EXHIBIT 4.1
S P E C I M E N
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR UNDER ANY STATE SECURITIES LAWS, IN RELIANCE UPON
EXEMPTIONS FROM REGISTRATION FOR NON-PUBLIC OFFERINGS. THIS SECURITY MAY NOT BE
SOLD OR TRANSFERRED UNLESS IT IS REGISTERED UNDER THE ACT AND UNDER APPLICABLE
STATE SECURITIES LAWS OR UNLESS THE ISSUER RECEIVES AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT AN EXEMPTION FROM REGISTRATION IS AVAILABLE.
ALPNET, INC.
INCORPORATED UNDER THE LAWS OF THE
STATE OF UTAH
$2.55 CONVERTIBLE, VOTING, NON-CUMULATIVE 10%
PREFERRED STOCK, SERIES B, WITHOUT PAR VALUE
TOTAL AUTHORIZED ISSUE: 459,411 SHARES
CERTIFICATE NUMBER *000,000*
*PB000* SHARES OF SERIES B PREFERRED STOCK
THIS IS TO CERTIFY THAT, FOR VALUE RECEIVED, _________________ (the
"HOLDER"), is the registered holder of *000,000* shares of the $2.55
convertible, voting, non-cumulative 10% preferred stock, series B, without par
value (the "SERIES B PREFERRED STOCK") of ALPNET, INC., a Utah corporation (the
"COMPANY"), which stock is fully paid and nonassessable and which stock is
transferable on the books of Company by Xxxxxx in person or by Xxxxxx's attorney
upon surrender of this certificate (the "CERTIFICATE") properly endorsed.
In this Certificate, the term "COMMON STOCK" shall refer to the common
stock, no par value per share, of Company. The Series B Preferred Stock
represented by this Certificate is subject to the following terms and
conditions:
1. DESIGNATION. The shares of Series B Preferred Stock shall have such
designations, powers and preferences and related voting, dividend, conversion
and other rights, qualifications, limitations and restrictions as are set forth
herein.
2. DIVIDEND PREFERENCE. Holder shall be entitled to receive a cash
dividend (the "DIVIDEND") for each share of Series B Preferred Stock at the rate
of ten percent (10%) per annum on the original $2.55 issue amount of such share,
subject to the following terms and conditions:
2.1. Dividends shall be declared and paid, in full or in part, only
when funds for payment of the same are legally available and if, when and as the
board of directors (the "BOARD") of Company, in its sole discretion, shall deem
the same to be advisable. The determination by the Board of the amount
available for payment of Dividends shall be binding and conclusive on the
holders of all stock of Company outstanding at the time.
2.2. Dividends on Series B Preferred Stock shall be non-cumulative,
so that if the full amount of Dividends have not been paid on the Series B
Preferred Stock for any particular fiscal year of Company (the "FISCAL YEAR"),
then Holder shall not be entitled to receive a Dividend payment in later Fiscal
Years to make up for the earlier shortage.
2.3. In any given Fiscal Year, unless and until a full Dividend on
Series B Preferred Stock has been declared and paid for the Fiscal Year, Company
shall not (a) declare or pay any dividends on Common Stock or on shares of any
other series of Company's preferred stock; (b) make any distributions with
respect to Common Stock or shares of any other series of Company's preferred
stock; or (c) redeem, retire or otherwise acquire for a valuable consideration
any Common Stock or shares of any other series of Company's preferred stock.
3. LIQUIDATION PREFERENCE. In the event of any voluntary or involuntary
liquidation, dissolution or winding up of Company, or any reduction in Company's
capital resulting in any distribution of assets to its stockholders, Holder
shall be entitled to receive the amount of $2.55 for each share of Series B
Preferred Stock owned by Holder, plus an amount equal to all declared, but
unpaid dividends, if any, on such shares, before any amount shall be paid to the
holders of Common Stock. Such payment may be in cash or out of the assets of
Company, and may be from Company's capital or earnings, but only to the extent
that the same are legally available. For the purposes of this paragraph, the
following events shall not be deemed to be a liquidation, dissolution or winding
up of Company: (a) a consolidation or merger of Company with or into any other
corporation or corporations; and (b) a disposition by Company of all or
substantially all of its assets. Holder shall not be entitled to receive any
amounts with respect to Series B Preferred Stock upon any liquidation,
dissolution or winding up of Company other than the amounts that are
specifically provided for in this paragraph.
4. VOTING RIGHTS. For each share of Series B Preferred Stock, Holder
shall have the right to that number of votes equal to the number of votes
appurtenant to the number of shares of Common Stock issuable upon conversion of
said share of Series B Preferred Stock into Common Stock. Holders of Series B
Preferred Stock and holders of Common Stock of Company shall vote as a single
class, except as otherwise provided by law or by Company's articles of
incorporation.
5. VOLUNTARY CONVERSION. Holder shall have the right, at its option, to
convert shares of Series B Preferred Stock into fully paid and nonassessable
shares of Common Stock (or to stock of Company to which said Common Stock may be
changed from time to time hereafter) on the following terms and conditions:
5.1. The conversion ratio (the "CONVERSION RATIO") shall be three
shares of Common Stock for each one share of Series B Preferred Stock (rounded
to the nearest whole number of shares); provided, however, that the Conversion
Ratio shall be subject to adjustment from time to time as provided in
subparagraph 5.4.
5.2. No fractional shares or scrip representing fractional shares
shall be issued upon conversion of Series B Preferred Stock into Common Stock.
5.3. Holder may effect a conversion of all or part of the Series B
Preferred Stock into Common Stock at any time or from time to time on or after
the date hereof by presentation and surrender of this Certificate to Company,
together with a written election to exercise such conversion option. If the
conversion option is exercised in part only, then upon surrender of this
Certificate for cancellation, Company shall execute and deliver a new
Certificate for the remaining Series B Preferred Stock in form and substance
otherwise identical to the Certificate. Upon receipt by Company of this
Certificate, in proper form for exercise of the conversion option, Holder shall
be deemed to be the holder of record of the shares of Common Stock issuable upon
such conversion, notwithstanding that the stock transfer books of Company shall
then be closed or that certificates representing such shares of Common Stock
shall not then be actually delivered to Holder.
5.4. The Conversion Ratio shall be subject to adjustment in
accordance with the following terms and conditions:
5.4.1. If at any time, or from time to time, Company shall (a)
subdivide its outstanding shares of Common Stock into a greater number of
shares, (b) pay a dividend in shares of its Common Stock or (c) make a
distribution in shares of its Common Stock, then the number of shares of Common
Stock then deliverable upon conversion of Series B Preferred Stock into Common
Stock shall be proportionately increased, and, conversely, if the outstanding
shares of the Common Stock shall be combined into a smaller number of shares,
then the number of shares of Common Stock then deliverable upon conversion of
Series B Preferred Stock into Common Stock shall be proportionately decreased.
5.4.2. In the case of (a) any classification, reclassification
or other reorganization of the capital stock of Company, (b) the consolidation
or merger of Company with or into another corporation or (c) the conveyance to
another corporation of all or any major portion of the assets of Company
(collectively referred to herein as the "RECONFIGURATION"), then as part of such
Reconfiguration:
5.4.2.1. Adequate provision shall be made
whereby Holder, upon conversion of Series B Preferred Stock as herein provided,
shall be entitled to receive on the same basis and conditions as holders of
Common Stock, the stock, securities or other property which Holder would have
been entitled to receive upon such Reconfiguration, if Holder had converted the
Series B Preferred Stock into Common Stock immediately prior to the
Reconfiguration.
5.4.2.2. Appropriate provision shall be made with
respect to the rights and interests of Holder to the end that the provisions of
this paragraph 5 shall thereafter be applicable, as nearly as may be, in
relation to any shares of stock, securities or other property thereafter
deliverable upon the conversion of Series B Preferred Stock as herein provided.
5.4.2.3. As a condition of any such
Reconfiguration, any corporation which shall become successor to Company by
reason of such Reconfiguration shall expressly assume the obligation to deliver,
upon the conversion of Series B Preferred Stock as herein provided, such shares
of stock, securities or other consideration as Holder shall be entitled to
receive pursuant to the provisions hereof.
The foregoing provisions shall similarly apply to successive Reconfigurations of
or by any such successor.
5.4.3. Notwithstanding anything in this subparagraph 5.4 to the
contrary, Company shall not be required to give effect to any adjustment in the
Conversion Ratio unless and until the net effect of one or more adjustments,
determined as provided above, shall have resulted in a change of the Conversion
Ratio by at least five percent (5%), but when the cumulative net effect of more
than one adjustment so determined shall be to change the Conversion Ratio by at
least five percent (5%), then such change in the Conversion Ratio shall
thereupon be given effect.
5.4.4. Upon any adjustment to the Conversion Ratio, Holder shall
surrender the Certificate to Company, and Company shall issue a new Certificate
to Holder reflecting such adjustments; provided, however, that nothing contained
herein shall modify or restrict such adjustments if the Certificate is not so
surrendered.
5.4.5. Whenever the Conversion Ratio is adjusted as herein
provided, Company shall promptly file with Company's transfer agent for the
Common Stock of Company a statement signed by appropriate officers of Company
setting forth the adjusted Conversion Ratio. The statement shall set forth in
reasonable detail the reason for and the manner of computing such adjustment.
5.4.6. Company shall pay any and all taxes which may be imposed
upon it with respect to the issuance and delivery of Common Stock upon
conversion of Series B Preferred Stock as herein provided. However, in no event
shall Company be required to pay any transfer or other taxes by reason of the
issuance of such Common Stock in names other than those in which the Series B
Preferred Stock surrendered for conversion may stand, and no conversion or
issuance of Common Stock in such case shall be made unless and until the person
requesting such issuance has paid to Company the amount of any such tax, or has
established to the satisfaction of Company and its transfer agent, if any, that
such tax has been paid. Upon any conversion of Series B Preferred Stock, as
herein provided, no adjustment or allowance shall be made for future Dividends
on the Series B Preferred Stock so converted, and all rights to future
Dividends, if any, shall cease and be deemed satisfied; provided, however, that
nothing contained herein shall relieve Company from its obligation to pay any
dividends which shall have been declared and shall be payable to Holder with
respect to the Series B Preferred Stock being converted as of a date prior to
the date of such conversion even though the payment date for such dividend is
subsequent to the date of conversion.
5.4.7. Series B Preferred Stock that is surrendered upon
conversion into Common Stock shall not be reissued, and no Series B Preferred
Stock shall be issued in lieu thereof or in exchange thereof.
5.5. At all times Company shall reserve for issuance and/or
delivery upon conversion of Series B Preferred Stock into Common Stock such
number of authorized but unissued shares of Common Stock as shall be required
for issuance or delivery upon such conversion.
5.6. All shares of Common Stock which may be issued upon conversion
of the shares of Series B Preferred Stock evidenced hereby will upon issuance by
Company be duly and validly issued, fully paid and nonassessable and free from
all taxes, liens and charges with respect to the issuance thereof, and Company
shall take no action which shall cause a contrary result.
6. EXCHANGE, ASSIGNMENT OR LOSS OF CERTIFICATE. This Certificate is
exchangeable, without expense, at the option of Holder, upon presentation and
surrender hereof to Company for other certificates of different denominations.
This Certificate may only be transferred, assigned or hypothecated subject to
the provisions of paragraph 8. Any such assignment shall be made by surrender
of this Certificate to Company with such documentation as Company shall require
and funds sufficient to pay any transfer tax; whereupon Company shall, without
charge, execute and deliver a new Certificate in the name of the assignee named
in such instrument of assignment, and this Certificate shall promptly be
cancelled. This Certificate may be divided or combined with other certificates
which carry the same rights upon presentation hereof at the office of Company,
together with a written notice signed by Holder specifying the names and
denominations in which new certificates are to be issued. The term
"CERTIFICATE" as used herein includes any Certificates issued in substitution
for or replacement of this Certificate, or into which this Certificate may be
divided or exchanged. Upon receipt by Company of evidence satisfactory to it
of the loss, theft, destruction or mutilation of this Certificate, and in the
case of loss, theft or destruction, of an indemnification reasonably
satisfactory to Company, and in the case of mutilation, upon surrender and
cancellation of this Certificate, Company will execute and deliver a new
Certificate of like tenor. Any such new Certificate executed and delivered
shall be the legal valid and binding obligation of Company, whether or not this
Certificate so lost, stolen, destroyed, or mutilated shall be at any time
enforceable by anyone.
7. EXCLUSION OF ADDITIONAL RIGHTS. The shares of Series B Preferred
Stock shall have no preemptive or subscription rights.
8. TRANSFER TO COMPLY WITH THE SECURITIES ACT OF 1933.
8.1. Neither the Series B Preferred Stock nor the Common Stock or
any other security issued or issuable upon an exercise of the conversion option
hereunder may be sold, transferred or otherwise disposed of except to a person
who, in the reasonable opinion of counsel for Company, is a person to whom the
Series B Preferred Stock or the Common Stock may legally be transferred
(pursuant to paragraph 6 or otherwise) without registration and without the
delivery of a current prospectus under the Act with respect thereto and then
only against receipt of an agreement of such person to comply with the
provisions of this paragraph with respect to any resale or other disposition of
such securities.
8.2. Company may, if it so elects, cause the following legend (or
one similar to it) to be set forth on each certificate representing the Common
Stock or any other security issued or issuable upon an exercise of the
conversion option hereunder, which security has not theretofore been registered
for distribution to the public unless counsel for Company is of the reasonable
opinion as to any such certificate that such legend is unnecessary:
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT"), OR UNDER ANY STATE SECURITIES LAWS, IN RELIANCE
UPON EXEMPTIONS FROM REGISTRATION FOR NON-PUBLIC OFFERINGS. THIS
SECURITY MAY NOT BE SOLD OR TRANSFERRED UNLESS IT IS REGISTERED UNDER THE
ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR UNLESS THE ISSUER
RECEIVES AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT AN
EXEMPTION FROM REGISTRATION IS AVAILABLE.
9. REGISTRATION.
9.1. Company agrees to register with the United States Securities
and Exchange Commission (the "S.E.C.") and to qualify under any applicable Blue
Sky or other state securities laws, from time to time, the offer and sale by
Holder of the Common Stock issued, from time to time, as a result of the
conversion of shares of Series B Preferred Stock into Common Stock. Said
registration and qualification shall be accomplished within 90 days after
Company files its next annual Form 10-K report with the S.E.C. following the
exercise of Xxxxxx's conversion option hereunder; provided, however, Company
shall not be obligated to register and/or qualify on behalf of Holder fewer than
an aggregate of 200,000 such shares in any one registration and/or
qualification.
9.2. All expenses incurred in connection with any registration or
qualification pursuant to this paragraph 9, including, without limitation, all
registration, filing, and qualification fees, printing expenses, fees and
disbursements of counsel for Company, and expenses of any special audits
incidental to or required by such registration, shall be borne by Company.
9.3. In the case of each registration and qualification effected by
Company pursuant to this paragraph 9, Company will keep Holder advised in
writing as to the initiation of each such registration and qualification and as
to the completion thereof. At its expense Company will:
9.3.1. Keep such registration and qualification effective for a
period of 120 days or until the distribution described in the registration
statement relating thereto has been completed, whichever first occurs; and
9.3.2. Furnish such number of prospectuses and other documents
incident thereto as Xxxxxx from time to time may reasonably request.
9.4. Company and Holder shall be entitled to the following rights
of indemnification in connection with this Certificate:
9.4.1. Company will indemnify Holder with respect to any
registration and qualification effected pursuant to this paragraph 9 against all
claims, losses, damages, and liabilities (or actions in respect thereof) arising
out of or based on any untrue statement (or alleged untrue statement) of a
material fact contained in any prospectus, offering circular or other document
(including any related registration statement, notification or the like)
incident to any such registration or qualification, or based on any omission (or
alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, or any violation by
Company of any rule or regulation promulgated under the Act or any state
securities law applicable to Company and relating to action or inaction required
of Company in connection with any such registration or qualification, and will
reimburse Holder for any legal and any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability or action, provided that Company will not be liable in any such case
to the extent that any such claim, loss, damage or liability arises out of or
is based on any untrue statement or omission based upon written information
furnished to Company in an instrument duly executed by Xxxxxx specifically for
use therein.
9.4.2. Holder will indemnify Company, each of its directors and
officers who sign such registration statement, and each person who controls
Company within the meaning of the Act, with respect to any registration and
qualification effected pursuant to this paragraph 9, against all claims, losses,
damages, and liabilities (or actions in respect thereof) arising out of or based
on any untrue statement of a material fact contained in any registration
statement, prospectus, offering circular or other document incident to any such
registration or qualification or any omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and will reimburse Company, and such other directors, officers or
other persons for any legal or any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability, or action, in each case to the extent, but only to the extent, that
such untrue statement or omission is made in such registration statement,
prospectus, offering circular, or other document in reliance upon and in
conformity with written information furnished to Company in an instrument duly
executed by Xxxxxx specifically for use therein.
9.4.3. Each party entitled to indemnification under this
paragraph 9 (the "INDEMNIFIED PARTY") shall give notice to the party required to
provide indemnification (the "INDEMNIFYING PARTY") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation,
shall be approved by the Indemnified Party (whose approval shall not be
unreasonably withheld), and the Indemnified Party may participate in such
defense at such party's expense, and provided further that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this paragraph. No Indemnifying
Party, in the defense of any such claim or litigation, shall, except with the
consent of each Indemnified Party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Party of a release from
all liability in respect to such claim or litigation.
9.5. Holder shall furnish to Company such written information
relating to him or it and the distribution proposed by him or it as Company may
request in writing and as shall be required in connection with any registration
or qualification referred to in this paragraph 9.
10. NO REDEMPTION PROVISIONS. The shares of Series B Preferred Stock
are not subject in any way to voluntary or involuntary redemption by Company.
11. PROTECTIVE PROVISIONS. The unanimous consent of each holder of
Series B Preferred Stock shall be required for any action which (a) alters or
changes the rights, preferences, privileges, designations, powers,
qualifications, limitations or restrictions of the Series B Preferred Stock
adversely; (b) increases the authorized number of shares of Series B Preferred
Stock; or (c) creates any new class or series of shares having preference over
or being on a parity with the Series B Preferred Stock.
12. APPLICABLE LAW. This Certificate shall be governed by, and
construed in accordance with, the laws of the State of Utah.
DATED effective 31 July 1991.
ALPNET, INC.
ATTEST: A UTAH CORPORATION
By:_____________________________
XXX X. XXXXXXX XXXXXX X. XXXX
Secretary President
ELECTION OF CONVERSION OPTION
The undersigned irrevocably elects to convert _____________ shares (all
shares shall be presumed if the foregoing blank is not completed) of the Series
B Preferred Stock represented by this Certificate into Common Stock and requests
that the certificate for such shares be issued in the name of
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
______________________________________________________________ at
______________________________________________________________ and to be
delivered to: _________________________________________ at
______________________________________________________________
and, if the number of shares of Series B Preferred Stock that are converted
shall not be all of the shares of Series B Preferred Stock evidenced by this
Certificate, that a new certificate for the balance of shares of the Series B
Preferred Stock be registered in the name of, and delivered to,
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
______________________________________________________________ at
_______________________________________________________________ .
DATED: ______________ 19_____ ______________________________
Signature
_________________________________________________________________
ASSIGNMENT
For value received, ________________________________________ does hereby
sell, assign and transfer unto ______________________
_________________________________________________________________
_____________________ shares of the Series B Preferred Stock represented by this
Certificate, together with all right, title and interest therein, and does
hereby irrevocably constitute and appoint
_________________________________________________________
as attorney to transfer said shares on the books of Company, with full power of
substitution.
DATED: 19
Signature
Signature Guaranteed:
______________________________
_________________________________________________________________
SEE NOTES ON FOLLOWING PAGE
_________________________________________________________________
NOTES:
1. SIGNATURES FOR THE ELECTION OF CONVERSION AND ASSIGNMENT ABOVE MUST BE
GUARANTEED BY A COMMERCIAL BANK, A TRUST COMPANY OR A MEMBER FIRM OF A
NATIONAL STOCK EXCHANGE.
2. ALL CAPITALIZED TERMS USED IN THE FOREGOING ELECTION OF CONVERSION OPTION
AND ASSIGNMENT SHALL HAVE THE MEANINGS FOR SUCH TERMS THAT ARE SET FORTH
IN THE SERIES B PREFERRED STOCK CERTIFICATE TO WHICH THE ELECTION AND
ASSIGNMENT PAGE IS ATTACHED.
3. THE SIGNATURE ON ANY ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN
UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR WITHOUT ALTERATION
OR MODIFICATION.
