which events such dividends shall begin to accrue and be cumulative
from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall
not bear interest. Dividends paid on the shares of Series A Preferred Stock in
an amount less than the total amount of such dividends at the time accrued and
payable on such shares shall be allocated pro rata on a share-by-share basis
among all such shares at the time outstanding. The Board of Directors may fix a
record date for the determination of holders of shares of Series A Preferred
Stock entitled to receive payment of a dividend or distribution declared
thereon, which record date shall be no more than 30 days prior to the date fixed
for the payment thereof.
Section 3. Voting Rights. The holders of shares of Series A
-------------
Preferred Stock shall have the following voting rights:
(A) Subject to the provision for adjustment hereinafter set forth,
each share of Series A Preferred Stock shall entitle the holder thereof to one
thousand (1000) votes on all matters submitted to a vote of the shareholders of
the Corporation. If the Corporation shall at any time after the Rights Dividend
Declaration Date (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock into a larger number
of shares, or (iii) combine the outstanding Common Stock into a smaller number
of shares, then in each such case the number of votes per share to which holders
of shares of Series A Preferred Stock were entitled immediately prior to such
-23-
event shall be adjusted by multiplying such number by a fraction the numerator
of which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.
(B) Except as otherwise provided herein or by law, the holders of
shares of Series A Preferred Stock and the holders of shares of Common Stock
shall vote together as one class on all matters submitted to a vote of
shareholders of the Corporation.
(C) (i) If at any time dividends on any Series A Preferred
Stock shall be in arrears in an amount equal to six (6) quarterly dividends
thereon, the occurrence of such contingency shall mark the beginning of a period
(herein called a "default period") which shall extend until such time when all
accrued and unpaid dividends for all previous quarterly dividend periods and for
the current quarterly dividend period on all shares of Series A Preferred Stock
then outstanding shall have been declared and paid or set apart for payment.
During each default period, all holders of Preferred Stock (including holders of
the Series A Preferred Stock) with dividends in arrears in an amount equal to
six (6) quarterly dividends thereon, voting as a class, irrespective of series,
shall have the right to elect two (2) Directors.
(ii) During any default period, such voting right of the holders of
Series A Preferred Stock may be exercised initially at a special meeting called
pursuant to subparagraph (iii) of this Section 3(C) or at any annual meeting of
shareholders, and thereafter at annual meetings of shareholders, provided that
neither such voting right nor the right of the holders of any other series of
Preferred Stock, if any, to increase, in certain cases, the authorized number of
Directors shall be exercised unless the holders of ten percent (10%) in number
of shares of Preferred Stock
-24-
outstanding shall be present in person or by proxy. The absence of a quorum of
the holders of Common Stock shall not affect the exercise by the holders of
Preferred Stock of such voting right. At any meeting at which the holders of
Preferred Stock shall exercise such voting right initially during an existing
default period, they shall have the right, voting as a class, to elect Directors
to fill such vacancies, if any, in the Board of Directors as may then exist up
to two (2) Directors or, if such right is exercised at an annual meeting, to
elect two (2) Directors. If the number which may be so elected at any special
meeting does not amount to two (2) Directors, the holders of the Preferred Stock
shall have the right to make such increase in the number of Directors as shall
be necessary to permit the election by them of the two (2) Directors. After the
holders of the Preferred Stock shall have exercised their right to elect
Directors in any default period and during the continuance of such period, the
number of Directors shall not be increased or decreased except by vote of the
holders of Preferred Stock as herein provided or pursuant to the rights of any
equity securities ranking senior to or pari passu with the Series A Preferred
---- -----
Stock.
(iii) Unless the holders of Preferred Stock shall, during an existing
default period, have previously exercised their right to elect Directors, the
Board of Directors may order, or any shareholder or shareholders owning in the
aggregate not less than ten percent (10%) of the total number of shares of
Preferred Stock outstanding, irrespective of series, may request, the calling of
special meeting of the holders of Preferred Stock, which meeting shall thereupon
be called by the President, a Vice-President or the Secretary of the
Corporation. Notice of such meeting and of any annual meeting at which holders
of Preferred Stock are entitled to vote pursuant to this paragraph (C)(iii)
shall be given to each holder of record of Preferred Stock by mailing a copy of
such notice to him at his last address as the same appears on the books of the
Corporation. Such meeting shall be called for a time not earlier than twenty
(20) days and not later than sixty (60) days after such order or request or in
default of the calling of such meeting within sixty (60) days after such order
-25-
or request, such meeting may be called on similar notice by any shareholder or
shareholders owning in the aggregate not less than ten percent (10%) of the
total number of shares of Preferred Stock outstanding. Notwithstanding the
provisions of this paragraph (C)(iii), no such special meeting shall be called
during the period within sixty (60) days immediately preceding the date fixed
for the next annual meeting of the shareholders.
(iv) In any default period, the holders of Common Stock, and other
classes of stock of the Corporation if applicable, shall continue to be entitled
to elect the whole number of Directors until the holders of Preferred Stock
shall have exercised their right to elect two (2) Directors voting as a class,
after the exercise of which right (x) the Directors so elected by the holders of
Preferred Stock shall continue in office until their successors shall have been
elected by such holders or until the expiration of the default period, and (y)
any vacancy in the Board of Directors may (except as provided in paragraph
(C)(ii) of this Section 3) be filled by vote of a majority of the remaining
Directors theretofore elected by the holders of the class of stock which elected
the Director whose office shall have become vacant. References in this
paragraph (C) to Directors elected by the holders of a particular class of stock
shall include Directors elected by such Directors to fill vacancies as provided
in clause (y) of the foregoing sentence.
(v) Immediately upon the expiration of a default period, (x) the right
of the holders of Preferred Stock as a class to elect Directors shall cease, (y)
the term of any Directors elected by the holders of Preferred Stock as a class
shall terminate, and (z) the number of Directors shall be such number as may be
provided for in the Certificate of Incorporation or By-laws irrespective of any
increase made pursuant to the provisions of paragraph (C)(ii) of this Section 3
(such number being subject, however, to change thereafter in any manner provided
by law or in the Certificate of Incorporation or By-laws). Any vacancies in the
Board of Directors effected by the provisions of clauses (y) and (z) in the
-26-
preceding sentence may be filled by a majority of the remaining Directors, even
though less than a quorum.
(D) Except as set forth herein, holders of Series A Preferred Stock
shall have no special voting rights and their consent shall not be required
(except to the extent they are entitled to vote with holders of Common Stock as
set forth herein) for taking any corporate action.
Section 4. Certain Restrictions.
--------------------
(A) Whenever quarterly dividends or other dividends or distributions
payable on the Series A Preferred Stock as provided in Section 2 are in arrears,
thereafter and until all accrued and unpaid dividends and distributions, whether
or not declared, on shares of Series A Preferred Stock outstanding shall have
been paid in full, the Corporation shall not
(i) declare or pay dividends on, make any other
distributions on, or redeem or purchase or otherwise acquire for
consideration any shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the
Series A Preferred Stock;
(ii) declare or pay dividends on or make any other
distributions on any shares of stock ranking on a parity (either
as to dividends or upon liquidation, dissolution or winding up)
with the Series A Preferred Stock, except dividends paid ratably
on the Series A Preferred Stock and all such parity stock on
which dividends are payable or in arrears in proportion to the
total amounts to which the holders of all such shares are then
entitled;
-27-
(iii) redeem or purchase or otherwise acquire for
consideration shares of any stock ranking on a parity (either as
to dividends or upon liquidation, dissolution or winding up) with
the Series A Preferred Stock, provided that the corporation may
at any time redeem, purchase or otherwise acquire shares of any
such parity stock in exchange for shares of any stock of the
Corporation ranking junior (either as to dividends or upon
dissolution, liquidation or winding up) to the Series A Preferred
Stock; or
(iv) purchase or otherwise acquire for consideration any
shares of Series A Preferred Stock, or any shares of stock
ranking on a parity with the Series A Preferred Stock, except in
accordance with a purchase offer made in writing or by
publication (as determined by the Board of Directors) to all
holders of such shares upon such terms as the Board of Directors,
after consideration of the respective annual dividend rates and
other relative rights and preferences of the respective series
and classes, shall determine in good faith will result in fair
and equitable treatment among the respective series or classes.
-28-
(B) The Corporation shall not permit any subsidiary of the Corporation
to purchase or otherwise acquire for consideration any shares of stock of the
Corporation unless the Corporation could, under paragraph (A) of this Section 4,
purchase or otherwise acquire such shares at such time and in such manner.
Section 5. Reacquired Shares. Any shares of Series A Preferred Stock
-----------------
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and cancelled promptly after the acquisition thereof. All such
shares shall upon their cancellation become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject to
the conditions and restrictions on issuance set forth herein.
Section 6. Liquidation, Dissolution or Winding Up.
--------------------------------------
(A) Upon any liquidation (voluntary or otherwise), dissolution or
winding up of the Corporation, no distribution shall be made to the holders of
shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Preferred Stock unless, prior
thereto, the holders of shares of Series A Preferred Stock shall have received
$10 per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment (the
"Series A Liquidation Preference"). Following the payment of the full amount of
the Series A Liquidation Preference, no additional distributions shall be made
to the holders of shares of Series A Preferred Stock unless, prior thereto, the
holders of shares of Common Stock shall have received an amount per share (the
"Common Adjustment") equal to the quotient obtained by dividing (i) the Series A
Liquidation Preference by (ii) one thousand (1000) (as appropriately adjusted as
set forth in subparagraph C below to reflect such events as stock splits, stock
dividends and recapitalizations with respect to the
-29-
Common Stock) (such number in clause (ii), the "Adjustment Number"). Following
the payment of the full amount of the Series A Liquidation Preference and the
Common Adjustment in respect of all outstanding shares of Series A Preferred
Stock and Common Stock, respectively, holders of Series A Preferred Stock and
holders of shares of Common Stock shall receive their ratable and proportionate
share of the remaining assets to be distributed in the ratio of the Adjustment
Number to 1 with respect to such Preferred Stock and Common Stock, on a per
share basis, respectively.
(B) In the event, however, that there are not sufficient assets
available to permit payment in full of the Series A Liquidation Preference and
the liquidation preferences of all other series of preferred stock, if any,
which rank on a parity with the Series A Preferred Stock, then such remaining
assets shall be distributed ratably to the holders of such parity shares in
proportion to their respective liquidation preferences. In the event, however,
that there are not sufficient assets available to permit payment in full of the
Common Adjustment, then such remaining assets shall be distributed ratably to
the holders of Common Stock.
(C) If the Corporation shall at any time after the Rights Dividend
Declaration Date (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock into a larger number
of shares, or (iii) combine the outstanding Common Stock into a smaller number
of shares, then in each such case the Adjustment Number in effect immediately
prior to such event shall be adjusted by multiplying such Adjustment Number by a
fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.
Section 7. Consolidation, Merger, etc. If the Corporation shall
---------------------------
enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or
-30-
securities, cash and/or any other property, then in any such case the shares of
Series A Preferred Stock shall at the same time be similarly exchanged or
changed in an amount per share (subject to the provision for adjustment
hereinafter set forth) equal to one thousand (1000) times the aggregate amount
of stock, securities, cash and/or any other property (payable in kind), as the
case may be, into which or for which each share of Common Stock is changed or
exchanged. In the event the Corporation shall at any time
-31-
after the Rights Dividend Declaration Date (i) declare any dividend on Common
Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common
Stock into a larger number of shares, or (iii) combine the outstanding Common
Stock into a smaller number of shares, then in each such case the amount set
forth in the preceding sentence with respect to the exchange or change of shares
of Series A Preferred Stock shall be adjusted by multiplying such amount by a
fraction the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such
event.
Section 8. No Redemption. The shares of Series A Preferred Stock
-------------
shall not be redeemable.
Section 9. Ranking. The Series A Preferred Stock shall rank junior
-------
to all other series of the Corporation's Preferred Stock as to the payment of
dividends and the distribution of assets, unless the terms of any such series
shall provide otherwise.
Section 10. Amendment. The Certificate of Incorporation of the
---------
Corporation shall not be further amended in any manner which would materially
alter or change the powers, preferences or special rights of the Series A
Preferred Stock so as to affect them adversely without the affirmative vote of
the holders of a majority or more of the outstanding shares of Series A
Preferred Stock, voting separately as a class.
-32-
Section 11. Fractional Shares. Series A Preferred Stock may be
-----------------
issued in fractions of a share which shall entitle the holder, in proportion to
such holder's fractional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of
holders of Series A Preferred Stock.
IN WITNESS WHEREOF, we have executed and subscribed this Certificate
and do affirm the foregoing as true under the penalties of perjury as of the 8th
day of January.
/s/ Derrick N. Key
------------------------------
Derrick N. Key,
President
Attest:
/s/ John N. Marden
- -------------------------
John N. Marden, Secretary
-33-