EXHIBIT 4.3
FIRST AMENDMENT TO
WARRANT AND REGISTRATION RIGHTS AGREEMENT
This First Amendment, dated December 13, 2001 (the "First Amendment "),
---------------
amending that certain Warrant and Registration Rights Agreement dated as of May
15, 2001 by and among the Company and the Investors (the "Agreement"), is by and
---------
among the following parties:
A. with regards to the entire First Amendment, APW LTD., a Bermuda company
(the "Company");
-------
B. with regards to those sections of the First Amendment affecting the
First Tranche Warrant Certificates, the Holders of First Tranche Warrant
Certificates (as defined below) on the Company's records on the Second Effective
Date and listed on Schedule A hereto; and
C. with regards to those sections of this First Amendment affecting the
Second Tranche Warrant Certificates, the holders of Second Tranche Warrant
Certificates (as defined below) listed on Schedule B hereto who are being issued
Second Tranche Warrants in connection with the Credit Agreement.
NOW THEREFORE, in consideration of the foregoing and other consideration
the receipt of which is hereby acknowledged, the parties hereto agree as
follows:
1. Certain Definitions. Section 1 is hereby amended as follows:
-------------------
(a) The following new definitions are added to Section 1 of the Agreement
in appropriate alphabetic order:
(i) "Amendment Number One to First Tranche Warrant Certificate"
---------------------------------------------------------
shall mean the amendment to the First Tranche Warrant
Certificate evidenced by the amendment in form of Exhibit C
hereto.
(ii) "First Tranche Warrant" shall mean those Warrants issued for an
---------------------
initial aggregate of 1,771,348 Warrant Shares by the Company on
May 15, 2001, as amended by Amendment Number One to First
Tranche Warrant Certificate.
(iii) "First Tranche Warrant Certificate" shall mean the Warrant
---------------------------------
Certificate dated May 15, 2001 as amended by Amendment Number
One to First Tranche Warrant Certificate
(iv) "Second Effective Date" shall mean the date the Second Amendment
---------------------
to the Credit Agreement becomes effective.
(v) "Second Tranche Holder" shall mean the Holder of a Second
---------------------
Tranche Warrant Certificate.
(vi) "Second Tranche Warrant" shall mean those Warrants issued for an
----------------------
initial aggregate of 3,455,610 Warrant Shares by the Company on
the date hereof pursuant to the Second Tranche Warrant
Certificates.
(vii) "Second Tranche Warrant Certificate" shall mean the certificate
----------------------------------
evidencing the issuance of the Second Tranche Warrants in the
form of Exhibit D hereto.
(b) The following definitions shall be amended in their entirety to read
as follows:
(i) "Warrants" shall mean the aggregate of the First Tranche
--------
Warrants and, unless otherwise cancelled in accordance with
Section 10(b) of this Agreement, the Second Tranche Warrants.
(ii) "Warrant Certificates" shall mean the First Tranche Warrant
--------------------
Certificates and the Second Tranche Warrant Certificates.
(iii) "Warrant Shares" shall mean the aggregate of all Warrant Shares
--------------
as defined in the First Tranche Warrant Certificates and the
Second Tranche Warrant Certificates.
2. Issuance of Warrants. Section 2 of the Agreement is amended such that the
--------------------
current language shall become Section 2(a) and the following language shall
be added as Sections 2(b) and Section 2(c):
"(b) On the Second Effective Date, the Company and the Holders of the
First Tranche Warrant Certificates shall amend the First Tranche
Warrant Certificates by issuing and accepting the Amendment
Number One to the First Tranche Warrant Certificates.
"(c) On the Second Effective Date, in consideration for the Lenders
entering into the Second Amendment to the Credit Agreement, the
Company shall issue to each Lender a Second Tranche Warrant
Certificate representing Warrants to purchase the number of
Common Shares to which such Lender is entitled as set forth on
Exhibit D hereto (initially totaling 3,455,610 in the
aggregate)."
3. Representations, Warranties and Covenants of the Company. The Company
--------------------------------------------------------
hereby makes, as of the Second Effective Date, each of the representations,
warranties and covenants set forth in Section 3, except for the following
language found in Section 3(d)(i), which is hereby specifically amended as
of the Second Effective Date:
"As of the Second Effective Date, the authorized capital stock of the
Company consists solely of 250,000,000 Common Shares of which
(assuming no Lender or Designated Affiliate exercises any Warrant)
40,810,170 shares of Common Shares are issued and outstanding and
50,000,000 preferred shares, par value $0.01 per share, of which
1,000,000 have been designated as Series A Junior Participating
Preferred Stock, par value $0.01 per share, issuable in accordance
Company Rights Plan, of which no shares are issued and outstanding.
All of such outstanding capital stock is validly issued, fully paid
and nonassessable and has been issued in compliance with all
applicable laws. As of the Second Effective Date, there are options,
warrants and convertible securities exercisable or convertible into
7,026,282 Common Shares."
4. Compliance with Securities Laws; Legends. Section 4 is hereby amended as
----------------------------------------
follows.
2
(a) Section 4(d)(iii) is hereby amended by deleting the phrase "May 15,
2001" and replacing it with the phrase "the Original Issuance Date (as
defined in the applicable Warrant Certificate)".
(b) Section 4(d)(iv) is hereby amended in its entirety as follows:
"(iv) Except as provided in Sections 5(j) and 4(d)(ii), each
------------- --------
subsequently issued certificate for any Warrants or Warrant Shares
shall be imprinted with a legend substantially in the following form:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"). SUCH
--------------
SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED
OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER
THE SECURITIES ACT OR UNLESS AN EXEMPTION FROM
REGISTRATION IS AVAILABLE AND AN OPINION OF
COUNSEL WITH RESPECT TO SUCH EXEMPTION IS PROVIDED
TO THE EXTENT REQUIRED IN A CERTAIN WARRANT AND
REGISTRATION RIGHTS AGREEMENT DATED AS OF MAY 15,
2001, AS AMENDED, SUPPLEMENTED OR OTHERWISE
MODIFIED FROM TIME TO TIME, ENTERED INTO AMONG
THE COMPANY AND CERTAIN HOLDERS OF SECURITIES
OF THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO THE TERMS AND PROVISIONS OF A
CERTAIN WARRANT AND REGISTRATION RIGHTS AGREEMENT
DATED AS OF MAY 15, 2001, AS AMENDED, SUPPLEMENTED
OR OTHERWISE MODIFIED FROM TIME TO TIME, ENTERED
INTO AMONG THE COMPANY AND CERTAIN HOLDERS OF
SECURITIES OF THE COMPANY, A COPY OF WHICH IS ON
FILE AT THE COMPANY'S PRINCIPAL OFFICES. UPON
WRITTEN REQUEST TO THE COMPANY'S SECRETARY, A
COPY OF SUCH AGREEMENT WILL BE PROVIDED WITHOUT
CHARGE TO APPROPRIATELY INTERESTED PERSONS."
5. Warrant Reduction. Section 10 is hereby amended in its entirety to read as
-----------------
follows:
"(a) No Reduction in First Tranche. There shall be no reduction of the
-----------------------------
Warrant Shares issuable under the First Tranche Warrants.
(b) Second Tranche Full Warrant Reduction. All of Warrant Shares
-------------------------------------
issuable under the Second Tranche Warrants shall be cancelled if the
Administrative Agent under the Credit Agreement and the agent under
the UK Credit Facilities certify, by July 31, 2002, that (i) all
outstanding Loans (as defined in the Credit Agreement) have been
repaid in full in cash, by wire transfer or certified or cashier's
check, (ii) all Commitments (as defined in the Credit Agreement) have
3
been terminated under the Credit Agreement, (iii) all credit
extensions under the UK Credit Facilities have been paid in full (or,
in respect to contingent liabilities, fully collateralized in cash, by
wire transfer or certified or cashier's check) and (iv) all
commitments have been terminated under the UK Credit Facilities. Such
certification shall be filed with the Secretary of the Company by the
close of business Bermuda time on July 31, 2002, with copies sent to
all Second Tranche Holders as soon as practicable thereafter. Upon the
receipt of such certification by the Secretary of the Company, each
Second Tranche Warrant Certificate shall automatically be cancelled.
Upon notification to the Second Tranche Holders that a full repayment
has occurred and upon the filing of such certification, no further
action is required to effect the reduction.
(c) Second Tranche Partial Reduction. The number of Warrant Shares
--------------------------------
issuable under the Second Tranche Warrants shall be reduced by 49.5%
if the Administrative Agent under the Credit Agreement and the agent
under the UK Credit Facilities certify, by September 30, 2002, that
(i) all outstanding Loans (as defined in the Credit Agreement) have
been repaid in full in cash, by wire transfer or certified or
cashier's check, (ii) all Commitments (as defined in the Credit
Agreement) have been terminated under the Credit Agreement, (iii) all
credit extensions under the UK Credit Facilities have been paid in
full (or, in respect to contingent liabilities, fully collateralized
in cash, by wire transfer or certified or cashier's check) and (iv)
all commitments have been terminated under the UK Credit Facilities.
Such certification shall be filed with the Secretary of the Company by
the close of business Bermuda time on September 30, 2002, with copies
sent to all Second Tranche Holders as soon as practicable thereafter.
Upon the receipt of such certification by the Secretary of the
Company, each Second Tranche Warrant Certificate shall automatically
represent 50.5% of the Warrants indicated on the first page of the
Second Tranche Warrant Certificate (as adjusted from time to time as
provided therein). Upon notification to the Second Tranche Holders
that a reduction has occurred and upon the filing of such
certification, no further action is required to effect the reduction.
In the event a reduction is effected in accordance herewith, (x) upon
the request of any Second Tranche Holder and the surrender of such
Holder's Second Tranche Warrant Certificate, the Company shall prepare
and deliver a new Second Tranche Warrant Certificate reflecting the
reduced number of Warrants or (y) upon the request of the Company,
each Holder shall surrender such Holder's Second Tranche Warrant
Certificate and the Company shall prepare and deliver a new Second
Tranche Warrant Certificate reflecting the reduced number of
Warrants."
6. Miscellaneous. Section 11 is hereby amended as follows:
-------------
(a) Section 11(c) is hereby amended in its entirety to read as follows:
"Amendment; Notice. No supplement, modification, waiver or
-----------------
termination of this Agreement (including without limitation any
amendment or modification of any defined term used herein which
is defined in any other agreement or instrument referred to
herein) shall be binding unless agreed to in writing by the
Company and the holders of Warrants and Warrant Shares
representing 60% of the Warrant Shares issuable hereunder,
excluding any Warrant Shares
4
sold to the public pursuant to an effective registration
statement or Rule 144 under the Securities Act. Notwithstanding
the foregoing, with respect to (i) any supplement, modification,
waiver or termination which relates only to rights or obligations
of the First Tranche Warrants, such supplement, modification,
waiver or termination must be signed by the Holders of First
Tranche Warrants and Warrant Shares representing 60% of the
Warrant Shares issuable under the First Tranche Warrant
Certificates, rather than the holders of Warrants and Warrant
Shares representing 60% of all Warrant Shares issuable hereunder,
excluding any Warrant Shares sold to the public pursuant to an
effective registration statement or Rule 144 under the Securities
Act, and (ii) any supplement, modification, waiver or termination
which relates only to rights or obligations of the Second Tranche
Warrants, such supplement, modification, waiver or termination
must be signed b y the Holders of Second Tranche Warrants and
Warrant Shares representing 60% of the Warrant Shares issuable
under the Second Tranche Warrant Certificates, rather than the
holders of Warrants and Warrant Shares representing 60% of all
Warrant Shares issuable hereunder, excluding any Warrant Shares
sold to the public pursuant to an effective registration
statement or Rule 144 under the Securities Act. In the event that
less than 100% of the Holders of the relevant Warrants consent to
a supplement, modification, waiver or termination, the Company
shall promptly provide notice of the adoption of such supplement,
modification, waiver or termination, to each non-consenting
Holder at the Holder's address as it appears on the records of
the Company."
(b) Section 11(m) is amended in its entirety to read as follows:
"Credit Agreement and Warrant Certificates. Nothing in this Agreement
-----------------------------------------
or Exhibits A, C or D is intended to permit any action or event which
is prohibited by the Credit Agreement or by the Warrant Certificates,
as long as the Credit Agreement or the Warrant Certificates,
respectively, remain in effect."
7. Schedule 3(d) is amended in its entirety as reflected on Schedule 3(d)
attached hereto.
8. General.
-------
(a) Confirmation of the Agreement. Except as amended hereby, the Agreement
-----------------------------
shall remain in full force and effect and it hereby ratified and
confirmed in all respects.
(b) References to the Agreement. Each reference in the Agreement to "this
---------------------------
Agreement", "hereunder" or "hereof", or words of like import, and each
reference to the Agreement in any and all instruments or documents
provided for in the Agreement or delivered or to be delivered
thereunder or in connection therewith, shall, except where the context
otherwise requires, be deemed a reference to the Agreement as amended
hereby.
(c) Defined Terms. Capitalized terms used herein which are not otherwise
-------------
defined are used with the meanings ascribed to them in the Agreement.
5
IN WITNESS WHEREOF, the undersigned have caused this First Amendment to be
duly executed as of the date first above written.
APW LTD.
By: /s/ Michael Gasick
----------------------------
Name: Michael Gasick
------------------------
Title: Treasurer
-----------------------
BANK OF AMERICA, NATIONAL ASSOCIATION
By: /s/ M. Duncan McDuffie
--------------------------------------
Name: M. Duncan McDuffie
Title: Managing Director
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
BANK ONE, NA (Main Office Chicago)
By: /s/ Thomas T. Bower
--------------------------------------
Name: Thomas T. Bower
Title: Senior Vice President
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
THE CHASE MANHATTAN BANK (as successor to The
Chase Manhattan Bank)
By: /s/ Michael Lancia
--------------------------------------
Name: Michael Lancia
Title: Vice President
Attention:
Facsimile: 212-622-4834
As a Holder of a First Tranche Warrant Certificate
FIRST UNION NATIONAL BANK
By: /s/ William W. Teegarder
--------------------------------------
Name: William W. Teegarder
Title: Senior Vice President
Attention:
Facsimile: 404-332-1396
As a Holder of a First Tranche Warrant Certificate
WEST REGISTER INVESTMENTS
By: /s/ T.J. Smith
--------------------------------------
Name: T.J. Smith
Title: Senior Manager
Specialised Lending Services
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH
By: /s/ Shinichiro Monechika
----------------------------------------------
Name: Shinichiro Monechika
Title: Deputy General Manager
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
CREDIT LYONNAIS CHICAGO BRANCH
By: /s/ Richard Teitelbaum
----------------------------------------------
Name: Richard Teitelbaum
Title: Vice President
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
U.S. BANK NATIONAL ASSOCIATION
By: /s/ Greg Wilson
----------------------------------------------
Name: Greg Wilson
Title: A.V.P.
Attention:
Facsimile: 612-973-2148
As a Holder of a First Tranche Warrant Certificate
THE FUJI BANK, LIMITED
By: /s/ John D. Doye
----------------------------------------------
Name: John D. Doye
Title: Vice President
Attention: John Doye
Facsimile: 212 282 4386
As a Holder of a First Tranche Warrant Certificate
FLEET NATIONAL BANK
By:_______________________________________
Name:__________________________________
Title:_________________________________
Attention:_____________________________
Facsimile:_____________________________
As a Holder of a First Tranche Warrant Certificate
THE DAI-ICHI KANGYO BANK, LTD.
By: /s/ Nobuyasu Fukatsu
----------------------------------------------
Name: Nobuyasu Fukatsu
Title: General Manager
Attention: Michael Pleasants
Facsimile: 312 876 2011
As a Holder of a First Tranche Warrant Certificate
M&I CAPITAL MARKETS GROUP, LLC
By: /s/ Michael Vellon
----------------------------------------------
Name: Michael Vellon
Title: Vice President
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
BNP PARIBAS
By: /s/ Kathryn B. Quinn
----------------------------------------------
Name: Kathryn B. Quinn
Title: Vice President
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
SOCIETE GENERALE
By: /s/ Eric E.O. Siebert Jr.
----------------------------------------------
Name: Eric E.O. Siebert Jr.
Title: Director
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
THE BANK OF NEW YORK
By:_______________________________________
Name:__________________________________
Title:_________________________________
Attention:_____________________________
Facsimile:_____________________________
As a Holder of a First Tranche Warrant Certificate
WACHOVIA CAPITAL INVESTMENTS
By: /s/ William W. Teegarder
----------------------------------------------
Name: William W. Teegarder
Title:
Attention:
Facsimile: 404 332 1396
As a Holder of a First Tranche Warrant Certificate
SUMITOMO MITSUI BANKING CORPORATION
By: /s/ David A. Buck
----------------------------------------------
Name: David A. Buck
Title: Senior Vice President
Attention:
Facsimile:
As a Holder of a First Tranche Warrant Certificate
THE MITSUBISHI TRUST & BANKING CORPORATION
By: /s/ Thomas A. Pennington
--------------------------------------
Name: Thomas A. Pennington
----------------------------------
Title: Executive Vice President
--------------------------------
Attention:_____________________________
Facsimile:_____________________________
As a Holder of a First Tranche Warrant Certificate
J.P. MORGAN AS AGENT FOR THE CHASE MANHATTAN BANK
By:_______________________________________
Name:__________________________________
Title:_________________________________
Attention:_____________________________
Facsimile:_____________________________
As a Holder of a First Tranche Warrant Certificate
WILLIAM E. SIMON & SONS SPECIAL SITUATIONS
PARTNERS II, L.P.
By: /s/ Dale Leshaw
--------------------------------------
Name: Dale Leshaw
---------------------------------
Title: Principal
--------------------------------
Attention:_____________________________
Facsimile:_____________________________
As a Holder of a First Tranche Warrant Certificate
OCM PRINCIPAL OPPORTUNITIES FUND II, L.P.
By: Oaktree Capital Management, LLC,
its general partner
By: /s/ Christopher S. Brothers
--------------------------------------
Name: Christopher S. Brothers
---------------------------------
Title: Managing Director
--------------------------------
Attention:_____________________________
Facsimile:_____________________________
As a Holder of a First Tranche Warrant Certificate
By: /s/ [illegible in original]
OCM OPPORTUNITIES FUND III, L.P.
By: Oaktree Capital Management, LLC,
its general partner
By: /s/ John Frank
--------------------------------------
Name: John Frank
---------------------------------
Title: General Counsel
--------------------------------
Attention:_____________________________
Facsimile:_____________________________
By: /s/ [Illegible in Original]
--------------------------------------
As a Holder of a First Tranche Warrant Certificate
BANK OF AMERICA, NATIONAL ASSOCIATION
By: /s/ M. Duncan Mc Duffie
-----------------------------------
Name: M. Duncan Mc Duffie
------------------------------
Title: Managing Director
-----------------------------
Attention: M. Duncan Mc Duffie
-------------------------
Facsimile: 213-228-6003
-------------------------
As a party to whom a Second Tranche Warrant
Certificate will be issued.
THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO
BRANCH
By: /s/ Shinichiro Monechika
-----------------------------------
Name: Shinichiro Monechika
------------------------------
Title: Deputy General Manager
-----------------------------
Attention:__________________________
Facsimile:__________________________
As a party to whom a Second Tranche Warrant
Certificate will be issued.
BANK ONE, NA (Main Office Chicago)
By: /s/ Thomas T. Bower
-----------------------------------
Name: Thomas T. Bower
------------------------------
Title: Senior Vice President
-----------------------------
Attention:__________________________
Facsimile:__________________________
As a party to whom a Second Tranche Warrant
Certificate will be issued.
BNP PARIBAS
By: /s/ Kathryn Quinn
---------------------------------------
Name: Kathryn Quinn
Title: Vice President
Attention:
Facsimile:
As a party to whom a Second Tranche Warrant
Certificate will be issued.
CREDIT LYONNAIS CHICAGO BRANCH
By: /s/ Richard Teitelbaum
-----------------------------------
Name: Richard Teitelbaum
Title: Vice President
Attention:
Facsimile:
As a party to whom a Second Tranche Warrant
Certificate will be issued.
THE DAI-ICHI KANGYO BANK, LTD.
By: /s/ Nobuyasu Fukatsu
-----------------------------------
Name: Nobuyasu Fukatsu
Title: General Manager
Attention: Michael Pleasents
Facsimile: 312-876-2011
As a party to whom a Second Tranche Warrant
Certificate will be issued.
FIRST UNION NATIONAL BANK
By: /s/ William W. Telgarden
---------------------------------------
Name: William W. Telgarden
Title: Senior Vice President
Attention:
Facsimile: 424-332-1396
As a party to whom a Second Tranche Warrant
Certificate will be issued.
THE FUJI BANK, LIMITED
By: /s/ John D. Doyle
---------------------------------------
Name: John D. Doyle
Title: Vice President
Attention: John D. Doyle
Facsimile: (212) 282-4386
As a party to whom a Second Tranche Warrant
Certificate will be issued.
JP MORGAN CHASE BANK
By: /s/ Michael Lancia
---------------------------------------
Name: Michael Lancia
Title: Vice President
Attention:
Facsimile:
As a party to whom a Second Tranche Warrant
Certificate will be issued.
M&I CAPITAL MARKETS GROUP, LLC
By: /s/ Michael Vellon
-----------------------------------
Name: Michael Vellon
------------------------------
Title: Vice President
-----------------------------
Attention: Michael Vellon
-------------------------
Facsimile: 414-765-7625
-------------------------
As a party to whom a Second Tranche Warrant
Certificate will be issued.
THE MITSUBISHI TRUST & BANKING CORPORATION
By: /s/ Thomas A. Pennington
-----------------------------------
Name: Thomas A. Pennington
------------------------------
Title: Executive Vice President
-----------------------------
Attention: Michael Dorin
-------------------------
Facsimile: (212) 644-6825
-------------------------
As a party to whom a Second Tranche Warrant
Certificate will be issued.
OCM PRINCIPAL OPPORTUNITIES FUND II
By: Oaktree Capital Management, LLC,
its general partner
By: /s/ Christopher S. Brothers
-----------------------------------
Name: Christopher S. Brothers
------------------------------
Title: Managing Director
-----------------------------
Attention: Christopher S. Brothers
-------------------------
Facsimile: 213-830-6395
-------------------------
As a party to whom a Second Tranche Warrant
Certificate will be issued.
By: /s/ [illegible in original]
OCM OPPORTUNITIES FUND III
By: Oaktree Capital Management, LLC,
its general partner
By: /s/ John Frank
-----------------------------------
Name: John Frank
------------------------------
Title: General Counsel
-----------------------------
Attention:__________________________
Facsimile:__________________________
By: /s/ [Illegible in Original]
--------------------------------------
As a party to whom a Second Tranche Warrant
Certificate will be issued.
THE ROYAL BANK OF SCOTLAND PLC
By: /s/ T.J. Smith
-----------------------------------
Name: T.J. Smith
------------------------------
Title: Senior Manager,
Specialized Lending Services
-----------------------------
Attention:__________________________
Facsimile:__________________________
As a party to whom a Second Tranche Warrant
Certificate will be issued.
SOCIETE GENERALE
By: /s/ Eric E.O. Siebert Jr.
-------------------------------
Name: Eric E.O. Siebert Jr.
Title: Director
Attention: Eric Siebert
Facsimile:
As a party to whom a Second Tranche
Warrant Certificate will be issued.
SUMITOMO MITSUI BANKING CORPORATION
By: /s/ David A. Buck
----------------------------------
Name: David A. Buck
Title: Senior Vice President
Attention:
Facsimile:
As a party to whom a Second Tranche
Warrant Certificate will be issued.
U.S. BANK NATIONAL ASSOCIATION
By: /s/ Greg Wilson
-----------------------------------
Name: Greg Wilson
Title: A.V.P.
Attention: Greg Wilson
Facsimile: 612-973-2148
As a party to whom a Second Tranche Warrant
Certificate will be issued.
WILLIAM E. SIMON & SONS SPECIAL SITUATIONS
PARTNERS II, L.P.
By: /s/ Dale Leshaw
-----------------------------------
Name: Dale Leshaw
Title: Principal
Attention:
Facsimile:
As a party to whom a Second Tranche Warrant
Certificate will be issued.
List of Schedules and Exhibits
------------------------------
Schedule A: List of Holders of First Tranche Warrant Certificates on date
hereof
Schedule B: List of Investors under Second Amendment to the Credit
Agreement, who will be issued Second Tranche Warrants.
Schedule 3(d): List of APW Ltd. Options Plan
Exhibit C: Amendment Number One to First Tranche Warrant Certificates.
Exhibit D: Second Tranche Warrant Certificate.
SCHEDULE A
FIRST TRANCHE WARRANT CERTIFICATE HOLDERS
Number of
Investor Shares
- -------- ------
BANK OF AMERICA, NATIONAL ASSOCIATION ............................... 177,135
BANK ONE, NA (Main Office Chicago) .................................. 116,536
THE CHASE MANHATTAN BANK ............................................ 147,612
FIRST UNION NATIONAL BANK ........................................... 24,861
WEST REGISTER INVESTMENTS (designated affiliate of THE ROYAL BANK
OF SCOTLAND PLC) .................................................... 118,090
THE BANK OF TOKYO-MITSUBISHI, LTD.,
CHICAGO BRANCH ...................................................... 118,090
CREDIT LYONNAIS CHICAGO BRANCH ...................................... 88,567
U.S. BANK NATIONAL ASSOCIATION ...................................... 48,613
THE FUJI BANK, LIMITED .............................................. 88,567
FLEET NATIONAL BANK ................................................. 88,567
THE DAI-ICHI KANGYO BANK, LTD. ...................................... 44,284
M&I CAPITAL MARKETS GROUP, LLC (designated affiliate of M&I
MARSHALL & ILSLEY BANK) ............................................. 44,284
BNP PARIBAS ......................................................... 59,045
SOCIETE GENERALE .................................................... 59,045
THE BANK OF NEW YORK ................................................ 44,284
WACHOVIA CAPITAL INVESTMENTS (designated affiliate of WACHOVIA
BANK, N.A.) ......................................................... 27,969
SUMITOMO MITSUI BANKING CORPORATION ................................. 59,045
THE MITSUBISHI TRUST & BANKING CORPORATION .......................... 44,284
J.P. MORGAN as agent for THE CHASE MANHATTAN BANK ................... 62,153
WILLIAM E. SIMON & SONS SPECIAL SITUATIONS PARTNERS II, L.P ......... 15,538
OCM PRINCIPAL OPPORTUNITIES FUND II, L.P ............................ 287,010
OCM OPPORTUNITIES FUND III, L.P. .................................... 7,769
- -------------------------------------------------------------------------------
1,771,348
SCHEDULE B
SECOND TRANCHE WARRANT CERTIFICATE HOLDERS
Number of
Investor Shares
- -------- ------
BANK OF AMERICA, NATIONAL ASSOCIATION ............................. 345,561
THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH ................ 230,374
BANK ONE, NA (Main Office Chicago) ................................ 227,343
BNP PARIBAS ....................................................... 115,187
CREDIT LYONNAIS CHICAGO BRANCH .................................... 172,780
THE DAI-ICHI KANGYO BANK, LTD. .................................... 86,390
FIRST UNION NATIONAL BANK ......................................... 48,500
THE FUJI BANK, LIMITED ............................................ 172,780
JP MORGAN CHASE BANK .............................................. 495,607
M&I CAPITAL MARKETS GROUP, LLC .................................... 86,390
THE MITSUBISHI TRUST & BANKING CORPORATION ........................ 86,390
OCM PRINCIPAL OPPORTUNITIES FUND II ............................... 651,293
OCM OPPORTUNITIES FUND III ........................................ 128,828
THE ROYAL BANK OF SCOTLAND PLC .................................... 230,374
SOCIETE GENERALE .................................................. 115,187
SUMITOMO MITSUI BANKING CORPORATION ............................... 115,187
U.S. BANK NATIONAL ASSOCIATION .................................... 94,836
WILLIAM E. SIMON & SONS SPECIAL SITUATIONS
PARTNERS II, L.P. ................................................. 52,603
- -------------------------------------------------------------------------------
TOTAL ............................................................. 3,455,610
Schedule 3(d)
List of APW Ltd. Options Plan
Amount Outstanding Number of Securities with a
Name as of May 15, 2001* Below Warrant Exercise Price
---- ------------------- ----------------------------
APW Ltd. 2000 Stock Option Plan 3,565,120 42,871
APW Ltd. 2001 Stock Option Plan 1,073,350 0
APW Ltd. Outside Director Stock 24,000 0
Option Plan
APW Ltd. Deferred Stock Plan 562,447 562,447
(For 4 participants)
Amount Outstanding Number of Securities with a
as of Below Second Tranche
Name December 13, 2001* Warrant Exercise Price
---- ------------------ ----------------------
APW Ltd. 2000 Stock Option Plan 4,609,827 0
APW Ltd. 2001 Stock Option Plan 1,837,600 0
APW Ltd. Outside Director Stock 20,000 0
Option Plan
APW Ltd. Deferred Stock Plan 558,855 0
(For 3 participants)
APW Ltd. also has an employee stock purchase plan allowing employees to
purchase shares of Common Stock at a discount and on May 15, 2001 issued
warrants for 2,069,831 shares of Common Stock to its lenders.
Effective December 31, 2001 and in accordance with the Asset Purchase
Agreement between APW Ltd. and Connell Limited Partnership, the Seller will
likely return 754,717 shares of Common Stock to APW Ltd.
* After consideration of cancellations and surrenders.
EXHIBIT C
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT").
--------------
SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACT OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE AND AN
OPINION OF COUNSEL WITH RESPECT TO SUCH EXEMPTION IS PROVIDED TO THE EXTENT
REQUIRED IN A CERTAIN WARRANT AND REGISTRATION RIGHTS AGREEMENT DATED AS OF MAY
15, 2001, AS AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME,
ENTERED INTO AMONG THE COMPANY AND CERTAIN HOLDERS OF SECURITIES OF THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
TERMS AND PROVISIONS OF A CERTAIN WARRANT AND REGISTRATION RIGHTS AGREEMENT
DATED AS OF MAY 15, 2001, AS AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM
TIME TO TIME, ENTERED INTO AMONG THE COMPANY AND CERTAIN HOLDERS OF SECURITIES
OF THE COMPANY, A COPY OF WHICH IS ON FILE AT THE COMPANY'S PRINCIPAL OFFICES.
UPON WRITTEN REQUEST TO THE COMPANY'S SECRETARY, A COPY OF SUCH AGREEMENT WILL
BE PROVIDED WITHOUT CHARGE TO APPROPRIATELY INTERESTED PERSONS.
APW LTD.
FIRST AMENDMENT TO WARRANT CERTIFICATE
Original Dated as of May 15, 2001
Amendment Dated as of December 13, 2001
APW Ltd., a Bermuda company (the "Company"), pursuant to the First
-------
Amendment to Warrant and Registration Rights Agreement dated the date hereof,
hereby amends the Warrant Certificate issued to _____________, or registered
assigns (the "Holder"), dated _____________, 2001 for ____________ Warrants (as
------
adjusted from time to time as provided herein), as follows:
1. Title. The Warrant Certificate amended hereby shall be deemed to be
-----
called the "First Tranche Warrant Certificate" for purposes of the Warrant and
Registration Rights Agreement.
2. Introductory Paragraph. The introductory paragraph of the Warrant
----------------------
Certificate is amended as follows:
a. The Exercise Price shall be U.S.$1.98 per share (as adjusted
from time to time as provided herein).
1
b. The Commencement Date shall be October 1, 2002 (subject to
acceleration as provided in Section 3(f)).
-------------
3. Duration and Exercise of Warrants. Section 3(f) of the Warrant
---------------------------------
Certificate is amended in its entirety to read as follows:
"The beginning of the Exercise Period shall be accelerated to permit
the Holder of this Warrant Certificate to exercise this Warrant
immediately (i) prior to the consummation of an Organic Change (as
defined in Section 7(d)); (ii) upon the occurrence of an event which
-------------
with the passage of time would result in the occurrence of a
Separation Date (as defined in the Company Rights Plan) under the
Company Rights Plan (as defined hereunder) or (iii) subsequent to a
Refinancing Event. A "Refinancing Event" shall be deemed to have
-----------------
occurred when the Company refinances or repays all the Obligations (as
defined in the Credit Agreement) under the Credit Agreement such that
the Termination Date (as defined in the Credit Agreement) shall have
occurred under the Credit Agreement. No Holder shall be required to
provide any representation (other than as to its title to this Warrant
or the Warrant Shares), covenants or indemnification in connection
with an Organic Change, a Separation Date or a Refinancing Event,
provided, however that a Holder may be required to complete a
-------- -------
customary letter of transmittal or other comparable document which is
sent to all other public shareholders of the Company."
4. Adjustments of Price and Number of Warrant Shares. Section 7 of the
-------------------------------------------------
Warrant Certificate is amended as follows:
(a) Section 7(d) of the Warrant Certificate is revised to delete
the words "Subject to the terms of Section 7(j)".
------------
(b) Section 7(h) of the Warrant Certificate is revised in its
entirety to read as follows:
"Certain Exceptions to Antidilution Protection.
---------------------------------------------
Notwithstanding anything to the contrary in this Section 7,
---------
there shall be no adjustment to the Exercise Price or to the
number of Warrant Shares issuable upon exercise hereof: (i) in
connection with the sale or issuance of the Warrant
Certificates for an initial aggregate of 1,771,348 Common
Shares issued to the Lenders (or their Affiliates) under the
Credit Agreement and warrant certificates for an initial
aggregate of 298,482 Common Shares issued to the UK Banks
under the UK Credit Facilities on the Original Issuance Date
and all warrants issued upon the partial exercise, transfer or
division of, or in substitution for, any such warrants, or any
adjustment to the number of shares issuable pursuant thereto
in accordance with the terms of any thereof; (ii) the issuance
of any rights under the Company Rights Plan; (iii) an exercise
of options outstanding under the Company's stock plans on the
Original Issuance Date, which options are listed on Schedule
3(d) to the
2
Warrant and Registration Rights Agreement or (iv) the
reduction in the Exercise Price of the Warrant Shares issuable
upon exercise hereof pursuant to the First Amendment to this
First Tranche Warrant Certificate dated as of December 13,
2001."
(c) Section 7(j) of the Warrant Certificate is amended in its
entirety to read as follows:
"Reserved."
5. Notice Address. The notice address for the Company found in
--------------
Sections 3(c) and 12 shall henceforth be N. 22 West 23685 Ridgeview Parkway
West, Waukesha, WI 53188-1013.
6. General.
-------
(a) Confirmation of the Warrant Certificate. Except as amended
---------------------------------------
hereby, the Warrant Certificate shall remain in full force and effect
and it hereby ratified and confirmed in all respects.
(b) Effect of Amendment. Subsequent transfers or exercises of the
-------------------
Warrant Certificate shall be transfers or exercises, as the case may
be, of the Warrant Certificate, as amended.
(c) References to the Warrant Certificate. Each reference in the
-------------------------------------
Warrant Certificate to "this Warrant Certificate", "hereunder" or
"hereof", or words of like import, and each reference to the Warrant
Certificate in any and all instruments or documents provided for in
the Warrant Certificate or delivered or to be delivered thereunder or
in connection therewith, shall, except where the context otherwise
requires, be deemed a reference to the Warrant Certificate as amended
hereby.
(d) Defined Terms. Capitalized terms used herein which are
-------------
not otherwise defined are used with the meanings ascribed to them in
the Warrant Certificate.
IN WITNESS WHEREOF, the Company has caused this First Amendment to Warrant
Certificate to be executed by its officer thereunto duly authorized as of the
date hereof.
APW LTD.
By:
-----------------------------
Title:
3
EXHIBIT D
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT").
--------------
SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACT OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE AND AN
OPINION OF COUNSEL WITH RESPECT TO SUCH EXEMPTION IS PROVIDED TO THE EXTENT
REQUIRED IN A CERTAIN WARRANT AND REGISTRATION RIGHTS AGREEMENT DATED AS OF MAY
15, 2001, AS AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME,
ENTERED INTO AMONG THE COMPANY AND CERTAIN HOLDERS OF SECURITIES OF THE COMPANY.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
TERMS AND PROVISIONS OF A CERTAIN WARRANT AND REGISTRATION RIGHTS AGREEMENT
DATED AS OF MAY 15, 2001, AS AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM
TIME TO TIME, ENTERED INTO AMONG THE COMPANY AND CERTAIN HOLDERS OF SECURITIES
OF THE COMPANY, A COPY OF WHICH IS ON FILE AT THE COMPANY'S PRINCIPAL OFFICES.
UPON WRITTEN REQUEST TO THE COMPANY'S SECRETARY, A COPY OF SUCH AGREEMENT WILL
BE PROVIDED WITHOUT CHARGE TO APPROPRIATELY INTERESTED PERSONS.
APW LTD.
SECOND TRANCHE WARRANT CERTIFICATE
Dated as of December 13, 2001
Warrants to Purchase Common Shares
----------------------------------
APW Ltd., a Bermuda company (the "Company"), hereby certifies that,
-------
for value received, _____________, or registered assigns (the "Holder"), is the
------
registered owner of ____________ Warrants (as adjusted from time to time as
provided herein, the "Warrants"), each of which will entitle the registered
--------
owner thereof to purchase one share, as adjusted from time to time as provided
herein (each such share being a "Warrant Share" and all such shares being the
-------------
"Warrant Shares"), of the common shares, par value $0.01 per share, of the
--------------
Company, including the related preferred stock purchase rights associated with
each of the common shares (the "Common Shares"), at the exercise price of
-------------
U.S.$0.01 per share (as adjusted from time to time as provided herein, the
"Exercise Price") during the period (the "Exercise Period") from and after
-------------- ---------------
October 1, 2002 (subject to acceleration as provided in Section 3(f)) (such
-------------
date, the "Commencement Date") until May 15, 2006, all subject to the following
-----------------
terms and conditions. Certain capitalized terms are defined in Section 11
----------
hereof.
1
SECTION 1. Registration. The Company shall register each Warrant upon
------------
records to be maintained by the Company for that purpose in the name of the
record holder of such Warrant from time to time. The Company may deem and treat
the registered holder of each Warrant as the absolute owner thereof for the
purpose of any exercise thereof, any distribution to the holder thereof and for
all other purposes.
SECTION 2. Transfers and Exchanges of Warrants and Warrant Shares.
------------------------------------------------------
(a) Registration of Transfers and Exchanges. The Company shall register the
---------------------------------------
transfer of any Warrants upon records to be maintained by the Company for that
purpose upon surrender of this Warrant Certificate, with the Form of Assignment
attached hereto appropriately completed and duly signed, to the Company at the
office specified in or pursuant to Section 3(c). Upon any such registration of
------------
transfer and compliance with such terms of transfer, a new Warrant Certificate,
in substantially the form of this Warrant Certificate, evidencing the Warrants
so transferred shall be issued to the transferee and a new Warrant Certificate,
in similar form, evidencing the remaining Warrants not so transferred, if any,
shall be issued to the then registered holder thereof.
(b) Warrants Exchangeable for Different Denominations. This Warrant
-------------------------------------------------
Certificate is exchangeable, upon the surrender hereof by the holder hereof at
the office of the Company specified in or pursuant to Section 3(c), for new
------------
Warrant Certificates, in substantially the form of this Warrant Certificate,
evidencing in the aggregate the right to purchase the number of Warrant Shares
which may then be purchased hereunder, each of such new Warrant Certificates to
be dated the date of such exchange and to represent the right to purchase such
number of Warrant Shares as shall be designated by said holder hereof at the
time of such surrender.
SECTION 3. Duration and Exercise of Warrants.
---------------------------------
(a) Warrants shall be exercisable by the registered holder thereof on any
business day during the Exercise Period.
(b) Subject to the provisions of this Warrant Certificate, including
adjustments to the number of Warrant Shares issuable on the exercise of each
Warrant and to the Exercise Price pursuant to Section 7, the holder of each
---------
Warrant during the Exercise Period shall have the right to purchase from the
Company (and the Company shall be obligated to issue and sell to such holder of
a Warrant) at the Exercise Price one fully paid Warrant Share which is
non-assessable.
(c) Subject to Sections 4, 8 and 10, upon surrender of this Warrant
---------- - --
Certificate, with the Form of Election to Purchase attached hereto duly filled
in and signed, to the Company at its office at N. 22 West 23685 Ridgeview
Parkway West, Waukesha, WI 53188-1013, Attention: Chief Financial Officer, with
a copy to Quarles & Brady LLP, 411 East Wisconsin Avenue, Milwaukee, WI
53202-4497, Attn: Anthony W. Asmuth, or at such other address as the Company may
specify in writing to the then registered holder of the Warrants, and upon
either (i) payment of the Exercise Price multiplied by the number of Warrant
Shares then issuable upon exercise of the Warrants being exercised in lawful
money of the United States of America or (ii) notice by the registered Holder of
this Warrant Certificate of its election to exercise the Warrants evidenced by
this Warrant Certificate on a cashless basis in the manner described in
subsection (d) of this Section 3, all as specified by the Holder of this Warrant
- -------------- ---------
Certificate in the Form of Election to Purchase, the Company shall promptly
issue and cause to be delivered to or upon the written order of the registered
Holder of such Warrants, and in such name or names as such
2
registered Holder may designate, one or more certificates for the Warrant Shares
issued upon such exercise of such Warrants. Any Person so designated to be named
therein shall be deemed to have become Holder of record of such Warrant Shares
as of the Date of Exercise of such Warrants.
The "Date of Exercise" of any Warrant means the date on which the Company
----------------
shall have received (i) this Warrant Certificate, with the Form of Election to
Purchase attached hereto appropriately completed and duly signed, and (ii)
unless the Holder of this Warrant Certificate makes the election described in
subsection (d) of this Section 3, payment of the Exercise Price for such
- -------------- ---------
Warrant.
(d) In lieu of paying the Exercise Price upon exercise of the Warrants, the
Holder of this Warrant Certificate may elect to receive a number of Warrant
Shares whose aggregate Market Price as of the Date of Exercise is equal to the
fair value of this Warrant Certificate (or the portion hereof evidencing the
number of Warrants then being exercised) on such date, in which event the
Company shall issue to the Holder of this Warrant Certificate, upon receipt of
notice of such election, a number of Warrant Shares equal to (i) the number of
Warrant Shares that would otherwise be issuable upon payment of the Exercise
Price of the Warrants then being exercised minus (ii) the number of Common
Shares having an aggregate Market Price equal to the product obtained by
multiplying the Exercise Price by the number of Warrant Shares otherwise
issuable upon payment of the Exercise Price of the Warrants then being
exercised.
(e) The Warrants evidenced by this Warrant Certificate shall be
exercisable, either as an entirety or, from time to time, for part only of the
number of Warrants evidenced by this Warrant Certificate. If less than all of
the Warrants evidenced by this Warrant Certificate are exercised at any time,
the Company shall issue, at its expense, a new Warrant Certificate, in
substantially the form of this Warrant Certificate, for the remaining number of
Warrants evidenced by this Warrant Certificate.
(f) Subject to the terms of Section 7(j), the beginning of the Exercise
------------
Period shall be accelerated to permit the Holder of this Warrant Certificate to
exercise this Warrant immediately (i) prior to the consummation of an Organic
Change (as defined in Section 7(d)); (ii) upon the occurrence of an event which
-------------
with the passage of time would result in the occurrence of a Separation Date (as
defined in the Company Rights Plan) under the Company Rights Plan (as defined
hereunder) or (iii) subsequent to a Refinancing Event. A "Refinancing Event "
-----------------
shall be deemed to have occurred when the Company refinances or repays all the
Obligations (as defined in the Credit Agreement) under the Credit Agreement such
that the Termination Date (as defined in the Credit Agreement) shall have
occurred under the Credit Agreement. No Holder shall be required to provide any
representation (other than as to its title to this Warrant or the Warrant
Shares), covenants or indemnification in connection with an Organic Change, a
Separation Date or a Refinancing Event, provided, however that a Holder may be
-------- -------
required to complete a customary letter of transmittal or other comparable
document which is sent to all other public shareholders of the Company. If a
Warrant is exercised on or prior to July 31, 2002 pursuant to an acceleration
under subsection 3(f)(ii), any Holder who exercises such Warrant must either (x)
-------------------
agree not to transfer 100% of the Warrant Shares issuable to such Holder upon
such exercise to a non-Affiliate prior to October 1, 2002 or (y) agree to repay
to the Company, in the event that a warrant reduction pursuant to Section 10 of
the Warrant and Registration Rights Agreement occurs, all of the net proceeds,
without interest, which such Holder received in connection with
3
such transfer. If a Warrant is exercised after July 31, 2002 and prior to
October 1, 2002 pursuant to an acceleration under subsection 3(f)(ii), any
-------------------
Holder who exercises such Warrant must either (x) agree not to transfer 49.5% of
the Warrant Shares issuable to such Holder upon such exercise to a non-Affiliate
prior to October 1, 2002 or (y) agree to repay to the Company, in the event that
a warrant reduction pursuant to Section 10 of the Warrant and Registration
Rights Agreement occurs, 49.5% of the net proceeds, without interest, which such
Holder received in connection with such transfer.
SECTION 4. Payment of Taxes. Subject to applicable law, the Company will
----------------
pay all transfer and stock issuance taxes attributable to the issuance of the
Warrants and the Warrant Shares; provided, however, that the Company shall not
-------- -------
be required to pay any tax in respect of the transfer of Warrants.
SECTION 5. Mutilated or Missing Warrant Certificate. If this Warrant
----------------------------------------
Certificate shall be mutilated, lost, stolen or destroyed, the Company will,
upon request by the registered Holder of this Warrant Certificate, issue, in
exchange for and upon cancellation of the mutilated Warrant Certificate, or in
substitution for the lost, stolen or destroyed Warrant Certificate, a new
Warrant Certificate, in substantially the form of this Warrant Certificate, of
like tenor and representing the equivalent number of Warrants, but, in the case
of loss, theft or destruction, only upon receipt of evidence satisfactory to the
Company of such loss, theft or destruction of this Warrant Certificate and, if
requested by the Company, a written agreement of indemnity from the Holder
satisfactory to the Company or a lost certificate bond.
SECTION 6. Reservation, Listing and Issuance of Warrant Shares.
---------------------------------------------------
(a) The Company will at all times have authorized, and reserve and keep
available, free from preemptive rights, for the purpose of enabling it to
satisfy any obligation to issue Warrant Shares upon the exercise of the
Warrants, the number of shares of Warrant Shares issuable upon exercise of the
Warrants.
(b) Before taking any action which could cause an adjustment pursuant to
Section 7 reducing the Exercise Price below the then par value (if any) of the
- ---------
Warrant Shares, the Company will take any corporate action which may be
necessary in order that the Company may validly and legally issue at the
Exercise Price as so adjusted Warrant Shares that are fully paid and
non-assessable.
(c) The Company covenants that all Warrant Shares will, upon issuance in
accordance with the terms of this Warrant Certificate, be (i) duly authorized,
fully paid and non-assessable, and (ii) free from all taxes with respect to the
issuance thereof and from all adverse claims, liens, charges and security
interests created by the Company.
SECTION 7. Adjustments of Price and Number of Warrant Shares.
-------------------------------------------------
(a) Adjustment of Number of Warrant Shares Issuable. Upon each adjustment
-----------------------------------------------
of the Exercise Price pursuant to this Section 7, the Holder of a Warrant shall
---------
be entitled to purchase, at the Exercise Price in effect after such adjustment,
a number of Warrant Shares equal to the amount obtained by multiplying the
Exercise Price in effect immediately prior to such adjustment by the number of
Warrant Sha res issuable upon exercise of such Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.
4
(b) Subdivision or Combination of Stock. If the Company shall at any time
-----------------------------------
subdivide (whether by stock split, stock dividend, recapitalization or
otherwise) the outstanding Common Shares into a greater number of shares or pay
a dividend or make a distribution to holders of Common Shares in the form of
Common Shares, the Exercise Price in effect immediately prior to such
subdivision, payment or distribution shall be proportionately reduced;
conversely, if the outstanding Common Shares shall be combined into a smaller
number of shares (whether by reverse Shares split or otherwise), the Exercise
Price in effect immediately prior to such combination shall be proportionately
increased.
(c) Dividends and Rights Offerings.
------------------------------
(i) If the Company shall pay a dividend or distribution (including,
without limitation, a distribution in the form of securities of the
Company) upon the Common Shares, regardless of whether the Warrants are
otherwise then exercisable, the Company shall pay to the holder of this
Warrant Certificate, in respect of each Warrant Share issuable upon
exercise of the Warrants evidenced hereby, an amount equal, in the case of
a dividend in cash, to the amount per Common Share so payable or, in the
case of any other dividend, to the fair value per Common Share of the
property so payable, as determined, reasonably and in good faith, by the
board of directors of the Company.
(ii) If the Company shall effect an offering of Common Shares or other
stock pro rata among its stockholders or members, each Holder shall be
entitled, at such Holder's option, regardless of whether the Warrants are
otherwise then exercisable, to elect to participate in each and every such
offering as though its Warrants had been exercised and such Holder were, at
the time of any such rights offering, then a holder of that number of
Common Shares to which such Holder is then entitled on the exercise of its
Warrant.
(d) Adjustments for Consolidation, Amalgamation, Merger, Sale of Assets,
--------------------------------------------------------------------
Reorganization, etc. Subject to the terms of Section 7(j), if the Company (i)
- ------------------- ------------
consolidates with, amalgamates with or merges into any other entity and is not
the continuing or surviving corporation of such consolidation, amalgamation or
merger, or (ii) permits any other entity to consolidate with, amalgamate with or
merge into the Company and the Company is the continuing or surviving corporatio
n but, in connection with such consolidation, amalgamation or merger, the Common
Shares are changed into or exchanged for stock or other securities of any other
corporation or cash or any other assets, or (iii) transfers all or substantially
all of its properties and assets to any other entity, or (iv) effects a
recapitalization, capital reorganization or reclassification of the capital
stock of the Company in such a way that holders of Common Shares shall be
entitled to receive stock, securities, cash or assets with respect to or in
exchange for Common Shares (each of the transactions referred to in the
foregoing clauses (i) through (iv) being an "Organic Change"), then, and in each
----------- ---- --------------
such case, proper provision shall be made in form and substance satisfactory to
the Holders of Warrants and Warrant Shares representing 60% of the Warrant
Shares issuable under the Warrant and Registration Agreement, excluding any
Warrant Shares sold to the public pursuant to an effective registration
statement or Rule 144 under the Securities Act, so that, upon the basis and upon
the terms and in the manner provided in this subsection (d), the holder of this
--------------
Warrant Certificate, upon the exercise of each Warrant at any time after the
consummation of such Organic Change, shall be entitled to receive (at the
aggregate Exercise Price in effect for all Warrant Shares issuable upon such
exercise
5
immediately prior to such consummation as adjusted to the time of such
transaction), in lieu of Common Shares issuable upon such exercise prior to such
consummation, the stock and other securities, cash and assets to which such
holder would have been entitled upon such consummation if such holder had so
exercised such Warrant immediately prior thereto (subject to adjustments
subsequent to such corporate action as nearly equivalent as possible to the
adjustments provided for in this Section 7).
---------
(e) Notice of Adjustment. Upon any adjustment of any Exercise Price, then
--------------------
and in each such case the Company shall promptly deliver a notice to the
registered holder of the Warrants, which notice shall state the Exercise Price
resulting from such adjustment and the increase or decrease, if any, in the
number of shares purchasable at such price upon the exercise of each Warrant,
setting forth in reasonable detail the method of calculation and the facts upon
which such calculation is based.
(f) Other Notices. In case at any time:
-------------
(i) the Company shall declare any cash dividend on its Common
Shares;
(ii) the Company shall pay any dividend payable in stock upon its
Common Shares or make any distribution (other than regular cash dividends)
to the holders of its Common Shares;
(iii) the Company shall offer for subscription pro rata to the
holders of its Common Shares any additional shares of stock of any class or
other rights;
(iv) the Company shall authorize the distribution to all holders of
its Common Shares of evidence of its indebtedness or assets (other than
cash dividends or cash distributions payable out of earnings or earned
surplus or dividends payable in Common Shares);
(v) there shall be any Organic Change;
(vi) there shall be a voluntary or involuntary dissolution,
liquidation, bankruptcy, assignment for the benefit of creditors, or
winding up of the Company;
(vii) there shall have occurred any event which would trigger a
Separation Date under the Company Rights Plan; or
(viii) the Company proposes to take any other action or an event
occurs which would require an adjustment of the Exercise Price pursuant to
subsection (g) of this Section 7;
-------------- ---------
then, in any one or more of said cases, the Company shall give written notice,
addressed to the holder of this Warrant Certificate at the address of such
holder as shown on the books of the Company, of (1) the date on which the books
of the Company shall close or a record shall be taken for such dividend,
distribution or subscription rights, or (2) the date (or, if not then known, a
reasonable approximation thereof by the Company) on which such Organic Change or
other action or event, as the case may be, shall take place (or, in the case of
clauses (vi) and (vii) above, the date on which the relevant action or event
- ------------ -----
took place). Such notice shall also specify
6
(or, if not then known, reasonably approximate) the date as of which the holders
of Common Shares of record shall participate in such dividends, distribution or
subscription rights, or shall be entitled to exchange their Common Shares for
securities or other property deliverable upon such Organic Change, Separation
Date, dissolution, liquidation, bankruptcy, assignment for the benefit of
creditors, winding up, or other action or event, as the case may be. Such
written notice shall be given at least twenty (20) days prior to the action in
question and not less than twenty (20) days prior to the record date or the date
on which the Company's transfer books are closed in respect thereto; provided,
--------
that no advance notice need be given of any event or action specified in clause
------
(vi) above, but the Company shall give notice of such event as promptly
- ----
thereafter as practicable; and further provided, that the Company shall give
------- --------
immediate notice of any event or action specified in clause (vii) above.
------------
(g) Certain Events. If any event occurs of the type contemplated by the
--------------
provisions of this Section 7 but not expressly provided for by such provisions
---------
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features), then the Company
shall appoint, at its sole expense, a firm of independent certified public
accountants (which may be the regular auditors of the Company) of recognized
national standing, which shall give their opinion upon the adjustment, if any,
on a basis consistent with the basic intent and principles established in the
other provisions of this Section 7, necessary to preserve, without dilution, the
---------
exercise rights of the registered holder of this Warrant Certificate. Upon
receipt of such opinion, the Company shall forthwith make the adjustments
described therein.
(h) Certain Exceptions to Antidilution Protection. Notwithstanding anything
---------------------------------------------
to the contrary in this Section 7, there shall be no adjustment to the Exercise
---------
Price or to the number of Warrant Shares issuable upon exercise hereof: (i) in
connection with the sale or issuance of the Warrant Certificates for an initial
aggregate of 3,455,610 Common Shares issued to the Lenders (or their Affiliates)
under the Credit Agreement and warrant certificates for an initial aggregate of
584,597 Common Shares issued to the UK Banks under the UK Credit Facilities on
the Original Issuance Date and all warrants issued upon the partial exercise,
transfer or division of, or in substitution for, any such warrants, or any
adjustment to the number of shares issuable pursuant thereto in accordance with
the terms of any thereof; (ii) the issuance of any rights under the Company
Rights Plan; or (iii) an exercise of options outstanding under the Company's
stock plans on the Original Issuance Date, which options are listed on Schedule
--------
3(d) to the Warrant and Registration Rights Agreement.
- ----
(i) Other Securities. If at any time, as a result of an adjustment made
----------------
pursuant to this Section 7, any holder of Warrants shall become entitled to
---------
purchase any securities of the Company other than Common Shares, the number or
amount of such other securities so purchasable and the consideration for such
securities shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions contained in this
Section 7 hereof.
- ---------
(j) Reduction pursuant to Warrant and Registration Rights Agreement.
---------------------------------------------------------------
Notwithstanding anything to the contrary in this Section 7, the number of
---------
Warrant Shares issuable upon exercise of the Warrants is also subject to
immediate reduction pursuant to Section 10 of the Warrant and Registration
Rights Agreement.
7
(k) No Doubling. No single event shall result in an adjustment being
-----------
effected more than once, but a similar subsequent event will result in such
adjustments.
SECTION 8. No Stock Rights. No holder of this Warrant Certificate, as
---------------
such, shall be entitled to vote or be deemed the holder of Common Shares or any
other securities of the Company which may at any time be issuable on the
exercise hereof, nor shall anything contained herein be construed to confer upon
the Holder of this Warrant Certificate, as such, the rights of a stockholder of
the Company or the right to vote for the election of directors or upon any
matter submitted to stockholders at any meeting thereof, or give or withhold
consent to any corporate action or to receive notice of meetings or other
actions affecting stockholders (except as provided herein), or to receive
dividends (except as provided herein) or subscription rights or otherwise, until
the Date of Exercise of the Warrants shall have occurred.
SECTION 9. Fractional Shares. The Company shall not be required to issue
-----------------
fractions of Warrant Shares upon exercise of the Warrants or to distribute
certificates which evidence fractional Warrant Shares. As to any fractional
share of Common Shares which the Holder would otherwise be entitled to subscribe
for from the Company upon such exercise, the Company shall round such fraction
up to the next whole Warrant Share and shall issue such rounded up Warrant Share
and distribute certificates for such rounded up Warrant Share.
SECTION 10. No Registration under Securities Act. Neither the Warrants nor
------------------------------------
the Warrant Shares have been registered under the Securities Act. The Holder of
this Warrant Certificate, by acceptance hereof, represents that it is acquiring
the Warrants to be issued to it for its own account and not with a view to the
distribution thereof, and agrees not to sell, transfer, pledge or hypothecate
any Warrants or any Warrant Shares unless a registration statement is effective
for such Warrants or Warrant Shares under the Securities Act, unless the sale is
permitted by Rule 144 pursuant to the Securities Act or in the opinion of such
holder's counsel (a copy of which opinion shall be delivered to the Company)
such transaction is exempt from the registration requirements of the Securities
Act; provided that Warrants and Warrant Shares issued to such Holder may be
--------
transferred to any Designated Affiliate of such Holder, without any such
registration (to the extent permitted by law) or opinion, subject to the
foregoing restriction on any further sale, transfer, pledge or hypothecation by
such Designated Affiliate.
SECTION 11. Certain Definitions. The following terms have the meanings set
-------------------
forth below:
"Affiliate" of any Person means any other Person directly or indirectly
---------
controlling, controlled by or under direct or indirect common control with such
Person.
"Commencement Date" is defined in the first paragraph hereof.
-----------------
"Common Shares" are defined in the first paragraph hereof.
-------------
"Company" is defined in the first paragraph hereof.
-------
"Company Rights Plan" means the Rights Agreement, dated as of July 17,
-------------------
2000, between the Company and Firstar Bank N.A., as Rights Agent.
"Credit Agreement" means the Amended and Restated Multi-Currency Credit
----------------
Agreement dated as of May 15, 2001, among the Company, certain lenders and Bank
One NA, as
8
syndication agent, Chase Manhattan Bank, as documentation agent, and Bank of
America, National Association, as administrative agent, as amended, supplemented
or otherwise modified from time to time.
"Date of Exercise" is defined in Section 3(c).
---------------- ------------
"Designated Affiliate" has the meaning ascribed to it in the Warrant and
--------------------
Registration Rights Agreement.
"Exercise Period" is defined in the first paragraph hereof.
---------------
"Exercise Price" is defined in the first paragraph hereof.
--------------
"Holder" is defined in the first paragraph hereof.
------
"Market Price" shall mean the average of the daily closing prices per
------------
Common Share for the ten (10) consecutive trading days immediately preceding the
day as of which "Market Price" is being determined (exclusive of "ex-dividend"
------------
and similar dates). The closing price for each day shall be the last sale price
regular way or, in case no such sale takes place on such day, the average of the
closing bid and asked prices regular way, in either case on the principal
national securities exchange on which the shares are listed or admitted to
trading, or if the shares are not so listed or admitted to trading, on the
National Market System of NASDAQ or, if prices for the shares are not quoted on
such National Market System, the average of the highest reported bid and lowest
reported asked prices as furnished by the National Association of Securities
Dealers, Inc. through NASDAQ or through a similar organization if NASDAQ is no
longer reporting such information. If Common Shares are not listed or admitted
to trading on any exchange or quoted through NASDAQ or any similar organization,
the "Market Price" shall be deemed to be the higher of (x) the book value of a
------------
Common Share as determined by any firm of independent certified public
accountants of recognized national standing, selected by the board of directors
of the Company, as at the last day of any month ending within sixty (60) days
preceding the date as of which the determination is to be made and (y) the fair
value thereof determined in good faith by a nationally recognized independent
investment banking firm selected by the Company and acceptable to the holders of
a majority of the Warrants as of a date which is within thirty (30) days of the
date as of which the determination is to be made (the reasonable fees and
expenses of such independent certified public accountants and independent
investment banking firm to be paid by the Company); provided, however, that in
-------- -------
the case of any determination of Market Price pursuant to this sentence, the
Market Price shall not be less than the amount of the consideration per share
received by the Company in respect of the most recent sale, transfer or other
issuance of Common Shares by the Company (othe r than as a result of the
exercise of any option or warrant or the conversion of any stock or securities
convertible into or exchangeable for Common Shares) in an arms' length
transaction to an unaffiliated third party within the 90-day period immediately
preceding the date as to which the determination is to be made.
"Organic Change" is defined in Section 7(d).
-------------- -----------
"Original Issuance Date" means December 13, 2001.
----------------------
9
"Person" means an individual, a corporation, a partnership, an association,
------
a trust or other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof.
"Refinancing Event" is defined in Section 3(f).
----------------- ------------
"UK Banks" means the Royal Bank of Scotland and National Westminster Bank
--------
PLC.
"UK Credit Facilities" means the credit facilities dated as of May 15, 2001
--------------------
among certain of the Company's subsidiaries and the UK Banks, as amended,
supplemented or otherwise modified from time to time.
"Securities Act" means the Securities Act of 1933, as amended.
--------------
"Warrant" is defined in the first paragraph hereof.
-------
"Warrant and Registration Rights Agreement" means the Warrant and
-----------------------------------------
Registration Rights Agreement dated as of May 15, 2001 among the Company and
certain holders of its securities executed pursuant to the Credit Agreement, as
amended, supplemented or otherwise modified from time to time.
"Warrant Share" is defined in the first paragraph hereof.
-------------
SECTION 12. Notices. All notices, requests, demands and other
-------
communications relating to this Warrant Certificate shall be in writing,
including by facsimile, addressed (a) if to the registered owner hereof, to it
at the address furnished by the registered owner to the Company, and (b) if to
the Company, to it at N. 22 West 23685 Ridgeview Parkway West, Waukesha, WI
53188-1013, facsimile no.: (262) 523-7586, Attention: Chief Financial Officer,
with a copy to Quarles & Brady LLP, 411 East Wisconsin Avenue, Milwaukee, WI
53202-4497, facsimile no: (414)271-3552, Attn: Anthony W. Asmuth, or to such
other address as any party shall notify the other party in writing, and shall be
effective, in the case of written notice by mail, five days after placement into
the mails (first class, postage prepaid, mailed within the United States); in
the case of notice by facsimile, on the same day as receipt is confirmed; and in
the case of notice by an internationally recognized mail or courier service on
the next business day after having been sent, unless such service specifies that
it will be providing second business day service, in which case on the second
business day after having been sent.
SECTION 13. Binding Effect. This Warrant Certificate shall be binding upon
--------------
and inure to the sole and exclusive benefit of the Company, its successors and
assigns, the registered Holder or Holders from time to time of the Warrants and
the Warrant Shares.
SECTION 14. Governing Law. This Warrant Certificate shall be construed in
-------------
accordance with and governed by the internal laws of the State of Illinois.
10
IN WITNESS WHEREOF, the Company has caused this Second Tranche Warrant
Certificate to be executed by its officer thereunto duly authorized as of the
date hereof.
APW LTD.
By
------------------------------------
Title:
11
FORM OF ELECTION TO PURCHASE
(To be executed by the holder of Warrants if such holder desires to exercise
Warrants evidenced by the foregoing Warrant Certificate)
To APW Ltd.
The undersigned hereby irrevocably elects to exercise ______________
Warrants evidenced by the foregoing Warrant Certificate for, and to [purchase
thereunder, ___________, Common Shares issuable upon exercise of said Warrants
and delivery of $______ (in cash as provided for in the foregoing Warrant
Certificate) and any applicable taxes payable by the undersigned pursuant to
such Warrant Certificate.][receive, in accordance with Section 3(d) of the
Warrant Certificate, ____ Common Shares issuable upon exercise of said Warrants
and delivery of any applicable taxes payable by the undersigned pursuant to such
Warrant Certificate].
The undersigned requests that certificates for such shares be issued in the
name of
PLEASE INSERT SOCIAL
SECURITY OR TAX
IDENTIFICATION NUMBER
__________________________________
_________________________________
(Please print name and address)
__________________________________
______________________________________________________________________________
If said number of Warrants shall not be all the Warrants evidenced by the
foregoing Warrant Certificate, the undersigned requests that a new Warrant
Certificate evidencing the Warrants not so exercised be issued in the name of
and delivered to
______________________________________________________________________________
(Please print name and address)
______________________________________________________________________________
______________________________________________________________________________
Dated:___________, ______
Name of
holder of Warrant (Print): ____________
(By:) _________________________________
(Title:)
12
FORM OF ASSIGNMENT
FOR VALUE RECEIVED, _______________________ hereby sells, assigns and
transfers to each assignee set forth below all of the rights of the undersigned
in and to the number of Warrants (as defined in and evidenced by the foregoing
Warrant Certificate) set opposite the name of such assignee below and in and to
the foregoing Warrant Certificate with respect to said Warrants and the Common
Shares issuable upon exercise of said Warrants:
Name of Assignee Address Number of Warrants
- ---------------- ------- ------------------
If the total of said Warrants shall not be all the Warrants evidenced by
the foregoing Warrant Certificate, the undersigned requests that a new Warrant
Certificate evidencing the Warrants not so assigned be issued in the name of and
delivered to the undersigned.
Name of holder of Warrant (Print): __________
13