Contract
Exhibit 4.9
THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE
SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION
STATEMENTS RELATED THERETO, (ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY
TO THE COMPANY, THAT SUCH REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF NO-ACTION LETTERS FROM
THE APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING WITH THE PROVISIONS OF
SECTION 7 OF THIS WARRANT.
COMSCORE NETWORKS, INC.
WARRANT TO PURCHASE 36,127 SHARES
OF SERIES D PREFERRED STOCK
OF SERIES D PREFERRED STOCK
THIS CERTIFIES THAT, for value received, SILICON VALLEY BANK and its assignees are entitled to
subscribe for and purchase 36,127 shares of the fully paid and nonassessable Series D Preferred
Stock (as adjusted pursuant to Section 4 hereof, the “Shares”) of COMSCORE NETWORKS, INC., a
Delaware corporation (the “Company”), at the price $0.8996 per share (such price and such other
price as shall result, from time to time, from the adjustments specified in Section 4 hereof is
herein referred to as the “Warrant Price”), subject to the provisions and upon the terms and
conditions hereinafter set forth. As used herein, (a) the term “Series Preferred” shall mean the
Company’s presently authorized Series D Preferred Stock, and any stock into or for which such
Series D Preferred Stock may hereafter be converted or exchanged, and after the automatic
conversion of the Series D Preferred Stock to Common Stock shall mean the Company’s Common Stock,
(b) the term “Date of Grant” shall mean July 31, 2002, and (c) the term “Other Warrants” shall mean
any other warrants issued by the Company in connection with the transaction with respect to which
this Warrant was issued, and any warrant issued upon transfer or partial exercise of or in lieu of
this Warrant. The term “Warrant” as used herein shall be deemed to include Other Warrants unless
the context clearly requires otherwise.
1. Term. The purchase right represented by this Warrant is exercisable, in whole or
in part, at any time and from time to time from the Date of Grant through the later of (i) ten (10)
years after the Date of Grant or (ii) five (5) years after the closing of the Company’s Initial
public offering of its Common Stock (“IPO”) effected pursuant to a Registration Statement on Form
S-l (or its successor) filed under the Securities Act of 1933, as amended (the “Act”).
2. Method of Exercise: Payment: Issuance of New Warrant. Subject to Section 1 hereof,
the purchase right represented by this Warrant may be exercised by the holder hereof, in whole or
in part and from time to time, at the election of the holder hereof, by (a) the surrender of this
Warrant (with the notice of exercise substantially in the form attached hereto as Exhibit A-l duly
completed and executed) at the principal office of the Company and by the payment to the Company,
by certified or bank check, or by wire transfer to an account designated by the Company (a ''Wire
Transfer”) of an amount equal to the then applicable Warrant Price multiplied by the number of
Shares then being purchased; or (b) exercise of the “net issuance” right provided for in Section
10.2
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hereof. The person or persons in whose name(s) any certificate(s) representing shares of Series
Preferred shall be issuable upon exercise of this Warrant shall be deemed to have become the
holder(s) of record of, and shall be treated for all purposes as the record holder(s) of, the
shares represented thereby (and such shares shall be deemed to have been issued) immediately prior
to the close of business on the date or dates upon which this Warrant is exercised. In the event
of any exercise of the rights represented by this Warrant, certificates for the shares of stock so
purchased shall be delivered to the holder hereof as soon as possible and in any event within
thirty (30) days after such exercise and, unless this Warrant has been fully exercised or expired,
a new Warrant representing the portion of the Shares, if any with respect to which this Warrant
shall not have been exercised shall also be issued to the holder hereof as soon as possible and in
any event within such thirty-day period; provided, however, at such time as the Company is subject
to the reporting requirements of the Securities Exchange Act of 1934, as amended, if requested by
the holder of this Warrant, the Company shall use its best efforts to cause its transfer agent to
deliver the certificate representing Shares issued upon exercise of this Warrant to a broker or
other person (as directed by the holder exercising this Warrant) within the time period required to
settle any trade made by the holder after exercise of this Warrant.
3. Stock Fully Paid; Reservation of Shares. All Shares that may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance pursuant to the terms and
conditions herein, be fully paid and nonassessable, and free from all preemptive rights and taxes,
liens and charges with respect to the issue thereof. During the period within which the rights
represented by this Warrant may be exercised, the Company will at all times have authorized, and
reserved for the purpose of the issue upon exercise of the purchase rights evidenced by this
Warrant, a sufficient number of shares of its Series Preferred to provide for the exercise of the
rights represented by this Warrant and a sufficient number of shares of its Common Stock to provide
for the conversion of the Series Preferred into Common Stock.
4. Adjustment of Warrant Price and Number of Shares. The number and kind of
securities purchasable upon the exercise of this Warrant and the Warrant Price shall be subject to
adjustment from time to time upon the occurrence of certain events, as follows:
(a) Reclassification or Merger. In case of any reclassification or change of
securities of the class issuable upon exercise of this Warrant (other than a change in par value,
or from par value to no par value, or from no par value to par value, or as a result of a
subdivision or combination), or in case of any merger of the Company with or into another
corporation (other than a merger with another corporation in which the Company is the acquiring and
the surviving corporation and which does not result in any reclassification or change of
outstanding securities issuable upon exercise of this Warrant), or in case of any sale of all or
substantially all of the assets of the Company, the Company, or such successor or purchasing
corporation, as the case may be, shall duly execute and deliver to the holder of this Warrant a new
Warrant (in form and substance satisfactory to the holder of this Warrant), or the Company shall
make appropriate provision without the issuance of a new Warrant, so that the holder of this
Warrant shall have the right to receive upon exercise of this Warrant, at a total purchase price
not to exceed that payable upon the exercise of the unexercised portion of this Warrant, and in
lieu of the shares of Series Preferred theretofore issuable upon exercise of this Warrant, the kind
and amount of shares of stock, other securities, money and
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property receivable upon such classification, change, merger or sale by a holder of the number of
shares of Series Preferred then purchasable under this Warrant. Any new Warrant shall provide for
adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section 4. The provisions of this Section 4(a) shall similarly apply to successive
reclassifications, changes, mergers and sales.
(b) Subdivision or Combination of Shares. If the Company at any time while this
Warrant remains outstanding and unexpired shall subdivide or combine its outstanding shares of
Series Preferred, the Warrant Price shall be proportionately decreased and the number of Shares
issuable hereunder shall be proportionately increased in the case of a subdivision and the Warrant
Price shall be proportionately increased and the number of Shares issuable hereunder shall be
proportionately decreased in the case of a combination.
(c) Stock Dividends and Other Distributions. If the Company at any time while this
Warrant is outstanding and unexpired shall (i) pay a dividend with respect to Series Preferred
payable in Series Preferred, then the Warrant Price shall be adjusted, from and after the date of
determination of shareholders entitled to receive such dividend or distribution, to that price
determined by multiplying the Warrant Price in effect immediately prior to such date of
determination by a fraction (A) the numerator of which shall be the total number of shares of
Series Preferred outstanding immediately prior to such dividend or distribution, and (B) the
denominator of which shall be the total number of shares of Series Preferred outstanding
immediately after such dividend or distribution; or (ii) make any other distribution with respect
to Series Preferred (except any distribution specifically provided for in Sections 4(a) and 4(b)),
then, in each such case, provision shall be made by the Company such that the holder of this
Warrant shall receive upon exercise of this Warrant a proportionate share of any such dividend or
distribution as though it were the holder of the Series Preferred (or Common Stock issuable upon
conversion thereof) as of the record date fixed for the determination of the shareholders of the
Company entitled to receive such dividend or distribution.
(d) Adjustment of Number of Shares. Upon each adjustment in the Warrant Price, the
number of Shares of Series Preferred purchasable hereunder shall be adjusted, to the nearest whole
share, to the product obtained by multiplying the number of Shares purchasable immediately prior to
such adjustment in the Warrant Price by a fraction, the numerator of which shall be the Warrant
Price immediately prior to such adjustment and the denominator of which shall be the Warrant Price
immediately thereafter.
(e)
Antidilution Rights. The other antidulation rights applicable to the Shares of
Series Preferred purchasable hereunder are set forth in the Company’s Certificate of Incorporation,
as amended through the Date of Grant, a true and complete copy of which is attached hereto as
Exhibit B (the “Charter”). Such antidilution rights shall not be restated, amended, modified or
waived in any manner that is adverse to the holder hereof without such holder’s prior written
consent, unless such amendment, modification or waiver affects such holder in the same manner as it
affects other holders of only the Series Preferred. The Company shall promptly provide the holder
hereof with any restatement, amendment, modification or waiver of the Charter promptly after the
same has been made.
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5. Notice of Adjustments. Whenever the Warrant Price or the number of Shares
purchasable hereunder shall be adjusted pursuant to Section 4 hereof, the Company shall make a
certificate signed by its chief financial officer setting forth, in reasonable detail, the event
requiring the adjustment, the amount of the adjustment, the method by which such adjustment was
calculated, and the Warrant Price and the number of Shares purchasable hereunder after giving
effect to such adjustment, and shall cause copies of such certificate to be mailed (without regard
to Section 13 hereof, by first class mail, postage prepaid) to this holder of this Warrant. In
addition, whenever the conversion price or conversion ratio of “the Series Preferred shall be
adjusted, the Company shall make a certificate signed by its chief financial officer setting forth,
in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method
by which such adjustment was calculated, and the conversion price or ratio of the Series Preferred
after giving effect to such adjustment, and shall cause copies of such certificate to be mailed
(without regard to Section 13 hereof, by first class mail, postage prepaid) to the holder of this
Warrant.
6. Fractional Shares. No fractional shares of Series Preferred will be issued in
connection, with any exercise hereunder, but in lieu of such fractional shares the Company shall
make a cash payment therefor based on the fair market value of the Series Preferred on the date of
exercise as reasonably determined in good faith by the Company’s Board of Directors.
7. Compliance with Act; Disposition of Warrant or Shares of Series Preferred.
(a) Compliance with Act. The holder of this Warrant by acceptance hereof, agrees that
this Warrant, and the shares of Series Preferred to be issued upon exercise hereof and any Common
Stock issued upon conversion thereof are being acquired for investment and that such holder will
not offer, sell or otherwise dispose of this Warrant, or any shares of Series Preferred to be
issued upon exercise hereof or any Common Stock issued upon conversion thereof except under
circumstances which will not result in a violation of the Act or any applicable state securities
laws. Upon exercise of this Warrant, unless the Shares being acquired are registered under the Act
and any applicable stats securities laws or an exemption from such registration is available, the
holder hereof shall confirm in writing that the shares of Series Preferred so purchased (and any
shares of Common Stock issued upon conversion thereof) are being acquired for investment and not
with a view toward distribution or resale in violation of the Act and shall confirm such other
matters related thereto as may be reasonably requested by the Company. This Warrant and all shares
of Series Preferred issued upon exercise of this Warrant and all shares of Common Stock issued upon
conversion thereof (unless registered under the Act and any applicable state securities laws) shall
be stamped or imprinted with a legend in substantially the following form:
“THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT (i)
EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO, (ii) AN OPINION OF COUNSEL OR OTHER EVIDENCE
REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF
NO-ACTION LETTERS FROM THE APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING
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WITH THE PROVISIONS OF SECTION 7 OF THE WARRANT UNDER WHICH THESE SECURITIES WERE ISSUED, DIRECTLY
OR INDIRECTLY.”
Said legend shall be removed by the Company, upon the request of a holder, at such time as the
restrictions on the transfer of the applicable security shall have terminated. In addition, in
connection with this issuance of this Warrant, the holder specifically represents to the Company by
acceptance of this Warrant as follows:
(1) The holder is aware of this Company’s business affairs and financial condition, and has
acquired information about the Company sufficient to reach an informed and knowledgeable decision
to acquire this Warrant. The holder is acquiring this Warrant for its own account for investment
purposes only and not with a view to, or for the resale in connection with, any “distribution”
thereof in violation of the Act.
(2) The holder understands that this Warrant has not been registered under the Act in reliance
upon a specific exemption therefrom, which exemption depends upon, among other things, the bona
fide nature of the holder’s investment intent as expressed herein.
(3) The holder further understands that this Warrant must be held indefinitely unless
subsequently registered under the Act and qualified under any applicable state securities laws, or
unless exemptions from registration and qualification are otherwise available. The holder is aware
of the provisions of Rule 144 promulgated under the Act.
(4) The holder is an “accredited investor” as such term is defined in Rule 501 of Regulation D
promulgated under the Act.
(b) Disposition of Warrant or Shares. With respect to any offer, sale or other
disposition of this Warrant or any shares of Series Preferred acquired pursuant to the exercise of
this Warrant prior to registration of such Warrant or shares, the holder hereof agrees to give
written notice to the Company prior thereto, describing briefly the manner thereof, together with a
written opinion of such holder’s counsel, or other evidence, if reasonably satisfactory to the
Company, to the effect that such offer, sale or other disposition may be effected without
registration or qualification (under the Act as then in effect or any federal or state securities
law then in effect) of this Warrant or such shares of Series Preferred or Common Stock and
indicating whether or not under the Act certificates for this Warrant or such shares of Series
Preferred to be sold or otherwise disposed of require any restrictive legend as to applicable
restrictions on transferability in order to ensure compliance with such law. Upon receiving such
written notice and reasonably satisfactory opinion or other evidence, the Company, as promptly as
practicable but no later than fifteen (15) days after receipt of the written notice, shall notify
such holder that such holder may sell or otherwise dispose of this Warrant or such shares of Series
Preferred or Common Stock, all in accordance with the terms of the notice delivered to the Company.
If a determination has been made pursuant to this Section 7(b) that the opinion of counsel for the
holder or other evidence is not reasonably satisfactory to the Company, the Company shall so notify
the holder promptly with details thereof after such determination has been made. Notwithstanding
the foregoing, this Warrant or such shares of Series Preferred or Common Stock may, as to such
federal laws, be offered, sold or otherwise disposed of
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in accordance with Rule 144 or 144A under the Act, provided that the Company shall have been
furnished with such information as the Company may reasonably request to provide a reasonable
assurance that the provisions of Rule 144 or 144A have been satisfied. Each certificate
representing this Warrant or the shares of Series Preferred thus transferred (except a transfer
pursuant to Rule 144 or 144A) shall bear a legend as to the applicable restrictions on
transferability in order to ensure compliance with such laws, unless in the aforesaid opinion of
counsel for the holder, such legend is not required in order to ensure compliance with such laws.
The Company may issue stop transfer instructions to its transfer agent in connection with such
restrictions.
(c) Applicability of Restrictions. Neither any restrictions of any legend described
in this Warrant nor the requirements of Section 7(b) above shall apply to any transfer of, or grant
of a security interest in, this Warrant (or the Series Preferred or Common Stock obtainable upon
exercise thereof) or any part hereof (i) to a partner of the holder if the holder is a partnership
or to a member of the holder if the holder is a limited liability company, or (ii) to Silicon
Valley Bancshares (holder’s parent company) or any affiliate of the holder if the holder is a
corporation or a bank; provided, however, in any such transfer, (x) the transferee
shall on the Company’s request agree in writing to be bound by the terms of this Warrant as if an
original holder hereof, and (z) other than the transfer to Silicon Valley Bancshares the transferor
shall give the Company prior written notice thereof in reasonable detail, including the name of the
transferee and the extent of the rights and/or number of shares to be transferred. Subject to the
provisions of this Section 7(c), upon receipt by holder of the executed Warrant, holder will
transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the
securities issuable, directly or indirectly, upon conversion of the Shares, if any) to Silicon
Valley Bancshares, holder’s parent company. Subject to the provisions of this Section 7(c) and
upon providing Company with written notice, holder or Silicon Valley Bancshares may transfer all or
part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities
issuable, directly or indirectly, upon conversion of the Shares, if any) to The Silicon Valley Bank
Foundation.
8. Rights as Shareholders; Information. No holder of this Warrant, as such, shall be
entitled to vote or receive dividends or be deemed the holder of Series Preferred or any other
securities of the Company which may at any time be issuable upon the exercise hereof for any
purpose, nor shall anything contained herein be construed to confer upon the holder of this
Warrant, as such, any of the rights of a shareholder of the Company or any right to vote for the
election of directors or upon any matter submitted to shareholders at any meeting thereof, or to
receive notice of meetings, or to receive dividends or subscription rights or otherwise until this
Warrant shall have been exercised and the Shares purchasable upon the exercise hereof shall have
become deliverable, as provided herein. Notwithstanding the foregoing, the Company will transmit
to the holder of this Warrant such information, documents and reports as are generally distributed
to the holders of any class or series of the securities of the Company concurrently with the
distribution to the shareholders.
9. Registration Rights. The Company grants registration rights to the holder of this
Warrant for any Common Stock of the Company obtained upon conversion of the Series Preferred,
comparable to the registration rights granted to the investors in that certain Second Amended and
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Restated Investor Rights Agreement dated as of August 8, 2001, (the “Registration Rights
Agreement”), with the following exceptions and clarifications:
(1) The holder will have not have the right to demand registration, but can otherwise
participate in any registration demanded by others other holders of at least a majority of the
Registrable Securities (as defined in the Rights Agreement).
(2) The holder will be subject to the same provisions regarding indemnification as contained
in the Registration Rights Agreement.
(3) The registration rights are freely assignable by the holder offers Warrant in connection
with a permitted transfer of this Warrant or the Shares.
10. Additional Rights.
10.1 Acquisition Transactions. The Company shall provide the holder of this Warrant
with at least twenty (20) days’ written notice prior to closing thereof of the terms and conditions
of any of the following transactions (to the extent the Company has notice thereof): (i) the sale,
lease, exchange, conveyance or other disposition of all or substantially all of the Company’s
property or business, or (ii) its merger into or consolidation with any other corporation (other
than a wholly-owned subsidiary of the Company), or any transaction (including a merger or other
reorganization) or series of related transactions, in which more than 50% of the voting power of
the Company is disposed of.
10.2 Right to Convert Warrant into Stock: Net Issuance.
(a) Right to Convert. In addition to and without limiting the rights of the holder
under the terms of this Warrant, the holder shall have the right to convert this Warrant or any
portion thereof (the “Conversion Right”) into shares of Series Preferred as provided in this
Section 10.2 at any time or from time to time during the term of this Warrant. Upon exercise of
the Conversion Right with respect to a particular number of shares subject to this Warrant (the
“Convened Warrant Shares"'), the Company shall deliver to the holder (without payment by the holder
of any exercise price or any cash or other consideration) that number of shares of fully paid and
nonassessable Series Preferred as is determined according to the following formula:
X
|
= | B — A
|
Where:
|
X | = | the number of shares of Series Preferred that shall be issued to holder | |||||
| Y | = | the fair market value of one share of Series Preferred | ||||||
| A | = | the aggregate Warrant Price of the specified number of Converted Warrant Shares immediately prior to the exercise of the Conversion Right (i.e., the number of Converted Warrant Shares multiplied by the Warrant Price) |
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| B | = | the aggregate fair market value of the specified number of Converted Warrant Shares (i.e., the number of Converted Warrant Shares multiplied by the fair market value of one Convened Warrant Share) |
No fractional shares shall be issuable upon exercise of the Conversion Right, and, if the
number of shares to be issued determined in accordance with the foregoing formula is other than a
whole number, the Company shall pay to the holder an amount in cash equal to the fair market value
of the resulting fractional share on the Conversion Date (as hereinafter defined). For purposes of
Section 10 of this Warrant, shares issued pursuant to the Conversion Right shall be treated as if
they were issued upon the exercise of this Warrant.
(b) Method of Exercise. The Conversion Right may be exercised by the holder by the
surrender of this Warrant at the principal office of the Company together with a written statement
(which may be in the form of Exhibit A-l or Exhibit A-2 hereto) specifying that the holder thereby
intends to exercise the Conversion Right and indicating the number of shares subject to this
Warrant which are being surrendered (referred to in Section 10.2(a) hereof as the Converted Warrant
Shares) in exercise of the Conversion Right. Such conversion shall be effective upon receipt by
the Company of this Warrant together with the aforesaid written statement, or on such later date as
is specified therein (the “Conversion Date”), and, at the election of the holder hereof, may be
made contingent upon the closing of the sale of the Company’s Common Stock to the public in a
public offering pursuant to a Registration Statement under the Act (a “Public Offering”).
Certificates for the shares issuable upon exercise of the Conversion Right and, if applicable, a
new warrant evidencing the balance of the shares remaining subject to this Warrant, shall be issued
as of the Conversion Date and shall be delivered to the holder within thirty (30) days following
the Conversion Date.
(c) Determination of Fair Market Value. For purposes of this Section 10.2, “fair
market value” of a share of Series Preferred (or Common Stock if the Series Preferred has been
automatically converted into Common Stock) as of a particular date (the “Determination Date”) shall
mean:
(i) If the Conversion Right is exercised in connection with and contingent upon a Public
Offering, and if the Company’s Registration Statement relating to such Public Offering
(“Registration Statement”) has been declared effective by the Securities and Exchange Commission,
then the initial “Price to Public” specified in the final prospectus with respect to such offering.
(ii) If the Conversion Right is not exercised in connection with and contingent upon a Public
Offering, then as follows:
(A) If traded on securities exchange, the fair market value of the Common Stock shall be
deemed to be the average of the closing prices of the Common Stock on such exchange over the five
trading days immediately prior to the Determination Date, and the fair market value of the Series
Preferred shall be deemed to be such fair market value of the Common Stock multiplied by the number
of shares of Common Stock into which each share of Series Preferred is then convertible;
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(B) If traded on the Nasdaq Stock Market or other over-the-counter system, the fair market
value of the Common Stock shall be deemed to be the average of the closing bid prices
of the Common Stock over the five trading days immediately prior to the Determination Date,
and the fair market value of the Series Preferred shall be deemed to be such fair market value of
the Common Stock multiplied by the number of shares of Common Stock into which each share of Series
Preferred is then convertible; and
(C) If there is no public market for the Common Stock, then fair marker value shall be
determined in good faith by the board of directors of the Company.
In making a determination under clauses (A) or (B) above, if on the Determination Date, five
trading days had not passed since the IPO, then the fair market value of the Common Stock shall be
the average closing prices or closing bid prices, as applicable, for the shorter period beginning
on and including the date of the IPO and ending on the trading day prior to the Determination Date
(or if such period includes only one trading day the closing price or closing bid price, as
applicable, for such trading day). If closing prices or closing bid prices are no longer reported
by a securities exchange or other trading system, the closing price or closing bid price shall be
that which is reported by such securities exchange or other trading system at 4:00 p.m. New York
City time on the applicable trading day.
10.3 Exercise Prior to Expiration. To the extent this Warrant is not previously
exercised as to all of the Shares subject hereto, and if the fair market value of one share of the
Series Preferred is greater than the Warrant Price then in effect, this Warrant shall be deemed
automatically exercised pursuant to Section 10.2 above (even if not surrendered) immediately before
its expiration. For purposes of such automatic exercise, the fair market value of one share of the
Series Preferred upon such expiration shall be determined pursuant to Section 10.2(c). To the
extent this Warrant or any portion thereof is deemed automatically exercised pursuant to this
Section 10.3, the Company agrees to promptly notify the holder hereof of the number of Shares, if
any, the holder hereof is to receive by reason of such automatic exercise.
11. Representations and Warranties. The Company represents and warrants to the holder
of this Warrant as follows:
(a) This Warrant has been duly authorized and executed by the Company and is a valid and
binding obligation of the Company enforceable in accordance with its terms, subject to laws of
general application relating to bankruptcy, insolvency and the relief of debtors and the rules of
law or principles at equity governing specific performance, injunctive relief and other equitable
remedies.
(b) The Shares have been duly authorized and reserved for issuance by the Company and, when
issued in accordance with the terms hereof, will be validly issued, fully paid and nonassessable
and free from preemptive rights.
(c) The rights, preferences, privileges and restrictions granted to or imposed upon the Series
Preferred and the holders thereof are as set forth in the Charter, and on the Date of Grant,
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each share of the Series Preferred represented by this Warrant is convertible into one share of
Common Stock.
(d) The shares of Common Stock issuable upon conversion of the Shares have been duly
authorized and reserved for issuance by the Company and, when issued in accordance with the terms
of the Charter will be validly issued, fully paid and nonassessable.
(e) The execution and delivery of this Warrant are not, and the issuance of the Shares upon
exercise of this Warrant in accordance with the terms hereof will not be inconsistent with the
Company’s Charter or by-laws, do not and will not contravene any law, governmental rule or
regulation, judgment or order applicable to the Company, and do not and will not conflict with or
contravene any provision of, or constitute a default under, any indenture, mortgage, contact or
other instrument of which the Company is a party or by which it is bound or require the consent or
approval of, the giving of notice to, the registration or filing with or the taking of any action
in respect of or by, any Federal, state or local government authority or agency or other person,
except for the filing of notices pursuant to federal and state securities laws, which filings will
be effected by the time required thereby.
(f) There are no actions, suits, audits, investigations or proceedings pending or, to the
knowledge of the Company, threatened against the Company in any court or before any governmental
commission, board or authority which, if adversely determined, could have a material adverse effect
on the ability of the Company to perform its obligations under this Warrant.
(g) The number of shares of Common Stock of the Company outstanding on the date hereof, on a
fully dilated basis (assuming the conversion of all outstanding convertible securities and the
exercise of all outstanding options and warrants), does not exceed 48,000,000 shares.
12. Modification and Waiver. This Warrant and any provision hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the party against which
enforcement of the same is sought.
13. Market Stand-off. The holder of this Warrant agrees to be bound by the “Market
Stand-Off provision in Section 1(l) of the Rights Agreement.
14. Notices. Any notice, request, communication or other document required or
permitted to be given or delivered to the holder hereof or the Company shall be delivered, or shall
be sent by certified or registered mail, postage prepaid, to each such holder at its address as
shown on the books of the Company or to the Company at the address indicated therefor on the
signature page of this Warrant.
15. Binding Effect on Successors. This Warrant shall be binding upon any corporation
succeeding the Company by merger, consolidation or acquisition of all or substantially all of the
Company’s assets, and all of the obligations of the Company relating to the Series Preferred
issuable upon the exercise or conversion of this Warrant shall survive the exercise, conversion and
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termination of this Warrant and all of the covenants and agreements of the Company shall inure to
the benefit of the successors and assigns of the holder hereof.
16. Lost Warrants or Stock Certificates. The Company covenants to the holder hereof
that, upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate and, in the case of any such
loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company, or
in the case of any such mutilation upon surrender and cancellation of such Warrant or stock
certificate, the Company will make and deliver a new Warrant or stock certificate, of like tenor,
in lieu of the lost, stolen, destroyed or mutilated Warrant or stock certificate.
17. Descriptive Headings. The descriptive headings of the various Sections of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant. The
language in this Warrant shall be construed as to its fair meaning without regard to which party
drafted this Warrant.
18. Governing Law. This Warrant shall be construed and enforced in accordance with,
and the rights of the parties shall be governed by, the laws of the State of California.
19. Survival of Representations, Warranties and Agreements. All representations and
warranties of the Company and the holder hereof contained herein shall survive the Date of Grant,
the exercise or conversion of this Warrant (or any part hereof) or the termination or expiration of
rights hereunder. All agreements of the Company and the holder hereof contained herein shall
survive indefinitely until, by their respective terms, they are no longer operative.
20. Remedies. In case any one or more of the covenants and agreements contained in
this Warrant shall have been breached, the holders hereof (in the case of a breach by the Company),
or the Company (in the case of a breach by a holder), may proceed to protect and enforce their or
its rights either by suit in equity and/or by action at law, including, but not limited to, an
action for damages as a result of any such breach and/or an action for specific performance of any
such covenant or agreement contained in this Warrant.
21. No Impairment of Rights. The Company will not, by amendment of its Charter or
through any other means, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such action as may be necessary or appropriate in order to protect the
rights of the holder of this Warrant against impairment
22. Severability. The invalidity or unenforceability of any provision, of this
Warrant in any jurisdiction shall not affect the validity or enforceability of such provision in
any other jurisdiction, or affect any other provision of this Warrant, which shall remain in full
force and effect.
23. Recovery of Litigation Costs. If any legal action or other proceeding is brought
for the enforcement of this Warrant, or because of an alleged dispute, breach, default, or
misrepresentation in connection with any of the provisions of this Warrant, the successful or
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prevailing party or parties shall be entitled to recover reasonable attorneys’ fees and other costs
incurred in that action or proceeding, in addition to any other relief to which it or they may be
entitled.
24. Entire Agreement: Modification. This Warrant constitutes the entire agreement
between the parries pertaining to the subject matter contained in it and supersedes all prior and
contemporaneous agreements, representations, and undertakings of the parties, whether oral or
written, with respect to such subject matter.
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The Company has caused this Warrant to be duly executed and delivered as of the Date of Grant
specified above.
| COMSCORE NETWORKS, INC. | ||||||
| By: | /s/ Xxxxx X. Xxxxxx | |||||
| Title: | General Counsel & Corporate Secretary | |||||
| Address: | ||||||
| 00000 Xxxxxx Xxxxx Xxxx | ||||||
| Xxxxx 000 | ||||||
| Xxxxxx, XX 00000 | ||||||
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EXHIBIT A-1
NOTICE OF EXERCISE
To: COMSCORE NETWORKS, INC. (the “Company”)
| 1. | The undersigned hereby: |
o
|
elects to purchase shares of [Series Preferred Stock] [Common Stock] of the Company pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full, or | |
o
|
elects to exercise its net issuance rights pursuant to Section 10.2 of the attached Warrant with respect to Shares of [Series Preferred Stock] [Common Stock]. |
2. Please
issue a certificate or certificates representing
shares in the name of the
undersigned or in such other name or names as are specified below:
(Name)
(Address)
3. The undersigned represents that the aforesaid shares are being acquired for the account of
the undersigned for investment and not with a view to, or for resale in connection with, the
distribution thereof and that the undersigned has no present intention of distributing or reselling
such shares, all except as in compliance with applicable securities laws.
| (Signature) |
EXHIBIT A-2
NOTICE OF EXERCISE
To: COMSCORE NETWORKS, INC. (the “Company”)
1. Contingent upon and effective immediately prior to the closing (the “Closing”) of the
Company’s public offering contemplated by the Registration
Statement on
Form S ,
filed , 200 , the undersigned hereby:
o elects
to purchase shares of [Series Preferred Stock] [Common Stock] of the Company
(or such lesser number of shares as may be sold on behalf of the undersigned at the Closing)
pursuant to the terms of the attached Warrant, or
o elects to exercise its net issuance rights pursuant to Section 10.2 of the attached Warrant
with respect to
Shares of [Series Preferred Stock] [Common Stock].
2. Please deliver to the custodian for the selling shareholders a stock certificate
representing
such shares.
3. The undersigned has instructed the custodian for the selling shareholders to deliver to the
Company $ or, if less, the net proceeds due the undersigned from the sale of shares in
the aforesaid public offering. If such net proceeds are less than the purchase price for such
shares, the undersigned agrees to deliver the difference to the Company prior to the Closing.
| (Signature) |
EXHIBIT B
CHARTER
SIXTH AMENDED AND RESTATED
CERTIFICATE OF INCORPORATION
OF COMSCORE NETWORKS, INC.
a Delaware corporation
(Originally incorporated on August 18, 1999)
CERTIFICATE OF INCORPORATION
OF COMSCORE NETWORKS, INC.
a Delaware corporation
(Originally incorporated on August 18, 1999)
comScore Networks, Inc., a corporation organized and existing under and by virtue of the
General Corporation Law of the State of Delaware (the “Corporation”), does hereby certify
that:
1. The name of the corporation is comScore Networks, Inc., originally incorporated as
comScore, inc. The original Certificate of Incorporation of the corporation was filed with the
Secretary of State of the State of Delaware on August 18, 1999.
2. The amendment and restatement herein set forth has been duly approved by the Board of
Directors of the corporation and by the stockholders of the corporation pursuant to Sections 141,
228 and 242 of the General Corporation Law of the State of Delaware (“Delaware Law”).
Approval of this amendment and restatement was approved by a written consent signed by the
stockholders of the corporation pursuant to Section 228 of the Delaware Law.
3. The restatement herein set forth has been duly adopted pursuant to Section 245 of the
Delaware Law. This Amended and Restated Certificate of Incorporation restates and integrates and
amends the provisions of the corporation’s Certificate of Incorporation.
4. The text of the Certificate of Incorporation is hereby amended and restated to read in its
entirety as follows:
ARTICLE I
The name of this Corporation is comScore Networks, Inc.
ARTICLE II
The address of the registered office of the Corporation in the State of Delaware is
Corporation Trust Center, 0000 Xxxxxx Xxxxxx, xx xxx Xxxx xx Xxxxxxxxxx, Xxxxxx of Xxx Xxxxxx,
Xxxxxxxx 00000. The name of its registered agent at such address is The Corporation Trust Company.
ARTICLE III
The nature of the business or purposes to be conducted or promoted is to engage in any lawful
act or activity for which corporations may be organized under the General Corporation Law of
Delaware.
ARTICLE IV
A. Classes of Stock. This Corporation is authorized to issue two classes of stock, to
be designated, respectively, “Common Stock” and “Preferred Stock.” The total
number of shares which the Corporation is authorized to issue is One Hundred Forty Eight Million
Six Hundred Seventy Three Thousand One Hundred Twenty Four (148,673,124) shares. One Hundred
Million (100,000,000) shares shall be Common Stock, par value $0.001 per share, and Forty Eight
Million Six Hundred Seventy Three Thousand One Hundred Twenty Four (48,673,124) shares shall be
Preferred Stock, par value $0.001 per share, of which Nine Million One Hundred Eighty Seven
Thousand Five Hundred (9,187,500) shares, par value $0.001 per share, shall be designated
“Series A Preferred,” Three Million Five Hundred Thirty Five Thousand Three Hundred Eighty
Six (3,535,386) shares, par value $0.001 per share, shall be designated “Series B
Preferred,” Thirteen Million Three Hundred Fifty Five Thousand Fifty Two (13,355,052) shares,
par value $0.001 per share, shall be designated “Series C Preferred,” Three Hundred Fifty
Seven Thousand One Hundred Forty Four (357,144) shares, par value $0.001 per share, shall be
designated “Series C-1 Preferred” and Twenty Two Million Two Hundred Thirty Eight Thousand
Forty Two (22,238,042) shares, par value $0.001 per share, shall be designated “Series D
Preferred.”
The Board of Directors is further authorized to decrease (but not below the number of shares
of any such series then outstanding) the number of shares of any series. If the number of shares
of any series is so decreased, then the shares constituting such decrease shall resume the status
which they had prior to the adoption of the resolution originally fixing the number of shares of
such series.
B. Rights, Preferences, Privileges and Restrictions of Preferred Stock. The rights,
preferences, privileges and restrictions granted to and imposed on the Series A Preferred, the
Series B Preferred, the Series C Preferred, the Series C-1 Preferred and the Series D Preferred
(collectively, the “Preferred”) are as set forth below in this Article IV(B).
1. Dividend Provisions. The holders of shares of Series D Preferred shall be entitled
to receive dividends, out of any assets legally available therefore, prior and in preference to any
declaration or payment of any dividend (payable other than in Common Stock) on any other class of
capital stock of this Corporation, at the rate of eight percent (8%) of the Original Series D Issue
Price (as defined below, and as adjusted for any stock dividends, stock distributions,
combinations, consolidations or splits with respect to such shares) per share per annum. Following
the payment of any dividends to the holders of shares of Series D Preferred, the holders of shares
of Preferred (other than the Series D Preferred) shall be entitled to receive dividends, out of any
assets legally available therefor, prior and in preference to any declaration or payment of any
dividend (payable other than in Common Stock) on the Common Stock of this Corporation, at the rate
of eight percent (8%) of such series’ respective Original Issue Price (as defined below, and as
adjusted for any stock dividends, stock distributions, combinations, consolidations or splits with
respect to such shares). Such dividends shall not be cumulative and shall be paid only when, if
and as declared by the Board of Directors of the Corporation. No dividend shall be paid on shares
of a series of Preferred (other than the Series D Preferred) in any fiscal year unless the holders
of shares of each other series of Preferred (other than the Series D Preferred) participate in such
dividend, pro rata among the holders thereof based upon the full dividend amount to which they are
entitled. No dividend shall be paid on shares of Common Stock in any fiscal year unless (i) the
aforementioned
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preferential dividends of the Preferred shall have been paid in full and (ii) the holders of
Preferred participate in any such dividend on the Common Stock on a pro rata basis in proportion to
the number of shares of Common Stock held of record by each such holder of Preferred (assuming the
conversion of all Preferred into Common Stock).
2. Liquidation Preference.
a. Primary Distribution. In the event of any liquidation, dissolution or winding up
of this Corporation, either voluntary or involuntary, each holder of Series D Preferred shall be
entitled to receive, prior and in preference to any distribution of any of the assets of the
Corporation to the holders of any other class of capital stock of this Corporation by reason of
their ownership thereof, including the Series A Preferred, the Series B Preferred, the Series C
Preferred, the Series C-1 Preferred and the Common Stock, an amount equal to the sum of (x) $0.8996
(the “Original Series D Issue Price”) for each share of Series D Preferred held of record
by such holder (as adjusted for any stock dividends, stock distributions, combinations,
consolidation, or splits with respect to such shares), (y) all declared but unpaid dividends on
such shares and (z) an amount equal to 25 percent (which amount shall be pro-rated for any partial
year and computed with respect to any share from the date such share was first issued) of the
Original Series D Issue Price compounded annually in respect of each share of the Series D
Preferred held of record by such holder (as adjusted for any stock dividend, stock distributions,
combinations, consolidations or splits with respect to such shares) (the “Liquidation
Increment”); provided, however, that in no event shall any holder of Series D
Preferred receive an amount per share in excess of 2.5 times the Original Series D Issue Price (as
adjusted for any stock dividends, stock distributions, combinations, consolidations, or splits with
respect to such shares) in preference to the holders of other classes of Preferred Stock.
b. Secondary Distribution. In the event of any liquidation, dissolution or winding up
of this Corporation, either voluntary or involuntary, (i) after the full distribution of all
amounts set forth in Section 2(a) above, each holder of Series A Preferred shall be entitled to
receive, prior and in preference to any distribution of any of the assets of this Corporation to
the holders of Common Stock by reason of their ownership thereof, an amount equal to the sum of (x)
$1.00 (the “Original Series A Issue Price”) for each share of Series A Preferred held of
record by such holder (as adjusted for any stock dividends, stock distributions, combinations,
consolidations or splits with respect to such shares) and (y) all declared but unpaid dividends on
such shares, (ii) after the full distribution of all amounts set forth in Section 2(a) above, each
holder of Series B Preferred shall be entitled to receive, prior and in preference to any
distribution of any of the assets of this Corporation to the holders of Common Stock by reason of
their ownership thereof, an amount equal to the sum of (x) $4.90 (the “Original Series B Issue
Price”) for each share of Series B Preferred held of record by such holder (as adjusted for any
stock dividends, stock distributions, combinations, consolidations or splits with respect to such
shares) and (y) all declared but unpaid dividends on such shares, (iii) after the full distribution
of all amounts set forth in Section 2(a) above, each holder of Series C Preferred shall be entitled
to receive, prior and in preference to any distribution of any of the assets of this Corporation to
the holders of Common Stock by reason of their ownership thereof, an amount equal to the sum of (x)
$2.2692 (the “Original Series C Issue Price”) for each share of Series C Preferred held of
record by such holder (as adjusted for any stock dividends, stock distributions, combinations,
consolidations or splits with respect to such shares) and (y) all declared but unpaid dividends on
such shares and (iv) after the full distribution of all amounts set forth in
-3-
Section 2(a) above, each holder of Series C-1 Preferred shall be entitled to receive, prior
and in preference to any distribution of any of the assets of this Corporation to the holders of
Common Stock by reason of their ownership thereof, an amount equal to the sum of (x) $1.40 (the
“Original Series C-1 Issue Price”) for each share of Series C-1 Preferred held of record by
such holder (as adjusted for any stock dividends, stock distributions, combinations, consolidations
or splits with respect to such shares) and (y) all declared but unpaid dividends on such shares.
For purposes of this Section, the Original Series A Issue Price, Original Series B Issue Price,
Original Series C Issue Price, and Original Series C-1 Issue Price are each an “Original Issue
Price.” If upon the occurrence of such event, the assets and funds of the Corporation legally
available for distribution shall be insufficient to permit the payment to such holders of the full
aforesaid preferential amounts, then the entire assets and funds of the Corporation legally
available for distribution shall be distributed first to the holders of the Series D Preferred as
set forth in Section 2(a) above (ratably in proportion to the preferential amount each such holder
is otherwise entitled to receive) and thereafter ratably among the holders of the Series A
Preferred, Series B Preferred, Series C Preferred and Series C-1 Preferred in proportion to the
preferential amount each such holder is otherwise entitled to receive.
c. Tertiary Distribution. Subject to Section 2(d) below, upon the completion of the
distribution required by Section 2(a)-(b), the remaining assets of the Corporation available for
distribution to stockholders shall be distributed among the holders of Preferred and Common Stock
of record on a pro rata basis in proportion to the number of shares of Common Stock held of record
by each (assuming for the purposes hereof conversion of all Preferred into Common Stock).
d. Maximum Liquidation Amount. No Preferred holder shall receive, pursuant to the
operation of Sections 2(a)-2(d), with respect to any series of Preferred held by such holder, an
amount greater than the Maximum Liquidation Amount (as defined below) applicable to such series.
Once holders of a series of Preferred have received, pursuant to the operation of Sections 2(a)-(c)
above, with respect to such series of Preferred, the Maximum Liquidation Amount applicable to such
series, then the entire remaining assets and funds of the Corporation legally available for
distribution, if any, shall be distributed among the holders of Preferred (other than any series of
Preferred the holders of which have received their Maximum Liquidation Amount) and Common Stock of
record on a pro rata basis in proportion to the number of shares of Common Stock held of record by
each (assuming for purposes hereof conversion of all Preferred into Common Stock). Following such
time as all holders of Preferred have received, pursuant to the operation of Sections 2(a)-2(c)
above, the Maximum Liquidation Amount (as defined below) for their respective shares of Preferred,
then the entire remaining assets and funds of the Corporation legally available for distribution,
if any, shall be distributed ratably among the holders of Common Stock in a manner such that the
amount distributed to each holder of Common Stock shall equal the result obtained by multiplying
the entire remaining assets and funds of the Corporation legally available for distribution
hereunder by a fraction, the numerator of which shall be the number of shares of Common Stock then
held by such holder, and the denominator of which shall be the total number of shares of Common
Stock then outstanding. For purposes of this Section 2(d), the “Maximum Liquidation
Amount” for each share of Series A Preferred shall mean 2.5 times the Original Series A Issue
Price, the “Maximum Liquidation Amount” for each share of Series B Preferred shall mean 2.5
times the Original Series B Issue Price, the “Maximum Liquidation Amount” for each share of
Series C Preferred shall mean 2.5 times the Original Series C Issue Price, the “Maximum
Liquidation
-4-
Amount” for each share of Series C-1 Preferred shall mean 2.5 times the Original
Series C-1 Issue Price and the “Maximum Liquidation Amount” for each share of Series D
Preferred shall mean 2.5 times the Original Series D Issue Price, each as adjusted in the manner
contemplated by clauses (i) and (ii) of Section 3(d) hereof.
e. Notwithstanding anything in this Section 2 to the contrary, if a holder of Preferred would
receive a greater liquidation amount than such holder is entitled to receive pursuant to
subsections 2(a)-(d) by converting such shares of Preferred into shares of Common Stock, then such
holder shall not receive any amounts under subsection 2(a)-(b), but shall be treated for purposes
of this Section 2 as though they had converted into shares of Common Stock, whether or not such
holders had elected to so convert.
f. Definition of Liquidation Event; Notice.
(i) Each of the following events shall be deemed to be a liquidation, dissolution or winding
up within the meaning of this Section 2: (i) a consolidation or merger of the Corporation with or
into any other corporation or corporations (or entity or entities) (unless the Corporation’s
stockholders of record as constituted immediately prior to such transaction will, immediately after
such transaction, hold at least a majority of the voting power of the surviving or successor entity
to the business and assets of the corporation (solely in respect of their equity interests in the
Corporation before the transaction)); (ii) a sale, conveyance or disposition of all or
substantially all of the assets of the Corporation (other than a pledge of assets or grant of
security interest therein to a commercial lender or similar entity in connection with commercial
lending or similar transactions) (unless the Corporation’s stockholders of record as constituted
immediately prior to such transaction will, immediately after such transaction, hold at least a
majority of the voting power of the surviving entity or successor to the business and assets of the
Corporation (solely in respect of their equity interests in the Corporation before the
transaction)); or (iii) the effectuation of a transaction or series of related transactions in
which at least a majority of the Corporation’s then outstanding voting power is transferred to
another entity.
(ii) In any of such events, if the consideration received by the Corporation is other than
cash, its value will be deemed its fair market value. Any securities shall be valued as follows:
(A) Securities not subject to an exchange ratio specified in a definitive merger or
acquisition agreement, or to any investment letter or other similar restrictions on free
marketability shall be valued as follows: (1) if traded on a securities exchange or through The
Nasdaq National Market, the value shall be deemed to be the average of the closing prices of the
securities on such exchange over the ten (10) trading day period ending three (3) days prior to the
closing; (2) if actively traded over-the-counter, the value shall be deemed to be the average of
the closing bid or sale prices (whichever is applicable) over the thirty (30) day period ending
three (3) days prior to the closing; and (3) if there is no active public market, the value shall
be the fair market value thereof, as determined in good faith by the Board of Directors of the
Corporation.
(B) Securities subject to an exchange ratio specified in a definitive merger or acquisition
agreement or to any investment letter or other restrictions on free
-5-
marketability (other than restrictions arising solely by virtue of a stockholder’s status as
an affiliate or former affiliate) shall be valued in such a manner as to make an appropriate
discount from the market value determined as above in (A)(1), (2) or (3) to reflect the approximate
fair market value thereof, as determined in good faith by the Board of Directors of the
Corporation.
(iii) The Corporation shall give each holder of record of Preferred written notice of any such
impending transaction not later than twenty (20) days prior to the earlier of the stockholder
meeting called to approve such transaction or the closing of such transaction, and shall also
notify such holders in writing of the final approval of such transaction. The first of such
notices shall describe the material terms and conditions of the impending transaction, the
provisions of this Section 2, and the amounts anticipated to be distributed to holders of each
outstanding class of capital stock of the Corporation pursuant to this Section 2, and the
Corporation shall thereafter give such holders prompt notice of any material changes. The
transaction shall in no event take place sooner than twenty (20) days after the Corporation has
given the first notice provided for herein or sooner than ten (10) days after the Corporation has
given notice of any material changes provided for herein; provided, however, that
such periods may be shortened upon the written consent of the holders of each series of Preferred
that are entitled to such notice rights or similar notice rights and that represent at least a
majority of the voting power of the then outstanding shares of such series of Preferred.
(iv) In the event the requirements of subsection 2(d)(iii) are not complied with, this
Corporation shall forthwith either:
(A) cause such closing to be postponed until such time as the requirements of subsection
2(d)(iii) have been complied with; or
(B) cancel such transaction, in which event the rights, preferences and privileges of the
holders of the Preferred shall revert to and be the same as such rights, preferences and privileges
existing immediately prior to the date of the first notice referred to in subsection 2(d)(iii).
3. Conversion. The holders of Preferred shall have conversion rights as follows (the
“Conversion Rights”):
a. Right to Convert. Each share of Preferred shall be convertible, at the option of
the holder thereof, at any time after the date of issuance of such share at the office of this
Corporation or any transfer agent for such stock, into such number of fully paid and nonassessable
shares of Common Stock as is determined by dividing (i) in the case of the Series A Preferred, the
Original Series A Issue Price in respect of such share by the Series A Conversion Price applicable
to such share, determined as hereafter provided, in effect on the date the certificate is
surrendered for conversion, (ii) in the case of the Series B Preferred, the Original Series B Issue
Price in respect of such share by the Series B Conversion Price applicable to such share,
determined as hereafter provided, in effect on the date the certificate is surrendered for
conversion, (iii) in the case of the Series C Preferred, the Original Series C Issue Price in
respect of such share by the Series C Conversion Price applicable to such share, determined as
hereafter provided, in effect on the date the certificate is surrendered for conversion, (iv) in
the case of the Series C-1 Preferred, the Original
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Series C-1 Issue Price in respect of such share by the Series C-1 Conversion Price applicable
to such share, determined as hereafter provided, in effect on the date the certificate is
surrendered for conversion and (v) in the case of the Series D Preferred, the Original Series D
Issue Price in respect of such share by the Series D Conversion Price applicable to such share,
determined as hereinafter provided, in effect on the date the certificate is surrendered for
conversion (the result of this calculation in Section 3(a)(v) is referred to herein as the
“Series D Conversion Rate”). Assuming the issuance of 21,564,020 shares of Series D
Preferred at a per share price of $0.8996, at the close of business on the date such issuance is
completed, the Series A Conversion Price per share shall be $0.97; the Series B Conversion Price
per share shall be $3.10, the Series C Conversion Price per share shall be $1.82, the Series C-1
Conversion price per share shall be the Original Series C-1 Issue Price, and the Series D
Conversion Price per share shall be the Original Series D Issue Price; provided,
however, that in each case such Conversion Price shall be subject to adjustment as set
forth below (the Series A Conversion Price, the Series B Conversion Price, the Series C Conversion
Price, the Series C-1 Conversion Price and the Series D Conversion Price are individually or
collectively referred to herein as the “Conversion Price”).
b. Automatic Conversion. Each share of Preferred shall automatically be converted
into shares of Common Stock at the Conversion Price at the time in effect for such Preferred
immediately upon the earlier of (i) except as provided below in the last sentence of subsection
3(c), the Corporation’s sale of its Common Stock in an underwritten public offering pursuant to a
Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”),
conducted by a nationally recognized reputable underwriter in which (x) the per share public
offering price as shown on the cover page of the final prospectus relating to such offering (prior
to underwriter discounts, commissions, concessions and expenses) (the “Prospectus Price”)
is equal to or exceeds 3 times the Original Series D Issue Price (as adjusted for any stock
dividend, stock distributions, combinations, consolidations or splits with respect to such shares)
and (y) the gross proceeds to the Corporation are in excess of $25,000,000 (a “Qualified
IPO”), or (ii) the date specified by written consent or agreement of the holders of at least a
majority of the voting power of the then outstanding shares of Series A Preferred, Series B
Preferred, Series C Preferred, Series C-1 Preferred and Series D Preferred, each voting separately
as a class (except for the Series C Preferred and the Series C-1 Preferred which shall vote
together as a class); provided, that, a supermajority two-thirds (2/3) vote of the
Series D Preferred shall be required to convert the Series D Preferred under Section 3(b)(ii)
unless, as a result of such conversion, only in connection with a public offering, one share of
Series D Preferred converts directly or indirectly into a share of Common Stock with a Prospectus
Price that exceeds the Minimum Amount. For purposes hereof, the “Minimum Amount” means the
lesser of (A) 2.0 times the Original Series D Issue Price (as adjusted for any stock dividend,
stock distributions, combinations, consolidations or splits with respect to such shares) and (B)
the Original Series D Issue Price (as adjusted for any stock dividend, stock distributions,
combinations, consolidations or splits with respect to such shares) plus the Liquidation Increment
as of the date of such conversion.
c. Mechanics of Conversion. Before any holder of Preferred shall be entitled to
convert the same into shares of Common Stock, such holder shall surrender the certificate or
certificates therefor, duly endorsed, at the office of this Corporation or of any transfer agent
for the Preferred, and shall give written notice to this Corporation at its principal corporate
office, of the election to convert the same and shall state therein the name or names in which the
certificate or
-7-
certificates for shares of Common Stock are to be issued. This Corporation shall, as soon as
practicable thereafter, issue and deliver at such office to such holder of Preferred, or to the
nominee or nominees of such holder, a certificate or certificates for the number of shares of
Common Stock to which such holder shall be entitled as aforesaid. Such conversion shall be deemed
to have been made immediately prior to the close of business on the date of such surrender of the
shares of Preferred to be converted, and the person or persons entitled to receive the shares of
Common Stock issuable upon such conversion shall be treated for all purposes as the record holder
or holders of such shares of Common Stock as of such date. If the conversion is in connection with
an underwritten offering of securities registered pursuant to the Securities Act, the conversion,
unless otherwise designated by the holder, will be conditioned upon the closing with the
underwriters of the sale of securities pursuant to such offering, in which event the person(s)
entitled to receive the Common Stock upon conversion of the Preferred shall not be deemed to have
converted such Preferred until immediately prior to the closing of such sale of securities.
d. Conversion Price Adjustments of Preferred Stock for Certain Splits, Dividends and
Combinations. The Conversion Price of the Preferred shall be subject to adjustment from time
to time as follows:
(i) In the event that the Corporation should at any time or from time to time after the date
upon which the first shares of Series D Preferred were issued (such date being the “Series D
Original Issue Date”) fix a record date for the effectuation of a split or subdivision of the
outstanding shares of Common Stock or for the determination of the outstanding shares of Common
Stock entitled to receive a dividend or other distribution payable in additional shares of Common
Stock without payment of any consideration by such holder for the additional shares of Common
Stock, then, as of such record date (or the date of such dividend, distribution, split or
subdivision if no record date is fixed), the Conversion Price of such series of Preferred shall be
appropriately decreased so that the number of shares of Common Stock issuable on conversion of each
share of such series shall be increased in proportion to such increase of the aggregate of shares
of Common Stock outstanding.
(ii) In the event that the Corporation should at any time or from time to time after the
Series D Original Issue Date fix a record date for the effectuation of a combination or reverse
stock split of the outstanding shares of Common Stock, then, as of such record date (or the date of
such combination or reverse stock split if no record date is fixed), the Conversion Price of such
series of Preferred shall be appropriately increased so that the number of shares of Common Stock
issuable on conversion of each share of such series shall be decreased in proportion to such
decrease in the aggregate shares of Common Stock outstanding.
e. Other Distributions. In the event that the Corporation shall at any time or from
time to time after the Series D Original Issue Date declare a distribution payable in securities of
other persons, evidences of indebtedness issued by this Corporation or other persons, assets
(excluding cash dividends) or options or rights not referred to in Section 3(d)(i), then, in each
such case for the purpose of this Section 3(e), the holders of the Preferred shall be entitled to a
proportionate share of any such distribution as though they were the holders of the number of
shares of Common Stock of the Corporation into which their shares of Preferred are convertible as
of the
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record date fixed for the determination of the holders of Common Stock of the Corporation
entitled to receive such distribution.
f. Recapitalizations. If at any time or from time to time after the Series D Original
Issue Date there shall be a recapitalization of the Common Stock (other than a subdivision,
combination or merger or sale of assets transaction provided for elsewhere in this Section 3 or
Section 2), provision shall be made so that the holders of the Preferred shall thereafter be
entitled to receive upon conversion of the Preferred the number of shares of stock or other
securities or property of the Corporation or otherwise, which a holder of Common Stock deliverable
upon conversion immediately prior to such recapitalization would have been entitled to receive on
such recapitalization. In any such case, appropriate adjustment shall be made in the application
of the provisions of this Section 3 with respect to the rights of the holders of the Preferred
after the recapitalization to the extent that the provisions of this Section 3 (including
adjustment of the applicable Conversion Price then in effect and the number of shares purchasable
upon conversion of the Preferred) shall be applicable after that event as nearly equivalently as
may be practicable.
g. Adjustments to Conversion Price for Dilutive Issues.
(i) Special Definitions. For purposes of this Section 3(g), the following definitions
shall apply:
(A) “Additional Shares of Common” shall mean all shares of Common Stock issued (or,
pursuant to Section 3(g)(iii), deemed to be issued) by the Corporation after the Series D Original
Issue Date, other than shares of Common Stock issued, issuable or, pursuant to Section 3(g)(iii)
herein, deemed to be issued:
(1) upon conversion of shares of the Preferred;
(2) to officers, directors or employees of, or consultants, contractors and advisors to, the
Corporation pursuant to a stock grant, option plan or purchase plan or other stock incentive
program or arrangement approved by the Compensation Committee of the Board of Directors (or, in the
absence of such a committee, then by the Board of Directors) for employees, officers, directors or
consultants, contractors or advisors of the Corporation;
(3) as a dividend or distribution on the Preferred;
(4) in connection with any transaction for which adjustment is made pursuant to Sections
3(d)(i), 3(d)(ii), 3(e) or 3(f) hereof;
(5) to financial institutions, lessors or landlords in connection with commercial credit
arrangements, debt financings, equipment lease financings, real property leases or similar
transactions undertaken other than for equity financing purposes, or to other providers of goods,
services, technology, distribution channels or marketing opportunities to the Corporation, pursuant
to (i) instruments that are outstanding on the Series D Original Issue Date or (ii) arrangements
approved by the Board of Directors, but not to exceed an aggregate of 885,201 shares of Common
Stock issued, issuable or deemed to be issued (net of cancellations of unexercised
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options and repurchase of shares at cost upon termination of any relationship with the
Corporation, as adjusted for stock splits, combinations, recapitalizations and the like and
excluding any shares of Common Stock issued or issuable to DoubleClick, Inc.
(“DoubleClick”) (or an affiliate, successor or designee thereof) in connection with a
Master Alliance Agreement between Doubleclick and the Corporation) for arrangements approved by the
Board of Directors;
(6) in connection with a Qualified IPO; or
(7) in connection with an acquisition by the Corporation, whether by merger, consolidation or
purchase of assets, provided that such acquisition has been approved by a majority of the Board of
Directors, which majority must include at least three of the four directors elected pursuant to
Section 5(f) of this Article.
(B) “Convertible Securities” shall mean stock or other securities convertible into or
exchangeable for Common Stock.
(C) “Options” shall mean rights, options or warrants to subscribe for, purchase or
otherwise acquire either Common Stock or Convertible Securities.
(ii) No Adjustment of Conversion Price. No adjustment in the Conversion Price of a
series of Preferred shall be made in respect of the issuance of Additional Shares of Common unless
the consideration per share for an Additional Share of Common issued or deemed to be issued by the
Corporation is less then the applicable Conversion Price of such series of Preferred in effect on
the date of, and immediately prior to, such issue.
(iii) Options and Convertible Securities. In the event that the Corporation at any
time or from time to time after the Series D Original Issue Date shall issue any Options or
Convertible Securities or shall fix a record date for the determination of holders of any class of
securities entitled to receive any such Options or Convertible Securities, then the maximum number
of shares of Common Stock issuable upon the exercise of such Options or, in the case of Convertible
Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall
be deemed to be Additional Shares of Common issued as of the time of such issue or, in case such a
record date shall have been fixed, as of the close of business on such record date;
provided, however, that, with respect to any series of Preferred, Additional Shares
of Common shall not be deemed to have been issued unless the consideration per share (determined
pursuant to Section 4(g)(v) hereof) of such Additional Shares of Common would be less than the
applicable Conversion Price of such series of Preferred in effect on the date of and immediately
prior to such issue, or such record date, as the case may be, and provided,
further, that in any such case in which Additional Shares of Common are deemed to be
issued:
(A) no further adjustment in the applicable Conversion Price of a series of Preferred shall be
made upon the subsequent issue of Convertible Securities or shares of Common Stock upon the
exercise of such Options or conversion or exchange of such Convertible Securities, in each case,
pursuant to their respective terms;
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(B) if such Options or Convertible Securities by their terms provide, with the passage of time
or otherwise, for any increase in the consideration payable to the Corporation, or decrease in the
number of shares of Common Stock issuable, upon the exercise, conversion or exchange thereof, the
applicable Conversion Price of a series of Preferred computed upon the original issue thereof (or
upon the occurrence of a record date with respect thereto), and any subsequent adjustments based
thereon, shall, upon any such increase or decrease becoming effective, be recomputed to reflect
such increase or decrease insofar as it affects such Options or the rights of conversion or
exchange under such Convertible Securities;
(C) upon the expiration of any such Options or any rights of conversion or exchange under such
Convertible Securities which shall not have been exercised, the applicable Conversion Price of a
series of Preferred computed upon the original issue thereof (or upon the occurrence of a record
date with respect thereto), and any subsequent adjustments based thereon, shall, upon such
expiration, be recomputed as if:
(1) in the case of Convertible Securities or Options for Common Stock, the only Additional
Shares of Common issued were shares of Common Stock, if any, actually issued upon the exercise of
such Options or the conversion or exchange of such Convertible Securities and the consideration
received therefor was the consideration actually received by the Corporation for the issue of all
such Options, whether or not exercised, plus the consideration actually received by the Corporation
upon such exercise, or for the issue of all such Convertible Securities which were actually
converted or exchanged, plus the additional consideration, if any, actually received by the
Corporation upon such conversion or exchange, and
(2) in the case of Options for Convertible Securities, only the Convertible Securities, if
any, actually issued upon the exercise thereof were issued at the time of issue of such Options,
and the consideration received by the Corporation for the Additional Shares of Common deemed to
have been then issued was the consideration actually received by the Corporation for the issue of
all such Options, whether or not exercised, plus the consideration deemed to have been received by
the Corporation upon the issue of the Convertible Securities with respect to which such Options
were actually exercised; and
(D) no readjustment pursuant to clauses (1) or (2) above shall have the effect of increasing
the Conversion Price for a series of Preferred to an amount which exceeds the lower of (i) (v) in
the case of the Series A Preferred, the Original Series A Issue Price, (w) in the case of the
Series B Preferred, the Original Series B Issue Price, (x) in the case of the Series C Preferred,
the Original Series C Issue Price, (y) in the case of the Series C-1 Preferred, the Original Series
C-1 Issue Price and (z) in the case of the Series D Preferred, the Original Series D Issue Price,
or (ii) the applicable Conversion Price that would have resulted from other issuances of Additional
Shares of Common after the Original Issue Date for such Series.
(iv) Adjustment of Conversion Price Upon Issuance of Additional Shares of Common. In
the event that this Corporation shall issue Additional Shares of Common (including Additional
Shares of Common deemed to be issued pursuant to Section 3(g)(iii)) without consideration or for a
consideration per share less than the applicable Conversion Price in effect on the date of and
immediately prior to such issue, then and in such event such applicable Conversion
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Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest
cent) determined by multiplying such applicable Conversion Price theretofore in effect by a
fraction, the numerator of which shall be the number of shares of Common Stock outstanding
immediately prior to such issue plus the number of shares of Common Stock which the aggregate
consideration received by the Corporation for the total number of Additional Shares of Common so
issued would purchase at such applicable Conversion Price in effect immediately prior to such
issue, and the denominator of which shall be the number of shares of Common Stock outstanding
immediately prior to such issue plus the number of such Additional Shares of Common so issued and
sold; provided, however, that, for the purposes of this Section 3(g)(iv), all
shares of Common Stock issuable upon exercise, conversion or exchange of outstanding Options or
Convertible Securities, as the case may be, shall be deemed to be outstanding, and immediately
after any Additional Shares of Common are deemed issued pursuant to Section 3(g)(iii), such
Additional Shares of Common shall be deemed to be outstanding.
(v) Determination of Consideration. For purposes of this Section 3(g), the
consideration received by the Corporation for the issue of any Additional Shares of Common shall be
computed as follows:
(A) Cash and Property. Such consideration shall:
(1) insofar as it consists of cash, be computed at the aggregate amount of cash received by
the Corporation excluding amounts paid or payable for accrued interest or accrued dividends;
(2) insofar as it consists of property other than cash, be computed at the fair market value
thereof at the time of such issue, as determined in good faith by the Board of Directors; and
(3) in the event Additional Shares of Common are issued together with other shares or
securities or other assets of the Corporation for consideration which covers both, be the
proportion of such consideration so received, computed as provided in clauses (1) and (2) above, as
determined in good faith by the Board of Directors.
(B) Options and Convertible Securities. The consideration per share received by the
Corporation for Additional Shares of Common deemed to have been issued pursuant to Section
3(g)(iii), relating to Options and Convertible Securities, shall be determined by dividing:
(1) the total amount, if any, received or receivable by the Corporation as consideration for
the issue of such Options or Convertible Securities, plus the minimum aggregate amount of
additional consideration payable to the Corporation upon the exercise of such Options or the
conversion or exchange of such Convertible Securities, or in the case of Options for Convertible
Securities, the exercise of such Options for Convertible Securities and the conversion or exchange
of such Convertible Securities, by
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(2) the maximum number of shares of Common Stock issuable upon the exercise of such Options or
the conversion or exchange of such Convertible Securities, as determined in Section 3(g)(iii)
hereof.
h. Special Adjustment. In the event that the Corporation does not complete the
acquisition of certain assets of Jupiter Media Metrix, Inc. (or any successor or affiliate thereof)
(“JMXI”) by August 1, 2002 for the price of approximately $2 million (less any adjustments as
provided in the asset purchase agreement to be entered into between the Corporation and JMXI, but
in no event less than $1.25 million), then there shall be adjustments to the respective Conversion
Price of the Series A Preferred to $0.94, the Series B Preferred to $3.01, the Series C Preferred
to $1.77, the Series C-1 Preferred to $1.38 and the Series D Preferred to $0.83, respectively.
i. No Impairment. Without obtaining the applicable approvals set forth in Section 5,
the Corporation will not, by amendment of its Certificate of Incorporation or through any
reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed hereunder by the Corporation, but will
at all times in good faith assist in the carrying out of all the provisions of this Section 3 and
in the taking of all such action as may be necessary or appropriate in order to protect the
Conversion Rights of the holders of the Preferred against impairment.
j. No Fractional Shares; Certificate as to Adjustment.
(i) No fractional shares shall be issued upon the conversion of any share or shares of the
Preferred, and the number of shares of Common Stock to be issued shall be rounded to the nearest
whole share. Whether or not fractional shares are issuable upon such conversion shall be
determined on the basis of the total number of shares of Preferred the holder is at the time
converting into Common Stock and the number of shares of Common Stock issuable upon such aggregate
conversion.
(ii) Upon the occurrence of each adjustment or readjustment of the applicable Conversion Price
of Preferred pursuant to this Section 3, the Corporation, at its expense, shall promptly compute
such adjustment or readjustment in accordance with the terms hereof and prepare and furnish to each
holder of such Preferred a certificate setting forth such adjustment or readjustment and showing in
detail the facts upon which such adjustment or readjustment is based. The Corporation shall, upon
the reasonable written request at any time of any holder of Preferred, furnish or cause to be
furnished to such holder a like certificate setting forth (A) such adjustment and readjustment, (B)
the applicable Conversion Price for the Preferred at the time in effect, and (C) the number of
shares of Common Stock and the amount, if any, of other property which at the time would be
received upon the conversion of a share of Preferred held by such holder.
k. Notices of Record Date. In the event of any taking by the Corporation of a record
date for determining the holders of any class of securities who are entitled to receive any
dividend (other than a cash dividend) or other distribution, any right to subscribe for, purchase
or otherwise acquire any shares of stock of any class or any other securities or property, or to
receive any other right, this Corporation shall mail to each holder of Preferred, at least twenty
(20) days
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prior to the record date specified therein, a notice specifying the record date for the
purpose of such dividend, distribution or right, and the amount and character of such dividend,
distribution or right.
l. Reservation of Stock Issuable Upon Conversion. This Corporation shall at all times
reserve and keep available out of its authorized but unissued shares of Common Stock, solely for
the purpose of effecting the conversion of the then outstanding shares of the Preferred, such
number of its shares of Common Stock as shall from time to time be sufficient to effect the
conversion of all outstanding shares of the Preferred; and if at any time the number of authorized
but unissued shares of Common Stock shall not be sufficient to effect the conversion of all then
outstanding shares of the Preferred, in addition to such other remedies as shall be available to
the holder of such Preferred, the Corporation will take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock
to such number of shares as shall be sufficient for such purposes, including without limitation
engaging in best efforts to obtain the requisite Board of Directors and stockholder approval of any
necessary amendment to this Sixth Amended and Restated Certificate of Incorporation.
m. Notices. All notices and other communications required by the provisions of this
Sixth Amended and Restated Certificate of Incorporation shall be in writing, shall be effective
when given, and shall in any event be deemed to be given upon receipt or, if earlier, (a) five (5)
business days after deposit with the U.S. Postal Service or other applicable postal service, if
delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one
(1) business day after the business day of deposit with Federal Express or similar overnight
courier, freight prepaid or (d) one (1) business day after the business day of facsimile
transmission (with written confirmation).
4. Redemption.
a. Preferred Redemption. Each share of Preferred shall be redeemable on or after June
6, 2006, to the extent the shares of Preferred have not been redeemed prior to such date and to the
extent requested by any holder thereof.
b. Redemption Price. The redemption price per share (the “Redemption Price”)
shall be (i) in the case of the Series A Preferred, the Original Series A Issue Price plus all
accrued and unpaid dividends on such share, (ii) in the case of the Series B Preferred, the
Original Series B Issue Price plus all accrued and unpaid dividends on such share, (iii) in the
case of the Series C Preferred, the Original Series C Issue Price plus all accrued and unpaid
dividends on such share, (iv) in the case of the Series C-1 Preferred, the Original Series C-1
Issue Price plus all accrued and unpaid dividends on such share and (v) in the case of the Series D
Preferred, the Original Series D Issue Price, plus the Liquidation Increment plus all accrued and
unpaid dividends on such share; provided, however, that in no event shall any
holder of Series D Preferred receive an amount per share in excess of 2.5 times the Original Series
D Issue Price plus all accrued and unpaid dividends on such share in connection with such
redemption. In the event insufficient funds are available to redeem all shares of Preferred
entitled and electing to be redeemed pursuant to the preceding paragraph, this Corporation shall
(i) first apply funds to the redemption of the Series D Preferred and (ii) after the full
redemption of all shares of the Series D Preferred, then shall effect such redemption pro rata
among the holders of the Preferred (other than the Series D Preferred)
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based upon the aggregate Redemption Price of the shares held by such holder for which redemption has been
requested.
c. Notice of Redemption. Before any holder of Preferred shall be entitled to redeem
the same, such holder shall give written notice to this Corporation at its principal corporate
office and to all other holders of Preferred not earlier than June 6, 2006 and not later than June
6, 2006, of the election to redeem the same and shall state therein the number of shares of
Preferred to be redeemed, the date fixed for such redemption (the “Redemption Date”), which
date shall be not less than 30 nor more than 45 days after the date of such notice, and, in the
event less than all of such holder’s shares of Preferred are to be redeemed, the name or names in
which the certificate or certificates representing the shares not to be redeemed are to be issued.
On or before the Redemption Date, the related holder of Preferred shall surrender the certificate
or certificates therefor, duly endorsed, at the office of this Corporation or of any transfer agent
for the Preferred. If less than all the shares represented by a share certificate are to be
redeemed, the Corporation shall issue a new certificate or certificate representing the shares not
redeemed. Upon proper notice and surrender, the redeeming holder shall be entitled to receive
payment of the applicable Redemption Price for such shares in cash, by wire transfer or by
bank-certified check on the Redemption Date. Notwithstanding the foregoing, in no event shall any
redemption occur of any shares of Series A Preferred, Series B Preferred, Series C Preferred or
Series C-1 Preferred unless and until the holders of the Series D Preferred shall have redeemed or
waived the right to redeem all shares of the Series D Preferred (which right will be deemed to be
waived by a holder if such holder does not give the Corporation notice of redemption pursuant to
this Section 4(c) before June 6, 2006).
d. Status of Redeemed Preferred. From and after the Redemption Date for any shares of
Preferred, all dividends on such shares shall cease to accrue and all rights of holders of such
shares shall cease.
5. Voting Rights.
a. General Voting Rights. Each holder of shares of Preferred shall be entitled to a
number of votes equal to the number of shares of Common Stock into which the shares of Preferred
held by such holder could be converted, shall have voting rights and powers equal to the voting
rights and powers of the holders of Common Stock (except otherwise expressly provided herein or as
required by law) and shall be entitled to notice of any stockholder meeting in accordance with the
Bylaws of the Corporation. Fractional votes shall not be permitted and any fractional voting
rights resulting from the above formula (after aggregating all shares into which shares of
Preferred held by each holder could be converted) shall be rounded to the nearest whole number
(with one-half being rounded upward). Except as provided by law, this Corporation’s Sixth Amended
and Restated Certificate of Incorporation or the provisions establishing any outstanding series of
Preferred Stock, holders of shares of Preferred shall vote together with the holders of all
outstanding shares of Common Stock as a single class.
b. Required Class Vote. In addition to any other rights provided by law, for so long
as at least Seven Hundred Fifty Thousand (750,000) shares of Preferred (as adjusted for any stock
dividends, stock distributions, combinations, consolidations or splits with respect to such shares)
shall be outstanding, this Corporation shall not, without first obtaining the affirmative vote or
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written consent of each of the holders of not less than a majority of the voting power of the
then outstanding shares of Preferred, voting as a single class, on an as-converted basis, purchase,
redeem or set aside any sums for the purchase or redemption of, or pay any dividend or make any
distribution on, any shares of capital stock, except for dividends or other distributions payable
on the Common Stock solely in the form of additional shares of Common Stock and except for the
purchase of shares of Common Stock from employees, consultants or service providers or former
employees, consultants or service providers of the Corporation who acquired such shares directly
from the Corporation, if each such purchase is made pursuant to contractual rights held by the
Corporation under agreements entered into with persons in connection with their employment with or
provision of services to the Corporation or pursuant to employee benefit plans; or
c. Required Series Vote. In addition to any other rights provided by law, for so long
as at least Seven Hundred Fifty Thousand (750,000) shares of a series of Preferred (as adjusted for
any stock dividends, stock distributions, combinations, consolidations or splits with respect to
such shares) shall be outstanding, this Corporation shall not, without first obtaining the
affirmative vote or written consent of the holders of not less than a majority of the voting power
of the then outstanding shares of each such series of Preferred, each voting separately (except for
the Series C Preferred and the Series C-1 Preferred which shall vote together as a class):
(i) authorize any action (including without limitation the amendment or repeal of any
provision of, or the addition of any provision to, this Corporation’s Certificate of Incorporation
or Bylaws), if such action would materially alter or change the preferences, rights, privileges or
powers of, or the restrictions provided for the benefit of, such series of Preferred;
(ii) increase or decrease the total number of authorized shares of the Preferred (or any such
series thereof);
(iii) authorize a liquidation, dissolution, winding up, recapitalization or reorganization of
the Corporation, or a sale, lease or other transfer of all or substantially all of the assets of
the Corporation or a merger or consolidation of the Corporation if, as a result of such merger or
consolidation, the stockholders of the Corporation shall own (by virtue of shares held in the
Corporation) less than fifty percent (50%) of the voting securities of the surviving entity or
shall not be entitled to elect a majority of the Board of Directors (or similar governing body) of
the surviving entity; provided that this clause shall not apply to mergers for which the
sole purpose is to change the Corporation’s jurisdiction of incorporation or a reorganization
pursuant to the provisions of Section 251(g) of the Delaware General Corporation Law; or
(iv) authorize shares of any series or class of capital stock or any other security
convertible into or exchangeable for shares of any series or class of capital stock which is senior
to or on parity with such series of Preferred.
d. Affected Series Vote. In addition to any other rights provided by law, for so long
as at least Seven Hundred Fifty Thousand (750,000) shares of a series of Preferred (as adjusted for
any stock dividends, stock distributions, combinations, consolidations or splits with respect to
such shares) shall be outstanding, this Corporation shall not, without first obtaining the
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affirmative vote or written consent of the holders of not less than a majority of the voting
power of the then outstanding shares of each such series of Preferred so affected (the
“Affected Series”), each voting separately (except for the Series C Preferred and the
Series C-1 Preferred which shall vote together as a class), authorize any action (including
without limitation the amendment or repeal of any provision of, or the addition of any provision
to, this Corporation’s Amended and Restated Certificate of Incorporation or Bylaws), if such action
would materially alter or change the preferences, rights, privileges or powers of, or the
restrictions provided for the benefit of, such Affected Series of Preferred; provided,
however, that, subject to the automatic conversion provisions set forth in Section 3(b),
the voting threshold required for a vote of the Series D Preferred pursuant to this subsection
shall be a two-thirds (2/3) supermajority of the voting power of the then outstanding shares of the
Series D Preferred unless, subject to the following sentence, such vote is taken (i) in connection
with the creation or amendment of one or more management carveout, incentive or bonus pools or
similar arrangements so long as such pools or arrangements are approved by the Corporation’s Board
of Directors and the holders of a majority of Preferred Stock (on an as-converted to Common Stock
basis) and are in connection with a liquidation event (as defined in Section 2(f) hereof) ) or in
the good faith judgment of the Board of Directors are otherwise necessary for the retention of
management, (ii) in connection with any action taken to approve (x) a convertible debt bridge
financing in contemplation of an equity financing or an equity financing of the Corporation in
which convertible debt bridge or equity financing the Corporation receives aggregate gross proceeds
equal to or exceeding $5,000,000 in one closing or in a series of related closings that is approved
by the Corporation’s Board of Directors, or (y) any liquidation event (as defined in Section 2(f)
hereof) (provided that, with respect to (ii), such action does not affect the Series D Preferred
disproportionately relative to the other series of Preferred). Notwithstanding anything contained
in Section 5(d)(ii) (but subject to the automatic conversion provisions set forth in Section 3(b)),
(A) without the vote of a two-thirds (2/3) supermajority of the voting power of the then
outstanding shares of the Series D Preferred, in no event shall the liquidation preference per
share of the Series D Preferred be reduced to below the Original Series D Issue Price (as adjusted
for any stock dividends, stock distributions, combinations, consolidations or splits with respect
to such shares), (B) for purposes of determining whether an action affects the Series D Preferred
disproportionately relative to the other series of Preferred, the liquidation preference of the
Series D Preferred at any time of measurement shall include the accretion resulting from the
Liquidation Increment (subject to the cap set forth in the proviso to Section 2(a)), compounded
annually from the issue date (which amount shall be pro-rated for any partial year), and (C)
without the vote of a two-thirds (2/3) supermajority of the voting power of the then outstanding
shares of the Series D Preferred, no shares of Series D Preferred shall be required to be converted
to Common Stock by virtue of the transactions described in Section 5(d)(ii) (except in connection
with a voluntary conversion in accordance with Section 3(a)) unless the Series D Conversion Rate
(as defined in Section 2(a)) with respect to the shares of Series D Preferr
ed that are required to
be converted shall be increased by an amount equal to 1.25 times the Series D Preferred Conversion
Rate otherwise in effect per year, compounded annually from the Series D Original Issue Date
through the date of such conversion (which amount shall be pro-rated for any partial year)
(provided that the Series D Conversion Rate shall not be adjusted as a result of this Section
5(d)(C) to a number more the 2.5 times the Series D Conversion Rate otherwise in effect). For
avoidance of doubt, (1) the following shall not be deemed to affect the Series D Preferred
disproportionately relative to the other series of Preferred: the creation of a class or series of
security having rights, preferences or privileges pari
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passu with or prior to the shares of any class of security of the Corporation, and (2) no
adjustment to the conversion rates or Conversion Prices of any shares of any series of Preferred
other than the Series D Preferred, or any antidilution adjustment to any series of Preferred other
than the Series D Preferred, shall occur as a result of this Section 5(d).
e. Series D Vote. For so long as at least Seven Hundred Fifty Thousand (750,000)
shares of Series D Preferred shall be outstanding, the Corporation shall not declare or pay a
dividend without the consent of two-thirds of the voting power of the then outstanding shares of
Series D Preferred.
f. Board Size. The authorized number of directors of the Corporation’s Board of
Directors shall be determined as set forth in the Bylaws of the Corporation.
g. Board of Directors Election. For so long as at least One Million (1,000,000)
shares of Series A Preferred (as adjusted for any stock dividends, stock distributions,
combinations, consolidations or splits with respect to such shares) remain outstanding, the holders
of the Series A Preferred, voting together as a separate class, shall be entitled to elect two (2)
directors of the Corporation. For so long as at least One Million (1,000,000) shares of Series C
Preferred (as adjusted for any stock dividends, stock distributions, combinations, consolidations
or splits with respect to such shares) remain outstanding, the holders of the Series C Preferred,
voting together as a separate class, shall be entitled to elect one (1) director of the
Corporation. For so long as at least Seven Hundred Fifty Thousand (750,000) shares of Series D
Preferred (as adjusted for any stock dividends, stock distributions, combinations, consolidations
or splits with respect to such shares) remain outstanding, the holders of the Series D Preferred
voting together as a separate class, shall be entitled to elect one (1) director of the
Corporation. The holders of a majority of the Preferred and the Common Stock, voting together as a
single class (with the Preferred voting on an as-converted basis), shall be entitled to elect the
remaining number of directors authorized, if any.
6. Status of Converted or Exchanged Preferred. In the event any shares of Preferred
shall be converted pursuant to Section 3 or exchanged for another series of Preferred pursuant to a
transaction authorized by a majority of the Board of Directors, the shares so converted or
exchanged shall be canceled and shall not thereafter be issuable by the Corporation.
7. Common Stock.
a. Dividend Rights. Subject to the prior rights of holders of all classes of stock
at the time outstanding having prior rights as to dividends, the holders of the Common Stock shall
be entitled to receive, when, if and as declared by the Board of Directors, out of any assets of
the Corporation legally available therefor, such dividends as may be declared from time to time by
the Board of Directors.
b. Liquidation Rights. Upon the liquidation, dissolution or winding up of the
Corporation, the assets of the Corporation shall be distributed as provided in Section 2 of Article
IV(B) hereof.
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c. Voting Rights. Each holder of Common Stock shall be entitled to one (1) vote for
each share of Common Stock held, shall be entitled to notice of any stockholder meeting in
accordance with the Bylaws of the Corporation, and shall be entitled to vote upon such matters and
in such manner as is otherwise provided herein or as may be provided by law. Except as provided by
law, this Corporation’s Sixth Amended and Restated Certificate of Incorporation or the provisions
establishing any outstanding series of Preferred, holders of shares of Common Stock shall vote
together with the holders of all outstanding shares of Preferred.
d. Increase or Decrease in Authorized Shares. The number of authorized shares of
Common Stock may be increased or decreased (but not below the number of shares of Common Stock then
outstanding) by an affirmative vote of the holders of a majority of the outstanding shares of
capital stock of the Corporation, irrespective of Section 242(b)(2) of the Delaware General
Corporation Law.
ARTICLE V
The Corporation is to have perpetual existence.
ARTICLE VI
Except as otherwise provided in this Amended and Restated Certificate of Incorporation, the
Board of Directors may make, repeal, alter, amend or rescind any or all of the Bylaws of the
Corporation.
ARTICLE VII
Elections of directors at an annual or special meeting need not be by written ballot unless a
stockholder demands election by written ballot at the meeting and before voting begins or unless
the Bylaws of the Corporation shall so provide.
ARTICLE VIII
Meetings of stockholders may be held within or without the State of Delaware, as the Bylaws
may provide. The books of the Corporation may be kept (subject to any provision contained in the
statutes) outside the State of Delaware at such place or places as may be designated from time to
time by the Board of Directors or in the Bylaws of the Corporation.
ARTICLE IX
Subject to the provisions of Article IV, the Corporation may amend, alter, change or repeal
any provision contained in this Amended and Restated Certificate of Incorporation, in the manner
now or hereafter prescribed by statute. All rights conferred on stockholders herein are granted
subject to this reservation.
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ARTICLE X
To the fullest extent permitted by the General Corporation Law of Delaware, as the same may be
amended from time to time, a director of the Corporation shall not be personally liable to the
Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director.
If the General Corporation Law of Delaware is hereafter amended to authorize, with or without the
approval of a corporation’s stockholders, further reductions in the liability of the corporations
directors for breach of fiduciary duty, then a director of the Corporation shall not be liable for
any such breach to the fullest extent permitted by the General Corporation Law of Delaware as so
amended.
Any repeal or modification of the foregoing provisions of this Article X, by amendment of this
Article X or by operation of law, shall not adversely affect any right or protection of a director
of the Corporation with respect to any acts or omissions of such director occurring prior to such
repeal or modification.
ARTICLE XI
To the fullest extent permitted by applicable law, the Corporation is authorized to provide
indemnification of (and advancement of expenses to) directors, officers, employees and other agents
of the Corporation (and any other persons to which Delaware law permits the Corporation to provide
indemnification), through Bylaw provisions, agreements with any such director, officer, employee or
other agent or other person, vote of stockholders or disinterested directors, or otherwise, in
excess of the indemnification and advancement otherwise permitted by Section 145 of the Delaware
General Corporation Law, subject only to limits created by applicable Delaware law (statutory or
nonstatutory), with respect to actions for breach of duty to a corporation, its stockholders and
others.
Any repeal or modification of any of the foregoing provisions of this Article XI, by amendment
of this Article XI or by operation of law, shall not adversely affect any right or protection of a
director, officer, employee or other agent or other person existing at the time of, or increase the
liability of any director of the Corporation with respect to any acts or omissions of such
director, officer or agent occurring prior to such repeal or modification.
* * *
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IN WITNESS WHEREOF, the undersigned has executed this certificate on June 6, 2002.
| COMSCORE NETWORKS, INC. |
||||
| By: | /s/ Xxxxx Xxxxxxx | |||
| Xxxxx Xxxxxxx, | ||||
| President and Chief Executive Officer | ||||
